Local Buying Program. Supplier Information Sessions: Port Hedland 19 September September 2017

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1 Local Buying Program Supplier Information Sessions: Port Hedland 19 September Newman 20 September 2017

2 Agenda WHAT: WHY: HOW : WHEN: WHO: Is the Local Buying Program? Value and benefit to BHP / Community LBP portal works Timelines Support contacts 2

3 What is the Local Buying Program? Online portal with one point of access for all Complete procurement to pay processes (different to other procurement portals) Builds relationships between BHP operations, local small businesses and stakeholders Assists with building capability and capacity in local supply chain Delivered by C-Res, making it easier for small businesses to work with BHP 3

4 BHP s Vision driving regional economic development and creating shared value in our communities delivered by: A robust and transparent community procurement process built on competitive commercial principles; Reinforcing long-term tangible and sustainable relationships built on trust and respect; BHP Local Procurement Local Business Capability Developing our internal capabilities to deliver on local and indigenous sourcing objectives; Relationship Empowering local business communities through business capacity building.

5 Strategic Partnership to deliver the Program C-Res are engaged as an agent for BHP solely to deliver the LBP C-Res is a cost neutral entity which allows reinvestment of funds back into the region C-Res has successfully been delivering the LBP in Central Qld since 2012 and Hunter Valley in NSW since 2016 C-Res have staff based in the Pilbara and will be recruiting more 5

6 Benefits to BHP Formalised engagement mechanism ( User transactions captured in individual workspace Faster Supplier on-boarding On-line supplier directory (visibility on available Suppliers) Ability for BHP employees to create a strong and diverse local economy and community Alignment with 1SAP 6

7 Benefits to Local Business Simplified engagement tool website On-line supplier directory for Operations Greater exposure and visibility across BHP Simplified on-boarding process Quicker payment terms 21 days from submission of invoice to payment Dedicated C-Res staff located within the region Access to economic and community development programs enhancing the long term sustainability of local businesses and the Program More opportunities for local businesses 7

8 The story in QLD since 2012 and NSW since 2016 Total approved suppliers local businesses 107 in NSW 758 in QLD Since commencing in 2012 Total Approved WI s 15,857 Total Approved Spend - $151M Total payments to suppliers 25,000+ Average payment days 12.2 (from receipt of invoice to payment) 8

9 Supplier Eligibility Criteria - WA Employ less than 20 full-time employees (FTEs) or equivalent, not including casual employees, subcontractors, trainees or apprentices Businesses must have a significant physical presence in the eligible Local Buying Program areas. For Western Australia, eligible areas are defined by communities with the postcodes of: Port Hedland South Hedland Newman Nullagine Marble Bar Tom Price Have an ABN, be registered for GST and have appropriate insurances including Workers Compensation (if an Employer) and Public Liability (mandatory) Provide goods or services aligned with BHP Minerals Australia categories and have the appropriate personnel, management and financial capacity to deliver goods and services 5 Agree to the C-Res Claims Process 6 Demonstrate alignment with BHP s Charter and Code of Business Conduct 7 Actively support the local community 9

10 Register here! 10

11 Supplier Registration Read all information carefully and have all documents ready Tick all boxes to move to the next page 11

12 How the LBP works C-Res processes claims via Quadrem and pays supplier within 21 days from receipt of claim BHP Identifies goods/ services required and raises Work Instruction (WI) on website portal Suppliers submit quotes on website portal until quote due date Supplier submits claims to C-Res Quotes close, C-Res processes and provides recommendation C-Res receives Purchase Order (PO) via Quadrem and notifies supplier to deliver goods or perform services BHP raises Purchase Req (PR) using information on PR tab BHP User reviews recommendation on Summary Tab and accepts or rejects a response via portal BHP C-Res Supplier 12

13 What can be supplied to BHP through the LBP? Functions / events Catering, cleaning Venue hire for training and meetings Employee gifts Services Awards Entertainment Event security Goods Landscaping (gravel, plants etc) for facilities upgrades Electrical appliances (fridges, ovens, air-conditioners) Building materials (local hardware) Glass, window s and windscreens Industrial Consumables Safety Equipment/ First Aid Chemicals Signs/ Graphic design Office Supplies Services Equipment hire lighting plants, generators, compressors, EWP s Freight and courier services Site pest control Printing of communication material (signs, newsletters etc) Embroidering of site PPE Vehicle Hire/ Bus Hire Site Maintenance 13

14 Timeline 18 Sept 2 Oct Website live for Supplier registrations 19 th /20 th Supplier Information Sessions Website live for BHP End-Users, training commences and work opportunities can be pre-loaded for release on the 30 th October Suppliers start to be advised if registration is approved and can access their workspace 30 Oct Work instructions start to be released to Suppliers Nov Supplier training sessions will be offered in Port Hedland and Newman 14

15 Who do I contact for support? C-Res: Debbie Porter Program Manager based in Port Hedland BHP: Peter Barrenger Principal, Local Content, BHP Website: 15

16 16

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