Understanding Supply Chain Best Practice
Your role in driving cost reduction
As part of our work to instil a cost-conscious culture and improve Anglo American’s working capital, we are focusing on Supply Chain Best Practice
to ensure value delivery to the business.
This includes using preferred payment terms and monitoring single or sole source motivations.
Improving working capital through preferred payment terms
In South Africa, the default payment term is 60 days from month end. Approval is required to deviate from the preferred payment terms. Exceptions for QSEs (Qualifying Small Enterprises) and EMEs (Exempted Micro Enterprises) will be considered with relevant documentation.
Driving commercial outcomes through limiting single and sole source motivations
An increasing number of suppliers in South Africa were onboarded through sole or single source motivation. This however prevents us from getting the best commercial outcomes and leaves us vulnerable to anti-competitive practices including collusion, price-fixing, and corruption.
Your role in driving cost reduction
Watch replays of our focus sessions on topics such as:
- Four key things you can do to ensure we pay suppliers on time
- How can I gain visibility of my contracts?
- Introduction to Pilog and how to search for codified items
- How to onboard a supplier
- How to create an RFC
- Eliminating after-the-fact purchase orders (Pos)
- Purchasing violations & timeous supplier payments
- Invoice processing & payment process
…and others.
Your familiarity with, and adherence to, Supply Chain Best Practice helps us work together to drive down costs, optimise working capital and deliver value to Anglo American.