Simple steps to becoming a preferred supplier

FOLLOWING a few simple rules can make the difference between becoming a preferred supplier by coal producers and being overlooked, says Anglo Coal’s Brendan Dyer.
Simple steps to becoming a preferred supplier Simple steps to becoming a preferred supplier Simple steps to becoming a preferred supplier Simple steps to becoming a preferred supplier Simple steps to becoming a preferred supplier

 

Angie Tomlinson

Dyer, who works at Anglo’s Callide mine, was speaking at L&SC Strategies’ supply chain networking sessions at QREX last week.

Dyer said being a good supplier is more than having the lowest price – it is about efficient processes, effective communication and reduced administration.

He said simple things like responding to quotes and tenders promptly and ensuring paperwork is properly referenced is a good start.

He said at times suppliers – no matter how big or small – left off order numbers, delivered goods to somewhere they weren’t specified to do, overstated capacity, ignored expediting letters, neglected safety and environmental requirements or invoiced without completing the work. Any of these things can promptly relegate a supplier off the preferred list – or ensure they never make it on there.

For Anglo it is imperative when completing a quote the supplier gives the correct cost and lead times, as well as the standard information such as a full description of the goods or services, part numbers, brand and quote reference.

If the quote is won, Dyer said Anglo required a purchase order number – which is its site reference – that should appear on delivery dockets, invoices and any other related documents.

Dyer said investing in electronic commerce could also be a bonus for a supplier. Many suppliers these days are taking advantage of e-procurement solutions provider Quadrem, which boasts the likes of customers including Anglo American, BHP Billion and Rio Tinto.

Dyer said if a supplier can ensure these few simple guidelines are followed there is an opportunity for them to get more work, they will be perceived as a good supplier and there is further chance of repeat business. There is also greater chance of getting paid on time and it can mean the supplier maintains a constant cash flow.

“If you do all these things and help our administration you will stick out in our mind and are more likely to get business,” Dyer said.

Also presenting at L&SC Strategies’ supply chain networking sessions was BMA’s Russel Soper from the company’s capital contract office, who echoed many of Dyer’s points.

He said a preferred supplier in BMA’s eyes was one which had an in-depth understanding of its product or service and the industry, provided quality goods and services and delivered in full, on time, error free.

He also highlighted that change of suppliers “comes from site” – so it is there where suppliers must impress with their performance.

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