Transactional Procurement - Ghana

Overview

In 2011 the gold price took a negative downturn, which had a direct impact on the mining industry. The reduced gold price encouraged producers to focus on containing soaring operating costs targeting procurement savings in the global supply chain market. One of our clients wanted to enhance and automate the supply chain performance to accommodate the falling gold price and incorporate efficiency through-out both its Ghana operations. In addition to achieving basic outsource driven economies of scale, our client also felt this transition would enable them to develop its supply chain in order to deliver additional value to its stakeholders.

Client Challenge

Identify the overall cost of supply chain acquisition. Lower the cost of overall supply chain acquisition as quickly as possible. Reducing the costs associated with procurement ensuring stakeholders still receive a high level of service with no impact to production.

Solution

Storm Procurement has been supplying their Ghana operation for 7yrs. In order to meet requirements, our client looked to Storm to leverage on their experience, technology and resource pool to provide a streamlined network through supply chain outfitted with automated advanced systems, international sourcing through strategically placed offices and warehouses facilities. This would allow our client to focus its services and add enhancements to the supply chain as required.

Results

Increased order accuracy rate

Boosted on-time delivery performance

Enhanced visibility through-out the supply chain

Improved customer satisfaction

Added flexibility to operations

Provided technology solutions to supply chain

Reduced overall costs and applied savings

Conclusion

With Storm Procurement applying and constantly reviewing its transactional model coupled with continual development it has allowed and continues to allow our client to adapt their cost reduction measures and meet business challenges. Cost savings in year one was meet ($3m) and year two achieved a higher rate due to technology inclusion.