Coaltech Research Association

Transformation of the Coal Mining Procurement Supply Chain

Review of preferential procurement and small supplier development at South African coal producers, based on interviews with procurement staff, suppliers and accreditation agencies, with recommendations for management.

by N Molefe & SGE Ashworth | December 2004

What this report found

Three modes of intervention were found in coal company procurement: preferential procurement rules, segmentation of goods and services by suitability for transformation, and support programmes for small suppliers. Progress stalled where supplier development was handled by staff carrying other duties, since work not tied to production loses time and has no target. The remedy proposed is procurement targets linked down through commercial and production management.

Description

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