Grinding media

2010
Introduction to the initiative
WWSS Group purchasing
July 2009
 Grinding media 2010
Planning

•Request For Requirements sent to BUs 24 July:

RFR sent

•Deadline for receipt of RFR answers 10 Sept.:

RFR answers

•Launch of the Request for Proposal to

suppliers 21 Sept.:
RFP Sent

•Deadline for receipt of RFP answers 7 Oct.:

RFP answers

•Meetings team with suppliers 19-23 Oct.:

Meetings
suppliers

•Second offers from suppliers 30 Oct.:

2nd offer

•Business cases 6-13 Nov

Business cases

•Contracts 16-20 Nov.:

Contracts

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Success factors

 Volume forecast with later data available in the BU

 Good feed-back in supplier’s performance

 Mixing policy: top up with similar quality media of other

worldwide validated suppliers (Toyo, Vega, Magotteaux) without
trials

 Total Cost of Ownership (TCO) approach: price and wear rate

should be taken into account to calculate the final cost

 Innovation: 21% Cr in 1st compartment (20-40% TCO decrease)

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Milestones

 1- Definition of strategy with cross functional team

 2- Request For Requirements (RFR)

 3- Request For Proposal (RFP)

 4- Negotiations

 5- Business cases

 6- Framework agreement signature

 7- Business case implementation

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1- Cross functional team defines sourcing strategy

Group Technical
BU Purchasing
Purchasing Community

Wolfgang
Beatriz Méndez Europe Carmen Moldovanu
Stoiber
Sabrina Salah- Jose Bongers /
Delahaye Steve Weller

Middle East Mohammed Zada

Africa Chibwe Mwelwa

Americas Alexandro Guitton

Asia Megan Zhai

 The CFST mission consists in analyzing the needs, defining the sourcing strategy and selecting the
suppliers (global and local). They also support the implementation (when required) of the sourcing
strategy by the BUs.
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 2 - Request For Requirements (RFR) to BU
 All BUs using grinding media should answer, even if they work with
local suppliers.

3 - Request For Proposal (RFP) to Suppliers

 Nominated suppliers will be all the current suppliers (unless bad
performance 2008) and new proposals from the BU

 All suppliers (global or local) should answer to the RFP in E-

source

 A general questionnaire will be sent to the suppliers

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4- Negotiations
 Group purchasing/Cross-functional team negotiates with global
suppliers

 BU negotiates with local suppliers

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5- Business case
 Main supplier selection criteria
 Price
 Payment terms
 Stock optimisations and consignment/stock
 Quality
 Logistics and service
 Health & Safety and Sustainable development
 Business case
 Proposed by Group Purchasing/Cross-functional team to BU
 Validation with BU for the feasibility (validation of new suppliers schedule,
updates in initial data, etc.).
 For local supplier BUs should propose the Business Case to Group
Purchasing/ Cross-functional team for common validation

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 6- Framework agreements
 Group Purchasing signs global contracts and post them in the
Contract Database (E-source)

 BUs sign local contracts following the same terms and

conditions

 Consignment stock and particular stock request should be

negotiated directly between BU and supplier, Group Purchasing
could support the negotiations

7- Implementation of the agreements

 Under the responsibility of the BU purchasing director for both
local and global suppliers

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