Supply Chain and Logistics
Project Supply Chain Services has a strategy that aims to handle the process of sourcing, requisitioning, ordering, expediting, inspecting and shipping to a construction site where the equipment and materials will be installed under a construction management team. At G Mining Services, Supply Chain Services have six functionalities:
- Global Procurement
- Contract Management
- Expediting
- Supplier Quality Surveillance
- Transport & Logistics
- Site Material Management
Global Procurement
Global Procurement is all about managing relationships with suppliers, engineering and contractors and to ensure the project runs smoothly and is completed as planned. As opposed to manufacturing, Global Procurement centers more around short-term goals—like completing a construction project that requires its own budget, team, and materials, while also operating on its own schedule with milestones and completion dates determined by planners, cost controllers and other key stakeholders.
Global Procurement takes place at different level of studies, such as during PEA, PFS, FS, Detailed Engineering and Execution.
Depending on the level of studies, the Global Procurement team will engage suppliers and contractors to bid through either quotation (RFQ) or proposal (RFP) processes. Either proceeding with an RFQ or RFP, the Global Procurement staff will be guided by ethical standards and follow the AACE guidelines.
Contract Management
Project Contract Management is a complex and challenging process. Project Contract Management is the practice of managing contractual obligations in view of ensuring mutual success between a client and a contractor. It involves both legal matters to establish the agreement validity, as well as financial matters to secure payment.
In order for any project to be successful, the implementation of a contract formation process (pre-award) involves creating and maintaining a document that outlines the details of the contract, including scope, project deliverables, timelines, and payment terms.
On the other hand, the contract administration process consists of the post-award activities occurring at a construction site. This process is critical in ensuring that both parties comply with the agreed-upon terms and conditions, thus reducing the risk of disputes and conflicts.
Expediting
Expediting is the process of making a purchase or contract move quickly, efficiently and cost effectively. Expeditors must ensure timely follow-up with buyers, engineering, suppliers, contractors and other customers to prevent any delays to materials and equipment.
Expeditors will continually drive resolution of conflict and progress at all stages of the Purchase Orders (POs). Expeditors are committed to regular informative reporting, consistent follow-up with all necessary stakeholders, and the eventual success of the project. Standard stakeholders dealing with Expeditors are, but not limited to:
- Buyers and Contract Administrator
- Package Engineers
- Suppliers and Contractors
- Transport & Logistics
- Site Management Team
Quality Surveillance
Quality Surveillance is the continuous monitoring of all aspects of fabrication processes that are planned and scheduled as to not impede product delivery. The Quality Surveillance activities are based on performance and risk to maintain the efficiency and quality of the processes that verify the status of conditions, methods, procedures, and products, and analysis of associated records.
QS programs selectively audit, evaluate, inspect, observe, and review systems, including engineering and procurement, fabrication, manufacturing, and quality management systems. QS provides a risk management, rather than a quality management function.
Material Management
Materials Management is charged with ensuring materials and equipment are procured to support schedule and are available to the Construction Management Team where and when needed.
Materials Management Team includes Site Buyers and Material/Warehouse Lead. Material Management Team activities are undertaken in close coordination with the Supply Chain team, including Expeditors, QS, T&L and Contract Administrators.
Materials Management Team also works closely with the Construction Management Team and focuses on the planning and control of both the quality and quantity of materials and equipment to be procured and installed according to the schedule.
Transport & Logistics
The transport and logistics department is an essential link in the success of the supply chain. Its objectives are to ensure deliveries according to needs while controlling costs and minimizing the inherent risks in transport operations.
- Study and assessment of tax provisions: Study and assessment of import and export-related duties and taxes.
- Study and assessment of administrative procedures and customs clearance of goods within the framework of mining agreements / conventions: Study and assessment of administrative procedures with the Ministries of Commerce and Finance of importing and exporting countries.
- Study and assessment of national and international transport insurance policies: Comprehensive or activity-based insurance policies - risk assessment.
- Determination of loading ports (POL) and consolidation points, both maritime and aerial: Studies conducted with the procurement department to determine the most efficient strategy for delivering goods to projects. Determination of export points for finished products.
- Evaluation and selection of service providers for transport and customs operations: Supplier selection process based on project needs.
- Drafting and implementation of "Standard Operating Procedures" (SOP) with various service providers: Defining procedures among different supply chain stakeholders.
- Creation of internal and external procedures manual: Tracking tables, shipping and packaging instructions.
- Dedicated project logistics cell: Management and coordination of all transport activities at both national and international levels, as well as the management of service providers.
