Developing a framework for purchasing and supply management in a mine

Abstract

A literature study was done on the concepts of purchasing and supply management to develop a framework of purchasing and supply management in a mine. A questionnaire was designed, based on the findings in the literature, and to assist to develop a framework of sustainable purchasing and supply management process and procedure towards value creation in a mine. The state of the internal purchasing and supply management process and procedures was assessed through a survey questionnaire to extract the data. The elements of procurement and supply management were broken down into clear activities towards the creation of value in a mine. The key area of concern is to ensure adherence to proper processes and procedures to create an environment that is conducive towards the objectives of the mine and install a mechanism that is measurable. The focus on procurement and supply management towards value creation has became the key determining factor in the mine. A practical development framework of sustainable purchasing and supply management manage towards value is proposed for a mine and to address the gaps found after analysing the questionnaires. The findings of the empirical study and the literature review were used as the basis of the framework. In this thesis the main focus was Purchasing and Supply Management process and procedures, and Contract Management. The relationship between procurement in the supply chain management process and its functional departments is critical towards sustainable development and value creation. Purchasing and Supply Management are one of the key value drivers in a mine and in particular assisting with governance of purchasing activities which contribute significance towards value adding and cost. Finally, conclusions and recommendations are drawn and rendered in order to develop a framework of purchasing and supply management in a mine.