The FINANCIAL — Accenture has signed a six-year contract with Glencore Queensland Ltd., a subsidiary of Glencore plc, one of the world’s largest diversified natural resource companies, to provide sourcing and procurement services for Glencore’s Australian copper and zinc businesses. It is expected that the contract will deliver cost savings to Glencore of more than USD $300 million over the next six years.
Accenture will provide end-to-end sourcing and procurement services and will bring category expertise, cloud-based sourcing, category-management and procure-to-pay tools, as well as market sourcing insights and analytics to help the company maximise procurement and sourcing benefits.
Glencore’s Mount Isa Mines Central Services General Manager, Trevor Gray, said the project is an important step toward improving the business’s competitiveness. “We are continuously reviewing opportunities to improve our global competitiveness and long-term sustainability,” he said. “Our teamwork with Accenture will deliver further productivity improvements and significant cost savings across our business.”
Accenture was selected based on successful projects delivered for Glencore in other parts of the world, as well as for its extensive global and Australian experience in sourcing and category-management services in mining and other industries.
The work will be performed at Glencore’s Mount Isa Mines operation, the Accenture Operational Efficiency Centre of Excellence in Brisbane and Accenture Global Delivery Network locations, according to Accenture.
“Mining clients continue to grapple with cost pressure in the ongoing environment of low commodity prices,” said Joost Van De Meent, managing director, Resources, at Accenture. “Our solution will extend Glencore’s existing procurement capability to improve spend management and reduce transaction costs, while improving visibility across Glencore’s businesses.”