Historically, Olympic Dam has released few Request For Quote (RFQ) Work Instructions on the Local Buying Program portal, which limits the number of supplier quotes for buyers to investigate, and reduces purchasing alternatives. Buyers typically release Sole Source work opportunities to utilise those suppliers with pre-existing working relationships and experience on-site.
The third sourcing option, Request For Tender (RFT), has bucked the trend and experienced a sudden rise in release. This offers a wide group of varied suppliers and buyers opportunities to get the greatest value from the LBP when sourcing goods and services locally.
The RFT process provides options for buyers to select specific suppliers to engage with through the tender process. For example, buyers can select their target audience by business name, a region, a Language Group, Indigenous Business or a Traditional Owner business. This functionality has led to further usage of the RFT capability across multiple departments on-site, especially as more buyers become more aware of the advantages.
- RFT offers a more transparent and focused path for a buyer to offer work to a selected group of suppliers without having to release the work opportunity to an entire supply category. This allows buyers to fine-tune their search dependent on purchasing requirements. It also presents an opportunity to build business relationships through the sharing of clear feedback – which is an ability not offered through the RFQ process.
- An ideal opportunity to reach a larger audience more specific to the purchase requirement and allows the buyer to connect with a specifically targeted group of businesses.
- Increased use of the RFT functionality is offering more options to BHP Buyers and improved transparent communication of information for suppliers.
“The new Request for Tender function on the Local Buying Program portal has enabled local suppliers to access varied work opportunities with Olympic Dam. It also gives businesses access to supply to BHP, when they may have never had that opportunity previously. We work closely with suppliers and buyers to ensure responses to tenders are successfully submitted and ensure positive engagement during the process.” Jessica O’Neill – Business Development Advisor, C-Res.