What are the benefits of the Local Buying Program for Suppliers?
There are many benefits for local businesses associated with participating in the Local Buying Program. Some of the benefits include:
- Simplified engagement tool via a specifically designed website
- Greater exposure and visibility across BHP / BMA / BMC through an online ‘supplier directory’
- Greater exposure to work opportunities (Work Instructions)
- Simplified registration process
- Quicker payment terms
- Dedicated C-Res Business Engagement Advisors located within the regions and Program Administrators providing continuous support and assistance to local businesses
- Access to business development programs to enhance the long term sustainability of individual businesses (i.e. Business Planning, Succession Planning, Cash-flow, Customer Service, Online Marketing Strategies, Accounting Software Packages to name a few)
How is BHP supporting local businesses?
To better support local businesses BHP are working on a series of measures that will be implemented across the business. These measures, along with the roll-out of the LBP, form part of the comprehensive Local and Indigenous Sourcing Strategy, aimed at lifting BHP’s capability and performance in working with local and Indigenous suppliers.
BHP recognise that the complexities of bidding for work can present barriers for small businesses. The Local Buying Program provides a platform for small local businesses to supply goods and services to BHP, BMA and BMC operations via a competitive tender process with reduced payment terms.
Who can participate in the Local Buying Program?
Businesses are required to meet a number of minimum mandatory qualification criteria prior to being assessed and approved as a ‘Local Buying Program’ supplier by C-Res.
For the full list of eligibility criteria refer to the Eligibility page.
Which operations can I supply to?
How do I register as a Supplier?
Local businesses in Queensland, New South Wales, South Australia and Western Australia can register here.
Requests are assessed on an individual basis in alignment with the Local Buying Program eligibility criteria. Once registered, suppliers will be able to access and respond to work opportunities (Work Instructions) as they become available (through their C-Res/LBP login and Workspace). It generally takes C-Res three working days to process new registrations.
Are there any costs associated with being a Local Buying Program Supplier?
There are no costs associated with registering to become a Local Buying Program supplier or to use the program.
For each transaction processed through the Local Buying Program, BHP / BMA / BMC pay a nominal percentage to C-Res to cover operating expenses (as a cost neutral entity) and to make a contribution to the Local Buying Foundation or community development initiative.
C-Res then covers all transactional costs on behalf of local businesses incurred through the Local Buying platform to facilitate purchasing and payments.
What types of Work Instructions are available for Suppliers to quote on?
There are two sourcing methods available under the Local Buying Program including ‘Request for Quote’ and ‘Sole Source’.
- Request for Quote (RFQ) requirements will be communicated via email to suppliers that match their registered category and service area. Work opportunities (Work Instructions) are available for quoting in the Supplier’s Workspace.
- Sole Source (SS) requirements will be communicated to a nominated supplier if the work opportunity (Work Instruction) meets approved criteria for sole sourcing. Work opportunities (Work Instructions) are available for quoting in the Supplier’s Workspace.
RFQ is the preferred method of communicating Work Instructions as it gives more opportunities to suppliers who may be able to meet the scope of the work required.
How are work opportunities (Work Instructions) communicated to Suppliers?
Buyers will submit work opportunities (Work Instructions) online via the LBP website. Suppliers will be advised via email of work activity and asked to submit a quote via their Workspace.
C-Res will review supplier quotes against the scope of the Work Instruction and recommend suitable suppliers to the buyer (including product or service quality, supply capabilities, goods/service availability and delivery). The final decision rests with the buyer.
Who am I competing against?
Local Buying Program Suppliers will compete for work opportunities through the Local Buying Program against other Local Buying Program Suppliers in the program they are participating in.
The BHP / BMA / BMC employees using the Program can still request quotes from SAP Vendors and compare with Local Buying Program Supplier quotes and make an informed decision. However, SAP Vendors that are not eligible for the Local Buying Program will not be able to quote via the LBP website as this is only available for businesses that meet the mandatory criteria.
As part of the BHP Group, all BHP operations are subject to various global supply contracts and cannot use the Local Buying Program for all work opportunities. Exceptions to this will be at the discretion of BHP / BMA / BMC.
How do I get paid and who pays me?
C-Res operates as an agent for BHP / BMA / BMC and all claims are to be submitted to C-Res via the Supplier Workspace. To ensure payments can be processed in a timely manner an invoice made out to C-Res must be attached to every claim. Once C-Res has checked the claim and invoice, it will be submitted to BHP / BMA / BMC and when accepted, C-Res will receive payment and deposit the funds into the supplier’s nominated bank account.
To avoid any payment delays, please ensure all invoices are made out to C-Res.
What if my quote is unsuccessful?
Businesses registered under the Local Buying Program are not guaranteed work. The Local Buying Program is a competitive procurement program and suppliers will be required to remain competitive to secure work.
To assist local businesses to effectively supply BHP / BMA / BMC, BHP / BMA / BMC employees using the program will be encouraged to provide feedback on their supplier selection. C-Res will assist businesses to overcome supply challenges (through training and development programs) and, where possible, identify trends, challenges and opportunities linked to supplying industry.
What are the Categories?
The Local Buying Program is not limited to certain categories and covers a broad and diverse range of goods and services.
Any Work Instruction can be issued via the program, as long as its value is less than US$2 million p.a. and no existing BHP supply / service agreement exists.