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Collaboration Opportunities
and Supplier Expectations
Björn SteneckerCPO
Göran LindholmHead of Supply BA Smelters
Andreas BivallHead of Procurement Development
How can we together turn waste
rock into metals?
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Boliden Procurement
Smelters CategoriesGroup Managed Categories
Logistics, IS/IT, IM&S
Mines Categories
Total Spend 1,5B EUR
BulkFixed
EquipmentMobile
EquipmentTools &
Consumabl.Logistics Services
Indirect Material & Services
IT and Telco Electrical
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Supplier selection & requirements
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Our Priorities Supplier requirements
Qualifiers
Selection
differentiators
Safety
Productivity
Cost
Innovation
• Safety
• Productivity
• Performance
• Sustainability
• Cost leadership
• Operational Excellence
• Quality
• Innovation
• Support multiple sites
We will always strive to enable healthy and fair competition
Digitizing the invoice process
The “Cure”: Invoice automation- Improves efficiency and reduces error with
automatic matching of invoices against PO
Instructions for invoicing:
• Invoice should refer to a valid purchase
order number
• Invoice should match the agreement
• Due date will always be calculated from
date of received correct invoice
• Boliden not responsible for lost paper
invoices
Use Electronic invoices- Easy to send and receive
- Improves quality and handling times in invoice process
- Improves on-time payment rate
PDF invoice is NOT an electronic invoiceSend e-invoices!
The “Pain”High yearly transactional volumes
- 200,000 Invoices
- 460,000 Invoice lines
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Suppliers at the summit
Benny Larsson Schakt AB
LångdahlsÅkeri AB
KGH:s Borr AB
who sends e-invoices
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Digitizing the order process
High yearly transactional volumes
- 100.000 Purchase orders
- 300.000 Purchase order lines
Today:
- Lot of manual work
- Slow processes
- Risk for mistakes
For both parties!
Tomorrow’s “Cure”
Boliden projects Expectations on
Suppliers
2018: Purchase orders
automatically created and
sent
When informed, be observant
and report deviating patterns
2018/19: E-catalogue Support a Boliden 3rd party,
single catalogue solution
2018/19: EDI Adapt to a Boliden 3rd party
EDI hub
2019: Bar codes on Delivery
notes
Print bar codes compliant
with delivery
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Today’s “Pain”
Will you be ready for tomorrow’s order process?
Benny Larsson Schakt AB
LångdahlsÅkeri AB
KGH:s Borr AB
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Expectations
1. Be Competitive
2. Be Safe & Sustainable
3. Be Innovative
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Expectations
1. Be Competitive
2. Be Safe & Sustainable
3. Be Innovative
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Stability in a cyclical world
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Source: Wood MacKenzie; Boliden Annual report 2007-2016
Building for the next downturn
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Bo
lid
en
Are
a
Garp
en
berg
Tara
Bo
lid
en
Are
a
Ait
ik Kyly
lah
ti
Cash cost position - Only the most competitive will make it
Expectations
1. Be Competitive
2. Be Safe & Sustainable
3. Be Innovative
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Business partner code of conduct
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Human Rights Labour RightsAnti Corruption Environment
Supply chain control
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Suppliers with structured CR processes has a competitive advantage
Increasing
difficulty in CR
follow up
Supplier Safety Performance
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Monthly review of supplier safety performance
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Supplier Safety Performance
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Supplier No of LTI LTIF Comment
Supplier 1 7Improvement program initiated, further improvements needed
Supplier 2 4 Improvement program implemented (no LTI since 2016)
Supplier 3 4 Phased out
Supplier 4 4 Improvement program initiated
Supplier 5 4 Phased out
Supplier 6 4 Improvement program initiated
Supplier 7 4 Improvement program implemented (no LTI since 2016)
Supplier 8 3 Phased out
Supplier 9 3 Phased out
Supplier 10 3 Ongoing meetings to improve performance
Supplier 11 3 Action plan defined no LTI since March 2016
Supplier 12 3 Improved performance. No LTI since Jan 2016
Supplier 13 3 Improvement program to be initiated
Supplier 14 2 Improved performance. No LTI since July 2015
Supplier 15 2 Improvement program to be initiated
Supplier 16 2 Improvement program to be initiated
Supplier 17 2 Improvement program to be initiated
Long term tracking of Supplier safety performance (Illustrative and anonymized)
When on the list:
1. Improvement program
mandatory for Boliden
assignment
2. Create Monthly LTIF
reporting for Boliden
assignment
Be Safe
Everyone leaves our sites unharmed, with maintained health
Every day!
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Expectations
1. Be Competitive
2. Be Safe & Sustainable
3. Be Innovative
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
A century of transformative innovations
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Aviation
Telecom
IT
Metals and Mining
Industry challenges
Finding new reserves
Declining ore grades
Remote and difficult locations
Increasing need for capital
Energy efficiency
Securing productivity and cost control
Securing sustainable operations
Safety
Step-change of
innovation pace
needed in our
industry
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Change drivers
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METAS AND MINING –COLLABORATE AND INNOVATE
Continued demand for metals
-Supporting a developing
world
• Urbanization
• Population growth
• Growing middle class
• Aging infrastructure
Increasingly hard to set-up,
operate and decommission
mines and smelters
• Safety
• Sustainability
• Productivity
Maturing technological
enablers
• Automation
• Optimization
• Analytics
• IoT
• Robotics
• Autonomous machinery
• Teleremote equipment
• Big data
• Mobile positioning
• Traffic control
• RFID
• High powered lasers
• Automated/optimized
scheduling
• Big data
• AI/Machine Learning
• Predictive
maintenance
• Robotics
• CO2 free process
• Combined hydro- and
Pyro metallurgy
• 3d Printing
• Mobile Positioning
• Autonomous vehicles
• CO2 free transports
• RFID
• Predictive
maintenance
• Drones
• Integrated and
portable devices
• XRF/Tomography
• 3D-4D Modelling
• 3-D seismics
Technological enablers
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Finding it Mining it Smelting it Selling it
• ? • ? • ? • ?
Mentimeter Poll
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
What emerging technologies within your
space will have the largest impact on the
metals and mining industry in the coming
10 years?
Innovation and collaboration – What we offer
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
• Openness
• Suitable environment
• Competence and creativity
• Proven track record
• Reference value
• Low IP ownership demands
• Proximity to the best cluster
Ideal test bed
Innovation and collaboration – What we ask for
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
• Allocate R&D resources towards mining and smelting
• Invest and innovate for future cost leadership
• Be proactive and innovate within our cluster
• A plan to commercialize the innovation in near future
Summarizing
Stable in a cyclical world
Get on-board with digitization
Be Competitive
Be Safe
Be Sustainable
Be Innovative
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
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