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Global Markets. Connected
Global Procurement & Supply
Capability Statement
Q3 2021
Axis Group International
1. Level 11, 125 St Georges Terrace
Brookfield Place
Perth 6000 Australia
T +86 138 0111 2112
Dubai | Beijing | Shanghai | Singapore | Perth | Bangkok | Mumbai | Johannesburg
Axis Group provides market access solutions. For clients
that compete in complex international markets, our deep
capabilities, expertise and commitment translate into
business performance and profitability
• Global Procurement & Supply
• Market Expansion
• Corporate Advisory
www.axisgroupinternational.com
Global Markets. Connected
1. Axis Group International - Overview
2. Global Procurement & Supply
3. Key Clients & Case Studies
4. Key People
5. Thought Leadership
Agenda
4
Axis Group solves our clients’ complex globally connected supply chains through our specialised capabilities in Global Procurement & Supply, Market Expansion & Corporate Advisory
Overview of Axis Group’s Business Units
Axis Group Client
Suppliers Global Procurement & Supply
Better buying from global markets
• Integrated Sourcing & Supply• Global Procurement Services• Capital Project Procurement Solutions• Professional Resourcing
CustomersMarket Expansion
Business growth in international markets
• Market Insight, Planning & Decision Support
• Marketing & Brand Management• Business Development & Sales• On-the-ground Support & Execution
Corporate Advisory
• Strategic Advisory
Strategic Insight & Implementation Solutions
• Transaction Advisory
Insight and action despite cross-border complexity
Global Markets. Connected
Inbound Supply Chain Solutions Outbound Supply Chain Solutions
5
Comprehensive global procurement & supply solutions thatdrive down cost, assure quality, expedite schedules, mitigaterisk and ensure ESG compliance
Integrated Sourcing & Supply• Global sourcing• International logistics• Supply to site / distribution / delivery
Global Procurement Services• Procurement advisory• Strategic sourcing• Transactional procurement• Outsourced & managed procurement solutions
Capital Project Procurement Solutions• CAPEX procurement project management• Sourcing, procurement & transaction management• Quality management (QA/QC), inspection, testing &
expediting• Project logistics management
Professional Resourcing• Skills & resource gap analysis• Talent & skills identification• Placement & on-boarding management• Ongoing management and interaction
Global Procurement & Supply
Integrated market expansion solutions for China and selected
key markets: we bring consumer goods, commodities & raw
materials, and technology & services to market, build brand
reputation and accelerate sales & market share
Market Insight, Planning & Decision Support• Market scoping & competitive landscape• Channels to market & key stakeholder identification• Commercial & regulatory environment• Partner due diligence
Marketing & Brand Management• Marketing strategy, planning & communications• Brand activation & management• Digital & social marketing services• Product / service education & representation
Business Development & Sales• Client / partner engagement strategy• Route-to-market & channel partner management• Sales management (lead development to PO)• E-commerce solution
On-the-ground Support & Execution• Export/import formalities• Warehousing & transportation• Asia team recruitment & training• 3PSP management (legal, registration agency, etc.)
Market Expansion
Trusted niche cross-border strategic and transactionadvice, with implementation support to underpingrowth and performance
Strategic AdvisoryStrategy formulation & implementation support todrive decision making, growth & profitability
• Research & analytics• Strategy formulation• Strategy implementation
Transaction AdvisoryIndependent corporate finance advisory& transaction origination services
• Origination services• Financial advisory• Due diligence• Transaction project management
Corporate Advisory
International Inbound
Supply Chain Solved
International Outbound
Supply Chain Solved
International Market
Complexities Solved
Global Markets. Connected
Our Global Procurement & Supply, Market Expansion and Corporate Advisory solutions in more detail
6
Axis Group International• Thrives in dynamic and challenging environment,
with focus on emerging and frontier markets• Emphasizes ‘actions and transactions’ through
strategy implementation• Collaborates with clients and provides integrated
solutions across their value chain• Has successfully driven cost down solutions and
mitigated supply chain complexities within several Chinese and international MNCs across various sectors and industries i.e. mining and energy, agri and agri-processing, power & infrastructure, transport, construction, manufacturing, engineering, packaging and healthcare
We leverage deep capabilities across our clients’ value chains – we have developed a unique experience curve
Extensive Supplier DatabaseMore than 8,000 identified suppliers, with over 1,800 pre-qualified
Comprehensive Quality ManagementComprehensive quality planning, Quality Assurance and Quality Control
Enable Cost-down SolutionsEnable cost-down and average savings of approximately 25% for customers (within a savings-range of 5-45%)
CAPEX Projects and OPEX/MRO SupplyExperienced in transacting in over 80 product categories across CAPEX projects and OPEX/MRO
Leader in Global Sourcing & ProcurementIndustries include mining and resources, industrial and engineering sectors, chemicals, packaging, healthcare, FMCG and general merchandise
ApproachesSophisticated methodologies, systems, processes and practices in place with an 18-year experience curve
Global ReachIntegrated, on-the-ground supply-hubs and infrastructure across China, the rest of Asia and Africa
Sourcing & Procurement• Global supply chain strategic
intelligence• Supplier identification, selection
and management• Contract terms management• Quality management and
expediting• Project and risk management
Logistics• Control towers• Logistics, supply chain and 3rd party management• Transportation, warehousing• Inventory management• Supply chain finance
Distribution & Supply• Distributor identification, selection and
management• Order management and processing• Kitting – product assembly,
repackaging, etc.• Demand management and
warehousing
• Global market intelligence• Decision support • Digital solutions for international supply chain
• Capital advisory• Team skills and resource augmentation
Suppliers Buyers
International Trading Capabilities
Client Value Chain and Our Capabilities
International Advisory Capabilities
7
Vision, Mission & Objectives
Mission
Vision Objectives
Global Markets. Connected
To be a leader in providing global market access for our clients
Shareholder & Stakeholder value
Operational Excellence
Customer Value
Financial Value
People / Community
Shareholder &
Stakeholder Value
Strategic Intent
8
Guiding Principles & Values
Axis Group operates in a manner consistent with the highest international professional and corporate
governance standards, and we respect the environment to assure sustainability
Having or showing insight and sensitivity, especially with respect to another’s beliefs and traditions
The way we carry ourselves, our attitude and etiquette form the way in which we engage with our clients
By developing strong relationships with our clients, our business is a brand they know and trust
An active approach in problem solving and thought leadership
The quality of bending easily without breaking
Ensuring that all aspects of the company put its customers' satisfaction first
Sustainable organizations strive to balance the triple bottom line of people, planet, and profit to achieve long-term success and viability
Quality is doing the right things right to meet or exceed the expectations of our clients
We believe in honesty, truthfulness and accountability for one's actions
Our Principles Our Values
Relationships
SolutionsProfessionalism
Cultural
Astuteness
Integrity & Ethics
Quality & Adding Value
Safety & Sustainability
Client Focus
Flexibility
9
Axis Group Sector Focus
Industry & Sector Experience
Extractive
• Agriculture and agri-processing
• Mining and energy
• Raw materials processing and beneficiation
Industrial and manufacturing
• FMCG/general merchandise (retail, apparel and footwear)
• Automotive, robotics, packaging and chemicals
• Power, infrastructure, transport, construction and renewables
• Heavy engineering, machinery, and light industrial manufacturing
Services
• Banking, insurance and other financial services
• Logistics and supply chain
• Information technology and communications
• Consulting, engineering and professional services
10
Axis Group is a subsidiary of Imperial
• Integrated freight management & contract logistics provider with significant scale, offering end-to-end solutions in key industries using technology as a differentiator
• Reduce time-to-market, improve customer service & mitigate risk
Logistics AfricaMarket Access
• Take ownership of inventory & responsibilityfor the full order to cash function
• Build complex route-to-market solutions that provide our clients & principals’ access to consumers across Southern, East & West Africa -mainly in healthcare & consumer industries
Logistics International
• Partner with clients to integrate logistics functionsinto their end-to-end supply chain
• Leading capabilities in chemical & automotive industries
• Specialised express distribution capabilities
Imperial at a glance
www.imperiallogistics.com
USD3 billion in revenue in 2020
Leading provider of market access & logistics solutions
Key industries -healthcare, consumer, automotive, chemicals
and industrial
25,000+ employees in 26 countries
Ranked amongtop 30 global
logistics providers
11
Johannesburg
Singapore
Shanghai
Mumbai
Dubai
Bangkok
Beijing
Delhi
Perth
Axis Group presence
Imperial presence & partnership network
Axis Group offices
Imperial and Axis Group have significant international presence, with focused solutions in our chosen markets, where Africa and Asia play central roles
Leading Australian Coal Mining Company
Conducted comprehensive spend analysis and assessed global & best cost country (BCC) sourcing potential for ~USD 400mn of spend to determine categories and commodities likely to drive cost reduction. Currently continue to implement cost reduction realisationprogramme
1. Axis Group International - Overview
2. Global Procurement & Supply
3. Key Clients & Case Studies
4. Key People
5. Thought Leadership
Agenda
14
Comprehensive global procurement & supply solutions thatdrive down cost, assure quality, expedite schedules, mitigaterisk and ensure ESG compliance
Integrated Sourcing & Supply• Global sourcing• International logistics• Supply to site / distribution / delivery
Global Procurement Services• Procurement advisory• Strategic sourcing• Transactional procurement• Outsourced & managed procurement solutions
Capital Project Procurement Solutions• CAPEX procurement project management• Sourcing, procurement & transaction management• Quality management (QA/QC), inspection, testing &
expediting• Project logistics management
Professional Resourcing• Skills & resource gap analysis• Talent & skills identification• Placement & on-boarding management• Ongoing management and interaction
Global Procurement & Supply
Integrated market expansion solutions for China and selected
key markets: we bring consumer goods, commodities & raw
materials, and technology & services to market, build brand
reputation and accelerate sales & market share
Market Insight, Planning & Decision Support• Market scoping & competitive landscape• Channels to market & key stakeholder identification• Commercial & regulatory environment• Partner due diligence
Marketing & Brand Management• Marketing strategy, planning & communications• Brand activation & management• Digital & social marketing services• Product / service education & representation
Business Development & Sales• Client / partner engagement strategy• Route-to-market & channel partner management• Sales management (lead development to PO)• E-commerce solution
On-the-ground Support & Execution• Export/import formalities• Warehousing & transportation• Asia team recruitment & training• 3PSP management (legal, registration agency, etc.)
Market Expansion
Trusted niche cross-border strategic and transactionadvice, with implementation support to underpingrowth and performance
Strategic AdvisoryStrategy formulation & implementation support todrive decision making, growth & profitability
• Research & analytics• Strategy formulation• Strategy implementation
Transaction AdvisoryIndependent corporate finance advisory& transaction origination services
• Origination services• Financial advisory• Due diligence• Transaction project management
Corporate Advisory
International Inbound
Supply Chain Solved
International Outbound
Supply Chain Solved
International Market
Complexities Solved
Global Markets. Connected
Axis Group Global Procurement & Supply is one of our three core businesses
15
SupplyWe are your
supplier
ServicesWe optimise
your procurement
ProjectsWe support
your projects
PeopleWe strengthen
your team
Axis Group Global Procurement & Supply – Supply, Services, Projects, People
Comprehensive Global Procurement & Supply
Solutions
Comprehensive global procurement & supply solutions that drive down cost,
assure quality, expedite schedules, mitigate risk and ensure ESG
compliance
• Global Sourcing• International logistics• Supply to site / distribution/ delivery
• Procurement advisory• Strategic sourcing• Transactional procurement• Outsourced & managed procurement
solutions
• CAPEX procurement project management
• Sourcing, procurement & transaction management
• Quality management (QA/QC), inspection, testing & expediting
• Project logistics management
• Skills & resource gap analysis• Talent & skills identification• Placement & on-boarding
management• Ongoing management and
interaction
Integrated Sourcing & Supply
Global Procurement
Services
Capital Project Procurement
Solutions
1
2
3
Professional Resourcing
4
31
42
Cost-downQuality
Managed
Risks
Managed
Schedule
Expedited
ESG
Compliance
16
Multi-disciplinary
Consulting
Implementation
Outsourcing
Service
Provider
Supplier
Logistics & Supply
Chain
Technical & Quality
Management
Managing Quality
Excellence
Methodology-based
Cost Reduction
Supplier Database
Managing Standards
Managing IP
Negotiation Industry & Category Coverage
Capex, Opex& MRO
Organisation
8000+Supplier database
Experience
5000+Sourcing & procurement projects completed
1800+Pre-qualified suppliers
10-30%Average savings (range of 5-70%)
800-2000%Typical ROI
USD 21bnSpend analysed
One of the world’s largest integrated market access & logistics companies operating within
26 countries with 25,000 employees
An Imperial Company
Global Procurement & Supply Sourcing Hubs
Global Reach
Johannesburg
Singapore
Shanghai
Mumbai
Dubai
Bangkok
BeijingDelhi
Perth
Denver
Integrated Solutions
Analyse SourceQuality Manage
LogisticsManagement
Supply
Our solutions are truly integrated and span the entire end-to-end international value chain
from source to final supply
3500+Clients served
Logistics Capability
Comprehensive Global Procurement & Supply
Solutions
Comprehensive global procurement & supply solutions that drive down cost,
assure quality, expedite schedules, mitigate risk and ensure ESG
compliance
Integrated Sourcing & Supply
Global Procurement
Services
Capital Project Procurement
Solutions
1
2
3
Professional Resourcing
4
• Local Knowledgeo Incorporate Local Knowledge
and Supply Market Intelligence into your low-cost country sourcing strategy to reduce Risk
• Speed to Value o Rebalance your overseas
sourcing risk profile with New Savings bringing genuine Speed to Value from harnessing Local Knowledge
• Remote Managemento Allows you hands-off Remote
Management of supplier appraisal, engagement and selection – and complex execution in remote low-cost country sourcing destinations
Cost-downQuality
Managed
Risks
Managed
Schedule
Expedited
ESG
Compliance
Global Procurement & Supply. Solved
17
We are your supplier - Our Integrated Sourcing & Supply offering in more detail
Global Sourcing1
• Global supply chain strategic intelligence
• Strategic sourcing
• Supplier identification, selection and management
• Contract terms management
• Demand and specification management
• Quality management and expediting
• Sourcing support
• Supplier relationship management
• Project and risk management
International Logistics2Supply to Site / Delivery / Distribution
3
• Order delivery and processing
• Kitting – product assembly, repackaging, etc. within origin country
• Supply management and warehousing
• Control towers overseeing integrated supply networks
• Inventory management
• Logistics, supply chain and 3rd party management
• Transportation, warehousing
• Warehouse management and control
• Customs clearance management
• Supply chain finance
Provide integrated buying solutions for a variety of
different industries
Improve logistics management across value
chains
Manage & identify qualified global suppliers from best
cost countries
Comprehensive Solutions
18
We optimise your procurement - Our Global Procurement Services offering in more detail
Procurement Advisory
• BCC opportunity assessment (savings potential diagnostic)
• Market intelligence and supply market analysis
• Benchmarking analysis
• Procurement maturity assessment
• Improve procurement processes
• Enhance procurement capabilities
• Procurement process tender support
• Supply chain risk assessment
Strategic SourcingTransactional Procurement
3
• Contract management
• Supplier relationship management
• Supplier risk management
• Site visits and supplier audits (commercial, technical, CSR and HSE)
• Quality management, QA/QC and expediting
• Installation and commissioning support
• Logistics management
• After-sales service support
• Supply chain risk mitigation
Outsourced & managed procurement solutions
4
• Strategic sourcing and transactional procurement (Outsourced International Procurement Office)
• Productisation (i.e. cost reduction programmes)
• CAPEX project procurement
• Global sourcing strategy formulation
• Category strategy development
• Supplier identification
• Supplier evaluation
• Supplier pre-qualification
• RFx process management
• Supply chain and logistics mapping
• Negotiation and contracting
• Rapid sourcing programmes
• Buying trips
• Supply chain risk mitigation
Realise cost savings, on-time delivery & ensuring
quality
Benefit from BCC sourcing with minimal
upfront investment
Enhance procurement capability & performance
1 2
Comprehensive Solutions
19
Capex Procurement Project Management
• Project planning
• Project & risk management
• Global supply chain strategic intelligence
• Supply market analysis
• Contracting strategy
• Supplier performance evaluation process design
• Demand & specification management
• Risk & schedule management
Sourcing, Procurement & Transaction Management
Quality Management (QA/QC), Inspecting, Testing & Expediting
3
• Sample collection & testing
• Site visits & supplier audits (commercial, technical, CSR and HSE)
• Quality management & expediting; Fabrication quality assurance & control
• Inspection & testing
• 3rd Party, subcontractor & sub-supplier management
• Installation & commissioning support
• Warranty claims
• After-sales service support
Project Logistics Management
4
• Control towers overseeing project supply networks
• Logistics, supply chain & 3rd party management
• International freight management & customs clearance
• Transportation, warehouse management & control
• Inventory management
• Supply chain finance
• Document preparation
• Supplier identification, selection & management
• Negotiations; Sourcing optimization
• Contract terms management
• Supplier relationship management
• Operational purchasing management
• Supplier financial compliance monitoring
• Accounts payable processing
1 2
Provide strategic solutions to unique project
requirements
Improve project management across the
value chain
Effectively manage the project from sourcing to
logistics process
We support your projects - Our Capital Project Procurement Solutions offering in more detail
Comprehensive Solutions
20
We strengthen your team - Our Professional Resourcing offering in more detail
Comprehensive Solutions
Skills & Resource Gap Analysis
Talent & Skills Identification
Placement & Onboarding Management
3Ongoing Management& Interaction
41 2
• Client needs analysis
• Essential skills identification
• Resource gap analysis
• Resourcing strategy development
• Job description development (as needed)
• Selection and formal offer
• Placement and onboarding facilitation management
• Flexibility
• Payroll management
• Management of compliance and administrative issues
• Continuous support and management throughout the engagement process
• Strong relationship building to ensure continuity
• Identification, filtering and preliminary engagement of potential candidates
• Expectation and role clarification
• Compatibility assessment
• Candidate shortlisting for ‘best hire’ potential
• Client interviews
• Quick and effective turn-around time
Locate ‘gap’ areas & develop strategies to fulfill
needs
Achieve a shortlist of ‘best hire’ candidates
Place professional talent in key roles
Management & support throughout the end-to-
end process
21
Experience
Recognised as a leading, independent global procurement service provider for the mining and resources, industrial andengineering sectors
Established sourcing capabilities for a wide range of categories: chemicals, packaging, healthcare, FMCG and general merchandise
Achieved average savings of approximately 10%-30% for customers (within a range of 5-70% savings)
Managed sourcing transactions of almost USD 2 bn and supported special project procurement of USD 2 bn for clients over the past five years
Additionally, performed sourcing enquiries for clients targeting China/Asia in excess of USD 4 bn
Experience in transacting more than 80 product categories across CAPEX projects and CAPEX replenishment to strategic raw materials, production consumables and OPEX/MRO supply
Database of more than 8,000 identified suppliers, with more than 1,800 pre-qualified
Sophisticated methodologies, systems, processes and practices in place with a 18-year experience curve
Axis Group Global Procurement & Supply has a significant experience curve
Client Benefits
Cost-down
Quality
Managed
Schedule Expedited
Risks
Managed
22
Johannesburg
Singapore
Shanghai
Mumbai
Dubai
Bangkok
Beijing
Delhi
Perth
Denver
Axis Group Global Procurement & Supply Sourcing Hubs
• Executed work on 5 continents: Africa, Asia, Australia, Europe and the Americas
• Operations in Africa, South East Asia, North East Asia, South Asia, Australia, Americas and the Middle East
• Skill across sourcing hubs include: Analytical, Commercial, Technical, Quality, Logistics and Project Management disciplines
North East Asia coverage via offices in Beijing and Shanghai
Middle East and Africa coverage via offices in Dubai and Johannesburg
South Asia coverage via offices in Delhi and Mumbai
India Operations Support Platform: • Sourcing & procurement• Analysis• Spend analytics • Internal process support
China Operations Support Platform: • Analysis• Spend analytics • Internal processes• Global project management• Procurement advisory• Consolidation warehousing• Freight forwarding license
Americas coverage via liaison office in Denver
South East Asia and Australasia coverage via offices in Bangkok, Singapore & Perth
Axis Group delivers global procurement & supply solutions via strategically located international sourcing hubs
Global Reach
23
Axis Group Global Procurement & Supply: we support our clients’ complex end-to-end supply chain needs
Where we play
Cost Reduction Diagnostics
Supply Country Selection
Market Studies
Spend Analysis
Price Benchmark
Supplier Shortlisting
Technical Evaluation
Negotiating
& Contracting
RFx
Plant
Audit
Sample Arrangement
Audits/CSR/ Modern Slavery
Buying Trips
Quality Management
3rd Party Mgmt.
Inspection Expediting
QA/QC Buy & SellExports / Imports
Consolidation / Deconsolidation
Inventory Mgmt.
Delivery / Distribution
Professional Resourcing
Global Supply Markets
• China & Northeast Asia
• India & South Asia• Thailand & South East
Asia• South Africa & Africa• Turkey, Poland &
Eastern Europe• Mexico & Latin
America
Client WarehousesDe-consolidation
Bonded
Warehouse
End User
Port/Airport
Bonded
Warehouse
International Freight
Bonded
Warehouse Port/AirportPort/Airport
Raw Materials
Packaging
Air & ocean;sourcing &
procurement
ComponentsSupplier /
Manufacturer ConsolidationQuality
Management
Capital Equipment
Finished Product
End-to-End Integrated SolutionsAxis Group Customer
What we doEnd-to-End Integrated Solutions
Integrated Solutions
24
Multi-disciplinary
Axis Group Global Procurement & Supply utilises a multi-disciplinary approach to bring together a unique value proposition
Consulting
Implementation
Outsourcing
Service Provider
Supplier
• Integrated international trading capabilities that simplify our clients’ worlds – we supply you
• We provide a professional services experience to support all your procurement activities & needs -from analytics to sourcing events, transactional procurement, quality, logistics & supplier management
• An outsourcing model that gives clients more options, control & flexibility
• Operational & implementation capacity that enables solid execution: on-the-ground, end-to-end
• Advisory & consulting acumen to support strategic intelligence, decision support, change & transformation
• Deep logistics & supply chain capabilities that connect worlds
• Deep capabilities and rich experience in technical & quality management
Our Procurement & Supply business is strategically positioned to bring together a unique value proposition –an amalgamation of key strengths & capabilities:
Flexible Model -Axis Group as
supplier or service partner
Flexible Engagement –
Plan, Do, Collabo-rate > Strategic,
Practical, Extended Partnership
Logistics &
Supply Chain
Technical & Quality
Management
Extended SpecialisedCapabilities
25
Why clients work with us? Excellence, Trust & Performance
Methodology-based
18 years of continuous improvement; best-in-
class
Supplier Database
Over 8,000 suppliers in DB; over 1,800 pre-qualified; over 5,000
projects
Managing Quality
In-house technical team and experienced in 3rd
party management; project managing
leading quality and inspection firms
Managing Intellectual Property
Risk management around IP
protection and transgression
Capex, Opex & MRO
Experienced in large complex Capex project procurement, Capex replenishment and
Opex & MRO
Organisation
Management layer line-of-sight with analytical, commercial, technical
and logistics experts to ensure sound project /
risk & relationship mgmt.
Cost Reduction
Average realized savings of 10-30%; adjusted for risk mitigation cost and
warranty claims
Industry & Category Coverage
Clear sector expertise, i.e. mining; steel;
industrial; chemicals; packaging; healthcare.
Experience in Opex/MRO, components, finished products and services
Managing Standards
Experienced in managing standards and conversion
issues
Negotiation
Experts in negotiations having negotiated over USD 2.5bn in contracts
Excellence
Logistics Capability
Integrated (end-to-end) logistics solutions (including inland
transportation and international freight arrangement and
management)
26
Methodology-based
ExtensiveOccasional
Field Work:
Global Supply Market Assessment
Multi-Country / Cluster Focus
BCC Country / Cluster Selection
• Assessment of long-term indicators such as−Macro-economy −Market size (production, growth)
−Trade balance (growth, destination, etc.)
−Trade incentives/barriers (tariffs, rebates,
−Others
• High-level analysis on the basis of −Manufacturing competitiveness
−Logistics infrastructure
− Issues and tends, and risk assessment
−Others
• Evaluation of selected markets on the basis of −Supplier availability−Supplier capability (standards, product range, etc.)
−Supplier experience (brand, exports)
−High-level price assessment
Country / Cluster 1
Country / Cluster 2
Country / Cluster 3
Phase 1: Country Analysis
Universe list of 200 countries Shortlist of 10-15 markets Shortlist of 3-5 markets
Phase 1: Country Analysis
27ExtensiveOccasional
Field Work:
Universe list of 50 countries Shortlist of 10-15 markets Shortlist of 5 markets
Op
erati
on
al P
ro
cu
rem
en
t P
ro
cess
An
aly
sis
Supplier Analysis
1 2 3 4
Understanding product
specifications
Supplier identification
and universe list
compilation
Supplier evaluation
and long list
RFI, supplier
pre-qualification
and shortlist
Supplier Engagement
5 6 7 8 9
RFQ, RFP and
RFT process
Site visit and
supplier auditContracting
Commercial and
technical evaluationNegotiation
Supplier Process Management10 11 12 13 14
After sales
service support
Contract
administration
Quality
Management (QA/QC)
and expediting
Logistics
coordination
Installation and
commissioning
support
Procurement & Supply1 2 3 4
Procurement Logistics Distribution Supply
Bu
y &
Sell
Phase 2: Procurement Methodology
Phase 2: Procurement Methodology
Methodology-based
28
Supplier Analysis Supplier EngagementSupplier Process
Management
1. Understanding product specifications to establish the feasibility and potential of the undertaking, culminating in initial cost models
and target lists
2. Supplier identification and universe list compilation to select optimal project methodology and compile universe list of all potential
suppliers
3. Supplier evaluation and long list to critically assess the strengths and weaknesses of suppliers with the application of high-level
filters, especially verifying their export performance and track record, product fit and quality standards, among other criteria
4. RFI, supplier pre-qualification and shortlist to test identified suppliers by means of detailed questionnaires and probing site visits,
which are conducted in collaboration with clients
Axis Group Service Delivery Platform in detail (I)
Supplier Analysis
Methodology-based
29
Supplier Analysis Supplier EngagementSupplier Process
Management
Axis Group Service Delivery Platform in detail (II)
Supplier Engagement
Methodology-based
5. RFQ, RFP and RFT process to conduct a competitive bidding process to obtain quotations while controlling the quality of deliverables
6. Site visit and supplier audit to inspect the ‘standard operating procedures’ of manufacturing sites based on technical specifications, by
expedited sample testing and by ensuring compliance with international quality standards; areas of specific interest during supplier
audits are commercial, technical, CSR and HSE conditions
7. Commercial and technical evaluation to ensure that the offer and specifications completely correspond with client needs
8. Negotiation to attain the best offer from the supplier
9. Contracting to frame contract parameters, while identifying potential risks and external factors, and to help expedite the signing process
30
10. Contract administration to assist the client with purchase orders, and to maintain effective communication between all parties while
regularly checking manufacturing progress and monitoring the payment process and transaction flow
11. Quality management (QA/QC) and expediting
• To assign a working group of experienced, in-house quality management specialists
• To conduct quality management to meet client’s specifications and international quality standard requirements (ISO, etc.)
• To identify a suitable service provider as Axis Group that can conduct comprehensive third-party management
12. Logistics coordination to engage either with Axis Group’ own service partners with whom we have established relationships and are able to
obtain favourable rates, or to manage the client’s shipping agencies
13. Installation and commissioning support to ensure effective equipment installation by having specialised staff members monitoring on-site
14. After sales service supports clients’ needs with regard to resolving after sales issues on quality, logistics, contracting, etc.
Supplier Analysis Supplier EngagementSupplier Process
Management
Axis Group Service Delivery Platform in detail (III)
Supplier Process Management
Methodology-based
31
We have a robust cost reduction methodology focused on analysis and realisation
Note*: Saving percentages are indicative only
25+%* savingsHigh Impact - Low
Risk
Wave 1
Wave 2
Wave 3
15 – 25%* savingsMedium Impact -
Medium Risk
5 – 5%* savingsMore Challenging
+
-
++
+++
-Savings
Risk
Savings RealisationSavings Opportunity Assessment & Diagnostic
Steps Objective Criteria Deliverables
• Define and prioritise categories and commodities leveraging existing spend information
• Category / commodities
• Volumes / values
• Suppliers• Plants• Others
• Pareto analysis and category ranking
• Determine what is the China sourcing potential for prioritised product categories
External to the firm:• Export
performance• Supply market
factors• Costs factors• AGI experience
• China competitiveness analysis
• Category prioritization
• Prioritise further product categories based on the pros and cons for a shift to China
Internal to the firm:• Product
requirements• Supplier factors• Stakeholders
analysis
• Category focused workshops and category profiles
• Category prioritization
• Final selection of commodities based on estimated savings and realization potential –quick wins
• Cost savings potential
• Easiness / realization
• Savings –realization matrix
• Final commodity selection
Spend Analysis
Category Analysis 1(BCC Sourcing
Potential)
Category Analysis 2 (Internal Readiness)
Commodity Selection (Cost Savings
Estimation)
High Level Project Methodology
Supplier Process
Management
Supplier Analysis
Supplier Engagement
Cost Reduction
32
Prequalified Suppliers Database (I): Axis Group follows a robust and customisedmethodology in selecting appropriate and reliable suppliers
Expression of Interest
Request for Proposal
Long-Term Contract
Database Management
Suppliers qualified for RFP based on:
• Capacity
• Techniques
• Manufacturing practices
• Track records
Suppliers approved to supply based on:
• Testing of samples
• Offers
• Meeting standards & customer specifications
Ongoing supplier management includes:
• Meeting compliance
• Measuring performance
• Ongoing sample testing
Database + Research
Methodology/Selection Procedure
Supplier Database
33
Axis Group Supplier Database Overview
Prequalified Suppliers Database: Axis Group maintains and updates a database of pre-qualified suppliers across various categories and products
Mining Related
80%
Others
20%
Breakdown of Axis Group’s SupplierDatabase
8,000 +SuppliersIdentified
3,000+Shortlisted
1,800+Pre-
Qualified
Supplier Database
34
Our Approach to Quality Management
Quality Management: Axis Group takes a holistic approach to quality management - to deliver on clients’ expectations and specifications on
Procurement Manufacturing Service
Axis Group Quality Management
Supplier Quality
• Supplier audit (commercial, technical, CSR and HSE)
• Failure analysis
• Supplier corrective measures
• Supplier database management
Manufacturing Quality
• Due diligence / inspections
• CSR and HSE inspections
• Standards testing
• Equipment calibration
• Documentation control
• Conformance testing
Customer Service Quality
• Client issues & complaints management
• Client needs and specifications management
• Documentation control
Internal + 3rd Party Management
Managing Quality
35
Axis Group Standards Management Flow
Standards Management: Axis Group leverages experience and expertise in managing standards issues across the entire engagement process
Customer Specification
Analysis
• Determine and verify the clients’ needs and specifications
• Check for the required standards to meet the clients’ specifications i.e. ISO
• Establish relevant standards
Potential SupplierIdentification
• Locate and shortlist potential suppliers utilising Axis Group supplier database and experience
• Engage with the customer and discuss the product, specifications, and standards
• Check and confirm standards adherence
Standard Testing&
Confirmation
• Sample test for standard requirements
• If the test is successful, engage in further discussion for procurement procedure and in negotiations
• If the test is unsuccessful, go back to Potential Supplier Identification and repeat process
Managing Standards
36
Intellectual Property Management: Axis Group provides services and solutions in a multi-faceted manner to protect clients’ assets including intellectual property
IP Risks Analysis• Evaluate potential threats to the intellectual property of the client
• Analyse to mitigate the risks involving intellectual property
Reliable CounterpartyIdentification
• Identify and engage with reliable counterparties based on Axis Group experience
• Discuss and address issues involving intellectual property protection measures
Overall Risk Management
• Deal with the top law firms in dealing with intellectual property issues
• Adopt thorough documentation controls
Monitoring• Keep track of potential threats to intellectual properties to protect the client
• Include intellectual property controls in evaluating counterparties
Our Approach to Intellectual Property Management
Managing IP
37
Negotiation: Axis Group’s expertise in negotiation enables the establishment of efficient and value-adding strategic commercial solutions
• Provide the benefits of a best-in-class negotiation and procurement process with strict
process discipline
• Negotiate towards the best prices, payment terms, discounts, price protection clauses
and other value-adds available in today’s market
• Strive for a balance between the lowest price with the specifications matched for the
client and vendor needs such as supply chain transparency, improved forecast and price
reliability and rewards for the value delivered
• Leading Supplier Negotiations
• Strategic Sourcing Processes
• Improvement of Supplier Terms and Conditions
• Global Pricing Visibility
• Pricing and Volume Targets
Key Deliverables
Our Approach to Negotiation
Negotiation
38
Axis Group provides customised logistics solutions to drive down cost and optimise value, leveraging Imperial’s capabilities and footprint
“Integrate, optimise and synchronize activities of various parties/activities in the value chain”
Single point of contact
Improved expediting
Improved visibility
Leveraging industry best practice via Imperial and
partner networks
Centralisedprocurement and
supply chain execution enabling
collaboration between all parties
involved
Logistics Capability
Logistics Capabilities
39
Axis Group works across industries but focuses where our capabilities add value
Mining
Energy
Construction
Metallurgy Healthcare
Packaging
General Merchandise/
FMCG
Engineering
Oil & Gas
HME
Manufacturing
Chemicals
Industry & Category Coverage
40
Industrial, Construction & Manufacturing Mining & Energy
Axis Group has significant experience in sourcing more than 80 product categories from China and other ‘best-cost’ countries
Mining Operations
• Electric rope shovel
• Load haul dump (LHD)
•Underground roof support
• Base plate (Dragline)
• Truck cylinder
•Mechanical components
•GET
•OTR & general tyre
•Drill bit
•Drilling rod
•Drilling boots
• Rock drill
• Piping
•Drilling machine
• Bulldozer
•Grader
•Wheel loader
• Axial ventilator/fan
• Filter element
• V-belts
•Others
Construction Materials & Equipment
• Cement
• Steel and structural products
• Construction tools
•Machinery
• Building materials
• Tanks, vessels & internals
• Rail equipment & components
• Electrical cables & wires
Manufacturing
•Gears box
•Shafts
•Bolt Nut Plate
•Pig Iron Roller
•Heavy Machinery Parts
•Spare parts
•Hydraulic equipment
•Batteries
•Engines
Materials Handling
• Stacker reclaimer
• Conveyor belt
• Pulley
•Wagon tippler
•Mil liner
• Bell & Hopper
• Rollers
• Pipes
•Others
Processing
• Crusher / Breaker
•Grinding mill
• Thickener / Mixture
• Filter press
• Cyclone
• Furnace
• Electrodes
• Slag pot / Ladle
•Heat exchanger
• Cooler
• Cooling tower
• Screener
• Flotation equipment
• Valve
• Pump
•Grinding rod
•Oxygen lance
• Refractory brick
• Coal washing machine
•Grinding media
•Grinding rod
•Oxygen lance
• Refractory brick
• Coal washing machine
•Grinding media
•Magnetite / Fesi
• Lime
• Liners
• Steel ball
• Blower
• Air compressor
• Boiler
• Conveyor belt
• Pulley
•Wagon tippler
•Mil liner
•OthersPackaging
• Carton for Food Industry
• Plastic rigid tubes
• Plastic box
• Tin boxes
• Food Jars
• Liquid Paper Board
Chemicals
•Sodium hydro Sulphate
•Amberlite
•Frothers
•Sulphuric acid
•Collector agent
•Additives
•LAB
•Other chemicals
Note: Selected Category Capability
Industry & Category Coverage
41
Product Experience – Selected Examples
See key clients & case studies for more examples
Industry & Category Coverage
Grinding mills Hydraulic excavator Trucks Draglines Cranes Centrifuges
Flotation equipment Magnetic separators Compressors Metal processing machinery & parts
Filters
Piping Wire Gensets Bearings Electric mining shovel
Heating & heatingexchangers
Cables Substations Power tools
Crushers
Ground engagement tools
Transformer
Containers
Kiln shell Magnesium ingots Modularized processingunit
Chemicals Liquid paper board Healthcare products
42
Tendering or Sourcing
Contract Award
Contract Management
StrategicProcurement
Planning
Operation & Maintenance
Complex Capital Project Procurement: Axis Group drives value across the project value chain – for project owners’ teams, PMC’s and EPC/M’s
• Tailored methodology for unique project specifications across categories
• Universe list of suppliers evaluated for each project as per requirements
• Site visits, supplier audits, commercial and technical evaluation result in successful negotiation and contracting with suppliers
• Clearly defined processes for cost escalation estimation, deviation from initial budgets & schedules and claims management
• Assuring accurate total cost of ownership (TCO) is calculated
A dedicated Capital-Project Procurement Partner
Design & Engineering
Construction
Procurement
Cost
Influence
Time (Project Lifecycle)
Axis Group Involved Early for Strategic Suppliers
100%
0%
Planning & Feasibility
Construction Cost
Ability to influence 100%
0%
Startup
• Capex Procurement Project Management
• Sourcing, Procurement & Transaction Management
• Quality Management (QA/QC), Inspecting, Testing & Expediting
• Project Logistics Management
Axis Group Core Project Procurement Solutions
Axis Group Support
Across the Full Capital
Project Procurement
Process
ProcurementRequirement
Definition
BidEvaluation &
Selection
Capex, Opex & MRO
43
Organisation Structure: Axis Group Global Procurement & Supply
Quality, Technical
(QA/QC, Expe-ditors, etc)
CEO
Managing Director
Inspection Engineers
Expeditors
Commercial
Procurement Specialists
Logistics
Logistics Coordinators
Strategy & Analytics
Strategy Consultants
Research Analysts
HR & Administrative
Support
HR Specialists
Admin staff
Project Administrative Support
Finance
Financial Specialists
Accountants
BCC Analysts
Gro
up
Man
ag
em
en
tP
ro
ject
Delivery
UAE,
Chin
a,
India
, Sin
gapore
, Thailand,
Austr
alia,
South
Afr
ica
Senior Engineers
GM Global Procurement &
Supply
Spend Analytics Partner
Specialist QA/QC & Inspection JV
Strategic Logistics & SC Partner
Project Management
Core Procurement Team
Support Functions
Partners
BCC Procurement Specialists
Global Sourcing Hubs
Beijing
Knowledge Management
Shanghai
Singapore
Bangkok
Delhi
Mumbai
Perth
Johannesburg
Denver
Dubai
Organisation
Contract Specialists
Leading Oil and Gas Exploration & Production Company
Provided comprehensive procurement solutions including identification, evaluation and selection of key Chinese manufacturers for OFSP Modules, including undersea suction piles and complex equipment
1. Axis Group International - Overview
2. Global Procurement & Supply
3. Key Clients & Case Studies
4. Key People
5. Thought Leadership
Agenda
46
Selected Clients across our businesses and sectors
Global Procurement & Supply Market Expansion Corporate Advisory
Mining & Resources
Construction & Engineering
Manufacturing
Other
47
Selected Clients around the world
Solid China and Asia position:• Substantial networks/relationships• Strong brand equity• Systematic methodologies and approach• Extensive supplier database and
supplier relationships• Category management knowledge• Mining, energy, EPC, industrial, steel,
chemical, packaging, healthcare category knowledge
Deep brand recognition and client community formation in core markets
Significant scope in new markets for development
• We have served small-med-large size companies, that are local, regional and global
• Our primary focus is mid-market or regional players –listed or large privately held enterprises
• Secondary - global players where Axis Group can address opportunity
• We started in SA and China, expanded to Asia, Australia, then Latin America and now the US/EU
48
Selected Procurement Clients Africa
Mining & resources
Construction & engineering
Manufacturing
Other
R. G. Maintenance
Services
49
Mining & resources
Construction & engineering
Manufacturing
Other
Selected Procurement Clients Australia and China / Asia
Australia China / Asia
50
Mining & resources
Construction & engineering
Manufacturing
Other
Latin America Other Regions
Selected Procurement Clients Latin America and Other Regions
51
Loaders Hydraulic excavator Trucks Draglines Cranes Centrifuges
Flotation equipment Magnetic separators Compressors Metal processing machinery & parts
Filters
Piping Wire Fittings Bearings Cement
Heating & heatingexchangers
Cables Substations Power tools
Crushers
Ground engagement tools
Transformer
Containers
Product Experience Examples (I)
52
Product Experience Examples (II)
Manufactured trailers
Grinding mills Electric mining shovelGensets
Substations
Gensets
53
Girth gear
Kiln support roller shaft
Kiln shell
Mill headKiln shell
Support roller
Product Experience Examples (III)
54
Product Experience Examples (IV)
Superheaters
Grinding media
Boiler shellsThickeners
Pumps Magnesium ingots
55
Product Experience Examples (V)
Modularized processing unitSuction piles for FPSO under assembly
Interpass absorption
56
Product Experience Examples (VI)
Round bars Flat barsHollow bars
Pipes Angle steel Rails
57
Product Experience Examples (VII)
Caps Shoe coversAbdominal swab
Diapers GlovesDisposable underpad
58
Product Experience Examples (VIII)
HDPE closure Liquid paper board Film
Soda ashBread bag PET
59
Product Experience Examples (IX)
Cookware Apparel Small domestic appliances
PPE Batteries Lamps
Largest Packaging Company in Africa
Providing ongoing comprehensive procurement solutions including supplier database and tender support - identification, evaluation, selection and order placement with Chinese & global suppliers for equipment, finished and semi-finished products (across glass, metal, paper and plastic categories)
61
Capital Procurement Project
Large Iron Mining Company
Outcomes
• The Client attained a better understanding of the sourcing opportunity in Asia
• The Client was able to identify which product packages are best sourced from which Asian countries
• The Client learned more about the various pitfalls that can happen with Asia procurement and can now plan ahead to avoid them
Organisational Setup
• Axis Group: 1 Project Manager, 2 Project Consultants, 1 Senior Technical Engineer, 1 Senior Project Advisor, 1 Procurement Specialist, as required
• Client: 1 Project Manager, 1 Technical Engineer
Key Risks andIssues Addressed
• Difficulty of getting interviews with project managers that had worked on foreign mining projects with significant Chinese contractor participation that were willingly to talk about their experience
Lessons Learned
• China was the only country that Axis Group identified as being a suitable supplier for all identified packages. The supplier base and scale of Chinese production is unrivalled at the moment
• Japan and South Korea are good for many product packages as they are renowned for their quality. They remain viable sourcing destinations for more complex machinery packages
Procurement Advisory
Type Heavy machinery, steel products and consumables
Services Research and analysis, procurement feasibility assessment, supplier shortlisting
62
International Procurement Office (IPO) 1/2
Large Global Leading Mining Group
Product Category
• High-level spend analysis & 32 categories
• Products present a wide range of technical complexity, from simple chemicals, industrial/production consumables (complicated components), to key production equipment
• Among the 32 categories, simple products accounted for 15%, complex products accounted for 22.5% and the rest (62.5%) were industrial or production consumables
Project Resources
• Axis Group: Project Manager, Procurement Specialist, Procurement Engineers and Procurement Assistant
• Client: Project Manager, Contract Specialists and Site Engineers
Axis Group Capability/Value
• Mature BCC procurement methodology and procedures
• Balanced team structure with analytical, commercial, technical and logistics skillsets
• Category knowledge accumulated for 14 years
• Experience in managing comprehensive projects (multiple categories and stakeholders/countries)
• Multinational culture that mitigates gaps in communication and mindsets between suppliers and clients
Outcomes
• More than 500 BCC suppliers have been approached via RFI/RFQ/RFT
• More than 50 BCC suppliers have been deeply engaged, technical or commercial clarification
• 10 suppliers have been visited by the project team (either by clients together with Axis Group or Axis Group independently)
• 5 Chinese suppliers have received orders or trial orders from client
Type Long-term international procurement office (IPO) for BCC procurement
Services Research and analysis, procurement feasibility assessment, technical clarification,specification development, supplier identification, evaluation & shortlisting, RFQ (issuance, expediting, clarification and analysis), sample arrangement, contract negotiation (payment terms), plant audit and delivery management
IPO
63
International Procurement Office (IPO) 2/2
Large Global Leading Mining Group
Outcomes
• For simple products like chemicals, there is approximately 5 - 10% saving
• For industrial and production consumables, there is approximately 15 - 20 % cost saving
• For complex components and equipment, the cost savings potential is approximately 20 -40%
• For project procurement (Capex), the cost saving will be above 40%
OrganisationalSetup
• After a comprehensive strategic sourcing phase, the project is now gradually moving into a transaction phase, with a large amount of cost saving to be realised in the coming months/year
• 1 order has been delivered to the client; 5 orders are under production; 2 trial orders will be ready for dispatch and 2 orders under final approval process. Samples for testing at authorised lab being couriered
Key Risks andIssues Addressed
• 3 operations (sites) in 3 continents have been actively involved in this BCC sourcing process, and another 3 operations are being encouraged to participate as well
• More product categories will be continuously added to the procurement product list for identification of more cost savings, especially between 2017 and 2020
Type Long-term international procurement office (IPO) for BCC procurement
Services Research and analysis, procurement feasibility assessment, technical clarification, specification development, supplier identification, evaluation & shortlisting, RFQ (issuance, expediting, clarification and analysis), sample arrangement, contract negotiation (payment terms), plant audit and delivery management
IPO
64
Spend Analysis & Procurement of Category Suitable for China Sourcing
Australia–based International Coal Mine
Outcomes
• Based on the spend data provided by client, Axis Group conducted a comprehensive spend category analysis
• Four categories were finally selected, and trial orders have been placed
• More categories are being considered for China sourcing
Organisational Setup
• Axis Group: 1 Senior Manager of the department, 2 Project Managers, 1 Procurement Specialist, 1 Procurement Engineers, 1 Procurement Specialist, 1 Analyst
• Client: 1 Senior Manager, 4 Technical Advisors
Key Risks andIssues Addressed
• Large number of products in spend data; Axis Group selected the categories most suitable for China sourcing
• Client was not able to provide very clear specifications; Axis Group developed and further required clarified specifications
• Insufficient technical information made communication with supplier very difficult; Axis Group managed to collect the relevant information to facilitate successful communication
SupplierCompetitiveness
• Chinese suppliers are technically capable
• Attractive cost saving can be achieved
• Excellent lead time
Type Coal mining equipment (conveyor belt) and consumables
Services Feasibility study, supplier shortlisting & indicative pricing, RFP process, contract negotiation, plant audit trip, supplier registration & facilitation of first order
Strategic Sourcing
65
Strategic Sourcing of Selected Focus Categories/Products
Leading Global Private Coal Company
Categories
• Mining consumables (conveyor belt and idlers, screen decks & panels, drill bits, vibrating screen, slurry pump , flocculant, pipe steel & galvanized, PE pipes)
• OEM parts (excavator buckets, cylinder, track undercarriage parts, hub assembly, rope –dragline, chain UG)
Organisational Setup
• Axis Group: 1 Project Manager, 2 Procurement Engineers, 3 Procurement Specialists, 1 Procurement Analyst
• Client: 1 VP, 1 Procurement Head, 1 Senior Manager, 1 Mechanical Engineer, 3-4 Operation Managers (ad hoc support)
Key Risks andIssues Addressed
• No specs available from client on OEM parts. Axis Group managed to identify suppliers who already developed previous specs
• There was some resistance from the end user for bits. Chinese suppliers sent samples to mine and client is happy after trial
• Client didn’t have the specs for flocculant and the supplier provided samples according to their understanding. Testing on-going
SupplierCompetitiveness
• China is a leading producer and exporter of almost all of the identified products, has a good supplier base
• Client can potentially achieve cost savings of 10-40% compared to local suppliers
• Pricing from China is proving to be less competitive for some products (PE pipes and excavator buckets).
Strategic Sourcing
Type Mining consumables, OEM parts
Services Product research and analysis of existing spend, scoping and selection of focus categories, supplier identification and evaluation, supplier shortlisting, RFQ, negotiation and contract facilitation, China trip, order placement facilitation (on-going project)
66
Sourcing of Conveyor Belt, Idler, Miller Liners & Pipes
Leading Australian Energy Company
Outcomes
• Axis Group shortlisted 9 suppliers for 4 categories. 3 suppliers for 2 categories were selected for trial orders
• Client achieved cost savings for all 4 categories – 2 for direct sourcing, and another 2 for local sourcing with lower costs
• Exploration for more categories is ongoing
Organisational Setup
• Axis Group: 1 Project Manager, 1 Procurement Specialist , 1 Assistant Procurement Specialist; 1 Procurement Engineer
• Client: 1 Project Manager (internal and Axis Group coordination); 3 Senior Managers (plant audit trip and ongoing communications)
Key Risks andIssues Addressed
• Difficulties in matching specific technical requirements due to different standards in Australia and China. Eventually managed to resolve the issue
• Chinese suppliers’ weak handling of English documents was mitigated by document support from Axis Group Suppliers were more aggressive to complete the transaction while client wanted to first complete a comprehensive assessment. Axis Group managed expectations and relationships
SupplierCompetitiveness
• China is a leading producer and exporter of steel products, has a good supplier base with a wide variety of steel products
• Client achieved cost savings of 30-40% compared to local suppliers
Strategic Sourcing
Type Consumables for coal mine and power station (mill liner, pipes, idlers and belts)
Services Fast sourcing, supplier shortlisting & indicative pricing, RFP process, contract negotiation, plant audit trip
67
Sourcing of Conveyor Belting
Leading Gold Producer
Outcomes
• Axis Group shortlisted 3 suppliers capable of complying with client specifications, 2 were selected for trial orders
• Axis Group assisted client with contracting suppliers for trial orders and worked with a 3rd party inspection company to ensure product quality for trial orders
Organisational Setup
• Axis Group: Procurement Specialist and Assistant Procurement Specialist, supported by Procurement Engineer, as needed
• Axis Group coordinated inspection and reports by 3rd party inspector, as well as all technical and commercial inquiries before and during trial orders
Key Risks andIssues Addressed
• Client-appointed 3rd party inspection company was unprofessional; improper inspection led to a conflict situation
• Axis Group was able to resolve the conflict successfully, client was advised to re-test, and the product was finally accepted and the client was satisfied
SupplierCompetitiveness
• China is a leading producer and exporter of belts, has a good supplier base with a wide variety of conveyor belting products
• Client achieved cost savings of 35-50% compared to similar European products
Strategic Sourcing
Type Consumables
Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, and order placement
68
Procurement of Industrial Products
Leading Australian EPC
Outcomes Organisational SetupKey Risks and
Issues AddressedSupplier
Competitiveness
• The procurement transaction was carried out in the 2nd half of 2013 with a PO value of ~AUD 5 million
• China procurement strategy has expanded from only cable to other products such as stacker and structural steel
• Axis Group: 1 Project Manager, 1 Procurement Specialist, 1 Procurement Engineer and 1 Assistant Procurement Specialist
• Client’s Group Procurement Dept. (1 Leading Category Manager and 1 Category Manager) and 2 members from the project team
• Difficulties to match required raw materials and Australian technical standards slowed down the engagement process. Axis Group facilitated a technical clarification session to evaluate the alternatives
• Chinese suppliers’ resistance on agreeing to some commercial terms highlighted the gap between how business works in China and the client’s expectation. Axis Group assisted in reaching a compromise
• Chinese suppliers’ weak handling of English documents was mitigated by document support from Axis Group
• China offers a 10-14% price advantage for cables. The eagerness of developing the overseas market forces Chinese suppliers to commit in quality and prioritise Axis Group’s client as a key customer
Strategic Sourcing
Type Infrastructure: power, instrument, data and OPGW cables
Services Research and analysis, procurement feasibility assessment, estimate potential cost savings, identify specific opportunities, supplier shortlisting, negotiation and contract assistance, plant audit trip
69
Capital Project Procurement
Global Ferroalloy Player
Outcomes
• Order value of over USD XX million, 2 kilns and 2 mills
• Delivery to site 100% complete
• Over 30% savings achieved compared to alternative local offerings
Organisational Setup
• Axis Group: 2 Project Managers (PM, GM), Senior Project Advisor, On-site supervising Engineer, Senior QA inspector, Procurement Specialists as required
• Client’s PM office (no EPCM involvement), Engineering Consultants, Chinese supplier and sub-suppliers, 3rd party inspection company, 3rd party logistics management company
Key Risks andIssues Addressed
• Design and specification changes managed by systematic review meetings and document controls
• Poor supplier documentation management / control system –Axis Group assisted in improving the system
• Suppliers lack experience of DDU delivery – Axis Group put together a 3rd party solution
• Quality and scheduling risks mitigated by shop floor supervision
SupplierCompetitiveness
• Chinese suppliers offer 20-35% cost savings but hands-on quality management and expediting is a must
• Good OEM supply base for international vendors, excellent facilities and good design capabilities available
• Short lead-time
Transactional Procurement
Type Heavy rotating equipment, structural steel, and electrical and other capital equipment packages
Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, supplier and third party management, QA/QC, expediting and logistics arrangements
70
Sourcing of Pulley and Roller for Conveyor Equipment
Leading Australian Mining Company
Outcomes
• Axis Group shortlisted 4 suppliers for pulleys and rollers, 1 supplier for rubber linings
• Client achieved cost savings for the pulleys and rollers via direct sourcing
• Assist client in sourcing approximately 25 orders consisting of more than 60 pulleys and rollers
Organisational Setup
• Axis Group: 1 Project Manager, 1 Procurement Specialist, 1 Assistant Procurement Specialist, 1 Procurement Engineer
• Client: 1 Project Manager (for internal and Axis Group coordination), 1 Senior Engineer
Key Risks andIssues Addressed
• Material standards required by client differed from Chinese standards, Axis Group identified the deviations and proposed suitable equivalent standards
• Quality levels of the pulley and roller were initially not consistent, but through joint effort from Axis Group and supplier, the quality level from the selected suppliers was stabilised at a consistently high level
SupplierCompetitiveness
• China is a leading producer and exporter of pulley and rollers, has a good supply base
• Client achieved cost savings of 20-30% compared with local suppliers
Transactional Procurement
Type Pulley & Roller
Services Shortlist suppliers, technical clarification, contract negotiation, quality management and progress expediting
71
Procurement of Plant Structural Steel
Global Diversified Mining Company
Outcomes
• Order value of over USD XX million: over 7,500 tons of structural steel and platework
• Delivery to site 100% complete
• Very high levels of client satisfaction on quality
Organisational Setup
• Axis Group: 2 Project Managers (PM, GM), Senior Project Advisor, On-site supervising Engineer, Senior QA Inspector, Procurement Specialists as required
• Client’s PM office (no EPCM involvement), Engineering Consultants, Chinese supplier and sub-suppliers, 3rd party inspection company, 3rd party logistics management company
Key Risks andIssues Addressed
• Issues and risks during conversion from South African to Chinese standards; required additional involvement of international engineering consultants
• Suppliers lack experience of DDU delivery – Axis Group put together a 3rd party solution
SupplierCompetitiveness
• Good availability of qualified suppliers
• Good production facilities and design capability
• Generally 10-30% savings relative to South African prices can be achieved
• Excellent delivery time and quality is available in China
Transactional Procurement
Type Plant structural steel, platework, and piping
Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, re-design, negotiation and contract assistance, supplier and third-party management, QA/QC and expediting
72
Procurement of Floating Production Storage and Offloading (FPSO) Components
Leading International Construction Company
Outcomes
• Axis Group shortlisted 4 candidates for shop audit
• Led shop audits and recommended the most suitable supplier for this project
• Supplied 1,000MT steel plates in 60 days and saved the project schedule around 2 months
• Managed project phase I and phase II, supplying nine suction piles in 10 months, hence saving the project schedule around 3 months and provided convenience for site installation
Organisational Setup
• Axis Group: 1 Project Manager in charge of both technical and commercial, 1 full-time Quality Representative at supplier’s workshop
• Sub-contractor: 1 Contract Service Manager, 1 Quality Manager and 1 Contract Manager
• General Contractor: 1 Construction Manager, 1 Project Engineer
Key Risks andIssues Addressed
• Difficulties in coordination among raw material supplier, suction piles fabricators, certifying organization and client
• During the shop detailing process, technical information (GA drawings) provided by client was not very clear, Axis Group assisted the fabricator to clarify the technical issues
• Axis Group helped supplier understand DNV regulations and standards
• Axis Group helped the fabricator to optimize the processes and expedite the progress
SupplierCompetitiveness
• Good availability of qualified offshore engineering fabricators
• Good production facilities
• Generally 25-35% savings relative to South African prices can be achieved for the final products
• Excellent delivery time and quality of the final products
Transactional Procurement
Type Suction piles fabricated as per DNV.GL standard (offshore oil & gas components)
Services Supplier ranking & shortlisting, technical clarification, contract execution, QA/QC management, expediting, logistics coordination & third-party management
73
Procurement of Power Transformers and Related Equipment
Leading EPC Company in the Infrastructure and Power Sectors
Outcomes
• Shortlisted 3 suppliers, detailed negotiations conducted with 2 suppliers, both chosen for order placement
• First orders placed for 2 sets of equipment: 150 MVA power transformer and 120kV equipment (isolator, current transformer, circuit breaker, etc.)
Organisational Setup
• Axis Group: Procurement Specialist and Engineer; assistance from GM
• End user - national electric grid; final client – copper mining company
• Technical assistance provided by client (trading company)
Key Risks andIssues Addressed
• Technical queries during the equipment design phase required heavy coordination and strict communication protocols / document control
• Quality control is required by client and will be performed by Axis Group with assistance from 3rd party inspection companies as required
SupplierCompetitiveness
• Chinese suppliers are very competitive on price and technology
• Modern sophisticated production facilities and R&D centers
• Exports are becoming increasingly important to Chinese suppliers
Transactional Procurement
Type Electrical equipment
Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, order management, QA/QC and expediting
74
Procurement of Steel and Pipes (ERW, SSAW, Seamless)
Leading manufacturer and merchant of steel, tubes and pipes
Outcomes
• Axis Group shortlisted 3 suppliers; client impressed by facilities and product quality and has been placing orders with these suppliers since 2010
• Client achieving sizeable cost savings versus international suppliers (incl. other BCC suppliers) in a very competitive market
Organisational Setup
• Axis Group : Procurement Specialist and Assistant Procurement Specialist
• Client: Commercial personnel for sourcing trip and order placement; involve 3rd party inspection company as needed
Key Risks andIssues Addressed
• Longer pipes have to be shipped by break bulk rather than containerised, orders have to be carefully managed to adhere to the shipping schedule
SupplierCompetitiveness
• A few, large suppliers in China have achieved European levels of quality and can provide competitive pricing and delivery times
Outsourced & Managed Procurement Services
Type Commodities
Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, order management, QA/QC and expediting
75
CSR Audit of Inflight Product Manufacturers
Leading International Airline
Outcomes
• Suppliers found to pass the social compliance and quality assurance audits with minor non-compliance issues
• No child labour, forced labour, association or discrimination identified in the audited factories
• Client to continue engagement with suppliers on minor instances of social non-compliance
Organisational Setup
• Axis Group: 1 Project Manager and 1 Procurement Specialist
• Client’s Procurement Department: 2 members from the project team
• Third-party CSR auditor: 1 specialist
Key Risks andIssues Addressed
• To avoid brand damage and unethical procurement, Axis Group managed a quality assurance and social compliance audit
• Axis Group identified areas for the client’s suppliers to improve on health and safety policies
Lessons Learned
• East Asian suppliers are the most competitive in terms of quality and pricing for these products
• Necessary to follow up on suppliers’ quality and social responsibility situation periodically as the factory environment changes frequently
Procurement Advisory
Type Inflight products
Services Service provider identification, CSR audit trip management, Quality Assurance assessments
76
Integrated Global Sourcing Strategy Formulation – Analysis of Current Situation, Best practices & Identification of Key Areas of Intervention
Outcomes
• The Client attained an understanding of the sourcing opportunity in Asia
• The Client was able to identify which Asian countries provided the most competitive products due to local FOB costs and duties
• The Client learned more about the various pitfalls that can occur during procurement in Asia and can now plan ahead to avoid them
Organisational Setup
• Axis Group: 1 Project Director, 1 Project Manager, 1 Lead Consultant, 2 Project Consultants, 2 Analysts, 1 Procurement Specialist, as required
• Client: 1 Commercial Project Manager (buyer) and 1 Technical Manager (quality control); final findings presented to the executive committee
Key Risks andIssues Addressed
• The lack of a centralised and standardised purchasing and tracking system for different enterprises within the group presented data analysis challenges
• Work flow disruption occurred due to the holiday season
• Challenge in obtaining quality information during interaction with buyers across the group occurred due to data sensitivity concerns
Lessons Learned
• China still has a substantial edge over other shortlisted countries in terms of quality suppliers and product categories available
• China is losing its apparel competitiveness to other BCC countries in Asia mainly due to increase in labour costs
• Continue to source from China, but gradually diversify your sourcing portfolio to include other BCC countries in Asia to maximise cost benefits
Procurement Advisory
Leading International Retailer
Type Garments and apparel
Services Research and analysis, procurement feasibility assessment, supplier comparison
77
Strategic Sourcing of LNG Facilities
Leading Australian Oil & Gas EPC
Outcomes
• Axis Group shortlisted 4 Chinese and international companies for further engagement after a comprehensive RFI and analysis process. This process vetted Chinese companies’ capabilities: engineering, product range, fabrication and assembly, pre-commissioning, after sales services, reference, etc.
Organisational Setup
• Axis Group: 1 Project Manager, 1 Procurement Specialist and 1 Procurement Engineer
• Client’s Group Procurement Dept.: 1 Lead Process Engineer, 1 Strategic Business Planner, 1 Strategic Business and Research Analyst
Key Risks andIssues Addressed
• Difficulties in setting up ranking criteria and obtaining information from targeted companies. Axis Group finalized the supplier ranking and shortlisting methodology for the client based on the agreed key assessment areas
• Chinese companies’ weak handling of English documents was mitigated by document support from Axis Group
Supplier Competitiveness
• Chinese companies are more mature and competitive at fabricating and assembly while US suppliers are stronger in providing engineering technology
Strategic Sourcing
Type Modularized LNG process plant, mobile refueling trucks, road tankers trailers, vacuum storage bullets and load/unload facility
Services Validation of Chinese supplier list, new supplier identification, strategic market analysis of suppliers, supplier ranking & shortlisting
78
General Merchandise Procurement
Leading African General Merchandise Distributor
Categories
• Small domestic appliances (microwave oven, toaster, iron, blender and kettle, etc.)
• Cookware (aluminium and stainless steel pans, pots and pot sets, etc.)
Organisational Setup
• Axis Group: 1 Project Manager and 2 Procurement Analysts (1 in Beijing, China and 1 in Johannesburg, South Africa)
• Client: 1 Group Executive, Business Development and 1 Commercial Project Manager, Africa Division
Key Challenges
• Very limited information on specifications was available. Axis Group provided various choices to the client after conducting market research
• Suppliers’ lack of African experience. Axis Group assisted Chinese suppliers to understand the specific conditions of the African market. This resulted in receiving more accurate quotations as well as establishing clearer lines of communication with the client
Supplier Competitiveness
• Cost savings can vary widely according to different business models. Higher cost savings can be achieved from low-end ODM products
• A large ODM supply base with improving quality levels and good design capabilities is available
• Shorter lead-times
Strategic Sourcing
Type General merchandise
Services Procurement feasibility assessment, industry/product research and analysis, supplier identification and evaluation, supplier shortlisting, RFQ, DDP price calculation, plant audit and negotiation (on-going project)
79
FMCG Procurement (non-food)
Leading African FMCG distributor
Categories
• Batteries (alkaline/carbon-zinc AA, AAA, C, D, etc.)
• Candles (white candles, tea light candles, etc.)
Organisational Setup
• Axis Group: 1 Project Manager, 2 Procurement Analysts (1 in Beijing, China and 1 in Johannesburg, South Africa)
• Client: 1 Group Executive, Business Development and 1 Commercial Project Manager, Africa Division
Key Challenges
• Limited initial order quantities made supplier relationship management more difficult. Axis Group assisted with on-going engagement and relationship management, ultimately increasing interests from suppliers
• Relatively small supplier base for low-end products, given that most of the suppliers focus on the high-end market
Supplier Competitiveness
• High-cost savings can be achieved with Chinese suppliers; however, quality and delivery time need to be closely monitored
• Good ODM supply base with increasing Africa experience.
• Short lead-times with reasonable MOQ
Strategic Sourcing
Type FMCG – Non-food
Services Procurement feasibility assessment, industry/product research and analysis, supplier identification and evaluation, supplier shortlisting, RFQ, DDP price calculation, plant audit and negotiation (on-going project)
Global Aluminium Player
Developed global procurement strategy and roadmap – and currently implementing comprehensive global procurement program. Current solutions include supplier database, tender support, project management and all strategic sourcing & transactional procurement activities including quality management and logistics
1. Axis Group International - Overview
2. Global Procurement & Supply
3. Key Clients & Case Studies
4. Key People
5. Thought Leadership
Agenda
82
Key People (1/2)
Kobus van der WathFounder & CEO
Previous Experience
• Current: Founder, Axis Group International; Adjunct Professor: UCT GSB, SA
• Senior Consultant: BCG, Asia• Head of Investment Strategy, Asia Pacific (Singapore) & Emerging Market Strategist (UK): Standard Chartered Bank
• Strategist: Standard Merchant Bank, SA
• Economist: SA Reserve Bank
Education• MBA (INSEAD, France)• MSc (Curtin, Australia)• BCom (Hons) Finance & Investments (Unisa, SA)
• BCom (Hons) Econ & Ind Psy (UJ, SA)
• Fluent in English, Afrikaans and Dutch. Basic Mandarin
Rachel WuManaging Director: AsiaHead: Global Procurement & Supply
Previous Experience
• Sr. Project Manager, Consultant, Procurement Specialist: The Beijing Axis, China
• Consultant, CRM: Foreign Airlines Service Corporation (FASCO), China
• Analyst: Marbridge Consulting, China
Education• MBA (University of Western
Australia, Australia)• BCom (Hons), Economics
(University of Economics and Business, China)
• BA (UEB, China)
• Fluent in Mandarin and English
Gerrie de JongeManaging Director: South Africa & Africa
Previous Experience
• Group Managing Director, Southern and East Africa: Imperial Logistics
• Executive Director Africa (SADC): Imperial Logistics
• National Logistics Manager: Xstrata
Education• BCom (Hons) Logistics Management (University of Pretoria, SA)
• Fluent in English and Afrikaans
83
Key People (2/2)
Bruce MilneChief Financial Officer
Previous Experience
• General Manager of Finance: Imperial Health Sciences
• Financial Director: ProCard• Financial Director: Coin Security• Financial Director: BBR Security
Education• BCompt (Hons) Accounting Science (UNISA, SA)
• BCom (University of Witwatersrand, SA)
• Fluent in English and Afrikaans
Haiwei HuangDirector
Previous Experience
• Associate Director, Senior Manager, Consultant: The Beijing Axis, China
• Team Leader, Project Manager: CHINT, China
• Sales and Marketing Consultant: HuaQi Telecom, China
Education• BA (Hons) Business
Administration (London South Bank University, United Kingdom)
• Fluent in Mandarin, English and Shanghainese
Barbie CoDirector
Previous Experience
• Sr. Manager, Consultant, Analyst: The Beijing Axis, China
• Project Assistant: TravelPeopleMagsaysay Group, Philippines
• Events and Marketing Consultant, Philippines
Education• BA (Hons) International Relations (Ateneo de Manila University, Philippines)
• Chinese Language (Beijing Normal University, China)
• International Business (ESSCA, France)
• Fluent in English, Mandarin and Filipino. Basic French and Minnan
Leading Integrated Global Mining & Processing Company
Comprehensive outsource partner for all global procurement across America’s, Europe, Middle East, Africa & Australasia
Agenda
1. Axis Group International - Overview
2. Global Procurement & Supply
3. Key Clients & Case Studies
4. Key People
5. Thought Leadership
86
Thought Leadership – Selected Engagements (I)
Date City Event Name Axis Group Participation
21 Jan 2021 PerthAxis Group Roundtable Discussion: Global Supply Chain Shift
‘International Dynamics, Risk & Supply Chain Shift – Challenges, Strategic Choices & Practical Considerations for Resource Sector Supply Chains’ - Kobus van der Wath and Rachel Wu, Managing Director: Asia hosted this event and shared their perspectives on the same
17 Dec 2020 Webinar SourcingShift Summit‘Global Sourcing in 2021 – Supply Chain Shift, Strategic Choices and Practical Considerations’ - Kobus van der Wath delivered a presentation on this topic
26 Nov 2020 Webinar CIPS ANZ Webinar‘Shifts in Global Supply Chains Post-Covid: Revisiting the Strategic Choices and Practical Issues in Global Sourcing’ - Kobus van der Wath and Rachel Wu, Managing Director: Asia delivered a presentation on this topic
24-25 Nov 2020 Webinar Smart Procurement World Indaba‘What has the Coronavirus taught us about Supplier Management and Global Sourcing?’ - Kobus van der Wathdelivered a presentation on this topic
17 Nov 2020 WebinarProcurement & Supply Chain Summit MENA
‘Shifts in Global Supply Chains Post-Covid: Revisiting the Strategic Choices and Practical Issues in Global Procurement & Supply’ - Kobus van der Wath and Rachel Wu, Managing Director: Asia delivered a presentationon this topic
24 Sep 2020 PerthWAMC September 2020 Luncheon –Explorers on the Move Panel Discussion
Axis Group was one of key sponsors of the Sep 2020 Western Australia Mining Club (WAMC) event
16 Sep 2020 Nairobi SAPICS Webinar‘Modern Slavery in Global Supply Chains and how do we tackle this scourge?’ - Rachel Wu, Managing Director: Asia delivered a presentation on this topic
19-20 Aug 2020 Webinar Africa Supply Chain in Action‘New World of Risk: Getting Global Procurement & Supply Right’ - Kobus van der Wath delivered a presentation on this topic, and participated in a panel discussion on ‘Management – Leading Through Black Swan Events’
7 Apr 2020 WebinarIs it Mexico’s Turn? Alternative Supply to China
Kobus van der Wath participated in a webinar discussion hosted by Procurious on the effects of COVID-19 on global supply chains and how it can affect China’s position as a world manufacturing hub
11 Mar 2020 Nairobi CIPS Dinner Session‘Risks in Global Supply Chains’ - Kobus van der Wath and Rachel Wu, Managing Director: China & Asia, delivered a presentation on this topic. Axis Group was the headline sponsor of this event
87
Thought Leadership – Selected Engagements (II)
Date City Event Name Axis Group Participation
26 Feb 2020 Johannesburg CIPS Africa Executive Summit‘Managing Risks in Global Supply Chains’ - Kobus van der Wath delivered a presentation on this topic. Axis Group is the headline sponsor of this event
13 Feb 2020 Johannesburg African Mining Network Axis Group was the sponsor of the Feb 2020 African Mining Network event
5 Feb 2020 Cape TownMining Indaba 2020 Reception with Mergence and Axis Group
Axis Group and Mergence Corporate Solutions hosted their annual cocktail hour event during the week of Mining Indaba
4 Feb 2020 Cape Town Investing in African Mining Indaba 2020‘Examining China’s Electrification Strategy & its Subsidies in African Mining’ - Kobus van der Wath participated in a panel discussion on battery metals specifically focused on this topic
30 Jan 2020 Johannesburg First Thursday Club Axis Group was the sponsor of the Jan 2020 First Thursday Club event
5-10 Nov 2019 Shanghai China International Import Expo Axis Group participated at the China International Import Expo
2 Nov 2019 Shanghai South Africa – China Business ForumKobus van der Wath participated in a roundtable discussion, speaking on behalf of the South Africa China Business Association, outlining areas essential to the success of South Africa-China business relations
17 Oct 2019 Johannesburg GIBS Open Programme Masterclass‘Africa-China Masterclass – Strategic Imperatives and Opportunities for South African and African Businesses’ -Kobus van der Wath conducted a masterclass on this topic
19 Sep 2019 JohannesburgSmart Procurement World Indaba | Senior Procurement Executive Programme
‘Getting Global Procurement Right – a Strategy and Implementation Workshop’ - Kobus van der Wath conducted a workshop on this topic
17 Sep 2019 Johannesburg Smart Procurement World Indaba‘Global Sourcing in a Complex World – Strategic Imperatives for Unlocking Value via International Supply Chain’ - Kobus van der Wath delivered a presentation on this topic
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