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Agenda
2
Time Topic Objective Speaker
10:00 – 10:30 Welcome & Introduction Group Logistics Strategy
Purpose of the briefing session
Welcome and opening remarks Leroy M Nsibande
10:30 – 10:45 Vendor Application & SHERQ
Management Systems
How to become an accredited vendor in
ArcelorMittal South Africa Ntokozo Khanyile
10:45 – 11:00 Q&A All
11:00 – 11:15 Preferential Procurement Policy • Explain the impact of the Preferential
Procurement Policy
• Enterprise Development – Interventions
Tometsi Mosai
11;15 – 11:30 Q&A All
11:30 – 12:30 Logistics Business Opportunities in
ArcelorMittal South Africa AOL/SADC
Raw Materials
Domestic Steel
Ports & Harbours
• Overview of logistics related business
opportunities
• Cross border road transportation of steel
to Sub-Saharan African customers
• Steel to the local market/customers
Hennie Odendaal
12:30 – 12:45 Q&A Discuss opportunities All
12:45 – 13:00 Evaluation Criteria Supplier Database
Tender
• Transparent, Fair, Equitable
• Evaluation Criteria: Price, Capacity,
BEE Level, SHERQ
Leroy M Nsibande
13:00 Closure Leroy M Nsibande
Operational Overview
Flat Steel Products shipped*
• Vanderbijlpark Works – 2 250kt (2 478)
• Saldanha Works – 1 092kt (941)
Long Steel Products shipped*
• Newcastle Works – 1 305kt (947)
• Vereeniging Works – 278kt (337)
Iron ore procured*
• 3 444kt (4 584) from Sishen
• 1 234kt (1 409) from Thabazimbi
• 1 285kt (650) others
Coke & Chemicals shipped*
• Coke – 460kt (631)
• Tar – 109kt (117)
*12 months to December 2012
Vereeniging
Works
Johannesburg
Newcastle
Works Sishen
Vanderbijlpark
Works
Thabazimbi
South Africa
Saldanha
Works
Cape Town
Durban
Steel plants
Captive iron ore source
Group Logistics Structure
4
Group Manager & Head of Logistics
LM Nsibande
Manager: Ports & Harbours
T van Tonder
Manager: Logistics Group Contracts
H Odendaal
Manager: Logistics Operations
C Loots
Manager: Central Logistics Planning
E Odendaal
Snr Specialist: Raw Material
Livhu Mugwagwa
Specialist: AOL
Rudzani Tshifhumulo
Snr Specialist:
Ports & Harbours
Naresh Singh
Snr Specialist: Domestic
Steel
Ria Vermaak
Adjudication Committee
GIT
R. Palayi
Group Logistics:
Our Vision: To provide integrated logistics solutions to ArcelorMittal South Africa by strategically supporting
our business objectives
Our Mission: To be the benchmark in logistics within ACIS
Our Principle: To Communicate, Coordinate & Collaborate (3Cs)
Purpose of the briefing session….
The purpose of this briefing session is to provide information on:
Accessing transport and logistics business opportunities in ArcelorMittal South Africa
The structure of Group Logistics as a dept. with Procurement & Logistics
ArcelorMittal South Africa’s tender process at a glance
How to get hold of ArcelorMittal South Africa tender documents
Applying to become a vendor in ArcelorMittal South Africa
What information and documents to provide with a tender response
5
Logistics spend 2012
Road TPT Raw Material, R281,598,505.00
Road TPT Steel, R899,828,040.87
Rail Transport, R3,305,000,000.00
Sea Freight, R195,868,407.00
Port Costs, R297,378,812.48
Logistics spend overview 2012
What governs our procurement?
7
FAIR
COST EFFECTIVE
EQUITABLE
COMPETITIVE
TRANSPARENT
Everyone must be given the same opportunity to tender.
No favouritism
The process must be open, showing there is nothing
exclusive or to hide
Open and fair competition must be promoted
Decisions must promote equity in South Africa, with preference
to the previously disadvantage or BEE companies
The best value for money must be obtained
ArcelorMittal South Africa will act in the following manner when procuring
logistics services
ArcelorMittal tender process at a glance…
8
Tender is advertised
Newspaper
Website
Tender Notice Board
Collect tender
Document
Fax
Attend briefing session
(where applicable)
Complete tender form
And assemble relevant
documents,
information and costing
for your tender response
Submit your tender
Before the closing
date and time
Render the
contracted service
Unsuccessful tenderers
are informed that they
were unsuccessful
If successful, you
are awarded
the tender and you
will be required to
sign a contract
1 2
8
3 4
7 6 5
Vendor application &
ArcelorMittal SA performs
vendor
audit on SHERQ systems
Performance
Evaluation
Monthly
Vendor registration requirements
• The following documents are required before vendor registration
• Certified copies of the required documentation must accompany the fully completed ArcelorMittal
vendor application form. Applications will be rejected should any of the required supporting
documentation as listed below not be attached to the vendor application form:
• Registration certificate of:
- Private or Public Company (CM1 or CM6 Certificate of incorporation)
- Closed Corporation (CK1 or CK2 – Founding Statement for Closed Corporation or amendment
thereof)
• VAT Registration certificate
• TAX Clearance certificate
• Registration certificate at Compensation Commissioner (Letter of Good Standing)
• Cancelled cheque or letter from Financial Institution confirming bank details
• The Applicant must hold a valid BBBEE certificate of at least level 5, issued by an accredited
verification agents
• ISO 9001 - Quality accreditation or compliance certificate (If available)
• ISO 14001 - Environmental accreditation or compliance certificate (If available)
• OSHAS 18001 – Health and Safety accreditation or compliance certificate (If available)
10
SHERQ Requirements
Arcelormittal and contractors are required by the OHS Act 85 of 1993 to provide a safe
work environment and protect the safety and health of their work forces. Arcelormiital
South Africa has +- 1300 contractors on site contractors including transport contractors .
All potential transport contractors will be audited by Vendor management to confirm their
legal and SHERQ compliance with ArcelorMittal requirements. The audit is base on ISO
14001 , ISO 9001 and OHSAS 18001.
The minimum score to achieve is 65% in all three standards , If a vendor does not
achieve a score of 65% or more for the assessment, a second audit will be arranged . If
the vendor fail the second audit , it will be permanently black listed and it will never be
ably apply for the vendor code with Arcelormittal
If the vendor pass the audit , a vendor code will be allocated , then it is expected that the
vendor prepares a safety file before any work is performed .
11
Preferential Procurement Policy
“Broad Based Black Economic Empowerment (BBBEE) is an integrated and
coherent socio-economic process, located within the context of the country’s
national transformation programmes, ArcelorMittal South Africa Limited commits
itself to actively support and contribute to the development and growth of BBBEE
enterprises in the Republic of South Africa”.
Policy Objectives
• Creating an enabling environment for BBBEE enterprises to access available
procurement opportunities within ArcelorMittal South Africa.
• Increasing participation by small and medium enterprises (SMME’s) that are
black owned and black women owned.
• Contributing to the growth of the small and medium sized BBBEE enterprises
by ensuring that a target percentage of expenditure on goods and services is
procured from such enterprises.
• Contributing to the development of the small and medium sized BBBEE
enterprises through initiatives that are aimed at improving their business
sustainability.
Order of Preference
1. Black Women Owned (BWO) and managed entities with exempted micro-enterprise
(EME).
2. Black Owned (BO) and managed entities with exempted micro-enterprise (EME) status.
3. Black Women Owned and managed entities (BWO) with qualifying small enterprise status (QSE).
4. Black Owned and managed entities (BO) with qualifying small enterprises status (QSE).
5. Black Women Owned and managed entities (BWO) with generic enterprise (GE) status.
6. Black Owned and managed entities (BO) with generic enterprise (GE) status.
7. Contribution level ranking where contribution level 1 is the most preferred and level 8 is the least preferred.
Supplier Development Interventions
• Partnership agreement with ABSA
– Invoice clearing facility.
– Vendor financing.
• Partnership agreement with B1SA
– Advisory services on BBBEE compliance.
• Targeted procurement
– “Set a side” procurement opportunities for exclusive participation by a
designated group of companies.
Road transport of steel- domestic and export
Enquiries will be issued before the end of 2013 for the road transport of steel – all
tonnages reflects estimated annual tonnages:
• From Pretoria to domestic customers + 81,000 tons
• From Vanderbijlpark to Durban and Richards Bay and domestic customers
approximately 69,000 tons.
• From Vereeniging to Durban and Richards Bay and domestic customers +
approximately 70,000 tons
Enquiries will also be issued for:
• The receiving, packing and handling of + 76,800 tons of tin products at
ArcelorMittal Vanderbijlpark as well as the transport thereof to Durban for
export and to domestic customers.
• The receiving, packing and handling of + 67,000 tons of DWI products at
ArcelorMittal Vanderbijlpark as well as the transport thereof to domestic
customers
19
20
Opportunities in SADC countries
• Available opportunities SADC region are:
• More details about volume per route per country will be available on the main tender
• Maximum of 3-year contracts commencing on 1 January 2014
VANDERBIJLPAKR WORKS TO: NEWCASTLE WORKS TO: VEREENIGING WORKS TO: PRETORIA WORKS TO:
Country Estimated tons/Month Country Estimated tons/Month Country Estimated tons/Month Country Estimated
tons/Month
Namibia 82 Malawi 59 Botswana 60 Botswana 56
Malawi 381 Swaziland 108 Zambia 90 Mozambique 150
Botswana 2 083 Zimbabwe 395 Zambia 150
Zimbabwe 2 176 Namibia 620 Zimbabwe 200
Zambia 4 291 Botswana 1 250
Mozambique 4 754 Zambia 4 388
Mozambique 5 438
13 767 12 260 150 556
Import Coal
• Total coal imports 1.7 million ton per annum
• Predominantly rail
• Road needed when rail fails
Destinations
• Richards Bay to Newcastle 20,000 per month
• Richards Bay to Vanderbijlpark 20,000 per month
Additional information
• Side tippers only
• 20-30 loads per day to each business unit
• Estimated payload 34 ton
21
Ports and Harbours contracts
Service – Contracts expiring within
the next year - 2014
ESTIMATED Volumes
Tally of export steel at Saldanha Steel 660 kt pa
Tally of export steel at Richards Bay 41 kt pa
Warehousing, consolidation &
transportation of import consumables
70 kt pa
~ 2 400 containers pa
Service – Other contracts expiring in 2015
Stevedoring of iron ore pellets, coke and steel in Saldanha & Richards Bay
Freight forwarding (Ocean and Air) and clearing of Import Consumables
Combined conditioning, loading, stowing, securing and surveying of AMSA
shipments in Durban & Richards Bay
Surveying of steel in Richards Bay
Evaluation Criteria
24 24
Competitive Price
Capacity
BBBEE Level
SHERQ Systems
• Value for money
• Total Cost of Ownership, etc.
• Preferably Level 1 – 5
• As per ArcelorMittal Preferential Procurement Policy
• Commercially - (Financial position of prospective supplier)
• Technically – vehicles to execute contract (i.e. vehicle type, etc)
ArcelorMittal South Africa will evaluate tenders based on the criteria listed
below:
NB: Price
1
2
3
4
• Based on our SHERQ system as per vendor application onto our
database
Capacity Set-asides • Supplier Development
• SMME Development
Contact Details
26
Hennie
Odendaal(Manager)
[email protected] • (016) 889-4256
• 0832725758
Rudzani
Tshifhumulo(Specialist)
[email protected] • (016) 889 2799
• 060 500 4325
Livhuwani
Mugwagwa(Specialist)
[email protected] • (016) 889 3531
• 083 450 9452
Ria Vermaak(Specialist) [email protected] • (016) 889 4167
• 083 304 0289
Naresh Singh(Specialist) [email protected] • (016) 889 3153
• 083 452 7396
Refilwe Palayi(Specialist) [email protected] • (016) 889 2206
Tometsi Mosai
(Preferential
Procurement)
[email protected]. • 016 889 3056