BHP’s Local Buying Program has reached more than $500 million in approved spend since its launch in 2012. In that time, the program has worked with over 1,450 local businesses, on over 36,000 work packages, with an average payment period of just 13 days.
BHP President Minerals Australia, Edgar Basto, said: “The Local Buying Program has enabled our small business suppliers to grow and develop their companies as we have grown ours. It has brought our operations and local small businesses closer together. It has increased capability across the local supply chain and boosted regional economic development in our host communities.”
“The program has grown from supporting our Queensland operations in 2012 to now supporting our operations in WA, SA, and NSW. It is more important than ever in the current environment, and is growing at the fastest rate since its inception, with half the $500 million committed in the previous two years alone.”
The program makes it easier for small business owners to competitively bid for supply opportunities through a streamlined onboarding, procurement and payment process that includes 21-day payment terms or less. Small businesses have greater access to work opportunities with BHP through a central online directory.
BHP Group Procurement Officer, Sundeep Singh, said: “We designed the program to make it easier for local small businesses to work with us, and the response has been fantastic. We continue to work with small and local businesses across the country to improve and grow the program.”
BHP partner, C-Res, manages the program and administers all transactional activities, while also providing ongoing support, engagement and mentoring to registered local suppliers.
C-Res CEO, Tracey Cuttriss-Smith, said: “The Local Buying Program is something very special. We knew from the start this was a vital and much-needed program. We knew the opportunity it could bring small businesses and how it would underpin BHP’s Charter to support and nurture the businesses, communities and people in the areas where they operate.”
“What we didn’t expect was the breadth and scope of our growth. This kind of milestone was not even in the realms of our imagination when we started in 2012.”
The Local Buying Programs in Queensland and New South Wales are also supported by the Local Buying Foundation. The Foundation’s role is to support and deliver economic business programs to help build capacity and capability of regional small businesses.
- QLD – $421 million with 955 small business suppliers since 2012.
- WA – $38 million with 273 small business suppliers since 2017.
- NSW – $34 million with 134 small business suppliers since 2016.
- SA – $5 million with 96 small business suppliers since 2017.
Queensland Resources Council
Queensland Resources Council, Chief Executive, Ian Macfarlane, said: “BHP understands small businesses are the lifeblood of regional economies and a key part in powering our State’s jobs growth and I congratulate BHP for its sustained commitment to buying locally in Queensland.”
Chamber of Minerals and Energy WA
The Chamber of Minerals and Energy of Western Australia’s (CME) Chief Executive Paul Everingham said BHP’s Local Buying Program was a fantastic example of Western Australian resources companies working with small business owners to support the local communities where they operate.
“With COVID-19 severely impacting small businesses across the State, initiatives such as BHP’s Local Buying Program will be a lifeline to local suppliers and create employment opportunities in regional communities.”
“By spending locally the resource sector promotes the long-term sustainability of local economies and builds partnerships with communities through mutually beneficial relationships.”
South Australian Chamber of Mines and Energy
South Australian Chamber of Mines & Energy, CEO, Rebecca Knol, said: “BHP’s Olympic Dam operation is a significant contributor to the economic health of South Australia and their Local Buying Program is a meaningful demonstration of BHP’s ongoing commitment to regional communities in the Upper Spencer Gulf. Supporting 96 South Australian small businesses in two years is a great achievement and we hope this continues.”
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