Mining giant outsources procurement of contractors

10 December 2010
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11 December 2010 | Lindsay Clark

Rio Tinto is to outsource the purchase of its contract workforce to KellyOCG.

The international mining firm cited improved compliance to health and safety standards as the aim of the arrangement, under which KellyOCG’s Contingent Workforce Outsourcing practice will provide contract labour and supplier management strategy. Although neither firm would disclose the value of the deal, it is designed to support spend on temporary labour of around US $1 billion (£633 million).

"Nearly half of Rio Tinto's 100,000-strong global workforce is comprised of contractors, and a key driver of this programme is improving contractor compliance with our health, safety and environment (HSE) standards,” said Scott Singer, global head of procurement at Rio Tinto, in a statement. “This programme is also expected to provide major improvements in our contractor administration process through enhanced governance and increased data visibility."

KellyOCG is expected to provide supplier qualification and inductions for new contractors, as well as sourcing and transactional management. The deal is also expected to improve HSE performance of suppliers to the miner, improve process efficiency and enhance relationships with the supplier community.

John Healy, KellyOCG vice-president, enterprise workforce solutions, said: “At a minimum, we expect to significantly decrease the amount of time spent by Rio Tinto operational leadership performing administrative functions, thus freeing them up to focus on supervising the actual work being performed, and to drive improved HSE performance.”

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