Glencore has hired Accenture to provide sourcing and procurement services for its Australian copper and zinc business.
The six-year contract with Glencore Queensland, a subsidiary of the diversified natural resource company, is expected to deliver cost savings of more than $300 million over the period.
Under the deal, Accenture will provide end-to-end sourcing and procurement services including cloud-based sourcing, category management and procure-to-pay tools, as well as market sourcing insights and analytics to help Glencore maximise procurement and sourcing benefits.
“Mining clients continue to grapple with cost pressure in the ongoing environment of low commodity prices,” said Joost van de Meent, managing director, resources, at Accenture. “Our solution will extend Glencore’s existing procurement capability to improve spend management and reduce transaction costs, while improving visibility across Glencore’s businesses.”
The work will be performed at Glencore’s Mount Isa mines operation in Australia, the Accenture operational efficiency centre of excellence in Brisbane and other Accenture locations.