ArcelorMittal Liberia

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Supply chain

ArcelorMittal Liberia supply chain

ArcelorMittal Liberia is committed to and focused on continually improving the efficiency and performance of its operation.

A major aspect of this is ensuring that materials and services are delivered to the end user in an efficient manner and at minimum overall cost to the business.

Purchased goods and services are the company's largest expense area. Therefore, it is the supply chain's role to ensure that goods and services are procured at the lowest cost, highest quality, and optimal service including delivery.

The overall supply policy of the company is to obtain the best value for the materials, goods, and services that it purchases and to maintain the highest ethical standards in dealing with its customers and suppliers.

Value includes price, quality, and service.

ArcelorMittal Liberia supply chain objectives

The supply chain section is responsible for:

  • Providing a consistently reliable, professionally managed and customer focused support service to end users
  • Ensuring that materials are available when and where required and in a fit for purpose state.
  • The setting of stock values and whether the material should be kept on site or otherwise.
  • Collecting all the information on availability, lead-time, price, commercial conditions and compliance with the required specification
  • Gathering supply related statistical data and conducting general market analysis to enable informed decisions regarding commercial and operational decisions.

To ensure that:

  • Goods and services are sourced at the optimum total cost, taking into account all direct and indirect costs associated with the transaction and the supplier
  • All expenditure is committed in a consistent and visible manner
  • All expenditure is compliant with applicable authority and governance
  • Procurement and negotiation procedures are followed
  • ArcelorMittal Liberia is not exposed to unnecessary procurement risk
  • All relevant corporate compliance and governance requirements and obligations are satisfied

ArcelorMittal Liberia supply chain functions

ArcelorMittal Liberia supply chain function can be broken down into three key areas:

1. Procurement

a. ArcelorMittal Liberia’s procurement requirement covers the mining and production operations at Yekepa, Tokadeh, port operations at Buchanan and corporate activities in Monrovia

b. Operational purchasing is managed from our Buchanan site, where as major global commodity contracts are managed through group supply

c. The over-riding consideration is to achieve the most cost effective mix of procurement strategies and resources to deliver the least total cost of ownership to the business.

d. ArcelorMittal Liberia requires materials and services to be acquired from outside sources for operations. Substantial sums of money can be spent on the acquisition of material and services and by ensuring this money is spent well, the buying process can contribute significantly to the company's profitability.

e. The buying or procurement process is a series of activities which need to be performed within a given time period to satisfy a need for either an item of material or service for a predetermined use, whilst adhering to ArcelorMittal’s objectives and general business principals.

f. The purchasing section is responsible for sourcing suppliers, inviting quotations and agreeing on contracts for materials and services.

2. Logistics

a. The purpose of the logistics / expediting process is to ensure the delivery of purchased goods to a pre-determined and promised delivery schedule.

3. Inventory management

a. Successful management of inventories within ArcelorMittal Liberia is dependent on the establishment and application of methods and techniques collectively known as 'inventory management'.

b. The overall objectives of inventory management are:

i. To maximise customer service

ii. To minimise inventory investment

iii. To maximise operating efficiency and company profitability.

c. Effective warehouse management provides customers with the goods they require at the time required more cost effectively than can be obtained from alternative acquisition arrangements.

d. The warehouse is there to ensure that the correct materials are available to meet requirements promptly, in a useable condition and at optimum cost

ArcelorMittal Liberia and its supply partners

It is ArcelorMittal Liberia’s policy to do business with suppliers in a manner that derives the best outcome for both parties while maintaining ethical dealings and an auditable trail at all times.

ArcelorMittal Liberia will:

  • seek to do business with supplier companies that have excellent business ethics and are financially sound;
  • deal locally wherever possible provided that this is the most efficient and economical solution for ArcelorMittal Liberia in the long term;
  • develop long-term agreements where there are advantages to do so;
  • hold regular discussions with major suppliers;
  • use preferred supplier criteria when selecting suppliers;
  • adopt supplier performance measures to track performance;
  • select suppliers displaying superior occupational health and safety and environmental standards

ArcelorMittal Liberia is a valuable customer for many suppliers of goods and services. People who want to do business or to continue to do business withArcelorMittal Liberia must understand that all purchases by the company will be made exclusively on the basis of price, quality, service and suitability to the company's needs.

"A supplier that consistently delivers the material or service to the right quality at the right price makes an important contribution to the effectiveness and efficiency and hence the profitability of the company."

While the specific qualities needed by a supplier may be different for different commodities and types of supply, the following characteristics are considered valuable in any supplier:

  • The ability to provide materials or services to the required specification
  • The ability to deliver on time
  • Quality assurance or works to a quality standard
  • Good safety and environmental record
  • Reacts quickly to unforeseen requirements
  • Warns of production delays or problems
  • Takes the initiative in proposing improvements to product or services
  • Provides technical service, advise and after sales service
  • Demonstrates the ability to remain competitive in the long term

A supplier that meets all the above criteria will make a major contribution to the company's effectiveness and profitability.

ArcelorMittal Liberia supply chain staff development

ArcelorMittal Liberia employees are the company's most valuable asset. ArcelorMittal LIberia includes in its annual budget, development and training allowances for all staff involved with purchasing, logistics, warehousing and inventory management. Supply staff are recruited, trained and developed to provide the required mix of capabilities to manage the supply business professionally and effectively. Ongoing skills assessment are conducted, gaps identified and a training matrix and plan put into place to provide staff with appropriate training to enable enhanced knowledge and professional development.

For information on any job positions or opportunities available within ArcelorMittal Liberia’s supply chain function, please refer to our human resources department