The actions discussed below in this Appendix assume that the firm has already taken three foundation steps:

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1 MAKING YOUR MARK 6.1 Gd Practice This sectin presents an example f gd practice fr firms executing plans t enter the resurces sectr supply chain fr the first time, r fr thse firms already in the supply chain hwever intent n maintaining their psitin. It illustrates the srts f disciplines firms will need t apply in preparing t becme a successful supplier t the mining and resurces sectr. Sme adaptatin f this mdel may be necessary depending n factrs such as the market segment being targeted, specific custmer and client needs, and advice btained frm specialist business advisers. The actins discussed belw in this Appendix assume that the firm has already taken three fundatin steps: Hmewrk cmpleted learned abut yur new custmer Identified that yu have a viable prduct r service Invested in the Opprtunity Develped a cnsistent cmpany image Fcused n relevant cre cmpetencies Thught lng term Develped a realistic strategy fr accessing the industry The supplier is then ready t apprach its future custmer. 1 A typical prcess fr becming a new supplier may invlve: 6.2 Review prcurement plicies/prcedures f Mining and Cnsulting firms Befre appraching a mining r cnsulting firm, gain an understanding f hw the cmpany perates by ging t their website t view the infrmatin prvided. Mining Cmpanies wrk clsely with cnsulting firms when wrking n New r Expansin prjects, explratin and in sme cases, within their day t day peratins. As these Cnsultants will ften manage prcurement functins, it is imprtant t knw them well. Check websites fr Prcurement Plicies and Prcedures r fr the Cmpany s Cde f Cnduct/Ethics Plicies. These statements will prvide guidelines fr acceptable behaviur f suppliers wishing t d business with their rganisatin. Imprtant facts and infrmatin 1 The fllwing material is reprduced with sme amendment frm the 2010 dcument Hw t Successfully Access the Mining Supply Chain prduced by Enterprise Saskatchewan. SMEs wrking with business advisry services, such as Enterprise Cnnect r Manufacturing Slutins Victria, culd derive similar appraches.

2 such as purchasing bjectives, Cnflict f Interest Plicies, Ethical Cnsideratins, Relatins with suppliers, etc. are all cvered in a cmpany s Prcurement Plicies and Prcedures. 6.3 Make an appintment with the apprpriate representatives frm each cmpany Aspiring suppliers shuld refer t websites f Tier 1 and Tier 2 firms and cnsultants t identify the details, by cmpany, n wh t cntact. Sme cmpanies have certain days set aside t see suppliers. If s, schedule an appintment with the purchaser yu wuld like t cnnect with. The ICN Netwrk has cmprehensive relatinships acrss the sectr and can assist in making cntact. The quality f the relatinship yu build will directly impact n the wrk that yu win. Regular cntact with the pertinent parties helps a supplier t stay ahead f the prcurement actin and t identify lcal supplier pprtunities and t fllw these up. 6.4 Prvide prduct literature, catalgues (electrnically), website address Mst cmpanies prefer paperless infrmatin t reduce waste, as well as t receive the mst current, up t date infrmatin s they can make it available t ther departments. Cmpanies searching fr a new supplier will typically use the internet as a tl. This makes yur cmpany website an extremely imprtant part f yur cmpany image. 6.5 Cmplete a supplier qualificatin questinnaire A supplier can be invited t cmplete a supplier pre-qualificatin questinnaire. This prvides imprtant infrmatin abut yur cmpany s that the requester can assess whether r nt t use yur cmpany as a supplier. Pre-qualificatin is designed t reduce as much risk as pssible t the resurce cmpany r EPC/M. The prcess can vary between cmpanies hwever will adhere t the cmpany s plicies. Pre-qualificatin will examine different elements f a cmpany, sme f which may include: Quality certificatin ISO 9001:2000, ISO Occupatinal Health and Safety (OH&S) Training prgrams Cmpany stability/financial review Experience and reference checks QA/QC system Nn-cnfrmance prcess Cntinuus Imprvement prcess Test prcedures Inspectin prcess cntrl Previus wrk cntracts/experience and value f cntracts Management team infrmatin/cvs Executin r delivery team infrmatin

3 6.6 On-Site Suppliers/Cntractrs Fr n-site suppliers/cntractrs, the pre-qualificatin will be mre rigrus, and will have a greater fcus n health, safety and the envirnment. This may include infrmatin n: Quality, Health, Safety and Envirnmental recrds Safety certificatin Liability insurance fr wrkers and vehicles WCB certificate f clearance Letter in Gd Standing 6.7 Prtcls fr Handling Orders It is imprtant that suppliers fllw the prtcl utlined by each cmpany regarding rders, change rders, invicing, packing slips, freight, delivery and final payment f invices. These details can have impact n the evaluatin f a supplier and may result in a supplier being rejected as a preferred supplier. Even thugh yu may be an excellent supplier with a gd quality prduct and service, hw yu handle an rder is imprtant. Yu must fllw thrugh with yur service frm the start f the prject until cmpletin and start-up f the equipment in rder t attain/maintain a preferred supplier status. 6.8 Evaluatin Prcess The majrity f Mining Cmpanies and Cnsultants have sme type f cnsistent evaluatin f suppliers either a standardised frm, r as simple as an infrmal discussin. The criteria fr evaluating suppliers may vary depending n whether it is an evaluatin f a supplier f gds r a supplier f services. Cmmn criteria fr evaluatins may include: Quality f finished prduct Delivery Price Safety Cmpliance t specificatins Turnver packages Mutually agreed upn perfrmance standards SAP Vendr perfrmance mdule Past histry The frequency f evaluatins will vary greatly. It may be a scheduled annual review, r may be tied t prject schedules and cmpletin/delivery dates.

4 6.9 Obtaining Preferred Supplier Status Maintaining a healthy wrking relatinship with yur custmer will ensure repeat business, and in sme cases will result in btaining a preferred supplier status. This status is usually btained thrugh the EPCs and nt thrugh the Cnsultants. This may vary, if it is an EPC Prject, r depending n the Plicies and Prcedures f the cnsulting firm. The benefits t being a preferred r cntract supplier may include: Increased business G t them first, befre all thers, fr pricing Put n preferred bidder s list Lng term cntracts Exclusive arrangements A frmal bid prcess may nt be required, and the wrk may be awarded directly t a reliable, preferred supplier. This is mre cmmn fr lwer dllar value purchases. An example may be gds r services under $50,000. In sme cases, it may be that the preferred supplier is shrt-listed, hwever will still be required t participate in a frmal bid prcess and evaluatin. A supplier may btain a preferred supplier status by: Excelling in all aspects f their wrk Prven service and supply Cmpetitive r advantageus pricing Exclusive supply Prprietary issues

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