Expectations for SME’s working on major rail projects


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Glenn Clifford, Supply Manager, from Bradken delivered this presentation at the 2013 ARA Rail Suppliers Forum. The annual conference is the only event of its kind in Australia which has been specifically researched and developed for the benefit of the rail supply and rail contracting sector. For more information about the event, please visit www.informa.com.au

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Expectations for SME’s working on major rail projects

  1. 1. © 2011 BRADKEN® LL ARA Rail Suppliers Forum July 2013 Expectations for SME’s working on major rail projects. Prepared by: Glenn Clifford
  2. 2. © 2011 BRADKEN® Agenda • Overview of Bradken and the Rail Division • Expectations of SME’s working on major rail projects, with respect to: • Supplier Assessment • Performance Measures • Opportunities and Benefits • Questions?
  3. 3. © 2011 BRADKEN® Bradken Overview • Bradken is a leading manufacturer and supplier of differentiated consumable and capital products. • Servicing the mining and construction, rail and transit, energy and general industrial markets. • Manufacture fully machined cast iron and steel products from a mass of 0.5kg to over 25 tonnes. • Over 6,000 staff globally • Truly global footprint with 59 manufacturing, sales and service facilities worldwide
  4. 4. © 2011 BRADKEN® Bradken Overview • Sales Revenue of over AUD$1.4B • Structured into five discrete Divisions and seven Businesses focused on meeting the specific needs of the resources industry. • Divisions – Engineered Products, CMS, Mining Products, Mineral Processing, and Rail • Head quartered at the New Global Corporate Centre in Newcastle, Australia • Bradken is listed on the ASX
  5. 5. © 2011 BRADKEN® Bradken Global footprint
  6. 6. © 2011 BRADKEN® Bradken Global Corporate Centre (GCC) • Bradken’s new State of the Art Corporate Headquarters and Technology Centre in Newcastle, Australia
  7. 7. © 2011 BRADKEN® Rail Division Overview • Major markets - coal, iron ore, magnetite, grain, bulk and intermodal, for the resources sector • Rail division design, manufacture, commission and supply freight rail products, including wagons, draw gear, bogies, and spares parts. • Expanded product and service offerings to the resources based rolling stock owners, including locomotives, maintenance and equipment leasing arrangements • Other new products truck trays and buckets • In house engineering and product development, to support all customer requirements
  8. 8. © 2011 BRADKEN® Rail Division Overview • Manufacture of 1700 + wagons in FY13 with circa 1800 wagons forecast for FY14 • Manufacturing consolidated for capital projects into Xuzhou, China, with overflow capacity and other services in Australia. • Rail 21% of the Total Sales Revenue of AUD$1.4B in FY12 • Greater level of competition from the emerging markets, China • Goods and services are sourced globally to support the Rail division needs • Future globalisation of the Rail division
  9. 9. © 2011 BRADKEN® Rail Division Overview Intermodal Iron Ore Wagons Spare parts
  10. 10. © 2011 BRADKEN® Bradken Xuzhou Manufacturing, China • Stage 1: 6,600 square meter, including two bays , mainly for sub-parts assembly • Stage 2: total 13000 square meter, including three bays, Rail • Stage 3 & 4: total 55,000 + 18,000 square meters, foundry & CMS store • Stage 5: total 8,000 square metres, fabrication of buckets, truck trays and fixed plant (not built)
  11. 11. © 2011 BRADKEN® Expectations of SME’s working on major rail projects Supplier Assessment • Does the supplier have a suitable product or service to meet our needs, for major rail projects • Intellectual property protection in place between parties • Suitable systems, processes & accreditations for: • Quality management • OHS&E • Suitable capacity and capability to support us, both now and in the future • Consideration of Company footprint – global or local
  12. 12. © 2011 BRADKEN® Expectations of SME’s working on major rail projects Supplier Assessment • Level of innovation and differentiation to support customer needs • Supply chain establishment as an input into manufacturing in Xuzhou, China, and also for warranty and support services in Australia. • Evidence of lean and waste reduction • Best market rates for goods or services available • Ability to fix pricing for duration of project, to aid project forecasting & currency ‘FX’ management • Financial stability to support Bradken
  13. 13. © 2011 BRADKEN® Expectations of SME’s working on major rail projects Supplier Assessment • Company has a suitable structure and resourcing plan • Supplier approval process complete – internal / customer • Ability to support Warranty and Service needs of our customers • Approved commercial offer between parties and Purchase Order in place, prior to proceeding with the supply of goods and services • The supplier will demonstrate a commitment to and culture of continuous improvement
  14. 14. © 2011 BRADKEN® Expectations of SME’s working on major rail projects Performance measures • Meeting Lead times into production • Delivery on time in full – DIFOT • ALL Contract deliverables met • Quality and safety systems audits and reporting • Project reporting on time, where required • Reject performance and reporting • Response time to support design, production or to resolve warranty and in service problems • Meeting ALL terms and conditions of contract
  15. 15. © 2011 BRADKEN® Expectations of SME’s working on major rail projects Opportunity Benefits To achieve approved supplier status Ability to supply goods and services into Bradken’s Rail Division, for major projects. Potential entry into new market sectors Future business growth and financial stability Agreed general terms & conditions Reduce lengthy negotiations prior to contract award Supply of innovative products or services To improve capital cost, reliability, efficiency and safety of Bradken products or services
  16. 16. © 2011 BRADKEN® Expectation of SME’s Opportunity and Benefits Opportunity Benefits Improved logistics management Reduced cost and lead times, & improved reliability of the end to end supply chain Supplier Continuous Improvement Initiatives Access to programs like ‘SCIP’ can help improve business performance Improved quality and safety systems Quality cost reduction for rework, scrap & warranty claims. Better delivery performance & reporting More visible safety compliance & reporting
  17. 17. © 2011 BRADKEN® Expectation of SME’s Opportunity and Benefits Opportunity Benefits To Improve Relationship Management Systems CRM / SRM Improved communications, potential for cross company teams working together, ability to improve long term planning & reduced customer complaints Potential access to other parts of Bradken business, via corporate group supply (including SLA’s) Could enable SME’s to generate higher sales revenue based on greater volumes, improve planning & maximize the value for both parties
  18. 18. © 2011 BRADKEN® LL Thank You