BHP Cost Down Initiative

 BHP Cost Down Initiative

The Workwear Group Introduces Cost Down Initiatives for BHP

Historically adopting a traditional supply chain methodology in the sourcing of clothing and footwear requirements, the BHP group were experiencing significant on site costs in the manual ordering and paper based processes for the sourcing of their workwear. Consequently, these methods did not afford BHP the opportunity for enhanced control over the entitlements of personnel, nor the brands available to purchase.

Working with BHP, the Workwear Group completed a transition of the supply of these goods and services from the incumberant wholesaler to a purchasing service model with The Workwear Group under a cost down and spend management initiative. In this move, the Workwear Group delivered exceptional value to BHP through service excellence, resulting in approximately $460,000 savings per annum through moving away from the costly on site shop front model, to an integrated online purchasing model that regulated employee entitlements. Resulting in a consolidated clothing and footwear range, introducing the automated process resulted in the placement of orders in accordance to the employees EBA entitlements, offering detailed reporting processes to manage stock on hand, quantity and spend at each site to track volume discounts.

The transition from a traditional supply chain methodology, to working directly with the manufacturer The Workwear Group, resulted in a fully integrated system that provided significant savings, whilst enhancing control and efficiency over the process of purchasing footwear and clothing.