Post on 20-Aug-2015
© 2011 BRADKEN®
LL
ARA Rail Suppliers Forum July 2013
Expectations for SME’s working on major
rail projects. Prepared by: Glenn Clifford
© 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?
© 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
© 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
© 2011 BRADKEN®
Bradken Global Corporate Centre (GCC)
• Bradken’s new State of
the Art Corporate
Headquarters and
Technology Centre in
Newcastle, Australia
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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
© 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
© 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)
© 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
© 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
© 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
© 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
© 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
© 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
© 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