The Mosaic Company - Saskatchewan Mining Association

The Mosaic Company
Becoming a Preferred Supplier
Saskatchewan Mining Association
April 10, 2013
Denise Stasuik
Sourcing Manager, Mosaic Potash
Built by People. Bound by Purpose
Safe Harbour Statement
Safety Moment
“Be obsessed with safety”
Peter J. Jackson, P.Eng., MBA
Vice President, Operations Potash
The Mosaic Company
Mosaic
Our Mission
We help the world grow the food it needs
Our Vision
To be the world’s leading crop nutrition company
Mosaic
Our Values
1. Integrity
2. Excellence
3. Sustainability
4. Connectivity
Mosaic Potash
Annual Capacity
Location
(Million Tonnes)
Esterhazy, SK
4.0
Belle Plaine, SK
2.8
Colonsay, SK
1.8
Carlsbad, NM
1.7
10.3
• Esterhazy is the world’s largest potash mine
• Belle Plaine is the pioneer of solution mining and is the world’s
largest potash solution mine
• Carlsbad produces K-Mag, a branded specialty fertilizer containing
potassium, sulphur and magnesium
Mosaic Facts
Commitment to Saskatchewan
Major commitments to communities where we operate:
• Children’s Hospital Foundation of Saskatchewan
– $4 million donation in support of Saskatchewan’s first children’s
hospital, to be located in Saskatoon
• St. Anthony’s Hospital Foundation (Esterhazy)
– $1 million match donation
• Mosaic Heart Centre
– A provincial cardiac centre of excellence, located at Regina
General Hospital
• STARS
– $5.5 million in support of an emergency air ambulance service for
southern Saskatchewan
• St. Anthony’s Hospital Foundation (Saskatoon)
– $500,000 match donation to support the community of Esterhazy
in their fundraising to build a new hospital
Growing Communities
Mosaic is committed to investing in and
strengthening communities
• Mosaic Stadium
 Home of the Saskatchewan Roughriders
• Mosaic Place
 Moose Jaw multi-purpose facility; and
home of the Warriors
• Habitat for Humanity
 37 homes built for Saskatchewan families
• Queen City Ex presented by Mosaic
 Community outreach programs supporting
Regina area charities for children and
families
Growing Communities
Mosaic Tower at Hill Centre 3
Momentum launched to deliver on Potash Business
aspirations
Project objectives
Momentum is a holistic transformation effort with
Board of Directors level commitment
Leading the Way in Potash
– Growing our business
through people
– World class safety
Fundamental objective is to develop common model of
how best to structure and manage the business
▪
Institutionalizes areas of strength and resolves
organizational challenges currently (and projected to
be) faced
▪
Creates and captures economies of skill and scale
(in procurement and in our operations)
▪
Ensures knowledge transfer to the “next generation”
as well as on going knowledge development
▪
Prepares organization for upcoming growth and
productivity necessities
– Manage the growth
– World-class
productivity
Total Cost of Ownership
We are assessing all major cost levers as part of our evaluation. Increased
focus on Total Cost of Ownership for our spend will provide additional
opportunities to add value and partner with Mosaic.
OEM
costs
Marketing Distributor Mosaic
payments
costs
purch.
price
Focus for today
Other
Mosaic
costs
Mosaic
TCO
Mosaic Spend Includes:
• Chemical
MRO
• Fuels and Lubes
Service Contractors
• Safety Supplies
• Electrical Supplies
• General Maintenance,
Mine Mill supplies
Conveyors
Bridge Conveyors
Mobile Equipment
• Building products & electrical cable
• Bearings, Power Transmission
47%
53%
• Pipe, Valves and Fitting
• Mining Equipment
• Lab supplies
• Office supplies
• Transportation Equipment
• Pumps
Mosaic Potash spend
FY2012: CAD $1.7 Billion
• Electric Motors
• Heavy Mobile Equipment
* Includes sustaining capital, not
expansion
Screens
Storage Buildings
• Earth moving
• Contract Services
Strategic Sourcing
Opportunity analysis
& team launch
Sourcing Strategy
Category Analysis
Sustainable
Strategy Development
Long Term
Agreements
Screen suppliers/RFI
Relationships
Workshops/proposals
Continuous
Improvement
Negotiate and award
Contract
Implementation
Relationship
management
Total Cost of
Ownership
Supply market - Filtering down to a list of viable
potential suppliers
Complete list of
potential suppliers
from market research
List of suppliers
including those who
could be viable
suppliers with
development work
List of currently viable
potential suppliers
Decision criteria
– Suppliers who have
significant financial failure risk
Decision criteria
– Suppliers who do not return RFI
– Suppliers who do not have
capacity
– Suppliers who do not meet
quality, qualification, or safety
standards
1
5
Clean sheet and Fact based analysis
Supplier performance and average
supply base performance
100
90
80
70
60
50
40
30
20
10
0
Review key raw material price indexes to understand
trends compared to Supplier prices
Spend Data KPI’s now form an integral part of our Supplier
Meetings
Vendor spend evolution
CAD (MM) - Fiscal Year
Contract
2.0
+18% p.a.
9.4
5.9
1.4
4.5
3.8
8.7
7.4
2.3
11.4
1.9
5.1
80%
1.5
1.0
3.0
9.5
5.6
Vendor Spend by Site
(millions)
Vendor spend Contract vs.
Non-Contract %
20%
5.7
Non-Contract
2007 2008 2009 2010 2011
0.5
0.0
PBP
These demonstrate a few spend KPIs that are being reviewed
and discussed regularly with our Suppliers
17
PCL
PES
Team Approach to Vendor Management
Mosaic’s Expectations of Suppliers
●
●
Understand and conduct business
complementary to our Code
Understand that Mosaic operates
according to this code and expect the
same with our partnerships
• Understand Mosaic’s needs…
• You are us in approach, mentality &
action
• You know more than us, help us to
innovate
• Business today requires flawless
execution
●
Safety is our mandate, lets go beyond
●
Manage information confidentially – do not
share without permission
http://www.mosaicco.com/suppliers/
Contractor Management
Insurance
Safety
Manual
process
Not
Sustainable
Lack of
resources
Electronic tool ISNetworld to effectively
track contractor conformance
components in one system that is
accessible to all employees
Workers Compensation
Board status
Local, Regional & Diversified Partnerships
• Diverse Suppliers must be at least 51% owned, controlled
and day to day managed by one or more of the designated
groups including minority groups and the Aboriginal
communities
• Supplies to be certified, competitive in price, provide quality
product/service, provide quality customer/technical support,
and meet other requirements to obtain and maintain
business
• Mosaic is committed to create awareness through the
database and is intended to be a powerful prospecting tool
for buyers
Awards and Recognition
K3 Headframe construction
Canadian Procurement Team
G.J. (Gord) Prince
Jason Rathgaber,
SCMP
Purchasing Manager
Belle Plaine, SK
(306) 345-8220
(306) 345-8300 fax
Curtis Mooney,
Director, Strategic Sourcing
(306) 523-2855
(306) 523-2871 fax
Our Procurement Mission:
SCMP
Purchasing Manager
Colonsay, SK
(306) 944-2282
(306) 944-2052 fax
Irwin Litzenberger
Purchasing Manager
Esterhazy, SK
(306) 745-4273
(306) 745-4493 fax
Wes Yantz
Storeroom Services Manager
Regina, SK
(306) 523-2992
(306) 523-2871 fax
Deliver goods and services at the
best value to meet business
requirements, always considering
safety and sustainability.
Our Procurement Vision:
We will be a truly global
Procurement team, effectively
leveraging People, Processes, and
Partnerships.
Jeff Mohr
Sourcing Manager
Regina, SK
(306) 523-2850
(306) 523-2871 fax
Jamey Wolfe,
SCMP
Sourcing Manager
Regina, SK
(306) 523-2852
(306) 523-2871 fax
Denise Stasuik,
Sourcing Manager
Regina, SK
(306) 523-2853
(306) 523-2871 fax
Tim Hartz
MRO Inventory Manager
Colonsay, SK
(306) 944-2598
SCMP
Questions?
We help the world grow the food it needs
For more information about Mosaic visit
www.mosaicco.com
We help the world grow the food it needs
Appendix
Mosaic ISO Certifications
Mosaic ISO Certifications