BHP's Local Buying Program

BHP's Local Buying Program

The Local Buying Program (Program) was established in 2012 as a means to encourage better relationships between our operations and local small businesses, build capability and capacity across the local supply chain and boost regional economic development in our host communities.

The Program makes it easier for business owners to competitively bid for supply opportunities through a streamlined onboarding, procurement and payment process, which includes 21 day payment terms. BHP has engaged a cost-neutral organisation, C-Res, to directly manage all transactional activities through the Program, while also providing ongoing support, engagement and mentoring of registered local suppliers.

The Program’s continuing success has seen it expand to include all of BHP’s core assets within Minerals Australia, including Queensland Coal, NSW Energy Coal, Olympic Dam and Western Australia Iron Ore.

Since its launch in 2012, more than 1,000 local suppliers have registered with the Program, and over 20,000 work packages and expenditure over A$230 million with local businesses have been approved. In FY2018, more than 8,000 work packages and expenditure with local businesses of more than A$94 million were approved. Businesses were paid within an average of 13 days from invoice.

NQ Car & Truck Rentals

NQ Car & Truck Rentals (a commercial and industrial vehicle rental business) has been an established part of the Mackay and Coalfields communities in Central Queensland for more than 16 years.

Tracie Combie, the owner of NQ Car & Truck Rentals, says that joining the Program in 2014 has given her the stability she needs to grow her company sustainably.

NQ Car & Truck Rentals has been awarded 36 work packages from our BMA and BMC operations, generating more than $920,000 in approved expenditure, and at the time of publication, employing four full-time workers in the company’s head office, up from one full-time and one trainee before joining.

The Program has given Tracie the opportunity to provide casual work for the aged, returning to work mothers and people with a disability, and enabled her to diversify and expand her fleet of trucks from 40 (mostly cars and small trucks) to 80 (which now includes buses, trailers and mine compliant vehicles).