Morupule mine develops supplier chain strategy

In efforts to empower citizen manufacturers, Morupule Coal Mine (MCM) is developing a solution to build an effective supplier chain strategy.

MCM Supplier Chain Development Manager, Resego Keipedile said the company is investing on technology and digital tools to enable easy transactions from its suppliers. “In the next three months we are going to have the benefit of the latest technology tools like the Artificial Intelligence. We are currently working on improving our business operations.”He explained that the company is also working on partnership in developing a supplier chain. The company has partnered with four financial institutions including CEDA, National Development Bank and other two commercial banks. Keipedile said over some time MCM has observed that most contracts with its suppliers were terminated due to lack of access to finance and lack of skills to manage finance. “We have partnered with four financial institutions and next year October we will open up for purchase order financing. We are still in discussion with Non-Banking Financial Institutions Regulatory Authority on this issue.” He highlighted that MCM commits to leverage its purchasing power to support and increase the participation of Botswana registered citizen owned companies in the provision of goods and services to MCM. The commitment to increase the participation of Botswana registered citizen owned companies is aligned to the provisions of the Mines and Minerals Act (section 12) which requires the holder of a mineral concession with safety, efficiency and economy.

In his presentation during a webinar on Supplier Chain Management hosted by MCM, Supply Chain Management Consultant, Duncan Jaramba encouraged MCM to consider long term relationships to accelerate citizen economic empowerment program through investing in local manufacturing industry as this will reduce the import bill and create employment. He urged local companies to improve their business operations and ensure they produce quality products that will be able to satisfy both the local and export market. “Whilst Generals and Field Marshals from the earliest times have understood the critical role of supply Chain, it is only in the recent past that business organisations have come to recognise the vital impact that supply chain management can have in the achievement of competitive advantage.”He explained that the focus of supply chain management is upon the management of relationships in order to achieve a more profitable outcome for all parties in the chain. “Logistics is essentially a planning orientation and framework that seeks to create a single plan for the flow of products and information through a business.”