supply chain

It is Canyon Coal’s policy to promote through its centralised Procurement Department efficient, effective, ethical, legal and uniform planning for procurement of all goods and services, which enables Canyon Coal to function successfully.

Canyon Coal applies the following legislative principles to its supply chain management environment (SCM):

  • The Constitution of the Republic of South Africa of 1996

  • The Broad-Based Black Economic Empowerment Act No. 53 of 2003 (B-BBEE Act)

  • The King Report on Corporate Governance for South Africa of 2002

  • The Prevention and Combating of Corrupt Activities Act No. 12 of 2004

  • Promotion of Administrative Justice Act No. 3 of 2000

  • Promotion of Access to Information Act (PAIA) No. 2 of 2000

  • The Competition Act No. 89 of 1998

Canyon Coal’s SCM is executed in the manner that conforms to best-practice supply chain principles. The SCM system is continually reviewed and improved to ensure conformity with the above legislative principles while supporting and promoting black economic empowerment (BEE) goals in South Africa.

Canyon Coal’s 6 key objectives to implement and uphold the SCM policy and supporting procedures are to:

  • Create, maintain and continually improve a fair, equitable, transparent, competitive and cost-effective SCM system at the Company.

  • Ensure that decisions will be made within a framework of financial efficiency and in support of socio-economic imperatives in South Africa.

  • Deploy a uniform SCM policy, purchasing threshold values (cut-off values), tender procedures and templates and forms to manage all of the Company’s purchasing transactions effectively.

  • Negotiate for the correct item at the right time, in the right quantities, of the right quality and at the right price, from the best source and to the best overall benefit of the Company.

  • Award business on the basis of merit within the ambit of criteria set out in this policy and procedure document.

  • Set annual targets for and continually promote, accelerate and support the procurement of goods and services from B-BBEE suppliers in line with the B-BBEE Act and the Codes of Good Practice.

 

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