Local pilot takes Anglo American procurement to new level

Issued by EDS South Africa
Johannesburg, 30 Jul 2001

Anglo Platinum Corporation has launched an e-procurement project, effectively spearheading Anglo American plc`s drive into the world of e-procurement. EDS, PricewaterhouseCoopers and SAP are the consulting partners on the project.

PricewaterhouseCoopers, which has considerable global experience in implementing e-procurement solutions, and SAP with its new e-business platform, are the strategic solution providers for the pilot. Technology services outsource partner EDS is bringing its expertise in running electronic marketplaces on a global basis to bear on the project.

"The success of this project places us in a strong position to capitalise on the e-procurement market in SA as it grows out of its infancy," said EDS South Africa chairman, Michael Minassian. "EDS is one of only a handful of companies to have participated in an e-procurement project in SA."

The strategy

Anglo American plc is using the pilot to develop and test its future e-procurement strategy. Anglo Platinum -- the world`s largest producer of platinum -- selected SAP as its enterprise management system platform several years ago. The technical support of this function was outsourced to EDS. Anglo Platinum has worked closely with its IT partners to customise internationally proven systems to meet local conditions and the corporation`s particular needs.

Anglo American plc has, together with 26 other global mining houses, selected Quadrem, the international mining, metals and minerals e-marketplace, as the preferred marketplace to facilitate its transaction with suppliers. Quadrem also facilitated the necessary catalogue management and supplier adoption activities to make this possible.

According to Financial Director, Roeland van Kerckhoven, replacing conventional systems with a fully integrated electronic procurement system could: Reduce the cost of purchasing and reduce inventory costs through better management of supplies.

"E-procurement has received a lot of press lately," said Barry Davison, Chairman of Anglo Platinum. "It holds enormous promise, but it has also disappointed many people. We need to be sure we exploit the potential and avoid the pitfalls. This project has enabled Anglo Platinum to gain strategic e-procurement experience," he concludes.

According to Davison, a major benefit would be that "in terms of our supply chain, e-procurement would greatly reduce the lead-time required in order to have systems and infrastructure ready for any new project".

The technology

The two-part project has been driven from Anglo Platinum`s head office in Johannesburg. Said EDS account manager for Anglo Platinum, Magda Honey: "The first part of the project was to run a first pilot implementation for Anglo Platinum. Various other partners participated in the project, including representatives from other Anglo American companies, PricewaterhouseCoopers and SAP SA. International Anglo American Corporation companies were also represented."

Phase one was completed in October of 2000 when Anglo American plc became the first mining house to successfully to transact with Quadrem through its Amandelbult platinum mine in Northam. The second phase will be the implementation of a second pilot, using SAP`s Enterprise Buyer Professional module at Anglo Platinum. This will again involve linking Anglo Platinum to Quadrem. The first mine is to commence use of the new e-procurement functionality by the end of July 2001, while other business units will be added during the course of 2001 and 2002.

PricewaterhouseCoopers (PwC) provided the e-procurement strategy and business consulting skills required for the project, while EDS and SAP provided technical consulting, implementation skills and infrastructure support.

Said Gregory Nethercote, SAP Account Manager for Anglo Platinum: "Anglo Platinum, and this project in particular, are of strategic importance to SAP globally, and to SAP Africa`s local Mining Business Unit in particular. This implementation is a first for the mining industry, and shows the commitment SAP has put behind mySAP.com. This is a truly magnificent effort from all parties and illustrates the success of the Team SAP approach to combine SAP`s world-class solutions with the business and technical implementation skills of its consulting partners, PwC and EDS." mySAP.com Enterprise Buyer Professional is an integral part of SAP`s recently announced e-business platform.

EDS

EDS, the leading global services company, provides strategy, implementation and hosting for clients managing the business and technology complexities of the digital economy. EDS brings together the world`s best technologies to address critical client business imperatives.

It helps clients eliminate boundaries, collaborate in new ways, establish their customers` trust and continuously seek improvement. EDS, with its management consulting subsidiary, AT Kearney, serves the world`s leading companies and governments in 55 countries globally. EDS reported revenues of $ 19.2 billion in 2000. The company`s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Learn more at www.eds.com.

Anglo Platinum

The Anglo Platinum group is the world`s leading primary producer of platinum group metals (PGMs). The group comprises the holding company (Anglo Platinum) and its wholly owned subsidiaries: Rustenburg Platinum Mines (RPM), Potgietersrust Platinums Limited (PPRust), Lebowa Platinum Mines Limited (Leplats). Anglo Platinum is listed on the Johannesburg and London stock exchanges.

It is also represented on the Brussels Bourse by means of International Depository Receipts (IDRs). Its operations, comprising six mines, two smelters, a base metals refinery and a precious metals refinery, are situated in the Northern and North West provinces of SA. The operations exploit the world`s richest reserve of platinum group metals, known as the Bushveld Complex. Although platinum group metals are the primary products of these operations, base metals such as nickel, copper and cobalt sulphate are important by-products.

PricewaterhouseCoopers

Currently, PricewaterhouseCoopers manages outsourcing programs for more than 500 multinational corporations and other large organisations around the world -- leveraging the core process expertise of outsourcing professionals in finance/accounting, internal audit, tax compliance, applications process, procurement, human resources and real estate process.

PricewaterhouseCoopers (www.pwcglobal.com) is the world`s leading professional services organisation. Drawing on the knowledge and skills of 150 000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance. PricewaterhouseCoopers refers to the US firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organisation.

SAP

SAP is the world`s leading provider of e-business software solutions. Through the mySAP.com(R) e-business platform, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains.

Today, more than 13 000 companies in over 100 countries run more than 30 000 installations of SAP(R) software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP". (Additional information at http://www.sap.com)

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