SUPPLIERS Factors influencing procurement award decisions
In this phase of the Procure-to-Pay process, Gold Fields' Supply Chain personnel evaluate bid submissions and proposals received from suppliers based on a range of criteria, including (but not limited to):
Bids are ranked according to a weighted evaluation matrix. Suppliers are then shortlisted for further negotiation.
Gold Fields' preference is to engage with suppliers based on our standard terms and conditions. On occasion, suppliers propose alternative terms and conditions, which may introduce unacceptable risk and/or warrant further negotiation. Several rounds of negotiation may be required before the parties reach agreement on appropriate terms and conditions or clause wording.
Gold Fields' Supply Chain personnel typically benchmark submitted rates and pricing against established indices and other forms of market intelligence. If a company's pricing submission is over and above that which Gold Fields believes is reasonable for a given commodity or service, suppliers will be expected to substantiate the price differential; and if necessary, amend their pricing accordingly.
At Gold Fields, we typically preference our contracted suppliers, preferring to manage fewer vendors, minimise risk, and leverage our region-wide buying power; however, should a host community-based business, female-owned business, indigenous business, BEE compliant/HDP controlled entity or social enterprise meet the specified criteria, Gold Fields will consider the award of work to these entities.
Gold Fields encourages its suppliers and contractors to seek out appropriate host community, female-owned, Indigenous, BEE compliant/HDP controlled entities or social enterprises; and where possible, incorporate these businesses as suppliers within their own supply chains.