It is Canyon Coals policy to promote – through a centralized Procurement Department – efficient, effective, ethical, legal and uniform planning for procurement of all goods and services required for the Company’s continued proper functioning
Canyon Coal applies the principles of the following to its supply chain management (SCM) environment:
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
SCM at the Canyon Coal 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 principles while supporting and promoting black economic empowerment (BEE) goals in South Africa.
The objectives of the implementation of 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.