capability statement q3 2021 - axisgroupinternational.com

Global Markets. Connected

Global Procurement & Supply

Capability Statement

Q3 2021

Axis Group International

1. Level 11, 125 St Georges Terrace

Brookfield Place

Perth 6000 Australia

T +86 138 0111 2112

E [email protected]

Dubai | Beijing | Shanghai | Singapore | Perth | Bangkok | Mumbai | Johannesburg

Axis Group provides market access solutions. For clients

that compete in complex international markets, our deep

capabilities, expertise and commitment translate into

business performance and profitability

• Global Procurement & Supply

• Market Expansion

• Corporate Advisory

www.axisgroupinternational.com


1. Axis Group International - Overview

2. Global Procurement & Supply

3. Key Clients & Case Studies

4. Key People

5. Thought Leadership

Agenda

4

Axis Group solves our clients’ complex globally connected supply chains through our specialised capabilities in Global Procurement & Supply, Market Expansion & Corporate Advisory

Overview of Axis Group’s Business Units

Axis Group Client

Suppliers Global Procurement & Supply

Better buying from global markets

• Integrated Sourcing & Supply• Global Procurement Services• Capital Project Procurement Solutions• Professional Resourcing

CustomersMarket Expansion

Business growth in international markets

• Market Insight, Planning & Decision Support

• Marketing & Brand Management• Business Development & Sales• On-the-ground Support & Execution

Corporate Advisory

• Strategic Advisory

Strategic Insight & Implementation Solutions

• Transaction Advisory

Insight and action despite cross-border complexity


Inbound Supply Chain Solutions Outbound Supply Chain Solutions

5

Comprehensive global procurement & supply solutions thatdrive down cost, assure quality, expedite schedules, mitigaterisk and ensure ESG compliance

Integrated Sourcing & Supply• Global sourcing• International logistics• Supply to site / distribution / delivery

Global Procurement Services• Procurement advisory• Strategic sourcing• Transactional procurement• Outsourced & managed procurement solutions

Capital Project Procurement Solutions• CAPEX procurement project management• Sourcing, procurement & transaction management• Quality management (QA/QC), inspection, testing &

expediting• Project logistics management

Professional Resourcing• Skills & resource gap analysis• Talent & skills identification• Placement & on-boarding management• Ongoing management and interaction


Integrated market expansion solutions for China and selected

key markets: we bring consumer goods, commodities & raw

materials, and technology & services to market, build brand

reputation and accelerate sales & market share

Market Insight, Planning & Decision Support• Market scoping & competitive landscape• Channels to market & key stakeholder identification• Commercial & regulatory environment• Partner due diligence

Marketing & Brand Management• Marketing strategy, planning & communications• Brand activation & management• Digital & social marketing services• Product / service education & representation

Business Development & Sales• Client / partner engagement strategy• Route-to-market & channel partner management• Sales management (lead development to PO)• E-commerce solution

On-the-ground Support & Execution• Export/import formalities• Warehousing & transportation• Asia team recruitment & training• 3PSP management (legal, registration agency, etc.)

Market Expansion

Trusted niche cross-border strategic and transactionadvice, with implementation support to underpingrowth and performance

Strategic AdvisoryStrategy formulation & implementation support todrive decision making, growth & profitability

• Research & analytics• Strategy formulation• Strategy implementation

Transaction AdvisoryIndependent corporate finance advisory& transaction origination services

• Origination services• Financial advisory• Due diligence• Transaction project management

Corporate Advisory

International Inbound

Supply Chain Solved

International Outbound

Supply Chain Solved

International Market

Complexities Solved


Our Global Procurement & Supply, Market Expansion and Corporate Advisory solutions in more detail

6

Axis Group International• Thrives in dynamic and challenging environment,

with focus on emerging and frontier markets• Emphasizes ‘actions and transactions’ through

strategy implementation• Collaborates with clients and provides integrated

solutions across their value chain• Has successfully driven cost down solutions and

mitigated supply chain complexities within several Chinese and international MNCs across various sectors and industries i.e. mining and energy, agri and agri-processing, power & infrastructure, transport, construction, manufacturing, engineering, packaging and healthcare

We leverage deep capabilities across our clients’ value chains – we have developed a unique experience curve

Extensive Supplier DatabaseMore than 8,000 identified suppliers, with over 1,800 pre-qualified

Comprehensive Quality ManagementComprehensive quality planning, Quality Assurance and Quality Control

Enable Cost-down SolutionsEnable cost-down and average savings of approximately 25% for customers (within a savings-range of 5-45%)

CAPEX Projects and OPEX/MRO SupplyExperienced in transacting in over 80 product categories across CAPEX projects and OPEX/MRO

Leader in Global Sourcing & ProcurementIndustries include mining and resources, industrial and engineering sectors, chemicals, packaging, healthcare, FMCG and general merchandise

ApproachesSophisticated methodologies, systems, processes and practices in place with an 18-year experience curve

Global ReachIntegrated, on-the-ground supply-hubs and infrastructure across China, the rest of Asia and Africa

Sourcing & Procurement• Global supply chain strategic

intelligence• Supplier identification, selection

and management• Contract terms management• Quality management and

expediting• Project and risk management

Logistics• Control towers• Logistics, supply chain and 3rd party management• Transportation, warehousing• Inventory management• Supply chain finance

Distribution & Supply• Distributor identification, selection and

management• Order management and processing• Kitting – product assembly,

repackaging, etc.• Demand management and

warehousing

• Global market intelligence• Decision support • Digital solutions for international supply chain

• Capital advisory• Team skills and resource augmentation

Suppliers Buyers

International Trading Capabilities

Client Value Chain and Our Capabilities

International Advisory Capabilities

7

Vision, Mission & Objectives

Mission

Vision Objectives


To be a leader in providing global market access for our clients

Shareholder & Stakeholder value

Operational Excellence

Customer Value

Financial Value

People / Community

Shareholder &

Stakeholder Value

Strategic Intent

8

Guiding Principles & Values

Axis Group operates in a manner consistent with the highest international professional and corporate

governance standards, and we respect the environment to assure sustainability

Having or showing insight and sensitivity, especially with respect to another’s beliefs and traditions

The way we carry ourselves, our attitude and etiquette form the way in which we engage with our clients

By developing strong relationships with our clients, our business is a brand they know and trust

An active approach in problem solving and thought leadership

The quality of bending easily without breaking

Ensuring that all aspects of the company put its customers' satisfaction first

Sustainable organizations strive to balance the triple bottom line of people, planet, and profit to achieve long-term success and viability

Quality is doing the right things right to meet or exceed the expectations of our clients

We believe in honesty, truthfulness and accountability for one's actions

Our Principles Our Values

Relationships

SolutionsProfessionalism

Cultural

Astuteness

Integrity & Ethics

Quality & Adding Value

Safety & Sustainability

Client Focus

Flexibility

9

Axis Group Sector Focus

Industry & Sector Experience

Extractive

• Agriculture and agri-processing

• Mining and energy

• Raw materials processing and beneficiation

Industrial and manufacturing

• FMCG/general merchandise (retail, apparel and footwear)

• Automotive, robotics, packaging and chemicals

• Power, infrastructure, transport, construction and renewables

• Heavy engineering, machinery, and light industrial manufacturing

Services

• Banking, insurance and other financial services

• Logistics and supply chain

• Information technology and communications

• Consulting, engineering and professional services

10

Axis Group is a subsidiary of Imperial

• Integrated freight management & contract logistics provider with significant scale, offering end-to-end solutions in key industries using technology as a differentiator

• Reduce time-to-market, improve customer service & mitigate risk

Logistics AfricaMarket Access

• Take ownership of inventory & responsibilityfor the full order to cash function

• Build complex route-to-market solutions that provide our clients & principals’ access to consumers across Southern, East & West Africa -mainly in healthcare & consumer industries

Logistics International

• Partner with clients to integrate logistics functionsinto their end-to-end supply chain

• Leading capabilities in chemical & automotive industries

• Specialised express distribution capabilities

Imperial at a glance

www.imperiallogistics.com

USD3 billion in revenue in 2020

Leading provider of market access & logistics solutions

Key industries -healthcare, consumer, automotive, chemicals

and industrial

25,000+ employees in 26 countries

Ranked amongtop 30 global

logistics providers

11

Johannesburg

Singapore

Shanghai

Mumbai

Dubai

Bangkok

Beijing

Delhi

Perth

Axis Group presence

Imperial presence & partnership network

Axis Group offices

Imperial and Axis Group have significant international presence, with focused solutions in our chosen markets, where Africa and Asia play central roles

Leading Australian Coal Mining Company

Conducted comprehensive spend analysis and assessed global & best cost country (BCC) sourcing potential for ~USD 400mn of spend to determine categories and commodities likely to drive cost reduction. Currently continue to implement cost reduction realisationprogramme




4. Key People


Agenda

14

Comprehensive global procurement & supply solutions thatdrive down cost, assure quality, expedite schedules, mitigaterisk and ensure ESG compliance

Integrated Sourcing & Supply• Global sourcing• International logistics• Supply to site / distribution / delivery

Global Procurement Services• Procurement advisory• Strategic sourcing• Transactional procurement• Outsourced & managed procurement solutions

Capital Project Procurement Solutions• CAPEX procurement project management• Sourcing, procurement & transaction management• Quality management (QA/QC), inspection, testing &

expediting• Project logistics management

Professional Resourcing• Skills & resource gap analysis• Talent & skills identification• Placement & on-boarding management• Ongoing management and interaction


Integrated market expansion solutions for China and selected

key markets: we bring consumer goods, commodities & raw

materials, and technology & services to market, build brand

reputation and accelerate sales & market share

Market Insight, Planning & Decision Support• Market scoping & competitive landscape• Channels to market & key stakeholder identification• Commercial & regulatory environment• Partner due diligence

Marketing & Brand Management• Marketing strategy, planning & communications• Brand activation & management• Digital & social marketing services• Product / service education & representation

Business Development & Sales• Client / partner engagement strategy• Route-to-market & channel partner management• Sales management (lead development to PO)• E-commerce solution

On-the-ground Support & Execution• Export/import formalities• Warehousing & transportation• Asia team recruitment & training• 3PSP management (legal, registration agency, etc.)

Market Expansion

Trusted niche cross-border strategic and transactionadvice, with implementation support to underpingrowth and performance

Strategic AdvisoryStrategy formulation & implementation support todrive decision making, growth & profitability

• Research & analytics• Strategy formulation• Strategy implementation

Transaction AdvisoryIndependent corporate finance advisory& transaction origination services

• Origination services• Financial advisory• Due diligence• Transaction project management

Corporate Advisory

International Inbound

Supply Chain Solved

International Outbound

Supply Chain Solved

International Market

Complexities Solved


Axis Group Global Procurement & Supply is one of our three core businesses

15

SupplyWe are your

supplier

ServicesWe optimise

your procurement

ProjectsWe support

your projects

PeopleWe strengthen

your team

Axis Group Global Procurement & Supply – Supply, Services, Projects, People

Comprehensive Global Procurement & Supply

Solutions

Comprehensive global procurement & supply solutions that drive down cost,

assure quality, expedite schedules, mitigate risk and ensure ESG

compliance

• Global Sourcing• International logistics• Supply to site / distribution/ delivery

• Procurement advisory• Strategic sourcing• Transactional procurement• Outsourced & managed procurement

solutions

• CAPEX procurement project management

• Sourcing, procurement & transaction management

• Quality management (QA/QC), inspection, testing & expediting

• Project logistics management

• Skills & resource gap analysis• Talent & skills identification• Placement & on-boarding

management• Ongoing management and

interaction

Integrated Sourcing & Supply

Global Procurement

Services

Capital Project Procurement

Solutions

1

2

3

Professional Resourcing

4

31

42

Cost-downQuality

Managed

Risks

Managed

Schedule

Expedited

ESG

Compliance

16

Multi-disciplinary

Consulting

Implementation

Outsourcing

Service

Provider

Supplier

Logistics & Supply

Chain

Technical & Quality

Management

Managing Quality

Excellence

Methodology-based

Cost Reduction

Supplier Database

Managing Standards

Managing IP

Negotiation Industry & Category Coverage

Capex, Opex& MRO

Organisation

8000+Supplier database

Experience

5000+Sourcing & procurement projects completed

1800+Pre-qualified suppliers

10-30%Average savings (range of 5-70%)

800-2000%Typical ROI

USD 21bnSpend analysed

One of the world’s largest integrated market access & logistics companies operating within

26 countries with 25,000 employees

An Imperial Company

Global Procurement & Supply Sourcing Hubs

Global Reach

Johannesburg

Singapore

Shanghai

Mumbai

Dubai

Bangkok

BeijingDelhi

Perth

Denver

Integrated Solutions

Analyse SourceQuality Manage

LogisticsManagement

Supply

Our solutions are truly integrated and span the entire end-to-end international value chain

from source to final supply

3500+Clients served

Logistics Capability

Comprehensive Global Procurement & Supply

Solutions

Comprehensive global procurement & supply solutions that drive down cost,

assure quality, expedite schedules, mitigate risk and ensure ESG

compliance

Integrated Sourcing & Supply

Global Procurement

Services


Solutions

1

2

3


4

• Local Knowledgeo Incorporate Local Knowledge

and Supply Market Intelligence into your low-cost country sourcing strategy to reduce Risk

• Speed to Value o Rebalance your overseas

sourcing risk profile with New Savings bringing genuine Speed to Value from harnessing Local Knowledge

• Remote Managemento Allows you hands-off Remote

Management of supplier appraisal, engagement and selection – and complex execution in remote low-cost country sourcing destinations

Cost-downQuality

Managed

Risks

Managed

Schedule

Expedited

ESG

Compliance

Global Procurement & Supply. Solved

17

We are your supplier - Our Integrated Sourcing & Supply offering in more detail

Global Sourcing1

• Global supply chain strategic intelligence

• Strategic sourcing

• Supplier identification, selection and management

• Contract terms management

• Demand and specification management

• Quality management and expediting

• Sourcing support

• Supplier relationship management

• Project and risk management

International Logistics2Supply to Site / Delivery / Distribution

3

• Order delivery and processing

• Kitting – product assembly, repackaging, etc. within origin country

• Supply management and warehousing

• Control towers overseeing integrated supply networks

• Inventory management

• Logistics, supply chain and 3rd party management

• Transportation, warehousing

• Warehouse management and control

• Customs clearance management

• Supply chain finance

Provide integrated buying solutions for a variety of

different industries

Improve logistics management across value

chains

Manage & identify qualified global suppliers from best

cost countries

Comprehensive Solutions

18

We optimise your procurement - Our Global Procurement Services offering in more detail

Procurement Advisory

• BCC opportunity assessment (savings potential diagnostic)

• Market intelligence and supply market analysis

• Benchmarking analysis

• Procurement maturity assessment

• Improve procurement processes

• Enhance procurement capabilities

• Procurement process tender support

• Supply chain risk assessment

Strategic SourcingTransactional Procurement

3

• Contract management


• Supplier risk management

• Site visits and supplier audits (commercial, technical, CSR and HSE)

• Quality management, QA/QC and expediting

• Installation and commissioning support

• Logistics management

• After-sales service support

• Supply chain risk mitigation

Outsourced & managed procurement solutions

4

• Strategic sourcing and transactional procurement (Outsourced International Procurement Office)

• Productisation (i.e. cost reduction programmes)

• CAPEX project procurement

• Global sourcing strategy formulation

• Category strategy development

• Supplier identification

• Supplier evaluation

• Supplier pre-qualification

• RFx process management

• Supply chain and logistics mapping

• Negotiation and contracting

• Rapid sourcing programmes

• Buying trips

• Supply chain risk mitigation

Realise cost savings, on-time delivery & ensuring

quality

Benefit from BCC sourcing with minimal

upfront investment

Enhance procurement capability & performance

1 2


19

Capex Procurement Project Management

• Project planning

• Project & risk management

• Global supply chain strategic intelligence

• Supply market analysis

• Contracting strategy

• Supplier performance evaluation process design

• Demand & specification management

• Risk & schedule management

Sourcing, Procurement & Transaction Management

Quality Management (QA/QC), Inspecting, Testing & Expediting

3

• Sample collection & testing

• Site visits & supplier audits (commercial, technical, CSR and HSE)

• Quality management & expediting; Fabrication quality assurance & control

• Inspection & testing

• 3rd Party, subcontractor & sub-supplier management

• Installation & commissioning support

• Warranty claims

• After-sales service support

Project Logistics Management

4

• Control towers overseeing project supply networks

• Logistics, supply chain & 3rd party management

• International freight management & customs clearance

• Transportation, warehouse management & control

• Inventory management

• Supply chain finance

• Document preparation

• Supplier identification, selection & management

• Negotiations; Sourcing optimization

• Contract terms management


• Operational purchasing management

• Supplier financial compliance monitoring

• Accounts payable processing

1 2

Provide strategic solutions to unique project

requirements

Improve project management across the

value chain

Effectively manage the project from sourcing to

logistics process

We support your projects - Our Capital Project Procurement Solutions offering in more detail


20

We strengthen your team - Our Professional Resourcing offering in more detail


Skills & Resource Gap Analysis

Talent & Skills Identification

Placement & Onboarding Management

3Ongoing Management& Interaction

41 2

• Client needs analysis

• Essential skills identification

• Resource gap analysis

• Resourcing strategy development

• Job description development (as needed)

• Selection and formal offer

• Placement and onboarding facilitation management

• Flexibility

• Payroll management

• Management of compliance and administrative issues

• Continuous support and management throughout the engagement process

• Strong relationship building to ensure continuity

• Identification, filtering and preliminary engagement of potential candidates

• Expectation and role clarification

• Compatibility assessment

• Candidate shortlisting for ‘best hire’ potential

• Client interviews

• Quick and effective turn-around time

Locate ‘gap’ areas & develop strategies to fulfill

needs

Achieve a shortlist of ‘best hire’ candidates

Place professional talent in key roles

Management & support throughout the end-to-

end process

21

Experience

Recognised as a leading, independent global procurement service provider for the mining and resources, industrial andengineering sectors

Established sourcing capabilities for a wide range of categories: chemicals, packaging, healthcare, FMCG and general merchandise

Achieved average savings of approximately 10%-30% for customers (within a range of 5-70% savings)

Managed sourcing transactions of almost USD 2 bn and supported special project procurement of USD 2 bn for clients over the past five years

Additionally, performed sourcing enquiries for clients targeting China/Asia in excess of USD 4 bn

Experience in transacting more than 80 product categories across CAPEX projects and CAPEX replenishment to strategic raw materials, production consumables and OPEX/MRO supply

Database of more than 8,000 identified suppliers, with more than 1,800 pre-qualified

Sophisticated methodologies, systems, processes and practices in place with a 18-year experience curve

Axis Group Global Procurement & Supply has a significant experience curve

Client Benefits

Cost-down

Quality

Managed

Schedule Expedited

Risks

Managed

22

Johannesburg

Singapore

Shanghai

Mumbai

Dubai

Bangkok

Beijing

Delhi

Perth

Denver

Axis Group Global Procurement & Supply Sourcing Hubs

• Executed work on 5 continents: Africa, Asia, Australia, Europe and the Americas

• Operations in Africa, South East Asia, North East Asia, South Asia, Australia, Americas and the Middle East

• Skill across sourcing hubs include: Analytical, Commercial, Technical, Quality, Logistics and Project Management disciplines

North East Asia coverage via offices in Beijing and Shanghai

Middle East and Africa coverage via offices in Dubai and Johannesburg

South Asia coverage via offices in Delhi and Mumbai

India Operations Support Platform: • Sourcing & procurement• Analysis• Spend analytics • Internal process support

China Operations Support Platform: • Analysis• Spend analytics • Internal processes• Global project management• Procurement advisory• Consolidation warehousing• Freight forwarding license

Americas coverage via liaison office in Denver

South East Asia and Australasia coverage via offices in Bangkok, Singapore & Perth

Axis Group delivers global procurement & supply solutions via strategically located international sourcing hubs

Global Reach

23

Axis Group Global Procurement & Supply: we support our clients’ complex end-to-end supply chain needs

Where we play

Cost Reduction Diagnostics

Supply Country Selection

Market Studies

Spend Analysis

Price Benchmark

Supplier Shortlisting

Technical Evaluation

Negotiating

& Contracting

RFx

Plant

Audit

Sample Arrangement

Audits/CSR/ Modern Slavery

Buying Trips

Quality Management

3rd Party Mgmt.

Inspection Expediting

QA/QC Buy & SellExports / Imports

Consolidation / Deconsolidation

Inventory Mgmt.

Delivery / Distribution


Global Supply Markets

• China & Northeast Asia

• India & South Asia• Thailand & South East

Asia• South Africa & Africa• Turkey, Poland &

Eastern Europe• Mexico & Latin

America

Client WarehousesDe-consolidation

Bonded

Warehouse

End User

Port/Airport

Bonded

Warehouse

International Freight

Bonded

Warehouse Port/AirportPort/Airport

Raw Materials

Packaging

Air & ocean;sourcing &

procurement

ComponentsSupplier /

Manufacturer ConsolidationQuality

Management

Capital Equipment

Finished Product

End-to-End Integrated SolutionsAxis Group Customer

What we doEnd-to-End Integrated Solutions

Integrated Solutions

24

Multi-disciplinary

Axis Group Global Procurement & Supply utilises a multi-disciplinary approach to bring together a unique value proposition

Consulting

Implementation

Outsourcing

Service Provider

Supplier

• Integrated international trading capabilities that simplify our clients’ worlds – we supply you

• We provide a professional services experience to support all your procurement activities & needs -from analytics to sourcing events, transactional procurement, quality, logistics & supplier management

• An outsourcing model that gives clients more options, control & flexibility

• Operational & implementation capacity that enables solid execution: on-the-ground, end-to-end

• Advisory & consulting acumen to support strategic intelligence, decision support, change & transformation

• Deep logistics & supply chain capabilities that connect worlds

• Deep capabilities and rich experience in technical & quality management

Our Procurement & Supply business is strategically positioned to bring together a unique value proposition –an amalgamation of key strengths & capabilities:

Flexible Model -Axis Group as

supplier or service partner

Flexible Engagement –

Plan, Do, Collabo-rate > Strategic,

Practical, Extended Partnership

Logistics &

Supply Chain

Technical & Quality

Management

Extended SpecialisedCapabilities

25

Why clients work with us? Excellence, Trust & Performance

Methodology-based

18 years of continuous improvement; best-in-

class

Supplier Database

Over 8,000 suppliers in DB; over 1,800 pre-qualified; over 5,000

projects

Managing Quality

In-house technical team and experienced in 3rd

party management; project managing

leading quality and inspection firms

Managing Intellectual Property

Risk management around IP

protection and transgression

Capex, Opex & MRO

Experienced in large complex Capex project procurement, Capex replenishment and

Opex & MRO

Organisation

Management layer line-of-sight with analytical, commercial, technical

and logistics experts to ensure sound project /

risk & relationship mgmt.

Cost Reduction

Average realized savings of 10-30%; adjusted for risk mitigation cost and

warranty claims

Industry & Category Coverage

Clear sector expertise, i.e. mining; steel;

industrial; chemicals; packaging; healthcare.

Experience in Opex/MRO, components, finished products and services

Managing Standards

Experienced in managing standards and conversion

issues

Negotiation

Experts in negotiations having negotiated over USD 2.5bn in contracts

Excellence


Integrated (end-to-end) logistics solutions (including inland

transportation and international freight arrangement and

management)

26

Methodology-based

ExtensiveOccasional

Field Work:

Global Supply Market Assessment

Multi-Country / Cluster Focus

BCC Country / Cluster Selection

• Assessment of long-term indicators such as−Macro-economy −Market size (production, growth)

−Trade balance (growth, destination, etc.)

−Trade incentives/barriers (tariffs, rebates,

−Others

• High-level analysis on the basis of −Manufacturing competitiveness

−Logistics infrastructure

− Issues and tends, and risk assessment

−Others

• Evaluation of selected markets on the basis of −Supplier availability−Supplier capability (standards, product range, etc.)

−Supplier experience (brand, exports)

−High-level price assessment

Country / Cluster 1

Country / Cluster 2

Country / Cluster 3

Phase 1: Country Analysis

Universe list of 200 countries Shortlist of 10-15 markets Shortlist of 3-5 markets

Phase 1: Country Analysis

27ExtensiveOccasional

Field Work:

Universe list of 50 countries Shortlist of 10-15 markets Shortlist of 5 markets

Op

erati

on

al P

ro

cu

rem

en

t P

ro

cess

An

aly

sis

Supplier Analysis

1 2 3 4

Understanding product

specifications

Supplier identification

and universe list

compilation

Supplier evaluation

and long list

RFI, supplier

pre-qualification

and shortlist

Supplier Engagement

5 6 7 8 9

RFQ, RFP and

RFT process

Site visit and

supplier auditContracting

Commercial and

technical evaluationNegotiation

Supplier Process Management10 11 12 13 14

After sales

service support

Contract

administration

Quality

Management (QA/QC)

and expediting

Logistics

coordination

Installation and

commissioning

support

Procurement & Supply1 2 3 4

Procurement Logistics Distribution Supply

Bu

y &

Sell

Phase 2: Procurement Methodology

Phase 2: Procurement Methodology

Methodology-based

28

Supplier Analysis Supplier EngagementSupplier Process

Management

1. Understanding product specifications to establish the feasibility and potential of the undertaking, culminating in initial cost models

and target lists

2. Supplier identification and universe list compilation to select optimal project methodology and compile universe list of all potential

suppliers

3. Supplier evaluation and long list to critically assess the strengths and weaknesses of suppliers with the application of high-level

filters, especially verifying their export performance and track record, product fit and quality standards, among other criteria

4. RFI, supplier pre-qualification and shortlist to test identified suppliers by means of detailed questionnaires and probing site visits,

which are conducted in collaboration with clients

Axis Group Service Delivery Platform in detail (I)

Supplier Analysis

Methodology-based

29


Management

Axis Group Service Delivery Platform in detail (II)

Supplier Engagement

Methodology-based

5. RFQ, RFP and RFT process to conduct a competitive bidding process to obtain quotations while controlling the quality of deliverables

6. Site visit and supplier audit to inspect the ‘standard operating procedures’ of manufacturing sites based on technical specifications, by

expedited sample testing and by ensuring compliance with international quality standards; areas of specific interest during supplier

audits are commercial, technical, CSR and HSE conditions

7. Commercial and technical evaluation to ensure that the offer and specifications completely correspond with client needs

8. Negotiation to attain the best offer from the supplier

9. Contracting to frame contract parameters, while identifying potential risks and external factors, and to help expedite the signing process

30

10. Contract administration to assist the client with purchase orders, and to maintain effective communication between all parties while

regularly checking manufacturing progress and monitoring the payment process and transaction flow

11. Quality management (QA/QC) and expediting

• To assign a working group of experienced, in-house quality management specialists

• To conduct quality management to meet client’s specifications and international quality standard requirements (ISO, etc.)

• To identify a suitable service provider as Axis Group that can conduct comprehensive third-party management

12. Logistics coordination to engage either with Axis Group’ own service partners with whom we have established relationships and are able to

obtain favourable rates, or to manage the client’s shipping agencies

13. Installation and commissioning support to ensure effective equipment installation by having specialised staff members monitoring on-site

14. After sales service supports clients’ needs with regard to resolving after sales issues on quality, logistics, contracting, etc.


Management

Axis Group Service Delivery Platform in detail (III)

Supplier Process Management

Methodology-based

31

We have a robust cost reduction methodology focused on analysis and realisation

Note*: Saving percentages are indicative only

25+%* savingsHigh Impact - Low

Risk

Wave 1

Wave 2

Wave 3

15 – 25%* savingsMedium Impact -

Medium Risk

5 – 5%* savingsMore Challenging

+

-

++

+++

-Savings

Risk

Savings RealisationSavings Opportunity Assessment & Diagnostic

Steps Objective Criteria Deliverables

• Define and prioritise categories and commodities leveraging existing spend information

• Category / commodities

• Volumes / values

• Suppliers• Plants• Others

• Pareto analysis and category ranking

• Determine what is the China sourcing potential for prioritised product categories

External to the firm:• Export

performance• Supply market

factors• Costs factors• AGI experience

• China competitiveness analysis

• Category prioritization

• Prioritise further product categories based on the pros and cons for a shift to China

Internal to the firm:• Product

requirements• Supplier factors• Stakeholders

analysis

• Category focused workshops and category profiles

• Category prioritization

• Final selection of commodities based on estimated savings and realization potential –quick wins

• Cost savings potential

• Easiness / realization

• Savings –realization matrix

• Final commodity selection

Spend Analysis

Category Analysis 1(BCC Sourcing

Potential)

Category Analysis 2 (Internal Readiness)

Commodity Selection (Cost Savings

Estimation)

High Level Project Methodology

Supplier Process

Management

Supplier Analysis

Supplier Engagement

Cost Reduction

32

Prequalified Suppliers Database (I): Axis Group follows a robust and customisedmethodology in selecting appropriate and reliable suppliers

Expression of Interest

Request for Proposal

Long-Term Contract

Database Management

Suppliers qualified for RFP based on:

• Capacity

• Techniques

• Manufacturing practices

• Track records

Suppliers approved to supply based on:

• Testing of samples

• Offers

• Meeting standards & customer specifications

Ongoing supplier management includes:

• Meeting compliance

• Measuring performance

• Ongoing sample testing

Database + Research

Methodology/Selection Procedure

Supplier Database

33

Axis Group Supplier Database Overview

Prequalified Suppliers Database: Axis Group maintains and updates a database of pre-qualified suppliers across various categories and products

Mining Related

80%

Others

20%

Breakdown of Axis Group’s SupplierDatabase

8,000 +SuppliersIdentified

3,000+Shortlisted

1,800+Pre-

Qualified

Supplier Database

34

Our Approach to Quality Management

Quality Management: Axis Group takes a holistic approach to quality management - to deliver on clients’ expectations and specifications on

Procurement Manufacturing Service

Axis Group Quality Management

Supplier Quality

• Supplier audit (commercial, technical, CSR and HSE)

• Failure analysis

• Supplier corrective measures

• Supplier database management

Manufacturing Quality

• Due diligence / inspections

• CSR and HSE inspections

• Standards testing

• Equipment calibration

• Documentation control

• Conformance testing

Customer Service Quality

• Client issues & complaints management

• Client needs and specifications management

• Documentation control

Internal + 3rd Party Management

Managing Quality

35

Axis Group Standards Management Flow

Standards Management: Axis Group leverages experience and expertise in managing standards issues across the entire engagement process

Customer Specification

Analysis

• Determine and verify the clients’ needs and specifications

• Check for the required standards to meet the clients’ specifications i.e. ISO

• Establish relevant standards

Potential SupplierIdentification

• Locate and shortlist potential suppliers utilising Axis Group supplier database and experience

• Engage with the customer and discuss the product, specifications, and standards

• Check and confirm standards adherence

Standard Testing&

Confirmation

• Sample test for standard requirements

• If the test is successful, engage in further discussion for procurement procedure and in negotiations

• If the test is unsuccessful, go back to Potential Supplier Identification and repeat process

Managing Standards

36

Intellectual Property Management: Axis Group provides services and solutions in a multi-faceted manner to protect clients’ assets including intellectual property

IP Risks Analysis• Evaluate potential threats to the intellectual property of the client

• Analyse to mitigate the risks involving intellectual property

Reliable CounterpartyIdentification

• Identify and engage with reliable counterparties based on Axis Group experience

• Discuss and address issues involving intellectual property protection measures

Overall Risk Management

• Deal with the top law firms in dealing with intellectual property issues

• Adopt thorough documentation controls

Monitoring• Keep track of potential threats to intellectual properties to protect the client

• Include intellectual property controls in evaluating counterparties

Our Approach to Intellectual Property Management

Managing IP

37

Negotiation: Axis Group’s expertise in negotiation enables the establishment of efficient and value-adding strategic commercial solutions

• Provide the benefits of a best-in-class negotiation and procurement process with strict

process discipline

• Negotiate towards the best prices, payment terms, discounts, price protection clauses

and other value-adds available in today’s market

• Strive for a balance between the lowest price with the specifications matched for the

client and vendor needs such as supply chain transparency, improved forecast and price

reliability and rewards for the value delivered

• Leading Supplier Negotiations

• Strategic Sourcing Processes

• Improvement of Supplier Terms and Conditions

• Global Pricing Visibility

• Pricing and Volume Targets

Key Deliverables

Our Approach to Negotiation

Negotiation

38

Axis Group provides customised logistics solutions to drive down cost and optimise value, leveraging Imperial’s capabilities and footprint

“Integrate, optimise and synchronize activities of various parties/activities in the value chain”

Single point of contact

Improved expediting

Improved visibility

Leveraging industry best practice via Imperial and

partner networks

Centralisedprocurement and

supply chain execution enabling

collaboration between all parties

involved


Logistics Capabilities

39

Axis Group works across industries but focuses where our capabilities add value

Mining

Energy

Construction

Metallurgy Healthcare

Packaging

General Merchandise/

FMCG

Engineering

Oil & Gas

HME

Manufacturing

Chemicals


40

Industrial, Construction & Manufacturing Mining & Energy

Axis Group has significant experience in sourcing more than 80 product categories from China and other ‘best-cost’ countries

Mining Operations

• Electric rope shovel

• Load haul dump (LHD)

•Underground roof support

• Base plate (Dragline)

• Truck cylinder

•Mechanical components

•GET

•OTR & general tyre

•Drill bit

•Drilling rod

•Drilling boots

• Rock drill

• Piping

•Drilling machine

• Bulldozer

•Grader

•Wheel loader

• Axial ventilator/fan

• Filter element

• V-belts

•Others

Construction Materials & Equipment

• Cement

• Steel and structural products

• Construction tools

•Machinery

• Building materials

• Tanks, vessels & internals

• Rail equipment & components

• Electrical cables & wires

Manufacturing

•Gears box

•Shafts

•Bolt Nut Plate

•Pig Iron Roller

•Heavy Machinery Parts

•Spare parts

•Hydraulic equipment

•Batteries

•Engines

Materials Handling

• Stacker reclaimer

• Conveyor belt

• Pulley

•Wagon tippler

•Mil liner

• Bell & Hopper

• Rollers

• Pipes

•Others

Processing

• Crusher / Breaker

•Grinding mill

• Thickener / Mixture

• Filter press

• Cyclone

• Furnace

• Electrodes

• Slag pot / Ladle

•Heat exchanger

• Cooler

• Cooling tower

• Screener

• Flotation equipment

• Valve

• Pump

•Grinding rod

•Oxygen lance

• Refractory brick

• Coal washing machine

•Grinding media

•Grinding rod

•Oxygen lance

• Refractory brick

• Coal washing machine

•Grinding media

•Magnetite / Fesi

• Lime

• Liners

• Steel ball

• Blower

• Air compressor

• Boiler

• Conveyor belt

• Pulley

•Wagon tippler

•Mil liner

•OthersPackaging

• Carton for Food Industry

• Plastic rigid tubes

• Plastic box

• Tin boxes

• Food Jars

• Liquid Paper Board

Chemicals

•Sodium hydro Sulphate

•Amberlite

•Frothers

•Sulphuric acid

•Collector agent

•Additives

•LAB

•Other chemicals

Note: Selected Category Capability


41

Product Experience – Selected Examples

See key clients & case studies for more examples


Grinding mills Hydraulic excavator Trucks Draglines Cranes Centrifuges

Flotation equipment Magnetic separators Compressors Metal processing machinery & parts

Filters

Piping Wire Gensets Bearings Electric mining shovel

Heating & heatingexchangers

Cables Substations Power tools

Crushers

Ground engagement tools

Transformer

Containers

Kiln shell Magnesium ingots Modularized processingunit

Chemicals Liquid paper board Healthcare products

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42

Tendering or Sourcing

Contract Award

Contract Management

StrategicProcurement

Planning

Operation & Maintenance

Complex Capital Project Procurement: Axis Group drives value across the project value chain – for project owners’ teams, PMC’s and EPC/M’s

• Tailored methodology for unique project specifications across categories

• Universe list of suppliers evaluated for each project as per requirements

• Site visits, supplier audits, commercial and technical evaluation result in successful negotiation and contracting with suppliers

• Clearly defined processes for cost escalation estimation, deviation from initial budgets & schedules and claims management

• Assuring accurate total cost of ownership (TCO) is calculated

A dedicated Capital-Project Procurement Partner

Design & Engineering

Construction

Procurement

Cost

Influence

Time (Project Lifecycle)

Axis Group Involved Early for Strategic Suppliers

100%

0%

Planning & Feasibility

Construction Cost

Ability to influence 100%

0%

Startup

• Capex Procurement Project Management

• Sourcing, Procurement & Transaction Management

• Quality Management (QA/QC), Inspecting, Testing & Expediting

• Project Logistics Management

Axis Group Core Project Procurement Solutions

Axis Group Support

Across the Full Capital

Project Procurement

Process

ProcurementRequirement

Definition

BidEvaluation &

Selection

Capex, Opex & MRO

43

Organisation Structure: Axis Group Global Procurement & Supply

Quality, Technical

(QA/QC, Expe-ditors, etc)

CEO

Managing Director

Inspection Engineers

Expeditors

Commercial

Procurement Specialists

Logistics

Logistics Coordinators

Strategy & Analytics

Strategy Consultants

Research Analysts

HR & Administrative

Support

HR Specialists

Admin staff

Project Administrative Support

Finance

Financial Specialists

Accountants

BCC Analysts

Gro

up

Man

ag

em

en

tP

ro

ject

Delivery

UAE,

Chin

a,

India

, Sin

gapore

, Thailand,

Austr

alia,

South

Afr

ica

Senior Engineers

GM Global Procurement &

Supply

Spend Analytics Partner

Specialist QA/QC & Inspection JV

Strategic Logistics & SC Partner

Project Management

Core Procurement Team

Support Functions

Partners

BCC Procurement Specialists

Global Sourcing Hubs

Beijing

Knowledge Management

Shanghai

Singapore

Bangkok

Delhi

Mumbai

Perth

Johannesburg

Denver

Dubai

Organisation

Contract Specialists

Leading Oil and Gas Exploration & Production Company

Provided comprehensive procurement solutions including identification, evaluation and selection of key Chinese manufacturers for OFSP Modules, including undersea suction piles and complex equipment




4. Key People


Agenda

46

Selected Clients across our businesses and sectors

Global Procurement & Supply Market Expansion Corporate Advisory

Mining & Resources

Construction & Engineering

Manufacturing

Other

47

Selected Clients around the world

Solid China and Asia position:• Substantial networks/relationships• Strong brand equity• Systematic methodologies and approach• Extensive supplier database and

supplier relationships• Category management knowledge• Mining, energy, EPC, industrial, steel,

chemical, packaging, healthcare category knowledge

Deep brand recognition and client community formation in core markets

Significant scope in new markets for development

• We have served small-med-large size companies, that are local, regional and global

• Our primary focus is mid-market or regional players –listed or large privately held enterprises

• Secondary - global players where Axis Group can address opportunity

• We started in SA and China, expanded to Asia, Australia, then Latin America and now the US/EU

48

Selected Procurement Clients Africa

Mining & resources

Construction & engineering

Manufacturing

Other

R. G. Maintenance

Services

49

Mining & resources


Manufacturing

Other

Selected Procurement Clients Australia and China / Asia

Australia China / Asia

50

Mining & resources


Manufacturing

Other

Latin America Other Regions

Selected Procurement Clients Latin America and Other Regions

51

Loaders Hydraulic excavator Trucks Draglines Cranes Centrifuges

Flotation equipment Magnetic separators Compressors Metal processing machinery & parts

Filters

Piping Wire Fittings Bearings Cement

Heating & heatingexchangers

Cables Substations Power tools

Crushers

Ground engagement tools

Transformer

Containers

Product Experience Examples (I)

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52

Product Experience Examples (II)

Manufactured trailers

Grinding mills Electric mining shovelGensets

Substations

Gensets


53

Girth gear

Kiln support roller shaft

Kiln shell

Mill headKiln shell

Support roller

Product Experience Examples (III)

54

Product Experience Examples (IV)

Superheaters

Grinding media

Boiler shellsThickeners

Pumps Magnesium ingots

55

Product Experience Examples (V)

Modularized processing unitSuction piles for FPSO under assembly

Interpass absorption

56

Product Experience Examples (VI)

Round bars Flat barsHollow bars

Pipes Angle steel Rails

57

Product Experience Examples (VII)

Caps Shoe coversAbdominal swab

Diapers GlovesDisposable underpad

58

Product Experience Examples (VIII)

HDPE closure Liquid paper board Film

Soda ashBread bag PET

59

Product Experience Examples (IX)

Cookware Apparel Small domestic appliances

PPE Batteries Lamps

Largest Packaging Company in Africa

Providing ongoing comprehensive procurement solutions including supplier database and tender support - identification, evaluation, selection and order placement with Chinese & global suppliers for equipment, finished and semi-finished products (across glass, metal, paper and plastic categories)

61

Capital Procurement Project

Large Iron Mining Company

Outcomes

• The Client attained a better understanding of the sourcing opportunity in Asia

• The Client was able to identify which product packages are best sourced from which Asian countries

• The Client learned more about the various pitfalls that can happen with Asia procurement and can now plan ahead to avoid them

Organisational Setup

• Axis Group: 1 Project Manager, 2 Project Consultants, 1 Senior Technical Engineer, 1 Senior Project Advisor, 1 Procurement Specialist, as required

• Client: 1 Project Manager, 1 Technical Engineer

Key Risks andIssues Addressed

• Difficulty of getting interviews with project managers that had worked on foreign mining projects with significant Chinese contractor participation that were willingly to talk about their experience

Lessons Learned

• China was the only country that Axis Group identified as being a suitable supplier for all identified packages. The supplier base and scale of Chinese production is unrivalled at the moment

• Japan and South Korea are good for many product packages as they are renowned for their quality. They remain viable sourcing destinations for more complex machinery packages


Type Heavy machinery, steel products and consumables

Services Research and analysis, procurement feasibility assessment, supplier shortlisting

62

International Procurement Office (IPO) 1/2

Large Global Leading Mining Group

Product Category

• High-level spend analysis & 32 categories

• Products present a wide range of technical complexity, from simple chemicals, industrial/production consumables (complicated components), to key production equipment

• Among the 32 categories, simple products accounted for 15%, complex products accounted for 22.5% and the rest (62.5%) were industrial or production consumables

Project Resources

• Axis Group: Project Manager, Procurement Specialist, Procurement Engineers and Procurement Assistant

• Client: Project Manager, Contract Specialists and Site Engineers

Axis Group Capability/Value

• Mature BCC procurement methodology and procedures

• Balanced team structure with analytical, commercial, technical and logistics skillsets

• Category knowledge accumulated for 14 years

• Experience in managing comprehensive projects (multiple categories and stakeholders/countries)

• Multinational culture that mitigates gaps in communication and mindsets between suppliers and clients

Outcomes

• More than 500 BCC suppliers have been approached via RFI/RFQ/RFT

• More than 50 BCC suppliers have been deeply engaged, technical or commercial clarification

• 10 suppliers have been visited by the project team (either by clients together with Axis Group or Axis Group independently)

• 5 Chinese suppliers have received orders or trial orders from client

Type Long-term international procurement office (IPO) for BCC procurement

Services Research and analysis, procurement feasibility assessment, technical clarification,specification development, supplier identification, evaluation & shortlisting, RFQ (issuance, expediting, clarification and analysis), sample arrangement, contract negotiation (payment terms), plant audit and delivery management

IPO

63

International Procurement Office (IPO) 2/2

Large Global Leading Mining Group

Outcomes

• For simple products like chemicals, there is approximately 5 - 10% saving

• For industrial and production consumables, there is approximately 15 - 20 % cost saving

• For complex components and equipment, the cost savings potential is approximately 20 -40%

• For project procurement (Capex), the cost saving will be above 40%

OrganisationalSetup

• After a comprehensive strategic sourcing phase, the project is now gradually moving into a transaction phase, with a large amount of cost saving to be realised in the coming months/year

• 1 order has been delivered to the client; 5 orders are under production; 2 trial orders will be ready for dispatch and 2 orders under final approval process. Samples for testing at authorised lab being couriered


• 3 operations (sites) in 3 continents have been actively involved in this BCC sourcing process, and another 3 operations are being encouraged to participate as well

• More product categories will be continuously added to the procurement product list for identification of more cost savings, especially between 2017 and 2020

Type Long-term international procurement office (IPO) for BCC procurement

Services Research and analysis, procurement feasibility assessment, technical clarification, specification development, supplier identification, evaluation & shortlisting, RFQ (issuance, expediting, clarification and analysis), sample arrangement, contract negotiation (payment terms), plant audit and delivery management

IPO

64

Spend Analysis & Procurement of Category Suitable for China Sourcing

Australia–based International Coal Mine

Outcomes

• Based on the spend data provided by client, Axis Group conducted a comprehensive spend category analysis

• Four categories were finally selected, and trial orders have been placed

• More categories are being considered for China sourcing


• Axis Group: 1 Senior Manager of the department, 2 Project Managers, 1 Procurement Specialist, 1 Procurement Engineers, 1 Procurement Specialist, 1 Analyst

• Client: 1 Senior Manager, 4 Technical Advisors


• Large number of products in spend data; Axis Group selected the categories most suitable for China sourcing

• Client was not able to provide very clear specifications; Axis Group developed and further required clarified specifications

• Insufficient technical information made communication with supplier very difficult; Axis Group managed to collect the relevant information to facilitate successful communication

SupplierCompetitiveness

• Chinese suppliers are technically capable

• Attractive cost saving can be achieved

• Excellent lead time

Type Coal mining equipment (conveyor belt) and consumables

Services Feasibility study, supplier shortlisting & indicative pricing, RFP process, contract negotiation, plant audit trip, supplier registration & facilitation of first order

Strategic Sourcing

65

Strategic Sourcing of Selected Focus Categories/Products

Leading Global Private Coal Company

Categories

• Mining consumables (conveyor belt and idlers, screen decks & panels, drill bits, vibrating screen, slurry pump , flocculant, pipe steel & galvanized, PE pipes)

• OEM parts (excavator buckets, cylinder, track undercarriage parts, hub assembly, rope –dragline, chain UG)


• Axis Group: 1 Project Manager, 2 Procurement Engineers, 3 Procurement Specialists, 1 Procurement Analyst

• Client: 1 VP, 1 Procurement Head, 1 Senior Manager, 1 Mechanical Engineer, 3-4 Operation Managers (ad hoc support)


• No specs available from client on OEM parts. Axis Group managed to identify suppliers who already developed previous specs

• There was some resistance from the end user for bits. Chinese suppliers sent samples to mine and client is happy after trial

• Client didn’t have the specs for flocculant and the supplier provided samples according to their understanding. Testing on-going


• China is a leading producer and exporter of almost all of the identified products, has a good supplier base

• Client can potentially achieve cost savings of 10-40% compared to local suppliers

• Pricing from China is proving to be less competitive for some products (PE pipes and excavator buckets).

Strategic Sourcing

Type Mining consumables, OEM parts

Services Product research and analysis of existing spend, scoping and selection of focus categories, supplier identification and evaluation, supplier shortlisting, RFQ, negotiation and contract facilitation, China trip, order placement facilitation (on-going project)

66

Sourcing of Conveyor Belt, Idler, Miller Liners & Pipes

Leading Australian Energy Company

Outcomes

• Axis Group shortlisted 9 suppliers for 4 categories. 3 suppliers for 2 categories were selected for trial orders

• Client achieved cost savings for all 4 categories – 2 for direct sourcing, and another 2 for local sourcing with lower costs

• Exploration for more categories is ongoing


• Axis Group: 1 Project Manager, 1 Procurement Specialist , 1 Assistant Procurement Specialist; 1 Procurement Engineer

• Client: 1 Project Manager (internal and Axis Group coordination); 3 Senior Managers (plant audit trip and ongoing communications)


• Difficulties in matching specific technical requirements due to different standards in Australia and China. Eventually managed to resolve the issue

• Chinese suppliers’ weak handling of English documents was mitigated by document support from Axis Group Suppliers were more aggressive to complete the transaction while client wanted to first complete a comprehensive assessment. Axis Group managed expectations and relationships


• China is a leading producer and exporter of steel products, has a good supplier base with a wide variety of steel products

• Client achieved cost savings of 30-40% compared to local suppliers

Strategic Sourcing

Type Consumables for coal mine and power station (mill liner, pipes, idlers and belts)

Services Fast sourcing, supplier shortlisting & indicative pricing, RFP process, contract negotiation, plant audit trip

67

Sourcing of Conveyor Belting

Leading Gold Producer

Outcomes

• Axis Group shortlisted 3 suppliers capable of complying with client specifications, 2 were selected for trial orders

• Axis Group assisted client with contracting suppliers for trial orders and worked with a 3rd party inspection company to ensure product quality for trial orders


• Axis Group: Procurement Specialist and Assistant Procurement Specialist, supported by Procurement Engineer, as needed

• Axis Group coordinated inspection and reports by 3rd party inspector, as well as all technical and commercial inquiries before and during trial orders


• Client-appointed 3rd party inspection company was unprofessional; improper inspection led to a conflict situation

• Axis Group was able to resolve the conflict successfully, client was advised to re-test, and the product was finally accepted and the client was satisfied


• China is a leading producer and exporter of belts, has a good supplier base with a wide variety of conveyor belting products

• Client achieved cost savings of 35-50% compared to similar European products

Strategic Sourcing

Type Consumables

Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, and order placement

68

Procurement of Industrial Products

Leading Australian EPC

Outcomes Organisational SetupKey Risks and

Issues AddressedSupplier

Competitiveness

• The procurement transaction was carried out in the 2nd half of 2013 with a PO value of ~AUD 5 million

• China procurement strategy has expanded from only cable to other products such as stacker and structural steel

• Axis Group: 1 Project Manager, 1 Procurement Specialist, 1 Procurement Engineer and 1 Assistant Procurement Specialist

• Client’s Group Procurement Dept. (1 Leading Category Manager and 1 Category Manager) and 2 members from the project team

• Difficulties to match required raw materials and Australian technical standards slowed down the engagement process. Axis Group facilitated a technical clarification session to evaluate the alternatives

• Chinese suppliers’ resistance on agreeing to some commercial terms highlighted the gap between how business works in China and the client’s expectation. Axis Group assisted in reaching a compromise

• Chinese suppliers’ weak handling of English documents was mitigated by document support from Axis Group

• China offers a 10-14% price advantage for cables. The eagerness of developing the overseas market forces Chinese suppliers to commit in quality and prioritise Axis Group’s client as a key customer

Strategic Sourcing

Type Infrastructure: power, instrument, data and OPGW cables

Services Research and analysis, procurement feasibility assessment, estimate potential cost savings, identify specific opportunities, supplier shortlisting, negotiation and contract assistance, plant audit trip

69


Global Ferroalloy Player

Outcomes

• Order value of over USD XX million, 2 kilns and 2 mills

• Delivery to site 100% complete

• Over 30% savings achieved compared to alternative local offerings


• Axis Group: 2 Project Managers (PM, GM), Senior Project Advisor, On-site supervising Engineer, Senior QA inspector, Procurement Specialists as required

• Client’s PM office (no EPCM involvement), Engineering Consultants, Chinese supplier and sub-suppliers, 3rd party inspection company, 3rd party logistics management company


• Design and specification changes managed by systematic review meetings and document controls

• Poor supplier documentation management / control system –Axis Group assisted in improving the system

• Suppliers lack experience of DDU delivery – Axis Group put together a 3rd party solution

• Quality and scheduling risks mitigated by shop floor supervision


• Chinese suppliers offer 20-35% cost savings but hands-on quality management and expediting is a must

• Good OEM supply base for international vendors, excellent facilities and good design capabilities available

• Short lead-time

Transactional Procurement

Type Heavy rotating equipment, structural steel, and electrical and other capital equipment packages

Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, supplier and third party management, QA/QC, expediting and logistics arrangements

70

Sourcing of Pulley and Roller for Conveyor Equipment

Leading Australian Mining Company

Outcomes

• Axis Group shortlisted 4 suppliers for pulleys and rollers, 1 supplier for rubber linings

• Client achieved cost savings for the pulleys and rollers via direct sourcing

• Assist client in sourcing approximately 25 orders consisting of more than 60 pulleys and rollers


• Axis Group: 1 Project Manager, 1 Procurement Specialist, 1 Assistant Procurement Specialist, 1 Procurement Engineer

• Client: 1 Project Manager (for internal and Axis Group coordination), 1 Senior Engineer


• Material standards required by client differed from Chinese standards, Axis Group identified the deviations and proposed suitable equivalent standards

• Quality levels of the pulley and roller were initially not consistent, but through joint effort from Axis Group and supplier, the quality level from the selected suppliers was stabilised at a consistently high level


• China is a leading producer and exporter of pulley and rollers, has a good supply base

• Client achieved cost savings of 20-30% compared with local suppliers


Type Pulley & Roller

Services Shortlist suppliers, technical clarification, contract negotiation, quality management and progress expediting

71

Procurement of Plant Structural Steel

Global Diversified Mining Company

Outcomes

• Order value of over USD XX million: over 7,500 tons of structural steel and platework

• Delivery to site 100% complete

• Very high levels of client satisfaction on quality


• Axis Group: 2 Project Managers (PM, GM), Senior Project Advisor, On-site supervising Engineer, Senior QA Inspector, Procurement Specialists as required

• Client’s PM office (no EPCM involvement), Engineering Consultants, Chinese supplier and sub-suppliers, 3rd party inspection company, 3rd party logistics management company


• Issues and risks during conversion from South African to Chinese standards; required additional involvement of international engineering consultants

• Suppliers lack experience of DDU delivery – Axis Group put together a 3rd party solution


• Good availability of qualified suppliers

• Good production facilities and design capability

• Generally 10-30% savings relative to South African prices can be achieved

• Excellent delivery time and quality is available in China


Type Plant structural steel, platework, and piping

Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, re-design, negotiation and contract assistance, supplier and third-party management, QA/QC and expediting

72

Procurement of Floating Production Storage and Offloading (FPSO) Components

Leading International Construction Company

Outcomes

• Axis Group shortlisted 4 candidates for shop audit

• Led shop audits and recommended the most suitable supplier for this project

• Supplied 1,000MT steel plates in 60 days and saved the project schedule around 2 months

• Managed project phase I and phase II, supplying nine suction piles in 10 months, hence saving the project schedule around 3 months and provided convenience for site installation


• Axis Group: 1 Project Manager in charge of both technical and commercial, 1 full-time Quality Representative at supplier’s workshop

• Sub-contractor: 1 Contract Service Manager, 1 Quality Manager and 1 Contract Manager

• General Contractor: 1 Construction Manager, 1 Project Engineer


• Difficulties in coordination among raw material supplier, suction piles fabricators, certifying organization and client

• During the shop detailing process, technical information (GA drawings) provided by client was not very clear, Axis Group assisted the fabricator to clarify the technical issues

• Axis Group helped supplier understand DNV regulations and standards

• Axis Group helped the fabricator to optimize the processes and expedite the progress


• Good availability of qualified offshore engineering fabricators

• Good production facilities

• Generally 25-35% savings relative to South African prices can be achieved for the final products

• Excellent delivery time and quality of the final products


Type Suction piles fabricated as per DNV.GL standard (offshore oil & gas components)

Services Supplier ranking & shortlisting, technical clarification, contract execution, QA/QC management, expediting, logistics coordination & third-party management

73

Procurement of Power Transformers and Related Equipment

Leading EPC Company in the Infrastructure and Power Sectors

Outcomes

• Shortlisted 3 suppliers, detailed negotiations conducted with 2 suppliers, both chosen for order placement

• First orders placed for 2 sets of equipment: 150 MVA power transformer and 120kV equipment (isolator, current transformer, circuit breaker, etc.)


• Axis Group: Procurement Specialist and Engineer; assistance from GM

• End user - national electric grid; final client – copper mining company

• Technical assistance provided by client (trading company)


• Technical queries during the equipment design phase required heavy coordination and strict communication protocols / document control

• Quality control is required by client and will be performed by Axis Group with assistance from 3rd party inspection companies as required


• Chinese suppliers are very competitive on price and technology

• Modern sophisticated production facilities and R&D centers

• Exports are becoming increasingly important to Chinese suppliers


Type Electrical equipment

Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, order management, QA/QC and expediting

74

Procurement of Steel and Pipes (ERW, SSAW, Seamless)

Leading manufacturer and merchant of steel, tubes and pipes

Outcomes

• Axis Group shortlisted 3 suppliers; client impressed by facilities and product quality and has been placing orders with these suppliers since 2010

• Client achieving sizeable cost savings versus international suppliers (incl. other BCC suppliers) in a very competitive market


• Axis Group : Procurement Specialist and Assistant Procurement Specialist

• Client: Commercial personnel for sourcing trip and order placement; involve 3rd party inspection company as needed


• Longer pipes have to be shipped by break bulk rather than containerised, orders have to be carefully managed to adhere to the shipping schedule


• A few, large suppliers in China have achieved European levels of quality and can provide competitive pricing and delivery times

Outsourced & Managed Procurement Services

Type Commodities

Services Research and analysis, procurement feasibility assessment, supplier shortlisting, tenders and post-tender clarification, negotiation and contract assistance, order management, QA/QC and expediting

75

CSR Audit of Inflight Product Manufacturers

Leading International Airline

Outcomes

• Suppliers found to pass the social compliance and quality assurance audits with minor non-compliance issues

• No child labour, forced labour, association or discrimination identified in the audited factories

• Client to continue engagement with suppliers on minor instances of social non-compliance


• Axis Group: 1 Project Manager and 1 Procurement Specialist

• Client’s Procurement Department: 2 members from the project team

• Third-party CSR auditor: 1 specialist


• To avoid brand damage and unethical procurement, Axis Group managed a quality assurance and social compliance audit

• Axis Group identified areas for the client’s suppliers to improve on health and safety policies

Lessons Learned

• East Asian suppliers are the most competitive in terms of quality and pricing for these products

• Necessary to follow up on suppliers’ quality and social responsibility situation periodically as the factory environment changes frequently


Type Inflight products

Services Service provider identification, CSR audit trip management, Quality Assurance assessments

76

Integrated Global Sourcing Strategy Formulation – Analysis of Current Situation, Best practices & Identification of Key Areas of Intervention

Outcomes

• The Client attained an understanding of the sourcing opportunity in Asia

• The Client was able to identify which Asian countries provided the most competitive products due to local FOB costs and duties

• The Client learned more about the various pitfalls that can occur during procurement in Asia and can now plan ahead to avoid them


• Axis Group: 1 Project Director, 1 Project Manager, 1 Lead Consultant, 2 Project Consultants, 2 Analysts, 1 Procurement Specialist, as required

• Client: 1 Commercial Project Manager (buyer) and 1 Technical Manager (quality control); final findings presented to the executive committee


• The lack of a centralised and standardised purchasing and tracking system for different enterprises within the group presented data analysis challenges

• Work flow disruption occurred due to the holiday season

• Challenge in obtaining quality information during interaction with buyers across the group occurred due to data sensitivity concerns

Lessons Learned

• China still has a substantial edge over other shortlisted countries in terms of quality suppliers and product categories available

• China is losing its apparel competitiveness to other BCC countries in Asia mainly due to increase in labour costs

• Continue to source from China, but gradually diversify your sourcing portfolio to include other BCC countries in Asia to maximise cost benefits


Leading International Retailer

Type Garments and apparel

Services Research and analysis, procurement feasibility assessment, supplier comparison

77

Strategic Sourcing of LNG Facilities

Leading Australian Oil & Gas EPC

Outcomes

• Axis Group shortlisted 4 Chinese and international companies for further engagement after a comprehensive RFI and analysis process. This process vetted Chinese companies’ capabilities: engineering, product range, fabrication and assembly, pre-commissioning, after sales services, reference, etc.


• Axis Group: 1 Project Manager, 1 Procurement Specialist and 1 Procurement Engineer

• Client’s Group Procurement Dept.: 1 Lead Process Engineer, 1 Strategic Business Planner, 1 Strategic Business and Research Analyst


• Difficulties in setting up ranking criteria and obtaining information from targeted companies. Axis Group finalized the supplier ranking and shortlisting methodology for the client based on the agreed key assessment areas

• Chinese companies’ weak handling of English documents was mitigated by document support from Axis Group

Supplier Competitiveness

• Chinese companies are more mature and competitive at fabricating and assembly while US suppliers are stronger in providing engineering technology

Strategic Sourcing

Type Modularized LNG process plant, mobile refueling trucks, road tankers trailers, vacuum storage bullets and load/unload facility

Services Validation of Chinese supplier list, new supplier identification, strategic market analysis of suppliers, supplier ranking & shortlisting

78

General Merchandise Procurement

Leading African General Merchandise Distributor

Categories

• Small domestic appliances (microwave oven, toaster, iron, blender and kettle, etc.)

• Cookware (aluminium and stainless steel pans, pots and pot sets, etc.)


• Axis Group: 1 Project Manager and 2 Procurement Analysts (1 in Beijing, China and 1 in Johannesburg, South Africa)

• Client: 1 Group Executive, Business Development and 1 Commercial Project Manager, Africa Division

Key Challenges

• Very limited information on specifications was available. Axis Group provided various choices to the client after conducting market research

• Suppliers’ lack of African experience. Axis Group assisted Chinese suppliers to understand the specific conditions of the African market. This resulted in receiving more accurate quotations as well as establishing clearer lines of communication with the client


• Cost savings can vary widely according to different business models. Higher cost savings can be achieved from low-end ODM products

• A large ODM supply base with improving quality levels and good design capabilities is available

• Shorter lead-times

Strategic Sourcing

Type General merchandise

Services Procurement feasibility assessment, industry/product research and analysis, supplier identification and evaluation, supplier shortlisting, RFQ, DDP price calculation, plant audit and negotiation (on-going project)

79

FMCG Procurement (non-food)

Leading African FMCG distributor

Categories

• Batteries (alkaline/carbon-zinc AA, AAA, C, D, etc.)

• Candles (white candles, tea light candles, etc.)


• Axis Group: 1 Project Manager, 2 Procurement Analysts (1 in Beijing, China and 1 in Johannesburg, South Africa)

• Client: 1 Group Executive, Business Development and 1 Commercial Project Manager, Africa Division

Key Challenges

• Limited initial order quantities made supplier relationship management more difficult. Axis Group assisted with on-going engagement and relationship management, ultimately increasing interests from suppliers

• Relatively small supplier base for low-end products, given that most of the suppliers focus on the high-end market


• High-cost savings can be achieved with Chinese suppliers; however, quality and delivery time need to be closely monitored

• Good ODM supply base with increasing Africa experience.

• Short lead-times with reasonable MOQ

Strategic Sourcing

Type FMCG – Non-food

Services Procurement feasibility assessment, industry/product research and analysis, supplier identification and evaluation, supplier shortlisting, RFQ, DDP price calculation, plant audit and negotiation (on-going project)

Global Aluminium Player

Developed global procurement strategy and roadmap – and currently implementing comprehensive global procurement program. Current solutions include supplier database, tender support, project management and all strategic sourcing & transactional procurement activities including quality management and logistics




4. Key People


Agenda

82

Key People (1/2)

Kobus van der WathFounder & CEO

Previous Experience

• Current: Founder, Axis Group International; Adjunct Professor: UCT GSB, SA

• Senior Consultant: BCG, Asia• Head of Investment Strategy, Asia Pacific (Singapore) & Emerging Market Strategist (UK): Standard Chartered Bank

• Strategist: Standard Merchant Bank, SA

• Economist: SA Reserve Bank

Education• MBA (INSEAD, France)• MSc (Curtin, Australia)• BCom (Hons) Finance & Investments (Unisa, SA)

• BCom (Hons) Econ & Ind Psy (UJ, SA)

• Fluent in English, Afrikaans and Dutch. Basic Mandarin

Rachel WuManaging Director: AsiaHead: Global Procurement & Supply

Previous Experience

• Sr. Project Manager, Consultant, Procurement Specialist: The Beijing Axis, China

• Consultant, CRM: Foreign Airlines Service Corporation (FASCO), China

• Analyst: Marbridge Consulting, China

Education• MBA (University of Western

Australia, Australia)• BCom (Hons), Economics

(University of Economics and Business, China)

• BA (UEB, China)

• Fluent in Mandarin and English

Gerrie de JongeManaging Director: South Africa & Africa

Previous Experience

• Group Managing Director, Southern and East Africa: Imperial Logistics

• Executive Director Africa (SADC): Imperial Logistics

• National Logistics Manager: Xstrata

Education• BCom (Hons) Logistics Management (University of Pretoria, SA)

• Fluent in English and Afrikaans

83

Key People (2/2)

Bruce MilneChief Financial Officer

Previous Experience

• General Manager of Finance: Imperial Health Sciences

• Financial Director: ProCard• Financial Director: Coin Security• Financial Director: BBR Security

Education• BCompt (Hons) Accounting Science (UNISA, SA)

• BCom (University of Witwatersrand, SA)

• Fluent in English and Afrikaans

Haiwei HuangDirector

Previous Experience

• Associate Director, Senior Manager, Consultant: The Beijing Axis, China

• Team Leader, Project Manager: CHINT, China

• Sales and Marketing Consultant: HuaQi Telecom, China

Education• BA (Hons) Business

Administration (London South Bank University, United Kingdom)

• Fluent in Mandarin, English and Shanghainese

Barbie CoDirector

Previous Experience

• Sr. Manager, Consultant, Analyst: The Beijing Axis, China

• Project Assistant: TravelPeopleMagsaysay Group, Philippines

• Events and Marketing Consultant, Philippines

Education• BA (Hons) International Relations (Ateneo de Manila University, Philippines)

• Chinese Language (Beijing Normal University, China)

• International Business (ESSCA, France)

• Fluent in English, Mandarin and Filipino. Basic French and Minnan

Leading Integrated Global Mining & Processing Company

Comprehensive outsource partner for all global procurement across America’s, Europe, Middle East, Africa & Australasia

Agenda




4. Key People


86

Thought Leadership – Selected Engagements (I)

Date City Event Name Axis Group Participation

21 Jan 2021 PerthAxis Group Roundtable Discussion: Global Supply Chain Shift

‘International Dynamics, Risk & Supply Chain Shift – Challenges, Strategic Choices & Practical Considerations for Resource Sector Supply Chains’ - Kobus van der Wath and Rachel Wu, Managing Director: Asia hosted this event and shared their perspectives on the same

17 Dec 2020 Webinar SourcingShift Summit‘Global Sourcing in 2021 – Supply Chain Shift, Strategic Choices and Practical Considerations’ - Kobus van der Wath delivered a presentation on this topic

26 Nov 2020 Webinar CIPS ANZ Webinar‘Shifts in Global Supply Chains Post-Covid: Revisiting the Strategic Choices and Practical Issues in Global Sourcing’ - Kobus van der Wath and Rachel Wu, Managing Director: Asia delivered a presentation on this topic

24-25 Nov 2020 Webinar Smart Procurement World Indaba‘What has the Coronavirus taught us about Supplier Management and Global Sourcing?’ - Kobus van der Wathdelivered a presentation on this topic

17 Nov 2020 WebinarProcurement & Supply Chain Summit MENA

‘Shifts in Global Supply Chains Post-Covid: Revisiting the Strategic Choices and Practical Issues in Global Procurement & Supply’ - Kobus van der Wath and Rachel Wu, Managing Director: Asia delivered a presentationon this topic

24 Sep 2020 PerthWAMC September 2020 Luncheon –Explorers on the Move Panel Discussion

Axis Group was one of key sponsors of the Sep 2020 Western Australia Mining Club (WAMC) event

16 Sep 2020 Nairobi SAPICS Webinar‘Modern Slavery in Global Supply Chains and how do we tackle this scourge?’ - Rachel Wu, Managing Director: Asia delivered a presentation on this topic

19-20 Aug 2020 Webinar Africa Supply Chain in Action‘New World of Risk: Getting Global Procurement & Supply Right’ - Kobus van der Wath delivered a presentation on this topic, and participated in a panel discussion on ‘Management – Leading Through Black Swan Events’

7 Apr 2020 WebinarIs it Mexico’s Turn? Alternative Supply to China

Kobus van der Wath participated in a webinar discussion hosted by Procurious on the effects of COVID-19 on global supply chains and how it can affect China’s position as a world manufacturing hub

11 Mar 2020 Nairobi CIPS Dinner Session‘Risks in Global Supply Chains’ - Kobus van der Wath and Rachel Wu, Managing Director: China & Asia, delivered a presentation on this topic. Axis Group was the headline sponsor of this event

87

Thought Leadership – Selected Engagements (II)

Date City Event Name Axis Group Participation

26 Feb 2020 Johannesburg CIPS Africa Executive Summit‘Managing Risks in Global Supply Chains’ - Kobus van der Wath delivered a presentation on this topic. Axis Group is the headline sponsor of this event

13 Feb 2020 Johannesburg African Mining Network Axis Group was the sponsor of the Feb 2020 African Mining Network event

5 Feb 2020 Cape TownMining Indaba 2020 Reception with Mergence and Axis Group

Axis Group and Mergence Corporate Solutions hosted their annual cocktail hour event during the week of Mining Indaba

4 Feb 2020 Cape Town Investing in African Mining Indaba 2020‘Examining China’s Electrification Strategy & its Subsidies in African Mining’ - Kobus van der Wath participated in a panel discussion on battery metals specifically focused on this topic

30 Jan 2020 Johannesburg First Thursday Club Axis Group was the sponsor of the Jan 2020 First Thursday Club event

5-10 Nov 2019 Shanghai China International Import Expo Axis Group participated at the China International Import Expo

2 Nov 2019 Shanghai South Africa – China Business ForumKobus van der Wath participated in a roundtable discussion, speaking on behalf of the South Africa China Business Association, outlining areas essential to the success of South Africa-China business relations

17 Oct 2019 Johannesburg GIBS Open Programme Masterclass‘Africa-China Masterclass – Strategic Imperatives and Opportunities for South African and African Businesses’ -Kobus van der Wath conducted a masterclass on this topic

19 Sep 2019 JohannesburgSmart Procurement World Indaba | Senior Procurement Executive Programme

‘Getting Global Procurement Right – a Strategy and Implementation Workshop’ - Kobus van der Wath conducted a workshop on this topic

17 Sep 2019 Johannesburg Smart Procurement World Indaba‘Global Sourcing in a Complex World – Strategic Imperatives for Unlocking Value via International Supply Chain’ - Kobus van der Wath delivered a presentation on this topic

capability statement q3 2021 - axisgroupinternational.com

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