Timing of Urging and Reminding fax

1
Order Status Request

• Timing of Urging and Reminding fax
• Currently Anglo Platinum sends out UR for every
  order on
• 1 day before delivery
• 3 days after due date
• 7 days after due date
• These documents are sent out for each line item
  on the order
• 5 Line items equates to 15 documents per order
• Platinum has 3 versions of SAP/R3 across 10
  installations with 3 operating structures

2
Delays with Shipping Agent

• Some suppliers deliver to a Transport carrier who
  consolidates deliveries
• Lead time for Agent is not included in delivery
  date of order
• Agent is not currently integrated to Platinum ERP
• Example - Goods delivered to agent 1 day before
  due date may not arrive on mine until third day
  after due date
• 2 documents per line item will be sent to
  supplier even though the goods were not late

3
Other Delays

• An order response (reject or accept) with a
  delivery date later than on original order does
  NOT automatically change delivery date in SAP/R3
• A buyer is required to assess change and
  intervene to amend order and generate a change
  order
• Similarly an ASN with later delivery date
  requires buyer intervention to amend delivery
  date.
• Current supplier culture in South Africa is that
  they do NOT reject orders from major mining
  company clients
• Many are now accepting the order on
  SupplyCentre with a comment that delivery may
  be late
• Delivery dates are not amended by buyers in SAP/R3

4
Order Status Response

• Anglo Gold Ashanti has implemented request and
  response
• An OSR on Supply centre REQUIRES a response
• Pre integration the OSR was sent as a fax and did
  not require a response
• One supplier, integrated for orders but not yet
  for OSRs, currently has over 150 outstanding
  OSRs on SupplyCentre
• Each one must be manually responded to
• Generating additional work and resources for the
  suppliers

5
Process re-design

• Anglo Platinum was ready to go live with OSR and
  response in February 2005
• Platinum group decision in February 2005 to
  upgrade SAP/R3 to version 4.7 and to rationalise
  to a single instance
• Consequently Platinum has decided to delay OSR
  and response until AFTER rationalisation (October
  2005).
• As part of rationalisation the timing of OSR
  issues and incorporation of Agents time will be
  built into new process
• Decision on OSR per line item or OSR per order
• Go live planned for early 2006

6
Proposal for ISC

• The issue of a Reminder to suppliers one day
  (or more) before due delivery date is common
  practice in Southern Africa
• Other buyers practice?
• Currently OSR Requires a response from the
  supplier
• Generating increased workload and processing time
  for suppliers
• Quadrem to develop a Reminder that is issued
  before due date but does NOT require a response
  from the supplier