Goldcorp — Brochure 2018

Mining Supply Chain excellence

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Driving a Supply Chain revolution at Goldcorp

WRIT TEN BY

JA MES HENDERSON PRODUCED BY

GLEN WHITE

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Rishi Ghuldu has spearheaded a Supply Chain transformation over the last 18 months at Goldcorp, backed by the company’s senior management

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oldcorp set an ambitious target as part of its 20-20-20 strategy; which meant to increase production by 20%, reduce

cost by 20% and increase its reserve base by 20%. To support this important goal for the Company, Rishi Ghuldu, Goldcorp’s Vice President of Supply Chain & Asset Management, sat down with the company’s Chief Operating Officer, Todd White, to discuss how the company’s Supply Chain was performing and at what pace it was maturing. There was a realisation that while progress was being made, the trajectory of change was not where it needed to be. Ghuldu and White decided that Goldcorp needed to demonstrate real change in a matter of months, rather than years or even decades.

The decision was made to push the accelerator and challenge the Supply Chain and Procurement function to quickly prove its value to the business, allowing it to emerge from a back-office

The Goldcorp team

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function to a team with a voice at the company’s top table. In Ghuldu’s own words: “We really wanted to catapult ourselves forward.” A deep dive into the company’s Supply Chain function was undertaken, as well as a close study of successful Supply Chain transformations both within mining and other sectors.

“We mapped out where mining is

From left, Goldcorp’s Ivan Mullany (SVP Technical Services) Rishi Ghuldu and Todd White, (EVP & COO)

relative to other industries in terms of Supply Chain maturity, and we felt it was lagging. Each of our mine sites were doing their own thing, which was often w w w.go l dc o r p . com

CLICK TO WATCH : ‘GOLDCORP TEAM TESTIMONIALS — SUPPLY CHAIN DIGITAL TRANSFORMATION 06 correct, but we were certainly miss-

every day. Getting the change approved

ing out on a number of opportunities.

involved conversations with Goldcorp’s

We took the decision to centralise our

investment committee, Mine Manag-

Supply Chain enabling us to leverage

ers and the Executive team. It was so

our portfolio strength – this was really

important to get our team to under-

vital to our transformation.”

stand the thinking behind the move. We

Goldcorp is a company that is pre-

pinpointed to some early wins and were

dominantly decentralised so a great

able to build momentum and support

deal of work went into building the

for the transformation.” Ghuldu and his

business case to centralise the Supply

team studied how other companies had

Chain function.

turned their Supply Chain and Procure-

“Technically, the decision to migrate

ment functions from a largely lethargic

the function is not too difficult,” he says.

function to one that added tangible

“But the company’s Supply Chain

value. The key was found to be a fun-

touches thousands of our employees

damental change in attitude.

“To be successful, we had to be candid about our capability of doing

to be an industry leader – we’re not gunning for second place.”

this ourselves, so we took our ego out

“We took the decision to go ‘all-in’,

of the equation. We realised that there

so each of our sites is in the process

were companies around the world we

of being converted to the new model.

could build partnerships with that are

It’s a lot of change in a short amount

very skilled at what they do – we under-

of time but it’s been communicated in

stand that we can’t do it all ourselves.

a clear and consistent fashion and we

We believe that by forming this part-

completely believe there is value in do-

nership, we have been able to achieve

ing it this way rather than over a longer,

in 18 months what companies going at it

phased period of time.”

alone might take seven or eight years

Ghuldu is keen to stress that under

to achieve. That’s enabled us to over-

the new model, it is the planning of the

take some of our competition. We want

Supply Chain that is centralised, with

E X E C U T I V E P R OF IL E

Rishi Ghuldu Rishi Ghuldu is currently Vice President, Supply Chain & Asset Management at Goldcorp Inc. Rishi’s expertise includes formulation and implementation of enterprise Business Improvement strategy, global supply chain management, asset management, change management, and merger integrations. Prior to joining Goldcorp, Rishi led Barrick’s Business Improvement function and worked with the Supply Chain group to launch Barrick’s Supplier Development Program.

Rishi started his career in the automotive industry and holds a Manufacturing Engineering degree from McMaster University and an Executive MBA jointly offered by Kellogg-Schulich (Northwestern/York University) School of Business. w w w.go l dc o r p . com

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“ We have been team meets regularly with senior manable to achieve agement, corporate and finance to in 18 months talk about the potential spend over the next 12-24-month period, and define what companies sourcing opportunities. From there, a going at it alone decision is made about whether an opportunity exists for a single site, a might take seven regional opportunity – taking in three or eight years to four mines or a global opportunity.

“We then report back to the operato achieve” the individual sites overseeing the ex-

ecution. Specifically, the Supply Chain

tions, because that’s where most of

our purchasing takes place. To a large extent, we’re able to provide what each site is going to target in terms of spend,

— Rishi Ghuldu, Vice President of Supply Chain & Asset Management

and what their respective savings

picture and of the supplier base, which

targets are going to be for the follow-

greatly impacts how the negotiation

ing year and the year after. Sites know

takes place and how we are able to

their goals and what opportunities they

drive results.”

can leverage,” Ghuldu comments.

The transformation has also been

“As we were designing our future state, we wanted to avoid creating the

built on access to market intelligence,

best Supply Chain in the world but rather

with professionals communicating

the best Supply Chain for Golddcorp;

regularly with Goldcorp about global

thus not aiming for functional excel-

trends, commodity performance and

lence but for business excellence.”

how foreign exchange rates might impact a project or an initiative.

The transformation has truly increased the spotlight on the company’s Supply

“When we are sitting across from

Chain planning and execution, in turn

our suppliers, we are now equipped

making the function an integral part of

with more knowledge of the broader

Goldcorp’s wider goals. w w w.go l dc o r p . com

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“ We want to be an industry leader — we’re not gunning for second place” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management

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board, the auditors and the market, we have to deliver on our plans. The transformation is really helping our business become more competitive and sustainable, while lowering costs.”

A case in point is a 40% improvement in the time it takes for a purchase requisition to be converted into an issued purchase order. According to Ghuldu, that has been achieved by standardising processes and rolling out success-

“Prior to this transformation, we had

ful initiatives from one site across all of

some targets within the Supply Chain

its mines. It is a more consistent, higher

function that were generally fairly

level of service, leading to improved

low; without a lot of questioning around the targets or ac-

confidence from clients, he says.

Working through cross func-

countability for realisation of

tional teams on the sourcing

those targets. Supply Chain

front, Goldcorp has been able

was not an integral part of the

to achieve significant savings through competitive bids

overall planning process.

that have resulted in

Because of this transformation, our per-

locked-in savings that

formance numbers

are in the tens of

are now significant

millions of dollars.

enough that Supply

The company

Chain is an impor-

has also been able

tant part of the

to provide growth

operations budget.”

Because of this critical focus from the

— Fernando Carrascal, Director, Global Procurement

opportunities for its professionals, says Ghuldu: “We are

CLICK TO WATCH : ‘RISHI GHULDU VICE PRESIDENT — SUPPLY CHAIN & ASSET MANAGEMENT AT GOLDCORP 11 starting to operate as a more cohesive

successful collaboration between;

global team, and provided expanded

Operations, Asset Management, IT, Fi-

roles for our Supply Chain staff, wheth-

nance and HR teams within Goldcorp.”

er that’s the site leaders who are now

Despite such a successful transition,

managing offshore teams or global

Ghuldu is still looking to the future, still

category managers taking on addition-

looking for opportunities to improve.

al categories. We have more resources

Part of that effort is integrating cut-

at our discretion than we have had be-

ting-edge technology into the Supply

fore, which means more opportunities

Chain function.

that we can realize.”

Ghuldu recognises that Supply Chain

“We’ve been able to put foundational processes in place and started to gener-

is but one spoke of a larger wheel at

ate results, so we can look forward. The

Goldcorp and is keen to highlight the

thing I believe is going to be the next,

whole value chain of its Supply Chain

call it, Supply Chain disruption in our

maturity. “It is a reflection of the hugely

business is how we do demand planning. w w w.go l dc o r p . com

12

£3.42bn Approximate revenue

1994

Year founded

14,094

Number of employees (2017)

“The transformation is really helping the business become more competitive and sustainable, while lowering costs” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management

w w w.go l dc o r p . com

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“ We could not have done this without the overarching support from our senior leaders” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management

14 So, it’s about integrating the planning of Operations, Asset Management and Supply Chain, and doing so in a real-time manner,” Ghuldu comments.

“We can utilize technologies such as condition monitoring and end-to-end

becomes more of a check, rather than to generate a demand plan.”

visibility of our Supply Chain, which

“There have been critical lessons

helps us understand what parts you

along the way,” he says. “Acknowledg-

need, what parts are sourced, lead

ing our gaps and taking accountability

times for delivery of parts . Before

for areas where things should have

even realising that a part is needed,

been done better is the only way we

the system has identified the pattern

can improve going forward. Humility

because we have an algorithm in place

goes a long way.”

to be able to detect certain conditions that are lining up. Human intervention

Ghuldu couldn’t have achieved what he has without one core component,

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From left, Fernando Carrascal, Amy Hu and Rishi Ghuldu his team. “To undertake such a chal-

The exciting question for the business

lenging task, we could not have done

– if not its competition – is if so much

this without the overarching support

can be accomplished in 18 months,

from our senior leaders and as well

what could be achieved over the coming

as standout performances from the

five years?

Supply Chain team members. This transformation has provided a great platform for our Supply Chain team to rise to the occasion and demonstrate not only functional expertise but also leadership.” w w w.go l dc o r p . com

3400 Park Place 666 Burrard Street Vancouver, B.C. Canada V6C 2X8Â T (604) 696-3000 www.goldcorp.com