FP360 reduces equipment and explosives costs while strengthening supplier resilience
FP360 was engaged by an established mining house to run a series of RFQs across several critical procurement categories. The company maintained long-standing supplier relationships, but its portfolio had not been competitively reviewed in several years.
FP360 conducted a structured, hands-on assessment of the procurement portfolio and managed the RFQ process directly, evaluating supplier mix, price alignment, and exposure to supply risk. The work identified opportunities to reduce spend, introduce additional supplier competition, and strengthen purchasing discipline without disrupting operations.
To support ongoing decision-making, FP360 also developed a supplier risk dashboard tracking pricing trends, geopolitical exposure, and tariff risk across the supplier base. The engagement delivered meaningful cost savings while giving the organization a more resilient framework for managing procurement over time.
THE CHALLENGE:
The mining house relied on a set of established suppliers across key categories, including heavy equipment, explosive materials, and operational supplies. Over time, those relationships became the default sourcing model.
This dynamic is common in mining operations. When suppliers perform reliably and production remains steady, procurement practices can remain unchanged for long stretches. In this case, several categories had not been competitively tested through RFQs in years.
As a result, supplier concentration had increased in certain areas, and purchasing decisions were guided largely by precedent rather than current market trends. Without a structured portfolio review, the organization lacked clear visibility into whether pricing remained competitive or how exposed certain categories might be to supply and cost disruptions.
OUR APPROACH
FP360 began with a portfolio-level assessment to understand where spend was concentrated, how suppliers were distributed across categories, and how pricing compared to prevailing market conditions. From that aerial view, the team quickly identified several areas where costs appeared significantly above market benchmarks.
Rather than acting on those early observations alone, FP360 followed a “go and see” approach. Consultants visited the site to meet not only with the procurement team, but also with the operators and maintenance staff who rely on the equipment and materials every day.
Those conversations were critical. Procurement specifications often originate at the purchasing level, but operational teams ultimately determine what performs reliably in the field. By speaking directly with those stakeholders, FP360 ensured that any sourcing changes would support operational realities rather than simply chase lower prices.
The team then delivered a portfolio audit outlining category-level findings, supplier landscape analysis, and a recommended RFQ strategy. Aligning stakeholders around that plan ensured that competitive sourcing could move forward without introducing operational friction.
THE SOLUTION
FP360 executed competitive RFQs, expanding supplier participation and establishing updated pricing benchmarks. The results confirmed what the initial portfolio review had suggested: several items were being purchased well above prevailing market rates. Competitive sourcing created immediate opportunities to reduce costs without compromising product performance or supplier reliability.
Rather than replacing incumbent suppliers outright, FP360 helped rebalance the sourcing portfolio. Established relationships were maintained where they delivered operational value, while additional suppliers were introduced to strengthen pricing leverage and reduce concentration risk.
At the same time, FP360 implemented a supplier review dashboard to track price movements, geopolitical exposure, and tariff considerations across the broader supplier base. This ensured that when the next RFQ cycle arrived, the client would have the context to evaluate options beyond price alone.
RESULTS
The RFQ process delivered meaningful cost reductions while maintaining supplier performance standards. Supplier concentration declined across several areas, improving negotiating leverage and reducing exposure to pricing and availability risk.
Following the success of the initial engagement, additional purchasing lines were added to the RFQ program, and FP360 was retained to support recurring sourcing cycles and portfolio reviews. What began as a targeted procurement exercise evolved into an ongoing strategy grounded in disciplined market testing and continuous visibility into supplier risk.
BUSINESS IMPACT:
Reduced procurement spend across critical categories through disciplined RFQs and competitive supplier benchmarking
Diversified supplier exposure, strengthening resilience against pricing volatility, tariff shifts, and geopolitical risk
Established a repeatable sourcing framework, including a supplier risk dashboard, that replaced status-quo purchasing with structured market testing and data-driven decision-making
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