Page 96 - Annual Report 2020

1.9.5 Commercial

BHP’s Commercial function maximises commercial and social value and minimises costs across the
end-to-end supply chain.
The function is organised around our core value chain activities – Procurement
Sales and Marketing; Maritime and Supply Chain Excellence; Our global Procurement sub-functions purchase the goods and
Procurement; and Warehousing Inventory and Logistics and Property services used by our projects, assets and functions. Procurement
– supported by short- and long-term market insights, strategy and works with our business to optimise equipment performance, reduce
planning activities, and close partnership with our assets. operating costs and improve working capital. They manage supply
Our Operating Model enables us to provide improved service levels chain risk and develop sustainable relationships with global suppliers
to our assets and customers, by harnessing deep subject matter and local businesses in the communities in which we operate.
expertise, simpler processes and centralisation of standardised Warehousing Inventory and Logistics and Property
activities. By embracing our strategic end-to-end supply chain
mandate and partnership with our suppliers and customers, the Warehousing Inventory and Logistics and Property design and
Commercial function also creates social value through supply chain operate our inbound supply chain networks for the delivery of
integrity, community and sustainability focus. spare parts, operating supplies and consumables. They design
and operate our office workspaces globally.
Sales and Marketing
Sales and Marketing connects BHP’s resources to market through Market Analysis and Economics
commercial expertise, optimised sales and operations planning, Our Market Analysis and Economics team develops BHP’s
deep customer insights and proactive risk management. They independent view on the outlook for commodity demand
present a single face to markets across multiple assets, with and commodity prices. The team works with our Procurement,
a view to realising maximum value for our products. Maritime, and Sales and Marketing sub-functions to help optimise
end-to-end commercial value, and with the Finance and External
Maritime and Supply Chain Excellence Affairs functions to identify and respond to long-run strategic
Maritime and Supply Chain Excellence manages BHP’s enterprise- changes in our operating environment.
wide transportation strategy and chartering ocean freight to meet
BHP’s inbound and outbound transportation needs. They work to
ensure consistent safety standards across BHP’s maritime supply
chain and lead the industry toward a safer and more sustainable
global ecosystem. The team focuses on supply chain excellence
and sourcing marine freight coverage at the lowest available cost.

94 BHP Annual Report 2020