Newmont’s suppliers are an integral part of our team and play an important role in helping deliver our strategy to lead the gold sector in profitability and responsibility. This includes the safe, efficient and timely delivery of projects, day-to-day site operations and effectively managing evolving and emerging risks.
The types of risks impacting our supply chain continue to evolve and we have identified the need for more proactive and predictive risk management strategies to protect our people, our business, nearby communities and the environment. As part of this effort, Newmont is implementing a new approach for managing supplier relationships, from contract set up and execution to contract close out.
To support your understanding of these changes, please see our Frequently Asked Questions below.
What are the benefits of Newmont’s new approach to managing supplier relationships?
Our new approach will support both you and Newmont to deliver on our shared commitments for effective and responsible risk management through clear communication and a mutual understanding of expectations.
What are the key changes for Newmont suppliers?
There are two key changes that will enhance the way we work together to manage risk:
- Prequalification (online supplier registration) – we are introducing a new online tool, Aravo, to streamline Newmont’s existing registration process and allow Prequalification activities to occur outside of a specific sourcing event.
- Supplier Management Plans we are introducing Supplier Management Plans to formalize the agreed management activities for all high risk Scopes of Work covered in existing and future Contracts.
When will these changes take place?
From July 2018, existing Newmont suppliers will be invited to complete a questionnaire, and submit the necessary risk and performance information into Newmont’s online risk and performance tool, Aravo. Suppliers that require a Supplier Management Plan will be notified between July and September 2018.
Are these changes a requirement for all Newmont suppliers?
Going forward, all suppliers who enter into a contract with Newmont will be required to prequalify in Aravo. Newmont will determine which Scopes of Works (SOWs) will require a Supplier Management Plan. For new contracts, the Supplier Management Plan will be developed by Newmont and agreed with the supplier prior to signing the contract. For existing contracts, the requirements within the Supplier Management Plan will be aligned with current contractual terms.
My organization has never had an incident with Newmont, do we need to comply with these changes?
The new risk management requirements will drive stronger proactive management of risk through a globally consistent approach to managing our supplier contracts. As such, it is in our shared interests to manage these risks and will be a requirement going forwards.
Will we need to update our organization’s existing contract with Newmont?
The terms of your current contract with Newmont will remain the same. The Supplier Management Plan will reflect the existing Scope of Work and contractual terms.
How will our organization engage with Newmont in the future?
For your contract with Newmont, you will be assigned a Newmont Contract Owner who will be your main point of contact, along with your Supply Chain representative.
How much time will the new risk management activities take?
The Prequalification questionnaire is estimated to take between one and two hours. The time effort associated with activities in the Supplier Management Plan is dependent on the risk profile associated with the goods and services being provided to Newmont.
Prequalification (online supplier registration)
What is Prequalification?
Prequalification involves suppliers completing an online questionnaire and uploading various types of supporting documentation. This information is used to assist in the early identification of risk and expectations of Newmont standards. Other information (e.g. Insurance Certification) is used to ensure that suppliers are meeting the minimum requirements (contractual or otherwise) to do business with Newmont.
What information will our organization need to provide as part of Prequalification?
In addition to answering the Prequalification questionnaire, you will also be required to submit additional information which may include:
- Relevant Certificates of Insurance (e.g. Professional Indemnity, Workers Compensation, Public and Products Liability)
- Conflict of Interest declaration
- Human Rights policies
- Cyber Security policies
- Corruption/bribery allegations or convictions
- Legal/regulatory and government affiliations
- Health and safety performance.
Does Prequalification guarantee our organization a contract with Newmont?
All current and future Newmont suppliers will be required to complete Prequalification on an annual basis to be eligible to bid for Newmont contracts. However, Prequalification does not guarantee future work, nor does it represent a contract to transact with Newmont.
Will the information our organization provides in Prequalification exclude us from being awarded a contract with Newmont?
The intent of Prequalification is not to be exclusionary. The purpose of Prequalification is to support the early identification of risks, and ensure that when a formal contract is awarded, appropriate risk management requirements are included within the contract.
How do we access the Prequalification tool?
Prequalification is invitation-only at this time. In July 2018, you will receive a Prequalification invitation email that is unique to your organization. The link contained in this email is your only way to gain access to Aravo.
When does Prequalification need to be completed?
Prequalification for existing Newmont suppliers will commence from July 2018. It is expected that Prequalification is completed within one month of receiving the email invitation.
Where is the Prequalification information that our organization submits into Aravo stored?
All information is stored in a secured cloud hosting facility physically located in the United States.
If we have issues completing Prequalification, who do we contact?
For issues with Aravo, or clarifications on the questions being asked, please contact your local Newmont Supply Chain Representative or fill in the query submission form below.
What are the system/hardware requirements for the Prequalification tool?
The Prequalification interface is browser-based, and supports the latest versions of Chrome, Firefox, Safari, and Internet Explorer. There is no requirement to download any additional software to be able to access the Prequalification questionnaire
Supplier Management Plans
What is a Supplier Management Plan?
We are introducing Supplier Management Plans to formalize Newmont’s risk management activities based on the level of risk associated with the goods or services being provided. These plans will provide you with a structured approach and clear expectations of how Newmont will engage with you over the life of a contract, including activities, meetings and stakeholders involved in proactively managing risks related to a contract.
Will our organization have to comply with new KPIs?
In the process of Newmont developing Supplier Management Plans, additional risks or KPI’s may be identified. This may result in some suppliers requiring updated or additional KPIs. However, any changes will be discussed and agreed with your Newmont Contract Owner and Supply Chain representative.
What happens if the KPI’s are not achieved?
Newmont will maintain its existing measures to manage a failure to meet KPI’s.
Our organization services multiple Newmont sites. What does this mean for us? How many Supplier Management Plans will we have?
If your organization undertakes high risk work or provides critical goods to multiple Newmont locations, your Supplier Management Plan will take into consideration the locations that you provide these services. A Supplier Management Plan is required for all high risk work or critical goods contracts. Where possible Newmont will consolidate the activities in these Plans to minimise duplication of meetings and effort by both Newmont and suppliers.
Our organization services multiple Newmont sites. Will we have different KPI’s for each site?
You will continue to be managed to KPIs relevant to the contract or SOW that is being delivered. This means multi-site suppliers may have more than one set of KPIs to monitor.
Can our organization update our pricing as a result of this?
There is no change to existing conditions of Newmont’s contracts with suppliers and therefore there is no requirement for suppliers to renegotiate the commercial terms of their contracts with Newmont.
For more information
How will Newmont support suppliers through the change?
We will continue to engage and communicate with you throughout the transition through Supplier Forums and one on one discussions to support your organization. If you have any further questions, please contact your local Newmont Supply Chain Representative or fill in the query submission form below.