Shell Cements Global Supply Deal With Holcim

Shell Cements Global Supply Deal With Holcim
Published: 29 July 2004

Shell International Petroleum has signed a global contract with Holcim, one of the world’s leading cement suppliers, for the supply of lubricants to its operations in 16 countries.  A period of sustained growth through acquisition prompted Holcim to rationalise its lubricant supplier base and achieve economies of scale by appointing one global supplier for these countries.  Already one of Holcim’s suppliers, with contracts at sites in the Philippines, Chile and Argentina, it was Shell’s global reach and consistent product portfolio, which prompted Holcim to make an approach.

 
Comments Carlos Moreno, Regional Procurement Manager and Project Lead from Holcim: "We were looking for a cohesive and consistent relationship with one global supplier and our past experiences of working with Shell made them an ideal candidate.  Shell was able to guarantee globally consistent products, excellent pricing and logistics offerings and a strong centralised account management structure, matching each of our business objectives and showing a clear commitment to an ongoing relationship with us." Shell secured the business after initial interest from more than 80 other suppliers.  The contract will see Shell supply 100% of Holcim’s lubricant product demands in the 16 countries over a four-year period. 

Stephen Jones, Shell’s Global Account Manager for Holcim notes: " The Shell team approached the global tender from a total cost of ownership perspective - which means it takes a holistic view of costs, including items such as purchase administration and oil analysis  - rather than just looking at product and price.  This approach has allowed Holcim to enjoy economies of scale from working with one supplier and gives them complete control over their lubricants cost, monitoring the actual cost of lubricants per ton of cement produced.  We also ensured that we could give Holcim a strong blend of customer relationship expertise, technical application knowledge and a strong delivery network, using 14 of Shell’s blending plants, to provide a real value added partnership."