Suppliers have a significant impact on Freeport-McMoRan’s operations and costs. Supplier and contractor relationships are key to Freeport-McMoRan’s success.

Freeport-McMoRan’s Global Supply Chain manages strategic and high profile commodities and services on a global, regional, and / or local basis.

In addition to the commercial process, Global Supply Chain manages systems, processes and procedures throughout the supply chain company wide. At Freeport-McMoRan, the supply chain begins with our suppliers’ suppliers and ends with our consumption. Total supply chain costs are managed using the Freeport-McMoRan Hourglass Approach.

Commitment to Suppliers

Freeport-McMoRan commits to conduct all business:

• in a fair and reasonable manner
• with high integrity
• utilizing best available data for decision making
• enabling accountability
• driving innovation and creativity
• fostering open and honest communications

GSC Management

GSC Commodity Managers

NA - GSC Site Leaders

SA - GSC Site Leaders

PTFI - GSC Site Leaders

Oil & Gas - GSC Site Leaders

Freeport-McMoRan Global Supply Chain has developed a unique initiative called the “Hourglass”.

Examining The Supply Chain Process

The Hourglass approach requires Freeport-McMoRan and its suppliers to jointly examine the supply chain process from

• operational need identification to
• supplier material purchase and production to
• material and service delivery to
• payment settlement. 

Working Together to Reduce Waste and Increase Profit

The objectives are to understand each business and all related activities that impact both companies. The intent is not to shift costs but rather to seek out opportunities that jointly eliminate waste and inefficiencies, creating shared savings and greater profitability for both companies. This strategic relationship focuses heavily on using data to make better business decisions.

The Hourglass Model illustrates Freeport-McMoRan’s total supply chain cost to Freeport-McMoRan, including the negotiated contractual pricing (the narrowest point) to supplier and Freeport-McMoRan costs that occur before, during, and after need identification. Some of the business processes and costs analyzed in the Hourglass project are represented in the boxes in the upper and lower triangles of the Hourglass. These processes and costs include:

• planning
• sourcing
• emergency ordering
• order fulfillment
• freight & shipping
• stock-out process
• component failure tracking
• receiving & inventory management
• invoicing & billing
• warranty management
• payment processing 

A typical Hourglass project will analyze two to three of these supplier and Freeport-McMoRan processes/costs areas.

Upcoming Bidding Events / Forward Auctions

To view potential upcoming bidding events, get registered in Ariba:
Registering in Ariba Discovery Portal allows your company profile to be visible to us and several other buying organizations present on the portal. You will be added to Ariba’s communications list so that you can be notified of upcoming bidding opportunities pertaining to your commodity. The Ariba Discovery portal is also the location where we will be searching for suppliers while conducting sourcing events in addition to our SAP system and other business directories.

Note: Supplier registration does not guarantee an invitation to a sourcing event or contract award. Also, not all Freeport bidding events are posted on the Ariba Discovery platform – only the ones where we are looking for additional participants.

There is no cost to register. Please follow the link below to complete your Ariba registration, if you haven’t done so already.

Please visit the Ariba Discovery page for details about upcoming bidding events and self-nomination.

Commodity Listing

For information on Freeport-McMoRan’s top commodities, please review the Commodity Management area.

Freeport-McMoRan’s Asset Recycling and Disposition Team

Freeport-McMoRan’s Asset Recycling and Disposition Team offers sales of used, open pit and underground mining equipment and primary and secondary crushing, milling, flotation and processing equipment.

For more information on items that are available for sale or for information on upcoming auction events please contact one of the following representatives.

Asset Recycling and Disposition Contacts

North America

South America