SOME
KIND
OF
TRUCK Perhaps the last thing you think of when
standing beneath a Komatsu 830E haul truck is
corporate procurement. That would be like seeing
the Grand Canyon for the first time and thinking
about the initial stream that must have started it.
But it turns out that as arresting as it is to
experience first hand one of the world’s largest
trucks, the story behind its latest iteration, which
started as mere corporate procurement, has
resulted in a new, and larger reality that is poised
to change the way Rio Tinto does business.
To all of that in a moment. First, to the truck
itself simply because it cannot be ignored. Take
the case of Sarah Lungren, an industrial engineer
by training, who first operated a haul truck at Rio
Tinto’s Antelope coal mine in Wyoming in the
heart of the US. During her time there, someone
offered her the opportunity to operate a Komatsu
830E, a truck with a cab some 18ft above ground.
So, after training, she did. “It was awesome!”
she told me on a recent tour of the Bingham
Canyon copper mine in Utah where she now
works. “I fell in love.” Now she knows every inch
of the thing, extolling its virtue as though she is
telling you about her Toyota 4 x 4 pick-up. “The
seat just floats and it is so comfortable and quiet.
The retard speed control really gives you command
and the thermostatic fan clutch is amazing.”
Then she really lights up. “But when you can
swing one of those 830s into place under the
shovel so that the operator doesn’t have to miss a
beat, then you know you really know what you’re
become infused into a culture of safety, are systematic And so, little by little, procurement activities have
and serious. Safety audits happen regularly and become more centralized, into what is now known as
irregularly (surprise audits). Benchmarks are set and Rio Tinto Procurement (RTP), headed by John
reports are made. More importantly, mine operators McGagh. The same thinking has been manifest in the
know that their bonuses are tied directly to their creation of the Operational and Technical Excellence
safety record. Sheer pride keeps any unit from the (OTX) group, which brings together Health, Safety
ignominy of being in the bottom quartile of safety. and Environmental matters, providing world class
Something else has happened too. Rio Tinto has technology based service to the product groups and
moved from being an international group into their businesses.
becoming a global group. The difference? An Now, each business unit has a service level
international group works in countries all over the agreement with Rio Tinto that formally authorizes
world; a global group works the world. And to work Rio Tinto to commit the funds and manage the
globally, it’s imperative to think globally. contracts in purchasing. Alan Hustwick, vice
For Rio Tinto, that has meant a gradual increase president of Global Supply, oversees these contracts
over the past ten years in control of their subsidiaries with “Tier 1” suppliers globally. Given the diverse
in matters of safety, training and, now, equipment. nature of the business units, this was not an easy
place to get to. But it was a big step in the right . . . original equipment engaging in a lot of back and forth about concepts and
direction. design, certainly not at a time when OEMs can’t make
manufacturers were
However, the idea, let alone the reality, of a haulers fast enough. Working together with a buyer with
standard haul truck was still elusive because of an uncomfortable about installing the end user in mind? What a strange idea.
historical standoff between original equipment safety equipment as part of the But Rio Tinto was getting to the point of having to
manufacturers (OEMs) and the companies they end its piecemeal approach to ordering and delivery
supply. OEMs and Rio Tinto played their traditional package lest they get drawn and to have in place a more efficient system. The
roles in this expensive little drama, regarding each into a liability situation should safety imperative was ever more pressing and the
other with a suspicion usually reserved for squeeze on vehicle availability was suggesting that
competing suitors after the same sweetheart.
something go wrong. Rio Tinto needed a preferred supplier that would get
Part of the uneasiness was legal: OEMs, especially a lot of business if it played ball.
when it comes to vehicles, were uncomfortable about But in this case, playing ball meant coming to
installing safety equipment as part of the package lest understand the significant changes that had taken
they get drawn into a liability situation should place at Rio Tinto. In short, Rio Tinto was looking for
something go wrong. But more than that, OEMs are a new partner, based on a willingness to make a
used to fulfilling the contract to the buyer, not in simultaneous change of culture.