MONEY TALK: James Palmer, asset president at BHP, talking at BAE Engineering's Paget workshop.
MONEY TALK: James Palmer, asset president at BHP, talking at BAE Engineering's Paget workshop. Emma Murray

Payment terms explained: BHP to host Mackay forum

BHP Billiton Mitsubishi Alliance will meet with more than 100 businesses in Mackay tomorrow following the announcement of changes to its procurement policies last month.

In late November, the major mining firm extended preferred payment terms of 30 days to all Australian businesses in local areas and will tomorrow host a public Supply Information event to address the changes.

The event, to be held at the Mackay Entertainment and Convention Centre, will cover BHP's supply processes, systems and support programs and feature people from the contracts and procurement, as well as others.

"Following the changes we've made to 30-day payment terms for all Mackay-based businesses, we're meeting with locals to share information about our procurement system, answer any questions they have and to support their involvement with BHP," a spokesperson for BHP said.

"We've heard concerns about the impact our standard global payment terms were having on small businesses in Mackay, and how people sometimes find it hard to work with us.

"That's why we've extended preferential payment terms to all Mackay-based businesses and holding the supplier information session - to make it easier for people to deal with BHP.

"We value the communities we operate in, and want our local suppliers to grow strong businesses as we grow ours."

Along with the recent changes to payment terms, BHP suppliers will also hear from the company on the broader supply process information including purchasing support.

Other topics covered will include:

SAP Ariba: Supplier training information will be provided regarding the use of SAP Ariba, the BHP payment system platform for vendors.

BHP Local Buying Program: C-Res, who deliver BHP's Local Buying Program will present information on the Local Buying Program and the opportunities available for small local suppliers through this platform.

Local and Indigenous Procurement: team available for support, to answer questions and identify opportunities

Community: team available for support, to answer questions and discuss our interaction with the community more broadly.

Supply Chain Financing: Citibank, who provide BHP's Supply Chain Finance Program will present in depth information to suppliers about the program and how to access it.

The event will be separated into two session times. 9am-11.30am and 2pm-4.30pm, to allow flexibility for suppliers to attend. Walk-in attendance on the day is welcomed.