The organizational structure of procurement within Barrick is reflective of the entrepreneurial culture that Barrick has always fostered.
In late 2003, we created Regional Business Units, which are considered to be profit/loss centers for the corporation. As such, they are responsible for meeting our objectives as well as continuing to develop their regions from an exploration and business development standpoint.
The majority of procurement resources are located at the mine site level. These site procurement groups report through the mine’s management structure up to the Regional Business Unit.
A regional procurement leader is responsible for coordinating efforts within a particular region and is matrixed back to Toronto’s corporate headquarters to ensure that best practices are implemented as well as the optimization of our centralized spend.
Finally, the corporate team exists to provide strategic focus and global supply chain expertise. Through its efforts in sustaining consistent cross-functional and international SCM communication within the company, the corporate SCM team supports Barrick's site-specific and global purchasing efforts.
In summary, we have centralized sourcing with decentralized execution at the mine site level.