The mining industry is becoming increasingly complex from a supply chain and logistics perspective, because simultaneous operations are required to deliver gold, silver, coal, iron ore and other refined metals. The supply chain and logistics processes are regarded as critical success or failure factors for both the day-to-day operations as well as new field developments.
Whereas some industry players have achieved success in minimizing costs at specific points of the supply chain, the limited investment in people, process and system excellence has resulted in:
- Limited performance visibility
- Lack of understanding of the actual impact on the bottom line
- Increased exposure to high risk operations
- General underestimation of actual CAPEX and OPEX supply chain and logistics spend
What is more, only a few companies have a macroscopic view of their end-to-end supply chain and logistics network and costs. Without this big-picture view, companies might miss out on opportunities to capture maximum savings. Furthermore, the low profile of supply chain and logistics within the organization has resulted in them often being involved late in the development and planning cycle of any new mining development.
Slowly, but steadily, times are changing, and supply chain and logistics has become an increasingly important support function. There is more appreciation of the potential opportunities that can improve supply chain performance and deliver cost savings, service reliability and reduced HSSE exposure. Decisively, there is a growing realization that achieving excellence in supply chain and logistics is the key foundation for a multi-pronged value improvement effort.
If managed properly, the supply chain provides a clear competitive advantage; otherwise, it can cause failures that may adversely impact the business results and hinder the relationship with clients.
Our large pool of subject matter experts (SMEs) with extensive industry experience and support enable our clients to deliver projects and operate assets efficiently, safely and in a reliable manner.
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