29 Jan SUPPLY CHAIN: THE UNSUNG HERO IN MINING
By Lance Baldwin
Group Procurement and Commercial Manager at Minopex
In traditional mining, supply chains are often viewed as non-value adding activities that unnecessarily add to overhead costs. As a result, recruiting top talent for supply chain positions is not prioritised, leading the departments to underperform. This reinforces the idea that supply chain management is a wasted budget line item – but this notion could not be further from the truth.
The Importance of a Strong Supply Chain
Consider the number of spares and services that are involved in day-to-day mining operations. It’s easy to see why the supply chain is often the second biggest (if not the biggest) expense in the operation. Effective supply chain management depends on the priority and emphasis that the business places on this. While this is a critical element in mining success, it is not the core focus of the mine, which means its importance is often understated or misconstrued by internal teams.
Overcoming Key Supply Chain Pain Points in Mining
Supply chain management is generally not a mining operation’s core business. Outsourcing supply chain services mean that mines benefit from an effectively managed supply chain; ensuring success and addressing the key pain points they face – without placing additional burden on internal teams.
With expert skills, immense buying power, proven processes, and decades of experience, Minopex’s Supply Chain team is adept at unlocking hidden value in the client’s supply chain. By aggregating the capability of the entire Minopex operation and leveraging the buying power of DRA Global, preferential pricing benefits can easily be passed on to clients. This enables clients to focus on their core business requirements such as mining and processing, with the assurance that their supply chain is professionally managed and adding value.
Benefits of Minopex’s Supply Chain Service
Supply chain management goes much deeper than ensuring the right spares reach the right location at the right time. It is a key tool in managing risk in any operation. Effective supply chain management:
- Mitigates reputational risk by focussing on sustainability and building relationships with reputable suppliers
- Lowers legal risk by ensuring all statutory requirements are met and giving suppliers one point of contact
- Minimises operational risk by reducing downtime and developing a constant revenue stream
- Diminishes financial risk with preferential pricing, by eliminating unnecessary expenditure, and by ensuring the lowest possible capital investment on inventory (without compromising operations or delivery)
Essentially, effective supply chain management delivers:
- Reduced costs and increased savings with fewer capital requirements
- Improved performance
- Unlocked value from a sustainable supply chain
- Enhanced legislative compliance
- A positive effect on the triple bottom-line, impacting the social, environmental, and financial elements of the organisation
For more information about Minopex’s Supply Chain Management Services, please contact Lance Baldwin at firstname.lastname@example.org.