3 Procurement Trends That Can Change the Dynamics of the Mining Industry in 2019
Today commodities are moving back broadly into the global market balance but the challenges for the mining industry are far from over. In a world of more complex ore bodies, deeper mines, social and geopolitical risks, growing energy costs, resource nationalism and lack of infrastructure, global mining industry remains under exceptional pressure to control costs, boost efficiency and improve safety performance.
Rising cost is a cause of concern for the mining industry as the strategies of mining companies depend heavily on the current state of the market. Also, the rise in cost is resulting in the declining quality of ore and limited accessibility of new deposits. This will squeeze the supply in the years to come, potentially driving a commodity-price rebound as the global demand continues to rise. So, the companies need to analyze the new procurement trends in the mining industry that can offer exceptional opportunities for efficiency gains and can help in controlling costs as well.
At SpendEdge, we understand the impact that rapidly changing procurement trends can have on your mining business. And to help companies in the global mining industry to reposition their portfolios and excel in the competitive landscape, our team of experts has highlighted three procurement trends that have the potential to change the complete dynamics of the mining industry in 2019.
Procurement Trends Changing the Dynamics of the Mining Industry in 2019
Trend #1: Automating mining processes
In the constant push for higher productivity and cost efficiencies companies in the mining industry are re-evaluating processes and their method of operation. They are also concentrating on mining procurement trends, which include endeavoring for better visibility to their workflow processes, in particular with contractors. The automation of procurement processes is considered to be a significant cost saver due to its ability to overhaul the traditional way of managing supplier operations and contracts. Moreover, it is a more efficient way to improve visibility, governance, and control over contracts in real time.
Trend #2: Growing cost-cutting measures
In the mining industry, maximizing savings through procurement has always been of great importance. This is the reason why this is one of the procurement trends still prevailing in the mining sector. Companies in the mining industry are searching for new and more effective ways to shed costs further to improve operational efficiency in an unstable market.
Trend #3: Supplier relationship management
The ongoing uncertainty around the globe regarding the future of resource prices has caused many companies in the mining industry to re-examine their existing contracts and supplier relationships and check if they are the best option in the current market scenario. Companies in the mining industry are increasingly considering factors such as the quality of the services or products as a crucial factor. This shows that suppliers in the mining industry need to access other factors as well apart from costs to compete in the market efficiently.
Dealing with the unexpected surge in the operational costs in your mining business? Request a free demo below and access the best-in-class practices in mining procurement to contain costs.