Overview of the global sand mining industry
Globally, the demand for sand mining is increasing owing to the recent rise in urban development and growing popularity of hydraulic fracturing technology. This recent increase in hydraulic fracturing activity, or “fracking,” to drill for oil and gas is expected to increase the demand for industrial sand since it is used to prop open fissures in the rock.
However, despite such promising growth prospects, our analysis of the global mining industry shows that sand mining companies across the globe are facing challenges in terms of:
- Technological capabilities: As technologies continue to proliferate, it becomes essential for companies in the sand mining industry to stay up-to-date of new developments to enhance production efficiency. Moreover, the unavailability of latest equipment can affect the extraction process.
- Scarcity of raw materials: The sand mining industry is nearing saturation with exponential growth in mining activities over the last couple of years. As a result, firms are facing supply shortages for the products among the end-user Moreover, businesses today are forced to maintain supply consistency in their products offered.
Several such factors are compelling firms in the mining industry space to leverage the use of supply chain risk analysis solutions. Supply chain risk analysis solutions help firms truncate their supply chain and improve: customer service, lead time, transportation risks, the risks associated profitability, and order-fulfillment times.
The Business Challenge and Journey
Client background: A UK-based sand mining company was facing challenges in terms lack of visibility for their import supply chain, a follow-on effect from a lack of shipment status reports. They were also facing issues with the customer’s de-centralized, direct dealings with local customs brokers (CHB), truckers, yards for storage, and inland container depots (ICD).
Client issue: High turn-around time and low visibility led to higher inventory requirements and high demurrage and detention costs. The overall difficulty in coordinating and managing multiple parties led to CHB issues, while the general unreliability of shipments reaching the factory on time created production delays, productivity loss, and bottlenecks.
To help the client reduce production delays, productivity losses, and bottlenecks, the supply chain risk analysis experts at SpendEdge conducted a comprehensive research and carried out discussions with prominent stakeholders in the mining industry.
Client journey: The client devised an integrated port-to-factory solution that would optimize the supply chain design, improve shipment visibility and control. Furthermore, the client integrated port-to-factory activities including shipment visibility, trucking, CHB, and warehousing.
Key questions answered in this supply chain risk analysis engagement
With the help of SpendEdge’s supply chain risk analysis solution, the sand mining client gained a ‘helicopter view’ of all processes, in alignment with their carriers. This has helped to minimize supply chain inefficiencies and improve the overall on-time deliveries.