Mining Industry Challenges
Mining companies over the past couple of years have experienced a tragic set back in terms of losses faced and low return on investments. With companies in the mining industry shifting from a manufacturing-based business model to a service-oriented business model, the need to identify potential value opportunities and make savvy deals has come to the forefront.
Over the last couple of years, commodity prices have reached both historic highs and lows, and with operational entities shifting irrevocably in the face of the digital revolution, demands for efficiency and strategic sourcing process have skyrocketed in the mining industry. However, new technology trends in the mining industry, especially in the form of new mining software, are offering exceptional opportunities to the companies who are ready to embrace digital technologies to boost efficiencies.
Improving procurement and adopting a sourcing process is a viable alternative for companies in the mining industry. Companies who adopt a strategic sourcing process can categorize and deploy the right sourcing strategy and negotiate favorable terms with suppliers.
Having a central repository for all sourcing information enables you to see the big picture in a simple way, allowing you to analyze risks, security, and pricing policies. A strategic sourcing process also avoids costly errors and reduces overall spending. Contact us to know more about the strategic sourcing best practices.
Standardizing Procurement Processes and Identifying Procurement Trends with the Help of Strategic Sourcing
The client is one of the fastest growing mining industry firms in the world and employs over 1500 professionals across various economies. The main objective of the mining company was to enhance value for stakeholders by discovering, acquiring, developing, producing, and marketing mineral resources profitably, especially in the segment dealing with coal production.
The Business Challenge
The client, a renowned company in the mining industry with business operations spread across the globe, wanted to develop robust sourcing analysis capabilities across categories and geographies to enhance their visibility into spending and drive higher savings. Additionally, by identifying and adhering to strategic sourcing best practices, the mining industry firm wanted to analyze the procurement trends and implement procurement automation technologies to streamline their sourcing processes, increase savings, and boost transparency.
The client noted that their annual spend on logistics and sourcing activities was going overboard. This prompted them to adopt best practices to streamline their supply chain, warehouse management processes, and inbound and outbound transportation functions. To do so, the mining company collaborated with SpendEdge to leverage a strategic sourcing process to analyze the benefits of strategic sourcing in procurement.
To remain competitive and relevant in today’s dynamic market, it is necessary for mining companies to utilize the most beneficial strategies. Implementing an effective strategic sourcing process can make a tremendous difference in the supply chain of mining companies of all sizes. Request a FREE Proposal!
With the help of SpendEdge’s recommendations on the strategic sourcing best practices, the mining industry client deployed a comprehensive technology solution that integrated their end-to-end procurement process from source to contract. Additionally, to improve their existing strategic sourcing process, the mining industry client developed a best-practices methodology to reduce sourcing cycle time by creating a long-term interrogable repository of supplier responses and strategic sourcing process activities across business units.
By improving their strategic sourcing process, the mining industry client was able to take advantage of new opportunities, unforeseen circumstances, and changing market trends. Additionally, identifying the strategic sourcing best practices helped them to categorize and deploy the right sourcing strategy and negotiate favorable terms with suppliers. The devised strategic sourcing process helped the mining industry client to identify savings of 35%, compared to their current spend.
In an evolving global marketplace, using a strategic sourcing process to identify the best suppliers can help mining companies to maintain efficient and effective supply chains across all company divisions and partners. Request a FREE Demo below!