Global Mining Equipment Market Analysis
Innovation is a defining word that is shaping the future of the mining equipment industry. Unprecedented advancements in technology are touching many facets of the mining equipment market, right from personnel management to environmental footprint. However, innovations have long been at the heart of mining equipment manufacturers, but as technology continues to evolve at a rapid rate, mining equipment manufacturers need to look for new ways to leverage new technologies to remain innovative and agile in a changing market.
Despite new technological innovations and promising growth prospects, mining equipment manufacturers are expected to face a plethora of challenges including health and safety issues, access to capital, volatility in commodity prices, environmental footprint, market volatility, and weak global demands. However, factors such as volatile commodity prices make it extremely difficult for mining equipment manufacturers to plan income and, therefore, expenditure. Also, recent disruptions in commodity prices have forced many mining companies to close down operations or make serious cuts in the size of their workforce. As a result, mining equipment manufacturers are focusing on improving procurement spend management and reducing costs, now more than ever.
Mining equipment manufacturers are constantly on the lookout for new and more effective ways to shed costs to improve operational efficiency in an unstable market. Are you one among them? If yes, contact us today to leverage our procurement spend management solution!
Spend Management Solutions: Managing Overall Business Spend for a Mining Company
With their core focus on mining, the client is Canada’s largest diversified mining company. They are interested in the exploration, development, processing, smelting and refining of metallurgical coal, copper and zinc. The company currently owns 13 mines throughout Canada, the US, Chile, and Peru.
The Business Challenge
As the mining equipment manufacturers depend heavily on commodity price forecasts to make major strategic decisions, any volatility in the commodity prices affects their overall business growth. The client, a leading mining company, found it very challenging to manage to spend due to the fluctuating commodity prices. Moreover, with disruptions in commodity prices, certain sections of their operations had to be shut down, prompting the mining equipment manufacturer to make serious cuts in the size of their workforce.
The client realized the need to leverage a procurement spend management solution to manage all their business spend and take strategic business decisions.
Other challenges faced by the mining company included:
Problem Statement 1
Changing market conditions and sluggish demand growth resulted in a steep decline in profits in the mining industry. Thus, the client wanted to leverage procurement spend management solutions to manage the overall spend of the company.
Problem Statement 2
With declining profits, the mining equipment manufacturer wanted to raise productivity and cut costs with effective spend management solutions.
Problem Statement 3
The mining equipment manufacturer wanted to prioritize their cash commitments effectively. They also wanted to improve their cost structures to cushion themselves from adverse price movements and extra expenditures.
Getting a comprehensive view on relevant processes and spend categories will help you focus on process improvements and cost savings, providing greater control over spending. Request a FREE proposal to leverage our spend management solutions.
To help the client tackle challenges pertaining to the shifts in commodity prices, SpendEdge adopted procurement spend management solutions. SpendEdge’s procurement spend management solutions helped the mining equipment manufacturer to optimize all source-to-pay (S2P) processes, such as spend analysis, strategic sourcing, contract management, and supplier relationship management. Management of these processes allowed the procurement team to focus on driving strategic initiatives and achieving organizational goals. Leveraging a spend management solution also helped the mining equipment manufacturer to increase spend visibility, accountability, and facilitate cross-functional collaboration.
With SpendEdge’s procurement spend management solution, the client was able to better manage the spend, even during instances of fluctuations in the commodity prices. Additionally, the mining equipment manufacturer was also able to prioritize their cash commitments effectively, which raised productivity and helped identify savings of 35% in a year.
Are your interested to leverage our spend management solutions? If yes, Request a FREE demo!
Why Leverage SpendEdge’s Procurement Spend Management Strategy?
Managing business spend is very important for organizations that mainly deal with manufacturing, purchasing and procurement. From selecting suppliers to set up contracts, businesses should have a holistic view of procurement throughout the enterprise. Spend management solutions go beyond procurement, requiring business units and finance departments to align around spend categories.
Getting a comprehensive view on relevant processes across organizations to spend categories will help you focus on process improvements and cost savings, providing greater control over spending. Furthermore, spend management solutions helps businesses control and optimize the money they are spending.
Get in touch today to learn how procurement spend management solutions can help streamline your business.