Mining,metals and minerals Case studies Archives - SpendEdge

Category: Mining,metals and minerals Case studies

Cost Benefit Analysis for a Leading Player in the Mining Industry – A SpendEdge Case Study

Business Challenge

The mining industry client was facing challenges in identifying the most cost-effective blend of counter-measures to save themselves from a potential loss in the coal production category.

About the Client

One of the fastest growing mining industry firms, employing over 1500 professionals across various economies. Their main objective is to enhance value for stakeholders by discovering, acquiring, developing, producing, and marketing mineral resources profitably, especially in the segment dealing with coal production.

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Engagement Overview

A leading firm in the mining industry, specializing in the coal production category, was looking at developing a cost model for realistic apportionment of costs incurred for each product and sub-products that are part of the operation. To do so and to enhance business efficiency, the client approached SpendEdge to help them leverage cost benefit analysis based solutions. A detailed quantitative analysis of various cost factors within the supply chain network was carried out to identify the indirect and direct spend categories.

Benefits of the Engagement

The cost benefit analysis engagement helped the mining industry client to understand the economic impact of inappropriate business decisions. The developed cost benefit analysis model helped them control indirect costs and save themselves from a potential loss. Our cost benefit analysis experts worked as an extension of the firm to uncover major opportunities for improving their sourcing strategies by controlling indirect and direct spend.

Importance of Cost Benefit Analysis in Procurement


Ferrous Metals Market Category Management: How the Company Implemented a Best-Fit Category Management Strategy

Engagement Overview

A leading ferrous metals market player wanted to develop a strategy that aligns with their business goals. To implement an integrated category management strategy, the ferrous metals market client approached SpendEdge to devise a comprehensive approach to category management.

A detailed quantifiable analysis of various categories within the supply chain was carried out to identify and benchmark the industry best practices to be followed by the client.request proposal

About the Client

A major in the ferrous metals market with business units spread across 10 countries.

Business Challenge

The ferrous metals market client was facing challenges in developing an integrated category management strategy to analyze their supply chain processes and increase focus on key areas that drive business value.

How did SpendEdge Help the Client?

Step 1: Devised a three-step strategic implementation plan

The application of the developed category plan was carried out in a three-step approach. It included all the key implementation processes, making it easier for the category management team to follow.

Step 2: Developed a category plan based on market insights and recommendations

The category plan helped the client address key areas of category management. The plan included category strategies, goals, opportunities, gaps, product assortment, placement, pricing, and targets.

Step 3: Compiled questions to be answered in the category plan

This step of the assessment was aimed at gathering data from several sources and identifying the key questions that had to be addressed in the category plan.

Key questions answered in this category management engagement

Benefits of the Engagement

The ferrous metals market client was able to eliminate the fragmented buying behavior of their clients to achieve sustainable savings across the organizations spend profile.

Why incorporate category management?

Today, the gradual deregulation in the energy industry has initiated several expansion plans that have subsequently given rise to a supply-demand mismatch in corresponding end market segments. Factors such as these are compelling leading companies to adopt precise category plans. Moreover, category management is a proven and effective way to utilize market data and increase sales.

Category management also enables category leaders to influence, control, and manage the category to drive significant savings. However, implementing a best-fit category management strategy is the key to open a whole host of new opportunities for businesses across ferrous metals market.

Our Findings

With the help of SpendEdge’s category management solutions, companies in the ferrous metals market can reduce wasteful spending; thereby, helping companies to compete more effectively. Furthermore, a robust category management solution acts as an instrumental technique to improve category sales and deliver operational excellence.

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Spend Analysis Engagement: How a Sheet Metal Fabrication Company Enhanced Visibility Across Various Spend Categories

Engagement Overview

A leading sheet metal fabrication company wanted to gain a detailed visibility into their spend patterns. To aggregate raw spend data from numerous sources across the organization including – ERP, procurement, accounts payable, the sheet metal fabrication client approached SpendEdge to devise a comprehensive approach to spend analysis by implementing spend management based solutions throughout their global supply chains.

A detailed quantitative analysis of various categories within the supply chain was carried out to identify spend patterns and benchmark the best practices to be devised. Spend analysis also helped the client monitor the variables that could possibly impact the organizational spend. request proposal The variables included –entry of new players, consolidation within the sector, macroeconomic factors, and technological developments affecting the growth of the sheet metal fabrication market.

About the Client

A renowned company specializing in sheet metal fabrication with business units spread over 100 countries.

Business Challenge

The sheet metal fabrication company was facing difficulties in assessing spend patterns.

How did SpendEdge Help the Client?

Step 1: Identification and collection of spend data from several resources

SpendEdge’s spend analysis experts followed an organized approach to collect and consolidate spend data from all the business units into a central database. It included data from sources like e-procurement systems and accounts payables.

Step 2: Benchmarking of standardized processes

Implementation of spend management tools helped the client benchmark best practices.

Key questions answered in this spend analysis engagement include

Benefits of the Engagement

With the help of SpendEdge’s spend analysis engagement, the sheet metal fabrication client segregated the organization’s data silos, which helped them transform spend and contract data in an efficient and cost-effective manner. The client also reduced the irrelevant information and extracted precise content to enhance visibility across various spend categories within the sheet metal fabrication space.

Why incorporate spend analysis solutions?

Today, it is quintessential for sheet metal fabrication companies to break down their individual data silos to better identify collaborative procurement opportunities. However, it is almost impossible to implement a common accounts payable system or ERP with same data structure throughout independent units. Spend analysis offers excellent means to reach the desired result by aggregating data from several sources to provide the desired visibility.

Our Findings

Today, procurement teams that use spend analysis are able to better analyze their spend patterns, which will eventually result in higher returns and superior business outcomes. Besides, with the recent increase in focus on cost reduction, sheet metal fabrication companies are focusing on enhancing their spend management capabilities.

Furthermore, a robust spend analysis engagement offers improved visibility into an enterprises’ procurement spend, which subsequently allows them to consolidate their supplier’s management and spending.

To know more about our spend analysis solutions for sheet metal fabrication companies

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Supply Chain Risk Analysis Engagement Helps an Industrial Minerals Manufacturer to Redefine Their Risk Management Strategies

Supply Chain Risk Analysis Engagement Overview

The industrial minerals manufacturing client wanted to proactively address the growing complexities of their global supply chain. To gauge the performance of their supply chain, the client approached SpendEdge to devise a comprehensive approach to supply chain risk analysis. A detailed quantitative analysis of the supply chain was carried out to accurately forecast production and inventory needs of the industrial minerals manufacturer.

With the help of this risk analysis engagement, the industrial minerals manufacturer redesigned their risk management system, uncovered risk factors, and included proactive risk mitigation strategies. request proposal The client also integrated risk prioritization as a core strategy in their current risk management system.

About the Client

A multinational company specializing in industrial minerals manufacturing based out of the US. 

Business Challenge

The industrial minerals manufacturing client was facing difficulties in gauging the risks and performances of their supply chain.

How did SpendEdge Help the Client?

Step 1: Developed a framework to gauge the impact each factor involved in the supply chain

This step involved the quantification of the supply chain activities and their contribution to the flow of materials both in physical and monetary terms. This helped the client to assess the importance of each factor impacting the overall performance of the supply chain.

Step 2: Mapped the supply chain activities

Identification of activities, resources, establishments, and regulatory requirements that are required to create a flowchart to obtain an overview of the supply chain activities. This step also offered insights into the flow of raw materials and products throughout the supply network.

Key questions answered in this supply chain risk analysis engagement include

Benefits of the Engagement

With the help of SpendEdge’s risk analysis solution, the industrial minerals manufacturing client analyzed every stage of their supply chain activity, starting from the acquisition and risks of supplies from the suppliers to the delivery of finished products to the end-user segments. The client also determined the impact of factors affecting the supply chain and delivered the finished products more quickly and efficiently to the end-users.

Why incorporate supply chain risk analysis solutions?

Supply chain risk analysis helps companies in the industrial minerals manufacturing space to identify the supply chain activities and processes that can be bypassed to reduce inventory costs and improve forecasts. Risk analysis also helps organizations to optimize their supply chain processes and minimize redundancy while assisting in the creation of enhanced value-added outputs.

Our Findings

Supply chain risk analysis incorporates a wide range of functions that may seem intimidating even to a well-established industrial minerals manufacturing firm. However, it can be effectively modeled by dividing them into several strategic areas. A robust supply chain risk analysis study that aims to regulate current real-world practices in supply chain risks indicates a radical take-off from conventional models.

Additionally, it is important for organizations to redefine their risk management strategies and implement a continuous approach to detect supply-side risks and prioritize them to drive business value.

To know more about our supply chain risk analysis solutions for industrial minerals manufacturers

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Improving Overall On-time Deliveries with Supply Chain Risk Analysis for a Sand Mining Company

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.request free proposal

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

The Results

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.

To know more about our supply chain risk analysis solutions for mining industry clients

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