Appian resources, energy and utilities account director Justin Grose reflects on how technology can transform mining supply chains for enhanced efficiency.
Supply chain disruption strikes at the very heart of mining operations. Given the immense costs tied up in mining infrastructure and the tight timelines on which projects operate, any supply chain delays can come at significant cost.
The impact of these disruptions is magnified by the remoteness of mining sites, where alternatives are few and the cost of a workaround is often prohibitively high.
The intricate web of logistics and supply that connects remote mining sites to customers around the world is not just a conduit for the essential materials and equipment needed to extract valuable resources.
It is also a lifeline that sustains the operations, personnel, and communities that make mining possible. However, this lifeline is as vulnerable as it is vital.
Digital supply chains can help mining organisations navigate disruptive forces and respond faster to volatile international supply and demand.
A wide range of complex but repeatable tasks require large amounts of data at all stages along the supply chain.
Automation can help transform key aspects of supply chain management, including automating workflows, more effectively leveraging asset data, and improving operational visibility.
Transform asset lifecycle management
For stronger business outcomes, mining organisations need better asset lifecycle management across the enterprise.
Many Australian mining organisations rely on manual processes and spreadsheet tracking, limiting enterprise-wide visibility across high priority assets including equipment, machinery, vehicles and mine site infrastructure.
Automation of key asset lifecycle operations can help improve visibility and create supply chain efficiency in areas like:
- Fleet management: Automation capabilities give organisations the ability to track fleet utilisation and costs, trip and maintenance activity, and vehicle check-in/checkout processes – all from mobile devices. Mining companies can effectively collect and utilise data on available hours for drivers, load/ticket information, job run-sheets, fuel consumption, and more, with an innovative solution.
- Track and trace: A digital control tower allows users to track geographic location, control distribution, and ensure the accuracy, authenticity, and safety of mined products in transit. This helps organisations ensure corporate responsibility and compliance with international mining regulations.
Improve supply chain collaboration
There must be a heightened focus on communication and collaboration amongst supply chain partners moving forward to make mining supply chains more agile and resilient.
Amplified engagement will boost supply chain performance and mine production. Transformation opportunities include:
- Vendor onboarding: Streamline the workflow for supplier qualification and performance measurements in the mining context. Implement a solution that improves visibility throughout to ensure reduced onboarding cycle times for suppliers of critical mining machinery and safety equipment.
- Inbound supply management: Leverage data and implement technology that ensures end-to-end transparency across the supply chain, crucial for handling the complex logistics of mining operations. Look for a platform that can unify data and processes into a single interface, allow you to adapt to changing environments, and streamline workflow with automation capabilities.
- Supply chain planning: Streamline the sales and operations planning process, creating an integrated business management process that empowers stakeholders to focus on key supply chain drivers, including sales, demand management, production and parts and inventory management. Orchestrating the planning process ensures executives have the information needed to make key decisions that drive positive financial impact.
Automating sourcing and procurement
Sourcing and procurement processes in the mining sector are growing more complex due to increased demand for accelerated timelines, heightened sustainability concerns, and the need to reduce risk with trusted suppliers.
Looking forward, mining sourcing and procurement professionals will need to turn to automation capabilities to help them improve productivity and streamline critical processes.
Sourcing and procurement are well-suited to the addition of automation capabilities. Key aspects of the procurement process can benefit from automation in areas such as:
- Procure-to-pay: Automation streamlines and accelerates the entire process, allowing organisations to increase productivity and efficiency while saving costs. Robotic process automation (RPA) removes redundant steps while enhanced workflow leads to more accurate decisions and greater process transparency.
- Contract lifecycle management: Automation capabilities can help transform contract management by allowing for standardised processes, better visibility for negotiations, and improved contracting cycle times.
Enhancing demand planning
A lack of proper demand planning puts organisations at risk of inventory miscalculations and costly mine site production delays.
With the addition of intelligent automation capabilities, mining organisations can gain more control of key supply chain processes and areas of operation, including:
- Maintenance repair and operations (MRO): With automation capabilities, companies are better able to adopt predictive maintenance programs and prevent costly machine repairs and replacements. Additionally, they can automate repair processes such as order entry, inspection, quotes, reviews and approvals, part shipment and invoice of repairs.
- Inventory and materials management: Automation allows users to manage workflow at every stage: requests for materials, cataloguing and provisioning, the movement of materials to the production line, and distribution to end consumers.
- Warehouse management: By implementing automation capabilities, organisations can improve transparency and productivity of warehouse operations, crucial for storing and managing the vast array of materials and equipment needed in mining.
The need for digital supply chains
An effective supply chain is critical in the mining sector, as it acts not just as a pathway for materials and equipment but also as essential support for the workforce and local communities involved in mining.
The integration of digital supply chains, automation, and improved asset lifecycle management offers solutions for the mining industry to address these challenges.
By adopting digitally transforming supply chain operations, mining organisations can better manage global supply and demand fluctuations, enhance operational transparency, and achieve operational efficiency and sustainability.
For more information on how your mining supply chain can be transformed using advanced digital solutions, please visit: engage.appian.com/mining
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