SGS Maine Pointe explores how mining firms can drive operational improvement
Two recent reports from SGS Maine Pointe, a supply chain and operations consulting firm, examine how mining firms can drive operational improvement as they face challenges in rising costs, limited resources, and accountability issues.
The first paper – “Propel complex mining and energy industry projects to the finish line” – explains how SGS Maine Pointe’s Total Value Optimization (TVO) method can address the root causes of the complex issues facing mining projects, including weak planning, poor communications, and lack of accountability.
TVO enables firms to dynamically anticipate and meet demand by eliminating functional silos and synchronizing the buy-make-move-fulfill supply chain. The approach aims to deliver the greatest value to customers and investors, while also achieving lowest costs to the business.
“Every part of the supply chain has a role in the solution,” said Collin Ziemerink, co-author of the report and head of industrial manufacturing & services at SGS Maine Pointe. “Leveraging the principles of TVO, planning, procurement, operations, logistics, and communications are fully aligned. As even the most complex projects reach the finish line, the changes made are then sustained throughout the company, delivering a successful project and a stronger company for future engagements.”
The second paper – “Five approaches to reduce mining operating costs” – explores how firms can address the fact that industry costs have risen nearly every year in the last decade. In 2022, for example, fuel and power costs increased 88% and maintenance and repair costs increased 47%.
To effectively reduce costs, firms need to take a full mining value approach, SGS Maine Pointe says.
“The solution, as laid out in this paper, lies in considering the entire supply chain, from mine to port and beyond,” said Ziemerink. “New ways to reduce operating costs may include leveraging data-based planning, strategic sourcing, sustainability solutions, operations excellence, and mineral services, which can ensure that even in volatile times, the mining industry can meet demands, reduce costs, and preserve profits.”
Founded in 2004, SGS Maine Pointe provides consulting in areas including operations excellence, supply chain resilience, sourcing optimization and procurement, data analytics, and sustainability. The firm has more than 200 employees across offices in the US, Canada, UK, Switzerland, and China.
