Inventory Optimisation for Mining & Heavy Industries
Barloworld Supply Chain Software has extensive
experience of providing inventory management software solutions to
the mining and heavy industry sector, boasting a lengthy list of
It is imperative that companies working within this sector
possess detailed knowledge of the industry because there are major
implications due to health & safety, environmental
considerations, increased global demand and legislation. All these
factors have an impact on the business risk, with the result of
exceptionally high downtime costs.
It differs from traditional inbound logistics in that demand is
not dependent on the ultimate market requirement for the
manufactured product, but on the maintenance and consumption needs
of the end-users (plant maintenance engineers and production).
Maintenance and Repair Operations (MRO) management is a highly
sophisticated process and due to the high risk of breakdowns and
work stoppages, stockholders often keep more inventory than is
necessary. This leads to unbalanced inventories and high levels of
obsolescence and poor service to end-users.
Operational Downtime is not an option with Optimiza
There are many issues which contribute to operational downtime
within the mining & heavy industry which, if addressed and
managed correctly, can actually be kept to a minimum or removed
from the equation. Inadequate material management is an important
one encompassing the following three elements:
Warehouse Management - This can lead to
operational downtime due to capacity and sub-optimal levels of
stock requiring storage at various warehouses and thus indicating
mismanagement of materials. This then affects lead times and has a
knock on effect resulting in negative productivity.
Procurement - Problems also occur when
procurement is decentralised and duplicate orders are made causing
excess and redundant stock issues.
Inventory management -Unless inventory
management of item classification, forecasting, stock holding
policy and lead times is vigilant, critical item availability will
be complicated and have a huge effect on the overall materials
management and thus the operational downtime.
In addition to these factors, lack of Management Information can
mislead management decisions which will also then have an impact on
Optimiza Inventory Management Software Digs Deep
Barloworld Supply Chain Software is a world leader in
the provision and management of inventory and service optimisation
solutions in the MRO arena. This stature comes from being one of
the few inventory optimisation solutions to have combined the
world-class skill to build MRO solutions with the business
experience necessary to implement and operate them.
Through our extensive experience and knowledge of the
environment and using the Optimiza inventory management software,
we have helped Barloworld SCS customers to accurately classify and
manage critical items, through an in depth criticality and item
identification process. However, without adequate material
management put in place this would not be sustainable, so we have
worked with our clients in designing, implementing and entrenching
material management programmes that have minimised inefficiencies
and increased productivity.
Hennie Kaltwasser, Manager Engineering at Ticor
Empangeni, points out the main advantage of outsourcing
critical materials management functions.
"To implement modern good management practices in our company's
line of business, such as just-in-time inventory, total quality
management and end-to-end supply chain management, needs certain
business dynamics in the company as well as the flexibility to
adapt rapidly to changing conditions and business processes. Our
relationship with Barloworld Supply Chain Software has
demonstrated that the outsourcing of materials management functions
gives a flexibility far greater than that which can be achieved
with in-house resources.
"To enter into this type of business relationship - which is
based on trust - requires maturity and team work from both
partners, if it is to succeed. Barloworld Supply Chain Software has
offered our company both those qualities, as well as their depth of
expertise within our industry. What is more, Barloworld SCS
flat management structure gave us the added advantage of easy
access, quick decision making and the flexibility needed in this
critical area of Ticor's operations."
- Harmony Gold Mining
- Billiton Alluminium Smelters
- Billiton Hillside
- Drake & Scull