Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
In the survey of key decision makers at operating African mines, respondents said that ‘on-time delivery’ and ‘lead time/ speed to deliver and install equipment’ were two of the most important factors when choosing a mining equipment supplier.
However, when rating the performance of their main equipment suppliers, respondents’ satisfaction in these two areas was among the lowest, showing a clear need for improvement. With the global mining industry expanding significantly since 2005, suppliers have been struggling to keep up with demand for products and services. This has led to poorer performance in lead times and deliveries. The research suggests that suppliers can make immediate gains in customer satisfaction by improving local support, facilitating better on-time delivery and reducing lead times.
Relationship with customers is key
According to Timetric, suppliers should pay particular attention to the relationship they have with their customers. When asked what differentiated their current main supplier from the competition, respondents said their current main supplier was able to differentiate itself on the basis of product quality, understanding their needs, using the latest technologies and their ability to build a long-term relationship.
Cliff Smee, lead analyst at Timetric Mining, says: “A common issue among miners is the lack of local support. African miners work in remote and logistically challenged areas, yet, they would like to see suppliers improve lead times and on-site delivery. Suppliers who do well in Africa often have reputations for punctual deliveries.”
About Timetric
Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary. For more information and updates, please visit www.timetric.comand follow us on twitter.
