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Less Costs     =      Better Margin    =      Survive and Thrive in a storm     

 

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The future can be stormy for Mining and Metals companies….

Companies have to focus on continuous cost cutting to make sure they have adequate margins.   We can talk about other topics like growth – but unless they get costs under control…. The future is uncertain.

 

What is causing the current stormy weather that makes cost even more important now?

 

  1. Prime reserves have been depleted and the cost of extracting and processing lower-quality resources is much higher than in the past.
  2. Inefficient production processes from recent years – when high output was pushed instead of efficiency – are dragging down margins.
  3. Commodity prices will continue to be volatile.

 

 

Below are 3 top uses cases where mining and metals companies are using cloud to drive down costs.   We hear more all the time – tell me your ideas for how cloud is helping to cut costs!

 

 

Top 3 ways Cloud can help manage the stormy weather

 

1. Procurement – Cross-Site and Cross-Business Unit Leverage

 

Boliden Group is a global mining and metals company with specialties in exploration, mining, smelting, and metals recycling, and operates from multiple sites in Sweden, Finland, Norway, and Ireland.  The company is using cloud to aggregate the view of spend data across all 7 procurement sites to identify spend reduction opportunities.  They identified linkages and parentage hierarchies across 6,000 suppliers, enabling supplier optimization and better negotiation clout.  Read More

 

2. Human Resources Management, Productivity and Retention

 

Metallurgy company Vallourec uses cloud to reduce overall costs – and to have competent replacements trained when key people retire.   They have an integrated HR system across 5 languages and multiple sites that is accessible without any local installation.  All the users need is an internet browser.

Read More…

 

3. Automate and Streamline Procure to pay

 

One of the world’s largest metals companies is betting on cloud to cut costs across its more than 10,000 suppliers by automating the Procure-to-pay process efficiency through purchase order and invoice automation.  Hear more about it when it is announced October 6th at this industry conference.

 

 

And these companies are not alone!     A recent survey of Energy and Natural Resources (ENR) companies showed that: 

 

  • 95% Of energy and resources (ENR) companies surveyed believe cloud computing will transform their organization and/or
    industry

    • But only 33 % of these ENR companies are using a cloud model today for their applications
  • 80% said they would be moving to a cloud or hybrid model in the next 3 years.

 

See the infographic:    The Future of Enterprise Cloud in Energy and Resources

 

 

 

 

 

@sapmillmining

@SAPindustries

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