Sourcing for mining and natural resources, where regulatory compliance and product quality are top priorities, increasing value without compromising service levels is crucial. The lowest cost option is not always the best choice. The strategic sourcing initiatives help organizations to analyze current spend against the marketplace, spend analysis, or benchmarking to identify practical and beneficial savings opportunities.
In addition to cost reduction, the service level increases and develop long-term supplier relationships. Having a healthy supplier relationship is also crucial since innovation is a key importance to the mining and natural resource industry. Working towards the strategic supplier partnership will benefit organizations in many resources such as securing exclusive rights to the supplier’s improved technology and practices; sharing environmental management techniques and knowledge; provide solutions to deal with materials used in the mining processes, and discussing on such imperative issues.
Handling and transporting regulatory body’s certification for mines, when engaging such suppliers in early material planning discussions, help them clearly understand the requirements and to avoid delivery/transportation delay.