Success within the mining industry, especially in the current economic climate, relies on the sum of parts of a large supply chain or production line.
A breakdown anywhere throughout a business’s supply chain can lead to detrimental results, including; reduced productivity, output and efficiencies, increased equipment downtime, worker injuries and ensuing compensation claims, a loss of reputation and of course, profitability.
Without setting actions in motion to mitigate the risk of these breakdowns occurring and causing costly consequences, companies and businesses are setting themselves up for failure. Every business or operation involved in this industry therefore needs to identify critical risk areas, and put a plan in place to control and mitigate those risks.
Pre-qualifying a supply chain can be the first step towards this, by identifying the types of risk that can affect your company such as health and safety, environmental, financial, legal and regulatory.
Mining companies are fuelled by contractors and suppliers. Therefore, protecting your company brand must start with knowing these contractors and suppliers, being up to speed with what they are doing on your site, what credentials and licenses they have to be performing that work on your behalf and identifying any risks that may be involved with the work they do on your site. Why? – Because any accidents that happen on site could have negative impacts to both company and brand with long-term ramifications.
Supplier qualification for lasting success
In the increasingly competitive mining landscape, prevention beats a cure.
A streamlined supplier qualification program can assist in identifying potential risks before they amount to debilitating issues, allowing you to proactively address these issues and prevent an onslaught of damage. Not only will this add value to your shareholders, identifying and managing risk allows your company to reduce both indirect and direct costs that will undoubtedly affect profitability.
Unfortunately, for large companies that rely on the collaboration of a huge number of individual parts, there is a lot that can go wrong. To name just a few of the top 10 reasons why supplier qualification fails; ineffective communication, poorly defined and inappropriate standards, poor enforcement and a lack of sophisticated technology can all contribute to poor business outcomes.
On the flip side, companies that seek to implement a supply chain qualification program with checks and balances and adequate communication systems can realise a continuous process of improvement and profitability.
BROWZ offers a complete supply chain qualification and management solution that addresses your needs related to sourcing and qualifying contractors, identifying risk within your supply chain, managing employee-level data and conducting safety auditing.
To see how your company could benefit from implementing a supply chain qualification program, download your eBook – Top 10 Reasons Supplier Pre-qualification Fails & 10 Ways to Ensure Success.