{"id":8753,"date":"2017-08-16T03:00:27","date_gmt":"2017-08-16T11:00:27","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2017\/08\/16\/news-2526\/"},"modified":"2017-08-16T03:00:27","modified_gmt":"2017-08-16T11:00:27","slug":"news-2526","status":"publish","type":"post","link":"https:\/\/www.palada.net\/index.php\/2017\/08\/16\/news-2526\/","title":{"rendered":"Let\u2019s Rethink the Importance of Value Chain Visibility"},"content":{"rendered":"<p><strong>Credit to Author: Livia Wiley| Date: Wed, 16 Aug 2017 10:26:46 +0000<\/strong><\/p>\n<p><em>By John MacDonald, Subject Matter Expert &amp; Consultant for Mining, Schneider Electric<\/em><\/p>\n<h4>Mining on the Rebound?<\/h4>\n<p>Analysts are divided as to whether we (the mining industry) are at the bottom of the market or simply entering a heightened period of volatility. Well, the Top 40 Miners have suffered a decline of 37% (2015)<sup>1<\/sup> in market capitalization, meaning many are marked below their book values and any gains made during the mining boom have now been effectively, you are right &#8211; \u201cwiped out\u201d.<\/p>\n<p>Caught in the crossfire between declining demand for commodities, volatile pricing, and increasing operational costs, many of the mining peers have undertaken significant cost-reduction measures\u2013 cutting back on new capital projects, divesting non-core assets, shutting down marginal operation. And now the mining operators are turning their attention to <a href=\"http:\/\/software.schneider-electric.com\/products\/simsci\/operational-excellence\/\" target=\"_blank\" rel=\"noopener\">operational excellence<\/a>, to wring more productivity from their existing assets. As noted by PriceWaterhouseCoopers<sup>1<\/sup>, this new productivity initiative is \u2018unchartered territory\u2019 for miners, as they bring with them a fundamental change to their assets \u2013 people, process, procedures, all for longer-term paybacks.<\/p>\n<h4>What\u2019s Next?<\/h4>\n<p>Outside of its people, <strong>inventory<\/strong> is the most important asset of any mining company.\u00a0 Inventory is most commonly defined as the entire value of materials held by an organization to:<\/p>\n<ul>\n<li>support production, e.g. raw materials, work in progress<\/li>\n<li>support activities, e.g. maintenance, consumables<\/li>\n<li>sell finished goods<\/li>\n<\/ul>\n<p>As a key indicator of a company\u2019s performance, an accurate and timely understanding of inventory is imperative for any <a href=\"https:\/\/software-solutions.schneider-electric.com\/digital-mining-transformation-mmm\" target=\"_blank\" rel=\"noopener\">mining operations<\/a>. When we speak of inventory management, we are talking about the activities employed to maintain the optimum amount of each item- be it raw materials, consumables or finished product. It also covers the quantity and quality of material at any point of time in the supply chain.<\/p>\n<p>The objectives of having visibility into the inventory are:<\/p>\n<ul>\n<li>it provides uninterrupted production and sales at a minimum cost<\/li>\n<li>knowing where inventory is located means miners can take advantage of additional sales opportunities should demand increase<\/li>\n<\/ul>\n<p>Therefore, we can see that <em>having a solid inventory management, not only affects working capital, but also the ability for miners to respond to changing market conditions<\/em>. Now, don\u2019t we all agreed, that inventory management systems is necessary for businesses to run successfully and efficiently.<\/p>\n<p> <a href=\"https:\/\/software-solutions.schneider-electric.com\/ondemand-mmm-ampla-digital-transformation-in-mining-operations-webinar\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-40079 aligncenter\" src=\"http:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/08\/DigitalTransinMining_Campaign_SocialMedia_1600x800-300x150.jpg\" alt=\"Digital Mining Transformation\" width=\"552\" height=\"276\" srcset=\"http:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/08\/DigitalTransinMining_Campaign_SocialMedia_1600x800-300x150.jpg 300w, http:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/08\/DigitalTransinMining_Campaign_SocialMedia_1600x800-768x384.jpg 768w, http:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/08\/DigitalTransinMining_Campaign_SocialMedia_1600x800-1024x512.jpg 1024w, http:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/08\/DigitalTransinMining_Campaign_SocialMedia_1600x800.jpg 1600w\" sizes=\"auto, (max-width: 552px) 100vw, 552px\" \/><\/a> <\/p>\n<h4>Let\u2019s Rethink<\/h4>\n<p>McKinsey estimates that by 2025, operational digitization would represent $370B annually in potential unlocked value<sup>2<\/sup>. What does it mean to our mining peers? That increase production, or increase profitability,\u00a0 are up for grabs, for those who can overcome the challenges associated with shifting to a data-driven business, as data-driven operations become a reality through connected devices.<\/p>\n<p>In a nutshell, miners who rethink and shift their focus to proactively look inward into its processes, and leverage technology to drive operational excellence, and achieve real-time visibility to their end-to-end value chain across extraction, smelters and furnaces, and onto storage and transportation, will be the winners of tomorrow.<\/p>\n<p>Watch <a href=\"https:\/\/software-solutions.schneider-electric.com\/ondemand-mmm-ampla-digital-transformation-in-mining-operations-webinar\">Digital Transformation in Mining Operations webinar<\/a>, and gain insights on how leading mining companies are adopting technologies to gain real-time visibility into their inventory to reduce losses, improve recovery, maximize throughput, and enable better decision-making to ultimately improve profitability. <a href=\"https:\/\/software-solutions.schneider-electric.com\/ondemand-mmm-ampla-digital-transformation-in-mining-operations-webinar\" target=\"_blank\" rel=\"noopener\">View the webinar.<\/a><\/p>\n<p><em>Source:<\/em><br \/> <em> <sup>1<\/sup>Mine 2016: Slower, Lower, Weaker but not Defeated, PWC (2016)<\/em><br \/> <em> <sup>1<\/sup>Mine 2017: Stop. Think\u2026Act, PWC (2017)<\/em><br \/> <em> <sup>2<\/sup>How Digital Innovation can Improve Mining Productivity, McKinsey&amp;Company (2015)<\/em><\/p>\n<p>  <img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/blog.schneider-electric.com\/?feed-stats-post-id=39964\" width=\"1\" height=\"1\" style=\"display: none;\" \/><\/p>\n<p>The post <a rel=\"nofollow\" href=\"http:\/\/blog.schneider-electric.com\/industrial-software\/2017\/08\/16\/lets-rethink-the-importance-of-value-chain-visibility\/\">Let\u2019s Rethink the Importance of Value Chain Visibility<\/a> appeared first on <a rel=\"nofollow\" href=\"http:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n<p><a href=\"http:\/\/blog.schneider-electric.com\/industrial-software\/2017\/08\/16\/lets-rethink-the-importance-of-value-chain-visibility\/\" target=\"bwo\" >http:\/\/blog.schneider-electric.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Credit to Author: Livia Wiley| Date: Wed, 16 Aug 2017 10:26:46 +0000<\/strong><\/p>\n<p>By John MacDonald, Subject Matter Expert &#38; Consultant for Mining, Schneider Electric Mining on the Rebound? Analysts are divided as to whether we (the mining industry) are at the bottom&#8230;  <a href=\"http:\/\/blog.schneider-electric.com\/industrial-software\/2017\/08\/16\/lets-rethink-the-importance-of-value-chain-visibility\/\" title=\"ReadLet\u2019s Rethink the Importance of Value Chain Visibility\">Read more &#187;<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"http:\/\/blog.schneider-electric.com\/industrial-software\/2017\/08\/16\/lets-rethink-the-importance-of-value-chain-visibility\/\">Let\u2019s Rethink the Importance of Value Chain Visibility<\/a> appeared first on <a rel=\"nofollow\" href=\"http:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12389,12388],"tags":[13712,12540,12581,12409,12410,12439,13022,901,12494,12438,12533,12412,13713],"class_list":["post-8753","post","type-post","status-publish","format-standard","hentry","category-scadaics","category-schneider","tag-digital-mining","tag-digital-transformation","tag-digitization","tag-industrial-process-design","tag-industrial-software","tag-metals","tag-minerals","tag-mining","tag-mining-operations","tag-miningmetalsminerals","tag-plant-operations-management","tag-simulation-optimization","tag-value-chain"],"_links":{"self":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/8753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=8753"}],"version-history":[{"count":0,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/8753\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=8753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=8753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=8753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}