Abstract:

The pandemic induced supply chain disruptions have impacted every industry. Mining projects and operations are especially hit hard due to the remoteness of the assets and heavy reliance on optimized sourcing strategy. The rotational spread of the COVID-19 from Asia to Europe and the Americas have caused, on one hand, travel restrictions and schedule delays in vendor data submittals, components supply by subvendors, manufacturing progress, shop inspections, logistics, border-crossings and productivity loss; and on the other hand, cost increase due to alternate sourcing, expedited shipment, elongated construction period, PPE supply, social distancing requirements, force majeure declarations and claims.

Many companies may have accustomed to this new normal through certain immediate measures but may have not necessarily considered to build a resilient supply chain to manage future crisis like this pandemic. Discussion of reverse globalization, regionalization and localization is more of a buzzword than reality as the cost benefit of global sourcing remains vital and attractive to many of the mid- to junior level miners. More realistic approaches, therefore, in building resilience should include at least risk-based supply chain visibility that provides real time picture of the value chain down to lower tiers of sub-suppliers; strategic supplier relationship management, risk-based inventory management; diversification and localization of supply base and employment of technology based integrated supply chain management system.

The pandemic has taught us a great lesson - not to take a resilient supply chain for granted. Are we ready for the next disturbance?

Biography of the presenter: John Chen is a global director for procurement at Hatch with over 30 years of experience in procurement and contract management at both the project and functional levels. John’s project expertise covers mining and metals, oil and gas, infrastructure, thermal, nuclear and hydroelectric power industries. John is a strong advocate of delivering procurement value through early engagement, proactive collaboration and continuous improvement.

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Mr. John Chen