Abstract
Background
The global pandemic brought supply chains to the forefront for many mining organizations and suppliers. Supply Chain Resilience – the ability to withstand changing markets, new threats, and succeed in disrupting competition – was taken for granted as something that inherently existed if dealing with reputable suppliers.
Painful lessons were learned about the lack of understanding and visibility of multi-tier supply chains – especially MRO (spare parts) and chemical/reagent process inputs. As supply chains were disrupted, a chain reaction occurred where orders were rapidly consolidated to suppliers with the shortest lead times. Fear of scarce supply caused stockpiling behaviours, and order quantities to drastically increase. This only exacerbated challenges with scarcity of supply and further increased lead times.
Challenge
During the pandemic, resiliency meant simply avoiding supply shortages with the potential to disrupt production or lead to unfulfilled production commitments.
Emerging from the pandemic, even though commodity prices have been strong, significant inflation has put profits under pressure, and has meant that organizations cannot simply “order more” in order to de-risk operations.
Resilience cannot be pursued as a single objective or priority in isolation. A challenging and dynamic equilibrium must be evaluated and monitored, which considers:
- Supply Chain Resilience - The ability to withstand changing markets, new threats, and succeed in disrupting competition.
- Supply Chain Agility - The ability to respond quickly and effectively when disruption happens.
- Supply Chain Efficiency - The ability to improve/optimize performance outcomes such as cost, service, quality, inventory (working capital), and asset performance.
Discussion/Dialogue
Our CIM conference presentation will focus on exploring “The New Equilibrium” of
- Supply Chain Resilience,
- Supply Chain Agility, and
- Supply Chain Efficiency
including trade-offs between the 3 objectives/priorities and strategies for balancing and enhancing capabilities.
Presenter
Joel Allen – Senior Manager, Deloitte
Supply Chain & Network Operations
Leader in Deloitte’s Global Mining Center of Excellence
Jim Kilpatrick – Partner, Deloitte
Global Leader of Supply Chain & Network Operations
Preferred Format
- Panelist discussion
- Fireside chat