Mining equipment comes in all shapes and sizes, frequently equipment can be heavy lift and out of gauge. Ensuring equipment is in the right place at the right time at the right cost can be a logistics challenge for suppliers in the industry.
Our client supplies heavy lift pipes to the mining industry and the existing operation was ineffective and expensive. The location of the storage of the pipes was in a residential area that was not accessible nor in close proximity to vendors. The solution was costly due to under-utilized equipment, timelines were not met, and labor and yard rental added complexity to the operation.
Analyzing the client’s workflows, the Crane Worldwide Logistics team in Brisbane recognized immediately that inefficiencies in the supply chain process. Inefficiencies created additional costs that could be reduced by moving the storage location closer to vendors. Swiftly, the team relocated the pipe yard to an industrial area and adjusted the pricing model to associate costs with output. By understanding the workflow of our client, operations could be streamlined to remove unnecessary steps that reduced efficiencies.
The new yard location provided a reduction in direct costs of AUD$218,000 per annum. By consolidating the activities in the supply chain process through analyzing the available data, efficiencies were created. This included improved material handling, transportation, and labor efficiencies. Crane Worldwide Logistics work in partnership with our clients to understand existing workflows and improve processes to create cost reduction.