Mining companies can use this period of tough trading conditions by implementing an enterprise resources planning (ERP) system…
When business is slower, employees have more time to devote to the implementation of a new ERP system, but once a system is in place it can help a company flourish during periods of economic growth.
That’s according to Leon Yurak, Business Development Manager, UXC Eclipse, who said, “In an economic downturn it can seem as though the company needs all hands on deck just to keep the lights on, but actually this can be the ideal time to implement an ERP system if there isn’t already one in place. Mining organisations that fail to put an ERP system in place are risking the future growth of the business.”
He pointed out that implementing an ERP system involves a significant investment of both time and money and that it can therefore be a good idea to schedule these projects for times when the business is less busy. That allows for resource allocation to the project.
Companies operating in the Australian mining industry, which has been hit by fluctuating iron ore prices, mine site closures, and generally lower commodity prices, can make better predictions on demand, costs, and cash flow with an established ERP system, said Yurak, while helping lower costs and improve operational efficiency.
“ERP systems deliver a single, integrated view of the company, and can automate many processes, which makes the organisation far more efficient. Too many mining companies come unstuck because of the lack of visibility across their significant plant and equipment base. In some cases it is difficult to identify what plant and equipment actually exists as well as issues around substitutes and failures. This lack of visibility can be costly and inefficient,” he added.
By scheduling regular maintenance, companies can avoid breakdown scenarios that result in long periods of downtime, with an established ERP system able to help them schedule maintenance to happen when it will have the least impact on an organisation’s operations.
ERP systems also provide businesses with better visibility into internal processes, helping companies make decisions faster and more accurately.
“Being able to make the right decisions in a timely manner is crucial at the best of times, but absolutely essential when the company is going through rough times. By gaining better visibility into processes, organisations can see where improvements can be made, streamlining operations to reduce costs without compromising on performance,” Yurak concluded.
