Operations
in the mining industry is guided by two contextual factors : the production factors and the capacitybased factors . The key for mining companies is to identify and assess how critical outsourced processes are to the organization .
The outsourcing process is detailed in a five stage process model . The first stage is identifying the noncore and core activities and analyzing the possible scope of the outsourcing as well as risks and benefits . Mining companies should always retain complete control over its core functions .
Second stage is the evaluation of desired criteria from suppliers . The third stage is the selection and negotiation of an agreement with suppliers with the fourth stage being the implementation of suppliers . The fifth and final stage is supplier performance with possibilities for continuous improvements .
To be strategic companies must first look for overall business improvements rather than simple cost cutting measures . Focusing on central activities for organizational success is the first step in identifying potential outsourcing needs .
‘ When done right , the benefits of outsourcing can be paramount .’
Mining operations consist of a number of processes , which vary in importance depending on the type of mine and mineral being mined . Large teams of specialists are often required , and specialist consultants are more likely to be able to provide and coordinate such a team .
Benefits of outsourcing By outsourcing certain job functions , companies can spend more time concentrating on goals , achieving better customer satisfaction and therefore earning better profits . When done right , the benefits of outsourcing can be paramount .
Benefits include more innovation , quality , independence , reduced overheads , choice and continuity . Outsourcing allows companies to reap the benefits of comprehensive services and added expertise .
Accenture , for example , provides mining companies with outsourced support services in a variety of commercial and it areas . Their
10 S eptember 2014