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Auctus Business Consulting

We Mean Grow ®

Sector

Mining and Energy

In the Mining and Energy Sector we find companies engaged in the extraction and processing of minerals; extraction and exploitation of hydrocarbons; power generation, and; marketing and distribution of energy byproducts to businesses and users, etc.

MARKET

  • Multiple provider of supplies and similar services for state businesses where there is fierce price competition.
  • Bidding and procurement procedures, in some cases are prolonged and costly utilizing significant penalties for non-compliance and in other cases, very short and unrealistic response times for participants.
  • High logistics costs and tax rates to market minerals and energy products.

KEY BUSINESS PROCESSES

  • Planning, allocation and budgetary control
  • Inbound/outbound logistics for provisions, services and finished products.
  • Comprehensive Maintenance System for Production Equipment.
  • Management and international benchmarking model for competitiveness.
  • Quality Management Model aligned with compliance requirements and best practices.

CHALLENGES AND OPPORTUNITIES

  • High level of bureaucracy and a lack of communication as well as teamwork for initiatives that include the involvement of more than one functional area.
  • Highly regulated sector in power generation activities.
  • Insecurity due to organized crime in mining and extraction operations.
  • Assurance of appropriate operating conditions such as a renovation plan for critical / key production equipment.
  • Alignment, linking and simplification of the information systems with business procedures.
  • Overall improvement of competitiveness with a focus on low cost (lean) operations.

RECOMMENDATIONS

  1. Define, for each line of operation/business 2-3 KPI´s for benchmarking and focused improvements that contribute to competitiveness;
  2. Simplify and re-engineer internal processes, followed by a re-parameterization or adjustment of informational systems that support it;
  3. Draw up protocols and digitize the procurement process creating checklists to expedite processes and ensure compliance with all the requirements of the bidding RFP; among others…