Short-term Planning for Natural Resources / Mining

Expand Your Short-term Planning for Natural Resources / Mining

With River Logic

The goal of short-term planning in the Mining sector is to ensure the right product is delivered to the right customer, while maximizing the company’s overall profit contribution. These companies’ value chains are extremely complex, and therefore the optimal solution must consider mine production/processing, blending (at the mine, railway, port, etc.), transportation and customer contracts (including prices, penalties) and trade these off against their revenue and cost implications to find the optimal plan.

Evaluate capacity decisions including production sourcing, shift configurations and use of regular and over-time labor by production lines

Consider trade-offs between capacity, inventory build-ahead, service level and financial performance

Efficiently allocate investments including six-sigma projects, machine re-builds, brownfield and greenfield expansions considering operational impacts (e.g. uptime, throughput, asset flexibility) and financial performance (revenue, profit, NPV)

A Step-by-Step Guide

to Driving Business Impact with Capacity Panning

What can you do with it

Create optimal plans that ensure the customers get their minimum requirements on time while considering blend given penalties for off-grade product and opportunity cost for over-delivering on product quality

Consider port throughput and shipping schedules/capacity as part of the overall solution

Evaluate trade-offs between revenue, profit/cost, customer satisfaction and risk

Represent sourcing, blending and transport optionality as integral components of your end-to-end business process while considering product substitution and business policy decisions

Unique Value / Impact

Increase revenues by up to 3% by ensuring the right materials are available and optimally loaded on each ship

Improve profit margins by 1-5% of revenue through identifying the optimal combination of product deliveries, transportation, blending and sourcing/mine processing, considering their revenue and cost implications

Increase customer satisfaction by ensuring on-time delivery of blends that are on-spec

Reduce wastages by making better use of existing materials across mines and stockpile locations

Drive efficiency and agility into the planning process, enabling the organization to generate plans with significantly less effort while quickly reacting to unplanned circumstances

River Logic Demonstration