Procurement has long been a vital function in the mining industry. It supports operations by ensuring that materials, equipment, and services arrive on time and within budget. But in today’s complex and fast-changing environment, traditional procurement approaches are no longer enough. What’s needed is a broader, more integrated strategy — what we call Procurement 360°.
This article explores what Procurement 360° really means, and how mining companies can implement it in a way that drives efficiency, sustainability, and long-term value.
What Is Procurement 360°?
Procurement 360° is a comprehensive approach to procurement that goes beyond purchasing. It looks at the full lifecycle of procurement — from demand planning and supplier selection to performance management and long-term partnership building. It considers not just cost and quality, but also risk, innovation, sustainability, and alignment with business goals.
This approach transforms procurement into a strategic function that plays a key role in value creation, especially in industries like mining where supply chains are long, global, and often volatile.
Why It Matters in Mining Industry
The mining industry faces unique challenges:
- Remote locations
- Heavy reliance on suppliers and contractors
- High equipment and logistics costs
- Environmental and social pressures
- Volatile commodity prices
Procurement 360° helps address these challenges by bringing better visibility, risk control, and long-term thinking into the procurement process.
Key Steps to Apply Procurement 360° in Mining
1. Start with Cross-Functional Planning
Before you buy anything, involve key departments — operations, maintenance, finance, sustainability — in procurement planning. Understand what’s needed and when, and plan sourcing accordingly.
2. Segment Your Suppliers
Not all suppliers are the same. Categorize them based on risk, criticality, and value. Strategic suppliers (like those providing critical mining equipment or services) should be treated as long-term partners, not just vendors.
3. Invest in Digital Procurement Tools
Use digital platforms to centralize sourcing, track spend, monitor supplier performance, and analyze risks. Tools like e-sourcing platforms, contract lifecycle management, and spend analytics help streamline processes and make smarter decisions.
4. Measure More Than Just Cost
Look at total cost of ownership, not just unit price. Consider delivery reliability, service levels, quality issues, and even ethical sourcing. Create scorecards and KPIs that reflect your company’s values.
5. Build Sustainable Supplier Relationships
Work with suppliers that share your ESG (Environmental, Social, and Governance) goals. In mining, this could mean choosing local suppliers, encouraging ethical labor practices, and selecting partners that minimize environmental impact.
6. Embed Procurement in Project Planning
Too often, procurement is involved late in project development. Change that. When procurement is involved early, it can help select better partners, avoid delays, and ensure better contract terms.
7. Train Your People
Procurement 360° requires a shift in mindset. Invest in training your team — not just on processes, but on negotiation, supplier engagement, risk management, and ESG topics.
Benefits of Procurement 360°
✅ Reduced Costs through smarter sourcing and better planning
✅ Increased Reliability with more transparent supplier performance
✅ Better Risk Management in volatile supply markets
✅ Improved ESG Performance by aligning with responsible suppliers
✅ Greater Innovation by tapping into supplier capabilities
Procurement 360° isn’t a buzzword. It’s a strategic approach that aligns procurement with the core goals of your mining business. It requires collaboration, technology, and a commitment to long-term thinking.
In mining, where every delay or disruption can cost millions, this kind of integrated procurement model is not just a nice-to-have — it’s a competitive advantage.
Start small. Pick one area — maybe supplier performance management or early engagement in projects — and build from there. Over time, the impact will be significant.
You also need to read below article :
1. Procurement 360°: A Step-by-Step Guide for Beginners
2. The Impact of Procurement 360° in the Mining Industry
That’s all from me. I hope you find this valuable and insightful!
“Transforming Supply Chains, Empowering People, Delivering Results – Eddy Suryadi”
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Originally posted 2025-05-10 08:00:01.