Qmont Mining Case Study Proposal
According to the given information and the intention to make the process of supplying more centralized, several ideas can be suggested. First of all, a number of problems have to be outlined in order to comprehend the situation and make the process of dealing with it more clear.
Judging by the fact that one third of all invoices are not confirmed and that there is an overwhelming number of instances of multiple orders of the same item, it can be assumed that some sort of embezzlement takes its place. While corruption within suppliers is not the most important problem, dealing with the company’s employees is of utmost importance.
As the distance of remote locations differs from 300 to 5000 kilometres, the problem maintaining these locations is one to be taken into consideration.
In order to make the process of delivering goods as fast as possible, a proper way of communication has to be established. It is vital that only one way has to be presented, to avoid any miscommunication.
Some of equipment for remote sites can be produced within the company while some of them can be provided by other suppliers. It is essential to determine what products can be furnished by Qmont and what shall be outsourced.
After deciding which problems are necessary to solve, some ideas to prevent them can be composed. The most logical step of centralization of supplying chain is to decrease the numbers of suppliers that Qmont works with. To do that, more precise information on instances of multiple orders has to be taken to determine where embezzlement might take place. Cooperation with such suppliers shall be prohibited. While decrease of suppliers can lead to increased costs of deliveries, it is expected to be balanced by absence of multiple orders of the same item. A contract with trustworthy suppliers shall be signed. According to the contract, suppliers will be responsible for delivering orders at short notice. Therefore, the company will no longer have to prioritize the goodwill of the suppliers to the expenses. As supplies would be flown by plane or helicopter, suppliers are obliged to maintaining the equipment in good condition.
Dealing with the communication trouble shall be taken care of next as having 2 different ways of keeping in touch with suppliers will inevitably lead to breaches of supply chain in different ways. Obviously, any contacts between remote site personnel and suppliers shall be terminated as it contradicts the idea of centralization itself. Apart from that, it is known that site leaders have a steadfast and reliable mean of communication with headquarters (via satellite), it can hardly be a problem. It is necessary to mention that a person to take a position of site leader should be chosen carefully to avoid any possible case of embezzlement.
Judging by the record of total supply spends, it can be determined that several expense items can be obtained by the company itself and delivered to the remote sites by the company’s means. These are drilling equipment, MRO, …
