Suppliers of Excellence
The Peruvian and global mining industry face challenges such as the decline in metal prices or increases in production costs. In addition, Peru has a comparatively lower rate of investment in Research and Development (R&D) in the region with only 0.11% of GDP. This scenario represents an opportunity for Peru to remain as a significant stakeholder in global mining and for the industry’s impact on the country’s development to grow. To this end the competiveness and productivity of mining companies and their suppliers must increase.
Starting with the aforementioned challenges, in 2012 Antamina began the program “Developing Suppliers of Excellence for the Mining Industry of Peru” which has as its objectives to: i) Develop suppliers who are capable of providing increasingly complex services for the local mining industries and as well as other industries and countries; and ii) Contribute significantly to the increase in productivity of mining companies.
The program strategy consists of identifying and solving High Value Challenges – HVC in the mining operation. These challenges entail existing operational problems, inefficiencies or anomalies which have not been solved historically, where suppliers play a fundamental role in finding a new solution.
For this purpose, the High Value Challenges -HVC are shared by the operation with a broad range of supplier companies, which provides them with the freedom to address them with a more innovative approach. At the same time, spaces are created to co-design solutions between Antamina and the supplier, which fosters the development of cooperative relationships and transforms the current type of interaction that is predominantly transactional.
Following a process of strategy selection, the Logistics and Operations Departments select solutions which offer the greatest economic benefit, have more innovative components and are launched in the Operation, after first being tested in a pilot run that is monitored to ensure that the results obtained are consistent with what the supplier initially proposed. The success of these solutions enables the technological and management capabilities of the suppliers to grow.
Three (3) spheres of work have been defined for the execution of this Program:
i) Compañía Minera Antamina S.A. is the party who introduces the High Value Challenges – HVC, and invites its suppliers to co-design innovative solutions that increase the operations’ productivity and providing them with assistance to conduct the field tests needed to obtain the solutions.
ii) Suppliers are those who participate as the primary actors to find solution through their cooperative efforts with Antamina. And those who will grow as a result of their involvement, becoming capable of developing new, more sophisticated and exportable offers.
iii) Country and the Industry. This is a Shared Value program that is based on generating economic benefits for the mining company and suppliers where there is also a component that involves the generation of social value in the country through the development and growth of competitiveness and innovation on the part of suppliers, thus driving replicable solutions in the mining industry.