Service Delivery Strategy: Trends in Mining Industries

Mine operators are increasingly outsourcing non-core business processes. Often, the maintenance issue is treated as a non-core business by the mining industry. In today's business environment, many industrial operators/users are interested in buying performance rather than physical products. It is a common practice for an original equipment manufacturer (OEM)/supplier of a product to own, operate, maintain, and support his product. Product performance in general is defined in a negotiated agreement. Even in a conventional product scenario a user/mine operator often prefers to outsource maintenance to OEMs or contractors in order to focus on core business goals. This paper reviews the recent trends in delivery of product support within segments of the mining industry. In this paper, we advocate the adoption of 'solution-selling' and 'total care solutions' into the mining industry. There appears to be a strong likelihood that these concepts can benefit the mining industry. Solution selling and total care solutions are seen as applicable to the mining industry because the product/equipment utilised in this industry are specialised and often expensive. The strategies addressed in this paper support a mine operator's option to buy processes instead of physical products, and the increasing demand for a total solution.