Mining quarry

Mining company digs up savings in personal protective equipment

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Construction and Engineering

Project information

Industry: Mining
Category: Uniform & Linens
Sub-Category: Personal Protective Equipment

 

The client

The company is one of Australia’s largest mineral drilling contractors providing both underground and surface drilling services to clients across the country. They are a market leader in the development of innovative rig designs and drilling practices that deliver improved productivity, value, safety and versatility. The client is also expanding internationally with a growing presence in North America.

 

The challenge

The CFO engaged Expense Reduction Analysts to review a number of cost categories, including fleet management, telecommunications, and uniform & linens. Upon analysis, Expense Reduction Analysts found that the company was doing an excellent job of managing costs in both telecommunications and fleet management, but that there would be an opportunity to rationalise suppliers and achieve savings on personal protective equipment for employees.

The solution

Using the Expense Reduction Analysts’ cost reduction process, our consultants helped the client examine their options. Through discussion with our PPE specialist, they quickly expanded the scope of the intended review from a pure cost management perspective to a managed supply review for the mine sites in Western Australia as well. The client was able to move from a multiple supplier model to a complete service model and focus on product warehousing and delivery, as well as usage per person.

 

The result

The client achieved significant savings of over 25% for personal protective equipment. Both the CFO and Site Manager were thrilled with the outcome, which saw one new supplier and one of the incumbent suppliers reappointed to the program, as a great success. Expense Reduction Analysts continued to monitor the new arrangements for the client to ensure good outcomes for the 24 months following the completion of the project.

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