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Aurecon 360 Issue 8 - Thinking in action

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Page 35 of 43

Lift profit through supply chain value by Colin Eustace, Aurecon's Technical Leader for operational optimisation and simulation Under-performing bulk supply chains are a familiar theme within the resources sector. Made up of many components and complex interfaces, there is often reluctance among diverse stakeholders to cooperate to a level necessary to find the best overall outcome. As a result, supply chains can present a multifaceted problem of different objectives for different users. The combination of competitive forces, a desire for autonomy and legacy systems which have grown out of a short-term and ad hoc approach to expansion, results in the development of complicated operations and redundant infrastructure. Improvement in operational efficiency is a current mandate for resources companies around the globe. Routinely, the first step for improvement in most legacy supply chain infrastructure is simply to improve communication and coordination of planning. However important these initiatives, they are an endgame of incremental improvements for owners and operators. The bigger gains are to be made much earlier in the process, in properly optimising the supply chain configuration for new developments or major expansions early within the project lifecycle. Holistic approach to resources supply chains Inefficient or underperforming supply chain solutions locked between concept and feasibility stages can lead to a number of undesirable outcomes such as: • The life of project costs of the supply chain infrastructure and assets significantly increase

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