Safe and Economic Mineral Production

Transcription

1 Industry Executive Overview SAP for Mining Executive Safe and Economic Mineral Production

2 Safe and Economic Mineral Production Market Situation The Innovation-Driven Business Business Priorities Transformation Through Technology Innovation SAP Innovations Mining companies need to address the key challenges of commodity price volatility, operational efficiency, and environment and safety. This requires a robust foundation of integrated IT and operations technology. The mining industry is under constant turmoil of price and demand volatility. This has resulted in companies being more cautious in their capital-project decisions, and inclined to engage in cost-reduction initiatives. One way to achieve cost reduction is by enhancing efficiencies in production, maintenance, and inventory management for maintenance, repair, and overhaul operations. Leading mining companies have embarked on digital mining initiatives to attain an integrated application landscape for a seamless information flow. Due to lower production costs and relatively easier reserves, there is an increased focus on growth areas such as West Africa, Mongolia, and Vietnam. Growth in these areas, as well as increasing merger and acquisitions activity, necessitates scalability and robustness of information systems. The outsourcing of various kinds of mining operations and maintenance services has been growing rapidly. Hiring, work-quality monitoring, access control, and payments to subcontractors are important challenges that need to be handled holistically. 2 / 37

3 Integrated Digital Mining Enterprise Market Situation The Innovation-Driven Business Business Priorities Transformation Through Technology Innovation SAP Innovations Integrated applications enable efficient operations. Align Production (Mining and Downstream Processing) and Maintenance Improve overall equipment effectiveness and inventory management. Manage Operational Risk Ensure safe, environmentally friendly, and compliant operations. Manage Financial Risk Mitigate fluctuations in commodity prices and foreign exchange markets. Reliable and efficient operations require seamless integration of IT and operations technology with the organization s infrastructure backbone. This is particularly important for remote locations. 3 / 37

4 Best-Run Mining Priorities Market Situation The Innovation-Driven Business Best-in-class mining companies support their global organizations with singleinstance implementations of SAP software, while providing the maximum possible functional coverage through SAP solutions. Business Priorities Transformation Through Technology Innovation SAP Innovations Optimized Mine Operations Efficient Sales and Supply Chain Operational Risk and Compliance management People and Talent Finance Procurement IT Technology solutions Understanding the value drivers for each of these priorities is key to executing as a best-run mining company. 4 / 37

5 Business Transformation Through Technology Innovation Market Situation The Innovation-Driven Business Business Priorities Transformation Through Technology Innovation SAP Innovations Revenue growth and profit are no longer sufficient benchmarks for success. In today s economy, companies need to stand out in crowded and highly competitive markets. The pace of business is relentless, where today s innovation becomes tomorrow s status quo. Organizations that embrace technology can rapidly transform themselves and gain a significant advantage over the competition. For over 40 years, SAP s innovations have helped companies transform and achieve the goals they never thought possible making better-informed decisions and innovating to lead in new markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the business. Enable the Real-Time Enterprise SAP s integrated, real-time analytical, predictive, and in-memory database solutions improve the business value of your information and optimize business outcomes. Empower New Experiences The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly across any device, with the superior consumer-grade experience users have come to expect. Unwire the Business Connect with your customers, partners, and employees efficiently and securely with a marketleading mobile platform and device management technologies from SAP. 5 / 37

6 SAP Innovations Market Situation The Innovation-Driven Business Business Priorities Transformation Through Technology Innovation SAP Innovations Mining companies need to adapt to emerging IT trends and still provide service levels without any disruption to the business. They are also being challenged to leverage IT advancements to innovate processes and optimize their business. SAP invests significantly in five distinct technology areas applications, analytics, mobile, cloud, and Big Data. Maximize the return on assets by using breakthrough database and technology solutions, such as the SAP HANA platform and SAP solutions for analytics. Mining companies can reduce operational costs while increasing asset availability and improving safety. Mobile SAP mobile apps enable all aspects of company operations to run faster and smoother by providing employees with access to critical information anytime, anywhere. It also allows them to capture data eliminating paper-based processes and bring data faster into the back-end software, where all stakeholders will have instant access to it. Cloud The cloud solutions from SAP and its partners provide a new way to deliver extraordinary potential for mining companies to run their businesses better and faster. Ariba Network provides access to a vast network of qualified, global suppliers, even in remote areas. It offers low-cost and low-risk deployment while ensuring flexibility, scalability, and full integration across business processes end to end. 6 / 37

7 Mining Value Map Integrated digital mining enterprise. Optimized Mine Operations Sales and Supply Optimized Mine Operations Efficient Sales and Supply Chain Operational Risk and Compliance Asset Portfolio and Project Commodity Sales and Price Risk Mitigation Operational Risk Risk and Compliance People and Talent Mine Operations and Performance Efficient Asset Maintenance Bulk and Non-Bulk Transportation Energy and Environmental Resource Product Safety and Stewardship Finance Asset Visibility and Performance Procurement IT People and Talent Finance Core Human Resources and Payroll Financial Performance Talent Accounting and Financial Close Time and Attendance Treasury and Financial Risk Workforce Planning and Analytics Collaborative Finance Operations Enterprise Risk and Compliance Technology Solutions Procurement Supplier Discovery and Lifecycle Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity IT Application Lifecycle IT Infrastructure IT Portfolio and Project IT Service IT Strategy and Governance Technology Solutions Analytics Data Application Development and Integration SAP HANA Platform Enterprise Mobility Consumer Experience 7 / 37

8 Optimized Mine Operations Optimized Mine Operations Priorities Constant volatility in commodity prices and profit margins compels mining companies to control capital and operational expenditure. This can be achieved through efficient production, processing, maintenance, and project management. 62% Lower unplanned outages where sophisticated reliabilitybased maintenance procedures and tools increase asset availability Source: SAP Performance Operational efficiency is of paramount importance and can be achieved through effective collaboration between production and maintenance. This requires a seamlessly integrated application landscape comprising SAP software and various third-party applications. This integrated digital mining landscape is enabled through the SAP Manufacturing Integration and Intelligence (SAP MII) application. Decision makers at various levels require visibility into operations and maintenance data. This data should be provided in real time or aggregated form, based on the requirement. In the long run, efficient capital project management and engineering, procurement, and construction contractor management lay the foundation for successful maintenance operations. 8 / 37

9 Optimized Mine Operations Optimized Mine Operations Priorities Optimize mining and downstream processing operations through integration and business intelligence. Increase production, overall equipment effectiveness and environment, health, and safety compliance. Asset Portfolio and Project Mine Operations and Performance Efficiently manage capital and operational expenditure projects, limiting time and cost overruns. Plan, execute, and control production operations in mines, crushers, and downstream processing plants. 16% Lower inventory carrying cost where timely transportation planning is performed with considerations of supply chain constraints Source: SAP Performance Efficient Asset Maintenance Asset Visibility and Performance Benefits Higher mineral production throughput Higher mineral production throughput per worker Higher overall equipment effectiveness Enable more effective collaboration between production, maintenance, and repair operations, as well as spare parts and inventory management. Provide visibility into equipment performance, condition, and status, enabling prompt corrective actions. Lower operational costs Reduced costs for maintenance operations and lower spare parts inventory carrying costs Low variance in planned and actual project costs 9 / 37

10 Efficient Sales and SCM Sales and Supply Priorities Customer satisfaction and profitability depend on the efficiency of contract-to-cash and transportation processes. Mining companies expect software to play an important role in the management of customer-facing and supply processes. 16% Lower inventory carrying cost when timely transportation planning is performed with considerations of supply chain constraints Source: SAP Performance Sales contracts of mining companies require the support of software that can handle pricing complexity. This ranges from multistage invoicing to formula and average pricing that varies according to product assay. Scheduling of the bulk transportation of minerals requires decisions on selecting appropriate grades of products from various stockpiles stacked in different locations. Employees blend the minerals and decide on methods of transportation for each delivery. Effective inbound supply chain management of spare parts for maintenance, repair, and operations is critical, as this represents a high proportion of total inventory costs. And, with numerous mining-based operational and maintenance activities outsourced, subcontractor maintenance is becoming increasingly important. 10 / 37

11 Efficient Sales and SCM Sales and Supply Priorities Improve profitability through effective sales contract handling and supply chain management. Effective sales contract handling delivers faster and more accurate pricing and invoice generation. Efficient capacity utilization and stockpile management reduce transportation costs and lower working capital locked in inventory. Subcontractor performance tracking increases the accuracy of payments. Commodity Sales and Price Risk Manage contract-to-cash processes, including commodity and foreign exchange risk hedging. 69% Lower recordable accident frequency where maintenance planning takes into account skill, material, tools, and specific job instructions Source: SAP Performance Bulk and Non-Bulk Transportation Benefits Higher profits per customer or per contract Better mitigation of commodity price risk Higher awareness of foreign exchange volatility Optimize transportation planning and execution for multiple locations, sales orders, and means of transportation. Higher transportation throughput Lower inventory costs Increased control of subcontractors activities 11 / 37

12 Operational Risk / Compliance Risk and Compliance Priorities Worker safety and environmental compliance are top of the agenda for mining companies requiring strict controls on hazardous substances. Reducing carbon footprint and energy costs is also a key priority. 69% Lower recordable accident frequency when maintenance planning takes into account skill, material, tools, and specific job instructions Source: SAP Performance Noncompliance with safety and environmental regulations exposes mining companies to safety risks and financial penalties. For this reason, mining companies worldwide are working to improve their operational risk management capabilities. of effluents and greenhouse gas (GHG) is high on the priority list of mining companies. As energy costs climb steadily and profitability is under pressure, mining companies strive to reduce energy consumption. Integration of plant automation systems with the SAP ERP and SAP Manufacturing Integration and Intelligence (SAP MII) applications increases visibility of energy use to enable ongoing monitoring. Responsible management of hazardous materials, such as explosives and reagents, is critical for mining companies. Proper labeling and training regarding safe handling of these substances is indispensable. 12 / 37

13 Operational Risk / Compliance Risk and Compliance Priorities Create safe and economic operations across the mining value chain. Improve safety in every operation while reducing energy consumption in mining and downstream processing. Operational Risk Energy and Environmental Resource Assess and manage operational risks involving people, assets, and locations. Monitor energy consumption and take corrective actions to reduce the carbon footprint. 71% Lower recordable accident frequency where safety and environmental data are fully integrated with asset management functions Source: SAP Performance Product Safety and Stewardship Benefits Reduction in days lost due to incidents Fewer penalties for accidents and incidents Better employee health management and motivation Reduce the number of accidents associated with mishandling hazardous substances such as explosives and reagents through better labeling, handling instructions, and training programs. Compliance with greenhouse gas (GHG) emission targets Revenue opportunities through carbon credit trading 13 / 37

14 People and Talent People and Talent Priorities Talent is a true competitive advantage today and critical when aligning business strategy and execution. Best-run organizations achieve profitable growth by leveraging their talent and out-innovating the competition. 32% Lower employee turnover by using analysis of workforce data to design, implement, and monitor workforce optimization strategies Source: SAP Performance For organizational growth and an agile response to business change, organizations must give people the knowledge and technology to facilitate innovation. They must move into new markets, adapting to local practices and tapping the right local talent. In addition, they must identify and retain new talent acquired through mergers and acquisitions. Organizations that respond to challenges quickly with the right talent in the right places will have a unique advantage in the marketplace that can help them outperform the competition. SAP solutions help you: Attract and empower innovative talent Integrate and leverage acquired talent Find, deploy, and retain talent globally 14 / 37

15 People and Talent People and Talent Priorities The new world of work. Enable growth and sustainability by providing choice in HR services. Couple global reach, integration, and real-time insight with mobile-device support. Core Human Resources and Payroll Talent Consolidate HR and payroll processes on common global platform for better workforce data and legal compliance. Improve strategic alignment, increase productivity, and accelerate results by identifying, developing, motivating, and retaining talent. 38% Lower costs for HR organizations with a high degree of internal integration compared to organizations with a fragmented HR environment Source: SAP Performance Time and Attendance Workforce Planning and Analytics Benefits Align people to organizational strategies Support global expansion into new markets Streamline time management processes to enhance resource effectiveness and visibility into and control over labor costs. Identify and analyze talent gaps and streamline workforce planning for efficient and effective management of workforce demand and supply. Improve productivity and engagement Provide real-time insight into business needs 15 / 37

16 Achieve Financial Excellence Finance Priorities CFOs implement best practices to help them walk a fine line, striking a balance between sound stewardship and value creation, entrepreneurship and caution, and the big picture and exacting detail. 44% Lower compliance and risk management costs when financial software supports internal and external accounting requirements Source: SAP Performance Financial organizations are struggling to achieve excellence in one of the most difficult and volatile economies of modern times. Persistent challenges include ongoing market instability, ever-changing regulations, and increasing pressure on margins. As the speed of finance increases, so does the need for financial insight on the go anyplace and anytime. At the office financial executives must cut costs while demonstrating the value of the company. More than ever, financial organizations need best practices to help them achieve excellence. With the right solutions for finance, organizations can excel in areas of greatest need, helping ensure regulatory compliance and effective risk management, outperforming financial objectives, creating sustainable value, and delivering superior service. 16 / 37

17 Achieve Financial Excellence Finance Priorities Even in the face of sustained market volatility and increasing regulatory demands, best practices help financial organizations excel. Organizations that use 360-degree financial processes enable their people to collaborate more efficiently and use business insight more effectively. Financial Performance Accounting and Financial Close of financial performance to execute organizational strategies and control costs. A fast, accurate, compliant close with less cost and effort. 26% Fewer days to close annual books where accounts payable software is integrated with general ledger software Source: SAP Performance Treasury and Financial Risk Collaborative Finance Operations Enterprise Risk and Compliance Benefits Help ensure regulatory compliance Optimize risk management Outperform financial objectives Greater insight and control over complex processes for managing cash, liquidity, and risk. Automated transactional processes for increased efficiency, effectiveness, collaboration, and service at lower cost. Risk and compliance management to protect revenue and optimize financial performance. Create sustainable value Deliver superior service at reduced cost 17 / 37

18 Procurement Procurement Priorities Companies often focus on revenue, but procurement savings can increase profits about five times more. The key to maximizing success in this critical role is to deliver consistent quality, savings, and support for compliance over time. 39% Higher average annual savings where software provides real-time visibility into supplier performance for proactive improvements Source: SAP Performance Procurement leaders set a baseline for success by implementing best practices, excelling in category expertise, and working with key stakeholders on cost control programs. While savings is always a priority, new objectives have emerged as well. Procurement must manage supplier risk and performance, improve process efficiency, drive innovation, and ensure sustainability practices. You need solutions that give you the tools to cut costs as well as add value, supporting processes that include spend analysis, sourcing, contract management, operational procurement, supplier information management, and risk and performance management available both on-premise and in the cloud. These tools, when coupled with an unparalleled collaborative business network, drive real-time insight and efficiency that can only be delivered through the power of many. 18 / 37

19 Procurement Procurement Priorities Drive sustainable savings while supporting innovation. Ensure best practices in the source-to-pay process, on-premise, or in the cloud, while leveraging the power of network collaboration for efficiency and insights. Supplier Discovery and Lifecycle Find new suppliers through Ariba Network, and manage these relationships through supplier management solutions. Strategic Sourcing and Contracting Procurement and Order Collaboration Identify and act on sourcing opportunities, and create favorable, low-risk supply contracts. Realize savings with compliant, user-friendly self-service procurement. Collaborate on Ariba Network to make transactions more efficient. 55% Lower FTE per billion in spending for companies conducting electronic supplier collaboration on a network Source: SAP Performance Collaborative Invoice to Pay Commodity Benefits Optimize spend under management Increase average annual savings Decrease FTE per billion in spend Drive invoice automation and exception management with available dynamic discounting on Ariba Network. Optimize procurement, sales, and risk management for a consolidated, realtime view of commodity risk to react quickly to market changes. Drive innovation with suppliers Reduce cost and risk with faster turnaround 19 / 37

20 IT IT Priorities Businesses enterprises should forge a strategic business partnership with their IT organizations by aligning goals. Business-oriented IT management is all about maximizing efficiency and responsiveness by running IT like a business. 36% Higher operating margin where organizations use IT to enable strategic and competitive advantages Source: SAP Performance Lines of business want to ascertain the value of their IT investment, which means IT organizations no longer decide alone which IT projects to fund. The challenge is that IT management is often seen as just running the technical landscape. To become more relevant to an enterprise, IT needs to reposition itself to run like a business. SAP offers an integrated portfolio of solutions to do just that. New technologies like mobile, in-memory, and cloud computing generate value for a business in an unprecedented way. 20 / 37

21 IT IT Priorities Evaluate and control risk, ensure flexibility and scale, control and optimize costs, and maximize strategic value. Ensure business continuity, drive efficiency, and increase IT responsiveness to business objectives with IT management solutions designed for businesses of any size. Application Lifecycle IT Infrastructure Use application lifecycle management best practices, methods, and services based on IT infrastructure library (ITIL). Monitor all network assets to drive an integrated infrastructure. 36% More IT projects generate positive ROI when IT is included in prioritization process early on for appropriate road map development Source: SAP Performance IT Portfolio and Project IT Service IT Strategy and Governance Benefits Better alignment of IT to business strategy Shorter IT delivery and business cycles Lower ratio of IT budget to profit and IT upkeep Drive innovation and cross-functional processes across software landscapes. Align the portfolio to drive innovation efficiently. Align service-desk operations with service-level agreements, resolve incidents faster, track IT costs, identify the risks and map them vis-a-vis business impact. Reduced system upgrade and operation costs Lower cost of risk mitigation and revenue loss Lower downtime of critical business software 21 / 37

22 Technology Solutions Technology Solutions Priorities Businesses must drive transformation through technology innovation. Organizations that thrive will empower new developer and user experiences and unwire their businesses to innovate engagement with customers, partners, and employees. 4 Cloud, social networking, mobility, and the strategic use of information are the four forces that combine to create a new era of computing and new opportunities for business. Source: Gartner, SAP Is Driving Analytics, Cloud and Mobility in the nexus of Forces, Donald Feinberg, August 24, 2012 As users become savvier, their needs escalate. They expect real-time insights, predictive analysis, and real-time access to applications from the latest mobile devices. They expect all of these features to tightly integrate with their favorite social platforms. At the same time, data volumes are exploding, while the window to capitalize on opportunities is shrinking. Users must be empowered with information available in an entirely new class of real-time applications. Developers must have a platform they can use to innovate faster than ever before. Technology solutions can be the difference between losing and thriving. Organizations that thrive will enable the real-time enterprise to improve the value of information, empower new developer and user experiences, and unwire their businesses to innovate engagement with customers, partners, and employees. 22 / 37

23 Technology Solutions Technology Solutions Priorities Technologies to drive change and help your business thrive. SAP enables the real-time enterprise, empowers new experiences, and unwires the business. Analytics Increase the value of data with real-time analytics, business intelligence, and risk management. Data Manage your critical data with confidence and top performance. 20% Through 2015, organizations integrating high-value, diverse, new information types and sources into a coherent information management infrastructure will outperform their industry peers financially by more than 20%. Source: Gartner, Hype Cycle for Information Infrastructure, 2012 Michael Blechar, July 31, 2012 Application Development and Integration Enterprise Mobility Consumer Experience SAP HANA Platform Benefits Fast decisions based on single version of truth More efficient alignment of master data Develop applications and innovation rapidly in a mobile, always-on world of collaborative business networks for secure, cloud-scale applications. Unwire your employees, customers, and partners with proven mobile solutions. Use real-time, consumer-grade software to increase productivity and competitiveness. Streamline applications, analytics, and planning on a single in-memory-based platform. Options for faster development of mobile apps Lower TCO of information software systems 23 / 37

24 SAP Innovations SAP Innovations Applications SAP HANA Mobile Analytics Cloud 85% Believe the cloud will have a major impact on their organization through efficiencies, innovation, or competitive differentiation Source: SAP Performance Leveraging new cloud-based deployment options and employing new technologies such as in-memory computing and mobile apps to accelerate data processing, analysis, and provisioning can transform business models and help mining companies position themselves for sustainable growth. Mobile Mobile apps from SAP and its partners enable all aspects of company operations to run faster and smoother by providing information access anytime, anywhere. Data can be captured on a real-time basis, eliminating paper-based processes and utilized for transaction processing or analysis. Cloud Cloud solutions from SAP and its partners hold extraordinary potential for mining companies to find new ways to leverage these available solutions faster and more economically. Analytics Mining companies need to know how their current operations are performing and set realistic performance targets. Comprehensive analytic solutions from SAP deliver enhanced visibility of critical information, enabling mining companies to become best-run businesses. Big Data The SAP HANA platform enables new advanced business processes for finance, operations, maintenance and other functions. It also empowers geographic information systems and supports complex reporting tools. 24 / 37

25 SAP Business Suite Powered by SAP HANA SAP Innovations Applications Make mining operations and maintenance processes safer and more efficient through faster data analysis and decision making. SAP HANA Mobile Analytics Cloud Optimized Mine Operations Schedule all existing maintenance plans within a specific time frame and streamline associated procurement processes. Obtain real-time analytics on the data from sensors, programmable logic controllers, and process automation systems. With faster response times, you can: Maintain scheduling up to 20 times faster than with existing technologies Utilize the data from process automation systems more effectively and timely Efficient Sales and Supply Chain New analytical cockpit provides real-time access to complex inventory management data so as to: Search purchase orders up to 10 times faster compared to using existing technologies Analyze customer sales and contracts-related data faster Operational Risk and Compliance Benefit from real-time access and handling of complex payment data embedded in working capital dashboards. Gain faster analysis of incident- and accident- related historical data to enable quick decisions and actions. With real-time analysis of access control role usage, you can: React quickly to financial exposures Search purchase order history up to 10 times faster than with existing technologies Clear payments up to 71 times faster than with existing technologies 25 / 37

26 SAP HANA SAP Innovations Applications SAP HANA Mobile Analytics Cloud 48% Of organizations foresee a need for having predictive modeling and complex optimization techniques on Big Data analysis Source: SAP Performance Big machinery generates Big Data and mines have tons of big machinery. Visibility into daily operations is problematic without the means to manipulate business and manufacturing data. There is a huge opportunity to transform mines even in remote locations into efficient, streamlined operations. Return on Assets and Productivity Manage the intersection of mine planning, asset lifecycle management, and operational performance for each asset. Initiate and manage capital and operational projects. Align and measure against business objectives. Optimize Constrained Supply Chain Assets Provide instant insight into and simulation of supply chain availability and capacity, based on planned and actual mine and mill production. Improve Asset Availability Increase the granularity of production and operational data, enabling advanced condition monitoring and predictive maintenance. This results in optimized maintenance spend. 26 / 37

27 Mobile SAP Innovations Applications SAP HANA Mining assets are distributed and mine faces move; employees are constantly on the move. Mobile technology opens up many opportunities to bring more efficiency, simplicity, and speed to daily operations. Mobile Analytics Cloud 21% Higher employee productivity in organizations with a higher percentage of mobile service and support employees Source: SAP Performance Provide transparency on key performance indicators to authorized stakeholders on the move in real time or on an aggregated basis. Enable management-by-exception reporting with alerts to inform the right people about issues, regardless of their current location. Reduce paperwork and enable direct data entry for tasks such as maintenance requests. Confirmations sent by mobile devices reduce errors and ensure that data is up to date. Reduce time-consuming inquiries about topics such as technical documentation or inventory availability for spare parts. As a result, productive maintenance time increases. Enable remote real-time recording of critical information about production or data relating to environment, health, and safety. Take quick corrective actions based on alerts and notifications received on mobile devices. Gain remote access to supply chain planning and scheduling systems to verify, approve, or change shipments. Optimize inventory and order fulfillment by providing remote visibility into stockpiles and in-transit inventory. 27 / 37

28 Analytics SAP Innovations Applications SAP HANA Healthy mines achieve high operational performance and can drive sustainable and profitable growth. Without tracking performance, taking action to improve is impossible. Analytics create operational transparency and enable you to turn insight into action. Mobile Analytics Cloud 53% More employees leverage analytic information when business intelligence software provides access to easy-to-use advanced analytic tools Confidently seize opportunities while mitigating risk. Monitor operations, align operational plans and simulations, and support risk control and awareness through: Asset performance management Predictive maintenance Production loss analysis Sustainability performance management Energy and environmental performance management Operational risk management Source: SAP Performance 28 / 37

29 Cloud SAP Innovations Applications SAP HANA Mobile Analytics Cloud 66% Expect greater flexibility and agility to be a source of business advantage from cloud computing Source: SAP Performance Cloud solutions from SAP and its partners include: Ariba Network Access a vast network of global suppliers. BizX Suite from SuccessFactors Hire, develop, and reward employees worldwide. SAP Product Safety OnDemand solution Manage hazardous materials and ensure regulatory compliance. SAP Cloud applications and the open SAP HANA Cloud platform allow companies to build differentiating solutions rapidly establishing nimble global business networks. Optimized Mine Operations Reduce costs and gain organizational flexibility while facilitating regulatory compliance and process safety. With BizX Suite from SuccessFactors, an SAP company, you can set up your local mining operations rapidly to hire, develop, and reward employees. Efficient Sales and Supply Chain Ariba Network providing a vast network of qualified, global suppliers worldwide SAP Strategic Sourcing OnDemand and SAP Supplier OnDemand solutions SAP Contract Lifecycle OnDemand application Supplier self-servicing and effective supplier performance measurement from SAP Operational Risk and Compliance SAP Product Safety OnDemand helps you manage hazardous materials and comply with Globally Harmonized System for the Classification and Labeling of Chemicals (GHS) rules. 29 / 37

30 Best-Run Customers Best-Run Customers Cameco Corporation Konkola Copper Mines plc PT Timah Seven of the Top 10 mining companies run SAP. Nine of the Top 10 copper producers run SAP. Eight of the Top 10 zinc producers run SAP. Seven of the Top 10 aluminum producers run SAP. Six of the Top 10 nickel producers run SAP. Why SAP? 30 / 37

31 Customer Co-Innovation Best-Run Customers Cameco Corporation SAP co-innovates with leading mining companies worldwide. Forums like Industry Advisory Council for Mining, its workgroups, and special interest groups detect trends and lead co-innovation to drive continual software enhancements. Konkola Copper Mines plc PT Timah Why SAP? CIOs of Top Mining Companies Mining CIOS discuss business innovation and technological requirements of mining companies and share best practices on how to manage an increasingly volatile environment. Co-Innovation Partners The co-innovation process is enriched by including system integration specialists and independent software vendors as co-innovation partners. 31 / 37

32 Best-Run Customers Cameco Corporation Konkola Copper Mines plc PT Timah Why SAP? Cameco Takes Steps Toward Adopting Value Discipline with Help from SAP. Objectives Increase production targets and expand globally Mature and improve business processes Reduce major project indirect spending Approach Engaged in benchmarking program with SAP Used tool from the SAP Value Center site to identify challenges and solutions Focused first on high-value rapid-deployment opportunities, and then on realizing greater value from the SAP software investment through process efficiency and best practices to support operations Achievements Better insight and control over processes and costs Clear, developed business case Plan to increase workforce availability for value-added activities by reducing tactical activities Plan to maintain staffing levels through process efficiencies, while supporting growth 7 studies completed 100+ Employees involved in the project $2 Million mine site inventory benefits enabled by SAP software 32 / 37

33 Best-Run Customers Cameco Corporation Konkola Copper Mines plc PT Timah Why SAP? Konkola Copper Mines Creates a Platform for Future Growth with SAP ERP. The Company s Top Objectives Integrate and optimize business systems to achieve operational efficiency and gain full visibility across the organization Map efficiency throughout the manufacturing process in real time Speed up financial closure and reporting and improve audit ratings The Resolution Replaced legacy business systems with the SAP ERP application and integrated end-to-end business processes Adhered to standard SAP templates for process redesign Implemented the SAP for Mining solution portfolio and adopted best-practice methodology Key Benefits Single and consistent view of the business from one data source Accurate and real-time metal accounting Improved data quality, allowing faster, more accurate decision making >$20 Million reduction in stores inventory >75% Less time from purchase order to requisition >75% Overall equipment effectiveness of assets 33 / 37

34 Best-Run Customers Cameco Corporation Konkola Copper Mines plc PT Timah Why SAP? PT Timah Pursues Operational Excellence with SAP ERP. The Company s Top Objectives Automate manual processes Enable real-time visibility into inventory stock Reduce invoice errors Improve transparency of third-party payment The Resolution Implementation of the SAP ERP application to streamline reporting and enable real-time visibility into inventory stock Strong support from Timah management and involvement of business owners to optimize business processes through quick implementation Key Benefits Real-time visibility into inventory stock Invoice error rate reduced Sales document errors reduced Employee productivity improved Procurement lead time reduced Forecast accuracy improved Confirmation for third-party payments reduced 40% Reduced time to close monthly books 60% Reduced cycle time for forecasts 90% Less time to create reports 34 / 37

35 Why SAP? Best-Run Customers Cameco Corporation SAP solutions help mining companies improve their efficiencies and control costs. This is possible through employing integrated SAP software aimed at enabling the digital mining enterprise vision. Konkola Copper Mines plc PT Timah Why SAP? Leaders in the mining industry, who represent a base of over 360 mining customers, have adopted SAP solutions. The software offers a vast range of solutions, including the SAP ERP application, the SAP for Mining solution portfolio, the SAP HANA platform, and the SAP Environment, Health, and Safety application. SAP software integrates enterprise software systems with mining and processing software systems. The SAP for Mining solution portfolio leverages industry best practices. Special focus on the mining industry is accomplished through the dedicated mining industry team and the industry advisory council for mining, which sponsors applied research specific to the mining industry. 35 / 37

36 Find Out More About How Your Organization Can Become Best-Run Benchmark Your Performance Position your organization for dominance in this new economy with the business performance benchmarking program from SAP available free to SAP customers and select prospects. SAP's benchmarking program has helped more than 3,000 organizations assess their strengths, uncover areas for improvement, and identify best practices and IT strategies that generate clear, tangible value not someday, but today. Go Live in Weeks Here s the fastest way to run your business better: Our rapid-deployment solutions. In one package, you get everything you need to be up and running quickly including preconfigured software and implementation services in just weeks. With a defined scope and predictable costs, there are no surprises. Join Your Community of Practices Visit valuemanagement.sap.com >> Visit sap.com/solutions/rds >> Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It lets members help one another solve problems, learn, and invent new ways to get things done faster. Find out how to connect with people, content and resources. Visit scn.sap.com >> 36 / 37

37 Industry Executive Overview SAP for Mining Executive CMP (12/12) Road Maps on SAP Service Marketplace ASUG Special Interest Group Mining Best Practice for Mining

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