How a mining company addressed supply chain disruptions in 2023?

A pioneer in the mining industry, experienced disruptions due to inadequate inventory management systems. This led the organization to join hands with Research Nester to determine supply chain trends and react to irregularities in the procurement procedure.


An overview:


A leading mining company from China, primarily involved in the extraction, smelting, and processing of copper, experienced major supply chain disruptions that hindered the company’s activity and trade on a global scale


The organization aimed to create a backup strategy for supply chain emergencies, and design more durable supply chains. The supply chain issues increased the cost of mining projects from 25% in 2021 to 30% in 2022. Our client aimed to reduce this cost to below 25% in the coming years


Our team at Research Nester offered its supply and demand analytical research solution by developing risk management strategies to reduce potential disruptions in the supply chain and improve the transparency of the supply chain


The Story

Due to poor inventory management systems, unstable suppliers, and the remote locations of the mines, the mining industry is particularly vulnerable to disruptions that could cause a shortage of raw materials. Research Nester’s analysts observed that during the year 2021, copper was facing supply issues owing to floods in China, and labor disputes in Chile. As a consequence, over 80% of the companies around the globe including nearly 40% of small and mid-sized businesses incurred significant financial expenses around 7% of yearly revenues, and reported high operational costs. Similarly, the leading mining company was also affected by the supply chain disruptions which were negatively impacting its operations, and could also harm the brand reputation in the coming future. Therefore, the company requested Research Nester to help them ensure a smooth supply chain, and maintain a steady flow of inventory even in emergencies.

Our Solution:

Research Nester used its Logistics & Freight Model to understand all the necessary logistics dynamics, to overcome the limitations of the supply chain. This helped our team of experts to understand that the company did not have any alternative supply channel which could help in emergencies and a durable supply chain was lacking. Besides this, there was hardly any implementation of technology and digital tools to improve the supply chain issues. The mining company was offered valuable assistance to reduce the impact of supply chain disruptions and introduce alternative options for supply chain analytics. These solutions enabled our client to optimize its logistics and develop risk management strategies to detect the risks involved in the supply chain which would help in addressing the disruptions. As a result, our client was able to successfully leverage digital tools in its supply chain management which also improved demand forecasting and inventory planning. Going forward the organization built strong relationships with the suppliers to ensure a smooth supply chain. Furthermore, our client was asked to focus more on a number of key areas, including:

  • To implement advanced tracking systems for the timely supply of materials.
  • To maintain good relationships with the stakeholders by collaborating across the supply chain.
  • To conduct supplier audits and timely evaluate their supplier capabilities.
  • To develop alternate supply sources and create a contingency plan to address disruptions.
  • To save over 5% on transportation expenses our client was asked to focus on realigning their internal inventory management.


Research Nester analyzed the supply chain process and assess the market demand and supply of the raw materials required by a mining company. This helped the company in lowering its cost of mining projects to up to around 25% in CY2023 from 30% in CY2022 which is a decrease of 5%. Digital-based solutions were provided to help businesses excel at supply-chain management, and to comprehend causes and consequences inside supply chains—including demand forecasting models, integrated business planning, and dynamic planning optimization with the help of which the company introduced digital supply chain management to make important decisions, which helped in improving logistics by 16%, and inventory levels by over 25%.

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Swara Keni

Head- Global Business Development

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