Developing New Supply Channels

A client approached Valenhold looking for new supply channels for consumable mining products. With price-sensitive products, we looked at all input costs across the supply chain to develop a new delivery method that moved low-value add work to lower-cost locations.

We worked closely with our client to review current specifications and operation requirements to optimise material and design inputs by using ‘functionally like’ products. This reduced material costs and allowed us to standardise across a range of product variations, forward purchase more substantial volumes of material and optimise logistics. Valenhold then looked to move the products up the value chain by changing from individual components to ‘finished assembly supply. This involved developing assembly, testing and transport procedures to optimise all costs.

Our client was able to redeploy skilled labour away from low-value add tasks, increase supply chain stability and reduce overall unit and handling costs across a range of products.