Strategic Parts Supply for a Major Philippine Mine
Introduction
A Philippines-based mining company operating a large-scale, owner-managed mining operation required a more flexible and cost-effective approach to spare-parts supply.
The Challenge
As a remote mining operation, spare-parts procurement presents a combination of operational and commercial challenges. Critical components need to be available when required, while long international lead times, variable OEM pricing and the cost of expedited freight can significantly increase the total cost of maintaining a mining fleet.
The client needed a supply model capable of supporting both planned inventory replenishment and unexpected emergency requirements.
Our Strategy
Dints worked with the client’s maintenance, procurement and logistics teams to develop a comprehensive parts supply agreement designed around the operational requirements of the mine.
The model combined planned stock replenishment with access to Dints’ multi-brand global supply network, enabling parts to be sourced internationally according to price and availability. Regular requirements would be consolidated into sea freight shipments, while urgent requirements would be supported through alternative and expanded sourcing with expedited air and courier freight.
This created a flexible procurement model capable of supporting both routine maintenance demand and unplanned operational requirements.
Project Outcomes & Project Impact
Through Dints’ multi-brand global supply chain, the client gained access to parts from international markets through a single supplier relationship. Replenishment decisions could therefore be made based on the best combination of price, availability and lead time, rather than relying on a single traditional OEM sourcing route.
Stock replenishment was managed through consolidated sea freight shipments, with emergency requirements supported by international courier and air freight delivery as appropriate.
Alongside genuine replacement parts, Dints worked with the client to identify quality aftermarket parts and rebuilt engines and components, specifically with the objective of reducing total cost without compromising quality.
Commercial transparency was built into the model. Rather than operating through opaque resale pricing, the contract established a defined cost-plus structure and required both parties to collaborate on actively reducing the total cost of parts supply.
