Oil, gas and mining
Securing a well-maintained fleet in the initial phase of a project with an imminent need for 30 vehicles with special conversions
Mining Company is to open four mine sites from 2010 to 2014 in four different African
countries, the first of which is Ivory Coast. Early earth-work begins Q4 2010,
employing 580 people in the first phase. National requirements demand that 85% of staff is local.
There is an imminent need for 30 vehicles with special conversions. The transport solution must be scalable, take local capacity into account as well as be cost effective during all phases.
At this stage, this requirements are too small to set up cost-effective dedicated workshop's. By analyzing the client's transport requirements, we designed a phased-in approach in two steps.
In step, one we identified two main priorities:
- a quick conversion and delivery of imminent vehicle needs
- establishment of on-site consignment stock
The consignment stock was integrated with the client's existing SAP for stock management and automatic reordering. We recommended carrying spare parts stock for 3-6 months consumption and set up system/stock. We also provided mechanics training for local staff to assist the client fullfilling local content staff requirements with skilled staff. In addition, a Bukkehave consultant designed a setup for Mining Company's facilities to meet early needs before the full workshop was established.
In step two, we looked at the project in a longer perspective and developed the following:
- a leasing solution including service and maintenance, with an on-site Bukkehave service facility
- complete cost and performance predictability for the vehicle fleet five years into the future
The client was offered a fixed price either as a cost per kilometer, monthly fee or combination of purchase, lease and maintenance fee.
What to learn from this experience:
When the required quantity of vehicles is relatively low in the initial phase of a project, the most cost-effective way of securing an efficient fleet is to establish on-site consignment stock and training of local staff. At this stage it is also helpful to continue analysis of the project to meet its requirements in future phases.
Business area(s): Vehicles, service and maintenance
Client's situation: Mining company has an imminent need for 30 vehicles with special conversions and help to keep the fleet running for the initial phase of its project.
Where: Ivory Coast
1. Delivery of converted vehicles
2. Establishment of consignment stock
3. A leasing proposal
4. Five year cost and performance