SAP customers across SA's mining industry and software solutions company SAP Africa have joined forces to proactively address critical issues facing this industry sector.
"Due to wavering commodity prices and ever-increasing production costs we constantly have to enhance the use of enterprise management systems to retain competitiveness," says Gerhard van Niekerk, Mining Solutions Manager at SAP Africa.
The need to rise above these challenges to find ways for SAP mining customers to share ideas and services was the driving force behind the formation of the SAP Mining Focus Group. Peopled by top and middle management from SA mining houses and strategic thinkers from SAP Africa, it provides a forum for recognising and resolving business issues through fine-tuning SAP's mining enterprise solutions to deliver improved, quantifiable returns.
"In the past, the mining industry has reacted to the ongoing demand to produce more for less by focussing on site-specific cost-containment drives. However effective these may or may not have been, they were essentially 'quick fix' reactions to prevailing market conditions, rather than long-term strategic solutions," says Amplats technology manager Deryck Spann, who chairs the SAP Mining Focus Group.
"Tomorrow's success stories will be those companies that collaborate today in long-term win-win situations. SAP Africa has a significant installed software base in the local mining sector. We as mine management know our input regarding our local industry specific requirements will turn the SAP offering into an even stronger, more competitive offering, which in turn will have a positive impact on our bottom lines.
"The SAP Mining Focus Group is peopled by individuals determined to ensure the continued viability of the mining industry in this country through working together to achieve that perfect business requirement/IT solution fit," says Spann.
The Group, whose members include De Beers, Amplats, Sasol, Iscor, Billiton, Namdeb, Samancor and Anglo American, also feeds its input into the International Advisory Council for Mining (IACM). This is an SAP-customer driven initiative that links regional mining focus groups from South Africa, Europe and the Middle East, the Americas and the Asia/Pacific region.
The Council's mandate involves exploring, evaluating and advising on the enhancement of the SAP enterprise management system to improve business practices and ensure effective systems utilisation.
"The IACM's primary functions are to screen, prioritise and support the regional focus groups, whose role it is to establish and communicate industry requirements, trends and business drivers, and to constantly review SAP's industry offerings," says van Niekerk.
"The local SAP Mining Focus Group is therefore a directive force in the delivery of enterprise solutions that deliver business benefits to mining houses worldwide. It is precisely this kind of collaborative, open-ended partnership that keeps SAP and its customers abreast of changing global and local market conditions and constraints, allowing all of us to react quickly and effectively to prevent any negative impacts," van Niekerk explains.
He adds that the close links between local and international SAP customers and developers have also resulted in the formation of an extensive knowledge base and efficient sharing of information.
"Through this knowledge base called SAP Best Practices, we can avoid duplication of effort and don't have to keep on resolving the same issues again and again. This frees us up to concentrate on delivering new functionality pertinent to the mining industry.
"This strong collaboration between the mining sector and SAP is already delivering real benefits for both parties and will continue to do so in the future," van Niekerk concludes.
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