This is the ninth element of our Quarry Support service.
Because we view extraction and processing of aggregates from the pit or quarry as an extension of the warehouse concept, like any other supply chain business, we need to have a good understanding of our inventory. Not just today, but also how short, medium and long term demand will impact our different inventory levels.
Aggregates are unique due to the fact that when you manufacture a certain size or quality, you yield a high percentage of other size fractions or qualities. This often leads to an imbalance of stock levels. Like any business, many stakeholders need to know the amount of stock on hand.
With the advent of drones, measuring stockpiles has become more cost and time efficient. However, knowing the volumes of aggregates in the past doesn’t allow a producer to effectively manage production and sales in the future. This is extremely important as stock imbalances in aggregates take months, or years to correct.
By having the ability to predict the stock levels in the future – one, three, six or even twelve months out – allows for changes in production modes or configurations, or, pricing strategy from sales to help correct the situation. It is also important to flag potential issues with Finance.
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It's easy to sell fast moving products and ignore the more difficult ones, like fill from an overburden campaign.
Make sure that your sales staff are involved in quarry development planning and know what needs to be sold and when, concentrating on the entire product range to keep stocks in balance.