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Winning and Retaining Business in the European and Former Soviet Union Mining Equipment Sector, 2015

Winning and Retaining Business in the European and Former Soviet Union Mining Equipment Sector, 2015

Synopsis

This report provides a detailed analysis of customer preferences throughout the European and Former Soviet Union mining sector, focusing on the factors that influence purchasing decisions and the performance of major equipment suppliers. The analysis is based on Timetric’s extensive survey of 100 mine managers and procurement managers.Areas of analysis include:

  • Customer priorities when buying mining equipment, with ratings of the importance of 18 separate factors, and the satisfaction ratings on 16 factors, for customers when choosing mining equipment, including cost factors, supplier attributes and product attributes.
  • Ratings of existing suppliers across the same factors, identifying best-performing suppliers and how well suppliers performed versus the importance of each factor.
  • In-depth analysis of the major suppliers, namely Caterpillar, Atlas Copco, and Sandvik, including their overall performance ratings, and their ratings for each factor relative to its importance.
  • Rankings of the leading suppliers for each equipment type, with respondents indicating who they viewed as the top suppliers throughout Europe and the former Soviet Union for trucks, excavators, loaders, shovels, dozers, drills, continuous miners, engines, tyres, pumps and mining software.
  • Insight into the likelihood of switching supplier and key action points for suppliers for product and service improvements required.
Summary

Overall trends in the data revealed:
  • Customer priorities in supplier selection are product quality and availability of parts
  • Suppliers perform well, but have lower levels of satisfaction in key areas
  • Caterpillar received the highest average satisfaction ratings in nine of the 16 factors, and was considered the leading supplier for most categories of mining equipment
  • Account managers make a significant impact in the selection process, alongside suppliers' ability to deliver on time
  • Customers in Europe and the former Soviet Union are happy with their current supplier but almost one-third are open to change in the medium term
  • Product quality and reliability was the stand out area identified for improvement
Scope

The report is based on responses from a survey of 100 senior managers at operating European and former Soviet Union mines, responsible for the purchase of equipment for plant and mine operations, along with its consumables. Survey respondents came from 23 different countries including: Russia, Sweden, Kazakhstan, Turkey, United Kingdom, Finland, Spain and Ukraine. This included five different commodity groups and a range of surface and underground mining operations.

Reasons To Buy
  • Identify key areas for differentiation by understanding what factors most influence choice of supplier
  • Target product and service improvement areas based on where mining equipment suppliers are currently underperforming relative to customer expectations
  • Develop successful sales and marketing strategies through an understanding of the leading competitors and their strengths and weaknesses.
Key Highlights
  • When choosing an equipment supplier, respondents rate ‘Product quality/reliability’ and the ‘Availability of replacement parts’ as most important, with 60% and 29% of respondents, respectively, indicating a need for improvement in those two areas.
  • Overall the major suppliers such as Caterpillar, Atlas Copco and Sandvik perform well in terms of customer satisfaction.
  • While suppliers' abilities to deliver on time set them apart during the selection process, account managers make a significant impact as the respondents cited 'Demonstrated product was superior', ‘Better understanding of your needs’ and ‘Better timing of contact’ as key differentiating factors when choosing their current main supplier.
  • The three leading areas for improvement identified by respondents were ‘product quality and reliability’, ‘ability to support cost reduction’, and ‘after sales service’


  • EXECUTIVE SUMMARY
    • Table Highest Average Rated Supplier for Each Criterion, 2014/15
  • CUSTOMER PRIORITIES IN SUPPLIER SELECTION
    • Introduction
    • Key Factors when Choosing a Supplier
    • Key Factors when Choosing a Supplier - By Mine Type
    • Key Factors when Choosing a Supplier - By Region
      • Table Respondent Countries and Regions, 2014/15
    • Key Factors when Choosing a Supplier - By Commodity
    • Key Factors when Choosing a Supplier - By Company Size
    • Summary
  • SUPPLIER PERFORMANCE AND KEY SUCCESS FACTORS
    • Introduction
    • Overall Supplier Performance
    • Satisfaction Ratings by Region
    • Leading Suppliers by Category
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier, 2014/15
    • Benchmarking Key Suppliers
      • Caterpillar
      • Atlas Copco
      • Sandvik
      • Comparison of leading suppliers
      • Overview of the remaining suppliers
    • Leading Manufacturers by Equipment Type
    • How Suppliers Differentiated Themselves
      • Comparison of leading suppliers
  • CUSTOMER RETENTION AND KEY AREAS OF IMPROVEMENT
    • Introduction
    • Post-Sales Satisfaction with Suppliers
    • Customer Ratings of Main Supplier Relative to Peer Group
    • Anticipated Switching Within the Next Five Years
    • Key Areas for Product and Service Improvement
  • ACTION POINTS AND RECOMMENDATIONS
  • APPENDIX I
    • Selected Data Tables
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier, 2014/15
      • Table Average Ratings for Key Factors when Choosing an Equipment Supplier by Mine Type, 2014/15
      • Table Average Importance Ratings vs. Average Performance Ratings for Main Supplier, 2014/15
      • Table Main Heavy Mobile Equipment Suppliers by Share of Respondents (%), 2014/15
      • Table Caterpillar - Customer Satisfaction Ratings and Average Importance Ratings, 2014/15
      • Table Atlas Copco - Customer Satisfaction Ratings and Average Importance Ratings, 2014/15
      • Table Sandvik - Customer Satisfaction Ratings and Average Importance Ratings, 2014/15
      • Table When Choosing this Supplier, Where do you Feel They Differentiated Themselves from the Competition? (%), 2014/15
      • Table If You Had The Choice Again, Would You Choose The Same Manufacturer? (%), 2014/15
      • Table View of Main Mobile Mining Equipment Supplier vs. Peers in the Market (%), 2014/15
      • Table Do You Anticipate Switching to a Different Supplier Within the next Five Years? (%), 2014/15
      • Table Customer Satisfaction Ratings for Sandvik, Atlas Copco and Caterpillar, 2014/15
      • Table Satisfaction Ratings by Region, 2014/15
      • Table `Do you Anticipate Switching to a Different Supplier within the Next Five Years?' by Region (%), 2014/15
      • Table `Would you Choose the Same Manufacturer Again?' by Region (%), 2014/15
  • APPENDIX II
    • Survey Background
    • Analysis of the Survey Sample
    • Equipment Sourced from Main Supplier
  • APPENDIX III
    • What is This Report About?
    • Methodology
    • Contact Timetric
    • About Timetric
    • Disclaimer

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