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Winning and Retaining Business in the Latin American Mining Equipment Sector, 2015

Winning and Retaining Business in the Latin American Mining Equipment Sector, 2015

Synopsis

This report provides a detailed analysis of customer preferences throughout the Latin American 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 over 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 – Caterpillar, Komatsu and Atlas Copco – including their overall performance ratings, and ratings for each factor relative to its importance.
  • Rankings of the leading suppliers for each equipment type, with respondents indicating which they viewed as the top suppliers throughout Latin America for trucks, excavators, loaders, shovels, dozers, drills, continuous miners, engines, tyres, pumps and mining software.
  • Insights 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 each of the 16 factors, and was considered the leading supplier for most categories of mining equipment.
  • Maintenance and service provisions made a significant impact in the selection process, alongside a company's account managers.
  • Customers in Latin America are happy with their current supplier but one-quarter are open to change in the medium term.
  • Product quality and reliability was the standout area identified for improvement.
Scope
  • The report is based on responses from a survey of over 100 senior managers at operating Latin American mines, responsible for the purchase of equipment for plant and mine operations, along with consumables.
  • Survey respondents came from 14 different countries, including Peru, Chile, Colombia, Brazil, Mexico, Venezuela, Dominican Republic and Bolivia.
  • 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 50% and 42% of respondents, respectively, indicating a need for improvement in those two areas.
  • Mines were most dissatisfied with cost related factors, namely ‘Maintenance and service costs’ and ‘Lowest (equipment) cost’.
  • Overall the major suppliers such as Caterpillar, Komatsu and Atlas Copco perform well in terms of customer satisfaction, with Caterpillar particularly dominant across each of the 16 factors examined.
  • While suppliers' 'maintenance and service provisions' 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’, ‘availability of replacement parts’, and ‘ability to support cost reduction/minimization’


  • EXECUTIVE SUMMARY
    • Table Highest Average Rated Supplier for Each Factor, 2015
  • 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 Country
    • Key Factors When Choosing a Supplier - By Commodity
    • Key Factors When Choosing a Supplier - By Company Size
  • SUPPLIER PERFORMANCE AND KEY SUCCESS FACTORS
    • Introduction
    • Overall Supplier Performance
    • Satisfaction Ratings by Country
    • Satisfaction Ratings by Commodity
    • Leading Suppliers by Category
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier, 2015
    • Benchmarking Key Suppliers
      • Caterpillar
      • Komatsu
      • Atlas Copco
      • Customer satisfaction comparison of leading suppliers
    • Leading Manufacturers by Equipment Type
    • How Suppliers Differentiated Themselves
      • Comparing differentiating factors across the leading suppliers
      • Comparison of leading suppliers by country
  • CUSTOMER RETENTION AND KEY AREAS OF IMPROVEMENT
    • Introduction
    • Post-Sales Satisfaction with Suppliers
    • Post-Sales Satisfaction by Country
    • Post-Sales Satisfaction by Main Supplier
    • Post-Sales Satisfaction by Commodity
    • Post-Sales Satisfaction Comments
    • Anticipated Switching Within the Next Five Years
    • Anticipated Switching Within the Next Five Years by Country
    • Anticipated Switching Within the Next Five Years by Commodity
    • Key Areas for Product and Service Improvement
    • Key Areas for Product and Service Improvement by Country
    • Key Areas for Product and Service Improvement by Commodity
  • ACTION POINTS AND RECOMMENDATIONS
  • APPENDIX I
    • Selected Data Tables
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier, 2015
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier by Mine Type, 2015
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier by Country, 2015
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier by Commodity, 2015
      • Table Average Ratings for Key Factors When Choosing an Equipment Supplier by Company Size, 2015
      • Table Average Importance Ratings vs. Average Performance Ratings for Main Supplier, 2015
      • Table Average Satisfaction Ratings by Country, 2015
      • Table Average Satisfaction Ratings by Commodity, 2015
      • Table Caterpillar - Customer Satisfaction Ratings and Average Importance Ratings, 2015
      • Table Komatsu - Customer Satisfaction Ratings and Average Importance Ratings, 2015
      • Table Atlas Copco - Customer Satisfaction Ratings and Average Importance Ratings, 2015
      • Table Comparison of Customer Satisfaction Ratings for Caterpillar, Komatsu and Atlas Copco, 2015
      • Table Areas Where Main Suppliers Differentiated Themselves from their Competitors (%), 2015
      • Table Differentiation by Main Supplier (%), 2015
      • Table Differentiation by Country (%), 2015
      • Table "Would you Choose the Same Manufacturer?" by Country (%), 2015
      • Table "Would you Choose the Same Manufacturer?" by Main Supplier (%), 2015
      • Table "Would you Choose the Same Manufacturer?" by Commodity (%), 2015
      • Table Anticipated Switching within Five Years by Country (%), 2015
      • Table Anticipated Switching within Five Years by Commodity (%), 2015
      • Table Areas for Improvement for Equipment Suppliers, 2015
      • Table Key Areas for Improvement by Country (%), 2015
      • Table Key Areas for Improvement by Commodity (%), 2015
  • 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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