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Winning and retaining business in the mining equipment sector in Asia-Pacific, 2016 – a survey of key buyers and decision-makers

Winning and retaining business in the mining equipment sector in Asia-Pacific, 2016 – a survey of key buyers and decision-makers

Synopsis

Overall trends in the data revealed:

Customer priorities in supplier selection are samples and demonstrations of products and services to trial, and previous working relationships with trusted brands

Suppliers perform well overall, but have lower levels of satisfaction in key maintenance and logistical issues

Caterpillar received the highest average satisfaction ratings in 8 categories and was considered the leading supplier for most categories of surface mining equipment

Account managers make a significant impact in the selection process, alongside having a trusted brand in the market.

Customers in Asia are very happy with their current supplier with only 12% are open to change in the medium term

Product quality and reliability was the stand out area highlighted for improvement

Summary

This report provides a detailed analysis of customer preferences throughout the Asia-Pacific mining sector, focusing on the factors that influence purchasing decisions and the performance of major equipment suppliers in the region. The analysis is based on Timetric’s extensive survey of over 110 senior decision makers.

Areas of analysis include:

  • Customer satisfaction ratings on the performance of their main equipment supplier across 16 categories. Identifying which areas of business suppliers are excelling and which suppliers are out-performing the competition.
  • Identify which factors influence the decision making process for choosing an equipment supplier.
  • Analysis of the major suppliers, namely Caterpillar, Komatsu, Sandvik, and Atlas Copco, including their performance ratings compared to the overall average.
  • Rankings of the leading suppliers for each equipment type, with respondents indicating who they viewed as the top suppliers throughout Asia for trucks, excavators, loaders, shovels, dozers, drills, continuous miners, engines, tires, pumps.
  • Insight into the likelihood of switching supplier, and the median perceived lifespan, in years, for select mining equipment.
  • Key action points for suppliers for product and service improvements, highlighted by their customers.
Scope

The report is based on responses from a survey of over 110 senior decision makers at operating Asia-Pacific mines, responsible for the purchase of equipment for plant and mine operations, along with its consumables. Survey respondents represented 8 different countries including: India, Indonesia and the Philippines. This included four 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
  • Manufacturers performed well with miners most satisfied with their 'ability to develop a long-term partnership' and their 'product quality and reliability'.
  • Mines were most dissatisfied with ‘price', 'lead time, speed to deliver and install equipment' and 'on-time delivery and installation of equipment'.
  • Overall the major suppliers such as Caterpillar, Komatsu, Sandvik and Atlas Copco perform well in terms of customer satisfaction, with Caterpillar dominant in 8 of the 16 factors examined.
  • Account managers make a significant impact in setting a manufacturer apart from their competition during the selection process, as the respondents cited ‘Better understanding of your needs’, 'Better ability to build a long-term partnership', 'Demonstrated their product was superior', 'Better tendering skills', 'Better timing of contact' and 'Better track record/expectations of delivery online' as key differentiating factors when choosing their current main supplier.
  • ‘Product quality and reliability’, ‘availability of replacement parts’ and ‘ability to support cost reduction’ are the three leading areas considered by miners to require manufacturer improvement.
  • "


  • EXECUTIVE SUMMARY
  • MINING IN ASIA PACIFIC & THE MAJOR EQUIPMENT MANUFACTURERS
    • Introduction
    • Major Heavy Equipment Suppliers in Asia
    • Leading Manufacturers by Equipment Type
    • OEM Shares by Country
    • Choice of Main OEM by Commodity
  • KEY FACTORS WHEN CHOOSING A SUPPLIER
    • Introduction
    • Key Factors in Choosing a New Supplier
    • Key Factors when Choosing a New Supplier in India, Indonesia and the Philippines
    • Key Factors when Choosing a New Supplier by Current Main OEM
    • Key Consideration When Choosing a New Supplier
    • How Winning Suppliers Differentiated Themselves
    • How Winning Suppliers Differentiated Themselves in India, Indonesia and the Philippines
    • Differentiation by Main Supplier
  • SUPPLIER PERFORMANCE AND CUSTOMER SATISFACTION
    • Introduction
    • Overall Supplier Performance
    • Satisfaction Ratings in India, Indonesia and the Philippines
    • Satisfaction Ratings by Commodity
    • Satisfaction Ratings by Company Revenue
    • Satisfaction Ratings by Mine Size
    • Satisfaction by Main Supplier
      • Caterpillar - respondent breakdown and satisfaction ratings
      • Komatsu - respondent breakdown and satisfaction ratings
      • Sandvik - respondent breakdown and satisfaction ratings
      • Atlas Copco - respondent breakdown and satisfaction ratings
    • Likelihood for OEM to Continue as a Main Supplier for the Next 5 Years
      • Reasons why respondents said `no'
      • Likelihood for current OEM to continue as a main supplier for the next 5 years
    • Median Expected Lifespan of Equipment On-Site
  • KEY IMPROVEMENT AREAS FOR MANUFACTURERS
    • Introduction
    • Parts Availability Remains the Overall Key Area for Improvement
    • Areas for Improvement - 2014 versus 2016
    • Areas for Improvement Based on Main OEM
      • Table Top Improvement Areas For Caterpillar Customers by Country (%), 2016
    • Areas for Improvement Based on Company Revenue
  • ACTION POINTS AND RECOMMENDATIONS
  • APPENDIX I
    • Table Importance of Factors When Choosing a New Supplier by Country, 2016
    • Table Importance of Factors When Choosing a New Supplier by Main OEM, 2016
    • Table Areas Where Main Suppliers Differentiated Themselves From Their Competitors (%), 2016
    • Table Differentiation by Country (%), 2016
    • Table Differentiation by Main OEM (%), 2016
    • Table Comparison of Average Satisfaction Ratings, 2014 versus 2016
    • Table Average Satisfaction Ratings by Country, 2016
    • Table Average Satisfaction Ratings by Commodity, 2016
    • Table Average Satisfaction Ratings by Main OEM, 2016
    • Table Average Satisfaction Ratings by Company Revenue (%), 2016
    • Table Areas for Improvement for Equipment Suppliers, 2016
    • Table Areas for Improvement Comparison - 2014 versus 2016 (%)
    • Table Areas for Improvement by Main OEM (%), 2016
    • Table Areas for Improvement by Company Revenue (%), 2016
  • APPENDIX II
    • Survey Background
    • Analysis of the Survey Sample
  • APPENDIX III
    • What is This Report About?
    • Methodology
    • Contact Timetric
    • About Timetric
    • Disclaimer

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