Roy Hill is a world-class integrated iron ore mining, rail and port operation, and operator of the largest single mine in Australia. With annual shipments totaling over 55 million metric tons, Roy Hill set out on a mission to maximize the return for each metric ton of ore produced. One area of focus has been transforming the way assets are managed and maintained by increasing asset and spare parts availability, optimizing inventory, and improving supply chain collaboration.
To transition from a replenishment model to a demand-driven model and optimize demand management and inventory, Roy Hill worked with Bristlecone to pilot SAP Integrated Business Planning (IBP). Bristlecone was chosen for its ability to drive a collaborative, value-creating process that encourages diverse thinking and innovation.
“Implementing SAP IBP was a critical first step to improving asset and spare parts availability, visibility and supplier collaboration.” – Mike Lomman, General Manager Demand Chain, Roy Hill
SAP IBP now provides Roy Hill with 24-60 months of visibility into the demand for spare parts and has resulted in a 10-20% reduction in inventory levels for critical asset components.