Demand Planning & Forecasting

Responsible departments:

Operations, Maintenance, Supply Chain, Planning

Effective demand planning and forecasting is critical to aligning material availability with operational needs. This process must be informed not only by short-term production schedules but also by long-term Life of Mine (LoM) and asset management plans, to ensure materials are available throughout the entire mining lifecycle. Additionally, demand forecasts must consider global factors such as supply chain disruptions, commodity market volatility, and geopolitical events that can impact material lead times and availability.

  • Identify spares, and critical components requirements based on operational and maintenance plans. (AM function) Consider historical usage trends, lead times, and supplier reliability. Min/max levels set
  • Forecast demand for consumables (warehousing function)
  • Use predictive analytics and ERP (e.g., Pronto, SAP, MEX) for accurate forecasting.

Inputs

Life of Mine plans, asset plans, production schedules, market/global data

Outputs

Material demand forecasts, budget requirements

Benefits

Optimised inventory levels, aligned material availability with production needs

Demand Planning & Forecasting

Spare Parts for Assets

Strategic Sourcing & Contracts

Procurement & Vendor Management

Logistics & Shipping

Cataloguing

Repairable Item Process

Inventory Master Data

Warehousing Management

Inventory Management

Fulfill Customer Requirements

Obsolete Review, Revalue or Write Off

Continuous Improvement

Cost Control

Analyse Performance

Materials Management Framework

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"Materials Management is the process of planning, acquiring, handling, and controlling materials used in production or operations. It ensures that the right materials are available at the right time, in the right quantity, and at the right cost."