Winning and Retaining Business in the Australian Mining Equipment Sector, 2016

Published: Mar, 2016 | Pages: 41 | Publisher: Timetric
Industry: Mining | Report Format: Electronic (PDF)

Synopsis
This report provides a detailed analysis of customer preferences in the Australian 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, procurement managers and other key decision-makers.

Areas of analysis include:

Identification of the leading equipment suppliers in Australia by equipment type

Analysis of the key factors mine managers and other decision makers consider when choosing a new supplier

A review of the largest suppliers in terms of performance across a range of factors that affect their customers' expectations

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:

Caterpillar is considered the leading supplier for most of its product range.

When choosing a new supplier, a 'trusted brand' and 'a previous working relationship' are key factors.

Account managers have a key impact on the selection process.

Respondents remain satisfied with their current main suppliers, and satisfaction has improved since 2014.

Overall, 87% of respondents expect to remain with their current suppliers for the next five years.

The top three areas for improvement identified by respondents were 'availability of parts', 'product quality and reliability' and 'ability to support cost reductions'.

Scope
The report is based on responses from a survey of 100 senior decision makers at operating Australian mines, responsible for the purchase of equipment for plant and mine operations, along with its consumables.
Survey respondents came from seven different states and territories, with Western Australia, Queensland and New South Wales accounting for 88% of the respondents. This included four main commodity groups and a range of surface and underground mining operations.

Reasons to Buy
Understand what buyers consider most important when choosing a new supplier, broken down into different customer types (e.g. underground v surface).

Identify key areas for differentiation by understanding what factors have most influenced the final 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
Caterpillar is considered the leading supplier for most of its product range.

When choosing a new supplier, a 'trusted brand' and 'a previous working relationship' are key factors.

Account managers have a key impact on the selection process.

Respondents remain satisfied with their current main suppliers, and satisfaction has improved since 2014.

87% of respondents expect to remain with their current suppliers for the next five years.

The top three areas for improvement identified by respondents were 'availability of parts', 'product quality and reliability' and 'ability to support cost reductions'.

 Table of Contents
1 Executive Summary
2 Leading Manufacturers in Australian Mining
2.1 Introduction
2.2 Market Share for Equipment Types within Australia
2.3 Caterpillar Dominates Views on Leading Manufacturer
2.4 Incumbency Doesn't Translate to Leading Supplier Status
3 Choosing New Suppliers
3.1 Introduction
3.2 Key Factors in Choosing a New Supplier
3.3 Key Factors when Choosing a New Supplier by Current Main Supplier
4 How Suppliers Differentiated Themselves
4.1 Introduction 
4.2 Relationship Managers Again Continue to be Key
4.3 Differentiation by Current Main Supplier
5 Supplier Performance and Key Success Factors
5.1 Introduction
5.2 Overall Supplier Performance
5.3 Performance by Company
6 Customer Retention and Key Improvement Areas
6.1 Introduction
6.2 Respondents Expect to Stay with their Current Supplier 
6.3 Product Quality and Good Relationships are the Main Factors in Keeping Current Supplier
6.4 Parts Availability Remains a Key Area for Improvement
7 Action Points and Recommendations 
8 Appendix I
8.1 Selected Data Tables
9 Appendix II
9.1 Survey Background
9.2 Analysis of the Survey Sample
10 Appendix III
10.1 What is This Report About?
10.2 Methodology 
10.3 Contact Timetric 
10.4 About Timetric 
10.5 Disclaimer

List of Tables
Table 1: Equipment types sourced from current main supplier, Q4 2015 
Table 2: Top Factors when choosing a new supplier based on current main supplier, Q4 2015
Table 3: Key Factors for Choosing a new supplier, Q4 2015 
Table 4: Reasons for Staying with Main Current Supplier, Q4 2015 
Table 5: Top improvement areas for customers based on current main supplier, Q4 2015
Table 6: Factors when choosing a new supplier, Q4 2015 
Table 7: Factors when choosing a new supplier by main current supplier, Q4 2015 
Table 8: Factors when choosing a new supplier by mine type, Q4 2015 
Table 9: Factors when choosing a new supplier by company size, Q4 2015 
Table 10: When Choosing to Buy from this Supplier, Where do you Feel They Differentiated Themselves as Part of the Selection Process Relative to the Competition? Q4 2015 
Table 11: Performance Ratings for Main Supplier, 2015
Table 12: Factors when choosing a new supplier by main current supplier, Q4 2015
Table 13: Areas for Improvement, 2015 v 2014