Client Problem

A mining company had previously implemented an inhouse logistics system and needed to update their current metal sales accounting system as well as their invoicing and logistics systems but were experiencing difficulty initiating the projects.

The mining company realised that their current systems for logistics, invoicing and accounting for metal sales were cumbersome and labour intensive. Due to an incomplete implementation, users were not using the current systems but were, instead, using spreadsheets for logistics as well as for some sales and invoicing. Business Unit Managers had made various recommendations to address this problem, from a silo approach, but were finding it difficult to initiate the project because the organisation lacked the IT project management skills required and the capacity to work across the supply chain from mine to market.

SMS was engaged to conduct a review of the mining company’s current financial systems program of work (including several upgrades as well as the logistics and sales invoicing projects).

SMS Approach

SMS engaged key stakeholders through a standardised interviewing process, reviewed all existing documentation and gathered detailed business requirements for the logistics system across the entire supply chain including an understanding of the sales requirements.

Drawing on extensive expertise in review and analysis and project management methodologies, SMS:

• gathered and reviewed all existing relevant documentation
• engaged both internal and external parties to identify interdependencies between the sales and invoicing system with the logistics system to ensure that the implementation of the sales and invoicing system would not preclude a decision on the correct logistics product
• prepared detailed business requirements and scenario documents to enable the vendor to demonstrate the product to the mining company
• engaged with the vendor to demonstrate the capability of the preferred logistics product to the senior business users in order to approve the purchase of the product
• evaluated between upgrading the existing system or implementing a new logistics system

Recommendation

SMS recommended that the logistics and sales invoicing projects be implemented and managed as a single project.

Although the logistics and sales invoicing projects were at different stages of the project lifecycle, there were strong interdependencies, as well as links in the supply chain process and parallel time frames. SMS recommended that the two projects be managed as a single, cohesive project.

Outcome

The mining company enjoyed financial benefits and standardised systems and processes across the supply chain from mine to market.

The mining company is benefiting from SMS’s holistic approach to the review of the program of work. This approach enabled us to provide multifaceted resources to assist the company across a range of work. To date, we have assisted them in the establishment of a dedicated Program Office and the gathering of comprehensive business requirements. As a result, the mining company has enjoyed financial benefits and the opportunity to standardise systems and processes across the supply chain from mine to market.