Nintex > Case Studies > Automating Procurement Processes: A Case Study on First Quantum Minerals, Ltd.

Automating Procurement Processes: A Case Study on First Quantum Minerals, Ltd.

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Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • Mining
  • Transportation
Applicable Functions
  • Logistics & Transportation
  • Procurement
Use Cases
  • Last Mile Delivery
  • Time Sensitive Networking
Services
  • System Integration
About The Customer
First Quantum Minerals, Ltd. is a global copper company that produces copper in the form of concentrate, cathode, and anode, and has inventories of nickel, gold, and cobalt. The company operates long-life mines in several countries and employs approximately 20,000 people worldwide. Known for its 'can do' attitude and specialist technical, engineering, construction, and operational skills, First Quantum Minerals, Ltd. has the capability to develop and successfully run complex mines and minerals processing plants. After 25 years of operations, the company is now one of the world's top 10 copper producers, exporting millions of tons of concentrate from multiple countries to customers worldwide.
The Challenge
First Quantum Minerals, Ltd., a global copper company, was facing challenges with its procurement processes. The company's Electrical and Instrumentation (E&I) department was responsible for extensive procurement for projects worldwide. The procurement process was manually tracked through emails, spreadsheets, and physical paperwork, making it complicated and prone to errors. The team had to source materials from all corners of the globe, compare quotations from suppliers in different currencies, and deal with assorted units of measure. The manual process was not only time-consuming but also resulted in delays and pressure on the team to deliver accurately and on time.
The Solution
To streamline and integrate the procurement processes, First Quantum Minerals, Ltd. partnered with Linxus to implement K2 Software workflows. The solution automated various aspects of procurement and cost-reporting systems, starting with materials requests. It added a line-level quote rationalization and optimization function and automated processes through shipping to onsite delivery. The solution also enabled field employees to access forms and documents, submit proof of delivery, predict delivery mapped to purchase orders, and expedite accurate on-time payments. The reporting feature, incorporating Power BI dashboards, allowed users to better understand the data and visualize procurement trends and spend across project procurement. The solution also standardized currency and unit of measure conversions and established system access and reporting from anywhere in the world.
Operational Impact
  • The implementation of K2 Software workflows transformed the procurement process at First Quantum Minerals, Ltd. The solution replaced the manual spreadsheet entry with simple, flexible workflows, allowing team members from across the globe to select, compare, cost, procure, track, reconcile, and pay through a single tracking system. This made the process more convenient, reliable, accurate, and allowed for better reporting and accurate cost accounting. The solution also took the requirement of physical baskets of paper and a giant whiteboard for tracking out of the process. The team now regards the K2 Software framework and implementing partner, Linxus, as an extension of its own development hub, providing high flexibility and a continuous improvement approach through the iterations developed over the past three years.
Quantitative Benefit
  • 50% more cost-effective solution
  • 30% reduction in processing time and management of procurement process
  • Eliminated manual data entry

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