Digitising Mining Procurement Using SCM Software
Mining procurement is under constant pressure. Sites need parts, consumables, and services delivered on time, while head office needs cost control, compliance, and supplier accountability. When procurement relies on emails, spreadsheets, and manual approvals, delays and overspending become common.
This is why more mining businesses are adopting SCM software to digitise procurement end-to-end. With the right platform, teams can standardise purchasing, improve supplier performance, track deliveries, and gain clear visibility across the mining supply chain. In this article, we explain what digitised procurement looks like in mining, how SCM software supports it, and how to implement it successfully.
Why Mining Procurement Needs Digitisation
Mining procurement is complex. It involves many sites, hundreds of suppliers, and high-value purchasing. Manual systems can’t keep up with the speed and risk level required.
Common challenges in traditional procurement
Purchase requests submitted by email or phone
Approval delays due to unclear workflows
Limited spend visibility across sites
Duplicate ordering and inconsistent pricing
Supplier documents stored in multiple locations
Poor tracking of deliveries and order status
Stockouts caused by disconnected inventory data
These issues reduce efficiency and increase downtime risk. Digitising procurement improves control and helps mining procurement services teams support sites faster.
Why procurement issues impact the entire mining supply chain
Procurement is the front end of the mining supply chain. If procurement is slow or inconsistent, it affects:
maintenance planning
production scheduling
contractor mobilisation
inventory levels
freight and logistics costs
Digitisation creates a more reliable flow of goods and services from suppliers to site.
How SCM Software Digitises Procurement Workflows
SCM software replaces manual procurement tasks with automated, trackable workflows. This makes procurement faster, clearer, and easier to audit.
Centralising procurement in one platform
A digitised procurement process uses one system for:
purchase requests
approvals
supplier selection
purchase orders
receiving and invoicing support
reporting and compliance
This improves accountability and reduces time spent searching for information.
Digital purchase requests and approvals
SCM software supports structured purchase requests that include:
item or service description
quantity and required date
site and cost centre
preferred supplier
attachments such as quotes
Approvals become faster because:
requests are routed automatically
approvers receive notifications
approval history is recorded
delays are visible and trackable
This strengthens mining procurement solutions by removing bottlenecks.
Purchase order automation
Once approved, the system can generate purchase orders quickly, reducing manual work and errors.
Benefits include:
fewer incorrect orders
standardised formats
clear supplier communication
faster order placement
Procurement software for mining companies often reduces admin time significantly through this automation.
SCM Software and Supplier Management in Mining
Mining depends heavily on suppliers, especially for specialised equipment and critical spares. Digitisation improves supplier performance and reduces supply risk.
Supplier onboarding and compliance control
Supplier management software can store and manage:
insurance and certification documents
safety and compliance records
contracts and pricing agreements
supplier contact details
This reduces compliance gaps and supports audits.
Tracking supplier performance
Digitised procurement makes it easier to track:
on-time delivery rates
order accuracy
lead time reliability
quality issues
This helps procurement teams:
identify high-risk suppliers
renegotiate service levels
reduce repeat delays
Preferred supplier lists and spend control
SCM platforms allow businesses to create rules such as:
approved suppliers per category
contract pricing
supplier ranking
restricted purchasing outside policy
This reduces maverick spend and supports cost control across multiple sites.
Connecting Procurement to Inventory and Logistics
Procurement does not work in isolation. Many delays happen because procurement, inventory, and logistics data aren’t connected.
Linking procurement with inventory
When procurement teams can see real stock levels, they can:
avoid ordering items already in stock
prevent duplicate purchases
plan reorders based on actual usage
support stock transfers between sites
Inventory and logistics management software for mining helps keep stores data accurate, reducing downtime caused by missing parts.
Delivery tracking and receiving
Digitised procurement supports end-to-end tracking, including:
order confirmation
dispatch updates
freight and delivery details
proof of delivery
receiving checks at site
This gives site teams confidence and improves planning.
Better coordination for shutdowns and critical maintenance
Mining shutdowns are time-sensitive. SCM systems help by ensuring:
long lead items are ordered early
deliveries align with shutdown schedules
missing items are flagged before work begins
This is a key advantage of using an end-to-end mining procurement platform.
Key Benefits of Digitising Mining Procurement
Faster purchasing cycles
Automation reduces time spent on:
manual forms
chasing approvals
re-entering data
fixing ordering errors
Better cost control and reporting
Digitisation improves spend visibility by:
site
supplier
category
cost centre
This helps identify savings opportunities and reduce waste.
Stronger compliance and audit readiness
Digital procurement creates:
approval trails
supplier records
policy enforcement
consistent documentation
This supports governance and reduces risk.
Reduced downtime risk
When procurement and inventory are aligned, sites can access:
critical spares
maintenance parts
consumables when they need them.
How to Implement Digitised Procurement Successfully
1) Map your current process
Before rollout, document:
how requests are raised
approval paths
supplier selection rules
purchasing policy gaps
2) Standardise procurement rules
Define:
preferred suppliers
approval limits
critical item lists
ordering templates
3) Start with high-impact categories
Many mining businesses start digitisation with:
maintenance spares
safety consumables
high-frequency items before expanding.
4) Train procurement and site teams together
Digitisation fails when only head office understands the system. Training should include:
site supervisors
maintenance planners
stores staff
procurement teams
5) Track improvements after go-live
Measure:
approval time
purchase order cycle time
emergency orders
delivery delays
stockouts
FAQ
What does digitising procurement mean in mining?
Digitising procurement means using a single platform to manage purchasing tasks such as requests, approvals, supplier selection, purchase orders, and delivery tracking instead of relying on emails and spreadsheets.
How does SCM software improve mining procurement?
SCM software improves mining procurement by automating workflows, improving visibility, controlling suppliers, connecting inventory data, and providing reporting for cost and compliance.
Can SCM software reduce procurement delays?
Yes. By speeding up approvals, reducing manual work, and tracking orders in real time, SCM software helps prevent delays across the mining supply chain.
Is SCM software useful for multi-site procurement?
Yes. SCM software supports consistent procurement processes across sites, including supplier rules, spend visibility, stock transfers, and central reporting.
What should mining companies prioritise when digitising procurement?
They should prioritise standardised workflows, supplier management, inventory visibility, delivery tracking, and training for both head office and site teams.