Home Industries 5 Key Benefits of ERP Software for Mining Companies

5 Key Benefits of ERP Software for Mining Companies

Mining involves so many processes including resource allocation, transportation and logistics management of equipment such as excavators, trucks, conveyor belts, and more. These complex processes require a system to simplify and even automate them, so that everything runs efficiently and finishes faster. One  system that can do all this is ERP (Enterprise Resource Planning) software. Below, we’ve summarized the five main benefits of ERP software for mining companies.

1. Efficient Project Management & Resource Allocation

In mining companies, project management and resource allocation are one of the most important aspects that determine the smoothness of the mining process. Sometimes, projects aren’t always properly monitored and resources scattered in various places are out of reach so that various obstacles are difficult to predict and mitigate.

With ERP software, every project progress can be tracked easily, managers can find out which workers have not been distributed to the work sites yet, which workers are the most competent to work on task A and which are competent to work on task B, what delays occur, etc. . Workers can also be given access rights to update their project status. ERP systems allow workers to focus more on carrying out their responsibilities and know what they should prioritize.

2. Improved Transport & Logistics Efficiency

The smooth operation of a mining project depends on transport and logistics as well so both must always work well. ERP software provides features that help ensure smooth transport and logistics such as driver management, route planning, cargo management, cargo capacity management, transport reservations, and many more.

ERP software also helps you keep track of your transport conditions, making it easier for you to schedule routine maintenance and record all transactions involving all your transportation.

3. Better Mining Asset Management

Mining involves a variety of equipment that must be managed properly. If the equipment is damaged, the mining project may be terminated as a consequence. The asset management module in the ERP system helps automate the management of mining company’s assets.

With an ERP system, asset maintenance can be scheduled automatically. Asset managers can even get a reminder when the maintenance schedule is approaching. They can also conduct inspections and record the results of inspections in a centralized database. Assets that are spread across various locations can be easily tracked and their value can be measured so that managers can know how long the assets can be used (as well as the profits they generate).

4. Simplified Performance Evaluation & Payroll Management

Mining workers are scattered in various locations and this is why it is difficult to pay attention to their performance. Managing miners’ salaries is also not easy, because payroll may be based on hours or days, attendance, and may also depend on achievement. This requires good monitoring.

With ERP software, managers can pay attention to the performance of each worker better and their performance can be easily analyzed through analytic reports. Attendance and leave of workers can be recorded properly. Shift schedules can be monitored and managed well. Salary calculation can be done automatically so that any human error can be avoided.

5. Better Controlled Finances

One of the most important benefits of ERP software for mining companies is better controlled finances. The accounting module in the ERP system allows you to forecast your revenue and expenses with high accuracy. This system also helps you manage your budget more wisely by tracking every dollar in and out so you can find out where you can save. In essence, an ERP system helps reduce operating costs by minimizing unnecessary purchases, activities and labor usage.

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