Client Background

Masan Resources is one of the largest private sector  natural resource  companies in Vietnam, currently developing the world-class Poly-metallic mining project, in northern Vietnam. Nui  Phao  Mining  Co. Ltd. (NPMC, a  part  of  Masan group)  planned  to streamline the production, sales, and logistics process, remove information silos and present organization wide integration in these functional areas.

Industry Landscape

The Mining Industry across the world has shifted focus from manual processes  and point  solutions, to  a single  source  of  truth  across  the  organization. This  enables transformation from information silos to tightly integrated processes, leveraging the best practice provided by the SAP ERP solutions. SAP is the primary choice, and miners overwhelmingly prefer SAP for back office automation and front office agility.

The Opportunity

NPMC management articulated improvements in three  major pain areas – Reconciliation of Physical and Book Stock at different locations, Tracking of Production and Shipment Assays, Pricing & Compliance with statutory needs.

Solution

Wipro’s Agile Mining SAP Best practice solution was implemented in the scope and budget within 3.5 months, resulting in the client being able to do business better with:

• Enhanced Production Planning of finished goods such as Bismuth, Fluorspar, Tungsten and Copper production
• Management and Tracking of Run of Mine Stock levels and crushed ROM Production as well as stock transfer from mine to port
• Management of the quality of the products by Assay upload on a daily basis, with the use of Batch Management
  
• Enhanced    Sales   and   Distribution   efficiency,   enabling   the contract-to-cash cycle that included the integration between Weighbridge and SAP, and automated determination of batches to be sold based on Assays
• Alert  mails, with  Bag/Batch  numbers, to the production team if Assays are not uploaded within a stipulated time-frame
• Real-time interface between Weighbridge and SAP puts  a strict control  on  the  outflow quantity, tracks  loss in transit  quantity, imposes better  monitoring and reconciliation of stock across locations. A Sales Invoice based on the  weight measured  in the weighbridge, ensures near perfect revenue booking in the books of accounts

Business Impact

• Elimination of Information Silos and better  integration between production and logistics delivery, by providing an early warning to the processing team, enabling them to take right decisions at the right time
• Batch traceability from production to sales, that helps in physical and book inventory reconciliation
• Sell Tungsten, Copper, Bismuth and Fluorspar end-to-end  – from contract  setup to customer  settlement, in an automated  fashion, thereby  improving sales order  cycle efficiency and plug revenue leakages, as well as improving auditability
• Manage master data like customer, materials & comprehensive price master, at a contract  level, as well as tax and duty setups with the ability to revise price, tax and duty master as and when needed
• Integrated Weighbridge application to SAP, capturing weight directly from digitizer, removing human factor and imposing control in the process or inventory management