2B or Not 2B? E-Commerce in Mining

Many portions of the mining industry are under intense pressure to reduce costs while commodity prices languish. In response, global Internet-based marketplaces to deliver business-to-business (B2B) e-commerce solutions are being established to reduce costs and improve efficiencies across the mining industry supply chain as well as with customers. Over time these marketplaces will likely evolve to create an integrated supply chain solution, layer in value-added services, and develop mining community portals with industry content. Significant opportunities to help reduce costs and create value are available in mining e-procurement as well as in on-line product sales. The supply chain for the industry is highly fragmented and many mining companies have numerous inefficiencies in procurement. An e-procurement marketplace (or "exchange") can immediately address these inefficiencies and offer numerous benefits to buyers and suppliers. These benefits include improved sourcing options, inventory cost reduction, transaction cost reduction, access to value-added services, lower customer and supplier acquisition costs, improved reach, and improved information flows.