Winning and retaining business in the African mining equipment sector, 2016 – A survey of key buyers and decision makers

Overall trends in the data revealed: Customer priorities in supplier selection are samples of products and services to trial, including demonstrations from trusted brands in the market Suppliers perform well, but have lower levels of satisfaction in key maintenance and logistical issues Caterpillar received the highest average satisfaction ratings and was considered the leading supplier for most categories of surface mining equipment Account managers made a significant impact in the selection process, alongside having a trusted brand in the market. Customers in Africa are very happy with their current supplier with only 10% are open to change in the medium term The availability of parts was the standout area highlighted for improvement.

Scope

The report is based on responses from a survey of over 110 senior decision makers at operating African mines, responsible for the purchase of equipment for plant and mine operations, along with its consumables. Survey respondents came from 15 different countries, including South Africa, Zambia, Tanzania and Zimbabwe. This included four different commodity groups and a range of surface and underground mining operations.

Reasons to buy

Identify key areas for differentiation by understanding what factors most influence choice of supplier

Target product and service improvement areas based on where mining equipment suppliers are currently underperforming relative to customer expectations

Develop successful sales and marketing strategies through an understanding of the leading competitors and their strengths and weaknesses.

Companies mentioned

Caterpillar

Komatsu

Hitachi

Atlas Copco

Sandvik

Liebherr

Volvo

Volvo Penta

P&H

Cummins

Bridgestone

Goodyear

Michelin

Dunlop

Continental

Bell Equipment

Table of Contents

1 Executive Summary

2 Main Manufacturers of Heavy Equipment

2.1 Introduction

2.2 Major Heavy Equipment Suppliers in Africa

2.3 Leading Manufacturers by Equipment Type

2.4 OEM Shares by Country

2.5 Choice of Main OEM by Commodity

3 Key Factors When Choosing A Supplier

3.1 Introduction

3.2 Key Factors in Choosing a New Supplier

3.3 Key Factors when Choosing a New Supplier, by Country

3.4 Key Factors when Choosing a New Supplier, by Region

3.5 Key Factors when Choosing a New Supplier, by Current Main OEM

3.6 Key Consideration When Choosing a New Supplier

3.7 How Winning Suppliers Differentiated Themselves

3.8 How Winning Suppliers Differentiated Themselves, by Country

3.9 Comparison Differentiation by Current Main Supplier

4 Supplier Performance and Customer Satisfaction

4.1 Introduction

4.2 Overall Supplier Performance

4.3 Satisfaction Ratings by Country

4.4 Satisfaction Ratings by Commodity

4.5 Satisfaction Ratings by Company Revenue

4.6 Satisfaction Ratings by Mine Size

4.7 Satisfaction by Main Supplier

4.7.1 Caterpillar – respondent breakdown and satisfaction ratings

4.7.2 Sandvik – respondent breakdown and satisfaction ratings

4.7.3 Komatsu – respondent breakdown and satisfaction ratings

4.7.4 Atlas Copco – respondent breakdown and satisfaction ratings

4.8 Likelihood for OEM to Continue as a Main Supplier for the Next 5 Years

4.8.1 Reasons why respondents said ‘no’

4.9 Median Expected Lifespan of Equipment On-Site

4.10 Median Lifespan of Equipment by Country

5 Key Improvement Areas For Manufacturers

5.1 Introduction

5.2 Parts Availability Remains the Overall Key Area for Improvement

5.3 Areas for Improvement – 2014 versus 2016

5.4 Areas for Improvement Based on Main OEM

5.5 Areas for Improvement Based on Region

5.6 Areas for Improvement Based on Company Revenue

6 Action Points and Recommendations

7 Appendix I

8 Appendix II

8.1 Survey Background

8.2 Analysis of the Survey Sample

9 Appendix III

9.1 What is This Report About?

9.2 Methodology

9.3 Contact GlobalData

9.4 About GlobalData

9.5 Disclaimer

List of Tables

Table 1: Countries Covered in Western, Southern and Eastern Africa, 2016

Table 2: Top Improvement Areas For Caterpillar Customers by Country (%), 2016

Table 3: Importance of Factors When Choosing a New Supplier by Country, 2016

Table 4: Importance of Factors When Choosing a New Supplier by Main OEM, 2016

Table 5: Areas Where Main Suppliers Differentiated Themselves From Their Competitors (%), 2016

Table 6: Differentiation by Country (%), 2016

Table 7: Differentiation by Main OEM (%), 2016

Table 8: Comparison of Average Satisfaction Ratings, 2014 versus 2016

Table 9: Average Satisfaction Ratings by Country, 2016

Table 10: Average Satisfaction Ratings by Region, 2016

Table 11: Average Satisfaction Ratings by Commodity, 2016

Table 12: Average Satisfaction Ratings by Main OEM, 2016

Table 13: Average Satisfaction Ratings by Company Revenue (%), 2016

Table 14: Areas for Improvement for Equipment Suppliers, 2016

Table 15: Areas for Improvement Comparison – 2014 versus 2016 (%)

Table 16: Areas for Improvement by Main OEM (%), 2016

Table 17: Areas for Improvement by Region (%), 2016

Table 18: Areas for Improvement by Company Revenue (%), 2016

List of Figures

Figure 1: Total Number of Operating Mines by Respondent Countries, 2016

Figure 2: Total Operating Mines by Commodity in Key Countries in Africa, 2016

Figure 3: Main OEMs by Share of Mines Surveyed in Africa (%), 2016

Figure 4: Leading Suppliers by Share of Respondents – Underground Equipment (%), 2016

Figure 5: Leading Suppliers by Share of Respondents – Surface Equipment (%), 2016

Figure 6: Choice of Main OEMs Across Top Countries (%), 2016

Figure 7: Choice of Main OEMs Across Top Commodity Sectors (%), 2016

Figure 8: Importance of Factors When Choosing a New Supplier (%), 2016

Figure 9: Importance of Factors When Choosing a New Supplier by Country (%), 2016

Figure 10: Importance of Factors When Choosing a New Supplier by Region (%), 2016

Figure 11: Importance of Factors When Choosing a New Supplier by OEM (%), 2016

Figure 12: Key Considerations When Choosing a New Supplier (%), 2016

Figure 13: Areas Where Main Suppliers Differentiated Themselves from their Competitors (%), 2016

Figure 14: Differentiation by Country (%), 2016

Figure 15: Differentiation by Main OEM (%), 2016

Figure 16: Average Satisfaction Ratings of Main OEM, 2016

Figure 17: Comparison of Satisfaction, 2014 versus 2016

Figure 18: Average Satisfaction Ratings by Country, 2016

Figure 19: Average Satisfaction Ratings by Commodity, 2016

Figure 20: Average Satisfaction Ratings by Company Revenue, 2016

Figure 21: Average Satisfaction Ratings by Mine Size, 2016

Figure 22: Average Satisfaction Ratings by Main OEM, 2016

Figure 23: Caterpillar – Respondent Breakdown (%), 2016

Figure 24: Caterpillar Satisfaction Versus Overall Ratings (%), 2016

Figure 25: Sandvik – Respondent Breakdown (%), 2016

Figure 26: Sandvik Satisfaction Versus Overall Ratings (%), 2016

Figure 27: Komatsu – Respondent Breakdown (%), 2016

Figure 28: Komatsu Satisfaction Versus Overall Ratings (%), 2016

Figure 29: Atlas Copco – Respondent Breakdown (%), 2016

Figure 30: Atlas Copco Satisfaction Versus Overall Ratings (%), 2016

Figure 31: OEMs to Remain as the Main Supplier for the Next Five Years (%), 2016

Figure 32: Median Lifespan for Equipment in Africa (Years), 2016

Figure 33: Median Lifespan Expectations by Country (Years), 2016

Figure 34: Areas for Improvement for Equipment Suppliers, 2016

Figure 35: Areas for Improvement – Q3 2014 versus Q1 2016 (%)

Figure 36: Areas for Improvement by Main OEM (%), 2016

Figure 37: Areas for Improvement by Region (%), 2016

Figure 38: Areas for Improvement by Company Revenue (%), 2016

Figure 39: Share of Respondents by Country (%), 2016

Figure 40: Share of Respondents by Mine Type (%), 2016

Figure 41: Share of Respondents by Commodity (%), 2016

Figure 42: African Mines by Company Revenue (%), 2016

Figure 43: African Mines by Mine Size (%), 2016

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