Benefits of ERP Software to Maximize Profits and Reduce Costs in the Mining Industry

Implementing ERP software in mining companies can provide benefits in increasing transparency and data integration. This is because mining companies generally have separate systems for managing data.

With this complex process, of course managing a mining company requires tools that help simplify operational and managerial processes. This certainly needs to be done in order to maximize profits and reduce unnecessary costs.

One of the software that is widely used is ERP software. Using this device greatly facilitates the operational processes of the mining industry. So, it is not surprising that more and more mining companies are using it.

If you are still unsure about using ERP software for your mining company, try reading the following Anugrah Prima System article!

In this article, you will find out what benefits you can get from implementing ERP for mining businesses.

The Role of Mining Companies in the Country's Economy

The mining industry is an industry that has a large role in the national and regional economy. This cannot be separated from the natural wealth that Indonesia has. At least, there are 17 mining industry items in Indonesia. These items include gold, coal, iron ore, tin, asphalt and nickel.

Every line of life of the Indonesian people is indirectly influenced by the mining sector and its derivative industries. In fact, this industry also contributes quite a lot of employment opportunities.

Not only that, the mining industry also brings in various investors who invest capital in Indonesia to process natural resources in order to meet export demand. We can see the impact in several mining areas that are experiencing economic growth.

For example, South Kalimantan is the largest coal contributor in Indonesia. The region's economy grows from export sales of coal and iron ore.

It turns out that many mining companies have contributed greatly to the Indonesian government. Based on data from the Ministry of Energy and Mineral Resources quoted from Republika, as of November 2018 alone, the Non-Tax State Revenue from the mineral and coal sector had reached IDR 41.77 trillion.

Manfaat Perusahaan Tambang Menggunakan Software ERP

The development of the mining industry in Indonesia certainly needs to be supported by the right technology. Regarding operational management of mining companies, the technology that can be used is ERP software.

The presence of ERP software can simplify the complex operational processes of mining companies. By implementing this software, mining industry operational processes can be made simpler, integrated and automated.

1. Helps with more efficient project and resource allocation

Project management and work allocation are important aspects that determine the smooth running of the mining process. However, projects and resources spread across multiple locations are not always well monitored.

So, with the implementation of ERP, companies can monitor each project's progress easily. The project managerial department can easily find out which work has not been distributed to the work site. This allows for more focused resource allocation and more focused work processes.

2. Transportation and Logistics Efficiency

It cannot be denied that transportation and logistics play a big role in the smooth running of the project. The use of ERP software can also be used to ensure smooth transportation and logistics processes.

ERP software has various features for transportation and logistics management. Starting from driver management, load capacity management, ordering, and many others.

Apart from that, companies can also use an asset management system to find out transportation conditions through ERP software. This will make it easier for you to schedule routine maintenance and record all transactions related to transportation maintenance.

3. Manage Company Assets More Effectively

Mining company operations require various equipment that must be managed properly. If it is damaged, this will hamper mining projects. Therefore, companies need to use the asset management module in ERP software to help manage assets automatically and in an integrated manner.

The mining ERP system helps in maintaining all assets so that they are carried out on a scheduled and automatic basis. Additionally, asset managers can carry out inspections easily because there is a centralized database. Distributed assets can also be easily tracked and measured, for example how long they can be used and how much profit they might generate.

4. Employee Evaluation and Payroll Management Becomes Easier

Company employees are spread across various locations making performance monitoring difficult. Not only that, managing the salaries of distributed field employees is also not easy.

Why is that? This is because mining employees' salaries are definitely different from employees in general. Mining employee payroll may be based on hours or days, attendance, or achievements. Of course, implementing payroll will require good performance monitoring.

With the help of mining ERP software, companies can pay more comprehensive attention to the performance of each worker and analyze it easily through analytical reports.

Apart from that, companies can easily monitor the performance of project schedules that have previously been planned in the ERP software.

5. Company finances are better maintained and controlled

Making company finances more secure and controlled is the most important benefit of using ERP applications in mining companies. This is because ERP is equipped with an Accounting module which allows companies to predict incoming and outgoing money with high accuracy.

Not only that, this system also helps in creating financial reports that are more detailed and easy to understand. This will be useful when the company carries out the audit process.

Conclusion

Mining companies are one of the industries that generate high foreign exchange for the country's economy. This is because of high demand from various other countries, considering that mines such as coal are very necessary for generating electricity.

However, the operations of mining companies themselves are different from companies in general because they involve a lot of heavy equipment and long processes. Therefore, manual methods can no longer be applied to help mining industry operations run more simply and effectively.

Here, mining companies need the latest technology systems such as ERP software. Using ERP software can help reduce operational costs, cut administrative management time, increase productivity, and help with optimal use of resources.

"Your mining company needs a solution to increase operational and managerial efficiency? With ERP software, you can integrate separate systems and data, speed up business processes, maximize profits and reduce unnecessary costs. Contact us now "CLICK HERE" to further consultation and get the best solution for your mining business."

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