Logistics and Supply Chain Activities for Newcrest Mining Limited

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of Student:
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Author’s Note:

1SUPPLY CHAIN MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Background information of the chosen company............................................................................3
Discussing the nature of business................................................................................................3
Types of product..........................................................................................................................4
Major customers of Newcrest Mining.........................................................................................4
Discussion on employees.............................................................................................................4
Management style........................................................................................................................5
Organizational structure...............................................................................................................5
Financial position.........................................................................................................................6
Number and types of facilities...................................................................................................13
Discussion on the supply chain structure of the chosen company.................................................14
Distribution chain map..............................................................................................................14
Contract......................................................................................................................................15
Discussion on sourcing of materials and services, producing goods/services...............................16
Discussing the existing system..................................................................................................16
Suggesting improvement...........................................................................................................16
Discussing the demand management and inventory system involved...........................................17
Existing system..........................................................................................................................17
Suggesting improvement...........................................................................................................17
Conclusion.....................................................................................................................................17
References......................................................................................................................................19

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Introduction
The discourse of the study aims to develop a vivid understanding of the logistics and
supply chain activities for “Newcrest Mining Limited”. The background information of the
company will include the discussion of its business nature, type of products, major customers,
number of employees, management style, organizational structure, financial position and types of
facilities. The next section of the study will include the supply-chain structure for “Newcrest
Mining Limited” which will be able to demonstrate the map for its distribution chain. The third
section of the discourse will include discussion on the sourcing materials, services and producing
goods. The subsections will comprise of the discussion on the existing system and suggest
improvement at the same time. The various types of demonic management and inventory
management system will evaluate the existing inventory system involved and suggest
improvement accordingly.
Background information of the chosen company
Discussing the nature of business
Newcrest headquartered in Melbourne considered as the largest gold producer which is
listed on the: Australian Securities Exchange” and one of the “world's largest gold mining
companies”. The main mission of the company to deliver superior returns from findings,
operations and developing of gold/copper mines. The company owns its portfolio of
predominantly low-cost, long life mines along with a strong pipeline of “brownfield and
greenfield exploration projects”. The reserve and the resources are considerably strong with
more than 25 years of production experience at current rates. The asset portfolio of the company
uses a variety of efficient method of mining for the large ore bodies, selected together with
various types of underground mining methods for optimizing of high-grade epithermal deposits.
The mines are mostly located in “Australia, Papua New Guinea (PNG), Indonesia, and Côte
d’Ivoire”. The present operations of the company include “Cadia Valley Operations (New South
Wales, Australia)”, “Telfer (Western Australia)”, “Gosowong (Halmahera Island, Indonesia)”,
“Lihir (New Ireland Province, PNG)” and “Bonikro (Côte d’Ivoire)”. The discovery of the new
ore bodies is identified as the most significant aspect of Newcrest’s strategy. In addition to this,
the company has been successful in maintaining a strong and successful exploration track record.

3SUPPLY CHAIN MANAGEMENT
The key objective of the exploration strategy includes, securing large mineral districts/provinces
for establishing the scope for future operations and enhancing the future discoveries.
Types of product
The company’s main produce includes gold and copper in Australia situated at the
“Ridgeway (Cadia Valley Operations)”. It has been further discerned that the second most
important Australia operation is considered with “Telfer Mine in the Pilbara region of Western
Australia”. Some of the other production zones include two mines situated in “Papua New
Guinea, Lihir and Hidden Valley” and one each in “Ivory Coast (Bonikro) and Indonesia
(Gosowong)”. Based on the financial statement published in 2017, the total mine production is
depicted to be 18853 thousand tonnes in Cadia, Located in central west “New South Wales,
Australia”. Some of the other significant quantities of production is observed with Lihir Located
on the island of Niolam with a total mine production of 30069 thousand tonnes. Furthermore,
Telfer gold-copper mine located in the “Great Sandy Desert in Western Australia” has a total
mine production of 34144 thousand tonnes.
Major customers of Newcrest Mining
The main revenue from the contracts is depicted to be arising from contracts with the
customers. The main customers of the company have been identified with major companies
require copper for construction works. In addition to this, the electronics making companies in
Australia such as ASKO, Electrolux and Fisher & Paykel how considered are some of the most
significant customers of Newcrest. Some the various types of other customer profile include
Australia Pacific electric cables. In addition to this some of the other cable companies such as
Bambach Wires & Cables, Tycab Australia, NAN cables and Nexans Olex are some of the most
significant customers of Newcrest for buying copper and refurbishing it to their cables.
Customers of gold production is recognized with companies such as Shiels Jewellers, Michael
Hill Colonnades, Tiffany & Co., Zamels Jewellery Australia and Wallace Bishop Jewellers
(Newcrest.com.au, 2018).
Discussion on employees
As per the report published by Forbes Global 2000 List Newcrest Mining Limited is
recognized with a total market capital of $ 14 Billion and an employee strength of 1,544
employees. It has been discerned that during the financial year 2017 Newcrest introduced new