MARC Contract Insourcing

July 21, 2021

Bluefield AMS  assisted a client to bring their maintenance in-house, building internal expertise, managing risks, and saving millions of dollars each year.

 

Problem

  • Our client, an open cut iron ore miner was searching for cost savings in an extremely tough market environment.
  • They identified that insourcing from a MARC based maintenance contract could a major cost-saving initiative.
  • A key complication was a lack of mobile equipment maintenance expertise within their business.

 

Solution

  • Bluefield assisted the client to identify key risk areas and risk management actions for the project.
  • We worked with the site team to create an insource strategy to reach targeted owner-based maintenance organizations and cost savings.
  • Bluefield also identified and delivered other potential areas of further cost savings, including spares component management.

 

The Results

The client implemented the strategy, and the resulting owner-based organization realized annual cost savings in millions of dollars.

This improvement was one of the key initiatives that maintained the business cost position in a market with falling iron ore prices.

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