Logistics and Supply Chain Management Efficiency Strategy for Ghana’s Mining Industry

Abstract

The invaluable contribution of the mining industry in any country’s economy is widely acclaimed and thus not far-fetched. In as much as the mining industry contributes hugely to economic and social growth, its operations are characterized by complex supply chain processes that are relatively capital and cost intensive, and technologically sophisticated to manage. Unfortunately, firms in the mining industry especially for developing countries tend to focus more on procuring modernized equipment and technologies to carry out the complex processes of mining operations to the detriment of applying logistics optimization models.
 This research project therefore seeks to analyze the logistics and supply chain operations of mining companies in Ghana, identify the challenges and inefficiencies associated with these operations and their underlying causes, and recommend logistics and supply chain management design, modelling and analysis tools to optimize. With the help of secondary data collected from books, journals, which were further depicted in graphs and tables, the Microsoft Excel Solvers for Vehicle Routing Problem (VRP, Version 3.42), with an embedded Bing Map Key License was used to illustrate and derive optimal solutions for the transportation efficiency of mining firms in Ghana.
 The study revealed that the mining industry in Ghana is confronted with supply chain issues like poor road networks in mining communities, variable lead time and exchange rate, strict governmental laws, violent clashes over land royalties, high transport cost due to bad roads, unreliable lead times (caused by port delays), unavailability of local suppliers of international standards, and policy restrictions as the main challenges to supply chain. Clearly, the policy implication emanating from this study is that mining firms in partnership with transport services firms in Ghana must adopt an efficient service delivery and optimal transportation cost reduction strategies, which is designed with the Vehicle Routing Problem Optimization Model in order to benefit mutually in gaining competitive advantage.