Digital Transformation in Metals and Mining Industry (Part 2)

In the second part of the series "Digital Transformation in Metals and Mining industry" we cover some use cases in the downstream value chain

DIGITAL TRANSFORMATION USE-CASES IN DISTRIBUTION

• Track and trace
  POSCO, one of the world’s largest steelmakers, has implemented a proprietary RFID-based logistics solution, the Smart-Works System, which uses custom UPM DogBone™ UHF RFID tags to track and trace multi-ton metal coil products from manufacturing through customer delivery.
• Direct to customer via E-commerce
  Klöckner & Co., headquartered in Duisburg, Germany, Klöckner & Co. is an independent steel producer and metal distributor with a history that runs more than 110 years. It has realized that its key assets will soon be its platform and intellectual property. Under the kloeckner.i brand, the company has set up a separate entity to drive its digital transformation and create a leading internet service platform for the entire steel industry. On one side, it is integrating its suppliers – big steel producers and start-ups in scrap metals – and, on the other side, its customers. The platform includes a contract platform to get real-time information about contracts and enable direct ordering, a web shop, a mill certificate platform, later delivery notice, and 08:05 mailing on special offers ("daily deals"). The ambition of Klöckner CEO Gisbert Ruehl is that half of all transactions go through this platform.

DIGITAL TRANSFORMATION USE-CASES IN STAKEHOLDER VALUE CREATION

• Creating a Digital Culture among its employees
  Tata Steel, an Indian iron ore and steel company with significant downstream presence and strong B2C brands, has made substantial progress in refocusing its internal culture to ensure a digital culture is enabled. As part of its plan to make the organization more aware of and better prepared for digital transformation, the company has tried to connect the younger generation of workers (aged under 30) with the older leadership team. In one of its major corporate initiatives, it created a reverse mentoring programme, in which younger employees spend time bringing upperlevel leadership up to speed about trends and technology. The programme began with a competition for the top few hundred young employees, who were then hand-picked for the scheme. It serves both to motivate these employees through exposure to strong leaders and provide an avenue for older employees to become aware of relevant digital trends
• Using Social Media to create transparency among local communities
  Teck Resources, Canada’s largest diversified mining company, Teck Resources has used digital tools to build awareness and trust around the environmental impact of its operations. By using sensors with frequent data feeds in watershed management, the company has been able to find slight variations it was unable to identify through daily sampling techniques, while simultaneously sharing hourly results on dust particles and water quality near its sites at Carmen de Andacollo, Chile, and Elk Valley, Canada. This helps the local communities understand its impact and feel safe and allows analysis and reporting by government.
• Social Media awareness generation
  Antofagasta Minerals is a Chilean mining company that searches for, produces and sells copper and other minerals. In 2015, it started to use social media networks such as LinkedIn, Facebook, Twitter, YouTube, Flickr and Instagram more proactively. This has strengthened the link between the company and its stakeholders in these increasingly relevant forums. To further build community trust through transparency, the firm actively seeks opportunities to enhance their stakeholder engagement through digital media. For example, during a recent series of sessions to resolve longstanding differences with the community of Caimanes, their subsidiary Los Pelambres brought in the Chilean chapter of Transparency International to monitor and share information, making these meeting public by providing access to videos of these sessions on their website