Added-Value Services Attract Operators
Because of its cyclical nature, mining operators are known to always be on the lookout for a balance between the lowest price and highest quality to mitigate financial risk. This in turn makes the supply chain highly competitive and challenging for companies wanting to stand out from the crowd. As a result, companies are now looking to generate added-value services – customer service, aftersales support and maintenance services – that can mean the difference between winning a contract and losing out to a competitor.
In response to the demands of the industry, equipment distributor Digsa raises the benchmark by bringing innovation to the industry and analyzing brands that may be less well-known but can offer better quality and prices. It also strives to ensure constant availability and added value. “We only provide these products in certain cases. Industrias Peñoles, for example, prefers products from brands it is accustomed to because this is how it mitigates risk,” says Sigifredo Dávila, Director General of Digsa. “But the early adopters of these products will be happy with the end results. We guarantee satisfaction and quality.”
Ensuring quality at an affordable price is especially important considering that KPMG recently found in its report Global Metals and Mining Outlook 2016: Making the Best of a Challenging Environment that mining companies are expected to increase their hunger for cost reductions while metal companies will continue to search for new growth opportunities. In the report, Richard Sharman, KPMG international’s Global Head of Commodity Trading, says the mining industry strives to carefully organize its capital and investments to prepare itself for the coming upcycle. “Miners need to improve the way they allocate capital to prioritize cash flow and earnings,” he says.
To provide a solution to this challenge, Digsa has incorporated a meticulous selection process when it comes to the products that are in its catalog, ensuring it always offers the highest of standards at a competitive price point. “We work with operators like Industrias Peñoles and Grupo México,” says Dávila. “Due to their might in the industry and the strength of their operations, these operators do not settle for substandard products or services.” In this context, Digsa must submit to the highest standards with zero leeway for errors.
The mining industry in Mexico is the core of Digsa’s business as the sector has many areas of opportunity for growth. Dávila joined the company six years ago and in this short time the company jumped from having 10 mining projects to over 30. No project is too big or small for Digsa, according to Dávila. “We treat all our clients with equal levels of respect and priority,” he says. “It is important for us to have a strong network of contacts that believe in our services.”
Digsa is optimistic about the rising metals prices and is benefiting immensely from the industrial turnaround. Dávila considers the company’s next step to be manufacturing. “We plan on eventually patenting our own products but it will require a considerable investment,” he says.