1. Industrial Mineral Transportation and Marketing (Part 2)
James M. Barker
Bureau of Geology and Mineral Resources
A Division of New Mexico Tech
801 Leroy Place
Socorro, NM USA

2. Key Concepts The Marketing Concept Just-in time Delivery
Quality Retention
Proactivity
Expertise at all levels
Global Customer Service

3. Industrial Mineral Export Competition
Competitors near your distant market
Pricing pressure
Substitutes
Political and cultural differences
Communication problems
Currency fluctuations
Trade finance restrictions
Transport imbalances

4. The Marketing Concept Used by some at least since the 1950’s
Opposite of the technical approach
Engineers develop product
Sales force then convinces customers to buy
Uses the people-oriented approach
Sales force determines customer needs
Engineers design product (with enhancements)
Know customers, customer’s customers, and competition, plus all market factors

5. Transportation and The Marketing Concept
Transport dominates IM delivered cost
Customers respond to lowered cost
Large transport costs often easier to lower
Market location
Transport mode or intermodal
Contract type and negotiator
Quality of service companies used
Customer Service
Quality retention
Just-in-time delivery
Proactivity

6. Transport modes Modes = Truck<Rail<Barge<Ship
Containers ± Intermodal
Stay on top of the transport market
Transport market changes daily
Operates 24/7
Think “outside the box”
Hire a transport manager
Periodic reevaluation of delivery chain
Tie customer service closely to transport process

7. Transport Contracts Very complex area Risk is involved
Rail, barge and ship contracts are tricky
Use expert contract negotiators = brokers
Understanding contract terminology can be crucial to success or failure
Remember to focus transport contracts on customer needs as much as possible

8. Quality of Transport Service Companies
Product handled many times during transport
Long distance transport rarely all in-house
Thus need brokers, traders, stevedores, service companies, etc.
Value added, integrated, quality conscious
Use highest quality/expertise at all stages
Ensure greatest possible edge over better placed competitors

9. Transport Delivery Location
For global market, transport can be very far
Long distances = greater potential problems
Intermodal
Multiple handling
Delays of various kinds
Communication problems
Some locales easier to serve than others
Extra effort in difficult area can yield spectacular success to service-starved customers

10. Global Customer Service
Global Customer Service is large undertaking
Tracking all aspects at a distance is tough
Need real-time data to rectify problems early
Better that you solve a problem than have
the customer ask “what happened” and you
must ask the same question
Be proactive, not reactive, at all stages of industrial mineral delivery chain

11. GCS continued
Global trade is based on relationships, and is not entirely price driven
Use local experts to limit cultural gaffes
Typical problems
Wrong product
Transport delays and demurrage
Government export-import interactions
Quality damage
Be there when the customer needs you

12. Summary Determine customer needs
Meet these needs with a concerted and ongoing company-wide commitment
Maintain quality and control at every stage of industrial mineral delivery chain
Win customers around the globe through superior, proactive service at a distance