A world-class battery minerals processing plant in remote Australia to meet the demands of the battery revolution requires a significant number and volume of critical reagents to process the mined ore through to finished saleable products. Our client’s proposed facility would require a complex intermodal logistics system that joins multiple countries via ships, ports, rail and road infrastructure and assets.

A gulf was starting to emerge. A high-level supply chain design with several exposed assumptions needed to fast become a detailed and fully-costed design for an intermodal logistics system. It was also a race against time, given the project was fast progressing towards the next phase.

Our client had undertaken prior work to establish a high-level supply chain design. On the surface, the high-level concept worked. Digging down to a deeper level exposed several assumptions that needed to be adjusted. Adjusting these assumptions altered the entire supply chain design. The complexity of the required supply chain made it impossible to predict the impact that a change to any one assumption would have on the overall supply chain performance. And the client’s team were torn between several supply routes available to connect reagent suppliers and downstream customers to the battery minerals facility. There just wasn’t enough information available.

Our client turned to us to lead the execution of a supply chain options study. The study needed to provide an updated set of assumptions and basis of design for the intermodal logistics system. We were also tasked with establishing an updated annual logistics operating budget for inclusion in the client’s Project Execution Plan. The brief from the client was simple: the supply chain design should be safe, reliable and efficient.

The situation required all logistics assumptions to be reviewed and updated. An assessment of various intermodal options was also required. A final decision would then need to be made to select one preferred option. With very little existing information, we would need to travel to various locations around Australia to gain knowledge and insights before we could effectively evaluate options.

As a starting point, we established a working group of logistics vendors who were willing to contribute and share their SME knowledge to help us to clarify our assumptions and quickly narrow our list of available supply routes. We invited our client’s functional area leaders to join the working group to ensure that any interface issues with other project teams would be managed quickly and effectively. We were rapidly starting to align the organisation and create the positive momentum required to establish a basis of design or the intermodal logistics system.

We then spent weeks in the field assessing the feasibility of various supply routes. We visited three ports across two states, travelled thousands of road kilometres, flew to multiple cities and visited multiple intermodal facilities, warehouses and rail sidings. We even measured the travel time between various locations.

Next, we had to address the issue of variability. With a complex intermodal logistics system, it is difficult to simulate variability and understand the impact that altering one assumption would have on the overall supply chain. A simulation model was required. We engaged MAXOPS to take our complex set of assumptions and create an easy-to-use simulation model that would allow us to quickly understand the impact that altering any one assumption would have on the performance of the overall supply chain.

With the data from our field studies, and the freshly created simulation model to guide us, we had what we needed to develop our cost model. We again turned to our working group to develop a cost breakdown structure and began to populate the various cost components using budget quotations and estimates that we had received from various suppliers. The development of the cost model allowed us to trade-off our multiple supply route options. The most efficient option had become apparent.

The fog had lifted, and a clear picture was beginning to emerge. The study was used as a reference to update the basis of design for the intermodal logistics system in the client’s Project Execution Plan.

Throughout the study, we established a practical project management approach that kept the momentum going across multiple workstreams and provided transparency on progress to our client’s management team. When we needed technical assistance, we turned to our working group. When we hit hurdles, we escalated them quickly to our project sponsor and resolved larger issues through a fortnightly management meeting.

At Leading Edge Advisory, we take ownership for your outcomes, and we work as an embedded part of your team. Our style drives accountability and generates positive momentum and provides transparency for stakeholders across your business. We have close working relationships with industry leading experts and SMEs to help understand, define and diagnose solutions to your most complex problems. Turn to us for productivity improvements, high-powered management support and operational readiness planning and execution.