This is achieved by establishing end-to-end control of the supply chain processes to reduce variability. Variability is detrimental as it causes losses whether through stock‐outs, poor capacity utilization, or costly buffers as examples.
The average band of variation across key indicators has been reasonably stable over many decades. While there were isolated shocks, global supply chains have tended to revert back to stability fairly quickly.
It is this stability that has led us to design the supply chains that we have today – many of which are built on the premise of the low price of a single commodity.
The price of highly efficient, low-cost supply chains is their loss of resilience and breakdown in crisis.
The current breakdown of the supply chains is triggered by multiple factors, such as accidents, weather events, and geopolitical decisions (lock-downs, sanctions, etc.). Uncertainty has increased explosively since 2020. The tight networks are being lost as profit margins evaporate, agents go out of business or are no longer able to participate.
What is left is in need of reorganization and provides fertile ground for new combinations to create viable critical minerals value chain solutions. The essential requirement is to recognize that this challenging environment provides a rare opportunity to foster novelty and experiment for increased productivity and resilience in providing us with the critical minerals we need.
On-shoring, vertical integration and strengthening supplier networks are some of the solutions contemplated but often fail to include the development of the critical minerals as part of the bigger solution. This is the gap that CRIMSONS is seeking to close. With its deep expertise in the mining sector and industrial processes, CRIMSONS provides a communication platform for critical minerals strategies and on-shoring solutions to industrial planning, financing, and public policy challenges.
Copyright © 2024 Crimsons - All Rights Reserved.
Committed to the public interest.