Exploring digital transformation for improved operational efficiency between mine dispatch and road logistics processes in the SA mining sector

Abstract

This research explored how digital transformation can enhance operational efficiency between South African mines and road transporters, with a particular focus on the dispatch processes. The South African mining sector is characterised by labour-intensive, complex operations and a highly interconnected value chain comprising of numerous stakeholders and functional activities. While core mining activities often receive strategic attention, supporting functions such as dispatch and logistics, are frequently undervalued, despite playing a crucial role in ensuring end-to-end value chain efficiency as well as market responsiveness. The success of any business offering products rests on its ability to meet customer requirements timeously and on ensuring that the right kind of product is dispatched and delivered. This study expands on the concept of operational efficiency within the mine-road logistics process in the South African mining industry. To fully understand this particular process, it was important to understand the mines’ pit-to-port process, which looks at the entire value chain, from blasting to processing minerals all the way to the point of delivery, either to domestic customers or to the ports for export. The study aimed to assess the current operational inefficiencies and digital maturity levels between the mines and road transporters, as well as to identify the best practices and digital solutions that can optimise this interface. A qualitative methodology was adopted, incorporating semi-structured interviews and desktop research across three mining sectors: coal, chrome, and manganese. The interview questions were structured in such a way that the data collected from the respondents would be comprehensive enough to adequately address the research objectives. The questions were broken down into several subsections focusing on the respondents’ roles and responsibilities within the mine-road logistics process, the current operational process, expanding on operational efficiency as a concept and within the study context, understanding digital maturity and digital transformation as well as its impact on respective organisations. ii The findings revealed process fragmentation, manual communication methods, poor system integration, lack of standardised processes, and a siloed approach to digitalisation as the key barriers to efficiency. However, existing digital touchpoints such as weighbridge software, load-cell technologies, and limited fleet tracking indicate a foundation on which more integrated, real-time solutions can be built. The study recommends implementing centralised logistics platforms, predictive maintenance systems and integrated communication tools, as well as process automation solutions aligned with a clear digital transformation strategy. The recommendations gathered through the literature review and data collection through interviews emphasise system integration as a key driver to successful digital transformation within the South African mine-road transporter logistics process. By highlighting these challenges and opportunities, this research contributes to a broader understanding of how digital technologies can improve coordination, visibility, and value delivery in South Africa’s mining logistics ecosystem. This research study also highlights the importance of process mapping as a means to identify gaps, bottlenecks and non-value adding activities and as a basis for identifying fit-for-purpose digital solutions.