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Albany, NY -- (SBWire) -- 04/23/2015 --Synopsis

This report provides a detailed analysis of customer preferences throughout the European and Former Soviet Union mining sector, focusing on the factors that influence purchasing decisions and the performance of major equipment suppliers. The analysis is based on Timetric's extensive survey of 100 mine managers and procurement managers.
Areas of analysis include:

Customer priorities when buying mining equipment, with ratings of the importance of 18 separate factors, and the satisfaction ratings on 16 factors, for customers when choosing mining equipment, including cost factors, supplier attributes and product attributes.

Ratings of existing suppliers across the same factors, identifying best-performing suppliers and how well suppliers performed versus the importance of each factor.

In-depth analysis of the major suppliers, namely Caterpillar, Atlas Copco, and Sandvik, including their overall performance ratings, and their ratings for each factor relative to its importance.

Rankings of the leading suppliers for each equipment type, with respondents indicating who they viewed as the top suppliers throughout Europe and the former Soviet Union for trucks, excavators, loaders, shovels, dozers, drills, continuous miners, engines, tyres, pumps and mining software.

Insight into the likelihood of switching supplier and key action points for suppliers for product and service improvements required.

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Executive summary

Overall trends in the data revealed:

Customer priorities in supplier selection are product quality and availability of parts

Suppliers perform well, but have lower levels of satisfaction in key areas

Caterpillar received the highest average satisfaction ratings in nine of the 16 factors, and was considered the leading supplier for most categories of mining equipment

Account managers make a significant impact in the selection process, alongside suppliers' ability to deliver on time

Customers in Europe and the former Soviet Union are happy with their current supplier but almost one-third are open to change in the medium term

Product quality and reliability was the stand out area identified for improvement

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Scope

The report is based on responses from a survey of 100 senior managers at operating European and former Soviet Union mines, responsible for the purchase of equipment for plant and mine operations, along with its consumables. Survey respondents came from 23 different countries including: Russia, Sweden, Kazakhstan, Turkey, United Kingdom, Finland, Spain and Ukraine. This included five different commodity groups and a range of surface and underground mining operations.

Reasons to buy

Identify key areas for differentiation by understanding what factors most influence choice of supplier

Target product and service improvement areas based on where mining equipment suppliers are currently underperforming relative to customer expectations

Develop successful sales and marketing strategies through an understanding of the leading competitors and their strengths and weaknesses.

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Key highlights

When choosing an equipment supplier, respondents rate 'Product quality/reliability' and the 'Availability of replacement parts' as most important, with 60% and 29% of respondents, respectively, indicating a need for improvement in those two areas.

Overall the major suppliers such as Caterpillar, Atlas Copco and Sandvik perform well in terms of customer satisfaction.

While suppliers' abilities to deliver on time set them apart during the selection process, account managers make a significant impact as the respondents cited 'Demonstrated product was superior', 'Better understanding of your needs' and 'Better timing of contact' as key differentiating factors when choosing their current main supplier.

The three leading areas for improvement identified by respondents were 'product quality and reliability', 'ability to support cost reduction', and 'after sales service

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