03 · Strategy

Katu Consulting.

Procurement strategy design, category management and OEM vs. alternative analysis to cut structural costs. Real leadership from teams that have run major mining operations in Latin America.

+15 years
Experience in
mining procurement
$1B+
USD in portfolios
managed
15–25%
Savings with
LCC alternatives

OEM vs. Alternatives benchmark · Hydraulic cylinder

SAF/LCC
Original OEM (Cat)
📍 Imported⏱ 60 days★ Spec ref.
$4,200 USD
National alternative (approved workshop)
📍 Santiago⏱ 30 days★ 4.6
$3,100 USD
LCC China (SAF approved)
📍 Shanghai⏱ 45 days★ 4.7
$2,800 USD
Savings vs. OEM with approved LCC
−33%

Strategy that captures real savings.

More than 15 years leading US$1B+ portfolios across major Latin American mining. We know what OEMs evaluate and how to build a negotiating position with data.

01

Category Management

We segment spend by category, identify tail spend, and design strategies to negotiate from a position of strength. Every category with an actionable plan.

  • Spend Pareto — uncover your invisible tail spend.
  • Category strategy — buy, partner or insource.
  • 12-24 month roadmap with quick wins and milestones.
📊 Spend segmentation · Top categories $48M annual
Strategic
Major OEM spare parts
$18M · Long-term alliance
Bottleneck
Specific components
$8.4M · Develop alternatives
Leverage
Wear & consumables
$15M · Competitive tender
Routine
PPE, cleaning, office
$6.6M · Catalog + self-service
💡 Quick win: 38% of spend sits in the "leverage" quadrant without competitive tender → 12% potential immediate savings.
02

Strategic contract design

Regional agreements between mining groups, stockless and VMI models, prorated contracts and extended warranties. We design every clause aligned to your operational and financial KPIs.

  • Regional agreements with shared economies of scale.
  • VMI/Stockless models that free up working capital.
  • SLAs and penalties aligned to actual production.
📜 Master contract · Centrifugal pumps 36 months
$
Volume-tiered pricing
−5% >500u · −12% >1,500u · −18% >3,000u
14-day delivery SLA or penalty
−2% per day of delay · cap 15%
🛡
24-month extended warranty
Replacement or repair + spare parts
📦
Stockless · supplier-held stock
Capital released: $1.4M USD annual
03

OEM vs. Alternatives benchmark

Exhaustive technical-economic analysis comparing original manufacturers with local and LCC alternative suppliers (China, India). Every benchmark backed by a quantified business case.

  • Comparative analysis — technical, economic and risk.
  • Controlled pilots with performance metrics.
  • Business case with 5-year TCO.
⚖ TCO benchmark · Hydraulic filters 5 years 3 scenarios
OEM Caterpillar $2.4M USD
Risk: low · Lead time: 28d · Availability: medium
Parker alternative (USA) $1.85M USD (−23%)
Risk: low · Lead time: 21d · Quality: equivalent
LCC China (approved) $1.39M USD (−42%)
Risk: medium · Lead time: 45d · Safety stock +20%
Recommendation: Mixed strategy 70% Parker / 30% LCC = $1.66M (−31%) with controlled risk.
04

SAF/LCC methodology

We model total cost of ownership including price, operation, maintenance and disposal. We define optimal inventory levels and design tiered discount structures.

  • 5-year TCO including inventory carrying cost.
  • Optimal stock levels per SKU using EOQ + ROP.
  • Tiered structures that reward volume commitments.
🧮 SAF/LCC model · Component XYZ-200 5-year horizon
Acquisition price 52% · $1.04M
Operating cost 22% · $440K
Maintenance & repair 14% · $280K
Inventory carrying cost 8% · $160K
Disposal / end of life 4% · $80K
Total 5-year TCO $2.0M
05

LCC alliance development

We connect your organization with global manufacturers in low-cost markets. We run the technical approval process and design controlled pilots with local partners to mitigate risk.

  • Manufacturer network verified in China, India, Turkey.
  • Technical approval with standard testing protocol.
  • Hybrid schemes LCC + local service partner.
🌏 LCC manufacturing network · Active 28 manufacturers
🇨🇳 China
14
approved manufacturers
−35 to −48% vs OEM
🇮🇳 India
9
approved manufacturers
−28 to −40% vs OEM
🇹🇷 Turkey
3
steel & structural
−25% vs Europe
🇧🇷 Brazil
2
consumables & mining
No LATAM tariffs
06

Stockless & VMI contracts

We design models that eliminate capital trapped in the warehouse. Consignment, Vendor Managed Inventory and on-demand supply with replenishment SLA — the supplier holds the stock for you.

  • Consignment — pay when you consume, not when you receive.
  • VMI with SLA for automatic replenishment.
  • Pure stockless with on-demand delivery 24-48h.
📦 VMI program · Wear category $1.4M released
❌ Before · own stock
📦 Warehouse stock: $1.8M
💰 Carrying cost: 11% = $198K/year
⏱ Inventory days: 87
⚠ Stockouts: 14 per year
✓ With Katu VMI
📦 Supplier stock: $400K
💰 Financial savings: $154K/year
⏱ Inventory days: 18
✓ Stockouts: 0 (replenishment SLA)
Capital released in 12 months $1.4M

Buy better.
Power up your market.

The ecosystem that major mining has been waiting for. Competitive procurement, reliable data, capital in motion and connected local suppliers — all in one place.

"What used to take a week of emails and spreadsheets, the system now closes in 48 hours. My team focuses on category, not on operations."

JM
Juan Martínez
Procurement Manager

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