In early 2021, Boart Longyear established a new Distribution Center in the Hermosillo area of northern Mexico specifically for drilling tools and spare parts.

High demand for these products and long lead times were the main motivations for opening this Distribution Center. Locating stock closer to the customer operations has proved a key competitive advantage that has significantly influenced purchase decisions, especially when it came to production drilling operations.

This was the case in Hermosillo. As Marcelo Hinojosa, Boart Longyear Sales Director for Mexico, tells us, “The main Boart Longyear warehouse is located in Zacatecas, in the center of the country. Although it's an important mining area and a strategic geographic point for merchandise distribution, it did not allow us to meet required delivery times in Hermosillo.”

This new Distribution Center has more than 500m2 (5382 square feet) capacity designed to store high-demand exploration tools, such as coring rods, diamond products, and in-hole tools; in addition to production rock tools, spare parts, and upgrade kits for Boart Longyear equipment.

The Decision

Being close to customer operations has allowed us to understand the unique challenges of each mine. This was a key factor when we decided to invest in this region. “We had been awarded a significant rock tools supply contract for an important gold and silver mine in Hermosillo and we could not carry it out without a local Distribution Center, Marcelo says, who adds “then, the experience of our sales engineers and the deep knowledge of customer’s businesses, enabled us to effectively plan the consumables and spare parts inventory the market regularly requires in the area”.

Advantages and benefits

A supplier’s location and agility are crucial to a successful drilling program. Inclusion in the mine planning is a critical factor to meeting the production goals, especially when it comes to stock and lead times. This relationship makes the difference. “Having this new warehouse so close to the customer sites has increased our sales since we have reduced our delivery timing. The facility also makes us more competitive by being able to offer fast delivery, without fees for Hermosillo customers”, indicates Marcelo.

In addition, being closer to Boart Longyear’s manufacturing plants in the United States and Canada enables us to deliver the level of service that a world-class supply chain allows. This connection is a huge competitive advantage and a significant benefit to mines and contractors in Hermosillo.

Expectations

The Boart Longyear DC in Hermosillo allows our team to deliver the highest-level products at the speed customers require to meet their challenges day-to-day.

“This Distribution Center has significantly increased our market share, both in exploration and production tooling and we expect to continue growing. We easily met our order intake and invoicing targets for 2021, and we think that we are in a great position for 2022”, concludes Marcelo.

The Boart Longyear Hermosillo distribution center brings the experience of more than a century of delivering productivity solutions, optimized for drilling performance.