Abstract
The southern African mining industry has faced many trials in recent times, with decreasing profit margins due to declining commodity prices and increases in critical cost drivers (Mining Weekly, 2018; Crowley & Biesheuvel, 2017). Profits have been further affected by loss of production due to augmented mining regulations that increase the frequency of production stoppages (Mining Weekly, 2013), which cost the sector approximately R4.8 billion in 2015/16 (Lead to Business, 2016). This has placed pressure on mines to contain costs to improve or just maintain their profit margins in a depressed market (Deloitte, 2017; Frost & Sullivan, 2017). As mines concentrate on profitable production (PwC, 2017), there is an increased focus on the reliable supply of cost-effective input materials such as explosives. Cost is a large determinant in the choice of explosives, thus cost leaders are bound to have a greater market share (Crowley & Biesheuvel, 2017). The decreased profitability in the southern African mining sector, compounded by increased competition in explosives supply, has created a need for better supply reliability, cost containment, and general customer service quality to increase organisations’ competitive edge. Not only are explosives an element of the cost of production, but the timely supply of explosives has a direct impact on the production output of a mine and therefore profitability...