ELKO - In an effort to centralize its warehousing to better control costs and inventory, Newmont Mining Corp. and CAT Logistics are less than two months away from opening a massive operation in Elko in the shadow of Interstate 80 on the east end of Elko.
Known as Shared Services Distribution and Warehousing System, the operation will be led by Ward Neuenswander, the facility manager for CAT Logistics and Juan Gavidia, Newmont's supply chain manager.
Both companies will share office space and CAT Logistics will hire 34 “associates” who will unload materials, stock them in specific locations within the warehouse and load them on outgoing trucks that will supply Newmont's various mines.
The operation is state-of-the-art in terms of tracking material. It has to be, said Newmont's Gavidia, due to the sheer number of items. "We'll carry 28,600 parts," he said, ranging from equipment to parts that go on that equipment.
Most materials will come from the local region, and the trucks that transport them can easily access I-80 to and from the warehouse.
This in turn, said Neuenswander, will prevent heavy truck traffic through the city, particularly on Idaho Street since trucks will drive east on the recently extended Ruby Vista Drive to Paradise Road at the bottom of Kittridge Canyon.
A high-tech security system, including cameras with DVR capabilities, will protect the company from would-be thieves - from without and within.
The 6,000 square foot office space includes two conference rooms, one for Newmont and one for CAT Logistics, that feature pull down screens for video presentations and a whiteboard for smaller meetings.
Everything is split down the middle in terms of the number of offices, three each, and 16 cubicles for administrative staff.
The fenced yard is paved in concrete, which will help when transporting heavy goods in foul weather.
The lighting system is triggered by movement, so if a certain part of the warehouse is inactive, they turn off. When someone enters the area they come on - an energy- and cost-saving feature.
Employees who work in the warehouse will enjoy many comforts not seen in most operations. The forklift used outdoors has an enclosed cab and the operator can use a remote control door opener so he or she won't have to leave the warmth of the vehicle to enter the building.
An elevator is used to move materials down from or up to the mezzanine, saving workers the trouble of walking up or down stairs - a feature that enhances safety.
What isn't stored outside or in the bins is kept in 32,000 square feet of rack space. Employees will be trained to operate a variety of forklifts. They will be provided pull orders each day.
The materials will be staged near specific loading bays. The same procedure will be used on the receiving end, making inventory control - which includes bar codes for tracking - much easier.
A fairly significant aspect of the business is dedicated to emergency orders, meaning a part can be requested from any Newmont mine and be there within a few hours at most. Three Ford F-350 pickups will be used for such deliveries.
"Our primary responsibility is to deliver," said Neuenswander. In order to do so safely and effectively, he said employees will be put through a “robust” training program ranging from safe lifting protocols to forklift operations and maintenance.
Ironically, CAT Logistics will not handle Caterpillar equipment. That operation is attached to the warehouse, but is completely separate, said Neuenswander, adding Cashman Equipment will man the secondary warehouse.
From Newmont's perspective, the partnership is a no brainer. Gavidia in an earlier interview with the Free Press said the central warehousing will provide a number of benefits to the company.
Production, he said, will be maximized and mines will "keep running." Working capital will be reduced, stocking locations - which are numerous and spread across vast geographic distances - will be centralized, helping the company address its “One Nevada” philosophy designed to operate all mines with the same functionality.
Most important, Newmont can focus on its core business and let CAT Logistics handle the shipping and receiving end.
CAT Logistics has the experience to do just that. The company has 107 similar facilities spread across six continents. It has operations in 23 countries and its 12,000 employees ship materials to more than 190 countries.
An unofficial grand opening will be held during the Elko Mining Expo in early June. The facility will begin operations June 16.