DISTRIBUTION SYSTEM

LEPANTO CONSOLIDATED MINING COMPANY

The owners of At present. As a publicly listed company. As a pioneering mining company. it operates the Victoria and Teresa gold deposits in Mankayan. and minerals. Benguet. It also sells copper concentrates. Benguet for 76 years since 1936. and their related by-products. gas. Makati City. - Lepanto Consolidated Mining Company engages in exploring and mining gold deposits. II. copper. zinc. metals.I. as well as oil. Lepanto’s shares are traded in the Philippine Stock Exchange under the symbols of LC and LCB. coal. Lepanto has been a proud resident of Mankayan. Its main office is located in Paseo de Roxas. Company Background Lepanto Consolidated Mining Company is a publicly-owned company providing investors with highly liquid gold products. lead. and various kinds of ores. . and explores and mines for silver. Names and Types of Offering It is a Trading Company and primarily offers Mining services.

and China. the company offers diamond drilling services primarily to mining companies. The company was founded in 1936 and is based in Makati City. - In addition. . and sells industrial diamond tools. including diamond core and non-core bits. apartments. and the construction industry. reamer shells. and sawmilling activities. distributes. casing bits. and warehouses leasing activities. and manufactures. operating resort/restaurant. - Lepanto Consolidated Mining Company sells its products primarily in the Philippines. and investment and insurance brokerage business. the Philippines. diamond circular segmental and diamond gang saws. warehousing. Canada. Benguet. and the Enargite copper project located in Mankayan. marble cutting. Peru. - Further. Hong Kong. and tubular products for the mining exploration.- The company primarily holds interest in the Victoria and Teresa gold projects. guesthouses. it is involved in hauling.

After having a thorough exploration of the area. Marketing Channels Mining Site (Raw Materials) Refinery Companies Manufacturing Comapanies Wholesalers Retailers End-user Supply Chain  MINING SITE: It is the first path in the supply chain where the raw materials come from. safe and efficient delivery To have a fast and better terms of payments To prioritize companies which are in close proximity IV. In here. the whole mining process . the mining process takes place. Marketing Channel Objectives To have a fast. the next process is the extraction of the ore body. Here.III. It starts with the exploration of the area to know if the deposits are viable to extract and profitable enough.

and Canada. After the extraction. China. Other wholesalers. The primary Refinery Companies that buy the gold from Lepanto mainly come from Hong Kong. These companies then directly sell the finished products to either wholesalers or to end users. Examples of these companies include the electronics and semiconductor companies. buy the gold for storage purposes to increase their reserves. Peru. An example of this is the Central Bank and other gold traders.  REFINERY COMPANIES: These are the major buyers of the milled ore body. .  WHOLESALERS: These wholesalers are also companies who buy the gold to use them for some of the component of their products.  MANUFACTURING COMPANIES: These are the companies that further process the gold bullions in compliance with their different customers’ specifications. They are the one responsible for the creation of the Gold Bullions (gold bars).begins which is from the building of the tunnels to the actual extraction of the rocks. though. the ore body will now be ready for the milling process. the cleaned ore body will be ready for shipment to the gold refineries. After this.

Lepanto doesn’t have any suppliers. RETAILERS: The retailers are the distribution channels of the wholesalers who then sell the products directly to the end consumers. Types In terms of their business. Hong Kong. Peru. These include the electronic stores and jewellers. A. Lepanto’s products will pass through four channels before reaching the end-users. C. instead it is the one that provides the raw materials for the refinery and manufacturing companies that buy their products. Number–As shown on the graph above. among others. Then afterwards. . Location–Canada. China. wholesalers and retailers indirectly B. Length – International D. Size– E.

V. In regards with this. the delivery of the products to the refinery companies may not be on time. VII. Lepanto. They choose the companies based on their marketing channel objectives. Lepanto gives . Channel Management Decisions The distribution channel management decisions of mining companies are different from other industries. Legal and Ethical Issues Legal and Ethical issues includes having conflicts with the workers’ unions inside the company. Therefore. environmental disasters and issues regarding the local government. is the one where the refinery and manufacturing companies buy the raw materials from. Corporate Social Responsibilities IX. VIII. Distribution Strategies VI. Lepanto exercises their rights to choose and select companies in which they will make business deals with. for instance.  Channel Conflict Management Bad Weather Due to the inclement weather patterns.

Distribution Plans A.notices to the refinery companies about the situation so that both sides can make adjustments regarding the delivery. X. which is the refinery companies. . Lepanto Consolidated Mining Company has lesser distribution conflicts than other companies because they only have to deal with the refinery companies.  Tariffs and Taxes: XI. Even though the golds that they mine passes through four channels before reaching the end-users. Cost Concideration  Changing oil prices: Lepanto uses their own cargo planes to deliver their products to the refinery companies. Conclusion Being on top of the supply chain. they only directly transact with one channel.

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