Who This Checklist Is For (And When To Use It)
This is for anyone who's ever had to source a critical piece of equipment—a crusher, a mill, a gearbox—with a deadline that feels impossible. Maybe your regular supplier's lead time just jumped from 12 weeks to 20. Maybe a breakdown has idled a production line. The budget's approved, but the timeline is tight.
I'm an office administrator for a mid-sized mining services company. I manage roughly $2M annually in equipment and MRO spend across about a dozen vendors. When we need parts fast, I'm the one making the calls. This checklist is what I built after one too many 'trust me, we can deliver' promises that fell through.
This process has 5 steps. It assumes you've already identified a potential supplier for FLSmidth equipment or parts. Now you need to verify they're credible, fast.
Step 1: Verify the Ownership Structure (Who Owns FLSmidth?)
The first thing I do—and I admit I didn't always—is check the legal entity. 'Who owns FLSmidth?' isn't a trivia question. It matters because the parent company's stability directly impacts your supplier's. If you're buying from a local distributor claiming to be an FLSmidth partner, you need to know if they're truly authorized or just using the brand name.
Here's what I look for:
- Check the official corporate registry. FLSmidth & Co. A/S is publicly traded. A quick check on the company's investor relations page or a site like Bloomberg will show you the major shareholders. This isn't my expertise—I'm not a corporate lawyer—but from a procurement perspective, I'm looking for stability and any recent red flags.
- Ask for a letter of authorization. Any legitimate distributor should be able to provide a letter from FLSmidth stating they are an authorized partner. Not a 'we buy from them' invoice, but a formal letter on letterhead.
- Cross-reference on LinkedIn. Search for the distributor's key people. Do they have FLSmidth in their past job titles? That's a good sign. If the entire company has a background in, say, food processing, and they're suddenly selling mining crushers, that's a flag (note to self: check this more often).
Step 2: Confirm Financial Health (Why FLSmidth Udbytte 2023 Matters)
This step is about making sure your supplier can actually deliver. I used to skip this. Then I had a small vendor go under while they held a $15,000 deposit on a specialty gearbox. I never saw the money or the part.
For a supplier dealing in FLSmidth equipment, I check financial health from two angles:
- The supplier's own books. Request their latest audited financials or at least a Dunn & Bradstreet report. If they're a small company, look for signs of over-leverage.
- The manufacturer's health. This is where 'flsmidth udbytte 2023' (which means 'dividend 2023' in Danish) becomes relevant. A company that paid a solid dividend recently is likely cash-positive and stable. I'm not a financial analyst, so I can't speak to the intricacies of their payout policy. What I can tell you is that if the OEM (FLSmidth) is struggling, it creates a ripple effect: long lead times, difficulty sourcing parts, potential warranty issues. A quick search for 'flsmidth annual report 2023' gives you the dividend data and a sense of their financial story.
I know I should have checked the financials on that gearbox supplier. I thought 'what are the odds?' Well, the odds caught up with me when they went silent. The replacement cost was 3x the deposit.
Step 3: Validate Their Inventory and Sourcing
Once the entity checks out, the next question is: do they actually have the parts? Or are they planning to source them after you place the order? This distinction is critical under a tight deadline.
Ask direct questions:
- 'Do you have this specific item in stock?' Get it in writing. I've had supplier say 'yes' verbally, and then 'oh, it's on backorder' appears on the invoice. (Frustrating doesn't begin to cover it.)
- 'If not, what is your standard sourcing process and timeline for FLSmidth parts?' Are they ordering from a regional FLSmidth warehouse? A global distribution center? Do they have a direct line to the factory in Denmark or India?
- 'Can I speak to your parts specialist?' A good one should be able to rattle off part numbers and interchangeability without hesitation. If they stumble on basic specs, that's a red flag.
Step 4: Audit Their Delivery and Logistics Capability
This is where the time certainty premium comes into play. In a crunch, I'd rather pay 20% more for guaranteed delivery than save money on a 'probably on time' promise.
Here's my checklist for this step:
- Ask for specific logistics partners. 'We use DHL Freight for heavy parts and FedEx Priority for small packages' is a good answer. 'We usually ship with whoever gives us the best rate' is not.
- Request a shipping timeline with penalties. Some suppliers will agree to a contract clause that discounts the freight cost if they miss the delivery window. This isn't common, but if they're confident, they'll consider it.
- Check for demurrage or special handling experience. Mining equipment isn't a standard pallet. Does the supplier know how to handle oversized loads, port logistics, and customs for your country? This gets into logistics territory, which isn't my expertise. I'd recommend consulting your shipping manager for the specifics.
I once saved $400 on a crusher liner by choosing the cheaper freight option. It arrived late, and I had to spend $800 on a rush reorder from a local supplier just to keep the mill running. The 'budget freight' choice looked smart until the liner was a no-show. Net loss: $400. Now I budget for guaranteed shipping when the mill is down.
Step 5: Scrutinize the After-Sales Support Agreement
I have mixed feelings about extended warranties. On one hand, they feel like a profit center for the vendor. On the other, when a SAG mill gearbox fails, having a pre-agreed service plan saves weeks of negotiation. This step is often the first to be rushed when the deadline is looming.
Key points to cover:
- Warranty terms for emergency deliveries. Does the rush order have the same warranty as standard? I've seen clauses that reduce the warranty period for expedited orders (surprise, surprise).
- On-site service availability. If you're buying a major piece of equipment like an apron feeder or a cone crusher, does the supplier provide commissioning support? What does that cost?
- Parts availability commitment. 'We guarantee availability of spare parts for 10 years' is a specific promise. Get it in the contract.
Common Traps to Avoid
I've been doing this for 5 years now, and here are the mistakes I still see buyers make when they're in a hurry:
- Relying solely on brand name. A company can claim to be 'an FLSmidth partner' while only having bought a few parts from them for resale. Always ask for the authorization letter.
- Skipping the reference call. Ask for three clients who've bought similar equipment in the last year. If they can't provide them, walk away.
- Accepting verbal timelines. 'I'll have it to you by Friday' means nothing without an order confirmation, a tracking number, and a clear understanding of shipping mode.
- Underestimating miscellaneous costs. Freight for a 40-ton mill shell is not a line item you want to discover after the PO is signed. Confirm all-in pricing as of the date of your quote (which, honestly, I should do more carefully).
This was accurate as of January 2025. The mining supply chain moves fast, so verify current pricing and lead times with your shortlisted vendors.
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