Reclaiming 23% by Slashing Inventory Waste with Zero Reliability Risk
Despite massive working capital tied up in inventory, a major mining operator struggled with material records that lacked reliability and significant data fragmentation.
Pain Points
400K+ MRO Material Records, $67M Inventory Value
- Inventory Hoarding
- High Non-Moving Stock
- Inflated Maintenance Costs
- Unplanned Downtime Risk
- Audit & Compliance Risk
- Poor Data Visibility
- The Solution
- Audit & Compliance Risk
- Poor Data Visibility
- The Solution
Solution
- Inventory Optimization Framework: Ensuring the right stock, right location, right time, and right cost with controlled working capital.
- Strategic Material Criticality Framework: Aligning spare availability and reliability with business impact using data maturity assessment and industry algorithms.
- Enterprise Master Data Management: Establishing a Single Source of Truth by identifying and eliminating duplicates to sustain optimized stock.
Step 1: Data Foundation
What Happens
- 10,000 duplicates eliminated
- 40,000 MRO records consolidated
- Single Source of Truth created
Business Impact
- 16.6% Cost Reduction
- $11.1 Mn Unlocked
Step 2: Inventory Intelligence
What Happens
- $67M inventory analyzed40,000
- MCR, ABC, XYZ, VED applied
- 25K materials optimized (Min/Max, ROP, Safety Stock)
- $20M non-moving identified
Business Impact
- + 16.6% Cost Reduction
- $11.1 Mn Unlocked
Step 3: Procurement Optimization
What Happens
- Contract compliance: 60% → 80%
- $32.6M spend optimized
- 30% of MRO moved to JIT / VMI
Business Impact
- 10% Savings
- $3.2M Saved
Step 4: Warehouse Optimization
What Happens
- Replenishment aligned to usage
- Shelf-life & packaging optimized
- Storage & bin management redesigned
Business Impact
- 23% Reduction (Y1)
- $11.1 Mn Unloc7% More (Y2) $20.1M Savedked
BUSINESS VALUE
- $35M+ Total Cost Reduction
- Across Inventory
- MRO
- Procurement & Warehousing
RESULTS
400K+ MRO Material Records, $67M Inventory Value
Optimized MRP & Inventory Meta-data for ~25K materials, including Safety Stock and Min/Max levels.
$11.1M Cost Reduction through the elimination of duplicate material records.
Improved Contract Compliance target of 80% for MRO items with recommended JIT/VMI strategies.
Stop over insuring your assets with excess stock.
We align your inventory levels with actual operational risk, delivering the perfect balance of fiscal discipline and mechanical uptime.
Shift your strategy from storing wealth to generating it.
