Mining and natural resources
Mining
Mining operations carry working capital in the warehouse and margin in the contract. Procurement, materials management and supplier governance decide how much of each is recovered.
What we see repeatedly
The pressures this sector carries
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High inventory and limited materials visibility
Working capital sits in stores that nobody can see across, so the safe answer is always to order more.
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Fragmented procurement practice
Category strategy, sourcing and approval sit in different places, and savings identified are not savings realized.
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Supplier performance managed by exception
Suppliers are reviewed when something fails rather than measured against a standard everyone agreed to.
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Contract and contractor governance
Contracts are signed carefully and then managed loosely, which is where recoveries are lost.
What answers them
Capabilities applied in Mining
- Procurement transformation and strategic sourcing
- Contract optimization and recovery
- Lean warehousing and materials management
- Inventory and working capital improvement
- Supplier governance and stewardship
- Executive dashboards and KPI governance
- Stage-gate controls and benefits realization
- Operating model improvement
Equipment availability, maintenance backlog, materials readiness, contractor productivity, site logistics and operating discipline.
Typical deliverables
- Mine performance assessment
- Reliability plan
- Materials and contractor improvement plan
- Cost opportunity case
- Execution roadmap
Measured outcomes
What has been delivered in this sector
- $84.3 million in realized annual savings
- More than $35 million in additional procurement and supply chain opportunity identified
- $5 million to $10 million in potential contract-related recoveries identified
Client identities are withheld under confidentiality agreements. Results vary by engagement.
Engagements
Work delivered in Mining
Rapid Assessment
Two to three days on your site or function
A Rapid Assessment gives leadership a fact-based view of the performance gap, the likely value and the right next step, in the language your operation already uses.