Mining and natural resources
Mining Procurement, Warehouse and Supply Chain Transformation
Enterprise transformation across procurement, contracting, warehousing and materials management for a large mining and resource organization.
- $84.3M
- Realized annual savings
- $35M+
- Further opportunity identified
- $5M to $10M
- Contract recoveries identified
The situation
A large mining and resource organization faced high inventory levels, fragmented procurement practices, limited materials visibility, inconsistent supplier management, inefficient warehouse operations, and opportunities to strengthen contractor and contract governance.
The challenge
Leadership sought to reduce cost and working capital, improve supplier performance, increase materials visibility, strengthen warehouse operations and establish greater accountability across the supply chain.
The ISI approach
ISI Consulting Group partnered with executive, operations, procurement, contracting and supply chain leadership to deliver an enterprise transformation covering procurement, supplier management, contracting, warehousing, logistics and materials management.
Implementation
The work applied Lean warehousing, strategic sourcing, inventory analysis, process mapping, supplier governance, KPI deployment, contract optimization, performance dashboards, stage-gate controls and operating model improvement.
Governance and benefits realization processes moved opportunities from identification through approval, implementation, measurement and sustainment.
Results
- Generated $84.3 million in realized annual savings
- Identified more than $35 million in additional procurement and supply chain opportunity
- Improved procurement effectiveness and supplier performance management
- Reduced working capital tied up in inventory
- Improved warehouse efficiency and inventory control practices
- Identified $5 million to $10 million in potential contract-related recoveries
- Implemented executive dashboards, KPI governance and supplier stewardship processes
- Established a formal stage-gate process to strengthen implementation oversight and benefits realization
Key services applied
- Enterprise Transformation
- Performance-Based Implementation
- Supply Chain Transformation
- Procurement Transformation
- Lean Warehousing
- Strategic Sourcing
- Contract Optimization
- Inventory Optimization
- Working-Capital Improvement
- Supplier Governance
- PMO Leadership
- Performance Management
- Change Management
- Benefits Realization
Rapid Assessment
Two to three days to find where the value is
A focused review of a site, a function or a single operational problem. Leadership receives a fact-based view of the performance gap, the likely value, the immediate priorities and the right next step.