Client Profile & Project Scope
An exisiting mining company had been attempting to reduce its inventory while progressing from a “owner miner” to a “contracting” business model at multiple mining operations. Positioned in remote locations the cost to relocate stock and support the incoming contractor was proving to be both a financial and a logistical challenge. Furthermore due to internal cutbacks and inexperienced staff the company were looking at large inventory financial writie offs in leui of any other vialbe option.
Enter Stock Xchange Stock Xchange was engaged to build a suitable exit strategy that would:
- Encompass a stock reduction program with a suitable ROI and improve product/parts supply for future operations.
- Recommend inventory management with min./max. stock points with efficient logistical service.
- Maintain minimum stock within budget objectives to maintain production while the the transition occurred to contract mining.
- Ensure the incoming contractor had sufficient inventory to facilitate future production and avoid costly anomalies.
- Organised a strategy meeting with board members, operational management and the incoming contractor.
- Conducted an inventory audit at the three different sites, identified obsolete stock items and upload the listing on our online data base.
- Implemented internal stock management system inline with the new contractor objectives and Stock Xchange sale strategy.
- Approached specific clients within the same geographical region and Stock Xchange clients base for suitable sale of stock items suited to their business operations.
- Reduced inventory within budget objectives, timelines and ROI
- Implemented ordering process with min./max. stock levels suitable for quick supply points from OEM via Stock Xchange ordering process.
- Implement logistics planning & freight management
- Provided fit-for-purpose programs containing stock-takes, cycle counts and auditing process.
- Provided distribution centers to hold stock in central geographical regions.