Working Capital Improvement

NEEDS-BASED RESULTS

 

Working Capital Improvement

SITUATION

Working capital was not closely managed at this leading mining organization and contractor costs had grown unchecked.

DRIVER GOAL

  • Improve working capital performance and release $19.7 million of cash.
  • Reduce contractor cost by $6.4 million.

RESULT

  • Released $18 million in cash.
  • Reduced contractor cost by $4.6 million, in just 15 weeks.
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Case Study

Improve Working Capital Performance & Reduce Contractor Cost

PDF

Issue

Working capital had not been a focus for this leading mining organization and substantial cash benefits could be realized within a short period of time. Additionally, contractor costs had grown and needed to be reduced to ensure current and future profitability. The remote location and aboriginal agreements added complexity to realizing the cost reductions.

Highland Approach

A detailed analysis identified four primary work streams, or focus areas:

  • Accounts Payable Optimization
  • Haul Truck Optimization and Reduction
  • Light Vehicle Optimization and Reduction
  • Contractor Resource Optimization

 Actions Taken

The Highland Group identified, developed and implemented processes, disciplines and management practices delivering the following results:

  • Increased Days Payable Outstanding by 9 days in Accounts Payable.
  • Improved utilization of haul trucks resulting in a reduction of the fleet by two trucks.
  • Implemented a System For Managing Contractors in the Mobile Equipment Maintenance Shop to increase productivity and reduce cost.
  • Increased utilization of light vehicles resulting in a reduction in the total number of vehicles.

Quick results generate almost

$5m

in contractor cost and working capital results in just 15 weeks!

As a result of the recommendations from the experienced members of The Highland Group, the efficiency and productivity of our company has significantly improved.

President & Chief Operating Officer, Mining Company

Related Information

subject matter-based

Senior Consultant

Supply Chain

Europe

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Senior Consultant

Working Capital

North America

Joe is an innovative and versatile professional with over 25 years of solid experience building, growing and operating diverse, multi-faceted and geographically dispersed global high-growth organizations. He has an exceptional track record of managing projects that deliver credible and sustainable improvements in cash management, operations, service quality and cost.

Project Director

Working Capital

Europe

Hamid has over 20 years of experience as a management consultant. He has a wealth of experience in process and operational improvements, corporate strategic planning, development and deployment, global sourcing, supply chain management as well as working capital improvement experience (A/R, A/P, Contract & Vendor Management, Inventory, MRO/Materials & Supplies).

Senior Consultant

and Geologist

North America

Cay is a senior mining consultant and geologist with over 20 years of industry, investment banking and consulting experience. She has extensive experience in the mining sector ranging from exploration and project development, mining and process operations, to project finance and management consulting.