A large metallurgical coal operation relied on a contractor‑managed warehouse and inventory system to support maintenance execution across fixed plant and mobile assets.
While inventory coverage existed, performance issues in cataloguing, stock accuracy and procurement created inefficiencies across maintenance, planning and execution. These inefficiencies impacted both working capital and asset reliability.
At the same time, the operation was preparing for increased production volumes, placing additional pressure on materials availability, supply chain responsiveness and maintenance readiness.
The operation was also undergoing an internal restructure and a cost reduction drive, adding pressure to resolve inventory inefficiencies without increasing spend.
The operator engaged eXcellerate to assess and improve inventory performance, reduce working capital exposure and ensure that stores and supply chain systems supported maintenance execution at scale.
The Challenge: High Working Capital and Low Inventory Effectiveness
eXcellerate identified that inventory performance was limiting both financial efficiency and operational execution.
Key challenges included:
- Low cataloguing levels and poor inventory accuracy, driving unstructured purchasing and limiting visibility of critical parts
- Significant value in obsolete and surplus inventory, tying up working capital without supporting operations
- Fragmented processes between warehouse, maintenance and planning teams
- Limited visibility of critical and insurance spares, with misclassification exposing $28.6M in inventory value to risk
- Ambiguous KPIs with the warehouse provider, leaving contract performance difficult to measure or enforce
These issues locked capital in stock that did not add value, critical materials were not consistently available when required, and maintenance execution depended on reactive purchasing rather than planned supply.
The Approach: Data‑Led Inventory and Supply Chain Assessment
eXcellerate applied a structured approach across stakeholders, contract terms and inventory data to align performance with operational and financial outcomes. The team:
- Analysed inventory holdings and procurement processes to identify obsolete stock, duplication, cataloguing gaps and working capital exposure
- Audited contract scope delivery and warehouse contractor performance against operational requirements
- Facilitated workshops with warehouse, maintenance and planning teams to align on findings and next steps
- Evaluated alignment between inventory, maintenance planning and execution
- Identified critical spares requirements based on asset risk and reliability
This approach focused on linking inventory decisions to both cost and operational impact, ensuring changes improved maintenance effectiveness and financial performance.
The assessment identified 13 key improvement areas spanning contract alignment, process management, repairable and warranty management, and critical spares.
Improving Inventory Control and Maintenance Alignment
Working with site leadership, eXcellerate prioritised targeted actions to improve inventory governance, visibility and efficiency. Key actions included:
- Analysed inventory holdings and procurement processes to identify obsolete stock, duplication, cataloguing gaps and working capital exposure
- Audited contract scope delivery and warehouse contractor performance against operational requirements
- Facilitated workshops with warehouse, maintenance and planning teams to align on findings and next steps
- Evaluated alignment between inventory, maintenance planning and execution
- Identified critical spares requirements based on asset risk and reliability
These actions shifted inventory from a passive storage function to an active enabler of maintenance performance.
The Outcome: Reduced Working Capital and Improved Execution Readiness
The eXcellerate review identified a significant opportunity to reduce working capital and improve operational performance, with outcomes including:
- $3.4M to $5M reduction in inventory holdings and forward procurement requirements
- $1.1M in confirmed savings from contract clause corrections
- Improved alignment between inventory and maintenance execution
- Increased availability of critical materials for high‑priority work
- Reduced reliance on reactive purchasing
- Improved transparency and accountability across warehouse operations
From a financial perspective, the transformation released capital tied up in non‑productive inventory while improving control over future procurement.
From an operational perspective, the improvements ensured that materials availability supported maintenance execution, reducing delays and improving reliability outcomes.
By aligning inventory strategy with asset risk and maintenance priorities, eXcellerate enabled the operation to improve both capital efficiency and operational performance, ensuring that supply chain systems supported production growth rather than constraining it.
Unlock value from your inventory and supply chain
If your operation carries high inventory levels or struggles with materials availability, there may be a significant opportunity to reduce working capital while improving maintenance performance.
Contact eXcellerate to assess your inventory strategy and identify immediate value opportunities.
