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Slow Movers Sourcing
Delivering value to top mining company by financing spare parts & safety stock
Customer facts
Geography - Americas
Sector - Mining
Services - Purchase, warehousing & sell of slow-moving spare parts
Customer challenge
Large international mining group wants a long-term E2E solution for the management, storage & utilization of the slow/non-moving parts of its inventory, granting at the same time the immediate availability of such inventory in case of need. This is a multinational mining company specialized in extraction, initial processing & refining of precious & rare metals. More than 25% of the inventory value (15% of the inventory items) is made of critical/safety stock items necessary to grant continuity of operations in case of incidents, mechanical failures or operational issues.
Opportunity Scope:
The customers wanted to free-up cash & decrease the value of the stock in its balance sheet, & by doing so improve its ROCE, Net Debt & Free Cashflow position.
EVDO solution
Use of a partner entity (TradeCo) which purchases & holds the title of the stock until the slow/non-moving items are needed for running operations. The solution shifts the title of the assets from customer’s balance sheet to TradeCo, ensuring at the same time immediate availability of the spare parts in case of need.
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