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Key Outcomes Generated

• $1M MoM cost reductions
• Recommendations on insourcing / outsourcing
• Database to manage each machine
• Cleansed spend data
• Automated dashboards

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The Challenge

An ASX listed mining company was experiencing increasing costs related to the management of its equipment, the management of which was outsourced. They needed to understand the cost drivers with this particular partner to reduce costs, and also needed improved governance to support the contract. They also needed to fully cleanse the data coming from the vendor which was inaccurate, incomplete and lacked the level of detail for them to manage at the asset level.

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Our Approach

To better understand the cost drivers, we started with building a database down to asset level. This required us to cleanse the data from the vendor, and identify gaps and inaccuracies. Once the database was built, we had a full view of the total lifecycle costs of each machine to better understand cost drivers and the efficiency of each machine. Finally, we automated the insights the finance and commercial team required each month to reduce manual work.