Case studies • Global WC reduction program: EY was chosen by a large global miner to develop a global WC reduction hjg_jYe&L`akhjg_jYeafngdn]\2\]Õfaf_jgd]kYf\ responsibilities for WC across all relevant functions; validating reporting processes with relevant stakeholders and supporting WC decision-making; reviewing existing WC processes and identifying areas for improvement; developing detailed action plans to implement leading practices and measure progress through the design of appropriate KPIs; and putting in place the right incentives to motivate and change internal behaviors. • “Purchase-to-pay” process improvement: EY was engaged to improve the management of its “purchase-to-pay” processes. This program involved: segmenting the supplier base according to payment terms, trigger and frequency; renegotiating and harmonizing payment practices for each segment, while ensuring compliance; eradicating the root causes of invoice processing delays; and introducing reports and metrics to monitor and assess progress. • Inventory management improvement: A mining company had pursued a number of initiatives to improve its inventory management over a three-year period, but felt that there was still scope to further improve performance. An EY project team was engaged to review the existing processes and design an action plan to reduce inventory levels. Afn]flgjqlYj_]ld]n]dko]j][Yd[mdYl]\lgj]Ö][l the characteristics of each stock-keeping unit (SKU), including supply lead times, forecast accuracy, gj\]j%ÕddjYl]_gYdkYf\gj\]jaf_eafaemeimYflala]k& Forecast accuracy was improved via the planning process, while lead times were reduced for key products. This program led to an overall reduction in inventory levels and write-offs (however, with some SKUs reporting higher levels of inventory to support improving service levels). • WC dashboard: For a large mining company, EY created a WC dashboard, providing forecasts of future WC balances and establishing a new variance reporting capability. 7 Cash in the ground: working capital management in the mining sector