Excess and obsolete inventory management for mining
Excess and obsolete inventory ties up working capital, adds storage and deterioration costs, and eventually leads to write-offs. No movement does not necessarily mean no requirement.
The challenge
Excess builds up over years: spares remain when equipment is retired; supersessions leave old part numbers behind; project and shutdown surplus is not returned; duplicates multiply when mines change hands; and parameters, minimum order quantities and once-off demand treated as recurring keep adding stock.
A critical spare may not be issued for years and still protect the mine. A material that moved recently may already be obsolete because its equipment was removed. Without a link between spares and equipment, the default is to keep everything.
What is required
Link spares to the equipment and plant areas they support
Equipment lifecycle events that trigger material reviews
Routine reviews by movement class: slow-moving, non-moving, dead stock
Priorities by value, criticality and likelihood of obsolescence
Workflows with end users, maintenance, engineering and finance
Clear dispositions: retain, reduce, stop replenishment, transfer, return, sell, scrap
Recording the cause of excess so it can be corrected
StoXeo links materials to equipment and plant areas, so planners see what each spare protects. Retirements and modifications trigger reviews, and supersessions and alternatives stay visible. Candidates move through workflows; decisions, value and status are tracked, and released working capital is measured against targets. Because StoXeo records why excess arose, today’s decisions are less likely to become tomorrow’s obsolete stock.