Rapid cash generation and profit improvement with payment linked to results delivered

The results speak for themselves

The Australian* newspaper published an article about Super Cheap Auto’s inventory management achievements:

The Problem

Car parts supplier Super Cheap Auto had millions of dollars worth of working capital tied up in excess inventory in its stores and supply chain.

The Process

Staff were trained in managing inventory, business systems were updated and demand management software was installed.

The Result

The group freed up $12 million in working capital last financial year and expects to reap another $6 million in extra revenue next year.

* Source: ‘Stock push makes order of chaos’ The Australian, September 12, 2006

Royal Australian Air Force

Defence Spare Parts & Repairables

• $186m inventory reduction
• 67% reduction in understocks
• 70% workload reduction due to the exception based planning process

“We saved $14m in six months: here are the graphs. We’re used to being promised these kind of numbers; we’re just not used to having them delivered.” - Wing Commander, RAAF

CPI Group

Paper Distributor & Light Manufacturing

• $14m or 31% inventory reduction
• service levels increased from 62% to 96% in seven months

“Now I do the purchasing each month for all 14,000 items in three days - that used to take six people two weeks...” - M Byrne, CPI Stock Controller

Symbion Pharmacy Services

• 26% inventory reduction
• service levels increased to more than 97%

“Inventories reduced by 26% whilst first-fill service levels (excluding manufacturing stock-outs) increased from 96% to more than 97%.” - Simon Coates, SPS General ManagerSupply and Logistics

“Trundle said GRA assessed Snap Fresh’s stock holding procedures, its revenue information and handling/delivery costings. He said that following the GRA advice, the 15 per cent savings were achievable by early 2007.” ‘Qantas: Savings of 15% from GRA’ Food Management News, July 2005

GRA

A decade of delivering results rather than theory

* rapid, sustainable cash generation
* enhanced return on equity
* guaranteed results
* minimum 3:1 returns
* pay back within 12 months
* 20-40% inventory reduction
* improved service levels
* proven, consistently successful methodology
* the opportunity already exists within your business

How many of your current initiatives offer this sort of return in such a short timeframe?

“The positive results the Group has achieved in terms of gross margin and working capital control has really shone through in terms of the cash flow statement where our operating cash flow has enabled us to fully fund the roll out of the entire Group both from a fixed asset and working capital perspective. Breaking that down in a little more detail, the tight control on stock, while improving our in-store stock position, has generated in itself a $12million benefit from an operating cash flow perspective.”
- Gary Carroll, CFO
Super Cheap Auto Group
ASX Presentation
July 2006

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GRA Rapid Cash Generation