Experts in Demand, Inventory & Supply Chain Optimisation
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Results – what our clients are saying
Super Cheap Auto

Super Cheap Auto




"From a balance sheet perspective, the key take-aways are our significant reduction in inventory per store number, down to below $500,000 per store, and that's resulted from our continuous improvement in relation to our supply chain area and in particular our forecasting and replenishing systems. The key point to note there is that we’ve actually improved our in-stock position while managing down our overall inventory level."
Gary Carroll, Chief Financial Officer, Super Cheap Auto Group, Full Year Results presentation to the Australian Stock Exchange, August 2006

"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 $12 million benefit from an operating cash flow perspective."
Gary Carroll, Chief Financial Officer, Super Cheap Auto Group, Full Year Results presentation to the Australian Stock Exchange, August 2006

"The work that we’ve done on inventory and the control that we’ve shown in the businesses has meant that we have very strong operating cash flow during the year, and that allowed us to fully cover the investment that we have made in our new stores in both Super Cheap Auto and in BCF we have been able to fully fund the investment we have made in fixed assets and in inventory in those businesses."
Peter Birtles, Managing Director, Super Cheap Auto Group, Full Year Results presentation to the Australian Stock Exchange, August 2006.

"Super Cheap Auto through the year certainly has gained market share and has been successful in growing both its gross and net margins in what certainly have been difficult trading conditions. We are also very pleased that our average inventory investment across Super Cheap Auto has reduced by 10% but we've been able to achieve that reduction in stock levels at the same time as increasing inventory presence on shelf in-store. So it's been a case of taking inventory out of our distribution centres and supply chain and increasing investment in on-shelf availability."
Peter Birtles, Managing Director, Super Cheap Auto Group, Full Year Results presentation to the Australian Stock Exchange, August 2006.

Download Super Cheap Auto's ASX announcement & presentation below.

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Audio ASX Annual Results FY06 Audio
SUL ASX Annual Results FY06 Announcement 24 Aug 06 PDF
SUL ASX Results Presentation 24 Aug 06 PDF


"Achieving growth of 17.1% in earnings in tough retail conditions is a very creditable result. Gross margins have improved, and costs have been well controlled. We are also encouraged by our management of inventory, with both average inventory per store and out of stocks reducing as our teams capitalise on our investment in forecasting and replenishment systems."
Peter Birtles Managing Director Super Cheap Auto Group, Australian Stock Exchange statement, January 2006

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SUL ASX Announcement 23 Feb 2006 PDF


The Australian newspaper published an article about Super Cheap Auto’s supply chain challenges, solutions and results. Below is an extract:

"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."
"Stock Push Makes Order of Chaos" – The Australian, September 2006.

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SCA Case Study The Australian Sept 2006 PDF


Super Cheap Auto's Managing Director Bob Thorn, talks to the Financial Review about expectations for the implementation of the advanced planning system GAINS. He quotes goals for the new system.
"Super Cheap sets supply reform" The Financial Review October 2004

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Super Cheap Sets Supply Reform - AFR - Oct 2004 PDF


"Super Cheap, with annual sales of $382.7 million, has decided to install a best-of-breed forecasting software known as GAINS, which will be paired with its existing SAP enterprise resource planning system. From next year the SAP software will be used to generate reports based on information stored with Super Cheap's data warehouse and supply-chain system."
"Mix and match to gain best solution" The Financial Review Nov 2004.

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Mix and match to gain best solution - AFR - Nov 2004 PDF


"The Mercury Awards panel of judges agreed that GRA has distinguished itself as a sophisticated supply chain technology consultant, with particular expertise in the field of advanced planning and supply chain optimisation. In particular, the innovative use of the company's GAINS planning tool to reduce Super Cheap Auto's inventory by 12% and generate a $12 million benefit to operating cash flow as part of the FOSIL Project, was an exceptional achievement in a difficult retail climate."
Anna Game-Lopata, Logistics Magazine Editor

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GRA Wins Mercury Award Logistics Magazine article PDF


Symbion Pharmacy Services

Symbion Pharmacy Services (Formerly Mayne Health)

"In 2001... GAINS, a demand, inventory and supply chain planning system was selected and implemented. The aim was to equip the business with the ability to optimally balance capital, costs, capacity and customer service levels. What did it achieve? Inventories reduced by 26% whilst first-fill service levels (excluding manufacturer stock-outs) increased from 96% to more than 97%... the inventory reduction boosted return on assets (ROA) whilst freeing up capital, and the increase in stock turns improved supply chain efficiency. Forecast accuracy has also improved markedly. SPS is now managing by exception and operating with less inventory, improved service levels and lower costs. That's the bottom line, and it's a good result, particularly because it is sustainable."
"Advancing Health" - MHD Magazine, May-June 2006

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MHD Symbion Advancing Health May-June 2006 PDF


Snap Fresh

Snap Fresh (Qantas subsidiary)

"Qantas is moving towards 15% cost and efficiency savings on its supply chain distribution for one million meals a month produced at its value-adding in-flight Snap Fresh offshoot... Mark Trundle, general manager of Snap Fresh, told FMN that four to five per cent savings had already been achieved and another five per cent was "close"... 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."
FMN Magazine

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FMN SnapFresh July 2005 PDF


RAAF

Royal Australian Airforce (RAAF)

"We saved $14 million in six months… here are the graphs. We’re used to being promised these kinds of numbers; we’re just not used to having them delivered."
Wing Commander, Royal Australian Airforce (RAAF)

"The RAAF has reduced their inventory by $186 million whilst simultaneously increasing service levels (understocks reduced by 67%)."
Peter Burgess, GRA Partner

"We've noticed a real improvement in the availability of spares of the last 12 months."
Maintenance & Engineering Supervisor, RAAF

"Our workload is about 30% of what it was when we turned GAINS on."
Spares Inventory Manager, RAAF

Read the RAAF Success Story here or download it below.

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GRA RAAF Success Story PDF


CPI

CPI

"We needed a world class system and an organisation that could help us with the business issues and share their knowledge. We've been through tough implementations before, and we knew what to look for this time. We’ve never questioned our decision actually it's been constantly confirmed."
Michael Byrne, Group Stock Controller, CPI

"Now I do the purchasing each month for all 14,000 items in 3 days - that used to take 6 people 2 weeks."
Michael Byrne, Group Stock Controller, CPI

"We selected GRA because they guaranteed our success, clearly demonstrated their expertise and focused on the business process and people issues."
Michael Byrne, Group Stock Controller, CPI

Read the CPI Case Study hereor download it below.

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GRA CPI Success Story PDF


Mitsubishi Engine

"Because we were managing over 30,000 items using the manpower equivalent to one and one-half dedicated resources, the exception management capabilities of GAINS were critically important."
Michael Wood, General Manager, Parts Operations, Mitsubishi Engine

"As anticipated, the GAINS Solution has more than met our objectives and expectations."
Michael Wood, General Manager, Parts Operations, Mitsubishi Engine

Client Success Story

Super Cheap Auto

Just over a year since the new process and systems GRA implemented went 'live', inventories reduced by more than 12%, service levels increased and cash flow increased by $12m.