![]() Super Cheap Auto
"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."
"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."
"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."
Download Super Cheap Auto's ASX announcement & presentation below.
"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."
Download Super Cheap Auto's ASX announcement below.
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." Download the article below.
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. Download the article below.
"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."
Download the article below.
"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."
Download the article below.
![]() 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."
Download the full article below.
![]() 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."
Download the full article below.
![]() 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."
"The RAAF has reduced their inventory by $186 million whilst simultaneously increasing service levels (understocks reduced by 67%)."
"We've noticed a real improvement in the availability of spares of the last 12 months."
"Our workload is about 30% of what it was when we turned GAINS on."
Read the RAAF Success Story here or download it below.
![]() 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."
"Now I do the purchasing each month for all 14,000 items in 3 days - that used to take 6 people 2 weeks."
"We selected GRA because they guaranteed our success, clearly demonstrated their expertise and focused on the business process and people issues."
Read the CPI Case Study hereor download it below.
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."
"As anticipated, the GAINS Solution has more than met our objectives and expectations."
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Super Cheap AutoJust 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.
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Evolution 7 - Web Design Melbourne |