Automotive / Aerospace / Rail

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Asset Acquisition Strategy (Spares List Determination)

Our client is responsible for managing and providing engineering and supply chain sustainment support for an aviation system. An operating system had been introduced into service and due to regular demands for spares that could not be fulfilled (as they were not on the original spares acquisition list) was at risk of not achieving Full Operating Capability. GRA assisted the client to develop a spares buy list. Our client made use of GRA’s suggested spares buy list and recommended inventory management settings to make a one off acquisition buy to address the ‘nil stock’ issue. Once the spares acquired came into stock, the demanded spares fulfilment rate to the operator dramatically improved and the system achieved Full Operating Capability on schedule.

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Asset Acquisition Strategy (Test Equipment Options Development)

Our client is responsible for managing and providing engineering and supply chain sustainment support for an aviation system. A major component of the Support and Test Equipment (S&TE) system was due to become obsolete, with a limited window to make an acquisition decision for the number of replacement (upgraded model) units and associated test program sets. GRA assisted the client in making a timely acquisition decision with in depth analysis and modelling of future state scenario options. Our support to the client and recommendations enabled them to make a well informed decision within the limited time window, to satisfy the procurement lead time requirement and mitigate a high risk with significant consequences.

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Asset Acquisition Strategy (Logistics Support Concept Review)

Our client is responsible for managing and providing engineering and supply chain sustainment support for an aviation system. Following a series of acquisition decisions and challenges a comprehensive review of the sustainment support strategy was undertaken by GRA. We identified 30 components that may be impacted or warranted a review; assessed each component prioritising findings for a ‘deep dive’ analysis based on impact to the system and support costs; conducted a detail analysis of nine support strategy components; and recommended options with an assessment of trade-offs and impact on cost and system outcomes under each option.

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Procurement Transformation

Our client is Australia’s leading rail freight operator and a top 50 ASX company. Over the previous five years the company had embarked on a large scale transformation journey from a government owned enterprise to an ASX listed company. As the opportunities for savings through restructuring had largely been captured, the company was looking for further savings opportunities, including looking to Procurement to find ways to significantly reduce external spend. GRA was engaged to design and lead a company-wide Procurement Transformation program. Our approach was to be highly collaborative in order to engage a recently restructured Procurement department and re-establish stakeholder relationships with the business. Initiatives delivered include identified total procurement savings opportunity of $120m with implemented initiatives delivering $75m in the first 12 months.

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Engineering and Maintenance Operating Model

Our client is Australia’s largest rail freight operator, providing customers with integrated freight and logistics solutions across an extensive national rail and road network. As part of the organisation’s transformation program, the Engineering & Maintenance function implemented a new operating model that changed the way engineering, maintenance, reliability and supply chain outcomes were delivered. Realisation of the full benefits of the new operating model were at risk due to a range of difficulties. Successful outcomes of the project included the development of a range of agreed processes for maintenance planning, management reporting, diagnosing maintenance schedule adherence, engineering change management, updating and maintaining equipment structures as well as a framework for cleansing SAP engineering & maintenance master data – including SAP Task Lists and BOMs.

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Supply Chain Strategic Review

Our client is an after-market and OEM four-wheel drive equipment manufacturer in Australia and Asia distributing into global markets. They faced many supply chain challenges, including sales split between Australia and the rest of the world, customer service and 'closeness to supply' expectations not being met, and planning and operations management processes not fully integrated and aligned. GRA undertook a strategic review of our client's supply chain and delivered a clear roadmap of organisational capability improvements to provide immediate improvements, opportunities to optimise inventory and quantified current and proposed models that clearly illustrate the cost and structural benefits of an alternate supply chain strategy and design.

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Supply Chain Strategy – Network Optimisation

A large multi-billion dollar retail conglomerate with a strong focus on acquisition engaged GRA to review the physical footprint of its Automotive and Hardware supply chain. The scope was to identify opportunities to lower operating costs. GRA provided a supply chain strategy that prompted the executive team to consolidate specific business supply chains in order to maximise centralisation opportunity, both from a network and process design view. A physical network was recommended identifying operating savings in excess of $15m, and to support the strategy, an operational capability assessment was conducted to leverage and execute the advised strategy. 

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Strategic Supply Chain Planning Review

Our client, a successful manufacturer creating quality products for the retail, building and automotive industries engaged GRA to blueprint a best fit and best practice planning and system solution to deliver immediate benefits and scalability for long-term growth. The blueprint detailed five key steps to deliver supply chain transformation, which covered process, people and ERP systems. The project identified the following potential outcomes: $3m reduction in average inventory holdings; $3m improvement to cash flow; and $450,000 p.a. reduction in operating costs.

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Testimonials

“We selected GRA to proceed with implementation of the supply chain transformation because they had a reputation in the market for results delivery. This reputation proved to have merit. With their help we have increased service levels, improved our working capital and reduced our supply chains costs. Their consulting approach in implementation is unique as it delivers outcomes whilst ensuring they are sustained and owned by the business.”

– Brad Hurst, Regional Supply Chain Director ANZ & Global Supply Chain Integration Project Lead, Allnex

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)