Super Cheap Auto

Overview

For a presentation overview on GRA’s working capital and service level optimisation work with Super Cheap Auto download a pdf document here.

Presentation

To view the 2009 SMART presentation made by Super Cheap Auto’s Managing Director Peter Birtles and GRA’s Carter McNabb download a pdf document here.

Client Quotes

“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.

Super Cheap Auto's ASX announcements & presentations

SUL ASX Annual Results FY06 Announcement 24 Aug 06
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

SUL ASX Announcement 23 Feb 2006

In the News

The Australian newspaper published a case study 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.”  
Read the entire article in the link below.
Stock Push Makes Order of Chaos, The Australian, September 2006


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.
Read the entire article in the link below.
Super Cheap Sets Supply ReformThe Financial Review October 2004


“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.” 
Read the entire article in the link below.

Mix and match to gain best solution,The Financial Review Nov 2004.


“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
Read  more about this win. 


Case Study

Read the Super Cheap Auto Demand Planning, Inventory Optimisation & Supply Planning Case Study to find out more about our work and results.

Testimonials

“Many thanks for the review; it certainly exceeded our expectations, and we look forward to implementing many, if not all, of the recommendations.”

– Glenn Turner, Finance Director, Renault Nissan

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)