Stock push makes order of chaos

Authored by Ben Woodhead
Getting a huge stock of car parts under control was no small task.

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 as published in The Australian newspaper in the download below.

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Testimonials

The GRA facilitators really engaged our team well and the facilitation approach ensured that the team saw it as their process. Running “The Beer Game” at the start of the workshop was a great way to make the challenges of integrated planning real for our team.

– Lee Rawstron, Head of Operations ANZ, Sinochem Australia

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)