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

"After undertaking a broad diagnostic, GRA identified some great opportunities for our business. The GRA team worked effectively with management to prioritise the key areas of focus in terms of inventory reduction, freight cost optimisation, distribution network structure and broader organisational processes such as S&OP."

– Andrew Coventry, Catalyst Investment Managers Pty Ltd

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)