Construction & Building

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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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3PL Contract Improvement and Transport Efficiency Review

Our client is an Australian Mining company and operates a remote facility in rural Queensland. The movement of product (bulk and bagged) is executed by a third party logistics provider. Recently the outtake facility has been experiencing bottlenecks, slow throughput and delays. A large capital investment was requested to improve throughput. GRA was engaged to review the end-to-end process and identify opportunities to improve throughput and to provide advice on the capital investment. The project led to a number of key changes in the way the contract and processes between our client and the 3PL operated.

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Supply Chain Planning Transformation

Our client is a publicly listed company that sources and manufactures bathroom and kitchen products nationally to trade and consumer channels. They were undertaking significant business transformation, which included changing their business model from being a primarily locally manufactured organisation to an internationally sourced one, and needed help. GRA implemented a programme of works focussed on sustainable improvement initiatives across the Supply Chain Planning function. 

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3PL Transport Review

Our client, an Australian mining operator, was experiencing difficulties surrounding capacity constraints and scheduling conflicts with their outtake facility. It was felt that additional capacity was required, but before committing to further capital expenditure GRA was asked to review the flow of the operation and seek opportunities to improve throughput. After conducting site visits, process reviews and data analysis GRA determined that there was no requirement to commit additional capital expenditure in the medium term, and made recommendations including enhancement of the planning process; implementation of an operations planning process; and the establishment of operational targets to create the additional capacity required. The recommendations were accepted and are in the process of being implemented.

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Inventory Optimisation, Demand & Replenishment Planning 1

Maintaining and improving on customer service levels, while reducing and optimising inventory levels was a key requirement for our client, a building and supplies manufacturer and distributor. Their challenges included non-standard, decentralised inventory planning processes, out-dated inventory management systems and cumbersome inventory analysis tools. GRA piloted an advanced inventory management system and achieved overall 14% reduction in excess inventory for all pilot stocking locations in only 3 weeks, up to 30% improvement in stock turns, no negative impact on customer service and lower projected stock-outs.

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Network Consolidation & Facility Layout Design

Our client, a building and construction materials manufacturer and distributor, was collapsing its warehousing network and needed to assess the impact of consolidating inventory holdings at its primary manufacturing plant. The plant was sub-optimally laid out leading to unnecessary operating costs and had insufficient stocking space and locations to accommodate the additional inventories that the warehouse closure would place on it. GRA assessed the impact of combining warehouse and manufacturing facilities and developed a new facility design that reduced costs, improved flexibility to incorporate long term improvements, and improved material flow with reduced travel distances for both put-away and picking minimised.

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Warehousing Strategy

The merger of two steel manufacturers led to rationalisation of several sites within the network and dramatically increased the demand serviced by the remaining facilities. The resulting demand increase created a clear imperative for the company to assess its warehousing strategy. Post a detailed review and data modelling activity, three facility designs incorporating best practice design criteria, infrastructure and technology improvements were recommended. Key benefits of recommended designs included operating cost savings of up to $2m pa. Payback was achieved with cost effective solutions requiring $0.5m-$5.5m in capital over the short, medium and long term time horizons.

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Strategic Warehousing and Inventory Analysis

Our client commissioned the project to re-design the existing Distribution Centre in Victoria. The project involved the development of a plasterboard manufacturing presence and the collapse of two key facilities into the existing site. A new Distribution Centre design was required to accommodate the consolidated inventories of two DC’s at the combined re-developed site. A detailed facility design incorporating best practice design criteria was developed as well as infrastructure and technology improvements. Improved cubic capacity utilisation of existing facility using optimised production lot sizes, optimised slotting of SKU’s to reduce pick paths and sufficient capacity to accommodate inventories over the required 5 years was achieved.

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"GRA did a fantastic job in analysing our future stock needs and proposing a warehouse solution."

– Greg Williamson, Group's General Manager of Supply Chain, Amcor

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)