Mining & Resources

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ERP Enterprise Asset Management Supply Chain

Our client is a regional water and wastewater utility service provider with a complex supply chain involving materials, outsourced and supporting services with spend ~$0.5bn pa is required to enable the asset management activity. An ERP upgrade was in progress to replace an outdated and unsupported ABB Ellipse system version. The Ellipse ERP upgrade was used as a platform to catalyse a major transformation of Enterprise Asset Management in the organisation including optimised mobile workforce management using Click Field Service Edge (FSE). GRA were engaged to provide Supply Chain subject matter expertise supporting the functional design of the ERP System Integration Project Consortium, specifically in the areas of Contract Management, Service Procurement, Work Order Management and Procurement Framework. For each of the focus areas our team set out to investigate Business Requirements and System Capability. 

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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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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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Supply Chain Strategic Plan

Our client is responsible for the operation and maintenance of undersea and above ground gas pipelines between numerous offshore oil / gas fields and a LNG processing plant in western Africa. The nature of the operations is such that the oil and gas environment is extremely dangerous and requires high levels of inventory and equipment availability regardless of challenging constraints. GRA has been engaged to develop and implement a Supply Chain Strategy to effectively and efficiently manage all elements of the diverse, global supply chain including the provision of goods and services in remote areas of western Africa. This is a long-term, on-going initiative.

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Supply Chain Network Optimisation 2

Our client wanted to identify opportunities for capital investment, options for lowering distribution costs and alternative manufacturing locations for particular product groups. Aggregated SKU’s and lack of sufficient representative data added complexity to the assignment. After baselining the current business and developing several optimised models we were able to identify the following opportunities: distribution cost reductions up to $2.3m pa (13.6%) without requiring changes to manufacturing or delivery contracts and a further $1m in savings through direct customer deliveries, changing the source of supply in the network and setting up alternative manufacturing facilities for a group of products.

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Testimonials

“GRA worked closely with our team to design, develop and deliver an end to end supply chain transformation. This involved implementing a demand-led supply chain that today drives a disciplined, integrated and effective S&OP process. Culturally, our organisation with help from GRA has significantly increased its awareness and appreciation for supply chain decision-making. The above has allowed us to improve our service levels & customer experience albeit whilst reducing inventory and supply chain operating expense.”

– Zel Medak , Regional Business Director (ANZ), 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)