Service Parts / MRO

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Asset Acquisition Strategy (Spares List Determination)

Our client is responsible for managing and providing engineering and supply chain sustainment support for an aviation system. An operating system had been introduced into service and due to regular demands for spares that could not be fulfilled (as they were not on the original spares acquisition list) was at risk of not achieving Full Operating Capability. GRA assisted the client to develop a spares buy list. Our client made use of GRA’s suggested spares buy list and recommended inventory management settings to make a one off acquisition buy to address the ‘nil stock’ issue. Once the spares acquired came into stock, the demanded spares fulfilment rate to the operator dramatically improved and the system achieved Full Operating Capability on schedule.

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Asset Acquisition Strategy (Test Equipment Options Development)

Our client is responsible for managing and providing engineering and supply chain sustainment support for an aviation system. A major component of the Support and Test Equipment (S&TE) system was due to become obsolete, with a limited window to make an acquisition decision for the number of replacement (upgraded model) units and associated test program sets. GRA assisted the client in making a timely acquisition decision with in depth analysis and modelling of future state scenario options. Our support to the client and recommendations enabled them to make a well informed decision within the limited time window, to satisfy the procurement lead time requirement and mitigate a high risk with significant consequences.

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Asset Acquisition Strategy (Logistics Support Concept Review)

Our client is responsible for managing and providing engineering and supply chain sustainment support for an aviation system. Following a series of acquisition decisions and challenges a comprehensive review of the sustainment support strategy was undertaken by GRA. We identified 30 components that may be impacted or warranted a review; assessed each component prioritising findings for a ‘deep dive’ analysis based on impact to the system and support costs; conducted a detail analysis of nine support strategy components; and recommended options with an assessment of trade-offs and impact on cost and system outcomes under each option.

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Supply Chain Strategic Review

Our client is an after-market and OEM four-wheel drive equipment manufacturer in Australia and Asia distributing into global markets. They faced many supply chain challenges, including sales split between Australia and the rest of the world, customer service and 'closeness to supply' expectations not being met, and planning and operations management processes not fully integrated and aligned. GRA undertook a strategic review of our client's supply chain and delivered a clear roadmap of organisational capability improvements to provide immediate improvements, opportunities to optimise inventory and quantified current and proposed models that clearly illustrate the cost and structural benefits of an alternate supply chain strategy and design.

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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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Warehousing and Distribution Network Strategy 2

Our client, a national airline, maintains a fleet of aircraft operating in Australia and around the world. Their existing Warehousing and Distribution (W&D) network had been in place for over 10 years and our client wished to develop a new W&D strategy that could continue to meet service needs and operating cost constraints. GRA established a set of W&D “design principles” to guide the review, determined the nature & drivers (including repair locations) of expendable & rotable demand and outlined the impact new aircraft types would have on the network. GRA development of a range of alternate supply chain network strategies along with a recommendation that will maintain the service promise; reduce annual operating costs by 34%; and reduce the target inventory by 5%.

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Strategic Warehouse Review 3

Our client provides air navigation services across Australia. With significant changes expected in the coming years, they had become concerned about their existing warehousing capability and supporting logistics operations, as well as their ability to support their current and future requirements. By evaluating the company's warehousing capability, supporting logistics operations and requirements, GRA developed optimal warehousing options that would support their current and future requirements. 

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Organisational Design and Restructure

Our client is a national rail organisation that operates and maintains a large fleet of locomotives and wagons. Operating cost reduction pressures led to an end-to-end supply chain review. The review spawned a multi-year Supply Chain Transformation Program with the restructuring of the Supply Chain organisation at the core of the transformation. GRA developed a new supply chain organisational structure covering: Supply Chain Design & Governance, Supply Chain Planning, Procurement and Supply Chain Operations. 

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Testimonials

“GRA made sense of the complex issues facing our parts and service operation. They identified a clear strategy and road map to move us towards best practice that would support our current and future growth. They understood the complex technical and process side of the business and communicated solutions in a clear and effective way. Working side by side with GRA was an enjoyable experience.”

– Jean-Marc Julien, National Parts Manager, Renault 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)