Operational Planning

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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 An ERP upgrade was in progress to replace an outdated and unsupported ABB Ellipse system version.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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Supply Chain Planning Integration Improvement

Our client,a large FMCG dairy manufacturer with approximately 85% of its volumes being delivered to the major supermarket retailers was experiencing significant growth. In order to service this growth profitably, the manufacturer was looking for the optimal way to collaborate with the retailers to improve the accuracy and velocity of its planning processes. We worked with our client to achieve the following outcomes: safety stock days cover was reduced by a quarter; high service levels and low write off cost were maintained despite lower inventory; increased visibility of the promotions, leading to better collaboration when comparing forecasts; improved low stock allocation processes; faster planning cycles effectively leveraging the planning already performed by the retailers.

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Engineering and Maintenance Operating Model

Our client is Australia’s largest rail freight operator, providing customers with integrated freight and logistics solutions across an extensive national rail and road network. As part of the organisation’s transformation program, the Engineering & Maintenance function implemented a new operating model that changed the way engineering, maintenance, reliability and supply chain outcomes were delivered. Realisation of the full benefits of the new operating model were at risk due to a range of difficulties. Successful outcomes of the project included the development of a range of agreed processes for maintenance planning, management reporting, diagnosing maintenance schedule adherence, engineering change management, updating and maintaining equipment structures as well as a framework for cleansing SAP engineering & maintenance master data – including SAP Task Lists and BOMs.

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Operations Review

Having grown rapidly since being established, our client, a stationery wholesaler and online retailer, had outgrown their current operations and were concerned about their ability to support anticipated future growth. GRA was engaged to review their current warehousing operations and planning processes in order to identify the capability and improvements required to support the business in both the short-term and long-term. Our assessment identified two critical junctures for the business to plan towards – one within the current year, the other longer term.

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Planning Assessment

Our client, a manufacturer and distributor of food solutions, had doubled their revenue within the last seven years, so were looking for opportunities to ensure their systems and processes were able to support their continued growth. Additional challenges our client faced included a recently implemented ERP system that was not being leveraged to drive purchasing requirements, unclear roles & responsibilities, multi-level substitutable BOM components, a high proportion of product innovation and introduction, and a high supplier volatility. GRA was engaged to review their current supply chain and develop a roadmap that would deliver the required improvements. 

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Inventory Optimisation, Demand & Replenishment Planning 3

Our client was looking to reduce and optimise inventory in Retail Stores and Distribution Centres, while improving in-stock position and service levels. GRA was commissioned to implement an advanced inventory planning system as well as re-engineered processes and practices to support the new tool. After the successful implementation the client realised a 6.6% reduction in inventory across the network in 3 weeks, 18% inventory reduction in Distribution Centres and Customer Fulfilment Centres in 3 weeks, 11% reduction in Excess Stock for ranged lines whilst experiencing no negative impact on customer service levels or in-stock position.

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Demand Planning & S&OP Review

Our client is a national producer of dairy drinks, food and fruit juice for industry and retail channels. They were facing significant challenges maintaining acceptable service levels to customers with customers threatening to de-range various products if service levels did not improve. Our client sought help to review their demand planning processes and tools with a view to identify improvement opportunities. Quantified savings identified included up to $23M reduction in inventory holdings, service level improvements from 87% to 98% and a reduction of damaged and dated (D&D) products from $32m to $15m.

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Planning & Warehouse Operations Review

Our client is a vertically integrated food and logistics business. Their core business is as an online, direct-to-home retailer of fresh food and grocery product. The company was embarking on an organisation wide transformation with the objectives to raise customer numbers, average basket size, and optimise costs. As a result they engaged GRA to review the appropriateness of the current supply chain, its warehouse operations, transport, planning, procurement and network from a cost, service and growth perspective. The outcome was a workshopped roadmap of a series of recommended Process and Systems changes in the areas of the warehouse operations and demand, inventory and replenishment planning. This Roadmap factored in the business’s growth strategies and provided a practical approach on the key enablers that would allow the client to deliver to the roadmap. 

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"GRA worked closely with us to develop a comprehensive supply chain strategy to strengthen our business in a rapidly changing retail landscape. The level of interaction and engagement with our team was exceptional, ensuring a high degree of buy-in for the strategy."

– Brett Kelly, National Supply Chain Manager, Officeworks

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)