Logistics Execution

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Warehouse Operations Review

Our client, an international manufacturer and distributor of pharmaceutical and medical products, supplies the Australian and New Zealand markets with approximately 700 products sourced from their factories in Europe and the USA. In order to support their growth plans, the client engaged GRA to review their current warehouse operations in order to understand whether they were capable of supporting their business for the next 3 years and beyond. Solutions were proposed to improve operational workflows and productivity (reducing labour costs by 17.5%), handle products more effectively and extend the life of the current facility to the medium-term.

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Detailed Warehouse Design

Our client commissioned the project to design their new Reel Store at Botany, NSW as a result of the construction of a new state-of-the-art manufacturing line and operating software upgrade. A new Reel store design was required to accommodate the significant future increase in production volumes. A key objective of this study was to identify design solutions to minimise known hazards and risks while simultaneously ensuring maximum utilisation capacity, improved process and productivity. Our assessment identified optimum layout focussing on operating processes, travel distances, and safety. Loading zone and internal driveway locations were identified to minimise impact on capacity and reduce hazards while maintaining council and regulatory compliance.

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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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Warehouse and Distribution Review

Our client, a global organisation with a large warehouse & distribution network, asked GRA to review their current 3PL service provider and manage new contract negotiations. In addition, our client's physical network also required rationalisation. GRA analysed the market best practice options for alternate network models, warehouse positioning and transport services and assessed the 3PL incumbent provider proposal. Ultimately we helped our client achieve a $7m+ savings per annum through renegotiation. In addition, their network was rationalised from 7 warehouses to 3 and fixed transport changed to shared distribution network. The outcome included a total contract reduction of 25-30% with a phased implementation, delivering savings during the final period of the existing contract with minimal risk to customer service.

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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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4PL Contract Improvement & Warehouse Efficiency Review

Our client, a multinational manufacturer, distributor and retailer of bicycles, is largely a marketing organisation, with outsourced warehousing and transportation to a fourth party logistics provider. Recently, a range of issues between our client and the 4PL arose where our client’s costs were higher than expected. Service issues were being experienced and changes in systems were required. GRA was engaged to conduct an end-to-end review of processes to identify improvement opportunities and to assist in stabilising the performance of the contract. The project led to a number of key changes in the way the contract operated, processes between the parties and operations in the warehouse.

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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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Testimonials

"GRA has been working with us off and on for over four years... I wouldn’t hesitate to recommend them."

– Scott Coulter, Chief Operating Officer, Comvita

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)