Qantas: Savings of 15% from GRA

GRA worked with Snap Fresh, a subsidiary of Qantas, to achieve some significant supply chain savings as reported in Food Management News.
Below is an extract from the article:

Qantas is moving towards 15 per cent cost and efficiency savings on its supply chain distribution for one million meals a month produced at its value-adding in-flight Snap Fresh offshoot at Logan City, Queensland.

This follows an in-depth assignment successfully completed for the carrier by a leading consultant in demand, inventory and supply chain optimisation, GRA.

Mark Trundle, general manager of Snap Fresh, told FMN that four to five per cent savings had already been achieved and another five per cent was "close" depending on capital equipement go-aheads.

"We are happy with the GRA work and would use the company again," he added...

..."Trundle said GRA assessed Snap Fresh's stock holding procedures, its revenue information and handling/delivery costings. He said that following the GRA advice, the 15 per cent savings were achievable."

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Testimonials

"GRA put together a very knowledgeable and experienced team for us and worked through the complex problem we put to them methodically and in a very practical way. They gave us a good position to make our decisions for the way forward. Besides the professionalism displayed, the GRA team was very approachable and easy to work with."

– Joris Dorsman, General Manager Supply Chain, Chobani Pty Ltd

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)