Video Case Study: Nuplex Supply Chain Transformation

GRA’s James Allt-Graham and Shanaka Jayasinghe, along with Allnex's (formerly Nuplex’s) Regional Supply Chain Manager, Brad Hurst, presented a case study to the 2017 SMART Conference.

The case study presentation Supply Chain Transformation: Delivering financial benefits and increased capabilities in a globalised manufacturer detailed a recent supply chain transformation program undertaken by one of Australia’s most significant manufacturing organisations–Nuplex.

The presentation outlined Nuplex’s organisational background and strategic imperative, including:

•    Global business with increased lead times and complexity
•    Underinvestment in supply chain capabilities
•    Need to reduce costs
•    Need to innovate and drive increased value for customers

Following the exploration and analysis of the above situation, a transformation program was developed and executed. The program was based on:

•    New Systems (Demand Planning, MRP, DRP and RF in the warehouse)
•    New processes (Integrated SOP and supporting executional processes)
•    Change management
•    Project Management across Australia and NZ in a global business
•    Benefits needing to be delivered as the program was implemented–self funding

The presenters outlined:

•    What worked well and why
•    What lessons were learned
•    What are the next strategic steps for Nuplex’s supply chain

The video presentation concludes with a Q&A session with the audience.

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GRA’s knowledge of the best practices in the end-to-end planning process is very impressive. With our Class A accreditation, Simplot already has an above average S&OP process embedded within the company, but GRA were able to suggest tangible improvements that will hopefully take Simplot to the next level in planning strategy and execution.

– Danny Mellon, GM Planning, Logistics & Procurement, Simplot

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)