GRA supply chain consultants, has won the Australian Defence Force inventory software and supply chain consulting contract on the strength of delivering a documented $186,000,000 inventory reduction with a sustainable service level increase of 15+ percentage points within the RAAF.

GRA, a specialist demand, inventory and supply chain optimisation consulting firm, won a multi-year contract to provide inventory management services and implement GAINS, a best-of-breed inventory optimisation system, across the whole of the Defence Force.

The actual results achieved by the RAAF, a GRA and GAINS client since 1995, triggered the Defence Force-wide implementation. In fact the RAAF was so impressed with our service that a Certificate of Appreciation was awarded in recognition of “GRA’s outstanding contribution to the optimisation of the ADF’s aviation inventory”.

Some of the key results delivered to the RAAF include:
• $186M reduction in inventory (down from $675M to $489M)
• 42% reduction of the number of items held in RAAF warehouses
• 15+ percentage point increase in service levels
• 67% reduction in understocked items, 47% increase in balanced items and 37% reduction in overstocked items
• 70% reduction in the starting inventory management workload
• importantly – successful culture change

After a successful trial within the Royal Australian Navy, the Defence Force sponsored the tri-service implementation in order to realise the immense defence-wide benefits offered by GAINS.

Under the defence-wide implementation, GAINS will be managing the single largest inventory environment in Australia, which includes:
• $3 billion worth of inventory comprised of 1,500,000+ items (consumables and rotables) sourced from thousands of suppliers
• $500,000,000+ inventory spend per year
• a nationwide distribution network of 75 stocking locations
• consumables, spare parts and repairables
• a broad range of inventory types including aeronautical (jets, propeller planes & helicopters), automotive (trucks, tanks, off road and attack vehicles), marine (ships and submarines), electronics, safety equipment, communications, office, clothing and medical supplies GAINS will be managing inventory types ranging from commercially available automotive spares for the Army truck fleet to highly specialised parts for fighter aircraft engines and the ANZAC frigate’s radar system.

Defence pharmaceuticals inventory is also being managed by GAINS, as another GRA client – Mayne Health – is providing this service to the Defence Force.

The Defence Force-wide implementation, which is under way, is projected to deliver substantial cost savings and performance improvements. Based on the actual RAAF results achieved to date, a $300,000,000 inventory reduction is anticipated within Defence’s $1.3 billion consumables inventory segment.

GRA ’s success and on-going partnership with the Defence Force has been underpinned by its:
• customer service ethic
• ability to consistently and quickly deliver proven results
• unique and successful approach to culture change, which ensures that the results are sustainable – a key point of difference, particularly in Defence
• extensive knowledge and expertise in Supply Chain

Management, both at the theoretical and practical levels, encompassing the simplest to the most complex issues.

The Defence Force’s decision to implement across the tri-services was based on proven results.

GRA supply chain consultants congratulated Super Cheap Auto on its impressive half year results recently announced to the stock market.

Highlights achieved by the Group for six months to Dec 07 include:

• Group Net Profit After Tax up by 38% over PCP
• Group EBIT up by 36% over PCP
• Group sales up by 17% over PCP
• Effective working capital management kept net debt low ($9.3 million increase) relative to new store and refurbishment investment of $30.9 million.

The company's strong profit performance was driven by top-line growth, gross margin improvement, cost control and tight working capital management. 

Super Cheap Auto employs GRA's consulting services and uses the GAINS forecasting and planning tool. 

GRA and Super Cheap Auto Group have been invited to deliver a joint presentation to the delegates of this year’s SMART Conference. The case study, to be presented by Super Cheap’s Merchandising Operations Manager Christine Ogden and GRA’s Partner Carter McNabb, will detail:

1. The demand and supply chain management issues confronted by Super Cheap’s rapidly growing business
2. How the company addressed these challenges from a people, processes and systems perspective
3. The results achieved

Super Cheap’s challenge was to get over 10,000 products across more than 230 stores and five distribution centres to the right place, at the right time, in the right quantity at the lowest possible cost, while the company continued to open stores at the rate of two per week. The need to plan inventory accurately to meet service levels at the lowest cost became a critical success factor.

The presentation will explain how the following contributed to ensuring a successful outcome:

1. The implementation of the advanced planning system GAINS
2. The redesign of processes and policies to take advantage of GAINS
3. Effective coach mentoring of the planning team

The results of this project were and continue to be outstanding: In one year to July 2006, inventories reduced by 12% (equating to a $16.2 million reduction across 234 stores), contributing a $12 million cash flow benefit, and service levels improved – and all in a depressed retail sales environment where many competitors struggled.

About GRA
GRA is an expert supply chain consulting firm specialising in demand, inventory and supply chain optimisation. We combine expert knowledge with best-of-breed planning and optimisation systems to take your supply chain to the next level. Our experience is your experience, and we work side-by-side with our clients to ensure change is successful and benefits are sustainable. Guaranteed results are typically delivered within 8-12 weeks, and we aim for a minimum 3:1 ROI.

About the SMART 2007 Conference
More than 70 leading local and international speakers will share their knowledge and experience of the latest supply chain technologies and implementation at the Smart 2007 Conference, 20-21 June at Sydney Convention and Exhibition Centre, Darling Harbour. This year’s Smart Conference program - themed Supply Chain - The Engine for Growth – is complemented by a range of activities including workshops, site visits, an Education Forum and a variety of social and networking opportunities. Established in 1993, Smart Conference takes places once every two years and has steadily grown in attendance and reputation. At the last conference - held in 2005 - more than 900 delegates from six countries attended.

Hagemeyer North America has chosen demand and supply chain planning system GAINS to profit optimise their U.S. supply chain. Hagemeyer North America is a leading value-added B2B distributor of products and services with hundreds of locations across Canada, Mexico, and the United States.

Hagemeyer chose the user-friendly inventory software GAINS solution because of its ability to optimise costs and service levels, handle millions of items, and forecast slow-moving lines.Bruce Lodge Hagemeyer’s U.S. Director of Inventory Management said:

“We are looking to GAINS to help us maintain our already high service levels but with greater efficiency and less inventory. GAINS will also enable us to reduce our workload in planning, purchasing, and warehousing operations.”

Hagemeyer, already a leader in the distribution industry, recognised additional areas for improvement in optimising their supply chain, including inventory sharing and cross docking. They selected the GAINS solution to address these areas, and help take their supply chain to the next level.

About Hagemeyer
With sales in excess of US$1.5 billion, Hagemeyer is a business-to-business distributor of services and products focusing on the industrial MRO (Maintenance Repair and Overhaul), safety and electrical markets with 400 plus locations throughout North America. www.hagemeyerna.com

About GAINS
GAINS is a ‘best-of-breed’ demand, inventory and supply chain planning and optimisation system. GAINS’ unique planning capabilities enable businesses to optimally balance the 4 C’s - Capital, Costs, Capacity and Customer service levels. GAINS enables management by exception and provides powerful, fact based decision support at the strategic, tactical and operational levels. GAINS is a time-tested solution with the proven ability to rapidly deliver results and create additional value within the supply chain.