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Inventory Optimisation and Service Level Improvement by GRA

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GRA , an Australian supply chain and logistics management consultancy provided their services for a uniform and clothing supply organisation.

Key requirements of the client included analysis of its inventory position as well as a review of its inventory and performance management processes.  

The client faced various challenges including limited control over the supply chain, bureaucratic delays and lack of a forecasting system that impacted the overall performance of the business.  

The objective of the exercise was to achieve immediate and sustainable service level improvement within a resource-constrained environment in addition to inventory optimisation.  


  • Limited accountability for the performance of a supply chain of which the client had very limited control
  • Working within a heavily bureaucratic system that imposed significant administrative time to total lead time
  • Need to introduce forecasting to facilitate collaboration with suppliers who have capacity limitations in their manufacturing and significant lead times in their procurement of raw materials


GRA commissioned a multi-phase project aimed at identifying, implementing and realising the benefits in the following streams: 

  • Data quality and maintenance
    • Worked with the client to remediate incorrect data/parameter settings
    • Created online queries for ongoing self-maintenance
  • Workload reduction
    • Automated input of forecasting data and output of replenishment requirements including size distribution in accordance with core customer segmentation
  • Definition, documentation and implementation of processes, procedures and measures
    • Demand and replenishment planning based on history and market intelligence
    • Performance management covering process compliance, workload management and achieved outcomes
  • Staff professionalisation
    • Collective and individual training of staff covering supply chain theory, financial planning (including cost attribution) and process execution
  • Supplier collaboration
    • Vendor-based procurement schedules over 24-month periods


Key outcomes of the inventory optimisation and service level improvement project included: 

  • 70% reduction in understocked inventory and 85% increase in balanced inventory
  • Improved DIFOT performance from 90% to 96% with a 340% increase in transaction volume and 28% reduction in annual operating budget
  • Outcome-oriented standardisation of processes and robustness in process execution
  • Implementation of phased supplier deliveries are expected to reduce wholesale warehousing by up to 56%

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