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%