SNAP Fresh, a QANTAS owned manufacturer and distributor of freshly frozen meals, is moving towards a 15% cost and efficiency savings in its supply chain following consulting work undertaken by GRA .
Mark Trundle, General Manager of Snap Fresh, said that in late 2004 Snap Fresh opted to use outside expertise to help address its "relatively high" distribution costs.
The cost and supply chain performance pressures became more pronounced when QANTAS reintroduced hot meals on its domestic service and subsequently doubled Snap Fresh's sales volumes.
Supply chain consultancy GRA won a selective tender for the assignment and provided advice that will see a 15% savings achievable by early 2007.
Mr Trundle said that 4-5% savings had already been achieved and another 5% was "close" (by year end) depending on capital equipment go-aheads.
GRA assessed Snap Fresh's planning processes, stock holding procedures, handling/delivery costs and service level agreements.
The savings are being delivered via recommended enhancements to Snap Fresh's stocking strategies, supply chain and distribution channel configuration, planning processes and planning systems.
Snap Fresh distributes to seven key sites in Australia, which are all QANTAS in-flight DCs or associated warehouses.
Snap Fresh's clients include QANTAS and its subsidiary carriers such as JetStar, plus British Airways, South African Airways and Air Pacific.