Supply Chain

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Supply Chain – Case Study

About our client:
Our client is an independent regional machinery and on-highway truck repair and servicing provider, servicing a wide range of brands in the earthmoving and trucking industries, including Kenworth, ISUZU, Caterpillar.

Major cost areas identified:
Consumables associated with servicing and repairs, such as oils, hoses, electrical harnesses, and filters.

Opportunities identified:
Cost reduction was possible through tendering of major segments of spend. We identified alternative suppliers for OEM and non-OEM alternative parts and consumables.

Approach:
We identified the relevant Australian standards and quality requirements from the client for the products and consumables and ensured that the agreements entered between our client and their suppliers reflected these requirements. We identified several supply disruption opportunities, where we used our global network of contacts to source like for like products for a reduced cost. All the while, we worked with the client to ensure their business had the appropriate systems in place to take full advantage of these opportunities.

Outcome:
Significant annualised savings for our client, more than 20% of the baseline costs.

  • Medium Sized business
  • Tender undertaken
  • Scope of Work Developed
  • Australian Standard KPIs
  • Contract Development
  • Approx. 20% saving on cost
  • Cash flow positive from day one
  • Increased margins for business