Australian Defence Force Success with GAINS
GAINS Manages Largest Inventory Environment in Australia
$186 million reduction in inventory
42% reduction in warehouse items held
15% increase in service levels
GAINS was first implemented in the Royal Australian Air Force (RAAF) and then was expanded to the entire Australian Defence Logistics Command. Hit by budget cuts and the need to modernize, the RAAF initiated a project for their defense MRO supply chain to identify ways to improve service levels, reduce inventory costs and balance assets across their global distribution network. After an exhaustive worldwide software selection process, GAINS, was selected as the preferred solution.
Their first year of operations with GAINS resulted in:
- $186 million reduction in inventory (down from $675 million to $489 million)
- 42% reduction of warehouse items held
- 15% increase in service levels
- 67% reduction in under stocked items
- 37% reduction in overstocked items
- 47% increase in balanced items
- 70% reduction in inventory management workload
Defense MRO Supply Chain
The successful results that the RAAF achieved from the GAINS, triggered the interest of the Australian Defence Logistics Command to do the same with its other military branches in the defense MRO supply chain.
“ADL knew we had to do something different because we had aircraft grounded for lack of the right parts,” stated the Australian Defence Logistics Command (ADL) program director, “yet our government was telling us we had to reduce inventory. Even with the strong documentable performance of the GAINS at the RAAF, the ADL felt a legal responsibility to review the current state of other technologies before awarding a defense wide contract. We sent out detailed selection criteria and asked all of the major software vendors in the industry to bid on it.”
“What was clear was that the GAINSystems’ solution was still light years ahead of the competition. We awarded the contract to GAINSystems because they came closest to meeting all of our requirements and demonstrated the willingness to enhance their product to give us the extra bells and whistles that we needed,” stated the ADL Program Director.