Barbeques Galore

Barbeques Galore
Barbeques Galore
Bargeques Galore Improves Customer Service and Adds
Value to their Supply Chain with the Assistance of BCR
Company
Barbeques Galore
Industry
Commercial and Retail - Barbeques, outdoor furniture
Situation
Need to redesign parts of their supply chain to improve
customer service while reducing overall supply chain costs
Services provided
Freight forwarding, import & export, coastal shipping,
customs brokerage and consulting, off-shore warehousing
and consolidation
Result
Consistently met and maintained KPIs above 95 percent of
agreed targets & reduced rollovers of containers during peak
season to zero
CASE STUDY
BCR helped fast-track
Barbeques Galore?s
growth by introducing
freight and logistics
processes that were
heavily tailored to their
customer?s needs. Over
time, this delivered
exponential value for the
customer and paved the
way for long-term gains.
Overall savings of more than $5 million across reduced
shipping rates, better container detention terms, improved
container utilisation and off-shore warehousing and
consolidation
Key innovation
Single-invoice solution, customised P.O. Management
solution, customised landed costing tool, carrier and
supplier management, intra-Australia coastal shipping
Email contact@bcr.com.au | Phone 1300 663 227 | Web www.bcr.com.au
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Barbeques Galore
BCR creates a smarter supply chain and paves the way for long-term growth
Smart freight and logistics processes can often foster greater efficiency,
brand loyalty and business growth. But if managed incorrectly, these same
processes can damage customer relationships and threaten a company?s
bottom line.
Barbeques Galore was grappling with the consequences of managing its logistics
function in-house. The company, which manufactured, imported and distributed
barbeques, camping equipment and outdoor furniture across a nationwide retail
network, was buckling under a logistics process that failed to comply with customer
demand and store-specific promotions. Although the retailer was operating a
shipping department that handled imports from China and exports to the United
States, it was suffering from missed sales opportunities as a result of a fragmented
supply chain.
CASE STUDY
?As with all customers, we
were able to draw on our
expertise to deliver value
and help our customer?s
supply chains gain a
competitive edge.?
Robert Hunter, Director, BCR
At the same time, the retailer engaged BCR to provide export full container load
(FCL) services between Australia and the US, extending on an import less than a
container (LCL) service agreement from Taiwan and Hong Kong. BCR drew on
existing relationships with suppliers and carriers to streamline processes and create
efficiencies across the supply chain, a factor that optimised revenue while
strengthening brand loyalty and trust.
A business partnership built on trust
?The freight and logistics industry often suffers from a lack of trust,? says Rob
Hunter, Director of Sales with BCR. ?Because we were able to draw on our
negotiation powers to drive efficiency across the supply chain, we established our
credibility right from the beginning.?
Hunter also said that although the relationship started out small, it soon evolved into
a much larger partnership based on mutual trust. ?As with all customers, we were
able to draw on our expertise to deliver value and help our customer?s supply chains
gain a competitive edge.?
Craig Moore, the retailer?s supply chain manager, says that this trust in BCR was a
factor in the decision to cease domestic production and move manufacturing
overseas. ?We began importing from China and saw big shifts in our business when
we started shipping high-quality barbeques and also began importing premium
outdoor furniture. BCR was involved in discussions with all our suppliers early in this
transition in an effort to fine-tune processes ? it was exposed to commercially
sensitive information. It takes a lot of trust to ensure that a partner has your back.
BCR also suggested that we switch our east to west Australian freight to coastal
shipping instead of rail, which reduced our domestic transport costs ? proof of the
way they know our business and have our best interests at heart.?
Creating real-time visibility and improving data accuracy
BCR was then charged with handling customs clearance and import negotiations for
Email contact@bcr.com.au | Phone 1300 663 227 | Web www.bcr.com.au
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Barbeques Galore
FCL pathways ? a process that demanded a sharp understanding of key trade
lanes as well as pain points throughout the fulfillment cycle. It resolved this by
implementing an IT system that featured real-time shipment tracking along with
functionality that allowed the customer to produce commercial invoices, packing
declarations and letters of instruction. The new system also boosted data accuracy
by improving customs documentation and invoicing processes ? removing the
costly delays often encountered when working with many Chinese suppliers.
This new system also equipped the retailer with real-time visibility of the fulfillment
process, enabling it to detect problems early, integrate various parties and
anticipate conflicts well in advance. This capability was heightened with the
introduction of a full landed cost report for each shipment based on real-time data
? a powerful source of intelligence that provided insights on true costs and cost
variations while reducing mistakes down the track.
CASE STUDY
?BCR?s customised
Landed Costing tool brings
powerful business
benefits. Instead of trying
to guess and estimate, we
knew what our costs were
upfront and saved a lot of
time trying to reconcile
accounts. This also
avoided manual errors.?
Craig Moore, Supply Chain
Manager, Barbeques Galore
?BCR?s customised Landed Costing tool brings powerful business benefits. Instead
of trying to guess and estimate, we knew what our costs were upfront and saved a
lot of time trying to reconcile accounts. This also avoided manual errors,? says
Moore.
Towards an agile supply chain
The retailer ceased exportation from Australia to the United States and relocated
the majority of its production activity to China ? a move that saw import volumes
double while creating a major rift between shipping capability and in-store demand.
The retailer was also faced with rising seasonal pressures due to fulfillment
practices that weren?t designed to scale.
BCR recognised that more value could be added to the retailer?s supply chain with
improvements to their warehousing strategy, inventory management and container
utilisation. It addressed this by rolling out an offshore warehousing initiative that
saw stock manufactured from multiple suppliers in China consolidated in a BCR
global network facility in China before being shipped to warehouses across
Sydney, Perth, Melbourne and Brisbane.
?Previous to the rollout of the offshore warehousing initiative, stock was being sent
directly from each supplier to Australia which meant that containers were not being
fully utilised,? says Holger Schaurig, Head of Contract Logistics for BCR. ?We
solved this issue by consolidating stock into two warehouse facilities in China. We
then packed full containers with mixed SKUs from multiple suppliers for forwarding
to the Sydney, Perth, Melbourne and Brisbane facilities. In addition to improved
warehouse and inventory performance, this initiative reduced the cost of Australian
linehaul freight.?
This move improved container utilisation from 80 per cent to 86.3 per cent and cut
inter-warehouse movements between facilities. ?We were able to reduce stock outs
and increase service levels by consolidating offshore which improved container
utilisation into our Sydney, Perth, Melbourne and Brisbane warehouses,? says
Moore. ?We also benefited from a steady replenishment pipeline coming from the
BCR global network of warehouses in China.
Email contact@bcr.com.au | Phone 1300 663 227 | Web www.bcr.com.au
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Barbeques Galore
Electronic Data Interchange (EDI) integration between BCR?s warehouse
management system (WMS) and the retailers enterprise resource planning system
(ERP) further improved their supply chain?s performance as the SKUs located in the
offshore warehouse appeared as an additional stock point in their system, which
meant the retailer could make strategic decisions from where to fulfill shipping
orders, either from a domestic or an offshore facility. Thus, they were able to make
strategic decisions and adopt an agile approach to their business
?Getting the right product to the right destination at the right time is key. Improved
inventory management processes meant that we could respond a lot quicker to
peaks and troughs in the market. In some instances, this reduced the customer lead
time from three months to three weeks? says Moore.
In addition, BCR rolled out purchase order management, bringing new efficiency
across the shipment-tracking process.
CASE STUDY
?Getting the right product
to the right destination at
the right time is key.
Improved inventory
management processes
meant that we could
respond a lot quicker to
peaks and troughs in the
market. In some
instances, this reduced the
customer lead time from
three months to three
weeks.?
Craig Moore, Supply Chain
Manager, Barbeques Galore
A strategic partnership
Ultimately, BCR helped fast-track the retailer?s growth by introducing freight and
logistics processes that were heavily tailored to their customer?s needs. Over time,
this delivered exponential value for Barbeques Galore and paved the way for
long-term gains.
BCR Australia Pty Ltd
New South Wales
39 Doody Street
Alexandria NSW 2015
T +61 2 8396 0000
F +61 2 8396 0099
Victoria & South Australia
18 Derrimut Drive
Derrimut VIC 3030
T 1 300 663 227
F +61 3 9644 9999
Queensland &
Northern Territory
71 Charles Ulm Place
Eagle Farm QLD 4009
T 1 300 663 227
F +61 7 3860 8599
Western Australia
16 Bailing Street
Cockburn Central WA 6164
T 1 300 663 227
F +61 8 9354 6499
Email contact@bcr.com.au | Phone 1300 663 227 | Web www.bcr.com.au
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