Form Submitted

The Importance of Effective Project Management for Supply Chain Projects

In today's fast-paced and interconnected world, supply chain management has become an essential aspect of businesses across the globe. From raw material procurement to product delivery, supply chain management involves multiple stakeholders, processes, and systems, making it a complex and challenging undertaking. Therefore, it is crucial to have effective project management in place to ensure the success of supply chain projects. In this blog article, we will explore the importance of effective project management for supply chain projects and the benefits it brings to businesses.

Firstly, knowing the subject matter and functional area is crucial for project managers managing supply chain projects. Supply chain projects are complex and involve multiple stakeholders, including suppliers, manufacturers, distributors, and customers. Therefore, having a deep understanding of the subject matter and functional area is vital to ensure the project's success. A project manager with expertise in supply chain management can identify potential risks, anticipate obstacles, and devise strategies to overcome challenges. They can also establish effective communication channels with suppliers and stakeholders, which can facilitate the project's progress. In short, a project manager's knowledge of the subject matter and functional area is critical for ensuring that supply chain projects are completed on time, within budget, and to the satisfaction of all stakeholders.

‍

1. Ensuring Timely Completion

Effective project management ensures that the project is completed on time, meeting the delivery deadlines. In supply chain projects, timely completion is crucial as it impacts the entire supply chain, from suppliers to customers. Late delivery of goods can lead to lost sales, customer dissatisfaction, and reputational damage. Therefore, project managers must manage the project schedule, monitor progress, and identify potential delays to take corrective actions.

2. Managing Project Risks

Supply chain projects involve multiple risks, such as supply disruptions, quality issues, and transportation delays. Effective project management helps identify potential risks and develop contingency plans to mitigate them. Project managers can also monitor the risk environment and adjust the project plan as needed to ensure the project's success.

3. Controlling Project Costs

Effective project management helps control project costs by monitoring expenses, identifying cost-saving opportunities, and developing budget forecasts. In supply chain projects, managing costs is critical as it impacts the entire supply chain's financial performance. Project managers must ensure that the project stays within budget, avoid cost overruns, and identify opportunities for cost savings.

4. Collaborating with Stakeholders

Supply chain projects involve multiple stakeholders, such as suppliers, logistics providers, and customers. Effective project management fosters collaboration among stakeholders, ensuring that everyone is aligned with the project's goals and objectives. Collaboration leads to better communication, improved decision-making, and reduced project risks.

5. Improving Project Quality

Effective project management helps improve project quality by establishing quality metrics, monitoring quality performance, and taking corrective actions when necessary. In supply chain projects, quality is crucial as it impacts the entire supply chain's performance. Project managers must ensure that the project meets quality standards, reduce defects and errors, and improve the overall product and service quality.

Effective project management is crucial for the success of supply chain projects. It ensures timely completion, manages project risks, controls project costs, fosters collaboration among stakeholders, and improves project quality. With effective project management, businesses can achieve their supply chain goals, enhance their supply chain performance, and gain a competitive advantage in the marketplace.

Contact us today, trace. your supply chain consulting partner.

The rise of digital transformation has led to an increased demand for automation and efficiency in business processes.

Microsoft Power Platform, a low-code development environment, has emerged as a popular tool for businesses to build custom applications and automate workflows. In this article, we will explore how the suite of Power Platform applications are replacing Excel and automating supply chain processes in a cost-effective way.

Excel has been a trusted tool for businesses to manage data and perform calculations for decades. However, as businesses have grown in complexity, Excel has started to show its limitations. Excel requires manual data entry, and as the volume of data grows, it becomes more challenging to manage and process the data accurately. Additionally, Excel lacks the ability to automate workflows and integrate with other systems, leading to inefficiencies and errors.

The Microsoft Power Platform suite of applications, including Power Apps and Power Automate, provide a solution to these limitations by allowing businesses to build custom applications that can automate workflows, integrate with other systems, and manage data effectively. With Power Apps, businesses can create customised forms, dashboards, and reports that can be accessed by users across the organisation. Power Apps enable businesses to digitise manual processes and improve visibility into their operations, leading to better decision-making and increased efficiency.

Supply chain processes are an area where Microsoft Power Apps can provide significant benefits.

Supply chain management involves the coordination of activities from procurement to delivery, and often involves multiple parties, such as suppliers, manufacturers, distributors, and retailers. These processes are often complex, and require accurate and timely data to ensure the efficient movement of goods.

Power Platform can help automate and streamline supply chain processes by digitising manual processes and integrating with other systems. For example, businesses can use Power Pages to create custom forms for suppliers to submit purchase orders, which can then be automatically routed to the appropriate departments for approval. Power Apps can also integrate with other systems, such as inventory management and transportation management systems, to provide real-time data and visibility into the supply chain.

Power Platform and supply chain analytics.

Power BI can be used to create custom dashboards and reports that provide insights into key performance indicators (KPIs) such as inventory levels, lead times, and on-time delivery rates. These KPIs can be used to identify areas for improvement and make data-driven decisions to optimise supply chain processes.

Power Automate and Dataverse are replacing Excel as a tool for managing data and automating workflows. Together with Power BI, they provide businesses with the ability to digitise manual processes, integrate with other systems, and provide real-time data and visibility into their operations. In the context of supply chain management, Power Applications can provide significant benefits by automating and streamlining processes, providing analytics and insights, and improving decision-making.

‍

‍

Power Automate and Demand Planning & Replenishment

Microsoft Power Automate is a powerful tool that enables businesses to automate repetitive tasks and processes. In the context of demand planning and replenishment, Power Automate can be used to replace Excel and provide more efficient and accurate processes. Let's explore how Power Automate can be used in demand planning and replenishment.

Demand planning is the process of forecasting customer demand for a product or service. The objective of demand planning is to ensure that the business has the right amount of inventory to meet customer demand without overstocking. In many organisations, demand planning is still performed using Excel, copying and pasting data from multiple systems. However, as the volume of data has grown, the limitations of Excel have become more apparent. Excel requires manual data entry and is prone to errors, leading to inaccurate forecasts.

Power Automate can automate the demand planning process by integrating with other systems and automating data entry. For example, Power Automate can be used to automatically import sales data from a point-of-sale system, eliminating the need for manual data entry. Power Automate can also be used to automate the process of updating forecasts, reducing the risk of errors and ensuring that the business has accurate forecasts. From a replenishment perspective, Power Automate can be used to automatically generate purchase orders based on a set of pre-defined business rules, improving the efficiency of the process and allowing planning team members to concentrate efforts on more important products.

Power Pages ability to capture and automate external data capture and reporting

Another component of Power Platform is Power Pages, which allows users to create customised, low-code websites that can capture data from external stakeholders, such as suppliers and customers, and generate automated communications and reporting. For example, a custom Power Page can be created to capture data from suppliers regarding purchase orders, delivery dates, and inventory levels. The data can be automatically integrated with other internal systems, such as inventory management or transportation management systems, to provide real-time data and visibility into the supply chain.

Once the data has been captured, Power Pages can generate automated communications, such as purchase order confirmations, shipping notifications, and invoices. These communications can be customised to meet the specific needs of the business and can be sent automatically to the appropriate teams, reducing the need for manual data entry and communication.

Low-code applications to improve supply chain processes will continue to grow

With current high levels of inflation and uncertainty, businesses have become more cautious with investments, including large, expensive IT upgrades. However, staying stagnant creates its own risks, including becoming unproductive and falling behind the competition. In this environment, low-code environments such as Microsoft Power Platform provide an opportunity for businesses to keep improving their supply chain processes without significant investment in time and effort to implement proprietary software or upgrade ERP systems.

Contact us today, trace. your supply chain consulting partner.

Queen's Wharf, Brisbane

‍

The trace. team are honoured to partner with The Star Entertainment Group to implement a supply chain operating model that will help shape one of Queensland’s most iconic tourist and entertainment destinations - The Star's Queen's Wharf Brisbane. Together in partnership with Shaun Micallef, Senior Manager of Supply Chain - Brisbane and his team, trace. are helping to implement safe and efficient supply chain operations for the Food & Beverage, Hotels, Consumables, Residential and Retail Outlets that will improve service, enhance supplier collaboration, minimise cost to serve, and contribute to mitigating safety & congestion risks.

As part of the program the trace. team have contributed to the design, development and implementation of a range of new processes and technology solutions for the supply chain operations of the new precinct.

"It is an exciting time for Queensland, particularly with Queens Wharf Brisbane and its surrounding infrastructure coming online well ahead of the 2032 Brisbane Olympics. We are supporting the Pre-Opening team at The Star to deliver an end to end supply chain operating model that is transformative in nature for the Hospitality industry. trace. are helping to shape the supply chain infrastructure and operational capabilities for the future F&B & Hospitality Outlets - touching on all areas from planning, ordering, receipting, processing, storage, supplier management, and KPI reporting." said Shanaka Jayasinghe, Partner at trace.

About trace.

trace. is a leading supply chain solutions provider committed to helping businesses optimise their supply chain operations through innovative processes and advanced technology. With a focus on safety, efficiency, and collaboration, trace. partners with organisations across various industries to deliver tailored, end-to-end solutions that drive success and growth.

Contact us today, trace. your supply chain consulting partner.

Asset management and supply chain management are two critical components of any organisation's success, including universities.

Universities have a vast array of assets that they need to manage effectively, including buildings, equipment, technology, and personnel. They also need to manage their supply chain to ensure that they have the resources they need to operate efficiently. These requirements across assets and supply chain can vary significantly by Faculty.

In this blog article, we will explore the intersection of asset management and supply chain management for universities and discuss some best practices for managing both effectively.

‍

Asset Management for Universities

Asset management for universities is the process of tracking and maintaining the physical assets of the institution. This includes everything from buildings and land to equipment, furniture, and technology. Effective asset management is essential to ensure that universities have the resources they need to provide high-quality education and research.

One of the key challenges of asset management for universities is tracking the location and condition of assets. Universities often have multiple campuses and departments, which makes it difficult to keep track of where assets are located and who is using them. Additionally, assets can wear out or become obsolete, which requires universities to plan for replacement or repair.

To overcome these challenges, universities should implement an asset management system that includes:

1. Asset tracking: Universities should use a system that allows them to track the location and condition of assets in real-time. This can be accomplished using barcodes, RFID tags, or GPS technology.
   ‍
2. Maintenance schedules: Universities should have a maintenance schedule for each asset to ensure that it is kept in good condition and replaced when necessary.
   ‍
3. Budget planning: Universities should plan for the replacement or repair of assets in their budget to ensure that they have the resources they need when assets reach the end of their life.

Supply Chain Management for Universities

Supply chain management for universities is the process of managing the flow of goods and services from suppliers to the institution. This includes everything from purchasing office supplies to contracting for construction projects. Effective supply chain management is essential to ensure that universities have the resources they need to operate efficiently.

One of the key challenges of supply chain management for universities is managing multiple suppliers and contracts. Universities often have a large number of suppliers, which makes it difficult to manage contracts and ensure that they are getting the best value for their money.

To overcome these challenges, universities should implement a supply chain management system that includes:

1. Supplier management: Universities should have a system for managing their suppliers, including contracts, performance metrics, and communication protocols.
   ‍
2. Budget planning: Universities should plan for their supply chain needs in their budget to ensure that they have the resources they need to operate efficiently.
   ‍
3. Procurement policies: Universities should have clear procurement policies that outline the process for purchasing goods and services and ensure compliance with regulations and ethical standards.

The Intersection of Asset Management and Supply Chain Management for Universities

The intersection of asset management and supply chain management for universities is where these two processes come together. Effective asset management is essential to ensure that universities have the resources they need to operate efficiently, and effective supply chain management is essential to ensure that they have the resources they need to maintain their assets.

‍

To optimise the intersection of asset management and supply chain management, universities should:

1. Integrate asset management and supply chain management systems: Universities should integrate their asset management and supply chain management systems to ensure that they are working together effectively.
2. Plan for asset replacement and procurement: Universities should plan for the replacement of assets in their procurement policies to ensure that they have the resources they need to replace assets when necessary.
3. Monitor performance metrics: Universities should monitor performance metrics for both asset management and supply chain management to ensure that they are meeting their goals and making continuous improvements.

Asset management and supply chain management are critical components of any organisation's success, including universities. By implementing effective systems and best practices, universities can ensure that they have the resources they need to provide high-quality education and research for their students and faculty. Integration of asset management and supply chain management systems, planning for asset replacement and procurement, and monitoring performance metrics are essential for universities to optimise the intersection of asset management and supply chain management. By doing so, universities can operate more efficiently, reduce costs, and ensure that they have the resources they need to continue their mission of educating the next generation of leaders.

Contact us today, trace. your supply chain consulting partner.

Exploring the MRO Supply Chain for Defence Submarines: A Crucial Component for Operational Efficiency

The Maintenance, Repair, and Operations (MRO) supply chain encompasses the intricate processes that govern the procurement, inventory management, and delivery of goods and services for maintaining equipment, facilities, and other assets in optimal working condition. Defence submarines, as sophisticated underwater vessels, demand a well-orchestrated MRO supply chain to guarantee their longevity and effectiveness in executing critical missions. With further detail announced on the AUKUS partnership to introduce a nuclear submarine capability for Australia, let's examine the nuances of the MRO supply chain for defence submarines, its significance, challenges, and potential solutions for enhanced management.

The Indispensable Role of the MRO Supply Chain in Defence Submarines

Operating in highly demanding environments and performing tasks such as surveillance, intelligence gathering, and covert operations, defence submarines rely on a robust MRO supply chain for several reasons:

1. Operational Readiness: An efficient MRO supply chain ensures submarines remain in prime condition, poised for deployment at a moment's notice. Regular maintenance and prompt repairs are crucial to maintaining mission-readiness.
   ‍
2. Cost Management: Streamlined MRO processes minimise the total cost of ownership (TCO) for defence submarines. By optimising MRO processes and sourcing appropriate components at opportune moments, defence organisations can reduce costs and bolster budget management.
   ‍
3. Safety: The MRO supply chain plays a pivotal role in safeguarding crew members aboard submarines. Routine maintenance and repairs can avert accidents and equipment malfunctions, thus protecting the lives of those onboard.

‍

Navigating the Challenges in the MRO Supply Chain for Defence Submarines

Managing the MRO supply chain for defence submarines is a complex undertaking, laden with various challenges that warrant attention:

1. Obsolescence: The rapid evolution of technology frequently renders submarine components obsolete, complicating the sourcing and management of replacement parts.
   ‍
2. Regulatory Compliance: Stringent regulations and standards govern defence submarines. Ensuring MRO processes and components adhere to these requirements is a demanding challenge that necessitates continuous vigilance.
   ‍
3. Global Sourcing: Procuring submarine components from global suppliers can introduce logistical challenges and delays, impacting the timely execution of MRO tasks.

Strategies for Enhanced MRO Supply Chain Management

To surmount these challenges and optimise the MRO supply chain for defence submarines, the following strategies can be adopted:

1. Data Analytics and Predictive Maintenance: Harnessing data analytics enables defence organisations to better anticipate maintenance requirements and refine the MRO supply chain. Predictive maintenance facilitates the identification of potential issues before they escalate, allowing for prompt repairs and minimising downtime.
   ‍
2. Collaborative Planning: Cooperation among suppliers, manufacturers, and other supply chain stakeholders can address issues related to obsolescence, regulatory compliance, and global sourcing.
   ‍
3. Standardisation and Modularisation: Embracing standardised processes and modular designs can simplify MRO processes and reduce the number of unique components required for repairs, enhancing sourcing and management efficiency.
   ‍
4. Digital Transformation: Adopting digital technologies such as blockchain, the Internet of Things (IoT), and artificial intelligence (AI) can augment the visibility, efficiency, and security of the MRO supply chain.

The MRO supply chain is an essential component in guaranteeing the operational efficiency and readiness of defence submarines. By addressing inherent challenges and adopting effective strategies for superior management, defence organisations can sustain a high level of preparedness while ensuring the safety and cost-effectiveness of these vital underwater vessels.

‍AUKUS - a new dawn for MRO Supply Chains in Australia

The Virginia-class submarines – one of the two proposed in the AUKUS agreement – form the backbone of the United States Navy's attack submarine fleet, gradually replacing the older Los Angeles-class.

Whilst critical to maintain peace in the Asia-Pacific region, these submarines will be complex and costly to maintain. With a F-35 combat aircraft having in excess of 300,000 parts from 1,700 suppliers – it is not stretch to then assume a submarine of the size, scale and capabilities of the Virginia-class has well over 950,000 different parts and components, including complex machinery, electrical and electronic systems, pumps, valves, sensors, and many other types of equipment. With the US industrial supply chain behind the Virginia-class reportedly under strain, with parts wearing out sooner than expected and cannibilisation occuring across platforms, it will be crucial for Australian Defence planners and industry to invest in their MRO planning capability.

Planning service parts supply chains is a complex task that involves dealing with various challenges such as high-cost parts, long lead times, multiple sources for the same part, sporadic and low-volume part usage patterns, and the contrasting requirements and preferences of OEMs.

‍

‍Contact us today, trace. your supply chain consulting partner.

During times of economic uncertainty,CFOs will look to key levers in an organisation.

The supply chain has several key levers for CFOs, particularly in uncertain times where operating expenses and working capital must be carefully managed. The figure below highlights ‘key metrics in the mind of a CFO’ and the level of influence a supply chain typically will have on such metrics.

‍

‍

‍

‍

Supply Chain Lever Benefits vs. Implementation Complexity - Balancing supply chains short-term vs. long-term opportunities

‍

In assessing how to deploy resource and capital, CFOs must balance anticipated benefits vs. implementation complexity and costs. The figure below highlights for typical example projects this relative equation.

‍

SPOTLIGHT - Supply Chain and Warehouse Network Optimisation & Design

Allocating capital, deploying assets and positioning inventory well in a supply chain network is critical to delivering the right service at the right cost. Supply chains often evolve organically and for some organisations, become awkward collections of sites, sources and inventory.

Network Design is a strategic review – often at board and c-suite level – where a retailer is seeking to lock in their network footprint, asset profile, infrastructure and capabilities decisions for the future. It clearly pays to get these decisions right and the consequences of getting them wrong often can result in years, if not decades of pain.

Scenario modelling is a practice trace. has strong capabilities in. We are here to assist retailers determine – what is the optimal network for their business? Our approach to network design is detailed in the figure below and has been proven over decades using both our own inhouse developed ‘tactical scenario modelling software’ as well as ‘best breed’ network design technologies’.

‍

‍

‍Contact us today, trace. your supply chain consulting partner.

‍

In the manufacturing industry, accurate forecasting and effective inventory management are essential to the success of a business.

Traditional forecasting methods are often inadequate, leading to stockouts, excess inventory, and increased costs. Fortunately, machine learning and leading indicator analysis can help manufacturers improve forecast accuracy and safety stocks, leading to better inventory management and increased profits.

First, let's define what we mean by leading indicators. Leading indicators are variables that change before a change occurs in a broader system or economy. In the manufacturing industry, leading indicators can include things like order backlog, supplier performance, and new product introductions. By monitoring leading indicators, manufacturers can get a sense of what is coming down the pipeline and adjust their operations accordingly.

Machine learning can help manufacturers incorporate leading indicators into their forecasting models, resulting in more accurate predictions. Machine learning algorithms can analyse large amounts of data and identify patterns that humans may not be able to see. By incorporating leading indicators into these algorithms, manufacturers can predict demand more accurately and adjust their production schedules and inventory levels accordingly.

In addition to improving forecast accuracy, machine learning can also help manufacturers identify patterns of demand that they may not have noticed before. For example, machine learning algorithms can analyse sales data and identify which products are frequently purchased together. This information can help manufacturers adjust their inventory levels and product offerings to better meet customer demand.

Safety stock is another area where machine learning and leading indicator analysis can help manufacturers. Safety stock is the inventory that is kept on hand to protect against unexpected demand or supply chain disruptions. Traditionally, manufacturers have used a set formula to determine their safety stock levels. However, these formulas may not take into account factors such as seasonality, supplier performance, or new product introductions.

By incorporating leading indicators into their safety stock calculations, manufacturers can adjust their inventory levels more dynamically. For example, if a manufacturer sees that supplier performance is slipping, they can increase their safety stock levels to protect against potential stockouts. Similarly, if a manufacturer sees that new product introductions are driving up demand for certain products, they can adjust their safety stock levels accordingly.

Machine learning and leading indicator analysis can help manufacturers improve forecast accuracy and safety stocks. By incorporating leading indicators into their forecasting models and safety stock calculations, manufacturers can better predict demand, adjust their inventory levels, and protect against supply chain disruptions. This can lead to better inventory management, increased profits, and a more successful business overall.

Contact us today, trace. your supply chain consulting partner.

Aged care providers in Australia are responsible for providing quality care to the elderly population.

The success of these providers largely depends on the quality of care provided to residents - in homes or facilities. One crucial aspect of delivering high-quality care is through efficient rostering and scheduling of staff. Effective rostering and scheduling can improve service delivery, staff satisfaction, and operational efficiency. In this article, we will delve into how Australian aged care providers can unlock service and operational excellence through effective rostering and scheduling.

‍

Benefits of Effective Rostering and Scheduling

Efficient rostering and scheduling can bring a host of benefits for aged care providers. Some of these benefits include:

1. Improved Staff Productivity: With an efficient rostering and scheduling system, staff can be assigned to shifts based on their skills and availability. This can lead to higher productivity, as staff members are more likely to perform better in roles that suit their strengths.
2. Better Resident Care: When staff members are scheduled effectively, they can provide more personalized care to residents. This can lead to improved resident satisfaction and overall well-being.
3. Cost Savings: Effective rostering and scheduling can help aged care providers manage their operating costs more efficiently. By scheduling staff based on their availability and skills, providers can avoid overstaffing and reduce avoidable operating costs - in the form of travel, overtime, external labour, etc.
4. Compliance with Regulations: Aged care providers are required to comply with a range of regulations and standards. Effective rostering and scheduling can help providers meet these requirements by ensuring that staff members are appropriately trained and qualified.

Best Practices for Rostering and Scheduling

To achieve service and operational excellence through effective rostering and scheduling, aged care providers should adopt the following best practices:

1. Utilise Rostering Technology: The type of scale of technology will vary based on your requirement, that said, rostering software can help automate the scheduling process, reduce errors, and save time. With rostering software, providers can quickly and easily schedule staff members based on their availability, skills, and preferences.
2. Consider Staff Preferences: Aged care providers should consider staff preferences when creating rosters. Staff members are more likely to perform better and stay motivated when they are assigned to shifts that suit their preferences.
3. Be Flexible: Aged care providers should be flexible when creating rosters to accommodate unexpected events or emergencies. This can help prevent staff burnout and ensure that residents receive the care they need.
4. Monitor Staff Performance: Aged care providers should regularly monitor staff performance to identify any issues or areas for improvement. By tracking staff performance, providers can identify opportunities to improve service delivery and operational efficiency.

‍

Effective rostering and scheduling can be a powerful tool for aged care providers in Australia to unlock service and operational excellence. By implementing best practices, providers can improve staff productivity, resident care, and compliance with regulations, while also reducing labour costs. Rostering software can be particularly useful in automating the scheduling process and saving time.

Ultimately, the success of aged care providers in Australia depends on their ability to deliver high-quality care to residents. Effective rostering and scheduling can play a significant role in achieving this goal. By implementing best practices and utilising rostering software, providers can improve their service delivery, staff satisfaction, and operational efficiency.

Aged care providers in Australia should prioritize effective rostering and scheduling to unlock service and operational excellence. With the right tools and practices in place, providers can ensure that staff members are assigned to shifts based on their skills and preferences, resulting in better care for residents, cost savings, and compliance with regulations. It's time for aged care providers to take rostering and scheduling seriously and unlock their full potential.

‍Contact us today, trace. your supply chain consulting partner.

‍trace. partner Mathew recently discussed the importance of understanding the end-to-end supply chain, for industry and governments, in the quest to improve supply chain resilience.

‍

Why is it important for both industry and governments to understand end-to-end supply chains?

Mathew: Arguably the most important reason for both industry and governments to understand end-to-end supply chains is risk. The COVID-19 pandemic has brought this into stark contrast, but supply chain risk extends from just the threat of physical disruption and how we manage that, to broader risks around sustainability, forced labour, environmental damage, and human rights abuses throughout the tiers of a supply chain.  

While businesses have a direct interest in protecting their reputation and bottom line, governments are increasingly understanding they have a role to play, together with the private sector, in protecting our critical national interests. A good example in Australia was the establishment of the Office of Supply Chain Resilience in July 2021.

Can you give us an example of how a company can identify potential risks and vulnerabilities in their supply chains?

Mathew: One approach is to conduct a thorough supplier assessment that includes an evaluation of a company's n-tier suppliers. "N-tier suppliers" refers to the suppliers of a company’s suppliers, and so on, down the supply chain. Understanding these n-tier suppliers can have a significant impact on the overall effectiveness, efficiency, sustainability and ethical performance of a company's supply chain. In many cases, and especially for an import/export-oriented country like Australia, suppliers are in different countries and may operate under different regulations, making it difficult to monitor their practices. There are several technology products available to assist with this.  

This assessment can include information on supplier mapping, supplier performance, compliance with regulations, and social and environmental impacts. By conducting these assessments, companies can identify potential risks and vulnerabilities and work with their suppliers to address these issues.

What role can governments play in helping companies understand their supply chains?

Mathew: One relatively low-cost way is for governments to share more of the rich, broad data sets they often have access to, which can paint an informative picture of macro-level vulnerabilities, risks, as well as opportunities. At its most useful, this data helps industries identify their own risks and improve their resilience.  

A more standard role is governments promoting supply chain transparency and sustainability by implementing regulations and standards that require companies to report on their supply chain practices.  

Finally, governments can provide capability, support and resources to help companies identify and address risks in their supply chains. For example, governments can provide training and capacity building for suppliers to improve their sustainability practices.

How can industries and governments work together to improve supply chain transparency and sustainability?

Mathew: Collaboration between industries and governments is essential to improving supply chain resilience and sustainability. A good starting point is data sharing - setting up a framework through which governments and the private sector can ethically share data on their supply chains. Better data enables better analytics, improving the capability of all stakeholders to identify vulnerabilities, mitigate risks and improve resilience.  

On the regulatory side, governments can work with industries to develop and implement better standards that encourage responsible supply chain practices. Industries, in turn, can provide feedback to governments on the effectiveness of these and work with them to implement them successfully.

Contact us today, trace. your supply chain consulting partner.

Scope 3 Emissions Visibility: What It Is and Why It Matters

As the world becomes more aware of the impact of greenhouse gas emissions on the environment, companies are under increasing pressure to reduce their carbon footprint. While many companies have been successful in reducing their Scope 1 and 2 emissions, which are emissions directly associated with their operations, Scope 3 emissions, which are indirect emissions associated with a company's value chain, are often overlooked.

Scope 3 emissions can include emissions from sources such as purchased goods and services, employee commuting, and waste disposal. According to the Greenhouse Gas Protocol, Scope 3 emissions can account for up to 80% of a company's total carbon footprint. Therefore, understanding and managing Scope 3 emissions is essential for companies looking to reduce their overall carbon footprint.

The Challenges of Managing Scope 3 Emissions

The complexity of a company's network has a significant impact on their emissions reduction strategies. In certain industries, such as energy, utilities, and natural resources, the majority of upstream emissions are concentrated in suppliers located closer to the purchasing company. However, other industries, including aerospace and defense, high tech, and automotive, have upstream emissions concentrated in suppliers further up the supply chain. For example, upstream emissions make up a significant portion of the total emissions for the high tech industry, with an average of 80% of their upstream emissions coming from Tier 2+ suppliers. This industry also has a complex, multi-tier supplier network, which makes it more challenging to identify the sources of upstream emissions.

The sources of emissions vary significantly by industry sector, with power generation being a hot spot for some industries, and raw materials and transportation being the hot spots for others. It is important to note that hot spots could vary within the same industry depending on where a supplier sits in the supply chain. Therefore, it is crucial for companies to identify and target the right set of hot spots to have the most significant impact on reducing overall Scope 3 emissions. This requires visibility across multi-tier suppliers beyond those in Tier 1. Without this visibility, companies may end up focusing and spending resources on actions for different sources that ultimately may not have much of an impact on reducing overall Scope 3 emissions.

Managing Scope 3 emissions can be a challenging task, as these emissions are often outside of a company's direct control. For example, a company may purchase goods and services from suppliers who are located in countries with less stringent environmental regulations, resulting in higher emissions. Similarly, employee commuting can be difficult to manage, especially for companies with a large workforce.

Another challenge in managing Scope 3 emissions is the lack of visibility into these emissions. Companies often lack the data necessary to accurately track and report on their Scope 3 emissions, making it difficult to identify areas for improvement.

The Importance of Scope 3 Emissions Visibility

Despite the challenges associated with managing Scope 3 emissions, it is essential for companies to gain visibility into these emissions. By understanding their Scope 3 emissions, companies can identify areas where they can reduce their carbon footprint and work with suppliers to implement more sustainable practices. In addition, by tracking and reporting on their Scope 3 emissions, companies can demonstrate their commitment to sustainability to stakeholders and customers.

Implementing a Scope 3 Emissions Management Plan

To effectively manage Scope 3 emissions, companies should implement a comprehensive emissions management plan. This plan should include the following steps:

1. Identify and prioritise Scope 3 emission sources: Companies should identify the Scope 3 emission sources that have the most significant impact on their carbon footprint and prioritise these sources for improvement.
2. Collect data on Scope 3 emissions: Companies should work with their suppliers to collect data on their Scope 3 emissions, including emissions from purchased goods and services, employee commuting, and waste disposal.
3. Set emissions reduction targets: Companies should set targets for reducing their Scope 3 emissions based on the data collected.
4. Implement emissions reduction initiatives: Companies should work with their suppliers to implement initiatives to reduce their Scope 3 emissions, such as using renewable energy sources and reducing waste.
5. Track and report on emissions: Companies should track and report on their Scope 3 emissions to demonstrate their commitment to sustainability and identify areas for further improvement.

Contact us today, trace. your supply chain consulting partner.

The rise of e-commerce has led to significant growth for retailers in Australia, with online retail in the country exceeding $53.31 billion in 2022 - according to The NAB Online Retail Sales Index. However, with the surge in online shopping, there has also been a rise in returns, which can be costly and have a significant impact on the environment. In this blog, we will discuss how Australian Retailers can improve their online returns processes to reduce cost and waste by investing in strategic partnerships and technology. We will also highlight the innovations in this space and the need for retailers to assess trade-offs in real-time and capture returns information.

‍

The frequency and cost of online returns

The proportion of online sales that is returned can vary depending on the type of product, the retailer, and the consumer behavior. However, studies have shown that the return rate for online purchases is generally higher than for in-store purchases.

According to a report by the National Retail Federation, the average return rate for online purchases in the United States is around 30% - we would expect this to be consistent in Australia. However, the return rate can be significantly higher for certain product categories, such as clothing and footwear, which can have return rates of 40% or higher.

It's important to note that returns can be costly for retailers due to shipping and handling fees, restocking costs, and potential losses from damaged or unsellable items. A report by the Reverse Logistics Association, highlights the average cost of a return can range from $5 to $30 per item, depending on the product category and the specific circumstances of the return. However, the cost of returns can be higher for some items, such as large or heavy items that are difficult to ship or items that require special handling or disposal. As a result, many retailers have implemented policies and procedures to reduce returns and make the return process more efficient for both the retailer and the customer.

Returns are an essential part of the online shopping process, but they can also be costly for retailers. The cost of returns includes the cost of processing the return, restocking the item, and the cost of shipping the item back to the warehouse.

According to research, retailers in Australia spend around $2.2 billion a year on processing returns, and this number is expected to grow in the coming years. In addition to the cost, the returns process can also be time-consuming for retailers and frustrating for customers.

The impact of returns on the environment

The increase in returns also has a significant impact on the environment. When items are returned, they often end up in landfills or are incinerated, leading to more waste. According to the Australian Bureau of Statistics, in 2019-2020, the amount of waste generated in Australia was 67 million tonnes. If retailers do not improve their returns processes, this number will continue to grow, and the impact on the environment will be significant.

Investing in technology

Technology has been a game-changer for the e-commerce industry, and it can also help retailers improve their returns processes. By investing in technology, retailers can reduce the number of returns and improve the returns process for customers. Some of the technologies that retailers can invest in include:

1. Virtual sizing tools

One of the most common reasons for returns is that the item does not fit the customer. Virtual sizing tools can help customers to choose the right size by allowing them to enter their measurements or by using a virtual try-on feature. By providing customers with accurate sizing information, retailers can reduce the number of returns due to sizing issues.

2. Augmented reality

Another technology that can help retailers to reduce the number of returns is augmented reality. With augmented reality, customers can see what a product will look like in their home before they make a purchase. This can help to reduce the number of returns due to the item not looking like the customer expected it to.

3. Customer reviews

Customer reviews can also help to reduce the number of returns. By providing customers with access to reviews from other customers, retailers can help customers to make more informed purchasing decisions. This can help to reduce the number of returns due to the item not meeting the customer's expectations.

4. Chatbots

Chatbots can help customers to get quick answers to their questions, which can help to reduce the number of returns due to customer confusion. By providing customers with accurate and timely information, retailers can help to reduce the number of returns.

Innovations in the space

Several organisations are addressing the challenges of online returns.

‍One such organisation is Happy Returns, which provides retailers with a network of physical locations where customers can return items. This service is ideal for customers who prefer not to ship items back or for retailers who want to reduce the cost of shipping. Happy Returns also provides retailers with real-time data on returns, which can help them to make better decisions about inventory management and product development.

Another organisation that is making a difference is Refundid, which has developed a technology that can automatically process refunds for retailers. This technology can help to reduce the time and cost of processing returns, as well as improve the accuracy of the refund process. Refundid also provides retailers with real-time data on returns, allowing them to make more informed decisions about their inventory and customer service.

Parcel Point is another organisation that is helping retailers to improve their returns processes. Parcel Point provides a network of local drop-off locations for customers to return items. This service is convenient for customers who do not want to ship items back and helps to reduce the cost of shipping for retailers. Parcel Point also provides retailers with real-time data on returns, allowing them to make better decisions about their inventory and customer service.

Australia Post is also making a difference in the returns space. The organisation has introduced the Parcel Locker service, which allows customers to pick up and drop off parcels at 24/7 accessible locations. This service is ideal for customers who are not home during the day or for those who prefer not to interact with couriers. Australia Post has also introduced the Return Mail service, which allows retailers to include a return label in the original shipment, simplifying the returns process for customers.

Assessing trade-offs in real-time and capturing returns information

Improving the returns process is not only about investing in technology and partnerships, but it is also about assessing trade-offs in real-time and capturing returns information. Retailers need to be able to make informed decisions about the returns process based on real-time data. For example, retailers need to know which items are being returned the most and why they are being returned. This information can help them to make better decisions about their inventory and product development.

Capturing returns information is also essential. Retailers need to know what items are being returned, why they are being returned, and in what condition they are being returned. This information can help retailers to improve their product development, inventory management, and customer service. Additionally, retailers need to be able to use this information to make data-driven decisions about their returns process, such as whether to invest in a partnership with a carrier or a third-party logistics provider.

The increase in online shopping has led to a surge in returns, which can be costly and have a significant impact on the environment. However, by investing in technology and strategic partnerships, retailers can improve their returns processes and reduce costs and waste. Innovations such as Happy Returns, Refundid, Parcel Point, and Australia Post are making it easier for retailers to manage the returns process, and capturing returns information and assessing trade-offs in real-time is critical for retailers to make informed decisions about the returns process. By taking these steps, retailers can improve the customer experience and reduce the environmental impact of returns, making online shopping more sustainable and cost-effective for everyone.

‍Contact us today, trace. your supply chain consulting partner.

In today's global economy, companies are looking to reduce costs and increase efficiency in their supply chains while simultaneously becoming more environmentally sustainable. Sustainability is no longer just a "nice-to-have" for companies but is becoming an essential part of their business strategy. However, the challenge is to achieve these sustainability outcomes without significantly impacting cost and efficiency outcomes. In this blog post, we will explore how companies can achieve sustainability outcomes in the supply chain through stealth, all while targeting cost and efficiency outcomes.

Transport Cost Reduction

In Australia, the transport industry contributes to 17% of the country's greenhouse gas emissions. Therefore, optimising transport costs is a primary area where companies can achieve sustainability outcomes. According to a report by the Australian Department of Environment and Energy, road transport accounts for 90% of transport emissions. To reduce their carbon footprint, companies can collaborate with strategic partners to share transport services, reduce empty runs, and consolidate loads. This will minimise the number of vehicles on the road and reduce fuel consumption. The report also highlights the importance of network design and transport optimisation, which can reduce transportation costs by 5-25% and reduce greenhouse gas emissions by up to 30%.

‍

Inventory and Working Capital Optimisation

In Australia, the average retailer's carbon footprint is 16 times more significant than the emissions from their own operations. This highlights the importance of inventory optimisation for achieving sustainability outcomes. By accurately forecasting demand and demand planning, companies can optimise their inventory levels and minimise overproduction, reducing waste and greenhouse gas emissions. According to the Australian Institute of Packaging, up to 10% of food waste in Australia is due to overproduction, which results in 7.3 million tonnes of greenhouse gas emissions annually. By optimising inventory levels, companies can reduce waste, lower storage costs, and free up cash tied up in inventory.

Working capital optimisation is essential for any business strategy, and it can also contribute to sustainability outcomes. According to the Australian Financial Review, the top 200 Australian companies have potentially over $76 billion of working capital tied up in their supply chain. By working with suppliers to optimise inventory levels, companies can free up cash for investment in other areas, such as research and development, innovation, or sustainability initiatives. This will reduce the environmental impact of the supply chain while also generating increased profits.

Achieving sustainability outcomes in the supply chain through stealth is crucial for companies in Australia.

Transport cost reduction, inventory optimisation, and working capital optimisation are the primary areas where sustainability outcomes can be achieved. Companies can use data and statistics to identify areas for improvement and collaborate with strategic partners to optimise transport costs, inventory levels, and free up cash tied up in inventory. By embracing innovation and change, companies can achieve their sustainability goals while also generating increased profits. The Australian government has set a target to reduce greenhouse gas emissions by 26-28% by 2030, making sustainability outcomes a top priority for all companies operating in Australia. By taking a proactive approach to sustainability, companies can create a more sustainable future for all.

‍Contact us today, trace. your supply chain consulting partner.

Fast-moving consumer goods (FMCG) companies operate in a highly competitive market with demanding customers, fluctuating demand, and supply chain complexities. Therefore, supply chain planning plays a crucial role in the success of FMCG companies. In this article, we will explore the various strategies and technologies that FMCG companies can use to optimise their supply chain planning process and gain a competitive advantage.

Demand Planning and Forecasting

The first step in supply chain planning is demand planning and forecasting. This involves understanding the customer demand and predicting future demand patterns. Advanced Planning Systems (APS) and Enterprise Resource Planning (ERP) systems are useful tools in this regard. They use data analysis, machine learning algorithms, and statistical models to provide accurate demand forecasts, which can help companies to plan their production, inventory, and logistics operations.

Scenario Planning

Scenario planning is a useful technique for predicting and mitigating risks in the supply chain. FMCG companies can use scenario planning to simulate various demand scenarios, such as changes in customer behavior, market trends, and economic conditions. This helps to identify potential supply chain disruptions and develop contingency plans to mitigate risks.

Inventory Optimisation

Inventory optimisation is another critical aspect of supply chain planning. FMCG companies need to maintain optimal inventory levels to balance demand and supply. Excess inventory can lead to high carrying costs, while low inventory levels can lead to stockouts, lost sales, and dissatisfied customers. Materials Requirements Planning (MRP) and service optimization are essential tools for inventory optimisation. MRP calculates the materials needed for production based on demand forecasts, while service optimisation ensures that the right products are available at the right time and place.

Sales and Operations Planning (S&OP)

Sales and Operations Planning (S&OP) is a cross-functional process that involves aligning the company's sales and operations plans with its financial goals. This process helps FMCG companies to make informed decisions regarding production, inventory, and logistics, based on the most up-to-date demand and supply data. S&OP involves collaboration between various departments, such as sales, marketing, finance, and operations, and can be a useful tool for optimising the entire supply chain.

Integrated Business Planning (IBP)

Integrated Business Planning (IBP) is a more comprehensive approach to supply chain planning, which involves aligning the entire business strategy with the supply chain strategy. IBP involves not only the sales and operations planning process but also other functions such as marketing, product development, and finance. By aligning the entire business strategy, IBP can help FMCG companies to optimise their supply chain, reduce costs, and improve customer satisfaction.

Cost Optimisation

Cost optimisation is a critical aspect of supply chain planning. FMCG companies need to optimise their supply chain costs, including receiving costs, carrying costs, and working capital. Slow-moving and obsolete (SLOB) inventory can lead to high carrying costs and impact working capital. Therefore, FMCG companies need to optimize their inventory levels and reduce SLOB inventory. They can also reduce costs by optimizing their logistics operations, such as transportation, warehousing, and distribution. Optimising costs can help FMCG companies to improve their COGS efficiency, increase profitability, and gain a competitive advantage.

Supply chain planning is a critical process for FMCG companies.

By optimising their supply chain planning process, FMCG companies can improve their demand forecasting, inventory management, logistics operations, and cost efficiency. Advanced Planning Systems (APS), Enterprise Resource Planning (ERP) systems, scenario planning, inventory optimisation, sales and operations planning (S&OP), Integrated Business Planning (IBP), and cost optimisation are essential tools for optimising the supply chain. By implementing these strategies, FMCG companies can gain a competitive advantage, improve customer satisfaction, and increase profitability.

‍Contact us today, trace. your supply chain consulting partner.

Improving procurement practices in healthcare can have several benefits for organisations, including improved patient outcomes, increased cost savings, and enhanced efficiency.

One significant benefit is improved patient outcomes. By improving procurement practices, healthcare organisations can ensure that they have the necessary medical equipment, supplies, and medications to provide the highest quality of care to patients. For example, having an adequate supply of medical equipment and supplies ensures that patients receive the treatment they need when they need it, improving their chances of a successful outcome.

Another benefit is increased cost savings. Healthcare organisations that improve their procurement practices can negotiate better prices for medical supplies and equipment, reducing their overall expenses. Additionally, they can eliminate waste and reduce the number of stockouts, which can result in costly emergency orders.

Enhanced efficiency is also a benefit of improved procurement practices. By streamlining procurement processes, healthcare organisations can reduce the time it takes to order, receive, and distribute medical supplies and equipment. This can result in more time spent on patient care, which can improve patient outcomes.

Finally, improving procurement practices can help healthcare organisations stay in compliance with regulatory requirements. By having proper inventory management systems in place, healthcare organisations can ensure that they are adhering to regulatory guidelines regarding the handling and use of medical supplies and equipment.

Improving procurement practices in healthcare can lead to better patient outcomes, increased cost savings, enhanced efficiency, and better compliance with regulatory requirements.

If you're looking to improve your organisation's procurement capabilities, the procurement capability assessment and development support service offered by trace. is worth considering. It's a comprehensive service that uses various technical and analytical tools to evaluate and enhance procurement operations.

The process starts with a thorough analysis of your current procurement practices, which is done through interviews, surveys, and data collection exercises. The findings are then used to generate a detailed report outlining strengths, weaknesses, and opportunities for improvement.

Based on this report, the trace. team works with your organisation to develop and implement a tailored procurement improvement program. This program focuses on addressing weaknesses and building on strengths to create a best-in-class procurement function.

The service doesn't end with the implementation of the procurement improvement program. trace. provides ongoing support and guidance to ensure its success. This includes training and coaching for procurement staff, developing procurement policies and procedures, and monitoring and evaluating the procurement function.

Overall, the procurement capability assessment and development support service is an excellent way to improve procurement efficiency, save costs, and achieve better outcomes. If you're interested in learning more, contact trace. to see how they can help your organisation.

‍Contact us today, trace. your supply chain consulting partner.

A great management consultant in supply chain can make a significant impact on a business by optimising the supply chain processes, reducing costs, improving efficiency, and maximising profits. However, finding the right management consultant can be a daunting task for businesses. This article will discuss the attributes that businesses should look for when hiring a management consultant for their supply chain operations.

Deep understanding of supply chain management

A great management consultant should have a deep understanding of supply chain management. They should be knowledgeable about the different supply chain models, inventory management, logistics, transportation, and procurement. This knowledge allows them to provide valuable insights into supply chain operations and recommend changes that can improve efficiency.

Excellent analytical and problem-solving skills

The ability to analyse data, identify problems and provide solutions is crucial for a management consultant. A great management consultant should be skilled in data analysis and have a deep understanding of supply chain data. They should also be able to identify patterns, trends, and insights from data to help businesses make informed decisions.

Strong communication and interpersonal skills

A management consultant should have excellent communication and interpersonal skills. They should be able to listen to the concerns of the business and communicate complex information in a clear and concise manner. Furthermore, they should be able to work well with people at all levels of the organisation and build strong relationships with clients.

Industry-specific knowledge and experience

A great management consultant should have industry-specific knowledge and experience. They should have worked with businesses in the same industry and have a deep understanding of industry-specific supply chain challenges. This knowledge enables them to provide tailored solutions to businesses that are specific to their industry.

Innovative and creative thinking

The ability to think outside the box and come up with innovative solutions is crucial for a management consultant. They should be able to identify opportunities for improvement and suggest new and creative ways of addressing supply chain challenges. This innovative thinking can help businesses stay ahead of their competition and achieve their goals.

Project management skills

A great management consultant should have strong project management skills. They should be able to develop project plans, set realistic goals and timelines, and manage project resources effectively. This skill ensures that projects are completed on time, within budget, and to the satisfaction of the client.

Flexibility and adaptability

The ability to adapt to changing circumstances and be flexible is crucial for a management consultant. They should be able to adjust their approach based on the unique needs of the business and be open to change. This flexibility enables them to work with businesses of all sizes, in different industries, and with varying degrees of complexity.

‍Contact us today, trace. your supply chain consulting partner.

The back of house logistics and central store operations play a crucial role in ensuring that products are delivered to the right place at the right time. Optimising these operations can help reduce costs, increase efficiency and improve the overall customer experience. In this article, we will explore the best strategies for optimising back of house logistics and central store operations.

Understanding Back of House Logistics and Central Store Operations

Back of house logistics and central store operations involve managing inventory, processing orders, and ensuring that products are delivered to the correct location. This is a complex process that requires effective communication and collaboration between various departments within the organisation. By understanding the intricacies of this process, you can identify areas for improvement and implement strategies to increase efficiency.

Efficient Inventory Management

Effective inventory management is essential for optimising back of house logistics and central store operations. This involves accurately tracking inventory levels, forecasting demand, and ordering products in a timely manner. By having a clear understanding of inventory levels, you can avoid overstocking and understocking, reducing costs and improving overall efficiency.

Streamlining Order Fulfilment and Implementing the Right MHE

Streamlining order fulfilment is another key strategy for optimising back of house logistics and central store operations. This involves ensuring that orders are processed and delivered quickly and accurately. By implementing efficient order processing procedures, such as automated picking and packing, you can reduce the time and labour required for order fulfilment.

Embracing Technology

Technology can play a significant role in optimising back of house logistics and central store operations. By implementing an automated inventory management system, for example, you can reduce the risk of errors and ensure accurate tracking of inventory levels. Additionally, technology can be used to streamline order fulfilment processes, such as through the use of automated picking and packing systems.

Training and Development

Training and development of staff is crucial for optimising back of house logistics and central store operations. By ensuring that employees are trained on the latest inventory management and order fulfilment procedures, you can increase efficiency and reduce errors. Additionally, investing in employee development can improve staff morale and reduce turnover rates.

By implementing strategies such as efficient inventory management, streamlined order fulfilment, technology adoption, and staff training and development, you can increase efficiency, reduce costs, and improve the overall customer experience. By following the tips outlined in this guide, you can take your supply chain management to the next level and achieve greater success in your business.

‍Contact us today, trace. your supply chain consulting partner.

‍

As the world adjusts to life after the COVID-19 pandemic, hospitals have been under increased pressure to ensure the efficient functioning of their supply chain, back of house logistics, and central store operations. Hospitals need to maintain an adequate inventory of essential medical supplies, consumables and equipment, while also ensuring their timely delivery to different departments and facilities.

Here are ten ways that hospitals can improve their supply chain, back of house logistics, and central store operations.

Centralise Procurement Processes

Centralising procurement processes helps hospitals to consolidate their purchasing power, streamline the purchasing process, and negotiate better prices with suppliers. This can result in cost savings, which can be used to fund other critical healthcare initiatives.

Invest in a Robust Inventory Management System

A robust inventory management system is essential for hospitals to keep track of their stock levels and replenish supplies on time. An inventory management system can help hospitals avoid stock-outs, reduce waste, and minimise the risk of expired products.

Leverage Automation Technologies

Automation technologies, such as robotics and artificial intelligence, can help hospitals to streamline their supply chain and back of house logistics. For example, robotic process automation (RPA) can automate repetitive tasks, while AI can optimise inventory levels and predict demand.

Implement Lean Practices

Lean practices are based on the principles of eliminating waste and improving efficiency. By implementing lean practices, hospitals can optimise their supply chain, reduce costs, and improve the quality of care they provide.

Focus on Supplier Relationship Management

A good supplier relationship management program can help hospitals to develop strong partnerships with their suppliers. This can lead to better pricing, improved delivery times, and better overall service quality.

Develop a Contingency Plan

Hospitals must develop a contingency plan to manage unforeseen events such as natural disasters, pandemics, or other emergencies. A contingency plan can help hospitals to ensure continuity of supplies and minimise disruption to patient care.

Monitor Key Performance Indicators (KPIs)

KPIs are essential metrics that help hospitals to measure their performance and identify areas for improvement. By monitoring KPIs, hospitals can track their progress, identify bottlenecks, and make data-driven decisions to improve their supply chain and logistics.

Implement Vendor-Managed Inventory (VMI)

VMI is a process where the supplier takes responsibility for managing the inventory at the hospital. This can help hospitals to reduce the burden of managing inventory, minimise stock-outs, and ensure timely replenishment.

Optimise Transport and Delivery

Optimising transport and delivery can help hospitals to reduce costs, improve efficiency, and ensure timely delivery of supplies. This can be achieved by using the right mode of transportation, optimising delivery routes, and using technology to track shipments.

Develop a Strong Culture of Continuous Improvement

Finally, hospitals must develop a strong culture of continuous improvement to ensure that they remain agile and responsive to changes in their environment. By continuously improving their supply chain and logistics, hospitals can provide better care to their patients while minimising costs.

‍Contact us today, trace. your supply chain consulting partner.

Effective negotiation of transport contracts is crucial for businesses to operate efficiently and effectively.

The process can be complex, requiring a thorough understanding of the market and an ability to identify the best deal for your business. In this article, we will provide you with a comprehensive guide on how to benchmark and effectively go to market and negotiate a new transport contract.

Understanding Your Transport Needs

Before you begin the process of negotiating a transport contract, it is essential to understand your transport needs. This involves an analysis of your business requirements, such as the type of cargo you transport, the distance of transportation, and the frequency of transportation. This understanding will enable you to determine what services and transport modes you require from a potential transport provider.

Benchmarking Your Transport Costs

The next step in the process is to benchmark your transport costs. Benchmarking your costs will enable you to compare your current transportation costs with industry averages and identify areas where you can save money. This analysis will also provide you with a clear understanding of the pricing structure in the transport industry, which is essential for negotiating a contract.

Identifying Potential Transport Providers

After benchmarking your transport costs, the next step is to identify potential transport providers. This process involves conducting research on transport providers in your area, assessing their capabilities, and reviewing their track record. It is essential to evaluate potential transport providers based on factors such as reliability, safety record, and cost-effectiveness.

Requesting Proposals and Conducting Negotiations

Once you have identified potential transport providers, the next step is to request proposals and conduct negotiations. Requesting proposals will enable you to receive a comprehensive breakdown of the costs involved in transporting your cargo. This information will enable you to compare the costs of different transport providers and select the one that best fits your budget and requirements.

After reviewing the proposals, the negotiation process begins. The negotiation process involves a discussion of the terms and conditions of the transport contract, including the cost of transportation, the frequency of transportation, and the duration of the contract. It is essential to negotiate a contract that meets your requirements and is cost-effective.

Selecting Partners and Signing the Transport Contract

After the negotiation process is complete, the final step is to sign the transport contract. It is essential to review the contract carefully before signing and ensure that all the terms and conditions agreed upon during negotiations are included in the contract. The contract should be legally binding, and both parties should agree to the terms and conditions before signing.

Negotiating a transport contract can be a complex and challenging process, but by following the steps outlined in this article, you can effectively benchmark and go to market and negotiate a new transport contract. Remember to begin by understanding your transport needs, benchmarking your transport costs, identifying potential transport providers, requesting proposals, conducting negotiations, and finally, signing the transport contract.

By following these steps, you can ensure that you select a transport provider that meets your business requirements and is cost-effective. With this information, you can be confident in negotiating and securing the best possible transport contract for your business.

‍Contact us today, trace. your supply chain consulting partner.

Effective rostering and scheduling are critical components of managing aged residential and home care services.

Without proper planning and scheduling, it can be challenging to provide quality care to your clients while maintaining a profitable business. In this article, we will explore the best practices for improving your rostering and scheduling for aged residential and home care services.

Understand Your Clients' Needs

The first step to improving your rostering and scheduling is to understand your clients' needs. Different clients may require different levels of care, and their needs may change over time. It is essential to conduct a thorough assessment of each client's care requirements and develop a care plan that meets their individual needs.

By understanding your clients' needs, you can create a roster that ensures each client receives the care they need while minimizing the number of staff required to provide that care.

Develop a Staffing Plan and Your Workforce Composition

Once you have a clear understanding of your clients' needs, you can develop a staffing plan that meets those needs while minimizing labor costs. One strategy for reducing labor costs is to create a flexible roster that utilizes part-time and casual staff.

By using part-time and casual staff, you can reduce labor costs while ensuring that you have the appropriate number of staff available to meet your clients' needs. Additionally, by developing a staffing plan that takes into account staff availability and preferences, you can improve staff satisfaction and reduce turnover.

Utilise Technology to Capacity Plan and Schedule

Technology can be a valuable tool in improving your rostering and scheduling. There are many software applications available that can automate rostering, scheduling, and timekeeping. These applications can help you optimize staffing levels, reduce labor costs, and improve staff efficiency.

Additionally, technology can be used to monitor staff performance and provide real-time feedback on areas where improvements are needed. By utilizing technology, you can make data-driven decisions that can help you optimize your operations and improve the quality of care you provide to your clients.

Plan for Contingencies

In aged residential and home care services, it is essential to plan for contingencies. Staff absences, emergencies, and unforeseen events can impact your operations and disrupt your roster. By planning for contingencies, you can minimize the impact of these events on your business.

One strategy for planning for contingencies is to cross-train staff. By cross-training staff, you can ensure that there is always someone available to fill in if a staff member is absent. Additionally, you can create contingency plans for emergencies and unexpected events to ensure that your operations continue to run smoothly.

Monitor and Review

Finally, it is essential to monitor and review your rostering and scheduling practices regularly. By monitoring your operations, you can identify areas for improvement and make data-driven decisions that can help you optimize your operations.

Regular reviews can also help you identify staff performance issues and take corrective action before they become major problems. Additionally, by soliciting feedback from staff and clients, you can gain insights into areas where improvements are needed and develop strategies to address those issues.

Improving your rostering and scheduling practices is critical to managing aged residential and home care services effectively.

By understanding your clients' needs, developing a staffing plan, utilizing technology, planning for contingencies, and monitoring and reviewing your operations, you can improve the quality of care you provide to your clients while minimizing labor costs and improving staff satisfaction.

‍Contact us today, trace. your supply chain consulting partner.

At the heart of any successful business lies a well-optimised and efficient warehouse network.

In order to maximise profits and remain competitive in today's fast-paced market, it is essential to minimise costs and streamline operations. One of the most significant factors in achieving this goal is the proper management and optimisation of fixed, variable, and freight costs associated with your warehouse network.

In this article, we will explore the best strategies and practices for optimising your warehouse network for fixed, variable, and freight costs. By following these guidelines, you can not only reduce your expenses but also improve your overall supply chain efficiency and customer satisfaction.

Fixed Costs Optimisation

Fixed costs refer to expenses that remain constant regardless of the level of activity within your warehouse network. This can include rent, utilities, insurance, and other overhead expenses. The first step in optimising your fixed costs is to evaluate the efficiency of your current warehouse layout and processes.

One strategy to reduce fixed costs is to consolidate your warehouse operations into a single, larger facility. This can reduce the overall rent and utility costs associated with maintaining multiple smaller warehouses. Additionally, you can explore options for subleasing unused warehouse space or investing in energy-efficient technologies to reduce utility expenses.

Variable Costs Optimisation

Variable costs are expenses that fluctuate with the level of activity within your warehouse network. This can include labor costs, equipment maintenance, and material handling expenses. The key to optimising variable costs is to ensure that your warehouse is operating at maximum efficiency.

One strategy for reducing variable costs is to implement an automated inventory management system. This can reduce labor costs associated with manual inventory tracking and improve accuracy and efficiency. Additionally, investing in high-quality equipment and scheduling regular maintenance can reduce repair and replacement expenses.

Freight Costs Optimisation

Freight costs refer to the expenses associated with shipping and transportation of goods within your warehouse network. This can include transportation costs, customs fees, and insurance expenses. Optimising your freight costs can be challenging, but it is essential to remain competitive in today's global market.

One strategy for reducing freight costs is to evaluate your current shipping and transportation providers. By negotiating with multiple providers and leveraging your shipping volume, you can often secure lower rates and more favorable terms. Additionally, you can explore options for consolidating your shipments to reduce overall transportation costs.

Optimising your warehouse network for fixed, variable, and freight costs is essential to maximise profits and remain competitive in today's market. By evaluating your current processes and implementing best practices, you can reduce your expenses, improve supply chain efficiency, and enhance customer satisfaction.

We recommend taking a comprehensive approach to warehouse cost optimisation by evaluating each category of expense and implementing targeted strategies. By doing so, you can ensure that your warehouse network is operating at maximum efficiency and profitability.

‍Contact us today, trace. your supply chain consulting partner.

Allocating capital, deploying assets and positioning inventory well in a supply chain network is critical to delivering the right service at the right cost. Supply chains often evolve organically and for some organisations, become awkward collections of sites, sources and inventory.

In the competitive world of retail, a well-designed and optimised omnichannel distribution network can be the key to success. With the rise of e-commerce and changing consumer demands, retailers must focus on network footprint design to optimise fixed, variable, and transport costs.

In this article, we will explore key principles for building an omnichannel distribution network that is optimised for cost efficiency.

Optimise Warehouse Network Footprint Design

To minimise fixed costs, retailers must design an optimised network footprint. This involves locating distribution centers and warehouses in strategic locations to reduce transportation costs and increase delivery speed. By analysing transportation routes and customer demand patterns, retailers can identify the optimal location for each facility to reduce fixed costs and improve overall efficiency.

Utilise Variable Cost Reduction Strategies

Variable costs, such as labor and energy costs, can be optimised through the use of technology and automation. By investing in technologies such as robotics and AI, retailers can reduce labor costs and increase accuracy and efficiency. Additionally, the use of energy-efficient technologies can reduce energy costs and minimise the environmental impact of the distribution network.

Leverage Advanced Analytics and AI

To optimise transport costs, retailers should leverage advanced analytics and AI technologies. By analysing transportation data, retailers can identify inefficiencies and optimise routes to reduce costs and improve delivery times. Additionally, the use of AI can improve demand forecasting and inventory management, reducing the need for costly expedited shipping.

Embrace Innovation and Experimentation

As the retail industry continues to evolve, retailers must be willing to embrace innovation and experiment with new technologies and processes. This can involve exploring new delivery models, such as same-day or on-demand delivery, or leveraging emerging technologies such as blockchain or IoT to improve supply chain transparency and efficiency.

Build a Culture of Continuous Improvement

To sustain a successful omnichannel distribution network, retailers must build a culture of continuous improvement. This involves encouraging cross-functional collaboration and fostering a culture of innovation and experimentation. By continuously seeking out new ways to optimise costs and improve the supply chain, retailers can stay ahead of the competition and provide superior customer experiences.

Building an optimised omnichannel distribution network requires a focus on network footprint design and cost optimisation. By optimising fixed and variable costs and leveraging advanced analytics and AI, retailers can improve efficiency and reduce costs. By embracing innovation and experimentation and building a culture of continuous improvement, retailers can stay ahead of the competition and provide superior customer experiences.

Allocating capital, deploying assets and positioning inventory well in a supply chain network is critical to delivering the right service at the right cost. Supply chains often evolve organically and for some organisations, become awkward collections of sites, sources and inventory.

Warehouse Network Design is a strategic review – often at board and c-suite level – where a retailer is seeking to lock in their network footprint, asset profile, infrastructure and capabilities decisions for the future. It clearly pays to get these decisions right and the consequences of getting them wrong often can result in years, if not decades of pain.

Scenario modelling is a practice trace. has strong capabilities in. We are here to assist retailers determine – what is the optimal network for their business?

‍

‍Contact us today, trace. your supply chain consulting partner.

‍

Traditional Australian Retail Supply Chain Warehouse Networks in are not Often Built for Same-day Delivery with Excellent Service

As the world continues to evolve and consumers' expectations become more demanding, the traditional retail supply chain networks in Australia are struggling to keep up with same-day delivery services. In today's fast-paced world, customers want to receive their orders on the same day, if not within hours of making their purchase. However, many retailers are not equipped to handle these demands due to the limitations of their supply chain networks.

In this article, we will explore the challenges that traditional retail supply chain networks face in Australia and how they can adapt to meet the changing needs of consumers. We will discuss the impact of same-day delivery on retail, the challenges of implementing same-day delivery, and the potential solutions to these challenges.

The Impact of Same-Day Delivery on Retail

Same-day delivery has become a competitive advantage for retailers in recent years. Customers now expect to receive their orders on the same day, and retailers who can meet these expectations are more likely to win their loyalty. Same-day delivery can help retailers reduce cart abandonment rates, increase customer satisfaction, and improve their brand reputation.

However, same-day delivery is not just a matter of delivering products quickly. Retailers must also ensure that the service they provide is of the highest quality. The delivery process must be efficient, and the products must be delivered undamaged and in excellent condition. Retailers must also ensure that their customer service is top-notch, as any mistakes or delays can damage their reputation and erode customer trust.

The Challenges of Implementing Same-Day Delivery

Implementing same-day delivery is not without its challenges. For traditional retailers, the primary challenge is the limitations of their supply chain networks. Many retailers have supply chain networks that are designed for traditional delivery models and are not equipped to handle the demands of same-day delivery.

Another challenge is the cost of implementing same-day delivery. Retailers must invest in technology, logistics, and infrastructure to support same-day delivery. This investment can be significant, and many retailers may struggle to justify the expense.

In addition, same-day delivery requires a high degree of coordination and collaboration across the entire supply chain network. This includes coordination between the retailer, their suppliers, and the logistics providers. If any part of the supply chain network fails to deliver, the entire delivery process can be disrupted.

Potential Solutions to the Challenges

Despite the challenges, there are potential solutions that retailers can implement to overcome the limitations of their supply chain networks and provide same-day delivery services. One of the most effective solutions is to partner with third-party logistics providers who specialise in same-day delivery.

By partnering with a third-party logistics provider, retailers can leverage their expertise and experience in same-day delivery to provide their customers with an excellent service. These providers have the infrastructure, technology, and logistics capabilities to handle the demands of same-day delivery.

Another solution is to optimise the existing supply chain network. Retailers can achieve this by implementing new technology, such as automation and robotics, to increase efficiency and reduce costs. They can also implement a more flexible supply chain network that can respond quickly to changing customer demands.

‍

Contact us today, trace. your supply chain consulting partner.

Choosing a 3PL or 4PL partner depends on your business needs. If you are looking for a hands-on partner that will handle all logistics on your behalf, then a 3PL partner may be the right choice for you. On the other hand, if you are looking for a strategic partner that can provide consulting services to optimise your supply chain, then a 4PL partner may be the right choice.

It is important to consider factors such as industry experience, capacity and flexibility, technology, service level agreements, and customer service when selecting a transport partner. Look for a partner with industry experience who can anticipate your needs and provide flexible transportation solutions at the right price. Make sure they have state-of-the-art technology that allows for real-time tracking, updates, and analytics. Ensure that they are committed to delivering on their promises and have a dedicated customer service team that is responsive and knowledgeable.

• What is the difference between a 3PL and 4PL partner? A 3PL partner manages the entire logistics process, while a 4PL partner provides consulting services to optimise the entire supply chain.

• How do I choose between a 3PL and 4PL partner? The choice depends on your business needs. If you want a hands-on partner, then a 3PL partner may be the right choice. If you want a strategic partner, then a 4PL partner may be the right choice.

• What factors should I consider when choosing a transport partner? You should consider industry experience, capacity and flexibility, technology, service level agreements, and customer service.

• Why is technology important when selecting a transport partner? State-of-the-art technology allows for real-time tracking, updates, and analytics that can help optimise your supply chain and reduce costs.

• What should be included in a service level agreement (SLA)? The SLA should include KPIs, such as on-time delivery rates, transit times, and claims rates, that outline the expectations for both parties.

Choosing the right transport partner is critical for the success of your supply chain. Whether you choose a 3PL or 4PL partner depends on your business needs. When selecting a partner, consider factors such as industry experience, capacity and flexibility, technology, service level agreements, and customer service. Look for a partner with industry experience who can provide flexible transportation solutions at the right price. Make sure they have state-of-the-art technology and are committed to delivering on their promises. With the right partner, you can optimise your supply chain, reduce costs, and improve your bottom line.

‍

‍Contact us today, trace. your supply chain consulting partner.

‍

Effective Strategies for Managing Transport Operations

At trace. we understand that managing transport operations can be a complex and challenging task. However, it is a critical aspect of any business that relies on transportation to move goods or people. In this article, we will provide some effective strategies for managing transport operations that will help your business to operate more efficiently and effectively.

1. Develop a Comprehensive Transport Strategy

The first step in managing transport operations is to develop a comprehensive transport strategy that aligns with your business goals. This strategy should take into account factors such as the types of goods being transported, the routes being taken, and the type of vehicles being used.

2. Utilize Technology to Improve Efficiency

The use of technology can significantly improve the efficiency of your transport operations. For example, implementing a GPS tracking system can help you to monitor the location of your vehicles in real-time. This information can be used to optimize routes and ensure that your vehicles are being used to their full capacity.

3. Conduct Regular Maintenance and Inspections

Regular maintenance and inspections are crucial for ensuring the safety and reliability of your vehicles. It is essential to have a preventative maintenance program in place that includes regular inspections, repairs, and replacements. This will help to prevent breakdowns and ensure that your vehicles are always in good working order.

4. Manage Fuel Consumption

Fuel consumption is a significant expense in transport operations, and managing it effectively can save your business a significant amount of money. Strategies such as optimizing routes, implementing eco-driving techniques, and using fuel-efficient vehicles can all help to reduce fuel consumption and costs.

5. Implement Effective Communication Systems

Effective communication is critical for managing transport operations. Clear and concise communication between drivers, dispatchers, and other staff members is essential for ensuring that operations run smoothly. Implementing communication systems such as two-way radios, messaging systems, and tracking software can all help to improve communication and streamline operations.

6. Monitor Performance and Make Adjustments

Finally, it is essential to monitor the performance of your transport operations regularly. This will help you to identify areas where improvements can be made and make necessary adjustments. Regular performance evaluations can also help you to identify trends and patterns that can be used to optimize operations further.

Managing transport operations is a critical aspect of any business that relies on transportation to move goods or people. By developing a comprehensive transport strategy, utilizing technology, conducting regular maintenance and inspections, managing fuel consumption, implementing effective communication systems, and monitoring performance, businesses can optimize their transport operations to be more efficient and effective. At our company, we have helped many businesses to implement these strategies and achieve significant improvements in their transport operations.

Contact us today to learn more about how we can help your business with your:

- Freight Review / Optimisation

- Freight Benchmarking

- Freight Sourcing

- Network Optimisation

- 4PL Selection

- Solution Design

‍

‍Contact us today, trace. your supply chain consulting partner.