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Sustainability in the Supply Chain

In the wake of global climate change concerns and increasing regulatory requirements, Australian businesses must consider the impact of their supply chain on greenhouse gas (GHG) emissions. A key area of focus is scope 3 emissions, which encompass indirect emissions from a company's value chain, including upstream and downstream activities. In this blog article, we will discuss the importance of addressing scope 3 emissions and explore the investments Australian businesses can make to maximise their emission reduction impact.

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Understanding Scope 3 Emissions

Scope 3 emissions are divided into two main categories:

1. Upstream emissions: These emissions result from activities that occur before a company's direct operations, such as raw material extraction, production, and transportation.
2. Downstream emissions: These emissions occur after a product has left a company's direct control, including product use, end-of-life treatment, and disposal.

Investments for Maximising Scope 3 Emission Impact in Australia

Australian businesses can make strategic investments in their supply chains to address scope 3 emissions and contribute to a more sustainable future. Here are some key areas to focus on:

1. Measure and report: Australian businesses should invest in systems that accurately measure and report their scope 3 emissions. This will help identify areas for improvement and track progress. Standardised measurement and reporting methodologies, such as the Greenhouse Gas Protocol, can provide a solid foundation for such efforts.
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2. Supplier engagement: Engaging with suppliers is crucial for Australian businesses seeking to reduce their scope 3 emissions. Companies can provide incentives, support, and training to help suppliers adopt low-carbon technologies and practices. Collaborating with suppliers on sustainability targets and sharing best practices can also drive emission reductions across the supply chain.
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3. Sustainable procurement: Integrating sustainability criteria into procurement processes can help Australian businesses prioritise suppliers with lower emissions profiles. This may include considering factors such as energy efficiency, use of renewable energy, waste management, and recycling practices when selecting suppliers.
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4. Product design and lifecycle management: By designing products with sustainability and circular economy principles in mind, Australian businesses can minimise emissions throughout the product lifecycle. This includes considering factors such as material selection, recyclability, and energy efficiency during the design phase, as well as end-of-life disposal and recycling options.
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5. Collaboration and innovation: Australian businesses can benefit from collaborating with industry peers, government agencies, and other stakeholders to develop innovative solutions for reducing scope 3 emissions. Joining industry initiatives, partnering with research institutions, or investing in new technologies can drive emissions reductions across the value chain.

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Examples of Australian Companies Making a Difference

1. BHP

Mining giant BHP has made significant commitments to reduce its scope 3 emissions. The company has set an ambitious goal to become a net-zero emissions business by 2050. BHP has implemented initiatives such as investing in carbon capture and storage technologies, collaborating with suppliers to reduce emissions from steel production, and working with customers to reduce emissions during the use of its products.
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2. Qantas

Qantas, Australia's largest airline, has committed to achieving net-zero emissions by 2050. To address scope 3 emissions, Qantas has invested in sustainable aviation fuels (SAF) and partnered with suppliers to develop low-carbon alternatives. Additionally, the airline has implemented a carbon offset program that encourages passengers to offset their emissions by supporting environmental projects in Australia and overseas.
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3. Westpac

Westpac, one of Australia's largest banks, has established a comprehensive climate change strategy that includes reducing scope 3 emissions. The bank has committed to aligning its lending portfolio with the Paris Agreement goals and actively engages with customers in carbon-intensive sectors to support their transition to a low-carbon economy. Westpac has also introduced responsible investment options for customers that consider environmental, social, and governance (ESG) factors.

Addressing scope 3 emissions is an essential aspect of corporate sustainability and environmental stewardship for Australian businesses. By investing in emission measurement and reporting, supplier engagement, sustainable procurement, product design, and collaboration, companies can significantly reduce their scope 3 emissions and contribute to a greener future. As regulations and stakeholder expectations continue to evolve, Australian organisations that proactively address scope 3 emissions will be better positioned to thrive in a low-carbon economy.

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

MRO Supply Chains

Maintenance, Repair, and Operations (MRO) supply chains are often overlooked aspects of business management, with many companies focusing on production and sales instead. However, investing in MRO supply chain optimisation can lead to significant competitive advantages, such as reduced downtime, increased productivity, and improved customer satisfaction. In this article, we will explore the importance of MRO supply chain investments and discuss examples of organizations that have successfully harnessed this strategy to stay ahead of the competition.

Why Invest in MRO Supply Chains?

MRO supply chains are crucial to ensuring the smooth operation of any organisation. The efficiency and effectiveness of MRO processes can have a direct impact on a company's bottom line. By investing in MRO supply chain improvements, companies can achieve several benefits, including:

1. Minimising downtime: Efficient MRO supply chains reduce machine downtime, leading to increased productivity and higher revenues.
2. Enhancing inventory management: Optimising MRO inventory can prevent overstocking and understocking, reducing costs and minimising the risk of production disruptions.
3. Improving customer satisfaction: Prompt and efficient MRO services can help maintain product quality and timely deliveries, leading to happier customers and increased loyalty.

Examples of Successful MRO Supply Chain Investments

1. Rolls-Royce

A global leader in aerospace and defense, Rolls-Royce has implemented a TotalCare® program to manage its MRO supply chain. By adopting a proactive approach to maintenance and utilising advanced analytics, Rolls-Royce has significantly reduced engine downtime and increased aircraft availability. This investment in MRO supply chain optimisation has allowed the company to maintain a competitive edge in the aerospace market and offer superior services to its customers.

2. Caterpillar

Caterpillar, a leading manufacturer of construction and mining equipment, has made significant investments in its MRO supply chain to improve operational efficiency. By integrating advanced analytics and predictive maintenance strategies, Caterpillar has been able to reduce equipment downtime and optimise inventory levels. This investment has not only resulted in cost savings but also enhanced the company's overall competitiveness in the heavy equipment market.

3. General Electric (GE)

GE has successfully optimised its MRO supply chain by implementing a centralised approach to inventory management. Through a single, global inventory system, GE has minimised stockouts and reduced inventory carrying costs. This investment has led to significant cost savings and improved operational efficiency, giving GE a competitive edge in the market.

Investing in MRO supply chain optimisation is essential for organisations seeking a competitive advantage. Companies like Rolls-Royce, Caterpillar, and GE have demonstrated the benefits of this approach, including reduced downtime, better inventory management, and improved customer satisfaction. By prioritising MRO supply chain investments, companies can unlock significant value and position themselves for long-term success in an increasingly competitive business landscape.

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

Retail Supply Chains and Technology

In the fast-paced retail industry, businesses must continuously adapt and innovate to stay competitive. As consumer behavior evolves and globalisation drives change, retailers must focus on optimising their supply chain to ensure success. By leveraging advanced supply chain technologies, businesses can streamline processes, improve efficiency, and ultimately secure a competitive advantage.

Choosing the Right Supply Chain Technologies for Your Retail Business

With a multitude of supply chain technologies available, selecting the right tools for your retail business can be a challenging task. Consider the following factors when evaluating potential solutions:

1. Scalability: Opt for technologies that can grow with your business and accommodate future expansion.
2. Integration: Ensure that the chosen tools can seamlessly integrate with your existing systems and software.
3. Customisation: Select solutions that can be tailored to meet the unique needs and requirements of your retail business.
4. Ease of Use: Prioritise user-friendly technologies that can be quickly adopted by your team, reducing training time and costs.
5. Cost Effectiveness: Weigh the costs and benefits of each technology, and choose those that offer the best value for your investment.

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Comprehensive Overview of Key Supply Chain Technologies for Retailers

Investing in advanced supply chain technologies can have a significant impact on a retailer's performance. These tools can help manage inventory, optimise logistics, and reduce costs, leading to increased profitability and enhanced customer satisfaction. Below, we delve into various supply chain technologies that can benefit retailers:

Advanced Planning Systems (APS)

APS tools enable retailers to optimise their supply chain planning processes through data-driven forecasting, inventory management, and production scheduling. These systems use advanced algorithms and analytics to identify patterns and trends, allowing retailers to make informed decisions and respond quickly to market changes.

Warehouse Management Systems (WMS)

A WMS streamlines warehouse operations, including inventory tracking, order fulfillment, and shipping. By automating key processes and providing real-time visibility into inventory levels, WMS tools can help retailers reduce operational costs, minimise errors, and ensure the efficient management of warehouse resources.

Transportation Management Systems (TMS)

TMS solutions optimise transportation processes, including carrier selection, route planning, and shipment tracking. By leveraging TMS tools, retailers can reduce transportation costs, improve on-time delivery rates, and enhance overall supply chain efficiency.

Automation and Robotics

Automation and robotics technologies are revolutionising warehouse and logistics operations in retail. By automating repetitive tasks and leveraging robotics for order picking and packing, retailers can increase efficiency, reduce labor costs, and minimise errors in their supply chain.

Internet of Things (IoT) and RFID Technology

IoT and RFID technologies can provide real-time visibility and tracking of products throughout the supply chain, from the manufacturer to the end customer. By implementing IoT devices and RFID tags, retailers can monitor inventory levels, track shipments, and quickly identify potential issues, allowing for proactive decision-making and more efficient supply chain management.

Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML technologies are transforming supply chain operations by enabling data-driven decision-making, predictive analytics, and advanced automation. Retailers can leverage AI-powered tools to optimise demand forecasting, enhance inventory management, and streamline logistics processes, driving significant improvements in supply chain performance.

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Real-World Success Stories: Supply Chain Technologies in Retail

Numerous retailers have successfully harnessed the power of supply chain technologies to gain a competitive edge. Some noteworthy examples include:

• Walmart: The retail giant has implemented various supply chain technologies, such as machine learning algorithms for demand forecasting and real-time inventory tracking systems, to maintain its leadership in the industry.
• Amazon: The e-commerce behemoth utilises advanced robotics and automation in its fulfillment centers, reducing labor costs and increasing efficiency. Amazon also leverages AI and ML for demand forecasting and supply chain optimization.
• Zara: The fast-fashion retailer employs sophisticated data analytics and RFID technology to optimise its supply chain and quickly respond to changing fashion trends. Zara's efficient supply chain management allows it to bring new products to market rapidly, giving it a competitive edge in the industry.

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Harnessing the Power of Supply Chain Technologies for Retail Success

In the fiercely competitive retail landscape, adopting the right supply chain technologies can be a game-changer for businesses. By carefully evaluating and implementing a range of cutting-edge tools, retailers can optimise their supply chain operations, enhance customer satisfaction, and ultimately secure a competitive advantage in the market. Investing in advanced planning systems, warehouse management systems, transportation management systems, automation, IoT, and AI-powered solutions can transform a retailer's supply chain and pave the way for long-term success.

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

The Dynamic Role of Supply Chain Consultants

The role of a supply chain consultant has evolved over time, with many professionals now identifying themselves as consultants. However, being an expert in supply chain management doesn't automatically qualify one to be a consultant. Effective supply chain consulting should focus on delivering practical, applicable solutions that establish trust, promote transformation, and empower clients with new capabilities.

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Distinguishing Supply Chain Consulting from Other Professional Services

Supply chain consulting is often confused with other terms like "professional services," "contracting," and "management consulting." However, it is essential to understand the unique characteristics that set supply chain consulting apart:

1. Building Trust: A supply chain consultant should foster a close relationship with their clients to ensure effective collaboration.
2. Driving Transformation: Supply chain consulting should lead to organisational change and improvement within the client's supply chain processes.
3. Enhancing Capabilities: The solutions provided by a supply chain consultant should leave the client with new skills and knowledge for managing their supply chain.

Moving Beyond Expertise: The Supply Chain Consulting Process

Becoming a great supply chain consultant requires more than just expertise in the field. A consultant must develop a process to achieve the goals of building trust, driving transformation, and enhancing capabilities. This involves understanding various patterns and experiences within the supply chain, providing clients with options, and communicating trade-offs for informed decision-making.

The Power of Teamwork in Supply Chain Consulting

Supply chain consulting firms often utilise teams with senior practitioners guiding junior members in research, analysis, and delivery. This collaborative approach not only enables efficient work completion but also results in better outcomes, mirroring the "teaching hospital" phenomenon.

Management Consulting: A Crucial Aspect of Supply Chain Consulting

Management consulting is a vital component of supply chain consulting, as it supports innovations in management systems that underpin significant advancements in various industries. The industrial revolution, modern manufacturing processes, and the information-centric technology revolution all relied on innovative management approaches to optimise supply chains.

Adapting to Technological Changes and Innovations in Supply Chain Consulting

The supply chain consulting industry is not immune to changes brought about by technology and innovation. The rise of digital platforms and increased accessibility to specialised information has led to a shift in how supply chain consultants add value to their clients. To stay relevant, consultants must focus on applying trusted skills to transform supply chains and transfer capabilities to their clients.

Embracing Change: The Constant in a Supply Chain Consultant's Career

The knowledge and solutions provided by supply chain consultants a decade ago are now common knowledge. To remain valuable, consultants must adapt to change and bring something new to the table in every engagement. This continuous evolution allows supply chain consultants to enable change and drive transformation within their clients' businesses.

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Defining the Role of a Supply Chain Consultant

The role of a supply chain consultant is to build trust, drive transformation, and empower clients with new capabilities in managing their supply chains. By focusing on these core principles, consultants can take pride in the impact they create and work to better articulate their unique value proposition within the supply chain industry.

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

‍trace. Sustainability Lead, Emma Woodberry recently discussed the importance of the circular economy and how organisations can deliver more sustainable outcomes via supply chain improvements.  

What is the circular economy and why is it important?

At its core, the circular economy model emphasises the importance of maximising the use of resources and minimising waste. The goal is to move away from the traditional linear approach of "take, make, and dispose" and instead, focus on creating closed-loop systems that enable resources to be reused and regenerated.

This is important because our current ways of doing business in this economy, relying on traditional linear methods, is unsustainable, and it’s leading to environmental degradation, resource depletion, and ultimately climate change. By transitioning to a circular economy, we can reduce our reliance on finite resources, reduce waste and pollution, and create a more resilient and sustainable economy.

Both consumers and governments are demanding that businesses step up and do more to contribute to driving more sustainable operations – particularly across their supply chains.

What are the benefits to an organisation or a supply chain becoming more circular?

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Supply chains are where it all starts. Supply chains are the backbone of our economy – and businesses – playing a critical role in the production, distribution, and consumption of goods and services. By improving our supply chains, we can create more efficient, resilient, and circular systems that support a sustainable economy. This can take many forms, from sourcing materials from renewable sources to implementing closed-loop production systems. By embracing circularity, companies can reduce their reliance on finite resources, decrease their carbon footprint, and create new revenue streams through the sale of recycled materials and products.

Moreover, the circular economy presents an opportunity for businesses to engage with local communities and support sustainable development goals. By prioritising the use of locally sourced materials and collaborating with local stakeholders, companies can create a more resilient and sustainable supply chain that benefits both the environment and the economy.

What are some of the challenges organisations may face when implementing circular economy principles in supply chains?

There are several challenges organisations may face when trying to implement circular economy principles in their supply chain.

1.     Establishing transparency across the supply chain tiers – From manufacturing to distribution and retail, each tier of the supply chain has a role to play in the circular economy. Understanding how the tiers interact within your own supply chain, monitoring and reporting compliance is critical to collaboration.

2.    Identifying appropriate partners – having the right expertise and resources within any partnership or collaboration will drive success. More importantly is being able to mitigate and manage risks within a partnership, avoiding reputational and trust issues.

3.     Investment required – there is a lack of infrastructure, processes, and technology to support circular practices, such as recycling facilities or reverse logistics networks. Implementing change can be costly and companies need to be willing to make this investment to recognise the long-term benefits of a circular economy.

4.     Change in culture – the need for collaboration and cooperation across the business and supply chain, as circular practices require all stakeholders to work together to close the loop. Employees will need to think differently and adopt a new set of values and principles.

5.     Regulatory barriers – there are regulatory challenges that need to be addressed to create an enabling environment for a circular economy such as high upfront costs or lack of incentives.

What advice would you give to businesses that want to adopt the circular economy principles.

You’ve made the right first step! The circular economy offers a promising path forward for businesses looking to reduce their environmental impact and drive sustainable growth. By adopting circularity principles within their supply chains, businesses can not only contribute to a more sustainable future but also unlock new opportunities for innovation, growth, and community engagement.

My advice would be to start small and focus on tangible areas where there is the most potential for impact. You don’t have to overhaul the supply chain and transform all practices, but you can unlock opportunity in collaboration with your suppliers and service providers from switching to green energy, using recycled materials in your production, or channeling your waste into local, innovative recycling streams – it all counts.

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

Effective sales and operations planning (S&OP) is critical for manufacturing organisations looking to stay competitive in today's fast-paced and complex business environment.

Sales & Operations Planning (S&OP) is a cross-functional process that is a critical component of supply chain management. It involves the coordination of sales, production, and inventory management to ensure that an organisation can meet customer demand while minimising excess inventory and avoiding stockouts. In supply chain terms, S&OP is the process of balancing supply and demand, which involves developing a demand plan based on customer forecasts, analysing production capacity, and determining the appropriate inventory levels to meet demand. The process requires collaboration and communication across different departments and stakeholders, including sales, marketing, finance, production, and logistics, to ensure that everyone is aligned around a common plan. By optimizing the balance between supply and demand, S&OP enables organisations to achieve greater efficiency and responsiveness in their supply chains, reduce costs, and improve customer satisfaction.

By aligning sales, production, and supply chain activities, S&OP enables manufacturers to optimise their operations, reduce costs, improve quality, and respond quickly to changing market conditions.

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One of the key benefits of S&OP is that it helps manufacturers to achieve better coordination between different departments and stakeholders. By providing a clear view of demand, inventory levels, and production capacity, S&OP enables manufacturers to make informed decisions that take into account the needs of all stakeholders, from sales and marketing to production and logistics.

Another important benefit of S&OP is that it can help manufacturers to reduce costs and improve efficiency. By optimising production schedules and inventory levels, manufacturers can reduce the risk of stockouts and overproduction, which can lead to waste and increased costs. Additionally, by aligning production with demand, manufacturers can avoid costly expedited shipments and other rush charges.

Effective S&OP also enables manufacturers to improve quality and customer satisfaction. By accurately forecasting demand and ensuring that production is aligned with customer requirements, manufacturers can reduce the risk of defects and delays, which can lead to dissatisfied customers and lost business. Additionally, by aligning production with demand, manufacturers can better manage product lifecycle transitions and minimise the risk of excess inventory.

Finally, S&OP enables manufacturers to respond quickly to changing market conditions and emerging opportunities. By regularly reviewing and updating their plans, manufacturers can adapt to changes in demand, raw material availability, and other factors that can impact their operations. This enables manufacturers to stay nimble and competitive, even in the face of unexpected challenges or disruptions.

Effective sales and operations planning is critical for manufacturing organisations looking to achieve operational excellence and stay competitive in today's dynamic business environment. By aligning sales, production, and supply chain activities, S&OP enables manufacturers to optimise their operations, reduce costs, improve quality, and respond quickly to changing market conditions. By investing in S&OP and continuously improving their planning processes, manufacturers can achieve long-term success and growth.

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

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.

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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.

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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

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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.

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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.
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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.
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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.
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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.
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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.

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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.
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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.
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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.

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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.
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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.
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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.
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2. Collaborative Planning: Cooperation among suppliers, manufacturers, and other supply chain stakeholders can address issues related to obsolescence, regulatory compliance, and global sourcing.
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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.
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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.

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‍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.

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

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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.

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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’.

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

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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.

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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.

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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.

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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.

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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%.

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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.

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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.

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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.