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Planning, Forecasting, S&OP and IBP
October 15, 2024
Closing the Supply Chain Planning Capability Gap
Learn how to identify and address the root causes of supply chain inefficiencies, such as reliance on expediting and mistrust in systems, with a structured improvement approach.
Has it become normal in your organisation to rely on emergency processes, like expediting or airfreighting, rather than the exception? Are your employees struggling to provide consistent customer service, despite full warehouses of stock, or working additional hours? Many businesses today face similar challenges.
Rising mistrust in systems, use of manual overrides, and continual underperformance of new product launches signal inefficiencies within supply chains. This misalignment often leads to high levels of waste, lost sales, and diminished customer trust. Addressing these challenges requires not only identifying the symptoms but also taking a deeper dive into the root causes of supply chain misalignment. In this article, we focus on ways to identify the root causes of these problems, and how to take a structured approach to resolving them.
Common Indicators of Supply Chain Misalignment
Supply chain misalignment is often evident through symptoms that disrupt business efficiency. Key signs include:
Rising use of overtime: Either at DCs or Plants, issues are being resolved with extra unplanned labour
High levels of write-offs and waste: Inventory planning gaps leading to obsolete or expired stock
Exceptions becoming the norm: Regular use of more expensive options to meet demand such as air freighting or transferring stock between locations
Distribution centres (DCs) at capacity with lost sales: DC operations are overwhelmed yet unable to meet demand
Eroding trust: A lack of confidence from suppliers and customers
Mistrust in systems: Heavy reliance on human intervention and excessive manual checks
Getting to the Root Cause of Supply Chain Misalignment
To truly resolve inefficiencies in supply chain operations, it’s essential to go beyond surface-level issues and identify the root causes. Misalignments can stem from a combination of structural gaps and foundational capability weaknesses, which collectively impact overall performance. By dissecting these core elements, organisations can begin to understand the critical factors holding back their supply chain from optimal functionality.
Foundational Capabilities
People: Does your organisation depend heavily on a few key individuals? Not only does this increase operational risk if those individuals are unavailable or leave the organisation, it can impede the organisation’s ability to undertake strategic projects
Processes: Are supply chain processes well-defined and followed consistently? Knowledge sharing, documenting of processes and upskilling of the whole team is critical for delivering quality outcomes.
Technology: Are current systems and tools fully integrated, and do they streamline key processes to support your supply chain? Relying on outdated or disconnected technologies can prevent seamless planning and execution.
Data & Insights: Is your data accurate and timely? Are you spending more time collecting data than analysing it? Without reliable data, supply chain decisions may be based on incorrect assumptions, leading to misaligned strategies.
Structural Enablers
Organisational Structure: Are roles and responsibilities within your supply chain clearly defined and aligned with your business model? An unbalanced structure can lead to inefficiencies or misalignment of goals and initiatives across the organisation.
Governance: How are supply chain decisions made, and are they aligned with the broader business strategy? Effective governance is essential for coordinating activities across the supply chain and ensuring compliance with best practices.
KPIs & Incentives: What behaviours are being driven by your current KPIs and incentive structures? Misaligned KPIs can encourage actions that may benefit short-term performance but harm long-term goals, such as overemphasis on production speed at the cost of quality or customer satisfaction. Are the right performance metrics in place to encourage collaboration, efficiency, and innovation across your supply chain?
A Structured Approach to Supply Chain Planning Improvements
Effective supply chain transformation is rooted in a structured approach, designed to diagnose, design, develop, and deliver the necessary changes.
Diagnose
The first step in any improvement initiative is diagnosing the current state of your supply chain. Key activities in this phase include:
Business process discovery
Issue, inefficiency, and bottleneck identification
Root cause analysis
Impact quantification
Design
Once the root causes are identified, the next step is to design tailored solutions that address those gaps. Key activities may include:
Target state capabilities determination
Business process and capability roadmap development
Solution architecture design
Business case creation
Develop
After designing the necessary improvements, the focus shifts to developing the solution. This involves the hands-on building and testing of new processes, systems, or tools. Key activities in this phase include:
Solution build and test
Capability development
Pilot testing and deployment planning
Deliver
The final phase is delivering the solution across the entire organisation. This requires careful management to ensure that the improvements are fully implemented and deliver the expected results. Key activities to support this phase include:
Project management and implementation support
Change management
Results delivery and value realisation
Building the Business Case for Change
A robust business case forms the backbone of any successful supply chain transformation. This involves quantifying the expected benefits of improved planning capabilities.
Current Capability Analysis: Evaluate the existing supply chain planning capabilities across people, processes, policies, and technology.
Gap Modelling: Compare the organisation’s current capabilities to improved practices, suitable to the organisations size, investment appetite and perceived ROI, identifying the areas with the most potential for improvement.
Targeted Business Case: Develop a business case that targets the most critical capability gaps and outlines the expected ROI.
Typical benefits of improving supply chain planning include:
Revenue Growth: Increased sales through improved availability and forecasting.
Cost Reduction: Lower inventory carrying costs and a healthier mix of inventory, reducing waste and obsolescence.
Operational Efficiency: Better labour utilisation and fewer emergency orders due to enhanced capacity management.
Optimised Working Capital: Streamlined inventory levels, supported by improved planning processes.
Next steps
Trace Consultants have the flexibility, knowledge, and experience to provide hands-on support across any or all steps in the Supply Chain Planning Improvement process. If your organisation is experiencing any of these symptoms or seeking ways to unlock value in your supply chain, contact the trace. team today.
Adam Kidd | Senior Manager
Mathew Tolley | Partner
Tim Fagan | Senior Manager
Abby Hodgkiss | Consultant
Planning, Forecasting, S&OP and IBP
October 14, 2024
Optimising FMCG Supply Chain Design: Driving Efficiency and Competitive Advantage
FMCG companies can unlock efficiency and competitive advantage through strategic supply chain design. Explore the benefits of optimising network design, warehouse layout, demand planning, and S&OP.
The fast-moving consumer goods (FMCG) sector faces unique supply chain challenges due to high product volumes, rapid turnover rates, and consumer demand for variety and quick delivery. For FMCG organisations, supply chain design is a critical factor in maintaining profitability, staying competitive, and meeting customer expectations.
Effective FMCG supply chains must balance efficiency, cost management, and flexibility while adapting to seasonal variations, shifting consumer preferences, and unpredictable market conditions. Investments in supply chain design—especially in network optimisation, warehouse layout, demand planning, replenishment technology, and integrated planning processes—are key to driving performance improvements across the production and distribution spectrum.
In this article, we will explore the benefits of optimising supply chain design for FMCG organisations, delving into the value of network design, warehouse optimisation, advanced demand planning, and the importance of Sales & Operations Planning (S&OP). Additionally, we will discuss how Trace Consultants can support FMCG companies in Australia and New Zealand to create resilient, agile, and cost-effective supply chains that improve customer satisfaction and profitability.
The Importance of Supply Chain Design for FMCG Companies
The FMCG industry operates on tight margins and high volumes, making supply chain efficiency a critical element of success. A well-designed FMCG supply chain enables companies to respond quickly to market demand, reduce costs, and manage the complexities of short product lifecycles. Supply chain disruptions, bottlenecks, or inefficiencies can have significant impacts on profitability, customer service, and market share.
Supply chain design in the FMCG sector is about ensuring that products are sourced, manufactured, stored, and distributed in the most cost-effective and efficient manner. This requires the careful coordination of manufacturing plants, distribution centres (DCs), and transportation networks to reduce lead times, optimise production cycles, and minimise inventory holding costs.
Key areas for FMCG organisations to focus on in their supply chain design include network optimisation, warehouse layout, demand planning, and S&OP. Each of these elements plays a crucial role in improving operational performance and delivering a more resilient, responsive supply chain.
1. Network Design: Optimising the FMCG Distribution Network
The foundation of an efficient FMCG supply chain is an optimised network design. Network design refers to the strategic positioning of production facilities, distribution centres, and inventory stocking points to ensure that products can be delivered quickly and cost-effectively to customers.
In the FMCG sector, network design must account for several variables, including product shelf life, regional demand, transportation costs, and production capacity. Many FMCG companies operate on a national or global scale, meaning their supply chains need to be both flexible and robust enough to adapt to varying market conditions.
Benefits of network optimisation for FMCG companies include:
Cost reduction: By positioning DCs and manufacturing plants closer to key markets, FMCG organisations can reduce transportation costs, decrease fuel consumption, and improve sustainability.
Improved service levels: A well-designed network allows FMCG companies to reduce lead times and improve delivery accuracy, ensuring that products are available when and where customers need them.
Scalability and agility: An optimised network is flexible enough to respond to market changes, including seasonal demand fluctuations or new product launches, and can quickly adjust to accommodate these shifts.
For instance, a large beverage manufacturer might optimise its supply chain network by strategically placing production plants closer to high-consumption regions to reduce transportation times, minimise product spoilage, and meet customer expectations for quick delivery. This level of planning allows FMCG companies to compete in a fast-paced, demand-driven environment.
2. Warehouse Layout Optimisation: Maximising Throughput and Reducing Costs
Warehouse layout optimisation is particularly critical in FMCG supply chains, where high volumes of goods need to be processed quickly, accurately, and cost-effectively. An optimised warehouse layout ensures that products flow smoothly through the facility, from receiving to storage, order picking, packing, and shipping, reducing lead times and improving overall operational efficiency.
Key components of warehouse layout optimisation for FMCG companies include:
Maximising storage space: FMCG companies often deal with thousands of SKUs, from raw materials to finished goods. Efficient storage solutions, such as high-density racking, vertical storage systems, and automated storage and retrieval systems (AS/RS), can maximise space utilisation and improve accessibility to high-turnover products.
Streamlining picking and packing processes: Order picking is one of the most labour-intensive and costly processes in an FMCG warehouse. By optimising the layout—using techniques like zone picking, wave picking, or automated picking technologies—FMCG companies can minimise picking times, reduce errors, and accelerate order processing.
Efficient product flow: In a high-volume FMCG warehouse, smooth product flow is essential to avoid bottlenecks. An optimised layout ensures that raw materials, work-in-progress goods, and finished products move efficiently through the warehouse, from receiving to outbound shipping.
Automation: Incorporating automation technologies—such as conveyor belts, robotics, and AGVs—helps FMCG companies handle larger volumes of goods with fewer manual interventions, reducing labour costs and improving throughput.
Example: A large FMCG company might implement an automated storage and retrieval system (AS/RS) in its distribution centre to handle fast-moving consumer goods more efficiently. This system would reduce the time it takes to retrieve and ship products, improve picking accuracy, and allow the company to handle peak periods without increasing labour costs.
Warehouse optimisation not only helps improve throughput but also enhances the ability to manage complex product portfolios and maintain the high service levels demanded by FMCG customers.
3. Demand Planning and Replenishment Technology: Improving Forecast Accuracy and Reducing Waste
Demand planning and replenishment technologies are essential for FMCG companies that need to manage large, diverse product lines with short shelf lives and fluctuating demand. By investing in advanced forecasting tools and replenishment technologies, FMCG companies can better anticipate customer demand, reduce stockouts, and minimise the risk of overproduction or product obsolescence.
Key benefits of demand planning and replenishment technologies in FMCG include:
Enhanced forecasting accuracy: Modern demand planning tools leverage historical sales data, real-time market trends, and advanced algorithms to predict demand more accurately. This allows FMCG companies to better manage inventory levels, align production schedules, and reduce waste.
Optimised inventory levels: Accurate demand forecasting reduces the need for excess inventory, freeing up warehouse space and reducing carrying costs. For perishable goods, this is especially important, as it minimises the risk of spoilage or waste.
Automated replenishment: Replenishment technologies automate the process of reordering stock, ensuring that inventory is always maintained at optimal levels. This reduces manual intervention and helps FMCG companies meet customer demand without stockouts.
For FMCG organisations dealing with seasonal spikes in demand—such as increased sales during holiday periods or promotional campaigns—advanced demand planning tools allow for better anticipation of these peaks, ensuring that the right amount of product is available when needed, without overstocking.
4. Sales and Operations Planning (S&OP): Aligning Manufacturing with Market Demand
Sales and Operations Planning (S&OP) is a critical process for aligning manufacturing operations with market demand. In the FMCG sector, where production cycles must respond quickly to changes in consumer preferences, S&OP helps organisations maintain the delicate balance between supply and demand.
S&OP brings together key stakeholders from across the business—sales, marketing, finance, and supply chain management—to create a unified plan that synchronises production with market forecasts, promotional activities, and sales targets.
Benefits of S&OP for FMCG companies include:
Improved demand-supply alignment: S&OP helps FMCG organisations match production schedules with customer demand, ensuring that they are not overproducing or underproducing key products.
Faster decision-making: With cross-functional collaboration, FMCG companies can quickly make informed decisions about product launches, pricing strategies, and promotional campaigns, while keeping supply chain constraints in mind.
Enhanced agility: S&OP allows FMCG organisations to respond rapidly to market changes—whether it’s an unexpected spike in demand or a disruption in the supply chain—without impacting service levels.
A well-implemented S&OP process helps FMCG companies balance production efficiency with customer responsiveness, ensuring they can meet demand without holding excess inventory or missing out on sales opportunities.
How Trace Consultants Can Help FMCG Organisations in Australia and New Zealand
FMCG organisations in Australia and New Zealand face unique supply chain challenges, from managing large product volumes and navigating regional distribution networks to responding to consumer demand in real time. Trace Consultants is well-positioned to support FMCG companies in optimising their supply chain operations through expert guidance in network design, warehouse layout, demand planning, and S&OP.
Trace Consultants offers a range of services to help FMCG organisations improve supply chain performance:
Network Optimisation: Trace Consultants helps FMCG companies design efficient, scalable distribution networks that reduce transportation costs, improve delivery speed, and enhance service levels across Australia and New Zealand.
Warehouse Layout Optimisation: With extensive experience in warehouse design, Trace Consultants can optimise space utilisation, streamline product flow, and implement automation solutions to improve throughput and reduce costs.
Demand Planning and Replenishment Technologies: Trace Consultants provide advanced forecasting tools and replenishment strategies that help FMCG companies manage inventory more effectively, reduce waste, and meet customer demand with precision.
S&OP Implementation: Trace Consultants assist FMCG organisations in integrating S&OP processes, ensuring alignment between production schedules and market demand while improving cross-functional collaboration.
With deep expertise in supply chain design, Trace Consultants can help FMCG organisations in Australia and New Zealand build agile, resilient, and efficient supply chains that drive operational excellence and competitive advantage.
For FMCG companies, supply chain design is more than just an operational necessity—it’s a strategic asset that drives efficiency, cost reduction, and customer satisfaction. By investing in network optimisation, warehouse layout design, advanced demand planning, and S&OP processes, FMCG organisations can enhance their ability to meet market demand, reduce operational costs, and stay competitive in a fast-paced, ever-changing industry.
With the support of Trace Consultants, FMCG organisations in Australia and New Zealand can optimise their supply chain operations to navigate the challenges of today’s market, ensuring long-term success and profitability.
Strategy & Design
October 14, 2024
Retail Supply Chain Design: The Benefits of Optimising Network, Warehouse, and Demand Planning | Trace Consultants
Retailers can unlock efficiency and competitive advantage through strategic supply chain design. Learn about the benefits of network design, warehouse optimisation, demand planning, and sales & operations planning.
In today’s highly competitive retail landscape, supply chain design is a key differentiator for success. Retailers must carefully manage their supply chain infrastructure—from network design and warehouse layout to demand planning and replenishment technologies—to stay competitive, reduce costs, and meet customer expectations. With growing complexity in omnichannel retailing and increasing consumer demands for faster deliveries and personalised experiences, investing in a well-designed supply chain is no longer optional but essential.
Retailers in Australia and New Zealand, like their global counterparts, are feeling the pressure to optimise their supply chains. With fluctuating demand, rising operational costs, and the need for flexibility in fulfilment models, supply chain efficiency is critical for sustaining profitability. This article will explore the benefits of investing in network design, warehouse layout optimisation, demand planning, replenishment technologies, and Sales & Operations Planning (S&OP). We will also discuss how Trace Consultants can support retail organisations in Australia and New Zealand in developing robust, future-proof supply chains.
Why Supply Chain Design is Crucial in Retail
Retailers are navigating a landscape where customer expectations are continually evolving, competition is fierce, and external disruptions—such as supply chain shocks or environmental crises—can significantly impact operations. A well-designed supply chain enables retailers to meet these challenges by ensuring that their distribution networks, warehouses, and inventory systems are optimised for efficiency, flexibility, and resilience.
Supply chain design goes beyond the operational—it's about strategic alignment between business goals and the systems that move products from suppliers to customers. A carefully crafted supply chain can reduce costs, increase speed to market, and allow for agility when responding to shifts in demand or external pressures.
The key areas of focus for any retailer's supply chain design include network design, warehouse layout optimisation, demand planning, and replenishment, along with an integrated Sales & Operations Planning (S&OP) process. Let’s dive deeper into each of these areas and explore their benefits.
1. Retail Network Design: Optimising Distribution for Efficiency
Retail network design focuses on the physical flow of goods from suppliers through distribution centres (DCs) and fulfilment centres to retail stores or directly to consumers. Retailers must make decisions about the location and number of DCs, transportation routes, and where to stock inventory based on customer demand patterns.
Investing in network optimisation offers several benefits:
Cost reduction: Strategic placement of DCs close to high-demand regions reduces transportation costs, delivery times, and carbon emissions.
Improved customer service: With products stored closer to customers, retailers can offer faster delivery, boosting customer satisfaction and loyalty.
Scalability and flexibility: A well-optimised network is flexible enough to scale with growth, accommodate new sales channels (e.g., omnichannel fulfilment), and respond to market shifts or supply chain disruptions.
Retailers adopting an omnichannel approach—where customers interact across online, in-store, and click-and-collect options—require a network design that seamlessly integrates all channels. By investing in network design, retailers ensure they can meet customer expectations, regardless of how or where the customer chooses to shop.
2. Warehouse Layout Optimisation: Enhancing Efficiency and Scalability
Warehousing is the backbone of the retail supply chain. A well-designed warehouse enables smooth, cost-effective operations that ensure products are stored, picked, packed, and shipped efficiently. As retail demand increases in complexity, warehouse design becomes crucial in keeping operations streamlined and scalable.
Warehouse layout optimisation focuses on the physical layout, design, and operational workflows within a warehouse to improve efficiency, reduce waste, and maximise productivity. Here's why investing in warehouse layout optimisation is critical:
Space utilisation: An optimised warehouse layout maximises the use of available space, ensuring that storage capacity is fully utilised while leaving enough room for efficient product flow and equipment movement. This often involves implementing high-density storage solutions such as vertical racking systems, mezzanines, or automated storage solutions.
Picking and packing efficiency: Warehouse picking and packing processes are where much of the cost and time are concentrated. Retailers can optimise this through thoughtful layout design—minimising walking time for pickers, implementing zone picking (where pickers focus on one section of the warehouse), or using automation such as robotic picking systems.
Product placement: In an optimised warehouse, products are stored based on their velocity (sales rate). Fast-moving items are placed closer to the picking stations, reducing travel time and speeding up order fulfilment. Seasonal or high-turnover products are often placed in prime locations, while slower-moving items can be stored further back.
Scalability: A well-designed warehouse layout allows for future growth. Retailers should consider their long-term storage needs, making room for additional stock or new product lines without having to invest in costly expansions or redesigns.
Automation and technology: Automation plays a critical role in modern warehouse operations. Technologies such as automated guided vehicles (AGVs), automated storage and retrieval systems (AS/RS), and robotics can enhance picking and packing efficiency, reduce labour costs, and improve accuracy.
Example: A large e-commerce retailer might optimise its warehouse by using a combination of vertical storage systems and conveyor belts to reduce the time it takes to move products from storage to shipping areas. By introducing automation into their layout, the retailer can handle a higher volume of orders with fewer staff, cutting operational costs and improving throughput.
An optimised warehouse layout not only reduces costs but also improves the ability to meet customer demand more quickly and accurately. In retail, where speed to market is critical, a well-designed warehouse can provide a significant competitive advantage.
3. Demand Planning and Replenishment Technology: Ensuring Stock Availability
Demand planning and replenishment are crucial for maintaining the delicate balance between too much and too little inventory. Retailers need accurate demand forecasts to ensure that stock levels align with customer demand while avoiding costly overstocks or stockouts.
Advanced demand planning and replenishment technologies provide retailers with the tools to automate and optimise these processes. These technologies leverage data analytics, machine learning, and real-time market insights to predict future demand, allowing retailers to adjust inventory levels accordingly.
Benefits of investing in demand planning and replenishment technologies include:
Increased forecasting accuracy: Modern demand planning tools incorporate factors such as sales history, seasonality, and market trends to produce more accurate forecasts. Machine learning algorithms continually improve these forecasts based on new data.
Inventory optimisation: With more accurate forecasts, retailers can reduce excess stock while ensuring that popular items remain available. This reduces carrying costs and improves cash flow.
Automated replenishment: Replenishment technologies automatically reorder products when inventory falls below a set threshold, minimising manual effort and ensuring consistent stock availability.
For omnichannel retailers, integrating demand planning with inventory management systems ensures that stock levels are coordinated across all channels—whether in-store, online, or in fulfilment centres. This enables retailers to provide a seamless shopping experience and avoid stockouts, especially during peak shopping periods or promotional events.
4. Sales and Operations Planning (S&OP): Aligning Supply with Demand
Sales and Operations Planning (S&OP) is a key process for aligning a retailer's supply chain activities with its overall business objectives. S&OP involves cross-functional collaboration between sales, marketing, finance, and supply chain teams to create an integrated plan that balances demand forecasts with supply capabilities.
Investing in S&OP processes enables retailers to synchronise their operations with real-time demand, improving decision-making and allowing the business to be more agile in responding to market changes.
Benefits of S&OP for retail organisations include:
Improved alignment: S&OP ensures that demand forecasts are aligned with supply chain activities, helping to avoid overproduction or underproduction.
Faster response to market changes: Retailers can quickly adjust their plans based on shifts in demand, new product launches, or promotional campaigns.
Better decision-making: S&OP provides a structured process for evaluating trade-offs between different business functions, ensuring that supply chain decisions are aligned with financial and customer service goals.
By integrating S&OP into their supply chain strategy, retailers in Australia and New Zealand can improve the accuracy of their demand forecasts and better allocate resources to meet both short-term and long-term goals.
How Trace Consultants Can Help Retail Organisations in Australia and New Zealand
For retailers in Australia and New Zealand, developing a robust, efficient, and future-proof supply chain requires expert guidance. Trace Consultants has extensive experience in helping retail organisations optimise their supply chains through advanced strategies in network design, warehouse optimisation, demand planning, and S&OP.
Trace Consultants provides a range of services tailored to the unique needs of the retail industry, including:
Retail Network Optimisation: Trace Consultants can assist retailers in strategically designing their distribution networks, ensuring that products are stored and delivered efficiently to meet customer demand while minimising costs.
Warehouse Layout Optimisation: With expertise in warehouse design, Trace helps retailers optimise space utilisation, streamline picking and packing processes, and implement automation to drive operational efficiency and scalability.
Demand Planning and Replenishment Solutions: Trace Consultants offer advanced tools and technologies to help retailers improve forecasting accuracy, optimise inventory levels, and automate replenishment to ensure stock availability across all channels.
S&OP Integration: By implementing S&OP processes, Trace helps retailers align their supply chain operations with broader business objectives, enabling faster decision-making and improved demand-supply synchronisation.
Through their in-depth knowledge and proven track record, Trace Consultants empowers retail organisations to enhance their supply chain performance, reduce operational costs, and deliver a superior customer experience.
In today’s dynamic retail environment, supply chain design is crucial for maintaining competitiveness and profitability. Retailers who invest in optimising their network design, warehouse layout, demand planning, and S&OP processes will be better positioned to meet customer demands, reduce costs, and drive long-term growth.
By partnering with experts like Trace Consultants, retailers in Australia and New Zealand can ensure that their supply chains are built to withstand market fluctuations, embrace technological advancements, and remain agile in the face of future challenges.
Strategy & Design
October 14, 2024
The Importance of Back-of-House (BOH) Logistics in Large-Scale Sporting Venue Developments
Designing large-scale sporting venues requires more than just a great fan experience. Discover how integrating BOH logistics ensures operational efficiency and seamless event delivery.
When designing large-scale sporting venues, much of the focus typically centres around the fan experience, the aesthetics of the stadium, seating capacity, and advanced technology to enhance spectator engagement. While these elements are essential, the success of any large sporting venue also hinges on an often-overlooked aspect—back-of-house (BOH) logistics.
BOH logistics encompasses the movement of goods, services, and people that occur behind the scenes but are crucial to the seamless operation of the venue. From food and beverage (F&B) deliveries to waste management, staff movement, and event preparation, BOH logistics ensures that a sporting venue functions efficiently, supporting the front-end operations that fans experience.
In this article, we will explore the key considerations for BOH logistics in large-scale sporting venue developments, outlining why it is essential for long-term operational efficiency. We'll also touch on how Trace Consultants’ BOH Logistics Excellence Framework, commonly applied to hospitals and healthcare facilities, can be adapted to the sports and entertainment industry to ensure smooth operations during high-profile events.
Why BOH Logistics is Critical in Sporting Venues
Behind every exciting match or world-class event at a sporting venue, a complex network of logistical operations ensures that everything runs smoothly. Whether it’s ensuring that concession stands are well-stocked, that security staff are where they need to be, or that waste is managed efficiently, BOH logistics is the lifeblood of the venue’s operations.
For large-scale sporting events, particularly those that draw tens of thousands of fans, the pressure on BOH logistics increases exponentially. The stakes are high—any disruption in the flow of goods or services can lead to long queues, dissatisfied fans, safety risks, and even financial losses. As a result, it is crucial for designers, developers, and operational managers to integrate BOH logistics into the master plan of any large sporting venue from the outset.
Key Considerations for BOH Logistics in Sporting Venue Design
Loading Docks and Deliveries One of the most important aspects of BOH logistics is the efficient movement of goods into and out of the venue. In a large stadium or arena, this includes everything from food and drink supplies to merchandise, maintenance equipment, and security infrastructure.
The loading dock should be strategically placed to allow easy access for delivery trucks while minimising disruptions to fans and public areas. Inadequate loading dock capacity or poor access can lead to delivery delays, which may result in under-stocked concession stands or late-stage preparations, negatively affecting the event experience.
Designers must also consider how goods move from the loading dock to various points within the venue, ensuring that there are clear, efficient flow paths to concession stands, kitchens, and storage areas.
Food & Beverage (F&B) Logistics One of the key revenue streams for sporting venues is F&B sales. Ensuring that fans receive high-quality, fresh food and beverages in a timely manner requires an efficient supply chain and logistics operation.
Sporting venues must be designed with adequate storage facilities for F&B supplies, and kitchens must be strategically located to allow for quick replenishment of concession stands. Additionally, the movement of goods between kitchens, storage areas, and service points should be planned to minimise disruption during the event. Inadequate planning can lead to long queues, dissatisfied fans, and potential revenue loss.
Waste Management Waste management is a significant operational challenge for large sporting venues, particularly during high-attendance events. Effective waste management systems should be designed into the venue’s BOH logistics from the start, ensuring that waste is collected, transported, and disposed of efficiently.
To minimise the impact on both the front-of-house experience and the operational team, waste disposal areas should be located away from high-traffic fan zones and have easy access for removal trucks. Planners should also consider implementing sustainable waste management practices, such as recycling and composting, to align with modern environmental standards.
Staff Movement and Access Efficient movement of staff throughout the venue is critical for ensuring that operations run smoothly during an event. This includes everyone from catering staff to security personnel, maintenance workers, and event management teams.
Sporting venues should be designed with dedicated BOH corridors and pathways that allow staff to move quickly and efficiently between key areas of the venue without interfering with the fan experience. For example, security staff need to be able to access high-risk areas easily, while catering teams should have unobstructed access to kitchens and service points. This allows staff to remain behind the scenes while keeping front-of-house operations seamless.
Storage and Inventory Management Large-scale sporting venues require extensive storage for a range of goods, including F&B supplies, merchandise, maintenance tools, medical supplies, and even sports equipment. Efficient storage and inventory management are critical for ensuring that these supplies are readily available when needed.
A well-designed BOH logistics system should include ample storage space, strategically located throughout the venue to support different operational needs. For example, F&B supplies should be stored close to kitchens and service points, while maintenance equipment should be housed near critical infrastructure areas. Implementing real-time inventory management technology can help venue operators track stock levels and automatically reorder supplies as needed.
Security Logistics The safety and security of fans, athletes, and staff is a top priority for any sporting venue. Effective security logistics are essential for ensuring that staff can respond to incidents quickly and effectively while maintaining the safety of the venue.
BOH logistics should include designated areas for security staff, control rooms for monitoring, and efficient routes for moving personnel to critical areas. Additionally, security checkpoints and screening equipment should be integrated into the venue design to ensure that all deliveries and movements of goods into the venue are secure.
The Role of Technology in Sporting Venue Logistics
Just as technology has revolutionised logistics in other sectors, it plays a key role in the management of BOH operations in sporting venues. By leveraging advanced logistics solutions, venues can automate many of the processes associated with goods delivery, inventory management, and staff scheduling.
Real-Time Inventory Management Sporting venues can implement technology solutions that enable real-time tracking of inventory levels, helping them to keep F&B supplies, merchandise, and maintenance tools stocked without excess. RFID tagging, barcoding, and cloud-based systems provide venue operators with real-time visibility into stock levels, allowing them to make informed decisions and avoid shortages during events.
Predictive Analytics By analysing historical data, venues can use predictive analytics to forecast demand for various goods and services during events. For example, a venue may be able to predict a surge in demand for certain food and beverage items based on the time of day or the type of event. This helps operators better prepare and ensure that the necessary supplies are on hand.
Staff Scheduling and Management Managing large numbers of staff during events can be challenging. Technology solutions such as workforce management software enable venue operators to schedule staff efficiently, ensuring that the right number of workers is available in each area of the venue at any given time.
Route Optimisation Similar to logistics solutions used in other sectors, sporting venues can leverage route optimisation technology to ensure that goods are delivered to their intended destinations within the venue efficiently. This reduces travel time, minimises disruptions, and ensures that F&B supplies and other critical goods reach their destinations on time.
Trace Consultants’ BOH Logistics Excellence Framework for Sporting Venues
While originally developed for healthcare facilities, Trace Consultants’ BOH Logistics Excellence Framework is highly applicable to the design and operation of large sporting venues. The framework provides a comprehensive approach to managing the flow of goods, services, and people, ensuring that BOH operations run smoothly and efficiently.
Physical Design: The framework places emphasis on the physical layout of the venue, ensuring that loading docks, storage areas, kitchens, and waste disposal zones are strategically located for efficient operation. By integrating BOH logistics into the overall venue design, Trace Consultants help venues optimise flow paths and reduce operational bottlenecks.
Planning and Execution: Trace Consultants provide expertise in planning demand and replenishment, ensuring that F&B supplies, merchandise, and other critical goods are available when needed. They also assist with workforce scheduling and security logistics to ensure that events run smoothly.
Technology Integration: Just as in healthcare facilities, technology is a key enabler in sporting venue logistics. Trace Consultants work with venue operators to implement advanced logistics solutions that automate inventory management, track real-time data, and optimise staff scheduling.
The design and development of large-scale sporting venues go far beyond the fan experience and aesthetics. Effective BOH logistics is essential for ensuring that these venues operate seamlessly, supporting everything from F&B sales to security, staff movement, and waste management.
By integrating BOH logistics into the overall design process, sporting venues can enhance operational efficiency, reduce costs, and ensure a smooth experience for both fans and staff. Trace Consultants, through their BOH Logistics Excellence Framework, are helping developers, architects, and venue operators optimise the logistics that power the world’s most iconic sports venues.
Discover how Trace Consultants’ BOH Logistics Excellence Framework is helping architectural firms and building authorities design hospitals that balance clinical needs with operational efficiency.
The design and construction of large-scale healthcare facilities are becoming more complex as hospitals and health services seek to balance clinical needs with operational efficiency. Traditionally, the focus of healthcare infrastructure projects has been on patient-facing spaces—wards, operating theatres, and emergency departments—while the back-of-house (BOH) logistics, which ensure the smooth flow of supplies, staff, and services, have often been overlooked.
However, a shift is occurring as architectural firms and state building authorities increasingly recognise the critical role that BOH logistics play in the overall performance of healthcare facilities. These stakeholders are engaging Trace Consultants to bring an operational perspective to the design process, ensuring that logistics, supply chains, and facility flows are optimised from the outset.
Using their BOH Logistics Excellence Framework, Trace Consultants are leading the charge in bridging the gap between architectural design and healthcare operations, ensuring that hospitals are built to function seamlessly and efficiently.
The Need for an Operational Perspective in Healthcare Facility Design
Hospitals are unique environments where operational efficiency directly impacts patient care. Whether it’s ensuring that medical consumables are available when needed, that food and linen services are delivered on time, or that waste is removed in a safe and timely manner, the logistics behind the scenes are critical to the overall functioning of the facility. Yet, these operational considerations are often given less priority during the planning and design phases of new healthcare developments.
This is where the expertise of Trace Consultants becomes invaluable. By working closely with architects and state building authorities, Trace Consultants ensure that operational requirements—such as the movement of goods, waste, and people—are factored into the overall facility design. Their focus on BOH logistics helps avoid common pitfalls such as congestion in service corridors, inefficiencies in loading dock management, or inadequate space for central and bulk stores, all of which can lead to higher operational costs and disruptions in service delivery.
Trace Consultants’ BOH Logistics Excellence Framework
The Trace Consultants Healthcare Supply Chain Excellence Framework (as illustrated in the attached diagram) provides a holistic approach to designing healthcare facilities that function efficiently from both a clinical and operational perspective. The framework spans multiple layers, from physical design and planning to execution and operational enablers, ensuring that every aspect of hospital logistics is considered.
Physical Design Considerations The framework highlights the critical physical design elements that contribute to an efficient healthcare facility, including:
Loading Dock Management & Flow Paths: Ensuring that the flow of goods, supplies, and waste in and out of the hospital is smooth and efficient.
Ward Layout & Storage Options: Designing wards with appropriate storage solutions for medical supplies and equipment to reduce delays in care.
Central and Bulk Stores: Allocating space for central stores to hold essential supplies, reducing the need for frequent restocking.
Other BOH Services: Effective management of services such as laundry, waste, and parking facilities, all of which impact the day-to-day operation of the hospital.
Planning and Operational Design Planning forms the backbone of the framework, ensuring that operations are aligned with clinical service delivery:
Demand Planning & Replenishment: Effective planning for the supply of medical consumables, pharmaceuticals, and other critical supplies.
Clinical Service Offering & Activity-Based Funding: Integrating operational planning with clinical service offerings to ensure that resources are allocated efficiently.
Central Purchases & Clinical Preferences: Managing procurement to align with both clinical preferences and cost considerations.
Sourcing & Supplier Management: Establishing reliable supplier relationships to ensure the timely delivery of high-quality goods and services.
Execution In the execution phase, the framework ensures that hospital services are delivered seamlessly:
Laundry, Waste, and Kitchen Services: Coordinating BOH services such as laundry, waste management, and food preparation to support patient care.
Dock to Ward Flow & Cost to Serve: Streamlining the movement of goods from the loading dock to wards to reduce delays and minimise costs.
Workforce Scheduling: Ensuring that staff are deployed efficiently to meet the hospital’s operational needs.
Surgeon and Clinician Experience: Supporting clinicians by ensuring that the necessary equipment and supplies are available when needed, allowing them to focus on patient care.
Enablers The success of any healthcare facility depends on its infrastructure and operational enablers:
Infrastructure: Designing facilities with adequate infrastructure to support logistics operations.
People: Training and deploying skilled staff who understand the complexities of healthcare logistics.
Process: Implementing efficient processes that streamline operations and minimise waste.
Technology: Leveraging technology to automate supply chain processes and improve real-time visibility of inventory and logistics.
Data: Using data analytics to optimise operations and make informed decisions.
Addressing Capability Gaps in Healthcare Infrastructure
Architectural firms and state building authorities have traditionally focused on the physical aspects of healthcare facility design—structural layout, patient flow, and aesthetics. However, there is growing recognition that these designs must be informed by the realities of hospital operations, particularly in BOH logistics. Trace Consultants have become a trusted partner in bridging this gap, providing an operational perspective that ensures the facility will function as efficiently as it looks.
Loading Dock Management & Flow Paths One of the most overlooked aspects of hospital design is the flow of goods into and out of the facility. Inefficient loading dock management can lead to delays in the delivery of critical supplies, congestion in service corridors, and increased operational costs. By incorporating efficient flow paths into the design, Trace Consultants help hospitals reduce bottlenecks and ensure that supplies reach their intended destinations quickly and efficiently.
Ward Layout & Storage Options Poorly designed ward layouts can lead to inefficient workflows and delays in patient care. Trace Consultants work with architects to ensure that each ward is equipped with appropriate storage solutions for medical supplies and equipment, allowing clinical staff to access what they need quickly and without disruption to patient care.
Central and Bulk Stores Effective inventory management is critical in healthcare, where having the right supplies at the right time can make a significant difference in patient outcomes. Trace Consultants ensure that central and bulk stores are strategically located within the hospital, allowing for easy access and reducing the need for frequent restocking.
How Trace Consultants Add Value
By applying their BOH Logistics Excellence Framework, Trace Consultants add significant value to healthcare infrastructure projects. Their deep understanding of supply chain logistics, combined with their ability to work alongside architects and building authorities, ensures that hospitals are designed not only to meet clinical needs but also to function efficiently from an operational perspective.
Some key areas where Trace Consultants provide value include:
Optimising Flow Paths: Reducing congestion and ensuring smooth movement of goods and people throughout the facility.
Enhancing Efficiency: Identifying and addressing potential bottlenecks before they become operational issues.
Improving Sustainability: Implementing strategies for waste minimisation, local sourcing, and sustainable supply chain practices.
Ensuring Compliance: Designing facilities that meet all relevant health, safety, and environmental regulations.
As healthcare facilities become larger and more complex, the need for an operational perspective in their design becomes increasingly apparent. Trace Consultants, with their BOH Logistics Excellence Framework, are playing a key role in ensuring that hospitals and health facilities are not only designed for clinical excellence but also for operational efficiency. By working closely with architectural firms and state building authorities, Trace Consultants help bridge the gap between design and operations, ensuring that new healthcare facilities are equipped to deliver world-class care from the moment they open their doors.
Workforce Planning & Scheduling
October 14, 2024
Best Practice Rostering & Scheduling for Aged Care Providers | Trace Consultants
Optimising rostering and scheduling in aged care can improve service reliability and reduce costs. Learn how Trace Consultants applies best practices to workforce management, balancing availability, affability, and ability.
In aged care, effective rostering and scheduling are critical to ensuring quality care, meeting regulatory standards, and controlling costs. Yet, these functions are also among the most complex, influenced by numerous upstream and downstream factors like demand forecasting, capacity planning, and real-time workforce availability. To deliver exceptional care consistently, aged care providers need to adopt best practices in rostering and scheduling. These practices must be deeply integrated into broader workforce planning, recruitment strategies, and technological enablement.
At the heart of these efforts lies a philosophy of continuous improvement, supported by data, robust processes, and the right technological tools. Trace Consultants offers a structured approach to workforce management, borrowing best practices from industries as diverse as retail, healthcare, pharmaceutical, aviation, defence, food and beverage (F&B), and hospitality to deliver highly effective solutions for the aged care sector.
This article will unpack how aged care providers can significantly enhance service reliability and reduce operational costs by adopting best practice rostering and scheduling. We will also delve into how the government’s increased focus on funding home services introduces added complexity, especially in terms of route optimisation and managing agency use.
The Role of Rostering and Scheduling in Aged Care
Rostering and scheduling in aged care are subject to both upstream and downstream activities. These include demand forecasting, recruitment, capacity planning, and daily management—all elements that must be aligned to ensure an optimised workforce. Rostering and scheduling are not isolated activities; they are integral to a provider’s overall strategy and design. When done correctly, they become the "heartbeat" of service organisations, enabling seamless service delivery and operational efficiency.
The process of rostering and scheduling can be challenging due to its nuanced nature. It involves not just the allocation of staff but balancing three essential elements—Availability, Affability, and Ability. Staff need to be in the right place at the right time, possess the appropriate skills, and must also be affable to clients to ensure a positive care experience.
A Holistic Approach to Workforce Optimisation
To achieve excellence in rostering and scheduling, aged care providers must adopt a holistic approach that integrates workforce planning, recruitment, and scheduling into a seamless operating rhythm. This requires investment in three key enablers—people, processes, and data—supported by robust technology solutions.
People: Skilled workforce planners, schedulers, and managers are critical to the success of rostering systems. They must possess the expertise to use data-driven insights to anticipate demand, forecast capacity, and adjust schedules in real-time. Investing in ongoing training and development ensures staff are equipped to handle the complexity of modern scheduling systems.
Processes: Optimising rostering and scheduling requires well-defined processes that align with broader organisational objectives. Providers should establish policies and incentives that encourage efficient scheduling and reward staff who consistently meet service and care standards. Regular reviews of these processes ensure they remain responsive to changing client needs and regulatory requirements.
Data: Data is the lifeblood of modern rostering and scheduling systems. Accurate, real-time data enables better decision-making, from forecasting future workforce needs to adjusting schedules based on daily changes in demand. By investing in data management tools and analytics, aged care providers can significantly improve the accuracy of their workforce planning efforts.
Technology: Technology plays a crucial role in streamlining workforce management. From automated scheduling tools to AI-driven analytics, modern technology solutions help providers optimise their workforce by reducing manual effort and ensuring more accurate rostering. Trace Consultants works with aged care providers to implement advanced technologies that allow for real-time adjustments, predictive scheduling, and seamless integration with other workforce management systems.
Understanding the Upstream and Downstream Influence on Rostering
Rostering and scheduling are not standalone activities—they are influenced by both upstream and downstream factors, as shown in the diagram. These include:
Upstream Activities:
Forecasting and Demand Planning: Understanding the future demand for care services is crucial to ensuring that there is adequate staffing. This involves analysing historical data, client care plans, and external factors like seasonality or public holidays that may impact care needs.
Recruitment and External Agency Planning: Workforce availability is often constrained by recruitment efforts and the use of external agencies. Effective recruitment ensures a steady supply of skilled staff, while strategic use of agencies helps fill any temporary gaps in the workforce.
Capacity Planning: This involves anticipating how many staff members will be needed at various times and locations. Capacity planning must take into account not only client needs but also staff availability, skill sets, and preferences.
Downstream Activities:
Roster, Schedule & Route Optimisation: Once staffing levels are determined, rostering systems assign workers to shifts and locations, ensuring that care needs are met efficiently. In home care, this also involves route optimisation to minimise travel time and maximise time spent with clients.
Daily Management: Even the best schedules require daily adjustments. As client needs change, staff may need to be reassigned or shifts altered to ensure care continuity. Real-time data enables these adjustments to be made seamlessly.
The Challenge of Scheduling: Balancing Art and Science
Scheduling in aged care is a delicate balance of both art and science. While technology and data play a significant role in optimising rosters, human judgement remains critical. For instance, ensuring that the "right person" is assigned to each client often requires an understanding of both the staff member's skill set and the client's preferences.
Staff must be available at the right times and in the right regions, be affable to ensure a positive client experience, and have the ability or appropriate grade level to perform the tasks required. Balancing these three factors—availability, affability, and ability—is a challenging but essential aspect of workforce management in aged care.
Rostering as the 'Heartbeat' of Service Organisations
Effective rostering and scheduling form the foundation upon which service delivery is built. In aged care, this is especially true, as the quality of care provided depends heavily on having the right staff in place at the right time.
As shown in the diagram, rostering connects various elements of the workforce planning ecosystem, from demand and capacity planning to program management and delivery. This integrated approach ensures that every aspect of care delivery is aligned with the provider’s overall strategy.
Applying Supply Chain Best Practices to Aged Care Workforce Management
Trace Consultants leverages best practices from industries like retail, healthcare, and aviation, where demand and supply balancing is critical to operational efficiency. In these industries, workforce management is treated as a key driver of business success. By applying these same principles to aged care, Trace Consultants helps providers optimise their workforce to deliver higher-quality care at a lower cost.
For instance, in retail, demand forecasting is used to predict customer behaviour and ensure that staffing levels are aligned with expected demand. Similarly, in aged care, demand forecasting helps providers anticipate client needs and schedule staff accordingly.
In aviation, route optimisation is used to minimise travel time and reduce costs. This same approach can be applied to home care services, where staff must travel between clients. By optimising routes, aged care providers can reduce travel time and improve service delivery.
Managing the Complexity of Home Care: Route Optimisation and Agency Use
The shift towards home care services, driven by government funding, has introduced added complexity to workforce management. In home care, staff must travel between clients, making route optimisation a critical aspect of scheduling.
Route Optimisation By leveraging technology used in logistics and F&B industries, aged care providers can optimise travel routes to reduce time spent in transit and maximise time spent with clients. Route optimisation tools allow providers to assign staff to clients based on geographical proximity, ensuring that care is delivered efficiently.
Managing Agency Use As demand for home care services grows, many providers rely on agency staff to fill gaps in their workforce. However, over-reliance on agencies can lead to higher costs and inconsistent care quality. By investing in better workforce planning and predictive scheduling systems, aged care providers can reduce their reliance on agencies and ensure a more stable, permanent workforce.
For aged care providers in Australia and New Zealand, the future of workforce management lies in adopting best practice rostering and scheduling techniques. By investing in process and technology redesign, providers can significantly improve service reliability, reduce costs, and ensure that the right staff are in the right place at the right time.
Trace Consultants offers a unique approach to workforce optimisation, drawing on best practices from industries like retail, aviation, and healthcare to deliver tailored solutions for the aged care sector. As the complexity of home care services continues to grow, now is the time for providers to invest in workforce management strategies that will drive operational excellence and improve client outcomes.
Workforce Planning & Scheduling
October 14, 2024
How Investing in Workforce Planning, Recruitment, and Rostering & Scheduling Can Transform Aged Care
Investing in workforce planning, recruitment, and rostering capabilities can transform service reliability and reduce costs for aged care providers. Learn how Trace Consultants applies best practices from diverse industries to help aged care organisations in Australia and New Zealand achieve operational excellence.
As the aged care sector across Australia and New Zealand grapples with rising demand, evolving regulations, and a shift towards home care services, aged care providers are increasingly recognising the need to optimise their workforce planning, recruitment, and rostering & scheduling capabilities. Operational excellence in these areas can significantly improve service reliability, reduce costs, and ultimately enhance the quality of care delivered to clients.
In this article, we will explore how process and technology redesign in workforce management can drive significant improvements. We will also examine how Trace Consultants, through leveraging best practices in demand and supply balancing from other industries such as retail, health, pharmaceutical, aviation, defence, F&B, and hospitality, can offer aged care providers the tools and strategies needed to achieve the “right person, right place, right time, right skill, and right cost” approach to care delivery. Additionally, we’ll delve into how the growing complexity of home care scheduling, driven by government funding reforms, can be effectively managed through advanced solutions.
The Growing Need for Workforce Optimisation in Aged Care
Aged care providers are currently navigating through an array of challenges—rising expectations from clients, government regulations, and an increasingly competitive talent market. The focus has shifted towards maintaining a high standard of care while managing costs. To succeed, aged care providers must invest in modern workforce management practices.
The workforce in aged care is inherently dynamic, requiring a balance between an ever-changing roster of clients and a complex mix of full-time, part-time, and contingent workers. With the added complexity of delivering care in different settings—whether in facilities or in the home—the challenges of recruitment, scheduling, and rostering have grown exponentially.
The right investment in workforce planning and rostering not only helps in managing resources more effectively but also plays a critical role in improving service delivery, client satisfaction, and compliance with governmental regulations.
The Critical Role of Process and Technology Redesign
Workforce Planning
Workforce planning is a cornerstone of operational excellence in aged care. It involves forecasting future workforce needs based on anticipated demand for services, and aligning staffing levels accordingly. For aged care providers, this includes understanding the volume and complexity of care required at different times and locations.
Modern workforce planning utilises data-driven insights to create accurate demand forecasts. By integrating real-time data on client needs, care plans, and geographical location, providers can build a more agile workforce strategy. This ensures that the right mix of staff, with the appropriate skill sets, is available at the right time.
Process redesign plays a pivotal role in improving workforce planning. By streamlining workflows, eliminating redundancies, and automating routine tasks, providers can free up resources to focus on more strategic initiatives. When combined with the right technology, such as advanced planning systems and AI-driven analytics, workforce planning can become a highly efficient and strategic function.
Recruitment and Retention
Recruitment and retention remain critical challenges in aged care, especially with the growing demand for skilled workers. Investing in a more efficient and targeted recruitment process can help providers source the right talent more effectively. Implementing technology-driven recruitment solutions—such as applicant tracking systems (ATS), video interviews, and online assessments—can reduce hiring time and ensure a better fit between candidates and roles.
Retention is equally important, and providers must create a working environment that supports long-term staff engagement. This involves offering career development opportunities, flexibility, and ensuring staff are rostered in a way that reduces burnout and maximises job satisfaction.
Rostering and Scheduling
Rostering and scheduling are at the heart of workforce optimisation. Ensuring that the right staff member is assigned to the right client, at the right time, and in the right location, requires a sophisticated approach. Traditionally, rostering in aged care has been reactive, driven by last-minute shifts and inconsistent scheduling practices.
Investing in intelligent rostering systems can transform this process. These systems analyse a range of variables, including staff availability, client needs, and geographical location, to create optimised schedules that maximise efficiency while ensuring compliance with regulatory requirements. Automation of these processes can also reduce the administrative burden, freeing up managerial resources to focus on other critical areas.
In addition to optimised rostering, providers must also consider the impact of scheduling on the workforce. Over-reliance on agency staff, last-minute changes, or poorly planned shifts can result in increased costs, staff dissatisfaction, and, ultimately, reduced quality of care. By leveraging technology that allows for predictive scheduling and advanced rostering practices, aged care providers can ensure smoother operations, greater employee satisfaction, and reduced reliance on costly agency staff.
How Trace Consultants Can Drive Operational Excellence in Aged Care
Trace Consultants is uniquely positioned to assist aged care providers in transforming their workforce management practices. Drawing on best practices from industries such as retail, health, pharmaceutical, aviation, defence, food & beverage, and hospitality, Trace Consultants applies innovative demand and supply balancing strategies to the aged care context.
Demand and Supply Balancing
In industries such as retail or aviation, managing the balance between supply and demand is crucial for operational efficiency. The same principle applies to workforce management in aged care. By optimising the balance between staff availability and client needs, aged care providers can reduce overstaffing, avoid gaps in care, and drive down operational costs.
Trace Consultants employs sophisticated demand forecasting techniques, combining historical data, real-time client information, and predictive analytics. This enables aged care providers to better predict the volume and complexity of care required on any given day, ensuring that staffing levels are always aligned with demand.
Right Person, Right Place, Right Time, Right Skill, Right Cost
One of the key challenges in aged care workforce management is ensuring the right person is available in the right place, at the right time, with the right skill set, and at the right cost. This is especially critical in home care settings, where factors like geographical location and staff availability play a significant role.
Trace Consultants helps aged care providers optimise their workforce to achieve this delicate balance. By redesigning processes and implementing advanced scheduling systems, providers can improve both the quality of care and operational efficiency. This results in fewer scheduling conflicts, reduced travel time for staff, and lower reliance on high-cost agency workers.
Managing the Complexity of Home Care Services
With the increasing emphasis from governments in Australia and New Zealand on funding home care services, aged care providers are facing a new layer of complexity in scheduling and rostering. Managing home care requires not only finding the right staff for each client but also ensuring that schedules are optimised for travel time, availability, and cost efficiency.
Route Optimisation and Scheduling
Scheduling in home care must consider geographic location, traffic conditions, and time spent with clients. This makes route optimisation a critical aspect of workforce management. By integrating route optimisation tools into their rostering systems, aged care providers can reduce travel time, improve staff utilisation, and ensure timely care delivery to clients.
Trace Consultants leverages advanced technologies and practices from the transport and logistics sector to address these challenges. By applying the same route optimisation techniques used in industries like logistics and F&B distribution, aged care providers can significantly improve scheduling efficiency, reduce costs, and enhance the reliability of care delivery.
Managing Agency Use
As aged care providers expand their home care services, they often rely on agency staff to meet fluctuating demands. However, over-reliance on agency staff can drive up costs and introduce variability into care delivery. By implementing advanced workforce planning tools and predictive scheduling systems, Trace Consultants helps providers reduce their reliance on agency workers, ensuring that a larger portion of the workforce is permanent or part-time staff.
The aged care sector in Australia and New Zealand is undergoing rapid transformation, and workforce management is at the centre of this change. By investing in improved workforce planning, recruitment, and rostering & scheduling capabilities, aged care providers can not only meet regulatory requirements but also drive significant improvements in service reliability and operational cost efficiency.
Through process redesign and the application of advanced technologies, aged care providers can achieve the right balance of staff across different settings, ensuring that clients receive the highest quality of care. Trace Consultants, with its extensive experience in applying demand and supply balancing best practices from other industries, is uniquely positioned to assist aged care providers in achieving these outcomes.
As aged care providers look to the future, the ability to effectively manage their workforce will be a critical factor in their success. The investment in workforce management processes and technologies today will lay the foundation for a more efficient, reliable, and client-centred aged care system tomorrow.
Strategy & Design
Enhancing Australia’s National Medical Stockpile (NMS) through Advanced Supply Chain Management
Explore how advanced supply chain planning technology can enhance Australia’s National Medical Stockpile, drawing on global best practices to improve demand forecasting, inventory optimisation, and risk management.
In recent years, the global healthcare sector has witnessed unprecedented disruptions, underscoring the need for resilient and adaptive supply chains. Australia’s National Medical Stockpile (NMS), an essential safeguard for public health, plays a crucial role in ensuring the availability of life-saving medical supplies during emergencies such as pandemics, natural disasters, or health crises. However, the complex and unpredictable nature of these emergencies requires that the stockpile be managed with greater precision, agility, and foresight than ever before. The effective use of modern supply chain planning technology is not just an option—it is a necessity.
This article explores how modern supply chain management tools can enhance the NMS and reviews international best practices in medical stockpile management. We will conclude with ways Trace Consultants can help the Australian Federal Government optimise the NMS through improved supply chain management.
The Role of Supply Chain Planning Technology
Supply chain planning technologies have evolved significantly, integrating advanced analytics, machine learning (ML), and artificial intelligence (AI) to provide better visibility, risk management, and operational efficiency. These capabilities are critical for managing national medical stockpiles, where the stakes are high and the cost of mismanagement can be severe.
1. Enhanced Demand Forecasting
Accurate demand forecasting is pivotal in ensuring that medical supplies are available when needed and not wasted during periods of low demand. With AI-powered forecasting tools, decision-makers can predict demand spikes during flu seasons, pandemics, or other health emergencies. These technologies analyse data from various sources—public health statistics, population demographics, and even climate conditions—to offer more precise insights, helping to avoid stockouts or overstocking.
2. Inventory Optimisation
Managing inventory in the NMS is a delicate balancing act. Too little stock can result in life-threatening shortages, while too much can lead to waste, particularly for perishable medical goods. Advanced inventory management systems can help governments automate replenishment processes, track expiration dates, and ensure the right products are in the right place at the right time. For example, dynamic inventory optimisation tools can adjust stock levels based on real-time usage and emerging risks, ensuring a balanced and cost-effective approach.
3. Real-time Supply Chain Visibility
In a crisis, quick decision-making hinges on real-time visibility into the supply chain. Modern cloud-based supply chain management platforms offer end-to-end transparency, enabling government bodies to monitor the flow of goods from suppliers to stockpile warehouses and distribution points. In addition, advanced tracking tools can monitor the condition of critical goods, such as vaccines, ensuring they are stored and transported under appropriate conditions.
4. Risk Management and Contingency Planning
With disruptions like natural disasters or global supply chain interruptions becoming increasingly common, the ability to predict and mitigate risks is critical. Predictive analytics can assess vulnerabilities in the supply chain, identifying weak links such as over-reliance on single suppliers or geographic risks. By simulating potential scenarios, these tools allow decision-makers to prepare for worst-case events with contingency stock, ensuring the supply of essential medical equipment and medications even in extreme situations.
International Best Practices
Australia is not alone in grappling with the complexities of managing a national medical stockpile. Globally, various jurisdictions have implemented innovative approaches to improve stockpile management, which can offer valuable lessons.
1. The United States: Strategic National Stockpile (SNS)
The U.S. SNS is one of the most prominent examples of a national medical reserve. Leveraging advanced logistics and supply chain management technologies, the SNS ensures that critical medical supplies and pharmaceuticals are pre-positioned for immediate deployment during emergencies. One notable feature is the use of predictive analytics to assess demand in crisis hotspots, allowing for rapid response and deployment. The SNS also regularly conducts drills to test and refine distribution strategies, ensuring preparedness.
2. Singapore: Integrated Supply Chain Platform
Singapore’s healthcare system integrates a digital supply chain platform that links suppliers, healthcare facilities, and government agencies. This system provides real-time visibility into inventory levels, allowing for dynamic reallocation of resources as demands change. By centralising data from multiple stakeholders, Singapore can ensure a faster, more coordinated response to health emergencies. It also uses blockchain technology to maintain data integrity and ensure that sensitive medical supplies are securely tracked and distributed.
3. Germany: Decentralised Stockpile Model
Germany has adopted a decentralised stockpile system, where individual states maintain their stockpiles with a central oversight body ensuring consistency and collaboration. This approach has proven effective in distributing supplies more quickly during localised crises. Germany's approach is supported by cloud-based platforms that offer visibility across different regions, allowing for the flexible movement of stock between areas experiencing high demand and those with surplus.
4. Canada: Collaborative Supply Chain Management
Canada’s approach to managing its medical stockpile is highly collaborative, involving partnerships between federal, provincial, and territorial governments. A unified digital platform allows seamless coordination between jurisdictions, ensuring that resources are shared efficiently across the country. This system has proved invaluable during crises, reducing the risk of stockouts in remote areas while preventing waste in others.
How Trace Consultants Can Assist the Federal Government
At Trace Consultants, we specialise in supply chain optimisation and operational excellence. Our expertise in advanced supply chain management, analytics, and risk mitigation positions us as a strategic partner for the Australian Federal Government in improving the NMS. Here are four ways we can assist:
1. Advanced Forecasting Models
Our consultants can develop and implement AI-powered forecasting tools that enhance the accuracy of demand predictions for medical supplies during emergencies. These models will enable the government to make data-driven decisions, ensuring preparedness for health crises.
2. Inventory and Distribution Optimisation
By utilising our inventory optimisation frameworks, we can assist in balancing stock levels to avoid overstocking or shortages. This includes implementing real-time tracking systems to ensure that critical supplies are effectively managed and distributed.
3. Supply Chain Risk Assessments
We can conduct comprehensive risk assessments of the current NMS supply chain, identifying vulnerabilities and recommending risk mitigation strategies. These assessments will ensure the NMS is robust and can respond effectively to disruptions.
4. Technology Integration and Implementation
We can help integrate modern supply chain management software and digital platforms into the NMS, enabling real-time visibility, automated workflows, and seamless coordination with suppliers and healthcare facilities.
Next steps
The Australian National Medical Stockpile plays a vital role in the nation’s healthcare infrastructure, but managing it effectively requires modernisation. By adopting advanced supply chain technologies and leveraging global best practices, Australia can ensure its stockpile remains resilient, responsive, and ready for any future health emergency. Trace Consultants is ready to support the federal government in achieving these goals.
Mathew Tolley
Partner
Technology
October 11, 2024
Enhance Emergency Supply Chain Resilience with Advanced Demand Forecasting
Learn how Advanced Demand Forecasting boosts emergency supply chain resilience in Australia, using predictive analytics for proactive risk reduction, rapid response, and resource optimisation.
In the past five years, Australia has confronted a series of natural disasters and health crises, from bushfires to droughts, floods, and COVID-19. Effective responses to such emergencies require rapid and strategic actions to safeguard the community and wildlife, protect homes and businesses, and ensure the continuity of essential services like food, water, power, and communication. Achieving this demands a coordinated effort across federal, state, and local governments, in collaboration with private sector stakeholders.
The National Disaster Risk Reduction Framework, established in 2018, forms the backbone of Australia's strategy to enhance resilience against increasingly frequent and severe natural disasters. Building a resilient response framework is inherently multidisciplinary, necessitating collaboration across logistics, supply chain management, policy, finance, engineering, and more. This article delves into the critical role of forecasting and machine learning in emergency response, emphasising how Advanced Demand Forecasting serves as a foundation for informed decision-making during crises.
Natural Disasters and Emergencies in Australia
Australia has endured several significant natural disasters in recent years. The 2019-2020 Black Summer bushfires scorched over 18 million hectares across multiple states, leading to widespread destruction of homes, wildlife, and agricultural land. Severe flooding in southeastern Queensland and northern New South Wales in early 2022 caused extensive infrastructure damage, while the COVID-19 pandemic created nation-wide challenges, notably shortages of critical medical supplies, and disrupted daily life.
These events have underscored the significant need for increasingly resilient emergency supply chains, capable of responding effectively to unpredictable and rapidly changing demand patterns during crises.
What is Advanced Demand Forecasting?
Advanced Demand Forecasting goes beyond copying historical data, but learns from it, by utilising sophisticated models that incorporate real-time and predictive data sources, such as weather forecasts, demographic trends, and even social media activity. These models employ advanced analytics and machine learning algorithms to provide more accurate and timely predictions, enabling organisations to anticipate future demand for critical resources and services more effectively.
For example, integrating live meteorological data into machine learning models allows government agencies to predict the trajectory, intensity, and impact of natural disasters like storms or bushfires. This predictive capability enables the estimation of necessary quantities of emergency supplies, optimal pre-positioning of resources, and precise timing for deployment. In addition to predictive analysis of the immediate threat, overlaying estimates of populations, infrastructure costs and more also enables impact estimates, including human injuries or displacement, or the cost to rebuild damaged infrastructure, which are used for forward planning at a government level, and prioritising resources at the time of a crisis (1).
Advanced Demand Forecasting and the National Disaster Risk Reduction Framework
The National Disaster Risk Reduction Framework aims to shift the focus from reactive disaster response to proactive risk reduction, emphasising a unified national approach involving all sectors of society (2). It outlines four key national risk priorities:
• Understand disaster risk: Ensure that meaningful risk information is freely shared and integrated into planning;
• Accountable decisions: Making decisions across sectors that either reduce or prevent disaster risk;
• Enhanced investment: Invest in risk reduction to limit the future costs of disasters;
• Governance, ownership and responsibility: Establish clear roles across all sectors and communities for reducing disaster risk.
The importance of this framework is underscored by the significant economic impact of natural disasters, which have cost the Australian economy around $18 billion per year over the past decade, with projections indicating this figure could rise to $39 billion annually by 2050 without effective risk reduction strategies. Advanced Demand Forecasting directly supports these priorities by providing high accuracy data to inform decision-making, budgeting, and resource allocation. By enhancing the understanding of disaster risks through predictive analytics and incorporating impact estimates, organisations can make decisions that prioritise risk reduction and timely recovery.
Practical Implications
Implementing advanced demand forecasting can lead to:
• Improved Responsiveness: Faster identification of emerging needs allows for quicker mobilisation of resources, reducing the time lag between when it is needed, and when it arrives.
• Resource Optimisation: Accurate forecasts help in allocating resources efficiently by optimising stock distribution.
• Enhanced Collaboration: Sharing forecasting data among various stakeholders fosters a unified approach to disaster response, ensuring that efforts are complementary rather than duplicative.
The trace. Resilience and Emergency Response Framework
As a member of the Federal Government’s Management Advisory Services Panel, trace. is uniquely positioned to apply our expertise in Supply and Demand Management and Advanced Forecasting techniques to support the financial and economic analysis behind critical disaster resilience decisions. Our structured response framework aligns with the ISO 22301:2019 International Business Continuity Management Systems (BCMS) standard, ensuring that government agencies can maintain essential services during and after a disaster. The purpose of utilising the BCMS framework is “for organisations to plan, establish, implement, operate, monitor, review, maintain, and continually improve a documented management system to protect against, reduce the likelihood of, and ensure recovery from disruptive incidents (3).”
Our approach includes:
• Risk Identification: Support the Australian Government to identify all potential disasters, such as floods, bushfires, or droughts.
• Impact Analysis and Prioritisation: Analysing the potential impact of these disasters from multiple perspectives—economic, social, environmental—and prioritising the most significant risks based on data-driven insights.
• Continuity Strategies and Planning: Recommending tailored continuity strategies, risk mitigation activities, and response timeframes to ensure effective disaster recovery.
How Trace Consultants Can Assist Government Agencies
As part of the Management Advisory Services Panel, trace. can now assist Australian Government Entities with the following services:
• Benchmarking, economic, econometric, mathematical and financial modelling and analysis
• Competition and market analysis
• Economic advice
• Regulatory and policy analysis
• Data analysis
• Business cases and cost benefit analysis
• Supply and demand management and forecasting
Benefits of Our Approach
By engaging trace. to assist with Supply and Demand Management and Forecasting, government agencies can achieve:
• Improved Responsiveness: Faster identification of emerging needs allows for quicker mobilisation of resources, reducing the time lag between when it is needed, and when it arrives.
• Cost Savings: Efficient resource allocation reduces unnecessary expenditures on surplus supplies and minimises losses due to shortages.
• Data-Driven Decision Making: Leveraging robust data analytics supports transparent and accountable decisions, aligning with national priorities for disaster risk reduction.
Next steps
The increasing frequency and severity of natural disasters necessitate a proactive and data-driven approach to emergency management. Advanced Demand Forecasting offers a powerful tool for enhancing the resilience of emergency supply chains. This capability is crucial for safeguarding communities, reducing economic losses, and ensuring the continuity of essential services.
At trace., we are committed to helping government agencies adopt advanced Supply and Demand Management and Forecasting capabilities. With the right tools and strategic planning, we can collectively mitigate the economic and societal impact of future disasters.
If your organisation is seeking to strengthen its preparedness and response capabilities, contact trace. today.
Abby Hodgkiss
Consultant
References
1: Merz, B. et al (2020). Impact Forecasting to Support Emergency Management of Natural Hazards. Reviews of Geophysics, 58(4). Available at: https://doi.org/10.1029/2020rg000704.
2: Department of Home Affairs (2018). National Disaster Risk Reduction Framework Department of Home Affairs. Available at: https://www.homeaffairs.gov.au/emergency/files/national-disaster-risk-reduction-framework.pdf.
3: ISO The International Organization of Standardization (2019). ISO 22301:2019 Security and resilience — Business continuity management systems — Requirements. ISO. Available at: https://www.iso.org/standard/75106.html.
As Australian businesses are impacted by a slowing economy and high inflation, it is vital for organisations to ensure the procurement function is focused on the key strategic challenges for the organisation and continuing to innovate the way it operates and delivers value for the business. Procurement is a key function as it can directly impact:
• Cost Savings: Effective procurement strategies help businesses secure goods and services at the best possible prices. By negotiating favourable terms with suppliers, companies can reduce their overall operational costs, leading to improved profitability.
• Quality Control: Procurement ensures that the business sources high-quality materials and services, which directly affects the quality of the final product or service. Reliable procurement processes involve rigorous evaluation of suppliers to maintain consistent quality standards.
• Risk Management: A well-structured procurement process helps identify and mitigate risks in the supply chain, such as supplier reliability, compliance with regulations, and geopolitical risks. By diversifying suppliers and building strong relationships, businesses can safeguard themselves against potential disruptions.
• Supply Chain Efficiency: Efficient procurement optimises the supply chain by ensuring timely delivery of goods and services. It involves planning and forecasting demand accurately to avoid stockouts or overstock situations, thereby streamlining operations.
• Compliance and Sustainability: Procurement plays a key role in ensuring compliance with legal and regulatory requirements. It can also drive sustainability by selecting suppliers that adhere to ethical practices and environmental standards, aligning with corporate social responsibility (CSR) goals.
Given the growing emphasis on organisations to respond to each of these business needs trace. has developed a comprehensive Procurement Excellence Framework spanning the entire procurement journey.
1. Strategic Procurement
Increasingly, procurement is at the forefront of strategy. With economic and political events fundamentally changing supply chains, organisations must consider the impacts of procuring goods and services – navigating service, profitability, and risk.
Trace. can help executives answer these key questions to help review their procurement strategy:
1. What are the organisation's overall goals and objectives?
• How does procurement align with and support the company’s strategic goals?
• What specific outcomes is procurement expected to achieve, such as cost savings, quality improvement, or innovation?
2. What is our current spend and procurement process?
• What is the total spend across different categories, and how is this spend managed?
• Are there any inefficiencies or areas of excessive cost within the current procurement process?
• Are there changes in the business that could impact the level of activity being procured (e.g. if business volume has declined can some activities be delayed / rescheduled?)?
3. Who are our key suppliers, and what is our supplier management strategy?
• Who are the critical suppliers, and what are their strengths and weaknesses?
• How do we manage supplier relationships to ensure quality, reliability, and strategic partnerships?
4. How can we mitigate risks in the supply chain?
• What potential risks exist in the supply chain, such as supply disruptions, geopolitical issues, or compliance risks?
• What risk mitigation strategies can we implement, such as supplier diversification or contingency planning?
5. How can we optimise our sourcing strategy?
• What sourcing strategies can we employ to reduce costs and enhance value (e.g., global sourcing, single vs. multiple sourcing)?
• How can we leverage competitive bidding, negotiations, and strategic partnerships to get the best value?
6. What role does sustainability and ethics play in our procurement strategy?
• How can procurement support the organisation’s sustainability and corporate social responsibility (CSR) goals?
• Are our suppliers compliant with ethical standards, environmental regulations, and fair labour practices?
7. How do we ensure quality and compliance in our procurement activities?
• What measures are in place to ensure that procured goods and services meet the required quality standards?
• How do we ensure compliance with relevant laws, regulations, and internal policies?
8. How can we leverage technology and data in procurement?
• What procurement technologies can enhance our procurement processes (e.g., e-procurement platforms, spend analytics)?
• How can data analytics be used to gain insights into spending patterns, supplier performance, and market trends?
9. How do we measure procurement performance?
• What key performance indicators (KPIs) should be used to measure the success of procurement activities (e.g., cost savings, procurement cycle time, supplier performance)?
• How do we track and report on procurement’s contribution to the organisation’s strategic objectives?
10. How can we foster innovation through procurement?
• How can we collaborate with suppliers to drive innovation and improve products or services?
• Are there opportunities to explore new markets, materials, or technologies through strategic supplier partnerships?
11. What is our long-term procurement strategy?
• How will our procurement strategy evolve to meet future business needs and market changes?
• What are our plans for developing and upskilling the procurement team to support strategic goals?
2. Sustainable Procurement
Sustainability is a key consideration for organisations – and Procurement functions can play a significant role by shaping how organisations operationalise sustainability across its supply chain. Sustainable Procurement describes how the process of sourcing goods and services can achieve positive environmental, social, and economic impacts.
Five key considerations for sustainable procurement opportunities:
Environmental
1. Product Design: Are you choosing products and services that are energy-efficient? Are you choosing products that are made from recycled materials, or have minimal packaging?
2. Emissions: Are you considering suppliers emissions as part of measuring your own Scope 3 emissions?
Social
3. Suppliers: Do you have an appropriate supplier due diligence and risk assessment process in place to know the level of risk within your supply chain? Do you have a Modern Slavery Statement?
Governance
4. Total Cost of Ownership: Are you considering the total cost of ownership to ensure cost-effective purchasing decisions?
5. KPIs & Accountability: Do you have appropriate KPI and Performance Reporting to manage suppliers' sustainability?
How Trace Consultants Can Help:
We can help your organisation assess the effectiveness of current sustainable procurement practices and support the design and development of a pragmatic strategy and roadmap to drive improvement in targeted areas.
3. Category Management
Category Management involves dividing products and services into discrete groups or categories. This allows organisations to focus on specific segments of their procurement spend, tailoring strategies to the unique characteristics and market conditions.
At trace. we take a three-step approach to help review your category management:
1. Category Analysis - When is the last time you reviewed your Categories?
a. Identify cost savings potential (rate reviews & benchmarking)
b. Identify areas of concentrated spend
c. Scenario modelling of current trends, competitor positions & options
d. Evaluate risks with existing suppliers and emerging market trends
2. Strategic Alignment - How aligned are your category strategies to the business’ current needs
a. Supplier strategy – e.g. balance strategic relationships & competition
b. Evaluating a category management fit with broader strategic vision and goals
c. Review gaps across procurement processes and strategic objectives
3. Category Execution - What opportunities exist to implement changes across categories?
a. Executing category strategies through sourcing and procurement practices.
b. Ensuring compliance with procurement policies and procedures.
c. Monitoring performance and adjusting strategies as needed
Example Categories for an Automotive Manufacturer
Direct Materials
• Raw Materials: Steel, aluminium, plastics, rubber.
• IT and Telecommunications: Software, hardware, etc.
• Professional Services: Consulting, legal, marketing.
How Trace Consultants Can Help:
For businesses looking to review their category management, Trace Consultants can help review category opportunities, identify cost-savings, drive standards and consistency, and align strategy and procurement.
4. Cost Reduction & Spend Analytics
Cost Reduction and Spend Analytics involves analysing spend data to identify variances and anomalies. This allows the organisations to benchmark, identify savings opportunities and improve supplier performance.
At trace. we address these key questions to help review your spend and reduce costs:
1. Benchmarking Analysis - When is the last time you monitored your current spend against market data?
a. Leverage tools to find spending anomalies
b. Compare current spend against historical data, group spend and industry standards
c. Track budget deviations and investigate root causes using AI & machine learning
2. Scope & Rate Review - How often are scopes and rates reviewed to align to the business’ strategy?
a. Identifying services to scale down or eliminate
b. Supplier management - Renegotiating terms with suppliers for better rates & service
c. Market analysis – leverage scale via benchmarking and leveraging bulk purchasing
3. Contract & KPI Review - What opportunities exist to manage variances and reduce costs?
a. Auditing supplier performance to meet compliance requirements
b. Implementing three-way matching to verify invoices – order, received, invoiced.
c. Use automated technology to reduce errors
How Trace Consultants Can Help:
For businesses looking to reduce costs and analyse their spend, Trace Consultants can help identify cost-saving opportunities, detect spending anomalies and variances, optimise service scope and pricing, and address variances and invoicing errors.
5. Procure to Pay Optimisation
Procure-to-Pay (P2P) is the process that covers all steps from requisitioning goods and services to paying suppliers, ensuring streamlined purchasing and financial operations within an organisation.
At trace. we take a three-step approach to answer key questions that can help optimise your P2P process:
1. How mature is your P2P process?
a. Review the efficiency and maturity of the existing P2P process
b. Compare current process against industry standards
c. Evaluate risks associated the existing process
2. Have contract scope and rates been reviewed for market competitiveness?
a. Review goods or services being procured against specifications
b. Review scope of work against contractual agreements incl changes or additions
c. Review rates charged match agreed-upon rates and validate for market competitiveness
3. What opportunities exist to optimise your P2P process?
a. Identifying key requirements for a technology solution that aligns with business needs
b. Developing a business case to outline benefits of an integrated P2P solution
c. Implementing an integrated P2P solution
How Trace Consultants Can Help:
For businesses looking to optimise their procure-to-pay process, Trace Consultants can help conduct a maturity assessment and gap analysis, identify opportunities for optimisation and uplift processes, and conduct a strategic alignment and operating model review.
6. Contract Performance and KPI Management
A well-defined and well-understood scope of works prevents the risk of service delivery not meeting requirements or intended quality as well as change requests that can negatively impact costs, operational efficiencies & customer experience. Before KPIs are considered, base scopes must be well defined.
How Trace Consultants Can Help:
For businesses looking to improve their Contract Performance and KPI Management, Trace Consultants can help realign and control the scope of work, manage changes in scope, govern contract health and performance, and develop performance metrics and scorecards.
7. Supplier Relationship Management
Supplier collaboration can help drive effective procurement by fostering transparency, innovation, and shared goals, leading to improved cost efficiencies, quality, and supply chain resilience.
There are four key components of an effective Supplier Relationship Management process:
1. Who are your strategic suppliers?
• Identify key strategic relationships to engage in SRM
• Allocate resources effectively
2. Do you have effective SRM Governance?
• Internal governance processes
• Clear ownership of supplier relationships
• Oversight of supplier management and strategic decision making
3. How well are suppliers performing?
• Define and establish key performance indicators (KPIs)
• Develop scorecards to track and review supplier performance
4. Where can a partnership add value?
• Collaborative initiatives for value creation with chosen strategic suppliers
• Operational performance (time-slots, store ready deliveries, labelling, MHE, etc.)
Effective Supplier Collaboration should drive accountability, be forward looking and consider both service & operational performance.
How Trace Consultants Can Help:
For businesses looking to review their Supplier Relationship Management, Trace Consultants can help define supplier segmentation and strategy, establish performance metrics and scorecards, conduct contract review and optimisation, and develop effective renegotiation strategy.
Interested to learn how Trace Consultants can support your organisation's procurement journey? Contact your local trace. team today.
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