Network Optimisation – DC and Warehousing: How Many, How Big and Where

For many Australian and New Zealand organisations, the distribution centre and warehousing network has evolved over time rather than being deliberately designed. New sites are added as the business grows. Temporary solutions become permanent. Leases roll over. Service issues are patched rather than solved. Before long, the network becomes complex, expensive, and increasingly misaligned with customer expectations.

Network optimisation is the discipline of stepping back and asking some deceptively simple questions:

• How many distribution centres or warehouses do we actually need?
• How big should each facility be – today and in the future?
• Where should they be located to balance cost, service, risk and growth?

When done properly, network optimisation can unlock step-change improvements in operating cost, service performance, working capital, resilience and sustainability. When done poorly – or with the wrong incentives – it can lock organisations into expensive, inflexible decisions that are very difficult to unwind.

This article explores how organisations should think about DC and warehousing network optimisation, the common traps to avoid, and why independent, solution-agnostic advice is critical to getting it right.

Why network optimisation matters more than ever

Supply chains across Australia and New Zealand are operating in a fundamentally different environment than they were even five years ago.

Customer expectations around speed, reliability and visibility continue to rise. E-commerce and omnichannel fulfilment have shifted order profiles and delivery patterns. Labour availability and cost pressures are persistent. Transport markets are volatile. And boards and executives are paying closer attention to resilience, risk exposure and sustainability.

At the same time, DCs and warehouses represent some of the largest and least flexible cost commitments in the supply chain:

• Long-term property leases or owned assets
• Fixed labour and overhead structures
• Embedded technology and automation decisions
• Transport and inventory dependencies that cascade across the network

Once a network decision is made, it often shapes the business for a decade or more. That makes getting the fundamentals right – how many, how big and where – critically important.

The three core questions of network optimisation

1. How many DCs or warehouses do we need?

There is no “right” number of DCs. The optimal answer depends on the trade-off an organisation is willing to make between cost, service and risk.

At one end of the spectrum, a highly centralised network can deliver scale efficiencies, simpler inventory management and lower fixed costs. At the other end, a highly decentralised network can reduce transport lead times, improve service responsiveness and enhance resilience.

Key factors that influence the optimal number of facilities include:

• Customer service expectations – delivery speed, cut-off times, order frequency
• Product characteristics – size, weight, value, shelf life, handling complexity
• Demand patterns – geographic dispersion, variability, seasonality
• Transport economics – linehaul versus last-mile cost trade-offs
• Inventory strategy – safety stock policies and service level targets
• Risk tolerance – exposure to single-site disruptions

A common mistake is assuming that “more DCs equals better service” or that “fewer DCs equals lower cost”. In reality, both extremes can be sub-optimal if not supported by data and a clear operating model.

Network optimisation provides a structured way to test different scenarios and understand the real cost-to-serve and service implications of each option.

2. How big should each facility be?

Warehouse size decisions are often driven by what is available in the property market or what feels “safe” for growth. This can result in facilities that are either constrained from day one or materially oversized for years.

Sizing a DC correctly requires a deep understanding of:

• Current and future volume profiles (units, pallets, cartons, orders)
• Peak versus average demand and how peaks are managed
• Storage and handling requirements by product category
• Operating model assumptions – shifts, labour productivity, automation levels
• Inventory policies – days of cover, decoupling stock, buffer strategies
• Growth scenarios – organic growth, range expansion, channel shifts

Oversized facilities lock in unnecessary capital and operating costs. Undersized facilities drive congestion, inefficiency, safety risks and costly short-term workarounds.

Effective network optimisation links facility sizing directly to demand forecasts, inventory strategies and operational assumptions – not just high-level growth percentages.

3. Where should facilities be located?

Location decisions are among the most sensitive and visible outcomes of a network optimisation exercise.

In Australia and New Zealand, geography plays a particularly important role. Long distances, population concentration in major cities, regional service requirements, and limited labour pools all shape the optimal answer.

Key considerations include:

• Proximity to customers and service time commitments
• Access to transport infrastructure – road, port, intermodal
• Labour availability and cost
• Property market dynamics – availability, lease structures, escalation risk
• Exposure to risk – natural hazards, congestion, single-point failures
• Alignment with upstream suppliers or downstream partners

Location optimisation is not about picking a suburb on a map. It is about understanding how location interacts with transport cost, service performance, workforce sustainability and long-term flexibility.

Beyond cost: what good network optimisation really delivers

While cost reduction is often the initial trigger for a network review, the most successful programs deliver value across multiple dimensions.

Improved service performance

Well-designed networks reduce lead times, improve DIFOT performance and create more predictable service outcomes. This is increasingly important as customers expect tighter delivery windows and greater transparency.

Lower working capital

Network structure has a direct impact on inventory duplication and safety stock requirements. Optimisation can materially reduce working capital without compromising service when inventory is positioned deliberately rather than organically.

Greater resilience

Events over recent years have highlighted the fragility of overly centralised or poorly designed networks. Network optimisation allows organisations to test disruption scenarios and design in resilience where it matters most.

Better labour sustainability

Facility location and size decisions influence access to labour, turnover, productivity and safety outcomes. A network that looks efficient on paper but cannot be staffed reliably will struggle in practice.

Clearer investment decisions

Network optimisation provides a fact base for decisions on property, automation, systems and outsourcing. It ensures that downstream investments are aligned to a future-ready network design rather than locking in today’s constraints.

Common traps in DC and warehousing network decisions

Despite the strategic importance of network optimisation, many organisations fall into avoidable traps.

Letting property availability drive the answer

Choosing locations or sizes based primarily on what is available in the market often leads to compromised outcomes. Property constraints should be tested against the optimal network – not the other way around.

Optimising in isolation

Network decisions are sometimes made without fully considering inventory strategy, transport design, labour models or systems capability. This leads to local optimisation that underperforms end-to-end.

Over-reliance on rules of thumb

Heuristics such as “one DC per state” or “X square metres per pallet” can be useful starting points, but they are not substitutes for data-driven modelling.

Designing for today only

Networks designed around current volumes and channels can quickly become obsolete. Scenario testing and future-state thinking are essential.

Taking advice with embedded incentives

Perhaps the most significant trap is relying on advice from parties whose commercial interests are linked to a particular outcome – whether that is property development, automation deployment or technology selection.

Why independent, solution-agnostic advice matters

Network optimisation decisions shape millions – and often billions – of dollars of future cost and investment. The stakes are too high for advice that is not truly independent.

Independent, solution-agnostic advice means:

• No incentive to recommend more buildings than necessary
• No incentive to oversize facilities to sell automation or technology
• No incentive to bias location decisions towards specific property assets

Instead, decisions are driven by what is genuinely optimal for the organisation’s strategy, service promise and risk profile.

For executives and boards, this independence is critical. It provides confidence that recommendations are grounded in evidence, not sales targets or asset pipelines.

The role of data and modelling in network optimisation

Modern network optimisation goes well beyond simple spreadsheets. Effective analysis typically combines:

• Demand and volume forecasting by region and channel
• Cost-to-serve analysis across transport, warehousing and inventory
• Scenario modelling across different network configurations
• Sensitivity testing for growth, service and disruption scenarios

Importantly, the outputs of modelling should not be treated as a black box. The value lies in understanding the trade-offs and assumptions behind each scenario, not just the “optimal” answer.

Good network optimisation balances analytical rigour with practical operational insight.

Network optimisation is not a one-off exercise

One of the biggest misconceptions is that network optimisation is something you do once every ten years.

In reality, leading organisations treat it as a repeatable strategic capability, revisited as conditions change:

• Growth or contraction
• Channel shifts
• Changes in service strategy
• Cost pressure or margin erosion
• Mergers, acquisitions or divestments

Regularly revisiting network assumptions allows organisations to make proactive decisions rather than reacting under pressure.

How Trace Consultants can help

Trace Consultants supports Australian and New Zealand organisations to design DC and warehousing networks that are fit for purpose today and resilient for the future.

Our approach to network optimisation is grounded in a few core principles.

Independent and solution-agnostic

Trace is not linked to property developers, automation vendors or technology providers. This allows us to provide genuinely independent advice, focused solely on what is best for your organisation.

End-to-end perspective

We design networks in the context of the broader supply chain – integrating demand planning, inventory strategy, transport design, workforce considerations and systems capability.

Practical and implementable

Our recommendations are grounded in operational reality. We focus on designs that can actually be staffed, operated and scaled in the Australian and New Zealand context.

Scenario-led decision making

Rather than presenting a single “answer”, we help executives understand the trade-offs between different network options and make informed decisions aligned to strategy and risk appetite.

Support beyond the model

Trace supports clients from initial network strategy through to business case development, stakeholder engagement and implementation planning – ensuring that network decisions translate into real outcomes.

When should organisations consider network optimisation?

While every organisation’s context is different, common triggers include:

• Rising warehousing or transport costs
• Declining service performance
• Capacity constraints or congestion
• Major lease expiries or property decisions
• Growth into new regions or channels
• Mergers or organisational restructuring
• Increased focus on resilience and risk

If these signals are present, it is often a sign that the network has drifted away from what the business actually needs.

Final thoughts: getting the fundamentals right

“How many, how big and where” may sound simple, but these questions sit at the heart of supply chain performance.

Network optimisation is not about chasing theoretical efficiency. It is about deliberately designing a DC and warehousing network that supports your strategy, your customers and your people – now and into the future.

For Australian and New Zealand organisations facing ongoing cost pressure, service expectations and uncertainty, there are few levers with more impact than getting the network right.

Independent, solution-agnostic network optimisation provides the clarity needed to make confident, long-term decisions – and avoid locking in tomorrow’s problems.

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Supply Chain and Procurement Due Diligence Pre-Acquisition

Why operational insight matters before the deal is done

Mergers and acquisitions are won or lost long before contracts are signed. While financial, legal, and tax due diligence remain essential, experienced investors increasingly recognise that operational realities—particularly within supply chain and procurement—can materially alter deal value.

In Australia and New Zealand, where businesses often operate with complex logistics networks, long supplier relationships, geographic dispersion, and labour-intensive operations, supply chain and procurement due diligence has become a critical pre-acquisition discipline.

This article explores:

• Why supply chain and procurement due diligence matters
• What good looks like in a pre-acquisition context
• Common risks and value traps
• Where upside is often hidden
• How insights should shape valuation, deal structure, and post-acquisition priorities
• How Trace Consultants supports investors, private equity firms, and corporates through this process

Why supply chain and procurement due diligence matters more than ever

In theory, supply chain and procurement should be predictable contributors to earnings. In practice, they are often the largest controllable cost base and one of the least transparent parts of the business during a transaction.

For many organisations:

• Procurement spend can represent 40–70% of total operating costs
• Logistics, warehousing, and inventory materially impact working capital
• Supplier dependency creates hidden risk
• Service failures directly affect revenue, customer satisfaction, and brand

Yet supply chain performance is frequently assessed through high-level financial snapshots, rather than an understanding of how the operation actually works.

Pre-acquisition due diligence provides an opportunity to:

• Validate whether reported margins are sustainable
• Identify risks not visible in financial statements
• Understand execution capability post-deal
• Quantify realistic cost-out and improvement opportunities
• Avoid overpaying for “paper synergies”

Supply chain and procurement due diligence vs traditional operational reviews

It is important to distinguish transaction-focused due diligence from broader operational diagnostics.

Pre-acquisition supply chain and procurement due diligence is:

• Time-bound and hypothesis-driven
• Focused on value protection and value creation
• Designed to inform investment decisions, not just improvement roadmaps
• Grounded in what is achievable, not theoretical best practice

The objective is not to design the future operating model in detail, but to answer critical investor questions such as:

• Are costs sustainable?
• Where are the risks?
• What upside is real?
• How difficult will change be?

Core objectives of supply chain and procurement due diligence

1. Validate the true cost base

Headline procurement savings are often overstated. Due diligence tests:

• Whether current pricing reflects competitive market rates
• If rebates, incentives, or volume discounts are at risk post-transaction
• Whether cost allocations are accurate
• The impact of inflation pass-through clauses

This ensures the acquisition model reflects real, defendable costs, not optimistic assumptions.

2. Identify supply chain risk exposure

Supply chains fail quietly—until they don’t.

Key risks assessed include:

• Over-reliance on single suppliers or routes to market
• Contractual weaknesses
• Capacity constraints
• Labour availability and industrial exposure
• Technology obsolescence
• Safety, compliance, and regulatory risk

In Australia and New Zealand, geographic isolation, freight volatility, and workforce constraints amplify these risks.

3. Understand working capital dynamics

Inventory is one of the most misunderstood levers in a transaction.

Due diligence examines:

• Inventory quality, ageing, and obsolescence risk
• Forecast accuracy and demand volatility
• Safety stock logic (or lack thereof)
• Supplier lead time reliability
• The realism of inventory reduction assumptions

Poor inventory visibility often leads to post-deal cash surprises.

4. Test operational scalability

Many acquisition theses rely on growth.

Supply chain due diligence assesses:

• Whether existing networks can scale without disproportionate cost
• Warehouse and transport capacity constraints
• Supplier readiness to support growth
• The maturity of planning processes

Growth without supply chain readiness can destroy value quickly.

5. Assess execution capability

Savings only matter if they can be delivered.

This includes evaluating:

• Procurement maturity and capability
• Governance, decision rights, and accountability
• Data quality and systems
• Change readiness of the organisation

A business with theoretical opportunity but low execution capability presents a very different risk profile.

What is typically in scope for supply chain and procurement due diligence?

While scope varies by sector and transaction, it typically includes:

Procurement

• Spend analysis and categorisation
• Supplier concentration and dependency
• Contract coverage and commercial terms
• Price benchmarking and market testing
• Sourcing strategies and compliance
• Procurement operating model and capability

Supply Chain Planning

• Demand forecasting maturity
• Sales and operations planning (or equivalent)
• Planning data integrity
• Responsiveness to demand variability

Inventory Management

• Inventory segmentation and policies
• Obsolescence and slow-moving stock
• Service level alignment
• Working capital drivers

Warehousing and Logistics

• Network design and footprint
• Warehouse productivity and cost drivers
• Transport strategy and rate structures
• Third-party logistics arrangements

Technology and Data

• ERP and planning system capability
• Manual workarounds and spreadsheets
• Data visibility and reporting maturity
• Technology constraints to change

Common red flags uncovered during due diligence

Across transactions, several recurring issues emerge.

Over-dependence on key suppliers

Often masked by long-standing relationships, this risk becomes visible when:

• Contracts are informal or expired
• Pricing is not market-tested
• Knowledge sits with individuals
• Supplier terms change post-acquisition

Unrealistic procurement savings assumptions

Savings models frequently assume:

• Immediate renegotiation success
• No service or quality trade-offs
• Unlimited internal capacity
• Minimal supplier resistance

Due diligence helps distinguish aspirational targets from achievable outcomes.

Inventory bloat disguised as service protection

Excess inventory is often justified as “required for service”.

Closer examination reveals:

• Poor forecast accuracy
• Inconsistent replenishment logic
• Lack of segmentation
• Reactive planning behaviours

This ties up cash and hides systemic issues.

Logistics networks shaped by history, not strategy

Many networks evolve incrementally.

Due diligence identifies:

• Sub-optimal warehouse locations
• Inefficient transport routing
• Underutilised assets
• Contracts misaligned with current volumes

These issues often represent significant medium-term upside, but not always immediate savings.

Limited visibility and reliance on manual processes

Spreadsheets can run a business—until scale or complexity increases.

Risks include:

• Key person dependency
• Data errors
• Slow decision-making
• Inability to respond to disruption

Technology limitations materially affect post-deal execution.

Where value is typically found pre-acquisition

Supply chain and procurement due diligence does more than highlight risk—it identifies opportunity.

Common value levers include:

Procurement scope and demand rationalisation

Before negotiating price:

• Specifications are often inconsistent
• Demand is fragmented
• Services are over-scoped

Rationalisation can unlock savings without supplier conflict.

Supplier strategy reset

Opportunities often exist to:

• Consolidate fragmented spend
• Rebalance supplier portfolios
• Introduce competition where absent
• Improve commercial terms over time

This requires realism about timing and internal capability.

Inventory optimisation

Reducing inventory while maintaining service involves:

• Better segmentation
• Improved planning discipline
• Lead time reduction
• Policy redesign

These are achievable but rarely instant.

Network and logistics optimisation

Changes may include:

• Network redesign
• Contract restructuring
• Mode shifts
• Productivity improvements

These are often staged post-acquisition initiatives.

Using due diligence insights to shape the deal

The best investors use supply chain and procurement insights to actively shape transactions.

This may influence:

• Purchase price adjustments
• Earn-out structures
• Day 1 priorities
• Capital allocation
• Integration sequencing

Rather than treating due diligence as a gate, it becomes a value creation blueprint.

Sector considerations in Australia and New Zealand

Industrial and manufacturing

• Exposure to imported inputs
• Energy and freight volatility
• Long supplier lead times
• Capital-intensive networks

Retail and FMCG

• Demand variability
• Inventory risk
• Supplier power concentration
• Network scalability

Healthcare and aged care

• Regulatory constraints
• Critical supply assurance
• Workforce dependency
• Service sensitivity

Infrastructure and services

• Long-term contracts
• Asset maintenance exposure
• Labour availability
• Geographic dispersion

Each sector requires tailored diligence lenses.

How Trace Consultants can help

Trace Consultants supports investors, private equity firms, and corporates with independent, practical supply chain and procurement due diligence.

Our approach is designed specifically for pre-acquisition decision-making, not generic operational reviews.

What makes Trace different

• Deep supply chain and procurement specialists, not generalists
• Experience across Australian and New Zealand operating environments
• Commercially grounded insights that investors can act on
• Focus on achievable value, not theoretical benchmarks
• Clear articulation of risk, effort, and timing

How we support pre-acquisition due diligence

Trace typically supports transactions through:

• Rapid procurement spend and contract analysis
• Supply chain risk and resilience assessment
• Inventory and working capital diagnostics
• Logistics and network cost evaluation
• Validation of synergy and cost-out assumptions
• Post-deal value creation roadmap development

Our work is structured to integrate seamlessly with financial, legal, and commercial due diligence streams.

Supporting confidence in investment decisions

Whether supporting:

• Private equity acquisitions
• Corporate M&A
• Infrastructure investments
• Carve-outs and divestments

Trace helps decision-makers understand what they are really buying—and what it will take to improve it.

Final thoughts: due diligence is not about finding perfection

No supply chain is perfect. That is not the point.

Effective supply chain and procurement due diligence:

• Identifies what matters
• Separates risk from noise
• Distinguishes aspiration from reality
• Enables informed decision-making

In a market where operational performance increasingly defines enterprise value, ignoring supply chain and procurement due diligence is no longer an option.

For investors and acquirers operating in Australia and New Zealand, it is one of the most powerful tools available to protect downside and unlock upside—before the deal is done.

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Supply Chain Resilience in Uncertain Geopolitical Times: A Macro Perspective

For much of the last thirty years, global supply chains were built on a relatively stable foundation. Trade liberalisation expanded, shipping lanes were reliable, supplier relationships deepened, and efficiency was rewarded. Organisations optimised for cost, speed and scale, often assuming that geopolitical stability was a given.

That foundation has shifted. Today, geopolitical uncertainty is no longer a background risk — it is a structural feature of the global operating environment. Trade fragmentation, industrial policy, maritime security risks, energy transition pressures and defence priorities are reshaping how supply chains function. For Australian organisations, these changes carry particular weight.

Australia is geographically distant from many production centres, heavily reliant on maritime freight, and deeply integrated into global markets for energy, industrial inputs and consumer goods. That combination creates opportunity in stable times and heightened exposure when global systems are disrupted.

This article takes a macro perspective on supply chain resilience in uncertain geopolitical times. It explores what has changed, why it matters for Australian organisations, and how resilience can be built in a way that is practical, measurable and economically sound. It also outlines how Trace Consultants can help organisations strengthen resilience without overreacting or embedding unnecessary cost.

The Structural Shift in Global Supply Chains

The most important thing to understand about the current environment is that it is not driven by a single crisis. It is the result of a broader structural shift in how nations think about trade, security and economic sovereignty.

Global supply chains are increasingly shaped by:

• Strategic competition between major economies
• Greater use of tariffs, export controls and trade restrictions
• Policies aimed at securing domestic industrial capability
• Heightened scrutiny of technology, data and critical inputs
• A reassessment of concentration risk and single-point dependencies

This does not mean global trade is ending. It means that supply chains must now operate in a world where policy settings, access rules and political relationships can change quickly and with limited notice.

For Australian organisations, this creates a new operating reality: resilience is no longer optional, and efficiency can no longer be pursued without reference to risk.

Maritime Dependence and Chokepoint Risk

Australia’s reliance on maritime freight is one of the most significant structural features of its supply chains. When shipping routes are disrupted, the impact is felt quickly through longer lead times, higher variability, and reduced planning confidence.

Geopolitical tension has increased the risk profile of several global shipping corridors. When vessels are forced to reroute, the effect is not simply higher freight rates. Transit times lengthen, schedules become unreliable, and downstream planning assumptions break.

For Australian supply chains, this matters because:

• Long lead times amplify the impact of disruption
• Safety stock requirements increase when variability rises
• Service commitments become harder to maintain
• Cash is tied up for longer periods in in-transit inventory

From a resilience perspective, the question is not whether shipping risk exists — it is how quickly an organisation can adapt when conditions change.

Critical Minerals, Energy Transition and Strategic Inputs

Another macro force shaping supply chain resilience is the global competition for critical minerals and energy transition inputs. These materials underpin renewable energy, electrification, advanced manufacturing and defence systems.

Australia plays a central role as a producer of many of these resources, but resilience challenges remain:

• Global competition for supply drives volatility
• Processing and manufacturing capacity is often offshore
• Policy intervention can distort commercial supply signals
• Infrastructure, workforce and permitting constraints affect scalability

For organisations that rely on these inputs — directly or indirectly — resilience requires more than secure contracts. It requires an understanding of where dependencies sit, how substitution can occur, and how supply chain decisions interact with national policy settings.

Defence and Industrial Policy as Supply Chain Drivers

Defence and industrial policy are increasingly influencing supply chain priorities, even outside defence-specific sectors. Governments are placing greater emphasis on sovereign capability, domestic manufacturing, and trusted supplier networks.

This has flow-on effects across the economy:

• Competition for skilled labour intensifies
• Certain inputs and capabilities attract priority demand
• Procurement expectations shift towards resilience and assurance
• Infrastructure investment becomes more targeted and strategic

For Australian organisations, this means supply chain planning must increasingly account for policy direction as well as market forces.

Trade Policy Volatility and Compliance Friction

One of the most disruptive — and least predictable — elements of geopolitical uncertainty is trade policy volatility. Changes to tariffs, export controls, compliance requirements or customs processes can alter supply chain economics almost overnight.

These changes often result in:

• Sudden cost increases that are difficult to pass on
• Forced supplier or country changes
• Longer border clearance times
• Increased administrative burden and documentation
• Delays to technology deployment or component sourcing

Resilient supply chains are not those that predict every policy change, but those that can absorb and respond to change faster than competitors.

Redefining Supply Chain Resilience

In many organisations, “resilience” is interpreted too narrowly. It is often equated with holding more inventory or reshoring production. While these may be appropriate in some cases, they are blunt tools that can create significant cost without proportional benefit.

True supply chain resilience is about capability, not excess.

Resilience is:

• Visibility into dependencies and constraints
• Optionality in sourcing, logistics and production
• Adaptability in planning and execution
• Governance that supports fast, aligned decision-making
• Operational readiness to execute change under pressure

Resilience is not about eliminating risk. It is about managing risk deliberately and economically.

A Practical Macro Framework for Australian Supply Chain Resilience

1. Understand Exposure Beyond Tier One

Many organisations focus on direct suppliers but lack visibility beyond them. True exposure often sits at tier two or three, where single-source components, specialised tooling or country concentration exist.

Resilience efforts should prioritise:

• High-revenue or high-criticality products
• Long lead time inputs
• Limited substitution options
• Concentrated country or corridor dependencies

Perfect visibility is unrealistic. Targeted visibility is essential.

2. Segment Products and Customers by Criticality

Not all products or customers require the same level of protection. Resilience decisions should reflect service criticality, contractual obligations and reputational risk.

Clear segmentation prevents over-investment and ensures resilience resources are focused where they matter most.

3. Build Real Optionality

Optionality is only valuable if it can be activated quickly. This may include:

• Pre-qualified alternate suppliers
• Approved substitute materials or specifications
• Alternative ports, routes or logistics partners
• Flexible contract structures
• Contingency production or packaging options

Options that exist only on paper do not provide resilience.

4. Use Inventory Strategically

Inventory remains one of the most powerful resilience levers — but only when used precisely. Blanket increases in safety stock often inflate cost without materially improving service.

Effective inventory resilience focuses on:

• Variability, not averages
• Lead time uncertainty
• Network positioning
• Replenishment flexibility

Smarter inventory beats more inventory.

5. Scenario Planning That Drives Action

Scenario planning must go beyond workshops. Effective scenarios are linked to predefined decisions and triggers.

For example:

• What changes if transit time extends by two weeks?
• How is demand allocated if supply is constrained?
• Which customers receive priority under disruption?
• What service commitments are adjusted first?

Scenarios should drive decisions, not just discussion.

6. Strengthen IBP as the Decision Engine

Integrated Business Planning is the mechanism that allows organisations to balance service, cost, working capital and risk under uncertainty.

In volatile environments, IBP becomes the “nervous system” of the supply chain, enabling faster, aligned decisions at an enterprise level.

The Australian Context Cannot Be Ignored

Resilience strategies for Australia must account for:

• Geographic distance from suppliers
• Heavy reliance on sea freight
• Port and landside capacity constraints
• Workforce and skills shortages
• Regulatory and biosecurity requirements
• The economics of regional and remote servicing

Strategies that work in dense continental markets often fail when applied uncritically in Australia.

The Role of Technology

Technology supports resilience when it enables better decisions. It adds value by improving:

• Supply chain visibility
• Planning and scenario modelling
• Exception management
• Performance governance

Technology fails when it is implemented without clear processes, clean data or defined decision rights. Resilience starts with operating model design, not software selection.

How Trace Consultants Can Help

Trace Consultants works with Australian organisations to build supply chain resilience that is practical, defensible and commercially grounded.

Trace can support:

• Mapping supply chain exposure and vulnerabilities
• Designing resilience strategies aligned to business objectives
• Reviewing inventory and network resilience options
• Strengthening Integrated Business Planning for volatility
• Supporting technology and analytics enablement
• Embedding governance and decision-making capability

Trace’s approach is independent and confidentiality-led, focused on building lasting capability rather than one-off recommendations.

A Final Thought

Geopolitical uncertainty is no longer a temporary disruption. It is a defining feature of the operating environment.

For Australian organisations, supply chain resilience is becoming a source of competitive advantage. Those that invest in visibility, optionality and disciplined decision-making will protect service, manage cost and maintain trust when volatility hits.

Resilience is not about doing everything differently. It is about being ready to act — deliberately, quickly and confidently — when the world changes.

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