MRO and Maintenance Supply Chains: How Coal-Fired Energy Faces High Costs Due to Old Assets and Unplanned, Reactive Maintenance in 2025

March 14, 2025

MRO and Maintenance Supply Chains: How Coal-Fired Energy Faces High Costs Due to Old Assets and Unplanned, Reactive Maintenance in 2025

In 2025, Maintenance, Repair, and Operations (MRO) supply chains are a critical concern for Government and Energy Provider companies in Australia and New Zealand (ANZ), especially in the coal-fired energy sector. High operational costs, driven by aging infrastructure and a reliance on unplanned, reactive maintenance, are straining budgets and threatening reliability. At Trace Consultants, we’re committed to helping ANZ energy providers and government bodies optimise their MRO supply chains to reduce costs, improve efficiency, and ensure sustainable energy delivery.

This article delves into the challenges of MRO supply chains in coal-fired energy, focusing on the impact of old assets and unplanned maintenance. We’ll explore strategies to address these issues, tailored for ANZ’s unique energy landscape, and highlight how Trace Consultants can support Government and Energy Providers in transforming their maintenance operations.

Why MRO Supply Chains Matter for Coal-Fired Energy in ANZ in 2025

Coal-fired power stations remain a significant part of ANZ’s energy mix, despite the global shift toward renewables. In Australia, coal generates about 50% of electricity, while in New Zealand, it supports peak demand. However, the age of these assets—many built in the mid-20th century—combined with high levels of unplanned, reactive maintenance, drives up costs and risks outages. For Government bodies overseeing energy policy and providers like AGL or Genesis Energy, an efficient MRO supply chain is essential to manage these challenges.

The ANZ Energy Context

In 2025, ANZ faces rising energy demands, aging infrastructure, and pressure to transition to cleaner energy. Coal-fired plants, with their outdated equipment, are particularly vulnerable to breakdowns, leading to costly reactive repairs and supply chain inefficiencies. Optimising MRO processes can help balance reliability, cost control, and sustainability goals.

Key Challenges in MRO Supply Chains for Coal-Fired Energy

The high costs in coal-fired energy MRO supply chains stem from two major issues: old assets and unplanned, reactive maintenance. Let’s break them down.

1. The Burden of Old Assets: Aging Infrastructure Drives Costs

The Age Factor

Many coal-fired power stations in ANZ, such as Australia’s Liddell Power Station (set to close in 2023 but reflective of the sector’s age profile) or New Zealand’s Huntly Power Station, are decades old. Components like turbines, boilers, and conveyors wear out faster, requiring frequent repairs or replacements.

Cost Implications

  • Higher Repair Costs: Aging parts are expensive to fix or source, often requiring custom fabrication.
  • Downtime Risks: Older assets are prone to unexpected failures, halting production and increasing lost revenue.
  • Obsolescence: Spare parts for legacy equipment are harder to find, driving up procurement costs.
Strategies to Address Old Assets
  • Asset Assessment: Regularly evaluate equipment condition to prioritise maintenance or replacement.
  • Lifecycle Planning: Develop long-term plans to phase out obsolete assets or upgrade critical components.
  • Preventive Maintenance: Shift from reactive to proactive care to extend asset life.
How Trace Consultants Can Help

Trace Consultants will conduct comprehensive asset assessments to identify high-risk components. We’ll design lifecycle plans and implement preventive maintenance strategies, helping you manage old assets efficiently and reduce long-term costs.

2. High Levels of Unplanned, Reactive Maintenance: A Costly Cycle

The Reactive Trap

Unplanned, reactive maintenance—fixing equipment only after it breaks—dominates coal-fired energy operations in ANZ. This approach leads to emergency repairs, rushed spare part orders, and production delays, particularly during peak demand periods.

Cost and Reliability Impacts

  • Emergency Expenses: Reactive fixes often cost more due to overtime labour and expedited shipping.
  • Supply Chain Strain: Sudden demand for parts disrupts MRO supply chains, increasing lead times.
  • Outage Risks: Unexpected downtime threatens energy supply, impacting consumers and regulators.
Strategies to Reduce Reactive Maintenance
  • Predictive Maintenance: Use sensors and data analytics to predict failures before they occur.
  • Inventory Management: Maintain strategic stock of critical spares to avoid delays.
  • Maintenance Scheduling: Plan outages during low-demand periods to minimise disruption.
How Trace Consultants Can Help

Trace Consultants will introduce predictive maintenance systems and optimise your inventory management. We’ll develop scheduling plans tailored to ANZ’s energy demand cycles, reducing reactive maintenance and its associated costs.

Key Strategies for Optimising MRO Supply Chains

To address the challenges of old assets and reactive maintenance, ANZ Government and Energy Providers can adopt these strategies.

1. Transitioning to Predictive Maintenance: Leveraging Technology

The Power of Prediction

Predictive maintenance uses IoT sensors, machine learning, and real-time data to monitor equipment health, predicting failures before they happen. For coal-fired plants, this can track turbine vibrations or boiler pressure, enabling timely interventions.

ANZ Benefits

In ANZ, where coal plants are spread across remote areas (e.g., Queensland’s coal regions), predictive tools reduce travel costs for technicians and minimise downtime, aligning with government reliability goals.

How Trace Consultants Can Help

Trace Consultants will implement predictive maintenance solutions, integrating IoT and analytics into your MRO supply chain. Our expertise ensures your coal-fired assets are monitored effectively, cutting unplanned outages.

2. Optimising Inventory and Procurement: Streamlining Supplies

Inventory Challenges

Coal-fired energy relies on a complex array of spares—valves, bearings, and control systems—often with long lead times. Poor inventory management exacerbates reactive maintenance costs.

Strategies for Improvement

  • Strategic Stocking: Pre-position critical spares near high-risk plants.
  • Vendor Partnerships: Build long-term agreements with reliable suppliers.
  • Demand Forecasting: Use historical data to predict spare part needs.
How Trace Consultants Can Help

Trace Consultants will optimise your inventory strategy, negotiating with vendors and forecasting demand to ensure spares are available when needed. Our approach reduces procurement costs and lead times.

3. Enhancing Supply Chain Visibility: One Source of Truth

The Visibility Gap

Lack of visibility into MRO supply chains—e.g., part locations or order statuses—leads to inefficiencies. Government and energy providers need a unified view to coordinate maintenance across multiple sites.

Strategies for Visibility

  • Integrated Systems: Use ERP or MRO-specific software to track parts and processes.
  • Real-Time Dashboards: Provide managers with live updates on stock and maintenance.
  • Cross-Department Collaboration: Align operations, procurement, and maintenance teams.
How Trace Consultants Can Help

Trace Consultants will implement integrated systems and real-time dashboards for your MRO supply chain. We’ll foster collaboration across departments, ensuring a single source of truth to drive efficiency.

4. Workforce Upskilling: Building Maintenance Capability

The Skills Shortage

ANZ’s energy sector faces a skills gap, with fewer technicians trained to maintain aging coal-fired assets. This reliance on external contractors increases costs and delays.

Strategies for Upskilling

  • Training Programs: Develop in-house skills for predictive maintenance and equipment repair.
  • Knowledge Transfer: Document expertise from retiring workers to train new staff.
  • Certification Support: Partner with technical institutes for ongoing education.
How Trace Consultants Can Help

Trace Consultants will design workforce upskilling programs, focusing on predictive maintenance and equipment management. We’ll support knowledge transfer and certification, building your internal capability.

Broader Impacts and Opportunities in 2025

Optimising MRO supply chains offers more than cost savings—it aligns with broader goals for ANZ’s energy sector.

1. Supporting the Energy Transition

Balancing Coal and Renewables

While coal-fired energy remains vital, ANZ is transitioning to renewables. Optimised MRO can extend the life of coal assets during this shift, allowing time to build renewable capacity without compromising supply.

Opportunities

  • Cost Deferral: Delay expensive plant replacements with better maintenance.
  • Regulatory Compliance: Meet government emission targets with efficient operations.
How Trace Consultants Can Help

Trace Consultants will align your MRO optimisation with the energy transition, designing strategies that defer costs and ensure compliance with ANZ regulations.

2. Improving Reliability and Public Trust

Reliability Matters

Unplanned outages erode public trust in energy providers. A robust MRO supply chain reduces downtime, ensuring stable power for homes and businesses across ANZ.

Opportunities

  • Enhanced Reputation: Consistent supply builds consumer confidence.
  • Government Support: Reliable operations strengthen funding cases for upgrades.
How Trace Consultants Can Help

Trace Consultants will enhance your reliability through MRO optimisation, improving public trust and supporting your case for government backing.

Challenges of Optimising MRO Supply Chains

Optimising MRO supply chains in coal-fired energy comes with hurdles:

1. Budget Constraints

High initial costs for technology or training strain government and provider budgets.

2. Legacy Systems

Old IT infrastructure complicates integration with modern MRO tools.

3. Resistance to Change

Staff may resist shifting from reactive to predictive maintenance.

4. Supply Chain Complexity

Global supply issues for coal plant spares add procurement risks.

These challenges are manageable with strategic planning.

Opportunities with Optimised MRO Supply Chains in 2025

An optimised MRO supply chain offers ANZ Government and Energy Providers:

  • Cost Reduction: Lower repair and downtime costs with predictive maintenance.
  • Improved Reliability: Reduce outages with better asset management.
  • Sustainability Support: Extend asset life during the transition to renewables.
  • Workforce Efficiency: Upskill staff to reduce reliance on contractors.

In 2025, this is your path to a more efficient energy sector.

How Trace Consultants Can Help ANZ Government and Energy Providers

At Trace Consultants, we bring deep expertise to ANZ’s energy MRO supply chains. Here’s how we can help:

1. Asset Assessment and Lifecycle Planning

We’ll evaluate your coal-fired assets, identifying risks and designing lifecycle plans to manage aging infrastructure.

2. Predictive Maintenance Implementation

We’ll introduce IoT and analytics to shift from reactive to predictive maintenance, reducing unplanned outages.

3. Inventory and Procurement Optimisation

We’ll streamline your spare parts inventory, negotiate vendor partnerships, and forecast demand to cut costs.

4. Supply Chain Visibility Solutions

We’ll implement integrated systems and real-time dashboards, ensuring a single source of truth across your operations.

5. Workforce Upskilling Programs

We’ll develop training and knowledge transfer initiatives to build internal maintenance capability.

6. Transition Support

We’ll align your MRO strategy with the energy transition, deferring costs and ensuring regulatory compliance.

7. Reliability Enhancement

We’ll optimise your MRO processes to improve reliability, boosting public trust and government support.

8. Ongoing Support and Strategy Refinement

We’ll provide continuous support, refining your MRO supply chain to adapt to ANZ’s evolving energy needs.

We work hands-on, partnering with you to transform your MRO supply chain. With Trace Consultants, your coal-fired energy operations will be more efficient, reliable, and future-ready.

Looking Ahead: Your MRO Advantage in 2025

In 2025, optimising MRO supply chains is how ANZ Government and Energy Providers manage the high costs of coal-fired energy. Tackling old assets with lifecycle planning and reducing unplanned maintenance through predictive tools and better inventory management will drive efficiency. Supporting the energy transition, improving reliability, and upskilling your workforce will ensure long-term success.

Don’t let outdated practices drain your resources. Contact Trace Consultants today. Let’s optimise your MRO supply chain—because in ANZ’s energy sector, every dollar and minute counts.

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Strategy & Design
April 8, 2024

Optimising Hospital BOH Logistics: A Key to Patient Care and Operational Excellence

Unlock the potential of BOH logistics in healthcare—Boost patient care & cut costs with our expert strategies on loading docks, inventory management, and more.

Optimising Hospital BOH Logistics: A Key to Patient Care and Operational Excellence

Improving back-of-house (BOH) logistics in hospitals is not just a matter of enhancing operational efficiency; it's a critical strategy for significantly improving patient care, inventory availability, responsiveness, and operating costs. While the primary focus of healthcare institutions is to provide top-notch patient care, the role of effective logistics and supply chain management cannot be underestimated. The intricacies of loading dock design, dock to ward channels, central and satellite stores, production kitchens, linen logistics, and waste management design are all pivotal areas that, when optimized, can lead to a more efficient, cost-effective, and patient-centered healthcare delivery system.

Loading Dock Design

The loading dock serves as the heart of hospital logistics, acting as the primary reception point for goods and supplies. An efficiently designed loading dock minimizes congestion, ensures the swift unloading of goods, and facilitates the smooth flow of supplies into the hospital. This efficiency is critical for maintaining the availability of medical supplies, medications, and other necessities that directly impact patient care. An optimized design considers factors such as dock levellers, adequate space for trucks, and easy access for moving goods directly into storage or processing areas. By reducing delivery times and enhancing the handling process, hospitals can prevent shortages and ensure that vital supplies are always available.

Dock to Ward Channels

Once supplies are received at the loading dock, they must be distributed throughout the hospital efficiently. The design of dock to ward channels plays a crucial role in this process. Efficient channels ensure that supplies reach their intended destinations quickly and with minimal handling, reducing the risk of damage or delays. This direct impact on responsiveness and inventory availability means that patients receive the care they need without unnecessary waiting times. Moreover, streamlined dock to ward channels can significantly reduce the labor and costs associated with moving supplies, contributing to lower operating costs.

Central Stores and Satellite Stores

The strategic use of central and satellite stores within a hospital ensures that supplies are stored logically and are readily accessible when needed. Central stores act as the main repository for goods, offering bulk storage and serving as a hub from which supplies are distributed to various points of use. Satellite stores, located closer to specific wards or departments, hold smaller, more targeted inventories based on the unique needs of each area. This two-tiered approach allows for greater inventory control, reduces the distance that supplies need to be transported, and ensures that critical items are always at hand, thereby improving responsiveness and patient care.

Production Kitchens

In the context of hospital operations, production kitchens are not merely about food preparation; they are a vital component of patient care. Nutritious, timely, and dietary-specific meals can significantly impact patient recovery and satisfaction. Efficiently managed production kitchens, with a focus on workflow design and supply chain integration, ensure that meals are prepared and delivered in a timely manner, meeting the dietary needs of patients. Furthermore, optimizing kitchen operations can lead to cost savings through reduced waste and improved inventory management of food supplies.

Linen Logistics Design

The management of linen logistics is another critical aspect of hospital operations that directly affects patient care and satisfaction. Efficient linen logistics ensure that a constant supply of clean and sterilized linens is available to meet the needs of patients and healthcare providers. This includes sheets, towels, gowns, and other textile products. Optimizing the linen supply chain—from laundry services to storage and distribution—enhances patient comfort and hygiene while reducing operational costs through better inventory management and reduced waste.

Waste Management Design

Effective waste management is crucial for maintaining a safe and healthy hospital environment for patients, staff, and visitors. Properly designed waste logistics systems ensure the safe, efficient, and environmentally responsible disposal of medical and non-medical waste. This includes segregation, collection, and disposal processes that comply with health and safety regulations. An optimized waste management system reduces the risk of infection, contributes to a more pleasant hospital environment, and can lead to cost savings through recycling and waste reduction initiatives.

The integration of efficient back-of-house logistics in hospitals is a multifaceted strategy that significantly enhances patient care, inventory management, responsiveness, and operational costs. Each component, from loading dock design to waste management, plays a critical role in the overall effectiveness of hospital operations. By investing in and optimizing these logistical aspects, healthcare institutions can not only achieve higher levels of efficiency and cost-effectiveness but also, most importantly, provide better care and outcomes for their patients. The future of healthcare logistics lies in the continuous improvement and integration of these systems, leveraging technology and best practices to meet the evolving needs of patients and healthcare providers.

Strategy & Design
January 8, 2024

Designing Optimal Back of House Infrastructure for Major Events

Explore how effective 'back of house' design is pivotal for the success of major F&B and hospitality venues and events, with expert insights from Shanaka Jayasinghe.

Interview: Designing Optimal Back of House Infrastructure for F&B and Hospitality Destinations.

Interviewer: Today, we're speaking with Shanaka Jayasinghe, an expert in designing and optimising 'back of house' infrastructure for food & beverage and hospitality venues. Shanaka, with the Olympics around the corner and major events & destination venues in mind, can you share insights into the importance of safe, scalable, and efficient infrastructure?

Shanaka Jayasinghe: Absolutely. The 'back of house' is the engine room for any major F&B or hospitality venue, especially those of larger scale, for example Integrated Resort Venues and Major Sporting Precincts. Efficient design is critical not only for the success of the event but also for the safety and experience of staff and guests, and the long-term legacy for the community.

The Importance of 'Back of House' Infrastructure

Interviewer: What makes the 'back of house' infrastructure so crucial for major F&B and hospitality destinations?

Shanaka Jayasinghe: 'Back of house' areas like loading docks, kitchens, and waste management systems are vital for the smooth operation of any large venue. They must be designed to handle high volumes of goods and people, ensuring that everything from food delivery to waste disposal happens seamlessly. Safety, scalability, and efficiency are key. The infrastructure must protect staff and guests, adapt to fluctuating demands, and operate with minimal waste and maximum productivity.

Designing for Safety, Scalability, and Efficiency

Interviewer: How can venues ensure their 'back of house' infrastructure is safe, scalable, and efficient?

Shanaka Jayasinghe: It starts with thoughtful design:

  1. Safety: This includes everything from ensuring proper ventilation in kitchens to designing traffic flows that prevent accidents between vehicles and pedestrians. Compliance with health and safety regulations is a minimum standard, but truly effective designs anticipate and mitigate risks before they arise.
  2. Scalability: Venues must accommodate both everyday operations and peak demands during major events. This might involve modular spaces, flexible equipment, or staffing plans that can expand and contract as needed.
  3. Efficiency: Efficient 'back of house' designs reduce operating costs and improve service. This involves optimizing layouts for smooth flows of goods and people, investing in high-quality equipment that speeds up production and reduces energy use, and implementing systems that reduce waste.

Stages in Planning for Major Events

Interviewer: What are the different stages in planning 'back of house' infrastructure for a major event like the Olympics?

Shanaka Jayasinghe: Planning for such events typically involves several stages:

  1. Conceptual Design: This is where the vision for the venue is created, considering the unique requirements of the event, the expected number of guests, and the types of services to be provided.
  2. Detailed Design and Development: Once the concept is approved, detailed plans are drawn up. This stage involves close collaboration with architects, engineers, chefs, and other stakeholders to ensure every aspect of the 'back of house' is optimally designed.
  3. Construction and Fit-Out: This stage turns the plans into reality. It's crucial to maintain quality control and stay on schedule and budget.
  4. Operational Planning and Training: Before the venue opens, staff need to be recruited, trained, and familiarized with the facilities. Operational plans for everything from supply chain logistics to emergency responses must be tested and refined.
  5. Event Execution and Review: During the event, the 'back of house' must operate like clockwork. Afterward, a thorough review can capture learnings for future events.

The Pivotal Role of Procurement in Planning Major Events

In planning for major events, the role of procurement is both critical and multifaceted. It involves not just acquiring goods and services but also strategically managing relationships and resources to ensure that every aspect of the event is delivered on time, within budget, and to the highest standards. Here’s how procurement plays a key role across different stages:

  1. Identifying Needs and Sourcing Suppliers: Early in the planning process, procurement teams work closely with all stakeholders to identify the precise needs of the event, from construction materials for temporary structures to food and beverages for hospitality services. They then source suppliers who can meet these needs, considering factors such as cost, quality, capacity, reliability, and sustainability.
  2. Assessing and Partnering with Suppliers: Once potential suppliers are identified, the procurement team assesses them based on various criteria, including past performance, financial stability, and compliance with relevant laws and regulations. They look for partners who not only provide the necessary goods and services but can also adapt to the dynamic nature of event planning, often under tight timelines.
  3. Contracting and Managing Supplier Relationships: Procurement is responsible for negotiating contracts that protect the interests of the event while ensuring fair terms for suppliers. This includes clear specifications, delivery schedules, and performance criteria. Throughout the event planning and execution, procurement maintains close communication with suppliers, managing orders, handling logistics, and resolving any issues that arise.
  4. Operational Procurement for 'Business as Usual' (BAU): Beyond the unique demands of the event itself, procurement ensures the ongoing supply of regular goods and services needed for the 'back of house' operations. This includes everything from routine maintenance supplies to daily food deliveries, ensuring that the event's infrastructure and services run smoothly throughout.

Effective procurement is about more than just buying; it's about strategically sourcing and managing resources to deliver a successful event. From the initial planning stages to the final breakdown, procurement teams are integral in ensuring that every element comes together seamlessly, contributing to the overall success and sustainability of the event.

Impact of Proper Design on Experience and Legacy

Interviewer: How does proper 'back of house' design impact the overall experience and leave a sustainable, lasting positive change for communities?

Shanaka Jayasinghe: A well-designed 'back of house' ensures that guests enjoy seamless service, enhancing their overall experience. For staff, it creates a safe and pleasant working environment. But the impact goes beyond the event itself. Sustainable designs can reduce the environmental footprint of venues, promote local employment, and leave behind facilities that benefit the community for years to come. For instance, a modular kitchen used during an event can be repurposed for community use afterward, or waste management systems can set new standards for environmental responsibility in the area.

The Role of Consultancy in Designing Back of House Infrastructure

Interviewer: How can consultants like you assist in this complex process?

Shanaka Jayasinghe: Consultants bring a wealth of experience and a fresh perspective. We can guide venues through each stage of the process, from initial concept to post-event review. Our role often involves benchmarking against best practices, advising on the latest technologies and methods, and helping to coordinate the many stakeholders involved in such projects. Ultimately, we're here to ensure that the 'back of house' infrastructure meets the highest standards of safety, scalability, and efficiency.

Interviewer: Thank you, Shanaka, for sharing your valuable insights on designing effective 'back of house' infrastructure for major F&B and hospitality destinations. Your expertise offers a clear guide for businesses looking to excel in hosting major events.

Shanaka Jayasinghe: It's been a pleasure. Remember, the 'back of house' may be behind the scenes, but it's central to the success of any major event or destination. Proper planning and design are key to delivering a safe, enjoyable, and sustainable experience.

The Importance of 'Back of House' Infrastructure: The Risks of Poor Design

When delving into the 'back of house' infrastructure, the stakes of design and execution are incredibly high. Poorly designed back-of-house areas can have cascading effects on the entire operation of major F&B and hospitality venues, particularly during large-scale events. Let's break down the potential pitfalls of inadequate back-of-house infrastructure:

Unsafe Working Environments

Inefficiently designed spaces can lead to overcrowded, chaotic, and unsafe working conditions. Poorly planned traffic flows might lead to accidents between staff or between staff and vehicles, especially in high-paced environments. Insufficient ventilation in areas like kitchens can lead to health risks, while inadequate waste disposal systems can create hazardous conditions.

Traffic Congestion and Parking Issues

Loading docks are the lifeblood of any large venue, facilitating the smooth flow of goods in and out. However, if these areas are not strategically planned, they can become bottlenecks, causing traffic congestion not only within the venue but also on surrounding roads. Similarly, poorly designed guest car parks can lead to frustrating delays for attendees, negatively impacting their overall experience and potentially causing safety issues.

High Cost to Serve

A poorly designed back of house significantly increases the cost to serve. Inefficiencies in the layout can lead to longer distances for moving goods from the loading dock to storage areas or kitchens, increasing labor and equipment costs. If waste management systems are not optimally designed, the costs and complexities of disposal can escalate quickly.

Increased COGs and Labour Costs

Suboptimal back-of-house design can lead to higher costs of goods sold and labor. For instance, inefficient kitchen designs might require more staff to perform the same amount of work, or lead to higher wastage of ingredients. Poorly organized storage areas can result in damaged goods or increased time spent locating items, both of which can significantly drive up costs.

Compromised F&B Experience

The ultimate goal of any F&B and hospitality venue is to provide an exceptional experience to guests. However, if the back of house is poorly designed, it can lead to delays in service, errors in order fulfillment, and a general decrease in the quality of food and beverages. This not only impacts the venue's reputation but can also lead to reduced patronage and revenue.

In summary, the 'back of house' infrastructure is a critical component that, if not properly designed, can lead to unsafe working conditions, operational inefficiencies, increased costs, and a diminished guest experience. It's a foundational element that requires careful, strategic planning and execution to ensure the success and sustainability of any major F&B and hospitality operation.

Strategy & Design
October 14, 2024

Hospital Design: Trace Consultants’ BOH Logistics Framework | Healthcare Supply Chain Solutions

Discover how Trace Consultants’ BOH Logistics Excellence Framework is helping architectural firms and building authorities design hospitals that balance clinical needs with operational efficiency.

How Trace Consultants is Partnering with Architectural Firms and State Building Authorities to Bridge Operational Capability Gaps in Healthcare Facilities

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.