In an increasingly competitive and globalised business environment, effective sales and operations planning (S&OP) is vital for businesses to keep up with fluctuating market dynamics. Advanced planning systems like Kinaxis are game-changers for businesses. They help synchronise demand and supply while balancing profitability and risk. This blog post will delve into how Kinaxis facilitates effective S&OP processes, complete with statistics and case studies from Australian businesses.

What is Kinaxis?

Before diving in, let's take a moment to understand what Kinaxis is. Kinaxis is a supply chain management and S&OP solution that provides end-to-end supply chain visibility. This cloud-based system empowers businesses to make data-driven decisions, reduce risk, and achieve a competitive edge.

The Kinaxis Advantage

Why should Australian businesses consider Kinaxis for their S&OP processes? The answer lies in its unique ability to balance demand, supply, and financial plans simultaneously. Traditional S&OP tools often separate these elements, creating silos that impede efficient decision-making.

Kinaxis transforms this process. It offers real-time data, scenario simulations, and AI-powered analytics, helping companies adjust their strategies proactively in response to market shifts. This leads to improved revenue forecasting, more accurate inventory management, and streamlined production schedules.

Case Study: A Leading Australian Pharmaceutical Company

A leading Australian pharmaceutical company experienced these benefits firsthand when they incorporated Kinaxis into their operations. Before Kinaxis, the company had struggled with demand-supply imbalances and late deliveries due to inefficient S&OP processes. Their legacy systems couldn't provide the real-time data needed for agile decision-making, leading to a 15% loss in potential sales.

After implementing Kinaxis, the company reduced their late delivery rates by 60% and increased their on-time in-full delivery rates to 92%, significantly improving customer satisfaction. Additionally, they saw a 20% increase in revenue within the first year of implementation due to more accurate demand forecasting and inventory management.

Case Study: Australian Electronics Retailer

A prominent Australian electronics retailer also leveraged Kinaxis to optimise their S&OP. With thousands of SKUs and multiple suppliers, the retailer found it challenging to align demand and supply efficiently. Their existing S&OP systems were slow and couldn't cope with the complexities of their operations, leading to overstocking and markdown losses.

After integrating Kinaxis, the retailer achieved an impressive 30% reduction in inventory holding costs within the first six months. Simultaneously, they decreased stockouts by 45%, leading to an improved shopping experience for customers.

These case studies clearly demonstrate the transformative power of Kinaxis in optimising S&OP processes.

The Power of Advanced Planning Systems

In today's fast-paced business world, companies need tools that offer real-time insights and predictive capabilities to adapt to market changes. Advanced planning systems like Kinaxis provide this capability, leading to improved efficiency, reduced costs, and enhanced customer satisfaction.

Embracing these systems is not just a choice; it's a necessity for Australian businesses that want to stay ahead of the competition. With the right planning and execution, businesses can harness the power of Kinaxis to drive their S&OP processes to new heights.

To conclude, as we move further into the digital age, solutions like Kinaxis become pivotal to a company's success. They offer an intelligent, integrated, and intuitive platform that enables businesses to not just survive but thrive in the market's volatility. Now is the time for Australian businesses to ride the wave of this digital revolution.

Remember, advanced planning leads to advanced results. Are you ready to level up with Kinaxis?

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

Interview with Tim Fagan: Navigating IT Transformation in Australian Businesses

Interviewer: Welcome, Tim Fagan, and thank you for joining us to discuss the evolving landscape of IT transformation within Australian businesses, especially in supply chain management. In light of significant cost pressures and uncertainty, we're interested in your perspective on the shift from large-scale IT transformations to more tactical and targeted IT changes.

Tim Fagan: Thank you for having me. It's an interesting time for business executives as they navigate through these challenges. The shift in strategy towards more focused and flexible IT solutions is a reflection of the need for agility and quick wins in today's business environment.

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Rethinking IT Transformation

Interviewer: Can you elaborate on why businesses are steering away from large-scale IT transformations?

Tim Fagan: Certainly. Large-scale IT transformations are often costly, complex, and carry significant risk, especially in uncertain times. They typically require substantial upfront investment and a long period before businesses see any return. In the current economic climate, executives are looking for solutions that deliver immediate value and can be adjusted as circumstances change. This means opting for smaller, more targeted changes that can be implemented quickly and cost-effectively.

The Rise of Best of Breed Systems

Interviewer: We've seen a resurgence of best of breed systems. What's driving this comeback?

Tim Fagan: Best of breed systems offer specialised functionality that meets specific business needs without the complexity and cost of large integrated suites. They are making a comeback as businesses seek to enhance capabilities in particular areas like supply chain management, customer relationship management, or financials, without overhauling their entire IT infrastructure. These systems are often more user-friendly and quicker to implement than their integrated counterparts, making them an attractive option for businesses looking to make incremental improvements.

Leveraging Low Code/No Code Solutions

Interviewer: How are low code and no code solutions like Microsoft Power Apps changing the game for businesses?

Tim Fagan: Low code and no code platforms are a game-changer, enabling businesses to develop custom applications quickly and with minimal technical expertise. Tools like Microsoft Power Apps allow business users to create solutions that address specific operational challenges, automate processes, or improve data management. These platforms significantly reduce development time and cost, empower end-users, and can be continuously adapted as business needs evolve. They're a perfect example of tactical IT step-changes that deliver immediate and significant benefits.

The Compelling ROI of Low Code/No Code Solutions

Interviewer: You mentioned low code/no code solutions as a key tactical change. Can you discuss their return on investment?

Tim Fagan: Absolutely. Low code/no code solutions are revolutionising how businesses approach software development and IT problem-solving. One of the most compelling aspects of these solutions is their return on investment. Often, businesses see a payback period of less than 12 months with an ROI that can exceed 10:1.

The reasons behind this impressive ROI include:

1. Speed of Deployment: Low code/no code platforms significantly reduce development time, allowing businesses to quickly implement solutions and start realising benefits.
2. Reduced Development Costs: These platforms require less technical skill and fewer resources to develop and maintain, leading to lower overall costs.
3. Business Agility: By enabling rapid response to operational challenges and market changes, these solutions help businesses avoid costly delays and lost opportunities.
4. Reduced Risk: With faster deployment and lower costs, the financial risk associated with these IT investments is significantly reduced.

This powerful combination of quick deployment, high impact, and low cost makes low code/no code solutions an attractive option for businesses looking to improve their supply chain performance and overall resilience.

Benefits of Tactical IT Step-Changes

Interviewer: What are the benefits of these more tactical IT changes for businesses, particularly in the supply chain?

Tim Fagan: There are several benefits. Firstly, tactical changes can be implemented rapidly, allowing businesses to respond quickly to market changes or internal challenges. This agility is crucial in maintaining competitive advantage. Secondly, they often require less investment and carry lower risk than large-scale transformations, making them more viable in times of cost pressure. In supply chain management, these targeted solutions can lead to better inventory management, improved supplier collaboration, and more efficient logistics, directly impacting the bottom line.

Real-World Examples of Successful Tactical Changes

Interviewer: Can you provide some examples where tactical IT changes have driven significant improvements?

Tim Fagan: Sure. One company implemented a best of breed warehouse management system to address specific bottlenecks in their supply chain. This led to improved inventory accuracy and faster order processing times. Another example is a business that used a low code platform to develop a custom application for supplier performance management, significantly enhancing their procurement process and reducing costs.

Challenges and Considerations

Interviewer: What challenges should businesses be aware of when adopting this approach?

Tim Fagan: While tactical IT changes can offer significant benefits, businesses need to ensure they don't lead to a fragmented IT landscape. It's important to maintain a coherent overall architecture and ensure new solutions integrate well with existing systems. There's also the challenge of continuously managing and updating these solutions to meet evolving business needs.

The Role of IT Leadership

Interviewer: How should IT leaders and executives approach these step-changes?

Tim Fagan: IT leaders need to be strategic yet flexible. They should foster a culture of innovation and empower their teams to identify and implement solutions that address specific business challenges. At the same time, they need to ensure that these changes align with the overall business strategy and IT architecture. It's about finding the right balance between innovation, agility, and coherence.

Trace Supply Chain Consultants: Your Partner in Tactical IT Transformation

Interviewer: In this evolving landscape, how can Trace Supply Chain Consultants assist businesses in adopting these more tactical and targeted IT changes?

Tim Fagan: Trace Supply Chain Consultants are perfectly positioned to help businesses navigate and implement these strategic IT changes. Our team of experienced consultants understands the nuances of supply chain operations and the latest in IT advancements. Here's how we can assist:

1. Strategic Planning: We work with businesses to develop a clear and coherent IT strategy that aligns with their operational goals and addresses their most pressing challenges.
2. Solution Identification: Our consultants are adept at identifying the most effective best of breed systems and low code/no code platforms that can address specific business needs.
3. Implementation Support: We don't just advise; we get involved in the implementation to ensure that the solutions are effectively integrated into the business operations and are delivering the expected benefits.
4. Continuous Improvement: Our job doesn't end with implementation. We help businesses continuously monitor performance and adapt their IT solutions to ensure they remain effective and aligned with business needs.

By partnering with Trace Supply Chain Consultants, businesses can confidently embark on their journey toward tactical IT transformation, ensuring they're making the right investments that deliver real value.

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Interviewer: Thank you, Tim, for sharing your insights on this tactical shift in IT strategy within Australian businesses. Your expertise sheds light on how companies can navigate these uncertain times with smarter, more focused IT investments.

Tim Fagan: It's been a pleasure discussing these trends. The key takeaway for businesses is that in times of uncertainty and cost pressures, flexibility and agility in IT investments can lead to significant improvements and help maintain a competitive edge. Thank you for having me.

Enhancing Supply Chain Management with Low-Code Technologies - by Mathew Tolley

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In the rapidly evolving landscape of supply chain management, low-code platforms like Microsoft Power Apps and Mendix empower companies to swiftly develop custom applications that integrate various data sources and device inputs (think Internet-of-Things (IoT) devices) without the need for extensive coding expertise. This democratisation of app development enables organisations to build solutions that connect several different services and inputs, allowing them to monitor supply chains in real-time and proactively address issues, significantly improving operational efficiency.

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How Low-Code Platforms Assist with Solution Development

Low-code development platforms simplify the process of building applications by providing a graphical user interface and pre-built templates. Microsoft Power Apps, for instance, allows users to drag and drop components to create. Benefits for companies include:

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1. Simplified Development Process

Users can create custom applications quickly, reducing the time and cost associated with traditional software development. This agility is crucial for supply chain operations that require swift adjustments to changing conditions.

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2. Seamless IoT Integration

Power Apps can connect to IoT hubs and devices, enabling the collection and analysis of sensor data, such as weights on a shelf, or RFID tag scans. This integration facilitates real-time monitoring of assets, environmental conditions, and other critical parameters in the supply chain.

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3. Real-Time Data Visualisation

The platform allows for the creation of dashboards and reports that visualise data in real-time. Decision-makers can access insights instantly, enabling proactive responses to potential disruptions.

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4. Scalability and Flexibility

As business needs evolve, applications built on Power Apps can be easily modified or scaled, ensuring long-term relevance and utility.

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Examples of Low-Code in Supply Chain Management

Several companies have embraced low-code platforms to enhance their supply chain operations. Here are two relevant examples:

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AntTail: Tackling Last-Mile Medication Delivery with Mendix Low-Code Platform

AntTail, a Netherlands-based company specialising in pharmaceutical supply chain solutions, has significantly enhanced the last-mile delivery of medications. Recognising the critical importance of temperature control in managing pharmaceuticals, AntTail developed a smart application using the Mendix low-code platform that integrates IoT sensors to monitor and ensure the integrity of medications during transit. By placing IoT sensors within medication packages, they continuously track temperature conditions throughout the delivery process. This real-time data ensures that any deviations from the required temperature range are immediately identified, allowing for prompt corrective action.

Utilising the flexibility of Mendix's low-code platform, AntTail rapidly developed an application that collects and analyses sensor data, providing actionable insights for all stakeholders—including manufacturers, distributors, and patients. This end-to-end visibility helps in tracking shipments, verifying product authenticity, and ensuring timely deliveries.

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Outcome and opportunities.

AntTail's solution assists pharmaceutical companies in complying with stringent regulations regarding the handling and transportation of medications by offering detailed records of temperature data for compliance audits and quality assurance processes. By guaranteeing that medications are stored and transported under optimal conditions, AntTail enhances patient safety and trust, reducing the risk of compromised medications reaching end-users. Additionally, the proactive monitoring system minimises product waste caused by spoilage, leading to significant cost savings for pharmaceutical companies.

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Ardent Mills: Enhancing Supply Chain Operations with Microsoft Power Apps

Ardent Mills, the leading flour-milling and ingredient company in the United States, leveraged Microsoft Power Apps to streamline their supply chain and operational processes. Facing challenges with data silos and manual workflows across numerous facilities, they sought a solution to enhance efficiency, data accessibility, and collaboration—without the extensive time and costs associated with traditional software development.

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Custom apps for anyone, by anyone.

By utilising the low-code capabilities of Microsoft Power Apps, Ardent Mills empowered their employees—regardless of technical expertise—to develop over 20 custom applications. These apps automated and digitised various manual processes, including inventory management, equipment inspections, and quality control procedures. The swift development cycle meant the company could promptly address specific operational needs, significantly improving efficiency.

Integrating Power Apps with Microsoft Dataverse, Ardent Mills established a centralised data platform that ensured consistent and accurate information across the organisation. Coupled with Power BI, they gained advanced analytics and real-time insights into supply chain operations, facilitating better decision-making and forecasting. The custom applications also enhanced collaboration among teams spread across different locations. For example, an app known as “Cross Check” ensures equipment is calibrated consistently across sites to maintain the quality of flour produced. This app allows quality managers and lab technicians from different plants to enter data directly, and it's currently live across 35 plants. Used monthly by over 70 quality managers, lab technicians, and others, it facilitates approximately 170 checks each month.

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Outcome and opportunities.

By automating manual tasks, Ardent Mills reduced operational costs and minimised errors associated with paper-based processes. The scalability of Power Apps allowed them to continuously evolve their applications as business needs changed, ensuring long-term value and adaptability. This approach not only streamlined their operations but also fostered a culture of innovation and collaboration within the company.

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How Trace Consultants Can Assist Australian Companies

In light of the transformative benefits demonstrated by AntTail and Ardent Mills through the adoption of low-code platforms, Australian companies stand to gain significantly by embarking on a similar journey. Trace is uniquely positioned to guide businesses through the design, development, and deployment of tailored low-code solutions that enhance supply chain management. Here's how we can assist:

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1. Strategic Assessment and Road mapping

To help your business maximise the benefits of low-code applications, we start by conducting a thorough supply chain analysis. Our team performs a comprehensive assessment of your current supply chain processes to identify areas where integrating low-code solutions can deliver the most value. By pinpointing these key areas, we can recommend targeted solutions that enhance efficiency and visibility across your entire supply chain.

Following this, we assist in developing a tailored technology strategy. We work with you to formulate a strategic roadmap that aligns technological solutions with your specific supply chain objectives, ensuring a focused approach to digital transformation. This roadmap guides the implementation of low-code applications in a way that supports your goals, optimises processes, and facilitates a smooth transition to more advanced supply chain management.

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2. Design and Development of Custom Low-Code Applications

Leveraging our expertise in low-code platforms like Microsoft Power Apps, our team designs custom applications tailored to address your specific operational challenges. Whether it's demand planning, inventory management, or real-time asset monitoring, we create solutions that streamline processes and enhance efficiency. By focusing on your unique needs, we ensure that the applications we develop not only solve immediate issues but also contribute to long-term operational success.

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3. Seamless Integration and Deployment

We ensure that new applications integrate seamlessly with your existing systems such as ERP, CRM, and legacy supply chain applications, providing a unified platform for all supply chain activities. Our integration process minimises disruptions and ensures that all components of your supply chain work harmoniously together. Additionally, we provide comprehensive training for your staff to maximise the adoption and effective use of new applications. By fostering a culture of innovation within your organisation, we help your team embrace new technologies confidently and efficiently.

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Benefits of Partnering with Trace Consultants

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1. Accelerated Implementation

Our expertise significantly reduces the time from concept to deployment. By streamlining the development process and leveraging the efficiencies of low-code platforms, we enable you to realise benefits much sooner than traditional development methods would allow. This rapid turnaround not only accelerates your return on investment but also allows your business to respond quickly to market changes and opportunities.

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2. Cost-Effective Solutions

By utilising low-code platforms, we minimise development costs while delivering high-quality, customised applications tailored to your specific needs. The reduced need for extensive coding and shorter development cycles mean lower expenditure without compromising on functionality or quality.

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3. Empowered Workforce

Through comprehensive training and the implementation of user-friendly applications, we empower your employees to actively contribute to process improvements and innovation. By involving your team in the development and utilisation of these tools, we foster a culture of continuous improvement and engagement. The low-code ecosystem is a great way to engage super users in developing and improving tactical solutions, while adhering to IT governance policies on architecture, security, and access.

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Conclusion

The success stories of AntTail and Ardent Mills illustrate the profound impact that low-code platforms can have on supply chain management. By partnering with Trace, Australian companies can unlock similar benefits—enhancing operational efficiency, engaging users in solution design, and improving processes and technology in a cost effective way.

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Mathew Tolley

Partner

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