Why Supply Chain Investments Are Crucial in 2025

In an era of global disruption, rising costs, and evolving customer expectations, the supply chain has emerged as a strategic enabler for business success. For CFOs and CEOs in Australia and New Zealand, 2025 presents a pivotal moment to invest in the supply chain to unlock value, boost efficiency, and drive sustainable growth.

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The Business Case for Supply Chain Investments

Supply chain inefficiencies can result in lost revenue, increased operating costs, and missed market opportunities. By strategically investing in network optimisation, warehouse design, advanced planning solutions, procurement transformation, supply management, automation, and emerging supply chain technologies, organisations can secure competitive advantages.

1. Network Optimisation: Reducing Costs and Enhancing Service Levels

Why It Matters:
An optimised supply chain network aligns distribution centres, transportation routes, and inventory positioning with demand patterns. For CFOs and CEOs, this means minimising costs while maintaining service excellence.

Key Benefits:

• Reduced Costs: Identify redundant facilities and optimise transport routes.
• Improved Responsiveness: Position inventory closer to demand hubs.
• Sustainability Gains: Reduce emissions through efficient logistics planning.

Example in Action:
Trace Consultants recently partnered with a leading ANZ FMCG company, delivering a 15% reduction in transport costs through network redesign while improving delivery lead times.

2. Warehouse Design: Building for Efficiency and Scalability

Why It Matters:
Warehouses are not just storage spaces—they are pivotal hubs for efficiency. Investing in modern warehouse design ensures scalability, operational efficiency, and seamless integration with digital systems.

Key Features of Effective Warehouse Design:

• Optimised Layouts: Reduce travel time and increase throughput.
• Technology Integration: Enable automation and real-time inventory visibility.
• Sustainability Focus: Incorporate energy-efficient designs.

Example in Action:
Trace Consultants collaborated with an ANZ retailer to design a state-of-the-art distribution centre, integrating robotics for picking and packing, resulting in a 20% productivity boost.

3. Advanced Planning Solutions: Improving Forecast Accuracy

Why It Matters:
Advanced planning solutions (APS) enable businesses to better anticipate demand, optimise inventory, and align supply with market needs. In 2025, APS is a must-have for organisations seeking agility.

Key Benefits:

• Improved Forecast Accuracy: Minimise stockouts and overstocking.
• Scenario Planning: Adapt quickly to market disruptions.
• Integrated Decision-Making: Link demand planning with production and logistics.

Example in Action:
A mining company in Australia leveraged APS implemented by Trace Consultants to reduce inventory holding costs by 12% while meeting customer demand during market volatility.

4. Procurement Transformation: Driving Cost Savings and Sustainability

Why It Matters:
Procurement is more than cost-cutting; it’s a strategic function that drives value. Transforming procurement processes ensures organisations can optimise supplier relationships, reduce costs, and meet regulatory requirements.

Key Focus Areas:

• Spend Analysis: Identify opportunities for cost rationalisation.
• Sustainable Procurement: Align sourcing with ESG goals.
• Supplier Collaboration: Build partnerships to unlock value.

Example in Action:
Trace Consultants helped a healthcare organisation consolidate supplier contracts, achieving $10 million in annualised savings while meeting modern slavery compliance standards.

5. Supply Management: Enhancing Operational Efficiency

Why It Matters:
Effective supply management balances working capital and ensures service levels are met. In 2025, organisations must leverage technology and data to drive supply chain visibility.

Key Benefits:

• Improved Inventory Turns: Minimise excess stock.
• Real-Time Visibility: Mitigate risks and disruptions.
• Customer Satisfaction: Ensure availability of high-demand products.

Example in Action:
An ANZ manufacturer used Trace Consultants' expertise to implement real-time supply chain dashboards, reducing order cycle times by 25%.

6. Automation: Scaling Operations with Robotics and AI

Why It Matters:
Automation reduces human error, improves speed, and enhances scalability. CFOs and CEOs must invest in automation to stay competitive in a fast-paced market.

Key Applications:

• Warehouse Automation: Robotics for picking and packing.
• Transport Automation: Route optimisation and autonomous vehicles.
• Process Automation: AI-driven demand planning and order processing.

Example in Action:
A retail client partnered with Trace Consultants to implement robotic process automation (RPA), cutting labour costs by 18% and improving order accuracy.

7. New Supply Chain Technologies: Driving Digital Transformation

Why It Matters:
Emerging technologies, such as blockchain, IoT, and low-code/no-code platforms, are transforming supply chains. They provide transparency, efficiency, and resilience.

Key Innovations:

• Blockchain: Enhance traceability and compliance.
• IoT: Enable real-time tracking of assets and inventory.
• Low-Code/No-Code: Rapidly deploy customised solutions.

Example in Action:
Trace Consultants successfully deployed Microsoft Power Apps for a leading ANZ hospitality group, streamlining asset management with real-time data capture and reporting.

Why 2025 Is the Year to Act

The global business environment is becoming increasingly complex. Geopolitical tensions, inflationary pressures, and evolving customer expectations are placing supply chains under the microscope. CFOs and CEOs in ANZ must act decisively to ensure their organisations are not left behind.

How Trace Consultants Can Help

Trace Consultants is a leading supply chain advisory firm specialising in helping Australian and New Zealand organisations achieve supply chain excellence. Our expertise spans:

• Network Optimisation
• Warehouse Design and Operations
• Advanced Planning Solutions
• Procurement Transformation
• Automation and Technology Integration

By partnering with Trace Consultants, your organisation can unlock cost savings, improve service levels, and achieve sustainable growth.

Supply chain investments in 2025 are no longer optional—they are essential. For CFOs and CEOs, the opportunity to drive cost efficiencies, improve operational performance, and build resilient organisations lies in strategic supply chain initiatives.

Is your organisation ready to invest in the future of supply chain excellence?

Supply Chain Organisational Design Options: Finding the Best Fit for Your Business

In a rapidly evolving business environment, organisations across Australia and New Zealand are continually reassessing their supply chain models to stay competitive and resilient. With increasing complexity in global supply chains and pressure to maintain efficiency, the need for a structured and integrated supply chain framework has never been more critical. Understanding where your business fits on the supply chain organisational design matrix can unlock significant operational improvements and long-term success.

In this article, we will explore a framework that categorises supply chain models based on two key dimensions: Differentiated Operations and Differentiated Design. We'll dive deep into each quadrant, outlining the characteristics of these models and the strategic opportunities they present for businesses. With tailored solutions from Trace Consultants, organisations can align their operations with the most suitable supply chain strategy to drive sustained competitive advantage.

Introduction to the Supply Chain Organisational Design Matrix

The supply chain matrix provides a comprehensive model for companies to position their supply chain strategies across two key factors:

1. Supply Chain Integrated Design (SC Integrated Design) – This represents the degree of customisation and innovation applied to the design of the supply chain. Businesses can either opt for a standardised or differentiated design approach depending on their product offerings and customer needs.
2. Supply Chain Integrated Operations (SC Integrated Operations) – This dimension focuses on how well-integrated a company’s supply chain operations are. It measures the extent to which a company operates with uniform processes across business units or whether they require more flexible, business-specific approaches.

With these two axes in mind, the matrix categorises organisations into four quadrants:

1. Vertical Supply Chain
2. Service Provider
3. Strategy Shaper
4. Supply Chain Optimisation

We will now explore each of these quadrants in detail, providing actionable insights for businesses aiming to optimise their supply chains.

1. Vertical Supply Chain: Business Unit Optimisation

In the Vertical Supply Chain quadrant, businesses adopt a highly differentiated approach to operations but maintain a standard design. This model is most applicable to companies that operate within a specific business unit, focusing on vertical integration. It is particularly common in industries like FMCG, agriculture, and resources, where supply chain processes are heavily tied to specific business needs.

Characteristics of a Vertical Supply Chain:

• Focuses on optimising individual business units, often prioritising efficiency within specific departments.
• Minimal integration across different business units; operations are siloed but tailored to fit specific needs.
• Typically, these organisations require flexibility in their processes and supply chain strategies to meet industry-specific challenges.

Key Benefits:

• Enhanced flexibility to respond to changes in individual business units.
• Ability to implement industry-specific best practices tailored to operational requirements.
• Streamlined decision-making processes at the business unit level.

How Trace Consultants Can Help:

For businesses operating within a Vertical Supply Chain model, Trace Consultants can assist in enhancing the operational efficiency of each unit by analysing existing workflows, identifying bottlenecks, and implementing process optimisation strategies. We also help businesses explore opportunities for automation and technology integration to streamline operations further, improving responsiveness without sacrificing differentiation.

2. Service Provider: Business Unit Optimisation with Enterprise Shared Services

The Service Provider quadrant represents businesses that focus on optimising their individual business units while integrating shared services at the enterprise level. In this model, the supply chain design remains differentiated, but operations benefit from some level of integration, typically through enterprise-wide services like IT, finance, or human resources.

Characteristics of a Service Provider Supply Chain:

• Combines business unit optimisation with the efficiency of shared enterprise services.
• Greater degree of collaboration and shared infrastructure across business units.
• While the operational model may remain somewhat differentiated, businesses seek to standardise processes where possible to reduce redundancy.

Key Benefits:

• Enhanced operational efficiency by reducing duplication of services across business units.
• Cost savings through shared services, particularly in non-core functions like IT, procurement, or HR.
• Improved collaboration across departments, leading to better overall performance and resource utilisation.

How Trace Consultants Can Help:

Organisations operating in this quadrant can benefit from Trace Consultants' expertise in implementing shared services models, identifying which parts of the supply chain can be centralised for greater efficiency. Our team works closely with businesses to streamline operations without compromising the unique needs of individual business units. We also help assess technology needs, ensuring shared services are supported by integrated digital solutions.

3. Strategy Shaper: Supply Chain Capability Building

In the Strategy Shaper quadrant, businesses focus on building their overall supply chain capabilities. This model features a highly integrated design across the organisation but keeps operations differentiated. Companies that adopt this model typically aim to become industry leaders by continually refining their supply chain processes and enhancing their adaptability to changing market conditions.

Characteristics of a Strategy Shaper Supply Chain:

• Focuses on capability building rather than immediate operational efficiency.
• Differentiated operations allow flexibility and customisation at various levels of the supply chain.
• Often involves long-term investments in supply chain infrastructure, talent, and processes to drive competitive advantage.

Key Benefits:

• Long-term agility and the ability to quickly respond to changes in customer demand or market conditions.
• Continuous improvement in supply chain capabilities, resulting in industry leadership.
• Differentiated operations that allow for more innovative supply chain solutions.

How Trace Consultants Can Help:

Trace Consultants helps businesses operating in the Strategy Shaper quadrant by guiding them through long-term supply chain capability building. We assist with talent development, infrastructure investment, and continuous process improvement, all designed to future-proof your business. Our consultants also help design bespoke supply chain strategies that position your business as an industry leader while maintaining operational flexibility.

4. Supply Chain Optimisation: Integrated Design and Operations

Supply Chain Optimisation represents the most advanced quadrant in the matrix, where businesses have both fully integrated supply chain operations and design. Organisations in this model adopt standardised processes across all business units and invest in supply chain optimisation at every level. Companies that operate in this quadrant often prioritise efficiency, scalability, and cost reduction, using technology to maintain seamless integration.

Characteristics of a Supply Chain Optimisation Model:

• High degree of integration across both design and operations.
• Focus on achieving operational excellence through technology, process automation, and lean methodologies.
• Organisations in this quadrant typically lead in cost-efficiency, scalability, and standardisation.

Key Benefits:

• Significant cost savings through process optimisation and integrated systems.
• Scalability that allows businesses to expand rapidly without major disruptions to supply chain operations.
• Enhanced visibility across the supply chain, leading to better decision-making and risk management.

How Trace Consultants Can Help:

Businesses in the Supply Chain Optimisation quadrant can leverage Trace Consultants’ expertise in technology integration, process optimisation, and lean methodologies. Our team helps organisations implement advanced supply chain solutions, such as Enterprise Resource Planning (ERP) systems, Supply Chain Management (SCM) software, and Artificial Intelligence (AI)-driven analytics to ensure complete operational integration. We also focus on creating a sustainable supply chain strategy that allows for seamless scaling while maintaining cost-efficiency.

Strategic Recommendations for Australian and New Zealand Businesses

As businesses in Australia and New Zealand face increased pressure to optimise their supply chains, understanding the most suitable quadrant of the supply chain matrix is crucial for success. Each quadrant presents unique challenges and opportunities, and the key to effective supply chain management is recognising where your organisation currently stands and where it needs to go.

For example:

• SMEs and start-ups may initially find themselves in the Vertical Supply Chain quadrant, focusing on business unit optimisation. As they scale, transitioning towards Service Provider or Supply Chain Optimisation models could yield long-term benefits.
• Large enterprises looking to maintain their competitive edge may focus on becoming Strategy Shapers, continually refining their supply chain capabilities to adapt to market trends.

Trace Consultants works alongside businesses in every stage of this journey, providing tailored solutions that help organisations move across quadrants as their supply chain needs evolve.

Supply chain organisational design is not a one-size-fits-all solution. By understanding where your business fits within the supply chain matrix, you can adopt the most appropriate strategies to unlock operational efficiencies, reduce costs, and drive growth.

Trace Consultants has extensive experience helping businesses across Australia and New Zealand align their supply chain strategy with their operational goals. Whether your organisation is seeking to optimise individual business units or create an integrated supply chain framework, our expert team is ready to help you take the next step.

Are you ready to optimise your supply chain? Contact Trace Consultants today to start your journey toward operational excellence.

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

Critical Role of Back-of-House (BOH) Logistics in Hospitals, F&B, Hotels, and Entertainment Venues

Back-of-house (BOH) supply chains are the invisible driving force behind many industries, including integrated resorts, food and beverage (F&B), retail, hospitals, and more. While customers rarely see BOH operations, their impact on the efficiency, safety, and profitability of front-end operations is undeniable. Poorly designed infrastructure in BOH areas often leads to inefficiencies, driving up costs and creating unsafe working environments. To avoid these pitfalls, businesses need to assess and address the complexities within their BOH supply chains, enabling long-term benefits such as scalability and adaptability to evolving organisational needs.

Understanding the Complexities of BOH Supply Chains

BOH logistics are complex and vary depending on the industry, yet certain challenges are universal. For example, hospitals need to manage clinical waste and ensure the timely delivery of critical supplies, while F&B businesses must juggle fresh produce management. These complexities require careful planning and consideration to maintain service levels and operational efficiency.

Here are some common complexities that impact BOH supply chains across industries:

Supplier Relationships and Coordination

Strong supplier relationships are essential for resilient supply chains, especially in BOH operations. Managing multiple vendors, ensuring consistent quality, and maintaining reliability are crucial for minimising disruptions. In industries like hospitality, retail, and healthcare, poor coordination can result in delayed deliveries, quality issues, and service bottlenecks, all of which negatively impact customer-facing operations.

Supply Chain Disruptions

External factors such as global pandemics, natural disasters, or geopolitical events can lead to significant disruptions. These disruptions often result in delays, increased costs, and product shortages, affecting inbound deliveries for hotels, hospitals, and entertainment venues. Without well-planned mitigation strategies, these disruptions can severely impact business continuity.

Sustainability Challenges

Sustainability is becoming a higher priority for organisations, adding another layer of complexity to BOH supply chains. The push to reduce carbon footprints, source locally, and minimise waste has implications for supplier selection, inventory management, and transport logistics. For example, hospitals must balance sustainability with regulatory compliance, while F&B and entertainment venues may need to find ways to reduce packaging waste or energy consumption.

Inventory Management

With a wide range of products stored across multiple locations, managing inventory is a critical challenge in BOH operations. Poor inventory management can lead to overstocking, spoilage, or understocking, all of which negatively affect operations. For example, an overstock of perishable goods in a hotel can lead to waste, while understocking clinical supplies in a hospital could endanger patient care.

Inbound Traffic and Congestion

Coordinating deliveries and outbound logistics across different locations can be a logistical nightmare, particularly in large venues like hospitals or resorts. Congested loading docks, traffic issues, and safety hazards can disrupt the flow of goods and cause delays. This is particularly problematic in high-volume environments where delays can lead to poor service outcomes and safety risks.

Demand Forecasting

Accurate demand forecasting is essential in preventing overstock and shortages, particularly during peak seasons or special events. Without reliable forecasting, F&B venues may find themselves with excess inventory, while hospitals may struggle to manage fluctuating demand for essential medical supplies, especially during critical periods.

Compliance and Regulations

BOH supply chains must navigate a myriad of regulatory challenges, from labour laws to environmental regulations. These regulations vary by industry and can impact everything from supplier selection to product handling and transportation. For example, hospitals face strict regulations around the handling of clinical waste, while F&B venues must comply with food safety standards.

The Risks of Ineffective BOH Supply Chains

When BOH logistics and supply chains are not optimised, the consequences can be severe, impacting financial performance, reputation, and even safety. Outdated infrastructure or poorly designed facilities often lead to operational workarounds that create inefficiencies. These inefficiencies are costly, labour-intensive, and can obscure the underlying problems, allowing them to persist.

Some of the risks of inadequate BOH operations include:

1. Storage Capacity Issues: When storage areas reach capacity, inventory management becomes compromised, leading to poor stock quality, increased spoilage, and potential safety hazards.
2. Rising Costs: Inefficiencies in the BOH supply chain often result in higher labour costs, as more staff are needed to manage inventory manually or rectify errors. Additionally, poor inventory practices can lead to wastage and damage, further increasing costs.
3. Reduced Service Levels: Poor BOH operations can slow down the flow of goods and services to the front-end, causing delays in serving customers, whether it's delivering meals in a hotel or ensuring timely care in a hospital.
4. Traffic Congestion: Congested BOH areas create inefficiencies in the movement of goods, impacting both inbound and outbound logistics. This can result in delays that disrupt overall operations, particularly during busy periods.

The Opportunities in Optimising BOH Supply Chains

While BOH supply chains are inherently complex, there are substantial opportunities for organisations to improve their operations through thoughtful design and optimisation. By addressing these complexities, businesses can create scalable, adaptable systems that meet their evolving needs while controlling costs and maintaining service levels.

Some key benefits of optimising BOH supply chains include:

• Scalable Infrastructure: Purpose-built infrastructure allows for flexibility and growth. A well-designed BOH area can support an agile operating model that evolves with the business, ensuring it can handle increases in demand or operational challenges with ease.
• Cost-Effective Operations: Efficient BOH systems reduce the need for manual workarounds, lowering labour costs and improving inventory management. This results in significant savings, especially in industries like healthcare and hospitality, where the cost of inefficiency can be high.
• Improved Service Levels: A streamlined BOH supply chain ensures that the flow of goods and services is uninterrupted, leading to faster turnaround times for customers and higher service satisfaction. This is critical in environments like hospitals or F&B establishments, where service quality directly impacts customer outcomes.
• Enhanced Resilience: By addressing potential disruptions and planning for sustainability, organisations can ensure their BOH operations are resilient, even in the face of challenges like supply chain disruptions or regulatory changes.

Next Steps for Optimising BOH Supply Chains

For organisations looking to address the complexities in their BOH operations, a structured approach is key. The following steps can help organisations begin their journey towards optimised BOH supply chains:

1. Diagnostic Review: Start with a high-level diagnostic of your current BOH operations to identify key issues and opportunities. Understanding the root causes of inefficiencies is essential for determining where improvements can be made.
2. Engage Cross-Functional Teams: Involve stakeholders from various departments to ensure that the entire organisation's needs are considered in the redesign of BOH operations. A cross-functional team will bring valuable insights from different areas of the business.
3. Seek External Expertise: Engaging external consultants like Trace Consultants can provide an objective perspective and bring industry best practices to the table. External experts can help refine the business case for change, identifying the most effective solutions for your specific needs.
4. Develop a Transition Plan: Create a roadmap that outlines short-, medium-, and long-term improvements. This plan should address key areas such as people, processes, technology, and infrastructure, ensuring that all aspects of the BOH supply chain are aligned with the organisation’s goals.
5. Execute and Monitor Progress: Build a dedicated team to execute the transition plan, monitoring progress closely and adjusting as needed. Sharing successes along the way will keep momentum going and ensure organisational buy-in.

How Trace Consultants Can Help

Optimising BOH supply chains requires deep expertise and a tailored approach to each organisation’s unique challenges. At Trace, we specialise in helping organisations across various sectors, including hospitals, F&B, and entertainment venues, improve their BOH logistics and supply chains. Our team offers:

• Comprehensive Diagnostics: We begin by conducting a thorough assessment of your BOH operations, identifying inefficiencies and opportunities for improvement.
• Bespoke Solutions: Using our extensive industry knowledge, we design solutions that address the specific challenges of your organisation, whether it’s reducing costs, improving service levels, or navigating regulatory requirements.
• Cross-Functional Support: Our approach integrates people, processes, and technology to ensure that all aspects of the BOH supply chain are optimised.
• Long-Term Value: We help you develop scalable, future-proofed supply chain solutions that adapt to changes in demand and the broader market environment.

With Trace Consultants by your side, your organisation can transform its BOH operations, delivering cost savings, improved efficiency, and better service outcomes. Contact us today to start your journey toward BOH supply chain optimisation.

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

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Emma Woodberry

Senior Manager

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Prajin Shah

Senior Consultant