During times of economic uncertainty,CFOs will look to key levers in an organisation.
The supply chain has several key levers for CFOs, particularly in uncertain times where operating expenses and working capital must be carefully managed. The figure below highlights ‘key metrics in the mind of a CFO’ and the level of influence a supply chain typically will have on such metrics.
Supply Chain Lever Benefits vs. Implementation Complexity - Balancing supply chains short-term vs. long-term opportunities
In assessing how to deploy resource and capital, CFOs must balance anticipated benefits vs. implementation complexity and costs. The figure below highlights for typical example projects this relative equation.
SPOTLIGHT - Supply Chain and Warehouse Network Optimisation & Design
Allocating capital, deploying assets and positioning inventory well in a supply chain network is critical to delivering the right service at the right cost. Supply chains often evolve organically and for some organisations, become awkward collections of sites, sources and inventory.
Network Design is a strategic review – often at board and c-suite level – where a retailer is seeking to lock in their network footprint, asset profile, infrastructure and capabilities decisions for the future. It clearly pays to get these decisions right and the consequences of getting them wrong often can result in years, if not decades of pain.
Scenario modelling is a practice trace. has strong capabilities in. We are here to assist retailers determine – what is the optimal network for their business? Our approach to network design is detailed in the figure below and has been proven over decades using both our own inhouse developed ‘tactical scenario modelling software’ as well as ‘best breed’ network design technologies’.
Explore the critical attributes of a great supply chain consultant, including their approach to data analysis, insight-led strategies, and examples of cost reduction opportunities across various supply chain components.
In the complex and rapidly evolving world of supply chain management, consultants play a crucial role in guiding businesses through challenges and opportunities. A great supply chain consultant brings a unique blend of skills and expertise that can significantly impact an organisation's efficiency, profitability, and competitive edge. This article explores the essential attributes of a top-tier supply chain consultant, including their approach to fact-based analysis, data-driven insights, and tangible value delivery, with examples of how they can drive substantial cost reductions across various supply chain components.
Core Attributes of an Effective Supply Chain Consultant
Deep Industry Knowledge
Great supply chain consultants possess extensive knowledge of the industry's best practices, trends, and regulatory requirements. They are well-versed in the intricacies of transport, warehousing, manufacturing, and inventory management, enabling them to provide relevant and up-to-date advice.
Fact-Based and Data-Driven Approach
A fact-based, data-driven approach is fundamental in supply chain consulting. These professionals rely on quantitative analysis to understand problems, identify opportunities, and measure performance.
Utilising Data Analysis
They use advanced data analysis tools to dissect supply chain dynamics, forecast trends, and provide insights that help businesses make informed decisions.
Insight-Led Strategies
The best consultants don't just present data; they deliver actionable insights. They translate complex information into strategic recommendations that drive sustained, lasting change.
Providing Tangible Value
Their focus is on creating tangible value for the organisation. This means not only identifying areas for improvement but also implementing solutions that lead to measurable results.
Driving Sustained, Lasting Change
Holistic View of the Supply Chain
Great consultants understand that change in one area of the supply chain can impact the entire system. They take a holistic view, ensuring that improvements are balanced and beneficial across all components.
Change Management Skills
Implementing change is as much about managing people as it is about managing processes. Top consultants are adept at guiding organisations through the transition, addressing concerns, and fostering a culture of continuous improvement.
Identifying and Implementing Cost Reduction Opportunities
Transport Optimisation
Good consultants can significantly reduce transportation costs by optimising route planning, consolidating shipments, and negotiating carrier contracts. They employ advanced logistics software and analytics to identify the most efficient transport methods.
Case Example: Reducing Kilometre Reimbursement
By analysing route efficiency and driver performance, consultants have helped businesses cut down on unnecessary travel, transport provider costs, kilometre reimbursements (for service clients) and fuel costs.
Warehousing Efficiency
Consultants look at various factors in warehousing operations, such as layout, automation, and workforce management, to enhance efficiency and reduce costs.
Case Example: Warehouse Layout Optimisation
By redesigning the warehouse layout and implementing better inventory management practices, consultants have helped organisations reduce waste, improve picking efficiency, and decrease storage costs.
Manufacturing Process Improvements
In manufacturing, consultants focus on streamlining operations, reducing cycle times, and implementing lean manufacturing principles to reduce waste and improve throughput.
Case Example: Lean Manufacturing Implementation
By introducing lean manufacturing techniques, consultants have helped manufacturers significantly reduce waste, improve product quality, and lower production costs.
Inventory Management
Effective inventory management is crucial for reducing costs while maintaining service levels. Consultants use sophisticated forecasting and inventory optimisation tools to balance stock levels, reduce carrying costs, and minimise stockouts.
Case Example: Safety Stock Optimisation
Consultants have assisted businesses in recalibrating their safety stock levels using advanced statistical models, leading to reduced inventory holding costs without compromising product availability.
Leveraging Technology and Innovation
Staying Ahead with Technology
Great supply chain consultants are always on the cutting edge of technology. They understand how to leverage automation, AI, machine learning, and other innovations to enhance supply chain efficiency.
Implementing Customised Solutions
They don't offer one-size-fits-all solutions; instead, they tailor their technology recommendations to fit the specific needs and capabilities of the business.
Building Partnerships and Trust
Long-term Relationship Focus
The best consultants view their role as a long-term partnership, working alongside the business to continuously identify and implement improvements.
Gaining Trust through Results
They gain trust not through promises but through delivering measurable results that positively impact the bottom line.
A great supply chain consultant brings a unique set of skills and attributes that can transform an organisation's supply chain into a strategic asset. With their deep industry knowledge, data-driven approach, insight-led strategies, and focus on tangible value, they can identify and implement substantial cost reductions across transportation, warehousing, manufacturing, and inventory. By staying current with the latest technologies and maintaining a focus on lasting change and continuous improvement, these consultants are invaluable partners in navigating the complex and ever-changing landscape of supply chain management.
Strategy & Design
January 7, 2025
How Five Forces Are Transforming Supply Chain Investment in ANZ
Explore how demographic shifts, AI, geopolitical changes, financial infrastructure evolution, and sustainability demands are shaping ANZ supply chains—and how Trace Consultants can guide your organisation to thrive.
How Five Global Forces Will Shape Supply Chain Investment in ANZ: Insights from Trace Consultants
In today’s rapidly evolving business landscape, CEOs and CFOs across Australia and New Zealand (ANZ) must navigate a supply chain environment shaped by five transformative forces: demographic divergence, digital disruption and AI, geopolitical fragmentation, evolving financial infrastructure, and the transition to a low-carbon economy. These forces are reshaping how organisations design, invest in, and manage their supply chains.
At Trace Consultants, we help businesses navigate these challenges by offering tailored solutions that drive resilience, agility, and sustainability. Our expertise spans supply chain strategy, technology implementation, and operational optimisation, making us a trusted partner in addressing the critical supply chain issues of today and tomorrow.
1. Demographic Divergence: Shifting Consumer and Workforce Dynamics
Demographic changes in ANZ are creating unique challenges for supply chains. An ageing workforce, migration-driven population growth, and evolving consumer preferences necessitate adaptive and innovative strategies.
How Trace Consultants Can Help
Conduct workforce capability assessments to identify skills gaps and opportunities for automation.
Design and implement labour planning tools to optimise staffing levels, improve workforce productivity, and address skills shortages.
Develop data-driven consumer analytics solutions to align supply chains with shifting market demands.
Learn more about our solutions for workforce optimisation.
2. Digital Disruption and AI: The New Era of Intelligent Supply Chains
Digital transformation is unlocking new efficiencies in supply chain operations. From AI-driven forecasting to automation and real-time visibility, organisations adopting digital technologies are gaining a significant competitive edge.
How Trace Consultants Can Help
Deploy advanced planning systems to improve demand forecasting, inventory management, and supply chain visibility.
Implement low-code/no-code solutions, such as Microsoft Power Apps, to streamline workflows, enhance data capture, and improve decision-making.
Strengthen cybersecurity frameworks to safeguard critical supply chain systems.
Discover how our technology solutions can transform your supply chain operations.
3. Geopolitical Fragmentation: Navigating Uncertainty in Global Trade
Geopolitical tensions and shifting trade policies are disrupting global supply chains. ANZ organisations must diversify sourcing strategies, mitigate trade risks, and build resilience into their operations.
How Trace Consultants Can Help
Perform supply chain network reviews to identify vulnerabilities and opportunities for regionalisation.
Design scenario planning frameworks to proactively address geopolitical risks and minimise disruptions.
Develop supplier risk management strategies to ensure continuity and compliance.
Explore how our solutions can help mitigate geopolitical risks in your supply chain.
Innovations in financial infrastructure, from blockchain to sustainable financing mechanisms, are transforming the way supply chains are managed. These changes offer opportunities to improve liquidity, transparency, and alignment with ESG priorities.
How Trace Consultants Can Help
Integrate blockchain-enabled tools for enhanced supply chain transparency and efficiency.
Align financing strategies with sustainability goals, helping organisations leverage green bonds and ESG-focused investments.
Streamline payment processes with digital platforms, reducing costs and improving cash flow management.
Learn more about how our technology solutions can support your financial infrastructure needs.
5. Transition to a Low-Carbon Economy: Sustainability as a Supply Chain Imperative
Sustainability is no longer optional—it is a business imperative. With stricter regulations and growing consumer and investor demand for green practices, ANZ businesses must focus on reducing emissions, optimising energy use, and transitioning to circular economy models.
How Trace Consultants Can Help
Develop and implement net-zero supply chain strategies tailored to your business needs.
Identify and deploy green technologies, including renewable energy solutions and sustainable materials.
Optimise logistics networks to reduce emissions while improving efficiency and service levels.
Find out how we’re helping businesses transition to sustainable supply chains through our solutions.
Why Partner with Trace Consultants?
Trace Consultants combines strategic expertise with innovative technology solutions to help ANZ organisations navigate the complex forces shaping today’s supply chains. Whether addressing demographic shifts, leveraging AI, mitigating geopolitical risks, modernising financial infrastructure, or transitioning to sustainability, we provide the tools, insights, and support needed to stay ahead.
The convergence of demographic divergence, digital disruption and AI, geopolitical fragmentation, evolving financial infrastructure, and the transition to a low-carbon economy is reshaping supply chain investments in ANZ. While these forces present challenges, they also offer opportunities for organisations to innovate and build resilient, sustainable supply chains.
With Trace Consultants as your partner, your organisation can navigate these changes confidently and unlock new levels of agility, efficiency, and competitiveness.
Are you ready to future-proof your supply chain? Let’s start the conversation at traceconsultants.com.au.
Strategy & Design
December 30, 2024
Seven Supply Chain Trends to Watch in 2025
Explore the seven key ANZ supply chain trends shaping 2025, including cost out programs, sustainability, digitalisation, resilience, visibility, workforce optimisation, and collaboration. Discover actionable insights from Trace Consultants to future-proof your supply chain.
As the global economy continues to evolve, businesses across Australia and New Zealand face increasing pressure to adapt their supply chains to a rapidly changing landscape. Trace Consultants, a boutique supply chain and procurement advisory firm based in Australia, is at the forefront of these shifts, helping organisations navigate the complexities of modern supply chain management. Below, we explore seven key supply chain trends poised to shape the industry in 2025 and beyond.
1. Cost Out Programs and Cost to Serve Optimisation
In an increasingly competitive market, reducing costs without compromising service levels is a key focus for organisations. Cost out programs and cost to serve optimisation are essential strategies for achieving this balance, enabling businesses to streamline operations, improve profitability, and enhance customer satisfaction.
Cost out programs involve identifying inefficiencies across the supply chain and implementing targeted initiatives to reduce expenses. Cost to serve optimisation focuses on understanding the true cost of delivering products or services to specific customer segments and making informed decisions to improve margins.
Key Actions for Cost Optimisation:
Conduct spend analysis to identify high-cost areas and opportunities for rationalisation.
Leverage advanced analytics to assess cost-to-serve metrics and prioritise profitable customer segments.
Optimise logistics networks, including warehouse locations and transportation routes, to minimise costs.
Negotiate supplier contracts to achieve better pricing and terms.
Trace Consultants has helped organisations implement effective cost out programs, delivering measurable savings and improved service levels. By combining data-driven insights with practical strategies, we enable businesses to achieve sustainable cost reductions while maintaining operational excellence.
2. Sustainability Takes Centre Stage
Sustainability is no longer a peripheral concern but a core strategic priority for supply chains. With heightened regulations, consumer demand for eco-friendly products, and organisational ESG commitments, businesses are under pressure to reduce their carbon footprints and ensure ethical sourcing practices.
Consumers and regulatory bodies alike are holding companies accountable for their environmental impact, making sustainability an integral part of business strategy. Supply chains are key enablers of these efforts, as they represent significant opportunities for reducing greenhouse gas emissions and improving resource efficiency. Organisations that fail to prioritise sustainability risk falling behind competitors and alienating stakeholders.
Opportunities for Action:
Implement circular economy principles, such as recycling and reusing materials to minimise waste.
Conduct sustainability benchmarking to identify areas of improvement and measure progress against industry standards.
Leverage technology to track and report on Scope 3 emissions, which include indirect emissions from supply chain activities.
Trace Consultants has supported organisations in adopting sustainable supply chain practices, unlocking both environmental benefits and competitive advantages. By combining strategic insight with practical solutions, we help businesses meet their sustainability goals while improving operational efficiency.
3. Digitalisation and Automation Acceleration
The push toward digitalisation and automation continues to redefine supply chain operations. Advanced technologies such as artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) are driving efficiencies and improving decision-making capabilities.
Organisations are investing in digital solutions to enhance agility, reduce costs, and improve service levels. The ability to quickly adapt to changing conditions and make data-driven decisions is becoming a competitive differentiator in the supply chain sector.
Emerging Technologies to Watch:
Low-code/no-code platforms for workflow automation, enabling businesses to streamline processes without heavy IT involvement.
AI-powered demand planning and forecasting tools to enhance accuracy and responsiveness.
Robotics and automated guided vehicles (AGVs) in warehousing to optimise inventory management and reduce labour costs.
Trace Consultants has delivered significant results for clients by deploying Microsoft Power Apps-based solutions and Smart Excel tools, helping organisations achieve immediate operational improvements. These technologies enable clients to automate manual tasks, reduce errors, and improve productivity across supply chain functions.
4. Resilience in the Face of Disruption
The frequency and scale of supply chain disruptions continue to grow, driven by factors such as geopolitical tensions, natural disasters, and cyber threats. Resilient supply chains are now a necessity rather than a luxury. Businesses that fail to anticipate and respond to disruptions risk significant financial and reputational damage.
Building resilience involves not only mitigating risks but also creating systems that can recover quickly and adapt to new challenges. This requires a proactive approach to supply chain design and management.
Key Resilience Strategies:
Diversify supplier bases to mitigate risks associated with over-reliance on specific regions or vendors.
Build buffer inventories and safety stocks to cushion against supply shocks.
Invest in real-time visibility tools to anticipate disruptions and respond swiftly.
Trace Consultants specialises in supply chain risk management, helping businesses design robust systems that withstand external shocks. Our comprehensive approach includes scenario planning, risk assessment, and the implementation of resilience-enhancing technologies.
5. End-to-End Supply Chain Visibility
End-to-end visibility is critical for optimising supply chain performance and ensuring compliance. Modern businesses demand transparency from procurement through to last-mile delivery, enabling faster and smarter decision-making.
Visibility tools allow organisations to monitor the flow of goods and information across the supply chain, identify bottlenecks, and implement corrective actions in real time. This level of transparency is essential for meeting customer expectations and achieving operational excellence.
Steps to Achieve Visibility:
Integrate advanced planning systems to connect upstream and downstream activities.
Use IoT-enabled sensors to track goods in transit and monitor environmental conditions.
Implement dashboards for real-time reporting and analytics, providing stakeholders with actionable insights.
Trace Consultants assists clients in deploying visibility tools that enhance connectivity and improve operational outcomes. By leveraging cutting-edge technology, we help businesses gain a competitive edge through improved efficiency and responsiveness.
6. Labour Challenges and Workforce Optimisation
Labour shortages and rising wage pressures are pushing organisations to rethink workforce strategies. Optimising workforce planning, scheduling, and productivity is more critical than ever. Businesses must balance the need for cost control with the imperative to maintain high levels of service.
The COVID-19 pandemic has underscored the importance of having a flexible and resilient workforce. As labour markets evolve, organisations must adopt innovative approaches to workforce management to stay competitive.
Workforce Optimisation Tactics:
Use AI and ML for accurate demand forecasting, ensuring the right staffing levels across operations.
Optimise workforce composition by balancing full-time, part-time, and contingent labour to meet fluctuating demand.
Invest in employee upskilling and training programs to enhance workforce capabilities and reduce turnover.
Trace Consultants leverages its expertise in workforce planning and scheduling to help organisations address these challenges while driving cost efficiency and service excellence. Our tailored solutions enable businesses to align workforce strategies with broader organisational goals.
7. Collaborative Ecosystems and Partnerships
The complexity of modern supply chains necessitates collaboration across stakeholders. Building strong partnerships with suppliers, logistics providers, and even competitors can unlock shared value and drive innovation.
Collaboration enables organisations to pool resources, share risks, and improve supply chain performance. It also fosters a culture of trust and transparency, which is essential for navigating today’s dynamic business environment.
Best Practices for Collaboration:
Develop joint KPIs and performance metrics to align objectives and measure success.
Share data securely to improve forecasting, demand planning, and inventory management.
Engage in collaborative planning, forecasting, and replenishment (CPFR) initiatives to synchronise activities across the supply chain.
Trace Consultants has a proven track record of fostering collaborative ecosystems, enabling clients to create more agile and interconnected supply chains. Our approach focuses on building long-term relationships that deliver mutual benefits for all stakeholders.
Preparing for the Future
The supply chain landscape in 2025 will be defined by cost efficiency, sustainability, technology, resilience, visibility, workforce optimisation, and collaboration. Organisations that proactively embrace these trends will not only stay ahead of the curve but also drive meaningful value for their stakeholders.
Trace Consultants, as a trusted advisor, is uniquely positioned to help businesses navigate these changes. By combining deep industry expertise with innovative solutions, we empower organisations to build supply chains that are resilient, efficient, and future-ready. How prepared is your organisation for the supply chain of 2025? Let Trace Consultants guide you through these transformative trends and ensure your success in an ever-evolving marketplace.
