Supply Chain Investments in 2025: Strategies for FMCG and Manufacturing Success in ANZ

January 9, 2025

Supply Chain Investments in 2025: Unlocking Competitive Advantage for FMCG and Manufacturing Organisations in ANZ

In 2025, the supply chain landscape for Fast-Moving Consumer Goods (FMCG) and Manufacturing (MFG) organisations in Australia and New Zealand (ANZ) is evolving rapidly. As businesses grapple with economic pressures, rising customer expectations, and the pursuit of sustainability, supply chain investments are emerging as a cornerstone for operational excellence and competitive advantage.

This article explores the key areas where FMCG and MFG organisations in ANZ should focus their supply chain investments in 2025 to drive efficiency, resilience, and growth.

1. Digital Transformation and Technology Adoption

Embracing Advanced Planning Systems (APS)

Advanced Planning Systems are becoming essential for forecasting, inventory optimisation, and supply planning. In 2025, organisations that invest in APS will benefit from improved demand visibility, reduced stockouts, and streamlined operations.

For FMCG companies, APS can synchronise production schedules with retailer demand, reducing excess inventory and enhancing customer satisfaction. Similarly, manufacturing firms can leverage APS to optimise their production schedules, manage raw material inventories, and adapt to changing market demands. Furthermore, these solutions enable better scenario planning, helping organisations quickly respond to disruptions or shifts in consumer trends, ensuring agility in the supply chain.

Low-Code/No-Code Solutions

The rise of low-code/no-code platforms, such as Microsoft Power Platform, allows organisations to automate workflows, enhance data capture, and enable structured reporting without significant IT overheads. These solutions offer flexibility and scalability, particularly for mid-sized organisations looking to modernise their supply chain capabilities cost-effectively.

Examples include:

  • Automating order management processes.
  • Enhancing workforce scheduling through predictive analytics.
  • Implementing mobile applications for real-time inventory tracking.

2. Sustainability Initiatives

Transitioning to Circular Supply Chains

Sustainability remains a top priority for ANZ organisations. Investing in circular supply chains, where products and materials are reused or recycled, helps companies reduce waste, cut costs, and align with regulatory requirements.

For instance, FMCG organisations are adopting biodegradable packaging and sustainable sourcing practices, while manufacturers are reusing materials and reducing energy consumption in production processes.

Carbon Tracking and Reporting

With increasing scrutiny on Scope 3 emissions, supply chain investments in carbon tracking tools and systems are crucial. These tools provide real-time insights into carbon footprints, enabling organisations to make informed decisions to reduce their environmental impact.

3. Supply Chain Resilience

Diversification of Supply Networks

Recent global disruptions have highlighted the importance of supply chain resilience. In 2025, FMCG and MFG companies are diversifying supplier bases and nearshoring production to mitigate risks associated with over-reliance on a single geography or supplier.

Investing in Inventory Buffers

While lean inventory strategies dominated pre-pandemic supply chains, many organisations are now investing in strategic inventory buffers to absorb shocks during supply disruptions. Advanced inventory management systems help balance the need for resilience with cost efficiency.

4. Workforce and Operational Excellence

Workforce Planning and Automation

Labour shortages and rising wage pressures are prompting investments in workforce optimisation tools. Predictive analytics and workforce scheduling platforms ensure the right talent is deployed at the right time, enhancing productivity while managing costs.

In manufacturing, automation of repetitive tasks through robotics and IoT-enabled machinery is a growing trend. FMCG organisations, particularly in warehousing and distribution, are adopting automated guided vehicles (AGVs) and robotic picking systems to increase throughput and reduce manual handling errors.

Training and Upskilling

The shift toward digital supply chains requires upskilled talent. Organisations are investing in training programs to equip employees with the skills to operate advanced technologies and interpret complex data sets.

5. Warehouse and Transport Optimisation

Warehouse Network Design

The rising demand for faster delivery times is driving investments in strategically located warehouses. ANZ organisations are leveraging network optimisation tools to identify ideal warehouse locations that balance proximity to customers with cost efficiency. This includes assessing customer distribution patterns, transport costs, and warehouse capacity to create a network that supports both operational and financial objectives.

Transport Management Systems (TMS)

Transport optimisation remains a critical investment area. Advanced TMS platforms enable real-time tracking, route optimisation, and improved carrier performance management. For FMCG businesses with perishable goods, TMS ensures temperature-controlled logistics meet stringent quality standards.

6. Network Optimisation

Network optimisation remains a pivotal focus area for organisations aiming to streamline operations and reduce costs in 2025. By analysing and redesigning supply chain networks, FMCG and MFG companies can unlock efficiencies in warehouse locations, transport routes, and inventory flows. Investments in network optimisation tools enable organisations to model various scenarios, test potential changes, and implement configurations that align with strategic business goals. This is particularly vital for companies dealing with fluctuating demand and rising transportation costs across the ANZ region.

7. 3PL Partner Review

For many FMCG and MFG organisations, third-party logistics (3PL) providers play a critical role in managing warehousing and transport operations. Conducting a comprehensive 3PL partner review is a key investment area in 2025. This involves evaluating existing partnerships for alignment with performance expectations, cost efficiency, and technological capabilities. Organisations are increasingly seeking 3PL providers who offer value-added services such as real-time tracking, data analytics, and sustainability initiatives. A structured review process ensures that supply chain partners are equipped to meet evolving business needs and deliver long-term value.

8. Sales and Operations Planning (S&OP) and Integrated Business Planning (IBP)

Investment in Sales and Operations Planning (S&OP) and Integrated Business Planning (IBP) frameworks is transforming how FMCG and MFG organisations align their strategic, operational, and financial goals. These planning processes ensure seamless coordination across sales, production, and supply chain functions, providing a unified view of demand and supply. By integrating data from across the organisation, IBP enables businesses to create robust, scenario-based plans that account for market volatility, ensuring faster decision-making and enhanced profitability. Organisations that excel in S&OP and IBP often report improved forecast accuracy, reduced working capital, and increased service levels, making these frameworks essential for 2025.

9. Enhanced Data Analytics and AI

Predictive and Prescriptive Analytics

Data-driven decision-making is at the core of modern supply chains. Investments in predictive and prescriptive analytics empower organisations to anticipate demand fluctuations, optimise procurement, and respond proactively to disruptions.

For manufacturers, predictive analytics can forecast equipment maintenance needs, reducing downtime and extending asset lifecycles. FMCG organisations can leverage these tools for consumer trend analysis and demand forecasting.

AI-Driven Insights

Artificial intelligence (AI) is revolutionising supply chain operations. AI algorithms optimise production schedules, identify cost-saving opportunities, and enhance customer service by providing personalised experiences.

Strategic Investments for a Transformative 2025

Supply chain investments in 2025 are not just about addressing current challenges but also about building a future-ready supply chain that drives growth and resilience. For FMCG and MFG organisations in ANZ, these investments span technology, sustainability, workforce optimisation, and risk management.

Organisations that strategically invest in their supply chains today will be well-positioned to navigate future uncertainties and maintain a competitive edge. Are your supply chain investments keeping pace with the demands of 2025? If not, it’s time to act.

How Trace Consultants Help FMCG and Manufacturing Organisations in ANZ

At Trace Consultants, we specialise in supporting FMCG and manufacturing organisations in Australia and New Zealand to optimise their supply chains and achieve operational excellence. Our expertise, combined with a deep understanding of technology and sector-specific challenges, allows us to deliver tailored solutions that drive efficiency, sustainability, and growth. Below, we outline how Trace Consultants can support your organisation, referencing our website for more details.

1. Comprehensive Supply Chain Strategy and Network Optimisation

Trace Consultants excel at helping organisations design and implement effective supply chain strategies that align with their business objectives. Leveraging advanced network optimisation techniques, we assist FMCG and manufacturing clients in identifying the ideal distribution centre locations, transport routes, and inventory flows to balance service levels and cost efficiencies. Our insights ensure that organisations can respond swiftly to fluctuating demand and market dynamics, as detailed on our FMCG and Manufacturing page.

2. Technology-Driven Solutions for Supply Chain Transformation

We believe in the power of technology to transform supply chains. Our team has extensive experience deploying advanced planning systems, low-code/no-code platforms, and custom solutions using tools like Microsoft Power Apps. These solutions automate workflows, enhance data visibility, and improve decision-making, allowing organisations to stay ahead of the competition. Learn more about how we utilise technology to enable smarter supply chains on our Technology page.

3. Expertise in Sustainability and Risk Management

As sustainability becomes a critical focus for FMCG and manufacturing organisations, Trace Consultants provide strategies to reduce environmental impact across the supply chain. From carbon tracking tools to circular supply chain models, we ensure businesses can meet regulatory requirements and consumer expectations. We also support organisations in managing supply chain risks by building resilience through diversified supplier networks and robust operational frameworks.

4. Tailored Workforce Planning and Operational Excellence

The right workforce strategies are essential for supply chain success. Trace Consultants help organisations improve workforce planning, forecasting, and scheduling processes. Drawing from experience across industries, we optimise workforce composition and operational efficiency, enabling businesses to manage labour costs effectively while maintaining high service standards.

5. Sector-Specific Expertise and Collaborative Approach

Our consultants bring extensive industry experience and work collaboratively with your team to address specific supply chain challenges. Whether you’re looking to improve demand forecasting, optimise procurement processes, or enhance warehouse operations, our tailored solutions deliver measurable results. Get to know our dedicated team of experts on the Our Team page.

Why Choose Trace Consultants?

Trace Consultants is a trusted partner for supply chain transformation in ANZ. With a strong track record in the FMCG and manufacturing sectors, we provide actionable insights and hands-on support to help organisations navigate complex challenges. Explore how we can help your business thrive by visiting Trace Consultants. Let us assist you in unlocking the full potential of your supply chain.

Related Insights