How Australian Retailers are Tackling Supply Chain Challenges of Online Returns

April 11, 2023

Strategies to Streamline the Returns Process

In recent years, the growth of online shopping has transformed the retail landscape in Australia. As e-commerce continues to expand, the issue of online returns has emerged as a significant challenge for retailers. According to a report by Australia Post, online purchases grew by 57% in 2020, with return rates ranging from 10% to 40% depending on the retail category. The increasing volume of returns is placing pressure on supply chains and presenting logistical hurdles. This blog article explores how Australian retailers are meeting these challenges with innovative solutions to provide a seamless customer experience while optimising their supply chains.

Centralised Return Hubs

Leading Australian retailers such as Myer and David Jones have implemented centralised return hubs to streamline the returns process. These hubs serve as a single location for receiving and processing all online returns, enabling retailers to manage returns more efficiently. By consolidating returned items, retailers can quickly process refunds and restock items, reducing the burden on their supply chains. The trade-off is often reponsiveness and requiring sufficient volumes to justify a centralised investment in asset, infrastructure and capabilities.

Improved Return Policies

Some retailers are revisiting their return policies to better accommodate online shoppers. For example, The Iconic, an Australian online fashion retailer, offers a generous 30-day return policy, giving customers ample time to try on and return items they don't want to keep. This approach fosters customer loyalty and encourages repeat purchases while also reducing the volume of returns that need to be processed at once.

Harnessing the Power of Microsoft Power Apps for Returns Processing

Some retailers are turning to custom software solutions to support accurate and consistent returns. Microsoft Power Apps is a low-code platform that allows businesses to create custom applications tailored to their specific needs. By leveraging Power Apps, retailers can develop returns processing tools that streamline the process and reduce manual errors.

For example, a retailer could create a Power Apps-based returns management system that allows employees to scan returned items using a barcode scanner, instantly updating inventory levels and triggering any necessary refunds or exchanges. The app could also automatically generate shipping labels for items that need to be sent back to distribution centres, further streamlining the process.

Integrating the Power Apps tool with the retailer's existing CRM and inventory management systems ensures seamless data flow and allows for real-time tracking of returns data. By automating and optimising the returns process, retailers can reduce operational costs, improve customer satisfaction, and better manage their supply chains.

In-Store Returns and Partner Store Returns

Bricks-and-mortar stores are adapting to the growing trend of online shopping by offering in-store returns for online purchases. Retailers such as JB Hi-Fi and Harvey Norman allow customers to return online purchases at their physical stores, providing a convenient option for those who prefer not to ship items back. This strategy also helps retailers manage returns more efficiently by reducing shipping costs and the overall impact on their supply chains.

Investing in Reverse Logistics and Identifying Partnerships

To better handle the influx of online returns, many Australian retailers are investing in reverse logistics systems. Reverse logistics involves managing returned items and moving them through the supply chain for resale, recycling, or disposal. Companies like Toll and Australia Post are offering tailored reverse logistics solutions for retailers, allowing them to optimise their supply chains and minimise the cost and environmental impact of returns.

Benefits of Streamlined Returns Management

Implementing the strategies outlined above can lead to numerous benefits for retailers in terms of service, inventory health, working capital improvement, and cost reduction:

  • Enhanced customer service: Providing a seamless and efficient returns process can lead to increased customer satisfaction and loyalty.
  • Improved inventory health: Effective returns management helps retailers maintain accurate inventory levels and ensures that returned items are quickly restocked or repurposed, reducing the risk of stock obsolescence.
  • Working capital improvement: Streamlining the returns process allows retailers to recover funds from returned items more quickly and optimise cash flow.
  • Cost reduction: Efficient returns management can reduce operational costs, such as shipping and handling, as well as minimise losses due to damaged or unsellable returned items.

As online shopping continues to dominate the retail landscape in Australia, retailers are finding innovative ways to address the challenges of returns. By streamlining processes, embracing technology, and investing in reverse logistics, Australian retailers are not only optimising their supply chains but also enhancing the customer experience. Harnessing the power of Microsoft Power Apps to develop custom returns processing tools is just one example of how retailers are adapting and evolving to meet the changing needs of their customers. The future of retail depends on their ability to adapt and evolve, and these strategies demonstrate their commitment to meeting the changing needs of their customers while reaping the benefits of improved service, inventory health, working capital, and cost reduction.

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

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Technology
November 18, 2024

Enhancing Supply Chain Management with Low-Code Technologies with Trace

Learn how low-code platforms empower businesses to streamline supply chain operations with custom apps that integrate IoT, enable real-time data visualisation, and drive operational efficiency. Explore case studies and benefits with Trace Consultants.

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

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.

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:

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.

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.

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.

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.

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:

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.

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.

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.

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.

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.

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:

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.

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.

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.

Benefits of Partnering with Trace Consultants

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.

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.

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.

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.

Mathew Tolley

Partner

Technology
December 29, 2023

Supply Chain Management and Warehouse Management Systems

The ascent of online retail has intensified market competition and heightened customer expectations concerning the availability of products and responsiveness of delivery. As e-commerce continues to surge in today's market, supply chain strategies have turned into a critical component for most businesses. In this context, possessing an inventory system tailored to your needs creates a competitive edge.

The ascent of online retail has intensified market competition and heightened customer expectations concerning the availability of products and responsiveness of delivery. As e-commerce continues to surge in today's market, supply chain strategies have turned into a critical component for most businesses. In this context, possessing an inventory system tailored to your needs creates a competitive edge.

A robust Warehouse Management System (WMS) is at the core of an efficient supply chain. A WMS can enhance your business' efficiency, precision, and flexibility in addressing the ever-evolving market demands. These systems optimise various operations, ultimately improving overall performance and curtailing costs.

Recognising the distinctive needs of each business, trace. offers customised consultancy solutions in warehouse management and other aspects of business operations. We tailor plans, processes and policies to ensure your supply chain system transforms into a strategic asset, propelling continuous corporate growth.

What is supply chain management?

Supply Chain Management (SCM) entails a product's entire lifecycle, from acquiring raw materials to manufacturing, distributing, and delivering the product to the consumer. It covers the comprehensive planning and adept management of all procurement, conversion, and logistical operations.

SCM is crucial to businesses as it directly influences operational efficiency, cost-efficiency, and customer satisfaction. A proficient SCM system guarantees the punctual production and delivery of goods, streamlines inventory management, limits expenses, and rapid response to market changes. Overall, it enhances the company's competitive edge and profitability.

The Phases of Supply Chain Management

Each phase of supply chain management is critical to the overall success of the process. Here's a basic outline of what most companies undergo:

  1. Design: This initial phase involves strategising the supply chain layout, structures and configuration of key assets and infrastructure. 
  2. Planning: Demand planning and forecasting allows businesses to review at a strategic level scenarios to inform key decisions as well as operational elements such as planning to inform inventory replenishment. Businesses forecast demand, assess resources, and effectively plan procurement to balance supply with demand.
  3. Sourcing: Companies select suppliers for raw materials or goods. It includes negotiating contracts, setting quality standards, and managing supplier relationships.
  4. Production: This phase covers the actual manufacturing of products, including scheduling, assembly, and quality control. Efficient production management ensures products meet quality standards and schedules.
  5. Distribution: After production, goods are distributed to their destinations. This phase includes order fulfilment, warehousing, and transportation, ensuring timely and efficient delivery to customers.
  6. Returns: Often overlooked, this phase manages the return of defective or unwanted products. Effective returns management is crucial for maintaining customer satisfaction and optimising inventory levels.

Key Components of an Effective Supply Chain

The picture of a successful supply chain may vary per company. However, they share standard components, such as:

  • Network Design: A well-designed supply chain network can significantly improve operating costs and service capabilities. Efficient Logistics: The ability to transport goods swiftly and effectively.
  • Optimal Inventory Management: Maintaining the right stock balance to meet demand without excess.
  • Strong Supplier Relationships: Building and maintaining good relationships with suppliers for reliable sourcing.
  • Accurate Forecasting: Accurately predicting customer demand to avoid overproduction or shortages.
  • Responsive Customer Service: Ensuring customer satisfaction through effective communication and service.

trace. specialises in helping businesses optimise these key supply chain components. By assessing your company's specific needs, trace. can develop tailored strategies to enhance logistics, inventory management, supplier relations, demand forecasting, and customer service. Partner with trace. To transform your supply chain into a streamlined, efficient, and customer-centric operation.

Best Practices in Supply Chain Management

There is no one-size-fits-all formula for perfect supply chain management. Each company must develop a strategy tailored to its unique circumstances. The key lies in understanding your specific needs and challenges. Then, craft a supply chain strategy that addresses them.

Here are universally recognised best practices in supply chain management:

  • Adopting Technology: Utilising advanced technologies like automated systems and AI for better visibility and efficiency in the supply chain.
  • Sustainability: Incorporating environmentally friendly practices and considering long-term ecological impacts.
  • Continuous Improvement: Regularly assess and refine supply chain processes for optimal performance.
  • Lean Practices: Adopting lean methodologies to eliminate waste and improve efficiency in supply chain processes.
  • Customer-Centric Approach: Focusing on customer needs and feedback to refine supply chain strategies, ensuring high levels of customer satisfaction and loyalty.
  • Global Sourcing: Exploring and leveraging global sourcing opportunities to reduce costs and enhance product quality.

trace. understands the importance of a customised approach to supply chain management. We work closely with you to identify the most effective strategies for your business, implementing solutions that match your specific needs and goals. Our expertise lies in developing a supply chain management plan that positions you for future success and growth.

Improving Supply Chain Management with Warehouse Management Systems

As highlighted earlier, incorporating modern technology in supply chain management bolsters corporate success. Tools like warehouse management systems are invaluable in enhancing the capabilities of professional teams across various industries.

What role does a warehouse play in supply chain management?

For many companies, a properly managed warehouse is essential for creating a dependable supply chain flow. A well-organised warehouse ensures that goods are stored, retrieved, and dispatched efficiently, which is vital for maintaining a smooth supply chain. Adapting a warehouse management system as a digital solution is highly practical to enhance this efficiency. This technology aligns warehouse activities with broader supply chain goals.

Using an effective warehouse management system (WMS) offers numerous benefits: 

  1. It improves inventory visibility and accuracy, which is essential for real-time decision-making. 
  2. It optimises storage space and organisation, leading to faster retrieval and dispatch times. 
  3. It enhances labour productivity by guiding workers to the exact location of items. 
  4. It facilitates better tracking and management of shipments, improving delivery reliability.
  5. It reduces operational errors, cutting down costs.
  6. It integrates seamlessly with other supply chain management tools, creating a cohesive and efficient supply chain network.

Our Warehouse Management Solutions for Supply Chains

A good understanding of warehouse management and supply chains is valuable, but having the support of experts can take your operations to the next level. Our consultancy services at trace. helps you identify and make the right decisions for your business.

When it comes to incorporating warehouse management into your supply chain, our approach is comprehensive. We start by identifying areas of inefficiency and opportunity to recommend process and system improvements. We help your business define your functional requirements and with system selection. We are experienced across several market-available solutions and can help with implementation of systems and new processes.  

We'll help you establish key performance indicators and implement a tracking system to ensure your supply chain operates as intended. In addition, our team will guide you in complying with local, national, and international regulations to avoid potential penalties and disruptions. 

Revolutionise Your Business Operations with trace.

trace. implements modern solutions like warehouse management systems to elevate your business. We will collaborate closely to determine the best approach for your needs, providing support through every step of the process. 

Partner with trace. to transform your supply chain and achieve operational excellence. Contact us today for a consultation.

Technology
September 2, 2024

Overcoming Supply Chain Challenges: Optimising Performance and Embracing Digital Transformation

This article delves into the challenges of optimising supply chain performance, highlighting the importance of technology, network design, and digital transformation to stay competitive and resilient.

Overcoming Supply Chain Challenges: Optimising Performance and Embracing Digital Transformation

In today’s fast-paced and increasingly complex global marketplace, optimising end-to-end supply chain performance is critical for organisations looking to maintain a competitive edge. The supply chain is no longer just a cost centre but a strategic asset that can drive significant value creation. However, achieving optimal performance across the supply chain presents numerous challenges that organisations must navigate. These challenges range from sensing and quickly responding to demand changes and supply disruptions, reducing working capital without compromising service levels, and designing an optimal supply chain network, to improving logistics safety, efficiency, and sustainability, enhancing visibility and connectivity among transport providers, and transitioning to digitally enabled supply chain models.

In this article, we explore these challenges and discuss how organisations can address them through strategic initiatives and the adoption of advanced technologies.

1. Sensing and Quickly Responding to Demand Changes and Supply Disruptions Through Technology

One of the most pressing challenges in supply chain management is the ability to sense and respond to changes in demand and disruptions in supply chains. These disruptions can be caused by a wide range of factors, including natural disasters, geopolitical instability, pandemics, and more. The COVID-19 pandemic, for example, highlighted the vulnerabilities of global supply chains and underscored the importance of agility and resilience.

To effectively sense and respond to these changes, organisations must leverage advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT). These technologies enable real-time data collection and analysis, allowing companies to monitor demand patterns, predict potential disruptions, and make data-driven decisions quickly. For instance, AI-powered demand sensing tools can analyse vast amounts of data from various sources, including market trends, social media, and historical sales data, to provide accurate demand forecasts. This helps organisations to adjust their production schedules, inventory levels, and distribution plans proactively.

Moreover, cloud-based platforms that integrate supply chain data from multiple sources offer end-to-end visibility, enabling organisations to identify and respond to disruptions as they occur. These platforms facilitate collaboration across the supply chain, allowing stakeholders to share information and coordinate responses effectively.

2. Reducing Working Capital Whilst Preserving Supply Performance and Service Levels

Working capital management is a critical component of supply chain optimisation. Organisations need to strike a delicate balance between reducing inventory levels to free up cash and ensuring that supply performance and service levels are not compromised. Excessive inventory can tie up significant amounts of capital, while insufficient inventory can lead to stockouts, lost sales, and dissatisfied customers.

To optimise working capital, organisations should adopt strategies such as just-in-time (JIT) inventory management, demand-driven supply planning, and supplier collaboration. JIT inventory management involves aligning production schedules with customer demand to minimise inventory levels. This approach reduces carrying costs and frees up capital that can be invested elsewhere in the business.

Demand-driven supply planning, on the other hand, focuses on using real-time demand signals to drive production and replenishment decisions. By closely aligning supply with demand, organisations can reduce the risk of overproduction and excess inventory. Advanced planning systems that incorporate AI and ML can further enhance demand-driven planning by providing more accurate forecasts and optimising replenishment schedules.

Collaboration with suppliers is also essential for reducing working capital. By sharing demand forecasts and inventory data with suppliers, organisations can improve lead times and reduce the need for safety stock. Supplier performance management tools can help track and improve supplier reliability, further reducing the need for excess inventory.

3. Designing the Optimal Supply Chain Network

The design of a supply chain network has a significant impact on its overall performance. An optimal network design ensures that products are delivered to customers in the most efficient and cost-effective manner while meeting service level requirements. This involves determining the ideal locations for manufacturing facilities, distribution centres, and warehouses, as well as optimising transportation routes.

Network design is a complex task that requires consideration of multiple factors, including customer demand patterns, transportation costs, lead times, and the availability of infrastructure. Advanced modelling and simulation tools can help organisations evaluate different network design scenarios and identify the most efficient configuration.

In addition to optimising the physical layout of the supply chain network, organisations should also consider the role of technology in network design. For example, the adoption of digital twins—virtual replicas of physical supply chain assets—can provide valuable insights into the performance of different network configurations. These digital models allow organisations to simulate various scenarios, such as changes in demand or supply disruptions, and assess their impact on the network.

Transportation network optimisation is another critical aspect of supply chain design. By optimising transportation routes and consolidating shipments, organisations can reduce transportation costs and improve delivery times. Transportation management systems (TMS) that incorporate AI and ML can analyse vast amounts of data to identify the most efficient routes and modes of transportation.

4. Improving Safety, Efficiency, and Sustainability in Logistics Operations

Logistics operations are at the heart of the supply chain, and improving their safety, efficiency, and sustainability is crucial for overall supply chain performance. Safety is a top priority in logistics, as accidents and injuries can lead to significant disruptions and financial losses. Efficiency is also critical, as logistics operations that are not optimised can result in delays, increased costs, and reduced customer satisfaction. Sustainability has become increasingly important as organisations seek to reduce their environmental impact and meet regulatory requirements.

To improve safety in logistics operations, organisations should invest in technologies such as automated material handling systems, real-time monitoring, and predictive maintenance. These technologies can help reduce the risk of accidents by automating hazardous tasks and providing real-time visibility into the condition of equipment and infrastructure.

Efficiency in logistics can be enhanced through the adoption of lean principles and continuous improvement methodologies. Lean logistics focuses on eliminating waste and improving the flow of goods and information throughout the supply chain. This can be achieved through process standardisation, the use of cross-docking techniques, and the optimisation of warehouse layouts.

Sustainability in logistics operations can be addressed by adopting green logistics practices, such as using energy-efficient vehicles, optimising transportation routes to reduce fuel consumption, and implementing recycling and waste reduction programs. Organisations can also reduce their carbon footprint by using renewable energy sources in their logistics facilities and adopting sustainable packaging materials.

5. Improving Visibility and Connectivity of Transport Providers

Visibility and connectivity are critical components of an efficient and responsive supply chain. Without real-time visibility into the status of shipments, organisations may struggle to manage their logistics operations effectively, leading to delays, increased costs, and dissatisfied customers. Connectivity among transport providers is also essential for ensuring seamless communication and coordination throughout the supply chain.

To improve visibility, organisations should invest in technologies such as IoT sensors, GPS tracking, and blockchain. IoT sensors can be attached to shipments to provide real-time data on their location, temperature, and condition. This data can be transmitted to a central platform, where it is analysed to provide insights into the status of shipments and identify potential issues.

GPS tracking systems enable organisations to monitor the movement of their vehicles and optimise routes in real-time. This not only improves delivery times but also reduces fuel consumption and transportation costs. Blockchain technology can enhance visibility and security by providing a tamper-proof record of all transactions and movements within the supply chain.

Improving connectivity among transport providers requires the adoption of digital platforms that facilitate collaboration and information sharing. These platforms can integrate data from multiple transport providers, allowing organisations to manage their logistics operations more effectively. For example, a transportation management system (TMS) can provide real-time visibility into the status of shipments across multiple carriers and enable organisations to coordinate deliveries more efficiently.

6. Transitioning and Transforming to Digitally Enabled Supply Chain Operating Models

The transition to digitally enabled supply chain operating models is no longer an option but a necessity for organisations seeking to remain competitive in the modern marketplace. Digital transformation involves the integration of digital technologies into all aspects of the supply chain, from procurement and production to distribution and customer service.

One of the key benefits of digital transformation is the ability to make data-driven decisions. By collecting and analysing data from across the supply chain, organisations can gain insights into their operations and identify areas for improvement. For example, data analytics can be used to optimise inventory levels, reduce lead times, and improve demand forecasting.

Digital transformation also enables greater agility and flexibility in the supply chain. Cloud-based platforms and digital tools allow organisations to quickly adapt to changes in demand or supply conditions, ensuring that they can respond to disruptions and maintain service levels.

However, transitioning to a digitally enabled supply chain operating model is not without its challenges. Organisations must invest in the right technologies, develop the necessary skills and capabilities, and manage the cultural and organisational changes that come with digital transformation. This requires a clear strategy and roadmap for digital adoption, as well as strong leadership and governance.

Optimising end-to-end supply chain performance is a complex and multifaceted challenge that requires a strategic approach and the adoption of advanced technologies. By addressing the key challenges of sensing and responding to demand changes, reducing working capital, designing optimal supply chain networks, improving logistics safety, efficiency, and sustainability, enhancing visibility and connectivity among transport providers, and transitioning to digitally enabled operating models, organisations can achieve significant improvements in supply chain performance.

These improvements not only enhance operational efficiency and reduce costs but also enable organisations to respond more effectively to disruptions and changes in the marketplace. As the supply chain continues to evolve, organisations that embrace digital transformation and invest in the right technologies will be better positioned to succeed in the competitive global marketplace.

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