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’.

‍

‍

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

‍

‍

Interview: Designing Optimal Back of House Infrastructure for F&B and Hospitality Destinations.

Interviewer: Today, we're speaking with Shanaka Jayasinghe, an expert in designing and optimising 'back of house' infrastructure for food & beverage and hospitality venues. Shanaka, with the Olympics around the corner and major events & destination venues in mind, can you share insights into the importance of safe, scalable, and efficient infrastructure?

Shanaka Jayasinghe: Absolutely. The 'back of house' is the engine room for any major F&B or hospitality venue, especially those of larger scale, for example Integrated Resort Venues and Major Sporting Precincts. Efficient design is critical not only for the success of the event but also for the safety and experience of staff and guests, and the long-term legacy for the community.

The Importance of 'Back of House' Infrastructure

Interviewer: What makes the 'back of house' infrastructure so crucial for major F&B and hospitality destinations?

Shanaka Jayasinghe: 'Back of house' areas like loading docks, kitchens, and waste management systems are vital for the smooth operation of any large venue. They must be designed to handle high volumes of goods and people, ensuring that everything from food delivery to waste disposal happens seamlessly. Safety, scalability, and efficiency are key. The infrastructure must protect staff and guests, adapt to fluctuating demands, and operate with minimal waste and maximum productivity.

Designing for Safety, Scalability, and Efficiency

Interviewer: How can venues ensure their 'back of house' infrastructure is safe, scalable, and efficient?

Shanaka Jayasinghe: It starts with thoughtful design:

1. Safety: This includes everything from ensuring proper ventilation in kitchens to designing traffic flows that prevent accidents between vehicles and pedestrians. Compliance with health and safety regulations is a minimum standard, but truly effective designs anticipate and mitigate risks before they arise.
2. Scalability: Venues must accommodate both everyday operations and peak demands during major events. This might involve modular spaces, flexible equipment, or staffing plans that can expand and contract as needed.
3. Efficiency: Efficient 'back of house' designs reduce operating costs and improve service. This involves optimizing layouts for smooth flows of goods and people, investing in high-quality equipment that speeds up production and reduces energy use, and implementing systems that reduce waste.

Stages in Planning for Major Events

Interviewer: What are the different stages in planning 'back of house' infrastructure for a major event like the Olympics?

Shanaka Jayasinghe: Planning for such events typically involves several stages:

1. Conceptual Design: This is where the vision for the venue is created, considering the unique requirements of the event, the expected number of guests, and the types of services to be provided.
2. Detailed Design and Development: Once the concept is approved, detailed plans are drawn up. This stage involves close collaboration with architects, engineers, chefs, and other stakeholders to ensure every aspect of the 'back of house' is optimally designed.
3. Construction and Fit-Out: This stage turns the plans into reality. It's crucial to maintain quality control and stay on schedule and budget.
4. Operational Planning and Training: Before the venue opens, staff need to be recruited, trained, and familiarized with the facilities. Operational plans for everything from supply chain logistics to emergency responses must be tested and refined.
5. Event Execution and Review: During the event, the 'back of house' must operate like clockwork. Afterward, a thorough review can capture learnings for future events.

The Pivotal Role of Procurement in Planning Major Events

In planning for major events, the role of procurement is both critical and multifaceted. It involves not just acquiring goods and services but also strategically managing relationships and resources to ensure that every aspect of the event is delivered on time, within budget, and to the highest standards. Here’s how procurement plays a key role across different stages:

1. Identifying Needs and Sourcing Suppliers: Early in the planning process, procurement teams work closely with all stakeholders to identify the precise needs of the event, from construction materials for temporary structures to food and beverages for hospitality services. They then source suppliers who can meet these needs, considering factors such as cost, quality, capacity, reliability, and sustainability.
2. Assessing and Partnering with Suppliers: Once potential suppliers are identified, the procurement team assesses them based on various criteria, including past performance, financial stability, and compliance with relevant laws and regulations. They look for partners who not only provide the necessary goods and services but can also adapt to the dynamic nature of event planning, often under tight timelines.
3. Contracting and Managing Supplier Relationships: Procurement is responsible for negotiating contracts that protect the interests of the event while ensuring fair terms for suppliers. This includes clear specifications, delivery schedules, and performance criteria. Throughout the event planning and execution, procurement maintains close communication with suppliers, managing orders, handling logistics, and resolving any issues that arise.
4. Operational Procurement for 'Business as Usual' (BAU): Beyond the unique demands of the event itself, procurement ensures the ongoing supply of regular goods and services needed for the 'back of house' operations. This includes everything from routine maintenance supplies to daily food deliveries, ensuring that the event's infrastructure and services run smoothly throughout.

Effective procurement is about more than just buying; it's about strategically sourcing and managing resources to deliver a successful event. From the initial planning stages to the final breakdown, procurement teams are integral in ensuring that every element comes together seamlessly, contributing to the overall success and sustainability of the event.

Impact of Proper Design on Experience and Legacy

Interviewer: How does proper 'back of house' design impact the overall experience and leave a sustainable, lasting positive change for communities?

Shanaka Jayasinghe: A well-designed 'back of house' ensures that guests enjoy seamless service, enhancing their overall experience. For staff, it creates a safe and pleasant working environment. But the impact goes beyond the event itself. Sustainable designs can reduce the environmental footprint of venues, promote local employment, and leave behind facilities that benefit the community for years to come. For instance, a modular kitchen used during an event can be repurposed for community use afterward, or waste management systems can set new standards for environmental responsibility in the area.

The Role of Consultancy in Designing Back of House Infrastructure

Interviewer: How can consultants like you assist in this complex process?

Shanaka Jayasinghe: Consultants bring a wealth of experience and a fresh perspective. We can guide venues through each stage of the process, from initial concept to post-event review. Our role often involves benchmarking against best practices, advising on the latest technologies and methods, and helping to coordinate the many stakeholders involved in such projects. Ultimately, we're here to ensure that the 'back of house' infrastructure meets the highest standards of safety, scalability, and efficiency.

Interviewer: Thank you, Shanaka, for sharing your valuable insights on designing effective 'back of house' infrastructure for major F&B and hospitality destinations. Your expertise offers a clear guide for businesses looking to excel in hosting major events.

Shanaka Jayasinghe: It's been a pleasure. Remember, the 'back of house' may be behind the scenes, but it's central to the success of any major event or destination. Proper planning and design are key to delivering a safe, enjoyable, and sustainable experience.

The Importance of 'Back of House' Infrastructure: The Risks of Poor Design

When delving into the 'back of house' infrastructure, the stakes of design and execution are incredibly high. Poorly designed back-of-house areas can have cascading effects on the entire operation of major F&B and hospitality venues, particularly during large-scale events. Let's break down the potential pitfalls of inadequate back-of-house infrastructure:

Unsafe Working Environments

Inefficiently designed spaces can lead to overcrowded, chaotic, and unsafe working conditions. Poorly planned traffic flows might lead to accidents between staff or between staff and vehicles, especially in high-paced environments. Insufficient ventilation in areas like kitchens can lead to health risks, while inadequate waste disposal systems can create hazardous conditions.

Traffic Congestion and Parking Issues

Loading docks are the lifeblood of any large venue, facilitating the smooth flow of goods in and out. However, if these areas are not strategically planned, they can become bottlenecks, causing traffic congestion not only within the venue but also on surrounding roads. Similarly, poorly designed guest car parks can lead to frustrating delays for attendees, negatively impacting their overall experience and potentially causing safety issues.

High Cost to Serve

A poorly designed back of house significantly increases the cost to serve. Inefficiencies in the layout can lead to longer distances for moving goods from the loading dock to storage areas or kitchens, increasing labor and equipment costs. If waste management systems are not optimally designed, the costs and complexities of disposal can escalate quickly.

Increased COGs and Labour Costs

Suboptimal back-of-house design can lead to higher costs of goods sold and labor. For instance, inefficient kitchen designs might require more staff to perform the same amount of work, or lead to higher wastage of ingredients. Poorly organized storage areas can result in damaged goods or increased time spent locating items, both of which can significantly drive up costs.

Compromised F&B Experience

The ultimate goal of any F&B and hospitality venue is to provide an exceptional experience to guests. However, if the back of house is poorly designed, it can lead to delays in service, errors in order fulfillment, and a general decrease in the quality of food and beverages. This not only impacts the venue's reputation but can also lead to reduced patronage and revenue.

In summary, the 'back of house' infrastructure is a critical component that, if not properly designed, can lead to unsafe working conditions, operational inefficiencies, increased costs, and a diminished guest experience. It's a foundational element that requires careful, strategic planning and execution to ensure the success and sustainability of any major F&B and hospitality operation.

How Supply Chain Consultants Can Help Project and Change Management of Large Scale Transformations

In today's rapidly evolving business landscape, large-scale transformations have become a necessity for companies striving to stay competitive. These transformations often encompass extensive changes in processes, technologies, and organisational structures. Navigating such complex transitions successfully is no small feat. This is where supply chain consultants play a crucial role. By leveraging their expertise, businesses can ensure that project and change management efforts yield tangible benefits in the form of cost reductions and operational efficiencies.

The Role of Supply Chain Consultants

Supply chain consultants are professionals with specialised knowledge in optimising supply chain processes. They offer a fresh perspective and bring a wealth of experience from various industries. Their role in project and change management involves a combination of strategic planning, process optimisation, and stakeholder management. Let's explore how supply chain consultants contribute to large-scale transformations.

Strategic Planning and Alignment

Assessing Current State and Defining Objectives

The first step in any large-scale transformation is to assess the current state of the organisation's supply chain. Supply chain consultants conduct comprehensive assessments to identify bottlenecks, inefficiencies, and areas for improvement. This involves analysing data, conducting interviews, and benchmarking against industry standards.

Once the current state is understood, consultants work closely with key stakeholders to define clear and achievable objectives. These objectives are aligned with the company's overall strategic goals. Whether the aim is to reduce costs, improve customer service, or enhance operational efficiency, having well-defined objectives is crucial for guiding the transformation process.

Developing a Roadmap

With objectives in place, supply chain consultants develop a detailed roadmap for the transformation. This roadmap outlines the steps needed to achieve the desired outcomes, including timelines, resource requirements, and key milestones. The roadmap serves as a blueprint for the entire transformation process, ensuring that all efforts are coordinated and aligned with the strategic vision.

Process Optimisation

Identifying and Eliminating Inefficiencies

One of the primary ways supply chain consultants contribute to cost reductions and operational efficiencies is by identifying and eliminating inefficiencies in existing processes. Through data analysis and process mapping, consultants pinpoint areas where resources are being wasted or where processes are unnecessarily complex.

For example, a consultant might identify redundant steps in the procurement process that can be streamlined to reduce lead times and costs. By simplifying workflows and eliminating non-value-added activities, businesses can achieve significant cost savings and improve overall efficiency.

Implementing Best Practices

Supply chain consultants bring a wealth of knowledge about industry best practices. They leverage this expertise to recommend and implement proven methodologies and technologies that can drive efficiency improvements. For instance, they might suggest adopting lean manufacturing principles, implementing advanced inventory management systems, or utilising predictive analytics for demand forecasting.

By incorporating best practices into the transformation process, businesses can achieve higher levels of efficiency and effectiveness. This not only leads to cost reductions but also enhances the company's ability to respond to changing market conditions.

Change Management

Engaging Stakeholders

Large-scale transformations often involve significant changes in processes, technologies, and organisational structures. These changes can be met with resistance from employees and other stakeholders. Supply chain consultants play a vital role in managing this resistance and ensuring that all stakeholders are engaged and supportive of the transformation efforts.

Effective change management begins with clear and transparent communication. Consultants work with leadership teams to develop communication strategies that articulate the reasons for the transformation, the expected benefits, and the impact on employees. By addressing concerns and providing regular updates, consultants help build trust and buy-in from stakeholders.

Training and Development

Another critical aspect of change management is ensuring that employees have the skills and knowledge needed to adapt to new processes and technologies. Supply chain consultants develop and deliver training programs that equip employees with the necessary competencies. This may involve hands-on training sessions, workshops, and e-learning modules.

By investing in employee development, businesses can minimise disruptions and accelerate the adoption of new practices. Well-trained employees are more likely to embrace change and contribute to the successful implementation of transformation initiatives.

Ensuring Business Benefits

Monitoring and Measuring Performance

One of the key challenges in large-scale transformations is ensuring that the anticipated business benefits are realised. Supply chain consultants play a crucial role in monitoring and measuring performance throughout the transformation process. They establish key performance indicators (KPIs) and metrics that track progress toward the defined objectives.

Regular performance reviews and audits help identify any deviations from the plan and allow for timely corrective actions. By maintaining a focus on KPIs, consultants ensure that the transformation efforts are on track and that the desired cost reductions and operational efficiencies are being achieved.

Continuous Improvement

The journey towards optimised supply chain processes doesn't end with the implementation of transformation initiatives. Supply chain consultants advocate for a culture of continuous improvement. They help businesses establish mechanisms for ongoing evaluation and refinement of processes.

Continuous improvement involves regularly reviewing performance data, soliciting feedback from employees and customers, and staying abreast of industry trends. By fostering a mindset of continuous improvement, businesses can sustain the benefits of the transformation and remain agile in the face of future challenges.

Real-World Examples

Case Study 1: Manufacturing Company

A large manufacturing company embarked on a transformation journey to improve its supply chain efficiency and reduce operational costs. The company engaged supply chain consultants to assess its current state and develop a comprehensive transformation plan.

Assessment and Objective Setting: The consultants conducted a thorough analysis of the company's supply chain processes and identified several areas for improvement, including excessive inventory levels, long lead times, and high transportation costs. They worked with the company's leadership team to set clear objectives, such as reducing inventory by 20%, shortening lead times by 15%, and lowering transportation costs by 10%.

Process Optimisation: The consultants implemented a series of process improvements, including optimising inventory management practices, renegotiating contracts with suppliers, and streamlining logistics operations. They also introduced advanced forecasting tools to enhance demand planning accuracy.

Change Management: To ensure successful implementation, the consultants developed a robust change management strategy. They conducted training sessions for employees to familiarise them with new processes and technologies. Regular communication updates kept stakeholders informed and engaged throughout the transformation journey.

Results: As a result of these efforts, the company achieved a 22% reduction in inventory levels, a 17% reduction in lead times, and a 12% reduction in transportation costs. The transformation not only yielded significant cost savings but also improved the company's overall operational efficiency and customer satisfaction.

Case Study 2: Retailer

A major retailer faced challenges in managing its supply chain operations, leading to high operational costs and frequent stockouts. The retailer enlisted the help of supply chain consultants to address these issues and drive a large-scale transformation.

Assessment and Objective Setting: The consultants conducted a detailed analysis of the retailer's supply chain, identifying key pain points such as inefficient warehouse operations, inaccurate demand forecasting, and high labour costs. They worked with the retailer's management team to establish objectives, including reducing warehouse operating costs by 15%, improving forecast accuracy by 10%, and lowering labour costs by 12%.

Process Optimisation: The consultants introduced a range of process improvements, such as implementing warehouse automation technologies, enhancing demand forecasting models, and optimising labour scheduling. They also recommended adopting an omnichannel fulfilment strategy to better meet customer demands.

Change Management: The consultants developed a comprehensive change management plan, which included training programs for warehouse staff, workshops for demand planners, and communication campaigns to keep all employees informed about the changes. They also established a feedback mechanism to address any concerns and make necessary adjustments.

Results: The retailer achieved a 16% reduction in warehouse operating costs, a 12% improvement in forecast accuracy, and a 14% reduction in labour costs. The transformation resulted in more efficient supply chain operations, improved product availability, and enhanced customer experience.

Large-scale transformations are essential for businesses to stay competitive in today's dynamic market environment. Supply chain consultants play a pivotal role in ensuring the success of these transformations by providing strategic planning, process optimisation, and effective change management. Through their expertise, businesses can realise significant cost reductions and operational efficiencies.

By engaging supply chain consultants, companies can navigate the complexities of large-scale transformations with confidence. From assessing the current state and defining objectives to implementing best practices and managing change, consultants provide invaluable support throughout the transformation journey. The result is a more efficient, agile, and competitive organisation that is well-positioned to thrive in the face of future challenges.

Investing in supply chain consulting services is not just a cost; it's a strategic investment that can deliver substantial returns in the form of cost savings and enhanced operational performance. As demonstrated by real-world examples, the benefits of engaging supply chain consultants are tangible and measurable. Businesses that prioritise effective project and change management with the help of supply chain consultants are better equipped to achieve their transformation goals and sustain long-term success.

‍