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Planning, Forecasting, S&OP and IBP
October 16, 2023
CSLO: The Silent Enhancer of S&OP in ANZ Manufacturing
Discover how fine-tuning CSLO settings can elevate your sales and operations planning process. Learn about the crucial role of APS technology, and how strategic investments can lead to reduced costs, improved working capital, and unmatched service levels.
CSLO: The Silent Enhancer of S&OP in ANZ Manufacturing
In the ever-evolving manufacturing sectors of Australia and New Zealand, companies continuously strive to stay ahead of the curve. Amidst this pursuit of excellence, constrained service level optimisation (CSLO) emerges as a pivotal aspect, often overlooked, yet integral in shaping the sales and operations planning (S&OP) landscape.
Understanding the Power of Effective CSLO Settings
CSLO, in essence, facilitates the optimal alignment of supply capabilities with market demands. By effectively setting and fine-tuning CSLO parameters, manufacturers can achieve:
Heightened S&OP Precision: Accurate CSLO settings allow businesses to seamlessly align their sales projections with operational capabilities, paving the way for more efficient planning and execution.
Inventory Excellence: Through CSLO, manufacturers can avoid common pitfalls such as overstocking or stockouts, ensuring that the inventory is always aligned with the demand.
Optimised Production Schedules: CSLO ensures that the manufacturing processes are always in sync with market demands, ensuring smooth operations without overextension or resource wastage.
Modern manufacturing cannot thrive without integrating the latest technological solutions. Advanced Planning & Scheduling (APS) systems stand out in this context, offering unparalleled advantages:
Automated CSLO Configuration: APS systems can auto-adjust CSLO parameters based on real-time data, ensuring consistent alignment with market demands.
Data-Driven Insights: With APS, manufacturers can gain actionable insights from historical data, enabling them to forecast future trends and adjust their CSLO settings accordingly.
Integrated Operations: APS solutions offer a holistic view of the entire manufacturing operation, from procurement to dispatch, allowing for better CSLO-driven decision-making.
Strategic Investments for Unprecedented Gains
Investing wisely in manufacturing operations, especially in CSLO optimisation and APS integration, can yield tangible benefits:
Cost Efficiency: Streamlined operations, resulting from optimal CSLO settings, can significantly reduce wastage and operational costs.
Improved Working Capital: With better inventory and production management, businesses can optimise their capital allocation, leading to increased liquidity and better financial health.
Enhanced Service Levels and Availability: The ultimate aim of CSLO is to meet customer demands efficiently. Through optimal parameter settings, manufacturers can ensure timely deliveries, higher product availability, and superior service levels.
In conclusion, for ANZ manufacturers aiming to establish a robust, efficient, and customer-centric operation, understanding and optimising CSLO settings is paramount. Coupled with the power of APS technology and strategic investments, businesses can truly set themselves apart in a competitive market.
Workforce Planning & Scheduling
October 16, 2023
Efficient Workforce Management for ANZ Businesses: A Detailed Look
Dive deep into the significance of workforce planning, rostering, and scheduling for businesses in Australia and New Zealand. Explore the role of technology, benefits of forecast-led recruitment, and the power of KPI-driven performance.
The Strategic Edge of Effective Workforce Planning
In Australia and New Zealand's competitive marketplace, businesses often grapple with two major challenges: maintaining exceptional service quality and controlling operational costs. The key to addressing these challenges lies in an often-underestimated strategy - effective workforce planning.
Workforce planning is the art and science of ensuring that businesses have precisely the right number of employees, with the requisite skills, exactly when they're needed. Let's delve deeper into its tangible benefits:
Anticipating Skill Requirements: Markets evolve, and with them, the need for specific skills changes. Effective planning allows businesses to foresee these shifts, ensuring they’re never caught off guard by sudden market changes
Boosting Employee Retention: A robust workforce plan isn't just about numbers—it's about understanding employee aspirations and career paths. By aligning individual goals with business objectives, companies can significantly reduce turnover.
Achieving Cost-Efficiency: Overstaffing leads to unnecessary payroll costs, while understaffing can result in missed business opportunities. Strategic planning ensures an optimal employee-to-task ratio, ensuring financial efficiency.
Rostering & Scheduling: Perfecting the Daily Dance
At the operational heart of every business is its day-to-day rostering and scheduling. In customer-centric markets like Australia and New Zealand, the immediate availability of well-trained staff becomes a game-changer.
Smart Staff Allocation: An efficient roster ensures that during high-demand hours, businesses are never short-staffed, and during quieter times, they aren’t bleeding money on excess wages.
Employee Satisfaction and Work-Life Balance: A well-thought-out roster considers employee shift preferences, ensuring they remain engaged and satisfied, which in turn leads to better service quality.
Harnessing Technology for Seamless Workforce Management
The technology revolution has brought forth an array of tools designed specifically for workforce management. These aren't mere digital aides but game changers:
Data-Powered Decisions: Modern software doesn’t just record data—it analyses it. This means businesses can predict future staffing needs based on past trends, ensuring they're always a step ahead.
Holistic Business Views through Integration: Today's tech platforms can seamlessly integrate with HR, finance, and other core systems, providing managers with a 360-degree view of operations.
Instant Rostering Adjustments: Gone are the days of manual rostering. With cloud solutions, alterations can be made in real-time, and instantaneously communicated to staff.
The Synergy of Monthly Forecast-Led Recruitment with Weekly Rostering
Here’s a strategy that's gaining traction: using monthly recruitment forecasts to inform weekly rosters. By understanding the predicted business peaks and troughs of the upcoming month, recruiting becomes a strategic function.
Rapid Response to Market Changes: Be it a sudden tourist influx, a local event, or seasonal demands, businesses can adjust their staffing levels with agility.
Avoiding Panic-Driven Hiring: Last-minute recruitments are often costly and can lead to suboptimal hires. By planning a month in advance, businesses get the luxury of time to select the best candidates.
Empowerment through KPI-Driven Performance Metrics
It's crucial to ensure that all these strategies are achieving their intended results. Enter KPIs. By providing clear, measurable targets:
Venue Managers Gain Clarity: Whether it's about managing staff punctuality or tracking service quality, KPIs provide a clear path to success.
Staff Takes Ownership: With clear KPIs, every staff member knows what's expected of them, fostering a sense of responsibility and purpose.
In essence, for businesses in Australia and New Zealand to truly thrive, a shift in perspective is needed—one that places strategic workforce planning, aided by technology, at the very core of operations.
Procurement
October 16, 2023
Redefining Procurement for ANZ Businesses: Why Suppliers Are More Than Just Vendors
Discover why it's vital to see suppliers as an intrinsic part of your supply chain and how this perspective can unearth unprecedented value for businesses.
Redefining Procurement for ANZ Businesses: Why Suppliers Are More Than Just Vendors
In the bustling landscapes of Australia and New Zealand, terms like 'strategic sourcing' and 'supplier relationship management' frequently echo across boardrooms. These concepts, often aimed at reducing costs and forging stronger supplier ties, have reaped rewards for many enterprises. Yet, are ANZ businesses truly maximizing the potential of these partnerships?
Unearthing Hidden Value in Procurement
While there's no doubt about the achievements of established procurement strategies, there's a consensus among industry observers, including us at trace., that more value awaits discovery.
Procurement teams tend to pull on certain levers for refining supplier relations, such as:
Minimising overall costs, from unit costs. supply chain operating costs, to return expenses.
Refining trading conditions, exemplified by the cash-to-cash cycle.
Ensuring prioritised service during product scarcity.
Guaranteeing top-tier product quality and minimal returns.
Encouraging innovations, from product launches to tailored marketing campaigns.
Promoting sustainability, from modern slavery compliance to carbon neutrality goals.
Nurturing relationships marked by trust and seamless business dealings.
Yet, a disproportionate emphasis on cost and trading terms — often bundled as 'value for money' — can sideline other invaluable aspects. This tunnel vision, further exacerbated by KPIs heavily tilted towards quantifiable savings, calls for a holistic review of procurement functions.
Learning from the Leaders
Industries like grocery and high-tech have successfully navigated this realm, prioritising innovation and nurturing relationships essential for product and tech advancements. Their success stories are a testament to the gains possible when businesses look beyond mere cost-cutting.
Tapping into Untapped Opportunities
To truly amplify the potential of procurement, businesses should:
Prioritise Sustainability: Collaborate with suppliers to minimise waste. For instance, adopting roll cages can decrease the need for cardboard packaging, plastic wraps, and pallets. Strategise with suppliers to optimise transportation routes, potentially transitioning to electric vehicle fleets.
Share Information Authentically: Provide genuine insights on forecasts, inventory, and promotional campaigns, fostering mutual growth and cost reduction.
Introduce Comprehensive Partnership Metrics: These should encompass ease of business, innovation, and adaptability.
The Supplier: An Extension of Your Enterprise
When suppliers are viewed as integral to the supply chain, the dynamics shift radically. Visualise a scenario where a business opts for vertical integration. The strategies surrounding planning, scheduling, and product ownership would starkly differ from traditional supplier liaisons.
Facing the Challenges Head-On
Certain roadblocks persist:
Procurement teams occasionally lack the intricate business knowledge necessary to identify unique value drivers.
Businesses don't always immerse themselves deeply enough in the procurement process, withholding vital insights.
Many existing KPIs are reactive, curbing proactive measures.
How trace. Can Illuminate the Path Forward
At trace., our seasoned experts have championed clients through these intricate challenges. Leveraging diverse tools tailored to individual needs, we've played pivotal roles in strategic sourcing, bridged gaps between suppliers and consumers, and introduced cutting-edge supply chain technologies.
Keen to delve deeper? Engage with the trace. team. Let’s share success stories and carve out bespoke solutions to elevate your supply chain endeavours.
Strategy & Design
October 16, 2023
Supply Chain Visibility
2023 and we are still seeking visibility in supply chains
Unlocking End-to-End Supply Chain Visibility for ANZ Executives
Visibility remains a pivotal aim for supply chain professionals across Australia and New Zealand. The merits, ranging from cost reduction to customer satisfaction enhancement, have been extensively highlighted. So, what impediments are businesses encountering on their journey to achieve full visibility? Here are three prominent reasons:
Incomplete Implementations: Many aim for comprehensive visibility while designing new supply chain processes. However, real-world challenges, such as budget constraints or shifting priorities, lead to only partial solutions being executed. This often leaves teams grappling with less-than-ideal systems.
Prohibitive Integration Costs: It's not uncommon to witness projects where integration expenses – be it among ERP systems, supplier platforms, financial tools, or reporting instruments – skyrocket. This becomes a formidable barrier, making visibility an expensive endeavour.
Fragmented Systems with Siloed Reporting: ERPs might trace inventory up to a point. But, once the inventory moves – say to a warehouse, branch, or vehicle – that traceability diminishes. The item, though dispatched, is no longer under systematic surveillance.
Yet, the landscape is not devoid of practical solutions. For instance, a food and beverage client, striving to amplify supplier performance and enhance DIFOT metrics, sought a system to monitor supplier efficacy. While a comprehensive ERP deployment was on the horizon, they needed an immediate remedy. We, at trace, employed the Microsoft PowerApps suite to craft a tool for their Loading Dock personnel. This tool not only pinpointed delivery discrepancies but also integrated seamlessly with existing systems, presenting real-time supplier performance insights.
The case mentioned above epitomises how immediate, tactical solutions can fulfil the supply chain vision of unhindered visibility. At trace, our seasoned professionals assist ANZ clients, offering tools and strategies tailored to unique challenges. Rapid benefits can be harvested through platforms like Microsoft PowerApps, with more expansive, investment-heavy solutions considered subsequently.
Intrigued by our approach and keen to delve deeper?
Reach out to the trace team today. Let's explore success stories and how we can collaborate to enhance your supply chain visibility.
Technology
October 10, 2023
GAINS Systems Partnership - Advanced Planning Systems Australia and New Zealand
We're thrilled to announce that trace. is joining forces with GAINSystems to deliver cutting-edge planning solutions to organisations across Australia.
🚀 Exciting News! 🤝 trace. and GAINSystems Partner to Transform Australian Supply Chains! 🌏
We're thrilled to announce that trace. is joining forces with GAINSystems to deliver cutting-edge planning solutions to organisations across Australia. 📦🌐
GAINSystems has long been recognised as a global leader in supply chain planning software, and their expertise is unparalleled. As our key delivery partner in Australia, trace. brings a deep understanding of the local landscape and years of experience in planning system implementations. 📊💼
As a part of our Australian and New Zealand offering, trace. is excited to announce our recent collaboration with Informed 365 – a global Environmental, Social and Corporate Governance (‘ESG’) platform that provides Supply Chain Management, Ethical Sourcing, Modern Slavery and ESG Business Intelligence solutions for clients to collect, analyse data and report through advanced technology and automation.
Having worked with many industries and clients in Australia, New Zealand and internationally, including Property Council of Australia and a consortia of Australia’s Top 40 Law Firms – Informed 365 has proven experience in supporting organisations to achieve data transparency and make informed decisions.
Warehouse & Transport
October 3, 2023
An In-Depth Guide to Warehouse Relocation
Evolving from one warehouse space to another signals growth, but the transition demands careful orchestration.
Navigating Growth: An In-Depth Guide to Warehouse Relocation
Evolving from one warehouse space to another signals growth, but the transition demands careful orchestration. For Australian businesses ready to leap, it’s crucial to anticipate challenges, strategise effectively, and ensure that the relocation becomes a growth catalyst. Here’s your detailed roadmap:
1. Needs Assessment: Tailoring to Your Unique Business
Each business has distinct warehousing needs. Begin by articulating yours:
Space Requirements: Estimate the immediate space necessary and incorporate projections considering your growth trajectory.
Infrastructure Nuances: Your products might need high ceilings, cold storage, or other specialised settings. Identify these essentials early on.
Centralised vs. Decentralised: Determine if one central hub suffices or if multiple decentralised warehouses, spread across Australia, would offer better distribution efficiency.
Automation Considerations: Are you planning to implement robotic solutions or automated storage and retrieval systems (AS/RS)? Your new warehouse should be conducive to these technologies.
Our continent’s vastness and varied topography make location choice pivotal:
Proximity Balance: Optimal locations ensure reduced lead times and transport costs. Balance proximity between suppliers, major customer bases, and transportation hubs.
Transport Connectivity: Prioritise locations with easy access to major highways, railway stations, or ports. It streamlines logistics tremendously.
3. Financial Lens: Beyond Just Rent
It’s not just about the square footage cost:
Operational Budgeting: Assess utilities, local labour availability and associated costs, and inbound-outbound transportation expenses.
Relocation Budgeting: Dedicate a budget for moving logistics, potential obsolete stock clearances, and initial setup costs.
4. Engage Experts: Local Knowledge, Global Expertise
The right experts can make or break your move:
Relocation Consultants: Australian market-specific consultants can provide insights into property rates, areas with upcoming infrastructure development, and relocation best practices.
Legal Insight: Local regulations, zoning laws, and leasing contracts in Australia can be intricate. A legal professional ensures you don’t overlook crucial details.
5. Design & Infrastructure Blueprinting
Once a property is shortlisted, envision its daily operations:
Flow Dynamics: Design the space for maximum efficiency. Factor in receiving docks, storage zones, picking & packing stations, and dispatch areas.
Tech Provisions: If you're leaning into automation or advanced WMS, ensure electrical setups, floor layouts, and IT infrastructure align with these tools.
6. Stakeholder Communication: All Hands On Deck
Your move impacts a myriad of partners:
Team Communication: Pre-empt staff concerns. Offer clarity on relocation timelines, potential commute changes, and orientation to new processes.
Supply Chain Notification: Early alerts to suppliers, logistics partners, and clientele can prevent potential supply chain hiccups.
7. Moving Day(s): The Execution Challenge
It’s showtime:
Inventory Deep Dive: Conduct a rigorous stocktake pre-move. Streamline inventory, phase out obsolete items, and prepare for a smoother transition.
Expert Movers: Regular removalists won’t suffice. Engage logistic providers with a track record in large-scale warehouse relocations.
Plan B Ready: Last-minute challenges? Perhaps a roadblock or setup delays? Have a contingency strategy at hand.
8. Settling & Optimising: Beyond Just Moving In
You’ve moved, but the journey’s just begun:
Systems Test: Prior to scaling operations, run a complete system diagnostic, especially if new technologies are at play.
Feedback Collection: Your ground team’s feedback is gold. It helps in fine-tuning the new setup for operational excellence.
Process Retrospective: Capture relocation insights – the triumphs and the challenges. They're invaluable for any future strategic moves.
The Next Chapter in Your Growth Saga
Relocating your warehouse in Australia isn’t just a logistical move; it's a significant strategic transition. But with detailed planning, local expertise, and a keen eye on the nuances of the Australian business environment, this transition promises not just seamless growth but a foundation for even loftier business aspirations. Are you ready to turn the page?
Strategy & Design
Australia's Emergency Response Capability and Preparedness
Enhancing Australia's Emergency Response Capability and Preparedness: Emergency Supply Chain Design and Strategy
Enhancing Australia's Emergency Response Capability and Preparedness: Emergency Supply Chain Design and Strategy
When nature's fury or unforeseen calamities strike, Australia's frontline responders - spanning fire emergency services, ambulance teams, police forces, the national emergency management agency, and more - are fortified not merely by their unparalleled dedication but also by an intricately crafted supply chain strategy.
This backbone of preparedness ensures that our capability is never found wanting. This article examines the facets of supply chain management that elevate our nation's emergency responsiveness.
In-depth Supply Chain Network Planning: Building Robust Capability
At the nexus of rapid response lies a thoroughly envisioned supply chain network:
Strategic Warehouse Locations: Using a blend of past emergency data, GIS, and input from fire emergency and ambulance services, distribution centres are judiciously placed to ensure swift accessibility.
Transportation Intelligence: Alongside understanding primary routes, collaborations with police services ensure real-time monitoring of transportation arteries, allowing proactive movement of supplies even before disasters escalate.
Inventory management's true essence shines in its ability to predict and provide:
Critical Item Definition: In liaison with organisations like the national emergency management agency, items are ranked by their significance, ensuring each unit, from fire brigades to ambulance teams, has what they need.
Advanced Stock Monitoring: Today's AI-integrated systems, backed by insights from various emergency services, offer real-time stock assessments, guaranteeing that critical supplies are ever-ready.
Streamlined Supplier Arrangements: Fast-track contracts and digital procurement interfaces ensure that replenishment is seamless, meeting the ever-evolving needs of emergency services.
Pre-positioning Inventory: Strategic foresight, informed by data and ground reports from services like fire emergency units, results in adaptive stockpiling based on potential disaster zones.
Disaster-centric Segmentation: Collaborative insights from police, ambulance, and fire services ensure dedicated zones within warehouses, expediting supply deployment.
Dynamic Layouts: Seasonal predictions and feedback from frontline units guide adaptive warehousing layouts, ensuring supplies are dispatched with unmatched speed.
Network Planning & Design: Crafting Unrivalled Agility into Response
Network design is the cornerstone of heightened capability and preparedness:
Data Integration: Collating inputs from traffic units, weather stations, historical patterns, and frontline feedback provides an overarching perspective.
Adaptive Resource Allocation: Proactive resource positioning, based on shared intelligence from emergency units, ensures services in potential crisis areas are well-equipped.
Continuous Iterative Learning: Reviews and debriefs from all emergency services continuously feed into the network strategy, refining our preparedness blueprint.
The Immeasurable Role of Supply Chain Expertise
Amidst the technology and data, the nuanced expertise of supply chain professionals bridges the gap between logistical strategy and on-ground reality. Their intricate understanding of how each emergency service operates ensures that supply chains are tailored, responsive, and adaptive.
Unified Action: The Pinnacle of Collective Strength
Emergencies demand more than individual brilliance; they require synchronized, coordinated responses. By fostering unity among fire emergency services, ambulance teams, police units, and agencies like the national emergency management body, we ensure a harmonized, collective, and potent response. Shared databases, inter-agency drills, and cohesive communication platforms underline our unified resolve.
Across Australia's vast expanse, with its unique challenges and diverse emergency scenarios, stands a robust supply chain strategy, elevating our capability and preparedness. It epitomizes our collective commitment to safeguard every citizen, ensuring that in the face of adversity, Australia stands resilient, unified, and always prepared.
Warehouse & Transport
October 3, 2023
Warehouse Design: A Blueprint for Order Fulfilment
The efficiency of warehouse operations is not just about space—it's about maximizing its potential.
Warehouse Design: A Blueprint for Efficient Order Fulfilment
The efficiency of warehouse operations is not just about space—it's about maximizing its potential. In the competitive world of retail, where margins are thin and customer expectations are high, a strategic approach to warehousing can spell the difference between profit and loss. Let’s deep dive into how optimal warehouse configurations, advanced technology, and streamlined processes can revolutionize your supply chain.
Demystifying Warehouse Configurations
The foundation of efficient warehousing lies in its configuration. Here's a deeper look at how various configurations suit different needs:
Traditional Warehouses: These are spacious areas designed for long-term storage. Given their setup, they often incorporate large shelving units and extended aisle spaces, making them ideal for retailers with an expansive range of SKUs and stable demand.
Cross-docking: Designed like a relay race, items come in on one side and leave almost immediately from the other. Cross-docking facilities often have multiple loading and unloading docks and minimal storage areas. It's ideal for perishable goods or promotional items that need quick shipping.
Multi-tier Warehouses: These facilities maximize vertical space. They incorporate mezzanines, multi-level racking, and often utilize elevators or conveyance systems to move goods across levels. They're perfect for urban settings where land is expensive.
Pop-up Distribution Centers: Essentially, these are makeshift warehouses, set up in strategic locations during peak demand seasons. Often, these might be tents, rented spaces, or even unused urban locales, outfitted temporarily for storage and dispatch.
Technology & Automation for Optimal Efficiency
Warehouses of today are becoming more tech-savvy. Let's delve into the tech tools that are making waves:
Warehouse Management Systems (WMS): This is no ordinary software. Modern WMS integrates AI to predict demand, uses real-time data to monitor inventory levels, and can even integrate with e-commerce platforms to synchronize order data.
Automated Storage & Retrieval Systems (AS/RS): Think of it as a giant vending machine. Items are stored in precise locations and are retrieved by automated machines that navigate the warehouse, increasing speed and reducing errors.
Robotics: Beyond traditional conveyor belts, warehouses now deploy robots for a plethora of tasks. From bots that can navigate aisles picking items to robotic arms that pack boxes, automation is reducing dependency on manual labor.
Internet of Things (IoT): With sensors on racks, pallets, and even individual products, real-time tracking has never been easier. It helps in inventory management, ensuring goods are stored and moved optimally.
Drones: Imagine doing a full warehouse inventory in hours instead of days. Drones equipped with cameras and sensors can fly through aisles, scanning barcodes, and checking inventory levels.
Process Methodologies: The Backbone of a Streamlined Warehouse
Technology alone isn’t the answer; the processes driving them are just as vital:
Lean Warehousing: Rooted in the principles of minimizing waste, lean warehousing emphasizes optimal space usage, streamlined pick-pack processes, and constant process evaluation.
Just in Time (JIT): By partnering closely with suppliers, warehouses can adopt JIT to receive stock precisely when needed, minimizing storage costs and ensuring product freshness.
ABC Analysis: Through this, inventory is classified based on its value and sales frequency. 'A' items are high-value products sold frequently, requiring prime storage locations, while 'C' items are low-value, slow-moving products that can be stored away from primary areas.
Batch Picking: Rather than walking the entire warehouse for a single order, pickers gather items for multiple orders in one go. This reduces transit time and improves efficiency.
Zone Picking: This requires dividing the warehouse into zones and assigning pickers to specific areas, ensuring they become experts in their respective zones, speeding up the picking process.
To thrive in today's retail world, rethinking warehouse strategy is paramount. By tailoring warehouse design, embracing tech innovations, and honing processes, retailers can ensure their supply chain becomes a strength, not a bottleneck. Because in today's fast-paced retail environment, it's not just about selling a product, but delivering an experience.
Workforce Planning & Scheduling
October 3, 2023
Labour Planning & KPI Reporting
A Path to Improving Service and Profitability in Australian F&B and Hospitality
Labour Planning & KPI Reporting: A Path to Improving Service and Profitability in Australian F&B and Hospitality
Australia's Food & Beverage (F&B) and hospitality industry has its unique blend of challenges and opportunities. Two tools that can act as game-changers in this sector are efficient labour planning and robust KPI reporting. But how exactly do these tools unlock superior service and profitability?
1. Delving Deeper into Labour Planning
Balancing Workforce Demand and Supply: Proper labour planning isn't just about having enough staff; it's about having the right staff at the right times. By analysing peak hours and the ebb and flow of customer traffic, businesses can pinpoint exact staffing needs, ensuring neither wastage nor dearth.
Boosting Employee Morale: A thought-through labour schedule considers employee preferences, resulting in increased job satisfaction. Satisfied employees are likely to provide better service, driving customer satisfaction and loyalty.
Accurate Budgeting: With labour being a major expense, knowing your exact requirements can help in precise budget allocation. This means avoiding unnecessary overtime costs and better financial management.
2. Unpacking the Benefits of KPI Reporting
Responsive Decision-Making: Traditional decision-making often relies on instinct. KPIs, however, offer concrete data. If a new cocktail isn't hitting sales targets, real-time KPIs can pinpoint this, allowing for timely strategy tweaks.
Benchmarking Excellence: KPIs aren't just internal metrics. They allow businesses to measure themselves against industry leaders, pushing for standards of excellence and helping them identify areas of improvement.
Predictive Analysis for Strategic Advantage: KPI trends can be incredibly telling. If a business notices that a particular service KPI consistently dips during certain hours, preemptive actions can be taken to rectify the same in the future.
3. Synergizing Labour Planning and KPI Reporting
Combining these tools can be transformational:
Imagine a scenario where a restaurant's KPIs indicate a spike in orders post-9 pm. Labour planning can then ensure that more experienced chefs and servers are scheduled during that window.
On the flip side, if KPIs reveal a recurrent lull on Tuesday afternoons, labour planning can adjust staffing to a bare minimum, saving costs.
4. Australian Specificities Matter
Australia’s diverse culinary preferences, tourism-centric spots, and seasonal attractions add layers to labour and KPI strategy. For instance, a beachside café in Sydney may need different staffing during summer weekends compared to a winery in Yarra Valley.
5. The Golden Link to Profitability
Integrating effective labour planning with KPIs can:
Increase Revenue: By ensuring that staff is available and primed during high-demand times, businesses can cater to more customers, driving up sales.
Reduce Costs: Precise labour allocation reduces overheads like unnecessary overtime. Moreover, acting on KPIs can help avoid wastages—be it food in a restaurant or amenities in a hotel.
Elevate Customer Experience: This combo ensures that every customer gets the attention they deserve, leading to positive reviews, repeat business, and word-of-mouth referrals—all essential for profitability.
For F&B and hospitality businesses in Australia aiming to maximise service quality while ensuring profitability, the merger of labour planning and KPI reporting isn't just beneficial—it's essential. As the industry's landscape continues to evolve, these tools offer a reliable compass, guiding businesses towards sustainable success.
In the dynamic world of F&B and hospitality, having tangible, actionable strategies is invaluable. With adept labour planning and KPI analysis, Australian businesses can position themselves at the forefront of service excellence and profitability.
Planning, Forecasting, S&OP and IBP
September 16, 2023
Sales & Operations Planning: Steps for Robust Implementation with Advanced Planning Solution
For Australian businesses poised to either initiate a new S&OP or refine an existing one, this comprehensive guide has your back.
Mastering Sales & Operations Planning: Steps for Robust Implementation with Advanced Planning Solutions
Sales & Operations Planning (S&OP) stands as a linchpin, harmoniously linking a company's sales strategy with its operational prowess. A well-executed S&OP can uplift efficiency, cut down costs, and amplify revenue. For Australianbusinesses poised to either initiate a new S&OP or refine an existing one, this comprehensive guide has your back.
Grasping the Gravity of S&OP
It's vital first to understand the transformative essence of S&OP. This integrated business management process harmonises divergent company facets, ensuring sales and operations cohorts move in unison. The results? Spot-on forecast precision, streamlined inventory oversight, and profit maximisation tailored for the Australian market.
Steps to Implement or Update Your S&OP Process:
Evaluation of the Current Situation:
For New Implementations: Delve into your company's prevailing sales tactics, operational capabilities, and any extant planning strategies.
For Refinements: Scrutinise your current S&OP framework, pinpointing gaps, redundancies, or inefficacies.
Assemble a Multi-disciplinary Team:Muster a squad encapsulating reps from sales, operations, finance, and other pivotal sectors. This promotes a rich tapestry of insights.
Set Crystal Clear Aims:What's the endgame with your S&OP? Whether it revolves around honed demand prognostication, top-notch inventory stewardship, or bolstered inter-department collaboration, defined objectives will shepherd your rollout.
Embrace Suitable Tech - The Power of Advanced Planning Solutions:The technological backbone of your S&OP is non-negotiable. Investing in an Advanced Planning Solution, tailored for the Australian market, can revolutionise your process.
Draft & Chronicle the Process:Clearly chart each S&OP phase, from intel gathering to the appraisal stage. Documenting offers a roadmap for all, ensuring Australian industry compliance and best practices.
Training:Arm your crew with requisite know-how. This might encompass structured training bouts, workshops, or even roping in a local Aussie S&OP expert.
Pilot Tests:Trial your approach on a micro scale prior to a full-blown deployment. It’s your litmus test for efficiency.
Consistent Reviews:The dynamic Australian business terrain mandates that you regularly recalibrate your S&OP in line with evolving goals and market conditions.
Iterative Refinement:Champion a culture of incessant refinement. Foster feedback streams from all S&OP-involved departments, and be agile in making iterative course corrections.
Example Technologies
Advanced Planning and Scheduling (APS) solutions are designed to manage and optimise key aspects of manufacturing operations and supply chain management. They range from demand forecasting to inventory planning, resource allocation, and production scheduling. Here are some notable APS solutions:
SAP Integrated Business Planning (IBP): SAP's offering combines sales and operations planning (S&OP), forecasting and demand, response and supply, demand-driven replenishment, and inventory processes.
Kinaxis RapidResponse: This cloud-based solution allows enterprises to concurrently plan, monitor, and respond across multiple areas of their supply chain, from sourcing to delivery.
Oracle Advanced Supply Chain Planning (ASCP): A comprehensive solution from Oracle that covers a vast range of supply chain planning processes, including demand forecasting, inventory planning, and distribution requirements.
Infor CloudSuite SCM: Infor's solution offers a suite of tools that encompass demand and supply management, sales and operations planning, and production scheduling.
AspenTech aspenONE: Predominantly used in the process industries, it offers advanced process control, simulation, and optimisation for supply chain and manufacturing operations.
JDA Manufacturing Planning: Before transitioning to Blue Yonder, this APS provided a suite of capabilities from demand to delivery, including planning, production scheduling, and procurement.
o9 Solutions: o9 Solutions' platform offers an integrated planning experience, covering demand, supply, and financial planning. Their AI-powered platform aids in decision-making and predictive analytics.
Blue Yonder: After acquiring JDA, Blue Yonder has further cemented its position in the APS landscape. With a broad suite of end-to-end supply chain and retail solutions, it aids in forecasting, planning, scheduling, and execution.
If you're considering adopting an APS solution, it's essential to evaluate each based on the specific requirements of your industry, the size of your business, existing IT infrastructure, and your long-term planning goals.
Common Hurdles & Their Avoidance:
Operational Silos:At the heart of S&OP lies integration. Sidestep the allure of compartmentalised department operation.
Overelaboration:While thoroughness is key, a convoluted S&OP can alienate team members. Aim for lucidity and succinctness.
Change Aversion:Your S&OP will inevitably morph. Cultivate an adaptable team spirit, especially in the ever-evolving Australian market context.
Wrapping Up
A fine-tuned S&OP can catapult your business into the Australian market limelight, synchronising your sales and operational stratagems. But remember, the efficacy of your S&OP isn't rooted merely in its inaugural deployment but in an enduring allegiance to assessment and refinement.
Keen on a deeper plunge into the Australian S&OP universe or seeking expert counsel? Our adept team is primed to assist, ensuring your sales & operations planning framework is nothing short of spectacular.
Strategy & Design
September 16, 2023
Transform Your Supply Chain into a Source of Competitive Advantage with trace.
Our supply chain consulting firm specialises in transforming supply chains from cost centres into powerful sources of competitive advantage.
Transform Your Supply Chain into a Source of Competitive Advantage with trace.
In today’s hyper-competitive business environment, viewing the supply chain solely as a 'cost centre' is a missed opportunity. Progressive organisations are already harnessing their supply chain operations to carve out a unique market position. Our supply chain consulting firm specialises in transforming supply chains from cost centres into powerful sources of competitive advantage.
Why Rethinking the Supply Chain is Imperative
Integration with Cutting-Edge Technology
With emerging technologies like IoT, Artificial Intelligence, and blockchain, supply chain management is evolving at a rapid pace. These technologies are no longer the future; they're the present. For example, companies using AI can better forecast demand, while IoT enables real-time tracking, which enhances transparency.
Rising Customer Expectations
Customer satisfaction is no longer limited to product quality and price; it extends to speed of delivery and even eco-friendly packaging. Organisations must update their supply chain strategies to meet or exceed these new standards.
Globalisation and Complexity
Businesses are increasingly finding themselves part of a complex, global supply chain. Effective management of such intricate networks not only lowers costs but also reduces lead time.
How trace. Transforms Supply Chains: Strategies and Services
Strategic Alignment
We start by conducting a comprehensive audit of your existing supply chain operations. This helps align your supply chain goals with your overarching business strategy. For example, if your business goal is to break into a new market, your supply chain should be agile enough to adapt to the local logistical and regulatory environment.
Operational Efficiency
Our Six Sigma and Lean methodologies can drastically improve your supply chain efficiency. One of our clients in the manufacturing sector saw a 20% reduction in their operational costs after implementing our tailored recommendations, which included optimising warehousing and incorporating just-in-time inventory.
Innovation Integration
We've helped businesses integrate technologies like blockchain for enhanced traceability and transparency, and AI algorithms for intelligent demand forecasting. One of our retail clients achieved a 25% increase in on-time deliveries after incorporating an AI-driven analytics tool that optimised routing for their deliveries.
Sustainability
Our team will guide you in making your supply chain more sustainable, from eco-friendly packaging to renewable energy-powered logistics. In one case, we helped a consumer goods company reduce their carbon footprint by 15% through optimised routing and sustainable sourcing.
The Competitive Advantage Factor
By optimising your supply chain with trace., the benefits are multifaceted:
Enhanced Customer Satisfaction: Faster, more reliable deliveries and sustainable practices can greatly improve customer loyalty.
Cost-Effectiveness: Lower operational costs translate into better margins and more competitive pricing.
Brand Value: A greener, more transparent supply chain can significantly enhance your brand image.
Market Agility: An optimised supply chain gives you the flexibility to quickly adapt to market changes and disruptions, keeping you a step ahead of your competitors.
The supply chain can either be a cost centre or a competitive differentiator, depending on how you manage it. At trace., we specialise in elevating your supply chain from a basic operational requirement to a strategic asset that sets you apart from the competition.
So, are you ready to turn your supply chain into your strongest asset? Contact trace. today to learn how we can create a custom strategy that drives your competitive advantage.
Planning, Forecasting, S&OP and IBP
September 11, 2023
KPIs and Organisational Structure for Mastering Advanced Planning Systems and Sales & Operations Planning
The relationship between organisational structure, Advanced Planning Systems (APS), and Sales & Operations Planning (S&OP) has grown even more paramount.
Organisational structure, while often overlooked, plays a pivotal role in the successful implementation of Advanced Planning Systems and Sales & Operations Planning.
In the ever-evolving business landscape, the relationship between organisational structure, Advanced Planning Systems (APS), and Sales & Operations Planning (S&OP) has grown even more paramount. When these elements align seamlessly, they can transform potential bottlenecks into streamlined processes, driving both operational excellence and profitability.
1. The Organisational Structure: More Than Just a Framework
At its core, organisational structure is the foundation upon which strategies are built. It determines information flow, decision-making paths, and how strategies like APS and S&OP are implemented. A well-structured organisation can effectively harness its APS capabilities and streamline its S&OP processes to ensure efficiency and responsiveness to market dynamics.
2. Aligning Business Decisions with KPIs, Policies, and Incentives
The alignment of Key Performance Indicators (KPIs), robust policies, and strategic incentives is fundamental in steering organisational efforts towards common goals.
KPIs: Quantifiable metrics that offer insights into performance, ensuring departments align with overarching objectives. For instance, KPIs targeting reduced lead times can harmonise strategies across sales and operations. Metrics like forecast accuracy further gauge the efficiency of APS and S&OP efforts.
Policies: These provide a consistent decision-making roadmap, ensuring uniform approaches across the board. A clear stock replenishment policy, for example, can guide operations in sync with sales forecasts, preventing overstock or stockouts.
Incentives: By incentivizing desired behaviors, like accurate demand forecasting by sales or wastage reduction by operations, businesses can naturally align teams with APS and S&OP objectives. These tailored programs ensure individual and team motivations are in harmony with organisational goals.
3. Centralised vs. Decentralised Structures: The Intricacies
Centralised Structure: This top-down approach ensures uniformity. Especially for APS and S&OP, it fosters standard operating procedures and consistent data interpretation, ensuring cohesive strategy execution across various branches or departments.
Decentralised Structure: Providing autonomy to individual units allows for tailored decision-making based on unique contexts. In diverse conglomerates, this ensures that APS and S&OP strategies can be customized to local market conditions.
4. Harnessing the Power of Cross-functional Teams
By breaking traditional silos, cross-functional teams can be the linchpin of collaborative success.
Bridging Gaps: Direct collaboration between, say, sales and operations can lead to more accurate demand forecasts. Adding finance into the mix ensures budgeting aligns with production or inventory strategies.
Effective Communication: Regular interactions mean stakeholders are continuously aligned, fostering seamless APS and S&OP processes.
5. Modern Hierarchies: Fluidity Over Rigidity
Traditional hierarchies are giving way to more adaptive structures, championing agility.
Flexible Hierarchies: A less rigid structure can facilitate quicker APS adjustments, crucial in industries subject to rapid changes.
Empowering Mid-level Managers: By equipping them with decision-making capacities, strategies can be more contextually relevant and implemented faster, especially on the S&OP front.
6. Marrying Technology with Organisational Structure
The integration of Advanced Planning Systems is about more than just adoption—it's about immersion.
Emergence of New Roles: Roles like Data Analysts or System Integration Specialists have become invaluable. Their input can guide strategic APS and S&OP directions.
Change Management: To ensure the smooth integration of new technologies, dedicated teams or individuals can be pivotal, guaranteeing alignment, training, and transition.
7. Prioritising Training and Development
Ensuring teams harness the full potential of APS and S&OP tools is crucial.
Customised Workshops: Address specific challenges, ensuring optimal utilisation of tools and strategies.
Ongoing Learning: As APS and S&OP evolve, continuous training keeps teams abreast of the latest techniques and best practices.
8. The Necessity of Periodic Reviews
Regular evaluations ensure structures and strategies remain relevant in dynamic markets.
Routine Assessments: Scheduled reviews can gauge the effectiveness of the organisational structure in relation to APS and S&OP.
Adaptive Strategies: Being ready to pivot or restructure based on these reviews ensures businesses stay ahead of industry trends and shifts.
Organisational structure, while often overlooked, plays a pivotal role in the successful implementation of Advanced Planning Systems and Sales & Operations Planning. By continuously evaluating and adjusting this structure—while aligning it with key metrics, policies, and incentives—businesses can unlock unparalleled operational success, ensuring they not only keep up with but set industry standards.
How carefully chosen demand planning and inventory optimisation system parameters and targets, can significantly bolster both profitability and customer satisfaction.
In the intricate maze of supply chain and logistics, navigating the realms of demand planning and inventory optimisation can often feel overwhelming. Yet, a strategic approach, informed by carefully chosen system parameters and targets, can significantly bolster both profitability and customer satisfaction.
1. The Art and Science of Demand Planning
At its core, Demand Planning isn't merely crunching numbers; it’s about foresight - predicting market dynamics and customer inclinations. Take a toy manufacturer as an example: By foreseeing a surge in demand during the festive Christmas season, they can upscale production in advance, avoiding potential stock-outs.
Key Considerations:
Forecast Period: A seasonal product, like swimwear, demands varying forecast rhythms – monthly during summer peaks and quarterly during quieter times.
Forecast Method: Stable demand products might fit the moving average model. In contrast, unpredictable items, with their ebbs and flows, may better align with exponential smoothing.
Demand Planning isn't just a matter of numbers but requires an intricate understanding of market dynamics, technological shifts, consumer sentiment, and geopolitical contexts. For example, Apple’s iPhone release strategies reflect more than just product readiness; they encapsulate global market sentiment, competition, and technological evolutions.
Deep Dives:
Macro Trends Analysis: Understanding the rise of green consumerism can determine the trajectories of companies producing sustainable vs. non-sustainable products.
Cannibalization Rates: For brands with diverse product line-ups, predicting how a new product might impact the sales of existing ones becomes crucial.
Predictive Analytics & Demand Sensing: Companies, akin to Netflix, harness algorithms that leverage historical data to anticipate future demand, allowing swift adjustments to market shifts.
2. Inventory Optimisation: Striking the Right Balance
Visualise a bustling local bakery. Overstocking risks waste due to perishable items, while understocking might mean turning away customers craving their favourite pastry.
Setting the Scales:
Service Level Targets: A high-end watch store, with its luxury clientele, might target a 98% service level. Yet, a local grocery might be content with 90%, factoring in the occasional stock-out of non-essentials.
Stock Turnover Rate: Fashion-forward boutiques, keen to refresh their summer offerings, will seek high turnover rates during the season.
Global brands like Tesla don't only count inventory. They're strategising around geopolitics, tariffs, regional promotions, and technological advancements.
Sharper Focus:
Multi-Echelon Inventory Systems & JIT: While multi-echelon systems holistically consider inventory at all locations, JIT methodologies aim to perfect timing, reducing lead times and holding costs.
3. Tailoring System Parameters for Demand Planning
The umbrella, a seemingly simple product, exemplifies the nuances of planning. Even in predominantly dry spells, retailers will maintain a modest stock – because who can truly predict a sudden downpour?
Advanced Adjustments:
Safety Stock Levels: Predicting the unpredictable, like the occasional rain during a dry spell, necessitates having safety stocks.
Lead Time: Compare a remote artisan crafting handmade goods to a local book distributor. The former's unique offerings will inherently come with elongated lead times.
From anticipating viewer preferences, like Netflix, to real-time adjustments using IoT, modern challenges demand modern solutions.
Innovative Leaps:
Segmentation & IoT in Inventory: Segmenting products based on demand variability can lead to custom strategies, while IoT-enabled smart shelves in retail can streamline stock management.
Machine Learning Models & Economic Order Quantity (EOQ): Machine learning refines forecasts by learning from past data patterns, and EOQ identifies the ideal order quantity for minimum costs.
4. Setting Precise Targets in Inventory Optimisation
From the crisp freshness of a salad to the timelessness of literature, different businesses have varied inventory rhythms.
Critical Calibrations:
Order Cycle Time: A bistro priding itself on freshness will likely have daily sourcing cycles. Conversely, a serene bookstore might restock on a more leisurely weekly or monthly cadence.
Minimum Order Quantity (MOQ): The boutique charm of custom furniture might come with a stipulation of at least 10 pieces, while a bulk fabric dealer could easily set their sights on a 500-meter MOQ.
The meteoric rise of companies like Tesla isn't solely due to product innovation but also stems from mastering demand prediction and inventory flow through advanced AI.
Innovative Leaps:
IoT (Internet of Things) in Inventory: Smart shelves in retail can notify when stock is low, integrating seamlessly with reorder systems.
Machine Learning Models: These continually refine forecasting accuracy by learning from past errors and adapting to new data patterns.
5. Embracing Technology: The Modern Alchemist’s Stone
Amazon, the retail behemoth, isn’t just thriving on scale but also on technological acumen. Their inventory precision, powered by avant-garde AI, predicts and adjusts to the fluctuating tides of global demand.
Tech Advantages:
Dynamic Reorder Points: Smart AI systems, noting a meteoric rise in rain boot searches, might proactively recalibrate stock levels, anticipating real-world demand spikes.
Alert Mechanisms: Stay ahead of the curve with instant notifications. Whether it's a celebrity endorsement or a viral trend, being in-the-know means being prepared.
6. The Importance of Periodic Reviews and Course Correction
The global pandemic serves as a poignant reminder. Businesses across the spectrum found themselves revisiting and often overhauling their demand and inventory strategies, accentuating the imperative of regular check-ins and agile adaptability.
In the dynamic world of supply chain management, mastery lies at the intersection of strategic planning, technological prowess, and adaptable foresight. Embracing these tenets ensures businesses remain robust, efficient, and perpetually in tune with market harmonics.
At trace., our supply chain team can help your business navigate the complexities of advanced planning systems. We understand that in today's fast-paced business environment, selecting the right planning system isn't just about keeping track of inventories but about holistically integrating every element of your supply chain to foster agility, responsiveness, and profitability. By leveraging our deep industry insights and analytical capabilities, we meticulously evaluate your unique business needs, processes, and challenges. We then juxtapose these findings against the capabilities of leading advanced planning systems in the market. The outcome? A tailored recommendation that ensures your chosen system is not just technically advanced, but also intricately aligned with your strategic objectives, ensuring a seamless fit and transformative results. With trace. by your side, you're not just investing in a tool, but a future-ready solution primed for growth and excellence.
In our rapidly evolving global trade landscape, the blueprint of your supply chain can be the deciding factor between business growth and stagnation. Proper supply chain design promotes efficiency, slashes expenses, and skyrockets customer satisfaction. However, an ineffective design might pave the way for operational snags, delays, and missed opportunities. This piece underscores the components of a sterling supply chain design, warns about the drawbacks of poor planning, and delves into how state-of-the-art solutions, such as GAINS, can guide businesses to strategic choices.
Pillars of Robust Supply Chain Design
Strategic Sync: Prime supply chains align seamlessly with overarching business goals, factoring in market trends, product range, and competitive contexts to match supply with demand.
Adaptability: Top-tier supply chains foresee and welcome change. They flex with market shifts, evolving customer tastes, and unforeseen disruptions, much like the unexpected tremors of the COVID-19 crisis.
Clear Oversight: Full transparency in the supply chain is pivotal for decisive action. By harnessing next-gen technology and analytics, businesses can monitor real-time metrics like inventory status, shipping updates, and consumption trends, ensuring swift reactions.
Teamwork and Integration: Stellar supply chains promote internal and external cooperation. Synchronised planning with partners across the chain – from suppliers to customers – optimises processes, quickens delivery, and trims costs.
Hedging Risks: Contingency planning is central to supply chain design. A foresight into potential threats and proactive disruption countermeasures, whether from natural calamities, political upheavals, or supplier snags, assures business endurance.
Laying the Groundwork for Supply Chain Excellence
To unlock a supply chain's fullest capabilities:
Dive deep into a meticulous analysis of the current system. Pinpoint challenges, lags, and enhancement opportunities.
Rope in a diverse team from all business sections. Their insights and feedback are invaluable for a 360° view of implications.
Invest in data and analytics. Solutions like GAINS pave the path for inventory optimisation and streamlined operations.
Overcoming Hurdles with Effective Supply Chain Design
A well-structured supply chain can address prevalent issues:
Curb inefficiencies and overspending.
Boost customer service and eliminate potential pitfalls that hurt consumer trust.
Refine inventory management, ensuring product availability, and meeting demands in a timely fashion.
Enhance visibility and foster better collaboration across the board.
Prioritise sustainability and reduce environmental footprints.
Perfect demand predictions, balancing inventory and consumption needs.
Uphold quality standards and stay compliant with industry regulations.
The Downfalls of Lackluster Supply Chain Design
A subpar supply chain can result in:
Spiraling costs and dwindling profit margins.
Misallocation of resources and assets.
Supply chain disturbances leading to dissatisfied customers.
Crafting Supply Chain Excellence
A well-orchestrated supply chain is the backbone of prosperous business operations. By emphasising strategy, adaptability, clear vision, teamwork, and risk anticipation, businesses can refine their operations, gaining a leg up on the competition. Steering clear of pitfalls and leveraging tools like GAINS can redefine your supply chain approach, setting the stage for lasting growth and success.
GAINS, with its cloud-powered solutions harnessing AI and machine learning, propels businesses forward with alacrity. Catering to varying scenarios, GAINS refines production, storage, and distribution choices, factoring in demand shifts, delivery windows, and resource limits. By shaping the ideal supply chain strategies, GAINS promises heightened efficiency and robustness.
The dynamics of procurement management have evolved significantly with technology's ever-growing influence. While traditional skills remain relevant, there's an undeniable need for modern, tech-savvy attributes. Let's explore these dimensions.
1. Deep Domain & Tech Knowledge:
Good Consultants:
Are well-versed in standard procurement processes and can handle software tools that streamline procurement.
Great Consultants:
Master both traditional practices and emerging technologies. They’re proficient in using AI-powered procurement tools, blockchain for transparent transactions, and predictive analytics to forecast market trends.
2. Digital Communication Skills:
Good Consultants:
Use emails and standard project management tools for communication.
Great Consultants:
Leverage state-of-the-art collaboration platforms, VR meetings, or AI-driven insights for more effective communication, ensuring alignment across globally dispersed teams.
3. Problem-Solving in the Digital Realm:
Good Consultants:
Recommend technology solutions when faced with tech-related challenges.
Great Consultants:
Anticipate tech pitfalls using data analytics, ensuring that digital transformation in procurement processes is smooth and risk-minimized.
4. Digital Relationship Management:
Good Consultants:
Maintain client relationships via regular updates and meetings.
Great Consultants:
Utilize CRM platforms powered by AI, chatbots for real-time client queries, and automated feedback systems to enhance and personalize client experiences.
5. Adaptability in a Tech Landscape:
Good Consultants:
Reactively adjust strategies when new tech trends emerge.
Great Consultants:
Proactively stay ahead, researching and integrating solutions like IoT for supply chain monitoring or machine learning for vendor analysis, ensuring clients are always ahead of the curve.
6. Ethics in the Digital World:
Good Consultants:
Adhere to privacy standards while handling digital tools.
Great Consultants:
Champion cybersecurity, ensuring that all digital interactions and data storages are encrypted, GDPR-compliant, and immune to potential breaches.
7. Continuous Tech-Driven Learning:
Good Consultants:
Update themselves with mainstream tech trends in procurement.
Great Consultants:
Immerse themselves in emerging tech worlds, from quantum computing potentials in procurement to harnessing AR/VR for immersive vendor experiences, ensuring they lead the tech-driven procurement transformation.
The differentiation between a good and a great procurement management consultant has become more pronounced in this tech era. As businesses grapple with the challenges and opportunities that digital transformation presents, the need for consultants who can bridge traditional knowledge with tech-savvy expertise becomes paramount.
If you're on the hunt for a consultant, look for one who not only understands your industry but is also a beacon of technological innovation. And for those building a career in procurement consultancy, remember: In this digital age, embracing technology isn't just an option; it's the key to greatness.
Contact us today, trace. your supply chain consulting partner.
Procurement
August 13, 2023
How Procurement Consultants Can Help Organisations Boost Service and Cost Outcomes
The Role of P2P Technologies and Spend Analytics in establishing competitive advantage
Procurement has emerged as a pivotal cornerstone in Australia's organisational landscape.
In today's competitive economy, every cent counts. This is where procurement consultants come in, enhancing the value chain from 'procure to pay' (P2P) and providing critical insights through spend analytics and optimisation.
Understanding Procure to Pay (P2P) Technologies
In the world of procurement, the procure-to-pay process is the journey of requesting, purchasing, receiving, and then paying for goods and services. The goal is to make this process as efficient, transparent, and cost-effective as possible.
P2P technologies streamline this entire cycle, offering several advantages:
Automation: Gone are the days of manual data entry, lost invoices, or missed payments. P2P systems automate mundane tasks, reducing human error and increasing efficiency.
Visibility: With P2P platforms, organisations gain an end-to-end view of their procurement process, aiding in better decision-making.
Supplier Management: Establish stronger relationships with vendors, track performance, and negotiate better deals.
Regulatory Compliance: Ensure all transactions adhere to Australian standards, reducing risks of non-compliance.
Cost Reduction: By eliminating inefficiencies and creating better negotiation platforms, businesses can significantly cut costs.
The Role of Spend Analytics & Optimisation
For Australian organisations to truly harness their spending power, they need to understand where their money is going. This is where spend analytics shines.
Data-driven Insights: Spend analytics offers a deep dive into procurement data, revealing patterns, bottlenecks, and opportunities.
Supplier Performance: Measure and assess supplier performance. By identifying top-performing suppliers, organisations can negotiate better terms and conditions.
Demand Forecasting: Predict future spending trends based on historical data, ensuring that procurement strategies are aligned with organisational needs.
Risk Management: Identify potential risks in the supply chain, be it geopolitical, environmental, or market-driven, allowing for proactive management.
Budget Management: With insights into spending patterns, organisations can better manage and allocate their budgets.
How Procurement Consultants Enhance Cost Outcomes
Hiring an expert always brings unique insights and strategies to the table. Australian organisations that invest in procurement consultants stand to gain:
Expertise: Consultants often bring industry-wide experience, offering best practices and tools tailored to the organisation's needs.
Technology Integration: With an array of P2P solutions available, consultants can help select and implement the most suitable platform.
Custom Spend Analysis: Tailored analysis offers actionable insights. Whether it's renegotiating contracts or adjusting procurement strategies, these insights drive real savings.
Continuous Improvement: Procurement doesn't end once a system is in place. Consultants provide ongoing support, ensuring the procurement process is always at its peak efficiency.
Embracing the Future of Procurement in Australia
As Australian organisations seek to remain competitive on the global stage, the role of streamlined procurement processes cannot be overstated. Leveraging P2P technologies and spend analytics, combined with the expertise of procurement consultants, paves the way for optimised cost outcomes.
If you're an organisation looking to redefine your procurement strategy, remember: It's not just about cutting costs—it's about creating value at every step of the way.
Australia’s Fast-Moving Consumer Goods (FMCG) sector is a hotbed of competition and innovation. Staying ahead requires not just agility but also the right tools. Integrated Business Planning (IBP) powered by advanced Sales & Operations Planning (S&OP) technologies, such as Kinaxis and GAINS Systems, has become the game-changer.
1. Manufacturing Efficiency: Powered by Cutting-Edge Tech
Streamlined Resource Allocation: Kinaxis offers real-time concurrent planning features, allowing businesses to align production seamlessly with demand forecasts, optimising resource deployment.
Reduced Lead Times: GAINS Systems, with its adaptive solutions, ensures quicker identification of supply chain anomalies, enabling businesses to adjust swiftly and reduce product lead times.
Minimised Downtime: Leveraging these technologies ensures that potential disruptions are forecasted and mitigated promptly, safeguarding manufacturing processes.
2. Elevating Service Levels: Tech-Driven Excellence
Demand Forecast Accuracy: Kinaxis's RapidResponse integrates sales data and market insights, sharpening demand predictions and ensuring product availability aligns with market needs.
Enhanced Responsiveness: The predictive analytics within GAINS Systems allow FMCG businesses to quickly adapt to shifting market landscapes, be it supply challenges or demand spikes.
Improved Customer Satisfaction: With consistent product availability and timely deliveries, powered by these advanced S&OP technologies, consumer trust reaches new heights.
3. Optimising Working Capital: Financial Tech Mastery
Inventory Reduction: GAINS Systems, known for its inventory optimisation solutions, ensures businesses avoid overstocking, effectively releasing tied-up capital.
Strategic Cash Flow Management: Kinaxis's integrated modules provide comprehensive visibility into sales, supply chain, and finances, paving the way for enhanced cash flow strategies.
Informed Investment Decisions: Harnessing data insights from these platforms, businesses can pinpoint growth areas and channel capital more effectively.
4. Lowering Total Cost to Serve: The S&OP Advantage
Supply Chain Harmony: Kinaxis and GAINS Systems ensure a cohesive supply chain operation, from raw material suppliers to end consumers, drastically cutting inefficiencies and costs.
Distribution Optimisation: These systems offer real-time data on market demands, enabling businesses to recalibrate distribution routes and reduce logistics overheads.
Strategic Product Focus: Insights from these technologies guide businesses towards high-margin products, leading to a favourable production shift and better profit margins.
The Australian FMCG landscape demands innovation, efficiency, and a consumer-centric approach. Integrated Business Planning, supercharged with leading S&OP technologies like Kinaxis and GAINS Systems, provides businesses with the toolkit to excel in this vibrant market.
As FMCG firms navigate Australia's ever-evolving consumer dynamics, embracing these tech solutions will position them at the forefront of operational excellence and customer satisfaction.
What Makes a Management Consultant Great vs. Good: The Shift Towards Specialisation
The difference between good and great management consultants lies in their ability to offer specialised, tailored solutions. Discover how Trace Consultants helps businesses succeed with a specialised approach across supply chain strategy, forecasting, warehouse design, and more.
Interview with Shanaka Jayasinghe: The Critical Role of BOH Logistics in Designing Sustainable Hospital Facilities
By considering these logistics principles, we can build hospital facilities that ensure consistency in patient care, clinical outcomes, and efficient operations for staff and patients.
Sustainable Changes to Operating Models to Support Large Scale Cost Reduction Programs: An Interview with James Allt-Graham, Partner of Trace Consultants
Discover sustainable strategies for cost reduction with insights from James Allt-Graham, Partner at Trace Consultants.
Australia's Defence Supply Chains: Acqusition may win battles, but only Sustainment can win a war.
Dive into the critical role of Australia's defence supply chains in ensuring military readiness. This blog explores the importance of sustainment over acquisition, delving into heavy asset management, MRO logistics, and the key attributes that secure a competitive edge in uncertain times. Learn how demand planning, service delivery, and innovative logistics execution keep the ADF battle-ready.
Interview with Tim Fagan: Navigating IT Transformation in Australian Businesses
Join us in a conversation with Tim Fagan on how Australian businesses are improving supply chain performance and reducing costs through tactical IT changes and best of breed systems.
Join industry expert Mathew Tolley in discussing how Australian businesses can fortify their supply chains through strategic n-tier assessments and resilience-building practices.
Interview with Emma Woodberry: Driving Sustainability Through Supply Chain Optimisation
Join Emma Woodberry in exploring how retailers and manufacturers can enhance sustainability and reduce transport costs through strategic supply chain optimisation.