Conflicting demands raise challenges and opportunities for Australian organisations and their supply chain leaders: Report finds
Sydney, 4 September 2018: Australasian Supply Chain Institute (ASCI), has today announced findings from a report – The State of Supply Chain Management– based on its annual member survey of supply chain managers which found that the self-assessment performance score of their supply chains against eight components scored an average of 52%.
According to Simon Smithers, Cloud ERP/SCM Solutions Regional Manager, Oracle, today’s supply chain managers are increasingly being asked by CEOs to be more strategic and help generate more value within the organisation. “We wanted to explore how ASCI members were faring amidst an environment where they’re expected to increase efficiencies; be innovative; achieve a competitive advantage; and deliver a better customer experience,” he said. “There is a vast opportunity for competitive advantage and it comes from within the supply chain.”
The eight components measured in the report were communication, automation, integration, compliance, analytics, collaboration, 3PLs and risk.
The report showed that integration with external parties (44%); data analysis for better decision making (46%); and cost to serve to meet consumer demands (via 3PLs – 44%) were identified as the pressure points largely affecting the score set by 195 Australian supply chain managers representing a wide range of industries, responsible for a wide remit of supply chain management. However their acute awareness of what’s possible – automation, big data, machine learning, blockchain and advanced analytics were identified as near-future possibilities, as Oracle’s best practice insights for each component in the report reflects.
“Supply chain managers are being pulled in both directions with competing agendas – the consumer side, where demands require new supply chain designs and omni-channel solutions, to the organisational side where cost reduction measures are necessary to meet targets,” said ASCI Member in a recent podcast interview, Dan Majman, Head of Supply Chain and Operations, Mercator. “Furthermore, supply chain managers are working closely with CEOs to assess risk and sustainable practices and provide strategic advice for the possibilities of technology for competitive advantage.”
Risk mitigation is a key driver of supply chain innovation in about 2/3 of respondent organisations in previous member surveys.This report found that incidents negatively affecting supply chains were happening frequently – over 40 times a year for 11% of the respondents (1-5 incidents for 43% and 6-10 incidents for 24%).
According to Scott Ryrie, CEO, Risk Management Institute of Australasia, “It’s not a surprise that there are so many incidents happening in supply chains. Just in time inventory is strongly favoured these days for cost reasons and fewer distribution centres/suppliers causes increased concentration risk. In addition, accurate information is required to analyse where the problems can occur in order to lower the risk of disruption,” he said.
The biggest challenges for ASCI Members in the coming year will be containing cost increases; improving systems so that there is better supply chain process visibility and, lastly, adapting to changes in customer expectation (demand and quality).
Drawing from its rich 50-year history as a not for profit member-based organisation in supply chain education, ASCI is a neutral entity positioning as the accreditation representation for the supply chain industry, making available the first evidence-based practitioner registrations for supply chain in Australia.
According to the ASCI President, Henry Brunekreef, “Supply chain as a domain reflects great diversity and many levels of stakeholders and yet it exists without professional accreditation. This report aims to measure the pulse of supply chain management in Australia, giving further cause to our mission for the professional status of supply chain managers,” he said.
The State of Supply Chain Management Report can be downloaded for free on request from the ASCI website.
Welcome to the digital era
From streamlining transportation networks to fine-tuning warehouse operations, companies rely on logistics solutions to manage their supply chains, accelerate fulfillment activities, and simplify a wide range of business processes. However, many of today’s logistics applications are based on rigid technologies that can’t adequately support the many interrelated
facets of global logistics management, enable supply chains that differentiate across segments, or properly manage costs to improve business outcomes. These legacy applications are expensive to operate, upgrade, and maintain. And because they are based on older technology, they lack the sophisticated mobile, social, and analytic capabilities that global companies need to increase visibility, optimise operations, and improve customer satisfaction across multiple channels.
In an effort to simplify logistics and orchestrate better business processes, some companies have implemented applications from multiple vendors, cobbling together functionality with costly integrations for essential activities such as global trade, transportation execution, inventory visibility, and order fulfilment. This lack of cohesion slows down processes and makes it difficult to nimbly adapt to changing market needs.
About Australasian Supply Chain Institute
Established in Australia in 1963 as a not for profit organisation, first as APICS and later as apicsAU, now trading as Australasian Supply Chain Institute (ASCI), is the only supply chain industry positioning itself as an accreditation body in Australasia supporting its members towards Professional and Practitioner Registration through education, training and continued professional development.
ASCI provides formal education programs, site visits, research, industry presentations and peer learning to its members with a range of opportunities to enrich and grow professional supply chain performance and competence. ASCI is a Premier Channel Partner of APICS and offers APICS certification programs in Australia, as well as other international supply chain management certifications provided by the Institute for Supply Management; and Demand Driven Institute. ASCI membership is available to individuals and provides access to educational programs, a network of industry professionals, real-world learning opportunities, resources and social media networks.
Henry Brunekreef, is President and Chair of the Board, Australasian Supply Chain Institute. Henry is a Director in the Australian Operations Advisory Group and the National Lead for Supply Chain for KPMG Australia, specialising in supply chain strategy development and Target Operating Model design. He brings over 20 years’ experience in supply chain strategy design & implementation, transformation change management, business planning and operations management. Henry has worked with clients in Europe, South Africa, North America and Australia. Sector experience includes retail, consumer products, industrial markets, life sciences, health, telco and mining.
Please visit www.asci.org.au for more information about our registrations, memberships and programs. For more information, or to arrange an interview, please contact Monique Fenech on 0439 320 152.