Supply Chain Insights | Special Edition

SupplyChainInsights Special Edition

Supply Chain Disruption Navigating the New Normal

Trends, Technology and Talent for APAC Leaders

Official Media Partner of

Sharing the news and events that engage and shape our industry

Supply Chain Insights

Welcome

About The Magazine Published quarterly to a circulation of 20,000 + industry professionals across Australia, New Zealand and the wider Asia-Pacific region, Supply Chain Insights Magazine is focused on helping you solve the complexities of today's supply chain.

The digital magazine highlights the latest trends, operational strategies, technology advancements and best practice within the logistics industry.

Welcome to Supply Chain Insights Magazine your primary source of industry news, focused on innovation, technology and knowledge-sharing in the logistics sector.

In this edition, our features editor Mel Stark looks at the issue of “Supply Chains Disruption”, focusing on the current crisis Australia is facing in the supply chain sector.

While much has been reported about the consumer impacts of supply chain disruption (lack of food in supermarkets/delivery delays), less is discussed around how this problem is impacting on and being worked through in the back-end by organisations.

We take a look at Mitre 10 selecting Zebra Technologies to optimise omnichannel customer experience, Manhattan Associates discusses a major research project looking at how Australian retail delivery methods

cause delays and customer dissatisfaction in a disrupted market.

The edition also includes details on why Australia Post recorded strong revenue growth but expects eCommerce to moderate, Bastian Consulting has tips for winning the supply chain talent wars, TMX discusses the key lessons learnt from the current supply chain crisis, while lowcode specialists Appian highlights how to improve your supply chain resilience through automation today.

We hope that you enjoy this edition of our magazine and look forward to hearing your feedback!

Design by Susu Studio For more information or story suggestions, please contact: editor@supplychain-insights.media For advertising enquiries, please contact: advertising@supplychain-insights.media Visit our website: www.supplychain-insights.media

SUPPLY CHAIN INSIGHTS

1

Contents

In This Issue

3

The Latest Insights

7

Manhattan Associates Named a Leader in Gartner® Magic QuadrantTM for WMS for the Fourteenth Consecutive Time

10

Why Now is the Time to Introduce Wearables in Your Warehouse

11

Rising above: Lessons Learnt from the Supply Chain Crisis

13

Australian Retail Delivery Methods Causing Delays & Customer Dissatisfaction in a Disrupted Market

15

Who (or What) will Save the Supply Chain?

17

Navigating the New Normal

23

Key Supply Chain Challenges all Retailers Need to be Aware of Today

25

New IBP Service to Deliver a Strategic Roadmap for Supply Chain Organisations

SUPPLY CHAIN INSIGHTS

27

How to Improve Your Supply Chain Resilience Through Automation Today

43

5 T&L Technology Tips to Drive Business Performance Today

29

Reimagining Customer Experience for a New Breed of Shopper

45

31

Australia Post Delivers Solid Revenue Growth, with eCommerce Expected to Moderate

The Road Towards a Greener Retail Supply Chain

49

Three Ways 5G Will Improve Your Supply Chain

32

Reid Fruits Experiences a Dramatic Decline in Product Counterfeiting

51

33

The War for Supply Chain Talent: The Bastian Consulting Perspective

Why ACRs Should Lead Your Warehouse Automation Project Today

52

35

4 Essential Steps to Optimise eCommerce Fulfilment for Workflow Efficiency

The Importance of Last-Mile Delivery in eCommerce

53

Enhance your Supply Chain and Boost your Customer Experience

37

De-risk your Operations and Reduce Shipping Delays this Peak Season

55

38

Australian Consumers Push for Contactless Shopping Following COVID-19

Efficient Returns Management Benefits the Customer, Retailer, and Environment

57

ASCL Awards Nominations Are Now Open

39

How Micro- Fulfilment is Re-shaping the Australian Supply Chain in 2021

59

41

Transforming Supply Chains is Not Just About the Physical, it’s About the Digital Too

Sigma Healthcare Supports Growth by Automating Operations with Dematic

2

News

News & Insights

Mitre 10 Selects Zebra Technologies and Reflexis Systems to Optimise Omnichannel Customer Experience

first interface to increase transparency and communication company-wide. Mitre 10’s field management team will use the mobile Q-Walk solution to streamline the on-site auditing process, enabling more efficient collaboration amongst team members and allowing them to spend more time with customers.

“We chose Reflexis Systems and Zebra Technologies to support our modernisation project due to its world-class Reflexis ONE™ platform and history of supporting large retailers across the globe,” said Andrea Scown, Chief Operating Officer, Mitre 10.

“We have confidence these advanced software solutions will facilitate superior

communication by creating a direct feedback loop between stores and our support centre, particularly around implementation of new initiatives. All of these details will make it easier to do business across the cooperative.”

The recent acquisition of Reflexis Systems by Zebra Technologies empowers teams with advanced software to drive value by simplifying communications, enhancing task execution and aligning labour with demand via AI-powered forecasting. ● Visit the Zebra Reflexis website here.

Reflexis Systems (now part of Zebra Technologies), a leading provider of intelligent workforce management and execution solutions for multi-site businesses, has announced that Mitre 10 New Zealand Ltd has selected its Real-Time Task Manager, Q-Walk and Mobility solutions to simplify work, enhance front-line communication and empower productivity across its stores.

Mitre 10, New Zealand’s largest home improvement retailer with 6,000 team members across 84 stores, will leverage RealTime Task Manager’s simplified processes, built-in intelligence and intuitive mobile-

SUPPLY CHAIN INSIGHTS

3

News

TMX to Deliver New facility for Universal Store

TradeCoast Central is located on the former Brisbane Airport site adjacent to the Gateway Arterial Motorway and is home to major industry retailers including EB Games, OzTrail, Chemist Warehouse.

According to Alice Barbery, Chief Executive Officer at Universal Store the leading fashion retailer has been through an

exceptional period of growth. She said, “This new facility in Brisbane will strengthen both our supply chain operation and fulfilment capacity while also creating a world-class corporate headquarters for our growing team. We’re delighted to be working with TMX on our supply chain and property project management requirements.”

Occupier demand in Brisbane has reached record heights over the past 12 months and as a result, Matthew Frazer-Ryan, Property Director at TMX is delighted to have secured this site for Universal Store. He said, “This new facility will ensure that Universal Store has the capacity and flexibility to not only support future business growth, but also continue to deliver on their sustainability goals and ambitions.”

Universal Store partnered with specialist supply chain and property consultancy TMX on procuring their new site and reviewing their supply chain operation. TMX secured a 10-year lease for the leading fashion retailer and will project manage the development on behalf of Universal Store. The new site will be fully operational from Q3 2022. ●

Director, Leigh Williams.

“Automated robots have already significantly sped up the picking and packing process for our customers. Our best in class warehousing and fulfilment systems mean online retailers can give their customers the best service possible — including same day delivery — in the most cost-effective way possible.”

This is eStore Logistics’ fourth fulfilment centre featuring the AI powered AMR picking technology and increases the fleet to over 330 robots. Utilising AMR technology since March 2020, eStore has been providing Victorian retailers with same day fulfilment for ecommerce orders placed as late as 4pm and same day delivery to their customers. eStore is now expanding this service offering

to retailers which hold their stock in NSW. The distribution centre has been designed to cater for a wide variety of products that are sold online. It will service retailers that have large bulky products such as furniture and appliances, wine retailers, and retailers that sell products which are suited to AMR including fashion and apparel, health and beauty, books and CD/DVD’s, sports and hobbies.

The new development comes at a unique time for the Australian ecommerce sector as we emerge from a prolonged period of lockdowns across the country which have added to the growing demand for ecommerce. eStore Logistics partnered with specialist supply chain and property consultancy TMX on securing this new facility. ●

Universal Store, the leading Australian youth fashion retailer, has signed a 10 year lease for a new distribution centre and national headquarters in Brisbane, Queensland.

Situated at TradeCoast Central, in Eagle Farm in Brisbane’s north-east, Universal Store’s new facility features a 5,000 sqm high bay warehouse and 2,200 sqm corporate office headquarters.

eStore Logistics Opens Autonomous Sydney Fulfilment Centre eCommerce fulfilment provider, eStore Logistics, has opened its eighth fulfilment centre taking its total warehousing footprint to around 120,000sqm across Australia.

The new fulfillment centre is located in Bankstown, Sydney and is the organisations second largest fulfilment centre overall at 19,310 sqm.

The $75 million warehouse will be equipped with 77 AI powered Autonomous Mobile Robots (AMRs) working alongside expert staff to create the smoothest and most efficient fulfilment solution possible. eStore plans to expand to 120 AMRs as a mezzanine level will be added to the warehouse by the end of 2022, enabling automated picking from AMR’s across multiple storeys using a mezzanine platform – the first of its kind in Australia.

“The world has changed a lot over the last 18 months and ecommerce has been completely transformed. Consumers are demanding faster and more flexible deliveries, and we’ve been scaling our business to meet the growing demand, by providing our customers with state of the art fulfilment and warehousing solutions,” said eStore Logistics Founder & Managing

SUPPLY CHAIN INSIGHTS

4

News

Super Retail Group Reduces Fulfilment Costs with the Flick of a Switch Online sales of home fitness and outdoor leisure exploded in Australia in 2020, resulting in Super Retail Group increasing eCommerce sales by 87 percent to $237 million in the second half of 2020.

In an effort to meet this surge in online orders and meet their customer promise around delivery, the company fast-tracked the roll-out of a new omnichannel solution with Manhattan Associates in an innovative, socially distanced manner.

SUPPLY CHAIN INSIGHTS

Super Retail Group’s previous online order fulfilment system allocated orders based on proximity to customers, without considering the true cost to fulfil. As a result, more than 20 percent of home delivery orders were shipped interstate at a higher cost, despite the company having the items in stock in the state. Additionally, more than 15 percent of home delivery orders were split into multiple packages, which also increased fulfilment costs.

“When COVID-19 fully hit and many businesses were consolidating projects, we actually sped up the deployment of Manhattan Active Omni, and it now offers us a single window of visibility and availability of stock across our entire supply chain network.” explained Brian Townshend, Super Retail Group’s general manager of omni-retail.

“The cloud-based Manhattan Active Omni solution is highly adaptable and responsive. Even implementing it virtually and operating throughout the challenges of COVID-19, the new system has been able to accommodate major order and fulfilment routing changes within minutes.

With the new system, we were able to change our fulfilment logic and immediately reduce fulfilment costs – even achieving our 12-month goal on day one, which is a remarkable result,” finished Townshend.

The Manhattan Active Omni Solution is highly responsive and can accommodate major order and fulfilment changes within minutes. This was critical for Super Retail Group when the state of Victoria went into a COVID-19 lockdown in 2020, allowing the company to change its fulfilment logic so that orders that were going to be shipped out of Victoria were stopped and re-allocated to other sites within minutes. The new system also allows Super Retail Group to deploy a ‘site outage’ action for both its DCs and stores, so that if any site is unable to trade (such as due to a positive COVID-19 test or other reasons) the company can quickly close that site and redirect order activity to be fulfilled elsewhere.

“We would like to congratulate Super Retail Group on the great work and results they have achieved during a challenging 2020. We know at this particular time just how important it is for this leading Australasian retailer to be able to get the best local and international brands to its customers as quickly as possible, whether it’s via delivery or click and collect,” added Raghav Sibal, Managing Director of Australia and New Zealand for Manhattan Associates.

“To roll out Manhattan Active Omni virtually during COVID-19 and then immediately see these excellent results is testament to not only the power of our cloud solution, but also the expertise of our team, as well as the strong partnership between the two companies,” ended Sibal. ●

5

News

Munro Footwear Group Secures Automated $50 million Facility to Support Booming Sales Major Australian retailer and wholesaler of footwear, Munro Footwear Group (Munro), has committed to a new $50 million state-of-the-art distribution centre at the strategically located circa $600 million MidWest Logistics Hub in Truganina, Victoria.

Following a thorough and complete review of its warehouse and distribution functions, Munro has made the strategic decision to optimise, integrate and consolidate its domestic supply chain.

To enable this integration, Munro will be relocating from its current operations in Thornbury, Victoria into a new purpose-built 26,354 sqm national distribution centre for their in-store and online operations, on a total site area of 49,815 sqm.

“We are on a strong growth trajectory and have made a major investment in optimising our supply chain operations to support our increasing in-store and online sales. This new facility is a key initiative in our multi-year growth plan to expand our

SUPPLY CHAIN INSIGHTS

business, optimise our customer experience and strengthen our distribution capability, particularly to support online sales,” said Marcus Bartlett, chief operating officer at Munro Footwear Group.

The state-of-the-art distribution centre located at Founders Place, Truganina, will feature a significant leading-edge Autonomous Mobile Robot (AMR) solution with a capacity to store over 1.2 million units, which will absorb volumes currently supported by external third-party logistics providers. The facility has also been designed to achieve a minimum 5-Star Green Star rating.

The new AMR solution will increase picking speed and accuracy creating greater

productivity and efficiency in operations, while reducing lead times to customers. This new facility will assist in optimising inventory levels, integration with transport carriers and enhancing customer experience across the group’s 260 plus store network and most importantly the 11 eCommerce sites, which have been growing at 25% per annum.

Munro partnered with supply chain and property consultancy TMX to review their supply chain network, design their new operations with an automated solution and run the property procurement process. TMX secured a 10-year lease for Munro with Charter Hall and will now project manage the development of the new facility on behalf of Munro alongside Charter Hall.

“This new facility will have one of the largest AMR goods-to-person deployments in Australia and is an exciting milestone for Munro. We have had a long-term partnership with Munro and through that, we’re able to comprehensively understand their business, design an optimised operating solution and procure the automation and property requirement.

Munro has gone through a major boost in sales from the recent retail explosion, so our team has designed this new facility to flexibly support Munro’s dynamic growth from both in-store and online sales,” said Sam Dellios, director at TMX. The site is expected to be operational in the second half of 2022. ●

6

Industry Updates

Manhattan Associates Named a Leader in Gartner® Magic Quadrant™ for WMS for the Fourteenth Consecutive Time Manhattan has the industry’s most robust WMS and deepest and broadest set of supply chain execution solutions Manhattan Associates has been named a Leader in Gartner Magic Quadrant for Warehouse Management Systems for the 14th time in a row. The report evaluated 17 vendors this year and Manhattan once again placed highest in its ability to execute and furthest right on completeness of vision.

Manhattan has been named a Leader in every Gartner WMS Magic Quadrant since the report’s inception in 2006.

The company is also a trailblazer in unifying warehouse, labour management, automation, transportation and yard management into a comprehensive supply chain execution solution.

Backed by the industry’s mostexperienced services and support teams, Manhattan’s WMS solutions are gamechangers for any company operating in complex, demanding and unpredictable environments.

“We are delighted to once again be named a Leader in Warehouse Management Solutions by Gartner Research,” said Brian Kinsella, senior vice president of Product Management for Manhattan Associates.

“We consider our position to reflect a combination of our breakthrough Manhattan Active technology platform and our industry leading functional innovation.

The opportunity to collaborate with so many of the world’s best supply chain practitioners allows us to enhance Manhattan Active WM faster than ever.”

Manhattan Active® Warehouse Management is cloud-native and built on a microservices architecture to meet the challenges of today and tomorrow. It advances warehouse operations beyond basic picking, packing and shipping to create and flawlessly execute a hyperflow of goods and information through the distribution centre. Infused with behavioural science and gamification, it creates more compelling and rewarding experiences for warehouse associates. ●

SUPPLY CHAIN INSIGHTS

7

Ready to transform your business?

World-class digital and physical supply chain solutions that transform businesses.

Find out how we can help drive efficiencies across your supply chain today.

Start your transformation today, visit www.tmx.global P:+61 3 9908 3040 SUPPLY CHAIN INSIGHTS

E: enquiries@tmx.global 9

News

Why Now is the Time to Introduce Wearables in Your Warehouse

experiencing a decline in worker efficiency, order accuracy and customer satisfaction because of the unpredictability and overload of orders.

Simply put: workers who have to carry devices in hand quickly become disadvantaged, and both customer satisfaction and sales suffer as a result.

This is why wearables are now the go-to form factor for a multitude of supply chain use cases. They help to enhance workers’ capabilities, which in turn accelerates order fulfilment for customers.

In order for an organisation’s workers to stay at the top of their game and process as many orders as possible per shift (especially in high-pressure situations), they need a wearable that has: 1. A physical keypad option for manual inputs in addition to a touch display that automatically adjusts its sensitivity for bare and gloved hands.

WRITTEN BY ROYSTON PHUA VERTICAL PRACTICE LEAD APAC SUPPLY CHAIN, ZEBRA TECHNOLOGIES

With supply chain disruption at an all-time high and labour in very short supply, your warehouse staff should have all the tools they need to work as productively and comfortably as possible.

Time is absolutely critical in a warehouse environment, and that has become even more important in times of significant disruption like the COVID-19 pandemic, where online orders are piling up, and extensive delivery delays are occurring due to a short supply of labour. Given the roundthe-clock nature of warehouse operations, it is extremely important that organisations choose the right tools for each worker and workflow. Trying to force-fit a generalpurpose device into an application-specific environment can introduce unnecessary risk and lead to potential productivity declines, impacting an organisation’s ability to keep the orders flowing.

We know that handheld enterprise mobile computers can enable front-line workers to scan barcodes and complete tasks more efficiently. However, the continued growth of e-Commerce coupled with the effects of COVID-19 restrictions requires workers

SUPPLY CHAIN INSIGHTS

to handle more goods, process more orders and count inventory faster than ever before, all while dealing with staff shortages.

Demand for a purposebuilt wearable mobile computer that maximises productivity in hands-free workflows has never been greater.

As recently as 12 months ago, it was quite possible that only a few select workers required a wearable computer to do their jobs most effectively – perhaps those who were frequently picking up or breaking down pallets or loading trailers and needed both hands to lift packages. Now, even workers picking goods in the front of the warehouse need a hands-free data capture solution if they are to zoom through the high volume of online orders received each day.

Inventory put away is now an aroundthe-clock operation, as everyone rushes to restock shelves with essentials and luxuries alike to satisfy burgeoning demand.

Even with team members putting forth the increased effort, many organisations have reported to Zebra that they are still

2. All-shift power and a hot swap battery that prevents loss of application data in the event of inadvertent battery removal.

3. An extreme temperature tolerance enabling the devices to remain operational, whether it’s 30 degrees Celsius or -30 degrees.

4. Multiple communications ports for corded ring scanners and wired headsets, as well as other peripherals, such as headmounted displays and ring scanners.

5. Bluetooth connectivity and near-field communication (NFC) pairing options to sync with any Bluetooth or NFCenabled devices.

6. A host of accessory options that allow for the customisation and safe use of shared devices.

7. A solution that boasts a long lifecycle so that you can minimise operational disruptions and maximise your ROI. Giving your workers the right tools for the task at hand is the key to keeping the current supply chain disruption from crippling your operations. ● Discover how Zebra’s range of wearable computers enhance workers’ productivity here.

10

Analysis

Rising above: Lessons Learnt from the Supply Chain Crisis

Freight disruptions, coupled with sharp changes in consumer behaviour and an influx of businesses pivoting to online in response, were some of the major challenges the industry faced at the height of the COVID-19 pandemic.

Two years into the pandemic, tides are finally starting to turn, with businesses starting to rebound from the challenges of 2020.

We've seen that forecasting is critical to the industry's long-term recovery, which is the driver behind the TMX State of the Industry reports.

In developing last year's report, Building Back Better from the Pandemic: A Look into Supply Chains in the New Normal, TMX surveyed more than 250 business leaders in the fast-moving consumer goods, logistics, eCommerce, retail, and manufacturing industries across Southeast Asia.

We also conducted in-depth interviews with six supply chain experts across Singapore, Malaysia, Thailand, Vietnam, and Indonesia.

Through this report, we hoped to shed light on the seismic shifts of the past year, how businesses and industry leaders in the region responded, and what their plans are for building back stronger.

Among the many shifts that have taken place, the

SUPPLY CHAIN INSIGHTS

industry has seen the adoption of omnichannel approaches following an eCommerce boom, the diversification of value chains, and an increased focus on employee upskilling.

When it comes to moving forward from situations as unfavourable as a pandemic, the report also highlights the importance of increasing digitalisation across the supply chain as well as the urgency of introducing more sustainable business models.

It is no longer news that the pandemic threw unprecedented challenges at the industry, pushing supply chains to their breaking points amid fastchanging consumer demands. However, insights from the report highlight some of the industry’s silver linings, like the valuable lessons businesses learnt in strengthening and reconfiguring their supply chains and operations, rising from the past two years stronger than before.

How businesses are forging ahead Shortly after the pandemic hit, businesses realised they needed to change the way they did things if they wanted to ride out the storm and come through

11

the other end intact. The TMX report reveals that adopting an omnichannel approach was one of the most important changes businesses made.

Research indicates the eCommerce boom that escalated during the pandemic is here to stay.

The report reveals that 40 per cent of business leaders have already invested in omnichannel strategies as a way to ‘future proof’ their businesses, and nearly half (46 per cent) have indicated that a comprehensive omnichannel strategy is a key business priority in the next three to five years.

While this is in line with the expectation that eCommerce is here to stay, businesses also recognise that consumers will eventually return to traditional brick-and-mortar shopping as social restrictions ease.

Having an omnichannel approach allows businesses to ensure a consistent presence, or in other words – show up both online and offline – offering a seamless customer journey.

Secondly, whether it is through third-party logistics providers (3PL), vendors, or shipping routes, the report also indicated the importance of diversifying supply chains to manage future shocks and maintain a more resilient supplier base. Through diversification, businesses will at the very least have alternative back-up providers to support them when disruptions occur. Over half (52 per cent) of the businesses surveyed have started to diversify their supplier base, with another 35 per cent actively assessing their reliance on third-party vendors.

Finally, industry players also acknowledged the importance of prioritising their workforce’s wellbeing and upskilling talent in preparation for future disruptions. This includes taking measures to optimise employee retention, such as keeping them engaged and their skills relevant.

With resilience in mind, businesses are looking to hire people who take the initiative and exhibit leadership and critical thinking skills, which are crucial to navigating periods of disruption and uncertainty.

Key trends gaining traction in a post-pandemic era Despite the challenges from the past two years and many more unknowns to come, industry leaders are rising to the challenge of preparing their businesses for what lies ahead. Now equipped with the major lessons learnt from the pandemic, they are getting ahead of industry trends and exploring various ways

SUPPLY CHAIN INSIGHTS

to gear up for a post-pandemic future.

One of the key emerging trends is the continued acceleration of digitalisation.

The industry has already seen increased digitalisation across business operations and the supply chain, but according to the report, businesses leaders are expected to build on this wave. To future proof against unexpected shocks, an organisation’s physical and digital supply chain will now require interconnected systems that provide full end-to-end visibility, enabling real-time databacked decision-making that allows businesses to be flexible and responsive.

Sustainability is also moving up the agenda, according to industry leaders surveyed.

Amid the challenges of the pandemic, consumers have become more socially and environmentally conscious and are voting with their wallets, supporting brands with ethical practices.

According to the report, businesses have acknowledged how Environmental, Social and Governance (ESG) commitments are no longer an option but are a necessity to establish a social licence to operate.

Onwards and upwards Through the many key takeaways from another year spent in uncertainty and instability, there has been one striking difference from the first year the pandemic hit: the mindset shift that has taken place within the industry.

Business leaders have embraced an attitude of flexibility and started to think outside the box for solutions to not only salvage and rebuild their businesses, but also to thrive during such trying times. By turning the situation on its head, businesses are now able to identify the areas in which improvements are needed for their businesses and supply chains to become more resilient.

Businesses are now better prepared to overcome any potential disruptions like the new, ever-evolving Omicron variant. The report shows that no matter the new challenge, leaders have and will continue to take action that will enable their businesses and the industry as a whole to thrive in the new normal and build back stronger than before. ● Click here to read the full report: Industry Report 2021 | Building Back from the Pandemic - TMX

12

Industry Update

Australian Retail Delivery Methods Causing Delays & Customer Dissatisfaction in a Disrupted Market Retail supply chains are under greater pressure than ever before due to the ongoing impacts of COVID-19, with 76% of Australian shoppers indicating that they had experienced unusual delays in receiving goods they ordered online in the last three months.

New research undertaken by Manhattan Associates has identified that a major source of customer dissatisfaction and delays in receiving goods today was multiple-shipments for single orders. Sixtysix per cent of shoppers stated that items commonly arrived in separate deliveries when ordering online – even though they ordered all their goods in one shop. This is despite 70% of shoppers saying that they would prefer to receive goods at a later date if that meant everything they ordered arrived in one delivery/shipment.

“Given the pressure that Australian retailers are under to meet customer demands in a challenging market, it is understandable that brands want to get their goods to customers as fast as possible, even if this means that orders arrive in multiple shipments, with goods from one order coming in different deliveries on different dates,” said Raghav Sibal, Managing Director, ANZ, Manhattan Associates. “However, new research shows that this approach is actually causing friction with the customer, many of whom would prefer options to receive their goods in one delivery.”

contacting the retailer thinking there was a problem (such as their purchase not being accurately recorded) with their order.

“Such is the issue of online delivery delays and multiple-shipments today that 75% of shoppers said that the delivery reliability of a retailer would impact on their willingness to shop with them in the future,” said Raghav.

“Not only is the issue of multiple shipments for a single order causing confusion and frustration amongst Australian shoppers and impacting on the reputation of the retail brand, but it also comes at a real financial cost to retailers. Every time an online order is split over two or three different shipments, there is an extra cost to the business for handling, packaging, and transport, which can all add up at a time when many retailers are already under financial pressure.”

Only 50% of shoppers were contacted by the retailer when their delivery was

delayed or notified that their delivery would come over multiple shipments, and an overwhelming 67% feel that the business could have better managed the process around communicating likely delays in receiving goods.

“In a disrupted operating environment, retailers must not only improve their communication with customers, but they must also intelligently manage order fulfilment across their complete omnichannel network to minimise multiple-shipment issues and meet shopper expectations. Retailers need to manage stock across distribution centres, stores, and transportation, along with optimising order routing to reduce costs while ensuring customer promises are always kept,” said Raghav. ● To learn more, please click here.

Alarmingly, 41% of shoppers indicated that they waited on average more than one week between their first delivery and subsequent other deliveries of goods from the one order.

This has led to confusion and frustration amongst consumers, with 63% of shoppers

SUPPLY CHAIN INSIGHTS

13

Solve your employees' biggest problem, so they can solve yours.

Labour shortages across the supply chain are hitting hard. Empower your staff to be their best by simplifying communication, streamlining task management and optimising labour scheduling.

ZEBRA AD Reflexis ONE™ real time work platform helps businesses transform their operations across multiple locations: Real-time task management Simplify communications between staff Optimise labour forecasting, budgeting and scheduling AI-powered for informed decision making Advanced analytics and reporting

LEARN MORE SUPPLY CHAIN INSIGHTS

14

Analysis

Who (or What) will Save the Supply Chain?

It is no secret that there is friction at several stages of the supply chain right now, which is contributing to the vast shortages and bottlenecks we are currently seeing.

The biggest issue is that not one piece of the supply chain is breaking right now; it is the entire structure.

This makes it difficult to pinpoint one area of the supply chain and resolve the issue. While the supply chain was highly efficient prior to the pandemic, it was running based on a predictable environment.

The changes brought on by the global pandemic were unprecedented, making it difficult for supply chain operators to predict demand. Without any historical data or similar disruptions of such a large scale, companies had to make quick adjustments and, in many cases, did so in such a conservative way that manufacturing started to slow down as a result.

Now that we are beginning to move out of the pandemic, at least from an economic perspective, demand is accelerating so quickly that manufacturers are struggling to keep up. It will take some time for the supply chain to recover from the changes brought on by this pandemic as operators adjust to what is needed from a material, labour, and transport perspective. So, what is happening behind the scenes and on the front lines to keep things moving?

SUPPLY CHAIN INSIGHTS

Smart warehouses front-andcentre in the customer service race As consumers go online to purchase everything from groceries and dry goods to gadgets, they expect orders to arrive tomorrow or even the same day, or within a few hours, the warehouse is now frontand-centre in the customer service race. Warehouse operations teams are rethinking everything – from how the floor is organised, how goods move from intake to shipping and labour strategies. Driven by the need for real change, robots and automation are no longer a curiosity or a future investment that needs to be piloted for years. We are seeing more and more teams boldly moving ahead with implementations, recognising that robots and automation are essential to the demand-driven model for warehousing operations that will be born from this disruption.

Visibility and flexibility is key On the supply side, inbound materials availability, supplier response time, materials and transportation costs are dynamic and unpredictable. In response, organisations are prioritising visibility and flexibility in their technology investments and their operational designs. They are implementing newer generations of intelligent mobile robots to make physical automation accessible to smaller facilities and inherently less risky and more flexible than more traditional alternatives. They are recognising that

15

necessary to marry internal and external data (i.e., promotions, pricing, product attributes, competitive activity, local events, social media, mobility data).

This produces insights and predicts highly granular forecasts that are significantly more accurate than current traditional practices. This increase in accuracy reduces uncertainty and provides a confident signal to plan, source, make, and deliver (the individual ‘legs’ of the supply chain). And it’s all built from the lens of the customer, to serve the customer best which is essential in these times of uncertainty to retain and grow revenue.

Open and honest communication is key Full supply chain visibility enables all participants to ‘keep the promise' and deliver goods to customers on time. Although the situation is far from perfect with delays and looming shortages, organisations can proactively and openly communicate their inventory levels, location of goods, delivery times and schedule updates to customers to create a sense of transparency. Customers will likely not mind ordering an item in advance to allow for longer lead times. Clear, honest communication based on full inventory visibility will make all the difference in these trying times.

To learn more, please click here.

they must provide workers with tools that are easy to learn, easy to use and ergonomically designed if they are to attract and retain labour, which is critical to their performance. These tools include wearable computers and scanners. Workers have shown that they also appreciate when mechanised solutions like autonomous mobile robots (AMR) take a lot of the physical effort out of their workday.

Minimising the impact of shipping delays If you take a step back, the supply chain is a system of delays. Meaning there is lead time involved from raw material sourcing, manufacturing and the delivery of the finished product that can be expressed in days, weeks, or months for each ‘leg’ in the chain. The notion of delays and dependencies of one ‘leg’ on another, many of which have been exacerbated due to the pandemic and recent supply chain disruptions, creates demand uncertainty and poor customer service.

Manufacturers and retailers need to get closer to the source of customer demand – at the postcode or store level.

To accomplish that goal, advanced analytical solutions such as AI-based forecasting are

SUPPLY CHAIN INSIGHTS

Putting workers' needs first The labour shortage is no secret. The pain is felt in every industry, especially amongst frontline employees or rather our front-line heroes.

Organisations need to identify demand proactively to ensure they can have the right capacity available to pick, pack, and ship all desired products. But it is not as easy as simply identifying this critical requirement.

There is a larger element of understanding your workforce, having uncomfortable conversations about challenging prior ways of working and finding new solutions that will build on workers' capabilities and motivate them to succeed.

Outside of ensuring that a competitive wage is being offered, companies should be looking at ways to have more flexible hours, better humanistic design offerings, and revaluating overall benefits offered to these employees. We owe it to these heroes to take a hard look at our past offerings and ways of working to ensure they really align with our values and to what our employees value most. ●

16

Feature

Navigating the New Normal SUPPLY CHAIN INSIGHTS DISRUPTION FEATURE

Shipping constraints, labour shortages, and stock availability have dominated the supply chain conversation for the past two years. But are we about to turn a corner?

While we might be getting sick of the term “supply chain disruption”, as we head into the second quarter of 2022 and with one of the most challenging peak periods in history behind us, businesses are still grappling with many issues caused by the onset of the pandemic.

Shipping constraints, labour shortages and stock availability issues have become the norm, and many organisations have made the dramatic shift from a just-in-time strategy to a just-in-case mindset.

At the consumer level, most of us have gotten used to not being able to secure our favourite goods in the weekly grocery shop, and at a global level, the longstanding semiconductor shortage is still crippling the automotive and technology manufacturing industry.

Leading up to Christmas, there was large-scale anxiety around shortages of festive consumer goods, as the supply chain industry was once again thrust into the spotlight.

SUPPLY CHAIN INSIGHTS

While supply chain disruption continues to dominate the mainstream media – two years on, the question now is: what do the next 12 months look like and will we ever see a return to pre-pandemic days?

Supply Chain Insights takes a deep dive into the disruption and asks leaders from across the industry what challenges we’re likely to face in the year ahead.

The big inventory issue According to Travis Erridge, Co-Founder and Chief Executive Officer at TMX, Asia-Pacific’s leading business transformation consultancy, businesses are still holding a huge amount of inventory.

“We’re seeing massive amounts of inventory kept in storage. Australia is at maximum capacity, and most businesses are carrying a lot more product than they normally would,” he tells Supply Chain Insights.

17

SUPPLY CHAIN INSIGHTS

18

Feature

“Retailers are still not sure about the split between eCommerce and bricks and mortar, so they are still finding that their inventory is often in the wrong places,” ALEX MACPHERSON, DIRECTOR OF SOLUTION CONSULTING & ACCOUNT MANAGEMENT, MANHATTAN ASSOCIATES

Coming into the peak period last year, organisations were worried about missing out on sales so, they ramped up their stock holding. “People went crazy getting inventory in, and some of that stock is only just arriving in Australia now,” Travis says.

Furthermore, retailers have had issues with inventory in the wrong place, at the wrong time, and as we move further into the year, businesses have to grapple with the issue of storing seasonal or obsolete stock.

Alex MacPherson, Director of Solution Consulting and Account Management at Manhattan Associates, a leading global provider of supply chain software, says as a result of businesses holding more stock than usual, there’s been a lot of markdowns and challenges around where to hold stock and when.

“Retailers are still not sure about the split between eCommerce and bricks and mortar, so they are still finding that their inventory is often in the wrong places,” he says.

According to Darren Bretherton, Senior Business Development Manager at Zebra Technologies, a world leader in innovative digital solutions, hardware, and software; holding excessive amounts of stock not only has implications from a property and operational point of view, but this has a significant impact on short term cash positions for retailers.

“Carrying large amounts of seasonal inventory means that working capital is severely constrained,” he says.

While pre-pandemic, just-in-time lean methods may not be acceptable in today’s environment, as organisations look to plan for the post-pandemic world, TMX’s Travis Erridge says holding huge amounts of inventory is not the answer and asks:

“How can you make strategic decisions about the future of your business when all your capital is sitting in inventory?”

Looking ahead, businesses need to start looking to long-term solutions about what level of inventory is acceptable in a post-pandemic world. According to Manhattan Associates Alex MacPherson, while supply chain wasn’t previously on many Boards’ agendas, it is now, and will continue to be so:

SUPPLY CHAIN INSIGHTS

19

“We’re seeing massive amounts of inventory kept in storage. Australia is at maximum capacity, and most businesses are carrying a lot more product than they normally would,” TRAVIS ERRIDGE, CO-FOUNDER & CHIEF EXECUTIVE OFFICER, TMX

“C-suites around the world are going to start to ask: why are we holding so much stock?”

Widespread labour shortage “Supply chain challenges are still very much exasperated by the labour shortage caused by the pandemic,” Darren Bretherton from Zebra Technologies tells Supply Chain Insights.

The restriction of movement and COVID-19 isolation rules are still having a major impact on the supply chain and retail industry, and according to Travis Erridge, this is unlikely to go away any time soon.

“While there could be some labour relief as people start to travel and move around the world again, one thing the pandemic has done is show that people do not want to do hard, labour-intensive work – that’s the reality this industry is dealing with,” he says.

This issue isn’t only felt in the supply chain space, but also in retail and according to Alex MacPherson,

93% of retailers were worried about the labour shortage in 2021.

“One of the challenges for the supply chain is that we have to make the industry more attractive for people to work in. We have to promote professional development opportunities and show that there is a career path in this sector. If we don’t tackle these issues now, we’re going to be faced with serious shortages down the track,” he says.

While the supply chain industry acknowledges it has an issue with labour availability, Darren Bretherton says there is an opportunity for organisations to utilise technology to help manage this issue.

“Workforce management software can help find replacement workers at short notice. Organisations can use these tools to find available resources urgently and continue to deliver goods and services on time,” Darren says.

However, most agree that solving these issues with labour is a short-term fix. “Short-term, labour hungry processes come at a significant cost and do not offer a long-term answer. The labour shortage will continue, so businesses need to look further

SUPPLY CHAIN INSIGHTS

ahead and start to invest in automation,” TMX’s Travis Erridge says.

For Alex, collaborative robots, or cobots, will play a central role in solving the labour availability issue.

“Cobots will be key to offering warehouse operators more variety in their work and therefore make roles in this industry more attractive,” he says.

Alleviating the short-term pain with AI and Machine Learning While some of the high-level long-term solutions take five to 10 years of planning, some solutions which can help to alleviate some of the pain caused by the large-scale disruption in the supply chain are available now.

“Right now, I would say it’s all about optimising business as usual."

"Get rid of obsolete stock, rationalise inventory holdings and digitise your supply chain so you can utilise real-time decision making."

"Businesses cannot rely on the past 12 months of data to accurately predict the next 12 months, so they need to use predictive and machine learning to help with sales forecasting based on real-time patterns,” Travis Erridge says.

Zebra Technologies Darren Bretherton agrees and says that AI tools can help companies predict future demand. “Forecasting will have to start utilising AI and Machine Learning because we simply cannot rely on the past two years of data,” he says.

Utilising AI and digitalisation are a quick fixes that organisations can adopt to start reaping the benefits almost immediately. “The quickest to digitise and utilise existing information to make realtime decisions is going to win. This is an immediate thing you can do right now. Some of the other stuff is a lot more complex, with long lead times. This is why it’s important to look at your existing data and use it to make decisions that will help you get through this turbulent time,” Travis Erridge says.

20

Feature

"If we don’t tackle these issues now, we’re going to be faced with serious shortages down the track.”

SUPPLY CHAIN INSIGHTS

21

“Supply chain challenges are still very much exasperated by the labour shortage caused by the pandemic,” DARREN BRETHERTON, ZEBRA TECHNOLOGIES

A positive outlook While the landscape continues to be turbulent and disruption has continued into the first few months of this year, the industry may be turning a corner.

“At TMX, we have a view that the disruption of containers and shipping availability is likely to ease this year. This is also coupled with what we expect will be a change in consumer demand. We are likely to see people starting to spend less money on material consumables and more on lifestyle such as travel, dining out etc.” Travis Erridge says.

With a little smoothing out of demand, Darren Bretherton says now is a good time to look at the systems you have in place and see if they fit a postcovid environment.

“Business decisions were historically made with very steady demand curves, but can they manage a new environment where we’ve are seeing changes in how consumers buy a product and the way business operates as a whole?”

Where this will settle remains unknown, and TMX’s Travis Erridge says we might even see an oversupply of shipping availability.

“It’s a bit controversial and goes against what everyone has been saying so far, but we think we’ll start to see things normalise this year, which might mean we see a lower-than-normal demand coming into peak season this year. Similar to post GFC, we might see an oversupply and under demand which will present its own issues for the supply chain,” he says. ●

SUPPLY CHAIN INSIGHTS

22

Analysis

Key Supply Chain Challenges all Retailers Need to be Aware of Today WRITTEN BY RAGHAV SIBAL MANAGING DIRECTOR, ANZ, MANHATTAN ASSOCIATES

The retail landscape is significantly challenged today. With supply chain issues impacting stock levels, increasing volumes of returns and increased customer expectations in relation to online deliveries, local brands will have a hard time satisfying customers in 2022.

As a result, retailers will find that they quickly need to adopt new systems and approaches to enhance their supply chains and meet consumer demand for a seamless and more personalised shopping experience.

So, what supply chain challenges should retailers be aware of, and how can they overcome these?

Returns management will increasingly impact consumers’ perception of retail brands While eCommerce has served as a lifeline for retailers over the past year, the ever-increasing volume of returns poses significant challenges, including impacting consumer perceptions of a retail brand. The returns process can regularly make

SUPPLY CHAIN INSIGHTS

23

or break the overall brand experience, and savvy retailers are increasingly viewing the return process as an opportunity to further engage with customers, providing, as it does, an additional touchpoint to enhance the overall customer experience.

customers quicker whilst also providing a convenient collection point for consumers. With the adoption of this kind of smart fulfilment method, retailers can get their goods to consumers faster, cheaper and more efficiently.

Retailers today need to have greater visibility and more intelligence around their inventory, regardless of where it is currently residing in their network.

Manage stock visibility issues through advanced technology

Smarter front-end omnichannel systems capable of efficiently dealing with customer enquiries and greater insight into data around transportation processes will be the key areas for brands looking to solve the challenges presented by the growing returns trend.

The war for talent will put pressure on supply chain operations Given the extent to which a positive or negative customer service interaction can have on a shopper’s perception of a retail brand, the war for talent and the need to retain high performing staff will create additional business pressures. In such an environment, organisations need to focus on selling themselves as an employer of choice and create and promote initiatives that set their business apart in a competitive hiring field.

Given the need to retain IP in a challenging hiring market, more employers are focusing on career planning and succession internally to ensure adequate support and training for workers to move up the ladder. Many supply chain and retail organisations also offer financial support for further tertiary education studies or provide retention bonuses to ensure continuity.

With supply chain issues leading to stock level challenges for many retailers, the last thing any business wants is to run out of stock – or worse, to later find out that the stock they needed was in the warehouse the whole time.

To mitigate this, operational visibility and forward planning remain fundamental to retail and supply chain continuity and efficiency. To gain these insights, solutions like a Warehouse Management System (WMS), which integrate all sales and distribution channels into one place are required.

With innovations like a WMS, retailers have absolute transparency around their goods. They can review the rules of stock allocation, temporarily giving priority to in-store stock over warehouse stock, thus, freeing up any trapped inventory confined within closed stores. ● For more information on how your retail business can enhance the customer experience in 2022, please visit here.

New approaches can help solve fulfilment challenges As eCommerce and ‘store to door’ delivery continues to grow, many retailers are struggling to turn a profit from online sales. The challenges of the last two years didn’t just fast-track eCommerce uptake.

They also accelerated advances in technology, pushed businesses to revaluate traditional models, and forced many to rethink relationships between retailers, disruptive start-ups and automation, setting the scene for a radical shake-up of fulfilment strategies over the coming year.

One of these fulfilment strategies and one of the most cost-effective trends retailers and supply chains are adopting is micro-fulfilment. Microfulfilment involves moving out of large singular DCs to smaller and more local and convenient hubs. By expediting the fulfilment process, micro-fulfilment gives brands the opportunity to get goods to their

SUPPLY CHAIN INSIGHTS

24

Industry Updates

New Integrated Business Planning (IBP) Service to Deliver a Strategic Roadmap for Supply Chain Organisations WRITTEN BY LUKE ROCHESTER, ASSOCIATE DIRECTOR, INTEGRATED BUSINESS PLANNING (IBP), TMX

How can you better predict supply and demand to maximise profit, improve customer experience and increase cash flow?

Getting the balance between supply and demand has been one of the main goals of almost every business for decades. Whether you’re supplying essential medical goods, fast-moving consumer goods, fashion apparel, or professional services – the fundamentals of supply and demand apply.

Get it wrong, and you’re faced with the challenge of holding too much stock, tying up cash flow and limiting opportunities to invest in marketing or promotional activities to grow your business. Or even worse, you miss out on the sale, damage your reputation and lose a customer for life.

As COVID-19 has disrupted supply chains and businesses throughout the world, finding the equilibrium between supply and demand has never been more important. This continued disruption to global supply chains has resulted in CEOs and General Managers shifting their focus and attention to operations and supply

chain planning like never before.

All of this is happening at the same time as both the influence and capabilities of Machine Learning and Artificial Intelligence (AI) are growing. So, what if we could avoid supply and demand issues by using Machine Learning and AI?

What is IBP? IBP is not software or technology; it is a high-level process that, once complete, will enable a business to predict and maximise profitability, customer service levels and cash flow.

By following a five-step process, IBP provides a strategic roadmap that assesses people, processes and systems to identify gaps and challenges to overcome and ultimately results in redesigning the business for future success.

How does it work?

While the pursuit of accurate supply and demand forecasts is not new, until now, businesses have had to deal with competing

views of the forecast – departments would have their own view based on what was important or relevant to them.

With the advancement of Machine Learning, we can now revolutionise the way businesses generate forecasts and create one system to forecast everything.

This single source of truth is called a Digital Business Plan.

Now anyone in the business – sales and marketing or operations, executives in the boardroom or staff on the front-line – can access the Digital Business Plan to see the company’s forecast for tomorrow, next week or next year.

Is your business IBP ready?

Regardless of what processes or software a business currently utilises, any organisation can benefit from IBP. TMX can work with sophisticated ERP systems or manual invoicing data. We will go through the same five-step process to drive the same outcome for all businesses – utilising machine learning to maximise customer service, profitability and cash flow.

For any business looking to gain a better understanding of future risks and opportunities, IBP presents an opportunity to improve supply and demand visibility, customer service, profitability and cash flow. ● To find out about TMX’s services in this space, visit: Boost business recovery with Integrated Business Planning (tmx.global)

SUPPLY CHAIN INSIGHTS

25

More than More thanTMS WMS and It’s the entireand supply chain WMS T MS on one app It’s the entire supply chain Control distribution, labour, automation on one app on a single platform. and transportation Unify your supply chain and work in Control distribution, labour, automation ways you never haveonbefore. and transportation a single platform.

Unify your supply chain and work in ways you never have before.

To learn more, visit manh.com.au/active To learn more, visit manh.com.au/active

Analysis

How to Improve Your Supply Chain Resilience Through Automation Today WRITTEN BY LUKE THOMAS REGIONAL VICE PRESIDENT APAC AT APPIAN

Traditional supply chains are struggling to keep up with heightened customer expectations, increased regulations, and outside influences on the market — including how to pivot operations in response to global pandemics.

Today, Australian businesses must look at their work processes and how these can be streamlined, improved and made more resilient through digital transformation.

To improve supply chain operations, organisations must improve asset performance and reliability. Yet they often deal with manual processes, inflexible systems, and spreadsheet-tracking for asset management, creating silos and limiting visibility into the performance of key assets such as equipment, machinery, vehicles, factories, etc. This lack of control and visibility impacts performance, production, service delivery, and ultimately customer satisfaction.

For stronger business outcomes, organisations need better asset lifecycle management across the enterprise – Improving asset performance and reliability is critical to achieving operational excellence. Organisations often rely on manual processes and spreadsheet tracking, limiting enterprise-wide visibility across high priority assets,

SUPPLY CHAIN INSIGHTS

including equipment, machinery, vehicles, refineries, plants, and factories. Logistics teams often handle a wide range of complex but repeatable tasks that require large amounts of data. Automation can help transform key aspects of logistics management, including automating workflows, more effectively leveraging asset data, and improved visibility of operations such as:

27

• Fleet management: Automation capabilities give organisations the ability to track fleet utilisation and costs, trip and maintenance activity, and vehicle check-in/checkout processes – all from mobile devices. With an innovative solution, businesses can effectively collect and utilise data on invoices, available hours for drivers, load/ticket information, job run-sheets, per-delivery costs and more.

• Track and trace: A digital control tower allows users to track geographic location, control coldchain distribution, and ensure the accuracy, authenticity, and safety of products in transit.

This helps organisations protect against fraud and counterfeiting and ensure corporate responsibility.

There must be a heightened focus on communication and collaboration amongst supply chain partners moving forward to make the supply chain more agile and resilient. Amplified engagement will boost disruption response and ultimately customer satisfaction. Transformation opportunities include: • Vendor onboarding: Streamline the workflow for vendor qualification and performance measurements. Implement a solution that improves visibility throughout to ensure reduced onboarding cycle times.

• Inbound supply management: Leverage data and implement technology that ensures endto-end transparency across the supply chain.

Choosing a platform that can unify data and processes into a single interface, allows you to adapt to changing environments, and streamline workflow with automation capabilities.

• Supply chain planning: Streamline the sales and operations planning process, creating an integrated business management process that empowers stakeholders to focus on key supply chain drivers, including sales, marketing, demand management, production, inventory management, and new product introduction. Orchestrating the planning process ensures executives have the information needed to make key decisions that improve customer experience and drive positive financial impact.

The sourcing and procurement process is also growing more complex due to increased demand for accelerated timelines, heightened sustainability concerns, and the need to reduce risk with trusted suppliers. Looking forward, sourcing and procurement professionals will need to turn to automation capabilities to help them improve productivity and streamline critical processes.

Sourcing and procurement are well-suited to the addition of automation capabilities. Key aspects of the procurement process can benefit from automation in areas such as: • Procure-to-pay: Automation streamlines and accelerates the entire process, allowing organisations to increase productivity and efficiency while saving costs. Robotic process

SUPPLY CHAIN INSIGHTS

automation (RPA) removes redundant steps, while enhanced workflow leads to more accurate decisions and greater process transparency.

• Contract lifecycle management: Automation capabilities can help transform contract management by allowing for standardised processes, better visibility for negotiations, and improved contracting cycle times.

A lack of proper demand planning puts organisations at risk of inventory miscalculations and production delays.

With the addition of intelligent automation capabilities, managers can gain more control of key processes and areas of operation, including: • Inventory and materials management: Automation allows users to manage workflow at every stage: requests for materials, cataloguing and provisioning, the movement of materials, their use in production, and distribution to the end consumer.

• Warehouse management: By implementing automation capabilities, organisations can improve the transparency and productivity of warehouse operations. Leveraging RPA for manual tasks across order processing, inventory tracking, fulfilment, and shipping can increase efficiency and accuracy.

• Claims investigation and compliance: Organisations can use AI to identify potential fraud cases to investigate. Further integrate AI to validate claims, ensure quality control, and expedite claims processing.

• Maintenance and repair operations: With automation capabilities, companies are better able to adopt predictive maintenance programs and prevent costly machine repairs and replacements. Additionally, they can automate repair processes such as order entry, inspection, quotes, reviews and approvals, part shipment and invoice of repairs.

With the ongoing disruption caused by the pandemic, changing customer expectations, an evolving technology landscape, and the demand for more sustainable practices, supply chain managers need efficient and transparent processes more than ever before. One of the most powerful tools in digital transformation today is low-code; by connecting process mining, to workflow, to automation, low-code becomes central to an organisation’s improvement. ● For more information on how automated processes can help improve your supply chain operations, please click here.

28

Analysis

Reimagining Customer Experience for a New Breed of Shopper WRITTEN BY SUPPLY CHAIN INSIGHTS

Many retailers have quickly and successfully navigated the challenges of the last two years and are now equipped with many of the right tools required to seamlessly serve their customers across whichever touchpoints or platforms they prefer.

As learned pandemic behaviours become the default setting for millions of consumers around the globe, brands have continued serving customers via click & collect and curbside pickup, simultaneously processing online returns in-store.

For many retailers, this agile, innovation-heavy fusion of online and physical demand is becoming more commonplace, placing the role of modern, dynamic Point of Sale (POS) technology squarely at the centre of a redefined connected commerce era.

For brands today, a reimagined customer experience can be broken down into three key stages, with modern POS playing an important linchpin function at each of the three phases: • Pre-purchase: retailers need to have full visibility of not just customer data such as purchase history, but also their own inventory too • Purchase: out-of-stock is no longer an option for retailers today. With modern POS, endless aisle

SUPPLY CHAIN INSIGHTS

capabilities, mean shoppers can purchase goods from across an entire network, rather than being restricted by the availability of inventory at a single location • Post-purchase: stores have a critical role to play in the returns process, but without smart, joinedup store systems, returned goods can often fall into an inventory ‘black hole’ • The industry has come a long way from the very first point of sale system invented by American shopkeeper James Ritty in 1879 to those that can

29

capable of offering in-store purchasing from another store’s inventory or the warehouse. From a customer experience perspective, this feels dated, not only risking the sale but also brand loyalty too.

To truly reimagine the customer experience journey at a deeper level in 2022, we have to recognise that the role of the store is no longer limited to selling; rather, bricks and mortar retail must be repositioned as a hub for fulfilment too.

The benefits of this approach have been played out over the last two years and continue to do so today: retailers with store fulfilment options see higher revenue growth – a 114% increase when click and collect is implemented and a 60% increase when ship from store is implemented.

The future of the customer experience journey is closely linked to eCommerce, and the future of eCommerce is intrinsically linked to the evolving capabilities offered by stores.

In order to meet supercharged customer expectations, retailers need to adopt a sell/fulfil/ engage anywhere mentality. However, when it comes to future-ready POS implementation, brands often make three common mistakes, • Adopting a store-only plan which could limit future agility • Minimal investment in change management leading to uncertainty or failure to thrive

now meet the needs of the 21st-century shopper, irrespective of device or channel used.

But, as we observe an acceleration towards a true convergence point between physical and digital retail (fuelled by the effects of the pandemic), it’s important for retailers to continue to innovate and remove any remaining points of friction from this reimagined shopping experience.

For example, let’s go back to the perennial problem of out-of-stocks. It’s hard to believe that even in this day and age, only a small minority of retailers are

SUPPLY CHAIN INSIGHTS

• Selecting a “proven” vendor with old technology without consideration for new innovations All too often, brands are still thinking in silos.

Instead, they need to develop a unified commerce roadmap (POS + clienteling + store fulfilment + customer engagement), make a clear plan for organisational change and select the right vendor capable of delivering against long-term, aspirational and often moving targets.

As the evolution of POS continues amidst the backdrop of a pandemic-effected economy, one thing has become clear: customers are in the driving seat when it comes to how, when and where they want to shop.

It’s up to retailers to take the reins of this new customer experience journey and drive the narrative forward, but they can only do this by having sophisticated, modern POS and order management systems in place that support their customers varied shopping journeys.

Whether in-store, online, curbside, via mobile, or even shopping via social media, ask yourself: are you capable of delivering a seamless customer experience journey across all the places your brand is represented, both online and physically?

If the answer is ‘no’, maybe it’s the right time to talk about the evolution of your store systems and broader supply chain. ●

30

Industry Updates

Australia Post Delivers Solid Revenue Growth, with eCommerce Expected to Moderate Australia Post has announced group revenue for the first half of $4.80 billion, up 10.4 per cent year-on-year, driven by the strongest parcel volumes in Australia Post’s history.

The improved Group profit before tax of $199.8 million was underlined by asset sales and revaluations, as well as favourable bond rate movements.

Operational costs, which increased by 13.2 per cent on last year, reflect volume increases

and COVID-19 related network constraints, which are likely to continue in FY23.

Capital investment during the period increased to $217.8 million, up $28.4 million on last year. This forms part of the $400 million committed to new parcels facilities, fleet and technology by mid-2022 to help service the growing demand for services, bringing the total committed investment to more than $1 billion over three years.

The business also committed an additional $20 million in upgrading systems to cloud based solutions over the next year to improve parcel scanning and tracking in the network.

Group Chief Executive Officer and Managing Director, Paul Graham, said the result was a significant achievement given the ongoing disruptions to the business during the COVID-19 pandemic and the necessary network changes required to continue to provide essential goods and services to customers.

“Just like many businesses around the country, we have dealt with unprecedented challenges over the past year, but the ability of our people to adapt during ongoing challenges presented by the COVID-19 pandemic has been nothing short of remarkable,” Mr Graham said.

“Together, we worked tirelessly to manage the health and wellbeing of our people, with isolation rules and travel restrictions across different states and territories all carrying different challenges – while our people remained resilient and delivered for our communities.”

While Australia Post experienced the strongest parcel volumes in the organisation's history, eCommerce growth is expected to moderate in the second half of the 2021-2022 Financial Year, while letter revenue will continue to decline over the next six months. ●

SUPPLY CHAIN INSIGHTS

31

Industry Updates

Reid Fruits Experiences a Dramatic Decline in Product Counterfeiting Due to Digital Fingerprint Solution Tasmanian cherry grower Reid Fruits has announced a dramatic decline in product counterfeiting, over the past three export seasons to Asia. This is a result of a Smart Fingerprint® solution developed by brand authentication technologists Laava collaborating with digital printing specialist Peacock Bros. The Laava Smart Fingerprint is the secure on-product gateway - for brand protection and consumer engagement.

“Counterfeiting is a massive issue for us, as well as for countless other Australian fresh fruit producers,” said Tim Reid, Managing Director, Reid Fruits. “The Smart Fingerprint technology offers a level of secure authentication that will make it extremely difficult for counterfeiters to replicate.”

Reid Fruits has been applying Laava’s patented Smart Fingerprint technology on its cherry boxes for 20 export markets from the 2019-20 picking season.

Reid Fruits went from experiencing potentially thousands of counterfeits per season to having 10 cases automatically stopped by the Laava platform in 2019-20, and only three in 2020-21 – a 60% reduction over the previous year.

"The fact that Reid Fruits has experienced such a dramatic decline in product counterfeiting activity demonstrates the direct benefit of the Smart Fingerprint technology. Not only does this identify instances of fraudulent activity, but counterfeiters soon realise that their actions will be noticed if they try to copy Reid Fruits packaging to leverage their strong market

SUPPLY CHAIN INSIGHTS

reputation with a substituted and inferior product," said Gavin Ger, Laava’s CEO. Laava Smart Fingerprints are digitally printed by Peacock Bros, utilising state-ofthe-art digital label printing and finishing technologies. The Smart Fingerprints use images uniquely generated for each individual product, and use proprietary optical scanning technology, making them much more secure than a QR code. When a counterfeit Reid Fruits cherry box featuring a counterfeited Laava Smart Fingerprint is scanned by the consumer, a ‘Suspected Counterfeit’ message will be displayed on the consumer’s Smartphone screen, alerting them to the product not being authentic, along with support information from Reid Fruits.

"Peacock Bros. is excited to be supporting Laava in disrupting the business model of counterfeiters with an innovative solution that combines advanced digital printing technologies. With consumers and brand owners across the Asia-Pacific region becoming increasingly concerned about authenticity, solutions that validate products and limit counterfeit goods in the supply chain will enhance buyer confidence and help protect brand reputation and

integrity,” said Ryan McGrath, Managing Director at Peacock Bros. “Securing products at item level provides us with the framework for implementing emerging technologies such as connected packaging solutions. These provide advancements in consumer engagement (through augmented reality), product track and trace capabilities, and sustainability improvements within the supply chain.”

In the 2021-22 season, Smart Fingerprints were incorporated onto over 400,000 Reid Fruits cherry boxes, bound for 20 global markets. A significant number of those boxes were sent to China, one of the company’s largest export markets and also the destination where the Australian business has historically encountered significant counterfeit challenges.

“Chinese consumers, in particular, are aware of issues associated with product counterfeiting and have a very strong appetite for product information and brand narratives that allow them to connect directly with Australian producers,” Mr Reid said.

When consumers scan a Smart Fingerprint, they not only get a guarantee of the product’s authenticity, but the digital platform also provides engaging content.

Reid Fruits can educate buyers on the product they have purchased, as well as provide the ability to serve up special offers and social media integration.

“Reid Fruits brand is a leader in the premium cherry market in Asia and is now leveraging Laava’s unique combination of brand trust, product traceability and digital storytelling capabilities,” said Mr Ger. “All of this was enabled cost-effectively and with incredibly high quality by Peacock Brothers digital label printing capabilities.

And critically, it was easy for Reid Fruits seasonal staff to apply to their existing cartons, with no changes to operational processes, and no new technology.” ● To learn more, please click here.

32

Analysis

The War for Supply Chain Talent: The Bastian Consulting Perspective WRITTEN BY TONY RICHTER PARTNER AT BASTIAN CONSULTING

Global supply chains are under greater pressure than ever before due to ongoing disruption caused by the pandemic. Increased unavailability of everyday goods and supermarket shortages have both raised the profile of the supply chain sector and highlighted how fragile interconnected logistics systems can be and how easily supply lines can be broken.

Compounding supply chain issues in recent times has been a lack of specialist talent. Just as supply chains were challenged by increased online orders and a scarcity of goods, the worker pool in Australia with specialist relevant skills and experience was also impacted and diluted through international border restrictions.

Simply put, companies are struggling to find the right supply chain talent for their business today.

There's a huge need for talent that can fix supply chains or talent that can scale supply chains, but not enough workers. Most companies need workers either because they weren't prepared for the current

SUPPLY CHAIN INSIGHTS

talent crunch and have now realised they need to address their worker shortage, or they actually were prepared and properly skilled, which led to their business gaining market share, which as a result means that they need more headcount to service their own rapid growth.

In Australia, there is an acute shortage of experienced workers in roles like WMS implementation or configuration and those with digital skills in automation. These types of workers are central to businesses attempting to digitally transform their own supply chains to automate processes and meet demand in an eCommerce environment, so it is of little surprise that they are so valued right now.

An additional challenge faced by companies looking to bring in new talent is that fewer and fewer people have a comprehensive knowledge of the entirety of supply chains and how each part works and depends on the other. The trend in the last ten years has been to find supply chain professionals that were specialists in one specific area, and while that might meet a company's short-term needs, it also makes it harder for these specialists to have a macro understanding of the bigger picture. New entrants into the supply chain sector also appear keener on office roles – such as working in analytics or technology. However, without experience on the warehouse floor, they’re never going to know how the decisions they might make will actually impact other areas of the business, which can lead to operational and personnel tensions.

33

Australia and New Zealand, increasing the available worker pool and easing the local talent crunch, the opposite may actually be the case. As Australia has some highly sophisticated supply chains and a strong reputation for investing in training workers, professionals in this country are prime candidates for international companies. So, we could actually see a brain drain of highly skilled workers to overseas markets that also need for experienced supply chain professionals. For instance, Asia is experiencing growth in cold-chain facilities and networks right now, and the amount of talent required to design and automate these new sites is significant – leading many organisations to consider highly regarded Australian workers.

Given the increased competition for workers today, companies have to think outside the box to attract and retain talent.

There is a growing need for generalist supply chain professionals. Someone who has supply chain and procurement experience along with technology and e-digital skillsets to meet the needs of companies looking to scale or troubleshoot supply chain issues.

Companies need staff with operational know-how, the ability to take data and model scenarios, make smart decisions and execute digitally.

Given the lack of experienced workers, companies need to be wary about trying to do too much with too little.

If a business is trying to meet increased supply chain demands without any extra workers (because they cannot find or afford new talent) and they are forced to ask their existing team to take on more work for longer and more frequently - this situation is not viable in the long-term. If existing team members do not feel like they are properly supported or valued, it can cause worker burnout or distress, leading to staff discontent eroding workplace culture and increasing turnover at a time when finding replacement workers has never been harder.

Although many businesses might be hoping that the reopening of international borders will present opportunities to attract workers from outside of

SUPPLY CHAIN INSIGHTS

This includes offering signon bonuses and retention bonuses to mid-level workers to attract their interest - a move that previously was reserved for senior workers.

It also means taking a different approach to finding the next generation of supply chain leaders.

Bastian Consulting was recently engaged by a large beverage manufacturer to help it scale its team.

This meant analysing its wider workforce to uncover individuals outside of the supply chain team with appropriate and transferable skills and knowledge base, as these workers could be onboarded faster and were more likely to feel comfortable in a new role.Companies that undertake this process to introduce future supply chain professionals into their wider organisation and provide training and hands-on experience to accelerate their learnings will be better positioned in 2-3 years’ time.

Unfortunately for many companies, the war for talent in the supply chain sector is not going away in the short-term. As companies recognise that their supply chain is central to their business operations, the need for experienced workers will only grow. It is those companies that recognise the challenge, manage their existing teams and upskill workers to bring through new professionals that will be successful in the long run. ● For more information around how your business can attract workers in a talent crunch, please click here.

34

Analysis

4 Essential Steps to Optimise eCommerce Fulfilment for Workflow Efficiency WRITTEN BY TOM CHRISTODOULOU, REGIONAL DIRECTOR OF AUSTRALIA AND NEW ZEALAND, ZEBRA TECHNOLOGIES

The rapid rise of the global eCommerce market reflects a shift in consumer attitudes that has made shopping convenience paramount.

New consumer expectations of speed and convenience are impacting supply chains in ways never seen before. In this environment, downtime and inaccurate inventory can cause delays that result in millions of dollars in lost transactions and poor customer experiences.

On the other hand, small increases in productivity can make a big impact on customer satisfaction and the bottom line.

So, how do supply chain and logistics professionals access these benefits?

The answer is by optimising operational efficiency in product handling, workflows and use of staff, assets and equipment throughout the fulfilment centre. Superior visibility across your fulfilment centre and partner networks makes greater efficiency possible. With better visibility, you can achieve greater workflow efficiency and collaborate with more partners to get goods delivered to customers faster using flexible omni-channel strategies as you grow.

SUPPLY CHAIN INSIGHTS

Step 1 Understand supply chain visibility and efficiency improvement microservices strategies With the increased dependencies on omni-channel logistics, industry partners are working under collaborative service-level agreements to get goods to the end customer in a promised timeframe. Understanding and implementing these three operational improvement strategies throughout your fulfilment operations can facilitate successful partner collaboration across the supply chain.

The three strategies: 1. Equipping workers with modern mobile technology 2. Automating workflows and managing inventory on the front line 3. Adhering to global data capture standards

Step 2 Equip workers with modern mobile technology Giving your workers modern mobile technology to easily and intuitively capture and utilise data at each touch point throughout the fulfilment process, gives you reliable inventory visibility at any given moment—providing you with better forecasting and communication with your vendors, suppliers, 3PLs and selling channels.

The key to success is choosing and implementing the right devices for the job - that way you can ensure compliance for data capture and use.

What is the right technology for you?

If your front-line workers are always on the move, equip them with a handheld mobile device, which is basically a computer in your pocket (touch screen, camera, enterprise-grade processing power, extended battery life and durable) including a built-in barcode scanner or RFID reader.

If printing high-quality barcode labels or RFID tags from multiple locations is part of your everyday, equip workers with a mobile printer which will allow for digital inventory and asset tracking. By giving your physical goods a digital presence, you’ll maintain essential realtime visibility of your entire supply chain.

35

Step 3 Automate and manage inventory on the front-line Empowering your front-line workers to view and manage inventory is paramount to a successful, optimised eCommerce fulfilment operation. Supply chain operators have much room to improve their inventory accuracy, with participants in a 2018 APAC Zebra survey reporting an average inventory accuracy of only 61 percent.

Using captured data to track and analyse inventory movement and utilisation enables real-time decision making throughout multiple operational areas of your fulfilment centre, warehouse or plant so you can optimise interactions with your vendors, suppliers, 3PLs and physical and online selling channels.

So how do you achieve this?

Enabling automation can be as simple as introducing new productivity applications to your devices as well as Radio Frequency Identification (RFID). Productivity applications can save valuable seconds in repetitive tasks - for example, you can capture multiple barcodes in one scan or trigger pull. Meanwhile, RFID can reduce the amount of manual scanning or counting through active or passive signals, resulting in far greater inventory visibility and accuracy levels of 99 percent (a 38 percent increase from the average inventory accuracy).

Step 4 Adhere to global data standards to support effective collaboration In the age of eCommerce, fulfilment and delivery optimisation often means getting an item into a customer’s hands the same day they order it.

Collaborating more effectively with your industry partners and achieving real-time supply chain visibility throughout your fulfilment process can be the difference between capitalising on and missing opportunities to meet heightened customer demands. Capturing and sharing data using global data standards is a powerful collaboration practice that helps industry partners use a common language when managing goods and assets across the supply chain. Using the standards allows for fast, accurate and frictionless transactions and analysis that reduce missed opportunities and cultivate greater customer satisfaction.

How will you benefit?

Benefits to using global data capture standards include easy identification of goods amid changes in the chain of custody, item-level data capture across your partner supply chain for further data analysis, and easy to understand data and information sharing without complicated conversion exercises.

SUPPLY CHAIN INSIGHTS

Step into the future 99 percent of businesses either have a mature omni-channel strategy in place, have recently implemented one, or are planning to implement one soon. But what separates businesses, is their choice in technology to bring their strategy to life.

By incorporating innovative frontline inventory management and orderfulfilment technology solutions into your daily fulfilment operations, you can provide advanced visibility of supply chain activities.

This visibility enables you to collaborate seamlessly with selling channels, manufacturers, wholesalers, suppliers, third party logistics providers and buyers.

Combined with the use of global data capture standards, technology modernisation is a critical step in achieving a higher level of collaboration that meets today’s omnichannel, order-fulfilment requirements. ● To find out more about how you can give your front-line workers better visibility of goods, assets, processes and people download Zebra’s new report here.

36

Industry Updates

De-risk your Operations and Reduce Shipping Delays this Peak Season WRITTEN BY ROB HANGO-ZADA CO-FOUNDER AND JOINT CEO, SHIPPIT

The eCommerce landscape is changing.

Business leaders must de-risk their operations, prepare for large scale disruption and surges in consumer demand to protect the customer experience. Shippit’s own data shows that since September, retailers were already dealing with Christmas 2020 volumes every single day. And today, off the back of a 25% increase in online retail demand, Australia's parcel-handling system continues to experience delays and courier disruptions.

Choosing the right carrier can help reduce shipping delays and has never been more important. With a record-breaking peak season ahead, staying on top of your fulfilment and logistics operations will be key to meeting customer demand.

We can’t predict how this will impact networks and supply chains, but we don’t see the trend of online shopping going away.

So, here are 4 ways to de-risk your operations and reduce shipping delays this peak season: 1. Warehouse Management Strategically plan out your warehouse operating hours to reduce fulfilment backlogs and speed up delivery times to customers.

Tip: Create a calendar for workers of when extra hours are needed to meet surges in customer orders around the holiday season. For instance, a Saturday shift (after Black Friday sales) will help reduce the number of orders needed to be fulfilled on the following Monday.

SUPPLY CHAIN INSIGHTS

2. Multi-carrier shipping strategy A multi-carrier strategy helps to spread freight across the right mix of carriers, especially when depots are at capacity through peak and parcels can take longer to be processed.

Tip: This will help de-risk deliveries from delays.

3. Multiple delivery options/ on-demand delivery Offer multiple delivery options at checkout to give your customers the convenience of online shopping and peace of mind that their orders will be delivered on time.

Tip: Provide access to a range of delivery options to get ahead of cut-off times - from standard to express, next day, same day and on-demand - at discounted rates.

4. Define your returns strategy to improve customer satisfaction While a large influx of holiday gift returns might not start coming in until the end of December or early January, it’s important to make sure you have a thorough returns management process in place.

Tip: Revisit your returns policy and review which products have historically been returned the most. Based on qualitative data, determine why and consider making changes to the product descriptions to set better expectations.

Ready to get ahead of peak season demand and avoid supply chain delays? Set your business up for success by adopting a multi-carrier strategy. ● To learn more, please click here.

37

Industry Updates

Australian Consumers Push for Contactless Shopping Following COVID-19 New research has revealed that Australians desire contactless shopping, delivery and collection options following COVID-19. The research shows that nearly 60 percent of Australian shoppers are more likely to purchase and collect retail goods without human interaction such as online ordering for contactless click and collect, compared with before COVID-19.

The research project undertaken by Manhattan Associates, found that only 28 percent of shoppers desired the same level of direct human interaction when shopping as they did prior to COVID-19. Of those respondents who desired contactless shopping, 57% percent of people were likely to buy online for home delivery, 18 percent would buy online and collect from a contactless parcel collection point, while 7 percent of people would buy online for contactless curb-side pick-up.

“Australian consumers’ shopping habits have fundamentally changed following the arrival of COVID-19.”

They want less direct human interaction and more flexibility in the way that they shop, collect or receive their goods, that is much more varied than traditional models of instore purchasing,” explained Raghav Sibal, Managing Director, Manhattan Associates.

“This shift in buyer behaviour can be attributed to not only perceived health concerns following the impact of COVID-19, but also a positive customer experience of the increased flexibility that retailers have offered shoppers in 2020. The findings have significant implications for local retailers who must offer greater flexibility to meet varied consumer preferences.”

In addition to desiring less human contact, shoppers also indicated that they were more likely to participate in sales

SUPPLY CHAIN INSIGHTS

campaigns than before COVID-19, with 71 percent of people saying that they are now more likely to purchase goods from events like Boxing Day sales and click-frenzy.

People that are looking to purchase from a sales event in the future are mainly likely to do so because they have less money to spend on essential goods (32 percent), or are looking for a bargain (38 percent), while only 11 percent of people will be participating in a sales event to make an indulgent or luxury purchase. In any sales, shoppers indicated that they were most likely to purchase clothing (70 percent), followed by electronic equipment and household goods (44 percent), such as refrigerators.

“Given the financial impact that COVID-19 has had on many Australians, it is not unexpected that they would turn to sales events to make their finances stretch further.

“Retailers need to be prepared for spikes in sales activity around these events and take control of their inventory with real-time visibility of stock, whether it is in the warehouse, in-store or being transported.”

By knowing what goods they have, and what they may need to build stock up on for future sales events, retailers can position themselves to take advantage of sales and offer the best possible customer experience.” ●

38

Analysis

How MicroFulfilment is Re-shaping the Australian Supply Chain in 2022 WRITTEN BY SUPPLY CHAIN INSIGHTS

The COVID-19 pandemic has accelerated the proliferation of eCommerce by up to six years according to industry experts, with social distancing and lockdown measures leading to unprecedented growth in online shopping.

However, there are associated challenges when it comes to eCommerce fulfilment and delivery, particularly in metropolitan city centres where there is a high reliance on imports, but land availability and limitations on international travel are disconnecting the flow of the eCommerce supply chain.

Online delivery exploded in Australia during the pandemic, yet there appears to be a strong disconnect between what consumers say that they want in relation to retail delivery or collection, and what retailers are offering or understand that their customers want. A recent Manhattan Associates survey of 2,000 Australian consumers and 100 large-end retailers found that the largest group of consumers – 34 percent - said they consider home delivery in two-plus working days to be the most useful option when online shopping, whereas only 6 percent of retailers said that this was the most popular delivery option with their customers.

Almost 50 percent of retailers said that Click

SUPPLY CHAIN INSIGHTS

and Collect in two-plus working days was the most popular delivery option amongst customers, which contrasted with only 6 percent of consumers agreeing that this was the most useful delivery option. A further 31 percent of retailers stated that same day home delivery was the most common delivery choice with customers, however only 8 percent of consumers consider this to be the most useful choice.

Alarmingly, these research findings indicate a major divide between what retailers believe is the desired delivery option, compared with what consumers really want or find most effective.

To combat the very real challenges around meeting customer expectations for online delivery today, one innovation gaining pace for a proactive and resilient supply chain is micro-fulfilment centres.

Micro-fulfilment is the new 2021 supply chain COVID-19 did not just fast-track eCommerce uptake, it also accelerated advances in technology, pushed corporate boards to revaluate their traditional business models, and forced them to rethink relationships between retailers, disruptive start-ups, and automation innovations. This set the scene for a potentially radical shake up of fulfilment strategies across Australia now and into the future.

39

making micro-fulfilment centres work efficiently rests on three core pillars. Firstly, making sure that you have an effective omni-channel offering that connects eCommerce orders to the appropriate micro-fulfilment centres is essential. Secondly, ensuring you have complete visibility of inventory is an equally important factor for maintaining accurate insights into stock availability, so you will never end up out of pocket. Finally, making sure you have an in-warehouse system in place to meet the exact delivery demands of the end customer that will see you through to a well-managed and proactive microfulfilment strategy.

Other beneficial aspects of micro-fulfilment centres for retailers across Australia are the options available when it comes to setting them up. You can set up micro-fulfilment centres to primarily service customers in the local area of one store, or you can also set up a ‘spoke-hub’ distribution model where one centre is able to serve many different stores.

Another approach could even be to set up a ‘dark store’ (a retail DC or outlet that caters exclusively to online shopping) as a micro-fulfilment centre.

Streamlining returns to gain efficiencies

At its core, micro-fulfilment aims to speed up the delivery of goods to consumers by bringing the product closer to the consumer.

As the name suggests, micro-fulfilment sites are far smaller than the traditional retail model of sprawling, labour-intensive distribution centres located in just a few remote locations. By adding more automated operations to smaller urban sites and even the backs of physical stores, retailers have the goal of slashing delivery times for online orders, allowing products to reach customers in a matter of hours, rather than days.

Micro-fulfilment also comes with a number of additional benefits. Cheaper than larger, fully robotics-equipped warehouses, the approach of a fully automated micro-fulfilment improves COVID-19 safety, reducing the costs of floorspace and expediting the picking process. It also enables late ordering cut-offs, which reduces the carbon footprint of delivery networks by being closer to the consumer and providing additional collection points away from busy store locations, which in a country like Australia can become incredibly advantageous.

The fundamentals of micro-fulfilment Beyond the challenges of adapting to a more entrepreneurial mindset, the practical aspects of

SUPPLY CHAIN INSIGHTS

The rise in eCommerce orders has also resulted in an increase in returns. Traditionally reserved for the start of the year when retailers would prepare themselves for an onslaught of Christmas returns, retailers must now prepare for higher volumes of returns throughout the year. Streamlining the returns process is key to ensuring bottom-line profits are not eroded too much. An effective Warehouse Management System (WMS) linked to micro fulfilment centres can help to streamline the returns process and also means that returned inventory can be made available for shops or online channels quicker.

Smart fulfilment to streamline 2021 supply chain operations While there is no doubt that the pandemic accelerated a more flexible and innovative approach to supply chain operations for many businesses, going forward there will be more pressure for retailers to redefine their fulfilment strategy to future-proof operations. As many grocers and retailers remain reluctant to use their current store base for eCommerce fulfilment - because it can interrupt customers and cause issues around social distancing - concepts such as automation and micro-fulfilment will likely be the winners this year and beyond.

While there are still many challenges ahead, we should have a positive outlook.

2020 showed the willingness of retailers and senior leadership decision makers in Australia to go above and beyond normal conventions.

With an open mindset and a willingness to adapt based on market conditions or opportunity, retail businesses are maximising their chance of future success. ●

40

Analysis

Transforming Supply Chains is Not Just About the Physical, it’s About the Digital Too WRITTEN BY TOM FITZ-WALTER, EXECUTIVE DIRECTOR SUPPLY CHAIN TMX

Over the last year there has been an onslaught of disruptions to supply chains across the globe. When COVID-19 first hit, supply chains around the world halted and organisations had no idea where their inventory was.

Today, with global freight issues and massively blown out lead times, visibility and flexibility in supply chains remains a significant challenge. These disruptions have seen the “just in time” supply chain philosophy thrown out the window for “just in case”.

Safety stock metrics for many companies have shifted and they are holding more inventory, which supply chain management would have penalised in the past. Having inventory and knowing where it is located is becoming more important than leaning out operations, which is bringing about a shift in focus from the physical to the digital supply chain.

Traditionally supply chains have been viewed to follow a linear path from designing a product, sourcing the materials, producing the product to fulfilling it and so on. Now with a digital supply chain, all these stages are integrated through internal and external systems to provide visibility in the whole value chain. The result is real-time analytics for smarter decision-making, data-backed predictions and more dynamic processes.

SUPPLY CHAIN INSIGHTS

While some supply chains are only just starting their physical transformation, ongoing disruptions are now also pushing supply chains to digitalise quickly, while those that haven’t started either journey are about to be left behind.

Old legacy systems not keeping up While systems such as Warehouse Management Systems, Transport Management Systems and Enterprise Resource Planning models are all wellestablished, they are all separate components that do different tasks.

Most organisations can relate to all these systems, therefore are already engaged in digitalising elements of their supply chain. However, companies can no longer only have visibility in parts of their supply chains. Organisations need to be able to track in real time the entire process from the point of origin, transit on shipping, to the distribution centre and in the case of online all the way to the consumer’s door.

Integrating the physical and digital supply chain The advancement of an organisation’s physical supply chain needs to synchronise with their digital supply chain. Supply chains now require interconnected systems that all interact with one another to provide full end to end operational visibility.

This will enable real time analytics for rapid databacked decision-making enabling organisations to be flexible and responsive, especially in the midst of ongoing disruption in global supply chains.

41

Design

Produce

When data is shared between the production and operations team, it enhances the research and development of a product. By integrating these functions through shared live data, a product’s design can be refined to create more efficient and seamless production processes.

The manufacturing process can be improved beyond just physical advancements through smarter decision making.

Visibility in a company’s supply chain through technologies such as asset tracking and data on external factors such as the environment or consumer behaviours can enable quick decision-making on fast moving or lagging stock and whether to ramp up or stop production.

Plan While advancements in materials handling equipment have automated tasks, digital supply chains enable the automation of complex decision making.

The centralisation of a company’s data onto one platform that is backed by cloud-based planning systems, big data and artificial intelligence can significantly improve a company’s planning capabilities.

An interconnected digital supply chain can enable real time analytics for rapid, more granular and informed decisions.

Source The sourcing and procurement stages can become automated and predictive through digitalisation.

Greater visibility in a company’s supply and costs and external data on prices can make sourcing more predictive, which could enable automatic replenishment orders, payments and exchange of goods.

With transactions becoming more automated, they can also be easier to track through technologies such as blockchain.

Fulfil Digitalised systems synced with warehouse and fulfilment operations create the continuous realtime insights and data needed to enable dynamic fulfilment.

Visibility of inventory and how it’s being impacted by seasons, weather or buying trends would inform fulfilment strategies and enable companies to pivot quickly on where inventory should be stored on any given day.

For an omnichannel company, this would inform whether inventory is stored in the distribution centre, dark store, micro fulfilment centre or stores to be picked up or delivered directly to the customer.

Service In the age of immediacy consumers expect fast and reliable deliveries, with digitalisation key to achieving this in an efficient manner.

This starts from having control towers tracking assets from the ship to the last mile delivery van.

Information throughout this journey needs to be digitised, with processes triggering automatic information sharing ensuring the product is always visible and accessible to the company but also the end customers.

Digitalisation harnesses the ability for an organisation to have data at their fingertips. This visibility in operations enables real-time analytics for smarter decision-making, predictive analytics and more dynamic processes, ultimately driving a more competitive supply chain critical to a company’s profitability and success. The key is to start by reviewing the holistic supply chain and performing a digital diagnostic. This identifies where the opportunities are for an organisation and supports the roadmap to implementation. An organisation’s digital strategy may take years to implement, therefore it’s important to initially focus on change that will provide the biggest wins. ●

To learn more about transforming your digital supply chain, please click here.

SUPPLY CHAIN INSIGHTS

42

Analysis

5 T&L Technology Tips to Drive Business Performance Today WRITTEN BY MICHAEL DYSON, VP OF SALES, APAC, SOTI

Recent supply chain disruptions have taught us that innovation is critical for business survival and, for the most part, the use of integrated technology has been the differentiating factor between a company succeeding or failing during the pandemic.

So, as we look forward, what lessons can be learnt and what technology trends will emerge that will help meet customer needs and drive business performance in the T&L sector?

1. Visibility across the supply chain is key With only 1 in 5 companies having total visibility into their mobile and IoT deployments, businesses that don’t employ analytics to enable this visibility will struggle to achieve their full potential. Insights from apps and user analytics can improve performance and serve customers better, delivering unprecedented levels of visibility and helping to forecast when to scale capacity up or down and adjust operations.

When transport and logistics (T&L) companies adopt a mobile-first strategy supported by powerful analytics, they can obtain end-to-end visibility across the supply chain. This delivers critical insights such as real-time decision-making, which can improve workforce productivity and create better and more responsive experiences.

With the T&L sector being so fast-paced, companies must adapt to be successful.

Visibility is the key to simplifying workflows and driving greater efficiencies across the operation.

Without visibility, businesses could see a devastating impact on their operations, especially now that consumers expect quick and trackable deliveries.

SUPPLY CHAIN INSIGHTS

43

business elsewhere. It’s also the most expensive part of the supply chain process; accounting for 53% of the total cost of shipping and up to 41% of the total supply chain cost.

The continued rise of eCommerce has aggravated the cost and inefficiencies of lastmile delivery. This has led to customers expecting fast and often free delivery regardless of location.

This places businesses under pressure to optimise delivery routes and processes. If they don’t, they risk disappointing their customers and losing out to competitors. Through all of this, technology has been the key tool for businesses to adapt to the rise in online shopping and the demand from consumers by working to streamline business processes and provide real-time visibility.

4. Integrate a mobile approach for business continuity

2. The in-store experience must be seamless Shopper loyalty is harder to secure than ever before.

One poor in-store shopping experience can lead to a shopper abandoning a sale and taking their business to a competitor.

In the future, retailers need to deliver frictionless in-store experiences and avoid stock issues at all costs. Retailers will struggle to sell what they don’t have, or can’t see, and any lack of stock visibility risks lost sales opportunities.

The coming year will demonstrate the importance for retailers to have real-time insights into their product inventory and logistics operations, so they can rapidly adapt to changes in consumer shopping patterns and meet customer needs.

3. The eCommerce boom Throughout the pandemic, there has been an accelerated move to online shopping. As people have been unable to visit physical stores, many have turned to online shopping, which has meant that fast shipping is no longer a luxury, but an expectation.

Last-mile delivery has also been a global, industrywide challenge faced by T&L companies during this time as it is traditionally the slowest part of the delivery process, yet the element that has the biggest impact on consumer satisfaction. When deliveries do not show up on time customers complain, and with multiple options, they won’t hesitate to take their

SUPPLY CHAIN INSIGHTS

Keeping up with the kind of accelerated consumer demand that has been experienced throughout the pandemic doesn’t have to be a strenuous task, as long as a business has an integrated mobile approach. By implementing a robust mobile-first strategy, companies can provide better customer experiences and ensure they increase speed, minimise costs and increase transparency in the delivery channel.

When T&L companies invest in up to date technology and ensure their staff are using an integrated mobility and IoT management platform, the T&L industry will not only see powerful customer retention, but will also be able to form an effective operations strategy.

5. Technology is key to successful growth Overall, technology adoption will be a critical factor for business success in the next 12 months and beyond. From research undertaken by SOTI, 76% of all T&L businesses agree that their organisation would benefit or has already benefited from having an effective mobile-first strategy for last-mile delivery, while 58% agree that it is an effective strategy that has reduced operational costs. Our research also showed that 29% of all senior executives said that introducing or growing a mobile-first strategy is their current priority to drive their business forward.

Updating technology processes will ensure that T&L operators are positioned to succeed in a postpandemic world. It is also the best way to ensure customers are satisfied with the experience they receive and evolve from first-time shoppers into long-term customers ● To learn how technology can drive T&L business performance, please click here.

44

Analysis

The Road Towards a Greener Retail Supply Chain WRITTEN BY SUPPLY CHAIN INSIGHTS

The importance of sustainability in the retail industry is now more prevalent than ever, and it’s within the industry’s supply chain that the most fundamental aspects of sustainability reside.

Today, consumers expect the ability to choose sustainable delivery options, and retailers must work to accommodate these modern expectations.

From quick delivery to split shipments, the current eCommerce boom has put supply chains to the ultimate test – but it comes at a great cost to the environment. To combat this, technology will always be a useful tool to innovate retail operations for the better, and for the greener. However, on top of this, new customer expectations for sustainability are proving that today’s consumers care more about sustainable delivery than retailers may think.

The fast-shipping ultimatum With the eCommerce boom now fuelling the retail industry, quick delivery and shipping has become the biggest force against supply chain sustainability. The emergence of two-day shipping for “free” became mainstream in 2005, and with the release of Amazon Prime, and it has since started a chain reaction. For these major players, customers who paid an annual membership would be guaranteed two-day delivery for every order at no cost. This removal of shipping costs inadvertently hid the impact of the change in delivery timeframes from the customer, and as a result, behaviour began to change, as did expectations.

SUPPLY CHAIN INSIGHTS

Fast forward about 10 years, and the delivery expectations jumped to one-day delivery and included free returns, still without any real impact felt by the consumer. Today, half of all consumers expect not to be charged for “standard” two-day delivery, and 62% say free delivery is their top consideration, according to new research conducted by Manhattan Associates.

However, in that same survey, 70% said they are prepared to pay extra for speed and convenience, such as one-hour, same day or Sunday delivery.

During this shift towards quick delivery, the impact behind the scenes on the supply chain and on the planet has been staggering.

Global parcel shipments have grown from 44 billion in 2014 to 132 billion in 2020 and are projected to approach 316 billion in 2026.

Then there is the resource capacity crunch — there simply are not enough trucks and drivers to deliver all of these packages and get them where they need to be on time. In fact, industry professionals rate the issue as the biggest challenge for supply chains

45

Analysis

Sustainability is more important to Australian consumers than ever before, with 63% stating they would pay extra for a delivery service that was more environmentallyfriendly.

SUPPLY CHAIN INSIGHTS

47

in 2019. This has led to the rise of the gig economy, leveraging services like Uber and other courier-ondemand businesses, to fill the gap. But filling the need for capacity causes even more vehicles to be on the road, which leads to more traffic and more idling and even more carbon emissions.

Greener delivery options for consumers Another impact of expedited shipments is the inability to consolidate at the distribution centre.

When we place a two-day order for five items and all five are not available in the same warehouse, the retailer must source those items from multiple places around the country, creating multiple packaging, distribution, and delivery events for a single order, without having the time to optimally consolidate those items along the way.

Likewise, as online shopping rates remain high due to the impacts of COVID-19, sustainability is more important to Australian consumers than ever before, with 63% stating they would pay extra for a delivery service that was more environmentally-friendly. New research from Manhattan Associates, Shippit and Greener also revealed; 60% of Australian consumers are open to receiving a delivery at a later date if it meant that it was delivered more sustainably. Due to the ongoing impacts of the pandemic and its convenience, home delivery is now the preferred delivery option for 69% of Australian online shoppers.

However, consumers are not prepared to just accept the convenience of delivery at the cost of the environment, and they are increasingly aware of the growing impact the eCommerce sector is having on CO2 emissions.

Importantly, our research has also revealed that over half (60%) of Australian consumers indicated they often receive their online order in multiple shipments, and 81% of them said that they think this is an inefficient and unsustainable way of delivering goods. In fact, the same number (81%) also said they would prefer to receive their order at a later date if it meant that it would arrive in one consolidated delivery.

A further 64% of consumers stated that they would be even more motivated to accept a longer delivery wait time - with all purchases consolidated into one package - if the delivery fee was free or discounted.

Demonstrating the efforts Australian consumers are already making to be more environmentally conscious, over 45% of consumers said that after placing an order online, they would usually check to see if the retailer offered a sustainable delivery option, such as carbon offset or order consolidation services.

As online shopping delivery rates and the corresponding impact on the environment continue to rise, while at the same time the issue of sustainability continues to move to the forefront of consumer’s minds, retailers and 3PLs will need to make sustainability a bigger priority. Those retailers who don’t make sustainability a core part of their business will likely find that down the track they lose out on this potential competitive advantage and drive environmentally aware consumers to other retailers who are taking steps to make their delivery services greener.

SUPPLY CHAIN INSIGHTS

Sustainability in the retail supply chain Today, consumers expect the ability to choose sustainable delivery options and retailers must work to meet shopper demands. However, in order to provide both continual improvements to operational efficiencies and insights so consumers have what they need to make an educated decision, supply chains need to become more unified. For this to happen, we need more intelligence, more flexibility and more insight injected into the retail supply chain.

In the distribution centre, intelligent warehouse management systems are needed to improve the speed of workflows, which subsequently reduces the need to expedite shipping, optimise carton sizing to maximise vehicle holding capacity, and orchestrate inbound and outbound trailer flow to minimise idle time and backlogs.

On the road, transportation management systems with machine learning are needed to load vehicles more efficiently, optimise routes to drive fewer miles, and model optimal consolidation and backhaul opportunities to reduce the number of vehicles travelling.

Likewise, Order Management Systems (OMS) are critical to helping minimise split shipments and intelligently source from all inventories. This includes alternate store pickup locations like lockers to minimise travel distances, while inventory optimisation technology ensures that supply is more accurately placed where the demand will be, to reduce the amount of store transfers or unexpected replenishments. With innovations like advanced OMS, retailers are also able to navigate disruptions caused by COVID-19 by reviewing the rules of stock allocation, temporarily giving priority to in-store stock over warehouse stock, thus, freeing up any trapped inventory confined within closed stores. This is a great advantage for retailers whose physical stores have closed for lockdowns or have their business operations disrupted for other reasons.

Optimising order sourcing allows retailers to use the stock available in their entire network, wherever it is located. A smart OMS allows retailers to use the 'pool' of physical stores in large urban areas to consolidate group orders to offer more efficient and sustainable delivery options, compared to sending individual items from disparate locations.

This increased delivery efficiency will also help build a stronger connection and more favourable brand perception amongst consumers.

In addition to using store level inventory to ship orders to a customer’s home, it can also be deployed for click-and-collect purchases. With new fulfilment options enabled by the store, consumers can click, collect, and return goods at their own convenience, eliminating courier runs and lessening CO2 in the supply chain. ● For more information on how technology can help improve the sustainability of your supply chain, please click here.

48

Analysis

Three Ways 5G Will Improve Your Supply Chain

WRITTEN BY SUPPLY CHAIN INSIGHTS

Each advancement in network technology brings with it great promise of enhanced features, improved connectivity, and better security. However, the arrival of 5G isn’t merely about enhanced coverage, rather it delivers higher device density, lower network latency and dramatically higher network throughput or data transfer (speed).

It is transformational for enterprise and industry workflows, none more so than for the supply chain sector.

5G is already changing key industries with its faster connectivity and greater bandwidth. What was once considered the stuff of science fiction movies, such as e-health, connected and autonomous vehicles, intelligent traffic systems and advanced mobile cloud-gaming, are already here.

Central to the concept of the ‘digital supply chain’ today is end-to-end electronic connectivity. The ability to track the movement of goods and information in real-time through every area of a supply chain, anywhere in the world, is enabled through 5G.

SUPPLY CHAIN INSIGHTS

49

When applied to environments such as warehouse management, inventory management, transport, logistics, security, 5G will transform supply chains in three key areas.

1. Streamlining Transport & Logistics Although there has been significant investment in digital technologies as a result of the COVID-19 pandemic, the majority of transport & logistics (T&L) organisations still operate with predominantly manual controls, either to track and trace product movement through their logistics processes, or to manage their physical environments and infrastructure.

By leveraging 5G, T&L companies can address a host of issues from lost cargo, misplaced containers, counterfeiting and smuggling. This is done through the use of 5G enabled labelling, real time tracking, public cellular networks and “hand off” to private 5G network AP connectivity, i.e. private 5G networks within warehouses, shipping yards, and domestic or international dock yards.

From the moment an item is “tagged” at the point it is packaged by the manufacturer, it can be traced in real-time from packing to wholesale order fulfillment, through to loading on a dock, to transporting by land, air or sea. Tracking capabilities extend all the way to the end point of sale or delivery to a customer’s front door, delivering enhanced product security and improved customer service.

2. Smarter Warehouse Management & Robotics Humans are increasingly less visible and less required as part of warehouse management functions. Robotics can speed pick and pack activities, through to stock movement or placement for storage in warehouses, enabling businesses to streamline operations and have staff focus on tasks that add greater value. Augmented Reality (AR) and Virtual Reality (VR) technologies powered by 5G are further reducing risk and cost, and increasing agility and flexibility, and empowering lower skilled resources to complete higher skilled tasks.

Today an item in a warehouse with a single 5G tag attached can be tracked in 3D space, in realtime. It can be unloaded from a truck into a loading dock by robot forklifts and it can be shuffled around a warehouse by autonomous micro-robots that have 4K cameras connected over 5G to enable movement.

For products that need to be located, a human with AR glasses (or simply using a smartphone with an in-built camera) can be directed via AR

SUPPLY CHAIN INSIGHTS

to locate the package, scan its 5G tag and edit or update details in an inventory management system instantaneously. This helps to improve stock visibility processes for supply chain accuracy and omni-channel activity.

3. Inventory Control data becomes Enhanced Fleet Management Significant technology enhancements are being made in key areas of transport, from trains and planes, to shipping and trucks. Although advancements in areas like autonomous driving and a future of driverless transport attract much attention, major transformation is actually taking place in areas like loading, tracking, tracing and monitoring of what’s being transported.

5G capabilities are accelerating almost all of those developments, which indirectly are also making fleet management smarter, safer, while reducing costs. For example, by tracking what is loaded on a truck, you are in effect tracking the truck, and its load, its speed and direction, time of departure, time of arrival and loading time.

5G tags on products, crates, containers, are all producing data that can be used to produce a view of your fleet and offer data to help make smarter operational decisions. This same data can also be fed back to the driver to help them make better decisions around the best route to take based on how packages are stacked in the truck to ensure efficient unloading occurs.

Where should businesses start their 5G journey The adoption of 5G will ensure that supply chains become more integrated than ever before.

We will see greater integration with manufacturing, allowing generic items to be shipped to local distribution centres, where 3D printers and painting devices can then tailor them to specific client requirements.

There will also be greater integration with finance, so that as goods move in one direction and funds move in the other, the data can also move in both directions.

The bottom line is that 5G has arrived and it requires immediate attention. History shows that those who move early gain a lead on their competitors, and often that lead can be so great that their competitors never actually catch up. ●

50

Industry Updates Title

Why ACRs Should Lead Your Warehouse Automation Project Today WRITTEN BY JULIAN BRANCACCIO, NATIONAL DIRECTOR OF SALES ANZ FOR HAI ROBOTICS

Never before has the competition for warehouse and fulfillment labour been so fierce, strongly driven by sustained growth in B2C channels. In the short term, businesses are having to offer higher wages, bonuses and flexible working conditions to attract staff. But the long-term implications of a high reliance on labour and manual processes are clear: automation in warehousing is no longer just nice to have but an imperative for sustainable growth.

In such an environment, ACR systems allow DC’s to meet demand in a flexible and highly efficient manner. Business operators can drastically elevate warehouse throughput by adding ACRs or highspeed loading and unloading workstations without refitting existing facilities. And unlike traditional automation solutions that require months-long planning and year-long implementation, the ACR systems can be easily deployed in several weeks and bring little disruption to ongoing operations.

Higher pick rate with huge SKUs Huge and ever-changing SKUs are common with e-commerce and retail orders, making piece-picking a heavy and laborious duty in warehouses. ACRs that move totes/cartons, instead of a whole rack, are adept at order fulfillment in such scenarios. By planning efficient picking routes to reduce travel time and establishing organized picking processes, the ACR systems enable more efficient order fulfillment with less human intervention and fewer human errors.

Higher space utilization ACRs boast a picking height of up to 10 meters, meaning that almost every inch under the ceiling of a 10-meter warehouse can be used for storage. This feature sets ACR systems apart from rack-moving systems that generally cover a space of no higher than 4 meters. Meanwhile, a greater storage density can be achieved with the same shelf height when using the

ACR systems. The slim ACR chassis design allows narrower aisle width and precise picking supported by AI algorithms permits more efficient use of shelf space.

How ACRs have helped Booktopia to increase capacity and improve fulfillment Australia's largest online bookstore Booktopia deployed ACR technology to increase capacity and improve fulfillment and putaway rates at its national distribution center (DC) in Lidcombe, NSW. For the past seven years, Booktopia has been exploring ways to add storage and packing capacity to its existing DC. While capacity was the key driving factor for the project, the efficiency improvements for picking and putaway also gave Booktopia further opportunities to improve the customer experience.

ACR technology from Hai Robotics allowed Booktopia to improve its putaway rates by an impressive 800 percent. The robots use 3D visual recognition technology to identify goods without codes, resulting in faster inventory counts through shelf scanning. It supports multi-size cartons and tote picking and can be applied to multiple business needs. Furthermore, the robots use artificial intelligence technology to establish which SKUs are in demand and will re-organize the inventory accordingly, resulting in further efficiencies.

Wayne Baskin, CTO at Booktopia, said:

"With this solution, the efficiencies we get from pick and putaway drive efficiencies in other areas of the business.

"For example, our dock is now much more efficient as we can put away so much faster so we can ingest stock more quickly." ●

SUPPLY CHAIN INSIGHTS

51

Industry Updates

The Importance of Last-Mile Delivery in eCommerce WRITTEN BY LEIGH WILLIAMS, CEO AND FOUNDER OF ESTORE LOGISTICS

As the economy begins to recover, many retailers are reflecting on the past year and considering focus areas where they can grow their business. A majority will name sales as their number one priority, and understandably so — more sales equates to a direct increase in cash flow. However, if retailers want to increase sales permanently, as opposed to a short-lived boost, investing in long term customer retention and satisfaction strategies, particularly through optimised fulfilment and delivery services, is crucial.

Good sales retention means developing and maintaining relationships with your customers long after they purchase a product, generating loyalty in your brand.

Repeat purchasers, who already know and love your brand, tend to buy more often and spend more than newer customers.

Additionally, they’re more likely to recommend you to their friends and family, generating new sales completely organically.

If 2020 has taught us anything, it’s that consumer demands are changing and it’s imperative that retailers adapt to meet them.

Following the uproar generated by Aussies waiting multiple months to receive their orders due to the unprecedented surge in online retail, we know consumers have very little patience for delayed deliveries. A focus on the last-mile strategy is vital. In fact, shipping times are often the deciding factor when choosing which retailer to buy from.

To ensure products can be picked, packaged and delivered as quickly as possible, retailers should consider stocking with warehousing and order fulfilment

SUPPLY CHAIN INSIGHTS

providers. eStore Logistics is Australia’s largest ecommerce-focused fulfilment provider, built to service online retail order fulfilment profiles and volumes. It uses state-of-the-art technology, automation and logistics capabilities to provide a worldclass warehousing and fulfilment solution for ecommerce and omni-channel retailers. eStore Logistics recently unveiled the largest ever rollout of AI-enabled robots in Australian retail fulfilment across two new facilities in Melbourne’s western suburbs.

The distribution centres will handle up to approximately 95,000 orders each day for brands including Kogan.com, Temple & Webster, Patagonia and MTB Direct. These two new facilities will be equipped with over 200 Autonomous Mobile Robots (AMRs)

that will transform ecommerce in Australia by fulfilling orders fast enough for retailers to offer affordable same day delivery services to customers.

The advanced solution will also allow for flexible delivery options such as 4pm cut off for same day shipping, express deliveries, parcel collection locations that are open after hours, and parcel redirection.

While sales should be a vital consideration for growing your business, it’s imperative to strip this back and build a strong customer base first.

Last-mile delivery options and a seamless shopping experience is just one of the ways you can increase customer retention, ensuring your brand is always the first port of call. ●

52

Analysis

Enhance your Supply Chain and Boost your Customer Experience WRITTEN BY SANDEEP BHARGAVA, MANAGING DIRECTOR, APJ, RACKSPACE TECHNOLOGY

It can feel like we are living through a period of accelerated disruption.

From fundamental changes in supply chains, increased global competition and the evolution of routes to market, the challenges facing businesses today are daunting.

At the same time, customer expectations continue to evolve and increase. Instant gratification is the standard, and if your digital experience can’t deliver it, customers will leave to find a business that can.

To help address these demands, businesses are looking to transform their approaches to sales, marketing and supply chain management. With the right digital solution, you can create an experience that connects your business, supply partners and channel partners — so you can adapt to market trends and stay ahead of customer needs.

Now is the time to transform Although the COVID-19 pandemic caused 55 percent of surveyed businesses to delay their digital transformation and modernisation plans by six months or more (Rackspace Technology survey, June

SUPPLY CHAIN INSIGHTS

2020), now is not the time to put the brakes on your supply chain modernisation initiatives.

By delivering a strong digital customer experience, you can gain a competitive edge that can support your business recovery. After all, customers will remember those companies that came through for them, and those that didn’t.

Take this opportunity to build a dynamic digital experience in which your businesses, supply partners and channel partners all share and collaborate in a transparent manner.

Data drives devices to the edge IDC predicts that by 2025 there will be over 150 billion machine sensors and other connected IoT devices streaming data continuously. Further, IDC says that edge computing is poised to be one of the main growth engines in the server and storage market for the next decade and beyond.

The advent of 5G networks, which are expected to be 10 times faster than 4G, further increases the need for speed. Edge computing supports more sophisticated applications, especially those that need to overcome latency and bandwidth limitations.

53

It eliminates long distances between devices, bringing the power to them wherever they run.

Organisations that have already embraced edge computing are gaining several significant advantages, including: • Real-time responsiveness — As the volume, variety and velocity of data from more connected devices increases, localised network resources deliver real-time value by enabling faster interpretation and processing.

• Reliability — The edge delivers reliability in a world where different devices have different requirements for processing power, electricity and network connectivity.

• Cost efficiency — As data moves faster decisions can be made faster, which can help reduce costs. Also, the reduced reliance on centralised data processing in the cloud can curtail network overhead costs.

One key area of weakness in edge computing can be data security. The problem stems from the wide range of devices used with a secure centralised or cloud-based system. This issue can be exacerbated with the use of IoT devices, which have a documented history of being points of vulnerability in network security. However, distributed network architectures make it easier to lock down and isolate compromised system components, and also reduces the volume of data at risk at any given time.

On the edge of supply chain efficiency

Nearly every industry has deployed or is developing technological innovations that can only be successful if they are supported by edge computing.

The edge could improve business operations in a number of ways, such as supply chain efficiency, machine maintenance, and data optimisation. A few examples of cases from three industries include: • Supply chain sensors in healthcare manufacturing — A shipment of temperaturesensitive pharmaceuticals could be monitored from the time it leaves the factory until it reaches the pharmacy.

• Predictive maintenance in manufacturing — With edge computing, IoT sensors can monitor machine health and identify signs of timesensitive maintenance issues in real-time.

•

SUPPLY CHAIN INSIGHTS

Fleet management — Efficient means of network transmission can maximise the value potential of fleet telematics data for vehicles traveling to distant locations.

All of these innovations and others are fuelling the rapid growth of edge computing in the supply chain.

Before COVID-19, the research company predicted that the edge computing market size would grow from $2.8 billion in 2019 to $9.0 billion by 2024.

Key factors driving the edge computing market across supply chains include the growing adoption of IoT, the rising demand for low-latency processing and real-time decision-making solutions, the need for surmounting exponentially increasing data volumes and network traffic and, of course, the expansion of 5G deployments.

Retail’s future on the edge Research by MarketsandMarkets predicts that retail will be the fastest-growing segment of the edge computing market largely due to the high volumes of data generated by IoT sensors, cameras and beacons that feed into smart applications.

Edge computing will allow this data to be more efficiently collected, stored and processed than is possible on cloud alone or an on-premises data centre.

One example of these new innovations in use is the “mini Tesco” grocery stores in the United Kingdom and Ireland. These smaller regional stores are finding success by delivering a higher degree of personalisation through their product offerings and promotions. In order to do that, stores must have a clear understanding of local consumer demand and knowledge at the micro level of which products are selling and which promotions are appealing. This impacts everything from product placement to the supply chain. As a result, with data and analytics closer to home they can deliver exactly what their local customers want.

The race to the edge Going forward, more organisations will be assessing the potential to leverage edge computing to meet their specific needs.

The reality is that no one can put data centres in every region to meet increasingly localised power demands. Edge computing enables us to leverage the fullest capabilities of today’s leading-edge innovations closer to the tools that need them. ●

54

Analysis

Efficient Returns Management Benefits the Customer, Retailer, and Environment WRITTEN BY ROYSTON PHUA SUPPLY CHAIN PRACTICE LEAD FOR APAC REGION AT ZEBRA TECHNOLOGIES

In many jurisdictions, online returns are a right under consumer law.

Globally, customers now expect a smooth and easy returns process from all retailers. Although returns don't have to be offered free of charge, it’s a big selling point if they are.

The modern consumer frequently over-orders: an eye-watering 30% of online purchases are returned on average – a number that’s more than three times higher than the 9% return rate experienced by traditional brick-and-mortar stores. One of the implications of this trend that cannot be ignored is environmental damage at the expense of convenience.

With the rise in global events, campaigns, and movements like Earth Day, it’s clear that the future of our planet is a concern for people across the world.

So, even though consumers may be driving demand for convenient, hassle-free returns options, they also feel strongly about the effects of climate change, sustainability, pollution, and waste. More informed than ever, they like to interact with businesses that demonstrate exemplary Corporate Social Responsibility (CSR).

SUPPLY CHAIN INSIGHTS

This is especially the case for millennials, of which 87% would be more loyal to a company that helps them contribute to social and environmental issues.

With this in mind, retailers are facing a difficult balancing act: optimising the efficiency of reverse logistics and keeping the customer satisfied, whilst minimising impact on the planet. That is why it is so important to understand how supply chain visibility, intelligent loading/shipping and the use of RFID tracking and drop-off/collection networks can be utilised to achieve this balance.

Supply chain visibility that delivers With an increase in global logistics year-over-year (of which eCommerce constitutes a large portion), maintaining visibility into the supply chain from the warehouse right to the last mile is becoming essential for efficient deliveries and returns. Picking and sending the correct orders out in the first place, in the appropriate condition, can counteract some of the returns generated by supply chain inefficiencies.

Dealing with the collection of unwanted or damaged goods, and possibly sending a replacement, all adds to the carbon footprint of the retailer (and compensation claims), so getting it right the first time is critical. As such, it is extremely important to

55

employ smart technology in the warehouse, which provides real-time data about customer interactions and enables you to honour cancelled orders, even if the request comes in at the last minute.

Supplying barcoded labels or packaging with goods before they leave the warehouse is an effective way to ensure any returned packages can be tracked and sorted correctly, to control waste and re-use stock where feasible. Some retailers are doing this already; their eCommerce systems anticipate that a customer may plan to return some or all of the order (because he or she ordered the same shirt in different sizes, for example).

Once returned, barcodes, RFID technology, scanners and mobile computers can pull up product details to help assess a product’s suitability for resale before it is placed back in stock. From an environmental perspective, this approach maximises reuse, recycling, or recirculation, ensures products are not simply binned or later lost in the system, and reduces unnecessary transportation.

Intelligent loading and shipping are also key At the loading dock, managers cannot physically view all dock doors to oversee operations, and staff are often inexperienced seasonal workers or not yet fully trained. Relying on personnel to judge truck volume by their eyes alone leads to improper loading and poorly-informed decision making, resulting in wasted space and sometimes dangerously-stacked goods. Shipping ‘air’ instead of parcels is clearly a waste of time and money, with excess trucks on the road leading to more fuel consumption and pollution.

Forward-looking companies realise that maximising trailer space makes the delivery process more competitive, efficient, safe, and secure – and of course environmentally friendly.

In order to future-proof your operations, you need visibility into key load metrics, ensuring every load is space efficient. It will come as no surprise that a data-driven approach can provide incredibly smart solutions.

Trailer monitoring systems such as Zebra SmartPack™, 3D sensors and red, green, and blue (RGB) cameras can analyse loading operations in real-time, calculating the build profile of a container/truck in terms of density, fullness, and weight. Information is then translated into a userfriendly dashboard (viewable on a mobile or static device), with alerts triggered by scenarios like idle bays or under-loaded trucks. This smart loading also ensures packages are stacked appropriately so as to avoid damage – reducing the likelihood of a return.

Once on the road, GPS, RFID, scanning, and camera technology provide real-time data on deliveries, including the last-mile delivery. Although this is nothing new, it is a key step in eliminating redelivery attempts or claims of non-delivery (leading to unnecessary mileage, pollution, and reordering).

This visibility is of interest to all supply chain stakeholders and shortening the delivery window is more convenient for customers too.

Single collection/drop-off points for deliveries and returns like parcel shops, lockers and combined retail stores are proving to be efficient solutions across APAC. These single-point locations allow you to reduce delivery time and mileage through consolidated shipments/collections and could potentially end the common consumer issue of missed deliveries. Fleet management via route planning and optimisation ensures no journey is a wasted one and keeps the chain moving. Imagine a concierge for a whole suburban area, not just for a residential block.

In Zebra’s recent study The Future of Fulfilment, 68% of global retailers ranked online returns as a key challenge – a challenge that is financial, logistical, and environmental.

The eCommerce retailers that will thrive in the future are those who are environmentally conscious as well as customer focused.

With millions of parcels in the supply chain, smart data-driven solutions from the point of order are the only way to keep pace with customer demands, as they currently offer the best way to facilitate end-toend visibility and intelligent decision-making. ●

SUPPLY CHAIN INSIGHTS

56

Industry Updates

ASCL Awards Nominations Are Now Open The Supply Chain and Logistics Association (SCLAA) is holding its annual Australian Supply Chain and Logistics Awards (ASCLA) on November 4 at the Park Hyatt in Melbourne. These awards are industry’s oldest and most prestigious awards and will celebrate its 60th anniversary in 2022.

Submissions are now open for nominations in the following categories:

Finalist/Shortlist announced: October 3, 2022 SUPPLY CHAIN INSIGHTS

Training, education, and development remains a vital part of allowing knowledge to be utilised for new ideas and supply chain improvements to be discovered and then implemented. This award will be presented to a company that can best demonstrate its commitment, application, and results of providing training, education, and development of its people.

ASCL International Supply Chain Award ASCL Industry Excellence Award Prestigious Industry award presented to an outstanding individual who has had an impact across the industry or an impact benefitting the industry as a whole and/or across time.

ASCL Supply Chain Management Award Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. This award recognises an organisation that can demonstrate significant achievement or improvement within a section or across their entire supply chain.

ASCL Future Leaders Award This award provides an incentive and recognition to an outstanding Supply Chain Industry Future Leader and to encourage and support leadership across the industry.

ASCL Automation, Robotics or Emerging Technology Award

Submissions close: September 23, 2022

ASCL Training, Education & Development Award

The supply chain world is changing quickly, and physical technology is making a huge impact. This award recognises that in addition to data management, significant impacts are occurring through devices, robotics, automation, wearables, and other emerging physical technologies.

In recognition of global supply chains, the ASCL International Supply Chain Award is given to a company, institution or an individual that operates internationally.

Either an Australian entity with international impact, an international entity with impact on the supply chain industry in Australia, or an Australian company impacting supply chain internationally.

ASCL Environmental Excellence Award ASCL Environmental Excellence Award recognises corporate leadership or projects within our industry contributing to environmental corporate responsibility, the circular economy and/or protecting the environment.

ASCL Big Data, IT & Business Intelligence (BI) Award This award focuses on digital innovations that improves or offers a new way of delivering value to the supply chain using Big Data, IT and BI. Award nominees will demonstrate where applying use of existing or new digital technologies, methodologies or frameworks have provided significant improvements to their management of information and/or their supply chain processes.

ASCL Start-Up Award ASCL recognises that any start-up company faces a tough road. This award recognises those tenacious individuals and companies who push through from inception to success.

57

ASCL Awards Gala Dinner The annual ASCL Awards gala dinner recognises the outstanding achievements of supply chain and logistics professionals and organisations across Australia, celebrating industry excellence and championing collaboration, innovation, and success.

Nearly (400) people attended the last ASCLA event earlier in 2022. The SCLAA encourages industry professionals, companies, and associates to join again, in what is expected to be another stellar evening.

Ticket registrations open: Supply Chain and Logistics Association of Australia Ltd - ASCLA 2022 (sclaa.com. au) Awards Night: November 4, 2022

ASCL Awards Sponsorship Opportunities Showcase your organisation, strengthen brand awareness to industry leaders, and be an Ambassador of Excellence by recognising its highest achievers.

Partnerships of Strength allows sponsors to invite their valued clients or associate companies to become a cosponsor.

Sponsorship opportunities: The Australian Supply Chain & Logistics Awards - ASCLA Sponsorship For all enquiries please contact the SCLAA Secretary on secretary@sclaa.com.au or 1300 364 160.

SUPPLY CHAIN INSIGHTS

58

Industry Updates

Sigma Healthcare Supports Growth by Automating Operations with Dematic WRITTEN BY SUPPLY CHAIN INSIGHTS

Australian pharmaceutical wholesaler, Sigma Healthcare, recently automated operations at its Perth and Brisbane distribution centers (DCs) with high-efficiency Multishuttle storage and buffering and a Goods-toPerson (GTP) Picking Solution from Dematic.

Sigma selected the fully automated Dematic GTP solution as the central system to improve operational efficiencies at its two new DCs in Perth and Brisbane.

Sigma’s switch to automation stemmed from previous supply chain challenges experienced from legacy systems, restricting the ability to continue improving service delivery to customers.

“Warehouse and logistics have been an area of significant focus for Sigma over the past three years. With the pharmaceutical market as competitive as it is in Australia, it was clear that we needed to optimise these two new DCs to accommodate current and future demands on our supply chain,” says Sigma national operations manager of logistics, Paul Brown.

In a GTP system, items are delivered directly to pick stations, eliminating the non-value-added time needed for operators to search for items. A GTP system typically works by receiving inventory at decanting workstations, where operators scan bar codes and transfer items into inventory totes.

The inventory totes are conveyed and automatically stored in the high-density Dematic Multishuttle storage buffer. When needed, the Multishuttle retrieves the inventory totes in the required sequence, and they are conveyed to the picking stations.

Lights and graphical instructions direct operators to pick the required items from the inventory totes and place them into order containers. When an order container is complete, it is automatically routed to the packing area. Inventory totes then return to the Multishuttle storage system.

For Sigma, the GTP system automates picking and buffering operations, meaning orders are picked, buffered, and then

SUPPLY CHAIN INSIGHTS

sequenced to delivery vehicles in the specific order required.

This process optimises the entire picking and delivery process by organising orders accurately, efficiently, and much faster than manual operations.

“By optimising these new DCs through automation, it was clear that this kind of technology was a natural step forward for Sigma as a business. Pharmacies are constantly pushing Sigma as their sole distributor for increased service levels, which were just not achievable at previous operation rates.

"By initiating a more innovative approach to picking operations, we can make the most of our two new DCs with advanced automation technologies ensuring the highest levels of efficiency,” adds Paul.

Through the deployment of the GTP Solution, Sigma has subsequently made significant progress to its initiated business transformation program.

The GTP solution is uniquely attuned to the pharmaceutical conditions of Sigma’s DCs. An essential part of this solution’s design was for it to be able to cater for Sigma’s distinctive storage requirements.

For example, some products require refrigeration (between 2° and 8°C), while others need to be stored in a vault or highly secured environment – with both having a lot of regulations around them.

By understanding the requirements of the products within the DCs, the GTP solution cohesively combines its automation capabilities with the existing infrastructure of the DCs, which effectively boosts overall productivity without the risk of product damage.

With the integration of an advanced automated goods-to-person picking system, Sigma can now achieve high operational efficiency and accuracy rates and improve its service and delivery levels to meet customer needs. ●

59

Next Issue

Look out for the next issue For all of your latest supply chain industry news, be sure to join our community on LinkedIn

We will be taking a detailed look at the issue of “How the customer experience is transforming supply chains.”

Today, businesses need to foster positive customer experiences throughout the entire supply chain, otherwise they will struggle to meet end user expectations. Supply chain traceability and providing visibility of goods-movement has never been more important to consumers, so how can businesses ensure their logistics operations are as reliable, efficient, transparent and accountable as possible?

For more information or story suggestions, please contact: editor@supplychain-insights.media For advertising enquiries, please contact: advertising@supplychain-insights.media Visit our website: www.supplychain-insights.media

SUPPLY CHAIN INSIGHTS

60

Supply Chain Insights

Digital Magazine Subscribe Now

For the latest news on Trends, Technology and Talent changing the face of Supply Chain and Logistics across APAC. www.supplychain-insights.media

SupplyChainInsights Issue Four

News, Trends & Technology for APAC Supply Chain Leaders