Supply Chain Insights | Issue Ten

Supply Chain Insights

Turning Reverse Logistics into a Strategic Asset

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 supply chain and logistics industry.

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

In this edition, we explore how organisations are harnessing advanced technologies to streamline processes, enhance visibility, and improve decision-making in reverse logistics. What was once seen as an unavoidable cost is now being transformed into a strategic asset. Features editor Mel Stark delves into this shift, revealing how reverse logistics can drive value and competitive advantage. Amid economic pressures, Australians are cutting back on spending, leading retailers to turn to technology for improved customer experiences. Michael Dyson of SOTI highlights the increased use of devices and apps in retail and the need for effective device management. Additionally, John-David Klausner of Loop discusses how retailers can balance preventing return abuse and fraud

with maintaining customer satisfaction.

We also discuss global supply chain fragility, compelling Australian organisations to evolve their strategies. Glen Lawson of Appian, along with experts from Tata Consultancy, KPMG, Deloitte, and Spark Equation, emphasise the importance of adaptation, automation, and technology in building resilient supply chains.

Trust is crucial in supply chains, enhancing financial performance and resilience. Chris Coldrick of Deloitte Australia highlights the importance of investing in technology to bolster supply chain reliability and agility.

We hope you enjoy this edition of Supply Chain Insights Magazine and look forward to your feedback!

For more information or story suggestions, please contact: editor@supplychain-insights.media

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Visit our website: www.supplychain-insights.media

News & Insights

Dematic Strengthens Presence in Middle East with New Saudi Arabia Office Opening

Dematic, a leading global automation technology provider, has announced the opening of its new office in Riyadh in the Kingdom of Saudi Arabia.

This strategic expansion further solidifies Dematic's commitment to the Middle East region and reflects its dedication to delivering innovative solutions tailored to local market demands.

“The opening of our office in the Kingdom of Saudi Arabia is a significant milestone for Dematic,” says Mithun Perinchery, Head of Sales for the Middle East, Turkey & Africa. “We have seen tremendous success in the UAE, and expanding into Saudi Arabia

allows us to further leverage our global expertise and provide solutions that meet the evolving needs of our customers in the Gulf Cooperation Council (GCC) region.”

Dematic’s longstanding presence in the Middle East, dates back to 2004 and the company is well recognised for being chosen as a trusted automation provider by the Landmark Group for their expansive O-mega automated distribution centre.

Dematic’s strategic focus on bringing

new technology and innovative solutions to Saudi Arabia aligns with Saudi Arabia's ‘Vision 2030’, which aims to empower citizens and businesses to reach their full potential, diversify the economy, support local content, and drive innovation and growth across various sectors.

With a focus on industries such as food and beverage, retail, e-commerce, pharmaceuticals, healthcare, and automotive spare parts, Dematic aims to address the growing demand for automation solutions that maximise capacity and productivity and enhance efficiency, throughput, speed and accuracy. The solutions feature Dematic software and technologies such as automated storage and retrievals systems (AS/RSs) and good-to-person (GTP) systems that included Dematic Multishuttle® and AutoStore™, powered by Dematic.

“Dematic is excited to bring its worldclass automation solutions to Saudi Arabia,” says Michael Jerogin, Executive Vice President, APAC and EMEA, Dematic. “With our local presence and global expertise, we are well-positioned to support the region's ambitious growth plans and contribute to the advancement of its logistics and supply chain infrastructure.” ●

Former KPMG Partner Tristan Butt Named TMX Transform’s New Chief Operating Officer

Former KPMG Consulting Head of Retail, Tristan Butt, has joined TMX Transform as its new Chief Operating Officer, appointed to oversee its Asia-Pacific business operations, and help clients solve their most pressing supply chain challenges across the region.

Tristan brings with him over two decades of industry experience across Australia, the United Kingdom, and Europe, most recently with KPMG, where he was Partner in the firm’s Customer and Operations Advisory and led the retail sector for the ANZ Consulting Division.

He combines strategy with a deep understanding of the end-to-end value chain, having worked with iconic FMCG and retail brands including Woolworths,

Zebra Technologies Introduces Automation Solutions to Empower Connected Workers

Zebra Technolgies today announced new enterprise mobile computing and intelligent automation solutions designed to enable an agile, resilient supply chain with the power of a connected workforce.

Zebra’s new RS2100 wearable scanner – the industry’s smallest back-of-hand (BOH) scanner – enhances productivity and delivers new levels of comfort to workers. The unique mount leaves the palm completely unobstructed, providing greater freedom.

Zebra also launched the WT6400 and WT5400 wearable computers, engineered to streamline hands-free workflows while enhancing comfort. These provide more flexibility for picking orders, sorting items, and managing inventory with greater

Amazon, Mars, Unilever, and L’Oreal.

“TMX is committed to ensuring their clients succeed in making their supply chains a point of difference. Their end-to-end offering is unrivalled, and the people are the best in the business at what they do, which is what attracted me to TMX,” Tristan said.

“I’m looking forward to working alongside our industry talent to deliver best-in-class supply chain solutions for our clients, as well as supporting TMX’s growth, particularly when it comes to collaborating across international markets.”

Supply chains now demand immediate attention and are the focus in boardrooms worldwide. Companies must integrate supply chain digitisation, visibility, sustainability,

efficiency and accuracy.

Operations leaders in the manufacturing, warehouse, retail, and transportation and logistics industries continue to grapple with fostering resilient supply chains amid heightened demands for speed and accuracy, ongoing labor shortages, and economic uncertainty. Recognising the criticality of an optimised supply chain, 89% of decision-makers surveyed in Zebra’s 2023 Global Warehouse Study say if their organisations do not invest in technology to improve operations, they will not meet their business objectives.

Connected Frontline Workers Drive Productivity

According to Zebra’s study, eight in 10 decision-makers and frontline workers said using more technology and automation would help meet or exceed productivity goals. In addition, decision-makers (54%) and workers (49%) agree addressing worker comfort and ergonomics is a top workforce initiative. These solutions are the key to enhancing workflow efficiency and device security across the retail, warehouse, manufacturing, and transportation and logistics industries. ●

and resilience, ensuring it underpins their business operations and enables growth.

“Our clients are facing tough economic conditions, increased cost of capital, labour shortages, too much inventory and end-toend visibility challenges, which has fuelled the expansion of our business worldwide,” TMX Transform CEO, Travis Erridge, said.

“This global expansion meant we needed a COO who could execute at the highest level against significant supply chain complexities and requirements. Tristan was hand-picked to help take TMX to the next level, connecting our divisions and enhancing our operational effectiveness globally. Tristan brings unique industry and consulting perspectives to TMX that will be instrumental in our future success.”

TMX is comprised of former client-side practitioners, providing strategic guidance and execution to address supply chain challenges globally, and to connect supply chain transformation with critical business functions.

Tristan is working alongside TMX cofounder and Executive Managing Director, Milan Andjelkovic, and Senior Advisor, Geoff Thomas. Tristan, who moved to Australia from the UK in 2014, commenced May 1 and reports to CEO Travis Erridge. ●

Manhattan Associates Named a Leader in Gartner® Magic Quadrant™ for Both Transportation and Warehouse Management System

Manhattan Associates Inc., a global leader in supply chain commerce solutions, proudly announces its dual recognition as a Leader in both the Gartner Magic Quadrant for Transportation Management Systems (TMS) and the Gartner Magic Quadrant for Warehouse Management Systems (WMS). This marks the sixth consecutive year Manhattan has been recognised for TMS and the sixteenth consecutive year for WMS, highlighting the company’s sustained excellence and leadership in supply chain technology.

Manhattan Active® Transportation Management (TM) has been praised for its comprehensive capabilities and robust performance, ranking among the top three vendors in Level 3, Level 4, and Level 5 Complexity Use Cases in the Critical Capabilities Report. As supply chains become increasingly complex, enterprises seek solutions that can seamlessly orchestrate transportation and distribution processes. Manhattan Active TM stands out with its cloud-native technology architecture and unified supply chain platform, which breaks down execution silos to provide real-time visibility, predictive analytics, and automation capabilities. This innovative approach enables companies

to eliminate inefficiencies and make datadriven decisions, a crucial advantage in today's fast-paced business environment.

Bryant Smith, Director of Product Management for Manhattan Associates, expressed his enthusiasm about the recognition, stating, "We are delighted to be recognised by Gartner as a Leader in TMS for the sixth time in a row. Manhattan Active TM is designed to manage every transportation function, across any mode or size of network, and leverages advanced intelligence to solve even the largest and most complex transportation challenges."

Manhattan Active TM can be integrated with Manhattan Active Warehouse Management and Manhattan Active Yard Management, offering a unified supply chain execution system. This integration provides companies with a comprehensive view of their distribution network, unlocking optimisation opportunities that traditional siloed systems cannot offer.

Simultaneously, Manhattan Active® Warehouse Management (WM) continues to set the standard for warehouse management solutions. Recognised as a Leader for the sixteenth time since the inception of the Gartner WMS Magic Quadrant in 2006, Manhattan Active WM is renowned for its cloud-native, microservices architecture

that supports scalability and ease-of-use. This advanced infrastructure is suitable for a wide range of warehouse complexities, from medium-sized operations to the world's largest, most automated distribution centers. Manhattan Active WM transcends basic warehouse operations, facilitating a hyperefficient flow of goods and information.

Adam Kline, Senior Director of Product Management for Manhattan Associates, commented on this achievement, saying, "We are thrilled to be named a Magic Quadrant Leader in Warehouse Management Systems by Gartner once again. We believe this recognition reflects our industry-leading innovation and commitment to unifying every aspect of the supply chain."

Manhattan's comprehensive approach to unifying warehouse, labour, transportation, and yard management into a single supply chain execution solution sets a new standard in the industry. This unification unlocks unique optimisation opportunities and delivers a seamless experience for companies operating in dynamic and demanding environments. Supported by Manhattan's experienced services and support teams, along with a global network of partners, Manhattan Active WM ensures successful implementation and ongoing operational excellence.

Moreover, Manhattan simplifies the implementation process with Manhattan ProActive, a low-code application platform designed for developers to extend solutions built on Manhattan Active® platform technology. This tool enables rapid customisation and deployment, enhancing the flexibility and responsiveness of Manhattan's solutions. ●

Natalia Trewin and Georgia Denton WesTrac Tomago, NSW Come

As one of the world’s largest authorised Cat® equipment dealers, WesTrac knows that the smallest of parts can make or break a machine, and have a big impact on site operations.

At its headquaters in Tomago, NSW, WesTrac implemented an AutoStoreTM automated spare parts storage and fulfilment system from Dematic, which allows WesTrac to keep stock organised, use warehouse space efficiently, and prioritise urgent orders to be ready in just 5-10 minutes.

With the AutoStore solution, WesTrac can get vital parts to customers quickly, keeping Australia’s heavy industry moving.

Learn more at dematic.com/westrac

Supply Chain Leaders Discuss the Key to Success

In the evolving landscapes of technology and supply chain management, the demands on leaders are intensifying.

As industries become more intertwined with rapid technological advancements and complex global networks, leadership qualities can make a substantial difference in achieving success.

Capturing insights key supply chain and business leaders, Bastian Consulting’s latest report, "Key Turning Points that Propelled 20+ Supply Chain/ Business Leaders to Success," delves into the challenges and opportunities within the field. Supply chain management stands as the backbone of businesses worldwide, presenting both formidable challenges and promising opportunities for those striving to make a meaningful impact in their careers.

To understand the driving forces behind their journeys to success, Bastian Consulting asked industry professionals: What pivotal event or experience do you consider as the driving force behind your journey to success in your supply chain/ business career?.

↓ GLENN KEAST, CHIEF OPERATIONS AND TECHNOLOGY OFFICER, COTTON ON GROUP

“I’ve been lucky enough to have had numerous pivotal moments in my life in Supply Chain. I've benefitted from opportunity, simply by being in the right place at the right time.

I've taken on challenges probably beyond my capabilities at the times. I’ve “drunk from the fire hydrant often.” I've had lots of learnt experiences, some very challenging, and I've also had some incredible leaders to learn from in public and private business. However, one experience or lesson that stands above all else that has helped me all the way through my supply chain career was when I was selected as a supply chain SME for an IT project. The project was a national roll out of an ERP system at National Foods Ltd. The project took the best part of 18 months to complete and was a transformational project to join all states together on one system to one way of working!

The experience taught me the importance of teamwork, that excellence in execution is critical, leadership was challenging when making real change and that technology and supply chain are completely intertwined. These lessons and experiences have held me in good stead for a long time, especially the last 7 years where I've had a complete Supply Chain, Operations and Technology role in a growth business like Cotton On.”

↓ MEGAN BENGER, SUPPLY CHAIN DIRECTOR, TMX TRANSFORM

“I’ve

been fortunate to have had a long and interesting career in the supply chain industry, but without doubt, it was relocating to Asia 14 years ago that has most shaped my journey.

I decided early on, that the best way to combine my love of travel with my desire for a successful career was to work overseas. It became the primary goal that I worked towards over the next few years. Overseas roles weren’t easy to come by at the time and tended to be for very senior positions. I was working for a multinational 3PL and was fortunate to be connected to some great mentors. They helped me identify areas in my tactical and soft skills that I could work on to maximize the value I could bring in an overseas environment. Eventually, persistence and hard work paid off and I was offered an opportunity to move to China to lead a department. It was a big role that carried high expectations and a massive life change, so it was with mixed feelings of excitement and pure panic that I boarded the plane. That huge leap out of my comfort zone has paid dividends many times over. It was the starting point for a career working all over Asia supporting some of the world’s biggest companies to develop their supply chains, but more importantly, it has introduced me to many amazing colleagues and friends from all over the world and provided my family with life experiences that are beyond anything I initially dreamed of.”

↓ AGNES ZSOFIA NAGY, SUSTAINABLE SUPPLY CHAIN ADVISOR, SUPPLYZORY

“I was fortunate enough that almost right at the start of my career, I got an amazing opportunity at one of the multinational FMCG companies to manage large-scale product commercialisation projects for multiple countries (regions).

This meant that I had to work with every single function in the business, understand them deeply and broadly at the same time, and had to be extremely proactive to get all the stakeholders align at the right time in order for the projects to be successfully accomplished. All of these together gave me the chance to learn everything that one can only dream of in terms of business management, communication, collaboration, making tough choices, how to realise an idea, how to make it happen and watch them flourish in the end for the benefit of others and myself.

Of course an opportunity like this always comes with responsibilities. In my case, these came in the form of real ownership of everything I had to do. There was very little to no training and I was entrusted to manage everything without much supervision. Lastly, I had to learn as fast as possible as I could not afford not learning from even the smallest of failures I made. This experience was the one that led me to choose supply chain - I needed to satisfy my curiosity and genuinely enjoyed complex problems and business situations.”

↓ LENNY KOSLIANTI, HEAD OF ENGINEERING & DELIVERY, CATCH.COM.AU

“I clearly remember the setting. I was in my early 20s and freshly out of University as Tech Graduate. I sat in my first ever PMO meeting in a Coles board room, rubbing shoulders with GMs, Directors, and Program Managers discussing the status of 18 projects in Coles Supply Chain Transformation Program

At the time, they might as well have been speaking Klingon “build a banana ripening room at RDC”, “automated replenishment”, “factory gate”, “cross dock”?! That particular moment taught me a lot of things: be intensely curious, make time to learn and grow, ask lots of questions, build connections with people and talk about what they know.

My supply chain knowledge grew significantly after that experience and I went on to deliver some of the supply chain programs at Coles and beyond. There are many moments like this which have taught me valuable lessons. I continue to be a lifelong learner both in my personal life and career.”

↓ IOANNIS PAPANTHIMOS, OCEAN PRODUCT MANAGER, TOLL GROUP

“For an individual to be successful in their role, a lot of things have to happen in their working life and not necessarily altogether - for example; dealing with great mentors, having an open mind towards change, be willing to learn new things and of course, be at the right place, at the right time.

Personally, my “revelation” and the thing that has helped me so far in my professional career, was the realization that as industry professionals and potential leaders, we need to be focused on solutions and constantly seek them for our customers, regardless of the obstacles or how difficult any situation might be.

Supply chain is a perpetual process that never stops, with cargo flowing globally every single minute in order to meet customers’ needs and demands. Being part of this process is both challenging and rewarding, as long as we remember that at the end of the day we need to be able to present solutions to our customers and put a smile on their face.”

↓ CHRIS ROE, HEAD OF SALES OCEANIA, TVS SCS AUSTRALIA

“Twenty years ago, I was part of a team that successfully navigated significant disruptions in cargo movement at Australian ports, due to the new Cargo Management Reengineering business model.

While our business encountered challenges during this period, strong leadership encouraged innovation and effective communication. In times of crisis, leaders must actively engage and support their team, prioritise complete transparency and accessibility to stakeholders, foster idea generation, and crucially, acknowledge setbacks as a natural part of progress.

The dedication and empowerment of our team in implementing innovative solutions was crucial in overcoming obstacles for both us and our customers. The knowledge and lessons gleaned from navigating challenges early in my career continues to be highly relevant and beneficial in addressing today's widespread supply chain disruptions.”

Rising Cost-of-Living Pressures Make Return Policies Crucial for Retail Success, Reveals Manhattan Associates Study

As cost-of-living pressures mount, the retail landscape is being reshaped by a critical factor: return policies. New research from Manhattan Associates Inc. reveals that consumers are becoming increasingly cautious with their purchases, making flexible and customer-friendly return options more essential than ever.

Rising Cost-of-living Creates Cautious Consumers

Amid rising costs in Australia, consumers are more likely to return items that don't meet their expectations. According to Manhattan Associates' latest research, 72% of respondents reported that the rising costof-living in Australia has increased their likelihood of returning products, highlighting a shift towards more discerning purchasing behaviour.

“Consumers are more discerning than ever. With tighter budgets, they are less inclined to keep items that do not meet their expectations, making a retailer's return policy a critical factor in their purchasing decisions,” said Raghav Sibal, Managing Director, Australia & New Zealand for Manhattan Associates.

Consumers Consider Return Policies When Purchasing

The research found that a store’s return policy significantly influences consumer purchasing decisions. Over 69% of respondents indicated that a store’s return influences their decision to purchase. Additionally, 40% of respondents will actively research a store's return policy before making a purchase. While many consumers have become conditioned to expect free returns, there has been a notable shift in how they view and interact with return policies, reflecting an unspoken awareness and acceptance of changing policies.

In-Person Returns Brings New Opportunities

With physical store foot traffic impacted by cost-of-living increases, rethinking return policies presents new opportunities for brick-and-mortar stores. A notable 65% of consumers report higher satisfaction with in-store returns, suggesting that encouraging in-person returns can boost customer satisfaction and drive additional sales.

Charging for online returns could incentivise customers to visit physical stores, potentially increasing in-store sales. Furthermore, the rise of 'click and collect' services, preferred by 36% of consumers, enhances the shopping experience by merging online convenience with in-store interactions.

“The surge in retail returns offers businesses a unique opportunity to differentiate themselves by optimising their returns management processes,” explained Sibal. “With the right technology, businesses can drive shoppers back to the store, deliver impactful customer experiences, and offer enhanced transparency throughout the entire returns process. Taking advantage of this opportunity, by offering seamless experiences across channels, enables

brands to set themselves apart from competitors and build a competitive edge.”

Building Customer Loyalty Through Positive Return Experiences

A positive return experience is pivotal for customer loyalty, with 91% of respondents indicating it makes them more likely to become long-term customers.

“Returns are becoming increasingly frequent in today’s omnichannel retail landscape. Customers are leveraging the convenience of purchasing from anywhere at any time, which leaves many retailers facing the challenges of managing returns effectively. Implementing robust returns management technology is crucial for two key reasons: returns can significantly impact retail operations' costs, and the returns process itself can be a decisive factor in retaining customers and fostering long-term loyalty,” Sibal concluded. ●

Unleash Hands-Free Comfort and Productivity With Wearables

In today’s work environment, processes are constantly evolving, requiring employees to spend an abundance of time learning how to use new technology. Companies are at risk of allowing technology to complicate their employees’ day-today tasks and reduce their overall productivity. To avoid this, companies must provide employees with technology that is simple – easy to order, easy to deploy and easy to pair.

This is where wearables step in – offering the operational flexibility needed to replace complexity with productivity. In order for workers to move as fast as possible, their hands must be totally free to pick up, sort, put-away, replenish and pack items. Wearables offer a unique solution to this issue, helping employees streamline operations and flow through their tasks without traditional interruptions.

Wearables offer benefits that are revolutionising traditional practices and enhancing overall efficiency for supply chains. The next generation of hands-free wearables can boost productivity by up to 30%, enabling three people to virtually do the work of four. But how? Wearables foster agility when it comes to managing inventory, logistics and distributions, allowing workers to make informed decisions promptly. By facilitating hands-free interactions, this not only boosts productivity but also reduces the risk of errors and accidents. Additionally, wearables minimise training time for new hires, allowing workers to jump into a new job and feel productive from day one – because neither you nor your workers have the luxury of month-long onboarding periods.

Some of the most popular wearable devices on the market today are ring scanners and wrist-worn computers, and for good reason.

The Benefits of Ring Scanners

When the job calls for simple, ergonomic and effortless wearable scanning, ring scanners are the answer. These small but powerful scanners attach to workers’ hands for an instant productivity boost — enabling them to process more orders, increase order accuracy and meet the fastest delivery times.

The RS2100 from Zebra Technologies is one of the smallest enterprise wearable scanner on the market. Its back-of-hand design delivers a new level of comfort and dexterity, meaning your employees will be able to work easily in any environment. But why else should you consider the RS2100 scanner?

Firstly, your workers can rest assured the battery

will last even with the most rigorous scanning. This scanner is practically weightless and boasts the lowest profile on the market, enabling effortless picking even in the tightest spaces, and leaves the entire palm free, enabling a better grip on items they are handling.

The RS2100 is so easy to use that there’s no need for training — onboarding is nearly instant.

The unique adjustable strap fits comfortably on all hand sizes — they just grab a right or left-hand version and go. With PRZM Intelligent Imaging technology, workers can count on lightning-fast capture of virtually any 1D and 2D barcode, even if its damaged, poorly printed or dirty. The wide field of view provides a large ‘sweet spot’ allowing workers to easily capture any size barcode with point-and-shoot simplicity.

With Device Tracker, you can also pinpoint the location of a missing RS2100, whether it was left behind in a break room or on a warehouse shelf, and set thresholds to ensure you’re alerted immediately when devices are missing. The RS2100 may be tiny, but it’s built for work, designed to handle drops, bumps and spills. It’s been thoroughly tumble-tested and can take 1,000 consecutive 1.64 ft./0.5 m drops to concrete. It’s also sealed to IP54, able to handle a range of dust and spills.

Furthermore, it’s compatible with any Zebra mobile device, as well as consumer smartphones, tablets and Windows PCs. No matter what host you choose, pairing is easy!

The Benefits of Wrist-Worn Computers

Wrist-worn mobile computers are another great option for workers who might be picking orders, sorting goods and managing inventory in the warehouse, distribution centre and manufacturing plant. These devices are packed with innovations that enable unmatched productivity through a new level of hands-free comfort, flexibility and ease of use. When it comes to wearable computing, display size is crucial – to maximise efficiency, workers need to view and seamlessly interact with the information required to complete a task on a single screen. The WT6400 is the latest breakthrough in Zebra’s wearable computer portfolio and a leader in its class, boasting a 4.7-inch display that practically works in any condition — when wet, with heavy gloves and even in the freezer. And the specially designed bezel around the display provides additional protection against the inevitable everyday bumps that a wearable computer will endure — giving you peace of mind in a fast-paced demanding work environment.

The WT6400 also comes with an integrated keypad for any workflows that require intensive manual data input. Its strategic and compact placement allows both right and left-handed accessibility and increases user comfort by reducing arm fatigue. And the keys are optimally sized and purposefully spaced to enable workers to quickly and easily press only the key they want — even with gloves.

Furthermore, all internal system components are freezer-rated to ensure application performance and processing speeds aren’t impacted by the cold. Its extended battery provides full-shift power, even if workers spend the bulk of their shift in the freezer. The rugged design is built to last for years, with specially designed plastics to provide the same level of shatter protection both inside and outside the freezer.

The Takeaway

Prioritise your front-line workers by deploying userfriendly and efficient wearable technology that is tailored to their needs.

This

will enhance productivity, minimise training periods and foster a more streamlined operational environment.

Wearables provides a unique opportunity for you to deploy highly immersive technology, that will provide your workers with full autonomy and the necessary confidence they need feel valued and boost their productivity. ●

Learn more about the RS2100, WT6400 and Zebra’s range of wearables.

With One Crisis After Another in Supply Chain, What’s Happened to Risk?

WRITTEN BY

LINDA VENABLES,

ADVISOR,

TRANSFORM

Despite diligent risk management and contingency planning, I had not even considered the causes of some of the most catastrophic operational disruptions in my supply chain career. Until they happened.

Case in point: on a 13-degree day in April in western Sydney, a hailstorm belted our three-year old distribution centre. The structural impact of the hail itself was not the culprit. The issue stemmed from a subsequent rainstorm, with the hail blocking drainage from the roof, trapping over 200 tonnes of water.

The weight of the water breached the DC roof in two areas, compromising the structural integrity of the building, rendering our key NSW site inoperable, and disrupting the weekly supply of over a million cartons to customers.

A business continuity plan and crisis management process helped the leadership team make quick decisions. Relocating NSW team members and increasing local resources, supplemented our Victorian and Queensland throughput capacity. This increase in capacity, coupled with inventory repositioning and transport reconfiguration, meant customer service resumed within 48 hours. We then secured three local warehousing and distribution

facilities to take us through the 16 months until we could return to the original premises.

This ‘black swan’ and other unimaginable events reveal the limitations of relying solely on the assessment of risk.

Our risk register did not include the neat line item: “unseasonably severe hailstorm results in trapped water breaching the weight limit of the roof”.

But customers have a right to expect a business to continue to operate.

In an increasingly volatile, uncertain, complex, ambiguous (“VUCA”) world, as we seek resilience in our supply chains, we must also plan from a continuity perspective. Failure to manage business continuity can also impact your team members and retention, your brand value, and your shareholders. A continuity plan includes alternative methods of operating, should one or more aspects of an operating model fail; a good plan reassesses the feasibility of such scenarios on an ongoing basis. For example, several factors render long-term interstate supply infeasible, so our plan required local alternate warehousing and distribution. Given the hailstorm impacted eleven other companies in our trading estate, the clarity of our plan saw us move quickly and secure alternative facilities.

The New Meaning of Disruption

Even semantics has been disrupted. ‘Disrupt’ used to mean a game-changing way of shaking up a sector. In supply chain we now see so many concurrent disruptions, the industry has adopted the term ‘polycrisis’ (first coined in 1999 by French theorist Edgar Morin).

Supply chains must achieve performance targets despite the impacts of multiple disruptions.

Disruptions impact physical operations, such as extreme weather events and labour shortages, and the supply of goods, such as geopolitical conflicts. Supply chains need to contend with shifting demand and contradictory consumer behaviour (in apparel, for example, consumers want fast, free returns but for their vendor to operate sustainably) all whilst contemplating the rising tide of ESG compliance requirements and regulations.

Spending time in your business on risk management can be challenging. It is seldom seen as urgent. Risk ownership is often murky. It is clear who has oversight? Who is accountable for the level of risk in a business? The CRO, the Board’s ARC, the CSCO? Has the Board set the company’s risk appetite? And who is responsible for ensuring risk remains in line with the company’s tolerance? Are known risks adequately mitigated and unknown risks contemplated? How are colleagues engaged

are potentially catastrophic, but their scale tends to overshadow the far more likely, smaller risk events.

Consumers now interact directly with supply chains, and therefore represent an increasingly significant risk to businesses.

Today’s consumer is more aware of where products come from (think provenance and modern slavery, traceability, and fraud), how product is made, packaged, and shipped (think resource and energy use and associated environmental impacts), and relies on being able to order at the last minute. The link between the sourcing and manufacturing of products, the operational performance of the supply chain, and the company’s brand has never been more apparent.

As business leaders reflect whether their continuity plans are adequate, I’ll leave you with some more examples of the unthinkable occurring during the span of my career:

• At 6am one Sunday, a nearby fuel depot (Google ‘Buncefield depot’) had an explosion that was so large, it devastated nearby buildings and closed the industrial estate. The impact distorted the roller-shutter dock doors and triggered the sprinkler systems, damaging expensive inventory in an FMCG warehouse a mile away.

• A sprinkler pipe burst in the ceiling of a cold storage facility in WA, bringing down the ceiling, ruining the pre-assembled customer orders and turning the freezer into an ice rink. On the second of January, in the middle of a very hot Australian summer, I did not expect to be searching for ice removal equipment!

• A communications cable was accidentally severed in a nearby field, which took the warehouse network offline. Feeling confident of our BCP, to fail-over to the communications provider’s mobile network, we were dismayed to find all telco customers in the area had the same contingency and the mobile service had insufficient bandwidth.

You won’t feel the impacts of the warehouse roof that never collapses, the devastation of a safety incident that never occurs, or the pressure of staff shortages that don’t transpire. But things do and will break, so whilst it is at times comforting that they may not have broken in your business in recent years, the past is not a good predictor of the future. Businesses need to be confident in their level of resilience. Continuity planning plays a critical role in providing that confidence. ●

We tend to think of ‘risk’ in terms of dramatic physical events: a team member injury, warehouse fire, racking collapse, or systems outages. These

Unlocking Global Ecommerce Expansion: The Importance of Leveraging Existing Supply Chains

WRITTEN BY SEAN WALSH, DIRECTOR, PATTERN AUSTRALIA

For Australian brands, the dream of global expansion often comes with a daunting array of challenges. Traditionally, this expansion required substantial financial investments, local partnerships, and an on-theground presence that many businesses found prohibitive.

However, the rise of specialist global ecommerce partners and marketplaces like Amazon, eBay, and Tmall Global have transformed the landscape, making it significantly easier for brands to scale their ecommerce reach internationally.

One of the critical elements in this transformation is the supply chain, which underpins the entire expansion process. What are the options for Australian brands that want to explore overseas ecommerce options?

Key Considerations for International Ecommerce Expansion

Before diving into international markets, brands need to conduct thorough research to determine if the investment in overseas ecommerce is justified. This involves analysing market demand, competitive landscape, and local regulatory requirements.

Understanding these factors is crucial for developing a successful market entry strategy.

Pricing is another critical consideration. Brands must consider local taxes, shipping costs, and competitive pricing in the target market. Simply converting domestic prices to foreign currencies is not sufficient; a comprehensive pricing strategy that accounts for all additional costs is essential for profitability.

Moreover, brands must adapt their marketing and product offerings to meet the preferences and expectations of local consumers. This may involve translating product descriptions, adjusting packaging, and modifying marketing messages to resonate with the local audience.

Three-Phase Approach to Global Expansion

A phased approach to international ecommerce expansion can help mitigate risks and ensure sustainable growth.

1. Testing Demand: Initially, brands can test demand by offering international shipping from their website. This low-risk strategy allows brands to gauge interest without significant investment.

2. Growing Demand: Once demand grows, open an Amazon account in the target market to drive further brand awareness. Leveraging Amazon, the logistics is more straightforward and cost effective than a company investing in real-estate. Brands can also use Amazon multi channel fulfilment to switch their ecommerce inventory from international fulfilment to local fulfilment fairly quickly.

3. Full Localisation: When confident in their product's performance, brands can establish a local presence with in-region fulfilment. This step requires more investment but offers the greatest potential for growth by optimising product performance for traffic, conversions, and price.

Challenges of Traditional Cross-Border Ecommerce Expansion

Expanding a brand’s ecommerce operations into international markets through traditional means can be prohibitively expensive and complex. Therefore, businesses should work backwards from consumer expectations in order to determine the strategic fit for their logistics offering in any market. This model is usually cross-border, where orders are picked and packed in the country of origin for the business and then shipped cross-border to the end customer by courier or international post. This sees brands navigating various logistical challenges, including international shipping, customs clearance, and local distribution. Each of these steps adds to the cost and complexity of doing business internationally.

Without an on-the-ground presence, brands may struggle to compete with established local players who can offer faster delivery and better customer service. The high costs and operational challenges of traditional cross-border expansion often make it an unsustainable strategy for many businesses.

Strategic Partnerships and Volume Benefits

The most viable strategy for brands looking to expand their ecommerce globally is to seek partners and products that allow for seamless integration into existing supply chains. However, relying on multiple partners across different countries can dilute the benefits of economies of scale and volume discounts. Instead, brands should aim to consolidate their operations with a limited number of reliable ecommerce specialist partners who can provide comprehensive logistics solutions.

Leveraging the existing supply chains these ecommerce specialist partners offer is crucial for maintaining efficiency and cost-effectiveness. When brands tap into the established networks of these partners, they benefit from the provider's logistics expertise, infrastructure, and negotiated rates.

This approach reduces the complexities of managing multiple supply chains and enhances operational efficiency.

For instance, partnering with a global ecommerce accelerator like Pattern can provide brands with the expertise and resources needed to navigate ecommerce in international markets. These partnerships can help streamline operations, reduce costs, and ensure a consistent brand experience across different regions. By integrating into its well-established supply chain, brands can focus on their core competencies while Pattern acts as a logistics provider, managing the complexities of international shipping and distribution.

The Power of Global Marketplace Models

Marketplaces like Amazon also offer convenient models for international expansion. For instance, Fulfillment by Amazon (FBA), helps to simplify the logistics of global selling. FBA allows brands to store their products in Amazon's fulfilment centres, where Amazon takes care of storage, packaging, and shipping. This model is particularly advantageous for brands looking to enter multiple international markets without the need for investment in extensive local infrastructure.

Using FBA, brands can leverage Amazon's vast logistics network, reducing the complexities and costs associated with cross-border shipping. This system not only streamlines operations but also enhances customer satisfaction by ensuring faster delivery times and reliable service. Essentially, FBA allows brands to compete more effectively in mature markets where local fulfilment is a significant competitive advantage.

To make selling via Amazon internationally even more convenient, specialist ecommerce partners like Pattern can also fully manage the Amazon relationship on brands’ behalf.

Global expansion through specialist ecommerce partners and/or global marketplaces offers significant opportunities for Australian brands. However, the key to successful expansion lies in leveraging existing supply chain models offered by partners or Amazon’s FBA, conducting thorough market research, and forming strategic partnerships. By adopting a phased approach and focusing on logistical efficiency, brands can navigate the complexities of international markets and achieve sustainable growth.

The supply chain is the backbone of global ecommerce expansion, and with the right strategies and partners, Australian brands can unlock new markets and reach customers worldwide. ●

For more information, please visit www.pattern.com

Welcome to supply chain commerce

Unify ware h ouse manageme nt, t ransportation management and o rder management

With all your sup p ly chain a pplications on a s ingle p latform, you can b reak down silos, unlock efficie n cies, boost p rofitability and transform execution. Set your most a mbitious goals, Ma n hattan will make them poss ible.

To learn more, visi t m anh.co m.au

Meet the Rugged Tablet that Doubles as a Vehicle-Mounted Computer (and so much more)

In today's world, the demands on transportation and logistics companies are higher than ever. Staff are overextended and under pressure, compliance is complex, and customers expect service and information instantly.

From loading/unloading containers and pallets and cross-docking to inventory management and cold storage, warehouse and logistics companies rely on mobile computing in just about every corner of their operations.

However, businesses traditionally had to opt for single-purpose devices for each of these use cases, as there was no device that could manage all of them seamlessly. This meant purchasing and managing different devices from different vendors, adding another layer of complexity to an already fast-paced environment. Until now.

A Single Platform That Can Do it All

Zebra Technologies has just released its ET60/ ET65, a single platform that can handle every use case across the warehouse, distribution centre, yard and more. Upgrade your vehicle mount computers to the ET60/ET65 and say goodbye to the old way of managing different devices for different applications.

The versatile and rugged ET60 and ET65 tablets are ready for whatever you need — a fixed vehicle mount computer for forklifts, a mobile tablet on the warehouse floor and a laptop in the office. There’s just one platform to purchase and support — simplifying life for IT and giving your operations a new level of adaptability. Best of all, you don’t have to sacrifice any ruggedness or performance for your forklift and material handling applications.

Patent-Pending Rugged Vehicle Dock

Zebra’s new patent-pending vehicle dock enables users to simply lock the tablet into the mount in a forklift or other materialhandling vehicle.

The vehicle dock holds the ET60/ET65

in place under heavy vibration, constant pounding, and operations over ramps and bumps.

The vehicle dock features heated pogo pins to avoid corrosion and loss of connection, two USB Type A ports and one serial port to connect peripherals, a ‘quick release’ functionality and three antenna pass-throughs for strong GPS and wireless signals.

With a compact design to improve operator visibility, it also boasts an adjustable tray option to attach a keyboard, and all ports on the vehicle dock are securely covered in a compartment.

Key Features of the ET60/ET65 Tablets

• Supports the latest wireless connectivity: Faster, more reliable, futureproof connections with support for 5G and Wi-Fi 6E.

• Connects to private 5G networks: Wireless coverage of wide areas in place of Wi-Fi and Narrowband, offering consistent, cost-effective outdoor performance.

• Easy viewing in any environment: The 10-inch ultra-bright 1000-nit display is easy to view in any lighting.

• Rugged reliability: Undergoing stringent IP66, extreme shock, vibration and thermal shock testing – these rugged tablets are built to survive constant pounding.

• Power longest, toughest shifts: Standard battery up to 10 hours, extended battery up to 20 hours, and hot swappable battery mode for both.

• No-battery configurations: It can be powered by the forklift, eliminating the need to purchase and maintain batteries.

• Ready for the freezer: The heated touch panel ensures clear visibility under heavy condensing conditions for uninterrupted cold chain workflows. Only applicable for freezer skus.

• Data Capture: Front and rear camera for occasional barcode scanning or damage good image capture. SE55 integrated scan engine with IntelliFocus™ technology to capture barcodes as far as 12.2m away.

• Easy data input: The touch screen is tuned for glove use; rugged and heated vehicle keyboard for familiar key-based interaction.

• A powerful platform: A new significantly faster Qualcomm processor designed to support the fastest networks, plus artificial intelligence and machine learning apps.

• Supports your legacy applications: With Zebra Enterprise Browser and Ivanti Velocity, it's easy to run your existing warehouse applications.

• Longevity: Comes with 3 years warranty. Unlike consumer grade devices, ET60/ ET65 is available for sale for 4years, eliminating the cost and complexity of mixed model deployments.

The ET60/ET65 rugged tablets from Zebra are put through more real-world tests than any other tablet in its class. What you’re left with is a tablet designed to handle practically anything, and only one device to purchase, manage and maintain. ●

Learn more about upgrading your vehicle mount computers to the ET60/ET65.

Is Your Supply Chain Trustworthy?

WRITTEN BY CHRIS COLDRICK, PARTNER – SUPPLY CHAIN AND PROCUREMENT, DELOITTE AUSTRALIA

Trusted relationships are often critical to supply chain performance. In a recent Deloitte study of 1,000 executives from large global organisations operating complex supply chains, various enhancements were identified as adding “significant value” to an organisation’s financial performance.

Among these, ‘enhancements that improved trust with customers’ were racked as second most valuable. However, while trust is deemed important in boardrooms and to the C-suite, often insufficient attention is paid to this topic. A recent poll suggests only 14% of executives have a way to track stakeholder trust across the organisation, and 63% of board members admit that they either do not discuss trust or have no fixed cadence to discuss trust.

At its core, trust is based on the relationship between an organisation and its stakeholders. Trust is the outcome of high competence and the right intent, which in turn typically rests on four factors of trust: capability, reliability, humanity, and transparency. These factors are relevant and can be measured across the operating and functional

areas of the organisation. This includes areas such as customer experience, cybersecurity, culture, and supply chain operations. Organisations can take actions within these operating domains to help earn and maintain trust with their different stakeholders in practical and tangible ways.

C-suite executives should maintain and grow trust in their supply chain to help mitigate operational risk, improve resilience, protect the brand, make strategic decisions, and enable growth. When trust is impaired, the damage often cascades across the business ecosystem. At its core, customers may not trust they can purchase the brand’s products when they need them most, suppliers may lack confidence in the enterprise’s ability to scale demand, and board members and investors may lose trust in the C-suite and organisation’s ability to navigate an ever-more-complex environment. Alternatively, when trust is strong between an organisation and the stakeholders in its ecosystem, the organisation is typically much better positioned to collaborate with customers and vendors, share critical information, and capitalise on market opportunities in a concerted manner.

Executives at large multinationals believe their stakeholders trust their supply chain capability and performance, yet a recent Deloitte survey of US stakeholders suggests this confidence is significantly overstated. When we asked global executives to assess customer trust across the four factors, they overestimated the trust in their organisations’ supply chains by an average of 20%. Even when customers think of their leading suppliers, they still have lower trust in those suppliers than executives believe. These findings

suggest executives have potential trust blind spots in areas that customers care about—areas that may need to be explored and analysed.

Our analysis shows that stakeholder perceptions of reliability and transparency are paramount to organisational performance: these two factors demonstrate a statistically significant relationship with annual revenue growth and an organisation’s ability to maintain operational consistency through supply chain shocks.

For both trust factors, when stakeholder assessments move from lower scores (strongly disagree and disagree) to higher scores (agree and strongly agree), the likelihood that organisations experience growth rates of 15% or more increases 14% for reliability and 25% for transparency. Further, there is a similar relationship to resiliency as organisations are approximately 30% more likely to maintain operational consistency throughout supply chain disruptions when moving from lower to higher levels for both trust factors.

Investing in Technology to Improve Supply Chain Trust

Leading suppliers are investing in actions that help create a more reliable—and predictable— supply chain. This is especially true in the realms of technology and intelligence including the application of a digital thread (a single, seamless strand of data that stretches from development to commercialisation). Specifically, the leaders are 3.9 times more likely to strongly agree that their organisation has a fully deployed digital thread compared with the rest of the field. One study in 2021 found that more than 67% of companies had only begun to develop their digital thread in the two years prior. Therefore, it’s notable that more than a quarter of these leaders (27%) have already achieved this level of supply chain sophistication, while only 7% of the rest of the field have accomplished the same.

Closely related, the leaders are 3.8 times more likely to use advanced predictive algorithms to better forecast demand. Layering more accurate forecasting over the data provided by digital threads can help bolster a supplier’s ability to set expectations and plan for future needs and disruptions. For instance, aerospace manufacturer Boeing developed a digital thread to connect data across the entire product life cycle. By embedding sensors across factories, Boeing has a near-realtime view into inventory needs and operational inefficiencies. And to make this process more proactive and forward-looking, Boeing plans to use artificial intelligence (AI) to “mine for additional improvement over time”.

The benefits of this focus on technology are significant as they can help companies build reliability and resilience into their supply chains while requiring less costly investments in physical infrastructure (such as incremental inventory, incremental capacity, or incremental suppliers). For example, sensing and analytics tools can provide advance warning of impending issues and thus may

mitigate the need to diversify existing supply chains. Technology enables supply chains to become more agile as organisations are better able to sense demand and predict and adjust for potential issues that threaten inventory, service, compliance, or other critical needs.

A Trusted Supply Chain is a Valuable Business Asset

An intentional focus on trust can help supply chain leaders better understand stakeholders’ needs and prepare their organisations to develop and implement the initiatives that will generate the greatest impact and value over time.

Supply chain trust is an asset that you should manage just as you would manage any other critical organisational asset.

And while shareholder value and cost optimisation should almost always be supply chain priorities, too myopic of a view on these aspects may inadvertently erode trust—and eventually, the bottom line. Rather, it’s important to nurture trust across the wide array of stakeholders the supply chain ecosystem encompasses. Whether it be customers, employees, vendors, communities, investors, regulators, or others, each can play an important role in building a trusted supply chain. ●

This article is excerpted from “Is your supply chain trustworthy,” published by Deloitte

Turning Reverse Logistics into a Strategic Asset

Once viewed as a cost business one had to sit back and bear, returning goods from consumers to retailers or manufacturers has the potential to drive customer loyalty and environmental sustainability.

Supply Chain Insights investigates how organisations are leveraging advanced technologies to streamline processes, enhance visibility, and improve decision-making in reverse logistics.

In Australia, online consumers have the same refund rights as they do when buying from a physical shop. This means that, under the Australian Consumer Law, any item is covered by ‘consumer guarantees’, and has translated to online returns becoming a part of the everyday consumer’s shopping experience.

At first glance, reverse logistics may seem like a straightforward process - a customer returns an online purchase to the retailer, and the item moves back through the supply chain. But the rapid growth of e-commerce has magnified the challenges of managing product returns efficiently and profitably.

However, many retailers lack robust solutions for processing returns. Some simply send customers replacements rather than handling returns, while others discard returned items when reselling isn't cost-effective.

The rise of online shopping has increased return volumes, straining traditional retail reverse logistics processes. For high return rates product categories like apparel, efficiently reintegrating returns into the supply chain is crucial for profitability.

“Similar to forward logistics, returns is about ecosustainability and the four Rs – how to reduce, reuse, recycle and recover.”

RAGHAV SIBAL, MANAGING DIRECTOR ANZ, MANHATTAN ASSOCIATES

So, how is the supply chain industry grappling with returns in 2024? Raghav Sibal, Managing Director at Manhattan Associates, says that providing different options and flexibility to the consumer is an emerging trend this year.

To

understand and deal with which stage of the logistics process is causing problems with consumers, return authorisation notes and digital self-service provide retailers with a data foundation for predictive analytics and planning.

“In order to provide a better returns experience, retailers are digging deeper into why the returns are happening in the first place,” Raghav notes. “Organisations are looking at their overall omni-channel strategy to see what can be done in the sales process to overcome common issues for their customers.”

Kim Baudry, Global Market Development Director at Dematic says that retailers that manage their own returns are increasingly looking for ways to improve the efficiency of their returns process.

“Today, items must be inspected, repaired, priced, photographed and then put into available stock. Companies used to employ mostly manual processes for this, but automation is taking over and Warehouse Management Software (WMS) is being employed to help organisations manage inventory and processes used in returns,” she says.

James Sheerin, Associate Director in Supply Chain, TMX Transform explains that most customers now expect hassle-free returns.

“Businesses are increasingly investing in technology to efficiently track returns and optimise processes. There’s also an increasing focus on transparency, with customers wanting to know the status of their returns in real time,” James says.

“Retailers and 3PLs have accepted returns as a cost of doing business, but it is now one where they need to continually keep costs down, improve lead times, and enhance the customer experience.

By doing this, businesses can encourage repeat purchase customers and positive shared experiences.”

Royston Phua, Vertical Strategy Leader APAC Supply Chain at Zebra Technologies, says the components of forward logistics and reverse logistics are generally the same.

“Reverse logistics is now subject to the commercial offerings of the operator because of the benefits of cost versus time. Similar to forward logistics, returns is about eco-sustainability and the four Rs – how to reduce, reuse, recycle and recover,” he says.

AI and Data-based Decision Making

Advanced data analytics plays a crucial role in the broader challenge thrown up by reverse logistics. Collating insights from large volumes of returns data enables retailers to forecast return patterns, identify root causes of returns and optimise their reverse logistics processes accordingly.

Manhattan’s Raghav Sibal says the greatest challenge for retailers is acquiring the right data to make informed predictions and strategies.

“The volume of returns goes up and down at certain times of the year depending on economic conditions and seasonal factors,” he says. “You have to plan ahead and have enough flexibility designed into the warehouse to process spikes in returns. Another major challenge is the re-commerce aspect – organisations will always want to maximise profitability, so it’s a major challenge to quickly identify which stock is in the right condition to be put back on the shelf and resold.”

Raghav predicts investments in generative AI will be especially useful in customer care centres because of large language models’ ability to interpret conversations.

“AI and machine learning will play an increasingly important role in understanding the seasonality of demand cycles,” he says. “In the future, inventory optimisation algorithms, especially for retailers with higher volumes, will start to factor in the amount of product coming back in. At the moment, we plan our inventory levels based on what we sell, but if 20 per cent of that is returning, it is important to recognise some kind of pattern or predictability to that.”

The Role of Warehouse Automation

Warehouse automation has become synonymous with increased picking and packing throughput, helping organisations cope with more demand for online orders and consolidate orders into a single parcel out the door.

The latest automation and robotics is just as important in reverse logistics, with systems such as multishuttle and automated storage solutions creating storage buffers that seamlessly integrate with various stages of the returns process.

Such solutions serve as temporary holding areas for returned inventory while necessary processes like inspection, repair, or awaiting outbound order demand are underway. Dematic’s Kim Baudry elaborates, "At receiving and after inspection, product can be placed in an automated storage system and then pulled back out when someone is ready to repair the item. The item can then return to the automated storage until there is demand for that product in another order."

Automated storage buffers act as interconnected hubs, enabling the smooth flow of returned goods through various stages while minimising handling, delays, and potential errors. Advanced robotics and autonomous material handling technologies also have the potential to revolutionise reverse logistics workflows to the same degree.

"The rapid advancements in robotics and vision systems will play a large role in streamlining the returns process and augmenting the human element. Robotics with artificial intelligence and advanced vision systems making 'decisions' on a product disposition at receipt has the potential to greatly reduce the cost of returns."

“Robotics with artificial intelligence and advanced vision systems 'decisions'making on a product disposition at receipt has the potential to greatly reduce the cost of returns.”

KIM BAUDRY, GLOBAL MARKET DEVELOPMENT DIRECTOR, DEMATIC

“Returns is a part of this ecosystem, and digitisation of all these workflows is fundamental to giving the customer that valued experience.”

Moreover, warehouse automation software can empower companies to make data-driven decisions around reverse logistics processes. As Kim notes, "Software solutions can provide modules to enhance the returns process by providing customers with business rules and process steps for associates working in returns areas."

Building Customer Loyalty Through Visibility

Retailers and brands that can successfully leverage returns have a prime opportunity to bolster customer loyalty while concurrently optimising costs amid surges in return volumes.

Amazon's remarkable success underscores that returns are an indispensable facet of the delivery experience, and consumer expectations in this realm will only continue to escalate.

Royston Phua explains that “easy returns” are a significant driver of conversion and customer loyalty – optimised returns process can keep customers coming back and get returned merchandise back into inventory or the store floor quickly.

“When you consider supply chain, it is an interconnected ecosystem involving multiple nodes from planning, sourcing, manufacturing assembly, transportation, storage and fulfilment. Returns is a part of this ecosystem, and digitisation of all these workflows is fundamental to giving the customer that valued experience.”

In order to encourage consumer loyalty – visibility of products, and returns, is paramount.

The Sustainability Factor

The surge in online shopping returns is having a significant environmental impact. The additional transportation and logistics required to handle returned items contribute to increased carbon emissions and energy consumption, while many returned items end up in landfills. In the US alone, 2.2 million tonnes of online returns end up in landfill every year.

In the Australian market, businesses are beginning to implement recycling and reuse programs through their reverse logistics.

“By refurbishing and reselling returned products, or recycling components from returned products, they can minimise waste,” James Sheerin explains. “Recyclable material dunnage in their packaging can also prevent waste and reduce the reliance on single-use plastics by moving to more paper-based biodegradable products. It’s crucial to recognise that businesses can reduce their impact on the environment and their carbon footprint.”

Optimising transportation routes for returns can also lower C02 emissions by seeking reduced lead times, improved vehicle optimisation, and reduced fuel burn, which can be achieved through fleet electrification.

“You’re now seeing some large transport companies beginning to experiment with this and industrial buildings being developed or retrofitted to think about future charging and battery swapping in cases,” James says.

Mapping Out Reverse Logistics Improvement

In order to get a hold on returns, TMX’s James Sheerin says there are clear KPIs to set out.

“Businesses must consider, at a minimum –the return rate percentage, return turnaround time, percentage of return goods that are resold, transportation costs per return, customer satisfaction with the return process,” he says.

A comprehensive review process into how an

organisation’s reverse

logistics is operating is the only real way to identify areas for

improvement.

“This can help kick off a roadmap for short-term tactical change as well as long-term transformation. Changes may include investing in technology for tracking returns and optimising processes, focusing on transparency and communication with customers, and improving collaboration with partners and suppliers to streamline the entire reverse logistics chain,” James says.

All

experts were unanimous in the

importance of getting closer to the customer and listening to what they’re saying about your business, when it comes to returns user experience.

“They will give you the best insight into where you need to improve,” Royston concludes. ●

“Businesses

must consider, at a minimum –the return rate percentage, return turnaround time, percentage of return goods that are resold, transportation costs per return, customer satisfaction with the return process.”

JAMES SHEERIN, ASSOCIATE DIRECTOR IN SUPPLY CHAIN, TMX TRANSFORM

Supply Chain Professionals Must Ask Themselves – and Answer – How Much Does your Customer Matter to You?

In the wake of recent global disruptions such as COVID-19, the Red Sea attacks, and the Panama Canal drought, the critical importance of a resilient supply chain to uphold business operations has been magnified. These unforeseen events have underscored the need for businesses to adapt and enhance their supply chain strategies to meet evolving customer expectations.

In today's fast-paced world, customers demand immediacy and availability of products from anywhere on the globe. And the efficiency and effectiveness of your supply chain can make or break the overall customer experience.

Global enterprises like Amazon, Johnson & Johnson, and Apple have recognised this shift in consumer behavior and are now steering towards customer-centric supply chain solutions. They understand that a seamless supply chain not only impacts customer retention but also has a ripple effect on sales, operations, and revenue generation.

By aligning their supply chain with customer needs and preferences, these industry leaders have leveraged it as a key driver for business growth. They have embraced the influence of supply chain management on enhancing the overall customer experience, thus setting a new standard for operational excellence.

The Customer-Centric Supply Chain

The concept of a customer-centric supply chain goes beyond just meeting customer expectations. Research has shown that satisfied customers tend to spend significantly more than dissatisfied ones, highlighting the direct correlation between customer experience (CX) and business success.

It's not merely about having a robust sales and marketing strategy; it's about ensuring efficient, rapid, and transparent product delivery in a sustainable manner –all of which are deeply intertwined with endto-end supply chain operations.

The impact of the supply chain on CX is significant, as it directly influences pricing, product availability, and service quality.

This intrinsic relationship between CX and the supply chain can fundamentally transform how a business functions, how products are delivered, and ultimately, impact all facets of the business, including profitability.

A customer-centric supply chain model emphasises the importance of end-to-end visibility, data-driven adaptation to market dynamics, transparent customer interactions, and ultimately delivers a superior customer experience that drives business success.

What Does Your Supply Chain Include?

In today's global marketplace, a supply chain is not just a linear process but a complex network of interconnected components that work together to bring a product from concept to consumer. It includes sourcing materials, manufacturing, warehousing, transportation, and distribution. The efficiency and effectiveness of each of these stages impacts the success of the

entire supply chain.

Furthermore, with the rise of e-commerce and omni-channel retailing, customers now expect seamless and personalised experiences. This means that companies must not only focus on the physical aspects of their supply chain but also on the digital and customer-facing aspects. From order processing to delivery tracking, every touchpoint must be optimised to meet customer expectations and deliver a superior customer experience.

By understanding and managing every aspect of your supply chain, you can not only meet customer demands, but drive competitiveness. To do this, it is crucial to have full visibility and control over every link within your supply chain. This holistic approach will not only improve operational efficiency but also build trust and loyalty with your customers.

How Much Does Your Customer Matter to You?

The

connection a business has with their customer is imperative to its success.

Without a deep understanding and connection to the needs and wants of your customer base, your business will struggle to thrive in a competitive market.

From the initial stages of supply chain management to the final point of sale, every aspect of the customer experience should be carefully crafted to ensure satisfaction and loyalty. Ultimately, the success of a business hinges on its ability to prioritise and value its customers above all else. ● ●

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Maximising Supply Chain Competitiveness: A Comparative Analysis of Leading Automated Goods-to-Person (GTP) Order Fulfilment Solutions

WRITTEN BY DAVE LAMB, CONSULTING MANAGER –

ANZ, DEMATIC & PHILIP MAKOWSKI, DIRECTOR MARKETING –

APAC, DEMATIC

In today's global marketplace where customer expectations are constantly evolving, supply chain efficiency is paramount for businesses seeking to gain a competitive edge.

A key differentiator has become the ability to handle diverse products and deliver orders rapidly, accurately and at the lowest cost to various channels—including businesses, brick and mortar stores, and online customers. However, supply chains face numerous challenges: labour shortages, increasing costs, and land & real-estate constraints to combat transportation challenges and be close to customers who expect speedy delivery. With these fluctuating market dynamics, supply chains can become a competitive differentiator.

Customers demand products to be affordable, readily available, delivered quickly, with minimal errors and a seamless returns process. Additionally, the rise of ecommerce has further heightened the need for efficient order fulfilment processes. To remain competitive, businesses must navigate complexities such as SKU proliferation, seasonal fluctuations, and disruptions caused by environmental and geopolitical factors.

Automation technologies have emerged as valuable tools for addressing these challenges and

enhancing supply chain resilience and agility. By automating key processes such as order picking and fulfilment, businesses can improve efficiency, accuracy, and responsiveness.

Four leading automated goods-to-person (GTP) order fulfilment solutions — Dematic Multishuttle® GTP, AutoStore™, Shelf-toPerson Autonomous Mobile Robots (AMR) and Bin-topicker AMR — have emerged globally and in APAC as the leading solutions for supply chain optimisation.

So, which automation solution is the best fit for your operations?

Let’s look at the challenges supply chains currently face and compare the leading systems available today.

Enhancing

Order Fulfilment Efficiency with Goods-to-Person (GTP) Systems

Within warehouse and distribution centres, picking stands out as one of the most labour-intensive tasks, particularly when it comes to eaches or item picking. In manual operations, this process can consume a significant portion of staff time, with up to 65% of employees dedicated to picking tasks. However, much of this is inefficiently spent travelling between locations rather than the actual picking task.

To address this inefficiency, GTP systems emerged to optimise the picking process by eliminating unnecessary travel. In GTP systems, workers remain stationed at designated picking areas while items are automatically delivered to them from storage as needed, precisely sequenced for efficient fulfilment. These systems can accommodate various picking methods, including discrete or batch picking, and can be tailored to fulfil different types of orders, whether that’s store shelves or online purchases.

While GTP solutions like Multishuttle, AutoStore, Bin-to-Picker AMR and Shelf-to-Picker AMR operate on similar principles, they differ in their storage and pick station technologies, resulting in variations in operator pick rates, ergonomics, suitable products, storage density, throughput flexibility, security features, scalability, and maintenance requirements. Therefore, when implementing a GTP system, it's crucial to consider these factors alongside specific business and operational needs to design the most effective solution for the operation.

Bin-to-Picker AMR

The Bin-to-Picker AMR systems represent the cutting edge in Autonomous Mobile Robot (AMR) technology, designed for order picking tasks. These systems feature an AMR tower unit responsible for storing and retrieving totes from shelves, transferring them to an AMR tote mover, and ultimately delivering them to a designated pick station. Key features include storage height up to 10 metres high in shelves and single or double-deep configurations.

Pros:

• Quick system implementation, reducing setup times.

• Pick rates from 500 order lines per hour, per picker.

• Exceptional accuracy in order fulfilment.

• Flexibility to adjust throughput by adding or removing AMRs.

• Scalability, enabling easy expansion to accommodate growing storage and throughput demands.

• Maintenance-friendly design allows for easy rotation of AMRs for servicing.

• Robots have low energy requirements.

Cons:

• Storage height capped at 10 metres.

• Lower storage density than AutoStore.

• Pick rates may not match those of some Multishuttle GTP systems.

Shelf-to-Person AMR

Shelf-to-Person AMR systems are the original AMR order fulfilment solution, where AMRs bring a shelf of products to an operator for picking. The shelves can be used to store a variety of items, such as small units, large items in cartons, through to hanging garments.

With storage in shelves, Shelf-to-Person systems are limited to storage heights of less than 2.5 metres, with pick slots ranging from ankle height to upper slots requiring a small step ladder for access. If higher warehouse headroom utilisation is required to maximise capacity, companies typically utilise mezzanines for additional Shelf-to-Person modules (or other storage solutions if applicable to a particular storage and order profile).

As pickers pick items from shelves in this solution, Shelf-to-Person AMR systems tend to have the lowest pick rates of the four main GTP systems. With pickers having to find and select the correct storage slot in the shelves, there is also more room for error.

With these factors in mind, Shelf-to-Person AMR systems are typically applicable in small order fulfilment systems or where headroom utilisation, storage capacity, pick rates, and ergonomics are less of a consideration.

Pros:

• Potentially fastest implementation times.

• Lower cost for smaller systems.

Cons:

• Pick rates typically at 150 order lines/hour, the slowest of the four GTP solutions.

• Headroom utilisation.

• Mezzanines, if required, add considerable capital costs.

• Lower accuracy – can be addressed with product scan, which impedes pick rates.

• Picking ergonomics are not optimal.

AutoStore

AutoStore is an all-in-one storage buffer and order fulfilment solution. Offering ultra-high-density automation storage for small items, an AutoStore system can reduce space requirements down to 25% compared to conventional shelf storage. With a flexible, modular design, AutoStore systems can fit into existing facilities, around building columns and in compact spaces, and be readily expanded as required. The storage is in a cubic grid up to 24 bins high and it self-organises products according to throughput.

Pros:

• Highest storage density of any GTP solution.

• Ultra-high accuracy.

• Robots have low energy requirements.

• Easily expandable.

• Flexible system layout.

• Throughput and storage scalability independent of each other – can increase throughput by adding robots or increase storage by expanding the grid.

• High product security as storage locations accessible only by robots.

Cons:

• Flat SKU profiles can reduce robot efficiency if they spend more time ‘digging’ relative to ‘delivering’.

• May pose challenges to fire regulations in certain situations.

Multishuttle Goods-toPerson Systems

Multishuttle Goods-to-Person systems integrate advanced pick stations with Dematic Multishuttle systems, employing multiple shuttles within an aisle to store and retrieve products for seamless delivery to pickers. With exceptional throughput capabilities, this solution offers the highest pick rates among all GTP systems. With the patented Dematic InterAisle Transfer (iAT) technology for enhanced storage, retrieval, and picking flexibility, these systems offer optimal height utilisation of up to 20 metres and can store products in single, double, and triple-deep storage configurations.

Pros:

• Pick rates exceeding 600 order lines per hour per station, the highest among GTP solutions.

• Significant return on investment (ROI) despite higher system costs, thanks to unparalleled productivity gains and potentially lower building expenses.

• Dematic iAT technology enables product redirection to any pick station, reducing the need for connecting conveyors and resulting in a reduced building footprint.

• Maximised headroom utilisation.

Cons:

• Longer system implementation time compared to other GTP solutions.

Comparative Analysis

Each automation solution offers unique advantages and considerations, making it essential for businesses to carefully evaluate their options before making a decision. AMR Bin-to-Picker systems prioritise speed and flexibility, making them ideal for dynamic environments with fluctuating order volumes. AutoStore excels in maximising storage density and space optimisation, making it suitable for businesses with space constraints. Multishuttle systems prioritise throughput and scalability, making them ideal for high-volume fulfilment centres where productivity is of utmost importance, and with the capability to go high, they potentially provide the highest storage capacity in tall warehouses. Overall, automated GTP solutions offer tremendous potential for enhancing supply chain efficiency and agility. In an era defined by rapid change and intense competition, automation is not just a luxury but a necessity for businesses seeking to thrive in the modern marketplace. ●

Retail Reboot: How Tech Innovations Are Future-Proofing Australian Retailers

WRITTEN BY MICHAEL DYSON, VICE PRESIDENT, SALES & MARKETING – APAC, SOTI

Amid cost-of-living pressures, Australians are tightening their belts, leading to a significant shift in retail spending habits.

Data from the Australian Bureau of Statistics revealed that retail sales have remained stagnant since the beginning of the year, and even declined 0.4% in March. This trend stresses the growing reluctance of consumers to make non-essential purchases as household budgets tighten. In response, Australian retailers are turning to advanced technologies to improve customer experiences via enhanced inventory visibility, customer buying history and accurate delivery information.

As a result of this push within the retail sector to implement new technologies that enhance buyer experiences, the number of devices in global organisations has increased globally by 37% in the past year. Retailers today rely upon new apps, handheld point of sale (POS) devices, mobile printers, and barcode scanners to complete customer facing and supply chain and delivery tasks. However, not all Australian retailers have full visibility into how their devices are performing and what data they are collecting, nor can they manage these devices remotely to ensure effective usage.

How can retailers better manage their devices to ensure that they are helping to optimise work processes and support a positive customer experience?

Meeting the Demands of Tech-Savvy Shoppers

The reality for Australian retailers is that consumers are accustomed to leveraging technology to improve their daily lives and expect the same experience when shopping. In fact, according to a new industry research report from SOTI, Techspectations: Consumer Demand for Digital Transformation in Retail, 30% of Australian shoppers have considered shopping with a different retailer to receive a better in-store tech experience.

Deploying mobile devices throughout a retail environment in isolation won’t necessarily improve the customer experience. Rather, retailers must ensure they are supporting technology with the right software, management and processes.

While it is evident that retailers have increased their investments in technology, the research shows that they do not have the visibility of where the technology is falling short.

The key to successfully deploying technology lies not just in its implementation but in its effective management.

To better understand what steps retailers must take to meet the in-store expectations of consumers in 2024, it is important to start by identifying the gaps.

Maximising Efficiency with Enhanced Visibility and Support

Whether they are located in the warehouse or on the shop floor, self-serve kiosks, scanners, smart shopping carts and mPOS devices only benefit customers when they work. When they go down –and no one on site can fix the issue – it can lead to complete operational disruption and a poor customer experience. One of the top challenges for retailers is gaining and maintaining visibility of their fleet of devices.

Trek Bicycle Corporation (Trek) is a leading global bicycle product manufacturer and distributor brand with operations in over 80 countries. Trek is one of many retailers that experienced challenges with in-store device management and its ability to support these devices globally. Struggling with device security, device performance insights and troubleshooting device issues, Trek experienced hours of unnecessary downtime impacting productivity and revenue.

“We have more than 300 devices spread across our eight facilities and at some of these facilities they don’t speak English. So, troubleshooting technology issues internally for our manufacturing warehouses was a huge challenge for us,” said Tom Spoke, Director of Global IT at Trek Bicycle Corporation. “Simply knowing where all our devices are, their status, health, things like that and being able to perform troubleshooting remotely was never something we had before.”

Trek has seen major improvements in its operational and worker productivity after leveraging SOTI MobiControl and SOTI XSight, all part of the SOTI ONE Platform. Trek now has improved visibility into its device fleet, enabling the organization to monitor how, when and where they are being used. With SOTI XSight, the IT team can quickly diagnose, support and troubleshoot issues remotely. This ensures its distribution facilities can ship same-day orders, so stores have available stock for consumers.

Bridging the Supply-Demand Divide

The retail supply chain stretches from the warehouse to the customer’s front door – and all points in between, including: the delivery truck, the distribution centre and the store shelf. The technology required to manage these different systems needs to “talk” to each other to ensure access to the latest data regarding inventory availability or delivery times. Total real-time visibility of business mobility is essential for retailers, with 45% of global consumers wanting same-day in-store pickup for online orders and a further 74% expect to always know where their order is within the delivery process. However, with sophisticated personalisation and seamless processes, online setting high expectations for shoppers, in-store technologies are struggling to level up. To address this, retailers must invest in AIdriven solutions and device management to provide consistent and convenient shopping experiences in both physical stores and online.

One retailer that has successfully navigated modern inventory challenges is Cheap as Chips. The discount variety store chain, with 51 locations across regional and suburban Australia, modernised its retail operations by leveraging SOTI MobiControl to manage its fleet of mobile devices. This decision came as a solution to the logistical hurdles posed by its dispersed workforce and the need for efficient inventory management and customer service activities.

“Our store associates rely on mobile devices to scan barcodes, manage inventory across different locations and process transactions from anywhere in the store, without the need for a fixed point-of-sale (POS) system. However, due to the remote locations of our retail stores, managing and maintaining devices is not straightforward,” explained Daniel Whittle, Head of Technology at Cheap as Chips.

Through the implementation of SOTI MobiControl, Cheap as Chips addressed the challenge of ensuring all employees have real-time access to the same information, no matter their location, thus significantly reducing the risk of costly device downtime and optimising customer service and inventory management tasks.

The Retail Technology Imperative

To meet the needs and expectations of modern consumers in 2024 and beyond, retailers must focus on prioritising the management of their critical devices. They must invest in solutions that best manage and maintain their technologies to a point where they operate at full, seamless potential.

In today's environment, retailers should optimise their existing technology investments by assessing the devices already present in their supply chain, such as printers, scanners and tablets.

It is a good idea to collaborate with partners who can seamlessly integrate and manage these assets to avoid fragmented solutions and enhance remote operational efficiency. This proactive approach is crucial for developing a future-ready supply chain that ensures streamlined operations across both online and physical channels. ●

For more information on SOTI’s report, Techspectations: Consumer Demand for Digital Transformation in Retail, please click here.

From Disruption to Adaptation: The Need to Evolve Your Supply Chain Thinking Today

WRITTEN BY GLEN LAWSON, ACCOUNT DIRECTORTRANSPORTATION, LOGISTICS & SUPPLY CHAIN, APPIAN

The past few years have exposed the fragility and complexity of global supply chains.

With disruptions ranging from pandemics to geopolitical tensions, the business landscape has been irrevocably changed.

This has compelled Australian organisations to reevaluate their supply chain strategies and incorporate lessons from industry leaders to help build more resilient futures.

In our quest to understand these shifts, the team at Appian (a software company that automates business processes) recently consulted with leading experts from Tata Consultancy Services, KPMG, Deloitte, and Spark Equation, who shared their insights on adaptation strategies, the role of technology, and the emerging trends in supply chain management.

The Art of Adaptation

Adaptation is crucial for supply chain resilience. It enables companies to respond effectively to disruptions by adjusting their operations, sourcing strategies, and logistics in a responsive and efficient way. In transport and logistics settings, adaptive processes can lead to significant cost savings by optimising routes, reducing waste, improving supplier negotiations, and utilising technology to automate and streamline operations.

Deepak Mavatoor, Managing Partner from Tata Consultancy Services highlights the importance of proactive scenario planning to support adaptive supply chain processes:

"Almost no companies have been left untouched (by the previous few years). But the concept of resilience shouldn’t assume that you won’t fail, but rather that you should be able to get back up fast.

When you think from that angle, you notice the best companies have focused on scenario planning.

In our personal lives, we think about contingencies— what happens when the kids aren’t on time, or your alarm clock doesn’t go off? In the professional world, we always plan for an ideal scenario. It’s hard to fathom when wars break out, but we must consider them."

“Some of the best companies have run more “what if” scenarios so they don’t fall into the trap of thinking “this worked for the last eight years, so I’ll continue to do this.” They have the tools, processes, systems, and culture to handle these what-ifs. Some companies do sales and operations (S&OP) planning far more frequently—sometimes two or three times a week—which shifts the culture to be more scenario-planning-oriented.”

Peter Liddell, Partner at KPMG adds that organisations who focus on inventory management have a better understanding of their supply chain risks, which allows them to adapt to changing operating environments:

"If you peel the onion down a layer, you see that the companies that did well (through recent disruptions like the pandemic) likely had a lot of safety stock or inventory stockpiles. Many also turned to premium freight for faster deliveries, however these strategies are not sustainable. There was a lot of luck for many of them, to be frank. Today, companies have started to adapt by right-sizing their supply chains. Many are looking at different sourcing methods and revisiting where they do their manufacturing. For example, they may look at suppliers with really long, in-transit times that they’ve always done business with and try to find a closer supplier in order to reduce lead time. It allows them to be much more agile, often waiting only 3 – 4 weeks instead of 12 for critical supplies.”

The Role of Automation in the Supply Chain Sector

Automation plays a pivotal role in enhancing the efficiency and resilience of supply chains through streamlining processes, reducing manual errors, and expediting decision-making. By integrating automated systems, companies can improve the adaptability of supply chains by allowing organisations to adjust more fluidly to changes in market conditions or demand spikes without a proportional increase in labour costs.

Automation tools such as robotics in warehousing, AIdriven demand forecasting, and autonomous transport technologies significantly decrease operational bottlenecks and improve accuracy in inventory management and logistics.

For instance, automated sorting systems in warehouses can increase order fulfillment speeds and accuracy, while AI algorithms can predict fluctuations in demand to optimise stock levels and avoid overproduction or shortages.

Joaquim Duarte Oliveira from Deloitte highlights the organisations need to investigate digital tools that bolster agility:

"Current technology is better able to support agile and resilient supply chain processes. Many technologies, including AI, machine learning, IoT, cloud computing, and data availability, are maturing and offer more capabilities at a lower cost than before. For instance, scenario planning, which requires handling an enormous amount of data, used to be an issue.

The

expansion of computing power and flexible visualisation now enables both exception management

and near realtime scenario planning.

In the near future, the vast majority of activities in supply chain planning will be handled by digital solutions, where predictability, scenario planning, visibility, and agility are the key elements, leveraged through decision intelligence and automation."

Mavatoor goes further, arguing the benefits of a technology-first model in the supply chain sector:

"There’s a lot we do that doesn’t require a lot of discretion like basic planning or forecasting. You can use automation to collect the data, refine the data, and come up with intelligence so a human can make the final decision. At TCS, we have a concept called the 'Machine-first Delivery Model.' Only if a machine cannot do the work do we send the work to a human."

“Today, companies have started to adapt by rightsizing their supply chains. Many are looking at different sourcing methods and revisiting where they do their manufacturing.”

“Almost no companies have been left untouched (by the previous few years). But the concept of resilience shouldn’t assume that you won’t fail, but rather that you should be able to get back up fast.”

PETER LIDDELL, PARTNER, KPMG

“Many technologies, including AI, machine learning, IoT, cloud computing, and data availability, are maturing and offer more capabilities at a lower cost than before.”

“The public, for example, may want to move to electric vehicles, but it’s a complex move—you can’t just switch them on overnight.”

VLAD FILIPPOV, FOUNDER AND CEO, SPARK EQUATION

JOAQUIM DUARTE OLIVEIRA, DELOITTE

Navigating Supply Chain Complexity

A primary reason that supply chains break down is due to the nature of how complex they are.

Supply chains are intricate networks involving multiple stages of production, handling, and distribution, each with its own set of challenges.

Vlad Filippov, Founder and CEO, Spark Equation says that more understanding at a public level around the way supply chains work could help the industry.

“Logistics is one of the most complex disciplines. I wish the general public knew how many pieces were involved, so they knew that if something happens in one given part of the supply chain, it’ll affect everything else. The public, for example, may want to move to electric vehicles, but it’s a complex move—you can’t just switch them on overnight.”

Filippov goes further to highlight a pressing concern around skilled labour in the transport field and how that could impact supply chains in the future:

“We also need to talk about how we’ll solve the shortage of truck drivers. How do you solve that problem? Autonomous vehicles? Training and incentives? If I’m not mistaken, many truckers today are above 40 or 50. The industry is not getting younger, and they’ll be exiting the workforce.”

Oliveira echoes this, adding a critical viewpoint on the human aspect of technology implementation:

"Among organisations, talent is already hard to find and attract. While technology has advanced, supply chain teams need talented people with skills fundamentally different from those expected of planners in the past. New hires must be able to think on a strategic and tactical level about scenarios and risks, must have analytical as well as communication skills, and be heavily market-oriented. With skills like these, they might just as well work in marketing or R&D."

The Need for Supply Chain Orchestration

Supply chain orchestration can help organisations navigate disruptive forces and respond faster to volatile international supply and demand. A wide range of complex but repeatable tasks require large amounts of data at all stages along the supply chain. This is where an enterprise-grade automation platform can help with capabilities such as data fabric to help unify data across multiple sources quickly, process automation to connect people, AI, bots and business logic, and process mining tools to identify bottlenecks and root cause issues using real world data.

The integration of new technologies and automated processes will enable Australian organisations to better manage global supply and demand fluctuations, enhance operational efficiency and transparency, and become more adaptable and resilient overall. ●

For more information on how your organisation can navigate supply chain disruptions and adapt for the future, please click here.

The Path Forward: Tackling Land Scarcity and Escalating Energy Costs Across Multiple Australian Industries

WRITTEN BY

DAVID LAMB,

MANAGER,

A number of Australia's industries, spanning from food and beverage to retail, wholesalers, and spare parts, all face a dual challenge: land scarcity due to urbanisation and the relentless surge in energy expenses.

While these issues pose large barriers for these industries to overcome, they also create opportunities for innovation, enhanced efficiency, and ongoing sustainable practices. Against this backdrop, there is a need to explore strategic responses and new approaches to navigate both current challenges and future uncertainties.

Land Shortages: Maximising Efficiency in a Crowded Landscape

The phenomenon of urban sprawl, particularly along Australia’s eastern seaboard, has significantly impacted food and beverage, retail, wholesaler, and spare parts supply chains. With more than half of Australia’s population residing in just three cities on the eastern coast along with a significant spike in ecommerce, the demand for land in these urban centres has soared, creating severe land scarcity. As a comparison, in the UK or US this proportion of the population would instead be spread across approximately 9 and 27 cities respectively.

The situation is most acute in Sydney, where a CBRE report found that there was only a 0.2% vacancy rate for buildings of 5,000 square metres or more during the first six months of last year. This is the lowest rate recorded globally.

CBRE said rents in Sydney are highest at $215 per square metres, compared to $119 per square metre in Melbourne, where the vacancy rate was also higher.

The congestion in Australia has not only inflated the cost of available land but has also necessitated a rethink in how suppliers manage their logistics and distribution networks to service increasing demands of their customers.

Innovative Solutions for Urban Congestion Food and Beverage

When specifically focusing on grocery retailers, it becomes apparent that a high-density population combined with high real-estate costs has led to a transition to smaller footprint metro stores. This is so retailers can stay closer to their customers and better service their needs of convenience in our major cities.

The shift towards these smaller stores, with more distributed networks, requires strategically located facilities and the need of getting the most out of the limited land available. By co-locating and integrating warehouses with existing manufacturing sites, the food and beverage industry aims to streamline operations, reduce transportation needs, and ultimately mitigate the impacts of urban congestion.

When considering their logistics footprint, food and beverage suppliers must implement optimised solutions that not only enhance economies of scale but also maintain agility in response to fluctuating market demands, without sacrificing performance. It's imperative they leverage their existing land footprints to achieve increased storage capacity, heightened throughput, improved facility velocity and greater overall value, ensuring every square inch contributes to operational efficiency and effectiveness.

One leading solution used for this logistics requirement is an Automated Storage and Retrieval System (AS/RS), which offers a way to significantly enhance storage efficiency within the limited available space. Combined with the capability of automatically loading and unloading trucks, this solution provides a fast, accurate and cost-efficient storage and delivery solution.

Because automated warehouses do not need to accommodate manual access, they can be a high bay configuration that takes up less cubic space for the same amount of storage — typically 25% to 35% more storage density over traditional warehouses, and with heights typically 30 -35 m (and up to 45 m) then can deliver 200% increased storage in the same land footprint. An AS/RS provides the high-density, high-capacity storage for pallets in a fully automated solution and at a high speed, which also helps to reduce reliance on labour during a time of low worker availability. With an AS/RS solution, stock cannot be lost or forgotten, as the system provides complete and real-time visibility of overall inventory.

The Diageo AS/RS System in Huntingwood exemplifies this approach, integrating high-density warehousing right next to its Sydney manufacturing centre. This strategic move not only improves storage efficiency but also reduces the logistics footprint by eliminating the need for multiple storage locations, minimising truck movements and manual operational touches between facilities.

Retail, Wholesalers and Spare

Parts

With the rise of ecommerce, consumers have grown accustomed to expedited shipping options, and many now expect their orders to arrive rapidly. As a result, retailers are increasingly using speed as a competitive differentiator. In markets like Korea, companies such as Coupang have set the bar high by offering lightningfast 2-hour deliveries. This trend not only reflects the surging expectations of consumers but also serves as a glimpse into the future of retail logistics. As competition intensifies and consumer expectations continue to soar, the ability to deliver orders quickly, accurately, and reliably is vital for retailers seeking to stay ahead in the ever-evolving retail landscape.

Today, the strategic positioning of distribution centres close to stores and consumers has become a critical factor for success. This facilitates faster order fulfilment, streamlines transport and logistics, and reduces the need for extensive backroom store operations.

For wholesalers and spare parts operations, proximity to their business-to-business (B2B) customers is necessary to meet the demands of a quick turnaround market. Whether it's mechanics repairing vehicles, mining operations maintaining heavy machinery, or builders overseeing construction projects, the ability to access parts quickly is essential for ensuring uninterrupted operations. By locating distribution centres near their B2B customers, wholesalers can streamline their supply chains, reduce delivery times, and provide the level of service necessary to support their clients in meeting their own deadlines and commitments.

Retailers, as well as wholesalers and spare parts operations, are also further optimising their supply chain footprint, overcoming current labour availability challenges and ensuring that products reach their intended destinations quickly and efficiently, through automation. Solutions such as the Dematic Goodsto-Person (GTP) Multishuttle system, AutoStore™ systems, and Autonomous Mobile Robot (AMR) picking systems are capable of enabling high capacity eaches picking, which is ideal for retail, wholesale and spare parts distribution centres.

The choice between Dematic GTP-Multishuttle., AutoStore or AMR picking solutions depends on various factors, such as a company's business model, supply chain structure order profiles, products handled and constraints such as building footprint and height. For instance, businesses with very high order volumes may benefit from the fast throughput capabilities of GTP-Multishuttle solutions. Companies operating with limited warehouse space may find AutoStore's high storage density more suitable for their needs. While companies with limited headroom and high order volumes may benefit most from an AMR Binto-Picker, and those with lower order volumes most suited to an AMR Shelf-to-Person solution.

Rising Energy Costs: Embracing Efficiency and Sustainability

Another pressing challenge for supply chain operations across industries is the rise in energy costs. In recent years, wholesale energy prices have risen at record rates. The default market offers for 2023-24 determined by the Australian Energy Regulator (AER), increased by approximately 50%.

While the rate of increase for the current year isn’t as high as the peak that was seen in 2022, predictions for ongoing future rises in retail energy prices, coupled with the high energy consumption characteristic of these sectors, have highlighted the urgent need for more energy-efficient warehousing solutions.

This is particularly pertinent for cold chain logistics where energy efficiencies are lost due to footprint and ineffective use of the available cube.

The Path to Energy Efficiency

High bay warehouses in cold chain logistics environments represent a significant advancement towards addressing energy inefficiency. By optimising the use of cube and minimising overall footprint, these facilities can reduce energy consumption by more than 50% compared to traditional, larger footprint warehouses. Energy efficiency is achieved through maximising storage density in the cube, minimising open spaces, reducing energy lost through the floor and ceiling and deploying a lights out operation, with smart automation that can optimise energy consumption through on/off operation and electrical energy regeneration capability.

The move towards more energy-efficient warehousing solutions is not just about cost savings; it's also about positioning the Australian food and beverage industry as a leader in sustainable practices. With consumers increasingly valuing eco-friendly supply chains, the focus on energy efficiency serves as a key differentiator in the market, enhancing brand reputation and customer loyalty.

Leveraging Innovation and Efficiency to Overcome Challenges

As the food and beverage, retail, wholesaler and spare parts industries look to the future, they face a landscape marked by rapid change and increasing complexity. The challenges of land shortages and rising energy costs necessitate a strategic approach that balances immediate needs with long-term sustainability.

The pivot of these industries towards innovative storage solutions and energy-efficient practices highlights a commitment to overcoming these challenges through adaptability and foresight. By optimising the logistics footprint and embracing sustainable operations, the sector is not just responding to current challenges but is also preparing for the future. ●

Why Australian Retailers Need to Prepare for the Social Commerce Boom

WRITTEN BY RAGHAV SIBAL, MANAGING DIRECTOR, ANZ, AT MANHATTAN ASSOCIATES

Social commerce— purchases made directly on social networks—is taking off and is expected to grow three times faster than traditional e-commerce, reaching $1.2 trillion by 2025.

In Australia, this trend is gaining significant traction, driven by the widespread adoption of social media platforms, and changing consumer behaviours.

As retailers navigate this evolving landscape, the supply chain plays a crucial role in ensuring seamless operations and delivering a superior customer experience.

Developing sales through social networks via product placements or popular influencers is nothing new. However, selling directly on social networks is a more recent phenomenon. According to a report by We Are Social Australia, as of 2023, Australians spend an average of over two and a half hours per day on social media, highlighting the growing influence of these platforms in daily life. Additionally, nearly one in three internet users visit social networks to look for information about brands and products.

The Role of Supply Chains

The rise of social commerce presents unique challenges and opportunities for supply chain management. Traditional supply chain models, designed for brick-and-mortar or standard e-commerce operations, need to adapt to the dynamic and fast-paced nature of social commerce.

Inventory management and forecasting are crucial aspects in this new landscape. Social commerce can lead to unpredictable demand patterns, driven by viral trends and influencer endorsements. Retailers need robust inventory management systems that can quickly respond to spikes in demand. Real-time data analytics and AI-powered forecasting tools can help retailers predict demand more accurately and adjust inventory levels accordingly.

Speed and flexibility in fulfilment are also paramount. Consumers expect fast and reliable delivery, especially when shopping through social media.

Retailers must optimise their fulfilment processes to meet these expectations. This may involve leveraging a network of local fulfilment centres, utilising same-day delivery services, and employing advanced logistics solutions. Partnering with thirdparty logistics providers (3PLs) can also enhance flexibility and scalability.

Seamless integration with social platforms is another critical factor. To capitalise on the potential of social commerce, retailers need seamless integration between their e-commerce systems and social media platforms. This integration ensures that product information, inventory levels, and pricing are consistent across all channels. Moreover, it enables efficient order processing and tracking, enhancing the overall customer experience.

Enhancing the Customer Experience

In social commerce, retailers must focus on delivering an exceptional post-purchase experience, including transparent communication, reliable shipping, and hassle-free returns. Implementing customer service chatbots and AI-driven support can improve response times and resolve issues promptly.

Leveraging data and analytics is essential in this context. Social commerce generates vast amounts of data, offering valuable insights into consumer preferences, behaviour, and trends. Retailers

can use this data to optimise their supply chain operations. By analysing social media interactions, sales data, and customer feedback, retailers can identify popular products, anticipate demand shifts, and tailor their supply chain strategies accordingly.

Impact on Supply Chains

Social commerce represents a new direct-toconsumer sales channel for retailers, one that should not be overlooked in terms of fulfilment strategies and the shopping experiences it provides customers. The direct engagement with customers can create logistical challenges for retailers. Retailers must ship single units to numerous individual locations while maintaining the consumer promise of timely delivery.

The direct-to-consumer approach of social commerce demands greater agility and flexibility in customer experience and service. Retailers must respond quickly to customer queries, comments, and problems related to orders, deliveries, and product returns. This must be managed seamlessly to provide a personalised experience to each customer, tailored to their preferred communication medium—whether that’s email, phone, social media, or chatbot.

Order management must also adapt, drawing on the advantages of unified warehouse, transportation, and point-of-sale networks. Offering customers various delivery options—from home delivery to click & collect, buy online collect in-store, curbside pickup, or delivery to a pickup point—needs to reflect the broad range of choices consumers now expect.

What’s Next for Social Commerce?

As social commerce continues to grow in Australia, retailers must prioritise supply chain innovation to stay competitive.

The integration of advanced technologies such as AI, machine learning, and blockchain can further enhance supply chain visibility, efficiency, and security.

Additionally, fostering strong partnerships with logistics providers and leveraging data-driven insights will be crucial in meeting the evolving demands of social commerce.

As the lines between social media and e-commerce continue to blur, a robust and agile supply chain will be a key differentiator in the competitive retail landscape. ●

For more information, please visit www.manh.com/en-au

Return Abuse Explained: Why it Happens and How to Prevent it

WRITTEN BY JOHN-DAVID KLAUSNER, VICE PRESIDENT OF BUSINESS DEVELOPMENT & STRATEGIC ALLIANCES, LOOP

Think your brand is immune to return fraud and abuse?

New data on shady customer practices says otherwise.

From returning alreadyworn items to claiming a perfectly fine item is defective, return abuse and fraud is a major issue for retailers around the globe. These behaviours not only harm retailers’ bottom line, but also increase costs for all customers.

Australian retailers aren’t excluded from the growing problem — in fact, 4 out of 10 Australian consumers admit they have (or know someone who has) engaged in at least one abusive, fraudulent, or other unfavourable return-related behaviour in the past 12 months.

To better understand the problem, Loop surveyed 1,000 Australian online shoppers about their returnsrelated behaviours. Find out how you can minimise instances of return abuse while providing customers an exceptional post-purchase experience.

What

is return policy abuse and fraud?

Consumers who engage in return policy abuse, fraud, and other unfavourable return-related behaviours exploit loopholes and leniencies in the return process. From ethical grey areas to criminal territory, these actions exist across a broad spectrum.

Unfavourable consumer return-related behaviours do not typically violate return policies, but they can still harm a retailer’s bottom line. This category includes behaviours like:

• Ordering multiple items to try, knowing most will be returned — otherwise known as bracketing

• Attempting to return an item ineligible for return (e.g., past the specified return date)

Return abuse refers to actions that intentionally push the limits of return policies’ intent, which most merchants view as a breach of their policies. Return abuse includes behaviours like:

• Wardrobing, or wearing or using an item with the intention of returning it

• Claiming that a functional item is defective to receive a refund or discount (i.e., quality disputes)

Return fraud involves deliberate deception and often violates laws. This category of misconduct includes behaviours like:

• Chargeback fraud or purchasing items with a stolen or borrowed credit card and attempting to have a refund processed to another card

• Empty box fraud or returning an empty box or less expensive item than the original item purchased.

Though the ethical shades may vary from small-scale policy bends to outright fraud, the sheer number of consumers who have (or know someone who has) engaged in these behaviours poses a significant challenge for Australian retailers.

Drivers of returns abuse and fraud

So, why do consumers engage in various types of return-related behaviours? Here’s what we uncovered:

• Finding the perfect fit: When asked which returns-related behaviours they have engaged in, we found that online shoppers are most likely to engage in bracketing (79% have done so at least once). But when we asked why they engage in this type of behaviour, 62% said they needed to determine the size/fit of the item — pointing to non-malicious intentions and perhaps room for improvement for retailers’ product size guides.

• One-wear only: Around a third (32%) of online shoppers engaged in return abuse, fraud, and other unfavourable return-related behaviours because they planned to use an item for a specific event, then return it.

• Spender’s remorse: Trailing closely behind, another 31% of online shoppers in Australia blame their return policy abuse behaviours on their desire to keep an item but needing the money they’d already spent.

The vast majority of Australian consumers (96%) agree that retailers who offer flexible and extensive return policies care more about them as a consumer. So, while a seamless returns process remains a critical part of the shopping experience, how can retailers ensure a quality return experience while protecting their brand?

3 ways retailers can prevent return abuse and fraud

The solution to return abuse and fraud isn’t onesize-fits-all. With various factors driving fraudulent and unfavourable return-related behaviours, the solution can be complicated. But by taking a datadriven approach to understanding your shoppers’ behaviours, you can better protect your bottom line while ensuring convenience for your customers.

1. Understand current levels of fraud and abuse to identify low-hanging fruit. The first step in minimising return abuse and fraud? Assess how often these behaviours are occurring so you can pinpoint areas to improve the post-purchase experience.

For example, consider the 62% of Australian consumers that engage in unfavourable return-related activities to determine the size or fit of an item. Without the ability to use or try on an item in-store, online shoppers have to rely on customer reviews and the retailer’s product descriptions to determine sizing. With this in mind, consider asking consumers for feedback on a product’s fit during the return process so you can adjust product descriptions accordingly.

Given the desire of many Australian retailers to expand to the U.S. market, it’s also important to ensure accuracy and clarity in your size chart conversions for international markets.

Another option is to incentivise customers to leave detailed reviews of their purchases that help guide other shoppers’ sizing decisions.

2. Lay down the (returns) law. The majority of shoppers either always (39%) or sometimes (53%) review a retailer’s return policy before making a purchase online. One in five shoppers also say that a lack of clear guidelines about what constitutes return policy abuse would make them more likely to engage in these behaviours. Knowing this, it makes sense to be upfront with your customers about what is — and isn’t — acceptable in terms of return-related behaviours.

Clearly outline your brand’s return policies and best practices, making them available to customers on your website and throughout the purchase journey. It’s also smart to appeal to shoppers’ emotions and moral compass. After all, 25% of online shoppers are less likely to engage in return abuse and fraud if they knew it had a negative environmental impact.

3. Leverage data to provide personalised experiences. Given that 62% of online shoppers believe engaging in return fraud and abuse is never acceptable (and 60% have not engaged in these behaviours at all in the past year), you have to treat every customer as a unique case. One way to do this is by adjusting the post-purchase experience based on past shopper behaviour.

For example, you can segment shoppers based on their previous behaviours by identifying return fraud perpetrators. If a customer from the perpetrator segment attempts another return, you can require them to speak with a customer service representative before they can make the return to prevent misconduct. Meanwhile, shoppers who haven’t been flagged for previous unfavourable behaviours can complete their returns without added friction.

Balancing Prevention and Customer Satisfaction

Return abuse and fraud present significant challenges for retailers, but with a proactive, data-driven approach, businesses can mitigate these issues while still providing a positive customer experience.

By understanding the motivations behind returnrelated behaviours, establishing clear return policies, and leveraging data for personalised customer interactions, retailers can protect their bottom line and foster a trustworthy shopping environment. ●

To download Loop’s shopper returns report, click here.

Look out for the next issue

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Look out for the next edition of Supply Chain Insights, where we take a detailed look at the issue of “Getting Ready for the Peak Season: Strategies for Managing Supply Chain Pressure”.

As the lead-up to Christmas and major sales events like Black Friday approach, supply chains and workers face immense pressure. This edition will explore how supply chain professionals can best prepare for the busy retail sales cycle. We will delve into strategies for enhancing efficiency, ensuring timely deliveries, and managing workforce

demands during these high-stress times. Additionally, we’ll examine the role of technology in predicting demand surges, optimising inventory, and maintaining smooth operations. Stay tuned to discover actionable insights that can help build resilience and adaptability in your supply chain to manage the busiest time of the year.

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