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SUPPLY CHAIN & LOGISTICS THE QUEST FOR SUPPLY CHAIN VISIBILITY The Covid-19 pandemic has exposed significant cracks in the ability of Australian retailers to mitigate supply chain imbalances, among other retail challenges. ABy Accenture Managing Director, Supply Chain & Operations Carter McNabb. clear realisation following the initial shock of the pandemic has been that many businesses don’t possess the capability to execute effective scenario planning. In particular, the supply chain for retailers has become much more fragmented over the years in the wake of increased sales channels, products and fulfilment options for customers. While supply chains by nature have always operated with a level of fragmentation, the pressure over time to increase gross margins while keeping costs low has forced businesses offshore, effectively lengthening and complicating things even further. Supply chains are set up to support specific logistical needs. However, network-optimisation exercises and reviews aren’t carried out frequently enough to keep up with demand, and the pandemic has further highlighted weaknesses in a fragmented system when demand fluctuates wildly. When the pandemic hit, these issues and a lack of supply chain visibility made it difficult for businesses to react strategically, and this was where we saw businesses struggle the most. In the face of uncertainty, nurturing long-term resilience within supply chains has now become vital for survival. Research has suggested that, globally, the concept of resiliency hasn’t kept pace with the continually rising complexity of supply chains, and control over supply chain disruptions remains a challenge. The challenges aren’t uniform. Industry has traditionally prioritised efficiency over resiliency, but there’s a new and urgent need to strike a balance. In combination, the question is raised: how can retailers build more resilient supply chains? One solution for achieving this is demand planning for improved visibility. Demand profiles change very quickly. The ability to plan for them is still a relatively immature capability in Australia. Forecasting is completed based on historical data but often isn’t fit for purpose in the face of large-scale changes in demand dynamics. With changes and complexities in tow, there are opportunities for the industry to develop further visibility and resilience across the board. This could include dynamically rerouting the network, repositioning the inventory or even repurposing facilities to meet new needs. These can often fall into blind spots when businesses are solely focused on keeping up with customer demands. To successfully optimise supply chains, retailers also require a broad set of skills across multiple disciplines from technical skills to data analysis. This adds another layer of intricacy to how well supply chains can be managed, and showcases the significance of GRA’s move to join forces with Accenture. GRA specialises in end-to-end supply chain and logistics strategies and operations. This recent acquisition will continue to supercharge the consultancy’s growing capabilities across Australia and New Zealand, while strengthening Accenture’s commitment to optimising supply chain operations through additional data, digital and cloud technologies. Until the pandemic era, profitability and new growth stayed at the top of retailers’ agenda. But when supply chains were thrown into chaos, the lack of real-time visibility became the culprits of blindsiding businesses, impairing decision making and breaking supply chains. This only makes for a compelling argument for new supply chain programs that prioritise resilience and visibility – the most important things needed to mitigate risks and withstand future disruptions. About Carter McNabb Carter McNabb is the Managing Director of Supply Chain & Operations at Accenture. Carter was a founding Partner of GRA. He advises CEOs of some of Australia’s top companies and speaks regularly to this audience. For the past 20 years, he has helped organisations in North America, Asia and Australia deliver rapid and sustained inventory reductions, service level improvements and supply chain cost reductions through the practical application of leading supply chain processes, techniques and systems. About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security, offering services in strategy and consulting, interactive, technology and operations. We deliver on the promise of technology and human ingenuity, and embrace the power of change to create value for our clients, people, shareholders, partners and communities. 68 RETAIL WORLD JUN, 2021