Supply Chain Insights | Issue Six

Supply Chain Insights

The Logistics Behind the Australian Formula 1 Grand Prix

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About The Magazine

Published quarterly to a circulation of 20,000 + industry professionals across Australia, New Zealand and the wider Asia-Pacific region, Supply Chain Insights Magazine is focused on helping you solve the complexities of today's supply chain. The digital magazine highlights the latest trends, operational strategies, technology advancements and best practice within the logistics industry.

Welcome to Supply Chain Insights Magazine

- your primary source of industry news, focused on innovation, technology and knowledge-sharing in the logistics sector.

In this edition, we have an exclusive interview with Matthew Walton, General Manager Design and Construction for the Australian Grand Prix Corporation, to understand the logistics required to stage Australia’s largest pop-up event.

Features editor Mel Stark also takes an in-depth look at the issue of “How important is a unified supply chain in an uncertain economic environment?”: Retailers are likely to feel the impact of rising interest rates (and tighter household budgets) over the coming year, while at the same time they are carrying higher levels of inventory than ever before (that they built up over the pandemic), and which they need to clear. In such a disrupted operating environment, it is more important than ever that retailers have a unified supply chain strategy in place that integrates their backend supply chain processes and systems with the front-

end customer experience – to ensure that customers can have access to the goods that they want, when they want them and that the consumer experience is optimised.

We highlight how TMX has helped Mondelez lock in a $200M bespoke distribution facility in Melbourne, how Everything But Water achieved unified commerce with Manhattan Associates’ retail solution suite, and Dematic discusses how they automated warehouse operations for Leader Computers.

In more news, Zebra Technologies has released findings from their 2027 Warehouse Vision Study and given us some key trends and technologies transforming warehouse operations, and SOTI discusses how to elevate the customer journey in an eCommerce era. We hope that you enjoy this edition of our magazine and look forward to hearing your feedback!

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News & Insights

Vinpac Invests in Warehouse Automation with Dematic Automated Guided Vehicles

Australia’s largest contract bottler, Vinpac International, has selected Dematic Automated Guided Vehicles (AGVs) to help boost productivity and efficiency at its South Australian facility.

Founded in 1975 to provide contract bottling services to customers in the Australian wine industry and beyond, Vinpac bottles over 10 million 9LE cases annually and distributes them to over 500 customers. It operates out of the Barossa and McLaren Vale wine regions in South Australia.

“We are absolutely thrilled to be making an investment in three AGVs for the future growth of our Angaston facility,” said Andrew Holdback, Group Operations Manager at Vinpac International. “The safety of our team is paramount, so the deployment of these AGVs will help enhance the working

environment for our valued team members and deliver the best level of service possible to our customers.”

The advanced, self-charging Dematic AGVs are designed to increase efficiency, productivity, accuracy and safety in manufacturing and distribution centres (DCs), achieving this with high-precision laser guidance and the latest safety scanner technology.

AGVs increase productivity and reliability because they can work 24/7, every day of the year. They also improve the efficiency and accuracy of operations, thereby minimising mistakes and workplace accidents and

significantly improving occupational health and safety standards.

“We are very excited to be working with Vinpac on this project. The Vinpac AGV system will transfer finished goods from production lines to conveyors and manage the empty pallet stacks to/from the palletisers and destackers,” explained Tony Raggio, General Manager for AGVs at Dematic.

The AGVs can lift loads of up to 1,500 kg to a height of four metres. They are powered by high amp hour, maintenancefree batteries and can drive themselves onto charging floor plates when inactive for battery top-ups. ●

Everything But Water Achieves Unified Commerce with Manhattan’s Retail Solution Suite

Leading international swimwear and resortwear retailer, Everything But Water has announced that they have undergone a successful digital retail transformation project, adopting several Manhattan Active® Omni offerings.

Manhattan Active Omni is the first platform to fuse order management and store fulfilment applications with a next-generation point of sale and clienteling capabilities in a single solution. This comprehensive cloud-native

Zebra Technologies Appoints Tami Froese as Chief Supply Chain Officer

Zebra Technologies Corporation, an innovator at the front line of business with solutions and partners that deliver a performance edge, recently announced that Tami Froese has been appointed Chief Supply Chain Officer.

“We are very pleased to have Tami join our executive team as Chief Supply Chain Officer,” said Anders Gustafsson, Chief Executive Officer, Zebra Technologies. “Tami has been successful in the acting role over the past few months, and she has been instrumental in initiating meaningful actions to improve our supply chain.

unified commerce solution, which includes Manhattan Active Point of Sale, Order Management and Store Inventory & Fulfillment, was recently deployed across Everything But Water’s extensive retail network.

The new solutions provide Everything But Water store associates the tools they need to serve their customers regardless of channel. By breaking down the silos between digital and physical systems, store associates now have a 360-degree view of customer information and the ability to transact against merchandise regardless of where the item may physically reside.

“Everything But Water was looking to digitally transform our shopping experience, and we found the perfect partner in Manhattan Associates,” said Randall A. Blumenthal, chairman and CEO of Everything But Water. “Manhattan’s comprehensive, unified commerce platform allows our associates to deliver unparalleled, personalised service and advanced omnichannel fulfilment in stores and online.”

“Manhattan’s suite of retail solutions will help forward-looking brands like Everything But Water move closer to their customers and optimise their operating margins while doing so,” said Tony DiPaolo, vice president of Retail Solutions for Manhattan Associates. “This powerful unified commerce suite combines point of sale, order management, store fulfilment and inventory management in a single, seamless application. Equipped with this solution, Everything But Water store associates can quickly and easily perform advanced retail functions like ship

We are pleased to fill this critical position with internal talent as we continue to prioritise building a strong, inclusive culture with high-performing talent.”

Froese joined Zebra in 2020 as Vice President, Global Procurement, responsibile for all Zebra’s direct and indirect procurement. Prior to Zebra, she worked at General Motors, where she held leadership roles in supply chain and crossfunctional leadership roles in manufacturing, engineering and transformation. Froese received her bachelor’s degree in supply chain management from Michigan State University and a master’s degree in business administration from Oakland University.

“I’m honoured to be appointed Zebra’s Chief Supply Chain Officer and collaborate with our leadership team to advance our efforts in strengthening our supply chain operational excellence and resiliency to enable high performance,” said Froese.

“I look forward to further expanding our strong relationships with suppliers and partnering with our sales team to support our customers as they digitise and automate their workflows.” ●

from store, as well as endless aisle and mixed cart transactions.”

A resilient cloud-native application, Manhattan Point of Sale is always current and continuously adaptive. It offers a single intuitive associate experience across any combination of Windows, iOS and Android devices in the store. Manhattan Active Order Management, the recognized industry leader, is the system of truth for customer orders across all channels and geographies. ●

Warehouse Design Revolutionised with TMX’s Industry-First Metaverse Environment

operating model was going to be fit for purpose for the long-term across all different parts of our business. TMX enabled us to see the facility in its entirety using innovative virtual reality software before construction began. This gave us the peace of mind that every element of the design was as intended. It also allowed us to be taken on the design journey despite being in the middle of COVID-19 lockdowns and mandated work-from-home orders,” said Marcus Bartlett, Munro’s Co-CEO.

The TMX Metaverse is a virtual environment where warehouse design solutions come to life. It allows clients and project teams to collaborate and optimise layouts and processes immersively in realtime and from anywhere around the world before committing to the build.

The unique properties of the TMX Metaverse facilitate increased productivity, innovation and transparent decision-making across projects of all complexities, increasing transparency, productivity and efficiencies

while reducing risk, time and costs.

The TMX Metaverse was created as a response to the disruptions caused by the COVID-19 pandemic. It aimed to futureproof communication and collaboration in a decentralised, post-covid environment and improved agility and effectiveness in responding to future pressures. Munro Footwear Group was the first customer to reap the benefits of TMX Metaverse.

“Before we embarked on this (warehouse) investment, we had to be certain the size, and

“We are privileged to be at the cutting edge of this technology and excited for what the future holds within the TMX Metaverse.,” said Tom Yang, the architect behind the TMX Metaverse and Head of Design & Innovation at TMX. “It will revolutionise the way we design, collaborate and optimise warehouse solutions; it is the future of DC design”. ●

TMX, a full-service digital and end-to-end supply chain consultancy, recently launched its TMX Metaverse, becoming the pioneer in harnessing the power of immersive technologies to revolutionise the way warehouse solutions are designed and optimised.

Key Advances in Store Inventory Management

Retailers increasingly depend on their stores to fulfil both in-store and online orders. However, their ability to do so is often hindered by poor store inventory accuracy, which frequently falls below 70%. In fact, a recent survey found that only 3% of retailers believed they had an accurate view of inventory in stores and across their distribution network.

As a result, a new vision for an RFIDpowered store has been unveiled by Manhattan Associates. Manhattan Active® Omni suite has expanded its support of RFID tags for automating and streamlining the inventory counting, receiving, picking, checkout, return and exchange processes. With this new solution, retailers can make more accurate promises, increase conversion rates and maximise inventory exposure for selling.

Manhattan has addressed store inventory challenges by enabling its point-of-sale and store fulfillment solutions with handheld RFID support for all inventory management and order fulfilment activities. By combining RFID technology with Manhattan Active Omni, retailers can increase store inventory accuracy from 70% to nearly 100%.

Manhattan’s solution also reduces inventoryrelated labour hours, helps associates quickly locate merchandise and expedites transactions at the point of sale.

Manhattan Active Omni’s RFID capabilities streamline and automate inventory counting and receiving processes. Store-wide inventory counts can be performed quickly and accurately by store associates armed with the latest handheld devices, such as Zebra’s RFD series. Associates can also use the mobile RFID

scanners to significantly reduce the time required to perform unit-level receiving of new inventory items.

In active store environments, it is common for merchandise to be moved by customers or even misplaced by store staff. Manhattan’s new “find” mode works just like a metal detector, using handheld RFID devices to direct store associates to the precise location of tagged items, reducing inventory shortages and time spent hunting for missing items.

Manhattan’s new RFID capabilities can also speed up sales transactions and returns. Readers placed at the point-ofsale capture tag information as soon as the merchandise is placed on the counter, immediately populating the customer’s shopping cart.

“Manhattan Active Omni delivers a unified approach to selling, engaging and fulfilling in a single store application. By integrating RFID into its store solutions,

Manhattan can reduce the time and effort required to implement RFID while ensuring store associates can continue to leverage the most advanced store solution in the market,” said Amy Tennent, senior director of Product Management for Manhattan.

“Agile omnichannel inventory management and fulfilment are critical to modern store operation,” said Bill Toney, vice president Global RFID Market Development at Avery Dennison. “We believe the combination of Manhattan’s store solutions and Avery Dennison’s innovative RFID and digital identification solutions will enable retailers to transform inventory management and streamline store operations while delivering a first-class consumer experience.” ●

For more information visit: manh.com/au

Trends and Technologies Transforming Warehouse Operations

WRITTEN BY TOM CHRISTODOULOU, SALES VICE PRESIDENT ANZ, ZEBRA TECHNOLOGIES

A Global View of Warehousing

For years, warehouse operators have been adapting to changing consumer habits, growing labour recruitment and productivity challenges, as well as increasingly interconnected supply chains. Fluctuating market conditions and new disruptors are prompting decision-makers to accelerate their plans to improve workforce productivity, responsiveness and agility.

• 80% of decision-makers agree the pandemic prompted faster modernisation.

• 87% plan to accelerate timelines of modernisation projects within three years.

• 61% plan to implement real-time inventory tracking within a year.

While the pandemic highlighted how quickly supply chain issues can impact the availability of goods, disruption can occur at any time due to natural disasters, geopolitical tensions, cyberattacks, labour strikes and more. As manufactured products become more complex, supply chains are more prone to interruption. Warehousing decisionmakers realise they need to do their part to support these efforts.

Earlier this year, Zebra Technologies commissioned a global research study among decision-makers and warehouse staff to analyse the latest trends and technologies transforming warehouse operations. The study included over 1,500 respondents across manufacturing, retail, transportation, logistics and wholesale distribution organisations.

• 87% agree new technology is needed to be competitive in the on-demand economy.

The explosion of eCommerce

The need for speed, increasing order and shipping volumes, and consumers’ changing purchase preferences uncovered some key challenges driving them to make changes. The top three challenges highlighted by decision-makers were:

1. Faster delivery to end customers

2. Increased transportation costs

3. Inventory accuracy and visibility

Change is nothing new for those in warehousing, distribution and fulfilment.

But the pandemic accelerated a number of trends affecting the supply chain, increasing the need to make warehouse operations as agile, automated and resilient as possible.

Labour challenges are another significant concern among decision-makers. More than half report finding and training warehouse workers among the biggest challenges their organisation faces with regard to labour, and 85% report they have already prioritised labour optimisation or plan to do so within the next three years.

From 2019 to today

Despite recent challenges, warehouse operators have made progress in several areas they identified as a “priority” in the 2019 Zebra Global Warehousing Vision Study.

With the rise in e-commerce, decision-makers in the current survey ranked returns management as their top operational challenge, along with many fulfilment-related outbound operations. Concerns and priorities in the 2019 survey were more generalised around recruitment, productivity, and utilisation.

report it takes an average of 4.7 weeks to train new staff to full productivity), they need a backup plan in case it takes longer than expected, especially during peak periods. Eight in 10 say a greater reliance on automation is in their future. Of those who have already implemented automation or plan to within the next three years, 66% say they are doing so to offset their recruitment challenges.

Employee sentiment is also greatly influenced by the technology their employer provides them, with 83% agreeing they would be more likely to work for an employer that gives associates modern devices versus one that provides older or no devices. Decisionmakers concur, with nearly nine in 10 agreeing that technological advancement will make the warehouse environment more attractive to workers. When working with technology, 83% of employees expect the business software applications and hardware devices their employer provides to be as easy to use as their personal smartphones.

Today, in addition to augmenting workers with devices and/or automation, five in 10 say they’re also using sensor or real-time location technology in a targeted or widespread manner to speed up and add more visibility to their operations. Doing so helps them provide the best next move to their workers, as well as more predictive capabilities. By 2027, almost six in 10 plan to utilise real-time visibility.

Key Takeaways

In 2019, nearly a quarter (23%) of respondents managed operations with all paper-based or fixed workstation systems. Decision-makers say that will drop to only 5% within the next five years, and a greater focus will be placed on augmenting workers with mobile devices and automation solutions. Positive workplace changes have also been noted since 2019. News of short-staffed warehouses and fulfilment centres dominated headlines for over two years. However, it has not caused current warehouse staff to take a negative view of the matter. In the current survey, 82% of warehouse staff say their employers’ difficulties in hiring and retaining labour have prompted improvements. Specifically, they say their employer has:

• 60% improved working conditions

• 57% used technology to make work easier

• 45% increased wages and bonuses

• 43% provided technology to enable flexible work shifts.

Embracing Technology in New Ways

Decision-makers understand the importance of technology, with 87% confirming the need to implement new technology to stay competitive in the current on-demand economy. While technology investment carries some risk, 82% say their organisations believe investing in automation far outweighs the risk of not implementing it.

With warehouse labour becoming increasingly difficult to attract and retain (decision-makers

• Market Pressures Become Catalysts for Positive Changes: Decision-makers agree they must implement new technologies to be competitive in today’s on-demand economy, accelerating timelines and increasing funding. Front-line workers say positive workplace changes are happening even amid labour shortages. They report improved working conditions and new technology to make their jobs easier, increased wages and bonuses, and more flexible work shifts due to new technologies.

• Top Warehouse Challenges: Shipping volumes have increased more than 20% on average for both business-to-business and business-to-consumer orders since 2019. Increased e-commerce activity is challenging decision-makers with unpredictable customer demands, faster delivery times and the need for greater inventory accuracy. Operationally, returns management and several outbound fulfilment-related operations are challenging decision-makers.

• Five-Year Technology Outlook for Warehouse Operations: Reducing unnecessary tasks performed by front-line workers is a priority for decision-makers and workers themselves. Both are concerned they will only meet their business objectives if more technology investments are made to improve operations. ●

For more information visit: connect.zebra.com

Today, warehouse operators are focused on identifying their weakest operational areas. This will enable them to prioritise improvements more effectively.

How Retailers Can Address Supply Chain Disruption Through Automation

WRITTEN BY MICHAEL BRADSHAW SENIOR DIRECTOR OF SYSTEMS AND SOLUTIONS DESIGN AT DEMATIC

The regional retail sector faces immense challenges in 2023. Higher staffing costs and inflationary pressures that increase fuel, storage and material expenses mean that there has never been there has never been a more pressing time for organisations to review how they handle their inventory management and distribution practices.

In an operating environment where supply chain disruption is the norm and customer expectations have never been higher, companies need to review and optimise processes to increase productivity, remove non-value-adding activities, reduce errors and increase the speed of operations.

For many years, companies on automation journeys have invested in low-level islands of automation, focusing on a single application such as storage, order picking, or transport. Then, as they grew and became more experienced with automation, organisations would eventually invest in more integrated, fully-automated systems. However, advances in automation during recent years have led to wider-scale process automation optimisation becoming much more accessible and feasible to more companies.

How automation can help retailers meet operational challenges

The automation of warehouse and logistics processes can help retail organisations address key process optimisation, worker efficiency and inventory management challenges in several ways, including:

Optimising human activity and increasing worker efficiency in the supply-chain process can help ensure a worker’s time is better used, increasing both the speed and accuracy of processing.

Opportunities for optimisation become available when you know how, when and

how often tasks are performed. From here, you can streamline operations, reduce repetition, limit the number of touches, improve operator ergonomics, reduce training time for new users, and improve the overall worker environment. For example, real-time instructions to workers via lightdirected displays, a mobile computer or audio headsets can increase speed by having workers confirm actions in real-time to improve accuracy, operational visibility, and labour management by removing the need to handle paper pick lists.

• Introducing checks and balances to optimise efficiency and quality control.

The need for retailers and wholesalers to store and manage inventory is constantly changing, so efficiency and movement needs to be reviewed continuously.

Storage has moved from a simple static operation to dynamic storage, which provides optimisation benefits in warehouses and retail stores. Automated Storage Retrieval Systems (AS/RS), along with Automated Guided Vehicles (AGVs) and mobile robotic and shuttle systems, can help retailers better manage their stock levels and improve their supply chain operations to meet customer demand.

Optimising inventory offers the benefits of:

• Maximising storage capacity – for example, by increasing storage density and more effectively using headroom.

• Optimising stock accessibility and the speed with which products are transported between applications.

• Centralising inventory to get efficiencies in scale and reducing to the required level of ‘safety stock’.

• Locating inventory closer to consumers to improve delivery speeds.

Processes provide the structure that allows supply chains to function. There is a need for companies to continuously review and optimise processes as a way of increasing productivity, removing non-value-adding activities, reducing errors, and increasing the speed of operations. This includes:

• Streamlining processes to eliminate touches – the number of times workers need to handle a product.

• Reducing operator travel – a major task in manual picking operations, which adds no value.

• Combining processes, such as batchpicking products for multiple orders or doing stock-take checks while picking.

The importance of automation

Today, it is crucial to have automated processes that simplify the supply chain. This can be achieved by eliminating tasks that do not add value, minimising unnecessary space and reducing inventory management and distribution errors. With accelerated automation and optimisation, retailers can reduce operational costs and gain flexibility and speed to meet customer demands. ●

Feature

CHAIN INSIGHTS

COVID-19 may have forced the cancellation of the 2020 and 2021 Australian Grand Prix, but the excitement of Formula 1 returned to Melbourne this year, with the race attracting a record crowd of 419,114 over the four-day event.

Supply Chain Insights talks to Matthew Walton, General Manager Design and Construction for the Australian Grand Prix Corporation, to understand the logistics required to stage Australia’s largest pop-up event.

Like the Formula 1 cars competing at the Albert Park Circuit, the logistics supporting this year’s race required careful planning and faultless execution.

“The transition between 2020 and 2022 was remarkable, with the uplift in sales and build growing by over 30 per cent,” says Matthew. “Traditionally, the grandstand seated 27,000, but capacity increased to 39,000 this year. The tickets were sold over a weekend and, incredibly, both days were sold out in an hour.”

The challenges of a greenfield site

Scaling up the event came with a range of logistical challenges. “In the past, we created the event and then modified it in following years,” Matthew explains. “In 2022, we didn’t take a cookie-cutter approach; we saw an opportunity to redesign and rebuild.”

Matthew identifies this year’s change of date as the biggest logistical challenge. “The race, traditionally a March event, was moved to mid-April. This changed the occupation period and the postrace remediation program. My role is not only to build and dismantle but also to return the park to its original condition.

A further challenge was the track was located in a public park, so it had to be built within a public space. “We work closely with sporting clubs, the community, and tenants in the park to minimise our impact. The complexities are predominantly around fields and ovals where sports are played throughout the year, in winter and summer”.

Trucking requirements

A 34,000 square-meter storage yard located at Tottenham housed the race’s infrastructure, overpasses, and some operational assets.

“The distance between Tottenham and Albert Park is about 20 minutes on a good day, but the Westgate Bridge can be a real challenge,” he says. “The road network is extremely difficult, especially as our debris fencing is over height. Although in previous years we drove down Canterbury Road with only inches between the debris fencing and the wires, there are tram lines situated there now. That was always the best route, but it became too hard in the last two years, so we’ve changed our route.”

Around 19,300 tons of assets were delivered to Albert Park at event time and then returned to Tottenham, so the logistics involved in that volume of trucking is massive. Because traffic conditions between Tottenham and Lakeside vary, people had to communicate in real-time to delay trucks or bring them forward.

The logistical complexities include managing our stakeholder engagement with all parties, and that's quite a complex beast.”

There were approximately 4,700 truck movements back and forth over the West Gate Bridge during the 12-week build.

“We moved 3,500 concrete track barriers, each weighing five tons, but one semi could only carry five barriers. Then you had the debris fence panels on top of that. In one stillage for debris fencing, the fencing used to stop the cars going into the spectators, there was 11 barriers per stillage, and one truck could only carry one stillage. There were 750 truckloads just to carry our debris fencing.

“We contracted supply with Linfox, our key logistics arm. Linfox has a well-oiled machine that starts in week seven. And when I talk about week seven, I work backwards. Week twelve's the start of our build, week one is the end of our build, and then we have event week. Week seven is when the track build commences. During that period, Linfox built up the number of trucks, as governed by our track build schedule.

“We had a detailed program specifically for the barrier install because of our occupation program and because we couldn’t just go into the park and drop barriers and debris fencing wherever we like.

“There were road closures to work through. We worked with Parks Victoria because they are the land manager who manages the roads in Albert Park. We also engaged with VicRoads to ensure there are appropriate closures in place to ensure Lakeside Drive was managed while we completed the build.

Freight arrived by sea and air

“You can imagine the logistics from an F1 team perspective. They arrive, set up, run their race, they pack up and fly out that night. Their air freight follows, arriving in the next country over the next couple of days and then they'll start building again. It's just one big travelling roadshow circus.”

“Our freight consultant, Gibson Freight, brings 40 footers in and side lifts them into pit lane. DHL, an F1 freight supplier, unloads those containers and moves all those boxes, fuel and catering equipment into the respective areas within the Formula 1 paddock.

“That part of the puzzle is completed by the Friday or Saturday of week one, and then the air freight follows quickly after that. The main straight was taken over.

“The fundamental change we made in 2022 was closing the main straight. The freight operation was becoming too large to allow the public to drive past in a single lane. The risk associated with managing freight, forklifts, team operations and so forth became too great.

This year’s Grand Pix required approximately 900 tons of air freight, which equates to nine jumbo jets. The Formula 1 organisation flies in around 200 tons, including broadcast equipment and an estimated 500 tons of sea freight.

It's just one big travelling roadshow circus.

“There's a rotation between Gibson Freight and our logistics arm, Cameron's Transport; they work hand in hand. One drives the trucks, and the other coordinates the freight handling, transportation and customs elements that allow the freight to enter the country.

Technology is key

Matthew engaged IDM as the project manager to facilitate the management of the suppliers on the ground. IDM use a range of tools within its system. The company has created its own internal system, FMS, which is a facility management software. This is more about inventory than logistical scheduling, and they use Gantt charts, Excel, Smartsheets.

Linfox also had a scheduler at the Tottenham storage yard who took a direct hands-on approach, communicating with the onsite team and then coordinating the timing and the delivery of assets to the park. There was a program created in a Smartsheet form showing the schedule of the build; then, between the scheduler and the team on site, assets were transferred accordingly.

Lessons learned

Matthew says the most significant lesson from this year’s race is the need to be adaptable and smarter when an event grows. “We've learned to adapt within the business, probably less about the logistics and more about the venue operation. We've learned how to redesign a venue to accommodate the growth and popularity of the event. We have consolidated the learnings from 2022, particularly around venue capacities, how to move people around the venue, and have appropriate amenities and food and beverage.” ●

“The cars used to arrive fully built, and it was so exciting when the delivery was shown on the news. Now they are packed away in boxes in bits and pieces and rapidly built once the garages are done.”

Supply Chain Commerce & the Green Imperative

WRITTEN BY RAGHAV SIBAL, MANAGING DIRECTOR, MANHATTAN ASSOCIATES

The pandemic exposed the fragility of many supply chain networks and their inability to sense and dynamically adjust to shifting demands and consumer preferences, labour requirements, and transportation, causing havoc to economies and brands worldwide.

However, what has been a saving grace during this time is technology. Investments in technology and automation in distribution centres are now at the forefront of most Chief Supply Chain Officers’ agendas. In fact, Gartner recently upped its supply chain management technology forecast from 8% to 14% in compounded annual growth – forecasting a $28 billion investment by 2025.

The retail sector is one of the many industries

investing in and adopting new technologies to stay afloat. Retail is racing to transform its store, digital, fulfilment and customer service experiences to win over omnichannel consumers, boost employee productivity and increase profitability, all while trying to balance increasing environmental requirements.

Retail’s digital transformation

Digital transformation initiatives have kicked into high gear across retail supply chains, allowing brands to reap the benefits of cloud-based, composable IT architecture, microservices and AI in efforts to match supply with demand better, and sharpen customer expectations.

While it’s clear the retail sector is experiencing a lot of change, at the end of the day, the way revenue is generated has always been the same –

Keep your store shelves stocked, online orders shipped, and customers happy.

The difference between today’s retail landscape and that of the past is that in 2022 there is exponentially more choice. With more and more choices of products, purchase options, fulfilment options, delivery options, and payment options, consumers control the buying journey, making it much more complicated for the brands serving them to meet their expectations.

If the complexity of consumer expectations isn’t

We are in the midst of a real-time, seismic shift as consumers transform expectations for global supply and demand models

enough, many brands are still struggling to mitigate the effects of the pandemic, which include severe labour shortages in warehouses, shipping docks, truck depots, and in stores with retail associates.

Supply chain commerce

Aside from issues around labour shortages, one significant and unforeseen effect of the pandemic tailgating retailers more than anything else is the pressure to improve sustainable and green credentials. Primarily driven by Gen Z consumers, rising expectations for sustainable retail call for a restructuring of the retail supply chain – something that the initiation of supply chain commerce aims to address.

‘Supply chain commerce’ is an emerging market category. At its core, it is about unification and a new way to solve the age-old problem of supply and demand and moving goods from point A to point B. Crucially, that means re-engineering physical and digital supply chains to connect them and bring them in step with consumer and societal expectations of greater responsibility – both today and tomorrow.

consumers are 38 per cent more likely to have shopped online in the last three months than in-store.

Time is a premium, and they expect brands to know their likes (and dislikes), serve them, and fulfil their purchases how, when and where they want them. And purpose-driven buyers increasingly demand visibility into brands’ business practices, such as sustainability initiatives – often expecting to see tangible proof of the environmental impact associated with their purchases.

When considering supply, many brands still operate supply chains that pre-date omnichannel capabilities, with some still managing eCommerce and physical stores independently. Optimised for individual use cases and not agile enough to meet the continually shifting demands of modern consumers, these legacy systems simply no longer work in a digital-first retail landscape – both in terms of economics and, crucially, from an environmental perspective too.

A retail sector for the future

The shift in spending power toward Gen Z is a massive development. While generational changes are a regular occurrence, maybe no shift is (or will be) more seismic than the rise of this ‘Zoomer’ group.

According to a recent article in Vogue, Gen Z

This awareness of societal trends is also leading to some key generational spending markers. Zoomers believe that the generations before them represented overconsumption, capitalism and materialism, meaning they are more likely to associate themselves and their wallets with brands that match their core values, such as environmentalism, equality and fair trade.

Supply chains are undoubtedly one of the fundamental pillars that underpin globalisation, capitalism and consumerism. Yet those issues are often cited as primary causes of the current climate emergency. In our minds, supply chain commerce represents more than the direct fulfilment of supply and demand; it creates new opportunities for brands to deliver greener, more-sustainable products, shipping options, and return choices to consumers.

Technology to serve this social demand for sustainability

The right technology can empower and enable companies to offer their consumers more informed and greener options at every stage of the purchasing process.

It’s at work from the moment a person clicks on a buy-now button, to a more efficient packing process that reduces shipping volume, to optimised transportation routing that reduces travel kilometres, trucks on the road and planes in the air. The end results are reduced CO2 emissions, exceptional customer experiences and greater alignment with consumer sentiments – all at the same time.

Unifying all elements of the buying journey, from warehouse and transportation to commerce and fulfilment, makes it possible. That allows consumers and brands to make last-minute order changes or combine shipments right up until items leave the warehouse, store, dark site or micro fulfilment centre. Supply chain commerce gives the end-consumer tools to make greener, more sustainable purchasing decisions, and brands that do so will likely be rewarded with greater loyalty and repeat business. ●

For more information visit: manh.com/en-au

In terms of demand, the last couple of years have seen vast numbers of consumers becoming omnichannel natives, making purchases from physical stores, online, call centres, through mobile apps, social media platforms and even pop-up stores.

Additionally, they are willing to purchase across multiple channels, with an appetite for higher-quality items and – just as importantly – are eager to stay on trend with cultural developments like sustainability.

The Australian and New Zealand Cold Chain Sector – The Road Ahead

WRITTEN BY NICK GREENWELL DIRECTOR OF PROPERTY, TMX

The ANZ Cold Chain sector is integral to the region’s food and pharma supply chain.

It plays a critical role in feeding the population and supporting broader responses to health initiatives, like vaccine rollouts, by ensuring that perishable goods are transported and stored at the appropriate temperature from the source to the consumer.

In 2023, the sector is likely to face several challenges, but the opportunities for those willing to innovate and thrive are many. Here are a few key challenges and opportunities that TMX sees as critical for the sector in the future.

Challenges

Labour shortages:

The ANZ cold chain sector relies heavily on manual labour, so with the NZ Government describing labour shortages as “the biggest issue facing New Zealand businesses” and an unemployment rate of only 3.5% in Australia, we are likely to see a continued shortage of workers in 2023 impacting the sector.

This could lead to increased labour costs and difficulty finding and retaining employees. However, there may also be opportunities to use automation and other technological solutions to improve efficiency and reduce the reliance on labour. TMX recently supported Teys Australia in designing and managing the delivery of a 12,340sqm fully automated cold

storage facility at the Port of Brisbane, which included the installation of a high-bay automated storage and

Australia is already experiencing the impacts of a changing climate, with every decade since 1950 being warmer than the one before it, and our average temperature already up by around 1.44 degrees Celsius since records began in 1910. The story is similar in New Zealand, where extreme weather events have occurred four to five times more

We live this reality through more frequent and severe heatwaves, bushfires, floods, and droughts, and we have seen a range of these impact our supply chains in recent months and years. These events can disrupt the cold chain by damaging infrastructure, reducing the availability of refrigerated transport,

Now, more than ever, there is a concerted push from investors and consumers for the sector to adopt more eco-friendly practices and technologies;

To help address these issues, many organisations have recently made significant investments in renewable energy sources to power their new cold storage facilities, improved insulation in warehouse design and implemented more efficient packaging and transportation methods.

Opportunities

Locally produced and sourced food products:

As consumers become more concerned about the environmental impact of their food choices, there is a growing preference for locally grown and produced products. This presents an opportunity for the cold chain sector to support and facilitate the distribution of locally sourced products.

Trade & export:

As the cost of diesel continues to rise, the sector will need to find ways to reduce its reliance on fossil fuels and adopt alternative energy sources. Additionally, the cost of refrigerants, essential for maintaining the temperature of goods during transportation, has increased in recent

As the world's population continues to grow, there is an increasing demand for high-quality food products, and Australia is well-positioned to meet this demand with its abundance of natural resources and a strong reputation for producing high-quality food products. Throughout 2022 we have seen significant growth opportunities for the Australian cold chain sector to tap into emerging markets, such as Asia and the Middle East, which are experiencing rapid economic.

Online grocery shopping and home delivery:

With the rise of eCommerce and the growing trend of online grocery shopping, there is a need for longer shelf-life products that can withstand the rigours of transportation and storage. It is estimated that up to one-third of all food produced globally is lost or wasted. In Australia, this is due to a variety of factors, such as overproduction, inadequate storage and transport, and consumer waste. Part of the solution requires the industry to drive innovative packaging and storage solutions, and adopt advanced

It is anticipated that we will continue to see growth in this sector in 2023, leading to an increased need for cold chain logistics to support the transportation and storage of perishable goods.

Technological innovation:

To improve efficiency and reduce costs, many organisations are now implementing sensors and data analytics to monitor temperature and humidity during transportation and storage. This allows them to reduce waste and ensure that goods are maintained at optimal conditions.

The ANZ cold chain sector will continue to face challenges in 2023, including the need to address sustainability concerns, the increasing demand for locally produced and sourced food products, and the potential for export growth. To take advantage of future market opportunities, it will be important for the sector to adopt innovative technologies and practices and work closely with stakeholders across the food industry to continue to play a vital role in the country's supply chain and support the growth of these economies. ●

For more information visit: tmx.global

Inflation Uncertainty, Profit Warnings and Excess Inventory: What’s Next for Supply Chains?

SUPPLY CHAIN INSIGHTS FEATURE

asks: how can a unified supply chain help weather the storm?

Early economic predictions for this year are urging consumers, investors and businesses to brace for another turbulent year as financial pressures accelerate in early 2023.

The most recent Australian Bureau of Statistics’ consumer price index (CPI) revealed headline inflation rose to 7.3% – a 32-year high. According to Michelle Marquardt, Head of Prices Statistics at the Australian Bureau of Statistics, the latest data demonstrates there are still ongoing inflationary pressures in the economy. “Increasing operating costs, including wages, electricity, and weather affected reductions in food supplies continue to drive prices up,” Michelle said.

Ongoing disruptions since the onset of Covid-19 and rising energy and food costs originating from Russia’s invasion of Ukraine are continuing to push inflation even higher. According to NAB forecasts, inflation is expected to peak higher and persist for longer, with headline inflation to peak at 8% this year.

While the greater impact of rising interest rates and tighter household budgets are not yet clear, here we discuss some of the key themes and coping strategies with ANZ’s supply chain leaders.

With inflation at record highs, interest rates soaring and a cost-of-living crisis looming, the global economy looks like it’s headed for stormy waters this year. Supply Chain Insights

Rising markdowns, falling profits

Largely driven by a shift from a ‘just in time’ to ‘just in case’ mindset that dominated supply chain strategies since the onset of the pandemic, retailers are now carrying more inventory than ever before.

According to Pas Tomasiello, Senior Director –Integrated Systems at Dematic, there are difficult decisions ahead as retailers need to decide what to do with excess inventory.

This inventory stockpiling of the past two years was not unique to the Australian market. Data from the US Census Bureau revealed in August last year, clothing retailers were holding US$58 billion in inventory – a 28.4% increase on August 2021.

In a low-growth economic scenario, businesses may be forced to sell their inventory at discounted prices or even write it off to free up pressure on their balance sheets. However, Royston Phua, Vertical Practice Lead, APAC Supply Chain for Zebra Technologies says this may not provide the necessary liquidity for targeted investments or operating activities.

“Businesses will have to weigh their options carefully and act quickly to take advantage of any opportunities in a year of uncertainty,” he says.

According to Travis Erridge, Co-Founder and Chief Executive Officer of TMX, while Black Friday sales were strong across the board in Australia, at a closer look there’s a different story behind the sales figures.

“Black Friday sales were up in most segments, but what’s interesting is discounting rates almost doubled during that time,” he says.

“Businesses will have to weigh their options carefully and act quickly to take advantage of any opportunities in a year of uncertainty.”

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

“As supply chain leaders embrace a ‘just-in-case’ mindset instead of the previously well-established ‘just-in-time’ model, there will be competing pressures on surety of supply in today’s volatility vs inventory levels and associated cash flows.”

Raghav Sibal, Managing Director – ANZ at Manhattan Associates says retailers have had to get ahead of the predicted pull back in consumer spending and think strategically about how they can shift large amounts of stock as a recession looms.

“Many of the retailers who accumulated more stock than they needed have had to offer prolonged periods of discounting during peak sales periods,” Raghav says.

Similarly, sports retailer Nike recently reported a rise in earnings and revenue for its second quarter ending 30 November 2022 – however the retailer spoke of the need for “aggressive markdowns” in an attempt to liquidate inventory.

Many retailers worldwide are on the same journey, and locally in Australia e-commerce retailer Kogan revealed as of June 2022 its inventory levels reached $227.9 million – compared to $160 million the previous year.

However, Manhattan’s Raghav Sibal points out discounting inventory as a way out of this situation requires a delicate balance.

to a more connected and self-orchestrating supply chain ecosystem.

“Many supply chains have traditionally been ‘broken’ through inefficient operational methodologies, lack of visibility and resistance to technology deployments and partnerships etc., and this continues to be one of the key challenges for supply chain operational excellence during and post pandemic,” Zebra Technologies’ Royston Phua says.

Similarly, Raghav Sibal at Manhattan Associates notes that the organisations who came out of this period profitably have managed the supply chain effectively and digitally. “They know where their inventory is, they have visibility across their network and they are making stock available at the right time, and at the lowest cost to the consumer,” he says.

In a survey conducted by PwC, which featured responses from 1,600+ executives across seven industry sectors in 33 territories, the companies who were identified as “Digital Supply Chain Champions” were well ahead of the curve when it came to supply chain excellence.

Those identified as “Digital Champions” by PwC achieved strong cost savings and sharp revenue increases across the board. They also benefited from more reliable delivery, reduced inventories and benefits beyond the numbers including strong collaboration and partnerships.

Retailers will need to look at which categories, which brands and think opportunistically to free up cash flow and working capital,” he says.

According to TMX’s Travis Erridge, by heavily discounting, retailers dodged a bullet this year.

“During Black Friday, Cyber Monday and early Christmas sales retailers were clearly desperate to clear stock and get their inventory down. Selling large amounts of stock to free up warehouse space and capital is likely to help avoid some of the difficult inventory decisions retailers would have been facing in the first quarter of 2023,” he says.

Creating a supply chain ecosystem

Volatility, uncertainty and disruptions are driving companies to shift their supply chain strategies and the key to success lies in the transformation

The report, titled Connected and autonomous supply chain ecosystems 2025, identified four areas that organisations need to develop: crossfunctional organisation, digital supply chain upskilling, technical enablement and collaboration with ecosystem partners.

TMX’s Travis Erridge says the term ‘ecosystem’ is going to be a key theme for supply chains this year.

“In low capital environment business there is not as much opportunity to invest, so you have to innovate. For me, that means people working together and partnering up to share infrastructure, resources and developing supply chain ecosystems that benefit everyone,” he tells Supply Chain Insights.

However, long-term investment still has a major role in supply chain success. “By partnering and clustering to create ecosystems, businesses can facilitate short-term developments but they still need to continue to invest in the longer-term as soon as the capital becomes available,” Travis says.

While automated warehousing has been the focus for many businesses in Australia, businesses now

“The unification of the supply chain is going to be the next critical area for larger multi-channel retailers to focus on.”

RAGHAV SIBAL, MANAGING DIRECTOR – ANZ, MANHATTAN ASSOCIATES

“Turning inventory around quickly enough without giving up all of the margin, or too much margin, is a difficult situation to be in.

Volatility, uncertainty and disruptions are driving companies to shift their supply chain strategies and the key to success lies in the transformation to a more connected and self-orchestrating supply chain ecosystem.

have more of an urgent need to look at areas such as sales and operations planning (S&OP) planning, integrated business planning and end-to-end supply chain monitoring,” Travis says. “These are typically the boring, nerdy parts of supply chain management – they’re not as exciting as large-scale automated warehousing, but we need to get back to basics as we continue to navigate this unsettled environment.”

Manhattan’s Raghav Sibal agrees that unification will play a key role this year. “The unification of the supply chain is going to be the next critical area for larger multi-channel retailers to focus on. Not only do we need a unified supply chain –unification across the distribution and transport and warehouse systems - but also unification on the order management side. We need more and more visibility for the customer regardless of whether they are interacting online, in-person or at a digital selfserve kiosk,” he says.

Trends for 2023

According to Zebra Technologies’ Royston Phua, supply chain 4.0 will be the vision and mission for businesses this year. “Businesses will likely continue to explore and adopt cloud computing technologies and AI to improve decision-making and streamline operations. Digitisation and partnerships will also be critical for businesses looking to modernise and adapt to the new normal,” he says.

For TMX’s Travis Erridge, 2023 will be all about datadriven supply chains. “While we’ve had access to data for a long-time now, it was often data which looked backwards and not forwards. The difference this year will be using data to predict what’s going to happen, rather than analyse what has happened,” he says.

“The difference this year will be using data to predict what’s going to happen, rather than analyse what has happened.”

TRAVIS ERRIDGE, CO-FOUNDER & CHIEF EXECUTIVE OFFICER, TMX

Though we are yet to see a decline in the most recent retail figures, most economists are predicting that the economic downturn and high inflation will drive consumers to be more cost conscious this year.

Dematic’s Pas Tomasiello predicts that customers will favour retailers with a reputation for fast and accurate delivery, alongside seamless returns. “There’s likely to be a shift in consumer behaviour, especially with online shopping, as customers can easily shop around and look for the best priced item online,” he says.

Zebra Technologies’ Royston Phua agrees.

The curse of high inflation

The International Monetary Fund’s (IMF’s) October 2022 outlook warned: “the worst is yet to come and for many people, 2023 will feel like a recession.”

Australia is a key player in the global economy, both as an exporter and consumer of goods and services. As such, global issues have a significant impact on Australian businesses.

“Industries such as timber, agriculture, and fossil fuels are particularly vulnerable to disruptions in global trade, geopolitical conflicts, supply chain constraints, and natural disasters. These disruptions can affect the ability of Australian businesses to sell their products and access the resources they need to operate, potentially impacting their financial performance,” Zebra Technologies’ Royston Phua says.

TMX’s Travis Erridge shares this view and says this year will be testing for many Australians and Australian businesses.

“Interest rates will continue to rise until inflation goes down, which is unlikely to be this year. With thousands of ultra-low fixed-rate loans expected to expire in mid 2023, the real economic hardship will be in the second half of 2023,” he says.

With so much uncertainty around capital and the economy, there is naturally a growing concern and caution around business investment. However, Travis warns that organisations still need to think long-term.

In addition, Manhattan’s Raghav Sibal says improving the customer journey will be critical this year. “No retailer wants to put consumers in a position where they don’t have flexible choices around buying online, returning in store or through any channel they wish. Going beyond good customer service will be essential this year,” he says.

In line with TMX’s Travis Erridge’s thoughts on data and predictive analytics, Dematic’s Pas Tomasiello says AI diagnostics and predictability will be central to supply chain operations this year.

“Scenario planning in consideration of volatility and unknowns, alongside data and information, will be key to managing volatility and disruption this year,” he says.

“The big watch this year will be ensuring that businesses don’t stop investing in their future. We’ve seen the pandemic cause 10 years of supply chain pain in a two-year period and this need to adapt, change and innovate to survive does not go away just because there is an economic downturn,” Travis concludes. ●

“There’s likely to be a shift in consumer behaviour, especially with online shopping, as customers can easily shop around and look for the best priced item online.”

PAS TOMASIELLO, SENIOR DIRECTOR – INTEGRATED SYSTEMS, DEMATIC

“In a volatile environment, sales may continue to be erratic and unpredictable but if you use data to make informed forward-looking decisions then you will be in a stronger position.”

“We need to also remember that rising inflation and disruption do cause challenges to consumers who potentially have less to spend, but more alternatives to consider based on their preferred purchasing criteria.”

“The importance of planning has never been greater. Businesses need to continue to invest, because when the market returns, they need to be ahead of the game.”

Research Shows High Wages, Yearly Bonuses Still Not Enough in Supply Chain Sector

WRITTEN BY SUPPLY CHAIN INSIGHTS

Supply chain specialist recruitment firm, Bastian Consulting, has released findings from its annual salary survey, uncovering salary trends across Australia and New Zealand.

The Bastian Salary Survey 2022/23, completed by more than 1,300 respondents from Australia and New Zealand, reveals the positions and industries paying the highest wages across Supply Chain, Manufacturing, IT, Consulting and Procurement. The survey also reveals how companies are now differentiating with non-financial benefits.

Featuring results from more than 1,000 respondents, from entry-level to C-suite positions, and interviews with key personnel, the report reveals the elements of a winning employee value proposition:

The report uncovers staff sentiments on salary, shares and benefits, as well as other factors like autonomy, professional development, culture and sustainability.

From entry-level candidates earning more than $70,000 to consultants earning up to $400,000, the survey features comparisons of earnings based on

Key findings of the Bastian Salary Survey

78% of respondents reported a higher turnover rate in the previous twelve months, and 61% expect this

60% of employees are dissatisfied with their

40% of respondents aren’t convinced they’ll stay

75% reported feeling stressed or anxious as the

40% of those in management positions plan to hire more expensive temporary or contract staff

30% of employers make mandatory counter offers

“The higher number of resignations predicted is mainly due to the growing trend of rate shopping: where employees resign simply to receive a counteroffer from their existing company. Interestingly, the report shows what salary increase employees expect to receive, compared to the salary increase employers expect to pay: which is a sizable gap,” Tony Richter, Partner at Bastian Consulting, says. The continual impact of the skill shortage, the growing trend of rate shopping and the role counteroffers play in retaining top talent are discussed, as well as how likely staff are to engage with a recruiter even when not actively job searching.

Key findings include:

• 84% of respondents have been contacted recently by a recruiter, even when they’re not actively job searching

• Over 60% admitted they would reply to an unsolicited message from a recruiter, even when they’re not actively job searching

• Over 25% said they would switch employers for as little as a 5%-10% pay rise

• 45% said they would switch employers for a pay rise of 10%-20%

The survey reveals standard inclusions like private health insurance, vehicles and superannuation contributions continue to feature in salary packages from employers, though they continue to fall short in the eyes of employees.

Discussing the most common “benefits” (which directly impact the business, rather than the lives of employees), the survey reveals the inclusions which actually shift the dial to help retain staff, like support with professional development as well as schemes to support mental and physical wellbeing.

“Given the challenges of the skills shortage, it is no surprise that salary remains a strong retention driver. However, mandatory counter-offers are declining compared to 12 months ago: today, resignation does not automatically produce a matched offer. As explained in the report, employers are now more selective with counter-offers, looking at specific factors when deciding whether to offer one or not.

In this year’s survey, we have also explored the way employers are using non-financial benefits, culture and development opportunities to retain their top performers,” Mr Richter says. ●

The report also explores sentiment around ‘The Great Resignation’, which according to employers, won’t improve anytime soon.

For more information, visit: bconsult.lpages.co/the-2023-bastiansalary-survey-report/

Predictions on resignation spikes in the coming year are also discussed, as well as what employers are doing to prepare.

Mondelez International Locks in $200M Bespoke Melbourne Distribution Facility

One of the world’s largest snacks companies, Mondelez, has committed to a new $200m bespoke distribution centre and 10-year lease at LOGOS’s 90 Palmers Road Estate in Truganina, Victoria.

The new 42,774 sqm facility will consolidate much of the business’ current warehousing and distribution operations in Victoria, uniquely bringing together foodgrade processing, manufacturing, storage and automated distribution facilities at one location.

Mondelez engaged business consultancy TMX to design and procure the purposebuilt facility. In a uniquely structured deal brokered by TMX, Mondelez has committed to a 10-year lease with LOGOS who is providing a full ‘turnkey’ solution, whereby they will not only develop and own the building under a traditional lease model, but also fund and deliver the bespoke fit-out and Automated Storage and Retrieval System (ASRS) as part of the lease structure.

“We understood that Mondelez needed a facility that has the inherent flexibility to grow alongside their business.”

Sustainability initiatives will include a 1MW solar system and 50,000L rainwater tank.

"We are delighted to have Mondelez sign onto a 10-year lease in this facility to boost their business and streamline their manufacturing and distribution processes. This new commitment also sees LOGOS, for the first time, deliver, own and operate the specialised fit-out, including the complex automation systems, with Mondelez as our tenant. We look forward to working with

them on this exciting partnership,” said Darren Searle, LOGOS' Head of Australia and New Zealand.

The new facility will be based in Truganina, 17kms west of Melbourne’s CBD and Ports, offering unrivalled access to key road and railway lines, as well as being in close range to the distribution centres of Mondelez’ main customer base and a large workforce catchment. The new facility is expected to be fully functional by July 2024. ●

“The new facility will improve Mondelez’s supply chain efficiency as well as provide significant flexibility to enable their longterm growth aspiration,” said Sam Dellios, Property Director for TMX.

LOGOS will develop the purpose-built facility over the next 20 months which will include more than 11,000sqm of high-bay space and will target a 5 Star Green Star Rating.

“We are proud to have had the opportunity to design an outcome that met their needs and now begin the construction delivery of this unique and important project.”

Leader Computers Automates Warehouse Operations with Dematic

Leader Computers is a manufacturer and distributor of high-quality Information Communications Technology (ICT) products.

As the largest Australian-owned PC manufacturer, Leader has warehousing and sales offices in Adelaide, Sydney, Melbourne, Brisbane, and Perth. The company supplies exclusively to IT resellers with a large client base across the country.

The company distributes products from over 70 vendors, including the world’s leading brands such as Microsoft, LG, Lenovo, Ubiquiti, ASUS, Gigabyte, MSI, Corsair, plus many more. Leader also manufactures Leader-branded PCs, Notebooks, Tablets, and Intel™ white box series products and distributes a huge range of IT products and peripherals.

“Leader Computers, which is a trade-only distributor of IT products and solutions, was looking to upgrade its Lidcombe warehouse facility in Sydney,” said David Lamb, Consulting Manager, Dematic. “As an integrator of automated warehousing solutions, Dematic was able to help Leader to transform its warehouse with automation.”

Assessing Leader Computers’ needs

Leader Computers’ Lidcombe warehouse stores approximately 8,500 product SKUs, including very large server racks and monitors, right through to very

small products such as thumb drives and CPUs.

“Throughout the pandemic, working from home and home-schooling really started to take off. Webcams and all the other IT infrastructure that was necessary had an explosion of throughput. This led to Leader Computers experiencing increased orders from the resellers they work with and more pressure on warehouse operations,” added David.

In response to the increased demand, and as a leading technology company, Leader Computers wanted to upgrade its warehouse with automation that would increase business efficiency, accuracy, and productivity, as well as make better use of the available warehouse space.

“The requirements for this automation project were, one, to save labour; two, to save on footprint; and thirdly, for Leader Computers to walk the talk of how you can use technology to improve your business,” said David.

Leader had a high number of product SKUs, but 90% of orders were for ten units or less, plus it needed room for product growth in future. Based on these requirements, Dematic determined that its AutoStore™ solution was the best fit for Leader.

The most important aspects to consider when designing a system are throughput, order profile and storage profile.

AutoStore™ automates Leader’s warehouse

AutoStore™ is an automated storage, goods-toperson (GTP) picking and fulfilment solution designed to maximise warehouse space and minimise manual labour.

“The Leader AutoStore™ solution features nine robots, three goods-to-person ports and 6,662 bins,” explained David. “The products are manually put into aluminium and cube-based grids via an operator from a pallet, which is then picked up by a robot stored in the grid, and when it's required following an order, is picked up and delivered back to the carousel port for the operator.

“The robots have two batteries in play, and they run approximately eight hours during a shift. When the robots get low on charge, they'll return to their charging station where they'll stay in play for up to an hour where they can get full recovery of a hundred per cent.”

AutoStore™ key features and benefits

Compared to a typical manual warehouse operation, AutoStore™ streamlines the process significantly, creating an efficient picking process with a single operator doing the equivalent work of four to five manual pickers. People no longer walk around the warehouse to locate the next pick slot. AutoStore™ utilises a goods-to-person (GTP) methodology, where the products are brought directly to the picker.

“Before the AutoStore™ solution was implemented at Leader Computers, a large order of a few different types of hard drives would take five to six hours to pick. With this new AutoStore™ system, they've been able to pick a similar type of order in just 30 minutes,” said David.

Under their manual operation, Leader picked and packed 20-40 lines per hour, which with has now increased to 150-200.

Likewise, replenishment and returns can be effectively streamlined with AutoStore™. Items are received directly to a single location for insertion into the system. This is especially beneficial for reverse logistics, which in a manual operation, can be a tedious effort to walk around the warehouse and visit each slot to replenish single units. With AutoStore™, the bins are delivered directly to the receiving area and then whisked away by robots for storage. Returns can also be consolidated with existing stock at receiving by delivering specific bins in sequence to the operator.

The expense of storage space and footprint is another key challenge for Australian warehouses. AutoStore™ has the highest storage density of any

GTP solution in the market, allowing businesses to clear up to 80% of the footprint from their existing manual warehousing space, thus avoiding having to move to a larger facility.

The solution improves ergonomics, stock accuracy, pick accuracy and product security.

“With the AutoStore™ solution, security is built in. You literally can't get into the system manually without all the appropriate controls. This was another key benefit of the system for Leader Computers,” added David.

With Dematic and the AutoStore™ solution, stock levels are accurate with continuous cycle-counting, pick rates are clear, and fast-moving and slowmoving SKUs are easily identified. Likewise, service levels are measurable, and easy improvements often reveal themselves within the data and reporting space. Furthermore, the interface can be tailored to integrate with a business’s ERP or WMS.

“The solution is highly adaptable when it comes to service levels and can be quickly expanded. If Leader has a day of higher volume orders, they now have the flexibility to just run the system for longer hours to make sure they get the orders out the door within that timeframe,” said David.

The Leader Computers’ AutoStore™ solution has already been built for 10% annual growth over three years; however, the grid can also be easily expanded and progressively filled with bins, plus robots added, as SKU and storage demand increases. This scaling up can all be done with minimal interruption to operations.

The Dematic approach

Dematic has a consultative approach, with an emphasis placed on developing strong relationships with its customers.

“We've had a successful rollout of AutoStore™ for Leader Computers. When I recently spoke with them, Leader said they considered Dematic as family, and they're really proud of this technology as well.

Most importantly of all, AutoStore™ has already enabled Leader Computers to deliver an enhanced level of customer service to its reseller network.

“Leader’s purpose is to help our resellers grow and be highly profitable. We are always looking at fast ways to get stock to our resellers. AutoStore™ gives us a solution that helps ship fast and on time to thousands of MSPs/IT resellers in Australia. We are proud to be at the cutting edge of technology and to bring this automation to our resellers,” said Theo Kristoris, Managing Director Leader Computers. ●

For more information, visit: dematic.com

Looking Ahead: Pattern Australia Predicts Key eCommerce Trends

WRITTEN BY MERLINE MCGREGOR GENERAL MANAGER, PATTERN AUSTRALIA

Retailers need to meet these demands and become active on platforms their customers prefer to connect, engage and sell.

Given the disrupted operating environment ahead, what trends do brands need to be aware of –and how can they maximise the chances of engaging and converting customers in the future?

Tighter household budgets will lead to an increase in the number of price-sensitive shoppers in Australia. This will shift shopping behaviour and result in a growth in traffic to online marketplaces that customers perceive offer price value.

Undoubtedly, 2023 will be a period of change for the Australian retail sector. Brands will be challenged by a likely reduction in consumer spending and a shift in buyer behaviour as shoppers evolve the channels through which they discover and purchase goods.

The local online marketplace sector evolves with Amazon to become the dominant player.

This growth of price sensitive-shoppers and a general increase in marketplace activity was seen during Cyber Week - with marketplace revenue up by 50% over the Cyber Week period, with Tuesday and Wednesday experiencing the largest growth at +189% and +204% respectively.

To succeed in a competitive online marketplace environment, brands must develop and execute Amazon’s go-to-market strategies as the platform increases market share against eBay and becomes dominant in Australia.

Currently, 30% of Australians have an Amazon Prime membership, a figure expected to rise dramatically in the coming 12 months as the company builds out its infrastructure and attracts new shoppers through price and convenience.

Going forward, brands must become active on key marketplaces to broaden their reach, drive revenue, and act as a defence strategy against competition and unauthorised sellers.

Social commerce offers a top-of-funnel alternative for brands wanting to connect with Millennial and Gen Z Shoppers.

Australian consumers who use social media for online shopping are forecast to increase to 6.4 million by 2024. This increase is expected to rise quickly in the coming year as platforms like Facebook, Instagram, TikTok and Pinterest improve their social commerce capabilities.

We anticipate that although influencers will continue to be an asset to drive consideration for purchase, the growth in brand social commerce spending in Australia will increasingly be allocated to top-of-funnel activity like brand awareness engagement and e-store traffic. As a result, pixel and product feed hygiene must become a priority for brands seeking to attract and convert Millennial and Gen Z buyers across social media.

Customer nurture activity is key to offseting a drop in new shopper acquisition

In a year when new customer acquisition will be challenged, brands must nurture existing customers and invest in activities that foster loyalty. Personalised recommendations and shopping deals that enhance the customer experience, powered by leveraging existing buyer data, will build loyalty and open up new sales opportunities.

Convenience in eCommerce will also be a focal point for brands as retailers will look to nurture the ‘new to eCommerce’ customer set that came through in the past two years. Tactics such as subscription models will offer powerful ways to provide customer stickiness, especially as large players such as Amazon look to expand their Subscribe & Save offering.

Today’s brands are rich in customer data, and these days that is often overlooked or underutilised.

In 2023 retailers can help offset a predicted downturn in new shopper activity by building personalised customer campaigns that reference existing shopper data to maximise sales from those already familiar with your brand. ●

For more information visit: pattern.com/au

The Ultra-Rugged Mobile Computer is Re-Imagined for the New Age of Mobility

Zebra Technologies has launched a new generation of ultra-rugged mobile computers designed to empower frontline staff to deliver a performance edge, whether they’re in the warehouse, loading dock or out making deliveries. The TC73/TC78 mobile computers can stream video and calls, feature intuitive multimedia-rich apps, and augmented reality apps that enable new, more effective workflows. The devices are built to handle three-metre drops to concrete yet are lighter and nearly 20 per cent thinner in the grip area.

The advanced industrial design, ergonomics and exceptional balance provides all day comfort — these devices are easy to hold, grip, and use for any size hand. Your workers can run all the apps they need simultaneously with the firstclass Qualcomm 6490 octa-core processor, memory, and storage. The 6-inch edgeto-edge advanced display is the largest in this product class – easily visible indoors, outdoors and in the wet.

Workers can access the fastest and most reliable wireless connections with Wi-Fi 6E, 5Gand Bluetooth 5.2 – all of which deliver much higher signal quality and use less power than other connections. The standard, extended capacity, wireless charge and BLE batteries all power more than a full shift and provide the intelligence to manage batteries better. And while there are multi-slot cradles for cost-effective backroom management, the TC73/TC78 can be charged anywhere

with a standard USB-C charging cable. With Zebra Dimensioning™ Certified Mobile Parcel and Mobile Parcel, an integrated Time of Flight depth sensor collects accurate ‘legal for trade’ parcel dimensioning in just seconds.

1D/2D scan engine is ideal for workers that need a standard scanning range. The SE55 1D/2D Advanced Range scan engine with IntelliFocus™ technology is ideal for workers who need to capture barcodes in hand and up to 12.2m away. Both scanners capture barcodes in virtually any condition and lighting and are rated for one million actuations.

With SimulScan NG, one press of the scan button can capture all barcodes on an item and process and send information on documents right to your applications. Superior camera technology enables high-quality capture of photos and videos for reliable evidence of proof of delivery, condition, repair and more. The 16 MP rear colour camera, flash LED, High Dynamic Range (HDR), and Optical Image Stabilization (OIS) make it easy to capture highly detailed images every time.

The TC73/TC78 takes audio quality to the next level for callers on both ends. Comprehensive features work together to deliver extraordinary audio clarity: three microphones with noise cancellation to strip out background noise, two speakers for loudness, as well as a high-quality speakerphone and HD voice with Superwideband (SWB), Wideband (WB) and Fullband (FB) support.

When it comes to data capture, you can expect a choice of two highperformance scan engines. The SE4770

The TC73/TC78 can be dropped into a Workstation Connect cradle to connect to a large monitor, keyboard, mouse, printer and more, simultaneously operating as a handheld computer and workstation. If you need RFID, you can choose between two lightning-fast ultra-rugged sleds that can be connected in three different ways — Bluetooth, NFC, or Zebra’s eConnect™ adapter. The RFD9030 sled offers a standard read range of 6.7m, and the RFD9090 offers an extended read range of 22.9m. The TC73/TC78 can also be used as two-way radios or a PBX handset with a custom interface that makes the most complex telephony features simple – inside your facility or out in the field.

With Zebra-only Mobility DNATM tools, your TC73 and TC78 mobile computers deliver an unmatched advantage – a comprehensive toolset improving every aspect of the device lifecycle, integration, security, speed, and management. ●

Ideal at the point of parcel pickup and drop-off locations, these solutions eliminate the inaccuracies in dimensions that lead to undercharging and lost profits.

Ready to go in 20 minutes

It takes just 20 minutes for an order to be picked at Bolloré Logistics’ Blue Hub facility, tailor-built to handle online and store orders for perfumes and cosmetics. A Dematic Goodsto-Person system enables these superior customer service levels for Bolloré clients, optimising order fulfilment speed and accuracy while delivering very high productivity.

With space a premium in Singapore, the Dematic Multishuttle® high-throughput, high-density storage engine provides a 400% increase in capacity. The result: Flexibility, capacity and a superior service for Bolloré Logistics’ clients.

Read more and see it in action at www.dematic.com/bollore

From Click to Delivery: Elevating the Customer Journey in the eCommerce Era

WRITTEN BY MICHAEL DYSON, VP OF SALES, APAC, SOTI

With the ongoing supply chain disruptions and product shortages, is it shocking that consumers are demanding more visibility from click to delivery?

From when they make that first click to the delivery of goods to their doorstep, consumers want insight into every step of the journey.

Online shopping, along with other purchase fulfilment strategies such as curbside pickup, have become the norm, and retailers need to adapt to fulfil the buyer’s shopping experience.

Even though customers are changing how, when and where they shop, they still demand a superior customer experience. This presents both opportunities and challenges for retailers when creating the right formula for success. SOTI’s retail-focused research report, From Clicks to Ships: Navigating the Global Supply Chain Crisis, highlights some of the latest trends in the Australian and global retail market. The report describes how to keep customers happy and the importance of their overall experience.

A Great Experience From the First Click

Good customer service means the quality and timely assistance a business provides to those who use or buy its goods and services. A positive or negative customer experience can have a major impact on any business’s bottom line. It has been estimated that acquiring a new customer costs an organisation over five times more than simply keeping an existing customer happy.

In SOTI’s retail report, 68% of respondents said they expect to know where their order is within the delivery process at all times. Have their new shoes been packaged yet? Are the dog’s new toys out of the warehouse and on the delivery truck? Is their new book out for delivery today? If there’s a hold-up, what is it, and how will it be resolved? Customers want to know every detail, and if a retailer can’t tell them, they’ll shop somewhere they can.

Consumer expectations have changed, and brand loyalty is no longer certain. If a customer’s preferred retailer is unable to provide information for every step of the delivery process, they are happy to look for another retailer who can deliver these insights.

The relationship between a business and its

With shopping habits changing, no one can afford to take customers, new or longstanding, for granted.

customers doesn’t look the same today as it did ten years ago. That means customer service shouldn’t look the same today as it did during pre-pandemic days.

industry globally. From food delivery delays to backorders for new appliances and the bottleneck in the Suez Canal, the supply chain has made headlines throughout the COVID-19 pandemic.

Importantly, consumers understand there are product shortages and supply chain challenges, but they still want their goods when they want them. There are more than just boats or shipping containers stuck at ports. Supply chain issues have been felt every step of the way, with 57% of consumers saying they haven’t been able to buy items they want or have had to opt for alternatives.

With this new awareness, shortages and supply chain constraints are changing consumer shopping habits, such as buying locally instead of relying on overseas shipments. Now more than ever, retailers need the right mobile technology in place to respond to constantly shifting demands and give the consumer the information they require to receive their goods.

How Tech Can Help Retailers Improve the Customer Experience

When customers feel appreciated, companies gain measurable benefits, including the chance to win more of their customers’ spending dollars. The payoffs for great experiences and being made to feel valued are tangible, with up to a 16% price premium on products and services, plus increased loyalty. A premium customer experience can help increase revenue by 4% to 8%.

With customer service comes convenience –another high priority for customers when selecting a retailer. There are technology trends expected to impact and influence the retail industry in the upcoming year, but what conveniences are consumers expecting? The ability to start shopping on one device and pick up where they left off on another device is a big one.

Likewise, consumers expect items placed in a shopping cart to still be there when they return later to complete the transaction. Additionally, consumers expect a personalised shopping experience, seamless and fast delivery, quick checkout processes and an easy, convenient return policy.

If a shipment is delayed, customers want to know, in detail, when it will arrive at their doorstep. If an item is out of stock, customers demand to know when it will be available. In fact, just 13% of consumers surveyed by SOTI agreed retailers are providing accurate information about which items are currently in stock. One could speculate this means consumers feel that 87% of retailers aren’t doing something right or don’t know what is happening with their inventory. Retailers who provide accurate information on merchandise availability will stand out from the competition.

Shoppers Know About Supply Chain Shortages, But It’s Not Their Problem

The shortages in the supply chain have greatly impacted businesses and consumers in every

Technology remains the key to delivering these expectations – though they need to be centralised. From different systems, devices and locations, any business technologies must talk to each other and experience the highest possible levels of uptime. When they don’t, retailers are unaware of what’s happening in the supply chain, and that is when customers get frustrated.

Whether it’s developing and deploying apps, securing sensitive data, remotely resolving device issues or managing Internet of Things (IoT) enabled devices, retailers have an obligation to provide the highest level of customer service to thrive through the ongoing period of supply chain disruption. Wherever retailers can make investments that alleviate shopping pain points, they will keep customers happy and reap the benefits. ●

For more information, visit: soti.net

It doesn’t have to be only larger companies revolutionising the retail world – any company can build processes or products to improve the buyer’s experience.

Supply Chain Employers on Probation

WRITTEN BY SUPPLY CHAIN INSIGHTS

Staff turnover and shortages have put supply chain workers in the box seat, with new research showing Australia's flexible workers are putting new employers on probation. Workers now assess if a company meets their own expectations in the first three months of employment before committing to working with them over the longer term.

This adds extra pressure to industries such as transport and logistics, which, according to Australian Industry Standards, have faced increasing labour shortages for many years, which intensified during the pandemic. Additionally, it found that the average workforce member age of 45 is higher than in other industries. This is projected to create a potential workforce crisis within the next 10-15 years when older workers retire, yet the workforce needs to increase from 574,080 in 2021 to an estimated 600,648 by 2026.

A survey of 500 Australian part-time (or shiftbased, roster-driven) workers undertaken by Humanforce, a provider of intelligent workforce management and payroll solutions, found that 87% of flexible workers, including supply chain employees, are assessing new employers during their traditional probationary period and 78% will leave a new employer within their first three months of employment if their expectations are not met.

"In a hiring market that favours employees, months of work because their expectations weren't met.

78% of workers would leave a new employer within three months if expectations are not met.

"First impressions matter. How a new employee is onboarded, trained and welcomed into a new working environment directly impacts their desire to work with a company over the long term. For businesses that don't get this right, the consequences are significant," said Pyne.

"Not being able to attract and retain staff can disrupt supply chain business operations and impact their ability to service customers and simply meet demand.'

"In a competitive hiring environment, organisations must do more to position themselves as an employer of choice and offer compelling reasons for workers to turn up for shifts."

While supply chain businesses are currently challenged to do more to entice workers, there are positive signs that employees want to commit to employers for long-term work, with 52% of respondents saying that the average length of time they hope to stay with a new employer was three years or more.

Research showed that organisations should offer new employees ongoing management support and in-depth training to ensure workers feel comfortable and motivated to work for a business long-term,. More than half (56%) of respondents also highlighted that they desired high levels of flexibility around the shifts and hours they work for an employer.

"Advanced workforce management solutions can facilitate a flexible work environment for employees through automating shift management, onboarding, training, and leave management. In a part-time, casual or shift worker environment, supply chain businesses can enable their staff to work in a way that suits their needs by setting parameters around staffing requirements in their workforce management solution and allowing team members to swap and bid for shifts and set their availability, autonomously,” said Pyne. ●

For more information visit: humanforce.com.au

“We have seen otherwise successful supply chain businesses unable to keep up with demand at various points throughout the last year due to staff shortages.”

“To retain top-quality staff, supply chain employers need to understand that work often sits alongside important life and family commitments, and workers value systems that simplify their lives.”

Look out for the next issue

For all of your latest supply chain industry news, be sure to join our community on LinkedIn

Look out for the next edition of Supply Chain Insights, where we will be taking a detailed look at the issue of “Supply Chain Agility in Uncertain Times”

As the world emerges from the mass disruption caused by the pandemic and other factors, what lessons have been learnt in relation to the need for supply chain agility? How can

organisations make their supply chains more agile, what is possible and how can it benefit the customer experience to have agility built into your logistics operations?

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

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