Supply Chain Insights | Issue Three

SupplyChainInsights News, Trends & Technology for APAC Supply Chain Leaders

Issue Three

November 2021

Supply chain and the transition to net-zero

Learn how Manhattan Associates is helping Daikin drive warehouse operations

Contents

Welcome

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

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

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

In this edition, our features editor Mel Stark looks at the issue of “Supply chain and the transition to net-zero,” focusing on the opportunities and challenges around the pursuit of end-to-end sustainability for Australian businesses. We also discuss greener delivery options for consumers, reducing the carbon footprint of transportation and how efficiency is the key to T&L sustainability.

We take a look at how global air conditioning giant Daikin is enhancing its supply chain visibility and warehouse

operations with Manhattan Associates, how Munro Footwear Group secures an automated $50 million facility to support booming sales, Bastian Consulting advises local supply chain organisations how to prepare for the ‘great resignation’ and Zebra Technologies asks how and why you should use eco-friendly printing supplies in your business?

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

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

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Contents

In This Issue

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The Latest Insights

Global Air Conditioning Giant Daikin Goes Live with Manhattan SCALE at New Sydney DC

How and Why you Should Use Eco-friendly Printing Supplies in your Business

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

Industry Update

Industry Update

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Efficient Returns Management Benefits the Customer, Retailer, and Environment

Thinking Big with Micro-fulfilment

News

9 The Road Towards a Greener Retail Supply Chain Analysis

12 Demand for Green Warehouses on the rise in New Zealand Industry Update

Industry Update

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Supply Chain and the Transition to Net-Zero

Analysis

Feature

21 eCommerce Boom Calls for More Sustainable Supply Chains in Southeast Asia

27 Technology Trends Paving the Way for a Greener T&L Industry

Industry Update

31 Bastian Consulting on How to Prepare for the Great Resignation Analysis

Analysis

Analysis

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News

News & Insights Imperfect Foods Evolves Distribution Network with Manhattan Associates Imperfect Foods, the leading online grocer on a mission to eliminate food waste, has selected Manhattan Active® Warehouse Management to modernise its distribution operations and support its rapid and ongoing growth.

Founded in 2015 with a mission to eliminate food waste and build a better food system for everyone, Imperfect Foods has rapidly grown into a business that serves hundreds of thousands of customers. The company reached a point where it needed a warehouse management system (WMS) capable of improving inventory visibility, decreasing operational costs and providing real-time metrics and reporting. With such rapid growth, Imperfect Foods also needed a solution that could scale with the business.

After a rigorous selection process, Imperfect Foods selected Manhattan’s market leading WMS, Manhattan Active Warehouse Management. Designed to unify every aspect of distribution, Manhattan

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Active WM is the industry’s most robust solution with continuous access to new capabilities. As the first cloud-native, enterprise-class WMS, its advanced architecture will provide Imperfect Foods with the scalability it requires.

“Imperfect Foods has experienced incredible growth since first opening our doors six years ago,” said Tyrell Childs, vice president of operations at Imperfect Foods.

“When we made the decision to begin our search for a WMS, we knew we would need the best solution on the market with the limitless ability to grow rapidly with us, which is what led us to Manhattan’s WMS.” “We are proud to partner with such an innovative and environmentally friendly

organisation,” said Raghav Sibal, managing director, ANZ at Manhattan Associates.

“Having recently announced its pledge to become a net-zero carbon operation by 2030, Imperfect Foods will benefit from the many advanced features that improve supply chain sustainability found in Manhattan Active® WM. We look forward to helping Imperfect Foods take this important initiative and its overall business success to the next level.” ●

For more information, click here.

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News

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

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

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

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

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

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

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

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

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

“This new facility will have one of the largest AMR goods-to-person deployments in Australia and is an exciting milestone for Munro. We have had a long-term partnership with Munro and through that, we’re able to comprehensively understand their business, design an optimised operating solution and procure the automation and property requirement. Munro has gone through a major boost in sales from the recent retail explosion, so our team has designed this new facility to flexibly support Munro’s dynamic growth from both in-store and online sales,” said Sam Dellios, director at TMX. The site is expected to be operational in the second half of 2022. ●

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News

Zebra Technologies Completes Acquisition of antuit.ai Zebra Technologies, an innovator at the front line of business with solutions and partners that deliver a performance edge, has completed its acquisition of antuit.ai, a provider of artificial intelligence (AI)-powered Software-as-a-Service (SaaS) solutions specific to forecasting and merchandising for the retail and CPG industries.

Antuit.ai, owned by a consortium led by Goldman Sachs Asset Management, utilises AI and machine learning algorithms to ensure its customers have the right product in the right place, at the right time, at the right price based on the current state of the supply chain, store inventory, and consumer demand. Incorporating antuit.ai’s AIpowered demand forecasting solution into Zebra’s SaaS portfolio will enable retailers and consumer products companies to combine planning and execution to optimise margins and drive revenue growth.

“Through its synergies with our retail store execution portfolio, the acquisition of antuit.ai will further drive our ability to bring the power of AI to our customers, and meet the demands of today’s consumer,” said Anders Gustafsson, chief executive officer at Zebra Technologies.

“It will also enable us to offer our customers in the CPG industry an analytics, AI and automation solution that supports more efficient planning and operations with greater visibility across the supply chain. We are excited to welcome the antuit.ai team to the Zebra family.” ●

The broadcaster held a conversation with Raghav Sibal from Manhattan Associates, discussing consumer expectations and what businesses can be doing to ensure

their transport and logistics operations are running efficiently and sustainably. ●

Sustainability in the Retail Supply Chain - ticker NEWS Interview

Watch the interview here.

International business and technology news streaming network, ticker NEWS, recently took an in-depth look at sustainability in the retail supply chain.

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News

Google Cloud Brings End-toEnd Visibility to Supply Chains with New Supply Chain Twin Solution Google Cloud has launched Supply Chain Twin, a purpose-built industry solution that lets companies build a digital twin (a virtual representation of their physical supply chain) by orchestrating data from disparate sources to get a more complete view of suppliers, inventories, and other information.

The majority of companies do not have complete visibility of their supply chains, resulting in retail stock outs, aging manufacturing inventory, or weatherrelated disruptions. In 2020, out-ofstock items alone cost the retail industry an estimated $1.14 trillion. The past yearand-a-half of supply chain disruptions related to COVID-19 has further proven the need for more up-to-date insights into operations, inventory levels, and more.

"Siloed and incomplete data is limiting the visibility companies have into their supply chains." said Hans Thalbauer, Managing Director, Supply Chain & Logistics Solutions, Google Cloud. "The Supply Chain Twin

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enables customers to gain deeper insights into their operations, helping them optimise supply chain functions - from sourcing and planning, to distribution and logistics."

With Supply Chain Twin, companies can bring together data from multiple sources, all while requiring less partner integration time than traditional API-based integration.

Some customers have seen a 95% reduction in analytics processing time, with times for some dropping from 2.5 hours down to eight minutes.

"At Renault, we are innovating on how we run efficient supply chains. Improving visibility to inventory levels across our network is a key initiative," said JeanFrançois Salles, Supply Chain Global Vice President at Renault Group. "By aggregating inventory data from our suppliers and leveraging Google Cloud's strength in

organising and orchestrating data, with solutions like the Supply Chain Twin we expect to achieve a holistic view. We aim to work with Google tools to manage both stock, improve forecasting, and eventually optimise our fulfillment."

Data types supported in Supply Chain Twin include: • Enterprise business systems: Better understand operations by integrating information such as locations, products, orders, and inventory from ERPs and other internal systems.

• Supplier and partner systems: Gain a more holistic view across businesses by integrating data from suppliers, such as stock and inventory levels, and partners, such as material transportation status.

• Public sources: Understand your supply chain in the context of the broader environment by connecting contextual data from public sources, such as weather, risk, or sustainability-related data, including public datasets from Google.

"End-to-end visibility across the entire supply chain is a top priority for supply chain professionals to optimise planning, real-time decision making and monitoring," said Simon Ellis, Program Vice President at IDC. "Google Cloud's approach to a digital twin of the supply chain spans internal, external, and partner data networks without complex integrations. This approach can help organisations to better plan, monitor, collaborate and respond at scale." ●

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

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

E: enquiries@tmx.global 7

News

eStore Logistics Opens Autonomous Sydney Fulfilment Centre eCommerce fulfilment provider, eStore Logistics, has opened its eighth fulfilment centre taking its total warehousing footprint to around 120,000sqm across Australia. The new fulfillment centre is located in Bankstown, Sydney and is the organisations second largest fulfilment centre overall at 19,310 sqm.

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

“The world has changed a lot over the last 18 months and ecommerce has been completely transformed. Consumers are demanding faster and more flexible deliveries, and we’ve been scaling our business to meet the growing demand, by

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providing our customers with state of the art fulfilment and warehousing solutions,” said eStore Logistics Founder & Managing Director, Leigh Williams.

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

This is eStore Logistics’ fourth fulfilment centre featuring the AI powered AMR picking technology and increases the fleet to over 330 robots. Utilising AMR technology since March 2020, eStore has been providing

Victorian retailers with same day fulfilment for ecommerce orders placed as late as 4pm and same day delivery to their customers. eStore is now expanding this service offering to retailers which hold their stock in NSW. The distribution centre has been designed to cater for a wide variety of products that are sold online. It will service retailers that have large bulky products such as furniture and appliances, wine retailers, and retailers that sell products which are suited to AMR including fashion and apparel, health and beauty, books and CD/DVD’s, sports and hobbies.

The new development comes at a unique time for the Australian ecommerce sector as we emerge from a prolonged period of lockdowns across the country which have added to the growing demand for ecommerce. eStore Logistics partnered with specialist supply chain and property consultancy TMX on securing this new facility. This is the second facility TMX have sourced for eStore in the last two years in Western Sydney to accommodate eStore’s significant growth.

The fulfilment centre will be fully operational from November 2021 and create up to 120 jobs. ● For more information, please click here.

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Analysis

The Road Towards a Greener Retail Supply Chain

BY RAGHAV SIBAL, MANAGING DIRECTOR, ANZ, MANHATTAN ASSOCIATES

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

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

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

The fast-shipping ultimatum With the eCommerce boom now fuelling the retail industry, quick delivery and shipping has become the biggest force against supply chain sustainability. The emergence of two-day shipping for “free” became mainstream in 2005, and with the release of Amazon Prime, and it has since started a chain reaction.

For these major players, customers who paid an

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annual membership would be guaranteed two-day delivery for every order at no cost. This removal of shipping costs inadvertently hid the impact of the change in delivery timeframes from the customer, and as a result, behaviour began to change, as did expectations.

Fast forward about 10 years, and the delivery expectations jumped to one-day delivery and included free returns, still without any real impact felt by the consumer. Today, half of all consumers expect not to be charged for “standard” two-day delivery, and 62% say free delivery is their top consideration, according to new research conducted by Manhattan Associates. However, in that same survey, 70% said they are prepared to pay extra for speed and convenience, such as one-hour, same day or Sunday delivery.

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

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

Then there is the resource capacity crunch — there simply are not enough trucks and drivers to deliver all of these packages and get them where they need to be on time. In fact, industry professionals rate the issue as the biggest challenge for supply chains in 2019. This has led to the rise of the gig economy, leveraging services like Uber and other courier-on-demand businesses, to fill the gap. But filling the need for capacity causes even more vehicles to be on the road, which leads to more traffic and more idling and even more carbon emissions.

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

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

Likewise, as online shopping rates remain high due to the impacts of COVID-19, sustainability is more important to Australian consumers than ever before, with 63% stating they would pay extra for a delivery service that was more environmentallyfriendly. New research from Manhattan Associates, Shippit and Greener also revealed;

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60% of Australian consumers are open to receiving a delivery at a later date if it meant that it was delivered more sustainably.

Due to the ongoing impacts of the pandemic and its convenience, home delivery is now the preferred delivery option for 69% of Australian online shoppers.

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

Importantly, our research has also revealed that over half (60%) of Australian consumers indicated they often receive their online order in multiple shipments, and 81% of them said that they think this is an inefficient and unsustainable way of delivering goods. In fact, the same number (81%) also said they would prefer to receive their order at a later date if it meant that it would arrive in one consolidated delivery. A further 64% of consumers stated that they would be even more motivated to accept a longer delivery wait time - with all purchases consolidated into one package - if the delivery fee was free or discounted.

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

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

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Analysis

and drive environmentally aware consumers to other retailers who are taking steps to make their delivery services greener.

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

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

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

Likewise, Order Management Systems (OMS) are critical to helping minimise split shipments and intelligently source from all inventories. This includes alternate store pickup locations like lockers to minimise travel distances, while inventory

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optimisation technology ensures that supply is more accurately placed where the demand will be, to reduce the amount of store transfers or unexpected replenishments. With innovations like advanced OMS, retailers are also able to navigate disruptions caused by COVID-19 by reviewing the rules of stock allocation, temporarily giving priority to in-store stock over warehouse stock, thus, freeing up any trapped inventory confined within closed stores. This is a great advantage for retailers whose physical stores have closed for lockdowns or have their business operations disrupted for other reasons.

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

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

In addition to using store level inventory to ship orders to a customer’s home, it can also be deployed for click-and-collect purchases. With new fulfilment options enabled by the store, consumers can click, collect, and return goods at their own convenience, eliminating courier runs and lessening CO2 in the supply chain. ●

For more information on how technology can help improve the sustainability of your supply chain, please click here.

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Industry Updates

Demand for Green Warehouses on the rise in New Zealand SAM SMITH DIRECTOR PROPERTY, TMX

New Zealand’s industrial property market has seen a steep rise in the demand for green warehouses, specifically warehousing that incorporates environmental initiatives.

Given the built environment in New Zealand is responsible for about 20 per cent of New Zealand's carbon emissions, the focus on the environmental footprint of industrial property is likely to intensify in the coming years. Developers and occupiers are already jumping on board having recognised that alongside environmental benefits, financial benefits are also on offer.

The demand is being driven from all different directions. There is greater consumer awareness about supply chain sustainability and heightened expectations on sustainability commitments, as well as an increasing recognition of the importance of corporate governance and social responsibility. Similarly, there is also greater awareness amongst developers that green warehousing can increase the value of their asset. For occupiers, incorporating environmental initiatives can bring down operational costs, which is a big drawcard especially as sites adopt automation and require more electricity.

There’s also an increasing focus from the Government who have committed New Zealand to a net-zero carbon emissions economy by 2050.

In the recently released Draft New Zealand Infrastructure Strategy, one of the objectives of the strategy is to meet this target through greater development of clean energy and reducing the carbon emissions

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from infrastructure. Businesses are also forging ahead and already making significant headway in reducing their emissions. The Goodman Group’s progress in this area is a prime example of industry action, the Group recently announced that it has achieved carbon neutrality for its global operations four years ahead of its 2025 target.

The Green Star rating, the current industry standard for sustainable design and build, is becoming increasingly sought after by occupiers. Developers are quickly catching on, with a large number of 5 and 6 Green Star buildings entering the market or in development in New Zealand. There are a range of initiatives companies can introduce to meet the standards, and in the New Zealand market we are increasingly seeing industrial property developers install solar panels, water harvesting facilities and electric vehicle chargers amongst other environmental initiatives.

The energy rating equivalent, NabersNZ, is also being rapidly adopted. For example, the New Zealand Government has decided that new leases for its departments and agencies in buildings more than 2000 sqm in size will only be taken up if that building has a minimum 4 Star NabersNZ energy efficiency.

Many in the private sector are following suit.

Companies are becoming increasingly conscious of their sector’s carbon emissions and the need to start working towards emissions reduction targets. Green warehousing initiatives provide a great opportunity for organisations to reduce their emissions, promote sustainable practices, while also obtaining commercial benefits as well as meeting customer demands for sustainably sourced products.

Demand for green warehouses is set to grow as companies realise the potential of harnessing environmental initiatives to increase their asset value and save on operational costs, while contributing towards a reduction of carbon emissions.

This ability to yield greater financial savings from these sustainable design elements will see more companies adopting these initiatives, providing environmental and financial benefits. As more businesses realise these benefits, green warehouses will become the norm. ● For more information on how TMX can help drive more sustainable outcomes in your industrial facilities, visit: www.tmx.global

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You need the right technology to pick, pack and ship goods efficiently and sustainably • Optimise load volume and delivery routes • Improve traceability with sensing technology • Extend device lifecycles and reduce repairs • Transition to paperless processes • Seamless workflows and increased staff satisfaction • Unparalleled visibility into inventory, assets and people

BUILD AN OPTIMISED, SUSTAINBLE SUPPLY CHAIN WITH ZEBRA

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Industry Updates

Global Air Conditioning Giant Daikin Goes Live with Manhattan SCALE at New Sydney DC The world’s leading air conditioning manufacturer, Daikin, has adopted Manhattan Associates’ Manhattan SCALE warehouse management solution (WMS) at its new Daikin Park distribution centre (DC) in Sydney to enhance supply chain visibility and drive warehouse operations.

Manhattan SCALE serves as an allencompassing automated warehouse solution to optimise manufacturing, fulfilment, and dispatch operations at Daikin Park – the largest air conditioning DC in Australia. By offering end-to-end visibility and flexible control over DC operations, the new solution allows Daikin to better manage and expand operations to meet the huge growth the company has experienced in Australia over recent years.

“By upgrading the Daikin Park facility with Manhattan SCALE, we are now able to take back full control of our operations by having

better access to warehouse, transport & logistics and customer data. During a highpressure time, like the one we are currently experiencing with the pandemic, this information has been extremely valuable.

Having this kind of visibility allows us to make better business decisions to improve efficiencies and customer experiences,” said Michael Trad, head of SCM & IT, ANZ at Daikin.

“Since going live with the Manhattan system, we are able to track our products at every point throughout the supply chain.

This enhancement has significantly boosted the level of information we can share with our delivery drivers and customers, so that they are kept informed about all aspects of their orders.”

As part of Daikin’s wider business strategy, the company recently consolidated six distribution centres into the new

33,000-square-metre Daikin Park facility, making it a central hub to house the company’s raw materials, spare parts, finished goods and manufacturing supplies. Daikin Park, which has achieved massive cost savings for the company, operates with an outbound volume of 9,000 orders per day with an inventory capacity of over 40 thousand cubic metres.

“The Manhattan SCALE solution is able to plan out in advance how many pallets are going outbound, where they are being delivered and in what order, which allows Daikin to load its trucks much more effectively,” said Raghav Sibal, managing director, ANZ at Manhattan Associates.

“By having access to real-time data, such as driver and delivery information, Daikin now has the ability to optimise the delivery journey and offer very precise delivery status information to its customers.”

Daikin’s decision to upgrade Daikin Park with the Manhattan solution was part of its business plan to move away from relying on a 3PL and to bring its WMS in-house. With the Manhattan SCALE WMS now at the core of the new DC, Daikin has gained the visibility needed to evaluate, manage, and innovate operations to make big improvements for the business and its customers.

“To ensure the solution was tailored to fit Daikin’s unique business needs, we collaborated closely with the company to maximise the level of flexibility and configurability the solution was able to achieve, and to make sure staff were trained up and ready to transition into using the new system,” said Rahul Pillai, senior principal consultant at Manhattan Associates.

“Overall, the project has been a big success and we are very pleased to have helped Daikin achieve its goal of operating selfsufficiently.” ● For more information on how Manhattan Associates can help drive your warehouse operations, please visit: www.manh.com/en-au

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Feature

Supply Chain and the Transition to Net-Zero SUPPLY CHAIN INSIGHTS SUSTAINABILITY FEATURE

As sustainability moves further up the supply chain agenda, Supply Chain Insights finds out how organisations can reduce their carbon footprint while increasing profits, efficiency and customer service.

According to a report by the Government’s Climate Change Authority, the transport sector accounts for 16% of Australia’s greenhouse gas emissions, which makes the sector the third largest source of greenhouse gas emissions in Australia. It’s also rising at the highest rate of any other sector in Australia.

Greenhouse gas emissions from transport come primarily from fossil fuels combusted in vehicles.

Personal vehicles equate for around half of these emissions, with the remaining produced by freight and logistics operations nationwide.

It’s also predicted that transport emissions are set to increase in the period to 2030, as demand continues to outpace efficiency improvements.

This has been exasperated by the dramatic shift to online shopping, as a result of almost two years of lockdowns and physical retail closures due to the coronavirus pandemic.

Earlier this month, world leaders gathered in

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Glasgow, Scotland for the United Nation’s COP26 conference to set out their plans for reducing carbon emissions and creating a more sustainable future.

One of the most significant climate change events to take place since the signing of the Paris Agreement in 2015, COP26 saw leaders from every corner of the world commit to making the world a more sustainable place in the next decade. Those in attendance included Australian Prime Minister Scott Morrison – who committed to targeting net-zero emissions by 2050 in Australia.

While climate change and sustainability has been high on the political agenda for some time, the shift to a more sustainable future is also being driven by consumer demand and behaviour and this is having a huge impact on supply chain and retail operations.

If Australia is to meet its net-zero emissions target, then supply chain has a significant role to play in creating a more sustainable future.

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"Everything is on the table right now and it’s a fascinating time to be looking at retail & tech" SUPPLY CHAIN INSIGHTS

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Feature

“Cost, customer satisfaction and sustainability all get tackled by making smarter decisions with the right tools and technology,” RAGHAV SIBAL, MANAGING DIRECTOR, ANZ, MANHATTAN ASSOCIATES

The need to act now A new research report ‘Sustainability in the Australian Retail Supply Chain’ commissioned

by Manhattan Associates, Shippit and Greener – in partnership with the National Retail Association and NORA, revealed 60% of Australian consumers are open to receiving a delivery at a later date if it meant it was delivered more sustainably.

According to Raghav Sibal, managing director, ANZ at Manhattan Associates, consumers want to see a clear message from the companies they shop with on what they are doing to improve sustainability.

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

Similarly, Mark Delaney, thought leader & retail strategist at Zebra Technologies says the impact of the pandemic has shifted consumer priorities away

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from price and speed, to sustainability and safety.

“If it wasn’t for the pandemic, I don’t think we would have seen this shift. But with habits forever changed, consumers are increasingly focused on the sustainability of their order. Furthermore, the global pandemic has made consumers more concerned of the safety of associates and customers,” he says.

While sustainability is impacting most organisations, the focus on sustainability in supply chain is driven by an increase in innovation and experimentation since the onset of the pandemic.

“We’re seeing proofs of concepts that would usually take a year to 18 months now happening in 4 to 6 weeks.”

“There is an incredible wave of innovation happening right now and this is driving advances in sustainability,” says Mark Jamie Dixon, director at TMX says one positive to

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“There really is an incredible wave of innovation happening right now and this is driving advances in sustainability” MARK DELANEY, THOUGHT LEADER & RETAIL STRATEGIST, ZEBRA TECHNOLOGIES

come out of the pandemic is that everyone realised how important supply chain is, and with that came a drive to increase efficiencies and improve operations.

“A lot of the work we’re doing when optimising networks and better utilising resources, network footprint and assets has a significant flow on effect in reducing carbon emissions,” says Jamie.

But it’s not just consumers who are putting the pressure on retailers and logistics providers to improve sustainability and reduce carbon emissions, it’s investors too.

“What we’re going to see in the very near future is investors making a requirement that a company is committed to net-zero emissions. They are starting to ask, are you a good corporate citizen?” says Jamie.

With pressure from consumers and investors alike, retailers and logistics providers are faced with the urgent issue of improving sustainability in their supply chains.

The pursuit of true end-to-end sustainability As more organisations focus on improving sustainability, organisations are asking how they can better report on, as well as better control their assets.

But it’s not just about improving sustainability across an organisation’s own assets, but also any partner organisations – such as 3PLs. “Any desire to improve sustainability has to also take into consideration, and improve, Scope 3 emissions. This includes any outsourcing of logistics or the production of raw materials,” says Jamie.

“If you’re a large FMCG business and you outsource to a 3PL, all of those emissions are now your total responsibility.

Just like the Chain of Responsibility includes safety and quality, it also includes sustainability.”

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With the right tools and systems, retailers can calculate what their sustainability requirements are at both a strategic level as well as a day-to-day operation level. “This could be fuel type, vehicle type, route, transport mode and more,” says Jamie.

This shift to a more sustainable operation is having a significant impact on 3PL operations, with retailers now looking to include sustainability requirements in contracts and service agreements.

“Many larger retailers will no longer engage with a transport company who isn’t committed to reducing emissions,” warns Jamie.

Australia’s tyranny of distance With a large reliance on road freight and the challenge of long distances and a geographically spread population, Australia has its own unique challenges when it comes to improving sustainability in the supply chain.

“Retail organisations in Australia have to deal with the fact that they need to create more points of distribution closer to the population, this is very difficult for a retail operation that utilises a centralised distribution model,” says Manhattan’s Raghav.

However, while Australia’s geography can be a disadvantage, Raghav says larger retailers in Australia have an established store network that can be utilised to fulfil eCommerce orders in a more sustainable way.

Major retailers such as Kmart have already attempted this pivot during COVID-19 lockdowns, and he says this will be a regular feature as organisations attempt to improve sustainability in eCommerce.

Furthermore, technology has a huge role to play.

“Cost, customer satisfaction and sustainability all get tackled by making smarter decisions with the right tools and technology,” says Raghav.

Jamie emphasises the importance of a true digital supply chain to ensure full visibility and control of inventory. “It’s about optimising your assets, spreading driver hours, ensuring vehicles are full, minimising split orders – all of these things not only improve sustainability but efficiency as well.”

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Feature

Consumers are not prepared to just accept the convenience of delivery at the cost of the environment.

SUPPLY CHAIN INSIGHTS

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“What we’re going to see in the very near future is investors making a requirement that a company is committed to net-zero emissions. They are starting to ask, are you a good corporate citizen?”

JAMIE DIXON, DIRECTOR, TMX

Grasping the opportunity According to Mark at Zebra Technologies, we’re set to see some radical innovation in the route to net-zero.

“I’ve seen companies start to explore the use of drones in remote areas, which could be relevant in Australia. They are very energy efficient and could be a great solution to deliver small packages. Everything is on the table right now and it’s a fascinating time to be looking at retail and tech,” says Mark.

Jamie also references a trend that is starting to take off in Asia in response to the sustainable impact of returns logistics – the consumer-to-consumer supply chain.

“What we might start to see is instead of returning products to a retailer, consumers might reuse and recycle the goods themselves through an online marketplace.

"Consumers with a sustainability focus will start to ask if there is a smarter way to return goods than sending them halfway across the country if someone in the same suburb can utilise them,” says Jamie.

For Raghav, utilising the right tech to pick, pack and ship goods and to optimise routes and transport operations is critical when looking to more sustainable modes of transport. “While there is a trade off with slower, more sustainable modes of transport, if you have the right technology in place, you can ensure you are planning efficiently and make sure you continue to deliver a great experience to your customers regardless of the mode of transport you choose.”

Whichever route organisations take to improving sustainability in their supply chain, Zebra’s Mark says one thing is for certain: “to attract the future shopper, investor or employee, your messaging and commitment to sustainable practices will need to be very clear.” ●

SUPPLY CHAIN INSIGHTS

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Analysis

eCommerce Boom Calls for More Sustainable Supply Chains in Southeast Asia WRITTEN BY JAMES CHRISTOPHER PRESIDENT – ASIA, TMX

The COVID-19 pandemic has triggered a dramatic eCommerce boom, altering the way companies do business. It has also changed consumer buying experiences, shifting the retail landscape.

As retailers benefit from the significant increase in eCommerce orders – Southeast Asia saw more than 60% increase in gross merchandise value (GMV) to US$62 billion in just one year in 2020 – more needs to be done to ensure the sustainability of supply chains.

In today’s world where consumers are becoming increasingly environmentally and socially conscious, the transport and logistics sector needs to focus on operating sustainably. This is not just for corporate governance and operational savings, but to establish their social license to operate and become more environmentally conscious.

As an example, the spike in door-to-door deliveries amidst social distancing measures has been taxing on last-mile delivery vehicles. This is evident in the rise of emissions from last-mile services, which are projected to further increase by more than 30 percent in 100 cities globally.

Unfortunately, as companies focus on getting goods to consumers quickly, this means delivery trucks prioritise speed over efficiency, often running below full capacity.

SUPPLY CHAIN INSIGHTS

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Concerns from consumers Consumer focus on the environmental and social impact of the companies and businesses they buy from has been around for some time, but more people are becoming aware.

Today, almost half of Southeast Asia consumers expect retailers to eliminate plastic bags and plastic wrapping for perishable items, while slightly over half expect businesses to be accountable for their environmental impact.

Meanwhile, research has found that companies that successfully match customers’ sustainability expectations are rewarded with customer loyalty and an increase in revenue growth. This means that businesses must have visibility in their supply chains to trace raw material inputs to last-mile delivery, further underscoring the need for sustainable supply chains.

Road to resilience Those who have adapted their business and operating models and created more agile supply chains to meet the boom in eCommerce, have found themselves ahead of the race in a changing market.

The adoption of technology in transport and logistics has evolved over the past decade, but COVID-19 was the catalyst that pushed for dramatic and rapid change in a short window of time.

Many operators have taken up route-optimisation to improve customer experience and reduce carbon footprint. Others have considered the type of fuel they use. eCommerce has put immense pressure on lastmile logistics with customers placed as top priority.

But what happens when customers don’t quite understand the impact of cheap and fast deliveries on the sustainability of supply chains?

As operators have raced to deliver huge order volumes over various online shopping festivals, the question remains whether cost to serve is being covered. Those who can optimise their costs are more likely to reduce their carbon footprint, as well as increasing margins.

But if you’re overservicing and running deliveries on half empty trucks, then a levy such as road user charge or carbon charge, might be necessary to change business processes and consumer behaviours.

The big challenge Senior supply chain executives face sustainability issues daily as they look to ensure the organisation’s

SUPPLY CHAIN INSIGHTS

activities are aligned to the expectation of shareholders, including internal and external stakeholders.

Having the capability and metrics in place to identify and communicate social, environmental, and economic achievements is paramount to embedding sustainability thinking within an organisation.

Supply chain strategies should enable businesses to exceed sustainability ambitions across logistics functions. At TMX, we have designed solutions that are practical and adaptable for different companies across Asia Pacific to meet environmental goals and targets in line with customer, shareholder and community values and expectations. Some organisations have also the added importance of complying with legislative requirements. Setting the right targets is crucial, including making emissions a critical key performance indicator for companies.

The new normal The pandemic has forced businesses to throw out their old manual in order to survive – and ultimately thrive – in these uncertain times. As companies are forced to relook at the way they operate, the opportunity is ripe for factoring in sustainability in all that they do. eCommerce is here to stay. As such,

Leading companies need to crack the code around supply chain efficiencies, which will simultaneously reap environmental gains.

This could include understanding the cost to serve or exploring the feasibility of multiple smaller warehouses or fulfilment centres in lieu of one large one, to ensure orders arrive on time.

Industrial occupiers across Southeast Asia have been incorporating sustainable practices in their facilities for a while now. Many have also been investing in solar panels and water recycling plants among other environmental-friendly initiatives in industrial property, which is ultimately reducing carbon emissions.

Tenants are also now seeking sites that are as a minimum a Leadership in Energy and Environmental Design (LEED) Gold or Platinum standard certified or Green Mark Platinum rated, along with a requirement for LED lighting and efficient ventilation system. This demand is set to continue driving green initiatives in the industrial property market.

COVID-19 has propelled the industry forward by five years, having turbocharged online retail and forced businesses to pivot in order to stay relevant.

Now more than ever, is the time to take charge of sustainable supply chains. ● TMX is Asia-Pacific’s leading business transformation consultancy specialising in digital and supply chain solutions.

Please visit: www.tmx.global/

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Manhattan Active Warehouse Management.

Cloud-native and built on 100% microservices, it redefines what a WMS can do, delivering exponential improvements.

Australia’s Most Awarded Warehouse Management System and a 13 Time Leader1 in Gartner’s Magic Quadrant for Warehouse Management Systems.

SUPPLY CHAIN INSIGHTS

23

Industry Updates

How and Why you Should Use Eco-friendly Printing Supplies in your Business WRITTEN BY ROYSTON PHUA SUPPLY CHAIN PRACTICE LEAD FOR APAC REGION, ZEBRA TECHNOLOGIES

Most printing-related supplies are consumables, including labels and RFID inlays. They’re intended to be used in high quantities and usually reach their end-oflife after a single use. With such inherently short lifespans, these consumables present a great environmental opportunity for businesses to reduce, reuse and recycle.

2. Reuse

3. Recycle

When it comes to labels, reuse is not about reusing the label itself but rather the item to which it is affixed.

Barcoded labels are affixed to all sorts of things, including food service bins. While the bins themselves are reusable (after sanitation, of course), the labels are not. Label removal can be time-consuming and difficult. If labels are not properly removed, they can easily clog drains – and this can be costly.

When it comes to choosing the right label, take a look at how your labelled items are entering and exiting the market. If labelled items are received by another facility within your business, you can maintain control of the disposal of these items.

If labelled items are received by consumers, then you don’t have control over their disposal. In this case, it’s a good idea to purchase recyclable labels that inform the consumer that the item can be recycled, or if unavailable, at least consider using labels that are created from a recycled material.

Take a padded mailer for example.

Padded mailers are plastic-based envelopes typically labelled with non-polyethylene labels that must be cut out or peeled off by recipients if they wish to cleanly recycle.

The PolyE 4000D Label offered by Zebra, a direct thermal polyethylene label, allows consumers to easily recycle polyethylene bubble mailers because the label and the envelope are made of the same material.

Here are some of the ways that small supplies changes can make a huge impact today: 1. Reduce The first step of any business review should be to ensure that you are not disposing of labels unnecessarily.

One way to reduce waste is selecting printers that are compatible with linerless labels, and then only stocking linerless labels. More businesses are adopting linerless labels because of their environmental and safety advantages. For example, the lack of liner inherently reduces waste. Typically made with silicone, liners cannot be recycled nor burned.

As an added benefit, linerless labels like Zebra’s 8000D Linerless Label can be cut to any length to eliminate waste. Without the liner, the entire roll is available as a label, which means that the physical dimensions and weight of the roll itself are reduced. This subsequently reduces the number of boxes needed for shipping, which helps to reduce packaging waste and the carbon footprint resulting from delivery.

SUPPLY CHAIN INSIGHTS

The takeaway

Easily dispersible labels, like Zebra's 8000D Dissolvable Label, provide a more efficient means to removing disposable labels affixed to reusable items. They are made using a special paper face stock that breaks apart into paper fibres along with an adhesive that dissolves quickly under water.

Whether you’re reducing, reusing and/or recycling, every action you take to improve the environmental sustainability of your business adds up. If you’re concerned about the costs of switching to eco-friendly supplies, consider the financial consequences of not switching. Every reusable container disposed before its time due to a stubborn label, and every plumber called for a sink clogged with label remnants has an impact on your bottom line. Both businesses and consumers play a part in making the right choices for themselves and ultimately the environment, so make the choice to switch to more ecofriendly supplies today. ● Learn more about Zebra's eco-friendly supplies here.

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Analysis

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

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

Globally, customers now expect a smooth and easy returns process from all retailers.

Although returns don't have to be offered free of charge, it’s a big selling point if they are. The modern consumer frequently over-orders: an eye-watering 30% of online purchases are returned on average – a number that’s more than three times higher than the 9% return rate experienced by traditional brick-andmortar stores. One of the implications of this trend that cannot be ignored is environmental damage at the expense of convenience.

With the rise in global events, campaigns, and movements like Earth Day, it’s clear that the future of our planet is a concern for people across the world. So, even though consumers may be driving demand for convenient, hassle-free returns options, they also feel strongly about the effects of climate change, sustainability, pollution, and waste.

More informed than ever, they like to interact with businesses that demonstrate exemplary Corporate Social Responsibility (CSR). This is especially the case for millennials, of which 87% would be more loyal to a company that helps them contribute to social and environmental issues. With this in mind, retailers are facing a difficult balancing act: optimising the efficiency of reverse logistics and

SUPPLY CHAIN INSIGHTS

keeping the customer satisfied, whilst minimising impact on the planet. That is why it is so important to understand how supply chain visibility, intelligent loading/shipping and the use of RFID tracking and drop-off/collection networks can be utilised to achieve this balance.

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

Dealing with the collection of unwanted or damaged goods, and possibly sending a replacement, all adds to the carbon footprint of the retailer (and compensation claims), so getting it right the first time is critical. As such, it is extremely important to employ smart technology in the warehouse, which provides real-time data about customer interactions and enables you to honour cancelled orders, even if the request comes in at the last minute.

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

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In order to future-proof your operations, you need visibility into key load metrics, ensuring every load is space efficient.

sizes, for example). Once returned, barcodes, RFID technology, scanners and mobile computers can pull up product details to help assess a product’s suitability for resale before it is placed back in stock.

From an environmental perspective, this approach maximises reuse, recycling, or recirculation, ensures products are not simply binned or later lost in the system, and reduces unnecessary transportation.

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

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

SUPPLY CHAIN INSIGHTS

It will come as no surprise that a data-driven approach can provide incredibly smart solutions.

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

Once on the road, GPS, RFID, scanning, and camera technology provide real-time data on deliveries, including the last-mile delivery. Although this is nothing new, it is a key step in eliminating re-delivery attempts or claims of non-delivery (leading to unnecessary mileage, pollution, and reordering). This visibility is of interest to all supply chain stakeholders and shortening the delivery window is more convenient for customers too. Single collection/drop-off points for deliveries and returns like parcel shops, lockers and combined retail stores are proving to be efficient solutions across APAC. These single-point locations allow you to reduce delivery time and mileage through consolidated shipments/collections and could potentially end the common consumer issue of missed deliveries. Fleet management via route planning and optimisation ensures no journey is a wasted one and keeps the chain moving.

Imagine a concierge for a whole suburban area, not just for a residential block.

In Zebra’s recent study The Future of Fulfillment, 68% of global retailers ranked online returns as a key challenge – a challenge that is financial, logistical, and environmental. The eCommerce retailers that will thrive in the future are those who are environmentally conscious as well as customer focused. With millions of parcels in the supply chain, smart data-driven solutions from the point of order are the only way to keep pace with customer demands, as they currently offer the best way to facilitate end-to-end visibility and intelligent decision-making. ● Is it time you found the right technological partner to future-proof your returns process? Find out how Zebra can help boost efficiency and sustainability in your supply chain here.

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Analysis

Technology Trends Paving the Way for a Greener T&L Industry WRITTEN BY MICHAEL DYSON VP OF SALES, APAC, SOTI

It’s well known that the Transportation and Logistics (T&L) industry is a significant contributor to global and economic performance.

With much of our day-today activities dependent on the ability to trade and transport goods and services across the globe, the T&L sector has never been as important as it is today.

The trade-off, however, is that all this activity equates to a substantial contribution to greenhouse gas emissions, environmental degradation and climate change overall. As a result, there is now a growing push for T&L businesses to transform and integrate environmentally sound initiatives into operations, so they are better positioned for a more sustainable and resilient future. The key, T&L businesses need to proactively invest in the latest technology to streamline operations and match the high demand in a way that also works to reduce the carbon footprint.

There is now considerable pressure on the industry, and incentives from within it, to make the industry more environmentally sustainable. The roadfreight sector is responsible for over 24% of CO2

SUPPLY CHAIN INSIGHTS

emissions worldwide. If countries are to meet their commitments under the Paris Climate Agreement, they need the road-freight sector to become more sustainable. To meet these pressures, the sector must identify the current sustainability gaps and prioritise investments in technology that help to fill them.

If T&L businesses combine mobile and IoT technology with an integrated business-critical mobile strategy, they will undoubtably see not only gains in performance, but a more sustainable means of operating.

Better visibility makes for greener operations Over the past decade, sustainability has been a hot topic in the T&L industry with more businesses looking at the environmental benefits of new technology. From making operations more efficient to using more sustainable resources, being environmentally-conscious remains a core focus.

Something of particular interest within the industry is the use of Internet of Things (IoT) solutions such as telematics.

Telematics combines the use of Information Communications Technology (ICT) to monitor a wide range of information relating to an individual vehicle or an entire fleet. Telematics systems gather data including vehicle location, driver behaviour, engine diagnostics and vehicle activity, and visualise this data on software platforms that help fleet operators manage their resources.

The use of telematics is quickly growing in

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popularity due to the positive impact it has on operations. Not only do these IoT solutions work to streamline industry processes to save costs, they also allow businesses to easily comply with new regulations.

Aside from this, telematics offers many environmental benefits for T&L businesses wanting to reduce their carbon footprint by enabling operators to monitor their vehicle’s performance and save costs, reduce travel times and switch to more energy efficient fuel options.

With a multitude of other operational benefits, the tremendous potential telematics can have towards making the world a cleaner and safer environment goes far beyond just fleet owners, operators and drivers, but to the supply chain at large. The data collected through telematics is extremely valuable for identifying trends and making improvements to operations to better initiate sustainable practices.

Reducing the carbon footprint of transportation With the impacts of COVID-19 and the accelerated demand for T&L services, the pressures on the sector have been immense. However, it will be the businesses that choose to innovate their operations with technology designed to efficiently move goods in a smarter, more sustainable way that will see themselves remain competitive in a greener future.

Advanced solutions such as telematics and IoT technology work to support the reduction of carbon emissions and lead the industry into a greener future by optimising the overall flow of logistics, which naturally helps to reduce emissions. These technologies track vehicle and individual driver information to support improved vehicle performance and driver behaviour, thereby reducing the overall consumption of fuel and outward emissions.

With the integration of technology solutions, T&L businesses can not only improve sustainability standards from the get-go but make an evaluation on how to react to any other detrimental impacts current operations are having on the environment to make further, longer-term improvements.

Efficiency is the key to T&L sustainability In SOTI’s latest report on the T&L industry, 76% of Australian T&L businesses agree that mobile-first technology will play an important role in last-mile delivery over the next five years. A further 50% said that mobile-first technology used to increase the speed of the delivery process and improve the visibility for customers to track their orders will improve operational efficiencies significantly.

With the many advantages that come as a result of investing in and deploying technology, the most business-critical outcome from a T&L operator’s perspective is the improvements to productivity and efficiency. The use of technology, including mobilefirst technology, to automate operational tasks such as record keeping, toll paying and delivery logistics,

SUPPLY CHAIN INSIGHTS

for example, allow T&L drivers to operate in a more productive and efficient way. And while this is the priority for T&L businesses making investments in technology, another big motivation is becoming more sustainable.

The fact is technology investments that improve visibility, efficiencies, productivity and accuracy are also likely to increase a T&L business’ sustainability credentials. That’s because it means T&L drivers are completing tasks correctly the first-time round, and the business is making assessments and changes to operations such as using data insights to deliver more orders to the same place at the same time or calibrating quicker route options.

Transport modes have also seen several advances which work to proactively reduce carbon emissions.

From larger vehicles, aircrafts and vessels to the broadening use of automated guided vehicles, transport modes will continue to change in the future to address issues of efficiency and sustainability.

Larger means of transport are fast becoming a greener approach to transporting goods, with larger vehicles being a way of not only compensating for rising transportation costs but revolutionising the potential for goods to be transported in a more sustainable way – such as compiling many goods on the same vehicle that all need to go to the same place. Moreover, innovative modes of transport such as autonomous and self-controlled systems may also be the frontrunners when it comes to the changing face of transport in the future.

With the current challenges facing the world today, there are many changes that can help better position the T&L industry to operate on a greener level. With the proactive use of technology to optimise industry operations, the T&L sector can start on an innovative path towards a sustainable future.

With an increased shift toward mobile and IoT technology in the T&L industry, there is also a need for businesses to have an advanced mobilefirst strategy in place ensuring that all devices are centrally connected, secure and properly integrated into operations. For T&L businesses looking to adopt new technology to recalibrate their sustainability credentials, IoT management solutions and secure mobility management solutions offer an integrated solution to manage and maintain the security of all mobile devices and connected peripherals within operations. ●

To learn how technology can drive T&L business performance, please click here.

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Industry Updates

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

The eCommerce landscape is changing.

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

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

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

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

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

SUPPLY CHAIN INSIGHTS

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

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

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

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

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

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

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

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Industry Updates

Thinking Big with Microfulfilment

WRITTEN BY DEZ BLANCHFIELD CHIEF DATA SCIENTIST, SOCIAALL

As eCommerce and ‘store to door’ delivery looks set to continue well beyond the end of the pandemic, many retailers are struggling to turn a profit from online sales. The challenges of 2020 didn’t just fast-track eCommerce uptake, they also accelerated advances in technology, pushed businesses to revaluate traditional models and forced many to rethink relationships between retailers, disruptive start-ups and automation; setting the scene for a radical shake up of fulfilment strategies in 2022.

you're almost pushing customers or footfall into the stores as parcel collection points, rather than the traditional function of stores.

Many retailers who've got large numbers of physical stores now probably don't feel that they need to keep so many and will look to reduce their high-street presence; keeping those stores that do remain (certainly in terms of fashion retail) more like showrooms, holding less costly inventory on site.

Customers will still be able to look, feel and touch products, but actually in terms of fulfilling orders that may well come from

What's driving this new approach?

Microfulfilment is really about moving out of large singular distribution centres (DCs) to more local, smaller, convenient hubs. Traditionally, customers often have (depending on the size of brand and industry) one or two large, remote DCs which they would look to fulfil orders from for an entire country or region. By expediting the fulfilment process, microfulfilment gives brands the opportunity to get goods to their customers more quickly; it also provides them with an additional, convenient click and collect point for consumers. It’s about taking the overall supply chain and making it more distributed, in an ongoing effort to meet customer expectations that will continue to shift and evolve well beyond the end of the pandemic.

What does microfulfilment mean for traditional stores?

As a result of many of the restrictions imposed by the pandemic, a lot of retailers are now looking to fulfil eCommerce orders from stores, to the point that it’s become so successful we may soon reach a point where

SUPPLY CHAIN INSIGHTS

Three tips for making the right microfulfilment decision There are three key considerations for retailers considering a potential microfulfilment strategy. The first is to consider what is the purpose of your microfulfilment centre: are you looking at it in terms of fulfilling direct consumer orders, or maybe you are looking at it in terms of a click and collect location or a hub and spoke model delivering out to stores? Secondly, how many SKUs you decide to offer will largely determine where you locate, and finally, what type of technology will you need in the centre itself to make it function smoothly. Maybe it will require more automation or maybe it will require a specific, leaner warehouse management solution.

Microfulfilment centres will enable brands to deliver faster and more efficiently on brandcustomer promises, but make sure you don’t sacrifice due diligence at the strategic planning stage for speed of operational roll-out.

An exciting period of supply chain innovation is here

another point. This is where microfulfilment centres really come into their own. For example: a customer may say; yes, I like this product. This is exactly what I want. I'll be here shopping in the city centre for a while. Can you get it ready for me to collect within the next hour and a half, or simply deliver it to my home. Now there's no way you could do that from a remote DC to a city centre location, but you can do it from a microfulfilment centre.

Looking ahead to the immediate future, there are still many challenges ahead, however, we can finally begin to feel positive of the longer-term outlook for the retail market and business conditions in general. The last two years showed us all (retailers, business leaders and consumers alike) what could be achieved with an agile, proactive, ‘can do’ mentality. Providing this approach to problem solving stays with us post-pandemic, it should herald an exciting period of supply chain innovation, as advances such as microfulfilment become commonplace. ● For more information on how technology can help improve your retail supply chain, please click here.

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Analysis

Bastian Consulting on How to Prepare for the Great Resignation According to Aaron McEwan, a recent survey

by Gartner predicts that in Q1 2022, Australia will be facing a similar event as the US now dubbed “The Great Resignation” – where one in three Australians will be looking to change roles.

The economy has shifted from an “employers market” early in the pandemic to an “employees market” today. Some 18 months ago, employees were stood down, faced a reduction in wages, had workdays cut, benefits taken, and very little received commissions or bonuses. Many employers had to for legitimate reasons, but others joined the “Managing through a Pandemic Conga Line” because it enabled them to create more profit at the top end whilst reducing costs. Besides, with so many redundancies and volatility in the market, no one was going to move jobs - at least they thought.

The supply chain sector was one of the hardest industries hit, with descriptions of the industry focused on “an unstable labor market which is negatively impacting the trucking industry and crippling the system of moving goods.”

Just under two months ago for example, 7000 drivers around Australia protested for better working conditions at one of Australia’s largest 3PLs, causing even longer delays on deliveries across the country.

SUPPLY CHAIN INSIGHTS

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Today, supply chain workers are becoming increasingly frustrated and overworked, so what can we expect to see more of in 2022?

Make it rain There’s no denying that in the last two years Supply Chain and Technology have been two industries that have boomed, not just when it comes to demand of goods and services but expertise to deliver on that demand as well. Dealing with experts directly in these fields we have noticed a huge increase in candidate salary expectations, most wanting upwards of 30% to even consider looking at another role.

Two years ago, you could easily find WMS Specialists with a budget of $80,000 to $100,000 – now however, it’s a very difficult task to attract candidates with a budget less than $120,000. This is very similar for Warehousing and Operations Managers who you could previously find between $70,000 and $90,000. Lately however, many at this level will only consider roles above $110,000.

With the current labour market in shortage and resignation levels expected to rise, we predict employers with bigger pockets will be willing to provide unprecedented increases to secure top talent.

Especially so if they are facing distressed supply chains. However, this doesn’t mean that companies won’t be able to compete with other offerings.

Watering your own yard With a need to retain IP in a tight labour market, we expect to see more employers look at how to improve career planning and succession internally to ensure adequate support and training for workers to move up the ladder.

We are starting to see a number of leading organisations invest heavily in graduate programs, offering financial support for further tertiary education studies or providing retention bonuses to ensure continuity.

Flying unicorns Now that the borders will re-open and travel restrictions are said to ease; overseas talent will be more accessible.

For omni-channel and eCommerce focused Supply Chain roles for example, we expect to see a surge in talent from the US, India, Asia and the UK arriving – bringing years of experience in an area that only few Australians seem to grasp well and many Australian companies still need.

SUPPLY CHAIN INSIGHTS

Prepare for the talent crunch today What can businesses do in preparation for the impending talent crunch?

• Leverage your internal team with a candidate referral program • Initiate your internal career development plans • Partner HR with Marketing to create and promote your employer brand • Create easy to read, clear and concise job descriptions • Market map a talent pool or hire an external party to do this for you • Ensure you are set up with a good Talent Management System and process • Create a great experience for candidates • Ensure your salary bands are competitive in the current market • Create more compelling culture boost initiatives

HR staff will need more PR and marketing skills than ever before as it won’t be just about creating these initiatives – it will be about communicating them.

Everyone says they’re flexible – but what does flexibility mean in your business?

Remote working options for desk-based work, working four days a week and getting paid for five?

What initiatives will set your business apart in a competitive hiring field to help attract the best talent?

It’s safe to say that those decision-makers with a longer-term view who skipped the train may be reaping the benefits very soon – for employees, the next few months will be a time of broad reevaluation. ● For more information around how your business can prepare for future resignations, please click here.

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Next Issue

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

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

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

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

SUPPLY CHAIN INSIGHTS

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