Automation Advantage: Transforming Australian Supply Chains
Written by Michael Dyson, VP of Sales, APAC at SOTI
The complex and fragile nature of Australian supply chains was glaringly exposed by the pandemic, with the retail sector suffering supply shortages, demand fluctuations and logistical delays. Today, traditional operating models are struggling to keep pace with consumer demands and operational challenges. Local manufacturers and retailers feel the pressure of high wages, energy costs and expensive property. In an increasingly competitive global market, there’s a pressing need for Australian businesses to harness innovative digital solutions to improve its efficiency to remain competitive.
Cost of Conducting Business
With one of the highest minimum wages globally, running a business in Australia comes at a cost. While wages starting at $21 per hour might sound like great news for workers, it puts immense pressure on local manufacturing and retail businesses, especially when high real estate prices and cost of resources are also factored in.
These challenges often have a domino effect, impeding future growth of organisations and forcing them to operate from less central locations. On top of this, it creates additional transportation costs and difficulties in recruiting staff.
High operating costs can increase the likelihood of supply chain disruption. For example, if transportation costs are high, it may be more difficult or expensive to import or export goods. This forces retailers to seek more cost-effective (but possibly less reliable) delivery partners, resulting in delays, shortages and other issues which impact a business's operations and its ability to meet customer demand. In some cases, businesses may have to pass costs onto customers in the form of higher prices, which can make them less competitive in the market.
What are the high-performing supply chain organisations doing about it?
The Automation Advantage
The perception of supply chains is already changing, with the emergence of new technologies demonstrating how they can drive efficiency and support profitability. Leading the redesign of operating models in the industry are automated workflows, with mobile devices becoming increasingly popular in Australia for improving workers’ productivity.
Enterprise mobile devices integrated with IoT provide businesses with remote support to solve problems quickly, minimise downtime and secure business-critical information. This level of mobility enhances transparency across the supply chain, providing real-time analytics on business-critical operations. Now, businesses have visibility into key information such as package tracking, product inventory levels and logistics monitoring to ensure the right item is available in the right location, at the right time.
The implementation of automated workflows can be both an opportunity and a challenge for organisations, as these solutions require a complete overhaul of traditional, manual operating models. But when done correctly, organisations will experience a significant increase in efficiency. Along with additional capabilities to manage the full lifecycle of a consumer retail order, including forecasting, demand planning and sourcing. Automated workflows can also integrate with other systems, such as inventory management and logistics systems, enabling businesses to receive real-time data and visibility on stock levels at a store or warehouse. This visibility allows businesses to identify low-stock areas as well as issues in the supply chain, allowing for continuous improvement and optimisation.
Automate Operations to Reduce Errors and Waste
A complete order lifecycle, encompassing forecasting, demand planning and sourcing can now be managed using a supply chain automation solution. It enables real-time tracking of warehouse inventory levels, shipping and receiving functions. Not only that, but automation solutions can greatly reduce human errors during the processing of orders. Since these functions are digitized, businesses will have more time to focus on strategic aspects to help further improve output and operations.
Automation solutions are an essential part of the modern supply chain management system because they provide enhanced insights into a business’s operations while saving time and money. When combined with advanced machine learning algorithms, organisations can utilise built-in analytics programs to better understand business operations and make informed decisions on future growth opportunities.
The Age of Automation Has Arrived
While the state of supply chains in Australia is challenged by ongoing disruption, there are opportunities for businesses to optimise operations and thrive in the current environment. By embracing technology and collaborating with partners, businesses have every chance to build resilient supply chains that can withstand the test of time.
While the focus for supply chain businesses over the last two decades has been to achieve scale and lower costs, the next decade will be characterised by prioritising resilience, sustainability and a more comprehensive interpretation of value, with automation playing a critical role in defining success.
For more information on how your organisation’s supply chain operations can be enhanced through automation, visit: soti.net/products/soti-snap/