Creating an efficient supply chain
Supply Chain Initiatives
Victorian Government initiatives such as the Supply Chain Capital Program are also working to directly improve performance among separate companies linked by common supply chains.
For example, Australian Vinyls Corporation (AVC) piloted new e-commerce technologies in Victoria with supply chain partners, interstate road transporter, Fred’s Transport and plastic pipe and PVC products manufacturer, Vinidex. Through the project, they developed an integrated information flow that allowed their systems to electronically talk to each other, and achieve what is known as System Interoperability. This improved monitoring of stock levels across the supply chain and eliminated double entry of data between trading partners, delivering time and cost savings to keep AVC competitive against imports. It also cut nearly in half the time customers needed to reconcile supplies in-transit, and delivered over multiple plants, which dramatically improved the management of raw material and production scheduling.
Another example was the Mercury Communications Group trailing the innovative new print-on-demand system Booksurge, to print and distribute specialist academic monographs under commercial conditions. Mercury’s supply chain partners were the project’s print data management company, Thorpe Bowker, and academic publishing house, Melbourne University Publishing. It can take more than three weeks for books to be shipped from the United States or Europe, even when they are in stock. But advances in digital printing, managed by a system like Booksurge, means books can be printed as needed in the country where the order originates. Printing on demand cuts delivery times and inventory, and allows improved electronic ordering, as well as copyright and rights reporting management.
Mitre 10 also developed a new supply chain approach through the Supply Chain Capital Program to improve efficiency in the distribution of timber intended for house construction.
By streamlining processes and distribution and by extending e-commerce systems, Mitre 10 trailed the delivery of finished timber in house packs from suppliers to building sites bypassing the more common system of routing the timber via a central distribution centre. Less handling of the timber this way lowers the possibility of injury while a direct-to-site distribution system also means fewer road trips for the companies involved—a saving for them and a bonus for other road users.
Another project funded by the program brought a group of small companies together with Australia’s biggest retail chains, 7-Eleven Stores. A new electronic ordering, replenishment and receiving process allowed overnight delivery of fresh food from a central distribution point into the convenience stores. This opened up new opportunities for smaller suppliers who didn’t have the distribution capabilities themselves to deliver to hundreds of stores, but could otherwise meet 7-Eleven’s requirements.
Total supply chain management could hardly be more important than in the health care industry where timely, accurate, and cost-effective service can literally be a matter of life or death. Furthermore, there is a mandatory requirement for the tracking of medical devices that are intended for implantation. With support of the program, the radiology department at Alfred Hospital moved to an electronic system for tracking medical devices to increase patient safety and enable much better management in the event of a product recall. This also meant nurses could get more time with their patients as they spent less time managing medical inventory.
Improving Your Supply Chain
So if you think your own operation needs to improve its supply chain practices, what should you do next? As with most other business areas driven by specialist technologies and expertise, informed and individually tailored advice is central to making the right decisions. Here you should start by finding a business adviser or consultant with experience of supply chain issues.
And be sure to check with your relevant state government department on initiatives specific to your state or industry.
By aiming for supply chain excellence, you’ll be boosting your own bottom line and becoming another productive link in Australia’s connections with the global economy.