Report reveals the top three priorities for Australia’s supply chain leaders

Amid global supply chain challenges and disruptions, a new report has revealed that supply chain leaders are preparing to pour their focus into sustainability, digitisation, and eCommerce.

Australia’s first Supply Chain Leaders Sentiment Report, produced by Australia Post in partnership with Deloitte, has found that 57 per cent of respondents believe that supply chain was playing a central role in determining and delivering their overall digital strategy.

Gary Starr, executive general manager at Australia Post, said a strong and resilient supply chain was critical in enabling business growth and success in a post-pandemic world.

“Supply chain disruptions are a growing challenge, and it is important businesses have processes in place to weather potential impacts, while also continuing to improve their speed and flexibility, reduce costs and manage their logistics and fulfillment to ensure they can meet the needs of their customers,” Starr said.

He continued that national eCommerce growth has topped at 76 per cent for the 12 months to September 2021.

Compared to just two years ago, the growth opportunities for Australian businesses are significant.

According to the report, 70 per cent of survey respondents had bolstered their eCommerce capabilities during the last two years.

Ethical sourcing and sustainable supplier selection were also among the main strategies businesses were using to improve the sustainability of their supply chains, with almost half of those surveyed piloting circular supply chains.

Related: Retailers must offer sustainable delivery options or be a ‘strategic risk’

John O’Connor, National Lead Partner, Supply Chain at Deloitte Consulting, said with unprecedented and ongoing disruptions across supply chains, business leaders are looking deep into their internal capabilities and external supply networks to identify not only potential risks, but also new sources of value and competitive advantage.

“For many industries, whether they are consumer or business focused, supply chain has become the new strategic battle ground, ” O’Connor said.

“Digitisation of supply chains and the rapid shift to eCommerce has quickly shifted from being a defensive response to COVID-19 disruptions, to an offensive play where completely new business models are battling for market share against traditional players and routes to market,” he said.

“What this report has highlighted is that accelerating investments in technologies such as supply chain automation and AI, as well as collaboration and integration with your strategic supply chain partners are crucial to improving resilience, agility and the ability to sense and respond to the next new threat or emerging opportunity,” he concluded.

Source: Australia Post newsroom