Generate Worth from Waste

Extract from blog by ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

Here in ASCM’s hometown of Chicago, about 55 million pounds of food is wasted each month, despite the fact that one in six Chicagoans suffers from food insecurity. Alan Reed, executive director of nonprofit Chicagoland Food & Beverage, says this regrettable fact is what compels his organisation to work with both industry and food banks “in order to find new and innovative ways to address these issues.”

Reed’s comments remind me of a recent Wall Street Journal article, which highlights why some food and beverage industry giants are starting to see their trash cans in a different way — as an exciting new value stream. Starbucks is reprocessing the outer layer of its coffee beans into a natural sweetener. Mondelez is making snacks from parts of the cacao plant unused during chocolate production. And Kellogg Co. is collaborating with a craft brewer to ferment discolored cereal that would normally become animal feed. The first runs of Cast Off Pale Ale (made from Rice Krispies) and Sling It Out Stout (made from Coco Pops) sold out in hours.

Some clothing manufacturers are even turning food waste into leather alternatives. “This is not just a solution to the problem of waste,” Carmen Hijosa, founder of Ananas Anam, told The Journal. “It also brings a new income stream.” Her a company works with pineapple farmers in the Philippines, who traditionally would have burned or left leaves to rot after harvesting. The resulting leather alternative, Piñatex, is now used by Hugo Boss to make shoes; for a sustainable-clothing line at H&M; and at Hilton Worldwide, which covers footstools with the material for what the company calls vegan hotel rooms.

Learn from the best

Five inspiring presentations are currently being shared on “Foodbytes,” the blog of food and agriculture financial services provider Rabobank. These food technology innovators discuss what they believe to be the most pressing industry challenges, as well as some exciting potential solutions. One of these involves packaging that can sense when a company’s distribution, handling and warehousing processes are increasing the risk of food spoilage. By pinpointing the problem area, this tool can bring about smarter supply chains.

 

Is Blockchain the Remedy to Health Care Logistics Issues?

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By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

Increasingly, pharmaceutical companies are putting blockchain to the test in order to track and trace the drugs they manufacture and ship. In fact, according to Healthcare Weekly, blockchain is “getting massive attention” in health care, with 40 percent of industry executives reporting that it is one of their top five priorities.

Blockchain, a decentralized network that shares information with participants in real time, has clear potential to transform and advance health care logistics, transportation and distribution. “The technology offers a potential solution to a number of challenges,” write J. Mark Waxman, Kyle Faget and Ben Daniels for Medical Economics. “The ability of blockchain to track and store data chronologically across a peer-to-peer network makes the technology particularly well suited to solve for the traceability requirements imposed by the Drug Supply Chain Security Act. In addition, blockchain is uniquely secure, which could reduce common issues in drug supply, such as drug counterfeiting.”

A recent Cointelegraph article shares how one company is working to achieve this pharmaceutical supply chain precision. Blockchain startup MediConnect offers a solution that will enable tracking and managing of prescription medication through the supply chain while preventing misuse.

Author Ana Alexandre writes that, earlier this year, the Ugandan government partnered with MediConnect to trace counterfeit drugs within the country. “The blockchain-based platform enables the recording of prescription medication, thus identifying counterfeit drugs and preventing their distribution in the pharmaceutical supply chain,” she says, adding that the potential of blockchain in health care is also recognized by the United Arab Emirates’ Ministry of Health and Prevention, which launched a blockchain system for recording and sharing health care data.

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Arm yourself with knowledge

One of the most interesting aspects of blockchain is that it requires no trust from users but delivers trustworthy transactional data. As a result, supply chains around the world are benefiting from a whole new level of transparency into the status and location of their goods.

As Ron Crabtree, CIRM, SCOR-P, explains: “The opportunities for logistics, transportation and distribution companies are truly endless, as the often painful process of making sure everything is done right throughout a value stream becomes much less stressful and error-prone. Indeed, many experts agree that blockchains are generating a less expensive, reliable way to know the status of a transaction.”

One way to ensure that you have the latest industry-leading skills and knowledge is by becoming Certified in Logistics, Transportation and Distribution (CLTD). This APICS designation will help you understand and maximize new supply chain technologies, trends and solutions. The CLTD program gives you everything you need to effectively demonstrate in-depth expertise of essential concepts in order to streamline operations, boost your organisation’s bottom line and set you apart from your peers.

According to APICS Asia Pacific facilitator Thomas Vandenbogaerde in an exclusive podcast interview with ASCI Lounge, how they compete and how they can keep their customers by being better in their distribution and wider supply chain.

Contact APICS Premier Channel Partner Australasian Supply Chain Institute for details on the CLTD certification today or visit our website or email enquiries@asci.org.au

 

The Power of Partnerships: Why customer-centric alliances are the future for all businesses

Simon Arch

Guest blogger: Simon Arch, Alliances Director, JDA Software ANZ

It’s no secret that most successful businesses around the world have customers at the centre of everything they do. In fact research by Deloitte and Touche discovered customer-centric businesses were 60 percent more profitable compared to companies that weren’t focused on the customer.[1]But how can companies create genuine partnerships with other businesses which put the customer at the centre of everything and why is this critical for business growth?

In my role, I am responsible for developing an ecosystem of partners that together provide the best value and best possible customer outcome. Together with a carefully selected group of partners, we develop aligned go-to-market strategies to present to prospective customers to help their businesses succeed.

It sounds easy, right? Wrong! It’s a constant juggle of individual personalities, goals and emotions. I often describe my role as part marriage broker and part marriage counsellor (!) as I get caught up in working with egos, changing business priorities, shifting budget expectations and quality of delivery.

The ongoing challenge I face on a daily basis is educating prospective partners and customers that no single business can provide all that’s required to deliver a successful outcome. There is no ‘one size fits all’ anymore. The problems we face are getting more complex and the end customer’s expectations are increasing all the time.

Our goal is to help our clients to understand they will get better value by bringing together each and every supplier. We find that’s a significant challenge, to set the customer’s expectations that there’ll be multiple stakeholders involved from day one. This is often a big cultural shift – customers have always dealt with just one supplier, why would they need to work with three or four? Once they see the value of working with a combined team of specialist suppliers though, the fears disappear.

Other challenges we face are to find the appropriate partners for the specific customer we’re working with and having enough partners with the right skills. We invest significant time in finding the partners, developing and training them on our software and keeping up with the demand as we grow our business. We’re always scanning the market and keeping our ear to the ground to find new partners.

We recognise that if we can combine in-depth industry and consulting knowledge with the technical knowledge from us about our software, then we’ll have a partnership made in heaven where we are able to expedite the solution and the deployment for the customer.

We also have an ongoing assessment of all our business partners, we often discover partners which may have been great years ago, may have changed industries or capabilities and may not be the right fit anymore.

The main things to consider before partnering with another business are to determine what or who is a useful partner? Is it one that has industry knowledge, technical capability or customer base? Alignment with your company is critical. A hunger to win business and a passion for the industry are key things I look for, but they are difficult things to discover without exploring the partnership first. Another point to consider is commitment – commitment to work with you and vice versa. We’re ultimately looking for a match of skills, passion and culture.

My top four tips for businesses who are looking to expand their alliance network and create a successful customer-centric partnership approach are:

  1. Carefully understand your requirements. Consider is it a gap in your own skills or is it a gap in your existing partner network? Analyse this carefully at the beginning.
  2. Work out what their capability is like. Do they have enough capacity to grow with you? Don’t forget technical delivery capacity.
  3. When you do find partners, prioritise, make sure you engage on every different level in their business from executive level engagement to the sales team and the technical delivery teams.
  4. Pick and choose who you are going to approach (potential customers) very carefully as partners like to see successes. When partners see that the partnership is working they are much more likely to want to do more repeat business with you.

Remember, action and patience are key when it comes to business partnerships.  At some point there will be issues – even from your own team – so you’ll need to counsel the stakeholders and above all be very patient. But when customer-centric alliances work well they can mean the difference between a thriving growing business and one which is going nowhere fast.

Visit: https://jda.com

[1]https://www.superoffice.com/blog/how-to-create-a-customer-centric-strategy/?insvid=16a24ae7840993e7–1555393641677

How Ingersoll Rand Revives Exhausted Products

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

Industrial manufacturer Ingersoll Rand (IR) has long positioned itself as a company that prioritises efficiency, energy savings and productivity. As its website states, “With principled leadership and ethical business practices, our high-engagement culture delivers enduring results that lead to a sustainable world.” Recently, IR saw potential to create added value by helping its customers meet their own environmental challenges. As a result, company leaders are taking the conservation philosophy to a new level.

IR’s sustainability commitment includes the extremely ambitious goal of reducing not its own, but its customers’ carbon emissions by 1 gigaton by 2030. Greenbiz’s Heather Clancy reports that this is equivalent to the annual emissions produced by Italy, France and the United Kingdom combined. Much of the plan revolves around remanufacturing end-of-life equipment. (Read more after advertising)

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“[IR] has operated an aftermarket service organization in Charlotte, North Carolina, since 1974,” Clancy writes. “After all, many metals used to make its Trane heating, ventilation and air-conditioning equipment have a demonstrable value, and there are well-established processes for recovering it. But in more recent years, the 183,000-square-foot operation … has become involved with activities focused on a different sort of mission: keeping older equipment in the field for as long as possible.”

Scott Tew, executive director for IR’s Center of Energy Efficiency and Sustainability, told Greenbiz that the company is focused on the concept of a “customer for life.” He recounts the story of a historic hotel in Portland, Oregon, that needed to upgrade its Trane HVAC system but had limited access to remove and replace failing equipment. Engineers disassembled and transported components back to Charlotte for repair, then reinstalled them in the exact same footprint as the original system. IR expects them to continue functioning for decades.

IR says it will fully support this environmental strategy moving forward. In fact, the company has established a new-product-development requirement that directs engineers to design for sustainability. As Clancy writes, “That includes both efficiency considerations and materials choices.”

Far-reaching results

For years, IR has looked to the APICS body of knowledge as a source of best practices, the primary method for getting employees speaking the same language and a key method for working toward a unified supply chain strategy. In fact, the company adopted a policy that required all materials managers to become APICS Certified in Production and Inventory Management (CPIM) designees within 18 months of being hired.

Then, to sustain this investment in learning and development, IR rewrote its materials management job descriptions to require CPIMs for all incoming managers. In addition, staffing personnel began targeting CPIM designees for open positions. (Read more after advertising)

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Today, IR has hundreds of CPIMs — and the finance team reports that this investment has paid off. A recent analysis found a direct correlation between materials manager performance and APICS certification. Most importantly, we’re now seeing that this training has led to initiatives that clearly aim to create a better world through supply chain. Learn more about what this globally recognized standard can do for your organization, your suppliers, your customers and beyond.

To find out more about APICS training, contact Australasian Supply Chain Institute (ASCI) National office at enquiries@asci.org.au

Machine learning and artificial intelligence for retail supply chains

How retailers can incorporate machine learning and artificial intelligence into their supply chain: A snapshot of the recent ASCI Networking Breakfast panel event

 

By Harsha Illindala, Vice President, Solutions Advisor – APAC at JDA Software

 

I was lucky enough to host a panel at a recent ASCI breakfast on new advances in machine learning and artificial intelligence and how they are helping retailers optimise their operations and supply chain. I was joined by Michelle Grujin, Managing Director, Retail Industry Lead ANZ at Accenture and Marcy Larsen, Industry Solution Executive, Retail and CPG at Microsoft.

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While these technologies are becoming increasingly important, we first discussed some of the macro trends influencing retail customers today, what makes them different to customers from 10 or 20 years ago to frame why investing in these technologies is so important:

  1. Hyper-personalisation

 

Retailers are now expected to customise the customer experience to the segment of one. Retailers need to cluster and segment more narrowly across all retail formats.

  1. Premiumisation

There is a growing interest in premium food, clothes and other merchandise. There has been growth in health, vegan and specialised foods. Customers are also concerned with ethical sourcing and fair trade. They want to believe in the product.

  1. Convenience

Convenience is the price of admission: customers expect retailers to be convenient to deal with. They prioritise this, often over price.

  1. Mobility

The ability to shop online from a Smartphone means customers are more mobile than ever before and can purchase from anywhere.

  1. Urbanisation and population

There is a changing population mix with more customers living in urban areas. Customers will favour retailers who prioritise inclusion and diversity and demonstrate authenticity.

  1. Talent

We then went on to discuss how talent in retail is changing. According to the 2019 Retail C-Suite Viewpoint surveyconducted by JDA Software and Microsoft, talent is a top three issue with the C-suite in retail.

The workforce is varied with more part-timers and a workforce with time constraints. The gig economy is mobilising millennials and the retired workforce. Employees now have the ability to achieve genuine flexibility and hold down several different styles of job which fits in with their lifestyle and personal constraints.

For retailers the focus is now less on workforce scheduling and more about engagement with employees. There is also a huge competition for skills so retailers need to create a dynamic environment which values their skills.

Engaging employees with technology that is as advanced, if not more advanced, than what they are able to access at home is important. Employees, just like customers, expect retailers to demonstrate inclusiveness, diversity and authenticity.

  1. Provenance in supply chain

Customers care about the claims made by brands and retailers about products. Smart looking packaging and brand advertising strategies are important. Environmental and societal influences, morality and accountability are priorities for the customer.

  1. Data

The influence of data is significant. Customer trust is established when the right data is provided. When there is transparency of data between suppliers – shipping through to store – it creates a better customer experience.

  1. Influence of digital

Customers expect the physical experience to be on par with the digital experience. Technology is transforming the customer: 75% of a customer’s visits to a store are influenced by digital and 58% of sales are impacted by digital, according to the 2019 Retail C-Suite Viewpoint survey.

Digital has changed the customer journey; digital is now the ‘front of store’. The customer journey has evolved to loyalty – discovery – research – purchase – fulfillment.

We then went on to discuss which technology, such as artificial intelligence (AI) and machine learning (ML), is emerging to help retailers meet the needs of the customer in light of these macro trends.

The Tech

We then covered technology that is playing increasing important role in the supply chain for retailers and why companies should be investing in them:

Technology for personalisation

36% of the C-suite in retail expect to undertake pilots using AI in personalised product recommendations, 20% for localised pricing and 29% for personalised product assortments.

AI helps retailers meet customer expectations around product availability and fulfillment choices – in-store, pick-up and delivery. Customers expect instant gratification when it comes to fulfillment.

AI also provides a flowing, single view of inventory and allows for dynamic allocation and fulfillment, predictive replenishment and a shorter product life cycle.

Technology for provenance in supply chain

AI and ML provide real-time visibility. Traditional systems such as ERP centric reports and dashboards are too slow, alternatively AI provides real-time and direct visualisation of supply chain data with ML identifying and weeding out data discrepancies.

Blockchain is becoming an increasingly common buzzword and is something that could old the answer to many provenance related issues. With Blockchain providing a method to manage forms of exchange, entities in a supply chain can with increased confidence know where each asset has originated

Technology for the workforce

Technology is changing rapidly and affecting supply chain practices. There are several workplace changes that will become more important to how supply chain operates.

With more virtual and contingent workers, automation, increased connectivity through workplace social networks (e.g. instant messaging, communities) and more advanced communication tools (e.g. virtual meetings, webinars) will become increasingly important. Apps (e.g. personal organisers, goal setting, real-time feedback, team activities) will play a role, as will gamification (e.g. realistic training scenarios to stress test and develop supply chain strategies). Artificial Intelligence (e.g. advanced data mining) will help identify business trends and opportunities.

Challenges in adoption

We went on to discuss the major challenges facing retailers in adopting these technologies.

Some of the key observations included:

  • 55% of retailers don’t have single view of inventory
  • 78% of retailers don’t have real time view of inventory
  • 50% of retailers believe their technologies are lagging
  • Most retailers have CDTOs / CDOs and in-house AI teams, but tangible and scalable innovations have been far and few between
  • Many retailers have started off by trying to understand “what will my data show”, but need to transition to “what action needs to be taken” as a result of those insights

Is technology simplifying supply chain or adding to complexity?

We went on to question whether an increasingly complex supply chain is being simplified or further complicated by technology. We agreed that technology can minimise store effort in handling product and create flexibility in flow volumes and mechanisms.

We also discussed automation. There are increased and more affordable automation solutions in warehouses and in-store. Automation delivers productivity but also narrows variations. This means there is a greater need to manage the inventory flow to leverage the automation. Retailers need to manage coordination across inventory planning, transportation, yard, dock and warehouse operations.

A big thank you to the ASCI for inviting me along to host this excellent and insightful panel.

If you have questions about how AI and ML can improve your supply chain, you can contact me at Sriharsha.Illindala@jda.comor visit the JDA website.

ASCI as Professional Accreditation Body

Extending an invitation to all Industry Peak Bodies in the Supply Chain

 

ASCI has positioned itself as the Professional Accreditation Body for the supply chain industry. In this capacity, it has developed a Professional Accreditation Scheme, in line with the criteria set by the Professional Standards Authority (PSA), which oversees the legislation for lawyers, accountants, etc.

Although ASCI has not yet obtained legislation for supply chain as a legislated profession, we are following the exact process in the expectation that we will one day be ready to seek formal legislation.

In doing so, the ASCI Professional Accreditation Scheme, in its current form, is the only one of its kind that is based on the PSA guidelines. To distinguish this from the offerings of other organisations, often also referred to as “Professional Bodies”, we need to understand the distinction between the various professional bodies in our industry. The term “Professional Body” is often used by Industry Peak Bodies in their reference to the fact that they serve the “profession”. They do indeed, but not as an accreditation body, rather an Industry Peak Body. They most often offer certification programs, rather than a professional accreditation scheme. Certification programs are not to be confused with a Professional Accreditation Scheme.

Here is the difference:

“Certification”, a formal process of assessing that an individual is qualified in terms of particular knowledge or skills. It requires the candidate to study a particular learning set and write an exam on this set of knowledge in order to obtain certification.

“Accreditation” which, as in the case of lawyers, accountants, engineers, etc provides independent recognition of achievements and maintenance of the exact standards required to join the community of professional supply chain professionals and practitioners.

Professionals and practitioners registered under the professional accreditation scheme, are recognised for their competence, ability, integrity, and service to the profession. It is a voluntary means of demonstrating professionalism and involves being held to account by your peers for your abilities and adherence to ethical standards.

It is in this context that ASCI has commenced discussions with several Industry Peak Bodies in the supply chain domain, with the objective to offer registration against the Professional Accreditation Scheme through these Industry Peak Bodies, to their members, making the scheme more accessible to the broader supply chain community. Peak Bodies that are interested in offering professional and practitioner registration to their members can do so by affiliation with ASCI.

If you represent a peak industry body then we want to hear from you. Contact Our National Office at professionalisation@asci.org.au to commence discussions. It is through our common passion for the sustainability of the supply chain community that we can collectively raise the bar of supply chain management in Australasia.

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Dr Pieter Nagel is Head of Professionalisation at ASCI. Contact him about collaboration or registration at professionalisation@asci.org.au

Be a Supply Chain Ambassador

Japanese Business Colleagues

Guest Blog: ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

“In the first three months of 2019, employees got so much more work done that they smashed productivity forecasts,” writes Alexia Fernández Campbell for Vox Media. “That’s great for businesses (they earn more money) and for the economy (GDP grows faster). The problem is that companies aren’t rewarding their employees for the extra hard work.”

A recent Gallup World Poll bears out the author’s conclusions, finding that 85% of workers are displeased with their jobs.

As I read this article and considered that unfortunate statistic, I couldn’t help but reflect on ASCM’s brand new 2019 Supply Chain Salary and Career Survey Report. With so many people feeling underappreciated and underpaid — in fact, there were a record number of strikes in the United States last year — this survey reveals that supply chain salaries are on the rise and industry professionals truly love their jobs.

The median supply chain salary in 2018 was $80,000, a 3% increase over 2017. Even more importantly, an overwhelming majority of respondents say they are very or extremely satisfied in their jobs.

This report confirms what all of us at ASCM and every supply chain professional already know: Supply chain careers are rewarding, both professionally and personally. We at ASCM are also proud to discover that the median salary for people with at least one APICS certification is 25% higher than those without. And, in addition to the power of APICS education to advance careers, our initiatives related to women in supply chain are paying off: The gap between men’s and women’s salaries is narrowing, especially for professionals under 40, where the difference is less than $1,000.

Put the findings to work

As we continue to face a vast talent gap, this report highlights numerous opportunities to attract more people to the supply chain. But ASCM can’t do it alone; we need your help.

Begin by talking to the young people in your life about why you are passionate about what you do. Describe your job and how it has a positive influence on the entire business, the lives of your customers and the communities in which they live.

Explain why you look forward to staying in supply chain for years to come (93% of respondents believe they will stay in the field; 44% say they definitely will).

And tell them about the work-life balance you enjoy (nearly all respondents receive holiday pay, and the majority receive three weeks or more paid time off, as well as flexible work schedules).

Then, take a moment to download the survey and post it in your social channels. Share something that you’re especially excited about with the hashtag #lovemyjob. As more and more people outside the industry experience our enthusiasm, they will see that supply chain professionals are highly sought after by employers, make a difference at our organisations and have truly fulfilling careers.

To find out more about APICS certification, visit Australasian Supply Chain Institute – the Premier Channel Partner – for Australian Semester schedules and prices.

Are we ready for Industry 4.0?

Guest Blog: Rob Stummer, CEO, Australasia, SYSPRO

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With all the discussion around Industry 4.0, how ready are we for it in this region and how many manufacturers have fully embraced it? It’s widely agreed that manufacturing has experienced a decade of productivity stagnation and demand fragmentation and the fact is that this level of innovation is long overdue. It’s been proven that the Australasian organisations that have taken Industry 4.0 innovation to scale beyond the pilot phase have experienced unprecedented increases in efficiency with minimal loss of employees.

The main issue reported by McKinsey and the World Economic Forum is that most companies appear to be stuck in the pilot phase and despite all the research and evidence saying that it will lead to a sizeable increase in global wealth production, benefiting people throughout society, the Australia and New Zealand governments have not done enough to help its advancement.

Globally it is having an impact globally across multiple sectors, simplifying things by streamlining processes, reducing human labour, fostering global interconnectedness and leading to unlimited possibilities. But is Australasia really ready for Industry 4.0?

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Automation won’t take jobs

There has been a lot of scaremongering about the risk to jobs due to automation, but technology and changing consumer preferences are driving the demand for new skills and jobs. In many cases, these emerging technologies have improved processes without shedding jobs and have made businesses more competitive than they have ever been, resulting in lower prices for consumers, higher wages for employees or higher profits, leading to increased demand and more jobs.

The previous industrial revolutions have shown us that, in the long run, technology and other labour market changes have been positive for many employees, removing the jobs that nobody wants to do as they can be unpleasant, physically exhausting and dangerous or boring and repetitive.

In smart factories, the emphasis will be on adding value, and up-skilled workers will be highly sought after for their specialist knowledge and ability to innovate.

Will bots take over the world?

There are a lot of myths surrounding AI, and science fiction movies often portray it as robots with human-like characteristics taking control and using their super-intelligence against us. There’s no doubt that AI does raise a whole host of complex questions, and that the current way the industry does certain things will become defunct.

We can’t ignore the fact that the Australian manufacturers that are leveraging AI have made their companies far more efficient and productive. This is a trend that their leaders see as inexorable, and the pressure on them to adapt and compete is huge.

Automation is essential

Automation is working extremely well in several different manufacturing scenarios, particularly when finite precision is needed, in challenging or dangerous work environments, where repetition happens and when personalisation and configuration are required.

So, what does automation look like in practice in an industrial environment? There are many tasks that could be carried out by a robot; not only would they be more efficient, but also the employees could then focus on more complex work.

The real benefits of automation are what makes it truly worth the investment, including increased efficiency, reduced costs, improved safety and wellbeing for employees, due to avoiding monotony and a clear competitive advantage over manufacturers that choose not to automate. Automation is clearly the future of Australasian manufacturing and its influence will only increase as competition from China and other developing Asian nations grows.

Rob Stummer is CEO, Australasia, SYSPRO

 

 

Spacious Potential in the Sharing Economy

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Photo by Pixabay on Pexels.com

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

The sharing economy is no longer just a catchy turn of phrase; today, sharing, renting and subscription services are everywhere. AirBnB for your holiday rental; WeWork for freelancers who prefer the office environment; Rover for the pup’s midday walk; Uber and Lyft when you need someone to drive you places; and Zipcar, LimeBike or Bird Scooters when you’d rather do the driving yourself. The potential applications are endless.

Although only 19 percent of U.S. adults have engaged in a sharing-economy transaction, PwC research reveals that 83 percent of survey respondents believe these services make life more convenient and efficient, 76 percent say they are better for the environment, and 43 percent admit that owning things can feel like a burden.

As ownership becomes unfashionable, the fashion industry is also taking notice.

“In October, the mall fixture [Express] launched Style Trial, a service that allows customers to borrow up to three pieces — with no limits on exchanges, free shipping both ways and free dry cleaning — for $69.95 per month,” writes Jasmin Malik Chua in Sourcing Journal. “If a subscriber loves something to death, she can buy it at a discount for keeps. Otherwise, she can keep garments circulating in an eternally refreshed ‘closet in the cloud’ with virtually infinite options yet zero commitments.”

Jim Hilt, Express executive vice president and chief customer experience officer, explains that this allows customers to tap the company’s “full assortment and styling services without breaking the budget.”

In addition to this kind of flexibility and cost savings, sharing clothes eliminates the hassle of shopping malls and the time spent packing bags for donation — not to mention all those minutes staring at our wardrobes trying to decide if an item still sparks joy.

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Shifting business models

Until very recently, most of us would never have considered staying in some random person’s home while on vacation, let alone sharing a sweater with a bunch of strangers. Yet today, Airbnb averages 425,000 guests per night — nearly 22 percent more than Hilton Worldwide.

“The data shows, renting and sharing are becoming increasingly popular alternatives,” the PwC report asserts. “Executives will be wise to assess the role of their product and brand in this model — are you squarely a purveyor of goods, or are you an enabler?”

For those supply chain managers bracing for change and facing some tough calls concerning clothing lifespans; quality control of shared garments; and logistics economics, especially for lower-cost items, there is some good news. The sharing economy is also flourishing in the education space, with LinkedIn Learning, Grow with Google, and a seemingly infinite number of instructive and informative videos on YouTube. Our own channel is bursting at the seams with customer success stories, webinars, research, annual conference sessions, and a multitude of supply chain education tailored to fit just right.

To join ASCM, joint membership is available through Australasian Supply Chain Institute for just $440 per annum. Visit our website for a full list of membership benefits.

Indian regulations rain on Amazon and Walmart’s e-commerce parade

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

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Amazon and Walmart subsidiary Flipkart is scrambling to revamp its supply chains, vendor relationships and systems. New regulations from the world’s fastest growing economy have undermined these retailers’ business models and obstructed their sales in India’s burgeoning e-commerce sector.

Previously, foreign companies were forbidden from holding their own online inventory and shipping it directly to customers. Amazon had found a workaround in the form of local subsidiaries of firms in which it had holdings, which opponents insisted was violating the spirit of the rule. Largely due to such proxy sellers, Amazon and Walmart had controlled almost 80 percent of India’s e-commerce.

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But as of February 1, such goods are not permitted for sale by foreign companies. In addition, these firms are barred from entering into exclusive online sales agreements. A vendor’s inventory also will be considered under the control of an e-commerce marketplace if more than one-quarter of its sales are derived there.

The protectionist move follows ongoing complaints from domestic retailers over anticompetitive practices. Amazon and Walmart both requested a six-month postponement of the effective date but were denied.

“Thousands of products were pulled from Amazon.com Inc.’s India website Friday — the first direct impact from the country’s new e-commerce rules,” writes Corinne Abrams in the Wall Street Journal. The article goes on to explain that the restrictions are the latest effort by India to curb U.S. tech giants’ dominance in the country and “promote homegrown companies” as Prime Minister Narendra Modi seeks a second term.

“Both Amazon and Walmart have made big bets in India, where the e-commerce market is estimated to balloon to $72 billion in 2022,” Abrams adds. “Amazon has pledged to invest $5 billion to expand in [India], while Walmart’s takeover of India’s Flipkart for $16 billion was its biggest acquisition ever.”

Global supply chain know-how

The operations of these e-commerce giants have been thrown into disarray. As these companies, and others, navigate such severe regulatory pressure, success will hinge upon the effectiveness, responsiveness and flexibility of their supply chains.

ASCM provides the resources you need to plot your own course through the ever-shifting global marketplace. The APICS Certified Supply Chain Professional (CSCP) program enables individuals to master the fundamentals of supply chain strategy, business model design, relationship-building, risk management and much more. In particular, the CSCP learning system includes a module centered around monetary, regulatory and trade considerations; negotiation and collaboration; and international standards and compliance. Begin your journey toward this world-class certification today.

The Australasian Supply Chain Institute (ASCI) is the Premier Channel Partner for APICS and offers joint memberships with ASCI for local and ASCM for global membership for both corporates and individuals. Contact us today at http://www.asci.org.au/membership or enquiries@asci.org.au.