Page 66 - Retail World Magazine Jan/Feb 2021 TOB
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                 SUPPLY CHAIN WHY PROTECTING SUPPLY CHAINS SHOULD MATTER TO ALL Traditionally relegated to support status, the supply chain is starting to be perceived by retailers and manufacturers as a strategic tool for business growth and performance. By FedEx Express Australasia Vice President Peter Langley. efore Covid-19 sparked the We must protect the overall supply chain conversation on the national and secure our future against Covid-19. distribution of vaccines and Misuse of the network for highly criminal toilet paper, it’s fair to say that activity such as trafficking of drugs, the vast majority of Australians spent exotic animals or weapons is also an very little time, if any at all, thinking about supply chains. Research from 2020 shows that critical supply chain gaps continue to be an issue globally, including resilience and a lack of digital competencies. The survey finds that while modern digital technology remains the top driver of change in the supply chain, transformation remains sluggish. In fact, half of all companies surveyed self- reported that they were lagging behind. Fortunately, the research indicates beginnings of a critical paradigm shift in perceptions. What can go wrong? Our lifestyle means the Australian community has an increasing reliance on both domestic and international shipping. Supply chains make our everyday lives possible. Because of them, fresh avocados from Queensland farms and chai tea from Sydney’s Bondi delivered to our corner cafe for Sunday brunch is possible. They bring smartphones from China to Australia, feeding our thirst for tech and making weekly video calls with mums and dads possible. They distribute life-saving insulin doses from pharmaceutical manufacturers to people with diabetes across the country. This means that when it comes to potential supply chain issues, flexibility to meet drastically increased community demand is just the beginning. It’s equally imperative to the entire community that we ensure the network is safe. When it comes to the security of our supply chains, there are many issues for us to be vigilant against. Theft could see millions of dollars’ worth of goods go missing annually. While any shipment can be targeted, such as wine and craft beer, or organic beauty products, in the wake of the pandemic this becomes a critical risk we cannot take in the scenario of global vaccine shipping. unfortunate reality and can happen, even in Australia. Protecting the supply chain Fortunately, events in 2020 have prompted government and industry to take substantial steps towards strengthening the resilience and security of our supply chains For instance, October’s federal budget included the announcement of a $107.2 million ‘supply chain resilience’ initiative to ensure Australia is on the front foot with handling potential issues and disruptions to the network. New security measures were introduced by the federal government earlier this year to further strengthen Australia’s domestic air cargo operations. These initiatives are just some of the latest enhancements to ensure Australia’s supply chain security and capabilities continue to go from strength to strength. Many of these build on measures already in place that are typically employed by multinational supply chain organisations such as FedEx. For example, many supply chain professionals should employ audit processes to identify and nip potential threats in the bud. Well established logistics companies have robust processes that incorporate pre-emptive examinations and plans for security. The engineering principle of redundancy – or duplicating critical functions within a system to increase the system’s overall reliability – also applies to security in logistics. Supply chain professionals understand that layering security measures multiplies effectiveness and results in more than the sum of its parts. As an example, FedEx might use tamper-evident security seals while also X-raying each individual box in a shipment and securing the aircraft door, cargo container and individual units separately. Digital tracking methods boost security. As cargo theft becomes increasingly sophisticated, real-time digital tracking and record keeping help users track their shipments and deter bad actors by greatly narrowing their windows of opportunity to commit theft. A culture of safety demands investment Some of the above measures unavoidably add to the time and cost of shipping goods within the network. However, the pandemic has taught us some difficult yet important, long lasting lessons. There are no two ways about it: building a secure and resilient network requires strong and concerted community, national and international investment. We’re all fundamentally reliant on the supply chains around us. With this in mind, we must foster awareness about why a culture of safety throughout our supply chains is critical, and even more so in this dynamic online environment. If we continue to improve the security of Australia’s supply chain infrastructure, everyone wins.  About Peter Langley Peter Langley, Vice President Australasia, is responsible for driving the business strategy and leading the operations of FedEx Express and TNT in Australia, New Zealand and the Pacific Islands. About FedEx Express FedEx Express is the world’s largest express transportation company, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and- ground network to speed delivery of time-sensitive shipments by a definite time and date supported by a money- back guarantee.   64 RETAIL WORLD JAN/FEB, 2021 


































































































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