Whitepaper: COVID-19 Supply Chain Navigation Series - Articles 1-3

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#1 GLOBAL STORY TO DATE

This is the first of a three-part series exploring the health and economic impacts of COVID-19 to date.

How has COVID-19 impacted countries and supply chains around the world, and what does this mean for Australia?

As businesses begin to reopen, we ask just how well do we understand what the future holds?

KEY POINTS
  • Australia’s early response has successfully flattened the curve
  • The Government’s three-step plan to reopen the economy has created optimism
  • The Australian economic outlook is challenging with many uncertainties B
  • Businesses must be prepared and agile in a fluid economic landscape to ensure survival
  • Supply chain resilience and scenario planning capabilities are key

#2 INDUSTRY ASSESSMENT

In this second of our three-part series, we examine how some of our industries have fared during the recent COVID-19 period. This includes a reflection on what sectors have responded well and what lessons we can take from their experiences. 

KEY POINTS
  • There is demand uncertainty, both within and across industry sectors, highlighting the need for scenario planning and the capability to respond
  • Industries with high rigid cost bases have struggled to adapt to the fluctuation of the market
  • There have been significant industry and supply chain adaptations – businesses need to consider their supply chain operating models, both in the short and long-term
  • Online retail is thriving, and there a glimpses of opportunity for the Australian manufacturing industry

#3 SUPPLY CHAIN: TODAY & TOMORROW

In this final whitepaper in this series, we review just how unclear the path forward is and why supply chain scenario planning is so critical for success and survival. We also outline an approach that can deliver greater supply chain resilience and embed the capability to adapt effectively to the continually changing environment.

KEY POINTS
  • The road to recovery is unclear, with published health and economic metric forecasts exhibiting broad ranges of uncertainty
  • Robust scenario planning is an important capability to prepare your business to navigate the upcoming period
  • The OODA (Observe, Orient, Decide, Act) model is one such framework to enable effective decision-making to be made more rapidly than the rate the environment changes – staying ahead of the curve
  • In general, scenario planning is not a mature, well established capability in Australian industry –  many organisations will likely need to invest in people, processes and technology to effectively realise this capability 
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Testimonials

GRA has been working with us off and on for over four years... I wouldn’t hesitate to recommend them.

– Scott Coulter, Chief Operating Officer, Comvita

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)