Have you ever walked into a shop and found that they’ve run out of what you’re looking for? Maybe they didn’t have your size, or the brand you like? How did that make you feel? For most people, this is frustrating. It means visiting a different shop or delaying your purchase and ordering online. The data tells us that retailers don’t get a second chance with customers. The lost sales from this sort of supply chain failure are enormous. In fact, we estimate that for Australian retailers and consumer goods companies alone, there is $4 billion lost each year through a lack of supply chain visibility.
If you think that your experience as a customer is bad, spare a thought for the folks in supply chain who are trying to fix this problem. The complexity they face is enormous. Just looking at the phone in your hand, its components come from hundreds of suppliers located on just about every continent in the world.
Wrangling those freight orders to bring your phone to life, is a bit like trying to order 1000 taxi rides at once… from 40 different companies… with drivers who speak different languages… and who can only communicate with you by phone, email and spreadsheet. Sounds far-fetched?
Well, over the last 2 years, we’ve spent time with over 300 enterprise customers to deeply understand what might be holding us back from collaborating more effectively. We’ve learned that it’s really difficult to securely share the right information with your trading partners and that control of data is a major concern for most companies. We’ve also seen first-hand that supply chain teams across the country are still trapped in highly manual and inefficient workflows.
We think there’s a better way and so we’ve also started to build, test and learn with our customers, prototyping solutions to these problems to imagine the future of the Connected Supply Chain.
Think your business could benefit from a better connected supply chain?
Contact us to learn more about joining our industry incubation program.
Our researchOur research, conducted with 200 supply chain professionals around Australia, reveals an overwhelming belief that the data-driven approach will deliver tangible business benefits at every stage on the supply chain journey. Improvements in traditional supply chain metrics like inventory turnover, delivery in full on time (DIFOT) and network optimisation as well as general improvements in business profitability and competitiveness are just a few of the benefits cited by our respondents.
Learn more about how we work at Telstra Labs