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Investigating the Potential Benefits of Enhanced End to End Supply Chain Visibility

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Publication no: AP-R538-17 Pages: 51
Published: 07 March 2017


This report examines the benefits of using end-to-end supply chain visibility technologies and considers issues relating to leadership and practical adoption of the technology.

The project was undertaken with the Australian Logistics Council (ALC) Supply Chain Standards Working Group and GS1 Australia. Pilot studies with TOLL, Arrium OneSteel and Nestlé assessed the impact of adoption of the technology based on GS1 global data standards (GDS).

Adoption of these technologies and common identifiers for goods, transport equipment, places and events, allow activities in the supply chain to be viewed from supplier to customer, including: freight transport assets; pick up storage and delivery locations; and events occurring throughout shipment such as traffic congestion, accidents, or other delays.

The pilots measured benefits of efficiency, integrity, visibility and innovation. Costs were assessed across the variables of preparation, development and implementation.

The pilots show that the benefits are not evenly dispersed across the supply chain network. Costs and added complexity for small transport suppliers countervail benefits in the short term, where bespoke legacy systems are involved. Larger transport suppliers experienced immediate and significant benefits with enhanced business processes and dynamic capabilities, including innovation, already apparent.

The benefits to Australian manufacturers, producers and traders justify an industry-based Supply Chain Visibility Strategy to promulgate adoption. Governments, the standards body and industry peak bodies will need to work together to execute the strategy which is paced to take into consideration the needs of the fragmented freight transport industry. 


Table of Contents

Glossary of Terms
Summary
1. Introduction
  • 1.1 Recognising the Importance of Standards
  • 1.2 Achieving Visibility Across Modes in a Supply Chain
  • 1.3 What is Driving the Need for Supply Chain Visibility?
  • 1.4 Objectives of the Project
2. Methodological Framework
  • 2.1 IT and Business Value
  • 2.2 Methodology Applied 
  • 2.3 Key Participants
3. Case Studies
  • 3.1 International Case Studies
  • 3.2 Australian Case Studies
  • 3.3 Arrium OneSteel
  • 3.3.1 Delivery of Bundled Steel from OneSteel Rod, Bar and Wire plants
  • 3.3.2 Delivery of Processed Steel from OneSteel Metalcentre/ARC/OSR
  • 3.3.3 Benefits
  • 3.3.4 Impact on Businesses
  • 3.4 Nestlé
  • 3.4.1 Anticipated Benefits
  • 3.4.2 Impact on the Businesses
  • 3.5 TOLL
  • 3.5.1 Set up for the pilot
  • 3.5.2 GS1 foundational keys and master data
  • 3.5.3 Messages in the pilot
  • 3.5.4 Reporting systems
  • 3.5.5 Benefits
  • 3.5.6 Test of the EPCIS Standard in An Industry Setting
  • 3.5.7 Impact on the Businesses
4. Findings
  • 4.1 Benefits of GDS Application
  • 4.2 Costs of Adoption of GDS
  • 4.2.1 Preparation
  • 4.2.2 Development
  • 4.2.3 Implementation
  • 4.2.4 Membership of Standards Body
  • 4.3 Development of the Standards in the T&L Industry
  • 4.4 Learnings from the Pilots
  • 4.5 Application of the GDS to Regulatory Activity
  • 4.5.1 Benefits of Improved Supply Chain Visibility to Road Transport Agencies
5. Promulgation of GDS in the Transport and Logistics Industry
  • 5.1 Is There a T&L SME Solution?
  • 5.2 Voluntary Introduction with Self-Regulation or Mandatory Approaches
  • 5.3 Role of Governments
  • 5.4 Leadership to Encourage the Use of End to End Supply Chain Visibility
6. Conclusions and Recommendations
References
Appendix A GS1 Supply Chain Visibility System

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