Page 86 - Conveniece World Magazine Nov/Dec 2020

SUPPLY CHAIN & LOGISTICS FROM PAGE 83 strategy to build customer loyalty and competitive advantage, while others are pursuing different goals. Whatever their purpose, all companies understand supply chain transparency is an enabler for improved visibility, more effective traceability and greater agility in volatile times – such as a pandemic. This radical change in thinking is the result of various factors. There have been technological advances, increased pressure from governments, consumers and other stakeholders wanting to know more about their own particular area of interest, and Covid-19 has put supply chains firmly under the microscope with the very real threat of essential-supply shortages. For example: • Changes in regulations have raised awareness, triggered increased due diligence and revealed a need for improved supply chain reporting. • The rise in counterfeit products has driven a need for improved visibility throughout the supply chain to ensure authentic product provenance. • The drive for efficiency and cost saving created a need for more sharing of information among partner organisations and stakeholders. • Consumers are demanding transparency regarding food origins, methods of cultivation and production, sustainability and slave labour. • The appearance of a pandemic brought about unusual supply chain patterns, including the ACCC approval of cross-company collaboration. • Globalisation of supply chains has 84 CONVENIENCE WORLD NOV/DEC, 2020 increased the threat of disease transmission and bio-contamination, with regulation and effective traceability key elements in the response mechanism. In the middle of a pandemic, product traceability is arguably more important than ever. Companies are facing pressure to improve visibility in complex multi-tier supply chains, and the recent increased demand for supply chain traceability has prompted both industry and governments to initiate projects and pilots across many sectors. In response to industry concern that some of these initiatives may lead to duplication and the creation of multiple frameworks, GS1 Australia, the leading provider of standards and solutions for more than 20 industry sectors, has launched an advisory group dedicated to the issue of supply chain traceability. With GS1 barcodes being scanned more than six billion times every day and a specific set of GS1 standards already used by the foodservice industry for traceability, the company is certainly well-placed to lead that discussion. Encouraging cross talk The National GS1 Traceability Advisory Group (NGTAG) consists of GS1 members, relevant federal and state government representatives, and industry peak bodies who will be making recommendations regarding the need for supply chain traceability standards and priorities. The group’s stated objectives include informing GS1 Australia on the requirements of industry and government relating to traceability standards, and communicating with industry and government on supply chain traceability priorities in this country. At the inaugural meeting on 10 September, chaired by GS1 Australia CEO Maria Palazzolo, more than 60 senior executives from government and industry discussed the way forward for enhanced traceability in Australia. “This meeting is not only very timely, but very, very important,” Ms PalazzoIo said in her opening address. “Our world is continuing to evolve in many strange ways, but one thing is certain: consumers are becoming much more curious, and much more demanding around transparency and the safety of the goods they purchase and consume. “Today, full traceability across the supply chain is no longer a ‘nice to have’. It’s actually a must-have,” she said. Outlining the group’s purpose, Woolworths business partner (technology), and NGTAG Co-chair Ram Akella said: “It’s a matter of understanding what’s missing and how we can bring the different pieces of the puzzle together. It’s about exploring how we can make things work together and how to work with other entities in the same supply chain. “We’ll be discussing what’s important from a customer point of view, what’s important from a regulation and government point of view, and how changes can be made cost-effectively at the same time.” Following the inaugural meeting, the group identified key use cases confirming the need for enhanced supply chain traceability. These include: • Improved food and consumer safety through the availability of more robust, accurate and complete product data. • Product authentication through accurate and rapid detection of counterfeit products and instances of unauthorised distribution. • The need for improved end-to- end product visibility across the supply chain, to deliver greater transparency between trading partners and consumers. • More efficient and accurate regulatory compliance, including provenance, country of origin and modern slavery. • Greater supply chain efficiency through cost savings resulting from simplified and automated business processes such as order to cash, inventory management, order fulfilment and returns management.