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Supply chain and logistics management is a critical success factor in developing an organisation's competitive edge. It is no longer just a means and process of connecting with markets but rather a key component of differentiation. According to surveys of senior executives undertaken by the Supply Chain and Logistics Association of Australia (SCLAA), there appears to be little consistency regarding the strategy adopted by organisations to develop world class processes. This paper explores Australian supply chain and logistics management by drawing on several organisation cases.
Introduction
Research undertaken by Gartner at the end of 2011 indicates that Australian supply chain executives were focused predominantly on cost and the customer as key strategic areas to enhance their businesses. At this time there was a significant amount of uncertainty; with the outlook cooling on global commodity markets and organisations looking more closely at their supply networks to keep costs low and improve efficiency.1 Figure 1 below illustrates some results of the Gartner survey.
The survey results highlight the importance placed on productivity, costs and customers. All three of these areas could be significantly influenced through effective use of supply chain management and logistics world class principles.
Of further interest, however, is to explore how these organisations view their supply networks. Three clear categories dominate most organisations' strategic intent. Firstly viewing supply chain and logistics as strategic; second is viewing it as a cost of doing business, and third is identifying it as a source of competitive advantage. As indicated in Figure 2, each of the three categories is regarded with almost equal importance.
Moreover, there are industry preferences for each of the categories. Retailers, wholesalers and process manufacturers see supply chain and logistics as a source of differentiation. Mining and other primary industries and manufacturers see it more as cost of doing business. However, supply chain and logistics services, eg, 3PLs regard it as strategic.1
These perspectives will be explored further by identifying how supply chains integrate into doing business in the relevant industry using organisation case examples. In particular, successful organisations will be identified to determine their strategy in developing a competitive edge.
Most international organisations have faced similar situations to that faced by Australian companies during the last decade. Some argue that Australia has...