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Fragility of supply chains in acute focus this year

Fragility of supply chains in acute focus this year

June 21, 2022

To win any of the four awards in the Supplier category at the Australian Drinks Awards is a vote of kudos for Drinks Association member companies. However, the fragility of supply chains is in acute focus this year. For the third year running, global challenges persist with supply chains disrupted as nations continue to manage COVID outbreaks, energy prices soaring along with inflation and shipping costs continue to rise.

These past three years, businesses have had to be well prepared for unexpected challenges with plans A, B and C to hand. They have had to be nimble, mobile and adaptable.

Advantage Australia’s General Manager, Steve Andrews explains, “Over the past two years, retailers and wholesalers have been empathetic to the challenges of increased volatility on both supply and demand, however expectations on ‘how’ suppliers manage this remain high. The capability for longer-term yet adaptable planning is re-emerging as a clear differentiator, and this coupled with continued transparent, proactive communication will define best-in-class logistics collaboration.”

The winners of the Supplier Awards are determined via Advantage Australia's Engagement Program of on- and off-premise retailers.

“A supplier will win the Supply Chain Management award based on the highest Advantage Score by combining all supply chain measures," Mr Andrews explains.

Specifically, this means:
• Aligns with Advantage Australia’s key supply chain performance metrics
• Delivers orders at the date and time requested
• Delivers complete orders/high percentage fill rate
• Builds strong relationships with supply chain teams
• Proactive in implementing practices and processes that improve total supply chain efficiency
• Proactively works with Advantage Australia on forecasting to prevent out-of-stocks
• Provides timely, proactive communication about order status, adjustments, and changes
• Provides easy to reach, responsive customer support service

“The award recognises excellence in the capabilities and behaviours for managing both short- and longer-term supply complexities in collaboration with retailers and wholesalers, as well as the ability to consistently drive high quality service outcomes and deliverables,” says Mr Andrews.

Australian Vintage Limited was the recipient of the Supply Chain Management Award last year and at the time, General Manager for Australia and New Zealand, Jeff Howlett, said: “We’re really proud to receive this trophy and appreciate all the feedback we receive from Advantage. It’s evidence of all the hard work our incredible team has been doing and a reflection of the consistent, collaborative and innovative supply chain management within the business.

“Efficient supply chain management is key to company success and customer satisfaction. We are excited and committed to continuing to build a transparent and traceable supply chain that upholds high standards of business conduct and respect for human rights and the environment.”

The award is sponsored by Drinks Association Corporate Partner, GS1, a partnership intended to drive industry standards, and improve business and supply chain efficiency in the drinks industry.

GS1 supports the Australian liquor industry in many ways, including educating and supporting suppliers to meet trading partner and industry requirements. Their services include Customer Support Desk, Barcode Check, National Product Catalogue, Smart Media and site visits where appropriate.

"The GS1 system of standards is the most widely used in supply chains around the world, so there is a natural alignment between our core business and the recognition of top performers in supply chain management," explained GS1 Executive Director and Chief Executive Officer Maria Palazzolo.

"The award is important because supply chain management has become increasingly critical to business success. A recent Deloitte study showed that 79 per cent of companies with high-performing supply chains, achieved above average revenue growth within their industries.

"An efficient supply chain leads to a better customer experience which has a flow-on for sales activity, but also a reduction in claims and other disappointments which can tarnish a business relationship. This keeps costs down and drives improved business performance."

With 116 GS1 member organisations covering over 150 countries, GS1 Australia helps suppliers export and import from around the world.
The Australian Drinks Awards will be hosted Thursday, 28 July.

“The Drinks Association hosts a wonderful night where industry comes together to celebrate the achievements of the year just gone. The past year has seen many challenges for businesses large and small during the pandemic. We look forward to another year working together," Ms Palazzolo said.

GS1 is a sponsor of the Australian Drinks Awards and Corporate Partner of the Drinks Association. Advantage Australia is a Corporate Partner and Australian Vintage Limited is a Category One Member.



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