Twenty supply chain and logistics managers from the Drinks Association’s member companies and service suppliers came together for the first time this year at the Carlton Brewhouse in Abbotsford, Melbourne, for a jam-packed day of valuable, insightful presentations.
The Drinks Association’s Supply Chain & Logistics Forum aims to contribute to the improvement and optimisation of supply chain and logistics processes within member organisations through:
- Networking
- Knowledge sharing
- Industry updates
- Problem-solving
- Education
GS1 – The rise of the 2D barcode
Marcel Sieira, Chief Customer Officer, and Andrew Steele, Director - Retail at GS1 Australia, kicked off the day with a tale about love. They shared how the barcode and the internet joined forces many years ago and how this connection has evolved over time.
The new hero, however, is the 2D barcode which aims to befriend all consumer packaged goods companies and retailers around the world to help them to:
- Better engage with consumers digitally
- Decrease packaging and food waste
- Enhance end-to-end traceability
- Fight counterfeits
- Improve inventory management
- Increase trust in claims via links products to credentials
The retail industry, globally, has set a date for all retail point-of-sale (POS) systems to be able to scan 2D barcodes by 2027. Retailer discussions and engagement are underway, but it will take time.
Coles and Endeavour Group are currently in the testing phase, and ALM is in an exploratory phase with accredited POS vendors.
Steele explained that as technology advances, 2D barcodes are likely to remain relevant and adaptable to new requirements. Investing in 2D barcodes now can help businesses prepare for future changes in the industry and technology landscape.
GS1 is looking to pilot with Australian liquor companies to support the 2D barcodes journey with training, guides and tools, and advisory services.
William Grant & Sons and AVL – Content for future forums discussion
Next up, forum Co-chair Jeff Harper from William Grant & Sons and long-term forum member Tim Green from Australian Vintage Limited (AVL) led a session on Supply Chain & Logistics Forum Purpose and Principles. They also facilitated an interactive session to discuss the content for future forums. This session addressed areas of interest and provided valuable education opportunities for all involved.
Mainfreight – Consolidation opportunities
Brad Greer, National Business Manager for Mainfreight, then took the stage to provide an insightful review of order consolidation at distribution centres and outbound delivery challenges. Brad’s presentation used Mainfreight data collected over the past five years which detailed opportunities for improvement.
Specifically:
- Influences
1. SKU Complexity
2. Order frequency and the opportunities to consolidate.
3. Stock holdings
- Impacts
1. Stock age – across beverage customers,10% of stock is older than six months with an average of 423 days.
2. Consolidation – 31% of orders have the opportunity to be consolidated.
3. Freight costs – building and consolidating loads to maximise freight cost efficiencies.
- Tools to monitor
1. ABC analysis
2. Weight break and location analysis
3. Consolidation analysis
Coles Liquor – Advancements in forecasting and planning
Coles Liquor’s Head of Liquor Supply Chain, Andy Hampson, and James Brodie, Supply Chain Manager Spirits, Beer and RTDs provided an overview of the group’s strategic direction and technological advancements in forecasting and planning. They highlighted the need for open and honest relationships with suppliers as they work through this transformation period.
Advantage Australia – Priorities for supplier and retailer relationships
The day’s final presentation was from Advantage Australia’s Mark Emery, Director Client Services, who presented the key themes from the 2023 Advantage Engagement Survey where sustainability was a recurring theme.
Emery also explained that globally the top four priorities for both the supplier and the retailer are to:
1. Build trust
2. Easy collaboration
3. Support strategic goals
4. Have a collaborative business planning process
Starward Whisky Tour
To round out the day, the group went to the Starward Whisky facility in Port Melbourne for a fascinating guided tour of the whisky-making process. Hosted by Starward’s CEO, Simon Marton, the group learned about Starward’s unique production methods, followed by a special structured tasting of their award-winning whiskies.
The day concluded with a casual pub dinner allowing members to connect and build valuable Supply Chain & Logistics relationships.
Thank you to everyone who joined us including Mark Alexander and Tim Green (AVL), Courtney Rohde (Asahi Beverages), Justin Gibson (Bacardi-Martini), Luke Meli (Brown-Forman), Jeff Harper (William Grant & Sons), Carlee McGowan (Pernod Ricard Winemakers), Paul Finucci (Drinkworks), David Alpen (Treasury Wine Estates), David Orton (Campari), Orlaith Spooner (CCEP), Johann Franzsen (Hillebrand Gori), Alfred Battiato, Jamie Single and Kylie Nicol, (BevChain), Brad Greer and Tinika Tipene (Mainfreight), and Andrew Steele and Marcel Sieira, (GS1).
The Drinks Association would also like to thank Asahi for generously hosting the forum at the Carlton Brewhouse.
We look forward to seeing everyone at the next Supply Chain & Logistics Forum. If you’d like further information on how you can be involved, please contact Drinks Association General Manager, Rachel Wormald.