Better supply chain logistics could save the Australian grocery industry up to A$950m (US$619.8m) a year, a new study has shown.
Go deeper with GlobalData
The $54bn industry spends an estimated $7.4bn each year on packaging and moving products from factories to store shelves, reported the Australian.
According to the Efficient Product Movement study, which was produced by the Australian Food and Grocery Council together with IBM Business Consulting, there are several ways to improve efficiency in the supply chain system.
Key recommendations made by the study include greater collaboration between suppliers and retailers on ways to improve efficiency of product movement, setting industry standards on things such as sizes of pallets, vehicle specifications and labelling formats, and using technology such as transport planning systems.
If the recommendations are adopted, the industry could see savings of at least $560m and up to $950m, according to Michael LaRoche of IBM Business Consulting Services.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAustralian Food and Grocery Council deputy chief executive Harris Boulton said dealing with supply chain issues would be a priority for the industry in the next two years.
