Supply chain decarbonisation and optimisation


Supply chain decarbonisation and optimisation

Operations excellence

We understand the pressures and problems faced when managing the complexities of the supply chain, and we excel in identifying and implementing the efficiencies that drive superior, sustained supply chain performance. This extends to thinking about ethical sourcing and value chain emissions management, both of which are becoming critical issues for all companies.

Moving towards profitability

Moving products and services from concept to customer requires constant attention and continuous innovation. Bottlenecks and breakpoints can introduce excess costs, waste and customer dissatisfaction. A lean and efficient supply chain system will deliver constant value, helping you deliver the right product or service at the right price. With the supply chain typically accounting for 80 per cent of total business costs and driving working capital performance, creating a more efficient supply chain is at the core of improved profitability and can create significant commercial advantage.

However, designing and implementing efficient systems and processes across the supply chain, including interconnections spanning organisational boundaries, can be a complex undertaking. These complexities are increasingly exacerbated by competing demands such as for low-cost country sourcing versus minimising CO2 emissions; or reducing the number of supply chain entities versus increasing customer service levels, to just name a few. This risk is magnified as sectors compete for scarce resources to service the booming offshore markets of China and India in particular.

Moving towards sustainability

As the demands of investors, communities, governments and customers increase with respect to numerous aspects across the environment, social and governance spectrum, fully understanding your supply chain is becoming critical. Ignorance of poor practices upstream or over emissions downstream is no longer a responsibility that companies can shirk.

Having clear insight is, however, a significant challenge. There is limited visibility of supply networks beyond direct suppliers, restricting the ability of organisations to understand where risks may exist.

Deloitte’s IlluminateTM solution illuminates supply networks and exposures through augmented intelligence… to improve resilience of supply and enable effective risk mitigation.

Exposures are contextualised into risks across four categories, with actionable insights providing the key next steps to understand and mitigate these risks.

Environmental and social
  • Exposures that can have adverse environmental or societal impacts, which could lead to reputational or financial damage. Understanding value chain emissions and enabling effective Scope 3 reporting and monitoring.
Governance and regulation
  • Exposures that highlight failure to comply with governance or regulatory requirements, which may
    lead to supply disruptions or failures.
  • Exposures that can impact the operations of third-party suppliers, which may affect the integrity or
    security of supply.
Foreign influence
  • Exposures that highlight links to foreign state-owned enterprises that may attempt to influence supply
    networks against the best interests of certain organisations.

How Deloitte can help

At Deloitte, we understand the pressures and problems faced when managing the complexities of the supply chain, and we excel at identifying and implementing the efficiencies that drive superior, sustained supply chain performance. Backed by the strength of a global network of supply chain professionals, Deloitte’s Supply Chain Strategy Centre of Excellence brings together our latest supply chain ideas and innovations. The Centre of Excellence helps to ensure our clients profit from the most innovative supply chain concepts, skills and capabilities, such as:

  • The Deloitte Supply Chain Value Map, which can assist with identifying the elements of your supply chain performance that are most sensitive to driving shareholder value and how they can most effectively be improved
  • Our Supply Chain Maturity Models and Deloitte Integrated Supply Chain provide frameworks for each supply chain process enabling rapid benchmarking of company performance against peers, across both leading and lagging indicators of performance
  • Our approach to Supply Chain Optimisation Modelling assesses alternate process configurations to determine efficient, responsive and profitable ways to allocate scarce resources (capacity, materially, people time and money) and meet customer demands
  • Our proprietary Supply Chain Assessment Tool, which contains robust analytic tools and techniques that quickly enable us to analyse data and understand the root causes of performance issues and to develop a customised improvement path for your company.

Our teams across Australia are equipped with the experience and skills required to tailor strategic and tactical design and implementation solutions to improve your supply chain operations. Furthermore, we are uniquely positioned through our ability to combine Supply Chain expertise with Technology and Enterprise Data professionals, to ensure our solutions are fully integrated with our clients’ businesses once we leave.

  • Supply chain strategy
  • Supply chain and logistics optimisation
  • Sales and operations planning
  • Inventory management optimisation
  • Deloitte IlluminateTM
  • Value chain emissions strategy

Contact us

Sean McClowry

Sean McClowry

Partner, Deloitte Digital

Sean McClowry is a partner in Deloitte Digital and is taking a leadership role on Sustainability and Climate offerings for Consulting. Sean leads work in the area of Digital Twins and Simulation, driv... More

John O’Brien

John O’Brien

Partner, Energy, Climate & Sustainability Deloitte AP

John has 30 years’ experience in the Australian and global clean energy and clean technology sectors and now leads Deloitte’s decarbonisation work in Australia. He works extensively with global client... More