What Happened
The Greek philosopher Heraclitus said it 2,500 years ago: change is the only constant. It’s never been more relevant than in supply chain management over the last few years.
Between 2020 and 2022, NZ businesses responded to unprecedented supply chain disruption with survival tactics:
2–3x
Inventory levels above historical norms
Elevated
Shipping costs and labour expenses accepted
Availability
Prioritised over profitability
These were rational responses to an irrational situation. The problem is that many businesses never recalibrated. The tactics that ensured survival in 2021 are now eroding margins, tying up cash, and leaving businesses exposed to a very different set of risks: declining demand, persistent inflation, excess inventory, and high interest rates.
“The tactics which ensured success yesterday may well lead to our demise tomorrow.”
Six Quick Wins
Six areas where NZ businesses can recalibrate their supply chains and recover margin quickly.
01.Inventory Control
Businesses that doubled or tripled inventory during COVID are now sitting on excess stock that’s tying up cash, filling warehouses, and trending toward obsolescence. The first step is visibility — knowing exactly what you have, where it is, and how fast it’s moving.
RFID for inventory control02.Track & Trace Visibility
During the disruption, most businesses accepted that they couldn’t see where their stock was. That’s no longer acceptable. Real-time visibility across your supply chain — from supplier to warehouse to customer — is the foundation for every other improvement.
Visibility & traceability03.Warehouse Optimisation
Many businesses expanded warehouse space to accommodate pandemic inventory levels. Now the question is whether you’re using that space efficiently — or paying for air. Layout, slotting, pick paths, and automation all offer quick returns.
Warehouse design & optimisation04.Load Optimisation
Freight costs spiked during COVID and haven’t fully normalised. Load optimisation — fitting more product into fewer shipments — is one of the fastest ways to reduce transport spend. Software can identify savings most businesses don’t know they’re leaving on the table.
Load & pack optimisation05.Cost to Serve
During the growth-at-all-costs phase, many businesses lost sight of which customers and products were actually profitable. A cost-to-serve analysis reveals where you’re making money and where you’re subsidising unprofitable activity.
SC consulting06.Inventory Optimisation
Beyond control (knowing what you have), optimisation means carrying the right stock in the right quantities. Safety stock levels set during disruption are almost certainly wrong for today’s demand patterns. Recalibrating delivers immediate cash flow improvement.
Inventory optimisationWhere to Start
You don’t need to tackle all six at once. Start with inventory control and visibility — they’re diagnostic and will quickly reveal where the biggest opportunities are in your specific business. Then prioritise based on impact and effort.
Take a SC Maturity Assessment
