International Supply Chain Benchmarking
The international supply chain benchmarking project (the project) is a key Commonwealth action under the National Freight and Supply Chain Strategy.
It aims to evaluate Australia’s supply chain transport and logistics performance, using comprehensive data, modelling, and analysis, providing a shared evidence base to industry, research, community, and public sector stakeholders. Sustained delivery of this information will help support:
- informed strategic policy and planning, investment and regulation
- understanding of Australia’s efficiency and international competitiveness
- collaboration on priorities, challenges or key areas of interest, using benchmarking as a foundation for informed exploration
This project addresses the identified need to integrate freight and supply chain performance information, across regions and against international benchmarks. This need was highlighted in the industry-led Inquiry into National Freight and Supply Chain Priorities (2017), which recommended benchmarking key supply chain performance against international competitors as a priority action.
Comparing the movement of commodities, domestically and internationally, helps to identify areas for potential improvement or investment, to support Australia’s competitiveness and resilience.
An iterative approach: delivering through design
Since the pilot study in 2019, the project has taken an iterative approach to delivery of international benchmarking resources. This means that the research and tools can be refined according to user preferences and feedback, as well as emerging priorities.
|Pilot (2019)||In 2019 L.E.K. Consulting was engaged to undertake a pilot (proof of concept) international benchmarking study, developing a methodology, a framework for selecting nationally significant supply chains, and deep dives into the wine and household waste supply chains.|
|Measure Announced (2019)||The Mid-Year Financial Outlook measure National Freight and Supply Chain Strategy – additional funding was announced in December 2019, delivering further international benchmarking to meet the need identified by the inquiry.|
|Phase 2 (2020)||Following the successful pilot, the methodology was applied to deep dives on two further nationally significant supply chains: grain and cement.|
|Phase 3 (2020-21)||Engagement of CSIRO to develop a domestic benchmarking dashboard, building on the Transport Infrastructure Network Strategic Investment Tool (TraNSIT). The dashboard, anticipated for first release in June 2021, will show transport and logistics costs across a wide range of Australian commodity supply chains, and provide a robust, systematic basis for future international comparisons.|
Further work is planned using the following design principles.
Three design principles underpin the project’s activities:
- Meeting identified needs: working with public and industry stakeholders to ensure benchmarking makes a difference for decision makers and provides a positive value proposition for participants
- Feasible and viable process: designing a practical, repeatable process to deliver sustainable benefits
- Leveraging technology and resources: smart use of technical resources and collaboration
Three key activities underway
Building on a successful pilot study in 2019, the project is working to deliver a sustainable benchmarking system across three distinct activities which will contribute to an integrated benchmarking system, designed to inform performance evaluation and decision making, in a sustainable way over time.
Activity 1: Benchmarking Deep Dive Reviews
International benchmarking deep dive reviews involve working with stakeholders on significant priority supply chains or addressing key benchmarking insights, to act on opportunities or challenges, and review and refine the benchmarking value proposition.
Each deep dive uses available intelligence and close engagement to gain insights into nationally significant commodity supply chains and their performance. These targeted international comparisons provide insights into best practice and potential opportunities for reform, help fill information gaps, and inform the overall benchmarking method. To date, four deep dive reviews have been completed. This includes the 2019 pilot study focused on waste and wine, and deep dives completed in 2021 on grain and cement.
All deep dive reports are now available for download below.
|Household waste (2019)
PDF: 4.7 MB
PDF: 4.7 MB
PDF: 2.2 MB
XLSX: xx KB
PDF: 1.2 MB
XLSX: 2.4 MB
Activity 2: CSIRO Supply Chain Benchmarking Dashboard
Leveraging past projects involving the CSIRO TraNSIT facility, the Department has partnered with the CSIRO to:
- model and map Australian supply chain performance
- integrate supply chain information
- deliver an evidence base for further international comparison.
The project aims to provide a positive value proposition to all participants. Benefits for industry are provided through freight and supply chain performance insights, as well as greater shared understanding of potential pain points or opportunities. Benefits for governments are found in the comprehensive breakdown of Australian transport and logistics costs for different commodities and regions, supporting informed decision making.
The first prototype dashboard is in development, planned for release mid-2021.
Activity 3: International data collection
This project is to undertake a broad collection of international data to be integrated with the Australian data in the dashboard. International supply chain data will be collected, collated, and analysed to produce a series of international comparison assessments. This project is planned for completion between May and September 2021.
The Department acknowledges the generous participation of over 150 industry and other stakeholders, as part of the National Freight and Supply Chain Strategy. Such contributions make the project feasible, and help ensure its outputs deliver on the identified need for integrated data to evaluate Australia’s supply chains against international comparators.
For further information contact: email@example.com