AUSTRALIA flexibility offered by its regional supply chain networks , Lesser says . The business is looking to supply chain innovation as a way to reach new customers , or reach existing customers in new ways . “ Typically we would use our traditional plant network to meet most of the needs of one country , but now we ’ re re-visualising our supply chain and exploring new channels ,” he says . “ The key is to look at the big picture – in some situations there might be an alternative plant which appears less straight-forward to use but ends up delivering lower costs or other benefits to the overall operation .”
Orica didn ’ t wait until the mining downturn before it started to put these processes in place . Instead of resting on its laurels it had the foresight to look to the future .
The business relies on SAP for Enterprise Resource Planning , along with Demand Solutions planning software which assists with statistical forecasting . At the beginning of the boom the business was already looking at ways to improve its capability , which saw its North American operations implement process integration improvements in its sales and operation planning . This involved centralising procurement to gain leverage with its suppliers , along with embracing the Lean Six Sigma process methodology throughout the organisation .
After success in North America ,
“ With the turn in the MINING MARKET we knew the needs of our customers would change and we needed to be prepared to handle that change .”
– Steven Lesser , Head of Supply Chain at Orica , Australia , Pacific & Indonesia www . orica . com 71