International Supply Chain Benchmarking

Project summary

2020-21 was a big year for international supply chain benchmarking project, completing deep dives into the grain and cement supply chains, and development of the CSIRO supply chain benchmarking dashboard. Benchmarking insights help evaluate performance, identify areas of opportunity to improve competitiveness, and help assess the potential impacts of disruptions. Building on the 2019 pilot study, L.E.K. Consulting completed deep dive benchmarking studies into cement and grain (wheat) supply chains. The studies collected and analysed domestic and international benchmarking data, as well as insights from consultation with Australian industry stakeholders.

For grain, key issues included rail freight capacity, receival site efficiency and low port utilisation, which were contributing towards higher supply chain costs. These costs are close to 40 per cent of the delivered cost of wheat, with, Western Australia more competitive than other Australian states due to its streamlined and predominantly export-oriented supply chain, which has benefited from ongoing rail, road and port infrastructure investment.

For cement, key issues included road transport driver supply, coastal shipping legislation and regulation, and port capacity and loading efficiency, which were contributing towards higher supply chain costs. Supply chain costs – of which 55 per cent is freight - comprise up to 35 per cent of the price of cement ($470-$660m yearly). Australia has a higher reliance on cement imports than the US and France, and makes extensive use of intermediate storage (depots). This contrasts with more direct delivery models employed in the US (shorter haulage distances) and France (extensive plant network). The reports are available at on the Benchmarking page.

Interactive benchmarking tool

In December 2020, work commenced on the CSIRO Supply Chain Benchmarking Dashboard, to deliver a comprehensive evidence base for Australian supply chain performance and further international comparisons.

The prototype dashboard – now available for use at https://benchmark.transit.csiro.au – provides insights on over 100 Australian commodity supply chains across the road and rail networks. The project leverages CSIRO’s Transport Network Strategic Investment Tool (TraNSIT) to derive models and insights across a range of measures including supply chain costs and volumes, and trip distances and segments. In developing the prototype, the project team engaged with over 100 organisations to demonstrate the prototype, validate data, and get feedback on content, design, and functionality. To date, feedback has been overwhelmingly positive.

Further dashboard enhancements are underway, including the incorporation of coastal shipping models, new commodities, and improved geographic filtering and user interface. Such enhancements aim to provide best value to industry, research, and government at all levels.