Back to R&D main

P.PSH.1223 - ACC Digital Value Chain strategy development and Digital Officer (Processing Operations)

Australian Country Choice are using supply chain data to make better business decisions.

Project start date: 30 November 2019
Project end date: 29 October 2023
Publication date: 09 April 2024
Project status: Completed
Livestock species: Grain-fed Cattle
Relevant regions: National, International
Download Report (0.3 MB)

Summary

A Co-Innovation Manager at Australian Country Choice (ACC) has driven the development and alignment of the processing/factory data strategy with that of the farm/feedlot and marketing strategies to build end-to-end data capability at ACC.

Objectives

Develop a range of data collection, evaluation and reporting systems to provide greater visibility to decision makers.

Key findings

Access to data and reporting systems has assisted ACC:
- Reduced boning room manning through better presentation and analysis of boning room staffing levels.
- Provided visibility of reworked cartons to identify areas where rework is most commonly occurring to allow the operation management team to review and meet specifications first time more frequently.
- Improvement in management of operational efficiency through identification of late loadouts and missed delivered in full on time (DIFOT) to improve customer satisfaction.
- Reduced aged offal stocks.
- Introduced trend reporting on boning room yields to better understand room performance, particularly after major upgrades.
- Reduction in the incidence of dark cutting.

Benefits to industry

Benefits to industry include:
• Improving cost control within red meat businesses through utilising operational data to understand where unnecessary costs exist. This is in contrast to the traditional accounting approach of looking at a profit and loss statement and comparing to a budgeted figure which may just be what the industry has always done.
• Identification and quantifying of additional revenue opportunities. Digital tools and harnessing the businesses historical data allow businesses to quickly identify the opportunities it may not already be undertaking. This is particularly important given the rapid changes we see in global markets today.
• Providing better rationales to support capital expenditure decisions within an organisation. The capture of data and use of forecasting tools allows us to challenge those beliefs, particularly around capital expenditure and make more targeted decisions.
• The use of digital tools at the factory level provides benefits to the industry as a whole with feedback provided on animal health and carcase traits provided upstream improving breeding decisions, antibiotic treatments and feeding regimes. The outcome of this is improved carcase weights, yields, health and consequently revenue at the producer level.

MLA action

- Produce a short five minute video.
- Highlight learnings at a Co-Innovation network meeting.
- Include in MLA Communications, Feedback Magazine and The Weekly articles.

Future research

The impending commercial use of OM carcase technologies provides opportunity to integrate a new data point into our sets and analyse how these technologies can add value for processors, exporters and producers.

More information

Project manager: Garry McAlister
Contact email: reports@mla.com.au
Primary researcher: Australian Country Choice Pty Ltd