P.PSH.1446 - Supply chain digitalization - Telstra IBM Garage sprint
Industry platform approach to accelerate supply chain digitisation in the red meat sector.
| Project start date: | 14 March 2023 |
| Project end date: | 25 February 2024 |
| Publication date: | 15 May 2024 |
| Project status: | Completed |
| Livestock species: | Grain-fed Cattle, Grass-fed Cattle, Sheep, Goat, Lamb |
| Relevant regions: | National |
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Summary
In many industries, cross-supply chain digitisation increases revenue, productivity, resilience and ability to meet obligations including Environmental Social and Governance (ESG). Supply chain digitisation in the red meat industry is sporadic and fragmented, restricting the industry’s ability to capture value. This project conducted research into the value of an industry platform approach to accelerate supply chain digitisation in the red meat sector and conceptualised an indicative investment case and roadmap to implement and such a platform.
Objectives
1. Analysis of the desirability, viability, and feasibility of four key value propositions with the potential to deliver significant value to the red meat industry, and drive adoption of cross-industry digitisation.
2. Identify any key cross-industry data infrastructure required to support the propositions.
3. Identification of potential ownership and governance models that are required to support the propositions.
4. Creation of a commercial model for the purposes of developing an investment case Indicative roadmap to commercial launch.
5. Creation of an investment case template detailing the core business model components for presentation to relevant stakeholders.
Key findings
Engagement results demonstrated a high level of desirability for a cohesive digital future state, but the willingness of individual actors to pay requires further validated.
Estimated $1.18b of value created by a red meat supply chain digital platform was identified based on the Value Propositions of Digital Processes for Market Access ($247m), Measuring Evidence and Certification of Sustainability ($252m), New Sustainability and Risk-based Financial Products ($632m), and On-Farm Productivity ($57m).
Benefits to industry
The key benefit from the project is the identification of priority use cases and calculation of estimated benefits from each of the value propositions. Estimating the size of potential benefits from embracing digitisation, while also sketching a path to implementing a data sharing platform which would enable the value creation, helps to inform discussions surrounding the cost/benefit of investment in digital infrastructure.
MLA action
MLA using the outcomes of this project to inform new investments.
Future research
Future research/activities should focus on testing implementation of specific use-cases with interested parties, thereby proving the creation of benefits (de-risking) and establishing participant’s willingness to pay for implementation of an industry-wide platform.
More information
| Project manager: | Rhys Pirie |
| Contact email: | reports@mla.com.au |
| Primary researcher: | Telstra Corporation |
