When the economy has periods of slowdown and uncertainty, it’s natural for retailers to tighten their belts and cut costs. When volumes are down, it might have seemed counterintuitive to bolster supply chain operations in the past, but business attitudes are shifting to where leaders view a strong supply chain as necessary for short-term survival as well as long-term growth. Technology in the supply chain is no longer an add-on, it is mandatory. Increased expectations of same-day and express delivery services are here to stay, meaning companies are embracing better processes, more advanced systems and implementing automation at unprecedented levels. From robotics to artificial intelligence (AI), Warehouse Management Systems (WMS) to the internet-of-things, the vast majority of organisations either have, or are planning to install automation technology in their supply chain in 2023. It’s important to note, investing in automation technology doesn’t mean buying the biggest, brightest new toy. In this digital era, data is the currency that drives success. Embracing WMS and capitalising on new advancements in big data, AI, and robotics can lead to transformative effects in supply chain management. The data can highlight areas where a business is out of balance, shining a light on specifics and therefore avoiding a high capital, mass-transformation solution right away.Recent global challenges such as shifts in economic policies, Brexit and the coronavirus pandemic have underscored the importance of a resilient supply chain, but businesses are no longer thinking about their warehousing and logistics in survival terms – they are seeing growth opportunities in revaluating their current approaches. Supply chain is becoming more important in the boardroom, with a growing recognition of the need to mitigate disruption through greater visibility, better planning and data-driven decision. This is exemplified by one of Australia’s first pureplay e-commerce providers, The Iconic, recently exhibiting a commitment to technology investment to solve a short-term pain point and set the business up for long-term success. The Iconic reaching new heightsThe Iconic is an Australian success story, boasting more than 2.2 million customers and an announced revenue of more than $759 million in 2022. From its inception in 2011, the tech-driven retailer has set the industry benchmarks for customer service and delivery. Underpinning this mission is a supply chain which has become more agile throughout the years and was recently transformed to overcome challenging business issues created by their success.Initially, The Iconic was looking to expand its fulfilment capabilities, exploring options for a larger site in New South Wales and/or a strategy including distribution centres in other states. However, once the work began, it had a more urgent issue to deal with, as it approached capacity at its fulfilment centre in Yennora. With a need to solve the capacity issues, The Iconic shifted focus to a short-term solution and reworked its existing facility to meet immediate demand. Then-CEO Erica Berchtold said that as well as benefiting from pretty big revenue-saving, profit-driving, cash-preserving initiatives, the retailer now has the time to really work out what the best solution is for the next stage of investments in its supply chain. (Jere Calmes has since taken over as CEO of The Iconic.)“With the economic conditions as they are, things are starting to slow down a little bit. So, it’s crucial to have flexibility and to be able to sweat the assets you already have. I think if we had gone full speed ahead with our capacity plans, we would have too much space for what we need right now,” she said.This critical intervention for The Iconic is an example of digital innovation driving changes in the supply chain. Having a future-proof automation strategy is key to meeting growing e-commerce and consumer demands, while also being able to weather the unpredictability of political and geographical landscapes. The Iconic could have prematurely committed to a new fulfilment centre, but instead allowed data to drive decisions and set the business up for more sustained success. “Data underpins everything we do at The Iconic. It drives our carrier partner relationships, it drives our discussions with suppliers about new stock, returning stock, replenishing stock… It drives the layout of the fulfilment centre and the pick paths we use. Data is at the heart of it all and drives our commercial heartbeat.”The retailer also invested in Automated Mobile Robots (AMRs) at the Yennora DC and introduced an inbound hub which in turn significantly increased the throughput capacity at the main fulfilment centre. These supply chain improvements have set The Iconic up to analyse more data and make a much more informed decision about its future. “We’ve really bought ourselves some more time to analyse trends and now we’re looking at a roadmap for 2026 and beyond. Coming out of the fires, Covid and an extended period of geopolitical disruption, we now have the breathing space to ask the right questions and build the best future for The Iconic’s customer and their delivery requirements,” Berchtold said.