Supply Chain Report - Logistics Association of Australia

S u p p l y C h a i n R e p o r t 2 0 1 0
Section D: Australian Industry Performance
International Logistics Performance Index
• Australia’s Logistics Performance ranked
18th of 150 countries in 2010, down one
place from the previous ranking in 2007.
• Average LPI is currently at 3.84, up
from 3.79. The scores on each of the key
dimensions are displayed in the table.
• It is noted that Australia is rated better on
every dimension except Track & Trace.
Source: World Bank [17]
LPI
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Previous
Rank
3
1
4
2
23
7
6
9
12
16
11
15
8
10
14
13
18
17
5
21
Germany
Singapore
Sweden
Netherlands
Luxembourg
Switzerland
Japan
United Kingdom
Belgium
Norway
Ireland
Finland
Hong Kong, China
Canada
United States
Denmark
France
Australia
Austria
Taiwan
4.11
4.09
4.08
4.07
3.98
3.97
3.97
3.95
3.94
3.93
3.89
3.89
3.88
3.87
3.86
3.85
3.84
3.84
3.76
3.71
4.00
4.02
3.88
3.98
4.04
3.73
3.79
3.74
3.83
3.86
3.60
3.86
3.83
3.71
3.68
3.58
3.63
3.68
3.49
3.35
4.34
4.22
4.03
4.25
4.06
4.17
4.19
3.95
4.01
4.22
3.76
4.08
4.00
4.03
4.15
3.99
4.00
3.78
3.68
3.62
3.66
3.86
3.83
3.61
3.67
3.32
3.55
3.66
3.31
3.35
3.70
3.41
3.67
3.24
3.21
3.46
3.30
3.78
3.78
3.64
4.14
4.12
4.22
4.15
3.67
4.32
4.00
3.92
4.13
3.85
3.82
3.92
3.83
3.99
3.92
3.83
3.87
3.77
3.70
3.65
Tracking &
Tracing
4.18
4.15
4.22
4.12
3.92
4.27
4.13
4.13
4.22
4.10
4.02
4.09
3.94
4.01
4.17
3.94
4.01
3.87
3.83
4.04
International Logistics Performance Index 2010
Country LPI Customs Infrastructure
International Logistics
Shipments
Competence
Timeliness
4.48
4.23
4.32
4.41
4.58
4.20
4.26
4.37
4.29
4.35
4.47
4.08
4.04
4.41
4.19
4.38
4.37
4.16
4.08
3.95
Total Business Inventory
• The cost of Total Business Inventory reduced during 2009 to
about $130 billion in December and came back up slightly to
$134 billion in June 2010 Quarter.
• The significant fall of inventory level could be linked to the
reaction of businesses to the economic crisis. It is expected
that the level of inventory will be higher in 2010-2011 because
of an improved economic outlook together with the strength of
the Australian currency. Total inventory alone cannot provide a
full picture of the industry performance.
Total Business Inventory (June 2000 to June 2010)
$m
Inventories (Book Value, Current Prices)
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
GDP ($m)
Period
Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun
00 01 02 03 04 05 06 07 08 09 10
Source: ABS [4]
Inventory to Sales Ratio
• In the last report it was noted that the Inventory to Sales ratio
climbed slightly during 2009, which could suggest the delay of
the industry’s response to declining sales.
• The Inventory to Sales ratio improved again in 2010. Part
of the reason could be that business is still cautious about
prospects and avoids building up levels of inventory.
• Overall, the Inventory to Sales ratio has continued to improve
over the years due to improved supply chain management
practices.
Ratio
Inventory to Sales Ratio (June 2000 to June 2010)
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
Period
0.0
Jun
00
Jun
01
Jun
02
Jun
03
Jun
04
Jun
05
Jun
06
Jun
07
Jun
08
Jun
09
Jun
10
Source: ABS [3]
www.laa.asn.au 23