DCN AUGUST Edition 2019

INDUSTRY OPINION
The growing logistics challenge
Australia needs to work smarter if it is to manage the freight task required
of a larger population, says Patrick Ingenegeren
AUSTRALIA IS A RELATIVELY
growth in other freight vehicles in recent
young country and the size of Europe or
years. Plus a growth in e-commerce means
North America. It is unlikely that we will
consumers expect greater levels of service
catch up with these other continents in
and faster delivery of products.
terms of servicing the population with a
Consumer expectations are already
functioning and flexible supply chain until
having a major impact and Australia Post
2050. Due to the sheer size of Australia
saw a 5.6% rise in domestic parcels in
and more than 50% of the population
2016-17 and it has become increasingly
being in Melbourne, Sydney and Brisbane,
difficult to make deliveries in the larger
our logistics are obviously a bit more
metro areas, especially the CBD.
complicated than other countries. It’s
If we wish to grow our cities and
essential that we work smarter and not try
ensure their continuing functionality and
to invent the wheel again and again.
amenity, we must implement smart and
effective solutions which can support the
DEMOGRAPHIC CHALLENGES
increasing freight tasks.
As the baby boomers are tilting out of the
workforce and into retirement this in turn
LESSONS FROM EUROPE
prompts a high demand for more workers.
These challenges are not unique. Most
Our own ‘king of demographics’ Bernard
Salt, estimated this gap a couple of years
cities in The Netherlands like Amsterdam,
Arnhem and Zutphen originating from
Patrick Ingenegeren, independent director,
Supply Chain & Logistics Association of Australia
ago at about 200,000 skilled workers per
the Middle Ages and were all established
annum. These workers will not only have
between the 13th and the 16th century.
space and delivery docks in the CBD but
to take over from the retirees but also
So they are very old beautiful cities with
our CBD’s are not very freight friendly.
support the elderly with healthcare, social
typical small cobble stone streets, with
Apartment blocks and retail precincts,
assistance, nursing homes, etc. In other
stunning but dense housing and some
particularly in the inner city, are often
words going forward healthcare will be a
are on canals which today is of course a
built without sufficient attention to the
big and important pillar in our economy.
nightmare for deliveries. More often than
needs of freight deliveries and waste
What I am getting at is that this will not
not streets are blocked by various trucks
collection. There is a growing shortage of
only put further pressure on the supply
making deliveries to shops, individuals
on-street loading zones for freight vehicles.
chain in healthcare but also on other
and other businesses making the inner city
This results in freight vehicles wasting
supply chains like electronics, whitegoods,
unliveable and unsafe.
time and money circling city and suburban
building supplies, groceries, entertainment
Policymakers realised that the last mile
retail precincts to find a suitable parking
and general e-commerce due to the
delivery had to change so several freight
location close to the delivery destination.
required population growth.
consolidation centres were established on
Servicing almost half the Australian
the fringe of some of the cities where all
FINAL THOUGHTS
population (around 11m people) in three
freight is cross docked and consolidated
So for Australia the use of freight
metropolitan areas requires a smart and
onto smaller electrical vehicles which in
consolidation centres to improve access to
effective solution to deliver products
turn deliver the freight into the city centre.
CBD for deliveries is vital.
from business to business and business to
The good thing is we don’t have to
consumer. Because of the distance between
CLOSER TO HOME
reinvent the wheel as it already has been
the cities each city need to develop or adapt
In Australia, many parcel carriers have
done and successfully implemented
to an optimised delivery solution to avoid
already been forced to transfer freight to
overseas. Let’s learn from others,
major congestion.
smaller vehicles to access our CBD’s not
improve it so we can deliver the goods
State governments already identified
to mention juggling the limited on-street
as promised, on time, in full and
significant changes reflected in vehicle
loading zones (if available).
undamaged to all Australians and of
registration data, where the growth in LCV
or ‘small white vans’ has outstripped the
Yes the technologies exist now to better
co-ordinate and allocate limited road
course those extra required 200,000
skilled workers per annum.
SCLAA
22 August 2019
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