DCN AUGUST Edition 2019

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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 thedcn.com.au
THE 24TH ANNUAL AUSTRALIAN Shipping & Maritime INDUSTRY AWARDS Join us in the heart of Melbourne for the 24th annual awards and be among the who’s who of the industry for a night of excellent entertainment and networking. Have your say, nominate for an award now. SAVE THE DAT E ! Thursday 14 November 2019 Plaza Ballroom, Melbourne Contact Lloyd O’Harte, on 0414 272 574 or email lloyd.oharte@thedcn.com.au dcnawards.com.au MAJOR HOST SPONSOR SPONSORS The Merchant Navy War Memorial Fund Ltd thedcn.com.au July 2019 23 ( MNWMF ) www.mnwmf.com
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