extracting more value from the australian freight …...2018/08/08  · extracting more value from...

Extracting More Value From The Australian

Freight Supply Chain

Simon Morgan Director – Government & Communications

Australian Logistics Council

Presentation to the Smart Infrastructure Summit, Sydney 8 August 2018

The Australian Logistics Council

The Australian Logistics Council

The Australian Logistics Industry

Adds more than $130 billion to the Australian economy each year.

This represents 8.6% of Australia’s GDP.

Employs 1.2 million Australians.

Every 1% efficiency improvement boosts GDP by $2 billion.

The National Freight and Supply Chain Strategy

Completion of a National Freight and Supply Chain Strategy high priority for ALC.

This strategy has also been recommended by Infrastructure Australia.

Prime Minister Malcolm Turnbull announced such a Strategy would be developed in November 2016. Work is now underway.

Stage One: The Inquiry

Conducted throughout 2017, guided by an Expert Panel.

127 submissions, plus face-to-face consultations.

First time that whole-of-supply-chain issues examined from a national perspective.

What the Inquiry Found…

Inquiry Report released in May 2018 makes recommendations in five critical action areas:

- Integration - Measurement - Planning - Capacity - Community Awareness

Laying The Foundation Released in June 2018 as the first

in a series of Discussion Papers designed to help implement the Strategy.

Recommendations tie directly to the Inquiry Report, and are things the Commonwealth can action now

Data is ‘The New Oil’ in logistics

Key theme in the Inquiry Report is lack of data about supply chain performance.

Quality of data is another pressing challenge.

Standards and interoperability

Data Also Crucial To Freight’s Social Licence Freight needs not well understood by

community at large.

Lack of data a contributing factor to this.

Inquiry recommends ABS establish a Transport Satellite Account.

Will also help with infrastructure planning.

Enhancing Supply Chain Visibility

Australian Transport Standards for Freight Labelling and EDI launched at ALC Forum 2016.

Industry blueprint to help drive

improvements in the efficiency, interoperability, visibility and productivity of freight movement.

Benefits of Better Supply Chain Visibility

Investigating the Potential Benefits of

Enhanced End to End Supply Chain

Visibility launched at ALC Forum 2017.

Based on real-time industry pilots

Economic benefits could exceed

$1billion.

Barriers to Overcome Continuing industry perception that the cost

outweighs the benefit. Lack of bespoke IT systems and non-standard

data formats - and a lack of collaborative mindset.

Smaller companies often lack the resources and capacity to implement new approaches.

Industry’s Objectives For Technology

Enabling improved freight and supply chain performance and safety outcomes;

Ensuring consistency and/ or interoperability between infrastructure networks;

Avoiding duplication of technology requirements, including hardware and software; and

Reducing operational costs

Harnessing the Power of Telematics

ALC supports the mandatory use of telematics in heavy vehicles.

This will help drive improved road safety, but is also vital for planning road infrastructure, and determining road access and pricing in the future.

Has been talked about for long enough – action needed.

ALC Blueprint for Introduction of Mandatory Telematics