Home' MHD Supply Chain Solutions : MHD Jan-Feb 2017 Contents Iwrite this first chairwoman's report with
great pride, after 56 years the Supply Chain
& Logistics Association of Australia has
given me the honour to travel into 2017 with
the responsibility and challenge, to change
our horizons, increase our strategic leverage,
change the 'think tank' of the current landscape,
and enhance what was already, and is, a great
association, led by dynamic past chairmen.
The strongest factor is: what would be the
consequence of not accepting this responsibility,
and what will that mean for other women who
have the desire to rise to accept the challenge
of responsibility in a changing marketplace.
So it is with this statement that I begin another
journey with you into uncharted territory, and
it is with great determination that I will chart
these unknown waters to carry the mantle, and
no doubt be judged continually along the way --
which is half the test and gratefully welcomed.
There is currently a 56% gender pay gap
across all industries, and it goes without saying
that 2016 has brought with it a challenging
economic environment that is ominous and ever
present in the global supply chain. The impact
of globalisation, our shrinking manufacturing
sector, increased technology, and regulation
for the industry have seen businesses of
all sizes continue to strive for continuous
improvement with dwindling margins and in
highly competitive and volatile environments.
In today's economy, trying to offer clients good
ROI with increased regulation and compliance
has never been more complex, and with these
changes companies need to be more versatile,
innovative and commercially astute than in any
other period seen prior.
While the industry has never been seen to
be trendy or in vogue, supply chain offers a
dynamic global platform for innovative and
creative entrepreneurial minds to change
its processes and fundamental intricacies.
Technology moves rapidly and as buyer
behaviours change to a more centric online
model, this will continue to challenge the way
we view what has become a very transactional
society and push us to re-think the speed of
ever-present change, in one that continually
threatens our monetary stability.
In total during 2015, core transportation
revenue worldwide will have been a projected
$4.6 trillion. This includes air, rail, water,
pipeline, courier and warehousing segments.
At about 6% of global economic activity (GDP),
transportation's core sectors add to an industry
that is growing in terms of TEU 19.6% in 2016
and an estimated 19.1% in 2017.
Transportation continues to evolve, no matter
what the type is involved - road, sea or air.
Business and technology trends have driven
immense changes in the transportation sector
over the past three decades. The information
age, with its introduction of sophisticated
databases that can track inventory levels and
shipments on a global basis via the internet,
has created vast transport and logistics
efficiencies. Supply chain technology has
been one of the fastest growing segments
in the information field. Mobile applications
are also bringing transportation request and
management directly to our smartphones. For
example, Uberisation of the industry famously
enables individual passengers in many nations
around the world to request transportation,
tailored to their specific needs, to be delivered
rapidly. This business model is spilling over into
services for local truck service and less-than-
truckload (LTL) long distance services.
The rapid adoption of outsourcing has led
many companies, when shipping is vital to
their businesses, to turn to logistics services
providers for all manner of shipping support,
including warehousing, scheduling and
distribution services - '3PL' or third-party
logistics. The sectors of transport, supply
chain management and logistics services are
permanently intertwined, creating efficiencies
once undreamed of in the transportation arena.
All nations worldwide face a daunting task
in maintaining airports, seaports, highways
and railroads that can handle commerce
and passenger traffic efficiently. The amount
of government funds available for roadway
development is never enough to keep up with
One of the biggest challenges facing the
global transportation sector over the mid- to
long-term is a focus on lowering carbon
emissions and enhancing energy efficiency.
Airlines have placed immense orders for fuel-
efficient jets like Boeing's new 787, which
promises fuel efficiency gains of 15% to 20%
per passenger mile, as well as engines that are
quieter and burn fuel in a cleaner manner.
Container ship operators are under intense
pressure to reduce contamination and emissions
whilst in port and at sea, and the latest designs,
such as Maersk's massive new Triple-E class
of ships, are making huge strides in this
regard. Automobile and truck manufacturers
are struggling to respond to demand for fuel-
Tremendous strides in green technology are
also being made throughout the transportation
services and transport equipment sectors. Lee
Schipper, a senior engineer at the Precourt
Energy Efficiency Centre at Stanford University,
pointed out that airlines today use 50% to 60%
less energy per passenger-kilometre travelled
than it did in the early 1970s, while trucking
uses 10% to 25% less fuel per ton-kilometre.
Governments continue to outsource their
transportation infrastructure to private operators,
as governments are short of cash. They
are selling or leasing toll bridges, ports and
highways to private operators/conglomerates,
reaping cash windfalls in the process, which
hopefully will be used to expand and develop
our much needed infrastructure (transport).
As consumers take more responsibility for
their purchase decisions and factor in ethical
supply chains, companies that satisfy this need
will stand out from their competitors. This may
be one of the more slow-burning supply chain
trends, but socially responsible, environmentally
friendly and legally compliant operators will
continue to win market share.
So with this, we enter 2017 with great
confidence, in preparation for the ever-changing
dynamics in the supply chain and logistics
sector. It is in this new role that I will dedicate
myself to work with our valued national partners
and our valued members.
Amanda O'Brien is the national
chairwoman of the Supply Chain and
Logistics Association of Australia. Email
MHD SUPPLY CHAIN SOLUTIONS --- JANUARY / FEBRUARY 2017
NEWS FROM SCLAA
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