Home' MHD Supply Chain Solutions : MHD JULY-AUGUST Contents In a real-time situation, passengers may
‘reverse auction’ a limousine journey to the
airport to the driver who can offer the best price.
Or, a domestic airline ticket may include a rail
or bus sector as part of one digital ticket, as is
already common practice in long-haul air travel.
Businesses are already able to access
information so they can target advertising to
individual mobile consumers based on their
preferences. Transport companies must become
adept at pushing productive information based
on aggregated meta-data to help passengers
plan their journeys.
Experience from the 2012 Olympics in the
UK demonstrated the benefits of digital analytics
to the transport sector. Aggregated meta-data
based on the number of phones detected would
signal when and where crowds were building
up and dispersing. This enabled organisers to
better manage crowds coming out of several
stadiums and converging on a station. Trains
and buses could be scheduled in a dynamic
way, assisting public safety and crowd control.
Privacy concerns, a top priority, should be
addressed by ensuring that data is used at a
level of aggregation that protects individuals’
privacy. All stakeholders need to work together
to put in place information security and privacy
platforms and provisions that are mutually
agreed and agreeable to the general public.
Position for long-term prosperity
The transport and logistics sector must rise
to the challenge if Australia is to maximise
the wealth-creating opportunities before it. A
recent major Deloitte report forecast that five
super-growth industry sectors worth an extra
$250 billion to the national economy over the
next 20 years hold the key to Australia’s future
The report, entitled Positioning for Prosperity?
Catching the next wave is the third edition of
the firm’s Building the Lucky Country series.
It found there is vast potential to be tapped in
five additional super-growth waves of agribusi-
ness, gas, tourism, international education, and
Global population growth of 60 million per
year will increase food demand especially, fresh,
high quality produce including protein, accord-
ing to the report. This one sector – for which
the supply chain is vital – presents an exciting
opportunity for the Australian transport industry,
which will be relied upon to help deliver the
grains, beef and dairy, wine, oil seeds and
aquaculture products from the farm gate to the
consumer in the years ahead.
Meanwhile, tourism and international educa-
tion will cause a surge of international visitors
in the coming decade. The transport sector,
parts of which are 25 years behind that of the
UK in technology and operational advancement,
will need to lift its game to meet the challenge
of ensuring these visitors a comfortable and
Australia’s private-sector freight industry will
undergo major consolidation over the next five
years as small to medium sized companies
decide whether to skill up or sell up in the face
of the changes brought about by technology.
Yes, private sector freight operators will need
to skill up or sell up. Freight transport organi-
sations must plan their information agenda and
technology strategies now or be left behind.
Technology embedded in roads, traffic lights
and phones, for example, could be better inte-
grated and shared with businesses and con-
sumers to help ensure a gridlock-free, smoother
flowing transport system.
We estimate that up to 15 per cent of busi-
nesses in the freight sector will be integrated
into technology smart, next generation transport
and logistics companies that are already posi-
tioning themselves for the future.
Digital mobility is driving change
Consolidation is being driven by profound shifts
brought about by digital mobility in business.
These are changing consumer demands on all
forms of transport providers. Technology that
tracks and traces deliveries, identifies customer
or traffic bottlenecks and ensures rapid replen-
ishment of products are just some of the newer
infrastructure required to meet new market and
High fuel costs, the still relatively high
Australian dollar and the yet to be repealed
carbon tax are further adding to the pressure
and ever-thinner margins for the freight sector.
Transport companies need to decide whether
to raise the funds needed for technology
investments and the up-skilling their workforces
to equip them to be competitive in the
rapidly changing environment. Many who are
unable or unwilling to make the transformation
will need to exit the industry. We see grassroots
evidence of the impending consolidation
in the level of focus transport company
owners are showing on valuing
businesses with a view to mergers
MHD SUPPLY CHAIN SOLUTIONS — JULY / AUGUST 2014
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