IN THIS ISSUE

04 05 06 07 08 11 12 13 14 14 15 15 16 17 17 18 19 20 22 23 24 25 26 36 37

Message from SCLAA Board Chair

New Unfair Contract Terms regime commences 9 November

ASCL Awards Gala Dinner 10 November 2023

2023 Australian Supply Chain & Logistics Award Finalists2

2023 Future Leader Award Finalists

New SCLAA Platinum National Partner - Malec

Business Challenges: Cost Minimisation vs. Investing in Talent

ASCL Awards Gala Dinner - Guest Speaker

The Industrial & Logistics (I&L) sector is the next ESG frontier

When AI came to the rescue in the face of supply chain disaster

A guide for 3PLs and warehouses coming into peak shopping season

Still too many work-related fatalities

New SCLAA National Partner - Cognex

New Corporate Members

New SCLAA National Partner - Access

Straight Talk from David Doherty OAM

Case Study: Lilydale Instant Lawn, Delivered Where You Need It

Linde MH strengthens its footprint in New Zealand with new dealer partner, TDX

Case study: How a Large Manufacturer Seamlessly Moved from Windows to Android Devices in the Warehouse

Microlise Secures Major Contracts with Two of Australia’s Leading Grocery Retailers

2024 Microlise Transport Conference

Divisional Reports

Swisslog names new Chief Executive Officer

Upcoming Events

Sue Tomic

Managing Director for Chain Consulting Services. Appointed to the Board in 2019.

This year was marked by several profound challenges for the supply chain and logistics sector in Australia. These challenges, influenced by both global and regional factors, continue to cast a long shadow as we look ahead to 2024. As it is almost a wrap for 2023, let’s review the year that was and what factors are likely to persist.

Australia’s economic vitality is intricately tied to international trade, and the supply chain and logistics industry serves as the conduit for this exchange. In 2023, Australia’s total trade in goods and services was valued at approximately AUD 868 billion, according to data from the Australian Bureau of Statistics (ABS).

Australia’s vast natural resources, including iron ore, coal, and liquified natural gas (LNG), remain a cornerstone of the country’s exports. In the 2022-2023 fiscal year, mineral and energy resource exports reached a total value of approximately AUD 325 billion, as reported by the Department of Industry, Science, Energy, and Resources.

Agriculture and food production hold central positions in Australia’s economy. In the 2022-2023 fiscal year, the agricultural sector contributed approximately AUD 65.5 billion to the country’s GDP, according to the National Farmers’ Federation.

Australia’s retail sector relies heavily on efficient supply chains to meet the diverse consumer demands of its population. In 2023, the retail trade industry contributed around AUD 30.5 billion to the country’s GDP, as per ABS statistics.

All three sectors face disruption in the year(s) ahead. The Resource sector will continue to come under scrutiny as global pressure to reduce carbon emissions and embrace green energy alternatives increase in momentum.

Our agriculture and food production export capabilities are subject to the changes in weather patterns in our region and all indications of another cycle of drier conditions as we move away from three years of exceptional L Nina weather patterns to El Nino which will reduce crop yields.

The wild card will be the Retail sector as Australian consumers faced increased costs of living, a series of interest rate increases on mortgages and reduced discretionary expenditure to compensate. The trend is likely to continue well into 2024.

The Year Ahead….. Global Supply Chain Disruptions

Global uncertainties, including trade tensions, geopolitical conflicts, and the lingering impact of the COVID-19 pandemic are likely to continue, making it challenging for businesses to maintain consistent supply chain operations in 2024.

Labour shortages

The supply chain and logistics sector provides a substantial number of jobs across the country. In 2023, it employed an estimated 1.7 million Australians, according to the Transport Workers’ Union. These roles span from truck drivers and warehouse workers to supply chain managers and technology specialists.

The issue of labor shortages, particularly in the logistics and transportation sector, remains a pressing concern. Workforce challenges have led to delays in cargo handling, delivery interruptions, and increased operational costs. With no immediate resolution in sight, this problem is expected to persist through 2024

Infrastructure Constraints

Infrastructure congestion, especially in major urban centers and key transportation routes, continues to hinder the supply chain. Ports, highways, and rail networks remain strained, disrupting the smooth flow of goods. It’s anticipated that continued population growth and urbanization will sustain these infrastructure challenges into 2024

Environmental Sustainability Pressures

The call for more sustainable supply chain practices is a challenge that gained prominence in 2023 and will remain a focus in 2024. Companies are under increased pressure to reduce their carbon footprint, adopt eco-friendly practices, and employ sustainable packaging materials. Meeting these demands while maintaining operational efficiency is a persistent challenge.

Regulatory Changes

Government regulations and trade agreements have been subject to frequent changes, adding complexity to supply chain operations. This challenge is expected to continue in 2024 as Australia adapts to evolving customs procedures, compliance standards, and import/ export regulations.

Digital Transformation and automation

The acceleration of digital transformation and automation in supply chain operations continued in 2023. Australian businesses continue to invest in cutting-edge technologies, including supply chain management software, Internet of Things (IoT) devices, and automation. These technologies improved efficiency, enhanced visibility, and helped streamline the movement of goods.

Cybersecurity Threats

Supply chain operations have become increasingly digital, exposing the industry to cybersecurity threats. Data breaches, ransomware attacks, and other cybersecurity vulnerabilities will continue to challenge the sector’s integrity in 2024 as companies invest in enhanced security measures.

Resilience Planning

The importance of building resilient supply chains became evident well prior to 2023, and this focus on resilience planning will persist in 2024. Diversifying supplier bases, stockpiling critical components, and implementing contingency plans will continue to be priorities for the industry.

The ability to address and resolve current and emerging challenges depends on the collective efforts of professionals who share common interests and goals. This is where the SCLAA will continue to play a crucial role. By creating a sense of community, sharing knowledge, advocating for industry interests, fostering collaboration and providing education and mentorship, the collective efforts of our members and partners often lead to innovative solutions and best practices that benefit industry as a whole.

I look forward to sharing some of those best practices and celebrating industry innovation at our upcoming ASCLA awards gala dinner on 10th November in Sydney.