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A Smarter Supply Chain

Using Information & Communications Technology to Increase Productivity in the Australian Transport &

Logistics Industry

Rocky WoodChairman ICT Sub-Committee – Australian Logistics Council

Industry General Manager Transport & Logistics, Telstra

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Current State and Relevance

• The Australian Transport & Logistics industry generates 14.5% of Australia’s GDP and employs 1,000,000 people.

• It connects every business in Australia with the world; and interacts with every individual in the country through delivery of goods, provision of public transport & joint use of infrastructure such as roads, ports, rail-lines and airports.

• Transport & Logistics use the same infrastructure as Emergency Services – physical as well as virtual (e.g. radio and telecoms networks).

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A Smarter Supply Chain – Using ICT to Improve Productivity

• The most efficient supply chains worldwide leverage real-time information and real collaboration between partners.

• The Australian Logistics industry has developed a model to maximise productivity in the use of transport systems (such as road networks) and supply chains which challenges current thinking and offers sustainable ongoing advantages.

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The Problem

• Australian transport players – once world-leaders in the use of ICT, have slipped behind.

• Government and industry have failed to take up certain productivity enhancing technologies.

• Our economy is constrained.

• Day-to-day issues such as traffic congestion impact Emergency Services.

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The Value Chain Maturity Matrix

Understanding:• There are 165,000 separate businesses in the T&L industry• 503,000 trucks (CAGR 3.5%); 80K more in last 5 years• 2.37 million Light Commercial Vehicles (4% CAGR)• 15.7 million motor vehicles in Australia (CAGR 3%)• 9 Governments• A myriad of regulatory authorities;• And a rapidly changing ICT environment.• The freight task in Australia will double by 2020; and triple by

2050

We developed a Value Chain Maturity Matrix that allows each stakeholder to plot their position and consider their trajectory.

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The Value Chain Maturity Matrix

Mindset

Execution

Value Chain Maturity Matrix

Proactive

Connected Interconnected Collaborative

Synchronised

IndustryProficient

Integrated Arms length

Functional Engineered

Connected Interconnected Collaborative

Synchronised

IndustryProficient

Integrated Arms length

Functional Engineered

Reactive Managed

InternalOrganisation

External Relationships

Value Network

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Committee Findings

1. Productivity can be improved today using existing technology.

2. Innovation will continue to delivery significant benefits and service improvements, in these areas:

• Logistics management systems• Physical flows of goods, mobile assets and

people• Information flows• Fiscal flows

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Committee Findings

3. Vehicle tracking and monitoring systems, including:• Vehicle tracking• Real-time traffic information• Electronic Route and Speed Maps• Freight Matching• Wireless Vehicle Communications via DSRC• Other Emerging Technologies

Offer immediate improvements

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Committee Findings

4. Today’s most efficient supply chains leverage information and ensure collaboration.

5. Any future strategy must be sustainable.

6. The benefits case for technology investment already exists.

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The Solution(s)

• Leveraging real-time information across the economy (supply chain)

• Impartial ICT solutions

• Investment by Government, industry and enterprises

• Appropriate regulatory environment and infrastructure (physical and virtual)

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Implications for Emergency Services

• Safety in the road transport industry is improving rapidly; but volumes of freight vehicles are growing fast(er) than passenger vehicles.

• Need to influence government on macro technology choices.

• Ability to project real-time information to/from the field.

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Conclusion

• ICT – through applications such as Intelligent Transport Systems, Intelligent Access Protocol, etc will improve the productive, safe and sustainable use of our transport systems – roads, public transport, rail, ports and airports

• Industries such as Public Safety/Emergency Services; and Transport & Logistics must work in concert with Government to achieve the best community and economic outcomes