WHAT INNOVATION MEANS FOR THE LOGISTICS INDUSTRY
Sunday, November 30, 2008 at 11:30PM WHAT INNOVATION MEANS FOR THE LOGISTICS INDUSTRY
by Peter Melville Leaders Speak
In today's transport and logistics industry, a typical senior manager will have worked their way up the ladder, from either driving trucks or managing a warehouse, and as such they are very good at managing these businesses - operationally. But innovation has not typically been a strength in logistics. New idea generation has more or less been restricted to fairly simple ideas on operational optimisation - bigger trucks, bigger warehouses.
Truly innovative ideas tend to arise out of the problems of our clients. When fuel prices rise or bottlenecks are affecting the wharf, they come to us to find a solution. Innovation at Maersk Logistics has historically been and continues to be, to a large extent, driven by client demand.
Looking forward, the Australian logistics industry faces three main issues. The first issue is staff and the dwindling attractiveness of the industry to today's generations. Becoming a truck driver is no longer considered the career opportunity it once was. The average age of Australia's truck drivers is over 50 and many of them will be considering retirement in the next 10 years. Meanwhile, in this same period, imports to Australia are going to increase twofold. This begs the question, "Where are the drivers going to come from? And if it is from overseas - then where?"
Then there is infrastructure and the question of capacity. Terminals are already congested and existing rail infrastructure is insufficient. So, who will finance new ports and railroads? Will there be a role for short sea shipping? And how are we going to bring about genuine competition to ensure efficiency?
Finally, there is the issue of the environment. With consumers becoming increasingly environmentally aware, Australian businesses and their logistics service providers need to consider their carbon footprints. With our distance to the global market, Australian businesses need to consider the impact this is going to have on their competitiveness and make efforts now to minimise this.
We don't have all the solutions, and although we are spending a lot of resources trying to deal with the above issues, we still depend on our clients to ask the right questions to come-up with the right innovative solutions.
- Peter Melville, General Manager, Maersk Logistics






