IBISWorld Chairman Phil Ruthven has warned hundreds of logistics professionals to further automate online supply chains
November 6, 2012
Logistics professionals have been warned to automate online retail supply chains to cope with labour shortages.
At the recent Dematic seminars in Melbourne and Sydney, IBISWorld Chairman Phil Ruthven warned hundreds of logistics professionals that a perceived strength of online retail, the need for a smaller labour force, will not be enough for businesses to stay competitive.
“Although the supply chain is already one of the better performing sectors, improving labour productivity by itself is simply not enough these days and investment in information communications technologies (ICT) and innovative automated solutions will be essential to increase productivity and maintain a competitive advantage,” Ruthven says.
“The goods supply chain now accounts for 31 percent of the Australian economy and one-third, or 32.6 percent, of the nation’s jobs.”
Ruthven says the rapid growth of internet shopping is already having a huge impact on traditional bricks and mortar retail.
He forecasts that online shopping will double from 4.5 percent to 8.9 percent of retailing in Australia by 2016.
He says this will create need for supply chain transformation.
“Pressures extend all the way up the supply chain to the primary sector and importers and, with virtually full employment, the availability of labour will hinder one of the supply chain’s perceived sources of flexibility,” he says.