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Collaboration key for supply chain future

Community engagement is needed to foster public appreciation of supply chains, a Deakin University study says

 

Building supply chains across Australia that are resilient to disruption is a matter of national importance and should be widely viewed as such, a study prepared for the Australian government says.

Over 50 leaders in the freight and supply chain industry were interviewed by academics from Deakin University’s Centre for Supply Chain and Logistics for the scenario planning study prepared for the government’s inquiry into National Freight and Supply Chain Priorities.


 Related Story: Industry groups had a lot to say about the Inquiry report when it was released in May. Click here


Study leader and senior research fellow Roberto Perez-Franco says a National Freight and Supply Chain Strategy is critical for Australia to keep pace with threats from global development, growing automation, climate change and a rising population that was increasingly centred in congested cities.

“Urban congestion is a problem that will only get worse in the future, unless urban planners include provisions for freight and supply chains into their plans for cities,” he says.

“Freight is expected to double over the next 20 years, so industry and all levels of government need to work together to ensure that happens smoothly and with a positive impact on the nation’s prosperity.”

The study found that freight consolidation might help alleviate urban congestion problems, but commercial and regulatory barriers to this would need to be overcome before it was a possibility.

“Greater collaboration is required among supply chain members, between government and industry, and even among competitors – locally and internationally – to find joint solutions, share data, develop common standards and infrastructure and achieve greater efficiency,” the report says.

“The move from a non-collaborative culture to one that balances competition and collaboration may require the development of a guiding framework from the top.”

But more community engagement would be required to generate public awareness and appreciation of the importance of supply chains and their importance to communities, business and Australia’s material competitiveness.

“This engagement includes addressing the concerns of communities, and applying new policies and technologies to reduce any negative impact on their amenity,” the report says.

“When the public recognises, with their hearts and minds, that freight and supply chains are vital, they will provide more community and political support.”

“Also, a perception of jobs in these areas as premier roles, not just blue collar or unskilled, would also get more people into the industry,” the study says.

Nonetheless, Perez-Franco says there are significant opportunities for Australia to stay ahead of the game.

“‘Brand Australia’ could become even more important for the country’s exports. We can really set ourselves apart as a clean, green and ethical source of agricultural products if we make our supply chain a priority,” he says.

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