Woolworths has partnered with a leading Australian food services supplier to support the temporary fulfillment of orders to its B2B customers. Read more
A.P. Moller – Maersk has announced a new $821 million agreement with US-based warehousing and distribution company to boost its logistics and services.
Australia’s warehousing and logistics industries will be worth $187 billion by 2021, according to a new study from market research firm Ken Research.
The company noted that it has observed an evolution in the logistics industry in recent years, in terms of integration and digitalisation of the supply chain, which has led to better productivity and efficiency creating sustainable modes of transporting goods from one place to another.
Ken Research attributed the Australian logistics market’s impressive growth rate in 2016 to the expanding manufacturing and retail sector, the growing number of foreign companies and the increasing value of exports and imports.
The demand for cold chain logistics has grown with the rising demand for Australia agricultural products from other countries leading to increasing agricultural exports, the company noted. It added that government investment in infrastructure development of road, rail, air and water transport facilities will drive the Australia logistics and warehousing industry in coming years, through investment including $70 billion allocated for transport infrastructure from 2014 to 2021, and $75 billion for funding road and rail infrastructure from 2018 to 2027.
The partnership of the Australian Government with New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, Northern Territory and the Australian Capital Territory in 2014 is expected to assist the various land transport infrastructure projects.
Ken Research said that the freight forwarding industry will continue to account for the larger share of the revenue pie, supported by the growth of third-party logistics (3PL) service providers, as global players enter the Australian market.
Large companies are expected to focus on value-added services, with the power having shifted to the consumer, with internet driving growth, the transformation of supply chain, business-to-consumer (B2C) outgrowing business-to-business (B2B), new technology and home delivery.
“The value added services segment has seen faster growth in the international market than domestic primarily due to growing cross border e-commerce,” the company said. “With the development of artificial intelligence and growth of e-commerce sector, the demand for warehousing is expected to develop with auto and ancillary and chemical and pharmaceutical sectors [emerging as the] largest demand drivers of warehousing space.”
Melbourne delivery tech start-up Passel will soon launch an innovative delivery platform in Australia that will offer same-day delivery for consumers, and will source delivery operators from an on-demand network of locals.
Once consumers have completed a purchase, they are guaranteed delivery within three hours. They way the platform intends to honour this is through a network of on-demand couriers – individuals working in and near to shopping centres.
The system will match those finishing work in and around shopping centres in the following period and heading in the same direction as the purchaser’s destination, essentially enabling people to help deliver items on their way home. In return for their efforts, the individuals will receive a $10 electronic gift card once receipt is confirmed.
Marshall Hughes, one of the co-founders behind the idea, spent two decades working in freight before conceiving the idea for the business due to a throwaway line: “One day, you’ll be shopping in the hardware store and your phone will ping with a message that Mrs Jones, who lives around the corner from you, has just bought a shovel online. If you deliver it on the way home, we’ll give you a $10 gift voucher.”
When no one else seemed to be delivering the model, Hughes decided to do it himself.
“The biggest change I have seen over the past 20 years has been the growth of B2C (business-to-consumer) delivery,” he told Logistics & Materials Handling. “It has grown really rapidly and, the thing is, it’s hard to do B2C well. Traditional freight structures are not suited to sporadic delivery.
“It is hard to predict when people will want things, and with freight you’re constantly trying to balance supply with demand, so you don’t have drivers sitting around doing nothing,” Hughes added.
The platform’s website notes, “Solutions such as drones and lockers only serve to push the problem further down the line, rather than trying to find a better way to get online orders into the hands of the customer.”
“Because of Passel’s opportunistic model, we’ll be able to deal well with spikes and troughs,” Hughes added. “For example, we’ll be able to find people to deliver for us the week before Christmas when it is impossible to get couriers, and the week after Christmas won’t be a problem for us as our couriers are on demand.”
Passel is due to begin operations in September 2017.
Online logistics management platform Shippit has appointed Dominic Culbert as its Head of Logistics.
Culbert joins Shippit from his most recent role as the Group Logistics and Delivery Solutions Manager at Mysale Group, where he oversaw the implementation and setup of OzSale’s international and domestic delivery network, comprising of over 65 shipping lanes across 10 countries.
Prior to this, he was Head of Distribution at BCP Marketing Services and developed supply chain solutions for Microsoft, Novell, Cisco, Palm, and Apple.
With over 18 years of experience in ecommerce logistics, Culbert will be responsible for driving the Shippit’s logistics strategy as it strengthens its position in Australia and expands into the APAC market.
“When it comes to managing the end-to-end shipping process, Shippit is doing it better than anyone else in the space, which is what attracted me to the role,” said Culbert. “I’m excited about further developing and growing their platform.
“I see numerous opportunities to drive improvement in ecommerce shipping around tracking, visibility and cost savings, particularly in the Asian markets, which are growing in leaps and bounds.
“Shippit has the ability to fill a niche in this region where customers want cost effective, seamless international solutions. For us that means expanding our offering such as adding new carriers and new capabilities to cater to the needs of global retailers.”
“Locally, a majority of companies aren’t well informed about how to optimise their shipping. A big part of our role will be educating retailers about the variety of shipping options available and then improving and broadening our service to continue to meet our customers’ needs.”
Shippit Co-founder, Will On, said the hire was a strategic part of Shippit’s vision and would help to drive its growth trajectory.
“This marks a major milestone for our business,” said On. “Dominic’s appointment is amongst a number of strategic positions we have created. He was instrumental in the global success of OzSale and his experience is second to none. We couldn’t be more fortunate to have him on board to join us in driving the vision we have set for Shippit.”