The Underdeveloped Strengths of Australia’s Supply chain Industry

// A piece I am reading...




The Underdeveloped Strengths of Australia’s Supply chain Industry

Rob O’Byrne, Group Managing Director of Logistics Bureau, review data from the research carried out by Logistics Bureau for the Supply Chain Report 2011-12, and discusses opportunities to improve Australia’s worldwide ranking and cut supply chain cost by half.

Relevant information on Australia’s chain industry is already valuable; using it to derive knowledge about how to improve supply chain operations is even more so. The Logistics Association of Australia with Logistics Bureau as a program partner recently published its Supply Chain Report 2011-12; the data in the report shows how the supply chain sector ( the transport and storage sector) has fared over the past year, and how Australian performance currently compares with the rest of the world. This article comments on the information to point out underlying challenges and opportunities, including a counter-intuitive yet key-benefit.

Economic Context

In general terms, the Australian economy remained strong compared with many other countries. With a growth of 6% in gross domestic product from 2011 to 2012, Australia remained ahead of the worldwide average of 4.2%. The Australian economy is characterised at the moment by the predominance of the sectors of Finance (10.31%) and Mining (8.98%), with Manufacturing in third place (8.55%). However, the leader for growth over the previous year was the Mining industry, with a staggering increase of 31%.

Australian unemployment went down from an already respectable 5.1% to 4.9%, compared to rates as high as 10% in other advanced economies. This was in sharp contradiction to the forecasts from the OECD (Organisation for economic Cooperation and Development) and the federal government, whose estimates were of a maximum of 7.7-8.5%. While this is encouraging for the economy and recovery as a whole, the message is somewhat mixed for the transport and storage sector that is already finding it tougher to attract, develop and retain the right personnel.


Outlook for the Australian Supply Chain Sector

Logistics (meaning transport and storage together) grew over the previous year. However, the real growth (18%) was in storage, offsetting negative growth in road transport and in the “rail, pipeline and others” sector. Within the year, results fluctuated, particularly with increases in both rail transport and storage services after the March flooding in different regions of the country. A somewhat darker loud on the horizon, prime warehouse facilities are projected to be in short supply in the near future.

Freight volume for Australia increased judging by international trade accounts (total imports and exports), international air and sea freight, container throughput and road freight. The four major ports of Melbourne, Sydney (Port Botany), Brisbane and Fremantle all handled more containers with a growth of between 4.8% (Sydney) and 7.6% (Fremantle). Road freight, measured in billion tonnes per kilometre, is expected to grow 3.7% year on year, to reach a level in 2020 that is 40% hiher that today’s.


International Logistics Performance Index

How does Australia compare with other countries in supply chain performance? Currently, the country is rated by the World Bank as 18th in the world, a little behind the United Stated and also behind 12 advanced economy European countries, including Germany, UK and France. In the information presented so far, there is not much to explain why Australia trails these other major European nations in supply chain excellence rankings, especially when many of these countries are struggling with comparatively high debt, high unemployment and low economic growth. But even if the temptation is to fast-forward to solutions, it is important to first understand the challenges that the sector is facing in Australia. Supply chain difficulties experiences by companies are compounded by a lack of an overall vision, and a tendency to put conflicting piecemeal solutions in place.


Rising Costs and Price Pressure


The Australian economy in general is strong, but transport and storage face rising costs and price pressure. Cost levels are driven principally by the costs of fuel, wages, depreciation and rent, leaving an average profit of 5%. Fuel prices are of particular concern because they continue to go up with significant volatility, under significant pressure as the economy makes a strong recovery. Logistics companies are in danger of being caught in a pincer movement of increasing costs and falling revenues. Lowering quality to compensate is unlikely to be the answer; Australia’s position in the worldwide logistics rankings is already on a downward trend to 18th place from 17th the year before.


Overly Mature Workforce

The transport and storage industry in Australia is also facing a challenge in human resources. With an ageing, male dominated workforce. The Department of Employment and Workplace Relations (DEEWR) predicts that in 2014-2015, the industry will have the capacity to employ some 640,000 people, an increase from today’s figure of 538,000. However, with 47% of employees aged 45 years or older (the mature part of the workforce), up from 44% the year before, the challenge will be to attract, develop and retain enough new members of the workforce and to train them in order to maintain overall efficiency. By comparison, the industry average for the mature workforce is only 37%. Without a balanced spread of age ranges, the logistics industry will find itself short of human resources for both labour and expertise, when the current mature workforce moves to retirement.

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The New and Tiny Beyonce!

When we hear the name Beyonce, it is just a shortcut for the beautiful, goddess-like and very talented woman whom Jay-Z loved and just had their first baby recently... but when we utter the word (BEYONCE), the title for this post suppose to have a BIG and HUGE  impact, right?

But why tiny Beyonce?

Because, even I'm one of the greatest fan of this star, this post is not about her...

This is all about this poor, little, yet very lucky thing... Beyonce - the 10-centimeter puppy.

I was watching the news last night when this pup was one of the headlines. According to the report, Beyonce was a Dachsund which was the last out puppy of mommy Casey. It was said that pregnant Casey was abandoned and delivered her little ones on the street. They were just very lucky that the rescuers of the Grace Foundation Animal Shelter (Northern California) had found them and had revived the limp and tiny Beyonce who, at that time has no heartbeat. 

In order to revive her, the veterinarian had done CPR for this little thing to come back to life and the vet had managed to do so - Thanks Doc!

Knowing Beyonce's size after three-weeks (10 cm), she's smaller than our 1-month old kittens at home which were about 18-centimeter and by seeing these kittens, it seems that she's like a kitten too. She can consume Dita's milk (the mommy cat) if she likes the taste. (laugh)

Being different from her siblings and being reasonably small, the Foundation who had managed to save Beyonce and her family submitted an application to the Guinness World Records for her to be the World's Smallest Dog.

Cinnamon Challenge

Surfing the net today, I encountered an article: TRENDING - Cinnamon Challenge!

I got curious why such a condiment-eating become a challenge. It was said that a politician, a comedian and two athletes are up to this challenge. I can't tell why they use such as a challenge? Is cinnamon that strong to be a dare-devil meal? Well, honestly, I haven't had a grasp of this condiment. I haven't tasted it either. All I know is that it can be mixed in a coffee; one that can make a bread taste better... what else?

Since cinnamon got me curious, I researched for it.(What a pity me!)Here's what I've got. According to Wikipedia, Cinnamon is a spice which came from the bark of a tree of the genus cinnamomum used in sweet and savoury foods. It seems that this cinnamon is something that can make one eat more than he can fill his stomach. According to some people on Yahoo Answers, Cinnamon does not have a particular taste. They say its sweet, bitter, sour.But they say that Cinnamon has a sweet woody fragrance... (Hmmm...I think, I can sense it a bit...) uhm, it's delicious (laugh).All I can is to imagine its taste (What a shame).

Okay, let's go back to the challenge, so since it is a spice, well I think it is not a big deal to become a challenge. Let me share to you this TV show in the Philippines called Eat Bulaga where they had a segment way back about year 2003 named SAK MO (Sige Ano, Kaya Mo?) where contestants have to take anything served as part of the challenge (i.e., ampalaya (Bitter Melon) juice, maggots,onion, raw eggs, siling labuyo, bell pepper, etc.). Another is the South Korean TV show Exploring the Human Body where members of the Super Juniors took the hottest chili called JOLOKIA and members of the formerly known as TVSQ (They separated into two boy group: TVSQ and JYJ) ate a bowl of rice mixed with this stomach-crunching, toilet-breaking Jolokia...

AMPALAYA

JOLOKIA

... and that's what I called a challenge...

Well I think if eating JOLOKIA became VIRAL like eating Cinnamon, a lot of people will be racing their butts in the toilet to make themselves comfortable. (LOL)

So, as a response to this viral challenge, I will have to...

... eat MILO instead (Slurp!)... Nyahahaha!

The One-Minute Writer: Today's Writing Prompt: Sleep

The One-Minute Writer: Today's Writing Prompt: Sleep

The response suppose to be is unforgettable sleep; but for me, it's Sleep-less.

My memorable sleep was one of the cold December nights of I think 2oo8 when we reached the peak of Mt. Apo. It was my first time to be in bed (I mean tent) where I find myself shivering and can't manage to fall asleep. Well, Thanks to one of our mountaineering mates that lent me additional blanket that made me have a minute of slumber...

... Morning came, I managed to climb one of the mountain's peak and felt the very cold and very fresh morning breeze while waiting for the sun to greet us GOOD MORNING! (my nose was running that time 'coz it is so cold up there...)^^

2012

(Clears throat...)

January 1, 2012 - 12:00 AM.
I heard the huge boom of the firecrackers and seen the different colors of the fireworks exploding in the dark sky. I heard people strike their cooking pots' covers awakening the whole neighborhood. here comes the New Year - year 2012.

Looking back 2011, it seems like people doesn't want 2012 to come and by the time the year approaches,people become nervous and frightened what this year may bring especially that it was said that the Year 2012 will be the end of the World! (and just like the year 2000, which is a false alarm)Yet people are in the situation to believe thus especially knowing what happened to Iligan and Cagayan due to Bagyong Sendong. Being struck by that kind of calamity, one can think - "it's the end of the world". Well I think the movie like 2012 has a big influence why people think so.

But before we move on to debating on the end of the world and the second coming of Jesus Christ, let us think of what 2011has made us.

A lot happened on the previous year. From the International to local.A lot of political issues been tackled as the ups and downs in the show business. Well, speaking of these things seems too big for me to dig into. So I just want to try what the happenings in my life during 2011.

2011 has a lot of surprises and blessings for me.On this year I have my first employment which I has resigned on the end of this year also due to things which I will not mention here anymore, let me keep it to myself, okay? I have been surprised by my high school classmates who had been married and bear children which I did not expect they would in this age ("expect the unexpected"). Blessings? A lot, but I also have sad moments in this year. Sad things that some were resolved, others still remained. I wish these things would be settles int his year of the Dragon.

2012 - Year of the Water Dragon. I don't have any idea what comes in store for me this year. All I wish and hope that this year would be another fruitful year to me and especially my family. I should have had my wish list for this year but there are only three major things I want to have this year:

1. A JOB
2. Successful Business program
3. good health of the family

If this three would go as I intended it to be, well I know everything will come smoothy...

Happy New Year everyone!!! ^^

Steve Jobs' death at 56

Steve Jobs= IPad, IPhone, McBook... NEXT Inc., APPLE...

This was the Steve Jobs that we know. One of the most influential people in the world especially in terms of technology. He had made a great impact to the way people work and play. There's a lot of lessons to learn from him. A drop-out becomes CEO...

It's sad but Steve's life has encountered the blue screen of death just like any computers. Jobs' death was announced by Apple yesterday(October 5, 2011 - Wednesday). At the age of 56, jobs retired not just in his position but in his life. If given such long life,it is sure that he can provide another technology one can't ever imagine just like what he did.

Jobs death was a great loss not just to people who are close to him but to the entire world which he change through technology...

Rest peacefully Steve...

Losing Her

I was a bit shocked as my sister texted me last July 25 saying that Grandma died. I asked myself how? though, she's this thin, little woman, yet I am sure she's not sick or whatsoever. She's already 80 years old and I thought it is just so early for her to leave this world.

I am not close to her, honestly. It was this feud we have in our family that started over this. the nonsensical jealousy my mother's siblings have in our family. I don't know why they are mad at us - especially to papa. He had done nothing wrong to them. he even helped them get good jobs but they just lose those jobs because of such vices which my father doesn't approve.

Though, we are considered as NOT PART of the family,I still considered her as my LOLA. I have a lot of good memories with her, too. Losing her hurts me too, though I haven't shed a single tear seeing her lying inside the coffin. Her expression shows that she's agonizing in her deathbed. Her face doesn't show a happy and contented life. She's hurting inside and I can see it in her face.

Though not close to her, I can still remember her visiting the Day Care Center where I studied and giving me 2 peso coins for "merienda" or she will be at the Day Care's door waiting for me holding the banana cue in one hand. There are times that I'm not in the mood to go home, I simply skip the afternoon session at the Day Care Center and went to my grandparents house and have my siesta there. Well, even though those were vague memories, still, I can remember her face smiling at me and her subtle voice every time she speaks to me.

But all those memories have sunked and buried...
She doesn't even want anybody to be near us.
Why does she despise us so much?
We haven't done anything wrong.
We just live our life uprightly...

My heart had been filled with hate since then. I know she doesn't like my father and not even care much for her very own daughter - my mother. I have a lot of questions, only her can answer. But those things would be buried with her...