Alison May – Talent Consultant, Global Supply Chain and Logistics

After an interesting start to 2013, the Australian Economy is finally starting to strengthen and promote a stabilising 2nd half of the year.  This need for a positive change is especially imminent within the Australian Logistics and Supply Chain industry which welcomes the news with open arms.

A recent report showed that the 2 major players of the Australian Freight market:  DHL and CEVA Logistics reported their highest revenues for 2013 in July coming in at a combined AUD16 Million.

The Turning Point of 2013

The unpredictable market trends that we have all encountered over the past 6 months has allowed unique opportunities for acquisitions and non- traditional forms of business to develop and thrive within the Australian market. It has allowed more competition to enter the Logistics market through mergers which in turn raises the bar of operation standards. A report conducted by Supply Management states that the ‘Asia Pacific region is dominated by Local providers, therefore  the opportunity for new market entrants has the potential to stimulate the AU Logistics economy’. The report also predicts that Asia Pacific would become the largest contract logistics market by 2016, due to the economic weakness of Western Europe.

Moving forward with new Logistics Strategies

The previous ‘lull’ in the market has made current Manufactures and Forwarders to stop and re-think there business strategies. We are fast turning into a market where only the smartest and not necessarily the largest will survive.  Report author Cathy Roberson said: “Despite a slowdown in market growth over the past two years, there are certainly opportunities for companies to develop market share, if they adopt the right strategy.

The second half of 2013 should be viewed as one of prosperity and opportunity as we are coming into the Australian Forwarding peak season.

The turning point for 2013 is here along with opportunities for continued growth into 2014 for the Global Supply and Logistics Industry.