Australian supply chains not linked to global standards: study

<p>Australia’s freight transport infrastructure requires a more coordinated and integrated approach, a study from the Australian Industry Group has found.</p> <p>Further, given Australia’s distance from major global markets, the country’s transport infrastructure system needs to be at the forefront of global efficiency &#8211 a standard the present system falls short of, particularly on the rail freight network and at intermodal connections.</p> <p>The study, <em>Linking Australia with Global Supply Chains</em> , found there were significant pockets of dissatisfaction with most freight transport modes across manufacturing industries and states.</p> <p>Ai Group chief executive Heather Ridout said the growing importance of transport and logistics operations to manufacturing competitiveness, highlighted the need for further action.</p> <p>&#8220The report found that inefficiencies in Australia’s freight transport system have contributed to increases in the general transport costs for two thirds of manufacturers in the past two years,&#8221 Mrs Ridout said.</p> <p>&#8220Transport and logistics costs are a considerable proportion of total manufacturing costs. Currently, they are equal to more than half of general administration costs and are more than marketing costs.&#8221</p> <p>The study found that outsourcing transport and logistics activities to specialist operators could result in substantial cost savings.</p> <p>&#8220Australia’s transport system also appears to compare favourably with some other industrialised economies, particularly those suffering from widespread road and rail congestion,&#8221 Mrs Ridout said.</p> <p>The study was based on a survey of 710 Australian manufacturers.</p> <br />