Coastal shipping operator says manufacturers should rethink JIT

<p>Fremantle-based coastal shipping operator Seacorp Logistics says the findings of an Australian Industry Group study into the nation’s freight transport network should prompt manufacturers to think differently about their transport requirements. </p> <p>Managing director Craig Thompson said the study, which pointed to major discontent with the nation’s freight network, should encourage manufacturers to challenge their addiction to just-in-time manufacturing principles. </p> <p>The study of 710 manufacturers found that about two-thirds of Australian manufacturers viewed the freight transport network as contributing to higher costs over the past two years.</p> <p>It found that logistics costs were higher than marketing costs and equal to around half of administration costs.</p> <p>It also found that logistics costs varied widely across industry, ranging from over 10% in wood, wood products and furniture, to a little under 4% in textiles, paper, printing and publishing, transport equipment and machinery and equipment.</p> <p>Mr Thompson said manufacturers should be thinking about a smarter approach to logistics, which utilises marine as well as other land transport modes.</p> <p>"Procurement and logistics managers stand to gain a lot if they think about what cargo can go now and what can go later," he said. </p> <p>"This approach improves inventory management while also achieving significant savings on freight bills."</p> <br />