Episode 89 - Quirks of Australian Logistics
Kyle MacNaught • 55 min listen • July 31, 2020
In this episode, Consulting Logistics host, Kyle MacNaught, will chat with Richard Duncan at DKN Supply Chain. In this conversation they will discuss:
- Shipping Challenges in Australia
- How COVID-19 affected the outback
- Exciting innovations occurring down under episode
Tell us a little bit about yourself and your experience with the supply chain.
Richard Duncan started out on a farm in rural New Zealand. When he moved to the mainland he started working for a logistics company called Main logistics. He was a financial analyst to begin with and that's when he learned he really liked the industry. He bounced around through a couple jobs until he finally ended up at Officeworks looking at transportation and innovation in the supply chain. He also looks at advisory works in e-commerce as well.
Tell us a little bit about the quirks of Australian Logistics.
The distance is the biggest thing you learn when looking at logistics in Australia. Working for national retailers have stores across the country in which the trek can be over 2,000 miles. When setting up freight solutions you really have to think about not only the metro but also what the cost and the challenges are going to be for that distance. In some of the remote ares they have what is called a road train that are up to 5 semi trailers that are all joined together and pulled by one truck. They also use a lot of container freight. Other quirks to come by are snacks in the warehouse believe it or not, they walk the warehouse to clear out the snakes in the smaller warehouses in rural areas. Supporting remote communities can be a difficult challenge as well. It can be a 7 day ordeal that can require barges and air freight just for one shipment.
What does communication look like especially in rural areas?
In city areas they use a lot of track and trace and have good visibility of their products. But as you get more rural you start losing milestones and visibility. Out there it tends to be more paperwork that has to be scanned so it really slows down the process the farther you go out. Those visibility and communication gaps start to close up with the advancement of technology.
What does education in the supply chain look like down there?
Quality of labor has faced the same challenges as the US has seen. The type of labor they need for the smart supply chain is different than the labor they needed 5 years ago. People with data science degrees are needed on the supply chain industry. Some universities in Australia are offering a masters degree in the supply chain program and his company has partnered with them to allow the students to work in e-commerce in their company. COVID really brought the supply chain to life and opened peoples eyes to the importance of the supply chain.
In Australia is it more large chain logistics companies or is it more owner operator companies?
They do have some really big players who dominate the space but they tend to use subcontract models. The bulk of trucks are owned by small operators who subcontract to larger companies. There are a lot of subcontracts dominating the market right now in Australia.
What does the infrastructure look like in Australia?
In Australia they do not really have the storms like we do here in the US but the real challenge they face is the wet season. The rail can be backed up two or three days due to the wet season and driving can be made impossible. The best way to face that challenge is to have good buffer stocks and not go too lean with inventory. Another way to face it is to have alternative road carriers. Heat can also be a factor in the trucking industry as it is hard on the equipment and drivers.
What is a quirk that you found most interesting when you first moved to Australia and what is the most interesting quirk now?
Richard could not get over the use of the road trains. One truck pulling four or five trailers was astonishing. Fuel trucks were another shocking thing that he saw nowhere else except for Australia.
What was your experience with COVID?
The first wave of COVID caught everyone off guard, there was no playbook. Some retailers had record sales days others were hurting for business. Retailers that had the mature e-commerce offerings were in the best shape from what he saw. They had the web infrastructure as well as the warehouse infrastructure to deal with customers. He also saw that teams became very agile throughout COVID. Projects that normally took months we are now taking days to I can’t be accomplished. Another thing he saw was business is pivoting to either e-commerce or alternative products. He also saw a lot of organic farms growing their businesses in Australia. Many retailers started working together to solve problems. most companies also went to contactless everything.
Is the nearshore movement spreading to Australia as well?
Australia is headed in that direction as well. Many are thinking about the risk factor of “having all their eggs in one basket”. There has been a slow move to have in warehousing in manufacturing in Australia. That move was happening before COVID however now it’s even more popular. It wasn’t a knee-jerk reaction that many expected. He doesn’t believe there will be a massive shift of manufacturing back to Australia but he does believe it’ll be a slow continuous move.
What was e-commerce like in Australia prior to COVID?
E-commerce was on the rise before COVID hit. Some of the big retailers had just started their e-commerce missions. Having access to cloud-based solutions was the biggest help. It out a massive stain on the freight system. A lot of the bigger fright companies started dialing back their guarantees.
Have you seen a change in the attitude of consumers through COVID?
Definitely-consumers looked for certainty. They wanted to know that the product was in stock and will be delivered in time. The one day shipping was no longer guaranteed. Companies without a lot of visibility had to do more customer service. Communication became key to please customers.
What has been the attitude as you hit the second lockdown?
Initially the panic buying came back but not to the level that it was the first time. There was a bit more enforcing of social distancing in the stores. The panic has calmed down now that customers know the supply chain is going to keep up.
Here in the U.S. we have also seen the rise of farm to table - how has that working in the second round?
Through analytics companies can look at who their regular customers are and how much product they will need. During the first wave they had to sometimes shut down the websites because it was so popular but in the second wave they are better prepared. It is not so much keeping up with the order level now as it is getting it in the freight network in a reasonable time frame.
What are you seeing as far as innovation and opportunity?
There are a couple of areas where they are seeing innovation. Automation and robotics has become a huge participant in grocery retailers. The retail market is following the grocery market. The AMR robotics is coming into the industry. A lot of smaller bays knees are starting to move at the front end and are developing their own technology in house. Crowdsourcing delivery is also coming into the Australian market. Technology is really starting to take off especially in the supply chain industry.
Are different companies and industries sharing the information that they are finding?
The startups are really sharing their solutions to issues that they come across. They are more open to sharing than some of the larger companies are. There are some very interesting things happening down in Australia.
What is something that you think is ripe for innovation in Australia?
For Australia it is really that last mile delivery. We see a lot of control in branding and marketing all the way through to the warehouse but all that work falls apart in that last mile delivery. They are looking for someone who can grab that space and fix what goes on in it. The issue is if you want that quality you have to pay for it. The freight system is also a bit fractured over there and could use some revamping.
Thank you for listening!
Audio only version
Innovative managed transportation provider continues to invest in hiring and developing the best talent within the logistics space QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Brendan Lawler has joined as Senior Manager of Strategic Planning and Customer Service. Lawler brings in over seven years of experience leading diverse, cross-functional teams in challenging, chaotic, and ambiguous environments. In his new role, Lawler will own all aspects of planning, optimizing, appointing, tracking and servicing customers’ freight. He looks forward to standardizing the planning and customer service functions within the department and incrementally improving the throughput of the team through process improvement and technology integration. “I am energized by the opportunity to help continue FreightPlus’s growth as a data-driven transportation management solutions provider,” says Lawler. “I’m eager to use my experience in leading teams toward operational excellence to enhance the customized service for our clients. FreightPlus's mission to ‘simplify complex logistics together’ embodies the people-driven culture that I value so deeply. I look forward to joining a company that is team-focused and has a proven track record of transforming ideas into innovative solutions that create sustainable impact.” Lawler previously served as a Captain in the Marine Corps and as Senior Operations Manager within Amazon Transportation Services, where he focused on driving operational excellence and utilizing new technology to drive process improvements. In his tenure, he was responsible for developing and implementing new network-level process improvements for both under-the-roof (UTR) and over-the-road (OTR) operations, as well as spearheading the effort of optimizing the synchronization of warehouse and transportation operations. With revenue and employee count quadrupling over the past five years, FreightPlus was listed no. 184 on the Inc. 5000 list of fastest-growing private companies in America in 2022. Chief Operating Officer Ben Graeff comments, “I am so excited to welcome Brendan to FreightPlus. Brendan brings a deep background in operational excellence from his time in the Marine Corps and Amazon Transportation. He is a quiet leader that leads by example, lives in the day-to-day details, and is the exact right person to help us scale our operation and customer service teams through our continued growth.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management, offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry best practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit FreightPlus.io for more information. ### Media Contact: Courtney Conyers Marketing & Communications cconyers@freightplus.io
For the 2nd Time, FreightPlus Appears on the Inc. 5000, Ranking No. 184 on the List of Fastest-growing Privately Held Companies in America FreightPlus recognizes a three-year revenue growth rate of 2,846% NEW YORK, August 16, 2022 – Today, Inc. revealed that FreightPlus is No. 184 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. “We are honored to be featured on the annual Inc. 5000 list for the second year in a row,” said Stephen Aborn, FreightPlus Chief Executive Officer. “This award and our ranking reflect the continuous dedication from our team to providing our customers with the people, technology and processes to build best-in-class logistics programs. We are thrilled to be recognized as we strive to bring customer-centric and innovative solutions to the world of logistics.” The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Together, those companies added more than 68,394 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000 . The top 500 companies are featured in the September issue of Inc. magazine, which will be available on August 23. “The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated,” says Scott Omelianuk, editor-in-chief of Inc. “Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
Innovative managed transportation provider brings on LTL industry leader to continue to support rapid growth QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, has announced the expansion of their company with the hiring of Curtis Garrett, joining as Senior Vice President of LTL. Garrett will focus on improving carrier relationships and interactions through utilizing technology and strategic processes. With revenue and employee count quadrupling over the past five years, FreightPlus was named the second-fastest growing privately held company in Massachusetts by the Boston Business Journal. FreightPlus was also listed as the 783 rd fastest-growing company on the 2021 Inc 5000 list. CEO Stephen Aborn commented, “I am thrilled to have the opportunity to work with Curtis. Expanding our team with his experience is a great step in the right direction for FreightPlus as we continue to look for the most innovative and ambitious thinkers in the logistics space.” Garrett brings fifteen years of LTL experience prior to joining FreightPlus, including eight with ODFL in operations, driving, pricing, yield, and W&I. Since departing from ODFL, he has spent six years on the 3PL, software and consulting side of the industry, recently serving as Vice President of Pricing and then Chief Strategy Officer at Reconex. Garrett is fascinated with technology and is truly a student of the industry. Having overseen hundreds of millions of dollars in revenue on the business profitability side, as well as pricing and carrier relationships and procurement, Garrett is more determined than ever to break down silos and get everyone on the same playing field. “I am beyond excited to join FreightPlus”, said Garrett on his new role. He continued, “from what I have witnessed, this company has all the right parts and pieces – customer obsession, innovation, and grit – to do big things in the freight industry and I could not be more excited to be a part of it.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
FreightPlus has been named to Boston Business Journal's exclusive 2022 Fast 50 list for the first time.
Innovative managed transportation provider continues to invest in executive team to support the company’s rapid growth. QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Ben Graeff has joined as Chief Operating Officer, the first in company history. Graeff will be responsible for the company’s operational, managerial, and product strategy, as well as driving day to day and quarterly results and innovation in FreightPlus’ next stage of scale and growth. With revenue and employee count quadrupling over the past five years, FreightPlus was named to The Inc. 5000 list of fastest-growing private companies in America in 2021. CEO Stephen Aborn commented, “I am thrilled to welcome Ben to FreightPlus. His natural ability to lead and his experience scaling large businesses at the intersection of technology and operations will be invaluable to our growth story. Every person or partner that works with Ben will be better for it.” Graeff brings over 10 years of experience building technology and businesses at Amazon. Prior to joining FreightPlus, he served as Sr. Manager, Product Management and Data Analytics within Amazon Transportation Services. During his tenure, Graeff was responsible for P&L ownership in Amazon’s consumer retail division, developing new software and customer experiences for Amazon Prime, as well as product development and business results in operations and logistics across the globe. “I am excited to join a company whose mission embodies solving complex problems in partnership with its customers,” said Graeff on his new role. He continued, “Like all great organizations , FreightPlus is powered by its people. I’m eager to join this growing team and blend my experience in building and developing organizations with delivering fast-paced results through people, process and technology. FreightPlus’ commitment to driving long-term partnerships, cost savings and strong service for our customers aligns closely to my core values. I look forward to continuing to build the products, processes, programs and technologies to drive FreightPlus’ future growth as a data-driven transportation management service.” About FreightPlus About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
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