Location-Tech the ‘new normal’ for supply chains

By Daniel Antonello | General Manager, Australia and New Zealand at HERE Technologies

What does coffee have in common with toilet paper? Or, indeed, Vegemite and most types of meat? The answer is that they’re all items that have been missing from Australia’s supermarket shelves at some point in the last two years.

For manufacturers, delays have been even worse. From couches and car parts to computer chips and coal, COVID-19 has not just been wreaking havoc on our immune systems, it’s been crippling supply chains all over the world.

With the Omicron variant surge in recent months, you could argue that disruptions are getting worse, not better. Two full years after the pandemic began, we’re still seeing closed borders, restrictions, and a staggering number of workers falling sick and forced to stay home. Consumers long accustomed to convenience and speed are becoming all used to delays.

Surely there’s a little bit of light on the horizon and the pandemic’s worst days are behind us? Let’s hope so. But unless this virus goes away, we shouldn’t expect that supply chains will just snap back to “normal”.

Shifting consumer expectations driving supply chain congestion

The world has changed since COVID-19 began, not least due to online shopping. People are turning to e-commerce more than ever before, with HERE Technologies’ latest research revealing that at least 44% of Aussies have become more reliant on e-commerce since the pandemic began.

The fierce competition to get more goods moving more quickly has already unmasked the fragility of supply chains. We’re seeing backlogs in ports, traffic congestion on roads, overflowing warehouses and a shortage of drivers.

According to a research map developed by HERE Technologies, the roads around Melbourne’s port were more congested than average last November, while container ships were also spending close to two days at the port – more than twice the global median (0.69 days) in 2019.

Emerging macro trends presenting new supply chain challenges

The growth in e-commerce is also resulting in a need for more warehouses worldwide – as well as a need to find supply chains that link them.

Experts are predicting that the number of warehouses around the world will grow by 20% between 2018 and 2025 to reach about 180,000. The continuing development of rural areas worldwide is not just resulting in more inconveniently located product manufacturers, it’s also producing more inconveniently located people to buy them.

Factor in trade wars, a looming European energy crisis, and increasing pressure to reduce carbon emissions, the already-complicated world of logistics

Road train permits extended to help resupply WA supermarkets

The McGowan Government extended the Flood Relief Permit system to March 27 enabling 36.5-metre double road trains access to Perth freight depots under escort from Northam and down Greenmount Hill to Roe Highway.

So far, 188 convoys of up to four road trains involving a total of 282 vehicles have accessed Roe Highway from Northam since the special conditions were implemented on February 2.

In the past, 36.5m road trains have had to break down to single trailers or 27.5m combinations at Northam to complete the journey into Perth.

The new measures were put in place to help mitigate impacts caused by the January floods in South Australia which severely disrupted road and rail freight movements.

At the same time, the State Government is allowing the movement of 36.5m road trains up Greenmount Hill, carrying fresh fruit and vegetables for the Eastern States market.

The special permit is open to any transport operator carrying refrigerated perishables only, with one SA-based company having expressed interest and likely to begin eastbound haulage next week.

Permits will be issued under strict regulation, including: • trucks drivee up Greenmount Hill only between the hours of 10am and 2pm; • they carry product that does not compete with rail freight; and • the prime movers are equipped with the latest in safety technology including in-