Part 2 – Outlook
Following on from Part 1 of our Road Freight industry publication released last month, Part 2 examines the outlook for the industry and the growing challenges of congestion, driver shortages and regulation.
We also look at how the rapid adoption of online retailing and communication improvements are increasing the importance of the 'last mile' in logistics networks. The continued growth of online retailing will have fundamental implications for the structure of Australia's road freight and courier industry. This will provide opportunities for those operators who have the resources and flexibility to exploit this growing area. For most operators, however, the high cost associated with restructuring fleet configurations, distribution networks and pricing models will mean they are unable to take advantage and will continue to operate in a highly competitive, price-led, environment.
For such operators, the margin for error will continue to be slim. With low overall industry profitability, failure to meet key success factors can lead to business failure. To succeed, operators must be cost and risk focussed, and must develop non-price differentiators such as service, relationships or specialised freight configurations.
To read this issue, please click here >>.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
