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STRATEGIC PLAN 2011-2013 DECEMBER 2010 DRIVING A SEAMLESS SUPPLY CHAIN

Transcript of STRaTegic PLan 2011-2013 - Australian Logistics Council · P4 STRaTegic PLan 2011-2013 Our...

STRaTegic PLan 2011-2013

DECEMBER 2010

Driving a SeamleSS Supply Chain

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PO Box 20 DEAKIN WEST ACT 2600P:+61 2 6260 3274 F:+61 2 6260 4978 E: [email protected]

www.austlogistics.com.au

©Australian Logistics Council, December 2010

Our New Strategic Direction 2

2011 – 2013 Strategic Intent 3

Framework 4

Values 5

Organisational Structure 6

Member Profile 7

Policy Scope 8-9

About Us - A Plan on Page 10

Political, Economic, Social and Technological Issues Assessment 11

A Snapshot of Our 2011-2013 Action Plan 12

2011-2013 Objectives, Strategies and Actions 13-15

A look at Our 2010 Policy Scope 16

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Our New Strategic Direction

Industry representation of the freight transport and logistics industry in Australia is highly fragmented, with close to 100 industry associations and councils representing the various components and geographical areas of the industry.

The Australian freight transport and logistics industry is required to put cohesive policy positions forward to secure the best outcome. This will only occur if the industry works in partnership and supplies complementary resources to provide advocacy on national infrastructure and regulatory issues.

The Australian Logistics Council is not seeking to become the sole representative of the Australian freight transport and logistics industry, or to be a peak body of associations in the freight transport and logistics industry. There are many local and industry specific issues that are extremely well handled by sectoral/modal and state/territory associations.

The Australian Logistics Council has undertaken considerable research on industry representation and associations around Australia to determine the most appropriate model for the Australian freight transport and logistics industry.

We will continue to represent the Australian freight transport and logistics industry on national regulation and infrastructure issues, with the aim of emulating the success of organisations such as the Minerals Council of Australia and Business Council of Australia, which coordinate and represent the interests of industry to all levels of the Australian government.

It is the Minerals Council model that the Australian Logistics Council has adopted.

Our aim is to develop and maintain good working relationships between the Australian Logistics Council and other associations to ensure the industry maximises its advocacy efforts. The Australian Logistics Council will continue to maintain a constructive dialogue with all freight transport and logistics associations, including:

»» National and sectoral transport and logistics associations

»» Transport and logistics professional organisations

»» Transport unions

»» International transport and logistics organisations.

Federal and State Governments currently have an agreement to jointly fund state-based freight councils. Some state freight councils have expressed a desire to work closely with the Australian Logistics Council.

State freight councils can leverage off the ability of the Australian Logistics Council to drive the national industry agenda for regulatory reform and infrastructure investment. We can also harness the influence of major freight suppliers and customers to support national regulation and productivity efforts within the sector.

Freight councils have a deep knowledge of conditions and the strategic policy context in which logistics is performed in each region, delivering a depth of understanding of how state jurisdictional settings can affect national industry and policy.

Our 2011 – 2013 Strategic intent

To establish the Australian Logistics Council as the ‘go to’ organisation representing the major

and national companies participating in the Australian freight transport and logistics supply chain

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Our Framework

VisionLead advocacy organisation to all levels of Government and industry on freight transport and logistics supply chain regulation and infrastructure issues

Mission

To influence national transport and infrastructure regulation and policy to ensure Australia has safe, secure, reliable, sustainable and internationally competitive supply chains

Objectives 1. Be the nationally recognised voice of

Australia’s freight transport and logistics supply chain

2. Be the leading advocate of appropriate national regulation and infrastructure to ensure Australia enjoys the full benefits of freight transport and logistics policy development and reform

3. Promote and encourage greater recognition by Government and the community of the importance of the freight transport and logistics industry’s contribution to Australia’s economy

Outcome

The Australian Logistics Council is viewed by all levels of Government and industry as the primary source of information on freight transport and logistics supply chain issues

Our Values

accountable

Committed to delivering sound evidence based freight transport and logistics advocacy on behalf of our Members

Transparent

Working within appropriate legal and governance frameworks to support the effective delivery of freight transport and logistics advocacy

innovative

Continuously scanning the environment to leverage opportunities and information to provide innovative best practice freight transport and logistics advocacy

Responsive

Quickly responding to emerging freight transport and logistics issues to ensure Australia has safe, secure, reliable, sustainable and internationally competitive supply chains

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effective

Working in partnership with our Members and stakeholders to ensure our freight transport and logistics advocacy is cohesive and collaborative

Efficient

Efficient utilisation of our resources to ensure that our staff are supported to deliver effective advocacy and policy advice

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Our Organisational Structure

ALC BOARD

ALC Board of Governors

ALC Chairman

ALC Secretariat

Safety Committee

National Logistics Safety Code Retail Logistics Supply Chain Code of Conduct

Regulation Policy Committee

Infrastructure Policy Committee

Membership & Finance Committee

Working Groups

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australian Logistics council Members are major companies participating in the Australian freight transport and logistics supply chain

australian Logistics council Members must be signatories to a code under the National Logistics Safety Code (NLSC), eg the Retail Logistics Supply Chain Code of Conduct (RLSC) or Steel Code, or comply with an equivalent and recognised industry safety code or standard

australian Logistics council associate Members include associations, unions, organisations, government agencies and companies participating in the Australian freight transport and logistics supply chain.

australian Logistics council Members and associates must be registered Australian companies or government agencies

The primary australian Logistics council Member and associate Member contact must be a senior decision making Executive

Our Member Profile

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Our Policy Scope

The Australian Logistics Council is not seeking to become the sole representative of the Australian freight transport and logistics industry, or to be a peak body of Associations in the freight transport and logistics industry.

There are many local and industry specific issues that are extremely well handled by sectoral/modal and state/territory Associations. The Australian Logistics Council policy scope crosses into areas covered by all these stakeholders, however there are many issues not covered by the Australian Logistics Council policy scope.

Diagram A. demonstrates how the Australian Logistics Council is aligned with stakeholders on some transport and logistics issues but does not seek to cover all policy issues.

Diagram a.

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Diagram B. depicts the Australian Transport Council Governance (ATC) Arrangements. The ATC’s work program is supported by transport agency chief executives (including National Transport Commission (NTC)), who meet as the Standing Committee on Transport (SCOT).

The overlaid box outlines how the Australian Logistics Council policy focus coincides with the ATC/SCOT policy agenda.

cOunciL Of auSTRaLian gOVeRnMenTS

auSTRaLian TRanSPORT cOunciL

STanDing cOMMiTTee On TRanSPORT

Jurisdictions

national Transport

commission

national Road Safety

council

austroads

SafeTY Standing Sub-Committee

enViROnMenT Standing

Sub-Committee

SecuRiTY Standing

Sub-Committee

auSTRaLian MaRiTiMe

gROuP (maritime Standing Sub-Committee)

PRODucTiViTY and efficiencY

Standing Sub-Committee

neTWORK PeRfORMance

Standing Sub-Committee

australian Trasportation Data action

network

accessible public

Transport Committee

COag road reform plan

project Board

national heavy vehicle

regulator project Board

maritime Safety reform

Committee

national road Safety

executive group

rail level Crossing

group

rail Safety policy and regulation

group

rail Safety regulatory

reform project Board

Technical advice

Regulatory Policy

advice

australian Logistics council

Diagram B.

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About Us a Plan on a Page

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Australian Logistics Council Member Profile

advocacy on infrastructure»» National Freight Network Plan»» National Ports Strategy»» State/Territory Freight Plans»» COAG Capital City Strategic Planning Systems»» Role of Infrastructure Australia

administer Safety codes»» National Logistics Safety Code

»» Retail Logistics Supply Chain Code of Conduct

industry stakeholders»» National freight transport and logistics businesses»» National and sectoral freight transport and logistics

associations»» National industry associations»» Transport and logistics professional organisations»» Transport unions»» International transport and logistics organisations

The australian Logistics council members are major companies participating in the Australian freight transport and logistics supply chain, including:

»» Transport and Logistics providers and owners»» Logistics facilities such as ports and/or intermodal

terminals»» Transport and Logistics Infrastructure owners»» Retailers»» Manufacturers/suppliers/consignors

advocacy on Regulation»» Development and implementation of a national

transport and logistics regulatory framework»» Council of Australian Governments (COAG) and ATC

national transport policy and regulatory reform agenda including:»– National Heavy Vehicle Regulator»– National Rail Safety Regulator»– National Marine Safety Regulator»– Impact on related regulation

»» NTC regulatory reform, including:»– Telematics»– COAG Road Reform Program»– Freight rail policy framework»– Fatigue management»– Performance Based Standards

»» Henry Tax Review»» National Workplace Health and Safety law and

regulations »» Sustainability and Energy Efficiency

government stakeholders»» COAG»» ATC»» Federal Department of Infrastructure and Transport»» Department of Prime Minister and Cabinet»» Other relevant Australian Government Departments»» State/Territory Government Departments of

infrastructure and transport»» NTC»» Infrastructure Australia»» Productivity Commission»» Standing Committee on Transport»» Safe Work Australia»» Australian Local Government Association (ALGA)

and members»» Local Government Authorities (LGA’s)»» Heads of Workplace Safety Authorities

The australian Logistics council associate Members include associations, government agencies, unions, organisations and companies participating in the Australian freight transport and logistics supply chain including:

»» Industry associations and organisations»» Unions/professional associations and organisations»» Government agencies and organisations such as freight councils»» Companies that are suppliers or users of transport and logistics

goods and services.

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Political, Economic, Social and Technological Issues AssessmentThe table below depicts our assessment of the political, economic, social and technological issues that impact on the Australian freight transport and logistics industry. This assessment has assisted the Australian Logistics Council to form our 2011-2013 Strategic Plan.

Political»» Governments are increasingly looking for a view that

reflects the depth of the transport and logistics industry and the efficiency of the total supply chain

»» COAG Reform Agenda:»– National Partnership Agreement to ‘Deliver a

Seamless National Economy’ that is slowly leading to a single national set of laws regulating commerce:•» For example - development of national laws and

regulations for Workplace Health and Safety»– COAG and ATC national transport policy and

regulatory reform agenda, for example:•» National Heavy Vehicle Regulator•» National Rail Safety Regulator•» National Marine Safety Regulator

»– Capital City Strategic Planning Systems»» NTC regulatory reform, for example:

»– Telematics»– COAG Road Reform Program (CRRP)»– Freight rail policy framework»– Fatigue management

»– Performance Based Standards»» Henry Tax Review»» Climate Change and Energy Efficiency – for example,

the Prime Minister’s Task Group on Energy Efficiency report states that transport represents more than one-third of Australian final energy use, and more than 40 per cent of all household emissions from energy use

Social»» Treasury estimates that Australia’s population will increase

to 35 million by 2050. Australia’s freight task is expected to almost double again by 2020 and triple by 2050

»» Appropriate and progressive urban planning is required to balance community, commercial, transport and freight needs

»» Aging workforce and shortage of skills

economic»» Bureau of Infrastructure, Transport and Regional Economics

(BTRE) has defined logistics as: ‘the activities required for the movement and handling of goods and materials, from inputs through production to consumers and waste disposal’

»» The Australian freight transport and logistics industry generates 14.5% of Australia’s Gross Domestic Product (GDP), providing more than 1 million jobs across 165,000 companies. The Australian Logistics Council estimates that every 1% increase in efficiency will save Australia around $1.5 billion1

»» Total (includes road, rail and coastal shipping, but excludes air) interstate freight grew from 17.8 billion tonne per kilometre (tkm) in 1972 to 96.8 billion tkm in 2007, averaging 5.0 per cent growth per annum. This is forecast to grow from 104.6 billion tkm in 2008 to 228.4 billion tkm in 2030—equivalent to average annual growth of 3.4%2

»» Overall, the total interstate freight task in Australia is forecast to grow much faster (3.61% per year from 2008 to 2030) than the rate of population growth (1.58% per year) and also faster than the average national GDP growth (2.79% per year)

»» Shippers increasingly regard logistics and supply chain management as key to their success. Many credit third party logistics (3PL’s) with helping them achieve critical service, cost and customer satisfaction goals3

»» Lingering uncertainty from global financial crisis»» Trend for larger transport and logistics companies through

acquisition and organic business growth»» Focus on development of nationally significant infrastructure

to enable productive future supply chains, and to support sustainable national outcomes

»» Provision, ownership and cost of transport and logistics infrastructure

Technological»» Innovative technologies will be required on a large scale,

for example ICT has the potential to build new economies of scope and scale

»» Focus on telematics for transport and logistics compliance and enforcement

»» Increased focus on energy efficiency in transport and logistics delivery

»» Proposed development of multi-function transport networks

1 alC national Strategy for the Transport and Logistics Freight Industry - Enhancing Australia’s Supply Chains 2008-20152 BITRE – Multimodal interstate freight in Australia – Research Report 120. www.bitre.gov.au3 Capgemini Consulting – The State of logistics Outsourcing in 2010: results and Findings of the 15th annual Study

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A Snapshot of Our 2011-2013 Action Plan

The Australian Logistics Council will implement the following Actions by 2013:

1. Develop a report providing a comprehensive description and assessment of the Australian transport and logistics industry today, projections of how the demand for transport and logistics services might develop over the period to 2030 (and beyond), an analysis of the infrastructure consequences of the expected growth in demand and strategies for addressing those consequences.

The report will focus on infrastructure of national significance to the transport and logistics industry (roads, railways, sea ports and air ports).

2. Monitor and engage in Government actions on the Report by the Prime Minister’s Task Group on Energy Efficiency.

Develop an ALC position on energy efficiency and the contribution by the freight transport and logistics industry to climate change and mitigation.

3. Promote the adoption and development of safety best practices in transport and logistics through the National Logistics Safety Code (NLSC) and Retail Logistics Supply Chain Code of Conduct (RLSC)

4. Provide industry advocacy on the COAG, ATC and NTC national transport policy and regulatory reform agenda, including:

»– National Rail Safety Regulator and regulatory framework

»– National Marine Safety Regulator and regulatory framework

»– National Heavy Vehicle Regulator and regulatory framework

»– National Workplace Health and Safety Law and regulations

»– National Telematics Strategy

»– COAG Road Reform Program

»– Freight Rail Policy Framework

»– Fatigue management

»– Performance Based Standards

»– Supply Chain strategies

5. Advocacy on the Henry Tax Review and other emerging issues

6. Advocacy on the role of Infrastructure Australia and high level of engagement on:

»– The National Ports Strategy and National Freight Network Plan

»– Capital City Strategic Planning Systems – Australian Logistics Council to ensure capital city strategic planning systems take into account population and the impact on transport and logistics.

7. Create a national presence for Australian Logistics Council through:

»– Development of strategic partnerships with relevant Government and industry bodies

»– Active media engagement

»– Australian Logistics Council Annual Forum

»– Biannual Australian Logistics Council member/Government dialogue

»– Decision Makers Dinners with jurisdictional Ministers for Transport

»– Monthly edition of Australian Logistics Council Update

»– Australian Logistics Council Annual Report

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Our 2011-2013 Objectives, Strategies and Actions

Objectives Strategies actions Responsibility Timeframe

1. Be the nationally recognised voice of Australia’s major freight transport and logistics supply chain

a. Position Australian Logistics Council as the ‘go to’ organisation representing the major and national companies in the Australian freight transport and logistics industry

i. Australian Logistics Council to communicate revised 2011 Strategic Plan to members and key industry/government stakeholders

CEO - Australian Logistics Council

Dec 2010

ii. Influence and advocacy to core stakeholders:»» COAG»» Department of Infrastructure and Transport»» ATC »» Standing Committee on Transport»» Infrastructure Australia»» Productivity Commission»» NTC»» State/territory Departments of infrastructure and transport

CEO - Australian Logistics Council

Ongoing with regular reporting to the Board on progress and outcomes

iii. Influence and advocacy to other stakeholders:»» Department of Prime Minister and Cabinet»» Workplace Relations Ministerial Council»» Local Government and Planning Ministers’ Council»» Environment Protection and Heritage Council»» Dept of Climate Change»» Safe Work Australia»» Heads of Workplace Safety Authorities»» ALGA and members and LGA’s»» Other relevant government and industry organisations

CEO - Australian Logistics Council

Ongoing with regular reporting to the Board on progress and outcomes

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Objectives Strategies actions Responsibility Timeframe

2. Be the leading advocate of appropriate national regulation and infrastructure to ensure Australia enjoys the full benefits of freight transport and logistics policy development and reform

a. Engage with COAG, ATC Ministers, and their Departments to advocate a national approach to issues affecting the Australian transport industry

b. Promote effective and efficient supply chains in Australia through regulatory reform and appropriate infrastructure investment, including by maximising efficiency in existing supply chains

i. Develop a report providing a comprehensive description and assessment of the Australian transport and logistics industry today, projections of how the demand for transport and logistics services might develop over the period to 2030 (and beyond), an analysis of the infrastructure consequences of the expected growth in demand and strategies for addressing those consequences.The report will focus on infrastructure of national significance to the transport and logistics industry (roads, railways, sea ports and air ports).

Infrastructure Policy Committee

2012

ii. Monitor and engage in Government actions on the Report by the Prime Minister’s Task Group on Energy EfficiencyDevelop an ALC position on energy efficiency and the contribution by the freight transport and logistics industry to climate change and mitigation.

Infrastructure Policy Committee

2012

iii. Capital City Strategic Planning Systems - COAG has agreed to national objectives and criteria for the future strategic planning of Australia’s capital cities:»» Australian Logistics Council to ensure capital city strategic

planning systems take into account transport and logistics issues

»» ALC to assess the impact of population on future requirements for the freight transport and logistics industry.

Infrastructure Policy Committee

2012

iV. Advocacy on the national transport policy and regulatory reform agenda being driven by the COAG and ministers of the ATC: » National Rail Safety Regulator and regulatory framework » National Marine Safety Regulator and regulatory framework » National Heavy Vehicle Regulator and regulatory framework

Regulation Policy Committee

2013

V. Influence development of one national law for each of these Regulators to minimise conflict with related regulatory frameworks such as National Workplace Health and Safety laws and regulations

Regulation Policy Committee

2013

Vi. National Workplace Health and Safety law and regulations: » A national and consistent approach to regulation » Minimise conflict with transport and logistics specific

regulatory frameworks

Regulation Policy Committee

2012

Vii. Continue high level of engagement and make submissions to Infrastructure Australia and the NTC on the National Ports Strategy and the National Freight Network Plan: » The National Freight Network Plan should set the agenda

for all governments to ensure the appropriate regulatory environment, infrastructure and investment is in place to meet Australia’s freight needs

Infrastructure Policy Committee

June 2012

Viii. NTC regulatory reform, including: » Telematics » COAG Road Reform Program » Freight rail policy framework » Fatigue management » Performance Based Standards » Supply Chain strategies

Regulation Policy Committee

2013

iX. Promote the adoption and development of safety best practices in transport and logistics through the National Logistics Safety Code (NLSC) and Retail Logistics Supply Chain Code of Conduct (RLSC)

Safety Committee Ongoing with regular reporting to the Board on progress and outcomes

X. Identify and undertake activities required to permit the RSLC to be registered as a Code of Practice under the national heavy vehicle regulatory framework

Regulation Policy Committee

2013

Xi. Monitor and make submissions on the Henry Tax Review Regulation Policy Committee

2012

Xii. Advocacy on role of Infrastructure Australia Infrastructure Policy Committee

Ongoing with regular reporting to the Board on progress and outcomes

Objectives Strategies actions Responsibility Timeframe

3. Promote and encourage greater recognition by governments and the community of the importance of the freight transport and logistics industry’s contribution to Australia’s economy

a. Engage with Australian Logistics Council Members, Associate Members and stakeholders to influence perceptions of the freight transport and logistics sector

i. Australian Logistics Council to create media presence to drive implementation of strategic policy issues

CEO - Australian Logistics Council

Ongoing with regular reporting to the Board on progress and outcomes

ii. Australian Logistics Council to hold Annual Forum: » ‘Freight Networks for the Future – 2011’ Forum will be held at

the Melbourne Convention and Exhibition Centre from 21 - 22 February 2011

» 2012 and 2013 Annual Forums to be announced

Membership and Finance Committee

Ongoing with regular reporting to the Board on progress and outcomes

iii. Establish Australian Logistics Council member/Government dialogue twice yearly on issues of significance in the freight transport and logistics sector

CEO - Australian Logistics Council

Ongoing with regular reporting to the Board on progress and outcomes

iV. Host a Decision Makers Dinners with jurisdictional Ministers for Transport: » One dinner in each state and territory » Two Chairman’s Dinners with Federal Minister for Transport

CEO - Australian Logistics Council

Ongoing with regular reporting to the Board on progress and outcomes

V. Produce Monthly edition of Australian Logistics Council Update – sent to all subscribers

CEO - Australian Logistics Council

Ongoing with regular reporting to the Board on progress and outcomes

Vi. Produce 2011 Australian Logistics Council Year Book CEO - Australian Logistics Council

Ongoing with regular reporting to the Board on progress and outcomes

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A look at Our 2010 Policy Scope

The Australian Logistics Council has undertaken considerable policy development and advocacy over 2010. This will continue over 2011-2013.The Australian Logistics Council policy framework is constantly evolving and progressing. Each Australian Logistics Council submission, policy document or advocacy communication is taken to form part of the Australian Logistics Council Policy platform. The Australian Logistics Council policies include:

Policies and Submissions Objective

Submission to the nTC Discussion paper - Heavy Vehicle Pricing Options - Development and Assessment Framework - September 2010.

2

Submission on the victorian Department of Transport Discussion paper - Shaping Melbourne’s Freight Future - September 2010.

2, 3

policy paper - Using Information & Communication Technology to Increase Productivity in the Australian Transport & Logistics Industry - august 2010.

1

Submission on the Productivity Commission Study into Performance Benchmarking of Australian Business Regulation: Planning, Zoning and Development Assessments - august 2010.

1, 2, 3

Submission to the nTC on the Draft NTC National In-Vehicle Telematics Strategy: The Road Freight Sector - august 2010.

2

advocacy to Safe Work australia, hWSa and SCOT regarding fatigue management - support for NTC fatigue management regulations contained in the Road Transport Legislation (Compliance and Enforcement) Bill. WHS law and regulations should not conflict with the NTC fatigue management regulations to be administered by the new Australian Heavy Vehicle Regulator - June 2010.

2,3

Response to the Draft Regulatory Impact Statement and Associated Documentation on Performance Based Standards - 28 may 2010.

2

Advocacy to ATC on Safety codes and compliance with nationally consistent chain of responsibility legislation – May 2010.

1,2.3

Towards a Seamless Supply Chain - Submission to infrastructure australia and the nTC on the proposed national ports Strategy - may 2010.

1,2,3

‘A Seamless Economy - A Seamless Supply Chain’. Submission to infrastructure australia on a national Freight network plan - 5 march 2010.

1,2,3

Our Vision

To be the lead advocacy organisation to all levels of Government and industry on

freight transport and logistics supply chain regulation and infrastructure issues

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PO Box 20 DEAKIN WEST ACT 2600 P:+61 2 6260 3274 F:+61 2 6260 4978 E: [email protected]

www.austlogistics.com.au