Connecting Trucks and Supply Chains Aus wide
The application of e-commerce to the logistics supply chain can provide significant economic benefits – the transport industry makes a significant contribution to Australia’s economic growth & its activites underpin the effectiveness of businesses, both large & small, because of it’s horizontal links across the economy. The most recent development in e-commerce is Internet commerce, which allows the benefits to be made more widely available throughout the industry.
The major reason given by road transport operators for not connecting to the Internet was the ‘lack of business benefits’. This provides a significant challenge to clearly identify and articulate the business case for using e-commerce. The biggest push for using e-commerce is expected to come from customer demand as this is beginning to drive Internet uptake in the road transport industry.
Trucks Online highlighted a number of facts about the industry in Australia –
- The transprot sector directly accounts for six per cent of Gross Domestic Product and five per cent of employment.
- Amount of road transport required to produce certain outputs range from 3% for machinery & mining, 6.7% for milk & meat, to 9% for non-metallic mineral products – demonstrating the important links to other sectors of the economy.
- There are just under 31,000 road transport fleets in Australia
> 68% operate one vehicle only
> 97.5% operate under 10 vehicles
> 0.2% operate 50 vehicles or more
- Loading/unloading delays are a major problem for 59% of operators
- Almost all operstors (99%) use mobile phones & fax machines
- Other technologies used by road transport operators are computers (90%), Internet connection (50%), on-board weighing (22%), bar-coding (10%) & Global Positioning Systems or In-vehicle Naviagation (2%)
- Internet connection ranges from around 80%) or large companies (fleets of over 100 trucks) to only 20% of small firms (fleets of less than 5 trucks)
- Those connected to the Internet use it for the following purposes:
> Email to other members of the company – 36%
> Email to customers – 59%
> Transacting business with customers – 32%
> Research – 57%
> Ordering/buying goods – 15%
Do not make use of the connection – 6%