The costs of disconnected warehousing and transport in Australia’s supply chain

In an efficient supply chain, warehousing and landside transport perform different roles but rely on each other to keep freight moving. When they are managed through separate systems, handovers take longer, labour and equipment are harder to coordinate, and trucks may leave with unused capacity.

These inefficiencies are then passed on as costs across the supply chain, from warehouse operators and carriers to freight forwarders and ultimately to their customers. Connecting warehouse and transport planning can help reduce some of these costs by improving freight staging and resource allocation.

How warehouse efficiency affects transport performance

Different types of warehouses exist to serve different commercial objectives and freight requirements: product warehousing, transit warehousing, bonded storage (short and long) and ecommerce fulfilment. CargoWise’s Global Warehouse Suite covers each one.

Different as they are, all warehouses serve the same common function: to receive, process, store and release freight in support of both inbound and outbound transport. Warehouse operations therefore need to be efficient, because they directly affect transport timing.

If freight is not consolidated in time, trucks depart part-loaded or wait at the dock. If inbound freight arrives late, then labour, dock space and warehouse capacity are wasted.

What the data shows at Australia’s ports

In Australia, where freight regularly travels across state borders and long distances, poor transport capacity decisions carry big consequences. In fact, the Productivity Commission has estimated that inefficiencies at Australia’s major container ports cost the economy about A$600 million a year.1

These inefficiencies become clear when we take a closer look at container logistics. Reported truck turnaround times at Australian container terminals average about 30 minutes,2 but that figure doesn’t include queuing time spent outside warehouse and yard gates.

Equally important is that only 10−25 % of container trucks at Australian ports engage in backloading or carry freight in both directions,2 meaning most return legs run empty. What this means is that the vehicle, fuel and the driver’s hours are paid for on a round trip that earns revenue on only one leg.

Where disconnected systems create inefficiency

The underlying problem is not usually the warehouse or the transport fleet itself. It is the lack of shared data between systems, meaning optimised moves are not possible. Furthermore, shipment updates are often passed on by phone or email, and by the time they reach the next team in the chain, they are already outdated.

A more effective model is one platform where shipment data, warehouse activity, yard movement and transport planning are managed together, where each team works from the same information.

That improves execution in practical ways:

  • Receiving teams know what is arriving before the truck gets to the warehouse
  • Loading teams catch missing or misallocated freight before departure
  • Drivers capture proof of delivery on mobile devices
  • Yard teams can plan container moves across the network to reduce empty legs.

Why industry integration matters

Logistics contributes 8.6% of Australia’s GDP.³ In an industry this big, every warehouse delay, empty run or underutilised vehicle adds cost across the supply chain. These costs are ultimately absorbed or passed on to customers through higher rates and less reliable service.

Operators that connect warehouse activity, container movement and landside transport on one platform can stage freight more accurately, reduce empty moves, improve equipment utilisation; and give importers, exporters and forwarders a more reliable supply chain.

To see how CargoWise’s Global Warehouse Suite and landside logistics capabilities can help your business achieve these goals, visit www.cargowise.com.

References

  1. Productivity Commission. “Lifting Productivity at Australia’s Container Ports: Between Water, Wharf and Warehouse.” Commonwealth of Australia, 2023, https://www.pc.gov.au/inquiries-and-research/maritime-logistics/report/.
  2. “Container Port Productivity Insight.” 25 Nov. 2024, https://ninesquared.com.au/insights/container-port-productivity-insight/.
  3. Australian Government, Department of Infrastructure, Transport, Regional Development, Communications and the Arts. “Freight & Supply Chains.” Australian Government, https://www.infrastructure.gov.au/infrastructure-transport-vehicles/transport-strategy-policy/freight-supply-chains.

 

MegaTrans is Australia’s largest integrated conference and exhibition dedicated to the logistics and supply chain industry.

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