Modern Australian
Men's Weekly

.

What will freight and supply chains look like 20 years from now? Experts ponder the scenarios

  • Written by Roberto Perez-Franco, Senior Research Fellow – Supply Chain Strategy, Deakin University

The Australian government is developing a national freight and supply chain strategy. As part of that effort, we created a set of scenarios describing what Australia’s future might look like 20 years from now. In evaluations by a large number of experts of all the future drivers of change we identified, two emerged as the most powerful and uncertain: widespread use of automation, and increased pressure to become environmentally sustainable.

What will freight and supply chains look like 20 years from now? Experts ponder the scenarios Australia Post demonstrated its first parcel delivery drone in 2016. Luke Costin/AAP

We also explored what Australia should do to remain successful in each of these possible futures. Each scenario was crafted as a rich description of the future, full of elements relevant to supply chains and freight.

To illustrate what the world might look like in each of these futures, several “news articles” accompany the scenarios. They tell us of a fleet of robots that deliver parcels by air and ground directly to Australian homes. They describe a container of Australian wines travelling from Victoria to Shanghai without human intervention, using autonomous ships and vehicles.

Read more: Guilt-free online shopping: can parcel deliveries ever be truly carbon-neutral?

In one scenario, China has become the sole dominant power in its half of the planet. In another, the world economy has fragmented into blocks, with barely any trade between them. Cyber-attacks, terrorism and slander are used as weapons to disrupt supply chains in one scenario. In another, a whole new generation of consumers, the Alphas, demands high levels of service and fast delivery in everything they buy.

What will freight and supply chains look like 20 years from now? Experts ponder the scenarios Container terminals have long used autonomous vehicles and machinery, and autonomous ships are on the way. Quistnix/Wikimedia, CC BY

How did we create these scenarios?

We started by asking 52 experts in freight and supply chains about things they expect will be different two decades from now. These interviews revealed more than 200 future drivers of change. We validated these in a survey with an even larger group of experts.

We then used 32 families of these drivers as the building blocks to create four scenarios:

  1. The Rise of the Machines – a world where technology dominates everything we do
  2. Enter the Dragon – China is the dominant force in an increasingly fragmented world
  3. Flat, Crowded and Divided – Australia’s population has soared, to the point that easy access to cheap labour has nullified any hopes of a technological revolution
  4. Big Brother Goes Green – the effects of climate change are increasingly real, and both governments and savvy consumers demand that companies meet high environmental standards.
What will freight and supply chains look like 20 years from now? Experts ponder the scenarios Australian miners are increasingly reliant on automation, including ore trucks, but resource exploitation also adds to sustainability pressures. Rio Tinto/AAP

We made sure that each scenario was plausible and internally consistent. The scenarios were designed to be very different from the present and from each other, and to complement each other as a group.

While these scenarios are fun to read and thoroughly grounded in data, they are not predictions. Their purpose is not to forecast what the world will look like in 20 years.

Instead, the scenarios present us with several versions of what the world might look like. Their purpose is to help us prepare for what the future could bring. I like to think of scenario planning as a vaccine against future surprises.

Read more: To service global trade, today's ships and cargo are smarter than ever

The four scenarios served as the stage for a series of workshops conducted across Australia with a total of 90 experts. In these workshops, the experts discussed the challenges and opportunities each scenario presents for Australia’s freight and supply chains. They proposed ways for Australia to be successful in each scenario, and compared notes on suggestions that worked well across multiple scenarios.

We collected more than 15,000 words’ worth of handwritten expert recommendations in our four workshops. We transcribed and analysed all of them, and prepared a complete summary of the most frequent and robust ideas. These are included in our project’s final report.

So what do the experts recommend?

In the experts’ recommendations, it is easy to identify three major themes that are common to all four scenarios.

The first is the ever-growing importance of data. For Australia to be successful in any of the futures we envisioned, large amounts of relevant, timely and reliable data must be gathered and shared. This will require open and common data standards to be developed. The need to protect confidentiality will have to be balanced with the need to share data.

The second major theme is the need to educate for the future. Training in robotics, automation, artificial intelligence (AI) and data analysis should be widely available. A focus on science, technology, engineering and maths (STEM) should start in Year 1. Workers who are displaced by new technologies should be retrained, so they can re-enter the workforce.

Read more: Coming soon to a highway near you: truck platooning

The third major theme is the need to rethink regulation. For Australia to be successful in any of the futures we explored, it is necessary to simplify, standardise and harmonise regulations across levels of government and geographies. Regulations, and the process to create them, must become more flexible and agile, so as to promote innovation.

There are other robust recommendations that, according to the experts, are necessary in all four scenarios.

One is to make exports a strategic priority of national importance. Making exports faster and easier was recommended.

Another is the need for cities to include logistics in their plans from the start, not as an afterthought.

The many insights obtained in our project are informing the freight and supply chain strategy that the Australian government is creating. These will help those making long-term decisions to avoid future surprises that might not have been anticipated without a systematic examination of the many possible futures before us.

Authors: Roberto Perez-Franco, Senior Research Fellow – Supply Chain Strategy, Deakin University

Read more http://theconversation.com/what-will-freight-and-supply-chains-look-like-20-years-from-now-experts-ponder-the-scenarios-98249

5 Essential Tips for Hiring Gold Coast Plumbers

Finding the best plumber on the Gold Coast can be as complex as navigating a network of pipes, requiring an expert who is capable, reliable, and s...

Hidden Costs of Moving You Need to Budget For (And How to Avoid Them)

Moving house ranks among life's most busy experiences, and discovering unexpected expenses along the way certainly doesn't help with stress levels. Wh...

Understanding Australian Building Regulations: What Every Mornington Builder Wants You to Know

If you live on the Mornington Peninsula, you likely already feel the risk of bushfires,hot, dry summers, nearby bushland, and epic wind events. That...

Top 5 Home Exercises Recommended by Chiropractors for Better Posture

In today’s world of endless screen time and back-to-back Zoom meetings, it’s no surprise that posture-related issues are on the rise. From achin...

Simple Home Exercises to Manage Chronic Pain and Improve Mobility

Living with chronic pain doesn’t have to mean a life of limitation. Many people struggling with persistent discomfort find themselves moving less...

Smart Renovation Tips for a Sleek, Low-Maintenance Interior

In a world where time is tight and stress is high, our homes should feel like a refuge not another to-do list. That’s why smart renovations are tr...

Stay Cool in Queensland: The Complete Guide to Choosing the Right Air Conditioner

Introduction Queensland’s warm, humid climate makes a reliable air conditioning system an essential part of daily life. Whether you’re creating a...

Proving Partner Visas with Lawyers and Solid Evidence

You’re ready to build a life with your partner in Australia but the visa process quickly turns something personal into something official. Suddenl...

The History and Philosophy Behind Osteopathic Medicine

Osteopathy is more than just a hands-on approach to relieving pain—it’s a holistic health philosophy with roots in history, science, and a deep ...

Common Bathroom Renovation Mistakes and How to Avoid Them

Renovating a bathroom can be one of the most rewarding home improvement projects, offering both enhanced functionality and a fresh aesthetic. Howeve...

5 Simple Home Modifications to Support Occupational Therapy Goals

Every year, thousands of Australians face mobility challenges, chronic pain, or sensory issues that make daily tasks difficult. Simple changes at ho...

The Cost of Converting a Shipping Container into a Liveable Space

Container conversions often require more planning and labour than expected Early costs include foundations, framing, and structural reinforceme...

Marriage Celebrant for Modern Lovers Who Want Something Different

Many couples today feel pressure to follow the same wedding traditions their parents or grandparents did. They might sit through long ceremonies that ...

Why Everyone’s Signing Up for Fitstop’s 6-Week Challenge (Again)

Hint: It’s not just for the gains. Somewhere between the endless TikTok fitness hacks and the unrealistic “30-day shred” promises, we forgot ...

The Mental & Financial Benefits of Minimalist Caravan Travel

Minimalist caravan travel has grown in popularity, not just for its practical appeal but also for the sense of freedom it brings. With the rise of c...

Sydney Property Lawyers: Your Complete Guide to Smooth Transactions

Navigating the Sydney property market can feel like traversing a minefield, can't it? The process, laden with legal jargon and complex procedures, o...

Electrician Perth: Your Go-To Guide for Home Electrical Safety

When it comes to keeping your home safe and sound, electricity is something you simply can't afford to ignore. Faulty wiring, outdated switchboards...

Why More Homes and Businesses Are Choosing an Electric Sliding Door

Convenience, aesthetics, and technology often go hand in hand when it comes to architectural choices. One solution that delivers all three is the el...