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Logistics is no longer a back-office function; it’s a boardroom priority!
Our latest publication, authored by Joost Habing, explores how Australian and New Zealand businesses can utilise logistics to gain a competitive edge. It also includes a practical Executive Logistics & Procurement Diagnostic Checklist to help leaders assess their organization’s readiness.
The Tyranny of Distance
Australia and New Zealand (ANZ) are geographically separated from most of the world’s major consumer markets in Europe, North America, and parts of Asia. This results in shipping routes that are naturally longer and more expensive than those for businesses situated in the Northern Hemisphere.
For ANZ companies, every container, pallet, and parcel must cover thousands of extra kilometres, resulting in higher freight costs, longer lead times, and an increased need for strategic planning.
Reliance on Air and Ocean Freight
With no land borders to major trading partners, ANZ shippers rely entirely on air and ocean freight.
This dependence makes them highly vulnerable to disruptions in these sectors, whether caused by port congestion, fuel price volatility, or industrial action.
A robust and diverse logistics strategy isn’t just a competitive advantage—it’s essential to keep the supply chain running.
Competitiveness and Landed Costs
To compete with businesses in other parts of the world, ANZ exporters must be proficient at managing their landed costs.
While a product’s manufacturing cost might be competitive, the final price to a customer is significantly impacted by freight, tariffs, and customs duties.
An optimised logistics strategy can offset the inherent disadvantage of distance, making products competitive on a global scale.
Strategic Importance of Logistics
For businesses in ANZ, logistics is a key concern for top executives, not just a back-office task. The cost and reliability of freight can determine the success or failure of a product launch or a new market entry.
It is the most crucial factor influencing whether a business can operate effectively in global trade. That is why having a strategic understanding of logistics is vital for their survival and growth.
Logistics Sourcing: A Quick-Fire C-Suite Check
This diagnostic is a quick, simple check to see if your top team is genuinely aligned on logistics. If you’re getting a “yeah, nah” to most of these, it’s a good sign there’s more work to do.
Do we have someone in the C-suite with a solid understanding of our supply chain and logistics? A Chief Supply Chain Officer, or someone leading on it?
Why it matters: Having a dedicated leader at the top shows everyone that logistics isn’t just a side project—it’s an essential part of how you function and a key aspect of your strategy.
When you’re discussing your game plan for the year, can you clearly explain how your logistics strategy helps you make more money, not just save a few bucks?
Why it matters: The top teams see logistics as a competitive advantage, not just a cost to cut. It focuses on creating value, delivering products to customers quickly, and simply doing it better.
Are you regularly reviewing your logistics figures in board meetings? And can you identify a few key ones that aren’t solely about what you’re spending?
Why it matters: If logistics only come up when someone complains about the bill, you’re missing the bigger picture. Metrics such as on-time delivery rates and order accuracy reveal much more about the business’s performance.
When discussing major risks to your business, such as a significant storm or a major overseas upheaval, is your logistics plan a key part of that conversation? And do you have a solid plan for how you’ll adapt if things go wrong?
When launching a new product or entering a new market, does your logistics and sourcing plan form part of the initial pitch from the outset?
Why it matters: Treating logistics as an afterthought is a surefire way to cause chaos. The best teams recognize that prioritising logistics early on is vital for giving a new venture the best chance of success.
Get Started
International logistics is no longer a background function; it’s a boardroom agenda. The businesses that thrive in global trade are those that treat logistics as a core part of their growth strategy, not just a cost to control.
Ask me about my executive checklist to see if your organization has the insights, processes, and tools needed to make smarter logistics decisions.
The question isn’t if you can afford to invest in logistics strategy—it’s whether you can afford not to. For more insights or to discuss your logistics strategy, contact Joost.
