The challenges of running a transport company in 2023 are many and varied and never let up. I was reading about the supply chain challenges and it’s worth understanding that the real issue stems from “cadence”: that is, the tempo or constant pace of work requirements.
Cadence can be life-giving but at this time it is more likely to be exhausting. We can deal with one issue in transportation, but not before the next issue hits us. The hits just keep coming. We keep feeling the ripple effects.
The global supply chain is undergoing a renaissance of risk mitigation. For decades there was a fixation and push across the global supply chain toward lean methodologies, efficiency, and cost savings. As competitors copied each other, that drove costs down further. This has created ongoing challenges for businesses.
Here at Transporting New Zealand, we have a team of people in both islands who are available to members to help steer their business journey and keep ahead. The team includes policy, membership, and sector advisors who listen and engage with members as trusted colleagues in the transport industry.
Recently, we have been visiting members around the country and listening to their concerns. These include roading conditions, permitting, attracting labour, good communications on the network, and increasing costs, with the end of the RUC discount coming up on June 30. Our team coordinate, help guide discussions and advocacy to the various sectors on behalf of all members, thank you to those members who give their time so willingly to help support the groups, your valuable insights are needed.
The economic issues we are facing this year and the ripple effect of increasing prices are concerning. We all need to remember that 93% of freight still gets delivered by a truck. Trucks may change in future with alternative fuels being developed, but they will still be needed. The supply chain heroes are those who keep the economy turning.
Our new Cost Model tool helps members understand their costs price themselves appropriately for the task they are performing. One member commented that by altering a truck and trailer combination they will improve the bottom-line productivity by a significant margin. This week we held the first two sessions introducing the model to members. A big thank you to those who participated – we have more sessions planned and are more than happy to accommodate requests to tailor something else if needed.
Last week, our Road to Success champion Fiona McDonagh talked about attracting new people to the industry and how there are pathways to grow the labour force and make transportation attractive. I have been astounded just how varied the roles there are within the transport community. There are opportunities now for people to change careers or join the sector. We are just a phone call away and happy to help.
Just a reminder the annual conference is being held from June 28 to 29 at the Lower Hutt Event Centre. The advisors will all be there and it will be a great opportunity to connect again with members and stakeholders. See here for details.
Have a safe long weekend, our first King’s Birthday Weekend for a long time.
Please feel free to contact me anytime: email mike@transporting.nz or call 027 55 66 099.
Mike McRandle is Manager, Regional and Sector Advisors at Ia Ara Aotearoa Transporting New Zealand.
