Industry Statement: Transport and Logistics

Industry Statement: Transport and Logistics

Introduction

This report provides an overview of the importance and essential need of Transportation and Logistics (TL) across globally and exclusively its significance in Australia. The industry provides employment, and it is essential in generating individual earnings and adds a boost to Australian economy. The industry provides goods transportation through various forms on day-to-day which is essential to consumers. The transportation enhances for good infrastructure and logistics enhances warehousing. The industry needs a systemic management of finance & accounts, safety, and maintenance.

The industry

Transportation delivers consumer requirements and passengers travel through road, rail, air, and sea routes. For logistics and passengers management, the industry requires storage and accommodation. These includes warehouses, loading & unloading places, bus shelters, train stations, airports and shipping docks. Australian consumers and all businesses among all industries relies on transportation on daily life. Transportation is not only for a freight but also for passengers for travelling on all type of routes. In 2021-22 (IBIS world-Australia) roads freight will generate revenue of $65bn over the next five years. The rail freight (Australian Railway Association) in 2019 reported a contribution of $30bn with 165,000 workers where the wages paid was $16bn. There is no reliable information available about water freight whilst I wrote this report during my research, however, the revenue generation indicated about $1bn in 2018. Air cargo revenue generation (Australian Aviation) was $70m in 2019 and it is expected a revenue generation of about $7bn over five years from 2023 with an industrial employment of 8800 with 100% increase in revenue. As of 2020, contribution from roads is 39.15%, Rail is 18.07%, Water is 0.65% and Air is 42.16% in transportation industry. In this report, I would like to use road freight in transportation industry.

TL needs excellent and safe infrastructure where construction instruction gets boost to build reliable infrastructure. Australian Roads freight transport has an industry employment size of 726,300 with weekly earnings as $1249 with number of businesses as 57,650. The industry employs drivers who are majority in numbers and other ground staff at logistics management level such as admins, handlers, managers, accountants. Other range of indirect employees are from vehicle showrooms, repairs and maintenance businesses. There are about 57 qualifications, and 115 skill sets associated to roads transportation which also holds indirect employment. There is about 878,000KM of road length in Australia where various communities are dependent on household online shopping. 9M orders (Australian Standards) attracted TL in 2019. COVID-19 created dependency on online shopping which boosted road freight. Across various business in Australia through transportation (Australian Logistic Council, 2022) the contributions are around $140bn each year. Emissions are harmful for environment and hence some fleet owners are considering zero emission electric charged vehicles in near future. Transport Canberra is an example where the zero emission buses have already started. The major risk in transportation is number of accidental deaths due to fatigue and hence there is enforcement of risk management as guidelines set by Work Health & Safety (WHS) Act, Australia. A safe road infrastructure plays a significant role and hence the construction industry will get boost with employment & revenue to provide easy and safe transportation network. TL needs capital investment, finance management operational costs, wages and profit generation. Income and Goods and Services Tax (GST) will add on to Australian economy. In my opinion, investing on TL will benefit the employment in manufacture, sales, repairs and movement transports will keep moving the economies.

Professional Skills

Account professional understands the mechanics of TL who can effectively manage finance. The TL requires key accounting professionals to manage finance and accounts. For an effective management these professionals are required for an auditable finance. Fleet and WHS can be managed by a general manager.

Finance: Financial management will do land value capture (LVC) mechanisms for better tax, investment for return on investment (EMERITUS 2022) and contributions where objectives and wider goals are achievable. Finance management enhances for future growth and analyses before making any decisions. Innovative way finance such as public-private fund, tax eases etc is more effective than traditional finance but to be waited years ahead as there are constraints of tax, grants etcAccounts: Accounts management will indicate the performance of income, expenses, profitability and customer satisfaction (Institute of Quarrying Australia) which helps in decision making. Earnings can be adjusted for quality audit and income management. Accounting is the practice of records keeping and tax management which is responsible for audit.

Finance and accounting manager requires tertiary qualifications and for advises, Certified Practicing Accountant (CPA) whilst undergraduate degree enables as professional accountant. However, for a general manager, Bachelor of Business Management qualification will be ideal.

Conclusion

This report outlines the need for an essential finance and accounts management and also for the purpose of running the business, I chose this industry where my current qualification of Degree in Accounting for precisely managing finance, accounts and business in the medium transporting firm.

References

Medda, F., 2012. Land value capture finance for transport accessibility: a review.Journal of Transport Geography,25, pp.154-161.

Roukouni, A., Macharis, C., Basbas, S., Stephanis, B. and Mintsis, G., 2018. Financing urban transportation infrastructure in a multi-actors environment: the role of value capture.European Transport Research Review,10, pp.1-19.

Hyvnen, J., 2005. Adoption and benefits of management accounting systems: evidence from Finland and Australia.Advances in International Accounting,18, pp.97-120.

Arnas, Y., Lamtiar, S., Kurniawati, Z., Kurnianto, B. and Kalbuana, N., 2021. Factors Affecting Earning Management On Transportation Corporations In Indonesia.International Journal of Economics, Business and Accounting Research (IJEBAR),5(1), pp.165-174.

Van Heeswijk, W., Mes, M. and Schutten, M., 2019. Transportation management.Operations, Logistics and supply chain management, pp.469-491.

Stefansson, G. and Lumsden, K., 2009. Performance issues of smart transportation management systems.International Journal of productivity and performance management.

Critical Reflection

Type:Reflective essay

Method:Independent

Length:1,5002,000 words

Submission type:Word file/ Text file/ PDF file

Assessment description

Over the semester learners have been asked to prepare a series of reflections and an interview which have examined their emerging role in the business or commerce world and their transition into the world of work as well as how the transition to work has occurred in the past. Learners will consider their transition into the world of work as a business problem to be solved, in what ways the transition into work occurs, and what skills (other than their disciplinary skills) they will need to develop. Learners will also consider how the transition to work has changed from the past to the present and what type of multidisciplinary business and commerce skills (or employability skills) they will need to develop in order to assist them over the coming years.

https://www.oecd.org/els/soc/Links to an external site.https://www.oecd.org/future-of-work/reports-and-data/Links to an external site.The impact of AI on the workplace: Evidence from OECD case studies of AI implementation

The study shows that, to date, job reorganisation appears more prevalent than job displacement, with automation prompting the reorientation of jobs towards tasks in which humans have a comparative advantage. Job quality improvements associated with AI reductions in tedium, greater worker engagement, and improved physical safety may be its strongest endorsement from a worker perspective. The study also highlights challenges skill requirements and reports of increased work intensity underscoring the need for policies to ensure that AI technologies benefit everyone."

Assessment instructions

Essay QuestionCritically reflect on your own experience and imagine what types of education/practices/experiences you will need to engage with in order to take advantage of this opportunity to be part of a revived, reinvigorated, inclusive and equal economy. Use your essay to present a point of view in relation to the future of work in your chosen industry and the interdisciplinary nature of the modern working environment.

Describe how the future of work is looking for you in your industry (consider the readings you have been required to do)

What you may wish to consider (suggestions only):

The employability skills from your ePortfolio and your development of them

How the world has changed since your parents/grandparents left education and the different skills you need and how the accelerating pre-existing trends such as automation and digitalisation are reshaping the way human labour is combined with new technologiesThe value of planning your future and having an understanding of the potential challenges which may be before youWhat is the future of work?

What are employability skills?

Which are the most important employability skills for you to develop?

Why?

Identify what research you would need to do to complete this task.