"Supply chain and freight logistics is about complex systems of trade. It is a high tech, extraordinarily sophisticated industry with fabulous people."
Dr Hermione Parsons is the Chief Executive Officer of the Australian Logistics Council. She is a supply chain and freight logistics specialist with executive management experience in public and private sector organisations.
Hermione’s three-decade long career has focussed on end-to-end supply chain strategy, complexity, planning multimodal infrastructure and problem-solving freight logistics in metropolitan, regional and international markets. She has extensive executive management experience in port landside logistics, multimodal freight infrastructure, competition and regulation analyses, and supply chain reengineering in the food industry.
Hermione founded and led an acclaimed university research and development centre across two universities working to solve the systemic and emerging challenges facing industry. During this time, she led many ASEAN and APEC programs focusing on end- to-end supply chain issues. She is also the Co-founder and Co-chair of the industry funded Wayfinder: Supply Chain Careers for Women initiative.
Hermione is a Non-Executive Director of the Melbourne Market Authority and Austrade’s Export Freight Advisory Board. Previous roles include Supply Chain Advisor to Asia Australia Society, Non-Executive Director of Food Innovation Australia Ltd (FIAL) and a member of the National Agricultural Labour Advisory Committee, the National Food Waste Strategy, Australia’s Food Traceability Program and VicTrack Board’s Freight Logistics Group.
Hermione has been the recipient of many industry, university and business awards and in 2020 was recognised as one of the 100 Most Influential Women in Supply Chain - Global Women Supply Chain Leaders Awards by B2G | Paris | Bahrain | Singapore.
The Australian Logistics Council is the peak industry organisation representing end-to-end supply chain and freight logistics issues. We are focused on the ‘whole’. Our members are the freight and transport providers, companies like Woolworths and Coles, all of the major ports, and the big logistics operators including Linfox and Toll. We are focused on capturing the connections between rail, road, air, and sea, with transport being just one function of the complex network we are dealing with.
I have always worked in supply chain logistics. I was a geographer, before embarking upon an urban planning masters degree, specialising in integrated port logistics. My PhD focused on the fresh produce supply chain industry and I joined a start-up company within the fresh fruit and vegetable industry focused on B2B training. Following this I worked as a technical specialist to help build an understanding of supply chain and freight logistics within the Victorian Government, before becoming the Manager Port Systems and Logistics with the Port of Melbourne. In this role, I was responsible for the Port’s landside strategy.
After my work at the Port, I was offered the job of creating a research and development centre for supply chain and freight logistics and in this role we deliberately tackled the hardest problems to solve, working closely with industry in all we did. We recognised that no company alone could solve the issues at hand and we identified the top three concerns. One of these was the fact that there was no pipeline of people coming into the industry, with a particular shortage of women. Most of the women’s programs were focused on those already in the industry, not attracting them.
A problem we have in Australia is that supply chain and freight logistics historically was a hidden enabler and considered ugly and dirty. But it is not. It is a high tech, extraordinarily sophisticated industry with fabulous people. As a society we are still immature in our understanding of supply chain and freight logistics. Countries like Israel, the Netherlands, Germany and the United States have a strong understanding of international trade and the role of maritime, aviation, road, rail and intermodal, but we are lagging.
Supply chain and freight logistics is about complex systems of trade. Transport is the simplest element, involving the physical movement of goods but there is so much more involved.
When COVID-19 hit, suddenly everyone knew about supply chain and freight logistics. The veil was lifted. But now that the crisis has passed, this understanding is diminishing and that impacts the workforce pipeline.
I welcome how the Government is starting to address skilled migratory issues because in supply chain and freight logistics we need skilled labour at the high end. We rely on complex systems for every bit of trade – import, export, and domestic.
In addition, the Federal Government is reviewing the National Freight and Supply Chain Strategy (NFSCS), which was formed in 2019 but not properly activated by the states. We are partnering with Government on this review, and it is super positive because we will be looking at productivity, resilience, sustainability, and awareness.
In 2005 when I was working with the Victorian Government, I stressed that across the western developed world the truck driver shortage was endemic and represented one of the most significant skill shortages. It was felt that I was overstating the issue and the facts were ignored. So now we get to the situation we are in where those skill shortages are crippling our country. One in five trucks Australia wide are waiting for a driver, and the proportion is even higher in remote areas.
A key issue is that we don’t have competency-based training. If you are in the army and you are an 18-year-old you can learn to drive a tank or a big army truck on the basis of competency but for the rest of truck driving in Australia, it’s based on years of experience and moving up from one level to the next. The change we need in training is happening in bits and pieces, but it is very slow and disaggregated.
We (the ALC) are strongly of the view that diversity in our industry should reflect global diversity - it should be based on a true representation of our society and all its factors. At the moment, we are heavily male dominated, and it’s the second oldest industry in Australia by average age of worker. In our work, we are focusing on encouraging men to talk to other men about why women need to come into the industry across roles and the brilliant contribution they make.
We have also researched why women don’t come into supply chain and freight logistics as well as why they do join the industry, and why they stay or leave. The study involved over 100 women and found that the women who stay in the industry love it, However, it also found they often put up with bad behaviour linked to systemic gender bias across the workplaces. Cultural change is needed as well as highlighting the opportunities available.
One of the first initiatives for the Wayfinder: Supply Chain Careers for Women was the creation of a digitised career map, featuring 150 roles across 18 sectors, including each of the transport sectors. Each position is described by a career, includes salary information, and case studies of women speaking about their roles and what they love about their work. It allows people to link to a company’s sustainability page and a connection to an organisation’s jobs board and was created with industry.
We also have an awareness program where we go out to community groups including Dress for Success, the Salvation Army, the Refugee Association and talk about what the supply chain and freight logistics industry is, its importance to society, and the roles and salaries on offer.
In 2017 I led the creation of the pipeline program and very quickly we had 12 to 14 major corporations funding it with us.
What I love about my work is that it is utterly fascinating. It involves understanding complex systems of commerce, the use of space and technology, people, and skills.
… a greater clarity across the transport industry of the need for connectivity throughout supply chain and freight logistics and more balanced prioritisation by governments of passenger and freight transport. Interconnectivity is the key.