Inefficient Road Freight Costs Regional Businesses
Australia’s inefficient road transportation system is estimated to cost the economy billions per annum as well as creating a significant impact on our supply chain and sustainability due to empty trucks on our roads.
It is reported that 95% of Australia’s road freight is moved via heavy vehicles and 70% of these vehicles travel between capital cities and regional areas. Getting freight for unusual or smaller jobs to country and regional hubs has traditionally been a challenge in terms of cost and turn around times.
An Innovative Solution
Telstra backed Australian startup FreightExchange has positively disrupted the freight industry with an innovative digital platform designed to connect shippers with carriers in real time. Carriers can, free of charge, advertise spare capacity in their trucks from the centralised platform, which means shippers can access cheaper rates to regional areas anywhere in Australia. The platform also services metropolitan centres.
To date, this innovation has over 700 carriers and nearly 2,000 business shippers. In the first 12 months of trading, FreightExchange has helped to get many hundreds of trucks off the roads, as well as reduced expenditure for key customers by 25%. Importantly, it has made a significant contribution to the development of regional Australia, while at the same time improving sustainability and reducing our carbon footprint.
What Our Clients Say
Frank Oscan of Oscan Transport has started working with regional councils to service their freight requirements to build community centres and parks, as well as improve roads. Items he ships includes plastic bollards, fencing and flooring. Until recently, that was almost impossible, as Frank advises:
“Before I started working with FreightExchange it was a very difficult task to send freight to regional areas. Clients were incredibly frustrated as they couldn’t get things transported to and from their place in the timeframes they required, which really affected their work productivity and the community itself.”
Frank also advised of the positive impact this has had on the reputation and growth of his own business.
“My company is all about service – service comes first. Now I can deliver to these customers who may be in remote or out of the way places and still give them excellent turn around times, and I don’t have to get on the phone and spend hours ringing around to find the right solution, it’s all online.”
The Benefits To Frank And His Clients
Frank advises, “My business to regional areas has increased by 100%, and I believe I have just started to tap into this market. This could not have been achievable without the FreightExchange service. I don’t have one unhappy client, which is unique in the freight industry. This platform is a win win all round – I am very happy.”
- Frank is now servicing regional business councils to build better roads, community centres and parks
- This opportunity generated by the FreightExchange platform is now a key revenue stream and in a short period of time, Frank has now acquired many new clients
- Due to the real time feature of the digital platform and its extensive national carrier network, service delivery levels to regional and rural Australia are now measured in days turnaround, rather weeks, which significantly improves customer satisfaction and productivity, and at the same time keeps Frank’s costs down
- Frank generates costs savings of up to 25% for his business to regional areas while growing at the same time. There is no manual phone chasing to find the right carrier to fill the job, instead bookings are online, in real time
In just three months, Oscan Transport’s bookings have filled dozens of empty trucks which is contributing to a better Australia as it reduces waste and our carbon footprint as well as alleviating congestion on our roads.
Find Out More
IBISWorld Industry Report I4710,Rail Freight Transport in Australia, September 2013, Caroline Finch