Alan J Stenger

Coming from a lifetime spent primarily in the US, my wife and I have had a wonderful experience here!  I think I’ve had an impact on supply chain and logistics practices in New Zealand, but I have also learned a great deal about business, and life, outside the United States.

Among other things, I have established the University’s Centre for Supply Chain Management. Initiated less than a year ago, the Centre now has 11 corporate and governmental organizations as members that provide support through annual donations. Its purpose is to develop and disseminate world-class knowledge and practices in supply chain management applicable to Australasian economies.

New Zealand is far more dependent on international trade than is the US. Yet it faces numerous challenges due to its small size and remote location—and the location issue is obviously exacerbated by the rise in energy costs and carbon issues.

Jens Madsen, CEO Ports of Auckland and Alan Stenger.

While supply chain management has much to offer the country, it is not a silver bullet. We can’t do a lot to mitigate high energy costs—they are what they are.  But we can seek to eliminate many of the inefficiencies created by firms in the supply chain not cooperating or collaborating to reduce redundant inventories and production capacity, as well as wasteful transportation practices.

Supply chain management is all about taking a “total systems” approach to the chain from the original raw material suppliers through to the ultimate consumers. Generally numerous, independent firms are involved in this chain—primary goods producers, manufacturers, distributors, retailers, and a variety of logistics companies.  These firms can choose to act only in what they perceive to be their own best interest, or they can collaborate for the good of the ultimate customer. Often the latter path leads to more profits for all.

Collaboration and the sharing of information, and even assets, across the chain allows the more productive use of resources, as well as the elimination of “just-in-case” inventories and facilities.  This also ensures that the party who can do the job best will actually be the one to do it.

Many New Zealand managers believe that their firms are too small to employ good supply chain management practices. On the contrary, my experience is that small firms can more easily implement such practices because these firms are not encumbered with the bureaucracies of the large firms.

Let’s be realistic, however. The small number of players in the New Zealand market often creates commercial sensitivities. In addition, New Zealand conditions are challenging - obviously the topography severely constrains the transportation and ports network, particularly with regard to highway and railway infrastructure.

But these facts do not preclude us from trying to make the most of the many positives New Zealand possesses: talented and creative people, a great image around the world, and the tenacity to take advantage of these assets.

The Chair in Logistics and Supply Chain Management at The University of Auckland is funded by Ports of Auckland with a $1 million grant over five years. Ports of Auckland funded the chair to combine academic knowledge and insight with commercial knowledge, practice and experience.

Professor Alan Stenger, Outgoing Ports of Auckland Visiting Professor of Logistics and Supply Chain Management at The University of Auckland Business School.