Summary The performance of the logistics system has a major impact on the cost structures, revenues, service quality and competitiveness of Australian industry. Logistics activities have evolved rapidly in response to changes such as globalization, general industry restructuring, new production processes and technological advancements. Many companies, government agencies and joint industry/government organizations are developing programs to improve logistics performance in Australia. The initiatives include the Freight Logistics Industry Action Agenda. This report develops a general framework for analyzing logistics activities in Australia. This report will also examine the importance of third-party logistics for Australian businesses. We will also look at the emergence of 3PL in Australia and the benefits businesses gain by adopting 3PL. The most important supply chain trend affecting businesses in Australia.IntroductionEver increasing competition in today's global markets, introducing new products with shorter life cycles, faster diffusion and proliferation Increased information and customer expectations have forced companies to invest and focus attention on entire supply chains. Today, some companies are expanding their reach beyond traditional supply chain boundaries to engage in activities beyond their own sphere of control. They do this by organizing competitive networks of businesses to develop and access supply chain capabilities for the organizations that are part of these value-added networks. The scope of this research report covers aspects ranging from internal logistics, with a focus on productivity, cost savings and functional excellence...... middle of paper ...... Ellram , LM 1998, Fundamentals of LogisticsManagement, Irwin/McGraw-Hill, BostonLangley CJ Jr. 1992, 'The evolution of the logistics concept', in M. Christopher (ed.), Logistics: The Strategic Issues, Chapman & Hall, London. Logistics in Australia: A Preliminary Analysishttp://www.btre.gov.au/info.aspx?ResourceId=26&NodeId=22Date accessed: 30 April 2008Malone, P. 1999, Business to Business Electronic Commerce Case Study: Transport and Logistics — Australia, Presentation to the Working Group for the OECD Information Economy Group, National Office for the Information Economy, Canberra. Supply Chain Review 2000, Who's Who in Contract Distribution 2000, December, vol. 9, no. 6, pp. 36-38. Toll Holdings 2000, Concise Annual Review 2000, Toll Holdings, Melbourne.