Summary Logistics system performance has a significant impact on cost structures, revenues, service quality and competitiveness in Australian industry. Logistics businesses have evolved rapidly in response to changes such as globalisation, general industry restructuring, new production processes and technological advances. Many businesses, government agencies and joint industry/government bodies are developing programs to improve logistics performance in Australia. Initiatives include the Action Agenda for the Freight Logistics Industry. This report develops a broad framework for analyzing logistics activities in Australia. This report will also examine the importance of third-party logistics to Australian business. We will also look at the emergence of 3PL in Australia and what benefits businesses gain from adopting 3PL. The most significant supply chain trend impacting business in Australia. Introduction Increasing competition in today's global markets, introduction of new products with shorter life cycles, faster dissemination and proliferation of information, and higher customer expectations have forced businesses to invest in and focus on entire supply chains. Today, some companies are extending their reach beyond traditional supply chain boundaries to engage in activities beyond their sphere of control. To do this, they organize competitive networks of businesses to develop and access supply chain capabilities for those organizations that are part of such 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...... half way...... Ellram, L.M. 1998, Fundamentals of Logistics Management, 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=22Accessed 30 April 2008Malone, P. 1999, Business to Business E-Commerce Case Study: Transport and Logistics—Australia , Presentation to the Working Group for the OECD InformationEconomy Group, National Office for Information Economics,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.