RWTA Cold Running Magazine - Apr '16 by Refrigerated Warehouse & Transport Association of Australia Ltd

APRIL 2016

OFFICIAL MAGAZINE OF THE REFRIGERATED WAREHOUSE & TRANSPORT ASSOCIATION OF AUSTRALIA LTD

75th RWTA National Conference and Exhibition PG Energy - Big Savings to Refrigeration Businesses Frozen - How fresh stays fresh Authentic people make Authentic Leaders CoR - Policies, Procedures & ‘Reasonable Steps” Why should you audit your warehouse?

COLDºRUNNING I APRIL 2016 1

Are you getting the service and quality staff you’re paying for? Rush Group are happy to discuss your needs at a time convenient to you. • Recruitment Specialists – Warehousing and Logistics • National Network of Local Branches • Specialists in Labour Hire, Permanent & Project Recruitment

CALL: 1800 735 055 Or contact Michael Goralski 2 APRIL 2016 I COLDºRUNNING

0419 320 510

mgoralski@rushgroup.com.au

[ MESSAGE FROM EXECUTIVE OFFICER ]

Refrigerated Warehouse & Transport Association of Australia Ltd The Refrigerated Warehouse & Transport Association of Australia Ltd (RWTA) represents both the warehousing and transport sectors involved in the storage, distribution and transportation of temperature controlled products in what is known as the Australian Cold Chain.

Refrigerated Warehouse and Transport Association of Australia Ltd PO Box 5 South Melbourne VIC 3205 Phone: 03 8620 2802 Fax: 03 9645 6445 Email: info@rwta.com.au Website: www.rwta.com.au ABN 63 061 391 179 ACN 061 391 179

BOARD OF DIRECTORS EXECUTIVE Chairman David O’Brien Vice Chairman Jeff Hogarth Immediate Past Chairman Paul Fleiszig Company Secretary Russell Sturzaker CORPORATE DIRECTORS Jeff Hogarth – Americold Rod McQueen – Montague Paul Fleiszig - Oxford Cold Storage Phillip Whitecross – Rand Refrigerated Logistics Greg Holt – Swire Cold Storage STATE DIVISION DIRECTORS NSW Division – Steve Donaldson VIC Division – Greg Lucas QLD Division – Rachel Corcoran SA Division – Rick Skewes WA Division – Russell Sturzaker TAS Division – Russell Sturzaker ACT Division – Russell Sturzaker NT Division – Russell Sturzaker

STAFF Executive Officer Russell Sturzaker Administration Officer Anne Thornton COLD RUNNING Editor Russell Sturzaker Email info@rwta.com.au Production Michael De Lai Copy Deadline Next Issue 1st June for June 2016 Issue Advertising rsturzaker@rwta.com.au Individual Contributors Ray Hodge, Mike Wood – LATUS Logistics, Russell Sturzaker - RWTA, Ken Ackerman, Jack Bills, Daniel J. Edelman. All material appearing in Cold Running magazine is copyright. Reproduction in whole or in part is strictly forbidden without prior written consent. Freelance contributions and submissions are welcomed by this magazine. No responsibility is accepted for unsolicited manuscripts, photographs, etc. The opinions expressed by contributors are not necessarily those of Four Wheel Drive Victoria. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. The publisher reserves the right to omit or alter any article or advertisement. Advertisers agree to indemnify the publisher for all damages or liabilities arising from the published material.

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In this issue of Cold Running we have two feature articles, the first “Frozen – How Fresh Stays Fresh, a Frozen Food Consumer Segmentation Study conducted in the US in 2012, with a comparative segmentation study conducted in 2015 looking for any changes in the behavioral profiles of the relevant segments. Our second article titled “Authentic People make Authentic Leaders” has been submitted by new National Associate Member – Ray Hodge Consulting. Ray is an expert in the field of Business Consulting, and improving critical business efficiencies, and I would recommend both of these articles to you... Also in this issue we have articles on how PG Energy can help deliver “Big Savings to Refrigeration Businesses, Dematic acquires NDC Automation, and also receives top Honeywell partner recognition. Also we have an article on “Why you should Audit your Warehouse followed by CoR - “Policies, Procedures and Reasonable Steps” by Mike Wood of LATUS Logistics. Since our last issue of Cold Running we have had a few changes at Board level with resignations on 2 Dec 2015 of Darren Mahoney (B.E. Campbell Pty Ltd) NSW State Representative, and on 17th March 2016 of Gabor Hilton (Oxford Cold Storage) RWTA Corporate Director. While 22 February 2016 saw the appointment of Stephen Donaldson (S&D Logistics Pty Ltd) as NSW State Representative, (see page 5 for more information). The 75th RWTA National Conference and Expo has been announced, and is to be held at the Sheraton Grand Mirage Resort, Gold Coast, Queensland from Wednesday 31st August to Friday 2nd September 2016, with packages available to delegates to arrive early or stay on following the conference. Following a very successful, and well received conference last year at the Stamford Grand in Adelaide, we have put together some great new initiatives for our 2016 event. Sponsorship and Exhibitor Packages, providing excellent opportunities for member companies to be a part of the conference are to be sent at the end of April.

Once again I would like to draw member’s attention to the new RWTA Member Portal, which contains some great member benefits along with supporting our online event registration. These new benefits have been added to enable us to better communicate with you our members, so please log in and have a look at the member portal, we would love to her what you think, and look forward to receiving your suggestions as to what else you would like to have added to the site.

During the past few months I have had the pleasure of attending three excellent State Division Events in New South Wales, Queensland and South Australia, all were extremely well attended, and you can read about them on page 48 - 49 of this issue. Over the past week I have been in Las Vegas attending the 125th GCCA (IARW-WFLO) Annual Conference and Expo. A truly fabulous event, and there will be a complete write up on what transpired at the conference in the June Issue of Cold Running.

STOP PRESS At the 125th GCCA (IARW-WFLO) Annual Convention and Expo held in Las Vegas from 16th – 19th April 2016, our 2015 Frank Vale Award Winner Melissa Hunt (S&D Logistics Pty Ltd) was crowned the 2016 GCCA Next Gen Award Winner. Melissa was awarded the title after defeating candidates from both the UK and the USA. Our congratulations go to Melissa on winning this prestigious and important award, a full story on the Conference and Melissa’s win will appear in the June issue of Cold Running. Russell Sturzaker - Executive Officer

In this issue 3 Message from the Chief Executive Officer 5 - 6 RWTA News 7 Frank Vale Award 8 - 9 75th RWTA National Conference & Exhibition 10 - 11 PG Energy Article 12 - 21 Frozen - How fresh stays fresh 25 - 30 Authentic people make authentic leaders 34 - 35 CoR - Policies, Procedures & “Reasonable Steps” 36 - 37 Why should you audit your warehouse? 38 - 40 Member News 41 International News 42 - 45 News from GCCA 47 Coming Events 48 - 49 State Events 50 Contacts COLDºRUNNING I APRIL 2016 3

4 APRIL 2016 I COLDºRUNNING

[ RWTA NEWS ]

2015-16 RWTA Board Appointments & Resignations Resignations 17 March 2016 - Gábor Hilton (Engineering Manager - Oxford Cold Storage) Corporate Director / Board Member The Board would like to thank Gábor for the enormous contribution that he has made to the RWTA. He has been associated with the Cold Storage Assocation of Victoria and the RWTA for nearly 50 yers and received a Life Membership a few years ago. Gábor, with his Electrical Engineering degree assisted several companies in designing cold stores, including building design, refrigeration, lighting, racking, construction and product movement. He will still be actively involved with the RWTA Energy Efficiency and Environment Subcommittee and upon request, happy to discuss technical issues.

Corporate Director Gábor Hilton Engineering Manager (Oxford Cold Storage)

NSW State Representative Darren Mahoney (B.E. Campbell Pty Ltd)

2 December 2015 - Darren Mahoney (B.E. Campbell Pty Ltd) – NSW State Representative The Board would like to thank Darren for his time as NSW State Representative to the RWTA Board.

New Appointments The RWTA would like to to announce the appointment of a New Director and New South Wales Divison Representative to the RWTA Board. On behalf of all members we would like to congratulate Stephen on his new appointment. 22 February 2016 – Stephen Donaldson (Managing Director - S&D Logistics Pty Ltd) NSW State Representative

NSW State Representative Stephen Donaldson (S&D Logistics Pty Ltd)

The official journal of the RWTA

To showcase your business or advertise in Cold Running, call the RWTA’s Executive Officer, Russell Sturzaker on 03 8620 2802 or email: rsturzaker@rwta.com.au COLDºRUNNING I APRIL 2016 5

Visit the NEW RWTA website

www.rwta.com.au

Over the past few months, our team have been working hard to deliver a new website with improved design, functionality and navigation. Our goal was to create a must-visit digital destination, so we have made it easier for you to find your way around the website while also being viewable on all portable devices. Along with the launch of our new website we have moved “Cold Running” our quarterly newsletter into digital format as an eMagazine and this is now viewable at www.rwta.com. au/magazine/ . This new feature now means that you can read “Cold Running” on your favourite electronic device. Please take a moment to visit the new website at www.rwta.com.au and let us know what you think.

NEW RWTA Member Portal Along with the launch of the new website we have also launched a Member Portal where you can now register for events and update your personal details. If you are a member of a State Executive Committee or RWTA Sub Committee you can now access previous meeting documentation (including agenda’s and minutes). You can also search Upcoming Events, visit the eLearning section and Member Directory, or view our Online Resources section.

There is literally a world of information on hand for you as an RWTA Member, so please take a moment to visit the new member portal at www.rwta-membership.com.au/ If you have any questions regarding either the New Website or the Member Portal please contact us on - Telephone: (03) 8620 2802. Thank you for your support, and we trust you will enjoy these new member benefits. 6 APRIL 2016 I COLDºRUNNING

2016

Recognising aspiring leaders FRANK under 35... Nominations AWARD NOW OPEN!

VALE

The Frank Vale Award is awarded annually to acknowledge talented young people within the Industry, who have demonstrated to their employers that they have the potential to become future leaders, and make a positive contribution to the development of the Australian Cold Chain Industry. You too could be just like Melissa Hunt ‘2015 Frank Vale Award Winner’

The Frank Vale Award experience was a great personal challenge and ultimately one of the most rewarding experiences of my life. The opportunity to analyse your working career, lessons learnt, what you have done well and look at areas where you can improve is a powerful exercise and has helped me set my future goals both as an individual and for S&D Logistics.”

State Finalists (and their partners) will travel as special guests (paid for by the RWTA) to the 75th RWTA National Conference and Exhibition, to be held at the Sheraton Grand Mirage Resort, Gold Coast, Queensland from Wed 31st August to Fri 2nd September 2016, with the Award Winner being announced at the Conference Gala Dinner. The winner of the 2016 Frank Vale Award will receive a $5,000.00 travel prize to attend the Global Cold Chain Alliance (IARW-WFLO) Convention to be held at The Saint Regis Monarch Beach Resort, Dana Point, California USA in April 2017.

Proudly sponsored by

ASSESSMENT CRITERIA: 1. Nominations will be accepted from any Member of the RWTA (Corporate, Full and Associate); 2. Nominees must be 35 years or under at the time of being nominated; 3. Nominees must have at least three (3) years’ experience in the cold chain industry or associated industries; 4. Nominees should have a broad knowledge of the refrigerated warehouse and/or transport industry and may be drawn from the operational, commercial, administrative, technical, engineering, accounting, sales, handling, service or management sections of the industry; 5. Nominees need to have demonstrated potential in any of the many facets within the industry; 6. Nominees need to have demonstrated dedication to their company, its policies and objectives; and 7. Nominees (who are judged to become their State Finalist) will be interviewed at the National Conference by a panel of RWTA Board Members and will be required to make a five-minute presentation to delegates attending the Conference.

Evaluation of nominations will be carried out by each State Division’s appointed judging panel, who will interview all Nominees at their place of employment, and then forward their nominated State Finalist to the RWTA Board. Nominations close 27th May 2016, and no late applications will be accepted. For further information, contact your Manager. Nomination forms are available for download from the RWTA website: www.rwta.com.au. For more information, Please contact Russell Sturzaker Phone: (03) 8620 2802 rsturzaker@rwta.com.au COLDºRUNNING I APRIL 2016 7

2016 75th RWTA

NATIONAL CONFERENCE AND EXHIBITION Wed 31st August - Fri 2nd September 2016 Sheraton Grand Mirage Resort Gold Coast, Queensland Australia

Experience the Gold Coast’s only 5 star beachfront resort when you attend our 75th RWTA Conference & Expo this year at the Sheraton Grand Mirage Resort. The Gold Coast is the perfect location for delegates and their partners to make a holiday out of their time in Queensland. So make sure you put the dates in your diary to join us here. Details will be released shortly containing information about Speakers, Social Events, Sponsorship Opportunities and Exhibition Packages. Information and Registration will be available through our Conference Website soon... Exhibitors and Sponsors are encouraged to contact the Executive Officer – Russell Sturzaker at rsturzaker@rwta.com.au to discuss your involvement at this stunning conference and exhibition venue. An Affiliate Partner of

8 APRIL 2016 I COLDºRUNNING

For more information or for bookings, Please contact Russell Sturzaker Phone: (03) 8620 2802 rsturzaker@rwta.com.au

[ CONFERENCES ]

RWTA 75th NATIONAL CONFERENCE & EXPO SET FOR QUEENSLAND’S GOLD COAST The 75th RWTA National Conference and Exhibition will be held at the Sheraton Grand Mirage Resort, Gold Coast, Queensland from Wed 31st August to Fri 2nd September 2016. Conference Location Australia’s Gold Coast is a city coming of age. Strategically located on the edge of the Asia-Pacific rim, with access to two international airports, the Gold Coast is perfectly positioned as a destination for business, investment, study, sport, events, tourism and lifestyle. The Gold Coast stretches along 57 kilometres of coastline and is home to over half a million people. Beyond the city’s beautiful beaches are vast, sub-tropical rainforests with breathtaking scenery. Welcoming close to 12 million visitors each year, the Gold Coast is full of attractions and things to do. As Australia’s premier tourist destination, the city offers a vibrant mix of shopping, accommodation, theme parks, restaurants, entertainment and events, along with an abundance of natural attractions. The Gold Coast has developed into a diverse, cosmopolitan, forward-thinking city with a future full of promise. Getting to the Gold Coast Centrally located on the Gold Coast, Gold Coast International Airport is located just 20 kilometres south of Surfers Paradise. A range of carriers fly directly into GCIA: Jetstar, Virgin Australia, Tiger Airways and Air New Zealand. There is a conveniently located information desk at the airport to assist in getting you to your destination. Climate on the Gold Coast Queensland’s Gold Coast has a comfortable sub-tropical climate ideal for outdoor enjoyment all-year round. The Gold Coast averages 245 days of fine and sunny weather each year and has an average rainfall of about 1400mm annually, the majority of which falls in the summer period (December - February). Daytime temperatures on the coast are generally in the mid 20°C range. The Hinterland is slightly cooler

with maximum winter temperatures around 16°C. In winter, clear skies and dry air mean cool nights. Here you will find some information on temperature, rainfall and seasonal activities to help you plan your Gold Coast holiday. September on the Gold Coast has sunny days followed by mild tropical evenings. Conference Venue – Sheraton Grand Mirage Resort, Gold Coast, Queensland Sheraton Grand Mirage Resort is conveniently located towards the northern end of the Gold Coast, a 5-minute drive from Surfers Paradise beach and just minutes away from a vast array of dining and shopping precincts. The hotel is also located 40 minutes north of the Gold Coast Airport and only a 1-hour drive away from Brisbane and both the domestic and international airports. The resort is also conveniently located for all the best attractions for kids in the Gold Coast. Sea World, one of the world’s finest marine parks and one of the most environmentally friendly lagoon habitats in the world is a fiveminute drive away. Dreamworld, famous for having the biggest gravity rollercoaster in the southern hemisphere, is also home to White Water World. Dreamworld and White Water World are located off the Pacific Motorway, approximately a 30-minute drive from the hotel. Also 30 minutes away is Warner Bros. Movie World and Australian Outback Spectacular, which offers a magical experience of film-oriented escapism and Paradise Country featuring Australian wildlife and traditional outback culture. Currumbin Wildlife Sanctuary is just a 35-minute drive away and provides children with a never ending interactive experience with nature’s many creatures. Sheraton Grand Mirage Resort Features As the Gold Coast’s only luxury beachfront resort, we welcome you to

the newly refurbished Sheraton Grand Mirage Resort and Spa. The new look Sheraton includes 295 refurbished rooms and suites, accommodation corridors, lobby, reception desk, guest lifts, Porte Cochere, hotel entry, pool area landscaping, • Sheraton Grand Mirage Resort Gold Coast features a pool bar, a health spa and direct beach access. This luxurious property is a 10-minute drive from Surfers Paradise and a 15-minute drive from Jupiters Casino. • All guest rooms boast views of the garden, lagoon or the ocean. Each has the signature Sweet Sleeper Bed, an iPod dock and flat-screen cable TV. • The property has a lap pool and a gym. You can pamper yourself at Golden Door Spa and Health Club. • Terraces Restaurant features a buffet which includes fresh local seafood, traditional favourites and desserts. • Pearls Bar enjoys views of tropical gardens and Pacific Ocean, and it offers premium beers on tap, high tea and light meals. Conference Details Conference Program Details will be released shortly detailing Speakers, Exhibition Packages, Partner Program, Social Events, and Delegate and Partner Registration will again be available online at www.rwtaconference.com.au So make sure you put these dates in your diary, as the place to be in September 2016 will be the SHERATON GRAND RESORT, GOLD COAST, QUEENSLAND VIEW PROMOTIONAL VIDEO Exhibitors and sponsors are encouraged to contact the Executive Officer - Russell Sturzaker at rsturzaker@rwta.com.au to discuss your involvement at this exciting conference and exhibition. COLDºRUNNING I APRIL 2016 9

[ ARTICLE ]

Revolutionary Energy Retailer Delivers Big Savings to Refrigeration Businesses Electricity is a major operating cost for most refrigeration businesses – commonly perceived as a permanent burden on the bottom line. Short of reducing production, companies assume there is little they can do to reduce their monthly energy spend But thanks to Australian-owned energy retailer, PG Energy, businesses all over Australia are now saving up to 25% on their energy bills. According to CEO, David Evans, PG Energy has devised a unique model that allows businesses to access wholesale market prices. ‘Traditionally, businesses purchase electricity from energy retailers via fixed rate contracts. The contracts usually contain standard peak,

off-peak and shoulder rates. But because these traditional retailers purchase electricity at variable market rates, their customers are financially disadvantaged, particularly when wholesale prices are low,’ Mr Evans said. With the dramatic rise in costly fixed rate agreements, many businesses are now choosing to purchase their energy via the wholesale market. And PG Energy is the retailer that’s making this possible – with its end-to-end solution that includes automated, remotely-controlled load management and notification systems. ‘Our sophisticated technology, specialised communication systems and flexible energy products are providing real returns for our clients. Put simply, we’re able to keeps sites informed of market price events which allows them to shed and

Australian Competition Tribunal Order Regulator to Revisit its Decision on NSW and ACT Distributors’ Revenues On Friday 26 February the Australian Competition Tribunal handed down its decision on regulated distribution revenues for Ausgrid, Endeavour Energy, Essential Energy and ActewAGL, and the gas distributor Jemena Gas Networks (NSW). The decision will affect prices charged to customers for electricity in NSW and ACT over the period to June 2019 and also to customers of Jemena Gas Networks (NSW) to June 2020. Mid last year the Australian Energy Regulator (AER) published its revenue decisions mandating the maximum revenue that each of these businesses could charge to its customers until the end of the decade. These contained one off cuts between 17% and 31% with Ausgrid, the largest NSW distribution business, receiving a 25% cut. 10 APRIL 2016 I COLDºRUNNING

On appeal the Australian Competition Tribunal has ordered the AER to revisit its revenue decision on a number of matters but most significantly for the operating expenditure that it had allowed the businesses to charge through to customers. Operating expenditure is one of the largest costs for distribution businesses, with the electricity distributors requesting a total of $6.82B over the five years from 2015 to 2019 and with the AER originally cutting this by $1.75B or 25%. In making this order the Tribunal said that the AER should have used a broader range of modelling and benchmarking methods as well as including a bottom up assessment of costs in coming to its operating expenditure decision. In what will be seen as a blow to customers, who will likely have to pay more, the AER will now have to look again at its revenue determination for these businesses. The NSW

increase their loads at the right times,’ explained Mr Evans. To learn more about how PG Energy can help your business save, please contact:

PG Energy 1300 08 06 08 info@pgenergy.com.au Or visit pgenergy.com.au/save to download your free guide – How to Save With Wholesale Energy Purchasing – exclusive to RWTA members. Government, however, may see this as a victory as it will help in the sale process currently underway for Ausgrid and Endeavour Energy. Because the Tribunal did not make a revenue decision itself, but asked the Regulator to look at it again, the timing and outcome of the Regulators revised decision is uncertain but will be several months in coming. Customers in the ACT and NSW should note that the prices that they are charged by the distribution businesses will not change until the revised decision is delivered, and then most likely only from commencement of the following financial year. For customers in other states, the decision may affect prices cuts already handed down for Victoria and South Australia although no decision has been made on this yet. Customers in Queensland are likely to retain price reductions already made and for those in Tasmania the Regulator has not yet handed down its revenue decision. The Western Australian distribution business, Western Power, is regulated by the state based Economic Regulation Authority, not by the Australian Energy Regulator. Article courtesy Energy Action.

WHOLESALE ENERGY DIRECT TO YOUR BUSINESS

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But before you commit to anything, stop.

Our revolutionary approach to energy purchasing will allow your business to:

By spending the next 30 seconds reading this advertisement, you’ll discover a way to cut your energy costs more than you ever thought possible.

PG Energy is a specialised, Australian-owned energy retailer that sells energy direct to business at wholesale prices.

P Access the lowest energy costs in the market P Say goodbye to fixed rate contracts once and for all P Achieve complete transparency with your energy spend

‘

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We were spending $20k a month before moving to PG Energy. But we’re now saving $5k a month! As a small business, it’s critical to find savings where we can – which is why moving to PG Energy was such a smart decision. Any business that’s looking to improve their bottom line should do the same.

’

Andrew Vincent, Vincent Transport Services

How do we do it? PG Energy works exclusively with large electricity users who are serious about reducing their energy spend. Our innovative model is underpinned by our: P Unrivalled expertise of the wholesale energy market P Sophisticated technology and management tools P Specialised client communication systems P Range of flexible solutions to suit varying business needs

Take This Important First Step For a free site analysis or to simply learn more about PG Energy and wholesale energy purchasing, call us today on:

1300 08 06 08 Or visit www.pgenergy.com.au/save to download your free guide – How to Save With Wholesale Energy Purchasing – exclusive to RWTA readers.

PG Energy Level 1, 24-30 Camberwell Rd COLDºRUNNING I APRIL 2016 113123 HAWTHORN EAST VIC

[ ARTICLE ] 1

Frozen Food Consumer Segmentation Study Consumer Insights

Background & Objectives

Background AFFI completed a consumer segmentation study in 2012 that identified seven different frozen food segments. In 2015, the organization wanted to understand if these segments were still valid and how the composition or behavior profile of the segments may have changed.

Objectives The goals for the 2015 consumer segmentation study were to: • Understand if AFFI’s 2012 segmentation was still valid and, if so, how the segments shifted during the last three years; • Evaluate favorability and purchase preferences associated with the frozen food category; • Explore consumer concerns and behaviors; and • Track past challenges and issues in the category to understand if they were still relevant.

Quantitative Methodology WHO

HOW MANY

WHEN

WHERE

U.S. Adult Grocery Shoppers

n=3,000 Margin of Error +/ 1.8%

Data Collection Occurred September 2015

Online Survey

Hispanic Oversample: n=500 Margin of Error +/ 4.4% Millennial Oversample N=500 Margin of Error +/ 4.3%

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[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Intelligent Engagement

Key Findings- Favorability and Purchasing • Favorability toward the frozen food category has improved greatly since 2012. • While consumers still believe frozen foods are too processed and contain artificial ingredients, they agree that frozen foods can be part of a balanced diet. All frozen subcategories saw an increase in overall favorability in 2015. • Shoppers’ views toward the freshness of frozen foods have also improved significantly since 2012. • Consumers still don’t rate frozen foods very highly on freshness, but their perspectives have increased sharply over 2012. This implies that brand and industry efforts have been successful in shifting public perceptions. • Consumers are cooking more from scratch in 2015 and using more frozen foods (i.e. vegetables) as ingredients in their meals. • The frozen vegetable subcategory is the most purchased across all segments and the only one where consumers claim to be purchasing more compared to last year. • Consumers are grocery shopping more often than they did in 2012, and visiting the frozen food section more frequently as well. • Today, 44% of consumers say they grocery shop at least once per week compared to 38% in 2012. The frequency of frozen food purchasing has also increased during this time- 25% of consumers now say they shop for frozen foods at least once per week, up 11% from 2012.

Intelligent Engagement

COLDºRUNNING I APRIL 2016 13

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Favorability toward all frozen subcategories has improved since 2012 •

Frozen appetizers and snacks saw the largest increase, up 1.9 from a mean score of 4.6 in 2012 to 6.5 in 2015. Δ Favorability Toward Frozen Foods Frozen vegetables Frozen meat & seafood

36%

59% 43%

49%

from 2012

7.6

+0.7

7.0

+1.0 +1.3

Frozen pizza

12%

42%

46%

6.8

Frozen fruit

12%

42%

46%

6.8

N/A

Frozen cooked chicken

13%

6.7

+1.7

44%

43%

Frozen appetizers & snacks

15%

45%

40%

6.5

+1.9

Frozen breakfast

15%

46%

40%

6.5

+1.7

Frozen single-serve meals

15%

45%

40%

6.5

+1.6

45%

39%

6.4

+1.7

48%

38%

6.4

+1.6 +1.7 +1.3

Frozen multi-serve trays Frozen multi-serve bags

16% 14%

Frozen pies & cakes

16%

48%

36%

6.3

Frozen breads & biscuits

15%

49%

36%

6.3

Unfavorable (1-3) 6

Mean Score

Neutral (4-7)

Favorable (8-10)

Q20. On a scale of 1 to 10, where 1 is “very unfavorable” and 10 is “very favorable,” how would you characterize your feelings towards each of the following? (n=3000)

Intelligent Engagement

Consumers are grocery shopping more often now than in 2012 • 44% shop at least a few times per week, compared to 38% in 2012. Grocery Shopping Frequency

48% 36%

46%

37%

15% 7%

11%

2% Every day

A few times per week

2012 7

Once a week

2015

Q17. How often do you or members of your household typically shop for groceries? (n=3000)

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Less than once a week

Intelligent Engagement

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

An increase in general grocery shopping has translated into an increase in how often consumers buy frozen foods • 64% purchase items from the frozen section at least once per week, up 18% from 2012. • Frozen vegetables and frozen meat and seafood are the most frequently purchased subcategories. Top Subcategories Purchased 2012 2015

Frozen Food Purchase Frequency 64%

35%

39% 33% 23%

21%

12%

10% 1%

Every day

A few times per week

Once per week

2012 8

A few times per month

Once per month

Less than once per month

1% 0% Never

2015

Frozen vegetables

21%

Frozen meat & seafood

Frozen single-serve meals

12%

Frozen pizza

At least once per week

51%

44%

40%

45%

35%

40%

37%

38%

35%

33%

37%

A few times/ once per month

Q18/49/89/99/148. How often do you purchase items from the frozen food section when grocery shopping? (n=3000)

Intelligent Engagement

Though consumers buy frozen foods more often, sales volume continues to decline • Data from Nielsen shows that unit sales declined by 3% from across the frozen category from June 2014 to June 2015. • This implies that shoppers are purchasing frozen products more frequently, but buying fewer frozen items during each shopping trip. Source: Strom, Stephanie (2015, August 31). TV Dinners in a Netflix World. The New York Times. Retrieved from http://www.nytimes.com

Intelligent Engagement

COLDºRUNNING I APRIL 2016 15

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Consumers are cooking meals from scratch more often and are using both fresh and frozen ingredients to do so More compared to last year Cooking meals from scratch using only fresh ingredients (36%) (44%) (+8%)

Cooking meals from scratch, using some packaged or frozen ingredients (31%) (39%) (+8%)

Eating out at restaurants (16%) (23%) (+7%)

Purchasing meals prepared in-store (11%) (23%) (+12%)

Purchasing frozen prepared meals (11%) (21%) (+10%)

Ordering take-out, drive-through or delivery (12%) (20%) (+8%)

Purchasing packaged refrigerated meals (9%) (20%) (+11%)

2012 10

Q15. Thinking about the different ways people can prepare meals, would you say you’re doing each of the items below more often now than last year, less often now than last year, or about the same as last year? (n=3000)

2015

Intelligent Engagement

What It Means • The frozen category may not currently offer the right products to meet consumers’ needs. • Consumers interact with the frozen section more often now than in 2012, and favorability toward frozen foods has increased. However, sales across the category remain stagnant. • Consumers like the idea of cooking from “scratch,” and are using more frozen ingredients more often in their meals. However, they are staying away from many frozen prepared foods. • Shoppers are still concerned about artificial ingredients and processing in many prepared frozen foods.

• The frozen category might benefit by offering: • More frozen ingredients, like vegetables and meat, that can be used when cooking from scratch. • Simplified ingredient lists or all natural ingredients in prepared meals to alleviate health concerns. 11

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Intelligent Engagement

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Intelligent Engagement

Consumer Segmentation Profiles • In 2012, AFFI identified the following seven consumer segments: Social Activist Anti-Frozen (12% of general population in 2012)

Social Activist Anti-Frozen consumers are a conscientious group, who put a lot of thought into the food purchases they make. This group takes the time to read nutrition labels and is likely to consider not only healthfulness of their choices, but also the broader impact of the purchases they make. They are a typically female, under 35 and are the least likely to purchase frozen foods.

Home-Chef Foodies (13% of general population in 2012)

Home-Chef Foodies are an engaged, knowledgeable and influential audience who are often looked to for their opinions on food. These consumers enjoy preparing meals from scratch, preferring to cook at home rather than eat out at a restaurant. They are age, gender and income diverse.

Young Followers (15% of general population in 2012)

This is a trend-following group. They are food-engaged and consider themselves to be somewhat knowledgeable, but are not the influencers driving the trends. The segment skews younger, with most individuals under 35. 13

Intelligent Engagement

COLDºRUNNING I APRIL 2016 17

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Consumer Segmentation Profiles Stressed Out Worriers (15% of general population in 2012)

Families with ‘Values’ (15% of general population in 2012)

On-the-Go Eaters (14% of general population in 2012)

Wallet-Driven (15% of general population in 2012)

Stressed Out Worrier consumers are a cautious group, who despite being concerned with the content of packaged foods are still making these purchases. This group understands the value of frozen foods, but nonetheless worries about the processing involved. They are more likely to have children in the household who influence purchase decisions.

On-the-Go Eaters are convenience-driven food consumers. This group is likely to purchase packaged foods rather than cooking from scratch and are generally less engaged with food than other consumers. They are typically aged 45+, middle income and don’t have children in the household. 14

Families with ‘Values’ is a family-focused group seeking value at the grocery store. These budgetconscious consumers are focused on making basic food purchases that will satisfy their families at the dinner table. This group skews younger, with lower income and education levels.

Wallet-Driven consumers are thrifty, putting little value in other considerations such as convenience, nutrition or even taste. This consumer is less engaged with food purchasing than other segments, and is generally older with a limited or lower income.

Intelligent Engagement

Key Findings- 2015 Segmentation • The 2015 consumer segmentation remains consistent from the 2012 study. However, there are notable differences in the composition of some segments.

• Stressed Out Worriers is now the largest segment among Hispanics. As a result, this segment has seen tremendous improvements in its perceptions of frozen foods, as well as its frequency in purchasing frozen items. • “Young Followers” is now a segment that spans all age categories. Over one-third of the segment now consists of Sandwich and Baby Boomer generations. As a result, the segment has been renamed “Followers.”

• There are clear differences in the perspectives and behaviors of younger vs. older Millennials.

• Older Millennials (25 and over) are much more favorable toward frozen foods than their younger counterparts, and much more likely to purchase frozen items. • As a result, Younger Millennials (<25) are more likely to be Social Activist Anti-Frozen consumers, while Older Millennials (25 and over) are much more likely to be Stressed Out Worriers.

18 APRIL 2016 I COLDºRUNNING

Intelligent Engagement

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Consumer Segmentation Changes • Stressed Out Worriers is now the largest consumer segment overall, followed by On-the-Go Eaters. Social Activist Anti-Frozen (12% of general population in 2012 15% in 2015) Home-Chef Foodies (13% of general population in 2012  12% in 2015) Followers (15% of general population in 2012  13% in 2015) Stressed Out Worriers (15% of general population in 2012  19% in 2015) On-the-Go Eaters (14% of general population in 2012  18% in 2015) Families with ‘Values’ (15% of general population in 2012  13% in 2015) Wallet-Driven (15% of general population in 2012  10% in 2015) 16

Intelligent Engagement

Frozen food favorability increased across all segments from 2012, but mostly among Stressed Out Worriers, Onthe-Go Eaters and Home-Chef Foodies Frozen Food Favorability

(Shown: Average subcategory mean score out of 10)

7.9 6.9 5.5

6.9 5.9

5.0

5.1

5.7

6.6 4.8

4.2

Social Activist Anti-Frozen

Home-Chef Foodies

Followers

Stressed Out Worriers

2012

6.5

5.8

On-the-Go Eaters

Families with “Values”

Wallet-Driven

2015

Q20. On a scale from 1 to 10, where 1 is ‘very unfavorable’ and 10 is ‘very favorable’, how would you characterize your feelings towards each of the following? (n=4016)

Intelligent Engagement

COLDºRUNNING I APRIL 2016 19

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Stressed Out Worriers purchase frozen foods more frequently than any other segment

Frozen Food Purchase Frequency (Shown: % purchase at least once per week)

83% 68% 54%

60% 47%

41%

65%

56%

52%

57%

56% 39%

28%

Social Activist Anti-Frozen

Home-Chef Foodies

Followers

Stressed Out Worriers

2012 18

On-the-Go Eaters

Families with “Values”

Wallet-Driven

2015

Q18. How often do you purchase items from the frozen food section when grocery shopping? (n=4016)

Intelligent Engagement

Hispanic customers have shifted dramatically into the “Stressed Out Worriers” segment and out of other segmentations Hispanic Consumers Segmentation Distribution

2012

2015 30%

18% 18% 10% 11%

Social Activist Anti-Frozen

18%

17%

Home-Chef Foodies

12%

10%

Followers

Stressed Out Worriers

Q29/33/34. How much do you agree or disagree with the statements below? (n=507) Q31. Please indicate whether each of the following statements describes you. (n=507)

20 APRIL 2016 I COLDºRUNNING

12%

On-the-Go Eaters

15% 11%

Families with “Values”

Wallet-Driven

Intelligent Engagement

[ ARTICLE ] Frozen Food Consumer Segmentation Study

Consumer Insights

Younger Millennials (<25) are more likely to be Social Activists, while older Millennials (25 and over) are more likely to be Stressed Out Worriers Millennial Consumers Segmentation Distribution 33% 28%

24%

22% 18%

16%16% 11%10%

Social Activist Anti-Frozen

12%12%

13%

15%16%14%16% 11%

10%11%10% 9%

Home-Chef Foodies Total

30%

28%

Followers Younger Millennials

Stressed Out Worriers

On-the-Go Eaters

Older Millennials

Families with “Values”

7% 6%

Wallet-Driven

Millennial Moms

Q29/33/34. How much do you agree or disagree with the statements below? (n=1756/591/1165/1049) Q31. Please indicate whether each of the following statements describes you. (n=1756/591/1165/1049)

Intelligent Engagement

What It Means •

Manufacturers can no longer treat all Millennials equally. Messaging and communication strategies should be tailored specifically toward older and younger members of this group.

• Millennials are growing up and there are clear divisions between those who are under vs. over 25 years old.

Younger Millennials need to be reassured that their frozen choices are healthy for themselves and the environment, while Older Millennials want to know that frozen foods can be part of a balanced diet that includes both healthy choices and indulgences.

•

Manufacturers who want to reach Hispanics should pay close attention to the Stressed Out Worrier segment. • Thirty percent of Hispanics fall into the Stressed Out Worrier category, demonstrating that Hispanics are

more torn between health and convenience than ever before. Marketers should consider this segment and its needs first when considering messaging and communications toward Hispanics.

Intelligent Engagement

COLDºRUNNING I APRIL 2016 21

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An Introduction to

www.rayhodge.com.au

Improving Critical Business Efficiencies to Dramatically Increase Key Results I have recently become a member of the RWTA and wanted to introduce myself and my work to you. I speak, provide workshops and training, and consult to businesses and organisations, a notable event being the Department of the Australian Prime Minister and Cabinet. I have a senior leadership and finance background which proves invaluable in my current work. As a summary, I work with Business Owners, Association Executives, CEOs and their senior leadership teams to: • Significantly increase managerial and workforce job satisfaction, productivity and engagement levels • Streamline systems and effectively create and implement strategy • Find purpose and enjoyment in their work My clients often experience dramatic rises in productivity and profitability as a result of our work together. As one of my recent clients said “Ray’s focus on ensuring that the internal efficiencies (workflows and our staff) along with the external focus of getting our company onto the front edge of marketing and growth has been a great approach.” I am looking forward to being part of the RWTA for many years to come and look forward to meeting you. Feel free to call me on +61 403 341 105 or email ray@rayhodge.com 24 APRIL 2016 I COLDºRUNNING

[ ARTICLE ]

Achieving Together Me the Leader

My Team

Authentic People make Authentic Leaders

A Journey Into Authenticity for Leaders Introduction

Authentic Leadership is about authentic people first and foremost. The more a leader understands their authentic self, the real me, the greater the authenticity in their leadership role. This is the foundational premise of this article. We will cover the following two areas: 1. The Authentic Person 2. The Authentic Leader

1. The Story of Three Leaders Bob

Bob was the owner of a waste management company and was an incredibly passionate individual. His leadership style reflected some of the following traits: • Assertive • Energetic • Fast paced • Aggressive at times • Direct • Confrontational • Non trusting • Maintained personal control • Initiator His unique talent, his gift, was that of developing thriving businesses from the ground up. He was a developer and detested anything to do with the routine of daily management or maintenance.

Bob was solely focused on continual growth and expansion. Consolidation wasn’t a phrase he would entertain. While he had the sense to bring in good people, many of them were developers like himself which simply continued to fuel the expansive sales fire that was already raging. Given the leadership traits that I mentioned above, the management team never had sufficient time to implement the strategies and plans to bring order due to his incessant growth pursuits. There would be a decision made by Bob and the team, only to be overturned soon after. He called incessantly, unable to fully trust his people. They in turn felt undervalued, not listened to, continually directionless (or if they did have direction it was very short lived) and never really felt like they were contributing anything of substance. We could say that Bob was leading authentically as to who he was as a person. The traits I mentioned above was Bob through and through – at work and outside of work. His actions were consistent with this true self yet, his unchecked authentic style did more harm than good. Here arises one of the key questions with the term Authentic Leadership: How do I lead in a way that is authentically me yet also effectively lead my people toward the achievement of the companies goals, vision and mission?

Ian

The second leader I would like to mention is the former Chief Executive of Orica. While I don’t know Ian personally there was some excellent media coverage on his departure from the explosives giant. From reviewing the articles it would appear that Ian shared Bob’s top six traits - those being assertiveness, energetic, fast paced, aggressive at times, direct and confrontational. What is interesting about his situation was that he was in the process of style adaptation. That is, he was seeking to modify (what I read to be) his authentic self with those he led. He was seeking to lead more authentically from understanding others. Full credit to Ian for his very honest admissions and that I think every leader would do well to emulate. One of the articles can be found at http://www.smh.com.au/business/ oricas-ian-smith-confesses-toaggressive-behaviour-201503181m20l9.html

Tony

The last leader I would like to highlight is a man called Tony who was the managing director of a company in the industrial sector. Tony requested my Continued over page COLDºRUNNING I APRIL 2016 25

[ ARTICLE ] Continued from over page

assistance to increase the productivity of his management team (who were already performing highly) and to assist with the preparation and positioning of them for his future three year plan. I subsequently met with each manager to begin the consultative process and all of them expressed a similar perspective on Tony’s leadership. It could be summarised as follows: “I know that Tony values my contribution to the company. I feel valued by him and know that he will do anything to support me in my role but…I wouldn’t want to cross him. “ Tony exemplified some of the traits that both Bob and Ian shared yet had the ability to exercise a style of leadership I term as tough love. He could be tough when required - thus the “I wouldn’t want to cross him” as per above, but his people felt the love. A great balance. What was also interesting about Tony’s leadership was that he had mastered the ability to be authentically himself while leading his people in a way to allow them to be authentically themselves. You could say that he honoured their authentic selves, freeing them to work in an environment of trust and autonomy. So in summary: •

Bob was leading purely from his authentic self without thought to the effect it was having on his people or the company’s results as a whole.

• Ian Smith listened to others and was adapting his style. He was in transition. •

Tony’s leadership was out of his true self yet he was able to adapt his style in the leadership of each of his management team.

One Aspect of Authentic Leadership The Authentic Leader is one who has a significant understanding of who they are at the core of their being. They are self aware, understanding their strengths and limitations. They are also other aware in that they understand the people they lead. Through this self awareness and other awareness they are then positioned to adapt their leadership style to create ongoing results through high performing teams.

2. The Authentic Person a. Definition of Authentic

The word authentic simply means that of undisputed origin, not a copy, genuine, real, not false. When we bring this into the subject of leadership there are two 26 APRIL 2016 I COLDºRUNNING

facets of this that I deem as necessary:

i) Building Self Awareness

• Understanding and honouring my own authentic self

Growing in self awareness doesn’t happen on its own accord. Women by nature tend to be more self aware than their male counterparts yet for all of us, taking time on a regular basis to understand ourselves is essential for our ongoing leadership roles. Not only is this important in leadership but self awareness and the principles discussed here will stand us in good stead for the variety of relationships and interactions we have on a daily basis.

• Understanding and the honouring of my teams authentic selves. b. The Authentic Me A Jewish writer once declared “I am fearfully and wonderfully made.” And what a great summary. We are in fact a total sum of parts, not just the tangible aspect of our make - up but also the intangible. Here are some of the elements that make up the wonderful you, the wonderful me. • Purpose • Values • Skills • Gifts and Talents • Wisdom • History – defining life moments; insights; memories etc. • History and Present Disparity • Core Behaviours • Personality Traits • Self Image • Beliefs • Major Goals • Motivations and Needs • Interests and Passions • Weaknesses • Addictions and Obsessions c. Self Awareness Daniel Goleman, in his book Emotional Intelligence mentions a number of pillars, two of which are Self Awareness and Self Regulation. Understanding our authentic selves is essentially self awareness. Adaptive leadership is in many ways self regulation. Out of the awareness of who we are, we are better equipped to be other aware and thus regulate our leadership style accordingly. True to ourselves, true to our people, true to the organisations goals and vision. My observation in working with people, whether that be from the workers on the shop floor to the top echelons of management, is that the awareness of oneself and the corresponding management of one’s emotions and adaptive leadership styles tend to be very secondary (or absent in many cases). I find most people purely operate out of their genuine selves automatically, rather than stepping back, understanding others, assessing the best approach and then leading accordingly.

Here are some ways you can increase your own self awareness. • Listen to your body. What is it telling you? e.g. Fatigue, muscle tension; playful, fun •

Listen to what others (especially those closest to you) are saying about you. Is the feedback consistent?

•

Practice driving, walking or sitting in silence. Don’t fill your world with noise and the ubiquitous mobile technology. What concerns, thoughts and feelings surface when you are quiet?

• Read information on basic psychology • What pushes your buttons? People, comments, situations. • What are your obsessions, addictions, weak areas? • What brings you joy? • What creates angst? ii) Journaling One of the disciplines I have maintained for the past thirty years is that of journaling. Most often it is daily but rarely longer than a week passes without writing. Not only do I have a thirty year documented history (that I am sure my kids will find a fascinating and enlightening read when I pass from this earth), but this one discipline has created a self awareness like nothing else could have. Here are some of the areas I document: • Yesterday. The events, people, meetings, travel , encounters experienced •

Today. What I am thinking and feeling in the present. I try to connect with my dominant thoughts and moods.

•

Reframe. I try to make sense of things, reframing as necessary to gain a more correct perspective, especially if my mood and thoughts

[ ARTICLE ]

are not particularly useful to the coming days work.

•

My goals, dreams and plans. I heard recently that only one in four people write down their goals and only one in a hundred review these goals. By doing this exercise it sends you right to the top.

approach to the self discovery process. An online version can be found at http://www.rayhodge.com.au/wpcontent/uploads/2015/08/AuthenticityCongruency-Table.docx Here is an explanation of the tables components.

iii) The Authenticity – Congruency Table

Life areas. These are the areas that make up the self.

Below you will find the Authenticity – Congruency Table that I created to facilitate a more analysis driven

Who I am. This column seeks to identify who I am at the core of my being - my authentic self.

What I do. Here we seek to identify the behaviours that are incongruent to our authentic self. Stretch areas. What are the areas within my career, relational or leadership spheres that are creating a stretch beyond the zone of my authentic self? I suggest you keep this table handy over a period of a few weeks and as things come to light to complete it as you go. Continued over page

Authenticity - Congruency Table Life Areas Who I am What I do Stretch Areas: Authentic Self Inauthentic Behaviours Relational, Career Leadership spheres

Purpose What do you sense is your purpose for being on planet earth?

Values Example: What do you value? What does Peacefulness your time, thoughts, energy and money go towards? e.g. freedom, timeliness, power, education, personal development, health etc.

Go out to noisy bars every weekend and fill all space with people and activities

Managing the current conflict with Peter

Skills and Strengths What are the skills you have learned through life?

Gifts and Talents What do you do that seems to be easy, you enjoy and experience very high results in?

Wisdom In what areas do you have experience, knowledge, and good judgement?

History – defining moments What are the defining moments in your history? What are the key contributors that have led you to this point? Key people you have met that influenced your life.

History and The Present What have you enjoyed doing that you no longer do or do little of?

Core Behaviours Do we tend to be fast or moderately paced? People oriented or task oriented; detailed or big picture etc?

Personality Traits What are the characteristics and qualities that make you you? e.g. introverted, playful etc.

Self Image Healthy and high; unhealthy and low? Beliefs e.g. Rich people are greedy

COLDºRUNNING I APRIL 2016 27

[ ARTICLE ] Continued from over page

Major Goals e.g. Move to Italy; Build a mansion: put my children through private school?

Motivations and Needs Largely linked to your what you value. What motivates you? What needs drive you?

Interests and Passions e.g. Soccer; dancing; wine etc. Weaknesses What are the weaker areas in your life? These can reflect career, leadership roles, relational etc. Addictions

Obsessions Where do you tend to be obsessive in your life that can have a damaging effect? E.g. worrying intensely; focus on one thing to the exclusion of all else.

d. Benefits of Self Awareness The benefits of increased self awareness include: • We are more at home in ourselves. There is an ease about our life. •

When we are tuned into ourselves we can regulate our actions and behaviours more effectively and quickly. We live congruently without ongoing internal conflict .

• Being self aware makes us better at being other aware.

In the case of Inauthenticity, the actions that we live out are at odds with the authentic self. This kind of living creates internal conflict within the person. We might experience high anxiety, stress and tension, torment, lack of happiness etc. right through to a self loathing/ hatred. This can be highly damaging at one end of the spectrum and create low productivity and motivation on the other. The authentic person on the other hand who has closely aligned actions experiences an inner congruency with a sense of balance and internal ease.

3. Honouring the authentic selves of others 4. Linking Productivity to Values One of the challenges faced when working with any organisation is the stretch. What is the distance between who and where I am at personally to what is demanded of me in order to achieve the synchronicity of alignment. It is worthwhile to consider what I call the stretch factor.

• We are less likely to burn ourselves out. • In becoming more personable we become more approachable. •

We gain a sense of understanding how our histories have contributed to where we are today; to the person we’ve become and the person we want to be.

•

Awareness of our obsessions and addictions enables us to create strategies to either avoid them (addictions) or manage them (obsessions).

• Self aware leaders are better leaders. e. The Results of Authentic and Inauthentic Actions The graphic below demonstrates action alignment to the authentic self. 28 APRIL 2016 I COLDºRUNNING

The question here is when I understand myself how do I lead in a way that is authentically me, yet meets the needs of my people and the companies vision and goals? Thoughts on Maintaining Authencity In The Stretch

3. The Authentic Leader

Authentic leadership is first and foremost about the leader themselves. It is not so much about what I must do but more focused on who I am. Here I would like to look at: 1. Career and Role alignment 2. Values and Vision alignment

•

Being self aware is the best start. When you are self aware you can more rationally deal with one off situations.

• Can I make the stretch? Can I adapt in a way that meets the requirements yet maintain action alignment. • How can you link the requirements to who you are? What are the benefits to you?

[ ARTICLE ] •

If it’s a stretch with people, find a common value in them that connects you with them and appeal to those highest values. Link improvement to their highest values helping them see the benefit in it for themselves.

a. Career and Role Alignment At one stage in my career I accepted the role as General Manager for a company in the construction/ tourism industry. While I was able to perform the required tasks I found that the longer I maintained the role the increasingly unhappy I became. I would clock in at 8am and spend my days on reporting, financial management and dealing with the day to day issues. One of the staff members would stop by and reference me light-heartedly as the boring one. Meanwhile, in the office next to me was the business owner. He was constantly on the move building the business, negotiating the next contract and flitting around the country. I thought “I want his job.” As time progressed I realised I had to make some changes. I chose to leave and align my role and career with who I was at the core. Below is a pictorial representation.

b. Values and Vision Alignment I know someone personally who is a talented graphic designer yet he won’t work for companies who are misaligned to his core values. One of these is his disagreement of gambling. He refuses to work on such projects that promote this service.

c. Honouring The Authentic Selves of Others Observing business owners and management across the country has caused me to come to the conclusion that most of us are so absorbed in the fulfilment of our actual roles, responsibilities and meeting performance goals that those we lead tend to come second place. Instead of viewing company growth as a team effort, much of the effort is individualistic. A classic example is how difficult it is for leaders to maintain regular team meetings. If you don’t value ‘team’ then staff meetings go by the wayside. The companies that do place a high value on their people are more likely to meet consistently and socialise together on a regular basis. The other observation is the perspective that we as people tend to see different equals wrong as opposed to different equals different. We tend to like people who are similar to us and discount the rest, leaving them to get on with their work with decreased support. If we as leaders could see that different equals different and thus honour those differences within the people we lead, engagement levels would increase along with the resulting productivity. At the bottom of the page is a classic scenario we find in the workplace. You will notice the strong differences between the two people above. I have seen the case time and time again where someone like Gary will judge others like Peter for being slack in their work despite the fact that Peter may demonstrate high productivity. We tend to judge the surface of things as opposed to looking at actual results. Tim Ferris in his book The 4-Hour Work Week speaks about his first job at an ice cream parlour where he was hired for eight hours a day but completed

the job in one hour. He worked smart not hard. After three days he was fired with a parting comment from the boss saying that perhaps in the future he would understand the importance of hard work. This is the classic difference where one judges the other based on their own standards as opposed to seeing that different equals different and honouring the fact that the ‘different’ person may actually have some qualities that are worthwhile. The other issue here that companies would do well to emulate is the focus on outputs not inputs. Does it really matter if Peter is meeting or exceeding his performance criteria within the work day rather than staying till 7pm like Gary does every day? Honouring the differences that each of us have, valuing those differences and allowing employees to have a sense of freedom within an environment of trust, autonomy and accountability is a powerful combination for high performance if managers are smart. d. Linking Productivity to Values Some time back I consulted to an industrial firm. Part of the improvement initiative was increasing the sales performance of the account manager. His current performance was sub-par. He was always under budget, showed up and went through the motions, meandering his way through his days. I spent some time with him to understand who he was and in particular, what his highest values were. This man would do anything for anyone, was a very giving person and lived solely for his family. A couple of his goals were that he wanted to provide the best schooling for his children and to take his whole family to Disneyland at the end of that year. Once I understood these higher values, I then showed him the data on his current (subpar) performance and the bonuses that could be reaped if he improved his sales. What was I doing? I was linking his

Our work must align to our person. Not just the role but an alignment of what the organisation stands for and promotes against our authentic selves. Highly engaged workers are those who are psychologically committed to the companies goals and vision. They invest discretionary effort and give their utmost deriving high satisfaction from their work. When our true selves and our belief in the organisation is aligned, high engagement is much more likely along with higher productivity and greater satisfaction. Our work actions are in alignment.

Continued over page COLDºRUNNING I APRIL 2016 29

[ ARTICLE ] Continued from over page

daily actions, his work performance to his highest values – his family. He got it. He then understood that the more he produced, the more he would be paid and the better provider he would be for his family. His performance increased significantly. Understand what a person values, link their responsibilities to those values demonstrating how the person will be better off and you have a high chance of seeing significant shifts within both yourself and your team. This is part of the process of honouring another’s authentic self and adapting our style accordingly. I remember some time back I was working on getting my fitness back but it was a hard slog. My highest priorities at the time were financial and career with health somewhere near the bottom. Given that we are more likely to be motivated by the values at the top of the ladder and less motivated by those toward the bottom I had to find a way of linking my health (lowest) to career and finance (my highest) in order to increase my fitness. As I exercised I kept asking myself “How does my being healthy benefit my business and finances?” Linking any change required to our highest values assists in providing the motivation required for that change. Whether it relates to work performance, relationships, addictions and the like, establishing this link provides increased momentum and the intrinsic motivation to both make the changes and to see permanent transformation.

This graphic demonstrates the direct link between motivation and values. The more we value something the more likely we are to be motivated toward it.

4. Summary

My observations from working with leaders for over twenty five years are that authentic leaders are those who live true to themselves yet adapt to the authenticity of the team member – to serve and lead them in a way that is most appropriate to that person. In order for them to do this they have an understanding of those they lead. It is about self awareness and other awareness. It is about getting the best results for the organisation by raising the bar high, keeping people accountable and working WITH them for the achievement of such. I wish you all the best in your business and in your own personal journey into authenticity - in the devleoping understanding of yourself and others in order that you may be an exceptional leader in your field.

Ray Hodge ‘Improving critical business efficiencies to dramatically increase key results’ Website: rayhodge.com.au Direct Email: ray@rayhodge.com.au Phone: +61 403 341105 About Ray Hodge Ray Hodge speaks and consults to businesses and organizations, a notable event being the Department of the Australian Prime Minister and Cabinet. His emphasis is on improving critical efficiencies to dramatically increase key results. He has coached and provided consulting services to leaders and teams for over 25 years. Please don’t hesitate to get in touch with Ray if he can be of service.

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[ ARTICLE ]

Vaughans signs $200m Rail Hub Projects Vaughan Constructions Pty Ltd has been appointed to master-plan and develop two regional Rail Hubs and Business Parks for joint venture partners Colin Rees Group Pty Ltd and Am-berly Management Pty Ltd. Ettamogah Rail Hub,15kms north of Albury on the Hume Hwy, and Widgelli Rail Hub and Business Park,10kms South East of Griffith, NSW are strategically located to support over 500kms of rail branch lines throughout the Riverina. Ettamogah Rail Hub, owned and operated by rail experts, Colin

Rees Group since 2009, will yield over 45,000m2 of warehouse space for lease. Cameron Jackson, Chief Operating Officer for the Colin Rees Group said, “We haven’t pushed the boat out too far to date. We’ve con-centrated on the rail operations but the time is right now, with the right partners, to offer more to our customers. The Prelease interest has been encouraging with multiple enquiries on the hub already showing us that the demand is there in regional areas.” Mr Jackson said the Group intends to retain the investments on the Ettamogah site. It is believed that rents start at approx. $65/m2.

“Planning has commenced and we’re looking to break dirt in next 3 to 4 months.” The Morsheads, a fourth generation Griffith family with broad agricultural interests, joined forces through their Amberley Group with the Colin Rees Group. Widgelli Rail Hub and Business Park is situated on a 68ha site owned by the Morshead family. The first 30ha stage of development at Widgelli will include the design and construction of a new rail hub, rail sidings and over 100,000m2 of warehouse space, hardstands and road networks; a construc-tion value in excess of $80,000,000.

COLDºRUNNING I APRIL 2016 31

[ ARTICLE ]

NSW Members - Enhance your competitiveness and productivity through energy efficiency audits Energy efficiency not only delivers cost savings – it can also help improve your profit margins by unlocking greater productivity and driving competitive advantage. RWTA has entered into an agreement with the NSW Office of Environment and Heritage (OEH) that aims to assist NSW members to identify, implement and verify the big energy savings opportunities on their site. These energy audits typically cost between $10,000 and $20,000 but is capped at $5,000 for RWTA members. Members interested in an audit will be connected with an OEH-approved energy specialist experienced in working with our sector. In addition to this, OEH has a support package for energy efficiency that includes: • Up to $10,000 for technical expertise (such as engineering design) to support implementation of your project • Up to $15,000 funding assistance for measurement and verification services to ensure that your project is delivering you the expected savings • Advice to access finance for your project including the NSW Energy Savings Scheme • Subsidised energy efficiency training courses to upskill your personnel More than 18,000 businesses have been assisted by OEH’s Energy Efficient Business team, saving them more than $368 million in power over ten years. Businesses also report improved productivity, more engaged staff, and reduced equipment maintenance through these projects. For more information, visit http://www.environment. nsw.gov.au/business/energy-saver.htm or to take action, contact OEH by emailing energy.saver@environment. nsw.gov.au or calling 1300 361 967 (ask for the Energy Efficient Business team). (Please remember to mention that you are an RWTA member to take advantage of the special energy audit offer).

32 APRIL 2016 I COLDºRUNNING

[ ARTICLE ]

Environmental Scheme costs to change during 2016 The Australian Energy Market has been going through significant changes over the past 12 months with many of those changes to impact your environmental charges, both electricity and gas, during this next year. The expansion of the NSW Government Energy Savings Scheme and the Victorian Energy Efficiency Target, (also known as the Energy Saver Incentive), as well as the agreement on a revised Renewable Energy Target of 33,000 gigawatt hours by 2020 will all have an impact on environmental scheme costs over the next few years.

The setting of about 23.5 per cent of Australia’s electricity from renewable sources by 2020 in particular has sparked a rise in the prices of renewable energy certificates. The Energy Savings Scheme targets were changed with effect from 1 January 2016 and the scheme was expanded to include gas. The Victorian Energy Efficiency Target and Retailer Energy Efficiency Scheme are the other two schemes that involve gas. Electricity retailers (and in some cases gas retailers) incur costs from state and Federal environmental schemes. These costs are passed on to their electricity and gas clients and may be shown as separate items on their invoices.

Typically the costs are based on two factors: negotiable certificate prices and regulated scheme percentages. The former may be specified in your electricity or gas contract. The latter are set by the scheme regulator and with two exceptions will change every year according to a set timetable. These changes to the scheme percentages may change the costs you see on your electricity and gas invoices. Retailers tend to update their environmental scheme charges in the next billing cycle after the scheme percentages are announced. In addition they may reconcile the previous invoice charges if they were based on estimated scheme percentages.

The table below sets out the relevant dates and schemes:

SCHEME NAME

SCHEME TYPE

JURISDICTION

SCHEME %

COMMODITY

Large-scale Renewable Energy Renewable Energy Federal Target - LRET

Change every calendar year. Must be declared by 31st March

Electricity Only

Small-scale Renewable Energy Renewable Energy Federal Scheme - SRES

Change every calendar year. Must be declared by 31st March

Electricity Only

Victorian Energy Efficiency Energy Efficiency Victoria Only Target - VEET

Change every calendar year. Must be declared by 31st May

Electricity & Gas

Energy Savings Scheme - ESS

New South Wales Only

Set scheme percentages per year.

Electricity & Gas

Energy Efficiency Improvement Energy Efficiency Scheme - EEIS

Australian Capital Territory only

Set scheme percentages per year.

Electricity Only

Retailer Energy Efficiency Scheme - REES

South Australia Only

Specific to each retailer

Electricity & Gas

Energy Efficiency

For your information, we provide below a recap on the relevant schemes: LRET & SRES – Federal renewable energy schemes. They provide a financial incentive for the installation of large and small scale renewable energy generation. Large-scale systems tend to be commercial wind and solar installations. Smallscale systems tend to be rooftop solar panels. VEET & ESS – State based energy efficiency schemes for VIC and NSW. They create financial incentives for organisations to invest in energy efficiency activities. REES & EEIS – State based energy efficiency schemes for SA and ACT. They create financial incentives for organisations to invest in energy efficiency activities. Unlike VEET and ESS no certificates are created Emissions Reduction Fund (ERF) – Federal scheme to provide incentives for emissions reduction activities. Periodic auctions are held to assess the lowest cost options and award a contract for delivery of emissions reduction. One Australian Carbon Credit Unit (ACCU) is issued per tonne of carbon abated. Article courtesy Energy Action.

Would you like to advertise here? For more information Please contact: Russell Sturzaker Phone: (03) 8620 2802 rsturzaker@rwta.com.au COLDºRUNNING I APRIL 2016 33

[ ARTICLE ]

CoR

We have seen many examples of Policies and Procedures over the years and they have an enormous range in terms of quality and content. I will cite some examples: •

Company “A”, completed a Gap Analysis of their CoR and were told they had 140 fail points within their system, they were duly horrified. The board decided to get some expert help in fixing the problem. They engaged their company lawyers to write Policies & Procedures for CoR. Some months later the P&P’s were complete, all 140 of them. The P&P’s although legally exact, did not reflect the actual operation and were written in a way that the average person could not understand. In summary, useless in the operation and in fact a similar case for an SA company had seen a prosecution for similar issues.

•

Company “B”, needed P&P and the operations guy had a mate who had set it up in his business. He borrowed the material, changed the logo, business name and address and put it up as their own. All the sections were there and it looked good, but again was useless for the business as it did not reflect his business in any way shape or form

•

Company “C” set up their own, and used their in house OH&S person to write them. They were concise and reflected the business, however, there was no “How to” it was all about who is accountable for what.

So looking at the above cases, how are your Policies & Procedures, will they fulfil what they should be doing? Initially let me clarify what the two components of a Policy & Procedure are: The definition of a Policy is: “A course of action, guiding principle, considered expedient, prudent, or advantageous” Basically WHAT you intend to do The definition of a Procedure is: “A fixed, step-by-step sequence of activities or actons (with definite start 34 APRIL 2016 I COLDºRUNNING

Policies, Procedures & “Reasonable Steps” and end points) that must be followed in the same order to correctly perform a task.” Basically HOW you will do it With the advent of major cooking shows on TV a cooking example is quite good to explain a Policy & Procedure. If you think of the “name” of the cake with its brief description as the Policy. Then all the ingredients, by actual weight and volume, all the equipment you will need to make it happen. Then the detailed instructions of what to mix when and how to mix it and what consistency. What size baking tin to use and how to line it, oven temperature and time, how to test it to see if it’s finished. Then to top it off a picture of what it should look like when complete. Basically it’s a clear set of instructions with KPI’s that can be picked up by another person who has never see the recipe before and they can produce a comparable item. Could the same be said for your Policies & Procedures. Therefore when developing P&P there are 5 areas which we need to focus on to prevent major pitfalls: 1.

The P&P themselves, to what level of detail should they get to? If the P&P fail to have enough detail, then their impact may be too loose and not cover the legislation effectively. If they are too big then they become a voluminous epistle that is never read let alone used.

Risk of making the P&P to specific and restrictive which means that if a situation deviates from what we have prescribed then workers will become paralysed as they will not be able to make decisions on how to handle a situation. This may lead to the logistics function not occurring, but more likely that the function will be executed in an uncontrolled manner leaving the company exposed under C&E/CoR.

Not taking into account all the relevant groups. Under new legislation a person engaged to complete a task on a site (including a truck) will be deemed as a “worker”, regardless of how they are engaged, be they a direct employee, a subcontractor, through a labour hire agency, via a 3rd or 4th party.

4. P&P of intent not action; this habit

is common with many companies

and they develop P&P that looks

great on the bookshelf and has

significant version control and indexing but in reality bears no resemblance to what actually happens within the business. This means staff will continue to complete tasks in the same way they always have and pay no attention to the company P&P. 5.

Copying a P&P system from a “mate” or elsewhere in a business group, completing a “search and replace” on the business name and logos, and they have instant P&P for their business.

Preparing effective P&P A few golden rules for P&P: 1.

Know how your business “actually” works before you start. We are not looking for what should happen more what the business is really doing, so don’t get the manager to write this, get the front line operators to do it.

You must be able to “map” your business processes so that they can be followed by a “trained monkey” in the event that the normal operator is unavailable at short notice

3. Compare your actual processes to the C&E/CoR regulations and see where the holes are 4. Fix up the holes in your business 5. Write concise P&P to cover what you actually do 6. Train “workers” on the actual application of P&P 7.

DO NOT get sucked in to developing a complicated P&P system: KEEP IT SIMPLE, KEEP IT LEGAL

Bear in mind that regardless of how fantastic the bookshelf system looks, if authorities embark on an investigation due to offences they will not care about what the P&P says, what they will be looking for is what actually happened leading up to the offence. If the P&P you have developed are not capable of controlling the compliance issues then they will be immediately discounted.

[ ARTICLE ] Procedure Steps

Who Should do it

• Review your methods at the operational level, find out what you “really do”

• Operation level staff

• Map them out in simple process pictures, don’t go overboard on the words

• Operation level staff

• Make sure you have got it down right by asking drivers and operational staff to review

• Drivers, Forklift, Leading hands etc.

• Compare what you do to what is required under the legislation

• Advisors

• Modify what you really do to make sure its legal

• Operations/Advisors

• Write your Procedure in simple terms and use diagrams and pictures rather than big words

• Operations

• Get drivers and operational staff to review it

• Drivers, Forklift, Leading hands etc.

• Finalise your procedure

• Operations/Advisors

• Now generate your Policy from your procedure

• Operations/ Management

• Write your Policy and publish it.

• Operations/ Management

Now the BIG step! • Train everyone how to use and apply the Policy & Procedure You now have a Policy & Procedure that actually works at an operational level and not a beautiful looking but operationally useless document. The above sequence may well be contrary to most people’s thinking as it starts from the bottom up. This is very much on purpose; why you ask? It gets the operational level personnel involved and contributing to what they will need to apply in their day to day operation and the process is written from what “actually happens” not a theory of “what should happen”. In summary if you are NOT comfortable in getting to this level of accuracy with your P&P, get some help, it will be cheaper and quicker in the long run.

Reasonable Steps

The most common question I get asked with the C&E legislation is “can you give me a list of Reasonable Steps that I can follow. Of the course the answer is “No” it all depends what is reasonable at the time. Policies & Procedures as mentioned above are heavily tied into “Reasonable

• Operations/ HR

Steps”. As such I will try to answer the “Reasonable Steps” question through Policies & Procedures. Having said that the “procedure” the how to, we continually see procedures that are so vague the person who they apply to would have no idea in how to apply them. So here are some tips; always start from the right end and work backwards! That is start at the end point (e.g. Truck or Dock) and work backwards to the office. When talking Reasonable Steps you need to remember that although good Policies & Procedures go a long way to keep you compliant, it is still a matter of how those Policies & Procedures are implemented that really makes up Reasonable Steps. With that in mind follow the logic process below in getting your P&P in place:

Training – Train all those affected not only in the technical aspects of what they cover but also what the procedure is

4. Implement – Make sure that the P&P is fully implemented and not just sitting on a shelf 5.

Application – Check back in the workplace to ensure that the P&P is actually being applied and not ignored.

6. Continuous Improvement – go back to #1 and fine tune all points in this list. Daunting task so far you would agree, so how do you simplify this? There is a very quick way to simplify all the Policies & Procedures and how they convert into Reasonable Steps. The answer is easy… Codes of Practice! There are several codes of practice for many sectors of industry and many in the pipe line. The benefit of being part of a Code of Practice is twofold: 1.

You do not have to reinvent the wheel, all the framework has been done and you merely need to fill in the relevant company specific content

Safety in Numbers – if your business is one of many who do things in a certain way, then this could be taken as a Reasonable Step.

In summary, a Reasonable Step, is what was appropriate on the day, and did the business and its workers do as much as they could to predict and prevent a breach of road law. For more details on Policies & Procedures, Reasonable Steps & Codes of Practice contact mike@latus.edu.au or call 1300 008 386 INFLUENCE = CONTROL = RESPONSIBILITY = LIABILITY

Doing nothing is not an option

Visit www.latus.edu.au for live chat with one of our staff.

1. Policy – Develop a Policy that all in the organisation have “buy-in” 2. Procedure – Develop Procedures that are like a cake recipe

Mike Wood Managing Director – LATUS Logistics Risk Specialists COLDºRUNNING I APRIL 2016 35

[ ARTICLE ] When it comes to auditing the warehouse, most of our attention focuses on “how to,” but underlying all this commentary is “why?” Auditing any operation is hard work. Indeed, some may think there are insufficient potential results to justify the effort involved. Just as people can get sick at any time, warehouses have the ability to slip into trouble. Typically, the trouble does not strike suddenly, but creeps up in almost imperceptible ways. And it is not noticed until it is difficult to correct. Deterioration of customer relationships is one example of trouble that can be difficult to detect until it is too late and the damage has been done. Management looks for benchmarks, or standards, and frequently they have not been established because measurements have not been kept. When data gathering is part of the audit process, it is relatively easy to create and revise performance standards. Management wants continuous improvement in profitability, but few people have reliable metrics to gauge the profitability of the warehouse operation. Measurements also serve as a baseline to consider new technology. The starting point of such considerations is to create a reasonable estimate of the benefits that will occur if the new technology is acquired. As processes are audited, you are likely to uncover redundancy in the form of reports and tasks that are assigned simply because “we’ve always done it that way.” Relationships with people are fragile, and frequent examination of the people management process also can provide an early warning of potential trouble. We also audit the physical side of the business: facilities, housekeeping and inventory. The audit process provides early indication of related changes. As we examine the “why” of the audit process, each of these points will be considered in greater detail.

Staying healthy

The first reason we audit warehouse performance is to provide an early warning that the operation is slipping into trouble. What are the signs of trouble in a warehouse? Illness can strike suddenly in people, but seldom is trouble a sudden occurrence in the warehouse. Recovery from illness also can be sudden, but we 36 APRIL 2016 I COLDºRUNNING

Why should you audit your warehouse? have never seen a troubled warehouse recover quickly. Because it is easier to correct the condition and reverse the process when slippage is detected in its earliest stages, the best way to maintain good health in a warehouse is to create metrics, reports and inspections that serve as an earlywarning system. Housekeeping provides an excellent example. Good housekeeping is a matter of habit, as is bad housekeeping. When the appearance of a facility starts to change, there are always reasons. Perhaps the work crew is “too busy,” most likely meaning management has set other priorities before housekeeping. Sometimes a single supervisor sets a poor example, or no example at all, and housekeeping in his/her department begins to deteriorate because the signal has been received that nobody cares. When sloppy habits become firmly ingrained, they can be difficult to change. For this reason, housekeeping requires constant monitoring to ensure that excellence becomes a habit. Damage control is another case where slippage can occur over time, as bad habits set in. Warehouse damage is often caused by careless or sloppy handling. Observers have noted most individuals drive their automobiles by habit, so a reckless driver handles every vehicle carelessly. The same habits can govern the operation of mobile lift equipment. Bad habits can be corrected by training, so training should be included in the audit process. When a warehouse crew has become accustomed to a certain level of warehouse damage, there is a tendency to accept the status quo. A regular audit process can assist management in discovering and

correcting high levels of warehouse damage. In many cases, the audit might uncover an external cause, such as inadequate packaging. Monitoring customer relations The prime reason for the existence of warehouses is to provide better customer service than would be available without the operation. Relationships with people can be fragile and transient, changing as the people change. A warehouse manager who has maintained an exemplary relationship with one customer may need to behave differently if a key person at that company is replaced by an individual having different priorities and a different personality. Customer relationships depend upon perceptions. Warehouse service is only as good as the customer perceives it to be. Those perceptions can change for subtle and irrational reasons, as basic as two people who are unable to work together. For the private warehouse operator, there may be several kinds of customers, both internal and external. For example, the distribution center for a specialty retailer exists to provide dependable service to the stores. In this case, the store managers are the customer. For the e-commerce or mail order fulfilment center, the customers are individual consumers. In some warehouse operations, the consignee that receives the shipment may be the customer’s customer, yet that consignee is truly the most important judge of our quality. We monitor customer relations by asking the customers how they feel about service levels. It is easier to survey a relatively small number of store managers than it is to monitor the perceptions of millions of mailorder consumers, yet the measurement

[ ARTICLE ] of customer relationships requires a constant need to ask everyone, “How are we doing?” When slippage is detected, we must find out why. Auditing for process and cost control Does our warehouse operation cost more than it should? We can answer that question either by comparing our costs with those of similar warehouses, or by undertaking an engineering analysis to compare our operations with a productivity standard. Sometimes, we arrive at a cost benchmark simply through historical analysis, and the presumption that costs this month should have some relationship to costs for the same month last year, or three years ago. If we control several warehouses, it may be useful to compare various cost areas for each operation. In addition to cost control, we need to consider process control. We audit to determine if there is one “best practice” for order selection, and whether each and every order picker follows that procedure. Process control includes sequence, so we audit to determine whether the order in which jobs are being done is the best possible sequence, or whether the sequence followed in warehouse B is superior to the sequences used in warehouses A and C. Part of process control is the discovery that some operations — and even some warehouses — are redundant. Some operations we perform quite well should not be done at all. Staging is one example. Automated checking and improved quality control have eliminated the need to stage and inspect at many receiving and shipping docks. If this is the situation, and staging is occurring, it would be exposed as redundancy during an audit and recommended for elimination. Auditing to maintain quality For the company placing high priority on quality control, the purpose of the warehouse audit is to be certain that the quality standards established elsewhere in the organization are maintained at the warehouse. For example, a quality audit might focus on lot control. In the production of pharmaceuticals and other products, each item may consist of several production lots, and each must be separated. Sometimes the newest lots are held in quarantine pending a quality clearance. The auditor verifies that all lot separations are maintained.

Auditing the people relationship Some companies take great pride in maintaining superior relationships with their workers. Many find it easier to maintain such relationships in the office than in the warehouse. Those companies intending to maintain a union-free workforce recognize that warehouse workers may be more vulnerable to labour-organising drives than other company employees. For these reasons, the monitoring of interpersonal relationships is a necessary part of the audit process. Our skill in managing people has quantitative as well as qualitative measures. We measure quality by asking people how they feel about their jobs, and quantity by examining employee turnover. Monitoring physical assets The two physical assets of prime concern in warehousing are inventory and storage facilities. A continuing storage density calculation should show our progress or lack of same in changing the number of units that can be stored in each square foot of space. The auditor may explore ways in which storage density can be increased through various kinds of mobile lift equipment, different types of storage rack or improved packaging. While all warehouse managers must control the inventory they store, a few of them proceed from inventory control to inventory management. In the management function, they may discover some of the items now in the warehouse could be eliminated with little or no impact on customer service. Therefore, the audit process should do more than measure the success of inventory accuracy and control. It also should identify opportunities to improve the management of the inventory. Justifying warehouse improvements Warehouse managers often are competing with manufacturing, marketing and other departments in the search for capital appropriations to improve their operations. The financial officer may be more impressed by a new machine for the factory than a new lift truck fleet for the warehouse. The audit process can be used to help management sell the financial people on approval of capital investments for the warehouse. Every capital expenditure in the warehouse is justified by savings in space or time. We improve utilization of existing space by increasing storage density. If the purchase of lift truck equipment

and/or new racking is needed to improve storage productivity, the capital investment in that equipment is justified by the avoidance of leasing outside space or construction of additional warehouse space to handle a growing inventory. If space utilization has been tracked on a continuing basis, the process of demonstrating a payback is far easier than when no benchmarks for storage productivity exist. We improve productivity (use of time) by examining material handling. There are at least four ways to improve handling output: • Use facilities and equipment for longer hours with multiple shifts • Eliminate redundant processes, such as staging • efine and improve procedures, such as order picking • Use technology to replace people When the labour market makes it impossible to find qualified people, tools to improve handling productivity become easier to justify. The labour market, as well as financial analysis, will influence the justification decision. Putting it all together The process of auditing warehouse performance is sometimes ignored and frequently misunderstood. It is far more than a practice of giving grades or dispensing discipline. It is more than benchmarking, though comparisons may be part of the process. Warehousing is deceptively simple. Many think the function is so basic that any manager can run an effective warehouse, but when the operation does not run smoothly, they do not understand why. We audit warehouse performance to get an early warning of trouble, to facilitate the search for best practices, and to create an audit trail that records progress in improving the utilization of space and time. About the Author Ken Ackerman has been active in logistics and warehousing management for his entire career. He is editor and publisher of Warehousing Forum, a monthly subscription newsletter. Since 2007, he has also been a group chair for Vistage International, the world’s leading chief executive organization. Before entering the consulting field, he was chief executive of Distribution Centers, Inc., a public warehousing company that is now part of Exel Logistics USA. In 1980, Ackerman sold the company and joined the management consulting division of Coopers & Lybrand. Later, he formed the Ackerman Company, a management advisory service. You can reach Ken at ken@warehousingforum.com. COLDºRUNNING I APRIL 2016 37

[ MEMBER NEWS ]

Dematic acquires NDC Automation Dematic, a leading global supplier of integrated automated technology, software and services to optimise the supply chain, today announced the acquisition of NDC Automation, a leading provider of Automated Guided Vehicles (AGVs) and software in Australia and New Zealand. NDC Automation will operate under the trade name NDC Automation for a transition period locally, and globally as Dematic, and will continue to deliver the highest quality AGV solutions for Dematic customers. Ulf Henriksson, Dematic President and CEO stated, “We are pleased to announce the acquisition of NDC Automation, which enhances our ability to design, deliver and deploy global AGV solutions

that move, store and/or retrieve goods.” Henriksson continued, “The NDC portfolio expands upon an existing portfolio that will dynamically optimise the movement of raw materials or finished goods as they move throughout a facility, including software that provides real-time information addressing material flow metrics.”

and leverage our technology, deep breadth of experience and provoking thought leadership in the area of goods transportation,” stated Tommy Eklof, NDC Automation CEO. “We look forward to offering our combined technology solutions to create competitive advantage for the Dematic and NDC customer base.”

Headquartered in Australia, NDC Automation has been providing AGV solutions for companies located in Australia and New Zealand for more than 40 years. The company has pioneered major advances in the areas of safety and vehicle navigation for its customers.

About Dematic

Glen Borg, Dematic CEO ANZ/ ASEAN commented, “This acquisition further enhances our offerings to the global marketplace, complementing our storage equipment and logistics IT technologies and providing our customers with expanded flexible, scalable and modular solutions.”

Dematic is a leading supplier of integrated automated technology, software and services to optimise the supply chain. Dematic employs over 5,000 skilled logistics professionals to serve its customers globally, with engineering centres and manufacturing facilities located across the globe. Dematic has implemented more than 4,500 integrated systems for a customer base that includes small, medium and large companies doing business in a variety of market sectors.

“The NDC Automation team is excited to join the Dematic organisation

Dematic receives top Honeywell partner recognition Dematic, a leading global supplier of integrated automated technology, software and services to optimise the supply chain, was recently named Honeywell’s ANZ 2015 Partner of the Year as part of the Honeywell Australia and New Zealand Executive Partner Briefing 2016. Dematic received the award in Melbourne recently, from a field of over 50 Honeywell partners across Australia and New Zealand.

Brian Lang, Dematic’s Director of Real Time Logistics, said he was proud that Dematic had received acknowledgment as a leader in the materials handling sector. “Dematic is excited to once again have been recognised by Honeywell, this year as their number one partner in Australia and New Zealand,” said Mr Lang. “Dematic has had a strong global partnership with Honeywell for many years and we are committed to working closely with them to deliver current and new solutions to ensure we are meeting the needs of our customers.” Tony Repaci, Honeywell Sensing and Productivity Solutions Country Manager,

ANZ said: “I applaud Dematic for its ability to deliver a wide breadth of solutions for distribution centres -, in particular Voice and traditional DC technologies. Congratulations on achieving the 2015 Partner of the Year award.” Further information: Dematic Pty Limited, 24 Narabang Way, Belrose NSW 2085, Australia. Tel: +61 2 9486 5555. Fax: +61 2 9486 5511. www.dematic.com.au About Coby Colby® products are designed, engineered and manufactured by Dematic Pty Limited. “Colby” and the “Colby Chevron Mark” are registered trademarks of Dematic Pty Limited.

Cold Chain Order Fulfilment The Cold Chain industry continues to be challenged with economical and productive distribution and delivery of cold and/or frozen products. Dematic can help. Learn more about Dematic full pallet and case picking order fulfilment solutions for cold chain environments. Visit www.dematic.com.au/cold-chain, or call 02 9486 5555 today.

www.dematic.com.au/cold-chain

38 APRIL 2016 I COLDºRUNNING

We Optimise Your Supply Chain

[ MEMBER NEWS ]

MaxiTRANS NSW Branch Open Day Success MaxiTRANS has held a successful Open Day at its new NSW dealership in the Sydney suburb of Smeaton Grange. Customers, suppliers and supporters visited to be treated to lunch, tours and trailer displays. MaxiTRANS Managing Director, Michael Brockhoff, said that he was excited by the opportunity of showing off the 20,000m2 facility to the industry. “The addition of a wholly-owned MaxiTRANS dealership in Sydney furthers our ongoing investment into providing high levels of customer service through our industryleading sales, parts, service and repair network,” he said.

MaxiTRANS NSW boasts an over 2500m2 service workshop, including paint booth, brake roller tester, shaker tester and 4 trailer service pits.

MaxiTRANS NSW Branch offers sales of each of the Company’s leading trailer and rigid body brands, not to mention used trailer sales and rentals. The impressive over 2,500m2 service workshop is equipped to complete all fibreglass, aluminium and steel repairs from minor servicing to full rollover repairs, as well as trailer pre-deliveries and tipper body fit-ups. “The capability of the new dealership adds value to our sales offices in the Riverina and Central Coast, while giving customers access to our products regardless of their location,” Michael said. A point of interest on the day were a number of new innovations from the Company. On site were a number of award-winning VersaBOLT tippers, released to the market less than 2 weeks prior to the Open Day. Also on display was the Freighter AutoHold with Auto Mezz Decks seen at the 2015 Brisbane Truck Show and one of Freighter’s patented EziLiners®, which included inside it a sneak preview at the brand’s soon-to-be-released “spring assisted” new load restraint gates. The new MaxiTRANS dealership is strategically located at 5 Anzac Avenue, Smeaton Grange, in Sydney’s South West. It is just 4km from the Hume Freeway, the main transport link between Sydney and Melbourne. The location provides easy access via the

The workshop is equipped to complete all fibreglass, aluminium and steel repairs from minor servicing to full rollover repairs, as well as trailer pre-deliveries and tipper body fit-ups.

MaxiTRANS NSW Branch, located in Smeaton Grange, south west of Sydney.

freeway to Sydney CBD including both the port and the proposed Moorebank intermodal freight precinct, as well as north to the Central Coast and Brisbane.

supplier of road transport equipment for the general freight, temperature controlled freight and bulk transport market sectors.

MaxiTRANS NSW Branch can be reached via phone on 1300 MAX NSW (1300 629 769).

MaxiTRANS is also a leader in trailer repair and service support to the Australasian transport industry as well as being a significant supplier of parts through retail brand, MaxiPARTS.

For more information, please visit www. maxitrans.com/news/ About the Company MaxiTRANS is Australia’s largest supplier of road transport trailing solutions.

To find out more about the MaxiTRANS Group of Companies, please visit: www.maxitrans.com

Synonymous with road transport in Australia through the market leading brands Freighter, Maxi-CUBE, Lusty EMS, Hamelex White, AZMEB and Peki, MaxiTRANS is the leading COLDºRUNNING I APRIL 2016 39

[ MEMBER NEWS ]

3 Key Challenges For Refrigerated Warehouses That Can Be Solved With Automation Chilled and frozen foods are becoming more popular thanks to their convenience in our busy lives. The variety in flavour and options has also increased, with dozens of choices now available, from frozen meals to packaged meat, deli and dairy products. But what are the key logistics challenges that come with these trends? How can automation play a role in addressing these? Space and Cost Efficiency: Meeting demand with an increasing product range can quickly limit floor space, and simply expanding the footprint will result in higher energy costs. An automated system using high density storage is able to optimise cubic space by stacking vertically or multiple deep. Cube utilisation improvements of 40% along with footprint savings of approximately 30% can be achieved. This decreased footprint results in lower energy costs from reduced surface area and cube. An automated deep-freeze solution for XPO Logistics in Belgium has delivered more storage space in an energy conscious and efficient site, whilst reducing operational costs. This was achieved with a six crane highbay warehouse where pallets are stored double deep and up to 22m high. As a result, increased storage volume and picking

efficiency was achieved on the smallest possible footprint. Fast availability: Together with the wider product range, there is also the trend towards smaller and more frequent delivery quantities. Faster availability due to the narrowing delivery windows and shorter product life cycles requires flexible systems that allow inventory to be moved quickly and precisely. Whilst meeting these demands, the system also needs to ensure product quality and traceability throughout the process. Innovative automated systems can offer not only improved performance, but also additional performance criteria that can be tailored to meet the exact requirements of the business. German company Apetito built a new automated distribution centre for their frozen meals, incorporating an optimised picking process. The shipping area has eight packing stations with a sophisticated sequencing process that ensures order processing is timeefficient and virtually error-free. Thanks to this implementation, the distribution centre is able to handle up to 730 load carriers per day in two shifts, which roughly matches the deliveries to 1,000 clients during the same period.

Staff retention and safety: Staff recruitment, retention and safety can all be a concern due to the challenging working conditions of a chilled or deepfreeze warehouse. With a goods-to-person approach, by automating storage, distribution or order picking processes, it’s possible to keep employees out of certain areas or to provide greater ergonomic benefits in others. A new distribution centre for United States Cold Storage seamlessly connects production and distribution facilities for an ice cream producer in Texas. Smart design was critical to limit the distance travelled by manual operators to reduce their exposure to the harsh -20°F environment. Pallets are transported through an elevated corridor safely above other traffic where they are moved by conveyor to a holding area. The pallets are then automatically retrieved and dispensed to another area where they are manually handled to long-term storage or shipping. The use of automated transport systems such as Laser Guided Vehicles also reduces the risk of collision and enhances overall safety. For the full case studies, visit www.swisslog.com and go to Success Stories, or email wds.au@swisslog.com for further information on automated solutions for refrigerated warehouses.

SOLUTION DESIGN FOR TEMPERATURE CONTROLLED ENVIRONMENTS Swisslog solutions for material handling, order fulfilment and inventory control can reduce risk and complexity and help you control the cold chain, enabling greater food traceability for security and efficiency.

COLD&CONTROLLED® INCREASE CAPACITY AND MINIMISE COSTS

Contact us to find out how Swisslog can help your temperature controlled warehouse meet the demands of this growing market. 02 9869 5900 wds.au@swisslog.com Intralogistics Automation – Design, Develop and Deliver. www.swisslog.com/australia

40 APRIL 2016 I COLDºRUNNING

[ INTERNATIONAL NEWS ]

APRIL 2016

NZ Cold Storage Association

84th NATIONAL CONFERENCE AND EXHIBITION 7th August - 9th August 2016 Pullman Hotel & Conference Centre Auckland The Conference Programme will be released over the next few months detailing Speakers, Partner Programme, Social Events, Golf, Ten Pin Bowling activities, and Accommodation Details. Auckland is the perfect location for you to add a few days onto your trip and make a holiday out of your time while you enjoy some of the many attractions available to you such as: Auckland Museum & Domain Park, Sky Tower & Casino, Viaduct Harbour, Kelly Tarlton’s Underwater World, Auckland Zoo and Motat, Waiheke Island Wineries and lots more… Sparkling waters catch the eye and beckon from almost every point in Auckland, New Zealand’s largest city. Set amongst volcanic islands and a multitude of harbours, it’s easy to see why we call it the City of Sails. Experience one of Auckland’s superior 5 star hotels and top-of-the-line features and amenities. The luxury hotel accommodation comes with complimentary high speed internet which is available throughout all guest rooms, public areas and conference spaces. So make sure you put these dates in your diary. Exhibitors and sponsors should contact Jack Bills

to discuss your involvement in what is going to be an exciting and worthwhile conference. For more information or for bookings please contact:

Jack Bills NZ Cold Storage Association Ph 07 579 9915 Mobile 027 235 8636 nzcoldstorage@xtra.co.nz

COLDºRUNNING I APRIL 2016 41

[ NEWS FROM GCCA ]

Colin Longmuir of Henningsen Cold Storage Wins WFLO Don Schlimme Future Leader Award Colin Longmuir, Warehouse Manager for Henningsen Cold Storage Company, is the winner of the World Food Logistics Organization (WFLO) 2016 Don Schlimme Future Leader Award. Organized by the Global Cold Chain Alliance (GCCA) and its Core Partner WFLO, the Don Schlimme Future Leader Award recognizes outstanding young professionals in the North American cold storage industry. The award is named in honor of Donald V. Schlimme, Ph. D, who passed away in 2012 and was a longtime member of the World Food Logistics Organization (WFLO) Scientific Advisory Committee (1983-2012) and a WFLO Staff Advisor for many of those years. He was an expert in food science and cold storage and was committed to sharing his extensive knowledge. GCCA President and CEO Corey Rosenbusch commented, “Colin epitomizes the type of forwardthinking young leader that will propel our industry into the future. He is truly deserving of this honor and we look forward to his future contributions.” Longmuir received the award at the 52nd WFLO Institute on February 2, 2016 in Atlanta, GA where he competed with five of his fellow Don Schlimme Future Leader Award nominees. Those nominees included Ashley Albers – Nor-Am Cold Storage, Antonio Matos – RLS Logistics, Mitchell Harper – US Cold Storage, Robert Hernandez – US Cold Storage and Nick Faraone – US Growers. The 2016 Judges panel consisted of: • David Stuver, Americold Logistics, WFLO Board Member • Eben James, Trenton Cold Storage, IARW Vice Chairman 42 APRIL 2016 I COLDºRUNNING

• Ron Buford, Premier Refrigerated Warehouse, IARW Board Member • Karen Pallotta, daughter of the late Don Schlimme Longmuir has worked at Henningsen since 2009, when he joined the company as a Management Associate and was promoted in 2011 to Warehouse Manager. He sees a future for the cold chain industry that depends on the effective integration of automated technologies into existing operations. “Today companies in our industry are faced with the challenge of continuing to serve an ever-growing world population in local and distant regions,” he stated during his presentation to the WFLO Institute attendees. “This growth combined with changes in the economic, political, and global climate landscape force our industry to be nimble and our systems constantly refined to ensure the continued support of our consumers.” He will compete for the GCCA Global NextGen Award at the 125th IARWWFLO Convention April 16-19, 2016 in Las Vegas, NV.

Comprised of its Core Partners, including the International Association of Refrigerated Warehouses, the World Food Logistics Organization, the International Institute of Ammonia Refrigeration, the International Refrigerated Transportation Association, and the International Association for Cold Storage Construction, the Global Cold Chain Alliance (GCCA) represents all major industries engaged in temperaturecontrolled logistics. GCCA unites partners to be innovative leaders in the temperature-controlled products industry. WFLO delivers education and research to the industry and empowers economic development by strengthening the global cold chain. For more information about GCCA and WFLO, visit www.gcca.org.

[ NEWS FROM GCCA ]

Teresa Miller of Sodus Cold Storage Named 2016 WFLO Institute Scholarship Winner RefrigiWear Chief Revenue Officer, Ryan Silberman adds, “Teresa Miller is a great example of the type of emerging leader who can grow and succeed through this scholarship.”

The World Food Logistics Organization (WFLO) and RefrigiWear announced that Teresa Miller of Sodus Cold Storage is the winner of the WFLO Scholarship for the 52nd WFLO Institute, held on January 30-February 3, 2016 at the Georgia Tech Hotel and Conference Center in Atlanta, Georgia. “I am so honored to receive this award and look forward to gaining a more indepth understanding of the cold chain industry while at the Institute to ensure that our programs remain on the cutting edge of best practices in the industry,” Miller stated. For five years, RefrigiWear and the WFLO have awarded one student a full scholarship for the tuition and related expenses to attend the WFLO Institute, the cold storage industry’s premier training event. Recipients are selected based on their performance, leadership skills, and dedication to the industry. Miller started at Sodus Cold Storage as an administrative assistant and worked her way up by volunteering to help in any area needed and was promoted to a position overseeing safety, compliance, and facilities. Miller has attended the Global Cold Chain Alliance (GCCA) Assembly of Committees meetings and recently joined the association’s Safety and Government Affairs Committees. “Teresa demonstrated leadership by building the company’s Process

More information on the WFLO Institute can be found at www.wflo.org/institute.

Safety Management (PSM) program. Previously it was a bit disjointed with no one person driving consistency” says Sodus Cold Storage President Sandi Bishop, who nominated Miller for the scholarship award. “She is a member of our executive management team and works closely with everyone and mainly with the maintenance department to ensure our mechanical integrity is at a solid and documented level. I personally, and on behalf of Sodus Cold Storage, want to thank RefrigiWear for helping make this scholarship possible.” As the recipient of this scholarship, Miller will be recognized during the opening session of the WFLO Institute and at a dinner to be held in her honor during the event. In addition, RefrigiWear will bring Miller to its manufacturing plant in North Georgia for a tour.

Comprised of its Core Partners, including the International Association of Refrigerated Warehouses, the World Food Logistics Organization, the International Institute of Ammonia Refrigeration, the International Refrigerated Transportation Association, and the International Association for Cold Storage Construction, the Global Cold Chain Alliance (GCCA) represents all major industries engaged in temperature-controlled logistics. GCCA unites partners to be innovative leaders in the temperature-controlled products industry. WFLO delivers education and research to the industry and empowers economic development by strengthening the global cold chain. For more information about GCCA and WFLO, visit www.gcca.org. A Core Partner of ©

Retracom

Refreshing ideas in Cold Storage

2016 FRANK VALE (FUTURE LEADERS) AWARD

Retracom are proud to have been the major sponsor of the Frank Vale Award. The Frank Vale Award has been awarded annually since 1993 to acknowledge talented young

people within the industry, who have demonstrated to their employers that they have the potential to become future leaders, and make a positive contribution to the development of the Australian Cold Chain Industry.

Retracom has a strong relationship with the RWTA and is looking to continue that relationship for many years to come.

\. Retracom

Contracting

Retracom Contracting 80 Magnesium Drive, Crestmead Qld 4132 Ph: 1800 008 944 www.retracom.com.au

COLDºRUNNING I APRIL 2016 43

[ NEWS FROM GCCA ]

GCCA Hosts Successful European Cold Chain Conference The Global Cold Chain Alliance (GCCA) successfully hosted its 19th annual European Cold Chain Conference, 6-8 March 2016 in Amsterdam. The conference welcomed over 100 professionals from the warehousing, construction and transportation branches of the cold chain industry, with 17 countries represented. Most notable were the delegations from Turkey and China. Rated as a key venue for all cold chain stakeholders, the GCCA European Cold Chain Conference featured plenary sessions, breakout education presentations, networking events and a table top exhibition. Designed to address the typical issues of each segment of the profession, this year’s programme covered topics such as Energy Savings through Emerging Technologies; Transportation Trends and Claims; Cold Chain to Reduce Food Losses; Worker Health and Safety; and EU Government Affairs on the cost of border controls. Business and industry speakers

from Europe and around the globe brought their expertise to the conference making for a diverse set of speakers to the programme. “The ‘Next Gen’ panel of future industry leaders was a favourite amongst the delegates and mine as well,” stated GCCA President and CEO Corey Rosenbusch. “I continue to hear from members around the world that talent management is a top priority for them – and facilitating discussions with young professionals currently working in the industry gives us tremendous insight into how to attract and retain their peers.” The conference exhibition generated valuable opportunities for participating suppliers to meet qualified business contacts and decision-makers. The format of the ‘expo,’ adjacent to the conference programme, triggered a lot of interest and was much appreciated by both visitors and exhibitors. The additional networking events and functions across the conference created the ideal atmosphere to foster business development. Julie Hanson, GCCA’s new European Director, oversaw the planning and execution of the conference as her initial focus with the association. Moving forward in her role, she will concentrate on relationshipbuilding and developing valuable member benefits. Hanson stated, “My primary role is to reinforce the services tailored towards European members as an add-on to the existing GCCA global benefits portfolio, raise our brand awareness

across the continent and make sure our European network continues to grow and strengthen.” Overall, the response of the audience has been overwhelmingly positive with evaluations giving the event extremely high marks. Presentations from the 2016 conference are posted on the GCCA website. More details regarding the dates and location of GCCA’s 20th European Cold Chain Conference will be released shortly. In addition, read more about GCCA’s new European Director – Julie Hanson, here. For more information about the GCCA future events, visit www.gcca.org.

The Global Cold Chain Alliance (GCCA) represents all major industries engaged in temperature-controlled logistics around the world. It serves as the focused voice of the cold chain industry, representing 1,300 member companies in 75 countries. GCCA unites partners to be innovative leaders in the temperature-controlled products industry : it is currently comprised of four Core Partners, including the International Association of Refrigerated Warehouses, the World Food Logistics Organization, the International Refrigerated Transportation Association, and the International Association for Cold Storage Construction. For more information about GCCA, visit www.gcca.org.

STRONGER INCREASED FRONTAL IMPACT RESISTANCE OF OVER 200%

ColbyRACK® smarter, safer, stronger storage

1800 COLBY 1 WWW.COLBY.COM.AU 44 APRIL 2016 I COLDºRUNNING

[ NEWS FROM GCCA ]

Registration Opens for the 2016 Global Cold Chain Expo Registration has opened for the inaugural Global Cold Chain Expo, this year’s can’t miss event – created in partnership with the Global Cold Chain Alliance and the United Fresh Produce Association. Hosted at the McCormick Place Convention Center, Chicago, Illinois this June 20-22, the event will will put a focus on the all the products, services, technologies, companies, and employees that unite to ensure that perishable products arrive safely to consumers around the world. The Global Cold Chain Expo will be a one-stop-shop for all cold chain needs with 25,000 square feet of trade show space featuring hundreds of exhibitors from every sector of the cold chain, including material handling, warehousing, construction, supply chain/ logistics solutions and transportation providers. Co-located with FMI Connect, the International Floriculture Expo, and United Fresh 2016, the Global Cold Chain Expo will attract more than 15,000 key decision makers from retail, foodservice, processing, production, distribution, logistics, and transportation. Attendees will represent frozen,

refrigerated, ambient and fresh operations. “Increasingly, the fresh produce industry is being challenged to compete with locally grown, short haul fruits and vegetables that are picked closer to ripeness,” said Tom Stenzel, President & CEO of the United Fresh Produce Association. “We believe the only way we can enhance quality control in our supply chain is a deep dive into the cold chain and technologies that bring our growers, packers and wholesalers closer to the consumer.” For industry suppliers, the Global Cold Chain Expo provides a competitive advantage by building brand awareness, expanding audience penetration to all global buyers of temperature-controlled transportation and facilities, and connecting suppliers to key decision makers. Their products and services will be on the world’s largest stage in the cold chain industry. “The cold chain industry has evolved – the pallet-in, pallet-out storage business of yesterday has transformed into a total logistics solution,” stated Corey Rosenbusch, President & CEO of the Global Cold Chain Alliance. “Today’s customers place a higher value and priority on total cold chain solutions, no matter which industry and anywhere in the world.” Early bird rates for the Global Cold Chain Expo are available through May 2, 2016. To ensure the best value, register for the Global Cold Chain Expo & Education

Produced In Partnership Between the Global Cold Chain Alliance and the United Fresh Produce Association and gain unlimited exposure to the features of the expo, as well as those at the United Fresh Expo, the International Floriculture Expo, and FMI Connect. Explore these details, register for the event, and more by visiting http://www.globalcoldchainexpo.org. For questions about exhibiting or sponsoring, contact James Rogers at +1 703 373 4300.

About the United Fresh Produce Association - Founded in 1904, the United Fresh Produce Association brings together companies across every segment of the fresh produce supply chain, including growers, shippers, freshcut processors, wholesalers, distributors, retailers, foodservice operators, industry suppliers and allied associations. We empower industry leaders to shape sound government policy. We deliver the resources and expertise companies need to succeed in managing complex business and technical issues. We provide the training and development individuals need to advance their careers in produce. Through these endeavors, we unite our industry with a common purpose – to build long-term value for our members and grow produce consumption. Visit www.unitedfresh.org

Vaughan Constructions has been our preferred supplier since 1994 and has been our partners in erecting 88,000m2 of cold storage buildings. Gabor Hilton Engineering Manager Oxford Cold Storage Company

vaughans.com.au COLD STORAGE EXPERTS

COLDºRUNNING I APRIL 2016 45

[ MEMBERSHIP ]

Membership Update NATIONAL ASSOCIATE

New Members who have joined RWTA in the past three months are:

Ray Hodge Consulting (Ray Hodge) – Business Coach

Stephen Cleary appointed CEO of AHG Logistics Automotive Holdings Group today announced Stephen Cleary as the new CEO of AHG Logistics. Cleary will support the growth of AHG’s logistics divisions and build synergies across the various business units, comprising Rand Refrigerated Logistics, Harris Refrigerated Logistics, Scott’s Refrigerated Freightways, JAT Refrigerated Road Services, AMCAP, GTB, VSE, KTM and Husqvarna, an AHG statement says. “Cleary possesses significant experience in logistics having

worked for more than 13 years with Qantas Airways freight division, including six years as group general manager,” AHG says. “He was subsequently appointed CEO of Star Track Express (the joint venture between Qantas and Australia Post). “Most recently Stephen was the CEO of Kings Transport.” Cleary, who will be based in Sydney, commences his new role, reporting directly to AHG MD Bronte Howson.

AHG MD Bronte Howson congratulates new CEO Stephen Cleary.

RWTA’s five strategic aims are: • Member Service and Engagement • Education, Knowledge and Collaboration • Representation to Government and Regulatory Bodies • Industry Promotion and Awareness • Cold Chain Leadership

For more about our strategic aims go to the ‘About RWTA’ tab at www.rwta.com.au

46 APRIL 2016 I COLDºRUNNING

[ COMING EVENTS ] QLD Division - Golf Day RWTA (QLD DIVISION) GOLF DAY

Date:

Friday 15th July 2016

Venue:

Brisbane Gold Club Tennyson Memorial Ave, Yeerongpilly QLD 4105

Time: 11:00am

2016

RWTA GO

LF DAY

Agenda: 11.00am Registration & Pre-Game Snacks 12.00pm Shotgun Start (4 Ball ambrose) 3.30pm Finish 3.30-4.30pm Post Game Snacks & Awards Cost: $150.00 for members and non-members. For bookings refer to the RWTA website at www.rwta.com.au Go to www.rwta.com.au/coming-events/ then scroll to find your applicable event and download the attached Registration Form. Please email your completed form to: admin@rwta.com.au or Fax to: (03) 9645 6445.

Date: Venue:

REGISTRATION DETAILS

Friday 15th July 2016 Brisbane Golf Club, Tennyson Memorial Ave, Yeerongp illy QLD 4105 Agenda: 11.00 am Registration and Pre-Game Snacks 12.00 noon Shotgun Start (4 ball ambrose) 3.30 pm Finish 3.30 - 4.30 pm Post Game Snacks & Awards Cost: Members & Non-Members $150.00 (incl GST) Sponsorship: Packages available

Registrant Name __________________ _______________________ Attendees 1____________________________________ Company Name __________________ _______________ __________________________ 2 ___________________________ _____________________ Address ___________________________ ________________________ 3 ___________________________ _____________________ Email Address __________________ ____________________________ 4 ___________________________ _____________________ Contact Tel. No. __________________ ___________________________ 5 ___________________________ _____________________ Qty. ____ x Members @ $150.00 (Incl. GST) = $ _______._____ 6 ___________________________ _____________________ ____ x Non Members @ $150.00 (Incl. GST) = $ _______._____ (NB: If more than 6 attendees are Total $ ____ _._____ registering, please list names and confirm via email message.) PAYMENT OPTIONS A. EFT (Preferred payment) Commonwealth Bank: BSB: 063-101 Acc. No. 10472934 Quote Reference: QLD (Plus Surname or Company Name) For bookings please email this registration form to: admin@rwta.com.au or FAX: 03 9645 6445 For more information Contact: Rachel Corcoran QLD Division Chair Mobile: 0488 900 445 Email: rachel.corcoran@americold .com.au

B. CREDIT CARD (A 2% surcharge applies on all Credit Card payments). Mastercard Visa (Please tick) Credit Card Number

Expiry Date _____ / _____ / _____ CVN No. Name on Card __________________ __________________

__________

Signature ___________________________ _________

______________

RWTA NATIONAL CONFERENCE AND EXHIBITION Date:

Wed 31st - Fri 2nd September 2016

Venue:

Sheraton Grand Mirage Resort, Gold Coast, Queensland

Agenda: Visit Conference Website for Program details www.rwtaconference.com.au Cost: Members: Non Members:

TBA TBA TBA TBA

(Early bird) (Full Fee) (Early Bird) (Full Fee)

For bookings refer to the RWTA website at www.rwtaconference.com.au then go to the ‘Book Now’ tab.

2016 75th RWTA

NATIONAL CONFERENCE AND EXHIBITION

Wed 31st August - Fri 2nd Septem ber 2016 Sheraton Grand Mirage Resort Gold Coast, Queensland Australia

Experience the Gold Coast’s only 5 star beachfront resort when you attend our 75th RWTA Conference & Expo this year at the Sheraton Grand Mirage Resort. The Gold Coast is the perfect location for delegates and their partners to make a holiday out of their time in Queens land. So make sure you put the dates in your diary to join us here. Details will be released shortly contain ing information about Speakers, Social Events, Sponsorship Opportunities and Exhibition Packages. Information and Registration will be available through our Conference Website soon... Exhibitors and Sponsors are encoura ged to contact the Executive Officer – Russell Sturzaker at rsturzaker@rwta.com.a u to discuss your involvement at this stunnin g conference and exhibition venue. An Affiliate Partner of

For more information or for bookings, Please contact Russell Sturzaker Phone: (03) 8620 2802 rsturzaker@rwta.com.au

Would you like to advertise here? For more information Please contact: Russell Sturzaker Phone: (03) 8620 2802 rsturzaker@rwta.com.au COLDºRUNNING I APRIL 2016 47

[ STATE EVENTS ]

ARTIO NSW treasurer Hugh McMaster says it is time RSRT directly spoke to the NSW industry for a better mutual understanding. McMaster said the RSRT’s decision in relation to the Contractor Driver Minimum Payments Road Safety Remuneration Order 2016, which was handed down late last year, will have a significant impact on any hirer who engages contractor drivers in

B 6 FE 201

The briefing was jointly organised by the the Australian Road Transport Industrial Organisation (ARTIO) NSW branch and the Refrigerated Warehouse and Transport Association’s (RWTA) NSW Division.

D N

Road Safety Remuneration Tribunal president Jennifer Acton addressed the breakfast briefing on ‘Road Safety Remuneration Tribunal – Legislative Basis, Operations, and Obligations of Supply Chain Parties’

NSW Breakfast - Road Safety Remuneration Tribunal (RSBT) the long distance and retail sectors. “Subject to specified exclusions, this Order applies to contractual relationships in the private transport industry whenever a hirer engages a contractor driver for a long distance task within the meaning of the Road Transport (Long Distance Operations) Award 2012 and, in the case of the retail distribution sector, any journey, irrespective of distance, involving a retailer with five or more retail outlets,” McMaster said. “This Order imposes a new set of obligations on hirers who engage contractor drivers in these industry sectors.” McMaster said both organisations believe it is very important that hirers understand whether, and how the legislation which governs Orders and other decisions of the RSRT may impose obligations on hirers. As President of the RSRT, Jennifer Acton is responsible under the Road

Safety Remuneration Act 2012 (Cth) for ensuring the RSRT performs its functions of making road safety remuneration orders, approving road transport collective agreements, dealing with certain disputes relating to drivers, their employers or hirers and participants in the supply chain, and conducting research into remuneration related matters that may affect safety in the road transport industry. RWTA would like to thank our event sponsors Volvo and PG Energy.

Guest Speaker Alan Strain addressed the breakfast on the implicatons for business after release of the Trade Union Governance and Corruption Report. The Report listed seventy nine recommendations to improve the governance of trade unions, to improve the management of construction work-sites across the country, and to make unions more transparent and accountable to their members. Alan has significant experience in all aspects of contentious and non-contentious employment law including employment relations, industrial relations and workplace health and safety. RWTA would like to thank event sponsors Labourforce and PG Energy and their presentations on the day.

48 APRIL 2016 I COLDºRUNNING

B 16 FED 20 R 23

QLD Breakfast - Royal Commission into Trade Union Governance and Corruption Report

[ STATE EVENTS ]

SA Breakfast Port Adelaide Football Club

R 6 A 1 MND 20 22

I would like to take this opportunity to introduce myself as the new Chairman for the SA division of the RWTA. My name is Rick Skewes and I am honoured to have been recently selected to represent South Australia in 2016. I am employed as the Logistics Manager for the Adelaide branch of Swire Cold Storage Pty Ltd who have had a long standing partnership with the RWTA. I would like to thank Bill Andary for his contribution as the previous SA Chairman, and in particular the support he has given the RWTA members and guests. Bill is still leading the team and overseeing the association as the state representative. The first breakfast meeting for 2016 was held on March 22nd at the Port Adelaide Football Club. The reason behind the venue selection was to welcome new members and guests of the committee to a unique location. Whilst all members and guests have an association with refrigeration, warehousing and or transport it was particularly exciting to take the time to network and tour a facility of such a high profile organisation. We were extremely fortunate to have Tim Giniver as our guest speaker and tour guide for the morning. In his football career Tim played 314 games for Port Adelaide and was at the heart of the Magpies when they were at their most dominant. Immediately after retiring as a player, he took to coaching - first for the Power in the AFL, then later for his beloved Magpies where he was Head

Rick Skewes addressing SA Breakfast

Port Adeliade Hall of Fame tour with Tim Giniver

Coach for three seasons from 2006 to 2009. Tim is a highly motivational leader in the business and an outstanding spokesman giving the guests of the day an insight into the world of the AFL.

guests, network, relax and enjoy the event. I am confident this was achieved and I would like to take this opportunity to thank those involved in making the first meeting a great success and look forward to an exciting year ahead.

Most importantly the objective of the first meeting was to welcome new

Whether your business is celebrating a milestone anniversary or you’ve had a recent business win, we want to hear about it and we want to share it with your fellow members.

THE TEAM AT THE RWTA WANT TO HEAR FROM

The RWTA wants to celebrate its members’ successes!

To showcase your business win or milestone in Cold Running, call the RWTA’s Executive Officer, Russell Sturzaker on 03 8620 2802 or email: rsturzaker@rwta.com.au

YOU!

COLDºRUNNING I APRIL 2016 49

RWTA National Office & State Division Contact List National Office Russell Sturzaker Executive Officer

Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au

Address: VTA Offices, 50 Wirraway Drive Port Melbourne VIC 3207

Postal Address: PO Box 5, South Melbourne VIC 3205

Anne Thornton Admin Officer

Tel: (03) 8620 2817 Fax: (03) 9645 6445 Email: admin@rwta.com.au

Victorian Division

Chair & State Representative

Greg Lucas

Telephone: (03) 9240 4033 Mobile: 0417 553 065 Email: gregl@ABOxford.com.au

New South Wales Division

Chair & State Representative

Steve Donaldson

Telephone: (02) 9627 9722 Mobile: 0408 280 209 Email: steve@coldlogistics.com.au

Queensland Division Rachel Corcoran Chair & State Representative South Australian Division Rick Skewes Chairman

Telephone: (08) 8343 3234 Mobile: 0429 047 618 Email: rskewes@swirecoldstorage.com.au

Bill Andary State Representative

Telephone: (08) 8304 6000 Mobile: 0413 437 070 Email: bill@auscold.com.au

Western Australian Division

Russell Sturzaker Chair & State Representative

Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au

Tasmanian Division

Russell Sturzaker Chair & State Representative

Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au

Australian Capital Territory

Russell Sturzaker Chair & State Representative

Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au

Northern Territory

Russell Sturzaker Chair & State Representative

Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au

50 APRIL 2016 I COLDºRUNNING

Telephone: (07) 3004 1402 Mobile: 0488 900 445 Email: rachel.corcoran@americold.com.au