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November 2015
MAERSK An evolution in modern shipping
TOP10 questions to ask when
How technology can perfect cold chain logistics
selecting freight forwarding software
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EDITOR’S COMMENT
The triumph of global supply chains HELLO AND WELCOME TO
the November
Issue of Supply Chain Digital. Our cover story this month comes from our exclusive interview with Maersk UK and Ireland, revealing how it is using digital channels to enhance its customer relationships. Allergan heads up our interesting selection of company profiles this month; from relatively humble beginnings, the pharmaceutical company has developed its supply chain to cater for a global customer-base. We explore how home and DIY giant Homebase has strengthened its position in the UK market. This issue also looks at how Atuabo Free Port is poised to become a strategic asset supporting Ghana’s oil and gas industry. Last but not least, we examine British American Tobacco’s leading position in Southern Africa and how the multinational has faced off competition from other players, as well as the illegal tobacco trade.
Enjoy the read, Sam Jermy
Editor
sam.jermy@wdmgroup.com 3
CONTENTS
Features
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TECHNOLOGY
A competitive app-vantage LOGISTICS
How can 3PLs and 4PLs properly implement Cold Chain Logistics?
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6 4
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Top 10 Questions to ask when Selecting Freight Forwarding Software
Company Profiles EUROPE 28 Maersk Line UK & Ireland 58 Allergan 72 Homebase 80 Containerships
AFRICA 90 Atuabo Free Port 100 British American Tobacco 112 Civil Aviation Authority of Uganda
28 Maersk Line UK & Ireland
124 Airports Council International - ACI Africa
80 Containerships
CANADA 130 Canarail
USA 138 SDI
90
Atuabo FreePort
AUSTRALIA
138 SDI
148 UGL
BRAZIL 164 Conlog
LATIN AMERICA 176 CISCO Colombia 192 BASC Colombia
72 Homebase 5
LOGISTICS
How can 3PLs and 4PLs properly implement Cold Chain Logistics? The implementation of cold chain logistics is a bit more complicated than it appears on the surface W R I T T E N B Y: R O N A T A P A T T U P R E S I D E N T & FOUNDER OF OVERSEAS CARGO, INC. (SHIPOCI)
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LOGISTICS IN THE WORLD of modern logistics, the cold supply chain is becoming more prevalent due to the increasing sophistication of not only food and beverages, but pharmaceuticals as well. In order for a 3PL or 4PL to properly implement cold chain logistics, it needs to give careful thought and consideration to both its capabilities and limitations. This involves knowing how to transport temperature sensitive goods and products in a timely and satisfactory matter, whether by air, rail, or truck. For this reason companies looking to implement cold chain logistics need to pay careful attention to industry trends and the specific requirements for the goods they are handling. Risk assessment is key Risk assessment should be the norm for all cold chain activities. If the company can identify points of weakness and put in place SOP and conduct periodic audits, then it will achieve brilliant results. The greater the number of touch points, the greater the risk of cold chain failure. Much of this can be accomplished through a strong management tool, such as software specifically designed 8
November 2015
If a company can identify points of w conduct periodic audits, then it will a for cold supply chain management. Choose the appropriate technology In the logistics industry, technology is one of the most important factors to consider when implementing cold chain logistics because it takes the guesswork out of the equation. According to a survey by Penn State
HOW CAN 3PLS AND 4PLS IMPLEMENT COLD CHAIN LOGISTICS?
weakness and put in place SOP and achieve brilliant results Professor C. John Langley Jr. with the consulting group Capgemini, 75% of shippers said the logistics industry could benefit from better technology. Front-end technology provides un-biased, transparent tracking that is both accurate and timely. Companies should be looking for technology that streamlines, forecasts and simplifies the supply chain process
for faster, uninterrupted service. Hire for skills or properly train your staff One of the biggest mistakes companies make when choosing the appropriate software is the lack of a trained staff that is capable of fully understanding and properly using the system. Businesses need 9
LOGISTICS
When it comes to cold supply chain management, customers are looking for quality and consistency to have in-house skills to manage the variety of items that are being transported each day. For example, it is important to know that ice cream will melt at zero degrees, while refrigerated products and produce require high levels of humidity to stay fresh. In addition, some fruits and vegetables are not compatible when stored or transported in closed environments because one may speed up the decaying process of 10
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the other. Without this knowledge, a “perfect� cold chain may not give the desired results; and therefore, lower customer satisfaction. Another challenge many companies face is keeping this trained staff without any overturn or fluctuation of service. It is important to realize the extreme circumstance an employee has to endure in order to work the cold supply chain. Companies must provide their employees with the
HOW CAN 3PLS AND 4PLS IMPLEMENT COLD CHAIN LOGISTICS?
proper environment and equipment to maintain a civilized level of comfort. This equipment includes proper clothing and gloves, as well as a reasonable schedule that controls the amount of time an employee is exposed to the elements. OSHA standards may not be adequate, so supervisors should pay close attention to employee error ratios and make necessary adjustments to maintain consistency of their cold chain operation. At times productivity has to be sacrificed for quality of service. Customer satisfaction is key When it comes to cold supply chain management, customers are looking for quality and consistency, rather than speed of delivery. Human interaction is necessary to monitor and document that proper benchmarks are hit and When it comes to cold supply chain management, customers are looking for quality and consistency, rather than speed of delivery
that scheduling is maintained. Something to note is that in different countries standards vary and expectations differ. For example, customers in the United States will not buy melted ice cream or soft ice cream, but in many places around the world retail POS predicates customer expectations. In other words, soft ice cream may be the norm. The demand for cold supply chain perfection has transformed over time, and continues to develop. Increases in the sophistication of products- quick serve, ready to eat and pharmaceuticals- have led to more informed customers; and therefore, higher standards. Thus, companies looking to implement cold chain logistics need to evaluate customers, available resources and technology in order to understand their capabilities and restrictions. Many existing companies have developed successful and exemplary cold chain logistics that properly address these issues and continue to modernize the industry as a whole. Experience is king when it comes to tackling the intricacies of a cold chain. Caption to the image
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Top 10 questions to ask when
Selecting Freight Forwarding Software W R I T T E N B Y: E V A N P U Z E Y, C H I E F M A R K ETI N G O F F I C E R , K E W I LL
Kewill shares with Supply Chain Digital the ten pertinent questions you need to be asking when selecting gamechanging technology
TOP 10
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TOP 10 IN TODAY’S increasingly competitive marketplace, the freight forwarding business is under immense pressure to deliver quality services at narrow profit margins. Business managers are expected to stay abreast of the latest regulatory and statutory requirements, and ensure every transaction across the supply chain stays compliant. Many supply chain professionals already know that technology can significantly improve efficiency on the workflow and communication, but finding the right freight forwarding software for the business can be a tricky task on its own. In theory, the same issues affect all businesses involved in the movement and management of goods. But there are some significant differences between moving goods around for a single company and moving goods for many different entities, especially if the business offers value added services. Before signing the contract for any new technology purchase, logistics service provider (LSP) managers must take into consideration the various complexities and interdependencies 14
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that they need to deal with. Here are the 10 useful questions to ask your vendor when choosing a freight forwarding solution. How much experience do you specifically have of working with LSPs? Check that your vendor really understands the differences between the business models, and what they mean in practice.
“Make sure your chosen system will provide the flexibility you need and that you can make necessary tweaks without requiring complicated changes to the product itself.” How will your solution adapt as our business grows? Make sure your chosen vendor has worked through these scenarios with other customers so that you can benefit from their experience, and that its software allows you to create multiple hierarchies and divisions and link up with logistics networks without always needing to call them back in to hard code changes, generating delays and further costs. If you operate in foreign
countries (or plan to in the near future), you need to ensure it is feasible for you to operate on one central system for visibility and not one system per country. Can your solution be configured to suit our business? Make sure your chosen system will provide the flexibility you need and that you can make necessary tweaks without requiring complicated changes to the product itself. 15
TOP 10
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QUESTIONS TO ASK WHEN SELECTING FREIGHT FORWARDING
How quickly will your system allow us to set up new customers, and how easy is it to on-board them? Find out if your operational staff can be easily trained to do this, for example, by configuring/re-configuring workflows or if the process is more complicated – and thus more timeconsuming and expensive.
How will the system handle billing? You want something that can handle the complete order-to-cash process. Most importantly, ask the vendor to give you a detailed breakdown of how the system handles cost and revenue allocation. Does it allow you to identify unprofitable customers and/or lanes?
What degree of customer visibility will the solution enable? Does the solution facilitate a dedicated web portal for each customer (or multiple portals if required), allowing customers to access shipment data and saving both you and the customer time and money by avoiding the need to process information manually and removing risk of error?
How does the solution handle customs compliance? Ask the vendor to detail whether the solution will interface directly with customs or do so via a customs service provider to ensure compliance with ALL of the countries you need. And how easy will it be to comply with the requirements of other countries in the future?
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TOP 10
Which delivery models do you offer? If you want to minimise the resources required to manage and maintain the solution (or focus on your core business while your vendor takes care of your IT) and if it’s important that start-up costs are kept in check, then you should be looking at a cloud-based solution. Conversely, if you have a well-developed IT infrastructure and large multi-country operations, an on-premises model 18
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may be the preferred delivery option for your business. Either way, make sure the vendor has a solid track record of offering and successfully implementing that model. How quickly can I expect to realise benefits from the solution? Ask the vendor to provide you with timelines based on its deployments with other freight forwarders. And do your due diligence by checking
QUESTIONS TO ASK WHEN SELECTING FREIGHT FORWARDING
these out by calling references and speaking to your peers (in another country or region if commercial secrecy is paramount). What can I expect from the service aftercare? Understanding the vendor’s partner network can help you find the knowledge experts in your market. As a result, your business can benefit from best-of-breed solutions, proven integrations to existing enterprise
systems, certified compliance and support for new and innovative services that deliver global agility. There will certainly be other questions to ask depending on your company’s specific circumstances – and as you learn more about a specific system. But these questions form the baseline of what you need to know if you hope to choose the ideal freight forwarding solution for your business.
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TECHNOLOGY
A competitive app-vantage Two industry experts give Supply Chain Digital the inside track on how logistics is looking to leverage mobile technology, specifically apps, and what is best practice in developing these Writ ten by: Parker Stallard and Dan Ward
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October 2014
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TECHNOLOGY
Mobile apps help logistics professionals overcome strategic business challen IN TODAY’S COMPETITIVE marketplace, businesses in every industry are looking for ways to leverage mobile technology to improve business operations and enhance customer satisfaction. The logistics industry is no exception. When created and employed correctly, mobile apps help logistics professionals overcome strategic business challenges, including real-time shipment tracking and improved communications between all parties involved in the process. With the prominence of 22
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smartphones, mobile apps provide an easy, convenient and affordable way to overcome these inherent industry challenges. For decision-makers in the logistics and supply chain industry, the key to leveraging these tools is to understand how mobile apps and technology are changing the industry, and to appreciate the design and development priorities that go into making an effective app. Industry professionals should familiarise themselves with the importance of
S A T E L L IAT EC O NM A VPIEGTAI TT II O VE N AT P EP C -HVNAONLTO AGY E
nges utilising purpose-driven apps instead of feature-led alternatives, and should understand accepted best practices for selecting and vetting app developers. Difference-makers The key to a great mobile logistics app is its combination of accessibility and usability. The best apps in this category offer a seamless user interface that is easy to understand, with design and functionality cues users are familiar with and are widely
recognised as industry best practices. In a post-recessionary world, many companies are operating with less inventory on hand. They are instead relying on a deeper understanding of production timelines and shipment tracking to help coordinate production and delivery. Apps that can provide that insight and allow a range of different users to access comprehensive logistics information through a single, easily accessible source are truly revolutionary. This is very different from traditional 23
TECHNOLOGY
Usage and functionality have to be based on actions and animations that people are familiar with company-specific tracking apps— this is a single portal through which everything can be tracked via mobile. Cost is another advantage for welldesigned logistics apps. With today’s tight margins, any logistics solution has to be affordable and attractive to cost-conscious users. Design and functionality Design and functionality priorities can vary from one company to the next, but logistics organisations should adhere to these universal elements: Easy does it. Using the app has to be easy. It is a simple and logical rule: if an app is easy to use, more people will use it. 24
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Familiarity works. Usage and functionality have to be based on actions and animations that people are familiar with. Incorporate those elements into the design. It just works. The app has to work (every time). It is the same if a customer is ordering something or if you are using an app for tracking and logistics support. It has to work, and it has to work every time. Value added. The app has to provide value. There are other ways of accomplishing the same tasks, but they are cumbersome. The value for the best logistics apps is that they present a lower hurdle for use, and they are powerful, flexible and
A C O M P E T I T I V E A P P - V A N TA G E
convenient. Partners and priorities For decision-makers in the logistics and supply chain industry, the decision to move forward with the design and creation of a proprietary app is just the first step. Based on our experience developing the Badger Freight Tracking app, there are critical decisions to be made, and many layers of due diligence that need to be completed. Here are the key considerations: Look and feel. Look for a designer who prioritises design, user interface and usability. Do they know how to create apps that look and feel good? Apps that are easy-to use and present a sleek, attention-getting appearance will get better use.
Business experience. Be sure to work with smart people who are on the same page as your organisation. The best partners are not just techies, but experienced professionals who understand the business and core logic of your technology goals. Comfort level. Creating an app is a significant investment, so finding an app developer you are comfortable with is essential. No complex project is ever friction free, and you need someone who you can have productive conversations with to resolve issues. Close to home. Because some app developers utilize overseas design teams, determine how important the ability to meet regularly in person with your development team is. For some, in-person design and troubleshooting
“For decision-makers in the logistics and supply chain industry, the key to leveraging these tools is to understand how mobile apps and technology are changing the industry, and to appreciate the design and development priorities that go into making an effective app�’ 25
TECHNOLOGY
Web/hybrid apps are typically easier to manage sessions are invaluable and not subject to compromise. Best practices Once you have a professional partner, the design process can begin in earnest. Because the design and functionality of the app itself will be heavily based on the input that you provide to your app design professionals, it is important to keep some basic principles in mind when 26
November 2015
communicating your needs and priorities. Going native? Determine what kind of tech platform your app will be built on, a native app or a web/hybrid app. Native development utilises languages and tools specifically designed and provided by the platform for developers to work with. They tend to be pricier up front, but they normally provide a greater level of speed, scalability and responsiveness. On the other hand, web/hybrid apps are typically easier to manage from a business standpoint Pain and purpose. The best apps are designed to solve problems. They are created by a design process that is purpose-driven instead of feature-led. Not every great feature has a function. Starting with specific features in mind and trying to make them address your needs will not work. Instead, consider industry and customer pain points—like freight and shipment tracking—and design the app to fix those issues. Everything in the app should have a purpose. Know your audience(s). Consider your audience at every step in the app development process. Large logistics platforms have multiple
S A T E L L IAT EC O NM A VPIEGTAI TT II O VE N AT P EP C -HVNAONLTO AGY E
“When developing the Badger app, we understood the need to work for multiple audiences” groups involved: C-suite executives, drivers, logistics managers and more. When developing the Badger app, we understood the need to work for multiple audiences for multiple functions—all to solve one specific need: better freight tracking capabilities through smartphones. Define success. Define what success means. You likely do not want just downloads, but actual users. To many, success means revenue. If you know what success looks like, the features will fall into place.
Consequently, it is important to have an open mind and be flexible—do not go into the development process with a specific feature in mind. Co-authored by Parker Stallard, founder and CEO of Badger, a logistics data management provider and creators of the Badger Freight Tracking app, and Dan Ward, co-founder of mobile app development firm Detroit Labs—which developed the Badger Freight Tracking app. For more information, visit www.badgersolution. com and www.detroitlabs.com. 27
Evolving to the modern c
o assist customer
Written by Sam Jermy Produced by James Pepper
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MAERSK LINE: UK & IRELAND
This business unit of the multinational conglomerate is using digital channels to offer a modern and convenient service to its customers
The UK is generally two and a half to one in terms of imports and exports
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M
aersk Line, one of the world’s leading container shipping companies, is ensuring it maintains its position as an enabler of trade by investing in its fleet and developing the ecommerce side of its business. Having only started operating out of Great Britain in the 1980s (everything being previously coordinated from headquarters in Denmark) the UK & Ireland unit is still relatively young. Its first direct service from the UK began sailing in 1988, and today roughly 2,000 containers a day pass through British and Irish ports thanks to Maersk Line services. Brian Godsafe, Managing Director of Maersk Line UK & Ireland, said: “With global trade the way it is, the main challenge is to fill the ships. The UK is generally two and a half to one in terms of imports and exports. If you’re a niche carrier you may be able to balance that out on one particular trade, but because we offer global coverage, that ratio applies to us, so we have to send back more empties than we receive when it comes to full containers. “Apart from the imbalance, with the pound being so strong it means the exports get more expensive and that has put more pressure on the exporter. If you’re trading as a shipping company into the UK, you will have to accept that there is going to be an imbalance if you offer global services, that’s just the nature of the trade. You have to build the round-trip into the cost, that’s what all the carriers do.
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thepeople’shaulier Hayward Transport is a long-established and respected, family-run haulage company with a dedication to excellence – proudly labelled “The People’s Haulier”. Working with blue chip shipping and logistics companies, we undertake work for the likes of TK Maxx, Sainsbury’s and Goodyear to name a few. Our flexible, tailored approach and commitment to customer satisfaction when transporting cargo, has earned us an enviable reputation in the haulage industry since the company’s inception in 1919. With a 50-strong fleet of trucks and an array of trailers at our disposal, we are able to respond quickly and efficiently to customers’ needs.
Recognition through accreditations from respected industry bodies underpins our commitment to quality across our organisation. Hayward’s is a committed member of The Freight Operator Recognition Scheme, the industry-led accreditation scheme encouraging sustainable best practice for road freight. We are also an ISO 9001 certified organisation, demonstrating quality management across our facilities, people, training and services. Our passion for excellence also extends to sharing our professional skills and vast knowledge accumulated within the sector, training other commercial drivers at our specialist driving school. We conduct CPC driving courses aimed at ensuring safety and helping to maintain the highest standards of driving on our roads.
WWW.JHAYWARD.CO.UK
OUR CLIENTS
Hayward Transport’s portfolio of operations includes: Container haulage General haulage Low loader/plant movement Tipper haulage Trailer hire CPC driving school
LOCATIONS Hayward Transport Portland Street
t
01922 621417
West Midlands
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01922 642943
WS2 8AD
e
walsalltraffic@jhayward.co.uk
t
01405 861518
East Yorkshire
f
01405 861837
DN14 0DU
e
pollingtontraffic@jhayward.co.uk
Walsall
Hayward Transport Balk Lane Pollington
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thepeople’shaulier
SUPPLIER PROFILE
J HAYWARD & SONS OF WALSALL LTD
At Hayward Transport we have various operations within our portfolio, including: Container haulage,General haulage,Low loader/plant movement,Tipper haulage,Trailer hire and a CPC driver training school. Working with blue chip shipping and logistics companies, we undertake work for the likes of TK Maxx. Don’t hesitate to contact us if you’d like to know more or find out about how our services could benefit your business. Think of us as “The People’s Haulier” – we won’t let you down. Address: Portland Street, Walsall, WS2 8AD Tel: 01922 621417 Fax: 01922 642943 Email: walsalltraffic@jhayward.co.uk Visit our Website: www.jhayward.co.uk
MAERSK LINE: UK & IRELAND (Credit Stephen Waller - Maersk Line
S U P P LY C H A I N
So hopefully you can build up a cost structure which covers both the full containers coming into the UK and part of the repositioning of getting the empty containers back out again.� Godsafe pointed out that in the shipping industry, it is not like airlines or hotels when you can drop the price and hope to create the demand because dropping the price in shipping does not create a demand.
Marchen Maersk, a Triple E, at Port of Flelixstowe. Maersk Line recently placed an order for additional 14,000 TEU vessels
Fleet and ecommerce The Maersk Group, of which Maersk Line is a part, famously owns an impressive range of Triple-Es; one of the largest shipping vessels in the world. These call into the Port of Felixstowe from the Far East. On top of this, Maersk Line recently placed an order for additional 14,000 TEU vessels. w w w. m a e r s k l i n e . c o m
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Paul Barker Commercial Director | Tel 0114 2444 836 Stephen Newell Operations Director | Tel 0114 2444 836
In 1974, Frank Newell and Paul Wright formed Newell & Wright Transport. We were a very small general haulage company, operating from rented premises. Over the following 40 years we have grown substantially in size and work for all major carriers. We operate 100+ vehicles working day and night from two sites. We have a 6.5 acre site in Sheffield which is used for our Workshop, Paint shop, Warehousing and vehicle parking. The second site is a 6 acre Rail Linked site ½ mile away in Rotherham offering container storage, repairs and rail services.
www.newellwright.co.uk traffic@nwtransport.com
SUPPLIER PROFILE
NEWELL & WRIGHT TRANSPORT
Newell & Wright Transport was formed in 1974, in over 40 years we have grown substantially in size and we are now a Specialist in Container Road Haulage. We operate a large fleet which consists of over 100 vehicles. Service and Reliability is a priority to us so we operate 24 hours, running day and night over two shifts significantly reduces the risk of delays. These vehicles operate from two sites, one of which is fully rail linked terminal. We have a large container storage site for loaded and empty containers and also offer all container repairs and maintenance. Address: : Templeborough Depot, Sheffield Road, Sheffield, S9 1RT Tel: 0114 244 4836 Fax: 0114 242 3362 Email: traffic@nwtransport.com Management: Frank Newell – Managing Director Stephen Newell – Operations Director Paul Barker – Commercial Director Website: www.newellwright.co.uk
MAERSK LINE: UK & IRELAND
S U P P LY C H A I N
Godsafe said: “We can actually put them on other trades because the other bigger ships can only be put at this moment in time on the Asia trade route. Not all ports can handle the size of a Triple-E you see, so 14,000 TEU vessels can give us a bit more flexibility and we can move them around depending on demand. “So moving forward we will concentrate on buying the ships which are most economical. Usually, that means that the larger the size the more economical they are. However, often the bigger they are means they can also be less flexible. So I think our strategy going forward will be the same as we are now; we’ll get the most suitable ships, which means a mix of sizes to be honest.” While there have been investments in assets such as the fleet, another area Maersk Line is focusing on in the UK & Ireland is ecommerce. Thanks to my.maerskline.com, its online cargo
Maersk is looking to develop systems and processes to make life easier for customers
Key Personnel
Brian Godsafe Managing Director, UK and Ireland A shipping professional with over thirty years in the industry, Brian became managing director of Maersk Line in the UK and Ireland in 2011. Prior to that, he held senior leadership roles in customer service and trade for the business, and was managing director and commercial manager of Safmarine UK. As managing director, he is responsible for Maersk Line’s commercial activity in the UK and Ireland, covering both the Maersk Line and Safmarine brands, with over 200 employees based in offices in Liverpool, Birmingham, Dublin and Felixstowe.
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• Contract hi • Container t • A new fleet • ADR trained
Express Freight the most versati in customer serv turn has enabled standards of exc
T +44 (0) 137 F +44 (0) 137
Express Fre
SERVICES (UK) LIMITED
ire transport t under 3 years d and courteous drivers
• Fully managed and operated • Rates to suit all businesses • GPS tracked for added security with full access for you or your customers
Services (UK) Ltd has been established for over 40 years and has proved to be one of ile and flexible road transport operators in the industry. We have raised the bench mark vices by giving each customer a bespoke service tailored to individual needs, this in d our customers to maintain their own service targets and client base. We are driven to cellence throughout our organisation, which is reflected in the service we offer.
75 488730 75 488759
customerservices@efs-uk.com www.efs-uk.com
eight Services (UK) Ltd, Armada House, Tilbury Freeport,Tilbury, Essex RM18 7ET
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EXPRESS FREIGHT SERVICES (UK) LTD SERVICES (UK) LIMITED
At Express Freight Services (UK) Ltd we offer a service package tailored to your needs, whether it is one movement or a thousand the level of service you will receive we be to the same exacting standards. We have in place state of the art computer systems to process your orders and to allow you to access your POD’s and Interchanges as and when required. The ethos within the company is ‘can do’, which enables us to respond promptly to any problems you may encounter and we will advise you of the best way to resolve any issues. This attitude to our business has enabled us to build very strong relationships with our customer base. We operate a modern fleet in excess of 75 vehicles from all the major UK ports, covering 365 days a year day and night to all customers alike. The fleet which is fully maintained by main dealers and consists of all 44 ton tractor units with a variety of trailer combinations to suit all requirements. All of our own vehicles have GPS tracking fitted which is available to any customer.
MAERSK LINE: UK & IRELAND
S U P P LY C H A I N
booking platform, the company is aiming to make it as easy as possible for customers to book, track and manage their cargo with Maersk Line. Godsafe envisages a time where shipping can one day be as easy as booking a flight to go on holiday, and although he appreciates it is a more complex business, the transactional side should be just as easy to navigate. He said: “We don’t want to become faceless, but we want to spend our time in front of the customer on what they’re doing next, how they are developing and so on. What we’re really doing is facilitating business, we are the middleman transporting goods between buyer and seller. “We want to develop systems and processes that makes it easier for our customer to do business with us. If we can sit down and talk
Godsafe envisages a time where shipping can one day be as easy as booking a flight to go on holiday
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Faster Easier
From Ship
To Port
To Truck Or Train
SUPPLIER PROFILE
DP WORLD LONDON GATEWAY
Collecting containers from a port terminal has never been as quick, easy and simple as it is at DP World London Gateway Port. Cargo can be ready for collection quickly after being discharged from a vessel, providing it has all the necessary customs clearances. As soon as a container is moved by the terminal’s wind resistant cranes into the stack, hauliers can book one of hundreds of collection slots available every hour to fit their logistics needs. And to speed things up even further for the modern supply chain professional, we make sure containers are ready for the driver’s arrival if booked in advance. This means quick and efficient collection and no wasted haulage time in supply chains. This is how DP World London Gateway Port is able to consistently offer gate-to-gate truck turnaround times of under 35 minutes, giving supply chain professionals a faster and easier port experience than ever before. Address: No.1 London Gateway, Stanford-le-Hope, Essex, SS17 9DY Tel: 01375 648300 Email: enquiries@londongateway.com Visit our Website: www.londongateway.com
MAERSK LINE: UK & IRELAND
S U P P LY C H A I N
to people about their business it gives us a greater understanding where we need to invest but hopefully we can then innovate together and come up with new ideas to see how we can help push businesses on.” Customer charter Underpinning the investment in ecommerce is the idea that customers should have the most modern, agreeable service Maersk Line can offer, backed up by a friendly website and positive user experience. An innovative way that the company is self-evaluating itself is through the Customer Charter, where through customer feedback, users have given Maersk Line eight areas the group should be measuring. Over time this charter has been evolving through ongoing evaluation and feedback from stakeholders. The current eight measurements are: Invoicing, Booking confirmation, Accessibility, Documentation Accuracy and Amendments, Issue Resolution, Pre-Arrival Notification, Dispute Resolution and Customer Commitment. Godsafe said: “It’s taken us some time but we’re now at the point where we can actually produce the Customer Charter for individual customers and how these eight measurements will impact them specifically. “In the world we live in that’s quite some step forward. These are items they have said they want measured, which was something the wider industry didn’t measure.”
An innovative way that the company is self-evaluating itself is through the Customer Charter
“In the world we live in that’s quite some step forward. These are items they have said they want measured, which was something the wider industry didn’t measure.” – Brian Godsafe. Managing Director
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PORT OF FELIXSTOWE THE PORT OF BRITAIN
Tel +44 1394 604 500 Email enquiries@fdrc.co.uk
The Port
t of Felixstowe Tomline House The Dock Felixstowe IP11 3SY UK
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SUPPLIER PROFILE
FELIXSTOWE THE PORT OF BRITAIN
ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THEE ENVIRONMENT BEST FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY T BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THEE BEST BEST BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY 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EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THEE ENVIRONMENT BEST FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY T BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THEE BEST BEST BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE XCELLENCE BES ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR TH HE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THEE ENVIRONMENT BEST FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY T BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THEE BEST BEST BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE BEST FOR THE ENVIRONMENT BEST FOR THE FUTURE BACKED BY THE BEST BEST LOCATED BEST CONNECTED BEST IN OPERATIONAL EXCELLENCE
THE PORT OF FELIXSTOWE
The Port of Felixstowe, known as the Port of Britain, is the UK’s busiest container port, handling approximately 4 million TEUs a year; over 40% of the UK’s containerised trade. VISIT Closest to the main shipping Lanes and the ports of Northern Europe, PORTOFBRITAIN.CO.UK Felixstowe is ideally placed for all major shipping services. Over 3km of quayside and 36 ship-to-shore cranes service the world’s largest container vessels with minimum deviation or delay. Development of Berths 8&9 made Felixstowe the first UK port capable of handling the next generation ultra-large container ships and it remains the clear port of choice for these giant vessels.
Felixstowe enjoys first-class road, rail and coastal feeder connections to all parts of the UK. It has the largest intermodal rail terminal in the country, with 62 daily arrivals or departures each day connecting the port with the UK’s industrial heartlands. Felixstowe also provides direct access to the strategic road network linking it with all major distribution centres. The Port of Felixstowe is part of the Hutchison Ports group, the world’s leading port investor, developer and operator. Address: The Port of Felixstowe, Tomline House, The Dock, Felixstowe, IP11 3SY Telephone: +44 1394 604 500 Email: enquiries@fdrc.co.uk Visit our website: Portofbritain.co.uk
MAERSK LINE: UK & IRELAND
S U P P LY C H A I N
Sustainability Another example of helping customers to understand the impact of shipping on their business is Maersk Line’s efforts at being more sustainable. Container shipping, despite its significant impact on the environment, is also one of the more environmentally efficient methods of transportation, due to its economies of scale. One example can be the carbon footprint statistics in shipping. Aberdeen Angus beef sold in London can have a higher carbon footprint that that of Argentinian beef being shipped across. It’s a surprising fact, and many statistics like this are not displayed in the public forum. As such, these sustainability factors currently does not influence the customer’s purchasing decisions, but Godsafe believes it will do in the future.
32k Number of staff employed by Maersk UK and Ireland
The charter has been evolving through ongoing evaluation and feedback from stakeholders
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MAERSK LINE: UK & IRELAND
The UK’s leading intermodal rail freight operator
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Corporate social responsibility has always been important to Maersk Line, and that goes beyond purchasing the most economical vessels. It is also about what the firm can do to help the environment. Over the past decade, Maersk Line has pushed the envelope for energy efficiency and CO2 reductions. Today, it has reduced its relative emissions by 40 percent and is on average more than 10 percent ahead of the rest of the industry according to global benchmarks. It has also set a bold new target to reduce carbon emissions per container moved by 60 percent by 2020 compared to levels from 2007. As well as low impact shipping, the company also utilises rail freight up and down the length and breadth of the country. It is a vital
Container shipping, despite its significant impact on the environment, is also one of the more environmentally efficient methods of transportation
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MAERSK LINE: UK & IRELAND Our customers come first With an emphasis on forging strong and lasting partnerships, we support customers at every stage along the supply chain, reducing complexity while always adding value. From the management of inbound suppliers and container shipments through to transformational change, e-fulfilment and home delivery, we will find the potential within your supply chain to add value to your business and deliver award winning customer service.
Why not talk to Wincanton...?
Call 0844 3350502 or go to www.wincanton.co.uk
BUILDING ON OUR CONNECTIONS London Container Terminal with its unique combination of Deep Sea and European trades at the same facility is expanding its connections – with greater volume, more shipping lines and more shippers than ever before. We serve every area in the World: from South America and Africa through to Europe and Australasia. Our new major warehousing and chilled developments in and around the port means that our portcentric connections simply get stronger.
London Container Terminal (Tilbury) t: 0044 (0)1375 363 700 e: info@londoncontainerterminal.co.uk www.londoncontainerterminal.co.uk
“We have bespoke arrangements with many of the retailers around getting their cargo straight to the Distribution Centres. We deal with all the major retailers …you name them, we’ve dealt with them.” – Brian Godsafe. Managing Director
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MAERSK LINE: UK & IRELAND
S U P P LY C H A I N
component to multimodal transport of the containers, and Maersk Line attempts to use rail as much as possible thanks to the favourable cost and environmental considerations. “We’re very involved in the movement in containers. We have bespoke arrangements with many of the retailers around getting their cargo straight to the Distribution Centres. We deal with all the major retailers …you name them, we’ve dealt with them.” said Godsafe. Looking into the future aspirations of the UK & Ireland business unit, Godsafe reiterated that growth and revenue generally comes from the imports and not the exports, and that Britain is not producing much as a country anymore. He said: “From what we ship out of this country, over 50 percent is scrap; waste paper and the
Growth and revenue generally comes from the imports and not the exports
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MAERSK LINE: UK & IRELAND
“Through ecommerce, a sustainable approach to business and knowing where trade is developing, Maersk Line is well positioned to remain a crucial element of the supply chain for businesses shipping to or from the UK and Ireland” – Brian Godsafe, Managing Director 56
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like. If you take cars away, only 30 percent of our exports are manufactured goods from within the UK. I can’t see the export situation changing. We have to follow where the trade is actually improving or increasing. We’ve been doing that in China in recent years with their double digit growth but of course that is now slowing down. “We want to be present in the developing areas. Just look in Asia where they’re losing some of the manufacturing business from mainland China to the likes of Vietnam, Cambodia and so on. If you look at an automotive company based in England like Nissan it’s an excellent example because it really has bucked the trend of a lot of manufacturers in the UK. It managed to internally keep the cost structure low and
S U P P LY C H A I N
Company Information INDUSTRY
Container Shipping HEADQUARTERS
Copenhagen, Denmark EMPLOYEES
32,000 REVENUE
$27bn USD
the productivity high. It is actually competing internally against Nissan companies in India and China and saying to its bosses we can produce different models of cars here in the UK. “It has actually been getting brand new contracts and being given the manufacturing for the new Nissan Leaf electric car. It’s a great example of a good British manufacturer. So any success story like that we are hopeful to carry on being involved.” So there you have it – through ecommerce, a sustainable approach to business and knowing where trade is developing, Maersk Line is well positioned to remain a crucial element of the supply chain for businesses shipping to or from the UK and Ireland.
PRODUCTS/ SERVICES
Container Shipping
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ALLERGAN
implements control tower solution to aid its rapid business growth, a full 180째 transformation in three years Written by: Sheree Hanna Produced by: Richard Durrant
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ALLERGAN
One of the world’s leading pharmaceutical companies has undergone a major logistics’ transformation as it has grown exponentially through acquisition
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llergan PLC, one of the largest pharmaceutical companies in the world, has undergone a metamorphosis of behemoth proportions in the past three years which has necessitated a major overhaul of its logistics operation. In March this year, Allergan was acquired by NYSE-listed Actavis creating a $23 billion diversified global pharmaceutical company and a leader in the new industry model, Growth Pharma. The deal brought together businesses now extending across 100 countries boasting more than 40 manufacturing plants. Allergan has a brand portfolio featuring seven blockbuster franchises in key therapeutic categories including: Dermatology and Aesthetics, Eye Care and Women’s Health and Urology, while it’s Generics portfolio comprises more than 1,000 generics, branded generics, established brands and OTC products and is the third largest generic manufacturer in the US. Just three months after conclusion of the Allergan deal, the emerging butterfly is shedding it skin with the announcement that Israeli company Teva Pharmaceuticals Industries Ltd has agreed to purchase Allergan’s Generics portfolio in a transaction valued at $40.5 billion. Val Pétursson, Allergan’s Managing Director of International Logistics, said: “Teva’s offer was simply too good to refuse and the company made the strategic decision to focus on branded products.”
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Part of the company is focused on developing new medicines
GLOBAL STRATEGY Historically, the business has been strongly focused on the production of generic drugs but more recently has been building its branded portfolio with and growing its business through seven branded therapeutic areas of focus. New Allergan is focused on developing new medicines that address unmet medical needs in critical therapeutic areas as well as increasing access to high-quality affordable medicines. This year the company has invested significantly in Research & Development focusing on developing innovative and durable valueenhancing products within brands, generics, biologics and OTC (Over the Counter) portfolios. The massive growth of the company through its acquisitive nature meant that while it was
32k Number of staff employed by Allergan
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very good at integrating new businesses, it also needed to focus on developing and implementing a globally-organised logistics’ strategy. Hence, Pétursson’s appoint in December, 2012. He said: “When I arrived, the company had gone through tremendous change, and there was a critical need for a strong, globally coordinated logistics approach. There was limited visibility on how supply chains were operating. In short logistics was an opportunity for us to improve the way we would do business with our customers going forward.” “The strategic focus was set on a fast deployable global solution that could be easily scaled in the upcoming years. With the company growing from around $5 billion annual revenue to $23 billion revenue within 3 years the term
SUPPLIER PROFILE
Logistics offered a way to make big improvements operated
AGILITY MANAGEMENT LTD
From its roots in emerging markets, Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed countries and emerging economies alike. A publicly traded company, Agility is one of the world’s leading providers of integrated logistics with over $4.8 billion in annual revenue and 20,000 employees in over 500 offices across 100 countries. Agility’s solutions meet the unique requirements of the pharmaceutical industry by providing a range of services, including; cold-chain solutions, storage in multiple temperature zones, advanced tracking and tracing technologies, and reverse logistics which ensure total supply chain visibility and reporting on merchandise flows across all modes of transport.
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Key Personnel
Val Petursson Managing Director of International Logistics Val is a Supply Chain executive, with 16 years background role within different stages of supply chain processes, thereof nine years in Supply Chain roles for medium and large multi-national organizations within the Pharma and the Medical sector. He is a strong people manager and a keen people reader with a true balance of hard and soft skills. He graduated in 1996 with BA in Languages and 2003 with an MBA from Reykjavik University.
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scalability was stretched to the limit, but we always managed to integrate the new companies in to the solution at the pace needed.” It soon became apparent to Pétursson there were three options for establishing coherent and viable logistics’ solutions. The first was for Allergan (then Actavis) to establish its own control tower with in house IT development, the second was to outsource full logistical control to specialized Logistic Solution Provides (4PL solution) and the third was the hybrid solution he opted for. “In retrospect I believe the hybrid was truly the only right solution for us as both other options would have been either too cumbersome to deploy or not scalable enough.” Allergan’s international headquarters is in Switzerland, while its Global headquarters are in Dublin. Administrative headquarters are in Parsippany NJ. CONTROL TOWER He said: “We are not a logistics company we are a pharmaceutical company, and we needed to leverage our strengths and work with others who could provide us the services and support we needed. That’s why we decided to work with an IT solutions partner to tailor a program to meet our needs to better deliver for our customers.” Pétursson shopped around for a control tower solution provider and subsequently teamed up with the global forwarding company. Agility which operates the control tower from its Bristol branch
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Allergan has 40 sites and 200 third-party manufacturers
using a single, strategic platform and a unified data set. In the last three years the relationship has developed to a true win-win partnership, resulting in a world class pharma-logistic solution. With Allergan’s 2,300 shipping lanes operating globally, the single platform control tower solution enables the business to have visibility on every single shipment and provide excellent top down business intelligence for strategic and tactical improvements over the entire network It provides Pétursson and his -strong global logistic teams all around the world exact information on myriad of things including expenditure thus enabling a more cost-effective and efficient system
“We are able to send push alerts to all of our markets” – Val Petursson, Managing Director
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Temperature And Location Monitoring The Controlant Supply Chain Monitoring solutions monitor and alarm excursions in temperature as well as location, shipping routes and delivery times. All information is automatically gathered on the centralized data cloud for on demand or automated reporting. In addition to fulfilling the strictest quality requirements for temperature monitoring, data analysis can help optimize the logistic side of your business and contribute to reducing lead time. Reports are automatically sent via email once a shipment arrives at destination. The web based user interface can be accessed at any time, any device and any location.
Benefits • Shipment history overview • Full control of goods • Regulatory fulfillment Features • Wireless real time alerts • Automated reports • Web based overview
Tel + 354 517 0630 Fax +354 517 0637 Email sales@controlant.com Web www.controlant.com
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bringing direct benefits to customers. The control tower facilitates an on-line portal through which all freight movements are booked and monitored irrespective of where they are in the world, enabling a much better control and proactive alert management. “We have around 40 sites and 200 third-party manufacturers and all of their shipments get booked in the same way. On top of the cost visibility, we now have high level and low level visibility on service performances of all our carriers, in to all markets, as well as container and truck utilization. We are able to send push alerts to all of our markets in case of delays or other problems. It furthermore enables us to bring better strategic solutions to the table for our customers in terms of service or cost improvements said PĂŠtursson.
Allergan is one of the largest pharmaceutical companies in the world
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“We are a very demanding customer when it comes to temperature controlled solutions” – Val Petursson, Managing Director
GOOD PRACTICES Another extremely important facet of the logistics transformation has been its strict adherence to the Good Distribution Practice and ensuring product quality for its customers. The ever more rigid growing GDP guidelines require that medicines obtained from the licensed manufacturer are consistently stored, transported and handled under suitable conditions as required by the MA (Medical Association). According to Pétursson, Allergan has played a leading role when pushing for and piloting new solutions to ensure better and safer transport of pharmaceutical goods, he said: “We are a
PHARMACEUTICAL TEMPERATURE CONTROL PACKAGING SYSTEMS Softbox is proud to maintain the Cold Chain for more than half the world's top 50 Pharma companies When you need cost effective temperature control packaging to mitigate the risk of temperature excursion, our extensive range of engineered packaging systems has been designed and qualified to ensure you can ship your cold chain products with confidence.
T +44 1844 203 560 F +44 1844 203 570 info@softboxsystems.com www.softboxsystems.com
Softbox Systems Ltd. • Units 1-2 Ridgeway • Drakes Drive • Long Crendon • Buckinghamshire • HP18 9BF
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very demanding customer when it comes to temperature controlled solutions and other aspects of the supply chain that are critical in providing, safe, reliable transport of our medicines to our customers and their patients around the world. We have collaborated with leading manufacturers for some time now and in some cases pushed them towards better and smarter solutions.” “For a year we have been piloting new technology on temperature monitoring devices, currently a very promising real time data logger solution now using GPRS technology. Our aspiration is to be the first major pharmaceutical company able to deploy this technology on all our vital and/or sensitive shipments globally.” “The real time data loggers can tell at any given time the cargo’s condition, so for example, it can transmit data relating to the rise and fall of temperature critical for some medicines and allows my team and my customer within the 60 markets we serve to know precisely where cargo is from stock to customer and proactively act on incoming risks.” “Being able to mitigate temperature excursion will add massive cost advantage to our supply chain in the upcoming years as it drives out a lot of operational waste for our quality and supply chain teams, while it adds greatly to product safety. It is also extremely effective in diversion and theft control.” “Allergan has been working with Icelandic industry leading specialist on temperature monitoring devices,
Allergan is piloting new technology
$28bn Revenue generated by Allergan in 2015
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ALLERGAN
Allergan is collaborating with a specialist packaging company
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a company called, Controlant. There are many good solutions out there but Controlant has been extremely good in bringing in and deploying new technologies, first the RFID (Wireless) tracing technology, and now real time technology, to help us monitor a product’s transit through the supply chain – from manufacturer to customer and then to patient.” “Allergan is one of the first companies in the pharma sector to use this technology on this scale, which until recently was very expensive. Now it is becoming affordable and bringing us extremely good results. I do believe that the industry will move more and more in to real time monitoring solutions in general.” “Another critical aspect of the secure pharma supply chain is the right investment when it comes to temperature packaging. We have
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for years spent significant amounts on secure packaging, are proactively collaborating with the specialist packaging company Softbox Solutions to develop the very best packaging for our products irrespective of its nature and sensivity”
Company Information INDUSTRY
Pharmaceutical
QUALITY DELIVERIES Allergan’s development and growth of its more complex generics and branded products has spearheaded the drive towards adopting temperature controlled packaging systems. The most frequently used products from Softbox is a unit which can keep Allergan’s products at the right temperature for five days, during Air transit “Our products often have to travel vast distances through many different climate zones and it’s crucial that they are kept at the right temperature while in transit,” explained Petursson. “We are very happy to have partners such as Controlant and Softbox as it is a win-win situation for us all.” The Teva’s acquisition of Allergan’s generics business will mean that the two logistic systems now in place will be merged in one. Pétursson said: “It is a very dynamic world and since I arrived here things have changed so fast, merging the systems will be an exciting and enormous task. Prior to the announcement there was some sharing of good practices between the two companies and it will continue now on a much more detailed level where we will undoubtedly merge the better of the two worlds in what is to become perhaps the largest pharma logistic network in the world.”
HEADQUARTERS
Irvine, California, United States FOUNDED
1990 (As Watson Pharmaceuticals) EMPLOYEES
32,000 REVENUE
$ 28bn USD (2015) PRODUCTS/ SERVICES
Production of branded and generic medicines
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HOMEBASE: IMPLEMEN IN FACE OF CHANGING R Written by: Sam Jermy Produced by: Richard Durrant
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HOMEBASE
The changing retail landscape and growth of online sales has led Homebase to transform its supply chain strategy in order to thrive as a multichannel retailer.
Horsham store home area
H Chris Warn, Head of Supply Chain at Homebase
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omebase is implementing a more attentive supply chain strategy and in particular a rigorous stock transformation programme, in order to thrive as a multichannel retailer. The company, which is part of the wider Home Retail Group alongside other famous British brands such as Argos and Habitat, has admittedly reduced the number of its physical stores. But the company stressed this is not due to poor performance. In fact, Homebase has seen the percentage of online sales grow and they are building an infrastructure to support a sizeable increase in its total participation.
This has necessitated a change in the current operation and as a result customers can order a product online which then gets directly delivered from the distribution centre without the need for a retail store involvement at any point in the journey. Chris Warn, Head of Supply Chain at Homebase, said: “It’s a rapidly changing retail landscape in terms of customers’ behaviours and expectations. I think they’re very much in a space of wanting to buy what they want, when they want it, from wherever they want it, expecting to have it delivered to wherever they want it. This is obviously changing significantly
“Stores are still very important to us, but they’re increasingly becoming a place to create inspiration and desire for our customers” –C hris Warn, Head of Supply Chain at Homebase
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HOMEBASE
17k Number of staff employed by Homebase
from the traditional bricks and mortar type model that stood unchanged for so long in the past. “Stores are still very important to us, but they’re increasingly becoming a place to create inspiration and desire for our customers.” The convenience factor of browsing and ordering anywhere at any time means the desire from customers to shop online is greater than ever and is only going to grow. Strategic management Aside from its online ambitions, the company is also asking itself what else it can do in its remaining stores to remain attractive
Makes A Difference. The family-owned company Kärcher is today the world's leading provider of efficient, resource-conserving cleaning systems. Kärcher makes a difference through top performance, innovation and quality.
+44 1295 752 000 • enquiries@karcher.co.uk www.kaercher.com/uk
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Homebase’s stores are central to its customers’ retail experience
to the modern day customer. So far, there are 80 Argos and 50 Habitat concessions inserted into existing Homebase stores. Warn said: “It’s all about making the space more appealing for the customer. There’s even been an introduction of coffee shops inside Homebase as well, so the overall customer experience is changing all the time. “The stores still play a massive part. People like to come in to sample and test paint, get some doors cut, find the right nails, bolts and screws for a DIY job and so on. But people’s habits are changing all the time; it’s a much different landscape than it was a decade ago.” Stock transformation Benefits of the new supply chain initiative and
Bedford store display
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HOMEBASE
In Store inspiration area
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subsequent stock transformation program includes the fact it allows reinvestment, as better inventory planning means increased optimisation of stock. This then frees up capital as opposed to having a push methodology which can mean stock lying on shelves. Warn said: “Here at Homebase our supply chain operations are a critical function to improve the overall business performance and customer satisfaction, not just a question of how many lorries you have! It’s allowing us to do things very differently – such as a ‘little and often’ mentality on store replenishment. “The majority of our stock transformation
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“We want to increase the range available instore for customers. We have a vision of having 40,000 SKUs available to customers”
Company Information INDUSTRY
– Chris Warn, Head of Supply Chain at Homebase
Retail and Home Improvement
program is driven from the store closures, but the rest is coming from being leaner, more agile in our supply chain and adopting alternative ways or working, such as being even more focused on efficient stock management whilst increasing the availability for the customer in all channels of fulfilment. “We’ll also be selling more from the DC as opposed to from the store so there’ll be more direct deliveries and more click-and-collect in store.”
HEADQUARTERS
Milton Keynes, UK FOUNDED
1979 EMPLOYEES
17,000 REVENUE
£1.5billion
Digital future Alongside the focus on increasing online participation, in the next three years the company wants customers to be highly satisfied with stock availability across all channels. A new Homebase app has also been launched for tablets and mobile devices, and this has been downloaded by millions of customers already. Warn concluded: “Essentially it’s about how we can leverage our existing infrastructure better to develop new strategies and be more reactive and driven as we go into an ever-changing digital landscape.”
PRODUCTS/ SERVICES
Homebase is a leading home and garden enhancement retailer selling around 38,000 products.
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Containerships:
Investing â‚Ź300M To Upgrade Operations Written by: Sam Jermy Produced by: Richard Durrant
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C O N TA I N E R S H I P S
The familyowned container shipping business from Finland has decided to replace its old vessels and trucks in response to new energy consumption regulations
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ontainerships is embarking on a â‚Ź300 million journey in order to replace its land and sea vehicles over the next two years, meaning the business will achieve pleasing energy-saving results at the same time as increasing container capacity by 70 percent. Headquartered in Helsinki, Finland, since 1966, the company has gone from strength to strength in recent years and now has a presence in 21 countries, with 20 of its own offices which house its 550 employees. It caters to service customers needing to ensure safe and rapid door-to-door container shipping between Russia and the Baltic, Europe, the UK, Ireland and the North Sea, as well as between North Africa and the Mediterranean. With approximately 13 vessels in operation, its own truck fleet in Finland, Russia and the UK as well as 15,000 containers, Containerships offers customers a wide range of choice for all standard and special container sorts and complete coverage using sea, road, rail and river container transportation. Antti Laukkanen, Group Land Operations Director, said: “We’re logistics specialists in Europe and parts of North Africa, we calculate how goods can best be routed in the most environmentally friendly manner. With this in mind and in the face of new regulations in the Baltic, we are in the process of a multi-million euro project to replace the entire fleet of our sea vessels. We purchased these from China, the first of which
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Rapid container shipping
is set to arrive in early 2016 and they will all be powered by LNG (liquefied natural gas) fuel. “Three or four years ago logistics companies had a big challenge in Northern Europe surrounding legislation around energy consumption in the Baltic and North Seas where a sulphur emission control area (SECA) was put into force. The environmental regulations are set by the International Maritime Organisation and came into force on 1 January 2015. We did a strategic analysis of all available data, assessed all options and it was subsequently decided we would go for LNG fuel for our fleet.�
550
Number of staff employed by Containerships
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On track to environmental compliance
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Operations Considering that Containerships’ annual turnover is €220 million, the €300 million investment to possess more environmentally friendly vehicles is a substantial one to say the least. But as Baltic and North Sea vessel operators must find an energy source that contains no more than 0.1 percent sulphur against the previous target of one percent, Laukkanen sees it as one that was necessary. He said: “This investment project improves our vessel efficiency not only by
EUROPE
exceeding all known future environmental regulations but it has simultaneously increased the capacity meaning we maintain competitiveness in the shipping industry. “Within that investment, we’ll also be converting the road trucks to run on LNG and purchasing additional containers in anticipation of more cargo and therefore more customers on board. One by one we are letting go of these older conventional vessels. But at the same time this is a long-term investment that has also seen us reduce our carbon footprint by 25 percent, which we’re really pleased about. “So now we have the capacity, we have the energy efficiency, and we have the agility. Because we are still a fairly manageable size, we are able to offer one night deliveries which is obviously hugely beneficial to the customer.” Some major customers and partners include consumer goods companies such as Proctor & Gamble and Unilever, as well as famous Scotch whisky brands from Diageo. Containerships also transports a considerable amount of IKEA products within Northern European regions. Most of these products are being exported from Western Europe into Russia, and the company is able to handle everything from customs clearance of import and export cargo and the paperwork for reimport procedures for arrival and/or departure by sea or truck. Another added benefit is the fact there are no third parties involved for any of these companies.
“This investment project improves our vessel efficiency not only by exceeding all known future environmental regulations but it has simultaneously increased the capacity meaning we maintain competitiveness in the shipping industry” – Antti Laukkanen, Group Land Operations Director
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51 years serving industry
Established 1964
PROUD PARTNER ON THE IRISH SEA FOR CONTAINERSHIPS.
Kilgrange Ltd T/A
M
hon cMa
Transport & Wareh
ous
ing
MARKET LEADER IN DOOR TO DOOR AND FEEDER CONTAINER SHIPPING BETWEEN IRELAND AND THE CONTINENT.
Big Enough To Cope Small Enough To Care
From Ireland to Benelux, Germany, France, Switzerland, Austria, Italy, Eastern Europe and back. • DUBLIN Tel: 01 607 5555 Fax: 01 855 2280
• ROTTERDAM Tel: 010 428 3700 Fax: 010 429 0607
• BELFAST Tel: 048 905 33200 Fax: 048 905 33222
• ANTWERP Tel: 03 221 2110 Fax: 03 231 1030
• CORK Tel: 021 450 4000 Fax: 021 450 4217
At Mc Mahon Transport and Warehousing we are a family run business. We are very proud to be Irelands designated haulage partner for containerships over the last 10 years. Tel 00 353 (1) 836 4344 Fax 00 353 (1) 836 4230 michael.mcmahon71@gmail.com mark@mcmahontransport.ie Unit 205 B • Castleforbes Business Park • Dublin 1
Irish Exporters Association Short Sea Shipping Line of the Year Award 2013
www.eucon.ie
www.clearpack.com uaesales@clearpack.com
The Clear Choice for Packaging Primary Packaging Secondary Packaging Case Packing and Shrink Wrapping
Shipping Is A Matter Of Trust
Palletizers Conveyors and Turnkey Packaging
Tel +49 40 377 07 91-60 Fax +49 40 377 07 91-89 info@nordic-hamburg.de www.nordic-hamburg.de
Palletizer
Singapore (HQ)
The Nordic Hamburg Group´s objective is to accomplish long-term successful shipping projects from the initial project development phase, through rigid project management, financing and excellence in ship management.
China | India | Indonesia | Malaysia | Philippines | Italy Saudi Arabia | Switzerland | Thailand | UAE | Vietnam
Nordic Hamburg | Shipmanagement GmbH & Co. KG Cremon 32 | 20457 Hamburg, Germany
C O N TA I N E R S H I P S
EUROPE
The group is preparing for increased volumes
Strategy From a technology point of view, Containerships is investing in the vessels and the trucks, which is an imbedded investment of LNG and technology. The technology aspect of the investment includes brand new tanks on the ships, as well as cooling systems which will make a very positive impact. From the IT and operating systems point of view the group is developing these components all the time in such a way that allows the firm to cope in this new age of increased volumes. But this relentless push forward is not without its challenges, and although Laukkanen acknowledges this and remains vigilant to adversity, he remains confident this will not overtly affect the business. He said: “Russia is and will continue to be an important market for us and we all know there is an ongoing crisis at the moment. But we think in terms of
“So now we have the capacity, we have the energy efficiency, and we have the agility” – Antti Laukkanen
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Containerships is a multimodal operator
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transporting consumer goods, automotive parts and alcohol from other European countries such as the UK, France and Germany; there is still a big future growth opportunity there. “Of course the sanctions have affected us to an extent, but the direct impact hasn’t been that huge. The bigger impact has been the Russian economy slowing down and decreased spending habits. The normal levels of customer consumption are down - that is having the larger impact on us. “Our company and owners have been working in Russia since 1990 though and we have faced crises before, with recessions and so on. It’s not a new thing for us and so essentially so
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we have not run into Russia only to step out during the bad times, we have already been present in here for many years so we are not going to back away now. It’s a long-term focus and investment, and we’re confident it will continue to be fruitful in years to come.” Looking forward, Laukkanen is planning on providing a much more tailored service to the individual customer, as there seems to be a demand for this approach. With facilities and containers in every major European port, and container depots and warehouses in the UK and Germany, Containerships is well positioned to offer a more customer-centric service. He concluded: “We have certain core ports like Helsinki, St Petersburg, Teesport, Rotterdam, Lübeck where we call to often and depending on the situation market and customer location, we are adding some new ports to our portfolio to increase our scope of presence. “There are a certain amount of containers in each port so when there is transportation demand from the customer we are able to answer on a fairly quick basis. “It’s always difficult to predict the future but I think the customer-base is growing and they are wanting more reliable deliveries and pinpoint services. Instead of sending one container and saying it will be there in Russia sometime next month, you need to say the container will be in the Moscow warehouse next Tuesday by 6pm; that is the direction we are going.”
Company Information INDUSTRY
Container shipping HEADQUARTERS
Helsinki FOUNDED
1966 EMPLOYEES
550 REVENUE
€220 million PRODUCTS/ SERVICES
Provides services to ensure safe and rapid container shipping between Russia and the Baltic, Europe, UK, Ireland and the North Sea, as well as between North Africa and the Mediterranean.
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A Major Boost To The Ghanaian Economy Written By Sam Jermy Produced By Anthony Munatswa
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AT U A B O F R E E P O R T
Strategically located in the Gulf of Guinea, the brand new development will be a dedicated oil and gas free port
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A
tuabo Free Port is set to provide a major boost to the economy of Ghana, as the $700 million facility begins construction next year before becoming operational in 2017. Having recently completed a number of preliminary activities onsite, the company and China Harbour Engineering Company have signed a construction agreement establishing the latter as the main contractor of the project to build a dedicated three-quay port. It is also estimated that over 1,000 jobs will be created as a direct result of the project. In terms of maritime activity, there are three clear areas for the impending facility, which will become Ghana’s third major port. One is an offshore logistics base where goods are received for the offshore oil and gas industry, collated and marshalled onshore and then shipped offshore to the rigs and other vessels during the exploration, appraisal and field development and production phases. The second area is value-added work such as subsea fabrication; this provides the infrastructural platform for companies to do more work in-country which means the company keeps aligned with local content regulations in Ghana. Thirdly, there will be the rig and vessel repair sites where the vessel owners will be able to come in and have their vessels repaired or rigs maintained and repaired by various service companies. Steven Gray, Director at Atuabo Free Port, said: “We have a number of companies who’ve
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Video: Atuabo Free Port
signed up to MoUs with us and are already present in Ghana supporting the oil and gas industry. In addition to the three main areas, there are other elements of the project, such as the logistical movement of personnel. There’s an aerodrome on the site where fixed wing planes can fly in from Accra, and then the rotary wing helicopter operations would operate from there to the offshore platforms. “Then we will have the technology park area where companies who are just seeking office space other than industrial facilities can locate themselves. Predominantly, it’s an international effort: you have to have international contractors that the financing partners are comfortable with - firms that
1,000 Number of jobs to be created by the project
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AT U A B O F R E E P O R T
We Are Creating A Brighter Future!
• Marine Engineering • Road and Bridge • Railway
• Airport • Complete Plant • Dredging and Reclamation
China Harbour Engineering Company Ltd. (CHEC) is a world-renowned international contractor. CHEC has 40 overseas branches and offices with business activities covering more than 70 countries and areas including Ghana, Ivory Coast, and lots of Africa countries. The company is currently employing over 7,000 domestic and international staff to undertake 10 billion USD worth of projects. CHEC is focused on basic infrastructure construction, and principally engaged in the survey, design, construction and supervision of road, bridge, port, terminal, channel, railway, tunnel, airports, civil work and other infrastructure construction, capital dredging and reclamation dredging, the investment of transportation infrastructure, development and operation of urban complex, estate development and etc. CHEC prides itself on providing a full service to its clients and uses its international engineering experience, global business network, talented management team and robust financial backing to offer clients a wide range of service options such as D&B, EPC, PMC, BT , BOT and PPP. Apart from the contractor for AFP Project CHEC has also executed the Ghana Fufulso-Sawla Road Project, Ivory Coast Abidjan Container Terminal Project, Guinea Conakry Container Terminal Project and etc. We are focusing on provide an one-stop solution for our client from the feasibility, design, construction and operation. We are working towards a win-win situation for all our client and partner.
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Tel 00225 2135 7650 | Email checwa@chec.bj.cn | Web www.chec.bj.cn
AT U A B O F R E E P O R T
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have the expertise to handle the construction risks while delivering services on time. “But in addition to that we’ll have a situation where if companies want warehouses or offices built, then that area is being identified as the area where Ghanaian contractors can execute their work.” Regional hub In terms of the capital structure, the Ghanaian government has a 10 percent ownership share, held by the Ghana Infrastructure Fund as a freehold; a further 35 percent will be purchased by Ghanaian state enterprises such as Ghana National Petroleum Corporation and Social Security and National Insurance Trust. Then the international shareholders and a number of international partners will make up the remaining equity. Because Atuabo is set to be a dedicated hub for the oil and gas industry and not just a rudimentary container shipping port, Gray believes it can subsequently become much more of a regional player in West Africa than a country player in that respect. He said: “This will be particularly true for the rigs; we will be meeting a high demand that is not currently met in this area. The offshore supplier vessels have greater choices, but there are still capacity issues in West Africa in terms of facilities that can repair and maintain offshore supply vessels. “Also with the infrastructure deficit on the
Ghanaian government has a 10 percent ownership share, held by the Ghana Infrastructure Fund
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The port could be able to reduce the operational cost of oil by up to one dollar a barrel
continent, and Ghana is no different from other African states, this is a project where they’ve opened up the private sector to come forward with a solution: they’ve addressed the infrastructure deficit for this particular sector without using their balance sheets. “There are no government guarantees and there is no payment for constructing this facility from the Government of Ghana, so it frees up additional government funds that could be used to develop existing port infrastructure and other maritime sectors. “We see the potential certainly in the Ghanaian offshore context, the port being able to reduce
Quality and Excellence
Tel: +233 (0)302 742030 Fax: +233 (0)302 742035 info@taysec.net w w w. t a y s e c . n e t
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No.1 14th Avenue New Achimota Estate P.O.Box OS 1010 Osu, Accra Ghana
At Taysec we strive in all aspects, from project inception to maintenance of N o vthe e mfinished b e r 2 0facility 1 5 to provide quality results on time and within budget.
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the operational cost of oil by up to 90 cents to one dollar a barrel, which is significant.�
Atuabo Free Port anticipates that there will be work
Direct benefits During the construction phase, about 70 percent of the workforce will be Ghanaian. During the operational phase, Atuabo Free Port is a platform that allows other companies to execute their work, so although Gray cannot speak for the tenants coming into Atuabo and where they will source their people from, they will be encouraged to employ Ghanaians who have the skills they require. Certainly Atuabo Free Port’s focus is recruiting from the Ghanaian market and Ghanaian labour resources in the first instance.
opportunities in Ghana for offshore activities from 2018
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Key Personnel
Steven Gray Director
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As part of social engagement with the community area surrounding Atuabo, one of the social intervention programs is the establishment of a community based manpower agency set up by the majority shareholder and international partners. Resources and the profits accruing to the agency will be reinvested back to skills development so there is a sustainable skills development funding for the community who today largely have fish or agricultural based careers. Gray said: “They don’t necessarily have all the skills needed for the oil and gas industry, so this is a way to support skills development through a sustainable business model.
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“We anticipate that there will be quite a lot of work opportunities in Ghana for the offshore activities from 2018 onwards. So it certainly is going to be an energetic market in the early years. But I think, you can look at Atuabo Free Port as a regional hub as well. “Ghana for all the right reasons is seen as a gateway to other countries in West Africa; the English language, the rule of law, a stable democracy – it’s all there. We’re already seeing that with Expro, Halliburton, Schlumberger having their regional offices located in Ghana. “As the capacity and quality of the indigenous companies improve, they’ll be able then to sell their services to other markets and clearly you see the regional markets as their first entry points to support industries. We’re seeing a lot of that already manifesting, where the Ghanaian companies are exporting their skills to Liberia, Searra Leone and so on.” Time is clearly money in Oil and Gas: when you have a rig operation, it is costing anywhere from $0.5 million to $1 million per day, so even an hour’s delay costs companies a considerable amount of money. Atuabo Free Port can offer firms the ability to have a sustainable business, not just for the exploration phase but also the development and production phase and so that may well make marginal fields profitable. This is just one of the reasons why Atuabo Free Port will be a welcome addition to the West African offshore oil and gas industry from 2017.
‘Atuabo Free Port’s focus is recruiting from the Ghanaian market and Ghanaian labour resources in the first instance’
Company Information INDUSTRY
Energy HEADQUARTERS
Accra, Ghana PRODUCTS/ SERVICES
Ports & Terminals
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Bringing internati to Southern Africa
Written by: N
tional standards can markets
Nye Longman Produced by: Daniel Pritchard
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BRITISH AMERICAN TOBACCO - SA
Pioneering best practices across the board, the multinational tobacco products manufacturer has become one of South Africa’s top companies as well as a leading regional organisation.
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T
hrough its commitment to operational excellence, British American Tobacco (BAT) has proven healthy growth is possible, even in an increasingly competitive and regulated sector. By championing the work of its staff and supporting the communities it operates in, the company has positioned itself to continue its dominant position in Southern Africa and beyond. We spoke to Seyi Adeyemo, BAT’s Head of Supply Chain for the Southern African region, to learn more about how a company with a global remit was able to achieve this while retaining local relevance. BAT’s operations cover every aspect of the tobacco product cycle, everything from growing the tobacco, through to manufacture, marketing and distribution to the adult consumer who gets to enjoy his or her smoking moments. Three manufacturing facilities (including one which ranks as one of the largest in the world) cover the company’s regional production requirement including exports to over 20 countries in Africa and the Middle East. Local Distribution is serviced by eight mega depots and 10 cross docks with multiple distribution networks across the country. This supply chain directly oversees 10 markets comprising: South Africa; Angola; Zambia; Lesotho; Botswana; Namibia; Malawi; Swaziland; Mozambique and Zimbabwe. Although focused regionally, Adeyemo said, the tobacco products manufactured at these facilities were exported globally, not to
S U P P LY C H A I N
Key Personnel
Seyi Adeyemo Head of Supply Chain SAA BAT - South Africa factory
mention to the rest of the African continent. He said: “We have a big local market in South Africa; we undertake most of the support for manufacturing, product research and regional quality management for the continent from here.” Being part of a company with a global reach has exposed operations in Southern Africa to international standard expectations across the board, in terms of operational excellence, quality and social responsibility. Commenting on BAT’s production standards in this regard, Adeyemo said: “There is a constant focus on improving the efficiencies of our processes and operations. We do an internal benchmark first and look at best practices across the region as well as across all of our operations globally. “We do regional and global reviews so
Seyi Adeyemo became Head of Supply Chain, Southern Africa Area (SAA) in January 2014 following a stint as the Head of Product and Quality for Southern African Area. Seyi Joined BAT in 2013 as the Head of Quality after which he moved into the Area Supply Chain Manager role. Seyi has Prior FMCG experience with Procter & Gamble where he worked for 14 years in various capacities including head of Logistics, head of Supply Chain, lean/Six Sigma program manager and Group Operations manager in West Africa.
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that there is clear visibility to management from efficiency, inventory management and all the financial control requirements. “We also do external benchmarking, since often non-tobacco related industries also have some very good standards that can be reapplied, particularly with Lean, 6sigma and Integrated Works Systems. If there’s a best practice in another industry, we are not shy to apply it to our own.”
S U P P LY C H A I N
Arturo Rodriguez Head of Operations, Southern Africa Area
Mastering the African supply chain Being the dominant tobacco company in most of the markets it serves comes with its own challenges, not least those imposed by operating in countries where both infrastructure and legislative challenges are commonplace. Adeyemo said: “African logistics is complex. Getting our products around can be difficult, especially because road networks and infrastructure are not always well developed.
Arturo joined BAT in 1995 and has fulfilled various roles in Operations in Mexico and Kenya, including Manufacturing Manager at Heidelberg for three years. As the Head of Operations for ECA in 2011, Arturo led the overall expansion and optimisation of the factory. He has a depth of business experience and leadership and is well known for his commitment to developing people and getting things done quickly and to a high standard. These are qualities that are valued and critical for the success of Operations in SAA. Arturo is married with three sons.
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BRITISH AMERICAN TOBACCO - SOUTHERN AFRICA
Proud packaging partner
W
hen only the best packaging will do for intensely competitive cigarette marketers. CTP Gravure is almost invariably the company of choice – offering these discerning customers exactly the right combination of design innovation, handsome aesthetics and the highest printing and finishing standards on all outer packaging as well as cork tipping and multi-colour tipping requirements. Your partner in print for products on the move CTP Gravure (Jhb) a division of CTP Limited Tel: +27 11 345 – 4000 Fax: + 27 11 345 – 4400
BUSINESS IS COLLABORATION INSPIRING OUR CLIENTS TO BE MORE
PROUDLY PARTNERING WITH BRITISH AMERICAN TOBACCO SOUTH AFRICA SINCE 2011
www.imperiallogistics.co.za
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BRITISH AMERICAN TOBACCO - SA Sometimes our products have to go out by sea into Europe in order to then get back to Africa! “This is just part of doing business on the continent and is factored into the cost of production. Planning is critical, understanding the market and understanding the culture of the markets that we go into is therefore essential. “We need to plan how we manage our inventory, how we manage logistical lead times and how we work with different currencies to handle the volatility that exists in our business environment. We have global systems in place; we have dedicated people who understand the terrain, and we have systems that help us to predict and plan our logistics. Speed to market and availability of stock to our customers and consumers are our crucial logistical concerns in this regard. “We work with third Partly Logistics companies across Africa who know the terrain, especially in terms of Port operations, road transport, and they move the majority of our stock for us. We work with the right partners to get our product to where we want it to be.” Growing responsibly Across its global operations, BAT seeks to operate in a way that not only directly create value for its shareholders, but also those stakeholders involved with its operations indirectly, particularly the communities it works in, both socially and environmentally. By factoring this into its business model, the company has received
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Key Personnel
Brian Finch Managing Director Brian Finch was appointed as the Managing Director of BAT Southern African Area in April 2010 following a stint as Head of Marketing for BAT’s Africa Middle East Region. He began his career at BAT more than 20 years ago and has occupied several marketing roles at different levels in seven countries, including Congo, Zimbabwe, the UK and Switzerland. One of Brian’s secrets of success is to try to turn bad into good, and challenges into opportunities.
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Video: A day in the life of a prompt sales representative
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international awards alongside local recognition. Adeyemo noted that this holistic approach began within the business itself; with our commitment to skills development and training, opportunities to progress both educationally and professionally are always available for employees looking to excel and lead those around them along the same path. The company operates a 70:20:10 Development model (70 percent on-thejob learning, 20 percent learning through others and 10 percent formal training) which supports agile learning by encouraging individuals to identify flexible ways of acquiring knowledge and skills in relevant contexts.
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BAT’s operations cover every aspect of the tobacco product cycle
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BRITISH AMERICAN TOBACCO - SA
“More than 77 percent of employees are from previously disadvantaged population groups and BATSA is Certified as a Top Employer in South Africa for 2015 and achieved the much coveted level 3 BBBEE compliance.” – Seyi Adeyemo Head of Supply Chain SAA
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The company’s CSR operations in its region are well-esta
On top of having to compete with other tobacco producers, BAT has to deal with all the challenges associated with the illicit tobacco trade, as well as government regulation that is sometimes inconsistent across different markets. Adeyemo was confident that the company’s competitive position enabled it to not only conquer these challenges but also to be in a position to work with governments to defeat the illicit trade. The company’s CSR operations in its region are well-established and have received international acclaim, with focus on empowerment, sustainable agriculture and civic life. More than 77 percent of employees are from previously disadvantaged population
AFRICA
Company Information INDUSTRY
Tobacco supply and production HEADQUARTERS
Cape Town, SA FOUNDED
1902 EMPLOYEES
ablished and have received international acclaim
2,500
groups and BATSA is Certified as a Top Employer in South Africa for 2015 and achieved the much coveted level 3 BBBEE compliance. The company has been able to recycle over 95 percent of waste generated, as well as upwards of 50 percent of its water, which it also collects and feeds back into production. By combining its might as a global operator with a dedicated focus on the needs and nuances of the markets comprising southern Africa, BAT has been able to remain one of the top tobacco companies while also proving that retaining a position as strong as this can be done so in a socially and environmentally friendly fashion.
REVENUE
85% of Legal Market Share in South Africa PRODUCTS/ SERVICES
Tobacco supply and production
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CAA: Putting Uga
Written by: Nye Longman Produced by: Daniel Pritchard
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The Civil Aviation Authority of Uganda is leading the development of the country through the timely implementation of its 20-year Master Plan
U
ganda’s Civil Aviation Authority (CAA) has reached a turning point. Faced with an ever-increasing growth in demand for its services and insights, the Authority has developed a strategy massive in scope; the 20year ‘master plan’ will look at building the capacity of Entebbe Airport in order to facilitate the growth of the Uganda’s economy in the long term. It is achieving this by ensuring operational efficacy through technological innovation, operational excellence, and by supporting its workforce. Operations The CAA is primarily concerned with the operations of Entebbe Airport (in addition to some other small-scale airfields) and, in an official capacity, its main responsibility is to maintain the highest standards of safety, security and service in civil aviation. Its remit is not as narrow as it sounds, as Managing Director Rama Makuza explained: “The Authority offers advisory, operational and control functions to the government of Uganda the air transport operators and other stakeholders in the air transport industry. “In particular, The Authority is charged with the role of advising on international conventions relating to civil aviation and how these will be adopted necessary to give effect to the standards and recommended practices under those conventions.” It is also charged with licensing air transport,
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Entebbe International Airport
safety regulations, providing air navigation services, coordinating search and rescue activities and certifying both operators and aircraft. The Authority is also charged with the establishment, maintenance, operation and ownership of aerodromes and, any other functions as may be conferred upon it by government. In short, the CAA forms the backbone of Uganda’s civil aviation sector and is therefore responsible for its economic growth through this channel, both directly and indirectly. Last year, the Authority had a registered income of $46.4 million and has an average annual recorded growth of nearly 60 percent; developing at this rate brings with it both opportunity and danger in almost equal measure. This all came to a head last year, Makuza explained, and required appropriate action. He said: “We found ourselves handling traffic that
Key Personnel
Dr. Rama Makuza Managing Director
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C I V I L A V I AT I O N A U T H O R I T Y O F U G A N D A
CAA(U) staff meet with IT Specialists from CISCO on 25th February, 2015 at CAA(U)
had been projected for 2019 in 2014! The 20-year Master Plan is and was a response to this increase in pressure and demand for our aviation services and facilities following this tremendous growth in traffic, which has surpassed previous projections.�
headquarters
Technology In liaison with regional experts in the aviation industry, the Authority has used technology as a panacea to address safety, capacity, efficiency and environmental requirements, particularly in-line with the ICAO Global Aviation Plans in Air Navigation and Safety. Included are some Mode S radar surveillance systems which simultaneously provide enhanced 118
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surveillance capabilities and reduce controllerpilot workload. The CAA has also undertaken a series of automation measures across the board in a bid to drive efficiency and safety, this covers air traffic management (ATM) and aeronautical information management through the implementation of automatic terminal information systems (ATIS) and safety nets, as well as automatic weather observation systems (AWOS). The Authority is also in the process of migrating from conventional navigation systems based on fixed points to satellite based navigation using global navigation satellite systems (GNSS). It has already delivered GNSS Approaches for Entebbe Airport, as well as area navigation on some international routes. Makuza said: “With this we expect to reduce air traffic delays and provide more flexible and direct routes through Ugandan airspace. We have now engaged a consultant to re-design the airspace of Uganda to take into consideration the increased traffic at Entebbe and the new airports and control zones. “The new airspace re-design will also address the underlying technologies required to support future ATM operations for both civil and military traffic. We are also participating in regional safety projects in the EAC, Northern Corridor, Central Corridor, COMESA and Tripartite, among others, that will bring together collaborative efforts from across the region to improve safety, capacity and efficiency.”
CAA(U) staff discuss with IT Specialists from CISCO the CAA (U) IT business requirements
“We expect to reduce air traffic delays and provide more flexible and direct routes through Ugandan airspace” – Rama Makuza, Managing Director
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$46.4m The amount of revenue generated by the Civil Aviation Authority Of Uganda
The CAA also understands the importance of technology from a software perspective and is ensuring that it can benefit operationally from rolling innovations out in this regard. These have taken the form of monitoring and evaluation systems which staff have already been trained to operate. Software has also driven the Authority’s automation drive, particularly in the form of e-procurement, passenger tracking, and car parking. CAA is also looking to implement a new log management system and revamp its flight information displays to have a more modern look. The Authority is also utilising modern
The Management and Staff of Peja East Africa BV., Would like to thank Civil Aviation Authority (Uganda) For the more than 20 years’ close cooperation. We, together with our Principals we represent, Congratulate UCAA upon this milestone. We are enabling UCAA get the best technology Of the world-leading Manufacturers. • Atis/Awos Systems • Air Traffic Control • Air Navigation Systems • Voice Recorders
• Radio Communication VHF/HF • AFIS • Consoles • VCCS
• Airfield Ground Lighting • Bagage Handling Systems • Non-Directional Beacon • Tower Simulators
T +31263541200 E info@peja.nl | Peja East Africa BV | P.O. Box 117 | 6800AC | Arnhem | The Netherlands
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Civil Aviation Authority head offices in Entebbe
flying techniques, in the form of continuous descent and climb operations, which will help to reduce its emissions and fuel burn and, as so many organisations are finding, will reduce the amount spent on this aspect. Talent management Makuza was proud of the achievements of his staff in the face of an ever-increasing demand for services; his confidence in his teams is well founded since the Authority has strived to ensure that not only its workforce performs highly, but also that it is adequately motivated and rewarded in recognition of this fact. He said: “Aviation is a highly specialised industry that calls for specific skills in most areas. We provide attractive packages to staff.
“It is clear that the CAA (not to mention Entebbe Airport itself) is set to play a significant role in the social and economic development of Uganda as tourism and trade continue to grow” – Rama Makuza, Managing Director
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“Uganda operates a liberalised air transport regime which encourages free entry and exit of air operators. It is therefore in its interest to encourage foreign air operators to operate in its airspace extend a number of incentives to domestic and international operators” – Rama Makuza, Managing Director 122
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East African Safari Air Express launched flights to Entebbe International Airport
We also undertake continuous motivational programmes to ensure job satisfaction. Staff are also supported to attain higher academic grades and professional skills.” “The majority of the technical staff at the Authority are internationally certified; we review our training needs and plan every year to ensure that standards are maintained. The training plan ensures that the various staff training needs are addressed following recommendations and observations of the staff appraisal exercise and the industry system audits.” “The management team and managers have
AFRICA
all been exposed to the Aviation Management Course that is conducted at various Aviation Academies to specifically equip them for the industry’s rapidly changing environment.”
Company Information INDUSTRY
Aviation
Putting Uganda on the map Uganda operates a liberalised air transport regime which encourages free entry and exit of air operators. It is therefore in its interest to encourage foreign air operators to operate in its airspace extend a number of incentives to domestic and international operators. Makuza said: “Some of the incentives include a 100 percent discount on aeronautical charges for one flight out of every seven frequencies a week in/out of Entebbe International Airport, on a specific sector, for scheduled domestic operators. “In relation to investment in physical infrastructure, CAA also provides rebates on land lease rates and concession fees equivalent to 10 percent of the capital investment cost spread over 10 years to capital projects for aviation infrastructure undertaken in Uganda.” It is clear that the CAA (not to mention Entebbe Airport itself) is set to play a significant role in the social and economic development of Uganda as tourism and trade continue to grow. By tacking the prospect of massive growth in demand head-on with its 20 year master plan, the Authority will be fully equipped to ensure that the country’s most important air asset is set to facilitate the development of the country.
HEADQUARTERS
Kampala, Uganda FOUNDED
1994 REVENUE
$46.4 million PRODUCTS/ SERVICES
The authority advises government on policy matters concerning civil aviation generally and on matters regarding international conventions relating to civil aviation and the adoption of measures necessary to give effect to the standards and recommended practices of the international air transport system
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Airports Council International, Africa Region (ACI Africa): Supplied by: ACI
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CI Africa was established as a region of ACI in 1991 with the overarching objective of advancing the collective interests of African airports and the communities they serve. ACI Africa consists of 62 regular members in 50 countries managing 250 airports and 21 World Business Partners. “The continent is vast and dynamic, and serving our membership requires developing bespoke solutions to myriad challenges,” explained Ali Tounsi, Secretary General, ACI Africa. “As such, we focus on training, conferences and exhibitions, and collaboration with aviation stakeholders to promote a safe, sustainable and economically viable airport industry that is well positioned for future growth.” In the realm of training, ACI Africa, in coordination with the ACI Fund and the ACI Developing Nations 126
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Assistance programme, regularly organis es free courses in French and English to members to improve the capabilities of their staff, especially in the areas of security, the development of non-aeronautical revenues and safety. Indeed, ACI’s top priority is ensuring safety across every aspect of airport operation. With this goal in mind, the ACI Airport Excellence (APEX) in Safety programme was established in 2012 with the main objective of promoting safety at member airports by identifying gaps and sharing best practices with an eye toward eventual aerodrome certification. In 2014 ACI Africa welcomed the APEX in Safety team at Sir Seewoosagur Ramgoolam International Airport in Mauritius; Félix Houphouët Boigny International Airport in Abidjan; Diori Hamani International Airport in Niger; Cotonou International Airport; Khartoum International Airport; PortGentil International Airport; and Ouagadougou International Airport. At the time of writing, Nigeria’s Nnamdi Azikiwe International Airport is preparing to host an APEX review in mid-June. “ACI Africa and its members understand that ensuring the safety of the traveling public is paramount to building a sustainable industry,” Tounsi said. “I’d like to congratulate African airports for their proactive stance with regard to improving safety standards.” ACI Africa is equally committed to representing its members’ interests on both the regional and world stages, participating in events on a
“ACI Africa and its members understand that ensuring the safety of the traveling public is paramount to building a sustainable industry” – Ali Tounsi, Secretary General, ACI Africa
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regular basis as a means of sharing knowledge and bringing attention to airport issues. Most recently, ACI Africa actively participated in the Aviation ICT Forum; the Second Airport Expansion Summit; the UNWTO Regional Seminar on Tourism and Air Connectivity in Africa; the African Renaissance Movement Conference; IATA Aviation Day; the Summit of the African Strategy Roads; and the ICAO meeting on Development of Air Cargo in Africa. In addition to the above, ACI Africa organises events as a means of giving delegates a forum to share experiences and plot the future of the industry in the region. In 2014, ACI Africa held a very successful Regional Security Conference in Dakar, Senegal, as well as its 23rd Annual Assembly, Conference & Exhibition in Durban, South Africa. “2015 is shaping up to be just as exciting as last year,” Tounsi noted. “In April ACI Africa held the 53rd Meeting of the Board and Working Groups, with its Regional Exhibition and Conference taking place at the same time. Looking ahead, we will welcome delegates to Hammamet, Tunisia in October for the 24th ACI Africa Annual Assembly, Conference & Exhibition. “ACI Africa is proud to act as the voice of the region’s airports,” concluded Tounsi. “Africa is at the forefront of emerging markets with regard to its high potential for increased air travel, and as the airport industry evolves, we will be there to ensure that it does so safely, securely and sustainably.”
Pascal Kowu Komla, President
Ali Tounsi, Secretary General
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Leadin en
Canarail
ng the Canadian railway ngineering industry with integrity and versatility Learn how this Canadian company provides reliable and efficient solutions to fit all of its clients’ needs Written by: Cutter Slagle Produced by: Andy Turner 131
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s a leading Canadian railway engineering consulting firm since 1990, CANARAIL’s main focus has always been quality and providing reliable and efficient solutions tailored to the client’s objective. Because of this, the company has achieved recognition in international markets. With experience in a range 132
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of areas that include track and infrastructure, rolling stock, railway operations, signaling and telecommunications, manage consulting and much more, CANARAIL has had the opportunity to work on a variety of transportation projects in North America, the Middle East, Asia, Africa, Australia, Europe and Latin America.
SECTOR
Due to the company’s great reputation, word-of-mouth recruitment, design technology skills and strategic management, CANARAIL continues to maintain excellence. A team effort CANARAIL prides itself in providing innovative and customized
solutions, which the company is able to do because of its diversified team. Miguel Valero has been the President of CANARAIL since 2011, overseeing a variety of consultants that include alignment and track engineers, rolling stock engineers and technicians, workshop designers and more.
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Joseph Sarkis, photo cred LINKEDIN
The entire CANARAIL team is known for listening to its clients, allowing them to analyze problems and find appropriate solutions, which then lead to the development of projects and measurable results. Acting as CANARAIL’s senior vice president, one of Joseph Sarkis’ responsibilities is leading the engineering teams, which assist in providing technical support to the network of field offices throughout the world. It is through the efforts of the entire company that CANARAIL has earned and maintained a great reputation, as well as accomplishing many achievements. This include the ongoing feasibility
www.door-spec.com
1225 Industrielle, La Prairie, (Quebec) J5R2E4 T 450-444-6994 F 450 444 9347 290 Margaret Srteet Plattsburgh, NY, 12901 T 518-324-7177 F 518 324-4490 I N T E g R AT E D D O O R S Y S T E M S
DSTEAM@DOOR-SPEC.COM
On the Rails Of
innOvatiOn
CANADA
study for a 330 multi-user mining railways in Northern Quebec, the ongoing refurbishment of the Rocky Mountaineer fleet’s GoldLeaf cars in Western Canada, and the feasibility study for the improvement of the accessibility of rail services in Rwanda, Burundi and Tanzania, which was completed in 2014. Further ongoing projects for CANARAIL include the engineering, supervision, and a feasibility study of construction for a new 2,400 kilometers rail link in Saudi Arabia, the feasibility study for a new 600 kilometers rail link in northern Afghanistan, and the feasibility study of seven different railway projects to improve the Trans-Asia connectivity in Bangladesh.
Skills and services The CANARAIL team has a wide collection of skills and services that has led to a list of impressive projects. The company’s consulting, engineering and project management services have resulted in more than 800 projects completed throughout the world with major clients that include mining companies, rail operators, world financial institutions and public and parapublic sectors. Specifically, CANARAIL’s special expertise in heavy haul railway operations and the company’s overall support in the mining sector to plan and transport products allows it to stand out among others in the industry.
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CANARAIL
With over 800 projects carried out all over the world, Canarail has made a name for itself in the industry. Photo Cred: Shutterstock_Mrak.hr
CANARAIL also utilizes a range of tools to aid to their skills and services. These innovative tools include various commercialized software packages such as AutoCAD, Civil 3D, Matchhcad 14.0, Planimate, Raster Design and SAP and customized Excel Visual Basic Applications. CANARAIL has even developed numerous spreadsheet136
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based models to facilitate the analysis and design of the most efficient rail-based transport systems for its clients. Current events Recently, CANARAIL has closed on an agreement with Reli Assest Holding Company (RAHCO), the rail infrastructure manager in Tanzania
CANADA
for the Inspection and Capacity Rating of Railway Bridges. The objectives of this project are to update the existing bridge and culvert register for Tanzania’s Central and Mwanza lines, as well as identify the structural rehabilitation work that is needed to allow operations of inter-modal container trains with 15 tonne axle loads. In gaining control of the project, CANARAIL will be able to both strengthen its position as a leader in railway disciplines and as an important industry player in Eastern Africa. This new project will be the first for CANARAIL since the company completed its preliminary engineering study, which explored the construction of a new railway line between Isaka, Kigali and Musongati (Burundi), and the upgrading of the existing infrastructure between Dar Es Salaam and Isaka.
Company Information INDUSTRY
Supply Chain HEADQUARTERS
1140 de Maisonneuve Blvd. West, Suite 1050 FOUNDED
1990 EMPLOYEES
500 REVENUE
100 million
Moving towards the future As a member of the Systra group of companies led by Systra France, a leading European company specialized in railway, urban, high speed and light rail transit systems, CANARAIL will continue to pursue international growth. Moving towards the future, the company will maintain its objective to be the absolute best, accomplishing this task with its unique approach in bringing together the most talented people and focusing relentlessly on its railway engineering core business. w w w. c a n a r a i l . c o m
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SDI Managing risk to incre
reliability for fo
Through a more connected MRO supply chain, S
Written by: Sasha Orman P
Inc. ease productivity and
orty-four years
SDI Inc. is helping organizations grow and thrive
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SDI INC.
SDI’s President & CEO, Andy Cvitanov, was the Master of Ceremonies at the inaugural Innovation Symposium this spring. The Innovation Symposium was a 2-day educational forum for the advancement of MRO
D
isruptive innovation, compressed product life cycles and changing consumer expectations are driving companies to become more efficient. With this comes an increased focus on enterprise asset management and reliability. This has caused a shift in industry from a segmented, functional department perspective towards a fully integrated end-to-end model. SDI is the first to develop a true end-to-end supply chain management platform that takes 140
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into consideration how MRO (maintenance, repair and operations) impacts the rest of the supply chain and the enterprise overall. The evolution Traditional integrated supply simplifies purchasing and inventory practices by consolidating a company’s supply base through a single source, allowing the company to focus on core business activities and produce more efficient results. While traditional integrated supply eliminates several steps in the
S U P P LY C H A I N
segmented supply model, there are still missing links in the supply chain — links that enable manufacturers to identify and correct redundancies. Much like the supply chain for direct materials, the MRO supply chain includes the design, planning, execution and control (or maintain) components, as well as monitoring the supply chain activities. The MRO supply chain most often interacts with the direct supply chain between the planning and execution stages, with the objectives of mitigating risk, reducing costs and creating
measurable value. This strategic, collaborative approach in the supply-chain-as-a-service model delivers harmony between MRO supply and demand, supporting reliable production. A holistic approach “We provide end-to-end supply chain management as a service, focused on MRO for large multisite clients that are capital intensive,� says Jim Owens, Senior Vice President of Business Development for SDI. But one key differentiator w w w. s d i . c o m
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for SDI is that it does not just focus on certain elements of the supply chain. “It’s a platform of people, technology, and processes that we provide to our clients as a service to manage the MRO supply chain holistically,” Owens continues. “It helps them achieve greater visibility and overall equipment effectiveness in a more sustainable way, whereas solutions that are designed just for one particular element in the MRO supply chain might only offer short-term savings and no long-term value.” MRO in the hands of professionals According to a 2008 study by Frank Lynn and Associates, U.S. manufacturers spend approximately $125 billion a year on MRO purchases. The high demand mix of parts
SUPPLIER PROFILE
Jim Owens, SVP Business Development
IMPERIAL BAG & PAPER CO., LLC
Employees: Over 500 Established: 1935 Industry: Food Service Disposables, Paper Products & Janitorial Supplies Distributor Services: Food Service, Restaurants, Supermarkets, Education, Building Services, Healthcare, Sports Facilities, and more. Management: • Robert Tillis, CEO • Jason Tillis, President • Paul M. Cervino, CFO Website: www.imperialbag.com
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C O M PA N Y N A M E
The SDI Solution Center helps visitors understand all the different components of an MRO platform, how they’re tied together and how they impact one another—and the enterprise as a whole
required for increasingly complex production lines leads to a high incidence of obsolete inventory. This, combined with a highly transactional market for low value, high volume spending makes for a fragmented, increasingly globally distributed supply base. “For many large multi-site clients, often times MRO is a neglected, 144
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underfunded and under-resourced area of the business,” Owens says, adding that in situations like this the MRO process can become fragmented and decentralized— and processes like this are often not operating at their best or most efficient. “We strip all that out and focus on delivering value from an end-to-end
SECTOR
perspective,” he explains. “The value comes from eliminating waste and defects in supply chains, reducing costs substantially, and enabling reliable production by making sure the right parts are there when they’re needed and in the right condition,” Owens says.
Working with the client’s best interests at heart How does SDI set itself apart from the competition? One of the most important factors is its 40-plus years in business, which have given the company expertise in a number of key industries. Another is its deep commitment to working alongside clients as true partners. w w w. s d i . c o m
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undertake a root cause analysis and tackle the issue from multiple angles, whether it’s finding an alternative or re-engineering an existing part. SDI serves its clients through a pure play relationship: This means they are supplier neutral and are not a distributor, but rather an extension of their clients’ businesses. They sit side-by-side with clients to understand their business process to better assess and meet their MRO needs, without bias or any internal conflict. SDI’s goal is to lower the total cost of ownership of their production assets, improve overall equipment effectiveness and lower parts consumption. “We have a dedicated staff of This differs greatly from other reliability engineers that work integrated MRO providers whose directly with our clients in a primary business and revenue collaborative fashion, helping clients models are focused on making enable sustainable production by money by selling specific lines of eliminating unexpected equipment products to clients, regardless of downtime and improving MRO need or expanding inventory levels. process reliability — all while “Our business model today is a reducing the total cost of MRO,” supply-chain-as-a-service platform says Owens. — we’re not selling parts, we’re If a part is failing and needs not selling supplies, and we don’t maintenance, SDI is able to make money off transactions,” 146
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USA
says Owens. “We like to think we sit on same side of the table as our client, driving continuous improvement and creating value year after year and decade after decade.”
Company Information INDUSTRY
Supply Chain
What’s next Looking toward the future, SDI sees plenty of potential in its capacity to create value for an everexpanding clientele. The industrial internet of things, 3D printing, cloud computing, machine learning and predictive analytics are driving changes in manufacturing processes and technologies that are leading to an even more complex and dynamic MRO supply chain. “Manufacturing is going through an evolution, and our clients and prospects are looking for more than just service: they want us to be able to impact their business outcomes directly,” says Owens, noting that its operations must become more predictive to anticipate where problems could arise within their clients’ supply chain systems. Added efficiency measures like remote monitoring, 3D scanning and 3D printing on site are already going a long way toward improving productivity while cutting down on costs, saving time and money for SDI and its partners. As the market continues to evolve and grow, SDI is committed to observing trends in manufacturing in order to anticipate and meet the future needs of its clients.
HEADQUARTERS
1414 Radcliffe Street, Suite 300, Bristol PA, USA, 19007 FOUNDED
1971 EMPLOYEES
Not disclosed REVENUE
Not disclosed PRODUCTS/ SERVICES
Supply chain management
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UGL Adapting its
supply chain
The diversified services firm, which specialises in the delivery of critical assets within Australia, has been in the process of switching its supply chain methodology for the benefit of its end users. Written by: Sam Jermy
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UGL
UGL’s ultimate objective is a dynamic supply chain that is responsive to its customers.
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GL Limited has been on a journey to fundamentally change its operations, in order to get ahead of the industry curve and continue to see the $2.3 billion business grow. The company, which trades on the Australian Securities Exchange, is a leading provider of end-to-end outsourced engineering, asset management and maintenance services with a diversified endmarket exposure across the core sectors of Rail, technology systems, power, resources, water and defence. With over 8,000 employees 150
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(including subcontractors) across Australia and South East Asia, the company partners with some of the world’s largest blue-chip companies, government agencies, and private enterprise/public institutions. It is not an easy task to revise the supply chain strategy of any company, as it is intrinsically linked to daily operations. Dean Newman, Head of Supply Chain for Rail Freight at UGL, explained the Rail Freight business’ journey in detail. He said: “Our underlying fundamental principle is the maintenance and construction of assets; that’s the
AUSTRALIA
UGL’s Rail division falls under the Rail, Defence and International (RDI) umbrella.
same regardless of sector. With regard to Rail, the building of assets has changed; there’s not the mining boom that there once was and the construction of heavy rolling stock has declined as a result.” “Importantly, UGL currently remains the only builder of locomotives in Australia. In the build space, we are General Electric’s representative in-country. We build locomotives either as a coOEM (Original Equipment Manufacturer) product or as a GE product under licence supervision. We have a co-OEM product that we build with them; the C-44 locomotive. As the landscape changed, where we were a large prolific builder of locos and wagons, now there is far greater emphasis on the maintenance of assets.”
“Importantly, UGL Rail currently remains the only builder of locomotives in Australia. In the build space, we are General Electric’s representative incountry.”
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Delivering solutions.
You serve the world’s markets. So do we.
Your top priority is that your cargo reaches its destination – not how it gets there. With our global network, we perfectly combine rail, road, ocean, and air freight to ensure that your goods make it anywhere in the world. Safely, reliably, and right on schedule. And we do it quickly, efficiently, and affordably. From simple transport services to complex logistics processes, we have tailormade solutions to fulfill your needs. Let us serve you.
For inquiries please contact:
Schenker Australia Pty Ltd 72-80 Bourke Road Alexandria (Sydney) NSW 2015 Australia
Phone: +61 2 9333 0333 Fax: +61 2 9333 0496 Email: info.au@dbschenker.com www.dbschenker.com
UGL Strategic shift As such, the supply chain that underpins the Rail freight business has had to shift radically. The primary shift has been moving away from an inventory push methodology associated with materials pushed into the supply chain, to support the build of locos and wagons: UGL now has to be far more dynamic, adaptive and aligned to what the customers expect from the firm. Newman said: “We hold a unique position now. Most of the locomotive manufacturers exited in the last 12 to 18 months because of the low demand. So
SUPPLIER PROFILE
AUSTRALIA
in today’s world we’re adopting an inventory pull methodology. Over the last 12 months UGL has been driving the implementation of a really robust sales and operations planning (S&OP) process, where we endeavour to get marketing information from customers (internal/external), look at historical consumption and insert a predictable variability factor, because in the maintenance business you’re always going to have emerging type work. It’s all about trying to build the right forecast model.” “Our ultimate objective is a
THE INTEGRATED LOGISTICS
DB Schenker stands for performance, service and safety, regardless of the complexity or extent of logistics tasks and requirements. We are well equipped for any and all challenges thanks to our robust business model. Merging international markets and increasing flows of goods are challenges we face every day, and at the same time are what drives our business. Schenker Australia Pty Ltd was established in 1962 in Sydney and provides a complete range of international air and sea freight forwarding together with integrated logistics services from its premises in Sydney, Melbourne, Adelaide, Brisbane, Perth and a subsidiary office in Auckland, New Zealand. With more than 1,100 employees and over 240,000sqm of storage capacity, DB Schenker in Australia and New Zealand is well-positioned to handle unique requirements of any industry. Our certifications and recognitions emphasize our commitment to provide quality service to its customers and continual improvement and its commitment to environmental responsibility.
Website: www.dbschenker.com w w w. u g l l i m i t e d . c o m
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C&J SHEETMETAL FABRICATIONS
One-Stop Shop Approach C & J Sheetmetal Fabrications started in 1990 and over the past 25 years our Company has grown due to providing Excellent Customer Service, Quality Products and On Time Delivery. We service the Rail, Mining, Defence, Industrial and Engineering sectors in Australia. We currently have an Australia wide client base, which generates repeat business. Quality Management System – ISO 9001:2008
WE ARE SPECIALISTS IN:
• Laser and Water Jet Cutting • CNC Pressing, Punching & Folding • Stainless Steel, Aluminium and Mild Steel Fabrication, by Certified Welders • CNC Machining / CNC Milling • Sandblasting • Spray Painting to Automotive Quality
Ph: +61 2 4904 0000 Fax: +61 2 4947 1166 Email: sales@candjsheetmetal.com.au
1 Waterloo Street Bennetts Green NSW 2290 www.candjsheetmetal.com.au
UGL
AUSTRALIA
dynamic supply chain that is responsive to our customers. But more importantly it will become a fundamental enabler for the reduction of inventory held within the business and will improve the ROCE (return on capital employed), making sure inventory is not on shelves being lazy; it is actually working for us.” “Two years ago we were very much in the build space and now that shift has seen the supply chain change to the maintenance of assets instead. Historically we had a business referred to as the National Freight Parts Sales, which had rendered supply chain capability.” UGL has now implemented a more robust supply chain focusing on operational efficiency, core competency, and total quality management across its Rail division. Inventory management
SUPPLIER PROFILE
Dean Newman - Head of Supply Chain for Rail Freight at UGL
C&J SHEETMETAL FABRICATIONS
Established in 1990 C & J Sheetmetal Fabrications enjoys a reputation as one of most respected names in our field. We are a family owned Company that has been running for over 25years. Our vast industry knowledge, highly experienced tradesmen and state of the art equipment allows us to offer our customers options not normally available from one location. We carry a wide range of sheet and plate in stock and can respond to your urgent requirements. C&J Sheetmetal are committed to offering a quality product and better service at very competitive prices. We conform to a Quality Management System ISO 9001:2008. Website: www.candjsheetmetal.com.au
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UGL is a leading provider of end-to-end outsourced engineering, asset management and maintenance services
UGL
AUSTRALIA
has also improved, with sales and operational planning helping to move from the push to pull methodology in response to changing market needs. Implementation in Australia The Australian engineering and Rail sectors spent a lot of time where a push supply chain strategy was the best option according to Newman, because it was simply more important to keep customers’ rolling stock moving in industries such as mining. Compared with the FMCG (fast moving consumer goods) world, which has a far more mature advancement of pull strategies, mining and Rail have been slower on the uptake. Newman suggests the Rail industry in Australia is now also awakening to this pull methodology though. He said: “It’s been a tough road at times because it has been a paradigm shift from the way in which the business operates, and the entire mindset has to change. We’re moving from buying ‘just in case’ and trying to push that to a market where we move to a strategy that says ‘no, let’s understand what we will need and when we
Dean Newman
“The outlook is positive in that we’ll continue to diversify and serve our customers with exceptional service, and as we migrate from a push to pull inventory strategy it will help us to help them.” w w w. u g l l i m i t e d . c o m
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End-to-End Mobile Communication Solutions base2 is an original equipment manufacturer (OEM) of communications and control room hardware and software. From product inception, electronic design, mechanical design, testing, rmware and software, through to production, all engineering and manufacturing services are performed in-house. • The base2 ICE, In-Cab Communications Equipment is a modular communications device speciically designed for the rail industry. • The base2 VCS is a control room system for integrating voice and data communications systems into a touchscreen operator console. • The base2 National Train Communications System (NTCS) is used for all train control communications on the Australian Deened Interstate Rail network and selected regional areas.
28 Pritchard Road, Virginia, Queensland 4014, Australia Ph: +61 7 3637 5444 | Fax: +61 7 3637 5445 | Email: admin@base2.com.au
www.base2.com.au
UGL will need it.”’ “Implementation of pull methodology on inventory stocking is a key focus for the supply chain function, as has been the ‘rights’ of the customer, be that internal or external. An internal customer is where we are facilitating movement of materials for one of our maintenance or build facilities that maintain or build locomotives all over Australia. Externally, some customers maintain their own assets, so they would procure their own materials from us to facilitate their asset management.” At the same time, UGL has been
SUPPLIER PROFILE
AUSTRALIA
incredibly focused to ensure this operational shift does not result in a decline in its customer service offering. This has been an absolute deliverable for the firm as it has transformed the supply chain over the last year. “Competition is no longer between companies, it’s between supply chains.” added Newman. “It is difficult to compete on price, brand loyalty is diminishing, there are lowcost economies all over the world; but a supply chain that delivers the right product, in the right place at the right time, and for the right customer in the right quantity and quality … well, you can’t beat that.”
BASE2
Established in 1987, base2 has been responsible for design, manufacture and software for numerous control room systems worldwide. Products are developed primarily for the Transport and Life Safety industries. Engineering and manufacturing are performed at base2 facilities in Australia. This includes mechanical manufacturing via Computer Numeric Controlled (CNC) equipment through to electronic assembly via an automated surface mount Printed Circuit Board (PCB) production line. Current ongoing projects include the National Train Communications System (NTCS), the Victoria Regional Rail Communications Network (RRCN) and ICE integration with Sydney GSM-R Digital Train Radio System (DTRS).
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Key differentiators UGL’s Rail division, which falls under the Rail, Defence and International (RDI) umbrella, has a strong philosophy of being an employer of choice not circumstance. Despite the reduction in the manufacturing space, the company has continued to evolve its maintenance division though diversification of services. This has resulted in a new component overhaul division (COD), which is able to leverage its large manufacturing and workshop facilities for wider use. Split into mechanical and electrical, the new
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division also utilises the strong partnerships it has built in mining and Rail with the likes of GE, Pacific National, Aurizon, Rio Tinto and several other similar organisations. Newman said: “Many of our customers have some ability to do their own in-house maintenance in their own right. That’s why we sell parts to them as our external customers. But with the (COD) division we service, repair, refurbish and overhaul equipment as new.” “One of the greatest technology advancements UGL has managed to achieve in the last two years and
SECTOR
successfully rolled out over the last six months has been our mobility solutions. We have invested heavily into Service and Asset Management Mobility (SAM) to ensure work execution efficiency and quality is maximised.” SAM Mobility is a direct user interface for workshop employees to UGL’s quality and material resource planning. Mobility provides portability via an iPad (in a rugged case) so that technicians can perform routine tasks, recognise and create ‘on condition’ tasks, conduct and record ‘strip and quote’ tasks, review and enter
measurement points, and record serialised equipment changeovers. UGL is now able to see all open work for rolling stock while out in the field, complemented by 24 hour support crew. “It has changed the world of our service technicians, they’re now able to create service orders, and give real-time updates. It drastically reduces the risk of errors, has improved stakeholder engagement and provides excellent supply chain visibility. Giving technicians access to our systems and engagement of communication tools, like having email accounts and internet access w w w. u g l l i m i t e d . c o m
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has had a positive employee engagement spinoff which is truly wonderful,” added Newman. If this wasn’t impressive enough, UGL has also brought its own unique industry product to the market. The FlexiCurve™ bogie is UGL’s premium locomotive bogie, providing significant benefits in locomotive performance, reliability and maintainability. FlexiCurve™ is a family of bogies for applications ranging from 90t, 1 metre Narrow Gauge through to 160t, 1.7 metre Broad Gauge. UGL won the Regional (Newcastle) Engineering Excellence Award for this earlier in 2015. Developed in Australia by UGL Limited, the FlexiCurve™ has become GE’s bogie of preference when selling locomotives out of North America, something the company is incredibly proud of. Asked about what the future holds for UGL, Newman concluded: “The outlook is positive in that we’ll continue to diversify and serve our customers with exceptional customer service, and as we migrate from a push to pull inventory strategy it will help us to help them. We’ll also be able to take a far greater level of proactive, pragmatic deliverables as we move forward with our technological solutions, so we’re in a very strong position in that regard.” When the world and its industries change once more, UGL beyond all others will be very well positioned to maximise the upturn potential.
Company Information INDUSTRY
Supply Chain HEADQUARTERS
Level 5, 40 Miller St North Sydney NSW, Australia, 2060 FOUNDED
UGL originated as a small engineering business in Western Australia in the late 1960s EMPLOYEES
8,000 REVENUE
$2.3 billion
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Serving nine Brazilian states, the company of the industry, including stora Written by: Flรกvia Brancato |
OMIZED SOLUTIONS
offers customized services in various fields age, transport and distribution Produced by: Nayara Ferreira
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Up to 60 tons capacity
F
ormed in 2006 from the merge of eight logistics companies in the city of Concórdia, Santa Catarina, Concord Logistics SA (Conlog) was created with a mission to customize logistic solutions by integrating supply chain with simplicity and effectiveness. Over the past three years, the company was featured in OTM Publisher’s “Biggest and Best in Transportation” ranking as one 166
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of the top 15 logistics operators in Brazil. With a staff of 2,400 employees and a fleet of more than 1,180, Conlog counts on professionals and information technology, exclusively aimed at studies and analysis, to meet its customers needs. The development of customized projects for all segments of the supply chain, in addition to feasibility studies for new operations, makes the
BRAZIL
difference. “We are a logistics operator that can customize solutions, allowing customers to increase their productivity and long-term trade relations, ensuring the safety and sustainability of operations,” says Andre Stern, commercial director of Conlog. Market performance The operations are distributed
throughout 23 points in nine Brazilian states: Maranhão, Pernambuco, Goiás, Mato Grosso do Sul, São Paulo, Rio de Janeiro, Paraná, Santa Catarina and Rio Grande do Sul. In addition to services in customs terminals, storage, internal drive, dry cargo transportation by land, capacity and urban distribution, the company is constantly expanding its areas of operation. w w w. c o n l o g s a . c o m . b r
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CONLOG After gaining ISO 9001 and SASSMAQ certifications for hazardous materials achievements and the overall organizational culture ruling principles, it has been possible to explore the company’s potential, explains the director. “In the past five years, Conlog initiated new activities, such as port operations, passenger transportation, bulk liquid transportation and trucks dealerships.” In July 2015, Conlog launched its first operation port, which receives
and manages pulp inventory shipment, totaling 80,000 tons/ month for one of the world’s largest pulp manufacturers. Conlog operates terminals 13,14,15 and 32 of Santos port complex, the largest in Latin America, on a 24-hour basis. Port operations terminals “Conlog begun its activities in Itajaí for container terminals and expanded the market share to Guarujá and Itaguaí. There are more than 300,000 square meters and an annual movement of 300,000 TEUs [unit equivalent twenty-foot],” says Stern.
Conlog has complete structure in three terminals 1 6 8 Novembro 2015 Guarujá (SP), Itajaí (SC) and Itaguaí (RJ)
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Itaguaí Port in Rio de Janeiro
Opened and accredited by the Brazilian IRS as a special clearance export area for customs in 2006, the Guarujá terminal in São Paulo state is located 1.2 miles from the port of Santos, and has an area of 93,000 square meters. Itaguaí terminal, located in Rio de Janeiro state, was opened in 2010 and has a capacity of 4,100 TEUs. The Itajaí terminal in Santa Catarina state, strategically located between the ports of Itajaí and Navegantes, was launched in 2003 and has over 57,000 square meters of paved area; a warehouse with 10,000 square meters offering loading an unloading services; storage, shipping import and export goods; cross-docking; picking; preparation of KIT’s inventory
control; and deliveries monitoring. Every transaction carried out in the warehouse is controlled by the Warehouse Management System (WMS). Customized logistics operation The company offers full-cycle of distribution solutions, making beverage transfer from factories to distribution centers, internal movement in the warehouses (loading and unloading), warehouse organization, order picking and urban distribution for points of sale. There are about 15,000 deliveries per day in more than 50,000 points, with a fleet of over 700 vehicles in operation. “Working with urban distribution of beverages and internal drive w w w. c o n l o g s a . c o m . b r
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for AMBEV in the Rio de Janeiro, Campinas, Guarulhos, Balneario Camboriu, Florianópolis, Sapucaia do Sul and Pelotas regions, Conlog has been placed in the spotlight in the segment by earning several awards,” says the director. Liquid bulk and transport Currently serving BR Distribuitor/ Petrobras in Paulinia, São Paulo
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state, and Odebrecht Agroindustrial in Maringá, Paraná state, Chapadão do Sul and Campo Grande, Mato Grosso do Sul state, the company transports ethanol, integrating services to the multimodal system involving pipelines and railways. With a fleet of 48 buses shuttling more than 4,000 people daily, Conlog offers employee transportation for the agribusiness
Custom Fleet for Ambev’s urban beverage distribution
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“Working with urban distribution of beverages and internal drive for AMBEV in the Rio de Janeiro, Campinas, Guarulhos, Balneario Camboriu, Florianópolis, Sapucaia do Sul and Pelotas regions, Conlog has been placed in the spotlight in the segment by earning several awards.” – Andre Stern, commercial director of Conlog
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CONLOG units of Odebrecht in the cities of Nova Alvorada and Glória de Dourados, both in Mato Grosso do Sul state. The logistics dedicated operation area includes a forest shuttle service. For this, timber is transported for reforestation purposes as well as production of cellulose at the Suzano Papel e Celulose unit, in the Imperatriz
region, Mato Grosso state. People and management In order to attract, develop, and retain talent, Conlog has a specialized sector in management and people development. Training programs reach all levels of workers, including first aid, continuing education, and in-company training for drivers.
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BRAZIL
Ambev’s award proving reference as Logistics Operator
Quality program award from Mercedes-Benz in Germany
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Bus feet - Business charter
Stern adds, “We work with a corporate area of personnel and management engaged in the development of employees, defining strategies for strengthening leadership and evaluation of their performance. Through competency results management, leadership is evaluated providing performance and climate indicators, as well as actions to leverage the development of people, always focusing on love for life value.” 174
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Expansion and investment “Over the last two years we invested approximately USD $10 million in the acquisition of buses and vehicles for bulk liquids transportation. We plan to invest another USD $10 million in new terminals,” says Stern. The inauguration of a new plant in Itaguai, Rio de Janeiro state, is expected in the first half 2016, strategically located near the Port of Itaguaí with access to Arco Matropolitano. At 100,000 square
BRAZIL
Company Informatioln INDUSTRY
Logistics and Transportation HEADQUARTERS
Concórdia/SC - Brazil E S TA B L I S H E D
2006 EMPLOYEES
2,400 MANAGEMENT
meters, the plant will offer integrated transport, storage and container loading and unloading. With a sales forecast for 2015 of USD $ 88.8 million, Conlog plans to focus on strengthening the activities in the area of people and liquid bulk transportation, and on the port segment. “The Conlog’s vision is to be among the five largest logistics operators, albeit the most important thing is to get recognition from our customers regarding the safety, quality and productivity, ensuring operational service excellence,” the director concludes.
Director od the Board: Iraci H. Garcia President: Dagnor Roberto Schneider Vice President: Alejandro Almiron Commercial Director: André Stern Director of Operations: Adenir José Basso Director of Assets: Ladi Bolsi
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COLOMBIA’S LINK to the INTERNET of EVERYTHING
After twenty years of first opening in Colombia, Cisco is the country’s ally for developing technology and networking. Written by: Rebecca Castrejon, Editor Produced by: Lucy Verde, Director of Projects at WDM Group-LATAM Interviewee: Christian Onetto, CEO for Cisco Systems in Colombia
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C
isco Systems was founded in 1984 in San Francisco, California. Since its very beginnings the company was set to revolutionize the way in which different organizations would exchange data and information, by designing, manufacturing and marketing the software and equipment to furnish small, mid- and large scale enterprises.
CISCO SYSTEMS’ PRESENCE IN COLOMBIA
Cisco is the global leader for networking, as 85 percent of the web’s traffic finds its way through Cisco’s systems, becoming an important data exchange which supports and operates the systems for major third parties.
The amount of trust placed in Colombia from Cisco’s headquarters is such, that the
Cisco arrived in Colombia during 1995, and until now it has maintained a leadership role in the IT and communications industry, providing network infrastructure solutions to large data centers, cloud systems and remote connectivity.
Currently, mobile networking is changing the game under an advanced connection infrastructure into which Cisco is a major player. The company helps individuals and companies connect and increase their staff’s productivity and data exchange both with networks and operating systems, as well as with intelligent, mobile devices such as the Cisco Cius tablets. Cisco Networking Academy students 178
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corporation’s largest investment of $6 million was provided for the construction of their new stateof-the-art offices in Bogota, in 2014. Also, the first Cisco Customer Experience Room opened in this location to display digital business solutions in real time to clients and partners. Cisco’s expansion in Colombia -in collaboration with the IT and Communications Ministry and the Colombian Chamber for Computing and Communications (CCIT)- is set to enable government agencies to increase the use of advanced systems and develop key applications which could improve Colombian’s everyday life. The company also foresees the inclusion of Smart
Key People
Christian Onetto CEO for Cisco Systems in Colombia Chilean-born Onetto is a civil and industrial engineer; he graduated from the University of Chile in 2001. Onetto earned a MBA and a Masters in Marketing at the ESIC Business & Marketing School (Madrid, Spain). He first came in contact with IT and electronic equipment when working for the Olivetti company, from Italy. In August 2008 Onetto became IT Service Supervisor for IBM, and not long after he was appointed as an SO Projects Executive. Onetto was first hired to Cisco in November 2010 in Chile as Sales Manager for Service Providers nationwide. By 2012 he had become the Regional Manager for Collaborators, Partners and Organizations, with endeavors in LATAM countries (Argentina, Chile, Colombia, Paraguay and Uruguay). This successful run in a relatively short time earned him being appointed as CEO for Cisco Colombia in January 2014. Onetto was also President of the Colombian Chamber of Informatics and Telecommunication (CCIT), during 2014, and he is also a board member for the ColombianAmerican Commerce Chamber.
CISCO COLOMBIA
Opening of Cisco Colombia new headquarters
City projects, as well as remote medicine and education programs nationwide. Cisco’s leadership provides mobility for businesses, IoT solutions, cloud development and SDN. All these resources bring the 180
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country’s industry a step forward into global competitiveness. And the company’s partners provide tech deployment, customization and aftersales services to ensure every product and service runs properly.
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“We want to transform every Colombian’s lifestyle socially and economically by easing their access to Internet as an infinite source of information” – Christian Onetto, CEO for Cisco Colombia
of telecommunications and its power to transform companies and individuals, the way these would develop and evolve,” Christian “I was brought up witnessing my Onetto shared, the CEO for Cisco father’s work; he occupied important Colombia. Onetto’s experience in positions in IBM and Telefonica. the IT business spans for 15 years. I was inspired by the dynamics RAISING THE STANDARDS THROUGH INTELLIGENT NETWORKING
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Cisco Colombia’s solutions for small, mid and large enterprises include cloud computing, automated networks, data centers, copper and optic fiber networks, SFP interfaces, software, wireless solutions, and many others. Their services include installing multiple-user networks, switchers, virtual offices, remote conference hardware, safety systems and online safety. “Our presence in Colombia is fortified as we reach to new clients in major cities, such as Bogota, Antioquia, Barranquilla, Bucaramanga and Medellin,” the executive said. 20 YEARS TRANSFORMING COLOMBIA During the first twenty years after Cisco first opened in Colombia, there have been more than a few memorable moments; the following milestones are worth mentioning: 1. New headquarters in Colombia: a fully equipped facility
with state-of-the-art infrastructure, able to provide clients of a unique experience. Guests to the event included officials of the Commerce, Industry and Tourism Ministry of Colombia. The event was held on March, 2015 in Bogota. The $6 million investment was the largest to any of Cisco’s affiliates worldwide during the last year. 2. Pushing forward the country’s development and access to technology through Cisco’s Networking Academy and other social programs. Since its creation, the company has helped more than 100,000 students through technology courses within their Networking Academy, creating opportunities for them in a joint effort with the National Learning Service (SENA) and 114 colleges nationwide. Also, 24 percent of the students involved in this program are females. 3. Positive growth since the company opened in Colombia. In a relatively short time, Cisco was able to hold a large market share thanks to its diversified portfolio.
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CISCO COLOMBIA 4. Expansion through networking: Growth in Colombian soil would not have been possible without their partners. Onetto sees them as their in-market representatives: “we are proud of nurturing a network consisting of 300 business partners, which implies we are supported by a 1,000 salespersons army.”
Cisco improvements to infrastructure
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Organizations and associations have also supported Cisco’s efforts, specially the Colombian Chamber of Informatics and Telecommunication (CCIT) and the Colombian-American Commerce Chamber (AMCHAM).
Cisco IP phone
Cisco routers
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DIGITIZING COLOMBIA Cisco Systems Colombia current challenges encompass the deployment of new tech solutions through their cloud servers (HCS – Cisco Hosted Collaboration Solutions): network construction, security to
repeal malware threats, firewalls and all that is related to the Internet of Everything; the company’s portfolio is about to experience an important expansion in upcoming years. Cisco’s sales force and partners will grow in numbers and receive detailed training to make these products and digital services available. “We look to connect that which is not yet connected,” Onetto stressed. Cisco’s endeavors on an app-
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centered structure contributes to fast, flexible organizations, enable to adapt to new technology and exchanging vast data quantities through their network.
as this infinite source of information. As this process develops, cities are transformed into being a more intelligent and sustainable,” the executive added.
In the “cloud” front, the latest developments in video and remote conferences are to be deployed, and soon after the new hybrid “intercloud” high-security models will expand the public cloud network, as deemed necessary; and other tasks include improving the networks’ efficiency for clients in the public and private sectors.
SKILLED PROFESSIONALS
Cisco Colombia follows its commitment to build intelligent cities, the company promotes access to the internet by creating infrastructure for Smart Cities, with automated lighting systems, able to save on budget expenditures, and by creating conditions to improve safety and education.
Proper technical training is a major contributor to Cisco’s success, not only in Colombia, but in Latin America in its entirety. “We must make sure to get the message across each client. Business models evolve and we must make the necessary adjustments to meet our clients’ demands; the staff at Cisco is skilled, experienced and fulfilled every requirement.” Cisco’s company culture has earned high rankings in surveys from Great Place to Work, displaying a highly skilled staff, team spirit and a sense of pride for belonging to Cisco.
“We want to transform every “We favor local entrepreneurship Colombian’s current lifestyle, as a way to develop better socially and economically, by easing businesses in Colombia,” the people’s access to the Internet Onetto said.
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Customer Experience Room - real time interaction in the company’s HQ
SHARING GROWTH AND DEVELOPMENT Being an active member of CCIT, Cisco Colombia envisions a transformation to “smart cities” by empowering affiliated organizations and by creating synergies that contribute to this purpose. Cisco Colombia is headquartered in Bogota and has a location in Medellin. Its presence nationwide is enhanced by 300 partners, which provide Cisco solutions to their clients.
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DIGITAL INTEGRATION Not long after first opening in Colombia, the company sensed a demand for skilled executives, able to interact with IT. This resulted in the creation of the Cisco Networking Academy, opening in the year 2000, providing e-learning programs along with the Colombian National University. More than 100,000 students have benefitted on the best uses for IT resources, and only in 2014, more than 18,000 students graduated from the program.
L AT I N A M E R I C A
Once students finished all courses, they are certified in IT and telecommunications, mastering digital applications, software and IoT, and adding global skills to their resume, with the possibility of becoming an agent of change and development to their country. SOCIAL RESPONSIBILITY
company also supports other social programs, working hand in hand with Fundacion Fe y Alegria (“Faith and Happiness� foundation, in Cali), supporting the Cisco Community Connection sports program, and creating activities for the Colombian youth through Colombianitos Foundation, where Cisco employees take part.
Cisco Colombia has brought light The company also collaborates to issues such as the possibility in programs created along with of telecommuting, resulting in an the Ministry of Education for the agreement with the city of Bogota to Bogota District, SENA and the allow pregnant women and disabled Antioquia government. individuals to work from home. The w w w. c i s c o - l a t i n o a m e r i c a . c o m
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CISCO COLOMBIA PROJECTIONS Cisco’s growth rates has reached double figures during 2014 and 2015, and with the vision of doubling the operation’s size in the country during the next three years, a 20 percent yearly growth is expected during upcoming years.
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Company Information NAME
CISCO Colombia INDUSTRY
IT and network systems
“We strive to become a relevant company, to expand our product portfolio, develop our partners by enabling them financially and with technology to deploy in areas where our presence must increase,” Onetto shared.
HEADQUARTERS
Bogota, Colombia FOUNDED
1995 EMPLOYEES
150 REVENUE
US $170 million WEBSITE
www.cisco-latinoamerica.com
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ASSOCIATION BASC COLOMBIA
Services Management Syste on Security and Control of La America Industry Written by: Víctor Manuel Trujillo Hoyos – Director Ejecuttivo Produced by: Ana Cardenas, Director of Projects for WDM Group
em atin
ACTI HISTORY Business Alliance for Secure Commerce founded by private companies in 1996, with the purpose of facilitate and expedite international commerce through
establishing of management and procedures standards, that could be applied to all supply chain members in the world, associated with governments, customs and international organisms. Now the Association has ten
“Our objective is to promote international commerce by t and standardization of proce
Representing the supply chain of member companie sin Colombia
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regional chapters around on the national territory.
Key People
OBJECTIVES
Co. Víctor Manuel Trujillo Hoyos
Promote the security on international commerce by the normalization and standardization of procedures to prevent risks and make them safer,
Executive Director
e the security on the normalization edures”
Experience: • Business Alliance for Secure Commerce – Colombian Chapter – Executive Director. Since 2014 to date • Principal member of Board of Colombian BASC Chapter since 2002 to date • BASC Regional Coffee Chapter - Executive • Director since 1999 to 2015 Colombian Coffee Growers Federation – National Director of Security. Since 2000 • Ministry of National Defense – since 1986 Education • Public Management. ESAP • PhD Military Science. National Army of Colombia • Post-Degree on Security and Continental Defense. Inter-American Defense College (IADC). Washington, EE.UU • Specialization on Management of Security. Nueva Granada Military University.
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BASC
to increase reliability on international markets and facilitate free commerce of goods and services. Its role has evolved to conserve the integrity of supply chain and it has been consolidated as a global model of cooperation programs between private and public sectors who have worked on developing secure 196
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process and regulations to refine the reliability of all supply chain actors. DEVELOPMENT AND INVESTMENTS • Eighteen agreements of cooperation with customs and international organisms.
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• SIBASC as a technological support appliance to keep the administrative processes, audit control, billing and training reports.
Company Information NAME
CURRENT REGULATIONS The reference for national and regional statutes is the WBO Statute, along with the regulations established by each regional chapter.
Business Alliance For Secure Commerce – BASC Colombia INDUSTRY
Nonprofit association
BENEFITS FOR COMPANIES FOUNDED
• Management system on security and control Certification and annual recertification • Reliability for customers • Reduce of costs and risks as a result of improving its control processes • Facilitate the contracts in different countries through BASC chapters • Training and knowledge programs • Preferential prices to participate on BASC events. • Sensitize the teams on the commitment and importance of be responsible with control and security of the supply chain processes • Support on the validation of BASC/C-TPAT process
2002 HEADQUARTERS
Colombia MEMBERS
1,070 associate companies WEBSITE
www.basccolombia.org
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