w w w. s u p p l yc h ai n d ig i t al . c o m
O c t o b e r 2015
QVC Thriving In The United Kingdom
TECHNOLOGY Delivery
Is The Key To Success In Multichannel Retailing MANAGEMENT Next Generation Telematics Boosts Visability
SPECIAL FEATURE
Aqaba Container Terminal & UGL Rail
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EDITOR’S COMMENT
Let’s get logisticial another issue of Supply Chain Digital. For the October edition we are showcasing the stories of QVC, UGL, RSA Logistics and Containerships; all industry heavyweights in their own right. In regards to the front of book features, we have an interesting article on telematic from Microlise, a few words on supply chain apps and a trusty Top 10 Air Cargo Carriers article. Enjoy the read, and as always you can let us know your thoughts on Twitter via @SupplyChainD HELLO AND WELCOME TO
Sam Jermy sam.jermy@wdmgroup.com
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CONTENTS
Features
12
TECHNOLOGY
Why delivery is the key to success in multichannel retailing MANAGEMENT
Next Generation Telematics
6 4
October 2015
18 TOP 10
Air Freight Companies
Company Profiles EUROPE 28 QVC 38 Containerships
MIDDLE EAST 48 Aqaba Container Terminal 62 RSA Logistics
AFRICA 72 Trans-tech Logistics
USA 80 Marken
28 QVC
AUSTRALIA
48
96 UGL
Aqaba Container Terminal
38 62 RSA Logistics
Containerships
72 Trans-tech Logistics
80 Marken
96 UGL
5
S U P P LY C H A I N M A N A G E M E N T
Next Generatio Telematics
Boosting Supply Chain V
W R I T T E N B Y: M A T T H E W H A G U E E X E C U T I V E D I R E C T O R – P R O D U C T S T R A T E G Y
6
October 2015
on
Visibility
Y, M I C R O L I S E
7
SUPPLY CHAIN MANAGEMENT FLEET OPERATORS need to get as much utilisation out of their vehicles as possible. From a business perspective, having maximum fill, the optimal number of vehicles operating in a fleet at any one time and covering the least number of miles are all no brainers. With the introduction of load sharing, companies are now opportunistically jumping on the chance to take fleet efficiency to the next level. When it comes to achieving this in the supply chain, the need for total visibility is arguably the highest priority factor for success. Companies and organisations are using advances in telematics right now to obtain this Holy Grail of visibility across the entire chain, to ultimately deliver the best possible customer experience while cutting transport costs. It is important now more than ever as changes in consumer behaviour are leading to a need for more versatility, particularly in the outbound supply chain. The good news is that next generation telematics is delivering the tools needed to satisfy these new demands. The effect of online We all know that online retail is 8
October 2015
With the introduction of load sharing jumping on the chance to take fleet e growing rapidly. Research from analyst company Econsultancy predicts that online retail sales will continue their rapid growth again in 2015 to a total of more than £52 billion in the UK. Across Europe as a whole, ecommerce is expected to rise by more than 11 percent this year, with the UK likely to retain its position as the online retail leader in terms of internet sales per shopper. More is still sold online in the UK per shopper than in any other country in Europe, the US or Canada, though others are not far behind. This change in buying behaviour doesn’t come as any great surprise, as it has been happening for some time now. But it does emphasise that
N E X T G E N E R AT I O N T E L E M AT I C S B O O S T I N G S U P P LY C H A I N
g, companies are now opportunistically efficiency to the next level. there are subsequently more home deliveries, more store collections and a greater need for real-time supply chain visibility between depots, out to customers and importantly, over third party distribution companies. We must acknowledge that this online retail trend is heavily influencing how goods are being consumed, delivered and received. The outbound supply chain therefore needs smarter, fresher and enhanced telematics solutions in order to be equipped to deal with the challenges that are being faced. New methods are available that are allowing fleet efficiency to reach new heights.
Next Generation Telematics Of course telematics is no-longer simply about just seeing where a van or truck is located on a map. Sophisticated new technologies, and the advent of cloud-based software, have led to important innovations. A great example of this is the work Microlise has been doing with a British clothing and home products retailer to integrate telematics with information about customer orders to give staff visibility over store and home deliveries. The company now has an overview of all deliveries, whether they are on time, early or running late; enabling accurate 9
SUPPLY CHAIN MANAGEMENT
Developments in telematics have taken their lead from the rapid advances in smartphone and ICT user interface simplicity and fast communication of delivery status to staff and customers. More importantly, it enables proactive, pre-emptive management of customer expectations. For example, if it is known that a delivery is going to be late, or not going to make it at all, other resources can be diverted to complete the delivery within an expected time-frame. Or a message can be sent to inform the customer in advance, thereby protecting 10
October 2015
the all-important relationship. Developments in telematics have taken their lead from the rapid advances in smartphone and ICT user interface simplicity. Ensuring that staff can understand information and that it is displayed via an easy to understand method is important. Each time a tracked vehicle reports in, Microlise’s built-in point-to-point routing engine calculates the time, based on the most likely route, to the
T E L E M AT I C S B O O S T I N G S U P P LY C H A I N V I S I B I L I T Y
next planned drop. Online arrivals boards are updated based on this information. Departure boards also show the planned and estimated time of departure based upon the same data and automated messages can then be sent to customer mobile phones in home delivery operations. Alternatively depot staff can be ready to receive incoming deliveries at just the right time. The Expectation Revolution Things have moved on a long way since the first telematics gateway was placed in a vehicle in the 1990s. Breaking the word telematics down to its constituent parts, informatics and telecommunications, it’s easy to see
‘By combining live vehicle telematics and effective staff and customer communication, outbound supply chain logistics are able to adapt to the online revolution. ’
how twenty years later it is becoming more important than ever. It can be a major competitive differentiator for retailers that are driving growth through online sales, home deliveries and click and collect services. By combining live vehicle telematics and effective staff and customer communication, outbound supply chain logistics are able to adapt to the online revolution. The visibility enabled by telematics is making it possible to identify unplanned stops, turnaround delays and other challenges which might cause problems along the supply chain. Meanwhile, having an accurate view of fleet utilisation maximises fill rates whilst reducing the required number of vehicles to keep costs at optimum levels. Telematics is a word that sometimes struggles with the size and scope of the thing it is trying to describe. It is also the thing which is providing visibility, cost saving and enabling a customer experience which differentiates one retailer from another. In the battle for online commercial supremacy – telematics could very well prove to be the most important differentiator of all.
11
TECHNOLOGY
Why delivery is the success in multichan
We look forward to the eDelivery Conferenc the key components to satisfying the end us Wr i t t en by: I A N J I N DA L , E D ITO R I N C H I E F O F I NTE R N ET R ETA I LI N G 12
October 2014
e key to nnel retailing
ce by highlighting ser
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TECHNOLOGY ONE KEY BATTLEGROUND stands out for retailers who trade online: delivery. They understand that little in multichannel retail matters more than getting the goods to the customer in the most convenient way. Shoppers are now used to ordering anyhow, anywhere, any time and, as a result, retailers are going out of their way to bring orders to where customers are, at whatever time works best for them. Getting delivery right means winning more sales, while those who don’t miss out. What are the latest innovations in retail delivery – and collection – and why do they work? Home delivery It may seem an obvious point, but home delivery works best when customers are at home. That is why House of Fraser went to great lengths to develop a simple yet ambitious delivery service in the autumn. Shoppers ordering online by 8pm can now specify delivery by 9am the next morning. When announcing the new service, at Internet Retailing Conference 2014, Andy Harding, Executive Director, Multichannel, at House of Fraser, said: “The voice of the customer is telling us 14
October 2015
Retailers are raising the bar with logis as successfully and creatively exploiti that home delivery is not convenient. Most people work, and taking time off work, even when you know which 15-minute window it will arrive in, is still a pain.” He added: “This is a key battleground, we believe, and [in 2015] we’ll be launching even more options.” Click and commute Where could be more convenient to take delivery than on the way to and from work? Collection points are now firmly on the transport network map in
S AT E L L I T E N A V I G AT I O N T E C H N O L O G Y
stics, operations and supply chain strategies as well ing business potential to better serve the customer. the capital and beyond, with grocers including Asda, Waitrose, Tesco, Ocado and Sainsbury’s now giving shoppers the opportunity to pick up their internet orders in Transport for London stations. John Lewis, another elite logistics performer in the IRUK Top500, last autumn opened its first Click and Commute store at St Pancras station, where workers on their way home to the east of England can pick up their online orders. Argos recently opened its smallest store to date in
Cannon Street tube station. It promises same-day, next day and fast collection for online orders from the 170 sq ft Argos Collect branch. Using a hub and bespoke logistics model, it says it can get any of 20,000 products to the shop in super quick time. Round the clock Even the retailer with the longest opening hours can’t match the roundthe-clock availability of a lockerbank. This alternative delivery method is 15
TECHNOLOGY now expanding quickly across the UK. Market leader InPost opened its 1,000th lockerbank in 2014, adding to a network that includes Victoria Coach Station and a number of Transport for London stations. Retailers are now moving to open their own lockerbanks as well as using those operated by third parties. Waitrose, for example, has temperaturecontrolled lockers at London stations, while Amazon has opened its own lockerbanks at sites including Birmingham International Airport.
Ian Jindal, Editor in Chief of Internet Retailing
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October 2015
At the last minute As shoppers grow accustomed to the idea of fast and convenient delivery, their expectations stretch still further. Same-day delivery is now a reality for a number of retailers. Traders such as Argos can fulfil orders from their stores. Via the Shutl service it can deliver orders to nearby homes in as little as 15 minutes, or use its hub and spoke logistics to get a product into the right store for same day collection. The rise of mcommerce Today, customers see mobile as the remote control for the brands they trust. They expect to use their smartphones and tablets to manage information and check stock, whether they’re in a store, on the move or at home. Retailers have responded to this trend and have begun to prioritise business design for mobile first, while incorporating responsive design to ensure ecommerce websites can be seen and used via touchscreen mobile devices. Retailers are raising the bar with logistics, operations and supply chain strategies as well as successfully and creatively exploiting business potential to better serve the customer. The best practices, key trends and discussions
S AT E L L I T E N A V I G AT I O N T E C H N O L O G Y
Tesco Delivery Van
‘As shoppers grow accustomed to the idea of fast and convenient delivery, their expectations stretch still further.’
of the industry will be seen this October at the inaugural eDelivery Conference. The eDelivery Conference, taking place at the Novotel, Hammersmith on 13th October, will highlight the increasingly demanding promises that are made and delivered by the logistics, operations and supply chain industry supporting the overall retailing business model. For further information, please visit: www.edeliveryconference.com. 17
Air Freight Companie
Supply Chain Digital provides the breakdown of the world’s top 10 air freight companies, where figures involved are almost too large to compreh Written by: Sam Jermy
TOP 10
es
f e the hend
19
TOP 10
10.) British Airways British Airways World Cargo has recovered from a three year consecutive decline in freight traffic from 2006 to 2008 and is now working its way back up the list of top global air freight companies. BA carry almost a million tonnes of freight, mail and courier shipments every year to 200 destinations in more than 80 countries.
09.) China Airlines Cargo China Airlines, established in 1959, currently own 21 freighters and have consistently been in the top 10 air freighters in the past decade. However, they have slipped down the list in recent years. Last year they launched a code-share service with Russia’s Transaero Airlines and Hawaiian Airlines. 20
October 2015
A I R F R E I G H T C O M PA N I E S
08.) Singapore Airlines Cargo SIA Cargo offers more than 900 flights a week from its Singapore hub at Changi airport, linking more than 65 cities in over 30 countries across 6 continents with its fleet of dedicated B747-400 freighters and 100 wide body passenger aircraft.
07.) Lufthansa The airline saw an increase in capacity sales to nearly 72 per cent in the first three months of 2014 – an exceptional result compared to the rest of the air freight market. It has also increased its capacities by 1.6 percent in the first quarter this year.
21
TOP 10
05.) Cathay Paci
The Hong Kong based which started all the wa have consistently enha fleet in recent years. No new Boeing 747-400 “E Freighters” and 10 new 747-8F freighters were company since 2008. T Cargo Terminal was als estimated cost of £40 m its clout in the air freigh
06.) Korean Air Cargo Korean Air was founded by the South Korean government in 1962 and long-haul freight operations were introduced nine years later. Icheon International Airport serves as the international hub and with a fleet size of 153, flying to 116 worldwide destinations, Korean Air is certainly one of the big-hitting air freight companies.
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October 2015
A I R F R E I G H T C O M PA N I E S
ific Airlines
air cargo service, ay back in 1946, anced its freighter o less than six Extended Range w-generation Boeing acquired by the The Cathay Pacific so built in 2011 at an million, confirming ht industry.
04.) Emirates According to its official website, Emirates’ 218-strong fleet is one of the youngest in the skies, now serving 142 destinations in 80 countries on six continents. In October 2013, Emirates SkyCargo took delivery of its tenth Boeing 777F, bringing its fleet to 12 freighters. Scheduled freighter services now operate to 51 destinations in 44 countries. A solid top four spot for this company. 23
TOP 10
03.) DHL Aviation A division of DHL Express, which in turn is owned by Deutsche Post DHL, comprises of five main airlines and claims to be the global leader in air freight. Carrying 12 percent of the worldwide market, it also says that is more than twice as much as their nearest competitors.
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October 2015
A I R F R E I G H T C O M PA N I E S
02.) UPS Airlines UPS Air Cargo has been operating since 1982, and in that time it has serviced shipping and logistics functions to 727 airports which covers just about every country in the world. With over 20,000 employees and net revenue of ÂŁ8.9 million in its supply chain and freight arm, UPS is a mammoth air freighter.
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TOP 10
01.) FedEx Express It might not come as a surprise to see FedEx Express occupy first place on the top 10 global air freight list once again. Delivering to more than 220 countries that consist of more than 90 percent of the world’s gross domestic product, FedEx has an unmatched position in the market. So much is the extent of its air freight operations, FedEx is in the top five largest aircraft fleets in the world. Founded in 1971 as Federal Express Corporation, it has grown into the leading transportation company and raked in $27.2 billion in revenue last year. For pallets of freight weighing from 151 pounds to 2,200 pounds, FedEx Express Freight provides 100 percent coverage to any U.S. location in one to three business days. International express freight offers priority service to 50 countries in one to three business days, with economy service to additional locations, usually within five business days.
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October 2015
A I R F R E I G H T C O M PA N I E S
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Thriving In T he n i g K d d o e m t i n U
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QVC UK
Since launching as the UK’s first TV shopping channel, QVC has come a long way, and today it is continuing to spearhead efficient multichannel retailing.
T
he leading multi-channel retailer, QVC, has implemented a range of green initiatives alongside multi-million pound investments in its UK business to achieve an efficient and sustainable supply chain. QVC launched its UK operation in 1993, and at that time was purely visible on satellite to a relatively small audience. Now it has grown to be available in all UK homes through mass TV distribution on Freeview, Sky and cable as well as a significant online presence. Customers can order products on-air, online or on mobile devices at their convenience with 24/7 UK call centre support. Owned by Liberty Interactive Corporation, QVC UK has been going from strength to strength and has launched additional TV channels: QVC Style, QVC Beauty and QVC Extra. The progress has been illustrated in financial
QVC launched its UK operation in 1993
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October 2015
S U P P LY C H A I N
Customers can order products on-air, online or on mobile devices at their convenience
results too; in Q2 this year revenue grew by seven percent on the same period last year. Kieran Murphy, Director of Customer Logistics UK at QVC, said: “We are a multi-channel retailer meaning our methods used to order have become more and more diverse. To place an order we have the straightforward call to speak to a customer service rep, a voice response unit where you can place an order using the item number, and we now also have extensive digital ordering options. “You can see on our live broadcasts whether items are available, in limited stock, or almost sold out, and that’s because our sales platform systems are intrinsically linked with our warehouse management systems (WMS). It is a real-time update of our inventory levels, and of course to deliver good service you cannot sell something you haven’t got. With speedy delivery becoming
1,700
Number of staff employed by QVC
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The right solution for you and your retail supply chain Toll Global Forwarding provides a comprehensive suite of international freight forwarding and advanced supply chain management services. With a proven track record of designing, implementing and executing complex end-to-end fashion and retail logistics solutions, our team is guaranteed to add value to your business.
Our service offering includes: • Air and ocean freight services • Full in-transit, web-based visibility • Bespoke purchase and sales order management systems
• Dedicated account management team • State-of-the-art facilities for garment processing • A full range of value added services at both origin and destination
For more information Tel: +44 (0) 20 8818 7840 Email: sales.uk.tgf@tollgroup.com www.tollgroup.com/tollglobalforwarding
QVC UK
S U P P LY C H A I N
more ingrained with shoppers, customers don’t want to be kept waiting very long to receive the products they have bought.” Efficient operations The head office for QVC’s UK operations is in Chiswick, West London, where its broadcasting facilities and buying and planning functions predominantly reside. The 31-acre operations and distribution centre is located in Knowsley, Merseyside, and most recently has seen investment to automate parts of the site, such as the technology involved with WMS, storage and retrieval systems, as well as conveyors and automated packing solutions. The centre has a 30,000-pallet automated sorting and racking system that was stage five of the facility build.
SUPPLIER PROFILE
Distribution Centre, Merseyside
TOLL GLOBAL FORWARDING
Toll Global Forwarding provides a comprehensive suite of international freight forwarding and advance supply chain management services. Our service offerings range from complex supply chain solutions through to port-to-port freight forwarding movements. Headquartered in Hong Kong, we have a worldwide network of more than 120 offices in 28 countries through Australia, New Zealand, Asia, the Middle East, Europe, Africa and North America. Toll Global Forwarding is a division within Toll Group, which has a network of 1,200 sites in over 50 countries
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QVC UK
Key Personnel
Kieran Murphy Director of Customer Logistics UK, QVC
Brysdales is a major QVC UK partner and supplies a wide range of shelving, racking and storage solutions to suit a variety of specialist needs. The working relationship has continued to go from strength to strength for more than seven years. Initially the operations centre activities were outsourced to a third party logistician (3PL), and then this was insourced in 1996 upon completion of the first stage of the centre. Imported shipments are handled by QVC UK’s freight forwarding partner, Toll Global. In 2010 the company introduced a ‘Zero to landfill’ policy, diverting its waste to a facility where any remaining residual waste after recycling
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S U P P LY C H A I N
is turned into energy. Waste is segregated effectively onsite on Merseyside: so far this year 74 percent of generated waste such as card, plastic, paper, batteries has been effectively segregated for recycling onsite. Through various initiatives and capital investments between 2007 and 2014 the company has also reduced its electrical consumption by 35 percent. This includes using energy efficient LED lighting around the distribution centre, and upgrading the heating system to reduce power usage. Murphy said: “Currently 24 percent of the waste that’s disposed of as general waste is recycled at our waste contractor’s designated transfer facility. The remaining two percent goes to the heat to energy facility. In 2014 we were awarded a Carbon Trust Standard for Waste; an independent standard which certifies organisations that measure, manage and reduce their waste output, year on year. We are on target to achieve recertification for 2015 too, which is very pleasing. “Our supply chain visibility system is designed to allow everyone to know exactly where a shipment is in its transmission from manufacturer to end customer. We are looking to define a much more detailed system by creating a concept where we can track an individual product, its size and the quantity of the shipment, and where it is being shipped from. “We’ll normally have a series of orders that are delivered for a particular one or two hour show so it is imperative to know where that
“In 2014 we were awarded a Carbon Trust Standard for Waste; an independent standard which certifies organisations that measure, manage and reduce their waste output, year on year. We are on target to achieve recertification for 2015 too, which is very pleasing” – Kieran Murphy Director of Customer Logistics UK, QVC
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QVC
The supply chain visibility system is designed to allow everyone to know exactly where a shipment is in its transmission from manufacturer to end customer
shipment is. By the time we put the show on TV we’ve been able to get the goods freighted, delivered, received, checked and loaded into our inventory. This is absolutely crucial because it is timed to a real-time event on TV, so we need real-time updates on the status of goods.” Once items are sold, QVC UK uses preferred carriers such as Hermes, Whistl and Royal Mail for the last mile. DX and XDP respectively handle the secure and big and heavy express deliveries.
Once items are sold, QVC UK uses preferred carriers such as Hermes, Whistl and Royal Mail
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October 2015
People Management QVC UK has 2,000 employees, 1,500 of whom are based in Knowsley, making it one of the largest employers in the area. It has built a reputation around environmentally-friendly thinking and has fostered a positive, high-performing staff culture. Murphy said: “The most effective channel for attracting new QVC team members is through employee referrals. In 2013 we changed our
S U P P LY C H A I N
approach to ‘Talent Attraction’ by creating an in-house recruitment team to make the transition from agency based recruitment to direct sourcing and attraction. We also developed our QVC Employer identity. As a result, last year 79 percent of our new QVC team members were recruited either internally or directly by our in-house team. “When it comes to retention, we are committed to creating the best employee experience for our people. We achieve this through continued significant investment in learning and development, supporting our people in flexible working hours and focusing on health and well-being. Staff recognition is attained through a variety of initiatives such as our peer-to-peer recognition programme ‘Making a Difference’ and other quarterly events.” QVC UK has also launched its own career channels on Facebook, Twitter, LinkedIn and external job websites. Its strongest areas of attraction are Media Broadcasting and TV production, Contact Centre and Distribution Centre. Outside of internal training and leadership programmes (such as Six Sigma), individuals have the opportunity for other educational training, such as NVQs, Further Education and soft skills sessions. All these components underpin an environment of continuous improvement at QVC UK, and numerous employees have progressed to advanced roles both in the UK and globally, as a result.
Company Information INDUSTRY
Supply Chain HEADQUARTERS
Merseyside, UK FOUNDED
1993 EMPLOYEES
1,700 REVENUE
$730 million PRODUCTS/ SERVICES
Online Retail, Teleshopping
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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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C
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
S U P P LY C H A I N
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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C O N TA I N E R S H I P S
On track to environmental compliance
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October 2015
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.
S U P P LY C H A I N
He said: “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. “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.
“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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C O N TA I N E R S H I P S
The group is preparing for increased volumes
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
51 years serving industry
Established 1964
PROUD PARTNER ON THE IRISH SEA FOR CONTAINERSHIPS.
Kilgrange Ltd T/A
M
hon cMa
Transport & Wareh
ous
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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
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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
S U P P LY C H A I N
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. 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 transporting consumer goods, automotive parts and alcohol from other European countries
“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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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
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essentially so 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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Aqaba Container Terminal (ACT)
Logistics of the Levant Written by: John O’Hanlon Produced by: Dennis Morales
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A Q A B A C O N TA I N E R T E R M I N A L ( A C T )
Politically, economically and socially speaking, Jordan has always been a hub for Middle East trade: we speak to Jeppe Nymann Jensen, CEO of Aqaba Container Terminal about investments, and the best practices being introduced by parent company APM Terminals
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A
qaba Container Terminal (ACT) is a joint venture between Aqaba Development Corporation (ADC), the Jordanian Government’s central development vehicle for the Aqaba Special Economic Zone (ASEZ), and APM Terminals, one of the world’s largest global terminal operators. In 2004, APM Terminals signed a Terminal Management Contract with ADC, taking over terminal management and operations. In 2006, a 25-year Joint Development Agreement (JDA) was signed between ADC and APMT. Under the contract, APM Terminals Jordan was appointed to operate, manage and market Aqaba Container Terminal. Operations The joint venture signed in 2006 represented the first Public Private Partnership (PPP) initiative launched by ADC as part of its programme to rehabilitate and expand the port of Aqaba and the wider logistics and transport infrastructure within the ASEZ. This is the model that Jordan has chosen to develop its industries and take full advantage of its pivotal role in the Middle East. Its importance was emphasised by King Abdullah II when he opened the World Economic Forum on the Middle East and North Africa at the Dead Sea in May 2015 and presented his ‘Jordan Relaunched’ vision. A range of investments are needed, he said, in areas from agriculture and urban development to
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RTG crane operating at the container yard
energy, transportation and water. In this context it is impossible to over-emphasise the importance of the container terminal, as it is the only one in the country, so the majority of goods entering or leaving the country come through Aqaba. “Aqaba is already a key facility in the region and the preferred gateway for the Levant; we currently serve most of the world’s top shipping lines. The investments that ACT has been making over the past years are to ensure that Jordan and the entire Levant region have a proficient, efficient and professional terminal to support the Supply Chain.” says Jeppe Jensen. “The current political circumstances in the surrounding countries has made the market unstable with the borders surrounding Jordan being repeatedly closed.” Since the 15th July closure of the Karameh
1,000 Number of staff employed by Aqaba Container Terminal (ACT)
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A Q A B A C O N TA I N E R T E R M I N A L ( A C T )
“However you look at it, we will be a natural partner in any transportation solution for Iraq” – Jeppe Nymann Jensen, CEO of Aqaba Container Terminal 52
October 2015
crossing, 20 to 30 percent of transit traffic that used to flow into Iraq from Jordan has dried up even further, but in the longer term, as Jordan’s internal infrastructure improves and the security situation in western Iraq stabilises, the opportunities for Jordan and the region are positive. “However you look at it, we will be a natural partner in any transportation solution for Iraq.” In the meantime, there are some comforts from the growth in Jordanian exports. With Jordan
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unable to export goods directly to countries like Syria and Iraq, ACT has witnessed a significant increase in export traffic, offsetting to some extent the downturn in import volumes. It was in 2004 that APM Terminals, the Netherlands-based company whose network of 62 operations through 38 countries took over the management of the terminal. At the time, heavy congestion meant that vessels were experiencing significant delays to operations.
The yard, and the Gulf of Aqaba
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AQABA
THE MIDDLE EAST INVESTEMENT HUB ON
ADC was launched in 2004 to be the central development arm for the ASEZ. ADC is owned by the Government of Jordan and the Aqaba Special Economic Zone Authority (ASEZA) and is mandated to develop ASEZ, build new infrastructure and required superstructure, expand existing utilities, create necessary business enablers for ASEZ and manage/operate its key facilities.
Tel +962 3 203 9100 • Fax +962 3 203 9110
N THE RED SEA
E-mail info@adc.jo • Website www.adc.jo
SUPPLIER PROFILE
AQABA DEVELOPMENT CORPORATION
Management: Eng. Ghassan Ghanem (CEO) Tel: +962 3 203 9100 Fax: +962 3 203 9110 Email: info@adc.jo www.adc.jo
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Jensen explains: “We made some significant investments in our assets, fine-tuned the IT systems, trained the people and revived the terminal to an acceptable level within two years.” The 25 year build-own-transfer (BOT) joint venture was set up in 2006 and to date more than $300 million has been invested in the terminal. Ageing equipment was replaced, and in the most recent investment of approximately $100 million, ACT has increased the quay capacity by 460 metres to 1,000 metres, along with increasing its yard capacity for further Rubber Tyred Gantry (RTG) stacking areas; this has resulted in a doubling of annual container capacity of the terminal. Gantry Crane Moves Per Hour (GMPH) has also risen from 20 moves an hour in 2007 to 29 in 2013. Today the company is achieving a consistent performance of up to 32 GMPH. “We have the opportunity to extend the quay by another 200 metres to the northern side of our terminal,” says Jensen. “We can also invest further in our yards where we have some opportunities to expand.” Turnaround through technology To manage the movement of cargo through the terminal, ACT has been using Navis technology to increase capacity, optimise operations, increase efficiency and improve productivity. “We have recently upgraded to Navis N4, a very sophisticated and modern technology platform,” he says. “We have great hopes for that. It will fine tune our operations in many ways. It will give
Jeppe Nymann Jensen
“We have recently upgraded to Navis N4, a very sophisticated and modern technology platform” - Jeppe Jensen, CEO
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A Q A B A C O N TA I N E R T E R M I N A L ( A C T )
RTG moves have gone up 33 percent since 2007
better yard handling capabilities and reduce our truck turnaround times. A lot of efficiencies will come out of that which will result in an improvement in our productivity and of course enable us to meet our customer’s needs ” These systems pave the way for an introduction of automated gates. In 2013, over 333,000 trucks were handled through ACT’s gates, and a modern automated system would considerably shorten processing and turnaround times. “Another investment I would like to see made would be in a trucking appointment system.” APMT’s business does not stop at the terminal. Aqaba Logistics Village (ALV), a subsidiary JV concerns itself with the logistics side of the business, warehousing and forwarding. In this business APM Terminals holds a 60 percent interest and Kawar Group, a local business with which APMT has been working for many years, the remaining 40 percent. “This business is also somewhat stalled by the situation in Iraq and we are anxiously awaiting some opening up of trade in that direction,” says Jeppe Jensen. A ‘single window’ system is something he’d very
‘APMT’s business does not stop at the terminal. Aqaba Logistics Village (ALV), a subsidiary JV concerns itself with the logistics side of the business, warehousing and forwarding.’ 58
October 2015
S U P P LY C H A I N
much like to see from the authorities in Jordan. This allows shippers to submit regulatory documents like customs declarations, import/export permit applications, and other supporting documents such as certificates of origin and trading invoices at a single location and to a single entity. “That would hugely benefit the entire supply chain. It will also benefit us later when the Iraq trade is up and running if traders can easily transfer their containers across borders and only have one document that goes all the way through with the trucks.� Nearly all freight traffic in Jordan is carried
ACT has increased its quay capacity from 460 metres to 1,000 metres
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A Q A B A C O N TA I N E R T E R M I N A L ( A C T )
Sunset over the container terminal
100m The amount of Revenue in JOD generated by Aqaba Container Terminal (ACT)
by trucks but rail links within the country and across its borders would be a huge step for trans-Jordanian trade, he believes. “One of the bigger investment proposals made by His Majesty King Abdullah at the WEF related to rail systems. With initial plans to implement a rail network from Aqaba to strategic service points around the country closer to Amman. With the final part of the project connecting those railways to the bordering countries.� The Jordanian Prime Minister Abdullah Ensour recently met a delegation from the China Railway Oriental International Construction Company, with a view to getting this project implemented. Talent Management ACT employs more than 1,000 people. Terminal operation is a technical business so
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APMT’s standardised training programmes come in very useful. All new employees on the operations side are put on a comprehensive training programmes. “We are one of the biggest employers in the area,” emphasises Jensen. “We have a high retention rate and we do well in our annual employee satisfaction surveys. On pay we are in the upper quartile in the country, and that also makes us a good place to work!” ACT’s CSR policy stands on three pillars: education, environment and local community. “We focus on the Aqaba free zone area. We support many of the schools and students with equipment and scholarships. Our employees volunteer on projects to clean beaches and the like, which gets us closer to the local community. We aim to be a good corporate citizen, and a responsible investor,” Jensen insists. Projects include support for the King Hussein Cancer Centre, and the continuing annual ‘Ekfal Taleb’ campaign, now in its fourth consecutive year, providing school supplies to hundreds of students in Aqaba and the surrounding villages. Whatever the political situation in neighbouring countries, Aqaba and Jordan will be pivotal to local trade. The investments made by ACT, the improvements and best practices introduced, are all justified by the existing volumes of traffic. However,” ACT are here for the long term, as the business grows, our customers and supply chain partners know we will be ready to support them.”
Company Information I N D U S T RY
Logistics HEADQUARTERS
Jordan FOUNDED
2006 EMPLOYEES
1,000+ REVENUE
JOD 100 million PRODUCTS/ SERVICES
ACT is Jordan’s only container port and the second busiest facility on the Red Sea. Its strategic position at the crossroads of three continents and four countries makes it the preferred gateway for the Levant region
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RSA Logistics’ 55 Million Dollar Expansion Written by: John O’Hanlon Produced by: Dennis Morales
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RSA LOGISTICS
RSA Logistics is a fast-moving company that has grown its revenues by 44 percent over the last three years: we talk to co-founder and Managing Director Abhishek Ajay Shah about his plans to capture further market share RSA Talke Facility
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E
ntrepreneurship requires hard work, vision, dedication. It is also useful if the entrepreneur is in the right place at the right time, and if he or she has a supportive network. Abhishek Ajay Shah certainly ticks a number of these boxes; he comes from an entrepreneurial family, which developed and leased out warehouses in the UAE and it was with their support that he came to the UK to study civil engineering and Business Management at Warwick University. It was there that he developed a fascination for supply chain management, so after a spell learning its practicalities in Singapore he returned to Dubai determined to start his own business. He quickly perceived a gap in the market for a competent asset-based logistics services provider in the rapidly growing city state. “They were just starting to develop Dubai World Central
S U P P LY C H A I N
Fast and accurate picking
(DWC) together with Al Maktoum International Airport, which aims to be the largest airport in the world. We approached them in 2006 and the next year became the first company to sign a lease there.” Within a year construction of a 25,000 square metre facility had commenced. Filling the gap The size of this warehouse was justified by the huge potential of DWC and the dearth of affordable space at DWC for third party logistics, or 3PL services. “We created a new brand and a new company, RSA Logistics,” says Shah, “with the objective of really differentiating ourselves and being the first mover into this newly developed zone.” However, the new company got off to a slow start, as the planned 2008 opening of Al Maktoum International Airport was affected by the recession and the
180 Number of staff employed by RSA Logistics
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SSI SCHÄFER is the world’s leading supplier and manufacturer of high quality storage and materials handling systems. Products are ranging from standard industrial racking & shelving to fully automated turnkey warehouse solutions.
www.ssi-schaefer.com
RSA LOGISTICS
S U P P LY C H A I N
first cargo flight did not land till June 2010. Even when RSA Logistics opened its doors for business in March 2009, customers were shy of the newcomer. “There was a lot of customer education to be done and it was costly and time consuming for us to show that we could add value to their supply chain,” he reminisces. Nevertheless, he soon made up for the fact that RSA had yet to make its name by collaborating with large multinational asset light freight forwarders. “These are global companies that do not believe in building their own facilities but prefer to work with companies like ours,” he explains. “They had the customer base, we had the operational ability on the ground and the local know how. Together we provide a unique contract logistics solution.”
SUPPLIER PROFILE
Loading Bay
SSI SCHÄFER
Matthias Höwer, GM Middle East and Africa Address: SSI Schaefer Systems International DWC LLC P.O. Box 37600 | Dubai Logistics City – Plot WB54 Dubai World Central, Dubai | United Arab Emirates Tel: +971 4 8048 100 Fax: +971 4 8879 305 Email: info.ae@ssi-schaefer.com
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RSA LOGISTICS
Land Transportation and Open Yard
At the same time, to differentiate RSA from any competition, the decision was made to invest heavily in technology. “Customers today want quick, easy and agile solutions that integrate with and talk to their own systems. We developed our own software and programming, and that was a great success and a big contribution to our story.” Focusing on the petrochemicals market, the company set out to obtain chemicals handling accreditations not widely available in the UAE, a move that brought in its first multinational customers as Dubai started to realise its investment potential and Shah’s patience paid off when the company became self sustained in 2012. Since then it has experienced three years of solid growth.” Partnership for progress It was already apparent by the end of 2011, 68
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Shah continues, that handling chemicals would be a mainstay of the business going forward. All chemicals require specialised treatment at every stage in the supply chain, so he employed a specialist consultant and set about adapting the facility, as a result of which a considerable volume of business was being transacted by 2012. “That’s when our biggest customer at that time put us in touch with the Alfred Talke group from Germany, which already has a presence in Saudi Arabia, Qatar, Oman and Bahrain. This was the start of our positioning as a specialist 3PL provider for the petrochemical industry, something that simple did not exist before.” In May 2013 the partners created a 50/50 joint venture company RSA-Talke. In February 2014, a state-of-the-art warehouse, specifically designed to meet the needs of the chemical and petrochemical industries and offering an impressive capacity of 19,000 pallet spaces for class 3, 4, 5, 6, 8 and 9 dangerous goods, coupled with tailor-made freight services, was opened at DWC. It complies with the highest safety, environment protection and quality standards, such as the National Fire Protection Association (NFPA) standards and the EU’s ATEX guidelines on explosion prevention. Other verticals being addressed by RSA Logistics include spare parts for aerospace and automotive clients within a recently opened a modern integrated warehousing facility, and chilled foodstuffs at a state-of-the-art multi-
Warehouse Aisle
“We’d like to see the temperaturecontrolled side of our business expanded and I’d expect to have added frozen goods handling facilities by the end of next year” – Abhishek Ajay Shah, Managing Director
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RSA LOGISTICS
Key Personnel Chemical Warehouse
Abhishek Ajay Shah Managing Director Abhishek Ajay Shah is Managing Director of RSA Logistics and a member of the board of directors at RSA TALKE. Born in Kenya, he took a MEng degree, in Civil Engineering with Business Management, from Warwick University in the UK and worked in logistics for a year in Singapore before returning to the UAE to join the family business, subsequently setting up RSA logistics in 2007 70
October 2015
temperature warehousing facility which is ISO certified and rated 5-star by the Dubai Multi Commodities Centre. “We’d like to see the temperature-controlled side of our business expanded and I’d expect to have added frozen goods handling facilities by the end of next year.” Further horizons So in less than seven years of operation, the organisation has expanded at a rapid pace: it has seen a 44 per cent growth over the last three years, a growth rate that he is comfortable to continue as his target for the outlook period. Current employee levels of 180 are expected to increase to the region of 250 in the next two years, and a significant amount of this growth will be outside of the UAE. In 2013 RSA established itself in the fast expanding East African market when it acquired a local company Trade Winds International
S U P P LY C H A I N
based in Kenya, the country of Abhishek’s birth. It is currently investing more than $5 million in an integrated warehousing facility there, with an eye on the fast-moving consumer goods (FMCG) market and for existing customers in the UAE that would like to set up a hub in East Africa. He believes there is a defined need in East Africa for 3PL and outsourced logistics, and also identifies an opportunity in India for the expertise that RSA has developed in hydrocarbon logistics. By 2018 he would like to see a thriving business established both in Kenya and on the subcontinent of India. Though the company has budgeted to spend a further $55 million over the next three years in improving and extending its Dubai chemical and petrochemical facilities and on taking its cold storage facilities to the next level, it will also be developing its work in what he calls ‘on-site logistics’ – managing the assets of clients to improve the inventory management systems within their own facilities and allowing them to more effectively fulfil their orders and manage their supply chain. Asked about the reasons for the success of the company to date he identifies the people, and the efforts they have put into training and policy alignment. “Everyone is now on the same page, and getting behind our vision for the business, adopting lean principles and going the extra mile for the customers and their colleagues.”
Company Information INDUSTRY
Supply Chain HEADQUARTERS
Dubai, UAE FOUNDED
2007 EMPLOYEES
180 REVENUE
62 million PRODUCTS/ SERVICES
Logistics
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CONNECTING THE AFRICAN CONTINENT Written by: Lucy Dixon Produced by: Richard Deane
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T R A N S T E C H L O G I S T I C S ( P T Y ) LT D
Transtech Logistics explains why its strategy of offering clients a complete freight solution sets it apart from the rest
130 Number of staff employed by Transtech Logistics 74
October 2015
“
We don’t look at ourselves as simply a transporter or a logistics firm, we are a complete service provider,” said Transtech Logistics’ business manager, Chokani Mhango, describing the company’s philosophy and one of the biggest factors behind its success. Founded in 1997 in Malawi, Transtech Logistics is a freight specialist, offering comprehensive and integrated solutions throughout South Africa, Zimbabwe, Zambia, Mozambique and, of course, Malawi. The company operates a fleet of just under 100 Freightliner trucks, employing the same number of drivers and 40 additional staff at its offices in Lilongwe (Malawi), Lusaka (Zambia), Harare (Zimbabwe) and Johannesburg (South Africa). The South African office, which is now also the head office, is a relatively recent addition, opening in 2013. He explained: “I am an economics scholar and started my career in banking. But after six years I was ready for a new challenge and Transtech’s Managing Director approached me with his plans to open an independent office in South Africa. The rest, as they say, is history.” Transtech’s vision is to facilitate its customers’ entire supply chain, meeting the demand for both manufactured products from South Africa and beyond and various raw materials and agricultural products from southern Africa. Mhango said: “We are positioning ourselves in this very exciting space, being able to
S U P P LY C H A I N
connect our southern African clientèle, with both SA and international manufacturers, and at the same time connecting agricultural exporters in Malawi, Zimbabwe and so on with our international customers. That’s why our slogan is ‘Connecting the African Continent’.” And as the South African office starts its third year, it’s an exciting time for the company. “While the business as a whole has been operating for 18 years, this office is the ‘newbie’, so the first three years have been very important in the getting the right personnel in, getting the right structures in place and getting the right client base - building a structure for business,” said Mhango. Attracting the right personnel is a key element of the company’s strategy, particularly as
Transtech’s vision is to facilitate its customers’ entire supply chain
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T R A N S T E C H L O G I S T I C S ( P T Y ) LT D
“People are the heart and soul of Transtech” - Chokani Mhango
the logistics industry is very labour intensive. People are the heart and soul of Transtech and all our personnel are critical to the vision of the organisation in order to cohesively run the fleet on a daily basis. “As management, we strive to create a corporate work environment that is second to none. Our recruitment policy endeavours to attract highly qualified individuals with a passion for this industry and we, in turn, strive to provide our personnel with a very exciting and challenging corporate environment that promotes free thinking, career growth and self-improvement.” Transtech understands the importance
Customs Clearing • Forwarding Air Freight • Expertise Advise Hyperclass Investments T/ A Asante Sana freight Services is a locally registered company according to Zimbabwe regulations, specializing in other if not all aspects of shipping based on client’s requirements. These are, but not limited to Customs clearing, forwarding, transport, tracking, monitoring. T +263 286 22217 / 286 23210 F +263 286 23055 trackingbb@asante-freight.com www.asante-freight.com Skype Mahlahla.panganai2 +263 783 729554 / 7165 75509
Stand No.540 Pound Road, Next to Peter’s Motel, P.O Box 104, Beitbridge
S U P P LY C H A I N
of training and education for its staff, with some of the office team taking part in postgraduate programmes and regular training for all employees. Mhango said: “As a very wise person once told me, a person who graduates today and stops learning tomorrow is uneducated the day after. And in the global economy that we’re in today, we’re faced with new ways of conducting business on a daily basis and it is therefore critical that our teams are up-to-date with latest systems, the new procedures, the different regulations and all the new opportunities that business of today demands.” This policy really helps when it comes to retaining great staff too, as they recognise Transtech as an employer that can satisfy their needs beyond a salary. In addition to a professional and dedicated staff, Mhango also believes that technology is crucial to Transtech’s success as he believes that, in the transportation industry, technology can set you aside from everyone else. An example is how the company makes use of tracking technology. “One of the premier needs of our clients is tracking; they want to know where their cargo is at any time,” he said. “There is an automated tracking alert that goes out to clients twice a day, at 7am and 4pm. In addition to this, our operations team provide our clients with a more comprehensive report detailing all the events occurring on the date in question.” Transtech Logistics also has a new website in development that will allow its clients to log in at any time of day
“While the business as a whole has been operating for 18 years, this office is the ‘newbie’, so the first three years have been very important in the getting the right personnel in, getting the right structures in place and getting the right client base - building a structure for business” – Chokani Mhango, Business Manager
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T R A N S T E C H L O G I S T I C S ( P T Y ) LT D
“In the global economy that we’re in today, we’re faced with new ways of conducting business on a daily basis and it is therefore critical that our teams are up-todate with latest systems, the new procedures, the different regulations and all the new opportunities that business of today demands.” – Chokani Mhango, Business Manager
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Transtech understands the importance of training and education for its staff
and track the cargo themselves, making use of the state-of-the-art tracking units. Furthermore this software can also asses the performances of the trucks, including fuel consumption, which then allows the workshop team to identify any concerns and defects as the trucks are coming in and thus turn them around very quickly. Road transport is a critical component for any sort of business in southern Africa and this is reflected in the type of projects Transtech is currently working on, which include a coal mine in Mozambique and a new railway connecting Malawi and Mozambique. It is also working on a road construction project in Malawi, transporting raw materials such as bitumen. A diverse range of projects and clients again points back to Transtech’s determination to provide a holistic solution for anyone who has cargo to move,
S U P P LY C H A I N
incorporating every aspect of the supply chain. Mhango added: “Transportation is just the first step of what we do here at Transtech. We strive to provide our clientele with a more comprehensive solution. All cargo transported on our trucks is considered bonded which then allows our clients to defer duty payments until the consignment arrives at its final destination.” This means that cargo doesn’t get delayed by customs officials which may in turn incur storage costs. So, with its 20th anniversary approaching in 2017, what does the future hold for Transtech? As well as growing its fleet in the next few months, the company is also focusing on other markets, including domestic routes and consolidated work. A new department focusing on consolidation has been opened, as Mhango explained: “We have started to target private clients who may only have five or 10 tonnes of cargo to move. We have a warehouse on our premises and can consolidate all their products and once we secure enough cargo to make a full truck load we are good to go. We are currently dispatching two consolidated trucks a week but we are looking to improve that statistic to at least five a week by 2016.” In a difficult economic environment, it seems that Transtech is rising to the challenge. Mhango concluded: “We are a growing organisation but we cannot just be a single-solution firm, we have to stand out from the rest, that is the only way we can achieve growth.”
Company Information INDUSTRY
Supply Chain HEADQUARTERS
Johannesburg, SA FOUNDED
1997 EMPLOYEES
130 REVENUE
Not Disclosed PRODUCTS/ SERVICES
Air Cargo, Logistics
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Mar
Delivering solutions industry w
Supporting over 49,000 investigator sites in more than 15 temperature-sensitive and life-saving pharmaceutic
Written by: Stephanie C. Ocano
rken
for the life sciences worldwide
150 countries, Marken globally transports and distributes cals, clinical trial supplies, and specimen collections
o
Produced by: Jason Wright 81
MARKEN
Marken
T
o remain a world leader in supply chain logistics for 35 years, it takes determination, experience, the right team, and continuous innovation, all of which Marken has no shortage. By integrating depot and logistics services into solutions that extend the reach of clinical trials to even the most remote regions of the world, Marken has bridged the distance between the patient and the essential resources of life science companies. “Over the last four years, we have continually remained ahead of our competition,� said Wes Wheeler, 82
October 2015
CEO of Marken, citing technology, investments and personalized services as the driving factors during a recent interview. Having been in the business of operating facilities and companies for over 35 years, Wheeler knows more than just a thing or two about successfully running an organization. With GlaxoSmithKline and Exxon Mobile on his impressive resume, Wheeler was initially attracted to join Marken because of its positive reputation, global positioning and efforts for expansion. These were also influencing factors for Ariette van Strien to join
S U P P LY C H A I N D I G I TA L / H E A LT H C A R E G L O B A L
Bio System Boxes
Marken, CCO, and Dan Bell, VP for Regulatory Compliance and Technical Affairs. “The initial attraction was the potential, and the continued attraction is the success that we have,” said van Strien, whose primary responsibility is to drive Marken forward with the right clients. “Marken is the best company around for specialized logistics, and I wanted to work for the company at the top of the list and apply my own knowledge,” said Bell. All three executives take pride in working for a specialized logistics and supply chain provider that is solely dedicated to pharma and the life sciences industry. Identifying themselves as a vital link to transport pharmaceuticals to patients, Marken as an organization plays an important role within the clinical research industry for supply
“We don’t just speak logistics, we speak pharma; we are not just transportation people, we are pharma people” – Wes Wheeler, CEO
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Global Temperature-Controlled Packaging Solutions
imperium
™
pallet Shipper solutions Imperium™ Elite ● 144 hour 2-8˚C universal design ● Advanced phase change materials for robust thermal protection ● Vacuum-Insulated panels for maximum performance duration
Imperium™ Plus ● 120 hour 2-8˚C universal design ● Advanced phase change materials for robust thermal protection ● Economical EPS insulation
Imperium™
● 96 hour 2-8˚C seasonal design
Patent Pending
● 120 hour 2-25˚C universal design ● Economical water-based refrigerants ● Economical EPS insulation
FORTIS
PCm six Shipper solutions
● Universal pack-outs for 2º to 8ºC shipments ● Designed with PCM6 refrigerant brick cassettes ● Domestic and international solutions ● Multiple payload sizes ● Pre-qualified to ISTA 7D ● All refrigerants are pre-conditioned at a single temperature ● Neopor® coolers for added insulation and stability ● Global availability
Inmark Headquarters 675 Hartman Road Suite 100 Austell, Georgia 30168, USA Tel: +1 770 373 3300 Sales@InmarkPackaging.com
Europe Office Inmark Europe BV Lissenveld 49 4941 VL Raamsdonksveer Netherlands Tel: +31 (0)162 748 100 InmarkEU@InmarkPackaging.com
For more information, visit www.InmarkPackaging.com
Asia Office Inmark SG Pte. Ltd. 17 Tuas Avenue 9 Singapore 639197 Tel: +65 6861 7108 InmarkAP@InmarkPackaging.com @InmarkPackaging Company/InmarkPackaging InmarkPackaging
MARKEN
S U P P LY C H A I N D I G I TA L / H E A LT H C A R E G L O B A L
chain services related to drug development and disease control. With over 50,000 temperaturecontrolled shipments each month, and a staff of 600+ individuals across the globe, how does one company answer the needs of a global population while consistently advancing amidst a hypercompetitive market? Step 1: Pursue innovation Marken constantly reviews technology and new services to ensure they are meeting the needs of clients and the industry trends.. Marken consistently and
SUPPLIER PROFILE
constantly evaluates the technology of the market’s packaging solutions. As a global provider, entering geographic locations with high or inconsistent temperature ranges can pose a threat to the quality and efficacy of materials being shipped. It’s important to seek out packaging solutions that offer longer duration of temperature stability as well as higher payload capacity. In order to maintain the stability of drugs, blood samples and other biologic materials, thermo-isolating materials are integrated into specialty outer packaging so that clients can rest assured knowing
INMARK PACKAGING
Inmark Packaging was incorporated in 1975 with a focus in the distribution of glass, plastic and metal containers for various industries, including: food, beverage, cosmetic, chemical and coatings. In the ensuing four decades, while our original focus remains a core aspect of our business, we have expanded greatly to meet evolving needs in the marketplace. Currently operating out of six (6) locations in the United States, one (1) location in Singapore and one (1) location in the United Kingdom, Inmark has distribution across North America, Asia, United Kingdom and South America.
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We’re more than a cool box. We’re your partner. our packaging experts are ready to solve your most urgent cool chain needs
Advanced insulation & PCM
temp
Frozen | 2-8°c | crt
Prequalified protection
Modular design
Universal pack-out Optimized size & weight
With your specific payload and shipment requirements in mind, we offer custom and off-the-shelf packaging solutions utilizing advanced technologies. - Reliable package performance – works every time - Designed to be simple – easy to use - Efficient – optimized size and weight - Low total cost of ownership – AeroLoop reuse program www.americanaerogel.com | +1 585 328 2140 | info@americanaerogel.com
MARKEN
S U P P LY C H A I N D I G I TA L / H E A LT H C A R E G L O B A L
their materials will sustain their temperatures for longer periods of time without interruption. “More efficient insulating materials used in thermal packaging also allows for a higher payload by placing more product in less boxes. This can maintain or reduce shipping costs,” said Bell. Significant investments have also been made to internal IT systems. With two main software platforms— Marken Solo and Marken Maestro— managing the inventory of drugs and tracking shipments is truly state of the art. “Managing shipments from start
to finish is critical, not just to us but to our clients as well,” added Bell. “Today’s technology includes integration of remote GPS devices into the IT systems.” Bell explains that Marken incorporates GPS tracking systems to remotely monitor not just the location of a shipment, but the environmental factors such as temperature, humidity, pressure, shock, and vibration as well. “We are constantly looking for what’s going to make our clients’ lives easier, giving them the assurance that their shipments are being handled in an appropriate
SUPPLIER PROFILE
AMERICAN AEROGEL
More Than a Cool Box. A Partner. American Aerogel provides life science companies with high quality insulated packaging solutions for the protection of temperature sensitive payloads. Since the beginning, we set out to revolutionize temperature sensitive shipping with our high performance products. In addition to a standard product range, we have a team of dedicated engineers ready to solve your most difficult shipping challenges by designing, building and qualifying custom solutions for your specific needs. Our customers have been consistently amazed at how well our products protect their contents from unpredictable, harsh, and seasonal ambient conditions – a track record we are proud of. Website: www.americanaerogel.com w w w. m a r k e n . c o m
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C O M PA N Y N A M E
Marken’s kit production service is a turnkey solution allowing your biological samples to be processed with the speed, service and quality your clinical trial demands.
“[Finding a solution] has become a part of our DNA” – Ariette van Strien, CCO
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manner,” said Bell. “In the case of software, Marken and our clients have complete visibility both in real time and in terms of metrics,” he added. “Both of our systems allow us to extract data and make quicker, more meaningful decisions about our operations.” While the pharmaceutical industry in general is behind in integrating the latest technology trends, Marken separates itself from competition by maintaining the leadership role in driving the
SECTOR
industry forward to offer the best services possible. “We want to make sure that Marken remains ahead of the curve, and using technology allows us to make smart decisions and deliver the best value,� concluded Bell. Marken is a leader in direct to patient shipments for the pharmaceutical industry so that shipments can be handled without compromising a clinical trial protocol. Patient recruitment and retention are two of the biggest challenges, but bringing the
Ariette Van Strien
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Reusable thermal packaging solutions protecting your products and patients Next Generation VIP Thermal Packaging •
Product line: from small modular boxes to double pallet containers • Suprior thermal performance without any external energy supply • Passive temperature control for ranges from less than -50C to CRT • Qualified performance from 24 to 230 hours
va-Q-tec USA Inc . 1 Meadowlands Plaza . Suite 200 . East Rutherford . New Jersey Tel. 201-340-2727 . Fax 201-340-2601 . www.va-Q-tec.com . usa@va-Q-tec.com
MARKEN
S U P P LY C H A I N D I G I TA L / H E A LT H C A R E G L O B A L
trial to the patient’s home increases willingness to participate and may provide better retention and compliance. “Marken will continue to grow, adapt, and evolve our Direct to Patient services for the industry. Client feedback indicates that the patient-centric focus is on a fast pace of growth. In fact, Marken was recently granted permission by the government to deliver the first direct to patient shipment of clinical drug product in Korea. This precedent-setting shipment has allowed several patients in South Korea to continue receiving their clinical trial drugs during the outbreak of Middle East Respiratory System (MERS),” Van Strien said
Dan Bell
Step 2: Operate with excellence
SUPPLIER PROFILE
VA-Q-TEC AG
va-Q-tec AG is a global high-tech company operating in the field of thermal insulation. The company’s mission is “Creating energy efficiency for a clean environment”.
Located in Germany, UK, USA, Korea and Latin America they serve global customers in the pharmaceutical, logistics, construction, automotive and home appliance industries. For 15 years, va-Q-tec has been the global leader in providing innovative next generation insulating solutions. The company focuses on energy efficiency, space reduction, and environmentally friendly vacuum insulation panels solutions. va-Q-tec also manufacturers high-performance thermal packaging, passive airfreight containers, sophisticated phase change materials. Website: www.va-q-tec.com w w w. m a r k e n . c o m
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a strong case for rethinking your cold chain strategy
An optimAl cold chAin strAtegy requires A fit for purpose SingLE-USE
REUSABLE
Affordable one-way shipments
Wide range of reusable shippers
Chronos™ Advance
Credo Cube™
Reusable and single-use cold chain shipping containers each offer compelling value propositions. For most companies, an optimized supply chain requires strategic use of both options. Pelican BioThermal offers the most comprehensive range of both single-use and reusable temperature-controlled shippers from 2L to 96L (pallet shipper). Just as important, our cold chain consultants can help you develop an optimized strategy that results in the lowest total cost of ownership — and the best product quality outcomes. We’ve got every cold chain challenge covered.
To learn more about our newest products and services, call 877.537.9800 to speak with one of our knowledgeable Sales Team Members, or go to: www.pelicanbiothermal.com
The Global Name in Cold Chain
MARKEN
S U P P LY C H A I N D I G I TA L / H E A LT H C A R E G L O B A L
Marken has its own operational excellence program that is based on LEAN and Six Sigma principles. Towards the end of 2014, key charters, quality control issues and interactions between global functions were evaluated to determine what could be improved. The result was the creation of a welldefined program that could monitor and measure targeted areas on specific accounts. “I believe in the principles of applying very stringent tools on how you measure your business, how you can streamline activities by leaning them out and reducing the number of steps,” Wheeler said. “We are applying that in a very rigorous way here that extends all the way into new IT systems and how we can reduce certain staff and steps by integrating systems across the company. There are multiple projects and Dan [Bell] is at the center of that, measuring them every month.” “The industry itself has done a very good job of identifying what key performance indicators should be,” explained Bell, “but I believe we lead in developing those.”
In addition to looking internally, Marken has also developed a key account management program to build client satisfaction. “We meet with [our clients] on a very regular basis in order to understand the strategy they need, align our goals and develop services,” said Van Strien. “We make it easy for our clients to work with us.” Maintaining the quality of staff and recruiting fast enough to support the company’s growth has been a challenge for Marken—but not one that couldn’t be overcome. After almost doubling their staff from 375 employees four years ago to 600 employees now, Marken realized there are key valuable attributes shared amongst their employees. “We realized that there was a willingness to create and a drive to take ownership,” explained van Strien. “Those are the kind of people we are attracting and who are very successful within our company. When it comes down to it, we are the ones who will be called for any of the complicated supply chain challenges that happen every day w w w. m a r k e n . c o m
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MARKEN
throughout the world, so we need to attract a very specific mindset of strong, creative employees worldwide, and I think we do it really well.”
despite airline closures, Marken has always found a solution for success. “We remember that there’s always a patient behind each shipment, and you become very creative not to give up and to find the best solution,” van Step 3: Continue to Surpass and Strien said. Improve “It’s become a part of our DNA,” Marken ensures the delivery of she added. “We have always been shipments on time thanks to the extremely good at that and it’s our company’s knowledge of life passion to make sure everything is science, regulatory experience, a done on time.” global depot network, and at times, just sheer determination of its Step 4: Plan for future growth employees. Wheeler, van Strien, Bell and the From traversing through an entire team at Marken have spent earthquake in Chile to delivering the past four years building a medicine to a sick child in Australia strong foundation for success. 94
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Company Information INDUSTRY
Logistics and Supply Chain HEADQUARTERS
4307 Emperor Blvd, Suite 210 Durham, NC United States 27703
Now, as Wheeler puts it, the company is ready to “make a lot of noise.” As the supply chain industry continues to evolve, becoming more direct-to-patient, Marken will be there to set the standards of excellence. With 10 established depots worldwide and plans to expand portfolio services, is there really anything this company can’t do? “We have the edge on technology, the knowhow, the service and have global and regional agreements with almost all of the key players on the clinical side,” said Wheeler. “We don’t just speak logistics, we speak pharma; we are not just transportation people, we are pharma people. We are 100 percent dedicated to this industry.” “We’ll continue to make a lot of progress over the next 12 months,” he concluded.
FOUNDED
1980 EMPLOYEES
600
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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
Produced by: Vince Kielty 97
UGL
UGL’s ultimate objective is a dynamic supply chain that is responsive to its customers.
U
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 98
October 2015
(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
S U P P LY C H A I N
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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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
S U P P LY C H A I N
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 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
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
S U P P LY C H A I N
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 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 has also improved, with sales and operational
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
S U P P LY C H A I N
planning helping to move from the uptake. the push to pull methodology in Newman suggests the Rail response to changing market needs. industry in Australia is now also awakening to this pull methodology Implementation in Australia though. He said: “It’s been a tough The Australian engineering and Rail road at times because it has been a sectors spent a lot of time where a paradigm shift from the way in which push supply chain strategy was the the business operates, and the best option according to Newman, entire mindset has to change. We’re because it was simply more moving from buying ‘just in case’ important to keep customers’ rolling and trying to push that to a market stock moving in industries such as where we move to a strategy that mining. Compared with the FMCG says ‘no, let’s understand what we (fast moving consumer goods) will need and when we will need it.”’ world, which has a far more mature “Implementation of pull advancement of pull strategies, methodology on inventory stocking mining and Rail have been slower on is a key focus for the supply chain
SUPPLIER PROFILE
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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C O M PA N Y N A M E
Xxxxxxxxxx
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 incredibly focused to ensure this operational shift does not result in a decline in its customer service
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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 low-cost 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.”
SECTOR
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 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 successfully rolled out over the last six months has been our mobility w w w. u g l l i m i t e d . c o m
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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 108
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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
S U P P LY C H A I N
communication tools, like having email accounts and internet access 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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