Brochure - Fulton Hogan

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THE ROAD TO SUCCESS Helping keep Australia on the move, civil engineering and construction major Fulton Hogan is responsible for some of the country’s most important infrastructure projects.

Written by Adam Turner Produced by Erika Kracer

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ounded in New Zealand in 1933, Fulton Hogan started in the asphalt business – building state highways – and soon grew to tackle major construction projects. Expanding across the Tasman, today Fulton Hogan is responsible for building major Australian transportation projects such as upgrades to Melbourne’s M80 Ring Road, Queensland’s Bruce Highway and the Princes Highway south of Sydney. Fulton Hogan is also involved in the construction of airports, ports and rail links across the country, as well as wind farms and hydroelectricity stations.

While Fulton Hogan’s interests stretch far and wide, with 25 regional businesses across Australia and New Zealand, it has maintained a decentralised business structure which empowers each region to deliver local projects. This freedom allows a large business like Fulton Hogan to remain agile, but in return it creates challenges in terms of supply chain management and making the most of its

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Jane Falconer, Executive GM Procurement Jane was appointed to the Executive General Manager Procurement role in March 2014. In this role she is responsible for establishing and leading a central procurement function to support Fulton Hogan’s third party purchasing activity across New Zealand and Australia.

Jane joins Fulton Hogan’s group management team from the automotive and energy sectors in Australia where she has spent over ten years developing and implementing strategic procurement teams and processes into organisations to reduce operating costs, manage suppliers and create sustainable value for organisations.

Jane’s qualifications include a BSc in Chemistry and an MBA.

bargaining power with suppliers.

Fulton Hogan operates its own asphalt manufacturing plants for its road-building and maintenance businesses, and operates a number of quarries throughout New Zealand and Australia.

“In a traditional manufacturing supply chain, all roads lead to the manufacturing facility and then on to the customer,” says Jane Falconer – Fulton Hogan’s Executive General Manager, Procurement.

“Our world is different because our supply chain is largely focused

on the provision of materials and services to project or work sites around the country, where these materials and services are consumed in the field.”

“We are a vertically-integrated business which means we can use internal resources, such as asphalt and aggregates, to meet our regions’ needs for their projects.

We are constantly reviewing our supply chain to determine what is best for the project and community. For example, if our quarries are located close to the

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Nick Miller, Managing Director Nick was appointed Managing Director of Fulton Hogan Ltd and Fulton Hogan Construction Pty Ltd, Fulton Hogan Industries Pty Ltd in January 2010. He is the director of a number of Fulton Hogan subsidiaries and joint ventures, including Blackhead Quarries Ltd, Allied FH Ltd, WFH Properties Ltd and Pokeno Village Holdings Ltd. He is also a Board member of the Australian Contractors Association (ACA). Nick was formerly the Chief Executive of Fulton Hogan Pty Ltd and he has over 20 years’ experience in various civil engineering and management roles, including as Chief Executive of Isaac Construction. Nick’s qualifications include a BE (Hon) in Civil Engineering from Canterbury University and a New Zealand Certificate of Engineering.

site, it makes sense to use them.

In other instances it may be more economical to use an external supplier if they are closer to the site.”

“We also leverage our size and negotiate national agreements with suppliers,” she adds. “Our centre-lead procurement team and national, or Trans-Tasman, supplier agreements are available to our people. They also have the flexibility to look elsewhere if they find better value. This means that we are constantly evaluating and balancing individual supply

verses our national agreements.”

“We’ve always been a decentralised business, almost like a federation of regional businesses, and part of my team’s role is to ensure that everyone understands the supply agreements that are in place. Having a nationwide supplier deal on paper is one thing, but the benefits only come when we realize the real value and savings in the field.

With around half of its 6,400 employees procuring goods and services in some way, Fulton Hogan is looking to implement a business-

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Rob Woodgate, Group Chief Financial Officer Rob was appointed to the role of Fulton Hogan’s Group Chief Financial Officer in September 2016.

As Group Chief Financial Officer, Rob is responsible for the company’s fiscal strategy and risk governance frameworks, along with the delivery of shared services and IT across the entire operations. He has previously held senior executive positions in New Zealand and the United Kingdom, and across a range of sectors, including Chief Financial Officer of PGG Wrightson Limited, and more recently Chief Financial Officer of Silver Fern Farms Limited.

Rob’s qualifications include a BCom, and he is a Chartered Accountant and a Member of the New Zealand Institute of Directors.

wide purchase-to-pay system.

The system won’t be designed to centralise approvals and stifle autonomy, which Jane says would go against Fulton Hogan’s enduring principles of empowerment and autonomy. Instead the purchaseto-pay system will standardise and streamline processes, and offer greater insight into Fulton Hogan’s purchasing habits. The results will help Jane’s team strike more efficient procurement deals and develop more targeted sourcing strategies.

“We can leverage scale across

“We’ve always been a decentralised business, almost like a federation, and part of my team’s role is ensuring that everyone is on the same page and makes the most of the resources available to them” w wwww. fwu.lttm o nr.hqol d g .agno. vc .oam u

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New Zealand's Gough Group and Fulton Hogan have more than 80 years' partnership in the transport, energy, aggregates, civil construction and land development industries throughout New Zealand and Australia.

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Robert Jones, Chief Executive Officer – New Zealand Robert was appointed to the role of Fulton Hogan’s Chief Executive Officer New Zealand in July 2015, and is responsible for the leadership of the combined Regional and Infrastructure businesses across the country. He joined Fulton Hogan in January 2012 as Chief Operating Officer – Infrastructure, responsible for leading the company’s infrastructure expansion in the New Zealand market.

He came to New Zealand as the Project Director for the Northern Gateway Alliance and was subsequently appointed as the Country Manager for Leighton Contractors.

Robert has over 40 years’ experience in the construction sector.

His career includes extensive experience in managing major engineering projects around the world.

Robert is a Board member of the New Zealand Council for Infrastructure Development. He is also a Fellow of the Institution of Engineers, Australia, a Fellow of the Chartered Institute of Building (UK), and a Fellow of the Australian Institute of Building. He sits on the Board of Trustees for the Camp Bentzon Trust which runs a children’s and community camp on Kawau Island in the Hauraki Gulf.

the business, but it can only be done from the centre – which means striking the right balance between regional autonomy and centralisation. As we do this it is critical to get the stakeholder engagement right,” she says.

The new purchase-to-pay system must be mobile and accessible to frontline staff. This will involve

“We can leverage scale across the business, but it can only be done from the centre – which means striking the right balance between regional autonomy and centralisation” w w w. f u l t o n h o g a n . c o m

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CONTACT US

02 7 435 9437

www.ackcontractors.co.nz

issuing them with devices so they can process purchases on the move and with no downtime to our activities. As such the deployment and change management aspects of the project will be critical.

“A large part of the process will be teaching people how to use this technology both in the office and out in the field.”

“We need to approach the project’s deployment and training in a way that staff will see the benefits and embrace the change.

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colin@ackcontractors.co.nz

“We’re excited about working with our regional businesses to deploy this technology right down to the front line, to facilitate our business becoming very tech-savvy in the 21st century”

CONSTRUCTION

Bob Fulton, Director Investments & Associates Bob was appointed as Director of Investments and Associates in July 2015, and is responsible for the management of our associate businesses including Land and Fulton Hogan’s Fijian investments. Prior to that he was the Chief Operating Officer of Fulton Hogan’s New Zealand operations. He is also a Director of Fulton Hogan Ltd, Fulton Hogan Construction Pty Ltd, Fulton Hogan Industries Pty Ltd, Horokiwi Quarries Ltd, Allied FH Ltd, WFH Properties Ltd and Rangititikei Aggregates Ltd. Bob has held various roles in Fulton Hogan Ltd from 1991 to the present day, with previous engineering positions in the UK and with a Local Authority. Bob’s qualifications include a BE in Civil Engineering.

We’re excited about working with our regional businesses to deploy this technology right down to the front line, to facilitate our business becoming techsavvy in the 21st century.”

Fulton Hogan is also looking to the future in terms of sustainability, aiming to minimise carbon emissions, improve energy efficiency and reduce waste. It is a member of the Clean Energy Council, the peak body for the clean energy industry in Australia.

Each business region is encouraged to develop its own environmental initiatives to encourage greater ownership at the local level.

“Sustainability is something we take seriously and our efforts include using more biofuels, such as biodiesel, to reduce our reliance on diesel and gas in terms of how we operate on sites and run our plants,” Jane says.

“Another aspect involves the installation of solar panels on all of

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CONSTRUCTION

NZ Prime Minister, John Key and Waimakariri MP, Matt Doocey, visit our project team constructing the Western Belfast Bypass, Christchurch

our major plants across Australia, which is helping to manage our carbon emission exposure. With the advent of more affordable battery storage devices we believe this will continue to drive value across our business”.

With many of its projects in regional and remote areas, there is also a strong focus on engaging with communities, and in particular indigenous communities, to increase their participation in the construction sector.

“We’ve been working on establishing processes and strategies which allow us to identify indigenous companies and then procure from them. For example, working with Supply Nation in Australia to identify suppliers that

are relevant to our businesses and project locations,” Jane says.

“At the same time and within our Australian business, we’re in the process of developing a reconciliation action plan, finalising an indigenous engagement strategy and strengthening relationships with our local communities. Procurement is just one area where we can create strong connections with communities.”

With Fulton Hogan’s unique and successful business model, optimizing the supply chain offers great opportunity and challenge to drive value throughout the business and to our shareholders.

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Botanicca Corporate Park, Building 7, Level 1, 572 Swan Street Richmond, Victoria, Australia 3121 Tel. +61 3 9340 6200 www.fultonhogan.com