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u p d a t in g a n d in f o rmin g t h e Gre a t e r E a st Ta ma ki b usin e ss co mmu n it y




Editor: Jane Tongatule E Advertising: E PO Box 58260 Botany Auckland 2163 P 09 273 6274

From the Chair In this issue we highlight the logistics and distribution sector, looking at the impact of changing customer behaviours and technological advancements. The sector is well represented in East Tamaki and is in growth mode with several expansions particularly in the Highbrook Business Park, so this issue features several local businesses. There are also updates on our regular workstreams, advocacy issues and informative articles deriving from the recent Business Owners Forum on overcoming adversity. GETBA’s AGM was held on 29 September. The 2015 / 2016 Annual Report and audited Financial Statements were presented and adopted, as were the 2016 / 2017 Business Plan and Budget, and 2017 / 2018 indicative budget. The GETBA Committee remains in place with the seven existing members re-elected (see page 3). I would like to thank the committee for their voluntary efforts steering the Association over the past year. I’m also pleased to announce that all ten inaugural Association sponsors have renewed their commitment for the 2016 / 2017 year. You can read more about them on page 19. We encourage you to support them where you can. It is hard to believe that we are back into daylight saving already, and into the last quarter of 2016 with Christmas just around the corner. On behalf of GETBA and your committee, I trust you will enjoy reading our latest Focus magazine and as always, don’t forget to regularly visit the GETBA website and keep up-to-date with happenings in East Tamaki. RICHARD POOLE CHAIRMAN, GETBA

Upcoming events 20 October Business Owners Forum: Reinvesting in your business 3 November Bayleys Business Showcase and Property Market Update 15 November Waste Minimisation Forum 25 November Breakfast with Hon. Simon Bridges




Meet your committee CHAIRPERSON






Managing Director, MiTek NZ Ltd

Partner, Wynyard Wood

Partner, RSM New Zealand









representing Broady’s NZ Ltd

Managing Director, A Touch of Italy Ltd

Director/General Manager, Hydestor Manufacturing Ltd

Director, Neil Park Motors Ltd

Bayleys Business Showcase & Property Update

Waste Minimisation Forum

Breakfast with Hon. Simon Bridges

Hosted by Bayleys at their refurbished premises. Join us for an update on the commercial industrial property market.

Practical advice and information from local companies who have successfully implemented Waste Minimisation plans.

Minister of Transport, Minister of Energy and Resources, Associate Minister for Climate Change Issues, Associate Minister of Justice.

Thursday 3 November

Tuesday 15 November

Friday 25 November




Venue: Bayleys 2 Harris Road, East Tamaki

Venue: Waipuna Conference Suites Highbrook, 60 Highbrook Drive

Venue: Waipuna Conference Suites Highbrook, 60 Highbrook Drive

No charge Refreshments provided

No charge Refreshments provided

Cost: $20 / person or $180 / table of 10






LEADING THE WAY Driving on our roads nowadays, you’re hard pressed not to pass a DHL van once or twice and it’s no surprise considering DHL are the world’s leading logistics company.

DHL Supply Chain has over 110,000 sqm of warehousing and more than 650 employees within New Zealand servicing a number of customers over varying sectors. Their largest facility, with a team of 300 and a large customer base, is the 30,000 sqm Highbrook site on Kerwyn Avenue which deals with the local storage and distribution of a mixture of consumer and technology customers. “We’re able to draw on both our global scale and local insight to deliver value across the supply chain.” Paul Gahan, Director of Operations explains. “From initial consultancy and design, to delivery and reverse logistics, we provide customised solutions across all sectors.” The Highbrook site is designed around a ‘campus’ structure in order to leverage onsite capabilities, and is ideally positioned for their main transport hub. “We use a variety of structures between sites in order to support the specialised 4


handing of products in order to meet our customer’s requirements. The positioning of our site is critical too, as we’re the largest DHL warehouse in Auckland, so being close to a main arterial road is important for transport flow, plus it’s convenient for our staff.”

Meeting national and global standards Strong quality management systems in all DHL warehouses are an integral part of keeping operations running smoothly, and a number of accreditations are required in order to maintain the integrity of customer’s products. “There’s a real demand now for superior standards and quality within

New Zealand, which drives people to a specialised provider like ourselves. We have to meet and exceed global requirements as well as national regulations, so we have a strong focus on quality and take great care to align our internal and external processes.” According to Paul, the profile of many DHL customers – and their customers – is changing. “We’re seeing a lot more real-time, smaller shipments rather than bulkier consignments now. The ‘multichannel’ scenario happens when you’re supplying to different channels such as retail, other distribution centres or direct to homes, and this is a challenge for our customers so being flexible and agile within a complex operation and handling all the different requirements

is key. Our main aim is to simplify the process for our customers, so they don’t need to worry about those challenges.”

Staying ahead of the curve Technology is obviously a huge driver in DHL’s direction, and their global presence means that a lot of investment is placed in trying to stay ahead of the curve. “Our customers are a lot more data hungry now,” Paul says. “A key advantage at DHL is that we have the tools to capture that data and turn it into relevant information to plan the vehicle, the supply chain and warehousing. That intelligence can then feed back into our Lean Six Sigma and is pretty powerful in looking at our processes, plus it creates a better dialogue within operations and with our customers. We provide full visibility and give them the power to see where their orders are in the warehouse or the transport network, which in turn gives power to their own customers.” This visibility platform or ‘ConnectedVIEW’ is used throughout the DHL global network and provides an integrated view from when goods come into the warehouse all the way to when they’re delivered to the customer. Logistical tools that were once just ‘a dream’ for the team at DHL are now becoming a reality. “Things that were too expensive to implement in the past, we’re starting to gain access to now, which is pretty exciting. Technology plays a bigger part in operations and it’s much more achievable in a smaller economy like New Zealand.” Strong innovation centres across Europe and Asia lead the way with new solutions; for example new ‘smart’ glasses have recently been tested in the Netherlands as a first step in DHL’s Augmented Reality journey. “The technology was used to implement ‘vision picking’ in warehousing operations,” Paul explains. “You basically put on a pair of glasses that tell you where in the warehouse to find the item you’re looking for. You then look at the product and it scans the barcode, confirms you’re in the right location and then it tells you where it needs to go. Very cool!” DHL Germany have also tested robot technology for collaborative automated order picking. The robot is a fully automated trolley that follows pickers through the warehouse and takes care of most of the physical work by carrying items and automatically dropping off orders once fully loaded, meaning staff can work hands-free and don’t have to push or pull heavy carts.

A key way that DHL simplify things is through the use of technology and systems, as well as maintaining a close relationship with their customers and understanding their needs so they can adapt accordingly. “Our operation is very much directed by technology, but it’s important to highlight how our teams work to improve the use of this technology. We employ use of the Lean Six Sigma that we’ve localised for use in our team and which we refer to as ‘First Choice’. We mapped out our process end-to-end to see if there was any ‘slack’, to see if we could make it leaner. We have access to a lot of technology, however it’s only as good as the people using it! Our people are a critical part of the business and we have some great learning and development programmes to keep our team enriched and ahead of the game.”

Keeping the carbon footprint down What’s also important at DHL is keeping to their ‘Go Help, Go Teach, Go Green’ ethos. “We don’t just deliver goods, but do so in a sustainable and responsible way. We have internal targets for energy consumption which, not only help the environment, but save money for our customers along the way. We also report on the carbon emissions of some of our customers and look at how we can reduce that footprint.” By using route planning tools and optimising travel paths DHL is able to maintain fuel efficiency. Upgrading to energy efficient vehicles and new sensor lighting throughout their Highbrook site all adds up. “There is a change happening in supply chain around these sorts of things, which is good for our community and it’s also good for business. One of our sister sites has the new hybrid electric trucks, so we can leverage their findings and potentially implement them here. Being part of a global company allows us to do that, which is valuable.”  S P R I N G 2 0 1 6 FOCUS ON LOGISTICS & DISTRIBUTION


Not trying to be ‘everything to everyone’


STEPPING UP TO MARKET DEMANDS Chris and Colleen Bennett’s idea for a business came in an unusual form – their eighteen-month-old daughter Chloe’s feet. Bobux New Zealand was inspired by a hunt for shoes that were good for their baby’s sensitive feet (and weren’t such a challenge to get on her!). After extensive research, Chris discovered that growing feet in inflexible shoes was the leading cause of adult foot problems, and so his architectural flair came into its own when he began designing a pair of shoes for his daughter. “When a baby is born they have no bones or muscles in their feet, so you can really dictate their form by what footwear you choose”, Andrew Sharp, CEO of Bobux, explains. “Chris had the structural knowledge and Colleen had the artistic skill to create an answer to their problem, and so Bobux was born.” Chloe is now Office Manager at her parent’s company, which has seen tremendous growth over the last 25 years. The Bobux range has expanded over the years and now encompasses newborns up to children around seven years old. “Each child is different – we go by stage, not age – but all bones are fully formed by the age of seven. We may look at school shoes but right now we’re focusing on what we’re doing well.”

Now closing in on their Silver anniversary, Bobux began exporting to Australia only two years after launching, and to the UK and US a year later. “When you’re in a small country like New Zealand, you can either expand your product range to appeal to everyone or you can stay niche and grow your audience outside of New Zealand. The issue many Kiwi businesses have is that they try to be everything to everyone, and lose the significance of who they are. Bobux wanted to stay focused on their message, and that was the start of our export journey!”. Their store in East Tamaki is Bobux’s sole New Zealand base, which used to be their manufacturing station but is now just used for warehousing. “As with most manufacturers and exporters today, the cost of manufacturing in New Zealand was untenable so we shifted to Indonesia about five years ago. We chose Indonesia primarily because they treat animals well, so their leather quality is one of best in the world. They also have a really good shoe industry so their expertise and skills are great.” Bobux also use contract warehouses in the UK and are looking at similar options in Australia, “but speed of delivery may not vastly improve, and it’s the same for Continental Europe. With Brexit we’ll likely be looking at a few changes; we’re considering The Netherlands because of associated on-costs”. Bobux is now present in 35 countries, with Australia currently being the company’s biggest market, making up approximately 20% of sales, and Europe totalling 55%. With sales in New Zealand making only 10% of its revenue, Bobux is definitely an exporter. “Four of our markets are wholesale where we deliver direct to the retailer. The other 31 countries are distributors who pick up from our warehouse in Indonesia. Whilst we are a



manufacturer, we contract manufacture, which effectively means we’re a design house. All Bobux products are 100% designed in-house, however we do use external designers overseas to capture the flair of the countries we’re selling into, but the design structure remains internal.”

People used to visit a few stores to compare prices, now they just have a variety of ways to do that research. For the consumer it’s great, knowledge is power and often price is king. People will always buy, whether it’s from your store, online, or from the shop next door – we just want to make sure it’s a Bobux product.”

Emerging trends

Andrew has also noticed a change in consumers’ holistic buying patterns. “You can ask anyone nowadays and they’ll say ‘Yes, I believe in sustainability’, but then they’ll go into a shop and buy the cheapest product. There’s a real disparity between desired results and actions, but that is changing. Consumers now want to know how sustainable your product is from the packaging to shipping, and they want to know that your factory practices are ecofriendly. You saw it with ecostore; their customers used to be seen as ‘hippies’, but not anymore! People will happily pay an extra $1 because they believe in the brand and what it stands for.”

When talking about the changes Andrew has seen in the retail space over recent years, he’s noticed something interesting. “There’s a big fear that buying online is going to take over, which I understand, but it’s not real. Customers want to shop around now and use an omnichannel* approach, so they might go into a shop to get fitted but they’ll look online to find what they like and buy from wherever has the best price. It’s an interesting concern that ‘online’ is this big competitor, when in fact that competition has always been there, it’s just delivered differently now.

Another welcome shift, Andrew says, is that “People are starting to understand that it makes sense to buy one good product rather

than ten poor products. Certain markets will never change – The Warehouse will always exist – but the number of consumers who are willing to invest in better quality products is growing, which is great for us. As parents become better informed on their kid’s foot health, more Bobux products are being sold!”.

Take the help that’s there In terms of logistics, Andrew recommends that maintaining good relationships across the board is key. “We have a great relationship with our local and overseas supply chain partners.” He also recommends connecting with NZTE, who can connect likeminded companies. “There are challenges on the horizon in terms of cost increases and whether the customer or the manufacturer will bear them. It’s a case of managing your customer’s expectations and meeting their needs, so manufacturers and retailers really have to work together. A good example is dealing with out of stocks – if a store is out of stock for a certain item the retailer can go to the Bobux site and if we have it, arrange delivery either to the store or the customer’s house. This helps the retailer and the brand as no-one misses the sale, however there can be issues in mitigating retailers risk whilst still helping them grow. It’s a real balancing act.” 

*Omnichannel retailing is focused on creating a seamless consumer experience for the connected customer who uses traditional and digital shopping channels simultaneously throughout the purchase journey.



WORKING OUT THE LOGISTICS Studying is the quickest route into the logistics industry While looking into joining the armed forces, Bettyena (Betty) Polima found herself instead drawn towards the fast-paced and energetic world of logistics while she was still in high school. “Not many people know about it as a career, but if you have experience and have studied, you have a good chance to go far,” she says. “It’s a good industry to get into.” The 21-year-old Manukau Institute of Technology (MIT) graduate is now an Export Agent at international logistics company Kuehne + Nagel. “I’m an export air freight operator, which means I help companies export their goods to overseas markets. We work with large companies, moving a lot of different types of products, booking space for them on airlines.” “You need to think on your feet. It’s a fastpaced industry, so it keeps my mind busy all of the time. You need to be organised, and be able to meet certain criteria within a timeframe,” says Betty. The logistics industry is enormous and constantly changing, with roles ranging from managing supply chain, customs, freight forwarding, distribution, air and sea freight and procurement, with starting salaries ranging from $35,000 - $90,000.

MIT student Betty Polima

After researching the industry while at high school, Betty enrolled in a Certificate in Logistics (Level 4) after year 13, and moved into the Diploma in Shipping and Freight (Level 5).

Betty was offered the job at Kuehne + Nagel two weeks before she graduated from MIT. “The team I work for is great, everyone helps each other – if you have a large workload, they’ll stay behind and help until you’re finished.”

“The lecturers at MIT were really good,” says Betty. “They would always take the time to help you and make sure you’re up-to-date with your work.”

She’s set her sights on moving from operations into management in the future - “but I’ll definitely stay in this industry,” says Betty.

Upskill with our flexible part-time or online study options in distribution, shipping and freight, logistics and supply chain management. You’ll get a qualification that is fully supported by industry to fast-track your career.


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Studying logistics at MIT meant Betty gained the practical understanding of all transport sectors and their global applications: including logistics principles, cargo care, the importation and exportation of all types of products, and the law relating to transportation.



A diploma in international logistics is one year, full-time study at the MIT Manukau campus. For those already in work, MIT offers evening, part-time and online study in supply chain and logistics, ranging from certificate to graduate certificates.

Goodman building to meet warehousing demand Strength in the Auckland industrial market is behind an intensive building programme being undertaken by Goodman Property Trust at Highbrook Business Park. With over $85 million of new projects currently in progress, the listed property specialist is undertaking the largest volume of new building work in more than ten years. With a combination of pre-committed and uncommitted projects it’s a successful strategy that is delivering efficient new workspaces to meet occupier demand. John Dakin, Chief Executive Officer of Goodman (NZ) Limited said, “With occupancy at record highs and continued economic growth supporting business expansion there are very few options available for companies seeking high quality business premises. The Auckland industrial market is effectively full and, with no vacancy, there is a real shortage of new buildings for customers looking to move.” With demographic growth of 1.3% per annum forecast for the city over the next 30 years it’s an underlying trend that will continue to support the increase in demand for high quality industrial and commercial property, a key assumption in Goodman’s growth strategy at Highbrook.




021 826 462

021 506 010

10,579 sqm Viridian Expansion completed April 2016. The Viridian facility now totals 18,000 sqm.

Peter Dufaur, General Manger Development said, “We’re building to satisfy market demand. It’s a development programme that is producing high quality industrial facilities designed to make our customers businesses more productive.”

10 metres high at the portal knee. The roof height allows for racking systems that maximise the volumetric capacity of the space, which is typically enhanced with a reinforced concrete floor that can accommodate loads of up to 30 kpa.

These new buildings also incorporate greater levels of amenity for the staff that work there.

With translucent roof panels maximising natural light and options to install sensor controlled high performance LED lighting throughout the warehouse and office areas, operating costs can be significantly reduced.

Peter Dufaur said, “The business park environment that we’ve created at Highbrook is world class and a long way removed from traditional ideas of what industrial property looks like. Extensive landscaping, recreational areas, consistent architectural themes and a customer mix that includes amenity operators and service providers represents the next generation of workplace design.” The buildings themselves are highly efficient, and for sophisticated customers who understand the potential savings in total occupancy costs that modern premises provide, the decision to relocate to a new Goodman owned building at Highbrook can provide immediate economic benefits. Constructed from portal frames that offer clear span, sprinklered, warehouse space, the latest industrial facilities are typically

BUILDING 5 1,296 sqm office AVAILABLE NOVEMBER 2016

Rain water harvesting can be integrated into new projects enhancing the environmental performance of a building while reducing demand on reticulated services. Peter Dufaur said, “Starting with a highly specified base build we can easily tailor premises, incorporating new technology and optimising the layout to maximise the efficiency and functionality of the building for that particular customer.” Evan Sanders, the Portfolio Manager responsible for marketing the new premises at Highbrook said, “With a number of new projects currently in the design phase, it’s the right time for businesses to be talking to us about their space requirements.”

38 E & F HIGHBROOK DR 1,000 – 2,000 sqm warehouse AVAILABLE NOW

Artist impression of Building 5

THE HILL New 7,050 sqm warehouse AVAILABLE APRIL 2017

111 B KERWYN AVE 1,227 sqm warehouse AVAILABLE NOW

Artist impression of brand new warehouse




KEEP ON TRUCKIN’ Glen Brausch, founder and owner of Brausch Trucking, has been in the refrigerated and dry distribution transport industry for nearly 23 years, but he doesn’t show signs of slowing down any time soon.

Maintaining excellence and integrity “We started with one truck and now we have 35, a branch in East Tamaki and another in Palmerston North, and 40 staff. I still enjoy my work and we have a great team, so why put the brakes on?” In the beginning, Brausch Trucking’s main focus was on Auckland bulk store deliveries, but due to customer demand they now have a delivery fleet of small trucks, plus a line haul run down to Palmerston North. Brausch’s main objective is to have no cross docking of freight, and temperature integrity and product safety is paramount. All of Brausch Trucking vehicles are modern, up-todate truck and trailers, and they take pride in their image whilst ensuring job performance is second to none. “Our company motto is ‘Excellence and Integrity’.



We strive to be excellent and do the job right. You don’t have to be a rocket scientist to deliver freight, you just need the logistical know-how, and utilise all the good people you can. Our success at Brausch is a lot to do with the people I’ve surrounded myself with over the years; we have a great team here.” Their Auckland operation runs 24 / 7 and whilst Glen and his team are hard workers, a high emphasis is placed on maintaining that all-important work-life balance. “We have a real familyorientated culture here. We keep an eye on our guys to make sure they’re doing OK – if they’re happy at home, they’re happy at work. We know things can be a struggle sometimes so we help out where we can, maybe by paying for their car’s service. Recently we bought one of our

driver’s a Barbie bike for his little girl’s birthday. Our guys are very loyal to us and we have low staff turnover because they know that we care about them.”

Getting a kick out of logistics Glen started out as just a ‘normal bloke’, farming in Hawke’s Bay and the Wairarapa. “We were never afraid of hard work in the Brausch household. As a kid, I was up at 5am every morning working at the family dairy, plus I had a paper run! I learnt early on that you never got anything unless you worked for it.” Glen supplemented his farming income with driving trucks. “I was truck-orientated and liked hard work, plus I enjoyed the challenge, especially in winter!” A few years into his driving career, Glen bought into TCD Transport and began running their linehaul and deliveries. “As much as I loved driving the trucks, I got a lot of enjoyment out of organising them too – how to schedule things, organise loads, get pickups and deliveries done on time. It took a while to get my head around it, but that’s my forte now.” But it hasn’t always been plain sailing. After seven years of success in the industry, things went pear-shaped for Glen when TCD went under, owing him over $100,000. “That almost broke me. It was a dark time, but I got through it and learnt how to survive. As one door shuts, another one opens.”

From there, Glen began building up his own trucking business, Brausch Trucking. “I worked my fingers to the bone, we got through it. I can’t resist a challenge, a project to take on.” Customers now include Countdown, Goodman Fielder, Shore Mariner and Food Services.

KEEPING IT LOCAL! After talking with Glen, it’s clear he is a true advocate of the ‘Keep it Local’ ethos. “We do everything locally; we get our jackets made at Amare Safety here in East Tamaki, our trucks are serviced at Truck City next door, we buy our tyres from Carter’s Tyre Service - the lot. When we first started up and needed signage for our trucks, I called into a brand new business Icon Signs who had just moved in that week. I was the young fella’s first job, and he still does our signwriting to this day. I believe in giving people a chance and businesses looking after each other in the local community.” 




LOGISTICS SOLUTIONS À LA CARTE “Do you know what we do?” was Rod Giles’, CEO of Contract Warehousing, first question. Seeing is understanding according to Rod, and so “First thing’s first, let’s get you into the warehouse so you can actually see what we do!” Contract Warehousing is currently in the process of shifting warehouses, which is no easy task. Not only are they moving the entirety of their stock, they’re also conducting stock-takes whilst remaining fully operational for all clients’ order requirements. They are doubling their warehouse space from 3000 sqm to 6000 sqm, which houses a mixture of products for 55 customers, 90% of which are offshore across Australia, the US, France, Thailand and Hong Kong.

Taking the stress away from clients Simply put, Contract Warehousing deliver complete, third-party warehousing and logistics solutions, and business support to a wide range of industries. “Not many companies cover all aspects like we do”, Rod explains. “We don’t just store and pack goods but we oversee everything from stock security, full inventory and reporting, through to GST returns and accounting, plus we provide customer support and delivery. All our clients need to do is source their product, 12


look after their own customers and we take it from there.” Contract Warehousing is fairly unique in that they are a 4PL provider, handling all aspects of managing stock and running a complete supply chain solution. “The majority of our clients are offshore and they don’t want to get involved in stock management for a variety of reasons – they don’t have the money, staff, time or simply the inclination. They can be aware of the third party concept but are unsure of all

their options, such as the fact that they can pick and choose what components to utilise us for. We’ll fit in with them.” Contract Warehousing strive to remain diverse in what they can offer their customers. “One of our American clients recently set up an 0800 number for their Australian customers to ring and place orders, which came through to us via EDI and we then picked, packed and dispatched the orders. Technology has come a long way – the first computer I

bought was $35k. Can you believe that? I needed a mortgage for it! We had another client who unexpectedly received a 40-foot container over Christmas which was full to the brim of loose products which we had to unpack, organise and ship; so for 36 hours we had our staff members working on this one customer who eventually grew to require 13 support staff. It’s important for some clients that we have that seasonal capacity and growth flexibility – if it can be done, we’ll do it!” There are currently 25 staff onsite at Contract Warehousing who are a mixture of office and warehouse based, and Rod often takes on interns from Europe who have university degrees in logistics but no hands-on experience. “We get them involved with all facets of the business, usually starting off sorting books and stock taking. We also have some long

serving employees whose expertise and knowledge is invaluable.” Rod founded Contract Warehousing in 1978 when he predicted that Closer Economic Relations (CER) meant Australian companies would take advantage of the opportunity to enter the New Zealand market if cost of entry was minimised. Since developing the idea of Contract Warehousing, the services and scope of the company has grown considerably from no-one even understanding the concept of 3PL to a significant business, and operating in both New Zealand and Australia. “We had a base in Australia for 12 years as well as East Tamaki, and still retain some clients over there. Due to compliance costs it’s cheaper for them to store their product here in New Zealand and then just ship it direct to Australia.”

The industry has come a long way Starting up with 18 trucks performing pick-up and delivery, Rod has noticed a huge change in the industry since then. “In the beginning, people just referred to our industry as ‘storage’, but it’s evolved to ‘Warehousing and Logistics’. It’s interesting that there’s far more awareness and understanding of the third party concept meaning now. Business professionalism is so much better too. The industry used to be full of cowboys but companies can’t afford to be like that anymore and expertise continues to grow. Recruitment is far more stringent too and you can do a degree in logistics now. The industry has grown substantially over the years and globally is one of the biggest sectors. There’s nothing you can touch or see in day-to-day life that hasn’t been through a warehouse.”


Creating local opportunities and employment Rod was Chair of the Manukau City Distribution Cluster Group, which was set up by Manukau Council. The group’s initial aim was to create opportunities for local growth and employment through implementing workplace training and introducing recognised qualifications. “The Logistics programme we brought about is provided by MIT and is now one of their bigger courses. It goes to show how far the industry has come that such a demand is there.” Rod has also

leveraged his business to deliver positive results for the wider community, driving an employment policy that welcomes new immigrants and long-term unemployed to the business. Unlike many Aucklanders, Rod is able to see the positive in our city’s traffic woes. “People complain about congestion, but they don’t realise that more traffic equals a better economy. We’re lucky to have a stable government and thriving business. We’re also fortunate in East Tamaki to have

the support of GETBA; it’s a very powerful association and not everyone appreciates it or how much it adds value. Back when we started Contract Warehousing there was no assistance from anyone, but there’s so much help now. You’re not isolated anymore.” 





Photographs by Grant Southam, and Hamish Melville,








OUTCOMES FROM THE UNITARY PLAN On August 19, Auckland Council responded to the recommendations of the Independent Hearings Panel (IHP) on the Unitary Plan. Looking through the IHP recommendations, the industrial business associations can be satisfied that most of their key points were accepted by the IHP: • A number of heavy industry sites that had been rezoned ‘light industrial’ or other zoning in the Proposed Unitary Plan were rezoned ‘heavy industrial’ again by the IHP. • The IHP recognised that industrial sources of air pollution, which were the focus of the Unitary Plan’s controls, contribute only 10 per cent of the emissions. As a consequence, the IHP encouraged the Council to lobby central government for better controls on vehicle emissions and to develop its own controls on domestic fires by way of bylaws rather than impose more restrictions on industry. The proposed heavy industry air quality overlay (a 500m air quality buffer into Heavy Industry Zones) was removed.



• The IHP recognised the importance of freight movements in the transport chapter and that it was sufficient to provide for one parking space for every 100m2 of gross floor area in warehousing and storage sites in industrial zones (and one parking space for every 50m2 for a manufacturing site). • Within heavy industrial zones, the IHP prohibited community facilities (including churches) over 450m2, while those under 450m2 and child care centres will be non-complying activities. • By the time of the hearing session for green-star ratings, the Council had decided not to pursue this in relation to industrial buildings as Council felt this was no longer necessary as compliance was occurring on a voluntary basis. • The restrictions on reclamation of the Port were reduced from a noncomplying to a discretionary status, making it easier for the Port to obtain consents for reclamation into the future.

It is also important to recognise that without this advocacy, those opposing the views expressed on behalf of industrial business areas would have had far more influence and the shape of the Plan on those things could have gone another way. However, with regard to minimum subdivision lot sizes in heavy industrial areas, the IHP’s recommendations were to keep these at 2000m2 (minimum net site size) and 5000m2 (minimum average site size) rather than reducing them to 1000m2 and 2000m2 as the Associations had submitted. Further, with regard to the buffer zones around Transpower’s electricty transmission lines, the IHP went with Transpower and recommended these be increased to a distance of 32 metres from each side of the centrelines of 110kV lines and 37 metres from each side of the centrelines of 220kV lines. While the Council rejected these recommendations and reduced this to 24 metres (12 metres either side of a transmission line centreline), Transpower has appealed this to the High Court. In addition, over 100 other appeals have been received by the High Court and Environment Court. These appeals will need to be addressed before the Unitary Plan can fully take effect. It is to be hoped that Council doesn’t lose momentum while these appeals are dealt with.

GREENMOUNT LANDFILL TO PARK UPDATE For many years, GETBA has been applying pressure on Auckland Council to recognise Sarah Jane Lushington’s bequest in 1932 gifting 40ha of the 54ha site for future use as a public park. It was to vest in the local Council as a park after the death of her niece who died in 1999, with sufficient revenue from commercial leases to be put aside for the development and maintenance of the park.

Two years ago we submitted an Official Information Act request of Auckland Council and when this was not responded to over time, we wrote a letter to the Ombudsman. We have recently been advised by the Howick Local Board that Council has at last agreed to direct funds derived from royalties over the years of commercial landfill use to the park development. At its August meeting, the Howick Local Board agreed to progress the first stage of a concept plan for the Park. The decision will see the existing $3.1 million budget (from the Greenmount Reserve Fund – separate to the above mentioned funds) used for initial works including bulk earthworks, sediment control, stormwater and swales improvements, road access, car parking, some footpaths and gravel tracks to the summit, tree planting, furniture and signage. When this work will start depends on when the site is safe for public use, but the first phase is expected to start next year. Meantime we’ll soon see an end to the heavy truck movements which have been contributing to congestion around the Smales / Harris / Allens Road intersection for years. At the recent Envirowaste Services Limited community stakeholder meeting, they estimated that fill operations would be completed, and the site closed to trucks, this October.

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OVERCOMING ADVERSITY The gift in adversity At The Breakthrough we had invested a massive amount of time, effort and money in getting a bank on board as a partner. They felt like a perfect fit with our business model. Long story short, the bank (not BNZ, I hasten to add) were like an indicator on a car: on, off, on again, off again. The

Our recent Business Owners Forum focused on overcoming adversity, with panelists discussing a local case study. We hear a lot about the need, in a rapidly changing and uncertain world, to be reinventing our businesses to stay relevant and trade profitably. But sometimes that change is forced upon us. What if something happens in your business that blindsides you? Andrew Turner, Managing Director of Nautech Electronics, award winning firm that designs, manufactures and exports innovative electronic products, generously shared his roller coaster journey – the highs and lows – and how he has rebuilt his business on more than one occasion. Forum panellists Dr Mike Ashby, Director of The Breakthrough and Liz Groenewegen, Partner, RSM New Zealand agreed to summarise their key messages from this event.



saga came to an end with yet another restructure and yet another hiatus, and at that point we cut our losses and moved on. On honest reflection there was nothing we could have done better or differently to get a different outcome, we were a victim of unfortunate timing and circumstance inside the bank that completely stymied what we were trying to achieve. What we discovered however was that in all the work we had done with the bank we had: • Developed our thinking about the approach, • Added significantly to the customer value proposition – in fact, in the end the bank was a long way behind us in their appreciation of the opportunity, • Gained huge insight into the critical success factors for this kind of initiative, • Developed our IP around systems, marketing and channels.

THE POINT IS THAT THERE IS OFTEN A GIFT IN ADVERSITY IF WE HAVE THE EYES TO SEE We have now taken all of that work and already used it to land a significant contract with Master Builders. We’ve also identified many others we can pursue and, importantly, who we won’t pursue (and yes that includes banks). It is even possible that if the bank had gone ahead it would have caused us to put the blinkers on and not given thought to the wider market opportunity.

The point is not that we are resilient (though we are!). The point is that there is often a gift in adversity if we have the eyes to see. I’ve often said “as one door closes, let a thousand flowers bloom.” Aside from enjoying a good mangled metaphor, it’s something I’ve found to be utterly true in my life. Almost every apparent dead end, every failure, every setback contains the clues to something better. It’s more than what my mother called character-building. It’s all progress, and that’s always what we have to be about. Sometimes we move forward by going into reverse. But in the middle of the adversity, it can be hard to see the gift. A few things to think about to help us get through the tough times: • First and foremost, take care of yourself. You’re no use to anyone or anything if you’ve worked or stressed yourself into hospital. You’re also not much use to your business if you don’t take care of your relationships. Make your home a place where you leave the adversity at the door. Don’t look for advice or business understanding at home: all you need is some love and sympathy.

Dr Mike Ashby, Andrew Turner and Liz Groenewegen

• On a related point, look after your head, because you’re going to need to keep it. There’s a huge amount of evidence about the powerful effects of ancient practices like mindfulness, meditation and gratitude. Stop being all brave and start helping yourself.

• Never lose faith that you will prevail in the end, though the end might be different from where you thought it might be!  Dr Mike Ashby is a Director at The Breakthrough and author of Breakpoints: How to Shift Your Business to the Next Level. Find out more at

• Confront the reality as it is, not as you would wish it to be.

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Key success factors for surviving adversity and business longevity It’s important to keep your finger on the numbers with regular management reports and understand the numbers. Think in percentages as well as dollars. • If gross profit percentages slip, you need to know. There may be incorrect pricing, slipping productivity, miscalculated forex costs, or you may not realise how stiff competition is until too late. Trading accounts are not just about sales, profit margins matter too, in dollar terms and percentages. • Be wary of over-reliance on key customers, be able to trim costs fast if you lose key customers. • Watch for key supplier dependency, plan for alternative supply means and spread the risk. • Compare overhead costs month-tomonth to know what’s going on. • Make the hard calls when you need to, so you stay in control of your business. • Have budgets to work within – rolling budgets work well. • Measure profit and loss results to budget, identify and explain differences. • Look beyond the profit and loss and the bank balance to give your business the best chance of surviving adversity. What’s coming and what’s NOT coming matters as much as what has or hasn’t happened. You need to understand the numbers on the balance sheet – what they mean, where the numbers are heading and what that might mean for your business. • Identify cracks, as and when they appear, while you’ve got time to do something about them and before big holes open up in the business that are difficult to climb out of. 20


• A business can show profitable results but be strangled by cash constraints. • The key drivers of cash are debtors, stock and creditors. • Watch trends… increased debtor days mean increased working capital requirements. • If stock turnover slows then convert slow-moving items to cash. Bill out workin-progress promptly.

• Keep creditor payments steady, within agreed terms of trade but not sooner than needed. • Assess the value of taking discounts versus paying creditors early. • The higher the working capital cycle the more costly it is to fund. • Know your working capital requirements in dollar terms and days. Monitor these numbers to know when cash is tightening. • Business expansion means working capital requirements may increase, but not the working capital cycle (in days) unless customers are extended additional credit, suppliers shorten credit terms, or you take on slow-moving stock.

A closer look at key business measurements Liquidity Divide current assets (bank, debtors, stock) by current liabilities (creditors, loan payments): • At $1.75 to $1.00, there is enough money to pay liabilities as they fall due and to remain cash efficient. • At $1.25 to $1.00, cash is accounted for before receipt – at dollar for dollar or below there is no room for uncollected debtors or unexpected expenses. • If the ratio is upwards of $2.00 to $1.00, there is possibly surplus cash in the business and money could be better invested elsewhere. Too much cash means business might be tightening up but you’re slow to realise because cash isn’t a problem. Business may be in decline and using up cash resources. Keep your eye on those key drivers.

If the working capital percentage is greater than gross profit percentage for every additional unit of revenue generated, additional cash will be required. Growth can strangle a business, so understand additional cash requirements.

ROCE (Return On Capital Employed) A key measure of business performance, calculated by Earning Before Interest & Tax compared to Net Operating Assets. The higher ROCE percentage is, the better your business performe. ROCE percentage should be higher than your bank loan interest… otherwise the bank is winning!

Working Capital

Shareholder Equity

For sales growth, compare working capital as a percentage of revenue to gross margin percentage.

Aim for 40% plus… the more equity you have, the less debt there will be to service when times get tough.

SAVE THE DATE Your dividend policy should fit your equity requirements. Reinvest some of the profits into the business for growth and stability. There are many ways to measure a business; your accountant will help with various key performance indicators tailored specifically for your business. The point of key ratios is to monitor trends to identify areas in the business needing attention. A strong balance sheet increases your business’ chances of surviving adversity. Good management helps maintain a strong balance sheet. Give your business the best chance you can to cope in times of stress!  Liz Groenewegen is a Partner at RSM New Zealand (Auckland)


Reinvesting in your business Hear how our panelists successfully invested profits from their businesses into R&D and lean improvements, and how to go about accessing funding.

Thurs. 20 October 4.30-6.00pm Venue BNZ Partners, Level 1, 86 Highbrook Drive No charge (Sponsored by BNZ)  Register by emailing

Don’t just see potential – see it realised. To make confident decisions about the future, an entrepreneurial, growing business needs a different kind of adviser. One who starts by understanding where you want to go and then brings the ideas and insights of an experienced global team to help get you there. Experience the power of being understood. Experience RSM.

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MIT student Mark Croker


After twenty years in accounting and finance, Mark Croker wanted to learn more about the wider operations of business. “It dawned on me that I needed to expand on my skillset,” says Mark. “I wanted to broaden my knowledge in other areas outside of accounting, and gain more understanding of how business operates in a wider sense.” In 2013, Mark enrolled part-time in the Southern Cross University MBA programme, delivered at Manukau Institute of Technology (MIT). “For me, it’s been rewarding in understanding the rationale behind why decisions are made. It gave me a deeper understanding of what happens in a boardroom, and how it affects the commercial environment, stakeholders and relationships.” Juggling study with a demanding fulltime management role, Mark was able to complete his MBA in 18 months due to recognition of prior learning, which gave him credit for his financial background. “It meant I spent one less year studying, it was a huge benefit. The financial units weren’t of interest to me, instead I wanted to understand the areas of business I hadn’t already been exposed to.” “It was challenging, but it teaches you about mental toughness. You become good at time management and prioritising.”

“I’d encourage others to study. It builds leadership, decision-making and strategic thinking skills. It’s worth it, the benefits definitely outweigh the effort.” Mark is now working as Financial Controller at New Zealand Trucks, and says the knowledge he gained during his MBA guides his decision-making. “My MBA has given more definition around governance, risk, people and culture. In accounting you focus on ensuring a return on investment in business decisions, looking for growth and balance for shareholders.” “I’d definitely recommend doing an MBA. There was an active collaboration between MIT and corporates, and they were willing to go the extra mile to be flexible and accommodating.” “If you have the drive and the passion to do an MBA, then why not start early,” he says.


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For people interested in taking their career to the next level, MIT offers a life-friendly international master’s qualification supported locally in Auckland. The programme is designed with flexibility to suit working professionals, and offers recognition of prior learning to fasttrack study based on experience.  Visit email or call 0800 622 322 for more information.

Sponsors renew We’re delighted that all ten of the original GETBA sponsors have renewed for the 2016-2017 year. Their additional financial contribution demonstrates their commitment to the East Tamaki business precinct and to assisting GETBA meet its objectives on behalf of members. We encourage you to show your reciprocal support by giving them the opportunity to be involved in your business should the need arise.

Matrix Security is a business founded on protecting the people, buildings and communities they inhabit, developing solutions tailored specifically to meet the needs of their clients. “For our commercial customers, our security solutions focus on supporting the proper functioning of the business, ensuring business premises, infrastructure and staff have continuity. For residential customers, security extends to ensuring their family, home and assets are safe and secure,” says Scott Carter from Matrix Security. For more information, please call Ravina Ram on 09 579 1567.


Every day ANZ’s team of more than forty banking specialists in the greater East Tamaki area help local businesses plan and achieve their goals. ANZ offers expertise in business and commercial banking, agri business, asset finance, transactional banking and trade. ANZ also has a full service branch and a network of mobile mortgage managers in the area. The ANZ team is proud to be part of the thriving East Tamaki community and to support local events and associations such as GETBA.

With the largest local presence of any broking company in New Zealand, Crombie Lockwood is entrusted with the protection of thousands of businesses throughout the Country. Their focus – “To protect your business and all it provides to you, your family, your staff and their families.” For more information, please contact James Townsend on 021 451499 or email



Bayleys Real Estate is New Zealand’s largest full service real estate company and has enjoyed a long standing relationship with GETBA. Based in East Tamaki for nearly two decades, they have provided real estate and property services to this high performing industrial precinct and look forward to continuing this into the future.


Goodman is an established business with a premium property portfolio and quality customer base. With property assets of over $2.2 billion, it is New Zealand’s leading industrial and business space provider. With substantial estates, including Highbrook Business Park, M20 Business Park, Savill Link and Westney Industry Park, located throughout South Auckland, it’s a portfolio that offers a range of property solutions for its customers.


Monteck Carter is a trusted advisory and chartered accounting firm, based in East Tamaki. Effective and professional relationships are based on mutual trust, support and integrity. So they get to understand your needs, tailor unique business solutions that fit you and build a firm platform for future success.Their success is driven by their vision, their values, their culture and their position in the market.


RSM New Zealand, Chartered Accountants, enjoy a close association with GETBA. Auckland based for 70 years, with offices in Highbrook and Albany, they are committed to working with their clients to provide real value, innovative practical solutions, and to exceed expectations in everything they do. Above all, they are here to inspire and help their clients grow their business. The full range of services they offer can be found on their website.


BNZ Partners is committed to helping East Tamaki business people be good with money, which is why they open up their innovative Partners Centre for educational GETBA events and business owner forums. Their local, experienced bankers are dedicated to providing businesses with tailored banking solutions and can put you in touch with their network of finance and industry specialists. For more information, please contact Aaron Jones on 09 924 9492 or email

Six time NZ winner and 2013 global winner of Microsofts’ Small Business Partner of the Year award, Kinetics have won more Microsoft awards and certifications than any other IT company supporting medium sized business. Making IT work for you, Kinetics delivers practical IT to improve business performance, taking pride in delivering to promise, on time and on budget.

Wynyard Wood is proud to have 20+ years involvement in the Greater East Tamaki business community. With their main office in the Highbrook Business Park, they are literally next door. Wynyard Wood has the expertise to provide a full range of legal assistance, including corporate, commercial, property, family, dispute resolution and notarial. To find out more about their services, please contact Henry Jansen on 09 969 0126.







Repeat offences trending down A pleasing aspect of GETBA’s Crime Prevention security audit service, which operates under the special partnership between Police and GETBA, is the high number of failed repeat offences against companies who have undertaken some of our crime prevention recommendations.

Success stories In one incident, a member had recently installed additional locks and a sensor alarm to their roller door, which foiled an attempted break-in. In another case, a smash glass alarm was set off which forced the offender to abandon their break-in attempt. A motorbike shop that was also regularly targeted has not experienced any further problems since undertaking safeguarding measures as recommended in the post-audit report. The amount of work needed required cooperation from a neighbouring business, whose building had also been targeted in the past when offenders broke in and smashed the adjoining wall to access the stolen items. A simple solution to this was to park the hoist in front of the roller doors to prevent a ram entry. The owner also placed concrete bollards along his wall to prevent further access. There have been no further incident reports on this property since January 2015.

Uptake still needed Whilst uptake of audit recommendations has resulted in these success stories, some businesses are still experiencing break-ins and vigilance is required. Cash continues to be left on premises, despite advice to conceal or remove it from the property. It is important to remember



that even a small amount of cash left on site will encourage offenders to return. In retail premises tills should be left open and visibly empty. Security systems have been found to be working inefficiently so it is important to have your systems regularly checked for maintenance or upgrade requirements.

Double theft incident Theft from vehicles is a frustrating occurrence for all car owners. One member had to recently experience not only his car being broken into, but also his home. The car owner returned to his vehicle after a meal out, only to find that someone had broken into it and gone through his bags. Once a report was filed with the Police, the driver returned home to find his house had also been burgled. It turned out that the car thief had committed both crimes after finding a house remote in the car as well as the driver’s address, giving the thief access to his property. The simple message here is to not leave valuable possessions or personal documentation in your car, unless you want to invite an unwelcome person into your home.

Nifty device We are aware of a GPS device that can be attached to a padlock and provides an alert when it has been tampered with, showing both place and time when this occurs. The same device can also be linked to a tracking system to trace stolen containers, and vehicle batteries which would help lessen the risk of truck batteries being stolen. Please visit our website and view our security provider’s directory for more information on these devices.

links us personally with the area. It also guarantees our mobile patrol officers are always nearby to assist with anything from drive-by checks to a full site bed down. Whatever the need, we’re primed to deliver the protection you can count on.



A well-maintained security system supported by an accredited monitoring and communications centre is essential to the smooth running of your business. Alongside professional patrol response, these services will minimise business interruption caused by theft, criminal damage, the threat of fire, or other emergencies. Matrix Security designs personalised security solutions to help protect property, people and assets. However, without regular inspection, maintenance and repair, your system becomes vulnerable to faults that can be a nuisance or a major security concern. Electronic alarms and video surveillance equipment, in particular, can degrade or become obsolete over time. Nowadays, despite the reliability of most security components, vandalism and improper maintenance procedures can compromise your systems effectiveness and your business operations. By enlisting professional maintenance services, your system will continue to operate at optimum levels, reducing the

expense of unbudgeted emergency repairs or costly false alarms. A focus on best practice security also ensures your system complies with insurance standards and fulfills health and safety regulations. It’s also worthwhile to enlist the help of qualified and experienced technicians to train staff to operate your security system efficiently. Matrix Security offers tailored maintenance and servicing plans to ensure the system performs to expectations – so you can focus on your business. Alongside fault diagnosis, repairs and installation Matrix Security provides effective human intervention with 24 / 7 alarm monitoring and rapid response to security threats. Our office and patrol base in East Tamaki

Staying safe around the clock If you’re expanding your business, connecting to Ultra Fast Broadband, or converting to VoIP phone systems – there’s no better time to consider a security system upgrade. New IP- enabled security systems can be configured for remote monitoring and secure smartphone app control, allowing the alarm status to be checked and changed from anywhere, day and night. Camera systems are also increasing in popularity as advances in technology has enabled easy real-time access to high-quality images. Advances in surveillance capabilities mean security footage can be captured in response to motion detection and sent to a monitoring station. This is resource smart, as no time is wasted monitoring inactivity, and provides valuable information to first responders or investigators attempting to identify perpetrators. Providing the right security technology and a comprehensive service plan is just the start. Crime prevention initiatives and rapid response are vital to protecting your workplaces, people and assets. Don’t compromise your security – speak to our team of experts who will guide you to the right solution and system for your budget and requirements.  Call us today for a free, no-obligation security needs analysis on 09 579 1567 or email us at

Proudly supporting





Steptember Launch Highbrook’s parklands were a beautiful setting for the launch of Steptember. Goodman is the global sponsor of Steptember, a fundraising initiative that encourages individuals and teams to get active while raising money for cerebral palsy. Aiming to complete 10,000 steps a day for 28 days, the purpose of the initiative is to raise vital funds for people living with cerebral palsy – a debilitating condition that affects movement.

The Highbrook Run and Walk 2016

The New Zealand office led the world with an early morning walk around the picturesque esplanade reserve at Highbrook Business Park on 1 September. Led by fitness guru and local Steptember Ambassador Lee-Ann Wann, the group of staff and customers have stepped up to the challenge!

Lee-Ann Wann, Steptember Ambassador and John Dakin, CEO Goodman NZ, launch Steptember at Highbrook.

HAVE YOU VISITED THE FOR SALE & LEASE PAGE ON THE GETBA WEBSITE YET? Supported by local agents Bayleys and Colliers, you can find all commercial industrial properties that are currently available for either lease or sale in the local area. The page is kept up to date weekly with new properties and is your one stop shop to stay updated on recent listings. We provide a snapshot of all the vital info you need and linkage through to the full listing if you want to find out more.  26


This event was also held at Highbrook in September. Over 100 people entered and Matt Collier from Goodman took out first place in the 7km event. Run and Walk Events are a series of five events held between July and October specifically designed for runners and walkers of all abilities, including kids, who are training for any of the ASB Auckland Marathon Events.

Find a new warehouse to go wild about Only Bayleys rewards you with Airpoints Dollars™ when you lease - spend them on something to get the party started. If you’re looking for new business premises, you’re better off with Bayleys because we’re the only agency that will reward you with Airpoints Dollars™. Almost all commercial property for lease in New Zealand is listed with every agency, so by going through Bayleys, not only will you enjoy the ease and customer service of dealing with a single point of contact, you can also treat yourself to travel or something special from the Airpoints™ Store to celebrate your move.

Find your perfect space at or call 0800 BAYLEYS Offer is 1 Airpoints Dollar per square metre leased capped at 1,000 Airpoints Dollars, based on the lease deal going unconditional and the tenant being part of the Airpoints for Business programme. Airpoints for Business terms and conditions apply.

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Profile for GETBA

Focus Spring 2016  

GETBA Spring 2016 magazine Focus on logistics and distribution

Focus Spring 2016  

GETBA Spring 2016 magazine Focus on logistics and distribution

Profile for getba