Logistics & Materials Handling February 2012

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inside logisticsmagazine.com.au

VOL42 ISS1 FEBRUARY 2012

Supply Chain Forklifts & Stackers Factory Materials Handling Warehousing Mercury Awards Launch Issue

Post Print Approved PP352583/00436

Choosing a battery-electric forklift is now child’s play.

!VAILABLE AS AN OPTION

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*AITA Statistics Ytd December 2011. #Source: Logistik Magazine 2011. Pictures are for illustration purposes only. Actual colour of products may differ from picture displayed.

Make sure your material handling provider ticks all the boxes.

Whether you require a single forklift or a fleet, we want to show you why Toyota Material Handling sells more forklifts than any other company. We’ve got Australia’s biggest range to provide you with the best possible material handling solutions, and

the customer service and parts support you’d expect from the world leader .# So if you’re looking for a forklift provider who really ticks all the boxes, talk to your local Toyota Material Handling branch today.

1800 425 438 www.toyotamaterialhandling.com.au

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This issue February 2012

Basic, better, best Using mobile technologies to improve road deliveries.

24

behindthecover inside logisticsmagazine.com.au

VOL42 ISS1 FEBRUARY 2012

Supply Chain Forklifts & Stackers Factory Materials Handling Warehousing Mercury Awards Launch Issue

Choosing a battery-electric forklift is now child’s play.

contents 04 Bulletin Board Koncranes celebrates 25 years Forklift apprentice wins US tour 06 Trends &

Developments 2012

Post Print Approved PP352583/00436

Asia-Pacific leading cloudbased modelling Mobile printing solution

10 Forklifts, Stackers

& Trolleys

New contender enters heavyweight market Pantograph-style reach truck Power steering in stackers 12 Warehousing Preston becomes home to Fashion Biz

!VAILABLE AS AN OPTION

TOYOTA Material Handling Australia is poised to launch a new range of 1.5 to 3tonne rated capacity at 500mm load centre four-wheel counter-balance battery electric forklifts. The new improved energy efficient Toyota 8FBN series forklift meets customer demands for longer operating times between charges, improved safety and environmental performance, reduced operator fatigue, and increased durability and water resistance. There are five new models, ranging from 1.5 to 3 tonne rated capacity at 500mm load centres, with a choice of masts, hydraulic controls and attachments, as well as numerous optional accessories, a cold storage pack for operating at minus 45 degrees Celsius and a corrosionprotection pack. TMHA 1800 425 438, www.toyotamaterialhandling.com.au

08 Factory Materials

Handling

Refurbished forklifts suit operator training Stainless steel scud

14 Bulk Handling Loscam's largest pallet repair facility Handheld barcode reader

16 Mercury Awards Get your nominations in now!

Sponsor profiles 24 Supply Chain Achieving best practice deliveries on the road Dynamic supply chains 28 Transport & Logistics Looking to the clouds 3PL key in emerging markets The benefits of business and IT alignment

mercuryawards Official 2012 launch coverage!

16

PUBLISHER: Michelle Graves e michelle.graves@reedbusiness.com.au DEPUTY EDITOR: Annie Dang t 02 9422 2964 e annie.dang@reedbusiness.com.au GROUP EDITOR: Sarah Falson t 02 9422 2480 e sarah.falson@reedbusiness.com.au GRAPHIC DESIGNER: Justine Dunn t 02 9422 8696 e justine.dunn@reedbusiness.com.au KEY ACCOUNT MANAGER: Michael Northcott t 0448 077 247 e michael.northcot@reedbusiness.com.au QLD ADVERTISING MANAGER: Sharon Amos t 07 3261 8857 m 0417 072 625 f 07 3261 8347 e sharon.amos@reedbusiness.com.au PO Box 3136, Bracken Ridge, Qld 4017 PRODUCTION CO-ORDINATOR: Mary Copland t 02 9422 2738 e mary.copland@reedbusiness.com.au Average Net Distribution All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher. ISSN 1832-5513 Copyright Reed Business Information.

Published by Reed Business Information. (ABN 80 132 719 861) Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Australia t 02 9422 2999 f 02 9422 2966 Printed five times a year, Logistics & Materials Handling is inserted in the February, April, July, September and December 2012 issues of Manufacturers’ Monthly, FEN, Australian Mining, Electronics News, Food, and PACE magazines with a distribution of 35,000.

logisticsmagazine.com.au

Period ending September 11 34,326

February 2012 Logistics&MaterialsHandling | 3

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bulletinboard LOGISTICS AND MATERIALS HANDLING NEWS FROM AUSTRALIA AND AROUND THE WORLD

Apprentice wins US tour

Konecranes celebrates 25 years of growth

A NEW South Wales forklift apprentice has won an industry competition to study at Raymond Forklift Corp’s headquarters in the US. The US tour is being offered as part of Toyota Material Handing Australia’s (TMHA) annual National Skills Competition. The winning apprentice, Andrew Borsato, is based at TMHA’s Coffs Harbour branch.

Borsato won the prize after competing in a two-day practical and theory test at the company’s Sydney headquarters. Borsato is the second apprentice forklift technician from the NSW North Coast to win the award in three years. TMHA supplies the

CRANE manufacturer and crane servicing company Konecranes is celebrating 25 years in Australia, with plans for expansion underway to complement the business’s 500% growth over the past decade.

A ceremony to mark the achievement was held at the company’s new Australian headquarters in Ingleburn, Sydney, where Konecranes president and CEO Pekka Lundmark, and Australasian managing director Brad Hyem, spoke of major initiatives in the mining, oil and gas, ports, steel and industrial infrastructure development sectors.

TMHA National Skills Contest winning apprentice Andrew Borsato, with TMHA executive vice president and COO Steve Takacs (left), and TMHA president and CEO Terry Unnai.

Raymond Forklift Corp warehouse product line in Australia.

Three fully-qualified forklift technicians also won prizes in

TMHA’s skills test, each taking home a $2,000 voucher for skills development.

area. The Good Guys, Blackwoods, Covs, Rockingham Hyundai/Suzuki, Toll Ipec and Veale Auto Parts all took part in the program.

A program manager at Challenger Institute, Sherrell Crisp, said the feedback and support that the students received from local industry has been positive.

“The students stepped up to the plate very quickly,” Crisp said.

www.toyotaforklifts.com.au

Student Sarah Murphy displays her certificate from The Good Guys.

Challenger Institute of Technology 08 9239 8200, www.challenger.wa.edu.au

Enhancing IT education WISETECHGLOBAL is ramping up its involvement with tertiary IT education through increased scholarships and provision of free software. The company is a longtime corporate sponsor of the Bachelor of Information Technology (BIT) Scholarship program at the University of

Technology Sydney.

“This year, we sponsored six first year BIT students as well as students in their second and third year of the highly selective degree program. We’re looking to increase the number of scholarships next year. We also take a number of students on

4 | Logistics&MaterialsHandling February 2012

CEO Pekka Lundmark addresses the 25th anniversary celebrations.

The ceremony also celebrated the Konecranes Group’s recent expansion into Gladstone and the Hunter Valley, bringing its sales and service network to 31 locations.

Konecranes 1300 937 637, www.konecranes.com

TMHA 02 8706 6129,

Experience gets careers moving A HANDS-ON training course has seen a group of senior high school students get a taste for working life in the transport and logistics industry.

The Challenger Institute of Technology course, designed to engage year 11 and 12 students at Safety Bay Senior High School in Western Australia, consisted of oncampus activities along with industry placement in local businesses in the Rockingham

Konecranes president and

board as interns throughout the year so they get real world experience as well as a taste of corporate Australia,” said WiseTechGlobal chief executive officer, Richard White.

WiseTechGlobal 02 8001 2200, www.wisetechglobal.com

Nestlé’s smart robot win A ROBOTIC layer picking system integrated by Dematic for Nestlé Australia has won three industry awards at the Supply Chain and Logistics Association of Australia’s (SCLAA) 2011 Australian Supply Chain and Logistics Awards.

The system took away the Manufacturing Logistics, Storage and Handling of Materials, and Supply Chain Management Awards for transforming workplace safety and significantly improving the quality and productivity of mixed pallet assembly in a world-first project at Nestlé’s Arndell Park national distribution centre (DC) in Sydney’s western suburbs.

The high volume DC stores and distributes several hundred products from Nestlé’s consumer food and beverage, food service and pet food businesses. Nestlé’s innovative layer picking solution eliminates

The system utilises Dematic’s PickDIRECTOR control system, FreePICK Maximiser software, and PickDIRECTOR stock ordering system.

the need to manually handle around four million cases.

Integrated by Dematic, the new 4-axis robotic layer picker is equipped with a dual bellows and vacuum-gripping head capable of handling up to 80% of Nestlé’s product range, covering a broad range of packaging types from cartons to bags and bottled beverages.

Dematic 02 9486 5555, www.dematic.com.au

logisticsmagazine.com.au

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Warehouse Solutions Lift trucks and warehouse storage solutions for all applications.

• Storage solution design • Racking • Shelving and binning • Raised storage areas • Work benches • Conveyors and live storage systems • Consultancy • Battery changing systems

Crown’s worldwide experience in mobile and fixed storage solutions brings a totally new and innovative approach to the Australian logistics industry.

Installing state-of-the-art products from one of the world’s largest logistics system suppliers, Crown combines materials handling expertise with real world knowledge and experience for a totally integrated approach.

Contact the team at your nearest Crown branch to find out more.

Warehouse

Solutions

1300 131 604 crown.com/au

There is nothing like a Crown, for picking it up and putting it down.

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trends&developments2012

Leading the way with Cloud-based hosting LOGISTICS service providers, both large and small, are embracing cloud-based hosting as a way to cut costs, IT infrastructure and time managing supply chains.

“Since launching the hosting platform just over six months ago we’ve seen unprecedented worldwide demand with more than 200 companies adopting the solution.

Asia-Pacific companies are leading the way, with significant levels of uptake across EMEA and the Americas,” says CargoWise global IT manager, Khurram Mahmood.

Australia-based Evans International Freight Consolidators uses CargoWise Hosting, allowing them to reduce costs, accelerate business results and free up working capital for expansion into new markets.

“We needed a scalable solution,” said Evans founder and manager, Lance Evans.

Cloud-based systems are becoming more popular as a way to reduce technology infrastructure costs.

“We’re an extremely ambitious business that is expanding into new geographies. We need a software solution that can change with us and CargoWise’s software is able to do that.

“The on-demand hosted solution lets Small to Medium Enterprises (SMEs) tailor their technology solutions for their exact needs, and then provides access via the internet, which reduces their costs and gives them easy access to the best

THE PERFECT PALLET Too much time is wasted in business managing pallets or managing problems that pallets create.

Does your business keep stock of dirty, broken or second hand pallets? Does your business use pallets that create manual handling, contamination or fumigation issues? Visy’s Fibre Pallet is the perfect pallet to eliminate these problems.

technology for their business, as well as IT experts and support which enables them to focus on their core business objectives.”

CargoWise is reportedly the first logistics technology company to offer a comprehensive on-demand hosting solution. Hosting their enterprise software systems allows users to streamline technology, reduce systems downtime and enhance logistics management systems. In particular, it removes

initial capital outlay, which can prevent smaller companies from reaping the benefits of a comprehensive enterprise IT system.

New York-based Norvik Cargo International implemented the cloud-based system recently, as a way to reduce technology infrastructure costs.

“Managing a freight forwarding operation with offices in New York and Miami in the information age can be challenging. Having experienced downtime using a terminal server we made the decision to migrate to CargoWise Hosting.

Since then our downtime has been reduced by at least 80%, and our customer satisfaction and overall productivity has significantly increased,” says Norvik President, Norman Coelho.

CargoWise 02 8001 2299, www.cargowise.com

Mobile printing solution DATAMAX-O’NEIL has launched the PrintPAD 99EX printing solution, designed to integrate with Honeywell’s Dolphin 99EX Mobile Handheld Computer.

Offering mobile workers the convenience of a ‘carry, charge and communicate’ solution, the PrintPAD 99EX reportedly combines a sleek, ergonomic design with rugged reliability. The unit is said to meet the demanding requirements of route accounting, direct store delivery and other field service applications.

Honeywell’s Dolphin 99EX mobile computer is designed for front-line workers operating indoors and outdoors. Combined with Datamax-O’Neil’s PrintPAD cradle and printer, the integrated solution is designed to take mobile worker productivity to a new level while helping to reduce operating costs, says Datamax-O’Neil.

Datamax-O’Neil, www.datamax-oneil.com

UHF tags for RFID applications

Let us demonstrate the strength, moisture resistance and value of the Visy Fibre Pallet by contacting Visy Fibre Specialties on (03)9247 4222 or visit our website www.fibrepallets.com.au.

VISY – 100% Australian owned and operated

03 9247 4222 www.visy.com.au

HID GLOBAL has launched a new line-up of InLine Tag Ultra passive contactless transponders, which it claims are the most advanced general-purpose UHF tags available. The portfolio is designed to meet most demanding applications, including automation, logistics, returnable transport items and industrial waste management.

According to the supplier, the portfolio expands the potential application of UHF technology by providing increased reliability where less advanced tags fail. The tags’ broadband capabilities reportedly meet worldwide standards, making international logistics processes and infrastructure simpler and more cost-effective. The tags are available in five configurations for mounting on various materials using standard screws, industrial adhesives or welding.

HID Global, www.hidglobal.com

6 | Logistics&MaterialsHandling February 2012

logisticsmagazine.com.au

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Introducing the new utility lift truck

Simple to Use, Easy to Maintain and Affordable to Own: UTILEV® – Utility you can trust.

The UTILEV® range of affordable forklift trucks delivers reliable and costeffective handling solutions, for a no-nonsense, uncomplicated approach to materials handling.

UTILEV® trucks meet the demands of a wide range of light to medium duty industrial and commercial applications, while keeping operating costs to a minimum.

UTILEV® products will be available from a network of experienced, independent dealers and backed by a wide range of support services.

For more information on how UTILEV® can add value to your materials handling operations, visit www.utilev.com

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factorymaterialshandling

Refurbished forklifts suit operator training A SYDNEY operator training school is endorsing company-refurbished Toyota forklifts, claiming they are excellent value-for-money, and ideal for training purposes.

Ultimate Driving School commissioned a refurbished 1.5-tonne payload Toyota 6FG15 forklift in June to use at its training facility in Smithfield, New South Wales. The machine was refurbished at Toyota Material Handling's Moorebank workshop.

"When you're teaching clients to operate a forklift safely, you're interested in ease of operation and reliability above all else. In the training situation and with limited hours of operation, we don't need a new machine – so

the refurbished Toyota forklift represented good value,� said Principal Claude Baseotto.

"I could have bought a second-hand machine through the classified advertisements, but I'd heard good reports about the refurbished machines and it was better to buy from a maker with a good reputation. It was the best solution and it does the job well."

Ultimate Driving School, founded in 2004, has two forklifts and a skid-steer loader at its Smithfield training facility. It also has a back hoe, front-end loader, three trucks and a trailer.

Toyota Material Handling Australia 1800 425 438,

Ultimate Driving School uses a refurbished 1.5-tonne payload

www.toyotamaterialhandling.com.au

Toyota 6FG15 forklift at its Smithfield training facility.

Bright work lamps for materials handling applications FLEXIBLE Drive Agencies has revealed a new line-up of ECCO Work lamps, designed to produce bright, white light in materials handling applications.

Models in the range include spot or

8 | Logistics&MaterialsHandling February 2012

flood beam patterns offering halogen, HID (Xenon) and LED lighting. The halogen range alone includes square, rectangular, round, pedestal mount, side mount, flush mount, single beam

and twin beam options.

The ECCO line-up includes: eight LED models that offer over 80,000 hours of maintenance-free life expectancy, coupled with low amp

draw; and six HID (Xenon) models with 2, 500 hours of tube life, and very bright light output.

Flexible Drive Agencies 1300 363 735, www.fdrive.com.au

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factorymaterialshandling

Handheld printer terminal

Stainless steel cleaning scud

CASIO Computer’s IT-9000-GMC25E Handheld Printer Terminal is capable of reading contactless smart cards and magnetic cards. The model is suited for operations that require printing on-the-spot.

The IT-9000-GMC25E is an all-in-one handheld printer terminal equipped with: a thermal printer; near field communication (NFC) reader/writer designed for contactless smart cards and radio-frequency identification (RFID) tags; a C-MOS Imager for The terminal offers scanning 1D and 2D symbologies; a magnetic card data reading, transmission and reader; 3G wireless WAN capable of high-speed printing. downlink packet access (HSDPA); GPS capabilities; and an auto-focus digital camera.

The terminal can reportedly read data that has been recorded on cards or tags, and symbologies printed on labels or other materials. It can access databases via wireless WAN, and issue receipts on-the-spot. It also allows users to send records of issued receipts, along with images captured with its digital camera, and data such as positional information determined using the GPS function to back-office systems.

Designed with security in mind, the IT-9000-GMC25E can be used securely for solutions which require handling of important information, claims ASP Microcomputers. If the handheld printer terminal is lost or stolen, data stored internally can be erased remotely via a command sent by an administrator over a wireless WAN.

THE Stainless Steel Scud high pressure water blaster from Aussie Pumps is designed specifically for cleaning in corrosive environments.

The new version has pressures up to 4,000psi and flows up to 21lpm.

The Aussie Scud was developed in Sydney, in a bid to provide something The Aussie Stainless Steel Scud offers a stainless steel hose reel, and is powered by locally-made that could a Yanmar diesel engine. challenge the European world leaders in cleaning machines, says Aussie Pumps.

The heart of the unit is a ‘Big Berty’ Bertolini triplex pump, running at 1,450 rpm and driven through a close coupled fully enclosed gearbox. The machine comes in the company’s Scud frame, with four 13-inch pneumatic tyres with heavy-duty bearings for easy mobility.

A range of high pressure accessories are part of the Scud package, including flat surface cleaners, portable drain cleaners, high pressure hose reels, turbo lances, grit blasters and telescopic extension wands.

ASP Microcomputers 03 9578 7600, www.asp.com.au/casio

Aussie Pumps 02 8865 3500, www.aussiepumps.com.au

17-19 APRIL 2012 MELBOURNE EXHIBITION CENTRE

REGISTER TO VISIT MATERIALSHANDLING.NET.AU

logisticsmagazine.com.au

LIFT SMART MOVE SMART

CO-LOCATED WITH

February 2012 Logistics&MaterialsHandling | 9

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forklifts,stackers,trolleys

New contender enters heavyweight market CROWN’s new 18 tonne lift truck, the CDV180S-7, is the company’s first foray into the heavyweight league.

Crown claims it offers more power than comparable IC vehicles, along with a 1,200cm load centre.

The unit is suitable for industries such as timber yards, mines, steel mills, paper merchants, and importers and exporters of heavy products.

Crown reportedly invested heavily in both time and money to ensure that its new offering brought New Crown 18 tonne truck sets benchmark for gruelling yard work. advancements to the lift truck industry.

The CDV180S-7 boasts a new generation Tier 3 electronic control 254 HP 7.6l diesel engine that Crown claims provides high torque at low revs, reduces fuel consumption, and meets or exceeds current environmental requirements. According to the company, this power and efficiency is matched by advanced synchronisation of the drive train with the vehicle’s hydraulics system.

The driver cabin has a centrally-positioned, heated leather seat that gives a clear, uninterrupted view of the forks. Heating and cooling comprises separate air-conditioning and heating ducts for the dash and the roof, as well as an efficient defrosting nozzle for the front window. The dash is fitted with both digital and analogue instrument panels, as well as a technically-advanced sound system.

Additional features of the CDV180S-7 include a rear view camera, distance-measuring infrared camera, wheel steering sensors, weight scales and an air compressor for general cleaning and maintenance of the driver’s seat and footwell.

Crown Equipment 02 8788 0000, www.crown.com/au

Pantograph-style reach truck Nissan has developed its first pantograph-style reach truck, the SRX Platinum Series, available in three capacities ranging from 1,360–2,000kg.

Entering and exiting the truck has been made easy, due to a low step height.

The truck is available The side stance design is said to provide comfortable in three capacities ranging from 1,360kg forward or reverse driving to 2,000kg. and includes a gentlysloped floorboard, which sits atop four vibration isolators, offering a relaxed driving position throughout a standing shift.

The reach truck also features a dual spring suspension system in the caster design which is said to add to the smoothness of the ride.

The truck’s dash includes an LED display to communicate truck status and operator warnings.

Powerlift Material Handling 1300 550 607, www.powerlift.com.au

1300 880 335 aalhysterforklifts.com.au 10 | Logistics&MaterialsHandling February 2012

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forklifts,stackers,trolleys

Toyota’s 8FBN series electric forklifts TOYOTA Material Handling Australia (TMHA) is poised to launch a new range of four-wheel, counter-balance electric forklifts, with capacities from 1.5 to 3 tonnes at 500mm load centre.

The Toyota 8FBN series forklifts reportedly meet customer demands for energy efficiency, longer operating times between charges, improved safety and environmental performance, reduced operator fatigue, and increased durability and water resistance.

There are five new models in the range, with a choice of masts, hydraulic There are five new models, ranging from 1.5 to 3 tonne rated controls and attachments. A cold storage capacity at 500mm load centres. pack for operating at minus 45 degrees Celsius and a corrosion-protection pack are also available, along with a range of other, optional accessories.

Models in Toyota’s new 8FBN forklift series incorporate new AC power systems, more efficient motors and controllers, improved equipment layout, and an all-new pedal-stroke detection regenerative brake system, says the company.

Pedal-stroke regenerative braking reportedly allows the new Toyota 8FBN forklift models to improve the efficiency of energy recovery, thereby increasing operating times.

TMHA claims the bottom line from these improvements is an approximate 5% in operating times over the company’s 7FB series models.

Toyota Material Handling Australia 1800 425 438, www.toyotamaterialhandling.com.au

logisticsmagazine.com.au

Power steering in stackers LENCROW’S new EP walkie stacker units come standard with power steering on all models above 1,400kg capacity.

The new range has been built to comply with OH&S standards, with the power steering making them suitable for all The stackers have a lift range of up operators to handle. to 5,000mm.

The range includes units up to 2,000kgs and lift heights up to 5,000mm, making them suitable for warehouse requirements, the company says.

The new series also incorporates AC operation which is said to offer outstanding response as well as provide longer duty cycles from the 280amp hour battery.

According to Lencrow, the new EP units are also easy-to-use because they offer a wide view mast for better user vision.

Lencrow 1300 536 276, www.lencrowgroup.com.au

February 2012 Logistics&MaterialsHandling | 11

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warehousing

Preston becomes home to Fashion Biz with new DC A new 13,000-square-metre DC, designed and installed by SSI Schaefer, ensures customers in every corner of Australia receive the same levels of service and delivery from this privately-owned clothing empire.

S

INCE establishing in 1997 Fashion Biz has grown at a remarkable pace and the opening of the Preston Distribution Centre (DC) in New South Wales marks their place as the largest wholesaler to trade in corporate and promotional clothing in Australia.

Now with showrooms and warehouses across three countries, the recent addition of the 13,000-square-metre facility allows further expansion and growth for this privately-owned clothing empire.

According to Fashion Biz general manager, Harish Raniga, the new Preston DC was built to ensure that customers in the Northern States of Australia were receiving the same turnaround and delivery service as their Southern counterparts.

Fashion Biz selected the physical site at Preston due to its location to all major arterials that are required for northern state distribution.

The facility is situated near the M5, M2 and M7, allowing ideal access routes for all road deliveries in to both New South Wales and Queensland.

The site also houses a large showroom above the offices so that customers can touch, feel and see the clothing, fabrics and colour ranges.

“As New South Wales has always had the largest customer base and covers 60% of our company sales, it was critical for the future growth of this company to improve the customer satisfaction levels in this state,” Raniga said.

“We knew that it was time to build a new facility that would cater to the needs of our northern state-based clients and also allow for future expansion to the overall business.

Preston Distribution Centre The 13,000-square-metre facility was developed in coordination with SSI Schaefer and has a conveyor rack and flow rack, a two-tier narrow aisle high rise, and a wire guidance system serviced by Crown Stock picker trucks. Each bay comprises of multi levels, all wire decked to suit sprinkler requirements and product load requirements.

The Preston DC comprises of 14 double entry racks, each with 28 bays long and 12 levels high.

12 | Logistics&MaterialsHandling February 2012

of the ceiling and felt that this was also a major selling point when we selected SSI Schaefer as our warehouse partner. The racking is 12 metres in height ensuring maximum storage capabilities for the facility.”

The Schaefer racking can handle 296,782 cartons and 216 pallets of stock holdings.

The Schaefer racking has been designed to handle approximately 296,782 cartons and 216 pallets of Fashion Biz stock holdings at any given time. The racking is made up of 1,180 square metres of LS600 with raised storage area, with a finished height of 3 metres. The LS600 racking, or Long Span racking, is designed to optimise individual storage requirements and create maximum storage capacity with minimum storage space.

SSI Schaefer worked with Fashion Biz to ensure that the facility was designed to maximise the ceiling height in the DC, building full ceiling height racking to guarantee Fashion Biz had cube utilisation in all parts of the site.

“SSI Schaefer racking is unique in that it is flexible and modular and can easily adapt and expand as our business does. When our needs change so can the racking and that is a tremendous benefit to this partnership,” Raniga said. ”We were also very impressed with the capability to have the racking built to the full height

WMS helps pick accuracy Fashion Biz selected a Manhattan Associates Warehouse Management System as part of the Preston DC development. Though the system is still new, the staff have improved their pick and pack accuracy at a rapid rate.

Staff can now pick their own products with the new system. With the WMS system staff are told where to pick their orders and what is needed in the order.

The labelling and scanning system that is linked to the WMS ensures that there is very little paper work for the staff and picking and packing errors have dramatically reduced. On average, each picker can pick 8 orders at one time where before they could only pick one order.

The new system allows staff to manage multiple discreet picking which ultimately reduces errors in the pick area.

Raniga added that the development of the Preston DC not only ensures faster delivery turnaround for the Northern States of Australia, but it also ultimately improves customer satisfaction levels.

The design maximises cube space for daily stock holdings, and ensures that any future expansion or growth can be catered for.

The racking maximises the storage capacity of the site and the new WMS system allows faster and more efficient pick accuracy for the staff.

“Overall staff production levels have dramatically improved, our customers in the Northern States are happier and we have the capabilities to expand the facility as our business grows,” said Raniga.

“Fashion Biz is extremely proud of the design of the Preston DC and we believe that it has allowed us to streamline our operations and improve customer service and support.”

SSI Schaefer 1800 724 233, www.ssi-schaefer.com.au

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bulkhandling - Fill or - Empty -

Loscam’s largest pallet repair facility opens in Melbourne

Bulk Bags Dust Free

BY ANGELA WELSH TM

Bulkafil , for filling Bulk Bags Latest Technology, one operator

Bulkaflo, for emptying bulk bags

Powder handling requires good experience and the right selection of equipment - trust the Professionals.

HOPPER WALL VIBRATION

MATERIAL AERATION

BLOWER OR COMPRESSED AIR

Flow and Transfer aids

Hopper cutaway of fluidizer

SOLIMAR aerators are the ‘quick fix’ solution for powder flow problems.

TM

shown mounted under a bulkbag discharge station.

- a small economical pneumatic conveyor

The Microveyor

for powders and granules. Versions to suit all needs, from 100 kg/hr to 10 te/hr.

Rates to 300 te/hr; vacuum systems too.

LOSCAM has opened a $20 million purpose-built pallet repair facility and depot in Melbourne’s west.

Located in Truganina on 31,500 square metres, this is the largest facility of its kind for the company and the first major capital expenditure for the Australian business by China Merchants Group since it acquired Loscam in 2010.

The repair facility, designed and built by DEXUS Property Group, provides undercover capability of 6,000 square metres, and an adjacent office building adds another 300 square metres. Seventy staff will be located on site.

Loscam chief executive officer Mark Daniel said the depot will alleviate the demands of repairs on facilities outside Victoria.

“With the increasing amount of industry moving into the area west of Melbourne, we see this as a fantastic opportunity for continued growth in the business,” he said.

Safety and environmental features were a priority in the design of the facility, Daniel said.

Loscam’s new repair line in action at the factory launch.

“The new repair equipment, for example, is expected to use 40% less electricity, and the layout ensures maximum efficiency of space and traffic flow,” he said.

Rainwater harvest technology, bio retention and tri-lighting has been installed, as well as translucent roof sheeting, which considerably reduces lighting consumption.

With the capacity for up to 11 repair lines and 250,000 pallet intakes, Daniel said the facility would set a precedent for the company's future depot developments across Asia.

Loscam 03 9843 3700, www.loscam.com

Handheld barcode reader Ease of a single operator, lifting boards

TAWI VACUUM-ASSISTED LIFTING Many years experience in developing special models to lift a very wide variety of items, eg. multiple drums, kegs, paint tins, boards, plates, pumps etc.to 300 kg.

Our team would be pleased to arrange a free, real-life demonstration of Vaculift or VacuCobra using our trailer.

High speed Cobra in action

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The Professionals in Powder Handling and Packaging Systems Head Office VIC - Tel: (03) 9457 8280 Fax: (03) 9457 7695 MHG1112

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14 | Logistics&MaterialsHandling February 2012

INTERMEC’S SG10T handheld barcode reader, designed for small-to-medium businesses, reportedly provides superior performance in a stylish pointand-shoot form factor.

The new imager uses solid-state imaging technology to read all common 1D barcodes and is suitable for entrylevel, counter-top reading needs.

The system is designed for businesses requiring accuracy and efficiency in tracking the storage, movement, accounting and sales of inventory and assets. The unit is suitable for manufacturing, logistics and other industrial environments.

According to Intermec, the barcode imager can be used straight from the

The barcode reader can be used straight out of the box.

box. The system is compatible with the company’s Windows-based EasySet PC programming tool, which produces barcodes for custom applications.

Intermec 02 9330 4400, www.intermec.com.au

logisticsmagazine.com.au

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Relocatable brackets hold 25kg SWIFT Metal Services’ Cable-Buddy is a relocatable, magnetic hanging bracket for cables, hoses and pneumatic lines in the warehouse. It gets cables up off the ground, eliminating trip hazards on-site.

The Cable-Buddy can hold up to 25kg in the vertical plane. Permanent and temporary installations are available, and an adjustable HDPE strap is designed to support various quantities and sizes of hoses, cables and pneumatic lines.

These brackets can be utilised to improve safety across a broad range of industrial, commercial and underground sites, along with workshop applications where large projects or machinery necessitates the use of long leads or hoses during construction.

This new range joins Swift’s line-up of brackets, components and parts in a

The brackets are suitable for holding hoses, cables and pneumatic lines.

variety of materials including mild steel, stainless steels, aluminium and zinc plate.

Swift Metal Services 1800 626 525, www.swiftmetal.com.au

Trolleys, mobile workbenches tailor-made for different sites BAC Systems’ Silver M Catalogue contains details of its latest range of mobile storage units, updated to transform the modern workplace.

BAC Trolleys and Mobile Workstations are adaptable to a broad range of applications, suitable for the harsh conditions found in the mining and defence Industries as well as the space constraints of the automotive and educational industries, claims BAC. The modular nature of the BAC Mobile Equipment means that the enduser can customise the storage locations to suit his/her personal requirements. Optional features, such as the BAC Codelock Keyless System, enhance and refine the mobile solution, the company says.

BAC Mobile Trolleys and Mobile Workstations have a series of Castor

BAC Mobile Trolleys and Mobile Workstations offer a series of Castor options.

options for various mobility requirements. Whether it is the heavyduty Urethane Castors used for rough surfaces or the Rubber Wheels used for more delicate internal floors, all castors are securely anchored to the structure of the mobile unit, says BAC. BAC Systems 02 9832 2777, www.bacsystems.com.au

Pneumatic bulk bag discharging system FLEXICON’S Bulk Bag Discharging System with integral Pneumatic Conveying System transfers material from bulk bags to silos and other storage vessels. The discharger portion of the skid-mounted system includes a cantilevered I-beam with electric hoist and trolley to lift and position bulk bags.

Flexicon says a Spout-Lock clamp ring forms a high-integrity seal between the clean side of the bag spout and the clean side of the equipment, while a Tele-Tube telescoping tube maintains constant downward pressure on the clamp ring and bag spout, elongating the bag as it empties.

Material flow is aided by Flow-Flexer bag activators that raise and lower opposite bottom sides of the bag in timed intervals. A Bag-Vac dust collector creates negative pressure to collapse empty bags prior to retying and disconnection, eliminating dust emitted during empty bag flattening.

The unloaders’ surge hopper is equipped with a high capacity rotary airlock valve to feed material into a pneumatic conveying line leading from a positive displacement blower at high rates.

Flexicon Corporation (Australia) 1300 353 942, www.flexicon.com.au

Hako has a complete range of industrial sweepers and scrubber-driers for industrial and warehouse environments.

Made in Germany, Hako has the right machine to tackle heavily soiled floors and large dusted areas, keeping your site and environment safe and clean. Contact us today for an obligation-free, on-site demonstration.

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Service February 2012 Logistics&MaterialsHandling | 15

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Race to the top in 2012 Don’t miss out on your chance to be applauded for your contribution to the numerous industries that rely on innovation in Australia’s logistics and materials handling sector today, writes Sarah Falson.

HE 2012 Logistics & Materials Handling Mercury Awards is now open for business, with companies encouraged to enter themselves or their peers into any of nine niche categories for their chance to be recognised for their business success over the past 12 months.

Last year, over 200 logistics and materials handling industry professionals gathered at Sydney’s Watersedge to garner insight into the high level of innovation achieved by their industry over the year.

This year’s Mercury Awards, now in its seventh year, is expected to be even bigger, beating last year’s record 40 nominations from across Australia.

the area where potential cost savings are rife. Materials handling comes in the form of many systems, including: bulk handling solutions; data capture & labeling; factory materials handling systems; forklifts, stackers & trolleys; hazardous goods handling systems; packaging & packaging equipment; and warehousing equipment. This category helps to reward those often unsung heroes who supply or implement a smart materials handling solution that helps boost safety, efficiency and sustainability.

Supply Chain Innovation:

T

Official 2012 categories Industry awards programs like the Mercury Awards are a great way to raise morale in the workplace, reward a co-worker for their hard work, or congratulate yourself for a job well done. The Mercury Awards is also a key platform for logistics and materials handling professionals to network with each other, and showcase the latest innovations implemented by their business over the past 12 months.

Nominations are now open for the following categories: Logistics Leader: The winning individual or company in this category will be a proven industry leader in the area of logistics strategy and supply chain management.

Top Third Party Logistics Provider (3PL): Many businesses have identified logistics as a strategic point of benefit for their company. Providers of the future will offer integrated, end-to-end solutions enabling significant operational and cost performance improvements. This award recognises innovative approaches taken by 16 | Logistics&MaterialsHandling February 2012

Nominations are now open for the 2012 Mercury Awards; last year, over 40 companies and 200 industry professionals gathered to witness the winners make history – which is the biggest turnout ever.

Australian 3PLs, LLPs or 4PLs to develop relationships and technologies that afford clients significant competitive advantage.

Young Professional of the Year: This category provides an opportunity for a young logistics industry recruit to demonstrate excellence in the provision of services, development of strategy or supply chain management, including consulting services.

Technology Application: Voice directed order picking, RFID, GPS, smart conveyors and modular automated warehousing systems are just some of the recent advances in supply chain and distribution technology. Winners in this category will have creatively applied a technology to leverage competitive advantage for their own business or that of a client.

Best Green Initiative: The transport and materials sectors represent two of

Australia’s fastest-growing sources of emissions. Winners in this category will demonstrate a highly-innovative approach to ‘greening’ the supply chain, including waste reduction, through a specific project within the organisation. Consideration will also be given approaches taken to measuring environmental and/or carbon footprint.

Warehousing and/or Storage Solution: No good product supplier gets by without a warehouse, or without outsourcing their warehousing to a third-party supplier. This category rewards technology/solution suppliers, and warehouse operations for developing or installing a smart warehousing system that helps hike productivity, supply, safety and the bottom line.

Materials Handling Solution: Materials handling is the backbone of any supply chain strategy and is often

Supercharging your supply chain can save millions of dollars in the long-run.

What initiatives has your company taken to improve its supply chain, and reap customer benefits as a result? This category will reward companies that have implemented new technologies, solutions or theories to their company’s supply chain, which has resulted in a measurable and positive outcome for their business.

Best of the Best: The winner in this category will be selected from among all finalists as the highest overall achiever of the group.

Nominate your company now Entry is easy: just go to the Mercury Awards website (address below) and download an entry form. Those entrants who are successful in entering the finalist round will be sent two free tickets to attend the gala dinner ceremony in Sydney on 6 September, and will also have a snippet of their entry published in the official Finalists Issue in September 2012.

To enter the Mercury Awards visit: www.logisticsmagazine.com.au/awards For more information email: editor@logisticsmagazine.com.au To sponsor a category email: mark.ryu@reedbusiness.com.au

logisticsmagazine.com.au

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aximising running time The downtime associated with battery changing and battery watering is significantly reduced through fast charging. Fast Charging Technology gives you the power to run long or multiple shifts on just one battery. Optimising the running time of your fleet.

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CenturyYuasa is leading the way in Australian Traction Batteries.

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Striving for excellence

BY SARAH FALSON

ENTURY Yuasa Batteries is sponsoring two categories in this year’s Logistics & Materials Handling Mercury Awards – Technology Application and Materials Handling Solution – throwing their full support behind Australia’s logistics and materials handling industries.

The company has been a sponsor of the Mercury Awards for four years now, and believes awards programs provide important recognition for hard-working companies and individuals working in logistics and materials handling in Australia.

“Industry awards such as the Mercury Awards are important as they encourage businesses to strive for excellence, innovation and product development in our industry,” Century Yuasa Batteries General Manager – Motive Power, Manuel Leon, told Logistics & Materials Handling.

“Materials handling speeds up processes thus saving time, increases production, can reduce cost and increase worker safety.”

C

Technology development key The Technology Application category recognises companies that have creatively applied a technology to leverage competitive advantage for their own business or that of a client.

Voice directed order picking, RFID, GPS, smart conveyors and modular automated warehousing systems are just some of the technologies that have been awarded at the Mercury Awards.

“In today's evolving world technology is a vital factor for business. Having a point of differentiation is important, quite often technological aspects provide this for a company. Without continued innovation a company may fall behind its competitors,” said Leon.

“At Century, we ensure we invest where our materials handling customers want to see their technology go. For example, there has been substantial growth in the use of high frequency chargers in our industry 20 | Logistics&MaterialsHandling February 2012

Century Yuasa Batteries believes energy efficiency is an important consideration for companies developing technology, and provides a range of high-frequency battery chargers.

which are more energy efficient and gentle to the battery and we ensure this method is available to our customers.”

At the 2012 Mercury Awards, Leon is looking forward to seeing entrants show examples of creativity and innovation that differentiates their product from competitors. Since last year’s winners were announced at an annual dinner ceremony in September, Leon says he has noticed an increase in the use of intelligent systems for stock picking and movement.

“The ability to speed up the whole pick, pack and ship through the use of intelligent communication and data transfer systems is really exciting. Going forward we can see the link between this and the intelligence on board material handling systems,” he said.

“When entering you should consider what benefits your customers will see from your innovation/product development. You should be creative and strive for a point of difference while not extensively complicating things.

Ensure there is sufficient market demand for your product and consider the impact on your business, customers and the environment.”

Supporting materials handling Century Yuasa Batteries is sponsoring the materials handling category this year as it believes continued development in the sector is key to the continued success of Australia’s various industry sectors.

“It is crucial to have materials handling equipment in Australia's industry sectors. In every business there is movement of materials, work being completed on components and products being produced which must then be moved to a retail position.

Materials handling speeds up processes thus saving time, increases production, can reduce cost and increase worker safety,” said Leon.

Leon is encouraging entrants in the Materials Handling Solution category to showcase how they’ve increased production, and saved time and costs to benefit their business and customers, while also considering the environment and long-term impact on these areas.

“The move towards more and more intelligence onboard the equipment is an area of increased attention.

Providing the end user the ability to

carry out live and reliable intelligence on the use of their fleet is becoming ever so important. We at Century recognise this and are working towards adding the ability to conduct analysis of the equipment power source as part of the information available to the customer,” said Leon.

“You should ensure your materials handling solution will provide long term benefits to your customers. Given the fast pace of the industry sectors, reliability of equipment, efficiency and increased production are vital aspects when entering this category.”

In 2011, Century Yuasa Batteries increased its footprint in the sector with the launch of the Total Forklift Power Solution concept which Leon says provide customers a ‘fit for purpose’ product that maximises business efficiencies.

“The package of our highly respected battery systems along with our innovative Posicharge fast charging range has revolutionised how a Distribution Centre functions today,” he said.

“The ability to eliminate battery changing and provide Power to the forklift with high up time is showing the way forward for customers with downtime and battery handling mishaps.”

Century Yuasa Batteries 1300 362 287, www.centurybatteries.com.au

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CASI Order Fulfilment & Warehouse Automation The CASI Order Fulfilment & Warehouse Automation Systems are unique in that hardware, software, and controls are built in house. Each system is built from a long list of standard products and configured to the application. Systems are fully built and tested before shipping and installation. Our modular approach to systems allows customers the ability to start with a system that meets today's needs and add more to an existing system as their business needs change. We have expertise that allows flexibility & we have the ability to support systems both locally and remotely.

Our systems include the integration of:

• Conveyor Systems - 24volt • Sortation Systems • Cubing Systems

• • • •

Checkweighers • Labelling Manifesting Systems • Robotics Picking Systems • Automatic Box Barcode/RFID Opener (ABOT)

• Controls and Engineering • WCS Software

Order Picking Systems

See CASI at the Safety In Action & Materials Handling Expo at the Melbourne Convention Centre 17th to 19th April 2012 www.materialshandling.net.au

Automatic Box Opener (ABOT)

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Australia Wide Service LMH CASI1202

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Encouraging young talent

BY SARAH FALSON

SI Schaefer has signed-on to support the Young Professional of the Year category at the 2012 Mercury Awards, presented by Logistics & Materials Handling.

This year represents the third time the company has supported the category, which allows young materials handling and logistics industry recruits to demonstrate excellence in services, strategy, supply chain and technology.

“At SSI Schaefer, we think it is important to encourage the development of young professionals because they will bring the ongoing vitality and innovation that our industry needs to meet the growing challenges in supply chain and logistics in the future,” SSI Schaefer general manager,

S

22 | Logistics&MaterialsHandling February 2012

Brad Welsman, told LMH. “The young professional of the year award always showcases an extraordinary array of talent, dedication and professionalism which is very refreshing and bodes well for the future of our industry,” he said.

Supporting the industry’s future In 2011, the Young Professional of the Year gong was awarded to Daniel Castle from BlueScope Steel, for developing a Cost to Serve tool for the steel-maker’s sales team.

“We have seen young professionals shine in intralogistics design, supply chain optimisation, project work, IT, operations and customer relations. We are always impressed by the range and depth of talent and enthusiasm we see

in the young people within our industry,” said Welsman.

“Entering into the Young Professional category is an excellent opportunity to participate in a prestigious awards program, have your outstanding achievements formally recognised among your peers and also to meet other like-minded young people.”

On the horizon for 2012 SSI Schaefer is one of the world's largest solutions providers and components manufacturers of storage, production, logistics and order picking technology.

This year, the company is planning to grow its local Industrial Storage Solutions and Automation divisions to meet increasing customer demand.

SSI Schaefer is one of the world's largest solutions providers of storage equipment.

SSI Schaefer 1800 724 233, www.ssi-schaefer.com.au

logisticsmagazine.com.au

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Basic, better, best How to use mobile technologies to achieve best practice deliveries on the road. Tony Repaci writes.

B

EING on the road, your delivery drivers may well have been the first of your employees to carry a mobile phone. Your supply chain organisation may even have been an early adopter of mobile and wireless technology. Today though, you’d be hard-pressed to find a supply chain organisation that isn’t making some use of smart phones or handheld computers, GPS and mobile printers to support its operations.

As technology has evolved and become more accessible, it has helped supply chain organisations set new standards for productivity and customer responsiveness.

In Australia, there are those supply chain organisations who are doing just the basics when it comes to automating processes for their on-the-road workers, and there are those who are doing better at equipping their drivers with mobile technology that enables limited support while on the job. Finally, there are those transportation operators who have embraced mobile support best practice for their drivers, which affords them the advantage of ensuring delivery accuracy, efficiency and possibly further business promotion.

Delivery management process Basic: Use software to automatically generate schedules and routes for delivery drivers. Software makes the most efficient use of resources – especially applications that can factor in each driver’s location and past delivery records.

In basic operations drivers receive instructions via paper at headquarters at the start of the shift and report their progress periodically throughout the day via cell phone.

24 | Logistics&MaterialsHandling February 2012

flag miles driven outside of assigned routes or work hours.

Optimising delivery operations can encompass tasks such as delivery job management, data management and productivity management.

As technology has evolved and become more accessible, it has helped supply chain organisations set new standards for productivity and customer responsiveness.

Better: Equip drivers with mobile computers and automatically push assignments, routes and driving instructions to the devices.

This eliminates the need for paper and the need for drivers to check in at a central location. By reducing drive time, organisations can increase efficiency. Drivers use the mobile computer to record job completion and can submit this information to headquarters using a modem or wireless connection.

Best: Use a rugged mobile computer continually to update job status and driver availability to enable real-time dynamic dispatch.

This helps organisations hit delivery windows and meet order compliance.

Workforce management process Basic: Use standardised forms for time and expense reporting to promote consistency and simplify data entry. Periodically analyse completed job records to monitor productivity and costs for drivers.

Better: Free transportation drivers from the task of recording their hours, mileage and expenses on paper, and office staff the time and trouble of entering it into the system, by using electronic forms on mobile computers.

Best: Deliveries and other activities are automatically timestamped by the mobile computing application. GPS systems can apply location stamps to transactions, automatically record mileage, and

Driver and vehicle tracking Basic: Technology enables managers to monitor a delivery driver workforce that is spread over a large area. As a starting point it is helpful having mobile workers periodically call in status updates to a dispatcher or manager. A GPS unit also promotes productivity.

Better: Handheld computers can also support voice, data communication and GPS, and this gives users all the functionality they need in a single device. Combining functions also means less devices need to be purchased, kept charged and maintained. It is helpful to set the mobile application software to send status updates to the office automatically.

Best: Proactively use location data, rather than simply waiting for updates. Vehicles can be tracked in real-time to aid dispatch decision-making and to provide up-todate information for customer service. The GPS unit within a handheld computer can automatically attach a location stamp to all activities.

Product or goods delivery Basic: Manually record products delivered on paper forms.

Better: Use RFID or barcodes to support the delivery process by scanning and recording products that are being shipped from the warehouse to the customer. Share delivery data with inventory and billing applications so the products delivered can be automatically listed and billed on invoices that are generated at the customer site.

Best: Update enterprise inven-

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tory systems with real-time data from the field. Expand basic product tracking to give delivery drivers access to customer delivery information, such as which door they prefer to have goods delivered to at which times.

Product tracking & management Basic: Use barcode technology to automatically identify assets.

Better: Link product ID application to databases and customer records so that delivery drivers can validate the authenticity of the product upon delivery. Accurately identifying products assures customers of delivery competency.

Best: Fully integrate delivery operations with head office customer intelligence so that customers can track the delivery of their goods in real time.

Revenue assurance Basic: Upon completion of a job, record all time spent, and goods

printer. Obtain customer signature at the same time.

Best: Attach a digitised image of the customer’s signature to the transaction record on the computer.

Enable delivery drivers to accept payment at the time of service via a credit card reader.

Savvy supply chain professionals continue to drive down their costs, improve efficiency and achieve revenue growth by enhancing their processes and technology.

delivered while still on-site to prevent errors and omissions.

Obtain customer signature for the delivery job.

Better: Automate the data record-

ing process with mobile computers and barcode scanners. Upon delivery, immediately present customer with a work order and invoice that is generated on-site with a mobile

Conclusion The optimisation of delivery operations represents low-hanging fruit for supply chain organisations.

Companies should continually look for ways to improve their operations. Those that don’t look towards the future to see how new technologies can support their delivery processes could find that their business has quickly fallen from ‘best’ to ‘basic’ in the eyes of the customer.

[Tony Repaci is Intermec managing director for Australia and New Zealand.]

Intermec 02 9330 440, www.intermec.com.au

GET ON TOP SUBSCRIBE TO THE LOGISTICS & MATERIALS HANDLING E-NEWSLETTER TODAY.

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February 2012 Logistics&MaterialsHandling | 25

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Dynamic supply chains Reinventing the supply chain to be as adaptable as possible is the best way to fight economic – and environmental – turmoil, which have increasingly become the ‘new normal’, writes Olaf Schatteman.

F

ROM a business standpoint, the first 10 years of the 21st century have been anything but normal.

Economic turmoil is almost constant. Currency valuations shift with the wind. Bank lending vacillates between lenient and tightfisted. What many people are now saying, in fact, is that this state of volatility may actually be reinforced in 2012: a New Normal characterised by abnormal conditions.

According to a recent Accenture survey, executives are acutely aware – and quite concerned – about this apparently ceaseless state of sudden changes and rapidly shifting paradigms. Seventy percent of the 3,000-plus decisionmakers we polled expressed dissatisfaction with their company’s ability to predict future performance.

And more than 80% said they are worried about their supply chain resilience – the ability to adapt operationally to rapid changes in products, markets and currencies.

As we embark on 2012, several global and regional circumstances foreshadow ongoing uncertainty and volatility. The economic instability in Europe could have ripple effects in the United States that may reverberate from the Western world into Asia Pacific. While companies monitor the situation and undertake contingency planning, they also have heightened awareness of the concerns associated with natural disasters, as evidenced by the recent flooding in several countries across the region.

The impact of this New Normal on companies’ supply chains is potentially huge. But what sort of changes should companies consider as a result? In our view, one of the best solutions is rein-

26 | Logistics&MaterialsHandling February 2012

The ‘dynamic supply chain’ facilitates maneuverability in unpredictable markets, in order to deal with the emerging state of permanent volatility.

venting the supply chain as an adaptable, malleable ecosystem of processes, people, capital assets, technology and data.

How necessary?

Can a typical company justify the changes needed to create a dynamic supply chain? Most likely, yes, because today’s state of permanent volatility can severely impede the operations of most organisations. Still, there are many questions companies can pose to help determine their needs. For example, they can question their current level of adaptability. “How nimbly does my supply chain organisation react to changing customer demands?” or “How strong is our ability to respond smoothly to major disruptions?”

Another evaluation perspective might be strategic value. Could my supply chain be positioned less as a cost centre and more as an enabler of key competitive capabil-

ities? Lastly, companies might view the issue from a growth perspective. How prepared are we to operate in expanding global markets?

Addressing the above questions won’t produce a final decision, but it could shed more light on the game-changing shifts occurring in the global business community, as well as on supply chain solutions that help respond to those changes in a profitable and competitivelyadvantageous way.

Supply chain dynamism in 2012 No two dynamic supply chains will be precisely alike, even among industries, geographies or business units within the same company.

There is a common trait, however: speed to outcome within each functional domain. There are also at least five universal components of any dynamic supply chain for a better future.

First is an adaptive operating model. This is a living, breathing

design geared to ensuring that supply chains align with growth and innovation strategies, and embrace processes and systems that help companies rapidly scale or shutter operations based on short-notice demand signals.

Secondly, new skills in risk anticipation and mitigation. ‘Speed of response’ is a critical characteristic of dynamic supply chains, and one way to get it is with advanced risk-prediction and identification capabilities. Unfortunately, only 11% of the survey respondents actively manage supply chain risk and only 18% have formal risk management systems in place.

The third component is enhanced visibility and information acquisition. Maximising responsiveness and adaptability means you excel at gathering, analysing and applying information contributed by each link in the supply chain.

Leveraging visibility and marshaling better information can also mean integrating your supply chain systems with pricing, promotion, sales and marketing applications.

Fourth is executional excellence.

Companies focused on the development of dynamic supply chains don’t overlook the importance of investing in core business processes. And finally, supply chain sophistication and professionalism. It’s essential that the organisation as a whole understands all components of a dynamic supply chain strategy, and this means developing superior supply chain skills and ensuring that the entire company is receptive to new ways of operating.

[Olaf Schatteman Accenture Asia Pacific’s managing director.]

Accenture Asia Pacific www.accenture.com

logisticsmagazine.com.au

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Looking to the clouds A move to cloud services assists better supply chain management of fresh foods. Sarah Falson writes.

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HEY may be one of Australia’s largest wholesalers of fruit and vegetables, but The LaManna Group rates their electronic business data as anything but perishable.

Handling more than 10 million carton movements a year, involving 200 staff and offices across every state, means LaManna needs a fine degree of control over its business operations.

Spanning the supply chain from the farm to the retail outlet, the LaManna Group works with Australia’s leading fresh produce professionals to deliver the right produce, at the right time and at the right price to the end consumer.

But moving such massive volumes of fresh fruit and vegetables from farm, to wholesalers, storage and retailers and on to consumers has been severely tested over the last 12 months with floods, cyclones, fires and even earthquakes.

Six months ago, the New Zealand-owned grower, wholesaler and distributor had its data stored on its parent company’s servers across the Tasman. A decision to move much of the New Zealand company’s server capacity to Auckland in the wake of the February 2011 Christchurch earthquake was a driver for significant change in the Australian business. At the heart of it was the efficiency demands and cost of maintaining a dedicated trans-Tasman data line. A constant flow of information was imperative.

“We needed a data platform that not only suited our current needs but also set us up for the future,” said CEO Bernard Treacy.

“Our history was one of growth through a

Doing away with its trans-Tasman data line immediately saved LaManna $6,000 a year.

string of acquisitions so we needed to consolidate the way we handled data to assist our operations.”

LaManna had already shifted its e-mail to the cloud, so doing the same with its data and enterprise resource planning (ERP) system was a natural step.

“It was all about reducing risks to the business, of which losing data is an obvious one,” said IT Manager Iain Higgins.

“Our business had already been through events like the Queensland floods and Cyclone Yasi when we relied on mobile broadband and Telstra 3G to keep going, so we are alert to the needs of disaster recovery. Our core focus is managing produce, not servers, so I didn’t want to continue to be pre-occupied with the outlays and maintenance issues that go with on-premise servers.”

Doing away with its trans-Tasman data line immediately saved LaManna $6,000 a year.

Higgins said LaManna never seriously considered buying on-premise servers but it would have involved “tens of thousands of dollars”.

“Data speeds are much faster and our ERP runs much more smoothly using Cloud Services virtual hosting. Our virtual servers are continuously monitored and if there’s ever a capacity issue they are seamlessly moved to different hardware, ensuring consistent high performance.

This coupled with the disaster prevention measures that come with a large corporation like Telstra made the service very attractive,” he said.

Treacy said paying for server space used rather than investing in hardware and capacity that they may not need made sense to LaManna.

“We have a degree of peace of mind knowing that our data platform is secure and we have Telstra’s 3G as a back-up,” he said.

Telstra Business 1800 334 884, www.telstrabusiness.com

3PLs adjusting business models as climate changes TODAY’S 3PL marketplace is experiencing significant change and established 3PLs are adjusting their business models to provide greater value to shippers.

This trend was reported by Capgemini Consulting via its 16th Annual Third-Party Logistics (3PL) Study, based on over 2,250 responses from shippers and logistics service providers in North America, Europe, Australia, Asia-Pacific and Latin America.

According to the report, the majority of shippers worldwide are increasing their use of 3PL services, with 64% of respondents reporting a rise. Further, an average of 42% of total logistics expenditures are 28 | Logistics&MaterialsHandling February 2012

being spent on outsourcing – which is around the percentage reported in 2010.

According to the research, 24% of shipper respondents reported some return to insourcing 3PL services and 58% report they are reducing or consolidating the number of 3PLs they use, indicating uncertainty about the global economy continues to impact 3PLs. “The responses from this year’s study represent an interesting record of the shifting use of 3PL services,” said Capgemini Consulting vice president and North American supply chain leader, Dan Albright.

“Whilst some companies are increasing outsourcing services, we are still seeing the consistent churn that occurs each year with 3PL respondents observing that some of their customers are returning logistic activities back in-house. It’s vital that 3PLs and shippers work in close collaboration and that 3PLs remain innovative by offering value added services to provide value to shippers to help reverse this trend.”

The 2012 3PL Study also provides an analysis of logistics operations in emerging markets and the electronics industry.

Capgemini Consulting www.capgemini.com

logisticsmagazine.com.au

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175,000 lines to 26 stores Fast, reliable distribution More sales to happy customers

AM

AEDT

Andy Hinton Warehouse and Distribution Manager Covs Parts

DEM898

Another logistics result.

Andy Hinton has no time to spare. Competition in the auto parts business is tough and customers are demanding.

He knows that reliable, efficient logistics drives the success of Covs Parts. He also knows that results can only be delivered by the right partner. That’s why he teamed up with Dematic, an industry leader with a track record second to none. Dematic delivered one of the most sophisticated parts DCs in the country, fully integrated with zone routing, crossing docking, and voice-directed computing. Today, Covs Parts distributes more than 175,000 order lines a month with deliveries up to six times a day, to its network of 26 stores in WA. Sales are up, so is customer satisfaction. That’s what we call a logistics result.

Ask us.

02 9486 5555 www.dematic.com.au

Logistics Solutions | Service & Support | Software & IT | Voice Picking | Wireless Networks | Storage Solutions | Conveyors | AS/RS

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The IT thing Richard Owens explains how supply chain champions have leveraged the power of information in the supply chain to create value through business and IT alignment – and how you can do it, too.

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RECENT survey by CIO Asia magazine – ‘State of the Asian CXO 2010’ – revealed that hard-pressed C-Level executives in seven Asia-Pacific countries were gearing up for battle after two years of lean budgeting. According to the survey, 72% of CXOs said the increasing complexity of the business environment was a top concern.

The survey also showed 53% of CXOs have difficultly achieving information technology integration.

One need only look at supply chains as an indication of the ever-increasing complexity of modern business and the pace at which it moves. So what’s fuelled the current transformation of supply chains? In a nutshell, it’s the need to seek better business intelligence and inventory control to increase competitive advantage and control costs.

The internet revolution has also allowed for information to be transmitted more quickly and people are now accustomed to having information at their fingertips anywhere and anytime –including their or their organisation’s supply chain. So how do executives determine the right information for the right tasks? How do you manage the dynamic balance between IT and business objectives?

Organisations that stand out today are the ones which have achieved IT integration, have used the complexity of modern business environments to their advantage and turned their supply chain into a value-add. The annual AMR Top 25 Supply Chain Ranking by Gartner Research, aimed at raising awareness of the supply chain discipline and how it impacts business, is continuously dominated by companies that exhibit the ability to balance operational and innovation excellence.

Amongst the top five ranked companies for 2010, Apple is now a supply chain champion.

The company has transformed its supply chain into a value chain by taking an ‘outward-in’ approach. Apple focuses on what the consumer wants, along with their needs and what they are willing to pay, developing and building its IT with this strategy at the core. Apple dominates

30 | Logistics&MaterialsHandling February 2012

Five Top Tips: 1. Apply demand-driven principles to coordinate and integrate the functional areas of supply, demand and product management in order to better respond to changes in market demand.

2. Take a cue from the leaders when designing your own supply chain strategy. Think ‘outside-in’, starting with your customers and working back through your trading partner network to design a profitable response. Define how many supply chain types you have and design a customised response for each.

3. Balance operational and innovation excellence for superior overall performance.

4. Focus on acquiring, mentoring, growing and retaining supply chain talent.

5. Use the right supply chain and product metrics to consciously manage performance, and foster a culture that embraces measurement for continuous improvement.

Organisations that stand out today are the ones which have achieved IT integration to deliver value-add.

One need only look at supply chains as an indication of the everincreasing complexity of modern business and the pace at which it moves.

the AMR awards because it consistently brings operational and innovation excellence to some of the most competitive markets in the world. What Apple amongst other winners share is that they’ve successfully managed to marry IT and

business alignment. In order to be successful, companies need strong IT platforms that enable them to really integrate information into business planning. If you do not know what your customers want, stop and ask questions.

The role of IT should be to support rapid coordination between designer and the suppliers, provide a good view of the availability of components and manufacturing capabilities and set up responsive feedback mechanisms from retailers and end customers.

Remember: one size does not fit all. The success of technology in one company or product does not mean that it will achieve the same result with other organisations. Be sure to develop your supply chains so that it caters to your own, diverse product range.

IT requirements change depending on the product or service – IT can be optimised to enable accuracy in order-taking, and to ensure that communication between the sales and manufacturing departments is fast and reliable.

[Richard Owens is DHL Global Customer Solutions Asia Pacific CEO.] DHL 1300 725 468, www.dhl.com.au

logisticsmagazine.com.au

2012 NOMINATIONS NOW OPEN The Mercury Awards recognises individuals and companies that have contributed to the success of Australia’s industry.

Why nominate?

• Exposure and publicity • Recognition for your hard-working team members • Valuable networking opportunities with key industry leaders For an entry kit visit: www.logisticsmagazine.com.au/awards For further information please email: editor@logisticsmagazine.com.au

LO1853_MM_ƒ.indd 1

Nomination deadline: Monday 9 July 2012 The categories are: • Logistics Leader

• Technology Application

• Top Third Party Logistics Provider (3PL) • Supply Chain Innovation • Young Professional of the Year

• Best Green Initiative

• Warehouse and/or Storage Solution • Materials Handling Solution

16/01/12 10:27 AM

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At MECA your storage problems will be solved with the highest level of industry expertise and innovation with a proven record of cost-effective installations. European engineered and designed,

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AD_LMHJACJUN_10.pdf