Logistics & Materials Handling July 2013

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Industry News 2013 Mercury Awards Transport and Logistics Materials Handling Warehouse Management

First class, business class or economy?

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Forklifts to suit all budgets.

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This issue July 2013

Safety BHP accused of rolling over on vehicle safety

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Industry News 2013 Mercury Awards Transport and Logistics Materials Handling Warehouse Management

First class, business class or economy?

04 Bulletin Board Port of Melbourne set to expand capacity & competition New tug boats part of Rio Tinto expansion 06 Awards Nominations open for 2013 Mercury Awards A snapshot of past winners

Sponsor spotlight Scholarship on offer for Young Professional of the Year 17 Factory Companies use teamwork to streamline new factory 19 Materials New steel pallet racking standards

Post Print Approved PP352583/00436

Forklifts to suit all budgets.

contents

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20 Transport & Logistics Transporting Australia’s most valuable assets 22 Forklifts Covering all the materials handling bases 24 Bulk More than just machines 26 Warehouse Designing warehouses for efficiency

17/05/13 8:24 AM

ToYoTA MATeRiAl HANDliNg has now made choosing a forklift even easier because whatever your needs or budget, they have the right forklift for you. Step up to their “First Class” range of new forklifts that lead the way in safety, reliability and productivity. if you’re after something more cost effective, choose from Toyota’s quality range of “Business Class” premium used forklifts. For tighter budgets go “economy Class” and choose from Toyota’s massive range of budget used forklifts.

packaging Robot revitalises pharmaceutical packaging line in Melbourne

25

Call Toyota Material Handling on 1800 425 438 or visit www.toyotamaterialhandling.com.au ASSOCIATE PUBLISHER: Martin Sinclair e martin.sinclair@cirrusmedia.com.au EdITORIAL CO-ORdInATOR: Vicky Validakis t 02 8484 0964 e vicky.validakis@cirrusmedia.com.au GRAPHIC dESIGnER: Louis Santos t 02 8484 0724 e louis.santos@cirrusmedia.com.au KEY ACCOUnT MAnAGER: Tim Richards t 02 8484 0829 e tim.richards@cirrusmedia.com.au QLd AdVERTISInG MAnAGER: Sharon Amos t 07 3261 8857 m 0417 072 625 f 07 3261 8347 e sharon.amos@cirrusmedia.com.au PO Box 3136, Bracken Ridge, Qld 4017 PROdUCTIOn CO-ORdInATOR: Mary Copland t 02 8484 0737 e mary.copland@cirrusmedia.com.au 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 Cirrus Media. Published by Cirrus Media. (ABN 80 132 719 861) Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Australia Locked Bag 4700 t 02 8484 0888 f 02 8484 0633. Printed five times a year, Logistics & Materials Handling is inserted in the February, April, July, September and November 2013 issues of Manufacturers’ Monthly, FEN, Australian Mining, Electronics News, Food, and PACE magazines with a distribution of 30,000.

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July 2013 Logistics&MaterialsHandling | 3

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bulletinboard logistics and materials handling news from aUstralia and aroUnd the world

Port of Melbourne set to expand capacity and competition the Port of melbourne corpora-

“i’m pleased to see the shortlist

tion have announced a list of

of bidders has revealed a strong

bidders vying to build and operate

field of experienced and worldclass

melbourne’s third international

industry players that will enhance

container terminal.

and build on competition in the

the shortlist includes bids from experienced companies like

sector and fuel further jobs growth for the state.

specialised asset management

“it was only a year ago when

limited, hutchison Port holdings

the coalition government

and Qube holdings limited.

announced the Port capacity

minister for Ports david hodgett

Project and already we have leapt

welcomed news of the shortlisted

forward to a stage where we are

companies.

well on track to having an operat-

“the $1.6 billion Port capacity

ing terminal by 2016, providing

Project is a critical infrastructure

the certainty in container capacity

project that will drive competi-

this state needs for at least the

tion and fundamentally enhance

next decade.”

Victoria’s future economic growth,” hodgett said.

the announcement of the shortlist for the international container

terminal follows the announcement of the short-list of bidders to operate the new automotive terminal

and pre-delivery inspection hub. the shortlisted bidders will be required to lodge their proposals

in september this year and it is expected that the successful bidder will be announced in early 2014.

New tug boats part of Rio Tinto capacity expansion rio tinto have invested $90 million

day across cape lambert, Parker

also provide safe passage across

in an upgrade its tug and line boat

Point and east intercourse island

this same rail network.

fleet as part of a planned 290 mil-

terminals - around 1500 ship

lion tonnes capacity increase at its

movements a year.to house the

sive structure that was named by

Pilbara operations.

new tugs, rio tinto has also built

the ngarluma elders and means

new tug pens with the capacity to

“mangrove”, and we are very

berth four vessels.

proud to feature artwork panels on

rio tinto Pilbara supply chain chief operating office clayton

“Yigara Bridge is an impres-

walker said the tugs would add to

senior rio executives took

the capability of rio’s existing fleet.

delivery of the first tugboat to

painted by roebourne art group

arrive in the Pilbara last month,

artists,” Joyce said.

“these new tugs are bigger,

the bridge that were designed and

stronger, faster and more stable

and officially opened the Yigara

the bridge on average is 10

in the water compared to their

Bridge situated between cape

metres high from the top of rail

predecessors, and this delivery

lambert operations and the town

formation to top of road surface

heralds a milestone in the history of

of wickham.rio tinto’s managing

and the pre-cast reinforced

rio tinto’s port operations as the

director expansion Projects david

concrete beams and concrete

biggest tug build the company has

Joyce said the bridge was built to

abutment panel walls were manu-

undertaken,” walker said.

ensure the safe passage of road

factured in Perth and transported

users as they cross the eight line

by road to site.the expansion to

million, and built in turkey. they

railway network coming in and out

cape lambert port is part of the

travelled 29,000kms by sea, taking

of cape lambert. rio tinto an-

robe river iron associates joint

70 days to reach australia.

nounced last week the construc-

venture consisting of rio tinto,

tion of another bridge on the north

mitsui, and nippon steel sumi-

west coastal highway which will

tomo metal industries.

each tug is worth around $15

on average rio tinto tugs assist four or five ship loadings a

4 | Logistics&MaterialsHandling July 2013

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2013

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mercuryawards

Nominations open for the

2013

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2013 Mercury Awards!

The Logistics & Materials Handling Mercury Awards are back for their eighth year of recognising and rewarding the best achievements in logistics and materials handling implementation and technology over the past 12 months.

The winners were: Winner of Logistics Leader: Linfox Logistics

The industry’s night of nights

T

he Logistics & Materials developed in 2006 by Logistics

& Materials Handling Magazine to recognise and reward excellence in supply chain, logistics, and transport management solutions and operations.

The event was opened by Martin Sinclair, Associate Publisher of Logistics & Materials Handling.

Guest speaker Michael Kilgariff from Australian Logistics Council took the stage before handing the microphone over to comedian and masters of ceremonies Vince Sorrenti.

All finalists join a prestigious group of leading professionals working to win in an evercompetitive global market.

Finalists will receive two free tickets to attend the gala dinner ceremony in September, and will also have a summary their entry published in the official Finalists Issue in September 2013.

Nominate your company now to be part of the 8th annual Logistics & Materials Handling Mercury Awards and be recognised for your success!

Visit logisticsmagazine.com.au and fill out your nomination form today!

6 | Logistics&MaterialsHandling July 2013

Winner of the Young Professional of the Year, proudly sponsored by SSI Schaefer: Rhiannon Buckland from Bluescope Steel Winner of the Warehousing and/or Storage Solution, proudly sponsored by Schaefer Store: Pacific Brands for its New National Distribution Centre in Melbourne

Handling Mercury Awards were

Last year, the awards attracted a record number of finalists from all around Australia, with companies keen to be recognised for their achievements. Over one hundred guests turned out for the 7th Mercury Awards held at Doltone House, Darling Island Wharf in Sydney.

Winner of the Top Third Party Logistics Provider (3PL), proudly sponsored by CASI: eStore Logistics

Winner of the Technology Application, proudly sponsored by Century Yuasa: Trimble Navigation for the Trimble GeoManager for The WesTrac Newcastle project Winner of the Supply Chain Innovation, proudly sponsored

by SmartTrans: CHEP for its High Temperature Reusable Heat Pad Winner of the Best Green Initiative: CST Wastewater Solutions for the New Bluetongue Brewery in NSW Winner of the Materials Handling Solution, proudly sponsored by Century Yuasa: Konecranes for its Lifting Solution for the Austal Ship Construction Project Winner of the Best of the Best, proudly sponsored by Logistics & Materials Handling: Pacific Brands for its New National Distribution Centre in Melbourne

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Mercury Awards 2012 –

Logistics & Materials Handling night of nights A snapshot of past winners

ung received the 2012 Yo Rhiannon Buckland r award yea the of nal sio Profes

Young Professional of the Year Rhiannon Buckland from BlueScope Steel won last year’s Young Professional of the Year award, sponsored by SSI Schaefer.

Rhiannon started her career as a logistics operations graduate in BSL NSW Logistics Operations area. She showed that she had the clear ability to re-think and drive change in her graduate role as technical officer and saw that the role could be improved by increasing the number of tasks the role could manage effectively without increasing personnel.

BlueScope said “she implemented changes, one of which was to build easy access to logistics operations information and streamline reporting. The new processes and efficiencies she put in place assisted not only her but also succeeding incumbents.”

On the night of the Mercury Awards, Rhiannon said she was impressed by the opposition but didn’t expect to win and was proud of being able to work in an industry dominated by men and achieve significant outcomes.“I have had a lot of different achievements and different people might have thought some were bigger than others,” she said.

“For me personally I acted as a warehouse manager in charge of a lot of operators and telling a lot of truck drivers what to do and 8 | Logistics&MaterialsHandling July 2013

Winner Leigh William s Party Logistics Provid accepts the Top Third er award

I suppose I was a lot younger than them and they weren’t used to girls in the warehouse so that was a big achievement for me gaining their respect and for them to listen to me.”

Materials Handling Solution Konecranes partnered with Austal with winning results at the 2012 Mercury Awards as they took out the Best Materials Handling Solution category, sponsored by Century Yuasa.Konecranes and Austal worked together to provide a lifting solution for a project constructing large ship sections for the defence arena.

Austal typically uses 16 overhead hoists working simultaneously to lift and move each assembled ship section before positioning it into the main structure. Each hoist needed its own operator which meant that 16 employees were engaged in this work at any one time.

Austal approached Konecranes seeking an improved working method that would require fewer employees and provide an all round better solution to ensure the best possible outcome for the company. Austal had formerly used the cranes of another supplier but decided that Konecranes could offer an innovative solution.Phil Growden, site services manager at Austal described the process of engaging

with Konecranes to make the company more efficient in materials handling. “We needed up to 16 people each with a control button to lift an assembled section of ship,” recalled Growden.

“They came up with a solution of multiple remote controls, whereby a single operator can typically control 16 designated hoists and up to 20 at a time. We’re pleased with their solution, which works well in practice. “Konecranes were the only crane supplier who could give us the multiple crane controls we needed,” said Growden.

Warehousing and/or Storage Solutions Pacific Brands had a double win at the Mercury Awards last year, taking out the award for Best of the Best as well as Best Warehousing and/ or Storage Solution for the newly built distribution centre (DC) in Melbourne’s outer suburbs.

The judges were impressed with the DC and commended Pacific Brands for the changes they had made.“It is a well integrated solution to a complex challenge and was a significant task with a great outcome under a business transformation.”

When interviewed on the event night John McDermott, manager at the new DC, said that he was extremely pleased with the outcome.“It feels tremendous to win on behalf of the team logisticsmagazine.com.au

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2013

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2013

mercuryawards

ers, Peter Gaddes g congratulates Tony Lav Former editor Annie Dan . company’s win and Dzintra Horder on the

we’ve got back in Truganina, it’s been a tremendous effort from a lot of our partners and I suppose this is a reward for those efforts put in and also our partners at Dematic.” The scale of the project L Mto0 build 7 1 3a_42,000 0 0 0 square _ S A Imetre was DC that would consolidate several

10 | Logistics&MaterialsHandling July 2013

tics at Pacific Brands, David Miller expands on. “Since we started working on the project, like many other suppliers to the retail industry, Pacific Brands has experienced a shift in customer buying habits,” he said.“The rapid growth of online shopping, in particular, means we now have to pick and pack an increasing number of orders for single line items.To cost-effectively process such orders requires a flexible approach to order fulfilment, and this was one of the main reasons we implemented voice picking as our key order picking technology.”

Best Green Initiative

leading brands under one roof and the site decided on was in Truganina in Melbourne’s western CST Wastewater Solutions took out suburbs.When Pacific Brands and last year’s Mercury Award in the Dematic started working on the Best Green Initiative category for its integrated logistics solution for implementation of a water recovery 1 the2DC, 0 1flexibility 3 - 0 6 - was 1 1 aTkey 1 1driver : 4 0 : 4plant 0 + at 1 0the : new 0 0 SAB Miller owned as the general manager for logisBluetongue Brewery in New South Wales. The new water recovery plant was designed by CST to meet world best practice in water reuse standards in the food and beverage industry and has achieved all of the environmental targets set

by SAB. The waste water treatment and green energy plant at the $120 million brewery also provides valuable renewable energy thereby reducing its dependence on fossil fuels and cutting overall energy needs by 15 per cent. The brewery’s water recovery is subjected to GWE’s state-of-the-art anaerobic treatment. This process significantly reduces the brewery’s carbon footprint by indirectly avoiding the release of carbon dioxide into the atmosphere through savings in electrical running costs and by biogas reuse.The anaerobic pre-treatment is followed by treatment processes involving an aerobic membrane bio reactor and reverse osmosis.It produces treated effluent that will be safely reused as process and cleaning water within the brewery, reducing by 50 per cent the need for fresh water, thereby greatly

contributing to reducing the amount of water typically used to produce a litre of beer. On average the removal efficiency of GWE’s anaerobic wastewater treatment installations is as high as 90-95 per cent which brings the organic load down to regulatory discharge standards for most types of wastewater. The judges were thoroughly impressed with the innovation demonstrated and the prioritisation of minimising fresh water use and reducing energy use.

Best of the Best Pacific Brands took out the 7th Annual Mercury Best of the Best award. The Best of the Best Award was chosen from amongst the winners in the other categories.

Pacific Brands also won the Best Warehousing and/or Storage Solution for the newly built distribution centre (DC) in Melbourne’s outer suburbs.

The distribution centre impressed the judges and they congratulated Pacific Brands for the changes.John McDermott, manager at the DC said he was extremely pleased with the outcome.Flexibility between pacific Brands and Dematic acted as the key driver for working on the integrated logistics solution for the DC. Some of the challenges involved in installing one of the largest raised storage areas in Australia, over 5,400 square metres, was to utilise otherwise wasted airspace and to make space-efficient narrow aisle storage systems.Order fulfilment, productivity and accuracy were improved by voice picking, smart zone-skipping conveyors and integrated warehouse control, and order fulfilment software.

Dematic’s DC design included a Dynamic Slot Area where up to 150 pallets of goods could be placed on labelled locations on the DC’s floor.“Automation has its place, but it also has very distinct limitations.

For our style of dynamic operation, we believe the smartest logistics logisticsmagazine.com.au

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mercuryawards

solution is one that can be scaled up or down to suit the required workload.”“Though it was tough, the team got through it in the end.”

Supply Chain Innovation CHEP took out last year’s award for Supply Chain Innovation, sponsored by SMART TRANS, for its project of manufactured new and reusable heat pads for customers Alba.The brief for the project nominated for a Mercury Award was to design,develop, test and manufacture a pool of new high temperature reusable heat pads that would allow Alba to reheat solidified tallow (animal fat) ready for decanting.The time frame was very tight with 12 weeks given for CHEP to manufacture a sufficient volume to meet the customer demand.On the night of the Mercury Awards Senior business relationship manager, Peter Gaddes was asked about what was the biggest challenge of the project. “Probably the time frame of 12 weeks and bringing a team together that was stretched not only from one seaboard to another but also internationally as well. “Communication was probably the main achievement that we were able to make from that point of view.” The project managed to help improve efficiency and productivity by reducing heating time from 48 hours down to 24-36, meaning a significant decrease especially when measured over a long term period.Ashley Palmer says the partnership with CHEP was built on a need to work with a supplier who could meet their growing demand for equipment and services.“We’ve added a million litres a month to our capacity and we intend to grow this. CHEP has the capacity to grow with us and has demonstrated this in WA by being there for us at peak periods to keep up with production.”

logisticsmagazine.com.au

Logistics Leader Linfox took out the 2012 Logistics Leader Award for the multitude of sustainable changes which it has made to the company, proving it to be at the forefront in an area which is continually growing in significance.Linfox made a decision to accept the science behind global warming and make the necessary changes to lessen the company’s impact on the environment.The company knew that environmental responsibility would lead to improved business.“We regard reducing the use of energy and thereby emissions, is good for the environment and good for business.Linfox was the first company in Australia to use carbon footprint software to examine the supply chain to find ways to reduce carbon emissions and as a result it is reducing energy use by three per cent by changing transport routes, sources of freight and modes of transport within the supply chains.” Linfox also launched EcoDrive which is a driver training program that teaches ten key techniques including driving smoothly, reducing idling time, planning ahead, using the appropriate gear and avoiding heavy braking. These techniques can make a big difference to fuel consumption and can reduce carbon emissions.The program is available to all Linfox employees and can be delivered in cab by a specialist trainer or alternatively online at Linfox College.

Technology Application Trimble Navigation took out the 2012 Technology Application award sponsored by Century Yuasa, for developing a GeoManger Unit which helped achieve drastic improvements for WesTrac.The winning Trimble project was the centralisation of job dispatch and management systems for WesTrac.Trimble began with a pilot program in Thornton NSW, which involved 14 vehicles

Roger Persson of Konecranes receives the Materials Handling Solutions award.

installed with a GeoManager unit.

The key objectives were carefully monitored over the eight week period in Thornton which was fleet management, driver safety and work management.Michael Chan,business development manager at Trimble said the implementation of the WesTrac project was not without difficulties.

“There were challenges obviously, the challenges with technology are around people’s adoption of technology and people’s ability to change and adapt to new systems and solutions that are being put into place.”

Trimble GeoManager helped improve objectives, with results from the pilot now being used to justify the rollout of a wider field service management solution across the NSW WesTrac field service fleet consisting of over 150 vehicles.

Top Third Party Logistics Provider (3PL) eStore Logistics took out the award for Top Third Party Logistics Provider at last year’s Mercury Awards proudly

sponsored by CASI ANZ. eStore developed a highly configurable warehouse management system (WMS) and set of order processes that provide a customised solution for each client.The WMS was established to reduce the high processing cost usually associated with small consumer online orders.After his own difficult experiences buying and selling products online, eStore founder and CEO Leigh Williams, wanted to create Australia’s most efficient and streamlined logistics company for both online retailers and traditional retailers.He said that other logistics providers were not adapting rapidly to address changing consumer demand and he saw a market problem which he could help solve.The WMS ensures that regardless of the client’s business requirements, they are able to rapidly implement a solution that ensures the most efficient service is provided through strong relationships with international and domestic carriers.“I think the cost savings we’ve put back to customers especially at the freight front with our freight optimising software, as well as at the back end processing warehousing level are our best initiatives,” Williams said.

July 2013 Logistics&MaterialsHandling | 11

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LM0713_000_DEX_L 1 2013-06-11T11:31:05+10:00

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It has been tested to conform to all current standards including the Australian Standard AS4084:2012.

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2013

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mercuryawards

8th Annual

Logistics & Materials Handling Mercury Awards In this issue we have a brief word from some of our sponsors about their companies and why they chose to sponsor the Mercury Awards.

Ticking all the right boxes for 3PL success

Bringing new innovations to warehousing/storage

CASI offers a full line of cutting-edge materials handling technologies.

Third-time sponsor CASI (Cornerstone Automation Systems Inc.) this year is sponsoring the Top Third Party Logistics Provider category in the upcoming 8th annual Logistics & Materials Handling Mercury Awards.

The company manufactures and integrates a full line of cutting-edge materials handling technologies, including conveyor systems, check weighers, sortation equipment, automation systems, distribution solutions, order fulfilment, labelling, robotics, software and PC/PLC materials handling controls.

CASI’s range of order fulfilment and warehouse automation fits and ticks all the boxes that 3PL’s are looking for, such as increased productivity, efficiency, cost savings and improvements in safety by less manual handling.

With a range of materials handling and logistics products and services on offer, the company is in a strong and suitable position to return as a sponsor in this year’s Mercury Awards.

CASI has signed on again this year saying that the Mercury Awards not only focuses on the successes of like organisations; it is a platform to spread the word on new technologies and processes for all players.

The company hopes to see a distinct display of the ROI, productivity and cost benefit of the process the finalists in this category have adopted.

The company has seen a number of gamechanging innovations in the 3PL industry this year, including a strong focus on the adoption of relevant automated picking systems like pick to light, pick to voice, RFID, auto manifesting and improving safety in forklift traffic areas.

CASI ANZ P/L 1300 792 217 www.cornerstoneautosys.com.au

“DO IT and gather the accolades of your peers. If you don’t set goals and attempt to achieve them, the organisation you are involved with is not standing still; it is going backwards.” That’s the message Schaefer Store has for companies thinking of entering the Warehousing/Storage Solutions category in the upcoming 8th annual Logistics & Materials Handling Mercury Awards. The company, which is a second-time sponsor of this category at the Awards, is a national distributor of a range of pallet racking, cantilever racking, long span shelving, modular multi-tier shelving products for storage, logistics, materials handling, conveying and warehouse systems, specifically designed to improve warehouse productivity and optimise the available storage areas. Schaefer Store says it has signed on in 2013 because the Awards assist the company to bring its new innovations to the attention of warehouse

14 | Logistics&MaterialsHandling July 2013

personnel, assisting them in their ongoing deliberations of improvement.

“They highlight and feature various enterprising and individual endeavours attempted by various enterprises to improve their processes, safety and general well being and productivity of their workplaces,” the company says. The company will be keeping storage system users informed of their responsibilities under the new standard and advising what they should be expecting from their rack supplier to ensure they meet the new requirements, not exposing themselves to litigation and potential penalties.

Schaefer Store 1300 85 66 89, www.schaeferstore.com.au

Mobicon Systems Mobicon Systems Pty Ltd is privately owned and was established in Australia in 1994, when the Owner and Managing Director Tom Schults realised that there was a need for a more effective and economical way to handle containers in a low throughput environment.

He set out to design a container handler that could simply take a container off a truck and place it anywhere it’s needed.

CE Approved, Mobicon uses only top quality components, such as Bosch Rexroth Hydraulics and Hatz Engines Since the late 90s Mobicon Systems has moved from strength to strength providing solutions to the logistics industry all over Australia with the first international model sold into New Zealand in 2000, followed by South Africa in 2006. Now Mobicon Systems have machines in the UK, Japan, PNG,

Angola, Mozambique and the USA. Notably since delivering the first in 2008, Mobicon Systems has an ongoing contract supplying the US Navy with Mobicons designed specifically to fit their Littoral Combat Ships (LCS).

Although Mobicon’s manufacturing and assembly plant is based in Brisbane, Australia, Mobicon Systems successfully supplies equipment to clients across the globe.

Mobicon and its staff are proud to support the Technology Application of the year award at the 8th annual Logistics & Materials Handling Mercury Awards.

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2013

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mercuryawards MATERIALS HANDLING P/L

SSI Schaefer

SSI Schaefer has signed-on to support the Young Professional of the Year category at the 2013 Mercury Awards, presented by Logistics & Materials Handling Magazine.

This year represents the fourth time the company has supported the category, which allows young logistics industry recruits to demonstrate excellence in the provision of services, development of strategy or supply chain management including consulting services.

“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, Brad Welsman, told Logistics & Materials Handling.

According to Welsman, the company is an advocate of industry awards Aprograms D _ L M Hlike B Athe CS E P _ 1Awards, 2 . pdf Mercury

logisticsmagazine.com.au

which it believes encourages innovation in the industry.

“It is important to reward outstanding achievements and leadership within our field of work to actively encourage innovation and high standards in new projects but also to foster good relations between all the players in our industry,” he said.

This year, Welsman is hoping to see entries in the Young Professional of the Year category demonstrate the same high standard that nominees have shown since over the past four years.

“The young professional of the year award always showcases an extraordinary array of talent, dedication and professionalism among a large number of young candidates which is very refreshing and bodes well for the future of our industry. I am sure we will see the same in 2013,” he said.

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MATERIALS HANDLING Pty Ltd was established in 1981 and is a privately owned, Australian, national distributor of an extensive range of & materials handling equipment including turnkey systems. These products include lifting equipment, conveyors, order fulfilment, sortation, check weighing, racking, shelving, storage, access equipment, height safety, barriers, packaging, crowd & traffic control equipment, safety and waste management products.

They assist a vast range of organisations including the selfemployed, project managers, public, private and “Blue Chip” companies. Our objective is to improve their productivity, efficiency, safety, profitability and facilitate a more contented workforce. This is achieved by providing equipment and systems for workplace health and safety, accident prevention and environmental protection. Most of their needs are satisfied by applying cost effective technology, products, know how, experience, quality systems and service to address their particular problem.

They service clients in Australia, New Zealand, Papua New Guinea and the Pacific Islands and have them “Working with ease....”

Materials Handling Pty Ltd is proud to support this year’s Technology Application award.

MATERIALS HANDLING P/L 1300 65 00 35 www.materialshandling.com.au

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AM

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2013

mercuryawards

2013

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Scholarship on offer for Young Professional of the Year

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he winner of this year’s young professional of the year award will receive a scholarship to Sydney’s Supply Chain School.

Supply Chain School, a division of the Logistics Bureau Group kicked off earlier this year and is aimed at people looking for a more practical way to learn about the supply chain management industry.

The school itself consists of three two-day schools a year and is supplemented by weekly e-classes as well as videos and webinars that continue for 12 months.

Group managing director of Logistics Bureau Group Rob O’Byrne said the school focused on subjects that could make a difference to how businesses manage their supply chains, with an 80/20 approach to knowledge building.

L “We’re M 0 7 1focusing 3 _ 0 0 on 0 _the M more O B . advanced pdf Pa ge

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subjects that can really make a difference to businesses and people’s performance,” he explained.

“The ideal target is probably someone in the early part of their career, someone who doesn’t have a great deal of supply chain O’Byrne said the school was attracting experience, or indeed maybe people who aren’t students who are “bright, well-educated…. working directly in a supply chain role. ambitious and at the early start of their “It’s one thing to understand the theory, but careers.” then it’s ‘how do I actually apply that theory?’

“It’s about industry leaders and practitioners How do I get traction in my business to make sharing their knowledge and secrets. Not improvements?” just me and some of my Logistics Bureau Different from other training courses, the specialists, but well known industry leaders school will not try to cover everything from who are making big changes in their businesses A-Z in supply chain management, but rather right now. External speakers are not invited focus on the critical elements that can make a because of who they are or the title they have, different to an individuals career and business. but because of their valuable knowledge and With a relaxed learning environment that their passion to share that knowledge with the 1encourages 1 5 / 0 5 / sharing 1 3 , 3 :ideas 1 0 and : 0 knowledge, 7 P M A E future ST the of leaders of our industry.”

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factorymaterialshandling

Companies use teamwork to streamline new factory in Sydney A major relocation led a leading saftey supplier to source innovative ways to streamline the process.

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rady, a leading supplier of workplace safety identification solutions that improve safety, security and performance for tens of thousands of customers throughout Australia, has recently relocated to a new national distribution centre (DC) at Greystanes in Sydney’s western suburbs. two LPreviously M 0 7 1 3 operating _ 0 0 0 _from AEC outdated warehouses in Regents

Park, Brady worked pretty much newly completed 13,000sqm DC around the clock during the from December 20, 2012 to January Christmas and New Year holiday 2, 2013.

Manager, 1 period, 2 0 1 relocating 3 - 0 6 - more 1 1 Tthan 1 1 14,000 : 1 7 : 5 9 Brady’s + 1 0 : Operations 0 0 stock keeping units (SKUs) to its Simon Harris, said the relocation

involved a team of 120 personnel and required the transport of more than 20,000 pallets between the two sites.

“For the best part of two weeks we had three trucks carrying stock from Regents Park arriving at the new DC every hour over two shifts,” Harris said.

“And, of course, once the stock arrived, it had to be put-away to its correct location.”

Key partners in the relocation were Dematic Real Time Logistics and SAP specialist Icon Integration.

Dematic was responsible for setting up the new DC’s wireless infrastructure and commissioning its RF terminals and voice-directed picking system, while Icon’s role

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included integrating the paperless picking technologies to Brady’s warehouse management system SAP WM. Australia’s first direct interface of voice picking to SAP WM An innovative feature of the integrated systems solution for the new DC was the first application in Australia of Voice Direct ERP for SAP (VDERP) from Vocollect, the manufacturer of the DC’s voice picking system.

“We have been using voice picking technology for over seven years, however, it has required the use of middleware to enable SAP WM to communicate with the Vocollect system,” Harris explained.

“While there was nothing wrong with this set-up from a functional perspective, the middleware had not been upgraded for several years and was beginning to impact the reliability of our integrated IT systems.

“When it came time to relocate to our new DC we faced the dilemma of significantly upgrading the middleware, or finding an alternative way of making our voice picking system communicate directly with SAP WM,” Harris said.

“Dematic’s Real Time Logistics division and our SAP partner Icon researched the options available and recommended Vocollect’s recently developed VDERP interface, which facilitates the direct integration of voice picking to SAP WM. “While only a small number of SAP WM users around the world had implemented VDERP to create a direct interface to their Vocollect voice picking system, with Dematic’s and Icon’s reassurances, we felt confident to proceed, “ Harris explained.

“The seamless integration of our SAP WM and voice picking systems has greatly streamlined and simplified a critical interface, and has significantly improved the robustness and reliability of our paperless picking operations.”

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Partners deliver integrated IT systems solution Working closely, Dematic and Icon configured VDERP to optimise operational layouts, systems and order fulfilment processes at the new distribution centre.

Icon’s Director of SAP Logistics Solutions and Project Manager for the Brady implementation, Jason Nalewabau, said: “As soon as the layout of the was confirmed and all of the storage systems installed, we began mapping all of the new locations and started work immediately on configuring SAP WM, defining the voice work flows, and deploying the VDERP solution.”

“Together, Icon and Dematic have the techniques, SAP add-ons and pre-built work flows, foundational technology and experience to optimise a customer’s investment in SAP, and increase their accuracy, productivity, order processing capacity and IT systems performance,” added Nalewabau.

Dematic Real Time Logistics Project Engineer, Seth van Dijk, said: “In addition to helping Brady find the optimum systems integration solution for voice picking, we also designed and implemented the new DC’s wireless network, which includes a CISCO backbone providing sub-second response for the facility’s RF and voice terminals.”

Dematic also assisted during the physical relocation by providing Brady with a range of loan equipment including additional RF and voice picking terminals so that work could proceed at both locations until the relocation and massive put-away operation was completed.

Managing the relocation and keeping track of stock “Accuracy was the key driver for the relocation operation and we put in place very stringent business process procedures to control the movement of SKUs from Regents Park to Greystanes,” Harris said.

“Every single item was scanned

out of its existing location, scanned to the pallet on which it would be transported to the new DC, and the pallet scanned to the delivery vehicle, each of which had their own unique ID. “On arrival at the new DC, the pallet would be scanned to confirm receipt, and the various SKUs on the pallet scanned to their new put-away location.

“This specific SAP solution provided a seamless process, which helped make sure every single item could be traced at every stage of the relocation, and ensured our inventory data was as close to 100% as possible.

“The commitment of Dematic and Icon to providing us with the optimum solution made what could have been a very disruptive process, one that has not only enhanced our IT systems performance and reliability, but which also ensures we have a future-proof IT systems solution that will continue to drive our distribution performance for many years to come.”

Supporting multiple business units with one integrated solution Brady’s new DC, designed in conjunction with consultants Peter J Ellis and Associates, supports the operation of multiple business units including Seton, Accidental First Aid, Trafalgar, Carroll and ID Warehouse.

“Across our different businesses we have some products that are common to all,” Harris explained “A feature of our new order fulfilment system is we are able to service all of the different businesses’ needs for a common SKU from a single location, optimising space efficiency and stockholdings.”

Another initiative that has improved distribution performance for Brady is its ability to receive Advanced Shipping Notices (ASNs) electronically. Knowing what is arriving every day enables Brady to prioritise inbound goods receipt and improve customer service by scheduling the fulfilment of backorders.

Voice-directed picking trolleys enable up to 15 orders to be picked concurrently across various zones within the warehouse and optimises the picking route for order assembly, reducing travel distance and the time taken to pick orders, maximising productivity and throughput. Orders requiring goods from different parts of the DC are consolidated prior to packing and despatch.

With a product range totaling more than 40,000 SKUs, much of the DC’s workflow is crossdocking SKUs. Where appropriate, some SKUs are also delivered direct to customers by Brady’s suppliers. logisticsmagazine.com.au

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factorymaterialshandling

New steel pallet racking standards

Despite safety campaigns over previous decades, too many people leave for work in the morning and never return.

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n 2009-10, 216 people lost their A new Australian Standard covers Dexion National Engineering lives due to injuries sustained the design of steel storage racking Manager Peter Geoghegan said the while working, and transsystems, and incorporates several new standard covers around 90 per port and storage (including changes to operational requirecent of steel pallet racking being warehousing) was one of the most ments and end-user responsibility. used in Australia. dangerous workplaces. FurtherWith the introduction of the “That includes adjustable static more, there were almost 9000 nonAS4084:2012 in February this year, pallet racking, but not drive fatal injuries and muscuskeletal the supply chain industry is about through, mobile or cantilever rackA D _ LinMthe H Ptransport RI F EB _ 1stor3 . p dtof takeP aa step g e in 1reducing 1 4 / indus0 1 / 1 3 , ing2 or : racking 0 9 P made M disorders and of materials age industry alone. trial fatalities. other than steel,” he said.

Geoghegan said all racking manufacturers and end user customers of racking products have a duty of care to comply with AS4084:2012.

He said the rigorous standard is because steel pallet racking presents unique challenges and dangers, and requires specific governance.

SAFE-D-CANT offers a wide “For example, a 1000kg pallet range of spill containment, drum on a typical pallet rack system has decanting and handling solutions approximately 50 times the applied 156 '(('%6+8' load per weight ratio compared to

+)* 37#.+6; /#07(#%674+0) #0& &+564+$76+10 a high rise building floor system. :%''&5 7564#.+#0 6#0&#4&5 Geoghegan said businesses will be affected in a few areas with the new standard including storage density ratios reducing as the standard necessitates an increase protecting the protec in flue space between pallets and in vertical separation over six metres.

Secondly, the new standard has tiers of analysis that allows for more economic racking design.

1300 134 223 Third, changes in statistical 1300 307 895 analysis of the testing data means sales@storemasta.com.au www.storemasta.com.au it now uses standard deviations, not just averages.

The standard also has a more definitive repair procedure.

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“This will help minimise confusion during maintenance and provide a safer workplace environment,” Geoghegan said.

Geoghegan said readers should ask for independent evidence of compliance from prospective racking manufacturers or suppliers.

He recommends document from an independent NATA laboratory or University. To ensure compliance of a racking manufacturer and structure design to the new standard ask the following questions: Was the independent testing done by a reputable University or NATA accredited authority?

Which components were tested?

What tests were conducted? All mandatory tests as specified in AS4084:2012?

Have the results of the tests been used to design structures to AS4600: Cold Formed Structure Code?

He said business owners should be aware of the changes to the maintenance of steel racking.

“The standard requires inspections of racking structures to be carried out on a regular basis, at least once every twelve months, and should be carried out by the racking manufacturer or an appropriately trained person.”

He added owners should keep a record of the inspections and any corrective action. Damage to the structure must be recorded under a new green, amber and red light type coding system.

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transport&logistics

Transporting

Australia’s most valuable assets One of Australia’s most experienced transport operators, Transit Systems, has been awarded a bus-operating contract for Contract 3 in Sydney’s bus network, adding another logistical transport contract to their growing business.

20 | Logistics&MaterialsHandling July 2013

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ransit Systems CEO, Clint Feuerherdt, said the appointment of the contract by Transport for NSW was a win for residents and the community.

“We’re excited to bring our extensive experience in running and optimising transport systems to the NSW market and look forward to delivering innovative long term solutions and value for money to the community and to the Government. We credit the decision makers involved in this process for choosing an Australian company committed to generating better transport outcomes,” he said.

Transit Systems is a familyowned Australian company that employs over 1,790 people and in 2011 transported 63 million passengers.

Feuerherdt said he believed Transit Systems’ passion for safe, efficient, reliable, innovative and sustainable transport solutions was the driving force behind the contract success.

“Our success stems from the fact that we don’t just run transport operations - across all of our services we are committed to optimising and enhancing outcomes and our bid for the Sydney contract included several ideas that we hope will improve the

service for passengers.

“At Transit Systems we are continually trying to improve the experience for customers. It’s a culture I am immensely proud of and has the customers where they should be - as Number One,” he said.

Feuerherdt added that passengers and the community served by Contract 3 will see immediate improvements to the services and fleet including the introduction of a significant number of new buses from the contract start date.

Transit Systems has all the elements of a great Australian success story, with its founders having started their careers at the logisticsmagazine.com.au

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grassroots level in the NSW bus industry over 35 years ago.

It is now one of the leading bus and ferry service providers in Australia with operations also in Western Australia, South Australia and Queensland.

With two five year contracts to coordinate the logistics for two of the LNG projects on Curtis Island, Transit Systems has shown how to successfully diversify to fill in transportation gaps. The company supply both the workforce and equipment that is required for construction to take place on the island.

First starting work in the area in 2011, the ferries now transport over 1000 workers to Curtis Island daily and are also responsible for the deliverance of other equipment as required.

“This is really our first major project in the resource space but we’ve been a contractor to state governments for many years, so we are quality assured, have safety systems in place and have quality management and we saw an opportunity to apply that to the resource space, “Feuerherdt explained.

Gladstone Port planning and development manager Gary Carter said the work Transit Systems are

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doing for the resource companies is an example of how differing sectors can benefit from working together to solve logistical issues.

“The establishment of this facility here by Transit Systems is a recognition of that,” Carter told LMH. Feuerherdt said his company is active in the local Gladstone community and often help to fund local events and give money to schools.

The company has invested $14 million in local housing in the region and its total fleet is worth around $50 million.

“We want to be here for the longterm,” he said.

Feuerherdt said the key to his company’s success was in giving local communities what they need.

“The key is thinking about the community and providing a service that suits them. If we are delivering transport systems that the community can use with ease and convenience, they will use it and implemented correctly, it will save tax payer dollars and provide a better all round transport network,” he said.

Many governments and businesses have seen the value in appointing the transport company: Transit Systems having been awarded more tendered

metropolitan bus-franchise contracts and transitioned more contracts than any other operator in Australia over the last 20 years.

Feuerherdt said the new NSW bus contract would improve services to the local Sydney community.

“Public transport isn’t just about getting from A to B – it’s a way to connect people with work and with their communities. We are dedicated to creating better transport solutions to make the every day easier for the people that use them.

“We’re excited that Transport for NSW has acknowledged our passion and commitment to enhance the Sydney buses network and look forward to working in partnership with the agency and the NSW Government to improve services for the passengers,” he said.

The contract will be transitioned

by October 2013 and will include a fleet of approximately 200 buses.

Contract 3 services operate in the central south-western area of the Sydney metropolitan area and serve area of 15,640 hectares.

It is bounded by the suburbs of Wetherill Park in the north, Fairfield in the east, Liverpool in the south, and Horsley Park in the west, with services connecting to Parramatta.

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forklifts,stackers,trolleys

Covering all the materials handling bases

Technological changes, such as the growth of electric powered forklifts, are changing the face of material movement.

From humble beginnings, Lencrow Group has grown to become a significant materials handling supplier. The company has extensive sales, hire, and service offerings. Matt McDonald reports.

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he Lencrow Group began life as Allforks Hire back in 1976. Operating from Silverwater in Sydney’s western suburbs, the company began with a fleet of 14 Hyster forklifts. As Lencrow Managing Director Ross Grassick told Manufacturers Monthly, “we have been operating for 37 years with the same owners and we still have an operation at the site we started at. We still even have some of the customers that we have working with for over 20 years.” So some things have remained the same since 1976, but much has changed, both for Lencrow and for materials handling in general. For the company itself, things have grown. As a single entity, it now L O0 7 1 3 _ 0 0 0 _ HAK. p d f Pa ge encompasses several subsidiaries, including

Nomad Lift Trucks, Pacific Rentals, Allforks Hire, Pro-Fork Materials Handling, Hilift Materials Handling, and Hilift Pacific. In geographical terms, it has expanded its operations and plans to continue to do so. “Both our short and long term plans are based on increased country coverage. This will in turn offer an increased level of service for our customers Australia wide,” Grassick says.

Most recently, the company opened a branch in Rockhampton. For local customers this will mean less down time, faster service back up and access to specialised parts.

Technological advances 1 1 5 / 0 5 / 1 3 , 2 : 5 9 : 3 8 PM Of course, Lencrow continues to update and

expand its product range. When asked about where materials handling is headed, Grassick points to technological changes within the industry. “Forklifts are like all mechanical devices in the fact that the industry is constantly evolving. Right now changes to electric powered units are making them a very viable AEST alternative to fuel powered units,” he says.

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forklifts,stackers,trolleys

These advances, he says, can deliver unit life cost reductions of up to 30 per cent and contribute to reductions in greenhouse gas emissions.

Japanese manufacturer Nissan and EP from China, both of whose products are available from Lencrow, have been at the forefront of advances in electrical operations. However, Grassick points out that, with a world market for components, the significance of country of origin is becoming less and less. For example, the EP Chinese product uses transmissions from Germany, motors and controllers from Italy, electrical fittings from the USA and hydraulics from China.

“They are all world units.” Grassick says.

Grassick says that the new technologies are also throwing forward advances in forklift safety. “Right across the ranges we now have drive systems that offer increased safety as well as better unit protection.”

In Australia, Electric forklifts are currently the most popular choice for those aiming to reduce their carbon footprint. In contrast, the European, British, and American markets have seen a greater up-take of other clean energy forkL M0 7 1 3 _ 0 0 0 _ H Y U 1 2 0 1 3 lifts, such as hydrogen fuel cell powered units.

Where is Lencrow headed?

From its roots as a hire company, Lencrow now offers rental, sales, and service divisions.

Today, 60 per cent of the company’s business is devoted to rentals and 40 per cent to sales, with servicing covering both sectors. Customers range from single person operations to national businesses with multiple sites and machines. However, it is not necessarily easy to distinguish the buyers from the renters.

The types of customers who buy and hire are quite similar. It comes down to personal choice. “Many companies prefer hire as it allows them to get a final cost budget and the equipment is not on the books with 100 per cent deduction.

They also do not have to manage the units as the hire company looks after maintenance and repairs,” says Grassick.

On the other hand, “The people that buy can see the advantage of depreciation over a number of years and they tend to have a lower usage requirement that requires less maintenance,” he adds.

Lencrow aims to be a one stop shop for 0 6 - 1 3 T1 0 : 2 7 : 5 0 + 1 0 : 0 0 materials handling. It can offer the full range

of material handling equipment required. For example, it offers several brands with unlimited configurations and distributes products

by Nissan, Ausa, Carer, EP, and Terex equipment, and more. The one-stop-shop philosophy means that customers are offered a range of hire and sales options to suit their individual needs.

Or, in some cases, a combination of hire and sales may the best fit.

“We have modelled the company on the basis that customers are time poor and do not have the time to go looking at many locations for the equipment that suits their requirement.

there is an alternative

We build a better future

1300 036 755 www.hyundaiforklifts.com.au logisticsmagazine.com.au

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bulkhandling

More than just MACHINES A new mining equipment manufacturing and service centre for the Hunter Valley is aiding growth in the region.Vicky Validakis writes.

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he site will manufacture and service coal mining equipment.

Despite apparent turmoil gripping the global mining industry, Australia is still riding high on its resources and mining know-how.

Recognising the still high demand for Australian mining equipment, Valley Longwall International have taken a major step forward.

Valley Longwall International (VLI) have opened a new headquarters and service centre just outside of Newcastle, that will contribute an estimated to $150m to the local economy.

At the opening was the NSW minister for resources and energy Chris Hartcher, as well as members of local parliament, and a high level delegation from China’s Taiyuan Mining Machinery Group Coal Machine Company (TMG), which is a major shareholder of VLI.

The development will aid materials handling underground.

The new centre of excellence will supply specialised equipment and allied services to the coal mining industry, both here and overseas, predominately to China and the US. The new centre will manufacture and service Australian-made mining equipment such as drift runners, drill rigs and jugs.

24 | Logistics&MaterialsHandling July 2013

VLI’s new underground jug, manufactured at their new facility in the Hunter

The site will be home to over 200 staff, with more than 12 research and development staff at the Beresfield site.

“The centre of excellence will provide a major boost to the local Newcastle economy and it will be our centre for developing new technology and driving safety improvements and training for our employees who work in the longwall coal mining industry,” said VLI CEO Brett Lynch.

VLI, a majority Chinese-owned company, operates specialise in drilling, diesel and conveyor systems generating over $60 million in exports.

The NSW minister for resources and energy said the new centre signalled the growing trade ties between Australia and China.

Previously the main trade between the Australian mining industry

and China was essentially just ore, however now there is a growing focus on the additional skills that Australia’s industry can bring particularly in terms of technology, safety, and experience.

“Up until now there has been a concern that Chinese investment was simply on raw materials but now we’re seeing a new stage of Chinese investment.

This is exemplified in this centre, in resource enrichment and the development of ancillary industries to support the mining industry rather than simply mining itself,” Hartcher told Australian Mining.

“It’s very important and we would like to see it encouraged more and we want to see a far more mature relationship between our trade and China rather than simply ‘we’re the raw materials, we’re the producer and you’re the consumer.’

“This is now the start of a good two way trade.”

However Lynch added that even though there is now a greater Chinese influence and stake in Valley Longwall’s operations and focus “Australia will remain a home for VLI’s research and development centres covering underground diesel equipment, drill rigs, and bulk materials handling equipment”.

Hartcher said he expected the recent slump in the coal market to improve, and touted the new centre as proof investors had not lost confidence in the sector.

“The mining industry is cyclical, it’s essentially export orientated, we think the scene for the markets is still good, obviously it’s not as good as it was, but there’s also a need for mining for the domestic consumption so centres like this will always have an important place,” he told Logistics & Materials Handling Magazine..

“They may not be on such a high as they used to be, but we expect that high to return.”

Lynch echoed this sentiment: “The industry will ebb and flow, but if we’ve got that quality base, that technical advantage, we will see the storms and troughs through.”

“VLI is committed to delivering high quality, innovative solutions for all types of mining, transportation and bulk materials handling industries.

“That is why we have invested in developing this new Centre of Excellence,” he stated. logisticsmagazine.com.au

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packaging

Robot revitalises pharmaceutical packaging line in Melbourne An ABB FlexPicker robot plays a role in an expanded packaging line that has increased production and throughput at a pharmaceutical plant in Melbourne, Australia. Kevin Gomez reports.

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2.4m (8ft) drop spec

he IRB 360 FlexPicker is the second generation delta robot solution for high-speed parallel arm pick-and-place applications.

The combination of ABB PickMaster software, IRC5 robot controller and FlexPicker can improve productivity and flexibility in numerous packing operations.

At the pharmaceutical production facility near Melbourne, engineers needed to increase production and throughput on the blow-fillseal packing line, which packages sterile liquids into blister packs.They decided to increase the number of items passing through process by speeding up the production line. The pharmaceutical plant’s packing line includes a sterile section where bottles are blown, filled and sealed before they are moved into a non-sterile packaging area for further processing and labeling.Here, a vision system ensures the bottles are correctly labeled. A robot picks up correctly labeled bottles and places them in blister packs, which are sealed, weighed, collated and bundled, ready for shipping.The line moves L Mand 0 7many 1 3 _precision 0 0 0 _ Iactions N T are - performed, 1 2 0 1 3 fast so it was essential that any solution to increase

line speed and throughput also guarantee the quality and integrity of the product, with a minimum of waste.

The pharmaceutical company hired Andrew Donald Design Engineering (ADDE) in Melbourne to do the design, build and installation.

“They helped with the selection of the robot, and then with the integration of that into the wider control system for the rest of the packaging line,” said the plant’s Capital Engineering manager, Simon Whitehead. “They made sure the installation was as smooth as possible, and that there`s as little downtime on the line as possible.”

For increased line speed to work, we needed a system that could “accurately and repeatedly put the product into the right part of the blister pack, every time,” said Whitehead.

“We also needed to be able to pick up the good product, dispose of any defects, and we needed a system that could repeatedly put those products into the right spots at the right time, at our increasing speeds.”

0 6ADDE - 1 1general T 1 1 manager, : 4 2 : 1Barry 1 + 1Hendy, 0 : 0 said 0 a key part of the solution was finding a system that

could correctly load the blister packs at high speed.

“We initially looked at dedicated pneumatic transfer equipment, but realised that FlexPicker could do this with a lot more flexibility and speed, and really expand the capability of the line by introducing the accumulator shelf. This has allowed us to keep the blister packer running much more consistently and reliably.”

ADDE is an ABB Authorised value provider, and has a lot of experience with ABB robots.

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Designing warehouses for efficiency Manufacturers looking to reduce their operating costs, should not ignore their warehousing and storage operations as considerable savings can be made there. Alan Johnson reports.

W

ith warehouses and distribution centres now a key part of manufacturing supply chains, especially with the dramatic increase in on-line shopping, it is increasingly important that these facilities operate as efficiently as possible.

In recent years there have been some major advances in picking technologies to reduce costs and improve accuracies and efficiencies.

According to Larry Sweeney, Senior VP and Co-Founder of US-based Vocollect (a division of Intermec), a leading provider of voice technology, the increase in on-line shopping is changing the face of warehousing as it becomes more complex.

“For example, many consumers are now doing their grocery shopping on-line, then going to the store to pick the groceries up.

“We are now seeing the retail store becoming a small warehouse where a worker takes a grocery list and picks the groceries from the aisles.

“We are also starting to see more multi-channel supply chains where consumer orders are being fulfilled through multiple channels whether they physically go to the store or do that on-line.

“Having the capability and the flexibility to respond to these dynamics both in the warehouse and in the retail store is a key focus for us going forward,” Sweeney told Manufacturers’ Monthly on his recent trip to Australia.

26 | Logistics&MaterialsHandling July 2013

Latest wearable voice system includes integrated hands-free scanning.

Voice-directed warehousing Sweeney says more and more companies, especially in Europe and the US, are taking advantage of voice picking technology and applying it across the board.

“We have a vision, which we call the voice centric distribution centre, where voice technology is used as a receiving tool, in the put away replenishment processes, plus picking, loading and inventory functions like cycle counting and inventory counts. We have several customers who are 100% voice in the warehouse,” he said.

According to Sweeney, alternative picking systems are either too expensive or not as efficient.

“For example, on first examination pick-to-light systems appear to be more productive, but that is this not the case.

“Comparing one person using pick-to-light to another using voice, you could look at them and think they are operating at the same speed, in fact the pick-to-light person might be a little faster.

“But in an actual warehouse scenario, with five or six zones for example, it’s a different story with the balance of products picked in each of the zones changing over time with one picker eventually becoming a bottleneck.

“While the picker in that particular zone is working as fast as they can, they are the throttle on the system, with pickers in the zones either side of that picker having to slow down.

“So when you look at the average pick rate across all pickers in a pick-to-light situation, it can be very low, whereas pickers using

voice just keep rolling.”

Sweeney says voice technology is applicable for all types of warehouses and DCs; “from 3 or 5 people right up to warehouses and DCs with 300 plus workers in them”.

“It is economical across the scale, with payback periods of nine to twelve months on our voice systems on average,” he said.

According to Sweeney, training for voice systems is now also shorter.

“We use a system called speakerdependant recognition technology where the user trains the machine to recognise his or hers voice patterns.

“This system delivers the highest accuracy for speech recognition, as opposed to speaker independent systems, with no training.

“Problems arise with those systems when the user has an accent or a dialect, and don’t recognise what is said accurately.

“With our system, it only takes about 20 minutes to familerise the user with the equipment and to create a voice pattern, and that’s it.”

“And with the increasing use of seasonal (un-trained) workers in warehouses, it’s important to keep training to a minimum,” he said.

“One of the concepts we are working on at the moment is ‘zerotraining’, which should be available next year.

“With this system, a worker can start working within a minute, using a training template. Then as they are going through their different work functions that template is learning their speech patterns on logisticsmagazine.com.au

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the fly,” Sweeney said. sites and see for themselves how Automated order fulfilment systems Recent advances from Vocollect the system works.

Mike Khodl, VP Solution Developinclude a wearable voice system ment with Dematic, a global leader with integrated hands-free scanning in intelligent logistics and materials - the Talkman A700. handling solutions, says multi-chanSweeney says the system facilinel distribution is driving important tates hands-free scanning for procchanges in the industry today. ess steps such as inducting totes “Retailers want to fill orders for at the beginning of assignments, large and small store formats and batch-picking, and product tracee-commerce from a single invenability, while remaining a compact, tory cube.” purpose-built mobile device.

To do that, he said, they need “Users now have one device with to transition from batch-based to the ability to integrate voice and dynamic, on-demand workflows bar code scanning. Companies can because they no longer know what now reduce the number of addi“Let the actual users do the talktheir workload will look like ahead tional devices that a worker has to ing, let them show you what they of time.” be assigned. like about the system, the advan“Our solutions for multi-channel “The devices also provide eyestages, how simple the system is and distribution operations are centred free and hands-free scanning so how fast it is. Before you commit to around modules that scale to changusers don’t have to remove the any picking system go to different ing operational needs and growth, device from their belt to complete sites and ask the users what they and have peak capacity flexibility the scanning.” like or dislike about the system they built in to accommodate seasonal, For companies looking to invest are using, then ask the operation promotional and weekly order in voice picking systems, Sweeney managers, get the real inside inforvolumes,” Khodl said.

A D _ Lthem M H to BU F Evisit B _ voice 1 3 . p d mation,” f P a gSweeney e 1 said.

6 / 1 2 / 1 2 , 3 : The 3 5 company’s PM advises goLand Multishuttle

The company’s Multishuttle automated order fulfilment system offers a high range of solutions for high volume order fulfilment operations.

automated order fulfilment system, for example, offers the storage, handling, buffering, staging and sequencing of totes, cases and trays in high volume order fulfilment operations.

Instead of the cranes typically used in automated storage and retrieval systems (ASRS), Multishuttle systems use a fleet of selfpropelled carts to retrieve and put goods away in a space-efficient storage system, at very high speeds.

Lifts at the end of each aisle transfer goods in and out of the system via integrated conveyors.

In a significant upgrade, Dematic’s second generation Multishuttle 2 incorporates advanced engineering, lightweight aluminium construction and a new load extractor for faster operating speeds, higher payload capacity and multideep storage capability. Designed to supply sequenced products for order fulfilment, pick face replen-

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Multishuttle systems use a fleet of self-propelled carts to retrieve and put goods away in a space-efficient storage system, at very high speeds.

types of packaging, without the use of trays.

The eight-finger design of the load extractor and overlapping telescopic arms enables Multishuttle 2 carts to store products single, double, or multi-deep.

Load capture fingers are carbon fibre reinforced for long-term performance, while the new load extractor design minimises space between products, maximising storage density, and can be configured to handle loads up to 50kg in a range of widths from 150-650mm, ishment or mixed case palletisThe all-new design Standard, ing, Multishuttle 2 can be utilised Flex and Belted Multishuttles in a wide range of applications enable the system to be tailored to from short-term buffer storage to meet each user’s unique product A D _ L Osupport.

G S I M O C T _ 0 9 . p d handling f P a grequirements. e 1 9 / 2 2 / 0 9 , production

28 | Logistics&MaterialsHandling July 2013

With telescopic arms that automatically adjust to the width of the load to be handled, Multishuttle 2’s Flex option enables the rapid 4 retrieval : 0 7 of PM variable load sizes and

lengths from 200-875mm, and from 50-600mm high.

Vocollect 1300 304 468, www.intermec.com.au.

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

logisticsmagazine.com.au

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BHP accused of rolling over on

VEHICLE SAFETY

As BHP brings in higher ANCAP safety ratings for its onsite vehicles, the prohibition of aftermarket roll over protection has raised ire amongst miners. Vicky Validakis writes.

I

n a phased approach from this year onwards, only vehicles with a Five Star Australasian New Car Assessment Program (ANCAP) rating will be allowed on BHP mine sites.

The policy applies to both BHP fleet and contractor owned vehicles on any BHP site anywhere in the world and to all new vehicles brought into service from January 2013 onwards.

The policy also prohibits the fitment of non-ANCAP compliant bull bars and aftermarket suspension kits (and upgrades) as

logisticsmagazine.com.au

well as roll over protection. But why now?

When contacted by Australian Mining, a BHP spokesperson said the company was committed to safety.

“The health and safety of all of our employees and contractors is our absolute priority,” she said.

“BHP Billiton continually reviews the company policies and procedures to ensure best practice is maintained.

“Our decision to move to the highest ANCAP safety rating will, by 2016, improve the safety rating

of an estimated 50,000 vehicles a year in Australia alone, resulting in broad community benefits as safer vehicles appear on the road.”

ANCAP have applauded the new measure by BHP stating that it will force car manufacturers into implementing higher levels of safety in light commercial market vehicles.

ANCAP chief, Nicholas Clarke, said the move would encourage car makers to take on similar policies.

“This demonstrates the supporting influence big business can have on manufacturers and we encourage other businesses, large

and small, to consider adopting a similar policy,” Clarke said.

“With one third of compensable work related fatalities involving a vehicle, vehicle safety is paramount in protecting our employees, and investing in safer vehicles is an investment in the safety of these employees.”

But with the ANCAP rating focused on the issues of on-road safety, not off-road, many believe the new policy will present increased safety risks to employees.

Critics are also concerned over the fact that aftermarket products like July 2013 Logistics&MaterialsHandling | 29

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Some believe ROPS may prevent egress in the event of a crush incident on site.

The discussion of ANCAP ratings over ROPS is whether safety is compromised.

bull bars and upgraded suspension cannot be retro-fitted, further adding to on-site safety issues.

The Construction, Forestry, Mining and Energy Union have also expressed concerns over the safety of the new policy.

Health and safety representative Greg Dalliston said he was concerned that new standards reduced rollover protection.

“All I’ve asked is that they show the standard that was on the vehicles before and the standard they’ve got now, the new standard, is equal to or better than what they had before and so far they can’t show me that.”

Dalliston said while they accounted for only a small number of total accidents, one-in-five fatalities were from rollovers.

“We’ve had 29 rollovers since January last year on mines in Queensland – 17 on coal mines and 30 | Logistics&MaterialsHandling July 2013

with the protective structures we’ve had in place, we’ve only had one person with some slight injuries,” he said.

The Australian 4 Wheel Drive Industry have also questioned the occupant safety protection afforded by the introduction new the policy.

Spokesman for the 4WD Industry Council (4WDIC) Stuart Charity, said it strongly supports the drive to improve vehicle occupant safety on and around mine sites but is disappointed by the lack of consultation.

“On the surface, most people would view the BHP policy as a great step forward. However, the 4WDIC is disappointed at the lack of consultation and the ‘one size fits all’ policy outcome,” he said.

“Australia has a large and innovative 4WD aftermarket industry. It offers a wide range of Australian Design Rule (ADR)

approved products designed to protect vehicles and occupants in our hostile remote regions.

“Among those proven products are bull bars, suspension enhancements for additional load bearing capacity and roll over protection systems (ROPS). The BHP policy takes little from the aftermarket industry’s extensive knowledge and experience in engineering vehicles to suit their intended end use.

“While the 4WDIC supports the move to ANCAP Five Star ratings for mining vehicles, we see no need to ban the fitment of safety equipment that does not adversely affect compliance with mandatory vehicle standards and does not reduce the safety performance of the vehicle.

“The 4WDIC believes this ban will result in vehicles that are less safe on public roads and in remote areas.”

Charity has also accused the major miner of slashing costs at the

risk of workers safety.

“We believe their intent was to reduce costs on the fit-out of vehicles using an ANCAP [rating] as a justification for everything but as I say, ANCAP has significant limitations when you’re driving in the sort of conditions that these vehicles are driven in.”

Charity says the policy does not make sense.

“We know that vehicles need to be modified for their end use - we’ve got supporting data to prove that,” he said.

“We’ve given that [to] BHP, they’ve chosen to ignore that.”

He added that vehicles are built off global platforms and sold into 40 different countries.

“We don’t believe they’re

BHP was accused of focusing on cutting costs rather than raising safety.

designed for the end use of mining applications,” he said.

According to Global NCAP, BHP’s decision was based on recent research at Crashlab in Sydney, to assess if bullbars and ROPS contribute to an increased risk of injury to vehicle occupants.

In its testing, four Toyota Hilux dual cabs were used – three of these vehicles were fitted with ROPS and logisticsmagazine.com.au

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one without. All four test vehicles were fitted with a steel bullbar.

The vehicle fitted with ROPS rolled 180 degrees onto its roof in the first test. The vehicle without ROPS rolled onto its side. The vehicle without ROPS was re-tested with 35kgs of ballast above the rear screen of the cab (to simulate the weight of ROPS at roof level) and rolled onto its roof.

For these vehicles and test configurations, the results showed: • for the corkscrew rollover test the ROPS structure appeared to increase propensity for the vehicle to roll by increasing the centre of gravity height.

• ROPS did not eliminate roof crush over the front seated occupants and, for a rollover of this type and severity, the ROPS demonstrated limited potential to reduce the risk of serious injury to the front seat occupants.

• any ROPS structure which prevents the as-designed deployment of side curtain airbags for the front and rear seat occupants greatly increases the risk of serious head or brain injuries in side impacts (with trees, poles and other vehicles).

• the bull bar fitted to the frontal offset crash test vehicle caused intrusion into the footwell and displacement of pedals which was not present in the ANCAP test of the same vehicle without a bull bar.

However, Susie Bozzini, a researcher at the Center of Injury research in California, is not convinced.

“Production vehicles generally have weak roofs: they crush at the front pillar when the windshield breaks and the roof caves in on the front seat occupants,”she explained.

“BMA ran a test with a production vehicle with a weak roof and the roof crushed significantly.

Then BMA performed the same test on the same vehicle with an internal 4-posted ROPS structure.

This type of structure is fitted behind the front seats at the B-Pillar area and extends rearward logisticsmagazine.com.au

to the C-Pillar. This internal ROPS works when the vehicle rolls without forward pitch, meaning nose down. However, when a vehicle rolls over with pitch, the forces are on the front of the roof at the A-Pillar and windshield header.

“So, it is not surprising that BMA got the same result with a production vehicle and an internal 4-posted ROPS for the type of test they did “I believe their goal was to be able to say that ROPS didn’t make a difference, so why spend the money on them?” she said.

However one miner, who has worked in the industry for a number of years, told Australian Mining that “I can honestly say after being in mine vehicles with and without ROPS, I prefer the w/o ROPS for my safety.

“I have seen Prado’s with ROPS that blocked the rear seat door handles. I have seen ones that caused injuries to heads, knees and feet of rear occupants in accidents, not to mention ROPS creating issues with ingress and egress.

“ROPS equipped vehicles are far more likely to roll at crawl speed on an uneven surface. There is no doubt ROPS changes the centre of gravity on light vehicles designed without them.

“And for those saying ROPS will protect you in an earth fall; I have also seen what earth falls do to equipment. Glass breaks and doors cave in crushing or filling the cab from the side usually before the roof caves down,” they stated.

“I realise there are a lot of Australian companies making big money off after market sales.

I am sure these systems add benefit for back country off road driving, but mines have strict safety management systems that require speed limits, adequate road construction and safe driving conditions. “Rarely does a mine vehicle go trailblazing across country like off road drivers do. So I don’t think it is fair for 4WDIC to compare mines to Australia’s

‘hostile remote regions’.”

They went on to stated that they were “not saying BHP is right or wrong, but it is nice to finally see a company raise the question and perform the research and analysis rather than just assume that adding more steel makes the vehicle safer.”

BHP told Australian Mining that “we recognise that industry members and representative may have concerns when we implement changes to our safety policies and procedures.

“However no changes are implemented without extensive research and consultation to ensure the most relevant safety technologies are adopted globally.

“We remain confident this is the right decision for our workforce and the community as safer vehicles appear on the road.”

But with the CFMEU claiming that the company refuses to hand over information regarding safety ratings – evidence of how the new policy will affect workers will result from the statistics collected when accidents occur. From the reaction from our readers who work on mine sites, most are clear about which vehicles they would rather operate.

“I would prefer to be in a vehicle with roll over protection on a mine than 5 star ANCAP,” one said.

“The ROPS secondary function is to give structural integrity (survival space) to the vehicle body in case of a landslide falling on top of the vehicle, especially on a rollover off ramps to open pits,” another worker noted.

The only thing left to see is if BHP will roll over to public opinion, or crush dissent.

July 2013 Logistics&MaterialsHandling | 31

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The World’s Most Important Gathering of Supply Chain Leaders 12 – 13 August 2013 | Melbourne, Australia | gartner.com/ap/supplychain

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