Logistics & Materials Handling November 2015

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Heavy lifts in La RÊunion World’s largest offshore gantry crane ready for action

Back to the future Staying ahead of supply chain trends

Maximum traceability Streamlining stores with automated ending

inside VOL45 ISS5 NOVEMBER 2015 Industry News Warehousing Cranes and Lifting Technology Freight Storage

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Accelerate productivity, profitability and operations.

Proactively respond to customer demand: Keep up with and proactively respond to customer demand, inventory turnover and regulatory requirements with warehouse management solutions designed for warehouse operations and highly specialised supply chains.

Communicate with your drivers anytime, anywhere: Zebra’s Fleet Management and Delivery Operation Solutions allow you to proactively maintain your fleet, track driver and vehicle performance, and ensure compliance mandates are being met.

Improve operational efficiency: Instantly track shipment contents, direct drivers to the next best dock, reduce idling and wait times, and improve turnaround times.

For more information visit www.zebraapac.com/tnl

Zebra Technologies Australia Pty Ltd Building 5, Level 1, 530-540 Springvale Road, Glen Waverley, Australia 3150 I T: + 61 3 8814 1500 I F: + 61 3 8555 4420 Š 2015 ZIH Corp. All rights reserved. Zebra and the stylised Zebra head are trademarks of ZIH Corp., registered in many jurisdictions worldwide. All other trademarks are the property of their respective owners.

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This issue November 2015

storage Streamlining storage for high-tech efficiency

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04 Bulletin Board logisticsmagazine.com.au

inside VOL45 ISS5 NOVEMBER 2015 Industry News Warehousing Cranes and Lifting Technology Freight Storage

Heavy lifts in La Réunion

06 Warehousing Advance your lighting

World’s largest offshore gantry crane ready for action

Back to the future

08 Cranes and Lifting

Staying ahead of supply chain trends

The world’s largest offshore gantry crane

Maximum traceability Streamlining stores with automated ending

10 Technology Mobilising your warehouse 14 Freight Dockside container handling made easy 15 Opinion The new supply chain

technology This month in LMH, Enerpac showcases the world’s largest offshore gantry crane, soon to join an offshore highway construction project at Reunion Island.

We look at Apex’s new series of cloudconnected equipment vending machines, and their capacity to enhance stores workforce productivity and beef up security against workplace theft.

Be ready for the warehouse of the future

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Zebra Technologies senior technical director Wayne Harper explains how you can get the most out of implementing mobile technologies in your warehousing operation.

Fedex Australia MD Kim Garner gives his take on the ongoing development of global supply chain logistics.

ASSOCIATE PUBLISHER: Martin Sinclair e martin.sinclair@cirrusmedia.com.au EDITORIAL CO-ORDINATOR: Ben Hagemann t 02 8484 0884 e ben.hagemann@cirrusmedia.com.au GRAPHIC DESIGNER: Dave Ashley t 02 8484 0710 e david.ashley@cirrusmedia.com.au PRODUCTION CO-ORDINATOR: Mary Copland t 02 8484 0737 e mary.copland@cirrusmedia.com.au KEY ACCOUNT MANAGER: Tim Richards t 02 8484 0829 e tim.richards@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 2015 issues of Manufacturers’ Monthly, FEN, Australian Mining, Food, and PACE magazines with a distribution of 14,901.

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

Tribunal ensures fair rates for truckies COLES has been pressured by the Road

industry is safer and fairer. Strong auditing

Safety Remuneration Tribunal (RSRT) to

provisions will ensure drivers are paid the

pay their fair share to ensure safe rates for

correct rate for their work,” Kaine said.

drivers, including provisions for auditing industry supply chains.

According to TWU National Secretary

Minimum rates for time spent waiting and queuing at distribution centres will be affected by the tribunal decision, as drivers

Michael Kaine, evidence provided by

are required to be paid for loading and

transport operators showed industry

unloading time in addition to servicing and

clients, like Coles, are increasing economic

repairing trucks and trailers.

pressure on operators and drivers by

Transport operators admitted in

seeking reductions in the amount paid for

evidence to the tribunal that economic

transport work.

pressure in the industry would ease if cli-

“Holding clients to account for paying

ents were required under the order to pay

enough to operators so all drivers can be

sufficient amounts, to ensure drivers are

paid safely is a vital part of making sure our

paid according to the rates model.

Among other operators, Coles will be made to pay fair rates.

New Sustainable Freight website enables access to environmental resources A new website aimed to provide easy access to ‘green freight’ information for South Australia’s $8 billion a year transport and logistics industry has been unveiled.

The website Sustainable Freight was officially launched by the South Australian Freight Council at Crown provides training to over 5000 operators each year.

Crown Equipment puts focus on training with new facility

its inaugural national conference, to reflect SAFC’s ongoing commitment to address environmental issues and promote a ‘whole of chain’ approach to the environ-

CROWN Commercial Training has made significant changes to its training

ment, transport and logistics

program with a new opportunity offered to design a new corporate train-

industries.

ing environment.

The site is designed to act as a

The new training facility comprises various common material handling

conduit between the freight and lo-

environments ranging from yard work to racking aisle work, right up to the

gistics industry (and its customers),

challenges involved in working in extremely tight surroundings with very

relevant environment and sustain-

narrow aisle equipment.

ability resources, governments and

According to Crown compliance and operations manager Hywel Williams, “We had our racking arm, Crown Warehouse Solutions, design and

the general public.

It was developed as a ‘one-

The new website will serve as a one-stop-shop for emissions reduction information. level and cannot be ignored.

According to SAFC CEO Neil

An array of case studies, policy and regulation guides, fact

Murphy, “While there is much

sheets, latest news and com-

install two new stockpicking aisles so that operators undergoing narrow

stop shop’ to support industry’s

debate about the impact that the

ments, multiple interactive carbon

aisle stockpicker training would be working in real-life conditions”.

efforts to reduce its emissions by

transport and logistics industry is

calculators and comparison tools

improving access to transport and

having on the environment and

are available for companies to

it is important that their training modules are kept to a high standard. To

logistics sustainability and environ-

whether these impacts can or

make environmentally sustainable

achieve this, the company has spent the last three years upgrading and

mental information and resources.

should be mitigated, it is clear that

decisions.

Crown is currently providing training to 5,000 operators annually, so

refining their training modules and materials.

Their training manuals are designed to be totally portable, so that

The SAFC acknowledged that

the environment is increasingly

In addition, Sustainable Freight

the interaction, impact and rela-

becoming part of the ongoing

promotes the industry’s green

operators who undergo courses in their own company premises are

tionship of transport and logistics

transport and logistics narrative

initiatives and raises awareness of

afforded the same quality training as those who undertake training in

with the environment is significant

and that proactive sustainability

the role and importance of freight

Crown’s Sydney facility.

at a local, national and international

measures must be introduced.”

transport to the economy.

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warehousing

Designers searching for a practical and financially scalable lighting experience have settled on a new LED technology that will feature in future highly efficient, modern building designs.

Advanced Lighting Pro switches on LED lights are progressively adding colour and character into warehouses around Australia.

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ED lights are highly energy efficient, using approximately 85 per cent less energy than halogen or incandescent lighting, resulting in significant savings for the power bills of both companies and consumers.

These lights also have a much longer lifespan than other types of lighting, with an estimated 25,000-50,000 hour estimated lifespan depending on the light used.

In recent years LEDs have significantly improved their energy efficiency and colour accuracy, thanks to the advancing technology used for commercial and private buildings.

The new WaveMax technology by CREE aims to work around building codes that limit the use of lighting power used by buildings through a unique streamline design.

A combination of glare reduction, hot spot elimination, and uniform light distribution means that WaveMax LED’s can create visually comfortable environments which will not set commercial environments behind financially.

Further customisation of the release and control of the light can enable LEDs to maintain high levels of efficacy in a range of colour temperatures.

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CREE have also committed to providing Parking Structure Luminaire technology for parking garage applications, which utilises the bright, uniform light for enhanced safety and visibility.

CREE executive vice president Norbert Hiller called WaveMax technology their “most intelligent light yet”, saying it will enable the future of highly efficient, modern building designs to be realised, without breaking the budget.

The luminaries can deliver more than 80 percent savings and quick payback of less than two years with once-a-day usage compared to metal halide lighting.

WaveMax’s high-performance lighting experience delivers by distributing visually comfortable light with exceptional uniformity, high efficiency, precise control and design appeal.

Featuring CREE DiamondFacet optical elements, installations can achieve 90 per cent optical efficiency whilst also enabling luminaires to consistently maintain high levels of efficacy from cool to warm colour temperatures.

Incorporating WaveMax technology, the IG Series LED Parking Structure Luminaire for parking garage applications, has an unmatched low-glare performance and exceptionally bright, uniform light and high CRI for enhanced safety and visibility.

A game-changer in optics technology, the LN Series Suspended Luminaire incorporates WaveMax technology into a unique streamlined design which provides a uniformed ceiling and task illumination with exceptional efficacy.

With its sleek and upmarket design, the LN Series of lighting is physically attractive for the modern environment, whilst also being easy to install, and surprisingly cost effective.

The IG Series LED luminaires are sleek, low-profile and light-weight making them the perfect solution for top grade parking facilities.

It delivers high efficiency with beautiful light characteristics and colour accuracy, while also maintaining colour consistency over the life of the product.

Together with Advanced Lighting Technologies, CREE are committed to providing the building design industry with solutions to common lighting problems. logisticsmagazine.com.au

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cranesandlifting

Hooking up in the tropics Testing has been completed for the world’s largest offshore gantry crane, a 4800 tonne monster bound for Reunion Island.

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ydraulics specialist Enerpac has completed testing of the world’s largest offshore gantry crane at its Hengelo manufacturing facility in the Netherlands.

The crane – incorporating gantry crane technology available from Enerpac for onshore and offshore use in Australia and New Zealand – will be used in the construction of a 5,400m bridge for an offshore highway on Reunion Island by French consortium Bouygues Travaux Publics, VINCI Construction Grands Projets, Dodin Campenon Bernard and Demathieu Bard Construction.

The French consortium is currently constructing a 5,400 m bridge for a new offshore highway in Reunion Island, French island located East of Madagascar in the Indian Ocean.

The coastal highway (Route du Littoral) will connect Saint Denis – the administrative capital of La Réunion – with La Possession.

The new highway will replace the existing coastal road, which is exposed to falling rocks and flooding from swells and tropical storms.

The large offshore gantry crane is one of Enerpac’s Heavy Lift Systems, which is part of their Integrated Solutions for safe, precise

The crane will shift concrete blocks for bridge construction.

8 | Logistics&MaterialsHandling November 2015

Designed using Australian technology, the crane was built in Netherlands and will be mounted on a jack-up barge, currently under construction in Poland.

control of movement and positioning.

Enerpac Integrated Solutions has been widely proven in Australasia as well as globally, including projects such as the $72 million Brisbane Riverwalk project, which involved lifting, shifting and positioning complex and heavy concrete castings.

Enerpac Mining and Integrated Solutions manager Warren Baltineshter said Enerpac’s global network was one of its greatest strengths.

“We’re able to share knowledge and expertise with Enerpac offices in more than 20 countries and it’s fantastic to see such an impressive project carried out successfully in Europe,” he said.

The Over Head Travel Crane (OHTC) comprises two pairs of lifting beams, with an overall width of 30m, and a lifting capacity of 4,800 tonnes for lifting, moving and lowering the concrete blocks for the offshore highway.

The crane is classified as A5 for the structure classification and M5 for the mechanism

classification and designed to operate in tropical marine conditions (IP66), and design and testing conforms to Bureau Veritas code for offshore Units.

The Enerpac OHTC will be used on a jack-up barge currently under construction in Poland.

Lifting and lowering is accomplished with a reeved winch system, based on eight grooved drum winches.

Longitudinal travelling of the gantry uses a trolley arrangement comprising two trolleys per lifting beam.

Each trolley is propelled with hydraulic drive motors and planetary gearboxes.

The wheels run on two parallel rails bolted onto the barge’s runway beams.

Side shifting of the gantry hoists in a continuous movement is achieved using long stroke cylinders.

OHTC testing has been conducted on one of the pairs of beams and included lifting 1100Te blocks, synchronised lifting of the block with a logisticsmagazine.com.au

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cranesandlifting

The OHTC has a lifting capacity of 4800 tonnes.

hook from each beam, and checking the crane’s positioning, lifting/lowering accuracy to 1 L M0 2 1 5 _ 0 1 5 _ B A C 1 2 0 1 5 - 0Each 1 - lifting 2 0 T beam 0 9 : has 3 3 an : 2overall 6 + 1 length 1 : 0 of 0 30m. millimetre.

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technology

Mobilising your warehouse – it’s not about the technology Aaron Petchell explains some of the key considerations for applying mobile technology in your warehousing operation.

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ll organisations with warehouse and distribution operations are focused on increasing efficiency and reducing cost. Many turn to mobilisation of tasks to save time and remove paperwork. But while most companies focus on buying the IT solution, it is the under-pinning user centric design, the integrated technology components and the people that will ensure the success of your business outcome. If you don’t get the following factors right, you will find your new IT mobile technology drowned in business and IT issues that prevent realisation of benefits.

1. Usability The greatest expenditure of effort in the warehouse is in the picking process. Technology plays a critical part in gaining efficiencies in stock picking labour time.

Working conditions in and around a warehouse can be harsh and the mobile device, often a tough pad and/or scanner, needs to factor this in. The device user will operate in sunlight, with dust, with greasy hands, with gloves and will need somewhere to pocket the device. The weight of the device needs thought when held for extended periods of time with one-hand.

Battery life needs to be assessed to know if mobile chargers are needed on equipment for appropriate run time. An extended battery could be an option, but this adds bulk and weight.

Above all else, remember the user WILL BREAK THE DEVICE (at some point) and so disposability versus ruggedness is important to weigh up.

We worked with a utilities company recently to get the right balance of all the above. The chosen Toughpad with scanner combined docking places on forklifts, trolleys and with hip holsters. A cradle for the trolleys proved a great way for the worker to be hands-free while being mobile.

2. Peripheral device mobility A lean warehouse considers streamlining and reducing waste wherever possible. An optimal 10 | Logistics&MaterialsHandling November 2015

Technology can greatly enhance stock picking productivity, but there are other more practical considerations to factor into your digital investment.

put-away process takes into account physical layout, frequency and material attributes and the use of technology.

The primary IT mobile device is not going to be the only tool needed for the job and design needs to consider physical layout as well as IT connectivity to create a lean IT process.

In our warehouse solution the Toughpad had an associated hip-holstered Bluetooth connected barcode scanner and a wireless label printer.

The small printers on forklifts and trolleys via cradles to be close to hand, proved a real lean

success, by removing from the process the label pickup step from fixed printers in the warehouse.

Today, more advanced IT solutions are also starting to include contextual information that assists the worker. We have seen Google Glass employed in warehouses providing information to workers.

3. Back-end system access Of course, warehouse applications need to interact with the back-end financial, inventory and logistics system. Data integrity and logisticsmagazine.com.au

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technology

information accuracy is crucial to lowering the carrying value of stock. Where custom programing logic is required to stitch together different processes, technical expertise and experience will play an important role in ensuring a seamless application.

A critical technical aspect of our developed application was the back-end record locking program. In the warehouse applications for our customer there could be multiple pickers or cycle counters working at once and grabbing the next available record. Logic must lock out someone else until a job line is complete. Consideration was given to the timeout of the lock. People may view a record only and then jump straight out, or half-finish a job before a shift change or the boss trumped them with an urgent side task.

The custom logic of the applications locking features can be complex and the requirements need to be defined and verified carefully with the users.

or appreciation of IT’s ‘teething issues’ around black-spots or latency.

IT engineers on our project were needed to survey the entire land area and configure correctly the wireless access point strength and remove any blackspots. Many wireless access points are often required to extend the coverage to all parts. However, we needed to ensure that the mobile device was optimised to grab the strongest access point and also, not stick too long to a weaker one. This was especially important in a warehouse that now has mobile devices whizzing about.

5. Really, truly, intuitive

A true enabler of IT as a trusted tool for the warehouse and a test of the longer term success is the business ownership of the handed over product. Training material must be almost non-existent. The warehouse users must be willing and want to train new starters and help each other out, because it is not an added 4. Network connectivity burden to them or seen as doing IT’s job. The Warehouses and the associated yard areas mobile solution must be a business tool, not just are big and device connectivity will be a something from the IT tools.

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user experience has proven a key to success for Ajilon. A simple example is the use of colours to assist users. A busy yard is often noisy and so error messages are not heard and, a busy user can often click through ‘OK’ or ‘Accept’ warnings. Changing the screen colour to red when the user is accepting dangerous goods or under ordered amounts is effective decision support.

A workforce that is improved with the right tools is more productive and effective and in the warehouse this means less ‘firefighter’ mode of working. Less errors and inaccuracies and the labour savings from a reduction in overtime are real business benefits that will make the CEO smile.

While mobilisation is the perfect way to achieve these benefits make sure your solution is driven by your business and staff needs and not by the technology!

Aaron Petchell is an Associate Director at Ajilon, responsible for leading change across a wider range of industries including largescale technology fronted programs.

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At Trojan, we go the extra yard to find the right person for the right job. For over 20 years, we’ve continued to build close relationships with our clients and candidates ensuring we have an intimate understanding of their needs. We’re proactive, determined and ready to work hard for you.

Transport, Warehousing and Logistics sector specialists

trojanrecruit.com.au

ADELAIDE • BRISBANE • MELBOURNE • SYDNEY • NEWCASTLE • PERTH

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technology

Be ready for the warehouse of the future Zebra Technologies senior director technical Wayne Harper explains the necessary considerations for staying ahead of the latest supply chain trends.

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oday’s warehouse professionals face a series of significant changes in the ways warehouses, distribution centres and the entire supply chain operate. The Internet of Things, total field mobility and innovations like wireless Wi-Fi networks, RFID infrastructure, voice-directed multi-modal picking, Near Field Communications, wearable smart devices, scanners and Real Time Locating Services are being utilised by businesses’ warehousing operations to accelerate productivity and profitability.

Customer demand for personalisation and insight are driving increased visibility, accuracy and efficiency. New regulations call for more accurate product tracking and tracing. The growth of omni-channel transactions creates the need for increased inventory control, flexibility and faster, more accurate fulfilment. All these factors contribute to the need to convert warehouses and distribution centres into assets for competitive differentiation.

The warehouse is no longer as a pure cost centre in which operational focus is placed almost exclusively on wringing out inefficiencies and inaccuracies in order picking, but increasingly as a powerful asset that can drive profitable growth for a business with a heightened focus on improving inbound, storage and outbound material handling What steps should your organisation be considering in response to these major changes?

The time to start is now, and the best way to begin is by carefully analysing the issues and evaluating the steps you can take to help your warehouses increase productivity while decreasing costs.

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Evaluate purpose-built and adaptable technology alternatives Evaluate the benefits of using technology that is purpose-built for specific tasks versus using more flexible, adaptable technology.

Consider how best to balance the mix of unique, task-driven form factors with technology that can be more readily adapted to a range of workflows.

Place renewed emphasis on risk management Changes such as new devices need corresponding adjustements to wireless systems, applications and cloud-based architecture.

Zebra Technologies surveyed warehouse IT and operational personnel in the manufacturing, retail, wholesale and third party logistics (3PL) market segments to share their thoughts and plans for addressing the new industry realities over the next five years. Our Warehousing 2018 Report highlighted some of the considerations businesses must make to address these new industry realities.

Make sure IT and Operations are on the same page With the survey uncovering key differences between IT and operations, you need both to work closely together even as each concentrates on its own specific activities. IT must be able to act as a voice of reason for high-level issues such as standardisation, integrity and risk management.

At the same time, operations must define and execute current workflows, plus identify new business initiatives and align with IT on the new systems, interfaces and workflows they will require.

Understand changing wireless needs and solutions The increasing demands on warehouse operations necessitate thinking of them as complete systems that enable and support new standards, devices and capabilities. It’s crucial that changes in devices and applications aren’t made without corresponding wireless adjustments. New devices, new applications, new cloudbased architectures and new tools, can dramatically impact the performance and reliability of existing wireless networks.

Plan for shifts in processes throughout the supply chain Look into how the increased shifts in frequency and size of deliveries and shipments, and shifts in upstream and downstream piece, case and pallet identification can affect workflow efficiency and productivity. Movement toward more value added services means you should explore partners and vendors with a broad portfolio to address your changing needs.

Dramatic change is already overtaking the warehousing industry, and with those changes come new and evolving risks. The challenge becomes how to insulate your organisation against them.

The goal is to turn activities driven by regulations into factors that also drive more value for the business: in terms of accuracy, efficiency, productivity and quality. Many of these are technology-driven, such as the increasing use of data capture at multiple process points and enhanced imaging technology to drive new capabilities with minimal disruption.

Consider the ramifications of more and bigger warehouses The need to expand the size and/or number of warehouses can significantly impact your technical planning, your staffing requirements and your ability to support processes and workers remotely. Shifting from a centralised system to a branch-based distribution and storage network may require new procurement, deployment, management, troubleshooting and security models for mobile and wireless technologies. logisticsmagazine.com.au

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storage

Streamlining storage for high tech efficiency Vending machines, traditionally used for sales of snacks and beverages, are being developed for use in the workplace to streamline stores distribution and enhance traceability.

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pex Supply Chain Technologies have released a new line of cloud-connected vending systems here in Australia.

Ideally designed for dispensing Personal Protective Equipment and other consumables, the Apex Axcess 6000 series incorporates a range of features, most importantly secure checkout of items.

With employees required to use ID codes or swipe cards which can be matched to workers or job numbers, assets can be easily tracked for consumption records, with uplink to the Cloud meaning the lockers can be recharged as required without requiring visual inspection to determine quantities needed.

Sensors determine the quantity of assets remaining in the lockers, and report online using the Apex Connect n Go technology.

The advantage of sensor-based trackability means that potential for workplace theft is significantly reduced, with no way to exploit the technology.

Proprietary software known as Trajectory Cloud means that the lockers can be monitored 24/7, with automated replenishment alerts providing a full list of precisely what has been consumed, putting an end to messy stocking runs.

In addition, the Axcess series of lockers put an end to the need for having a store-person on duty to dispense standard equipment, which reduces wait times for people needing equipment on the run.

The cloud-based system eliminates manual recordkeeping, and in turn generates a digitally searchable record, with nearinfinite capacity for Big Data analysis of usage for all items against frequency and other factors.

logisticsmagazine.com.au

Axcess Automated Locker Systems are suited to consumables and reusable assets such as power tools.

The increased level of efficiency equates to huge savings in terms of labour costs and man hours, as well as overall productivity on-site.

Apex chief innovation officer Ben Savage has been the driving force behind development of the Apex vending products, and has worked long and hard on ensuring the best possible outcome for the specific needs of their customers.

Savage said one of the key advantages of the Apex vending systems is the speed at which they can enhance productivity for stores

The EDGE 5000 series

staff, with only a short period of adjustment before staff become accustomed to restocking the new system.

“The first time someone uses it, they configure the system, and after that they get a restocking report that tells them what items go where,” he said.

“The positions can all be labelled, and if you were to change any of those positions, you would update the labels and retrain the system.

“Usually people spend the first week looking at their restocking report and it takes them a little time to work out where the items go as they get used to it, but after that they just get used to putting things in the same place.”

Most importantly if there is a restocking issue, the system has recorded the identity of the person who carried out the restock.

The traceability then enables supervisors to raise the issue quickly and easily without extensive staff investigation.

In terms of security and workplace theft, the system records every person that accesses the machine, whether to use an item or to restock, and syncs that information with the Cloud for immediate visibility.

If anyone was to take an item which they did not require, their identity is recorded and traceable, as well as the items removed thanks to sensors in each module which determine what has been removed and what is left behind.

Savage said this traceability has an immediate effect on employee behaviour.

“It’s really amazing how much reduction [in theft] happens, not because I put restrictions on what people can get out of the machine, but just by the fact I’m tracking who is doing what, people change their behaviour automatically.

“If you make it that people can just take anything, they will take as much as they want. But as soon as they know that they have to log in to get an item, their behaviour changes, and I don’t have to do anything else.”

The Apex systems are also suitable for tools (such as in the context of a large construction project), reducing the number of staff required in stores to ensure that workers can access the equipment they need, with full automatic recording of identity, reducing the incidence of misplaced tools and workplace theft.

November 2015 Logistics&MaterialsHandling | 13

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freight

Pickerings general manager Roger Pickering.

The Mobicon container straddle carrier.

Moving with the demand Roger Pickering understands that a family business needs to change with the times.

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ustralian freight company Pickerings started from humble beginnings 65 years ago, but since then it has kept up with new developments in the freight container business.

With a loan of 500 pounds from his grandfather, owner Roger Pickering’s father Ted and uncle George started the family transport business back in 1950 with a single, secondhand, fire engine-red 1942 army Dodge that they used to run local cartage around the Swan Hill region during the winter months when the family pumpkin farm was quiet. The business grew from there.

They joined a local group of owneroperators at Lake Boga and started to carry produce from that region into Melbourne. Over the years, the other owner-operators dropped off and eventually Ted and George owned the business outright.

In 1977 they acquired a second transport business and in 1979, their third.

They slowly increased their fleet, eventually handing day-to-day control over the to next generation of Pickerings.

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Roger got involved in the business when he was “just a kid” as he says.

“It was what you did back in the 1960s. I went to work with my father and just grew up in the business. By the age of thirteen I was out loading and unloading trucks. By fifteen I left home and came to work in Melbourne, having achieved all I was going to achieve in school,” he says with a sly grin.

He worked his way up through the business and today, as General Manager, he has his hands full managing a fleet of over 115 line haul truck and B-Doubles, 60 rigid traybodies doing local work and about 360 staff across 11 branches.

“We first got in touch with Mobicon because we have a growing trend in export and containers and we had to find a better method of lifting them on and off,” he explains.

“Everything you do is about reducing costs and labour costs are a very large portion of our business.

In Melbourne we were lifting all our containers with a side loader which was a 24 minute process. The first Mobicon that we bought a couple of

years ago halved that time. The new one has halved it again, down to a 6 minute process.”

He says they looked closely at getting a large forklift “but the footprint on the ground of a big fork is exceptionally heavy comparative to a Mobicon. The pavement we have wouldn’t be suitable to a big fork. It would have broken up very quickly.”

“The Mobicon will also work in much tighter areas – just a safer, more seamless operation,” he says.

“One of the other things I liked about the Mobicon is the entry.

When you straddle the container, there are very few, if any, objects that can be hit as the driver bumps the container – and they obviously inadvertently do do that. The Mobicon to me is quite a solid, sturdy piece of equipment.”

Roger liked his original Mobicon so much that he was the first customer in Australia to purchase their latest model – the Mobicon ECO Top Lift Two High. The third Mini Straddle Carrier model in their ECO series has a top spreader that can stack containers one over one (or two high).

“The beauty of this new Mobicon, for our branch in Melbourne, is that we’re in a confined space and, if you get 25 or 30 full containers, our yard is quite congested. Now we can double stack them, which doubles the number that we can store, and reduce the space that we need. Melbourne land values are quite high and, you know, to be able to utilise it better with the double stacking is absolutely paramount.”

Tom Schults, the inventor of the Mobicon and Managing Director of Brisbane-based Mobicon Systems, says the introduction of the new model was the result of customer feedback.

“In the past we have received quite a few requests for a stacking Mini Straddle Carrier and the new model has already generated a lot of interest from around the globe,” says Tom. He claims the Mobicon ECO Top Lift Two High Straddle Carrier Model is perfect for companies that require speed in their operation and where yard conditions may not allow the operator to exit the cabin and where space is at a premium. logisticsmagazine.com.au

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opinion

Small businesses and the new supply chain Kim Garner, managing director of FedEx Express Australasia, talks on the ongoing development of global supply chain logstics.

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n recent history, there have been two radical transformations in the way we interact and do business that have impacted the global supply chain. These were driven by great innovations that touched every facet of our day-to-day lives.

The first was in the 20th century, when the focus was on speed and agility. Arguably the biggest game-changer of that century was the invention of the aircraft, which allowed people and freight to travel at unprecedented speeds. Global trade became fast, with goods moving across entire nations in less than a day.

The second transformation is the digitisation of the 21st century, which has not only made things faster, it’s created greater precision and connectivity. Widespread access to the internet and the proliferation of internet-enabled mobile devices has revolutionised the way customers and businesses interact. Businesses have never been more connected to such large numbers of people across the globe. This means being more accountable to customers than ever before. For businesses transporting their products, recent technologies such as tracking devices have given consumers visibility that wasn’t even imaginable 40 years ago.

For businesses to effectively expand their customer base, both domestically and internationally, they must not only understand these shifts, but how to act on the opportunities they present.

Big changes with big opportunities One of the most significant opportunities presented by the new realities of the supply chain is the rise of the ‘micro-multinational’ the potential for smaller businesses to become international. In the early 20th century only big businesses were able to gain the economies of scale that allowed them to export. Now, whether you’re a multi-national conglomerate or a two-man operation being run from a garage in Wagga Wagga, you can sell to customers from Beijing to Berlin. Put simply, smaller businesses are now able to get their piece of the pie.

FedEx customer Jane Ramsay provides a perfect example of how anybody with an idea can have customers on a global scale. Her fashion business launched right after the Global Financial Crisis, leaving Jane second guessing logisticsmagazine.com.au

her decision to start a company. Consumer confidence was down as the Western World recovered from the largest financial crisis it had experienced in decades. To add to the mix, Jane’s business, like many small businesses, started with minimal capital, seeing her run a fashion label from her family home.

concerned about the impact of environmental factors like light, pressure and temperature, particularly on a longer journey. In response we developed SenseAware, technology that not only tracks the location of the package, but provides this environmental data on a real time basis. It’s all about delivering what they want.

Businesses have a wealth of options, so they should tailor their solution to their customers’ needs. With consumers’ expectations changing, businesses need to manage their supply chains effectively and use the technology available to them to ensure a streamlined, sophisticated approach. A sophisticated supply chain creates a better experience, which results in the tangible business result of a long-lasting customer that is loyal to your brand.

What’s the next destination?

Jane Ramsay still operates today as a successful Australian fashion label, because the new supply chain allowed Jane to ship products across the globe to customers who were able to engage with her brand via the Internet.

Efficiency is the new speed Another trend that businesses of all shapes and sizes need to understand is the move away from focusing primarily on speed, to looking more holistically at efficiency. For many businesses, a slower process that allows for precision and predictability can serve their customers better.

For example, it may make economic sense for a business to transport certain goods by sea rather than by air, particularly for heavier types of freight. This is all about trading off the costs of holding inventory versus the costs of faster air freight. But for many commodities, businesses can benefit from lower inventory levels supported by international air freight. In these cases, customers benefit from better price mixes, and they are able to track the progress of their goods through the use of tracking devices meaning they’re less likely to experience anxiety over transit and arrival information.

At FedEx, we’ve adapted to changing customer expectations by developing innovative new technology. For example customers transporting goods such as healthcare shipments may be

We cannot predict where the supply chain will go next, but we do know that the transformation isn’t over. It’s likely we will still use planes, trucks and ships to transport goods well into the future, but technological advances will undoubtedly create new modes of transportation and communication.

Already in manufacturing, people are no longer talking about ‘off-shoring’ or ‘near-shoring’, but ‘next-shoring’ - not moving manufacturing from one location to another, but “adapting to, and preparing for the changing nature of manufacturing everywhere” according to a report from McKinsey. According to the report recent innovations such as 3D printing could embed themselves in the supply chain, with companies choosing to replace traditional suppliers of parts with targeted usage of in-house printers.

Another trend we can be sure of as technology advances and more people gain access to the Internet in different ways, is that the world population will become more connected. This will mean new opportunities for the supply chain, as businesses will be able to access more customers around the world.

Business leaders will need to keep up with these changes and ensure they’re leveraging the potential of new technologies to enhance their customers’ experience. Failing to adapt means losing the competitive edge and ultimately losing customers.

November 2015 Logistics&MaterialsHandling | 15

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