Logistics & Materials Handling - Feb/Mar 2018

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inside FEBRUARY/MARCH 2018 Toll Group on millennials Australia’s rail revival The gamification of logistics A new freight capital

UNTAPPED POTENTIAL Finding the future workforce

Official Partner

This Inissue this issue March 2016 February/March 2018

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Into the unknown

As we settle into 2018, many among us may find that our best-intentioned new year’s resolutions are already forgotten.

In business, structured reflection with a view to improving processes is a powerful tool.

However, failure to see change policies through and remain open to self improvement may have far direr consequences than a lack of resolve may have on a waistline.

With each passing day, month and year, future technologies – and the concerns that often accompany them – edge ever closer. The possibilities of automated transportation and machinery are countered by uncertainty around what exactly tomorrow’s workforce will do. With a shortage of young talent heading towards the industry, it’s also unclear what that workforce will look like. Those working in and supporting the industry are realising the importance of remaining agile and responding to trends shaping its future.

In this issue, Logistics & Materials Handling asks Deakin University’s Centre for Supply Chain and Logistics how it plans to help the logistics industry attract the 50 per cent of the population that it has traditionally overlooked (page 14). We also share the insights of Michael Byrne, Managing Director of Toll Group, Proving profitable growth at the cutting including the universal truth that connects ed Proving profitable growth at the cutmillennials and allprofitable of the generations have ting edProving growth that at the come before them (page 18). growth at cutting edProving profitable At the AusRAIL PLUS 2017 event, the the cutting edProving profitable growth Australiasian Railway Association revealed that at the cutting edProving profitable one freight traincutting can getedProving 110 trucks.profitIn our event growth at the report on page 22, find out why this is “the able growth at the cutting edProving most exciting time” in the past century for rail. profitable growth at the cutting edProvWe also consider what lessons the success ing profitable growth at the cutting ed- of Pokémonprofitable GO can teach the logistics industry.

Proving growth at the cutting Happy reading. edProving profitable growth at the cut-

behindthecover

ting edProving profitable growth at the cutting edProving profitable growth at the cutting edProving profitable growth at the cutting edProving profitable growth at the cutting edProving profitPhilippa Edwards | Editor able growth at the cutting.

28 Contents COVER STORY

31 Eyes on the prize

14 Women in industry

We celebrate three remarkable people whose work is helping to make logistics careers more attractive and rewarding for women in Australia.

contents

04 Bulletinboard

FEATURES 06 Mercury Awards 18 MMercury anagingAwards disruption 2010

In the increasingly complex world of supplychain logistics, ensuring end-to-end visibility of product movements is no longer just a possibility – it’s becoming a necessity.

Tru-test of quality.

42 Data Capture & 34 Digital realism Supply Chains marvels, 24 Factory MaterialsInspired by computer-generated Sustainable supply chains.

Handling

the logistics industry looks to the future for performance gains.

The working world the millennial generation will Spiral conveyor solves launched.

44 Forklifts & Lifting inherit will be competitive, fast moving long. heat and problems.

Humbled and Exalted Six new overhead cranes 36 Refurbish, reuse, recycle Michael Byrne, Managing Director of Toll Group, Cart dollies for simple – 2009 Mercury Awardleaders are obligated for Ferrocut.

An innovative Queensland company has become explains that today’s to handling tasks. winners. a textbook example of how to succeedreduces by taking equip their successors with the skills needed to Airfreight system advantage of cost efficiencies created by using survive, thrive and drive productivity.

Double pallet dispenser. handling costs. pre-owned assets.

14 Training Palletising robot.

Hybrid forklift.

22 Renewed focus Bell’s Transport Australia’s railbenefits freight industry has been in 38 5 steps to load integrity fromthe Skills for Growth spotlight in recent months,32 with the Inland Warehousing & Storage Industry expert Richard Layton shares his top 49 Handling Hazardous program.

Rail project on track to bring back the mode’s tips for maintaining load integrity, while looking Goods Record picking visibility – and, importantly, its viability. after the bottom line. productivity.

Gloves for handling AusRAIL PLUS 2017 looked to champion the 16 Information hazardous substances. mode’s successes, and potential. Automated storage.

Technology - Supply Hand-held eyewash.

Chains Storage success.

26 Supply chain showcase Information driven.

03 From the Editor New multimodal trade show MEGATRANS2018 04 Industry News is poised to champion the individuals, organisations and products that bolster 11 Global News Australia’s supply chain. Here’s a rundown of 12 Australian Logistics Council

Regular Run

mercuryawards

what you can expect to see.

28 Australia’s new freight capital?

Parkes in New South Wales has set its sights on becoming the hub of choice for the country’s logistics operators.

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Industry News

Barnaby Joyce appointed transport and infrastructure chief engage with trucking operators on the details of heavy vehicle reforms, and we look forward to that continuing,” said Crouch.

“There is a pressing need to enhance a new national agenda on land transport safety and productivity, and the ATA looks forward to engaging with Barnaby Joyce, Paul Fletcher and the Australian Government to make this a reality.”

Warren Clark, CEO of the National Road Transport Association (NatRoad), added: “We look forward to working with Barnaby Joyce, in building a safe, efficient and effective road transport industry for future years.

“We welcome a fresh perspective to a portfolio which is a vital component of building Australia’s productivity, particularly in rural and regional Australia.”

Clark noted that he looked forward to meeting with the new Minister to discuss prominent issues facing today’s trucking industry, such as the lack of national consistency in regulatory requirements and enforcement, access restrictions for high-productivity vehicles, and traffic congestion in urban areas.

“We’d also like to extend our appreciation to outgoing minister Darren Chester, for his contribution to the road transport industry in his time as Minister,” Clark added. “We admired his energy, intelligence and commitment to the portfolio.”

Crouch also paid thanks outgoing Transport Minister Darren Chester for his service.

“The trucking industry thanks Darren Chester

for his work as Transport Minister and, in particular, his commitment and passion for road safety,” said Crouch.

Following the announcement of the cabinet reshuffle, Darren Chester issued his own statement. “It has been an enormous honour and a privilege to serve in Cabinet in the best portfolio possible, infrastructure and transport,” he said.

“Over the past two years, I’ve been part of policy and project decisions which will change lives and save lives across our nation.

“I’m proud of the work my team and I have done on behalf of the Government and I’m sorry we won’t get to finish some of the jobs we’ve started,” he said.

Barnaby Joyce, Deputy Prime Minister and new Infrastructure and Transport Minister.

Image credit: Apple and Pear Australia, 2014, Creative Commons.

The trucking and logistics industry welcomed the appointment of Deputy Prime Minister Barnaby Joyce as the new Infrastructure and Transport Minister in mid-December.

“Barnaby Joyce has a wealth of experience and understanding of regional Australia, and understands the importance of roads and transport to communities’ right across Australia,” said Geoff Crouch, Chair, Australian Trucking Association (ATA).

“Trucking is an enabler of opportunity, allowing businesses to reach domestic and international markets, consumers to purchase goods, farms to sell their produce, and construction materials to enable new developments.”

The Deputy Prime Minister will be responsible for a significant transport agenda in 2018.

“The Government has announced a $75 billion infrastructure program, plans for progressing road pricing reform, launching a new national freight and supply chain strategy, and important reviews into safety accreditation schemes, the National Road Safety Strategy, and the National Land Transport Network,” said Crouch.

“It’s a significant to-do list and the ATA looks forward to working with the Government to ensure the views of the trucking industry are well represented.”

Crouch also welcomed the reappointment of Paul Fletcher as Minister for Urban Infrastructure, and now also with responsibility for cities.

“Paul Fletcher has shown a commitment to

Australian Government to support MEGATRANS2018 The Australian Government has announced its support of inaugural supply-chain event MEGATRANS2018.

In a letter confirming the Government’s support, then-Federal Minister for Infrastructure and Transport Darren Chester cited the event’s relevance for the national freight sector and supply chain.

“This inaugural conference will bring together participants from the logistics, materials handling and freight industries to consider key issues for 4 | Logistics&MaterialsHandling February/March 2018

the freight section,” said Chester.

“This conference complements the Government develop of a National Freight and Supply Chain Strategy for Australia’s future.

“The Government looks forward to working with the freight and supply chain industry to deliver future prosperity and competitiveness. This conference will be an important component toward shaping that outcome.”

The Australian Government joins the growing list of MEGATRANS0218 sponsors, which include

the Victorian Government, the Port of Melbourne and Isuzu Trucks, to name a few.

Connecting the Australian and international supply chain, the three-day expo will bring together those who plan, implement and control the efficient and effective forward flow and storage of goods, services and related information between the point of origin and point of consumption.

MEGATRANS2018 will take place over the Melbourne Convention and Exhibition Centre’s 30,000m2 of space, 10-12 May 2018.

Industry News

Amazon launches in Australia, offers one-day metro delivery In early December, Amazon launched its full Australian online retail operations at Amazon com.au.

The site stocks products across more than 20 categories – from consumer electronics to clothing.

Amazon Australia offers free delivery on eligible orders above $49, and one-day delivery in select areas across Australia.

The company expects to launch its ‘Prime’ shipping, shopping and entertainment benefits in Australia in mid-2018.

“Focusing on customers and the long term are key principles in Amazon’s approach to retailing,” said Rocco Braeuniger, Country Manager, Amazon Australia.

“By concentrating on providing a great shopping experience and by constantly innovating on behalf of customers, we hope to earn the trust and the custom of Australian shoppers in the years to come.”

The selection at Amazon.com.au includes products offered by large Australian brands, as well as small and medium-sized Australian businesses selling on Amazon Marketplace.

Customer orders are fulfilled from Amazon’s Dandenong South distribution centre, and Amazon also has corporate offices in Sydney, Melbourne, Perth, Brisbane and Canberra that house more than 1,000 employees.

“Over time, we will create thousands of new

Rocco Braeuniger, Country Manager, Amazon Australia.

jobs and invest hundreds of millions of dollars in Australia,” said Braeuniger. “The result will be an ever-improving customer experience driven by the regular introduction of new products and services that we hope customers will love.”

Shares in Australia-based global delivery logistics software company GetSwift doubled on 1 December, following the news that it had signed a ‘master services agreement’ with Amazon, the Australian Financial Review revealed.

“GetSwift is pleased to announce that it has signed a global master services agreement with Amazon,” GetSwift said in an ASX announcement.

“The extent of the services to be provided and the revenues to be derived will be generated from specific transactions agreed with Amazon pursuant to the Master Services Agreement.

“Due to the terms of the agreement the number of deliveries this agreement may generate is currently not determinable.”

eBay and DHL partner with 24/7 delivery network ‘Hubbed’ Online marketplace eBay and logistics company DHL’s e-commerce business have partnered with parcel delivery network Hubbed, which provides parcel delivery to its network of petrol stations, convenience stores and newsagents for parcel drop offs and pick ups.

Through the partnership, eBay sellers are now able to print shipping labels and drop off their customers’ goods at any of Hubbed’s 1,000 stores, the majority of which are open 24/7.

The new partnership with DHL eCommerce enables Australian online sellers with a Hubbed account to send parcels to shoppers across 220 countries and territories by dropping off parcels at a Hubbed store.

6 | Logistics&MaterialsHandling February/March 2018

“The Hubbed model has put the customer at the heart of the delivery cycle,” said David McLean, Founder and CEO of Hubbed. “The seamless integration of our extensive parcel drop off network with our delivery carriers, and our low flat rates, is an attractive alternative to eBay sellers.

“Our major advantage is our network of stores that operates late – and over 60 per cent operate 24/7. Until now, online sellers were required to drop off their parcels during business hours at the post office or waited around for a pick up.

Now, sellers can drop off at a location close by at a time that suits them including weekends.

Hubbed completes the full delivery cycle, from

domestic and international shipment, to click and collect, returns, and a pick-up point for failed deliveries.”

Charles Brewer, CEO of DHL eCommerce, added: “With online shopping sales by Australians reaching around $20 billion a year, and the number of parcels expected to rise in tandem, both sellers and shoppers need greater convenience and choice in the way they deliver and collect parcels. We are pleased to provide a boost to e-commerce in Australia through convenient drop-off and pick-up points now available extensively across the country to enable delivery to over 220 countries and territories worldwide.

Industry News

New role for Toll MD Deakin University’s Centre for Supply Chain and Logistics (CSCL) has appointed Toll Group Managing Director Michael Byrne as its inaugural Adjunct Professor.

CSCL Director Dr Hermione Parsons said Byrne’s extensive experience in the supply chain and logistics sector positioned him as an innovator whose insights were highly sought after.

“Michael is a statesman, a thought leader and a visionary,” said Parsons. “He has an exceptional mind. He makes an exceptional contribution to this industry and is so generous with his time and his thoughts.”

Byrne warmly welcomed his appointment as Adjunct Professor, using his inaugural address to urge the industry to help shape the next generation of innovative thinkers.

“As industry leaders, it is incumbent upon us to attract, retain and develop talented people to propel our industry forward,” said Byrne.

“In order to do this, the industry must take an active role to shape the next generation’s curriculum, by making mathematics a core subject, expanding languages to build a multilingual Australia and rethinking higher education as a norm – not an exception.”

CSCL will draw on Byrne’s history of thought leadership to help inform the direction of its research and education programs, and address students.

“CSCL believes strongly in industry engagement

as a means of underpinning our applied research projects,” said Parsons.

“It’s a pleasure now to also have Michael supporting us as an Adjunct Professor, and I look forward to working with him.”

Toll Group Managing Director Michael Byrne and Dr Hermione Parsons, Director of Deakin University’s Centre for Supply Chain and Logistics.

logisticsmagazine.com.au | 7

Industry News

SCT Group expands VIC Heinz DC The Victoria-based national distribution centre (DC) of food manufacturer Heinz is to be expanded by owner SCT Group.

The Heinz Altona Distribution Centre will be expanded to 45,700m2 of warehouse space.

Upgrades include the installation of energy-

efficient LED lighting, new rapid doors, additional recessed loading docks and bird-netting to the 3,400m2 of existing canopies.

“Our national DC has been at SCT’s Altona intermodal facility now for over 15 years,” said David Moyle, Heinz’ logistics boss. “We’re looking

forward to benefiting from the new rail services to Brisbane and direct rail port shuttles in the future.”

The expansion is set to be completed in October 2018, reportedly making the facility one of the largest warehouses in Melbourne’s western suburbs.`

Kalmar acquires Australian port service business Materials handling equipment manufacturer Kalmar, part of Cargotec, has signed an agreement to acquire the port services business of Inver Engineering in Australia.

The investment reportedly supports Kalmar’s strategic aim to grow in services while strengthening and broadening the company’s existing service capabilities throughout Australia, New Zealand and the Pacific.

The acquisition closed on 29 December, 2017.

Inver Engineering, a privately owned company established in Melbourne in 1981, services ports, and the rail, petrochemical, oil and gas and manufacturing industries, while Inver Port Services, part of Inver Engineering, provides repairs, maintenance and crane refurbishment projects for terminal operators across Australia, New Zealand and the Pacific.

“We are excited to welcome the Inver Port Services team to Kalmar Australia,” said Peter

McLean, Senior Vice President, Kalmar AsiaPacific. “The region is a strategically important market for Kalmar and this acquisition further

strengthens our capabilities to serve our customers in ports and terminals across the region.”

Kalmar's acquisition strengthens the materials-handling equipment manufacturer's capabilities in Australia.

DHL to bolster Irish and UK food supply chain Taste Ireland, an Australian distributor of Irish and British foods, has entered a new end-to-end freight agreement with logistics company DHL. DHL Global Forwarding will ship Taste Ireland’s products on direct sailings to Australia, selected to minimise transit times and the risk of in-transit food expiry, transporting temperaturesensitive products in refrigerated containers.

Prior to shipping, DHL will consolidate and pack Taste Ireland’s orders from customers including supermarket chains Coles and Woolworths as well as Irish pubs in Australia, to reduce container numbers and optimise transport costs and times for the distributor.

8 | Logistics&MaterialsHandling February/March 2018

“We chose to work with DHL because of their exemplary track record in handling time-sensitive food shipments with strict compliance, accuracy, and efficiency,” said Eamon Eastwood, CEO, Taste Ireland.

“As our business continues to grow at breakneck speed, we needed a forwarder who could not only simplify and speed up our shipping process across numerous line items, but give us full visibility of and confidence in our shipments’ freshness when they arrive at each customer’s door.”

DHL will also pre-clear Taste Ireland’s shipments with Australian customs, and offer

door-to-door airfreight for urgent shipments.

“We’re excited to be helping Taste Ireland as it makes the leap from SME (small to mediumsized enterprise) to global supplier of repute, by giving them total visibility and compliance across every facet of the logistics process as well as the support of our world-class customs clearance processes,” said Tony Boll, CEO, DHL Global Forwarding – South Pacific.

“The time previously spent on in-house logistics management can now go into how Taste Ireland markets and sells Ireland’s favourite foods to meet untapped and increasingly hungry demand throughout Australia and the South Pacific.”

Industry News

New sorting systems installed for Australia Post Siemens Postal, Parcel & Airport Logistics (SPPAL) has installed six sorting machines at four mail sorting centres for Australia Post.

The Open Mail Handling Systems (OMSs) were installed in Sydney, Melbourne, Brisbane and Perth, where they will be used to sort flats, plasticwrapped magazines and small packages.

They assume the tasks performed for years by sorting machines previously supplied by Siemens.

“We needed to update our existing equipment to handle the large variety of mail coming through our sorting centres, so we selected Siemens’ OMS technology to maximise the volume of product that could be processed through automation,” said Jadd Brammall, Head of Processing, Australia Post.

“The equipment was delivered on time against a very aggressive schedule, and our new OMSs have enabled us to significantly improve our efficiency and provide the best platform for meeting the future needs of the business.”

Michael Reichle, CEO, SPPAL, added: “The OMS is our answer to the demanding requirements our customers have to meet, as it’s capable

Australia Post's new sorting machines can sort up to 50,000 items per hour.

of processing a broader range of mail types and formats than other sorting systems on the market.”

Five of the delivered OMSs are equipped with four input lines and 284 outlets for mail trays

and can each sort up to 50,000 items per hour.

The sixth OMS is fitted with two input lines and 148 outlets and can sort up to 25,000 items per hour. Barcode readers and printers are used in all six systems.

Fremantle Port rail subsidy increased Western Australia’s McGowan Government has implemented financial incentives to reduce truck congestion and get more freight on rail to Fremantle Port.

As committed prior to the last election, the container rail subsidy increased from $30 to $50 per Twenty-foot Equivalent Unit (TEU) from 1 January 2018.

The plan aims to reduce truck traffic on roads around Fremantle Port by encouraging more freight on rail.

The Western Australian Government’s integrated plan for freight and trade includes a target to boost rail mode share to 20 per cent – an increase of approximately five per cent.

The subsidy will be paid for all loaded containers that move between North Quay Rail Terminal (NQRT), Forrestfield and Kwinana, as well as for containers filled with hay received by rail at NQRT for export.

“Increasing the rail share for container haulage is one of several initiatives to improve efficiencies at the Inner Harbour to facilitate trade growth until additional port facilities are viable,” the Government said in a statement. It added that

Fremantle Port's new container rail subsidy aims to reduce truck traffic on surrounding roads by getting more freight on rail.

others include supporting the development of the Westport: Port and Environs Strategy; development of the broader rail supply chain, including intermodal facilities; and upgrading road infrastructure linkages around the inner harbour.

“The rail service plays a significant role in achieving greater efficiency in the container supply

chain as well as improving community amenity and environmental benefits along metropolitan roads that link to Fremantle Port,” said Western Australian Transport Minister Rita Saffioti.

“That is why the McGowan Government has delivered on its election commitment to increase the container rail subsidy to encourage more container movements on the port rail service.” logisticsmagazine.com.au | 9

Industry News

TMHA equips NewCold Melbourne facilities Toyota Material Handling Australia (TMHA) has supplied equipment to new cold storage market entrant, NewCold.

NewCold Melbourne opened its two warehouses in August and September 2017, with 45 leased Toyota and BT forklifts.

Netherlands-based NewCold Advanced Cold Logistics reportedly decided to approach TMHA for its first Australian operations due to its relations with Toyota in Europe.

The 34-metre-high warehouses have a combined 40,800m2 of floor area, storage for over

200,000 pallets, 39 loading docks and operate around the clock.

One is a cold store kept at -23oC, the other a chilled store with two, eight and 11oC environments.

“This makes Toyota our material handling partner of choice, while the comprehensive service offering is unique and cost effective as well,” said Ray Perry, Director – Oceania at NewCold.

“We appreciate that Toyota does not only supply the forklift [equipment] but will also

Luca Quaresima, Site and Implementation Manager, and Shaun Micallef, Site Manager, Newcold, at the new Melbourne facility.

service the equipment as and when we need it.

“Being a logistics and warehouse service provider, Toyota shares common customer values with NewCold. We trust that we will benefit from TMHA’s wealth of knowledge in the industry in Australia to increase our productivity, while staying ahead of our competition.”

Jason Fennell, Corporate Account Manager, TMHA, said local discussions with NewCold began in October 2016 and a decision was made in May 2017.

“We received a request to assist NewCold from our corporate division and worked from there,” he said.

“NewCold uses a variety of suppliers and products in Europe. However, the core business is to be able to pick orders, replenish stock, load and unload required deliveries, and store required long-life stocks on a 24/7 basis.

“This is the company’s first development in Australia, so we are committed to working with them to develop the relationship and ensure we cover all the material-handling requirements, as well as making this process easy for the customer.”

The initial equipment roster for NewCold’s Melbourne facilities includes 21 BT electric pallet jacks, 10 Toyota 8-Series FBE18 threewheel electric forklifts, seven BT RRE140H reach trucks, four Toyota 32-8FG30 internal combustion forklifts, a pair of 32-8FG18 Toyota forklifts, a BT RRE250H reach truck and four battery chargers.

ALC calls for wider focus for NTC telematics review The Australian Logistics Council (ALC) has called for the National Transport Commission (NTC) to consider the benefits of using telematics to improve multiple aspects of heavy vehicle safety, including the control of speeding compliance and advancing land transport market reform, for the review of regulatory telematics the NTC is currently undertaking.

“ALC has a longstanding record of advocating for the mandatory use of telematics to enhance heavy vehicle safety,” said Michael Kilgariff, Managing Director, ALC. “It is pleasing that the NTC has at last agreed to examine matters including industry 10 | Logistics&MaterialsHandling February/March 2018

adoption rates, barriers to adoption and the governance and legislative arrangements surrounding the use of telematics in heavy vehicles.”

Kilgariff noted that it is important that the parameters of the review are sufficiency broad so as not to impede active consideration of the benefits of telematics, both in terms of enhancing road safety and boosting national productivity.

“Industry has consistently told the NTC and other government bodies that mandatory use of telematics is essential to driving efficiency and safety improvements in the heavy vehicle sector,” he added.

“Discussion about making more effective use of telematics has been ongoing for a number of years, and during that time the technology available to industry has become both more reliable and more accessible, as the price of telematics equipment falls.

“ALC’s continuing discussions with industry participants regarding the National Freight and Supply Chain Strategy indicate that industry is continuing to embrace innovative technological solutions.

“This means it is now easier than ever to collect reliable data that can shape the development of a more efficient and safer freight transport network.”

Global News

China launches world’s first electric cargo ship Several reports shared news of China’s launch of the world’s first all-electric cargo ship in Guangzhou in South China’s, Guangdong Province, in November.

News sites ThinkProgress and People’s

Daily reported that Guangzhou Shipyard International’s 70.5-metre ship weighs approximately 600 tonnes, has a capacity of 2,200 tons and is designed for short-haul trips, with its 1,000 lithium batteries offering around 80km of

The world’s largest electric cargo ship has a capacity of 2,200 tons.

travel on a two-hour charge. While loading and unloading at ports, the ship will charge ready for its next trip, news site ChinaNews reported, adding that as such ships do not use fossil fuels, it has zero emissions, including carbon, and sulfur and it could be used as a passenger liner or a working ship.

State-run news site Global Times shared that the cargo ship is being used to transport coal for electricity generation on the Guangdong Province’s Pearl River, and it could in future be used for passenger travel, or “ro-ro” (roll-on/rolloff) voyages.

Chinese environmentalist Wang Yongchen told Global Times: “This kind of ship takes into consideration the harmony between humans and nature and can protect water quality and marine life, and should be copied by other ships sailing on local rivers.”

Brambles recognised as leader in fighting supply-chain deforestation Global supply-chain logistics company Brambles, which operates primarily through the CHEP and IFCO brands, has been awarded a position on the 2017 Forests A List by global environmental disclosure platform CDP1 – formerly know as the Carbon Disclosure Project.

The Forests A List for 2017 is comprised of six global companies leading actions against deforestation globally – alongside Brambles, L’Oreal, SCA, Tetra Pak, Unilever and UPM-Kymmene Corporation were recognised.

Brambles is among three per cent of companies participating in CDP’s forests program to achieve the Forests A List level, which recognises its sustainable sourcing actions for the last reporting year.

“We are incredibly proud of this recognition from CDP,” said Carmelo Alonso Bernaola, Senior Vice President – Global Supply Chain, Brambles.

“Brambles is a sustainable business that is uniquely placed to reduce both wood waste and the use of virgin timber in the world’s supply chains. By sharing and reusing our pooled platforms, our customers have saved 1.4 million trees in the past year alone. This is the circular economy, at a global scale.

“We work in partnership with our suppliers

to promote sustainable forestry in our own operations. One of our 2020 Sustainability Goals is to have 100 per cent of the timber we use come from certified sources. We reported in our 2017 Sustainability Review that we have increased the amount of wood procured from certified sources to 99.1 per cent, so we are very close to achieving our goal.”

Paul Dickinson, Executive Chair, CDP, said,

“Congratulations to the pioneering companies that made it onto the Forests A List. They are leading the way as we move towards a tipping point that will make environmental action mainstream.

Deforestation causes 15 per cent of global greenhouse gas emissions, and 75 per cent of companies say deforestation poses a financial risk to their business. Clearly, this issue is essential for future business resilience.”

Brambles customers saved 1.4 million trees in one year.

logisticsmagazine.com.au | 11

ALC Column

Michael Kilgariff Managing Director Australian Logistics Council

W

ith 2018 now under way in earnest, it is already clear that the early months of 2018 will be critically important for Australia’s freight logistics industry.

With the final report for the Inquiry into National Freight and Supply Chain Priorities due to be handed to the Federal Government in March, the Australian Logistics Council (ALC) will be using the months ahead to ensure governments fully understand what this industry needs to thrive in a challenging economic environment – and adopt policies that allow that to occur.

As the ALC’s industry engagement over the last year has shown, this industry has a wealth of ideas that are practical and achievable when it comes to making Australia’s supply chains more efficient and safer.

The process of consultation around the National Freight and Supply Chain Strategy has been a lengthy one, but what we now need is for governments at all levels to embrace the industry’s ideas and turn them into concrete policy proposals that will unlock the economic and employment growth that we know can be achieved through enhanced supply-chain efficiency.

This will not only require leadership from the national level, but also cooperation and buy-in on the part of state and local governments right across Australia.

Our supply chains do not stop at state borders.

While this is stating the obvious, the reality is that Australia’s federalist model of government often leads to regulatory inefficiencies that adversely impact the efficient operation of our supply chains.

12 | Logistics&MaterialsHandling February/March 2018

INDUSTRY MUST SPEAK CLEARLY IN 2018 An efficient and safe supply chain is an essential precondition for boosting national economic growth and generating further employment opportunities.

Investing in industry priorities This makes it imperative for the Commonwealth to take a more active role in funding and promoting a nationally consistent approach to the regulation of freight movement. It also means that our industry must take every opportunity available to it to encourage the Federal Government to pursue such an outcome.

Just prior to Christmas, the ALC made a submission to the Federal Government regarding investment priorities for the 2018–19 Commonwealth Budget, which will be delivered in May. The Budget submission draws together the industry priorities highlighted in Freight Doesn’t Vote – the ALC’s major submission to the Inquiry informing the development of the National Freight and Supply Chain Strategy.

More importantly, the submission shows how the Government can use its existing powers and capacities to make effective investments that will address those priorities.

During the ALC’s consultations on the contents of the National Freight and Supply Chain Strategy, two overwhelming concerns were consistently raised by industry – the impact of urban encroachment on freight infrastructure, and the increasing challenge of CBD and innerurban freight delivery.

These issues are particularly challenging at the national level, because they are issues ordinarily dealt with by state, territory and local governments.

The ALC’s Budget submission delineates practical ways for the Commonwealth to fund initiatives that will help prevent urban encroachment and improve the efficiency and safety of CBD freight delivery in our rapidly growing cities.

Urban encroachment Industry has made it clear that freight logistics infrastructure assets must be able to operate 24/7 if the efficiency of Australia’s supply chains is to be maximised.

Urban encroachment occurs when planning changes allow land uses to conflict. This occurs most commonly in the logistics industry when residential developments encroach on a fixed logistics asset or freight generation point, such as a port or railway.

The most common political response in these situations is to place curfews or restrictions on the port or railway in order to improve amenity for nearby residences. This is despite the fact that, in almost all occurrences of urban encroachment, residential developments have followed long after the establishment of the port or railway.

CBD and inner-urban freight delivery The growth in CBD traffic congestion – stemming from significant residential and employment growth in inner-city areas – poses significant challenges for freight operators undertaking deliveries in CBD and inner-urban areas. This will increasingly become an issue as consumers ordering goods online, and expecting home delivery, becomes a market norm.

The larger our cities grow, the larger

ALC Column

our freight task gets. Accordingly, the Commonwealth Government has a role in adopting policies to support this growing freight task.

In August 2017, the ALC was pleased to provide evidence to the House of Representatives Standing Committee on Infrastructure, Transport and Cities’ inquiry into the Australian Government’s role in the development of cities.

In our Budget submission, the ALC examines issues such as corridor protection, the separation of freight and passenger vehicles and the trialling of urban consolidation centres as a means for alleviating congestion and facilitating more efficient movement of freight in urban areas.

Incentive payments to reward good practice One of the signature recommendations contained in the submission is for the Federal Government to provide incentive payments to state, territory and local governments as the best way to stop urban encroachment.

Incentive payments could reward jurisdictions that use their planning instruments to ensure the establishment of appropriate buffer zones around critical freight infrastructure, such as ports. This will result in positive outcomes for both the freight logistics industry and residential communities.

Incentive payments could similarly be used to encourage relevant authorities to amend regulations and planning policies that prohibit the delivery of freight after-hours, such as curfews, or make the delivery of freight in CBD and inner-urban environments more difficult,

such as inadequate on-street loading zones.

Very often, such outcomes flow from a lack of adequate experience of freight logistics operations within municipal authorities.

Acting on corridor protection Consistent with the ALC’s position in Freight Doesn’t Vote, our Budget submission urges the Federal Government to embrace a National Transport Corridor Protection Strategy.

This would enable the Federal Government to adequately identify future transport corridors for protection, and also begin to implement policies to protect these corridors.

Ultimately, this will mean more affordable construction costs for nationally significant infrastructure projects in the years ahead, including dedicated Inland Rail connections to the Port of Brisbane and the Port of Melbourne.

A National Corridor Protection Strategy would also identify particular sites to be preserved for the construction of intermodal terminals and warehousing precincts. The construction of such facilities will be critical to addressing road congestion in Australia’s major cities in the years ahead.

Rail and the freight task The ALC’s Budget submission notes that, following on from the commitment to build the Inland Rail in the 2017–18 Commonwealth Budget, it is now time for the Federal Government to fund duplication of the rail line to Port Botany. With the expected increase in container throughput at Port Botany, as well as the benefits of moving more freight onto rail, this rail duplication should be a priority for

the Federal Government, because the economic benefits of the project will be felt well beyond the confines of New South Wales.

The ALC further advocates that freight rail projects, which also deliver substantial benefits to passenger rail, should be eligible for funding through the $10 billion National Rail Program.

Directly, this could include investment in rail lines that carry both passenger and freight rail, such as the Melbourne-Adelaide line and the Sunshine Coast rail line.

Indirectly, it could also permit funding for rail infrastructure to separate passenger and freight rail lines. The Inland Rail project is an example of how a dedicated freight rail line can ease congestion on passenger rail lines, notably in Sydney.

Continuing to press the agenda It will be vitally important for the freight logistics industry to continue pressing these and other critical industry priorities over the next several months, as the Federal Government continues work to finalise the National Freight and Supply Chain Strategy.

ALC Forum 2018, which will be held at Sydney’s Royal Randwick, 6–8 March, will be another vital opportunity for industry leaders to make it clear to politicians and other key decision makers that this Strategy has profound implications for Australia’s economic future.

We won’t get a second chance to get it right – so it is important for all parts of the industry to contribute.

Head to www.austlogistics.com.au to find out more about how to get involved in ALC Forum 2018. logisticsmagazine.com.au | 13

Women in industry

Untapped potential A new series of events organised by Deakin University’s Centre for Supply Chain and Logistics seek to address the dearth of women working in Australia’s logistics sector.

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n the August/September 2017 issue, Logistics & Materials Handling spoke to Dr Hermione Parsons, Director of Deakin University’s Centre for Supply Chain and Logistics (CSCL), about the centre’s efforts to attract women to a career in supply chain and logistics, including the launch of its Women in Supply Chains Initiative – WISCI for short. Six months on, progress on the program – now renamed Wayfinder – has been significant. We sit down with Hermione to find out what Wayfinder will look like, and how the industry plans to reach out to the nation’s women.

Q: How has the vision for Wayfinder developed in recent months?

A: Notably, we renamed the program from WISCI to Wayfinder: Supply Chain Careers for Women. It was important to find a name that clearly defined what the initiative is about. It’s a three-year program focusing on educating the community about career opportunities in the supply chain, and a way for people in the supply chain to connect with new talent. We are consolidating our steering committee, which so far is made up of a great selection of senior industry leaders – group managers, heads of supply chains, directors, chief financial officers.

They are all dedicated to significantly changing the way industry connects with the community, to explain what supply chain and logistics is to the 50 per cent of the population that doesn’t tend to be as closely aligned with this industry career path.

Q: What backing have you secured for the program?

A: Qube has been behind the project since its conception – I have worked closely on Wayfinder over the past two years with

14 | Logistics&MaterialsHandling February/March 2018

Belinda Flynn, General Manager – Health, Safety and Environment at Qube. Our foundation sponsors include major logistics operators such as the Australian Rail Track Corporation, Toll Group, Linx Cargo Care Group, Lion, Woolworths, DP World Australia, Coca-Cola Amatil, Viva Energy Australia, Nestle and Victoria International Container Terminal.

Q: Once the steering committee has been decided, and sponsors secured, what’s the next step?

A: Next, we build a dedicated team that will help us develop a series of industry-meetscommunity luncheons across the country.

We will invite the community – specifically, those who influence the decisions that young people make in career and education – as our guests to a luncheon at which we will explain the breadth of career opportunities that exist within the supply chain sectors.

I piloted the ‘Strongest Link’ luncheon a few years ago, which taught me a lot. It was easy to get industry and government backing – all tables were sponsored within two weeks.

The tricky bit was bringing the community in – the aim for Wayfinder is to build a bridge with those that influence the decisions of young women.

We held the pilot luncheon at Flemington

Women in industry

It will be held in Geelong – we chose to launch there because we think it’s a great place to look for new talent that could make a real difference in the future. We have also been fortunate to attract Deakin University Vice Chancellor Jane den Hollander AO as the Wayfinder patron, which we are very excited about.

Dr Hermione Parsons, Director of Deakin University’s Centre for Supply Chain and Logistics, winner of ‘Personality of the Year’ at the 2017 Australian Freight Industry Awards,

Racecourse in Melbourne, decorating The Peak – a room found on top of the Grandstand – with flowers and finger food. We wanted to make it welcoming and unintimidating.

At the luncheon, three speakers shared their knowledge and experience in the supply chain and logistics space. I shared first, explaining what the industry is, and how important it is to daily life. I shared case studies, including the supply chain that gets Paspaley pearls through to shops in Collins Street, and prawns to your plate.

Next, we heard from Laura Anderson – then-Chairman of the L’Oreal fashion festival, a former partner in KPMG in the supply chain and on the Board of the Grand Prix. Laura spoke about how every make-up, fashion, jewellery and IT company has whole divisions full of supply chain and logistics specialists.

That really made the attendees think.

The third speaker was from the Australian Defence Force. She turned up in her military uniform and showed PowerPoint slides of navy vessels, and helicopters landing. She said, “I’ve been on that vessel, because I’m in logistics, I’ve been in that helicopter, because I’m in logistics.” It was an incredibly exciting presentation.

Finally, two women respresenting the sponsors led discussions on each table about the scope of the sector, and how to get involved.

The first luncheon was hugely successful, and it helped us work out what we had to do to get traction from the event. This time we’ll be working hard to engage with the attendees on an ongoing basis.

We’ve now set the date and location for the first luncheon – 8 March, International Women’s Day.

Q: What is the long-term vision for the Wayfinder program?

A: We want to get the word out across the community, to let young people know about the possibilities opened up to them by pursuing a career in supply chain and logistics. We’ll be doing this by sharing information alongside the luncheons through various mediums, with schools, universities, and other methods aimed at identifying women – and men – seeking a new career path. As a bonus, the materials we will distribute will also help the industry to define itself, giving its people the tools to refer family and friends to the industry.

We will also be using Deakin University as a case study to see how we can link students into businesses working with the Wayfinder program, to connect supply and demand.

Once we’ve learnt from that pilot, we’ll be looking at rolling the program out across partner universities across the country.

Deakin University’s Wayfinder program seeks to give the logistics industry the tools to define itself and spread the word about careers in the sector.

logisticsmagazine.com.au | 15

Women in industry

Championing change One Australian logistics professional has launched her own networking events to encourage, mentor and champion women working in the industry.

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fter noticing that men were overrepresented at networking events she was attending in Brisbane, Queensland, logistics professional Melissa McDonald decided to create a unique space for women in the industry to meet, share knowledge and gain confidence.

“Nowadays, networking is for everyone, not just salespeople,” she says. “Everyone needs to build a personal brand. At a lot of networking events, women are the minority so I wanted to create one where they could feel comfortable, share their knowledge and experience and improve their networking skills. I love this industry and wanted to give back.”

The events, dubbed ‘Women in Logistics (BNE), have been supported by Melissa’s employer – procurement company Lasso, and logistics company Qube. The women-only sessions feature cocktails, snacks, industry speakers and networking practice.

“Networking is a necessary and long-term commitment,” she says. “Knowing how to network effectively and to push yourself outside your comfort zone can be very rewarding. Networking is the first step to embarking on a trusting relationship with someone new.”

In 2018, Melissa intends to hold Women in Logistics (BNE) every quarter, bringing together professionals from freight forwarding, airlines, shipping lines, warehousing, trucking, government, defence, import/export, procurement – across the supply chain.

“I put a lot of thought, time and effort into the events, and it’s important to me that attendees enjoy themselves and leave feeling more empowered,” she says.

“I get a lot of great feedback from women who feel more confident after attending, having connected with other women who have similar stories – both good and bad. It’s a comfort to them to know that other women have these experiences – they unite us.”

Striking the balance Melissa notes that while companies are increasingly recognising gender imbalance, the industry as a whole still has a long way to go. “The industry needs to be more inclusive – the ‘boys club’ mentality still very much exists,” she says.

“As a result, there is a massive disconnect between the job opportunities secured by men and women, 16 | Logistics&MaterialsHandling February/March 2018

and other issues like the pay gap.”

Getting women and men on an equal footing will require a concerted effort by both genders, she notes. “Women need to be more forward and vocal,” she says. “Sometimes you just need to tell your managers – whether men or women – what you want, how you want to progress – they’re not mind readers.

“Be open and honest and they may be able to help you get to where you want to go.”

Alongside this, she recommends that women make an effort to network effectively and often.

“Join industry networking events and local business networking groups to build your brand – and make time to go,” she says.

Men can help propel their female colleagues by inspiring confidence in them, Melissa adds.

“Talk to your female employees, colleagues and managers about personal development or career advancement that they would like to undertake, and help them form a plan to achieve it,” she says, though she notes that those in leadership positions are crucial to effecting change.

“Management is hugely important,” says Melissa.

“They set the tone for the company, so if male and female managers lead by example it will happen organically.”

Finding inspiration Through Women in Logistics (BNE), Melissa has started to mentor younger, professional women. “I have not really had a mentor per se, though there have been male and female individuals that have supported, advised and inspired me along the

way,” she says. Her career in logistics has been driven by passion, and she is keen to help clear the way for those still finding their own path in the industry. “I fell into logistics at age 18, working a job part time while studying at university,” says Melissa. “I discovered I loved the industry – it opened my eyes to all of the moving pieces in logistics. I then went on to study and gain the theoretical knowledge to back up my practical knowledge.

“During my career, I have had to learn a lot of things the hard way – on my own. I think that mentors are important and valuable to career progression, however I think they are hard to find. I have not heard of many people within logistics having a mentor, which is why I offer my help to the women that attend the networking events.”

Changing perceptions Melissa hopes that her Women in Industry (BNE) networking events will inspire others with the means to nurture young female talent in maledominated industries, and that – ultimately – small actions such as providing networking opportunities and prompting meaningful discussions will help lead to valuable change.

“I want to help change the way women are seen, managed and respected, by themselves, their colleagues and industry peers,” says Melissa. “The way this is going to happen is by getting more women in higher management positions, with the power to effect change – and to get to that point we need to ignite those ambitions today.”

The Women in Logistics (BNE) events provide a platform for experience sharing and networking.

Women in industry

Updating perceptions Women in Industry Excellence in Road Transport award winner, transport industry veteran Pam McMillan, shares her thoughts on recognising hard work and getting more women involved.

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am McMillan won the Excellence in Road Transport accolade at the 2017 Women in Industry awards, for her relentless efforts to make the transport industry a better place.

Pam has been involved in road transport for most of her life, was the Transport Women representative on the Council of the Australian Trucking Association for seven years and was invited to join the board of Transport Women Australia in 2000. The industry veteran retired in late 2017, ending a dedicated, rich and successful career.

Q. What first drew you to the commercial road transport industry?

A. I have been in the transport industry all my life, since going out on trips as a youngster with my stepdad, who was a truckie. My husband Doug

also has a transport background and was working in the industry when I met him, and he drove and did mechanical work for various transport companies until we bought our first truck in 1974.

Q. What is your role in the industry?

A. I do the administration for our own transport business D&P Haulage, I set up accreditation systems for small operators and I also do the administration for the Australian Truck Drivers Memorial at Tarcutta.

Q. What has been the highlight of your career?

A. It’s hard to choose one. Winning the National Trucking Industry Woman of the Year in 1999, the Natroad Ted Pickering Award for Outstanding Contribution to The Road Freight Industry in 2013 together with Doug, our induction onto the Wall of Fame at the Road Transport Hall of Fame at Alice Springs in 2005 and this year the Women in Industry Award. They’re all really special.

topics, whether it is careers for women, road safety messages or new laws.

Q. How can the transport industry be better promoted as a career of choice for women?

A. We need to promote opportunities for women at career days and trade displays, and government has a role to play in incentivising companies to employ and train women. Recognising that women often are raising a family and giving them flexibility to work at times to suit and or job sharing may assist.

Transport Women has been working with the Girl Guide Association to incorporate career and safety messages into their learning guides. The girls will be able to work towards a ‘transport’ badge, which will hopefully interest them with transport industry options at an impressionable age.

Q. What is the best thing about the transport industry?

A. For me, it’s the people we have met and formed firm friendships with over many years. It can be expensive to attend the conferences, seminars and events but it always feels like coming home.

Q. What do you think could be improved?

A. People’s perception of what roles women play in this industry and their importance – not just in employment but in all aspects, such as support organisations like Transport Women Australia.

Over the last few years, we have all heard about diversity and promoting careers for women and the quotas of women on boards. These are important issues, but we find it difficult to find the support the organisation requires.

Q. What did winning the Women in Industry Award mean to you?

A. I am still coming to terms with the enormity of it. I am in awe of the calibre of women that were in attendance, finalists and the winners of their respective categories. To be recognised as a worthy person by your peers is just so special.

According to Pam McMillan, long-time road transport industry champion, flexibility is key to retaining female talent.

Q. What impact can events like these have on the industry?

A. The industry could recognise these events and utilise the winners as spokespeople for various

FAST FACT The Women in Industry awards recognise the women who are driving change within the mining, engineering, manufacturing, process control industries and – in doing so – breaking down barriers and creating new possibilities for the next generation. In 2017, the awards were accompanied for the first time by a conference, which provided a forum for creating action plans to tackle gender issues.

logisticsmagazine.com.au | 17

Future talent

Managing disruption The working world the millennial generation will inherit will be competitive, fast moving and long.

Michael Byrne, Managing Director of Toll Group, explains that today’s leaders are obligated to equip their successors with the skills needed to survive, thrive and drive productivity.

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f you don’t change, you won’t thrive and you won’t survive,” said Michael Byrne, Managing Director of transport and logistics company Toll Group at the ‘Developing the millennial generation; The future of leadership’ event held in Melbourne in late 2018. “Darwinism is alive and well – and will continue to be so at an accelerated pace because technology and the world’s population will demand so.”

Byrne noted that the millennial generation – commonly considered to include those born between 1985 and 2000 – would be key for businesses looking to traverse the challenging times ahead. “Millennials in the workplace – we need them now more than ever,” he said. “They’re more technologically savvy, they’re better educated, they’re globally aware, and have a great luxury of immediate thinking.” The generation’s propensity for trying and testing new ways of working would set the scene for progress, he added, once the country’s senior leaders make way for the new blood.

“They change and move onto new ideas more quickly than we did, which is fantastic,” he said.

“We hold on too long in my generation, and try to keep powering away on a lost cause.”

Shared aspirations According to Byrne, the furore over differences in working styles between generations is overplayed, and counterproductive. “My 25 years in Asia and North America have taught me something extremely important,” he said. “We break people up into components, and say they’re millennials, X Generation, that ethnicity, that religion. What I have learnt is – apart from a few outliers at the extremes – everyone is the same, and everyone wants the same things. We want a little bit better life than our parents, we want a little bit better life for our children, we want to eat a little bit better food, we want to drink a little bit better – we want a nice and safer life. We shouldn’t forget that.”

Recognising this common goal, he explained, will help ease the apprehension many senior leaders have about retiring and passing the gamut in the coming years.

Byrne noted that his generation has a tendency to reject suggested changes to business style as a reflex, without considering the potential merits.

“Management think that they can live in their 18 | Logistics&MaterialsHandling Febuary/March 2018

Micheal Byrne, Managing Director, Toll Group, told assembled industry stalwarts to stop overplaying generational differences.

office, make a decision in their boardroom, and it’s a really great decision, but unless you get out there and press the flesh, kiss babies and look someone in the eye every day, [it won’t be effective],” he said. “Management are too driven by being in the boardroom and going to meetings.”

He called for leaders to acknowledge that requests by millennials are often reasonable – and desired by all generations, yet denied to avoid veering from the status quo. “Do millennials in the workplace have a different style? I don’t think so,” he said, adding that workplaces should be promoting regular, frank human contact – rather than email – between seniors and juniors, flexible workplaces and learning and development.

“They’re not different, they’re the same,” he said.

“We overplay the differences of what we want and need. They want the same things you do. But we’re just saying we’re not going to give it to them – why? You’ll disempower your own workforce.”

Passing the torch “How are we going to grow the next leaders of our businesses?” asked Byrne. “Where are those leaders going to come from? They’re going to come from millennials. How do you do that? Graduate programs, development programs, secondee programs – education.”

He noted that current leaders must recognise that education is one of the most important things they can prioritise. “We need to be investing in our young people – we say we can’t do that, or that we cant afford to – you can’t afford not to,” said Byrne. “You can’t afford not to educate, train and

GENERATION WHAT? Broadly speaking, ‘baby boomers’ were born in the years following the Second World War – the mid-1940s up until the mid-1960s. Baby boomers were succeeded by Generation Xers – those born from the mid-1960s until the early 1980s. Generation Yers, also known as the millennial generation, were born between the early 1980s and the mid1990s – and are often described as the generation that grew up before ubiquitous use of smartphone technology and the Internet, while also spending a significant portion of their upbringing familiarising themselves with technology. Generation Zers, born from the mid-1990s onwards, have grown up with the Internet and fast, affordable technology.

Future talent PEOPLE, NOT ASSETS “Our people are not an asset,” said Michael Byrne, Managing Director, Toll Group. “I find it personally offensive when anyone says our people are assets.

An asset is a cold piece of steel – an inanimate object that has no real value unless people are using it.

“Our people are the great pool of wellbeing in a business that I still need to find a way to unleash.”

Referring to the redundancies announced since he took over the role in late 2016, Byrne reiterated the need for respect and empathy in all dealings with employees.

“The people here have had a tough time – we shouldn’t hide from the fact I’m currently letting go 2,200 people,” he said.

“We still need to do that with dignity, style and compassion. It’s a very tough place for us to be, and our people are doing a fantastic job trying to manage that and re-sow our culture.”

develop. That’s our job, to create leaders of the future. We need to think about how we can help the millennial generation deliver its potential.”

He noted that the millennial generation needs to be taught how to lead, as each generation before has learnt. “What we have to teach millennials, like we’ve had to teach anyone else, is full leadership comes with no entitlement first – no one has a right to leadership,” said Byrne. “It comes with obligation first – commitment to others, situational awareness, self awareness, and an aspiration to be better every day.”

While the millennial generation is often cited as being self assured, Byrne noted that in his experience the generation lacks some of the “great social skills” his generation boasted. “I think they will be fantastic and they will be better leaders than me, but I hate the lack of eye contact – when they’re looking down even when they don’t have a computer or a smartphone in their hands,” he said.

“We have an obligation to teach them some of our old-school values – looking a man or woman in the face, a good, strong handshake, eye contact.

“Most communication is body language and they haven’t learnt some of those skills yet. It’s our job to teach them, to make them better than we were.”

citing increasing demand for immediate consumer gratification, rapidly developing Asian populations and economies, and longer working lives.

“My main challenge to millennials is to think that the world is your oyster, but you are competing against [7.5 billion other people],” he said. “Millennials will need to evolve – they may think that they are going to by nature have a defining position, yes – but they will fall off that perch quickly, like every other generation, unless they understand their obligation for change and development.”

Millennials are in at the extreme end of ‘immediacy’, Byrne added, and consumer expectations for delivery and availability of items will get more sophisticated. Growing global populations will mean more competition for jobs, and business alongside new opportunities, he explained. “The whole world is disruptive,” he said, adding that this will impact formal education.

“Millennials will have to go back to school every decade, you’re going to have to compete,” he said.

“This is your reality – you are disruptive to the economy as long as you realise you also need to be more disrupted.”

Byrne himself returned to school in his 20s, 30s and 40s, to gain the skills necessary to ascend to senior positions in Linfox and Toll Group.

“I got told, ‘if you want the next job, go back to school again or you don’t get it,’” he said. “[As a millennial], to think that you’re not going to have to go back to school, or you’re not going to have a 50- or 60-hour work life, is being in denial.”

Laying strong foundations “Millennials will make up 75 per cent of the global workforce in 2025 – eight years away,” said Byrne. “If you’re not designing your workplace, product or service around that thinking, you’re failing your business.

INFORMATION IS NOT POWER “Information is not power,” said Michael Byrne, Managing Director, Toll Group.

“Information is powerful only when disseminated. Too many old-style management views dictate that we keep hoarding information, that we don’t share anything.

“Millennials won’t accept that – they can get on the Internet and work it all out in 20 seconds flat anyway. Why not embrace them and give them everything? Reach out to them.”

“In the next decade, the decisions will start to be made by millennials. We need to get with the program and think about that and how we shape our businesses. They are going to have the money, they are going to have the votes, they are going to shape our communities.”

In the interim, businesses must continue to invest in education, doubling down each year.

“Otherwise the pace of the economy and the world economy and GDP (gross domestic product) will defeat you,” he said. “You can’t hold back the tide. Millennials understand this – you’ve got to love all your people but this is the group in the next 10 years you need to double down on.”

Over the coming years, senior business leaders and millennials will need to invest time and effort into developing rugged foundations for the future of the nation’s – and the world’s – companies, Byrne noted.

“If you don’t think you are in a global business, [and that] millennials are going to be the most powerful group in that workforce, you’re in denial,” he said. “But what a great opportunity – the world is an exciting place.”

A perfect storm Converging disruptive forces will mean the business environment millennials will find themselves working in will be very different to that known by the ‘baby boomers’ and Generation X (see breakout box), Byrne shared,

Michael Byrne, Managing Director of Toll Group, (centre) stands alongside the transport and logistics company’s latest graduate talent.

logisticsmagazine.com.au | 19

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Rail freight

Renewed focus Australia’s rail freight industry has been in the spotlight in recent months, with the Inland Rail project on track to bring back the mode’s visibility – and, importantly, its viability. AusRAIL PLUS 2017 looked to champion the mode’s successes, and potential.

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ll governments recognise the importance and benefits of rail to Australia,” said Danny Broad – CEO of the Australasian Railway Association (ARA), as he opened the ARA’s annual event, AusRAIL PLUS 2017, in Brisbane. “Investment in rail made in the national interest will enhance rail’s contribution to the economy through greater efficiency in both public transport and supply chain networks – all Australians will be the beneficiaries.”

With forecast investment in both new rolling stock – or rail vehicles – and rail infrastructure of $100 billion over the next 15 years, and Inland Rail and a national rail industry program securing $20 million in funding in the FY17 Federal Budget, “rail certainly is the place to be,” he noted.

“An important era lies ahead of us – it is a pivotal time, and the implementation of the

Carbon emissions are 40 per cent higher on road than rail per kilometre.

Source: Deloitte’s Value of Rail report, 2017.

22 | Logistics&MaterialsHandling February/March 2018

national rail industry plan is essential.”

Darren Chester, then-Minister for Infrastructure and Transport, echoed Broad’s comments, noting that the federal backing for the Inland Rail project and other key rail infrastructure is a clear vote of confidence in the future of the industry. “[This is] the most exciting time in the past 100 years to be in involved in rail,” said Chester.

“Australia needs Inland Rail – without it, we won’t be able to cope with a projected doubling of our nation’s freight task.

“Currently, about 25 per cent of Melbourne-toBrisbane freight is carried on rail, and around 75 per cent is carried on road. This project will help to even the ledger.”

Seeing the value The ARA commissioned consultancy Deloitte to produce a report looking at future strains on

One freight train can get 110 trucks off the road.

passenger and freight rail networks, rail safety, rail’s benefits over road, and environmental considerations for modal choices. Broad released the Value of Rail report at the event, noting that it highlights the significant role the rail industry will play in enabling Australia to cope with future challenges.

“Australia’s population is increasing at a rate of 370,000 people per year,” he said. “By 2060, both Sydney and Melbourne populations will have grown by approximately three million people.

“Freight is likely to grow with gross domestic product (GDP) rather than the population growth – with a potential 88 per cent increase in kilometres travelled by 2050, and an increase in vehicle stocks of about 2.5 million trucks and light commercial vehicles.

“To manage these challenges, Australia will have to develop its multimodal transport systems, with light rail and heavy rail at its spine.”

Road freight crashes cost 14 times more per tonnekilometre, compared to rail freight crashes.

Rail freight The report found that Australia’s population will double by 2075, reaching almost 45 million people. It notes that rail currently contributes approximately $26 billion to the Australian economy each year, while offering lower emissions and safety and congestion benefits compared to other transport modes.

“Significant investments are being made into Australia’s rail infrastructure,” the report continues. “In some sense, these investments are making up for a prolonged period of underinvestment.”

Dealing with disruption Change was a central topic at the conference – in particular, uncertainty about the pace and extent of change to work, technology and population.

As Craig Rispin, Business Futurist and Technology Guru at The Future Trends Group, explained, the ability to obtain and analyse data will be key in the years ahead.

“Data is the new oil, and artificial intelligence (AI) is the new oil,” he said – since the ability to collect data means nothing without the ability to analyse it.

By 2028, he shared, the world will be far removed from the one we live in today. Fifty per cent of jobs will have been replaced

by machinery, the majority of cars will be driverless, and six in ten people will be living in cities – with one in three aged over 100.

The significance, he said, is businesses cannot expect to continue to keep working the same way while the world changes around them.

He pointed to the rise of the start-up culture as one risk to established companies, with organisations such as Airbnb and Uber enabling individuals to do what entire companies used to do. While competing with new, lean rail start-ups, the industry will also have to remain mindful of advances in emissionreduction technology in trucks, allowing them to travel from Melbourne to Sydney in one charge, recharge and head back again. “Be part of the future,” said Rispin. “Or try to avoid the inevitable.”

Port partnership For ports to handle the incoming onslaught of freight, they will need to increase their reliance on rail, shared Jonathan Lafforgue, General Manager – Operations and Environment at NSW Ports.

“The 2016–2017 ACCC (Australian Competition and Consumer Commission) Stevedore Monitoring Report came out [in early November 2017], stating that Port Botany is now

Australia’s largest container stevedoring port,” said Lafforgue. “While we welcome that news, we’re more excited about the potential capacity we’ve still got in our port to grow – right now, we’re handling a little under 2.5 million TEU (twenty-foot equivalent units) per annum. The port itself has the capacity to grow to 7.5–8 million TEU– meaning we have enough key lines, berths, and land behind that to facilitate that volume of freight.”

He noted that the only way NSW Ports will be able to put that much freight across the key lines of ships is by getting 40 per cent of containers on rail.

“Right now, we’re proud of the fact that it’s about 20 per cent – but we need to double that to reach that next-level capacity.”

The majority of Port Botany’s freight is regional rail at present, and 80 per cent is delivered within a 40km radius of the Port.

“To get to that next step, we’ll need to start targeting the import freight, rather than the export freight – and to do that, we’ll need the intermodals,” said Lafforgue.

One voice According to Priscilla Radice – Principal and Australasian Business Leader at professional consultancy Arup, the privatisation of

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Rail freight Australia’s ports has had an unexpected effect on the conversation around freight in the country.

“With the privatisation of the ports, I don’t think anyone predicted how strong a voice [ports would] have,” said Radice, adding that their input in creating a strong supply chain is key, since ports are mode agnostic.

Now, privatised ports are contributing to the conversation.

Radice noted that oppositional conversation about freight in unhelpful, especially in the government space.

“Having worked alongside governments, looking at light rail, passenger rail, road and inner-city shaping policies, I see that the oppositional speak of freight – road versus rail, freight versus commuter – I don’t think [it] helps,” she said. “Governments are shifting more and more towards city shaping, understanding their current ecosystem – they need the freight industry to provide a coordinated ‘one’ voice that is very clear […] so the supply chain does not happen in isolation.”

Radice advocated a holistic and united approach to infrastructure planning, noting

THE NATIONAL RAIL PLAN The National Rail Industry Plan for the Benefit of Australia is currently being developed by the Australasian Railway Association and rail industry members.

Its purpose is to identify shared priorities across the rail industry; highlight the importance of the mode to Australia’s infrastructure development, urban planning and freight movements; promote harmonised standards; and foster growth and innovation within the industry.

that rail freight will always have to jostle for its slice of the pie after passenger rail.

“NSW Ports, your target of 40 per cent freight on rail is potentially in direct conflict with the densification of population along freight lines,” she said. “Look at what the freight piece is in the wider context for cities – you’ll never beat the commuter push. Governments need to know that the population is going to double, by getting smarter around all the technology freight will be what that looks like in terms of its infrastructure. You can’t continue to be oppositional.”

The rail freight industry has been handed an opportunity to prove itself viable as an alternative to road transport, though the years ahead will not be free of challenges. Key will be industry development focused on remaining competitive, speakers noted, whether that be through the development of intermodal freight terminals, sophisticated route planning and tracking technology, autonomous capabilities or otherwise.

With the nation’s rail experts already strategising for the various unknowns, the rail industry could be on the right track.

Danny Broad, CEO of the Australasian Railway Association, noted that investment in light and heavy rail wil be crucial if Australia is to cope with forecasted increases in freight volumes and urban populations.

logisticsmagazine.com.au | 25

MEGATRANS2018

Supply chain showcase New multimodal trade show MEGATRANS2018 is poised to champion the individuals, organisations and products that bolster Australia’s supply chain, with myriad businesses set to exhibit their wares.

A

s megatrends such as globalisation, urbanisation, demographic change, volatile buying behaviour and resource scarcity converge, the very idea of logistics as we know it is evolving Multimodal trade show MEGATRANS2018 will bring together those who plan, implement and control the efficient forward flow and

LOGISTICS & MATERIALS HANDLING/ WAREHOUSING & STORAGE Materials handling equipment supplier Toyota Material Handling will be championing automation at the show, putting its current suite of products on display alongside some new additions set to hit the market soon.

“People have always associated Toyota Material Handling as a forklift company,” says Tony Raggio, National Sales & Product Manager, Toyota Material Handling Australia. “We would use MEGATRANS2018 to show customers our new automation products for 2018, including our Autopilot driverless forklifts.

“As the show is diverse, it will appeal to not only potential forklift customers, but also customers considering automation as part of their future business.”

2018 marks 50 years since the company sold its first forklift in Australia, and as such it is planning to host special celebrations.

Forklift company Adaptalift will bring its Combilift range of multidirectional materials-handling units to MEGATRANS2018.

“Trade shows are valuable to Adaptalift as they provide an opportunity to talk openly regarding the equipment and really understand the concept behind it,” says Paul Hinz, Marketing Coordinator, Adaptalift. “It’s also a bonus that we can wander around and catch up on industry trends and see what others in the space are doing.”

26 | Logistics&MaterialsHandling February/March 2018

storage of goods and services between the point of original and the point of consumption for the first time.

The event will provide opportunities for cross-industry learning, networking, collaboration and planning.

The Melbourne Convention and Exhibition Centre’s entire 30,000m2 floor space will

house four main sections – Logistics & Materials Handling/Warehousing & Storage; Road Transport; Air, Sea & Rail; and Infrastructure – and there will be an emphasis on technology throughout.

Here’s a sneak peek at what you can expect to see at Australia’s largest and most exciting logistics show.

ROAD TRANSPORT For truck manufacturer Isuzu Australia, a Platinum Sponsor of MEGATRANS2018, the event will be an opportunity to update the industry on the company’s latest technological advances – in particular, its progress with connected vehicles.

“The discussion and hype surrounding autonomous, or driverless, vehicles and technologies continue to build both overseas and here in Australia,” says Phil Taylor, Director and Chief Operations Officer, Isuzu Australia.

“Disruptive technologies appear to be becoming more prevalent with each new year, fundamentally changing the way the market will look at the road transport industry over the next few decades.”

Trailer manufacturer Barker Trailers will celebrate its 44th year in business at the exhibition by unveiling new models alongside the company’s ‘tried-andtrue’ designs.

“MEGATRANS2018 offers Barker Trailers the opportunity to showcase the latest freight solutions in multimodal and bulk haulage logistics,” says Rod Cunningham, General Manager – Sales and Marketing, Barker Trailers. “We get to rub shoulders with our long list of loyal clients as well as discuss the changing needs of the market with logistics professionals from both Australia and abroad.”

AIR, SEA & RAIL In the Air, Sea & Rail zone of the exhibition, 1-Stop Connections will be championing ICT solutions for the freight community. Since 2002, the company has been developing personalised solutions for the wider sea-freight supply-chain community, including shipping lines, freight forwarders, customs brokers, thirdparty logistics operators (3PLs), container depots, road and rail operators, importers and exporters.

1-Stop Connections specialises in vessel and container tracking software, regulatory document lodgement and vehicle booking systems, accessible online or through an app.

SCF, one of Australia’s largest container providers, will also be exhibiting at MEGATRANS2018. SCF specialises in new and used container hire, sales and design, and supplies the Australian transport, resources, construction, defence and chemical storage industries.

The company manages more than 13,000 containers throughout Australia, and operates a depot network spanning Australia’s major cities including Adelaide, Brisbane, Darwin, Melbourne, Karratha, Perth and Sydney.

MEGATRANS2018

TECHNOLOGY Transport Certification Australia (TCA), the nation’s governing body for the telematics community – will host a unique ‘Telematics Hub’ on the exhibition floor of MEGATRANS2018.

With a focus on increasing productivity through intelligent multimodal transport solutions, TCA’s Telematics Hub will showcase world-leading technology from telematics specialists such as Teletrac Navman and Tramanco, and demonstrate how Australia leads the way.

“Through the development of new business models and markets, we can accelerate progress, promote innovation and best practice, and improve productivity outcomes,” said Chris Koniditsiotis, CEO of TCA – adding that the body is “proud to support MEGATRANS2018.”

INFRASTRUCTURE MEGATRANS2018’s Infrastructure zone will feature infrastructure construction, roadworks and aggregate supplier Fulton Hogan. The company coordinates large infrastructure projects across several key industries, including road, rail and air transport; land development; mining; and civil construction, and it will use the event to engage further with the wider supply chain.

Concrete and infrastructure provider Gough Industrial Solutions will represent its global partners Sany and Simem at the show, showcasing its solutions designed for the transport and infrastructure sectors.

EVENTS Victorian Government Ministerial Breakfast MEGATRANS2018 will start with a bang, with a large-scale Ministerial Breakfast marking the beginning of the event, organised in partnership with the Victorian Government.

The breakfast will feature leaders from the transport, logistics, infrastructure and materials handling industries, as well as government officials and key decision makers representing the national and international supply chain.

Panellists include representatives from the Victorian Transport Association (VTA), the Port of Melbourne and the Victorian Government.

The breakfast will provide a unique opportunity to learn about the Government’s future strategies first-hand and be part of cross-sector movement to tackle the challenges ahead.

ALC Technology Forum The Australian Logistics Council’s (ALC) inaugural Technology Forum will take place on 10 May at MEGATRANS2018.

“Technology is a major component of the logistics supply chain and will play a dominant role in the exhibitions at MEGATRANS2018,” said Michael Kilgariff, Managing Director, ALC. “The ALC operates a number of events each year and technology has been an increasing focus. It made sense to have a dedicated forum focused purely around this.

“The Technology Forum will align well with the technology theme and ensure that those who attend the integrated event can maximise their time and investment.”

ARTSA Global Leaders’ Summit The Australian Road Transport Suppliers Association (ARTSA) will bring domestic and international logistics leaders together for its Global Leaders’ Summit at MEGATRANS2018.

The Global Leaders’ Summit will explore ‘global disruption’, and how supply chains can thrive in the age of Industry 4.0, the Internet of Things and the like.

The event will cover disruption and its relevance within the global marketplace, and provide a platform for solution providers and heavy-fleet operators to discuss disruptive trends in the market. These include automation and autonomous vehicles, company and equipment ownership, road pricing, environmental regulations, propulsion systems and human resources.

Global Shippers Forum MEGATRANS2018 will host the Global Shippers Forum (GSF) conference and AGM, held for the first time in Australasia.

The GSF represents the interests of major shippers in Europe, the Americas, Asia and the Pacific. The Australian Peak Shippers Association (APSA), the peak body for Australia’s containerised exporters, successfully bid for the GSF2018 to be held in Melbourne – with assistance from the Victorian Government – and will host GSF2018 in coordination with the International Cargo Handling Coordination Association, the Freight Trade Alliance and MEGATRANS2018.

“Melbourne is home to Australia’s busiest container port and a lot of freight operators and forwarders,” says Paul Zalai, Director and Founder at the FTA, and Secretariat for APSA. “We’re hosting a number of tours as part of the event, including Australia’s newest automated container terminal at Webb Dock, which will be a great experience.

“It’s quite unique to have transport operators, freight forwarders, customs officials, cargo owners and policy makers, all in the one room discussing logistics and trade issues.”

Mercury Awards The ninth annual Logistics & Materials Handling Mercury Awards will be the official awards program of MEGATRANS2018. The Awards recognise the outstanding achievements of companies and individuals across the logistics, supply chain and materials handling sectors.

Sponsors include the Victorian Government, the Port of Melbourne and Sick Australia.

Head to www.mercuryawards.com.au to submit your nomination and enquire about sponsorship opportunities.

logisticsmagazine.com.au | 27

Intermodal

Australia’s new freight capital?

Uniquely positioned to support the movement of rail freight between the east, west and south of Australia – and soon, with Inland Rail, north too – Parkes in New South Wales has set its sights on becoming the hub of choice for the country’s logistics operators.

F

or a regional town 350km inland from Sydney in New South Wales, Parkes has done a remarkable job of putting itself on the map. The town, named for Australia’s ‘Father of Federation’, Sir Henry Parkes, hosts ‘the Dish’ – an iconic radio telescope, and a hugely popular annual Elvis festival. Its ‘next big thing’ is to become the keystone in the country’s freight logistics network.

On the verge of something big Parkes Shire Council has long recognised the strategic advantage that Parkes’ location at the crossroads of major road and rail freight routes provides logistics operators. “The Council has been mindful of preserving corridors for future development,” explains Anna Wyllie, Economic and Business Development Manager of Parkes Shire Council. “Over 10 years ago, we set aside land for the Parkes National Logistics Hub, meaning we have very good buffer zones in place with no urban encroachment.

“We have been preparing for opening our doors to investment for a very long time, and have looked very strategically at how we plan.”

Following the FY17 Federal Budget allocation of $8.4 billion for the Inland Rail project, it was announced that construction will begin at Parkes in 2018, for the Parkes-to-Narromine link.

“The Melbourne-to-Brisbane Inland Rail will intersect with the east-west line at one place, Parkes,” says Anna. “Can it get any more central than that?”

Location, location, location Parkes Shire Council recently created a cheeky social media pitch to Amazon that attracted close to one million views and highlighted the fact that 80 per cent of Australia can be reached by road from the town, though Anna notes that its intermodal capabilities set it apart.

“Parkes is in an amazing position,” says Anna.

“At the moment, rail can go east, west and south, and when the Inland Rail comes, you’ll be able to go north from Parkes, too – this means that there will be access to all major ports. We have great road train and B-double access, and are right on the Newell Highway – in fact, New South Wales Roads and Maritime Services is looking at doing a bypass of the Newell Highway at Parkes. We also have a large regional airport with three passenger flights to Sydney a day, and the capability for air freight.”

Anna shares that the town is excited to add ‘rail capital’ to its identity. “The first section of the Inland Rail, between Parkes and Narromine, will be the catalyst of change for the way in which freight moves in New South Wales, Queensland, Victoria – the

whole of Australia,” she says. “We’re a really proactive council – we don’t claim to be experts in transport and logistics, but we’re really good facilitators. Parkes offers some fantastic opportunities for companies looking for efficient, low-cost logistics solutions.”

In good company Several major logistics operators have already made Parkes home, including third-party logistics (3PL) company Linfox and interstate road and rail transport company SCT Logistics, which has run its intermodal terminal in Parkes for over a decade. “SCT moves merchandise from the eastern states across to the west via Parkes,” says Anna. “They truck their goods in, put them in the warehouse, load them into high-top containers trains and take them over to Western Australia twice a week.

“It’s the first place they can run a 1.8km train and double stack containers on the route from Sydney to Perth.”

Rail freight operator Pacific National has committed $35 million to the development of its own terminal in Parkes.

28 | Logistics&MaterialsHandling February/March 2018

Intermodal

When asked what his vision was for the Parkes National Logistics Hub, Glenn Smith, CEO of SCT Logistics, said: “SCT has been here for about 10 years and Parkes has been a great hub for SCT for that period of time. But with the announcement of the Inland Rail line, we see SCT opening the door to importers and exporters and general freight carriers who need to move freight efficiently anywhere in the country, or import or export out of the Melbourne, Brisbane and Sydney ports.

“I see Parkes’ future as a great import/export hub. I see two trains a day servicing exporters and importers into ports around Australia.

I also see opportunities, being so centrally located, for wagon maintenance, locomotive maintenance, possibly even manufacturing of rail equipment.”

In October 2017, rail freight operator Pacific National committed $35 million to the development of its own terminal in Parkes, at the intersection of the east-west line with the Inland Rail north-south line. “It will be approximately 600m long, but its final form will be 1.8km, making it one of the largest sidings in Australia,” adds Anna. “Pacific National’s CEO, Dean Della Valle, expects the terminal to be operational by 2019, and we can already see the efficiencies in the market by using Parkes.”

Forward planning In 2006, with approval from the New South Wales Government, Parkes Shire Council rezoned 516 hectares of agricultural and industrial land on the western edge of the town for the development of the Parkes National Logistics Hub, with an additional reserve of over 100 hectares. The site has been specifically

THE NATURAL INTERCHANGE POINT “When Inland Rail’s complete, Parkes will be the natural interchange point for road-to-rail and rail-to-road for freight consolidation,” says Peter Winder, Group Executive – Interstate Network at the Australian Rail Track Corporation (ARTC) and Executive Director of Inland Rail. “[It] also allows the opportunity for rail-to-rail consolidation, because now you’ve got a national freight grid with common operations between Brisbane, Sydney, Melbourne, Adelaide and all of the regional centres in between.”

designed for the 24-hour, seven-days-per-week operation of a multi-modal transport facility.

“In the coming years, we will have one of the biggest transport and logistics hubs in Australia,” says Anna. “We have a 600-hectare greenfield site, which is on the western side of town, with plenty of room to grow.”

According to Michael Kilgariff, Managing Director of the Australian Logistics Council, Parkes’ location sets it apart. “As well as being directly on the line between Port of Melbourne to the Port of Brisbane, there’s already existing connections through to Newcastle, Sydney and Kembla,” he says. “More importantly, it’s also on the rail link over to Adelaide and Perth and even connections to Darwin, so Parkes is really set to become Australia’s largest inland rail hub.”

Reaping the benefits Anna is excited to see Parkes flourish as a key intermodal waypoint. “Inland Rail will bring a new diversity and prosperity to the economy in Parkes,” she says. “The agricultural industry in the region will absolutely benefit from it, with the cost of getting goods to port set to drop by $10 per tonne.

“We’re in a rich agricultural area with amazing fresh products. We can see the potential, not just for our national domestic markets but for the incredible growth of Asian markets.”

She notes that Inland Rail will be good for consumers, regional communities, transport and logistics operators – with transport and logistics operators able to choose the right load for the right mode of transport.

“Parkes is proud to support these benefits spreading to the nation as a whole.”

SCT Logistics, which has had a facility in Parkes for a decade, is excited about the arrival of the Inland Rail line.

logisticsmagazine.com.au | 29

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Technology

According to Naval Sabharwal, Global Head – Supply Chain and Logistics, Ramco, changing business models are pushing logistics towards fully digital, connected and flexible supply chains.

Eyes on the prize In the increasingly complex world of supply-chain logistics, ensuring end-to-end visibility of product movements is no longer just a possibility – it’s becoming a necessity. Story by Bianca Dohnt

R

eal-time traceability of transport services offers consumers a sense of control in order deliveries – it’s now possible to see precisely where a purchase is located, at any time.

The increase in visibility through tracking technology has already been one of the most prominent changes to the transport and logistics industry in recent decades, explains industry expert, Naval Sabharwal. Naval, who has spent 35 years in various roles in the logistics sector, now holds the position of Global Head – Supply Chain and Logistics at business software provider Ramco and has experienced the technological shift first-hand.

“Visibility is the biggest change to the logistics industry, and technology is a huge enabler,” he says. “Gone are the days of working on pen and paper, using carbon sheets to make copies and waiting a week or more to get the status of a delivery. Now, you can see the status

within milliseconds by using tailor-made software solutions.”

Yet, according to the latest State of Logistics report produced by global consultancy AT Kearney, the rising demand for greater transparency and reliability is becoming more complicated to deliver, as e-commerce adds complexity to supply chains. The report finds that rapid technological change and new business models are driving logistics towards fully digital, connected and flexible supply chains, optimised to meet rising consumer expectations of immediacy, personalisation and convenience.

Ramco has been in the logistics market for 10 years. Two years ago, the company made the strategic decision to address these new demands, developing an integrated suite of cloud-based software services for logistics companies to use to track cargo and provide transparency to customers.

“E-commerce recognises no borders,” says Naval. “With the likes of Amazon expanding globally, the need for integrated logistics software became apparent. While the biggest external challenge facing the customer is being able to provide end-to-end visibility of orders, we also found that by increasing traceability internally in a business, there is a real opportunity to maximise profitability.”

That profitability comes through increasing capacity utilisation, he explains, adding that the average logistics company’s capacity utilisation is only at 27 per cent – meaning 73 per cent of capacity created is not earning revenue.

Simply reorganising assets using an integrated optimisation engine can bring that up to 42 per cent, he says. “That’s a 15 per cent jump, which directly impacts revenue margins,” Naval adds.

“More important – once you improve capacity utilisation, suppliers become more engaged, and it becomes easy to build and create more logisticsmagazine.com.au | 31

Technology

Distribution Dashboard

Ramco’s software helps customers with scheduling, routing, billing and more.

Orders Pending

Trucks on the move

70 30 Orders Allocated

Trucks Allocated

90

40

Drivers Unalloacted

Alerts

Distance Travelled 2046 Kms

Truck Idle Time 01 hr 30 mins

Resource Assignment

6

“We ask all our customers what they want the software to be able to do, collate the responses, analyse them, then add the features.”

Naval Sabharwal Global Head – Supply Chain and Logistics, Ramco.

capacity and improve the yields from capacity, driving the growth engine.”

Ramco’s software can match all of the data on available capacities to demand on a weekly basis, do the scheduling and also allow logistics service providers to draw on external assets as required. “What we did was use Uber as the base model,” he explains. “Uber’s strength is in how it manages capacity for its suppliers, and we built a model tailored to the logistics industry.

“Just like Uber, the focus is not just on its features, which include automatic data capture, scheduling, GPS, data management, billing and routing. The focus is also on ease of use – there have been many great logistics optimisation

software tools that have failed because they are too hard for customers to use effectively.”

To ensure end-users are able to get the most from the Ramco Logistics suite, a member of its advisory board meets with its customers once every six months or so to get direct feedback, Naval explains. “We ask all our customers what they want the software to be able to do, collate the responses, analyse them, then add the features,” he says. “We implement around 93 per cent of the input we receive from customers and are constantly upgrading the software to meet the logistics industry’s evolving needs.”

Ramco’s findings on changing consumer demands are in line with that of the State

of Logistics report, which advises that the industry is shifting from a transactional business model focused on discrete services toward an integrated model of ‘one-stop shops’ for end-to-end logistics services. “Ninety per cent of our customers use the complete end-to-end suite that covers transport, hubs and warehousing points,” says Naval. “The real value of the suite is its integrated nature. By covering every step of the transaction, we’re able to minimise revenue leakages.”

Naval notes that the average logistics company is subjected to revenue leakage of between one and three per cent, monthon-month, adding that it can be reduced to less than 0.1 per cent through the use of an all-encompassing suite of software. Utilising blockchain technology (see breakout box) will be an important next step to increasing visibility in the global logistics industry, he says.

“The way we see it, the global supply chain – including shipping, air, rail and road – has no option but to go to blockchain,” says Naval.

“Consumers are bound to get more conscious of health and safety areas, for example. They want to know the food they eat wasn’t sourced with child labour or subjected to pesticides. That information is lying around, and the only way to provide end-to-end visibility to a consumer is with Blockchain.”

Though visibility in the global supply chain has evolved significantly since the early days of pen, paper and carbon sheet copies, according to Naval there is still a long way to go. The State of Logistics report echoes those sentiments, adding that as demand for e-commerce reshapes networks and relationships, technology uptake must follow suit.

Ramco took inspiration from Uber when designing its integrated logistics software.

EXPLAINING BLOCKCHAIN In 2008, blockchain emerged as a technology offering secure data transactions across various domains such as supply chain tracking, voting and government services. Blockchain technology is resistant to modification and therefore enhances security for transport companies.

32 | Logistics&MaterialsHandling February/March 2018

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Technology

DIGITAL

REALISM Augmented reality, a technolgy found in entertainment apps such as Pokémon Go and Snapchat, could help Australia’s logistics industry tackle its impending driver shortage.

Inspired by computer-generated marvels, the logistics industry looks to the future for performance gains.

Story by Luke Applebee

I

n July 2016, location-based augmented reality (AR) smartphone game Pokémon Go went viral, with Nintendo doubling its US market value – soaring as high as $23.4 billion in the first two weeks of the app’s launch. To this day, players still enjoy playing Pokémon Go, using mobile devices to catch computer-generated pocket monsters that seem to appear in the real world.

While apps and computer games have dabbled with AR for entertainment purposes, the same technology could be used to tackle the logistics industry’s driver-shortage issue in Australia by attracting a new generation to the sector.

Augmented Reality in Logistics – Changing the way we see logistics, a report released by global courier company DHL, dived into the potential practical applications of AR in transforming logistics and freight tasks for improved productivity and efficiency.

Put simply, DHL defined AR as the enrichment of visible objects with additional and valuable information, “the expansion of physical reality by adding layers of computer-generated information to the real environment.”

DHL speculates that in the future, the logistics

34 | Logistics&MaterialsHandling Febuary/March 2018

industry will utilise real-time traffic data to optimise delivery-fleet routes. “AR driver assistance apps (either with glasses or windshield display) could be used to display information in real-time in the driver’s field of vision,” the company said. “In effect, AR systems will be the successors to today’s navigation systems, with a key advantage that the driver doesn’t have to take their eyes off the road.”

DHL takes the concept further, stating that AR systems could also provide drivers with critical information displays on their vehicle and cargo.

This would be especially ideal for transport tasks that involve a temperature-sensitive payload.

A visual representation or confirmation of cargo temperature could be advantageous for interstate line-haul operations, as the driver could be more proactive in preventing goods from being compromised due to mechanical fault or human error while loading freight. Rather than learning of an issue at the point of unloading, or stopping to check the goods, AR set up for this function would provide drivers with peace of mind and an advanced level of quality assurance.

In addition to managing cargo temperatures,

AR systems could also be used to streamline the freight loading process.

“AR devices could help by replacing the need for printed cargo lists and load instructions,” DHL said in the report. “At a transfer station, for example, the loader could obtain real-time information on their AR device about which pallet to take next and where exactly to place this pallet in the vehicle.

“The AR device could display loading instructions, with arrows or highlights identifying suitable target areas inside the vehicle. This information could be generated either in advance by planning software or on the spot by ad-hoc object recognition. The latter approach is comparable with the popular computing game Tetris, where the gamer has to place the next random item according to its shape in order to maximise available space and avoid gaps.”

By eliminating the paper trail and using technology to make the best use of available payload space, AR-supported cargo lists could change the freight loading game for the better.

Disruption via e-commerce is changing the face of ‘last-mile delivery’, forcing logistics operators

Technology

to rethink their supply chains, the company notes.

“The growing use of e-commerce has led to a boom of last-mile delivery services, which is the final step in the supply chain and often the most expensive one,” said DHL. “Therefore, the optimisation of last-mile delivery to drive down product cost and increase profit is a promising field of application for AR devices.”

DHL estimates that drivers spend between 40 and 60 per cent of their time away from the distribution centre (DC), and spend too much time locating the correct boxes within their truck for the next delivery. “With efficient and intelligent loading, and with AR devices highlighting the right parcel for the driver, the search process would be much more convenient and significantly accelerated at every drop-off.”

Other companies around the world have also been experimenting with virtual reality (VR), described by DHL as a completely computergenerated, immersive and three-dimensional environment displayed either on a computer screen or through special stereoscopic displays.

US-based postal service UPS started using VR in September 2017 at nine of its state-of-theart ‘Integrad’ training facilities. The Integrad facilities teach students the fundamentals of driving delivery vehicles and delivering packages via a hands-on approach. Students

practice driving UPS delivery trucks in a replica outdoor city that has real streets and pathways as well as simulated delivery and pick-up sites. Student delivery drivers are tasked with spotting and identifying road hazards while wearing VR headsets that simulate the experience of driving on city streets.

IT experts at UPS created VR training modules that users see and hear inside VR headsets, and students using the modules must verbally identify potential road hazards, such as pedestrians, parked cars and oncoming traffic.

The 360-degree view inside the headset is realistic down to the finest details, according to UPS’ Chief Information and Engineering Officer, Juan Perez. “Virtual reality offers a big technological leap in the realm of driver safety training,” he said. “VR creates a hyper-realistic streetscape that will dazzle even the youngest of our drivers whose previous exposure to the technology was through video games.”

The VR training modules replace touchscreen devices UPS training facilities currently use to teach lessons on road hazards. For now, the VR training is only for those who drive packagedelivery trucks, but the company is exploring VR and even AR for training truck drivers and performing other duties.

UPS’ use of the latest VR and AR technology

reflects the company’s safety culture. UPS has more than 9,000 drivers in its ‘Circle of Honour’ – an elite group of drivers who have not had an avoidable accident in at least 25 years.

The first UPS Integrad facility opened in the US in 2007, and in the time since, nearly 9,000 students have graduated. The training – based on the philosophy ‘Teach me. Show me. Let me’ – occurs before students begin more intensive on-road training.

“This training is foundational, and virtual reality brings it to life,” said Jeanne Lawrence, Integrad Expansion Director, UPS, at the launch of the facility. “VR complements real-world training in a way that deeply engages our employees in the UPS Integrad curriculum.”

Games like Pokémon Go are helping people of all ages to interact with mobile devices in new ways, encouraging app developers and logistics professionals to repurpose the technology with improved productivity in mind.

With AR and VR influencing everything from final-mile delivery to technical education, the future is now. Australian companies are speculating on the practical applications and advantages of implementing 3D technology, while fleets overseas are leading by example, reaping the rewards of using state-of-the-art commercial vehicle equipment.

Last-mile delivery is evolving, thanks to the rise of e-commerce, and the use of technology to improve productivity, safety and efficiency.

logisticsmagazine.com.au | 35

Product in focus

Refurbish, reuse, recycle An innovative Australian company has become a textbook example of how to succeed by taking advantage of cost efficiencies created by using pre-owned assets.

Q

ueensland company Shipping Container Pools has proved the benefits of recycling and re-use, right down to the certified refurbished Linde Material Handling forklift at the heart of its operations.

Millions of Australians saw the company’s approach in action when television program The Block featured one of its above-ground pools, made from a repurposed shipping container.

That marked the current high point for a family business that began as a joint project

when Johannes Roux combined his pool-building experience with architecture student son Jonavan’s exploration of shipping containers as building elements.

A growing task “We’ve moved to larger premises three times and our output has grown from one shipping container pool per fortnight to now dispatching seven each week,” explains Jonavan, adding that the Linde forklift became an essential asset for the business.

“We began with an old 2.5-tonne used forklift

and a tilt-tray truck to handle the shipping containers we convert. Now, we are using a gantry crane and a refurbished Linde H70D 396 seventonne diesel forklift at our Coolum Beach factory.

“The original method took a day per container, but now with our Linde forklift one man can accomplish what we need to do in ten minutes, including lowering the access stairs and fibreglass shells into positions.”

Shipping Container Pools contacted Linde with a view to acquiring a used forklift with 2.4m tynes and a seven-tonne lift capacity after observing

Jonavan Roux, CEO, Shipping Container Pools and Kyle Robberts.

Account Development Manager, Linde Material Handling Australia.

36 | Logistics&MaterialsHandling February/March 2018

Product in focus

“We see this as an investment that will serve us well for several years to come.”

Jonavan Roux CEO, Shipping Container Pools.

[L–R] Shipping Container Pools’ Production Manager, Stephen McDougall; employee Dion Thompson; CEO Jonavan Roux and employee Evan Albertyn.

a neighbouring business’ successful use of Linde equipment.

The company took delivery of a seven-tonne diesel Linde forklift sourced from the ‘Silver’ level of Linde’s Certified Refurbished Forklift program.

Its condition was covered by comprehensive pre-delivery preparation, with forklift mast, carriage and hydraulics tested to forkliftmanufacturer specification, steer axle checked and set to forklift-manufacturer specification, hour meter function tested and a complete repaint to the forklift’s original colours.

The full forklift truck history was made available and the truck was also covered by a warranty of six months, or 500 hours’ parts and labour.

reliability resulting from duplicated monitoring systems and automatic control of engine speed determined by the load carried. It is enclosed in sealed modules for protection against dust and dirt.

A perfect fit “The Linde has been in service with us for nine months,” says Jonavan. “It is a perfect fit for our growing business. Obviously the purchase price was attractive, but it also has all the capability that we need. It is in use every day, constantly

running up and down the production area and it has never let us down.

“We couldn’t believe it when it arrived from Linde. It looked completely new throughout, and not just the paintwork. The handover was very professional and so we could put it to work immediately.”

Jonavan notes that the forklift has proved popular with the team at Shipping Container Pools.

“Various operators get onto it throughout the day,” he says. “They all love it and have commented on how good it is in areas such as the controls and the drive system.

“We see this as an investment that will serve us well for several years to come. At the rate we are growing we are probably going to need a similar one from Linde within the next year.

Based on our experience, we believe it has been a bargain.”

Safe, efficient, reliable Standard features of the Linde H70D 396 seven-tonne diesel forklift that contribute to its popularity – whether new or refurbished – include hydrostatic drive and the Linde Protector Frame, which features an enclosed, robot-welded chassis for maximum durability and protection of components.

Linde twin-drive pedals create fast and smooth travel direction changes without constantly moving feet from one pedal to the other, and short pedal travel eliminates strain on ankles or legs.

Mini levers for all mast functions are mounted on an adjustable armrest, allowing precise and effortless fingertip control of all hydraulic functions for safe, efficient load handling.

The Linde Truck Control system creates high

Shipping Container Pools’ refurbished Linde forklift has enabled the company to complete full-day jobs in 10 minutes. logisticsmagazine.com.au | 37

Packaging

5

steps to load integrity

When securing loads for transit, companies are making mistakes that cost them – through time, product and material wastage. Industry expert Richard Layton shares his top tips for maintaining load integrity, while looking after the bottom line.

I

n his three decades manufacturing and supplying load unitisation solutions, Richard Layton – Managing Director of load-wrapping specialist Fromm Australia – has seen stretchwrap technology develop in leaps and bounds, though the mindsets of those using it have been slow to catch up.

“People tend to become set in their methods of using stretch wrap film and machines,” he explains. “If you embrace the new technology, you’ll find you’re using less film, getting a more secure load, saving money and having fewer loads ending up in the wrong place.”

Richard shares five steps to help companies optimise their stretch-wrap packaging.

Step 1: Use the right amount of film “If you put too much film on a load, you’re not helping – the film’s not doing what it’s designed to do,” says Richard. “In the last 20 years, films have become more puncture resistant and more stretchy.”

He notes that using too much film is as bad as using too little. “The end result is the load has not got the integrity it needs – should there be an incident, it won’t perform as well as users might think,” he adds. “We can often show companies a 20–30 per cent drop in film consumption simply by putting the right film on the right load, in the right way.”

Richard shares that securing loads with too much film can also have another unwanted consequence – lost shipments. “Too much film will mean in many cases that clarity is lost,” he says. “In this day and age, people want to use barcode scanners to read product labels. Where too much film is applied you may not be able to scan the barcode, so the load could be sent to the wrong destination.”

Step 2: Check you’re stretching the film enough “Stretch film is designed to be stretched, hence the name,” says Richard. “The film has got to 38 | Logistics&MaterialsHandling February/March 2018

be in its working range, known as the ‘shock reserve’, to enable it to function correctly. If you’re not stretching it enough, the load is not unitised properly.”

Certain films are designed to be stretched to

says. “On its way to Cairns, a load will likely go through more handling, being moved from truck to truck, while the Parramatta-destined load may be handled just once.

“It’s essential that the film and wrapping

250 per cent, meaning a one-metre section of film should become 3.5 metres. “If you stretch that film to 100 per cent, you’re going to get two metres of film – but it’s like hugging someone and not hugging them enough,” he says. “If over- or understretched, the film won’t function under stress and a load may collapse, or get damaged.”

method chosen are fit for purpose – companies must understand the film’s ability to perform.”

Step 3: Choose the right film for the application If using a brake machine designed for minimalstretch film, using film designed to stretch by 250 per cent will waste time and money, Richard explains. “You’re trying to make the film go from plastic to elastic,” he adds. “A small warehouse using a small machine, wrapping 10 pallets per day, would need a different film than a large operation wrapping pallets continuously.”

He explains that Fromm Australia stocks around 15 different types of film, each optimised for clarity, stretch and other individual requirements.

“We do a black film for security, printed film for marketing purposes, even films with a UV stabiliser so the load can be left outside until needed,” he says.

Richard notes that particular industries can request specialised film formulas for their specific needs. “Australia is one of the largest exporters of hay in the world,” he says. “Hay is spiky, so we have a film that has a higher puncture resistance so it won’t pierce the film and make a mess.”

Step 4: Choose the right film for the transit mode The type of transit a load will experience may impact the type of film used to secure it, Richard explains. “A pallet being shipped from Sydney to Cairns would require different treatment than one being shipped from Sydney to Parramatta,” he

Step 5: Avoid false economies A cheaper roll will often prove to be more expensive in the long run, Richard notes. “In many cases, people just look at the price of the roll,” he says. “But it is crucial to compare the length of the roll, and its full length once properly stretched.

“People are often hoodwinked by marketing techniques and are not buying the right unit of measure to make decisions. It’s the cost per pallet wrapped – that’s the true cost.”

The biggest mistake Richard sees companies making is focusing on the price of a roll of film rather than their cost of returns.

“The cost of returns in the industry is around four per cent,” he says. “If four per cent of every load you’re sending out is going to be wastage because you’re using the wrong stretch film, or the wrong load unitisation, that is a huge saving consideration for all companies.”

Richard predicts that in the future, companies will put greater emphasis on studying what happens to their loads in transit. “They will start to think about how they can get their products from A to B in the best possible condition, tracking their damage ratios and environmental impact,” he says. “At present, there’s still too much guesswork.”

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“ A PERFECT FIT FOR OUR GROWING BUSINESS.” Jonavan Roux, Shipping Container Pools

Image for illustration purposes only.

REFURBISHED LINDE FORKLIFT IS A POOLS WINNER Linde H70D 396 Diesel Forklift Selecting a certified refurbished Linde 7 tonne diesel forklift made perfect sense for Shipping Container Pools.

It saved tens of thousands of dollars over the cost of new equipment for the fast growing company, freed up capital for expansion and added the capacity to boost production. The quality Linde H70D 396 forklift was covered by comprehensive pre-delivery preparation of mast, carriage, hydraulics, steer axle and hour meter function as well as a complete repaint to the forklift’s original colours. If you’re looking for a safe alternative to diving into the deep end of equipment expenditure, Linde has certified refurbished forklifts ready to perform. Talk to Linde today.

lindemh.com.au 1300 135 463