Logistics & Materials Handling - Aug 2018

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inside AUGUST/SEPTEMBER 2018 A new era for 3D printing The rise of the parcel locker Sustainable wrapping solutions Women in Industry winners

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This Inissue this issue March 2016 August/September 2018

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28

Pushing boundaries

Over the past decade there has been a dramatic change in the way we shop. This is largely due to the increase in choices we now have for every decision we make as a consumer. In addition, consumers are now disappointed if they are not presented with the option to shop 24/7 or have the ability to pick convenient delivery choices.

This change in consumer behaviour and expectation has put increased pressure on retailers and their supply chains. In today’s competitive climate, businesses have no choice but to adapt to these fast-changing habits. As logistics is an industry that doesn’t wait for anyone, many of those innovations are happening in the logistics and materials handling sector first, before being rolled out to other industries.

In the latest issue of Logistics & Materials Handling we explore some of those innovations happening here in Australia.

In the last-mile logistics and consumer convenience space, we speak with Malcom Lewis, founder of Australian start-up Chester, about how he has developed an innovative new way for consumers to receive parcels safely and securely, even when they are not home (p20).

In an innovation that growth is set to at change the future Proving profitable the cutting of manufacturing and logistics, we report on ed Proving profitable growth at the cuta record-breaking launch event at Melbourneting edProving profitable growth at the based additive manufacturing cutting edProving profitablecompany, growth at Titomic (p24). the cutting edProving profitable growth In fact, in everyedProving story this month, we feature at the cutting profitable innovation new ideas.

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behindthecover

20 Contents COVER STORY 16 A licence to operate

The Port of Melbourne’s General Manager discusses the future plans for the port and why privatisation has led to planning certainty.

contents

04 Bulletinboard

34 Boosting efficiency

Fred Pizzicara, National Procurement Manager at SEW-EURODRIVE talks through the implementation of a new logistics process that aims to boost operational efficiency.

Tru-test of quality.

42 Data Capture & 36 That’s a wrap…Supply Chains FEATURES Omni-group’s sustainable 24 Factory MaterialsLMH finds out why 06 Mercury Awards Sustainable supply chains. wrapping innovation is an award-winning Handling 20

T he rise of the parcel locker 2010 Mercury Awards solution.

With increasing consumer demandSpiral to deliver conveyor solves launched.

44 Forklifts & Lifting parcels conveniently, LMH looks atheat the growing problems.

Humbled and Exalted new overhead cranes 38 People on theSix move parcel locker solution.

Cart dollies for simple for Ferrocut.

The latest appointments in the logistics and handling tasks. materials handling sector. system reduces Airfreight Double pallet dispenser. handling costs.

The largest and fastest 3D printer in the world 14 Training was launched in Melbourne and LMH was on robot.

Palletising Hybrid forklift. hand to report benefits back on the record-breaking Bell’s Transport fromevent.

Skills for Growth 03Storage From the Editor 32 Warehousing & 49 Handling Hazardous program.

28 Celebrating success Record picking 06 Industry News Goods 14 Global News Gloves for handling After winning Business Development Manager of productivity.

16 Information the Year Award at the Mercury Awards Federica hazardous 30 Australian Logistics Council substances.

Automated storage.

Technology - Supply Guidi talks about why she is passionate about Hand-held eyewash.

Chains Storage success. logistics.

Information driven.

32 Representing a nation – 2009 Mercury Award winners.

24 A new era for 3D printing

Regular Run

LMH sits down with the Managing Director and Founder at UC Logistics to find out why she is passionate about safety and the Chain of Responsibility.

cutting edProving profitable growth at the cutting edProving profitable growth at the cutting edProving profitable growth at the cutting edProving profitable growth at the cutting.

Melanie Stark | Editor PUBLISHER: John Murphy MANAGING DIRECTOR: John Murphy ASSOCIATE PUBLISHER: Martin Sinclair e martin.sinclair@primecreative.com.au MANAGING EDITOR: Robbie Parkes e robbie.parkes@primecreative.com.au EDITORIAL CO-ORDINATOR: Ben Hagemann t 02 8484 0884 e ben.hagemann@primecreative.com.au EDITOR: Melanie Stark e melanie.stark@primecreative.com.au PRODUCTION CO-ORDINATOR: Ziba Mahabat t 02 8484 0625 e ziba.mahabat@primecreative.com.au PRODUCTION CO-ORDINATOR: Michelle Weston e michelle.weston@primecreative.com.au KEY ACCOUNT MANAGER: Tim Richards t 02 8484 0829 e tim.richards@primecreative.com.au BUSINESS DEVELOPMENT MANAGER: Terry Wogan e terry.wogan@primecreative.com.au PRIME CREATIVE MEDIA PRIME CREATIVE MEDIA Tower 2, Level 3, 475 Victoria Avenue, Chatswood, NSW 2067 Australia Locked Bag 4700, Chatswood Delivery Centre, NSW 2067, Australia 11-15 Buckhurst St, South Melbourne, VIC 3205 Tel: (03) 9690 8766 Fax: (03) 9682 0044 ABN 80 132 719 861 ISSN 0004-976X www.primecreative.com.au Tel: (02) 8484 0888 Fax: (02) 8484 0633 ABN 80 132 719 861 ISSN 0004-976X www.primecreative.com.au Suite 3.03, Level 3, 1-9 Chandos Street, St Leonards, NSW 2065 Tel: (03) 9439 7227 © Copyright Prime Creative Media, 2016 © Copyright Prime Creative Media, 2017 All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher.

All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the Publisher.

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Industry News

DHL eCommerce opens Melbourne distribution centre DHL has announced the opening of its Melbourne distribution centre to support the strong growth of e-commerce exports out of Australia.

The distribution centre co-located with DHL Global Forwarding’s 16,700 sqm facility in Tullamarine will support e-commerce exports from Australia to popular destinations such as China, U.S., UK, Germany, New Zealand and Southeast Asia, utilising DHL’s networks and routes to drive cost efficiencies for customers.

“Two significant trends are influencing global trade: the increasing adoption of e-commerce and the prominent role of logistics networks in shaping trade. In this changing environment, Australian consumer goods companies have an excellent opportunity to grow export markets with e-commerce continuing to grow as a strong channel,” Charles Brewer, CEO, DHL eCommerce said.

The Melbourne distribution centre will focus on e-commerce exports weighing up to 2kg shipped to over 220 countries and territories worldwide. With the addition of the new facility coupled with the existing distribution centres in Sydney, DHL eCommerce will support Australian e-commerce sellers looking to export to an

increasing number of markets internationally.

“The ‘Made in Australia’ brand is highly recognised and widely trusted internationally.

E-commerce is a strong and growing channel

with 78% of Australian exporters already generating orders from online channels,” Denise McGrouther, Managing Director, DHL eCommerce Australia said.

The DHL Melbourne distribution centre will focus on e-commerce exports.

What will the future of freight look like in Australia?

According to a report by Deakin University into the future of Australia’s supply chain, the future of freight could see drones delivering mail and autonomously-driven mobile grocery stores.

The recently published scenario report from Deakin’s Centre for Supply Chain and Logistics, was commissioned by the Federal Government as part of Australia’s first Inquiry into National Freight and Supply Chain Priorities.

The Deakin team looked at how mobile driverless grocery stores could replace supermarkets; while drones and ‘RoboPost’ automatic delivery units, travelling along footpaths and bike lanes, could take over mail services. They also explored how the sharing economy could expand to include an Uber model for truckies, and for warehouses to be leased like a home on Airbnb.

The Deakin project identified about 200 future drivers of change through a series of interviews 4 | Logistics&MaterialsHandling August/September 2018

The future of freight could see drones delivering mail, says Deakin University.

with experts in the supply chain industry. These fed into the development of four future scenarios, imagining the world in 2037.

Project leader Dr Roberto Perez-Franco, a Senior Research Fellow at the Deakin centre, said the scenarios allowed a group of industry experts to obtain important insights into how Australia could be successful and competitive in

these challenging versions of the future.

Dr Perez-Franco said a National Freight and Supply Chain Strategy, which will be informed by the Inquiry, was critical for Australia to keep pace with threats from global development, growing automation, climate change and a rising population that was increasingly centred in congested cities.

Industry News

Amazon launches Prime in Australia Amazon has launched its membership program, Amazon Prime, in Australia, offering free two-day delivery to nearly 90 per cent of

Australians for an annual fee of $59.

Amazon Australia’s country manager Rocco Braeuniger noted the company was “thrilled” Amazon Prime is now available to customers in Australian capital cities.

to introduce Prime six months after launching a local retail offering in Australia.

“We have been working hard to expand selection, ensure customers get great value, and improve the Amazon shopping experience for Australians. With the addition of Prime, customers can now enjoy the most convenient way to shop and take advantage of new and expanding benefits from Amazon,” he said.

It is currently available to members in Australian capital cities, including Sydney, Melbourne, Brisbane, Canberra, Adelaide, Hobart and Perth, as well as regional cities, such as Albury-Wodonga, Bendigo, Gold Coast, Gosford, Newcastle, Shepparton–Mooroopna, Toowoomba, Wagga Wagga and more.

Prime members in more remote or rural locations will receive free expedited shipping in as fast as four or five days.

Australia Post reveals Environmental Action Plan Australia Post has launched its very first Environmental Action Plan as part a commitment to reduce carbon emissions by 25 per cent by 2020, and save $10 million every year through environmentally sustainable programs.

Australia Post created the Environmental Action Plan to shape ongoing reporting and future activities that will lead to long-term sustainability.

Chief Financial Officer Janelle Hopkins said that by driving sustainability, they can release resources to better explore new areas and improve customer experiences.

“That saving of $10 million every year enables Australia Post to invest more in improving and creating services our customers want to use,” Janelle said.

“Since 2000 we have reduced our carbon emissions by 20 per cent, which is significant given domestic parcel volumes are continuing to grow, and more than two million parcels were delivered in a single day during Christmas last year.

“In the last eight years we have been working to aggressively reduce our carbon footprint, even going beyond our own sites to account for our third-party supply chain.

“Our first ever Environmental Action Plan 6 | Logistics&MaterialsHandling August/September 2018

is a step towards continuing to reduce carbon emissions and achieve our target of a 25 per cent reduction by 2020.”

Australia Post installed the country’s largest single-roof solar panel system late last year at the Sydney Parcels Facility, which Janelle said alone saves $800,000 every year within their extensive 48-site solar energy program.

“We are seeing immediate returns as we unlock renewable energy at some of our busiest sites, which helps to insulate the business against

rising energy prices.

“But we’re also looking at how we can leverage our existing network to support communities. Our partnerships with groups like TerraCycle, Planet Ark and Mobile Muster has seen us remove 26,000 tonnes of material from landfill. We also helped develop the world-first Nespresso recycling satchel to send used coffee pods to a purpose-built recycling centre, and our own satchel packaging is now completely recyclable," Janelle said.

Australia Post is making significant steps towards its goal of reducing carbon emissions by 25 per cent by 2020.

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Industry News

Australia’s first Robotics Roadmap launched Australia’s very first Robotics Roadmap delivering a range of solutions for Australia’s transport and logistics industry has been launched.

Leaders in academia, industry and government across the transport and distribution industry helped shape the Roadmap through submissions and workshops held in late 2017.

The Australian Centre for Robotic Vision pioneered the Robotics Roadmap concept, collated submissions and co-ordinated the vital national roadshow across five Australian capital cities ahead of producing the report.

“We are thrilled to officially present Australia’s first Robotics Roadmap. The Robotics Roadmap is a first step towards a national strategy to invest in robotic technology to create and support a vibrant economy, community and nation. It’s an excellent step for the transport and logistics sector with a number of new robotic technologies currently being developed to help optimise the success of delivery in Australia,” Dr Sue Keay, Chief Operating Officer, Australian Centre for Robotic Vision said.

“The Australian e-commerce market is worth a staggering $10 billion and this places growing demand on the transport and logistics sector.

Retail and logistics are becoming more complex and Australia’s vast distance between cities and remote communities only adds to the demand on distribution companies,” Dr Sue Keay added.

Dr Sue Keay, Chief Operating Officer, Australian Centre for Robotics, presented Australia's first Robotics Roadmap at a launch event in Canberra.

Truck technology trial to take place in Sydney to ease congestion

In an attempt to ease congestion in Sydney, a trial connecting trucks to traffic lights is taking place.

Trucks will soon be able to ‘talk’ to traffic lights as part of the New South Wales Government Innovation Initiative trial to tackle congestion.

Minister for Roads, Maritime and Freight, Melinda Pavey, announced in June that the trial to tackle congestion by using connected 8 | Logistics&MaterialsHandling August/September 2018

technology to reduce the number of times trucks stop at traffic lights has begun.

“Heavy vehicles take a long time to stop and start, which can cause delays for all road users,” Melinda said.

“This trial will detect a heavy vehicle

approaching traffic lights and provide more green time, which will hopefully show us how we can ease delays for all motorists.”

The trial reportedly involves the application of the Sydney Coordinated Adaptive Traffic System (SCATS), providing participating freight vehicles (more than 100 heavy vehicles) priority at traffic lights. Run over three months, the results will be evaluated to determine congestion effects.

Melinda hopes to expand the use of this kind of technology to emergency vehicles as well as buses, which could improve daily commutes.

“The opportunities are vast, with Sydney’s freight set to double over the next 40 years and increase by 25 per cent in regional New South Wales, we have to look outside the box,” she said.

Industry News

Coca-Cola Amatil appoints Röhlig Australia as Freight Management Partner Coca-Cola Amatil has engaged Röhlig Australia Pty Limited as sole partner for international freight management services in Australia.

The partnership is designed to support Coca Cola Amatil and its network of suppliers and retailers with freight management services and logistics consultancy services to optimise processes within Coca-Cola Amatil’s supply chain.

Röhlig Australia have been working with CCA for the past two years and during this time have built a strong relationship as a reliable freight forwarder. This partnership enables Röhlig Australia and Coca Cola Amatil to take their business to the next level, with a whole of business supply chain focus.

“We are extremely excited to be partnering with Coca Cola Amatil and working with such an innovative global brand” Hany Amer, Röhlig Australia’s Managing Director said. “Röhlig Australia have built a strong foundation with dedicated account management services and establishing a transparent, sustainable and mutually beneficial pricing model. We

look forward to consistently delivering value through this partnership and are very proud

to be included in Coca-Cola’s Partner for Growth program.”

Röhlig Australia will work with Coca-Cola to optimise its supply chain.

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Industry News

Downer forms alliance to revolutionise 3D printing A three-year research alliance has been set up between Downer and University of Technology Sydney.

Through its Mineral Technologies business, Downer has formed an alliance with University of Technology Sydney (UTS) and Innovative Manufacturing CRC (IMCRC) to cooperatively research solutions that will revolutionise the way additive manufacturing can be used to improve the production of mineral separation equipment and create new manufacturing technologies.

Anticipated to run over a three-year period, the research alliance covers the first phase of the project. UTS will house all project work at a new additive manufacturing facility at its Broadway campus to network and brainstorm various conceptual ideas.

Australians on record $21 billion online shopping spree More Australians are shopping online than ever, with total purchases topping $21 billion for the first time, according to new research from Australia Post.

Australia Post has released its annual Inside Australian Online Shopping Report – an overview of Australia’s eCommerce market which identifies who is buying what and where online.

The report showed that Australians spent Australians spent $21.3 billion in online shopping last year.

10 | Logistics&MaterialsHandling August/September 2018

$21.3 billion last year – an 18.7 per cent increase compared with 2016. Local retailers accounted for more than 80 per cent of the total spend.

Australia Post General Manager for Parcels & Express Services, Ben Franzi, said Australians shopped online to access greater value, choice and convenience, and a clear example of this was the rise of online market places.

“Marketplaces – such as Amazon, eBay and

Etsy – are booming, growing 74.8 per cent in the past year alone,” Ben said.

“Australians really appreciate the convenience of being able to access goods from a variety of sellers in the one location.

“In the past year we have seen new marketplace entrants, which is always great to see, in recognising the increased customer traffic that this type of format offers.”

Industry News

Yojee signs services agreement with DB Schenker Yojee Limited, an Australian artificial intelligence (AI) and blockchain technology company, has entered into a Services Agreement with Schenker (Asia Pacific) Pte Ltd, the regional headquarters of DB Schenker in Asia Pacific, as the first stage of a potential broad DB Schenker regional technology rollout.

Under the Services Agreement, Schenker (Asia

Pacific) will pay Yojee a fee to commence a project for the implementation of Yojee’s platform into Schenker’s (Asia Pacific) Ecommerce and last mile operations.

The project will run for up to four months, after which both companies will evaluate next steps.

“We look forward to working with DB Schenker, a true global logistics leader, to

evaluate building an industry leading digital transformation package using Yojee’s platform, AI and blockchain. This agreement with DB Schenker provides strong industry validation of Yojee’s unique value proposition to global logistics companies and the future potential of our technology,” Ed Clarke, Managing Director at Yojee said.

Coles and TWU agree on safety, fairness for supply chain workers Supermarket company, Coles, and the Transport Workers’ Union have signed two Statements of Principles that will ensure safe and fair conditions for workers in the Coles supply and on-demand economy.

The first Statement, signed at TWU National Council in Adelaide by Coles Managing Director, John Durkan, and TWU National Secretary, Tony Sheldon, includes five principles to ensure safety and fairness

for transport workers within the Coles supply chain.

These principles include: the ongoing promotion of safety and fairness; transparency on supply chain information; ensuring workers are treated fairly and have the right opportunity to contribute to a collective voice; education, training and consultation of workers on safety, and initiatives to ensure safety in the industry more broadly. The five principles will underpin

a Charter between Coles and the TWU. According to TWU, a separate Statement of Principles about workers in the on-demand economy recognises that workers in the on-demand economy are involved in a rapidly changing workplace environment, but this does not mean artificial terms for workers should limit their access to appropriate entitlements such as leave, proper payment, superannuation, safe working conditions and representation.

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Industry News

Brisbane to host 2020 Intelligent Transport Systems forum Brisbane has been selected to host the 17th Intelligent Transport Systems (ITS) Asia Pacific Forum in May 2020 (ITSAP2020).

Transport and Main Roads Minister, Mark Bailey, said it was an honour for Queensland to be selected as the 2020 host location, with the announcement made during the recent ITS Asia Pacific Forum held in Fukuoka, Japan.

“Queensland is at the forefront of developing and deploying ITS technologies, particularly in the area of cooperative and automated vehicles, and I am delighted the forum will be held in Brisbane in 2020,” Mark said.

“It is an exciting era for ITS and the ITS Asia Pacific Forum provides an opportunity to bring the industry together to share how far we have come, and prepare for the journey ahead,” he said.

Australia’s Ambassador to Japan, Richard Court, said more than 1,000 delegates were expected to attend the forum in 2020.

“Our industry resources will collaborate with our international peers to produce a strong ITSAP2020 program to help move the industry forward locally, in Asia Pacific and globally,” Richard said.

More than 1,000 delegates are expected to attend the forum in Brisbane in 2020.

eBay launches free delivery in Australia eBay has announced the launch of its shopping membership program, eBay Plus.

Available from mid-June, eBay Plus will give members free delivery and returns on 15 million products

eBay customers in Australia are due to benefit from free delivery.

12 | Logistics&MaterialsHandling August/September 2018

The membership allows shoppers the freedom to compare and choose products from ebay.com.au.

Tim MacKinnon, Managing Director of eBay Australia & New Zealand, said the introduction of eBay Plus is a game-changer for Aussie shoppers

and will address the pain-point of delivery costs.

“We know our customers love the value and convenience of online shopping but our research shows the cost of delivery can stack up over time,” Tim said.

Industry News

CEVA Logistics secures fifth warehouse in Victoria CEVA Logistics has further expanded its presence in Melbourne’s West by leasing its fifth warehouse in Frasers Property Australia’s West Park Industrial Estate in Truganina, Victoria.

Built on a speculative basis and pre-sold to Primewest, the fifth facility located at 18 Foxley Court recently reached practical completion and has a value in excess of $23.5 million. The facility will take CEVA’s current occupancy to 181,026 sqm (330,000 sqm of land) in West Park Industrial Estate.

The new deal’s total lettable area is 23,199 sqm comprising a 22,670 sqm warehouse, 529 sqm mezzanine office and 67 car spaces.

Primewest Industrial Income Trust No 2 is the landlord of the new facility, which has been designed to achieve a 5 Star Green Star rating.

Anthony Maugeri, General Manager, Southern Region Commercial & Industrial, for Frasers Property Australia comments, “We have a wellestablished relationship with CEVA which extends over a decade. The partnership has been built on mutual respect and trust to

deliver state-of-the-art facilities that create business efficiencies.

“Truganina is one of the fastest growing industrial precincts in Australia and continues to attract major transport and logistics

businesses. Victoria’s West is expanding rapidly. West Park Industrial Estate is ideally located to capitalise on this growth with its proximity to the Port of Melbourne, Melbourne Airport and Western Ring Road.”

CEVA Logistics has leased its fifth warehouse in Victoria.

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Global News

Alibaba to build logistics network to support 1 billion parcels a day Jack Ma, Executive Chairman at Alibaba, announced significant investment in a logistics network.

Alibaba Executive Chairman Jack Ma has announced that the group will invest billions of dollars to build the technical backbone for a smart logistics network.

Ma said the target of Cainiao Network, Alibaba’s logistics arm, is to eventually ensure single-day delivery across China and 72-hour delivery to the

rest of the world. At present, Cainiao has reduced cross-border shipping times from an average of 70 days to less than 10 days for some countries.

Within China, Cainiao’s single-day and secondday delivery now covers 1,500 counties and districts.

Cainiao’s smart network should push logistics

costs, which currently comprise about 15 per cent of China’s gross domestic product, down to under 5 per cent. He noted the figure is around 7 per cent to 8 per cent of GDP in countries with more-developed logistics systems.

“If we can use data to solve the problem of low transport efficiency and high logistics costs, we can create huge profit margins for the manufacturing industry and logistics sector.

I think this is what Cainiao and our logistics industry should do for the country,” Ma told an audience at a Cainiao event in Hangzhou.

“This network was established by Cainiao, but it doesn’t belong to Cainiao. It belongs to all logistics companies. Logistics companies are Cainaio’s most important partners … we need to provide our partners with core technology and core products to make our logistics partners stronger,” he added.

Unilever tops Gartner’s 2018 Supply Chain Top 25 list Gartner has released the results of its annual Supply Chain Top 25, identifying supply chain leaders and highlighting their best practices.

Analysts announced the results at the Gartner Supply Chain Executive Conference.

“2018 is the 14th consecutive year, we are publishing the Supply Chain Top 25 ranking,” Stan Aronow, Research Vice President at Gartner said.

“The ranking consists of an impressive group of leaders with valuable lessons to share, including

three recent entrants from the life sciences, retail and consumer products sectors.

“Looking back at 2017, we experienced a year of healthy growth, despite heated trade rhetoric,” said Mr. Aronow. “Now, in 2018, protectionism is spreading in response to announced moves by the U.S. and the U.K., among others. This has led many organisations to re-evaluate the location strategy for their supply networks. We also see strong growth constraining available supply in

many geographies, increasing the cost of logistics and labor. The most advanced supply chains are proactively managing these risks and continue to post solid performances.”

Unilever scored the top spot for the third year in a row, followed by Inditex, Cisco, Colgate-Palmolive and Intel (see Table 1). Home Depot rejoined the ranking after a three-year hiatus, while Novo Nordisk and Adidas joined the Supply Chain Top 25 for the first time.

Nestlé and XPO Logistics to build digital warehouse of the future Nestlé and XPO Logistics are co-creating a 638,000-square-foot digital warehouse of the future. The facility will be occupied predominantly by Nestlé for its consumer packaged goods and will function as a testbed environment for XPO technology prototypes prior to global release.

The custom-designed distribution centre, scheduled to complete in 2020, will feature advanced sorting systems and robotics alongside state-of-the-art automation co-developed with Swisslog Logistics 14 | Logistics&MaterialsHandling August/September 2018

Automation. The site’s digital ecosystem will integrate predictive data and intelligent machines to deliver one of the most advanced distribution management centres in the world, giving consumers faster, more efficient access to KitKat, Maggi, Nescafé and other muchloved Nestlé brands.

The XPO-owned facility will be strategically located in the UK to benefit from direct access to the main motorway for road transport, the East Midlands Airport for cargo flights, and an onsite rail freight terminal with direct

access to the major UK ports of Southampton, Felixstowe, London Gateway and the Channel Tunnel.

Nestle and XPO are to build a customdesigned distribution centre.

Global News

Emirates SkyCargo signs MoU with Cainiao Network to use Dubai as a hub Emirates SkyCargo, the freight division of Emirates, has signed an MoU with Cainiao Smart Logistics Network Ltd., the logistics arm of the Alibaba Group, to jointly facilitate the delivery of cross-border parcels as

Cainiao looks to expand its global logistics infrastructure with Dubai as a hub.

The MoU was signed by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Xiaodong Guan, General Manager

Emirates SkyCargo and Cainiao will work closely to manage e-Commerce shipments in the Middle East.

of Cainiao Global Business at Cainiao’s global headquarters in Hangzhou.

Under the terms of the MoU, Emirates SkyCargo and Cainiao will work closely to manage e-Commerce shipments in the Middle East and other neighbouring regions through Dubai. Further details of the tie-up will be announced progressively as they are developed by the two parties.

“We are delighted to be entering into this agreement with Cainiao. The MoU that we have signed today is the first step in what will be a deep and fruitful relationship between Emirates SkyCargo and one of the biggest players in the global e-commerce supply chain,” Mr. Nabil Sultan, Emirates Divisional Senior Vice President, Cargo said. “With Emirates SkyCargo’s network spread, frequency of flights including close to 50 weekly flights from China, our state-of-the-art hub facilities and the strategic location of Dubai which allows it to serve as an effective logistics hub for the region, we are confident that we will be a strong partner for Cainiao to bring an enhanced experience to their customers in the Middle East and neighbouring regions.”

“As a key gateway that links Asia and Europe, Dubai is well positioned to help us achieve our goal of 72-hour global delivery. The MoU with Emirates SkyCargo is another milestone to reach this goal,” Xiaodong Guan, General Manager of Cainiao Global Business said. “We have a strong commitment to Dubai and the neighbouring markets. This fits well with our broader strategy.”

VALUABLE EXPERTISE. VISIONARY SOLUTIONS. logisticsmagazine.com.au

logisticsmagazine.com.au | 15

Cover story

A licence to operate LMH speaks with Caryn Anderson, Executive General Manager Strategy and Business Development at Port of Melbourne, about the future plans of the Port and why the port’s location gives it the competitive edge.

T

he Port of Melbourne is Australia’s largest maritime logistics hub and a key economic asset for Victoria’s businesses and people. The Port will play a crucial part in the projected growth for Melbourne and Victoria.

The Port’s objective is to deliver a safe, responsible and reliable port facility and to play its part in delivering the efficient supply chain needed to support Victoria’s growing economy.

Logistics & Materials Handling spoke with Caryn Anderson, Executive General Manager at Port of Melbourne about the journey the port has taken through privatisation, challenges for the future and the importance of working together.

Pathway to ports For Caryn, a route to a career in logistics was largely unplanned. “I’m not sure anybody sets out to work in this sector,” she says. Like many professionals in the sector, Caryn fell into the industry by accident.

16 | Logistics&MaterialsHandling August/September 2018

With a background in Marine Science Caryn started in an environmental management role and it was here that she was exposed to the ports environment. She soon realised how exciting and dynamic logistics can be.

Next, Caryn did a law degree, specialising in international maritime law when an opportunity arose to work overseas directly with the shipping industry. “This was an exciting opportunity for me to see a different perspective and I think having a scientific background has allowed me to draw together all of the different elements – finding patterns and simplicity through it all is part of the challenge,” she says.

Caryn’s role is largely around coordination, planning and strategy. “There’s lots of moving pieces, and we are fortunate to have a a great team who are technically competent and passionate about what they do – this helps us to keep across the diversity of issues,” Caryn says. A stand-out advantage for Caryn is that every day is different in logistics. “One day you will be dealing with a

farmer who is growing purple carrots to export to Japan, the next day you could be dealing with the Minister’s office and the next day a wharf carrier — it’s fantastically diverse and it keeps it real,” Caryn says.

Planning roles can quickly become very abstract, but in Caryn’s role at Port of Melbourne this is not an option. “This position gives me the opportunity to be quite hands on and to work with industry to identify real solutions instead of a situation where everything looks good on paper but if you go down to the port and talk to the carriers, they tell you a different story. We are keen to make a difference and drive real efficiencies for the businesses that use the port” she says.

Privatisation In 2016, the Port of Melbourne’s commercial operations and assets were leased by the Victorian Government and Caryn played a key role in this process. “I was involved in the original scoping study when the government was considering

Cover story privatisation. I was then the lead responsible for leading the transaction internally and separating the business in preparation for financial close,” she explains.

The privatisation was a lengthy and complicated process, but this was all part of the end goal. “I think one of the really good things about the time it took was that it was well-debated and considered by both sides of government. This meant that we ended up with a contractual arrangement as a private port manager that is strategically aligned with what’s in the best interest of Victoria. This is fundamental to what we do because we are serving the people of Victoria. When Victoria does well, our business does well.” She adds this was the really rewarding part of the privatisation process, to see how well structured it was.

Another important factor is that the Port of Melbourne shareholders are all long-term investors. “They are focused on long-term value of the port and in the context of a port this means infrastructure planning across a 30-year plus horizon. It’s about positioning for the collective success of the port freight supply chain over the longer term,” Caryn says.

Preparing for growth Melbourne’s population growth is projected to grow substantially, reaching five million by 2021 and soaring past eight million by 2050 according to Plan

Melbourne report. This has significant implications for the port. “The port reflects what is happening in the Victorian economy, trade across the wharf is a lead indicator of economic activity,” Caryn explains.

“Over recent years we have seen growth rates around 3 per cent and have forecase around 3 to 4 per cent going forward. However, the trade volumes that have been passing through the port year to date are sitting around 8.5 per cent, from a compound growth perspective, changes like this can move us past our planning capacity and bring forward our infrastructure considerations. The big challenge for us, like any demand and supply model, is forecasting what the demand is going to be and population growth will have a significant input into this,” she says.

Caryn is aware that the port cannot act alone and much of preparing for growth is dependent on external factors. “Like any organisation, we have plans in place in terms of how we think infrastructure might be delivered. We are continuously monitoring our key drivers for growth, innovations across the supply chain and commercial arrangements – all of which will influence the infrastructure that is ultimately delivered. We view the logistics supply chain as a system which is slightly more challenging because it means we are talking about shared infrastructure across the supply chain, this investment tends to be “lumpy” and has long lead times. The other

challenge is structuring an appropriate business case to finance investments within this type of a model – but we can’t get caught off guard in terms of delivery time,” she says.

Caryn also sees this population growth as a great opportunity for the Port of Melbourne.

“The rate at which the population is growing has an important implication for the city and how it works, how freight and logistics is integrated to service the city needs and the role of the port is an exciting opportunity,” she states. Historically, the conversation was often about moving the port out of the city, but now with a 50 year lease, Caryn believes that as population grows there is an opportunity to leverage the port’s city centre location. “When you think about how much growth is going to occur within and around the CBD, the location of the port could actually be one of the greatest opportunities for the future liveability of the city of Melbourne.”

According to Caryn, this is the kind of opportunity that calls for communication and collaboration between all the stakeholders and operators across the supply chain, a cause that she is passionate about. “It’s how we coordinate with the State Government and the Commonwealth around the infrastructure priorities that ensures the unprecedented investment we are seeing in infrastructure delivers real benefits to users and the economy more broadly,” Caryn says.

logisticsmagazine.com.au | 17

Cover story Port activity The Port of Melbourne has a rich history with the people of Melbourne. “One of the really interesting things around ports is what’s coming through the port is a lead indicator of what’s happening in the economy,” Caryn says. This is clear when looking at the data of the items that are moving through the port.

Over the last couple of years there has been significant growth and strong performance in new furniture. Caryn explains that this is a reflection of all the new residential developments that are going on in Victoria as well as a reflection of increased migration. There is also representation of responses to changes in global regulation, such as the recent Chinese regulations around recycled paper exports.

A licence to operate Caryn says the Port of Melbourne sees itself as custodian of the port and one of the most important aspects of her role is integrating effectively with the city. “The Port of Melbourne is a critical economic asset to the State Government and I think it’s important that we start at that position and then look at how we work with our neighbours and community to make sure that the port can continue to grow and service the economy, while also recognising the growth and development in our neighbouring communities,” Caryn says.

Working with the neighbouring communities is not without its challenges. One particular challenge is that the Port of Melbourne has four different local governments to work with.

As is often the case when dealing with a number of stakeholders in one area, there are different objectives.“What we need to be doing more effectively is connecting what our economic Port of Melbourne’s holds a unique competitive position in that it has a central location to the city of Melbourne.

18 | Logistics&MaterialsHandling August/September 2018

drivers are, we need to talk in a more holistic sense, while also protecting the port and key freight corridors from residential encroachment,” Caryn says.

Within the Port of Melbourne there is a team that spends a lot of time reviewing planning applications which are within close proximity to the port. The team considers the sensitivity of certain developments to current and future port and freight operations. “We need clear expectations from the community in terms of what is allowable in close proximity to the port, while there are many complementary activities, there are also fundamental incompatible land uses such as freight corridors alongside residential and pedestrian activity,” Caryn explains.

Port of Melbourne is actively working with local governments to identify areas for growth and development within close proximity to the port and to balance the different objective to achieve the best overall outcome. For Caryn, there has been significant effort in putting planning controls in place that protect the port but there is an opportunity to work more closely with the State and local government to uphold those protections and plan responsibly for public safety and amenity and economic growth.

Raising awareness A common issue across all logistics modes is raising awareness and interest in its activities from the public. One issue that is relatable for Caryn. “Until I worked in a port I didn’t realise that it existed, it was just one of those things that was just there.”

The Port of Melbourne is working directly with the community to raise awareness, finding that when major developments take place people become more aware of the port’s existence and

For Caryn Anderson, General Manager, Port of Melbourne, there is an opportunity to invite the public back into the port.

start to think about freight and logistics. “There are a lot of people who are interested in what is happening at the port, but since the security requirements came into place it means in many respects the public has been excluded from the activities and operations at the port,” Caryn says.

She believes there is an opportunity to invite the public back in and the Port of Melbourne has been working with the community to find ways to connect. They are involved with Open House Melbourne and use it as an opportunity to ignite interest in what goes on at the port, as well as organising regular public boat tours.

Competitive edge For Caryn, the Port of Melbourne holds a unique competitive position. “For us, it’s about the whole supply chain, that’s where our focus is. We see ourselves playing a role across the total supply chain,” she says.

While responsible for the infrastructure and assets in the port, the Port of Melbourne also plays a role across the supply chain to ensure its efficiency. Caryn notes that the port spends a lot of time working with individual supply chain participants to find out how they can work together to improve efficiencies to give Victoria that competitive edge.

Caryn says this is an exciting time for the future of logistics. “Over the last decade, we’ve seen huge advances in the availability and transparency of data, we are seeing completely different business models forming. This is a great opportunity to look at how we do things differently. If we think differently about how we might facilitate freight and logistics for the city and how we might design our infrastructure to make that work more effectively we have a huge opportunity here in Melbourne.”

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Innovation

The rise of the parcel locker What if you could make a home delivery in seconds, at any time in the day, while also reducing last-mile delivery costs? LMH looks at the potential of the parcel locker logistics solution.

A

s demand for online shopping continues to grow, consumers are looking for more efficient ways to receive parcels. Customers are now ordering items from anyone, anywhere at any time. Whether it’s phone chargers from China, books from Britain or fresh produce from the local grocery store online shopping is now the norm.

Australia ranked second in the world for online shopping growth, according to the Inside Australian Online Shopping eCommerce Industry Paper, and the consumer now wants the convenience of a parcel delivered effectively after purchase, not a notice, a requirement to visit a depot or an option for a separate delivery slot.

With so many items now being ordered online, most people’s mail consists of more parcels than letters. Volumes of addressed letters at Australia Post have fallen 36 per cent in the past seven years. In 2015, for the first time in its history, Australia Post’s parcel business contributed more than half of its total revenues.

Many customers aren’t at home at the time when deliveries are scheduled to receive parcels and it is becoming increasingly frustrating to have other aspects in the supply chain, including sourcing, packing and distribution, run efficiently and effectively to then be faced with a lengthy and inconvenient aspect. Particularly once the parcel has, in theory, reached the customer’s home.

One option is to leave the parcel in a ‘safe place’, but this is problematic for both the consumer, retailer and logistics company. Who is at fault is it if a parcel goes missing from a consumer’s home? Who pays for parcel theft?

Is it the logistics provider or the retailer? What happens if the consumer is lying about whether the parcel ever arrived? What about weather conditions? Valuable objects?

The relationship with the consumer and retailer can be tarnished when a customer has a bad delivery experience, an astonishing 38 per cent of US consumers would elect to withdraw their loyalty from a retailer again following a bad delivery experience according to MetaPack’s Delivering Consumer Choice report. The importance of getting this last part of the transaction right is a top priority for many shoppers.

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A solution to many of these issues could be the parcel locker. Parcel lockers are automated storage systems that can securely store packages for consumers at their homes. They reduce the risk of parcel theft, re-delivery attempts and lost packages. They have many benefits for the consumer as well as increased transparency and reliability for logistics providers.

The big players in the logistics industry are developing solutions in this space, with Amazon launching Amazon Key, a service that allows Amazon couriers to open the front door and put the package safely inside the home. DHL has also trialled delivering items straight into a customer’s car. Though recent developments may mean that one day goods are delivered straight into your home. David Jinks,

Innovation

“The locker is the most convenient option for hard pressed consumers who can’t afford to take time off to wait for an important package.”

David Jinks Head of Consumer Research, ParcelHero

Head of Consumer Research at ParcelHero, an online courier company, believes that right now it’s all about the parcel locker. “The locker is the most convenient option for hard pressed consumers who can’t afford to take time off to wait for an important package. Couriers and retailers who fail to embrace the growing move to parcel lockers will lose out significantly,” David says.

Though in many respects, last-mile delivery is a difficult challenge to tackle, there is a number of innovative developments taking place in Australia in the personal parcel locker space.

Australia Post has developed its own parcel locker offering, with a product called Receva.

Receva is a water-resistant mailbox Australia Post claims is designed to accommodate parcels, groceries and wine boxes.

The box, which launched in October 2017 with a trial in Melbourne, is connected to the internet and managed via a smartphone.

According to Australia Post, it eliminates the risk of items being stolen or damaged by the weather if left unattended for too long. The mailbox gives customers full control through a smartphone, enabling them to receive instant delivery notifications, monitor the temperature and battery levels of the box and allow others to access it digitally.

“The trial in Melbourne’s south east was met positively by customers. This was largely due to the greater choice, security and control in the way they received their mail and parcel deliveries,” Tien-Ti Mak, Innovation Partner at Australia Post says.

Though Receva is designed to work with any carrier or courier, at present it only receives parcels from Australia Post. An issue which Malcolm Lewis, Owner and Founder of a rival Australian-made product called Chester says is problematic. “Receva requires a key dongle that can currently only be used by an Australian Post representative,” Malcom says.

“My main reason for setting up Chester is that I have a deep concern about closed hardware, in my view the hardware associated with these kinds of solutions should be open source, it should be open infrastructure,” Malcolm explains.

The idea for Chester came while Malcolm was working in the US. He and his wife realised they were never home to get deliveries. He says Chester’s key functionality is that its natural state is unlocked. “It doesn’t require any integration with a carrier or logistics provider.

The box is open and then when a delivery is logisticsmagazine.com.au | 21

Innovation

Chester has a volume of 125 litres and has ice pack compartments for fresh produce.

placed in the box it sends a notification to the consumer via an app, let’s them know that they have a delivery, how much it weighs and at what time it was delivered.”

As well as increased convenience and transparency for the consumer, Malcolm

Once a delivery is received, Chester sends a notification to your phone.

22 | Logistics&MaterialsHandling August/September 2018

believes this also has significant benefits for the retailers and logistics providers. “The data can be invaluable for businesses, with Chester they have proof of delivery,” he says.

Malcolm says that the two-hour delivery window is proving too expensive for many

logistics carriers and he notes that the consumer isn’t necessarily concerned with speed, but the real issue is the waiting around.

“People want transparency, they want to know where their parcel is and where and when it will be delivered,” Malcom says. With Chester, the consumer has transparency and access to information about their delivery and the logistics provider is also able to deliver more parcels in less time without ambitious, expensive and specific two-hour delivery slots.

The product is at prototype stage at the moment, and Malcolm is hoping it will be launched before Christmas this year. “During the research stage, people wanted something that was battery powered, that could receive a delivery from anyone and that looked nice,” he says.

Chester has a volume of 125 litres and has ice pack compartments so that fresh fruit and veg can also be delivered. According to Malcolm, he has spent a lot of time developing a product that he thinks will fit with the aesthetic of a house, has multiple uses and can be accessed by any courier. Details about pricing are yet to be decided but Malcolm ensures that it will be affordable and is aiming for a one-off purchase situation.

With last-mile delivery customers are looking for convenience and reliability and providers are looking for ways to cut costs and increase efficiency. Parcel lockers are a growing option in this area with a number of home-grown developments worth watching.

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Technology

A new era for 3D printing With additive manufacturing set to majorly disrupt most industries, it will have a substantial impact on logistics and the design of supply chains. LMH was on hand to report on the launch of the world’s fastest and largest 3D printer.

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he revolution of 3D printing has been transforming many industries, with recent developments in aerospace, manufacturing, health and even the food industry there isn’t an industry untouched by the technological development of additive manufacturing.

It was recently announced that the world’s first 3D printed homes would be built in a town in the Netherlands and there have also been many news reports of other impressive developments. Machines are becoming increasingly capable of printing, cooking and serving food items such as a burger, as well as major developments in the health industry

24 | Logistics&MaterialsHandling August/September 2018

“If we look at the metals industry, I like to joke that it started 5,000 years ago. Nothing has really fundamentally changed in those 5,000 years. But today is a pioneering moment.”

Jeff Lang, CEO, Titomic

including, which even include 3D printed prosthetic limbs.

The Logistics Trend Radar, published by DHL, cites an annual growth rate of 13.5 per cent for additive manufacturing. As

logistics is an industry that is primarily about moving products from one place to another, developments in 3D printing will change the way the industry works has to think and function.

Technology

Titomic has launched the world’s largest and fastest 3D printer.

This technology is gaining significant traction and beginning to shape the future of many industries, including the logistics industry and the supply chain at large.

Though originally used in the aerospace and manufacturing industry as a way to create small parts and prototypes, it’s evident that as 3D printing advances, there will be increasing demand for items to be printed on-demand, on-site and to order.

The possibilities for the future of 3D printing are limitless, including 3D printing human cells, artificial skin and even artificial ears.

However much of the processes used makes it difficult for mass production in terms of process time it cannot compete with large-scale manufacturing times as well as the inability

to produce larger scale items and parts needed in many industries. This is where Melbournebased additive manufacturing company, Titomic is offering what it believes is a revolutionary new process for 3D printing.

The world’s largest and fastest 3D printer At an event in May this year, Titomic launched the largest and fastest metal 3D printer.

Philip Vafiadis, Chair and Non-Executive Director at Titomic told attendees that the machine will redefine the size of 3D systems using a revolutionary method that has never before been realised. “We’ve been waiting for decades to deliver this dream and what we are delivering today is more than a machine,

it is a capability that will revolutionise the manufacturing industry for decades to come,” Philip says.

“If we look at the metals industry, I like to joke that it started 5,000 years ago. Nothing has really fundamentally changed in those 5,000 years. But today is a pioneering moment,” Jeff Lang, CEO, Titomic says.

A self-confessed tech-nerd, Jeff says that this is an idea he has been working on for ten years and he is thrilled to finally present it to the industry.

Kinetic fusion According to Jeff, as the process used for typical 3D printing involves heat, this presents a series of problems, particularly when trying logisticsmagazine.com.au | 25

Technology

to develop the process for a larger scale projects.

The heat used to mould and print the material produces oxidation, which means that the product must be contained in a glass box, leading to size limitations. In addition to this, expansion and contraction caused by heat can lead to morphing as well as process that is slow and only suitable for small-scale projects.

The theory behind Titomic’s alternative offering is kinetic fusion. Though this is similar to current 3D printing processes in that objects are printed layer by layer, it is different in that a jet stream is created to shoot out the metal at such a speed that it fuses onto a mould plate. The particles travel at supersonic speeds, making the particles soften and then they are caused to mould together through fusion.

As this process does not require any heat, there is no limitation on size. “The only limitation we have is noise, the machine can get up to 140 decibels, but as this is a cold process, we don’t get distortion or have to contain the product in a glass box,”, Jeff says. According to Jeff, the capabilities go beyond what was ever possible before, with a build-speed of 45 kilograms per hour compared to industry standard of 1 kilogram in 24 hours.

Sustainable manufacturing for future generations Having the largest and fastest 3D printer isn’t the only benefit of Titomic’s kinetic fusion.

Jeff Lang, CEO, Titomic, (centre) talked with guests at the launch event.

26 | Logistics&MaterialsHandling August/September 2018

The printer was unveiled at a launch event in Melbourne.

For Jeff, it also has sustainability benefits.

“The smarter way we use resources is critical and here we are creating new knowledge,”

he says. With additive manufacturing, you print what you need, so there is much less waste. According to Jeff, as we have limited resources, this is an advantage that will be crucial in the future. The Titomic process boasts less than 10 per cent waste.

At the launch event the word ‘Titomic’ was printed on a metal plate. This was the very first showcase of how the technology works in real time. Jeff also showed a bike frame that was printed in less than 30 minutes and spoke of the potential this technology has for all industries. “Our vision includes this technology being used in ship yards, mining locations as well as used within the aerospace sector. There is also more consumer-based applications such as the ability to print bike frames and luggage,” he says.

For Jeff, one of the most exciting aspects of this is the creation of new knowledge.

“This is the next generation of digital manufacturing; this knowledge is filtering down into TAFE and trade level and preparing the professionals of the future for change.

We’re talking about smart tech here and you can technically run the whole system on a mobile phone.”

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Women in industry

Celebrating success The fifth annual Women in Industry Awards was held in June in Sydney.

The awards bring together leaders across Australia’s industrial sector to celebrate the achievements of women working in these areas.

T

he Women in Industry Awards aim to raise the profile of the women working within the mining, engineering, logistics and road transport industries as well as promote and encourage excellence. Here LMH speaks with VISA Global Logistics’s Federica Guidi, who was awarded Business Development Manager of the Year.

The path to success Federica’s role at VISA Global Logistics is her first in the logistics industry. “For many people, they start in logistics very early on and work their way up, this was not the case for me,” she says.

While working at the Italian Chamber of Commerce Federica worked closely with board 28 | Logistics&MaterialsHandling August/September 2018

member Vittorio Tarchi, Executive Director at VISA Global Logistics Group. It was during this time that Federica was exposed to the logistics industry and Vittorio proved a great mentor. “I was very impressed with his leadership skills and knowledge of the logistics industry in general,” Federica says.

Eight years ago, an opportunity rose for Federica to join VISA Global Logistics in the events and marketing space, and she jumped at the chance to move into the logistics sector.

After only a few months Federica moved into a sales position and hasn’t looked back since.

“Sales here is very dynamic, you can be working with small to medium enterprises locally but also huge international companies, there is never a dull moment,” she says.

VISA Global Logistics delivers a fully

Women in Industry recognises leaders within the mining, engineering, logistics and road transport industries.

integrated solution which includes forwarding, clearance, warehouse and distribution. Founded in 1892 VISA Global Logistics is privately owned, it functions with two directors and two partners, one director is Australian and one is Italian.

The international presence of the company enables Federica to travel extensively. “I go to Europe at least once a year to link international opportunities together and to seek out prospective clients,” she says.

The importance of mentoring For Federica, having a mentor is crucial, particularly in the logistics industry.

“Throughout my career I have had very good mentors to help me along the way. Without which, navigating your way through this

Women in industry

2018 WOMEN IN INDUSTRY AWARD WINNERS Excellence in Road Transport Oxford Cold Storage Transport Manager, Jacquelene Brotherton

Safety Advocacy Award (sponsored by BOC) Monier Roofing People & Safety Manager, Juliet Maynard

Social Leader of the Year Arizona Holdings Manager – Brand & Sponsorship, April Whittam

Mentor of the Year (sponsored by CSR) RMIT University Senior Educator, Gita Pendharkar

Rising Star of the Year (sponsored by Atlas Copco Compressors) CSR Property Development Manager, Allison Basford

Excellence in Manufacturing The Low Carb Living Group Founder, Anna Hopkins

Business Development Manager of the Year (sponsored by Manark Printing) VISA Global Logistics Global Sales & Business Development Manager, Federica Guidi

Excellence in Mining BHP Olympic Dam Asset President, Jacqui McGill

Industry Advocacy Award (sponsored by COG Advertising) Australian Innovative Systems CEO, Elena Gosse

Excellence in Engineering Australian Institute for Nanoscale Science and Technology Theme Leader – Computing, Communication and Security, Xiaoke Yi

For Federica, working in logistics is more diverse than other sectors. “It’s different to any other sector I have worked in, we work with all kinds of companies and all different commodities. One day it’s medical equipment, then it’s lollies or white goods. In addition, you deal with various stakeholders. it’s very dynamic and it’s this aspect that keeps me enjoying my job every day,” she says.

Looking to the future As VISA Global Logistics continues to grow, so does Federica. “In this position, there is a lot of networking, events and seminars. I really enjoy this side of the role as I am always learning,” she says.

“In business development, you can always achieve more, you have to find ways to keep growing and learning,” Federica explains. At VISA, she has found the senior management team very approachable and that they are always happy to help.

Frederica Guidi won Business Development Manager of the Year at the recent Women in Industry Awards.

industry would be impossible,” she says.

Vittorio’s guidance as well as the greater team at VISA, have been key factors in her success. “Logistics is very fast-paced, it doesn’t sleep. Especially when you run a global operation. You need a good, reliable, trustworthy and passionate team, and I have found this at VISA,” Federica says.

This passion for mentoring has been something that Federica has been able to pursue in her role at VISA. In her position, she looks after the internship program. VISA

organises an internship program for students from the Maritime & Transport University in Italy. The students come over to Australia and partake in a program where they work for six months and then travel for six months. “It’s a fantastic opportunity for them to get some practical working experience as well as see Australia,” Federica says.

This aspect of Federica’s role is very rewarding and gives her an opportunity to share her passion for logistics as well as what she describes as a beautiful working culture at VISA Global Logistics.

VISA places a huge emphasis on professional development and even has what it refers to as VISA University, a programme to train staff internally. Federica is also due to start an MBA in July this year. “I am always looking for new opportunities to grow, to keep up with innovation and to tackle new markets,” she adds.

On winning the Business Development Manager of the Year award, Federica said it’s great to feel gratification for what she does. “I was very excited to win, it was quite unexpected.

It’s fantastic to get acknowledgement for all the hard work, all the extra effort you put in. It’s very rewarding and I am looking forward to growing on the success.” logisticsmagazine.com.au | 29

ALC Column

FORTUNE FAVOURS THE PREPARED Michael Kilgariff Managing Director Australian Logistics Council

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his year has already witnessed several key milestones on the journey towards the development of Australia’s firstever comprehensive Freight and Supply Chain Strategy.

These have included two days of industry discussion and debate at ALC Forum 2018 in March, which allowed industry participants to consider the next stage of the Strategy’s progress, moving beyond considering what it needs to contain and addressing the more complex question of how it can best be implemented.

30 | Logistics&MaterialsHandling August/September 2018

This was followed by the inaugural ALC Supply Chain Technology Summit, held in Melbourne during May. The Summit permitted a detailed focus on how technology and data are rapidly transforming the way this industry operates, and identified opportunities to enhance both the quantity and quality of data available to drive enhance supply chain efficiency and safety.

The month of May also saw the release of the Final Report of the Inquiry into National Freight and Supply Chain Priorities, which identified key actions required to develop an effective Strategy, and set out recommendations across a number of critical action areas that will need to be pursued if Australia is going to meet its growing freight task.

At the meeting of the Transport and Infrastructure Council (TIC) in Darwin on 18 May, Commonwealth, state and territory Ministers agreed to work together to develop the Strategy, for presentation to the TIC meeting scheduled for May 2019.

Accordingly, ALC will continue to play its role as an industry leader in ensuring the momentum continues, and the Strategy that emerges

is one that effectively addresses the needs of the industry.

As part of that effort, on 27 June ALC released Laying the Foundation – the first in a series of discussion papers designed to ensure the Strategy is implemented effectively.

The discussion paper was released during ALC’s annual Parliamentary Event, with Federal Ministers, Shadow Ministers and parliamentarians from across the political spectrum in attendance.

Laying the Foundation matches outcomes from both ALC Forum 2018 and the ALC Supply Chain Technology Summit to industry priorities set out in the Inquiry Report. As a result, ALC has identified nine specific actions the Federal Government can pursue immediately – ahead of the release of the Strategy in May 2019.

Undertaking this preparatory work now will ultimately allow the Strategy to be implemented more effectively upon its completion.

Why is the strategy important?

The National Freight and Supply Chain Strategy now being developed by the Commonwealth Government, in cooperation with state and territory governments, is the single most comprehensive national effort ever undertaken to enhance national supply chain efficiency and safety.

It will significantly build on the National Ports Strategy and National Land Freight Strategy, which were released in 2012.

It comes as a number of pressures are combining to exert significant pressures on Australia’s existing freight networks.

These include rapid population growth, the disruptive impact of rapidly

ALC Column

evolving technologies, a burgeoning middle class in developing nations with an appetite for Australia’s high-quality export goods, and changing patterns of consumer behaviour which see Australians sourcing products globally and expecting speedy delivery.

Yet, in the fact of this shifting reality, much of the regulatory framework shaping our freight networks remains mired in the past. The pace of policy reform has slowed since the beginning of the century, productivity growth has stagnated and Australia’s international competitiveness has fallen, relative to other comparable economies.

As the Report of the Inquiry into National Freight and Supply Chain Priorities observes: “Many of the priorities in this Inquiry Report address issues that are well known and have been identified in previous work but they have not been previously addressed. Governments need to take a leadership role and take immediate action.”

ALC concurs with the view that there are opportunities for immediate action across several key areas which are explored in Laying the Foundation.

Clear responsibility for implementation The implementation of a National Freight and Supply Chain Strategy is a complex exercise, which will call upon the skills and expertise of talented individuals. ALC has consistently maintained that there must be a body which has clear responsibility for implementing the Strategy upon its completion.

For that reason, Laying the Foundation recommends establishing a dedicated Freight and Supply Chain Unit within the Department of Infrastructure, Regional Development and Cities immediately.

It also recommends the new unit be immediately be tasked with establishing a data gathering and performance review mechanism that measures and reports the performance of key freight routes and interfaces at freight terminals.

This is to help address the paucity of data that is currently available in relation to the operation of Australia’s supply chains.

Data is ‘the new oil’ Given the widespread industry agreement that data is ‘the new oil’, and that enhanced supply chain performance will depend heavily on technology, improving the quantity, quality and consistency of data pertaining to our supply chains must be an immediate priority.

This is not merely important for management of supply chain performance, but also to help the freight logistics sector strengthen its ‘social licence’.

Although industry participants understand the centrality of the freight logistics sector to Australia’s economic success, that understanding is not necessarily shared by other decision-makers or the public at large.

If freight movement is going to be accorded the priority it needs and deserves in national policy-making, then a great deal more must be done to build community recognition of the importance of supply chain efficiency in day-to-day life.

Many participants at ALC Forum expressed frustration with the fact that, generally speaking, consumers do not make the connection between the trucks they see on the road and the goods they buy off the shelves.

There is a continuing clash between residential and freight interests - and residential interests generally win out, because that’s where the votes are.

The lack of data about supply chain performance referred to elsewhere in this document also contributes to this lack of general awareness.

It is difficult for industry to make the case to governments for reform and investment when there is a paucity of information about the overall economic contribution the sector makes.

To help build this evidence base, Laying the Foundation recommends that the Commonwealth Government directs Budget funds already appropriated for implementation of the Strategy towards ensuring the Australian Bureau of Statistics (ABS) is able to complete the establishment of a transport satellite account by October 2018.

This would permit the measurement and reporting of the value of freight transport to the economy through key national accounts

metrics, including information regarding the industry’s size, it contribution to GDP and the number of persons it employs.

Modernising regulations Laying the Foundation also makes the case for modernising key elements of the regulatory framework around freight transport, so that recommended changes can be implemented at the same time as the Strategy.

This includes commissioning an independent review of the rules around over size and over mass (OSOM) vehicle movements, and identifying opportunities to streamline the approvals system.

OSOM vehicles are commonplace in some of Australia’s most important export industries, including the mining/resources and agricultural sectors, as well as in construction.

Significant delays to the movement of goods and equipment in these sectors are having a deleterious impact on Australia’s overall economic performance.

The discussion paper also calls for the Federal Government to review and amend regulations that prescribe specific freight aircraft types that may operate during airport curfew periods, and instead permit the operation of any aircraft that meets an agreed noise standard.

This will ensure regulations are focussed on achieving outcomes, and allow industry participants to take advantage of rapid improvements in aircraft noise technology.

Finally, Laying the Foundation urges the Federal Government to bring forward the forward the proposed 2019 Productivity Commission review of road and rail operating frameworks to this year, with a focus on productivity, harmonisation of standards, safety and regulation.

As part of this review, ALC also recommends that the Government specifically requests the Productivity Commission to examine mandatory telematics and National Operating Standards as part of this review.

These measures will not only enhance productivity, but will also be important to achieve better safety outcomes throughout the industry. logisticsmagazine.com.au | 31

Profile

Representing a nation Entrepeneur Urszula Kelly sits down with LMH to talk through her journey to starting her own logistics business in Western Australia.

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fter being awarded the Young Professional of the Year Award at the CILT National Excellence in Transport and Logistics Award in Australia, Urszula Kelly, Managing Director at UC Logistics has been representing Australia on a global platform around the world.

While in Poland representing Australia at The Chartered Institute of Logistics and Transport’s international convention, Urszula took time out of her busy schedule to speak with LMH about her journey to where she is today and why she is passionate about safety and the Chain of Responsibility.

Starting out Urszula,a Polish immigrant to Australia in 2012, launched her career in logistics in the UK in 2007. Initially working in a supportive role in the industry, Urszula looked for a more direct role within logistics and became hooked.

Her first logistics role was administration support for Liquid Logistics. From 2008 to 2011 Urszula was the Transport Coordinator for Gerber Juice. In this role Urszula facilitated timely scheduling and monitoring of deliveries with national and international clients, including extensive liaison with the materials planning department, accounts, warehouses,

production and laboratories.

After this position, Urszula worked for Robert Wiseman Dairies as a Distribution Supervisor, where she managed the picking and loading of up to 60 deliveries daily for key clients. She managed a team of 40 staff and oversaw all compliance and safety obligations, including inspections, reporting, corrective actions and continuous improvement initiatives.

A move Down Under After making the decision to move to Australia, it took Urszula three days to find a job. She began her career in Australia by working for a

For Urszula, training is an important factor of safety.

Xxx 32 | Logistics&MaterialsHandling August/September 2018

Profile

family-owned business in Western Australia as a Project and Contract Coordinator. In this role, her key responsibilities included client liaison, management of relevant legislative requirements and safety obligations as well as oversight and effective collaboration of subcontractors to ensure adherence to corporate policies and procedures.

“This was a great first role in Australia, it was a small family business and the people were fantastic. There was so many opportunities to grow,” Urszula says. However, as the business owned the trucks and trailers, there was often more demand than the company could provide for. With this in mind, Urszula decided to start her own business. “I thought to myself: how can I make a business model to accommodate these needs?,” she says.

She had the vision of creating a business that could always provide, however big the demand and soon recognised that she couldn’t do this by buying all the trucks she needed. Instead, she created UC Logistics, now a leading third-party logistics provider in Western Australia. “The difference is, we don’t have to go around buying the trucks and trailers, we can engage someone else’s services for that depending on the demand,” Urszula explains.

UC Logistics started in November 2015 and established two major mining contractors as its primary point of contact for all transport requirements early on.

Urszula soon developed a new tool called iFR8. iFR8 is an online B2B platform that allows customers to quote and book freight movements. It handles the entire process from start to finish through one central technological portal. It ensures that customers don’t have to speak to numerous suppliers to quote for the long Australian jobs. “We used to have a really lengthy process, but we created a platform that generates an automated quote upon request,” Urszula explains.

This aspect of the business requires the owner drivers to be accredited to the National Heavy Vehicle Accreditation Scheme (NHVAS), as safety is a must-have principle for Urszula.

Chain of Responsibility A particular passion of Urszula’s is Chain of Responsibility, an area where she is doing some great work. Utilising some of the training and knowledge she acquired overseas, Urszula is fastbecoming an advocate of training and education in safety. “I form partnerships and relationships with all of my colleagues and suppliers. Once you are familiar with people you work with they are not just colleagues you care for them so you have to

Urszula Kelly with Jennifer Kahl, Office Manager, iFR8.

“This was a great first role in Australia, it was a small family business and the people were fantastic. There were so many opportunities to grow.”

Urszula Kelly Managing Director, UC Logistics

ask yourself: am I doing everything I can to make sure everyone gets home safely,” she says.

Urszula stresses the importance of everyone involved in the supply chain placing safety at the top of the agenda. “It’s not just about what happens on the road, it’s about everyone involved making sure they run a safe operation,” she says. She recognises that while many involved in the supply chain, such as drivers, are aware of and compliant with their obligations, often key stakeholders do not have a full understanding of their legal responsibilities.

UC Logistics ensures that all drivers have safety training, but the business also offers training in safety for their clients. “It’s about everyone taking safety seriously, not just our drivers. If I can change one person’s mind and make them think about safety then I have done my job,” Urszula says.

By working with well-established contacts within the industry, Urszula has created opportunities for smaller transport operators to

allow them to work to a higher standard. Suppliers wishing to work for larger companies often have to go through the process of getting pre-approved as a supplier which can be complex. UC Logistics has made this easier by working with smaller operators to collate all the necessary information and ensure that they meet the safety regulations placed on them by the larger companies.

For Urszula, safety in Australia is perceived as an inconvenience. “It’s seen as very timeconsuming, a bit of an inconvenience and people are quick to jump and say ‘no’”, Urszula says.

According to Urszula this is part of the problem and there needs to be a shift around the attitude towards safety in logistics in Australia, and Urszula is working hard to ensure everyone that she works with is well-informed and educated to make the safest decision at all times. “Every time I have an opportunity to speak to the industry or the media about safety I will. It’s about having the right attitude and I think that is starting to change.” logisticsmagazine.com.au | 33

Technology

Boosting efficiency

SEW has found the SLAP system has improved packing and storing processes.

Fred Pizzicara, National Procurement Manager at SEW-EURODRIVE talks us through the implementation of a new logistics systems solution being used in Australia.

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t SEW-EURODRIVE, precision, efficiency and productivity are key.

Working with the head office in Germany, Fred Pizzicara, National Procurement Manager at SEW-EURODRIVE Australia, has implemented a new logistics process that aims to boost operational efficiency.

The system is called SLAP, which stands for standardisation of logistics and assembly processes. “The benefits we are getting here in

34 | Logistics&MaterialsHandling August/September 2018

Australia since the implementation of SLAP has been astonishing,” Fred says.

SLAP is an information technology systems applications product (SAP) integrated system and is used across various processes within the SEW facilities.

The system was developed in Europe in 2008 and a project team was developed to roll the product out across the entire business. By 2012, the system was implemented into 13 European

countries. In 2014, the system began to roll out internationally and Fred spent a significant time in Europe getting ready to bring the system across to Australia.

By 2014, the system was fully functioning in the Melbourne office and Fred says efficiencies were quickly realised across the entire SEW operation.

“Parts used to come in and we had to manually handle them into the system. Now products arrive into SEW stores and are scanned which it

Technology

Even for special bespoke parts, the SLAP system offers transparency.

automatically informs us of where the product should be placed. This enables us to gain a lot of increased productivity with the waiting and dispatching,” Fred says.

This has resulted in impressive efficiency gains and improvements. “As an example, putting away a whole container used to take one to two weeks, now it can be done in one to two days,” Fred says. The process of loading the goods from one container into the system is no longer a manual process. With the load of the container already detailed on the barcode, there is not a need to manually record each item.

“Before SLAP we had a warehousing team consisting of seven members. After implementing SLAP we found that we could alter this number and we re-deployed two team members of the warehousing team into other areas of the organisation,” Fred says.

“In the packing area, we also discovered that we could gain similar efficiencies by moving some team members into other areas of the business and the packing department could still operate with having one or two team members in a packing line to organise most of our products,” Fred says.

With SLAP, the process becomes more automated as it uses barcode scanners throughout the journey of the product. SEW now uses mobile scanners for booking of goods receipts on every box.

Another advantage is that there is an automatised printout of goods receipt slip. If applicable, an identification tag is attached to each box with local storage locations, which speeds up the process for storing parts, Fred says. In a factory

with over 15,000 different parts and products, this automated process can deliver significant efficiency gains.

The automated system also leads to increased transparency. “We can now see stock levels in SEW facilities across the world, this is really helpful with our efficiency processes as we’re so far away from Germany,” Fred says. The Melbourne SEW office supplies many other SEW sites in the region, not just domestically but also overseas. Having accurate and detailed stock reports helps SEW Melbourne to supply parts to these other facilities.

For Fred, the process has improved efficiencies within all departments. “The system is so clear

and easy to use that it stops the team from having to query quantities, they can just get on with the work now.”

By using a standard system across the whole business anyone can log in and see where the stock is located as well as access accurate quantities. This ultimately enables SEW to provide a faster service for the customer. If a customer needs a part that isn’t stocked in Melbourne, SEW employees can quickly look on the system to see where the closest available part is located as well as request the part all with one system.

The information is also always accessible instead of at certain processing times across the supply chain. This leads to a continuous workflow.

Fred says there is a significant reduction in administration tasks and manually inputting information, also leading to less error and faster process times.

“Even for special parts that we don’t usually stock we have transparency as soon as they come in, again increasing efficiency”, he says.

As the system is rolled out across SEW sites it allows the entire business to share and understand processes and information, there is no need to contact each location as all information can be seen in one central piece of software for all involved.

The system ultimately allows SEW-EURODRIVE to more effectively manage and control its stock and allows for better planning across regions.

Having increased touch points across the supply and process chain leads to increased efficiency and transparency, allowing SEW to better service its customer’s needs.

Having accurate and detailed stock reports helps SEW Melbourne to supply parts to other facilities. logisticsmagazine.com.au | 35

Sustainability

That’s a wrap…

At the 2018 Mercury Awards, Omni-group was awarded the Sustainability Initiative Award. LMH talks with the company about the theory behind the award-winning solution.

The Omni-group wrapping solution is unique in that both the film and machinery work together.

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any businesses are unaware of the savings that can be made when re-considering their stretch wrapping processes. With a sustainability mission in mind as well as a way to improve efficiencies for any business that uses pallet wrapping, Omni-group wanted to create the perfect wrapping solution.

The Omni Pallet Wrapping solution is a combination of machinery and film. Both parts have been engineered together to minimise the required amount of stretch film to wrap a pallet while maintaining optimum load containment.

Omni-group has developed a product that uses reinforced high-performance film with a superior stretch yield and puncture resistance compared to conventional films.

The increased stretch yield boasts an up to 400 per cent increase. This means that a 2,000-

36 | Logistics&MaterialsHandling August/September 2018

metre roll of film can stretch to 8,000 metres in length, which is equivalent to six rolls of conventional stretch film.

According to Charlotte Salisbury, Marketing Manager at Omni-group there has been a focus on low-cost per roll, rather than the length and yield of stretch film. “People think thicker is stronger, they look at low cost per roll but they should be looking at how many pallets they can wrap per roll,” she says.

With this in mind, Omni-group has developed thinner, stronger and longer stretch film to enable businesses to wrap more pallets with less film.

“It isn’t just the film usage efficiency that impacts the total cost of wrapping a pallet, it’s the wrapping time, waste disposal, labour cost and production downtime as a result of film breakages,” Charlotte says.

The Omni-group solution is unique in that both the film and machinery work together.

To eliminate double handling Omni-group has introduced built-in weighing sensors that weigh the load as you are wrapping. They can be controlled remotely so workers do not need to leave the forklift. Wrapping time is sped up by the auto cut and weld feature, which is unique to the machines. This reduces the risk of injury due to hand wrapping.

“Every pallet load is different, also they need different forces and have different weights.

We work with our customers and demonstrate to them how much they can save by running what we call a ‘cut and weigh’ test. We wrap a pallet using the conventional method and then wrap the same pallet using the Omni method, demonstrating the savings in film and time,” Charlotte says.

Sustainability

Omni-group was awarded the Sustainability Initiative Award at the recent Mercury Awards.

“We won our first award in 2015 and have been winning awards for innovation and sustainability since, we are also continually developing the product.”

Charlotte Salisbury, Marketing Manager, Omni-group

She says businesses that work with Omnigroup to half their stretch film uses are not only saving 20 per cent in wrapping costs, but also helping to save the environment. Charlotte says many businesses are able to half their plastic disposal costs using the Omni-group method.

According to Charlotte, a common concern with thinner wrap is that there will be more breakages. However, the film is manufactured with reinforcements that improve load containments and eliminate breakages. The Omni-group wrappers also have a unique load cell that detects the corners of the pallet and releases the film tension to prevent crushed corners.

The solution is multi-award winning.

says it is great to be acknowledged for the innovation that has gone into the product and the ways in which more sustainable and effective pallet wrapping can help businesses run more efficiently as well as protect the environment.

“We won our first award in 2015 and have been winning awards for innovation and sustainability since, we are also continually developing the product,” Charlotte says.

A further development in the Omni-group pallet wrapping solution is a new stronger, reinforced film, PerformX. The stretch wrap has fibre reinforcement strips through the film, making the film tear resistant. With regular stretch film any small puncture will tear through the entire stretch of the film, but with PerformX the five reinforced strips will restrict the splitting of the film through the entire width.

On winning the Sustainability Initiative Award at the 2018 Mercury Awards, Charlotte

The Omni-group film offers increased yield and durability.

logisticsmagazine.com.au | 37

People on the move

The latest appointments in the logistics and materials handling sector.

ALC appoints interim CEO

Port of Newcastle appoints new CEO

Appointment of Australian Border Force Commissioner

Port of Newcastle has announced the appointment of Craig Carmody as incoming Chief Executive Officer (CEO) of Port of Newcastle.

Craig has a deep understanding of the Australian transport and maritime industry, having led the strategic direction of Svitzer Australia in both a domestic and global context. Before joining Svitzer, he worked as a senior government adviser in transport and infrastructure, including in the Offices of the Prime Minister, Deputy Prime Minister and Minister for Transport and Infrastructure.

Mr Michael Outram APM has been appointed to the position of Commissioner of the Australian Border Force (ABF).

In a press release Prime Minister Malcolm Turnbull said since the ABF was established in 2015, Mr Outram has played a fundamental role in developing the agency, first as Deputy ABF Commissioner of Operations and then as Acting Commissioner.

Former VTA President receives OAM

John Lines joins Containerchain

Victorian Transport Association past President Trevor Martyn has been recognised with a Medal of the Order of Australia. The acknowledgement was announced in the General Division as part of the weekend celebrations for the Queen’s Birthday Honour’s List.

Peter Anderson, CEO, VTA, said Martyn had made an enormous and selfless contribution to the Australian transport industry in a decorated career, which has spanned more than 50 years.

“I can think of no one worthier and more deserving of an Order of Australia Medal than Trevor for his many services to the road transport industry and to the community,” Peter said.

Containerchain has announced today outgoing Managing Director of ANL, John Lines, has joined its Advisory Board in the role of Chairman.

John Lines, a recipient of the Order of Australia for services to the maritime sector, brings with him insight and expertise honed over an almost-fiftyyear career in shipping. He remains active in the industry and is especially focused on advising both portside and landside logistics stakeholders to face the opportunities and challenges that digitisation of the container shipping supply chain brings.

FedEx names new Freight President and CEO

The Australian Logistics Council (ALC) Board has announced the appointment of Lachlan Benson as Interim CEO, following the resignation of Michael Kilgariff as Managing Director.

Lachlan Benson will be responsible for managing ALC’s policy, advocacy and industry event activities for the period up until the recruitment of a permanent CEO. Lachlan Benson is currently Managing Director of Blue Arcadia Pty Ltd, a consultancy specialising in transport and logistics issues and sits as a Non Executive Director on a number of industry related boards.

38 | Logistics&MaterialsHandling August/September 2018

FedEx has announced that John A. Smith has been named President and CEO of FedEx Freight.

John currently serves as Senior Vice President of Operations at FedEx Freight, a subsidiary of FedEx Corp. Smith will succeed Michael L. Ducker, whose pending retirement was announced earlier this month.

“Given his deep experience in the transportation industry, unparalleled customer focus and trusted leadership, John Smith is a clear choice to lead the FedEx Freight organization into the future,” David J. Bronczek, president and COO of FedEx Corporation said.

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