LMH - Oct 2018

logisticsmagazine.com.au

inside OCTOBER/NOVEMBER 2018 What Industry 4.0 means for logistics Electric vehicles and their potential New freight plan for Victoria Supply chain resilience

DEMYSTIFYING BLOCKCHAIN Busting the myths and understanding the revolution

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Logistics as an industry of choice I’ve been lucky enough to attend a number of industry events over the past few months.

These events are a great way for LMH to get out in the field and to engage with the people who are driving innovation in this industry.

One sentiment that resonated across each event was how logistics struggles to attract and retain young and diverse talent. It only took a glance around the room to recognise that the demographic in this industry is consistent in both age and gender.

Logistics isn’t often an industry that grabs the attention of the media, yet it employs an estimated 1.2 million Australian workers and contributes around eight per cent of the nation’s GDP. Making sure that goods and services arrive in the safe hands of the consumer in a timely manner involves myriad processes and innovation. At each event, I was told of advancements taking place in 3D printing, Industry 4.0, blockchain, artificial intelligence and technology.

Senior executives and policy makers share the challenge of communicating logistics as an industry of choice to recent graduates. When Proving profitable at the cutting people say a career growth in logistics, there is often ed growth ator the cuttheProving image ofprofitable a warehouse worker a truckie. ting growth at the WhileedProving these jobsprofitable are not to be undervalued, cutting edProving profitable growth at there is more to a career in logistics. the cutting edProving profitable As Victorian Premier Daniel Andrewsgrowth pointed at the edProving out, “ifcutting you choose a careerprofitable in logistics you growth the cutting edProving will haveat a career for life”.

Logistics profitis a able growth atinto the acutting edProving stepping stone long, varied and exciting profitable cutting society edProv-and internationalgrowth career at thatthe underpins ing growth the cutting edthe profitable economy. It’s time toatcommunicate that.

Proving profitable growth at the 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 edProving profitable MelanieatStark | EditoredProving profitgrowth the cutting able growth at the cutting.

behindthecover

28

28 Contents COVER STORY

28 Pain for no gain

14 Going nuts for blockchain

The Commonwealth Bank of Australia built a

blockchain to ship 17 tonnes of almonds from contents Australia to Germany. LMH finds out how.

04 Bulletinboard

FEATURES 06 Mercury Awards 18 DMercury eliveringAwards the goods 2010

Panasonic’s Clare Hose argues that the industry needs to start asking why mobile workers are finding it difficult to be productive.

32 Build it and they will come Tru-test of quality.

Capture & 42 Data

GMK Logistics presents how it future-proofed its Supply Chains warehouse by thinking ahead and reducing time 24 Factory Materialsfor expansion. Sustainable supply chains.

Handling

34 Addressing issues Victorian Premier Daniel AndrewsSpiral presents his conveyor solves launched.

Forklifts & Lifting 44supply Linde presents its solution to the common issues view on the future of freight in Victoria. heat problems.

Humbled and Exalted Six new overhead cranes of delivery delays and stock availability.

Cart dollies for simple – 2009 Mercury Award for Ferrocut.

22 Driving Australia’s digital future handling tasks. winners.

Airfreight system reduces 36 Improving supply chain resilience The logistics, energy and manufacturing Double pallet dispenser. handling costs. concern. LMH Supply chain risk is an everyday industry met in Melbourne to discuss future 14 Training can be done to reduce threats. technologies. LMH reports.

Palletising robot. delves into whatHybrid forklift.

Bell’s Transport benefits 38 People on the move 24 Solutions motion from Skills forin Growth 32 Warehousing & Storage 49 Handling Hazardous The latest appointments in the logistics and LMH finds out how NORD DRIVESYSTEMS is program.

Goods materials handling sector. helping airports to perform at theirRecord best. picking productivity.

Gloves for handling 16 Information hazardous substances.

26

A rising force in freight movement Automated storage.

Technology - Supply LMH met with Ed Clarke, Co-founder and Hand-held eyewash.

Chains Storage CEO of Yojee, one of the first start-ups to success.

Information driven. network outside of the 03 From the Editor provide a blockchain banking sector.

04 Industry News 12 Global News 30 Australian Logistics Council

Regular Run

MANAGING DIRECTOR: John Murphy PUBLISHER: Christine Clancy 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: Anastasia Bios e anastasia.bios@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.

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Industry News

Australia Post profits up 47 per cent since 2017 Australia Post has announced a full-year profit after tax of $134 million, up 41 per cent on FY17.

According to the company, this result was largely driven by substantial growth in parcel revenues and a continued focus on efficiency gains.

This result was underpinned by strong parcel volume growth, both domestically (B2C up 10 per cent) and internationally (up 19 per cent), and a range of efficiency measures across operational and support functions. Together this helped offset the impact of an 11 per cent volume decline in the important domestic letter business.

“While this result was pleasing it demonstrates the business has a significant challenge ahead as it continues to transform.

Although we continue to optimise our delivery network, we require $2 of parcel revenue to mitigate the impact of every $1 decline in letters.

“In parallel with letter volume decline, many

of us are paying our bills online and large organisations are withdrawing from regional towns. This puts further pressure on our local post offices to serve these communities with important services, including financial

transactions. These growing services require investment and increased funding to ensure we can meet communities’ needs,” Christine Holgate, Group Chief Executive Officer and Managing Director at Australia Post said.

Australia Post requires $2 of parcel revenue to mitigate the impact of every $1 decline in letters.

Swinburne and CEVA collaborate to deliver supply chain course Swinburne University has partnered with CEVA Logistics, to co-create and co-deliver its Master of Supply Chain Innovation course in an Australianfirst collaboration.

The postgraduate course commenced earlier this year with the aim of upskilling those already working in the supply chain industry and ensuring new entrants into the discipline have the most up-to-date skills.

Delivered through Swinburne’s Australian Graduate School of Entrepreneurship (AGSE), the Master of Supply Chain Innovation continues to build collaborative partnerships with industry that will prepare graduates for the future of supply chain management.

Director of the AGSE, Alexander Kaiser, says this partnership is an important component in facilitating the delivery of industry-embedded postgraduate courses to Swinburne students.

“We are delighted to forge this collaboration with CEVA, a gold-standard logistics company that will add great value to the AGSE’s Master of Supply Chain Innovation,” Alexander said.

This first-of-its-kind partnership in Australia will see students working with CEVA on a core 4 | Logistics&MaterialsHandling October/November 2018

component of the degree, the Innovation in Transport and Logistics applied project unit.

While being mentored by CEVA’s logistics experts, students will work with the company on real-world projects and produce practical solutions to its issues.

With active university partnerships around the world in Asia, North America and the United Kingdom, this new relationship cements CEVA’s commitment to higher education links with industry.

Director of the Master of Supply Chain, Dr John Hopkins, says this unique partnership in Australia will give students an invaluable insight into the current landscape of the industry.

“At Swinburne, we believe that graduating career-ready means having a deep understanding of and connection with industry. This partnership will allow students to acquire contemporary skills aligned with the challenges that logistics companies face today,” Dr Hopkins said.

Carlos Velez Rodriguez, Managing Director of CEVA Australia and New Zealand, says the company is thrilled to join forces with Swinburne and engage with students who will make up the

The new course has the aim of upskilling those already working in the supply chain.

future workforce of supply chain management.

“We are looking forward to working with the innovative students at Swinburne and to not only mentor them, but to also draw upon their emerging skills to help us address the challenges and opportunities within our industry,” Carlos said.

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Industry News

Driverless vehicles to provide major productivity boost for Australia A report commissioned by the Australia and New Zealand Driverless Vehicle Initiative (ADVI) has predicted that the driverless vehicle industry is set to provide Australia with a major productivity boost and a range of new employment opportunities.

With driverless vehicles expected to make their official debut on Australian roads as soon as 2025, ADVI Executive Director, Rita Excell, said she was confident that new job opportunities created by the autonomous vehicle industry and the development and increased use of new driverless vehicle technologies.

“Any job losses experienced within the traditional transportation sector will be offset by the many jobs created within the engineering, automotive, electrical and software industry sectors, which will increasingly be called on to service and support the driverless vehicle industry,” Rita said.

“There is growing agreement that connected

Connected and autonomous vehicles could improve access to jobs.

and autonomous vehicles will significantly change how we live, use and get around our cities, and what this report shows us is that this technology can substantially improve

access to jobs, services and entertainment, as well as create new industries and occupations,” she said.

“The critical transition period for employment and growth will start in 2025 as we see more people start to embrace this new technology and change the way they get around – especially when it comes to swapping car ownership for the convenience of hiring and using a car as and when they need it like they now do with Uber and rideshare.”

Rita said Australia remains well-placed to be a global supplier and implementer of driverless vehicles, and the nation can expect entirely new mobility service value chains to emerge.

“You only have to consider the e-commerce, mobile phone and internet provider industries to understand that business service roles are now a key part of the Australian economy, and we can expect a raft of new jobs to be created across professional, scientific and technical services industries.”

Amazon Sydney fulfilment centre opens its doors Amazon has opened its second Australian fulfilment centre, located in Moorebank, South West Sydney. The new centre was built to continue growing product selection and will be an important part of the company’s Australian fulfilment network providing faster shipping to even more customers.

“This is an exciting milestone for Amazon in Australia. The Sydney facility in Moorebank will help Amazon ensure that customers enjoy fast and reliable delivery across more areas of the country,” said Robert Bruce, Amazon Director of Operations. “The new Sydney centre builds on the capabilities of our first fulfilment centre in Dandenong South in Victoria, and expands our ability to service the growing customer demand.”

Liverpool Mayor, Wendy Waller, said, “It is great to welcome the Amazon fulfilment centre now it has opened its doors in Moorebank. We have seen such a positive response from our local community since Amazon announced it 6 | Logistics&MaterialsHandling October/November 2018

was coming. We look forward to having good jobs for people close to where they live and working with Amazon as a partner in the local community. We expect the Sydney fulfilment centre will become a key logistics hub thanks to

Amazon's new fulfilment centre covers 43,000 square metres.

its strategic position in South West Sydney.”

The fulfilment centre has a 43,000 square metre footprint and its location provides easy access to the M5 motorway, Sydney airport and ports.

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Industry News

BOC Limited renews sponsorship with Women in Industry Awards BOC Limited will be sponsoring the Women in Industry Awards in 2019.

By renewing its sponsorship, 2019 will be BOC’s five-year anniversary of sponsoring the awards.

BOC’s staff strive for individual excellence, with sisters Michaela and Philippa Craft being recognised in 2017 for Rising Star of the Year and Excellence in Engineering, respectively.

The company is a member of The Linde Group, which supplies compressed and bulk gases,

chemicals and equipment around the globe.

BOC develops safe, sustainable and innovative solutions for customers in many specialty sectors, heavy industry and medical environments.

This year, the Women in Industry Awards were held at Doltone House, Jones Bay Wharf, in Sydney.

There were almost 200 participants from a diverse range of industries, who came together to celebrate and promote the achievements of women in making valuable contributions to their sectors.

Australia leads world in opening of shared alliance spare parts operations Renault, Nissan and Mitsubishi have launched a shared warehousing and logistics operation in Australia realising synergies to be replicated and expanded across the world. This follows Mitsubishi joining the Renault-Nissan global alliance last year.

The new Alliance National Parts Distribution Centre will be one of Australia’s largest automotive logistics facilities. At over 37,000 square metres in area, it will use industryleading technologies and processes for the fast and efficient movement of automotive parts and accessories. The facility will be the new master warehouse for all three brands.

The new site was developed and purposebuilt by Frasers Property and is managed by independent specialist CEVA Logistics, who took over Nissan’s parts network in 2015. “This is a milestone development and a future test case for their global operations. We are proud to be part of this collaboration which has opened the door to many important synergies,” Adam Duncan, General Manager Sales – Contract Logistics at CEVA said.

The location of the new Alliance Facility, Truganina, in Melbourne’s western suburbs, takes advantage of nearby transport infrastructure. It was chosen for its proximity to Melbourne’s Tullamarine airport, shipping ports, the CBD and ring roads. Frasers Property Group commenced development of the WestPark Estate in 2004 and the Alliance Facility is the 15th and final stage of the Estate development.

8 | Logistics&MaterialsHandling October/November 2018

Adam also points out that “this new warehouse provides a total solution; encompassing more than 20 types of racking systems, a conveyor, hazardous storage room, mezzanine flooring, 10 recessed docks, power supply for electric vehicles and the installation of CEVA’s Warehouse Management System. It has been designed to meet the requirements for a six-Star Green Star rating, the Green Building Council’s highest level of certification for sustainable building design and is among Australia’s first six-star energy rated parts distribution centres.”

One of the major components of the warehouse was for the design, supply and installation of the racking, conveyor and mezzanine floor

An alliance of automotive manufacturers is launching a new site in Melbourne.

solution. The mezzanine floor has three tiers and provides approximately 70,000 storage locations for automotive parts and accessories. A further 29,940 pallet locations were installed as part of the racking component.

According to Adam, “Stow Australia was successful in winning the competitive tender due to its ability to provide a broad range of storage solutions in a timely and cost-competitive manner. We were particularly impressed with their flexibility to meet changing needs, their ability to compress installation times leading up to the Christmas break and the fact that Paul Johnson, Stow’s Managing Director, stepped up to the plate to make sure things got done.”

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Industry News

Australian exports reach record $400bn Australia’s total goods and services exports have reached a record $401 billion for the first time, bolstered by strong export growt to China.

International Trade in Goods and Services data for 2017-18, released by the Australian Bureau of Statistics, demonstrates the ongoing strength of

Data reveals that Australian exports to China grew by 11 per cent in 2017-18.

Australia’s overall trade performance.

The figures confirm the value of Australian exports reached a new high of $401 billion in 2017-18, the first time annual exports have exceeded $400 billion. Australia’s annual trade surplus was $6.3 billion over the same period.

These record exports were fuelled by increased resources exports including LNG, coal and iron ore, while meat and wool exports also rose.

Machinery, other manufactures and gold also increased over the past year.

Importantly, the data reveals Australian exports to China, Australia’s largest trading partner, grew by 11 per cent in 2017-18, exceeding the $100 billion mark for the first time to reach $105 billion, reflecting the benefits provided by the China-Australia Free Trade Agreement.

Australia’s exports to Japan rose by 16.4 per cent to $48.2 billion over 2017-18; exports to ASEAN countries grew by 16.1 per cent to $32.7 billion and exports to India grew 7 per cent to $16.1 billion.

New container terminal planned for Port of Newcastle The new CEO of the Port of Newcastle, Craig Carmody, has committed the Port of Newcastle to developing a world-class container terminal to boost jobs and business opportunities in the Hunter region and dramatically reduce the number of trucks on Sydney’s roads through

Port of Newcastle has committed to developing a new container terminal.

10 | Logistics&MaterialsHandling October/November 2018

expanded use of Newcastle’s rail connectivity.

“The potential for a container terminal in Newcastle to diversify and grow the NSW economy is far bigger than the NSW government seems to realise. We are already exploring a range of options based on global best practice

and I am looking forward to discussing our plans with the State government and port developers who have expressed an interest in this exciting project,” Craig said.

Economic modelling by Deloitte Access Economics shows that a container terminal in Newcastle will deliver greater freight efficiency and competitive advantages for Australian businesses. It will be a catalyst to grow the Hunter region, boost international trade, generate jobs and move freight faster and more cost effectively.

“As a global gateway for regional Australia, the Port is ready to go. We have cost effective landside connectivity, interested shippers and a deep channel port that is operating at less than half its capacity. With freight growth in NSW expected to double by 2040, a fully utilised Port of Newcastle with a world-class container terminal will provide efficiencies and competition to meet the future logistics and freight task. It is an honour to lead such an important project,” Craig said.

Industry News

Australia Post launches nation’s first technology academy

Australia Post has launched a new academy aimed at developing careers in the tech sector.

Australia Post has launched a dedicated Tech Academy, a two-year development program available to anyone with a keen interest in a career within the evolving tech sector.

Aimed at training emerging talent from a diverse background – including return to work parents and people with non-technical skills – Australia Post has teamed up with educator

Coder Academy to provide 20 successful applicants on the job training and industry placements within the organisation’s tech and digital spaces.

Commencing February 2019, associate trainees will receive a 12-week tech boot camp, a two-week placement across Australia Post’s retail and operations sectors, and four five-

month tech rotations, with opportunities for ongoing employment within a tech or digital team at the conclusion of the two-year period.

Australia Post Chief Information Officer, John Cox said the innovative program will nurture new talent, and enable people to build their skills across emerging technologies.

“We’re proud the Australia Post Tech Academy is the first of its kind in the country,” John said.

“We know the tech industry is continuously growing and demand for talent is increasing.

Meeting employment shortages within the sector has become increasingly challenging.

“This program is open to anyone, regardless of technical backgrounds, including return to work parents, veterans, mid-career professionals, and graduates.”

John said Australia Post is looking to grow its tech and digital capabilities, by developing talent in emerging technologies such as machine learning, the Internet of Things (IoT), and blockchain.

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logisticsmagazine.com.au | 11

Global News

UPS launches pilot to deliver packages inside apartment buildings UPS has begun a pilot with Latch smart access devices to enable in-building deliveries to multiunit homes in New York City, providing increased security and convenience for residents who are not at home to receive packages.

Latch’s smart access devices enable UPS drivers to provide more reliable customer service and complete more deliveries on the first attempt.

UPS began preliminary tests in Manhattan earlier this year and has now expanded to Brooklyn. Eventually, UPS may offer the service in markets throughout the U.S. together with smartaccesspioneer Latch.

“The use of smart access devices on doors of apartment and condominium buildings is a big step forward for the package delivery business.

It can be difficult to securely deliver packages in high-density, multi-family urban residences,

especially when people are not at home. Smart access devices give us a keyless way to deliver packages to buildings and leave packages safely in lobbies or building package rooms. For our customers, it gives them peace of mind that their package will be waiting for them when they get home,” Jerome Roberts, Vice President of Global Product Innovation at UPS said.

Latch’s smart access system lets residents and others use smartphones to unlock doors throughout a building, including at the main entrance. An embedded wide-angle camera within each device captures a visual record of every interaction by a non-resident that authorised users can monitor from the Latch mobile app.

UPS, however, is using Latch systems only to enter buildings, not individual apartments. Residents can use Latch to enter the building and to manage

guest access. To manage deliveries, they use the UPS My Choice mobile app or website.

The potential market for smart access devices used in this way is enormous and growing. There are currently about 20 million multi-family residential units in the United States, with about 350,000 added each year via new construction, Latch says.

UPS is developing a keyless way to deliver packages in apartment buildings.

Toll’s new hub is expected to increase the company’s Asian network and traffic.

Toll opens logistics hub in Singapore Toll Group, has opened Toll City – a nextgeneration logistics hub in Singapore, spanning over one million square feet.

“Strategically located in Tuas, Singapore, the opening of Toll City is expected to increase Toll’s Asian network and traffic, while its proximity to road links into Malaysia and the growing Jurong region in the West of Singapore will make the facility an excellent land-sea interface for customers,” Toll Group said in a statement.

“Toll City, supported by the Singapore 12 | Logistics&MaterialsHandling October/November 2018

Economic Development Board, is well poised to complement existing operations in the AsiaPacific region and serves as a gateway that will connect regional and global customers.

“It will fuel growth across local and regional markets in the retail, FMCG and healthcare sectors. Toll City is also located less than three kilometres away from the upcoming Tuas Port in 2019, which will consolidate all of Singapore’s container operations in one terminal and handle up to 65 million

TEUs per year when fully operational.”

Toll City is reportedly home to new technologies including driverless vehicles, smart-city telematics, 3D printing and smart radio-frequency identification (RFID) cabinets.

Also, Toll City hosts the SiTadeL Control Tower that provides decision support. SiTadeL won the Supply Chain Asia innovation award in 2017.

Minister for Trade and Industry, Chan Chun Sing, officiated the launch.

Global News

Maersk and IBM launch blockchain shipping solution Maersk and IBM have announced the creation of TradeLens, jointly developed by the two companies to apply blockchain to the world’s global supply chain.

TradeLens is the result of a collaboration agreement between Maersk and IBM, a blockchain-enabled shipping solution designed to promote more efficient and secure global trade, bringing together various parties to support information sharing and transparency, and spur industry-wide innovation.

As part of the TradeLens early adopter program, IBM and Maersk also announced that 94 organisations are actively involved or have agreed to participate on the TradeLens platform built on open standards.

TradeLens uses IBM Blockchain technology as the foundation for digital supply chains, empowering multiple trading partners to collaborate by establishing a single shared view of a transaction without compromising details, privacy or confidentiality. Shippers, shipping lines, freight forwarders, port and terminal operators, inland transportation and

TradeLens uses IBM Blockchain technology as the foundation for digital supply chains.

customs authorities can interact more efficiently through real-time access to shipping data ad shipping documents, including IoT and sensor data ranging from temperature control to container weight.

Using blockchain smart contracts, TradeLens enables digital collaboration across the multiple parties involved in international

trade. The trade document module, released under a beta program and called ClearWay, enables importers/exporters, customs brokers, trusted third parties such as Customs, other government agencies, and NGOs to collaborate in cross-organisational business processes and information exchanges, all backed by a secure, non-repudiable audit trail.

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Cover Story

Going nuts for blockchain

The CBA-led project saw 17 tonnes of almonds shipped from Victoria, Australia to Hamburg, Germany.

Blockchain has the potential to offer a whole range of benefits across the supply chain. Here LMH demystifies the concept by talking with logistics and blockchain specialists at one of Australia’s leading banks.

B

lockchain technology has the potential to revolutionise any market it touches.

In the world of logistics, where realtime data and transparency are vital factors in an efficient and successful supply chain, the opportunities blockchain promises could be significant.

A few months ago, the Commonwealth Bank of Australia (CBA) built a blockchain to ship 17 tonnes of almonds from rural Victoria to Hamburg. In a collaborative project involving a series of logistics operators, including a rail freight provider, stevedore and major shipping line – the experiment was a major success and the results are now being used to shape the future of blockchain in the logistics sector.

Logistics & Materials Handling met with CBA’s Sophie Gilder, Head of Blockchain, and Chris Scougall, Managing Director of Industrials and Logistics to find out the details of the project

14 | Logistics&MaterialsHandling October/November 2018

and how the technology will go on to change the processes used to ship goods.

From origin to destination The almond shipment was tracked end-toend from the packer in Sunraysia, Victoria to Hamburg, Germany and involved five key Australian and international supply chain leaders. CBA facilitated the experiment and the platform was underpinned by ledger technology, smart contracts and the Internet of Things (IoT).

“Naturally, we looked to work with someone who was a primary producer, in this case that was Olam Orchards Australia. We then looked at someone on the rail side, that was Patrick Terminals, then on the stevedore side we had Port of Melbourne and worked with Orient Overseas Container Line (OOCL) as the international container line,” Chris says.

The program took a long time to develop

and Sophie’s team were working intensively for months before the shipment actually took place. This isn’t the first time that CBA has been involved with a blockchain project, and the bank sees blockchain as a significant opportunity.

“We started exploring the concept in 2015, and we joined a global consortium called R3.

In 2016 I joined the Innovation Lab at CBA and we established a Centre of Excellence for blockchain. We think this technology will have a far-reaching impact for our customers, for the structure of various industries, for the way that we do business and also for financial services,” Sophie says.

How does it work?

Blockchain is commonly talked about with regards to logistics and the supply chain, but how does it really work in practical terms?

“If we break it down into component parts

Cover Story

it’s easier to understand,” Sophie says. The component that users see is essentially a dashboard, it gives them a window that shows the underlying information of the shipment. In addition to that, we have a blockchain, which is a distributed ledger sitting behind the user interface, she says. This database is unique in that it can record information from a variety of sources, including the IoT devices inside the shipment. It is synchronised across a network so that every user has an up-to-date clone of the database, regardless of their location.

“This is revolutionary in that instead of the data being recorded in one single location, the data is shared. Users can see in real-time how far through the operational process is progressed,” Sophie explains.

The IoT devices placed in the shipment provided a bridge between the digital and physical realm for the team. “By the time the nuts arrived in Hamburg, you had an entire chronology from origin through to destination of the hands through which the product has passed, the times and dates that they happened and also the condition of the goods at any time as the IoT devices were not just capturing location but temperature and moisture,” Sophie says.

For Chris, this has significant benefits for all parties involved. “For Olam, the producer, they are able to make sure the product was delivered in prime condition. For the buyer, they could see that the product had been stored properly throughout the entire trip from Australia,” he says.

The IoT devices placed in the shipment were developed by LX Group, an IoT product development specialist. The devices measure about the same size as a human hand and have a built-in battery.

“These devices can do two things which are essential for logistics in Australia and the world at large. It can capture information and save that information to send when connected. This has significant benefits for countries like Australia where there are many areas that do not have connectivity – you can still capture it and as soon as the device reaches a signal the data is communicated,” Sophie says.

Chris Scougall is Managing Director of Industrials and Logistics at CBA.

Transparency and efficiency There are many overarching benefits to be realised from using blockchain technology. “The comments we have from all participants involved two words; transparency and efficiency,” Chris says.

“Whether it was Olam or a transport operator, there was transparency about where the product was at any one time and also the condition it was in. This access to information enabled operators to better utilise their assets and provide their customers with better, more efficient services,” Chris says.

According to Sophie, transparency is something that participants along the supply chain don’t have today. “The way we cope now and come to terms with different aspects of communicating with each other is that we make phone calls, we send emails, faxes, collect receipts – we have a vast array of different forms of information. A lot of these forms are physical and need to be transported, sent or couriered between the different parties and you just hope that nothing gets lost or that any errors are made,” she says.

Where blockchain gives a significant advantage is all of this information is captured with a date and time stamp and a digital signature about who undertook which action.

“You have a complete set of information about who has done what, you don’t waste time looking through filing cabinets or desperately trying to find that receipt that you need,” Sophie says.

Trust and security are major advantages and Sophie explains that a high priority for any logistics business is authenticity. “At the moment, we rely on paper and wet signatures, which is pretty much what we were doing in medieval times.”

Paper is not fraud proof, and Sophie says that when using blockchain documents you are given a unique digital footprint called a hash. This hash works like a fingerprint in that you know that it is genuine due to its makeup. For Sophie, this is very powerful and enhances the level of trust between different parties in trade.

Early adoptors Although blockchain is very much in its early form, experiments like this one are paving the way for how the technology can be used across

VALUABLE EXPERTISE. VISIONARY SOLUTIONS. logisticsmagazine.com.au | 15

Cover Story

a variety of sectors. Sophie’s department at CBA are working on a series of projects and trial, exploring the possibilities.

“We want a good understanding of blockchain so we have undertaken a series of proof of concepts – over 20 of them. They are not just in the financial services realm, they are in many industries. We want to understand our clients problems and how we might be able to deploy emerging tech to address them,” Sophie says.

The types of devices and processes used in the almond shipment are not common in regular shipping processes, but Sophie believes they are at a tipping point in terms of affordability and battery life. “Until now there have been issues with them not being cheap enough to deploy across entire fleets and logistics assets. Another issue is that they are not sufficiently rugged.

They need to be tougher so that they can be dropped or if someone is packing a container they are not at risk of being damaged. All of these need to be considered in the next step in development” she said.

Sophie expects that these devices and this technology will be used more in the future as it offers unique benefits over any other technology currently available. “It’s hard to do these type of things with any other method. While we are

Collaboration key to success

Sophie Gilder is Head of Blockchain at CBA.

still working through the practicalities, the benefits of different parties being able to share information for logistics will be huge.”

Both Chris and Sophie attribute much of the success of this particular project to the collaboration between all parties involved.

“It’s not technology that is the gating requirement, it’s most likely to be governance structures and how you get different entities to agree with each other,” Sophie says.

She says it will take longer to achieve consensus between legal entities and people than it does to build the technology and the key to the success of this project was the consensus and shared vision of all involved.

“All parties wanted to learn, they had the understanding that this could change the way they operate their business and interact with their customers. Everybody approached the project with an open mind and always offered honest feedback. This enabled us to create something that had benefits for all involved,” Chris says.

“The more you do and the more you share the learnings from projects like this the more you can progress with the adoption. We see these practical experiments as a way of sharing the learnings and educating people on the possibilities of blockchain.”

Photo credit: Andrey Lebedev

Throughout the entire shipment the almonds were tracked using sensors placed inside the containers.

16 | Logistics&MaterialsHandling October/November 2018

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Policy

Delivering the goods:

a freight plan for Victoria Victorian Premier Daniel Andrews met with the logistics and transport industry to discuss the future of freight in Victoria. Logistics & Materials Handling was on-hand to report.

O

ver the past few years there has been an unprecedented road and rail infrastructure investment across the state of Victoria. This sentiment has been backed up by the recent establishment of a dedicated freight division of Transport for Victoria and the publication of the Victorian Freight Plan.

The Victorian Freight Plan recognises that moving goods to, from and around Victoria

18 | Logistics&MaterialsHandling October/November 2018

is vital to the economy and enhances the standard of living for all. With Victoria’s rapid population growth in mind, there is an increased need for goods and services.

Victoria is only three per cent of Australia’s total land mass, but accounts for almost a quarter of Australia’s total food and fibre exports, with goods exported each year valued at $26 billion, according to the plan.

The plan identifies future challenges and

opportunities that freight and logistics businesses, their employees, and local government have raised and the initiatives needed to address these.

The overall aim of the plan is to reduce the cost of doing business, improve the efficiency of moving freight while minimising adverse impacts, to better connect Victorian business to their local, interstate and export markets and to provide sufficient future capacity.

Policy

The report highlights five key priorities that the government will tackle over the next five years to ensure that Victoria has an efficient, safe and sustainable freight and logistics network. These are to manage existing and proposed freight corridors in conjunction with urban form changes, to reduce the impact of congestion, to better use rail freight assets, to plan for Victoria’s future port capacity and to stay ahead of the technology curve.

Key elements of the plan include working closely with industry and the freight community to establish the roles to play in how the freight and logistics system develops and to work towards a common freight ambition.

At a recent event, the Victorian Transport Association (VTA) invited Victorian Premier Daniel Andrews to meet with members,

sponsors, associates and other stakeholders from the freight and logistics sector to discuss the future plans for Victoria, skills shortages and how better to promote the logistics industry as a career of choice.

The event was held in the Members Dining Room at Parliament House in Melbourne in August and provided a unique opportunity for industry to meet with Government to discuss Victoria’s freight future.

Peter Anderson, CEO of the VTA.

Action is the new normal Introducing the Premier, Peter Anderson, Chief Executive Officer at VTA applauded the Victorian Government for defending the long-needed infrastructure developments in Victoria. He congratulated the Premier for delivering on election promises and was thankful that he has the role of representing

Victoria is only three per cent of Australia’s total land mass, but accounts for almost a quarter of Australia’s total food and fibre exports.

logisticsmagazine.com.au | 19

Policy

the logistics and transport industry at government level.

The Premier spoke of the successful projects the Government has delivered on, including the privatisation of the Port of Melbourne, which he described as “the biggest transport program of investment the state has ever seen”.

For the Premier, the latest developments and the speed of improvements should now shape the standard for years to come. “We have invested in the local roads you drive on every day, we have invested in public transport to address pressure points on our roads. This sense of action should be the new normal, what we’ve done over the past four years should set the tone for the future,” he said.

Representing an industry The Premier spoke of the great job that the VTA do of representing the industry’s needs and concerns.

“Our people are our most important asset, professional and industry associations are so important. We can never know your sector like you do,” he told those in attendance.

The Premier has some first-hand experience in the logistics industry. “I have actually driven a truck myself, while I was at university.

Though, I’m not the greatest example of the craft,” he said. The Premier revealed that his father ran a food processing business and that he would help out from time to time.

As a strong advocate for the industry, the Premier spoke of the respect he has for the logistics industry. “To get that freight task where it needs to be so that Victoria can capitalise on its natural advantages and pave the way for innovation and critical thinking is not underestimated here,” he said.

Recognising the great contribution that freight and logistics provides to the economy and society at large, the Premier spoke of the importance of making the industry a safe and efficient one and the part that improving infrastructure can play in that role.

Right people in the right job Addressing the growing skills shortage in the logistics, transport and freight sector, the Premier spoke of the importance of deaing with the current skills shortage in the industry. “It’s not the communities want or desire that is a limiting factor in this development. It’s the skills and some natural resources that will hold us back,” he said.

He also recognised that there is an issue in that the general perception of what a career 20 | Logistics&MaterialsHandling October/November 2018

Victorian Premier Daniel Andrews thanked the logistics and transport industry for their great work.

looks like in the logistics industry can be negative.

“We need to change the way the community views the roles in the transport industry. In this sector, if you have the right qualifications and you do a good job you will have a job for a long time and earn a good wage,” the Premier said.

To address this, the Premier declared that should the Labor government be re-elected at the November state election, it will invest $4 million dollars to deliver 800 new heavy vehicle drivers in partnership with the VTA and others.

The Premier also discussed his government’s investment in TAFE programs to help equip the next generation of workers with skills needed by the state’s growing economy. He also stated that partnering with groups like the VTA was essential to overcome the specific challenges

faced by industry sectors.

An important factor for the Premier is not to miss the opportunities of developing this industry and for it to provide good jobs for the people of Victoria.

Peter Anderson thanked the Premier for his signature of intent in making the logistics industry an industry of choice and for overseeing what he claimed is biggest infrastructure agenda the nation has ever seen.

“Our industry is about people, freight and the economy that drives the standard of living we all enjoy. While over the years at times, as an industry, we have felt left behind, there is now a real focus on our industry and we are encouraged by new infrastructure, a new industry specific department in Freight Victoria and an economy that is going from strength to strength,” Peter said.

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Innovation

Driving Australia’s digital future Leading industry experts across the manufacturing, logistics, infrastructure and energy sectors met in Melbourne to discuss the opportunities that digital transformation will provide for Australia.

D

igitialize, an annual conference organised by Siemens, was held at the iconic Melbourne Cricket Ground (MCG) this year. The theme for 2018 was ‘unlocking the potential’ and featured a line-up of global and local industry experts.

The four topics of the day were workforce of the future, Industry 4.0, intelligent infrastructure and Australia’s Energy Transition.

Chairman and CEO of Siemens Australia Jeff Connolly, kicked-off the day with a lively discussion about what Industry 4.0 is. Sporting a new pair of Adidas sneakers, he spoke of the potential that Industry 4.0 will provide for localised manufacturing.

Leading experts in manufacturing and logistics met at the MCG.

22 | Logistics&MaterialsHandling October/November 2018

“Years ago the main concern for manufacturing was the cost of labour, so you looked for the cheapest place to manufacture.

With Industry 4.0, companies will be able to produce products at the point where they will be consumed, significantly reducing transport and logistics costs,” Jeff said.

Jeff’s sneakers had been customised to showcase the Siemens brand, with the trademark three strips in Siemens-style green.

“Industry 4.0 will allow for personalisation and customisation. Products like my customised sneakers can be produced at the same cost as 1,000 batch products. This is a very exciting prospect for Australia.”

The four topics of the day were workforce of the future, Industry 4.0, intelligent infrastructure and Australia’s Energy Transition.

Gaining competitive edge with Industry 4.0 According to Jeff, the potential of the fourth industrial revolution doesn’t stop at product personalisation and customisation. It will change everything. “The way we work, the way we learn, the way we make things and the way we use our planet will all change.”

Industry 4.0 provides major opportunities for businesses to improve their competitive

Innovation

Workforce of the future With endless opportunities, Industry 4.0 is set to transform many industries. For another presenter, Innes Willox, Chief Executive at Ai Group, Industry 4.0 provides Australia with the opportunity to have a thriving logistics industry.

“To walk the road to Industry 4.0, organisations will need ambition, to cultivate innovation at every level, collaboration, robust technological infrastructure a rock-solid approach to cyber security and new skills,” Innes said.

Siemens, Swinburne University of Technology and Ai Group have established a pilot programme to improve Science, Technology, Engineering and Mathematics (STEM) skills, the pilot includes a range of topics including Industry 4.0 and the Internet of Things (IoT).

“The pilot has been very successful and is a project that gets to the heart of what’s needed for a workplace of the future,” Innes said. The importance of preparing a workforce of the future was an idea that resonated throughout the day, with the importance of skills and training coming up in all sectors.

Data and how to use it A central aspect of Industry 4.0 is data.

According to Jeff, data itself isn’t valuable. The question is, how to unlock it?

“Organisations shouldn’t be collecting data alone, they need to make sense of it and then work out what they want to do with it,” Jeff said.

“Data is being described as the oil of the 21st century. Ninety per cent of the data in the world today has been created in the last two years and 5.5 million new ‘things’ get connected every day.

However, the value is in being able to refine that crude data and turning it into usable business information. This requires sophisticated platforms that simplify and enable the process.

It also requires skilled people coming through the system – which is what this facility and the partnership is all about,” Jeff said.

Early adopters The Siemens event also provided an opportunity for early adopters of Industry 4.0 to showcase their success. Siemens Business Development Manager Leonie Wong spoke about the success that local distiller Brogan’s Way has found with using Industry 4.0 principles.

A logistics Industry 4.0 success story was presented by Dulux Australia. Brad Hordern, General Manager Supply Chain at Dulux, talked about the new $165 million warehouse facility at the Merrifield factory site in Melbourne’s north.

This facility is highly automated and,

according to Brad, includes the most advanced paint manufacturing technology and innovation. “This new facility was an exercise in precision,” he said.

The factory is the largest coatings factory in Australia and New Zealand and Dulux has purchased 17 hectares of land to allow for expansion. “With an investment like this, we wanted to do it right. We knew it would be a multi-decade investment so we wanted to design for the future,” Brad said.

The factory houses around 70 employees and just under 40 are operators, demonstrating its highly automated functionality.

According to Brad, economies of scale no longer apply in the same way they used to.

“There still is an aspect of it, but customisation is expected now. That’s one of our points of difference and now we can do variations that we couldn’t’ do before. We can be very competitive on the high-volume stuff but also with the small customised orders. But the important thing is the quality. With the automation upgrades every product we produce has the same precision level,” Brad said.

Breakout session facilitator David Hegarty, Managing Director at APS Industrial called the Dulux Merrifield case an important success story for Australian warehousing, logistics and manufacturing. “There is something we can all learn from this great example and I hope you all recognise the benefits that can be made from adoption of Industry 4.0 techniques.”

Photo Credit: Neale Cousland

edge. “Historically there was a huge amount of engineering discipline going into product releases, everything needed to be 99.9 per cent right before going out to market. Then it didn’t take long for businesses to copy. But with the ability to design and iterate fast, you can go from concept to reality very quickly, gaining a serious competitive edge,” Jeff said.

Even the MCG has the potential to gain from the concepts at the heart of Industry 4.0. Using the European example of the Allianz arena in Munich, Jeff explained the ways in which Industry 4.0 is helping to maintain the highest quality of grass on the pitch. “There are sensors underneath the grass which monitor light, temperature, weight and humidity 24 hours a day. This data is then used to keep the grass at its highest quality at all times.

The benefits to be realised don’t stop at grounds maintenance either. “What does an AFL shirt have to do with Industry 4.0?” Jeff asked.

Every AFL player could have a sensor in the back of their shirt, monitoring 100 per cent of their movement. This includes body temperature, sweat and breathing. “This data means that after the game you can work out what went wrong, and adjust diet and training regimes accordingly.

All of these capabilities are a product of Industry 4.0”, Jeff said.

AFL players now play with sensors in their shirts, monitoring their movement.

logisticsmagazine.com.au | 23

Innovation

Solutions in motion Ensuring airports and their components run smoothly is a constant demand. Martin Broglia, Managing Director at NORD DRIVESYSTEMS, explains how drive technology can help.

Sydney Airport saw a total of 43.3 million passengers move through its doors in 2017.

24 | Logistics&MaterialsHandling October/November 2018

Innovation

A

irports are a great example of logistics performing at its finest. From moving people and planes to bags and freight, everything has to run seamlessly and

on time.

In 2017, Sydney Airport saw a total of 43.3 million passengers move through its doors.

The airport services more than 43 international airlines, seven domestic and regional airlines and ten freighters. Looking further afield the world’s busiest airport is Atlanta, Georgia in the USA. More than 100 million passengers passed through the airport in 2017.

Timing and efficiency is key when it comes to airports. Having the right person’s baggage on the right conveyor, in the right place is an important factor in any travel experience. The safe and efficient handling of baggage or freight is paramount to running a successful airport.

Handling and transporting baggage for millions of passengers a year is not an easy job, and any way that this can become more efficient, in time, energy and process is a welcome solution among airports and passengers alike.

Saving energy while improving efficiency According to Martin Broglia, Managing Director at NORD DRIVESYSTEMS, a global supplier of drive technology for the logistics industry and the wider industrial sectors, a key operational consideration for airports is the high energy operating costs.

“Airports want to know how they can save money, increase efficiency and in turn reduce their carbon footprint,” Martin says.

NORD has developed an optimised drive system that is ideal for use in baggage conveyor belts as well as energy-intensive areas such as intralogistics – post distribution centres and warehouses for example.

“One of the main products we offer to airports is our IE4 motors, they’re more commonly known as Super Premium Efficiency motors. It’s a very low energy consumption motor so that means that the airports can save a lot of money with this new product. The return on investment is very quick,” Martin says.

He says asynchronous motors are typically used in airports, however Martin claims these are not as efficient as the synchronous motors. “The technology currently being used in the airports and logistics industry has much higher energy consumption. Moving to the synchronous model provides a beneficial switch for these type of businesses.”

Due to the use of permanent magnets, heat dissipation is reduced. The motors have a highpower density and a higher maximum achievable peak torque to get conveyors full of bags up and running again.

“The IE4 solution has a wider speed range than normal asynchronous motors and can reduce the amount of different gearbox ratios. This in turn reduces the spares inventory for our customers,” Martin says.

Further benefits are realised when the IE4 motor is coupled to a NORD helical bevel gearbox. “We use two stage helical bevel gearbox which is between 92 to 96 per cent efficient, this gives a total energy savings of

approximately 50 per cent,” Martin says.

The IE4 synchronous showcase their full cost savings in partial-load and partial-speed ranges, which are common in airport baggage handling applications. This is due to a conveyor often running with little or no bags. The motor is controlled by a decentralised variable speed drive that is attached to the motor. “The decentralised topology allows for the customer to save installation costs, reduce long shielded cable runs and reduce the need for electrical cabinets,” Martin says.

Optimising the combination of mechanical and electrical solutions and flexibility is what Martin says makes NORD stand out from other drive providers in the logistics sector.

Plug-and-play NORD recognised the need to make these solutions as easy to use as possible and implemented a plug and play system to its product range.

“Our customers really appreciate that everything is plug and play, there are no complications on their side and we can offer this option at a very competitive price,” Martin says.

The NORD range of products also enables complete drive solutions, meaning the customer does not have to go to a range of providers. “From selection and commissioning to service, we provide support to our customers in all phases of the project and supply a quality German made product,” he says.

Keeping cool An accessory to the NORD variable speed drive features an option to operate a motor locally. When considering the amount of motors that would be found in an airport and how many different locations are managed at once, a computer failure could affect the airports entire operations.

“We also have an option to run the drive locally. What this does is if, for some reason, communication is lost to the motors, airport operatives can go to an individual drive to run the conveyor and continue to deliver the bags to their customers in a timely manner,” Martin says.

Global expertise

NORD has developed an optimised drive system thiat is ideal for use on baggage conveyor belts.

NORD DRIVESYSTEMS has powered airport systems in Liverpool, Birmingham and Hamburg, as well as Ottawa, Johannesburg and Taipei.

Keeping air traffic running smoothly is not an easy feat but with more than 50 years’ experience and a wide offering of complete mechanical, electrical and electronic drives NORD provides more than just the delivery of components but also expert advice and customised solutions for any kind of drive application. logisticsmagazine.com.au | 25

Profile

Yojee’s aim is to bring logistics companies into the digital era.

A rising force in freight movement Sydney start-up Yojee has been developing technology solutions for specialised logistics organisations both at home and abroad. LMH speaks with Ed Clarke, co-founder and CEO. Ed Clarke is a tech entrepeneur and currently co-founder and CEO of Yojee.

26 | Logistics&MaterialsHandling October/November 2018

T

he Australian start-up scene is lively and booming. Investment in start-ups is growing faster in Australia than in Europe or the US, growing 65 per cent between 2016 and 2017.

More than 35 per cent of the nation’s start-ups begin their life in Sydney, bringing innovative ideas to the Australian economy and Yojee is one of them. Yojee’s aim is to bring logistics companies into the digital era by utilising blockchain technology, artificial intelligence and machine learning for fleet management.

Yojee recently announced it will collaborate on projects with logistics giants UPS and DB Schenker. Logistics & Materials Handling caught up with Ed Clark, Co-Founder and Chief Executive Officer, to understand the company’s offering and what he thinks artificial intelligence solutions can do for the logistics industry.

Ed Clarke is a technology entrepreneur and ex-Sydney Swans rookie player. He has extensive experience in taking innovative platforms to market in areas such as realtime communication, big data marketing and e-commerce. He was Vice-President of Sales at Temasys, a communications technology provider,

and was part of a team that IBM recognised as one of the “Top-5 global start-ups to watch in 2014.”

As one of the first companies outside of the banking sector to provide a blockchain network, Yojee is seeking to enable the logistics industry to keep up with the boom in e-commerce.

“A number of years ago, as e-commerce started to develop, there were significant problems for the supply chain and logistics industry.

Businesses were finding it difficult to move goods from the digital to the physical,” Ed says.

Yojee has been quickly developing a delivery network across the Asia-Pacific region. The concept behind the business is to bring to market a platform that manages deliveries on a mass scale. “We aim to transform the global logistics industry by providing state-of-the-art blockchain and artificial intelligence backed technology empowering shippers and carriers to work together across the entire supply chain,” Ed says.

Traceability and visibility The company is primarily based in the Asia Pacific region and has been working with Lion Parcel, a delivery service in Indonesia

Profile to digitise its network. “In Vietnam, Asia, Indonesia there is a lot of sub-partners and multimodal networks, parcels are passed on jobs through partners but they often loose visibility,” Ed says.

Logistics providers often have four or five subcontractors and once a parcel reaches a new supplier the original provider losses visibility.

According to Ed, the logistics industry in its current form is very fragmented.

“Even the big guys like DB Schenker and UPS still have the same problems, it’s all about traceability and visibility. Once you add different layers and suppliers with their own networks this gets increasingly hard,” he says.

Adaptable model Ed recognised that in order to improve traceability and visibility any technology offering should be accessible to all businesses regardless of their size. “We have established a delivery-based pricing model so that the bigger companies can work with the smaller ones,” he says.

Ed believes that with this model, nobody is priced out. He thinks this is important in a multimodal industry that often engages a number of different suppliers to make a single delivery.

“The consumer wants to know delivery windows – in this day and age they aren’t willing to be left waiting for a couple of hours. There is a

lot more responsibility on the carrier to provide real-time information so data is very powerful.”

Last-mile delivery and labour costs When comparing the Asian market to Australia Ed believes it’s important to keep in mind the differences in labour costs, and the vehicles used in the logistics operation. “You have to consider the cost of labour when making a decision about how you will manage your operation and how the technology can help you. In Australia, the labour cost is very high, so it changes the type of vehicle you want to work with. If a driver is costing a lot per hour, then you want to make sure that there is enough deliveries in the vehicle. However, in Indonesia, for example, labour cost is lower and there is a huge traffic problem. As a result motorbikes are often used which make fewer deliveries per vehicle.”

Yojee is able to look at existing data and work with each individual business, regardless of their size or preferred transport mode. “We run the company’s existing historical data and then work on a simulated model to increase efficiency,” Ed says.

Most logistics companies, regardless of the mode of transport used, are looking to reduce wait time, he says. “It’s about maximising itinerary and minimising wait time. Time-slots are very important, waiting time is wasting time and this is particularly inefficient when labour costs are high.”

Tech in logistics Ed says the logistics industry is an old industry and in many ways it is struggling to make sense of the technology that could help.

“The market is so big. Everyone is struggling – people are looking for solutions and opportunities.

“Take blockchain, everyone knows it’s the future, everyone is trying to work out their own way of doing digital transformation. But, for a lot of people this is a struggle – and that’s where we can help,” he says.

For Ed, if the larger companies can use smaller subcontractors but they all use the same technology platform then all parties can benefit from transparency and visibility.

“The bigger companies that are implementing these digital strategies still need to work with smaller contractors, but if they all share the same system then the data can be used effectively. We found that the companies using our software have asked their subcontractors to use the software because they rely on it.”

This is where Ed believes the Yojee offering will help transform logistics. “The Yojee platform incorporates state-of-the-art technology and APIs so powerful that small to medium businesses have the ability to pull parcel capacity off the Yojee grid to enable greater revenue and increased efficiencies.

Even if you only have four trucks, the system is affordable.”

Yojee is working with Lion Parcel, a delivery service in Indonesia.

logisticsmagazine.com.au | 27

Technology

Pain for no gain As data becomes more critical in logistics operations, workers are finding scanning processes increasingly difficult and potentially harmful. Panasonic’s Clare Hose presents a solution.

According to Clare, there is a growing need for workers to have a comfortable and easy to use mobile device.

A

recent Panasonic study found that logistics and delivery workers say that poorly designed mobile barcode scanners are affecting their work and productivity. According to the Scanning Pain for No Gain report, 63 per cent reported that they suffered from wrist or arm arches and pains, with 69 per cent forced to take time off for an average of two and three quarter sick days in the past year.

Repetitive Strain Injury (RSI) also affected 52 per cent of the workforce interviewed. The report, undertaken by an independent market research company Opinion Matters and commissioned

by Panasonic Business, reported that 60 per cent of workers from the delivery, warehouse and logistics industry felt their mobile barcode scanner device was only fairly effective or not effective at all.

“The logistics industry has been implementing mobile strategies for years, but with the rise of the ‘digital supply chain’, investing in technology that effectively manages the end-to-end supply chain has become a strategic imperative for many operations,” Clare Hose, Product Manager for Toughbook at Panasonic says.

28 | Logistics&MaterialsHandling October/November 2018

Every aspect of the logistics industry is now embracing digitalisation, the industry is increasingly using mobile devices to capture and transmit field data and integrate people, processes and technologies.

“Growing complexities, increased competition and changing customer demands are all pushing companies to leverage mobility in a way that helps to streamline their supply chains, speed-up delivery times, more efficiently route and schedule their shipments and gain real-time visibility of their assets,” Clare says.

There is a growing need for workers to have a comfortable, easy to use and ruggedised mobile device in such a diverse industrial environment as logistics.

Demand for digitisation According to Clare, as forklifts are a vital part of warehousing and logistics, digitising this process is a no-brainer. “No matter what the size of your fleet, the computers you choose to mount on your forklifts are a crucial investment in the smooth and efficient running of your operation.

“When operators have access to accurate, realtime information from a central management

system while they are picking and putting away, managing inventory or tracking and recording assets the benefits are numerous, Clare says.

However, many of the current devices on the market do not meet evolving requirements adequately. The Panasonic report found that the biggest stress factors for warehouse workers were the slow and cumbersome scanning processes. In addition to this problem, as the industry’s demand for digitisation increases, surveyed individuals believed that scanning requirements were dramatically rising, with the average worker saying they scanned 197 times a day, this is a year-on-year growth of 24 per cent.

Smart solutions The report found that workers who were unhappy with their mobile devices said that significant productivity improvements could be made with design changes. With this in mind, Clare believes that Panasonic has developed a handheld device that is perfect for the logistics and transport market.

“The Toughpad FZ-N1 device is designed to meet the increasing demands placed on workers by boosting productivity while guarding against

Technology

For Panasonic, the logistics industry needs to think about the challenges that workers face.

impacts on employee’s health,” Clare says.

The FZ-N1’s ergonomic angled barcode reader has been created for ease of use and is engineered to eliminate the need for tilting.

According to Clare, this means no more bending of elbows, wrists, or muscle strain and fatigue.

“This has the potential to increase efficiency and at the same time provide greater comfort for workers.”

The military-grade device functions as a mobile bar-code reader, phone and tablet device and is built to protect against drops, extreme weather conditions, vibrations, dust and rain.

“Industries with highly mobile workforces, like the logistics industry – where the workplace includes harsh environments – are likely to experience a greater benefit from the deployment of rugged devices, such as Toughbook to their mobile workforce.”

The product has been well-received in rugged industries such as mining and the military.

One of Panasonic’s customers is Barrett Communications solutions – a designer and manufacturer of free-to-air long distance radio communications technology for the military.

“Toughbook is perfect for remote field operations because it’s rugged and reliable to military standards. Often, we’re working without mains power and with intermittent generators, so we need technology that has extended battery

life. The ultra-bright Toughbook screen can be easily read in the strongest direct sunlight, and the unit can stand up to use in swirling dust, powerful winds and driving rain,” Ben Jackson, International Support Manager at Barrett Communications says.

Panasonic launched its first Toughbook product more than 20 years ago and, according to Clare they have created their own niche in

a world of mobile technology, redefining the possibilities of access to data and applications in the most challenging of environments.

“Toughbook doesn’t just lead the ruggedised PC and tablet market, it defined it. From our earliest days, we have remained true to our heritage as an engineering company, embodying the ethos of ‘voice of the customer’ in everything we do.”

For Panasonic, the commitment to listening to what their customers want allows them to deliver the specialist and high-quality devices.

To understand the true benefits of deploying Toughbook-based solutions, Clare believes the industry needs to begin thinking about the challenges that mobile workers face and ask: what’s stopping them from being productive?

“The chances are a lot of these issues can be traced back to a problem with data or application access in the field. It could be an inability to connect to central systems. It could be the lack of a suitable power source that would allow their technology to stay operational. It could be something as simple as rain or sunshine that prevented them from working quickly and effectively.”

Clare says this is where the Toughbook story begins. “Panasonic equips Toughbook mobile PCs and tablets with technology that is uniquely designed to overcome the access barriers encountered by countless professionals, in many industries, every day.”

Panasonic offers its own niche in a world of mobile technology.

logisticsmagazine.com.au | 29

ALC Column

FREIGHT OPERATORS ARE SWITCHED ON TO ELECTRIC VEHICLE (EV) POTENTIAL Lachlan Benson, Interim CEO, Australian Logistics Council

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s regular readers of Logistics & Material Handling will be aware, the Commonwealth Government is currently engaged in the preparation of Australia’s first comprehensive National Freight and Supply Chain Strategy, due to be presented in May 2019.

The purpose of that Strategy will be to establish a 20-year framework that will help Australia meet its future freight task and ensure we remain internationally competitive.

Trying to envisage what our freight network might look like 20 years hence is a somewhat daunting task when one considers the transformational impact that technological changes can have on the way we live and do business.

After all, if we think back 20 years to 1998, the concept of a smartphone was alien to most Australians, and online shopping was a niche experience pursued by only the most committed technophiles.

Today, online shopping is a ubiquitous offering among retailers, and has significantly shifted consumer behaviour, as well as expectations around rapid delivery times.

In framing a Strategy for the next 20 years, it is prudent for policy makers to take into account the likelihood that technology will engender other significant changes in our freight networks.

In particular, they need to consider that freight vehicles two decades from now will look very different to those seen on our roads today.

Moreover, if technology now exists that can make those vehicles more efficient, cheaper for operators to use over their life-cycle and more environmentally friends, policy makers should

30 | Logistics&MaterialsHandling October/November 2018

do more than consider industry adoption of such technology; they should actively encourage it.

ALC and electric vehicles In June this year, ALC moved to establish an Electric Vehicles Working Group, after a series of discussions with leading industry participants revealed a significant degree of enthusiasm about the potential application of electric vehicles in the industry.

The Working Group comprises a large number of ALC member companies that are committed to improving the uptake of electric vehicles operating within Australia’s freight logistics network.

There are several good reasons why forwardthinking freight logistics operators are eager to make electric freight vehicles a more common sight on our roads.

The most significant of these relates to the obvious environmental benefits.

The current and potential effects of climate change and particulate emissions – including temperature rises, sea level rises and air pollution– are causing logistics operators to actively pursue ways to reduce their carbon footprints.

Of course, logistics consumers and investors are also conscious of these effects, and the maintenance of a positive public profile is a powerful incentive for many logistics operators to improve their environmental performance.

Electric vehicles offer an effective and visible way for logistics operators to reduce greenhouse gas emissions. A study undertaken for the EU found that an electric vehicle using electricity generated from a coal fired power plant is only using two-thirds of the energy a petrol/diesel vehicle would use to travel the same distance.

Of course, the greenhouse gas and particulate emissions are further decreased when electric vehicles are fuelled by renewable energy.

On a related note, electric vehicles produce fewer particulates than internal combustion

engines, and so can lead to improved air quality.

While Australia’s major metropolitan areas usually experience good air quality, at least by global standards, pollutant concentrations are becoming an increasing concern, particularly in our larger cities.

Business benefits However, electric vehicles can also offer other significant operational benefits for freight logistics operators that extend well beyond environmental considerations.

Generally speaking, electric vehicles also offer a lower noise profile than conventional internal combustion engines, and thus reduce noise pollution.

This is important consideration for freight vehicles servicing large retailers (especially supermarkets), who are often not able deliver produce to stores at night due to noise curfews enforced by local governments. The use of quieter electric vehicles is one way to overcome this existing barrier to greater supply chain efficiency.

There is a further consideration that makes electric vehicles an attractive option for freight logistics operators – particularly those who operate large vehicle fleets.

Electric vehicles are able to avoid Fuel Excise Tax – which is currently levied at $0.409 per litre. Although upfront capital costs for electric vehicles are higher than for petrol/diesel vehicles, it is also often cheaper to maintain and operate an electric vehicle.

Consequently, many industry participants now believe that when life cycle costs are taken into account, it is ultimately cheaper to purchase an electric vehicle.

Industry is beginning to move Some of Australia’s largest logistics providers – including DHL, Australia Post and Linfox - are already incorporating electric vehicles into their delivery models.

Linfox Logistics, the Asia-Pacific region’s

ALC Column

largest privately owned logistics company, has publicly indicated it wishes to be the “first mover” on electric trucks, and is trialling the technology at purpose built facilities.

To further prepare, Linfox is investing in necessary infrastructure, including 500kW of solar panels installed at their warehouses to date, with plans to increase this energy generation across Australia. Linfox is also implementing electric vehicle material handling equipment at their sites and building electric vehicle requirements into their new sites.

Qube is similarly preparing for an electric vehicle future by installing charging infrastructure as its major new Moorebank Intermodal Terminal in Western Sydney, which is currently under construction.

DHL is aiming to deliver 70% of its first and last mile services with clean pick-up and delivery solutions by 2025. DHL is currently using two electric vehicles –Renault Kangoo ZE (zero emissions) Vans – to pick-up and deliver parcels in Melbourne and Sydney. In 2019-2020 DHL plans to extend its electric vehicle fleet using different vehicle manufacturers and expanding their use throughout Australia.

Australia Post is now rolling-out 150 e-vehicles in New South Wales, with a national roll-out of 1,000 e-vehicles also being planned for use in the organisation’s substantial parcel delivery network. Australia Post has also installed solar panels capable of producing 2.1 megawatts of energy at its Sydney Parcel Facility. At the time of installation, in November 2017, it was Australia’s largest commercial solar system on an industrial roof.

Addressing range anxiety Despite this clear industry engagement, there remains a major stumbling block to more widespread adoption of electric vehicles in Australia’s freight logistics industry.

This was highlighted by ALC in its recent submission to an Inquiry being undertaken by the Senate Select Committee on Electric

Vehicles, which is examining ways the Commonwealth Government can help address Australia’s comparatively sluggish uptake.

Research undertaken by the Electric Vehicle Council reveals that two thirds of motorists indicate that a lack of adequate charging infrastructure is their greatest hesitation in purchasing an electric vehicle.

This “range anxiety” will need to be addressed in order to significantly increase the number of electric vehicles in Australia’s logistics fleet.

As an example, in June 2017 there were just two vehicle charging stations in the Northern Territory – and just 476 charging stations across Australia. When compared with an estimated 6,400 petrol stations in Australia, that’s 1 charging station for every 13.4 petrol stations.

This paucity of charging infrastructure in Australia is hampering any widespread move towards electric vehicle use in logistics – particularly outside major metropolitan areas.

ALC has suggested that the Commonwealth Government can play a leading role in overcoming this problem by incentivising the installation of charging infrastructure for electric freight vehicles at distribution centres and warehouse facilities. Such incentives could take the form of low-interest loans issued through the Clean Energy Finance Corporation.

The Commonwealth could play a further leadership role by ensuring major freight infrastructure projects in which it invests incorporate charging infrastructure in their design. The Western Sydney Airport is a prime example of the sort of project that would benefit from this approach, given the surrounding aerotropolis is set to become a major freight logistics hub.

Confidence needed on energy supply Finally, policy makers will need to assure freight logistics operators that Australia will have access to reliable and affordable sources of energy.

If Australia continues to experience largescale black outs during summer months, as has occurred in some major cities in recent years, it will not encourage freight operators to make the switch to electric vehicles.

This means it is important to ensure the provision of charging infrastructure that is still capable of operation when there are interruptions to regular electricity supplies.

One of the recommendations ALC made in its submission to the Senate Select Committee was that the Commonwealth Government use existing policy programs to encourage investment in charging infrastructure driven by solar and battery power.

One possible way to achieve this is through the Smart Cities and Suburbs Program, which offers grants to support innovative technological solutions to urban challenges.

One initiative currently being supported by that program is Smart Move Newcastle – a project designed to deliver (amongst other things) solar and battery powered electric vehicle charging points.

It is intended for this project to be used as an Australian benchmark, with results made publicly available.

Should it prove successful, it could be used by the Commonwealth as the basis for a larger-scale national initiative that would help enhance market confidence in the reliability of charging infrastructure – and thus encourage more freight operators to make the switch to electric vehicles.

logisticsmagazine.com.au | 31

Warehousing

Build it and they will come By engaging Vaughan Constructions in the delivery of its new facility, GMK Logistics was ready to expand its business and meet new demands sooner than expected.

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hen GMK Logistics, one of Australia’s largest logistics suppliers to the warehousing flooring industry, outgrew its warehouse at Smeaton Grange in Sydney the company knew it wanted to build a well advanced and purpose-built facility for its new premises.

Following an extensive search of potential sites, GMK decided to develop a site at a nearby facility in Gregory Hills, Sydney. The plan for the warehouse was to build a 15,000-square metre warehouse and 1,300-square metre office on the 16,300-square metre site, more than double the size of the previous facility.

Having previously worked with Vaughan Constructions, GMK Logistics once again

32 | Logistics&MaterialsHandling October/November 2018

partnered with recently crowned Master Builder of the Year by the Master Builders Association Victoria Awards 2018 to develop a new facility fit for the company’s significant growth.

Preparing for success Vaughan Constructions understands the importance of client-focused based projects and has more than six decades of experience in the Australian building and property sector.

According to Colm O’Reilly, Construction Manager for New South Wales, Vaughan’s philosophy is to build customers for life.

“GMK had outgrown their previous facility – they were busting at the seams. With more growth already projected we had to ensure that we built an adequate facility,” Colm says.

He says Vaughan Constructions offer a one-stop shop for the customer. From inception to operation. Vaughan use in-house expertise to develop a design to the client’s operational requirements and to maximise land efficiency.

“We go through the entire process with the customer, we work out exactly what they want, how they want the facility to function and operate. Those fundamentals and details are developed from the conceptual design right through to working design with operation in mind.”

Vaughan Construction makes sure that the design features optimum efficiencies. “In this case that included ensuring that all freight came in one side of the warehouse and out of the other this aided the operation both internally and

Warehousing

externally. With a one-way system of goods and traffic,’ Colm says.

GMK has a fleet of more than 60 vehicles.

Future-proofing Covering four hectares of land, the original proposal was for a 16,300-square metre warehouse. “The original timeline was to expand within five years, but GMK were growing quickly and before we were finished building the warehouse GMK were already looking to expand,” Colm says.

Vaughan ensured that every aspect of the building allowed for GMK’s future expansion plans. This included town planning, where the future expansion was included with the original development consent, reducing the time to commence building considerably.

According to Colm, the future-proofing is largely to do with the building services and the structure. “We make sure everything has been designed for the new expansion. In this project we wanted to extend at the end wall of the warehouse. The design features meant that we could build the fully weathered warehouse

GMK’s new facility is in Gregory Hills, Sydney.

extension and connect to the existing without exposing any warehouse space or product to the elements during construction. All we needed to do was remove some cladding and supports from the inside to open up the two spaces.”

After opening the facility in 2016, it was soon at capacity with two of GMK’s largest customers entrusting the company with the care of their product in this new facility. Accordingly, in 2017, GMK and Vaughan commenced construction of the extra 6,100 square metre extension.

Knowing that they had the capacity to expand, gave Gary, General Manager at GMK Logistics, a lot of confidence. “Vaughan have a great team of experts. They are very professional. We had weekly meetings and whatever the team needed they always had someone across it.”

“We knew we had the option for an extension in five years but by the end of the first year we had already reconfigured our racking. Vaughan’s design gave us the confidence to take on new business knowing that we could expand with ease. We had a build it and they will come attitude. And they did,” Gary says.

Vaughan recognises that if you go back and retrofit for expansion it can be very expensive and take a lot of time. “A lot of expense can be wasted on upgrading and extending completed building services, particularly where demolition is required to expose them for connection or upgrade. So everything needed to be considered, to ensure there was sufficient capacity for the expansion but we didn’t over capitalise on uncertainties. In terms of water supply, sprinkler tanks or future power requirements, these were all completed to predetermined requirements of the expansion. Whereas infrastructure like stormwater detention were constructed temporarily in an open pit until the final requirements were finalised during the warehouse expansion design. Similarly, we

ensured where possible that no services would be made redundant by the expansion,” Colm says.

“The full extension was completed in April 2018 and has already achieved strong uptake from new and existing customers,” Gary says.

GMK Logistics is a national specialised logistics service to the flooring industry in Australia. The company is a subsidiary of CTI Logistics Limited, which is listed on the Australian Stock Exchange. With a fleet of more than 60 vehicles and fully outsourced warehousing solutions. GMK’s modern warehousing facilities allows them to deliver products on time and in good condition, anywhere in Australia.

Working with Vaughan Constructions gave them the confidence they need to concentrate on their customers’ needs and requirements and the ability to capitalise on new business opportunities.

The new warehouse covers 16,300 square metres.

logisticsmagazine.com.au | 33

Warehousing

Addressing industry-wide equipment supply issues Delivery delays and stock availability are common difficulties for logistics businesses operating in Australia. George Pappas at Linde Materials Handling presents a solution to dramatically improve this issue.

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Warehousing

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Linde has made dramatically improved stock availability its focus.

ocal material handling equipment users have for years found themselves in a unique situation when it comes to sourcing the appropriate machines for their needs.

On one hand the Australian market is serviced by all the major global suppliers, providing excellent choice. On the other hand, the relatively small size of the market and its distance from equipment manufacturing centres frequently leads to lengthy delivery delays.

This situation is exacerbated by the requirement for bespoke material handling equipment solutions in many instances and the temptation to settle for “what’s available now” has caused major grief in businesses of all sizes.

Delivery delays of anything from 12 to 30 weeks have become part of new equipment and fleet turnover planning by necessity, regardless of the chosen supplier.

Now Linde Material Handling Australia has made dramatically-improved stock availability the focus of a major multi-million-dollar investment project to permanently address this issue.

The investment is part of Linde’s ongoing commitment to anticipate customer requirements and to address market-wide delivery delay issues. It sits alongside similarly important developments which will see Linde broadly extend Lithium-ion battery availability and roll out Linde Robotics technology.

“We have made a multi-million-dollar decision to invest in equipment which we know is in high demand in the material handling equipment market place, and have it available ex-stock,” George Pappas, Senior Director, Service and Sales at Linde says.

He pointed to the major benefit for rental and purchase customers as the equipment covered by the plan will not incur the normal production and shipping-related delivery delays experienced for equipment currently ordered from all the big industry players.

George stresses the decision is a permanent one, rather than a short-term measure. “We have made this business-transforming investment decision to forward-order high demand stock which we know is suitable for both the corporate and retail market, for the purpose of short term rental, long term rental and outright purchase,” he says.

“The hundreds of pieces of equipment covered by this undertaking range from counterbalance electric forklift trucks, to high productivity

counterbalance IC forklift trucks in our Performance Plus 2.5 tonne capacity range.

“We have also ordered a significant number of reach trucks and pallet trucks including the MT12 – a unique medium duty lithium ion battery-powered 1.2 tonne capacity, high manoeuvrability truck for use in back-of-truck and as a replacement for hand pallet trucks and manual pallet trucks.”

Linde’s aim is to ensure it remains close to the market in terms of supply through its short-term rental fleet and for all types of new equipment from the smallest application to large enterprise requirements. In doing so it has taken on the risks associated with peaks and troughs in the market.

“The days of ordering from the factory only on receipt of customer orders are behind us now as Linde moves up to the next level of customer responsiveness and support,” George says.

The widely used Linde 115 reach truck, is part of Linde’s plans for ex-stock availability, highlighting the company’s contention it is not simply stocking up on equipment which is just fodder for the capital equipment market.”

Linde is also demonstrating its new approach on the pricing front. “These are high specification machines being put to the market at some of the most aggressive prices even seen from Linde in both the short term and the long-term rental market,” George says.

“Our goal is to ultimately have application specific machines which are customer rental available with the shortest possible lead time.

“Within this program we are doing our best to be genuinely responsive to demand without the long list of terms and conditions which frequently surround rental machine availability. We are doing our best to make sure we have the right machines with the shortest possible delay.”

Linde claims its actions will address frustrations in the market around the availability of stock and allow it to respond to large segments of the market with immediate hire.

“I stress that this is a genuine, on-going approach, backed by tens of millions of dollars of investment and not just a limited- time promotion,” George says.

“We continue to have a clear focus on highly customised solutions for markets and applications which require them, but we are also better able to meet the demands of the general short-term rental market with this increased stock commitment.” logisticsmagazine.com.au | 35

Supply chain

Reducing risk by improving supply chain resilience Building prevention and recovery programs for minimising supply chain risk is vital, according to commercial property insurer FM Global. Here, the company offers tips on how to identify and analysis potential risks.

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upply chain concerns are big news when they reach national scale. Earlier this year, shivers were sent through the business community when reports surfaced that Australia only had 23 days of fuel in reserve. It was a startling reminder of just how exposed our economy is to a global oil crisis.

The ongoing crisis in Syria and wider tensions in the Middle East mean this threat is constantly bubbling away under the surface. Experts say the impact would be felt within two weeks, with

36 | Logistics&MaterialsHandling October/November 2018

supply of food and medicines among the biggest fears. Not surprisingly, the Federal Government responded by announcing an immediate review of fuel security.

Although doomsday scenarios like this are at the extreme end of the scale, supply chain risk is an everyday concern for any business that operates in or is serviced by the logistics industry.

Businesses are investing heavily in technology to improve operational efficiency

and meet customer demand for faster, more convenient delivery. Increasingly data-driven modern business practices bring greater exposure to cybersecurity threats. Global ransomware events like WannaCry and the more sophisticated GoldenEye strain of Petya have triggered losses running into billions of dollars.

And while cybersecurity has quickly become established as a major concern for every business supply chain, managing physical risk has also become increasingly complex

Supply chain

Cyber security has quickly become established as a major concern for every business supply chain.

standstill. Apple famously saw billions wiped off its share price a few years back after unethical work practices were exposed in its supply chain.

Fast forward to today and increasingly frosty relations between China and the US threaten to impact the supply of rare earth minerals needed by consumer electronics and technology manufacturers. Tomorrow it could be your business caught in the crosshairs.

Building your resilience Earlier this year it was revealed that Australia only has 23 days of fuel in reserve.

in today’s truly global market. The world’s biggest brands have tens or even hundreds of thousands of suppliers. And each of those suppliers has its own supply chain.

It’s one thing to manage risk within your own business but quite another to handle risk at this level of scale and complexity. There are natural disasters to consider, differing risk qualities, legal and regulatory inconsistences, health and safety conditions and possible trade disputes.

There are always stories in the news with an impact on somebody’s supply chain. US pharmaceutical industry was threatened last year after Hurricane Maria ripped through Puerto Rico and brought production to a

It’s impossible to mitigate all of the risks in your supply chain but there are lots of ways to minimise your exposure. Whatever line of business you’re in, you need to focus on building your resilience with targeted investment in prevention and recovery programs.

As one of the world’s largest commercial property insurers, FM Global has about 1,800 practicing engineers. Using this experience, FM Global will help identify and analyse potential risks, offering clients a clear understanding of their specific exposures.

We’ve also developed the FM Global Resilience Index, helping you make more informed business decisions with data and in-depth analysis covering 130 countries and territories. Each country’s score is calculated using a series of economic, risk-quality and supply-chain drivers.

Switzerland, for example, ranks at the top of the index because of its high-quality infrastructure and local suppliers, political stability, low levels of corruption and high economic productivity. Sweden also features prominently for similar reasons including its outstanding supply chain visibility.

At the other end of the index are Haiti, Venezuela and Nepal. Haiti is severely hampered by its limited economic means and exposure to natural disasters, while Venezuela is overly dependent on oil and exposed to corruption.

At a more granular level, you might want to compare the resilience of two or more countries where you have new business opportunities, or weigh up the risks associated with potential suppliers located in different locations.

Building resilience is about minimising vulnerability to loss while strengthening the ability to recover from it. You’ll never completely eradicate supply chain risk but by identifying your most serious exposures and taking action to reduce them, you will reduce the likelihood of serious disruption. That’s good for your customers and good for your business.

Greg Duncan is FM Global’s Operations Vice President, Client Services. He leads a team of account managers, underwriters and technical specialists providing property insurance to some of the largest companies in Australia and New Zealand. logisticsmagazine.com.au | 37

People on the move

The latest appointments in the logistics and materials handling sector.

New Commercial Manager for Port of Melbourne

Philip Davies appointed chair of ALC

TM Insight appoints former Toll Director to executive team

The Port of Melbourne has appointed Jim Cooper to the role of Executive General Manager, Commercial.

Assuming responsibility for the Port of Melbourne’s business service functions, the Port said Jim Cooper will bring a wealth of related experience given his long career as an executive in the Australian ports industry.

Jim served as Chief Executive Officer at the Port of Portland for 8 years, where he oversaw strong growth in trade and the development of new infrastructure.

The Board of the Australian Logistics Council (ALC) has announced that Philip Davies has been appointed as the new Chair of ALC. In an announcement, the ALC said Philip Davies is a respected figure in Australia and internationally, with over 25 years of experience in policy development, organisational management and the delivery of complex infrastructure projects.

Most recently, Philip was Chief Executive Officer of Infrastructure Australia.

TM Insight has announced the appointment of Dominic Rego, former Managing Partner of Ginkgo Management Consulting and former Director of Business Development at Toll Group Global, as Managing Director of TM Insight Asia.

In a statement released by TM Insight the company said Dominic has been instrumental in setting the strategic direction and executing the commercial, operating and growth initiative for key fortune 500 companies.

New Chairman appointed to Port Authority of New South Wales Board of Directors

CouriersPlease appoints Head of Process Improvement

Ron Hurley joins Pernod Ricard Pacific as Supply Chain Director

CouriersPlease (CP) has appointed its first-ever process improvement specialist to improve its customer experience and standard operating procedures across the nation. The newly created role is part of CP’s recently established Process Excellence team.

Tara Heylin is the newly appointed Process Improvement Leader, who will review and improve systems and processes across all departments including operations, customer experience, sales, commercial, finance and IT. She joins CP with a Lean Sigma Six Black Belt, a performance methodology that aims to create more streamlined processes.

Pernod Ricard Pacific has announced the appointment of Ron Hurley as Supply Chain Director – a new position that sits as part of the Management Committee within the Pernod Ricard Sydney office in Barangaroo.

To support the company’s business objectives, Ron’s role will look after the strategy, management and direction of all of Pernod Ricard Pacific supply chain activities, including the enhancement and integration of business systems and supply chain capabilities.

Port Authority of New South Wales has welcomed the appointment, by the NSW Governor, of Robert Dunn, as its new Chairman of the Board of Directors.

Robert Dunn has a long association with the Port Authority of New South Wales, having been a Director on the Board since 1 July 2014, and formerly a Director of Sydney Ports Corporation since 2012.

38 | Logistics&MaterialsHandling October/November 2018

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