MHD Apr 2021

APRIL 2021

ISN’T IT IRONIC?

COVER STORY

A GLOBAL SHOWPIECE Toyota’s Lithium-ion forklifts help Schneider Electric reach sustainability and safety targets

Why gentrified industrial areas turned residential need their warehouses back

ROBO BEER

Lion restructures its Tooheys Brewery with Dematic’s Automated Guided Vehicles

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MHD FROM THE EDITOR

MHD Supply Chain Solutions CONTACT MHD Supply Chain Solutions is published by Prime Creative Media 11-15 Buckhurst Street, South Melbourne VIC 3205 Telephone: (+61) 03 9690 8766 Website: www.primecreativemedia.com.au

THE TEAM CEO: John Murphy Publisher: Christine Clancy Group Managing Editor: Sarah Baker Assistant Editor: Edward Cranswick Journalist: Emilie Baxter Business Development Manager: Beth Jarvis Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Kerry Pert, Madeline McCarty Client Success Manager: Janine Clements

FOR ADVERTISING OPTIONS Contact: Beth Jarvis beth.jarvis@primecreative.com.au

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ACKNOWLEDGEMENT MHD Supply Chain Solutions magazine is recognised by the Australian Supply Chain Institute, the Chartered Institute of Logistics and Transport Australia, the Supply Chain and Logistics Association of Australia and the Singapore Logistics and Supply Chain Management Society.

ARTICLES All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

COPYRIGHT MHD magazine is owned by Prime Creative Media.

All material in MHD is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material.

While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in MHD are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

WHEN BOOMING IS NOT ENOUGH

W

hen it comes to describing property markets, ‘booming’ seems a favourite adjective among property writers when things are going well.

To describe the Australian industrial property market as booming, however, seems somewhat inadequate at this time. While the market is certainly thriving, booming doesn’t quite cover the complexity of the story.

‘Abundant’ adds one layer of context. As we report in this edition, available warehousing space is hitting record levels. The Knight Frank National Industrial Market found in March that new industrial developments on the eastern seaboard have reached a 13-year high at two million sqm, with another 2.2 million in the pipeline for 2021 (page 8).

‘Coveted’ further builds on the narrative. As CBRE’s Cameron Grier tells MHD (page 12), he hasn’t seen this level of leasing enquiries in nearly 20 years. Almost every vacant building has two to three runners bidding for the spots.

But in addition to describing the positive nature of the market, we need to pay homage to the transformational nature of the current landscape. The shift to e-commerce is having a remarkable effect on the logistics industry which, in turn, is having a fascinating effect on industrial retail.

As TMX’s Andrew Maher defines so well in this edition (see page 23) COVID-19 stimulated the creeping trend of online shopping into a new normal. The result is not only an increase in warehousing needs, but a change in where those warehouses need to go. Central warehouses no longer feed a string of retail shops, instead they need to feed – or even become – a peppering of fulfilment centres closer to home shoppers.

The shift has caused a rather ironic situation. As towns have turned to cities, industrial hubs have been bought out by developers and turned into gentrified residential neighbourhoods. Warehouses have moved further out, but we now need to move them back in to be closer to home shoppers.

Just as all shifts pose challenges, the property sector is finding clever solutions, with some landlords taking a flexible, cross-sector approach by helping businesses see the value in emptying retail locations to serve as fulfilment centres closer to residents.

While no adjective tells the full story, we hope this edition of MHD provides some valuable insights into the current developments of the industrial property sector in Australia.

Sarah Baker Managing Editor sarah.baker@primecreative.com.au

MHD Supply Chain

MHD APRIL 2021 | 3

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APRIL 2021

ISSUE #3 VOLUME 51

THIS ISSUE 18

COVER STORY

18 A showpiece of safety and sustainability

SUPPLY CHAIN 14 Optimising cash flow with Esker 27 Standing out in a sea of talent 35 Prological ensures supply chain makes the difference 52 Processing with Ferag 62 Geotab brings unfiltered access to data 64 Monitoring with Sick

COVER STORY

INDUSTRIAL PROPERTY 8 Industrial supply hits 13-year high 12 Just-in-case strategy drives bigger sheds 23 The new asset class 39 South Australian Produce Market 44 Altitude at Bankstown Airport 47 uTenant, from start-up to scale-up

MHD SUPPLY CHAIN SOLUTIONS

MATERIALS HANDLING 10 Ozkor plastic pallets are tried and tested

APRIL 2021

31 Managing warehouse power demands

APRIL 2021

42

oxing Lines

oly Bagging Lines

stems

s

equipment

ISN’T IT IRONIC?

Why gentrified industrial areas turned residential need their warehouses back

COVER STORY

A GLOBAL SHOWPIECE

ROBO BEER

Lion restructures its Tooheys Brewery with Dematic’s Automated Guided Vehicles

Toyota’s Lithium-ion forklifts help Schneider Electric reach sustainability and safety targets

58

42 Future-proofing Toohey’s brewery 50 An expanding portfolio and team 54 Bonfiglioli services the industry 58 Smarter packaging for Ikea 60 Trim and terrific with Toyota

WAREHOUSING 16 Wave joints as safeguards

DEPARTMENTS AND REGULARS

stralia@ferag.com

66 IOT Trends

ON THE COVER

68 Property Focus

Schneider Electric has partnered

70 Associations

with Toyota Material Handling

76 Products

Australia on Lithium Ion

78 People on the move

forklifts to improve safety and sustainability, as a world-first.

MHD APRIL 2021 | 5

MHD NEWS

Largest warehouse in Australia’s history on track

A

mazon’s anticipated robotics fulfilment centre in Western Sydney is set to be complete by the end of the year.

The centre – which is the first of its kind in the southern hemisphere and the largest warehouse to ever be built in Australia – was confirmed as being on track for completion for an end of year reveal.

Located at Goodman and Brickworks’ Oakdale West Industrial Estate, the warehouse will span 200,000 sqm across four levels – the equivalent of Chadstone Shopping Centre or 24 rugby league fields.

So far, more than 1400 people have worked on the construction of the site to complete the buildings shell with 300 additional contractors commencing tomorrow to begin installing the conveyer belt and robotics equipment.

Around 13,500 tonnes of Australian

Craig Fuller, Director of Operations at Amazon Australia stands inside the new Sydney facility. steel has been used to construct the frame, and was erected using 200,000 nuts and bolts.

Once fully operational, the fulfilment centre will house up to 11 million items and be equipped with the most advanced Amazon Robotics technology on the market.

It will also create more than 1500 jobs for people to work alongside the advanced robotics, where robots will help move pods of inventory to increase efficiency while also saving space and allowing for 50 per cent more items to be stowed per square metre.

Amazon Australia Director of Operations Craig Fuller said the centre would be the fifth of its kind and would double Amazon’s operational footprint in Australia.

“Utilising advanced technology, the robotics will enhance the efficiency of our operations as well as the safety of our associates, helping to support our Amazonians as they pick, pack and ship the millions of items housed within the fulfilment centre to customers around the country,” he said.

The robotics facility will be Amazon’s second fulfilment centre in Western Sydney and their fifth in Australia.

$57M upgrade to major Woolworths DC expands facility by 30 per cent

W

oolworths Group’s supply chain and logistics arm, Primary Connect, has unveiled a $57 million upgrade to its Adelaide Regional DC, improving service to 250 retail stores across South Australia and NT. The footprint of the DC has grown by around 30 per cent and is now equivalent in size to four Adelaide Ovals, now a total floor space of 94,000 square metres.

With the extra space, the DC can sort and distribute additional volume and an expanded range of products.

The centre will improve service to 250 Woolworths Group retail outlets across South Australia and the Northern Territory and has been expanded to handle 2500 extra product lines.

Woolworths Group’s Primary Connect Managing Director Paul Graham said the importance of the group’s supply chain infrastructure has come into sharp focus during the pandemic.

6 | MHD APRIL 2021

“With this $57m upgrade, we’re better placed than ever to support the essential food and grocery needs of South Australians,” he said.

“The extra capacity at the site will allow us to hold even more key essentials such as pasta, noodles, breakfast cereals and baby food in South Australia.”

Paul said that the expansion will shorten delivery lead times on thousands of products across the state “allowing us to better respond to any future surge in demand”.

Mayor of Port Adelaide-Enfield Claire Boan said the upgrade highlights the importance of its city as a logistics hub for all of South Australia.

Renewable energy will help power the DC with a 1.6MVA solar array comprising 3,500 panels. The energy output is equivalent to around 300 Australian households’ consumption and the largest solar installation in the

Primary Connect network.

“We’ve made a multi-million dollar investment in renewable energy at this site with a massive solar installation, which is set to offset around 20 per cent of our annual energy needs,” Paul said.

“We’re also continuing our food rescue partnership with FoodBank South Australia and expect to donate around 250 tonnes of product to help those in need over the next 12 months.

We’re proud to be the largest donor to FoodBank in Australia and continue to provide pro bono freight to support their important mission.”

The expansion of Adelaide Regional Distribution Centre is funded by landowner, Growthpoint Properties, under a new 15-year lease over the entire distribution centre. The project created around 140 local jobs during the construction through Hutchinson Builders.

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MHD INDUSTRIAL PROPERTY

INDUSTRIAL SUPPLY HITS 13-YEAR HIGH The volume of industrial supply in Australia’s east coast cities completed in 2020 and planned for 2021 is at unprecedented levels, spurred on by strong tenant demand for prime warehousing facilities, according to the latest research from Knight Frank.

T

he Knight Frank National Industrial Market Report March 2021 found new industrial development on the eastern seaboard reached two million square metres in 2020; a 13-year high for the sector.

The outlook for 2021 is likely to exceed that level, with 2.2 million square metres in the pipeline; 80 per cent of which is expected to be delivered in Sydney and Melbourne.

Knight Frank Associate Director of Research & Consulting Katy Dean says the intensity of demand from e-commerce and logistics-related users in the industrial market was providing the impetus and confidence for developers to move forward with new projects.

“Developers are trying to keep pace with the growth in tenant demand largely created by the growth in online retailing, with $3.5 billion transacting in 2020, up from $2.3 billion in December 2019.

“The sustained uptick in online sales, which coincided with the pandemic, has translated into increased demand for larger scale and more advanced warehousing to accommodate bigger inventories.

“Increased spending on consumer staples, as well as a rise in the manufacturing and storage of pharma goods, is also driving tenant demand and a strong rebound in the take up of vacant supply on the east coast.”

Katy says new industrial speculative development was booming in 2019 and the short leasing periods on this space provided significant momentum for developers to push ahead with new projects, creating short-term rises in vacant space at the end of 2019 that carried into the start of 2020.

The Knight Frank research found that over the fourth quarter of 2020 there was 732,000sq m in take up in Australia’s

8 | MHD APRIL 2021

Katy Dean, Knight Frank Associate Director of Research & Consulting. east coast industrial market, with a 7 per cent decrease in vacant space over the December quarter to just over 2.22 million square metres, down from 2.39 million square metres in the previous quarter.

This is the largest quarter on quarter decrease in vacant space since Q1 2017.

Knight Frank Partner and National Head of Industrial Logistics Darren Benson says investors had thrown their weight behind the industrial sector, with a significant amount of capital being allocated by REITs for acquisitions and potential future projects.

“While institutions have been actively expanding land banks for a few years, there was a clear shift in strategy last year to increase asset allocations to the sector through their development pipelines,” he says.

“Despite the pandemic, spec schemes are still high on the radar, with most major REITs stepping up their exposure through development.

“Between Dexus, Charter Hall, GPT, Mirvac and ESR there is more than $8 billion in capital for potential future projects, which is hugely significant.”

Darren Benson, Knight Frank Partner and National Head of Industrial Logistics.

The Knight Frank National Industrial Market Report March 2021 found national investment volumes in the industrial property market have risen to a decade high, reaching $8.8 billion in 2020, up from $7.7 billion in 2019, reflecting the increasing popularity of the sector.

The recent Knight Frank Attitudes Survey results, revealed in Knight Frank’s The Wealth Report 2021, found the industrial sector was the top sector of interest for Australian ultra-highnet-worth individuals, with 40 per cent saying they were interested in investing in industrial property.

Other sectors rounding out the top five included agricultural (27 per cent), logistics (22 per cent), healthcare (22 per cent) and residential private rented sector (20 per cent).“Rising industrial property returns are now outperforming the office sector, driven by e-commerce growth and its safehaven status in the wake of COVID-19,” Darren says.

“Portfolio sale and leaseback activity has been high, but the trend is now gaining traction with individual assets.” ■

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MHD MATERIALS HANDLING

TRIED AND TESTED Alan Morgan, National Marketing Manager at Ozkor, reveals how improved load out time wins favour with Australian meat exporters.

T

he quality standard of Australian meat is well respected throughout the world and despite a number of recent setbacks to the industry, exports nevertheless continue to reflect a significant contribution to Australia’s agricultural export market.

Australian red meat processors, however, cannot be complacent in the light of increased competition from overseas suppliers. This is why processing procedures are constantly under review in order to cut out unnecessary activity-based costs. For example, efficient handling procedures of boxed frozen and chilled meat present many challenges, particularly when loading refrigerated shipping containers for export. On the one hand, the high value of each carton of meat means damage can be very expensive. When coupled with manual loading of containers and the price of slip sheets, as well as other associated costs, bottom line profitability can be eroded.

According to leading Australian plastic pallet supplier Ozkor Pty Ltd, its plastic pallet model MP-1165 provides a means to reduce these costs and eliminates the need to use more expensive, and in some cases outmoded, alternatives.

The MP-1165 pallet is especially designed for multi-functional purposes that improve loading and operational efficiencies by enabling forklift operators, using a push /pull attachment, the ability to lift the boxes directly off the top deck of the pallet by accessing two channels over which the boxes are stacked. This means the pallet can be retained and the cartons of meat can then be driven straight into the shipping container and safely stacked.

Reportedly, this enables one man on one counterbalance forklift to load a 40-foot shipping container in under 1 hour, saving significant man hour costs in manual handling and eliminating the need for slip sheets. Furthermore, this means the pallet is retained and ready for re-use in the packaging 10 | MHD APRIL 2021

The MP-1165 pallet allows forklift operator to lift the boxes directly off the top deck of the pallet by accessing two channels over which the boxes are stacked. processing line while the frozen cartons of meat are dispatched overseas.

Ozkor’s National Marketing manager, Alan Morgan, explains that the MP-1165 pallet not only fulfils a pallet’s traditional function, but the top deck tyne channels also makes unloading the pallet extremely easy, which means the process can be carried out in seconds and eliminates the need to manually unload cartons of meat from pallets, without the use of slip-sheets.

The MP-1165 plastic pallet is constructed with high impact resistant, food grade virgin co-polymer materials that can operate at low sub-zero freezer room temperatures. Additional measures are taken to enhance the pallets ability to mitigate potential forklift damage by incorporating high impact resistant nylon inserts in the side walls and vulnerable areas of the pallet. This proven and patented technology has been developed

by Ozkor’s design engineering team to extend the service life of the pallets, particularly in environments which are operationally extremely demanding.

Slip resistant rubber grommets are securely positioned on the pallet’s top deck to aid in the safe handling of frozen meat cartons when being transported around production facilities.

“Many thousands of the MP-1165 pallet model are currently being used and tested by major Australian meat processors and have made a significant contribution to processing efficiencies,” said Morgan. “Since the pallet’s introduction 3 years ago we are delighted with the results and response from this important market sector.” ■ For further information contact: Ozkor Pty Ltd; Ph:0296728588; email: info@plasticpallet.com.au; website: www.plasticpallet.com.au.

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MHD INDUSTRIAL PROPERTY

JUST IN CASE STRATEGY DRIVES BIGGER SHEDS

Industrial & Logistics (I&L) operations have had to flip the script in the past year, with retailers swapping out “just in time” supply chain principles for “just in case” inventory strategies and building their footprints. CBRE reveals more.

O

perations for online order fulfillment require three times the amount of space as a store fulfillment operation – this fact, coupled with the inventory factor, is driving strong real estate demand.

In its 2021 Australia Real Estate Market Outlook Report, CBRE Research explored how e-commerce was supercharging I&L enquiry levels – with an additional 350,000sqm of new space needed annually to keep pace with online sales activity in Australia.

CBRE’s Cameron Grier says that previously occupiers were warehousing just enough stock to meet market supply at the time, which required a smaller footprint. However, since the onset of COVID-19, suppliers have moved to secure larger footprints to accommodate for a new wave of supply chain modelling.

“We are already seeing the average occupier warehouse footprint increasing to account for a wideranging rethink of inventory strategy, after many groups were caught with not enough stock during the pandemic,” Cameron, Regional Director of CBRE Pacific’s I&L – Investor Leasing business, says.

Given approximately 40% of speculative developments were placed on hold last year, Western Sydney provides the perfect case study for how changing consumer behaviour and pumped up supply chain networks are feeding huge demand for warehousing space.

12 | MHD APRIL 2021

In the past three months, deals negotiated by CBRE’s Western Sydney team include 11,894sqm at a Dexus estate in Eastern Creek to Independent Living Specialists (ILS); 12,445sqm in Eastern Creek to Amber Tiles; 27,000sqm in Regents Park to Quatius Logistics; 10,000sqm in Arndell Park to Bell Solar and 6,047sqm in Eastern Creek to Alspec (both owned

by Goodman). The team also has over 100,000sqm in signed Heads of Agreement stage, which will be finalised imminently.

“I haven’t seen this level of leasing enquiry in nearly 20 years – almost every vacant building has two to three runners and intense demand for warehousing space, which has pushed core vacancy on the East Coast to 1.6 per cent and is expected to be sub-1 per cent in many key markets towards the end of the year,” Cameron says.

“With vacancy so tight, I would liken the speed and enquiry level of I&L transactions to that of a residential market, with campaign conditions almost matching those of auctions.”

Kate Bailey, head of I&L research for CBRE, said that based on upward trending sales forecasts, the sector would see heightened demand for quality, well-located warehouse space.

“Traditional warehousing will continue to be sought after, but we can also expect to see an influx of last mile hubs, repurposed retail facilities and parcel lockers, given learnings from recent supply chain bottlenecks and a

general maturing of the e-commerce trade in Australia,” Kate says.

On the back of continued e-commerce success, space requirements for reverse logistics supply chain is expected to add to this demand, with the practice requiring circa 20 per cent more space and labour capacity than when compared with forward logistics.

“The type of products being returned drive the real estate requirements and space criteria with secondary grade facilities being suitable for reverse logistics,” Katy says.

“Lower ceiling heights are more appropriate since the activities within the space are high touch with slower processing and the varying size of the pallet loads makes them difficult to stack or safely store in high racks,” she continues.

“Reverse logistics is creating opportunities for many Third Party (3PL) operators, which drive large volume of demand for industrial real estate.”

“A positive returns policy is a competitive differentiator for retailers to retain customers – so, getting the reverse logistics equation right is critically important.”

The report also highlighted that I&L sales comprised 38.3 per cent of all real estate transactions in 2020 – a record proportion of sales – with momentum expected to continue in 2021 as more groups seek to reweight their portfolios to capitalise on increasing occupier demand. ■

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MHD SUPPLY CHAIN

OPTIMISING CASH FLOW IN THE AGE OF UNCERTAINTY Esker Australia explores the current challenges faced by supply chain leaders and the increasingly important role that automation solutions are playing as the push for cash flow optimisation continues.

Automation solutions give supply chain leaders an added level of intelligence.

I

s cash still king? Under “normal” circumstances, optimising backoffice business activities such as paying bills, processing orders and collecting cash doesn’t always top an organisation’s priority list.

For many cash-compromised CFOs and COOs, their attention has rightfully turned toward minimising the supply chain disruptions that negatively affect working capital.

Traditionally, most supply chain leaders tend to focus a majority of their attention on turning inventory. However, today’s supply chain leaders are being asked to also focus their attention on minimising the money that’s tied up in inventory as well as the money held up in various parts of the business.

One weak link within processes such as Accounts Payable (AP), Order Management or Accounts Receivables (AR) could mean the difference between boom or bust. Esker Australia says that accounts payable, order management and accounts receivable are important priority areas. “That’s why it’s important to pursue a coordinated 14 | MHD APRIL 2021

approach that addresses all three areas and aims to alleviate the supply chain challenges associated with each in a manual, non-automated environment,” says Christophe DuMonet, Managing Director – Esker Australia.

If cashflow is the lifeblood of a business, it only makes sense that achieving optimal performance requires a high-functioning “circulatory system.” This is precisely what automation delivers, a 100 per cent cloud-based solution that spans the Cash Conversion Cycle and transforms the way customers and suppliers interact within your organisation. Connecting every part of the Procure 2 Pay (P2P) and Order 2 Cash (O2C) process creates a collaborative environment that delivers end-to-end efficiency.

No matter the complexity of the organisation, automation solutions give supply chain leaders an added level of intelligence over the people, processes and technology that constitute their day-to-day operations. Esker highlights coordination, performance, customisation, automation and management as the result of clean, centralised and customisable interface.

Companies of all sizes and industries use Esker solutions to optimise the various people, processes

and technologies that drive digital transformation and business performance.

“Cashflow can always be top of mind thanks to instant access. It is our knowledge in automation that breaks down the traditional P2P and O2C silos affecting supply chain efficiency through greater speed, accuracy, and information sharing and collaboration,” says Christophe. “When it comes to supply chains, processes like AP, AR and Order Management, they all have to work in concert to reach the only end goal that matters — getting customers the product they want, when they want it, as quickly, efficiently and costeffectively as possible.”

Built with industry-leading AI and RPA technology, Esker’s intuitive cloud platform allows businesses to power their digital transformation across procureto-pay (P2P) and order-to-cash (O2C) processes and unite customers and suppliers like never before. ■

Esker Australia’s knowledge in automation breaks down traditional Procure 2 Pay and Order 2 Cash silos.

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MHD WAREHOUSING

SAFEGUARDING YOUR WAREHOUSE As the use of warehouse automation continues to climb, John Moses, Director at The Construction Store, shares how new wave technology can help increase efficiency and cut error margins.

Wave joints are revolutionising the flexibility of racking solutions in warehouses.

E

fficiency has always been a fundamental component of warehouse operations – and with the rise of automation in these spaces, rates of efficiency have never been higher.

But as newer and more innovative forms of automation are introduced to warehouses, new complications have arisen that threaten the performance and efficiency of these new valuable assets.

In an era where efficiency is considered a benchmark for a well-functioning and high performing warehouse, solutions to these threats are highly sought after and imperative to implement for future success.

John Moses, Director at The Construction Store, has been providing an innovative solution to combatting automation error margins through the use of wave joints during construction.

The joints are designed to have three waves – and are shaped like one – which are now being more commonly used in comparison to traditional straight edge armour joints.

By using wave joints, it’s impossible to hit a straight edge and machinery and robots will always travel smoothly over the surface – no matter what direction they’re heading from. The result is the obliteration of errors resulting from a dip in the floor or a hitch on a sharp

16 | MHD APRIL 2021

edge which could cause laser guided machines to go off track.

John, who’s company is the leading provider for wave type joints in Australia and representative of Permaban Armoured Joint Systems, says demand for the unique joints is on the rise after the huge call for new warehouse space due to the e-commerce boom.

The Construction Store has provided Permaban Wave joints for several projects over the past 18 months such as Linfox’s Multi-use Logistics Centre in Brisbane and more recently, a major manufacturing solutions providers’ new 35,000m2 Melbourne warehouse, which Vaughan Construction is set to complete soon.

“I think the demand will continue for a while yet – this pandemic has brought forward plans five to 10 years earlier than anticipated,” he says.

“We are getting a lot of inquiries about this wave joint but the impact for us and where we are going to see the benefits won’t be for another 12 to 18 months when those warehouses finish construction.”

Wave joints are also revolutionising the flexibility of racking solutions in warehouses. The current common procedure for joints is to hide them underneath racking wherever possible –

but in a few years’ time, when a tenant needs more racking space, simply wants to move it, or wants to change the angle, they are unable to due to the position of the joint.

“With a wave joint you can travel over it in any direction and it’s no impact, so you can change the racking to wherever you want in the future,” John says. “It’s future proofing your warehouse.”

For existing warehouses that want to implement the wave joint technology, The Construction Store also supplies another solution called the Signature Aris Repair, which is able to replace existing joint systems by removing a section and installing a new composite system that results in a hexagonal shape. This gives the same effect as a wave joint in existing builds.

John says the increase in automation we’re seeing will only continue to rise and expected most warehouses to implement wave joints in the future.

“It will be driven by material handling equipment providers as they’re guaranteeing their equipment will increase efficiency, and that certain machines will do certain tasks – but you need the wave joints for everything to run smoothly,” he says.

“While we are making it known we aren’t necessarily needing to push it because the builders are saying we have no choice, we simply need this type of joint.”

He thinks future warehouses will see more automated guided vehicles, because they are so efficient:“We recently supplied wave joints to a warehouse which has almost no racking – it’s all large and heavy loads being driven around in a big open floor, there’s no hiding joints under racking. It just seems logistics is becoming more and more important rather than manufacturing.” ■

MHD COVER STORY Romain Bernard, Schneider Electric’s Sydney Distribution Centre Manager (left) and Neil Nand, Corporate Account Manager at Toyota Material Handling (right) share a philosophy of continual improvement.

A GLOBAL SHOWPIECE OF SAFETY AND SUSTAINABILITY Schneider Electric has partnered with forklift retailer Toyota Material Handling Australia (TMHA) for more than 15 years. In a world-first for Schneider Electric, the global specialist in energy management and automation has deployed Toyota’s Lithium Ion forklifts at its distribution centre in Ingleburn, NSW. MHD finds out more.

S

chneider Electric’s distribution centre (DC) in Ingleburn, in Sydney’s west is a global showpiece of safety and sustainability.

“We are committed to sustainability at every level of our organisation.

We are committed to becoming carbon neutral by 2025 and to net zero operational emissions 18 | MHD APRIL 2021

by 2030, and a net-zero supply chain by 2050,” Romain Bernard, Sydney Distribution Centre Manager at Schneider Electric tells MHD. As the material handling industry continues to evolve and look for innovative solutions with regards to safety and efficiency, the world’s leading forklift manufacturer Toyota is committed to staying ahead of

the curve with regards to delivering innovative power technology to fitfor-purpose applications such as Schneider Electric’s operation at Ingleburn.

Schneider Electric, the global energy management and automation specialist, has committed to sustainable practices and the UN sustainable development goals

MHD COVER STORY for more than 15 years. The company has been recognised for its commitment to sustainability and was honoured in January this year as the world’s most sustainable corporation by Corporate Knights as well as ranked fourth in The Gartner Supply Chain Top 25 in 2020.

The Ingleburn DC features a number of sustainability initiatives including rooftop solar and site energy reduction initiatives, all enabled by Schneider’s technology. As part of the overall strategy of safety, sustainability and continuous improvement, Schneider Electric has upgraded its forklift fleet to Toyota’s Lithium Ion forklifts.

“From 2012, we have been working with Schneider to explore low maintenance battery options, and we’ve progressed to this point of being able to now offer Lithium Ion power solutions,” Neil Nand, Corporate Account Manager at TMHA says.

Schneider Electric and TMHA share a philosophy and commitment to continuous improvement.

“Toyota’s value of ‘Kaizen’, the Japanese word for continuous improvement, also resonates with Schneider Electric. They never rest on their

“

We are committed to sustainability at every level of our organisation.

We are committed to becoming carbon neutral by 2025 and to net zero operational emissions by 2030, and a net-zero supply chain by 2050.

”

laurels and are always looking for ways to improve safety and the environment for their employees and the industry at large,” Neil says.

THE POWER OF LITHIUM ION Neil has worked as the TMHA Corporate Account Manager for Schneider Electric for more than 15 years and says as an organisation they are always looking ahead with regards to the latest innovations around technology and safety.

A driving force behind Schneider Electric’s desire to explore Lithium Ion forklifts was the requirement to reduce operator maintenance with regard to batteries.

As part of a benchmarking exercise, Romain says that Schneider Electric realised that along with a desire to avoid lead acid batteries, they found that the lead acid forklifts were not running as efficiently as they hoped.

“We wanted to have equipment that was much more efficient in terms of energy, but also to find technology that featured continuous improvement and helped us in our commitment to building a green DC,” Romain says.

When using a three-phase charger the Lithium Ion power solutions are fully charged in just 60 minutes.

MHD APRIL 2021 | 19

MHD COVER STORY

Toyota worked closely with Schneider Electric to modify the forklifts to include cameras and safety lights.

The forklifts feature a very stable voltage, resulting in maximum performance for the whole discharge cycle.

A further benefit is that they are fast charging. When using a three-phase charger a full charge will only take 60 minutes. There is also no need for topping up water.

Schneider Electric has deployed 23 Lithium Ion reach forklifts at Ingleburn, along with a fleet of counter-balance units.

The forklifts will primarily be used to service 10.5-metre high racking, storing and receiving pallets.

Working at such heights requires an enhanced commitment to safety and Schneider and Toyota worked together on further safety features for the forklifts.

“TMHA worked closely with Schneider Electric to modify the forklifts to include cameras and safety lights as a warning for pedestrians around the forklifts. We have also ensured that the fleet management system included safety features,” Neil says.

“When we are picking at 10.5metres high, safety is our number one priority and these forklifts give us the peace of mind in knowing that our operators and employees are safe,” Romain says.

20 | MHD APRIL 2021

A WORLD-FIRST The deployment of Toyota’s Lithium Ion forklifts is a worldfirst for Schneider Electric and the Ingleburn DC will operate as a test case for the rest of Australia and worldwide.

The Ingleburn DC is a showcase of safety and sustainability and the facility has already delivered some impressive efficiency and sustainability results.

“Our energy efficiency targets are bold but achievable. We want

The forklifts will primarily be used to service 10.5-metre high racking, storing and receiving pallets.

MHD COVER STORY

The Toyota Lithium Ion forklift fleet is a key initiative to reach a goal of 90 per cent renewable energy in 2021.

to improve energy efficiency by 3.3 per cent year-on-year. We want to save 18 tonnes of CO2 from energy efficient projects and reach a goal of 90 per cent renewable energy in 2021,” Romain says.

The new Toyota Lithium Ion forklift fleet is a key initiative to supporting sustainability and energy management initiatives.

“This translates to approximately 50,000kWh of energy use will be saved every year, which we estimate as 37 tonnes of CO2,” Romain says.

There is also no need for topping up water, and zero requirement for battery maintenance. They also feature a longer lifetime.

Schneider Electric will also meter the forklift charging stations to determine further opportunities to improve on these sustainability and energy savings.

“The metering allows us to easily identify any anomalies of energy usage, analyse usage compared to expected savings from initiatives, and

“

When we are picking at 10.5-metre high, safety is our number one priority and these forklifts give us the peace of mind in knowing that our operators and employees are safe.

”

work out how we can even further improve our sustainability outcomes,” Romain explains.

CONTINUOUS IMPROVEMENT With Kaizen, or continuous improvement, a major focus for both organisations, this is just the beginning for Schneider Electric and Toyota Material Handling.

“This is a big step for us, and we’re proud to be one of the first organisations in Australia to explore this innovative technology at our distribution centre,” Romain says.

“But we will continue to work with Toyota to explore more ways we can improve safety, sustainability and energy efficiency.” ■ For more information on Toyota’s lithium-ion forklifts freecall Toyota Material Handling Australia on 1800 425 438 or visit their web site on www.toyotamaterialhandling.com.au MHD APRIL 2021 | 21

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MHD INDUSTRIAL PROPERTY

LOGISTICS INFRASTRUCTURE: THE NEW ASSET CLASS MHD sits down with Andrew Maher, Director of Property at TMX to discuss the major changes in the industrial property sector. Andrew discusses the economics of last-mile delivery, the rise of the multi-level warehouse and the importance of a changing mindset in planning and regulation.

F

or Andrew Maher, Director of Property at TMX (formerly TM Insight and XAct Solutions), the world of industrial property has been completely transformed by the record levels of e-commerce penetration seen since COVID-19 dramatically changed people’s shopping habits.

“I think this sector has changed so much that I’ve made a conscious effort to move away from using the term industrial property and now refer to it as logistics infrastructure,” Andrew tells MHD. With COVID-19 causing a complete overhaul of the global supply chain, Andrew says that many global supply chains failed as a result of the early onset of the pandemic.

At the macro level, organisations

had to be more tactical. “Short term leases, extra space and extra footprint.

We saw many organisations have to be nimble to get ahead of record demand,” Andrew says.

The huge change in consumer behaviour, which saw multi-generational shoppers forced to make purchases online for the first time, has had a significant impact on the requirements and location of industrial property.

“Historically industrial property networks were anchored by large distribution centres (DCs) and were always being used to service a known store network. When that store network changed, every ten years or so, organisations would reassess the location of their distribution centre and move accordingly,” Andrew says.

Andrew Maher, Director of Property at TMX

Andrew expects to see a huge update of Autonomous Mobile Robots (AMRs) in Australia.

MHD APRIL 2021 | 23

MHD INDUSTRIAL PROPERTY As e-commerce has continued to grow over the past few years, and in particular throughout 2020 as COVID-19 forced many reluctant shoppers online, the function of the warehouse has fundamentally changed, and this traditional model is no longer fit for purpose.

“The traditional B2B model of a distribution network has been turned upside down with online fulfilment.

A B2C warehouse needs to receive an order, pick a product and dispatch it to someone’s home, which is an unknown location,” Andrew explains.

This creates a huge amount of complexity and uncertainty and has caused retailers to ask questions around how much inventory they should hold, when they will sell it and where its end location will be.

“Orders aren’t going to shopping centres anymore, but to people’s front doors and this has created a huge amount of complications for retailers,” Andrew says.

Furthermore, this is coupled with rising consumer expectations. “People want to click, put their credit card details in, and receive their purchase the next day,” Andrew says.

CLOSER TO THE CENTRE OF GRAVITY In order to solve this growing complexity, the role of the distribution centre must change. “The only way to achieve the level of service expected, is to carry inventory at central locations near the end-consumer,” Andrew says.

However, inner-city suburbs are not where industrial precincts are currently based. “We’re in this strange situation where suburbs that were once industrial, have been gentrified to residential, and now there is a need to provide logistics services in these areas.”

With this shift, comes a need for zoning regulations to be reconsidered and councils to consider the need for warehouse and fulfilment operations closer to the populations they now serve.

“Organisations will need to lease smaller warehouses in inner-city locations where they can pick, pack and dispatch quickly,” Andrew says.

This is where the grocery retailers have the edge on prompt online delivery. These retailers can achieve fast delivery times because they have stores close to major populations. If they sell 24 | MHD APRIL 2021

There is an irony that suburbs that were once industrial have been gentrified to residential, but with online shopping they now need more warehouses nearby. more online, they can change their store footprint to accommodate the dispatch.

Andrew thinks there is an opportunity for the creation of e-commerce hubs in capital cities that primarily service the end-consumer, something which is more common in parts of Asia.

Andrew references some recent developments in this space in Australia, with Workit – combined logistics, showroom and office space organisation – recently leasing a 9,000 sqm hub in Alexandria, Sydney. The hub consists of offices, showrooms and warehousing spaces as well as shared loading docks and shipping stations.

“There are very few organisations who can afford to do their own e-commerce and invest in their own distribution centres, so we will see more of these kinds of hubs that are essentially shared office spaces but for e-commerce here in Australia,” Andrew says.

THE MULTI-STOREY OPPORTUNITY According to Andrew, the B2C fulfilment sector is still very much in its infancy in Australia. “Organisations are very comfortable with their B2B network, but we still don’t have the infrastructure to support B2C fulfilment in Australia.”

In many countries in Asia, the logistics infrastructure is much more advanced and capable of meeting increasing consumer expectations around prompt delivery. One strategy used extensively in Asia is the multistorey warehouse, and Andrew says this concept is coming to Australia.

“Restrictions around height and floor space ratio need to change in order

for us to be able to meet the increased demand. E-commerce isn’t slowing down in Australia, so we need to consider going vertical and increasing floor space ratios,” Andrew says.

In Hong Kong, Shanghai and Tokyo, the multi-storey warehouse is commonplace. “We are working with a client in Hong Kong on a 18-storey manufacturing facility. The tallest warehouse in Hong Kong is 27 storeys high,” Andrew says.

Andrew recognises the complexity of comparing densely populated cities such as Hong Kong, Shanghai and Tokyo to Melbourne and Sydney’s mere 5 million people, but he points out that the service expectations remain the same.

“We still have the service requirements and service aspirations for fast and convenient delivery options here in Australia, but the economics of the lastmile still have a long way to go before it will work here,” he says.

Andrew also sees an opportunity for flexible automation to play a critical role in retailers using the space to meet the rising demands of their consumers.

“I think there will be a huge update of Autonomous Mobile Robots (AMRs) in Australia, and this is the kind of automation we will see the greatest benefit from,” he says.

“I really think we’re on the cusp of something significant, but it will take a number of stakeholders to get it right. E-commerce is here to stay and it’s not slowing down. Predominately it’s a change of mindset in planning but it’s about how industrial landlords and service providers respond to this changing landscape as well.” ■

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MHD SUPPLY CHAIN

NOW RECRUITING: STANDING OUT OF THE CROWD IN A SEA OF TALENT With expats returning from overseas in huge waves over the past 18 months, landing a leadership position in the local supply chain is highly competitive.

Tony Richter, Founder of Bastian Consulting, explains the top three skills you need to know for 2021 and beyond.

‘H

ome for the holidays’ is a phrase many people relate to when it comes to important reasons for families and professionals to return home. But how about ‘home from the pandemic’? Although it doesn’t have the same merry ole jingle to it, this is an increasing cause to the flock of expats returning to Australian shores. This is having an effect on the supply chain in more ways than one. With a pool of extremely talented executives battling it out for leadership positions in Australia, how do you make yourself stand out from the rest?

Tony Richter, Founder of Bastian Consulting, an Asia Pacific supply chain recruitment agency, says COVID-19 has driven more organisations to prioritise resilience and explore different ways of working such as onshoring. However, this comes with its own unique challenges.

Finding the right person to join an organisation is often a lengthy process in the supply chain space. “The pandemic has really highlighted top employability skills that companies are seeking. These can be narrowed down to three important skills that are needed for this year and beyond,” Tony says.

TOP THREE SKILLS YOU NEED FOR 2021 So, what are these three skills that will increase not only your chances of being an attractive candidate, but will allow you to further establish supply chain resilience? Tony says that in 2021, it’s

important you can showcase design and data skills but also a thorough understanding of e-commerce. The average skills aren’t enough this year, it’s about leveraging unique talent and combining practised employability skills.

In terms of the “new basics” including design, data and e-commerce knowledge, Tony says these can be combined with leadership and management style to showcase further potential. Design, whether that be through business processes, network structures and physical infrastructure, visibility or operational structure, Tony says it’s vital to showcase an understanding of design efficiency and creatively present what’s working and how to manage solutions in a different way.

It’s no secret that data is the fundamental core in this era of digitalisation. However in the supply chain, Tony says the magnifying glass is on the decision making from the interpretation of data analytics. “Making an appropriate decision from data isn’t easy. But to demonstrate that skill shows how your organisation can transform the way they define and manage their supply chains.”

Online shopping is off to a strong start in 2021. According to a February e-commerce report update, Australia Post reported that national online purchases in January 2021 grew 44 per cent year-on-year (YOY). Australia’s household online participation remained high in January, with over 5.2 million

Tony Richter, Founder of Bastian Consulting, an Asia Pacific supply chain recruitment agency, says COVID-19 has driven more organisations to prioritise resilience and explore different ways of working. households making an online purchase.

Strong ongoing consumer engagement with online shopping indicates that customers continue to turn to e-commerce more readily for their day-to-day shopping needs. This also means that there is a rising demand for e-commerce skills across the board — from retail chains looking to improve their online experiences to enterpriselevel companies and start-ups looking to increase revenue. To boost their competitiveness in an increasingly digital marketplace, companies require skills from knowing the latest in successful fulfilment, last mile and automation requirements to enhance an e-commerce operation.

“The pandemic shined a light on MHD APRIL 2021 | 27

MHD SUPPLY CHAIN HOW TO BE THE PERFECT FIT

Bastian Consulting assessed the impacts of the COVID-19 crisis on Australian supply chains. supply chains and exposed what was working and what wasn’t. Many businesses have had rapid growth and have struggled to keep up with the growth trajectory, which is why these specific three skills are more employable than ever before,” Tony says.

THEY STILL CALL AUSTRALIA HOME Thousands of Australians have returned from key overseas locations in advanced supply chain regions over the past 18 months. Tony says that is creating a highly competitive market.

At the time of print, the Australian government was working on a plan to create a travel bubble with Singapore. Singapore’s prime minister said he hoped the country could start reopening its borders more widely as vaccination programmes advance.

Australia’s deputy prime minister, Michael McCormack, confirmed the government was working on the plan.

But will it keep Australian supply chain leaders in overseas markets, or will they continue to come home?

Globally, there has been a reduction in expats. Tony says in Middle Eastern and Asian locations there has historically been a need for experienced supply chain expats. However, with policies put in place to provide more leadership opportunities for locals, reductions in salary and remuneration, many families are flooding back to Australia, which is creating competition at the senior level of supply chain management.

“Many executives relocate to Asia to broaden their experience 28 | MHD APRIL 2021

“

The pandemic shined a light on supply chains and exposed what was working and what wasn’t. Many businesses have had rapid growth and have struggled to keep up with the growth trajectory, which is why these specific three skills are more employable than ever before.

”

and capabilities. Singapore is the key hub for Asia Pacific’s supply chain, but when companies have cut salaries and shifted priorities to hiring locals, it’s forcing families to reconsider their options, having their kids in private international schools and a high cost of living, instead they have moved back to Australia” Tony says.

At the executive leadership level, this is creating fierce competition as roles are being highly sought after from expats returning home. “In Singapore there is a push to hire locals which is restricting expats, not to mention government tax subsidies on offer for hiring locals that is forcing this movement for supply chain professionals to seek roles on home soil,” Tony says.

More than ever, supply chain organisations employers are prioritising diversity and inclusion initiatives and investing resources into making sure their talent reflects their company’s values.

Workplace diversity leads to innovation. “It’s exciting to see more companies prioritise senior females and culturally diverse candidates to join supply chain organisations in executive positions. It’s well overdue and allows companies to reflect on their values and culture for 2021 and beyond. Every company has a unique set of goals, and your diversity practices must align with them to be successful,” Tony says.

He says it’s refreshing to see more women in leading roles, however there is more work to be done this year to rebalance the ongoing power structure.

“There has never been more talent available. Companies are going through extended recruitment processes to ensure their perfect candidate ticks every single box. They want the person to be a 100 per cent fit for their company, role and culture.”

So how do you become the perfect fit? Tony says it depends on the company, but as Australia is a global destination market, candidates from overseas and locals are battling it out to prove their worth.

In a recent report by Bastian Consulting that assessed the impacts of COVID-19 on supply chains across key Asia Pacific locations, 24 per cent of supply chain executives in Australia said the demand for their products or services decreased during the pandemic. This highlights the thirst for problem solvers that can offer unique skills from either local or international experience to help manage the ongoing ‘ripple effects’ across the entire supply chain.

“A decade ago many companies were open to transferable skills, but now it’s about specific skills that can help a certain channel of an organisation,” Tony says. For Australia’s growing opportunities in local manufacturing, tech and start-ups, for example, it’s crucial to stay ahead by constantly developing technical, management and e-commerce skills to help strengthen the local supply chain and contribute to the future of the economy. ■

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MHD MATERIALS HANDLING

MANAGING POWER DEMANDS IN THE WAREHOUSE Jacques Smit, Director Sales Motive Power ANZ at EnerSys Australia, shares the importance of advanced technology that is more than simply building batteries and energy systems. and services through intelligent and flexible power systems the outcome is realised.

HIGHER AND NARROWER

Jacques Smit, Director Sales Motive Power ANZ.

Higher and narrower are terms that are all too familiar for forklift operators. But delving deeper into the requirements of Australia’s demanding warehouse environment, operators need equipment that meet the ever changing landscape as operations inside the warehouse continue to scale with the business.

Warehouses are rapidly expanding not just in size, but also in height— leading to new design innovations that are helping material

W

hat is the key to being a global leader for stored energy solutions and systems? Jacques Smit, Director Sales Motive Power ANZ at EnerSys Australia, says it’s about recognising advanced technology as powering the future, not just forklifts.

EnerSys first began manufacturing batteries for industrial use over 100 years ago. EnerSys has grown to become a multibillion-dollar global industrial technology enterprise, delivering energy storage systems and solutions to customers across a wide range of industries and applications.

When leading through innovation and pioneering the future of power there are always high expectations.

Jacques says the success stems from working hand in hand with the customer and understanding their operations completely, and only then offering high levels of products

handling equipment to keep up with demands. As we go higher, the demand for power does too.

In recent years, warehousing has experienced a steady increase in operating and real estate costs, inventory volume, and the number of Stock Keeping Units (SKUs) processed.

In addition to space, warehouse operations are also facing increasing demands for a faster turnaround to meet customer expectations and to keep space available for new stock, meaning continuous operation of forklifts and equipment to fulfil orders around the clock.

Jacques says that to remain competitive as e-commerce becomes a more widespread means of distributing goods, a more extensive use of existing warehouse space has become necessary.

Innovations in Li-ion technology, such as that used in NexSys iON batteries, include the use of a Nickel Manganese Cobalt (NMC) chemistry that enables faster charging and greater recyclability.

MHD APRIL 2021 | 31

MHD MATERIALS HANDLING

Recent innovations in NexSys TPPL technology, such as that used in NexSys PURE batteries, include the incorporation of a carbon additive into the battery’s chemistry, which increases the cycle life and the amount of energy produced.

“To optimise the available space, warehouse storage systems are being designed to store product higher and with height comes demand for power, and this is where the NexSys range has you covered,” he says.

POWERING ADVANCED TECHNOLOGY IN AUSTRALIA EnerSys has successfully developed and delivered technologies to help advance the Australian and New Zealand materials handling industries, specifically to the DC power sector. Not only is the technology optimised, but it’s also a game-changer for meeting a sustainability strategy.

Looking at the technology itself, NexSys PURE batteries have taken forklift batteries into the next generation by adding an advanced carbon additive to its proprietary Thin Plate Pure Lead (TPPL) technology for increased cycle life and higher energy throughput.

NexSys TPPL batteries typically cost less as an initial investment compared to Li-ion batteries and provide sufficient performance for light to medium-duty equipment, while the higher energy density of Li-ion batteries provides the performance needed for the heavierduty equipment.

Jacques says with faster and more flexible recharging, NexSys PURE TPPL batteries provide greater flexibility in deploying equipment through increased run time and reduced dependence on 32 | MHD APRIL 2021

having to be fully recharged. “NexSys TPPL batteries, along with hybrid approaches that take advantage of both chemistries, may provide operators with cost-saving options to remain competitive in a changing market.”

He reflects on the reaction of the customer that is most satisfying.

“It all comes down to tailoring the offer to achieve a sustainable power outcome that requires certain features.

EnerSys uses our state-of-the-art power selection software to provide the user with a sustainability report for outcome,” Jacques says. He adds that customers that engage with the NexSys range of advanced technologies are amazed by how effortless they can run their operation and achieve throughput instead of focusing on battery related tasks. “Not only are they achieving savings in TCO (Total Cost of Ownership) but improved efficiencies through using NexSys technology.”

KEEPING UP WITH DEMAND “Nothing moves without power,” Jacques says. In the world of fastpaced logistics, the consistent supply of power is key to any operation to ensure optimised, yet consistent and sustainable power.

“Having the right technology in place tailored to suit your operation will ultimately support your growth.

The wrong selection can be a costly and inefficient mistake,” he says.

There is rising concern about the end-of-life of new technologies that are approaching the materials handling market. “NexSys PURE batteries are 99 per cent recyclable. This product delivers equivalent features through alternative chemistry to lithium which allows it to be a sustainable powerhouse for the market,” Jacques says.

“In the modern-day operation, it is our experience that power should be ready all the time to react to demand,” Jacques says. He highlights that NexSys technology is responsive to this demand and highly recyclable, supporting sustainability efforts and reducing emissions and gasses. “We are proud to boast a 99 per cent recycling figure in our TPPL range and it can be handled locally by EnerSys to take care of disposal.” EnerSys also manages a cradle to grave process that provides the customer with a disposal certificate ensuring compliant disposal of batteries.

In keeping with global leadership, EnerSys has locations in all major cities in Australia to offer a National Service footprint. “Our major facilities in Melbourne have full manufacturing capabilities from large industrial telecommunications shelter systems to the battery tray we build a forklift battery into,” Jacques says. The EnerSys team employees qualified AC electricians as well as DC Technicians in all states to support the full power service required. ■

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MHD SUPPLY CHAIN

SUPPLY CHAIN MAKES THE DIFFERENCE

After consolidating its manufacturing operation into one site, Oceania Glass found itself dealing with the challenge of running an efficient supply chain while maintaining a leading customer service experience. It seized the challenge, with the support of Prological’s expertise.

O

ceania Glass traces its heritage back to selling its very first glass in 1856. Since then, its performance glass has become a key architectural signature to many of Australia’s landmark buildings and has brought the joy of natural light to countless Australian family homes. An Australian icon, the business was formally the glass manufacturing arm of Viridian and continues to make glass locally as the only architectural flat glass producer in the country.

With an extensive supply chain network across Australia and New Zealand, Oceania Glass services the entire country from its manufacturing base in Dandenong, Victoria.

Prior to 2013, Oceania Glass was manufacturing glass at two sites in Australia, one in Melbourne and one in Sydney. After the global financial crisis, when construction activity started to decline, the business made the decision to consolidate its manufacturing processes into one super site.

The consequences of this was managing the much larger freight distances to

Justin McKenzie, National Logistics Operations Manager at Oceania Glass. service the whole Australian market from one manufacturing plant, while maintaining the high level of customer service the business is renowned for.

REMAINING COMPETITIVE Transporting glass is a challenging endeavour for obvious reasons, it’s extremely fragile and breaks easily.

Peter Jones, Managing Director and Founder of consultancy Prological.

Oceania Glass was using float liners to transport glass large distances across the country. Float liners are a rapid glass transport system that improves the safety and efficiency of glass delivery, but they are not designed for long distances.

“Upon its introduction in Australia the float liner was a recipient of an

Prological helped Oceania Glass in its freight strategy, including preparing for its tender process.

MHD APRIL 2021 | 35

MHD SUPPLY CHAIN

Oceania and its freight partner Toll created custom trailers for glass transportation.

Australian Freight Industry Award for Innovation & Technology. It is essentially a specialised single trailer designed for glass that can take a payload of 20 tonnes. They are designed for quick turnaround delivery to customers, not long-haul,” says Corné Kritzinger, CEO at Oceania Glass.

A major issue with using the float liner for long haul, is that it creates deadrunning kms. “Transport companies can’t use these specialised trucks for any other kinds of freight. So, we’re sending them all the way from Melbourne to Brisbane and we were having to pay both legs,” Justin McKenzie, National Logistics Operations Manager at Oceania Glass says.

CALLING ON THE EXPERTS Moving glass around Australia has its unique challenges. “A lot of people ask: why don’t you just put it on a train?

But we know that if we try and use rail freight, we have a lot of issues around breakages and damage. So, we knew we needed to explore a different way of transporting the glass to Sydney and Brisbane,” Corné says.

Justin had worked with Peter Jones, Managing Director and Founder of supply chain consultancy Prological on a previous project for Oceania Glass regarding Warehouse Management Systems (WMS) and voice picking technology.

“I knew that Peter was very well experienced in the world of freight and 36 | MHD APRIL 2021

supply chain, so we re-connected with him to explore new ways of managing our supply chain,” Justin says.

After analysing the operation, Peter and the team at Prological developed a solution that solved the issue of dead-running kms.

Peter, in conjunction with the Oceania Glass team, recommended exploring an A-double trailer for the line haul journey. This also required the establishment of a distribution centre (DC) in Brisbane to off load and store product and service the last mile.

“By establishing a DC in Brisbane and changing to an A-double freight model, we could improve our freight efficiency, redirect the float liners for use on local customer deliveries and also reduce our lead times,” Corné says.

After establishing the DC in Brisbane, Oceania’s freight contract was up for renewal. It was time for the business to go to tender for a new freight partner, which would require a well-documented system of work.

“Peter helped us make sure we got all the data right and all the associated operating methodologies bedded down so when we went out to tender for the new contract, we could engage and enable potential providers to accurately quote and cover our operational requirements,” Justin says.

The A-doubles have been developed in partnership with Oceania Glass’ freight partner, Toll

and will be fully operational by the end of April. The trucks have been custom designed for Oceania Glass’ transport needs and will be used for transporting glass into Queensland and New South Wales.

AN OPPORTUNITY FOR AUSTRALIAN MADE For Corné, innovation around freight and supply chain is really important in Australia. “Most businesses who have a national footprint know that supply chain has such a big impact on the business efficiency and customer satisfaction, so driving innovation is key” Corné says.

“Australian supply chains are full of these sorts of opportunities; however, they will rarely be visible from the inside and most transport companies can’t do the work to develop them because they no longer have the margins to recoup the development costs, and rapidly losing the knowledge and skills base,” Peter says.

Prological has extensive experience in this approach of redesigning the task and engineering solutions. Peter and his team pride themselves on creating the “unfair advantage” for their clients.

“To develop the unfair advantage is to come up with something that makes the opposition irrelevant. It occurs by interpreting the rules to your advantage through application not previously thought of,” Peter explains. ■

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MHD INDUSTRIAL PROPERTY

THE HEARTLAND OF LOGISTICS South Australian Produce Market is one of the oldest companies in South Australia and offers one of the most well-connected locations in Adelaide. A rare opportunity to occupy a 7,600 sqm cold storage facility has become available adjacent to the market occupying some 27,000 sqm of land. MHD finds out more.

T

he iconic South Australian Produce Market dates back to the 1880s and is one of the oldest companies operating in South Australia. Boasting intermodal links to all major roads and direct access to regional and interstate road networks to metropolitan Adelaide, the location of the market has served food producers for more than 200 years.

A rare opportunity for a cold chain producer or logistics provider specialising in cold chain to base themselves in this centrally located

site which will become available from September this year.

With increased demand for industrial property and in particular from grocery retailers and pharmaceutical suppliers leading to record low vacancy rates in cold storage facilities, facilities such as this one at 51-53 Diagonal Road, Pooraka, South Australia are hard to come by.

“This site provides a future occupier with the opportunity to service Adelaide easily. In terms of the specifics of the building, it’s very rare to find a building

of this size available in the market and also even more rare that it is a cold storage facility,” Paul Tierney, National Director – Industrial at Colliers says.

The 7,600 sqm facility was constructed to an exceptional standard.

Featuring a standalone modern office accommodation as well as additional two-storey offices inside the warehouse, the warehouse features a mix of ambient warehousing, cold storage and freezer accommodation with outstanding loading and unloading areas.

The 7,600 sqm facility features a standalone modern office accommodation, as well as additional two-storey offices inside the warehouse.

MHD APRIL 2021 | 39

MHD INDUSTRIAL PROPERTY

The warehouse features a mix of ambient warehousing, cold storage and freezer accommodation with outstanding loading and unloading areas.

The head office also provides modern accommodation with a mix of open and individual offices, a boardroom, amenities, kitchen and dedicated sleeping quarters for drivers.

Featuring nine recessed docks, all with new dock levellers, one finger dock with a dock leveller and five at grade loading doors, the facility is fully functional.

“The site also benefits from the opportunity to expand the building by a further 2,000 sqm providing occupiers with future-proofing and growth opportunities,” Steve Smith, Partner at Leedwell says.

Angelo Demasi, CEO at South Australian Produce Market and his team pride themselves on being flexible and supporting the growth of their tenants in the area. “We have more than 300 tenants on site, including more than 50 produce wholesalers, 40 produce growers and a mix of several retailers that lease stands in the market area,” Angelo says.

The site provides direct access to the market, for those wishing to trade there.

“If anyone in the logistics or produce game is looking to establish themselves or expand in South Australia, then this is the facility for them,” Angelo says.

South Australian Produce Market benefits from amenities and community for the local workforce. “There’s not too many places in Adelaide you can get a cup of cappuccino and breakfast at 2am in the morning,” Angelo says.

The location also provides the 40 | MHD APRIL 2021

opportunity for the occupier to connect with South Australia’s largest pool of food producers.

Furthermore, the South Australian Produce Market is a showcase in sustainable practices. Having been the only market in Australia to meet the Paris Accord, by meeting the 30 per cent emission reduction in 2020, the market is dedicated to ensuring that sustainability is at the forefront of its portfolio.

As one of the first sites to manage power through an autonomous micro grid, Angelo and the team at South Australian Produce Market intend to continue to add value to the area by enhancing the sustainability features.

“We have the ability to engage with industry leading technology to further enhance the sustainability of our site and to ensure that these benefits roll on to the

ALDI, Woolworths and Metcash have all built new or expanded their distribution centres in the area because of its ideal location.

tenants we have here,” Angelo says.

The site also provides a premier location for servicing the final mile.

“With regards to internet trading, the last mile is always the most expensive part. Due to its central location, the South Australian Produce Market provides a first-rate opportunity to deliver to metro Adelaide,” Angelo says.

Paul & Steve reiterate this, and talks of the recent commitments and expansions in the area by Australia’s largest grocery retailers. ALDI, Woolworths and Metcash have all built new or expanded their distribution centres in the area because of its location, and proximity to major road infrastructure, they both say.

To find out more about the opportunity, contact: Steve Smith Partner – Leedwell or Paul Tierney National Director – Colliers International. ■

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MHD MATERIALS HANDLING

FUTURE-PROOF THE SUPPLY CHAIN Following significant growth in its product range, Lion initiated a re-structure of its supply chain and internal fulfilment operations. MHD finds out more.

L

ion is one of Australasia’s largest beverage companies, employing over 4,000 people across Australia and New Zealand.

Lion markets premium brands in the beer, cider, fine wine, spirits and both alcoholic and non-alcoholic readyto-drink beverages. With this diverse portfolio, Lion collectively generates a revenue of around AUD$3.958 billion each year.

With a total of 15 key beer brands featuring Tooheys, XXXX, Hahn, and James Squire, the diversification of the category led Lion to initiate a new program to improve production efficiency and streamline operations at its largest facility, the Tooheys Brewery in Lidcombe, New South Wales.

The Tooheys Brewery operates 24 hours a day, seven days a week, and brews up to 300 million litres of beer per year and produces up to 120,000 cartons of product per day, which is equivalent to 2 million litres per day.

AN AUTOMATED, FUTUREPROOF SUPPLY CHAIN With the market dynamics pushing the beverages supply chain into a 24/7 cycle, it was clear that Lion’s previous legacy systems were outdated and in need of upgrading. Lion’s overarching goal was to make upgrades that would help the company meet the needs of its consumers while also looking after its own employees by providing a safe and well-managed workplace.

As part of the upgrade project, the decision was made to implement Automated Guided Vehicles (AGVs) from Dematic, an intralogistics innovator that designs, builds and supports intelligent, automated solutions for retail, manufacturing and distribution operations.

Tim Symons, Packaging Manager at Tooheys, said the implementation of 42 | MHD APRIL 2021

AGVs was part of a widespread initiative to streamline operations within the Tooheys Brewery and across the entire business.

“We needed a definitive way to improve our productivity to keep up with demand, while also remaining cost-effective and competitive within the market,” said Tim. “To achieve this, we invested in AGV technology as a way to better deliver services to our core assets – our people, brands, production facilities and suppliers - and to generate better value for our customers.”

A SOLUTION TO AUTOMATE AND STREAMLINE Lion selected Dematic as its automation partner due to its track record of successfully implementing automated solutions to manufacturing and distribution operations, as well as its global expertise in supply chain optimisation.

The Dematic AGVs were selected as the ideal solution to be deployed at Lion’s Tooheys Brewery in Lidcombe because they were capable of operating with reliability and consistency – eliminating all possible traffic blockages between the automatic palletiser and despatch, even when all palletising lines are running simultaneously.

“Our old system was extremely manual, which made it less reliable and prone to frequent breakdowns which would interrupt the entire production facility. Additionally, the reliance on forklift drivers and warehouse worker interactions created a large safety risk. If you combine this with the general inefficiencies of manual forklift operations and the frequent level of maintenance needed to run them, this system was simply not futureproof,” said Tim. AGVs work to manage and automate

all activity within the warehouse that would otherwise be operated by manual machinery such as a forklift; working to connect both outbound and inbound products with automated truck loading.

The AGV’s high-precision navigation of the warehouse floor, combined with its dexterous design allows it to utilise any warehouse space, eliminating the need for extensive use of pallet conveyors.

With a smaller turning circle than a forklift truck it can easily manoeuvre in tight spaces.

“A core objective for this project was to implement a new solution that eliminated human contact to products,” said Tim. “Likewise, we wanted the solution to help us optimise our supply chain to prepare it for the future. The reliability of AGVs has given us the confidence that the product that we, as a company, have nurtured through the brewing and production process is going to be a good fit for our customers at the end of the line.”

Using the AGVs increases reliability, with the AGVs capable of working non-stop 24/7 every day of the year.

This is in addition to improving efficiency and accuracy of operations, thereby minimising mistakes, product damage and workplace accidents, which provides significant improvements in occupational health and safety standards.

“The major requirement for the Lion AGV solution was to operate at a faster rate than any palletisation activity done with a manual forklift, with the end result being to eliminate all manual activity completely,” said Tony Raggio, General Manager of Sales, AGVs, Dematic.

“The AGVs working at the Lidcombe facility are broken down into two distinct areas: zone one and zone two.

The zone one AGVs work to handle full pallets from a robotic palletiser, which has the capacity to handle both twin

MHD MATERIALS HANDLING we can in turn reduce the overhead costs of system maintenance for Lion.

The program offers assurance to Lion that the system has been supported in the best possible way, by us, the people who designed and built it,” said Tony.

BENEFITS

The Automated Guided Vehicles improve worker safety, decrease human errors and allow for 24/7 operation. pallets and single pallets. The AGVs are then brought over to the second zone, where the pallets are handled and moved on to a ‘roll on roll off conveyor’ and automatically loaded into the back of a truck,” said Tony.

AGV management systems controls the AGVs as well as interfaces with a company’s existing warehouse management system (WMS), to track product flow from production to storage and all the way through to despatch.

AGVs can also be programmed remotely to carry out required tasks.

“The robust design of our AGVs means it can withstand the typically challenging environment of a warehouse, all while providing a 360° safety field of protection with automatic sensors to detect any obstruction. This enables it to co-work with operators and any other warehouse machinery or vehicles,” said Tony.

THE AGV SOLUTION ROLLOUT For the solution to be deployed successfully, it needed to be implemented into Tooheys Brewery’s high pace and fully operational manufacturing and supply chain environment. During the rollout process, Dematic worked closely with Lion and other partners on-site, to allow Lion to continue producing the required rate of pallets of beer, while simultaneously integrating the AGVs. The AGVs were successfully installed and commissioned while the site was still in full operation, allowing Lion to continue general operations to meet all product delivery commitments.

Additionally, Dematic collaborated

with Lion to ensure the solution was tailored to, and working effectively within, the facility during this time.

“Through large amounts of coordination, we worked in collaboration with the Lion team and all other on-site partners contributing to the implementation of the project.

We had our highly experienced team on-site providing end-to-end management and support to ensure a successful rollout was achieved as quickly as possible,” said Tony.

Dematic had a team of in-house project managers, technicians, and AGV operators on-site throughout the implementation and testing phases of the AGV deployment project.

Dematic also helped Lion to develop guidelines and work processes and procedures for staff.

“Dematic did a great job overseeing and managing the project and ensuring that the solution was deployed correctly in the facility. This gave us a really good insight into what the AGVs would look like in action and how they would navigate the warehouse floor and make the best use if its space,” said Tim.

SERVICE AND SUPPORT Through its full service and support program, Dematic will continue to help Lion to optimise system uptime, ensure continuity of throughput and production efficiency.

“Our service and support program provides resources that ensure the best level of productivity is achieved. By working to reduce things like system downtime due to component failures,

For Lion, being able to invest in an advanced automation technology such as AGVs has been a big achievement.

“We are very happy with the progress and benefits we have already experienced using the AGVs in the warehouse. It has been an exciting process, and the possibilities are endless with this kind of automation, which has given us a really positive outlook towards how much better operations will run in the future,” said Tim. “This type of automation really ticks all the boxes for us.”

The AGV solution has supported Lion to construct a consistent measurement of product picking time, as well as eliminate any wastage, inaccuracies or mistakes made by human error throughout all phases of the picking process.

“The AGVs have helped give us real dependability for our end of the line process. By deploying Dematic’s AGVs, we are able to work within an area of operations that was once problematic – the transportation of pallets from palletising to despatch. With the AGVs, we know that they are reliable, and they have given us the confidence that our products are accurately and safely delivered to the end consumer with ease,” said Tim. The AGV solution has also introduced a predictable logistics strategy. This allows Lion to gain insights into the number of vehicles in action within the warehouse, and how many pallets can be produced per day, per shift, and per year – as opposed to a manual forklift environment which can create unpredictable outcomes such as injuries and staff availability.

FUTURE PLANS Based on the success at the Tooheys Brewery in Lidcombe, and the operational benefits and improved throughput already achieved, Lion will look to deploy more AGVs at other breweries across Australia in the near future. ■ MHD APRIL 2021 | 43

MHD INDUSTRIAL PROPERTY

PRESSING AHEAD WITH AUSTRALIA’S PRIME LOGISTICS HUB Hellmann Worldwide Logistics, Beijer Ref and Sydney Freezers are strengthening their supply chain capabilities by building purpose-built new facilities at one of Australia’s most centrally located industrial precincts. MHD reports.

W

hen MHD last caught up with the team behind Altitude – a new industrial precinct at Bankstown Airport in South West Sydney developed by Altis Property Partners – Kirby and Beijer Ref had just committed to a new 22,000 sqm facility at the new development.

Fast-forward eight months, and the leading refrigeration and airconditioning specialist has moved into its new facility. The new building at Altitude consolidates Kirby & Beijer Ref’s manufacturing, distribution and corporate headquarters and is set to be a global showpiece for its operation.

Paul Campbell, Director of Operations at Kirby & Beijer Ref Australia says being a part of the complete development process at Altitude has allowed the organisation to accommodate all aspects of its business and maximise the technology and sustainability opportunities.

“As a key part of the Beijer Ref sustainability strategy, the site includes a Beijer Ref Academy that will showcase an array of natural refrigerant solutions and offer natural refrigerant systems technology training to the broader industry,” Paul says.

A further 19,000 sqm of warehouse space will be available at Altitude from September this year.

44 | MHD APRIL 2021

On the back of the Beijer Ref commitment, the team has leased a 13,000 sqm facility to Hellmann Worldwide Logistics and a 10,000 sqm facility to Sydney Freezers, with a further 19,000 sqm warehouse to be available for lease in September 2021.

Moshe Greengarten and Keegan Ridley from CB Richard Ellis and Darren Curry and Nick Crothers from Savills are the appointed leasing agents on the 19,000 sqm facility that can be split into two 9,500 sqm warehouses. The warehouse that is currently under construction

by Richard Crookes Construction will feature nine tonne point loads to the internal slabs, six recessed docks and seven on grade docks, with a 46m wide hardstand. The office will be completed to a high-end spec, to suit head office accommodation.

Hellmann Worldwide Logistics, a German-based global logistics provider, will move into Altitude in June 2021 and will see the logistics giant consolidate two of its existing facilities at Ingleburn and Mascot.

According to Ray Vella, CEO at Hellmann Worldwide Logistics,

consolidating two of its facilities into one purpose-built site at Altitude will improve the organisation’s competitive advantage and further strengthen the service it can provide to its growing customer base in Australia.

Sydney Freezers, a leading food distributor, will take advantage of the central location to house its operations for the next 10 years. The facility, which is due for completion in August 2021, will benefit from the power available to the estate by including a 2,000 sqm temperature-controlled area suitable for storing frozen food.

Joseph Ajaka, Project Director at Altis Property Partners says with such major global and local organisations committing to the site, it reinforces Altitude’s position as a premium and well-located logistics hub.

“We’re thrilled to have such strong brands commit to Altitude at Bankstown Airport. By positioning themselves in the inner ring of Sydney, Hellmann, Beijer Ref and

MHD INDUSTRIAL PROPERTY

Hellmann Worldwide Logistics has committed to a 13,000 sqm facility at Altitude.

Sydney Freezers will benefit from enhanced supply chains, improved operational efficiencies, and ultimately providing a better service to their customers,” Joseph says.

LEADING PRACTICE IN ESG With sustainability a major priority of the development, Altitude features a number of environmental and sustainability elements – including 1.9-megawatt solar system, rainwater harvesting, LED lighting and smart meters throughout.

“Together with its manufacturing and warehouse operations, the site also features 1,400 square metres of office space, conference and customer event facilities and a 260-squaremetre flagship store,” Paul at Beijer Ref and Kirby says.

According to Tamara Williams, Director Environmental Social Governance (ESG) at Altis Property Partners, one of the organisation’s

key objectives is to be leading practice with regards to ESG. “At Altis, we embed ESG right through the organisation. Every person is responsible for championing sustainability and keeps this front of mind in every aspect of their roles,” she says.

Across the Bankstown Airport development, Altis Property Partners has embedded a network structure so solar power can be generated on site and shared across a number of different buildings.

“Solar is an important part of our development in industrial facilities, there is a lot of roof space and we want to use that to generate power and ultimately pass on cost-savings to our tenants,” Tamara says.

The development at Altitude will target a 5 Star Green Star rating

and includes further sustainability initiatives such as efficient lighting, five hectares of land for storm water and native plants throughout.

Tamara also emphasises the importance of connectivity and community. “Commercial buildings of the past had a tendency to ignore the importance of community. But at Altis, our focus is to make sure we generate and create a community that features ample amenities and great connectivity for workers to enjoy and utilise,” she says.

Furthermore, Tamara says that Altis is engaged in bringing tenants along its sustainability journey. “Tenants are the most important part of our business, so we engage with them and ensure that we deliver sustainable buildings, and that their operation can be as sustainable as possible,” she explains.

PRIME POSITION On completion Altitude will comprise 162,000 sqm of best-in-class warehousing and office accommodation across 40-hectares. The industrial estate at Bankstown Airport is the most centrally located warehouse development of this scale, with direct access to the M5 motorway, Sydney CBD, Port Botany and the new Western Sydney Airport. In addition, Altitude can accommodate a further 100,000 sqm of industrial accommodation pre-lease enquiry across the remaining pads.

Owned by Aware Super and managed by Sydney Metro Airports, the world-class precinct at Bankstown Airport provides tenants with a prime location that integrates with major infrastructure routes including rail, sea and air freight hubs. ■ See www.altitudeindustrial.com.au

MHD APRIL 2021 | 45

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MHD INDUSTRIAL PROPERTY

FROM START-UP TO SCALE-UP As technology start-up uTenant announces strategic investment from one of the world’s largest real estate companies, MHD sits down with Managing Director & Founder Matt Sampson and Co-founder Kyle Rogers to find out more.

W

hile 2020 was a year of challenges for many businesses, for uTenant, it was a record year of growth.

“We’ve been gaining so much traction in the market and growing our capabilities throughout last year,” Kyle Rogers, Co-Founder at uTenant says. uTenant is a technology platform that allows tenants of industrial property to connect directly with landlords in a confidential environment whenever they have a need to find warehousing space.

As a result of the impact uTenant has had across the industry forming in 2017, the business has generated a lot of interest from strategic investors and companies and has recently announced that global real estate giant JLL has acquired a minority stake in the technology start-up.

“This isn’t our first approach by any means,” says Matt Sampson, Managing Director and Founder at uTenant.

While uTenant’s purpose is to disrupt the industrial property market, Matt says it’s a major compliment to be approached by one of the world’s largest real estate companies.

“After a number of approaches from a mix of private and public investors, we decided to move forward with JLL because we felt they were best-aligned as a strategic investor to support our growth. This strategic alliance will enable us to continue to build out our proprietary technology, expediting our mission to become the world’s largest marketplace for industrial property and warehousing; helping connect product owners, logistics providers and landlords,” Matt says.

Stephen Conry, CEO of JLL Australia says uTenant’s strong and innovative business model is a great match with JLL. “It is a timely investment as we grow our

Kyle Rogers is the Co-Founder of uTenant, which plans to increase its capabilities in supply chain consultancy. industrial and logistics services off the back of a record year in 2020,” he says.

As a Fortune 500 company, JLL will support uTenant with building out their tech capabilities, while uTenant will work closely with JLL to ensure that any occupier’s needs are being matched to all suitable property options available in the market. Combining these resources provides tenants and landlords with a community of global experts and a full overview of the property market.

The team is already growing, and uTenant has recently announced the appointment of a Head of Product and Technology, James Kerr. James will be responsible for leading the development of uTenant’s tech capabilities – including the design and build of the entire process, acquiring and integrating the matching technology and ensuring that usability and functionality are prioritised.

“This industry loves the idea of technology and efficiency, but implementation can certainly be improved, particularly in industrial

real estate,” James says.

According to James, it’s surprising that while major technological transformations are happening with automation and e-commerce, finding warehouse, storage or industrial property is still largely a manual process.

“We now have the proprietary technology in place to help users with what they actually need,” he says.

“In uTenant’s case, we now have the opportunity to work with JLL to bring an online service that makes sourcing warehousing and industrial property much easier for the landlord and the tenant. For the tenant, this means providing them with listings that reflect their unique storage needs in the timeframe that they require.” uTenant is focusing its attention on building a first-rate technology platform that focuses on user experience. “We want to show the industry just how easy this all can be by providing a simple, user experience through a wellconnected platform,” James says.

MHD APRIL 2021 | 47

MHD INDUSTRIAL PROPERTY

uTenant Managing Director & Founder Matt Sampson (left) and Co-Founder Kyle Rogers (right) have announced their collaboration with JLL. Hence, the company is driven to ensure that uTenant is known not just an industrial property platform, but a one-stop-shop for all thing’s logistics.

“By housing all our solutions in one spot, we make it easier for the end user,” James says.

For James, while some currently see uTenant as an industrial real estate agency, this will change as uTenant becomes a central hub for all warehousing solutions. “We are pivoting the business to be the warehousing’s tech and solutions partner,” he says.

FUTURE GROWTH As uTenant’s primary Founder, Matt Sampson has had big ambitions from day one. “We set out to disrupt this industry, and we’re very proud of what we have achieved. I’ve always known that this industry needed a new approach that increased transparency and drove a better outcome for the tenant. Now we have the support and capital to grow our platform even further,” Matt says.

The collaboration brings the 48 | MHD APRIL 2021

market knowledge, connections, and the global resources of JLL together with uTenant’s innovative, creative, and disruptive business model. uTenant also plans to increase its capabilities in supply chain consultancy and start to work on network optimisation and strategy with its clients.

“We don’t want to just help our clients with their property needs, we want to be able to help them throughout their supply chain journey.

Whether that be through our tenders and acquisitions capabilities, our pallet matching service or through our supply chain consultancy. We want to move away from industrial property being a transaction-based industry,” Co-Founder Kyle says.

He adds that combining the strengths of two symmetrically aligned businesses excites him most about the collaboration with JLL. “Ultimately, our growing customer base will reap the rewards as we continue to develop the ultimate match making platform for tenants and landlords. While keeping

transparency and confidentiality at the heart of our mission, this partnership ensures our customers are informed and educated to make the best logistics and warehousing decisions for their business,” Kyle says.

As part of the transaction, JLL now holds a uTenant minority shareholding and board seat. It was a priority for both parties that uTenant remain independent and maintain its entrepreneurial edge.

“As this is a minority stake, we will keep our independence and drive to innovate the industry. But now we have the support of a global player,” Matt says. uTenant will collaborate with JLL and their team nationally to ensure customers receive maximum visibility, leading market insights and opportunities.

“To be able to secure investment from JLL, especially during a global pandemic, ultimately validates our mission. I personally could not be happier for our team, our loyal customer base, and look forward to a bright future ahead for uTenant and JLL,” Matt concluded. ■

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MHD SUPPLY CHAIN

LEVELLING UP After a record period of growth and demand, Körber Supply Chain is strengthening its position by recruiting further expertise across its software portfolio.

W

hen Nishan Wijemanne, Managing Director APAC at Körber Supply Chain, first started Cohesio Group, the technology start-up that was acquired by Körber Supply Chain in 2019, he emphasised that the success of the business was because of the larger team – not one individual.

“It’s a bit like a band and I’m the front man, people pat me on the back but really it’s the entire team that make things happen,” Nishan told MHD in June 2019.

However, Nishan’s commitment to his team and growing their skills and capabilities has not changed.

“We have our legacy team, but at the same time we’re always growing our team and capabilities. These new appointments across our software division will support us in continuing to partner with our customers to drive innovation and conquer complexity in their supply chains,” Nishan says.

Körber is dedicated to growth and investment – whether that’s in products, infrastructure or people.

“While we broaden our portfolio across the APAC region, we are building the team to go with it. With the industry moving so quickly and rising demand from our customers, we know we need the best talent in the industry to quickly adapt and innovate, and support our partners while they navigate through this period of significant growth and transformation,” Nishan says.

He explains that this is just the beginning for Körber Supply Chain APAC. “This is not a stop-gap approach for us. We recognise that to really grow and continue to service our customers with the partnership approach we pride ourselves on, we need to build the capabilities in-house and on the ground here in Asia Pacific. For us, this isn’t just about being reactive to the growth we’re experiencing, but a strategic direction to continue to grow and build the best capabilities across the region,” he says.

50 | MHD APRIL 2021

Körber offers a broad portfolio of software products, including Warehouse Management System (WMS), Transport Management System (TMS) and retail solutions.

Integration across these solutions with Körber’s broader portfolio is a major priority for Nish.

“The industry can expect great synergies across our technologies including software, Automated Mobile Robots (AMRs), Android Voice and mobility solutions we are offering our customers the opportunity to go on the journey with us as we push the boundaries of supply chain modernisation and digitisation,” Nish says.

This is also a key focus in Körber’s recruitment strategy. “Our unique proposition is that we can provide our customers with solutions across their entire operation, so we want the team to mirror that in their capabilities and knowledge,” he says.

For Nishan, this new investment in people is part of a long-term growth strategy for Körber.

“We work with our customers on strategy that goes well into 2025.

The supply chain is not just about the distribution centre anymore, it’s so much more and as an integration partner across software, automation and voice solutions we can help guide our customers through this transformation,” he says.

The new appointments currently include Anthony Beavis as General Manager ANZ at Körber Supply Chain, and Suman Shetty as Implementation Consultant at Körber Supply Chain Software, as well as an internal appointment for Lee Andrews.

MEET ANTHONY BEAVIS Anthony will join Körber Supply Chain as General Manager ANZ on 15 April. Anthony is a creative and dynamic leader with more than 15 years’ experience in international sales management. His experience includes working for global manufacturers, national distributors and solutions providers.

Most recently, Anthony was a part of the executive team for ANZ Voice Solutions at Honeywell. For Anthony, joining Körber presents a unique opportunity to work across the

Anthony Beavis, General Manager ANZ at Körber Supply Chain.

MHD SUPPLY CHAIN entire breadth of the supply chain.

“Körber’s broad portfolio is quite unique.

From robotics, to WMS and software it’s very exciting to be a part of an organisation that can partner with customers across every aspect of the supply chain,” he says.

Anthony thinks the market is looking for a partner who can do everything.

“A lot of people can do one part of the puzzle, but it’s extremely rare to be able to offer software, voice, automation and everything in between,” he says.

Coming from a strong voice and software background, Anthony sees Android Voice as a real disruptor to the industry and references the recent launch of Körber’s Android Voice solution on a pay-as-you-go model as the true game-changer.

“In supply chain you have so many peaks and troughs, we’ve got Christmas, Easter and online shopping days. It’s imperative to be able to scale up and down when needed. I think offering Android Voice on a subscription basis will open this solution up to many more businesses – large and small,” he says.

Anthony also complements Nishan in building such a dynamic and driven team.

“At Körber you can find the best talent in the industry. From headhunting the top talent, to developing the next generation of leaders and supply chain pioneers, the calibre of the team at Körber is what sets us apart,” he says.

“

Körber’s broad portfolio is quite unique. From robotics, to WMS and software it’s very exciting to be a part of an organisation that can partner with customers across every aspect of the supply chain.

”

MEET SUMAN SHETTY Suman Shetty has a background in finance and initially worked for a number of years in finance consulting. After completing

Suman Shetty, Implementation Consultant at Körber Supply Chain Software.

a Master’s degree in supply chain management, Suman began working as a WMS consultant.

“My passion lies in collaborating in a team and truly understanding what problems customers are facing and how a WMS can help solve these,” she says.

Suman says the market is heading into exploring a full breadth of supply chain capabilities and technology. “These days customers are looking at AMR, robot and hardware to complement and get the most out of their WMS investment,” she says.

This shift in the industry was largely the driving force for Suman joining Körber Supply Chain. “I want to grow as a WMS consultant, I want to be an expert in my field and I know that Körber will give me the opportunity to grow and expand my skill set,” she says.

Suman will join Körber Supply Chain as Implementation Consultant at Körber Supply Chain Software and be based in the Sydney office.

MEET LEE ANDREWS Lee Andrews has more than 20 years’ experience in warehouse, supply chain and 3PL operations. He has been with Körber since the Cohesio days where he worked on major AMR deployments for the organisation.

Lee’s new role is Professional Services Lead – APAC at Körber Supply Chain Software. As he makes a move to head up the Professional Services Department, Lee’s goal is to build a team and skillset to further disrupt the industry. ■

Lee Andrews, Professional Services Lead APAC at Körber Supply Chain Software.

MHD APRIL 2021 | 51

MHD MATERIALS HANDLING Ferag has teamed up with Quicktron, a Chinese developer of intelligence warehouses, among other new partners.

WELCOME TO THE THIRD PILLAR Ferag Australia is branching to its third pillar of success, offering intelligent intralogistics solutions alongside its global partners. MHD speaks with Philip Batty, Managing Director of the company’s Australian arm to discover more.

W

e’ve all heard the saying that there are “three pillars of success”. For Ferag Australia, they are transforming this ideology to welcome a new third pillar part of its business offering to the Australian market, through its partnerships with leading global intralogistics solution providers.

Founded in 1957 and headquartered in Switzerland, Ferag is regarded as a world leader in the development, manufacture and marketing of postpress processing systems.

The printing press began operating a seamless next-day delivery model before e-commerce and logistics giants like Amazon and Catch. “We recognise there were many synergies between the printing industry and the materials handling industry and are excited to expand our opportunities in the intralogistics industry,” Philip Batty, Managing Director of the company’s Australian arm, says.

In the latest e-commerce insights 52 | MHD APRIL 2021

update, Australia Post has revealed that national online purchases in January grew 44 per cent year-onyear, indicating a strong start to online shopping this year.

“Manufacturers, e-commerce giants, courier services and other e-trade businesses are catching up to Australia Post in terms of consumer demand for delivery. With the increase of volume across the entire Australian delivery network, rapid sortation has never been more crucial,” Philip says.

In e-trade businesses, picking is a vital component to harmonising a smooth operation. Modifying operations through automated solutions is a vital priority for players in the supply chain. “When it comes to material handling, automation is normal in the age of Industry 4.0,” Philip says.

As the industry continues to rapidly evolve, Ferag has joined forces with global partners to offer Autonomous

Mobile Robots (AMRs) as smarter, more flexible alternatives alongside Automated Guided Vehicles (AGVs) for a wide variety of material handling activities to help aid Australian companies streamline their growing operations.

THE THIRD PILLAR OF BUSINESS SUCCESS Philip says Ferag has been at the forefront of the graphic and print industry production systems and machinery supply. This includes Ferag Technology and 3rd Party equipment.

Ferag is the local company and the integrator.

“That was our first pillar of business, that is rock solid. We then established the second pillar: graphic and print industry consumables products,” Philip says. Ferag Australia is the importer of many consumable products that are manufactured across the globe.

Following a strong leadership in

MHD MATERIALS HANDLING managing these two pillars, Philip says the company has turned a new page and is pleased to welcome the third pillar, the development of the Ferag Australia Intralogistics business (ILO).

This business area supplies both Ferag Material handling technologies including transportation and sortation systems and 3rd Party systems like goods to person, sortation and automated packaging.

“These systems in many cases are developed around AGV and AMR technology,” Philip says.

“The development of the third pillar with the combination of Ferag technology and technology from our third-party suppliers allows Ferag Australia to offer a comprehensive product range to support a wide range of project requirements across many industry sectors.”

JOINING FORCES Ferag Australia has established relationships with Quicktron, HAI Robotics and Libiao Robotics (A.I.C

Systems) to supply their technologies into local intralogistics project opportunities within Australia and New Zealand. The company has also partnered with Panotec, Kalfass and Segbert to further strengthen this third pillar of business.

“This is a really exciting collaboration for the ANZ market that is seeing attraction from some of the major players in the e-commerce sector,” Philip says. “Having access to these very dynamic system suppliers allows Ferag to offer a wide range of solutions to all industry sectors.”

For example, Libiao robotics is an innovative technology company focused on development and innovation of logistic sorting systems.

The technology combines parcel sorting robots and robot control systems into one, which has been widely used in global e-commerce, post, retail and apparel industries.

“Australian companies can rely on our partnerships to be hands-on internationally. Our teams are working in China and across the

Ferag will offer Libiao Robotics for intralogistics projects.

globe to ensure a well-defined and high-quality project outcome is achieved, thus providing a seamless interface when delivering projects in Australia,” Philip says.

“There is now an opportunity to dramatically improve the capacity, flexibility and efficiency of our customers operation through our unique partnerships with leading global system suppliers,” Philip says. ■

Create your unfair advantage Prological’s team designs and implements tailored, innovative, commercially viable and operationally sustainable supply chain solutions in Australia and New Zealand. Partnering with our clients, we provide experience and expertise across the entire supply chain including warehousing, transport, network design and distribution strategy.

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MHD MATERIALS HANDLING

SERVICING THE INDUSTRY Martin Broglia, Managing Director for Bonfiglioli ANZ, sits down with MHD to reveal how the company used COVID-19 to reimagine the materials handling landscape.

Bonfiglioli equipment installed at a local assembly and repair facility in Sydney.

R

ecovery from the COVID-19 pandemic is well and truly in full force, although the materials handling sector still faces the brunt of coping with ongoing change across the entire supply chain.

Improvement in warehouse operational efficiency has been instrumental in driving the growth of the materials handling market.

Martin Broglia, Managing Director for Bonfiglioli ANZ, says the true driver comes from quality relationships within the sector. The company has many great relationships in the market, as a leading designer, producer and manufacturer of a full range of gear motors, drive systems, planetary gearboxes and inverters for industrial automation.

Broglia tells MHD how it has taken the opportunity to reflect on how it can better serve the market, and is excited

54 | MHD APRIL 2021

to share some major developments the company has undertaken during this period.

CLIENT-FOCUSED There will always be room for improvement, the question is when is the right time for change and when can you find time to change? In materials handling, downtime is the number one thing that should be avoided at all costs. However, sometimes it’s a breath of fresh air.

As Martin explains, the key highlight from the COVID-19 pandemic has been the ability to focus a magnifying glass on its operations.

“We’re taking stock and upping the ‘ante’. The company has a history spanning more than 60 years and 80 countries. Just because a business has been around for 60 years doesn’t mean they should keep doing things the same way,” Martin says.

He notes that the company is underpinned by its values and is committed to excellence, innovation and sustainability. Bonfiglioli has also been widely known for its strong industry solutions and its number one position in the planetary and worm gear market.

Bonfiglioli offers a wide product range for the logistics industry with the ability to handle anything from a small to a large product. Years of experience in this industry both locally and globally ensures the company can offer its customers best in class solutions for their materials handling and logistics applications.

“One can never be complacent and every interaction with a customer is an opportunity to do better,” Martin says.

Bonfiglioli has recently acquired an expert engineer from Italy to fly to Australia and upgrade all systems to further improve efficiency and supplier relations.

“However, during this time it’s also important to highlight the power of digital relationships through zoom and online chats. We can now maintain and build new relationships without barriers,” Martin says.

IMPROVING SERVICE Bonfiglioli has increased its stockholding and service teams as well as response time to meet market demands.

“It was my mission to improve workplace wellbeing and culture to further enhance our service to customers. By strengthening the leadership to ensure your team is on the same page, you will reap positive benefits for the longevity of the business,” Martin says.

Service delivery levels have been a key priority that the Managing

MHD MATERIALS HANDLING

“ Martin Broglia is the Managing Director of Bonfiglioli ANZ. Director has taken under his wing. “Perhaps COVID has taught us more than ever that relationships are what will pull you through the tough times – and this is exactly where we are focusing,” Martin says.

Martin notes that the company offers a large amount of inventory, and is

I’m proud to see a shift in the direction of the company for the better, it’s clear we engineer dreams but it’s also important to study and refine the process to get to the end goal.

”

adequately equipped to meet its customers’ needs during this difficult period.

“Bonfiglioli carries a large local stock holding and offers in-house service and technical staff to assist with field service and commissioning. Our engineering team is available to help with more technical applications,” he says.

He says the team underwent intensive training following the height of the pandemic to ensure customer service levels were at the highest levels and well supported. “I’m proud to see a shift in the direction of the company for the better, it’s clear we engineer dreams but it’s also important to study and refine the process to get to the end goal,” Martin says.

Taking time to find out what the customer needs and realising the dream for them is becoming the new way of doing business.

“The results are in the sales, and it’s been reassuring to see the resilience across the entire supply chain at a time when support is needed more than ever,” Martin says. “We are hungry for success and are committed to our clients. We want to continue building relationships – the type that is built for the long haul.” ■

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MHD SUPPLY CHAIN

SMARTER PACKAGING FOR HOME FURNITURE GIANT The world’s largest furniture retailer shares the instructions to how it assembled parcel fulfilment success through its partnership with Packsize at its major Australian distribution centre.

Marsden Park DC ships approximately 62,000 IKEA customer orders per month, 49,000 of which are processed through Packsize’s On Demand Packaging System.

“H

ere at IKEA Marsden Park distribution centre (DC), we experienced over 300 per cent throughput at the height of online shopping during stay-at-home orders last year. It was clear in that moment we needed to revamp our production flow,” Project leader at IKEA Australia, Lachlan Pembroke, says.

Major furniture manufacturers got the rug pulled out from under them by the COVID-19 pandemic. Lachlan says the work-from-home boom has been a significant driver to the consumer demand for office and home furniture.

“At the peak of lockdown in Australia, online customers were purchasing an array of items in home living, kitchen, and children furniture,” he says.

58 | MHD APRIL 2021

As a world leader in furniture and home products, many Australians turn to IKEA as their first choice for storage solutions.

With an estimated one third of Aussies still working from home a year after initial stay at home orders, Lachlan says it’s vital to have an optimised production flow that can scale as spikes continue in online order fulfilment.

TRANSPORTATION WITHOUT AIR Last year, IKEA Marsden Park DC jumped from servicing 1,000 orders per day preCOVID to 4,000 orders per day, across a diverse range of products, many of them bulky pieces of furniture.

“We realised there was a bottleneck in our operations on the packaging side,” Lachlan says. He notes the challenges

lied in the DC’s layout and parcel capacity and they were desperately seeking a solution to better service the thousands of customers looking to improve their homes and home workspaces.

“At Marsden Park, we were incurring costs for manual handling in our ‘box and man’ solution, and honestly looking for savings through a new packaging solution,” Lachlan says. “If we can save, then it means more saving for our customers.”

However, he says that saving shouldn’t come at a cost to values, especially when it comes to sustainability targets. Precovid, IKEA Australia was partly using non-recyclable packaging waste that customers had to dispose of, along with paying to ship air, that was creating a poor impression.

“We have strong values in sustainability, so it was essential for us to partner with a company who matches our culture and can help us meet our goals,” Lachlan says. He highlights the company’s long-term partnership with Packsize that has been key to transforming the DC’s efficiency.

“Our solution has a constant feed of corrugated board being fed into a machine that will cut the exact size box needed for the particular order. We’re building a box that is exactly the right size for the product, so you greatly reduce or completely eliminate the need for void fill,” Sean Ledbury, Managing Director at Packsize Australia says.

Packsize entered the Australian market five years ago and has seen rapid growth in this region. “As the e-commerce market grows here, so has our business,” Sean says.

By joining forces with Packsize, IKEA sought to minimise the different material

MHD SUPPLY CHAIN fractions and qualities, along with optimising production flow, while always keeping in mind the full journey of its products to customers’ homes, protecting the product, supporting efficient handling, and inspiring and informing the customer. In addition, payment for the solution is by cubic metre of corrugate, freeing up precious capital for other investments.

“Our packaging solution saves packaging costs of between 20 to 30 per cent, but it also enables our customers to ship 30 per cent more orders per container or truck. So, they can save costs, reduce their environmental footprint and also greatly improve the end customer experience,” Sean says.

SCALING UP FULFILMENT Online retail accounts for just under half of IKEA Australia’s business, all of which is serviced by the Marsden Park DC. The DC ships approximately 62,000 customer orders per month, 49,000 of which are processed through Packsize On Demand Packaging System.

“Packsize invented on-demand packaging to reduce waste and the environmental impact of packaging.

We’re proud to say that we have done not only that, but have also reduced costs and improved the end-customer experience as well,” Sean says.

“We have machines that can do from 200 boxes an hour up to 1,200 boxes an hour. So, if a customer is seeing their volume increase, we can come in and swap out a machine to give them more capacity and this doesn’t need to cost them anything,” he says.

This also creates opportunities

IKEA uses Packsize Australia machinery to cut box sizes, minimise different material fractions, and optimise production flow. for retailers to explore installing on-demand packaging capabilities in the back of a bricks-and-mortar store to fulfil orders from a central location or service click and collect orders, an option that many retailers are currently exploring.

Lachlan says the on-demand packaging system was implemented the year prior to the COVID-19 pandemic, in 2019. “Because of our initial partnership, I knew we could rely on the packsize team to help us crank up our packing fulfilment and find the perfect solution,” he says. Lachlan draws on the extremely low cost of implementation, and the local sales and support from Sean Ledbury and the greater packsize team.

Packsize Australia provides IKEA with on-demand packaging solutions, such as a machine that can cut 200 to 1200 boxes an hour.

“Our order lines peaked at 1.8 last year, usually sitting between 1.2 and 1.6. This is why we require flexibility to easily switch and expedite production flow that allows us to be agile, whilst also eliminating tedious manual labour,” Lachlan says.

Packsize’s On Demand Packaging solution has saved IKEA significant packaging costs since its installation in 2019 – with an annualised return on investment of 463 per cent. It has enabled IKEA Australia to optimise its packaging operation by reducing the cost and improving the quality of packaging, reducing product damage, tripling warehouse efficiency, and being one step away from providing customers with 100 per cent recyclable and compostable packaging.

For IKEA, 2021 is the ‘year of sustainability’. The Marsden Park DC’s on-demand packaging solution has allowed it to almost entirely phase out unnecessary single-use plastic packaging in terms of the box and the filler.

“We’ve been able to significantly increase its parcel quality and reduce product damage,” Lachlan says. He says the DC proudly operates three packsize on-demand machines and a conveyor system. “We’re able to further optimise through imaging hardware and software, but ultimately it’s the foundation of sharing common goals that are in favour of the consumer and wider sustainability that continues to enable the success of our partnership with packsize.” ■ MHD APRIL 2021 | 59

MHD MATERIALS HANDLING

Modern Motor Trimmers owner, Garry Spouge has long been a fan of Toyota products.

TRIM AND TERRIFIC WITH TOYOTA FORKLIFTS M

A Western Australia motor trimming business has regularly grown its exclusively Toyota Material Handling forklift fleet as it commensurately expanded over the past decade.

odern Motor Trimmers, located in the south-eastern Perth suburb of Welshpool, started out in general trimming and the restoration of vehicle seats, later becoming the exclusive Western Australia agent for ISRI premium driver seats.

It purchased its first Toyota forklift, a 1.8 tonne gas-powered 32-8FG18, a decade ago, after identifying a need for specialised seating and refurbishment in the mining and construction sectors.

Modern Motor Trimmers owner, Garry Spouge, says seating sales comprise around half of his business with the other half specialising in trimming the cabins from large machinery such as from the mining sector. “Those vehicles get a very hard life and routinely need refurbishment,” Garry says.

60 | MHD APRIL 2021

“We take underground and aboveground mining cabins, for example, and refurbish them. We receive them already welded-up and painted, with nothing in them, and we apply sound-deadening material such as foam and panels. Then we upholster them by cutting perforated material, folding it and gluing it into place to make it comfortable and pretty.”

Such specialised work required the addition of several new Toyota machines, the most recent of which is a Toyota 32-8FG30 3-tonne compact forklift, which Toyota Material Handling Australia (TMHA) WA area sales manager, Tony McGuire, says was chosen for its increased capacity compared with the business’s ageing 1.8-tonne Toyota forklift.

“As Garry’s business became bigger,

he incrementally added more of our equipment to his fleet,” Tony says.

“When he branched into overhauling cab bodies from dump trucks, he needed a forklift with more capacity.

We took a look at what he was doing and recommended a forklift with more capacity, so he now has a compact 3.0tonne 32-8FGK30 dual fuel gas/petrol with a side-shifting fork positioner and a deluxe multi-function display with weight gauge.

“This is in addition to his batterypowered 8FBRE16S Toyota reach truck and Bravi Sprint picker platform.”

Modern Motor Trimmers’ Garry Spouge says TMHA was on hand when the business needed to up-spec its fleet.

“When we got into the heavy machinery cab-lining business, we needed different

MHD MATERIALS HANDLING and more capacity machines that could reach the cabins and work comfortably and safely at height,” Garry says.

“Our rep Tony McGuire came around and had a good look at how we were operating and made suggestions based on our main duties as to what Toyota equipment would be most appropriate and efficient to help us improve our output. For example we have shorter tynes on the new forklift and an attachment that assists moving different sized and shaped objects around. We also have a load weight indicator which we use to determine weight of the load on the tynes against the forklift load plate.

“Tony really helped us understand the forklifts so we have peace-of-mind knowing we have the right equipment for the job.”

Garry says several reasons led him to choose Toyota Material Handling equipment over other brands, including pre-existing business relationships, experience with Toyota motor vehicles and TMHA’s reputation for reliability.

“We go way back with Toyota and they are even a customer of ours. In the earlier days of their Huski skid steer loaders, about 20 years ago, we used to help them with foam sound deadening treatments.

The Huski cabs have changed quite a bit since then and we don’t do that anymore, but we still supply clear side-linings for Toyota forklifts, which protect operators from rain and wind.

“Our clear curtains differ to others on the market in that they are made from a thicker PVC material that lasts longer and holds better in place. It doesn’t turn into ‘liquorice’ when the weather turns hot, which it does extremely here in WA. “We were at Toyota Material Handling in Perth with our clear curtains just the

other day. It’s nice to have a rounded relationship whereby we are suppliers to each other.”

Garry’s experience with Toyota passenger vehicles also helped make the step over to Toyota Material Handling equipment an easy one. “I’ve had many Toyota vehicles over the years and they have proven to be reliable and last the distance. I’ve had a LandCruiser and I’ve just ordered another one.

“I’ve had other Toyota models and have five HiLuxes in our work fleet at the moment. Toyota’s vehicle performance gave me confidence to invest in Toyota material handling equipment. They make arguably the best affordable cars that last the distance and I expected the same would extend to their other machinery. We were already supplying Toyota Material Handling as a customer so it made sense to further cement our business with them.”

TMHA’s Tony says Toyota’s reputation for safety, reliability and longevity played heavily into Garry’s choice of handling equipment: “Definitely the reliability was a major reason for Garry - he’s got a proven track-record with us,” he says. “His machines are reliable and just keep on going and that’s the way he likes it. His guys get on them in the morning and off they go.”

Tony says this reputation is at the core of TMHA’s value proposition. “We at TMHA call it QDR which stands for quality, reliability and durability. This is a key tenet of our Toyota Advantage and is an important selling point for our customers.”

In a personal touch, Tony has arranged for Modern Motor Trimmers’ forklifts to be custom-painted. The business’ first 1.8-tonne forklift was

One forklift was painted blue and yellow in honour of the AFL West Coast Eagles. painted in black as a nod to Garry’s New Zealand heritage and his [then] company colours. The latest 3.0-tonne forklift bears the blue and yellow colours of his favourite AFL team, The West Coast Eagles.

Such attention to detail is reflective of the fruitful past and ongoing relationship between Toyota and Modern Motor Trimmers, one that Garry expects to continue well into the future. “Our business with each other goes a long way back. Toyota has been a big part of our journey,” he says. “They have simply been the best for us, I can say that wholeheartedly, and we’ll be sticking with Toyota as long as we’re around.”

Such plans include adding two new TMHA lift platforms and some sweepers to the fleet when it moves to a new specialised factory. ■ For more information freecall Toyota Material Handling Australia on 1800 425 438 or visit toyotamaterialhandling.com.au

MHD APRIL 2021 | 61

MHD SUPPLY CHAIN

BRINGING UNFILTERED ACCESS TO DATA Matthew Ballentine, Geotab Regional Manager ANZ, tells MHD how the company is now one of the largest telematics outfits in the world and has become the first to surpass two million connected vehicles built on a single, open platform.

Q. What is Geotab’s position in the Australian supply chain?

A: The Australian commercial telematics market is currently one of the fastestgrowing markets in the world. Despite its rapid growth, fleets in regional and remote Australia face some of the toughest conditions in the world and require a comprehensive telematics platform. With over 30,000 connected vehicles in the continent and more than 2 million vehicles across the globe, Geotab has proudly served the Australian market for more than 16 years. Geotab processes over 40 billion data points per day to provide customers with datadriven insights. By adopting a telematics platform, like Geotab, Australian transportation companies can help improve the reliability of their supply chain by gaining real-time data insights into multiple facets of their business.

Plugging into a standard OBD-II port, each Geotab GO device is equipped with features for accurate fleet diagnostics, vehicle health assessments and more, allowing businesses in transportation to maintain true continuity while running their distribution chains.

Q: Why are your solutions important and unique?

A: Geotab brings a unique telematics platform to the market in a few different ways. First, Geotab provides an open platform which gives our customers unfiltered access to their data. This is important because it allows customers to have complete control over their data, enabling companies to share and utilise the data as they see fit. Going further, Geotab provides customers with access to its robust platform of hardware Add-Ons and software Add-Ins, the Geotab Marketplace, that seamlessly integrate with Geotab’s open platform. Secondly, 62 | MHD APRIL 2021

Geotab provides an open platform which gives its customers unfiltered access to their data.

Geotab supports the largest set of EV makes and models available, including medium and heavy-duty EVs and buses. With Geotab’s fleet management platform, MyGeotab, electric fleets can feel confident that they have full access to their EV data and Geotab can provide the full telematics support to help fleets transition from 0-100% electric. Geotab offers a wide-range of fleet electrification tools such as the EV Battery Degradation tool, the Electric Vehicle Suitability Assessment (EVSA) tool and the Temperature Tool for EV Range, all of which are available to help measure key performance indicators to ensure the transition and maintenance of EV fleets is as simple as possible. Lastly, Geotab delivers its technology through its unique Reseller model, which enables Geotab to allocate its resources to deliver the best-inclass products without forfeiting quality customer service for their end users.

Q: Can you share more about this solution in practice?

A: Many governments are focusing their efforts on reducing their

carbon emissions and reaching their sustainability goals. The City of Seattle, for example, has an ambitious goal of cutting carbon emissions 50 per cent by 2025 and becoming fossil fuel free by 2030. Geotab was the telematics provider chosen to help meet their sustainability goals, accurately measure electricity use by the city’s electric vehicles and determine which internal combustion engine (ICE) vehicles could successfully be cycled out for EVs. By integrating the Geotab platform, the City of Seattle was able to measure the true cost and benefit of EVs and support their sustainability efforts.

An Australian client in the global logistics category also recently adopted Geotab’s telematics platform to help limit speeding and harsh driving events and better manage costs and out of hours use of their light fleet assets.

By integrating the Geotab platform, this client was able to implement rule changes and alerts to help adjust driver behaviour. By doing so, they noticed a reduction in fuel waste and vehicle misuse which enabled the company to reduce costs and improve safety.

MHD SUPPLY CHAIN Q: In today’s demanding and fast paced supply chain, why is optimisation key?

A: The COVID-19 pandemic has had a major impact on supply chains and the global economy as a whole.

Organisations in charge of maintaining healthy, expedient supply chains have been tasked with finding immediate ways to restore a sense of normalcy to their operations. Australian supply chains have faced fluctuating demand levels which have put added pressures on businesses and in some cases have stretched already constrained budgets to help meet these demands.

By implementing a comprehensive telematics platform, businesses are able to help keep fleets on the road and the supply chain moving with better maintenance planning, better fuel management, improved electric vehicle transition or operation support and improved safety measures to help keep drivers safe from injury or collision and much more. By gaining greater insights and control over operations, businesses are equipped with the tools needed to help improve various facets of their

business operations and potentially get more done with less.

Q: How are you spearheading sustainability targets?

A: Geotab has long stood behind its fleet management pillars: Productivity, Optimisation, Safety, Compliance and Expandability. The sixth and newest pillar, Sustainability, reflects the role that telematics and connected vehicles play in helping businesses reduce their environmental footprint. Demonstrating its commitment to sustainable innovation, Geotab recently announced it officially supports 100 EV makes and models, securing its position as a global leader in EV support. Reaching the 100 milestone for EV model support is a great opportunity to reflect on how far Geotab has come to support businesses and fleets who are striving to reach and surpass their sustainability goals.

Going further, Geotab has introduced a variety of tools and resources including the EV Battery Degradation tool, the Electric Vehicle Suitability Assessment (EVSA) tool and the Temperature

Tool for EV Range. All of these tools are available to help measure key performance indicators to ensure the transition to fleet electrification is as simple as possible. For example, with the Electric Vehicle Suitability Assessment tools, Geotab uses the telematics data of a customer’s existing assets to match specific vehicles with a suitable EV replacement. This addresses one of the key fears with EVs, range anxiety. Based on a specific vehicle’s history, fleet managers can be assured that the replacement vehicle can cover the distance required on battery power, or by plug-in hybrid, providing confidence that customers are adopting the right electric fleet. Since Geotab Australia is a member of the Electric Vehicle Council, we know that transportation accounts for almost 20 per cent of Australia’s carbon emissions.

With this in mind, Geotab is committed to helping Australian organisations lower these emissions by helping simplify the transition to electric and by providing greater EV support for mass electric fleet adoption. ■

Your trusted partner for logistics and materials handling Decades of experience in developing specialised solutions, combined with our expertise in logistics and materials handling, makes Bonfiglioli your trusted partner.

https://www.bonfiglioli.com/australia/en

MHD TECHNOLOGY

DESIGNED FOR SAFETY Greater efficiency across the supply chain begins with the production process. Barry Staff, Director of Automaint Solutions, shares the importance of reliable sensor solutions to service Australia’s local and rapidly growing industries.

W

e’ve all heard the saying that ‘safety is key’. This is a concept that has especially ramped up during the COVID-19 era, but continues to be paramount in solutions and service for the manufacturing industry.

Therefore, many top manufacturers rely on collaboration with external experts to ensure complex regulations, demanding technical implementations and ongoing machine safety is consulted thoroughly.

Barry Staff, Director of Automaint Solutions says that’s why its ongoing partnership with the experts from SICK Australia is essential to the company’s ability to service the manufacturing industry.

ACHIEVING MORE WITH AUTOMATION Many Australian thought leaders recognise the importance of moving forward with this transformation to remain globally viable in an everchanging technological world. In a report by Standard Australia, CEO Bronwyn Evans explains that “long-term productivity and global competitiveness of Australian manufacturing will be dependent on how well we transition into the fourth industrial revolution”.

Barry says that advanced automation is essential to achieve this goal and enable Australia to lead the market in advanced manufacturing. “Automation is at the core of our business – it’s even

SICK Safety light curtains are ideal for compact palletisings applications. in the name. Automaint Solutions has over 40 years of experience servicing the manufacturing industry,” he says.

Automaint Solutions services its lenient through full automation, manufacture, consulting and project manufacturing experience. Barry says it works closely with leading names in the packaging, pharmaceutical, food and beverage, protein and automotive industries.

“We’re based in Melbourne’s northwest and proudly remained consistent during the height of the pandemic.

We’ve since picked up a lot more project work and managed challenges that many industries have faced,” Barry says. He notes that the company’s team of engineers are closely aligned with maintaining safety as the top priority.

Recently, Automaint Solutions underwent a pelletising application that utilised SICK sensor solutions.

“Our clients need machinery that can essentially run all day and night, especially in major distribution centres when time is of the essence. We focus on the machine’s productivity and safety so they can count on their products meeting demand,” Barry says.

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64 | MHD APRIL 2021

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MHD TECHNOLOGY quality is one of the key corporate targets. Furthermore, modern packaging machines and plants require an intelligent and flexible safety concept.

“We have a long-term partnership with SICK, who help us complete our concepts and development through their sensor intelligence and focus on safety,” Barry says. “Our collaboration allows us to contribute to local manufacturing, working together to implement the most cost-effective solutions.”

Barry notes the implementation of SICK’s Cylindrical photoelectric sensors GR18S through a recent pelletising application as a fundamental part.

“This product implementation enables efficient automated load picking and transfer. As the totes are transferred from the belt to the vehicle, SICK sensors perform outstanding checks that prevent challenges or obstacles in its way,” he says.

More on safety, Barry highlights the ability to rely on SICK ReLy safety relays to further add reassurance and speed for the company’s pelletising

Barry Staff, Managing Director of Automaint Solutions. project. “Through simple wiring and minimal installation efforts, the sensor is able to rely on fast response times for compact machines that results in a high level of productivity,” he says. A protection system consisting of SICK deTec Safety Light Curtains around the hazardous area prevents any intrusion by a person or unexpected object.

When reflecting on the ongoing partnership, Barry says the shared values and ambition to drive output

in a fast and efficient manner has been key. “In the past few years SICK has really stood out in the market with the quality of its sensors and the affordability too,” he says.

In materials handling, increased productivity and short downtimes are the keys to success. “We can trust that SICK sensors can be suitable for a wide range of different applications, be an economical solution and have a long product service life,” Barry says. ■

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MHD TRENDS IN IOT

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IOT: THE REAL GAME CHANGER

During our recent webinar about the Connected Supply Chain hosted by MHD, we asked our audience what the biggest hurdles are to implementing IoT solutions.

Thirty-two per cent said the business case doesn’t stack up and 30 per cent said it is difficult to get the right technology fit. The truth is, both are interrelated.

I

n this month’s IoT Trends column, we share insights about how astute innovators in industries provide now end-to-end IoT-solutions in the Supply Chain Industry that truly disrupt the status-quo. It might be surprising that we look at pest control issues in critical logistics infrastructure and workplaces, however, it makes the point how ubiquitous the IoT is becoming.

According to Peter Taylor, General Manager at Adam’s Pest Control, the pest control industry is not known for its innovative or forwardthinking solutions.

“It’s a very traditional industry that hasn’t really had a desire to innovate or look at ways of doing things differently,” Peter says.

With a background in finance and funds management, when Peter joined Adam’s Pest Control 16 years ago, he knew he wanted to look at a new way to manage rodent issues.

Adam’s Pest Control runs the remote digital pest monitoring solution on Thinxtra’s 0G Network.

66 | MHD APRIL 2021

“I am more familiar with data and spreadsheets, and I really wanted to explore ways we could solve the issue of pests in a more data-driven way,” he says.

Peter started on a journey of exploring different kinds of technology and networks to track rodent movements, in order to gain a better understanding of what the real issue was.

In the pest control industry, it’s common practice to lay bait and check activity again a month later. But in the world of logistics and FMCG, waiting a month can be detrimental to an organisation’s reputation and also creates an ongoing issue within the warehouse.

This was the case for one of Adam’s Pest Control clients, Woolworths. “If you’re a large retailer like Woolworths, you simply can’t risk to leave the bait and revisit it a month later,” Peter says.

DATA DRIVES RESULTS Peter commenced a journey of exploring ways to track pest activity.

“We started working with connected sensors about 10 years ago. Firstly, starting with Wi-Fi, but we soon realised it was too challenging as the signal isn’t strong enough for the range we needed,” Peter explains.

From here, Peter and his team started to explore 3G and 4G, but to no avail. “Don’t waste your time with 3G connectivity,” Peter says. “The high power consumption is a major issue; the battery in the sensors just won’t last long enough.”

This is when Peter started to research Internet of Things (IoT) solutions.

“In 2017, we started to explore the IoT-enabled digital monitoring solution from Cre8tec. We worked on proof of concepts throughout 2017. We had about four test sites

in Melbourne CBD and proved it worked,” he says.

Adam’s Pest Control runs the remote digital pest monitoring solution on Thinxtra’s national 0G Network. After exploring this option with a number of large Australian businesses, including a 24/7 entertainment centre, an education provider and Woolworths’ network of distribution centres and stores in Melbourne and Sydney, the solution has provided remarkable results.

“Many of our clients have gone from major pest issues to basically none at all, and this is driven by the data,” Peter says.

The connected IoT sensors provide Adam’s pest control team with up-todate information that communicates clearly and accurately where the real issue is.

“If we know exactly where the activity is, then we can proof the facility by closing doors, dealing with hygiene issues and securing any ways that rodents can get in,” Peter says.

This was what happened with Woolworths distribution centres. In less than a month they went from having an issue with rodents to none at all through simply tracking the entry points.

With Peter’s history in finance and funds management, he always worked with data analysts and therefore hired one to join the team at Adam’s Pest Control. “This is largely unheard of in this industry, but I knew that if we wanted to solve this issue, we needed someone to analyse the data,” Peter explains.

By having a data analyst in the team, Adam’s Pest Control can look at what is happening at a site every morning and communicate what needs to be done to deal with the issue. It’s a much quicker way of solving the problem, Peter says.

Furthermore, the challenge of network reach and coverage is with Thinxtra’s 0G Network no longer an issue.

“When it comes to indoor tunnels, cellars and concrete walls that we need to have a signal reach through, we can use micro stations that can easily increase the coverage wherever we need it,” Peter explains.

For many organisations a pest issue is more than the damage it makes to their operation, it’s also reputation.

For Woolworths, operating in the fresh food industry, a pest issue is something that needs to be addressed as early as possible, which is why this

innovative IoT way of tracking and solving the issue was a huge benefit.

“Instead of having a guess at where the movement is, within a month we had solved the issue by analysing the sensor data and activity heat map and made the changes needed to stop the entry points,” Peter says.

An added benefit to solving pest control issues with data analytics, is that there is a dramatic reduction in the toxic materials needed, which for FMCG providers such as Woolworths is a particularly positive outcome.

Adam’s Pest Control’s growing clientele are thrilled with the results and reap the benefits.

The partnership with Thinxtra unlocks the value of IoT for their customers in the easiest and most costeffective way.

At Thinxtra, we believe that every business problem calls for a fit-forpurpose specific solution to deliver real benefits. Peter Taylor is a true visionary and IoT innovator who took a traditional industry to a new playing field. It is fantastic to see how more and more partners in our ecosystem disrupt their markets and deliver game changing solutions to their customers by embracing the IoT, which is clearly not just a better mousetrap. ■ MHD APRIL 2021 | 67

MHD PROPERTY FOCUS

MELBOURNE’S BOOMING NORTH In this month’s Property Focus, MHD catches up with experts from Colliers industrial team to learn more about the growth taking place in Melbourne’s north. Corey Vraca, Senior Executive – Industrial and Mitch Purcell, Executive – Industrial at Colliers run through the latest developments.

W

ith industrial property being one of the standout performers of the last 12 months, it’s no surprise to learn that Melbourne’s highly sought-after and centrally located industrial precincts are experiencing record demand and uptake.

“The market is in a very good shape, we’ve seen our sector be very fortunate and resilient through the economic challenge of COVID-19,” Corey Vraca, Senior Executive at Colliers says.

Colliers’ core suburbs in Melbourne’s north include, but are not limited to, Tullamarine, Keilor Park, Epping, Somerton, Campbellfield and Thomastown. “These are the suburbs that we are currently tracking extensively,” Corey explains.

With vacancy rates across the eastern suburb at record lows, Melbourne’s north is no different. “At the end of Q4 last year vacancy rates for buildings between 750sqm – 3000sqm were at around 6.7 per cent, currently we’re looking at 3.7 per cent,” Corey tells MHD. Furthermore, across the area only 54 out of 1456 properties are currently vacant. “When we look at how industrial property has performed, this high level of occupancy in such a prime location isn’t

Suburbs in Melbourne’s north, such as this lot in Epping, are currently tracking extensively.

68 | MHD APRIL 2021

Corey Vraca, Senior Executive at Colliers really a surprise,” Corey says.

Campbellfield is Colliers’ biggest market in this area and there is a distinct lack of availability in this suburb.

“Property in this area is currently tightly held, representing a similar situation generally experienced across Tullamarine and Keilor Park,” Corey explains.

In late 2020, DHL announced it would be taking over Kaufland’s 110,000 sqm distribution centre in Merrifield Business Park in Mickleham, Melbourne’s north.

This news came after the German-based grocery chain abandoned its plans to launch in Australia and decided to sell its distribution centre network.

Mitch Purcell, Executive – Industrial at Colliers “This is a prime example of the scarcity of land in this area, it didn’t take long for a business to grab the opportunity to be located in Melbourne’s north even for a site of this size,” Corey says.

The speed at which properties are being snapped up is a testament to the popularity of the area. Corey points out that Epping is where a lot of the new activity in terms of building and construction is taking place, however once buildings reach practical competition it’s only matter of weeks before they are sold or leased.

“We just leased two buildings of circa 1200sqm on Jersey Drive, Epping and

MHD PROPERTY FOCUS they were snapped up within a week of completion,” he says.

When it comes to cost, the popularity and scarcity is reflected in the rising costs of rent and land. “In Tullamarine and Keilor Park, we’re seeing rental rates achieve around $110 to $120 dollars per sqm. We’re also seeing a sharp increase in Epping, which is slowly catching up to Tullamarine and Keilor Park,” Mitch Purcell, Executive – Industrial at Colliers says.

Another changing factor in the market this year is that Campbellfield historically had the highest turnover rate in the area, but now its sitting at a record low of 2.7 per cent vacancy, Mitch reveals.

For logistics providers looking for their next site, it’s becoming increasingly difficult to find in Melbourne’s north and as a result Colliers industrial team in this area have had a busy start to the year.

“This year we have completed in excess of 25 transactions in Melbourne’s north with the majority of transactions being across the Epping and Thomastown industrial precincts,” Mitch says.

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With demand driving low vacancy rates and higher prices, Corey says the north still provides a premium location and opportunity for many organisations to base their distribution or manufacturing operations.

“Ultimately it comes down to what your priority is, whether it’s affordability or location,” Corey says.

With Melbourne’s north offering access to the major arterial roads and unrivalled access to Melbourne’s airport and CBD, it’s an attractive proposition for many businesses. Particularly with the rise of e-commerce and an enhanced need to be closer to the consumer.

“While Australia is still in its infancy with regards to e-commerce uptake, it’s certainly growing, and the next talking point is around that last mile challenge.

We’re going to see a lot more industrial spaces in that sub 3000sqm to 4000sqm range and this area is ideal for those kinds of facilities,” Corey says.

While demand may be close to outstripping supply, there are new developments in Melbourne’s north that

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Corey says offer a rare opportunity for those looking to move into the area.

“Diggers Rest, approximately 32km north of Melbourne, is experiencing substantial growth. As the infrastructure develops, this will be one of the most affordable sites to purchase land in Melbourne’s north,” Corey says.

With the area to benefit from the North East Link, the biggest road transport project in Victoria’s history, Melbourne’s north is set to remain as one of the most sought-after industrial areas in Victoria.

While the price for land and leaseholds in Melbourne’s north may be rising, the infrastructure, efficiency in the last-mile and access urban population will keep driving demand in this area.

With new developments in areas such as Diggers Rest offering a chance to take advantage of location at a lower cost, it’s up to tenants to decide whether it’s location or affordability at the centre of their operation. “Most of the new estates are focused around infrastructure, so what one lacks in affordability, they make up for in location,” Corey says. ■

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RETHINKING THE SUPPLY CHAIN ORCHESTRA: LESSONS FROM COVID-19

T

he pandemic has exposed many weaknesses in our supply chains, the biggest being the lack of collaboration between different supply chain stakeholders.

We have all seen the videos of individual musicians being collated together to form orchestral pieces. While the efforts are admirable, the final products are admittedly not as good as a live performance – they were missing a conductor. This is analogous to our supply chains in Australia. The best-inclass supply chains have well understood that it takes a great conductor to turn the supply chain symphony into a masterpiece.

Supply chain management is often referred to as a branch of operations management. Prior to supply chain management being introduced as a concept almost half a century ago, organisations bought their materials locally (or made them internally), processed them, and sold their final products to local markets. It was easy for managers to have everything under their own control using standard operations management tools and techniques.

Things started to change dramatically with globalisation because organisations were now required to deal with several stakeholders, both internally and externally. I refer to these stakeholders as the orchestral sections that work together to create the supply chain symphony. The management is the conductor who runs the show and is held responsible for synchronisation of all activities.

The only form of collaboration prior to supply chain management was “internal” collaboration between individuals within the organisation.

However, with the involvement of external stakeholders in multi-layer 70 | MHD APRIL 2021

operations (what we term as supply chains), collaboration can be either internal (e.g., collaboration between different functions or departments) or external (e.g., collaboration with external stakeholders and third parties).

The different functions of an organisation such as marketing, sales, production, procurement, and logistics are the primary orchestral sections (internal stakeholders) that play the symphony, of course under the leadership of the conductor. The leadership comes with certain challenges. Within the organisation, tensions between different functions are inevitable given that individuals and departments are performance measured against different criteria. Externally, collaboration with customers, suppliers, and third parties are more challenging than ever before given that different entities in a supply chain have different goals and thrive to maximise their own utilities.

It all comes down to the management.

Senior managers have realised the essence of all types of collaborations – as often and unsurprisingly addressed in the strategic intent documents. We have seen statements such as “we are going to be a truly collaborative organisation that...”, but the IT infrastructure, education/ training, and the organisational culture are often the bottlenecks to achieve the desired outcomes. We must remind ourselves that a conductor can only run the show if all the required instruments are available (infrastructure and technologies) and synchronisation of all instruments to create harmony is achievable (collaboration and engagement of all employees and supply chain stakeholders).

Most organisations have a big pool of data from their operations, but the data is usually in a complete mess because it

Ben Fahimnia is an independent director of the Supply Chain & Logistics Association of Australia (SCLAA).

C

M

is collected, stored, and used differently, inconsistently, and unsystematically by different individuals and functions/ departments. This is where digital transformation and organisation-wide platforms/guidelines for data collection and processing will come to help.

The drum beat needs to be set by the chief executives, but the conduction is in the hands of operations and supply chain managers. There are various approaches to help these managers, and the employee is adequately instructed and incentivised to take collaboration seriously. We can only expect our employees and managers to take collaboration seriously and be comfortable collecting and sharing information/data if they understand the rationale and are held accountable. This is to say that we need specific guidelines and approaches to take the collaboration concept from the chief executive to the frontline.

This is obviously not an overnight exercise, but rather a longitudinal process. What is important to understand is that a supply chain can only be optimised if collaboration is institutionalised. It comes with some costs in the short-term, but has an attractive end product: “a cohesively assembled orchestra to play a unique supply chain symphony”. ■

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MHD FROM THE ALC

ENHANCE SAFETY AND PRODUCTIVITY A

LC members have longed argued that the Heavy Vehicle National Law (HVNL) should require operators to advise the National Heavy Vehicle Regulator (NHVR) where vehicles are garaged, to limit the incident of ‘phoenixing’ in the industry and to prove that a nominated amount of capital is available to the business.

They also believe that operators should use equipment compatible with standards made to the National Telematics Framework to collect identified information. Members also argue that safety management systems (SMS), scalable to the size of the business, and meeting standards made by the NHVR, should be maintained and followed by relevant businesses.

The primary duty contained in the HVNL requires each party in the chain of responsibility to ensure, as far as is reasonably practicable, the safety of transport activities relating to a heavy vehicle.

It implies that at the very least an SMS should be maintained by businesses.

The requirements of the National Operating Standard will go some way towards: • e nsuring that the primary duty has been satisfied; as well ensuring • t hat where enforcement action is taken, the right supply chain participant – be it driver, consignor, loading manager, packer or anyone else - that was actually in the position to influence safety outcomes (but didn’t) is held to account.

These requirements are not unusual.

For example in NSW, registered: • p rime movers and articulated vehicles with a GVM or GCM of more than 13.9 tonnes and manufactured on or after 1 January 1991; • t rucks with a GVM or GCM (if travelling in combination) of more than 13.9 tonnes carrying dangerous goods and required to display signs.; and • c oaches used in the course of trade or business or for hire or reward 72 | MHD APRIL 2021

must have monitors recording: • l engths of time the vehicle is moving and stationary during a journey;.

• s peeds at which the vehicle is driven; • d istance the vehicle travels between stops; and • t he time, date and place of starting and finishing a journey, drivers’ details and vehicle identification.

Accredited operators of NSW buses must also: • d evelop and maintain a safety management system ; and • b e able to prove that capital is available to ensure the maintenance of vehicles.

NSW bus industry sources tell ALC that these measures have led to improvements in the management of bus safety relative to other classes of heavy vehicles, which appears to be supported by outcomes: Regular Passenger Services

Heavy Vehicles

Quarter1

83.4%

80.1%

Quarter 2

90.3%

81.1%

Quarter 3

90.6%

79.6%

Quarter 4

87.5%

79.6%

This would suggest that the ALC concept of a national operating standard, requiring operators to: • i dentify the entity operating a heavy vehicle(s) and the place(s) heavy vehicles are garaged with the National Heavy Vehicle Regulator (NHVR);

• m aintain a safety management system (SMS), meeting standards made by the NHVR; • p rove to the satisfaction of the NHVR that a nominated amount of capital is available to the business; and • r equire the mandatory collection of data, through the use of equipment compatible with standards made under the National Telematics Framework would be an appropriate inclusion into the HVNL. Some have tried to argue that this constitutes operator licensing.

It doesn’t.

The Australian Government Guide to Regulation describes licensing as a ‘pre-market assessment scheme’. As the table below shows, the national operating standard is no such scheme: What the National Operating Standard does do is to make clear to operators what is necessary to ensure the safe operation of vehicles in much the same way as an operator must comply with regulations prescribing the standards that vehicles must comply with, for use on a road or driving hours limits.

The creation of a National Operating Standard offers the opportunity to enhance the safety and productivity outcomes of heavy vehicle operators – key objectives of the HVNL. ALC believes these comparatively simple and affordable amendments to the national law, scaled appropriately to the size of the businesses, will set benchmark standards that lift safety and compliance. ■

National Operating Standard Can immediately commence to operate, so long

Operator Licensing Must prove to a regulator that all licensing

as compliance with the NOS can be demonstrated,

conditions are satisfied before being allowed

if called on.

to operate

No ‘fit and proper person’ requirement No registration fees

Usually a requirement that an operator is a ‘fit and proper person’ Usually an annual registration fee

SEPT 2021

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MHD FROM ASCI

R

ASCI REGISTRATION

egistration under ASCI’s Professional Accreditation Scheme offers an equitable, rigorous, evidence-based process

to be recognised for your career achievements for eligibility into either Associate or Practitioner Registration via four streams

(procurement, operations, logistics and integrated logistics support).

Congratulations to our most recent registrants:

Azraai Abi Musa RegAssocOps Registered Associate (Operations)

Andrew Barber RegPracILS Registered Practitioner (Integrated Logistics Support)

Mallaiyaraj Mahalingam RegAssocLog Registered Associate (Logistics)

Azraai has been recognised for his supply chain roles across the world (Europe, UK, Asia and Australia) working for British American Tobacco and for his tertiary accomplishments in engineering. Azraai is an ASCI NSW Chapter committee member.

Andrew has been working in the ILS space since 2012 when he joined the Department of Defence as a Logistics Graduate. Since then, he has worked in the Government, as well as Defence Industry across a range of projects.

Mallaiyaraj has been recognised for his career achievements working in Coles DCs and vocational education at TAFE.

Rebecca Presgrave RegPracProc Registered Practitioner (Procurement)

Sandra Mostertz-Florian RegPracLog Registered Practitioner (Logistics)

Walter Waerner RegAssocOps Registered Associate (Operations)

Rebecca has been recognised for her career achievements in delivering sustainable growth and operational effectiveness while working for prominent national and international brands within the FMCG sector. Rebecca is an ASCI Ethics committee member.

Sandra has been recognised for her career achievements in endto-end supply chain, with more than 15 years of experience, from planning & forecasting to inventory management and transport & distribution solutions.

Walter has been recognised for his career achievements working in supply chain roles for Energizer and his tertiary studies (MBA and Bsc).

74 | MHD APRIL 2021

MHD FROM ASCI

CONTINUED PROFESSIONAL DEVELOPMENT ASCI has announced a new Chapter in the Australian Capital Territory to deliver continued professional development to members in the region.

ASCI’s Continued Professional Development Program includes webinars, events, seminars, conferences, professional certifications and short courses that, when attended, satisfy the maintenance obligations of Registrants under the Professional Accreditation Scheme – the first Scheme of its kind for supply chain management in Australasia.

NEW LEADERSHIP ASCI has also announced the new leadership of its New South Wales Chapter, representing its largest membership community in the nation – including: • M ark Skrzypiec RegPracLog, NSW Chapter President • D uncan Wardle, NSW Chapter Vice President • A rushee Aggarwal, NSW Chapter Secretary According to ASCI President, Alexandra Riha RegPracOps, Mark, Duncan and Arushee are well equipped with the experience and dedication to take NSW members into the next phase of its strategic direction.

“Our NSW Members acknowledge their passion for supply chain management, their professional experience and the network they have developed over the years,” he says.

“On behalf of the ASCI Board, we congratulate and thank Mark, Duncan and Arushee for accepting their nomination and look forward to supporting them to drive the ASCI vision: advancing supply chain as a recognised profession.”

Mark Skrzypiec RegPracLog has been serving on the ASCI NSW Chapter, the ASCI2021 Conference Advisory Board and

Appointed in voluntary roles to lead the new ACT Chapter are: • G ary Pearce, ACT Chapter President • D aniel Harding, ACT Chapter Vice President Gary Pearce RegPracILS is a Registered Practitioner (Integrated Logistics Support) under the Professional Accreditation Scheme. He is a proficient and qualified Integrated Logistics Support (ILS) Manager with over 49 years’ experience working in various ADF (21 years), Public (12 years) and Private (16 years) sectors.

Daniel Harding has had over 30 years’ experience working in managerial roles in Manufacturing,

Operational Excellence & Supply Chain for a number of major organisations including Johnson & Johnson, MSD, AstraZeneca & Dairy Farmers. Four years ago Daniel joined Seeing Machines in Canberra and is currently the Supply Chain Director responsible for logistics & procurement.

ASCI’s ACT Chapter has commenced Meet & Greet online sessions on the last Thursday afternoon of each month for new members to meet the Chapter Committee.

ASCI President, Alexandra Riha RegPracOps, identified that there is a cohort of supply chain management experts in Canberra.

the Industry Risk Committee. He has 15 years’ experience driving operational excellence across supply chain and logistics operations in the B2C and B2B sectors. While at Novis, Mark led an ISO 9001 accreditation process. He successfully transformation De’Longhi’s supply chain. More recently, as head of Logistics for Miele, Mark established two greenfield distribution facilities while implementing new processes, including cloud-based digital applications to create a customer-centred, award-winning logistics function in full alignment with the organisation’s premium brand promise.

Duncan Wardle has been serving on the ASCI NSW Chapter and the ASCI2021 Conference Advisory Board.

He has more than 20 years’ experience across the FMCG, Pharmaceutical and Dairy industries in Australia, Europe and North America. Currently Site Leader with Bega, Duncan previously led GSK’s largest US manufacturing site and was Global Supply Chain Director when GSK’s consumer business transformed to become a full endto-end supply chain. Duncan has a passion for enabling change and building consumer-centric cultures.

Arushee Aggarwal has been serving

as Tertiary Ambassador for the ASCI NSW Chapter and was a regional finalist in the ASCM Case Competition in 2019.

She is a supply chain analyst for the Kraft Heinz Company and holds an MBA from Macquarie University in supply chain management.

ASCI Regional Chapter leadership tenure follows a two-year cycle. Stepping down from the President role is Brendan O’Keeffe who led the NSW Chapter through a growth phase, followed by a turbulent year during COVID-19 where the committee managed to keep members engaged via online webinars.

“Brendan’s passion for the supply chain community has always influenced others to join ASCI. He is a role model for our profession. The Board would like to thank Brendan for his consistent leadership and full support of the ASCI vision,” Alexandra says.

The NSW Chapter will also host ASCI’s Annual Conference ‘Supply Chain Vision In The Decade For Action’, taking place from 28 to 30 July at Western Sydney’s William Inglis Hotel, and the ASCI Award Celebration on the evening of the first conference day.

For more information contact enquiries@asci.org.au.

Join ASCI and take steps towards your professional career pathway in 2021.

Membership starts at $275 with concessions available upon evidence of your employment situation or membership to another association.

Visit: www.asci.org.au/Join

MHD APRIL 2021 | 75

MHD PRODUCT SHOWCASE

COMBILIFT’S NEW AISLE MASTER ORDER PICKER: AISLE MASTER-OP In a major innovation in the warehousing sector, Combilift has launched the latest Aisle Master-OP. Pioneering a stand-on electric powered model, it combines the advantages of a narrow aisle articulated forklift and an order picker for versatile operation in warehousing applications. The design allows an operator to exit from both sides and hop on and off quickly with its low-to-ground platform step.

“Customers already using the Aisle Master for space saving, storage, and efficiency in their warehouse, asked if we could redevelop the Aisle Master to meet their ever-growing demand for order picking customised orders,” says Combilift CEO Martin McVicar.

For more information, visit combilift.com

IMPROVING PICKING PRODUCTIVITY, ACCURACY, AND SAFETY WITH VISION PICKING FROM DEMATIC Dematic’s wearable vision picking technology features headsup-display (HUD) devices and projects information workers need right into their real-time field of view. This allows them to operate completely paperless and hands-free while carrying out order fulfilment tasks in the warehouse.

The technology provides similar benefits in warehousing to voice picking systems, including greatly improved picking accuracy. This reduces the number of human errors that occur during warehouse product picking. Vision picking technology provides operators with relevant information for the duration of each task, including an image display, which helps identify and pick the correct product every time.

For more information, visit www.realtimelogistics.com.au

OZKOR OFFERS RENTAL CHOICE IN PLASTIC PALLETS

QUICKTRON LEADS INTELLIGENT WAREHOUSE LOGISTICS REVOLUTION

Leading Australian materials handling equipment manufacture Ozkor now offers a plastic pallet rental service for companies looking for a more reliable and economical alternative.

The state-of-the-art AGV and AMR vehicles with a complete range of products for intelligent intralogistics solutions are based on proven Quicktron technology. These mobile robots include automated solutions for the handling of shelves, mobile devices, pallets and baskets of work without an operator. In suitable projects, this new product range will be combined with Ferag products (Denisort, Deniway, Easychain and Skyfall) into fully integrated solutions.

Designed to meet the high operational demands of automated warehouse systems and modern industrial demands, the new PPX-1165 plastic pallet model will safely handle a 1350 kg load in drive in racking. Manufactured with high impact resistant, food grade materials, this new pallet is designed for hard work in extreme conditions.

Incorporated in the body of the pallet, patented high impact resistant nylon inserts meet severe day-to-day handling challenges and high operational standards that wooden pallets cannot reach. At the same time, it provides a hygienic, long-term reliable service, at an economical daily rental rate.

For more information, visit www.plasticpallet.com.au

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For more information, contact Philip Batty at Ferag Australia on 0434 305 906, email info-australia@ferag.com or visit www.ferag.com/en/

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MHD PEOPLE ON THE MOVE

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PEOPLE ON THE MOVE A monthly wrap up of the latest appointments in the supply chain, materials handling and logistics industry.

NEW SENIOR CONSULTANT JOINS ARGON & CO

NEW CONSULTANT AT KÖRBER SUPPLY CHAIN SOFTWARE

TMX APPOINTS A NEW SENIOR CONSULTANT

John Brown will be joining Argon & Co as a Senior Consultant creating large scale innovative solutions within logistics and

Suman Shetty joins Körber Supply Chain Software as Implementation Consultant based in Sydney. Suman

Nationally recognised and accomplished consultant Matthew Shore will be joining TMX in Auckland as a Senior Consultant, enabling the business to

distribution, data analytics and digital supply chain transformation with leading consumer goods and retail organisations.

was previously a Senior Consultant at Manhattan Associates.

KÖRBER SUPPLY CHAIN APPOINTS GENERAL MANAGER

NEW LEADER FOR CBRE’S SOUTH AUSTRALIAN INDUSTRIAL & LOGISTICS BUSINESS

Industry expert Anthony Beavis will join Körber Supply Chain as General Manager ANZ based in Melbourne.

Anthony joins Körber from Honeywell where he was a part of the executive team for ANZ Voice Solutions.

CBRE has appointed Jordan Kies to lead its Industrial & Logistics (I&L) business in South Australia. Jordan is assuming the role from long-standing leader David Reid to allow him to fully focus on upper end I&L brokerage pursuits, working closely with CBRE colleague Jon Nitschke.

continue to deliver world class supply chain transformations for its customers.

UTENANT NEW HEAD OF PRODUCT AND TECHNOLOGY James Kerr will be responsible for leading the development of uTenant’s tech capabilities – including the design and build of the entire process, acquiring and integrating the matching technology and ensuring that usability and function are prioritised.

Do you have career news to share? Email Edward Cranswick at Edward.Cranswick@primecreative.com.au to be featured.

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• Tray Sortation • Pocket Sortation • Transport Conveyors Print Machinery

Consumables

• AGV / AMR Sortation • Goods to Person • Automatic & Manual Boxing Lines • Automatic & Manual Poly Bagging Lines

Intralogistics / Materials Handling

• Robotic Palletising Systems • De Palletising Systems • And other associated equipment

www.ferag.com/australia

info-Australia@ferag.com