MHD Jun 2020

JUNE 2020

AUSTRALIA’S APPETITE FOR ONLINE FASHION RETAIL

How Brand Collective fulfils nearly 4,000 orders a day

TRANSLATING DATA INTO DECISIONS Has just-in-time logistics reached its expiry date?

COVER STORY

COHESIO GROUP (KÖRBER) UNVEILS NEW AMR SORTATION SOLUTION

Just Launched Körber AutoSort Mobile

Körber AutoSort Mobile

Get to know the new AMR Sorter.

Maximise your operational capabilities through flexible, affordable and scalable automation.

Körber AutoSort Mobile allows dynamic sortation, taking the shortest and most direct path.

Now you can free up space in your DC and reduce your investment in traditional and fixed automation. Instead, choose the independence and scalability of Körber AutoSort Mobile table-top AMRs.

Diverse sortation Expedite the sortation for parcels, eCommerce, wholesale and store replenishments on table-top as well as mezzanine levels with Körber AutoSort Mobile.

Best-in-class capabilities Cohesio Group, a Körber Supply Chain company leads the AMR success record in Australia and New Zealand, offering best-in-class AMR capabilities, DC workflow knowledge and a bespoke support structure.

Cohesio Group will soon become Körber. Learn more at cohesiogroup.com

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 Editor: Melanie Stark Journalist: Brittany Coles Business Development Manager: Bowie Phillips Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Kerry Pert, Madeline McCarty Client Success Manager: Janine Clements

FOR ADVERTISING OPTIONS Contact: Bowie Phillips bowie.phillips@primecreative.com.au

SUBSCRIBE Australian Subscription Rates (inc GST) 1yr (6 issues) for $78.00 2yrs (12 issues) for $120.00 – Saving 20% 3yrs (18 issues) for $157.50 – Saving 30% To subscribe and to view other overseas rates visit: www.tandlnews.com.au or Email: subscriptions@primecreative.com.au

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.

FUELLING THE E-COMMERCE BOOM

A

s a nation, we have become more comfortable with using the internet for a variety of activities that we never explored before. From a check-up at the doctors, to catching up with friends and family, to live-streaming a concert, or joining a yoga class, Australia’s appetite for engaging in the virtual world is at an all-time high.

We are continuing as a collective to combat the spread of COVID-19 by staying at home. With this shift, many have taken to retail therapy to lift the spirits.

Australia Post reported its busiest day on record the Tuesday following the Easter weekend. More parcels moved through the nation’s postal network than ever before.

With this increase in contactless shopping, comes a huge task for the logistics and supply chain industry.

Australia Post saw an increase in online traffic referrals of 62 per cent in April according to SimilarWeb data. Similarly, logistics provider Shippit experienced a 267 per cent rise and shipping giant DHL 90 per cent increase.

What was initially a panic buying frenzy has now settled into a new trend for Australian shoppers. Ben Franzi, General Manager Parcel & Express Services at Australia Post says Australia’s e-commerce growth rate has jumped ahead two years in four weeks, jumping from 11.5 per cent of total retail expenditure to 15 per cent.

For many retailers, this has been an opportunity to showcase the e-commerce capabilities they already had in place. Communicating with customers, meeting delivery windows, and in some cases, managing to achieve next-day delivery promises.

However, as the orders started to pile in, some retailers struggled to keep up. They were yet to introduce the technology and infrastructure needed to deliver on their e-commerce commitments.

For many consumers, this has been the first taste of online shopping. For the retailers that had the capabilities to deliver an excellent online shopping experience, this was a golden opportunity. For the ones who weren’t ready, it was an opportunity missed.

In this edition of MHD we explore the logistics and warehouse operations that underpin this shopping boom. We discover the latest developments in warehouse management software, automation, storage, data, facility design and more.

If retailers want to make the most of this revolution in consumer habits, they need to turn to their logistics and supply chain operations and make sure they are e-commerce ready in order to meet the spikes in consumer demand to come.

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.

Melanie Stark Editor melanie.stark@primecreative.com.au

MHD Supply Chain

MHD JUNE 2020 | 3

JUNE 2020

ISSUE #5 VOLUME 50

THIS ISSUE COVER STORY

20 Cohesio Group (Körber) launches new

sorting AMR solution

E-COMMERCE 16 COVID-19 drives e-commerce revolution

TECHNOLOGY 14 Ahead in the cloud

20

COVER STORY

24 Mailroom to global warehouse automation boom 44 Data at the heart of automation 48 The rising trend of touch-screen mobility

MATERIALS HANDLING 28 Filling the gaps with automation 38 Following the leader

WAREHOUSING 46 The changing face of warehouses 54 Data-savvy delivery JUNE 2020

AUSTRALIA’S APPETITE FOR ONLINE FASHION RETAIL

How Brand Collective fulfils nearly 4,000 orders a day

TRANSLATING DATA INTO DECISIONS Has just in time logistics reached its expiry date?

SUPPLY CHAIN

40

30 Digitising the healthcare supply chain 34 Logistics revolution 50 Keeping your head above water 52 Masters of orchestration

COVER STORY

COHESIO GROUP (KÖRBER) UNVEILS NEW AMR SORTATION SOLUTION

DEPARTMENTS AND REGULARS 06 News 56 Women in industry 58 Property focus 60 The last word 62 ALC

ON THE COVER

65 ASCI

In an MHD exclusive, we catch up with Nishan Wijemanne, CEO at Cohesio Group (Körber) to find out about the latest additions to the leading tech provider’s portfolio.

28 MHD JUNE 2020 | 5

MHD NEWS

Gartner 2020 Magic Quadrant for WMS leaders announced

G

artner’s 2020 Magic Quadrant for Warehouse Management Systems (WMS) report has revealed the top supply chain technology providers in the market, including Manhattan, Blue Yonder, Körber, and Microlistics.

Körber (formerly HighJump), Manhattan Associates, Blue Yonder (formerly JDA), Oracle, SAP, and Infor were the six vendors in the leader’s quadrant for WMS. Companies in the Gartner Magic Quadrant for Warehouse Management Systems are evaluated on their completeness of vision and ability to execute to it.

To determine this year’s Magic Quadrant Leaders, Gartner analysts evaluated vendor’s offering capabilities such as receiving, put-away, stock locating, inventory management, cycle counting, task interleaving, wave planning, order allocation, order picking, replenishment, packing, shipping, mobility, labour management and automated materials handling equipment (MHE) interfaces and more.

“Leaders in the WMS market are present in a high percentage of new WMS deals, they win a significant number of them and they have a large and growing customer base,” Gartner executives stated in the report. “Leaders must anticipate where customer demands, markets and technology are moving, and must have strategies to support these emerging requirements ahead of actual customer demand.”

Manhattan Associates Manhattan Associates is now a 12-time leader in the Gartner’s Magic Quadrant for Warehouse Management Systems.

“Manhattan Associates is proud to have been named a Leader in Gartner’s 2020 Magic Quadrant for Warehouse Management Systems for the twelfth consecutive time,” Raghav Sibal, Managing Director, ANZ, at Manhattan Associates said.

“Supply chains are more important than ever as the world continues to 6 | MHD JUNE 2020

struggle with the effects of COVID-19, our ability to execute and provide completeness of vision is unmatched.”

Raghav said the company believes that means no matter what challenges supply chains face, Manhattan can help deliver in these critical times.

“Never in our history has Manhattan had more innovation momentum in WMS than we do today,” he said.

“Thanks to our customers, we’re fortunate to have the opportunity to innovate alongside some of the most forwardthinking supply chain professionals in the world.”.

Blue Yonder Blue Yonder has also been named a Leader in every Gartner Magic Quadrant for Warehouse Management Systems for consecutive years since 2012.

“We’re gratified to be rated a leader once again in the Magic Quadrant for WMS. We believe this position is an important proof point of the value we create for our customers as they seek to build out modern and cost-efficient logistics network,” Mark A. Stanton, Sr. Director, Analyst Relations at Blue Yonder said.

Körber “We believe this marks the transition of HighJump along with 11 supply chain technology solution providers to come together as one – Körber. For Körber, our placement in the Leaders quadrant in the 2020 Magic Quadrant for WMS is a testament to what’s possible by uniting 12 of the top global solution providers under a single brand,” Chad Collins, Chief Executive Officer for Körber Supply Chain Software said.

“Building on an unmatched depth of technologies and experience – we’re reaching more customers than ever before – no matter the challenge, the industry or where your company calls home.”

Körber said the recognition exemplifies the possibilities of its diverse range of solutions and expertise to empower companies worldwide to turn today’s supply chain pressures into a strategic differentiator.

Microlistics Microlistics has been recognised for the fifth consecutive year running.

“We’re proud to be named yet again in this year’s Magic Quadrant for WMS, as assessed by the world’s leading analysts for WMS capability,” Mark Dawson, Founder & Managing Director of Microlistics said.

“Right now, supply chains are under unprecedented pressure from global events, and we are pleased to offer a leading WMS which is technically flexible and robust, with an ambitious product roadmap providing our customers confidence into the future.”

To those who keep supply chains moving…

THANK YOU. In trying times heroes emerge.

They’ve always been there, but everyone sees them now. Truck drivers, warehouse workers, shelf stockers and pharmacists. We salute the countless companies and individuals that are going above and beyond to move life and commerce forward. They sustain us in an upside-down world.

Supply chains are armed with technology, but they are powered by heroes.

Visit manh.com.au or contact us at anzinfo@manh.com or (02) 9454 5400.

MANHATTAN ACTIVE

®

SUPPLY CHAIN MANHATTAN ACTIVE

®

OMNI

MANHATTAN ACTIVE

®

INVENTORY

MHD NEWS

7-Eleven Australia to ramp up its supply chain with daily deliveries

L

eading retailer 7-Eleven Australia will partner with Emergent Cold to rapidly scale and expand its delivery network. The new partnership will see 7-Eleven stores take daily deliveries of ambient and frozen foods as opposed to its previous frequency of weekly deliveries.

According to 7-Eleven CEO, Angus McKay, the need for a supply chain that can rapidly scale and expand based on network growth and 7-Eleven’s continually evolving offer was a key criterion for this strategic initiative.

“We’ve been working on this project for three years. The new supply chain ecosystem will help our stores to make sure they have what their customers need when they need it. One delivery per day, instead of once a week for ambient and frozen products, will help our franchisees to better manage inventory control and cash-flow. It also has operational benefits as store team members are not having to manage huge delivery volumes at once, or daily multi temperature single vehicle deliveries,” Angus said.

In what is believed to be an Australian first, the key to delivering on this

7-Eleven Australia has partnered with Emergent Cold to expand its delivery network. strategic initiative was the design and build of assets capable of delivering chilled and ambient products in the same delivery on the same truck. At peak, about 70 of these trucks will deliver some 4.5

million product units weekly to 7-Eleven stores. On daily basis this includes 4,000 sandwiches, 6,000 packs of sushi, 8,000 meat pies, 16,000 sausage rolls and 30,000 cartons of milk.

$125m Port of Melbourne rail project on track

T

he $125 million Port of Melbourne’s Port Rail Transformation Project (PRTP) is set to go ahead and take effect on June 1 this year.

The multi-million-dollar initiative will involve significant rail infrastructure works and a new rail operating framework inside the port that will provide an alternative to moving containers by trucks.

The project’s preconditions have been completed, it’s being funded through an increase in the tariff of $9.75 per twenty-foot equivalent unit (TEU) on full import containers, to take

8 | MHD JUNE 2020

effect June 1, 2020.

Brendan Bourke, Chief Executive Officer, Port of Melbourne, said the PRTP is a vital project for port users and the broader economy.

“A rail solution for the port will play a vital role in Victoria’s postCOVID economic recovery with a large construction project supporting jobs as well as supporting the more efficient movement of freight and contributing to a more productive supply chain for decades to come,” he said.

“The Port of Melbourne has listened to industry feedback and is responding with a solution that meets the need for

increased transparency in rail access arrangements, improved port access and greater capacity.”

He said the project embraces these principles and supports the Government’s Port Rail Shuttle Network.

Sal Milici, FTA Head of Border and Biosecurity, said increased rail utilisation is necessary to meet the long term forecasted trade growth.

“We applaud the initiative being driven by the Port of Melbourne which will ultimately facilitate the expansion and incentivisation for commercial interests to invest in metropolitan intermodals,” he said.

MHD NEWS

Coles to open new high-tech metropolitan fulfilment centres Coles is set to open two new fulfilment centres to meet growing customer demand for online shopping.

C

oles group will open two new high-tech Customer Fulfilment Centres in Sydney and Melbourne in 2022.

The facilities will be utilised as highly automated Customer Fulfilment Centres (CFCs) for Coles Online, significantly increasing Coles’ capacity to meet growing customer demand for online food and grocery shopping.

The new Coles CFC’s are in partnership with UK-based Ocado Group plc, to bring the world’s leading online grocery platform, automated single-pick fulfilment technology and home delivery solution to Australia.

Last year Coles announced its partnership with Ocado, joining major international grocery retailers including Kroger in the US, Sobeys in Canada, Morrisons in the UK, Groupe Casino in France and Aeon in Japan in partnering with the tech giant to implement their end-to-end online shopping solution.

“A key element of the Ocado model is the company’s highly automated CFCs, which will enable Coles to provide customers with greater range and improved product availability while significantly increasing capacity to service online customers,” Coles Group said in a statement.

10 | MHD JUNE 2020

The Melbourne Coles facility, comprising of 30,000sqm, is located within the Midwest Logistics Hub, a 58-hectare estate on Dohertys Road, Truganina.

Coles will join Toll for their Mars Group contract and Uniqlo as long-term tenants at the Midwest Logistics Hub, that is already under construction.

In Sydney, also set to be 30,000sqm facility, the new distribution centre will be located at Horsley Drive in Wetherill Park and will anchor a 14-hectare estate being developed by Charter Hall.

Ocado will be responsible for the installation and ongoing maintenance of automation equipment in the CFCs. Steven Cain, Coles CEO, said Ocado’s online fulfilment solution, which also includes new website technology for Coles Online and Ocado’s delivery management technology to maximise transport efficiency, would transform the Coles Online experience for customers while also reducing waste and improving safety for team members.

“Ocado has been a world leader in online fulfilment for more than a decade, and through our exclusive Australian partnership we will use their proven technology to offer customers more products than ever

before, delivered at a time to suit them, while building capacity to service the growing demand for online food and grocery shopping,” he said.

Thinus Keeve, Coles Chief Property Officer, said these two Customer Fulfilment Centres will enable Coles Online to offer greater range and availability, from locations that allow the supermarket giant to deliver to customers across metropolitan Sydney and Melbourne.

Luke Jensen, CEO of Ocado Solutions, said securing the development sites was an extremely exciting moment for the Coles-Ocado partnership, following the recent opening of Ocado’s first international CFCs for partners in France and Canada.

“Ocado’s technology has revolutionised the way in which grocery shopping is done online,” he said.

“When these two Coles CFCs go live and begin to ramp up, they will be instrumental in delivering unrivalled online grocery experiences to Coles customers in Victoria and New South Wales. They will also create exciting job opportunities for engineers looking to work with some of the most cutting-edge robotics and automation technology in the world.”

Introducing the Smartest Small Parts Robotic Sortation System Available in the World Improve your warehouse efficiency with OPEX® Corporation’s Sure Sort™ High-speed Automated Sorting Technology

Delivered to You by: Dexion Intralogistics—Providing Industry Leading Logistical Warehousing Solutions Contact Glen or Kris on: 02 9600 8443 | info@dexionis.com.au www.warehouseautomation.com/sure-sort/

MHD NEWS

Positive outlook for industrial market despite COVID-19 uncertainty 2020 was expected to be a record year for demand.

I

ndustrial occupier and investment markets remain well placed to ride out uncertainty caused by COVID19, despite comparisons being drawn to the 2008 global financial crisis.

The Colliers International Industrial Research and Forecast Report for H1 2020 found that unlike the GFC, where rents contracted between 9 per cent and 25 per cent in the prime market and 15 per cent and 25 per cent in the secondary market, the recent growth in demand for transport and logistics and its key role in keeping necessities of Australians in supply is underpinning the sector.

“As a result of the COVID-19 pandemic, there are going to be tenant casualties who are unable to trade through this period and there will others who experience a significant pick-up in business revenue,” Malcom Tyson, Managing Director, Industrial at Colliers International said.

“Tenant covenants will be increasingly scrutinised going forward and length of WALE will never be more important as the flight to quality thematic plays out.”

“While certain locations may see a fall in rents and a rise in incentives, we do not expect it to be to the same extent as we saw in the GFC. Likewise, we do 12 | MHD JUNE 2020

not expect yields to blow out by 150 basis points as they did in the GFC.” “While there may be some softening of yields for secondary assets as risk becomes priced in, core assets with strong businesses within will remain highly sought after by both domestic and global capital and yields will remain firm.”

“The fundamentals for industrial and logistics property remain sound over the long term and as a result the sector is expected to be less impacted than others through this period,” Luke Crawford, Associate Director, Research said.

“With the exception of population growth which will take a hit in the short term as net overseas migration drops significantly off the back of border closures, the other key drivers of infrastructure investment and growth in e-commerce will continue to remain strong in the current environment.”

“The value of e-commerce has increased exponentially as a result of COVID-19 and the take-up of online retail will gain market share on brickand-mortar retail sales, as consumers are forced to buy online and others who have never used online platforms will become comfortable with this form of shopping.”

“Highlighting the persistent demand

for online retail goods due to global lockdown restrictions, Amazon in the US have hired 100,000 employees to cater towards its spike in demand for e-commerce goods. In Australia, we have seen retailers shift some of their staff to online fulfilment as they try to keep up with demand. “ Colliers’ reported that investment volumes have weakened over the first quarter of 2020, with investment activity in the quarter being at its lowest level since 2010. The weaker activity is the result of several institutions and corporates holding off on their divestment mandates as they wait to see the impact on headline investment metrics such as cap rates, IRRs and value per square metre rates.

“In spite of uncertainty, there remains substantial levels of capital seeking to expand within the Australian logistics sector, with private investors recently becoming more active, particularly across the East Coast Capital cities,” said Gavin Bishop, National Director, Industrial at Colliers International According to Colliers Industrial Research and Forecast report, 2020 was expected to be a record year in terms of demand. In 2019, approximately 3.8 million sqm of industrial space was leased (1,000sqm+), representing the second highest annual total on record.

“While enquiry levels remain healthy in most markets, demand has shifted towards defensive occupiers including food and beverage retailers, e-commerce groups (including fast moving consumer goods), transport and logistics providers, data centres and cold storage occupiers,” Malcom Tyson said.

“Other businesses who were previously in the market for new or expansionary space have since placed these decisions on hold as they determine the impacts of COVID-19 on their business.”

MHD NEWS

Free trade deal with Indonesia set to commence in July

T

he Indonesian Government has officially ratified the IndonesiaAustralia Comprehensive Economic Partnership Agreement (IA-CEPA).

On Wednesday May 6, Australia received formal notification that Indonesia has completed its domestic ratification processes.

Australian exporters will soon start reaping the benefits of the IA-CEPA. IA-CEPA will officially enter into force on Sunday 5 July 2020. It will mean that 99 per cent of Australian goods (by value) will enter Indonesia duty-free or under significantly improved preferential arrangements.

Simon Birmingham, Federal trade minister said the landmark trade deal with Indonesia would enhance export opportunities and deliver significant

benefits for Australian farmers, businesses and investors.

“Securing a trade agreement with Indonesia has been a longstanding objective of our government, to further strengthen the strategic partnership between our nations and further expand the choices available for Australian exporters,” he said.

“This is the most comprehensive bilateral trade agreement Indonesia has ever signed, and will give a competitive edge to Australian exporters, particularly at a time when many are doing it tough as a result of the COVID-19 crisis.”

Simon said the economic stresses being caused by COVID-19 in both Australia and Indonesia make this agreement even more important, as it will provide an opportunity to better

stimulate growth and investment across both nations during the recovery phase.

“With a population of over 260 million and one of the fastest growing economies in the world, Indonesia presents significant trade and investment opportunities for Australian farmers and businesses,” the Federal trade minister said.

Under the deal, producers of grains, live cattle and meat, dairy and horticulture, and many other products will benefit from lower tariffs and improved access to Indonesian markets.

Simon said, with one in five jobs trade related, enhancing export opportunities for Australian farmers and businesses will be “crucial to reducing job losses arising from the COVID-19 crisis and a critical part of our ultimate economic recovery”.

You want your customers to get the right order at the right time - every time.

Dematic’s Robotic Piece Picking Module is the revolutionary system that selects, grips, lifts, and places individual items of varying sizes and shapes at the last stage of the fulfilment chain.

Combining advanced Artificial Intelligence (AI), collaborative and mobile capabilities, Dematic’s robotic solutions are ready to keep your operation at peak performance.

With robotic picking, you will increase efficiency and accuracy today, and be well positioned for the demands and advancements of tomorrow.

Visit dematic.com.au/robotic-systems to download our Journey to Lights Out white paper, or get in touch to learn more.

Ask us.

02 9486 5555 info.anz@dematic.com www.dematic.com.au/robotic-systems

THE ROBOTS ARE READY.

We Optimise Your Supply Chain

MHD TECHNOLOGY

Manhattan has pioneered the use of many advanced technologies that improve workflow.

AHEAD IN THE CLOUD Manhattan Associates is leading the world’s first cloud-native enterprise-class Warehouse Management System and has been recognised in Gartner Inc.’s 2020 Magic Quadrant for WMS.

R

aghav Sibal, Managing Director, ANZ, at Manhattan Associates says never in its history has Manhattan had more innovation momentum than today.

Manhattan Associates in Australia and New Zealand has recently launched the world’s first cloudnative enterprise-class Warehouse Management System (WMS), the software unifys every aspect of distribution and never needs upgrading.

The new system has been praised for faster speed, adaptability and ease of use within distribution management.

ADVANCING WAREHOUSE MANAGEMENT TECHNOLOGY “Keeping up with today’s rapidly changing marketplace by upgrading warehouse management technology can be challenging given the depth and uniqueness of each WMS implementation,” Brian Kinsella, 14 | MHD JUNE 2020

Manhattan’s Senior Vice President of Product Management says.

Throughout its nearly 30-year history, Manhattan Associates has pioneered the use of many advanced technologies that improve the flow of products and information between manufacturers, wholesalers and retailers.

“Years ago, Manhattan identified this market need and set out to completely redesign a solution with flexibility and agility at its core. We rebuilt the industry’s leading WMS to create the last WMS you will ever have to buy.”

Composed of microservices, Manhattan Active WM is truly cloudnative. In addition to delivering a step change in accelerating the speed of innovation, this new application architecture provides an almost limitless ability to automatically scale up to meet fluctuations in demand.

The software is also designed to be easily extended at the data, services

and UI level to meet the unique needs of each business. To speed time to market and reduce training, Manhattan has also incorporated new configuration wizards to help businesses of all sizes and complexities streamline the implementation process.

Manhattan Active WM will give organisations a distribution solution that adapts quickly to their customers’ needs, with frequent and easy access to the latest technologies and new features. This world’s first solution takes care of all of the system and software maintenance, allowing organisations to focus all their energies on serving their customers.

CONSECUTIVE LEADER IN GARTNER’S MAGIC QUADRANT FOR WMS Manhattan Associates has been named a Leader in Gartner Inc.’s 2020 Magic Quadrant for Warehouse Management Systems (WMS).

MHD TECHNOLOGY Measured on both completeness of vision and ability to execute, Manhattan Associates is proud to have been positioned the highest for ability to execute and the most advanced company in the visionary quadrant.

“Manhattan Associates is proud to have been named a Leader in Gartner’s 2020 Magic Quadrant for Warehouse Management Systems for the twelfth consecutive time,” Raghav Sibal, Managing Director, ANZ, at Manhattan Associates says.

Supply chains are more important than ever as the world continues to struggle with the effects of COVID-19. Raghav says the company’s ability to execute and provide completeness of vision is unmatched. “We believe that means no matter what challenges supply chains face, we can help deliver in these critical times,” he says.

“Thanks to our customers, we’re fortunate to have the opportunity to innovate alongside some of the most forward-thinking supply chain professionals in the world.

This close collaboration helps us bring to life technologies like next-generation automation, machine learning, modern mobility and IoT.” In the 1990s, the company developed the first purpose-built retail store replenishment solution and was the first to productise advanced 3D order cartonisation capabilities.

Most recently, it introduced Order Streaming technology, an AI-driven fulfilment workflow and task optimisation engine, that enables simultaneous wave and

Manhattan offers organisations a distribution solution that adapts quickly to their needs.

“

Keeping up with today’s rapidly changing marketplace by upgrading warehouse management technology can be challenging given the depth and uniqueness of each WMS implementation.

”

waveless fulfillment so that companies can process pallets and parcels with equal agility.

In its 2020 Magic Quadrant for WMS report, Gartner highlighted how Manhattan Associates has, and continues to be, a thought leader and innovator in the warehousing and omni-channel markets.

“Manhattan Solutions is committed to ongoing innovation in the warehouse and supply chain sectors. The needs of customers are constantly evolving to meet consumer demand, and our solutions will adapt and lead the sector for many years to come, supporting Australian warehouse and supply chain professionals to achieve the highest levels of output,” Raghav says.

UNIFYING SUPPLY CHAINS Increased expectations for fulfillment speed and volume are driving organisations to better understand and engage their workforce to differentiate and excel. Manhattan has a focus on providing a more individual and rewarding work experience with warehouse labour management.

The company developed Manhattan Active WM based upon gamification theory and behavioural sciences. The result is a solution that helps improve employee productivity and satisfaction and reduces turnover.

Manhattan Associates believes it’s at the forefront of integrating machine learning.

With Manhattan Active WM, all functions, including labour management and slotting optimisation, have been streamlined and re-engineered to create a single, unified distribution application.

Manhattan Active Warehouse Management uses machine learning to orchestrate DC automation and the human workforce to optimise the execution of work within the four walls of the DC. The solution’s embedded warehouse execution system (WES) also coordinates the work between any combination of automation, robotics and labor, and the Manhattan Automation Network provides pre-certified integration to the industry’s most innovative DC robotics providers.

“I can’t remember the last time I was so excited following a new product launch briefing,” Steve Banker, Vice President of Supply Chain Management for ARC Advisory Group says.

“The new cloud architecture, new user interface and significant advancements in optimization and employee engagement are wonderful. Any one of these improvements would have been impressive. Incorporating all of these enhancements in the new release is astonishing for a product of this scope.” ■ MHD JUNE 2020 | 15

MHD E-COMMERCE

COVID-19 DRIVES AN E-COMMERCE REVOLUTION Australia Post reported its busiest day in history due to a record breaking boom in online consumers. Ben Franzi, General Manager, Parcel & Express Services at the organisation accounts how this is a transformational time for the nation’s post and parcel service.

M

illions of people around the world are being encouraged to stay home in an attempt to flatten the curve of infection from COVID-19.

In Australia, many people are also being encouraged to work from home. This rapid change in routine has led to a significant change in consumer behaviour.

Following the stay-home directive, people are forced to use the internet to connect with loved ones, participate in gym classes, or even see a doctor via an online video conferencing service.

Another change in behaviour during COVID-19 is in people’s shopping habits. Across Australia, there has been a huge increase in online shopping as people take to retail therapy during the coronavirus lockdown.

This trend can be seen across the world, with Italy also reporting an 81 per cent increase in e-commerce transactions since the end of February, estimates by McKinsey & Co reveals.

The UK, France and the US have also reported similar increases. Ben Franzi, General Manager, Parcel & Express Services at Australia Post says Australia is very much on the same upward trend.

“Comparing April this year to last year, the growth rate we’ve seen is between 60 and 80 per cent. We’re seeing almost close to a million additional shoppers on a regular basis,” he says.

Traditionally April is a quiet time of year for e-commerce. After the peak spending across Christmas and new year sales, shoppers tend to tighten the purse strings before starting to hit the

16 | MHD JUNE 2020

shops again around Mother’s Day. However, the growth that Australia Post has seen throughout April 2020 is even larger than previous peaks around Cyber Monday, Black Friday and the lead up to Christmas.

“Even looking at the figures against Cyber Monday last year, there is more shoppers in this market. We’re seeing new consumers who have never shopped online before now shopping in a big way,” Ben says.

The Tuesday after the Easter long weekend was declared as Australia Post’s busiest day on record. While the volume is variable week to week, Ben says it’s somewhere between two and five per cent increase on Australia Post’s busiest days in the Christmas shopping period last year.

When Australia went into Stage Three lockdown at the end of March, there was an initial increase in panic buying, items like household goods, wine, puzzles, children’s toys. However, Ben says this volume is yet to normalise.

“It’s massive growth and it happened almost overnight,” he says.

“The panic buying hasn’t really dropped away. We’re consistently seeing growth rates of 60 per cent as people start to settle into a new norm.

I would suggest that the panic buying is over and what we’re seeing Is a new trend in buying online.”

Before COVID-19 transformed Australia’s shopping habits, the country was slightly behind some other European markets when it came to the percentage of retail spend online. In the UK for example, e-commerce accounted for 16.5 per cent of business turnover in 2017.

According to Ben, pre COVID-19, Australia’s e-commerce spend was around the 11 to 11.5 per cent mark of total retail expenditure.

However, while it may be too early to make accurate assumptions, Ben is predicting that as we come out of this period the figure will be more like 15 per cent.

“The growth may soften for a little

The recent growth that Australia Post has seen across its network is more significant than previous peaks around Christmas, Black Friday and Cyber Monday.

MHD E-COMMERCE bit, but I think the next 11 months we will be looking at growth rates of around 30 to 50 per cent compared with the same time last year,” Ben says.

When comparing these statistics to Australia Post’s predictions and forecasts, Ben says the rate of uptake in e-commerce has been bought forward two years in four weeks.

“We were predicting by 2025, we might reach 16-18 per cent, with a gradual growth rate of eight to 12 per cent year on year increase to get there. We’ve now jumped forward and in four weeks we’ve managed to bring the e-commerce market share rate forward a couple of years,” he says.

TWO TRENDS With physical stores having to adapt their models due to COVID-19 restrictions, Ben says both the small retailers and larger players had a lot of work to do.

“The small high street trader had to launch its online offering almost overnight. Some hadn’t operated in this space at all but going forward online retail was the only way they could continue to reach customers,” he says.

Furthermore, the larger retailers had to ramp up their current e-commerce offerings

“

We were predicting by 2025, we might reach 16-18 per cent, with a gradual growth rate of eight to 12 per cent year on year increase to get there. We’ve now jumped forward and in four weeks we’ve managed to bring the e-commerce market share rate forward a couple of years.

”

to meet increased demand. “Organisations like Kmart, Target, Myer have seen massive growth upwards of 200 to 400 per cent, so they have really had to accelerate their capacity in this area,” Ben says.

He says this change in model has also been adopted by cafes and restaurants to ensure that they can still operate a profitable business.

He cites the example of Attica, one of Australia’s most acclaimed fine-dining restaurants, offering a take-away menu.

“So many businesses have had to shake things up in order to keep their business profitable as well as to keep people employed.”

THE NEW NORM For Ben, some of these changes in behaviour are here to stay. “It’s suggested that it takes six to eight weeks to settle a consumer trend. I think for many people post COVID19, the items they have been buying online for the past few weeks they will continue to shop online for.”

It is also doubtful that a return to a normal working environment will take place this year. “I think we’ll find that the work from home scenario has worked well for many

MHD JUNE 2020 | 17

MHD E-COMMERCE

Traditionally April is a quiet time for online retail, but this year spending is at a record high. companies so there will continue to be a higher percentage of people working from home. Especially if social distancing remains in place for the next six to 12 months,” Ben says.

As the trend shifts towards e-commerce, one thing that will change is retail footprint. This has already been seen across organisations like Kmart as they start to use retail space to fulfil online orders.

“The rents and the ability to afford them as we see a continued push to online may change the way retailers operate in the future,” Ben says.

A further shift Ben sees on the horizon is an increased demand for same day delivery, and to be able to deliver on this promise organisations will need to hold more stock locally.

“We might see retailers convert physical stores or set up a 3PL operation in Melbourne, Sydney and Brisbane to meet consumer demand in these populated areas,” he says.

Many of the changes that Australia 18 | MHD JUNE 2020

Post has implemented to meet the increased demand are here to stay, Ben says.

“The additional facilities and processing arrangements we have implemented to deal with demand are here to stay as we move towards traditional peak period. We are working on a big facility in Melbourne and this will go live before Christmas. The additional labour force we have deployed to deal with the demand increase will also be here to stay,” he says.

However, some changes to the Australia Post service such as contactless delivery, and shift patterns to ensure social distancing may be reversed once social distancing is no longer a requirement.

A BRIGHT FUTURE FOR E-COMMERCE? When Australian shoppers first started to buy online during COVID-19, there was a shift away from fast fashion. A category that ordinarily makes up more

than 30 per cent of e-commerce spend.

However, recent data has revealed that spend across the fashion industry has increased. According to Ben, this is positive news for the e-commerce sector as a whole.

Ordinarily a large percentage of online shoppers are in the under 25 group, however with the casual and part time labour force being hit the hardest. There has been a shift in the core demographic who are now shopping online.

For Ben, this is also positive news.

“You have to imagine that the under 25s are constricting their spend, but this has been more than offset by a whole new generation who are probably much older who are buying online for the first time,” he says.

When the economy returns, postrecession, if the younger generation return to online spending, combined with the older generation who are now happy to shop online. The e-commerce industry will see another acceleration, Ben says. ■

More throughput.

Better output.

OUR AWA RD -WINNING ROB OTI C TEC HN OLO GY PROVI DE S

Versatile and scalable solutions that manage unexpected demand fluctuations without increasing space requirements or labour.

PERFEC T PI CK® G O O DS-TO - PERSO N PI CK IN G SYSTEM SURE SO RT ™ AUTO MATED SO RTIN G SYSTEM WAREH OUSE AUTO MATI O N .CO M | WA _ APAC@ O PE X .CO M

MHD COVER STORY

COHESIO GROUP (KÖRBER) LAUNCHES NEW SORTING AMR SOLUTION MHD sits down with Nishan Wijemanne, CEO at Cohesio Group (Körber) to find out how the technology solutions provider is ready to transform warehousing and logistics operations with an increased AMR portfolio.

C

ohesio Group (Körber) keeps a keen eye on all developments around technology, automation and innovation. According to Nishan Wijemanne, CEO at the company, he has been looking for opportunities to broaden Cohesio Group’s portfolio for a while.

“We work very closely with our

For Locus Robotics, this partnership gives the AMR provider access to a new market.

20 | MHD JUNE 2020

clients and therefore understand that there is a very eager interest in automation. This interest has been exasperated by the huge uptake in e-commerce we have seen since COVID-19. We want to make sure we offer our customers diversity and versatility in our AMR solutions and so have made the decision to significantly broaden our offering in this space,” Nishan says.

The past few months have been busy for Cohesio Group. After being acquired

by Körber in September last year, the company announced in April this year that it would join 11 other sister companies and become Körber Supply Chain, as part of a global rebrand. This is a strategic move that Nishan says will help accelerate Cohesio Group through its next phases of growth.

Cohesio’s ethos is to continue to create and deliver tailored supply chain solutions so that its customers can transform their warehouse operations to meet increased demand and service level expectations. This philosophy is what drives Nishan to continue to look for new products and opportunities that will help Cohesio’s customers continue to keep up in the challenging world of e-commerce.

A NEW SORTING AMR SOLUTION The first product that Nishan is proud to add to Cohesio’s AMR portfolio, is the new Körber AutoSort Mobile solution.

The Körber AutoSort Mobile is a sorting robot solution. It offers an alternative to traditional sortation systems in that it does not require a fixed track. The solution uses free-moving, independent robots that help businesses reduce their heavy reliance and investment in fixed automation. Instead, the Körber AutoSort Mobile AMRs offer greater scalability at a comparatively economical investment and thus a much quick return on investment.

Nishan says this will be a true gamechanger for the ANZ supply chain and logistics industry. He describes the solution as fairly simple, in that it utilises AMRs that allow dynamic sortation, taking the shortest and most direct path.

“This kind of flexibility offers significant efficiency and productivity gains over a traditional cross belt or shoe sorter. As this solution can also be operated on a table-top, this form of picking or sortation offers increased flexibility during peak periods,” he says.

Since the beginning of the COVID-19 pandemic, most retailers have seen a surge in e-commerce orders. Nishan says

MHD COVER STORY that many of Cohesio’s clients are looking to explore further opportunities in automation and says the timing to bring a new AMR solution to market couldn’t be better.

“We have listened to our customers’ requests for more scalable and affordable automation solutions that can be installed in limited spaces or mezzanine levels or those that can be quickly deployed in pop-up DCs or dark fulfilment store, and I am very proud to add the new Körber AutoSort Mobile table-top sorting AMR solution to our existing AMR portfolio,” he says.

For Nishan, flexibility is key when it comes to warehouse operations and the Körber AutoSort Mobile solution offers ultimate flexibility. “Robots can be added during peaks in demand, and the system expanded at any time. The entire solution can also be very easily redeployed elsewhere in the warehouse. This is particularly helpful when you see spikes in demand for specific SKUs, which we know many retailers have experienced during COVID-19,” he says.

Cohesio has always recognised the benefit of offering compelling and scalable solutions, as opposed to largescale fixed automation and has been leading the way in this space. The Körber AutoSort Mobile solution now offers Cohesio’s customers a sorting solution that is scalable, affordable and flexible.

“The capital required for deploying this system is up to 60 per cent less than a traditional sortation system.

Furthermore, it takes up much less space. We can also offer implementation timelines in a matter of weeks. For

Cohesio Group will now offer Fetch Robotics products to its customers.

these reasons, I’m confident that this system generates more than twice the ROI of traditional sorting systems,” Nishan says.

Ideal for a wide variety of goods across parcel sortation, e-commerce, wholesale and store replenishment. It can be utilised for picking, sortation, flexible table-top and mezzanine sortation and is capable of handling goods of up to 25 kilograms. Additional robots can be added to the operation in a matter of seconds, ensuring that there is no interruption in workflow or downtime.

“The use cases for this kind of automation are vast, whether it’s a large-scale e-commerce operations, retailer, 3PL or freight provider. Simply put, it’s for anyone who has a volume or pop up requirement for sorting products,” Nishan says.

FURTHER PARTNERSHIPS FOR GROWTH Cohesio Group pioneered the goodsto-person (GTP) AMR solution powered

by Geek+ into Australia and New Zealand in 2018. Since then, Cohesio has successfully deployed AMR technology across numerous logistics sites in this region, including a world-first GTP AMR deployment in a chilled warehouse.

The latest developments do not just stop at the new sorting AMR solution included within Cohesio’s parent company Körber’s product portfilo.

Nishan is also excited to tell MHD that Cohesio will be adding two further AMR products to its portfolio.

“We’re very excited to also announce partnerships with two

The capital required for the Körber AutoSort Mobile solution is up to 60 per cent less than a traditional sortation system. major international players in the AMR space; Locus Robotics and Fetch Robotics,” Nishan says.

Both US-based companies, Locus Robotics is based in Massachusetts and Fetch Robotics hails from innovation hot spot Silicon Valley.

For Locus Robotics, this new partnership gives the AMR provider access to a new market. “This is the first partnership in Australia and New Zealand for Locus, and we’re excited to bring this product to the Asia Pacific market,” Nishan says.

International logistics giant DHL recently ordered 1,000 Locus robots to deploy across 12 sites in North America, and Nishan says that he expects the Locus offering to be very popular in the APAC region.

“This region is leading the way when it comes to e-commerce growth.

AMR has proven to offer efficiency and productivity gains for retailers and logistics providers and will be crucial in meeting the demands that e-commerce providers now face,” Nishan says.

Similarly, Fetch Robotics has received a number of accolades for its innovative product. The intralogistics provider was named as a Leader in IDC MarketSpace for Autonomous Mobile Robots for General Warehouse Automation in 2019 and was recognised

by Fast Company in the category of Most Innovative Company.

“Fetch and Locus are both true market leaders in automation. It’s a driving principle of ours that we offer our customers the very best and latest in technology and automation. I’m really excited to see the great work that we will do with our new partners in the Australia and New Zealand markets,” Nishan says. ■ MHD JUNE 2020 | 21

MHD COVER STORY

ROBOT DEPLOYMENT AT CEVA LOGISTICS’ MELBOURNE SUPER-SITE After running a successful AMR pilot that led to a 400 per cent boost in picking rates for one of its largest e-commerce customers, CEVA Logistics Australia is leading the way with best-in-class picking productivity through the introduction of Cohesio Group’s (Körber) AMR solution.

The team at CEVA and Cohesio Group worked closely together to implement the AMR solution at the site in Truganina, Victoria.

A subsidiary of the CMA CGM Group, a world leader in shipping and logistics, CEVA Logistics is one of the world’s leading supply chain management companies. With more than 78,000 employees working across ten regional clusters around the world, it has a reputation as one of the world’s best logistics providers.

Operating across the automotive, consumer and retail, energy, healthcare, industrial and aerospace and technology sectors, CEVA Logistics Australia is one of the top five logistics providers in Australia. In Australia, the company operates a 250,000 sqm of warehouse, hardstand and breezeways for contract logistics and car carrying operations, and is home to many of its clients, including a range of e-commerce, industrial and automotive customers.

This site in Truganina, Victoria is one of the largest warehouses in the southern hemisphere.

22 | MHD JUNE 2020

Committed to its customers, CEVA takes pride in being flexible, agile and creative when it comes to custom solutions.

The company is currently engaged in a global push towards new and innovative solutions that will improve efficiency and productivity for its customers, with a particular focus on automation.

CEVA Logistics Australia understands the importance of speed of delivery and flexible delivery options for its newest e-commerce customer, a leading online shoe store.

This e-commerce provider’s business was growing at a rapid pace, and CEVA wanted to look at ways it could meet this growth in an efficient and productive way.

Meeting consumer demands on speed and cost of delivery is at the top of the agenda for any e-commerce retailer and CEVA recognised that it needed a faster and more cost-effective solution for this customer.

PROVING THE CASE CEVA was first introduced to Cohesio Group (now Körber Supply Chain), at a logistics trades show in Australia. As a result of seeing the company’s solutions, CEVA decided to explore AMR solutions for one of its newest e-commerce clients.

To complete an order for this customer, CEVA was required to deploy 12 to 15 people using radio-frequency (RF) devices for picking and because of the customer’s rapid growth, CEVA was required to add more and more staff to fulfil orders.

Cohesio worked out a data workflow and environmental analysis for CEVA and after seeing the predicted efficiency and productivity gains, CEVA proceeded with the project.

“With Cohesio’s AMR solution which is based on Geek+ technology, we immediately saw a very fast and efficient picking productivity and throughput solution,” Milton Pimenta, Managing Director CEVA Logistics Australia

MHD COVER STORY

and New Zealand says.

It was critical that Cohesio could deliver on its promise of improved picking rates and efficiencies in this first pilot as CEVA Logistics Australia was the first region to introduce AMRs. “CEVA has a number of clients globally that they feel that AMR technology could be suitable for. As this was the first pilot for the business it was extremely important that we delivered on our predictions,” Samir Rafiq, AMR Project Manager at Cohesio says.

CHALLENGING TIMELINES The project was signed off in October 2019 and went live in early January 2020. During this time, Cohesio integrated its solution into CEVA’s Warehouse Management System (WMS), shipped all AMR devices and trained all of CEVA’s staff who would be working with the AMRs. One of CEVA’s main requirements was to ensure that the solution was introduced with as little disruption as possible, while also meeting CEVA’s challenging timeline of four months from sign off to go-live.

“This was CEVA’s first step into AMR solutions, so it was a great opportunity for them to see how they could implement AMR in different areas of the business,” Samir says.

The project took a matter of weeks to

The AMR solution is perfect for CEVA’s e-commerce customers.

The AMRs have given CEVA fast and efficient picking productivity and throughput.

go-live and includes eight robots working across 400 sqm of warehouse space.

As with every pilot, key performance indicators were established around productivity, time of implementation and integration.

“These were key focuses for us, and we’ve achieved all of that in terms of future growth. We now have a continuous improvement plan to see what this solution can offer outside of this e-commerce provider,” Samir says.

FROM TEST CASE TO FULL SOLUTION In January 2020, the first pick in the system was completed and proved very successful for CEVA. The initial project was considered a proof of concept, and it’s now become a fully integrated solution for the company.

“This is the perfect solution for e-commerce. The beauty of Cohesio’s AMR solution is that nothing is bolted to the ground. Therefore, it is flexible, scalable and easy to set up anywhere in the warehouse,” Milton adds.

For CEVA, this pilot has demonstrated that this solution could work across a range of clients in Australia as well as worldwide.

This pilot was a test case for CEVA Logistics Australia to demonstrate that AMR enabled the business to meet the increased demand for its client in a costeffective manner, positioning it as a firstrate logistics provider. “This was a great opportunity to show CEVA worldwide how AMR implementation works with a custom partner as well as show that the key performance indicators could be met so soon after implementation,” Samir says.

According to Milton, the e-commerce customer is thrilled with the results of the project. “They are impressed that we have made this investment. They came to see the site a month ago and are thrilled that we’ve taken this next step in innovation and made the investment to improve our offering,” he concludes.

MHD JUNE 2020 | 23

MHD TECHNOLOGY

MAILROOM TO GLOBAL WAREHOUSE AUTOMATION BOOM Alex Stevens, Vice President of OPEX Corporation, shares how his family’s business went from transforming daily mail to supporting the world’s largest e-commerce companies with transforming their warehouses.

O

n a busy Monday evening in New Jersey, USA, Alex Stevens sat down to speak with MHD, located over 16,000 km away in Melbourne, Australia.

OPEX Corporation’s Vice President, Warehouse Automation, Alex Stevens’

OPEX Perfect Pick® HD Goods-to-Person Solution.

24 | MHD JUNE 2020

enthusiasm and pride towards OPEX’s successes can be heard all the way from the Mid-Atlantic region of the USA to Oceania through the telephone.

OPEX was at the forefront of an emerging direct mail trend in 1970’s America through Columbia Records.

Al Stevens, Alex’s grandfather, began the development and production of the first multiple station mail processing machine. In 1975 Al and his wife, Joanna, subsequently bought OPEX. Later, the Stevens’ sons, Mark and David, were brought into the business.

MHD TECHNOLOGY “I’m third generation in the family-owned business. Our company is more than 40 years old and it’s incredible to look at how the business has changed over time and where we are now. From letter opening and document imaging, to complete warehouse automation solutions,” Alex says.

The company is now recognised as a global leader in providing state-of-theart warehouse automation technologies, document imaging platforms, and highspeed mailroom automation. Today, OPEX systems deliver profitability and efficiency in a variety of settings around the world, including fulfillment operations and distribution centres.

HIGH THROUGHPUT AUTOMATION Growth in e-commerce has greatly impacted warehouse automation requirements. It’s changing fulfillment paths and requiring retailers, distributors, logistics services providers, and manufacturers to expand and reconfigure their fulfillment operations.

Alex says managing the flow of warehouse capabilities is crucial through automation, especially following unprecedented demand during lockdown measures throughout the global COVID-19 pandemic.

Many companies can no longer keep up with their order fulfillment demand, resulting in consumer dissatisfaction. Alex says, the ideal solution is to implement warehouse automation into your order picking and sorting operations.

“We have iBOT® robots that are able to travel vertically and horizontally within a racking structure, allowing an efficient system that’s integrated through the racking structure inside warehouses,” he says. iBOTs have 100 per cent access to the inventory in their aisle and can be driven through the rack and into pick stations in a matter of minutes, dramatically impacting throughput, even as order volumes change in the warehouse.

Alex says the iBOTs are part of OPEX’s “Perfect Pick®” solution. Designed and manufactured by OPEX, Perfect Pick is a unique robotic goods-to-person order picking technology.

According to Alex, traditional automation is complex which means it’s time, labour and cost intensive often beyond the reach of growing small to midsize businesses. “By streamlining the picking process, Perfect Pick makes goods-to-person automation feasible for businesses that previously thought it was out of reach,” he says.

“It’s highly flexible entry-level automation that can scale up quickly to meet changing demand and business cycles by eliminating

Alex Stevens, Vice President of OPEX Corporation.

“

We have iBOT® robots that are able to travel vertically and horizontally within a racking structure, allowing an efficient system that’s integrated through the racking structure inside warehouses.

”

complex front-end conveyors lifts and other transfer equipment.”

APPETITE FOR AUTOMATION Alex says OPEX has focused on automation systems that gel well into demanding e-commerce operations. “We’ve been focusing on the explosion in e-commerce sales, and we’ve been providing solutions to some of the largest e-commerce facilities in North America, as well as expanding our global presence,” he says.

In a large fulfillment centre, a typical online order may consist of a number of products and might be located on opposite ends of a facility. Alex says because of the various sizes and shapes of the products that make up an order, efficiently sorting these items remains the bottleneck.

“Sorting individual items into orders can be a labour-intensive and manual process that requires too many steps and way too many touches, valuable warehouse space is wasted on conveyors that transport these items to the next sort location,” Alex says.

OPEX utilises a Sure Sort™ smart automation solution based on iBOT delivery MHD JUNE 2020 | 25

MHD TECHNOLOGY

Perfect Pick is a unique robotic goods-to-person order picking technology. technology. This robotic item sorter easily handles complex variables and delivers a wide variety of parcels and single items to their final location in a single pass. “While handling a wide range of sizes, packaging, and orientation of items, Sure Sort reads each bar code and delivers items in a single pass at up to 2,400 items per hour,” Alex says.

Alex says iBOTs are directed by Sure Sort’s host software in conjunction with virtually any warehouse automation management system. Once an order is completed, the bin is cleared, and the order tote or shipping container is transported to a packing station in preparation for shipment.

“We’re about providing the next generation of warehouse automation technologies. Our iBOTs look ahead of the next few orders, and if things change you have the ability to change real time orders in the queue.

This is the sort of flexibility that is vital for e-commerce growth,” he says.

FOCUSED SOLUTIONS A global presence is not new to OPEX. The company believes in time, non-U.S. sales could exceed those of its home country.

While the company has successful business in more than 40 countries, efforts are still underway to expand its global footprint in the APAC region.

Alex says OPEX has had a presence in Australia since 2015. That was the same year that OPEX was the proud recipient of the NJMEP/NJBIZ Manufacturer of the Year Award at the Made in New Jersey event, held on National Manufacturing Day. Responding to the massive growth in the region, this year OPEX hired Khurshed Mirza, as the Director of Warehouse Automation in Asia Pacific.

“We’ve experienced substantial growth and have followed changes in the retail and ecommerce landscapes. Consumer behaviour 26 | MHD JUNE 2020

“

We’ve experienced substantial growth and have followed changes in the retail and ecommerce landscapes.

Consumer behaviour has caused increased uncertainty about future fulfillment requirements, that’s why we believe having an automated and scalable solution is the first warehouse requirement.

”

has caused increased uncertainty about future fulfillment requirements, that’s why we believe having an automated and scalable solution is the first warehouse requirement,” he says. “The appetite for automation is already very high, taking advantage of integrated platforms available via technology is a smart move.”

Whilst warehouses across the globe adapt to a new normal following social distancing orders, automation will become a business enhancing tool. Alex says there is huge interest in OPEX solutions as companies recognise the ability to keep up with order fulfillment while having fewer physical staff due to the custom Perfect Pick and Sure Sort systems that minimise people-to-people contact. “Daily operations at warehouses will never be the same, maintaining highly efficient systems that naturally enforce social distancing are essential in this current climate,” he says.

Alex describes OPEX’s solutions as transformative for the warehouse. He credits OPEX’s own manufactured and engineered robotic goods-to-person order fulfillment system as the solution to meet retailers target objectives that includes secure storage of diverse products, maximum productivity with minimal labour and accurate and fast picking.

“Across the globe we provide solutions that are able to provide value for the small e-commerce companies fulfilling a few thousand orders a day, right up to the largest distribution facilities dispatching thousands an hour,” he says.

“As a child, I could never have imagined our family business would be a leading global provider of automated warehouse technologies, so it’s our legacy to continue to provide performance enhancing workflow solutions and cost-effective results to thousands of organisations worldwide.” ■

EFG.

ENERGY FOR GROWTH.

“We trialled other products, and compared to other EFG trucks on the market, Jungheinrich is the only brand that ticks all the boxes” “We’ve achieved a win across all categories. Jungheinrich provide superior units that are ergonomic and proven to be the best equipment for our operations.”

VFS - Victorian Freight Specialists

Whether you choose the innovative li-ion technology or our proven standard lead-acid battery. With our EFG, you save costs in the long term, whilst rendering your warehouse operations even more efficient.

Learn more about our EFG purchasing, rental and replacement options now at: www.jungheinrich.com.au/products

13 16 87 jungheinrich.com.au

MHD MATERIALS HANDLING

FILLING THE GAPS WITH AUTOMATION In today’s contactless world, automation is set to play an increasingly critical role in warehousing and operations. Neil Beveridge, Product Manager – Automation at Toyota Material Handling Australia tells MHD why.

T

oyota Material Handling Australia (TMHA) has a number of different automated solutions. One particular vehicle that Neil is seeing an increase in interest in is the RAE

Autopilot Reach Truck.

“One of the key benefits of this forklift, is that it is a hybrid manual/ automated forklift. It can be used in either fashion,” Neil says.

The RAE Autopiot requires minimum supervision.

28 | MHD JUNE 2020

The RAE Autopilot looks and feels like a regular Toyota reach truck, giving operators a sense of familiarity when they work with it for the first time. “We have found that sometimes operators are overwhelmed by automation.

Sometimes they are expected to learn a completely new system when working with an autonomous forklift. A major benefit of this forklift is that its features and general look are similar to that of a manual forklift,” Neil says.

A further benefit of investing in a hybrid forklift is if an operator comes across non-conforming pallets or loads.

Usually this would present a problem for an entirely automated forklift as it may not be able to handle them, resulting in a delay in operations. However, with the Toyota RAE Autopilot Reach Truck, operators can override the system and step in when needed.

“There’s greater flexibility with a forklift like this. You can troubleshoot and solve errors in a very timely manner by switching to manual if needed,” Neil says.

The RAE Autopilot provides the opportunity to run a 24/7 operation, something which Neil says we are set to see as demand for e-commerce and online shopping continues to increase.

“A lot of facilities are running eight to 12 hours a day. Within these shifts you see huge peaks in demand and volume. With automation, you have the opportunity to run operations 24 hours a day, seven days a week. This way you can flatten out your capacity so that you can get very consistent throughput levels. This makes it much easier to plan and predict the activities and capacity throughout your DC,” Neil says.

Furthermore, the forklift offers safety benefits. “The forklifts have a personal protective system, enabling 360-degree

MHD MATERIALS HANDLING personnel protection. They feature safety sensors that detect if anyone is walking around the forklift,” Neil says.

Compared to relying on a human reaction to stop or manoeuvre a forklift, the automated safety sensors offer a higher level of accuracy.

The forklifts also all connect with each other, and know where they all are at all times, completely removing the risk of collision.

ROYAL A-WARE CASE STUDY In Heerenveen, Netherlands a company specialising in the production, ripening, packaging and transportation of cheese has deployed 12 Toyota RAE reach trucks.

Royal A-ware now runs a 24/7 operation with the help of Toyota’s automated forklifts.

The 12 forklifts take care of the cheese transport between the production lines, the ripening rooms and the expedition area.

The forklifts feature a laser scanner that reads the reflectors on the wall, so that they can follow the layout that is programmed in the system manager from Toyota.

Each forklift is equipped with Lithium-ion battery technology. Ordinarily, batteries require a charging room, which takes up costly space.

Alternatively, lithium-ion charging stations can be placed in the working area. So, if a forklift has no assignment, it can charge itself.

Implementing automation has allowed A-ware to apply their employees’ knowledge to run operations, and let the automated forklifts do the driving, adding value for the manual workers.

The RAE Autopilot looks and feels like a regular Toyota reach truck.

“

A lot of facilities are running eight to 12 hours a day.

Within these shifts you see huge peaks in demand and volume. With automation, you have the opportunity to run operations 24 hours a day, seven days a week.

”

The truck features a laser scanner that reads reflectors on the wall.

Royal A-ware is so pleased with the automated forklifts that it plans to automate more than 20 reach forklifts at another location.

A NEW WORLD The RAE Autopilot Reach Truck requires minimal supervision, this means that while we continue to practice social distancing the site can remain fully operational.

“This automated solution doesn’t require a large amount of labour in a tight space, you can control the system with minimal staff who are spread out,” Neil explains.

As we move to a new norm post COVID-19, Neil says that automation will play a huge role in warehousing and logistics operations.

This forklift is ideal for those looking for a first entry into automation, or those who have already introduced some level of automation.

“Whether you are looking at implementing AGV style automation, or large-scale, they all complement each other. The Toyota RAE Reach Truck is versatile and flexible so plays a crucial role in any sophisticated operation looking for efficiency, safety and productivity gains,” Neil says.

The Toyota RAE Autopilot Reach Truck comes in three different models; 1.6 tonne, 2 tonne and 2.5 tonne and can lift up to 10 metres in height.

Freecall 1800 425 438 or visit toyotamaterialhandling.com.au for more information. ■ MHD JUNE 2020 | 29

MHD SUPPLY CHAIN

Image credit: GS1 Australia

COVID-19 has put medical supply chains in the spotlight.

DIGITISING THE HEALTHCARE SUPPLY CHAIN The global healthcare sector is enhancing its technology capabilities to strengthen operations and improve efficiencies across the supply chain. MHD delves deep into the opportunities for digital transformation in Australia.

W

hile patient safety is at the top of the agenda for the healthcare industry, there are other drivers that impact the success of the industry, many of which supply chain and logistics play a critical role in.

So far, 2020 has been one of the most challenging years on record for the global health care industry and the COVID-19 pandemic has put medical supply chains in the spotlight.

We’ve seen global shortages of testing kits, personal protective equipment (PPE), drugs, and critical medical equipment such as ventilators.

Before the COVID-19 pandemic unfolded in Australia, the bush fire 30 | MHD JUNE 2020

crisis resulted in a nationwide shortage of face masks earlier this year. This was then exasperated as COVID-19 cases started to emerge in Australia from mid-March, and masks were in critical demand again, as they are used as a primary source of protection against the coronavirus.

Public discussion about supply chains and the nation’s exposure to shortages of critical items as a result of complex and global supply chains moved further up the news agenda, as people started to realise that access to adequate healthcare goes beyond doctor, patient relations.

Healthcare is a complex industry,

and beyond the crucial role of patient safety, there are a number of different industry challenges. These include the ability to identify and authenticate pharmaceuticals and medical devices, track and trace products, improve efficiencies, have accurate visibility of inventory levels and more.

Catherine Koetz, Industry Manager – Healthcare Industry Manager at GS1 says when you compare the healthcare supply chain to the FMCG supply chain, healthcare has some catching up to do.

“When we think about one of the most sophisticated supply chain operations in this country it would be the grocery industry. It’s heavily

MHD SUPPLY CHAIN

“

When we reflect, one of the biggest concerns from the sector was getting an earlier idea of how much PPE was available. If we were able to have greater visibility of what we had and where earlier, we may have been able to react sooner.

”

which patients these implants had been used on.”

If the investment is made into increasing visibility and traceability, then these issues can be rectified much faster and more accurately. This is also relevant during the current issues around supply and demand during COVID-19.

“When you look at medicine shortages, if you have greater visibility across the supply chain at any given time, this would be extremely useful for the healthcare industry during times of shortages and supply issues,” Catherine says.

During COVID-19, as there has been a panic around trying to find alternative suppliers of PPE, implementing solutions such as a WMS could help prevent some of that panic, Catherine says.

“When we reflect, one of the biggest concerns from the sector was getting an earlier idea of how much PPE was available. If we were able to have greater visibility of what we had and where earlier, we may have been able to react sooner,” Catherine says.

These advantages can also be seen when it comes to wastage. “Many medical supplies have an expiry date, much like the food sector, if we can understand where our stock is when it’s about to expire then we can start to reduce waste,” she says.

Image credit: GS1 Australia

automated and has been utilising barcode technology for a long period of time. Though they still have room to improve in some areas, in general they have good visibility of where their product has come from and where it is at any point in time. But when you look at healthcare, we just don’t have that,” she says.

According to Catherine, a large proportion of health supply chain in Australia still runs on paper. “Inventory levels are managed manually, dynamic locations are not utilised, there’s no real traceability and there is often a manual pick list as well as manual stock adjustments,” she says.

Many of the challenges that the health supply chain industry faces are unique to the industry, Catherine says due to the industries differences, so comparing the Health sector with the sophistication of say the FMCG sector is not always useful.

The health sector is complicated, there is Federal and State funding and management, as well as a blend of private and public providers, making collaboration and co-investment a difficult reality.

Some of these issues are around obtaining funding for key infrastructure. “It still surprises me that there is such a battle to get investment for things like Warehouse Management Systems (WMS) or similar technology, you would never see this in any normal distribution business,” Catherine says.

This creates a highly competitive environment for funding. “If you have the potential to invest in say an electronic medical record for the likes of the Royal Children’s Hospital in Melbourne, or a robot that can perform an operation, then that’s where the funding will go instead of on a WMS. That’s just the reality,” Catherine says.

SMARTER SUPPLY CHAINS Despite the fact that supply chain is often overlooked in the healthcare industry, Catherine says if further investments are made, a number of benefits can be achieved.

“You have all the familiar benefits that this kind of investment offers in any industry, benefits around traceability, safety and increased visibility. But there are also some very positive advantages that are specific to the health sector,” she says.

Catherine uses a product recall as an example. “A few years back there was an issue around breast implants. It had been revealed that a certain batch of breast implants included industrial grade silicone and it was leaking into some patients, with devastating effects. But it was extremely difficult to trace

When it comes to funding, supply chain is often overlooked in the health care sector.

MHD JUNE 2020 | 31

MHD SUPPLY CHAIN

At the very core of the Melbourne Health Logistics project was increased stock visibility.

32 | MHD JUNE 2020

Brett Henderson, National Business Facilitator at AusIndustry.

broader industry. This meant reviewing processes and technology capability and changing manual methods to the use of automation and digital technologies,” Brett Henderson, National Business Facilitator at AusIndustry – Entrepreneurs’ Programme says.

Included in the program is the help of a business advisor for 12 months, in this case that was Mike Sewell, Business Advisor – Medical Technologies and Pharmaceuticals at Australian Industry Group.

Mike says the project was a truly transformative one and one that he thoroughly enjoyed working on.

“One of the things that surprised me was how unsophisticated some of the systems were at first. But many of the companies were extremely invested in this project and ensuring that they improved their capabilities not just to work with MHL but anyone across their supplier list,” Mike says.

When Mike was first bought on board, he recognised that there was a lot of manual work being done across these suppliers. “Lots of faxes, a lot of toing and froing. When products dropped out of the system, they would be handled multiple times. It really was quite inefficient.”

Both Mike and Brett echoed Catherine’s thoughts around the healthcare being behind the FMCG sector when it comes to digitising its supply chain. “In the FMCG sector there is the Australian Food and Grocery Council who create supplier guidelines, this alignment is not the same in the healthcare sector and it puts them behind the grocery sector by decades in terms of collaboration and transparency,” Brett says.

While there is intent to improve things across Australia’s health supply chain, if there isn’t the collaboration

Image credit: GS1 Australia

A recent example where the health industry has made some great strides in utilising technology is the Melbourne Health Logistics Supplier Improvement Project.

The project involved ten smallto-medium enterprise participants.

The emphasis was on digitising the supply chain, this included a focus on applying data capture technologies, making data quality improvements and introducing suppliers to Electronic Data Interchange (EDI).

Melbourne Health Logistics (MHL) implemented a transformative warehouse management solution, with the aim of solving challenges with their supply chain and inventory management.

The new system meant that suppliers to MHL were required to adjust the way they provided product and information.

To support this requirement, MHL engaged the AusIndustry Entrepreneurs’ Programme to work with suppliers in building capability.

“The aim of the project was for SME suppliers in the health sector to digitise their supply chains, ensuring the ability to meet the needs of MHL and the

Image credit: GS1 Australia

A STEP IN THE RIGHT DIRECTION: MELBOURNE HEALTH LOGISTICS CASE STUDY

and coordination that is found in other sectors it will be difficult, Brett says.

However, Brett found the level of engagement and commitment from the SMEs in this project very impressive. “They took on the challenge by investing considerable time and money, in many cases up to $100,000,” he says.

Brett says that the majority of the participants not only embraced the pilot, but they looked for more ways the technology could help their business.

“They took a holistic approach and as they did this, they started to recognise opportunities to really improve revenuegenerating capabilities and productivity improvements. There is a real change in a majority of the businesses who are in the program, in terms of capability-building and finding new opportunities for the business,” he says.

At the very core of the project was benefits around increased visibility and transparency but Mike says that the benefits ran much deeper. “All of the businesses have productivity benefits and are all experiencing a return on investment. They certainly wouldn’t go back to manual processes

Image credit: GS1 Australia

MHD SUPPLY CHAIN

After the project, all businesses involved boasted productivity benefits. now. In fact, one of the businesses even introduced their own WMS after seeing the benefits,” he says.

“While it is still early in the process, there’s a real change in a majority of the businesses who are in the program, in terms of capability-building and finding new opportunities for the business,” Brett says. ■

MHD SUPPLY CHAIN

LOGISTICS REVOLUTION Has just-in-time logistics reached its expiry date? Daniel Kohut, Senior Solutions Advisor at Blue Yonder, says businesses can still reap the benefits of running a just-in-time operation if they better utilise data and artificial intelligence.

J

ust-in-time (JIT) logistics management has been highly regarded as an advanced inventory management technique, designed to increase efficiency, cut costs and decrease waste by receiving goods only as they are needed.

With inventory purchased or produced at short notice there’s

34 | MHD JUNE 2020

no need to have unsold inventory taking up valuable warehouse space.

Leading companies, such as Apple and Kellogg’s, have adopted this method to improve cash-flow and maintain efficient inventory levels. Tim Cook, CEO of Apple, famously said, “Inventory is fundamentally evil. You kind of want to manage it like you’re in the dairy

business. If it gets past its freshness date, you have a problem.”

The JIT methodology requires businesses to be extremely agile with the capability to handle a much shorter production cycle. Following unprecedented demand and record e-commerce order fulfillments across the globe during the recent

MHD SUPPLY CHAIN

COVID-19 pandemic, some businesses have identified flaws in JIT logistics management.

Daniel Kohut, senior solutions advisor at Blue Yonder, says traditional JIT methodology has shifted following retailers’ problems with order fulfillment due to the COVID-19 pandemic. He says it’s more essential than ever to have accurate demand forecasts and insights into customers’ buying habits as miscalculation could have a significant negative impact on business operations.

Despite the challenging climate and

unpredicted demand, Daniel believes data is the key to protect profit and regain flawless Just-in-time (JIT) logistics management. In addition, while every company has access to large volumes of information, there is one thing that separates the leaders from the followers: the ability to apply that data strategically.

RADICAL SHIFT Logistic and e-commerce companies are facing an era of unprecedented change, as well as demand.

Digitalisation is evolving customer expectations and companies need to embrace changes in the industry.

Daniel says every company needs to change the way they’re doing business today. “Whether you’re a retailer, manufacturer or 3PL, in the encompassing of supply chain networks, it’s of value to recognise the need to make a radical shift and adopt new market models,” he says.

New technologies are enabling greater efficiency and more collaborative operating models; they’re also re-shaping the marketplace in ways that are only just beginning to become apparent. Advanced analytics and algorithms are proving essential to separating critical facts from trivial information, and then translating that key data into decisions that support pre-defined strategic goals. While every company is applying data in some way, the leaders of the digital revolution are leveraging it for toplevel strategic impact.

With so many technologies competing for management attention and investment, defining a clear digital strategy that’s integrated into business strategy is now even more critical.

“Software is changing agility in the supply chain, and more importantly, driving change to protect profit margins,” he says.

Daniel says the need to integrate data analytics and social supply chains to provide much better traceability and predictability is impacting transportation and logistics. Shippers aren’t generally part of a branded retail experience. Most private endconsumers are what we call ‘shipperagnostic’ meaning they don’t care who delivers their goods, as long as they get them reliably, quickly and cheaply.

Consumers want more flexible delivery, expect faster time-to-market, reduced defect rates and customised products. They expect to pay the same price for shipping regardless of capacity constraints faced by their shipper.

That’s why digital convergence is a must for every logistics company, Daniel says.

“Cloud technology can enable platform solutions, which in turns makes it possible to use new business models, to provide flexibility and scalability as well as standardised MHD JUNE 2020 | 35

MHD SUPPLY CHAIN

Data is the foundation of success in today’s digital, connected, fast-moving business world.

and harmonised processes across the whole organisation,” he says.

Gathered, analysed and applied strategically, data is the foundation of success in today’s digital, connected, fast-moving business world. Daniel says if your digitalisation strategy isn’t aimed at using real-time data to support top-level, strategic decision making, then you are missing one of the most crucial opportunities presented by digitalisation.

BEYOND JUST-IN-TIME Daniel says his team, who provide expert advice in the field, are noticing the stages of software onsets throughout the supply chain sector. Companies in the supply chain space are looking for alternate methods for cheaper and faster solutions and software is being developed in depth to heighten business capabilities.

There is no other industry where so many industry experts ascribe a high importance to data and analytics in the next five years than transportation 36 | MHD JUNE 2020

and logistics. Daniel says there are vast opportunities to improve performance and serve customers better when part of a digitally integrated supply chain.

Utilising machine learning and artificial intelligence techniques to data analytics can deliver truly dynamic routing, he adds.

“Now is the time to go beyond JIT, it’s about getting more insight into what is available across the market at any point of time, especially in relation to inventory management,” Daniel says. He thinks a lot of consumers and companies are in a state of flux; however, no matter the situation or role in the supply chain, people always want to have access to more accurate information regarding traceability and accountability.

“The speed of change is the major factor causing disruption in the supply chain, the way the economy is changing and the expectation for data to respond to that change,” Daniel says.

With any type of information, it’s about making improved decisions as the supply chain continues. He says that’s

why real time visibility is transforming logistic management.

Using a hypothetical example, Daniel shares that if he made an online order on Tuesday and expects it by Thursday, as a consumer he wants some form of predictability whether those goods or services will be achieved by the expected date.

“There may be 100 steps involved, from order distribution to transportation to my door. Therefore, artificial intelligence (AI) and machine learning is a vital tool in digestion of digital information in the supply chain sector, and companies need to start preparing for future outcomes from predictability software,” Daniel says.

To put this into further context, Daniel says, a grocery sector’s software system can predict the weather in a certain city will be 32 degrees in two days. Based on its accumulated data, the company’s software system would know cold beverage sales are heightened on hot weather days, which allows JIT solutions to be more proactive to allow technology

MHD SUPPLY CHAIN

to respond to anticipated demands.

“The more data companies have, the bigger the opportunity to start applying more advanced AL to start predicting more accurate outcomes, and then start driving more evidence-based business making decisions at an expedited rate,” Daniel says.

DYNAMIC CHANNELS The rate of adoption of any automated solutions is not limited by its technical advancement rate. Instead it will be driven by the rates of regulatory and customer acceptance as data traceability reaches new levels of sophistication.

“We’re seeing a shift in demand from traditional JIT methods to new channels that are more logical depending on the marketplace that is changing the expectations of universal delivery times,” Daniel says. He has been pleased to see more companies across multiple divisions joining the wider conversation of data management.

“The emphasis on technology has definitely shifted, the adoption rate has rapidly increased towards software as a primary enabler in a supply chain network,” Daniel says. Blue

“

Now is the time to go beyond JIT, it’s about getting more insight into what is available across the market at any point of time, especially in relation to inventory management.

”

Yonder’s customers in Australia include some of the country’s largest grocers, third party logistics operators and manufacturers. “We’re even seeing more customers come to our team to leverage analytics and machine learning,” he says.

Blue Yonder’s company mission is to power and fulfil and it has fully embraced the move to the cloud. He says that Blue Yonder’s competitive advantage is utilising software-as-a-service (SaaS) to power digital transformation, allowing its clients to be more agile in their respective markets.

“Our research shows that due to current disruption in the market, more customers are looking at its network in a holistic manner, moving into a global view of services,” he says.

Daniel stresses the importance in developing technology and software to harmonise data.

“There are still a lot of digital opportunities for companies to adopt. To connect the entire system of providers in a supply chain network, whether that be within Australia or the inbound route, right through to the global service offering, operations have the ability to be further advanced,” Daniel says. ■

IS THE SAFE & LEGAL LOADING OF YOUR VEHICLES STILL BASED ON GUESSWORK? Maximise Payloads | Avoid Overloading Fines | Reduce WHS Risk

with Diverseco’s TruckWeigh™ Onboard overload monitoring & payload control system. > Provide drivers the knowledge they need & security they deserve > Meet CoR compliance requirements > Optimise payloads NOW BLE AVAILA ON E S FOR U AILER R T IT L MU H AS ES, SUC VEHICL ND A S E L B B-DOU !

IN TRA S ROAD

e | tat s ry ve e in ces fi f o

70 99 6 0 00 13

|

Associate Member of

.au om c . eco ers v i d

MHD MATERIALS HANDLING

VFS has saved more than $150,000 on forklift gas since switching to a battery electric fleet.

FOLLOWING THE LEADER From working night shifts on ground, to becoming Director of Operation at Victorian Freight Specialists, Chris Collins reveals the importance of the company’s high-performing Jungheinrich EFG forklift trucks.

G

rowing need for expansion of warehouse space and rising e-commerce business in Australia has significantly increased demand for forklift truck replacement and bulk investment in purchase of electric forklift trucks for warehouse operations.

In recent years, there has been a considerable shift away from internal combustion to electric powered forklifts. Chris Collins, Director of Operation at Victorian Freight Specialists, began his career in transport working with his father and grandfather in their family transport business, Express Freight.

He joined Victorian Freight Specialists over 22 years ago as a night operations manager, and although now he oversees the company’s entire operations department, Chris still loves the feeling of team spirit when he works the occasional night shift.

“I’ve done some night shifts recently to see how things are going, and I just can’t believe how different warehouse operations are now because of our Jungheinrich EFG forklift trucks,” he said. Chris used to return home every night for 10 years covered in gas smoke 38 | MHD JUNE 2020

residue from head to toe.

“When I was out on the floor, there were 20 or so forklifts making a loud racket buzzing around with gas. I would finish my shift with a dirty face and a really bad taste in the throat,” he says.

Chris credits the Jungheinrich EFG trucks as a game-changer for not only his health, but for the entire business as a whole.

“At a time when health is so essential, having an outstandingly clean site because of our powerful EFG trucks is setting a new standard in terms of ergonomics. It’s a pleasant environment at work, and I know our staff are thankful across the board, due to the changes in our forklift model,” Chris says.

SILENT ACHIEVER Australia has witnessed significant growth in the industrial property market over the past few years, with greater interest by property and real estate investors to invest in business parks and logistics. VFS cater for local and regional distribution through Victoria and Southern New South Wales and have recently expanded their

operations, which sparked the need to revamp its essential equipment.

“Our focus is to have the best equipment possible. We had internal combustion trucks for years because they’re a cheap unit. Then we trialled other products, and compared to other EFG trucks on the market, Jungheinrich is the only brand that ticks all the boxes,” Chris says.

VFS have over 175 employees across five large depots in Dandenong, Truganina, Wodonga Geelong and Gippsland. VFS provide general freight services and are the biggest general freight carrier in the state of Victoria.

Chris says it’s a giant organisation that requires the most reliable equipment to serve Australia’s wellknown hardware, pharmaceutical, automotive and beverage providers.

“It’s more important than ever to provide efficient and cost-saving service to our customers who are also providing an essential service during this time.

The efficiency we’ve created is because of Jungheinrich EFG forklift trucks already in operation,” Chris says.

“We’ve achieved a win across all categories. Jungheinrich provide

MHD MATERIALS HANDLING superior units that are ergonomic and proven to be the best equipment for our operations.”

WORKPLACE WITH COMFORT Chris says VFS prides itself on being a loyal company, committed to offering good, old fashioned customer service. When choosing new machinery that has the capacity to alter business operations for good, he says it’s about finding a provider that aligns with your company’s values.

For many workers, like Chris, who have been involved in warehouse operations for many years, the introduction of new technology through shifting from internal combustion trucks to EFG trucks has been a welcomed miracle, and now the staff will never look back.

“Mistakes in the warehouse are dangerous.

Jungheinrich has provided a safer unit with ergonomic design resulting in great throughput and driver comfort,” Chris says.

Safer operation during a time of unprecedented demand has been crucial to sustaining workplace morale and operations, Chris says. He highlights the massive difference from no longer experiencing the setbacks with previous gas units.

“No changing LPG bottles and no inspecting IC Engines, no exposure to exhaust fumes, has provided substantial saving. Minimum operation noise with the battery electric unit means a quieter and more efficient ride for the operators,” Chris says. He also pointed out there has been notable savings in fuel costs due to low power input for chargers, rather than renting and storing LPG bottles.

“The business was spending over $150,000 a year just on forklift gas alone before we thankfully changed to our electric fleet, and now these units are installed at all of our depot sites,” he says.

VFS utilises Jungheinrich EFG trucks for maximum performance at minimum energy consumption.

Jungheinrich economic designs result in workspace safety and driver comfort.

“

It’s more important than ever to provide efficient and costsaving service to our customers who are also providing an essential service during this time.

The efficiency we’ve created is because of Jungheinrich EFG forklift trucks already in operation.

”

“It’s amazing how changing over a forklift model can transform a warehouse into a cleaner environment. Before we went to our full fleet of electric trucks, Jungheinrich ran charging numbers and trials that really made us feel comfortable with our choice,” Chris says.

EFFICIENT AND EASY Li-ion batteries are revolutionising the market for electric industrial trucks.

Jungheinrich’s li-ion batteries ensure continuous operation and thanks to their long service life, Chris says VFS are getting plenty of use out of them.

With units requiring battery changes, the Jungheinrich Snap fit System has ensured a safe and non-time-consuming method of installation, in two minutes. Chris says the new Lithium Ion units installed at the company’s Wodonga site allows 24-hour operation without the need to change batteries.

“When you tender for major work, you have to be able to ramp up operations and have key machinery in place that are also sustainable and cost-efficient,” Chris says.

He added that the professional ongoing service has helped maintain the electric fleet to always be high preforming machinery.

“One thing that goes without saying is that the Jungheinrich After Sales Service works excellently and is always there when you need it, which is rare.”

Cleaner energy technology has provided new possibilities for VFS’ warehouse efficiency. “The Jungheinrich equipment has improved our efficiencies and substantial savings in our operational costs,” Chris says.

After rolling out the full fleet of electric trucks across all VFS’ depots, Chris wishes the company converted to the smarter and cleaner units sooner. “We always want to be on the front foot and have the most innovative and safe equipment that has proven results, which we definitely have,” Chris says. ■ MHD JUNE 2020 | 39

MHD E-COMMERCE

Brand Collective boasts a portfolio of iconic fashion brands.

MEETING AUSTRALIA’S APPETITE FOR ONLINE FASHION RETAIL Brand Collective is one of Australia’s leading fashion and apparel omnichannel retailers. The organisation receives nearly 4,000 orders every day. Daniel Allison, Logistics Manager and Caleb Brown, Chief Finanical and Operating Officer at the company reveal why its WMS has been at the heart of any process improvements.

A

truly omnichannel retailer, Brand Collective runs around 18 different retail platforms across a number of Australia’s most prominent brands in fashion and apparel.

Brand Collective boasts a portfolio of iconic owned and licensed brands, including Superdry, Volley, Clarks, Hush Puppies and Julius Marlow.

The company’s distribution centre in Altona North, Victoria services the entire Australian and New Zealand market.

Across its brand portfolio, Brand Collective operates in the B2C space as well as B2B, servicing online orders for the likes of Myer and THE ICONIC as well as marketplaces such as Ebay, Catch and Amazon.

Taking up the largest share of Australia’s e-commerce pie, fashion 40 | MHD JUNE 2020

and apparel saw above average growth in Australia in 2019, at 22.3 per cent year-on-year. In addition, fashion remained the most popular category for Australia’s online shoppers, accounting for 35 per cent of all purchases.

These statistics were recorded prior to the COVID-19 online shopping boom, which has seen e-commerce levels break all previous numbers on record.

Without revealing specific numbers, Caleb Brown, Chief Financial and Operating Officer at Brand Collective confirms the company’s e-commerce growth in 2019 was significantly higher than Australian market trends.

“We’ve definitely seen significant growth across our online retail during COVID-19, particularly when all the retail stores started to close down at

Caleb Brown is Chief Financial and Operating Officer at Brand Collective.

MHD E-COMMERCE

“ Daniel Allison is Logistics Manager at Brand Collective. the end of March,” Daniel Allison, Logistics Manager at Brand Collective says.

Many consumers had no choice but to switch to online shopping and for many, this was their first delve into the e-commerce world.

It is predicted that this increase in online shopping is here to stay, and omnichannel retailers such as Brand Collective are already reaping the benefits of investing in a sophisticated and advanced Warehouse Management System (WMS) to meet this increase in demand.

Everything we do is based on meeting due dates, in order for us to meet customer delivery windows the order has to leave the warehouse on time.

Since introducing Microlistics, we have total visibility of that and as a result have been smashing our targets in this space.

”

visibility of that and as a result we have been smashing our targets in this space,” he says.

Brand Collective implemented Microlistics WMS around four years ago. Daniel played a central role in the procurement and implementation of the project and says the whole team was unanimous in the decision that Microlistics was the right provider for Brand Collective.

“When selecting a new WMS provider, we ran a really exhaustive process. We involved most of the team in the process and invited a number of different vendors in to present their solution. We then asked each of the team members to rate and score them accordingly,” Daniel recalls.

Daniel says the decision was clear, Microlistics was the right vendor largely due to their flexibility. A further winning factor was that the support team are based in Australia. He also says that they were competitive on price.

“As they have a local support team, they know and understand who we are and what we’re trying to do. They know how our operation works and can quickly identify any issues, instead of 50 different steps you have to go through with a vendor that

LOCAL SUPPORT FOR THE ANZ MARKET At its national distribution centre in Altona North, Brand Collective delivers an impressive amount of e-commerce orders.

Fulfilling between 2,000 to 4,000 orders per day, that cover 25,000 to 35,000 units, the DC services 2,000 wholesale customers, 120 retail stores and 15 e-commerce stores.

The site is home to nearly 50,000 SKUs and approximately 1.8 million units.

“The capacity across our brands was really tested during COVID-19 peaks in demand, but one thing we knew for sure was that the Microlistics software was rock solid,” Daniel says.

Daniel says the challenge at the beginning was ensuring Brand Collective had the right amount of resources in the right place, Microlistics WMS ensures they fulfil orders in 24 hours and there has been no issue in the software meeting the increase in demand.

For Daniel, one of the most important measures of success for Brand Collective is due dates. “Everything we do is based on meeting due dates, in order for us to meet customer delivery windows the order has to leave the warehouse on time. Since introducing Microlistics, we have total

The Brand Collective site at Altona North is home to nearly 50,000 SKUs.

MHD JUNE 2020 | 41

MHD E-COMMERCE

Brand Collective receives nearly 4,000 orders a day.

doesn’t understand the market you operate in,” Daniel says.

REAL-TIME REPORTING According to Daniel, one of the major benefits that Brand Collective has been able to realise through the Microlistics WMS is the amount of data and reporting that the business has access to.

“A huge upside for us is that this new system has given us so many opportunities to extract more data and continues to give us advanced visibility compared to our old system,” Daniel says.

Historically, if Daniel wanted to gain access or insight, he would have to engage the IT department and wait days for the information. But now, since implementing Microlistics, he says he can get access to whatever data he needs at the click of a button.

“We have also used the system to generate some automatic reports, that way we can continually refresh them throughout the day and see where we’re at in real-time,” he says.

This is echoed by Caleb. “Our previous WMS was not user friendly in terms of self-service data extraction.

Getting simple information out of it was difficult and time consuming.

But now we use the data we get out of the Microlistics software to not only 42 | MHD JUNE 2020

monitor the business in real time, but also to inform ideas around how we can improve efficiency and labour productivity more generally,” he says.

Brand Collective receives online orders constantly. Having access to reports in real-time enables Daniel to make intelligent decisions around resources so that the warehouse operators can keep up with demand.

ADVANCED CAPABILITIES For Daniel, Microlistics is more than a vendor, they are a trusted partner.

They have introduced Brand Collective to many technology partners that meet their needs going forward “We work very closely with the team at Microlistics. They have been very proactive in showing us new technology.

Whether it be voice picking or automation, we are constantly looking at ways to innovate with them,” he says.

Brand Collective operates its numerous brands through zoning areas in the warehouse. “Within our warehouse we have 12 different areas for each individual brand. This allows us to become more efficient in putting away stock and reducing pick paths,” Daniel says.

Through this process, Brand Collective uses Microlistics Enterprise which offers advanced omnichannel

capabilities around picking e-commerce orders efficiently along with store replenishment and B2B wholesale orders, accurately, pack the right carton or parcel to right order and seamlessly manage shipments to carriers. All while being integrated with existing systems for inventory, order management, accounting and online storefronts.

“This profile allows us to pick out an individual order in a dedicated area, instead of having operators moving around the entire warehouse.

Zoning our warehouse has offered us significant efficiency gains with picking rates and the Microlistics WMS supports this,” Daniel says.

Brand Collective has approximately 40 different tasks set up in the Microlistics system. “The software allows us to take less time to pick and order, but also allows us to be agile and change workflows with the click of a button. With so many brands, it’s hugely beneficial to be able to redeploy resources accordingly,” Daniel says.

Daniel says the Microlistics team are great to deal with and he is impressed with the proactive approach they take with Brand Collective. “We have had such a great experience with Microlistics and look forward to growing our business further into the future with them,” he concludes. ■

APRIL 2021 MELBOURNE

NOMINATIONS

NOW OPEN SPONSORED BY Department of Transport

HELD IN CONJUCTION WITH

AUSTRALIAN BULK HANDLING EXPO

2021

www.mercuryawards.com.au

MHD TECHNOLOGY

Access to accurate dimensional data leads to more intelligent picking and packing decisions.

DATA AT THE HEART OF AUTOMATION

As the industry continues to implement automation across all aspects of fulfilment operations, Rhett Talley, Marketing and Business Development Manager at Diverseco says accurate master data is the foundation of running a successful operation.

D

uring the COVID-19 pandemic, many retailers have had to ramp up their e-commerce offerings.

Leading grocery retailer Woolworths has reported a 320 per cent increase in online customer demand and has since doubled its capacity in this area.

E-commerce speciality stores such as Kogan, Catch, Adore Beauty and Amazon are experiencing growth levels like they have never seen before. Many consumers are shopping online for the first-time ever and it is likely that this growth is here to stay.

Warehouse and distribution centre (DC) operations are being pushed to their limits as the stress to meet this peak in demand is leading many to explore automation capabilities.

Mobile goods-to-person picking robots, mezzanine storage and stock retrieval automation systems, and automated conveying sortation systems are now commonly found in DCs across Australia.

44 | MHD JUNE 2020

According to Rhett Talley, Marketing and Business Development Manager at Diverseco, the foundations of all successful warehouse automation operations lies in accurate SKU dimensional data.

Historically, if a supply chain manager or warehouse management system (WMS) knew the length, width, height and weight of an SKU it was deemed a sophisticated operation.

But now, as retailers and thirdparty logistics providers (3PL) run increasingly automated operations, this is not enough to satisfy the intelligent systems found in a warehouse today.

The benefits of automation across a logistics operation have been proven.

Goods-to-person methods minimise waste, reduce time between picks, and also significantly increase pick efficiency. However, for this kind of automation to work, it has to have access to very reliable and precise SKU dimensional measures, Rhett says.

INBOUND AND OUTBOUND OPERATIONS Access to SKU dimensional data has significant benefits for both inbound and outbound operations, Rhett says.

“If you have access to accurate dimensional data about all of the SKUs coming into the warehouse, then you can make better decisions around layout, types of automation you will deploy, space saving and facility design,” he says.

With regards to outbound operations, accurate dimensional data is absolutely key to running an efficient operation.

“If a customer orders three different SKUs from your store, you need to pick and pack those based on the data you have about these items. Is the item bendable, stackable, nestable, fragile, heavy, foldable? All of these criteria will go into the decision that the operator will make for packing the items,” Rhett says.

Carton optimisation programs as well as box-on-demand solutions

MHD TECHNOLOGY are becoming increasingly popular in e-commerce operations and if the program has access to dimensional data it can make an intelligent decision for the operator to pack the boxes into a certain size carton.

This also has implications for shipping costs. “Most shipping providers require that you declare the correct packed weight and dimensions of the item being shipped as that’s what they are charging you for. When you’re being charged for space on trucks or planes you want to minimise the cubic dimensions of the package or carton as much as possible. And accurate dimensional data allows your WMS to make the most intelligent decisions it possibly can around picking and packing,” Rhett says It can also make decisions around how pallets should be packed. For example, ensure that heavy and nonbreakable items are backed at the bottom of a shipment. All of these decisions can impact efficiency, accuracy and cost.

MAKING THE MOST OF YOUR WMS INVESTMENT Rhett says that organisations often start to consider the benefits of accurate dimensional SKU data when they introduce a new upgraded WMS system.

“There is usually a business trigger that causes someone to make the decision to automate the capture of SKU dimensional data. This could be implementing a new WMS or a new goods-to-person automation system, or even when building a new DC. Without accurate SKU data, you cannot get the most out of these investments,” Rhett says.

A common issue for logistics operations is that the data they receive around SKU properties is often out of data, or simply incorrect. “Quite often DCs can’t trust the data that vendors supply to them with regard to SKUs. It may have been correct once, but the packaging could have changed, so DCs will often need to audit or re-check weight and dimensions and update it within the WMS,” Rhett says.

Diverseco is the exclusive supplier of Cubiscan in Singapore, Australia and New Zealand. Cubiscan is an automatic dimensioning system that captures dimensional data for SKUs. Many e-commerce retailers,

distribution centres, and 3PL service providers use the Cubiscan system in their operations, including Catch. com.au, Adore Beauty, Toll, Amazon, DHL, Bollore, DB Schenker, Linfox, Australia Post, CEVA, Office Works, and many more.

“Many of these retailers have tens of thousands of SKUs, and they are getting new ones all the time. To ensure that they have the right data for each and every product they sell, every new item goes through the Cubiscan before it enters any picking area and all that information is entered into the WMS in real time,” Rhett says.

Rhett gives the recent Drakes DC in Adelaide as an example of where this data really comes into its own.

“At the Drakes DC they have a very sophisticated Dematic goods-to-person and goods-to-robot operation. A robot can pick an SKU and drop it into a tote.

But in order to do that, the robot has to know more about the SKU. It has to know what pressure it can apply, how crushable it is and therefore what height it can be dropped from without causing damage,” he says.

A Cubiscan will give all of this data to the WMS, allowing the robot to make intelligent decisions of how it will pack and handle the goods.

“As automation becomes more intelligent, it will benefit from having a better understanding of SKU characteristics besides just height and weight,” Rhett says.

Additionally, if you have accurate data for SKUs, any errors can be highlighted before the shipment leaves the warehouse. If an order consists of four items, all recorded to weight 1kg

each, but it weighs 3kg at dispatch, then it is immediately known that there is an error with the order.

“An operator may miss this kind of error but having accurate data for every SKU in the warehouse will ensure that this order does not leave the warehouse,” Rhett says.

LOCAL SUPPORT The Cubiscan is designed and manufactured in the US, but Diverseco has developed its own software for the operation of Cubiscan.

“We have designed our own software so that we can support our local customers in real-time. Whenever we supply a Cubiscan, we are supplying our Diverseco designed CubeMaster Software.

This means we can dial in through team viewer in real-time and troubleshoot as necessary,” Rhett explains.

Diverseco has had great success with the Cubiscan product offering, leading retailer Catch.com.au purchased a Cubiscan more than eight years ago when their business first started to take off. Now they have two and use them every single day, Rhett says.

“For Catch, accurate SKU dimensional data is the foundation of their operations. That’s how they can pick, pack and dispatch accurately and efficiently,” Rhett says.

Accurate dimensional data underpins any efficiencies that the WMS can offer, without the accurate data the WMS cannot make intelligent decisions. “Any investment in automation or WMS software needs to also coincide with investment in being able to offer these sophisticated systems the most accurate data possible, Rhett concludes. ■

Diverseco is the exclusive supplier of Cubiscan in Australia, Singapore and New Zealand.

MHD JUNE 2020 | 45

MHD WAREHOUSING

There are a number of best practices warehouses can implement to manage the challenge of COVID-19.

THE CHANGING FACE OF WAREHOUSES

Will social distancing, swipe cards and shift patterns become the new norm? Raghav Sibal, Managing Director for Australia and New Zealand at Manhattan Associates offers his thoughts on how warehouses are set to change during and post COVID-19.

W

e are currently witnessing a time of unparalleled polarisation within different sections of the global economy. The impact of COVID-19 on economies around the world has resulted in massive increases in redundancies, wiping out much of the positive growth since 2008. However, there are green shoots of recovery emerging, with some organisations and sectors experiencing record levels of consumer demand. Warehouses servicing the grocery sector are certainly one of the areas performing strongly.

Only last year the warehouse sector was experiencing a shortage in skilled warehouse workers, leading to fulfilment challenges around seasonal peaks such as Click Frenzy, Black Friday and Boxing Day Sales. Fast 46 | MHD JUNE 2020

forward six months and with so much labour now seemingly available you could be forgiven for thinking that the challenges of the last decade would now be a thing of the past – not so unfortunately.

Instead, the challenges of 2019 have given way to a whole raft of new ones that COVID-19 has been a direct or indirect catalyst for, and which have fundamentally changed how warehouses operate.

EMPLOYEE AND TECHNOLOGY FLEXIBILITY The restrictions and rigidity of certain systems and business models have been put under the microscope recently and there is a growing recognition of the need for flexible and agile solutions

across all sections of the supply chain. But more than that, in a post COVID-19 environment, warehouse operations will likely be measured by more than just productivity and efficiency levels (while these will always remain important); they will also be measured by much ‘softer’ drivers too.

As supply chains were put under pressure due to COVID-19 consumer demands - in particular for items like toilet paper, non-perishable foods or personal protective equipment warehouse staff had to step up their work output at the same time many others stayed at home. Now with the easing of lock down restrictions across Australia, the warehouse of tomorrow will need to put enhanced measures in place to support key supply chain

MHD WAREHOUSING workers, ensuring the right technology and conditions are in place to limit the daily risks. This may result in fundamental changes to warehouse operations, including how orders are fulfilled to eliminate the number of interactions present in the process.

HEALTH AND SAFETY Every organisation, big or small, will tell you that the health and well-being of its staff is paramount. Further to that, comprehensive health and safety plans while COVID-19 is still active in the community can also mean the difference between having happy, loyal, engaged staff and worried, inefficient, disengaged, workers.

There are a number of best practices warehouses can implement to manage the health challenges of COVID-19.

These might include limiting numbers of worker in specific zones, adhering to strict social distancing measures while in the workplace or closing communal areas and limiting the numbers of seats per table in the canteens to avoid social interaction.

Other changes could be using swipe keys rather than touch screen keypads and increasing shift rotations to maintain picking efficiency and productivity, while avoiding mental and physical health issues.

Some forward-looking organisations are even exploring the potential uses of biometric technology to monitor and manage the health of their employees and this is certainly a growth area of tech innovation that is likely to blossom far beyond the end of the current pandemic.

their distribution centre (DC), often by the time orders were ready to pick-and-ship, the inventory was no longer available. This false record of inventory arises when an older Warehouse Management System (WMS) is in place that does not update inventory levels in realtime. Australian businesses that experienced this will need to evaluate their WMS in the near future and potentially look at a cloud-native system that can scale and flex with demand and instantaneously updates inventory details to ensure an accurate picture of stock on hand for sale and shipment every time.

THE NEW FORM OF NORMAL The impact of this pandemic will likely be felt in all sections of society and business long after a vaccine has been created and a new form of normal resumes. But, will we ever return to a state of ‘normality’ akin to 2019? Or did COVID-19 fundamentally change the way we look at employeremployee relationships in general, especially for key workers and core sectors like warehouses?

Whether you are an academic, warehouse manager, pharmaceutical manufacturer, head of supply chain or simply a consumer, the basic premise

of supply and demand suggests that warehouses would be fully staffed and workers could expect flat wages with such large pools of potential employees currently available.

However, COVID-19 is changing accepted norms and employers are having to not only increase wages, but also to look into ‘softer’ forms of employee engagement and incentivisation too.

Much like opening Pandora’s box, I suspect it will be difficult to reverse these trends once the pandemic has passed, and ultimately it may prove no bad thing for employer-employee engagement and socio-economic balancing in the longer-term.

As we look ahead expectantly to a future free from COVID-19, warehouses and their important functions will be one of the key sectors driving economic recovery in Australia.

The last four months have certainly shone a spotlight on the vital importance of the warehouse space as the control room from which supply chains run and in turn, global commerce emanates.

More importantly maybe, it has also highlighted the pivotal importance of the people and systems that make warehouses and supply chains function too. ■

BUSINESSES CANNOT SELL WHAT THEY CANNOT FIND Online order levels grew to record highs following the recent mass retail store closures across Australia.

This resulted in many businesses being simply unable to keep up with demand and struggling to find the right inventory to fulfil new orders. As a result, due to warehouse pressures, many retailers resorted to cancelling sales, or only partially fulfilling them.

The common cause for these issues is that the business’ own warehouse management system (WMS) was telling warehouse managers that they had stock to sell, but because of the massive volumes going through

The last four months have shone a spotlight on the warehouse space.

MHD JUNE 2020 | 47

MHD TECHNOLOGY

THE RISING TREND OF TOUCH-SCREEN MOBILITY As supply chains across Australia and New Zealand become ever more reliant on integrated technology, the trend towards touch-screen mobile devices has been a crucial step in the development of increased efficiency in the warehouse.

Brian Lang, Director Real Time Logistics at Dematic offers MHD his view on touch-screen technology in the warehouse.

L

eading supply chain and warehouse operations require staff to have effective access to workplace and product information in order to complete tasks and capture data accurately, so that products are where they’re needed when they’re needed.

Handheld devices have long been a staple within the supply chain, to ensure warehouse staff are equipped with real-time connectivity to host systems and information, to increase accuracy and productivity. However, in recent years we have seen a shift to the use of touch-screen mobile devices, in order to give warehouse workers technology that they can quickly adapt to because it reflects the technology they use outside of work.

WAREHOUSE MOBILITY BENEFITS The warehousing industry has adopted mobile technology as a way to enhance operations. By integrating mobility into everyday processes, a better rate of accuracy and speed can be achieved to optimise operations within supply chains. By investing in these digital solutions, warehouses have seen many benefits of real-time data and improved communications with employees.

This can have a very positive impact on workplace efficiencies, which can result in an increase in customer service and overall sales.

CUSTOMISABLE AND TRANSFERABLE TECHNOLOGY The mobile technology that we use in our everyday personal lives is now being 48 | MHD JUNE 2020

seamlessly blended into the technology we use in the workplace. This trend has reached the warehouse because it allows workers to quickly adopt the skills needed to successfully perform their jobs and get working faster, as the mobile touch-screen devices they use at work closely resemble the easy to use characteristics of many smartphone devices used outside of work.

The ability to fully customise user interfaces on mobile touch-screen devices - with solutions such as Ivanti Velocity, which is compatible with most Android devices - can bring the familiar, multi-touch experience of today’s advanced smartphones to workplace touch-screen devices.

Mission-critical apps can be positioned to create an easy-to-use interface that accelerates task-screen navigation and helps the workforce to enter data quicker and more precisely.

WHAT DEVICES ARE AVAILABLE TO CHOOSE FROM? Leading touch-screen mobile devices built on the Android platform that are frequently and effectively deployed within the warehouse include the Zebra TC800, Zebra TC57, and the Honeywell CT60.

The super rugged Zebra TC800 Touch Mobile Computer features a scan angle that eliminates constant tilting to scan barcodes, which improves worker comfort and productivity. The device saves on average 14 per cent per worker compared to traditional devices. The Zebra device also includes features that provide better control of mobile

devices, application access and Wi-Fi performance and security.

Another model from Zebra, the Zebra TC57 Touch Computers are rugged and include new capabilities that work to

MHD TECHNOLOGY provide enterprise-class touch computing, including faster connectivity, which enables workers to maximise their productivity by minimising process cycle times.

The rugged Honeywell CT60 is ideal for enterprises that require connectivity at any time and at any location, with fast data capture for maximum uptime and productivity. The Honeywell device features an integrated, scalable platform which enables enhanced security, reliability and performance.

HOW TO DEPLOY MOBILE TECHNOLOGY IN THE WAREHOUSE The deployment of touch-screen mobile devices in the warehouse enhances workplace productivity, accuracy and security, whilst also placing an increased focus on maximising a return on investment (ROI). In order to successfully deploy touch-screen mobile technology to warehouse environments, it’s important to take a proactive approach when initiating how the system will translate to your existing warehouse procedures.

“

The super rugged Zebra TC800 Touch Mobile Computer features a scan angle that eliminates constant tilting to scan barcodes, which improves worker comfort and productivity.

”

This includes steps such as ensuring that the devices are set up and ready for the workday, forgoing guesswork for data driven decisions, and predicting any issues that may impact productivity. The most important factor is to consolidate your important product data so that it is transferable within the warehouse.

As more and more supply chain operators adopt the trends of touch-screen mobility, they allow their workplace processes to be optimised, which in turn increases efficiency and productivity and result in a positive ROI. The familiar, easy to use designs of touchscreen mobile devices make them compatible with most systems – including the world’s most used platform, Android - allowing employees to work with a system and interface that is similar to that of their own personal mobile phones. This makes them the perfect tool for streamlining warehouse skills and capabilities.

For further information visit realtimelogistics.com.au. ■

Touch-screen devices in the warehouse enhance workplace productivity, accuracy and security.

MHD JUNE 2020 | 49

MHD SUPPLY CHAIN

KEEPING YOUR HEAD ABOVE WATER Körber Supply Chain CEO Chad Collins says today’s supply chains are mission-critical, he tells MHD why.

T

oday’s supply chains are increasingly complex. Some sources of this complexity are familiar: handling more products; partnering with more suppliers; fulfilling through more channels; meeting customer expectations for choice, convenience, speed, and price to name a few. Then there are unexpected disruptions challenging supply chains across the globe and changing how we think about crisis mitigation and risk avoidance.

These complexities exist regardless of region, industry, or business size.

Nonetheless, businesses need to serve their customers under these circumstances — making supply chain management mission-critical to the majority of organizations moving goods. There are many moving pieces to consider, and some organisations have more resiliency than others. This 50 | MHD JUNE 2020

includes technology, system flexibility, agile connectivity and integrations to a growing number of solutions, and transparency up to the last mile.

So how do we keep our heads above water when complexities arise? How do we stay ahead of the ever-changing nature of supply chain? To reduce supply disruption and risk, consider the following:

ADAPTABILITY A flexible technology platform is key.

The ability to make changes quickly can make all the difference, especially when the unexpected becomes a reality. Voice and Autonomous Mobile Robotics (AMR), for example, can provide solutions for scaling to quickly adapt to arising needs. But you need infrastructure built for pivoting to add these systems without disrupting operations and further complicating

difficult situations. Voice technology, in particular, is a proven solution that can be used for more than 24 different processes in the warehouse alone – leading to improvements in productivity, accuracy, training time, and employee satisfaction. On the software side of things, cloud infrastructures provide the system scalability and managed services that offer vital resources when they’re needed most.

EFFICIENCY Many warehouses struggle with labour challenges, be it shortages during peak periods or unexpected occurrences like COIVID-19. Supply chains need to be prepared to do more with fewer hands. To overcome these challenges, automation technologies can augment the workforce. Layer pickers, for example, can manage up to 98% of all

MHD SUPPLY CHAIN

“

Connectivity also gives customers critical information during crises. Maybe you won’t be able to come through with some items as quickly as before.

But, at least you can let your customers know in a timely fashion. This helps them manage the circumstances and preserves your relationship.

”

sourcing to production to retail also increases accountability at every link of the supply chain. This helps with manufacturing and demand planning.

Connectivity also gives customers critical information during crises. Maybe you won’t be able to come through with some items as quickly as before. But, at least you can let your customers know in a timely fashion.

This helps them manage the circumstances and preserves your relationship.

We are all heads down trying to move the needle in our roles within this challenging and incredible industry. But sometimes we need to take a step back and look past our daily numbers and ask some important questions: What happens to my partners and customers if my supply chain breaks down? Are our operations tough enough to serve our communities and be there through thick and thin?

Trust is the ultimate differentiator.

Thinking about supply chain resiliency through the eyes of your customers is a great reminder of the importance of your services.

Fortunately, we have the technologies to plan ahead and be a rock within our respective communities when we’re needed most. That is a path to unbreakable relationships and long-term success. ■

Technology is critical for demand planning and forecasting. retail products. By integrating these systems into the WMS and other critical logistics systems, automation can be a long-term solution whether you’re a SMB or a large, global organisation.

INSIGHT Technology is critical not only for day-to-day operations but also for demand planning and forecasting. We live in a data-driven world, but without insight that puts data in motion, it can be difficult to use all the data generated by your operations in a meaningful way.

Using correct data sets and forecasting tools will be crucial to companies as they navigate the current market environment and continue to make strategic decisions.

CONNECTIVITY System integration is not as easy as it sounds.

Sure, some technologies play nice together.

But connectivity goes beyond the tech stack.

Customers, partners, and suppliers all need full visibility of shipments and material flow. The good thing is that this builds trust between all parties (not to mention customer loyalty). Consistent visibility from MHD JUNE 2020 | 51

MHD SUPPLY CHAIN

Supply chain has moved from the shop floor to C-suite level.

MASTERS OF ORCHESTRATION

Seasoned supply chain professional Abe Eshkenazi intended to visit Australia to deliver a keynote at MEGATRANS. With the event now postponed until 2021, Abe delivered his keynote virtually. MHD reports.

A

be Eshkenazi is the CEO of the Association for Supply Chain Management (ASCM). Launched under Abe’s leadership, ASCM is built on the foundation of APICS. The topic of Abe’s keynote is professional development, and why continuous professional development in supply chain roles is now more important than ever.

Abe believes that supply chain roles are no longer tactical. He says we’re currently witnessing a transition from the tactical activities into a much more

52 | MHD JUNE 2020

aligned, highly integrated activity.

“Supply chain managers used to be a subject matter expert with functional competency. However, now you need to have more strategic imperatives to be able to understand how the organisation fits from its vendors all the way to the customer, and the customer’s customer,” Abe says.

Abe says this is exasperated by recent activity around COVID-19. “Four months ago, when most of us were in a room with other professionals across our organisations, many didn’t

know what we did. The conversation was around questions about what we supply, what products, when and how.

However now the conversation has changed. We are now being asked to defend ourselves,” Abe says.

Supply chain professionals are being asked to explain delays and outages rather than explain what they actually do, Abe says.

According to Abe, as little as six years ago supply chain was seen as a function.

“We were called upon when there was a problem, but now we play a crucial role

MHD SUPPLY CHAIN in mitigation and recovery. This is something we will see become even more important during and after COVID-19,” he says.

Supply chain has moved from the shop floor to C-suite level. “There is a significant need for qualified supply chain professionals and the expectation for these professionals has changed dramatically,” Abe says.

For Abe, being a subject matter is now the price of entry. “Roles and responsibilities are now beyond expertise. We need professionals who can collaborate, are cross functional, adaptable, and responsible. There is no better example of this than COVID-19,” he says.

Abe offers the metaphor of an orchestra leader and says supply chain professionals are now masters of orchestration.

SKILLS SHORTAGES AND CAPABILITY GAPS In the mid 1990s, there was only half a dozen universities offering a bachelor’s or master’s degree in supply chain. Now there are more than 500 offering courses of these kind globally, Abe says.

However, of these graduates, Abe says only one in six is actually ready to work in a supply chain role straight out of university.

There continues to be issues around over qualification in certain areas and under in others. Abe says, most skills are overweighted in tech and data, but the problem comes when there is a requirement to assess that information and apply key learnings from the data.

“By 2025, there will be a shortage of two million workers across the supply chain, and that doesn’t include any issues around the current disruption,” he says.

Yet, supply chain graduates have a very attractive starting salary, second only to engineers, Abe says. In addition to high starting salary, more than 90 per cent of

graduates are placed after their studies, demonstrating the high demand in the market.

“

This pandemic has demonstrated the value of supply chain professionals like no other time.

Our healthcare professionals will make sure we are safe and healthy, but our supply chain professionals will ensure that our economy can sustain individuals and be critical in our ability to live healthy and productive lives.

”

SUPPLY CHAIN AS THE KEY TO RECOVERY As we move towards the road to recovery in a post coronavirus world, Abe says that supply chain professionals will be in demand more than ever before.

“This pandemic has demonstrated the value of supply chain professionals like no other time. Our healthcare professionals will make sure we are safe and healthy, but our supply chain professionals will ensure that our economy can sustain individuals and be critical in our ability to live healthy and productive lives,” Abe says.

Every industry has felt the impact of COVID-19, and Abe says it will be interesting to see what normal looks like when we start to see supply and demand return to predictable levels.

“One thing that has changed is the public perception of supply chain, there has been a lot more interest in the work that we do.

I think this is here to stay. We might see more developments across sustainability, particularly when it comes to conscious consumerism and what that might mean for supply chain operations,” Abe says.

With increased demands on supply chain professionals, Abe says professional development and education is now more important than ever. ■

Australasian Supply Chain Institute has been a Premier Channel Partner for APICS for over 60 years. For more information about the best rates and local deliver of APICS certifications and study in Australia, visit: www.asci.org.au or subscribe to the Information Pack for pricing and class schedules.

MHD JUNE 2020 | 53

MHD WAREHOUSING

Sure Sort is smart automation based on iBOT delivery technology.

DATA SAVVY DELIVERY Glen Urquhart, Sales Manager at Dexion Intralogistics shares a cost-effective sorting system that will be a game-changer for order fulfilment in Australia.

T

oday’s sort-to-order challenge has been escalated to a whole new level due to the pressure on e-commerce following new peaks in online shopping due to the COVID-19 pandemic.

Common challenges for businesses today are identifying order trends, peak days and slow days, all whilst ensuring there are no bottle necks in the operation on a daily basis.

Glen Urquhart, Sales Manager at Dexion Intralogistics, says ensuring a system is designed to minimise bottlenecks, regardless of the level of activity during any given day, is critical in moving inventory and improving operations.

For a 3PL business in Wetherill Park, Sydney, their online fulfilment operation was successfully detangled, due to a compact and cost-effective solution that has proven to be an international success.

Sort system, by Opex Corporation. Glen says Dexion is the only distributor that deploys this solution to the domestic market in Australia.

“The 3PL business in Sydney was the first site to implement the Sure Sort system. The company has a vast range of clients with online order requirements, and they were amazed at the efficiency of order volumes since it was first installed all those years ago,” Glen says.

Glen notes that many businesses across the current 3PL and e-commerce fulfilment sector are bursting at the seams with the high-volume levels across operations following unprecedented demand due to the

SURE SORT SUCCESS In 2015, when e-commerce sales were slowly beginning to account for a percentage of retail sales in Australia, a 3PL business in Sydney was proactive to seek a highly scalable, cost-effective, and configurable single item sorting system.

Glen says the company deployed Sure 54 | MHD JUNE 2020

Developed in the USA, Sure Sort is utilised by leading global e-commerce clients.

current pandemic.

“Picking and sorting technologies should be explored by all companies in the market looking to manage their order volumes,” he says. Glen thinks some companies find it daunting to completely change their warehouse solution.

“The Sure Sort is looking to simplify existing systems, not completely change operations in a complex manner,” Glen says. He thinks the reason the Sure Sort system is becoming increasingly popular with 3PL’s and e-commerce operations is because it can be integrated with existing systems and other picking technologies.

“Sure Sort is a tool that can complement existing machinery and systems. It’s definitely a leverage tool

MHD WAREHOUSING to enhance operation and in most cases, we’re looking at a return of investment well under 3 years,” Glen says.

PROVEN TECHNOLOGY Warehouses and distribution centres are handling increasing volumes of small multiline orders. Efficient sorting of items remains an obstacle, because of the various sizes and shapes of products that make up an order.

Although it may not be feasible for a small to midsize retailer to achieve full automation immediately, replacing the traditional manual sorting system with an automated solution is a good place to start.

Sure Sort was developed in response to challenge and represents a faster and more innovative approach to small item sorting. Glen says following the success of the Sure Sort deployment in Sydney, small businesses looking for a cost-effective entry into warehouse automation as well as large fulfillment operations looking to streamline their processes should also consider the benefit of the solution.

Developed in the USA, Sure Sort is utilised by leading global e-commerce clients. Glen says there is a reason that leading companies are installing the state-of-the-art warehouse automation technologies and its proven profitability and efficiency in a variety of settings around the world shows the potential it can have to Australian fulfillment operations.

Glen says Sure Sort is smart automation based on iBOT delivery technology. iBOTs are powered by ultracapacitors which

Dexion Intralogistics Team (L to R) Glen Urquhart, Graham Urquhart, Bill Case and Kris Wittig.

“

Picking and sorting technologies should be explored by all companies in the market looking to manage their order volumes.

”

automatically recharge as they move throughout the system, helping Sure Sort deliver attractive energy efficiency.

“Multi-directional iBOTs are intelligent wireless vehicles that can effectively transport the smallest of items and inventory up to 2.3kgs, and regardless of size, packaging, or orientation of an item, Sure Sort will read every barcode and sort each item in a single pass,” Glen says.

“This automated sortation solution is modular, making it a fit for all business sizes, allowing companies to have the flexibility for the goods-to-person system to grow, incrementally, at the actual rate a retailer’s e-commerce business is growing.”

SUPPORTIVE SOLUTIONS Dexion has operations and a team presence across North and South Asia, the Middle East, Australia and New Zealand, where the company is trusted by some of the largest organisations in the world.

Glen says despite the company’s worldly knowledge and solutions, it understands that Australia is a unique market. He says partnering with Opex, a leader in warehouse automation technologies is an exciting collaboration for the nation.

“Dexion is a very trusted and well-known brand. We are looking after our clients by bringing over international solutions and innovative products especially for the Australian market,” Glen says.

He says the global partnership helps fasttrack the installation of the Sure Sort system that is manufactured in the USA. “It’s comes together very quickly. We set a world record on site at Wetherill Park in 2018, we had the iBOT technology up and running in two days once it arrived and the machine acceptance test was completed a few days after,” Glen says.

“We haven’t done any other piece of machinery that was as seamless as Sure Sort to install. The service technician on site for the first 12 months is also an added bonus that comes with this compact solution, proving it’s an extremely well supported solution.”

Glen says the Sure Sort system is the most compact solution available on the market. He believes e-commerce will continue to spike, so preparing warehouses and distribution centres with a smart automated solution is the only answer to aid growing order fulfillment.

“Sure Sort the only machine we see available on the market today that can provide a solution for demands now and in the future too. Sure Sort is highly scalable in both size and throughput. Simply add expansion modules and iBOTs to adjust to growth and peaks in demand,” Glen says. ■ MHD JUNE 2020 | 55

MHD WOMEN IN INDUSTRY

THE POWER TO POSITIVELY INFLUENCE MHD catches up with Hayley Jarick, Chief Executive Officer of the Supply Chain Sustainability School about the importance of working for an organisation that aligns with your own personal values as well as the importance of leadership, mentorship and advocacy.

Hayley Jarick, Chief Executive Officer at the Supply Chain Sustainability School.

W

hen did you first start working in supply chain or logistics?

In 2004 I started working for BlueScope Steel’s export department in Port Kembla NSW. I prepared financial and shipping documentation for steel coils mostly in containers. It was a great way for me to put my undergraduate degree to use (University of Wollongong, Bachelor Commerce majoring in International Business & Legal Studies). I learnt so much in that role about the risks of international trade and how unforgiving a typo can be on a bill of lading!

How long have you been in your current role?

I just celebrated my one-year anniversary as CEO of the Supply Chain Sustainability School. I was on the Advisory Board of the School when it launched five years ago and was delighted to come back with a new hat on.

56 | MHD JUNE 2020

What does a standard day for you look like?

I always kick off the day with a cup of tea checking emails and making any last-minute changes to my calendar.

The rest of the day is then a mixed bag.

As I manage a small not-for-profit it usually includes a bit of everything from finance, customer service, sales, business development, marketing, media, website development, copywriting, editing, graphic design, video editing, training resource development, event management, presenting face-toface or online, governance, reporting, strategic planning, constitutional reviews, facilitating meetings… basically whatever is needed.

and sustainable competitive advantage.

Logistics or supply chain departments are, more than ever, pivotal to the future success or failure of organisations.

Decisions we make daily have economic, social and environmental implications that we need be aware of, measure and mitigate in real time. It’s an incredible responsibility but also an exciting place to be!

What has been the highlight of your career so far?

I think every step in my career has enabled me to be where I am today, so I am grateful for all my experiences, even those that weren’t so fun to live through. A moment that really stands out in my mind was working in sustainability for the first time. It’s where I realised how much more I could get from a job when working ‘for purpose’ and not just ‘for profit’. Until that point, I was content with trading my time and expertise for cash. I think I also misinterpreted the values that others thought I should have as my own. If you get the chance, I recommend working in role that allows you to align your personal values with an organisation’s values.

What do you like about working at the Supply Chain Sustainability School?

I am incredibly lucky to work with amazing individuals from leading companies daily. Together the impact we make on the building and construction industry is incredibly positive but what I find the most amazing is the collective spirit in which it has been developed. The School is free to use and exists solely from the generosity and dedication of industry leaders who annually put their time and money where their mouth is and make sustainable knowledge freely available for everyone big and small. It warms my heart to hear that small family businesses have been able to grow and win tenders that they wouldn’t have thought to bid on before upskilling through the School.

There will always be laggards who don’t want to evolve but for those who want to lead the charge there is no excuse for ignorance. In decades to come I can look back on what I am doing now and proudly tell my children and grandchildren that I helped make their world better.

What do you like about working in the logistics or supply chain industry?

We are in an era when ‘transparency’ and ‘partnerships’ are driving innovation

What do initiatives like the Women in Industry Awards mean to you?

As a young woman working in male dominated industries, I struggled to

MHD WOMEN IN INDUSTRY navigate my way through the impossible expectations set by most men I worked with and for. I would not be where I am today without the leadership, mentoring and advocacy of women (and a few men) who challenged me when I needed it, encouraged me when others wouldn’t and congratulated me when I succeeded.

The Women in Industry Awards is a way of celebrating outstanding women and I hope they also motive young women to push through the challenges when their networks may not be as encouraging. We all have the power to positively influence women in our industry. It doesn’t take much to give a complement when someone deserves one, submit a nomination to let them know you noticed their contribution, encourage someone to apply for that job or take the time to ‘like’ their LinkedIn post before you scroll past it.

How does the Supply Chain Sustainability School demonstrate diversity?

Diversity is built into social sustainability along with fairness, inclusion and respect. It’s great to be part of project and company initiatives that strive for gender, sexuality, ability and cultural diversity not only in workforces but also in procurement choices. Personally, I think it’s

“

We all have the power to positively influence women in our industry. It doesn’t take much to give a complement when someone deserves one, submit a nomination to let them know you noticed their contribution, encourage someone to apply for that job.

”

important to call out a lack of diversity when I see it and push people to have the difficult conversations that are needed to enable change.

What are you most looking forward to in your upcoming professional life?

I am most looking forward to being surprised by what might happen. Most of the roles I have loved did not exist ten years before I was in them, so my career plan is more fluid than dreaming of a great role. At my core I love general management and continually learning new and old ways of a broad array of skills. Where I thrive is joining the dots in innovative ways.

I’d like to join more Boards where my experience and skills can diversify thinking. A lot has been said about gender targets on boards and I’ve often been asked if I would accept a role knowing I was the ‘token woman’. My answer has always been yes for a couple of reasons.

Firstly, no one asks if a man would accept a role knowing his gender afforded him privileges that enabled his recruitment or selection. Secondly, I think it’s an incredible privilege to work with an organisation that has acknowledged their lack of diversity and has taken the first step to remedy that imbalance. ■

Hayley says she would not be where she is today without the leadership and mentorship of women.

MHD JUNE 2020 | 57

MHD PROPERTY FOCUS

COVID-19 TO DRIVE E-COMMERCE STRUCTURAL SHIFT The latest research from Colliers International suggests that the move to e-commerce will be a key shift in the market. Luke Crawford, Associate Director of Research at the company outlines what you need to know.

Unlike the GFC where rents contracted between 9 per cent and 25 per cent in the prime market and 15 per cent and 25 per cent in the secondary market depending on location and yields increased to 8.5 per cent for prime and 9.5 per cent for secondary along the East Coast, industrial and logistics property is expected to perform well in the current economic environment. This outlook is underpinned by the structural and likely permanent shift towards online retail sales and recent growth in demand for transport and logistics.

Notwithstanding this, there are going to be tenant casualties who are unable to trade through this period and there are going to be others who experience a significant pick-up in business revenue.

While enquiry levels remain healthy in most markets, tenant demand has shifted towards defensive occupiers including food and beverage retailers, e-commerce groups (including fast moving consumer goods), transport and logistics providers, data centres and cold storage occupiers. Alternatively, 58 | MHD JUNE 2020

discretionary based occupiers and those reliant on goods from offshore markets will struggle in the current environment and will continue to do so over the foreseeable future. For these groups, those who were previously in the market for new or expansionary space have since placed these decisions on hold as they determine the impacts of COVID-19 on their business.

The COVID-19 outbreak has the potential to revive Australia’s manufacturing capabilities and reduce our reliance on global supply chains as more goods are made locally. The early signs of this are starting to emerge in food and pharmaceutical manufacturing industries and will assist the logistics sector through both increased domestic and offshore consumption.

While certain locations may see a fall in rents and a rise in incentives, we do not expect it to be to the same extent as we saw in the GFC. Likewise, we do not expect yields to blow out by 150 basis points as they did in the GFC. While there may be some softening of yields for secondary assets as risk becomes priced in, core assets with strong businesses within will remain highly sought after by both domestic and global capital and yields will remain firm. Tenant covenants will be increasingly scrutinised going forward and length of WALE will never be more important as the flight to quality thematic plays out.

The fundamentals for industrial and logistics property remain sound over the long term and as a result the sector Image credit: Emagnetic / Shutterstock. com

T

he outbreak of COVID-19 has had a significant impact on financial markets globally. As a result, global economic growth will contract over the short term and many are now starting to draw comparisons with the GFC in 2008 with regards to both occupier and investment markets. The reality is, it remains too early to draw any major conclusions and comparisons to the GFC as the situation is still unfolding.

However, recent data highlights that the ‘curve is flattening’ which remains positive for the Australian economy over the short term when compared to other countries such as the US and UK.

Many Australian retailers have redeployed their staff to online fulfilment to meet the increase in demands.

MHD PROPERTY FOCUS

It is forecast that the share of online retail in Australia will more than double over the next few years.

is expected to be less impacted than others through this period. With the exception of population growth which will take a hit in the short term as net overseas migration drops significantly off the back of border closures, the other key drivers of infrastructure investment and growth in e-commerce will continue to remain strong in the current environment. Across Australia, there is currently over $130 billion in transport infrastructure projects currently underway or committed to and these projects will continue to have a positive impact on the industrial and logistics market in Australia.

COVID-19 TO DRIVE E-COMMERCE STRUCTURAL SHIFT The value of e-commerce has increased exponentially as a result of COVID-19 and the take-up of online retail will gain market share on brick-and-mortar retail sales as consumers are forced to buy online. COVID-19 is expected to lead to a significant structural and cultural shift in the way consumers buy their goods, many of which have not shopped via online platforms before. Long term, these buying habits are expected to be permanent as consumers become accustomed to the simplicity of online shopping and as a result COVID-19 will accelerate the growth of online retail. The early signs of this are occurring with online retail sales in March jumping 23 per

“

The fundamentals for industrial and logistics property remain sound over the long term and as a result the sector is expected to be less impacted than others through this period.

”

cent - the highest monthly increase on record.

Highlighting the persistent demand for online retail goods due to global lockdown restrictions, Amazon in the US have hired 100,000 employees to cater towards its spike in demand for e-commerce goods. In Australia, we have seen retailers shift some of their staff to online fulfilment as they try to keep up with demand while there have also been cases of retailers using their existing stores as smaller fulfilment centres or ‘dark stores’. Notably, this includes Kmart and Accent group which owns Athlete’s Foot, Platypus and Hype DC. Despite recent growth, the proportion of online retail sales in Australia remains relatively small at 7.1 per cent, particularly when compared to other global markets such as the US and UK where it is as high as 22 per cent. However, given the abovementioned structural shift, we are forecasting that the share of online retail in Australia will more than double over the next few years. For the industrial and logistics market, this will result in heighted demand for both larger distribution centres and smaller last mile centres close to densely populated areas.

For more information or to read our latest Industrial Research & Forecast Report, please visit: https://www.colliers.com.au/en-AU/ Research/Industrial-RFR-H1-2020. ■ MHD JUNE 2020 | 59

MHD THE LAST WORD

EXPORT CONTROLS ON DUAL USE GOODS: DO YOU NEED EXPORT APPROVAL?

By Susan Danks, Head of Customs and Regulatory Compliance at the Freight and Trade Alliance (FTA). consider carefully whether any of the goods, software or technologies they send or take out of Australia may be subject to these export controls.

CONTROLS ON THE SUPPLY OF DEFENCE AND DUAL USE GOODS

Susan Danks, Head of Customs and Regulatory Compliance at FTA.

A

ustralia’s export control laws are part of an international effort to restrict the spread of conventional, biological and nuclear weapons and their delivery systems and to ensure the responsible export of defence and strategic goods technologies, while also encouraging the export of goods and technology where that is consistent with Australia’s national interests and international obligations. Australia’s export controls are contained in legislation that includes the Customs Act 1901, the Defence Trade Controls Act 2012 (DTCA), Weapons of Mass Destruction (Prevention of Proliferation) Act 1995 and Military End-Use provisions (section 112BA).

Significant fiscal penalties are issued in countries such as USA and Canada for breaches of their own legislation in this area. Businesses and other entities such as universities should therefore

60 | MHD JUNE 2020

The purpose of the Defence Trade Controls Act 2012 is to control the transfer of defence and strategic goods, software and technology in accordance with Australia’s international obligations and national interests. The Act includes provisions regulating: • exporting, supplying or brokering the supply of goods on the Defence and Strategic Goods (DSGL) List and related technology; and • the intangible supply of technology relating to DSGL goods, such as supply by electronic means - Defence and Strategic Goods List (DGSL) - The DGSL is divided into two parts, with ten categories in Part 2: • Part 1 is the Munitions (military goods) List.

• Part 2 lists goods that are “dual use”, that is, the goods that may have been developed for commercial purposes but could also be used for military or WMD applications.

To establish whether a particular item is controlled, the exporter must first check the DGSL to determine if the goods themselves are listed, and then whether related materials, equipment, software or technology are also listed.

There are some exceptions, for example DSGL technology already in the public domain or what would be considered

as basic research or is the minimum necessary information for patent applications.

If the goods are listed on the DSGL, the exporter must then check the technical specifications of the goods being exported against the control thresholds in the DSGL. Commonly, this associated technology may also be controlled if it is ‘required’ for the ‘development’, ‘production’ or ‘use’ of the controlled good. For example, the DSGL lists computers that are designed to operate below -45 °C or above 85 °C. The DTCA only applies to the technology necessary for the computer to operate at these temperatures. Technology that does not influence this ability is not controlled.

Controls on the export of intangible goods are also in place. This means that if goods that are in an intangible form would require a permit to export if they were in tangible form (i.e. if they were actual goods), they

MHD THE LAST WORD

require an export permit. Some examples of intangible means are email, fax, telephone and providing access to training or electronic presentations that contain DSGL technology.

The provisions apply across all sectors of industry, including training and research.

It’s important to remember too that the inclusion of controlled information in the repair and return of goods, or provision of a technical paper, specification, blueprint or even an email containing such information, sent overseas even if to a fellow employee or a client, is prohibited unless an export permit is first obtained. Importantly, it does not matter to what country the information is exported, including our allies.

The outcome is that a permit is also required to take controlled technology stored on a physical medium, such as on your laptop or a USB drive, outside of Australia. This includes scenarios where the information is sent by post or is carried by hand or in checked baggage.

PERMITS AND PENALTIES Exporters and their brokers should take particular care to determine whether their activities with defence or dual-use goods,

software or technologies may be subject to export controls and require an export permit.

Offences in relation to controlled defence and strategic goods, software and technologies can attract substantial penalties – in some cases, 10 years’ imprisonment or 2,500 penalty units (i.e. currently AU 525,000), or both.

“

US EXPORT GOODS

”

It must also be noted that if the export contains any tangible (e.g. parts) or intangible goods (e.g. software) that are of USA origin and required an export permit from USA, then an export from Australia may require export permits from both Australia and USA, Export permits for Australian goods are obtained through the Defence Export Control Office (DECO), but they cannot provide export permits for controlled US origin components or software.

If you get it wrong? Significant penalties including imprisonment can apply, and if the goods include components etc of US origin, then significant penalties may also be incurred from US. ■

Exporters and their brokers should take particular care to determine whether their activities with defence or dual-use goods, software or technologies may be subject to export controls and require an export permit.

MHD JUNE 2020 | 61

MHD FROM ALC

Governments have taken action to suspend or remove delivery window curfews.

SIGNIFICANT REFORMS DON’T ALWAYS NEED SIGNIFICANT DOLLARS The COVID-19 pandemic has been an expensive experience for governments around the nation.

B

udgets that were in surplus or close to balance have been pushed firmly back into the red, and this will undoubtedly affect the policy choices governments make in the months and years to come.

Yet, significant reforms don’t have to be accompanied by a big spend.

As governments turn their minds to policy actions needed to hasten the pace of Australia’s economic recovery, there is significant opportunity to achieve regulatory reforms that will be of lasting benefit to the freight and logistics sector.

The most visible manifestation of the COVID-19 crisis for many in the community was the sight of supermarket shelves that had been stripped bare in the early days of the crisis, as panic buying took hold.

Recent generations of Australians are unaccustomed to shortages of any variety, and the experience has perhaps for the first time - given many

62 | MHD JUNE 2020

a reason to pause and consider the centrality of effective supply chains to their day-to-day lives.

We all know that ours is an industry that can struggle to capture public imagination. Decades of uninterrupted supply have seen our industry largely taken for granted.

With community awareness of our importance and value heightened, it is time to pursue the regulatory reforms that industry has long sought with renewed vigour. If delivered these reforms can help prevent some of the supply chain challenges we witnessed in the early days of COVID-19, and during the bush fire crisis before that.

In this context, it’s worth bearing in mind that the single most effective government action taken to address supermarket shortages in March did not involve expenditure, but rather the stroke of a ministerial pen.

The most pressing challenge for logistics companies providing services

to retail outlets at the onset of the COVID-19 pandemic was getting stock into stores quickly enough to satisfy extraordinarily heightened levels of consumer demand.

The existence of curfews that prohibit deliveries during certain hours were a significant barrier to addressing that challenge. Fortunately, they were also one that was easy to address – as within the space of just over a week, governments in state and territory jurisdictions took action to remove or suspend curfews and give logistics companies the flexibility needed to facilitate overnight deliveries into supermarkets.

ALC and its members have long advocated for the removal of such restrictions, as they generally result in higher costs, greater levels of road congestion and are broadly incompatible with the demands of a modern consumer-oriented economy.

Now that the benefits of lifting such

MHD FROM ALC To prevent the continuation of this scenario, it is important that the National Planning Principles are supported by the development of a National Corridor Protection Strategy.

A consistent national approach to corridor protection is essential to achieving the planning reforms that the freight logistics industry needs. Effective corridor protection not only serves to prevent future community discord over land use; it can also deliver significant savings for taxpayers when it comes to the cost of building infrastructure.

Infrastructure Australia underscored this fact in 2017, when it found that close to $11 billion could be saved on land purchases and construction costs for seven future infrastructure priorities listed on the Infrastructure Priority List if swift action was taken to preserve relevant corridors.

This is also an ideal time to pursue harmonisation of regulations that govern freight movement as it transits across to the continent. To take one example, the 2018 Review of Rail Access Regimes, published by the (then) Department of Infrastructure, Transport and Regional Development noted there were roughly 150 different environmental regulations that rail operators must comply with when operating rolling-stock between

Perth and Brisbane.

Clearly, there are cost savings and other efficiencies to be gained by moving towards a single set of laws across jurisdictions governing environmental regulation, workplace health and safety, workers’ compensation, and drug and alcohol testing for the freight and logistics sector. The new-found spirit of cooperation engendered through the National Cabinet process should now be harnessed to secure that outcome.

In a constrained budgetary atmosphere such as that which is likely to endure for several years in the wake of the COVID-19 pandemic, it is even more important that governments drive though low-cost regulatory reforms that will still deliver tangible benefits to the freight and logistics sector, and to the wider community.

In that context, the permanent elimination of operational curfews, promoting better planning and land use outcomes and finally progressing the national harmonisation of state and territory regulations though the development of consistent national approaches to the regulation of freight transport seem like obvious policy priorities for governments to pursue in the remaining months of 2020. ■

Image credit: ArliftAtoz2205 / Shutterstock.com

restrictions have been demonstrated, governments should be encouraged to make their removal a permanent part of the new normal.

As ALC has consistently pointed out, many of the challenges facing freight logistics operators today – including road congestion, urban encroachment on freight facilities and the inadequate supply of logistics lands – have their genesis in poor planning. These challenges reflect the fact that freight movement is considered a far lower priority in many planning regimes than residential and commercial development.

Yet, without the ability to move freight efficiently and safety, neither residents nor commercial enterprises will be able to obtain the goods they need to function daily.

Developing a set of National Planning Principles was a key action to emerge from the National Freight and Supply Chain Strategy released last year. Establishing these presents us with an opportunity to achieve a better balance and ensure that freight movement is properly integrated as part of a more nationally consistent approach to planning.

A key outcome flowing from the establishment of National Planning Principles must be to enshrine distinct planning recognition for ‘freight and logistics lands’ within all state and territory planning schemes.

For too long, terms like ‘industrial lands’ or ‘employment lands’ have been used as a ‘catch all’ when discussing non-residential land use, particularly in urban areas.

Yet as our growing population increases demand for land, the application of such broad terms in planning instruments is no longer sufficient to ensure the operational flexibility that those involved in the freight logistics sector require.

For instance, land that is broadly zoned for ‘industrial’ or ‘employment’ purposes may still ultimately allow the establishment of a consumer bulky goods or even retail facilities near a crucial freight facility, such as a port.

The construction and operation of such a facility can give rise to increased traffic congestion on roads that provide the only access to and from freight facilities. This conflicting land use impedes supply chain efficiency and can often also present safety risks.

The most pressing challenge for logistics is getting stock into stores quickly enough.

MHD JUNE 2020 | 63

DO YOU KNOW AN O U T S TA N D I N G F E M A L E

NOMINATIONS

LEADER IN YOUR INDUSTRY?

NOW OPEN

WOMENININDUSTRY.COM.AU

P R O U D LY P R E S E N T E D B Y

MHD Supply Chain Solutions

SPONSORED BY

MHD FROM ASCI

ASCI BUILDS CAREER PATHWAYS IN SUPPLY CHAIN MANAGEMENT Underpinning the Australasian Supply Chain Institute (ASCI) Professional Accreditation Scheme is a Continuous Professional Development program that allows ASCI to build career pathways in supply chain management to enrich and grow professional supply chain performance and competence.

APICS CERTIFIED SUPPLY CHAIN PROFESSIONAL (CSCP) CSCP is recognised globally as the premier certification for end- to-end supply chain that helps you master the extended supply chain, from organisations’ suppliers through to the end customers. Since its launch in 2006, more than 20,000 professionals in 82 countries have earned the CSCP designation. CSCP covers: • Supply Chain Design • Supply Chain Planning and Execution • Supply Chain Improvement and Best Practices Online Certification Review Class When: Thursdays, 7-10PM (AEST) commencing 9 July 2020 Format: 13 x 3 hour weekly online sessions with a local APICS Facilitator

MHD JUNE 2020 | 65

MHD FROM ASCI

APICS CERTIFIED IN PRODUCTION AND INVENTORY MANAGEMENT (CPIM) Thousands of employers worldwide look for the CPIM designation when making critical hiring decisions. These companies know that CPIM designees have the proven knowledge and skills to strategically streamline operations. Are you ready to distinguish yourself in supply chain management?

APICS CPIM Part 1 - The Basics of Supply Chain Management is our flagship course for those new to APICS study.

Online Certification Review Class When: Tuesdays, 7-10PM (AEST) commencing 7 July 2020 Format: 7x 3 hour weekly online sessions with a local APICS Facilitator APICS CPIM Part 2 Learning System is now reconfigured from four modules into one with one exam. This is a really great improvement to the certification. Topics include: 1. Strategic Management of Resources 2. Master Planning of Resources 3. Detailed Scheduling and Planning 4. Execution and Control of Operations Online Certification Review Class When: Wednesdays, 7-10PM (AEST) commencing 8 July 2020 Format: 13 x 3 hour weekly online sessions with a local APICS Facilitator

APICS CERTIFIED IN LOGISTICS, TRANSPORT AND DISTRIBUTION (CLTD)

ISM CERTIFIED PROFESSIONAL IN SUPPLY MANAGEMENT (CPSM)

Become a recognised expert in the logistics, transportation and distribution fields. Certification demonstrates in-depth knowledge of a broad range of topics to set you apart from your colleagues — proving your high level of knowledge and skills. You’ll be a more valuable asset to your organisation, keeping you and your organization more competitive in today’s global economy.

1. Logistics and Supply Chain Overview 2. Capacity Planning and Demand Management 3. Order Management 4. Inventory and Warehouse Management 5. Transportation 6. Global Logistics Considerations 7. Logistics Network Design 8. Reverse Logistics and Sustainability

The CPSM is globally recognised as the gold standard of excellence for supply management professionals, in both the manufacturing and non-manufacturing sectors. Built on an in-depth analysis of supply management functions across industries, the program addresses the realities of supply management, as well as workplace complexities including globalisation, use of technology, and expanded competencies that procurement and supply chain professionals employ to drive value in their organisations.

CPSM emphasises the major competencies of supply management including: • Strategic Sourcing • Supplier Relationship Management • Category Management • Contracting & Negotiations • Cost, Price & Finance • Risk, Compliance & Social Responsibility • Forecasting & Planning • Product Development • Logistics & Materials Management • Quality & Project Management • Technology Applications • Leadership Essentials A 30-minute webinar featuring the benefits of studying this certification is available for download via the QR Code.

Corporate training is also available by contacting the ASCI National Office on 0439 320 152.

Subscribe to receive the Certification Information Pack today.

CLTD now has its first major update since release and brings with it a number of fantastic changes including entire modules focused on Sustainability and Reverse Logistics.

FREE TRIAL OF THE RISK MODULE The Risk Management content provided in this preview is a sample of the body of knowledge provided in the full version of the learning system. After completing this preview, participants will be able to: • Understand security risks and responses as well as how these differ by country • Use packaging effectively to minimise the risk of damage to goods in transit • Follow a risk management process that helps prioritise risks and determine appropriate and cost-effective responses to them Scan the QR Code to download your free trial today.

66 | MHD JUNE 2020

save the date

23-25 FEBRUARY

2021

23 -25 February 2021

William Inglis Hotel, Sydney Contact: Simon Coburn | simon.coburn@primecreative.com.au

More than a Reach Truck.

A partner.

The new ESR 1000 Series Reach Truck Positioning forks and loads at height can be a challenge. On the new ESR 1000 Series reach trucks, operators work with skill and precision at any height.

Programmable features, Auto Height Select, Xpress Lower™, intuitive displays, one touch controls and camera options all work together to optimise performance and efficiency.

• 2x faster lowering speed with optional Xpress Lower™ • Optimised performance with the Gena® operating system • Operator support with automated assistance and coaching features

Learn how the ESR 1000 Series Becomes Your Material Handling Partner.

Call 1300 323 259 or Visit crown.com crown.com