MHD September 2021

SEPTEMBER 2021

COVER STORY

THE TOYOTA PHILOSOPHY

Toyota Material Handling Australia and TT Logistics forge a new relationship based on shared and time-tested principles

THE DIVERSECO DIFFERENCE

Legal for Trade measurements, data, and how to stop revenue leakage

NAVIGATING SUPPLY CHAIN DISRUPTIONS

C.H. Robinson’s strategies for helping Australian importers

THE RIGHT PERSON FOR THE JOB

Manhattan Associates on Bastian Consulting’s talent for recruiting

ReImagine 5 – 8 October 2021

Elevate APAC is coming soon Be inspired, embrace innovation, value knowledge, get networking and charge ahead as an agent of change and transformation.

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MHD FROM THE EDITOR

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

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

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

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.mhdsupplychain.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.

A TIME FOR OPTIMISM

S

ituated as I am in Victoria, currently undergoing its sixth lockdown, it is feasible I might succumb to a gloomy mood.

But any slide into gloom and doom on the part of this Editor was stopped in its tracks by the good cheer and energy of those I spoke to in the industry this past month. My colleagues and I interviewed some very interesting people and wrote what we hope are some stimulating stories.

Among the stories you’ll find in this month’s MHD is a fascinating analysis of high-level supply chain recruiting at its best. Manhattan Associates’ Keith Hunter, People Director for Asia Pacific, discusses the work Bastian Consulting’s Tony Richter has done recruiting for Manhattan over the years (see page 38).

Tony has spoken eloquently on a range of subjects with MHD before, but having a high-powered third party describe the man and his methods in action makes for a compelling read.

Another article this month features Simon Levy, CEO of the Risk Management Institute of Australasia (RMIA) (see page 29). While sounding a note of caution regarding current and future risks to supply chain, Simon is very optimistic about benefits the Internet of Things (IoT) can bring to the risk management environment. He says conversations with IoT leader Thinxtra – among others – have opened up for him new worlds of possibility in this field.

Elsewhere, you’ll learn of C.H. Robinson’s work increasing numbers of chartered flights to Australia to compensate for the drop-off in passenger flights carrying cargo (see page 48). Andrew Coldrey, C.H. Robinson Vice President Oceania, says that the company has been working hard to ensure that the demand for consumer goods this Christmas is met.

And if that note of Christmas cheer doesn’t engender a sense of optimism, not only about the people in the industry, but the solutions and goals they’re working towards – then I can only recommend that you read further through this month’s feast of supply chain ideas.

So while I appreciate the difficulties of lockdowns – both for people personally and professionally – I am personally grateful that part of my job description is talking to articulate, energetic, and optimistic people.

With forebearance, skill – and a bit of luck – we’ll emerge from these lockdowns a stronger industry than ever.

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.

Edward Cranswick Editor edward.cranswick@primecreative.com.au

MHD Supply Chain

MHD SEPTEMBER 2021 | 3

SEPTEMBER 2021

ISSUE #8 VOLUME 52

THIS ISSUE COVER STORY

10 3PL warehousing specialist aligns with TMHA

SUPPLY CHAIN 08 Implement route optimisation at the drop of a hat 21 Is the circular economy primarily a transport-based economy?

25 Why Körber is the perfect fit for

10

COVER STORY

44

Adore Beauty 29 How IoT can boost risk management 33 How Bastian recruits top people for high places 48 Navigating the flow-on effects of supply chain disruption

INDUSTRIAL PROPERTY 44 Embedded solar networks: the future of I&L estates?

MHD SUPPLY CHAIN SOLUTIONS

MATERIALS HANDLING 36 Why Legal for Trade equipment matters

SEPTEMBER 2021

SEPTEMBER 2021

38 The future of tracking and tracing with SICK 46 Getting fit for the supply chain evolution

COVER STORY

THE TOYOTA PHILOSOPHY

Toyota Material Handling Australia and TT Logistics have forged a new relationship based on shared and time-tested principles

WAREHOUSING 17 Australian company Biogone leading

THE DIVERSECO DIFFERENCE

Legal for Trade measurements, data, and how to stop revenue leakage

NAVIGATING SUPPLY CHAIN DISRUPTIONS

world in biodegradable plastics

C.H. Robinson’s strategies for helping Australian importers

THE RIGHT PERSON FOR THE JOB

46 Laying the foundation for automated

Manhattan Associates on Bastian Consulting’s talent for recruiting

warehousing

0 or visit crown.com

50 Conquest’s flexible warehouse cleaning

DEPARTMENTS AND REGULARS

ON THE COVER

06 Industry news

Two Toyota-related companies have forged a relationship underpinned by their commitment to two key Toyota concepts.

52 Property Focus

50

54 Associations 61 Products 62 People on the move MHD SEPTEMBER 2021 | 5

MHD NEWS

Buyers battle for rare Qantas portfolio

Q

antas is expected to raise more than $500 million through the sale of several major Mascot land holdings in South Sydney’s booming industrial precinct.

Investors and developers will compete over the near 14 hectare space for freehold sale or 99-year lease.

The portfolio includes a longterm sale and lease back of Qantas’ distribution centre (DC), positioned on a 38,920 sqm prime industrial land holding.

The DC would provide an income profile for an initial 10-year term with another two five-year options.

Colliers is advising Qantas on its property strategy and will manage the one-month expressions of interest campaign which starts on August 2.

Michael Crombie from Colliers says the properties would have a potential development end value of $2 billion.

“Located within the heart of Mascot, immediately adjacent to the Sydney Kingsford Smith Airport Precinct, the development sites

totalling 98,645sqm offer an unprecedented opportunity to develop a super core, multi-level industrial and logistics estate and institutional grade mixed use development of commanding scale, and become one of the largest industrial landlords within the South Sydney market,” Michael says.

Qantas has posted a $1.47 billion loss in the first six months of this financial

year because of border closures.

Qantas Group chief financial officer Vanessa Hudson says that the money raised from the land sales will be used to pay down debt.

“In the current climate we’re obviously looking more closely at what is core and what is non-core, and the reality is that we don’t need this land for any of our long-term strategic goals,” Vanessa says.

Investors and developers will compete over the near 14-hectare space.

FedEx Expands Asia Pacific Air Network

F

our new flights are set to offer Asia Pacific businesses more opportunities to export to major cities in the US and Europe.

The intercontinental flights each have a weekly capacity of 1400 tonnes and provide greater access to APAC customers on the trans-Pacific, IntraAsia, and Europe lanes.

The express transportation specialist says the expansion is off the back of continued e-commerce growth to meet customer demand for enhanced service.

In 2020 alone, online retail sales in APAC generated approximately $3.35 trillion, accounting for more than 60 per cent of global e-commerce sales.

6 | MHD SEPTEMBER 2021

Over half of online shoppers in APAC made cross-border purchases.

Kawal Preet, president of the Asia Pacific, Middle East, and Africa (AMEA) region at FedEx Express, says APAC is emerging as a mega marketplace with merchandise exports forecasting a strong rebound of 13 per cent Yearon-Year in 2021.

“FedEx is focused on meeting the evolving needs of our customers, and this network enhancement, further demonstrates our strong commitment to supporting our customers and this region to recovery,” he says.

“We are seeing the overall demand for exports from Asia Pacific fast recovering to pre-COVID levels.”

Two of the new flights will depart from the FedEx APAC Hub in Guangzhou, China, to the US five times a week.

The third trans-Pacific flight connects Beijing to the FedEx World Hub in Memphis, U.S. And APAC exporters will be more connected to Europe, with Boeing 777 flights from China and Japan leaving every week.

“These additional flights will empower our customers to harness the full potential of cross-border commerce, forging stronger intraAsia, trans-Pacific and Asia-Europe trade flows, as economies across Asia Pacific continue to rebound.”

Tim Symons Packaging Manager, Tooheys

Supply Chain of the Future Dematic AGVs help keep the beer flowing at Tooheys Brewery.

When Lion Beer Australia started thinking about what its supply chain of the future might look like, they knew they needed to improve productivity to keep up with demand, and adopt processes and technologies that would deliver optimum services for Lion’s people, brands, production facilities and suppliers.

The fleet of Dematic AGVs at Tooheys are helping achieve just that — giving Lion dependable seamless performance for its end-of-line process, keeping product moving accurately and safely to the end consumer.

See the video and read the full story at Dematic.com/lionbeer

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MHD SUPPLY CHAIN

ROUTE OPTIMISATION AT THE DROP OF A HAT MHD speaks with Talal Kanj, National Warehouse & Logistics Manager at KING, and Adiona Tech CEO Richard Savoie, about how route optimisation is helping to keep the leading furniture designer on top of its game.

L

eading Australian furniture designer, manufacturer and retailer KING got its start over 40 years ago, and from the outset was dedicated to designing furniture in its own unique way, with its own distinct imprint.

But the spirit of innovation at KING isn’t reserved to its design processes, says Talal Kanj, National Warehouse & Logistics Manager at KING. It’s an attitude that permeates the entire organisation – including its attitude to distribution and customer service.

It’s that attitude that prompted it to re-think its delivery and route optimisation capabilities during the COVID-era, Talal says, and to foster a relationship with Adiona Tech.

“Until recently our route planning was based on manual inputs,” Talal says. “This had been done through Google Maps, and before Google maps it was based on personal understanding of geographical areas – an old school understanding of what was needed in the north, south, east, and west.

But then all of a sudden Adiona came along and that all became a thing of the past – so instead of having a person search an area to allocate deliveries, it’s become automatic with Adiona’s route optimisation platform. Instead of getting seven deliveries on a truck per day for our customers, we are getting 10 or 11 deliveries on trucks and maximising our capacity on each delivery route.”

In keeping with its proactive approach, Talal says that KING conducted market research and engaged a consultancy to trial a number of route optimisation systems. But it was clear that Adiona stood out from the crowd.

“Adiona just brought out the best in the simplicity of its integration with our API system, and it was also just so user-

8 | MHD SEPTEMBER 2021

KING continues to grow its international presence, and Adiona is ready to support KING all the way. friendly,” he says. “When the Adiona team came to the table they were able to make a few changes that better reflected the information we needed on tracking order numbers, so that the tracking system related those numbers back to our system to provide easy visibility.”

By using Adiona’s platform to optimise KING’s route planning – which delivered great benefits on that criterion alone – Talal says that his team now also has much more time to focus on customer service. “It’s allowed us to go ahead and call more customers, follow up on particular service levels, and not have to worry so much about where a truck needs to go or organising its next drop off,” he says. “Recently we have been much more able to focus on our customers, and they are the core of our business.”

Talal adds that the introduction of Adiona has made life much easier for KING through the ongoing COVID-saga.

“Last year we went through a period where we had to get a lot more people and resources in to accommodate the volume of customer management, and the re-organising of delivery routes when there were changes to lockdowns and restrictions,” he says. “But since introducing Adiona, we have been able to drop in and swap things around at the drop of a hat. It just uploads new information by itself and re-optimises the route, which gives our team more time to call customers to update them on delays, or earlier deliveries, or explain updates to them surrounding state restrictions. It’s very easy to take a drop-off that’s been interrupted and put a new job on to replace it. Previously,

MHD SUPPLY CHAIN we had to do all of that manually.”

Richard Savoie, CEO and Co-Founder of Adiona Tech, says that he was excited to work with KING because the company’s drive to improve its technology was all about delighting its customers – which Richard sees as one of the key end-targets of route optimisation.

“Another thing that was immediately exciting was seeing that they moved really fast,” Richard says. “Talal, his team, and everyone else across the business was willing to be very clear and concise about what it was they wanted to achieve, and the quickest steps to get there. It wasn’t a protracted process of figuring out what they wanted to do – they knew what they wanted to do.

“You combine that with their collaborative spirit, their ability to come to the table and work with us proactively to solve a problem – that willingness indicated early on that this would be an excellent partnership for Adiona.”

That clarity of purpose and collaborative spirit was well in evidence during the implementation process, which Talal says took only about two months from conception through to execution.

“

We’re super excited about the global plans KING has, because we’re a global company too ... We built our platform to be what we call ‘Global Day One’ or GD1. That means it’s instantly applicable overseas.

”

A Logical Group Company

Managed Supply Chain Services

With COVID-19 forcing people to work remotely, Talal established a core team – “system champions” as he calls them – that worked intensively with Richard and Adiona to get trained up and have the technology implemented into day-to-day operations as swiftly as possible, thus taking pressure off the rest of the KING team. “Two months is not bad,” Talal says. “Compared to some of my previous jobs, where system implementations have taken up to a year.”

And now that Adiona’s system is implemented, it will be applied across new geographies as KING continues to expand its showroom presence around the globe – from Singapore, Malaysia, and China to Canada and the United Kingdom. KING’s international deliveries can be managed via Adiona by someone based in Australia.

“We’re super excited about the global plans KING has, because we’re a global company too,” says Richard. “We built our platform to be what we call ‘Global Day One’ or GD1. That means it’s instantly applicable overseas.

“Let’s face it, there are plenty of things for Talal and his team to worry about if they’re going to open showrooms overseas. Our aim is to not be one of those things.” ■

cological .com.au

MHD COVER STORY

3PL WAREHOUSING SPECIALIST ALIGNS WITH TMHA Two Toyota-related companies have forged a relationship underpinned by their commitment to a pair of key Toyota concepts. MHD finds out more.

A

n alignment of business principles and actions has influenced two Toyota-related companies to forge a successful working relationship.

Third-party logistics (3PL) specialist, TT Logistics (Australasia) Pty Ltd, has turned to another Toyota Group company to supply material handling equipment: Toyota Material Handling Australia (TMHA).

The relationship in Australia was forged more than 25 years ago around shared principles within the Toyota Group, including Kaizen – the process of continuous improvement

10 | MHD SEPTEMBER 2021

– and the philosophy of the Toyota Production System.

The Toyota Production System – established over many years – is based on two concepts: “jidoka” (loosely translated as “automation with a human touch”), wherein a problem occurs the equipment stops immediately, thus preventing defective products from being produced; and the “Just-in-Time” concept – in which each process produces only what is needed for the next process in a continuous flow.

Both TT Logistics and TMHA adhere to these ways of doing business.

TMHA uses the Toyota Production System to ensure only the highest levels of manufacturing are employed in making its equipment, ultimately resulting in handling machinery that stands the test of time, as TMHA South Australia Area Sales Manager, Derek Baxter, explains: “Our reputation for legendary reliability is one of the key benefits of the Toyota Advantage.”

“Toyota’s range of equipment is developed using Toyota’s advanced manufacturing technologies and built to the same exceptional standards of quality, durability and reliability as Toyota’s

MHD COVER STORY

TMHA’s equipment stands out for quality, durability, and reliability.

TMHA and TT Logistics are both guided by the philosophy of the Toyota Production System. automotive products,” he adds.

TT Logistics operates a vast fleet of TMHA equipment in both its Melbourne head office and Adelaide sites.

Most recently it acquired two new Taylor-Dunn Stockchasers and three new Toyota RRE160M reach truck forklifts with 8500mm lift masts fitted – in order to meet the requirements at key-client Electrolux’s new warehouse.

The Adelaide site also uses Toyota 8FBE18 and 8FBN25 counterbalance forklifts, plus Toyota OSE120CB order-picking trucks.

TT Logistics Senior Manager, Operations, Nick Klironomos, estimated that the Adelaide site has up to 15 units of TMHA equipment and the Melbourne site in the vicinity of 40.

TT Logistics Senior Manager, Business Development, Patrick Ingenegeren says TT Logistics applies the full extent of the Toyota Production System methodology to ensure operational excellence.

“We implement the Toyota Production System methodology – which TMHA also uses to manufacture its equipment – in a

logistics environment,” Patrick says.

“That’s just one of the things we bring to the table.”

“By identifying and removing waste from each process, and/or activity, we are aiming for the most optimised and efficient operating methodology,” he says. “Our Kaizen initiatives provide tangible cost-savings, an improved customer service experience, and higher safety standards.”

Established in 2008, TT Logistics is a subsidiary of Toyota Tsusho Australasia, an affiliate of the Toyota Tsusho Corporation, which was founded in 1948 as a trading and supply-chain specialist of the Toyota Group.

Toyota Tsusho’s history in Australia dates back to 1971. A diversified materials trading and logistics company, Toyota Tsusho specialised

From left: TT Logistics senior manager, Business Development, Patrick Ingenegeren, TT Logistics senior manager, Operations, Nick Klironomos, Toyota Material Handling Australia Area Sales Manager Derek Baxter.

MHD SEPTEMBER 2021 | 11

MHD COVER STORY “We strive to enhance our customers’ supply chain by valueadding through excellence in 3PL, and adhering to our business principles of TPS, quality, flexibility, visibility, and innovation,” he says. “This does not mean we are at face-value more-expensive. We are actually a very competitive provider, and yes, we consider ourselves to be the best, which is a common reality throughout the Toyota Group.

“Again, we see things coming down to value, because if you can solve a client’s logistics challenges, you become credible and have – or can establish – a trusted, professional, relationship with that customer. Then, the cost becomes less important,

Toyota machines are equipped with sensors that help protect drivers and record data. in an expansive range of international trading services including supply chain management, intermediate goods processing across a multitude of industries including metals, chemicals, automotive parts and accessories, and logistics & supply chain management.

TT Logistics was created to grow beyond the internal (automotive) structure of Toyota Tsusho and is currently the only independent 3PL warehousing specialist within the Toyota Tsusho Group, providing quality contract logistics to Australian and multi-national customers.

It’s the quality-of-service that differentiates the business, says TT Logistics’ Patrick Ingenegeren.

“Any business can have a shed and a forklift fleet, but we have a unique culture that we know works better,” he says. “It’s not what we do but how we do it, through providing our customers an improved experience across our people, our processes, and our culture.”

“As part of the Toyota Group, Kaizen is in our DNA and we challenge the norm and the standards each and every day,” Patrick continues. “That’s how we get to work with iconic customers such as Electrolux, with whom we proudly partner to support their local manufacturing of ovens and stoves at their Dudley Park facility.”

Patrick says that although TT Logistics is small compared to some of its competitors, it is more agile and has an advantage when it comes to culture and processes.

12 | MHD SEPTEMBER 2021

Toyota’s 8FBE 3-wheel counterbalance forklift in action.

MHD COVER STORY

TMHA went to TT Logistics’ Adelaide site to make an informed assessment of their equipment needs. because it actually comes down to value. For example, one of our largest customers is Electrolux and they were leasing a 10,000 square-metre warehouse. As part of our Kaizen culture, it was suggested that a new warehouse be built on the Electrolux site to save in lease and transport cost.

“It was quite the exercise to move their operations to the new warehouse, though,” says TT Logistics’ Nick Klironomos. “Over the Christmas and New Year period we moved sixand-a-half thousand pallets in just nine days.”

TMHA’s Derek Baxter went to TT Logistics’ Adelaide site in order to assess the business’s system-ofwork and make accurate and efficient material-handling equipment recommendations. “Derek came on site particularly to see the Electrolux business because we were interested in some new stockchasers,” says Nick. “Derek got a really good understanding of what we do and suggested some variations to produce a result that was most suitable for us, including some Toyota reach trucks that can extend to the required 8.5-metre-high levels in the new Electrolux warehouse, which also feature cameras.

“Derek also recommended TMHA’s

I_Site telematics system, which helps fleet and logistic managers to understand vehicle status, driver performance and overall productivity in their material handling operations,” Nick continues. “We have had the I_Site system for the last three or four years and it has been valuable in that it lets us track the efficiency and safety of our operators and Toyota machinery. It’s a very important feature because it has helped us manage our safety in terms of the operational checks. And it is also customisable – for example, we programmed a question which was ‘Have you wiped-down the machine yet?’.”

Nick says since the Toyota machines have sensors on them, if they knock something, a report is captured and the machine is operationally limited until a supervisor can go to it, assess any damage, and capture the incident.

“We want everyone to report any incidents or accidents,” he says. “And previously that was difficult to capture – but now with I_Site telematics if a machine gets knocked, or worse, there’s an automatic record so you’re not relying on the operator to disclose it.

“Moving-forward, all our Toyota forklift equipment will have the I_ Site capabilities.” ■

For more information freecall Toyota Material Handling Australia on 1800 425 438 or visit online at www.toyotamaterialhandling.com.au

For TMHA and TT Logistics, the quality and safety of equipment is paramount.

MHD SEPTEMBER 2021 | 13

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MHD WAREHOUSING

AUSTRALIAN BUSINESS WORLD LEADER IN BIODEGRADABLE PLASTICS Dr Ross Headifen and John Mancarella, Partners at Fieldtech Solutions & Biogone, have pioneered the use of biodegradable plastics across numerous industries – including supply chain, warehousing, and logistics. They share their journey towards sustainability in plastics.

T

wo entrepreneurs, Dr Ross Headifen and John Mancarella, say their Australian-born business, Biogone, is leading the world in making everyday single-use plastic recyclable. “Once the plastic can no longer be recycled, it can be disposed to landfill where it will biodegrade approximately 90-plus per cent faster than conventional plastics,” Ross says.

In 2008, Ross sold his company that supplied – among other products – single-use plastic equipment for groundwater sampling and monitoring.

Ross says that while groundwater contamination was being cleaned up, it came at the cost of making piles of plastic that would still be around in 300-500 years. “This drove me to search for more responsible ways to make this equipment, and find a better solution for plastic waste,” he says.

Following the sale, Ross and his wife spent two years volunteering in Tanzania putting water wells in rural villages. “While there, we noticed a large amount of plastic bags and bottles with no infrastructure to manage the plastic pollution,” he says.

After returning home, Ross helped foster one of the biggest community litter collection volunteer groups in Melbourne – called BeachPatrol – to remove plastic litter from beaches.

“I spent the next two years researching and reading up on plastic and relevant scientific literature,” he says. “I studied many technologies, including oxo-degradable solutions

and compostable plastics made from plants – but they had limitations, both in terms of processing requirements and sustainability considerations, which left me unsatisfied.”

LANDFILL BIODEGRADABLE PLASTIC Still engaged in his research in 2010, Ross says he came across a small footnote in the literature that mentioned a US technology able to produce plastic that would biodegrade in landfills.

“I was intrigued and went down the rabbit hole to find out more about the company,” he says. “I discovered they

were using a special inert organic additive which was added to the raw plastic mix. The additive was a food source for naturally occurring microbes in a landfill.”

The reason plastic cannot normally biodegrade, Ross says, is due to the molecular bonds in the polymer chain being too strong and stable. Because of this, microbes cannot normally get access to the atoms and their energy.

“But when this food additive is added to plastic, the microbes seek out the food and start to digest it,” he says. “The enzymes they secrete in that process break down the surface of the plastic,

Biogone’s Dr Ross Headifen, Partner; John O’Connor, Senior Sales Manager; and John Mancarella, Partner.

MHD SEPTEMBER 2021 | 17

MHD WAREHOUSING

Biogone’s Hand Stretch Wrap Rolls. allowing microbes to access the top atoms and their energy for food. This process continues until the plastic has biodegraded all the way through. While it’s not as fast a biodegradation process as with paper or cardboard, it does offer other benefits.”

TECHNOLOGICAL BENEFITS A key benefit, Ross says, is that this biodegradation process can occur in landfills and does not require composting conditions. “Currently, in Australia, approximately 84 per cent of plastic is disposed to landfill, so being able to provide a solution catering to where most plastic is disposed is a large advantage,” he says. “It means consumers can continue to dispose of their plastic waste – requiring very little behaviour change nor huge investment from the government.”

The additive used, Ross says, does not change the properties of the plastic for any product design considerations – meaning the plastic is fully mainstream recyclable; it has the same recyclable properties as conventional plastics.

“And because only a small amount of the additive is required, it can be mixed in with conventional raw plastic pellets just as a colourant would be added in,” he says. “This means the product manufacturers can use the additive to make biodegradable versions of their products without having to change any of their machinery.”

With this in mind, Ross says that he had landed on the best solution available for designing bespoke products and tackling head-on the issue of single-use plastics.

FIELDTECH SOLUTIONS & BIOGONE After three years of testing, sampling, and developing prototypes, Ross teamed 18 | MHD SEPTEMBER 2021

up with John Mancarella to start a new company, FieldTech Solutions, in 2012.

Initially, they focused on supplying landfill-biodegradable plastic equipment to the contaminated land industry – but it wasn’t long before they expanded their range.

“Many of our products were world firsts,” says John. “It caused considerable discussion within the industry, with many asking why this hadn’t been done before.

“As the company grew, we realized that to be fully responsible we had to consider the packing materials we were using to ship our own products, which meant developing landfillbiodegradable packaging and shipping materials,” he says.

The idea kept snowballing and the pair continued to expand their product range.

“Soon after, we established ‘Biogone’ as our new trading name – targeting our company to provide the logical solution to everyday plastics,” John says.

A BOON FOR SUSTAINABLE WAREHOUSING Although their plastics have innumerable applications, Ross says that Biogone does cater specifically for logistics, warehousing, and 3PL companies. “We do stretch wrap, packing tape, pallet caps, plastic trappings, stick-on envelopes for enclosed documents and invoices, and so forth,” he says. “All of these products are planned for biodegradability and to be recyclable.”

John says that Biogone’s plastics are uniquely appealing in the context of sustainable supply chains and warehousing – both because of their marketing value, and because they help companies stay ahead of the curve in

terms of corporate best practice and environmental regulatory compliance.

“I think the main benefit for business is it’s marketable,” John says. “You can tell your customers: ‘This is what we’re doing, and how we are being conscious of the environmental impacts that disposable plastics have on the world.’

It lets your customers know that you are reducing your environmental footprint, and I think that’s a really strong marketing angle to push. Because many big businesses have sustainability as part of their core values, and this helps them actually achieve their objectives, rather than just talking about achieving them.”

With Australia’s 2025 National Packaging Targets fast approaching, which – among other things – stipulate a requirement that 100 per cent of packaging be reusable, recyclable, or compostable, John says companies can meet those requirements now by switching to Biogone products.

The Targets do not require the use of biodegradable plastics, but as environmental concerns grow, standards mandating their use – whether locally or internationally – may well be around the corner. With ever closer scrutiny on plastics sustainability, Biogone presents the industry with an obvious question: Why not act now? ■ For more information, visit www.biogone. com.au

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MHD SUPPLY CHAIN

IS THE CIRCULAR ECONOMY PRIMARILY A TRANSPORT-BASED ECONOMY? In order to create a sustainable, circular economy, the first priority is to transform the way we think about and manage transportation, explains Raghav Sibal, Managing Director, ANZ, Manhattan Associates.

M

ore informed and demanding than ever, Australian consumers are now imposing new expectations on brands in the form of environmental and sustainability credentials. With the boom of e-commerce and subsequent product returns challenges, the transition to a circular economy – one that is systematically designed to benefit both the economy and the environment – is becoming even more important. The final delivery of this sustainable model, however, is largely based on the efficiency and innovation of transport networks.

RESPONSIBLE CONSUMPTION VERSUS TRADITIONAL MODELS It is widely recognised that the consumer-centric society we inherited

The consumer-centric society has driven negative externalities like climate change.

following the industrial revolution has been largely responsible for the climate challenges we are facing today. This system must now give way to a more sustainable model, organised around the concept of transition from a linear to a circular economy.

This transition is governed by one key word: responsibility. Over the last century, but particularly since the turn of the millennium and the advent of the World Wide Web, consumer appetite has become a meaningful and somewhat aggressive force, thanks to the unprecedented power conferred by the digitalisation of commerce and the capacity for consumers to interact directly with brands.

Brands can no longer be satisfied with just selling a product. They must also provide information that goes beyond simply the price of the item, as it is on the basis of this information that modern consumers make their choices. Today, consumers are thinking less about whether they can afford an item and more about evaluating whether or not the brand aligns with their own individual values.

Responsible consumption, therefore, begins with an informed and reasoned decision that is not only guided by the desire to acquire the product, but also a synergy of shared brand-consumer values. In order for brands to better align their values with consumers’, environmental and sustainability credentials are a must.

Raghav Sibal, Managing Director, ANZ, Manhattan Associates.

CREATING NEW EXPERIENCES BEYOND JUST THE PRODUCT This transformation is reflected in a greater sensitivity to the various aspects of a product’s life – and increasingly in the potential for a second life, too.

This can be seen in the dynamism of the second-hand market, with the success of sites such as Amazon and Alibaba and a renewed interest in the repairability and reuse of products.

Furthermore, it is estimated that 30 per cent of items purchased online are returned. With the uninterrupted growth of e-commerce, returns weigh heavily on brands (and consequently consumers) when it comes to the question of carbon footprints and environmentalism.

So, what does this mean for brands?

There is now a pressing need to inform consumers about the environmental impact of a product and its delivery.

MHD SEPTEMBER 2021 | 21

MHD SUPPLY CHAIN Increasingly, however, there is also an important need to innovate and create new scenarios that guarantee a brand’s eco-responsibility without eroding already over-squeezed margins.

With this major impact of returns on the environment, it is up to Australian e-commerce platforms now to innovatively reduce the economic and ecological impact of returns. Retailers can start by taking inspiration from overseas companies. French e-commerce platform Veepee, for example, has created a new customer-to-customer return service – called Re-turn. Instead of sending the product back to the platform to be put back on sale, the customer offers it directly to other customers. Meanwhile, Amazon is considering offering customers the ability to return products to drivers at the same time their new product is delivered, as a step-change in its reverse logistics process.

TRANSPORTATION IS THE COMMON DENOMINATOR Whether we are talking about repairing a product, putting it back into circulation in the second-hand market, or returning it after an online purchase, in essence we are talking about transport and transportation networks.

Managing the entire lifecycle of products means managing their physical reinjection into a circular, rather than linear, economic model.

In order to further these new strategies that underpin the circular economy it

To create a circular economy, the entire distribution process must be transformed.

22 | MHD SEPTEMBER 2021

There is a pressing need to inform consumers of the environmental impacts of products and their delivery. is therefore necessary to put in place innovative logistics solutions.

These solutions must not only reduce the carbon footprint on the upstream part of transport – the part that customers don’t see, between suppliers and the warehouse – and the downstream part – delivery – but also offer more solutions to customers that fundamentally promote more sustainable, environmentally-aware action on the parts of transporters and consumers.

However, innovative solutions themselves can often create new challenges, as they lead to a much more dispersed transport network than that which shippers are used to dealing with in B2C deliveries – not to mention the multiplication of collection points, the unpredictability of delivery orders, and

the increase in unit order flows.

These factors make it more difficult to manage transport in an environmentally responsible way while controlling costs. There is, therefore, a risk that the circular economy might produce the opposite effect to that which it was created to solve. To avoid this, we need to be able to rely on a more dynamic delivery network that is capable of maximising consolidation opportunities – using smarter, environmentally friendly means of transportation, promoting collaborating with delivery start-ups and industry disruptors, and offering optimisation tools capable of taking all these factors into account.

To offer consumers a truly circular economy, first and foremost we need to transform the way transportation is thought about and managed. ■

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MHD SUPPLY CHAIN

Adore Beauty is one of Australia’s most celebrated online beauty retailers.

WHY KÖRBER IS THE PERFECT FIT FOR ADORE BEAUTY With more than 250 brands in its portfolio, the fast rise of online sales, and customers wanting more choice, Adore Beauty – one of Australia’s leading online beauty retailers – deployed Körber’s award-winning Warehouse Management Solution across its fulfilment operations.

A

s one of Australia’s greatest e-commerce success stories, Adore Beauty’s initial public offering (IPO) was the most valuable, as well as the most highly anticipated, float of last year.

Founded by beauty advocate Kate Morris in 1999, Adore Beauty was the first online beauty retailer in Australia, an operation that started in a garage in Melbourne. As a leading e-commerce retailer, Adore Beauty is known for its ability to offer its highly engaged active customer database convenient and fast same-day despatch times.

Adore Beauty offers free express delivery on any order over $50, and free standard delivery for any order under that price mark. The retailer also offers same-day despatch for any order that’s placed before 4pm.

This means that anyone within Victoria, South Australia, New South Wales and Queensland metro areas are

likely to receive their order next-day. In 2017, when Sarah Mullen commenced her role as Chief Operations Officer at Adore, she was looking at the sales and stock holding projections for the next 12-24 months and realised very quickly that Adore Beauty needed to prepare themselves for significant scale.

According to Sarah, “Adore Beauty is very modern and fast-paced, we knew we needed a Warehouse Management System (WMS) that represented us and allowed us to meet this increase in demand as well as grow as quickly as we were.”

Adore Beauty had two major requirements for a WMS – the ability to customise and to increase its sustainability practices.

In terms of customisation, it was important for Adore Beauty to be able to make its own tweaks without having to rely on other people. Körber’s WMS allows Adore Beauty to make annual

Jamie Sterling, Director of Sales APAC at Körber Supply Chain Software. or half-yearly upgrades without affecting the customisation of their system. Sarah found that this would be problematic with some of the other WMS offerings on the table.

MHD SEPTEMBER 2021 | 25

MHD SUPPLY CHAIN

Sarah Mullen, Chief Operating Officer at Adore Beauty.

Körber’s WMS works out the smallest box size for orders, saving Adore roughly 12 tonnes of cardboard per year.

SUPPORTING A SUSTAINABLE FUTURE Growing from a small self-run beauty store to an impressive team of 170-plus people, a consideration of its environmental impact has always been important to Adore Beauty.

Since 2018, the company introduced a range of sustainable development goals and environmental initiatives that have helped it push for a sustainable future.

Within its fulfilment operations, Adore Beauty wanted to explore ways it could reduce the amount of cardboard wasted with customer orders, but didn’t know how to make this possible.

As a result of deploying Körber’s WMS, Adore Beauty introduced volumetric box sizing in its warehouse. The WMS works out the smallest box size that the items will fit into for each order. This process saves Adore around 12 tonnes of cardboard a year.

“We used to ship 80 per cent of our orders in the smaller box, but now we’re shipping half of those orders in the new small box. This has resulted in us saving significant amounts of cardboard annually,” Sarah says.

After introducing Körber’s WMS, Adore Beauty’s picking staff now use RF guns to fulfil

Adore Beauty’s reputation for excellence in beauty products meant Körber were excited to work with them.

26 | MHD SEPTEMBER 2021

“

Körber gave us the capacity to scale, grow and manage volume.

”

orders. “We were picking from paper pick lists.

We used to print out an A4 piece of paper for every single invoice, and on top of that would be a pick slip. Sometimes this would be ten pieces of paper per pick round,” Sarah says.

Sarah is proud to report that the warehouse picking process is now completely paperless.

THE CAPACITY TO SCALE AND GROW As well as significant benefits on the sustainability front, Körber’s WMS has delivered impressive efficiency gains for Adore Beauty.

“We now weigh all orders before they are sent out. Previously we had to manually pull out every item and scan what was in it to declare it ready to be sent. Now the software knows that all those items should weigh a certain amount, so it can simply scan and weigh the box and it’s good to go. This takes a matter of seconds and means we’re picking and packing a lot faster,” Sarah says.

Shortly after implementing the new WMS, Adore Beauty moved into a new warehouse facility in Melbourne. “Körber gave us the capacity to scale, grow and manage volume” Sarah says.

BOLD AMBITIONS In terms of the feedback from the team at Adore Beauty, the implementation has been great for morale and staff retention.

“Sustainability and the environment are very important to all of us at Adore. Our customers and our team have been telling us what they wanted for years and thanks to the capabilities that Körber gives us we can now do that,” Sarah says.

Whether that’s robotics, automation or moving to a multi-site operation, Sarah is confident the Körber WMS will continue to deliver and help the retailer solve supply chain complexity. ■

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MHD SUPPLY CHAIN

HOW IOT CAN BOOST RISK MANAGEMENT Simon Levy, CEO of the Risk Management Institute of Australasia, talks about his education on IoT, and why IoT deployments – such as those offered

by Thinxtra, the IoT Telco – will become ever-more important from a risk management perspective.

S

imon Levy, recently promoted to CEO of the Risk Management Institute of Australasia, (he has been with RMIA for over five years) says that the Internet of Things (IoT) is becoming an essential part of the risk management conversation with respect to supply chains.

IoT asset tracking solutions, for shipments or industrial packaging products – such as containers, cages, IBC, kegs and so forth – can provide essential real-time information about their location and their condition, such as temperature, humidity, shock, fill levels and much more.

RMIA, which is the leading professional body for risk managers in the region, provides education, thought leadership and is, Simon says, a body to which all risk managers should belong: “If you’re a risk manager, you should become a member of the RMIA in much the same way that if you’re a certified practising accountant, you’ll be a member of a CPA,” he says.

Simon has been in the job for a little over half-a-year, and sees part of his new role as expanding RMIA’s vision – pushing for a seat at the table in broad policy discussion and highlighting the important trends and technologies that impinge on the risk management domain.

And it is in this connection that the importance of IoT has become front-of-mind for Simon as a means of guarding against the major risks to supply chain today.

He says that although IoT has been around for years – and some countries, like China, are way ahead in terms of its deployment compared to Australia – it hasn’t been enough

a part of the conversation around risk management and supply chain.

“Working with and talking to Thinxtra really opened up IoT for me in terms of its risk management potential in a supply chain context,” Simon says. “What I’ve learnt from talking to Thinxtra – who are real leaders in IoT – and others is that as supply chains become faster and more interconnected, organisations require more real-time data and greater transparency for their supply chain.

And that’s where IoT comes in, by providing the capacity to track assets, maintain visibility over the chain of custody, and so forth.”

MAJOR RISKS FACING SUPPLY CHAIN TODAY Simon says that the major risks facing supply chain today arise from either physical processes – cyber risks in particular – or from the internal human side.

“From a pure supply chain perspective, there’s various risks that present themselves,” he says. “Most of them are operational, and if we conceptualise it relatively simply it’s about either supply, or processes, or demand. All of these were being shaken up anyway but have been brought dramatically forward by COVID-19 and the changes it has wrought.”

The risks involved with having suppliers too readily disrupted, or processes insufficiently adaptable to changing circumstances, or wildly fluctuating demands – these are all internal, Simon says.

On an external level, he says that there are also legislative and regulatory compliance

requirements to keep on top of.

“Some organisations are choosing proactively to voluntarily comply with industry best practice – because best practice today might be a compliance necessity tomorrow,” he says.

These supply chain specific risks are overlaid, Simon says, with all sorts of corporate risks that affect any organisation – supply chain or otherwise.

“All organisations face risks in terms of IT exposures, HR and people risks, financial risks – where the money is coming from, how leveraged they are, loan repayments, credit market situations – and much else besides,” he says. “In a sense these are separate to their supply chain exposures, but they obviously still have an impact on an organisation’s overall risk profile.”

Returning to supply chain, Simon says that the emerging risk perspective has been greatly altered by the COVIDand post-COVID situation. “What we’re seeing as a result of the pandemic are shorter and more localised supply chains,” he says. “We’re also seeing a rationalisation of suppliers – by which I mean insolvencies among some smaller suppliers, as well as consolidation. We’re also seeing continued cyber-attacks, constraints on air cargo, and the risks associated with moves towards multi-modal solutions. All of these are either here or emerging and are forcing organisations to rethink the manner in which they manage and operate.”

IOT AND THE APPETITE FOR RISK The benefits of IoT are obvious in relation to these risks, Simon says.

More accurate real time information MHD SEPTEMBER 2021 | 29

MHD SUPPLY CHAIN

IoT provides more accurate real time information for supply chains.

– with the attendant capacity to be agile and adapt to an uncertain world – is clearly a plus.

“But in order to provide a balanced perspective, I think we must be aware that IoT does introduce its own operational risks – around trust as well as compliance concerns,” he says. “With more data, there are more links in the chain which may be disrupted, there are greater security and privacy risks, and then risks associated with who owns what in terms of intellectual property throughout the chain.

“Like every adaptation, there are upsides and downsides from a risk management perspective,” Simon says. “It’s about tradeoffs and making informed decisions about those trade-offs for your organisation. But it’s impossible to set aside the great benefits of IoT in terms of providing an integrated and standardised approach to supply chain data. With that data-transparency, you can more easily tell the story of your product, with proper data governance and traceability.”

A salient example of how IoT can add major value is in the food industry, with improved visibility over the ‘Farm to Fork’ chain. If there is a food mishandling issue – improper refrigeration leading to contaminated meat, for instance – then IoT can be a real safeguard. “Without a doubt IoT helps in this instance, where every link in the data chain is backed by governance and traceability,” he says. “That’s a very big benefit.

“A major takeaway for me and for RMIA is the necessity of risk managers and supply chain managers talking more, and forging a 30 | MHD SEPTEMBER 2021

“

At this stage I’d advise supply chain managers: ‘If your risk guys haven’t started this conversation with you, the onus is on you to start the conversation with them. It can’t be put off.

”

joined-up approach, such that supply chain managers are not inadvertently introducing new risks to the organisation,” Simon says. “At this stage I’d advise supply chain managers: ‘If your risk guys haven’t started this conversation with you, the onus is on you to start the conversation with them. It can’t be put off.”

Each organisation either is having or will have to have a new conversation around risk appetite – one that involves supply chain managers, he says.

“This is a conversation for the board of any organisation to set the parameters that the operation can work within,” Simon says. “For instance: ‘We’ll accept three data hacks per year as long as there’s no financial impact and we’re still able to maintain continuity of supply’, versus a hard-andfast approach that will not accept any hacks and will not pay any ransoms. Those are things that will come down from the board – and this should involve risk- and supplychain managers’ input – and will set the parameters within which supply chain managers operate.

Simon concludes by saying that businesses are moving in a direction of greater agility and thirst for information to make informed decisions. “These higher-level notions – tracking assets and maximising their utilisation for business efficiency – obviously flow down to a customer service level, and the staffing requirements that go along with them,” he says. “So, there are myriad touch points where IoT is of great service. Thinxtra – as leaders and educators in this area – have alerted me not only to the benefits but also to the risks. But – to be honest – these kinds of risks are nothing new that organisations aren’t already facing anyway. We don’t need to reinvent the wheel to respond to supply chain risk with IoT. We just need to adapt in a measured, cumulative, way and build up our riskresiliency accordingly.”

Working with RMIA to develop resilience and expand understanding is something Thinxtra’s Founder, Loic Barancourt, says is essential going forward.

“IoT solutions give supply chain managers the visibility they need to gain more control and get the right insights at the right time to make better decisions.

Working with organisations like the RMIA is expanding the conversation from operational efficiency into a risk conversation, which adds a lot of value to the industry when it comes to building stronger resilience.” ■

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THE JOB DOESN’T END WHEN THE CANDIDATE ACCEPTS Manhattan Associates has worked with Bastian Consulting’s Tony Richter for several years to recruit the best people for its needs across Asia Pacific. Keith Hunter, People Director Asia Pacific for Manhattan Associates, explains Tony’s process.

K

eith Hunter, People Director Asia Pacific for Manhattan Associates, began working for Manhattan after it had already established a working relationship with Bastian Consulting’s founder, Tony Richter. Manhattan Associates is a global leader in supply chain technology development and innovation with 3500 employees around the world. But as a human resources professional without prior experience in supply chain and logistics, he says he has found Tony’s counsel on talent recruitment invaluable.

“When I joined Manhattan, I reached out to Tony and was very happy to continue the relationship, because he had established such a strong track record in recruiting key personnel for Manhattan,” Keith says. “And since supply chain was completely new to me, having someone like Tony – who has an impressive grasp of the industry, together with wide-ranging connections – to partner with was very helpful. It meant I could immediately leverage his knowledge and understanding and reach.”

NOT YOUR AVERAGE RECRUITER Keith says that there are many large recruiting firms that recruit across multiple industries and offer very similar suites of services. This isn’t necessarily a bad thing, he adds.

“But where Tony is of value to a company like Manhattan is that his sweet spot is supply chain,” Keith says. “Because of that industryspecific focus, he not only tracks available talent in the market, but he also spends a lot of time analysing what’s occurring within the marketplace – what’s happening in terms of trends, what companies are doing

“

It’s simply a matter of ensuring that any messaging he’s hearing from both parties is being effectively, diplomatically, and constructively communicated.

”

to evolve their supply chain challenges, what vendors are doing and how organisations are responding to the war for talent.”

The depth of Tony’s knowledge and research into supply chain talent means that when a role needs to be filled, Manhattan doesn’t have to spend time educating a recruiter on what it’s looking for.

“We can just go right to the crux of the matter,” he says. “Tony knows the industry but has also done the work to know Manhattan as well as anyone outside of the organisation could. He knows the main players in the industry, and he’s personally recruited a lot of them. He also knows the style of our Hiring Managers, which is key in selecting candidates that will be a good cultural fit.”

Keith notes that Tony’s knowledge extends to Manhattan’s products and solutions – not just personnel. The candidate profiles he helps Manhattan develop, therefore, are informed by a perspective that incorporates understanding of the organisation’s internal culture as well as an external, industry-wide perspective.

A further benefit of Tony’s sustained longterm engagement with Manhattan is that his knowledge accumulates, and each new engagement can build off his prior successes, Keith says. “There’s two senior people in the APAC organisation that Tony’s recruited for us. When looking for that level of roles we have our own criteria to satisfy but Tony’s understanding of our business, our people and our culture makes Tony’s input on who will be the perfect candidate invaluable. Because he’s done it before, recruiting roles from individual contributor to Managing Director level he’s actually played a part in building that culture with us over multiple engagements.”

MHD SEPTEMBER 2021 | 33

High level recruitment is a sophisticated process, and Bastian works closely with its clients through every stage.

HONEST AND EFFECTIVE CONSULTATION One of the key qualities Keith says sets Tony apart is that he doesn’t engage in salesmanship or spin. “It’s the most frustrating thing in HR when you get recruiters promising you the world,” he says. “He’s not a typical recruiter in that respect, he is solely focused on delivering good candidates, and has built his reputation on performance and output.”

This approach applies equally to prospective candidates as to organisations for whom he’s recruiting. While he will be firmly embedded in Manhattan’s recruitment process from the outset – filtering candidates, rationalising and prioritising recruitment objectives, carefully measuring candidates’ distinct comparative advantages against the precise criteria of the role – he works equally hard with the candidates to assess their needs and requirements, Keith says.

“During the recruitment process 34 | MHD SEPTEMBER 2021

Tony is our representative and our go-between. He makes sure the candidate is still comfortable with the opportunity as we progress through the different stages of the recruitment process. He makes sure he answers their questions and asks the right questions to identify any issues.

He consistently checks in with the candidate to see how each interaction with the company went.”

In effect, Keith says, Tony is the trusted intermediary or backchannel through which both parties to the recruitment process can convey messages, receive honest and accurate information from a trusted third party, and be supported by an honest broker with years of experience and learning behind him.

THE JOB DOESN’T END WHEN THE JOB’S BEEN ACCEPTED Keith says that Tony stays engaged with the candidate through the process and many months into their new role. It’s not just about recruiting

someone, but ensuring they receive the early support that keeps them there. He consistently touches base with employer and employee to ensure each is aware and proactively addressing any issues or concerns that come up.

“It’s not a matter of talking behind a new recruit’s back to the employer – that wouldn’t work, and it wouldn’t contribute to the success of either party,” he says. “It’s simply a matter of ensuring that any messaging he’s hearing from both parties is being effectively, diplomatically, and constructively communicated.

“The ability to trust a recruiter is critical. We trust Tony’s commitment to confidentiality, discretion, and good judgement – which means granting him access to the information he needs to carry out his function. And clearly candidates trust him to act with honesty in their best interests, too. That’s why he’s able to consistently deliver excellent results.” ■

.au Magic Quadrant for Warehouse Management Systems, June 30, 2021 by Dwight Klappich and Simon Tunstall

MHD MATERIALS HANDLING

WHY LEGAL FOR TRADE EQUIPMENT MATTERS Rhett Talley, Cubiscan Product Manager for ANZ, Singapore, and Malaysia at Diverseco, says that many freight service providers are leaking revenue due to inaccurate freight measurement. He tells MHD how Legal for Trade measurement equipment can staunch this flow – and recover lost revenues.

W

hen moving freight throughout the global supply chain, every millimetre and every unit of weight – however small – counts, says Rhett Talley, Cubiscan Product Manager at Diverseco.

For freight service providers, unless they precisely measure and weigh the units they carry, it can be death by a thousand paper cuts. The paper cuts in this case result in mass leakage of revenue, as shippers under-declare the dimensions of their goods, and freight service providers – who are after all in the business of selling space – aren’t paid correctly for the space actually allocated to the freight they’re moving.

Diverseco is a firm specialising in systems integration, says Rhett. Indeed, Rhett himself exemplifies the qualities of integrated thinking in finding unique solutions for Diverseco’s clients. His interests range from the technical side of measurement and automation to

Cubiscan is one of the top dimensioning solutions that Diverseco deploys.

36 | MHD SEPTEMBER 2021

relationship building, sales leadership for products he believes in, the psychology of workers and consumers, and innovative methodologies – all underpinned by a holistic understanding of and commitment to facilitating global trade.

But when it comes to accurate measurement, he has a simple summary of what Diverseco offers: “What sets us apart is that we’re your measurement data partner,” he says. “We make it all about the data.”

LEGAL FOR TRADE MEASUREMENT – AND WHY IT MATTERS To understand what ‘Legal for Trade’ means it helps to take a step back, says Rhett. “It starts with the International Organisation of Legal Metrology (OIML),” he says. “Legal metrology is the application of legal requirements to the science of measurements – and in this context we’re concerned with

Rhett Talley, Product Manager for ANZ, Singapore, and Malaysia at Diverseco. whether or not measuring instruments are legally certified to perform the task of measurement to a satisfactory standard.”

Certification of instruments is granted internationally by the OIML and domestically by the Australian National Measurement Institute (NMI). “Diverseco as a company, as well as a majority of our technicians, are licensed and authorised by the NMI to verify various measurement instruments as complying with Legal for Trade requirements as set out by the OIML and the NMI.” Freight service providers move goods from point A to point B, and they have a finite amount of space on their planes or trucks to fill, Rhett says.

“The meaning of Legal for Trade dimensioning and weighing in the supply chain is relevant for those shippers who have parcels or pallets, and they want to ship them from one place to another, in a less-than-truckload or less-than-

MHD MATERIALS HANDLING container-load application,” he says.

“Whether the shippers are sending one piece of freight or 10, they must make a declaration specifying the dimensions of the freight they’re giving to the freight service provider to move. And anyone who has sent freight will be familiar with the forms you need to fill out – they’ll ask you for length, width, height, and weight.”

Rhett says that most people aren’t very sophisticated when it comes to making measurements for purposes of filling out a declaration form – often because they lack the correct equipment to do so.

“So, they’ll make a declaration and get it as close as they can,” he says. “And the freight service provider charges them a price based on a dimensional weight formula. For example, one cubic metre could be equal to 250 chargeable kilograms. If you send a pallet of goods out and it is in fact one metre by one metre by one metre, and weighs 250kg, then that’s fine. But from the freight service provider’s perspective – a cubic metre of toilet paper weighs far less than that, but still takes up the same space – and so the shipper will still be charged $250 based on the formula.”

Because of this variability, there is ample opportunity for either shipper or freight service provider to lose money due to imprecise measurements.

But Rhett says that it’s usually the freight service providers who are losing money because of under-declared measurements by shippers – who might just be using antiquated methods like a rough yardstick or a “good eye” to capture the dimensions they declare.

And inaccurate measurements, if not corrected by the freight service provider, mean that space is not priced correctly, and it loses money – either because it’s not charging enough for the space actually taken up by the shippers’ freight, or because it’s not maximising available space in its trucks or planes.

“They’re leaking revenue,” Rhett says.

“That’s the term the industry uses – ‘leaking revenue’. And we want to help them recover revenues. We’re in the business of revenue recovery.”

REGULAR AND IRREGULAR FREIGHT For a freight service provider to amend a shippers’ freight measurement declaration, it must do so using a certified measuring instrument, Rhett

Parcels come in all shapes and sizes, often requiring innovative solutions to process.

says. This is fairly straightforward in the case of standard cuboidal boxes, which can be measured with a certified tape measure.

But what about irregularly shaped freight?

“Irregular freight might include things like a car muffler, or a whipper snipper – or a guitar in its case – to give a few examples,” he says. “Such measurements of oddly shaped items are very prone to human error in making declarations. Theoretically, the freight service provider is charging for the smallest hypothetical box that the irregular shape would fit into – but that’s very hard to do without sophisticated instruments. So even when shippers are doing their best to declare accurately, there is still massive scope for revenue leakage.”

THE DIVERSECO DIFFERENCE Rhett says that new technologies are available to register measurements with great precision. “There are laser sensor technologies, and for these SICK and Datalogic are – in our opinion – the leaders for this type of equipment,” he says. “There’s also Cubiscan, who are also excellent with their own Legal for Trade proprietary technology. So, these companies build this technology, and then Diverseco – as a systems integrator – can take these components and make them part of an overall integrated system and build bespoke solutions for the unique customer requirements.”

Diverseco implements the best equipment for the operation in question, and then goes to work on the data, Rhett says. “We capture the data from high-tech equipment, then we put it in a digital format that is compatible with your host IT application – whether it be

your ERP or your WMS or your billing system. It sounds simple in theory, but it can be very hard in practice. I’m dealing with customers in Australia now who know they’re leaking a lot of revenue in pallet freight – but they don’t have the IT systems in place yet to make sense of the really important data I’m going to give them. First, they have to build the back-office processing based on business rules.”

Rhett says that Diverseco plays an ongoing role with its clients – from inception through implementation and beyond.

“All of the Legal for Trade measurement equipment that we sell into the supply chain is generating item-level data in real time that is super important to our customers,” he says. “So, we have a bank of engineers in Australia who are able to dial in remotely with an internet connection and troubleshoot the moneymaking equipment for freight service providers in real time, when they need it.

We don’t have to come to site to resolve data automation issues.”

He adds that Diverseco’s comparative advantage in the field comes from a deep understanding of the importance of data.

“We have worked in partnership with our customers over the last 20 years to develop our own proprietary software to provide for data capture and control of equipment,” Rhett says.

“For those transport providers experiencing revenue leakage, once they introduce sophisticated, Legal for Trade weighing and dimensioning instruments – it’s like a licence to print money. What I say to customers is: ‘Dear Customer, you just have to be prepared to change how you operate in order to get the money.’ And they’re usually happy with that idea.” ■ MHD SEPTEMBER 2021 | 37

MHD MATERIALS HANDLING

THE FUTURE OF TRACK AND TRACING Radio Frequency Identification (RFID) technology is growing in demand as businesses look for more detailed real time data accuracy on their inventory. SICK Australia says that RFID tags can improve the tracking of assets, reduce labour costs and provide important information for both producers and consumers.

S

ICK has invested in competency development in Australia for RFID technology, so that Australian and New Zealand firms can provide end-toend software solutions.

Amit Shinde, Technical Sales Engineer from SICK Australia and New Zealand, says Australia is catching up to Europe and the US after lagging behind in adopting this new technology into agriculture businesses.

“The adoption of RFID technology has been fast-tracked by the impacts of COVID, placing more of a reliance on local manufacturing and inventory management,” he says. “We’ve seen the major supermarket chains automating their warehouses – businesses are realising they have to adapt and change quickly with restricted or limited workforces. For example, RFID has been playing a big role in some of the biggest meatworks in this region as part of their automation and digital transformation projects.”

TRACKING EFFICIENCY ON THE FARM Amit says SICK Australia’s recent project with a software company and major agriculture business shows the power of RFID. “We showed the software company our level of expertise in scanning technology,” he says. “They were looking for an out-of-the-box solution different from the traditional way for the operations on a large farm.”

When deciding on how to track and trace inventory, businesses have two main stream technologies to consider: RFID and barcodes.

“Barcodes have been commonplace for decades,” Amit says. “We discussed using the traditional 2D barcode for 38 | MHD SEPTEMBER 2021

this project, but RFID can future proof operations because of the array of data advantages.”

Unlike barcode reader, RFID write/ read devices do not need to be in the same line of sight with where the RFID tags are placed. This eliminates the need for scanning barcode labels on each box, meaning items can be scanned and catalogued even when they’re hidden behind other goods.

“Not having to touch the product is a major advantage,” says Amit. “For example, RFID readers can be mounted at a distance from a conveyor or loading dock where boxes of products or an entire pallet with RFID tags move through. All of the tags can be read at once with a high level of accuracy.”

RFID tags are an improvement over bar codes because the tags have read and write capabilities, Amit says.

Because RFID tags can hold encrypted and unencrypted data at the same time as well as utilise passwords to access stored data, human error can be largely eliminated from the process. The RFID tags transmit data to a centralised warehouse management system (WMS)

Data stored on RFID tags can be changed, updated and locked.

and automatically document the arrival and exit of goods from the warehouse.

“The farmers benefited from being able to trace the growth of products on a particular field, identifying which fields have grown more products which have been weighed, packed and shipped out of the warehouse. RFID provides downstream information on how soon those produces were put on the retailers’ shelf and how quick they were sold to better forecast their production demands.”

Working on a farm, it was important the tags were washdown proof and unaffected by rain, fog and hot weather.

Amit says SICK Australia supplied the integrator with all RFID tags, RFID handheld unit with display, dual camera, bluetooth and GPS functionality for field farm monitoring and recording of data.

Amit says Contactless RFID tag technology is adding speed, accuracy, efficiency and security to an everexpanding range of applications.

“For the packaging shed we supplied SICK RFID UHF Reader and two separate antenna that were installed on the rails

MHD MATERIALS HANDLING for the incoming and outgoing section,” he says. “The challenge for us was that the RFID tags applied on the products were coming at variable speeds and distance. So, we decided to streamline the speed of the rails.”

RFID works most efficiently when it’s paired with the right WMS to analyse the data. Amit says finding the right fit for the specificities of business operations is key to SICK’s success.

“We proposed a customised Smart Dashboard interface using Amazon Web Services,” he says. “We worked together with the weighing scale supplier to program a software that accepts the weight of the product, combines the data from the RFID reader and adds in the time and date to send it to the Cloud Platform.”

The cloud-based farm management digital solution can be tailored to plan, manage, forecast and budget the farm operations from planting to packing. The Smart Dashboard allows the business to visually map, track and forecast its future harvests and record and manage its dayto-day production activities.

THE FUTURE OF THE AUSTRALIAN MARKET Amit says more warehouses and distribution centres are moving away from traditional barcode methods.

“RFID helps to accommodate for the increase in throughput at the manufacturing site and distribution centre,” he adds. “The demand for same-day delivery on products means managing the flow of products is so crucial.”

RFID scanning requires less resources than barcode scanning because it tackles

RFID tags transmit data to a centralised warehouse management system.

several tasks at once.

“You can embed a large amount of data with RFID. It can be used for monitoring the date and time stamp as well as location tracking.”

SICK’s tracking technologies, backed

by German engineering solutions, are proving helpful for high-risk manufacturers.

“There’s so many challenges being thrown at manufacturers and distribution centres,” Amit says. “We provide practical solutions with an eye on the future.” ■

MHD WAREHOUSING

LAYING THE FOUNDATION FOR AUTOMATED WAREHOUSING Warehouses are being automated at a growing rate across Australia.

Kevin Dare, Managing Director of the CoGri Group, explains how Face Consultants is helping businesses pair automated machines with warehouse floors tailored to their requirements.

Goods-to-person mobile robots transport inventory for picking and packing.

T

he e-commerce explosion has led to more automated options in warehousing, such as Automated Guided Vehicles (AGVs), Autonomous Mobile Robots (AMRs) and Automatic Storage and Retrieval Systems (ASRS) being used in the materials handling process.

Kevin Dare, Managing Director of the CoGri Group, says the automation is only as good as the platform it runs on.

“Automated warehouses pose different requirements for the floors to three years ago,” Kevin says. “There are many new robotics companies coming online now specifying their own floor

requirements with very little regard to the construction industry’s ability to understand them, let alone build to them. A move to a standard specification approach is needed.”

As part of the global industrial flooring consortium, the CoGri Group, Face Consultants helps Australian businesses understand the automated suppliers’ specifications. Face provides advice on flatness and carries out design reviews to ensure the design meets the requirements of the automated supplier. Staff work on-site to ensure a new development is being built as designed.

“Before the e-commerce era, specifying warehouse floors was

relatively easy with regard to the equipment that operated on it. What rack leg load? How high is the racking?

Wide aisle or Very Narrow Aisle?”

Over tens of years, both the logistics and construction industry have evolved floor standards that are fit for purpose and understood by both parties. Now, AGVs and AMRs introduce new challenges, with bespoke flatness requirements and additional characteristics never regarded as necessary with traditional materials handling equipment, according to Kevin.

“Automation has placed a

Face Consultants provide advice on floor flatness.

MHD SEPTEMBER 2021 | 41

MHD WAREHOUSING

“

Face Consultants work to bridge the gap between the materials handling and construction industries by understanding the requirements of the former and having the capabilities to deliver for the latter.

Profileographs check the floor’s surface regularity against six properties of floor flatness. greater emphasis on floor flatness requirements and also testing for slip resistance, roughness, gloss rating and electrical discharge to prevent static build-up before a warehouse gets the green light for operations to begin,” he says.

Kevin says Face Consultants work to bridge the gap between the materials handling and construction industries by understanding the requirements of the former and having the capabilities to deliver for the latter.

“Robotics companies understand their equipment, but they don’t speak the same language as construction companies when providing the specification for the floor,” he says.

“We not only develop equipment to tests floors, but we help develop these specifications so that the construction industry can easily understand how to deliver the platform.”

Face Consultants has recently worked with one of the world’s largest e-commerce companies on the floor construction at its robotics warehouse in Western Sydney, set to be one of the largest fulfilment centres in the Southern Hemisphere.

In environments like these, speed of delivery is crucial, with consumer expectations shifting towards fast delivery services.

“The client’s robots allow for higher picking rates to get an extremely fast throughput, which is what other businesses are looking to replicate.”

Despite years of experience working with some of the biggest 42 | MHD SEPTEMBER 2021

materials handling businesses in the world, like Amazon and AutoStore, Face Consultants is still learning and adjusting to the challenges automation throws at the warehouse floor.

For example, Kevin says some of the AMRs have characteristics that can accelerate the wear of the floor, as their casters snap into position when the robot moves off at right angles to the original line of travel.

“We’ve never seen this characteristic in the past and it’s causing greater wear and tear to the floor,” he says. “The materials handling industry has been comfortable for many years, but we now need to be aware of

Surface microroughness is determined by assessing deviations from the normal profile of the surface.

”

these new challenges.”

Kevin says Australia has been late to adopt these changes compared to the rest of the world, but more businesses are beginning to flick the switch. He reinforces that the biggest challenge in this transition is providing floor specifications that the construction industry understands.

“Our work is very specialised,” he says. “Incorrect or over-specifications happen because even the best floor designers don’t always understand what’s required, deferring to what the construction industry can deliver rather than what the materials handling industry needs. This is where we help get the floor right the first time.” ■

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MHD INDUSTRIAL PROPERTY

ARE EMBEDDED SOLAR NETWORKS THE FUTURE? Andrew Simons, Head of Development – Industrial and Logistics at Charter Hall tells MHD why solar power is the future of renewable-led industrial and logistics estates, and the opportunities and challenges that currently surround the construction of embedded solar networks.

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ndrew Simons, Head of Development – Industrial and Logistics at Charter Hall says the industrial and logistics sector has recently been making great strides when it comes to setting environmental sustainability and utility use benchmarks. This is something that Charter Hall is also working to address, he says.

Andrew says over the past few years, Charter Hall’s Industrial and Logistics sector has seen year-on-year improvement across all investment funds regarding key sustainability

benchmarks, including Green Star performance and GRESB ratings.

Charter Hall is taking a proactive stance, evaluating the Green Star ratings of over 137 assets and working on sustainability initiatives that will improve these ratings across its industrial and logistics portfolio, he says.

As the owner and manager of 49 per cent of Australia’s grocery logistics real estate, Charter Hall is Australia’s largest grocery logistics landlord, funding, developing and owning key warehouse and distribution facilities for major food Head of Development – Industrial and Logistics at Charter Hall.

Fernhurst at Drystone Industrial Estate, VIC has a 440kW system.

44 | MHD SEPTEMBER 2021

companies such as Coles, Woolworths and Ingham’s. With these major tenants requiring a substantial amount of power to maintain a consistent temperature for inventory storage, Charter Hall works with each tenant to meet their respective ESG targets. This typically involves offsetting as much of this energy as possible with the use of renewables.

According to Andrew, one key area that Charter Hall’s Industrial and Logistics sector is currently focusing on is accelerating the rate of solar installation across the rooftops of warehouses.

“Due to the sheer amount of space available on the rooftops of our industrial and logistics facilities, the untapped potential of solar is the real game-changer that we are focused on substantially accelerating on a yearon-year basis,” Andrew says.

When asked what he believes is the

MHD INDUSTRIAL PROPERTY next step in solar power advancements within the industrial and logistics sector, Andrew points immediately to embedded solar networks as the way forward for the industry.

Embedded solar networks are privately-owned electricity distribution systems that use a network of solar panels to power groups of buildings or tenant spaces. These are often used for large shopping centres, office buildings or industrial parks that house multiple tenants.

Andrew says Charter Hall is proposing to join warehouses within an estate to an overarching embedded solar network. This would allow them to supply excess solar power from one building to others throughout their industrial estates, creating a microgrid of renewable power.

“Constructing embedded solar networks comes with countless benefits,” explains Andrew. “You get the most benefit out of solar power if you are able to utilise excess energy for other buildings, rather than just transferring unused power back into the grid, which can come with its own complications if the grid becomes overloaded.”

“This distribution of power also helps to drive down electricity costs and provide a competitive business advantage by allowing Charter Hall to offer cheaper and ‘Green’ electricity to tenants,” he adds. “This flexibility would allow our tenant customers to take up more solar power over time as their business grows, their needs evolve, and their operations expand.”

But Andrew explains that constructing this kind of embedded solar panel network within an

industrial estate is easier said than done, due to restrictive red tape and regulatory barriers.

“A lot of the existing state and federal legislation dictates that you can’t cross public roads or title boundaries with private infrastructure, which is where we run into the most issues,” says Andrew. “Midwest Logistics Estate in Truganina, Victoria, for example, has three major roads that cut through the estate, so we are currently trying to work around the titling issues and connect the buildings that lie at the boundaries of these roads.

“It is clear that these regulations were once put in place for a sensible reason, but unfortunately, these historic laws do not reflect the changing times and subsequent advancements in solar technology that are available to us now.”

Additionally, a small pool of energy retailers in each state typically controls the permissions surrounding how much energy companies are allowed to export – which can inhibit the creation of these self-sustaining micro-grids, Andrew says. “That’s another area that needs to be addressed if we are to allow the industry to make the most of renewable rooftop generation and share that energy a little more readily.”

Charter Hall’s Industrial and Logistics sector has pilot projects running to test how they may work around some of those issues and are aiming to secure approval for an exemption development that includes an embedded network.

“We’re investing in these pilot projects to try and move the dial and benefit the industrial and logistics industry as a whole,” says Andrew. “For

the sake of our planet, the industry and our economy, you should be able to generate the maximum benefit by providing the surplus power generated from one building to other buildings within local proximity, rather than the significant inefficiency of transferring this surplus power back into the grid.”

In the meantime, Charter Hall is committed to building as much solar infrastructure as possible, while it waits for the legislation to catch up.

It has set up a taskforce to create a bespoke strategy for individual tenant customers in each building, to maximise the number of solar panels that can be fitted to each rooftop.

Originally, Charter Hall was designing standard ‘Ambient’ buildings to take up to 20 per cent solar on the rooftops of industrial facilities.

However, Andrew says the company is increasing this target significantly, and is currently looking at solutions to reinforce the roof strength and wind load of every building to take 100 per cent solar – regardless of the current needs of the tenant.

“Over the next three years, we have committed to building 11 megawatts of solar across our Industrial and Logistics portfolio,” says Andrew.

“Nearly three megawatts of that solar will be located within our Midwest Logistics Hub estate – our newest development in Truganina, Victoria – alone, where a number of our big-name tenants with larger facilities are located.

“Ultimately, this links to our overarching Charter Hall group strategy of addressing climate change, creating high-performing buildings and producing the best possible outcomes for our tenant customers.” ■

Coles Distribution Centre, SA – installation is in progress of a large 1.9MW system.

MHD SEPTEMBER 2021 | 45

MHD MATERIALS HANDLING

The need for resilience and agility is driving investment in automation.

GETTING FIT FOR THE SUPPLY CHAIN EVOLUTION Dematic explains how automation can enhance resilience and agility as global supply chains and distribution channels are subject to constant change.

T

he last 18 months has shown how significant changes to supply chain can be and that any change can have significant consequences. To stay ahead companies need the right adaptive strategies, focused on maximising resilience to disruptions and agility to deal with volatility.

MAJOR SHIFTS, MULTIPLE CHALLENGES The current pandemic has fundamentally changed consumer behaviour, leading to a complete shift across supply chain landscapes. In the early days of the pandemic, shoppers, fearing the unknown, cleaned out store shelves to stock up on essentials.

This unexpected demand left many store shelves empty, highlighting the inefficiencies within the global and local supply chains.

As lockdown initiatives took effect, online orders began to surge dramatically. Online shopping was on a growth trajectory well before the pandemic surfaced, but the speed has accelerated globally. In 46 | MHD SEPTEMBER 2021

Australia, e-commerce spending grew significantly in the eight weeks after the pandemic was declared, with some major retailers announcing up to 80 per cent growth in online orders in this period, and in the most recent May NAB Online Retail Sales Index, online spending comprised 13.2 per cent of total retail trade in Australia, up 38 per cent higher than 12 months earlier (on top of 52 per cent growth in the previous 12 months).

At the same time, consumer behaviour has also shifted: today, the service level expectations of online shoppers are exceptionally high.

They expect almost unlimited choice, they want products available at the best price, they want it delivered the same day - and free of charge.

Moreover, consumers have an endless amount of information at their fingertips, allowing them to easily compare product specifications, price, availability, delivery timing, and returns policies. They also have access to products from all over the world, which opens up a new era of hyper-competition.

THE COST AND AVAILABILITY OF LAND AND LABOUR As supply chains have come under heavy pressure, so too have distribution centres (DCs). Having DCs close to the customer is key. However, with increasing urbanisation, land is becoming scarce and very expensive.

In Australia specifically, rent for warehouse space has increased by 25 per cent in the last three years, and the availability of commercial land in a city such as Sydney has reduced by 35 per cent in the last five years.

Finding and retaining labour in a DC is additionally becoming an increasing challenge for many industries. In Australia and New Zealand, the cost of labour is constantly on the rise – and keeping staff safe, complying with regulations, and needing higher productivity from people are real challenges. Occupational health and safety is always crucial, but to keep up with demand, many employers are asking their workforce to work faster. It is evident that this cannot be the right strategy to get ahead

MHD MATERIALS HANDLING of supply chain challenges. Instead of asking how to work harder, logistics operations need to start working smarter.

BUILDING RESILIENCE IN THE ERA OF E-COMMERCE AND OMNICHANNEL A market survey of food and beverage and other manufacturers

by Gartner last year showed the key focus of companies was on building resilience and agility, with 28 per cent currently investing in fully automated “lights out” logistics processes and 58 per cent looking to invest in fully automated processes in the next five years. This is in line with Dematic’s food & beverage and retail customers in Australia and New Zealand increasing their investments in automation for improved resilience and agility.

Automation in stores, distribution centres and production facilities provides companies with the capacity and flexibility to identify and adjust to rapid changes in customer buying patterns, whether it’s supplying DCs, stores or online orders.

Dematic’s Flexible Mixed Case Fulfillment automates the process of order fulfilment of mixed case orders for grocers, general merchandise for retailers replenishing stores and food & beverage manufacturers building route trade orders. The technology allows companies to maximise productivity and reduce reliance on increasingly hard-to-find labour, maximise order accuracy, order throughput,

Companies are increasingly looking to fully automate processes. replenishment speed, product quality and on-time shipments in a reduced building footprint.

Dematic Micro-Fulfilment is also paving the way for better efficiency in the B2C online supply chain. These highly compact, high-performance automated order fulfillment systems can be implemented close to consumers in footprints as small as 1000 square metres (such as in the back of a retail store or in a nearby online fulfillment dark store) for optimised click and collect and last-mile home delivery fulfillment. Companies are no longer left to rely on DC or in-store fulfillment, reacting to spikes in demand quickly and efficiently by shifting between fulfilment channels.

While a number of leading global retailers are investing in Dematic

AGVs move, store and retrieve goods without manual intervention.

Micro-Fulfillment systems, the solution has been applied to food & beverage manufacturers for their expanded channels strategies.

Automated Guided Vehicles (AGVs) have become an increasingly adopted innovation within production, warehousing and distribution environments as robotic forklifts that move, store and retrieve goods without manual intervention. AGVs improve shipping speed and accuracy, safety and reduce product damage with automated product movement from production and storage to shipping.

They are highly flexible and scalable, with AGV readily able to be added in line with throughput growth.

FASTER DECISIONS FOR A SUCCESSFUL FUTURE Warehouse Management Systems (WMS) and Warehouse Control Systems (WCS) allow businesses to make faster decisions. Dematic’s Software Suite makes intelligent, data-based decisions to improve distribution and fulfilment processes, which helps companies to respond to spikes in orders or changes to profiles across different fulfillment channels quickly and effectively.

While new challenges are emerging, new innovations are also being created all the time. Companies that invest in supply chain resilience and agilility are turning these challenges into opportunities – and taking advantage of growth potential. Dematic sees it as our task to enable these opportunities - to help our customers not just to survive, but to thrive. ■ MHD SEPTEMBER 2021 | 47

MHD SUPPLY CHAIN

NAVIGATING THE FLOW-ON EFFECT OF SUPPLY CHAIN DISRUPTION The availability of passenger flights carrying cargo has dropped dramatically for Australian importers in the past year. Andrew Coldrey, C.H. Robinson Vice President Oceania, says airfreight charters are offering another option to meet consumer goods demand this Christmas.

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.H. Robinson has spent a billion dollars over the last ten years on technology to provide the most optimised solutions for its customer’s supply chains.

Andrew Coldrey, Vice President Oceania, says COVID disruptions present flow-on challenges, and the most datainformed strategies are required to overcome them.

In 2019, the global 3PL provider announced a commitment to invest $1 billion in technology advancements over the next five years, doubling its previous investment.

“The past eighteen months have validated the company’s decision to double down on its tech investments,” says Andrew. “There are so many information gaps in supply chains, and relying on third-party-provided information is often essential to overcome disruptions. This has driven us to do a lot more of the informationbuilding ourselves.”

C.H. Robinson’s charter flights have increased 1000 per cent since the pandemic began.

48 | MHD SEPTEMBER 2021

Andrew says one key challenge comes from more airlines diverting passenger planes to the northern hemisphere, where international passenger travel is on the rise. These planes carry around half of all air freight.

“Global carriers have recently announced they would cease passenger flights to Australia until at least early next year because they can make better use of crew and aircrafts in the northern hemisphere,” he says. “With Australia’s state governments calling for a reduction in the passenger cap limit, restrictions on incoming passengers meant continuing service in the short term was not viable.”

American Airlines decided in July to suspend all flights into Australia across September and October.

The announcement is symptomatic of the challenges faced by Australian importers. With less passenger and freighter flights, businesses may have to think outside of the box to get their product onto Australian shelves.

Andrew Coldrey, C.H. Robinson Vice President Oceania.

“Announcements like these from leading airlines further reduces the options, and charter flights might be the only way importers can shift their goods before Christmas,” Andrew adds.

Andrew says C.H. Robinson has increased the number of charter flights into Australia, often from the US, to about two per week to service its client demand.

“Traditionally, we use charters for more project-specific shipping – for instance, moving really large pieces of equipment for time-sensitive medical emergencies,” he says. “But now we’re finding charter flights are sometimes the only means of ensuring continuity of supply for goods that would never normally fly in charters – and often wouldn’t fly airfreight at all. It’s one way we’ve been able to add capacity in a

MHD SUPPLY CHAIN market that’s incredibly tight.”

Andrew says importers are being additionally squeezed because demand in the ocean freight market is far outstripping supply.

“Out of Asia we are about 45 per cent up in volume on last year, so we’re moving more cargo,” he says. “The demand is even stronger than that. It’s just maxed out.”

He notes that freeing up space on cargo ships isn’t an overnight fix, either.

“There might be a shift towards more local manufacturing, reducing demand such that it ends up matching supply a little bit better,” he says. “There are more ship builds coming online, but they’re not scheduled until 2023 and 2024.”

The domestic ocean freight market is also under pressure along the Australian coast.

Andrew notes that many coastal shipping carriers have either stopped services for the time being or significantly reduced capacity.

“Part of that decrease is really to do with equipment,” he says.

“There’s such a desperate need to get equipment back into Asia, carriers don’t want to tie it up on the coastal route. Even though the equipment is moving back that way eventually, a container that moves from East to West Coast will still be out of action while it’s delivered and then unpacked and returned.”

The domestic ocean market is shipping around 20 per cent of its usual volumes, necessitating more reliance on rail and road.

However, Andrew sees the dramatic drop in coastal shipping as a short- rather than a long-term trend – the result of lingering COVID disruptions that will in time be at least partially alleviated.

“We do expect interstate ocean freight to return and quite a few of our partner carriers have indicated that services will be resuming in the shorter term, not the longer,” he says.

Lifting rates at ports is another disruption currently challenging the industry. With the majority of lift capacity utilised for import cargo, Andrew says there’s not enough slots at terminals to load outbound coastal boxes.

“These disruptions are intertwined,” he says. “A lot of it has to do with the quality of information – so we’re being really proactive in helping customers plan ahead.”

Andrew says C.H. Robinson provides information in such a way that it can be understood by every part of a business – not just the supply chain operators.

“We give the tools to people in supply chain so they can then explain to the rest of the business what the impact is,” he says.

“An organisation’s finance department, buyers, and marketing people need to understand just how significant supply chain challenges are. Instead of focusing on what a business’s lead times were, or what a carrier has promised, we describe the reality of how long things are actually taking, so we can forecast and predict the impact of different disruptions.”

The drought in supply on ocean and air freight means importers need to organise their supply chains months in advance to be prepared for the Christmas rush.

“Our message to importers, especially in the retail space, is to make airfreight decisions early,” Andrew says. “There is capacity if you know where to look for it.”

C.H. Robinson reports that current disruptions can extend lead times by more than a month for some customers.

“Preparing solutions as early as you can also reduce costs for importers,” Andrew says. “The more flexibility you have, the more options you have. But if you leave it too late, you’ll be more desperate – and left facing higher costs in a hotter market.” ■

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MHD WAREHOUSING The EcoMax 100 lasts for eight hours on a single charge.

FLEXIBLE WAREHOUSE CLEANING Long-term investment in specific cleaning equipment is sometimes out of reach for businesses in the logistics industry. MHD talks to Conquest Equipment about how its hire system helps accommodate for seasonal needs and sporadic spills in the warehouse.

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onquest Equipment is on a mission to constantly evolve in line with its customers’ needs.

The Australian family-owned business started providing industrial cleaning equipment in warehouses and manufacturing facilities in the 1970s.

Since then, Conquest has placed an emphasis on being behind the customer all the way, which is why they recently expanded their equipment hiring system.

Andrew Dillon, Sydney-based Key Account Manager at Conquest, says the ability to hire equipment for as little as one day or for as long as required, gives businesses the opportunity to scale.

“The logistics industry is seeking flexibility- we’ve seen over the last 18 months especially that things can change rapidly and the freedom to scale with the needs of the business

50 | MHD SEPTEMBER 2021

is really important,” he says. “Hiring allows you to bring in specialist equipment to respond to specific situations without committing to a much larger financial investment.”

Andrew says seasonal deep cleans over the Christmas break are extremely common for logistics customers, as well as hiring equipment for stocktakes, order preparation, client visits and end of lease makegoods. Facilities also might not have the in-house resources to clean mess caused by unpredictable wild weather, warehouse spills or flooding.

“We focus on providing for very specific channels,” he says. “The hiring model solves a lot of challenges, especially in the logistics space.”

Staying true to its motto, Conquest applies an onboarding process to the sale of its equipment to ensure the customer isn’t left in the dark

over operating confusions.

Andrew says this customer service applies to the hiring system as well.

“We make a recommendation based on the customer’s needs and provide operator training via videos or over the phone – whatever makes it stick,” he says.

Flexibility seeps through to the transportation of the equipment as well.

For those seeking contact free hire, Conquest delivers the machine to an agreed delivery point, and collects again from the same location.

However, the company offers direct delivery options and hires trailers for businesses without the equipment to transport the heavy-duty machines.

“The delivery and collection of equipment can’t be a constraint.

When you’re providing this quick fix for customers, you can’t

MHD WAREHOUSING

Andrew Dillon, Key Account Manager at Conquest. introduce headaches.”

Conquest has expanded its hire fleet to meet a surge in demand across Australia. Andrew has seen a shift in warehouse managers and operators’ placing an onus on keeping the facility clean.

“Employers have felt more responsible to make sure they’re providing a safe and clean working environment for staff,” he says. “With the importance of first impressions of a facility being noted around the industry, specialised cleaning equipment is being used more and more.”

Conquest’s hire fleet is now available in Melbourne, Sydney, Brisbane, and most recently Adelaide. The company has also added more equipment, such as trailer mounted hot pressure water cleaners, large capacity combination sweeper/scrubbers and electric outdoor cleaning machines.

Andrew adds that each of these solutions fill distinct gaps within the market. The hot pressure water cleaner provides a deeper clean than alternative options, and is one of the company’s most popular units for hiring in the warehouse space.

The trailer-mounted cleaner is used for hard-to-reach surfaces, as well as deep clean applications like removing forklift tread marks from the warehouse floor.

“The machine is a big mover because it’s fantastic for vertical and horizontal surfaces that traditional scrubbers can’t reach,” he says. “It can be mounted onto a tow vehicle, so it’s easily moved around the facility.”

The hot water pressure cleaner, as well as the new EcoMax 100, provides solutions to outdoor and indoor problems. Andrew says purchasing cleaning equipment to maintain just the outdoor area of a business isn’t always feasible, given the irregular requirements.

“It’s important not to neglect the outdoor area as well,” he says. “A warehouse might have a lot of roadway or hardstand which needs a powerful sweeper to clean.”

And the outdoor solutions range help businesses reduce their carbon footprint. The zero emission EcoMax 100 pavement sweeper uses battery technology, delivering up to eight hours of continuous operation on a single charge. The machine is capable of a 6.5kmh maximum speed and 5000 sqm of coverage per hour.

The EcoVac 240 is another ecofriendly addition, providing contactfree collection of waste and debris.

“The street litter vacuum uses an interchangeable 240-litre wheelie bin waste collection system,” he says. “The machine is operated by one person and has up to 18 hours of continuous run-time, which is as efficient as five manual labour operators.”

Andrew credits the success of Conquest Hire to keeping the process as simple as possible for the customer.

“We don’t send them a huge draft of documents that need to be filled in,” he says. “Warehouse managers are always busy. It’s a one-page agreement, we keep it simple and provide the flexibility for the most effective cleaning solutions.” ■

Hot water pressure washers offer a deep and efficient clean.

MHD SEPTEMBER 2021 | 51

MHD PROPERTY FOCUS

Colliers has long been a leader in Occuper Services in warehousing and industrial real estate.

PARTNERING FOR SUCCESS Colliers’ Occupier Services has recently formalised a strategic partnership with Pollen Consulting Group to deliver end-to-end solutions for occupiers of industrial property. MHD speaks with both companies about the new partnership, and how they reinforce each other’s strengths.

D

oug Henry, Managing Director of Occupier Services Australia for Colliers, says that over a number of years now Colliers has been working hard to continually evolve its Occupier Services capability across all property sectors.

“We’ve created a whole series of services attached to the needs of occupiers, ranging from Workplace Management Services – where we have a large number of our people around Australia looking after our occupier client’s workplaces– right through to portfolio management and specialised Tenant Advisory Services,” he says.

Peter Evans, National Director, Occupier Services for Colliers, adds that during his 17 years on the occupier side of the business, the warehousing and logistics real estate market has become more technical, and the total capital investment occupiers are making has changed dramatically. “We’re now seeing warehouses being constructed that are 52 | MHD SEPTEMBER 2021

20, 30 or 40,000 square metres and upwards, which was unheard of five years ago,” he says.

But it isn’t only the sizes of warehouses that have changed, it’s the capital expenditures that go along with them that has transformed the market, Peter says.

“We’re finding on many occasions, the capital expenditure within the warehouse outweighs the actual cost of the buildings themselves,” he says. “In terms of getting the capital expenditure approved, the property sector traditionally comes in at the end of the process. This is why we have partnered with Pollen Consulting Group, so they can provide independent factual advice to guide logistics and warehousing solutions.

The advice may well be that the occupier doesn’t actually need to move to a new property.

“The purpose of the partnership with Pollen is to have a pure consultancy based model, so we can provide appropriate information

and work together collaboratively to find for the right solution for the occupier,” he says.

Paul Eastwood, CEO of Pollen Consulting Group, observes similar trends to those identified by Peter, while coming at the issue from a slightly different perspective.

“I think warehouses used to be viewed as an almost necessary evil,” Paul says. “They were something often relegated to the end when planning out what you’re going to do. Everybody had them, but there wasn’t that much care for them, sitting as they did at the end process.”

Paul says that the logistics and supply chain distribution model has changed, such that it can be a competitive advantage for businesses – owing to increased complexity around where and when businesses want goods supplied.

“Previously, I think supply chains were perceived as disconnected from the operational core of the business, whereas now there’s a blurring of

BROUGHT TO YOU BY

manufacturing and warehouses,” he says. “You can almost spend as much capital on your warehouse as you can in your factory.”

Paul says that the relationship with Colliers grew out of the latter serving as something of an informal sounding board on property for Pollen. As the emphasis on property grew, Paul says Colliers became increasingly important as a means of leveraging property information to provide the best advice to Pollen’s clients.

So, it was a natural progression for Colliers and Pollen to formalise their working relationship. “I’m pretty open to saying that this is a big opportunity for Pollen,” says Paul.

“Colliers’ network is a lot broader than ours in the industrial space. It is an opportunity for us to use our capabilities with a broad spectrum of clients and tap into a network that allows us to give the best possible advice.”

Doug Henry says that the Occupier Services side of Colliers benefits from the specialist advice of Pollen because – working as they do for occupiers and not landlords – the long-term viability of Colliers’ Occupier Services is predicated on maintaining the trust of occupiers and independence from landlords’ interests.

In practice, Paul says, Pollen and Colliers work separately as

Pollen Consulting Group and Colliers have partnered to offer the best in end-to-end supply chain solutions. businesses but in tandem towards a mutual goal.

“A good example might be a manufacturing facility project – and this is an exciting area because we don’t just do warehouses, but manufacturing sites as well,” says Paul. “Pollen might get involved in a business case for a new manufacturing facility. We’re asked to see if it all stacks up. So, we’d help them do the business analysis. What’s it going to save them? What’s the capital cost from equipment and machines?

What are the one-off costs to

consolidate and close the site from a personnel side?

“Then we work with Colliers for advice on locations, innovations, inputs and other insights. We then help that organisation put a business case together to take to the board for approval. Then Colliers manage the execution from a property side, while we support the business from a consultancy perspective on transformation, supply chain, and operations. From there, Colliers’ and Pollen’s work blends together to run as a single project.” ■

Pollen’s expertise boosts Colliers’ advisory capacity, particularly with regard to increasingly high tech warehousing and manufacturing facilities.

MHD SEPTEMBER 2021 | 53

MHD FROM ASCI

ASCI BOLSTERS MEMBERSHIP

Four new corporate members join Australasian Supply Chain Institute.

SCHNEIDER ELECTRIC Schneider Electric provides energy and automation digital solutions for efficiency and sustainability.

Founded in 1836, the fortune Global 500 company offers end-point to cloud integration connecting products, controls, software and services.

The sustainability experts aim to drive digital transformation by integrating world-leading processes and energy technologies for businesses.

BROWN & WATSON INTERNATIONAL Brown & Watson International is the Australian owned and operated company behind several innovative and marketleading brands operating within the automotive electrical and portable power management spaces.

Its stable of industry names include NARVA, Projecta, Philips Automotive, OSRAM, Big Red and Maxi-Lite.

With offices and representation across all states of Australia and New Zealand, Brown & Watson is headquartered at a 17,000sqm facility in Knoxfield, Melbourne.

The company’s range of products are assembled, packed and processed to service the needs of customers in the aftermarket and OEM distribution chains.

CLUB ASSIST Club Assist specialise in the sourcing, storage and installation of automotive, motorcycle and marine batteries, alternators and starter motors.

The Asia Pacific company sources batteries from the world’s largest manufacturers and analyses them in its

Testing and Quality Assurance Facility to ensure they are fit for purpose and meet OEM specifications.

Club assist works closely with battery manufacturer engineering specialists to design products to meet the challenges of the different climactic conditions across Asia Pacific.

The battery technology experts develop new products and services to expand its scope through new partnerships and alliances.

SOUTHTRADE INTERNATIONAL SouthTrade International is an entrepreneurial sales, training, and marketing company, with a primary business objective to drive long-term success for premium beverage brands across Australia.

SouthTrade has a strong distribution and sales network reaching customers across the country. Led by a team that have worked on premium brands globally, SouthTrade works to build brands through educational platforms, memorable experiences and valued partnerships.

ASCI PROFESSIONAL DEVELOPMENT 2 September 2021 Certified Stores and Stock Controller: Online Certification Review 13 sessions | online 2 September 2021 APICS CPIM Part 2 Online Certification Review 13 sessions | online 7 September 2021 APICS CPIM Part 1 (Basics of Supply Chain

Management) - Online Certification Review 13 sessions | online 20 October 2021 Leadership Series: Global Ethics Day | 1 CPD Live webinar | online ASCI2021 Supply Chain Vision in the decade for Action | 20 CPD Postponed - notice will be provided once new dates are confirmed For information on various short courses visit our website.

For further information or to become a member visit www.asci.org.au or email enquiries@asci.org.au

The corporate membership package is for any group, organisation, industry body institution or business that wants to join ASCI and demonstrate its commitment to best practice and excellence, whilst ensuring its team’s proficiency in the supply chain industry.

The package provides access to professional pathways including complimentary practitioner registrations, global best practice knowledge, industry involvement and networks.

ASCI Corporate members receive individual benefits for employees, including ASCI Plus VIP prices for certifications, courses, complimentary tours and networking events and early bird releases.

Join ASCI and take the steps towards your professional career pathway in 2021. Membership starts at $275 with concessions available upon evidence of your employment situation or membership to another association.

For more information on membership benefits please visit www.asci.org.au/join.

54 | MHD SEPTEMBER 2021

MHD SCLAA

AUSTRALIAN SUPPLY CHAIN & LOGISTICS AWARDS 2021 Submissions are now open for the 60th annual ASCL Awards.

Read on for details on this year’s award categories.

ASCL INDUSTRY EXCELLENCE AWARD

ASCL SUPPLY CHAIN MANAGEMENT AWARD

Prestigious Industry award presented to an outstanding individual who has had an impact across the industry or an impact benefitting the industry as a whole and/or across time.

Criteria: • Must be an Australian resident.

• Achievement that has provided change, improvement, education, support, development, implementation or significant results that has bettered their own or general supply chains or the industry as a whole.

Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. This award recognises an organisation that can demonstrate significant achievement or improvement within a section or across their entire supply chain.

Criteria: • M ust be an organisation or company not an individual – open to all industries.

The ASCL Industry Excellence Award will be presented to an outstanding individual who has had an impact across the industry.

• N ominees should be able to clearly state the design and achieved results of the project or process envisaged and then implemented.

• Must be a general measurable improvement of the entire supply chain or a part thereof.

ASCL FUTURE LEADERS AWARD This award provides an incentive and recognition to an outstanding Supply Chain Industry Future Leader and to encourage and support leadership across the industry.

Criteria: • A ny person under the age of 30 that

ASCL FUTURE LEADERS AWARD PRIZE SPONSOR

The winner of the 2021 Future Leader Award will receive enrolment into Leadership Management Australia’s (LMA) “The Performance Edge” 10-week development course.

LMA has been delivering our proven leadership, management, sales and team training and development solutions to clients for over 45 years in Australia.

“We improve the productivity of organisations by improving their people, making them better organised, better communicators and better equipped to resolve issues. Our learning process is unique, proven and guaranteed, producing measurable results and an identifiable R.O.I. providing our participants lasting attitudinal and behavioural changes. We don’t train people, we develop them and there’s a massive difference.”

For further enquiries please contact LMA on 1800 333 270

MHD SEPTEMBER 2021 | 55

MHD SCLAA

The ASCL International Supply Chain Award is given to a company, institution or an individual that operates internationally.

has shown proven commitment to learn and gain knowledge and has applied their achieved skills to deliver improvements within their supply chain field.

• Particular attention will be given by the judges where nominees have been encouraged and able to use new techniques, technology or developed new processes.

ASCL AUTOMATION, ROBOTICS OR EMERGING TECHNOLOGY AWARD The supply chain world is changing quickly, and physical technology is making a huge impact. This inaugural award recognises that, in addition to data management, significant impacts are occurring through devices, robotics, automation, wearables and other emerging physical technologies.

Criteria: • Open to organisations who have implemented or who consult on, or implement, emerging technologies to improve supply chains or an aspect of the supply chain.

• Outline the business issue that was addressed.

• D emonstrate how this was implemented and the measurable impact of that change.

56 | MHD SEPTEMBER 2021

ASCL TRAINING, EDUCATION & DEVELOPMENT AWARD Training, education and development remains a vital part of allowing knowledge to be utilised for new ideas and supply chain improvements to be discovered and then implemented. This award will be presented to a company that can best demonstrate their commitment, application and results of providing training, education and development of their people.

Criteria: • Open to all training, education and development initiatives where benefits to the company and/or employees is demonstrable. (In the case of training bodies or Academic institutions, impact on the industry as a whole will be considered.)

• M ust demonstrate commitment to, investment in or active ongoing development of supply chain industry participants.

ASCL INTERNATIONAL SUPPLY CHAIN AWARD In recognition of global supply chains, the ASCL International Supply Chain Award is given to a company, institution or an individual that operates internationally. Either: an Australian entity with international impact; an international entity with

impact on the supply chain industry in Australia; or an Australian company impacting supply chain internationally.

Criteria: • M ust demonstrate impact on Australian supply chains, or the expansion of ideas, products, systems or processes from Australia to overseas markets.

• Can be an individual or organisation.

• Must have an international aspect to the submission under definition.

ASCL ENVIRONMENTAL EXCELLENCE AWARD The ASCL Environmental Excellence Award recognises corporate leadership or projects within our industry contributing to environmental corporate responsibility, the circular economy and/or protecting the environment.

Criteria: • Must be able to demonstrate leadership towards environmental goals or a project relating to the improvement of the environment.

• The result(s) must be measurable.

• A service or initiative that clearly contributes to sustainability through a change in processes, or reduction or re-use in energy, waste, materials or natural resources.

MHD SCLAA ASCL BIG DATA, IT & BUSINESS INTELLIGENCE (BI) AWARD This Award focuses on digital innovations that improves or offers a new way of delivering value to the supply chain using Big Data, IT and BI. Award nominees will demonstrate where applying use of existing or new digital technologies, methodologies or frameworks have provided significant improvements to their management of information and/or their supply chain processes.

Criteria: • Must be a software, data, application or systems improvement.

• Must explain the issue being addressed.

• Nominees will demonstrate where the use of Big Data, IT, BI or datadriven systems have significantly impacted their IT management and/ or their supply chain processes.

ASCL START-UP AWARD ASCL recognises that any start-up company faces a tough road. This award recognises those tenacious individuals and companies who push through from inception to success.

Criteria: • Open to all industries related to supply chain and can be from any sector servicing the supply chain.

The Big Data, IT & Business Intelligence Award focuses on digital innovations that improves or offers a new way of delivering value to the supply chain.

• M ust be under 5yrs old as a registered entity.

• Must have essentially started the business/service/ company from scratch (i.e. not inherited or purchased an ongoing business).

ASCL LOGISTICS MANAGEMENT AWARD The recipient of this Award may stem from nominees for any of the other SCLAA awards, at the judges’ discretion, where the demonstrated achievement, improvement or results have required a logistical approach to improvement or major change to their logistics management.

The winner of this Award can be an individual or organisation working or

operating in Australia. The recipient of this award is nominated by the Judging panel, the SCLAA Board or can be selected from any of the submissions. The nominees will be judged on their demonstration of a clear application of logistics improvement that is unique, innovative or reforming to the organisation or the industry. ■ To make a submission, www.cognitoforms.com/ SCLAA1/_2021AustralianSupply ChainLogisticsAwards For other information or inquiries call 1300 364 160 or email secretary@sclaa.com.au

The Logistics Management Award may stem from nominees from any of the other SCLAA awards, at the judges’ discretion.

MHD SEPTEMBER 2021 | 57

MHD ALC

FREIGHT AND SUPPLY CHAIN WORKERS DESERVE VACCINE PRIORITY

The ALC says that it’s time Government prioritised freight and supply chain workers for vaccination, given the frontline risks they face every day ensuring essential supplies reach destination.

F

reight and supply chain workers have been at the frontline since the beginning of the pandemic.

In March 2020, Australia confronted distressing scenes of empty supermarket shelves and vulnerable community members going without necessities due to panic buying. Industry mobilised to meet our community’s needs, and workers deemed ‘essential’.

In response to the COVID-19 threat, we saw the efficiency and speed by which public policy and legislation could be drafted and enacted by the National Cabinet approach – and the country reaped the benefit of the federation working together. However, it is now evident this approach has once again fallen back to the old familiar practices we used to see with COAG (Council of Australian Governments). Cabinet leadership is disenfranchised, with each State and Territory going its own way based on the risk profiles of its leaders – and at times neglecting the best advice on hand. We are witnessing this through the glacial pace of the national

58 | MHD SEPTEMBER 2021

vaccination rollout and snap lockdowns.

Every day Australians now appreciate the essential work undertaken by freight and supply chain workers.

Unfortunately, government lacks empathy for this workforce.

Governments have failed these workers by their lack of inclusion in the early phases of the vaccine rollout. With each new set of lockdowns, we see new requirements thrust onto this workforce, often without prior warning. Many workers report having undergone over 50 tests since the start of the pandemic.

However, they continue to get on with their jobs despite the increased requirements and stress of going into high-risk situations.

The sector’s workers undergo mandatory COVID surveillance testing every seven days – and as frequently as every 72 and 24 hours in some jurisdictions – to facilitate travel between state borders delivering essential items to communities.

It makes logical sense that the government should prioritise vaccination

“

Every day Australians now appreciate the essential work undertaken by freight and supply chain workers. Unfortunately, government lacks empathy for this workforce.

”

MHD ALC

Freight and supply chain workers are prioritised for COVID-testing, and so should also be prioritised for vaccinations, says the ALC.

for workers being tested with high frequency – because they are the ones most at risk.

These workers need to be prioritised.

Businesses and operators have gone to great lengths to encourage compliance and protect their workforces and the communities they serve, including proximity detectors for workers in distribution centres, workforce bubbles, sophisticated COVIDSafe plans, and on-site COVID testing facilities.

These businesses are offering to set up on-site vaccination facilities to protect the health, safety and wellbeing of their workers (and ultimately communities) by reducing the risk of transmission in distribution centres and by long-haul and lastmile drivers.

The Commonwealth controls the supply of vaccines, and without access, these businesses cannot set up these facilities.

Australia has a significant stockpile of AstraZeneca and ATAGI has changed its advice in line with the risk posed by COVID in the community.

Industry should have access to Pfizer and AstraZeneca vaccines to set up on-site vaccination facilities run by contracted health providers, similar to how on-site testing facilities operate.

The freight and supply chain has not faltered during the pandemic. Every day, these workers continue to go into high-risk environments to ensure we all receive our essential goods and commodities. It is now time for governments to acknowledge the risk these essential workers undertake by providing support via access to vaccinations and accessible testing on-site and off-site to ensure their safety and that of the community. ■ For further information please contact: policy@austlogistics.com.au

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MHD PRODUCT SHOWCASE

COMBILIFT’S COMBI-PPT MODELS

ADIONA TECH’S ROUTE PLANNING PLATFORM

The COMBI-PPT Pallet Truck is a highly versatile option, suitable for small- to medium-sized warehouses and production facilities, with a lifting capacity of up to 16,000kg.

Adiona’s powerful route planning and optimisation engine is used to power millions of global deliveries and is adapted specifically for Australian conditions. Its proprietary machine learning engine automatically adapts the routing to real traffic conditions and road network differences between metro areas and regional areas, enabling customers to achieve over 99.5% on-time and in-full deliveries across many industries such as FMCG, grocery and meal kits, retail, parcels, and more. Adiona has a unique licensing model with unlimited users and vehicles that scales predictably to the size of the business. It features a fast and easy integration capability to a range of ERP and TMS systems, and it is also commonly used as a network planning and simulation tool for innovative business models.

The COMBI-PPT comes in a variety of models suitable for different applications. One of Combilift’s most highly customisable units, its capacity is available from three to 16 tonnes. The unit can be modified to allow movement of almost any large, heavy object, and can be customised for handling awkward loads, such as steel coil.

One model, the COMBI-HC-PPT, is a High Capacity Powered Pallet Truck equipped with Combilift’s patented multi-position tiller arm. This model offers safer operation, maximum operator visibility and narrow aisle performance.

For more information, visit www.adionatech.com

For more information, visit www.combilift.com/combi-ppt/

ANDROID RF USER INTERFACE FOR MICROLISTICS WMS Designed to maximise ease-of-use for Android-based RF devices in the warehouse, the new Microlistics WMS graphical user interface is clean and intuitive.

The interface improves operator speed, reduces keying and navigation errors and reduces training time for new staff.

Compatible with leading Android RF devices, the new UI is available with the latest versions of Microlistics WMS. For more information, visit www.microlistics.com

MANHATTAN ACTIVE WAREHOUSE MANAGEMENT Manhattan Active Warehouse Management (WM) is more than a WMS – it is a unified supply chain execution tool that combines all demand, supply, labour, slotting and automation into a versionless software solution built on the cloud, using microservices so you never need upgrading. WM offers continuous access to innovation, with new features and updates released every 90 days. And all that innovation is extensible – so you can extend the data model, access APIs and exit points and configure the interface without any impact to receiving newly released features and updates.

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

MHD SEPTEMBER 2021 | 61

MHD PEOPLE ON THE MOVE

BROUGHT TO YOU BY

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

BRAND SERVICES ESTABLISHES CEO POSITION

ALC’S NEW CEO

Paul de Guingand has been appointed to the newly established position of Chief Executive for Brand Services and its

Brad Williams has taken the reigns as the Australian Logistics Council’s (ALC) new Chief Executive Officer. Brad brings with him more than 25 years’ experience in

related entities. Paul will use his experience in senior supply chain, logistics and commercial roles for leading global and

policy development and advocacy across a range of sectors including agriculture, resources, government and energy. Brad

Australian companies including Bunnings, Carrier Air-Conditioning, Cellnet and Cargo Services Logistic in his new role.

also served as a Chief of Staff to a former Deputy Prime Minister and Minister for Transport and Regional Services.

CBRE WELCOMES NEW NEGOTIATOR

FROM OLYMPIAN TO CBRE

Blake Grewar has joined CBRE Victoria’s Industrial & Logistics business as a Negotiator focusing specifically on middle markets in Melbourne’s western suburbs, having previously worked three years as an Executive in JLL’s industrial space.

Nick Purnell joins CBRE as a Negotiator within Industrial & Logistics, focusing on Sydney’s South West market. Nick previously worked in the Victorian CBRE Industrial & Logistics team, before competing at the Tokyo Olympics in men’s eight rowing.

FUZZYLOGX BRINGS ON PORTFOLIO MANAGER Katie Walcavage has joined FuzzyLogX following on from a career over the last 15 years focused on the operations of electrical, mining, civil, rail, robotics and logistics automation – later transitioning into planning and management fields.

She is now very excited to take on a new endeavour as Portfolio Manager with the Fuzzy LogX team.

CATCH APPOINTS NEW HEAD OF FULFILMENT TECHNOLOGY Leading e-commerce marketplace Catch has announced the placement of Sene-Li Wong in a newly created role of Head of Fulfilment Technology. In the new role, SeneLi will be responsible for the creation, design and integration of all fulfilment related technologies across the Catch network.

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

62 | MHD SEPTEMBER 2021

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Crown’s V-Force® Lithium-Ion Energy Storage Systems can improve performance and productivity, with technology that provides more consistent power output throughout the entire battery discharge cycle. Shorter recharge times and better charge acceptance characteristics make them an ideal alternative power solution for opportunity and fast charging applications.

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