MHD Nov-Dec 2019

NOVEMBER / DECEMBER 2019

CONSIDERING AIR FREIGHT

How to capitalise on changing demands

AUTOMATION IN THE DC Creating a safer, more ergonomic environment

COVER STORY

REVOLUTIONARY PICKING SOLUTIONS BOOSTING PRODUCTIVITY WITH A BRAND-NEW APPLICATION FOR AUTOMATED ROBOTS

Cohesio Group

Körber AG

Cohesio Group is now a part of Körber AG, joining the rich portfolio of Körber Logistics Systems, a global home of innovative logistics solutions.

Cohesio’s journey of innovation, excellence & tech transformations will now be enriched by a joint force of excellent people. We are all pumped! An exciting roadmap of solutions backed with guts, technology & global partnerships is on its way. cohesiogroup.com koerber.com/en koerber-logistics.com/en

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MHD FROM THE EDITOR

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

THE TEAM CEO: John Murphy Publisher: Christine Clancy Group Managing Editor: Sarah Baker Editor: Melanie Stark Business Development Manager: Bowie Phillips Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Kerry Pert, Madeline McCarty Client Success Manager: Janine Clements

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

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

COPYRIGHT MHD magazine is owned by Prime Creative Media.

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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.

ARE YOU READY FOR PEAK SEASON?

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he final quarter of the year is now in full swing, with retailers and logistics providers gearing up to deliver what Australia Post has predicted will be the busiest peak period in Australia’s history.

A record number of gifts, food and alcohol will be purchased and consumed this coming holiday season and it is the logistics industry that will be working relentlessly to refill and restock the nation’s shelves.

The logistics challenges get more complex every year, with consumers pushing for faster and cheaper delivery times. This puts pressure on even the most sophisticated of operations.

Delivering on service level agreements and meeting customer expectations are even more important when the volumes are sky high, and these demands will be felt across the entire logistics and supply chain operation.

In this edition of MHD, many senior professionals across the industry share their tips for how to cope with peaks in demand.

While most of the planning and preparation has taken place throughout the year, I wanted to take this opportunity to pause, ahead of what will be a stressful and challenging time, to congratulate the logistics, materials handling and supply chain industry for continuing to deliver despite the increase in demand and expectations.

Australians will spend more than $25 billion on Christmas this year, and all of those gifts and consumable goods will be moved through a warehouse, transported across the country and into the homes of Australian families so that they can enjoy the very best produce and goods at Christmas time.

I hope that many of you get some time to not only enjoy the break, but take a moment to acknowledge that it’s your industry that truly delivers the magic at this time year.

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

MHD Supply Chain

MHD NOVEMBER / DECEMBER 2019 | 7

ADDING VALUE TO YOUR BUSINESS. THAT’S THE TOYOTA ADVANTAGE.

At Toyota Material Handling we recognise that choosing the right supplier is just as important as choosing the forklifts and warehouse equipment that will meet your needs. That’s why we’re dedicated to delivering: Quality, durability and reliability World leading safety Nationwide parts and service Lower lifetime cost of ownership Tailored business solutions As Australia’s leading forklift company, it doesn’t matter whether we are supplying you with a single spare part, a rental forklift, or helping you manage your entire fleet, our objective and commitment remains the same – adding value to your operation. That’s the Toyota Advantage.

1800 425 438

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S O L U T I O N S F O R E V E R Y PA L L E T ®

21/12/2018 9:34 AM

9:34 AM

ISSUE #6 VOLUME 49

NOVEMBER / DECEMBER 2019

THIS ISSUE COVER STORY

COVER STORY

20 Home-grown innovation

MATERIALS HANDLING 04 Toyota preferred by Coates Hire 58 Forklifts for the future 64 Importing expertise

SUPPLY CHAIN 05 New frontier for Flinders Ports 24 Why it’s time to ditch the set and forget model 28 The rise of e-commerce 34 Attracting and retaining talent 38 Major productivity boost for Asahi 42 Predicting the unpredictable 50 How to solve the omnichannel challenge 52 The benefits of automation in the DC 54 Accelerating growth 60 Lessons from an e-commerce leader

20

TECHNOLOGY 44 World-class mobility solutions

EVENTS 62 Showcasing supply chain leaders

PRODUCT SHOWCASE

NOVEMBER / DECEMBER2019

CONSIDERING AIR FREIGHT

How to capitalise on changing demands

AUTOMATION IN THE DC

Creating a safer, more ergonomic environment

28

46 Why MBI prefers Trelleborg tyres 48 Demand genuine Dexion

DEPARTMENTS AND REGULARS 10 News 68 Women in industry 70 Property focus 72 ALC 74 ASCI – contacts, courses and news 76 From the SCLAA 78 The last word

COVER STORY

REVOLUTIONARY PICKING SOLUTIONS BOOSTING PRODUCTIVITY WITH A BRAND-NEW APPLICATION FOR AUTOMATED ROBOTS

ON THE COVER Swisslog has developed a new automated solution that utilises fixed and mobile robot technology.

In an MHD exclusive, inventor Paul Stringleman reveals all.

52 MHD NOVEMBER / DECEMBER 2019 | 9

MHD NEWS

Amazon to open third warehouse in Australia

A

mazon has announced further expansion in Australia with the opening of a new fulfilment centre (FC) in Perth. The facility – planned to begin operations in late 2019 – is located in the Perth Airport Business Precinct and the company says it will enable faster delivery to customers across the State.

“We are excited to be establishing our next fulfilment centre in Perth.

This expansion represents the investment and development of our growth strategy in Australia,

following a steady and progressive increase in customer demand. This new facility builds on the capabilities of our first two fulfilment centres in Melbourne and Sydney, allowing us to continue to fulfil our commitment to fast and reliable deliveries for customers across the country. We strongly believe that this further investment will benefit both customers and the local economy and give Western Australian (WA) customers quicker delivery of high demand items,” Craig Fuller, Director

Operations, Amazon Australia said.

The fulfilment centre in Perth, along with the existing buildings in Sydney and Melbourne, will allow Amazon to handle current and future customer demand and speed up delivery to customers across the country, the company says.

Amazon opened its first fulfilment centre in Australia, located in Dandenong South, Melbourne in December 2017, followed by a second fulfilment centre, located in Moorebank, Sydney in August 2018.

Körber acquires Australianbased AMR solutions provider

K

örber has acquired a majority stake in Australian-based Cohesio Group, an integrator of voice-directed and autonomous mobile robotics (AMR) solutions for logistics.

Cohesio Group, headquartered in Melbourne, has established itself as one of the leading providers of voicecontrolled and robotics software solutions for the logistics industry, particularly in the Asia Pacific region (APAC).

Cohesio will complement Körber’s existing voice solutions business with its market-leading brand Voiteq. This strengthens one of the world’s largest and most experienced Honeywell Vocollect voice integration teams. Cohesio has also pioneered the deployment of autonomous mobile robotics solutions in the region.

“With Cohesio, we are underpinning our claim to ‘market leadership through technology leadership’ in the futureoriented fields of voice and robot technology. We are also expanding our presence in the particularly fastgrowing markets of the APAC region, where we are able to inspire and support our customers with the best products and solutions for the supply chain,”

Stephan Seifert, Chairman of the Group Executive Board at Körber AG said.

“We feel fortunate to have found a partner in Körber that can help accelerate the next stage of growth for Cohesio. Körber offers us an innovative culture, a broader portfolio of complementary supply chain technologies and access to customer relationships on a global scale. The Cohesio founders and the entire Cohesio team are very excited to be part of this international technology group,” Nishan Wijemanne, CEO of Cohesio Group said.

“With its broad, technology-oriented product and service portfolio, Cohesio is an ideal fit for us and our growth ambitions. By adding Cohesio, we are in an even stronger position to offer customers the right supply chain technologies and service them on a global level. The Cohesio team is characterised by entrepreneurship, years of experience with logistics technologies, and a history of good partnership with its customers,” Dirk Hejnal, CEO of the Körber Business Area Logistics Systems said.

Nishan Wijemanne, CEO at Cohesio Group (left) with Chad Collins, CEO of Körber Logistics Software.

10 | MHD NOVEMBER / DECEMBER 2019

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MHD NEWS

Australia Post opens largest mail facility in Southern Hemisphere

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oors have opened and parcels are being processed at the Brisbane Parcel Facility, Australia Post’s newest and largest facility, ahead of what will be the organisation’s busiest peak Christmas period in history.

The site features technology including Automated Guided Vehicles, robotic arms and parcel pickers, the facility will be able to process 700,000 parcels per day at full capacity and will have 500 employees onsite.

Australia Post Group Chief Operating Officer, Bob Black, said he was thrilled to mark an early start to the Christmas peak period by opening the 50,000 square metre facility on a 130,000 square metre site.

“Australians love online shopping, spending $27.5 billion nationally online last year and this facility will be able to process those parcels more efficiently right across the network – getting it from merchant to customer quicker,” he said.

“Queenslanders are big online shoppers, with three of the top 10 postcodes – Toowoomba, Mackay, Bundaberg – each experiencing strong growth all above 20 per cent in 2018.”

“What we’re also finding is that shoppers are jumping online earlier to snap up deals in annual online sales events, which means we’re getting bigger volumes, earlier in the peak period,” Bob said.

Minister for Communications, Cyber Safety and the Arts, the Hon Paul Fletcher, congratulated Australia Post on the opening of its new Queensland facility which will allow it to keep pace with the increasing demand for parcel deliveries Australia wide.

“I’m pleased to see Australia Post modernising its facilities to meet the needs of Australian consumers who are increasingly making the most of convenience of online shopping. Not only will the new Australia Post mail

facility provide jobs for 500 people, the adoption of innovative technologies will improve employee health and safety and help the company deliver more parcels to Australian homes and businesses faster than ever,” Minister Fletcher said.

Last year Australia Post delivered over 40 million parcels in December, and on two occasions delivered more than 3 million parcels in a day. This year, volumes are already greater than they were at the same time last year – with the period around Mother’s Day already the biggest since Christmas.

Over the coming peak Australia Post expects to deliver up to 3.5 million parcels on its busiest day, facilitated by a national $900 million, threeyear investment in infrastructure and automation.

The $240 million investment in the flagship facility comes complete with two high-speed sorters capable of processing over 50,000 parcels per hour, four robotic arms that can

together clear 320 cages per hour, a parcel picker that can move 2,500 parcels per hour, and 23 automated guided vehicles that can lift and move objects weighing up to 1.4 tonnes each then place them down to an accuracy of ~5mm.

With 3,244 solar panels that generate enough energy to power 280 homes per year – the facility is another important milestone in Australia Post’s transformation from a letter business to a growing ecommerce delivery and services organisation.

“The new automation means we can process more parcels, faster, more safely and more securely than ever before,” Bob said.

“As we approach Christmas, we’ll have more planes in the air, more vehicles on the road, more people in our facilities and on the phones, and our Post Offices will be open longer so we can deliver our customers the best festive season yet.”

The new facility will be able to process 700,000 parcels per day.

MHD NOVEMBER / DECEMBER 2019 | 13

MHD NEWS

TomTom Telematics to operate under new name

T

he company previously known as TomTom Telematics will operate under the new name Webfleet Solutions.

Webfleet Solutions will continue to provide exactly the same products and services TomTom Telematics was known for, including WEBFLEET, NEXTFLEET, LINK devices and the range of PRO Driver Terminals.

While no longer a business unit of the TomTom Group, having been acquired by Bridgestone Europe in April 2019, Webfleet Solutions will remain a

key business partner of TomTom and continue to utilise its award-winning Traffic and Maps in its services.

“Twenty years ago, we launched our WEBFLEET fleet management solution from our original office in Leipzig, Germany. We were forerunners in using cloud and internet technologies to help fleets and companies with commercially used trucks, vans and cars to boost productivity, increase safety and sustainability, enhance customer satisfaction and increase the overall efficiency of their fleet operations,”

Thomas Schmidt, CEO and Managing Director, Webfleet Solutions said.

“Today, we serve more than 50,000 customers with vehicles driving in 100 countries. As Webfleet Solutions, we will go further than just providing telematics solutions. Bridgestone gives us the perfect platform from which to do so, supporting us to create a wider scope of services for more customers across the world. With us, Bridgestone EMEA now manages 1.2 million mobility and fleet management subscriptions.”

AHG Refrigerated Logistics to open new DC in Queensland

A

utomotive Holdings Group Refrigerated Logistics (AHGRL) will open a new depot in Mackay ahead of the busiest period of the year.

The new facility will feature frozen, chilled and ambient storage capability across two rooms and four temperature controlled docks with capacity for 1600 pallets.

The depot represents a significant upgrade on AHGRL’s existing Mackay operations and according to the company offers customers greater flexibility in their supply chain by enabling more efficient movement

The new depot will employ 20 people and serve the broader Mackay region.

of bulk product closer to their end consumers.

The new depot will employ 20 people and serve the broader Mackay region including the Bowen basin and Whitsunday Islands, complementing AHGRL’s existing Far North Queensland operations in Cairns, Tully, Innisfail, Mareeba and Townsville.

AHGRL CEO Stephen Cleary said the new Mackay depot would be operational by the end of November in time for the lead up to the busy preChristmas period.

“Our new facility in Mackay will give us 24 depots, cross docks and cold stores each linked by our extensive road and rail fleet that together forms Australia’s only truly national temperature controlled network,” Stephen said.

“We’ve already seen volumes start to increase across our operations, and with temperatures increasing our network positions us uniquely to provide customers with cold solutions that maintain temperature and product integrity all around Australia, underpinning our ability to grow the

services we provide to our key customers.”

Mr Cleary said the investment in Mackay was a prime example of the business continuing to invest in its network to better support our customers and drive future growth.

“Even with the AHGRL sale process well advanced, our new owners AP Eagers have continued to support the business with further investment. In recent months we have also invested more than $10 million to acquire additional fleet assets including new prime movers, fridge vans and rigid vehicles, while also investing in the upgrade of our network as we’re doing in Mackay,” he said.

“Our sales team has recently generated in excess of $10m in new road transport sales revenue.

Rail services to WA have also been extended with one of our oldest customers and a national three year renewal with our largest nonprotein customer further expands our provision of warehousing and linehaul across retail and industrial distribution channels throughout their larger group,” he concluded.

14 | MHD NOVEMBER / DECEMBER 2019

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MHD MATERIALS HANDLING

TOYOTA FORKLIFTS PREFERRED BY COATES HIRE One of the nation’s largest rental companies, Coates Hire, has adopted Toyota Material Handling forklifts as its majority brand, with over 600 in its fleet nationally.

T

hirty-year Coates Hire company veteran, Executive General Manager - Fleet, Peter Davis, says TMHA’s history with Coates Hire stems back nearly 20 years and has significantly ramped-up in the last decade.

“We’ve been dealing with Toyota Material Handling for a long, long time - close to 20 years, on and off. In the last 10 years, especially, Toyota has made up the majority of our industrial forklift fleet,” Peter says.

He says the shift came after the business adopted more stringent procurement methodologies. “We’ve always known Toyotas to be a good, solid product, that’s why we’ve had them in our fleet for so long, but more recently we have become stringent in how we procure our equipment. It’s important for us to be in front of the technology and safety curves because for us a forklift is typically a 10-year investment.

TMHA President and CEO, Steve Takacs, says the relationship with Coates Hire has been helped by both businesses having an acute understanding of hiring models.

“Having similarities in our business models helps us better understand each other, so we can accurately assist with their goals and provide the best product solutions,” Steve says.

“One of the key things we understand 16 | MHD NOVEMBER / DECEMBER 2019

about their business is the emphasis they place on reducing total cost of ownership - which is a major tenet of the Toyota Advantage.

“The nature of their business is to focus acutely on numbers. Like any rental business, they’re in it to make money and if they can get a product on board that gives them less down-time they’re going to make more money.

They’re also going to have more customer satisfaction.”

Peter says Coates Hire primarily rents Toyota forklifts out to customers in heavy industry, meaning its equipment must be up to the task. “’We’re not small handyman hire. We primarily supply to the construction and mining industries where equipment gets a hard life compared to, say, a warehouse. So it’s paramount that our forklifts are tough and last the distance. That’s why quality, durability

and reliability are so important to us.

“The Toyota product is market-leading in that regard, which makes it great for our total cost of ownership.”

Steve says he is proud to see Coates representing TMHA forklifts to its customers. “I take quite a bit of pride when I see one of our forklifts with a Coates sticker on it doing the business on a building site.

“Their customer is at arm’s length to us. Both of our companies are blue chip and our reputations are of the utmost importance. Having both of our brands together sends a message and helps build confidence amongst customers. They know they’re renting a reputable piece of equipment from a reputable company.”

For more information freecall 1800 425 438 or visit www.toyotamaterialhandling. com.au ■

Steve Takacs, TMHA President and CEO (left) and Peter Davis, Executive General Manager at Coates Hire.

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MHD SUPPLY CHAIN

NEW FRONTIER FOR FLINDERS PORTS HOLDING After recently commencing operations at Outer Harbor, the international gateway for South Australia, Flinders Ports Holdings has launched a new warehousing and distribution business.

Flinders has the capacity to handle all types of cargo.

“ L

ocated adjacent to the Flinders Adelaide Container Terminal (FACT), Flinders Warehousing and Distribution (FWD) provides fully-integrated supply chain services including warehousing, distribution and seamless access to rail and road transportation services.

The company has the capacity to handle all cargo types including out-of-gauge (OOG) cargo, standard containers and pallets, for long or short-term storage. The direct transfer of OOG cargo from FACT to FWD will allow cargo to be unpacked, without the need for road transport and associated permits for the first move, and will significantly improve delivery times to the final destination.

“The launch of Flinders Warehousing and Distribution marks another major milestone in the expansion and modernisation of Port Adelaide. FWD will deliver time and cost savings for South Australia’s importers and exporters while enabling them to have a seamless integrated supply chain solution.

“Our new offering will also provide supply chain security, predictability, and efficiency to key export and import dependent industries

including the commodities, defence, and renewable energy sectors all of which have high volume, variable loads to transport,” Stewart Lammin, CEO at Flinders Ports Holdings says.

FWD is operating from two secure locations, both with strategic links to the Outer Harbor Container Terminal. The first site includes 30,000sqm of hardstand, a wash bay to meet Biosecurity requirements (subject to licensing, application underway) and two large shelters.

The second site offers 20,000sqm of warehousing with fully enclosed loading bays to ensure the protection of weather sensitive cargo. This site is under preparation for both Customs (77G Depot) and Biosecurity Licensing. Biosecurity Licensing is proposed to include Class 1.1, 4.3 and 4.6 and the recently created Class 4.7, which allows for the partial unpack of containers for effective fumigation requirements attached to the BMSB seasonal measures.

FWD will work directly with global and local businesses to deliver tailored solutions that offers online visibility across the supply chain. ■

Our new offering will also provide supply chain security, predictability, and efficiency to key export and import dependent industries including the commodities, defence, and renewable energy sectors all of which have high volume, variable loads to transport.

”

18 | MHD NOVEMBER / DECEMBER 2019

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MHD COVER STORY

Using automation provides precision and high order accuracy.

HOME-GROWN INNOVATION When it comes to efficiency gains and improving productivity, it’s not always about repeating what has been done before. Paul Stringleman, Senior Consultant at Swisslog has developed a new application for existing technology that has the potential to revolutionise the warehouse environment.

P

roducers in the Fast-Moving consumer Goods (FMCG) arena are driven to implement innovative technology and automated solutions that will improve efficiency and productivity, Paul Stringleman, Senior Consultant at Swisslog says.

Paul began his career in intralogistics 20 years ago in Tokyo, Japan and has spent 15 of the past 20 years living abroad and 20 | MHD NOVEMBER / DECEMBER 2019

MHD COVER STORY

The word star in the name CarryStar refers to order picking robots that are in a star configuration. designing large-scale automated systems for airports and distribution centres.

More recently, Paul has developed several data driven automated warehouse solutions for companies in Australia.

Influenced by the Japanese principles of Kaizen, Kaikaku and Kakushin, Paul has been working on a new development for automated mobile robots.

In business improvement theory, Kaizen means evolutionary change, Kaikaku means revolutionary change and Kakushin means new and transformative change or innovation.

“Kaizen is a companywide, never-ending process that involves everybody (continuous improvement), whereas Kaikaku has a discrete project timeframe and involves just a few people. Typically, it has a very high impact on productivity through the business, such as implementation of fully automated processes,” Paul explains.

Kakushin is when the opportunity arises to take a genuinely innovative approach, solving a problem in an entirely new and transformative way, Paul says. “With our latest invention CarryStar, we developed such a solution by evaluating current best practices in automation, applying Kaizen principles to Kaikaku transformational

technology to create something new and transformative – Kakushin,” he says.

CARRYSTAR SOLUTION Developed here in Australia by Paul, CarryStar is a new automated solution, that utilises fixed and mobile robot technology, to solve a common problem in a new and transformative ways. Therefore, subscribing to the Japanese principle of Kakushin.

“We looked at existing solutions for layer and stack picking and noticed that they all relied on conveyors. We were aware of the challenges that conveyor-based solutions have and saw an opportunity to solve the problem in a more efficient way,” Paul says.

“We named our solution CarryStar the word “carry” refers to the team of autonomous mobile robots (AMRs) which transport pallet loads of goods around inside the system, while the word “star” refers to order picking robot(s) which are in a star configuration,” Paul says.

CarryStar takes pre-existing technology, order picking robots, which are 10 to 20 times more productive than manual pickers in a multi-shift environment and combines them with AMRs, removing the need for conveyors completely.

The fully automated process starts with a

“

If one AMR needs maintenance then you can just remove it from the operation and fix it in a maintenance area, meanwhile the picking and packing continues.

”

MHD NOVEMBER / DECEMBER 2019 | 21

MHD COVER STORY

All CarryStar needs to be installed is a flat floor.

pallet infeed station in which autonomous vehicles receive the pallets on heavy duty steel tables and transports them to buffer positions and to the picking locations around a KUKA palletising star robot.

The star robot module can be configured to pick layers, stacks or individual crates or cases to create rainbow, sandwich or mixed SKU stack pallets to fulfil the daily orders, making the solution ideal for the FMCG sector.

Once an order pallet is complete, the AMR vehicles can transport it either directly to a pickup location, or to a pallet wrapper, where they can be automatically wrapped and labelled before despatch.

Paul says the concept was partly inspired by new developments in the global automotive industry. “In recent years, KUKA has promoted a matrix production system for car manufacturers. This model has been in development for a while now and has already been implemented in a few locations.

It completely removes the restrictions of a production line and creates a smart factory whereby you have independent and flexible robotic cells that work in a matrix configuration, with autonomous mobile robots (AMRs) to carry the vehicles being assembled. I used these principles to create something new for the warehouse environment,” he says.

22 | MHD NOVEMBER / DECEMBER 2019

CONVEYOR-LESS PICKING Once the need for conveyors is removed, there are a number of benefits that can be realised, Paul says. “CarryStar improves flexibility and redundancy. A conveyor is typically fixed to the floor, so if something needs to be reconfigured, or goes wrong then often the entire process needs to be shut down so that it can be worked on.

But with CarryStar, if one AMR needs The robots can transport a full pallet to a pickup location or pallet wrapper before dispatch.

MHD COVER STORY

maintenance, then you can just remove it from the operation and fix it in a maintenance area, meanwhile the picking and packing continues. Very little can stop the system running.”

There are also hygiene benefits.

“Conveyor based solutions are very difficult to keep clean, however CarryStar has minimal fixed infrastructure and can be easily swept and kept consistently clean,” Paul says.

Paul refers to this kind of automation as light automation. “With CarryStar, you don’t have to shut down an entire plant. It is light automation in that it can be relatively quickly set up whilst the rest of the warehouse is fully functional. It’s typically standalone and low-risk but comes with significant efficiency gains,” he says.

It’s lower cost than comparable conveyor-based solutions, and it can also be reconfigured and scaled up relatively easily. “It’s modular so it can grow with your business and ensures a continuously efficient warehouse operation. It requires minimal fixed infrastructure, so it is also very flexible and cost-effective,” Paul says.

MAXIMISING EFFICIENCY FOR THE FUTURE

accuracy, as well as picking labour efficiency.

“It’s a future-ready solution.

Depending on the application and the number of AMRs, it offers between 100 and 300 pick cycles per hour, per star robot and can operate up to 24 hours a day, seven days a week,” Paul says.

A further benefit of the CarryStar is that it is automation that can be introduced into a much older site if needed. “All we need is a flat floor,” Paul says.

Due to its efficiency, flexibility and scalability, there has been a lot of interest in this new solution, Paul says with multiple sales in the first year since it was officially launched at CEMAT in Melbourne and interest growing globally.

“It’s very unique, and because it’s also Kakushin the industry hasn’t seen anything like this before and we have a lot of customers who this could be very beneficial for. It’s a highimpact, low-risk solution that can be implemented in stages, so we see a lot of potential for this in Australia and worldwide,” he says.

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MHD NOVEMBER / DECEMBER 2019 | 23

MHD SUPPLY CHAIN

WHY IT’S TIME TO DITCH THE “SET AND FORGET” MODEL Andrew Coldrey, Vice President, Oceania at C.H. Robinson is urging organisations to take advantage of fluctuations in air freight capacity and demand by considering a hybrid model when it comes to moving freight.

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.H.Robinson figures have revealed that there has been an increase of 2.7 per cent in air freight capacity, while at the same time demand has decreased by 4.7 per cent. This presents a rare opportunity for importers and exporters to look at their current logistics choices and consider using air freight when moving goods.

With this disparity, there has never been a better time to compare different transport modes and the current situation presents an opportunity to review and revise logistics practices for the most efficient and costeffective results.

Usually, carriers are good at matching demand to capacity. But sometimes with air cargo this can shift, as passenger numbers go up then there is also added freight capacity even if the demand isn’t there. This is largely what is happening at the moment.

BUSTING THE MYTHS There are a number of different situations and sectors where air freight can present cost-saving opportunities.

Take fashion logistics for example.

In this industry, you have to be the 24 | MHD NOVEMBER / DECEMBER 2019

first to market; if you’re not there first, the opportunity is gone and your competitor has made the sale.

On the one hand, you may look at air freight and think this is slightly more expensive than road, rail or sea, but if you’re not first to market then you may not sell the product at all, costing you considerably more in the long run.

Additionally, with the current economic environment, there is a feeling of caution. Generally, this leads to a more conservative approach to inventory management. With that in mind, it’s commercially beneficial to be able to make as late a decision as possible, when it comes to stock control. Air freight allows you to do this, being able to have the stock you want where you want it.

There is also added benefits with regards to Australia’s unique geography. We have a large geographical space and transporting goods around domestically can be expensive. If you bring in a large quantity of goods into one place and distribute it from one spot all over the country, then that transport potentially becomes very expensive.

One of the benefits of air, when the market comes down and is more

competitive, is that you can make a late decision based on demand. You can send your cargo direct to Brisbane, Perth or Adelaide to avoid the high cost of domestic transport.

REVIEW YOUR STRATEGY AND BE AGILE In supply chain and logistics, it is always important to be agile. With so many variables, including many global issues that are out of our control; the “set and forget” model just won’t do anymore.

I urge organisations to review

MHD SUPPLY CHAIN

One of the benefits of air freight is being able to make a late decision based on demand.

their strategy regularly, to tinker with it accordingly and to take everything into account. It’s not just the initial cost of moving the goods. You have to think about domestic costs, speed to market; there are so many variables that should come into your decision.

People have this mindset that air freight is expensive, but just like passenger airfares, costs can vary enormously. If you want to fly first class in peak season, you will pay the maximum amount for that service.

But you can fly with a budget airline, book well in advance and it will cost significantly less. We have to consider this

mindset when we look at logistics.

There are different levels of service. It’s also a good idea to look at a mixture of different modes depending on your need.

You might do something like air freight to Singapore and then use sea down to Australia or New Zealand. Many different combinations could work.

There has also been a change in the rate structure with air freight. Before it was a tiered rate structure, so the more you bought the cheaper it was. But now when capacity is down we can offer flat pricing so lower rate shipments can actually get the same rate as a higher volume shipment, MHD NOVEMBER / DECEMBER 2019 | 25

MHD SUPPLY CHAIN

Andrew says it’s a good idea to look at a mixture of different modes when it comes to moving freight.

if the availability is there.

Many people still have fixed mentalities when it comes to air freight so in order to capitalise on the opportunities, it’s important to be open to change.

ACCESS TO EMERGING MARKETS The flexibility that air freight offers also provides a number benefits for organisations looking to enter emerging markets. When you’re looking to enter an emerging market, like Eastern Europe, Latin America or China for example, you might not have the infrastructure in place or much demand at first.

If you don’t know the market yet, you may use a platform like Alibaba as an introduction before setting up any physical presence, but you don’t want to send a large amount of inventory if you don’t know how your product will be received.

This is where air freight comes in, you can start off small and only send what you need. Then if your product does well, you can replenish it quickly. This can be a great tool to get a large range to market in small quantities and test what works. Rather than sending huge container loads at a time.

TECHNOLOGY ENABLING SMARTER DECISIONS The need for a high level of visibility becomes even more crucial when you need to make later decisions. The better visibility you have, the better decisions you can make.

You also can’t mix and match different modes if you don’t have a clear picture on where your product is and when. If you 26 | MHD NOVEMBER / DECEMBER 2019

“

People have this mindset that air freight is expensive, but just like passenger airfares, costs can vary enormously.

”

don’t know where things are then you are less reactive to the market.

The more visibility you have the more agile you can be and that’s when we start to move into tools like predictive analytics.

If we as an industry can predict the impact of things like typhoons and hurricane seasons, then we can predict the impact they may have on our supply chains.

At C.H. Robinson we are investing heavily in this kind of technology.

We recently announced an investment of $1 billion USD in technology over the next five years, doubling our previous investment of $1 billion USD in the last 10 years.

This is our largest investment ever in innovation, advanced technologies and talent and we think it will shape the future of the logistics eco system.

Currently, we have 28 data scientists working in this space in-house, with this set to grow over the next five years.

We are excited about the opportunities that this kind of technology can bring for our customers and the industry at large.

About the author Andrew Coldrey, Vice President, Oceania, C.H. Robinson has held various roles throughout C.H. Robinson. Since 1995, he has been an integral member of the Oceania management team. He managed the New South Wales office, generated opportunity for regional growth as manager of international development, and led successful operational and commercial teams as regional director. In February 2019, he was announced as the Vice President for Oceania at C.H. Robinson. ■

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MHD MATERIAL HANDLING

THE RISE OF E-COMMERCE Steve Richardson, Head of 3PL at Australia Post reveals why it was time for the organisation to upgrade their Warehouse Management System.

Despite the increase in demand last year, Fulfilio was still able to offer a great service.

28 | MHD NOVEMBER / DECEMBER 2019

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n 2018, more Australians shopped online than ever before. According to Australia Post’s Inside Australian Online Shopping report this was even more prevalent in end of year financial sales, with the five weeks from 11 November to 15 December accounting for almost 15 per cent of all e-commerce transactions.

Australian shoppers’ appetite for a

bargain has increased since the local launch of global shopping discount days such as Black Friday and Cyber Monday, and in 2018 online purchases during this week grew 28.7 per cent year on year.

This sale frenzy week is now the biggest week for e-commerce purchases in Australia, taking over the first week in December, which was traditionally the Christmas peak for online sales.

Steve Richardson, Head of 3PL at Australia Post reveals. “During these big online retail days, we can grow up to 800 per cent,” he says.

Australia Post’s 3PL business, Fulfilio, specialises in e-commerce fulfilment, offering bespoke 3PL solutions tied into a national network of warehouse facilities and Australia Post’s 11.9 million delivery points – residential homes and businesses – across Australia.

The business recently combined with the group’s established B2B 3PL offering, StarTrack 3PL, after finding success with its renewed focus on designing experience-led, efficient solutions, and is now solving challenges faced by businesses with both B2C and B2B fulfilment needs.

Despite the increase in demand last year and the complex requirements of B2C fulfilment, Fulfilio was still able to offer a great service. “Last year Fulfilio successfully executed the three biggest shopping days in Australian history, and with that we delivered on every single one of our service promises,” Steve says.

While being able to deliver these service-promises was a great win for Fulfilio and Australia Post, the team knew that to continue meeting the fast-growing demands of the future, there was a need for some upgrades to the capabilities of their Warehouse Management System (WMS).

“Online shopping currently equates for 10 per cent of total retail spend in Australia, but this is growing quickly.

MHD MATERIAL HANDLING

to ensure that the organisation had a significant Australian presence. “We wanted to have sales and support here in Australia, we didn’t want to be sold a platform and then have no postimplementation support,” he says.

After careful consideration and exploring a variety of different options, Manhattan Associates was chosen as the provider to design, deliver and build Fulfilio’s supply chain software to support the projected growth of the business.

“Manhattan ticked all of the boxes for us. Being an e-commerce provider we have customers from so many different categories of retail as well as different sized businesses. But whatever they sell, they want all the bells and whistles. With this in mind we knew we needed a sophisticated system and Manhattan provides us with this,” Steve says.

For Steve, one of the most important things for Fulfilio is to partner with

Steve Richardson is Head of 3PL at Australia Post.

In the UK, which Australia generally follows, this figure sits at 20 per cent. So, it’s likely Australia will reach that rate in the not too distant future,” Steve says.

Fulfilio currently operates facilities in Sydney, Melbourne, Brisbane and Perth to cater to the geographical challenges of Australian logistics but faced the problem of disparate, dated systems. “We’ve got four different Warehouse Management Systems across our sites. In addition, these systems are ten-year old legacy systems,” Steve says.

Steve and his team knew it was time to upgrade the WMS and went through an extensive Request for Bid process to find a vendor who could meet the criteria that Fulfilio required.

“We wanted to replace all of our systems with one single system and within that we had a number of particular requirements,” Steve says.

He knew that the system needed to be capable of integrating at the smaller end of the market as well as the larger side of the market. Fulfilio has built a featureheavy platform to give small and large players a portal and control into operations, and Steve recognised that the WMS needed to be capable of also working with both the larger end of the market and more niche businesses.

Secondly, there was a requirement to make the system future-proof. “We knew that our current system would not be able to grow with us as our demand increased so this was a key criterion for us when looking for a new WMS provider. Especially as many of our features are cloud-based,” Steve says.

Finally, it was important to Steve

Fulfilio curently operates in Sydney, Melbourne, Brisbane and Perth.

MHD NOVEMBER / DECEMBER 2019 | 29

MHD MATERIAL HANDLING

customers and be able to design custom solutions that meet their needs with a high standard of service, and engaging a cutting-edge WMS provider helps them to achieve this goal.

The Fulfilio and Manhattan Associates project is in its early stages, with the design phase taking place over the next couple of months and is expected to be fully operational over the next nine to 12 months.

“The design phase is going well. This project is quite unique in that Fulfilio is doing some really cutting-edge work in

The WMS needed to deliver at the smaller end of the market as well as for larger customers.

the e-commerce space. It’s a collaboration, Manhattan is learning a few things about e-commerce and fulfilment along the way,” Steve says.

Fulfilio has employed a dedicated project manager in-house to manage the project and Steve says that Manhattan Associates has implemented the best designer they have.

“I’m really excited about this project and what it will mean for our customers and employees. We will be implementing the new system across all four of our depots and so far I’m really happy with how it is all going,” Steve says. ■

“

Manhattan ticked all of the boxes for us. Being an e-commerce provider we have customers from so many different categories of retail as well as different sized businesses.

”

30 | MHD NOVEMBER / DECEMBER 2019

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MHD SUPPLY CHAIN

ATTRACTING AND RETAINING TALENT IN A HIGHLY COMPETITIVE ENVIRONMENT Regan Brown, Chief Executive at Impex Personnel shares his thoughts on how to attract, retain and empower staff in a technology-driven logistics environment.

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emand for supply chain and logistics talent is increasing, and according to recent research by DHL the demand is now outstripping supply.

According to the Australian Industry Standards each subsector of transport and logistics is expected to grow between now and 2024, with the largest growth projected for freight transport at six per cent.

More than 80 per cent of employers in Australia reported experiencing a skills shortage in the last 12 months.

With occupations being in shortage including drivers, warehouse staff and supervisors and managers.

Employers identified a number of reasons for the shortages, including an ageing workforce, competition from other organisations and the cost and time to achieve the required qualifications and talent.

Technology is reshaping the industry and there are new kinds of skills that are required now and further into the future. According to the Australian Industry Standards the workforce of the future will need to be skilled in digital literacy, cyber security, and data analytics to improve productivity and customer service.

SOFTWARE, AUTOMATION AND SPECIALISM

Regan Brown, Chief Executive at Impex.

34 | MHD NOVEMBER / DECEMBER 2019

One of the biggest trends that I see is the increased level of software automation. Larger corporations have been adopting this technology for the last five or ten years, but now smaller organisations are getting on board.

It’s the software that is really driving the heavy rate of automation of tasks, this is happening in warehouses and distribution centres but also with many office-based roles.

An interesting development is that organisations are now able to specialise in one area. I’m seeing more and more companies take a step

back, have a look at what they are good at and then focus in that area to win the market share in that space.

With the increased utilisation of software, companies are finding that they have a much better understanding of their business than before. The data is telling you that you can focus in one

One of the biggest challenges of today’s workforce is keeping up to date with software.

MHD SUPPLY CHAIN

or two areas and make a lot of money as well as offer better value to your customers.

NEW SKILLS FOR A CHANGING ENVIRONMENT

“

It’s the software that is really driving the heavy rate of automation of tasks, this is happening in warehouses and distribution centres but also with many office-based roles.

”

The biggest change in hiring in this new age of software and automation is that people are looking for candidates with a high level of IT competency.

A lot of our clients tell us that they want to up their digital game, that they want to develop skills and increase spend in this area so that they can get the most out of the software investments they have made.

Globally, there is a huge increase in demand for data scientists. We’re finding that people who are analytically driven are in high demand. But from a talent point of view, there is a shortage of these skills in the market.

With this in mind, our advice is that when you find that talent then it’s more important than ever to snap them up.

The speed of the transaction has to increase dramatically. Interviewing, reference checking and onboarding used to sometimes take a couple of months, but now it needs to be sped up so that you don’t miss out on the talent.

A lot of people with these skills can pick who they work for, so whoever is given

the worst experience when it comes to hiring just won’t get a look in. An efficient experience says to the candidate that you are an innovative company. If the process is dragged out, if they get messed around, then the individual gets a feel of what kind of organisation it is and how innovative it is.

My advice to logistics providers is to use the same approach you would for your customers when it comes to hiring talent.

Logistics is a no messing around kind of industry and it should be the same for recruitment. Organisations need to move as quick as they do when it comes to managing freight. If you don’t, you will get B-grade candidates and lower the productivity and efficiency of your workforce.

UPSKILLING AND RETAINING TALENT One of the biggest changes happening in the skills and recruitment area is that the current workforce needs to be constantly kept up to date with the latest software.

This may mean that you need to invest more in current members of staff and bring them on board in a professional way.

Usually the cheapest way to keep costs down is to invest from within. Of course, hire the roles you don’t have the expertise in, but if someone has part of a skill you need in house, then bring them up to speed and future proof them within your organisation.

In addition, if an employee comes to you for a pay rise then give it to them. It always cost more to replace them than just giving them 10 per cent. It’s about looking after your existing staff and renumerating then accordingly.

If a pay rise is not possible, then there are other ways that you can utilise technology to decrease their workload and make their environment more enjoyable.

One innovative way that you can upskill workers is to utilise mentoring. A mentor mentee relationship should be symbiotic.

The younger generation can work with the more experienced employees to get them up to speed on the digital side of things, while the older generation can mentor the new staff and bring them up to speed on all things logistics and supply chain.

It’s highly innovative to do it this way, both sides have something to gain and become very engaged when it’s a twoway relationship.

Another innovative way to upskill current staff is to identify super users, ie. people who MHD NOVEMBER / DECEMBER 2019 | 35

MHD SUPPLY CHAIN

are very confident with the digital side of things. Once you identify these people, you can use them to bring other staff up to speed.

The benefit of this is that individuals who may need to upskill in digital areas feel confident working with someone they know and trust, instead of using outsiders who may only come in for a few hours at a time and leave people without a full understanding of the software they are using.

EMPOWERING WORKERS THROUGH TECHNOLOGY I cannot speak more strongly about the efficiencies that companies can gain through proper utilisation of the correct software and automation.

While the conversation many years ago was around the complete replacement of certain roles, what we are finding now is that the technology is helping people do their jobs more efficiently instead of replacing them.

A company may have a dozen people in customer service, but when they introduce some smart software, they may not increase headcount but the workload can increase five or six times with the same team. This could be due to more accurate tracking software, for example which could mean less phone calls, less chasing, etc.

Technology, software and automation really empowers workers to be better at what they do and to give them the ability to spend more time doing the aspects of the jobs they enjoy.

It allows for more time with clients, more time on the phone, trucks being able to give a better delivery service, these are often the aspects of the jobs that people wish they had more time to spend on rather than tedious tasks.

For every hour you save through automation, you can spend that on professional development or on future planning. To be able to take people out of their everyday jobs and to have a think about what the future of the business might be is very valuable.

ENGAGE THE EXPERTS In a highly competitive environment such as logistics and supply chain recruitment, it can be very difficult to find the talent you need. At Impex Personnel we have more than 100 years of collective experience in recruitment, and a further 200 years of supply chain and logistics experience.

All of our recruiters have experience in

the supply chain industry, which gives us a huge point of difference in this marketplace. Our people understand the logistics industry and the skills that are needed.

We are in the talent market every day; we know what’s out there and we can make sure that you get the best talent. We pride ourselves on finding the best fit for the marketplace.

Some of the biggest players in the industry use us to source new talent – FedEx, DHL to name a few. They use us because we are the best at what we do, we cover the entire supply chain, from road transport, to warehousing and distribution, to 3PL, courier market to e-commerce – we have expertise and can source talent in every area.

“

Technology, software and automation really empowers workers to be better at what they do and to give them the ability to spend more time doing the aspects of the jobs they enjoy.

”

In logistics, it can be very difficult to find the talent needed.

About the author Regan Brown is the Chief Executive of the Navital Group, a human capital solutions company comprised of Impex Personnel, Labourforce, Labour Health, and Navital Consulting.

As a third-generation supply chain logistician, Regan fell in love with the logistics industry from a young age. In 1997, his father founded Labourforce, a hire and recruitment company in order to address his transport business staffing shortages and staffing quality issues around selection, industry specialisation and knowledge of industry requirements.

21 years later, Regan has taken the Labourforce and Impex Personnel businesses forward to become leading supply chain and logistics staffing businesses, servicing the best in the industry with the best people – holding true to quality supply and ethical service standards that are industry leading. ■

36 | MHD NOVEMBER / DECEMBER 2019

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MHD MATERIALS HANDLING

The high ray racking at Asahi’s DC is 13 levels high.

MAJOR PRODUCTIVITY BOOST AT ASAHI SITE A new Asahi distribution centre is experiencing a 250 per cent productivity boost after introducing large-scale automation.

A

sahi Beverages is a leading beverage company that produces and distributes

alcoholic and non-alcoholic products in Australia and New Zealand.

With a rich and varied history, Asahi markets quality beverages, boasting a strong portfolio of established household brands and innovative, new-to-market products.

Asahi Beverages is a member of Asahi Group Holdings, one of Japan’s leading beverage companies, and includes of some of Australia and New Zealand’s most successful beverage businesses, such as Asahi Lifestyle Beverages (formerly known as Schweppes Australia), Asahi Premium Beverages, Independent Liquor and The Better Drinks Co. Today, Asahi Beverages employs more than 2,100 people across Australia and New Zealand.

38 | MHD NOVEMBER / DECEMBER 2019

MOVING ON FROM A MANUAL SYSTEM Asahi has a number of distribution centres (DCs) located across Australia.

Previously in Brisbane, Asahi operated across multiple locations and used manual forklifts for block stacking, which they found came with a lot of disadvantages and challenges.

Asahi recently consolidated their multiple Brisbane sites into one DC. With the development of the Heathwood DC, Asahi decided to upgrade to an automated warehouse solution, as they previously had a very labour-intensive system in place.

“Every truck that came in had to be unloaded by a forklift, then we had to receive the paperwork manually, check the pallets manually, move the pallets into the storage location and then do all that in reverse to pick them,” said Nathan Lucinsky, Heathwood DC Manager, Asahi.

In making the decision to consolidate its sites into one DC and upgrade to an automated solution, Asahi wanted to achieve a number of benefits, including reducing costs, improving efficiency and productivity, and being able to better meet the needs of its customers.

AUTOMATED STORAGE AND RETRIEVAL SYSTEM A key factor in Asahi’s decisionmaking process when looking for an automated warehouse solution that met the needs of their Heathwood DC was working with a company that understood the local market.

Asahi chose Dematic, as it has a demonstrated capability in delivering similar projects within Australia.

“As the new automation solution would be a first off implementation, it was critical to Asahi that they get it right,” said Dominic Figliano, Project

MHD MATERIALS HANDLING

Manager, Dematic. “During the initial design and concept development phase, Dematic considered a number of load bay and hold bay warehousing alternatives, but after assessing Asahi’s warehouse requirements, we knew that the best solution for them was the six-deep satellite Automated Storage and Retrieval System (ASRS).”

The high bay racking at Asahi Heathwood DC is 13 levels high, 34 bays deep, and the ASRS extends to six pallet positions deep on either side of the six cranes, which are accessed by satellite carts. In total there are approximately 31,500 pallet storage positions.

“The ASRS we built for Asahi uses Dematic’s newest and fastest crane, the 1200 H1. This is also the tallest satellite system we have built in Australia,” said Dominic.

The journey of a pallet commences at one of Asahi’s two production sites in Queensland. The product is then transported to the Heathwood DC by truck. When the truck arrives on site, the driver backs onto the skate dock and then triggers the automated device to align the trailer and commence the unloading process.

Skates extend into the back of a trailer, the airbags fire and lift those pallets off the floor of the trailer.

At this point, the skates then retract back onto the dock, the airbags deflate, chain conveyors then carry the pallets onto the main conveyor loop in warehouse.

The pallets then go through an automatic profile check where they are validated against the specification requirements of the ASRS system.

The conveyor loop delivers the pallet to the drop station where the ASRS system takes over.

The crane lifts and drives the pallet to the assigned put away location, and then a supercap cart takes over and it drives that palette out into the satellite and stores the pallet.

The ASRS is directed by Dematic WCS software. In the auto control room and also at workstations out in the plant, operators interact with WCS GUI system and they also have the benefit of a SCADA system, which they can use to monitor the real-time health of the system.

In addition to the ASRS, Dematic

also integrated third party equipment including the skate docks, a stretch wrapper machine, automated label applicators, and a pallet inverter.

THE SYSTEM ROLL-OUT Prior to construction of the Heathwood DC, Dematic was involved with the process of choosing a new site for the new DC to ensure the location would fit Asahi’s warehouse requirements, as well as the requirements of the new system Dematic had designed.

“Asahi’s DC was a greenfield site when we started working on the installation of the ASRS, which involved a number of challenges,” said Dominic. “Because the DC was still a building site there were builders, electricians, concreters and other contractors and workers on site that we needed to coordinate with and work in conjunction with. For example, we had to closely coordinate with the fire sprinkler installation to ensure sprinklers fit within the racking and met requirements.”

Close coordination and scheduling was also crucial to coordinate the various equipment being used by

all the different workers so that the project deadlines stayed on track.

Dematic had two crews on site, using up to two 80 tonne cranes, four boom lifts and two scissor lifts.

“We had up to 50 people on site and completed part of the installation during the night in order to ensure we maintained the schedule and delivered the project on time.”

Another key aspect of the system roll-out was the training that Dematic provided to the Asahi team once installation was completed.

“We provided superuser training to Asahi, which involved taking small groups and providing both theory and hands on training on how to use the new system. Those superusers were then able to go on to train other Asahi DC workers in the future,” said Dominic.

Due to the Heathwood DC having high bay racking, additional focus was put on safety in working with heights.

The rollout of the new system was successfully completed in May 2019.

BENEFITS OF NEW SYSTEM The standout benefits of the Dematic system are the high storage density

Asahi markets quality beverages, boasting a strong portfolio of household brands.

MHD NOVEMBER / DECEMBER 2019 | 39

MHD MATERIALS HANDLING

and the reduced footprint that the ASRS occupies, which allows Asahi to consolidate all their operations into a single site. This unlocks cost savings from reduced rental, less complexity in servicing its customers, less shuffling pallets which can lead to damages and errors, lowered transport costs, and faster truck turn times.

“An automated system such as this eliminates a lot of the manual handling of pallets,” said Dominic.

“This not only creates efficiencies and a high productivity boost of 250 per cent for the customer, but also increases safety for workers in not having as many forklifts.”

In a DC such as Asahi’s Heathwood site, each manual touch of a pallet represents a cost to the business and comes with the risk of human error.

Since automating its warehouse processes and only using manual process where it makes sense, most of Asahi’s pallets won’t be touched by a human until they get to the customer DC.

“When we think about the amount of touches that go on within a warehouse process, each touch is a cost to their business,” said David Rubie, Industry Manager F & B Manufacturing, Dematic. “So having that process automated and using manual labour work only when it most makes sense is a really great way of actually running a logistics enterprise.”

“When we were designing the facility for Asahi and looking at that the expected occupancy, Dematic calculated that we should be choosing an overall operation occupancy of about 89 per cent,” added David. “We’re pleased to see that Asahi are exceeding that now with a 90 to 92 per cent occupancy across the facility.”

SET UP FOR THE FUTURE Dematic has provided Asahi with ongoing support with onsite service technicians to ensure the success of the ASRS system at the Heathwood DC. “The resident Dematic technicians

have been critical to the success and the smooth running of our site,” said Nathan. “The relationship they have with our Asahi shift teams is fantastic.

Their communication and working towards understanding our operational constraints have been first rate.”

Having the Dematic support throughout the project has helped Asahi to build on their own knowledge of how automation works, especially ASRS. This has enabled them to get the most out of their new solution and ensure the Heathwood DC continues to run as efficiently as possible.

“One of the things that excites me about systems such as the ASRS is that it’s going to be safe for our DC workers,” added Nathan. “With the automated system, our warehouse operations run like clockwork, there is no longer the need for so many workers doing manual labour.”

“Implementing the ASRS has set us up for the future. And I certainly am proud of what we have achieved here together with Dematic.” ■

Due to the DC having high-bay racking, additonal focus was put on safety in working with heights.

40 | MHD NOVEMBER / DECEMBER 2019

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MHD SUPPLY CHAIN

PREDICTING THE UNPREDICTABLE Jhordan Gil, Senior Solutions Advisor - Supply Chain Execution at JDA Software discusses the opportunities that artificial intelligence and machine learning offer in delivering the upcoming peak period.

T

Jhordan Gil says organisations should start to explore artificial intelligence.

42 | MHD NOVEMBER / DECEMBER 2019

his year’s peak period will be the largest in Australia’s history.

Last year Australia Post delivered more than 40 million parcels in December, and this year, volumes are already greater than they were at the same time last year.

Over the coming peak, Australia Post expects to deliver up to 3.5 million parcels on its busiest day- this level of demand puts a lot of pressure on logistics providers to deliver.

For Jhordan Gil, Senior Solutions Advisor - Supply Chain Execution at JDA Software, organisations should start to explore artificial intelligence (AI) and machine learning (ML) to more accurately predict peaks in demand at a very localised level and to better prioritise warehouse tasks and position assets to deliver on those peaks.

According to Jhordan, the real benefits from AI and ML come when logistics providers or retailers have to cope with unpredictable peaks in demand.

“With the amount of data and technological advancements available now, we can begin to predict the previously unpredictable,” Jhordan says.

For example, if there is a football match close to a Coles or Woolworths, and the forecast calls for the first warm and sunny weekend in the last few weeks, an AI/ML based demand forecasting and autonomous fulfilment system may increase stock at that branch and correspondingly schedule additional staff at that particular time.

It’s these kinds of spikes in localised demand at scale that were difficult to prepare for without advanced

technology about historical behaviour and patterns.

A further advantage of using technology is that it gets better over time, Jhordan says. “It starts to recognise a good outcome or a bad outcome, and adapt recommendations accordingly.”

A crucial aspect of coping with spikes in demands is having the right skills, in the right place at the right time, Jhordan says. “When you identify a peak period, it has a huge effect on your workforce. So, it’s advantageous to be able to tap into a diverse range of employees, understanding which functions of your operations will be most affected, and select the right profile of employee you need at any one time,” Jhordan says.

With regards to logistics providers, one piece of advice that Jhordan offers is to improve collaboration. “For logistics organisations, nearly everything is out of their control. We recommend that providers work with their clients to improve collaboration and traceability. The idea is to ensure that everyone sees a single source of truth,” he says.

Whether it be a container in the middle of the ocean, a truck on the road, or the last-mile delivery van, it pays to have accurate ETA data constantly available to all parties involved in the supply chain. Further, AI/ML can be leveraged to go from Estimated Time of Arrival to AI/ML-based Predicted Times of Arrival, allowing organisations to better adapt depending on if a delivery is running late or early.

Within warehouse environments, Jhordan encourages following the principle of having the right task at the right time rather than simply 100 per cent utilization.

Delivering on time in full (OTIF) becomes particularly challenging during peak periods, and AI/ML can be leveraged to intelligently assign warehouse work to the right employee at the right time. For instance, if a set of urgent orders drops, how do you ensure you can redeploy staff so they can complete the urgent orders without affecting service level of other orders? Live accurate data enables you to prioritise your assets and execute on the unpredictable accordingly,” he says.

JDA’s Luminate platform embraces SaaS-native architecture, the Internet of Things, and advanced analytics and cross-platform integration with AI and ML to drive value for customers’ supply chains.

JDA offers a control tower which senses unexpected events across the supply chain and identifies the potential impact of disruptions. Analysing hundreds of potential variables to find the probabilities of different outcomes and each outcome can then be associated with a calculated business impact and risk.

“These technologies aren’t just applicable to forecasting unexpected peaks, they also really come into play once you’ve hit that peak period and you need to work out how to deliver,” Jhordan says.

For Jhordan, it’s about having that central source of truth and having the smart software to recognise what needs to be done when unexpected changes occur. ■

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MHD TECHNOLOGY

Bridgestone was investing heavily in the digital space and has come up with some truly innovative features.

WORLD-CLASS MOBILITY SOLUTIONS TomTom Telematics, now Webfleet Solutions, was purchased earlier this year by Bridgestone. MHD sits down with Christopher Chisman-Duffy, Director of Sales for Australia and New Zealand to find out what’s in store for the future of the business.

T

echnology is driving efficiencies and productivity levels across many organisations and sectors.

According to the Logistics, Supply

Chain and Transportation 2023 report

by Forbes Insights, nearly two-thirds of logistics executives say they expect technology to deliver significant

Webfleet Solutions provides digital fleet products with a product range covering connected vehicles for safer driving.

44 | MHD NOVEMBER / DECEMBER 2019

productivity gains.

Of those surveyed, 53 percent of respondents said they expect technology to enhance the whole of the customer experience, with solutions like artificial intelligence, telematics and machine learning noted as major contributors.

According to Christopher ChismanDuffy, Director of Sales for Australia and New Zealand at WebFleet Solutions, the motivation behind Bridgestone’s acquisition of the leading telematics company was to keep abreast with digital innovation taking place across the entire transport and logistics arena.

“The digitalisation of our industry is at the forefront of Bridgestone’s plans for growth, and the acquisition of our organisation is a crucial part of

MHD TECHNOLOGY

that growth,” Christopher says.

Webfleet Solutions is a leading provider of digital fleet products with a product range covering connected vehicles for safer driving, improving productivity and optimising uptime for personal and commercial mobility.

“What started as a tracking business now delivers so much more value through technology,” Christopher says.

At the beginning of October, what was TomTom Telematics became Webfleet Solutions, and this change of name has a significant history, Chris says.

“Twenty years ago, we launched our Webfleet fleet management solution from our original office in Leipzig, Germany. Thomas Schmidt, the current CEO of Webfleet Solutions headed up this business and created a leading organisation in using cloud and internet technologies to help fleets and companies with commercial trucks, vans and cars. So, we are going back to a brand and reputation we built a very long time ago,” Chris says.

According to Chris, Bridgestone was investing heavily in the digital space and has come up with some truly innovative features. “Bridgestone has been developing their own mobility platform that features live tyre pressure data, presenting a number of safety benefits. They wanted to create an integrated solution, an allencompassing world-class mobility offering. Instead of building that capability inhouse, which could have taken a number of years. They decided to purchase TomTom Telematics – immediately bringing them up to speed on the leading technology in mobility solutions,” he says.

Creating a more extensive mobility offering will give Bridgestone and Webfleet Solutions customers information that goes much further than live tyre pressure data. “Now we can reveal where the vehicle is at any one time, what speed it is travelling at, where a safe place to stop would be or where the nearest vehicle that can help is located,” Chris says.

This also helps organisations who operate on a service level agreement.

“Take a food delivery for example. We can provide live data on the temperature of the produce. If this drops down, then the driver can do something about it before they arrive at the destination and the product is ruined,” Chris says.

Combining a digital fleet business with Bridgestone’s tyre expertise and global service network creates an opportunity that accelerates the company’s efforts to become a key partner in the Mobility as a Service (MaaS) landscape with leading tyre products and services, according to Chris.

“Bridgestone gives us the perfect opportunity to provide the whole solution to our commercial vehicle customers. We can provide a more diverse offering and being part of such a huge corporation gives us the an even bigger reach to develop more innovative solutions,” Chris says.

Webfleet Solutions provide services to a broad spectrum of customers, from plumbers with maybe five to ten vans to bus companies with more than 12,000 vehicles. Serving more than 50,000 customers with vehicles driving in 100 countries and 1.2 million mobility and fleet management subscriptions. ■

Bridgestone can now provide customers with data that goes beyond live tyre pressure data.

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MHD PRODUCT SHOWCASE

WHY MBI PREFERS TRELLEBORG TYRES Vincent Westerdijk, Vehicle Technician at MBI says when it comes to tough work, it’s worth investing in premium tyres.

Q

uality is paramount at MBI. The business makes use of the highest-quality materials and production techniques to make the difference. The production processes are carefully executed by experienced specialists. The unmistakable link connecting it all is logistics. This is why the company’s forklifts are increasingly equipped with Trelleborg Elite XP tyres.

Vincent Westerdijk, who is responsible for service and maintenance work on the forklifts, explains why.

In 1945, A.J. van der Meijden founded the company MBI De Steenmeesters. After the war, the need for stone and building materials was especially great. The range of products mainly consisted of concrete panels and slabs, but also of concrete blocks and masonry stones. More than seventy years later, the company has grown considerably and currently counts four production- and sales locations in Aalst, Kampen, NieuwLekkerland and Veghel and two sales offices abroad in Wuppertal (Germany) and Kortrijk (Belgium). MBI is still owned by the van der Meijden family.

“We first contacted Trelleborg in 2011 because we wanted to equip our forklifts with tyres of this kind. We had just purchased four new forklifts with tyres of another brand of tyres and the drivers were really not happy with them,” Vincent says.

According to the drivers at MBI, the forklifts ‘danced’ too much in combination with the brick clamp.

There were also problems in terms of wear and tear.

MBI decided, in consultation with 46 | MHD NOVEMBER / DECEMBER 2019

MBI has been replacing its tyres with Trelleborg tyres.

their tyre supplier, Profile Tyrecenter Heuver, in order to equip two identical forklifts with different tyres: the one with conventional tyres and the other with Trelleborg Elite XP. “We then tested them for two years with and without loads, with and without brick clamps, in short, in all possible circumstances, so that we could really judge the difference. In 2013 it was finally clear, the Trelleborg Elite XPs were better,” Vincent says.

Since then MBI has been gradually replacing the other brands. The machine pool includes 35 forklifts.

The diesel models are making way for electrically powered models, in which Van Dijk Forklifts from Genemuiden have played an important role for years.

THE IMPORTANT ADVANTAGES OF THE TRELLEBORG ELITE XP According to Vincent, the forklifts have tough work to do. “In our business, these machines run in two or three shifts and that means 16 to 24 hours

a day. For us it is especially important that the driver feel at ease. Since the Trelleborg Elite XP tyres absorb most of the vibrations, our drivers are no longer plagued with back pain.”

Furthermore, Vincent says he definitely noticed the difference in the workplace. “Before, we had to replace the bearings in the lifting frame regularly. Now this hardly ever happens, which pays in the form of savings that are anything but negligible.

Over the years I have also learned that buying on the cheap is not always an advantage in the long run.”

On the diesel forklifts the front tyres have an operational life of around 4,000 hours, while the rear tyres, which also steer, have to be replaced after about 2,000 hours. A longer operational life is in part possible because of the perfect contact surface, which means that that tyres wear down more evenly, but also thanks to the CDM technology, thanks to which the tyres directly “repair” themselves after a deformation and resume their original form.

“Finally, I want to add that the we are very satisfied with the Pitstop Line wear-indicator. Before tyres were often replaced too quickly because they looked worn out. But thanks to the Pit Stop Line we can visually check when the tyres are really worn. When the colour strip becomes visible, you can continue working with the forklift for about another 100 hours. This is handy for the driver and organising work in the workplace but it also adds value to the purchase price for each running hour. So, it’s a real win-win situation,” Vincent says.

THE TRELLEBORG ELITE XP IN A NUTSHELL •P remium tyre for internal transport in difficult conditions • Pit Stop Line wear-indicator for better planning • Four-point contact surface to guarantee a longer operational life • Numerous sizes available. ■

MHD Supply Chain

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MHD PRODUCT SHOWCASE

DEMAND GENUINE DEXION David Maycock, Head of Industrial and Shared Services at Dexion says customers need to be aware of imitations when it comes to the safety of people and products.

F

ounded on a tradition of excellence and innovation, Dexion is a global storage and logistics provider operating throughout Australia, New Zealand and Asia. With more than 80 years’ global experience, we are constantly seeking out new ways to solve the materials handling challenges for a diverse range of customers from the office through to the warehouse.

Dexion has come a long way from the very first slotted angle shelving system.

48 | MHD NOVEMBER / DECEMBER 2019

SMARTER PRODUCTS We have come a long way from the very first slotted angle shelving system invented by our founder Demetrius Comino in 1937. However, our core focus remains the same – to provide innovative solutions for our customers.

The backbone of our operation – Dexion’s extensive range of industrial racking and storage solutions – are designed to maximise space and

productivity. Alongside this, our integrated systems combine the latest innovations in automation and software – bringing together enterprise systems and materials handling equipment for real time warehouse management and control.

We also provide a complete commercial storage solution for offices and hospitals through to libraries and museums. Our range of commercial

MHD PRODUCT SHOWCASE

Every Dexion solution is designed, engineered and tested in Australia.

shelving products including Compactus, Cabinets and Mobile Art Racks allow you to maximise your valuable floor space and safely store your items.

SMARTER ORGANISATION FOR SMART ORGANISATIONS Leading companies demand the best, which is why genuine Dexion solutions are in such high demand. Through our engineering innovation, we are a trusted force for the globe’s most recognisable brands.

We have developed innovative and sophisticated warehouse automation solutions for a diverse range of customers, from Hyundai Mobis and Kimberley Clark to Sistema and Fonterra, across a whole range of industries including 3PL, Automotive, FMCG, e-commerce and retail to name a few.

Our long history in this industry underpins today’s commitment to automated technologies and smart innovations throughout the supply chain. It’s no accident that many of the world’s largest organisations trust us with some of their most important assets. We don’t just add value – we add smarter thinking that flows through to all areas of their business.

GENUINE QUALITY THAT’S BUILT TO LAST Every Dexion solution is designed, engineered and tested in Australia by our team of highly experienced

structural engineers to exceed expectations and meet Australian and international standards AS4084:2012 and EN15512:2009. Furthermore, every component is independently tested to verify its structural integrity and code compliance by University of Technology Sydney (UTS).

Beware of imitations – installing anything other than genuine Dexion in Australia and Asia Pacific will compromise the safety of your people and products, putting your company’s operation at risk.

Our world-class range of industrial storage products are designed to last a lifetime – performing day in, day out. That’s why we don’t simply offer a standard 12-month warranty – we offer our customers the Dexion Lifetime Product Warranty. This covers structural failure and defects in materials and workmanship in specified new products manufactured by Dexion, validated by our thorough annual inspection.

DON’T TAKE THE RISK There are many companies selling ‘Dexion compatible’ pallet racking, claiming their upright and beam designs can fit into the Dexion Speedlock and Keylock pallet racking ranges. They may fit into the connection slots, but they are made with unknown materials, finishes and have never been tested to work

together. This can cause a massive risk of structural failure to the pallet racking structure, which can have catastrophic consequences for your business leading to possible serious injury or death of your staff.

In addition, mixing non-Dexion products with existing Dexion structures voids the lifetime warranty of your product.

It is simply not worth the risk to your company.

THE SMARTER CHOICE For more than 80 years, Dexion has led the way in providing new and innovative solutions for our clients’ storage and logistics requirements.

Our people and products continue to transform the landscape in real-time distribution, materials handling and warehousing, through engineering excellence, state-of-the-art design, rigorous product testing and after sales support.

Dexion’s smarter thinking streamlines your operation, delivering integrated solutions that protect your investment and provide valuable peace of mind. If you demand the best for your business, demand genuine Dexion.

About the author David Maycock is Head of Industrial and Shared Services, Australia at Dexion Asia Pacific. ■ MHD NOVEMBER / DECEMBER 2019 | 49

MHD SUPPLY CHAIN

HOW TO SOLVE THE OMNICHANNEL CHALLENGE Marie Varrasso is a supply chain expert with 25 years experience delivering large-scale supply chain projects across Australia. Here she shares her knowledge on how to create an omnichannel ready warehouse.

A

ccording to Marie, the consumer rules the world. “The consumer is the ultimate disruptor and when it comes to supply chain operations we absolutely have to embrace them,” she says.

The true definition of omnichannel is when a customer can buy from anywhere, whether that be in a store, on a laptop or a PC, or from their phones and tablets. They also want to pick the product up from anywhere, whether that be a store, at their place of work, at home, or sent to a friend and they also want to be able to return it at any of these locations.

“It’s consumers that are driving the desire for a seamless, frictionless experience. But other retailers still don’t offer a full every-channel service.

It’s still very much disconnected. To be truly omnichannel the consumer is recognised whatever device they use at whatever point in the purchase journey they are in,” Marie says.

WHAT DOES THIS MEAN FOR THE TRADITIONAL WAREHOUSE MODEL? The changing needs and demands of the consumer are having a huge impact on the traditional warehouse model. “There is a very real need to innovate, evolve and change to become an omnichannel warehouse,” Marie says.

According to Marie, we need to look at what we know about the market today to be able to adapt.

“We know that facilities and labour costs are increasing. We also know that consumers are seeking a faster and more convenient service. On top of that, the nature of e-commerce is putting a lot of pressure on the 50 | MHD NOVEMBER / DECEMBER 2019

The Toll facility in Melbourne’s Altona North was the first-ever facility in Australia to achieve whole-of-building carbon neutral certification. traditional warehouse. Picking a pallet of goods is very different to picking lots of individual items,” she says.

Along with these challenges, Marie says there is also an increased need for technology such as automated facilities, predictive analytics and artificial intelligence that need to come into the mix.

“Many advances in technology don’t cost the earth to implement, and you shouldn’t be scared to utilise these,” she says.

THE FRAMEWORK According to Marie, the consumer should be at the centre of any plan, and surrounding that is a number of different principles and values.

Every innovation should start and end with the consumer. “Anyone working in supply chain should

spend time in the industry they serve. Supply Chain teams should be encouraged to spend time out in retail and in industry. It is important they understand the value they bring to the organisation and ultimately to consumers, and in order to do that they need to get out of the distribution centre and into retail,” she says.

Empowering people is also high on Marie’s agenda. “Everyone in supply chain should know how their role fits within the larger organisation and how their contribution impacts the bottom line,” she says.

Another key factor to success is to ensure that organisations innovate every day, Marie says. “You won’t get ahead if you don’t practice continuous improvement. It is a basic principle and it needs to permeate across your entire operation,” Marie says.

MHD SUPPLY CHAIN

“

Everyone in supply chain should know how their role fits within the larger organisation and how their contribution impacts the bottom line.

”

Small daily changes can have a large impact to an organisation’s bottom line. Marie uses the example of the Toll Altona North warehouse, where the 20-year old facility was transformed into Australia’s first carbon neutral warehouse.

During this time Marie was Director of Supply Chain and Logistics at Nike Pacific.

“The distribution centre was transformed through lean principles and continuous improvement and throughput more than trebled across the last 12 years,” she says.

One area that organisations should not overlook is identifying opportunities to collaborate, Marie says. “Find ways to work together and establish wins for all sides of the operation. Sharing assets will become more and more frequent, certainly in the last mile delivery arena,” she says.

conveyor system which is powered by 145 individual electric motors, and the retrofitting of 1,300 light fixtures with high efficiency LEDs. This has led to a halving of the site’s total electricity consumption, exceeding the greenhouse reductions required by NCOS. “We offset the remaining greenhouse emissions generated by the building by investing in forest conservation projects in Tasmania as well as in an energy recovery waste water treatment plant in Thailand,” Marie says.

For Marie, success in any supply chain is about knowing your consumer, and thereafter applying a holistic approach to future proofing your warehouse. Technology alone is not the answer, this needs to be balanced with investment in people first and foremost, then all else begins to fall into place.

STEPS TO SUCCESS

About Marie Varrasso Marie has 25 years’ experience in supply chain and logistics. She has worked for globally recognised organisations including as Director Supply Chain & Logistics for Nike Pacific and Director of Distribution at Oxford University Press.

With a belief in optimizing the supply chain by enhancing the utilisation of all inventory, increasing customer service levels and increasing company business values, Marie has embedded a philosophy of continuous improvement within the full supply chain.

Her knowledge areas include Supply Chain Innovation, Logistics & Transportation, Performance Management, S&OP and Planning. ■

The Altona North Toll facility was built more than 20 years ago, and it was a big task to adapt the site to be carbon neutral in 2018.

According to Marie, collaboration between landlord, tenant and client enabled the facility to achieve such a result. “Lean principles, a culture of doing what is right, and collaboration enabled the teams to innovate along the way,” she says.

The facility in Melbourne’s Altona North was the first-ever facility in Australia to achieve a whole-of-building carbon neutral certification under the National Carbon Offset Standard (NCOS).

The site’s energy efficiency program featured upgrades to a 2.5 kilometre long

Marie says the true definition of omnichannel is when a customer can buy from anywhere, whether that be in a store, on a laptop or PC or on a mobile or tablet.

MHD NOVEMBER / DECEMBER 2019 | 51

MHD SUPPLY CHAIN

THE BENEFITS OF AUTOMATION IN THE DISTRIBUTION CENTRE Brad Welsman, Managing Director at SSI SCHAEFER Australia says the business case for automation should not only consider the hard numbers but also the secondary benefits of a safer and more ergonomic environment.

E

xperience has shown that automated storage and order picking systems can deliver substantial operating savings in the DC while at the same time improving

Automated storage reduces space requirements and increases safety.

the quality of order fulfilment.

What benefits exactly can be expected from automated systems within the distribution centre and how are such systems justified?

Summary of major benefits of automated storage and order picking systems • Reduced labour costs • Reduced dependency on labour availability • Improved space efficiency • Improved ergonomics and safety • More resilient to changing order profiles • Extended facility Life • Higher quality fulfilment • Reduced labour costs Automated storage and order picking systems reduce the need for labour and wheeled machinery in the DC. In automated goods-to-person order picking systems for example, the right goods are brought automatically to the person at the right time, walking is virtually eliminated and productivity when picking slower moving SKUs in particular can be ten times higher than with traditional zone picking or walk pick-to-pallet approaches.

• Reduced dependency on labour availability An increasing problem in distribution today is finding enough people to carry out the often-laborious task of picking and packing. Moreover, where labour resources are scarce, operations often have to contend

52 | MHD NOVEMBER / DECEMBER 2019

with a high turnover of staff which in turn leads to soaring training and administration costs and undermines quality. Higher productivity automated systems reduce the number of operators required for storage, picking and packing and provide a much higher degree of ergonomics which helps retain staff and maintain quality.

• Improved space efficiency By making maximum use of headroom and minimising aisle widths, automated storage systems for pallets, tote bins and cartons reduce footprint requirements for stock storage and with it land and building costs. Additionally, automated Goods-to-Person picking systems do not have a traditional pick face but rather draw SKUs directly from an automated buffer system which is significantly more space efficient.

• Improved ergonomics and safety With an increasing focus on OH&S and an ageing workforce, operations are coming under more pressure to provide a safe and ergonomic environment for operators. Safety and ergonomics are becoming increasingly important drivers for automation. Automated storage systems reduce the need for forklift trucks and eliminate the need to have pallet movements interleaved with other tasks such as order picking. Automated Goods-toPerson palletising stations provide for sliding rather than lifting of cases

MHD SUPPLY CHAIN

and eliminate walking. Additionally, ergonomic pick from tote stations for small and split case items minimise bending and twisting, reducing injuries, complaints and lost time.

• More resilient to changing order profiles A general trend towards more SKUs, combined with increasing pressure to reduce store stock and optimise store shelf space, has dictated the need for more frequent smaller deliveries. In manual picking systems, more SKUs and smaller orders mean greater walking distances which reduce productivity. In contrast, automated Goods-to-Person pick stations are equally productive for small orders as they are for large orders and the productivity is independent of the number of SKUs.

existing space and automated picking systems do not have a pick face whose length increases with the number of SKUs. These things, combined with an increased resilience to changing order profiles, all contribute to extending the life of a facility. The opportunity to “sweat the existing assets” and delay a move to a new or different facility can often translate into significant savings.

• Higher quality fulfilment In automated picking systems, there is a greater degree of flexibility with respect to how and when an order is assembled. So for example the ability of Goods-to-Person picking systems to build pallets in accordance with differing store requirements with equal productivity can translate into significant savings. Moreover, automated Goods-to-Person picking systems typically allow for any order to be picked at any time, improving response times and increasing fulfilment consistency and quality, all of which leads to higher customer satisfaction and ultimately increased sales.

IS AUTOMATION RIGHT FOR YOUR BUSINESS? CAN IT BE JUSTIFIED?

Goods-to-Person Pick to Tote station.

• Extended facility life Automated systems deliver increased productivity and therefore a higher capacity for meeting future throughput requirements. Automated storage allows for better use of

In general, the justification or business case for an automated system will be based on comparing the automated option to one or more alternatives.

The alternative may be to just continue as is, however, where an operation has outgrown its current facility, the comparison may be between moving now to a new manual site versus automating the existing site to prolong its life.

Where an operation has to move to a new site in any case, the comparison may be between building a new manual site versus building a new automated site.

An automated system will require significantly more initial investment than a manual system however potential associated savings in building and land costs need to be taken into account. Automated systems also require much higher maintenance costs including preventative maintenance, spare

parts and breakdown support which together can run to 510 per cent of the initial investment per annum.

Where do the savings come from?

• Reduced labour costs, including recruitment and training costs • Savings in land and building costs • Improved capacity to meet future demands • Fewer lost time injuries • Higher staff retention • Improved customer service The higher productivity associated with automated system leads to lower labour costs and this is a key driver in determining the feasibility of the higher investment. The savings in labour costs are very much dependent on the labour rate and the throughput of the system. The case for automation is much stronger for operations that run three shifts in a high labour cost area. In considering a labour rate for the business case evaluation, all associated costs including overtime payments and management, recruitment and training costs should be included. These can be substantial for large manual sites, especially where there is a scarcity of labour and/or a high turnover of staff.

In most cases, automated systems require a much smaller footprint than manual systems. This may translate into direct cost savings from an immediate reduction in space usage or alternatively, it may allow a building expansion or a transfer to a new facility to be deferred. These savings should also be calculated and factored into the business case.

Finally, the business case for an automated system should consider not only the “hard” numbers such as labour and building cost savings but also the “second order” benefits of a safer, more ergonomic environment with improved delivery flexibility and response times. Although sometimes difficult to quantify, these benefits include less lost time through injury, increased staff retention rates and higher customer satisfaction which leads to increased sales.

About the author Brad Welsman is Managing Director of SSI SCHAEFER Australia. ■ MHD NOVEMBER / DECEMBER 2019 | 53

MHD SUPPLY CHAIN

ACCELERATING GROWTH

Cohesio will join the software business unit of logistics giant Körber.

After the recent acquisition of Cohesio Group, Nishan Wijemanne, CEO at the company, shares wih MHD what the industry can expect now that the business has joined the larger Körber family.

K

örber AG is the holding company of an international technology group with around 10,000 employees worldwide. Headquartered in Germany, the group has a global presence with more than 100 locations. In 2018, the group generated €2.5 billion in sales.

Under the Körber logistics brand, the company has product solutions, systems integration and software businesses. Cohesio will join the software business unit of the organisation and will join other 54 | MHD NOVEMBER / DECEMBER 2019

leading organisations including Aberle, Cirrus Logistics, DM Logic, HighJump, Inconso and Voiteq.

“This is a really exciting time for us. This gives us the opportunity to take Cohesio to the next level. We’ve had significant growth over the last five years but this investment from Körber will allow us to accelerate that growth and develop our offering even more,” Nishan Wijemanne, CEO of Cohesio Group says.

According to Nishan, this isn’t the first time that Cohesio has been

approached to partner with a larger organisation – but Körber is the first company that he felt shared the same values and culture as Cohesio.

“Culturally the alignment was really strong right from the beginning.

Where they are heading, the team, their vision and their market strategy– we really felt like this was such a good fit for us,” Nishan says.

Körber has been tracking Cohesio for quite some time, according to Chad Collins, Co-CEO at Körber Logistics Software Business Unit. Cohesio’s rapid growth and prominent market position as one of the leaders in voice solutions within the Asia Pacific region fits well for Körber’s global voice strategy and growth ambitions.

“Cohesio’s market-leading position

MHD SUPPLY CHAIN

in the deployment of autonomous mobile robotics (AMR) solutions in the region makes them even more attractive, showing their innovative approach to providing value-adding solutions to their rapidly expanding customer base. With its broad, technology-orientated product and service portfolio, the Cohesio team is an ideal fit for Körber Logistics Systems,” Chad says.

BUSINESS AS USUAL Though going through an acquisition can often create a feeling of uncertainty or change, for Nishan and the team at Cohesio it’s business as usual. “In some ways it’s a little emotional, somewhat a case of our baby’s all grown up, but at the same time many aspects of our day to day operations will be business as usual. Körber gives us the tools we need to continue to grow at the rate we have been,” he says.

To meet this growth, Cohesio is expanding its team here in Australia and in the more general Asia Pacific region.

With recruitment plans in Singapore, Philippines, Sydney and Melbourne.

For Nishan, Körber’s broad portfolio offers a number of different opportunities, with Cohesio Group customers now able to benefit from the organisations rich

“

This gives us the opportunity to take Cohesio to the next level. We’ve had significant growth over the last five years but this investment from Körber will allow us to accelerate that growth and develop our offering even more.

”

portfolio of supply chain solutions.

It also creates a network for Cohesio to learn and share experiences across different verticals, something that Nishan has seen start to take place already. “The level engagement after the announcement was very high. We’ve having a whole bunch of new conversations with similar clients who are in the same verticals that we have worked in before,” he says.

One area that Körber was particularly excited about with this acquisition is the work that Cohesio is doing in the AMR space as it would add to their growing and extensive automation solution-set. “AMR is very attractive right now to Körber, and with Cohesio they really saw a pioneer that could help them move forward in this space,” Nishan says.

Körber is approaching the AMR solution space as a market leader, having recently appointed John Santagate as Vice President of Robotics in USA. John is building a global strategy for AMR. “Körber is developing its own vision of how they want to move this tech going forward and we are a major part of that,” Nishan says.

Cohesio is an experienced player in this space, with a number of major robotic deployment projects under their

Cohesio is an experienced player in the robotics space, with a number of major deplotments across Australia.

MHD NOVEMBER / DECEMBER 2019 | 55

MHD SUPPLY CHAIN

belt. “Deploying robots are easy.

However, implementing them into a solution environment is critical.

By having thorough understanding of DC workflows, the operational opportunities, the local support and infrastructure, Cohesio brings a powerful proposition for those looking for AMR solutions in this region,” Nishan says.

EARLY ADOPTERS In Nishan’s experience, some organisations are apprehensive about implementing AMR. “There is a lot of interest for sure, but at the same time there is a bit of apprehension. Some people are a bit reluctant to take that leap of faith,” he says.

What Nishan has found is that many businesses think that AMR is built largely for e-commerce, so if they’re not operating in that area they think it isn’t the right solution for them. “I beg to differ, we like to challenge the norm and we have found significant productivity and efficiency gains across a number of different sectors,” he says.

This is evident in the Galipo Foods deployment of voice solutions and automation. When Galipo first approached Cohesio, the business was turning over $45 million annually.

Seven years later after using Cohesiodesigned warehouse execution software, voice-activated solutions and automation the organisation now makes $110 million every year.

“This is a great example for us.

We knew we could prove the case and now we are rolling out phase two as the business is realising significant benefits. They can service their clients quicker, get trucks out the door quicker and make their deliveries quicker. We were able to modify a traditional workflow with our solutions. To apply a pick to pallet model with AMR – this had never been done before,” Nishan says.

There is a lack of knowledge with AMR because it is so fresh and new, people think it’s about moving a rack with a robot and yes it can be as simple as that, Nishan says, but it’s the level of throughput that the tech offers that is so impressive.

Cohesio has the ability to design a dynamic AMR solution with desired 56 | MHD NOVEMBER / DECEMBER 2019

Nishan Wijemanne, CEO at Cohesio Group.

flexibility, scalability, growth demands and cost reduction due to non-existence of fixed assets in DCs factored in right from the outset.

While AMR presents a number of significant benefits, Cohesio works closely with clients to work out if it is the right solution. “We want to understand where the business is heading and work out if AMR is the right solution. It’s not fit for everybody, we often have to tell an organisation that they are not ready yet but they could revisit the idea in six months’ time and in the mean time they could change certain processes to improve productivity,” Nishan says.

Nishan says that for Cohesio, it’s more about understanding the journey the client is on rather than putting an order in for how many robots they or racks they think they may need.

BENEFITS OF A LOCAL PARTNER One of Cohesio’s strengths is that they have a local presence in the Asia Pacific region. This was attractive to Körber as they were keen to expand their presence in this market and claim a global market leadership approach.

“For Körber it was about entering APAC with a strong player, rather than trying to create this kind of footprint themselves,” Nishan says.

When implementing new technology and automation one area that should not be overlooked is change management, an area that Cohesio has a lot of experience in.

“We’re very involved in every step with our clients. We start off having a look through their DC, understanding the level of sophistication they have currently,” Nishan says.

“Putting in new tech requires a lot of change management, we do a lot of that with our process. We advise our clients to involve employees from the outset. To make sure they are engaged from day one,” Nishan says.

Cohesio also tries to put the onus back on the operators and ensure that they have super users, so that they are able to have support on hand.

“We’re not about selling a solution and then offering a hefty support contract. That’s not how we work.

We’ll be there at 3am if we need to and we want to empower our clients so that they have a high understanding of the tech as they move through the sophistication levels,” Nishan says.

A SHARED VISION Looking to the future both Körber and Cohesio have the shared goal of innovation. “We’re doing some really exciting things at the moment and so is Körber. We’re looking at realtime analysis traffic in the warehouse for example. The possibility of smart watches from a health and safety perspective. There’s so much scope for us,” Nishan says.

“Combining the capabilities of Körber Logistics Systems and Cohesio enables companies on a global scale to capitalise on all voice and AMR technologies have to offer, and in turn, benefit from an automated, connected supply chain of the future,” Chad says.

For Cohesio their market approach and strategy will be unchanged.

They will continue to innovate and challenge the status quo within logistics and distribution. “Körber has been very clear that we are not to slow down, they want us to continue to run our own race but we now have the financial stability and support to take Cohesio to the next level,” Nishan says. ■

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MHD MATERIALS HANDLING

FORKLIFTS FOR THE FUTURE Crown Equipment has worked with Drakes Supermarkets for more than 20 years and has delivered an Australianfirst for the supermarket chain in providing a lithium-ion powered forklift fleet.

D

Drakes wanted to work with a forklift provider they were familiar with.

58 | MHD NOVEMBER / DECEMBER 2019

rakes Supermarkets recently opened a new $125 million distribution centre (DC) in Adelaide’s Edinburgh North. A major focus for the company was to ensure that the site featured the latest

MHD MATERIALS HANDLING

Drakes Supermarkets said.

Drakes took more than 50 Crown Equipment trucks to start with, including 30 pallet trucks.

technology and innovation.

Drakes has worked with Crown Equipment for more than 20 years, so it made sense that the supermarket chain work with a forklift provider that they were familiar with for this new site.

According to Rod Chapman, General Manager of Sales at Crown Equipment, Drakes was committed to ensuring the DC featured the most advanced and sustainable materials handling solutions.

“For Drakes, lithium-ion trucks were an absolute necessity. They were a key part of the company’s vision and they had done a lot of research into what they wanted,” Rod says.

Drakes took on over 50 Crown lift trucks to start with; 30 pallet trucks, 11 high reach trucks, five freezer

condition reach trucks, one electric counter-balance forklifts and five loading machines – all of which operate on lithium-ion batteries.

Crown worked exclusively with FastCharge Australia to source all batteries and chargers.

The site is one of the most advanced independent distribution and logistics centres in Australia and the fully lithium-ion fleet is an Australia-first for Crown Equipment.

“The lithium-ion powered forklifts from Crown Equipment will allow us to operate 24 hours a day, seven days a week for 10 years using just one battery. For every full cycle on each truck we will reduce our costs by five dollars – this presents an enormous cost-saving for us over time,” Roger Drake, Managing Director,

The new DC will house 23,000 separate lines of products and according to Rod, the lithium-ion trucks provide the supermarket chain with a number of advantages.

“While the lithium-ion lift truck batteries are more expensive there are many benefits to be realised. The batteries will charge significantly faster, last longer and have no requirements for watering,” Rod says.

Without a lithium solution, Drakes would have required a large battery room to store and charge the spare forklift batteries required to meet the demands of the DC. But now there are charging stations fitted throughout the DC. “When you are running a minimum of two shifts, six days a week, you need to be able to have trucks that can keep up with that kind of throughput – and our lithium-ion solution provides this,” Rod says.

Drakes is also maximising the ‘opportunity charging’ capabilities of lithium-ion through the use of charging stations throughout the site.

“The trucks can be charged during operator breaks without affecting battery life. So Drakes has installed chargers throughout the site and close to operation so that they can be charged throughout a shift. It’s a fantastic fast-charging solution and the ports throughout the site can charge any of the batteries,” Rod explains.

The design, planning and approval of the facility took approximately six months, with the build, fit out and testing taking a further 11 months for completion. The launch marks the split of Drakes Supermarkets from the Metcash Group.

Drakes will also be employing a further 140 full-time staff and will provide advanced training to all employees, adding to their over 6,000 current staffing levels.

Drakes Supermarkets is a family owned and operated grocery retailer of 37 stores across South Australia. Over the last 45 years, they have become Australia’s largest independent grocery group with stores also in Queensland.

The organisation employs more than 6,000 people and remains committed to supporting local suppliers, farmers and the local community. ■ MHD NOVEMBER / DECEMBER 2019 | 59

MHD SUPPLY CHAIN

LESSONS FROM AN E-COMMERCE LEADER Maggie Zhou, Managing Director at Alibaba Group Australia and New Zealand reveals her tips for Australian organisations looking to improve their e-commerce offering at home and overseas.

W

hat advice would you give to organisations who are looking to improve their e-commerce offering?

Maggie: One of the most effective ways of improving an organisations e-commerce product offering is to ensure the brand is continuously keeping up with market trends and consumer demands.

In China, consumers are constantly wanting to discover the latest and greatest product developments and e-commerce can provide deep consumer insights to aid the development of new products.

The Tmall Innovation Centre helps international brands compete in the Chinese marketplace by leveraging Alibaba’s deep cultural understanding and vast consumer insights which in turn helps brands design products suited to local tastes.

A great example is chocolate bar company Mars who have been in the Chinese marketplace for years, however with the help of Alibaba’s product development service, they co-designed the new Mala (spicy Sichuan pepper) flavour which proved to be popular with Chinese consumers.

What can we learn in Australia from the Chinese approach to e-commerce?

Maggie: Alibaba was founded in 1999 with the simple mission ‘to make it easy to do business anywhere’. Since then, millions of small and medium businesses have traded via our various e-commerce marketplaces creating over 40 million direct and indirect job opportunities in China.

In China, perhaps in contrast to Australia, e-commerce is a far more social experience for the consumer.

Our marketplace Taobao, for example, has a range of social features from 60 | MHD NOVEMBER / DECEMBER 2019

Maggie Zhou, Managing Director at Alibaba Group, Australia and New Zealand. livestreamed user generated content, broadcasted content, online discussion forums, reviews and groups for specific types of consumers such as nursing mothers. I think there are a few takeaways for Australia here on how e-commerce can become more engaging for the consumer.

Are there similarities with the Chinese market?

Maggie: Between Australia and China there are probably more differences in e-commerce than there are similarities.

China is a country with a large, dense population which means features like 30 minute delivery are far more feasible

than in a large, more sparsely populated country like Australia.

As a whole, e-commerce in China is a very social, dynamic and ever-changing experience. Merchants and brands deploy a whole range of features, promotions and marketing activities seldom seen in the Australian market to engage and motivate consumers.

However, one similarity we see is the desire for retailers in both Australia and China to reinvent themselves in the digital era. Although the approach and progress may not be the same, retailers in both countries are seeking ways to revolutionise the customer experience and merge the online and offline

MHD SUPPLY CHAIN

environments to create what Alibaba calls ‘New Retail’.

If an Australian organisation is looking to start selling to consumers in China – what’s the best way for them to go about it?

Maggie: One of the most important considerations for global expansion is for brands and retailers to fully understand their target audience.

Each market has different wants and needs so simply taking your product or offering into the China market in the same format as it is being offered in Australia will often not suffice.

In addition, Australian companies seeking to enter into the China market need to spend time to find the right partner. Alibaba’s flagship event, the Alibaba Ecosystem Expo, has proven to be a great success in terms of allowing Australian companies to network and loop into Alibaba’s wider ecosystem.

Over the course of two-days at the 2019 Expo in Sydney, Alibaba Group saw close to 150 exhibitors and over 13,000 buyers and visitors, industry professionals, and businesses attend to explore the trends and opportunities that the Alibaba ecosystem brings to the Australian market.

What are some of the biggest challenges Alibaba is currently facing with regards to e-commerce?

Maggie: Demand for quality Australian products in China is at an all-time high and continues to grow. However, e-commerce in China is a dynamic and exciting space and brands need to be prepared for changes.

One of Alibaba’s values is ‘change is the only constant’. We are constantly adapting our offering and how we best engage both merchants and consumers to stay relevant and compete in this ever-changing digital world.

opportunity for businesses here to access China’s expanding e-commerce market. Due to Australia’s ‘clean and green’ image, products categories like healthcare products, mother and baby, wine, and snack and packaged foods continue to perform exceptionally well in China.

How can Australian organisations ensure they have low risk when it comes to trying to launch in China?

What’s the best approach?

Maggie: Expanding to any new market will always carry some risk regardless of the approach. However, the emergence of e-commerce provides channels to market that are far lower in terms of both risk and investment than, say, opening your own offline store.

We encourage new brands to take time in identifying the right partners and truly understanding the intricacies of their target consumer. We also support brands to understand the full suite of Alibaba’s product offering to enable them to choose a path to market that suits both their capability, brand awareness and appetite for risk.

Is Alibaba still a good platform for organisations as they grow their reach in China or is it recommended they eventually launch their own facilities in China?

Maggie: Alibaba provides the fundamental technology infrastructure and marketing reach to help businesses leverage the power of the internet to engage with their customers. We support businesses and sellers across a

range of marketplaces including Tmall, Tmall Global and their own dedicated stores powered by Alibaba Cloud.

The internet has made trade easier than ever before and many brands we work with rely on digital systems to connect with consumers to sell products without having a physical presence in China. Alibaba also has a number of ‘new retail’ channels, such as Freshippo and RTMart, to also make it easier for brands and merchants to access ‘offline’ channels.

Q. How do you see the future of retail shaping logistics?

Maggie: Retail is shaping logistics in a number of ways such as using consumer insights to solve the problem of low transport efficiency and high logistics costs.

Cainiao Network, Alibaba’s logistics arm, is aiming towards better time efficiency of package deliveries. At present, Cainiao has reduced crossborder shipping times from an average of 70 days to less than 10 days for some countries. In the future, Cainiao is moving towards a single-day delivery system across China and a 72-hour delivery to the rest of the world.

We are also looking towards a greener future with more comprehensive green campaigns, such as Alibaba Green Logistics 2020. Enabled through world-class technologies, the campaign represents joint efforts across the Alibaba Group to improve material recycling, packaging, route planning and delivery methods to work towards a greener future. ■

Maggie says in China, e-commerce is a far more social experience for the consumer than in Australia.

Which products tend to do well in China and which don’t?

Maggie: Australian products are thriving on Alibaba Group’s platforms.

In fact, during the Double 11 Global Shopping Festival in 2018, Australia was the third most purchased from country with Australia’s Swisse and BioIsland brands ranking in the top five most popular cross-border brands by GMV. This demonstrates the tremendous MHD NOVEMBER / DECEMBER 2019 | 61

MHD EVENTS

SHOWCASING SUPPLY CHAIN LEADERS MEGATRANS2020 will see all facets of the supply chain and logistics together under one roof. MHD sits down with some of next year’s exhibitors to discuss the importance of collaboration and innovation and what they are hoping to gain from the conference.

“

Any chance to connect face-to-face with peers in the transport and logistics industry is a win for us, and MEGATRANS gives us this opportunity.

The environment in which our customers operate is becoming increasingly complex and challenging. You cannot solve complex problems without the sharing of knowledge and alignment of people, process, and platforms. That’s why we’ve built Microlistics WMS from the ground up to be both hardware and ‘third party software’ agnostic.

We’re very excited to share how fast we’ve grown and to showcase the positive experiences of our customers. We’re doing some innovative things to help empower our customers and partners with solutions to drive growth in their businesses. It’s not just solving problems. It’s also about how we can help provide a competitive advantage.”

Archival Garcia, VP Sales – APAC, Microlistics. ■

62 | MHD NOVEMBER / DECEMBER 2019

“

The last MEGATRANS exhibition proved to be a success for us, our displays allowed us to go beyond the confines of traditional marketing.

We connected directly with customers and prospects showcasing our products and offering end-to-end storage solutions.

We’re excited to return, we’ll have the opportunity to display our quality products and talk with the decision makers all in one place. It’s a fantastic opportunity and very rewarding.

BHD will be showcasing Light & HeavyDuty Racking, this will incorporate Shuttle Racking, Cantilever Racking, Pallet Racking & A-Frames.

We’ll be discussing the benefits of our products such as reducing cost, increasing capacity, improving efficiency and protecting stock as well as offering our services for install.”

Jessica Zhu, Managing Director, BHD Storage Solutions. ■

MHD EVENTS

“

Dematic strives to educate potential customers on the many ways automation can provide them with significant benefits and opportunities in addressing the key challenges faced by companies now and in the future.

While companies do have specific market, business and supply chain challenges, some of the challenges common to most companies include increasing labour and land costs and availability, the need for speed and accuracy in fulfilling customer orders, improved occupational health and safety, and the needs for flexibility,

scalability and modularity to address handling of diverse product and order profiles (including omnichannel), seasonality, and future growth requirements.

Dematic is very much looking forward to meeting new customers at MEGATRANS2020.

Understanding their challenges, share our experiences of Dematic’s implementations with leading companies across diverse industries locally and internationally, and starting the discussion about how Dematic can provide them with solutions that address their specific challenges and provide them with the competitive edge.”

Pas Tomasiello, Senior Director Integrated Systems, Dematic. ■

“

Collaboration is very important to PTV, we partner with a range of technology providers that offer complementary solutions to route optimisation. This way we can offer a fully integrated, best of breed, end-to-end solution to our customers. On the other hand, our solutions cover many business verticals, so MEGATRANS is a great opportunity to discuss solutions with clients of different subsectors.

It also presents a great opportunity for us to catch up with our technology partners, identify new developments in the market and at the same time educate the market on the benefits PTV can bring to their business.

We’re really looking forward to meeting with the fleet managers and supply chain managers of the industry to hear about their challenges and see how we can assist them with our solutions.

We’ll be showcasing our awardwinning delivery scheduling solution PTV RouteOptimiser, offering real time execution management with live status updates, customer notification, driver navigation based on real time traffic and much more.”

Joost Bekker, Business Development Director Logistics Software, PTV ■

“

MEGATRANS is the major event of 2020 in our space, and our attendance is vital – we’re looking forward to showing attendees exactly how we can help their business with their industrial property needs.

MEGATRANS is a fantastic opportunity for the industry minds to meet and look at the opportunities presented within our sector as a whole. The growth of this industry globally means we see a multitude of

opportunities for users, particularly in supply chain. As part of the supply chain community, we want to contribute and learn from others!

There will be so many interesting and innovative businesses attending and exhibiting, and we’re looking forward to being part of the event. We’re also looking forward to learning more about future and current opportunities in this space, so we can keep adapting and ensuring we’re aligned with the trends.

At MEGATRANS, our senior,

specialist team will be present showing visitors exactly how we can help create value in their property solution. Our data-backed advice is designed to help make property work harder for businesses, ensuring they have all the information they need to make the right decision. MEGATRANS is a key event for us, and we’re looking forward to further collaboration in the logistics and supply chain space.”

Malcom Tyson, Managing Director, Industrial at Colliers International ■

MHD NOVEMBER / DECEMBER 2019 | 63

MHD MATERIALS HANDLING

IMPORTING EXPERTISE With more than 20 years’ experience in the forklift industry, Stefan Brehm’s new appointment to Vice President South East Asia – Pacific and Managing Director of Jungheinrich Australia provides him with the perfect opportunity to further grow the company’s footprint in Australia.

J

ungheinrich is a German family-owned business, with more than 65 years’ operating in the logistics industry, the business has a strong presence around the world.

Four years ago, the business purchased NTP Forklifts in a move to advance its footprint in the Australian market. “NTP already had a strong presence in Australia, not only with the Jungheinrich brand, but also representing premium product brands such as Manitou and TCM in Australia” which is why we invested in them,” Stefan says.

Earlier this year Stefan Brehm was appointed as Vice President South East Asia and Managing Director of Jungheinrich Australia. Stefan has more than 23 years’ experience in the business and has been tasked with leading this region through a significant growth period. “I’ve held a number of different roles in the organisation.

I’ve worked in service parts, group after sales, corporate organisation and all across Europe,” he says.

Jungheinrich operates in 39 countries and according to Stefan, the South-East Asia region as a significant area of growth. “The Asia region is the fastest growing market in the world and South-East Asia is an important emerging market for us. Australia is also very important, especially from a volume perspective it’s one of the largest areas in this region.”

Stefan is tasked with integrating the Australian branch of Jungheinrich in line with the service and sales support that the company is known for in Europe. He is working on the corporate identity, the way the business operates, the processes and how they go to market.

“My role is to make this area more professional and in line with the corporate service and performance standards of the Jungheinrich group. That will help us to provide outstanding service and product support to our customers and will create important synergies for our further premium brands in our product portfolio such as 64 | MHD NOVEMBER / DECEMBER 2019

Jungheinrich operates in 39 different countries.

“

These vans have really professionalised our engineers, it keeps the engineers that drive them motivated and also promotes Jungheinrich as an employer of choice here in Australia.

”

Manitou and TCM.” Stefan says.

One recent investment in Australia is the deployment of 50 new service vans.

“Previously we had an old car running around but now we’ve invested in these vans we have a consistent corporate design. This design is focusing on the brand and it matches with corporate design everywhere in the world. We have 5,700 engineers worldwide who all have this van.” Stefan says.

Another added benefit of the vans is that they attract new people to join the company, Stefan says. “These vans have really professionalised our engineers, it keeps the engineers that drive them motivated and also promotes Jungheinrich as an employer of choice here in Australia.”

Jungheinrich has also opened a local parts warehouse in Sydney, to allow the engineers to service trucks much more quickly. “We can now focus on our customers and offer a world-class service. Investing in new stock infrastructure we can provide parts for all brands such as Jungheinrich, TCM and Manitou with short lead times.” Stefan says.

A large part of this investment and Stefan’s new role is to demonstrate to the global market that wherever a Jungheinrich truck is purchased, the service will be the same. “For our large customers who operate globally, this is very important. Whether you operate in Australia, France or Belgium it’s the same quality of engineer,” he says.

MHD MATERIALS HANDLING

COMMITTED TO THE BRAND Stefan has been with Jungeheinrich for more than 20 years now, something which he says is not uncommon at the organisation.

“Twenty years at the company is nothing in Europe, there are many people who have been with the company for a long time.

We talk about yellow blood at Jungheinrich and find many of our employees are dedicated to the brand and are extremely committed to the business.”

He attributes much of this to Jungheinrich being a family-owned business that operates on a global level, giving employees the advantage of a global business but with the values of a local family company.

“One of our most important values is trust.

Trusting in the employees and trusting in the company. We have a system called the Jungheinrich way of leadership where we involve employees in strategy and targets so that they know their contribution in the bigger picture of the business,” Stefan says.

One of Stefan’s tasks is also to promote these values and way of working across the teams in the Australian and South-East Asia region.

AHEAD OF THE CURVE Another reason Stefan is so proud to work for Jungheinrich is because of the organisations commitment to technology and innovation.

“At Jungheinrich we think long-term, we look to the future and develop the technologies that our clients will need.

The major development we are across in this area is lithium ion. We invested in this 10 years ago. We were the first to bring this

Stefan is encouraging talented people to join the Jungheinrich team. to market in Europe,” he says.

Lithium ion presents a number of significant benefits, and is a technology that is gaining a lot of traction here in Australia, Stefan says. “It’s a very important trend and there is a lot of interest in Australia, especially when you have trucks needing to operate up to three shifts a day.”

One of the main benefits with lithium ion is that the battery can be charged at any given time. “You can do quick 30 minute charges on breaks, an hour here and there.

You can do it again and again and it has no memory effect. This is a major benefit to our customers,” Stefan says.

Another area that Stefan will be developing in Australia is attracting new talent. “We want the get the right people on board. We want to encourage talented people to join us as we begin to enlarge our market in this space,” he says. ■

Jungheinrich has opened a new local parts warehouse in Sydney.

“

One of our most important values is trust. Trusting in the employees and trusting in the company. We have a system called the Jungheinrich way of leadership where we involve employees in strategy and targets so that they know their contribution in the bigger picture of the business.

”

MHD NOVEMBER / DECEMBER 2019 | 65

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1 ST - 3 RD A P RI L 2020 M E LB O U R N E CO N V E N T ION & E X HI B I T I O N C E N T RE

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MHD WOMEN IN INDUSTRY PROFILE

SUPPORT FOR CHANGE Sondra Kremerskothen won the Excellence in Road Transport award at the Women in Industry Awards earlier this year. MHD catches up with Sondra to learn about the great work she has been doing in training and professional development.

When Sondra reflects on the work that she did at Linfox she is very proud of what she achieved.

S

ondra Kremerskothen completed an extensive career in the Australian Regular Army before transitioning to a career in the transport and logistics industry in 2016.

During Sondra’s time in the army her area of focus was training and her last appointment was as Manager of Career Pathway development and curriculum design for army logistics trades. In 2013 Sondra did a secondment with Linfox for three months, and subsequent to her final appointment in Army, she took on a full-time role with Linfox as Group Training Manager in 2016.

One of the major reasons that Sondra enjoys working in logistics is the commitment to safety that can be found across the industry. “What I really loved straight away is the dedication that organisations operating in this area have in supporting their people and keeping them safe – it’s a primary focus all of the time,” she says.

68 | MHD NOVEMBER / DECEMBER 2019

For Sondra, there are many ways you can have a positive impact on safety through behaviour, skills, training, management and leadership. “It’s an ever-turning wheel, if you get the safety right, people do the right thing, then you get good performance. Then you review safety again and the cycle continues,” she says.

Training within the logistics and transport industry has a heavy compliance requirement, and according to Sondra there was a focus on ticking the box rather than high quality, relevant training.

“I knew that training which improves productivity and safety could also meet the compliance requirements. I modernised the training delivered at Linfox through upgrading trainers; soft skills, and providing flexible solutions for delivery of training to reduce impact on operation,” Sondra says.

At Linfox, Sondra managed 30

trainers, administrators and managers across five sites throughout Australia.

She was responsible for operational training, certificate III training and licensing. In this role, she saw an opportunity to change culture and behaviour within the industry by upskilling the Linfox operational trainer, leading to positive employee behaviour and attitude.

“We developed our trainers to the point where they were able to change behaviour of the employees and students they engaged with. I put a lot of time, energy and resources into the behaviour piece to show that it’s not about who is the better driver but it’s about giving tips on how to become a better driver through behaviour,” Sondra says.

The Linfox training team are now a group of highly skilled logistics transport trainers who are in high demand within Linfox and externally, Sondra says.

THE IMPORTANCE OF PARTNERSHIPS Sondra also recognises the importance of partnerships in generating positive change across the industry. “Anything you want to achieve in an industry like transport and logistics needs to be done as an industry not as an individual.

While there is a lot of competition in the industry it’s important to work together to move forward,” she says.

With an ageing workforce, collaboration and changing behaviour are key to attracting younger talent to the industry, Sondra says.

“I focused on collaboration, safety and behavioural change at Linfox. I developed the trainers to the point where they were able to change behaviour across the drivers and other Linfox employees. Creating a safer and more pleasant workplace

MHD WOMEN IN INDUSTRY PROFILE

“

We developed our trainers to the point where they were able to change behaviour of the employees and students they engaged with.

”

Sondra says anything you want to achieve in this sector needs to be done as an industry not an individual. for a changing demographic to enter the workforce,” she says.

A lot of Sondra’s mindset and outlook came from the work that has been done in the defence industry. “Coming from defence I knew that if you care for people, they are very responsive in changing behaviour.

Changing behaviour creates a trusting environment where people do the right thing,” she says.

AWARD-WINNING TRANSFORMATION When Sondra was announced as the winner of the Excellence in Road Transport award at the Women in Industry awards earlier this year, she says she was initially surprised – largely due to the fact that she had not been in the logistics industry for long.

However, when she reflects on the work that she did at Linfox she is very proud of

what she achieved. “The trainers at Linfox are some of the best in the industry now, I’m so proud of that transformation and what that will mean for the Australian road transport industry over the long-term,” she says.

Sondra is keen to stay in the logistics and transport sector as she says that she has only started to scratch the surface of what can be done. She is passionate about change and positively shaping the work environment for the benefit of all employees.

“For me, it’s ripe for the picking right now. It’s a time for change and safety is at the top of the agenda. I want to be a part of that change and help this industry ensure that it is as safe and welcoming as possible to support the projected growth in Australia,” she says.

For more information, visit: www.womeninindustry.com.au ■

MHD NOVEMBER / DECEMBER 2019 | 69

MHD PROPERTY FOCUS

Leasing an additional warehouse can offer fastest and more convenient access to metropolitan areas.

MANAGING OVERFLOW, OR NEED URGENT SPACE? Tony Durante, National Director, Industrial at Colliers International offers advice for logistics providers looking to find short-term warehouse lease to cope with the upcoming retail rush.

A

s 2019 draws to a close, industry begins to reflect on the year that was and anticipate the next.

But for some industrial occupiers, the year ends with a scramble for extra space to fulfil a short-term need and to plug a hole and connect a missing piece in their supply chain network for the coming months. This countercycle is not wide spread but niche-like for warehouse users with inventory overflows and distributors in need of extra space to satisfy the end of year “retail rush”.

THE RETAIL RUSH The challenge for 3PL’s, e-retailers and last-mile providers to fulfil end 70 | MHD NOVEMBER / DECEMBER 2019

of year orders and deadline deliveries before Christmas often results in a need for additional warehouse space.

Competition between providers is amplified at this time of the year as the need to meet customer orders where online shopping and home delivery has fast become the preferred method to obtain goods. Convenience and fast dispatch of goods to all metropolitan areas can often be satisfied, in the short term by leasing an additional warehouse, and ideally a site where a short-term lease is available. 3PL users usually demand a warehouse with a combination of on-grade roller doors and loading dock entries. Stock can be moved more easily and quickly where

sites have these features together with good truck marshalling areas and 24/7 capabilities. Admin areas are less important as typically short-term requirements from 3PL’s usually only demand warehouse space.

Equally, 3PL’s often seek out additional warehouse space, outside of their usual footprint for short term periods to fulfil demand and client’s needs. Warehouse space that offers a turnkey solution are in high demand, where racking is in place and vacant possession is available at sometimes a day’s notice. Landlord who can quickly transact and accommodate a 3PL at short notice can receive a rental income injection for a period where a vacancy would otherwise be expected.

PROJECT-BASED LEASES For users not affected by the retail rush associated with the end of the year, we see many users seeking short term space to satisfy particular projects. For example, the NSW RMS

MHD PROPERTY FOCUS

even further back to 2011, the huge damage caused by a hailstorm in one of Sydney’s key industrial pockets, Eastern Creek, resulted in the take-up of 130,000sqm of warehouse space within 14 days and vacant warehouses in sudden hot demand as a result of the storm.

Tony Durante, National Director, Industrial at Colliers International. has leased sites that straddle the Sydney M4, typically for the duration of road projects. A two-year lease on office space at Huntingwood has been taken for a road widening project nearby, and a workshop and depot has been leased at Silverwater have served as a stop-gap for project staff to meet and house infrastructure equipment for Westconnex.

In another more unique example, location managers are regularly seeking unique spaces for film production of local mini-series to larger movie production. The likes of Fox and Kennedy Miller lease warehouses for set construction, prop storage and filming, office space for pre-production where leases usually range from a few months to a maximum of twelve months and beyond for larger, bigger budget films.

MORE OPTIONS In industrial markets closer to inner cities, a ‘perfect storm’ for shorter term leasing occurs. Developers with dormant industrial buildings awaiting development approvals and an improving residential apartment market are ready, willing and able to accommodate short term tenants.

Residential developers are seeking 2-3-year leases and sometimes with development clauses which gives both parties flexibility to end the lease should demolition be required. Depending on the business requirement, it can be a solid solution for the short term.

Another option in the short-term leasing market is sub-tenancies.

A tenant who vacates prior to the expiration of your lease, there can be an opportunity to for a short-term tenant to take out the balance of the lease in the perfect scenario.

HAIL, RAIN OR SHINE

WORKING WITH A TRUSTED EXPERT

The other area we see short term leasing is for when we experience inclement weather, and users in the insurance industry need industrial space immediately. I received a call on a Sunday evening from Pickles Auctions, seeking an urgent warehouse to house 5,000 hail-damaged vehicles.

Within a few days, they moved into a 13,000sqm warehouse in Auburn which would have otherwise remained unoccupied for several months. Since December 2018 there have been two major hailstorms across Sydney which resulted over 60,000sqm of warehouses space being leased. Just before Christmas last year, there was a large storm in Sydney, typically a quieter holiday period for those in the industrial property space. However, active property agents were hard at work, seeking immediate space for users who were dealing with the fallout from the storm. If we look

A trusted agent will understand how the intricacies of how your business operates and can move quickly to secure you a property to keep your business running.

We track available vacant buildings and work with Landlords that can move immediately with license agreements on vacant space. Our teams are well-organised and we can help secure vacant space fast and effectively.

That said, the short-term leasing market may not suit all landlords who typically can prefer longer lease terms. Typically, leases range between 5 to 10 years with set reviews.

For landlords who do work in the short-term space, we work with them to ensure the property is in full working order.

Often the time to secure the space is limited, and businesses can pay

a slightly higher rental to ensure business continuity.

Regardless of your need for a short-term tenancy, it’s essential you have a trusted agent who can source you the right property at short notice. An expert agent will help you make decisions quickly and methodically based on their knowledge of market movements and available stock. ■

“

Developers with dormant industrial buildings awaiting development approvals and an improving residential apartment market are ready, willing and able to accommodate short term tenants.

”

About the author: Tony Durante is National Di�ector, Industrial at Colliers International. He has mo�e than 20 years’ experience in dealing with all aspects o� industrial �eal estate. His most �ecent transaction was at the �ormer Mitsubishi distribution cent�e, 19 Ber�� St�eet, Granville o� some 18,000sqm leased on a new 4-year term.

MHD NOVEMBER / DECEMBER 2019 | 71

MHD FROM ALC

INVESTMENTS TO HELP INDUSTRY KEEP DELIVERING T

he dedicated professionals who make up Australia’s freight logistics industry work tirelessly to deliver about four billion tonnes of goods around Australia each year – equating to 163 tonnes of freight for every Australian.

Australia’s overall freight volumes are expected to increase by 35 per cent by 2040 – and the urban freight task is projected to grow by 60 per cent by the same year.

The rail freight task has tripled since the year 2000, road freight volumes increased by 75 per cent between 2000-01 and 20015-16.

At the same time, our urban infrastructure is already groaning under the weight of capacity constraints.

Australia’s growing population, rising levels of congestion on our roads and years of inadequate planning for freight movement are making the task harder.

Modelling from Infrastructure Australia suggests that by 2031, road congestion and public transport crowding alone could cost our economy $39.8 billion, unless we make the right investments.

These factors have created bottlenecks and inefficiencies that affect the performance of our freight networks. The delays and costs associated with these are ultimately 72 | MHD NOVEMBER / DECEMBER 2019

reflected in the prices paid for goods by Australian consumers and businesses.

Of course, freight infrastructure that operates efficiently and safely isn’t only important for domestic consumers and businesses.

Efficient supply chains are critical to getting Australian exports to growing international markets. New free trade agreements and a rapidly-growing middle class in Asia offer Australian producers enormous opportunities to take their goods to new markets.

But time is of the essence – especially when it comes to agricultural produce, where freshness and quality are highly prized by international consumers.

Delays in the movement of export freight from point of origin to ports and airports for export make it harder to exporters to satisfy the expectations of overseas consumers – and harm Australia’s international competitiveness.

SPOTLIGHTING OPPORTUNITIES FOR ACTION During the Australian Logistics Industry Parliamentary Function held at Parliament House in October, ALC launched Help Us Deliver. The publication sets out several opportunities around Australia to deal with bottlenecks in our supply chains through targeted

infrastructure investments and help make certain the freight network continues to operate efficiently and safely.

The priorities identified have emerged though engagement with ALC members and other industry participants, and are spread across the continent. In some instances, ALC suggests making enhancements to existing projects to make them more freight-friendly.

In others, we are recommending investments in new projects to help boost key trade gateways, stimulating export and employment growth.

In some cases, ALC suggests making enhancements to existing projects that will ensure they deliver the maximum possible benefit for the freight logistics industry.

In other instances, ALC highlights opportunities for investments in new projects that will help boost the performance of key trade gateways, contributing to further export and employment growth.

DEALING WITH CONGESTION AROUND PORTS Several of the projects set out in Help Us Deliver focus on the increasingly acute challenge of road congestion around Australia’s major ports.

The includes taking action to rectify

MHD FROM ALC

the short-sighted decision of the NSW Government to remove heavy vehicle access ramps at Canal Road from the Sydney Gateway project. Removing these ramps from the design of the project places its promised congestionreduction objectives in jeopardy.

It will mean that trucks travelling between Port Botany and the Cooks River Intermodal Terminal – Australia’s largest empty container facility – will be forced to continue travelling through increasingly residential streets in Mascot and Botany. This will engender further congestion on local streets, posing safety issues and lessening amenity for local residents in new residential apartment complexes.

It is estimated that constructing dedicated heavy vehicle access ramps at Canal Road would remove at least 1,600 truck movements a day from local residential streets.

In Melbourne, the Victorian Government’s plans to transform the suburb of Fishermans Bend – historically an industrial precinct adjacent to the Port of Melbourne – into an inner-urban community that will be home to some 80,000 residents and the base for 60,000 office workers by 2050 will pose a significant challenge for freight movement to and from the port.

To improve urban amenity and reduce road congestion in the precinct, increasing rail freight movements into the port is imperative. To fully unlock the benefits, Webb Dock must be connected to the Victorian freight rail network. This means that the Fishermans Bend redevelopment must be undertaken in a way that ensures the preservation of rail corridors permitting this to occur.

In Brisbane, a solution must be found that will permit the construction of a dedicated freight rail link from Inland Rail to the Port of Brisbane. This has already been identified as a high priority initiative by Infrastructure Australia, and a recent Deloitte Access Economics report found that achieving a modal share of 30% for rail by 2030 could unlock around $820 million in economic, social and environmental benefits each year.

Separation of the existing shared passenger and freight rail line would also free up capacity on the Brisbane rail network, and allow the scheduling

of additional passenger services as that city continues to grow.

In Western Australia, the Fremantle Inner Harbour provides modern deep water facilities for container trade, break bulk vessels and livestock imports.

While the WA Government is currently examining new port options, port users, exporters and local residents need more action in the more immediate term to deal with road congestion around the Inner Harbour.

ALC suggests investing in six road projects that Main Roads Western Australia has identified that will facilitate access to the Inner Harbour for freight vehicles, and help to relieve road congestion for all road users in the precinct.

FUTUREPROOFING FREIGHT INFRASTRUCTURE There are also opportunities to improve capacity and operation of our freight networks by ensuring that key logistics infrastructure is ready to meet the needs of future.

The interstate freight rail network that runs through South Australia is one of the most critical pieces of infrastructure in the national supply chain, connecting Perth with Adelaide, Darwin, Sydney and Melbourne.

Rail is the dominant transport mode for freight moving between Perth and Australia’s eastern states, accounting for around 80% of the land-based freight market, with volumes forecast to continue growing strongly over the next decade.

To ensure the reliability of freight rail services along this corridor and optimise network efficiency in order to meet a growing national freight task, a number of upgrade works will be essential.

ALC has recommended that the 2020 Commonwealth Budget bring forward the upgrade of 1,190 kilometres of the line running from Tarcoola (SA) to Kalgoorlie (WA). These works would improve the productivity of existing infrastructure by enabling an increase in the maximum axle loading from 23 tonnes to 25 tonnes, improving operating performance.

In Tasmania, strong growth being experienced in the state’s minerals sector requires infrastructure upgrades that will facilitate the export

of mineral products to international customers. This includes investing in a new Bulk Minerals Export Terminal at the Port of Burnie, which would allow the port to cater for Panamax class vessels and help to grow international trade.

Similarly in Darwin, an opportunity has been identified to develop a key maritime and logistics precinct for Northern Australia by investing in the Darwin Ship Lift Facility, which would allow vessels of up to 5,000 tonnes to be lifted from the water for maintenance and servicing.

To further optimise this $400 million project, ALC has recommended that the Federal Government work with Darwin Port, the NT Government, local industry and other key stakeholders to ensure that any Federal contribution to the project also supports concurrent adjacent works that will enhance freight infrastructure and logistics facilities in surrounding landholdings.

This will further stimulate the economic development of Northern Australia by allowing a greater number of freight operators to capitalise on the port’s strategic location.

Investment in freight infrastructure projects such as those highlighted in Help Us Deliver will support the objectives of the recently-released National Freight and Supply Chain Strategy and will help to deliver lasting benefits to Australian consumers, businesses and producers. n

Efficient supply chains are critical to getting Australians exports to growing international markets.

MHD NOVEMBER / DECEMBER 2019 | 73

2019 ASCI EXCELLENCE AWARD WINNERS ANNOUNCED Australasian Supply Chain Institute has announced Linda Venables as the award recipient of the Individual Award for Excellence as well as a host of other organisations for their outstanding contribution in the field of supply chain management.

Winners of this year’s ASCI Excellence Awards.

74 | MHD NOVEMBER / DECEMBER 2019

MHD FROM ASCI

L

inda Venables joins an elite group of award recipients including Lindsay Fox, Nola

Bransgrove OAM, Don Telford, Roger Corbett and Dr John Gattorna, among many others in the 28 years it has been running under the Smart wAwards brand.

“I am humbled to receive such a prestigious award and recognition in the supply chain community. I am grateful for the support and many and varied opportunities I have had in my 20+ year supply chain career.

I look forward to continuing to support ASCI and the ‘formalisation’ of supply chain professional qualifications, to assist career progression and encourage individuals to enter in to careers in supply chain,” Linda said.

AWARD FOR EXCELLENCE IN MANUFACTURING SUPPLY CHAINS Winner: Schneider Electric Australia for the SMART Factory in Adelaide Highly Commended: AstraZeneca Australia for AstraZeneca Australia Manufacturing

AWARD FOR EXCELLENCE IN DIVERSITY & INCLUSION Winner: Western Sydney Airport

AWARD FOR EXCELLENCE IN EVENT, HUMANITARIAN OR MILITARY LOGISTICS Winner: Australian Electoral Commission for the Federal Election of 2019

THE AWARD FOR EXCELLENCE IN SUPPLY CHAIN MANAGEMENT AND DISTRIBUTION Winner: Roy Hill for the Intelligent Supply Chains Highly Commended: Schneider Electric Australia for the SMART Distribution Centre in Sydney Highly Commended: Toll for the Retail and eCommerce Order Fulfilment Centre

THE AWARD FOR EXCELLENCE IN TRANSPORT & LOGISTICS Winner: Schneider Electric Australia for the Pacific Control Tower

Linda Venables won the Individual Award for Excellence.

THE AWARD FOR EXCELLENCE IN PROCUREMENT Winner: Thales Australia for “Supporting the SME Ecosystem in International Supply Chain Expansion”

INDIVIDUAL AWARD FOR EXCELLENCE Winner: Linda Venables Finalists: • Kyle Rogers, Divisional President (VIC/TAS) The Supply Chain and Logistics Association of Australia (SCLAA) • Dr Ferry Jie, Associate Professor and Deputy Director, Centre for innovative Practice, School of Business and Law, Edith Cowan University, WA • Marcus Guzowski, Business Transformation Manager, Asahi Beverages • Ishan Galapathy, Founding Director, Capability Unlimited; former Continuous Improvement ManagerAsia Pacific, Kellogg Company “On behalf of the ASCI Board of Directors and staff, I’d like to congratulate Linda Venables and the award winning organisations for their contribution to our supply chain community. Thank you to the judges who have volunteered their time under a tight schedule despite their professional and family commitments,” Ivan Imparato, CEO at ASCI said. ■

“

I am humbled to receive such a prestigious award and recognition in the supply chain community. I am grateful for the support and many and varied opportunities I have had in my 20+ year supply chain career.

”

MHD NOVEMBER / DECEMBER 2019 | 75

MHD NEWS FROM SCLAA

CELEBRATING ACHIEVEMENT E

PATRICK INGENEGEREN, SCLAA DIRECTOR

very year for almost 60 years a select few individuals in supply chain and logistics have been recognised for their professionalism and contributions in the annual Australian Supply Chain & Logistics Awards. The 2019 ASCL Awards will be held at Luna Park, Sydney on 22 November at a Gala Dinner where the 2019 Award winners will be announced.

With the ASCL Awards being the most sought after, recognised and influential awards across the supply chain, logistics and transport industries, it is no wonder that submissions increase each year and this year is no exception. Businesses and individuals are nominated in one of the seven categories and with the industry undergoing such massive changes over in the last decade, there is more scope for nominations. 2020 will see a review and expansion of the Award categories.

The innovation of systems and technology and an increased emphasis on the environmental impact of logistics activities, has seen unprecedented development in these fields with many individuals and organisations working hard to improve their practices. This development has resulted in great things being achieved in all facets of the industry.

The SCLAA challenges individuals and organisations to showcase their journeys and developments by submitting their success stories in one or more categories for the 2020 ASCL Awards. The call for submissions will open in March 2020.

The Supply Chain & Logistics Association of Australia recognises and celebrates these individuals and organisations who have made a positive difference in this diverse, dynamic and very exciting industry. Be part of the celebrations by joining your colleagues to recognise these achievements on 22 November.

The finalists in each of the 2019 categories are as follows:

INDUSTRY EXCELLENCE AWARD This Award recognises and acknowledges outstanding achievements and contribution by an individual currently engaged across the supply chain industry. Persons 76 | MHD NOVEMBER / DECEMBER 2019

nominated for this most prestigious award will be leaders and will have made significant change to the way a supply chain is managed and improved either academically, physically or technologically.

Originally awarded in 1987 and dedicated to Mike Munns, FAIMM, this award remains a cornerstone of SCLAA’s commitment to recognising and promoting the importance of the supply chain industry and its people to continuously improving organisational strength and growth. 2019 Industry Excellence Award Finalists are: • Amira Amin – Visa Global Logistics • Ryan Cummings – Whale Logistics Australia • Mosh Elkersh – International Cargo Express • Susan Innes – Stanwell Corporation • James Sheerin – Visa Global Logistics

FUTURE LEADERS AWARD The purpose of this award is to provide incentive and recognition to young supply chain professionals who are both currently working in and wish to continue their career path. Nominees for this award should be able to demonstrate their passion and commitment to taking the supply chain toward tomorrow. The SCLAA wishes to showcase finalists and provide impetus to continue to attract the brightest to the industry. First awarded in 2009 and dedicated to Vince Aisthorpe. 2019 Future Leader Award Finalists are: • Val Brusylovsky – Boutique Retailer • Krystel Cochico – Visa Global Logistics • Harvey Delos Santos – Australia Pharmaceutical Industries • Benjamin French – PwC • Caine Jai Ittensohn – Visa Global Logistics • Blake Kelly – Mainfreight • Gabrielle Lee – Qsuper • Gabriella Orazem – Visa Global Logistics • Barnabas Walkemeyer – Lion Dairy and Drinks

SUPPLY CHAIN MANAGEMENT AWARD 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 within a section or across their entire supply chain. Nominees should be able to clearly state the design and achieved results of the project or process that was envisaged and then implemented. The trophy was first awarded in 1984 and is dedicated to Doug Beattie.

2019 Supply Chain Management Award Finalists are: •A diona • Asahi Beverages • C.H. Robinson •C atch.com.au • Metcash Trading Ltd

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 committeemen, application and results of providing training, education and development of their people. The trophy was first awarded in 2002 and is dedicated to the late Professor Peter Gilmour. 2019 Training, Education & Development Finalists are: • ECU, School of Business and Law • Hunter Valley Coal Chain Coordinator •P GT-Reclaimed • Strategix Training Group & Queensland University of Technology (QUT)

INFORMATION TECHNOLOGY AND MANAGEMENT AWARD Information remains the most important requirement of any supply chain.

Information technology is where the majority of supply chain improvements have been made. Nominees for this award will demonstrate where their use of existing or new technology has provided significant improvements to their management of information and/or their supply chain processes. The trophy was first awarded in 1994 and is dedicated to the late Len Smith FAIMM. 2019 Information Technology and Management Award Finalists are: • BlockBit Solutions • Custom Innovation Co. (CIC) •F ulfilio •P olymathian • PTV Group Australia •u Tenant

ENVIRONMENTAL EXCELLENCE AWARD

“

With the ASCL Awards being the most sought after, recognised and influential awards across the supply chain, logistics and transport industries, it is no wonder that submissions increase each year and this year is no exception.

”

The ASCL Environmental Excellence Award recognises corporate leadership contributing to the solution of environmental sustainability within our industry through performance and action. The trophy was first awarded in 1966 and is dedicated to Mr Ken Pike. 2019 Environmental Excellence Award Finalists are: • Adiona & Coca-Cola Amatil • B dynamic Logistics Pty Ltd • Custom Innovation Co. (CIC) •P GT-Reclaimed • PSM Upstream Solutions • Transport for NSW

INTERNATIONAL SUPPLY CHAIN AWARD Recognising that Supply Chains know no boundaries, the ASCL International Supply Chain Award is given to a Company, Association or an Individual that may operate internationally and are able demonstrate their capability, commitment and achievements across any spectrum of the sciences, practices, disciplines or efforts to promote and improve the knowledge and acceptance of the importance of the supply chain. 2019 International Supply Chain Award Finalists are: • Health Promotion Board, Singapore (submission 46) • Health Promotion Board, Singapore (submission 50) • Whale Logistics Australia

LOGISTICS MANAGEMENT AWARD This new award, inaugurated in 2017, and for one of the longest standing disciplines of any supply chain and replaces the Storage and Materials Handling award. The recipient of this Award may stem from the 2019 Award finalists or may be an individual who the Judging Panel feels has demonstrated achievement, improvement or results have required a logistical approach to improvement or major change to their logistics management.

The winner of this Award will be announced on the night. n Join us to celebrate these outstanding achievements and early bird tickets are available until 18 October.

BOOK NOW: https://lnkd.in/gTsUiRb Sponsorship opportunities available.

Contact secretary@sclaa.com.au

MHD NOVEMBER / DECEMBER 2019 | 77

MHD LAST WORD

I

BIOSECURITY LEVY – WHERE TO NEXT FOR INDUSTRY?

n the 2018-2019 Federal budget the Government announced a new levy on all containerised and non-categorised cargo imported into Australia. For containerised cargo, this fee was proposed as $10.02 per twenty-foot container, or $1 per tonne for containerised cargo. The fee was to commence on 1 July 2019 and was intended to be collected via the container terminal operators.

Unsurprisingly, the outcry from industry was loud and swift. Key representative bodies bemoaned the lack of consultation and identified serious issues with the collection methodology. Most concerningly, given that the Department of Agriculture service levels were suffering under the strain of the Brown-Marmorated Stink Bug (BMSB), there was no guarantee that any of the extra revenue collected would be directed back into the Department of Agriculture (DoA) for frontline biosecurity activities.

Eventually, the industry opposition reached the mainstream media and was covered in the Australian Financial Review, the Sydney Morning Herald and other media outlets. Thankfully, the Minister of the Day, the Hon. David Littleproud MP, responded to the concerns of industry and announced the formation of a Ministerial Steering Committee.

In 2019 Freight & Trade Alliance (FTA) Director Paul Zalai was appointed to the Ministerial Steering Committee addressing the design and implementation of the proposed Biosecurity Levy. FTA was joined by other leading representative bodies – Ports Australia, the Australian Institute of Petroleum, Cruise Lines International Association, the Australian Federation of International Forwarders, the National Farmers Federation, Shipping Australia, Qube Ports and the Cement Industry Federation.

78 | MHD NOVEMBER / DECEMBER 2019

Andrew Crawford, Head of Trade and Policy at Australia’s Freight & Trade Alliance (FTA).

While all the Committee members acknowledged the importance of Australia’s biosecurity regime, and the need for appropriate funding, it was abundantly apparent that the levy, in its current form, and particularly the collection methodology, was not the right approach.

Even with the formation of the Committee, policy relating to the levy has encountered issues. On 9 August 2019, FTA and the Australian Peak Shippers Association (APSA) notified their members that the delayed 1 September 2019 implementation date for the Biosecurity Levy was still considered unachievable, as well as expressing deep concerns with the process.

After several meetings, on Wednesday 11 September 2019, the Department of Agriculture (DoA) released the “Biosecurity Imports Levy: A way forward” report, capturing the findings of the Committee. The full report is available on the Department’s website.

FTA and the Australian Peak Shipper Association (APSA) strongly maintained that the appropriate mechanism for the collection of the levy is via the Full Import Declaration (FID), in the same way that other taxes and levies are already collected, and this was reflected in the report and recommendations.

Other recommendations included:

• that the Biosecurity Levy should be subject to a Regulatory Impact Statement; • the creation of a Biosecurity Advisory Council; and • an annual Budget-related paper which would provide a full reconciliation of biosecurity-related revenue and expenditure and thereby assist in clarifying how funds are collected and appropriated, and where they are spent.

FTA and APSA will continue to advocate at the highest levels to ensure that the collection of the Biosecurity Levy, or any other border charge, is pragmatic, achievable and reflects commercial realities. Equally as important, we need to ensure that any additional revenues collected translate to more frontline resources for the Department of Agriculture, better service levels for our importers, exporters and logistics service providers, as well as delivering real biosecurity outcomes.

FTA and APSA will continue to work with our industry colleagues, as well as directly with Senator the Hon. Bridgett McKenzie and the Department of Agriculture on this issue and we thank them for their continuing engagement.

About the author: Andrew Crawford is the Head of Trade and Policy at Australia’s Freight & Trade Alliance (FTA) ■

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VANSTONE PRODUCE

“STANDOUT PERFORMANCE” FUJITSU GENERAL AUSTRALIA

“42% FUEL SAVINGS” LOSCAM

“EFFICIENCY & RELIABILITY” SHIPPING CONTAINER POOLS

“THOROUGH REFURBISHMENT PROCESS” ALLIANCE TRANSPORT

“ VALUE FOR MONEY” FORKLIFT IT

“SAFE, ROBUST & RELIABLE” CTI LOGISTICS

“TECHNICALLY INNOVATIVE” UNITED LETTUCE

“EXCEPTIONAL NEW RENTAL FLEET” SODEXO

“SERVICE & SUPPORT” WINNING GROUP

“BRILLIANT QUALITY” BEST SHEDS

“SUPERIOR SAFETY & ERGONOMICS”

“LOWER EMISSIONS” NAPIER PORT

VELLEX

“OUTSTANDING USED FLEET” PARAMOUNT LIQUOR

FIND YOURS AT LINDEMH.COM.AU Linde provides new, used and rental forklift customers with the unique combination of performance, safety, reliability, efficiency, productivity, ergonomics, service, fleet management tools and support every business wants. Just as importantly, Linde give you the Power to Choose, so that you can select equipment which meets your requirements from both an operational and commercial perspective – not just one or the other.

Call 1300 135 463 now to discover how the switch to Linde will help your business.

1300 135 463 lindemh.com.au

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