NOVEMBER 2020 COVER STORY
TRACK AND TRACE
Loscam, ASCAP and Thinxtra partner to connect the supply chain
WELL-PLACED FOR SUCCESS
The importance of strategically located industrial property
MICRO-MARKETS ARRIVE IN AUSTRALIA
Giving employees a chance make healthier decisions
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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
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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.
he surge in e-commerce has driven a boom in demand for warehouse space. Appetite for industrial property that can service the increasing demands of the online customer is at an all-time high, for both investors and tenants. Global real estate services firm JLL estimates that Australia’s industrial property space has been valued at $90 million, with most investors looking to build a portfolio of between $1 and $1.5 billion. A recent survey of global investors by the company revealed that half of all respondents plan on increasing their exposure to Australia, by the end of 2021. Furthermore, in a Capital Markets Outlook for 2021, Colliers International predicts that the industrial and logistics market is expected to gather further momentum in 2021, due to significant levels of infrastructure investment and the exponential growth of e-commerce. The report states that industrial and logistics property has been brought to the forefront in 2020 and is now the most sought-after real estate asset class among a large share of institutions and private investors. With logistics and retail providers on the hunt for centrally located warehouses to better service consumer demands, property developers have been strategically investing in this space. Throughout this edition of MHD we discover how logistics companies and retailers can benefit from not just new property and storage, but transforming their current site through creative solutions. Stockland, one of Australia’s largest diversified property groups in Australia reveals details about its strategic investment in locations across the eastern seaboard to ensure that Australia’s consumers can benefit from fast and efficient delivery. We also hear from experts across the property supply chain spectrum including JLL, Colliers International, Prological, Raine and Horne and more. With the supply chain sector fundamentally transformed in recent months by Australia’s love affair with online shopping, industrial property is set to play an even more important role in servicing the customer of the future.
ARTICLES All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format. COPYRIGHT MHD magazine is owned by Prime Creative Media. All material in MHD is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in MHD are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.
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MHD Supply Chain
MHD NOVEMBER 2020 | 5
LEGENDARY RELIABILITY ANOTHER GREAT TOYOTA
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ISSUE #10 VOLUME 50
THIS ISSUE COVER STORY
14 The next generation of IoT
SUPPLY CHAIN 29 Good logistics management 46 Healthier, happier employees 52 LINX Intermodal Terminal expansion
TECHNOLOGY 41 Contact tracing technology key to
‘COVID-NORMAL’ 56 Accuracy through emerging technologies
MATERIALS HANDLING 25 Hitting the nail on the head 44 Inside Santa’s workshop 54 A pallet built for automation
INDUSTRIAL PROPERTY 21 Success starts and ends with the supply chain 32 Positioned for success 37 Next generation industrial and NOVEMBER 2020
TRACK AND TRACE
Loscam, ASCAP and Thinxtra partner to connect the supply chain
50 Full house
DEPARTMENTS AND REGULARS 08 News 14 In the warehouse 58 Property focus 60 The last word 62 ALC
WELL-PLACED FOR SUCCESS
The importance of strategically located industrial property
MICRO-MARKETS ARRIVE IN AUSTRALIA
Giving employees a chance make healthier decisions
66 People on the move
ON THE COVER In an MHD exclusive, we find out about the latest IoT technology transforming the end-to-end supply chain with Thinxtra, ASCAP and Loscam.
41 MHD NOVEMBER 2020 | 7
Woolworths rolls out US microfulfilment technology in Melbourne
t the back of its existing Carrum Downs supermarket lies Woolworths’ newly built eStore. Woolworths Group CEO Brad Banducci has labeled the micro-fulfillment technology as a “potential gamechanger” for online orders. Woolworths’ online orders have more than doubled in Victoria in 2020 and the retailer has started picking the first online orders for Melbourne customers, using its Carrum Downs eStore. Woolworths Group CEO Brad Banducci said the eStore is helping the supermarket giant deliver speed and accuracy in the online picking process and allowing more flexible deliveries to the home. Woolworths is the first retailer in Australia to deploy micro-automation technology by US-based Takeoff technologies. “The Carrum Downs eStore will service a key growth corridor in Melbourne and help Woolworths keep pace with customer demand,” Woolworths said. The new high-tech systems in the back of the Carrum Downs store to help ship more home deliveries across the
The eStore uses state-of-the-art technology to sort and move products.
8 | MHD NOVEMBER 2020
southeast. The system is called Takeoff Technologies. The 2,400sqm eStore space, located at the back of its existing Carrum Downs Supermarket in Melbourne, uses stateof-the-art technology to sort and move products from automated storage units directly to team members hand picking customer orders. These units can hold up to 10,000 of the most in-demand grocery products, while fresh fruit and vegetables and meat will continue to be picked from the shopfloor. According to Woolworths, the automation dramatically improves the speed, efficiency and accuracy of the picking process, allowing thousands of online orders to be delivered to customers in south-east Melbourne suburbs each week, including on a same day basis. “As customer expectations continue to rise, we’re investing in new technology to keep pace with the growth and focusing on building an ever more convenient online offer,” Woolworths Group CEO Brad Banducci said. He said the eStore layout also helps reduce congestion in the aisles for
in-store customers, as the retailer’s personal shoppers pick most items in the back of house. Woolworths Carrum Downs personal shopper Belinda Victor with green tote. “This speed and proximity is key to boosting the availability of the same day deliveries more and more of our customers want given their busy lives.” “We’re incredibly excited to launch our first site with the Woolworths Group. Woolworths is an incredible company, and we are thrilled to be working with them at a time when online grocery is taking off,” CEO Takeoff Technologies, José V. Aguerrevere said. Woolworths first announced its partnership with Takeoff in August 2019. Carrum Downs is the first of three initial Woolworths Group sites to trial the capability, with two more in Auckland and Christchurch, New Zealand to follow. Global technology firm Knapp has also helped with the fitout. More than 150 team members will be hired to operate newly built site within the Carrum Downs Supermarket. Insitu Group was the builder and the project created up to 70 jobs throughout the construction.
DHL invests in four new medical specific warehouses across Australia
HL has committed to four new state-of-the-art storage facilities around Australia to ensure the leading logistics provider is ready to deliver a COVID-19 vaccine throughout the nation. The new facilities have a combined floor space of approximately 64,000 sqm across the Sydney, Melbourne, Brisbane, and Perth metropolitan areas. The healthcare-grade facilities will store and manage inventory of pharmaceuticals, medical devices, vaccines, animal health, diagnostics, and consumer health products, to support increasing demand for these products. The additional capacity will also enable DHL to efficiently manage the storage and distribution of any upcoming COVID-19 vaccines. This investment includes more than 9,000 sqm of DHL’s leading cold-chain operations to support the success of critically important cold chain products around Australia which must be stored in temperatures ranging from 2 to 8 Degree Celsius. DHL Supply Chain also
Saul Resnick is CEO at DHL Supply Chain Australia and New Zealand. has proprietary packaging solutions designed specifically for pharmaceutical products to ensure health supplies are delivered in the perfect condition. “The Life Sciences and Healthcare industry is one of the most heavily regulated industries, and DHL is the only 3PL in Australia to provide solutions that meet current global regulations. We have seen growing
interest for our industry-leading cold storage facilities which in turn, drives better outcomes for the storage and distribution of healthcare products. Increasingly, we have also seen a growing appetite for local distribution centres to be an ongoing part of global supply chains,” Saul Resnick, CEO, DHL Supply Chain, Australia and New Zealand said. In addition to the new facilities, DHL Supply Chain will also invest in a new multi-million dollar transport management system and national control tower, to support more efficient consignment planning and offer customers greater visibility of their deliveries. This builds on its existing industry-leading transport solutions, which will soon allow DHL to offer dual-temperature controlled vehicles for delivery of customers’ products in all major capital cities. This solution enhances the existing products which DHL has in place today and will reduce packaging and provide sustainable solutions benefiting the environment.
L’Oréal signs with global WMS provider
ne of the world’s leading beauty companies, L’Oréal, has announced plans to deploy Manhattan Associates Warehouse Management Solution worldwide across its distribution centres over the next three years. L’Oréal, has chosen to implement Manhattan Active Warehouse Management, a global, scalable and agile SaaS-based solution. The first implementation is due to launch by mid2021, with worldwide deployment across L’Oréal’s distribution centres expected by the end of 2023. “L’Oréals’ global network of fulfilment centres play a significant role in making sure the right products reach consumers at the right time, with as little impact
10 | MHD NOVEMBER 2020
on the environment as possible. With Manhattan Active Warehouse Management, we have now a solution that will improve our agility through the digitalisation, efficiency, and productivity of our distribution centres,” Francisco Garcia Fornaro, Group Supply Chain Director at L’Oréal said. Manhattan Active Warehouse Management is the world’s first cloudnative enterprise-class warehouse management system capable of unifying every aspect of distribution, without the need for upgrading. Crafted entirely from microservices, the cloud-based software will usher in a new level of speed, adaptability and ease of use within L’Oréal’s distribution centres. “We are very excited to have passed the
rigorous global selection process and to be able to bring the innovation, scalability and agility of our cloud-native Manhattan Active Warehouse Management solution to L’Oréals’ global supply chain network,” said Henri Seroux, Senior Vice President, EMEA at Manhattan Associates.
L’Oréal has chosen to implement Manhattan’s WMS across its worldwide operation.
Thousands of new recruits wanted to aid Australia Post demand
Australia Post is encouraging people to apply across the range of positions available.
ustralia Post will hire nearly 2900 christmas casuals for transport and deliveries across the country part of its biggest hiring spree in the organisation’s 210-year history. Ahead of what is expected to be its biggest Christmas ever, Australia Post is recruiting over 4000 people across the country to help deliver record parcel volumes.
Nearly 2900 Christmas casuals will be hired across transport and deliveries across the country, with a further 300 fixed term full-time and part-time customer contact centre opportunities in Brisbane and regional areas of South Australia, Tasmania, Victoria and Queensland. In addition to the Christmas casuals, Australia Post is also recruiting around 900 roles in other areas of the business, including across the Post Office network. Sue Davies, Executive General Manager People & Culture said this year’s Christmas casuals will bring a welcome boost to a workforce that has been working incredibly hard all year. “A lot has been expected of our people this year and I’m so proud of the way our team has adapted and dealt with the challenges they’ve faced to keep delivering for Australia across our entire network,” she said. “In managing all the necessary COVID-safe requirements, including a reduced workforce in our Melbourne
facilities during the recent Stage 4 restrictions, our people have gone over and above to provide critical services for businesses and their customers and delivered for over 8.1 million households who have shopped online between March and August alone. “This is a record-breaking recruitment drive for what we expect to be a Christmas unlike any we’ve had before in Australia Post’s history. In a year that has been incredibly challenging and impacted people in many ways, we are delighted to be inviting people to join us this Christmas as we deliver across the country.” Last year, Australia Post received more than 23,000 applications for Christmas casual positions. Earlier this year, more than 50,000 applications were made for the 1,000 casuals hired in response to the impacts of the COVID19 pandemic. Australia Post is encouraging people to apply across the range of positions, particularly for the customer contact centres and transport.
Record 2.7M industrial robots are in operation
new World Robotics 2020 Industrial Robots report has revealed 2.7 million industrial robots are operating in factories around the world with global sales of new industrial robots reaching 373,000 units shipped in 2019 – one of the highest volume in sales on record. The new World Robotics 2020 Industrial Robots report has revealed industrial robots and cobots into factory workspaces is growing. According to the report by the International Federation of Robotics, global sales of new industrial robots reached 373,000 units shipped in 2019, marking the third-highest volume in sales on record, although down 12 per 12 | MHD NOVEMBER 2020
cent from the year before. More than 2.7 million industrial robots were operating on factory floors worldwide last year, a 12 per cent increase from 2018 and a historic high, the report shows. “The stock of industrial robots operating in factories around the world today marks the highest level in history,” Milton Guerry, President of the International Federation of Robotics said. “Driven by the success story of smart production and automation this is a worldwide increase of about 85 per cent within five years (2014-2019). The recent slowdown in sales by 12 per cent reflects the difficult times
the two main customer industries, automotive and electrical/electronics, have experienced.”
The use of industrial robots in the warehouse is growing.
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MHD IN THE WAREHOUSE
MHD Supply Chain
In this month’s MHD warehouse we feature the latest from Morsl, Contact Harald, Ozkor, Toyota and Packsize.
E D I S IN D H M THE E S U O H E R A W
MORSL’S INNOVATIVE FOOD SOLUTION Morsl’s unattended self-serve food and drink markets, available 24/7, are conveniently located within the workplace. Within the micromarkets, the employee picks a product from an open rack display, or reach-in refrigerator and scans the item at the self-checkout kiosk for cashless payment. To find out more, visit: www.morsl.com.au.
CONTACT HARALD’S CONTACT TRACING SOLUTION Contact Harald’s key benefit is the inherent speed at which initial alerts can reach only recorded close contacts, facilitating reduced time to contain an outbreak, implement essential testing and advise self-isolation. Workplaces using Contact Harald become the ‘first line of defence’ and could readily provide digital primary contact tracing data sets (within the context of their workplace) to assist DHHS commence contact tracing earlier than when COVIDSafe details can be accessed. To find out more, visit: www.contactharald.com.
14 | MHD NOVEMBER 2020
MHD IN THE WAREHOUSE
PPX-1165 – PLASTIC RENTAL PALLET • Safer and more hygienic • Automated warehouse compatible • Heavy duty and highly impact resistant To find out more, visit: www.plasticpallet.com.au.
AUTOPILOT REACH TRUCK The RAE range or ‘Autopilots’ are the definitive machines when transitioning from manual to automated movements within large scale warehousing, it is ideal vehicle for Autonomous warehousing solutions. The RAE is offered in three different models; 1.6 tonne, 2 tonne and 2.5 tonne to suit the large range of pallets/load carriers utilised within the Australian material handling industry. For more information freecall Toyota Material Handling on 1800 425 438 or visit www.toyotamaterialhandling. com.au.
X7 MACHINE Improve customer experience, sustainability, and profitability with the X7. The X7 meets the high-capacity packaging demands of e-commerce and fulfillment companies through Packsize’s advanced box production technology and On Demand Packaging® expertise. For more information, visit: www.packsize.com.
MHD NOVEMBER 2020 | 15
MHD COVER STORY
THE NEXT GENERATION OF IOT MHD sits down with IoT leader Loic Barancourt, CEO and Co-Founder of Thinxtra, to find out more about the latest technology that is set to transform supply chains across Australia, New Zealand and Hong Kong.
wenty years ago the term Internet of Things (IoT) was coined by a British technology pioneer named Kevin Ashton. Kevin was working at Procter & Gamble’s research and development department in Surrey, England on a project that used radio frequency and sensors on products across the supply chain to generate data about where the products were, whether they had been scanned, whether they were on a shelf or sold. Fast-forward to today, and there are now billions of physical devices around the world connected to the internet. According to TechJury, there are expected to be more than 64 billion IoT devices worldwide by 2025. Furthermore, IoT has the potential to generate $5 trillion to $15 trillion in economic value by 2025 and the main revenue driver for 54 per cent of IoT projects is cost savings. While IoT is revolutionising the way that we connect with and utilise technology, Loic Barancourt, CEO and Co-Founder of IoT Telco Thinxtra, says this technology is not just about the smart watch or the smart fridge. “The perception of IoT is that it’s consumer play – the smart watch, the smart goods in the home. But this technology is revolutionising so many industries,” he says. Loic is a pioneer and leader of IoT technology and is on a mission to solve operational inefficiencies and sustainability challenges with this technology. After leading some of Australia’s first strategic IoT initiatives in the utilities, health and transport sectors at NetComm Wireless and Sagemcom, Loic discovered first-hand that in order to improve business on a large-scale, the market needed a next generation of
16 | MHD NOVEMBER 2020
IoT connectivity that the existing Telcos were not equipped to service properly. In 2015, Loic co-founded Thinxtra. “We founded Thinxtra with the view to becoming the IoT Telco. Our mission is to bring the next generation of IoT network infrastructure to Australia to enable businesses to connect their assets and become more efficient by making them work smarter,” he says. Working with its international partner Sigfox, Thinxtra deployed and owns the Sigfox 0G Network covering Australia, New Zealand, Hong Kong and Macau. Compared to the more commonly known 3G, 4G or 5G networks, the Thinxtra 0G Network offers a much more cost-effective way to track assets. “In the industrial world, IoT and 5G are associated a bit too much. Of course, you can do smart things with 5G – facial recognition through CCTV, remote surgery, real-time drone control etc. But 0G is more about small data and tracking assets cost-effectively,” Loic says. Thinxtra’s 0G Network, dedicated to IoT applications, presents a major opportunity for those in the supply chain. “The opportunity that this kind of low-cost, low-power connectivity brings to the supply chain is helping to improve visibility and control to supply chain managers and operations managers who would benefit from knowing more about what is going on with their assets in the field. Basically, it’s about making assets such as rollcages, IBCs, ULDs, kegs, or even pallets work harder and smarter in your supply chain,” Loic says.
LESS IS MORE Visibility and control are two of the main aims in supply chain management
and Loic says in order to get there with technology, the first step is to think about what you really need to measure and understand. “If you want to know that at 8am at any given depot you have 15 roll cages available so you can process and deliver all the parcels you need to in your network that day, then you only need to use small data that is extracted from your roll cages maybe once or twice a day,” he says. This approach is very different to the big data approach, when you need to know where everything is at any given time. “What you really need to make better decisions in your supply chain can be captured in only a couple of messages a day from your assets,” Loic says. When you break the technology down to what is really needed, it becomes a very cost-effective solution and with some assets in the supply chain costing as little as $200, it’s important that any tracking technology is cost-effective. “With our 0G Network, we have totally disrupted this space in terms of price point. If you think small data, you can really make the business case stack up,” Loic says. A recent global example of this technology delivering transparency and efficiency gains can be seen with a 0G-enabled tracking project deployed by DHL, one of the world’s largest logistics providers. More locally, a partnership between Loscam and Active Supply Chains Asia Pacific (ASCAP) is revolutionising the high-value packaging rental market with a track and trace solution. “The Loscam and ASCAP stories are inspiring examples of how industrial IoT can transform logistics. In our region, Thinxtra is working with many customers using IoT to improve supply
MHD COVER STORY
Loic Barancourt is CEO and Co-Founer of Thinxtra. chain resilience with fit-for-purpose, scalable solutions offering near real time visibility to control assets and make them work harder,” Loic says. The tracking devices that are attached to assets and connected to the 0G Network, bring things alive and transmit information about location or conditions such as temperature, humidity or shock. This information is usually only required two or three times a day, which means that the battery in these tracking devices lasts up to seven years, in line with the lifecycle of, for example, a roll cage. This creates a ‘set and forget’ situation where operations can just keep running without the need to maintain the tracking devices or the network. The relevant data just keeps coming for the life of the asset. “Supply chain organisations can now know where all their returnable packaging solutions or assets are, every day with a business case that stacks up. It’s simple. It’s IoT at work.
This is a great example of how small data can deliver big things,” Loic says. Knowing where assets are not only decreases loss rates, but it also enables a much more efficient operation and better asset utilisation. “If you don’t have the right container at the right place at the right time, it will disrupt your operations and impact the bottom line,” Loic says. Once these opportunities for efficiencies and a reduction in loss starts to come together, the business case for IoT stacks up. “If you simplify the approach and use small volumes of valuable data, it becomes very economical to enhance visibility and better monitor and control your assets. You remove friction across the supply chain, you no longer need to pick up the phone to find your lost assets such as IBCs or stillages, you know where they are,” Loic says. As supply chains are put under more
pressure, visibility and control will be crucial to better service customers. “You don’t need to send team members out with a clip board to count and find out where your assets are. You can do it all remotely and better utilise the workforce you have,” he adds. Loic is excited about the fact that large scale industrial IoT adoption is growing rapidly in Australia. “We are past the ‘early adopter’ phase and are now working with many ‘fast followers’ to make sure they don’t miss out on this next generation of efficiencies. 0G connectivity in the supply chain is becoming mainstream. We will soon reach a stage where operations managers who have assets out in the field and who don’t know where they are nor how they are doing becomes the exception,” he says. Thinxtra’s approach is technology agnostic - they offer connectivity solutions from 0G to 5G - depending on their clients’ needs. But in the supply chain - for non-powered distributed assets that need to ping less than 10 times a day, nine times out of 10, 0G is the right fit. “With 0G, you sacrifice bandwidth to get a very long range and a very long battery life for your trackers. It doesn’t take much energy to send a message on the 0G Network so you can get a battery life of six to seven years, as opposed to a few months to a maximum of 3 years battery life on the 3G/4G networks with the same small batteries.” Loic adds.
BEYOND RFID The supply chain industry is today very familiar with RFID technology, and this has largely been used to track assets that are low-cost. However, Loic says while RFID can create efficiencies, it relies on someone physically scanning the assets or assets going through a gate and will only give you information at the time of scanning. That leaves a lot of blind spots. “The difference between RFID and IoT is that with IoT your supply chain can become scanless and frictionless. You do not need to rely on a person scanning the assets properly, IoT data is accessible remotely and just automatically communicates as many times a day as you want it to,” he says. ■ MHD NOVEMBER 2020 | 17
MHD COVER STORY
Left to right: Caine Groves, Operations GM at ASCAP; Michael Winter, Cutomer Solutions Manager at Loscam; Daniel Bunnett, Executive Vice President - Australia and New Zealand at Loscam and Craig Stanford, Director at ASCAP.
A GAME-CHANGER FOR EVERY STEP IN THE SUPPLY CHAIN After a decade of trialling expensive, complex and inefficient track and trace solutions, leading Asia-Pacific pallet and returnable packaging solutions service provider Loscam has deployed Thinxtra’s IoT solution. MHD talks to the parties involved in the project to find out more.
oscam’s track and trace journey started more than 10 years ago. “We have a large volume of high value assets in our supply chain supporting a broad customer base with an extensive product range. We therefore knew that being able to track and trace these would present all parties with some significant security, cost savings and efficiency gains,” Daniel Bunnett, Executive Vice President – Australia and New Zealand at Loscam says. In addition to well-known services as a pallet hire company, Loscam also hires out high value assets including intermediate bulk containers (IBC), stillages and foldable bins for use in supply chains. When Daniel and his team first started looking at capabilities around tracking these assets, they were underwhelmed. “The business case just wouldn’t add up. The only options on the market were bulky devices with poor battery life and operating on an expensive 18 | MHD NOVEMBER 2020
network such as 3G,” he says. A few years later, RFID started to take off and again Daniel considered this solution for Loscam but found that it was simply not fit for purpose. “RFID is only as good as the last scan in or out and the market needed a more real time solution for true value to be realised,” he says. Loscam operates a truly dynamic supply chain. “An average trip for our equipment can pass through five or six customers and can be out in the field for up to six months or longer. Our operations might see a pallet issued in Melbourne, Victoria and receive it back from Tully, North Queensland or even further across the Asia Pacific region,” Daniel says. When a supply chain stretches across so many locations throughout a long period of time, visibility is crucial. “You need visibility at all times, not just at the point it’s been scanned,” Daniel says. After revisiting track and trace solutions more recently, Daniel was
pleased to find that the technology had moved forward. “When we first connected with Thinxtra, we knew that the 0G network was going to be a huge opportunity for us,” he says.
IOT AT WORK Loscam is working with Active Supply Chains Asia Pacific (ASCAP), a leading-edge Australian Supply Chain Management company as one of it’s first clients to adopt Loscam’s Track and Trace solution . This project involves the Australian East Coast transport operation for one of the world’s largest automotive manufacturers. ASCAP rents Loscam’s Gpak stillages on behalf of this OEM customer in order to move its spare parts and accessories across the network of dealerships in Australia. “When we got started on this project, we noticed that our customer was using 30 per cent more units than we predicted we would need to run this operation and
MHD COVER STORY
we were perplexed,” Craig Stanford, Director of ASCAP says. In the first several months of running the project, Craig and his team quickly realised why extra units were being used. “Within three months of running this contract,we lost track of more than 100 units. Each unit costs $2000, so that quickly became an alarming amount of value to lose,” Craig says. It took nearly 10 weeks to recover the assets and a lot of manpower. “We had lost assets in Brisbane, Sydney, Melbourne, Adelaide and everywhere in between. We were getting on the phone, visiting dealers, trying to track these assets down manually. Eventually we managed to get them all back in the supply chain, but it took a massive amount of work,” Craig says. After Loscam fitted the assets with Thinxtra’s IoT track and trace solution, the leading automotive provider is now able to gain a significant cost saving through ASCAP being able to reduce the amount of assets on hire in the network. “Now we have a reliable track and trace solution, we only need to run a fleet at 70 per cent of the levels we started with , and we have stopped charging our client for the extra 30 per cent. This adds up to many tens of thousands of dollars savings to our client each year,” Craig says. Caine Groves, Operations GM at ASCAP also comments on the additional costs of chasing lost assets that go largely undocumented. “Whilst we can say that the static value of the asset is $2000, there is the additional loss of all of the extra costs of finding the assets. Our operational teams can spend a large amount of time and effort re-tracing previous locations, meeting with the network, educating the network, time out of the operations and phone calls. All of this recovery takes a lot of administrative resources as well as costs on accommodation and travel,” he says.
POSITIVE BEHAVIOURAL CHANGE As well as the benefits of cost-savings, all parties involved in the project also commented on the positivity in the change of behaviour of many businesses across the supply chain who may have previously misplaced assets. “There are significant advantages in renting packaging solutions which is a model adopted as best practice across
the globe. However, it does require a certain discipline in ensuring the assets are managed accordingly. If this process is neglected, our customers do have the risk of increasing equipment shortfalls that add potential cost and liabilities. These circumstances are frustrating and certainly not the kind of conversations you would ever want to have with your customers,” Daniel says. According to Craig, it took the industry about nine months to really understand that ASCAP could now pinpoint exactly where the assets were. “But once this happened, it was a positive change in the type of communication we were having with the dealerships. No one wants to have the conversation based around saying ‘I think you have lost my asset’. So this new technology allows us to pinpoint exactly where the asset is, how it arrived there, and that conversation is much easier and more partnership based,” Craig says. Previously there was a lot of guesswork about where certain assets in the supply chain were. “We ran a manual in-andout book and made many estimates. Like most of us in the supply chain services industry we never really knew where our fleet was in the network. But now with our trackers communicating three times a day exactly where they are, we can work much more efficiently and accurately,” Caine says. “The effort to track the assets manually is quite disproportionate to the return we receive for managing them on behalf of our customer, so this solution has been a real winner for all stakeholders,” Craig adds. For Craig, the asset only needs to communicate three times a day. “This level of communication suits us. It gives us the feedback we need and it will also alert us if we have any battery or location issues,” he says. All parties are very pleased with the results. Craig says if they continued to lose assets at the rate they did before, he would hate to think where they would be if they didn’t have this technology.
AN OPPORTUNITY TO GO FURTHER For Daniel, this is just the beginning of the journey and he says while the early statistics around cost-savings and limiting losses are impressive, it’s about more than just the tracking. “This is
really powerful data that can help shape business processes, reduce bottlenecks, manage delivery times, assess risk, compliance, the opportunities are endless,” he says. There are also opportunities to move forward with sustainability commitments, a strong focus for Loscam. “We feel that by having this kind of traceability and accountability of a rental fleet, we will be able to convert a lot of our customers who are hesitant to use reusable packaging,” Michael Winter, Customer Solutions Manager at Loscam says. Daniel says that Loscam has well and truly met its initial purpose of reducing loss across its high value assets, and he is excited to see IoT solutions being used across more assets in Loscam’s fleet. Working closely with their clients, Loscam continues to deploy IoT trackers that will be connected to Thinxtra’s 0G Network. “Loscam has been trading for nearly 80 years and this will clearly be one of the most exciting projects undertaken in our time. It takes our business to the next level and we are excited to be working with our strong and capable technology partner Thinxtra,” Daniel says. Craig also speaks highly of Loscam and its commitment to innovation. “For Loscam to come to the table with this solution is very mature. They make money whether we lose assets or not. So, for them to invest in this initiative is really a positive thing for the entire supply chain,” he says. “There are many opportunities in the supply chain around high value product and asset tracking, so being able to implement the first phase of the IoT solution in the operational environment of a customer and demonstrate efficiencies has been very rewarding. It also has let some of our team responsible for these assets sleep better at night,” Caine adds. Both Caine and Craig see real opportunities for all stakeholders and users of Loscam IBCs into the future through location transparency, increased control and better decision making. All parties are in agreement that this is a game-changer for the industry and excited to see where this technology can provide further efficiency gains and cost-savings. ■ MHD NOVEMBER 2020 | 19
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MHD INDUSTRIAL PROPERTY
SUCCESS STARTS AND ENDS WITH THE SUPPLY CHAIN A new offering joining expertise across the supply chain, architecture and property sectors has formed to increase transparency; help organisations operate more efficiently and deliver the best outcome for the client every step of the way. MHD finds out more.
Peter Jones is Managing Director and Founder of Prological.
ith the supply chain becoming increasingly complex and more emphasis placed on speed and convenience, there is an increased need for retailers and logistics providers to be able to operate from flexible, well-located and efficient warehouses. According to Peter Jones, Managing Director and Founder of Prological, a supply chain consultancy based in New South Wales, the pace of change in logistics and supply chain has been accelerating rapidly over the past five years. The result is an ever-increasing requirement for an industrial property to be designed with operational efficiency in mind from the get-go. “This accelerated pace of change is down to several different things. Largely, it’s about supply chain capabilities and understanding starting to make its way up into the
Sam Rigoli, Partner at Pedavoli Architects. board room and C-suite. It’s also related to the cost of automation significantly decreasing and e-commerce consumers placing more pressure on our global and national supply chain networks,” he says. Recognising that there was a way for all facets of the supply chain to work together more closely when it comes to designing and delivering a new facility for an organisation, three specialist organisations have formed a partnership to offer an end-toend solution. From the supply chain capabilities area, Prological heads up the project. For architectural and building design purposes, Pedavoli Architects is the advising consultancy as well as project managers for the tendering and construction. From a property strategy perspective, ResolveXO secures the property on the best terms possible.
Brendan Jordan is Principal and Industrial Property Strategist at Resolve XO.
A NEW WAY TO DO BUSINESS Historically, in industrial property, many projects would start with the site selection and acquisition. Following this, a building would be designed and built to fit this specification. But for Peter Jones and his partners, success begins and ends with the supply chain. “The problem with the old process is how the building will function, and its detailed operational aspects are often not built into the design. For example, suppose you haven’t considered the business case for automation in the early stages. In that case, you might think you need a 10,000sqm facility when, in fact, you only need 6,000sqm after you have considered the case for automation,” Peter says. These mistakes or lack of consideration at the beginning can lead to significant costs down the track for the client, which Peter wants to avoid. “If you start with site acquisition, MHD NOVEMBER 2020 | 21
MHD INDUSTRIAL PROPERTY instead of detailed consideration of the operations of your warehouse, you can end up with something too big or too small, unfit for purpose down the track, or even unsuitable for the vehicles you need to move in and out of the warehouse,” he says. Peter and his experienced team at Prological consider what their clients need now, and well into the future. “We work on three, five and ten-year horizons. We then build as much flexibility into the modelling and design options as possible,” he says. Starting with the end in mind drives a better outcome for the client and allows for flexibility and changes in business over time. “A little bit of investment upfront will save our clients a significant amount of money over time,” Peter says. The Prological supply chain team leads the project the entire way. “Once we have a brief, we produce a high-level design of what the warehouse operation looks like and then establish what a building envelope should be. Then we work with the architects at Pedavoli to make sure that all the minor operational and functional details of the warehouse are properly considered. From there, we produce a very detailed brief for the industrial property strategists at ResolveXO so they can find the right space for our client,” Peter says. The benefit of working with Prological is that they have expertise across all facets of the supply chain. “We understand all the systems in this area. We have expertise in international and domestic freight, warehouse design and layout, warehouse management systems, materials handling, automation, transport management systems and the integration of all of these systems,” Peter says.
DRIVING BETTER OUTCOMES THROUGH PARTNERSHIPS For Sam Rigoli, Partner at Pedavoli Architects, this proposition aligns closely with the way they historically do business. “We like to be at the forefront with our clients and be involved as early as possible so that we can bring value to the design. We get involved at the feasibility stage to make sure that the building supports the function of the business,” Sam says. Efficiency is a driving factor for Sam and the clients he works within the industrial sector. “We focus on design efficiency across the entire project from the macro down to the individual elements that make up a project, which is why we want to work closely with the client from the start of the process. We find the outcomes of this approach lead to significant savings that a client can then invest back into their bottom line. By offering 22 | MHD NOVEMBER 2020
If you start with site acquisition, instead of detailed consideration of the operations of your warehouse, you can end up with something too big or too small, unfit for purpose down the track, or even unsuitable for the vehicles you need to move in and out of the warehouse.
this end-to-end approach, we can really make these efficiency gains provide a great outcome for our clients,” he says. Sam recognises that a suitable building is just one piece of the puzzle and being able to offer added expertise around the site and supply chain is only going to drive a better outcome. “We can bring our expertise in design and architecture to the table and work with subject matter experts in supply chain and real estate to generate the best overall outcome for the business,” he says. That is evident in Pedavoli’s commitment to sustainability. “Traditionally, industrial is a high energy consumption area, but we are passionate about driving better sustainability outcomes for the environment. We work with our clients to establish ways that not only reduce carbon emissions but also result in significant efficiency gains,” Sam says.
INCREASING TRANSPARENCY With regards to the real estate part of the puzzle, Brendan Jordan, Principal and Industrial Property Strategist at Resolve XO, says the same kind of rigour applied to every other part of the supply chain is needed. “If you invest the proper time and resources and get the strategy right at the start, you are in a much better position to get a good property deal for your business. It’s important to be well-organised and understand the market, so you negotiate on an “apples for apples” basis. That way landlords are likely to be more responsive, and you get a better deal,” he says. Brendan speaks very highly of the expertise across the partners and says there are huge benefits in knowing precisely what kind of facility you are going to build when you go to market for the site. But he also warns that, when it comes to real estate, it’s essential to ensure your agent is acting in your best interests at all times. “One of our differences is that we are completely transparent in our fees and costs. We don’t have any association with landlords and only act for occupiers, so we can act and negotiate on behalf of our clients without any conflicts of interest,” he says. Between them, Prological, Pedavoli Architects and ResolveXO offer a well thought out, co-ordinated and knowledgeable approach that drives a better outcome for the tenant, which is the fundamental driving factor for every party across this partnership. As Peter Jones says, “For us, it’s about being upfront and honest with our client so that we can give them the best possible outcome available to them - both now and into the future.” ■
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MHD MATERIALS HANDLING
TOYOTA FORKLIFTS HIT THE NAIL ON-THE-HEAD Toyota’s reputation for quality, durability and reliability from the high standards of the globally employed Toyota Production system was a key selling point for a NSWbased truss and frames business.
thriving truss- and framemaking business working alongside a multi awardwinning hardware store have three Toyota Material Handling Australia (TMHA) forklifts and a sweeper at the heart of their daily operations. Located in Polo Flat, Cooma, in New South Wales’ Snowy Mountains Region – roughly 100 kilometres south of Canberra – High Country Truss and Frames, and adjoining business, Cooma H Hardware, experienced exponential growth over the last 10 years thanks to Canberra’s booming building industry, and a fleet of Toyotas equipped to handle bourgeoning workloads. Manufacturing roof trusses, wall frames and flooring systems, High Country Truss and Frames was originally opened as an extension of Cooma H Hardware. Mirroring its staff growth from three to 20 employees over the last decade – split evenly between the two entities – the Toyota ‘engine room’ at the heart of the third-generation family run business started with a single gaspowered 32-8FG25 forklift in 2013 and two more – another 32-8FG25 and a gas-powered 3.5-tonne 32-8FGJ35 forklift – were added over a seven-year period. All three Toyota forklifts were in the fleet simultaneously in March, last year. Duties include using the 3.5-tonne 32-8FGJ35 forklift for handling large packs of trusses and wall frames. One of the 2.5-tonne 32-8FG25s handles smaller packs in the plant and its twin is used in the hardware store for loading and unloading building materials. High Country Truss and Frames manager, David van der Plaat, says the most recent addition to the business was a TMHA SP850 electric walk-behind sweeper 12 months ago, predominantly
The truss and frame business was built on the current site at Polo Flat – Cooma’s industrial area. for cleaning the hardware store warehouse and drive-through. “In the drive-through there are a lot of vehicles coming in-and-out, so roadgrime and dirt, and dust accumulates there,” David says. “It was one of the first of the new TMHA sweeper models at the time and it works well. The sweeper has made it so much easier to clean the floors right-up. We’re happy with how it performs.” David says himself and his two sisters, Elizabeth and Jannene, took over the hardware business from their father’s family, who started it in the late seventies. The trio has run the hardware store together over the last 20 years. Presiding over both businesses, David predominantly runs the truss plant – along with Elizabeth – and Jannene manages the hardware store. The truss and frame business was built on the current site at Polo Flat – Cooma’s industrial area, 10 years ago and around five years ago the decision was made to move Cooma H Hardware there too, after designing and building the new premise we moved in two years ago as co-manager,
Elizabeth van der Plaat explains. “We had outgrown our previous hardware premises in town. Access was awkward, it was not purpose built and it was on the main street coming into Cooma so loading and unloading trucks was a daily challenge, so we amalgamated both businesses on the new site,” Elizabeth says. “Our new building is single-level, purpose built and has a big yard with plenty of storage space. It’s a fantastic store and has been recognised with awards including Hardware & Building Traders’ (HBT) Regional Store of the Year 2019. We also won Hardware Australia’s New South Wales Hardware Store of the Year, over 2500 square metres.” Elizabeth says the trusses, frames and flooring systems are constructed from Hyne T2 pine timber and Multinail metal connector plates, and software. The business started out in the single residential segment and has since branched into large-scale multiresidential, with some jobs being up to 100 townhouses. The business had some older MHD NOVEMBER 2020 | 25
MHD MATERIALS HANDLING forklifts from another brand but as they reached end-of-life, David was influenced for several reasons to make the Toyota switch. TMHA Area Sales Manager, Queanbeyan, Mark Elvins, says Toyota’s reputation for Quality, Durability and Reliability (QDR), resulting from the high standards of the globally employed Toyota Production system, was a key selling point. “We at TMHA employ the same exacting Toyota Production System used internationally, so customers are assured of the same high levels of QDR – which is a major cornerstone of our Toyota Advantage. David liked the reliability of our brand. “It didn’t hurt that Cooma was the first home of Toyota in Australia, because of the original Snowy Mountains Hydro-Electric Scheme, so our brand is strongly affiliated with Cooma historically and has proven our reputation for durability and reliability here since 1958. “Another tenet of the Toyota Advantage is Lower Total Cost of Ownership and that’s something David came around to, after initially buying cheap equipment that caused him problems and ultimately cost him in the long-run. He was prepared to pay more for something quality, that would be long lasting and have a lower cost of ownership in the long-run. “The price of a forklift is only a small part of the total costs incurred during a forklift’s operating life and our forklifts can save businesses thousands with less downtime, impressive productivity and generally higher resale values.”
The most recent addition to the business was a TMHA SP850 electric walk-behind sweeper.
26 | MHD NOVEMBER 2020
David likes the reliability of Toyota brand. David agrees that his approach to material handling equipment investment has matured since the business’ inception. “When we were starting off, we went more on pricepoint, but through experience we decided it was better to pay a bit more and trade that off for quality,” he says. “Toyota’s reputation for quality preceded it ahead of our decision to purchase TMHA equipment and they have proven reliable so we added another, and another, Toyota forklift to our fleet – which wouldn’t have happened if the first and second machines had problems. “We can’t afford downtime so we need them to be reliable. Our first one is seven years old and has proven reliable. We haven’t really had any issues with them, so we’re happy with the product.” David’s experience with Toyota motor vehicles also instilled faith in his decision to invest in TMHA forklifts. “For 30 years, I’ve always had Toyota cars and I’ve definitely found the same reliability, quality and durability for those as has been the case with the Toyota forklifts so far. “We’ve had three HiLuxes, two Prados, a 4-Runner and a Corolla, and never had a problem with any of them. So that definitely influenced my decision to go with Toyota Material Handling equipment, as well. “We also considered getting a better resale value for Toyota forklifts when it’s time to retire them. We’ve always found that to be the case with our Toyota vehicles, so we’re expecting the same for our Toyota material handling machines.” David says the specification process was quite straight-forward. “I talked to Mark about what I wanted, we ran
through a few things and he organised it for me. I’ve been around forklifts all my life, so I knew what I wanted and we got exactly what I wanted.” TMHA’s Mark Elvins says another tenet of the Toyota Advantage, Nationwide Parts & Service, was applicable to the business. “We have one of the largest nationwide branch networks in Australia so we’re never far away if a customer requires us, and David is only an easy drive down the highway.” David describes TMHA support and service as being “solid”. “Mark is only an hour up the road if we need him, so having him located nearby is handy. The other brand we were dealing with were all the way up in Wollongong and it was really hard to get them out here in a reliable fashion. With Toyota, they’re not far up the road and they have a regular servicing cycle, and they stick to it. “We used to have a different outfit for servicing but now we have Toyota to do all their servicing and it has been really good. It’s convenient because the one service technician can look after all the machines in a single visit and it’s easy to get parts because they stock them. “They come in and undertake the servicing and if there’s any additional work to be done they give us a quote, and then they fix it – although there hasn’t been much in the way of nonstandard work.” Asked to pick the most prominent feature that influenced his decision to go with Toyota forklifts, David nominated his favourite value in the QDR ‘trifecta’: “Their reliability is definitely the biggest thing, for me – and I love the colour.” ■
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MHD SUPPLY CHAIN
GOOD LOGISTICS MANAGEMENT Andrew Coldrey, Vice-President Oceania at C.H. Robinson tells MHD readers that analysis of risk, thorough forward planning and the support of experienced logistics providers, can better equip SMEs to compete against larger organisations.
Forward planning gives companies the peace of mind by knowing that upcoming risks and interruptions are accounted for.
upply Chain management is often an area of weakness for Small/Medium Enterprises (SMEs), which can lack the knowledge or cash flow to invest in internal technology and logistics managers. Consequently, they will no doubt feel the pain of logistical disruptions more than larger organisations, which have the infrastructure to absorb the costs and reorganise its supply chain on short notice. C.H. Robinson Vice-President Oceania, Andrew Coldrey has expressed the importance of good logistics management for SMEs. “While getting your product to your customers is the end goal, the process of how it is transported is a key consideration,” he says. “SMEs face a number of hurdles when aiming to transport their goods efficiently and therefore it is crucial to
business survival that the end-to-end journey is well managed.” When ensuring effective logistics management, SMEs should consider three key areas; these are risk management, forward planning and engaging with a logistics provider that protects your business and provides visibility solutions, such as the container prioritisation tool.
RISK MANAGEMENT A level of risk must be assumed when transporting goods, regardless of the mode, as some elements of the journey, such as weather disruptions, port delays and global pandemics are out of a company’s control. However, by identifying all potential risks in the transport journey, counter-measures can be implemented to mitigate them. During times of non-crisis, risk management is often seen as an
afterthought, rather than a key element of effective planning. Research by the Global Supply Chain Institute at the University of Tennessee has shown that only 25% of companies’ end-to-end supply chains examine risk factors. The COVID-19 Pandemic has shone a light on weaknesses in supply chain and where companies have left themselves open and vulnerable to risks. “If this pandemic has taught us anything, it’s that issues and risks can come out of nowhere and companies without a risk management program are leaving themselves vulnerable,” Andrew says. “A primary element of risk management is determining at what point in the journey does the risk transfer from seller to buyer. “Using internationally recognised measures such as the Incoterms, easily defines the responsibilities upheld MHD NOVEMBER 2020 | 29
MHD SUPPLY CHAIN by the buyers and sellers, clarifying which party bares the risk at which point in the supply chain.” By identifying all potential risks and utilising Incoterms, SMEs are able to develop solutions that minimises the overall impact to the organisation.
FORWARD PLANNING One of the best ways to mitigate both known and unknown risks is to implement solid forward planning practices. With the air freight industry strained and severe congestion impacting sea freight, forward planning has become even more crucial. The reason SMEs are often disproportionally impacted by supply chain disruptions usually is because they operate with smaller inventory. Consequently, any adverse impact on inventory will often have a greater effect on an SMEs overall business. By forward planning more conservatively when it comes to stock levels and product arrival buffers, SMEs can often reduce the impact on the overall organisation. Forward planning gives companies the peace of mind by knowing that upcoming risks and interruptions are accounted for and secondary measures are put in place to ensure an efficient supply chain. “Planning for disruptions such as Gold Week in China and extra congestion during the peak Q4 period, enables an SME to minimise supply chain issues and maintain a strong product flow,” Andrew says. “The management of end-to-end supply chain relationships are crucial to identifying inefficiencies and adapting existing planning models to account for interruptions.”
Supply chain visibility and keeping up to date with technology developments are major issues for SMEs.
30 | MHD NOVEMBER 2020
The management of end-to-end supply chain relationships are crucial to identifying inefficiencies and adapting existing planning models to account for interruptions.
A reason SMEs are disproportionally impacted by supply chain disruptions is due to usually operating with a lower inventory level. Consequently, any inventory affected will often be a larger proportion of their overall business. By forward planning more conservatively when it comes to stock levels and product arrival buffers, SMEs can reduce the impact on the overall business.
ENGAGING A SOLUTION DRIVEN LOGISTICS PROVIDER Supply chain visibility and keeping up to date with technology developments are major issues for SMEs, which unlike their larger counterparts, often lack the cashflow to invest heavily in logistics. While risk mitigation and forward planning can be undertaken in-house, they are enhanced when overseen by a knowledgeable and experienced account manager. C.H. Robinson’s investment in technology helps the logistics provider to guide customers of all sizes navigate the complex and everchanging environment. C.H. Robinson’s container prioritisation tool enables customers to see the location of their containers in real time, facilitating supply chain adjustments as necessary. The visibility provided by these solutions provides a peace of mind that SMEs may be unable to receive with internal insights. Effective logistics management is crucial for all businesses regardless of size. Through analysis of risk, thorough forward planning and the support of experienced logistics providers, SMEs can be better equipped to compete against larger organisations. ■
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MHD INDUSTRIAL PROPERTY
POSITIONED FOR SUCCESS MHD catches up with Tony D’Addona, General Manager, Workplace and Logistics at Stockland to find out why the leading property developer is well-placed to meet the increasing demand across eastern seaboard industrial property markets.
s e-commerce numbers soar, demand for industrial property that is well positioned close to major consumer markets continues to dominate the property space. A recent report by investment bank UBS described industrial property as a bright spot in the real estate market, as supply chains adapt and logistics operators adjust to changing consumer behaviour. According to Tony D’Addona, General Manager, Workplace and Logistics at Stockland the golden rule of real estate has always been about ‘location’ and industrial property is no different. “Where a warehouse is positioned in relation to the market it services is of vital importance and e-commerce is putting a major focus on ensuring the supply chain operation focuses on proximity to population,” Tony says. Since the nation was forced to make
Stockland is one of Australia’s leading diversified property developers. 32 | MHD NOVEMBER 2020
Tony D’Addona is General Manager, Workplace and Logistics at Stockland. the shift to online shopping during early COVID-19 restrictions, largely due to the closure of bricks and mortar stores and a nationwide ‘stay home’ directive, e-commerce volumes have reached record highs.
However, Tony says this trend was well on its way before the pandemic hit. “Changing customer needs and expectations have been the driving force to the shift online. Technology, in particular mobile devices have become such an important part of our lives and a major enabler of shopper convenience. This in turn changes the entire way a supply chain operates. It becomes primarily about speed to customer and reliability,” he says. In 2019, Australia Post predicted that 12 per cent of consumer spending would be conducted online by 2021 and reach 16-18 per cent by 2025. However, COVID-19 accelerated this shift and online hit 12 per cent of total retail as early as March 2020. Furthermore, it is anticipated that by the end of 2020 online spend will hold 15 per cent of the total retail market. Stockland is a one of Australia’s leading
MHD INDUSTRIAL PROPERTY
With transport being one of the most significant costs in the logistics puzzle, location is more important than ever. diversified property developers. Its operations in the logistics and business property space encompasses a portfolio of more than 30 assets, worth around $3 billion primarily across the eastern seaboard. Some of its key tenants include QUBE Logistics, Toll, AWH and major retailers. “We own about 1.2 million sqm of warehouses and at the moment our occupancy is in the high 90s,” Tony says. With expertise in the development, management and ownership of physical property, Stockland has invested in strategic locations to ensure that Australia’s logistics and retail organisations can service the rising demands of consumers. “One of the biggest disruptors this
industry has seen for a long time is the shift to online. Customer experience is at the forefront of retailers thinking and supply chain efficiency and fulfilment is going to be a major focus for 3PLs and retailers. Where the property is located will play a major role in the overall distribution process including last mile operations,” Tony says. E-commerce has heightened the focus to be close to the population. “You need to be close to road, rail and ports but you also need to be close to your end user, whether that is a business or consumer,” Tony says. With this in mind, Stockland has invested in core locations to ensure that
there is industrial property available close to Australia’s largest urban populations. “Most of our assets are in middle ring suburbs or close to major distribution arteries in Sydney, Brisbane and Melbourne. We have invested in close proximity to major existing population nodes and future growth corridors,” Tony says. Stockland also benefits from being a major player in the retail property space. “Our broader commercial portfolio also includes retail centres. We own more than 30 shopping centres around Australia, operating in this space not only provides us with important data and shifting consumer trends, but it also allows us to leverage our deep retailer relationships” Tony says. Stockland works with major players on both their retail and warehousing needs. One such example is Australia’s largest home entertainment retailer, JB Hi-Fi. “We recently completed a new industrial facility for JB Hi-Fi in Melbourne. We were able to work really efficiently with their team to secure this new premises because we already have a partnership with them through our retail network,” Tony explains. With retailer and supply chain working closer than ever before, there may also be opportunities to work smarter around last mile logistics and the complicated and costly processes such as return logistics. With expertise across both retail
MHD NOVEMBER 2020 | 33
MHD INDUSTRIAL PROPERTY
Stockland’s operations in the logistics and business property space encompasses a portfolio of more than 30 assets, worth around $3 billion.
and industrial property Stockland is in a unique position to support retailers through this transformation. Furthermore, with transport being one of the most significant costs in the logistics puzzle, location is more important than ever. “Rental costs are around five to 10 per cent, but transport reaches around 40-45 per cent. The next evolution of distribution will be ensuring that the facility that services the end user is as close to them as possible. I think there will be some exciting and innovative ideas in this space in the coming years,” Tony says. For Tony, e-commerce presents both challenges and opportunities as increased volumes and faster fulfilment times make a compelling case for technology and automation. “There will be an acceleration in the use of technology and automation within the distribution and fulfilment process. This could be a major opportunity for the 3PLs to leverage their own scale and ability to invest in innovative solutions to service customers who don’t have this ability or appetite themselves” he says. As restrictions ease and we move into a new normal, Tony thinks much of this shift 34 | MHD NOVEMBER 2020
Most of our assets are in middle ring suburbs or close to major distribution arteries in Sydney, Brisbane and Melbourne. We have invested in close proximity to major existing population nodes and future growth corridors.
to online is here to stay. “People have become more comfortable with shopping online and been able to experience the benefits and convenience during a challenging time. The volumes may settle down a bit, but I think we will land well ahead of previous projections,” he says. This is good news for the industrial property market both in Australia and worldwide as more logistics providers and retailers will be seeking to enhance their customer experience journey and as a result review their supply chain and fulfilment operations. “There is still a considerable amount of pending obsolescence in warehousing product in Australia that will not be able to cater to the demands of a modern supply chain operation, and this will create further development opportunities for us” Tony says. With increased demands comes a need for more reliable, well-located and modern warehouses and Stockland is well placed to service that demand. “We have a $3.1 billion new supply pipeline of warehouse and business park opportunities that we will be rolling out across Australia’s major urban markets of Sydney, Melbourne and Brisbane over the coming years,” Tony concludes. ■
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MHD INDUSTRIAL PROPERTY
NEXT GENERATION INDUSTRIAL AND LOGISTICS PARK
Silk Contract Logistics at Roe Highway Logistics Park.
Roe Highway Logistics Park is the largest industrial and logistics park to be established in Perth in more than a decade. MHD speaks with Judd Dyer, Director at Hesperia to find out more about the opportunity.
estern Australia is the only state in Australia to experience economic growth in 2019-20. Business investment grew by 9.3 per cent, the strongest growth in eight years and growth in Western Australia’s domestic economy for 2019-20 is the strongest since 2012-13. According to Western Australia’s government, the state confronted COVID-19 from a position of strength. The growth in the midst of a pandemic was underpinned by strong business investment and driven in part by the mining sector as it was able to continue to operate. The strong economy of Western Australia has continued to drive demand for well-located industrial land in the central sub-region space. “It’s very rare to find centrally located large pieces of land for industrial purposes in Western Australia,” Judd Dyer, Director at Hesperia says. In early 2015, responding to the
diminishing supply of premium and well-connected industrial land, Western-Australian property developer Hesperia identified the potential for a new industrial park in Kenwick. At that time, the site comprised approximately 30 separately owned rural-residential land holdings. Extensive negotiations to acquire the various landholdings were completed in 2017 and in early 2019, Hesperia started developing Roe Highway Logistics Park. The industrial park has now become the largest industrial estate to be established in Perth in more than a decade. “Roe Highway Logistics Park offers tenants and businesses a competitive edge when it comes to supply chain efficiencies,” Judd says. The park is one of the few railside industrial developments in Perth with direct freight rail access and RAV7 connectivity, offering
tenants maximised freight movement efficiency. “When you think about logistics at its core, it’s about minimising double handling and reducing travel time. With this site you can operate truly multimodal operation, with road, rail, air and port connectivity,” Judd says. The acceleration of e-commerce is also dominating the Western Australian consumer market much like it is in the larger cities of Sydney and Melbourne and this is also driving a need for logistics operations to be as centrally located as possible. Located on the corner of Roe Highway and Welshpool Road East within 13 kilometres of the Perth CBD and five kilometres from Perth Airport, Roe Highway Logistics Park will also benefit from rail freight access via the Kenwick Freight Rail Facility due to be completed next year. With only a limited number of land opportunities remaining, Roe MHD NOVEMBER 2020 | 37
MHD INDUSTRIAL PROPERTY Highway Logistics Park can cater to requirements from 2,000 sqm to over 50,000 sqm and a number of big brands are already running their operations out of the park. One aspect of industrial property in Western Australia that is different to the east coast of Australia is that there is less instances of speculative building. “We tend to operate more on a pre-lease model here in Western Australia. But what that does allow us to do is develop a more tailor-made building for every client. Every tenant has specific requirements, and we are able to cater to these,” Judd says. With industrial property of this standard and location in Western Australia hard to find, it’s not surprising that Roe Highway Logistics Park is already 80 per cent committed. Victorian-based logistics provider Silk Contract Logistics operates out of the park from a 21,500 sqm warehouse across a four-hectare lot. In addition to Silk, major tenants include Northline, BP Australia, CHEP, Expro and KTrans. A further guiding principle of the development was sustainability, and Hesperia has committed to this across design and functionality of the site. “For many major international companies, sustainability is at the forefront of their business decisions and we have considered this across the design. To this end, we are pushing to reach carbon neutrality within our own business over the next few years, and
Aerial of Roe Highway Logistics Park, which is now 80 per cent committed.
38 | MHD NOVEMBER 2020
BP Kenwick with truck refuelling at Roe Highway Logistics Park. we also have a heavy focus on energy, recycling, carbon offset and water efficiencies,” Judd says. Furthermore, Hesperia recognised the importance of making an industrial park a place where people want to work with amenities and opportunities for creating community. “We have deliberately focused on making sure that every employee and visitor to the site has an opportunity to refresh and take a break at the café with food and beverage options,” Judd says. For Judd, some of the existing industrial sites tend to have a kettle in the kitchen at the back of the shed but
he says thankfully that has changed and he is passionate about creating desirable places to work for the logistics industry. “We have created areas where you can go and refresh or have a meeting. Having amenities for employees is now something that is on the agenda for many large corporations and we are proud that we have created a place where people can have a bite to eat and some options for taking breaks,” Judd says. For more information about Roe Highway Logistics Park and final land opportunities, visit – rhlp.com.au. ■
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CONTACT TRACING TECHNOLOGY KEY TO ‘COVID-NORMAL’ An Australian based technology platform is transforming contact tracing in highrisk industries and offering the ability for a workplace to run a contact trace within seconds, before the Department of Health and Human Services initiate an investigation on a suspected or positive COVID-19 case.
head of what is expected to be its biggest Christmas ever, Australia Post announced in October that it is recruiting over 4000 people across the country to help deliver record parcel volumes – the biggest hiring spree in the organisation’s 210-year history. Nearly 2900 Christmas casuals will be hired by Australia Post across transport and deliveries across the country. With peak logistic movements happening across retail, manufacturing, postage, and transport sectors - many organisations are hiring more employees to aid busy operations at distribution centres. However, a level of concern is felt amongst employers in ‘high risk’ industries due to the increased risk of exposure to COVID-19 in warehouse and distribution centres. Elissa Reid, Director of Product and Safety at Contact Harald says employers can be confident to fully operate their business during this peak season through measures to ensure people feel safe within their working environment. Contact tracing solution Contact Harald provides this simple line of defence for Australian businesses operating in highrisk industries, allowing them to manage infections swiftly, and prevent an entire business closure in the event that a staff member becomes unwell. Contract tracing has skyrocketed to the forefront of workplace safety. As Stage 4 restrictions began to ease in Melbourne at the end of October, the Victorian Government began ramping up surveillance testing when supermarkets and food distribution centres returned to full capacity. Workers in such distribution centres will be tested for COVID-19
regardless of whether they have symptoms or not, but as we’ve seen in many cases - it only takes one case to implement a full site shutdown that can lead to dramatic consequences for the business. Contact tracing solution Contact Harald provides this simple line of defence for Australian businesses operating in high-risk industries, allowing them to manage infections swiftly, and prevent an entire business closure in the event that a staff member becomes unwell. “At a tipping point in time, where we aim to return the country to a place of normality, what matters most isn’t just the amount of testing, but the speed of communication and tracing to minimise further spread,” Elissa says.
FIRST LINE OF DEFENCE Elissa says through Contact Harald wearable Bluetooth cards, businesses become the first line of defence. In
Australian industries are relying on Contact Harald to speed up contact tracing. the case a declaration of a suspected COVID-19 or positive case occurs in a workplace, a contact trace can be run in seconds on site. “Essentially, this solution shifts the line of defence to the workplace, rather than waiting valuable time for the Department of Health and Human Services to initiate an investigation,” she says. In a large distribution centre, especially 24-hour operations, a complete site shutdown is likely to occur if a suspected COVID-19 case has been alerted to the workplace. One minute in shut-down can cause a surge in delays that last days in busy distribution centres and during peak season - complete shutdowns need to be avoided at all costs. “We want to inform employers that Contact Harald will minimise shutdowns due to the data intelligence that can allow business MHD NOVEMBER 2020 | 41
Contact Harald’s solution is a wearable card, providing piece of mind that employees health and privacy is protected. continuity,” Elissa says. Using wearable, stand-alone card technology and operating on low-energy Bluetooth technology, Contact Harald provides businesses with the confidence to safely manage their staff’s health by recording card-to-card interactions within a defined facility. Contact Harald cleverly determines when two people have been in close proximity of each other within certain set time limits, allowing for easier, faster detection. Should an individual become unwell, the data stored on the card issued to them while on-site is flagged within the system, automatically matching data to other cards active in the worksite active at the same time. This allows businesses to manage potential health risks, and immediately identify and alert staff to take swift action to isolate, get tested and better manage the health of their own immediate contacts outside of the business. Elissa highlights that there is a significant difference between this solution and a mobile application. Contact Harald is not an app. It does not require downloading anything onto personal or work phones where there is a risk to accessing personal or confidential information via hacking or access to metadata. No personal information is stored on a Contact Harald card, the data isn’t stored externally and remains 42 | MHD NOVEMBER 2020
within a workplace’s secure database. “Confidentiality was a key focus in the development of Contact Harald, we understand that privacy is a major issues for both businesses and their staff members, so it was important to develop a wearable card that provides the entire workplace with peace of mind that both their health and their privacy is being protected,” Elissa says. “Because our solution is a wearable card it is worn for an employee’s entire shift. We’re not interested in workers behaviour; it simply is detecting whether one or more Contact Harald cards have come in contact for more than two minutes for the sole purpose of tracing.”
COVID SAFE CHRISTMAS “In supply chain industries, sometimes the nature of the job such as passing product and picking items, physical distancing isn’t a practical option. This is where our card is that insurance policy from tracing with other cards in two-minute intervals,” Elissa says. She says Australian industries are relying on Contact Harald to speed up contact tracing to slow the spread of COVID-19. The technology was already existing, but Contact Harald rapidly reimagined the Bluetooth cards in May this year to be an
essential contact tracing tool for a wide range of industries. Since then, businesses in the USA, Singapore, UK and Australia have implemented the Contact Harald cards as part of their on-shift employees attire. Contact Harald’s customers include a Federal Government in Asia Pacific, Multiplex, and other major infrastructure companies, food manufacturing and retailers including Koko Black. Contact Harald is in discussions with major supermarkets and shopping centres in regard to implementing its system. Elissa credits the wearable technology as a visual compliance. “For workers walking around a distribution centre, when they can see that other colleagues are wearing the Contact Harald card clipped to them it gives them peace of mind that their employer is taking their health and safety seriously in this uncertain time,” she says. “Especially when Christmas casuals are coming on site, this visual compliance sings out that we’re all in this together and staff feel like they are being safe guarded to the highest degree possible.” When Melbourne was forced into lockdown again in late June, Melbourne business Koko Black felt the pinch immediately, and went on the lookout for technology that would help it operate more safely for staff and safeguard its business continuity. Nicholas Georges, CEO, Koko Black - part of Grill’d Group of Companies, went on the hunt for a product that would ensure they could manage any outbreak in the lead up to their busiest time of the year, after trialling several devices, they landed on this solution. “We installed Contact Harald at the height of Victoria’s stage 4 restrictions. It gives us confidence that as we get closer to Christmas, we’re not going to have an event that pushes us off the rails. As for the return on investment, there are employee morale benefits. Staff were worried but seeing this tool and the company’s diligence has had a positive impact,” Nick says. “Contact Harald gave us the confidence that as we get closer to Christmas, we’re not going to have an event that pushes us off the rails. Even the staff have more confidence; seeing this tool and the company’s diligence has had a very positive impact.” ■
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MHD MATERIALS HANDLING
INSIDE SANTA’S WORKSHOP
From life size porcelain unicorns to miniature keyrings, Australia’s favourite wholesale gift supplier has maximised its 12,000 sqm warehouse space to ensure bulk quantities of novelties are available for kids and children at heart.
almar started as a single retail shop in 1971 on the Gold Coast and since then, it’s evolved to become Santa’s biggest competitor with an impressive portfolio of wholesale gift and homewares. Malmar operates from a purpose built 12,000 sqm volumetric warehouse, showroom and offices. “This means we’re able to hold bulk quantities of our huge range of products. Seriously, there isn’t room to swing a cat in there,” Dave Turner, Director of Malmar Group says. Malmar works with retail chains, gift shops, homeware stores and novelty outlets, delivering a world of quality homewares and gift products. “We have over 40 years’ experience in the giftware and homewares import and wholesale supply industry. Our expert buying team travels the world to find affordable, wholesale gifts that are of high quality that will sell fast,” he says. With the increase in sales online and consumer demand for gift products direct to their door, Malmar partnered with Combilift five years ago to ensure its new facility could be utilised to its maximum capacity as more toys, plates, artwork and furniture items were being purchased and distributed.
ESSENTIAL PARTNERSHIP Whilst Santa relies on a sleigh to move gifts from A to B, Dave says Combilift’s Aisle Masters have been a magical success to reaching new heights. Five years ago, the company was struggling with their previous racking layout and were considering a costly move to a bigger space that would constantly require upgrading. “We weren’t happy with our current machinery, so we trialled Combilift’s Aisle Masters and we were thrilled that Combilift was closely involved in the design of our new 44 | MHD NOVEMBER 2020
Malmar’s site is home to four Combilift Aisle Masters. facility,” Dave says. “They were like Santa’s helpers.” Combilift worked with Malmar to design and construct a highly beneficial racking layout for its new warehouse in Coomera on the Gold Coast with 10,000m2 of pallet space available. “We did the design and construct of a new shed and Combilift optimised a custom made racking solution and picking design before the
building was finalised. This allowed us to design the shed around the racking - which is the opposite of what most people do,” Dave says. He credits the process as a secret success to a smooth operation. “We could design all the structural components like columns, internal plumbing parts and control drops so there was minimal impact on forklift routes,” Dave says.
MHD MATERIALS HANDLING
Combilift worked with Malmar to design and construct a highly beneficial racking layout for its new warehouse in Coomera on the Gold Coast.
MAGIC MACHINERY Dave said narrow aisle racking and machinery to accompany it has been vital to hold bulk quantities of Malmar’s growing range. “More racking capacity has been a game changer for the quantity of products we can distribute,” Dave says. He highlights the implementation of Combilift Aisle Masters at the Gold Coast site for facilitating and managing the movement and sale of giftware around the clock. “Homewares and novelties come in at all different sizes and weights, so the combination of racking and versatile forklifts ensures safe handling of fragile objects whilst also maximising storage space,” Dave says. The site is home to four Combilift Aisle Masters and Dave says there are definitely more units in the pipeline, especially with the Federal Government’s instant asset write off program that will allow the business to claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use. He says in a time of soaring online order volumes, this is a massive advantage. However, despite the instant asset
write off, Dave says the Combilift Aisle Masters are a cost-saving investment that is key to their operation. “We have essentially doubled our warehouse space in pallet storage. Going twice as high halves the rent of a warehouse space,” he says.
SKY HIGH Dave says the Combilift Aisle Masters can soar to 15 metres in lift height. “By optimising your racking layout and reducing aisle widths down to as little as 1.6 m, you can dramatically increase your storage capacity within your existing facility,” he says. “It’s cheaper and effectively free to go higher! It’s amazing how much space can be utilized in one warehouse. Our units can reach up to the roof,” he says. “If you have five rack levels and it’s optimised for another level, you can get up to 20 per cent free space. Dense capacity and going higher is key.” Dave says the operation has never been busier. He credits the Combilift Aisle Masters’ battery capability, allowing maximum power through double shifts. “Our workers have appreciated the ergonomic design and the low
We have essentially doubled our warehouse space in pallet storage. Going twice as high halves the rent of a warehouse space.
maintenance and reduced downtime of the units. They’re very easy to operate on any floor surface of our facility,” he says. “Without our partnership with Combilift we would have needed a warehouse that was double the capacity. We are confident in the optimisation of our existing facility so as consumer demand increases for giftware and homewares, we know we can continue to get the job done and maintain our position as Australia’s favourite gift supplier.” ■ MHD NOVEMBER 2020 | 45
MHD SUPPLY CHAIN
HEALTHIER, HAPPIER EMPLOYEES
MHD finds out more about a new fully automated self-serve food and drink marketplace that is helping employees make healthier choices in their workday.
A micro-market is entirely automated. Employees make their selections and use a self-service payment kiosk.
any workers in the supply chain and logistics sector are required to work shifts. Shift work and irregular or long working hours can adversely affect employee’s health, safety and wellbeing. Working shifts can have a significant impact on the way people eat and the types of food and drinks they consume. Making healthy choices regarding nutrition is not only important for long-term health and preventing chronic diseases, but also for maintaining day-to-day productivity and energy levels. After working for 17 years in an office environment, Karla Borland, CEO and Founder of Morsl, an Australia-based provider of healthy self-serve food and drink markets, recognised that there was a gap in the market to empower people to make healthy yet convenient choices while at work. “I would find myself at the vending machine in the afternoons and would be presented with an abundance of unhealthy and non-nutritious choices,” she recalls. In search for a healthier solution than the regular workplace vending machine that was commonly stocked with 46 | MHD NOVEMBER 2020
chocolate bars and sugary drinks, Karla came across the micro-market concept in the US. A micro-market is a compact, self-serve store that provides fresh and healthy food and drink options 24/7. They are entirely automated and feature a mixture of fresh foods such as salads, sandwiches and wraps as well as pre-packed snacks and healthy drink choices. Essentially operating like a mini supermarket, employees make their selections and use a self-service payment kiosk to pay for their items. In the US, micro-markets have been on the rise and global companies such as Tesla, BMW and Amazon offer this convenient service to their employees across sites in the US. “I wanted to find a way to offer a curated range of healthy products in a convenient way that would solve the challenge that most workers have when trying to make healthier choices, and then I came across the micro-market concept in the US,” Karla says. Karla has since launched Morsl, one of Australia’s first micro-market providers. Some of Morsl’s first clients include Macquarie Bank,
Karla Borland is CEO and Founder of Morsl. Officeworks and Qantas. After bringing the solution to market Karla quickly realised that the issue of a lack of choice in making healthy food choices was arguably an even bigger issue in industries such as logistic and supply chain. Often for logistics and supply chain professionals, access to healthy food is near impossible and this issue is often combined with long hours and shift work. “In logistics industry workers tend to work long hours with shorter breaks. So, the micro-market concept is really well-suited to this environment,” she says. Furthermore, onsite cafes in industrial parks usually close around 2pm, meaning shift workers have to rely on vending machines for their food during their working hours. “Often the staff who work the night shift don’t get the same level of service and choice regarding food and nutrition as the staff working in the day,” Karla says. This was the case with Officeworks Despatch Warehouse in North Rocks, NSW – one of Morsl’s customers. “The inhouse café couldn’t service all
MHD SUPPLY CHAIN of the shifts. So, we installed our micromarkets and now all staff have access to healthy food options regardless of when their shift takes place,” Karla says. Morsl offers a full end-to-end solution. “From the installation, to servicing the market, to tailoring the product depending on your workforce – we take care of everything,” she says. Recognising that people have different tastes and dietary requirements, Morsl develops bespoke offerings for different workplaces. “We make sure that the food is perfectly tailored to the eating and work habits as well as demographic of any particular workplace,” she says. Morsl also restocks the markets regularly which benefit from real-time monitoring so there are never any stock issues. This allows the micro-market to service an increased workforce if need be. “If the team size increases at peak times, it’s very flexible. We just reservice the markets more often,” Karla says. Furthermore, it’s not solely about healthy food choices but about a balanced eating lifestyle. Morsl operates on an 80/20 rule whereby 80 per cent of the products are nutritious and 20 per cent are, what Karla describes as, indulgent. “We’re also very flexible with our clients. At one location, a significant number of staff were requesting meat pies, so in line with our 80/20 philosophy we have introduced meat pie Thursday’s for this client and the staff love it.” Morsl also takes care of the marketing and works on building excitement and culture in the workplace ahead of
The micro-market concept is well suited to the logistics industry, where employees work long hours and take short breaks.
I wanted to find a way to offer a curated range of healthy products in a convenient way that would solve the challenge that most workers have when trying to make healthier choices.
Morsl offers a balance of 80 per cent healthy food options with 20 per cent of the range offering more indulgent options.
a micro-market launch. “We make it exciting for the staff and we also support the communications. We provide various content on the benefits of products, specific promotions as well as product comparisons. We communicate what snacks work well for what kind of shift or work you are doing,” Karla says. A compelling case for the logistics industry, Morsl has just confirmed one of the world’s largest online retailers will install their micro-market solution at their site in New South Wales. “More than 600 workers are based here across 24/7 shift patterns, so the micro-market provides a convenient solution,” she says. Encouraging employees to make healthier choices throughout their day results in a more productive and healthier workforce overall, Karla says. Poor eating habits combined with a lack of physical activity can put people at a greater risk of developing chronic diseases including type 2 diabetes, heart disease and some cancers, so it’s a huge benefit to be able to offer a workforce healthier lifestyle choices. “Our mission is to help people eat better in their working day. Boosting immunity and bolstering gut health are often not considered when it comes to workplace food and drink choices. We want to completely change that and give people choices that benefit them and their overall health at work. By doing this, we can boost morale, promote personal health and well-being and create workplaces that enhance company culture so organisations can attract and retain quality talent,” Karla concludes. ■ MHD NOVEMBER 2020 | 47
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MHD INDUSTRIAL PROPERTY
Storage and staging overflowing into aisle space creates a raft of follow on issues within a warehouse.
FULL HOUSE Allan Frydman, Principal Consultant – Supply Chain at JLL tells MHD readers what signs to look out for when trying to understand if a warehouse is full and how organisations can react, adapt and re-engineer before having to relocate.
ccording to Allan Frydman, Principal Consultant at JLL there are many symptoms that point to a warehouse being full. “If you are starting to see overtime going up, your warehouse getting messy. If product is left on the floor in the receiving area, or you’re struggling to put orders away or get them out on time, then a lot of these signs can mean that your warehouse is full,” he says. Generally speaking, if there is a huge decline in productivity, then this is a sign that something is up, Allan says. “Another sign is that you might see an increase in safety incidents. Typically, when a warehouse is at capacity, housekeeping also goes down and accidents go up,” he says. While many organisations look at these symptoms and make the conclusion that they need to relocate their supply chain operation, this isn’t always the case. “The trick is to look at your symptoms and try and understand what is causing the issues. When you understand what is causing them, you can make judgements on whether your warehouse is
50 | MHD NOVEMBER 2020
full or not,” Allan says. Finding out that a warehouse is full can be problematic for a business, particularly when they have signed a 10-year lease. “Sometimes people don’t do anything about their warehouse being full because they are three years into a 10-year lease,” Allan says. This is where expert supply chain consultancy comes into the picture. “A lot of our clients are asking us how they can sweat their asset. They want to know what they can do smarter to help increase the lifespan of the existing asset they have already invested into,” Allan says. Being able to understand what is driving the inefficiencies in the warehouse provides an opportunity to re-engineer the existing space to improve efficiency and productivity, without the need for an expensive relocation. “We call this the highest value solution. It’s low capital cost, but drives a better outcome for the client,” Allan says. JLL works with its clients in the industrial property space to
get to the bottom of the issue and implement a strategy that will rectify the inefficiencies in the most costeffective way possible. “We look at the process flow and understand where the inefficiencies are occurring, and most importantly why they are occurring,” Allan says. The benefits of having expertise in both property and supply chain disciplines allows JLL to deal with the issue in innovative ways. “Whilst we determine how a client’s facility should run from a supply chain perspective, we are also optimising their property portfolio, so we are developing strategies that ensure that our customers aren’t burdened with a three-year lease tail,” Allan says. Over the last five years, supply chain has seen a significant amount of disruption and Allan says that it is very common to find that a warehouse operation does not keep up with the rate of change within the overall business. “Very few warehouses incorporate the people and processes who can drive change. We find that when the facility is struggling to process
MHD INDUSTRIAL PROPERTY
“ Allan Frydman is Principal Consultant - Supply Chain at JLL. the operational volumes required, their business has changed, their customers have changed and nothing inside the warehouse has changed,” he says. This is a prime example of the importance of re-engineering. “We re-evaluate what the customers require from the
Whilst we determine how a client’s facility should run from a supply chain perspective, we are also optimising their property portfolio, so we are developing strategies that ensure that our customers aren’t burdened with a three-year lease tail.
business, and from here we assess how well the warehouse’s operational processes are working and put together recommendations on new processes, infrastructure and solutions.” When engaging external expertise, new innovative ideas come to the table. “Without the pressure of the day to day operations, we can come in and create a solution that doesn’t require our customers moving to a new property at a huge cost, but by developing the right supply chain solution for them within their existing infrastructure,” Allan says. As the supply chain team at JLL work across a number of different projects, they can bring innovative ideas to the project that those inhouse may not have considered. “We know 100’s of different ways to run a warehouse and how to apply them across a number of different industries. We bring the knowledge that our clients have of their specific industry and business and bring our knowledge of warehousing and property to develop the optimum solution. If you take one piece out of that puzzle, you will not have an optimised solution,” Allan concludes. ■
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MHD SUPPLY CHAIN
LINX INTERMODAL TERMINAL EXPANSION LINX Cargo Care Group has enabled a new arterial avenue for Australia’s grain farmers in the Central West with the recent expansion of services from its LINX Intermodal Terminal, part of the Enfield Intermodal Logistics Centre.
INX Cargo Care Group has enabled a new arterial avenue for Australia’s grain farmers in the Central West with the recent expansion of services from its LINX Intermodal Terminal, part of the Enfield Intermodal Logistics Centre. MHD finds out more. LINX Cargo Care Group is now partnering with CWLT Logistics to enable new services between Sydney and Bathurst, with Forbes next in line. As part of the Terminal’s expansion, LINX Cargo Care Group has opened on-site fumigation services to streamline the process from ports to rail and reduce traffic, while enabling aligned service provider ACFS Port Logistics (ACFS) to undertake rural and regional tailgate inspections at the terminal. “The LINX Intermodal Terminal is becoming a one-stop shop for Australia’s supply chain backbone, enabling greater sustainability, reduced traffic and improved rail access between the Central West and Sydney,” Carlo Cutinelli, Executive General Manager Customer & Business Development at LINX Cargo Care Group says. “The continued investment from
LINX Cargo Care Group as well as NSW Ports into the infrastructure both at the LINX Intermodal Terminal and the ports is paying off, with our farmers the first to benefit.” Grain farmers in the Central West will be the key early beneficiaries of the Sydney to Bathurst service and rural tailgate inspection services, with a quicker turnaround to the ports now possible. Driven by above-average rainfall between March and August, NSW is expected to lead a bumper harvest with winter crop production in the state predicted to rise 49 per cent above the 10-year average to 2019-20. Those farmers will now have a quicker path to the ports with LINX’s upgraded services and expanded Terminal operations. “This is further streamlining the supply chain between Australia’s heartland and key export markets, and it’s also reducing the impacts of traffic on regional roads and around the ports,” Carlo says. The NSW Government’s Freight and Ports Plan 2018-2023 highlighted a plan to increase the road to rail share
of rail freight at Port Botany to 28 per cent by 2021 and reduce the impact of truck movements around the ports. The expansion of capabilities at the LINX Intermodal Terminal will significantly reduce the impact of two-truck movements, as well as the overall number of trucks, around Botany. ACFS Managing Director and CEO, Arthur Tzaneros says customers in NSW’s central west will benefit from the overall productivity and capability of the LINX Intermodal Terminal. “With the support and alliance of many of the major shipping lines, upgrade and repair facilities, as well as the key strength of 3 x 900m tracks which allows for the service of 1.8m trains, this provides a distinct advantage in the LINX Intermodal Terminal service that will reap benefits for the Central West service, and its related customers,” Arthur says. “Furthermore, customers can now also receive an end-to-end service on imports, further streamlining the port to rail process on the port shuttle that is serviced via the dedicated freight line, while complying with all relevant import regulations.”
The LINX Intermodal Terminal is a one-stop shop for Australia’s supply chain backbone. 52 | MHD NOVEMBER 2020
MHD SUPPLY CHAIN SUSTAINABLE SUPPLY CHAIN LINX’s fumigation services for imported containers – which meet the stringent safety, health, agricultural and environmental requirements from a host of stakeholders including Department of Agriculture, Water and the Environment, SafeWork NSW and Border Control – will remove the number of trucks from suburban roads around Port Botany by reducing two-truck movement. “If a transport company needs to go and pick up a container from the port, they’ll have to pick it up from the port and then they will need to take it to a provider that does fumigation and generally they’re around Port Botany. Then they’ve got to drop the container off there and once the container is fumigated, vented, and cleared, they need to go back to that facility again, collect the container and then drop it off at their customer or bring it back to their depot and then deliver the container to the customer,” Carlo says. “With our service, we collect the container from the port, we bring it back to the LINX Intermodal Terminal, it goes
LINX Cargo Care Group has opened on-site fumigation services to streamline the process from ports to rail.
directly off our train into the fumigation area. It gets fumigated, vented, cleared and then we can then get that container and put it directly into our subtenant’s yard or our customer comes and collects the box. “We’re now able to clear up to 40 containers a day.” A tailgate inspection involves a visual inspection of the inside of a container to see if there are insects, dirt, or grass. If any of these are found that could indicate
the presence of pests which could affect agriculture, LINX now has the facilities in the LINX Intermodal Terminal for ACFS to be able to wash down a container. “Our customer doesn’t worry about the container until it’s placed into the transition bay for onsite customers. They send us the booking and the next thing they know is the containers are put into the terminal, cleared, and in the transition bay or the location where they can come and collect it,” Carlo says. ■
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MHD MATERIALS HANDLING
A PALLET BUILT FOR AUTOMATION As more warehouses become heavily automated, reducing downtime and increasing capabilities are crucial to success. MHD finds out more about a new pallet design to support the automated environment.
rganisations throughout Australia are continuing to invest in automated solutions across their supply chain operations. Grocery giants such as Woolworths and Coles have invested millions of dollars into automation and many other retailers and logistics providers are following suit. “Australia is undergoing major changes in its logistical and supply chain landscape and setting new standards for the future,” Alan Morgan, National Marketing Manager at Ozkor says. While the rented pallet is a warehouse staple it may not at first bring to mind scenes of highly advanced automation solutions. However, it still has a crucial role to play in any warehouse operation. “The standard Australian pallet is
likely to be a necessary requirement for many years to come. However, the nature of the materials used and the capabilities of that pallet to integrate easily into what appears to be increasing demand for complex automated warehouse systems (ASRS) cannot be ignored,” Alan says. A common problem with the average timber pallet in automated environments is that if the dimensions change, through wood or a nail spiking out, it can cause an entire operation to ground to a halt. “New systems design engineers and end users must anticipate potential downtimes brought about by damaged or poor-quality pallets,” Alan explains. A further issue when timber pallets block and jam up automated systems is that then requires maintenance personnel to climb in and fix the
Designed with dimensional stability in mind, the new pallet is manufactured so that it can take high tolerances with regards to impact and environment.
54 | MHD NOVEMBER 2020
issue, which can be very timely and dangerous, Alan says. A new plastic pallet, available for rental by Ozkor, is designed to remove this issue and has been launched for the Australian market. Designed with dimensional stability in mind, the new pallet is manufactured so that it can take high tolerances with regards to impact and environment. “These pallets have to be able to absorb a lot of impact, but they also need to go into extreme temperatures and take a lot of punishment that timber simply cannot deal with,” Alan says. Ozkor’s aim was to manufacture a plastic pallet that was well-suited to the automated warehouse. “This is a new direction for us, we manufacture plastic pallets already, but this is a new offering for the Australian market,” Alan says. When coupled with higher hygiene, safety and durability expectations in the food and pharmaceutical industries, a plastic pallet that can meet these demanding standards and rented at competitive rates was worth further investigation for Ozkor. With its expertise across the supply chain in providing pallet solutions, Ozkor was in a unique position to develop a plastic pallet that would meet the requirements of a highly automated warehouse and prevent costly downtime. Made to the highest standard, Ozkor is an Australian ISO 9001 certified company and leader in its field of expertise, specialising in the design development and manufacture of injection moulded plastic materials handling products such as plastic pallets designed to meet specific industrial applications. “The newly released PPX -1165
MHD MATERIALS HANDLING plastic rental pallet fulfils the specification requirements that exceed anything that is available on the market at present and can handle a load of 1,350kg in drive in racking without the need to use a steel framework,” Alan explains. Additionally, the pallet is manufactured using specialised virgin polypropylene copolymer materials so that it can operate in extreme temperatures ranging from freezer temperatures of -30C to as high as 50C in warehouse environments. Vertical side blocks are given extra protection against materials handling equipment damage by incorporating patented nylon inserts inside the block structure which enhances impact resistance in what is normally vulnerable areas. “The PPX is a heavy-duty workhorse designed for a long term reusable use along the dimensional lines of a standard timber pallet but by far exceeds the operational, hygiene and longevity of pallets traditionally used,” Alan says. ■
The PPX is a heavy-duty workhorse designed for a long term reusable use.
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ACCURACY THROUGH EMERGING TECHNOLOGIES Geoffrey Ramadan, Managing Director of Unique Micro Design shares how RFID solutions provide real-time and accurate tracking of assets for an industry that needs to rely on accurate data more than ever before.
echnology innovation comes from companies who are invested in emerging technologies and providing a solution that aims to succeed. Geoffrey Ramadan, Managing Director of Unique Micro Design (UMD), says through engineering IoT solutions, UMD has been more than just a supplier of hardware, software and services - the company aims to solve problems. RFID solutions provide real-time, accurate tracking of all kinds of assets. Using a combination of tags, readers, antennas and software, you can automate and streamline processes to improve efficiency, minimise losses and increase visibility. “We believe we are one of the leading RFID solution providers in Australia, and we certainly are the most technical,” Geoffrey says. UMD has developed RACE - RFID Advance Controller for Embedded Applications. Geoffrey says because UMD’s RACE systems are totally selfcontained, they make for rapid testing and deployment. “This is extremely important for businesses in the logistic and industrial sector who need RFID to automate and provide data visibility more than ever before,” he says. The UMD RFID Advance Controller for Embedded (RACE) architecture is an industrial computing platform. “It essentially controls all aspect of systems operation including RFID data capture, sensors integration, diagnostics, database and network communications,” Geoffrey says. In order to make strategic business decisions, real-time data is essential. Product trends can be measured over days or hours instead of just weeks or months. In a growing e-commerce landscape, 56 | MHD NOVEMBER 2020
insights given in real-time will unveil unidentified gaps and leverage business capability. “In the old days it would take time for the data to migrate from where it was generated and where it needed to be. RFID allows you to automate and deal with speed of collection,” Geoffrey says. He highlights that over the years, industry has had to face further compliance requirements when it comes to data in order to ensure safety and product quality. “To really achieve successful compliance to a high industry standard, you need to track, monitor and elevate,” Geoffrey says. RACE can be used either as a standalone solution or integrated into web services including UMD’s RACE Cloud services. “Without any other infrastructure you can conduct tests from the self-contained RACE capture point. You can optimise with a standalone solution and RACE can validate a system is working and monitor its performance,” Geoffrey says.
UMD’s recently partnered with a pharmaceutical client to assist with totes that are essentially packing boxes. The totes get shipped to various points and are returnable assets. “The client was having trouble with the totes getting lost, creating shortages. This proved to be a challenge to maintaining customer service as there were delays shipping products,” Geoffrey says. The pharmaceutical client trusted UMD to be the answer to their asset visibility problem. Through UMD’s RACE solutions, the client was able to track the location of the totes and dispatch them to customers in real time. “This process was achieved without human intervention and enhanced their operation productivity quite noticeably,” he says. “RFID is certainly coming of age. We’re up to 5th generation technology and with every generation, there are incremental improvements with performance. Greater opportunity and versatility have never been more readability available.” ■
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MHD PROPERTY FOCUS
STAYING CONNECTED Jonathan Mercuri and Andrew Chrapot from Colliers International tells MHD readers how the Bayswater Business Precinct is helping Victoria to unlock opportunities.
ndustrial property has been in the spotlight this year, as e-commerce orders boom like it’s Christmas every week, and the general public takes a much closer interest in supply chain and logistics management. A greater understanding as to how these facilities help underpin employment and economic growth in Australia has put the warehouse to the front and centre, and the opportunities are getting ready to further ignite. This month in MHD’s Property Focus, we’re looking at the Bayswater Business Precinct (BBP), a thriving business and employment community, located 30km east of Melbourne’s CBD. Home to over 5,000 businesses and supporting more than 30,000 local jobs, this precinct is well known across Australia and internationally for its skills in heavy vehicle, fibreglass, metals, 58 | MHD NOVEMBER 2020
Andrew Chrapot, Manager, Industrial at Colliers International. pharmaceuticals, medical technology, defence and construction. The BBP contributes over $14 billion to the local and Victorian economies. At Colliers, we have reviewed the opportunities for this precinct and are excited for its future. With limited industrial land left to develop, a strong and diversified workforce and record infrastructure spend in play, we continue to see businesses seeking to relocate to this hub. “The Bayswater Business Precinct is a great area: it’s got the established industrial product, ready and qualified local workforce and interest from
Jonathan Mercuri , Director of Industrial at Colliers International. investors both local and national. Our market data has only limited industrial facilities available, and we use this information to ensure our clients can find the right warehouse for their business,” Jonathan Mercuri, Director of Industrial at Colliers says.
A HUB OF INNOVATION AND EXCELLENCE The Bayswater Business Precinct has long been recognised for its tradition, technology and expertise in advanced and specialist manufacturing and local supply chains. It is well connected, with the precinct having access to
MHD PROPERTY FOCUS the metropolitan rail network and is also serviced directly by the Victorian Principal Freight Network. The area is home to a diversity of businesses, comprising small to medium size family businesses, to global multinationals including Siemens, GSK, Henkel and Kenworth PACCAR. With a greater strain on global supply chains, there has been an opportunity for local manufacturing to experience fresh growth. Established precincts like the BBP
Bayswater Business Precinct is a thriving business and employment community, located 30km east of Melbourne’s CBD. have been long known for their excellence in manufacturing. Kevin Ward, a local businessman commented, “Bayswater is known for having lots of different companies and businesses. If you ever want to look up anything to get made, you can just put it into Google and add the word ‘Bayswater’ at the end and 99 times out of 100, there’s someone in Bayswater making it. If you can’t get it made in Bayswater, you can’t get it made.”
EMPLOYMENT AREA The BBP is the second largest employment precinct east of the CBD, catering to over 30,000 jobs. It is an economic generator of huge significance, particularly as the road to recovery begins in Victoria. Having precincts like the BBP firing will be imperative to capturing future economic growth, especially considering that the BBP is responsible for 35 per cent of Melbourne East’s total exports.
TIGHTLY HELD, WITH LITTLE VACANCY
The Bayswater Business Precinct is a great area: it’s got the established industrial product, ready and qualified local workforce and interest from investors both local and national. Our market data has only limited industrial facilities available, and we use this information to ensure our clients can find the right warehouse for their business.
The industrial component of the BBP is approximately 790 hectares. The precinct represents about 30 per cent of Melbourne East’s industrially zoned land, the BBP is a mature industrial market which sees a total of 4 per cent of the total industrial zoned land left to be developed. Vacancy rates have continued to decline to sub 3 per cent levels for secondary buildings above 2,000sqm and sub 1.5 per cent for prime vacancies. During the midst of COVID-19, the Colliers team have continued to field a wide range of enquiries for industrial users seeking industrial space. “We’ve been working with businesses to ensure their industrial space continues to be fit for purpose, and field enquiries from a wide range of local and national investors who seek to invest into the region. We’ve continued to complete transactions during lockdown, and have creative marketing solutions for our clients unable to travel to inspect,” Andrew Chrapot, Manager, Industrial of Colliers says.
A BUSINESS COMMUNITY THAT GROWS TOGETHER The feel-good factor of helping other local businesses is something that the BBP is wellknown for. With some businesses having been in the precinct for decades, there is a community vibe that attracts economic activity and local employment. Scott Staples, the founder of Clock’It, a manufacturer of quality cabinetry commented, “My one business may engage with 10-15 other businesses in this immediate area. It gives the client the warm and fuzzy feeling to say, your one purchase with me has fed 20 families and that’s pretty super”.
EXPERT ADVICE ON HOW TO MAXIMISE THE POTENTIAL OF YOUR INDUSTRIAL PROPERTY Colliers International are proud to showcase this precinct’s rich history in business and enterprise, strong community values, economic prowess and its ability to move with the times. As trusted experts in this area, Colliers is delighted to provide our experience, knowledge and expertise to ensure the BBP and all of its stakeholders continue to thrive and create a better pathway through providing the right framework, structure and information. To learn more about the Bayswater Business Precinct, use the QR code below to view the video. And remember – if it can’t get made in Bayswater, it can’t get made. ■ MHD NOVEMBER 2020 | 59
MHD THE LAST WORD
FUELLING TRANSPORT WITH INNOVATION BY SAL MILICI, HEAD OF BORDER AND BIOSECURITY AT FREIGHT & TRADE ALLIANCE & AUSTRALIAN PEAK SHIPPERS ASSOCIATION
hen tasked with writing this article I fast found myself sliding down a fascinating rabbit hole of discovery. Solar fuels, coal gasification, and steam reforming were but a few of the topics I stumbled upon. What is an electrolyser and why didn’t I pay more attention in science class? My interest in this subject in part has its genesis when Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) actively engaged with the Climate Change Authority as a part of their new research report, Economic recovery, resilience and prosperity after the coronavirus. The report identifies measures that will contribute to a ‘triple-win’ stimulus package in a low-emissions world offering a once-in-a-lifetime opportunity to not only jumpstart an economic recovery but also set up Australia to prosper for generations to come. Some of the many exciting developments in this sector and of most interest to MHD Supply Chain readers is around using renewable fuels to power the transport sector. The passenger motor vehicle is better suited to the electric vehicle – I mean who doesn’t want a Tesla replete with “ludicrous mode”. Heavy transport isn’t suited to this, so a renewable fuel is required solution; and all signs point to hydrogen. Recently energy giant Shell revealed plans to back hydrogen fuel cells on the road to International Maritime Organisations goal to reduce greenhouse gas emissions by at least 50% by 2050 “We believe liquid hydrogen to be advantaged over other potential zeroemissions fuels for shipping, therefore giving a higher likelihood of success,” it said in its latest report, ‘Decarbonising Shipping: Setting Shell’s Course.’ 60 | MHD NOVEMBER 2020
In response to the industry wide goals of at least 50 per cent, leading container ship operator Maersk, has gone one better and announced a target to be 100 per cent free of CO2 emissions by 2050. To bring this all these aspirational targets to fruition using hydrogen it needs to be created using renewable methods. This is where some big sky thinking to create the necessary scale is needed. Chief Scientist Alan Finkel is on the money when he suggests Australia should have a target of 700% renewables. This would allow the surplus renewable energy to be used in a number of ways. One would be storing it in batteries (be they of the Tesla Big Battery lithium ion kind or perhaps Snowy 2.0 pumped hydro kind) to provide grid stability and to ameliorate the intermittent nature of the energy sources Exporting the surplus power directly such as tech billionaire’s Mike CannonBrookes ambitious Sun Cable project – which involves piping electricity direct from a vast cattle station size solar farm in the Northern Territory to Singapore The third and possibly most exciting and lucrative is using renewable energy to manufacture hydrogen. This is achieved by using renewable energy to power the electrolysis of water; all that is required is water; a big(the bigger the better) electrolyser and a shedload of electricity. Australia has access to plenty of water (its not required to be potable) and exponentially growing levels of electricity from renewable energy. The big (and cost competitive) electrolyser is what is missing. Enter the Australian Renewable Energy Agency and their $70 million Renewable Hydrogen Deployment Funding. ARENA aims to support two or more shortlisted large-scale renewable hydrogen projects that
involve deploying 10 MW or larger electrolysers, made up of various end uses including transport, gas injection, renewable ammonia production, power and industrial use. However, hydrogen is difficult and expensive to store in bulk (needing cryogenic tanks or high-pressure cylinders). To solve this challenge, we simply add a dash of nitrogen to create ammonia. In this case Green Ammonia. Yes, that smelly toxic chemical used when cleaning around the house. But Green Ammonia has several benefits over its Green Hydrogen cousin. Its energy density by volume is nearly double and it is much easier to ship. Not more than a month ago Australia and Germany signed a joint feasibility study to investigate the supply chain between the two countries on hydrogen produced from renewable energy. This study specifically mentions hydrogen including its “carriers such as Ammonia” and is backed up by serious funding; Germany has indicated over $A16 billion of its COVID-19 stimulus package is for the development of a hydrogen industry and building international supply chains – with countries like Australia. The march toward sustainable fuels to feed the worlds transport task is happening as we speak. As I write this this the awarding of an engineering contract for the Arrowsmith Hydrogen Project near Dongara in Western Australia was just announced. Located 320 kilometres north of Pert the plant will produce 25 tonnes of Green Hydrogen per day when it commences production in 2022. It is happening. Considering the many geographical and topographical benefits our continent enjoys - The export and wealth creation opportunities for Australia are limitless. In many ways it is up to us as a nation to determine how far (or behind ) of the curve we are. ■
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MHD FROM THE ALC
POWERING OUT OF A RECESSION
The urgency that delivered for Australian communities throughout the crisis must now be maintained to help Australia trade out of a deep recession.
he Federal Government commitment of $1.5bn to revitalise Australian manufacturing through the COVID-19 recovery is welcome and timely. One of the positive consequences of the pandemic is a fundamental rethink of global supply chains. Where businesses once valued price above all else, the world is starting to value certainty of delivery and quality even more highly. That is a significant opportunity for a nation like Australia where quality has been at the heart of the brand for decades. To be competitive Australian industries must be fully supported by a globally competitive transport and logistics sector. This demands smarter investment in policy, infrastructure, and technology. Today the supply chain industry brings in $103 billion annually – but its size and success often disguise significant lost opportunity. The absence of toilet paper from supermarket shelves early in the COVID-19 crisis galvanised government
62 | MHD NOVEMBER 2020
action to reduce impediments to the movement of freight. Governments worked with industry to keep freight moving despite the supply chain being identified as an obvious vector for the disease. Sweeping policy advances included universal agreement that all freight be considered essential, the prioritisation of freight movement with ‘waive through’ at borders, the suspension of curfews nation-wide, and ultimately the national agreement on a freight movement protocol. The urgency and attention that delivered for Australian communities throughout the crisis must now be maintained and accelerated to help Australia trade out of a deep recession. Australia is on the cusp of a bumper grain harvest with the wettest winter since 2016 expected to see national grain production increase 60 per cent and wheat production rise by 91 per cent. This at a time when the winter crop across much of Europe has been hit by drought and frost – causing a year on year fall of 10%. France, the largest grain exporter in the EU, is reporting a
25% decrease in wheat compared to the 2019 harvest. These figures should be cause for celebration among Australian farmers and exporters as they cash in on demand in the Asia-Pacific. But Australia’s last bumper grain season offers a warning. In the of 2016-17 season farmers had major problems getting grain from Victoria’s Mallee and the Wimmera to the ports of Geelong, Portland and Melbourne. More broadly, Deloitte analysts suggest Australia’s advantages could be undermined by inadequate infrastructure. Transport (including receival charges, rail freight and port charges) is the largest single cost in the domestic grain supply chain. Australian rail freight remains hamstrung by infrastructure limitations when compared with rivals such as Canada. The infrastructure and policy limitations are perpetuated by a lack of foresight and cooperative endeavour across industry and governments with the agricultural industry absent from most serious supply chain conversations.
MHD FROM THE ALC Supply chain challenges are also noteworthy in mining with key iron ore and coal deposits at risk of supply chain failure. Australia’s largest export, iron ore, worth $100bn in annual export value, remains significantly exposed to cyclone-linked flooding. Tropical Cyclone Damien struck the Pilbara region back in February cutting six million tonnes from Rio Tinto’s projected 2020 output. The Queensland coal network faces similar vulnerabilities. The Bureau of Meteorology is predicting increased potential for cyclones and flooding in the next six months. Governments and the private sector need to work together to ensure resilience in these supply chains in support of central planks of today’s economy. Much is already underway. There has been significant progress on the mighty 1700km Inland Rail project linking the ports of Melbourne and Brisbane via country New South Wales, on track for delivery by 2025. Inland Rail is designed for highly efficient double-stacked trains up to 1.8km in length, each of which will carry the same volume of freight as 110 B-double trucks. But there is a snag. While the rail connections to the intermodals outside Melbourne and Brisbane are easily managed, the final kilometres to the ports are yet to be finalised. As governments look to postpandemic recovery, these last pieces of the puzzle must be priorities. The $5.3 billion Western Sydney Airport is another huge infrastructure investment with potential to put advanced Australian manufacturing and high-end agricultural
To be competitive Australian industries must be fully supported by a globally competitive transport and logistics sector. This demands smarter investment in policy, infrastructure, and technology.
products within 12 flying hours of two thirds of the world’s middle class. Again though, delivery is not assured, particularly as the focus today appears to be on passengers rather than freight. The advances in major infrastructure investment are being matched by increasing uptake of technology. This includes early investment in a National Freight Data Hub that has potential to significantly boost the productivity and safety of domestic supply chains. Crucially, governments and industry are also investing in technology to guarantee the provenance of Australian goods in global markets. These last six months have been tough for all Australians, but disruptions to supply chains are presenting Australia with global opportunity. Australia’s exports are in high demand and there is important recognition of, and investment in, a resurgent Australian manufacturing industry just when the world is looking for certainty of delivery and quality ahead of price. We need to bank the policy advances made during the pandemic and bank on infrastructure and technology advances to quite literally deliver a brighter future for all Australians. ■
Australia is on the cusp of a bumper grain harvest. MHD NOVEMBER 2020 | 63
MHD FROM ASCI Ninety-four per cent of supply chain leaders surveyed sited at least one unethical issue in their supply chain.
COVID-19 PANDEMIC ADDS TO ETHICAL ISSUES IN GLOBAL SUPPLY CHAINS
n Global Ethics Day last month, the Professional Accreditation Body for Supply Chain Management urged Australian business leaders to carefully heed its poll results and encourage supply chain staff to be Registered under its Scheme for free access to an Ethics Management Program. Supply chain leaders participated in an anonymous poll last month for Global Ethics Day. 94 per cent sited at least one unethical issue in their supply chain when presented with: • COVID-19 (68 per cent) • Misconduct (19 per cent) • Black Market (16 per cent) • Bribery (13 per cent) • Modern slavery (9 per cent) • Discrimination (6 per cent) • Child labour (9 per cent) • Food fraud (9 per cent) According to Alexandra Riha, President, Australasian Supply Chain Institute, COVID-19 has exacerbated 64 | MHD NOVEMBER 2020
pre-existing unethical issues, leaving supply chain managers feeling overwhelmed by responsibilities for their end to end global supply chains. “Of the 60 per cent who have access to resources such as experts; supplier visibility; external assistance; and legal advice; 16 per cent said the resources did not allow appropriate confidentiality to protect them. “As the professional accreditation body for supply chain management, ASCI offers those who are Registered under its Professional Accreditation Scheme access to an Ethics Management Program, including a Code of Conduct, for confidential third party resources to be well informed and help escalate unethical behaviour in supply chains,” she said. In line with the Global Ethics Day theme “Ethics In Action” Ms Riha encourages business leaders to empower their supply chain staff to be Registered under the ASCI Professional Accreditation Scheme so that they can
be protected and have free access to the Ethics Management Program. ASCI’s Professional Accreditation Scheme provides industry-wide standards and consistency in the profession. This Professional Accreditation Scheme, through which individuals can register as Professionals, Practitioners and Associates, provides recognition of professional achievement against a globally aligned, industry accepted set of standards, on par with other professional disciplines. ■
MHD FROM ASCI REGISTRATION ASCI’s Professional Accreditation Scheme provides industry-wide standards and consistency in the profession. This Professional Accreditation Scheme, through which individuals can register as Professionals, Practitioners and Associates, provides recognition of professional achievement against a globally aligned, industry accepted set of standards, on par with other professional disciplines. There are nine Registrations under the Professional Accreditation Scheme: 1. R egistered Professional (PrSCM)* 2. R egistered Operations Practitioner (RegPracOps) 3. R egistered Procurement Practitioner (RegPractProc) 4. R egistered Logistics Practitioner (RegPracLog) 5. R egistered ILS Practitioner (RegPracILS) 6. R egistered Operations Associate (RegAssocOps) 7. R egistered Procurement Associate
(RegAssocProc) 8. R egistered Logistics Associate (RegAssocLog) 9. R egistered ILS Associate (RegAssocILS) Visit the ASCI website for your free Provisional Assessment Of Eligibility For Registration at https://www.asci.org.au/ registration-process
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ASCI’s accreditation provides industry-wide standards and consistency in the profession.
MHD NOVEMBER 2020 | 65
MHD PEOPLE ON THE MOVE
PEOPLE ON THE MOVE A monthly wrap up of the latest appointments in the supply chain, materials handling and logistics industry.
NEW SENIOR CONSULTANT FOR THREESIXTY Dan Palombella joins supply chain consultancy ThreeSixty as Senior Consultant – Project Services. Dan is a supply chain and logistics professional with over 16 years’ experience in the industry. He has spent the last eight years at a global third-party logistics provider implementing warehouse management systems in industry verticals
NEW CO-CHAIR FOR NATIONAL GS1 TRACEABILITY ADVISORY GROUP
NEW NATIONAL HEAD OF INDUSTRIAL LOGISTICS AT KNIGHT FRANK
David McNeil from InfraBuild and the Australian Logistics Council joins Ram Akella from Woolworths as a Co-Chair of the multi-sector Traceability Advisory Group.
Knight Frank Australia has made a key appointment to its industrial team, with Darren Benson coming on board as
The National GS1 Traceability Advisory Group (NGTAG) was established earlier this year by GS1 Australia, the global not-
National Head of Industrial Logistics. Darren has nearly 20 years of industrial property experience, during which time he has held both leadership and
including healthcare, technology, retail, fashion, government, FMCG and automotive.
for-profit organisation, which is the leading provider of standards and solutions.
agency roles within Australia and throughout the Asia Pacific region.
NEW GM FOR UTENANT
QUBE APPOINTS NEW DIRECTOR TO THE BOARD
COLES WELCOMES NEW STATE GENERAL MANAGER
Qube has announced the appointment of Nicole Hollows to the board of directors of Qube Holdings. Nicole has over 20 years’ experience in the resources sector
Coles Group has announced Claire Lauber as new State General Manager for Victoria and Tasmania who will be
Dave Jenkins will join uTenant as General Manager, where he will oversee all aspects of the business as well as assist Founders Matt Sampson and Kyle Rogers with client engagement, user experience and account management. Prior to joining uTenant, Dave spent five years at recruitment specialist Michael Page.
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in a number of senior managerial roles across both the public and private sectors, including in mining, utilities and rail. She is currently an independent non-executive Chairman of Jameson Resources Limited and also an independent non-executive director of Downer EDI Limited.
responsible for the operation of more than 230 Coles supermarkets. Claire was previously General Manager of Supermarkets in Victoria and Tasmania for Woolworths and has been welcomed by competing supermarket giant, Coles.
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