DECEMBER 2015
OFFICIAL MAGAZINE OF THE REFRIGERATED WAREHOUSE & TRANSPORT ASSOCIATION OF AUSTRALIA LTD
Special Energy Edition New RWTA board member Tracking energy consumption costs NSW member energy audit grant Improve your bottom line COR Policy procedures International news 125th IARW convention
COLDºRUNNING I DECEMBER 2015 1
Christmas Rush is about to commence – have you thought about your labour plan? Rush Group are happy to discuss your needs at a time convenient to you. • Recruitment Specialists – Warehousing and Logistics • National Network of Local Branches • Specialists in Labour Hire, Permanent & Project Recruitment
CALL: 1800 735 055 Or contact Michael Goralski 2 DECEMBER 2015 I COLDºRUNNING
0419 320 510
mgoralski@rushgroup.com.au
[ MESSAGE FROM EXECUTIVE OFFICER ]
Refrigerated Warehouse & Transport Association of Australia Ltd The Refrigerated Warehouse & Transport Association of Australia Ltd (RWTA) represents both the warehousing and transport sectors involved in the storage, distribution and transportation of temperature controlled products in what is known as the Australian Cold Chain.
Refrigerated Warehouse and Transport Association of Australia Ltd PO Box 5 South Melbourne VIC 3205 Phone: 03 8620 2802 Fax: 03 9645 6445 Email: info@rwta.com.au Website: www.rwta.com.au ABN 63 061 391 179 ACN 061 391 179
BOARD OF DIRECTORS EXECUTIVE Chairman David O’Brien Vice Chairman Jeff Hogarth Immediate Past Chairman Paul Fleiszig Company Secretary Russell Sturzaker CORPORATE DIRECTORS Jeff Hogarth – Americold Rod McQueen – Montague Gabor Hilton – Oxford Cold Storage Phillip Whitecross – Rand Refrigerated Logistics Greg Holt – Swire Cold Storage STATE DIVISION DIRECTORS NSW Division – Russell Sturzaker VIC Division – Greg Lucas QLD Division – Rachel Corcoran SA Division – Rick Skewes WA Division – Russell Sturzaker TAS Division – Russell Sturzaker ACT Division – Russell Sturzaker NT Division – Russell Sturzaker
STAFF Executive Officer Russell Sturzaker Administration Officer Anne Thornton COLD RUNNING Editor Russell Sturzaker Email info@rwta.com.au Production Michael De Lai Copy Deadline Next Issue 1st March for March 2016 Issue Advertising rsturzaker@rwta.com.au Individual Contributors Digital Lumens, Luke Hurley – Climate Friendly, Mike Wood – LATUS Logistics, Russell Sturzaker - RWTA. All material appearing in Cold Running magazine is copyright. Reproduction in whole or in part is strictly forbidden without prior written consent. Freelance contributions and submissions are welcomed by this magazine. No responsibility is accepted for unsolicited manuscripts, photographs, etc. The opinions expressed by contributors are not necessarily those of Four Wheel Drive Victoria. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. The publisher reserves the right to omit or alter any article or advertisement. Advertisers agree to indemnify the publisher for all damages or liabilities arising from the published material.
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Telephone: 0408 431 241
Like probably most of you, I can’t believe that Christmas is apon us, and we are at the end of another year. It seems only yesterday that I was being interviewed for the role of Executive Officer of the RWTA and here I am writing to you some fifteen months later. 2015 has been a year of consolidation and review, as we look at how we operate as an association, and where we have been progressively working on the implementation of our Strategic Plan. Board changes during the year have seen the departure of Peter Quinn from the position of Immediate Past Chairman, having been replaced by Paul Fleiszig following the appointment of David O’Brien as your new Chairman. In this issue of Cold Running we welcome Queensland State Chair, Rachel Corcoran (Americold) to the board, as Queensland State Representative, and we look forward to working with Rachel over the coming years. Our feature article looks at “ How tracking and managing energy consumption can drive real cost savings in your organisation”, and we would recommend that if your company is not yet involved in the RWTA’ s Quarterly Energy Survey, then now is the time to contact the office and register your interest to also be part of this industry benchmarking initiative which has been successfully running for the past couple of years. Also for our NSW members, the RWTA have entered into an agreement with the NSW Office of Environment & Heritage that aims to assist members to identify, implement and verify the big energy savings opportunities on their site. These energy audits typically cost between $10,000 and $20,000, but through this agreement they have been capped at $5,000. Negotiations are currently under way to also provide these benefits to other states. Plans are currently being finalized for our 2016 National Conference and Expo which is to be held on the Gold Coast with the final date to be announced shortly. Following a very successful, and well received conference this year in Adelaide, we have put together some great new initiatives for our 2016 event. During the year we have commenced a number of new initiatives, not the least being our new website, the new RWTA Member Portal along with online event registration. These new benefits have been added to enable us to better communicate with you our members, so please log in and have a look at the member portal, and we would love to her what you think, and receive any suggestions as to what else you would like to have added to the sites. Finally, I would like to thank Anne Thornton our Administration Officer, for her help and support during the year, and on behalf of myself and the RWTA Board, we would like to wish you a Merry Christmas and a Happy and Prosperous New Year, and look forward to meeting you at your next State Event in 2016. Russell Sturzaker Executive Officer
In this issue 3 Message from the Chief Executive Officer 4 RWTA News 5 RWTA Website / Portal Promotion 6 - 15 Feature Article: How Tracking/Managing Energy Consumption Driving Cost Savings 16 - 17 NSW Members - Enhance your competitiveness & productivity through energy efficiency audits 19 How Energy Productivity can improve the bottom line 20 NSW Government Leases TransGrid Zero Emissions for South Australia by 2050 21 Increased Risk to South Australia’s Electricity Reliability Reforms to the WA Reserve Capacity Mechanism 22 - 23 Policy Procedures – Chain of Responsibility 26 - 27 International News - Cold Connection 29 - 32 International Events 33 Contacts COLDºRUNNING I DECEMBER 2015 3
[ RWTA NEWS ]
New RWTA Director & Queensland Division Representative appointed to the RWTA Board The Refrigerated Warehouse and Transport Association of Australia Ltd (RWTA) wish to announce the appointment of a New Director and Queensland Divison Representative to the RWTA Board. Rachel Corcoran (Americold) On 30th November 2015, and in accordance with the Articles of Association of the RWTA, Rachel Corcoran - Vice President - Human Resources Americold, was appointed as a Director of the RWTA, and QLD State Representative to the RWTA Board. On behalf of all members we would like to congratulate Rachel on her new appointment.
THE TEAM AT THE RWTA WANT TO HEAR FROM
YOU!
4 DECEMBER 2015 I COLDºRUNNING
New RWTA Director & QLD Division Representativeto the RWTA Board Rachel Corcoran (Americold)
Whether your business is celebrating a milestone anniversary or you’ve had a recent business win, we want to hear about it and we want to share it with your fellow members. The RWTA wants to celebrate its members’ successes! To showcase your business win or milestone in Cold Running, call the RWTA’s Executive Officer, Russell Sturzaker on 03 8620 2802 or email: rsturzaker@rwta.com.au
Visit the NEW RWTA website
www.rwta.com.au
Over the past few months, our team have been working hard to deliver a new website with improved design, functionality and navigation. Our goal was to create a must-visit digital destination, so we have made it easier for you to find your way around the website while also being viewable on all portable devices. Along with the launch of our new website we have moved “Cold Running” our quarterly newsletter into digital format as an eMagazine and this is now viewable at www.rwta.com. au/magazine/ . This new feature now means that you can read “Cold Running” on your favourite electronic device. Please take a moment to visit the new website at www.rwta.com.au and let us know what you think.
NEW RWTA Member Portal Along with the launch of the new website we have also launched a Member Portal where you can now register for events and update your personal details. If you are a member of a State Executive Committee or RWTA Sub Committee you can now access previous meeting documentation (including agenda’s and minutes). You can also search Upcoming Events, visit the eLearning section and Member Directory, or view our Online Resources section.
There is literally a world of information on hand for you as an RWTA Member, so please take a moment to visit the new member portal at www.rwta-membership.com.au/ If you have any questions regarding either the New Website or the Member Portal please contact us on - Telephone: (03) 8620 2802. Thank you for your support, and we trust you will enjoy these new member benefits.
COLDºRUNNING I DECEMBER 2015 5
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HOW TRACKING/MANAGING ENERGY CONSUMPTION How Tracking/Managing Energy DRIVES COST Consumption DrivesSAVINGS Real Cost Savings
R E S E A R C H B R I E F
INTRODUCTION The spacious, expansive nature of the warehouse or distribution center (DC) makes it a prime candidate for managing energy consumption and cutting costs, helping companies achieve their corporate sustainability and environmental goals. While most organizations acknowledge the potential benefits of reducing energy consumption, and a good portion measure usage across various systems, numerous obstacles stand between these firms and the path to significant cost savings, many of them internal hurdles.
®
figure
For most warehouses, lighting and heating consume the biggest chunks of energy, with lighting alone comprising 60 percent of the typical facility’s energy consumption, according to E Source. These systems present significant opportunities for manufacturers and distributors that want to minimize energy costs. And some have already turned to more energyefficient systems -- smart lighting, motion and daylight sensors, and other technology-based solutions to help reduce energy consumption. For example, using intelligent LED lighting systems, a leading manufacturer of castings and machined products was able to reduce its monthly lighting bill by 85 percent. An aerospace distribution center took a similar step and has been able to shave its lighting energy usage by 90 percent in its 172,000-square-foot corporate design center.
1
The importance and awareness of energy usage Extremely important
26%
Very important
42%
Somewhat important
25%
Not very/ Not at all important
29%
Fully aware
51%
Have some understanding
16% 7%
4%
Importance of energy usage data
Awareness of energy usage
Yet many others continue to pay hefty bills. Either unaware of the options, or unwilling to invest the time and money into these efforts, companies are missing out on the significant savings that many of their counterparts are already tapping into, and the sustainability benefits that are increasingly important to customers and public markets. In a recent study conducted by Peerless Research Group (PRG) on behalf of Modern Materials Handling, Logistics Management, and Supply Chain Management Review, 230 managers involved with initiatives related to warehouse and distribution center operations shared opinions on the importance of monitoring energy consumption, sustainability, and environmental issues in their facilities. They also provided insights into their current and planned energy use and efficiency strategies. The managers who participated in the survey work for companies whose facilities average 330,000 square feet in size, with one out of five working for companies whose total square footage of all of warehouse/distribution centers exceeds 500,000 square feet. Most individuals surveyed work at locations where the primary activity is manufacturing, distribution, or warehousing.
Not very knowledgeable Have no idea
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Top Priority: Understanding Energy Consumption Understanding energy usage is a fundamental requirement for the majority of survey responders, as nearly all (93 percent) of those surveyed consider consumption levels to be “critically important.” Yet, more than two-thirds admit that they have only some, very limited, or no knowledge at all about their facilities’ energy usage, showing a disconnect between high-level priorities and operational systems. Fewer than one in three claims to be well informed about power consumption at their sites. (See Figure 1) figure
2
Operations tracking/planning to track energy usage Will be tracking usage in 24 months
Now 58%
72%
Will be implementing within 2 years 14% Not gauging 28%
figure
To further illustrate the challenge, 42 percent of managers are not tracking energy consumption at their facilities. So, it’s not surprising that a high percentage of respondents have no visibility into consumption – compared to the 58 percent of companies that do track these metrics. And while the percentage of those who’ll be using some type of tracking system is expected to rise during the next few years – with 14 percent planning to implement a monitoring program – more than one out of four (28 percent) will still not be employing any strategy for evaluating usage two years from now. (See Figure 2) How Firms Are Tracking Energy Use Some organizations have a detailed understanding of their energy consumption, but many are only reviewing usage on a broad level and not tracking the factors that truly drive energy utilization. For example, few are analyzing their energy usage on a granular level, including consumption by systems or energy intensity on a per-square-foot basis. This suggests a lack of organizational commitment to assessing energy utilization – a problem that, in turn, can obscure key information, including exactly which machines, equipment, processes or infrastructure are consuming the most energy. (See Figure 3)
3
How operations are tracking energy usage Total energy used
88%
Contributions by system (lighting, HVAC, lift truck charging, process equipment, non-process loads)
26%
Energy intensity per square foot
14%
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figure
4
Systems from which energy data are collected 74% 59% 43%
Lighting
HVAC
Process machinery
Currently, most companies collect data on lighting, HVAC and process machinery using monthly utility bills and meter readings to understand usage information and charges. The data is also used to measure consumption and to further examine productivity; to determine cost center chargebacks; and to employ guidelines to help attain sustainability goals. (See Figure 4) figure
17%
7%
Non-process loads
Other
In most cases, operations, facility, and plant managers are tasked with reviewing and using energy consumption data. Interestingly, in the survey, four out of 10 managers have no visibility into that information. Facilities, plant, and environmental managers could also benefit from such visibility (but generally don’t have access to it). (See Figure 5)
5
Managers who use energy consumption data/ Managers who should have access to data but don’t 40%
Should have access but don’t
28%
Use data
31% 52%
28%
55%
22%
40% 27%
18% 23% 13%
Operations manager
Facility manager
Plant manager
Engineering Corporate sustainability safety, health and environment manager manager
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IT
8% 4%
Other
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6
Issues/Challenges with tracking energy consumption 54%
Cost of metering solution
35%
Labor
4% 26%
figure
Other Not a priority
7
Benefits gained by gauging energy usage 89%
Reduced operating costs
Improved labor management Upgraded throughput
25% 22%
figure
Lowering operating costs is seen as the primary benefit of tracking energy consumption, yet many companies are not verifying usage levels and subsequent costs. This prevents them from realizing additional benefits, including improved process efficiencies and more effectual labor management. (See Figure 7) For organizations that want to improve efficiency, lighting is the highest priority (79 percent), followed by fans (37 percent), cooling (34 percent), and heating (33 percent) systems. These solutions represent areas of the warehouse where energy and subsequent cost savings can be best quantified. (See Figure 8)
29%
Efficient inventory processing
The Challenge: Prioritizing and Tracking the Data From the survey, one out of four organizations does not identify tracking energy as a priority. These organizations are not capitalizing on potential moneysaving opportunities, and are missing out on the chance to reap significant cost savings and other benefits. (See Figure 6)
8
Building materials and systems replaced/planning to replace with energy efficient solutions 79%
37%
34%
33%
28% 21%
Lighting
Fans
Cooling systems
Heating
Electrical equipment
Insulation
4 COLDºRUNNING I DECEMBER 2015 9
PROGRESSIVE ELECTRICITY RETAILER PROVIDES BIG SAVINGS TO BUSINESSES • Do you spend more than $50K per annum on electricity? • Do you operate pumps or have a cold storage facility? • Do you have a stand-by generator? • Would you like to reduce electricity costs? For many businesses, electricity represents a major operating cost where machinery, pumps and refrigeration plant consume significant amounts of electricity. Short of reducing production, most businesses would appear to have little control over the cost of their electricity. One innovative company has taken advantage of a new way of purchasing electricity, allowing businesses to control energy costs, and significantly reduce the energy component of their electricity bills up to 25%! According to Business Development Manager, Antony Denahy, PG Energy is a specialised electricity retailer, offering wholesale market access to large electricity users within the National Electricity Market (NEM). “Traditionally, most businesses purchase their electricity from an energy retailer via a standard retail contract. The retail contract usually contains standard peak, off-peak and shoulder rates. In order for retailers to supply their retail customers with electricity, retailers purchase the electricity from the variable price wholesale electricity market. The cost is at the prevailing spot rate and then is charged on to the customer at fixed retail contract rate,” Anthony said. With the dramatic rise in fixed rate offers many customers are now seeing, the wholesale market is something that should be considered…many large Australian businesses purchase wholesale, now your business can as well. “PG Energy has recognised the opportunity to save customers money by providing direct access to the wholesale market via its Managed Pool Purchasing product. Our sophisticated management tools and tailored energy contracts provide innovative solutions with realistic returns,” explains Anthony. The company offers a unique end-to-end management solution that includes a comprehensive 2-way notification and automated remotely controlled load management system. “The solution keeps sites informed of market price events, this allows load to be managed at the right time, i.e. to shed load and or the best time to use load (low prices) - an essential element for purchasing from the wholesale market or starting up any onsite generation,” he said. PG Energy provides energy agreements for both fixed and direct wholesale pool purchasing consumers. Options include benefits tailored to suit the operation of the particular site, for example, load shedding capability and/or partially fixing load at prevailing prices. To see if we can help you, please contact Anthony direct on 0417 080 535 or email your enquiry through direct at Anthony.denahy@pgenergy.com.au
For more information contact PG Energy on 1300 08 06 08 or by emailing info@pgenergy.com.au www.pgenergy.com.au 10 DECEMBER 2015 I COLDºRUNNING
Printed with permission of Digital Lumens.
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figure
9
Factors considered highly important when evaluating energy efficient solutions for warehouses and DCs 66%
Ongoing maintenance costs
66%
Total cost of ownership
59%
Initial cost of solutions
53%
Ease of installation and maintenance
50%
Ease of ongoing management
50%
Support of corporate/environmental responsibility goals
50%
Degree to which solutions are energy efficient (or potential energy savings $/kWh and/or %)
47%
Ease of integration into our current environment
43%
Extent to which we have to re-engineer our warehouse/DC to accommodate energy efficient solutions
42%
Solutions are “smart” or “intelligent”
Financial Considerations When Evaluating Energy Savings Solutions When evaluating energy efficient solutions for use in warehouses and DCs, costs associated with implementation and maintenance, cost accountabilities (Total Cost of Ownership or TCO), and ease of installation and maintenance are highlighted as key evaluation criteria. Product attributes like being “energy efficient” or “smart” rank further down the list. (See Figure 9)
figure
In many organizations, measuring the value of an investment and determining a reasonable payback time frame (i.e., return on investment or ROI) are important initiatives. According to our survey, however, some companies simply don’t view energy solutions as assets. While managers tend to focus on ROI (66 percent) or payback (54 percent), one out of three have a 5-year TCO plan – a trend that paints energy spend as a long-term investment versus a potential cost-savings area. (See Figure 10)
10
Investment returns on energy systems and solutions 86%
Quantify their energy systems investments (net)
66%
ROI (% return on your financial investment)
54%
Payback (time until investment is repaid) 5-year total cost of ownership (purchase cost, annual energy costs, annual maintenance costs) Do not account for their systems
36% 14% 5 COLDºRUNNING I DECEMBER 2015 11
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figure
11
Companies capitalizing on energy reduction rewards programs Yes, there’s a short term incentive program 11% Yes, there’s a long term incentive program 9% Yes, we have both short term as well as long term programs 15% No. We do not have an energy reduction rewards program 65%
While cost savings has been cited as a priority for most companies, only one out of three companies we surveyed offer incentive plans to stimulate energy conservation practices. These companies are missing out on significant cost savings that can reach as high as 90 percent of a facility’s total monthly lighting consumption. (See Figure 11) Utility companies offer rebates, incentive programs and/or interest-free financing to drive energy efficiency in their territory, yet fewer than than one-half of survey respondents are taking advantage of these opportunities. This is a missed opportunity for those companies that don’t view energy consumption as a potential cost-savings area. (See Figure 12) figure
Departments Involved in Decisions Related to Energy Savings Solutions When it comes to decisions regarding the evaluation and implementation of energysaving solutions, various departments are involved. This can present a problem – particularly when the objectives and goals of disparate groups are not aligned. Having many individuals with different disciplines, interests, priorities, and even budgets presents the all-too-familiar “too many cooks in the kitchen” issue. With a dedicated champion, even the most well-meaning team members can have a counterproductive effect on the evaluation process.
12
Companies participating in provider rebate programs Yes 48% No 27% Don’t know 25%
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figure
13
Departments involved in identifying, buying, implementing and/or maintaining energy efficiency projects 63%
57% 44%
41% 30% 19% 11%
Facilities management
Operations
Warehouse management
Engineering
IT
EH&S
and sense or interact with their internal states or the external environment, IoT promises to create new opportunities for facility managers who tap into the trend. According to the survey, just one out of five managers is very familiar with the idea of IoT, while almost one-half (44 percent) have either only heard of IoT or are not aware of it at all. But, the IoT is gaining understanding, with about one out of three (37 percent) acknowledging that they are “somewhat familiar” with the concept. (See Figure 14)
Charged with installing, executing, and maintaining implementations on an enterprisewide basis, IT departments play a key role in energy-saving initiatives. In fact, two-thirds of those we surveyed say they regularly interact with their IT departments when employing energy-efficiency projects. (See Figure 13) The Internet of Things (IoT) Recognition and adoption of the Internet of Things (IoT) concept is still in the early stages. Defined as the network of physical objects that contain embedded technology to communicate figure
Purchasing
14
Awareness of the Internet of Things 50%
36%
40% 30%
25%
20%
20%
19%
10% 0%
Very familiar
Somewhat familiar
Have only heard of it but not sure what it’s about
Never heard of it
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15
Adoption of Internet of Things solutions 37%
7% Currently being implemented
21%
10% We are now planning an IoT strategy
Talks have We looked begun but at this but that’s all that’s determined it’s been done not right for us at the present time
To date, few companies (7 percent) have either implemented or are in the planning stages (10 percent) of an IoT model while the large majority (61 percent) has either determined that IoT at the present time is neither a solution for their operation nor something that’s being considered. Another 20 percent just aren’t thinking about IoT, which confirms that the market is in the early adoption stages and that decision-makers need to be educated on the applications and benefits of an IoT strategy. (See Figure 15) figure
16
Characteristics an IoT solution should possess 60% 47% 35%
34% 6%
Easy to use/ intuitive software
Secure
Able to communicate with existing IoT systems
Mobile access
Other
1% No plans at the present
Other
Don’t know
Regardless of current IoT awareness and adoption rates, survey respondents agree that the systems and applications for IoT implementation need to be easy to use, secure, compatible with their existing infrastructure, and supportive of mobile solutions. (See Figure 16) Summary Despite high levels of energy consumption by warehouses and DCs, and the potential for significant cost savings, most companies continue to operate with a “business as usual” mindset when it comes to energy savings. And while seven out of 10 companies are either “fully aware” or “have some understanding” of energy consumption and the related costs, the granularity of this knowledge (or, a lack thereof) reveals opportunities for improvement. The survey data also highlights the need for better alignment of goals, processes, and programs at the corporate level. For example, more respondents rated TCO and ongoing maintenance costs as being highly important over initial solution costs when considering energy efficiency solutions. Yet, just 36 percent evaluate TCO; instead, the majority focus on ROI (66 percent) and payback (54 percent). This suggests that few organizations take the long-term view on lower energy consumption – a view reinforced by the fact that 65 percent of respondents said that their organizations “do not have any incentive program tied to energy reduction goals.”
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19%
5%
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Compounding the issues above is the fact that there are a lot of different “cooks” or stakeholders in the “kitchen,” attempting to reduce energy usage but making few inroads toward this goal. And while awareness of IoT is growing, the solutions associate with it will obviously need to be easier to use and intuitive before warehouse and DC managers will even consider them. “The data shows that the materials handling industry has organizations distributed across the energy-efficiency spectrum, with highperformers already locking in savings and driving down operational costs,” said Judd Aschenbrand, Director of Research, Peerless Research Group. “Those who have not implemented programs have opportunities to lead their organizations to build new efficiency initiatives, with the additional potential to deploy IoT-based systems that will offer value far beyond energy efficiency.”
The findings are based on information collected from 230 top materials handling, logistics, and supply chain managers. Respondents are predominantly executive management (26 percent), warehouse and operations management (28 percent), plant management (14 percent), and engineering management (13 percent). Survey respondents came from a wide range of industries, including food and beverage, automotive equipment, chemicals and pharmaceuticals, industrial equipment, and electronics. All company sizes are wellrepresented in the study, with the average firm having $908 million in 2015 revenues. One out of four (23 percent) are employed at locations with 500 or more employees.
About Digital Lumens Digital Lumens is a global supplier of enterprise-scale intelligent LED lighting systems for leading commercial and industrial customers, delivering 90% energy savings and a platform for building intelligence. The system includes LightRules® lighting management software for maximum control and efficiency, and a broad portfolio of intelligent high bay and linear LED fixtures with embedded occupancy and daylight sensors to provide high-quality light when and where needed.
Research Methodology This research was conducted by Peerless Research Group on behalf of Logistics Management, Modern Materials Handling, and Supply Chain Management Review magazines for Digital Lumens. Executed in September/ October 2015, this study was administered online among subscribers to Logistics Management, Modern Materials Handling, and Supply Chain Management Review magazines.
With deployments of 200 million square feet (20 million square meters) of coverage across 40 countries, Digital Lumens brings the tangible benefits of Internet of Things (IoT) to commercial and industrial lighting environments. For more information, please visit www.digitallumens.com.
Respondents were prequalified for their involvement in decisions regarding their companies’ warehouse and/or distribution center operations.
Contact Information: Allison Parker, Director of Marketing, aparker@digitallumens.com -- 617.723.1200 ®
Printed with permission of Digital Lumens.
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NSW Members - Enhance your competitiveness and productivity through energy efficiency audits Energy efficiency not only delivers cost savings – it can also help improve your profit margins by unlocking greater productivity and driving competitive advantage. RWTA has entered into an agreement with the NSW Office of Environment and Heritage (OEH) that aims to assist NSW members to identify, implement and verify the big energy savings opportunities on their site. These energy audits typically cost between $10,000 and $20,000 but is capped at $5,000 for RWTA members. Members interested in an audit will be connected with an OEH-approved energy specialist experienced in working with our sector. In addition to this, OEH has a support package for energy efficiency that includes: • Up to $10,000 for technical expertise (such as engineering design) to support implementation of your project • Up to $15,000 funding assistance for measurement and verification services to ensure that your project is delivering you the expected savings • Advice to access finance for your project including the NSW Energy Savings Scheme • Subsidised energy efficiency training courses to upskill your personnel More than 18,000 businesses have been assisted by OEH’s Energy Efficient Business team, saving them more than $368 million in power over ten years. Businesses also report improved productivity, more engaged staff, and reduced equipment maintenance through these projects. For more information, visit http://www.environment. nsw.gov.au/business/energy-saver.htm or to take action, contact OEH by emailing energy.saver@environment. nsw.gov.au or calling 1300 361 967 (ask for the Energy Efficient Business team). (Please remember to mention that you are an RWTA member to take advantage of the special energy audit offer).
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Case Study: It will come as no surprise to RWTA members that being efficient with your energy use can deliver savings off your operating costs. But organisations that have taken action on energy efficiency are often pleased to discover the significant productivity benefits that can come with better energy use. These productivity benefits can include increased throughput, reduced equipment maintenance (and associated downtime) and even deferred need for new plant. The first step to achieving this often begins with an energy audit, where an energy specialist goes through your business to identify the big energy saving opportunities unique to your site. It may be that you already have an energy saving project in mind, so in this instance, they’ll be able to provide you with the guidance and expertise to get your project off the ground. Thanks to an agreement between RWTA and the NSW Office of Environment and Heritage (OEH), RWTA members are able to access energy audits – which typically cost between $15,000 and $25,000 – at a capped cost of just $5,000. Members interested in an audit will be connected with an OEH-approved energy specialist who is well-versed in your sector. What some businesses have achieved
Swire Cold Storage Swire has used the energy audit accessed through OEH to help justify capital expenditure for variable speed drive (VSD) technology to be added to its refrigeration plant compressors. Installing VSDs has enabled Swire’s warehouse in Lurnea, Sydney, to reduce its energy consumption by more than 15 per cent.
First Creek Winemaking Services Family-owned First Creek crafts wines for 26 individual customers and bottles over a million cases for more than 100 labels. The Hunter Valley-based business has slashed more than $125,000 off their power bills, and gained productivity benefits from a new refrigeration plant and lighting upgrades. Along with reduced maintenance requirements at crucial operating times, the company has been able to increase output, enabling it to meet production targets for larger clients to enter new markets.
Funding assistance for projects In addition to a capped cost for energy audits for RWTA members, OEH has a support package for energy efficiency that includes: • Up to $10,000 for technical expertise (such as engineering design) to support implementation of your project •
Up to $15,000 funding assistance for measurement and verification services to ensure that your project is delivering you the expected savings
part of the energy audit process, OEH has also developed a comprehensive technology guide designed to help you achieve savings of up to 46 per cent off one of the largest energy users in your business. The Industrial Refrigeration Technology Report (http://www.environment.nsw. gov.au/business/industrial-refrigeration. htm) outlines 15 opportunities to increase your plant’s energy efficiency, including capital costs and payback periods. • For more information on what support is available, visit http://www.environment.nsw.gov. au/business/energy-saver.htm or to take action, contact OEH by emailing energy.saver@environment. nsw.gov.au or calling 1300 361 967 (ask for the Energy Efficient Business team). (Please remember to mention that you are an RWTA member to take advantage of the special energy audit offer)
• Advice to access finance for your project including the NSW Energy Savings Scheme • Subsidised energy efficiency training courses to upskill your personnel. OEH’s Energy Efficient Business team has helped more than 18,000 businesses to date, saving them more than $368 million in power over ten years. Technology guide on industrial refrigeration While efficiency opportunities with industrial refrigeration are explored as COLDºRUNNING I DECEMBER 2015 17
18 DECEMBER 2015 I COLDºRUNNING
[ ARTICLE ]
How Energy Productivity can improve the bottom line In a highly competitive and energy intensive industry, energy productivity in refrigerated warehouses is an important tool in improving the bottom line. Energy productivity makes up one of the three main elements of the Government’s energy vision in its Energy White Paper, released in April. The other two are competition and investment. Not to be confused with energy efficiency alone, the most common indicator of energy productivity is the amount of economic output per unit of energy input: the higher the value the better. This is a fine equation for economists, but how many economists have managed a refrigerated warehouse? Energy Productivity can be more practically understood as “four pillars”. Optimise your procurement strategy, invest in making your energy consuming appliances more energy efficient, utilise renewable energy where there is a solid business case, and engage with your staff to encourage and reward energy efficient behaviour. Procurement Strategy You may already have a broker who will procure energy pricing on your
behalf, or have an in-house energy specialist. An energy broker, or inhouse energy specialist, will constantly monitor market dynamics to identify the best possible energy purchase opportunities. For example winter and summer are peak demand periods and it is unwise to purchase during this time. Contract terms may also be negotiated such as moving from 14 day payment periods to 30 day payment periods. Network and market charges are other components of your electricity bill which need to be addressed. Check to see if you are on the most optimal network tariff for your load profile and check your bill each month to ensure there are no billing mistakes made by your retailer. KVA/KW demand is also a key component of your network charges and should be monitored. Some networks will reset demand charges monthly while others will charge you on the highest demand level reached for 12 months moving forward and will only allow a reset after that time, if you submit a written request. Climate Friendly helped one customer save $2,000 per month by pointing this out. Metering charges may also be negotiated with your retailer and, if you go through a broker, they can add $3,000 to $4,000 p.a. to your metering costs that you may not have noticed.
Retailers may also allow you to lock in your mandatory renewable energy certificates to mitigate volatility. Energy Efficiency There would be very few arguments with the fact that a facility’s refrigeration system can be the biggest component of your high energy bills. There are numerous ways to ensure you are optimising its energy efficiency: fine tuning refrigeration control systems, improving piping Insulation, reducing humidity, upgrading to LED Lighting, under floor heating, installing variable frequency drives on evaporator and condensing fans, and installing variable speed drives on compressor and conveyor motors. You may also wish to consider upgrades to the building itself such as insulation improvements, reflective roof paint & high speed insulated doors. Renewable Energy Even the most efficient refrigerated warehouse uses large amounts of electricity from the grid. Taking advantage of renewable energy is a great way to hedge against electricity market volatility and further reduce costs. by Luke Hurley
Vaughan Constructions has been our preferred supplier since 1994 and has been our partners in erecting 88,000m2 of cold storage buildings. Gabor Hilton Engineering Manager Oxford Cold Storage Company
vaughans.com.au COLD STORAGE EXPERTS
COLDºRUNNING I DECEMBER 2015 19
[ ARTICLE ]
NSW Government Leases TransGrid The NSW government has announced the long term lease of the state’s electricity transmission company, TransGrid. Under the terms of the deal a consortium led by Spark Infrastructure and Hastings Funds Management will take 100% control of TransGrid under a 99 year lease agreement. This represents the NSW Government’s first disposal of network assets and is expected to be followed by partial leases of the Ausgrid and Endeavour Energy distribution businesses during 2016. The final distribution business, Essential Energy will be retained by the Government. What this means for electricity customers TransGrid is the monopoly owner and operator of the high voltage transmission network in NSW. This network is used to transmit electricity long distances from the major generation centres to the major load centres and also more generally to remote areas of the state. As a monopoly the prices that TransGrid can charge for its services are regulated by
the Australian Energy Regulator (AER). In April of this year the AER released its final determination on TransGrid’s pricing for the period until 30th June 2018. Under this determination the amount that TransGrid can charge to its customers was reduced by 15% in real terms in financial year 2014/15 and by 3% in real terms for the following three years. This determination has been implemented and will not be affected by the recently announced sale of TransGrid. TransGrid’s customers are the NSW and ACT distribution networks of Ausgrid, Endeavour Energy, Essential Energy and ActewAGL. These distribution networks pass on to the retail companies the cost of purchasing transmission services from TransGrid, which in turn pass it on to you. Because transmission charges are “ground into” the distribution network businesses distribution tariffs you will not see a separate line item for them on your monthly invoice. Rather, they are included within the other individual line items shown under the network costs category. The year on year reductions in TransGrid’s charges described further
Zero Emissions for South Australia by 2050 The South Australian Premier, Jay Weatherill recently committed to a new target of zero net emissions for the state by 2050 effectively bringing the state to carbon neutrality. The announcement was made following the release of the recommendations of the South Australian Low Carbon Economy Expert Panel (“Panel”) comprising former federal Liberal leader John Hewson, ClimateWorks’ Anna Skarbek, and ANU’s Frank Jotzo. The Panel’s report identifies potential for South Australia to be a low carbon electricity powerhouse and a net exporter of renewable energy. Abundant renewable electricity combined with its rich resource base and existing 20 DECEMBER 2015 I COLDºRUNNING
manufacturing expertise mean that the State could be a natural base for energy intensive mining and manufacturing industries in a low carbon world.
above are similar to the reductions passed down by the AER to the network businesses in its final determination on distribution network charges made in April of this year. Whilst the distribution pricing determination is currently under dispute and may be revised, there has been no dispute lodged against the TransGrid determination which will stand. Whilst transmission costs are not insignificant, they are much lower than distribution costs. Total allowable revenue to be recovered from customers by TransGrid for transmission services in the four year period ending June 2018 is $3,306M. Total allowable revenue for distribution services over the same period is $15,236M not including the transmission component recoverable by TransGrid. Should private ownership allow TransGrid to reduce its operating and capital expense costs it is possible that the AER will further reduce TransGrid’s prices during the next price setting period commencing July 2018. However, in making its pricing determinations the AER considers very many factors including allowing the shareholders to make a reasonable rate of return on investment, the size of the regulatory asset base and the reasonableness of operating and capital expenditure estimates the combination of which will influence the final outcome of the next pricing determination. would not seek to implement a State based emissions trading scheme instead favouring a national scheme. “We believe this is the most practical approach to this question and will not seek to implement an ETS at the State level.” Mr Hunter said. The Panel states South Australia’s per capita emissions are significantly lower than the average Australian per capita emissions. South Australia’s per capita emissions are 18tCO2e, as compared with 24tCO2e at the national level.
The Panel also identified one particular opportunity to reduce South Australia’s emissions profile quickly, by implementing a State-based emissions trading scheme (ETS) linked to California’s ETS. California has the world’s most well established sub-national ETS and is thought to be actively interested in linking its scheme to other sub-national schemes the Panel said. However the Minister for Climate Change Ian Hunter Source: Department of Environment, State and Territory Inventories 2013; and ABS population data. said the Government
[ ARTICLE ]
Increased Risk to South Australia’s Electricity Reliability A report by Deloitte Access Economics says South Australia faces higher electricity prices and increased reliability risk from being at the leading edge of integrating intermittent renewable energy into the grid. The report titled “Energy markets and the implications of renewables – South Australian case study” was commissioned by the Energy Supply Association of Australia and released 26 November 2015. South Australia’s renewable resources are in the form of wind and the sun. Resources described as “intermittent” i.e., they are only available when the wind is blowing or the sun is shining. The Deloitte report says whilst there are other regions that have more
intermittent renewables, there are strong interconnection to neighbouring regions which facilitate the import or export of electricity equivalent to their peak demand. By contrast, South Australia’s interconnection with Victoria is equivalent to only about 23 per cent of its peak demand. It is the intermittent nature of this renewable electricity that creates challenges for systems and markets that were designed around dispatchable plant such as hydro, fossil fuels and nuclear. These conventional plant types also have characteristics that allow them to contribute to the stability of the grid, including keeping frequency levels consistent and being able to restart the system after a major blackout. Solar is not designed to contribute in this way, and while wind can (in limited circumstances) assist, its intermittency constrains its use for grid stability the report states.
Reforms to the WA Reserve Capacity Mechanism There is currently a large excess of capacity within the WA Wholesale Electricity Market which is imposing a substantial cost on electricity consumers. The cost of this excess in the 2016-17 Capacity Year is estimated at around $116 million. The Position Paper on Reforms to the Reserve Capacity Mechanism (“Position Paper”), released 3 December 2015 by the WA Public Utilities Office says there is an excess of capacity of 1,061 megawatts in excess of the Reserve Capacity Requirement. Given the Independent Market Operator’s latest demand outlook, a large quantity of excess capacity may be sustained into the mid-2020s. The Position paper states that the persistence of substantial excess capacity reveals a fundamental problem with the current form of the Reserve Capacity Mechanism (RCM).
The result is electricity consumers are paying a large cost for excess capacity that delivers little to no value in delivering the target reliability of the electricity system. Without reform, the current RCM in its current form is unlikely to motivate decisions that will return the market to an acceptable level of balance of load and capacity the Position paper states. A review of the WA electricity market is therefore considering reforms that will provide a means for capacity pricing to be determined through a market process, and for this pricing mechanism to be introduced in an orderly manner that reduce the current excessive cost to electricity consumers but avoids undue financial disruption of market participants. The intent is to provide stronger price signals for efficient entry and exit of capacity according to the needs of the market and ensuring that the system security and reliability objectives are achieved at least cost for consumers. The proposed reforms to the RCM outlined in the Position Paper have four principal elements.
Deloitte says that with further intermittent renewable investment likely, higher prices are expected in SA as the market price will be increasingly set by higher cost generation, such as gas-fired power plants. The Deloitte report found there are a number of areas that require further investigation, namely: - The net market benefits of further electricity interconnection upgrades between Victoria and SA; - Estimating the saturation point of both rooftop solar, wind and large-scale solar in isolation and in combination; - Understanding the implications of network constraints outside of South Australia that may be affecting the ability to transport wind energy out of the state; - Investigating if there is a case for a new market in capacity, noting that this would entail a fundamental change in market demand; and - Investigating the scope for efficient demand response that could allow a portion of demand to follow supply rather than vice versa, noting this would be a long-term development. 1. Adoption of an auction as the basis for procurement of capacity, with the first auction to occur when the market has reached an acceptable level of balance. 2. Transition arrangements for a period for the introduction of the auction that will involve maintaining the existing administered price mechanism but with a steeper pricing curve and a differential treatment of demand side management. 3. Implementation of measures to harmonise demand side management availability requirements with requirements for conventional generators, for both the transitional arrangements and under the capacity auction. 4. Stronger commercial incentives for all forms of capacity to be made available for dispatch. These reforms to the RCM will deliver a more efficient capacity procurement process over the longer term and a more valuereflective capacity cost to electricity consumers in the short to medium term. The transition period will facilitate an orderly adjustment in the capacity balance and the auction mechanism. COLDºRUNNING I DECEMBER 2015 21
[ ARTICLE ]
Chain of Responsibility Policy Procedures We have seen many examples of Policies and Procedures over the years. Ranging enormously in terms of quality and content. For example: • Company “A”, completed a Gap Analysis of their Chain of Responsibility and were told they had 140 fail points within their system, they were duly horrified. The Board decided to get expert help in fixing the problem. They engaged their company lawyers to write Policies & Procedures for Chain of Responsibility. Some months later the P&P’s were complete, all 140 of them. The Policies & Procedures although legally exact, did not reflect the actual operation and were written in a way that the average person could not understand. In summary, useless in the operation and in fact a similar case for an SA company was prosecuted for similar issues. •
Company “B”, needed Policies & Procedures and the operations guy had a mate who had set it up in his business. He borrowed the material, changed the logo, business name and address and put it up as their own. All the sections were there and it looked good, but again was useless for the business as it did not reflect his business in any way shape or form.
•
Company “C” set up their own, and used their in house OH&S person to write them. They were concise and reflected the business, however, there was no “How to” it was all about who is accountable for what.
So looking at the above cases, how are your Policies & Procedures, will they fulfill what they should be doing? Definition of Policies & Procedures Initially let me clarify what the two components of a Policy & Procedure are: The definition of a Policy is: “A course of action, guiding principle, considered expedient, prudent, or advantageous” Basically WHAT you intend to do The definition of a Procedure is: “A fixed, step-by-step sequence of activities or actions (with definite start and end points) that must be followed in the same order to correctly perform a task.” Basically HOW you will do it With the advent of major cooking shows on TV a cooking example is quite good to explain a Policy & Procedure. If you think of the “name” of the cake with its brief description as the Policy. Then all the ingredients, by actual weight and volume, all the equipment you will need to make it happen. Then the detailed instructions of what to mix when and how to mix it and what consistency. What size baking tin to use and how to line it, oven temperature and time, how to test it to see if it’s finished. Then to top it off a picture of what it should look like when complete. Basically it’s a clear set of instructions with KPI’s that can be picked up by another person who has never 22 DECEMBER 2015 I COLDºRUNNING
see the recipe before and they can produce a comparable item. Could the same be said for your Policies & Procedures? Five Key Points for Policies & Procedures Therefore when developing Policies & Procedures there are 5 areas which we need to focus on to prevent major pitfalls: 1. Level of Detail: The Policy & Procedures themselves, to what level of detail should they get to? If the Policy & Procedures fail to have enough detail, then their impact may be too loose and not cover the legislation effectively. If they are too big then they become a voluminous epistle that is never read let alone used. 2. How Prescriptive: Risk of making the Policies & Procedures to specific and restrictive which means that if a situation deviates from what we have prescribed then workers will become paralysed as they will not be able to make decisions on how to handle a situation. This may lead to the logistics function not occurring, but more likely that the function will be executed in an uncontrolled manner leaving the company exposed under Chain of Responsibility. 3. Scope of Coverage: Not taking into account all the relevant groups. Under new legislation a person engaged to complete a task on a site (including a truck) will be deemed as a “worker”, regardless of how they are engaged, be they a direct employee, a subcontractor, through a labour hire agency, via a 3rd or 4th party. 4. Intent vs Action: Policy & Procedures of intent not action; this habit is common with many companies and they develop Policy & Procedures that looks great on the bookshelf and has significant version control and indexing but in reality bears no resemblance to what actually happens within the business. This means staff will continue to complete tasks in the same way they always have and pay no attention to the company Policy & Procedures. 5. Your Own: Copying a Policy & Procedures system from a “mate” or elsewhere in a business group, completing a “search and replace” on the business name and logos, and they have instant Policy & Procedures for their business. 6. Simplicity and Understandable: During audits we have often seen volume after volume of Policy & Procedures that are; over complicated, copied or rewritten and become a compliance hindrance to the business and often costly to prepare and repair. Basic rules – “Keep it simple – Reflect the action” Preparing effective Policy & Procedures A few golden rules for Policy & Procedures: 1. Know how your business “actually” works before you start. We are not looking for what should happen more what the business is really doing, so don’t get the manager to write this, get the front line operators to do it. 2. You must be able to “map” your business processes so that they can be followed by a “trained monkey” in the event
[ ARTICLE ] that the normal operator is unavailable at short notice.
Reasonable Steps Defence and Policy & Procedures
3. Compare your actual processes to the C&E/CoR regulations and see where the holes are. 4. Fix up the holes in your business.
The most common question I get asked with the Chain of Responsibility legislation is “can you give me a list of Reasonable Steps that I can follow. Of the course the answer is “No” it all depends what is reasonable at the time. Policies & Procedures as mentioned above are heavily tied into “Reasonable Steps”. As such I will try to answer the “Reasonable Steps” question through Policies & Procedures.
5. Write concise P&P to cover what you actually do. 6. Train “workers” on the actual application of Policy & Procedures. 7. Supervise or validate that they actually do the work as per the Policy & Procedures. DO NOT get dragged in to developing a complicated Policy & Procedures system: KEEP IT SIMPLE, KEEP IT LEGAL Bear in mind that regardless of how fantastic the bookshelf system looks, if authorities embark on an investigation due to offences they will not care about what the Policy & Procedures says, what they will be looking for is what actually happened leading up to the offence. If the Policy & Procedures you have developed are not capable of controlling the compliance issues then they will be immediately discounted. Procedure Steps
Who Should do it
• Review your methods at the operational level, find out what you “really do”
Operation level staff
• Map them out in simple process pictures, don’t go overboard on the words
Operation level staff
• Make sure you have got it down right by asking drivers and operational staff to review them
Drivers, Forklift, Leading hands etc.
• Compare what you do to what is required under the legislation
Advisors
Having said that the “procedure” the how to, we continually see procedures that are so vague the person who they apply to would have no idea in how to apply them. So here are some tips; always start from the right end and work backwards! That is start at the end point (e.g. Truck or Dock) and work backwards to the office. When talking Reasonable Steps you need to remember that although good Policies & Procedures go a long way to keep you compliant, it is still a matter of how those Policies & Procedures are implemented that really makes up Reasonable Steps. With that in mind follow the logic process below in getting your Policy & Procedures in place: Policy – Develop a Policy that all in the organisation have “buy-in”. 1. Procedure – Develop Procedures that are like a cake recipe.
• Modify what you really do to make Operations/Advisors sure its legal
2. Training – Train all those affected not only in the technical aspects of what they cover but also what the procedure is. 3. Implement – Make sure that the P&P is fully implemented and not just sitting on a shelf. 4. Application – Check back in the workplace to ensure that the P&P is actually being applied and not ignored. 5. Continuous Improvement – go back to #1 and fine tune all points in this list. Daunting task so far you would agree, so how do you simplify this? There is a very quick way to simplify all the Policies & Procedures and how they convert into Reasonable Steps.
• Write your Procedure in simple terms and use diagrams and pictures rather than big words
Operations
• Get drivers and operational staff to review it
Drivers, Forklift,
• Finalise your procedure
Operations/Advisors
• Now generate your Policy from your procedure
Operations/ Management
• Write your Policy and publish it.
Operations/ Management
Safety in Numbers – if your business is one of many who do things in a certain way, then this could be taken as a Reasonable Step.
Operations/ HR
In summary, a Reasonable Step, is what was appropriate on the day, and did the business and its workers do as much as they could to predict and prevent a breach of road law.
Now the BIG step! • Train everyone how to use and apply the Policy & Procedure
You now have a Policy & Procedure that actually works at an operational level and not a beautiful looking but operationally useless document. The above sequence may well be contrary to most people’s thinking as it starts from the bottom up. The reason is logical, it gets the operational level personnel involved and contributing to what they will need to apply in their day to day operation and the process is written from what “actually happens” not a theory of “what should happen”. In summary if you are NOT comfortable in getting to this level of accuracy with your Policy & Procedures, get some help, it will be cheaper and quicker in the long run.
The answer is easy…… Codes of Practice! There are several codes of practice for many sectors of industry and many in the pipe line. The benefit of being part of a Code of Practice is twofold: You do not have to reinvent the wheel, all the framework has been done and you merely need to fill in the relevant company specific content.
INFLUENCE=CONTROL=RESPONSIBILITY=LIABILITY Doing nothing is not an option For more details on Policies & Procedures, Reasonable Steps & Codes of Practice contact mike@latus.com.au or call 1300 008 386
Mike Wood Managing Director – LATUS Logistics Risk Specialists COLDºRUNNING I DECEMBER 2015 23
[ MEMBER NEWS ]
Dematic Announces Agreement to Acquire Reddwerks, Leading Provider of Warehouse Execution Software Dematic, a leading global supplier of integrated automated technology, software and services to optimise the supply chain, announced today an agreement to acquire Reddwerks Corporation, a leading innovator of Warehouse Execution Software (WES) that provides customers with real-time decision engines to optimise material and information flow in the supply chain. The acquisition, which is subject to approval by Reddwerks’ shareholders and other customary closing conditions, will enhance Dematic’s existing software suite and deliver additional value to Dematic customer solutions. Ulf Henriksson, Dematic President and CEO stated, “The global supply chain needs to be flexible, responsive and agile, empowered to deliver goods to consumers on demand. Retailers and manufacturers need to be positioned to respond to this dynamic demand. The only way to effectively achieve responsive order fulfillment is through an automated supply chain, powered by comprehensive real-time software. Traditional batch processing cannot sufficiently respond to either the
operational variability or the speed required.” Henriksson continued, “The union of Dematic and Reddwerks will enable customers to accommodate everchanging business requirements by enhancing automation technologies with ‘On Demand’ software solutions that dynamically optimise warehouse and distribution functions.” Henriksson added, “We are delighted with the prospect of Reddwerks joining the Dematic family, which will allow us to offer the marketplace a unique and unprecedented combination of automation and software that maximises employee efficiency and minimises customer investment. Reddwerks’ proprietary Distribution Science TM methodology, founded on operations research, and modular product suite offer customers a new level of performance and efficiency in today’s competitive supply chain.” Headquartered in Austin, Texas, Reddwerks provides solutions for seamless order fulfilment that help drive customer return on assets. The company offers innovation, analysis and software solutions that result in demonstrable value to both new and existing supply chain facilities. Upon completion of the acquisition, Reddwerks will operate as a subsidiary of Dematic under the tradename Dematic Reddwerks and will continue to deliver the highest levels of quality solutions and services to Dematic and Dematic Reddwerks customers.
“Dematic is the industry leader in software and automation technologies for modern ecommerce, apparel, retail, and general merchandise supply chains. We are excited about the prospect of integrating our platform and our operational research-driven approach into Dematic offerings and delivering value to customers globally,” said Alex Ramirez, CEO, Reddwerks. For further information about Dematic please visit www.dematic.com.au About Dematic Dematic is a leading supplier of integrated automated technology, software and services to optimise the supply chain. Dematic employs over 5,000 skilled logistics professionals to serve its customers globally, with engineering centres and manufacturing facilities located across the globe. Dematic has implemented more than 4,500 integrated systems for a customer base that includes small, medium and large companies doing business in a variety of market sectors. To learn more please visit www.dematic.com.au.
Cold Chain Order Fulfilment The Cold Chain industry continues to be challenged with economical and productive distribution and delivery of cold and/or frozen products. Dematic can help. Learn more about Dematic full pallet and case picking order fulfilment solutions for cold chain environments. Visit www.dematic.com.au/cold-chain, or call 02 9486 5555 today.
www.dematic.com.au/cold-chain
24 DECEMBER 2015 I COLDºRUNNING
We Optimise Your Supply Chain
[ MEMBER NEWS ]
Dematic Launches Dematic iQ Software to Deliver Real-Time Logistics Solutions Dematic, a leading global supplier of automated fulfilment solutions for the warehouse and distribution centre (DC), has launched Dematic iQ, its next generation software platform that goes beyond traditional warehouse control systems into knowledgebased logistics. The software platform provides businesses with the information they need to quickly adapt and optimise their supply chain fulfilment operations on a real-time basis, whether on-site or remote. The software optimises operations using advanced analytics to gain more value from warehouse and enterprise data. “Today’s order fulfilment environment poses a number of challenges including the need for increased productivity and accuracy, and the pressure to cut costs. Dematic iQ provides our customers with decision guidance from one easyto-use logistics software platform,” said Pas Tomasiello, Dematic’s Director of Integrated Systems. “It helps logistics managers take charge of their businesses processes and operations in order to make sustainable improvements that deliver a competitive edge.” Developed as a scalable and modular platform that will accommodate manual processes through to highly automated systems, Dematic iQ addresses DC business processes. Dematic iQ has the ability to integrate with existing operations and business systems to provide the transparency and full insight needed to make realtime decisions on resource allocation. “In recognition of the vast amounts of data Australian and New Zealand businesses now have access to, Dematic is positioned to help these businesses leverage their information to optimise their operations,” said Pas Tomasiello. “I am excited that Dematic iQ continues to provide our customers
with a real-time, knowledgedriven fulfilment platform that helps them make better business decisions.” Dematic iQ Benefits: • Broadens warehouse control footprint • Improves quality, accuracy and tracking of equipment and orders • Reduces cycle time, cost, and storage footprint • Maximises visibility, efficiency, and decision-making ability • Enables common services, resource sharing, and experience across the platform • Maximises profit throughout the order fulfilment lifecycle • Improves on-time shipments • Maximises existing IT investment For more information about Dematic, visit http://www.dematic.com/en-au/ services/software or contact Carole McCormick at carole.mccormick@dematic.com or +61 2 9486 5463.
comprehensive range of intelligent warehouse logistics and materials handling solutions. With a global knowledge network of more than 4,000 skilled logistics professionals, Dematic is able to provide customers with a unique perspective in world-class materials handling solution design. Our commitment to solution development, combined with engineering centers and manufacturing plants in North America, Europe, and Asia Pacific, ensures Dematic has the range and capability to provide reliable, flexible, cost-effective solutions globally. Our successful track record has led to the development and implementation of more than 5,000 integrated systems for a customer base that includes small, medium, and large companies doing business in a variety of market sectors. Dematic generates a global business volume of approximately $1.5 billion. To learn more please visit www.dematic.com.au.
About Dematic Dematic is a global engineering company that provides a COLDºRUNNING I DECEMBER 2015 25
[ INTERNATIONAL NEWS ]
Expert in Ammonia Contamination, Food Toxicology Joins WFLO Scientific Advisory Council On January 1, 2016 the World Food Logistics Organization (WFLO) will officially welcome a new member to its prestigious Scientific Advisory Council. In October, the WFLO Board of Directors voted to confirm the nomination of Dr. Faris Karim Hussain of Kansas State University. Dr. Karim will be sharing expertise on ammonia contamination, and food toxicology. Dr. Karim has extensive experience in the area of food science. He obtained two post graduate degrees in food science from Kansas State University, where he is currently the manager of the Food Chemistry Lab. At Kansas State University, Karim developed and contributed to numerous projects involving food safety, food analysis, and food toxicology. Karim has contributed to numerous publications educational posters related to the ammonia contamination of food, and food toxicology. In 2014, the honor society for food science and technology, Phi Tau Sigma, awarded Dr. Karim the first place prize in the Toxicology Division Research Competition. In addition to his research and teaching experience with Kansas State University, Dr. Karim has several years of experience with quality control of food products in the private sector. This entry was posted in Association News & Updates, Food Safety & Audits and tagged ammonia contamination, food safety, food toxicology, Kansas State University, WFLO Scientific Advisory Council on December 9, 2015 by Laura Poko.
26 DECEMBER 2015 I COLDºRUNNING
19th European Cold Chain Conference The Global Cold Chain Alliance (GCCA) will host the 19 European Cold Chain Conference in Amsterdam, 6-8 March 2016. Over 100 high level professionals representing the temperature controlled supply chain industry including cold storage, transportation, logistics, distribution and construction are expected to attend. Don’t miss this opportunity to share real-life experiences and challenges with your peers and colleagues from leading companies across Europe and around the world. Knowledge Transfer: Educational programming will provide you with a better understanding of industry trends, challenges, opportunities, solutions and best practices. The sessions will focus on four topic areas including –
Energy & Refrigeration Operational Excellence Administration & Human Resources Innovation & Trends
Networking: Making connections with your fellow delegates is an important aspect of any conference experience that is why this event has ample opportunity for you to meet, connect/re-connect with professionals who share your goals and your challenges. Sponsorship/Exhibit: Increase your companies brand and your visibility at the event, through sponsorship and/or exhibiting. Each opportunity has been customized to spotlight your company throughout the entire event.
REGISTER NOW
Prepare for comprehensive cold chain employee training in 2016 With 2015 coming to a close, many supervisors are looking forward to the kickoff of 2016 to assess and implement new training programs for employees. GCCA offers an industry-focused training solution that is a total training tracking solution. Online Learning gives employers the ability to develop training plans for individual employees, track course completion for online courses as well as instructor led in-house course completion through an advanced learning management system. The program is offered to members of all GCCA core partner associations for a low cost of $75 US per year, per user license. Live demos are available if you’re interested in learning more. GCCA Online Learning offers a convenient and efficient way to advance your career or train employees with individualized, selfpaced training that can be accessed on-demand, 24/7. The GCCA Online Learning Library contains industry-specific courses in food safety and cold chain management plus critical courses in employee safety compliance, human resources, and career development. Online learning lets you offer highquality training to employees at a reduced cost. With no travel required and the low course fees, GCCA Online Learning is an affordable solution to your training needs. For more information about group registration, cancellations, access, or to arrange a demo, please contact Catharine Kuber Perry email: ckuber@gcca.org
[ INTERNATIONAL NEWS ]
SARDA - South African Refrigerated Distribution Association - Tony Lewis Award Following 2014’s successful Peter Worthington-Smith Award won by Ivan Sutic of Chilleweni Cold Storage, it has been decided to honour another “Great” in the local refrigeration industry for 2015 -Tony Lewis. Tony began working at Irvin & Johnson Ltd as the local production manager in 1957 after spending 7 years at the Fishing Industry Research Institute where he worked under the direction of Dr Dreosti and completed various research projects. During his years at Irvin & Johnson Ltd and after his retirement in 1985, Tony served on many influential committees due to his knowledge and experience in the fishing, food and refrigeration industries. These included: - Member of Board of Control of FIRI (Fishing Industry Research Institute) - For many years he was the SA Fishing Industry’s Technical Adviser to the SA Bureau of Standard’s delegation at Codex Alimentarius Committee on Fish and Fishery Products. - Member of IIR (International Institute of Refrigeration) working party which revised the IIR “Red Book” – (Recommendations for the Processing and Handling of Frozen Foods.) - Member of Food Technology Commission at the IIR. - Advisory board member at the International Journal of Refrigeration. - Member of RSA Liaison Committee for the IIR. - Member of the Scientific and Technical Advisory Group of the Washington based International Frozen Food Association. - Member of numerous SABS Committees on Food Standards and Codes of Practice. - Member of Department of Health’s Food Legislation Advisory Group as from 1988.
During his time as Irvin & Johnson Ltd’s Group Transport Manager, Tony was part of the team which introduced refrigerated GRP bodies leading to I & J becoming a large operator of refrigerated vehicles. Entrants into the Tony Lewis Award should match the following criteria: 1. Currently employed in cold or freezer stores in Africa 2. Under the age of 35 years on 1st April 2015 3. Have worked within the Cold Storage Industry for more than 3 years 4. Have insight of their company’s strategic plan 5. Have a broad knowledge of the African cold storage industry 6. Cold store where currently employed has a pallet capacity of 500 pallets or more Entry forms available from: John Ackermann at SARDA Email: jasac@iafrica.com Tel: 021 551 5076 Or Danielle Manuel at Barpro Storage SA Email: danielle@barpro.co.za Tel: 021 5529190 Entries close on Friday 20 November. Initially entrants will be judged on the basis of written applications. Finalists will travel to Cape Town (expenses paid) in December 2015 for the final judging. The winner will attend the 2016 Global Cold Chain Alliance Convention in the USA in April 2016 (expenses paid) and will make a presentation to the 700+ delegates.
Tony Lewis
Retracom
Refreshing ideas in Cold Storage
FRANK VALE “ FUTURE LEADERS” AWARD
Retracom are proud to have been the major sponsor of the Frank Vale Award. The Frank Vale Award has been awarded annually since 1993 to acknowledge talented young
people within the industry, who have demonstrated to their employers that they have the potential to become future leaders, and make a positive contribution to the development of the Australian Cold Chain Industry.
Retracom has a strong relationship with the RWTA and is looking to continue that relationship for many years to come.
\. Retracom
Contracting
Retracom Contracting 80 Magnesium Drive, Crestmead Qld 4132 Ph: 1800 008 944 www.retracom.com.au
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[ INTERNATIONAL EVENTS ] 125th IARW-WFLO Convention Date:
Sun 16th to Tue 19th April 2016
Venue:
Cosmopolitan Hotel Las Vegas Nevada USA
125th IARW-WFLO Convention 11:00 a.m. – 12:15 p.m.
Peer to Peer Executive Roundtables
12:15 p.m. – 1:15 p.m.
Networking Lunch
1:30 p.m. – 3:30 p.m.
Scientists Speak
6:30 p.m. – 9:30 p.m.
Opening Night Reception
9:30 p.m. – 12:30 a.m.
After Glow Lounge
April 16-19, 2016 | The Cosmopolitan Las Vegas | Nevada The 125th IARW-WFLO Convention will offer a variety of new and exciting educational, social and business development experiences. Keynote presenters will focus on business issues that are impacting your organization…in fact there are four scheduled for 2016. Gone are the Focus Sessions on warehouse operations and in their place are Peer to Peer Executive Roundtables, Entrepreneur Encounters, and Cool Pioneers learning arenas each designed for senior level executives needing to understand and find solutions to key business challenges and opportunities. The traditional convention Expo component has moved to the Global Cold Chain Expo taking place in Chicago June 2016 and will no longer be a feature of Convention however, there will be plenty of high level business development and networking opportunities for buyers and suppliers to connect and build relationships – just in a different way than in past years. Schedule Saturday, April 16, 2016
10:00 a.m. – 11:00 a.m. WFLO Executive Committee Convention Review Meeting
11:30 a.m. – 12:30 p.m. IARW Executive Committee 12:00 p.m. – 5:30 p.m.
Registration / Networking Lounge
1:00 p.m. – 3:00 p.m.
IARW Board of Directors Meeting
3:30 p.m. – 5:30 p.m.
WFLO Board of Governors
6:30 p.m. – 7:45 p.m.
IARW-WFLO Chairmen’s Reception
Registration / Networking Lounge
8:30 a.m. – 10:00 a.m.
Opening General Session & Breakfast
10:30 a.m. – 12:00 p.m. E2 – Entrepreneur Encounter 12:00 p.m. – 1:30 p.m.
General Session & Luncheon
1:30 p.m. – 2:00 p.m.
Break
2:00 p.m. – 3:00 p.m.
Learning Lounge
3:00 p.m. – 3:15 p.m.
Refreshment Break
3:15 p.m. – 4:00 p.m.
General Session
6:30 p.m. – 9:30 p.m.
Monday Night Extravaganza
9:30 p.m. – 12:30 a.m.
After Glow Lounge
Tuesday, April 19, 2016
7:30 a.m. – 12:00 p.m.
Registration / Networking Lounge
8:00 a.m. – 9:00 a.m.
Networking Breakfast
9:00 a.m. – 10:00 a.m.
Cool Pioneers
10:00 a.m. – 10:30 a.m. Refreshment Break 10:30 a.m. – 12:00 p.m. General Session
Schedule subject to change.
11:00 a.m. – 11:30 a.m.
8:00 a.m. – 4:00 p.m.
10:00 a.m. – 10:30 a.m. Refreshment Break
Details
Monday, April 18, 2016
Sunday, April 17, 2016
8:00 a.m. – 6:30 p.m.
Registration / Networking Lounge
8:30 a.m. – 10:30 a.m.
IARW-WFLO Joint Board Meeting – State of the Association
10:30 a.m. – 11:00 a.m. Refreshment Break
1:00 p.m. – 6:00 p.m.
Golf Tournament / Group Activity
7:00 p.m. – 8:00 p.m.
Networking Reception
8:00 p.m. – 9:30 p.m.
Closing Night Event
9:30 p.m. – 12:30 a.m.
After Glow Lounge
Education
The 125th IARW-WFLO Convention will offer a very different and exciting educational experience than attendees have seen in past years. There will still be keynote presenters focused on business issues that are impacting your organization… Gone are the Focus Sessions and in their place you will be able to participate in Peer to Peer Executive Roundtables, Entrepreneur Encounters, and hear from Cool Pioneers. The Education Committee is hard at work developing this year’s program. But below is a sneak peak at some of the offerings mentioned above.
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[ INTERNATIONAL EVENTS ] Peer to Peer Executive Roundtables Peer to Peer Executive Roundtables provide attendees a chance to share ideas, ask questions, and solve problems with their peers in a small group setting of 25 people per group. The moderator will guide the participants through questions that they have submitted in advance to talk about; diving in to the subjects that matter most to executives in the cold chain industry. E2 – Entrepreneur Encounter Learn from some of the best and brightest entrepreneurs today who have grown companies and brands from the ground-up. These leaders are wildly-successful and will share their secrets to success and how they have taken ideas and concepts into million dollar businesses.
After Glow Party
Cool Pioneers
Sunday, April 17 | 9:30 p.m. – 12:30 a.m.
Within the cold chain industry, there are pioneers who are innovating in human capital development, cost-savings, and time-savings. The presenters for these sessions are IARW warehouse members, like you, who have made an impact on the industry through their innovations. Hear about their perspectives during “Cool Pioneers.”
Monday, April 18 | 9:30 p.m. – 12:30 a.m. Tuesday, April 19 | 9:30 p.m. – 12:30 a.m. Mont Royal – The Cosmopolitan Hotel
• Talent (human capital development) • Treasure (cost-savings) • Time (time-savings) More information will be posted soon so check back frequently.
Networking Events
IARW-WFLO Leadership Reception & Dinner (invitation only) Saturday, April 16 | 6:30 p.m. – 9:00 p.m. Moon Night Club - Palms Hotel & Casino
Moon Night Club – Palms Hotel & Casino
Don’t get lost in the lobby bar after you come back from dinner! Find your friends and colleagues in the after-hours lounge created just for IARW-WFLO Convention attendees. The lounge will be open every evening of the convention and feature an open bar, live entertainment nightly AND a faux casino – you’ll be playing all the real games but just with fake money so there will be no losers here only winners! Opening Night Extravaganza Monday, April 18 | 6:30 p.m. – 9:30 p.m. The Vortex – The Linq Hotel
First Timer / New Member Reception Sunday, April 17 | 6:00 p.m. – 6:30 p.m. Boulevard Pool – The Cosmopolitan Hotel Welcome Reception Sunday, April 17 | 6:30 p.m. – 7:30 p.m. Boulevard Pool – The Cosmopolitan Hotel Join us for a night of fun and networking, as we welcome you to the 125th IARW-WFLO Convention. Enjoy an open bar, light hors d’oeuvres, friends and great conversation. 30 DECEMBER 2015 I COLDºRUNNING
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[ INTERNATIONAL EVENTS ] This exciting evening offers you exclusive access to the newly opened Vortex sitting two stories up above the Vegas strip and across the street from the famous fountain show at the Bellagio Hotel & Casino. Join follow convention attendees for an open bar, heavy hors d’oeuvres (no need to go to dinner!), live music, dancing and much more.
IARW Golf Classic
Farewell Reception & Vegas Show Tuesday, April 19 | 7:00 p.m. – 9:30 p.m. The Chelsea Theater – The Cosmopolitan Hotel Spend one last time connecting with your fellow convention attendees at the Farewell Reception. Immediately following the reception attendees will be treated to a Las Vegas style show (think something like Cirque du Soleil). Make sure to stay Tuesday night and participate in this unforgettable experience!
Tuesday, April 19 | 1:00 p.m. – 6:00 p.m. Buses leave at 11:45 a.m. Bali Hai Golf Club 5160 S. Las Vegas Blvd. Las Vegas, NV 89119 This is the nationally-ranked Las Vegas golf course takes you from the hustle and bustle of the casino floor, to 7,002 yards of tropical golf paradise. Find yourself transported to the tranquility and beauty of the South Pacific, with the Strip still in your sights. Fee per person includes: Lunch, Greens Fee, Cart fee, Range Balls, and Rental Shoes (?)
The Albany RR300 Freeze Extreme Durability in Freezer Environments Albany RR300 Freeze doors use a sophisticated ‘Climatex’ cellular insulated panel material to minimize energy loss and maintain freezer environments to temperatures colder than -20°C.
ASSA ABLOY Entrance Systems – Opening Doors to Business
ASSA ABLOY Entrance Systems, No. 9 Mc Ilwraith Street, Wetherill Park 2164, Sydney, NSW Ph: 1300 666 232, Fx: (02) 9756 4340, sales.ads.au@albint.com, www.albanydoors.com
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[ INTERNATIONAL EVENTS ] Global Cold Chain Expo Date:
Mon 20th to Wed 22nd June 2016
Venue:
McCormick Place (South Hall) | Chicago, IL USA
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RWTA National Office & State Division Contact List National Office Russell Sturzaker Executive Officer
Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au
Address: VTA Offices, 50 Wirraway Drive Port Melbourne VIC 3207
Postal Address: PO Box 5, South Melbourne VIC 3205
Anne Thornton Admin Officer
Tel: (03) 8620 2817 Fax: (03) 9645 6445 Email: admin@rwta.com.au
Victorian Division
Greg Lucas Chair & State
Telephone: (03) 9240 4033 Mobile: 0417 553 065 Email: gregl@ABOxford.com.au
Russell Sturzaker
Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au
New South Wales Division
Representative Acting Chair & State Representative
Queensland Division Rachel Corcoran Chair & State Representative South Australian Division Rick Skewes Chairman
Telephone: (07) 3004 1402 Mobile: 0488 900 445 Email: rachel.corcoran@americold.com.au Telephone: (08) 8343 3234 Mobile: 0429 047 618 Email: rskewes@swirecoldstorage.com.au
Bill Andary State Representative
Telephone: (08) 8304 6000 Mobile: 0413 437 070 Email: bill@auscold.com.au
Western Australian Division
Russell Sturzaker Chair & State Representative
Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au
Tasmanian Division
Russell Sturzaker Chair & State Representative
Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au
Australian Capital Territory
Russell Sturzaker Chair & State Representative
Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au
Northern Territory
Russell Sturzaker Chair & State Representative
Telephone: (03) 8620 2802 Mobile: 0418 173 566 Email: rsturzaker@rwta.com.au COLDºRUNNING I DECEMBER 2015 33