SCLAA July 2014 eNewsletter by Supply Chain & Logistics Association of Australia (SCLAA)

SCLAA NEWSLETTER JULY-AUGUST 2014

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ARE WE REALLY GAME PLAYING?

n the previous issue of this Straight Talk Column I discussed the necessity to explore and discover real Game Changers in Supply Chains. The search for ‘Next Practice’ (that is, beyond known ‘Best Practice’) remains as a consuming passion for me. It occurs to me now that ‘Game Playing’, rather than Game Changing, may indeed be the most prevalent behaviour in business. Pretence is fatal for Supply Chains. The essential enablers for Supply Chains include real collaborative and sharing relationships together with utilisation of technologies to develop and deliver appropriate information as required for participants along the Chain. I frequently observe Game Playing and pretence behaviours aimed at gaining advantage over a declared partner. Openness is a crucial attribute in forming value-generating partnerships. Mc Kinsey’s Alex Niemeyer recently discerned that companies often look for single, miraculous cures to their Supply Chain Problems. He noted,

“

I think a general trend is that executives look for silver bullets—and quite frankly, Supply Chain is a lot about hard work.

”

The International Journal of Operations and Production Management reported on an extensive three year study of Supply Chains in Europe. Amongst other things they concluded that, “Supply Chain Management is at best still emergent in terms of both theory and practice. Few participants were able, or even seriously aspired, to extend their reach across the Supply Chain in the manner prescribed in much modern theory”. Operations Management Journal suggested “Opportunities for unethical behaviour are enormous and temptations are high”. Seems to me despite thirty years of experimenting and developing Supply Chain practice we are still struggling to courageously adopt and pursue the real value generation aims of Supply Chain, and the essential collaborative and sharing relationships. Our personal and corporate behaviour and principles are the key issues. Deliberately duping partners is damaging but it is even more destructive to delude ourselves. Hard work, openness, integrity, inspiration, and compassion are almost certainly the characteristics of well-adjusted and value generating supply chain participants. How do your supply chain behaviours and principles stand up to Best or Next Practice standards? Some years ago I attended a Conference in Chicago (or maybe San Antonio or Orlando or Anaheim...I am getting a little bit forgetful as I gracefully age). Anyway the Conference theme was ‘Vision, Visibility, and Velocity -Three keys of Supply Chain Management’. I liked those three V’s but thought they did not appropriately cover the keys.

p: 1300 364 160

On returning to Australia I debated what other V’s might be added to effectively cover the field. In company with the Victorian Supply Chain Roundtable we came up with two others: Value and Volatility. With the passing of time all five V’s still have real relevance but as I see it Volatility is an issue that has progressively increased in importance as we struggle to deal with it at all levels of commerce. Technology advances and globalisation have exacerbated the problem. The Global Financial Crises aftermath, coupled with rapidly changing consumer behaviour and the impact of emerging economies on manufacturing are added complications. Demand Management is often impacted by the whims and notions of people interpreting the relevant data. Their behaviour is a critical factor in collecting and interpreting data and then making decisions. Flexibility and agility are desired components in Supply Chains and Demand but many practitioners battle to adjust their behaviour to allow those components to flourish and deliver benefits. My strong belief is that the ‘Who’ in Supply Chains is much more important than the ‘What’ or ‘How’. People are certainly the primary element. Developing behaviours aimed at facilitating the critical sharing partnerships and, or, appropriate relationships, both inside and outside the organisation, must be seen as a mandatory precursor. Steve Simpson, author and champion of the “Unwritten Ground Rules” concept, emphasises that written policies and rules don’t necessarily create the intended productive environments. People will adopt the Unwritten Ground Rules and organisations must recognise and nurture the knowledge and attitudes of the people. In my Supply Chain World people, behaviours, and principles (ethics, integrity and value sharing) are crucial success factors for individuals, organisations and Supply Chains. The Queensland Supply Chain & Logistics Conference, of which the SCLAA are one of the host bodies, scheduled for early September 2014, will provide a real platform for us to explore and discover together the opportunities and elements of Next Practice supply chains. People and behaviours loom as vital issues.

“

”

These are the days when it takes all you have got just to keep up with the losers.

e: secretary@sclaa.com.au

Robert Orben

David Doherty OAM Founder and Explorer Supply Chain and Logistics Observatory SCALO davdoh1@optusnet.com.au

w: www.sclaa.com.au

DO YOU WANT TO SAVE MONEY ON ELECTRICITY, FUEL OR REFRIGERANT? DO YOU WANT A COMPETITIVE ADVANTAGE? SCLAA will be providing tailored and Industry specific

FREE TRAINING

To Australian SME Supply Chain & Logistics companies on energy efficiency in • Every capital city across Australia • 22 regional and rural areas • Via webinar • On our website www.sclaa.com.au Comprehensive 7 phase program with follow ups Click the GREEN icon on www.sclaa.com.au to register This program will be run in the locations below during 2014. There will also be ten webinars, for SME’s unable to attend, who can view it on their computer when convenient. JULY Townsville 28th July Rockhampton 29th July Gladstone 30th July Brisbane 31st July

AUGUST Gold Coast 1st August Sydney 25th August Wollongong 26th August Newcastle 27th August Coffs Harbour 28th August

SEPTEMBER Tamworth 1st September Orange 2nd September Hobart 11th September Launceston 12th September Whyalla 17th September Adelaide 18th September Darwin 22nd September

This activity received funding from the Department of Industry as part of the Energy Efficiency Information Grants Program.

SCLAA NEWSLETTER JULY-AUGUST 2014

2014 SCLAA SCHOLARSHIP CLOSES SOON

UQ BUSINESS SCHOOL EXECUTIVE EDUCATION Supply Chain Optimisation Course NOMINATION CLOSING DATE: FRIDAY THE 4TH OF JULY 2014.

The winner of the 2013 UQ Scholarship Athol Carter, Transport Operations Coordinator, Ostwald Bros Transport

he SCLAA, in conjunction with the UQ Business School, would like to call for nominations for the 2014 Supply Chain Optimisation Scholarship. This scholarship is a national program for all members of the SCLAA.

SCHOLARSHIP VALUE • $5,400 includes tuition, course materials, morning tea, lunch and afternoon tea each day and a formal dinner – flights, accommodation & incidentals to attend, should the winner be from interstate, will also be paid for by the SCLAA. • 1 x Delegate Ticket to the 2014 Queensland Supply Chain and Logistics Conference which will be held on the 4th and 5th of September at the Sofitel Hotel, Brisbane.

COURSE DATE: 11th to the 14th of September 2014 VENUE: UQ BUSINESS SCHOOL EXECUTIVE VENUE Central Plaza One, 345 Queen Street, Brisbane Key Benefits of the UQ Business School Supply Chain Optimisation Course; Through attending the Supply Chain Optimisation course you will be able to: • BUILD tools and frameworks to improve core business processes. • DELIVER superior managerial performance with significant business impact. • IMPROVE your organisation’s performance in international, as well as domestic markets. • FORMULATE practical ideas, models and tools of leadership and strategy, which will help you examine your supply chain management system. • LEARN how successful leaders engage others in the supply chain process. One of Australia’s leading institutions, the UQ Business School is ranked amongst the World’s Top 50 providers of Executive Education, according to the Financial Times. The MBA program has recently been ranked number 1 in Australia and Asia Pacific by The Economist. COURSE FACILITATORS Dr David Parker is a Senior Lecturer at UQ Business School specialising in project management, operations management, supply chains and lean systems. He has worked with numerous international firms and is the author of books including Managing Projects, Managing People (2008), Service operations management: The total experience (2012). Liam Stitt is a supply chain, logistics and process improvement practitioner. His principal strengths are in developing strategic concepts and translating these visions into reality. His underlying expertise is in change management and business improvement. SUBMITTING YOUR FORM To access an application form please email secretary@sclaa.com.au or Ph: 1300 364 160.

SCLAA NEWSLETTER JULY-AUGUST 2014

THE KEY TO SUPPLY CHAIN SUCCESS USA

2014 Queensland

Thursday 4th & Friday 5th September Sofitel Hotel Brisbane

THE KEY TO SUPPLY CHAIN SUCCESS

he 15th annual Queensland Supply Chain and Logistics Conference program is now available with an extensive line-up of Senior Executive guest speakers including international keynote speaker Dr Edward Frazelle, Executive Director, RightChain Institute in the US, John Wagner, Chairman, Wagners Global Services, John Dornbusch, Chief Executive Officer, Freight Terminals, Kobus van der Wath, Managing Director, The Beijing Axis, Mark Hulme, Chief Operating Officer, DP World Australia and Mike Goodall, General Manager – Resources, Greyhound Australia. Additional speakers include Radar Gillett, Manager Procurement Corporate and Operational Services, Virgin Australia Airlines, Henry Brunekreef, Director Supply Chain, Siecap Advisory, Steve Kanowski, Chief Economist and Executive Director, Department of State Development, Infrastructure and Planning, Deanne Hawkswood, Chief Procurement Officer, Department of Transport and Main Roads, Peter Keyte, General Manager Trade Services, Port of Brisbane to name just a few. Following on from the successful new workshops that were introduced on Day Two in 2013 there will be six workshops to choose from focusing this year on personal and professional development. Delegates will have the choice of attending workshops on Procurement, Supply Chain & Logistics and Personal Development. To be held on Thursday the 4th and Friday the 5th of September at the Sofitel Hotel Brisbane, the Queensland Supply Chain & Logistics Conference is the largest event of its kind in the state and is ideally suited for Supply Chain, Logistics, Transport and Procurement professionals and practitioners. A uniquely-styled educational event, the conference is designed for both professional and personal development in a most-relaxed environment. With a theme of ‘The Key to Supply Chain Success’ the 2014 Queensland Supply Chain & Logistics Conference is an event not-to-be-missed. The Queensland Supply Chain & Logistics Conference is organised by leading industry associations the Supply Chain & Logistics Association of Australia, (SCLAA) the Australian Institute of Packaging (AIP), QUT School of International Business, CIPS Australia, the Australasian Production and Inventory Control Society (apicsAU) and the South East Queensland Procurement Network Group. 2014 Partners to date include: Haymans Electrical & Data Suppliers, Telstra, Office Max, Konica Minolta, Staples, Workplaces for Wellness, CNW Electrical, STEP Supply Chain, All Purpose Transport, ArcBlue, Barcode Dynamic Solutions, Cyberscience, Eden Ritchie, Energex Limited, itGlovebox, Leadership Management Australia, Logan Office of Economic Development, Metropolitan South Institute of TAFE, Omnix Transport Solutions, Project Procure, RedEye Apps, Siecap, Transpacific Industries Group and UQ Business School. To register to attend the 2014 Queensland Supply Chain and Logistics Conference please email info@qldscc.com or visit www.qldscc.com today for a registration form and program.

SCLAA NEWSLETTER JULY-AUGUST 2014

Dr Edward Frazelle RightChain™ Institute

Amanda Gore Motivational speaker and author

Mark Hulme DP World Australia

Jane Anderson Speaker, Author, Mentor

John Wagner Wagners Global Services

Glen Moloney VIrgin Australia Airlines

TROJAN RECRUITMENT GROUP JOINS THE SCLAA

he SCLAA are pleased to welcome Trojan Recruitment Group to the National Partners program. With over twenty years experience in the Australian recruitment industry, Trojan are the right people to help you find the right people. They offer a wide range of outsourcing and consulting services, as well as temporary, contract, and permanent employment solutions. Trojan can deliver recruitment and career services to organisations and individuals across the employment lifecycle. Trojan help businesses attract, retain and engage the best people, streamline business processes and help improve client performance through their core service offerings of Recruitment Solutions, Outsourcing and Consulting Services. They help individuals find permanent, temporary and contract jobs in a multitude of roles, across a diverse range of industries. Through their on-line database they help jobseekers connect with some of Australia’s leading employers. Trojan exists to share their customers’ workload and to solve their business problems using people and their skills. By doing this they add value to every customer’s business. They focus on their strengths in industry sectors, growing their customers through the right mix of sales, service and safety, and helping all their people maximise their potential with us. Ultimately, they are about people. People who don’t just do a job, but live their role as an expression of who they are. Trojan creates powerful connections between organisations and the talent they need to enhance their competitiveness and unleash their workforce potential. As a member of the Recruitment and Consulting Services Association, they are committed to the highest levels of ethics and professionalism in their industry. Their core values are being real, determined and people-focussed.

They believe in relationships, not transactions. With branches located in most capital cities and regional centres around Australia, Trojan has provided organisations in Australia with a continuum of staffing solutions from the incidental to the strategic, working with businesses to help them win. Trojan has never claimed to be the biggest recruitment company; however they strive to be the best. An overview on how your company can assist SCLAA members: Trojan Recruitment Group’s Transport, Warehousing and Logistics division provides tailored workforce solutions that match the specific needs of their customers. Their experience within the industry gives us a strong understanding of what companies really need from a recruitment partner – fast turnaround, high productivity levels and maximum return on investment. With a professional team of qualified consultants, committed to providing a superior level of service to both clients and candidates, Trojan’s philosophy is to solve their clients problems using people and their skills, and to help candidates maximise their potential with them. Whether it is a forklift driver, a logistics manager, a pick packer or anything in bettheyen, whether you want someone just for tomorrow or for the foreseeable future, Trojan’s industry-trained consultants can meet your needs precisely. Trojan is proud of its reputation in the industry as a quality service provider and believes that their service offering places them in an exceptional position to build a strong partnership with members of the SCLAA. For more information on how Trojan can assist their business or help find your next career move please visit www.trojanrecruit.com.au

Expand your knowledge... Extend your vision... Become a NATIONAL PARTNER of the SCLAA

STEP Supply Chain Training & Evaluation Professionals

SCLAA NEWSLETTER JULY-AUGUST 2014

TELSTRA SIGNS ON AS NEW NATIONAL PARTNER

lobal competition, rising power and fuel costs, challenging terms of trade and the strong Australian dollar – combined with environmental pressures and ever increasing compliance requirements are creating challenges for Australian supply chain companies and their offshore partners.

To help them reduce costs through automation and process improvements, Telstra is connecting supply chain partners to each other, their work and their customers. By integrating partner systems in the cloud they are enabling companies to collate realtime data that is automatically factored into variables – from pricing to delivery dates, supply volumes and stock availability – without manual input. And they are bringing new efficiencies to transport fleets with consignments that tell you where they are, triggering pickup or transfer arrangements automatically. They bring a strong suite of capabilities to every engagement. These include: a skilled, experienced workforce, a track record for innovative supply chain solutions, and secure, far-reaching networks capable of securely connecting machines, people and systems across distance and devices. To ensure the best possible value, they have designed a connected supply chain vision blueprint – an ICT infrastructure connecting supply chains with seamless collaboration and communication between workers, suppliers, customers and machinery. The result is a more collaborative, demand-driven supply chain optimised to increase uptime, reduce costs, improved asset utilisation and safety compliance. For more information please contact Tracy Kittle via Tracy.Kittle@team.telstra.com

PROUD TO BE YOUR PARTNER Telstra is proud to announce our sponsorship of the Supply Chain and Logistics Association of Australia. The spectrum device and ™ are trade marks and ® are registered trade marks of Telstra Corporation Limited, ABN 33 051 775 556.

17067_TEG_SCLAA_Sponsorship-ad_v2.indd 2

SCLAA NEWSLETTER JULY-AUGUST 2014

We’re committed to connecting Australia’s supply chain and logistics providers. To find out how we can help your business thrive, contact your Account Executive or visit your local Telstra Business Centre.

21/05/14 2:20 PM

SHOULD WE SELL OUR PORTS?

oth the Victorian Government and the Opposition have recently announced that they intend to sell the Port of Melbourne, and possibly the Port of Hastings. Although presented as a win-win outcome, careful consideration of the implications of the sale reveals a more complex picture. Ports and in particular capital city ports are, by their nature, monopolies and if sold to private investors need careful regulation to prevent the owners from holding stakeholders and users of the port to ransom. Port operators have the power to set the rates for port users and currently Victorian ports have only minimal regulatory oversight by the government through the Essential Services Commission and the Australian Competition and Consumer Commission. A recent example of overcharging by a privatised port can be seen at Port Botany where port users pay certain charges (such as the Port Logistics Charge and the recovery fee of the Port Botany Landside Improvement Strategy) twice, once to the new owners, NSW Ports, and again to the NSW Government. In response to the proposed privatisation, Victorian exporters have already expressed concern about higher port charges impacting on the viability of their export businesses. Queensland started the privatisation process by selling the Port of Brisbane in 2010, via a 99-year lease for what is now a seemingly cheap $2.1 billion, to replenish its empty Treasury coffers. This money disappeared into consolidated revenue. Since then Global Infrastructure Partners (GIP) sold their 27% stake in the Port of Brisbane to a Canadian pension fund for more than $1 billion, which effectively means GIP doubled their money in three years. Nice work if you can get it but a loss to Queensland taxpayers.

New South Wales followed by selling both Port Botany and

Port Kembla in 2012 and raking in a healthy $5.1 billion. Some of this money will, apparently, be re-invested into infrastructure

projects such as the Westconnex Motorway and the Pacific Highway

Both the Victorian Government and the Opposition think

they can win votes by improving infrastructure; this is a good thing. However, although high on the agenda of both State and Federal governments, infrastructure policies seem somewhat hasty and haphazard, with potentially dire consequences.

The question is whether governments should be so keen

to sell off these monopoly assets to fund a shortfall in dollars. Even if the reasoning is to spend the money raised on projects

to ease road congestion and/or improve public transport, is it wise in the long run?

Whilst the initial sale might be to a benign or passive investor,

such as a super fund, ownership further down the track will be

out of the control of the government and not all potential buyers are interested in the port as a public good.

Other countries, such as our neighbour Indonesia, restrict

foreign ownership of port assets to 49% and many overseas

governments are reluctant to sell monopoly assets such as

ports to private investors. There is an argument that ports act as a driver for economic growth, which ultimately benefits the area the port serves.

SCLAA NEWSLETTER JULY-AUGUST 2014

SHOULD WE SELL OUR PORTS? Cont’d Moreover, a port corporation can act as a trade facilitator and

play an educational role, functions considered important even if there is no direct contribution to the bottom line. In a number of ports the educational role is clearly visible, and considered vital, given their need to communicate with the community about the importance of the port to the local economy. This is especially important when the port needs to expand and controversial measures need to be taken. For example, during the recent channel deepening of Port Phillip Bay, the management of community expectations and concerns by the Port of Melbourne Corporation was vital in bringing the project to a satisfactory conclusion. Private owners of ports are less likely to undertake nonrevenue raising activities and prefer to ‘sweat the assets’. For example, the Port of Brisbane closed down its port education centre after privatisation. The Port of Melbourne education centre will probably be one of the first port activities to go should privatisation occur. Conversely, the Port of Rotterdam’s multi-million dollar visitors and education centre, on their newly developed Maasvlakte 2, demonstrates the importance the port’s owner, the City of Rotterdam, places on this role. The proposed price, $6 billion for the Port of Melbourne and up to $8 billion if the Port of Hastings is included, seems overly optimistic. There is virtually no infrastructure on either the landside or the water side at the Port of Hastings to support a large container terminal and hence no direct cash flow for the new owner (whether the Port of Hastings should be considered as an alternative container port at all is another story!).

With an expanded Port of Hastings a possibility, the proposed development of Webb Dock at the Port of Melbourne with a new container terminal and a potential increase of capacity by the current container terminal operators at Swanson Dock could be reviewed. It is doubtful whether the current bidders for the Webb Dock development would like to sink 250 million dollars into a modern container terminal with the threat of the Port of Hastings taking over as the main container port for the State of Victoria. Although this threat currently exists, it can be better managed while both ports are under the control of the State government. A private operator is more inclined to minimise capital spending and maximise the return on investment. Proposals from both the Coalition and Labor seem ill-conceived and made on the run in an effort to raise additional monies to spend on projects popular with voters in the lead-up to the November election. It will be interesting to see what the public will think in years to come of the opportunities missed by governments to make Victoria a more liveable and prosperous state through not having the political will to take a long-term view rather than trying to score points by selling off important government-owned assets to fund popular projects. Peter van Duyn Maritime Industry Expert Supply Chain Advisory Network Institute of Supply Chain and Logistics-Victoria University

New Course Dates

New dates just released for our next short course

DEMAND & SUPPLY PLANNING EXCELLENCE Melbourne SEPTEMBER 9th & 10th Sydney SEPTEMBER 16th & 17th

Limited places. Book now

+61 3 9013 7224 8

info@scbi.net.au

SCLAA NEWSLETTER JULY-AUGUST 2014

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SCLAA NEWSLETTER JULY-AUGUST 2014

PISM SUPPLY LINK CONFERENCE

he PISM Supply Link Conference was supported by Members Confirmed To Tianjin APLF Meeting Hosted CFLP APLF and delegates from USA, Sri Lanka, Australia, • SIMM Singapore, Taiwan and other countries. It was a two- • Myanmar Logistics Association • Vietnam and Mariel SupplyZamora Chain Association day high-powered conference in Manila featuring topTy (PISM), From Left: Ricky Sison (PISM), Mark Skipper (SCLAA), Edward RogerLogistics Lee (SIMM), (PISM), Rhena Tan Australia(PISM), (SCLAA) notch speakers from Alcañeses the industry. Congratulations to(PISM), Mariel B. (SIMM), Ma. Gracia (PISM), Alicia Pascual Rhea• Pabustan Lourdes Guzman (PISM), James Tian (SIMM), • (SOFSM). Bangladesh Logistics Association Zamora (President of PISM) her team for the (PISM), job well Lorie done.Ligot Erwin Dennis Lacson (PISM),and Edwin Constantino At the same time, we had a record number of 22 delegates who • PISM achieved the APLF Certified Logistics and Supply Professional • Indonesia Logistics Association (ALI) - Asia Pacific (CLSP-AP) qualifications. We would also like congratulate Ricardo Joaquin V. Sison (President, SOFM, ex-President of PISM) for being awarded the Gawad SINOP award. The Gawad SINOP Award recognises and pays tribute to supply management professionals with excellent performance and corporations that have shown exemplary contributions to the development the uplift the supply management profession. It is considered the highest honour given to professionals who has contributed in the industry. The conference ends with a high note, ie. PISM organised a great musical dinner and dance performance. The energetic live band and saxophone performance by Taiwan and Philippines members was appreciated and applauded by the audience. APLF meeting in Tianjin China On behalf of Chairman, APLF, He Liming, it is my pleasure to announce the next APLF meeting will be held on 1 Aug - 3 Aug 2014. The meeting will be hosted by China Federation of Logistics and Purchasing (CFLP) in Tianjin, China. The APLF meeting is also held in conjunction with the CFLP conference which has an audience of a few hundred people. The theme of CFLP conference is on Education and Research in Logistics. This event will be a great networking session for all APLF members and CFLP will also organise industrial visits and also meeting up with Nankai University, which is a top ranked university in China and also visit to Tianjin Port.

Asia Pacific Certified Logistics and Supply Professional Qualification For those countries who are interested to hep your members achieve the CLSP, please contact me. I understand that Indonesia, Mr Zaldy is very keen to help their members achieve their CLSP qualifications. I will further discuss with New Zealand, CILT, Mr Chinthaka (President) and hope that he is able to join in the APLF meeting in Tianjin. We look forward to the meeting in Tiajin. About Tianjin Tianjin is a metropolis in northern China and one of the five national central cities of the People’s Republic of China (PRC). In terms of urban population, Tianjin is the fourth largest in China, after Shanghai, Beijing, and Guangzhou. Tianjin is a dual-core city, with its main urban area (including the old city) located along the Hai River, which connects to the Yellow and Yangtze Rivers via the Grand Canal; and Binhai, a New Area urban core located east of the old city, on the coast of Bohai Sea. As of the end of 2010, around 285 Fortune 500 companies have set up base in Binhai, which is a new growth pole in China and is a hub of advanced industry and financial activity. Since the mid-19th century, Tianjin has been a major seaport and gateway to the nation’s capital.

Supplylink Exhibit Hall Supplylink Exhibit Hall

10 Opening SCLAA NEWSLETTER plylink Ceremony

JULY-AUGUST 2014 PISM Booth in the Exhibit Hall

Supplylin

2014 VIC SCL AWARDS CLOSE SOON he Supply Chain & Logistics Association of Australia, Victorian Division, wishes to advise that nominations are closing in July for the VIC Supply Chain and Logistics Awards, which is the state feeder program into the ASCL Awards.

FUTURE LEADERS AWARD The purpose of this award is to provide incentive and recognition to young professionals who are both currently working in and wish to continue their career path within the Supply Chain, Logistics and Transport Industry. This is a wonderful opportunity to showcase young professionals within our great industry. Finalists will be interviewed by a panel of judges the week leading up to the awards. INDUSTRY EXCELLENCE AWARD NEW PRIZE VALUED AT $9,480 NOW AVAILABLE PRIZE DONATED BY

2014

ENVIRONMENTAL EXCELLENCE AWARD This award recognises corporate leadership contributing to the solution of environmental sustainability within our industry through performance and action. SUPPLY CHAIN MANAGEMENT AWARD The aim of this award is to encourage and acknowledge the outstanding achievement of an organisation that has demonstrated significant achievement in managing the integration of Supply Chains. This could be functional integration within an organisational Supply Chain, or more widely across Supply Chains involving several organisations that have formed trading partnerships or alliances. Collaboration and added value across the Supply Chain, achievements gained through outsourcing and the development of new business models could also be demonstrated.

This prestigious award recognises and acknowledges the outstanding achievements and contribution by an individual currently working within the Supply Chain, Logistics and Transport Industry. The judges will be looking for individuals who have demonstrated vision and leadership, shows innovation SUBMISSIONS ARE DUE BY FRIDAY THE 11TH OF JULY and not afraid to take risks. Finalists will be interviewed by a For more information please phone the SCLAA National Office on 1300 364 160 or email vic@sclaa.com.au panel of judges the week leading up to the awards. TRAINING, EDUCATION & DEVELOPMENT AWARD To be presented to the company or institution that best demonstrates a significant achievement in aspects such as recruitment process, training, HR Systems, formal education and development programs which is both relevant to and promotes the Supply Chain and Logistics Industry.

Damian Cosgriff State President - Victorian Division vic@sclaa.com.au

$9,480 Prize Now Available for Winner of Industry Excellence Award PRIZE DONATED BY

The winner of the 2014 INDUSTRY EXCELLENCE AWARD will receive entry to the Graduate Certificate of Business Management valued at $9,480.00 from Swinburne University. The Graduate Certificate of Business Management (SCM) is a postgraduate qualification in the specialist field of supply chain and logistics. The course enables students to develop advanced skills and knowledge in the development, implementation and maintenance of supply chain systems using key principles and practices. Students learn a broad range of skills in the management of supply chain disciplines to further their career in this management function.

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The core units are in management, logistics and supply chain. A diverse range of subjects are offered for the elective component which allows students to specialise in a particular skill or interest area such as organisational leadership, risk management, change management, economics, organisational function & dynamics, project management, marketing, finance, human resource management and public relations. Upon successful completion of the Graduate Certificate, students have a pathway option to progress to the Graduate Diploma and then the Master of Business Management.

SCLAA NEWSLETTER JULY-AUGUST 2014

COASTAL SHIPPING, A NECESSITY FOR AN ISLAND NATION

ustralia, which has a coastline of about 16,000 miles, has been a shipping nation since Aborigines used canoes to transport goods and people. White settlement over two centuries ago was made possible by shipping. Even today, most of our exports are leaving our shores in ships (mainly bulk carriers), but only a few of these ships carry the Australian flag. In fact, the number of Australian flagged vessels has been in decline for decades and currently less than 50 (mainly old) Australian vessels service Australian ports. Coastal shipping has seen a similar decline and currently less than 20 Australian flagged vessels operate on the Australian coast. The previous federal government tried to halt this trend and revive the Australian shipping and maritime sector. They introduced the Coastal Trading Act 2012 along with changes in the Fair Work Act (2009) and taxation laws to create more favourable conditions for Australian flagged vessels. Whilst the intentions were good, some unintended side effects have had an impact on the supply chains of a number of Australian businesses and increased their costs. Coastal shipping in a large number of countries such as the USA (regulated by the Jones Act of 1920), Denmark, Indonesia, the Philippines and to some extent even China is protected by so-called cabotage laws. These laws dictate that any coastal cargo is carried by vessels which are flagged (and usually manned, or even built in the case of the USA) in the home country. Australia does have similar laws but it permits foreign flagged vessels to carry coastal cargo if no suitable Australian flagged vessel is available. A single voyage (or in some cases multiple voyages) permit is then issued. However, changes to the Fair Work Act mean foreign flagged vessels must pay Australian style wages to the (usually lower salaried) foreign crews whilst on the Australian coast. This has made it much harder, more expensive, and in most cases not viable for foreign flagged vessels to carry coastal cargo, to the detriment of the shippers who have had to find alternative (usually more expensive) options to keep their supply chains operating. This movement of cargo has shifted from transport by sea to rail or more commonly by road. In some cases the shift was not possible and the supply chain ceased to operate. The current government is considering its options of repealing or amending both the Coastal Trading Act and the Fair Work Act and a review by the Productivity Commission is currently underway. Recent comments by Deputy PM Warren Truss (also the Minister for Infrastructure and Regional Development) and Prime Minister Tony Abbott indicated that the Coastal Trading Act could be part of â&#x20AC;&#x2DC;Repeal Dayâ&#x20AC;&#x2122;. Minister Truss recently released an options paper which canvasses a number of options such as doing away with regulation of all access to coastal trading in all Acts of Parliament, repeal the Coastal Trading Act or continue to regulate the coastal trade but change some aspects of the existing regime.

A number of organisations such as the Australian Competition and Consumer Commission (ACCC), the Business Council of Australia (BCA) and the Institute of Public Affairs (IPA) have criticised the new coastal shipping regime for driving up costs in the supply chain of Australian companies describing it as protectionist and anti-competitive. In Victoria a number of members of the Supply Chain Advisory Network (SCAN) have indicated that it is cheaper for their businesses to import goods directly from overseas rather than sourcing them interstate. Another one commented that it is now cheaper to ship their product from Melbourne to Singapore than from Melbourne to Brisbane and that alternatives such as using rail or road rather than sea are just not viable. Coastal shipping should be considered as part of broad-based thinking about transport solutions for interstate and inter-capital freight movements. Multi-modalism (the transportation of goods under a single contract, but performed with at least two different means of transport) must be used to improve the availability of convenient and cost-efficient road, rail and sea freight options for the movement of (in particular) interstate domestic freight. It is important that both government and industry consider measures to promote multi-modalism. Viable alternative transport (such as coastal shipping) needs to be available quickly and cost effectively in instances such as derailments or road and rail being cut off by floods (as happened recently in North Queensland). A side but important issue is that rail and sea transport produce less greenhouse gasses and are safer than road especially over long distances. Lack of modal choice is seen as a significant issue by SCAN members and it implores the government to urgently fix some of these issues in order to ensure that no additional costs are imposed on the businesses that move freight (and in the end on the freight owner and the consumer). Maybe a first step in addressing the current situation is to amend or repeal these laws, but more needs to be done to promote multi-modalism and create a level playing field for all modes of transport. Dr Hermione Parsons Chairperson of the Supply Chain Advisory Network Director, Institute for Supply Chain and Logistics Associate Professor,College of Business, Victorian University (The Supply Chain Advisory Network involves expert logistics and supply chain practitioners dedicated to whole of supply chain integration and efficiency in Victoria. Members represent each point of the chain including: shipping companies, stevedores, transport companies, empty container parks, multimodal transport operators, importers, exporters, freight forwarders, logistics providers, customs, quarantine and peak freight industry associations.)

SCLAA NEWSLETTER JULY-AUGUST 2014

2014 NSW SCL AWARDS CLOSE SOON The Supply Chain & Logistics Association of Australia, New South Wales Division, wishes to advise that nominations are closing in July for the NSW Supply Chain and Logistics Awards, which is the state feeder program into the ASCL Awards.

2014 FUTURE LEADERS AWARD The purpose of this award is to provide incentive and recognition to young professionals who are both currently working in and wish to continue their career path within the Supply Chain, Logistics and Transport Industry. This is a wonderful opportunity to showcase young professionals within our great industry. Finalists will be interviewed by a panel of judges the week leading up to the awards. INDUSTRY EXCELLENCE AWARD This prestigious award recognises and acknowledges the outstanding achievements and contribution by an individual currently working within the Supply Chain, Logistics and Transport Industry. The judges will be looking for individuals who have demonstrated vision and leadership, shows innovation and not afraid to take risks. Finalists will be interviewed by a panel of judges the week leading up to the awards.

. .. .. .. . . . . . . . . . . . . . .

ENVIRONMENTAL EXCELLENCE AWARD This award recognises corporate leadership contributing to the solution of environmental sustainability within our industry through performance and action.

SUPPLY CHAIN MANAGEMENT AWARD The aim of this award is to encourage and acknowledge the outstanding achievement of an organisation that has demonstrated significant achievement in managing the integration of Supply Chains. This could be functional integration within an organisational Supply Chain, or more widely across Supply Chains involving several organisations that have formed trading partnerships or alliances. Collaboration and added value across the Supply Chain, achievements gained through outsourcing and the development of new business models could also be demonstrated. TRAINING, EDUCATION & DEVELOPMENT AWARD To be presented to the company or institution that best demonstrates a significant achievement in aspects such as recruitment process, training, HR Systems, formal education and development programs which is both relevant to and promotes the Supply Chain and Logistics Industry.

SUBMISSIONS ARE DUE BY FRIDAY THE 11TH OF JULY For more information please phone the SCLAA National Office on 1300 364 160 or email nsw@sclaa.com.au.

Joshua Holmes State President- NSW Division nsw@sclaa.com.au

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SCLAA NEWSLETTER JULY-AUGUST 2014

2014 QLD SCL AWARDS CLOSING SOON

he Supply Chain & Logistics Association of Australia, Queensland Division, in conjunction with Telstra Enterprise and Government, All Purpose Transport, apicsAU, Energex Limited, Leadership Management Australia, OfficeMax and Transpacific Industries Group are proud to present the seventh annual Queensland Supply Chain and Logistics Awards. Winners will be announced on Thursday the 4th of September during the 2014 Queensland Supply Chain & Logistics Conference. All finalists will be invited to attend the awards dinner.

QUEENSLAND FUTURE LEADERS AWARD

QUEENSLAND ENVIRONMENTAL EXCELLENCE AWARD

Sponsored by

The purpose of this award is to provide incentive and recognition to young professionals who are both currently working in and wish to continue their career path within the Supply Chain, Logistics and Transport Industry. This is a wonderful opportunity to showcase young professionals within our great industry. Finalists will be interviewed by a panel of judges the week leading up to the awards.

This award recognises corporate leadership contributing to the solution of environmental sustainability within our industry through performance and action.

$5,000 PRIZE NOW AVAILABLE: The winner of the 2014 QLD Future Leaders Award will be awarded an enrolment into the Leadership Management Australia’s ‘The Performance Edge’ 10 week development program valued at $5000. The program assists participants to improve their personal performance and productivity as well as that of their team. The prize includes consultation in the workplace, assistance in the development of some professional goals, all course material, attendance at 10 interactive workshops, facilitation and course coaching and access to LMA’s unique on-line feedback system.

The aim of this award is to encourage and acknowledge the outstanding achievement of an organisation that has demonstrated significant achievement in managing the integration of Supply Chains. This could be functional integration within an organisational Supply Chain, or more widely across Supply Chains involving several organisations that have formed trading partnerships or alliances. Collaboration and added value across the Supply Chain, achievements gained through outsourcing and the development of new business models could also be demonstrated.

Prize donated by QUEENSLAND INDUSTRY EXCELLENCE AWARD Sponsored by This prestigious award recognises and acknowledges the outstanding achievements and contribution by an individual currently working within the Supply Chain, Logistics and Transport Industry. The judges will be looking for individuals who have demonstrated vision and leadership, shows innovation and not afraid to take risks. Finalists will be interviewed by a panel of judges the week leading up to the awards.

QUEENSLAND SUPPLY CHAIN MANAGEMENT AWARD Sponsored by

QUEENSLAND TRAINING, EDUCATION & DEVELOPMENT AWARD Sponsored by To be presented to the company or institution that best demonstrates a significant achievement in aspects such as recruitment process, training, HR Systems, formal education and development programs which is both relevant to and promotes the Supply Chain and Logistics Industry. SUBMISSIONS ARE DUE BY FRIDAY THE 11TH OF JULY For more information please phone the SCLAA National Office on 1300 364 160 or email qld@sclaa.com.au

Proudly sponsored by

2014

SCLAA NEWSLETTER JULY-AUGUST 2014

QLD SITE VISITS UNDERWAY

Queensland Division has been very busy the last few months with an extensive line-up of site visits and events. A huge thank you to all the companies and speakers who have contributed this year so far and we look forward to many more events over the next six months.

BANDAG SITE VISIT

Grant Kindt – Sales Manager, Bandag

andag is the largest global manufacturer of tread rubber which is used in the process of retreading commercial tyres. All SCLAA Members who visited the plant in Wacol were able to see the manufacture of rubber compounds and the pressing of rubber which produces treads used in the Bandag retreading process. SCLAA Attendees were also taken to view a retreading facility where commercial tyres are retreaded. A thank you to Cliff Chillingworth and the team at Bandag for such a great visit.

AWH SITE VISIT

Tony Crebbin

Tayla Bush, Vanessa Clarke and Ryan Clarke (AWH Future Leaders)

WH Staff conducted a site visit of their Rocklea Warehouse with over 20 attendees split into two group for a 90 minute tour detailing how AWH efficiently processes wool, cotton and FMCG. Each of these products has seasoned variations posing many challenges in terms of storage, stock and turnover and even AQIS export requirements. The tour concluded with a display of the wool classification by machine and independent assessors. The SCLAA would like to personally thank Tony Crebbin and the team at AWH for a wonderful tour.

LOGISTICS LOUNGE

he Future Leaders Group recently ran a well-attended Logistics Lounge that was entitled “Improve your professional brand as first impressions last’. Over 50 Future Leaders heard presentations from Damien Harrison, Regional Manager VIC/ QLD/SA and TAS from LinkedIn, James McQuillan, Sales Recruiter (Supply Chain & Logistics), Davidson Recruitment and Linda Parker, Operations Manager from Eden Ritchie. National SCLAA Partner Impex Personnel also had the opportunity to showcase their new Job Index to all who attended.

SCLAA NEWSLETTER JULY-AUGUST 2014

PATRICKS AUTOSTRAD TERMINAL SITE VISIT

he Future Leaders Group had the exclusive opportunity recently to visit the Patricks Austrad Terminal at the Port of Brisbane. Patricks is currently the Port of Brisbane’s only fully automated stevedore following the introduction of stateof-the art Autostrad technology to its Brisbane terminal. The Patrick Brisbane Autostrad Terminal is located on Berth 10 Fisherman Islands within the Port of Brisbane. The Terminal covers an area of approximately 39 hectares and has a quay line length of 900 metres. It employs approximately 160 stevedoring employees and showcases the automated straddle carrier technology developed by Patrick in conjunction with the University of Sydney Centre for Field Robotics. A special thank you to Matthew Hollamby and the team for such a wonderful and exclusive site visit. Stay tuned as there will be a second visit later in the year for the SCLAA Members.

CHEP SITE VISIT

CLAA Members had the opportunity to visit the Chep Rocklea facility where they gained an understanding in how the CHEP Rocklea Service Centre operates including, safety management, quality control, pallet conditioning processes and customer vehicle servicing. A thank you to Jamie Woods for hosting the SCLAA site visit.

METCASH SITE VISIT

When: Thursday the 21st of August Where: Metcash Distribution Centre What: Metcash is Australia’s leading wholesale and marketing company specialising in Grocery, Fresh Produce, Liquor, hardware and automotive parts and accessories to Independent retailers. You will recognise such brands as IGA, The Bottle O, Mitre 10, Autobarn, & Campbell’s Cash & Carry to name a few. Metcash Logistics is the distribution arm of the business.

FOODBANK HAMPERS TO BE PACKED AT SCLAA XMAS PARTY When: Friday the 5th of December Where: Officers Mess, Victoria Barracks What: For the fifth consecutive year the SCLAA, Queensland Division, is up to the challenge of coordinating the supply and packing of 800 Christmas Hampers as part of their Christmas Party on 5th of December. Is your Company and are your employees up to the challenge of assisting with this project? The hampers will be distributed through Foodbank to Queensland charities prior to Christmas and will help make Christmas more enjoyable for those less fortunate than ourselves. Come and be a part of this special event. Partners, Friends, family and children are all welcome to participate in the hamper packing.

SCLAA NEWSLETTER JULY-AUGUST 2014

Vince Aisthorpe State President - Queensland Division qld@sclaa.com.au

WESTERN AUSTRALIAN DIVISION

he focus during May in WA has been on the Energy Efficiency Workshops in Bunbury and Perth. These were part of a national federally sponsored program delivered by a team comprising a partnership between the SCLAA and ClimateWorks Australia. The workshops were excellently presented, highly interactive, well received and supported by a wealth of material. They attracted both the targeted end users from Small and Medium Enterprises in the Transport and Logistics sector, energy suppliers and those keen to assist the end users in implementing the recommendations of the sessions. For those unable to attend these sessions, additional one-to-ones and webinars were scheduled. The workshop material is also available on line from a dedicated page on the SCLAA website in a series of webinars, than can be viewed live or retrospectively.

In addition to the EEIG events, in early May there was a repeat of the fully subscribed April event; a full house showed up to the breakfast event at Burswood sponsored by RTO Solutions covering the revised Chain of Responsibility Legislation that is due for implementation in October. Paul Bond and Leigh Farrow from Main Roads spoke about the impact of the compliance regime for all members of the Supply Chain. With regard to upcoming events, a 3PL breakfast and site visit to Western Power’s Jandakot DC are both scheduled for July. Both should prove very popular, so watch out for flyers and book early. Equally popular is the Annual Golf Day, now locked in for the 10th of October.

Daniel Di Stasio State President - WA Division wa@sclaa.com.au

SCLAA ADVERTISING OPPORTUNITIES STRAIGHT TALK WITH DAVID DOHERTY

SLETTER A NEW 4 SCLA RCH 201 N ARY - MA

NATIONAL

t the 2013 Australian and personal principles and integrity. I didn’t meet too many people Supply Chain and Logistics of that ilk but I learned lifelong lessons from those few great Awards last November I had people. the honour to publicly d announce that the long standing I have just read a book titled ‘DRIVE’ authored by Daniel H. and I woul Future Leaders Award would now be Pink. The cover promises the book will expose, “The Surprising support herson and for their dedicated to Vince Aisthorpe. I said, Truth About What Motivates Us”. It was recommended to me them the Board n of Steve MacP FEBRU to thank ibutio the Board and wish “Vince Aisthorpe is now perpetually by David Parkin OAM, a tremendously successful and decorated business g would like dge the contr and I te A leavin recognised by SCLAA, and universally AFL Coach. He said if he had read DRIVE before he started be priva bership like to acknowle in their the various SCLA will also by industry, as an inspiring, challenging, coaching he would have utilised significantly different strategies ca who is interests at to the mem John LaVac pursue other to seeing you courageous and tireless champion of and attitudes. Pink debunks the long held business reliance unication titution my time the comm they at ard year. as on cons my last young people and aspiring Future on carrot and stick management and proposes that autonomy, ous well So I look forwyou a successful under the will be voted his will be Leaders”. purpose (a greater than yourself purpose), and mastery are key rman as new Chairman to you in my previhad lives. Vince Aisthorpe and wish a as Chai ions LAA ted and components of future leadership. I recommend you get the the funct indica completed meeting. I discussions with nce and legal rs The permanent tribute to Vince is well deserved. He has book now, study it, and share it with your colleagues. dilige now David Roge March Board the merger ing due made a unique contribution to the Supply Chain and Logistics leted by tion that we are await this comp new Board Chairman for more than twenty years. Of course he will be remembered The Supply Chain and Logistics Profession has many very communica and currently d to have had With the wed as a genuine leader. effective leaders with years of experience. The challenge is to commencedso I had hope not be the case.tives will be revie with inspire and provide opportunities for aspiring Future Leaders continue advice andtunately that will March all initia that they ssion, industry 1st The definition of leadership often assumes an historical view who can embrace the new paradigm for leadership. The old but unfor g from the and I hope of macho toughness, overconfidence, charismatic, and ultimate ways will not suffice as we head into volatile uncharted waters in for the profe gic plan rtant commencin strate the is impo decision making in a driving pursuit for results. The Search Inside terms of technology and restructuring of industry, and perhaps as part ofer as I believe it members. the next Yourself Leadership Institute suggests that,” leaders might lead capitalism and democracy. The SCLAA and other Associations s. Over the merg important the al cities. Workshop through official authority and power, yet just as often great leaders Awards for Future Leaders are very valuable. 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Many SME’ ered the conte y de provi energ A deliv energ menting e, cool While Peter Drucker determinedly stated, “The only definition ce their shops will etitive adva the SCLA and imple The work mation to reduove their compfore imperative hous of a leader is someone who has followers ” infor , evaluatingtransport, warebe available impr It was there and Let me have your thoughts on leaders and leadership. and ifying rs will ident liers the tools g business a week. that cove tool which guide to doin The findings and assessments from other studies indicate Email:davdoh1@optusnet.com.au ples of supp a 4 step calculator gs. The cost of times seven days clearly. provides energy saving potential savin case studies, exam and there are certain characteristics or traits that good leaders some nctly which and tool, gh an n succi guides, ties and possess. 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The best leaders I have known building with Gree me appa at 7.30 am rooms / the end of Febru ble to SME’s were unselfish, empathetic, empowering of others, purposeful, by it has beco ess includingshops will startrks Australia, who on-line ls on grants availa busin lopment, inspirational, learners, mentors, and respectful with unshakeable nt deve savings in the SME’s most work er ClimateWo content. and detai tary and conte assist thank its partn ering the research to other mone service. To s to be deliv mer lead industry A wishe and will During ties that also oving custonar. The SCLA developed impr rtuni for have oppo rtunities available by webility Institute, be plus oppo Sustainabi will also am and of the Monash If you are 30 years of age and under and looking to build your knowledge and both part career then the SCLAA Future Leaders Group can work for you.

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SCLAA NEWSLETTER - FEBRUARY-MARCH 2014

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he SCLAA provides opportunities for your company to partner with the Association through their e-newsletter. The package include advertisements, company articles and regular news from partners in the e-newsletters. The SCLAA e-newsletter is bi-monthly and is designed to keep Members abreast of all SCLAA events and industry news across the country. The newsletter is available via email and on-line six times a year. For more information about advertising in the SCLAA e-newsletter email editor@sclaa.com.au

SCLAA NEWS

LETTER - FEBRU ARY-MARCH 2014

SCLAA NEWSLETTER JULY-AUGUST 2014

MARK THESE DATES IN YOUR DIARY

2014 Queensland

Thursday 4th & Friday 5th September Sofitel Hotel Brisbane

THE KEY TO SUPPLY CHAIN SUCCESS More than 4500 delegates from across Australasia have attended the Queensland Supply Chain & Logistics Conference in its 15 year history. Will you be among them in 2014? The Queensland Supply Chain & Logistics Conference aims for professional and personal development in a relaxed environment. The theme of The Key to Supply Chain Success continues a conference tradition of focus on relevant practical challenges for the practitioner in today’s market. This conference is a national event for everyone in the industry to attend. Proudly Supported by

STEP Supply Chain Training & Evaluation Professionals

office of Economic Development

Hosted by

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( 1300 920 439

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Join the QSCLC Group on

2014 Thursday 27th of November 2014 Melbourne Cricket Ground (MCG)

The Supply Chain & Logistics Association of Australia (SCLAA) is pleased to announce that the 2014 Australian Supply Chain and Logistics (ASCL) Awards will be held on Thursday 27th of November, at the Melbourne Cricket Ground (MCG). The SCLAA has been running these proud and historic awards for over fifty years, making them the most prestigious and influential in the Supply Chain, Logistics and Transport industries. This is a not-to-be-missed event in the industry calendar. Nominate yourself, your company or a colleague and be recognised by your peers in this historic award program.

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PH: 1300 364 160

ascla@sclaa.com.au