March
SCLAA NEWSLETTER
2016
MARCH - APRIL 2016 p: 1300 364 160
e: secretary@sclaa.com.au
w: sclaa.com.au
In this edition
New National Partners Effect of economic environment Logisticians save lives with Red R What’s happening in your Division?
We keep you moving
We are a member based organisation, run by volunteers. At our very core is our mission to serve and advance the interests of Supply Chain and Logistics professionals and practitioners in Australia. We do this through the development of the profession and practice, collaboration with industry stakeholders and promotion and recognition of world’s best practice. In 2015 for the first time, half of our State or Division Presidents are women and the SCLAA actively promotes women in the supply chain.
Your Association The Supply Chain and Logistics Association of Australia (SCLAA) is Australia’s largest association for Supply Chain and Logistics professionals and practitioners. We have over 8,400 members and industry contacts. Our proven history, governance framework, established representation, value for money and strategic reach to make us the right choice for you.
Join the SCLAA For more information on how to join the SCLAA go to sclaa.com.au or follow us on
Mark Skipper
Chairman’s report Happy New Year to all members and Industry Participants. Congratulations
to
all
2015
Award
Nominees and Winners at the Australian Supply Chain and Logistics Awards
Mark Skipper is Chairman of the SCLAA. With over 37 years of experience as Executive and Non Executive Company Directors Mark has supply chain and logostics experiece in both consumer and customer facing industries.
(ASCLA) that we held in Sydney in late November.
Details on the Award
finalists, winners and those with high commendations are on our website under the About Us Awards tab http:// sclaa.com.au/about-us/awards/.
This
year the 56th Australian Supply Chain and Logistics Awards (ASCLA) will be in Brisbane in the second half of November, details will be available soon. With the consolidation that has happened in our Industry we are now the only Association
In Supply Chain event in April, details on that soon as well.
with annual awards.
Margins are tight in the supply chain
Divisional Committees
an interesting report recently. Statistics
The Divisional Committees have been busy organising events for 2016 across Australia and we will email you details of events in your area and nationally as they are finalised. We are planning a Women
and logistics industry and I was reading obtained by the Australian Federal Police show fraud losses from staff and former staff are costing Australian businesses over $1.5 billion a year.
Industrial theft can be a major problem. Anthony Goslin, at DataDot Technology, says the lack of information available on the impact and real cost of industrial theft, “we have found that there is a lack of measurable data on industrial theft. This has made it harder for businesses to recognise theft trends and implement strategies to combat the issue.�
Industrial theft can be a major problem for all kinds of businesses. For example, utilities, miners, builders and even schools can all suffer. Expensive tools, equipment, machinery and materials are costly to replace and the resultant project delays and downtime can be devastating.
2
SCLAA Newsletter March 2016
In association with Crime Stoppers NSW,
don’t know what you don’t know, and as
We encourage you to participate in the
a survey has developed the first ever
respondents add their own experiences
survey, and forward the link to any of
Industrial Theft Survey. The aim of the
to the survey, a more accurate picture of
your colleagues who you think would also
survey is to gather information on what
what is going on will start to form.
be able to contribute valuable input and
businesses are dealing with, how they are being impacted, and what current strategies they are using to combat industrial theft.
Participation and receipt of a summary report from the survey is free of charge and
without
obligation.
benefit from receiving the report. We are all volunteers at the SCLAA and
However,
we would appreciate an injection of fresh
respondents must participate in the
ideas across the country, so please put
It is hoped that as the number of
survey (which will take less than 5
your hand up to join your local State
respondents grows, so too does the
minutes) and provide their email address
Division’s Committee.
quality of the data which can then be
in order to receive the report (via email).
career exposure as well.
used to benchmark theft and recovery rates and develop strategy and solutions to minimise or even eradicate the impact of theft to business. Quite simply you
Great for your
The link is to the survey is as follows: ht tps://w w w. sur veymonkey.com/r/ Q7G562K
SCLAA offers Partners: • Brand association with profession initiatives • Brand recognition through the national newsletter, web-site, stationery and event brand exposure
• Input into strategic direction of the association through a structure scheme of consultation at national and state level • Membership benefits
Expand your knowledge... Extend your vision... Become a NATIONAL PARTNER of the SCLAA
SUPPLY CHAIN PTY LTD
PH: 1300 364 160
secretary@sclaa.com.au
www.sclaa.com.au
SCLAA Newsletter March 2016
3
New National Partner Infosys
Infosys Portland has been helping organisations grow and take cost out of their businesses for 16 years. Over this time we have worked with around 300 organisations addressing more than $65Bn in spend and saving in the order of $5Bn annually through improving the efficiency and effectiveness of their supply chain and procurement activities. We work with closely with our clients to identify, implement, and manage supply chain and procurement improvement from large scale transformation programmes to targeted cost reduction initiatives.
https://www.infosysbpo.com
in the marketplace, assist growth and deliver an improved bottom line. We understand the trade-offs that are key to delivering a world class supply chain, however our clients typically benefit from improved customer service, reduced inventory, lower freight, manufacturing and warehousing costs with a reduced carbon footprint. We typically deliver 5–10 times your investment in our services.
Infosys Portland Difference Our singular focus on supply chain and procurement coupled with our ability to attract and retain outstanding people, has
Infosys Portland has around 190 employees from diverse
allowed us to differentiate our service offerings from more
cultures and geographies. Our global footprint, with offices in
generalist competitors to become the supplier of choice to a
Sydney, Melbourne, Brisbane, Perth, Auckland, Singapore and
number of Australia’s most successful companies.
Pune, allows us to service clients throughout the Asia-Pacific region.
•
We operate across the whole scope of the supply chain function, including cost to serve, strategy development,
In 2012 we were acquired by Infosys Ltd one of the world’s
supply chain planning, network optimisation, procurement,
leading technology, outsourcing and consulting groups with
warehousing, freight, inventory management and master
revenue exceeding $9Bn and 190,000 employees with offices in
data management
33 countries globally including India, USA, China, UK, Canada and Japan.
•
senior industry operational experience with leading-edge
Supply Chain
consulting skills so that supply chain strategies are not only developed but effectively executed
The supply chain team fully understands the link between supply chain and overall business performance and is
We recruit and employ our own staff that combines
•
As part of a large global IT & BPO organisation we have
passionate about delivering improved profitability to our
the footprint to deliver services through a global delivery
clients. Our experienced team effectively blends supply
model with a combination of onshore and offshore
chain operational and consulting experience assisting clients
resources tailored to your requirements
in the development of supply chain strategy, supporting implementation and directly managing elements of supply chain operations to realise sustainable benefits.
Benefits to You Organisation
•
We provide advanced technology solutions and tools to enhance visibility and sustainability of benefits
Contact our Director of Supply Chain directly if you would like to understand how we can leverage technology, supply chain
We will help your organisation understand, develop and deploy
consulting, procurement and outsourcing to make you more
supply chain strategies that will improve competitiveness
profitable and competitive: SCoates@InfosysPortland.com
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SCLAA Newsletter March 2016
New National Partner SCAA
www.scaa.com.au/
SCLAA welcome Secure Communications Advisors Australia as its latest national partner. SCAA offer award winning leading Wifi and Communication solutions to the Supply Chain and Logistics industry. SCAA is the only certified Australian direct partner for the Allied Telesis Extricom (ATW) channel blanket solution. We are often asked “How does your product differ from current
unlike other mainstream (no names mentioned) vendors in the marketplace. It grows with you. Again, it’s a unique positioning for SCAA. Communication systems have many hidden costs that aren’t immediately visible on spec. Looking at the total cost of ownership over the lifecycle of the chosen technology is unfortunately often overlooked by IT and Financial Managers because of hidden and unforeseen costs that you typically don’t think of when you buy a new system and aren’t readily disclosed by the vendors. The ShoreTel solution provides clear visibility from day one.
mainstream products?” says Director Simon Bajayo. The short
We encourage our customers to consider the lowest total cost
answer is “We thrive in complex RF environments where others
of ownership over a minimum of five years in the industry and
fail.
provide as much transparency in this regard as possible as . (See
It’s simple, our product delivers seamless interference free, large scale blanket Wifi coverage, with ease of deployment and simple, low cost management that the competition just can’t match. We can scale to over 100,000 sqm in a single system and offer wireless redundancy and roaming free operation, which is very unique. We found that existing Wifi solutions from the major vendors all had common shortfalls around consistent coverage and interference in warehousing environments, that impact productivity, customer service and leaves the user feeling frustrated and disconnected. ATW has been specifically designed for complex building structures and can be deployed in refrigerated and dry warehouses, regardless of indoor or outdoor environment.
Nemertes independent 2015 IP Telephony Market Report http:// tinyurl.com/ShoreTel-Nemertes). Typically phone systems aren’t replaced as often as IT infrastructure and on average are kept for more than eight years. ShoreTel regularly innovates and improves its systems, providing access to the latest technology available to its customers, which continually adds value and enhances the customer ROI. ShoreTel is a software based single image system. This means that as new features are released you are able to deploy and utilise them without having to rip or replace. If you had purchased a ShoreTel system seven years ago, you would still be using the same infrastructure today with all the new features and functionality available to the market, that wasn’t available then. This is a key point of difference. If you had a competitor’s product, you would’ve had to replace
Importantly, because of our channel blanket coverage design,
the entire system through the hardware becoming obsolete or
the need for mobile devices to roam between access points
the vendor not being able to upgrade.
is negated.
This vastly improves AGV performance.
Our
customers love it.
Our business motto is clear we provide ‘Brilliantly simple wireless and communications that work.’
We make our
For telephony solutions SCAA is a ShoreTel champion partner.
technology fit your business, not your business fit our
ShoreTel is a major player in the unified communications
technology. We are delighted to become a Partner with SCLAA.
market. We chose to partner with ShoreTel because they are
There’s fit beyond the name association and we look forward to
established, cash positive and truly innovative. The ShoreTel
having dialogue with its members to demonstrate that.
solution’s point of difference is that it is a single image system that allows ease of management. What this means is whether you have 10 or 10,000 users across 1 or 500 locations, the platform remains the same. It’s scalable and not rip and replace,
Contact us for further information or organise an obligation free review of your current warehouse and office communication infrastructure. www.scaa.com.au | 1300 762 277 | info@scaa. com.au
SCLAA Newsletter March 2016
5
Logisticians save lives with RedR Australia Providing advice on the packaging of nutritional supplements for children in drought stricken Ethiopia, developing distribution plans for lifesaving medical equipment during the Ebola epidemic in West Africa and procuring Dignity Kits for female refugees arriving in Greece are just some of the tasks RedR Australia’s logistics experts undertake in the course of a normal work day. A leading humanitarian agency for international emergency relief, RedR Australia responds to natural disasters and conflict-induced emergencies by providing skilled people and training to help communities rebuild and recover in times of crisis.
Logisticians are some of the most important people on the ground during a crisis as food aid is often required along with the storage and distribution of non-food items like shelter plastic, blankets, cooking equipment, soap and jerry cans to collect drinking water and to keep it safe from contamination. RedR’s logistics experts are deployed to work with their United Nations partner agencies which include the United Nations Children’s Fund (UNICEF), the World Food Programme, the World Health Organisation and the United Nations High Commission for Refugees. “Right now we have logisticians working in Ethiopia, Malawi, Greece, Serbia, Thailand and Laos,” RedR’s communications advisor Katrina Peach said, adding that they are usually sent at the beginning of a crisis for three months. Hayden Pickering (pictured second from the left with UNICEF employees) 6
SCLAA Newsletter March 2016
is currently supporting UNICEF in Ethiopia where El Nino related drought and floods have struck different parts of the country. He’s developing standard operating procedures for UNICEF’s warehouses and implementing quality assurance processes on the packaging of therapeutic food for malnourished children. “The El Nino weather pattern has caused a drought in the east of the country and has resulted in food shortages here. In Ethiopia, 435,000 children are at risk of severe acute malnutrition and over 10 million need food aid urgently,” Hayden said. “This is a varied job and it’s really rewarding as I know the advice I provide and decisions I make can actually save lives,” the 34 year old said. “This month, I’m redesigning the existing warehouse and designing a new one. I’m also reviewing transport companies that can provide distribution services for our food aid and looking into improving the safety standards and equipment available for the warehouse staff,” he said. “My job also involves mentoring the Ethiopian national staff on logistics methods, which on a personal level is very rewarding.”
RedR Australia will be recruiting more logisticians to join their register of experts next month. Applications will
be open for two weeks from 1st March and you can find more information about the opportunity to use your skills in the humanitarian sector on RedR’s website at www.redr. org.au. RedR will also be running their internationally recognised Humanitarian Logistics in Emergencies course in Victoria from 28th Feb – 3rd March. Places are still available in this annual five day course which provides an overview of logistics in humanitarian emergency operations. A highly practical course, it equips and refreshes individuals with the background and knowledge to apply logistics skills through a combination of on-site visits, exercises and scenarios. Hayden Pickering will be joining the course by skype to provide participants with some real time insights into working in the field.
Straight Talking
David Doherty OAM David Doherty OAM is a past President
4.
Know yourself first. apply yourself to moving away from things
5.
Platinum Rule: Everyone knows the Golden Rule: “Do unto others as you would have them do unto you”: Conversely the Platinum Rule Is, “Do unto others as they would have you do unto them”.
6.
A critical success factor is ”BOS”; (Be of Service). Finding ways to be of service will create success.
7.
MAD (Make a Difference) Focus on making a real difference with all your endeavours and thoughts.
8.
Always move towards what you decide and want to do- instead of bogging down on moving away from things.
9.
The beliefs we have about events shape us-not the events themselves.
and Life Member of the SCLAA and a highly regarded logistician. Send your Straight Talk feedback and comments to davdoh1@optusnet.com.au
Would you lie or cheat to achieve something you want? I suspect most people have indeed done so at times. I am a little ashamed to admit to fibbing on the odd occasion in the past. More importantly, the Community seems to be attuned to accepting some forms of dishonesty on the basis that ”everyone does it”, or “the ends justify the means”. Last week my spam filter collected eighty-seven bogus messages promising all sorts of rewards if I clicked on a link. Many of these messages purported to come from reputable organisations. Those blatant fraudsters have no sense of decency, and the scams continue in ever increasing numbers. Dishonesty is rampant amongst this global network of scamming liars. Something must be done to eradicate the barefaced deceit. Collaborative Supply Chains allegedly rely on trust as an enabler for the essential partnering relationships. However, the debate usually focuses on whether we can trust other people. Of course it must be a two-way street. We do need to be able to trust other Chain participants, but it is mandatory for you to also be trustworthy. Lying and cheating kills trust!
Have we allowed our Supply Chains to be contaminated by dishonesty and cheating? Hopefully in your world Supply Chains can stand up, without exception, to the necessary tests for integrity, honesty and decency. It is up to you!
A past mentor of mine frequently reiterated the critical importance of displaying and living up to your principles 24 hours a day, every day. Authenticity is a critical personal success factor that derives from “consistently living your principles”.
Again it is up to you! I learned recently about the word “confabulation”. Apparently it means that fibs or pretences repeated often enough can become to be believed in memory as real facts. Perhaps you have personally experienced confabulation in in your life. Lying or masquerading to yourself may be the most crucial defect of all. Trusting yourself is a key to gaining self-respect and the trust of other people. This preamble brings me to the real intent of this Straight Talk Column. I want to emphasize my passion for mentoring, as well as my consuming interest in people (Supply Chain people included) taking real responsibility for their own development and wellbeing. Two weeks ago I discovered a book titled ”Breakthrough“, authored by David C.M Carter. He is cited as being a world leading Mentor. Amongst many excellent hints offered by Carter I unearthed the few following points as being most relevant for me (as interpreted by me). 1.
Consistently and rigorously focus on being the best version of yourself that you can be. Reiterate every day.
2.
Do the right things the right way all the time?
3.
Build the Brand that is “YOU”
10. Count the moments in life that take your breath away. Cherish those moments. 11. Make a decision to win the game of life. 12. Always think and speak positively 13. Seek to understand rather than condemn 14. Determine what legacies you want to leave for the next generations. 15. Get hold of Carters book and work through it carefully. It will benefit and comfort you as you build the rest of your life. In summary I suggest that honesty, integrity, empathy and compassion are not old hat or passé. Those qualities and related mindset may well make you a Supply Chain Champion. Adopting Breakthrough thinking may be a catalyst for a more productive and thriving life.
“Procrastination is the art of keeping up with yesterday” (Don Marquis)
SCLAA Newsletter March 2016
7
Effect of the Economic Environment on Supply Chain Performance Sharyn Grant
Key Findings - Within the economic environment (during a downturn), organisations that fail to develop highly competitive supply chains and proactively address risks and issues adequately through mastering supply chain resilience capabilities before, during and after a downturn, in close collaboration with supply chain partners, will be less competitive and will be subject to underperforming supply chains. Such supply chains will be subjected to demand risk, supply risk, unavoidable risk/threat events, reduced cash flow and an inability to meet customer demand. In contrast, proactive supply chains with the ability to anticipate economic downturns, contain costs, eliminate waste, manage risk, eliminate vulnerabilities, reduce lead-times and maximise utilisation of existing resources, will produce supply chains that excel in efficiency, flexibility, adaptability, responsiveness and cost mastery. Introduction This paper studies the macro environmental influences and business forces that drive supply chain performance from the perspective of the economic environment. It critically analyses the effect of the economic environment on supply chain performance, identifies positive and negative impacts, and examines the effect of a downturn such as a recession on supply chain performance. It identifies how organisations have been impacted and the types of strategies they employed to cope through the downturn. This paper also examines the outcomes of the strategies implemented and identifies ways to improve supply chain performance within the economic environment.
Improving Supply Chain Resilience Capabilities A major challenge for organisations and their supply chain networks is to survive 8
SCLAA Newsletter March 2016
the effects of the economic environment during a downturn by improving supply chain resilience to unavoidable risk/threat events through adaptive capabilities; and by reducing supply chain vulnerability to avoidable risks through risk management. The effect of the economic environment on supply chain networks can be catastrophic, impacting significantly on supply chain performance which can inevitably come to a standstill. Companies are forced to look inwardly to reduce costs and outwardly to increase the efficiency of their supply chains networks. A study undertaken by Jűttner and Maklan (2011) observed that when the 2008 – 2009 global financial crisis caused a recession, this triggered a demand risk, which was then followed by deflation with prices plummeting, causing supplier insolvencies which triggered a supply risk. Jűttner and Maklan (2011) found that in order for organisations and their supply chain
partners to survive and maintain supply chain performance when impacted by an unavoidable risk/threat event, the supply chain must apply adaptive/supply chain resilience capabilities such as supply chain flexibility, velocity, visibility and collaboration – through three disruption phases: Readiness, Responsiveness and Recovery (hence – before, during and after the event). Their study involving three major companies identified that the companies and their supply chain partners coped during the financial crisis by sharing risks; hedging risks through redundant resources; and by using supply chain risk knowledge management. The strategies and actions deployed by the case study companies are provided in Table 1, which also identifies which of the supply chain resilience capabilities (or supply chain performance capabilities) their risk management strategies had a positive impact.
Table 1: Supply Chain Risk Management Strategies Risk Management Strategies:
Sharing Risks • Index-based pricing
Actions To Deliver Strategies:
• Joint business continuity plans
Positive Impact on Supply Chain Performance:
Hedging Risks through Redundant Resources
Supply Chain Risk Knowledge Management
• Regional distribution centres or warehouses
• Formalised supplier risk management process
• Outsourcing agreements
• Decentralised supply chain • Human resources management organisation dedicated specifically to supply chain risk • Dual and/or multi sourcing management
• Supply Chain Flexibility
• Supply Chain Flexibility
• Supply Chain Visibility
• Supply Chain Velocity
• Supply Chain Visibility
• Supply Chain Collaboration
Table 2 identifies the strategies these case study companies deployed within each of their supply chain resilience capabilities, which resulted in a positive impact and allowed the achievement of targets for revenue, cost and lead time/availability.
Table 2: Supply Chain Resilience Capabilities & Strategies Resilience Capabilities:
Supply Chain Flexibility
Resilience Strategies:
• Response to unpre- • Quick response dictable demand to unpredictable change demand change
• Shifting to cost-effective supply sources
• Shifting to cost-effective supply sources
• Counteractive measures to avoid non-availability
• Optimised capacity utilisation
• Optimised capacity utilisation
Positive Impact on Supply Chain Performance:
• Revenue targets
Supply Chain Velocity
• Revenue targets
• Cost targets
Supply Chain Visibility
• Cost targets
Supply Chain Collaboration • Lower sourcing costs • Counteractive measures to avoid non-availability
• Cost targets
• Lead time/availabil- • Lead time / availity targets ability targets
Supply chains that do not have supply chain resilience capabilities designed into their supply chains to cope with the effects of the economic environment, will suffer catastrophic consequences as a result of demand fluctuations, price fluctuations, supply variability, non-availability, underutilised assets, bottlenecks, high uncertainty and supplier insolvency. In contrast, Pettit, Croxton and Fiksel (2013) found a positive correlation between resilience and supply chain performance, but also found that careful evaluation of supply chain resilience capabilities in the first instance is required to address the gaps identified which avoids eroding profits when investing in
capability development as improvement is targeted. Evaluating and improving supply chain resilience capabilities has resulted in significant savings, improved supply chain performance, enhanced readiness and has increased supply chain competitiveness during stable and unstable environments.
Table 3: Supply chain changes made during recession Supply Chain Changes During Recession Reduction in employment (including reduced hours) Decrease in total stock levels Other changes – including: •
Logistics cost reduction and waste elimination
•
Improvement in logistics processes
•
Review of supplier contracts
• Price changes (increases & decreases) Leaner WIP inventories More local supplies Reduction in product lines Increased use of 3PL and warehousing Decreased use of 3PL and warehousing
% of respondents 21% 17%
17%
12% 10% 8% 8% 6% SCLAA Newsletter March 2016
9
Increasing Efficiency
Supply
Chain
Bentley and Castro (2012) also discovered a wide range of supply chain strategies focused on reducing costs and increasing efficiency and productivity, were implemented by the companies they surveyed during the recession. The two-year study during the recession (involving 316 logistics/supply chain professionals; mostly within United Kingdom) identified that by the end of the first quarter of the recession, 30% of survey respondents on average were making or planning logistics/supply chain changes within their companies as a result of the downturn; which increased to 56% on average by the end of the second quarter. Some companies delayed acting until they knew more about the severity of the impact or they had anticipated the financial crisis. The changes that took place at these companies in response to the recession are identified in Error! Reference source not found. (Bentley & Castro 2012, p.25). These companies were impacted by the recession in a number of ways including: •
Suppliers reducing service levels which caused contract cancellation and increased supply risk
•
Customers delaying payment impacting cash flow of suppliers
•
Reduction in infrastructure (including warehouse consolidation) to increase cash flow
•
Reduction in employee numbers to increase cash flow
•
Utilising a range of spend reduction strategies including reducing services and tightening budgets
•
Reduction in parent company subsidies
ways to increase productivity at the least cost through better inventory control and removed costs from the supply chain by eliminating intermediaries which also resulted in reduced lead times. The economic environment when in a downturn also presents significant opportunities for the strongest of companies to take advantage the opportunities available including reduced prices, available labour/expertise, infrastructure for auction etc.
Conclusion Within the economic environment (within a downturn), mastery of supply chain resilience capabilities before, during and after a downturn, in close collaboration with supply chain partners is recommended to enable the establishment of highly competitive supply chains due to their ability to anticipate the downturn, contain costs, eliminate waste, manage risk, eliminate vulnerabilities, reduce lead-times and maximise utilisation of existing resources. If resilience capability development and ongoing risk management adequately addresses economic downturn risks and issues, then supply chain performance will excel in efficiency, flexibility, adaptability, responsiveness and cost mastery. Failure to master resilience capabilities and address risks and issues adequately within the economic environment (within a downturn) will result in less competitive underperforming supply chains due to being subjected to demand risk, supply risk, unavoidable risk/threat events, reduced cash flow and an inability to meet customer demand.
Author - Sharyn Grant, Supply Chain Value Creator
10
SCLAA Newsletter March 2016
Over 100 firms and 1400 executives have relied on the company’s best practice supply chain solutions, across 200+ projects identifying over $1Billion in opportunities. Operating Australia-wide, the company boasts a solid team of 20 independent consultants, coaches and trainers plus 5 support team members, to help Australian companies become globally-competitive through world-class supply chains and operations that continuously create value.
References • Bentley, Y & Castro, J 2012, Supply chain management in difficult times, Logistics & Transport Focus, vol. 14, no. 5, pp. 22–27. • Jűttner, U & Maklan, S 2011, Supply chain resilience in the global financial crisis: an empirical study, Supply Chain Management: An International Journal, vol. 16, no. 4, pp. 246–259. • Pettit, TJ, Croxton, KL & Fiksel, J 2013, Ensuring Supply Chain Resilience: Development and Implementation of an Assessment Tool, Journal of Business Logistics, vol. 34, no. 1, p. 46–76.
INDUSTRY ALERT Changes to the Heavy National Law & Regulations The latest amendments to the Heavy Vehicle National Law and Regulations took effect on Saturday 6 February 2016. Key changes include: Alignment of vehicle standards for new and in-service vehicles
Leaner and more efficient supply chains and operations have been created as a result of the recession, in addition to maximising resource utilisation, reducing spend and even major transformations to optimise entire operations. Whilst companies were affected significantly, supply chain performance improvements were also being achieved as a result of being forced to find ways to survive the downturn. Companies found
Creator. Sharyn established her company 12 years ago and since then has been the only female-led supply chain management consulting company in Australia.
new penalties that are consistent across all HVNL jurisdictions formal recognition of electronic work diaries, paving the way for their rollout in 2017 The adoption of electronic work diaries is voluntary and is currently planned for 2017. Sharyn Grant is the Managing Director of LSC Solutions and the Supply Chain Value
Visit our website for more information and a vehicle standards guide outlining the changes.
New South Wales
Division Report Joshua Holmes President
Sean Fahy, Tom Finch and Matthew O’Keefe. at the Blackwood Distribution Centre.
On November 17, NSW Members visited the Blackwood’s Distribution Centre at Greystanes. This site was the 2014 ASCLA Storage and Material Handling Award. This Blackwood’s Centre is recognised for Australia’s first new generation multishuttle storage buffer and sequencing system with Goods to Person picking. The site uses Dematic’s Multishuttle Store and Buffer Sequencing System for Goods to Person picking, ergonomic goods to person picking, integrated check weighing, voice directed picking, longspan shelving and
pallet live storage, hugh rate picking and carton live storage. The Blackwoods Greystanes DC consolidated two DC totalling 23,000 dqm into one new DC of 14,000 sqm, allowing 1,000 totes an hour, sequencing of SKU picking to optimise order assembly, better inventory management, check weighing, cycle counting, error free put away and reduce stock outs. Thanks to Blackwood’s and Dematic for allowing the SCLAA to visit this amazing award winning DC.
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Wasted time ?
Poor coverage ?
Dropped calls ? Unplanned downtime ?
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Call 1300 762 277
info@scaa.com.au | www.scaa.com.au
SCLAA Newsletter March 2016
11
ACT & Southern NSW
Division Report Gary Pearce President
ACT and Southern NSW plan a strong 2016.
Plans are already in place for a meeting of the current membership on 25th of February, aimed primarily at:
It is probably fair to say that the ACT and Southern NSW Division has been in something of a “holding pattern” for some time, due to a relatively small membership and too few members able to devote the time and effort needed to promote the Association and our goals within this region.
•
In December last year I was asked to step into the role of interim President due to the retirement of Allan Jones from the position for personal reasons. I would like to pass onto Allan the sincere thanks and appreciation of the Division for his tireless efforts in recent years to get the Division out of the “holding pattern”. On a personal note, I am grateful that Allan has agreed to stay on in a supporting role for the foreseeable future. There have also been offers of support from existing members at National Mailing & Marketing, Toll Customised Solutions and Canberra Airport, which is very encouraging. These early signs of enthusiasm and commitment auger well for 2016. As a result, an interim Committee has now been formed to set in place an ambitious short term agenda for the Division. The ACT/Southern NSW Division is planning for a more inclusive and dynamic year. We will be asking all members to play a more active and constructive role in fostering the vision and values of the SCLAA. At the heart of this will be our local objective to improve the overall quality of supply chain service delivery in the ACT/SNSW region, to the benefit of each member’s respective business, our own clients, our client’s customers, the local business community and the local economy in general.
• •
• •
Election of a new Committee or endorsement of the interim Committee, including nominations for additional committee members; Discussions regarding the division’s future direction and focus; Plans to increase membership through a targeted membership drive (to determine the best target industries and strategic approach); Discussions around the skills and resources each member can bring to the group; and Discussions on preferred events the group would like to see (including regular member meetings, networking events, training programmes, presentations to the broader business community, etc).
Work has commenced on developing a database of prospective organisations within the region to be targeted for membership. Once this is finalised the division will send each of these businesses a “New Member Pack” to encourage them to become members of the SCLAA. In addition, the interim committee has already discussed a number of organised events and potential guest speakers for the first half of 2016. The future for the ACT & Southern NSW Division looks bright, providing we can maintain the support of the current member group and expand the membership by attracting enthusiastic business partners who are willing to commit time, effort and resources to the Division.
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Begin a partnership with us. Call today +61 (0)2 9210 4399
12
SCLAA Newsletter March 2016
info@InfosysPortland.com
Canberra Freight Symposium Gary Pearce President of the ACT The event was attended by a broad range of people from federal, state, territory and local government and southern NSW division recently agencies, export businesses, and people in the business attended a Freight Symposium held by of manufacturing growing products export.presentations were Interestingorscene-setting and for keynote Canberra Freight Symposium the Canberra Airport Group (CAG). The Interesting scene-setting and keynote presentations given by Canberra Airport MD, Stephen Byron, the outgoing were given by Canberra Airport MD, Stephen Byron, Minister for Trade and Investment, the Honthe Andrew Robb, theme was “Up. Up and Away! Exporting outgoing Minister for Trade and Investment, the Hon Minister for I recently attended a ‘Freight Symposium’ put on by the the ACT Chief Minister, Andrew Barr, and NSW from Canberra Airport”. He reports: Robb, theand ACTInfrastructure, Chief Minister,the Andrew Barr, and Canberra Airport Group (CAG), which the theme was “Up. Andrew Up Transport Hon Andrew Constance (yes,
As the current overnight airfreight system NSW Minister for Transport and Infrastructure, the Honwere followed andhighlighted Away! Exporting from Canberra Airport”. there were many Andrews in the line-up!). They comprises a complex network of routes designed AndrewbyConstance (yes, there were many Andrews in producers/ presenters from regional organisations and As highlighted thecurfew current overnight airfreight system comprises around meeting requirements at Sydney Airport the line-up!). They were followed by presenters from exporters, all of whom were enthusiastic about the prospect a complex network of routes designed around and to a lesser extent Adelaide Airport. Themeeting currentcurfew regional andbecoming producers/exporters, all freight hub. of organisations Canberra Airport an international requirements at airfreight Sydney Airport and is to operated a lesser extent Adelaide trunk overnight network by two of whom were enthusiastic about the prospect We heard from oyster farmers, cherry growersof and asparagus Airport. The current trunk overnight airfreight is major overnight airfreight operators, Qantas Freightnetwork and Canberra Airport inbecoming international freightof shortening producers particularan about the importance operated by two major overnight airfreight operators, Toll Priority. Interesting some details provided at theQantas hub. We heard from oyster cherry Sydney growerstraffic and is certainly the transport times farmers, (and avoiding Freight and Toll Priority. Interesting some details provided at Symposium were, asparagus producers in particular about the importance part of that), and the global economic outlook opportunities the Symposium were, 2000+ places to land a plane in Australia, of shortening the transport times (and avoiding Sydney to Singapore for Australian business.. Flights out of Canberra • 2000+ places to land a plane in Australia, 332 registered/certified Airports, approx. 30 ‘jet capable’ traffic is certainly part of that), and the global economic will leave late in the evening enabling regional produce to be at • Airports, 332 registered/certified 15 large jet capableAirports, Airports, and 5 large jet capable outlookmarket opportunities for Australian business.. in Singapore early the next day, or Flights ready for transfer to with no capable’ constraints (curfew, slots, military ops, • Airports approx. 30 ‘jet Airports, out of Canberra to Singapore will leave late in theinevening other flights for a range of destinations SE Asia. Effectively, bilateral air service agreements, etc). Based on those • airspace, 15 large jet capable Airports, and enabling regional produce beoverseas at market goods would be on to sale a in daySingapore earlier than would be details, and current constraints and capacity of Sydney Airport, early the next day, or ready for transfer other flights • 5 large jet capable Airports with no constraints possible if relying on flights out of to Kingsford Smith Airport. Canberra Airport is well placed to operate as an alternate for a range of destinations in SE Asia. Effectively, goods (curfew, slots, military ops, airspace, bilateral air freight airport. It was noted within a 2-3 hour transport time/ After the Symposium, there was a brief bus tour of the airside would be on sale overseas a day earlier than would be service agreements, etc). radius from Canberra, approx. 60% of Australia’s exporters are of Canberra Airport which confirmed that CAG’s plans are for possible if relying on flights out of Kingsford Smith Based onEastern those details andor current constraints in South Australia, as described, withinand the NSW/ much more than simply filling the holds of passenger aircraft. Airport. capacity of Sydney ACT/Victoria ‘ribbon’.Airport, Canberra Airport is well Part of the Canberra Airport Master Plan is to build freight After the Symposium, was a accommodate brief bus tour wide-body of the placed to operate as an alternate freight airport. It facilities that willthere eventually freighter The noted Symposium given thetime/radius recent announcement airside aircraft. of Canberra Airport which confirmed that CAG’s was within was a 2-3timely, hour transport from Canberra Airport has many advantages as a hub, being by Singapore Airlines that will be commencing plans are much more thanjetsimply filling the holds of Melbourne Canberra, approx. 60% of itAustralia’s exporters international are in thefor only major large capable airport between flights in and out of Canberra in September to the and from passenger aircraft. Part of the Canberra Airport Master South Eastern Australia, or as described, within and Brisbane that does not have constraints such as nightly Wellington and Singapore. Plan iscurfews. to buildIt is freight facilities that to will eventually NSW/ACT/Victoria ‘ribbon’. As we were reminded during the day, clear that CAG wants establish Canberra Airport there is a huge amount of freight haulage possible in the hold accommodate wide-body freighter aircraft. The Symposium was timely, given the recent as a viable international freight hub asCanberra soon as possible and of wide-body passenger aircraft – up to 30 tonnes! Passengers Airporttohas advantages as option a hub, for being the only announcement by Singapore Airlines that it will be be many effectively a second Sydney well ahead of the may be in relative comfort on the main deck, while there might major large jet capable airport between Melbourne and commencing international flights in and out of Canberra building of the Badgery’s Creek airport. be many frozen lamb carcasses and kilolitres of fresh milk Brisbane that does not have constraints such as nightly in September to and from Wellington and Singapore. sloshing around in the hold below (just two of the examples So,Itall all, it wasCAG an interesting and enjoyable day. Importantly, curfews. is in clear that wants to establish Canberra As we were reminded during the day, there is a huge that were mentioned). Around 95% of the airfreight in and out itaswas clear that the development within the Airport precinct Airport a viable international freight hub as soon as amount of freight haulage possible in the hold of wideof Australia is carried by passenger aircraft. will continue at a rapida pace, maintaining this as a vibrant and possible and to be effectively second option for Sydney body passenger aircraft – up to 30 tonnes! Passengers attractive location of forthe Supply ChainCreek and Logistic well ahead of the building Badgery’s airport.opportunities The be event was attended bythe a broad rangewhile of people may in relative comfort on main deck, there from in Canberra ant its region. federal, and local government agencies, So, all in all, it was an interesting and enjoyable day. might bestate, manyterritory frozen lamb carcasses and kilolitres of export businesses, and people of (just manufacturing or Importantly, was clear that the development By Garyit Pearce President SCLAA ACT/SNSWwithin Division fresh milk sloshing aroundininthe thebusiness hold below two of growing products export. the Airport precinct will continue at a rapid pace, the examples that for were mentioned). Around 95% of the maintaining this as a vibrant and attractive location for airfreight in and out of Australia is carried by passenger Supply Chain and Logistic opportunities in Canberra and aircraft. its region.
SCLAA Newsletter March 2016
13
17th Annual
Queensland Conference Nerida Kelton President
The dates have been set for the 17th annual Queensland Supply Chain and Logistics Conference. More than 5500 delegates from
personal development in a unique
across Australasia have attended
and relaxed networking-based
the Queensland Supply Chain &
environment.
Logistics Conference in its 17-year history. Will you be among the delegates in 2016? This
national
designed
for
Logistics, Procurement
of September at the SOFITEL Brisbane Central hotel and with a
is
theme of Supply Chain Unity this
Supply
conference
Chain,
is a not-too-be-missed national
Transport
and
professionals
and practitioners and is run by industry for industry. It aims for professional and
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To be held on the 1st and 2nd
SCLAA Newsletter March 2016
event. To find out more about the conference email info@qldscc. com visit www.qldscc.com or phone 1300 920 439.
Queensland helps Foodbank
Over 160 members of the SCLAA,
with an additional value of
AIP, APPMA and QSCLC, spent
$44,000. In six years the SCLAA, in
their annual Christmas party for
conjunction with the AIP, APPMA
the sixth consecutive year with a
and the QSCLC, have packed 4300
twist. The members spent the day
hampers to the value of over
packing a record 1250 hampers,
$541,000.
for Foodbank to distribute to those in need at Christmas; many of whom are without employment, families with young children and living on the poverty line.
We would like to acknowledge Blackmores,
Collins
Food
Group, Kimberly Clark, Colgate, OfficeMax, Sizzlers, the APPMA, BDO, Stanwell Corporation, TAE, All Purpose Transport, Linde,
The 1250 Foodbank Hampers
Department of Public Housing
project is a culmination of twelve
& Works for going above and
months of work, with over
beyond this year to help provide
$140,000 worth of goods raised
goods and funds for the hampers.
to go inside the hampers and
Without the industry supporting
generous support from many
this project it would not be as
companies across the country
successful year-on-year.
who assisted with the goods collection. The 2015 hampers were worth over $120 each and were made up of food and
If you would like to donate any items for the 2016 Hamper project please email qld@sclaa.com.au
personal hygiene products. This year we added an additional 350 x packs for ladies and 100 x packs for nominated charities,
SCLAA Newsletter March 2016
15
South Australia & Northern Territory Report Matt Madsen President
The South Australia and Northern Territory Divsion has gotten off to a good start for 2015! John Eleftheriou stepped aside from the role as Division President at the end of 2015 but remains in his role on the National Board of Directors. Thanks John for all the hard work you’ve put into the SA/NT Division over the past years, you’ve earned a welldeserved break from the trenches! Taking over for John as the new SA/NT Division President is Matt Madsen. The prime focus for the Division in 2016 is to increase membership and visibility. With a focused membership drive already underway and a lot of behind the scenes work by various Division Committee members, we’ll be able to achieve the goals we’ve set ourselves. The Division is planning regular events through the year. Two of these are already coming together as very worthwhile site visits to Adelaide based facilities. Watch the Calendar of Events on the SCLAA website for more information in the lead up to these two exciting opportunities. And if you’re unable to make the visits when they do happen, you’ll be able to find a complete summary of what went down after the fact via these future Division updates. Finally, if you are a SCLAA member or part of an organization which is a National Partner of SCLAA, please help spread the word about our unique organisation. If you know of anyone who is SA or NT based and could benefit from knowing more about SCLAA please pass on Matt’s contact details: at sa@sclaa.com.au or phone 0402-174-266
SCLAA members save on fuel The Supply Chain and Logistics Association of Australia (SCLAA)
There is no limit on the ability of members to use this deal with
has negotiated an exclusive deal with Caltex that will provide
their family, employer or employees.
huge savings at the bowser and savings of up to 40% off the monthly fee on StarCard fuel cards.
Caltex StarCard is the
must-have fuel card that makes managing your personal and or business fuel use easy. Members benefit with Fuel discounts at over 2,000 participating fuel outlets Australia-wide (including Caltex, Ampol and Woolworths-Caltex outlets or anywhere else that accepts the Caltex StarCard) Members can use this SCLAA deal for their own, extended family members or employers / employee’s cars / vehicles / trucks.
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SCLAA Newsletter March 2016
There is no limit on the amount of fuel purchased. Any vehicle from motor bikes to B Triples, mobile tanks, lawn mowers and even boats! For more information go to http://sclaa.com.au/energy-eff/member-fuel-discounts/
Interview with
Senduran Kandavanam Senduran is the Senior Dealer Parts Management Analyst with John Deere
Why did you join the SCLAA? What benefits do you believe the SCLAA offers all their members? I joined SCLAA because I strongly believe that SCLAA provides a platform for the members to share and learn best practices, proven methodologies in the modem supply chain environment and more. This would also help me to connect to an impressive supply chain community of SCLAA members and receive up-to-the-minute industry news from the association and develop my professional attributes..
How long have you been in the industry? Ive been in the industry for 5.5 years
What are your areas of expertise? My areas of expertise: 1.
Inventory analysis, control & optimisation
2.
Project Management & Consulting
3.
Forecasting
4.
Lean Business Improvement
5.
Sourcing
6.
Cost erosion and reduction
7.
Value Engineering
8.
KPI Management
9.
Product and process costing
10. 1Vendor Management
What is current job role and what are your responsibilities? I’m in charge of leading our channel partners/clients in optimizing their fill to customers and overall parts business profitability through a combination of collaboration, best parts management practices, innovative tools and techniques, and creating an environment of mutual accountability while remaining “cost neutral” to our organization and elevating the role of Analysts to that of Trusted Advisors. I’m also responsible for conducting in-depth yearly review of business system and channel partner performance; assist in establishing annual performance goals that are aligned with company business objectives
SCLAA Newsletter March 2016
17
2016 Queensland
1 & 2 September 2016 SOFITEL Brisbane Central
More than 5500 delegates from across Australasia have attended the Queensland Supply Chain & Logistics Conference in its 17 year history. Will you be among the delegates in 2016? This conference is a recognised national event designed for Supply Chain, Logistics, Transport and Procurement professionals and practitioners. It aims for professional and personal development in a unique and relaxed networking-based environment.
MARK THESE DATES IN YOUR DIARY. HOSTED BY
( 1300 920 439
ď‚™ info@qldscc.com
ďƒ˝ www.qldscc.com
Join the QSCLC Group on