SCLAA NEWSLETTER
June 2018
June 2018 p: 1300 364 160
e: secretary@sclaa.com.au
w: sclaa.com.au
Queensland Branch Visits Boeing Warehouse
Annual Women in Logistics Luncheon, 3 August 2018, Melbourne 'The Great Debate' BOOK NOW VIEW 2018 VIDEO HERE 58th Australian Supply Chain and Logistics Awards Gala Dinner 23 November 2018, Sydney. BOOK NOW Submissions Now Open VIEW 2018 VIDEO HERE Join the SCLAA - For more information on how to join the SCLAA go to www.sclaa.com.au or follow us:
SCLAA National Chairman - Amanda O'Brien Amanda O'Brien is the National Chairman of the SCLAA. Amanda is a Transport & Logistics Professional and the CEO and Managing Director of Australian Worldwide Logistics Pty Ltd trading as Xtreme Freight with head office based in Melbourne.
The SCLAA continues to grow its presence in global markets. Attending as a guest of LogiSYM for one of Asia’s largest Logistics and Supply Chain Conference in Singapore, it was evident that supply chains face the greatest challenge in the next decade. Resilience, innovation and internal capabilities of organisations were highlighted as key themes to sustain long term viability. The ability of companies to maintain speed and flexibility in a highly technological market are essential to sustaining robust supply chains. There are great benefits generated from increased supply chain pipeline velocity, profitability and performance. The two-day conference was hosted at the NUSS Kent Ridge Guild House in Singapore and brought together 300+ shippers, manufacturers, 3PLs, forwarders, logistics professionals, educators and technology solutions providers from around Asia. This is the fourth time LogiSYM has hosted an event in Singapore in partnership with The Logistics and Supply Chain Management Society, who are Asia’s premier peer-to-peer members only logistics practitioners’ association. The symposium aimed to bridge the gap between supply chain concepts and technology and real world implementation.
L-R: Kim Winter, Founder and CEO Logistics Executive Group; Sasha Vasiljkovic, Director Strategic Sales, Group Sales and Marketing, Toll Group Singapore; Stephanie Krishnan, Advisory Board Manager of Logistics & Supply Chain Management Society (Singapore); Amanda O’Brien, Chairman SCLAA; Darryl Judd, Global Chief Operating Officer and Managing Director, Asia Logistics Executives; Dr Raymond Krishnan, President Logistics and Supply Chain Management Society
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SCLAA Newsletter February 2018
We need to collaborate to compete and can we really predict the next 40 years, or even a decade, of what requirements are needed in the supply chain areas? Certainly not. In the new normal everything and anything is possible. We have come to expect natural disasters and faster choices. We are already working in the midst of megatrends, globalisation, urbanisation, shifting economic powers and scarcity of natural resources, next generation technologies and climate change. Efficient urban logistics is an increasing requirement and distribution centres or hubs on city outskirts will be required to accommodate increasing population and demanding consumer driven online buying. At the conference the Belt Road Initiative was articulately presented by Ton Van Den Bosch, Energy Terminals and Infrastructure Lawyer Ince & Co LLP. Ton is the Global Head of Ince & Co’s Ports, Logistics and Terminals Practice and Head of Projects and Energy in Asia. Specialising in infrastructure and energy projects, including ports and terminals, as well as offshore oil and gas projects (particularly FPSOs). Ton has particular expertise in frontier and emerging markets in Africa and Asia. The Belt Road initiative is President Xi Xin Ping’s strategic vision to strengthen the long term economic and social prosperity of participating countries, to enhance global trade and investment connectivity and 60 countries have shown interest. In 2014 Xi Xing Ping, in his address to the Australian parliament, said China welcomed Australia’s participation in the Maritime Silk Road. Australia and China have a strong relationship strengthened by the China Australia Free Trade Agreement. China is one of our most important trading partners and Australia has a strong export link with China and China’s Antwerp of investor’s key contributions. For Australia, the BRI means expanding outbound and inbound trade and investment opportunity and is important to Australia’s infrastructure development. Trade between China and Australia was valued at 130 billion in 2013 (just under 24% of our total trade in goods and services making China by far the most important single market for Australian exports). China is Australia’s largest trading partner for imports and exports. Australia is China’s sixth largest trading partner. 25% of Australian manufactured imports come from China and 13% of its exports are thermal coal to China. Ton stated that 1.3 trillion dollars globally had already been invested in the BRI.
Dr John Gattorna a world expert and Global Supply Chain Thought leader and author who has been a strong supporter of SCLAA, and our keynote speaker at last year’s National Awards and recipient of the 2017ASCL Industry Excellence Award, opened as key note speaker at the Global Logistics Conference. He stated categorically that growth through turbulence and volatility drives innovation.
Hosted by Livinia Nixon, Channel Nine presenter, the Awards were sponsored by the Victorian Government, Port of Melbourne, SICK and SEW-EURODRIVE. The SCLAA was pleased to present this award, exhibit and partner with MEGATRANS2018 at this prestigious event. The SCLAA was also pleased to present the ‘Supply Chain and Logistics Association of Australia Award for Excellence, Master of Logistics and Supply Chain Management', University of Sydney’ to the highest academic achievement in the Masters of Logistics and Supply Chain Management at the University of Sydney. This is the second time this perpetual award has been presented. The evening was attended by Mark Skipper, former Chairman of SCLAA, who presented the award to Ms Yawen Jiang.
Dr John Gattorna, Executive Chairman, Gattorna Alignment Pty Ltd; Amanda O’Brien, SCLAA Chairman; Kim Winter, Founder and CEO Logistics Executive Group.
Looking outside of the business and seeing trends and different core relationships assists us to understand expectations of customers. Most businesses manage vertically but customers manage horizontally and changing the design of your customers demands will enable organisations to sense key markets and internal capabilities to adapt. Dr Gattorna stated coming back to a frame of reference and segment customers fast rhythm clock-speed, enables companies to adapt their clock-speed up to make organisational change and meet the increasing demands of customers. Agility to make fast decisions and changes in a volatile environment is key and he gave the example of Zara who have had 16 or 17 product changes in a year and maintain a responsible operating model which enables them sustained profitability. It is a requirement to have a fully flexible, agile, lean and collaborative culture to make a great company. Being trusted and reliable, process driven, prefect ready, responsive and innovative is the result of robust processes. This leads onto SCLAA’s involvement at MEGATRANS2018, ‘The Future of Supply Chain and Logistics Conference’ that was held at the Melbourne Convention Centre with great success. MEGATRANS2018, held over three days, was an impressive showcase and a key connection piece within the Australian and international supply chain. Hundreds of exhibitors were present and thousands attended. It brought together those who plan, implement and control the efficient, effective forward flow and storage of goods, services and related information from product inception to the end user in the supply chain. SCLAA presented the ‘Best Storage Solution Award’ to BHD Storage Solutions at The Mercury Awards, held in partnership with MEGATRANS2018. To celebrate with the finalists and get together with the very best of Australia’s logistics and supply chain industry, the ‘Best in Class’ came together on Saturday 12 May in Melbourne to celebrate outstanding achievement in the logistics and supply chain sector. It recognised the outstanding achievements and successes of companies across Australia’s supply chain sector and was held at the Peninsula in Docklands.
Mark Skipper, Immediate Past SCLAA Chairman; Yawen Jiang, recipient of the SCLAA Award for Excellence, Master of Logistics and Supply Chain Management', University of Sydney.
Leading on from prestigious events, the SCLAA was pleased to participate in a key panel discussion at The Australian Tourism & Transport Forum’s Outlook Conference held at the Hilton Hotel in Sydney in May. Outlook 2018 featured Australian and international keynote speakers, expert panels and case studies and has become Australia’s pre-eminent national tourism industry and policy conference. The conference brought together public and private sector experts from throughout Australia and across the globe, with discussions on the rise of the shared economy, the global over tourism phenomenon, security and the threat of terrorism, and emerging transport issues effecting the Australian Transport Sector. The ‘Ahead of the Curve’ panel discussion was commandeered masterfully by Margy Osmond CEO of TTF, Simon Gandy Chief of Aviation Melbourne Airport, David Goh GM Aus/NZ Singapore Airlines Cargo and Douglas Robinson VP IBM Asia Pacific. Discussion topics related that the volume of international air freight and the inevitable dichotomy that population growth will continue over the next 20 years. The volume of outbound and inbound airfreight through Australian airports is forecast to increase by 6% a year over the next twenty years and by 1.2 million tonnes by 2030. 70% of airfreight is uplifted at Australia’s two major airports Melbourne and Sydney. In terms of volume, New Zealand is the largest destination for Australia outbound SCLAA Newsletter February 2018
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air freight. It accounts for 16% of total outbound airfreight followed by Singapore, Hong Kong, United Arab Emirates, USA, Japan, Malaysia, Thailand and Indonesia. Regarding Australia’s inbound freight volume, China is the largest source. It accounts for approximately 40% of total inbound aircraft 12 million tonnes. The existing capacity of airport terminals needs to be taken into consideration and new and expanded terminals are needed to handle the growing rates of inbound airfreight. By 2050 the number of people living in cities will triple and put pressure on energy demands and generate more pollution. Air pollution will be a growing problem and more than half the world’s population may not have adequate accesss to water. We need to protect our energy grids from natural disasters, blackouts are becoming commonplace. Global transport demand will grow by 50% by 2050 and green urban neighbourhoods will be important to sustain our standards with population growth. Freight is set to grow threefold between 2018-2050 so electrical rail, greener transport modes and moving 50% of road freight over 300km by rail will be critical not only to our roads, which suffer gridlock, but also problems to energy efficiency which are yet to be solved. Utilisation of road freight is important as 20% to 40% improvement in load and maintaining existing vehicles more effectively to cut energy use and emissions per tonne or kilometre, will give us more robust trading environment. Key issues for trade are; 1.
Infrastructure development;
2.
Carbon Efficiency in transport;
3.
Supply Chain Visibility and security;
4.
Customs regulations; and
5.
International trade agreements procure a reduction in red tape.
Presenting at the 2018 Transport Women Australia Limited ‘Creating Connections Conference’ it was evident that transport, both domestic and international, is growing in complexity and diversity. Taking part in the panel discussion with Facilitator Jo Tye – HR/Compliance Manager SRT Logistics, Ellen Voie – CEO/ President/Founder Women in Trucking USA, Meryn Morrison – Chair Women in Road Transport New Zealand, Health and Safety Compliance Manager Regal Group, Peter Anderson – CEO Victorian Transport Association, Rebecca Coleman – COO Livestock Bulk and Rural Carriers Association NSW and Jacquelene Brotherton – Chair Transport Women Australia Limited, Transport Manager Oxford Cold Storage, highlighted the challenges and opportunities the freight industry will have over the next decade. It has been stated and proven that move diversity in companies, and particularly in the supply chain, leads to growth and economic benefits.
Jacquelene Brotherton – Chair Transport Women Australia Limited and Transport Manager Oxford Cold Storage; Amanda O’Brien, SCLAA Chairman
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SCLAA Newsletter February 2018
Of particular note with technology and ‘blockchain’ being the buzz word this year, SCLAA representatives attended the unveiling of the Trade Community System in Brisbane showcasing the future of international trade. Held in conjunction with PwC, Australian Chamber of Commerce and the Port of Brisbane, Mr Bryan Clarke - Director of Trade and International Affairs for the Australian Chamber of Commerce, opened proceedings to a full house. Mr Clarke stated that Australia relies on efficient and effective trade to drive its economy. Port of Brisbane’s CEO, Roy Cummins, stated that it is the right time for industry to initiate a reform and modernise to cater to international business. Presentation and live display witnessed how technology is transforming Australia’s international trade environment and opened the arena up to some interesting questions about how data security and the monopoly of Intel would be a telling factor in future collaborative alliances to enable this technology to fulfil its prophecy of a transparent, seamless and integrated supply chain. PwC Australia, The Australian Chamber of Commerce and Industry and the Port of Brisbane showcased a proof of concept in building an innovative end to end supply chain that will digitise the flow of information and gain productivity gains.
Bryan Clark, Director of Trade and International Affairs, Australian Chamber of Commerce and Industry; Amanda O’Brien, SCLAA Chairman.
A highlight was meeting Mr Stanley Lim, President of the International Federation of Freight Forwarders Association and formerly the Chairman of the Singapore Logistics Association. He was also Chairman of ASEAN Federation of Forwarders Association and he is passionate about the Supply Chain and delivering education through the logistic academy in Singapore. In recognition of Mr Lim’s valuable contributions, he was awarded the Public Service Award by the President of the Republic of Singapore in 2001. The SCLAA will be exploring opportunities to collaborate with the Singapore Logistics Association in the coming months. The SCLAA’s Women in Logistics 2018 ‘The Great Debate Luncheon Progress or Paralysis?’, to be held on Friday 3 August in Melbourne, will gather leaders in industry to discuss today’s changing climate and the reality of women working in the logistics industry. The SCLAA hosts a multi-generational, multigendered panel discussion that will bring their experience, reality and truth to the table. Please go to the ‘Women in Logistics’ event page on the SCLAA website to book for this unique and industry changing event.
THE FUTURE OF TRANSPORT IN THE AGE OF E-COMMERCE INDUSTRY PANEL BRIEFING. WEDNESDAY 11 JULY | 12PM - 2PM | RACV CLUB E-commerce and other digital technologies have provided consumers with a multitude of ways to buy and receive goods. This has simultaneously fuelled an expectation to take place within short timescales, elevating the importance of smart distribution networks across warehouse operations. As e-commerce continues to grow stronger, experts in the transportation industry will address the rapid technology changes, and the new delivery paradigms that will shape the future of logistics and transportation systems. Join a panel of Transport Technology industry experts from Zebra Technologies and Blujay Solutions as they discuss the changes coming for e-commerce and the disruptive technologies ahead REGISTER NOW
SCLAA Newsletter February 2018
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CLICK HERE to view highlights of the 2017 Awards.
2018
You are invited to the 58th Annual Australian Supply Chain & Logistics Awards Gala Dinner These prestigious National Awards, presented by the SCLAA, have been running for 58 years making them the most sought after, recognised and influential awards across the Supply Chain, Logistics and Transport industries.
Book now and celebrate with us
Book Online Now
Venue:
The Grand Ballroom, Luna Park, Sydney
Date:
Friday, 17 November 2017
Time:
6.30 pm (for pre-dinner drinks) to 11.30 pm
Dress:
Ladies - Cocktail, Gentlemen - Lounge Suit
Cost:
Individual tickets Table of 10
PH: 1300 364 160
View Categories and Criteria
$ 190 inc GST $1,750 inc GST
secretary@sclaa.com.au
www.sclaa.com.au
Straight Talking - David Doherty OAM David Doherty OAM is a past President and Life Member of the SCLAA and a highly regarded logistician. Send your Straight Talk feedback and comments to davdoh1@optusnet.com.au
Did you catch the recent Harvard Business article concerning the looming death of Supply Chain? The guts of the item was about the way Artificial Intelligence, Robotics, Automation, Block Chain and such are replacing Supply Chain functions. Well, that is certainly true regarding functions. At the outset the real concept of Supply Chain was to introduce a new way of doing business. In reality, a mental model that embraced sharing of information, building value generating collaborative relationships, elimination of duplication and waste, sharing of value derived from the new innovative relationships, etc. Technology advancements have certainly allowed the sharing of information and the deletion of duplication and waste (to some extent) to progress beyond the expectations of Supply Chain inventors. However, people remain as the critical element in building real and enduring truly collaborative value generating relationships. The next practice Supply Chains will and must evolve to embrace the future environment and continue to be the business mental model of choice. Don’t dessert the ship just yet! There is life yet in real Supply Chain mental models! As Mark Twain famously said, ”Reports of my death have been greatly exaggerated”! The same comment applies to Supply Chains.
Certification for Supply Chain and Logistics Professionals and Practitioners has rankled with me for many years. I have always considered (as have some of my close colleagues) that Supply Chain and Logistics should have a Certification that held the image, respect and uptake of systems like CPA (Accounting). Of course, there are exiting offerings, some with international providers (I admit to some bias for the CSCMP version out of the USA), but in Australia they do not carry the kudos, or acceptance of industry, business, governments, academia or indeed our own Professionals and Practitioners. Certification should be a benchmark for everyone to rely on as evidence of capabilities and competence. It is time for all the relevant parties to utilise the collaborative skills we all endlessly talk about. One common real Certification adopted and branded for all Australians (and perchance New Zealanders) would be evidence of statesmanship and genuine desire to advance the profession. I am not holding my breath waiting for some real leaders to emerge to get this done! My credit card was recently hacked, allegedly by an offshore Casino. Just a few cents in teaser transactions. As an avid frequent surveyor of my accounts I discovered the teaser transactions as soon as they appeared. My bank acted swiftly to eliminate the transactions and to act to prevent further access. The point here is that cyber crime and hacking is rampant. Seemingly the security products have difficulty in keeping up with the threats. You must
be vigilant and diligent in protecting your information and immediately act when anything suspect occurs. Social media is also rife with attempts to infiltrate. Supply Chains are vulnerable too! Be aware not Blaise! I have been overseas for the past six weeks visiting several countries by ship and air. Riding on the London Tube and the New York Subway I was struck again with a thought that has endured with me for a long time. I am willing to bet that the original proposals to build the Tube and the Subway did not meet the desired ROI for investment. Someone, or some group, had to possess an undeniable vision of the great value (other than financial) such projects could deliver. Visionaries are in short supply in Australia. The long-mooted train link to Melbourne Airport and the fast train that should link Melbourne to Sydney and Brisbane are no brainers in my view. Time to get them done without any more bull or pretend dialogue. Where are the entrepreneurs and visionaries? It is 2018. I want them done now! By the way on a personal note. My recent overseas trip took me to Norway. If you have not been there make a deal with yourself to start planning now. It is just beyond imagination. The logistics associated with living there are also very interesting. Check it out! Winter is certainly here now in Australia. Rugging up and taking precautions to ward off seasonal illnesses are important. Even more importantly being inside more allows time to muse and think about opportunities and challenges you can pursue. Don’t waste any time. Give it your best shot while basking in the airconditioning, heating (or dare I say it— blankets). These days if I am delayed or forced to wait I use the time to focus on positive opportunities, not the past (or on the cause of the delay).
Keep striving! “It is not the people who cast the votes that decide an election—it is the people who count the votes”. (Lenin)
plant & equipment cashflow finance automotive
import employee benefits marine TM
finance for things that go.
finance for things that go Rob Berryman: 0419 375 834 | 1300 134 646 www.fingofinance.com.au/SCLAA
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SCLAA Newsletter February 2018
THE LAST MILE RETAIL STUDY, 2018 THE ‘ICONOMIZATION’ OF THE LAST MILE Demand for last mile services has increased by 50% in the last 18 months. e-Commerce is booming and the last mile is taking the force of the impact. EFT surveyed 129 supply chain executives from retailers, manufacturers and brands alongside 194 executives from leading global logistics providers about how this change in demand impacts them. Companies in the retail and logistics industries are being forced to adapt to meet the fulfillment demands of their consumers. The minimum expectation is now: What I want, where I want and when I want it. We are now in the age of the Individual Economy (‘Iconomy’ for short). Retailers are facing a number of challenges to meet this growth using the last mile and are demanding lots from their providers. Logistics providers are working hard to keep up with this demand, but interestingly are showing a different priority of items. Cost is the biggest challenge for retailers when it comes to the last mile. This is in contrast with logistics providers, who reported the need to drive greater efficiency in last mile operations their biggest challenge. So what does the future of last mile hold? This report breaks down the biggest challenges facing retailers and the logistics industry, and investigates what’s coming next. For a full copy of the report - CLICK HERE
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The Gender Diversity Roadmap Where to From Here?
In recognition of International Women’s Day earlier this year, the SCLAA Chairman, Amanda O’Brien joined an impressive line-up of panelist at an event hosted by Vertical Talent, a division of Drake International. Our panelists explored why gender equality matters; sharing some powerful and insightful advice on the promotion and practical application of equality and inclusion in the workplace. The push for gender equality in the workplace continues but there is still a long way to go. Last year, the Workplace Gender Equality Agency reported that only 15.4% of CEO positions were held by women, and 25.1% of organizations have no female senior managers. What we learnt is that gender diversity is more than just setting a “quota”. To effectively embrace gender diversity; it means significant change for an organisation and a real commitment from the top level down. Only when you have the buy in from all levels will businesses benefit from an inclusive and diverse workforce.
What we learned is that gender diversity is more than just setting a ‘quota’. Some of the key recommendations to drive a more inclusive and gender diverse workforce included: • Reviewing existing recruitment practices to eliminate processes that continue to disadvantage women. Points to consider include panel interviews, equitable recruitment policies, and the review of outdated job descriptions.
• Create a fair, objective and engaging culture for everyone. Companies need to challenge the status quo and be committed to change. • Offer flexibility. Companies shouldn’t measure on ‘desk time’ or ‘hours’, rather “output” or “results”. Companies need to be more innovative and accommodating in terms of employment arrangements for all staff. • Make mentoring and sponsorship of women a priority. It’s difficult for any organisation to embrace gender diversity without female role models and mentors. The feedback to the event was extremely positive. Many understand the importance of gender diversity, and it’s influence on the bottom line, and are looking at ways to further bridge that workplace gender gap. Tom Key, one of Vertical Talent’s experienced consultants, describes gender issues in recruitment as a “common occurrence”. Tom says ‘Sometimes there is unconscious bias due to an individuals’ own experiences or opinion but more concerningly, there are still those that feel they have to specifically dictate what gender would be best for a role. In the last few years, there has been massive forward movement in recognising and celebrating the diversity and benefits of a balanced workforce but we now need to turn this awareness into action – as well as being brave enough to challenge those who still display inappropriate and archaic attitudes.” Vertical Talent’s recent gender diversity event is just another way in which we can help educate, inform and encourage organisations to make the appropriate changes to bridge the gender diversity gap.
For more information, visit http://bit.ly/diversityrecruit
From left to right: Michael McGrath, René Lalande, Lisa Williams, Bill Pollock, Amanda O’Brien and Susan Oliver
WA
Division
Brian Lynn - WA President
Meet new WA Committee Member - Ing Hubertus Jansen - Founder and Principal Janz Consulting Janz Consulting Pty Ltd is a boutique strategic advisory firm working with selected clients to help them develop a customer & delivery focused business strategy, including innovative supply chain trategies. Our methods are built on the extensive experience of the owner Hubertus Jansen, and our roven frameworks – in particular the groundbreaking Logistics Organisational Capability framework©. Janz Consulting is founded by Hubertus Jansen and works with a group of dedicated highly experienced professionals depending on the scope of the project. The founder & Principal Consultant: MSc. Ing. Hubertus Jansen has 17+ years of global experience with major Oil & Gas Companies. Has significant experience planning, developing, implementing and managing logistic and infrastructure operations within the Oil & Gas sector. Extensive experience within Asia-Pacific and European regions and a solid record of performance across strategy development, short and long-term planning, contract and project management, outsourcing, customer alignment, agile and lean logistic solutions. A respected leader with a talent for uniting teams, building capability and steering staff through the complexities of change. Has strong analytical and critical thinking skills, teamed with a proactive approach and commitment towards continuous improvement. Global Experience. Janz Consulting Pty Ltd has more than 17+ years of experience working for Oil & Gas majors around the world (e.g. Shell, Exxon, Wintershall (BASF)). We strongly believe that everywhere you go you can always learn something new. Our principal consultant for example has executed projects on: •
North America: Gulf of Mexico & Canada
•
South America: Brazil, Trinidad & Tabago
•
Europe: The Netherlands, Norway, Ireland, Scotland, England, Albania, Denmark & Germany
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Africa / Middle East: Nigeria, Gabon, Oman & Iraq
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Asia / Russia: China, Malaysia, Brunei, Indonesia, East Timor, & Russia
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Australia: West & East Coast
Janz Consulting Pty Ltd is currently delivering Project Logistic Management for all Pre-FID activities for Woodsides Scarborough Project in Western Australia and CleanTeq Sunrise Cobalt Mining Project in New South Wales.
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SCLAA Newsletter February 2018
ACT/ SNSW
Division Report
Gary Pearce - ACT/SNW President
The ACT/SNSW Division held a breakfast event titled ‘Working with Defence’, with presenters Kate Lundy (exLabour Senator and currently ACT Defence Advocate) and Graham Priestnall (ACT AIDN Chairman, and past AIDN National President). As the Canberra region benefits from the Commonwealth Government’s commitment to increased defence expenditure the event presented identifying opportunities to the ACT/SNSW members. The Department of Defence already injects about $3.1 billion into the Canberra region’s economy and creates about 16,800 jobs. Both presenters provided far-reaching and helpful information for Defence Industry programs and contacts that members are able to pursue. Kate’s presentation outlined the objective for Defence industry policy in delivering the Defence capability necessary to achieve the strategy set out in the Defence White Paper, supported by an internationally competitive and innovative Australian defence industrial base. She focussed on three documents: •
•
•
The 2016 Defence White Paper which sets out a comprehensive, responsible long-term plan for Australia’s defence. Australian industry will play a major role in delivering the plans in the Defence White Paper. The Integrated Investment Program, which outlines the $195 billion of Defence capability investment and provides industry with the certainty to invest in people and infrastructure The Defence Industry Policy Statement, which provides the foundation to take the partnerships between Defence and industry to new levels of cooperation, with a focus on stronger, more strategic partnerships and closer alignment between industry investment and Defence capability needs.
Graham’s presentation focussed on this SCLAA networking event, unveiling the roles that can be available to many SME businesses in our region to become involved, directly
and indirectly, and share in the opportunities that will become available through the Defence procurement plans. He announced the Australian Industry and Defence Network (AIDN) was established 23 years ago by a group of SME’s seeking to convince Defence to support Australian SME companies. He added that in 1995, existing State-based defence industry groups combined under the AIDN banner, and AIDN Networks are now operational in all States and Territories - AIDN has over 800 member companies. Graham affirmed AIDN’s mission, to provide support and advice to small and medium enterprises (SME) in the Australian Defence Industry Sector through advocacy, representation and member services. His presentation complemented Kate’s presentation and addressed topics such as: Fundamental Inputs to Capability (FIC), •
Which Industry is now a FIC (Capability in the Defence context is the combined effect of multiple inputs),
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An SME’s View of the Defence Organisation (How the hell do a tackle this monster?),
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Who do I talk to and how do a find the right person to engage?
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Trends in Defence and Defence Industry,
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Finding Opportunity in Defence Procurements (what does the trends identified mean for Australian SME logistics companies), and
•
concluded with the AIDN-ACT Contacts.
The members and guests that attended were able to obtain beneficial information from the presenters and left understanding the very complex Defence Industry environment.
Defense Land Capability Luke Martin - ACT/SNW Secretary “Make your enemy think that your normal force is extraordinary, and your extraordinary is your normal’, Sun Tzu. On 18 May 2018, the Australian Army showcased its firepower capability during Exercise Chong Ju held at Puckapunyal, Victoria. It is the Army’s largest firepower demonstration and was not only a training opportunity for its soldiers but provided a means to feature some of Army’s newest weapons, vehicles and combat systems for the first time. It demonstrated to both Australians, Allies and potential adversaries the capability our Army is developing to meet the emerging challenges within our region and more globally.
The future of the land combat environment, demands capability that can operate, survive and be sustained within a complex, fast-paced, multi-threat domain. While it necessarily requires the Defence to adapt, industry must also evolve beyond delivery of the survivable and technological capable hardware, to provision of adaptive supply chains. These supply chains will need to provide two parallel capabilities: firstly, the provision of efficient, timely sustainment of the Army during its training for land combat within Australia; and secondly, enable the strategic integration with Defence’s overseas operational logistics requirements, delivering effective supply chain outputs that support the generation of tactical lethal effects at the front line. The ability of industry to support the strategic through to tactical continuum enables the ability for Government to apply land combat forces at points in time that allows it to exert the wider influence of National power.
Fundamental to the ability of Government to shape and influence through our Defence force, is the need to develop and secure a credible and capable long term National industrial capability. On 23 April 2018, Government released the Defence Industrial Capability Plan, which outlined the long-term vision to build and develop a robust, resilient and internationally competitive Australian defence industry base. The plan outlines the method Government will support and invest to develop an industry that has resident skills, expertise, technology, intellectual property and infrastructure to support Defence operations and the required acquisition, operation and sustainment of future Defence capability. For the Supply Chain and Logistic industry within Australia, the opportunity to diversify into Defence industry is significant with particularly incentives for SME innovation.
The opportunities will grow over the coming decade as Government invests to ensure a sovereign industrial capability is postured to support the delivery of its Integrated Investment Program. Of note for Australian based supply chain and logistic organisations, is Government’s planned investment of $28 billion in the land combat capability. This investment includes not only the delivery of the hardware systems but also the maintenance and repair services, manufacture and supply of components and complete systems through either a prime contractors supply chain or as niche capability elements. The value of these supply chain and logistic opportunities cannot be understated. In 2016-17, Defence spent over $8 billion on sustainment activities (across all domains). By 2025-26, the combined value of these sustainment activities is forecast to grow to more than $145 billion (32% of the total Defence budget). The investment in Australian Defence industry is providing second order success for both Australia manufacturers and suppliers to Defence. Australia is now delivering world class capability and adaptive support systems, which is opening exposure to international investment as Australia’s Allies and Coalition partners look to Australia for the provision of land combat capability systems. These opportunities include integration with global supply chains across multiple platforms. A summary of those significant projects within the land domain presenting opportunities for Australian supply chain and logistic industries include:
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SCLAA Newsletter February 2018
Project LAND 8120 seeks to provide a replacement capability effect for earth moving and material handling equipment engineer support platforms. Innovative delivery and support options are sought. Approaches may include traditional Defence ownership and maintenance, long-term lease, short-term hire, contracted fleet management, out-sourced sustainment, or a combination for the complete capability or identified subsets.
Project LAND 121 Phase 4 will acquire 1,100 Protected Mobility Vehicles-Light (PMV-L). This will be an entirely new capability for land forces, providing high levels of blast and ballistic protection, integrated communications, enhanced mobility and portability. Two vehicles are currently completing operational trials in Iraq to ensure it is ready for full production in 2019. Defence is looking to export these vehicles to Poland and possibly Indonesia in the near term. With the Australian based manufacturer providing 170 jobs within Bendigo and support by Australian SME supply chains, it offers long term industrial opportunities.
The Hawkei design was informed by the Bushmaster Protected Vehicle. Thales’ Australia has delivered over a 1000 bushmaster vehicles to Defence. It has been combat proven and continues to remain at the core of the Australian Army’s battlefield mobility. Produced in Bendigo it continues to provide local employment and SME supply chain and logistic opportunities across all componentry elements. Currently utilised by Defence in Iraq, it is popular amongst Australia’s allies and is currently in service with seven countries, including Netherlands, United Kingdom and Japan.
Project LAND 121 Phase 3 is currently delivering the new Rheinmetall MAN medium and heavy trucks. A total of 2,707 vehicles will be acquired along with 3,858 modules and 1,753 trailers. These vehicles provide significant advancements to land based distribution, providing enhanced protection, mobility, flexible cargo carrying options and fitted with digitised communication and battlefield management systems. Australian industry continue to be engaged to deliver cost effective supply chains and options for enhanced maintenance approaches to ensure maximum combat availability to the land forces.
Project LAND 400 will deliver the next generation of Armoured Fighting Vehicles. The Combat Reconniassance Vehicle capability was recently awarded to Rheinmetall for delivery of 211 Boxer 8x8 vehicles and 12 additional modules. The $5.2 billion project will see Rheinmetall base their manufacturing in Brisbane, establishing a Military Vehicle Centre of Excellence resulting in the creation of 330 jobs across Australian. With a $2.8 billion spend on Australian Industry Content, Rheinmetall will also draw upon a supply network across Australia to deliver products and services into Rheinmetall’s global supply chain. A range of avenues exist for SCLAA members and National Partners to gain access to opportunities within the Defence network. Engagement direct with OEM delivering (“belowthe-line”) capability offer significant supply chain integration options. The Centre for Defence Industry Capability (CIDC) has been established to assist SMEs understand opportunities and support innovation initiatives. The Australian Industry & Defence Network (AIDN) is a peak industry association supporting SME seeking to do business in the Defence and security sectors. In February 2018, Defence established the ‘Major Support Provider (MSP) agreement with four Australian industry led teams to more effectively engage with industry The MSP agreements represent a fundamental change to how service providers will work together to acquire and sustain Defence capability. The approach mandates fostering a viable and vibrant SME sector for ‘above-the-line’ subject matter expertise, which includes the provision of a range of logistic services. The MSP teams are routinely conducting ‘roadshow’ events and actively seeking SME engagement as delivery partners. Information on the MSP teams can be found at http://www.defence.gov.au/casg/ DoingBusiness/Industry/Industryprograms/MSP/ . This article has been provided by Luke Martin, who is a Principal Consultant with the Providence Consulting Group. Luke has a diverse supply chain and logistics background, evolved mostly through 24 years’ service in the Australian Defence Force.
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Introducing Ellie Aliabadi Why did you join the SCLAA? What benefits do you believe the SCLAA offers all their members? I joined the SCLAA because my colleagues in the supply chain industry speak highly of the superior networking and learning opportunities it provides its members. I am also keen to build a network of professional contacts with whom I can share experiences, exchange ideas and explore opportunities for career advancement.
How long have you been in the industry? What are your areas of expertise? I am very passionate about the industry and the invaluable role it plays in the global economy. I have worked and studied in the logistics industry for over four years and led a procurement and logistics team at Golden Gate International in San Francisco California in 2015. I also have a Master’s degree in supply chain management and am currently a PhD candidate at RMIT focusing on supply chain management and logistics.
What is current job role and what are your responsibilities? I am not presently employed but am seeking a career as a business analyst or consultant with a leading supply chain organisation or consulting firm. I plan to continue my PhD in the area of supply chain and logistics focusing on ECI and ESI in buyer supplier relationship on a part time basis.
Renew your membership online before 30 June 2018 to claim your membership fee in this tax year. If you membership is due in the next couple of months, renew now and claim your membership fee in the 2017/2018 tax year. To renew your membership, log in to your profile at www.sclaa.com.au/login with your email address (as provided to the SCLAA) and password, follow the directions on your profile screen. Don't know your passsword, reset it here www.sclaa.com.au/ login. If you have any questions, or would like a renewal invoice, please don't hesitate to contact the SCLAA National Secretariat on secretary@sclaa.com.au or 1300 364 160. When accessing your profile, don't forget to update all your information.
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SCLAA Newsletter February 2018
SCLAA Newsletter February 2018
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Photo by Kaley Dykstra on Unsplash
Will a break in the chain break your business? 8 steps to protect your business from disasters and supply chain risk
Supply chain risk is rapidly becoming one of the key exposures for manufacturers, retailers and many other industries. Supply chain risk considers the upstream (suppliers) and downstream (customers) vulnerabilities of a business to interruption, be that from insurable perils or simply the vicissitudes of the business. The challenge is these risks are often only understood to a limited degree, with the knowledge of the exposures often incomplete and limited to a few people within an organisation. They’re also not sufficiently tested or scrutinised in a loss scenario. Therefore, too much is left to chance and the outcomes can be catastrophic for many organisations.
Planning for that break in the chain Disaster recovery planning (DRP) is something all businesses need to consider, and, more importantly, create a documented plan. It should have structure and robustness around its creation, be tested and reviewed regularly, up and down the chain, with formalised agreements in place to secure alternatives and continuity. It also needs to be effectively and clearly communicated throughout all levels of the business.
The stats • •
Only 35% of businesses have a robust DRPi When businesses suffer a major disaster 4 in 10 shut down.ii
We can never predict disasters, but we can plan for their arrival. A robust disaster recovery plan will help to ensure you come out the other side relatively unscathed. 24
SCLAA Newsletter February 2018
Steps to consider 1. Assess your risk
While it's impossible to prepare against every risk, you can identify those most likely to affect your business based on industry, technology, geography, and other factors. Design your plan to include actions for the most likely disruptions. Supply chain considerations must form part of this, including loss of key suppliers. Work closely with your insurance and risk advisors who can assist with the construction of this plan and will often bring an external perspective to the process.
2. Transfer and mitigate risk
Your disaster recovery plan will help shape your risk transfer strategy. This includes things like outsourcing, alternate operating sites and in the case of suppliers, alternate suppliers. Importantly, it will also help to shape your insurance (risk transfer) program. Working closely with your insurance and risk advisor will be vital. For example, adding business interruption coverage can help you cover some of the costs associated with bouncing back from an emergency caused by insurable perils, say, fire, storm or flood, to replace your lost revenue or gross profit.
3. Appoint an employee recovery team
Establish a team of employees with essential skills and knowledge, such as information technology, operations, communications and human resources, who can help employees get back up and running remotely or from an alternate location. Provide them with contact information for key personnel as well as any outside help they will need.
4. Provide for business operations
If your office or plant is unavailable, you need to have an alternate location for employees to work, or a way for them to work remotely and access your company network. Establish how the work will get done so you can fulfil customers' expectations.
5. Communicate internally and externally
Clear and transparent communication with employees, customers, media and others is essential for maintaining trust and reputation. Establish one point of contact for employee, customer, and supplier communication. You may also enlist the help of a crisis communications firm, when appropriate.
6. Manage customer and supply chain interaction
You may have damaged inventory or customer orders that need to be filled. Your plan should include supplier contact information so you can alert them to the situation and keep them apprised. The plan may also include possible alternative companies who can help you meet immediate customer needs.
7.A Establish emergency accounting payroll break in the chain doesn’t needand to break your business!
Even as your business recovers, you'll need to be sure you can pay invoices and payroll. A cloudbased accounting system and third-party payroll provider ensureyour financial continuity. Adequate planning and appropriate risk transfer strategies willcan helphelp to ensure business does not
suffer from a loss which affects your supply chain. A robust disaster recovery plan that is regularly
updated will help ensure the viability and sustainability of your business. 8.tested Beand cyber secure
Establish steps for your IT team or provider to take if your company experiences a data breach or needs to keep networks secure as remote workers log in externally.
A break in the chain doesn’t need to break your business! Adequate planning and appropriate risk transfer strategies will help to ensure your business does not suffer from a loss which affects your supply chain. A robust disaster recovery plan that is regularly tested and updated will help ensure the viability and sustainability of your business. i ii
Gartner Continuity Center SCLAA Newsletter February 2018
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Victoria
Division Report
Charles Edwards - VIC State President
It has been a rewarding half year for SCLAA VIC/TAS, we are proud to have hosted over half a dozen high quality events to date, including networking, though leadership, and on topics ranging across Artificial Intelligence, automation, and brewing logistics! The committee has been hard at work making all of this happen behind the scenes, and has built a strong pipeline to take us through the remainder of the year. We have some exciting things to look forward to in the coming months, including: •
The SCLAA, RMIT, PwC & Pitch Black’s epic “Ideathon” on 22 June
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The 2nd Year of the SCLAA’s award winning Mentoring Program, launching July
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A tour of one of Australia’s most automated retailers, Catch. com
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More Thought leadership events, next up: “Warehouse 360”
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… and more Breakfast Series events, including “Operational Excellence” led by Vative
I am hugely thankful for the committee’s hard work in making all of this happen. I truly believe the SCLAA membership offers more value today than ever before! As a member, we hope you always feel welcome to suggest events that you want us to run for you. We also welcome you to get involved in our fun and talented committee of over 25 active members! Get in touch at vic@sclaa.com.au.
The SCLAA is very excited to announce the launch of our new and improved mentoring program in 2018! Building on the success of the award nominated program from last year, we have kept the best parts of our existing program and added a whole lot more. For mentees the program offers incredible value, with the following key activities to take place: •
Objective and goal setting workshop
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One on one coaching from an experienced mentor
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Lean six sigma “yellow belt certification” from Vative
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Dedicated Career Workshop
• Free entry to all SCLAA thought leadership and networking events More details & Sign up here: https://sclaa.com.au/divisions/tas/ victas-mentoring-program - Dan Esdaile & Rhett Richardson Sponsored by
2018 MENTORING PROGRAM Not only a piece of paper, but a future to grow into Develop a strong network with other Mentoring Program participants Mentees: Exposure to experienced professionals, defining your career Mentors: Opportunity to give back to emerging young professionals
- Charles Edwards (VIC/TAS President)
WHAT’S NEXT? CATCH.COM AUTOMATION TOUR BEST PRACTICE TOURS, 10 JULY On 10 July, just 50 lucky SCLAA members will be able to witness the impressive and industry leading automation of the Catch. com (“Catch of the Day”) Melbourne Distribution Centre. This will be a great opportunity to see peak into Catch’s best practice automation and gauge process insights from an expert in the field. This event is now fully booked - Callum Maxwell & Charles Edwards
MENTORING PROGRAM LAUNCH The SCLAA’s award nominated mentoring program is back, Launching July
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SCLAA Newsletter February 2018
MENTEE & MENTOR APPLICATIONS
PROGRAM
6-month personalized program
REGULAR CHECK INS
END OF PROGRAM CELEBRATION
WORKSHOPS & EVENTS
APPLY NOW
ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN THOUGHT LEADERSHIP SERIES #2, MAY As the Supply Chain and Logistics industry moves toward a fully digital, data-driven future, a powerful new tool has appeared on the horizon: Artificial Intelligence or better known as AI. This event saw three key speakers from CBA, Opturion and CSIRO walk over 60 SCLAA members through the fundamentals of AI, its applications today, and how it is being used to optimisation and cost reduction in supply chains today! It was a great evening of insights, networking food and drink. If you missed the event, don’t worry, you can capture some of the key insights on YouTube! Look forward to seeing you at the next Thought Leadership Series #3 – Warehousing 360! - - Kyle Rogers
MEGATRANS2018 - THE FUTURE OF SUPPLY CHAIN AND LOGISTICS, MAY As a key partner to the MEGATRANS2018, the SCLAA was heavily involved in this national 3-day event. It was a great opportunity to network with the wider industry and engage new members! We were also honored to be able to present the Mercury Awards “Best Storage Solution” to BHD Storage Solutions. Congratulations BHD! - Charles Edwards TECH SURVEY REPORT PUBLISHED THE AUSTRALIAN SUPPLY CHAIN TECHNOLOGY SURVEY, APRIL In February 2018, the SCLAA and Swinburne University of Technology conducted a national survey to assess supply chain and logistics professionals perceptions and actions towards nine key emergent technologies expected to impact the industry over the coming decade. The paper draws some interesting insights. Some technologies are seeing significant investment already, and others offer opportunity due to differences in expected impact-versus-investment in particular sectors. Takeaways include IoT and Big Data Analytics being the most anticipated technologies, with potential competitive advantage opportunities lying across these technologies and Blockchain.
CULTURE & LEADERSHIP BREAKFAST BREAKFAST SERIES #1, MAY On Tuesday. May 22, more than 30 attendees gathered for the SCLAA’s first breakfast series with Vative. The topic of the breakfast was Leading Strategy & Continuous Improvement Cultures, presented by Vative founder, Steven Farrugia.
Which technologies will truly change the industry landscape? Which are just hype? Should we be focusing our efforts in one area or another to remain competitive? Find out move by viewing the free white paper here: www.sclaa.com.au/insights. - Charles Edwards
Over a warm winter’s breakfast at Trunk Melbourne, the session was a great opportunity to network with new connections and unearth different leadership perspectives to apply in everyday business. Thank you to those you attended on the morning and stay tuned for further announcements on our upcoming breakfast series focusing on supply chain and operations excellence. Ryan Foenander
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Victoria Division
Ideathon
The inaugural “Ideathon” super event was held on Friday 22 June in collaboration with RMIT, PwC and Pitchblak! The day was a huge success with 8 teams pitching high quality presentations and ideas to solve trending last mile and waste issues to a crowd of over 80 at PwC Melbourne. Congratulations to the winning team #school4sort, we can’t wait to see where your idea is taken in partnership with start-up accelerator PitchBlak! An amazing effort was made by the participants to complete what usually takes weeks in just one day, highlighting the value of a structured problem solving combined with people empowerment and creative brainstorming! A big thank you to Dan Esdaile, Krystian Ostrowski, Jesse Wilson and Millie Dedrick for their huge contributions to making the day the success it was! Bring on #Ideathon2019! - Charles Edwards
Standing L-R: Amanda O’Brien, Charles Edwards, Caroline Chan, Kim Teo, Krystian Ostrowski, Dan Esdaile, Harrison Cleaver, Federick Nasol, Jonathan Reeve, Rhett Richardson, Simon Van Leuven. Sitting L-R: Matt Lloyd, Lauren Deng
Focus on a Committee Member Introducing Rhett Richardson | Associate – PwC| Committee Member. What is your current occupation? I’m currently a management consultant at PwC Australia. I work in the Business and Performance Consulting (B&PC) team in Melbourne. I have been with the firm for 3.5 years (since graduating from Monash University in 2015).
Why did you join SCLAA? I joined the SCLAA committee in January 2018 with the hope of learning more about the Australia Supply Chain community and growing my professional network. Within my firm, I have aligned to the Supply Chain capability and will shortly start working in this space. I enjoy volunteering and hope to get to know some cool people along the way.
Why did you choose supply chain? I have a Chemical Engineering / Science background and have always been very process driven. Hence my interest in Supply Chain work at PwC. I hope to put into practice a lot of engineering principles I have learned at university.
What is the proudest moment of your career? Working in consulting for approximately 18 months, I have been lucky enough to experience several very different projects and industries. One of my proudest moments was an engagement with the Australian Federal Government and the chance to work with regional childcare providers in several disadvantaged communities around NSW. This was a very socially impactful project and I was proud to be a part of it.
What are your career aspirations? In the short term, I would like to gain more experience in Supply Chain and enhance my capabilities. I would like to continue to grow my professional network and become more senior within PwC. I hope to continue driving key initiatives within the SCLAA and help out where I can.
Queensland Queensland
Division Report Division Mark Healing - State President
TVET T&L - Strategic Planning For Vocational Training Managers Our Queensland State President Mark Healing completed his involvement with the QUT Australian Awards - TVET T&L Strategic Planning For Vocational Training Managers in Brisbane in May. The Australian component of the program was held at the QUT Campus in Kelvin Grove Brisbane. Over twenty students travelled from Vietnam to complete their training. There are a number of projects in Transport and Logistics being undertaken through the Awards including: • • • •
programs covering Higher Education, the formation of an Industry Skills Council in Vietnam, workplace trainer assessor qualifications and the development of standards etc.
Mark was invited along to be part of a round table forum on skills development in the Australian Logistics industry. Linda Macdonald from the QTA Qld was on the stage as well. Mark thoroughly enjoyed the morning spent with the Vietnamese contingent. Thanks also to Glenda Sacre and Lou De Castro Myles for the invitation and the facilitation of the program. Another very successful morning was had by all who visited the C17 Aircraft Site visit at RAAF Airforce base . Another reason for becoming a member of the SCLAA - Join Now.
Group photo in front of an FA18 Super Hornet
Queensland
Division
Site Visit to RAAF Base Amberley QLD 16 May 2018 We arrived at the entry of RAAF Amberley, greeted by the awesome F-111 gate guardian static display. This is where we were met by Wing Commander George Hodgson, our host for the visit, who transported us to 36 Squadron who operate the huge C17 transport aircraft. At 36 Squadron we received a brief from their Logistics Officer, who explained that the C17 is supported by a global supply chain, with the aircraft able to receive/change parts almost anywhere in the world with countries that operate the C17. This ensures that the C17 is kept in top working order and can respond to a crisis quickly. We were also informed how busy the C17 is and the many places they go each week. After the presentation we were able to view a C17 up close, and had the opportunity to talk to one of the pilots who answered all of our civilian type questions. The on base C17 logistics warehouse operated by Boeing was the next stop and what an eye opener it was on what is required to keep these planes in the air. They had three engines in stock, just in case they needed to change any out. The last stop was a highlight where we could view an 82 Wing, F18 Super Hornet and again we got to see the aircraft up close with maintenance and logistics staff showing off their plane and explaining its operation and the maintenance required to keep them in the air. I would like to thank the Air Force, in particular Wing Commander George Hodgson, 36 Squadron and 82 Wing for the fantastic site visit, where we got to see how important logistics is in keeping these amazing aircraft flying each day. I look forward to the next year's site visit.
Walking on to C17 for inside tour
Inside of the Boeing warehouse
Inside the C17
Group Photo in front of the 36 Squadron SCLAA Newsletter February 2018
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Institute of Transport and Logistics Award Night
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SCLAA Newsletter February 2018