October 2017 p: 1300 364 160
2017 Australian Supply Chain & Logistics Awards Friday, 17 November 2017, The Grand Ballroom, Luna Park, Sydney 6pm - 12.00pm The annual Supply Chain & Logistics Awards will be taking place on Friday, 17 November in the Grand Ballroom, Luna Park, Sydney. These historic and prestigious National Awards, presented by the SCLAA, are in their 57th year, making them the most sought after, recognised and influential awards across the Supply Chain, Logistics and Transport industries. The SCLAA is honored and proud to announce that Dr John Gattorna, Executive Chairman, Gattorna Alignment, will be the guest speaker at the ASCL Awards Gala Dinner. Dr Gattorna stands at the forefront of supply chain ‘thought leadership’ in the world today, and his work has influenced many of today’s leading multi-national corporations. John was the recipient of the 2016 ASCL Industry Excellence Award.
Book your tickets online now
Dr John Gattorna TICKETS ON SALE NOW CLICK HERE
Join the SCLAA - For more information on how to join the SCLAA go to www.sclaa.com.au or follow us:
Call for Submissions Now Open Submissions close 16 September 2017
SCLAA Chairman - Amanda O'Brien
Amanda O'Brien is the 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.
There are only 8 weeks until Christmas, and the Supply Chain & Logiistics Association of Australia is working on several events in the lead up. It has been a very busy period for the Board and its Committees. The Association continues to strive ahead with its new Strategic Vision which ensures we drive Competitive Advantage to both our valued members and the wider industry. One of the events that has been publicised widely after a very successful day is the Women in Logistics Lunch held in Melbourne on 20 October. What made this event different is that a number of men attended this event to collaborate - an important and essential variation to other events in the market-place. There can be no change in diversity if there is no collaboration with what has been a male dominated space, particularly in transport and logistics. It is remarkable that in 2017 the wage gap is still 16.1% in this industry and there is a growing consensus that this is still an issue that needs further focus from Government and industry. In other news, I attended the Australasia China Cities Summit & Business Forum as a guest at Victoria Parliament House. In attendance were over 200 major Chinese businesses, industry associations, mayors and ministers in attendance. SMEs, economic trade departments, trade representative and industry professionals from 40 Chinese organizations cities and provinces were present. Australia China Cities Summit & Business Forum was opened on 21 October, receiving support from governments, associations and enterprises in China. Covering Australia, New Zealand and the South Pacific area, it attracted culture exchanges as well as economic and trade cooperation between China and South Pacific Countries. This event was a major platform between Australasia and China to promote multilateral communication, cultural exchange, sister-city relationships and business cooperation at all levels. It was interesting to see that the regional cities are taking up this alliance with aplomb and the Mayor of Shepparton signed an MOU with China 2
SCLAA Newsletter October 2017
to develop the growing trade between cities, particularly in the Agriculture sector. Over the last decade the importance of trade between China and Australia has grown four-fold. Australia now buys more manufactured goods from China while we also export much larger volumes of raw materials. This has had a big benefit for our resource companies and it has been one factor in the rise of the Australian dollar China has developed very quickly. Urbanisation and industrialisation has seen millions of workers leave rural areas and move to jobs in the fast growing cities. This has propelled demand for steel to build houses, factories and infrastructure. This development is likely to continue at pace for some time as living standards continue to increase and the Chinese government invests heavily in infrastructure projects such as railways. In the next four years, for example, China plans to build a further 35,000 kilometres of high-speed railway. There are two key reasons why China’s development has had such a powerful impact on Australia. The first is distance. In the global iron ore market, Brazil is the world’s other major supplier. Australia is closer to China and can deliver iron ore more quickly and more cheaply. Australia enjoys a price advantage estimated at $12 US dollars per tonne. The second reason is that Australia’s coking coal, used for the manufacturing of steel, is of a very high and desirable grade – substitution is not easy. That said, this is gradually changing with the development of high-grade deposits in Africa. Based on these advantages, and the likely course of economic development in China, it is clear that China will remain a very important trading partner for Australia in the coming decades. Continued strong demand for resources is good news for Australia’s resource companies. Resource and Energy companies make up 38% of the S&P/ASX 300 Index. Income produced by these companies trickles down into the rest of the economy and benefits other sectors. The stronger Australian dollar makes our imports cheaper. This puts downward pressure on inflation, allowing the Reserve Bank of Australia more leeway with how they
manage interest rates. A lower interest rate benefits households with mortgages and reduces companies’ interest payments. These strong links between China and Australia explain the strong investor focus on policy developments in China. The Chinese government still exerts a considerable degree of control over the economy. Policy decisions aim to ensure growth is sustainable and inflation manageable. So far, they have managed this task quite successfully The many recent events included the Webinar: Robotic Process Automation in Shared Services with the reputed Global Payroll Association (GPA), a central hub for ‘allthings payroll’, joined by our esteemed customer and global specialist in energy management and automation, Schneider Electric. Robotic Process Automation (RPA) is the current reigning champion of simplifying structured data with the level of perfection and consistency comparable to the most efficient of humans. Given that GIC’s are looking to reduce spends but increase productivity & performance through ingenious means, how does RPA come to the rescue? This much anticipated webinar explored this and other issues.
SCLAA WA and ASCI held another great event - Unlocking Value through Constraint Innovation (aka Managing “Herbies”). International Continuous Improvement expert Lewis Trigger shared common sense, and practical solutions drawn from the Theory of Constraints to address the challenge of “Unlocking Value”. These and all other events held Nationally, of which there are many, can be found by going to our Calendar of Events on the SCLAA website. The SCLAA's most prestigious event, the 2017 ASCL Awards will be held on 17th November at the iconic Luna Park. We are now calling for Sponsorship for these prestigious National Awards. This is a keenly anticipated gathering of industry experts and clearly recognised as our event of the year. Please head to our website for more exciting developments or contact our National Secretariat on 1300 364 160 for further information on how you can become involved or join our professional Association.
Book your ASCL Awards Tickets Here
SCLAA Newsletter October 2017
Finalists announced for the 2017 Australian Suppply Chain and Logistics Awards The Supply Chain & Logistics Association of Australia, in conjunction with Dematic, today officially announced the finalists for the longest running and most prestigious awards program in the industry. Having served the industry for fifty-seven years, the ASCL Awards are the most recognised and esteemed awards for an individual or a company to receive.
program. The program assists participants to improve their personal performance and productivity as well as that of their team. The prize includes consultation in the workplace, assistance in the development of some professional goals, all course material, attendance at 10 interactive workshops, facilitation, client support and access to LMA’s unique on-line feedback system.
Winners of the Australian Supply Chain & Logistics Awards will be announced on at the ASCL Award Gala Dinner to be held on Friday, 17 November 2017 in the Grand Ballroom at Luna Park, Sydney. Click here to register to attend the ASCL Awards Gala Dinner.
Industry Excellence Award This Award recognises and acknowledges outstanding achievements and contribution by an individual currently engaged across the supply chain industry. Persons nominated for this most prestigious award will be leaders and will have made significant change to the way a supply chain is managed and improved either academically, physically or technologically. Originally awarded in 1987 and dedicated to Mike Munns, FAIMM, this award remains a cornerstone of SCLAA’s commitment to recognising and promoting the importance of the supply chain industry and its people to continuously improving organisational strength and growth. Finalists are: • Mark Skrzypiec, Miele Australia • Pooja Bhatt, Pitney Bowes • Sharon Rudd, TNT
Future Leaders Award The purpose of this award is to provide incentive and recognition to young supply chain professionals who are both currently working in and wish to continue their career path. Nominees for this award should be able to demonstrate their passion and commitment to taking the supply chain toward tomorrow. The SCLAA wishes to showcase finalists and provide impetus to continue to attract the brightest to the industry. First awarded in 2009 and dedicated to Vince Aisthorpe. The winner of the 2017 Future Leaders Award will be awarded an enrolment into the Leadership Management Australia’s ‘The Performance Edge’ 10-week development
SCLAA Newsletter October 2017
• Corey Carl, Young Guns Container Crew • James Murrey, Claims Central • Katherine Fawcett, Rexel Holdings • Levi Del Fierro, Flip Group • Nathan Tanner, 2K Container Services • Patrick Jordan, Australia Post • Primo Danieletto, ABM
Supply Chain Management Award Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. This award recognises an organisation that can demonstrate significant achievement within a section or across their entire supply chain. Nominees should be able to clearly state the design and achieved results of the project or process that was envisaged and then implemented. The trophy was first awarded in 1984 and is dedicated to Doug Beattie. Finalists are: • Dassault Systemes Australia – Quintiq • Getinge Australia • Orora Limited • National Mailing and Marketing • Northern Co-operative Meat Company Ltd • SmartTrans • Toyota Motor Corporation
Training, Education & Development Award Training, education and development remains a vital part of allowing knowledge to be utilised for new ideas and supply chain improvements to be discovered and then implemented This award will be presented to a
company that can best demonstrate their committeemen, application and results of providing training, education and development of their people.. The trophy was first awarded in 2002 and is dedicated to the late Professor Peter Gilmour. Finalists are: • • • •
Albert Amato, eStore Logistics Danielle Mulvey, Learning Sphere Training Solutions Manu Chaudhary, Polar Fresh Cold Chain Services Samantha Martin-Williams, Hunter Valley Coal Chain
Information Technology and Management Award Information remains the most important requirement of any supply chain. Information technology is where the majority of supply chain improvements have been made. Nominees for this award will demonstrate where their use of existing or new technology has provided significant improvements to their management of information and/or their supply chain processes. The trophy was first awarded in 1994 and is dedicated to the late Len Smith FAIMM. Finalists are: • • • • • • • •
Anchanto Pte Ltd Datapel Systems Go People Pty Ltd Health Promotion Board iCOS Live Australian Pty IFC Global Logistics Linus D’Crus, SmartTrans Express Northern Co-operative Meat Company Ltd
Environmental Excellence Award The ASCL Environmental Excellence Award recognises corporate leadership contributing to the solution of environmental sustainability within our industry through performance and action. The trophy was first awarded in 1966 and is dedicated to Mr Ken Pike. Finalists are: • Erica Santy/Oliver Milliner, Kathmandu • Simon van Leuven, Vanden Recycling
International Supply Chain Award Recognising that Supply Chains know no boundaries, the ASCL International Supply Chain Award is given to a Company, Association or an Individual that may operate internationally and are able demonstrate their capability, commitment and achievements across any spectrum of the sciences, practices, disciplines or efforts to promote and improve the knowledge and acceptance of the importance of the supply chain. Finalists are: • Ashley Allchurch, National Department of Health PNG – Health and HIV Implementation • Far Eye • Health Promotion Board (HPB), Ministry of Health, Singapore • Localz • Northern Co-operative Meat Company Ltd • PGT-Reclaimed (International) Ltd • Saigon Coop / Xact Solutions • William Weatherald, MRX Technologies
Logistics Management Award This is a new award and for one of the longest standing disciplines of any supply chain and replaces the Storage and Materials Handling award. Recipients may stem from nominees for any of the other SCLAA awards at the judges’ discretion, or from a direct application, where the demonstrated achievement, improvement or results have required a logistical approach to improvement or major change to their logistics management. The winner of this Award will be announced on the night. To register to attend the 2017 Australian Supply Chain & Logistics Awards visit the 2017 ASCL Awards Gala Dinner page on the SCLAA website. For any queries, please contact the SCLAA National Secretariat on email@example.com or 1300 364 160
Click here to book your tickets for the ASCL Awards Gala Dinner on 17 November, Luna Park, Sydney. SCLAA Newsletter October 2017
Women in Logistics Lunch
SCLAA reflects on Women in Logistics Lunch The Supply Chain & Logistics Association of Australia (SCLAA) has reflected on its 2017 Women in Logistics Lunch, highlighting gender politics and progress in the commercial road transport industry. SCLAA Chair, Amanda O’Brien, has said that over 150 people attended the event and taking gender out of the conversation was one of the keys to overcoming adversity and encouraging change. “Women working in logistics are competent and purposeful individuals who strive to work and be heard in an unyielding industry,” said O’Brien. “It is not only about being invited to the table it is about being asked to make a contribution at that table that counts. It is only through continual collaboration with industry that unified voices will be heard.” The keynote address by Victorian Transport Association (VTA) CEO, Peter Anderson, reportedly sent a strong message regarding the value of and the work by women in the supply chain. Royal Australian Airforce Air Commodore – Director General Logistics, Christine Tolson, also addressed the 150 attendees. “Women in the workforce is not a women’s issue, it’s a business issue,” said Tolson. “It’s about outcomes, productivity, resource, liability, risk and return. It is really important that our processes and policies; how we think and behave are reliant with and support our objectives in terms of employing women in logistics. “So have a think about what you are going to do differently from this day forward. How and where are you going to critically examine and perhaps change strategy, policy, process, behaviour or language? “It matters not whether the change you make, the thing you do differently, is large or small, what matters is that you make a difference,” she said. Article from Prime Mover Magazine
SCLAA Newsletter October 2017
Brad Coppins Cashflow Finance
Amanda O'Brien - SCLAA Chairman
Julie Glynn - Employsure
Christine Tolson - Australian Airforce
Lydia Kendray LMA SCLAA Newsletter October 2017
Women in Logistics Lunch
SCLAA Newsletter October 2017
Women in Logistics Lunch
SCLAA Newsletter October 2017
The SCLAA is proud to welcome three new National Partnerships -LMA / Think Perform, Oz Labour Force, and Anchanto.
Welcome New National SCLAA Partner - LMA and Think Perform
LMA is the proven best choice for unlocking the potential in people to positively impact results and the bottom line. At a time when industry in Australia and New Zealand is finding it increasingly difficult to attract and retain talent, investing in the people you already have is not only wise, it’s crucial. LMA has been empowering and developing people and driving better results and profits for over 45 years. We have been at the forefront of people development and are the best at what we do – delivering exceptional leadership, performance, sales and people development solutions. We work with organisations to boost their bottom line by: • Developing the leadership of their key people •
Improving their employees’ performance and productivity.
LMA has worked with over 130,000 people from thousands of organisations across Australia and New Zealand enhancing their leadership skills, team dynamics, performance, productivity and sales skills. Call 1800 333 270 or click here to speak to us about how we can improve the productivity and performance of your people.
SCLAA Newsletter October 2017
Think Perform is the proven best choice for empowering people to drive continuous improvement and to positively impact culture, results and the bottom line. Think Perform are leaders in delivering transformational business improvement programs, built around strong values and respect for our client organisations and their people. We are the best at what we do – partnering with organisations to achieve operational excellence and a sustainable future. Think Perform’s unique delivery process empowers employees at all levels of the organisation to deliver sustainable performance improvements. This approach underpins and inspires a cultural transformation. People have the power to deliver a performance edge. However, before this power can be harnessed or leveraged, people need to be developed and equipped with the skills and attitudes to drive sustainable change. They also need to be engaged, committed and encouraged to consistently look for improvement opportunities that contribute to the achievement of the organisation’s objectives. As a member of Thrive Alliance, we have over 45 years’ experience in training and developing people to achieve greater performance and productivity in the workplace. Put simply, we drive sustainable change which leads to better results. Call 1300 667 099 or click here to speak to us about how we can help you to reduce waste and improve the operational efficiency of your organization.
OZ Labourforce was conceived in 2009, and proves a suite of Labour & Logistics Management Services to Transport, Warehousing, 3PL & Intermodal Operations across Australia whilst specializing in “Fixed-Price” Container packing/unpacking services. Since then, OZ Labourforce has traversed from their head office and National Training Centre in Brisbane, with offices and training centres in every state of Australia directly employing over 150 staff. The experience of both Directors who have over 20 years involvement within the Logistics Industry traversing 3 continents at board level allowed us to use the insights of all 3 continents. The directives were simple from the outset. Build a business backwards from the clients perspective, encompassing and surpassing each and every Industry, Organisational & Legal requirements along the way. Recruit full time professionals in all areas of the business and provide the highest quality training to everyone with a clear, ongoing, comprehensive training program throughout. Implement and Operate and ‘Investors in People’ program defining and structuring long term career paths by continue to develop key skill areas within our most valuable asset. Redefine the measures taken to ensure that safety is not just managed, but that every single opportunity is exhausted to know our team have the most comprehensive training and understanding of safety and is becomes their natural default setting at the forefront of their mind at all times. On-line training and simulation programs, practical courses, accreditations and examinations are all part of our comprehensive and strict Safety Management Plan. Untie all the ‘red tape’ and operate a unique system that offers complete transparency to our clients throughout all areas of our operations. No more self-regulated auditing but live- in real time auditing giving every single client 100% security & confidence we undertake all activities on your site, meeting all compliances, regulations, Laws, by Laws, safety first whilst operating with a high degree of social conscience. Engaging OZ Labourforce is your cast iron guarantee to yourselves and your clients you have absolved and mitigated every conceivable industry directive that causes apprehension by the engagement of 3rd party contractors OZ Labourforce is dedicated to creating long term cohesive relationships with all clients as ‘Service Partners.’
Anchanto, through its proprietary SaaS products and global partnerships, delivers exceptional service & world-class solutions, driving Brands, Retailers, 3PL Players and Online Sellers to equip themselves with eCommerce capabilities. The company is currently operating in 10+ countries, serving global players like 3M, Garnier, L’OREAL, Luxasia, DKSH, Maybelline, Essilor, Ametsuchi, Ozify, Tom & Teddy, Pos Malaysia, and many more. The company has ready integrations with 30+ leading regional and global marketplaces, such as The Iconic, Amazon, and eBay in Australia. Anchanto’s Offerings Include: 1. E-commerce Warehouse Management System: An Enterprise SaaS platform that helps order, inventory & warehouse management for B2B and B2C eCommerce. 2. SelluSeller: An online omnichannel SaaS application that offers a one-stop solution to sell on multiple local and cross-border marketplaces. 3. Cross-border Partner Network: End-to-end cross-border fulfillment services through our partners running on Anchanto’s software, including seamless customs clearance, real-time tracking, last-mile delivery, and returns management. 4. Global Fulfillment Partner Network: Anchanto offers sellers and consolidators complete visibility and control over their logistics processes along with cost-effectiveness of dealing on a single platform. Know more about the Company here - www.anchanto.com
SCLAA Newsletter October 2017
Meet our latest Certified Professional Logistician - Andrew Miller
Andrew is a Melbourne native who completed his Bachelor of Commerce at Deakin University. He then joined the Royal Australian Air Force (RAAF) as a Logistics Officer in 2003. As a military logistician with over 14 years of experience, Andrew has performed a variety of operational supply chain roles for Defence at both the strategic and operational levels. Notable appointments include: •
Senior Supply Chain and Operations Manager (Joint Logistics Command)
Aviation Transport and Logistics Manager (NATO-Afghanistan)
Deputy Chief Joint Movements Control Officer for the United Nations (Sudan)
Deputy Chief Logistics Director for the United Nations (South Sudan)
Andrew completed his MBA through Deakin University in 2016 and is currently employed at the Australian Defence Force’s (ADF) Joint Logistics Command headquarters in Melbourne providing mission support to Australian military forces in the Middle East. In his spare time, Andrew enjoys learning Spanish, running and playing chess.
SCLAA Newsletter October 2017
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 firstname.lastname@example.org
I was at the SCLAA "Women in Logistics" Lunch recently. It was a well-attended and very interesting event that raised a number of questions about our society. Earlier In October I participated in a post committee meeting get together with some excellent people at a Victorian Regional Hospital. In discussion with a Board Member I mentioned my opposition to gender quotas in recruitment and promotions. A very lively and wide reaching debate ensued!
However a "light came on" when my colleague said the problem is not intentional bias, but it is the hidden bias from traditional cultural laziness. That is the issue of course! I will strongly publicly argue in support of equality free of any bias be it religious, gender, race, cultural, political etc. Yet, can I be sure my lifetime experiences and upbringing-in (earlier times) have not covertly led me to decide in favour of the comfortable past biases. Thinking back over the years I can see where the environment at the time has probably convinced me to act with personal bias. In my childhood and teen years religion and political persuasion were serious decision making issues. Females were usually consigned to the housewife and homemaking roles. I just assumed that was the way
things were meant to be. My Mother exercised significant influence on me and my siblings, but in retrospect, I see now she was strong willed and always standing up for the benefit of the family and the community. She was absolut ely resilient and never subservient. I read a book titled, "The Great Upheaval". It is a huge tome canvassing many of the great world events that were somehow linked in creating a new world order. It includes many chapters on Catherine the Great of Russia. Catherine was a tyrant who very nearly ruled the entire world. I am convinced she did not know anything about a glass ceiling or gender bias! By the way, the Great Upheaval should be on your reading list. Get it now! You will be fascinated. There are many examples of women who succeeded despite the strength of the "hidden bias". Some of them were on show at the SCLAA Women In Logistics Lunch. At that Lunch I recounted an experience with a woman I worked with. Jill Holland was a part time after hours office cleaner when I first met her many years ago. I had just been promoted to a very senior job and showed my enthusiasm by getting to work early and leaving very late. I learned that from How to Succeed In Business! One evening I was dragging a box of papers (I was taking home to work on) across a tiled floor in the general office.
Jill Holland yelled out that she would decapitate me if I ever did that again. I mentioned I was a senior manager. She said she didn't care if I was Prime Minister. Scuffing her floor was not allowed! By the way Jill said," I can tell you what the staff is saying about you". Anyway, Jill and I worked together for another twenty years. She educated herself, worked hard and never lost her honesty and integrity. When I left that Company, Jill was a senior officer in the Purchasing Department. She was always willing to tell me what the staff were saying about me!
Like Catherine the Great of Russia Jill Holland never took any notice of the glass ceiling or any bias. She earned respect and reward because she was an outstanding person and performer. In recent years I can state without any doubt that I made decisions based on the best person for the job. I still do not accept quotas as a way of pursuing equality. Convincing the population on the good sense of eliminating the hidden or obvious bias is the best way to go. Differences in capabilities of the genders is something to be celebrated. Don't let pretence and hype destroy a real opportunity to make a "great upheaval" in equality throughout our communities. The time is now to educate and inspire people - both men and women - to make unbiased choices in every field of endeavour. My wife agrees as long as chocolate is not banned in workplaces! I applaud SCLAA and Amanda O'Brien for moving us towards the real equality goal.
Martin Luther King said, "injustice anywhere leads to injustice everywhere"
SCLAA Newsletter October 2017
2017 EFT Global Logistics report Talking about the state of the logistics industry today. Andrew Kirkwood
While 2016 was a year of opportunity, 2017 is setting up to be a defining year for shippers and logistics service providers (LSPs). New industry research from Eye for Transport (EFT) shows that despite the rapid pace of change in the market, shippers and LSPs continue to improve the nature of their strategic relationships, recognize the value of technology and innovation and anticipate growth outside their traditional businesses. This year’s EFT 2017 Global Logistics Report also shows that the industry seems to be reaching the consensus that the tech-driven LSPs are the future of business.
Innovation is a Key Driver for Business Growth Logistics providers identified similar threats in 2016 as 2017 to their growth in 2017, however, the number of respondents reporting each of the top threats (competition, stagnant growth and commoditization) diminished by up to 6.5 percent. This year, 26.9 percent of survey respondents said competitors are the biggest threat to their business growth, 21.2 percent said it’s stagnant global growth and 19.2 percent reported it being commoditization. About 28 percent of survey respondents also revealed that innovating to create new business areas was how they gained most of their new business over the past 12 months. There’s a clear shift taking place in 2017 where innovation is now a key driver for new business. This is happening both in terms of using pure innovation to gain new business, as well as working with existing customers to create business in new areas. However, it’s important to note that innovation as a percentage of areas logistics providers are gaining business dropped between 2016 to 2017. This suggests that logistics businesses are diversifying their new business acquisitions across several different areas.
Logistics Providers Continue to Struggle with Innovation Logistics providers identified similar threats in 2016 as 2017 to their growth in 2017, however, the number of respondents reporting each of the top threats (competition, stagnant growth and commoditization) 14
SCLAA Newsletter October 2017
diminished by up to 6.5 percent. This year, 26.9 percent of survey respondents said competitors are the biggest threat to their business growth, 21.2 percent said it’s stagnant global growth and 19.2 percent reported it being commoditization. About 28 percent of survey respondents also revealed that innovating to create new business areas was how they gained most of their new business over the past 12 months. There’s a clear shift taking place in 2017 where innovation is now a key driver for new business. This is happening both in terms of using pure innovation to gain new business, as well as working with existing customers to create business in new areas. However, it’s important to note that innovation as a percentage of areas logistics providers are gaining business dropped between 2016 to 2017. This suggests that logistics businesses are diversifying their new business acquisitions across several different areas.
Customer Service in Favour of Innovation Historically, logistics providers and their customers have had difficulties with innovation – assigning responsibility and ultimately driving it. Innovation continues to be the top choice for where shipper customers found their LSPs to come up short, but it’s important to point out that compared to 2016, this choice has dropped in popularity. On the other hand, customer service has risen significantly since 2016. Customer centricity has become a significant priority for many businesses in recent years on the back of new technology enabling customers more visibility over the services they use.
Tech-Driven LSPs are the Future of Business The data revealed that 47.6 percent of logistics respondents felt tech-driven LSPs were the future of the industry. Based on the response shippers have given on the companies, this number will most likely increase. Shippers overwhelmingly classified tech-driven LSPs as an opportunity to cut costs and drive efficiencies. This could have a transformation effect on logistics businesses with the abilities shippers have at driving the industry.
Commoditization is Evolving The shipper response to tech-driven LSPs suggests that this industry shift might have a commoditizing effect on the industry. However, it’s only part of the commoditization picture which is in a state of flux.
Warehousing, for example, has dropped as a service considered commoditized whereas forwarding has jumped.
Logistics Providers Are Starting to Catch Up After years of slow technology and innovation developments, logistics providers are starting to catch up. And after years of investments and process changes, shippers are starting to slowly recognize LSPs for their technology and innovation abilities. However, one of the key changes also seems to be the success of technologydriven logistics providers. That is, asset-light logistics companies that utilize technology as the central offering of their business are gaining noticeable traction within the industry. However, a conundrum is quickly developing. For years, from the perspective of logistics providers, commoditization has been one of the biggest challenges they face. Logistics services have increasingly been squeezed as supply chains look to cut costs. The technological advancements and automation of logistics
has played a role to help businesses differentiate themselves. However, as automation becomes standard across logistics businesses, it translates into both cost savings and cost cutting, resulting in increased commoditization pressure on the industry. But, unlike in previous years, logistics providers appear to be on top of it. So, while technology might facilitate commoditization, logistics providers are turning to nontraditional areas of their businesses to differentiate themselves. One area gaining early momentum is in terms of customer service, emphasizing the personal nature of the business. Access the full report here. Andrew Kirkwood is Senior Vice President at JDA Software with global responsibility for 3 PL and Supply Chain Execution Customers. Within this role, Andrew is accountable for developing the go to market strategy, business development, sales and success of JDA’s customers utilizing JDA's Intelligent Fulfilment Solutions.
Warehouse Labor Management ™
“With our labor management program that we’ve been using with JDA, it’s a complete differentiator for us. It’s allowed us to go in ways that we never could’ve imagined over ten years ago.” Jim Chamberlain, Sr. Director, Industrial Engg. & Continual Improvement DSC Logistics
Take the first step to reshape your Warehouse Labour efficiency with this complementary SelfAssessment. Visit now.jda.com/wlmsa
SCLAA Newsletter October 2017
How to cut through the complexity of asset finance Rod Berryman - Business Development Manager Fingo Finance The role of every business owner and CFO is to achieve the best financial outcome on the best terms in all aspects of their respective businesses. That’s a big ask, particularly when your specific area of expertise may have little in common with the skills required to know the nuances of the contract you’re negotiating or the outcome you’re seeking to achieve. One of the most common and frequent areas where mistakes are made is the way in which banking facilities and finance solutions are applied in your business. You could be the greatest logistics company on Earth, but it doesn’t necessarily follow that you have a deep and confident knowledge of the different mainstream and bespoke means by which your competitors fund their businesses and the cost, taxation and cash flow benefits they achieve by getting it right. But that’s easier said than done, especially when banks, brokers and lenders often look and sound the same. They all tell you they’re the best at what they do so how do you cut through all the sales spiel and get to the facts? First of all, you need to recognise that asset finance isn’t just about borrowing money. It’s a specialist area of lending that is about equipping businesses with the plant, machinery, infrastructure and transport fleet to increase throughput capacity, boost self-sufficiency, grow, employ and prosper. So, you should look for experience. Don’t just ask for an interest rate – that’s the lowest common denominator. Ask the prospective banker or broker if they can describe the equipment you’re buying and its intended purpose. It’s critical for them to know this so they can write up a worthy credit submission and have it approved on the best terms for which your business will qualify. Don’t give them your ideas - ask for theirs. Instead of asking for a specific term and balloon, ask what they would suggest and why. These are simple questions but they cut through the competence barrier with relative ease. In a recent article for The Advisor magazine, Commercial Asset Finance Brokers Association of Australia President and Quantum Business Finance director, David Gandolfo said: “Our members can do plant, machinery, equipment, infrastructure, they can import machinery in from overseas, they can organise lines of credit, they can do transaction in foreign currencies, they can do progress payments in different countries as well as here, they can do entire projects. And all that… certainly 16
SCLAA Newsletter October 2017
requires expertise, not just in putting the loan submissions together, but also putting together the solution for the end customer.” Put limits in place. Have an overall financing strategy and talk to your broker about putting a couple of key facilities in place. This is an area where brokers have a huge market advantage over business bankers, not just because of their depth of experience and career longevity, but because they can select the best deal from a range of lenders and not just your own bank. By having limits and master agreements you’ll save on costs and administration and have an uninterrupted source of funding for that brilliant opportunity you need to jump on quickly. Different lenders have different credit requirements and varying appetites for different asset classes. So, the lender with whom you fund your vehicle fleet is unlikely to be the one with whom you fund your machinery. Even the finance type (say fully maintained operating lease with fleet usage and FBT reporting) is likely to be different to the finance lease or chattel mortgage you utilise to fund your machinery purchase. When you purchase equipment from an overseas supplier, most banks can’t seamlessly combine their trade and asset finance products in an end-to-end solution, but experienced brokers can arrange for deposits, partial payments and duties to be paid as required and in any major currency, without utilising your overdraft or relying on real estate security. This is referred to as a Letter of Credit/Lease in Escrow facility and fixed repayments don’t start until the equipment is delivered and usually commissioned. In summary, follow these six very simple tips: • Know what solutions are out there – or talk to someone who does • Get the right type of facility for each requirement • Have an overall strategy, not an ad-hoc bunch of loans • Achieve the above by working with the right provider for each requirement • Your bank is an option, not always a solution • Make sure your accountant and your broker are talking to each other That last point above is critical. Your accountant has an overall strategic plan for your business and your broker has specific products at great rates and terms that will fit with your accountant’s plan, but neither can achieve the best outcome unless they put their plans and expertise together. For more information, visit: www.fingofinance.com.au
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 October 2017
Gary Pearce - ACT/SNW President Attending our September Member meeting was Mr Peterson Collarde (pictured), the local Canberra Business Development Manager for Employsure, one of the SCLAA’s newest National Partners. Peterson is the nominated Employsure contact for our ACT/SNSW Division and provided us with an overview of the services available to our members, focusing mainly on workplace relations (recruitment procedures, employee documentation, performance management, industrial relations, Workplace Health & Safety etc). One of our corporate members has already had in-depth discussions with Peterson, indicating that the services being offered could be of significant benefit to a number of our local businesses. We are also in the process of finalising arrangements for a presentation by Employsure to all of our Divisional members and invited guests towards the end of November. One of the ongoing challenges for our ACT/SNSW Division is in trying to build our membership numbers, a task that is made more difficult because of the nature and make-up of business and industry in this region. As most people know, federal and territory government (including Defence) is still the substantial employer in the ACT, with nearly 50% of jobs belonging to the public sector. Additionally, we have a relatively small regional population, very little manufacturing presence, and
virtually no administrative head office representation for Australia’s larger companies. One avenue we are going to explore to raise our profile in the ACT Region and create opportunities in membership and partners is to examine the Canberra Region Defence Industry Directory, which the SCLAA ACT/SNSW has lodged an application to be included. Defence Industry has a large footprint in the ACT region, and there are potential opportunities to be explored. A media release from the ACT Government early this year highlighted an ACT Defence Industry Advisory Board had been established. This release indicated that the Department of Defence already injects about $3.1 billion into the Canberra region’s economy and creates about 16,800 jobs. There are more than 100 entries in the Directory comprising companies, government agencies and higher education and research organisations. Our aim is to raise our profile, prove our relevance and build a broader interest in the SCLAA from participants within this industry. We will again have member nominations in this year’s ASCLA Awards, with National Mailing and Marketing nominating for both the Training, Education & Development and the Supply Chain Management categories. We wish NMM all the very best as our Divisional representatives at this year’s Awards, and will be encouraging other members to also put their names and credentials forward for the 2018 Awards. We also wish all other nominees every success in what is promising to be a very popular and entertaining evening.
Introducing Iconomy Fulfilment Tim Andrew CEO Localz The On Demand Economy is trending across all areas of retail, which is interpreted by most as instant, next hour or at worst same day fulfillment of an order. But what we have found through our research, working closely with our clients and their customers, is that the actual customer expectation is paradoxically both easier to fulfil and more demanding. It is:
my boiler gets serviced/my broadband gets installed/my parcel gets delivered?
What I want, where I want and when I want it.
A better parcel delivery experience means I am unsatisfied with having to wait in half the day (or worse) for a service technician to arrive. Companies who can’t meet this expectation are under threat from new entrants who arrive and can deliver, they will rapidly win massive market share.
Customers are demanding to define the delivery time (to an ETA window level of 1 hour), but that doesn’t necessarily mean right now. It might be 4pm tomorrow after school pick up, 8am on Monday before work or 10am on Saturday. We call this new economic reality of heightened consumer expectation the Individual Economy - or Iconomy for short. Iconomy is driven by consumer demands. There are a number of macro themes and also some pioneering companies that have established what the new expectations are. These macro themes are: 1. 2. 3. 4.
Individualism (or “I’m a unique snowflake”) Speed of expectation adoption Market consolidation Enabling technology
1. Individualism (or “I’m a unique snowflake”) Marketing and advertising has evolved from a one to many message that broadly categorises people into groups and then provides the ‘best fit’ message to the group into a highly personalised and targeted one to one communication. Using the digital insights we leave about ourselves through our online activities, smart companies use this data to reflect back to us our unique traits and reinforce that we are indeed individual.
2. Speed of expectation adoption Humans have a marvelous ability to adapt to change, particularly where that change is perceived to make life easier. We swiftly adopt new technology and then transfer the expectations of what this tech does for us to other situations. For example, if I can self-serve checkin to a flight, why can’t I self check-in to a hotel? If I can nominate an hour time-slot for my supermarket order to be delivered to my house, why can’t I do the same when 20
SCLAA Newsletter October 2017
We see how quickly technology is developed and have little loyalty and patience when our new expectations are not met within weeks. Our buying patterns shift almost subconsciously to those brands that provide the experience we find most convenient and simple.
3. Market consolidation Amazon has rapidly grown to over 50% of eCommerce in the US and having just entered Australia we anticipate a similar story as in other markets. While eCommerce is still only a portion of total spend, it continues to grow rapidly and cannibalise parts of the traditional retail model forcing incumbents to adapt or die. This has a ripple effect into related industries too. If you’re in the business of shipping parcels for large retailers, this consolidation effect could be bad news. As the number of retailers (shippers) that control a large portion of the amount of parcels being sent contracts, their buying power grows. Logistics companies turn from price setters into price takers as the cost of what the retailer is willing to pay is dictated rather than negotiated. To maintain some sort of operating margin, the logistics companies will also be forced to either consolidate and/or be orders of magnitude more efficient, which leads us to…
4. Enabling technology Rising above the noise and hype about drones, robots and underwater or flying warehouses is important to understand what is likely to happen and when. The pressure of Massive growth in volume of deliveries and negative margin growth means logistics companies in particular need to be at the front of adopting technology that strips costs and improves predictability and experience. History shows us that industry most often leads the adoption of new technology before it filters to consumers, and use it to automate the simplest tasks first. A massive volume of trucks follow the same route, stops and
schedule every day. Various simulations: and articles suggest that owning and running an autonomous linehaul truck will be 20-50% cheaper compared to existing manned vehicles. Expect this first mile of the supply chain to be automated first as it is much simpler than the complexities of crossing crowded pavements, climbing stairs and navigating the general urban mess of last mile.
The individual consumer is driving the growth of Iconomy, we are expecting to see companies meet growing demand with new delivery models, like crowdshipping, on-demand delivery services, evening and weekend delivery. Survive and thrive businesses are investing in last mile solutions that increase consumer choice and flexibility, whilst helping to shorten delivery times and lower delivery costs.
Localz is the leading provider of software services that help enterprises in the retail, logistics and services sectors rapidly transform their businesses to thrive, not just survive in the Iconomy.
Companies in the retail, logistics and services industries that are being forced to adapt to the customer demands imposed on them by their customers, and the pressure of their competitors meeting these demands, are in the category of Iconomy Fulfilment.
Timâ€™s vision for Localz technology is that it can help deliver happiness through fulfilling customer delivery expectations first time. Technology that enables companies to provide their products and services where customers want them and when they want them.
2nd Annual Supply Chain Management Australia 2017 The global economy, sustainability concerns, customer centricity and next-gen technologies are all influencing supply chain and logistics strategies for 2018 and beyond. The Supply Chain Management Australia conference is where SCM leaders from across industries come to share ideas and learn from the best. Itâ€™s where you can access expert analysis, the latest case studies and the information you need to optimise you supply chain in a changing environment. For the first time this year, the conference coincides with the Australian Supply Chain and Logistics Awards! The awards, hosted by the SCLAA will be held at Luna Park after the second day of the conference, so donâ€™t miss the excellent opportunity to attend both events.
SCLAA Newsletter October 2017
INSURANCE & THE LOGISITICS INDUSTRY
INSURANCE & YOUR BUSINESS by Jeremy Bennett & David Woodward
Regardless if you are a Transport Logistics Operator, Trucking company, Freight logistics organisation or someone that engages the above mentioned to run your business, you have vast exposures to loss.
This issue we will be looking at Marine Cargo, also known as Shipping insurance or container cover.
Over the next few months we will be covering the major exposures facing your industry and going over some claims examples to help illustrate the importance of insurance.
Before we jump into Marine Cargo it is a prudent question to ask yourself, regardless the size of your business, “Do I have an insurance broker?” Having an insurance broker acting on your behalf has many benefits.
Within the Logistics industry there are many exposures and policies that you should be considering however, the most prominent/common policies are, in no particular order:
Please click here for a short video detailing the reasons why you should have a broker:
1. 2. 3. 4. 5.
Marine Cargo Public & Products Liability Motor/Truck/Vehicle Insurance Property Insurance (ISR or Business Pack) Management Liability (Inc. Directors & Officers, Employee Crime, Statutory Liability etc.) 6. Cyber 7. Warehousing/Storage Note: this is not an exhaustive list of the policies that you should consider. For a full list contact Jeremy or David.
SCLAA Newsletter October 2017
Do you have an Insurance Broker?
If you already have a broker, we would recommend asking them when was the last time they discussed the needs and exposures of your company with you and explain the marketing exercise they completed for you in detail at the last renewal. If you don’t currently have a broker or are not happy/ confident with your existing broker you should contact Jeremy Bennett or David Woodward.
by Jeremy Bennett & David Woodward The recent declaration of bankruptcy of the Hanjin Shipping Co., by the South Korean courts, with a court order for the remaining assets to be liquidated, is bringing to a close the largest and most significant bankruptcy in the history of the container transport industry. With the shipping line looking financially doomed, many ships were stranded at sea denied access to ports by authorities who were concerned about unpaid fees. Creditors looking for security for Hanjin’s unpaid debts arrested other vessels. Cargoes carried on board were effectively barred from being unloaded at their intended destination. Many of these cargoes were bound for Australian importers. Although the goods themselves weren’t irretrievably lost or damaged, the impact on importers was wide ranging. Apart from the anxiety and uncertainty, many incurred additional freight costs getting the goods re-forwarded on alternative ships or released from arrested vessels. For some the effect was more profound with the delays causing lost sales and lost markets. Many discovered that the consequential financial losses of this event proved to be uninsured. SCLAA Members are very often aware of the more obvious risks that they are exposed to undertaking their Australian operations and they are also familiar with the various types of insurance available to cover these risks. Property and business interruption policies insure the company’s physical assets and future income, cargo insurances cover physical loss or damage to imported and/or exported goods and liability insurances cover legal exposures arising from public or product liabilities. However, many manufacturers, distributors and retailers are reliant on extended international supply chains that are exposed to risks that aren’t always so evident. It is unlikely that they have a full awareness of the range of exposures that exist when their businesses are largely dependent on the shipment of products, materials & equipment from/to overseas suppliers or customers. Similarly, they may not be familiar with the limitations of traditional insurances and the alternative types of insurance available to cover some of these gaps in
coverage. Although most consignments shipped on the Hanjin vessels were eventually delivered with the cargoes intact, the weeks and months following the announcement of the Hanjin insolvency proved to be very stressful, and sometimes very costly, for those affected. Australian importers and exporters encountered a great deal of confusion not knowing how events were likely to unfold, how they could gain access to their goods, and what was, and what wasn’t, going to be covered by their insurers. Frequently, their general insurance brokers were unable to give them the necessary guidance because they had little experience in these complex situations and they had to resort to expensive legal advice. The Hanjin events are one small example of how supply chain disruptions can arise and have a very negative effect on Australian companies that buy from suppliers, or sell to customers, overseas. SCLAA Members have access to specialist supply chain risk management and insurance advice through Jeremy Bennett & David Woodward. They are more than happy to advise and assist Members who are looking to identify and understand how to manage supply chain risks. The SCLAA and Insurance Advisernet have recently come together to provide expert advice for its members. Jeremy Bennett & David Woodward are industry veterans with over 30 years combined experience in the Australian, London and Asian Insurance Markets as both have spent many years living abroad. If would like Jeremy & David to perform a without obligation or cost review your businesses insurance policies, please contact them directly. Please be sure to mention that you are members of the SCLAA for access to their exclusive preferred pricing facilities they hold with all the top Australian insurers.
Contact Jeremy or David for more information.
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Jeremy Bennett– Director - 0403-228-355 – email@example.com (Authorised Rep No: 1251491)
David Woodward– Director - 0404-436-259 firstname.lastname@example.org (Authorised Rep No: 1251606)
Insurance Advisernet Australia AFSL No: 240549 www.insuranceadviser.net SCLAA Newsletter October 2017
Getting Seasonal Workers Up To Speed Quickly Warehouses are predicting a 42% increase in SKUs and 70% increase in volume of items shipped by 2020. And with customers demanding increasingly fast delivery and flawless fulfilment, the pressure is on to deliver. Temporary workers are crucial to ensuring that warehouses can cope – especially around peak times that are becoming ever more extreme. Some larger companies can employ hundreds or thousands of workers at these times.
Voice picking technology can also turn your onscreen instructions into voice-guidance, in virtually any language. When paired together, voice tech and wearable computers help people flow through their shift in a much smoother way with research showing that productivity can rise by as much as 15% and accuracy by 39% . Integrating these technologies also make it much easier to incorporate task interleaving into the workplace, further boosting productivity.
Assimilating these operatives helping them get to work quickly is a challenge. Some of the issues with temporary workers include: a lack of familiarity with workflows; difficulty in using picking technology and time lost to dealing with exceptions. The Warehouse 2020 Vision research found that it takes an average of 53.6 hours to get workers fully productive – meaning it typically takes two weeks before workers are up to speed and able to achieve the right level of performance and accuracy . This is too long at the best of times, but the issue is accentuated over holiday periods.
4. Ensure supervisors can communicate with staff easily and quickly – and vice versa: Too often workers can’t communicate with each other, supervisors or managers in real-time across the warehouse floor due to a lack of integrated communication systems. Without access to mobile voice and data communication tools, managers are forced to spend a large part of their day tethered to their desk or office instead of out on the floor, supervising employees and spotting productivity issues. It also leaves seasonal warehouse workers particularly vulnerable when exception-based scenarios happen, such as empty stock locations or spillages. By leaving the warehouse floor to go wandering off in search of a supervisor, critical order fulfilment time is lost, resulting in a backlog of orders, delayed shipments and missed KPIs. By utilising devices that have both voice and data capabilities and are built to endure the harsh environment of the warehouse, managers can remain on the warehouse floor to protect productivity and throughput and still access all business systems and workers with the push of a button. Employees can communicate with their own portable, handheld or wearable mobile devices, eliminating time lost walking to and from telephone stations on the floor or being distracted by a loud and unintelligible overhead tannoy.
There are four key areas which need to be addressed. 1. Augment training: There’s no getting away from it, you’ll need to direct core staff away from their tasks to train new people. But you can augment this training – and reduce the time needed to deliver it – by using video. Videos can talk through how key apps work, the mobile devices that teams will be using, and include 3D plans and maps of your site to help build operators’ awareness of your space – even before they hit the floor. The videos can even be watched from the same mobile devices they use in the warehouse. 2. Use intuitive devices: Today’s workers, especially millennials, expect their work technology to be as every bit as functional as their home devices. Given that younger employees tend to be especially nimble users of technology, you can expect a significant reduction in training time when moving to intuitive devices. Android-based devices are particularly flexible for a variety of workplace applications, and readily upgradeable, to ensure a longer device lifespan. 3. Help your teams work in more natural ways: Handheld scanners have long been the order of the day – but wearable computers and ring scanners are increasingly gaining popularity. These devices allow your teams to keep their hands free at all times. For some roles – especially high-intensity picking – the technology feels to the user as if it’s seamlessly augmenting their movements to boost productivity. 24
SCLAA Newsletter October 2017
To find out more on how to enhance productivity in your warehouse download your copy of the Warehouse 2020 Report.
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SCLAA Newsletter October 2017
Victoria / Tasmania
Daniel Esdaile - VIC/TAS President 2017 Draws to a Close with a Bang!
technologies and progressing their professional development.
As 2017 rapidly draws to a close, we reflect on what has been a rewarding year of growth in the SCLAA Vic/Tas committee, professional base and initiatives.
This year saw the introduction of the Thought Leadership Series, and successful completion of thought provoking events on the challenges of last mile, and the opportunities of a future with driver less logistics. We eagerly look forward to the November 1st event “Blockchain in Supply Chain” delivered by those on the cutting edge, Blockfreight, Ramco and IBM.
SCLAA has recognised the sweeping changes occurring across our industry. The demands of the transport and logistics industry have fundamentally changed. Many of the core competencies of the industry remain the same, however digital technologies and an aging workforce are continuing to change both the skills and the supply of labour in the transport and logistics sector. Today’s ideal employee must understand core leadership qualities and have a number of specific qualities in order to tackle the industry’s emerging challenges: the new workforce must know how to unload a truck, raise a purchase order, or liaise with data scientists to analyse big data sets to optimise transport networks. We launched 2017 with the above in mind and the key ambition of arming our member base with the latest information on industry changing
2017 kicked-off of the SCLAA Vic Mentoring Program, where students teamed up with experienced supply chain and logistics professionals to gauge insights into the profession and career development. This year’s program draws to a close on 8 December at the Annual Christmas Party, to be held at The Crafty Squire, we hope to see you there and catch up with our mentees and mentors! To wrap up the year we will be finishing strong with the launch of SCLAA’s first Industry Collaboration Program at the Christmas Party. The program will draw both experienced professionals and students alike to tackle a key industry challenge in a ‘hackathon’
Executive Oracle Lunch. SCLAA & Oracle held an Executive Round Table lunch in October on peer-to-peer networking. It was a great opportunity to hear from a global supply chain expert and explore case studies on how organisations are streamlining their supply chain processes to better serve customers.
SCLAA Newsletter October 2017
style innovation event. With events in Blockchain, Industry Collaboration, and a combined member and mentor program Christmas Party still ahead, we look forward to celebrating what has been a successful and engaging year for SCLAA. A huge thank you to everyone from the SCLAA Vic Committee, for their hard work and leadership in setting up 2017’s key programs. A particular thank you to Federik Nasol and James Crafter whom were instrumental in setting up the mentoring program, Jesse Wilson and Maddison Timperio for driving the Thought Leadership Series and Dillon Singh for leading exciting industry events. Finally, a special thank you to our partners; without your support the SCLAA’s achievements wouldn’t be possible! If you have any ideas for events, or would like to participate in our fun and talented committee, please contact us on firstname.lastname@example.org or personally on LinkedIn. Daniel Esdaile, Victoria President Charles Edwards, Victoria FLG President
What's Next? / In Reflection WHAT'S NEXT? Thank you to everyone whom has contributed to our growing community so far in 2017! All the great things the SCLAA has achieved have been driven by our super talented and dedicated volunteer team –We set some really big targets which I am super proud of what we have achieved:
party on 8 Dec 2017. An invitation will be sent out next week to all current mentors and mentees, so be sure to mark your calendars!
Thought Leadership Event. Blockchain in Supply Chain. The team is excited to announce details of our next event on the highly topical Blockchain technology. "How will innovation in blockchain technology shape supply chains of the future" will be held on Wednesday 1st November at popular coworking hub Deskworks, located in St Kilda. We will have experts from IBM, Ramco and Blockfreight speaking at what promises to be a highly engaging and informative evening. For more detail and to sign up, check out the event page.
Annual Christmas Party. To celebrate a great year, the SCLAA will be hosting its annual Christmas Party at the Crafty Squire Brewery on 127 Russell Street, Melbourne CBD. The event will be held on Friday 8th December 2017 at 6pm – late. The Christmas party will also see the launch of the Industry Collaboration Program (see below). We look forward to celebrating 2017 with you, the SCLAA committee, and our mentees and mentors over a drink and nibble on the Crafty Squire’s terrace!
Industry Collaboration Program. The SCLAA has begun work with RMIT University to put in place a program which combines industry professionals and aspiring students with real world industry problems. The Industry Challenge is looking to leverage the power of combining a diversified range of people’s skills and backgrounds towards the resolution of a front-line business problem. This is an exciting initiative which will help nurture new entrances to the Logistics and Supply Chain space, while also providing engaging insights for industry and its professionals. We look forward to sharing the results!
2017 Mentoring Program Close. To celebrate the completion of the 2017 SCLAA mentoring program and to extend our thanks to all participants, we'll be hosting a networking drinks prior to the Christmas
2018 Mentoring Program Launch! We set up the first mentoring program in 2017 to achieve two ends 1) Grow capability 2) Increase demand for talent in our industry. Our program helps ensure that our future leaders understand how to collaborate with everyone across the supply chain and have the ability to drive our industry forward. 2017 showed the benefit and potential here and has provided a platform to launch the 2018 Mentoring Program. Based on positive feedback and strong demand, the 2018 Mentoring Program will engage up to 20 young professionals in the industry, across a number of key activities. Keep your eyes peeled for information in the coming weeks on the 2018 program and please get in touch if you are keen to be involved with the program as a partner, participant or volunteer.
iN REFLECTION VTA Mentoring Awards Night The SCLAA was recently nominated for the VTA Investment for our inaugural Mentoring Program. The program, which seeks to develop professionals in the early career stages of their career in the logistics and supply chain industry, was strongly aligned to the objectives for the VTA in our efforts to create a framework to encourage collaborative innovation and development of our future leaders.It was an amazing event at Crown Palladium - we look forward to heading back, and winning next year! SCLAA Newsletter October 2017
September Networking Event Thank you to our guests who attended our third FLG Young Professionals Networking Drinks for 2017. As you may have experienced, The Duke of Wellington was a great, cozy environment to grow our networks and meet our wider community. We’d especially like to thank Vertical Talent for their sponsorship and presence at the event. It was great to see the community expand and intertwine and see smiles on everyone's face. See you next time!
Mentoring Program – Selection Partners Career Event. The 2017 Mentoring Program has progressing well, with each of the pairs having established great relationships and providing very positive feedback. September saw Selection Partners’ Danny Busija facilitated a career session with the Mentees at PWC’s Melbourne office. Danny took our mentees through real world examples of taking your first step, and next steps into the world of work.
FOCUS ON VIC/TAS COMMITTEE MEMBER Kristian Ostrowski | Transit Key, Sheriff | Committee Member What is your current occupation? Not working right now, just started looking again for a BA role - have been focusing on studies this semester after going back to university full time, studying Logistics and Supply Chain, in 2016 and contracting along the way.
Why did you join SCLAA? I wanted to get involved with an organization such as the SCLAA because I genuinely think Logistics and Supply chain are awesome, and more people should know it. Anything I can do which, in some way tells people that, this is I want to be part of. I also think its very important to be part of, and push forward, the collaborative and shared investment in industry problem solving. Thats how we are going to propel Australia's supply chain capabilities into the future, by sharing what we know, and growing that knowledge today.
Why did you choose supply chain? Almost every business and organization has an element of supply chain to their operations, its something that sits in the background. I find that fascinating, how huge the impacts are of the networks and systems which make the world go round. My interest in supply chain is a combination of seeing how things get done in a practical sense - like loading a truck with a forklift. All the way up through to the information systems which manage orders. This intersection of procedure and data, all tasked to help make operations more efficient and scalable, its something I want to continue to be part of and try push forward into new phases.
What is the proudest moment of your career? Developing a bespoke site management system for a previous employer, I was given a problem and free reign to develop a solution from scratch. It was a very difficult task, very stressful, but abundantly rewarding to see something you came up with in your head be used by people - seeing how their workday has improved as a result of something you came up with. Then working as a team with those same people to improve on your own designs. That process is what I find most rewarding, as well as knowing that the system is still in place and operating today, thats my proudest moment. Obviously I didn't do it alone! I had incredible support from a number of people.
What are your career aspirations? I would love to leave a mark on Supply Chain, hopefully a positive one!. We are extremely luck right now in the sense that there's an air of excitement as to what is possible - how can logistics and technology be combined? what is the most effective way to address scalable issues? how far can we progress as an industry? can I one day go to a party, say I work in logistics, and have people respond with something other then "whats that"?. Ideally I would like to be the one to try, and do my best, to answer these types of questions. Whether thats as a BA, a product owner or something along those lines. Having said that, even if I don't get to drive the industry's "bus" (probably should say truck right..), it'll be just as much of an adventure to watch what happens next.
To celebrate a great year, the SCLAA wishes to invite you to our annual:
CHRISTMAS PARTY Our Event Sponsors
New Program Launch: Industry Collaboration
Drinks & Canapes
When: Friday, 8 December 2017 Where: The Crafty Squire, Lager Lounge 127 Russel Street, Melbourne CBD Cost: Student $15 Member $30 Non-Member $40 Time: 6pm â€“ 10:30pm email@example.com
1300 364 160
Tim Charlton - NSW President
The committee is making tremendous progress to rebuild SCLAA events and engagement in NSW. Throughout this edition you will see some recent events, what’s coming up and an interview style questionnaire to get to know a couple of the committee members. I’m appreciative of the time and effort the volunteer committee of 12 are putting in to offer new and exciting opportunities to logistics and supply chain professionals in NSW. We look forward to welcoming others in the industry who would like to be part of this opportunity to network, learn and gain access to exclusive opportunities across NSW. Don’t hesitate to reach out via email or through LinkedIn.
What’s been happening? An update from Adam Dwyer (VP of Marketing) and Carla Seyfferdt (VP of Stakeholder Engagement). As part of administering value in NSW through site tours, our two recent tour offerings were well received by attendees, who were both members of the SCLAA and non-members. Special thanks to our hosts who were open to answering questions and sharing insights. Sony Tour:
The August tour of the Sony DADC distribution centre provided insight into the massive conveyor system, automated forklift bulk storage bay areas and pick to light systems. ony DADC provides 3PL services for interactive entertainment (video games) and movie publishers in Australia. 65 million units are shipped from the DC annually, 27,000 SKU's are managed and approximately 5000 PO's are processed per day, (3k during low trading and 10k during peak). “I like seeing how different organisations operate and the technology they incorporate within their business.” “Fulfilment is handled by every company differently, this was another real-world example.”
Botany Tour: Our tour in September with NSW Ports (who presented amongst other things, key information around
volumes and constraints current and forecasted) also arranged a tour of Hutchison Ports for attendees. The tour generated significant interest and provided attendees with perspective and insights that are otherwise not available for those not working in the industry. NSW Ports consists of 3 container terminals operated by independent stevedores. There are 12 container vessel berths and 2 bulk liquid berths. Infrastructure to and from the port includes road and rail access to all three container terminals and pipeline links to the bulk liquid and gas berths. The port operates 24 hours per day, seven days a week (24/7). “Well organised and really interested. Really great exercise for us.” “Everyone was great and friendly and made to feel welcome. The Hutchinson tour was the highlight” 30
SCLAA Newsletter October 2017
SCLAA NSW team is committed to providing interesting and informative tours throughout the year. Keep an eye out for more fantastic upcoming tours in the following months!
What’s coming up? An update from Emory White (VP of Events) •
StarTrack National Control Centre Site Tour - We look forward to seeing you at StarTrack on Friday 10 November 2017. For more information and to book, click here.
Second Port Botany Tour – Due to overwhelming demand we are inviting members and non-members to register their interest in attending a second tour by emailing your contact information to firstname.lastname@example.org.
If you have any ideas for events, or would like to participate in our growing and talented committee, please contact me on email@example.com.
SCLAA Newsletter October 2017
Meet your new NSW committee members Primo Danieletto
How long have you been in the logistics and supply chain industry? I have been
How long have you been in the logistics and supply chain industry? I've been
working in the sector for close to 10 years in a multitude of industries spanning mining to retail. In this time there has been extensive change and innovation.. Supply chain is coming to the forefront in business as firms are taking are a more serious approach to the value of a robust supply chain.
What is your 'day job'? I'm the GM for a leading online
wholesaler of general merchandise. I am moving to into a larger organisation at the end of this month with a more technical focus surrounding supply chain planning for a global top tier cosmetics manufacturer and distributor.
What’s your role in the NSW committee and what are you working on for members? I lead
the stakeholder engagement committtee with a focus on sponsors and partnerships. We aim to align our core values of thought leadership and education of supply chain issues and opportunities with partners that are synonymous with our mission. SCLAA is currently doing this by leveraging and creating mutually beneficial relationships between our members and partners. Essentially, stakeholder engagement encapsulates the management of partners in a multitude of industries to engender a network of top tier companies with our members to stimulate supply chain progression and innovation, whilst allowing our members to access aspirational, best practice organisations and processes to develop their skills and knowledge. I am currently working with the rest of our committee to improve the member experience and provide a sound value proposition for prospective and current partners.
What's something of interest to you in the logistics and supply chain space? I am extremely
interested in block chain technologies and how this is going to create more competitive, transparent and ethical supply chains in the future. It’s a contentious innovation as it is focused around corporate social responsibility and intellectual property. This does come with trade-offs as a lot of major manufacturers and distributors do not want to disclose suppliers or their source of competitive advantage. Although, the macro effects could be systemic in lifting the manufacturing working conditions in low cost countries. I do not know how this will affect the end consumer in regards to price, but it is very exciting nonetheless.
SCLAA Newsletter October 2017
consulting to the industry for about 4 years. My experience and focus is on the physical demonstration of efficiencies through innovative new technologies and methods of operating. Architects traditionally aren’t involved in supply chain thinking outside of a ‘box with four walls’, yet we are engaged to provide property solutions that are integral to the logistics process. My challenge has been to tip this theory on its head and bring a deeper understanding of the macro supply chain issues (efficiency and cost, time to market, environmental, social and, macro-economic to highlight a few…) into the way we approach every day assignments.
What is your 'day job'? I'm currently an Associate at
Reid Campbell, an Australian Architectural practice which is a leader in the Industry and the Infrastructure sector (comprising logistics and transport, distribution and supply chain design and thinking). My job involves designing and delivering projects such as ports, Every day presents a range of new challenges and opportunities to learn and innovate.
What’s your role in the NSW committee and what are you working on for members? As part of
my professional development over the last couple of years I have sought to engage with a number of different industry bodies with the aim of pollinating professional networks through events planning and organisation. I hope that I can use these experiences to assist the members of the SCLAA and endeavour to broaden its reach to a larger audience. Ultimately, I hope I can provide some specific property and facilities related knowledge that can be of benefit to the members and the organisation.
What's something of interest to you in the logistics and supply chain space? I am particularly
fascinated with the ongoing developments being made in the fields of automation, autonomous vehicles, green technologies and the effects on broader freight transport planning. Advances in these areas and the interplay with long standing and conventional modes of transport (e.g. sea, road, rail) will constantly challenge the dynamics and competitiveness of the market. Automated technologies coupled with the traditional logistics sector integrating with ‘the internet of things retailing’, will require all players in the industry to be open-minded and forward thinking in order to remain relevant and competitive.
Division Report Brian Lynn - WA President
The SCLAA had an extremely busy October. The week of 16th was particularly hectic with no less than three separate events being staged. On Monday 16th Michael Page generously hosted Lewis Trigger, an international speaker on Continuous Improvement who is no stranger to Perth having consulted in many of the states key industry sectors. The presentation focuses on how to identify and leverage constraints and drew upon Lewis's experiences when training as an Israeli Army officer. The event was promoted jointly with ASCI, with the significant turnout reflecting the benefit that selective collaboration in staging events is yielding. On Wednesday 18th, in a first for WA, Aldi's West Australian Logistics Director, Tarkan Erturk accompanied by Yury Sukhov, Logistics Manager and SCLAA FLG President for WA, gave a fascinating presentation to Curtin University Supply Chain and Logistics students, lecturers and other assembled guests on Aldi's entry into the WA market. Topics covered included handling issues caused by WA's remoteness, the environmental credentials of the Jandakot DC (five stars) and the changing economic environment in the state. Particularly useful both for students and mature members of the audience was Tarkan's advice, based on personal experience of how to develop a successful career in the industry. All present enjoyed the fruits of collaboration between a leading industry player, the association and one of its national partners. Last (but not least) on Friday 20th was the annual Peter Smith memorial golf day. More than sixty logisticians assembled bright and early on a beautiful WA spring day at the Vines for another fun filled day of friendly competition and networking, once again splendidy organised by the venue and SCLAA WA's resident golfing guru, Dan Di Stasio. Amid all the fun and festivities, $2000 was raised for Canteen, another fabulous effort by all present, particularly the event’s gold sponsors, Toyota Autoparts, Savills Australia and Cristal Pigment Australia Ltd, and the hole in one sponsor The Naked Apple Cider. Almost as important was the roll call of prize winners, namely: • 1st Savills – James Condon, Murray Simcock, Richard Pickerill, Shane Gruber • 2nd Perth Golf Network – Adam Graham, Paul Sinden, Rob Clark, Laurence Kelly • 3rd Toyota Autoparts – Gary Nettle, Jeff Sadowski, Graham Morris, Grag Campbell • NAGA, Chep – Craig Maggs, Maurice Carruthers, Mark Culverwell, David Hodgson • Straightest Drive – Matt Atkins • Longest Drive – Mike Hales • Nearest the pin – Mike Rowles The year's not finished yet; there are more events in the pipeline and plenty of opportunities for those who'd like to get more involved in the running of the association to do so. Committee meetings are held on the first Wednesday of each month. Watch the normal communication channels for more information.
A Group Shot of all 76 players!
Ryan Lanzon (Michael Page) introducing the event.
Tarkan Erturk (Aldi) presenting
Brian Lynn (President SCLAA WA) introducing Lewis Trigger
L-R: Stanley Fan (SCLAA), Tarkan Erturk (Aldi), Thorsten Reiners (Curtin), Yury Sukhov (Aldi and SCLAA), Brian Lynn (SCLAA), Robert Warner-Stanton (SCLAA)
The winning team Savills Australia - James Condon, Murray Simcock, Richard Pickerill, Shane Gruber. Trophies presented by Corrine Smith
Workplace Safety an accident waiting to happen
Workplace safety an accident waiting to happen. Research released earlier this month has revealed that a staggering 81 per cent of Australian small businesses don’t fully understand their workplace safety obligations. The Employsure Workplace Safety Index, conducted by the largest workplace relations firm in Australia, also found that only half are confident that they meet their obligations across all areas of workplace safety. The Index further revealed that small business finds it too complex and time consuming to keep up with the changes and paper work required. During Safe Work Month this October, it’s a prime time to address safety across Australian workplaces. The Employsure Workplace Safety Index highlights the top five safety issues facing small business as the complexity of the rules, constant changing of the rules, amount of paperwork, time required for compliance and staff being careless. Employsure’s Managing Director Ed Mallet said “small business owners want to do the right thing but we hear from them daily that they feel crippled by the complexity of what they are required to do. They are swamped and struggling to keep their head above water.” Only one in five small businesses feel confident to implement their workplace safety plan, while only 46 per cent have a clear understanding of how to manage and address bullying. Also concerning is that less than 60 per cent know their responsibilities should an employee get injured. According to Ed, “our research found that small businesses want to improve their workplace safety, particularly around improved documentation, managing bullying, training staff and responding to an injury. They want to do more, but often don’t know how.” Small business employers don’t know where to go to find help with over one third admitting they rely on Google for the answers. “With about five million Australians employed by small businesses, it’s so important that we get safety right and minimise the complexities and drain that compliance creates to keep workplaces safe. This isn’t just a workplace issue, this is a national issue.” The Employsure Workplace Safety Index was conducted in August 2017 by Galaxy Research to track Australian small business’ understanding and confidence in planning, managing and implementing their workplace health and safety obligations.
Employsure is Australia’s leading workplace relations specialist providing employment and workplace health and safety services for 14,000 small and medium sized businesses across Australia. Media inquiries Melissa Fanous, Employsure Communications 0412 033 103 Email: firstname.lastname@example.org Nicole Chehine, Employsure Communications 0412 179 063 Email: email@example.com
Actnow, now, before before the Act thefestive festive season season shut down. shut down. 3 October 2017.
Businesses planning to shut down across the festive season, need to confirm close dates and notify staff in accordance with Award requirements from now. Many Awards and Agreements allow you to direct staff to take annual leave, or unpaid leave when annual leave has been exhausted, during shut down period. mustdates be provided with Businesses planning to shut down across theafestive season, need Employees to confirm close and notify staff in specific notice different Awards. from Somenow. Awards require up to three months’ notice of a shut down. accordance withfor Award requirements
Many Awards and Agreements to direct to take annual leave, or unpaid leave when Employsure’s Head of Adviceallow Joshyou Vikis says: staff “it’s important that employers comply with the annual notice leave has periods set out in the Award Agreement. The notice canbe beprovided providedwith verbally however, wedifferent Awards. been exhausted, during a shut or down period. Employees must specific notice for recommend is inup writing either via email orofhard copy.” Some Awards this require to three months’ notice a shut down. Employsure’s Head ofinAdvice Joshare Vikis says:avoided “it’s important thatpolicies employers with the noticewith periods set out “In practice, issues this area easily with clear andcomply procedures together early in the Award or Agreement. The notice be provided verbally however, we recommend this is in writing either via communication to staff” according to can Josh. email or hard copy.” Employers must give the required notice to employees about an upcoming shut down usually between “In practice, issues thisweeks. area are easily avoided with clear policies and procedures together with early three months and in four communication to staff” according to Josh. Here are a several examples of the minimum notice period requirements for different industry Awards: Employers must give the required notice to employees about an upcoming shut down usually between three months Three and fourmonths’ weeks. notice. Here areMeat a several examples the minimum notice period requirements for different industry Awards: ¥ Industry Awardof2010 Three months’ notice. ¥ Textile, Clothing, Footwear and Associated Industries Award 2010 • Meat Industry Award 2010 • Two Textile, Clothing, Footwear and Associated Industries Award 2010 months’ notice. Two months’ notice. ¥ Building and Construction General On-Site Award • Building and Construction General On-Site Award • ¥ Joinery and Building TradesTrades Award Award 2010 2010 Joinery and Building • Plumbing and Fire Sprinklers Award 2010 • ¥ Electrical, Electronic andSprinklers Communications Award 2010 Plumbing and Fire Award Contracting 2010
Four weeks’ notice. ¥ Electrical, Electronic and Communications Contracting Award 2010 • Clerks—Private Sector Award 2010 • Hair and Beauty Industry Award 2010 weeks’ notice. • Four General Retail Industry Award 2010 • ¥ Restaurant Industry Clerks—PrivateAward Sector2010 Award 2010 The Award or Enterprise Agreement may specify the situations in which an employer can require leave to be ¥ Hair and Beauty Industry Awardsay 2010 taken. For example, it might specifically that an employer can require employees to take annual leave during a Christmas shut down. Alternatively, it might be more general, and say that annual leave is to be taken subject to the reasonable needsRetail of theIndustry employer’s business. ¥ General Award 2010 “Make sure you follow any rules under the Award or Agreement about notifying staff and what should happen during ¥ shutRestaurant 2010 doesn’t say anything about shut downs or directions to take leave, you the down. If theIndustry Award orAward Agreement can’t force employees to use their leave. Instead, you can negotiate with them to take paid or unpaid leave but if they The Award or Enterprise may specify the situations in which an employer can require leave don’t agree, you can’t forceAgreement them.” to be taken. For example, it might specifically say that an employer can require employees to take Josh says the end of year festive season can be two sided: “most employees want the festive season off from work annual leave duringHowever, a Christmas shut down. Alternatively, it might more general, thatbased annual to rest and recharge. some employers have the reverse intentbe- especially thoseand in a say service industry leave is to be taken subject to the reasonable needs of the employer’s business. that wish to operate across a key period and meet increased customer demand.” If you plan to shut down over the festive season, check the interactive full list of Awards and how much notice is “Make sure you follow any rules under the Award or Agreement about notifying staff and what should required here. happen during the shut down. If the Award or Agreement doesn’t say anything about shut downs or Josh Vikis is the Head of Advice at Australia’s leading workplace specialists Employsure. Josh has a wide range of employment relations experience. Prior to joining Employsure, he was a union representative and majored in Human Resources and Employment Relations at the University of Newcastle. Employsure Pty Ltd, Act now, before the festive season shut down. Find us online www.employsure.com.au or call us on 1300 651 415
Division Report Mark Healing - Qld President
The Qld Committee met to discuss the future of the reformed Committee and how we would look at progressing in the near future. From this discussion the Queensland Committee Executive were elected as follows: •
State President – Mark Healing
Vice President – George Hodgson
Treasurer – To be confirmed
Secretary/membership – Ken Newton
Board Representative – To be confirmed
Event co-ordination – Matt Guthrie
Marketing & Communication – Stephen Johnson
Committee Member – Lynette Gray
The next event after the Oracle Lunch will be the SCLAA Christmas Hamper packing day on the 01 st of December – the planning of which is well underway. Still early days, but the enthusiasm and drive are evident.
Employsure are the leading workplace relations specialists in Australia, bringing together human resources and access to compliance advice to help SCLAA establish fair and safe work conditions. Employsure has practical experience in serving and providing solutions for the Transport and Logistics industry.
MEET YOUR OBLIGATIONS
Employsure have partnered with SCLAA to support members with managing employees and keeping your workplace safe.
SCLAA Newsletter October 2017
ANYTIME, DAY OR NIGHT
REPRESENTATION CLAIMS SUPPORT
SCLAA members will receive free advice on anything from interpreting awards to Fair Work legislation. For complete peace of mind, talk to the SCLAA Employsure Specialist today on 1300 832 795.
Annual SCLAA Xmas Hamper packing event attended by members and associates to pack 800 hampers of donated and or purchased items. 1000 Reasons why you need to help in 2017 The Australian Institute of Packaging (AIP), the Australian Packaging & Processing Machinery Association (APPMA), the Supply Chain & Logistics Association of Australia (SCLAA) and the QLD Supply Chain and Logistics Conference (QSCLC) spent their Christmas Party for the sixth year with a twist. In 2016 the Members packed over 1100 hampers for Foodbank to provide to those in need during the holiday season. The hampers included 800 family hampers, 200 ladies packs and 110 childrenâ€™s packs. The total valuing over $120,000 worth of items that were either donated, or the funds raised for, by the industry. Over the last six years, the team has packed 5400 hampers to the value of close to $660,000 for people in need and looks forward to even more hampers in 2017.
Friday the 1st of December 2017
Eagle Farm Race Track Function area 230 Lancaster Road Ascot 4007
10.00am - 3:00pm
Members: $25.00 Affiliates: $25.00 Non-Members $30.00 Under 18 Free to Attend
PROUDLY ORGANISED BY
This will include lunch and two drinks vouchers. A cash bar will be opeating for those who wish to purchase further drinks. Please wear closed in shoes and comfortable clothing
HELP US TO MAKE CHRISTMAS A BRIGHTER TIME FOR THOSE IN NEED. REGISTER ONLINE
SCLAA Newsletter October 2017
SCLAA October 2017 Newsletter