SCLAA October November 2016

October November 2016

SCLAA NEWSLETTER October-November 2016 p: 1300 364 160

e: secretary@sclaa.com.au

w: sclaa.com.au

In this edition: Finalists announced for Australian Supply Chain and Logistics Awards 2016, Queensland Supply Chain Award Winners, Driverless Cars, Divisional Round Up ...

56TH ANNUAL AUSTRALIAN SUPPLY CHAIN & LOGISTICS AWARDS SAVE THE DATE! WEDNESDAY 23 NOVEMBER 2016

BOOK NOW!

Your association The

Supply

Association

Chain of

is

Australia’s

for

Supply

and

Logistics

Australia

(SCLAA)

largest Chain

professionals

and

association

and

Logistics

practitioners.

We have over 8,400 members and industry contacts. Our proven history, governance framework, established representation, value for money and strategic reach to make us the right choice for you.

Join the SCLAA For more information on how to join the SCLAA go to www.sclaa.com.au or follow us:

Mark Skipper

Chairman’s report The 56th Australian Supply Chain & Logistics Awards will be held at the Grand Ballroom at Luna Park in Sydney in a few weeks.

The Awards night is Wednesday November 23 and the Ballroom will have the stunning back drop of the Sydney Harbour Bridge and City behind the presentation stage. With daylight saving at that time of the year, the setting sun will be an excellent backdrop to the pre Awards drinks.

Our Awards are the longest running in the Industry and we look forward to seeing you there. The only way to thrive in this industry is to network and network, so attending events like this is important to your career success.

In difficult and challenging economic times, the SCLAA continues to use the talents of the whole Association considering diversity in its ranks more important than ever. Fostering an inclusive diverse working environment with female representation with Division / State Presidents, Division Committees and one Board member has brought business benefits and provided a market advantage in economically challenging times.

Even though there is a long way to go, the SCLAA has taken a fresh look at how this understanding of diversity will continue to increase and ensure positive impacts for its members and partners. Respecting diversity and being inclusive has given the SCLAA a greater pool of talent and competitive and collaborative advantages. Encouraging this avenue clearly shows economic impact underpinning the benefits of equality, diversity and inclusion. This is something that no doubt will be continually pursued into 2017 and beyond.

Although steady progress was being made, a recent slide has seen the number of women on boards drop from 41.7 per cent in 2013 to 39.7 per cent in 2014, according to the Government's own Gender Balance on Australian Government Boards Report.

The decrease is particularly disappointing because progress on public sector boards has long been held up as a benchmark for better gender balance - and it's a reminder that change cannot be taken for granted.

A new Australian study has found reporting regimes and targets need to come with accountability and some form of enforcement to boost the number of women making it to the top.

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SCLAA Newsletter October 2016

Mark Skipper is Chairman of the SCLAA. With over 37 years of experience as Executive and Non Executive Company Directors Mark has supply chain and logistics experience in both consumer and customer facing industries. mark.skipper@sclaa.com.au

According to Professor Bob Wood, significant change to the low level of women in leadership, such as on boards and in parliament, needs targets with accountability. Last week, Professor Wood released a major international study on targets and quotas with colleagues from the Centre for Ethical Leadership at Melbourne University. Reporting regimes on their own are necessary but not sufficient, and might not be effective enough to increase female representation in boards of directors of public companies, the study found.

There was no evidence that a requirement to report on gender diversity and the publication of resulting statistics for companies and parliamentary bodies has any impact on the election of women to company directorships or seats in parliament, whereas targets and quotas with transparency and accountability do make a difference, the research says.

The study looked at global efforts to address gender balance, and found that setting higher goals for female representation and using stronger enforcement mechanisms, both in boards of directors and in government bodies, leads to higher representation.

While many in the business sector are still squeamish about stronger enforcement measures, much less a legislated quota for women, it has been a struggle to increase women directors to anywhere near the 39 per cent currently on government boards.

The latest data from the Australian Institute of Company Directors shows women make up 20 per cent of directors on ASX200 boards, and that's a distinct improvement from the 8 per cent in 2009.

Women made up 26 per cent of new appointments to listed boards in the first five months of this year. In 2011 the total amount of women appointed as directors was 28 per cent, which dropped to 22 per cent in 2013, and rose to 30 per cent last year.

So far, measures in the business sector to address the lack of women have hinged on voluntary compliance with regimes, such as the ASX diversity reporting requirements, and a range of organisations have introduced targets for women in management.

Earlier this year the Australian Institute of Company Directors also announced a target of 30 per cent women directors by 2018.

Perhaps an extra lever to boost women directors would be to appoint more women as chairs, with recent analysis showing companies with women chairs have more diverse groups of directors.

Women chair just 4.8 per cent - or 24 companies - in the ASX500, according to gender researcher and Australian Community Advocate, Conrad Liveris, who used ASX data to track the gender of chairs and directors. Instead of complying with the clichĂŠ that women pull the ladder up after them, companies with women chairs have more female directors than those with men at the helm, he said.

This will be my last month as Chairman of the SCLAA, as I retire as per our Constitution. Having been on the SCLAA Board for six years, it is time to hand over.

A lot has happened in the last six years, we are now the only genuine Supply Chain and Logistics Industry Association covering transport and warehousing in Australia. Being a

genuine not for profit, with Committees in every State / Territory, we are able to deliver the best possible support for our Members and Partners.

Some of our achievements in recent years including winning and completing on time and under budget the $800,000 Federal Government Energy Efficiency Grant Project, the launch of our new website and membership management system, the appointment of our Executive Officer Anthony Trainor, reaching 27 National Partners, the highest it has ever been and being financially secure we implement strategies to grow and expand.

Like all Industry Associations, we need to continue to be relevant to members, grow and being sustainable and this has been the focus of the Board. I would like to thank all our hard working Divisional Committees, Presidents, Future Leaders, National Board Members and Office Logistics for all their sustained and ongoing support. We are all volunteers at the SCLAA and we would appreciate an injection of fresh ideas across the country, so please put your hand up to join your local State Division’s Committee. Great for your career exposure as well.

Thank you for all your support, Merry Christmas, Happy New Year and good luck in your endeavours.

Mark Skipper Chairman SCLAA

SCLAA Newsletter October 2016

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A new name for IBS - say Hello to Iptor Iptor Supply Chain Systems builds on industry and cloud services expertise to help businesses manage the 10% of orders that drive added value in distribution Solna, Sweden – September 12, 2016 – International Business Systems (IBS), a leader in supply chain management, planning and logistics software and services, today announces its global re-brand as Iptor Supply Chain Systems. The new name reflects the company’s strategic mission to help distribution-focused organisations solve their most complex order management and fulfillment challenges in a world where exceptions are the rule.

The organisation’s forward-thinking approach is built on its expertise in cloud based systems and solutions that help its customers handle the full range of customer orders and fulfillment requirements. Recent research undertaken by Iptor Supply Chain Systems points to a fundamental truth: for many distribution businesses, about 90% of processes and orders are routine. The other 10%—the exceptions, the one-offs, the special requirements—can wreak havoc on the business if not managed properly.

Iptor Supply Chain Systems calls this the ‘90/10 rule’ and it highlights the importance of being able to rule the exception in a distribution market that is ever-changing, increasingly complex, and highly competitive.

Jayne Archbold, CEO, Iptor Supply Chain Systems, comments, “This is more than just a re-brand – our name signals a fresh, refined approach to how we focus our experience and expertise to better serve our existing and future customers.”

She continues, “The idea of ruling the exception was born out of customer research. Over 1,250 distribution businesses use our products and services to manage their operations. They operate in many sectors and in 40 countries yet they consistently tell us that a key challenge is handling the 10% of non-standard orders and added-value services that differentiate their offering. Without good systems support, these exceptions can disrupt established work-flows and eat into operating margins.

We partner with customers to help them not just manage, but rule the exceptions. We help them reduce complexity, improve efficiency and accuracy and we give them real time visibility across all their operations.”

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Boasting past expertise and industry knowledge, Iptor Supply Chain Systems has grown into a specialist supplier of ultrareliable ERP and WMS solutions to the distribution and publishing sectors worldwide. Its software applications are backed by a global customer service team and can be delivered on-premise or as a managed cloud service.

Archbold adds, “Today, over 17% of our customers use our cloud services. And our expertise in cloud and managed services means that we can help customers integrate with their partners, upstream and downstream, and adapt quickly to new opportunities. It means that our customers can focus on their core business, and those exceptions, while we take care of infrastructure and connectivity. We are a full-service partner, dedicated to helping customers solve their most complex order management and fulfillment challenges.”

About Iptor Supply Chain Systems Iptor Supply Chain Systems is a global leader in supply chain management, planning and logistics software and services. The company helps distribution-focused organisations solve their most complex order management and fulfillment challenges within fast-moving, multi-channel and global supply chains.

Serving 1,250 customers with 4,000 installations in more than 40 countries, Iptor Supply Chain Systems provides fully integrated enterprise solutions, with highly adaptable and robust software backed by world-class support from supply chain experts. Available on-premise or as a fully managed cloud service, Iptor Supply Chain Systems offers compelling value to customers across distribution, 3PL and publishing sectors.

For more information, visit: www.iptor.com.

Ruling the exception - how Distribution Organisations can gain an edge in today's supply chain

Market growth always comes at a price, but the exponential speed with which fulfillment models have changed has taken many manufacturers and wholesalers by surprise. The impact on cost, productivity, margin and profitability cannot be underestimated. There is little chance that these exceptions – typically running at around 10% of overall business – are likely to diminish. With both B2B and B2C customers becoming ever more demanding, the efficient one-size-fits-all approach no longer applies.

If organisations are to regain control by effectively managing these exceptions there are two fundamental aspects to address: productivity and planning, and the priority will depend on the current business state. The way in which organisations handle the 10% of exceptions is key. While those with poor processes and systems will struggle to remain efficient and competitive, those companies that embrace the right systems can differentiate themselves by being good at handling these exceptions and will have a significant market advantage.

Organisations of every size have achieved significant improvements in efficiency and agility by streamlining the supply chain over the past couple of decades. The changes that have occurred more recently, however, risk fundamentally undermining hard won profitability and margin. Both consumer and business customers are becoming ever more demanding, creating more complex supply chain and fulfillment models for manufacturers, wholesalers and logistics companies alike.

Iptor Supply Chain Systems, formerly IBS, is a global leader in supply chain management, planning and logistics software and services. The company helps distribution-focused organisations solve their most complex order management and fulfillment challenges within fast-moving, multi-channel and global supply chains.

The additional staff required to pick and pack individual orders to the new distribution costs, the complete lack of predictability associated with consumer buying habits and the penalties imposed for late and short shipment, is an entirely different model to the traditional B2B fulfillment process. B2B customers are also becoming ever more demanding. Specific labeling and packaging is becoming a standard requirement. Companies are fast discovering that these changes are demanding far more time and resources.

IBS is now

TM

Serving 1,250 customers with 4,000 installations in more than 40 countries, Iptor Supply Chain Systems provides fully integrated enterprise solutions, with highly adaptable and robust software backed by world-class support from supply chain experts. Available on-premise or as a fully managed cloud service, Iptor Supply Chain Systems offers compelling value to customers across distribution, 3PL and publishing sectors.

Visit www.iptor.com.

Software and services that solve the most complex challenges in distribution, where exceptions are the rule.

What’s your 10%?

10% Exceptions

It’s a 90/10 world for distribution businesses

iptor.com/rule-the-exception 90% Predictable

SCLAA Newsletter October 2016

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National Partner The Toll Group As you are aware the SCLAA is a not for profit Industry Association, run by members for members. Our ability to support the SCLAA infrastructure and to expand is highly dependent on our National Partners, one of which we newly welcome is Toll.

We ask all our members to support our valued National Partners where they can. We asked Toll to tell us about themselves: The Toll Group is a world-class integrated logistics provider.

We operate in over 50 countries around the world in over 1,200 sites, employing approx. 40,000 people around the world. The Toll Way is how we undertake our business; it explains what is important to us at Toll. We value integrity and trust, safety, continuous improvement, teamwork and being open and transparent.

Toll People are a unique business unit within the wider Toll Group. We were established in part due to the lack of specialised recruitment services available within the marketplace. We have a genuine passion to provide quality recruitment services. The Toll Group’s standards for employment services were, and still are so exacting that the recruitment was brought in-house and Toll People began its operations of sourcing and placing candidates internally.

Toll Intermodal Cristal Broken Hill Train arriving at Hub

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SCLAA Newsletter October 2016

While we were incredibly successful in supporting the Toll Group, we found ourselves in the position of having a tried and true recruitment process through which we were sourcing the best candidates in the market. Given this success, we saw an opportunity to not only assist Toll but our highly valued partners. With a mission to supply and retain temporary and permanent candidates of a quality superior to that provided by our competitors, we provide executive permanent recruitment, labour hire and business support personnel to Toll but also to a number of key external business partners.

Toll People entered the mainstream recruitment market and 12 years on, we are Australia’s most recognised provider of Transport, Logistics, Supply Chain and Warehouse staff. www.tollgroup.com/tollpeople

Toll Group Level 7, 380 St Kilda Road Melbourne VIC 3004 Australia T +61 3 9694 2888 www.tollgroup.com Toll Holdings Limited ABN 25 006 592 089

Toll Intermodal and Cristal collaboration Media release doubles supply chain capacity 20 October 2016

Toll Intermodal and Cristal collaboration doubles supply chain capacity Toll Intermodal, a leading freight transport solution provider, and Cristal Mining Australia have worked together to create a supply hub in Broken Hill that efficiently transports mineral products to Adelaide and doubles supply chain capacity – successfully positioning Cristal Mining Australia for its future growth.

And now, this successful collaboration has been further recognised with Cristal announced as the winner of the Entrepreneurial Procurement Organisation of the Year at the 2016 Procurement and Supply Australasia Awards.

As one of the largest producers of titanium dioxide and titanium chemicals, Cristal Mining required a solution for its Broken Hill hub that would improve efficiencies and increase capacity to accommodate growth 15 years into the future.

The recognised solution was centred on longer and heavier trains to increase capacity. Toll Intermodal enabled this through infrastructure improvements, new multi-purpose equipment and improving the materials handling process.

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The hard stand was expanded by 6000 metres ; the Broken Hill hub rail line was increased by over 400 metres; and by pre-loading containers to allow a new container-on container-off approach, together with more powerful and efficient material handling equipment, loading time reduced from 18 hours to five.

These simple and creative modifications have resulted in increasing the payload on every train by 40 per cent and a 30 per cent reduction in train paths – improving environmental impact with less fuel and carbon emissions.

And since the solution has been in operation, there have been zero safety incidents and injuries after more than a year.

Trevor Cameron, Asia Pacific Procurement Manager at Cristal praised the collaborative approach. “Instead of saying it couldn’t be done, Toll Intermodal worked with us to develop this entrepreneurial solution and meet our just-in-time logistics needs.”

Shaun Mooney, Executive General Manager at Toll Intermodal said, “At Toll, we work closely with our customers, such as Cristal, to understand their business needs. By leveraging our industry-leading capability and experience, we can design intelligent best-fit freight solutions that maximise efficiency and optimise outcomes”.

For more information and the watch the Toll Intermodal and Cristal collaboration video visit www.tollgroup.com/tollintermodal. <ends> About Toll Toll Group is the Asia Pacific region’s leading provider of transport and logistics, employing approximately 40,000 people across some 1,200 locations in more than 50 countries. Toll’s specialist logistics capabilities incorporate a range of sectors including defence & government, industrial, manufacturing, mining & resources, retail and automotive www.tollgroup.com.

Toll Group media contact

Toll Intermodal media contact

Tara Ballard Communications Advisor, Corporate Communications +61 3 9694 2854

Kristy Ellery Marketing and Communications Specialist +61 402 975 839

Toll Intermodal Cristal - loading the Train at BrokenHill

Shaun Mooney and Trevor Cameron at Broken Hill Hub

SCLAA Newsletter October 2016

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Finalists announced for the 2016 Australian Supply Chain and Logistics Awards The Supply Chain & Logistics Association of Australia, in conjunction with RAMCO, Dematic and Xtreme Freight officially announced today the finalists for the longest running and most prestigious awards program in the industry.

Having served the industry for over fifty-five years, the ASCL Awards are the most recognised and esteemed awards for an individual or a company to be awarded.

Winners of the Australian Supply Chain & Logistics Awards will be announced on at the ASCL Award Gala dinner to be held on Wednesday, 23 November 2016 in the Grand Ballroom at Luna Park, Sydney. Click here to register to attend the ASCL Awards Gala Dinner.

Industry Excellence 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: Dr John Gattorna, Gattorna Alignment; Charles Kim, Toyota; Nikki Barbi, Ergon Energy; Melissa Taylor, Taylor’s Removals and Storage; Anthony Goninan, Department of Defence; and Kingsley Cherry, Pacifix.

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 2016 Future Leaders Award will be awarded an enrolment into the Leadership Management Australia’s ‘The Performance Edge’ 10-week development 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 8

SCLAA Newsletter October 2016

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.

Finalists are: Kieran Boyce, eStore Logistics; Nathan Sugars, Lion Dairy and Drinks; Dillon Singh, IBM; Luke Alford, Silk Logistics; Chayal Ramjee, Queensland Transport and Main Roads; Jeff Zhang, Fletcher/Tradelink; and Kylie Cue, Downer EDI.

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 Kathmandu; Andrew McSweeney, ScuzzTrans; David Munro, Queensland Rail/David HR Consulting; Timothy Joseph, Department of Defence/Inovasys; Tony Nichols, Toll; and Haymans Electrical Brisbane Airport.

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: Mike Steele, National Mailing & Marketing; Belinda Polglase, All Purpose Transport; Matt Clark, Young Guns Container Crew; and Prof Behnam Fahimnia, University of Sydney.

Information 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: Leigh Williams, eStore Logistics; Dawn Burdett, Cloud Logistics Solutions; Warwick Mendham, SVS Australia; Nigel Edwards, Australian Red Cross Vision Systems; Nigel Edwards, Australian Red Cross Bulk Shipper (Blood); Nigel Edwards, Australian Red Cross RFID; Deanne Hawkswood, Department of Transport & Main Roads; and Roy Sargent, Department of Public Works.

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 judgesâ&#x20AC;&#x2122; 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.

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: ICOS LIVE, Kathy Ross; Kathmandu

Toyota/Siecap, Charles Kim;

and

To register to attend the 2016 Australian Supply Chain & Logistics Awards visit the 2016 ASCL Awards Gala Dinner page on the SCLAA website.

For any queries, please contact the SCLAA National Secretariat on secretary@sclaa.com.au or 1300 364 160.

The winner will of this Award will be announced on the night.

Accommodation for ASCL Awards, Sydney, 23 November 2016 A number of rooms have been blocked booked at the North Sydney Harbourview Hotel, 17 Blue Street, North Sydney.

These are available for any of those attending the ASCL Awards Gala Dinner at Luna Park on 23 November 2016.

Bookings will need to be confirmed with a credit card number by 31 October. After this date the rooms will be released.

North Sydney Harbourview Hotel is located close to Luna Park and the rate available to ASCL Award attendees is $235/night. To reserve your accommodation, book directly with the Hotel (02-9955 0499), advising the Hotel that you will be booking accommodation from the SCLAA block

SCLAA Newsletter October 2016

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Straight Talking

David Doherty OAM David Doherty OAM is a past President and Life Member of the SCLAA and a highly regarded logistician. Send your Straight Talk feedback and comments to davdoh1@optusnet.com.au

The Queensland Supply Chain and Logistics Conference raised interesting issues about engagement and alignment in Organisations. The underlying issue of course is how do you get the people in an organisation to perform at their best in an environment that is conducive to ongoing organisational and personal success.

Deciding to pursue engagement or alignment as a strategy is not really a choice. Both are important. In my world these are peripheral to the idea that compassion, caring, understanding and continuous learning are the really significant “human” attitudes to practice every day in the workplace. Do you work in an environment where the leaders and the employees walk the talk on “people are our greatest asset”? Most likely they do not constantly exhibit the desired qualities.

Many workplaces issue glossy pronouncements extolling the Mission Statement with a promise to value, care and develop all the people in the organisation. Often the pursuit of these aims fatally collapses when actual behaviours fail to live up to the lofty aims.

I know it is hard going in the cut and thrust off business to focus on valuing and looking after others. The unabashed ambitions of many managers also preclude any noble gestures. However real leaders know that the success of the people they are responsible for will ultimately determine their own success.

I learned later in my business career that “leaders as followers” are the very best you can get.

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I met James Anderson in the USA some years ago. He suggested I go back to my workplace and sit outside the office of someone working in a job I would want to get, and then observe the behaviours of that successful person. Anderson then said I should determine whether I would be prepared to adopt those behaviours to get a promotion.

My betting is many organisations reward behaviours that are not based on caring, compassion and values (i.e. treating people as though they are the greatest asset!)

Of course any improvement demands that you stand up and be counted when performance reviews and such are performed. Personal values and principles are meant to be on show every day, and hour of the year. You too are responsible for initiating change. Take up the challenge now!

Have you ever had an outstanding leader that guided you to become the best you can be? If you have I reckon you should let that person know how grateful you are to have been guided by them. Do it even if you no longer work with them!

I am always very grateful for the early years I spent working with General Motors Holden. I still use things I learned from the excellent caring and learning enabled professionals who steered me through those early development years.

As always the Queensland Conference was a catalyst for thought provoking ideas. I came away challenging some of my long held beliefs.

That is a very useful thing. Even more crucial was that I was able to reinforce and gain strength in pursuing some key planks in my existing behaviour set.

By the way, I believe the “macho” style of management many of us experienced and some pursued, will cease to exist as the current and next generation takes over. The debate about diversity and gender and race equality are irrelevant if objective, unbiased and merit based decisions become the norm in choosing people to sit on boards (and such), and in selecting people for employment. In my opinion quota systems are an absolute farce. They represent an attempt to use a “macho” type system to bludgeon decision makers in to choosing someone based on their gender, race and such regardless of who is the best person for the job! I say fix the problem at the source.

Ensure merit based, objective and nondiscriminatory decisions are rewarded in all fields of endeavour.

Supply Chains are an ideal place to ensure people are treated as our greatest asset.

Every Supply Chain Professional and Practitioner is an agent for change. It is critical that all participants in a Supply Chain understand the critical necessity to share extra value generated from the Value Chain.

2016/2017 must be the year we collectively set out to transform the business and academic communities to adopt people focused principles in all our endeavours.

This must entail a commitment to adopt merit based unbiased selection processes every time!(Bill Shorten please note).

Make a commitment now to attend the 2017 Queensland Supply Chain and Logistics Conference. It will be the catalyst for your ongoing transformation.

“Teamwork is having someone else you can blame it on” (Anonymous)

Western Australia

Division Report Kym Parry President

On a cold wet windy night in Perth a band of intrepid SCLAA members ventured out to the Whipper Snapper distillery in East Perth.

The distillery is tucked away in a back street, close to the railway line and you wonder whether you are heading in the right direction until you smell the yeast and the full grain mash.

Our guide for the night, Liam, was passionate on the subject of whisk(e)y and is no doubt a full bottle on the subject. They use 100% locally sourced W.A. ingredients and age the whiskey in fresh charred South American white oak barrels.

The tasting was conducted with spirit and we enjoyed the difference between the Crazy Uncle Moonshine and the Upshot Australian whiskey.

The distillery is working on developing a range of mainly bourbons but a single malt is already in its cask. We all voted on a return visit in a couple of years to further appreciate the Whipper Snapper range.

Whipper Snapper Distillery Visit: 15 September

Hard work doesn’t scare me.

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Let’s get to work

trojanrecruit.com.au

ADEL AIDE • BRISBANE • GOLD COAST • MELBOURNE S Y D N E Y • N E W C A S T L E • P A R R A M AT TA • P E R T H SCLAA Newsletter October 2016

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ACT & Southern NSW

Division Report Gary Pearce President

Since our last newsletter we held a very successful monthly meeting at our local Australia Post Business Centre. Member attendance was up on our previous meetings, indicative of sound support for the committeeâ&#x20AC;&#x2122;s efforts in arranging visits to member and non-member logistics businesses.

Frank Kimori (Manager, Canberra Major Customer Acceptance Team) kindly provided us with a guided tour throughout the site, delivering a detailed account of how the centre runs. He demonstrated how over a 24 hour period the focus of the site changes to accommodate the different deliveries (priority/ regular mail and parcels) that they encounter over the 24 hour cycle. He demonstrated several of the sorting machines and explained how mail that would otherwise be lost is dealt with.

Many thanks to Frank and his Australia Post team for their kind offer in hosting our meeting.

National Mailing and Marketing have recently won the 2016 ACT Medium Employer of the Year Award at the annual ACT Training Awards. NMM are now waiting to see if they will be short listed to attend the Australian Training Awards in Darwin in late November, where they will compete against other State and Territory finalists from around the country.

National Mailing and Marketing, along with Toll Customised Solutions (Canberra), have both been nominated for different categories in the upcoming 2016 Australian Supply Chain and Logistics Awards, the winners of which will be announced at the Awards presentation night at Luna Park on 23rd November. As key members of our local Division we wish them well in the awards this year.

The 2016 ACT Training Award for Medium Employer of the Year being presented to Mike Steele (National Mailing and Marketing) by Mr David Dawes, Director-General Economic Development Directorate, ACT Government.

56TH ANNUAL AUSTRALIAN SUPPLY CHAIN & LOGISTICS AWARDS BOOK NOW! WEDNESDAY 23 NOVEMBER 2016 12

SCLAA Newsletter October 2016

Victoria / Tasmania

Division Report Yit Ming Ng

The Victorian SCLAA had the opportunity to host a free site visit at the Toyota vehicle manufacturing plant based in Altona, Melbourne on the 30th August 2016. The tour consisted of an overview of Toyota’s history in Australia followed by an in-depth walk around their stamping plant, highly automated body and paint shop while finally going through the vehicle assembly line where participants saw how the cars (Camry, Camry Hybrid and Aurion) get put

together using the Kanban system which is used to improve manufacturing efficiency. Another highlight of the tour was the successful implementation of multiple automated guided vehicle’s (AGV) across the facility which contribute to improved workspace and process efficiency. It was clear to see that engineering and manufacturing a car is an extremely complex process and showcased Australia’s automotive manufacturing capability that we should all be very proud of.

SCLAA Newsletter October 2016

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Advertorial

5 Tragic Reasons Your Supply Chain Career is Stagnant No matter whether your supply chain or logistics career is at entry level, a career change, operational, executive or senior management, you are the ruler of your career destiny and ultimately responsible for its direction and success. Here are some potential reasons why your supply chain or logistics career hasn’t yet met your goals and expectations.

1. No Career Plan Let’s face it, there are a myriad of career choices within supply chain a nd logistics, and it can take time to find ‘where you fit’ and ‘your passion’. But the quicker you ‘find your calling’, the faster you will be able to develop and execute your career plan, and achieve your goals.

A list of supply chain and logistics capabilities where expertise can be developed is listed here: www.supplychaincoach.com.au/expertise (scroll down to the dot point list).

As your career, experience, interests and expertise grows, what you want from your career will most likely change, many times over.

A career plan does not necessarily mean a corporate ladder roadmap to the highest level within a company.

It is simply a plan which identifies how to achieve what you want from your supply chain or logistics career, regardless whether that is to be an Inventory Analyst or the Vice President Supply Chain of the Asia Pacific region, or a Subject Matter Expert in a specific area or methodology.

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SCLAA Newsletter October 2016

Advertorial

2. Career Plan Not Fully Executed That’s excellent you have a career plan, but for some reason or another, you haven’t been able to execute it how you would have preferred. Here are some key issues which may be impeding your progress:             

a specific situation is making the plan currently unattainable your interests have changed or you’ve lost focus on your goals no opportunities to get the experience required or you are in-between dream jobs no experts to work with and learn from unsure how to implement new knowledge avoiding risk has been the easier option other priorities have had greater urgency lack of confidence to forge ahead you’ve been subjected to unconstructive criticism, unfairly overlooked and have lost momentum you’ve found cracks in your plan and have realised a lot more skills are required to achieve your goals you have substantial qualifications, certificates, experience and expertise, but you’re stuck and undecided about what your next move should be you have not clearly communicated your career plans to those who should be aware of this you have been waiting years for a promotion that’s never going to happen.

3. Understating or Overstating Your Expertise There are at least 60 supply chain and logistics skills sets that are required at expert levels to establish worldclass supply chains and operations. You will need at least one of these skills at expert level to catapult your career. Chances are, you most likely have many of these skills, and at varying degrees of expertise. But without identifying what they all are and understanding the level of your expertise within each skill set, you are most likely underselling yourself when career opportunities arise.

On the flip side, only a brave person calls them self an expert in a particular area unless they have substantial expertise, experience and evidence. Any gaps in expertise can be addressed through receiving Coaching and Executive Education from Supply Chain Coach® as we purposely maintain an inventory of the 60 supply chain and logistics skills sets at expert-level within our Team.

SCLAA Newsletter October 2016

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Advertorial

4. How You Operate Could Be Letting You Down It’s not just about technical expertise. How well do you know yourself? It is critically important to be aware of your strengths but especially your developmental areas.

How you view the world, work with others, make decisions, solve problems, deal with stress, gather information, approach conflict resolution and change – all have a direct impact on your ability to seize career opportunities, be considered for promotions and achieve your goals.

5. You’ve Lost Your Competitive Mojo Frustrated? Good. Action happens when you’re frustrated. You need to be the full package to succeed in your supply chain and logistics career. This includes:         

dressing for success with a professional appearance suitable to your work having a highly impactful LinkedIn profile to boost your personal brand presence having an excellent, effective and suitable resume that is regularly updated due to your rapid expertise progression building your professional network to broaden your opportunity reach clearly communicating your career goals and expectations becoming an interviewee expert broadening your job search options capitalising on opportunities to further build your expertise, utilise your strengths and address your developmental areas leading by example.

What’s your next step to end your career struggles?

Time to exit your ‘career rut’ and take back control of your destiny.

Supply Chain Career Accelerator by Supply Chain Coach® provides guidance for ambitious professionals to build their personal brand and accelerate their career SCLAA Newsletter October 2016 16 in supply chain and logistics.

includes:         

Advertorial dressing for success with a professional appearance suitable to your work having a highly impactful LinkedIn profile to boost your personal brand presence having an excellent, effective and suitable resume that is regularly updated due to your rapid expertise progression building your professional network to broaden your opportunity reach clearly communicating your career goals and expectations becoming an interviewee expert broadening your job search options capitalising on opportunities to further build your expertise, utilise your strengths and address your developmental areas leading by example.

What’s your next step to end your career struggles?

Time to exit your ‘career rut’ and take back control of your destiny.

Supply Chain Career Accelerator by Supply Chain Coach® provides guidance for ambitious professionals to build their personal brand and accelerate their career in supply chain and logistics.

If you want a seriously competitive approach to advancing your supply chain or logistics career, a Supply Chain Career Makeover from Supply Chain Coach® can help you to:  

 

Establish a tailored career plan Identify all of your supply chain and logistics skills, level of expertise and gaps, so that you have greater clarity about the depth and breadth of your expertise (using the Supply Chain & Logistics Expertise Self-Assessment) Understand yourself better, identify your strengths, identify areas requiring further development and identify career types most suited to you (using the Myers Briggs Type Indicator) Improve your LinkedIn profile, resume and career search efforts.

Supply Chain Career Coaching is also available for the serious professional keen to accelerate their supply chain and/or logistics career and expedite their career success by getting back their competitive mojo.

Supply Chain Corporate Career Development & Transition is available for companies and organisations requiring assistance to inspire and motivate their supply chain and logistics teams to progress their career internally, or assistance to transition staff towards external career opportunities.

It is time to get seriously competitive and give your personal brand a swift boost in the right direction. Let’s reignite the fire in your belly and get you the supply chain or logistics career you really want.

Get started with Supply Chain Career Accelerator https://www.supplychaincoach.com.au/coaching/supply-chain-career-accelerator/

1300 572 329 www.supplychaincoach.com.au

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Winners announced for 2016 Queensland SCL Awards The winners of the 2016 Queensland Supply Chain & Logistics Awards, which have been developed by the Supply Chain & Logistics Association of Australia in conjunction with ABB Enterprise Software, All Purpose Transport and Leadership Management Australia (LMA), were announced in front of 300 people during the annual charity dinner at the 17th Queensland Supply Chain and Logistics Conference which was held at the SOFITEL Brisbane Central.

Queensland Future Leaders Award The Future Leaders Award, which is sponsored by All Purpose Transport, is designed to provide incentive and recognition to young professionals who are both currently working in and wish to continue their career path within the Transport, Supply Chain and Logistics Industry. The winner of the 2016 QLD Future Leaders Award has been awarded an enrolment into the Leadership Management Australia’s ‘The Performance Edge’ 10week development program valued at $5000. The LMA program assists participants to improve their personal performance and productivity as well as that of their team.

The winner of the 2016 Future Leaders Award is Nathan Sugars, SEQ Network Coordinator, LION Dairy & Drinks. Nathan began his career in Logistics. It is an area in which he thrives and in which he sees a fantastic future for himself and other wanting to put in the hard yards.

Nathan has been responsible for a number of successful projects that have resulted in very significant improvements in efficiency and cost savings. Most recently and perhaps most significantly, Nathan has been responsible for implementing transport management software for Lion that has enabled transparency for the business, achieved DIFOT (Delivered InFull, On-Time) and cost targets. This system is to be rolled out nationally.

Nathan has a strong will to succeed, a strong work ethic and excellent people management skills and relationship building. He sees his preferred role as a job that offers consistent challenges with the opportunity for strategic planning and problem solving.

He hopes to complete his Masters in Supply Chain Management at Griffith University in 2017.

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SCLAA Newsletter October 2016

A High Commendation was awarded to Chayal Ramjee, Principal Procurement Advisor, Chief Procurement Office, Department of Transport and Main Roads.

Finalists were: Luke Alford, Warehouse Supervisor, Silk Contract Logistics, Kylie Cue, Category Manager, Downer EDI Mining, Max Pearson, Procurement Project Officer, Stanwell Corporation, Chayal Ramjee, Principal Procurement Advisor, Chief Procurement Office, Department of Transport and Main Roads, Nathan Sugars, SEQ Network Coordinator, Lion Dairy & Drinks, Luis Vargas, Purchasing/Procurement Officer, Capral Limited and Jeff Zhang, Business Analyst – S&OP, Planning and Performance, Fletcher Building Limited – Tradelink Plumbing Supplies.

Queensland Industry Excellence Award The Industry Excellence Award, recognises and acknowledges the outstanding achievements and contribution by an individual currently working within the Transport, Supply Chain & Logistics Industries.

The winner of the 2016 Queensland Industry Excellence Award is Nikki Barbi, General Manager Fleet & Logistics, Ergon Energy.

Nikki has worked in the electricity industry for 28 years and is a highly experienced professional who is an expert in procurement, logistics, fleet, finance, works programming and planning and customer service.

Nikki has led strategic projects and initiatives across a number of these areas leading to significant cost savings and innovation for her employers. The most notable projects include:

•

Implementation of a Talent Placement program for personnel to work with her team for 6 – 12 month with the effect of increasing the business understanding of the Logistics function and the end to end Supply Chain. Implementation of technology in the Logistics operations such as bar coding, expanding use of equipment and improved workforce scheduling to deliver: - -

•

a reduction in Operation Inventory holdings of $7M during 2015/16; and cost saving of $2M per annum.

In the 2015 Cyclone Marcia response, her team: -

established a temporary warehouse in 2 days; and

-

provided fleet support with provision of fuel stations and pre-operational safety checks of all fleet on a daily basis.

·

Implementation of Ellipse 5 (ERP System) improvement opportunities delivering $8.8M in benefits.

Nikki is an outstanding candidate who has contributed significantly to the industry and who is sure to continue to drive innovation and change that will benefit the Supply Chain and Logistics industry for years to come.

A High Commendation was awarded to Melissa Taylor, Managing Director, Taylors Removal’s Storage.

Finalists were: Nikki Barbi, General Manager Fleet & Logistics, Ergon Energy, Kingsley Cherry, Managing Director, Pacifix, Bob Dover, Matthew Guthrie, Senior Supply Coordinator, QLD Health, Ken Newton, Project Manager, TAE Gas Turbines, Graham Staier, Category Specialist, Stanwell Corporation and Melissa Taylor, Managing Director, Taylors Removal’s Storage.

Queensland Supply Management Award

Chain

The Supply Chain Management Award is designed to encourage and acknowledge the outstanding achievement of an organisation that has demonstrated significant achievement in managing the integration of Supply Chains. There were two winners - Haymans Electrical and ScuzzTrans.

Haymans Electrical has been a part of the Queensland electrical wholesaling landscape for over 30 years.

In 2013 Haymans decided that it needed a new, additional facility to house its expanding stock profile and accommodate its support people involved in projects, contracts and Logistics. Brisbane Airport Precinct was selected as the best logistical position for the business with the Gateway Arterial, tunnels and freeways all central and easily accessible.

This move gave Haymans everything that it needed with Gateway access(north and south) fast access to the city and Port of Brisbane and a growing precinct with constant investment

by BAC. There was a huge increase in Haymans ability to hold inventory, accommodate containers and run two shifts to service customers from 4.00 am to 8.00 pm, five days a week and 9 hours on Saturday.

The new facility allows for one manager, one management team and one procurement team across 2 businesses. This investment has provided a huge investment in its Supply Chain that will benefit Haymans and its customers for many, many years.

ScuzzTrans is a family-run Queensland-based transport company, with more than 30 year’s experience loading containers in and around the Port of Brisbane. ScuzzTrans was looking for a way to streamline its Supply Chain which was becoming more and more complex with time.

They needed a way to effectively manage the process of loading and offloading containers and freight and scheduling vehicle work flows. The answer came in the implementation of a track and trace management system combined with a Transport and Logistics management system.

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The result was an integrated system that simplified the Supply Chain Management process that: • • •

Grew ScuzzTrans business by 35%; Streamlined processes in the office and the cab; Increased container movement while retaining the same amount of staff; and • Delivered cost savings.

The system knows where its vehicles are at any one time and exactly what is on board. The impact of this system on ScuzzTrans has been enormous and it will continue to derive benefits for many years to come. It is a fantastic example to companies in Supply Chain & Logistics of what can be done over a relatively short period of time to streamline process and deliver benefits now and into the future.

and intelligence provides a clear and consistent source of information to all industry businesses seeking to raise their profile as an Employer of Choice through educating their people.’

Finalists were: All Purpose Transport and Pacifix.

Queensland Information Management Award The 2016 Information Management Award, which is sponsored

by ABB Enterprise Software, will go to the business that can best demonstrate it has made a significant achievement in the application of Information Technology within its Supply Chain.

The winner of the 2016 Information Management Award is the Chief Procurement Office, Department of Transport and Main Roads.

The Chief Procurement Office’s Data Classification (UNSPSC) focused on one thing: improving the quality of its procurement data - based on the premise that the cleaner the data that enters the system the more confidence CPO can have in relying on it for analytics,

Finalists were: Foodbank Queensland, Haymans Electrical, Pacifix, Queensland Rail & Davidson HR Consulting and ScuzzTrans.

Queensland Training, Education & Development Award The Training, Education and Development Award is presented to the company or institution that best demonstrates a significant achievement in aspects such as recruitment process, training, HR Systems, formal education and development programs which is both relevant to, and promotes the Supply Chain and Logistics Industry.

The Winner of the 2016 Queensland Training, Education & Development Award is All Purpose Transport.

For over forty years All Purpose Transport has been a significant Queensland specialist logistics company. Based on its core value of ‘Best People = Best Business’, APT set about an industry-first program (Project APT) in 2012 to train its entire workforce. Based on the enthusiasm of its people, APT decided that it would build on its Project APT and expand training to its Owner Driver fleet to ensure that they maintain and practice the skills they had achieved. In partnership with TAFE Qld, APT’s owner-drivers were encouraged to deliver and assess the Certificate III in Driving Operations qualification to APT’s Owner Driver fleet.

Project APT was further developed by APT and includes the following initiatives: • •

Nationally accredited qualifications for its entire workforce; Management Team undertaking a Bulletproof Manager Program; • Converting the Bulletproof Manager Course to an Internal Training Program; and • Participation in the GenR8 program with a student from Kingston College commencing the 20-week program on 11 April 2016.

Project APT is now in its 4th year and the process has been well documented for the purpose of providing a ‘How to’ guide for other employers through the Industry Skills Body. Its data 20

SCLAA Newsletter October 2016

decision making and reporting.

The scope of the project was to use a standardised set of material masters linked to TMR categories, GL codes and meaningful units of measure, in order to capture quality data (up front) to help drive better value for money outcomes through informed procurement practices and information. It also delivered better functionality in SAP that allowed for the identification of contract leakage and to encouraging purchasing under contract.

The result was that for TMR’s addressable spend in financial year 2015/16: •

89% of dollar spend was classified using the new classification structure.

• 73% of transactions were classified using the new classification structure.

The design, approach, and learnings from this project are very applicable and transferable to other organisations that are looking to drive benefits from improved procurement data. The lessons learnt have been shared across a number of government organisations and forums with considerable interest and positive feedback.

Apart from providing better quality information to CPO’s procurement professionals and its business customers about their buying and suppliers, this piece of work highlighted the commitment and drive by a group of staff to do something that would make a difference. That is a credit to those in this profession/industry.

The Queensland SCL Awards are the state feeder program for the Australian Supply Chain and Logistics Awards which will be held in November. The ASCL Awards have been running for over 50 years and are the most prestigious in the industry.

Queensland

Division Report Nerida Kelton - President Unique opportunity to view the Super Hornets

All Purpose Transport Opens Logistics Centre to SCLAA

Queensland Members recently had a once-in-a-lifetime opportunity to view the Super Hornets as a part of a fabulous tour of the RAAF Base at Amberley. The tour included a visit to No 36 Squadron to view a C17 Globe Master, as well as a brief on the C17 supply chain and warehousing facilities a tour of the C17 on the tarmac and the rare and unique chance to view the Super Hornets. The SCLAA would like to thank Wing Commander George Hodgson for organising this fabulous tour. We asked one of the attendees what they thought about the day…

Queensland members recently had the opportunity to tour Stage 1 of the new All Purpose Transport Logistics Centre; with another 2 stages currently being developed for future expansion.

The APT Logistics Centre footprint will total close to 18,000m2 of warehousing space along with 1000m2 of first class office space.

All Purpose Transport (APT) is a privately owned Queensland road freight company servicing south east and regional Queensland with depots at Berrinba, Loganlea and the Sunshine Coast.

Visitors visited the APT facilities including their operations; which encompasses their Transport Divisions of Couriers, Taxi trucks, Heavy Transport, New Furniture and Refrigeration. The Warehouse Facilities were also included as a part of the tour.

The Queensland Division would like to take this opportunity to thank Belinda Polglase and Paul Kahlert for opening up the Logistics Centre to the Members and for being fabulous hosts and supporters of the Association!

“After arriving at the RAAF Base Amberley our group was driven by bus around the base with Wing Commander George Hodgson, as host, highlighting the key points of interest for our tour. We first visited 36 Squadron, who operate the C17 aircraft, with a viewing of the C17 aircraft on the tarmac. We had discussions with the Logistics Officer from the Squadron, a C17 pilot and loadmaster; all who were very open when answering our civilian type questions. The logistics warehouse for C17 spares was our next stop and what an eye opener it was on what is required to keep these planes in the air. Once again the staff answered all our questions, which was great. The next stop was the best one…it was 6 Squadron the Super Hornets and we had the opportunity to see the aircraft at close quarters with maintenance and logistics staff showing off their plane and explaining its operation and the maintenance required to keep them in the air. All-in-all a great site visit that would be hard to beat. I am sure that if it comes up again many more will want to attend.”

With 2016 nearing an end please find below a list of the final events for the year for SCLAA, Queensland Division. Please note that you do not have to be a member of the SCLAA to attend these events; anyone who is interested in attending these events is most welcome. We hope to see you at one of our events!

Burt Beaumont, APPMA

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Queensland

Division Report - continued Champagne & Whisky Tasting Event 18 November Brad Wright, is one of Australiaâ&#x20AC;&#x2122;s leading authorities on single malt whisky. At this event, Brad will showcase four different styles of whisky, one from each of the key regions in Scotland; Islay, Speyside, Highlands and Lowlands. Also included in the event is Michael Byrne, a connoisseur of French Champagne, who will introduce you to the splendid flavours of the Champagne region.

Both champagne or whisky tastings, will be complemented by exquisite local fresh produce charcuterie boards prepared by Annie Pease from the renowned Paddington Deli & Epicerie.

All profits from this event will go to providing 800 Christmas Hampers and 300 Mothers Packs for families in need at Christmas.

TO BOOK CLICK HERE

Join us at Christmas to Pack over 1000x Hampers for Foodbank: Friday 9 December Each year our annual Christmas party focuses on helping other people at a time when they need it the most. It is about having fun and knowing that you have made a difference. Over the last five years, Members of the SCLAA, the AIP, the APPMA and the QSCLC, have packed 4300 hampers to the value of $541,000 for people in need. We have 800 reasons that we need your help again in 2016!

If you can help - CLICK HERE.

Viewing the Super Hornetsat the RAAF Base at Amberley was a once in a lifetime experience.

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SCLAA Newsletter October 2016

The Last Word...

The Driverless Supply Chain – Can Logistics Be Fully Automated Within 5 Years? Charles Edwards The driverless supply chain is coming, it is no longer a question of if, but when. Autonomous cars are already starting to hit the road with Uber recently introducing a fleet of 100 driverless Volvo SUVs in Pittsburgh, US. Though this implementation will have a driver behind the wheel in case of emergency, the technological leap has been made. Other car companies have made promise to release fully autonomous cars by 2018 (Tesla, Audi), 2019 (VW), 2020 (Toyota, GM) and 2021 (BMW, Ford) .

Along with fully autonomous cars, we can expect to see fully autonomous trucks make redundant swathes of logistics workers and slow to adapt companies in the not too distant future. If the mining industry is anything to go by, Rio Tinto saw a 13% reduction in load and haul costs in 2015 with just 69 driverless trucks (a fifth of its Pilbara fleet), these autonomous trucks outperformed their human counterparts by 12% on average and together with autonomous drilling have delivered an ROI of between 3:1 and 4:1 . The capabilities of motorway truck automation were also displayed in April this year when Volvo, Daimler and Volkswagen trucks completed a week long journey of predominantly autonomous driving across Western Europe to the Netherlands .

There are obvious and significant advantages to autonomous logistics trucks, by eliminating the human driver trucks can drive 24 hours a day at approximately 25% of the cost per hour of a truck with a human driver – who is currently restricted to a maximum of 12 hours work per day in Australia . That’s double the current daily throughput at half the daily cost.

Transport costs will likely reduce further with trucks travelling at optimal fuel efficient cruising speeds and extremely close to each other in a formation called ‘platooning’. With the likes of Tesla also entering the truck market, one can also expect the costs to decrease further once trucks are electric powered and, in some cases, connected to a free power network.

Within a decade driverless taxis, trucks and couriers will dominate our roads (regulations permitting). So what are the implications for supply chain?

Automation in the warehouse is not new, many organisations utilise Automated Guided Vehicles (AGV), Automated Storage and Retrieval Systems (AS/RS), in-line conveyors and other autonomous technologies such as truck loading systems. Amazon is a seasoned champion of autonomous warehousing. But the next big leap will be fully autonomous logistics.

Though it is inevitable, we cannot be certain when and at what rate logistics will be automated. While driverless trucks may be perfect for servicing main routes, complete automation of multi-nodal and expansive supply chain networks is likely to be some time away. The human element will remain in the

near-term due to the intricacies and sheer variety of location and product shapes, sizes and handling requirements.

Aside from unknown legislative requirements, there are a number of risks which may prolong fully autonomous logistics. In the short-term it remains unclear whether insurance companies will support the implementation of driverless vehicles, perhaps some premiums will outweigh efficiencies until providers are well and truly satisfied with driverless vehicle track records. Further, the value add of a human driver cannot be ignored in situations where things don’t go to plan. If a tyre blows what will the autonomous vehicle do? Continue to drive unsafely or delay delivery? In such situations a human driver could readily correct the issue in a matter of minutes. This risk will also subside as predictive maintenance and IT integration to organisations such as RACV allow for efficient management of maintenance and unplanned failures. Other risk management issues include the potential for GPS outage and rural areas where mobile networks do not reach.

By the time autonomous cars and trucks are legalised, it will be feasible to automate significant portions of many logistics networks. This includes transportation, loading and unloading, sorting, packing, storing and even stock counting. Drones such as Hardis Group’s EyeSee can replace the human task of stock counting by flying around isles and scanning barcodes – DHL is currently planning to implement drone counting technology into its stock taking process . So the question really is; where and to what extent will humans be needed in future logistics operations and will your organisation be ready for that world?

Charles Edwards is a consultant with GRA and SCLAA VIC committee member.

Charles’ previous clients include the Defence Force, MROs and ASX listed retail businesses within Australia. Charles has experience in supply chain strategic review, sales and operations planning, inventory optimisation, 3D printing and demand and replenishment planning.

He is particularly interested in business strategy, big data and the impacts of disruptive technologies on the supply chain.

Contact: cedwards@gra.net.au

www.gra.net.au

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2016

You are invited to the 2016 Australian Supply Chain and Logistics Awards Gala Dinner This historic and prestigious event has been hosted annually by the SCLAA for fiftysix years making it the most sought after, recognised and influential awards across all sectors in the Supply Chain industry.

Venue: The Grand Ballroom, Luna Park, Sydney Date:

Wednesday, 23 November 2016

Time:

6.30 pm (for pre-dinner drinks) to 10.30 pm

Dress:

Ladies - Cocktail, Gentlemen - Lounge Suit

Cost:

Individual tickets $ 180 inc GST Partner/Spouse $ 150 inc GST Corporate Table of eight $1,296 inc GST

BOOK TICKETS HERE

LIMITED SEATS - JOIN US FOR AN EVENING OF CELEBRATION AND ENTERTAINMENT PROUDLY SPONSORED BY PLATINUM SPONSOR

GOLD SPONSORS

Contact: secretary@sclaa.com.au or phone 1300 364 160