SCT Group – October 2018

Leveraging technology for transparent logistics

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SCT LOGISTICS:

Transparency and a commitment to service through digitisation WRIT TEN BY

OLIVIA MINNOCK

PRODUCED BY

ANDY TURNER

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SCT GROUP’S CIO SEAN ATCHINSON DISCUSSES HOW THE COMPANY’S JOURNEY TO DIGITISATION IS MAKING IT EASIER TO CARRY CARGO THROUGHOUT AUSTRALIA

W

ith 3,934km between Perth

joined by Sean Atchinson, a CIO

and Sydney, transporting

determined to bring technology to the

cargo across Australia is

fore and make digitisation instrumental

no mean feat.

Since 1974, SCT Group has been providing an alternative logistics

solution where options were previously 04

in fulfilling SCT’s aim to provide open, transparent and efficient service across Australia.

“Our growth has been achieved

few, and has grown to be the most

through a very focused approach to

efficient independent freight service

the business. In addition, more recently

in the country. Providing rail and road

there are only two major players in the

services hauling dry freight, refriger-

rail freight space: Pacific National and

ated and bulk cargo, the business

SCT,” Atchinson explains, praising

prides itself on openness and transpar-

Smith’s initial foresight in challenging

ency. It is also a company that, despite

the status quo of the nationalised rail

its substantial size and reach, cares

industry. SCT now provides logistics

about every single customer from the

services across the country and has

smallest business on its books to

a number of inland ports serviced next

world-renowned retailers like Aldi and

to mainline freight railways. In the past

Woolworths.

two years, SCT has opened two new

Founded by Peter Smith, SCT is still very much a family affair, with Peter’s sons Geoff and Glenn on the board of

inland ports: at Bromelton, Queensland and Wodonga, Victoria.

“We are predominately one of the

directors and the founder himself

largest freight movers East-West, from

maintaining a keen eye on operations

Sydney all the way to Perth, transport-

as chairman. In 2015, the Smiths were

ing freight that contains white goods,

“That journey of transformation through a technology platform is now starting to pay dividends to the business, and year on year I’m successfully taking costs out of the IT business” — Sean Atchinson, SCT CIO

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“ I work with all staff – if we’re rolling out a new technology, we’re on the warehouse floor with them.We understand what they’re doing, how they’re using it and what they need to use it for” — Sean Atchinson, SCT CIO

as well as foodstuffs from dry all the way down to -24 degrees.” SCT moves all this and more across the length and breadth of Australia with a commitment to making logistics faster, easier and more efficient.

From previously having a focus on road line haul that required two drivers to move it across the country, the business can now move a 1.8km train hauling 5,500 tonnes of freight across Australia in three days, all in one journey. In addition, the 300m-long Bromelton warehouse allows a train to run straight through it with no shunting required, so containers can be removed and wagons unloaded as smoothly as possible.

“In the three-and-a-half years I’ve been with the company, there’s been so much growth,” Atchinson reflects. However, it hasn’t all been smooth sailing. Atchinson joined the company six months after it had gone live with its new SAP environment – a vital digital solution for many businesses, but one which SCT needed the CIO’s help to implement properly. “They were actually talking about getting rid of it: they’d had a very tough go-live and were relying on consultants to support the business for a number of months post go-live. There were major issues throughout the systemic processing of customers’ orders to invoicing.”

Despite these teething issues, Atchinson w w w.sc t l o gi st i c s. com . a u

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CLICK TO WATCH: SCT BROMELTON LAUNCH VIDEO 09 had worked with SAP solutions through-

business, and year-on-year, I’m

out his career and wasn’t willing to give

successfully taking costs out of the IT

up on the world-renowned ERP

business.” Far from cutting corners or

platform just yet. “The transformation

laying off staff, these savings have

could have gone belly up, but working

been made simply by changing the

with some key support organisations,

way SCT operates.

as well as staff and executives right

“We’ve in-sourced our support rather

up to Peter Smith, we’ve kept SAP and

that outsourcing,” Atchinson explains.

turned the whole environment around.”

“We’ve also renegotiated with core

Fast forward to today, and proper,

partners and gone into new commer-

collaborative development of the

cial contracts which have allowed us to

platform is actually saving the firm

save money by utilising the technology

money. “That journey of transforma-

better than we previously have. For a

tion through a technology platform is

CIO, it’s a rare opportunity to come in

now starting to pay dividends to the

where something’s failing and be able w w w.sc t l o gi st i c s. com . a u

to turn it around.”

Through Atchinson’s work and senior leadership support, technology has been successfully brought to the fore of SCT and

1974 Year founded

is embraced as a driver – almost literally – of the logistics giant’s growth. “We’ve recently introduced new technology in all of our trucks which allows us to do electronic work diaries for our drivers and fatigue management.

Drivers can now control their breaks without having to go through the paperwork.” In addition, technology is used to allow trucks and deliveries to be tracked more effectively and SCT is looking to move electronic 10

delivery and pickup management onto a new platform which will integrate better into cabs and carry all the information necessary for a fleet, using a single SIM card per vehicle. “The ability to have a single SIM that controls the phone, telematics and tablets in our trucks will have paid for itself within three years just through telco savings,” Atchinson enthuses.

As well as making life easier for staff, a customer reporting platform has been introduced to bolster SCT’s commitment to service. “We’ve rolled out a customer reporting portal which allows our customers to track all the movements of their freight. We notify them when we’re going to pick up and they can see it online in a report to the time that it has been delivered, as well as being provided

1,000+ Approximate number of employees

with proof of delivery.” Atchinson

transparency of data,” says Atchinson.

explains that all this is done in almost

“It’s there at their fingertips, allowing our

real time – or around four seconds

account executives and customers to

behind our core platform.

talk in exactly the same language.

Now, looking to trade electronically with national customers in the B2B space, SCT is also developing a B2B

We’re looking at exactly the same pieces of information.”

A common worry related to automa-

template based on GS1 – the global

tion is that the human touch will be lost

developer of business standards for

but Atchinson is keen to point out that

communication such as barcoding.

this won’t be the case for SCT. “We

“We’ve worked very closely with GS1

haven’t removed the account execs.

and also our members within that

The customer can do self-service and

environment.”

still have face-to-face contact. SCT

One of the most important things to

prides itself on this. This relationship is

ask of any digital transformation is what

absolutely key for Peter – that’s how he

it will mean for the customers involved.

built the business and that mentality

“It’s tracking; it’s all of their history; it’s

still exists today. We still have that very w w w.sc t l o gi st i c s. com . a u

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personal approach, but technology

they’re doing, how they’re using it and

is an enabler to allow transparency

what they need to use it for. Feedback

between customers, account execs

from those at the forefront of what has

and account managers.”

been rolled out is critical to any

In terms of finding the right digital solution to help SCT grow, transparency with both staff and vendors is key.

success that a technology platform provides to the business.”

In the coming years, growth at SCT

“We run roundtables regularly,” says

is set to take many forms across its

Atchinson. “It’s very consultative. I work

divisions from property and rail to solution

with all staff – if we’re rolling out a new

enablement. “We’re looking to remove

technology, we’re on the warehouse

a lot of the manual steps and provide

floor with them. We understand what

technology that supports growth and

“We still have that very personal approach, but technology is an enabler to allow transparency between customers, account execs and account managers” — Sean Atchinson, SCT CIO

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supports a mission with our customers

ache) to an integral driver of growth

to provide further transparency on their

and service excellence for the company.

end-to-end moving of freight. My focuses

“Now, if I speak to the board it’s about

right now are expanding IoT across our

what we’re going to do next. It’s about

transportation methods – movement into

looking forward,” he concludes. We

cloud is key. As we grow, our technology

want to build on what we’ve got. We’ve

platform will allow us to upscale, pretty

got sustainability, we’ve got perfor-

seamlessly, our hardware.”

mance, we are enabling our business.

It’s clear that even throughout

“The conversation has completely

Atchinson’s own journey at SCT Group,

changed. It’s not about ‘time to throw

technology has gone from being an

it out’, it’s about ‘we want to do this

add-on (and indeed at times a head-

with our business’.” w w w.sc t l o gi st i c s. com . a u

SCT Group (SCT Logistics) 7 Westlink Ct, Altona, VIC 3018, Australia T +61 3 9931 5333 | www.sctlogistics.com.au