Supply Chain Digital - November 2014

w w w. s u p p l yc h ai n d ig i t al . c o m

N ove m b e r 2014

Outsourcing

The Benefits for Buyers and Suppliers Three Key Steps

Warehousing in an OmniChannel World Logistics

The Green Supply Chain

Wax Digital’s

Google Glass Procurement

System unveiled

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ed i t o r ’ s c o m m ent

More than able W e a r a b l e , t r a c e a b l e , a n d s u st a i n a b l e .

They all sound the same but they are also three key issues that appear in our leading front of book features in this November issue.

First off, we delve inside the company which is behind the world’s first wearable procurement system on Google Glass; Wax Digital. Next up, we have the pleasure of publishing a Nobel Prize winner in Dr Richard Tipper. He talks about the future of the ‘Green Supply Chain’ where he predicts satellites and digital traceability to open new opportunities for engagement between the consumer and producers of organic, sustainable goods.

We also have warehouse management and outsourcing covered by JDA Software and Elemica respectively.

As always, rounding off the features list is the Top 10, which is all about the best global brands from a logistics perspective.

Sam Jermy

Editor

sam.jermy@wdmgroup.com

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Co n t e n ts

Features

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8

Technology

Web3 Wearable: The World’s First Wearable Procurement System

Top 10

Logistics Brands

Logistics

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Looking at how a Green Supply Chain will develop

Supply Chain Management

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The 3 Key Steps of Warehousing in an Omni-channel World

Outsourcing: The Benefits for Buyers & Suppliers

16

Procurement

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W E

S U P P O R T T H E

L E A D E R S

s u b s e a | a c c o m m o d a t i o n | c a b l e | o ff s h o r e s e r v i c e v e s s e l s

Chartering Newbuilding Sale & Purchase Market Intelligence Consultancy / Advisory

Yo u r p a r t n e r i n o ff s h o r e s h i p b r o k i n g s e r v i c e s w w w. f e a r n l e y o ff s h o r e s u p p l y. c o m

Contents

46

152

56

Rail Track Association Australia

Confectionary Holding

Office Depot

104

Muskoka Airport

112

92

Corporativo UNNE

Ocean Shipholdings Inc.

120

company profiles Europe

USA

46 Office Depot

112 Ocean Shipholdings Inc.

56 Confectionary Holding 68 Enkay Express 78 Oriflame Cosmetics

latin america 92 Corporativo UNNE

canada 104 Muskoka Airport

Volvo Group Australia

australia 120 Volvo Group Australia 132 Liftronic Pty Ltd 144 Symons Group 154 Rail Track Association Australia

164 ID Logistics

BRAZIL 164 ID Logistics

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log i st i c s

Looking at how a Green Supply Chain will develop Satellites and digital traceability open new opportunities for engagement between the consumer and producer of organic, sustainable goods Writ ten by: Dr Rich a rd Tipper, Ch airma n of Ecome trica, a provider of geospatia l environmenta l information

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November 2014

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log i st i c s

Satellite data gathering As the UK emerges from the economic downturn and disposable incomes start to increase despite the squeezed middle, it means premium quality food, clothing and furnishing products are back on the rise too.

After some years of falling sales, organic products are rebounding and at the convenience end of the spectrum ‘premium ready meals’ saw eight percent growth last year.

One of the key ways in which 10

November 2014

premium products differentiate themselves is to provide information about areas of origin; from pictures and descriptions of farms, woodlands and the people who grow them, to narrative messages about their ethical and sustainable practices, as well as the physical quality of the product.

Even mainstream retailers are now adopting the opportunity to trace and engage with the originators of the product ingredients.

L o o k i ng at h o w a G reen S u ppl y C ha i n w i ll de v el o p

“As earth observing satellites gather more and more data on landscapes and sustainability at reducing costs, offering information on land use, ecosystems, climate and populations, there is a rich seam of content that can be used for engagement purposes�

Digital traceability - the ability for a customer to see where a product originates from and how it was produced, is increasingly attractive as a means of creating engagement between customers and producers.

While many consumers feel saturated by formal product information about ingredients, nutritional and product care, there is still an appetite for stories and

information.

The combination of digital traceability with the new wave of satellite data is likely to be the next offering in this area.

As earth observing satellites gather more and more data on landscapes 11

log i st i c s and sustainability at reducing costs, offering information on land use, ecosystems, climate and populations, there is a rich seam of content that can be used for engagement purposes.

It is increasingly possible to ‘click’ on a product link to find out what is happening, and has happened, in terms of deforestation, pollution, temperature extremes and droughts within and around the area of origin.

However, there are still a few technology barriers to address before this becomes widespread.

First is the question of how to offer an easy transition from physical to digital information when a consumer is ‘in store’. QR codes have been slower to take off than expected and there are debates over whether near field communications (NFC) will take over.

This barrier does not apply to online shopping of course.

Second, much of the sustainability information currently provided on products has not been formatted for mobile devices. This problem should be rapidly overcome 12

November 2014

as companies increasingly adopt responsive web interfaces.

Third is an issue of how to communicate in a clear way about products with multiple ingredients.

There is plenty of scope to over-

h o w a G reen S u ppl y C ha i n w i ll de v el o p

complicate things, but with some good technical editing skills this too can be addressed.

The fourth hurdle is more complicated for some products, as it involves understanding exactly where the materials originate from through often complex supply chains.

Traceability is one of the major challenges facing the food industry because it relates to consumer trust.

Yet, what seems on the surface to be a simple solution, by ‘just’ putting a pin on the map to show the place of origin, is much more complex for a large number of products.

The challenge is made greater because consumers have been given a misleadingly simple view from some food advertising of how food gets from farm to fork.

Sustainability labels have grappled with the traceability issue, so that they can pass the claim of sustainability from the farm gate to product on the shelf, for decades. As a result, several different methodologies have developed.

‘Sustainability labels have grappled with the traceability issue, so that they can pass the claim of sustainability from the farm gate to product on the shelf, for decades’ 13

log i st i c s 1. Identity preservation is recognised as the most robust form of traceability, where the material from a specific farm or production area is kept fully separated across the supply chain.

Such systems are practical for discrete products, such as animal carcasses, fruit and vegetable consignments, and for products that are processed and packed on or near to farms. This is the only form of supply chain management that allows full traceability of material from retail back to individual farms.

2. Segregated supply chains for certified materials such as coffee, cocoa or tea, from different farms

may be bulked together for ease of transport, storage or processing, but are kept physically separate from non-certified materials. However, this means it is only possible to pin down the supply to a broad area, rather than an individual farm.

3. Mass balance systems where the physical infrastructure for separating certified from non-certified materials is not available. This is commonly used when processing is done at a large scale, such as pulp mills, sugar refineries or bulk transport. While ‘sustainable volumes’ are booked into and out of a system on a mass balance basis, the physical material delivered

Identity preservation is the most robust form of traceability

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November 2014

L o o k i ng at h o w a G reen S u ppl y C ha i n w i ll de v el o p

Wild meadows and natural woodlands? You bet! to the consumer may not have originated from a certified production area.

4. Tradable certificates where materials are highly mobile, processed and commoditised, a digital certificate of sustainable material may be issued at the farm gate and applied to any material at the end of the supply chain, where it is redeemed and taken out of circulation.

In theory, this should ensure that the total volume of certified material is what it should be, but the physical

material may not have come from certified sources.

If these hurdles can be overcome, and there is little doubt this will happen over time, the supply chain must turn its attention to providing hard evidence behind the assurances of sustainability and the photos of wild meadows and natural woodlands.

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S u pply Ch a i n M a n a g e m e n t

The 3 Key Steps of Warehousing in an Omni-channel World Writ ten by: James Ward Senior Pre-sales Consultant at JDA and Andrew Kirkwood, GVP Sales at JDA Software

There are certain practices that can be put in place to amplify productivity in the warehouse, and these steps are just as important to those implemented instore

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November 2014

Retailers have long been aware that strategic placement of merchandise in stores can boost sales and create efficiencies for the workforce. As omni-channel shoppers grow in numbers, many retailers are replicating these store practices in their warehouses to try and reap similar benefits.

To meet the inventory accuracy,

resource management, customer service and information management demands of modern retail, businesses must evolve their warehouse operations. Using the right approach and technology will enable retailers to achieve just this.

Workforce Management Currently, engineered workforce

management standards are not widely used in warehouses or distribution centres. Research shows that the average warehouse operating without formal labour management capabilities operates at about 65-70 percent of its total efficiency.

This means that there is a possibility for warehouse managers to improve workforce productivity by 30-35 17

Supply Chain Management

Workers can waste time traveling back and forth from a central location to pick up a new assignment 18

November 2014

W areh o u s i ng i n an O m n i - channel W o rld

percent, without stretching capacity.

Unlike most automated systems in the warehouse, workforce management technology does not increase productivity itself.

Instead it helps encourage a more productive working environment; the real productivity gains come from getting the workforce performing the right tasks in the right way.

For example, if a retailer has 100 workers in a warehouse, each worker has a different way in which they perform tasks. The probability that all of them are performing each task in the most efficient way is very low.

Operational process design and the development of methods and standards is not something a warehouse management system will

‘By studying operational processes, warehouse equipment and the environment of the warehouse, retailers can best establish the most efficient methods around each task’

calculate; technology can accomplish the ‘right tasks’ part, but getting the workforce to perform their tasks properly is more complex.

It requires achievable working standards that can be measured.

By studying operational processes, warehouse equipment and the environment of the warehouse, retailers can best establish the most efficient processes around each task.

Task Interleaving Task interleaving can further increase warehouse efficiency by extending the use of accurate workforce data.

Many warehouse managers still use paper-based approaches to assign job tasks, which results in workers wasting time when traveling back and forth from a central location to pick up their next assignment.

But a modern approach to task interleaving can eradicate this time wastage by empowering workers to be immediately notified of their next assignment based on priorities, proximity and their qualifications, via a mobile device.

For instance a forklift driver whose primary role is to replenish a forward pick area from bulk storage could 19

Supply Chain Management be directed to other tasks during busy periods. In this case, he has been informed to pick a nearby pallet and take it to a loading dock for a delivery order of an in-demand clothing item. Using technology to prioritise capacity ensures that orders can always be fulfilled on time.

Warehouse managers who allow workers to pick multiple orders at the same time or in ‘waves’ can further help to reduce the travel and order cycle times.

Pickface Slotting Pickface slotting is the final step to creating warehouse operations fit for the omni-channel retail world.

Think of how you organise things at home; you probably keep coffee in a cupboard near the coffee maker; and your refrigerator might have shelves on the door to make frequently used items easily accessible.

In our everyday lives we organise, or slot, belongings to help us complete everyday tasks with minimal effort. In warehousing, slotting is the intelligent positioning of merchandise for the purpose of making fulfilment efficient. Slotting inventory can help retailers identify 20

November 2014

the best placement for each item.

If a retailer’s inventory has any degree of seasonality; if they support weekly/monthly campaigns for promotional item fulfilment, or have a large amount of new Stock keeping Unit (SKU) introductions into a facility, their business will benefit from proper slotting of forward pick areas.

Proper slotting of high velocity SKUs can significantly reduce pick

A combination of processes will provide the greatest benefit to warehouse operations travel time as well as minimise pickline congestion, thus making pickers more able to fulfil orders quickly.

Slotting tasks can also be integrated with other warehousing tasks using a warehouse management tool to ensure that re-slotting processes do not disrupt operations.

When integrated with a workforce management system, the expected savings and Return on Investment

(ROI) can be calculated prior to accepting a slotting plan, which will let warehouse managers quickly determine whether that particular plan will be effective.

Today, no one approach will singlehandedly increase productivity. But a coordinated plan to implement a combination of the above processes will provide the greatest benefit to warehouse operations.

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Procurement

Outsourcing: The Benefits for Buyers & Suppliers

Procurement requires a great focus on cost saving, profit maximisation and compliance, and often good strategies can be the difference between a profitable company and a failed business Written by: Sergio Juarez Senior Vice President, Europe and Latin America, at Elemica

O u ts o u rc i ng : T he B enef i ts f o r B u y ers & S u ppl i ers

Some large organisations like Walmart and Amazon have made their purchasing strategies a competitive advantage. Procurement can be a very complex, time and labour-consuming operation in many of these large corporations.

As a way to reduce administrative and operational costs, many large and therefore cumbersome companies outsource its procurement operations rather than build its own procurement capabilities.

A third party procurement operation can leverage their economies of scale and has the experience and trained staff to cut costs and enhance efficiencies for their customers. Smaller companies that

‘A third party procurement operation can leverage their economies of scale and has the experience and trained staff to cut costs and enhance efficiencies for their customers’

have experienced growth spurts and have few internal purchasing resources are also outsourcing procurement to take advantage of external structures and expertise.

Others that do not have the market leverage to obtain good discounts or the expertise to find good suppliers or purchasing staff are turning to outsourcing procurement too.

Some of the benefits that can be gained from outsourcing procurement are: • Cost reduction, better compliance processes alignment • Cost per purchase is lower and more discount • Expert procurement professional at your fingertips • Improved communication between purchasing experts and suppliers when using a supply chain operating network.

• Globalisation capability benefits • More effective and profitable negotiations Statistics show that companies between $1 billion and $5 billion in revenue have the most to gain from outsourcing procurement because 23

Procurement they can focus more on their core competencies that lead to growth.

Companies in this range lack the scale to make significant headway by pooling their own spend across the business, but can outsource indirect categories to a vendor that can in turn bundle this spend with that of other companies to obtain favourable terms.

What to look for in an outsourcing company A thorough analysis is essential.

Companies must honestly determine

Sergio Juarez.

Senior VP, Europe and Latin America 24

November 2014

their current capabilities and what facets of procurement they will outsource. Will it be all procurement, just strategic sourcing or only the procurement of complex maintenance, repair and operations supplies?

As a first step, it is suggested that a business outsource some transactional procurement operations, typically non-critical indirect materials or services. Once these are in place and working well, other procurement operations can be added, like a full strategic sourcing process and procurement for a hand full of indirect categories.

Deciding to pursue procurement outsourcing means undertaking a formal process to select the right vendor. Understanding each service provider’s specific offerings and their value proposition in terms of potential savings and other benefits is needed.

When outsourcing procurement operations, often companies find the thought of losing control over dayto-day purchasing activities is hard, so be sure to select a reputable company that offers a measurable service level.

Check its references before contracting and manage the outsourcing procurement process

O u ts o u rc i ng : T he B enef i ts f o r B u y ers & S u ppl i ers

Make sure there is a contingency plan in place to continue delivering products and services during the transition from in-house to outsourcing procurement on a continual basis to ensure compliance to contracts. Make sure there is a contingency plan in place to continue delivering products and services during the transition from in-house to outsourcing procurement.

Have a detailed transition plan in operation prior to handing over the entire procurement operation ensures inventory levels don’t run too low or raw materials are available to production

demands for customer orders.

The Use of Technology in Procurement Outsourcing To ensure that management teams and the outsourcing organisation are communicating, companies need to use a supply chain operating network that facilitates collaboration and communication.

This gives businesses total control over their global supply chains 25

Procurement Capturing transaction data across all trading partners and translating it into actionable information is key to driving value out of the supply chain

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November 2014

O u ts o u rc i ng : T he B enef i ts f o r B u y ers & S u ppl i ers

‘Outsourcing procurement can be a much more efficient purchasing process with shorter cycle times which lower inventory levels while improving working capital’ through integrated messaging, applications, and analytics across a network of trading partners.

Capturing transaction data across all trading partners and translating it into actionable information is key to driving value out of the supply chain.

This powerful combination of capabilities transforms businesses from ordinary to extraordinary, enabling them to outpace their competition in an ever more volatile and complex marketplace.

Procurement & e-Sourcing tools are the category of software solutions that procurement outsources use to automate sourcing and procurement processes. These robust solutions make it easy to on-board suppliers, monitor and respond to compliance

regulations, eliminate manual processes, and cut operational costs.

Suppliers want to work with procurement outsourcing companies because it speeds up the sales process. Suppliers connected to the network receive more invitations from more prospective clients. Suppliers are quickly qualified, then rapidly on-boarded to begin working with buyers.

Outsourcing procurement can be a much more efficient purchasing process with shorter cycle times which lower inventory levels while improving working capital. This process not only helps you and your organisation to achieve hard cash savings but also has a significant and material impact in compliance and enables auditable processes.

The SCON also eliminates the possibility of miscommunication and ensures all trading partners are aligned and knowledgeable of each other’s activities. Best-in-class companies outsource procurement to a company that uses a state-ofthe-art Supply Chain Operating Network to connect and collaborate with buyers and suppliers to ultimately boost the bottom line.

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t e c h n olog y

Web3 W The World’s F Procureme W r i t t e n b y:

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October 2014

Wearable: First Wearable ent System Sam Jermy

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t e c h n olog y

WaxDigital, the UK-based eSourcing and P2P software company, has developed a Google Glass application for its web3 software platform, allowing anyone requisitioning or approving goods and services in a corporate organisation to do so using this wearable technology

The rise to prominence of mobile phone applications or ‘apps’ has been bubbling away for a while, but now there is a fresh new technological opportunity on the horizon.

Wearable technology is gradually emerging as a popular innovation on the market, alongside the much vaunted Internet of Things revolution.

This presents a fresh big opportunity for software businesses in general, and recently the world’s first 30

November 2014

procurement system was unveiled, dubbed Web3 wearable.

One of the things mobile technology has tried to address is the issue of accessibility when people are ‘out and about’ in their normal working lives, and it is Google Glass apps which companies such as WaxDigital believe will help crack the accessibility factor.

Director Daniel Ball of WaxDigital, said: “We run an innovation summit on a fairly regular basis, we did one

S atell i te N a v i gat i o n techn o l o g y

two months ago where we brought together procurement professionals and technology specialists and we took a look at various areas of how we think technologies are going to evolve in the course of the next 12 to 24 months, where the implications might be and the applications in our industry sector.

“We looked at how that influences our product road map, technology like IoT, wearables and search word were

key amongst those.

“It became quite apparent there was a big appetite to look at what wearable technology might bring to the party because that is something that obviously fits in with our process.

Now we have Web3 wearable ready for release into the market” Ball points out that most of the people who use their Web3 wearable system are not procurement professionals - they are chefs, 31

t e c h n olog y

Supermarket shopping could be far more intuitive managers, nurses; people that are not in the procurement profession but need to buy products and produce in the course of their daily jobs.

In order to do that they have to stop what it is they are doing, get online, build a requisition and send it to approval and so on. All of this uses up precious time that the modern professional simply does not possess anymore.

It is a somewhat disjointed process, and wearables has the capacity to make that a rather seamless art where you can very quickly and easily pull up a product on the Google Glass, add it to a shopping basket and carry on with your day without breaking away and trying to remember something you having to order when you do get back to your desk and pc.

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November 2014

Wax Digital’s Chief Technical Officer, Peter Kinder, said: “By the time Google Glass gets significant penetration in corporate environments it may be very different to the one we have got today.

But the work we do today positions us to be at the forefront as and when the wave hits it into general corporate life.

“In the future we see the technology going far beyond this current Web3

Wax Digital presents web3 on Google Glass

the W o rld ’ s F i rst W earable P r o c u re m ent S y ste m

‘We see a lot of applications for Glass starting to be created now because of the audio and visual capabilities it has’

example.

“We see a lot of applications for Glass starting to be created now because of the audio and visual capabilities it has. Obviously we’re seriously looking at the AppleWatch and seeing how that progresses too.

It’s a very exciting time to be involved in this industry sector.”

The technology could go far beyond the current procurement system wearable system. Such as live maintenance; engineers can relay back what they are seeing to the purchasing team to see what parts are needed in real-time. It could be a factory site tour so there is a visual record of what it is that the agent is seeing in a factory in Indonesia, for

The work WaxDigital already does integrates with Amazon and other third-party websites, meaning it has improved its search engine locally by a factor of 10.

But Bell and Kinder recognise the challenges that they face with being innovators of this futuristic and exciting 33

t e c h n olog y

‘Being available in the easiest way possible for users to consume, and the accessibility factor is key to seeing the wearable products such as Web3 thrive’

kind of technology. The culture of bring your own device (BYOD) inhibits tech advancements. For instance, it took a long time for most companies to provide employees with smartphones.

Bell said: “That is the main factor in play in regards to take-up. It’s how many people can actually access the hardware and how big an audience you can get. In the meantime we can deliver a lot of learning and advancements to users on the existing

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November 2014

technologies but also the learnings we do into the slightly more futuristic tech in that area.

“It won’t happen overnight, as a software developer and innovator it is up to us to be at the forefront of new technological innovations. P2P is all about user adoption, our system is used more than any other in the organisation. Being able to give them the easiest possible experience that intrudes the least is important.”

Being available in the easiest way possible for users to consume, and the accessibility factor is key to seeing the wearable products such as Web3 thrive. Although there is a slightly more inherent resistance to wearable technology compared to IoT, it is heavily speculated to see a convergence of the two in the coming months and years.

For now, Web3 wearable can bask in the achievement of being the world’s very first Wearable Procurement System.

The Google Glass app, from Wax Digital, is available from November.

Please visit: http:// www.waxdigital.com/

S atell i te N a v i gat i o n techn o l o g y

It is crucial how many people can actually access the hardware and how big an audience you can get

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TOP 10

Top10

Logistics Brands In this list, we take into account the usual vital stats of staffing levels and financial report information, but ultimately it is the companies which has the most recognisable ‘brand’ globally Written by: Sam Jermy

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top 1 0

09

Panalpina

The Panalpina Group operates a global network with some 500 offices in more than 70 countries, and it works with partner companies in a further 90 countries. It employs over 16,000 people worldwide who deliver a comprehensive service of logistics, air freight and ocean freight.

10

www.panalpina.com

C.H Robinson

CH Robinson Worldwide was founded by Charles Henry Robinson in 1905 and the third party logistics firm now has nearly 12,000 staff and a revenue of ÂŁ8.1 billion. But the big hitters above it with their more well-known brands, and the fact CH Robinson has a ÂŁ535 million debt burden, prevents CH Robinson from breaking further into the top ten. www.chrobinson.com

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November 2014

L o g i st i cs brands

07

UPS

Founded in 1907 as a messenger company in the United States, UPS has grown into a multibillion-dollar corporation by clearly focusing on the goal of enabling commerce around the globe. An impressive ÂŁ33.09 billion (2012) revenue suggests UPS can make gains up the list soon. www.ups.com

08

Nippon Express

Japanese logistical service provider, Nippon was created back in 1937 and it has not looked back since and takes eighth place here.

With a revenue of ÂŁ10.58 billion more than holds its own in terms of global logistics brands. www.nipponexpress.com

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top 1 0

05

06

The Maersk Group has five core businesses which include Maersk Line, APM Terminals, Maersk Oil, Maersk Drilling and Services & Other Shipping. The last business area is comprised of Maersk Supply Service, Maersk Tankers, Damco and Svitzer. The Group employs approximately 89,000 people, operates in 135 countries and is headquartered in Copenhagen, Denmark. AP MollerMaersk delivered a profit of ÂŁ2.32 billion in the year ending 2013.

SNCF Geodis

SNCF GEODIS is a European transport and logistics operator with global reach. By becoming part of the transport and logistics branch of SNCF, Geodis has been able to target leading international customers. With ÂŁ 4.59 billion revenue, it is guaranteed a mid-table spot. www.geodis.fr

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A.P. MollerMaersk

November 2014

www.maersk.com

l o g i st i cs brands

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04

CEVA Logistics

CEVA Logistics is one of the world’s leading non-asset based supply chain management companies and it recorded a 6 percent jump in revenue in quarter two of 2014 to £1.2 billion. It employs over 44,000 people and runs a global network with facilities in more than 170 countries. For the year ending 31 December 2013, the company reported revenues of £5.19 billion.

FedEx

Another strong brand that has become synonymous even with people far detached from logistics.

Forever immortalised in the critically acclaimed box office film Cast Away, the main character played by Tom Hanks is actually a FedEx employee and the company features heavily throughout. This is just one example where FedEx went the extra mile to enhance its brand. Quarter one operating income in 2014 was also up 24 percent from last year, at £601 million. www.fedex.com

www.cevalogistics.com 41

l o g i st i cs brands

02

Kuehne + Nagel

With over 63,000 employees in over 100 countries, the Kuehne + Nagel Group is the largest ocean freight forwarding operation handling more than three million containers a year. As one of the world’s leading logistics brands it has been handed a very solid

second position. KH is also the second largest global air cargo forwarder, number two in global contract logistics and has a clear focus on providing IT-based integrated logistics solutions. With ÂŁ3.97 billion gross profit, it also has a healthy bank balance. www.kn-portal.com

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top 1 0

01

DHL Supply Chain

Under the umbrella of German parent company Deutsche Post, DHL Supply Chain is by far the largest logistician in the world right now. The wider group continued to boost revenues and earnings in the first quarter of 2014. At nearly £10.73 billion, revenues generated in the first three months of the current year rose more than one percent above the previous year’s level.

DHL Supply Chain alone generated £11.31 billion revenue in the year ending 2012, equating to an eight percent market share in logistics. The distinctive yellow branded vans are instantly recognisable throughout Europe in particular, and in North American the Exel Brand was retained.

Nothing seems to be stopping DHL Supply Chain and the overall logistics brand is the undefeated number one on our list. www.dhl.com

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November 2014

l o g i st i cs brands

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Office Depot Europe Looks to Serve the Customer of Tomorrow in Mega Transformation Effort The supply chain of the office supplies and services provider is undergoing change which will see it convert to a pan-European channel-focused operation Written by: Tom Wadlow Produced by: Craig Daniels

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o f f i c e de p o t

Willem Vesters, Director Supply Chain Planning & Inventory Europe

O HQ Venlo

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November 2014

ffice Depot is in the process of radically transforming its European supply chain operations with a shift away from countryspecific models to a continent-wide system which will ultimately improve service delivery for customers.

Having witnessed extreme peaks and troughs in sales and the evolution of Amazon-style competition over the past decade, the overhaul programme is optimising the stock management and delivery processes across its 13 European countries, 16 distribution centres and 110,000 SKUs of stocked product.

Office Depot Europe is the largest part of

e u r o pe

Racking at one of the distribution centres

the International Division of Office Depot Inc, a merger of Office Depot and OfficeMax which is now worth $17 billion and present in 59 countries.

Charged with ensuring $2.7 billion of annual office product sales reach the company’s 1.6 million European customers is Willem Vesters, Director Supply Chain Planning & Inventory Europe.

He said: “When I started three years ago our inventory levels were too high and the company was not sure what was leading to this. The first objective was thus very clear – the inventory had to come down so we could invest the freed up cash flow.”

“The first objective was thus very clear – the inventory had to come down so we could invest the freed up cash flow” – Willem Vesters, Director Supply Chain Planning & Inventory Europe

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The Office Depot product range

o f f i c e de p o t

e u r o pe

Transforming into tomorrow In the first year inventory levels came down by 20 percent, allowing Office Depot Europe to focus on the more fundamental process and system changes which has seen the supply chain convert to a channel-driven operation.

Its main channels comprise retail, contract and direct, with major clients including Marks & Spencer, Lufthansa, Siemens, Heineken and Carlsberg. The company’s retail presence is in France and Sweden with 60 and 40 stores respectively.

New methods have already been put into place across Office Depot’s German-speaking countries (Germany, Austria, Switzerland, Netherlands and Belgium) and many valuable lessons have been taken on board.

Vesters said: “We have seen positive effects but have also learned a huge amount based on the challenges faced. For example we know how many sales to expect when we send out a catalogue based on historical figures, but we didn’t know what drove those sales, whether it was the adverts in there, the sorts of products or

New branded delivery boxes

“If you have visibility you can truly optimise and compete with the smaller leaner operations that are out there on a local scale” – Willem Vesters w w w. o f f i c e d e p o t . e u

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o f f i c e de p o t

Picking isle

the layout.”

“This came down to a simple question of information – all the data was there but the right information wasn’t created out of it. With these lessons learned we are going to apply it on the channel structure across Europe.”

Vesters hopes to receive the green light from the appropriate boards and works councils by the turn of the year, with structures in place 6-9 months after this which will then be followed by a programme of continuous improvement lasting at least another year.

“It is a time consuming process because although the questions being asked are simple and fundamental, alignment of processes on this The Cardboard Box Company Ltd

Contract Logistics Kuehne + Nagel is one of the world’s leading contract logistics service providers, with more than 7 million square meters ( 75 million square feet ) of warehouse and logistics space under management across more than 65 countries. www.kuehne-nagel.com

e u r o pe

scale is not easy,” Vesters added.

On the ground Office Depot Europe’s supply chain is already being transformed on the ground in light of the new strategy.

The company has closed a warehouse in the UK and is upgrading others to meet contemporary demand, which sees customers placing smaller orders in higher frequencies, removing the need for large amounts of huge bulk storage.

“We are going to completely visualise our inventory and make it traceable. Do we partially ship from our own stock, do we source from elsewhere? These are decisions we need to be able to make based on correct information,” Vesters said.

Because Office Depot is built on several acquisitions made across Europe, it already has a number of legacy and ERP systems generating information at its sites.

Vesters’ aim is to place a technical layer on top of these existing mechanisms which will connect various functions and information points together, allowing him to answer the question of where and how to source orders.

The company is looking at solutions from the likes of Llamasoft, Barloworld and Manhattan.

“It allows us to find the lowest cost and most efficient route to the customer. If you have visibility you can truly optimise and compete with the smaller leaner operations that are out there on a

Transporter

Conveyer belt

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o f f i c e de p o t

Green products

“In three years I would like to see us be able to fulfil the demands of ‘the future’s customer’” – Willem Vesters

local scale,” Vesters said.

Office Depot is also looking to collaborate on a more detailed level with fewer vendors on a panEuropean scale. Currently 90 percent of products are sourced from European vendors with 10 percent from operators in the Far East.

On the transport side, the company will evaluate its three current models of fully 54

November 2014

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outsourced (e.g. Germany), fully in-house (e.g.

France) and hybrid (e.g. UK), before deciding on a continent-wide strategy to fill consumer demands that now stretch beyond that of 24hour delivery.

Company Information Industry

Office supplies

Looking ahead Where Office Depot can move ahead of its industry competition is in its fulfilment of the ever-growing desire for sustainably-sourced products.

It is using its huge global network and investing heavily in green product lines with tracking and traceability functions, relaying to the customer exactly what is in their purchase and where it has come from.

The company is also investing in finding the next generation of supply chain professionals which it can gear towards its new channelbased European model.

Vesters concluded: “In the Netherlands we engage closely with university students and these kinds of initiatives are extremely important for us in the next year. We will be investing a lot in training our own people to get them up to speed again as well.

“In three years I would like to see us be able to fulfil the demands of ‘the future’s customer’.

We recently watched a video of what the typical future customer looks like – we need to be able to serve them in the most cost-effective and efficient way possible.”

headquarters

Netherlands f o u n ded

1986 e m p l o y ee s

8,000 revenue

$2.7 billion Europe sales p r od u c t s / services

Office supplies

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Confectionary Holding

Continuously Improving Operations Written by: Sam Jermy Produced by: Craig Daniels

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C O N F E C T I O N A RY H O L D I N G

The Spanish sweet and chocolate producer has a near 300-year history, but is still meticulously enhancing supply chain operations while developing new products Factory 1 and Central Offices in Jijona Spain

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C

onfectionary Holding is one of the oldest Spanish companies in existence today, but is experiencing an important evolution stage and is looking forward to increasing its global market penetration.

The organisation has a presence in more than 50 countries and many layers of history, having been formed in 1725, and it now takes the form of a conglomerate comprised of seven companies.

Two of these manage all manufacturing and commercialising activities; two manage the raw materials such as almonds; another oversees the management of the brands

EUROPE

and its evolution and the last two in the group manage the financial aspects and real estate assets such as factory buildings.

Andrés Cortijos, Deputy General Manager & Value Chain Director, said: “Confectionary Holding is one of the most globally prominent Spanish groups in the confectionery industry.

We are heavily involved in the Spanish and South American industry and our main markets are Europe, South America and the United States, with a presence in Asia and Australia too.

“We are in an important growth phase, one of our most important projects is

Alcaudete Factory chocolates

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From the finest ingredients, Delightful packaging Nekicesa Packaging has 65 years of experience in the folding carton sector and we constantly strive to deliver the best quality, a high level performance of service and an outstanding capacity of innovation to meet the most demanding client needs.

C O N F E C T I O N A RY H O L D I N G

EUROPE

organising corporate online sales so we are building a corporate website.

“We produce an internal product portfolio showcasing Turron, a sweet made of almonds. We also produce chocolate bars, marzipans, bon-bons, nougats and traditional Spanish sweets that we commercialise mainly at Christmas; it is a wide portfolio.”

Confectionary Holding’s facilities are comprised of two factories in Spain; one in Alicante where it produces the products based on almonds and another one in the south of Spain, Alcaudete (Jaén), where it produces chocolate and other Spanish specialities. As part of its vertical integration process it also has facilities in Chile and Morocco where it sources raw materials such as the almonds.

SUPPLIER PROFILE

NEKICESA PACKAGING SL

Nekicesa Packaging is a graphic arts company that specializes in folding boxes, leaflets and adhesive labels. The company has operated in the packaging sector since 1965 and has a global capacity of 1.2 billion units, supplying into multinational groups all over Europe.

Innovation is our company’s philosophy and we constantly strive to develop our activity through our innovation management team, which provides us with competitive advantages which, in turn, allow us to maintain a relevant position in the sector.

Website: www.nekicesa.com

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Almonds. Our life since 1923.

Our selected almonds are an essential ingredient for the confectionery and bakery industries all over the world.

Natural whole, blanched and roasted almonds. Split, sliced, slivered and diced almonds. Roasted almond paste.

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C O N F E C T I O N A RY H O L D I N G Competitive agility The company has around 180 full-time employees but due to the nature of the business, increases this number seasonally on some of its more popular product lines. Christmas for example is a peak time for Confectionary Holding and it needs a quick response to the market, so it saw an obligation to integrate suppliers and minimise time. It is becoming a more aligned and agile supply chain.

With nearly five million kilograms worth of confectionary being produced each year, and having created almond products since 1725, it can be a mammoth task to manage.

Cortijos said: “I have been with the company since 2008, where I was the Operations and Supply Chain Manager. But we started to change the group two years ago, trying to integrate our supply chain more to our market and our customers and improve the value chain. “Due to this process I became The Deputy General Manager & Value Chain Director, supervising the whole Value Chain, not just the operational areas but also procurement, manufacturing and logistics including the commercial areas. “We have a close relationship with our suppliers, most of them are happy to participate and provide support. We have developed extensive relationships based on collaboration, integrating systems, sharing philosophy, promoting saving incentives and

EUROPE

5 million kilograms worth of confectionary is produced every year

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C O N F E C T I O N A RY H O L D I N G

Moroccan Almonds

“We think that China is an important international market in terms of our confectionery products. We see it representing one of our more important challenges in terms of market opportunity in the coming years” – Andrés Cortijos

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November 2014

just trying to create win-win relationships.”

Anticipating consumer demand and the way Confectionary Holding manages this demand is linked to capacity. With good scheduling it strives to develop processes and has trained middle management employees on how to make company factories more flexible and productive.

The ability to retain agility in an ever shifting working environment, in terms of level and type

EUROPE

of confectionary produced and the number of workers on different sections, is crucial for the organisation. All seasonal workers are trained during off-peak times to ensure they understand new processes and methodologies to achieve standardisation across the workforce.

This proactive and agile approach to business extends to transport, where products are shipped by vessels in containers, to destinations across the globe. In terms of transportation in other continents it depends on the kind of resources available and the penetration of the product. In some countries it outsources to distributors, in stronger countries it has staff there who work closely to store and commercialise its products.

Brand strengthening The next few years will see the firm seek further penetration into emerging markets, working to solidify relationships with customers and suppliers alike, and there is even the intention to expand the portfolio and bring new confectionery into its product range.

Cortijos said: “We have a mainly low presence in Asian countries, and we think that China is an important international market in terms of our confectionery products. We see it representing one of our more important challenges in terms of market opportunity in the coming years. At the same time we will be working to consolidate our presence in existing markets.

“We are going to bring fresh products to

Key Personnel

Andrés Cortijos Deputy General Manager & Value Chain Director Andrés Cortijos has a track record of more than 10 years in managerial positions in different companies / industries in which he has been responsible for different operative projects / areas. Since 2008 he has been part of Confectionary Holding S.L, Spanish Agri-Food Group.

He currently leads the industrial divisions for encouraging growth through an aligned and integrated value chain, focused on values such as; customer added value, sustainability, continuous improvement, teamwork and result orientation.

In addition, Andrés Cortijos is MSc Industrial Engineer, he holds an extensive education, with masters and International Certifications related to Lean, Supply Chain, Operations and Business Administration. He is also a member of the CSCMP Spanish Cabinet (Supply Chain Leading Organization in USA), speaker and participant in different forums on Strategy, Supply Chain, Operations and FMCG.

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C O N F E C T I O N A RY H O L D I N G

CH Store

Stores reflect the quailty of the company’s products

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our range in the near future. During the last decade we have developed capabilities to be a diverse manufacturer inside the confectionery industry, acquiring the capabilities in practically all the facets of the industry.

“Now we are trying to create new products within these lines with new ingredients, packaging and so on but always our first step is in the interests of our customers, because without them we would not be here. We can see and live the evolution that we are currently experiencing as a group, and that is something that still excites us even being a company with such a long and illustrious history.”

The close relationship Confectionary Holding has with its customers, distributors and suppliers is yet another positive feature of the group. It relies on highly trained professionals

EUROPE

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Spain FOUNDED

1725 EMPLOYEES

in the confectionary industry who know the needs of the customers and they use the feedback to lead on its innovations process.

In terms of volume its main ingredients are almonds, chocolate and sugar. Although these are highly unlikely to change, the company is perfecting brand new produce in partnership with educational and R&D institutes where they both strive to develop unique confectionary.

“I think this value chain integration is going to position us as a global confectionery group and our idea is to be more international. We’ll try to develop our capabilities of introducing ourselves to a new market, offering local products to a local flavour and meeting differing demands of the customers.” Cortijos concluded.

“We have a lot of potential throughout the world.”

350 REVENUE

€45-50m PRODUCTS/ SERVICES

Sweets and confectionary

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Enkay Express invests to strengthen MiddleEastern services Written by: Joel Levy Produced by: Simon Creevey

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Lo g i s t i c a

A new $3m facility in the Jebel Ali free zone is the company’s latest bid to expand its offering and take advantage of the booming MiddleEastern market

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November 2014

E

nkay Express is investing in the booming Middle-East, with more than $3 million spent on a new 13,000 square metre (sqm) facility in Jebel Ali that expands its services with a fully racked, temperature-controlled warehouse offering full pick-and-pack services.

Located in the Jebel Ali free zone in the UAE, the land now houses 5,000 sqm both of temperaturecontrolled warehousing and open-yard storage, and represents a move that Regional General Manager Andrew Granger is aware will greatly benefit the company’s many clients in diverse industries.

He said: “Jebel Ali is in the free zone, which

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The warehouse is fully racked and temperature regulated

allows us to import on behalf of our customers and store in our warehouse. In turn they do not pay any taxes until it leaves the warehouse and Jebel Ali. So we can import the traffic, store it and the customer doesn’t need to pay the duties until they are ready to receive the goods.”

Investing in this facility is a shrewd decision that plays to the company’s strengths and places it perfectly to take advantage of the ongoing infrastructure and manufacturing investment in the region, with billions being spent on railways, power plants, petrochemicals and pharmaceuticals in the Middle-East.

With its presence in the Middle-East, including

13,000

square metre warehouse offers full pick-andpack services

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e n k ay e x p r e s s Lo g i s t i c a offices in Kuwait and Bahrain, Enkay Express is sure to be at the centre of logistics in the region as this growth continues.

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November 2014

Respected name Experience places Enkay Express at the forefront of the industry, with the company having traded for more than 40 years, during which it has built up an outstanding reputation and customer-base to become a dominant player in the region.

Such is its status, that following a buyout by the Logistica group in 2008, it was an obvious decision for the new parent company to retain the Enkay name that is so synonymous with quality.

“Logistica did this because it’s so well known in Europe and the Middle-East, particularly with airlines, shipping lines, and more importantly with customers and the ports. They have known the Enkay name for over 30 years and it holds a reputation,” Granger explained.

A truly global player, Enkay Express Logistica boasts more than 220 offices worldwide, spread across all continents, affording it both global connections and, importantly, regional knowledge that enables tailored solutions ideal to its customers’ unique needs.

Competitive advantage In the massively competitive Middle-East, where thousands of rival logistics companies are present, it is crucial to differentiate yourself, and for Granger, what Enkay Express excels at is this

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Internal and external training programmes have improved the company’s service to its customers

ability to tailor logistics solutions for clients.

“We provide a global logistics service, whether it be by air, sea, truck or CPL, 4PL warehousing.

So we can provide a service for any global requirements that our customers have, moving their traffic from anywhere in the world to anywhere in the world,” said Granger.

“I think our biggest selling point and the ethos that we instil, is that we listen to customers’ requirements. We try and find the right solution for them rather than try to sell them everything that we have when they only really need a small part of that. So we listen and find the best logistical practice for them that suits their particular needs.

“If the customer has any problems or where

“We try and find the right solution for them rather than try to sell them everything that we have when they only really need a small part of that” – Andrew Granger

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e n k ay e x p r e s s Lo g i s t i c a

Stacking in the

they require solutions, we provide an in-depth service. We do due diligence and go back and find out the exact logistical requirements.”

This approach proves invaluable to clients such as high-end fashion chain Challoub, for whom Enkay provides a comprehensive distribution service in the Middle-East.

Other familiar clients from this sector, along with some of the largest players in the energy, pharmaceutical, warehousing and petrochemical markets are Enkay’s current focus areas for growth, with a large majority of its current business coming from China, followed by Europe.

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delivery for well-known customers including Deutsche Babcock, Hitachi, Chemlink, Daewoo and Ircon is testament to its credentials.

Agility Where many struggled during the global economic downturn, Enkay was able to turn crisis into opportunity with sound strategic moves and investment, including the restructuring of the company’s management, which has allowed it to become more agile and deliver faster lead times.

Granger said: “We have quite a small management structure that allows us to make quick and exact decisions. We are all very aware of the finances of the company and what we do in the way of PML and GP and net sales. Everybody has their finger on the pulse and they are available immediately to make a decision. This makes a great difference to our business.�

Such an approach finds Enkay in a strong financial position, free from debt and able to make the investments as seen in Jebel Ali. The company is set to make a similar financial input into customer-built warehouses on 20,000 sqm of land it already owns in Bahrain, in the second or third quarter of 2015.

Staff Underpinning the strong performance is a team exceeding 300 in the Middle-East with far greater numbers across the global network, and the long-termism promoted by an attractive

Key Personnel

Andrew Granger, Regional General Manager

Logistica facility

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Lo g i s t i c a

Dedicated staff outside the warehouse

“If the investment and growth continues in the region…there is no reason why we can’t build and generate more business” – Andrew Granger

working environment, incentivisation and internal and external training, has proven of benefit to customers, with knowledgeable staff building up strong relationships with the customers they serve.

Granger said: “We visit our major customers about once every six weeks and have dedicated customer service staff within the office, so when there is an issue or query, they will have a dedicated member of staff to speak to who understands their company and its requirements.”

Future Further growth and prosperity for Enkay Express is well within reach, with the region enjoying a similar outlook, and Granger foresees a bright

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Company Information Industry

Supply Chain headquarters

State of Kuwait f o u n ded

1981 e m p l o y ee s

300+ (at Enkay)

future for the company.

He concluded: “With the customers that we have, and the service we provide, we feel that we are number one. We have the solutions in-hand to meet their requirements. Most in this industry want to be the biggest, but biggest isn’t always best. We believe we provide a service to our customers that is second to none, and we feel we are already number one through the customers that we interact with on a daily basis.

“If the investment and growth continues in the region, particularly for Dubai, and Dubai being used as a hub through the new airports and seaports, there is no reason why we can’t build and generate more business.”

revenue

Not disclosed p r od u c t s / services

Logistics

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Oriflame Cosmetics

integrates a sustainable focus into supply chain innovation Written by: Sam Jermy Produced by: Craig Daniels

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O r i f l a m e Co s m e t i c s

The providers of high-quality nature inspired innovative beauty products is about to open new facilities in Russia, at the same time continuing its excellent record of ethical procurement

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O

riflame Cosmetics is well positioned to capture future growth opportunities after making its biggest ever supply chain investment, whilst achieving an excellent level of ethical procurement.

Operating in more than 60 countries, it has a wide portfolio of approximately 1,000 products in categories including skincare, colour cosmetics, fragrances, personal & haircare and accessories marketed through around three million independent consultants around the world, generating annual sales of around â‚Ź1.4 billion.

With a strong presence in Russia and other major CIS countries; the region makes up approximately 50 percent of yearly group sales, the company is establishing more robust foundations by building a new factory near

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Moscow. This is due for completion very soon.

Originating from Sweden in 1967 and founded by brothers Jonas af Jochnick and Robert af Jochnick, Oriflame has subsequently expanded its geographical footprint and currently operates in more than 60 markets split into four Global Business Areas – CIS, Europe, Latin America and Turkey, Africa & Asia.

Today, the company has seven factories with the one under construction in Moscow and five Group Distribution Centres (GDC’s) as part of the company’s supply chain infrastructure.

Oriflame products

Russian and CIS strength As well as these facilities in Poland, Sweden, Russia, China, Hungary, Ukraine, India, Portugal to name but a few, the cosmetics giant also has more than 100 stockholding points, some of which are central market warehouses. It also has smaller stockholding points around the world.

Gökhan Çakmak, Global Logistics Director at Oriflame, said: “Oriflame is an international beauty company, and we were founded on the principle of not testing products on animals. It was one of the best pioneering decisions made in my opinion.

“We have a rich and long heritage, with a strong commitment to be responsible and ethical. Building on this philosophy, we have cemented our position in ethical and responsible procurement by applying a number of initiatives.

“We are looking to tap into new markets and

are worldclass

1,000

Number of products in the company’s portfolio

corporate.oriflame.com

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Innovation. Reliability. Efficency.

SSI Sch채fer shapes the future of logistics.

www.ssi-schaefer.com

O r i f l a m e Co s m e t i c s

sect o r

on average we introduce several hundred new products each and every year. Our in-house production of approximately 60 percent of products, is considered a core competency and it is expected to increase over time. The rest is externally produced by third-party suppliers.”

Oriflame has two global hubs near its big manufacturing points in Russia and Poland where it then distributes to other countries and warehouses. Oriflame actively consolidates local markets distributions into GDCs to reduce costs, increase productivity, improve efficiency and inventory levels. Group logistics operations are improved by re-structuring the GDCs under the newly created Global Logistics organisation to effectuate greater global synergies. The new Moscow factory and GDC facilities have

supplier profile

Oriflame is a leading beauty company

SSI Schafer

SSI Schäfer is one of the world’s leading suppliers and producers of warehousing equipment and logistics systems. Our solutions range from the conception of warehouses to the implementation of complex and intersectoral logistics projects as general contractor. Depending on size and complexity, every system is designed to meet customer and product requirements and to accommodate future growth. Our portfolio ranges from initial consultation and planning to production and successful start-up to permanent system maintenance.

Website: www.ssi-schaefer.com

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Matthew.mould@bgm.uk.com 0113 250 8585 www.bgm.uk.com

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BGM is a Logistics Consultancy dedicated to improving services and reducing costs on behalf of its clients.

Parcel and Logistics subsidiaries of Austrian Post Group: Germany: trans-o-flex Schnell-Lieferdienst GmbH, Slovakia: Slovak Parcel Service s.r.o. / IN TIME s.r.o., Hungary: trans-o-flex Hungary Kft., Croatia: Overseas Express d.o.o., Bosnia: 24VIP Logistic Services d.o.o., Serbia: City Express Serbia d.o.o., Montenegro: City Express Montenegro d.o.o., Turkey: Aras Kargo a.s.

O r i f l a m e Co s m e t i c s

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been built according to highest environmental standards and green building certifications.

The semi-automated lines in the GDCs also paved the way for a more seamless process which has improved accuracy and productivity significantly, while substantially decreased inventory as a result of advanced planning systems. Delivery times and quantities are improved, and collaboration in the planning process within the supply chain is strengthened.

Sustainable ethos The changing international trade regulations and restrictions such as transit times and border issues are subjects impacting entire supply chain velocity. Those are

The semi-automated lines in the GDCs also paved the way for a more seamless process

Moscow new GDC and Manufacturing facility

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O r i f l a m e Co s m e t i c s

“I would highlight demand, distances, documentation and diversity as challenges due to our expansion...”

– Gökhan Çakmak, Global Logistics Director

challenges that Oriflame constantly faces. Çakmak said: “Regarding the challenges I would highlight demand, distances, documentation and diversity as challenges due to our expansion and geographical coverage. The company’s significant presence in developing countries means dealing with the infrastructure is often very difficult and differing standards.

“Our motto in Global Operation is to deliver our promises to our customers. By achieving

Skin care production and (right) related products

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these promises going forward we will be much more sustainable, cost effective and prosperous.

Oriflame’s sustainability strategy defines three key areas for the company’s efforts; to create opportunities to improve people’s lives; bring beauty and wellbeing through responsible products and drive environmental sustainability.”

Paper is Oriflame’s primary raw material used primarily in catalogues and packaging.

The company aims to source 100 percent of

50%

The company’s carbon emissions reduction target by 2020

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87

O r i f l a m e Co s m e t i c s

Irek Laski, GDC Warsaw Director

paper through credible sustainable sources or recycled material. In 2013 it achieved 96 percent compliance according to the Rainforest Alliance, the global conservation organisation.

The firm also works with the World Wide Fund for Nature (WWF) and has a total score of 11 out of 12 in purchasing sustainable palm-oil.

Oriflame will continue to pursue green building certifications in all of its future constructions. “Our commitment in logistics is to reduce carbon emissions by 50 percent by 2020 so we have a long journey. But since 2010, carbon emissions have decreased by 30 percent primarily thanks to doubled load utilisation in both

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sea containers and trucks by using various ways of loading efficiencies. On October 15th 2014 Oriflame Cosmetics was awarded with a position on The A List: The CDP Climate Performance Leadership Index 2014 for its actions to reduce carbon emissions and mitigate the business risks of climate change among 2000 listed companies.

So we are also pleased, but still we have a way to go to reach our 2020 goal and have other targets of where we want to be.” Çakmak said.

Distinctive approach While some cosmetic companies focus on the retail environment to reach their consumers, the Oriflame founders chose to take an alternative route; the direct sales model. The business model builds on the desire and ambition of people to run their own business, by grasping the Oriflame business opportunity. Çakmak said: “Oriflame aims to source more products in its main markets to align the supply closer to the demand. It is an important step in the company’s ambition to improve operational efficiency. Asia is very important for us as well as the Latin American countries where we have great growth potential.

“The world is changing very fast. The big fish will not eat the small fish anymore. It will be the fast eating the slow. Oriflame aims to source as close to the market as possible to shorten the supply chain and improve procurement costs. It also reduces greenhouse

Key Personnel

Gökhan Çakmak Global Logistics Director Gökhan Çakmak currently is the Global Logistics Director at Oriflame Cosmetics.

He joined Oriflame Cosmetics in the beginning of 2008 as the Logistics Development Manager and after a short time in August 2008 took over the global operational responsibility of endto-end worldwide logistics activities.

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“Oriflame aims to source as close to the market as possible to shorten the supply chain... reducing greenhouse gas emissions and transportation costs”

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gas emissions and transportation costs.

Near sourcing will help increase our agility too. In logistics it is our strategic vision to outsource warehousing and transportation.”

He also states the company believes in continuous education to improve employees’ skills by internal and external training.

“We try to empower people to share their expertise to others by leading specific in-house training. This includes project management, supply chain and procurement academy.” added Çakmak.

Employees share experiences to give better visibility of each other’s jobs to

E u r o pe

Company Information Industry

Supply Chain headquarters

Schaffhausen, Switzerland f o u n ded

1967 e m p l o y ee s

7300 GDC Warsaw semi-automated pick & pack line revenue

encourage better collaboration.

The supply chain academy programme includes sourcing, manufacturing and logistics, and it continues to grow across management levels around the world through ongoing fine-tuning and development.

During the next years Oriflame will continue to strengthen its customer experience and supply chain is a major contributor to guarantee the success. “In order to achieve our Global Operations motto of ‘to deliver our promise to our customers’ we will be more agile, faster, and will listen to our customers’ needs while staying cost effective and sustainable.” concluded Çakmak.

€1.4 billion (Approx.) p r od u c t s / services

Cosmetics, beauty products

corporate.oriflame.com

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Corporativo UNNE: Distance and cost reduction

UNNE’s key factor for growth has been the ambition to broaden their business units, thus improving every single step to accomplish flawless logistics

Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejón Interviewee: Noe Paredes, CEO

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orporativo UNNE hails back to 1972, with the opening of a building materials warehouse serving mostly all of the companies involved in PEMEX Miguel Hidalgo refinery’s construction, in the city of Tula, Hidalgo.

Soon after the warehouse opens, the materials’ freight operation began, as did other services during the next decades. Up until today the corporation is segmented in four large business units:

Dicomex, another business unit of Corporativo UNNE

“We are consolidating our existing business lines by creating new business opportunities for each” – Noe Paredes, CEO, Corporativo UNNE

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- Cargo and logistics - Truck maintenance, tire retreading - Fuel and power supply for different trades - Mining (extraction, shipment and sales) UNNE’s entire operation involves a network comprised of local businesses, companies known nationwide and global corporations, enabling the company to bring goods from air, land and sea into Mexico’s largest markets, making it seem like shipment’s distance and costs are being reduced.

“One of the facts I’m proudest of was the transition from being a family-run business into a fully-established company in order to partner with global corporations,” says Noe Paredes, CEO for UNNE, and part of the front office since 1992 after completing his education in Business Management, which were followed by a Top Management course.

L AT I N A M E R I C A

Key People

Noe Paredes CEO of Corporativo UNNE

Tire retreading

In recent years, Mexican companies able to keep a sustained growth rate, partnerships and engage in diversification are not a product of casualty. These businesses have been through ups, downs and the unexpected changes of fluctuating economies proper of still-underdevelopment countries: from well-documented booms in certain trades including optimist w w w. u n n e . c o m . m x

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C O R P O R AT I V O U N N E growth and progress forecasts to crisis, currency devaluation and markets’ change of pace. It takes more than just will power or healthy fund reserves for some companies to survive, but traits such as flexibility, adaptation and a cunning ability to spot and take part in new business opportunities are also required.

Services in mines

Most of these qualities have shaped Corporativo UNNE, starting as a retail outlet for construction materials; it didn’t take long for them to start transporting these goods to customers elsewhere and ending up as a very important logistics company in Mexico. “We recently built a terminal port in the state of Hidalgo, a transfer facility to products brought from cargo ports on their way towards large markets,” says the company’s CEO regarding Terminal Intermodal Logistica Hidalgo (TILH) logistics port, a facility to ease transit and

“We have had faithful suppliers from day one: they saw our birth, growth and development along with theirs” – Noe Paredes, CEO, Corporativo UNNE 96

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L AT I N A M E R I C A

paperwork for different products, including some whose origin or final destination is abroad.

Consolidation: base for growth UNNE’s continuous growth is not to be based merely on the acquisition of new units for their cargo services or diversifying into new, previously unexplored ventures, but much rather by focusing in every improvement possible for the existing business units and their procedures in order to bring them to fulfill their potential which, as a result, will naturally bring the need for new transport units as well as operative and office personnel. “We have a future project involving compressed natural gas (CNG), we have a housing construction project pending... we are consolidating the existing mining,

Mining solutions at Mina Xiteje

Competitive transportation

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construction, energy, cargo and logistics lines by creating new business opportunities for each,” says Paredes.

In fact, there’s also a project which will go beyond plain fuel vending, by obtaining energy from residues to be used for industrial or residential purposes. “The ongoing energy reform in Mexico will create new necessities not only in the energy sector, but in every industry sector in our country,” said Noe Paredes.

Tractor maintenance

Tank UNNE w w w. u n n e . c o m . m x

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C O R P O R AT I V O U N N E Leverage through partnerships

Dual unit from their transportation unit

As a way to gain competitiveness in Mexico, UNNE partnered with a global company to offer logistics services, this eased the link between cargo ports and large consumption markets (with Mexico City being, basically, the largest in the country) through terminal ports where train freight and land freight meet. “At the end of the day, the purpose is to simplify every procedure for our clients into cost-reducing volumes while having their products close to their marketplace... there lies our leverage,� says Paredes.

L AT I N A M E R I C A

Partners for a lifetime One of the most productive partnerships for UNNE in recent years is the one held with HPH (Hutchison Port Holdings), who performed a large investment in the TILH terminal port project. There have been other strategic partners during the 40plus year operation; local land freight companies and banks have placed their trust and resources in UNNE’s hands. “We have had faithful suppliers from day one: they saw our birth, growth and development along with theirs’ in unique synergy,” said UNNE’s CEO.

Competitive human resource

At DICOMEX headquarters w w w. u n n e . c o m . m x

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Four business units of integral solutions

Sustainable energy as part of new ventures The ongoing problems of waste management and groundwater pollution are to be solved with residues being transformed into electric power. Other measure towards reduction of the corporation’s impact on the environment is the transition from diesel into CNG-fueled vehicles; part of UNNE’s companies’ vehicle fleet is being fueled by compressed natural gas already.

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Company Information

Networking for long run operations Paredes is positive that the best upcoming opportunities for the corporation will come through the logistics unit, which is to be strengthened and developed to its fullest potential. UNNE’s efforts have produced results as mid and long-term investments; each new venture is sometimes a preceding step towards a larger enterprise and there’s also the adaptation factor when the whole business spectrum outside the corporation is also changing. “During the last couple of years we have experienced delays in a new construction boom all over the country, which may seem to reset during the next two to five years,” says Paredes.

“A new construction boom over the country may seem to reset during the next two to five years”

INDUSTRY

Cargo / Logistics HEADQUARTERS

Tula, Hidalgo, México FOUNDED

1972 EMPLOYEES

1.200 REVENUE

US$900 million WEBSITE

www.unne.com.mx

– Noe Paredes, CEO, Corporativo UNNE

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Muskoka

Why Drive When

While the District of Muskoka was listed as a to its airport makes a strong case fo Written by: Kevin Smead

Pro

a Airport

n You Can Fly?

op 10 road trip destination by MSN this year, or taking to the skies instead.

oduced by: Daniel Snyder

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Muskoka Airport

Al Beacon of the Royal Canadian Legion, initiator of the Little Norway Memorial

By car, The District of Muskoka is a two-hour drive from Toronto.

With its idyllic scenery of majestic forests and vibrant lakes, Muskoka has been a tourist destination for more than 100 years. In both 2011 and 2012, Muskoka was recognized

by National Geographic Traveler as a top vacation destination. Just this year, it was named by MSN as one of the 10 greatest road trip destinations for the year.

While a road trip may be grand, the region boasts one of the best run airports in the country, which begs the question: Why drive when you can fly?

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The Muskoka Airport plays a major role in the area’s bustling tourism business, providing an accessible international hub for a range of aircraft in the private and commercial sectors.

“Up to 71% of our visitors that come through the airport are from the USA,” District Chair John Klinck explained. “Although the airport does not support scheduled airline services, each year there are about 700 jet movements and over 2,000 turboprop aircraft movements that contribute to the commercial traffic activities at the airport. About 57% of the airport’s traffic is from

canada

Lake Central Air Service aircraft maintenance

commercially registered aircraft.”

The airport also acts a home for a dozen aviation businesses, employing around 75 people and helping to drive the local economy.

As industry trends shift, Muskoka Airport sees continued success for several different reasons.

an increase in commercial aircraft usage,” Klinck said. “Although our traffic from piston aircraft tends to decline slightly each year, we also tend to see that drop replaced by commercial jet, turboprop, and helicopter traffic. As such, our aviation gasoline (avgas) sales volumes suffer, while our jet fuel A Focus on Commercial sales continue to improve.”

The airport has remained successful With increased commercial thanks to a change in the types of activity come increased revenues. aircraft that use the airport.

In addition, the businesses which “Generally, light or private aircraft operate at the airport are taking usage tends to be declining across advantage of this shift as well. the country, while in Muskoka we “Over the last decade, several tend to have been experiencing businesses located at the airport w w w. m u s k o k a a i r p o r t . c o m

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Lake CentraL air ServiCeS

AircrAft

•

Avionics

•

components

•

instruments

•

structures

since 1964, Lake Central Air Services has offered the

Rating

best selection of lake amphibian aircraft in north America.

• cessna citation 500 series aeroplanes

We also provide complete usA Approved certification on all aircraft work, including our top quality maintenance,

• DeHavilland DHc-6 series aeroplanes • Douglas Dc 3 turbo-propeller series aeroplanes

repair, rebuilding and restoration services.

• piston powered aeroplanes with mtoW of 5700 kg and below

approved Maintenance Organization 195-92

• turbo-propeller powered aeroplanes with mtoW of 5700 kg and below

1016 sabre Lane | muskoka Airport (cYQA) r.r.#1, Gravenhurst | ontario, cAnADA p1p 1r1 | 705-687-4343 | www.lakecentral.com

Professionalism with Confidence

Air Ambul Ance corpor Ate chArters sightseeing AeriAl photogrAphy

Our fleet of aircrafts are ready to go 24 hours a day, 7 days a week to meet your needs. Whether it is a short scenic tour or a longer flight that you require, we can accommodate with consistency and the highest level of professionalism.

Muskoka Airport (North End) 1165 Gravenhurst Parkway | Bracebridge Ontario | P1P-1R1 705-687-3811 | 877-687-3811 | www.northernairsolutions.com

Muskoka Airport

canada

have branched into servicing larger aircraft and commercial aircraft,” Klinck said. “These changes have opened up a host of opportunities for these businesses to expand, but also increase the burden on the airport to provide stronger taxiways and aprons, more reliable runway conditions in winter, and more space for their larger hangars. If we are to embrace the role of the airport to provide economic development for our municipality, then we need to adapt by providing the infrastructure, operating standards and development areas that these new businesses require.”

Expansion in All Areas This kind of expansion is something the airport is already actively pursuing and it hopes to work with funding agencies and the private sector in the near future in order to move forward. Plans are already in place to refurbish the airport’s 6000 ft. runway in 2015. A longer-term 20year plan is also being discussed.

“After identifying the anticipated improvements and their costs, the expenses are amortized over the 20 year period and a capital reserve

contribution is made out of the airport’s operating budget each year to ensure we have the appropriate funds to properly support the airports upkeep and growth,” Klinck said. “Those contributions have grown over the last decade from about $80,000 per year to $500,000 per year. However, this financial commitment ensures that the Muskoka Airport is able to continuously improve its operation.”

As Klinck notes, however, they aren’t at all ignoring the piston aircraft traffic and are working to keep it steady.

“Muskoka Airport hopes to retain a significant share of the piston aircraft traffic by continuing to market the Muskoka area as a premier tourist destination, and to continue providing a preferred location for cross-country training flight stops from out-of-town flight schools,” Klinck said. “This airport attracts a lot more itinerant piston aircraft traffic than any of the other nearby airports, but an opportunity to expand our local flight training services could be very beneficial.”

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Muskoka Airport

A Culture of Cooperation All told, the airport has only four full-time employees. The airport partners with Georgian College’s aviation management program to fill another spot. The full-time staff may seem small, but they’re highly trained in a variety of different fields, making each and every member invaluable.

“With such a wide variety of responsibilities at the airport, personnel need to possess a wide variety of skills and experience,” Klinck explains. “This variety makes the job interesting, but the main 110

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thing that attracts and retains employees is their love of aviation and the satisfaction that comes with contributing to a wellmanaged operation.”

The airport is also supported by District of Muskoka staff across all departments, from Public Works and Engineering to Finance and Legal. This is especially important since the airport must strike a balance between being a community service oriented organization, business, and industrial park. While this hasn’t always been easy, the airport is

canada

establishing a clear direction.

“We recently conducted reviews of many of our municipal services and are currently looking at creating an Airport Promotions and Partnership Committee,” Klinck said.

He also noted that with municipal elections soon taking place, the airport will soon be in a position to tackle various issues with a new District Council.

“Council and staff need to develop a new long term plan for the airport in 2015 in order to establish a clear and firm direction for the airport to follow that best serves the social and economic needs of the District of Muskoka,” he added.

The cooperation between the community and the airport is key, as the airport is extremely important to Muskoka. In the case of extreme forest fires, it acts as a response air base for the Ontario Ministry of Natural Resources.

According to Klinck, these kinds of partnerships are the lifeblood of the airport and are good for the whole district.

“The Muskoka Airport is also very important to tourism in Muskoka and we hope to work with partners in the tourism industry to further promote the use of the Airport,” he said. “In particular, we have a unique opportunity to promote corporate meeting, conference and retreat type travel through our airport to our many resorts.”

Next time you’re planning a vacation, flying in to the Muskoka Airport and taking in the natural beauty around you might be a great option.

Company Information Industry

Airline / Aviation headquarters

Ontari, Canada f o u n ded

1933 e m p l o y ee s

5 revenue

$2 Million

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Ocean Shipholdings, Inc

Ocean Shipholdings Raises the Bar on Ship Managemen

OSI VP of Operations Bob Sheen discusses new technolog and a constant commitment to high standards Written by: Sasha Orman

Produced by: Jason Wright

c.

nt

gy

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Ocean Shipholdings, Inc.

B

uilding and managing a ship or a fleet is complicated business. That is why there are businesses Ocean Shipholdings Inc. (OSI) who make it their specialty. The Houston-based company has been a leader in ship management and ship building services since its formation in 1981, offering a full gamut of ship management solutions from shipbuilding and crew staffing to accounting and purchasing to engineering support and maintenance. With a commitment to quality in all aspects, OSI is committed to its clients’ safety and success.

Technology for Efficiency and Safety OSI actively invests in new technology for its ships and onshore operations, knowing the many benefits that it can bring to the business and its clients.

One of those benefits is efficiency, enhanced

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USA

by AVS SafeNet modular software suites licensed from AVS Nautical Systems. OSI currently licenses accounting and crew management modules for its ship and shore operations, along with maintenance modules aboard some of its ships, and most recently added purchasing and procurement modules to the repertoire.

“We implemented this across the company and across the ships, so that we could manage all of our procurement with a single software package,” says Bob Sheen, Vice President of Operations at OSI. “That allows us in the office and the folks out on the ship to be aware of what’s being ordered, delivery dates, where they stand within our budgets and their own budgets, and it allows for visibility of what’s being ordered to senior management and to some of our customers.”

This kind of transparency is critical for clients –

“It’s important to us to put OEM manufacturer spare parts on the ships wherever we can to the maximum extent possible – there are plenty of third party parts manufactured under questionable circumstances and without certification, and we have to be very careful that what we get is what the manufacturer either recommends or provides themselves – Bob Sheen, Vice President of Operations at OSI

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Ocean Shipholdings, Inc. equally valuable is security. To address this, OSI has taken on the task of enhancing its software and working with shipboard partners to increase cyber security capabilities. “For many years, people didn’t think cyber security was an issue on ships,” says Sheen. “But it has become a major issue and we’re working within an industrygovernment partnership to develop procedures and safeguards for cyber security onboard the ship. On the shore side, there are plenty of software packages available that do that, and our IT folks are upgrading ours here.”

KPI Bridge Oil is a leading worldwide bunkering company since 1971 with offices in London, Istanbul, Miami, New York, Seattle, Singapore and Valparaiso. With a dedicated team of more than 100 experienced professionals worldwide, KPI Bridge Oil is fulfilling bunker and lube oil requirements for the international shipping industry, covering all major time zones 24 hours a day.

732.219.7900 | newyork@kpibridgeoil.com

www.kpibridgeoil.com

USA

Building Partnerships Whether it is chartering a ship from its own fleet or maintaining and repairing a ship for a client, Ocean Shipholdings Inc. believes in keeping vessels in the best quality possible. For OSI, that means maintaining a strong relationship with original equipment manufacturers (OEMs) of every piece from main engines to power generators to water evaporators.

“It’s important to us to put OEM manufacturer spare parts on the ships wherever we can to the maximum extent possible – there are plenty of third party parts manufactured under questionable circumstances and without certification, and we have to be very careful that what we get is what the manufacturer either recommends or provides themselves,” says Sheen, explaining that this policy also extends to requiring its ships to keep an inventory of all parts received or installed, so that OSI can track parts and maintain its high standard of quality companywide, and thoroughly vetting its purchasing staff to ensure that their standards are in line with OSI company policy.

A Future of Growth for OSI OSI is looking forward to good things in the near future, filled with potential for growth and success in upcoming contracts. “We like to think here that we’re going to be growing the company hopefully in a big way,” says Sheen. “We’re in a very competitive market, and we’re always

“We implemented this across the company and across the ships, so that we could manage all of our procurement with a single software package” – Bob Sheen, Vice President of Operations at OSI

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Ocean Shipholdings, Inc.

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looking to see where we can save our customers money, which reduces their cost and makes us more competitive. So we’re actively seeking new customers and seeking to grow the business.

We’ve been around a long time because of that attitude, and we see ourselves adding new ships to our fleet and growing here within the next few years.”

Standards that Set OSI Apart What separates Ocean Shipholdings Inc. from the competition? According to Sheen, it all comes down to the company’s high standards and the people who work hard every day to keep those standards intact.

“We try to attract and retain the best available people that we can, and we develop our people over a long time to have a broad range of knowledge and skill sets,” he says, noting that many OSI employees – himself included – have risen through the ranks from positions on OSI ships to a place within the company onshore.

“We are ISO 9001/2008 certified, and we’re very committed to quality and providing the best service that we can to our customers, continually seeking out input and feedback on where we can improve. Our owners started out long ago trying to be the best in the market, and we continue to strive very hard to do that.”

Company Information OSI was founded in 1981 as a Houston based provider of ship management services. The company has designed, built, financed and operated oil tankers worldwide, as well as managing U.S. Navy vessels in support of national defense objectives.

OSI maintains ships operating worldwide under strict standards for employee safety and environmental protection.

Shore staff functions provided include vessel crewing, maintenance management, procurement, chartering, insurance and claims management, cargo operations and financial control.

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Volvo Group Australia

Behind the wheel of Volvo Gr Australia’s customer-centricit

Volvo Group Australia’s Peter Voorhoeve discussed the pa importance behind his, and Volvo Group Australia’s, custo business model.

Written by: Andrew Rossillo Produced by: Nick Ledue

a:

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assion and critical omer-centric

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Volvo Group aligns with key business partners such as Linfox around mutual core values (Peter Fox, Peter Voorhoeve and Lindsay Fox).

Operating out of Volvo Group Australia’s headquarters in Brisbane, Peter Voorhoeve, President of Volvo Group Australia is responsible for the trucks business in Australia, New Zealand, Papua New Guinea, New Caledonia and French Polynesia.

This includes the responsibility of managing the Group’s suite of brands in these markets: Volvo Trucks, Mack Trucks, UD Trucks and Renault Trucks. Voorhoeve joined Volvo Group Australia in late 2013, bringing with him an exceptionally strong international and multi-brand background from various senior management positions within Volvo 122

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Group, including Truck Sales & Marketing Asia Pacific, Volvo Parts and Volvo Action Service.

Voorhoeve takes great pride in continuing Volvo Group’s premier customer-centric values. “When I came to Australia, I knew this was going to be a very exciting market,” says Voorhoeve. “While I have worked in Asia, I come from Europe, where we are very much accustomed to trucks that pull a single trailer and carry anywhere from 42 to 52 tonnes, depending on the country. In Australia that’s your small transport. Around here a prime mover unit can pull up to 190 tonnes.

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From a technical and product point of view, this is probably the most exciting market we have in the world.”

With reduced infrastructure projects in the mining sector, combined with lowering prices of iron ore and coal, Voorhoeve Market Saturation and Slowing understands the increased pressure Economy Create Fierce put on the economy and expects Competition a significantly tougher economic “From a global perspective the climate in the upcoming quarters. truck industry in Australia is a small What does this mean for market. The Heavy Duty market is Voorhoeve and Volvo Group? “The only between 10,000 to 12,000 units. economy in Australia needs to make However, the number of brands a switch to focusing on non-mining that we have here is enormous; activities as a key revenue stream.

17 different brands. It’s a highly This switch is slowed down by the competitive market and you need relative strength of the Australian to fight very hard to gain market Dollar and that equates to a slower share. In addition, the market has economy. We need to adapt to decreased about five percent from this new economic climate for the last year, creating extra pressure,” next 18 months.” says Voorhoeve.

“If I translate that into the transport Over the past 15 years or so, the industry, we have two big activities.

Australian economy has largely been One of these is truck sales, which driven by the mining industry which are investments and closely related has led to a strong appreciation of to business confidence. The the Australian dollar. “To use a Dutch other is service and maintenance, expression, I had the feeling that this related to the amount of work was the country where the trees grew that our customers have,” says into the heavens,” says Voorhoeve of Voorhoeve. “Both areas are under the market opportunities in Australia, pressure. Reduced confidence “but the trees are growing a bit smaller in the economy leads to a smaller now. From a personal perspective, I Heavy Duty truck market - which see that as an ongoing factor.” we are currently seeing. The w w w. v o l v o t r u c k s . c o m . a u

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service and maintenance side is fairly stable: there are lower activity levels in Western Australia and Queensland so trucks are driving less kilometres; on the other hand, New South Wales and New Zealand are going very well and Victoria is maintaining its momentum.”

“Coming from Asia, what’s especially interesting in Australia is it’s a very mature market,” says Voorhoeve, “that means customer focus becomes more important. In Australia we’re on a level where your 124

November 2014

product quality and features are essentially hygienic; a base factor.”

In a mature market, you have fantastic infrastructure, strong regulations and a good focus on safety, giving Volvo Group strong opportunities to go one step further and help customers run their businesses more efficiently.

“It’s really by focusing on the customer that you drive the business,” says Voorhoeve.

At his first dealer conference in February of this year, Voorhoeve

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said he had three words for his audience: “service, service and service.” Voorhoeve sees this as quintessential to Volvo Group’s market success. “Especially now with a market that’s cooling down, the extra attention that you can give to a customer - being there for them is key.”

Voorhoeve explains that in this mature market Volvo Group Australia strives to be a business-solution provider. “We go a step further from just selling the product to actually endeavoring to be a business partner and helping customers run their business.”

of being genuinely connected with customers. This has truly nurtured his appreciation and intelligence in regards to dealing with customers.

“I started out with Volvo in the Customer Contact Centre where I would help our customers work with our products and providing solutions, all day every day,” says Voorhoeve. “I try to put myself in our customer’s position, and focus on what I can do to exceed their expectation, to go the extra mile.

That is personally very important — I feel good when my customers feel good. My customers can trust that I will do whatever I can to make sure they are more than happy with the Continuous Improvement: products and services they get from Obviously, Volvo Group isn’t the only me. If you focus on there always company in the world claiming to being room for improvement, you’ll focus on their customers. However, achieve a distinguishing factor. If Voorhoeve comes from customer you do something right, you build service, that’s his background, a relationship and continue doing granting a significant competitive business with that customer.” advantage in this specific area.

Having run his own business prior to Long-running Environmental his position at Volvo Group as well Consciousness Voorhoeve continues to reinforce as coming from a family that was Volvo Group’s core values of Quality, service minded, he has customer service in his DNA, and is very much Care for the Environment and Safety.

You’ll find that in all of their products. in tune with the critical importance w w w. v o l v o t r u c k s . c o m . a u

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Australian Scott Harvey, who drives for SRH Milk Haulage, won by being the most fu

Fuelwatch championships (Joachim Rosenberg, Scott Harvey, Peter Voorhoeve, Cris

As countless people have come to know, quality is built into all Volvo Group product lines.

While green consciousness isn’t necessarily unique, the Company lists care for the environment as a competitive advantage because they’ve maintained this environmentally friendly approach for over four decades. In 1972, as part of the Xxxxxxxxxx United Nations Conference on 126

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the Human Environment, Volvo recognised that they are part of the environmental problem, but also that they are determined to be part of the solution.

It is clear Volvo Group continues to lead the way in their approach to Environmental Care. “The models we currently have on the road are very fuel efficient; more so than many other brands. Not only is the environment very dear to us, but

Vo lv o G r o u p A u s t r a l i a

S u ppl y C ha i n

uel efficient driver at the Volvo

stophe Martin).

fuel costs equate to approximately 30 percent of our customers’ costs, so creating fuel efficient models provides significant relief for our customers.”

Cost-saving Fuel Efficiency Volvo Group’s focus on fuel efficiency is best demonstrated through their Driver’s Fuel Challenge, also known as Fuelwatch. The best competitors

out of 5,800 participants from 12 countries competed in the Volvo Asia Pacific Fuelwatch Championships, held in Gothenburg, Sweden this year.

Australian Scott Harvey, who drives for SRH Milk Haulage, won by being the most fuel efficient driver at the championships. “I am very excited.

It’s a great thing to win,” said Harvey after his victory. “And it should be a great motivation for everyone. w w w. v o l v o t r u c k s . c o m . a u

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Vo lv o G r o u p A u s t r a l i a Back home, I run a business with 120 drivers. If only ten of them show such improvements in terms of fuel efficiency, it means immense savings! It’s really great if you have such a focus.”

people die in road traffic accidents globally. Research shows that human error is involved in about 90 % of all traffic accidents. Driver fatigue or inattention is by far the most common cause of singlevehicle accidents. “This is not acceptable, which is why we work Legendary Safety Standards In a country where you drive with actively in the areas of safety, aligning with key business partners 150 tonnes upwards of 80 kph, around our mutual core values,” safety is of the utmost importance. says Voorhoeve.

While many companies do indeed One way Volvo demonstrates their talk about safety today, the founders of Volvo, back in 1928, made it their concern for all road users is through partnering with Toll in support of mission, that as long as people are the Amy Gillet Foundation’s ‘Amy’s in or around their products, safety must be the principle design criteria. Share the Road Tour’ to highlight “We’ve been talking about safety for how to safely share the road with trucks and cyclists. the past 80 plus years, backing all Linfox is another well-known name of our products. The focus on safety connecting with Volvo through their in Australia is very significant, and commitment to safety. Through we have a lot of people dedicated to helping our customers focus on their dedicated Vision ZERO safety safety,” says Voorhoeve. program, Linfox is on a journey to Every year, about 1.2 million achieve zero fatalities, zero injuries,

“In Australia we’re on a level where your product quality and features are essentially hygienic; a base factor. And it’s really by focusing on the customer that you drive the business.”

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zero motor vehicle accidents, zero net environmental emissions and zero tolerance of unsafe behavior and practices. The current Qantas in-flight magazine features a safety card highlighting how Volvo Trucks and Linfox are working together to put safety first.

For many of Volvo’s customers safety is not only a core value, it is smart business. Fonterra travels more than 90 million kilometres annually, collecting more than 17 billion litres of milk in New Zealand. Volvo and Fonterra’s latest advertising campaign highlights both companies’ commitment to safety for all road users.

Superior Maintenance and Service Next to the products, the Company has a very strong and dense dealer network. Once the truck is on the road, Volvo Group does everything it can to ensure optimal operating conditions. When it comes to maintenance and repair Volvo Group strives to optimise its parts availability, which is in part made possible by their large warehouse in Sydney. Volvo Group is capable

of delivering 95 percent of all parts immediately from stock. The Company ranks parts availability for their customers very highly and are recognised within the industry for this.

Volvo Group offers their customers the option of servicing trucks themselves or within Volvo Group’s workshops, of which they have 76 around the country on all the major highways. “There’s always somewhere local to our customers for us to service their trucks or assist them,” says Voorhoeve. “We have a very strong service and distribution network in addition to our comprehensive maintenance agreements, giving customers full control of their service costs.”

Local Production Meets Demand of Local Conditions Volvo Group also has their own production facility in Australia. “It’s important that we produce our own vehicles here in Australia, because we recognise the demanding environment of this country. Every truck is different because every application is different,” says Voorhoeve. Volvo Group ensures w w w. v o l v o t r u c k s . c o m . a u

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This caption should also be swapped to photo 4 or 9: Fuel efficiency is one of the mo for both the environment and a company’s economy.

customer satisfaction through the top-performance capabilities of their vehicles and local production standards built to perform in Australia’s challenging climate conditions. “This allows us to customise our trucks for our customers.”

“We have a very complete and competitive aftermarket service.

We have a commercial crew set up which provides customer with a 130

November 2014

single point of contact, making it as quick and convenient as possible to get the services and solutions they need. It’s about proactive thinking with the customer. We always focus on what we can do to maximise the uptime of the truck: finance, parts availability, repair, affordable maintenance,” says Voorhoeve.

From helping their customers maintain the integrity of their

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Company Information Industry

Supply Chain headquarters

Wacol QLD, Australia f o u n ded

1928 e m p l o y ee s

758 p r od u c t s / services

ost important factors

It’s been 80 years since the first Volvo

shipments (keeping a giant tank of fish oxygenated and alive in one case), to delivering food to an entire busload of people waiting for repair assistance, the golden rule of serving the customer whenever and however it’s needed is applied at all times. “You learn to go the extra mile. Often, in customer service, exceeding expectations is in the small things,” says Voorhoeve. Voorhoeve applies an empathetic perspective at all times to assist the Company in better understanding how to serve, serve, serve.

truck was built back in 1928. Today, they are second largest producer of heavy trucks in the world, creating reliable transport solutions for clients all over the globe.

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Liftronic Pty Lt

Liftronic’s Innovation Moves Upward in Vertical Transpor

A trustworthy and experienced supplier of elevators, based on 30 years of experience.

Written by: Andrew Rossillo Produced by: Andrew Zhao

td:

s Company Ever rtation Industry

, escalators, service and advice

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L i f t r o n i c P t y Lt d

Lift Shaft

ESTABLISHED IN 1985, Liftronic is Australia’s largest independent lift company, trusted by Government Departments, property developers, Bodies Corporate, and private home owners to design, supply, install modernise and maintain thousands of lifts and escalators across all major Australian markets.

The company has grown to rival the strength, services and products of its competitors, through a relentless dedication to new technology, drawn from an international network of the world’s leading lift and escalator manufacturers.

Managing Director & Founder 134

November 2014

Milan Debelak founded Liftronic 30 years ago. He is likely the longest standing Managing Director within the vertical transportation industry in Australia. “We started with a very small group of people, working out of effectively a tin shed where we were doing all the operations,” says Debelak. “We were performing installations, administration and management, sales and tendering, maintenance, and service work.

And we saw that the industry was becoming globalised, and that there was space for personalised service with an Australian view rather than an overseas view. We saw a great

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Vehicle lift

opportunity. I didn’t want to work for one of the larger, globalised companies. We decided to go out on our own and to give the industry a try. We found a lot of our existing relationships and customers from when we were working in the industry were very keen to work with us.”

“We started as a two-man band and have grown to be the largest independent lift company. We have built up a strong reputation in the industry that now spans four generations both here and overseas.”

in the Australian market, Liftronic is in a unique position to draw on new technology from multiple channels from across the globe, which provides a much broader resource than is available to many other companies who are limited to their own technology.

Liftronic people have access to a broad resource of technology, engineering solutions, knowledge and experience. We have participated in almost every technological advancement in the past quarter century. For example, Knowledge and Experience Liftronic was among the first As the largest independent company Australian companies to employ w w w. l i f t r o n i c . c o m . a u

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supplier supplier profile profile

Company name BusinessFriend

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c o m pa n y n a m e

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machine-roomless lifts, energy systems, cutting-edge controller dispatching systems, remote fault diagnostic systems and observation and special application lifts.

Liftronic’s customers can be confident that they are dealing with people with the highest levels of expertise, who have access to the broadest range of new technology and the latest engineering solutions.

internally and externally. We’re very hands-on,” says Debelak.

All the Company’s Directors are available to all clients in relation to any matters that affect the business.

“We welcome this contact because it gives us detailed information on what our business is doing and what our clients need.”

Liftronic is large enough to leverage size and scale, but still small enough that clients can pick up the phone and dial directors Quality People Keep the directly. “That’s something Company Going Up extremely important to us. All our For 30 years Liftronic have installed directors need to know exactly and maintained elevators and escalators across a broad spectrum what’s going on in the business. of Australian operating environments. It’s critical that we have that intimate contact with our clients. This way, we They are justifiably proud of the actually experience the issues.” This quality of their products, services and the expertise of their people. Liftronic’s allows Liftronic to better understand, people are some of the industry’s most serve and anticipate. highly regarded. Its management team “The directors continue to maintain is hands-on in Australia, available to this hands-on approach, but as the respond immediately to the needs of business grows it becomes a little more its customers. difficult. Therefore, we established an “A number of years ago, as the Executive Management Team (EMT) directors were spread over a larger, that work with us to cover the growth growing business, we decided we in the business. Our EMT work with us needed a plan. We need people and with our middle managers to run working with us that can have and grow the business.” personalised and direct contact “We develop strategies w w w. c o m p a n y u r l . c o m

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Home Lift

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“We differentiate ourselves through products, service and innovation throughout the business offerings we provide. We have great flexibility across a range of products that satisfy all vertical transportation needs. As a company, we probably have the widest range of products one company can offer within the vertical transportation industry,” says Debelak.

“Part of what makes us unique is that while we have longstanding and Capabilities substantial business partners and Liftronic is committed to their suppliers, we are not obligated to Quality Accreditation and provide a fixed product that would, for an uncompromising Safety example, suit a multinational’s parent.

Management System. Their We have great flexibility that allows responsive and highly trained us to choose product that best suits staff are available 24/7 with access to local inventory of quality the client. Also, we have complete autonomy in that all our decisions spare parts and the support of a on products and services are customer centric “walk-the-talk” done locally by people that run the leadership culture. business on a day-to-day basis The Company’s unique position as the largest Australian company in with a strategic long-term view.”

Liftronic is bound to an ethos the sector allows them to maximise the service, operational and financial that ensures their clients deliverables that are valued by their experience the highest levels clients and their customers, in retail of quality, safety and service. environments, Government facilities, This approach has consistently delivered superior passenger transport hubs, residential towers, office blocks and private residences. comfort, increased uptime, and horizontally and vertically with our Management Team and all our staff,” says Debelak. Thanks to this approach, Liftronic has also been able to establish and groom its employees in a manner that creates and maintains an existing network to make sure no responsibilities are ever lost track of, and we promptly and effectively attend to our clients’ needs.

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Escalator

has extended the operational lifecycle of their products.

Focused on Developing Technology and Growth Liftronic works hard to leverage 142

November 2014

their cutting-edge position while continuously looking for potential acquisitions, companies with good value within their organisations, whether they are directly lift companies or have similar synergies to their own.

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“Fortunately, we have a good amount of available funds and facilities which allow us to make relatively large acquisitions,” says Debelak.

Liftronic is currently focused on developing technology and looking for acquisitions for growth. “We have some substantial suppliers and contributors. We consider our suppliers our partners in our business. We are working with them in great detail to develop new products in our industry,” says Debelak. Liftronic’s products, engineered components and architectural finishes are drawn from multiple supply chains that connect their customers to the latest and best solutions in the world.

“This means cutting-edge products are not only driven by multinational competitors, we are also driving technology and efficiency improvements within existing and new products.”

Company Information Industry

Construction headquarters

North South Wales, Australia f o u n ded

1985 e m p l o y ee s

140 revenue

+$40 Million

Liftronic’s Future “The Australian market has huge amounts of opportunity for a company that is offering quality product and high levels of services. We see people that are hungry for that. In addition, the Australian economy has a very good base for growth. We see a lot of opportunity both within our existing and new markets.”

Above all, Liftronic is instilled with a level of integrity that is the foundation of customer relationships that spans decades and will quite surely continue to add decades to its peerless track record.

p r od u c t s / services

Established in 1985, Liftronic is Australia’s largest independent lift company, trusted by Government Departments, property developers, Bodies Corporate, and private home owners to design, supply, install, modernise and maintain thousands of lifts and escalators across all major Australian markets.

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143

Symons Group:

Symons Group Maintains Powe with Transport and Energy

Symons Group continues to grow its transport and ene nurturing family values and respect for local communiti Written by: Andrew Rossillo Produced by: Wayne Masciotro

erful Synergy

ergy services while ies.

145

Symons Group

Warehouse Storage Racking Options

Symons Group continues to build on a foundation that began in 1984 with the establishment of Symons Transport. The group has now grown to also incorporate property interests and provide extensive services to the energy sector.

Encompassing Transport, Energy Services and Waste Remediation Services, Symons Group provides innovative quality transport solutions, delivered safely and efficiently. The Group aims to exceed customer satisfaction expectations by using world-class, innovative equipment and a highly 146

November 2014

motivated, skilled team to continuously improve their systems. Symons Group’s management team and highquality fleet are ably supported by a high-quality driver team.

The vast majority of the Symons Transport and Symons Energy Services operations are based on a large, multi-purpose site in Bell Block, Taranaki. The workshop base for the Group is split between Bell Block and Oakura, Taranaki. The Group is proud of its Taranaki origins and familybased values and has become well known for high quality, well-presented equipment, attention to detail and

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Symons Transport insulated tanker unit loading Crude Oil at Tag Oil Cheal A Production Site

strict regard for safety practices.

“We have a strong focus on HSE and quality,” says Symons Group General Manager Mark Robinson.

“Not only are we accredited through the Tertiary Level Workplace Safety Management Programme (WSMP) with ACC, but we are one of the few transport companies to be accredited to Fleetsaver Gold level for our transport operations.

We’ve invested significantly in this area in recent times and believe our commitment to this area is a strong point of difference. For example, we

were the first company in Taranaki to import grapple forks for our Symons Energy loaders because of the safety and efficiency improvements they offered. In addition, our environmental compliance in capturing waste, hydro-carbons on our sites is positively recognised by local authorities. And our trucks are all Scania, a brand renowned for their safety specifications.” The company considers all these factors to be especially vital in working with their customers because they are operating in local communities. w w w. s y m o n s g r o u p . c o . n z

147

Symons Group Family Values and Community Spirit As part of Symons Group’s commitment to family values, they continue to treat every customer as unique entities with special needs.

This approach, combined with their growing high-quality fleet, yard capacity and facilities, together with their high-quality management and local and national partnerships, means the Company is also flexible enough to cater to a wide range of transport and energy sector needs.

• • • •

Truck / Oil industry parts supply Truck / Oil industry servicing and repairs Lubricant specialists Cummins parts and service agent

Need a part? You need us!

These family values and flexible strength are built on a 30-year history of being 100 percent family owned. “Graham Symons began the transport company in the early 1980’s,” says Robinson. “Prior to getting involved in trucking, Graham had developed farming interests in Coastal Taranaki. Initially, the trucking interests were an additional side line to farming, but over time grew to a more standalone business.

Increasingly the transport company has grown with other divisions of

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Sheds • Awnings • Carports • Workshops • Barns • Commercial • Industrial • Rural

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the business emerging, such as Symons Energy Services and Waste Remediation Services.”

Robinson points out that the entrance into the energy sector was largely based on bolstering the significantly seasonal element of the transport company. This created revenue diversification and reduced risk exposure. “In more recent years, Graham has established a small board and senior management team to provide a more structured, rigorous approach to managing the growth of the companies. Graham now chairs the Board, maintains key relationships, and has an active interest in new areas of development for the companies,” says Robinson.

Today, Graham’s children, Jane and Murray are currently on the management team. Jane recently took the lead role in HSE / HR while Murray has been in charge of the transport division for the last two years. Being family owned and Taranaki based is a big part of the brand and culture of the companies.

“Despite significant growth, we’ve worked hard to maintain the family feel of the company and the ethos this brings, looking after our

own people but also treating our customers with a real personal touch,” says Robinson.

“Part of growing with the support of our community is also investing back into it. We like to partner a whole host of community causes in the province, such as junior rugby, junior surf-life saving, schools near to the areas we are based and around the sites we work, various children’s charities, a range of junior sports-people competing in national and international events, community infrastructure projects such as the development of the regional cycle velodrome and regional BMX track, the local Helicopter Rescue Trust, to name just a few. We are not an international company but a local one that intends to be around a long time. Part of being in a small community is doing our fair share to support people because we’ve been very fortunate to have a lot of support from the community ourselves. We strive to over deliver on the expectations people have of us but with a humble approach,” explains Robinson.

Integration of Transport and w w w. s y m o n s g r o u p . c o . n z

149

Symons Group

Water Delivery for local community learn to swim program.

Energy Services Exceeds Customer Expectations Symons Group’s Transport Services division has become synonymous with delivering safe, exceptional transport solutions to their customers. This division is able to provide a nationwide service specialising in the areas of bulk liquid transport (includes food-grade) and oil related services.

“We have become renowned for innovation and our continued commitment to utilising the latest in technology and product innovation 150

November 2014

— our customers are receiving the safest, most efficient transport solutions,” says Robinson.

Significant elements behind the Company’s competitive advantage include their strong HSE record, excellent presentation of the single, modern Scania brand fleet and investing time and resources into constantly looking to improve the service they provide for customers.

As part of that, significant, ongoing investments are also made towards high-quality equipment, such as trailers with certified bolsters and head boards, custom-built tankers,

E nerg y

etc. Careful attention and resource application also goes towards driver training.

Symons Energy Services feature specialised equipment and operators familiar with the handling and safety requirements of oil field equipment, including the transport of casing, drill pipe and assorted drilling equipment. One of the top priorities here is to achieve zero harm to people, property and the environment while delivering an optimised service with highly experienced and trained staff. “We work with companies in the

energy sector to understand their needs. To better meet these needs we have developed a large, multipurpose, environmentally friendly site with a range of services and facilities, including a number of service providers to operate in the Symons Energy Services yard,� says Robinson.

By offering both Transport and Energy Services divisions, Symons Group is able to provide an integrated supply chain solution, offering the benefits of storage and inspection with logistical support of a transport hub. Through this, the Company can offer strong incentives w w w. s y m o n s g r o u p . c o . n z

151

Symons Group for clients who choose to integrate their energy and transport services with Symons.

“We provide a one-stop energy service hub that allows customers to have one point of contact (make one phone call) to access a whole range of logistical support services,” says Robinson. “Not only does this reduce time and administrative function for clients dealing with us, but it also improves the efficiency with which we are able to provide services as we are able to coordinate our own resources with a lot more ease than if multiple parties were involved in this process. We are able to take a lot of the hassle often associated with managing logistics away from clients and allow them to focus more on key aspects of their business.”

“We can also respond much more quickly and effectively to emergency type situations. We are competitively priced but can save further costs by virtue of the efficiencies enabled through our integration. For example, there is far less downtime in working with Symons, and we also ensure that there is no charge on trucks when 152

November 2014

loading from within our yard, which is a significant savings in logistics across a drilling campaign.”

Furthermore, Symons Group maintains an operating consciousness regarding legacy issues for the companies they work with. They maintain a high regards for HSE and environmental measures, ensuring that they are of the highest standard. This includes reducing their environmental imprint.

For example, water they use through the inspection facility is rain water captured from their warehouses.

Strong Investments and Looking Forward This financial year has seen a significant investment in the Company’s facilities and equipment, growing their capacity across the Energy and Transport areas. The Group is in the process of completing their third warehouse. Shed Boss Taranaki, a company specialising in providing custom designed steel building solutions, has been responsible for the design, build and project management

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of all three warehouses. Shed Boss worked with Symons from early design stages, taking care of engineering, design, building consent documentation, all the way through to complete construction and project management. Shed Boss’ strong and right focus on their customers paired with their involvement in the steel building industry for nearly 10 years and 30 years of local experience in building and related trades ensured the safe and timely work for these warehouses.

In addition, Symons Group also continue to invest in the transport area, increasing the overall equipment inventory of the fleet by approximately 20 percent, with trucks, food grade tankers and trailers being added.

Robinson went on to discuss elements they’ll be pursuing to capitalise on this new growth: “We promote a culture of constant improvement, high expectations and innovation — there is a drive within the Group to always look to do things better than before throughout all of our operations. As part of this, we look forward to continuing to grow our team and continuing to develop the capability of our people to meet current and future challenges and opportunities. This includes continuing to work with existing and new customers to help improve their operations — we get a thrill out playing a strong role in seeing our customers succeed.”

Company Information Industry

Energy headquarters

Bell Block, New Zealand f o u n ded

1984 e m p l o y ee s

140 revenue

Not Disclosed p r od u c t s / services

Symons Group began with the establishment of Symons Transport in 1984. The group has now grown to also incorporate property interests and provide extensive services to the energy sector. The scope and size of the transport division has also grown significantly.

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Rail Track Association Austr

The Rail Track Australia Association (RTAA the Interests of Rail Track Infrastructure From Small Beginnings – the Story Continues to Grow

Writ te n by : Dav i d B a in bri d g e

ralia:

A): Pursuing and Promoting

155

R a i l T r a c k A s s o c i at i o n A u s t r a l i a

The RTAA was formed in 1973 after the First International Rail Sleeper Conference was held in Sydney. This conference was the catalyst for the establishment of the Rail Sleeper Association which became the Rail Track and Sleeper Association in 1979. Following further organisational changes in 1983, the association became known by its current name - the Rail Track Association Australia (RTAA).

The RTAA held thirteen successful rail conferences between 1973 and 2001 at threeyear intervals. These conferences were held in major locations in 156

November 2014

Australia and New Zealand and were well supported by the rail industry. They included guest speakers from Australia and overseas, providing a high standard of technical papers and information to rail professionals.

Between conferences, and during the years 1979 to 1995, the Rail Track Journal was published by the RTAA. Its objective was to maintain a communication link between members. In 1996 this role was assumed by Track & Signal Magazine, with endorsement by the RTAA. The RTAA continues to provide technical and editorial

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assistance to the publication while also regularly contributing articles.

Railway Association (ARA) that resulted in AusRAIL. For the first time, all five major Australian rail The Yellow Tie Dinner and industry groups joined forces AusRAIL Conferences to present the highly successful The inaugural RTAA Yellow Tie AusRAIL PLUS 2003 Conference Dinner was launched at the 1981 in Sydney. (The ‘five’ were ARA, Rail Conference, when guests RTAA, ARIC (now known as were presented with a selection RISEG), IRSE and RTSA). of coloured ties and scarves Since then, AusRAIL PLUS representing a rail theme. The Conferences are held every other yellow ties became the most highly year, alternating with the AusRAIL sought and the name stuck. The Conferences. The RTAA continues Yellow Tie Dinner was born. to maintain a prominent role, In 2001, the RTAA took a hosting a technical stream during new direction and secured an the conference as well as one of agreement with the Australasian the most popular social events on w w w. c o m p a n y u r l . c o m

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the Australian rail calendar - the Yellow Tie Dinner.

RTAA Field Days Event While all of these changes were positive, the RTAA was still searching to clearly articulate and distinguish its purpose within the rail industry. A key challenge was ensuring the services provided to the membership were meaningful and good value for money. There was a strongly held view that, while the AusRAIL conference provided a meeting place for executives, professionals and lobbyists, the thousands of blue-collar railway workers also needed an event specifically targeted to meet their needs. It was also acknowledged that site-based rail workforces should be publicly recognised as valued contributors to the industry.

Added to these imperatives, an event was needed for rail workers to engage in industry advances, learn about new technology, while also being able to meet rail executives that they did not often see on track.

As a result, the RTAA’s Field Days event was established in 2006.

While based on the International Exhibition for Track Technology held

in Münster, Germany, RTAA’s event has a distinctly Australian flavour.

The fifth event was held this year with more participants than ever, including international delegates.

Frank Franklyn Young Rail Specialist Award In 2008, the RTAA awarded its first Frank Franklyn Young Rail Specialist Award. The award seeks to encourage, reward and promote young achievers within the rail infrastructure industry by facilitating their travel to an international rail event. This prestigious award is presented at the gala dinner at AusRAIL. New Directions with an Eye on the Past In 2010, David Bainbridge was elected President of the RTAA, heralding a transformational rethink in the RTAA’s direction and approach.

For the first time, a membership satisfaction survey was undertaken and the results were used as the basis of a three-year strategic plan, currently being implemented.

The key focus has been to deliver a more member-focused w w w. c o m p a n y u r l . c o m

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R a i l T r a c k A s s o c i at i o n A u s t r a l i a

approach. This includes targeting a membership base that is spread across Australia, and providing services accordingly, rather than being a Sydney-centric organisation.

Implementing the strategy has not been without significant challenges however, and there has been significant progress in the eight key focus areas. These include: 160

November 2014

1. RTAA profile: become a credible voice for our members 2. Field Days Event: be bigger, better and more professional 3. Technical stream at AusRAIL: provide more relevant and higher quality papers 4. Networking events: offer professional events across Australia that are recognised as recordable

S u ppl y C ha i n

CPD credits for members of the Institution of Engineers Australia 5. Frank Franklyn Young Rail Track Specialist Award: increase applications and improve quality 6. Website, media and social networking: improve RTAA’s image and communication with members 7. Track standards: improve the RTAA’s working relationship with

RISSB and other organisations 8. RTAA performance: monitor member satisfaction through a second survey (due in July 2013).

The results are impressive and there has been a 50% growth in memberships over the past three years. The RTAA has also modernised its image with a new logo and website representing w w w. c o m p a n y u r l . c o m

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this shift. There are many more achievements, with much work still to be done. The second membership survey will reveal the extent of progress, areas requiring continued focus and new challenges.

Importantly, the RTAA will continue to encourage both individuals and corporate organisations to take up membership and play an active part in the industry.

The Future – What’s Next?

There are a number of key areas where the RTAA can add value to benefit the rail industry as a whole.

These include: 1. Supporting the introduction of innovation to the industry which has the potential to save the lives of workers and members of the public.

2. Attracting and retaining young people into rail.

3. Increasing diversity within the rail industry, particularly encouraging greater participation in the new age of railways by women and Indigenous people.

4. Using social media tools to better share information and facilitate debate in the industry.

This includes using tools such as LinkedIn, Facebook and Twitter.

While this may not come easy to many (older) rail colleagues, it is an essential part of communicating railmessages to peers, stakeholders and decision-makers. This will help secure the future of the rail industry in years to come.

A Final (Personal) Note The RTAA has become recognised as a relevant and prominent member of the Australian rail industry community and the spiritual home of the Field Days event in Australia. Long may it remain so, and long may we continue to provide exceptional value to our members. The RTAA strives to continuously improve its service, to move forward with the times and serve the interests of the rail industry for the foreseeable future. I am passionate about continuing this journey and making our vision a reality. I thank all members who have humbled me with their support for the RTAA and my role as President.

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ID Logistics

invests in new partnerships and international expansion The Company develops logistics solutions with a standard for excellence and a model for success Written by: Flรกvia Brancato | Produced by: Taybele Piven

165

I D Lo g i s t i c s

W

ith the proposal to develop intelligent logistics, combining the benefits of a solid cutting edge technology structure, operational efficiency, and innovation, the ID Logistics group develops and implements sustainable logistics solutions tailored to the entire world. Operating in 14 countries, the company has 170 operating centers and employs more than 13,000 employees.

The rise of the group began soon after it started providing services for the storage and distribution of general products in France. The company’s first branch was opened in Taiwan in late 2001. From there, the success and expansion of ID Logistics has not stopped. The company began forming new partnerships each year of operation, including market-leading clients in countries such as Brazil, China and Spain.

JaguariĂşna warehouse and ID Logistics fleet

166 November 2014

ADAPTED LOGISTICS

Key People

Nicolas Derouin General Director ID Logistics in Brazil

Home delivery services

International Expansion and new services The importance of the company’s global growth is related not only to the number of new partners, but the company’s strategic plan to expand its activities, primarily with regard to specialized distribution. The Director General of ID Logistics in Brazil, Nicolas Derouin, highlights some details of this strategy: “Primarily in the last two years, the group has focused on new contracts and strong, long-lasting partnerships with customized solutions to meet the specific scope of the projects in which it is involved. The general idea is to set up branches in attractive markets if we have a demand from one of our partners.” Brazil, for

“We will continue our growth strategy, which includes targeted acquisitions and a growing focus on international expansion” – Nicolas Derouin

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Palletized load, Jaguariúna warehouse

example, is among the first countries in the international development of ID Logistics. The Brazilian unit is considered the group’s largest subsidiary, both in terms of revenue and workforce.

Another impactful decision the company made was to go public with 25 per cent of the company’s capital in 2012. This introduction into the NYSE Euronext stock market significantly strengthened the financial structure of the group. According to Derouin, “this helped the company in several ways, not only in terms of strategic management and communication, but also in business diversification, further enabling external acquisitions.”

Among many new acquisitions, mostly since 2012, the purchase of CEPL 168 November 2014

was undoubtedly one of the most relevant purchases for the company.

“In 2012, our turnover was around 565 million Euros. After the acquisition of CEPL - which occurred in the middle of last year, we closed 2013 with a 31.4% growth, reaching 800 million Euros”, explained Derouin. Also, according to the executive, the expectation for 2014 is that ID Logistics’ revenue reach 900 million Euros. This forecast takes into account the organic growth accounts for the group’s annual revenue.

Last year, the company entered a new and important partnership with Nivea. Upon entering the cosmetics industry, ID Logistics created a new platform with specialized equipment, integrated scanners, and software w w w. i d - l o g i s t i c s . c o m / b r

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analysis of how employees use their health benefits, very important actions are proposed to mitigate the increase of claims in health plans.

ID LOGISTICS, a French multinational is a successful example of INTEGRATED HEALTH MANAGEMENT., The company effectively adopted the Quality of Life program for its employees and applied it to various health programs, starting with the mapping of its health profile and a strategic presentation for its Board, which identified company habits and lifestyles that aided in promoting health awareness and prevention.

Vera and Victory’s Life Quality team.

Notably, logistics companies are characterized by a dispersion of employees in various branches for the operational range. Thus, the challenge faced by the

HR department is much greater to form a multidisciplinary team and ensure the health of all its members. VICTORY has the solution: A “hands on” team, as Vera says. A team formed by medical doctors, nurses, managers, nutritionists, physiotherapists, psychologists and social workers works

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“The corporate world needs to understand that in order for a company to obtain higher productivity, reduce absenteeism, presenteeism, and a more motivated and happy team, it has to invest in health prevention and promote its importance in the company’s environment.” These are the words of VERA BEJATTO, President of VICTORY CONSULTING, one of the most important and qualified companies in integrated health management, and she says there is no other formula to maintaining control over health plan costs.

In light of this, there has been a growth in the hiring of consulting companies specialized in IHM – Integrated Health Management, which has proven to be a great ally to HR and Financial Managers alike . Victory, for example, is one such consulting firm, capable of providing solutions to corporate clients in order to reduce health costs. After a thorough

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I D Lo g i s t i c s

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ID Logistics workers keeping business organized

that cuts down on manual operation. “This type of investment helps us eliminate the risk of errors, reduces delivery times and optimizes costs.

Everything is automatically monitored and the results are formidable”, says Derouin.

Business content Since its creation, ID Logistics has developed logistics services following a standard for excellence and a model for success. The primary activities of the company are the provision of logistics services and supply chain optimization for big players in the distribution industry. Its main purpose is to work with storage services, value added services, and transportation management.

The importance of logistical operation is a benchmark for the company. Although previously

“The general idea is to set up branches in attractive markets if we have a demand from one of our partners” – Geral Director of ID Logistics in Brasil, Nicolas Derouin

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I D Lo g i s t i c s

“In general, our revenue is divided as follows: 41% retail, 27% industry, 26% unit picking, and 6% e-commerce” – Geral Director of ID Logistics in Brasil, Nicolas Derouin

seen as a “necessary evil”, with new demand, logistical operation gradually became a tool for creating value that differentiates the performance of ID Logistics.

ID Logistics operates in various industries. If we divide the distribution of company revenue by business segment, the food industry (dry products) and consumer goods are the main segments, corresponding to 20% and 18%, respectively. Since contract logistics has sectorial particularities, the company integrates its positioning by working hard on large-scale distribution also in the electronics, pharmacy, perfumery, textiles and e-commerce markets. “In general, our revenue is divided as follows: 41% retail, 27% industry, 26% unit picking, and 6% e-commerce”, explains Derouin.

Derouin also comments on the evolution of the company in this sense. “ID Logistics started with a strong expertise in conventional retail, then diversified into specialized retail - sports and building materials - and kept the natural bond between the industries, characterizing ID Logistics’ positioning in the market”.

Safety Engineers Team

Quality and tradition The guarantee of evolving processes and improving quality and productivity are also among the company’s competitive advantages. The information systems also add high-level internal resources that are reactive and specialized by 172 November 2014

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Overview of warehouse under ID Logistics management w w w. i d - l o g i s t i c s . c o m / b r

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I D Lo g i s t i c s

Jundiaí branch facade

activity type, generating an even more professional result. Some examples of equipment used in operations include the intelligent forklift used in storage operations and the development of specific tools to manage transportation between various supply chains.

The unit picking solution is another service that meets the needs of both manufacturers and retailers. In general, while the point of sale was always the primary distribution channel, today with the growth and boom of e-commerce, it was more than necessary for the company to create a new format for logistical organization. “We have adapted the entire unit picking structure, by creating an e-commerce business unit and a new distribution format”, explains Derouin.

Management of the transportation for their clients is another important operation of ID Logistics’ solutions. The IT system incorporated in the 174 November 2014

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Company Information Industry

Supply Chain headquarters

Cavaillon (France) and Barueri, SP (Brazil) f o u n ded

2001 (Group) and 2002 (Brazil) e m p l o y ee s

13.000 (Group) and 3.700 (Brazil) p r od u c t s / services

operations enables tracking and efficiency throughout the delivery process - including Transportation Management Systems (TMS) for more than 1 million parcels delivered by the company per year.

Continuing with the excellent growth, ID Logistics’ focus is to complete integrating with CEPL and further consolidate the company’s position in all sectors. With the odds in their favor, Nicolas Derouin adds, “We will continue our growth strategy, which includes targeted acquisitions and a growing focus on international expansion”.

Logistics contracts, retail, industry and commerce, cosmetics and automotive sectors management Eric Hemar, CEO Christopher Satin, COO Nicolas Derouin, General Director in Brazil

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