Supply Chain Digital - July 2014

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

J u l y 2014

Top 10 Air Freight Companies

BAE Systems talks Aerospace

Nokia + Microsoft Behind the scenes

Technology SatNav’s challenges

IN THIS ISSUE

8 Logistics 16 Supplychain

Management

32

Technology

40 Top 10

50 TTS Port Equipment 92 BTX

EDITOR’S COMMENT

Always looking for better high in this July issue, where funnily enough we have content connected to aerospace, satellites, and pretty much everything else that goes on above us.

Our cover feature is an exclusive with BAE Systems on the aerospace industry, as its importance and commitment to the sector is underlined throughout with some eyebrow-raising facts.

We also ask is Satellite Navigation technology more of a hindrance than a help in our second feature, which includes expert comment from Dr Nick Ward of the General Lighthouse Authorities for the UK and Ireland (GLA’s). Take a look behind Nokia’s supply chain too, and see what is new after the recent Microsoft Mobile acquisition.

Jane McAuliffe, principal advisor at Optimum Procurement Group explains why vetting suppliers in the form of company ‘health checks’ are best practice, and then of course we have a Top 10 breaking down the world’s leading airfreight companies.

Enjoy your read.

THE QUALIT Y IS SK Y

Sheree Hanna Editor sheree.hanna@wdmgroup.com 3

CONTENTS

FEATURES

32 Technology Satellite Navigation technology: More of a hindrance than a help?

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TOP 10

Air Freight Companies

Logistics

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BAE Systems on the Aerospace Industry, the company at the forefront of aviation

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24

Procurement

Supplychain Management Why Nokia ticks all the Boxes

Jane McAuliffe, principal advisor at Optimum Procurement Group discusses ‘How to vet suppliers’

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Answers for industry.

CONTENTS

62 Danya Foods

74 UTi Zimbabwe

50 TTS Port Equipment

COMPANY PROFILES This month we feature TTS Port Equipment, the global enterprise which specialises in marine and offshore equipment solutions and services - see page 50.

EUROPE & MIDDLE EAST 50 TTS Port Equipment 62 Danya Foods

AFRICA 74 UTi Zimbabwe

84 Halterm Limited

CANADA 84 Halterm Limited

USA 92 BTX

AUSTRALIA 104 John Holland Rail

92 BTX 7

LOGISTICS

BAE Systems on the Aerospace Industry Endorsed by the RAF and UK Government, the company is at the forefront of aviation and therefore best placed to detail sector news. Here is an insight into BAE practices and where the industry is heading W R I T T E N B Y: S A M J E R M Y 8

July 2014

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LOGISTICS

The Rolls-Royce manufacturing facility in Filton, Bristol, showing the EJ200 engine used by the Eurofighter Typhoon. Photograph courtesy of Rolls-Royce plc.

TOWARDS THE END of 2013 Oxford Economics were commissioned to look at the headline economic contribution that BAE Systems overall made to the UK. The figures refer back to 2012 but showed that the UK turnover for the PLC was a staggering £8.2 billion.

The ripple effect of programmes like the Typhoon, Hawk and F-35 underline just how important the business is to 10

July 2014

the country. Each of these rely heavily not just on the efforts of its employees but on the skill and labours of teams of suppliers. These range from the huge multi-nationals like Rolls-Royce to small family-run businesses.

“A lot of our suppliers have a long heritage of working in the aerospace and defence industry, have a great pedigree and excellent products,” said Nigel Cook, the Head of Commercial

F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E

and Procurement function.

“The bulk of our expenditure is in the UK and it has been like that for a while.

A lot of the relationships go back many years - company names may have changed but many firms have been supplying us for a great number of years, decades in some cases.”

Even one of its latest programmes Taranis is a good example of the power of the supply chain and its impact on

UK plc. About 70 percent of the money spent on the development of Taranis went to UK-based suppliers.

This points to another key stat brought out by the Oxford Economic report that said for every 10 jobs at BAE Systems, 35 jobs are supported across the economy as a whole, including those directly employed at BAE Systems.

Cook said it’s all part of a virtuous 11

LOGISTICS

‘It’s very important that the suppliers we deal with are the right suppliers by all criteria. They have to be spot on, in terms of quality, their financial position and so on’

Nigel Cook, the Head of Commercial and Procurement function 12

July 2014

B A E S Y S T E M S O N T H E A E R O S PA C E I N D U S T RY

circle with spending enabling companies to invest and develop technologies that in turn allow the nation to differentiate and compete on a global stage.

Clearly MAI is a magnet for many smaller businesses who are keen to work with the company – so what do the procurement teams look for in a good supplier?

“When I started work in this field 30 years ago the questions we asked when we looked at a potential supplier were less comprehensive than they are today. These days we look at a lot more to make sure they’re a good fit.

It’s not just about the price.

“It’s very important that the suppliers we deal with are the right suppliers by all criteria. They have to be spot on, in terms of quality, their financial position and so on. You have to assess other risks such as business continuity, environmental issues and their approach to responsible trading.”

Supply risk management is part of the day to day work that Cook’s team typically do for the procurement function.

Building relationships is key too.

MAI’s top 20 suppliers represent around 65 percent of the business’s

spend. A lot of this is done face to face but also through having a voice on key trade bodies like the North West Aerospace Alliance and the ADS. “The combination of the people and product is why I gravitated to the profession. And it’s those two dimensions that still give me a buzz today,” said Cook.

Evidence suggests that the aerospace industry is in safe hands too. Of the 38,000 new aerospace engineering jobs that opened up in

A worker operating machinery at Denroy Plastics, based in Bangor, Northern Ireland. The company makes around 180 parts which fit on to the Eurofighter Typhoon aircraft 13

LOGISTICS

Effectively working with suppliers 2012, 4,000 of them were taken by students. Aerospace is also the third most popular field for engineering students.

With thousands of purchase orders issued each month Cook and his team are constantly looking for ways to work more effectively with suppliers in the future.

He said: “We have a vision to trade with our suppliers in a paperless environment. We have a little way to go but over time our aim is to have all our orders issued electronically.

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July 2014

“Another enabler is Project Phoenix which will see Procurement migrating onto a single ERP system from the seven that we use today. This single way of working will assist us to become as effective as possible.”

Procurement is involved with all aspects of the business life cycle from bid management, strategic sourcing, and contract negotiation and onto the development and management of suppliers. One thing is for certain, BAE systems will remain ahead of the industry curve for some time yet.

F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E

SUPPLY CHAIN FACTS • MAI issues more than 50,000 Purchase Orders and amendments a year • In 2013, MAI spent in excess of £2 billion with supply chain companies, including other parts of BAE Systems • Across BAE Systems, employment in the UK in 2012 stood at 33,000. The majority (69 percent) of those employed were in highly skilled engineering and engineeringrelated roles

• BAE Systems labour productivity is significantly higher than the UK national average - 2.46 times the national average • BAE Systems generated £3.4 billion in exports in 2012 (around 1.14% of all UK exports)

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S U P P LY C H A I N M A N A G E M E N T

Why Nokia Ticks All the Boxes A look behind the scenes of Nokia’s supply chain and what has been critical to its success W R I T T E N B Y: S A M J E R M Y

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SUPPLY CHAIN MANAGEMENT

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July 2014

WHY NOKIA TICKS ALL THE BOXES

AS A MAJOR global mobile phone manufacturer, Nokia interacts with thousands of suppliers every day.

Recently, it was announced the best of Nokia and Microsoft mobile devices and services would be brought together, signalling the potential for a brighter future.

Commentating after the recent Microsoft acquisition, Rajeev Suri, Nokia President and CEO said: “From the early vision of Microsoft of placing a PC in every home and on every desk, to Nokia connecting billions of people through mobile devices, they have connected generations.”

This also brings great responsibility and the Finnish communications and technology corporation says it is committed to ensuring the highest standards of corporate responsibility are exercised.

Microsoft Mobile operates its own global manufacturing network, and most manufacturing is done in-house complying with strict internal social and environmental requirements.

The first tier of its supplier network in mobile phone production starts after its own manufacturing network.

This supply chain consists of around a hundred direct suppliers for

‘From the early vision of Microsoft of placing a PC in every home and on every desk, to Nokia connecting billions of people through mobile devices, they have connected generations’ hardware, components and parts, as well as hundreds of software suppliers. The firm also works with thousands of indirect suppliers who provide services and equipment needed for daily operations.

The Nokia global multi-layered supply chain begins with raw material extraction and processing, and ends with the manufacturing of components and final product assembly and distribution. There are typically four to eight supplier layers between mining activities and Microsoft Mobile assembly factories.

Nokia Supplier Code of Conduct establishes the basic principles for 19

SUPPLY CHAIN MANAGEMENT business conduct that Microsoft Mobile continue to expect from suppliers who help make its mobile devices.

It communicates in a clear and understandable way the fundamental principles of ethical and sustainable business practices. All Microsoft Mobile suppliers must comply with this code of conduct regardless of location or size.

The Nokia Supplier Requirements, that Microsoft Mobile continue to abide by, are based on international standards such as International Labour Organisation and United

Nokia suppliers are best in the world

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Nations conventions, enforced through contractual agreements and verified by various assessments and audits.

Minimising impact Roughly 74 percent of the energy consumption and greenhouse gas emissions generated by an average Nokia phone during its life occur in the supply chain, before the components reach the corporations factories.

In order to reduce this impact and to produce environmentally sound products, a holistic approach to environmental management is of key

WHY NOKIA TICKS ALL THE BOXES

importance.

Nokia has worked hard with mobile phone component suppliers to establish environmental policies and to ensure monitoring, controlling and proper treatment of energy consumption, air emissions, waste, wastewater, hazardous substances, and chemicals generated from operations.

This helps it ensure effective planning, operations, and control of environmental matters at the facilities where components and parts are made for it. Today, over 90 percent of its phone hardware and mechanics

suppliers’ sites are ISO certified in environmental management, and the majority of them have companylevel reduction targets in place and monitored for energy, greenhouse gas

ETHICAL COMPONENT SUPPLIERS Nokia works hard with component suppliers to establish environmental policies and to ensure monitoring, controlling and proper treatment of energy consumption, air emissions, waste, hazardous substances, and chemicals generated from operations

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SUPPLY CHAIN MANAGEMENT emissions, water and waste.

Nokia’s future goal is to drive impact reductions even further to enable a longer term positive impact. Suri also acknowledges that as well as all these efforts and missions for the future, the company remain thankful to its loyal customer base.

He said: “These are exhilarating times, and we are only here because of the customers. Our goal is to give industry leading innovation, quality and efficiency.

“We are rapidly approaching a world where everybody and everything will be connected and all that connectivity

‘Our aim is to ensure that all our suppliers of phone components demonstrate ethical labour practices, maintain high standards of health and safety, and treat their workforce with dignity and respect’ 22

July 2014

Everybody and everything will be connected

will be bound together in a way that simplifies and improves people’s lives.

Nokia see its role in that world as providing intelligent connections, starting with networks but going beyond that to connecting the real and virtual through maps and location intelligence, connecting information to analysis, action and much more.

Social impact and sourcing Suri added: “Our aim is to ensure that all our suppliers of phone components demonstrate ethical labour practices, maintain high standards of health and

WHY NOKIA TICKS ALL THE BOXES

safety, and treat their workforce with dignity and respect.�

Microsoft Mobile suppliers are required to have policies, risk assessments, improvement programmes, procedures and management reviews in place to assure effective management of labour conditions and health and safety hazards.

A total of 98 percent of its direct phone hardware suppliers has a code of conduct in place already and has lately focused efforts on ensuring that its suppliers are effectively implementing their codes and

communicating about them with their workers.

The Microsoft Mobile brand source components, materials and services from suppliers all over the world and expect them to meet its own high standards of environmental and social responsibility. The Nokia Natural Resources Policy, which the company continues to apply, outlines its commitment to ensure that all materials used in its products come from socially and environmentally responsible sources. It is fair to say, Nokia continue to tick all the boxes when it comes to supply chain management.

Lumia 1320

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PROCUREMENT

How to vet suppliers Jane McAuliffe, principal advisor at Optimum Procurement Group, discusses how ‘health checks’ can help organisations take steps to avoid or reduce risk of supplier failure

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July 2014

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PROCUREMENT THANKS TO GLOBALISED, multi-tier supply chains operating in economically challenging times, the risk of supplier failure in terms of turnover, supply disruption, customer relations and brand perception has increasingly become an area of concern for supply chain managers.

This concern often goes beyond those who hold responsibility in internal sourcing and supply chain disciplines, and is shared by the finance, operations, engineering and quality assurance teams.

The increasingly complex structure of today’s supply chains often extending to tier three or tier four suppliers provides access to a cheaper, or a particularly sought after product or service to the end consumer.

However, it also serves to amplify the potential for disruption. These subtier suppliers need to be identified and the nature and importance of their role in contract delivery understood at the pre-contract stage. These suppliers are often omitted from an assessment until an issue arises.

In addition to sub-tier suppliers it’s also important that the supplier vetting process targets where it is 26

July 2014

going to make the most impact. Those suppliers representing higher levels of business criticality, reputational impact, complexity or limited supply are where the focus should be, especially where this combines with high value goods or services.

Supplier health checks can proactively help organisations take steps to identify and avoid or reduce the chances of supplier failure. These checks should include: Financial health Assessing the viability of a supplier in terms of its financial stability is crucial.

A strong balance sheet and good cash flow position means that the supplier is better able to withstand variability in

‘The increasingly complex structure of today’s supply chains often extending to tier three or tier four suppliers provides access to a cheaper, or a particularly sought after product or service to the end consumer’

F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E

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PROCUREMENT

Find out if the supplier has control over the direction of its own business revenue streams that may occur.

It is also a good indication of a supplier’s ability in the longer term to execute against investments required to grow its business. Company credit reports effectively provide an evaluation of a supplier’s accounts and more (CCJs, late payment history, industry benchmarks and ratio analysis etc).

Company structure If a supplier forms part of a group of 28

July 2014

‘If a supplier forms part of a group of companies, it is important to establish the nature of any sister companies to ensure that they are not at odds with any aspect of the organisation’s reputation’

HOW TO VET SUPPLIERS

well as the policies and processes to deliver it.

Location Understanding where contracted goods and/or services will actually be supplied from and identifying any risks or impacts that may be associated with a specific location is essential. The difficulty with this particular aspect of a health check is that impacts can come in the form of an unexpected disruption such as natural disasters or even terrorist attacks.

companies, it is important to establish the nature of any sister companies to ensure that they are not at odds with any aspect of the organisation’s reputation, or to identify where financial issues in one company could impact the contracting company.

Furthermore, it is important to understand the nature of any relationship with a parent company to ascertain if the supplier has control over the direction of its own business plan, objectives and investment, as

Value The value of a contract to a supplier could be an indication of the supplier’s attitude and approach to the relationship over time. A customer preference exercise can be carried out to ascertain the relative value of the business against the attractiveness of the account.

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PROCUREMENT

Direct contact with a supplier is important It is possible to work out just how valuable an account is to a supplier by looking at its approach in terms of service and response levels, drive for best price and maximum profit and keenness to lock in. Face-toface dialogue will also help both customer and supplier jointly develop and increase dependency through extracting mutual value.

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Capacity Assessing a supplier’s ability to deliver is also best carried out through direct contact. An information request or site visit should provide you with the information you need to assess a supplier’s resources in terms of staff, technology, equipment and storage to ensure it has enough capacity to handle your requirements and understand how quickly it would

HOW TO VET SUPPLIERS

‘An information request or site visit should provide you with the information you need to assess a supplier’s resources’ be able to respond to these and to other market and supply fluctuations.

Compliance Supplier compliance is about assessing any pre-requisites for contracting with an organisation such as sustainability, environmental commitments, ethical values and CSR. Supplier compliance information should be ascertained at the tender process.

Communication Many highly collaborative supplier relationships share health check information as part of the agreed way of working together. Ongoing partner relationships must focus on fostering growth in trust and shared information through regular and structured communication.

When carried out in a rigorous and consistent manner, the information obtained as part of a supplier health

check process in terms of a complete view of the assessed organisation’s current and future validity as a supplier can then be input into the supplier’s risk profile.

This can then be incorporated into an organisation’s overall risk management process and identification of any issues or opportunities which need to be addressed or simply communicated will provide the insights and information necessary to help maintain a strong and healthy supply chain.

FOSTERING GROWTH WITH SUPPLIERS Many highly collaborative supplier relationships share health check information as part of the agreed way of working together.

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TECHNOLOGY

Satellite Navigation technology: More of a hindrance than a help?

Supply Chain Digital asks advice from leading industry experts about how to overcome the challenges associated with Satnav W R I T T E N B Y: S A M J E R M Y

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TECHNOLOGY THERE HAS BEEN an almost incomprehensible amount of change since the early 1960’s. Half a decade ago we didn’t have ordinary mobile phones let alone smartphones; the first iPad hadn’t even been thought about and England were still waiting to win the World Cup. But it was the sixties where the origins of Satellite Navigation took place. The TRANSIT system was first operational and used by the US military in 1963, and this acted as a pre-cursor to what we now know as the global positioning system (GPS).

Through these technological advances, we have of course seen satellite navigation devices reduced in size and made readily available for personal and company transport- and the supply chain industry has been no different in the uptake of this kit. But how reliable is SatNav? Is it more a hindrance than a help?

Reliability issues Dr Nick Ward of the General Lighthouse Authorities of the UK and Ireland (GLAs), said: “Satellite navigation systems such as GPS provide quick, easy and transportable means of navigation. This has meant 34

July 2014

GPS failure that most of us have become almost entirely reliant on them to get around.

“However, global navigation satellite systems (GNSS) like GPS are far from infallible. GPS signals travel about 20,000 km, so they are very faint when they reach the Earth. They are vulnerable to both accidental and deliberate jamming and spoofing, and unintentional interference, including that from space weather.”

The potential implications of a GPS failure, like that of the Russian GLONASS in April , could have an impact the whole way through

S AT E L L I T E N A V I G AT I O N T E C H N O L O G Y

GPS fails. The General Lighthouse Authorities have been rolling out a ground-based radio backup system, called eLoran, across the UK that will seamlessly take over in the event of a GPS outage.

Rotterdam pilots recently

eLORAN TECHNOLOGY

the supply chain by increasing the chances of accidents, delayed deliveries, environmental pollution and loss of cargo and indeed, lives.

Never is this more the case than in port approach. Shallow waters, obstacles, heavy traffic and the need for manoeuvring make ports the most hazardous areas for vessels.

LORAN, short for “Long Range Navigation�, was a hyperbolic radio navigation system developed in the United States during World War II. It was first used for ship convoys crossing the Atlantic Ocean. eLoran is derived from this old system, but uses solid-state transmitters, precise timing (using atomic clocks) and a data channel to provide correction and integrity messages. Modern eLoran works in much the same way as GPS but it is an independent and complementary system, offering a navigation system with no failure modes in common with GPS or any other satellite based system.

Possible solution The only way to protect against these risks becoming reality is to implement a back up to GPS that is independent and can seamlessly take over when 35

TECHNOLOGY

The port of Rotterdam, Holland

announced that they are developing a similar system to ensure safe access for ships to one of Europe’s largest port. These systems have wider applications too; for other transport sectors, telecoms synchronisation and timing for energy generation and financial trading.

Effective GPS jammers can be the size of a cigarette packet, are widely 36

July 2014

available online for as little as ÂŁ30 and are capable of causing complete outages across all receivers currently on the market. In contrast, prohibitively large (100 to 150m) and expensive antennas and transmitters would be needed to disrupt the eLoran service even over a limited area.

Ward added: “In order to truly cement safe and efficient navigation

S AT E L L I T E N A V I G AT I O N T E C H N O L O G Y

‘Rotterdam pilots recently announced that they are developing a similar system to ensure safe access for ships to one of Europe’s largest port’ from the beginning of the supply chain right through to the end, wide international cooperation is needed to roll-out complementary backup systems around the world.”

Top 10 SatNav disasters With those comments in mind, SCD has detailed the top 10 SatNav disasters of recent years.

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TECHNOLOGY

Norfolk taxi driver 10 Cheltenham and Gloucester worker’s Christmas day trip to Lille in northern France was made considerably shorter after the driver first took them to a village of the same name in Belgium, 98 miles away.

9 A Norfolk taxi driver was left with his trousers rolled up and fish swimming around his cab when he ploughed into the River Nar, upon his GPS’ advice.

8 An Austrian limousine driver piloted his luxury vehicle down a flight of steps after his GPS system told him it was OK to do so.

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7 An American trucker was jailed for 10 days after he drove his chemical tanker down a road with a 10-tonne weight limit, reminding us to always trust your instincts rather than your sat nav.

S AT E L L I T E N A V I G AT I O N T E C H N O L O G Y

6 A notorious gang of bank robbers were arrested and linked to several crimes in Hampshire as they used their sat nav devices to navigate their way to destinations, and it was used as evidence.

5 A Belgium woman left her home to pick up her friend at a nearby station in Brussels. It was not until she arrived in Zagreb, Croatia, a whole two days later that she realised she was no longer in Belgium.

4 A man was left teetering on the edge of a 100ft West Yorkshire cliff after trusting his device which said the footpath he was driving on was in fact, a road.

and forced to sleep in his vehicle until a rescue team spent six hours towing the lorry back up the road it came from the next morning.

1 The driver of a £96,000 MercedesBenz got a surprise when she blindly followed directions on her GPS unit and plunged straight into the ironically named River Sence in Leicestershire.

Luckily nobody was injured, although the car was a write-off More information about the General Lighthouse Authorities of UK and Ireland can be found at http://www. gla-rrnav.org

3 The Earl of Spencer’s daughter was mistakenly taken to Stamford Bridge, North Yorks by a taxi driver and missed Chelsea’s home match against Arsenal as a result.

2 Unwittingly following his sat-nav, a lorry driver delivering soft drinks in Somerset turned his 13 tonne HGV down an alley then found the truck wedged in between an estate agents and a house. He was unable to reverse 39

TOP 10

TOP10

Air Freight Companies Here is the breakdown of the world’s top 10 air freight companies, where the figures involved are almost too large to comprehend Written by: Sam Jermy

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TOP 10

10

British Airways

British Airways World Cargo has recovered from a three-year consecutive decline in freight traffic from 2006 to 2008 and is now working its way back up the list of top global air freight companies. BA carry almost a million tonnes of freight, mail and courier shipments every year to 200 destinations in more than 80 countries.

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09

China Airlines

China Airlines, established in 1959, currently own 21 freighters and have consistently been in the top 10 air freighters in the past decade. However, they have slipped down the list in recent years. Last year they launched a codeshare service with Russia’s Transaero Airlines and Hawaiian Airlines.

A I R F R E I G H T C O M PA N I E S

08

Singapore Airlines Cargo

SIA Cargo offers more than 900 flights a week from its Singapore hub at Changi airport. Linking more than 65 cities in over 30 countries across six continents with its fleet of dedicated B747400 freighters and 100 wide body passenger aircraft.

07

Lufthansa

The airline saw an increase in capacity sales to nearly 72 per cent in the first three months of 2014 – an exceptional result compared to the rest of the air freight market. It has also increased its capacities by 1.6 percent in the first quarter this year.

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TOP 10

https://plus.google. com/u/0/+KoreanAir_KE/posts

05 06

Korean Air Cargo

Korean Air was founded by the South Korean government in 1962 and long-haul freight operations were introduced nine years later.

Icheon International Airport serves as the international hub and with a fleet size of 153, flying to 116 worldwide destinations, Korean Air is certainly one of the big-hitting air freight companies.

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July 2014

Cathay Pacific Airlines

The Hong Kong based air cargo service, which started all the way back in 1946, have consistently enhanced its freighter fleet in recent years. No less than six new Boeing 747-400 “Extended Range Freighters” and 10 new-generation Boeing 747-8F freighters were acquired by the company since 2008. The Cathay Pacific Cargo Terminal was also built in 2011 at an estimated cost of £40 million, confirming its clout in the air freight industry.

A I R F R E I G H T C O M PA N I E S

04

Emirates

According to its official website, Emirates’ 218-strong fleet is one of the youngest in the skies, now serving 142 destinations in 80 countries on six continents.

In October 2013, Emirates SkyCargo took delivery of its tenth Boeing 777F, bringing its fleet to 12 freighters. Scheduled freighter services now operate to 51 destinations in 44 countries.

A solid top four spot for this company.

03

DHL Aviation

A division of DHL Express, which in turn is owned by Deutsche Post DHL, comprises of five main airlines and claims to be the global leader in air freight. Carrying 12 percent of the worldwide market, it also says that is more than twice as much as their nearest competitors.

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A I R F R E I G H T C O M PA N I E S

02

UPS Airlines

UPS Air Cargo has been operating since 1982, and in that time it has serviced shipping and logistics functions to 727 airports which covers just about every country in the world. With over 20,000 employees and net revenue of ÂŁ8.9 million in its supply chain and freight arm, UPS is a mammoth air freighter.

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TOP 10

01

FedEx Express

It might not come as a surprise to see FedEx Express occupy first place on the top 10 global air freight list once again. Delivering to more than 220 countries that consist of more than 90 percent of the world’s gross domestic product, FedEx has an unmatched position in the market.

So much is the extent of its air freight operations, FedEx is in the top five largest aircraft fleets in the world. Founded in 1971 as Federal Express Corporation, it has grown into the leading transportation company and raked in $27.2 billion in revenue last year.

For pallets of freight weighing from 151 pounds to 2,200 pounds, FedEx Express Freight provides 100 percent coverage to any US location in one to three business days. International express freight offers priority service to 50 countries in one to three business days, with economy service to additional locations, usually within five business days.

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A I R F R E I G H T C O M PA N I E S

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TTS Port Equipment’s dynamic team brings operational excellence The global enterprise which specialises in marine and offshore equipment solutions and services combines its group strength with individual expertise to offer quality products Written by: Sam Jermy Produced by: Craig Daniels

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TTS PORT EQUIPMENT

T

TTS NMF Heavy Crane

Aerial port

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July 2014

TS Port Equipment has emerged as a valuable business unit within its group having secured a number of lucrative contracts, including a deal worth in excess of $10 million with the Global Container terminal in New Jersey.

These two main projects have helped the TTS Port Equipment company build up a turnover of around €15 million, despite only being established in 2005 under the worldwide Group’s port and logistics division. Parent company, TTS Group ASA, has more than 1,000 employees across 13 different countries.

Michel Lyrstrand, Senior Vice President of Business Development, said: “We have been concentrating our efforts on two main areas Europe and USA - and this has proved fruitful.

“It takes time to get established in the container terminal business, it is a very large business and a global one at that too. With a limited number of people you are not able to cover the complete earth.

“But our strategy of focusing on specific geographic areas and major influential companies is working for us.”

The subsidiary based in Gothenburg, Sweden, signed an order to supply material handling equipment which included 10 self-loading trailers called LTH70 translifters, along with 115 cassettes for the new DP World London Gateway Terminal with delivery completed in summer last year.

More recently, a contract was signed so TTS

EUROPE

New Jersey terminal

Port Equipment can offer container handling equipment to Global Container Terminal, the closest container terminal to the New York and New Jersey harbour entrance.

It has been decided to use the TTS cassette system and translifters for the transportation of goods from the container port to the intermodal terminal. This contract is due for completion in June 2015.

Background and focus Historically, Gothenburg had a very large shipbuilding industry, which started in the 1950’s, and there are still marine and engineering companies based in the area, including TTS’s own Marine AB division Centre of Excellence.

“It takes time to get established in the container terminal business, it is a very large business and a global one at that too” – Michel Lyrstrand, Vice President Business Development

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TTS PORT EQUIPMENT

Cargo handling

Roll Cassette 54

July 2014

TTS Group ASA is today headquartered in Bergen, Norway, and made up of four separate divisions; Port and Logistics, Marine, Offshore Handling and Service with each having its own business units and companies within those divisions.

Lyrstrand has carried out various roles for the company which he joined 22 years ago, epitomising the long-term ideology TTS has with its staff at all levels.

Explaining the emergence of the company and how it stands in today’s market, he said: “In 1996 we started to identify cargo handling products that would have potential for a new business, and in 2005 we actually started up a new company called TTS Port Equipment.”

EUROPE

The company merged together with NavCiv Engineering AB which specialised in linkspans and passenger gangways. So from the beginning, there has been two specific but different business areas; cargo handling equipment onshore and then linkspans and passenger gangways.

Linkspan is the short connection between the vessel and the terminal. These are especially used in the UK as the regular high tides mean this equipment is often needed to act as a bridge to ensure a smooth transition onto the vessel. The Linkspan at Harwich International and many other ports in Europe and beyond has been supplied by TTS. In 2004 the company acquired Finnish Liftec Oy, which specialises in cargo handling

“In 1996 we started to identify cargo handling products that would have potential for a new business, and in 2005 we actually started up a new company called TTS Port Equipment” – Michel Lyrstrand

w w w. t t s g r o u p . c o m

55

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TTS PORT EQUIPMENT

EUROPE

equipment for roll-on, roll-off terminals (RoRo) as well as industry applications. It now uses manual and automated technology in container and RoRo terminals.

Employees nurtured The company has an internal development programme for all employees and an executive programme for TTS mangers, as well as yearly appraisals and a clear career progression plan.

Management encourage the employee to take courses and develop in different fields.

“We use the design office as a school, then we pick the young employees from there if they have a special talent, whether that be installation management, project management or even sales,” said Lyrstrand.

Key Personnel

Michel Lyrstrand Vice President Business Development Björn Asplind Vice President Sales and Marketing

The firm has 15 years of experience in China

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TTS PORT EQUIPMENT

Trucks are well managed at the ports

Port of Singapore

Xxxxxxxxxx TTS Liftec, Finland

58

July 2014

APMT Port

EUROPE

TTS also gives opportunities for employees to work between the companies in various different countries. All production is made abroad, so engineers will often have the opportunity to travel.

Lyrstrand added: “TTS is an attractive, global player in the industry and young engineers like this. We find it easy to source good engineers.

If you do not like travelling, a career within TTS Group is not for you.”

Closer Integration In February, the TTS Port Equipment and the Logistics division were merged together with the Marine division for a closer professional partnership. TTS Port Equipment is still a separate company but the two are working together with the original Gothenburg marine business unit for greater synergy.

Lyrstrand explained: “What has happened is Port Equipment will be concentrating on passenger gangways and linkspan products, while TTS Liftec in Finland will be concentrating on all land-based cargo handling equipment.”

Logistics division

Land-based cargo extended trailer

“TTS is an attractive, global player in the industry and young engineers like this. We find it easy to source good engineers. If you do not like travelling, a career within TTS Group is not for you.”

– Michel Lyrstrand w w w. t t s g r o u p . c o m

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TTS PORT EQUIPMENT

DP World and Hutching have a strong client relationship

“What has happened is Port Equipment will be concentrating on passenger gangways and linkspan products, while TTS Liftec in Finland will be concentrating on all land-based cargo handling equipment” – Michel Lyrstrand

60

July 2014

The four main port operators DP World, APMT, Hutching and Port of Singapore all have a strong client relationship with TTS Port Equipment, as they equate to around 60 percent of the world’s port terminals and are well connected to ship owners such as Maersk.

The firm has been focusing on two different products; manual systems based on trailer cassettes and an automated system with Automated Vehicle Guides.

Lyrstrand said: “London Gateway is a project more or less owned by DP World, they looked into our technology and are using our manual trailers; the terminal tractor used to transport containers.

“We’ve worked very closely with Terberg DTS which is supplying the terminal tractors. TTS Finland supplied the cassette trailers together

EUROPE

Company Information INDUSTRY

Marine and Offshore HEADQUARTERS

Bergen, Norway FOUNDED

1966 EMPLOYEES

Not disclosed

with TTS Port Equipment which has designed them. It’s a culmination of two TTS companies working together.”

Most of the manufacturing is done in China, but is also carried out in other countries such as Poland and Croatia, with some production like assembly work coming from Finland.

The firm has 15 years of experience in China, and today has three companies working together in joint ventures within the Asian country. For the future, new geographical market areas will play an increasingly important role for the company.

There is also a quality control centre in Shanghai, further highlighting how TTS Port Equipment can utilise its Group’s strength, but at the same time enjoy individual expertise.

REVENUE

Not disclosed PRODUCTS/ SERVICES

Marine and offshore equipment, linkspans, passenger gangways

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Danya Foods

driving growth through supply chain professionalisation The Middle Eastern subsidiary of dairy co-operative Arla Foods is committed to total supply chain efficiency, and in turn providing increased value for money Written by: Sam Jermy Produced by: Craig Daniels

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D A N YA F O O D S

D

Surveying the new site ready for the new equipment facilities

“What sets us apart here is we have this team spirit; it encompasses the entire organisation” – Thomas Nordholt, Regional Supply Chain Director at Danya Foods 64

July 2014

anya Foods Co. Ltd is enjoying considerable progress within the Middle East and North Africa regions, and is planning substantial investment to enhance its success in the dairy products industry.

Based in Northern Europe, the global dairy giant Arla Foods, producer of the recognizable Lurpak butter, is the parent company of Danya Foods. There is DKK 35 Million worth of investment earmarked for more automation in the production processes, as well as warehouse capacity expansions and automation.

Further investments were approved last year to specifically invest in training, systems, process optimisation and production capacity, and the company envisages investments to at least remain the same going forward.

Thomas Nordholt, Regional Supply Chain Director at Danya Foods, explained how the company has adopted new technology to help the firm become more efficient. He said: “In the last 12 months Danya has gone from manually operated to almost fully automated production.

Part of our main investment is purely being able to produce more processed cheese.

“Another part of it is to automate existing production facilities to reduce conversion costs. For instance, where the company had manual labourers empty pallets, wash glasses before the filling lines, fill boxes and cartons, then pack them onto pallets it now has robotic machinery for all of this.”

MIDDLE EAST

A conveyor belt now brings finished items from production to the distribution part of the site, and there are robots which not only bring pallets into the warehouse but even shrink-wraps the finished products being loaded for distribution. “It has been a fantastic journey. In this coming year our focus will be to increase capacity even more while reducing time and cost to market.� added Nordholt.

Progressiveness Danya prides itself on having achieved a doubling in production volume at the same time as reducing costs. Apart from the worldwide Lurpak butter from Arla, one of the big brands in the Middle East is called Puck. This brand offers processed cheese, cheese triangles and slices,

Preparations to install the new equipment

Construction of the new production building

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D A N YA F O O D S cheddar, processed cheddar, processed garlic cheese, cream cheese, thick cream, sterilised cream and condensed milk.

It also imports 20kg blocks of cheese from Europe, mainly Denmark. Then it is shredded and sold as shredded Mozzarella under the Three Cows and Puck brands. Saudi Arabia counts for about 50% of Danya business in the Middle East. There is also a vast market in Africa, but it is more skewed towards products such as the Dano milk powder brand. It is a widespread market too; in North, East and West Africa.

Operations were established in Saudi Arabia in 1977 and Danya now has 13 depots, 3 warehouses, and 420 vehicles which is a mix of sales vans, trailers and smaller vehicles.

The company head office is in Dubai, and

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These services range from logistics and documentation services to price risk management.

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D A N YA F O O D S

Laying equipment’s foundation

“There is a never ending demand especially for industrial size processed cheese, that’s why we are investing heavily to help reduce cost per kilo and increase capacity” – Thomas Nordholt

68

July 2014

Scrambling to install equip

Riyadh is the location of the production site for both Danya and a selection of Arla items sold within the Middle East and Africa.

Rationalising of its local transportation to, from and between depots within Saudi Arabia and abroad and using third party logistics solutions are avenues the company are exploring.

Nordholt said: “Because of the sales growth of our main products there is a never ending demand especially for industrial size processed cheese, that’s why we are investing heavily to help reduce cost per kilo and increase capacity.”

The dairy producer knows there is a direct correlation between volume output to the costs of materials, man-power and the effort

MIDDLE EAST

pment

Up and running

that goes into a finished product. Therefore everything is geared towards making the whole business process gain more fluidity.

The group supplies products to all Middle Eastern countries and as an importer of Arla Foods finished goods from manufacturing sites in Europe, Danya is also a distribution centre for its parent company in Saudi Arabia to the region. There are several distribution set ups in other Gulf countries but it has a presence in every country in the region.

Strategic Vision and Team Spirit Minimising disruption in the supply chain and maximising profitability, without compromising

Equipment

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D A N YA F O O D S excellent value for money to the end customer has not been the sole focus for Danya.

A key feature is its multifunctional, multinational group of employees who are all working towards the company’s long-term strategy of increasing volume by at least 20% per year by 2020 while at the same time continuing to reduce the cost base. The growth will be a mixture of organic growth, adding new products to the line and may also include mergers and acquisitions if such opportunities surface.

Nordholt said: “Last month we again broke our volume and cost production record for the 12th consecutive month and immediately I took the team out to celebrate.

“There are always rewards and what is unique in my opinion is that we give high

MIDDLE EAST

Working late

FAT testing kit

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D A N YA F O O D S

Staff outing: The Supply Chain SWAT team

“It has been a fantastic journey.

In this coming year our focus will be to increase capacity even more while reducing time and cost to market” – Thomas Nordholt

72

July 2014

achievers an opportunity but also those hardworking people who may not come with a very high end education or a very fancy looking resume in terms of their work experience.”

This inclusiveness in encouraging the careers of all people no matter what background, education or background is a focal point of staff recruitment and retention. One prominent example includes one gentleman who started working at Danya as a receptionist one year ago; today he is in charge of all direct deliveries to all the main supermarkets in Saudi Arabia.

“Simply by delivering results it immediately gets noticed at the top end of the organisation.

It’s those people we are willing to invest in hard and fast. We give them opportunities

MIDDLE EAST

to succeed and we value their ideas and contributions.” commented Nordholt.

He explained: “What sets us apart here is we have this team spirit; it encompasses the entire organisation and that means if a labourer from the warehouse really believes he has a good idea or suggestion, he is not afraid to walk into the general manager’s office proposing his idea because he knows we will be very receptive.”

There is a government programme called Saudization to employ at least 20% local people in companies such as Danya, and Danya has been quick to support the government on this. Increasing automation created a need for more highly-skilled employees with Nordholt recognising many Saudi’s have a high skillset in robot technology and programming, therefore naturally increasing demand for those people.

Asked what sets Danya aside from competitors, Nordholt said: “Our agility in the supply chain is incomparable. Objectively we are fairly small compared to some of our competitors here but they are very heavy organisations whereas we are extremely good at getting everyone to buy into a project instantly and delivering the results in a short time.”

A perfect illustration of this operational overhaul is the fact Danya now saves 97% of the total packaging material used for its industrial cheese whilst it can also fit 15% more volume on the reusable pallets; another pleasing milestone in the company’s long-term, progressive vision.

Company Information INDUSTRY

Dairy foods HEADQUARTERS

Dubai FOUNDED

1977 KEY PEOPLE

Thomas Staerk Nordholt, Regional Supply Chain Director EMPLOYEES

900 REVENUE

+800 mio SAR PRODUCTS/ SERVICES

Dairy foods, processed cheese, cheese blocks, triangles, cheddar, mozzarella, condensed milk

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UTi Zimbabwe leads the way in Zimbabwe The Zimbabwean branch of supply chain solutions giant UTi has risen to the top in the country based on its global network, commitment to staff excellence and unrivalled customer service Written by: Joel Levy Produced by: Dennis Morales

75

UTI ZIMBABWE

T

UTi has 313 offices and 245 logistics centres across 59 countries

UTi truck

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July 2014

he Zimbabwean arm of supply chain giant UTi Worldwide has gone from strength to strength in the country, leveraging its parent company’s global network to excellent effect to provide an unrivalled set of services to its clients.

Since entering the region in 1980, the company has weathered political and economic unrest to establish itself at the top of Zimbabwean supply chain solutions, providing quality services to clients in the mining and energy, retail, hitech/electronics and pharmaceutical sectors, amongst others, delivering to all major continents worldwide.

Air, road, rail and sea freight forwarding, contract logistics, distribution, customs brokerage, managed transportation services, supply chain analysis, warehousing and consulting are the company’s core services, much appreciated by such high-profile clients as Mimosa Mining and the multinational telecoms group Econet Wireless.

UTi is also a successful exporter of tobacco and cotton on behalf of its Zimbabwean clients.

Headquartered in the capital Harare, where it also has a 6,000 square metre-warehouse, the company has further branches in all major Zimbabwean cities and ports including Bulawayo, Mutare, Beitbridge, Chirundu and Nyamapanda, putting together a strong network that mirrors the approach implemented on a global scale by its parent company.

AFRICA

Moving contents inside the warehouse

UTi Worldwide Proud of the success to-date, Regional Consultant for International Trade and Custom, Timothy Nyanzira, believes access to UTi Worldwide’s network has been crucial to its success in Zimbabwe.

“One of our major strengths is our global existence, our network around the whole world,” he said. “That is something we have over some of the small players who only exist in Zimbabwe and whose contractual network arrangement with other countries does not necessarily work.”

With 313 offices and 245 logistics centres in 59 countries, the parent company develops and implements client-centric, global solutions for international companies with unique supply chain requirements.

“One of our major strengths is our global existence, our network around the whole world” – Timothy Nyanzira, Regional Consultant for International Trade and Custom

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UTI ZIMBABWE

Two employees load a truck

By integrating IT platforms and developing a UTi-client team approach to the planning and implementation process, its supply chain solutions maximise efficiencies and costeffectiveness.

By the same token, Zimbabwe is a key location for the worldwide group, and an important part of its African operations, bordering the similarly important South African region.

Staff give the company a distinct advantage 78

July 2014

Skilled workforce Equally important to UTi Zimbabwe becoming the country’s market leader in freight forwarding is the input of its 86-strong workforce, as well as its own efforts to continuously develop their considerable talents, both of which Nyanzira believes gives them the edge over rival firms.

AFRICA

Highly skilled workforce

He explained: “Our staff competence and skills I’d say is another major competitive advantage we have over other players. What we do besides the attributes or training those individuals have externally.

“Every month there is online training for all our staff to make sure they all remain up to speed in terms of the global trends that are taking place, and also to equip them with new skills to be able to assist or handle any business or any type of transaction.”

IT Investment A recent major $250m investment from UTi Worldwide in the form of a new IT system, Oneview, will greatly benefit the Zimbabwean branch’s employees and customers alike,

86 Number of workers employed in freight forwarding w w w. g o 2 u t i . c o m

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UTI ZIMBABWE

UTi Sun Couriers van

improving efficiency and providing instant access to important information.

Nyanzira said: “This is a huge investment that the shareholders have undertaken the world over, and one of the advantages of the system is that it will make sure that all the information for a particular client is readily available.

“The customers themselves will also have visibility; just with a click of a button they will be able to tell where their shipment is, and all the billing information will be available too. It will improve efficiencies and focus a lot on the customer.”

This customer focus is a priority for UTi

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Checking placement of product in warehouse

throughout its dealings with clients. The company is committed to maintaining excellent communications throughout its processes and ensuring that all needs are met and any issues are addressed efficiently.

Nyanzira explained: “We are an open-door type of organisation where the customer relationships are managed from operator right through to the manager. Every manager has a target of actually meeting and discussing with five customers every week to ensure the right level of service and that we are delivering on our promises to the customers.

“If there are any concerns, they are addressed immediately before they grow bigger. And all our supervisors and operators interface with customers, often on a daily basis, over

“All our supervisors and operators interface with customers, often on a daily basis, over the phones, meetings and through email communication” – Timothy Nyanzira

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UTI ZIMBABWE

UTi truck

the phones, meetings and through email communication.”

UTi Office

Operating forklift to sercure pallet 82

July 2014

CSR Having enjoyed success in Zimbabwe itself, UTi is committed to sharing this success with the local communities, taking an active role in the company’s worldwide corporate social responsibility strategy, ‘Delivering Better Live’.

Recent programmes have included the construction of a new hospital in the Goromonzi district, already completed and commissioned, and a school in Tarua, close to Harare, is currently under construction.

Zimbabwean prospects UTi’s strong performance in Zimbabwe is set to be further bolstered in the coming years by a strengthening of government policy.

AFRICA

Nyanzira sees some positive economic growth, and made clear that more robust improvement is expected in the coming years as the government moves to encourage overseas investment and take full advantage of the nation’s untapped mineral wealth.

“The government is actually trying to change some policies and shift in terms of indigenisation laws because they have seen that it is currently not working at all,” he said. They have taken a soft stance and now the ministry responsible for that legislation is having a sector-by-sector stakeholder discussion to try and find the best way forward.

“Because of this softer stance, I’d like to believe that they will come up with a blueprint to attract further direct foreign investment and other forms of investment.”

On the back of this, UTi can expect an even brighter future, and the growth brought by foreign investment will be complemented by that of company shareholders in the form of serious acquisitions that Nyanzira believes will add to the Group’s existing strengths.

He concluded: “I would like to think that we will have growth of about 20-25 percent within the next five years because what I see happening is a lot of changes in terms of the policies in the country and that will stimulate and attract further investment.

“We have the people, the resources and the infrastructure to attract this investment.”

Company Information INDUSTRY

Freight forwarding HEADQUARTERS

Harare FOUNDED

1980 EMPLOYEES

86 REVENUE

Not disclosed PRODUCTS/ SERVICES

Air, road, rail and sea freight forwarding, contract logistics, distribution, customs brokerage, managed transportation services, supply chain analysis, warehousing, consulting

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Halterm Limited

Halterm’s CAD$20 million investment in two new container cranes is closely allied to a drive for growth, performance and process ex

CEO and Managing Director of Halterm Container Termina 20 million dollar investment in two new container cranes an improvement to match customer expectations.

Written by: Lindsey Ryan

Produced by: Michael Magno

xcellence.

al Limited, Ashley Dinning, discusses the nd the company’s drive for continuous

85

H A LT E R M L I M I T E D

Established in 1969, Halterm Container Terminal Limited has made a name for itself offering fast and supremely flexible service to global shipping line customers, the masters of the largest containerships in the world. Halterm Limited is located in Halifax, Canada, a harbour with natural deep water and a perfect location to handle ultra large container ships with a terminal capability as yet unmatched by other east coast ports.

Ashley Dinning, the current CEO and Managing Director of Halterm Limited, has been in the industry for 37 years and has worked all 86

July 2014

over the world. With his Business Degree, focused on Transport & Logistics, and an MBA in Maritime Management he has studied at Harvard and UCLA, bringing a deep industry knowledge and expertise to the role at Halterm.

Sustainable Investments To stay ahead of the competition, Halterm Container Terminal Limited has spent 20 million dollars in the last year to install two new container cranes. These cranes can handle the largest container ships in the world and set new standards in safety and energy efficiency. They

CANADA

are also cheaper to maintain.

With ships steaming slower to conserve fuel as prices continue to rise, ports are under increasing pressure to provide faster turnaround times and with these new cranes, Halterm is in position to discharge and load vessels at the rate of 30 containers per hour per crane, or a massive 120 containers per hour with all four cranes working simultaneously.

Technological advances have also played a role in the success of Halterm. Dinning explains that every truck that arrives with a container passes through a building lined

with camera arrays designed to capture images of the truck and its cargo from every angle. The cameras also identify the container number and the license plate of the truck so that when the truck moves forward to the Scale, or weigh station, Halterm’s terminal operating software has already updated the container records allowing for faster processing at the gate. “The unique thing for us is that while in other terminals here in Halifax and across North America, all the cameras are sitting out in the open, ours are protected by purpose-built shelters, so when it is raining or snowing our w w w. h a l t e r m . c o m

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H A LT E R M L I M I T E D

Ron Twohig Operations Manager

cameras and equipment maintain the efficiency of our gate processes and the trucks continue to roll, despite bad weather,” Dinning explains, “This sets us apart from our competition.”

Allied to the physical redevelopment of its gate processes Halterm has also installed brand new terminal operating system software so that the company and its customers can manage the container inventory and track crane and truck movements in the yard more easily. With the new software, Halterm is operations ready, offering guaranteed berth, crane and labour to its customers whenever a ship arrives. To help keep to this guarantee, an extensive preventative

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maintenance program is in place and equipment is kept at a high state of readiness to meet customer demands.

The company has a very quick turnaround time for trucks in the container yard as well, averaging 18-20 minutes from the time of arrival to the time of truck departure. Compared to reports from other terminals in North America, where average truck turnaround time might be held at about an hour, Halterm offers customers clear advantages.

People Management and Safety In addition to implementing a series of changes to how Halterm monitors its operations, Dinning has also expanded the employee pool to strengthen the overall skill set of the company. “I’ve created new positions here within the facility and brought leaders in their fields from all over the world to fill those positions,” Dinning continues, “By bringing in a mixture of those with talents among the existing skill sets and those with alternative experience we are actively developing our team and can actually instill new methodologies and operating practices here.” Halterm is proud of the wealth of experience among its many longservice employees and together with the mix of new people that have worked all over the world, has a great formula for supporting service delivery to its customers.

Safety is also a key focus of the organization.

Dinning describes one particular piece of equipment Halterm offers to increase safety in the

Ashley Dinning CEO Managing Director

“By bringing in a mixture of those with talents among the existing skill sets and those with alternative experience we are actively developing our team and can actually instill new methodologies and operating practices here”

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H A LT E R M L I M I T E D

Snow Clearance

workplace and on the highways. He states, “We don’t want a truck leaving here with snow and ice on top of the container because it could present a real hazard if it starts to break loose as the truck is moving. To address this we have installed a snow clearing machine that truckers can use as they are departing the terminal to plow snow and ice from the roof of the container so when it joins the highway it’s as safe as it can possibly be.”

Halterm continues to focus significant effort on developing its safety culture and promoting safe working practices on the waterfront.

90

July 2014

CANADA

Continuous Improvement Halterm continues to grow because it maintains a positive relationship with the waterfront Union in Halifax, the International Longshoremen’s Association, and Dinning states that “they also value our mutual customers and are focused on understanding and meeting customer expectations.” In the last few months, the top three shipping lines in the world, Maersk Line, CMA CGM and MSC have all looked to develop larger operating alliances and Halterm is a main operating facility for two of these carriers, Maersk and CMA CGM. The company also partners with ZIM Integrated Shipping Lines, Eimskip and Melfi for mainline operations, supported by Oceanex Shipping and TMSI on the critical regional trades.

Over the next three years, Dinning forecasts more than 30% growth for the company. He explains that “our three key business goals are business growth, aggressively creating commercial opportunities to generate sustainable long term value, process excellence, driving cost out of the business through operation efficiency and strategic investment, and driving performance, developing and maintaining a highly skilled commercially oriented team with a sense of urgency and a desire to play to win.” Halterm encourages its’ workforce to employ these goals and use them as their drive to provide the quality service the customers expect.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Halifax, Canada FOUNDED

1969 EMPLOYEES

150 PRODUCTS/ SERVICES

Stevedoring; Warehousing; Logistics

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BTX Global Logistics Technology and innovation d success at BTX Global Logis

By focusing on its core values of technology, innovation an Global Logistics has achieved success for more than 30 ye Written by: Abigail Phillips Produced by: Jason Wright

drive continual stics

nd people development, BTX ears

93

BTX GLOBAL LOGISTICS

B

TX Global Logistics opened its doors in 1980 as a fullservice logistics provider specializing in heavyweight and time-sensitive shipping by air and land as well as shipping by sea.

Since its inception, the company has been successfully fulfilling its profile and today has a loyal and abundant customer base to show for it. BTX takes great pride in its technological know-how and strongly believes that its application of modern systems and processes has put it at the forefront of the logistics industry.

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at BTX. In fact, President Ross Bacarella insists on it every day.

“My management style is heavily influenced by my upbringing. I never look at the wonderful things that we do at BTX but instead the areas in which we can actively improve. ” Not one to rest on his laurels or rely on past success, Bacarella has fostered a culture of open communication and continuous improvement at the company. “We have performance standards in place and everybody is aware of what is expected of them,” he says.

“Communication is the cornerstone of our success, and

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with that comes frequent analysis of our performance using the specific KPIs that define us. We continue to improve and enhance our service offerings by meeting with department heads regularly.

Each division of the company is in tune with one another, sharing best practice, news and ideas for improvement and growth.”

People Management BXT Global Logistics employs in excess of 200 employees and yet Bacarella approaches people management with the individual in mind. “I whole heartedly believe in

treating people with respect. My aim is to have employees who feel good about for whom they work and to feel the value of what they are doing.”

As part of this, Bacarella offers his employees continual training and opportunities for personal and professional growth. “Training is one of the areas that we have targeted for our employees in 2014.

We aim to keep everyone in tune with the bigger picture. We already provide annual training meetings for sales and operations, along with frequent web sessions. We are also in the process of creating w w w. b t x g l o b a l . c o m

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C O M PA N Y N A M E

and building more training videos and a podcast library that will be available on demand.”

When it comes to management, as aforementioned, Bacarella draws on the experience of his own upbringing to lead his people. “I was raised in a very active sports environment,” he recalls. “Team to me means more than any one individual, so 96

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collectively, we’re stronger.”

“At BTX everyone from the individuals on the ground to the VPs and the executive team collaborate on projects. We want to make sure that we’re in tune with one another and that everyone has a voice. We make decisions together,” he says.

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Looking to the Future At BTX, training and development isn’t limited to its own borders, but also extends to local schools and communities. In the last few years the company has taken part in “FUTURES”, a program based at Bacarella’s high school Alma Mater, St Joseph. A two-day agenda is set with a group of seniors being introduced to the various departments of the company. The second day comprises of on-site field trips to a seaport or an

“We have performance standards in place and everybody is aware of what is expected of them” – President Ross

Bacarella

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SUPPLIER PROFILE

JRS TRUCKING SERVICE INC.

JRS Trucking Service, Inc operates a US Customs Bonded Warehouse in JFK International Airport and Philadelphia International Airport as well. JRS Trucking Service, Inc is a full service handling agent at JFK. JRS Trucking Service, Inc is one of the first third party vendors that are a cargo screening facility at JFK. JRS Trucking Service, Inc is an expert in the handling of Pharmaceutical transportation air and ocean.

JRS Trucking Service, Inc. operates a pick-up and delivery service in the New York metropolitan area including the five boroughs of NYC Nassau & Suffolk Counties in Long Island, New York as well as New Jersey and Philadelphia areas.

JRS Trucking Service, Inc also runs daily shuttles to Boston and Philadelphia everyday and offers full truck load service in the Northeast Region.

JRS features a Warehouse Management System to improve the movement and storage of materials within our warehouse and process the associated transactions, including shipping, receiving, putaway and picking. This WMS will eventually give our customers more accurate detail about their shipment and allow us to more accurately handle our Logistics.

Website: www.jrstruck.com

BTX GLOBAL LOGISTICS

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airport cargo facility, in addition to a visit to one of the company’s local fulfillment operations.

“I believe that this program comes at a key point in the lives of our future leaders. It’s an opportunity for BTX to showcase what we do as a company in what can be perceived as a complex industry, but also to highlight how it all connects—and how important relationship building is,” says Bacarella.

extremely important. It is the same when someone is on our website or researches BTX online: We need to impress quickly,” says Bacarella.

The new website is fully optimized for use on a desktop, a tablet PC or even a smartphone and still provides BTX customers with a robust, onthe-go tracking system. As Bacarella explains, “The website offers our shipping clientele an informative and dynamic site, as well as a web based software suite where they can ship, Technology and Innovation track, get reports, get quotes online BTX and its commitment to both and on-demand. technology and communication has “It’s a portal where they can helped the company remain ahead handle all their supply chain needs of the competition. In mid-June, BTX in one area. They can manage their launched a brand new version of inventory and they can see their its website that emphasizes those inventory that we are managing in relationships between company, any of our warehouses. We also employees and clients alike. have an e-commerce section of “I cannot speak enough to the the website. Our first priority was to importance of our website. It really is completely meet the needs of our a first port of call in today’s culture. customers,” he says.

Prospective customers have shifted “We really do communicate with from reading through collateral you our key vendors through technology. left behind or some printed piece Customers require information and mailed to them, to researching a we give it to them exactly how they company by its website and the want it. Interactions and interfaces ‘chatter’ online. In a sales call the are optimized to make the process first 30 seconds of that call are that much easier,” says Bacarella. w w w. b t x g l o b a l . c o m

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Remaining True to its Roots BTX Global Logistics will celebrate 34 years in business next year and by-and-large has stayed fast by its founding principles. “Yes, we have added additional services as time has gone by, like warehousing and fulfillment and e-commerce environments and specialized services that we didn’t offer way back when. But on the whole we have focused on the core service lines of air and sea freight for 34 years,” says Bacarella. “With this in mind, we have become really good at what we do.”

“The transportation industry is always changing. We must continue to be a chameleon and change with the times. Those that do not will fade away. Companies need to remain mobile and flexible in how they do business. Five years ago, is not what we are doing now, nor is it what we may be doing five years from now. E-Commerce is a great example of this.

“Longevity and stability create success. We will get there if we stay true to ourselves and be the best of what we are. It’s not about becoming an institutional service provider. We are a top tiered carrier that delivers what it promises: a high level of service at a fair price,” concludes Bacarella.

Company Information INDUSTRY

Transportation and logistics HEADQUARTERS

Connecticut FOUNDED

1980 EMPLOYEES

200+ REVENUE

$75m+ PRODUCTS/ SERVICES

Domestic, Global, Ground, Sea, Home Delivery, Trade Show, Offshore

https://www.facebook. com/BTXGlobal

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John Holland Rail

Building Infrastructure and C

GM of Operations Richard Stewart discusses John Holland the corporate culture that helps the business and its comm Written by: Sasha Orman Produced by: Nick Ledue

Community

d Rail’s most recent projects and munities thrive

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JOHN HOLLAND RAIL

John Holland Rail track services

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hen you think of railways in Australia, you may think of John Holland Rail.

As the owner and operator of 30 percent of Australia’s governmentand corporate-owned railway networks, as well as the owner and operator of the largest and most technically advanced fleet of railway maintenance and construction equipment, John Holland Rail is the largest private operator of the infrastructure in Australia. With specialization in everything from planning and construction to maintenance, John Holland Rail 102

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offers a complete approach to railway infrastructure that sets it apart from the competition.

“I do believe it is a very unique value proposition in the market – there are railway operators, railway maintainers and railway constructors, but there is no other company that offers that full life cycle,” says Richard Stewart, General Manager of Operations at John Holland Rail. “We selfperform, and we have a very large in house engineering and project management capability. We have 2,500 John Holland people working

AUSTRALIA

on railway projects at the moment and another 4,000 subcontractors.

So we are a large employer, and people are really at the center of our values.”

Moving Projects Ahead with Efficiency As a major force in Australia’s railway industry, John Holland Rail’s portfolio is full of complex and vital projects significant to the country’s development – projects like Perth City Link.

“If you’re familiar with Perth, its central business district is basically split right down the middle by its railway lines – Perth Central Station sits between an area called Northbridge and the actual business district of the CBD, and over the years it’s created a bit of a divide in the city,” says Stewart.

With the Perth City Link project, John Holland Rail succeeded in the daunting task of bridging that gap while keeping Perth’s commuters moving in the meantime.

“The Perth City Link project was about sinking a section of the Fremantle rail line underground, so that the land above could be

Richard Stewart

developed, effectively bringing the two parts of the CBD together,” says Stewart. “It was a very complicated project because we had to keep Perth Station and the train network operating all the way through the project. That meant several rail slews to divert the existing railway into temporary lines to open up areas we needed to work in to build w w w. j o h n h o l l a n d . c o m . a u

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JOHN HOLLAND RAIL a new cut and cover tunnel and railway infrastructure underground.

That’s an exciting project, and I think it’s really changing the face of Perth CBD forever for the better.”

Other notable recent projects from John Holland Rail’s portfolio include the Southwest Rail Link to connect new homes in Sydney and prepare suburbs for further development; the $4.5 billion Victoria infrastructure project – Regional Rail Link - that has John Holland completing two of six segments, the Southern Cross

Station and the City to Maribyrnong River sections; and the recently completed Sydney Inner West Light Rail extension, which doubled the size of Sydney’s light rail system by extending it to Dulwich Hill, through the main shopping precinct and Sydney CBD, and eastward toward Moore Park, Sydney’s cricket grounds and football stadium, and the University of New South Wales.

“A key thing to note is that they have been completed significantly ahead of schedule,” says Stewart,

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explaining that the company utilizes an array of efficiency techniques, including modulization and prefabrication offsite, to meet these goals. For its Springvale Road Rail Alliance project, for instance, John Holland Rail engineers were able to condense a projected nine months of weekend work down to a finished project in 20 days backto-back while still maintaining the needed quality of work. As with any industry that can potentially cause disruptions and disturbances in the lives and schedules of everyday citizens, John Holland Rail recognizes the importance of meeting and exceeding schedule projections. “When you’re causing these disruptions to local communities, the quicker you can get out of there and let them get back on with it, the better it is. I think we’re well recognized for achieving that that among all the communities in which we’ve worked.”

Focusing on People Railway construction may be John Holland Rail’s business, but the factor that drives that business is the people behind it. “Our tagline is

‘Powered by People’ – I think that is really the sentiment of our values,” says Stewart. “Innovation and care are two of our core values, and we are really connected to enhancing the wellbeing of all our people.”

The best way to protect your employees is by offering them a safe work site, and John Holland Rail is committed to safety. “We have an unwavering commitment to safety – safety is at the heart of what we do,” says Stewart, noting that the business has developed powerful strategies to meet mandated global safety requirements. “All of our projects must ensure that they are meeting those requirements as absolute minimum standards. Our people are very clear about our expectations in relation to safety, and that is strongly supported by leading indicators.” It is through these strategies that John Holland Rail has reached such achievements as a lost time incidence frequency rate of 0.08 per million man-hours.

Building Communities But this focus on people does not solely apply to its employees, either – John Holland Rail is also w w w. j o h n h o l l a n d . c o m . a u

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Work on the Regional Rail Link in Melbourne is progressing well.

JOHN HOLLAND RAIL committed to positively impacting and improving the communities in which it builds. “Community relations are something we’re very strong on,” says Stewart. “All of our projects have community initiatives embedded in their delivery – things like assisting skills within the local communities near projects we’re working on, working with local community groups on initiatives that they’re looking to implement, and aiding healthcare organizations and local care centers.

We spend millions of dollars per annum initiating these projects and monitoring them as part of our monthly board review.”

John Holland Rail boasts several examples of this community outreach activity, including the work that its staff did at a neighboring elder care facility while conducting

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work on its Cronulla rail line upgrade and duplication project. “We were duplicating a line from Sutherland to Cronulla, and we had a project office at Sutherland and those project offices were next to an aging care center,” says Stewart. “Our people on that project dedicated their own time to do some landscaping of the aging care home grounds, updating the kitchen and retiling, as a ‘thank you’ for putting up with us being next door to them for an extended period of time.”

John Holland Rail workers have achieved a number of successful community initiatives, from raising $150,000 in donations for New South Wales-based children’s hospice care facility Bear Cottage to partnering with Camp Australia for a two-day program over school holidays for children of workers on

“We self-perform, and we have a very large in house engineering and project management capability. We have 2,500 John Holland people working on railway projects at the moment and another 4,000 subcontractors. So we are a large employer, and people are really at the center of our values – Richard Stewart, General Manager of Operations at John Holland Rail w w w. j o h n h o l l a n d . c o m . a u

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JOHN HOLLAND RAIL

John Holland’s South Morang Rail Extension project. “It was a very simple initiative, but one that was very powerful,” says Stewart. “We brought the kids in to a designated safe area within the construction site, introduced them to engineering and construction as a career and gave them backpacks filled with goodies including a children’s hard hat, vests, disposable cameras so that they could take pictures. We got some different games going on, and were just trying to give a little back to the community – looking after kids for a couple of days during the school 108

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holidays, so that parents didn’t have to worry about child care for those days.”

John Holland Rail also works extensively to promote diversity, from its commitment to increase female participation to 20 percent by 2015 to its extensive work with Australia’s indigenous communities through such projects as its Career Tracks Strategy. This program in particular works to provide education and training opportunities for indigenous peoples, especially those in rural areas. Stewart cites the company’s Roy Hill Rail program in Pilbara, Western Australia – a

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390km railway running from the Roy Hill mine to Port Hedland – as a prime example of John Holland outreach. “There we have three groups we’re working closely with to see how we can leave a legacy there for those communities,” he says. “We also look to partner with local indigenous companies and work with them to help train them and get them up to the level we need to be able to work for us – and hopefully lead a legacy for them to continue working with others when we move out of the area when our projects are complete.”

A Legacy to Uphold “John Holland is steeped in culture,” says Stewart, noting that the company has recently turned 65 years old. “Our founder John Holland was an incredible person – an engineer who served in the Special Forces during WWII, he really brought the values to the organization.

That legacy still lives on in every one of our projects That pride in a job well done and a community linked closer together shines through in John Holland’s people to this day. “That’s one thing I’m most proud of, that I get to be involved in some of these really life changing projects. To get involved at the start, when we come up with these concepts, and see them implemented and then to see the community taking them up – there is a lot of pride in me and the team to e able to see what we’ve done.”

Company Information INDUSTRY

Supply Chain, Rail HEADQUARTERS

Melbourne, Victoria FOUNDED

1949 EMPLOYEES

1,600 REVENUE

$1.4 Billion PRODUCTS/ SERVICES

Rail Construction Projects / Infrastructure

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