SupplyChain Digital - January 2015

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Jan u ar y 2 015

John Lewis

The omni-channel approach

TOP 10

CEOs

Industry Focus

16 company profiles at the cutting edge of the industry

SPECIAL FEATURE

COSTA COFFEE

Working with local and independent suppliers

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EDITOR’S COMMENT

Happy New Year HELLO AND WELCOME TO

our very first magazine issue of 2015. What better way of starting the first month of the year by grabbing a coffee and having a good read through our publication.

Speaking of coffee, we have Costa as our front cover story detailing how they choose to work with local suppliers as well as partner with sustainable initiatives such as the Rainforest Alliance.

We also feature a Q&A with Colin Turner from the John Lewis Partnership regarding the ‘E-Commerce & Omni-Channel: Supply Chain & Fulfilment 2015’ congress. Rounding up the front of book features we give the latest rundown of the Top 10 Supply Chain CEO’s, including the bosses of a whole host of international conglomerates.

Enjoy the issue.

Sam Jermy sam.jermy@wdmgroup.com

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CONTENTS

Features SUPPLY CHAIN MANAGEMENT

Discussing the omni-channel approach with John Lewis

8

TOP 10 CEOs

22 PROCUREMENT

Seasonal tips for retail supply chains from DHL

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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

44

Mohebi Logistics

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BT Supply Chain

COMPANY PROFILES

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EUROPE 32 BT Supply Chain

Unit 45

44 Arvato

66 Maersk Line East Africa

54 Unit 45

AFRICA 66 Maersk Line East Africa 76 Jendamark

AUSTRALIA

76

Jendamark

86

Kings Transport & Logistics

86 Kings Transport & Logistics 106 Association: Rail Track Association of Australia 7

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

Discuss OMNI-CH APPROA JOHN L

Colin Turner, Senior Progr Chain Development at the took part in a Q&A with S his thoughts ahead & Omni Chann

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January 2015

sing the HANNEL ACH with LEWIS

ramme Manager of Supply e John Lewis Partnership, Stephanie Aslan to share of the E-Commerce nel 2015 event

W R I T T E N B Y: S T E P H A N I E A S L A N E D I T E D B Y: S A M J E R M Y 9

SUPPLY CHAIN MANAGEMENT Hi Colin. In your opinion, what is key to simplifying the supply chain process?

You can’t get away from the fact that an omni-channel supply chain, particularly for a large or diverse business, is a complicated thing. It’s made more complicated because few of us have the luxury of designing a supply chain on a ‘green field site’.

More often we have to knit

together a collection of existing supply chains, perhaps built to serve different business units or the result of acquisitions, with the aim of making something cohesive.

The key to making the supply chain process as simple as possible is to start with a clear vision of what you want to achieve in developing your supply chain, taking into account the desire for simplicity of

Few companies can afford to replace their existing supply chain, opting instead to improve a current supply chain with the aim of improving their network in the long-term

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January 2014

THE OMNI-CHANNEL APPROACH WITH JOHN LEWIS

“The key to making the supply chain process as simple as possible is to start with a clear vision of what you want to achieve in developing your supply chain” – Colin Turner, Senior Programme Manager of Supply Chain Development at the John Lewis Partnership.

Remember to be customer centric when improving your supply chain process and always remembering the needs of your customers.

If you get that vision clear and make sure it is understood throughout the organisation, then the rest will follow, albeit with a lot of hard work.

The challenge is joining it all up so that we get a really clear endto-end picture that allows us to keep everything running smoothly as well as exposing trends or emerging 11

SUPPLY CHAIN MANAGEMENT It is vital to have a good understanding of the customers’ expectations

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December 2014

THE OMNI-CHANNEL APPROACH WITH JOHN LEWIS

of the customers’ expectations, both for the service that they want and also what they are prepared to pay for it. Getting the balance of these right means you can build a proposition that offers real value to the customer, and also contributes to a healthy profit level for the business.

Colin Turner, Senior Programme Manager of Supply Chain Development at the John Lewis Partnership. issues. This congress coming up in London presents a rare opportunity to discuss the very real challenges of omni-channel retailing with peers from across the retail industry.

How important is it to understand customer delivery expectations, in order to create a responsive fulfilment service and retain a customer base It is vital to have a good understanding

Tell us one thing about you, which you would like Supply Chain Digital readers to know.

I am a John Lewis ‘lifer’, starting my career many years ago in IT and taking a rather sprawling route towards my current role in supply chain strategy.

How critical is visibility across the supply chain process?

Visibility is incredibly important. The old adage that you can’t manage what you can’t measure remains true. Taking that a step further you can’t measure what you can’t see, which means we need visibility.

The good news on this is that modern supply chain systems, and even the embedded technology in our equipment, are a datarich environment so there is no shortage of information about what’s going on in the supply chain.

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SUPPLY CHAIN MANAGEMENT The challenge is joining it all up so that we get a really clear endto-end picture that allows us to keep everything running smoothly as well as exposing trends or emerging issues that we might need to get ahead of.

“In my session I will talk about John Lewis’s journey from single to multi and then omni-channel retailing, highlighting some of the key challenges we have met along the way” – Colin Turner

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January 2014

What aspects of E-Commerce & Omni Channel 2015 are you most looking forward to?

I am most looking forward to hearing what other retailers are doing in this space, and where they see the threats and opportunities coming from in the years ahead.

The industry has moved forward an enormous extent where e-commerce and omnichannel is concerned. How disruptive has this shift been to established retail processes?

Any big change is disruptive, and the seamless merging of shopping and fulfilment channels is certainly a big one. As well as re-engineering elements of the supply chain process, there is a big cultural shift for everyone from head office through to the frontline staff who directly serve the customer. The key to making the supply chain process as simple

There is a big cultural shift for everyone from head office through to the frontline staff who directly serve the customer as possible is to start with a clear vision of what you want to achieve in developing your supply chain.

People are keen to hear your presentation at E-Commerce & Omni Channel 2015; can you give a brief introduction of the main aspects of your talk?

In my session I will talk about John Lewis’s journey from single to multi and then omni-channel retailing, highlighting some of the key challenges we have met along the way and how we have been able to take a strategic approach to building a sustainable omnichannel business.

28th-29th January in London, UK

For more information on the E-Commerce & Omni Channel 2015 event, please visit: www.ecommerce-supply-chain.com

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PROCUREMENT

LOCAL SUPPLIERS KEEP COSTA PERKED UP W R I T T E N B Y: P A U L B A R B E R , B U Y I N G D I R E C T O R A T C O S T A E D I T E D B Y: S A M J E R M Y

The British-based company is the UK’s favourite coffee shop, so we decided to catch up with them to see how it works with smaller, independent suppliers 16

January 2015

IN THE LAST decade, both independent coffee shops and bigger chains have seen extraordinary growth in the UK. In fact earlier this year research company Allegra Strategies reported that sales for the coffee shop sector grew in 2013 by 9.3 percent and saw outlet growth of nearly 5.9 percent.

At Costa we believe it is crucial that any growth we enjoy is sustainable for

both our customers and our suppliers.

So we have started with our core product, coffee; which is now 100% Rainforest Alliance (RFA) certified.

The RFA encourages farmers to grow crops and manage ranchlands in a way that looks after the land for the long-term and also supports farmers to improve their livelihoods and those of their families.

Supply chain strategy While it is great that we can ensure the provenance of our coffee we also offer complementary products, which involve a variety of ingredients and components, such as cakes and sandwiches and this can present more complex supply chains.

Our priority is that we remove any potential complexities, have a 17

PROCUREMENT transparent supply chain and deliver great tasting food. That is why we work within our Good Together strategy, which has set out initiatives dedicated to customer wellbeing.

Sustainable, local sourcing has a major role to play in enhancing customer wellbeing because our customers demand to know that they can trust the products they buy, and expect us to be sourcing responsibly. Furthermore, our customers demand that the people who make our products are treated well, we are not polluting the environment, and human rights are upheld throughout our supply chain.

As part of our strategy we have committed to working in partnership with our suppliers to develop a Sustainable Sourcing Strategy, where we are analysing categories and identifying high-risk products.

Staying local While the RFA is a globally recognised standard that reassures consumers on a products’ sustainable sourcing for other products there is not always a devoted rubber stamp. One way we ensure our customers that they are buying quality products, with 18

January 2015

quality origins, is by working with local, independent suppliers that have heritage and usually an excellent local reputation.

Bells of Lazonby, a bakery founded in 1946 in the Eden Valley, Cumbria is one such example. It makes some of our cakes ranging from Rocky Road

‘Bells has been making cakes for over sixty years and it is still a family business with Michael Bell, son of founder John Bell, heading up the business’

L O C A L S U P P L I E R S K E E P C O S TA P E R K E D U P

WELCOME TO BELLS OF LAZONBY We are a well established flexible and innovative family bakery business.

Established in 1946, we now have three important strands to our business.

Bells of Lazonby is a traditional regional craft bakery brand with an exciting new offshoot: WeLoveCake - focusing on supplying great quality cakes to the Food Service trade.

The Village Bakery is one of the most respected organic brands.

Ok Foods - our ‘Free From’ business brand is run from a dedicated gluten, wheat and dairy-free site also supplying supermarket own label products.

and Lemon Cupcakes to our Victoria Sponge, all of which are hand finished by the talented staff. Bells has been making cakes for over sixty years and it is still a family business with Michael Bell, son of founder John Bell, heading up the business. Similarly a quarter of all its employees have worked at the business for over ten years. The bakery’s heritage and focus

on its employees ensures we can be confident that everyone in the supply chain is treated properly and has been made by experienced skilled workers.

Similarly we have procured the services of a family baker, Rowe’s that is based in Penryn, Cornwall to make our scones because an additional benefit of using traditional, independent bakers is that they in turn often use local suppliers. This helps to ensure our supply chain continues to be traceable. For example the butter used by Rowe’s is sourced from a local creamery in Davidstow and the buttermilk and cream from a Cornish dairy in Trewithan.

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PROCUREMENT

Costa’s brand is synonymous with great tasting coffee Sustainable sourcing for the future Of course working with small independent suppliers is just one strategy we employ to ensure the sustainability of our supply chain. We also have to ensure the transport of our goods is sustainable as well as the packaging too.

Collaboration is a key theme throughout and working with partners 20

January 2015

to achieve these goals is paramount.

For example earlier this year we partnered with SimplyCups, which is the only paper cup recovery and recycling service in the UK, to ensure everything in our supply chain from the dough to the disposal of our waste is sustainable for the future.

These strategic partnerships with smaller, local suppliers ensures we have complete supply chain visibility

C O S TA’ S L O C A L S U P P L I E R S

Simply Cups is the UK’s ONLY paper cup collection and recycling service. It provides paper cup manufacturers, organisations operating in the supply chain as well as beverage and hospitality outlets with a costefficient collection and recycling service that will reduce their operating costs and improve their environmental credentials.

‘We partnered with SimplyCups, the only paper cup recovery and recycling service in the UK, to ensure everything in our supply chain is sustainable for the future’

and we can be confident when providing food and drink products to our customers, that we know exactly where the raw ingredients have been sourced from. Couple this with our progressive, forward-thinking sustainable initiatives such as the ones with the Rainforest Alliance, and it means the Costa supply chain is in a very healthy position for 2015 and beyond.

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TOP 10

TOP10 CEOs

The latest rundown of the top men at the world’s biggest logistics companies Written by: : Sam Jermy

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TOP 10

10

Jens Bjørn Andersen, DSV

Andersen became CEO of DSV Road Holding in 2007 and Group CEO in 2008. He began with the former Samson Transport Co in 1988, holding various positions.

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January 2015

Following DSV’s 1997 acquisition of Samson, he became CEO of DSV Samson Transport. From 2001, he was CEO of Tollpost Globe AS in Oslo and was headhunted for the CEO job at DFDS Transport/DSV Road in England in 2003.

TOP 10 CEOS

08

Kenji Watanabe, Nippon Express

Watanabe serves as the Chief Executive Officer and President of Tokyo-based Nippon Express.

He has been in this position since June 2011, having joined the company back in April 1972 and has held a wide number of positions. He obtained his Bachelor of Law degree from Chuo University in March 1972.

09

Xavier Urbain, CEVA Logistics

One of the newest CEO’s in our list, Urbain was named CEO of CEVA in January 2014 and is also the President of the Americas region. He held several senior positions at Kuehne + Nagel and was CEO of ACR Logistics and Hays Logistics. He started his career with Deloitte & Touche as an external auditor. He holds a PhD in economics.

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TOP 10

06

Dr Detlef Trefzger, Kuehne + Nagel

Prior to joining Kuehne + Nagel in 2013, Trefzger was on the Executive Board of Schenker from 2004 to October 2012. In 1994 he was Principal at Roland Berger and Chief Financial Officer of Schenker in 1999. He was Executive Vice President Contract Logistics of Kuehne + Nagel Group from March 2013 to August 2013, when he became Group CEO and responsible for Contract Logistics.

07

John Wiehoff, CH Robinson Worldwide

An employee at CH Robinson since 1992, he has been CEO since 2002. He won a role in public accounting with Arthur Anderson LLP as a graduate, with CH Robinson being one of his clients.

He joined the company eight years later as a controller in the finance department. He became Chief Financial Officer in 1998.

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January 2015

TOP 10 CEOS

05

David P. Abney, UPS

The man who replaced Scott Davis on September 1, 2014, as part of an orderly transition in which Davis retired as CEO but retained the role

of non-executive chairman. David Abney, who began his career as a part-time package loader while in college, is the 11th CEO in the 107-year-history of UPS and is tasked with keeping the group heading in the right direction.

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TOP 10

04

Dr RĂźdiger Grube, Deutsche Bahn AG

Grube is also reported to be the Vice President of the Hyundai Motor Company, a director at Mitsubishi and at McLaren Group and also non-executive director for The Airbus Group. Since 2009, he has been Chairman of the Management Board and CEO of the Federal Republic of Germanyowned railway company, the parent of DB Schenker. It was struggling and Grube had to begin by making tough decisions regarding cuts.

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January 2015

03

Frederick W. Smith, FedEx

Modern-day legend and proof of the American dream, Smith is the founder of one of the biggest companies in the world. Now a $45 billion interest, the idea for it began during Smith’s three-year stint, 1966-69, as a US Marine, where he observed the logistics and procurement of the armed forces cloesly and was inspired to start up an overnight delivery service for civilians. He founded Federal Express with his $4 million inheritance (modern equivalent $23 million) and raised $91 million ($525 million) in venture capital in 1970.

TOP 10 CEOS

02

Dr Frank Appel, Deutsche Post DHL

Appel has been CEO since 2008 and will be until 2017. He has a PhD in Neurobiology from ETH (Swiss Federal Institute of Technology). He was a Consultant and Project

Manager at McKinsey & Co in Germany since 1993 and was then elected to Partner of Member of German Business Management in 1999. In 2000 he joined Deutsche Post as Managing Director Corporate Development.

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TOP 10

01

Nils S Andersen, Maersk

From Denmark, Andersen trained as an economist and joined AP Moller Maersk in 2007 as CEO after a career as a controller with Nordic Sugar and the Carlsberg brewery group through the 1980s and 90s.

At Carlsberg he became Executive Vice President and then CEO of breweries in Spain and Germany. He spent two years on the executive board of HERO consumer foods in Switzerland, before returning to Carlsberg in 1999 to lead a number of acquisitions, market entries and group-wide initiatives.

His work is said to have turned around the financial performance of the Carlsberg group and strengthened its global position.

At Maersk, he fronted a transformation process which led to a more focused portfolio, a leaner organisation and increased competitiveness. The group’s transparency and communication with stakeholders also increased.

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January 2015

From 2011 Andersen has been heading a new long-term strategy with focus on the four core growth businesses of Maersk Line, Maersk Oil, APM Terminals and Maersk Drilling. Maersk also has more market value, assets and has posted $800 million more profits than Appel’s DHL in second place.

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BT Supply Chain Brings Enhanced Industry Expectations to the Fore Written by: Matthew Staff Produced by: Craig Daniels

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B T S U P P LY C H A I N

One of the UK’s most familiar organisations continues to reinvent its supply chain arm as it looks to extend existing capability and services with external customers

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January 2015

B

T is one of the most recognisable brands in the UK, operating successfully over the years upon a bedrock of core market facing businesses; BT Supply Chain has underpinned each of these, providing valuable experience of how supply chain can enable greater business success.

Historically providing the logistical knowhow and efficiencies to help the entire organisation run as effectively and safely as possible, the team of around 850 people has long provided the supply chain planning and logistics which helps to enable BT’s market facing businesses.

These are the words of Managing Director, Nicholas Hale, who was brought into his current position to steer BT Supply Chain and BT Cables towards the next stage of development.

“Across each area of supply chain operations we support between 40,000 and 50,000 individual orders a day. We are responsible for supply chain planning, logistics, critical spares management and inventory performance amongst many other value-added integrated services such as staging, configuration, cable management, testing and repair, and inventory performance” he explained.

“Over the past 18 months, having got that capability to critical mass, we’ve opened our doors to the external market working with target customers that like us have significant engineering field forces. We’re increasingly working with those organisations and providing similar services to them throughout our network, particularly in the UK.”

S U P P LY C H A I N

Transport network

Sustainable supply chain Replicating the internal processes to external markets required and his team to pinpoint efficiencies on a whole new level, subsequently pinpointing the key areas of service offerings that could apply across the entire spectrum of customers.

This led to what Nicholas describes as a three-pronged strategy existing as part of an omnichannel supply chain model.

“Our strategy can be encompassed under a rather simple statement which is used time and time again: ‘rethink what your supply chain can deliver’,” he said. “The three things which we believe are significant for external customers are working collaboratively to deliver a differentiated customer experience, transforming costs, and ensuring there is a sustained platform for

50,000

Number of orders a day for BT Supply Chain

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B T S U P P LY C H A I N

Key Personnel

Nicholas Hale Managing Director Nicolas joined BT in 2012 as Managing Director Supply Chain with a clear remit to transform the model and impact of supply chain both across BT Group and with external customer.

He is responsible for supply chain strategy and operations across BT Group, a scope that includes delivery of a multi-channel supply chain to support BT’s varied B2B and B2C business. He is also Managing Director of BT Cables, a UK based manufacturer and supplier of cable products in various sectors.

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January 2015

growth through capacity and capability, but also sustainability.”

BT Supply Chain has subsequently made giant strides through “BT Collect”, a term it uses to describe initiates that use its own transport network to collect and transport inbound products, vastly reducing the amount of miles covered throughout the distribution process.

Sterlite, a supplier of fibre cable products to BT Group, is one example of where we have been able to utilise the BT Supply Chain capabilities to provide logistics and other related services so that together we deliver additional value across the supply chain.

Nicholas continued: “Within performance against the key target metrics, one of the critical aspects of our inventory management continues to be stock dimensioning, ensuring that critical spares and other high value equipment is in the right place to minimise response times to service incidents and also the distance a product needs to travel.

“Engineers want spares to be 30 miles away and not 100, so customers get back online quicker while we also minimise our carbon footprint and the cost to serve in the process.”

The company has so far reduced inbound response times by 52 percent, while around 30 percent of its shipments from the docks or in the UK are now arriving via its own BT Supply Chain vehicles.

“Our strategy can be encompassed under a rather simple statement which is used time and time again: ‘rethink what your supply chain can deliver’” – Nick Hale, Managing Director, BT Supply Chain and Cables

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Made in Britain. Delivered worldwide.

We’ll help you expand your business overseas with a delivery network that reaches 99.6% of the world’s population.

As experts at export we offer a full range of service options to 240 countries and territories worldwide. And because our delivery partners are local postal organisations we – literally – know where everyone lives, giving your business a competitive advantage overseas, with high first time delivery rates.

Find out how we can help your international business grow.

parcelforce.com/export Parcelforce Worldwide and the Parcelforce Worldwide Globe Logo are trade marks of Royal Mail Group Ltd. © Royal Mail Group Ltd 2014. All rights reserved. Parcelforce Worldwide is a trading name of Royal Mail Group Ltd. Registered in England and Wales, number 4138203, registered office: 100 Victoria Embankment, London, EC4Y 0HQ. Parcelforce Worldwide is a GLS network partner.

B T S U P P LY C H A I N

S U P P LY C H A I N

These same benefits reach to the external market as well, with BT Supply Chain on hand across a wider footprint to meet needs of suppliers quicker, ensuring vast improvements are being made in regard to rapid response times, and right-first-time occurrences.

BT benefits For many companies, taking a set of services, regardless of previous successes, to a new market or customer base would come engulfed in marketing and entrepreneurial challenges, but BT Supply Chain arrived on the scene with one readymade trump-card; the scale and breadth of the existing infrastructure and services need to support BT Group business. Alongside BT Supply Chain is also BT Cables, a UK based

SUPPLIER PROFILE

Lutterworth Warehouse

PARCELFORCE WORLDWIDE

As a Great British parcel company and a leading provider of express delivery services, we are proud to work with BT Supply Chain logistics as a partner, delivering their key telecoms components to meet the needs of their business customers and engineers. Our outstanding range of convenient delivery options means that we can provide flexible, secure and express delivery and collection solutions - from time critical early morning deliveries to next day and two day delivery. Our customers trust us to be the face of their brand and we pride ourselves on our reliable service and experienced people to deliver at home and abroad with a personal touch.

Website: parcelforce.com/export

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B T S U P P LY C H A I N

S U P P LY C H A I N

manufacturer and supplier of cable products working with external customers across the rail, telecoms and infrastructure sectors.

“To help build on each of these assets we are able to leverage many group initiatives that further support what we have set out to deliver, both for internal and external customers. There are many parts of BT which contain hugely valuable experiences and skills, such as continuous improvement and lean, so it would be foolish of us not to benefit from them,” Hale said. “We’re proud of what we’ve established and achieved as a team at BT Supply Chain.

Management communities and academies that already exist within BT are also optimised within the BT Supply Chain business, while the company works alongside the Chartered Institute of Logistics and Transport as well to accredit people at various levels to aid their own and the company’s supply chain skills development.

Lutterworth Warehouse

Converged offering Through the established expertise at BT’s disposal and the successful business model that BT Supply Chain has been able to replicate across the company, consumers and external businesses, the necessity of optimising an omnichannel supply chain is being put into practice to great effect.

Overseeing all channels, a BT Supply Chain control tower ensures that the service is continually managed in real time, challenged and w w w. b t s u p p l y c h a i n . c o m

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Lutterworth Warehouse

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January 2015

redesigned as needed to make it as efficient, responsive and flexible as possible. Innovation is also key to this strategy, as Hale explained: “Within London, we are increasingly using public transport and our own feet to move time critical engineering spares and B2C orders around town because it’s quicker. We use a hand carry solution because, for example, the best way from Edgware Road to Canary Wharf is not in a small van, it’s on the underground.

“Again, this also reduces the cost base and carbon footprint, and we’ll be rolling that out to seven cities in the UK by the end of the year.”

Unique initiatives such as this are indicative of the market understanding that BT Supply Chain has, primarily providing for an increasingly demanding set of customers in all sectors, but particularly

S U P P LY C H A I N

those with an engineering field force and similar challenges to that of BT Group businesses.

Hale continued: “Inconvenience’ is increasingly simply not a tolerated word. People want a huge amount of flexibility and options, and with minimised time scales.”

Not necessarily constrained to just B2B or B2C customers, it is this realisation that BT Supply Chain addresses in an attempt to converge the two markets as seamlessly as possible.

“I would like to be in a situation where we would no longer talk about B2B or B2C but we talk about different customer segments with different nuances of solutions or service requirements,” Hale concluded. “B2B and the supply chain has not always been dynamic enough in general and has not been thought about enough from the customer perspective that B2C always has.

“Ultimately, our ambition is to be able to say that anyone who has engaged with and received a service from BT Supply Chain will have felt that it served their needs when expected, at an appropriate level of cost and with an appropriate level of insight. But beyond that we together clearly positively impacted their business strategy and performance by rethinking what the supply chain could deliver.”

“Supply chains can’t be passive things and they have not had the credibility and businessbacking that they should in the past. People’s expectations are raised now though and we have a fantastic opportunity ahead.”

Company Information INDUSTRY

Supply Chain HEADQUARTERS

UK FOUNDED

2012 EMPLOYEES

1,000+ REVENUE

£100m+ PRODUCTS/ SERVICES

B2B and B2C Supply Chain

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arvato SCM Group: How

supply chain solutions using

arvato offers innovative, end-to-end supply chain solutions Written by: Abigail Phillips Produced by: Craig Daniels

w to deliver global local partners

s to a global client base

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A R VAT O S C M G R O U P

F

Achim Berg, CEO of arvato AG and member of the Bertelsmann Executive Board

“Our clients enjoy working with us because we deliver results in a way that makes them more successful.”

– Philipp Klappe, Executive Vice President

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January 2015

or over 50 years, many of the world’s most respected companies and innovative public sector organisations have benefited from working with arvato for their BPO needs. Over the course of its varied history, the company has become a trusted partner to many companies, offering a comprehensive and all-inclusive portfolio of services. From financial solutions, customer relationship management, digital marketing, Print and IT solutions to Supply Chain Management, arvato delivers an end-to-end roster of innovative, individual solutions that help its clients achieve their objectives.

“Our clients enjoy working with us because we deliver results in a way that makes them more successful. We operate as an extension of their organisation - driving towards their objectives and respecting their culture.

They trust our collaborative, flexible and long-term approach to partnership. As a result, our international client relationships last 10 years on average,” says Executive Vice President, Philipp Klapper. arvato SCM began life as a service provider working solely in the publishing industry.

After managing the distribution of books for a number of clients and, in time, the company developed to other industries like automotive and expanded the service portfolio. It all started offering integrated services adding marketing procurement and developing into corporate information management, IT

S U P P LY C H A I N

arvato’s compan: Spirit of solution!

integration and financial services. By the late 90s however, the company recognized that its services spanned a much wider remit than it currently focused on so diversified into the fast growing segments telecommunications, consumer products, healthcare, hightech and entertainment. Since then, arvato overall has grown at a meteoric pace and last year achieved â‚Ź4.5 billion in revenue.

Today, there is really very little the company cannot do when it comes to modern supply chain management on a global scale. The offerings span from contract logistics, solution design, e-commerce and IT solutions, cross border and transport management to industry solutions. arvato SCM offers a complete supply chain

4.5 b Revenue for arvato SCM last year

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The company combines its expertise in business process outsourcing (BPO), financial solutions, customer relationship management, supply chain management, IT solutions and public sector and citizen services to deliver innovative, individual solutions that help its clients to achieve their objectives.

A R VAT O S C M G R O U P solution that has the capability to take any product from the production line to the consumer of the omnichannel world.

Investing in innovation One of the company’s unique selling points is its dedication to investing in innovation and technology. “Every year we invest heavily in supply chain technology to ensure we offer better and more relevant solutions to our clients,” says Klapper. In the last year alone the business has fed a lot of money into omni-channel software, automation technology and big data. “Our focus on technology really does set us apart from the competition,” he says. “As the

arvato SCM headquarters

bechtle.com

Bechtle koordiniert alle Logistik- und Serviceaufgaben wie Produktmanagement, Einkauf oder Lager zentral. Von Neckarsulm aus steuert die Logistik den europaweiten Versand. Auf rund 20.000 Quadratmetern lagern ständig mehr als 8.500 Artikel, die nach Bestellung größtenteils am nächsten Tag beim Kunden sind. Im Jahr verlassen das Logistikzentrum so über 1,7 Millionen Pakete.

Schlank, stark, schnell, zentral.

Insgesamt bietet Bechtle 56.000 Artikel an.

Viele davon werden direkt vom Hersteller geliefert. Von den schlanken Prozessen profitieren die operativen Unternehmenseinhei-

IT’S A SMALL WORLD Berry & Donaldson represents importers and exporters of globally traded commodities in Sea, Air and Road freight logistics, warehousing and Customs clearances.

ten. Sie können sich voll auf ihre Kernkompetenzen konzentrieren und den Kunden günstige Preise und eine hohe Lieferfähigkeit garantieren. Effiziente Prozesse setzen wir gleich mit zufriedenen Kunden. Eine Formel, für die wir einfach alles in Bewegung setzen – heute und morgen.

info@berrydon.co.za • www.berrydon.co.za

50

January 2015

Automation technology

speed of change is accelerating we need to be very adaptable to technology and move with the times.

It is vital for us to offer distinctive services to stay ahead of competition.”

Offering global solutions arvato SCM has a global portfolio of clients, operates in more than 20 countries and runs worldwide solutions. As it stands, Europe stays its strongest market, however it is making headway in the USA and China. In the year ahead it plans to increase speed in growth markets, including Turkey, South East Asia and Brazil.

Despite operating under one umbrella,

“Every year we invest heavily in supply chain technology to ensure we offer better and more relevant solutions to our clients” – Phillip Klapper, Executive Vice President

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A R VAT O S C M G R O U P

arvato works with local partners and suppliers

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January 2015

arvato SCM is acutely aware of the varying cultures, regulations and infrastructure in different countries. With this in mind, the company makes a point of working with local partners and suppliers to drive and support local business. That being said it does have one central IT backbone to ensure consistency across the group.

As Klapper explains, “We operate on a

EUROPE

global IT platform. Balance that against local execution and we ensure the same performance, continuous improvement measures and KPIs across the group, but with cultural relevance and empathy as well.”

Forward thinking employment Overall arvato has 68,000 employees and takes great pride in offering exciting job roles worldwide. “One thing that attracts employees to the company is global exposure and opportunity,” says Klapper. “Many of our employees enjoy the fact that their role is challenging and they have a lot of responsibility and authority early on in their careers with the company.”

“It is our understanding that Gen Y employees look for this over and above financial incentives, so we have been very successful with our recruitment and retention strategies. We have adopted this approach for a long time, while some of our competitors are only just realising the shift,” he says.

In the next five years, the company plans to continue on its growth trajectory, while realigning its portfolio. “We will actively remove activities within the business that are becoming cumbersome and conversely, we will invest heavily in growth verticals,” says Klapper. As always, IT and technology will be at the top of the agenda. arvato SCM is an ambitious and smart company; it is forward thinking and innovative, but it will not rest on its laurels. This combination is a winning one.

Company Information INDUSTRY

Supply Chain Management HEADQUARTERS

Slough, UK FOUNDED

Not disclosed EMPLOYEES

64,400 REVENUE

€4.5 billion PRODUCTS/ SERVICES

Supply Chain Management, CRM, IT, Finance

w w w. a r v a t o . c o . u k

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Unit 45 Holds the

key to container trade Written by: Sam Jermy Produced by: Craig Daniels 55

UNIT 45

The Rotterdam based company is described as an intermodal innovator due to its groundbreaking transport solutions for 45 feet containers, and the business is continuing to experience great success as a result

56

January 2015

D

espite Unit 45 being a relatively young company, it has quickly made its mark on the container trade by obtaining numerous seven-figure contracts, such as the €30 million deal with Kazakhstan-based company KTZ Express.

After its establishment in December 2002, it set a goal of making 400 dry-box units in 2013 and 600 in 2014. In the event, it has actually manufactured and distributed over 5,000 this year, surpassing all company expectations.

From this point it started to develop its rental fleet in 2005, reaching the 2,500th unit in 2008 and the organisation today has an impressive 12,000 in its rental fleet and a presence in every European country, illustrating the sheer magnitude of growth the Unit 45 has experienced.

Now it is garnering the interest of multinational corporations such as HP Logistics, Pfizer and Acer; mainly due to the innovative, patented container designs.

Jan Koolen, Managing Direct at Unit 45, explained how containers are sold to the end-user having met specific requirements, with the livery often being in that specific company’s colours and décor application.

He said: “Unit 45 is becoming ever bigger and that is because we are innovators. For example, between 2003 and 2005 we earned most of our revenue out of the dry-box units, but I can assure you we are now earning more revenue out of the newly developed products. Such as the diesel electric reefer units and curtain-sided units; so

S U P P LY C H A I N

Diesel electric reefer

there is a constant development process.�

The dry-box units are usually sold after the firm has put some added value to it, whether that be through the livery or by implementing temperature controlled logistics, such as the cooling units.

Normally a standard 45ft long dry-box unit is 2.5 metres wide and nine feet six inches high, but already it has some different specifications.

Koolen added: “We have a diesel electric reefer unit which means you can run this electrically and by diesel. It has an integrated generator set

Loading the containers

w w w. u n i t 4 5 . c o m / u k

57

We a

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We deliver ultimate assurance. Our quality products and services are recognized around the world for reliability, efficiency, and innovation.

Our customers have peace of mind that Thermo King will keep them running at maximum capacity to grow their business. Thermo King, a brand of Ingersoll Rand, was founded in 1938 and leads the world in manufacturing and innovating transport temperature control systems for a variety of mobile applications, including trailers, truck bodies, buses, shipboard containers and rail cars.

Thermo King currently has nine plants in six countries. Our customers get the same high product quality, whether we manufacture their units in Hastings, Wujiang, or Kolin. We are committed to providing products that are ecologically responsible and high performers. In addition, our people share a common commitment to prosperity through growth and international trade.

Our global network reach provides service almost anywhere in the world. We offer Thermo King service at every crossroads and in every port. When the customers can’t come to us, we go to them. Thermo King supports a parts and distribution system that can deliver any of 20,000 parts, anywhere in the world, overnight.

Even better than fast and efficient response to problems anywhere, is preventing them in the first place. Simulation analysis is part of our design process, so the breakdown points of parts and units are corrected in advance, not discovered in use. Our labs, the most sophisticated in the transport refrigeration industry, perform endurance testing to replicate the severe and extreme conditions in which our products perform.

Website: www.thermoking.com

UNIT 45

S U P P LY C H A I N

that is one piece instead of being mounted. We developed a special floral container for the Dutch flower companies to use; it was a little bit wider and longer so it had the same internal dimensions as a trailer, and then they could load the same as other units and trailers.

“Although we are dealing in containers, our competition is not necessarily the container business, it is actually road transportation. That is why we use 45ft equipment because 45ft is 13.72 metres, and all trailers on road have a 13.60 metre dimension. So you are able to put the same amount into our 45ft unit, and subsequently our containers lends itself very easily to intermodal transportation.”

“Although we are dealing in containers, our competition is not necessarily the container business, it is actually road transportation” – Jan Koolen, Managing Director

Customer satisfaction Unit 45 is maintains a high level of flexibility towards the differing needs of its customers, and Removing container from road trailer

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61

TLC The most professional container manufacturer

TLC is the first reefer

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UNIT 45

S U P P LY C H A I N

it is therefore attracting a high level of business interest. As well short-sea operators, logistics providers such as the European Container Service in Zeebrugge, road freighters, and nonvessels operators including A2B Online, the organisation is also providing practical logistical solutions for international clients.

In partnership with Thermo King, Unit 45 has developed a diesel electric reefer unit with a T1200 Thermo King cooling unit under an 800 litre tank that controls containerised products at a certain designated temperature.

Originally, the diesel unit was not able to be larger than 250 litres which presented a problem for the likes of YHF Logistics, KTZE and HP Logistics. It moves freight from Chongqing in China, through a Kazakh winter time that can reach under -40 degrees Celsius, then onto Russia, Belarus and Poland before reaching Germany, so it needed a year-round solution that did not involve refuelling two or three times on the 16 day journey.

This is just one example why Unit 45 possesses a range of contracts ranging from €6,000 to €30 million, with most being in the €1-€5milllion bracket.

Unit 45 possesses a range of contracts ranging from

€6,000 to €30 million

Further prosperity All manufacturing and production of Unit 45 containers is completed in China, and depending on specifications it differs between two and six months to get them over to Rotterdam, so

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UNIT 45

On the road

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January 2015

advance planning is needed, especially if a client wants its own logo and livery.

But Kollen added: “We always have containers on stock in Rotterdam just in case a customer needs instant availability, and those containers are always in our own decors and Unit 45 specification. They are meant for the rental fleet but we could sell them as well. We are working

S U P P LY C H A I N

closely together with our three suppliers in China and we have been doing so for a long time.

“We are a very small company with only eight employees. We have one person who does all the new developments and technical things, together with me. We see if there is a market for it, and look into the possibilities with engineering and factories.

“We are exploring a passive refrigeration system which means that you have a kind of plate into your container and there is a substance in which you could charge. It is food approved, it is not dangerous at all and you are able to put this container on a certain temperature for a period of 12 to 18 days.”

Unit 45 has developed this system together again with Thermo King, the cooling unit manufacturer. It is still in the development phase, but Koolen says if it works out it will be a revelation within the cooling industry.

He also expects the temperature-controlled exports to China to provide another revenue in the coming years, as the country’s demand for high value pharmaceuticals and potato and milk products increases.

“We do only have a small team, but we are talking to the HP’s, the Acer’s and Pfizer’s of this world; all big companies who are willing to use our type of innovative equipment.” concluded Koolen.

On its current trajectory, Unit 45 is set to be a much larger company in the company years as more take advantage of its cutting edge container designs.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Rotterdam, The Netherlands FOUNDED

2002 EMPLOYEES

8 REVENUE

Not disclosed PRODUCTS/ SERVICES

Container units

w w w. u n i t 4 5 . c o m / u k

65

Maersk Line East Africa emerging as a jewel in the company crown Written by: Sam Jermy Produced by: Dennis Morales

67

MAERSK LINE EAST AFRICA

The East Africa region of Maersk Line has gained top-level attention as the rate of growth surpasses many of the economies of the western world

Loading Maersk container cargo

68

January 2015

T

he East African containerised market is enjoying an exciting phase in its development, as it closes in on one million twenty-foot equivalent units (TEU’S) in both shipping directions with the level growth outpacing many other markets.

Maersk Line acts as a facilitator of trade within a region it only began operating in during the 1980’s, and since then has directly and indirectly created thousands of jobs within East Africa. Thirty years later, and Maersk Line East Africa is now the leading container carrier in the area, with up to seven weekly port calls.

The business unit’s scope comprises Kenya, with the regional headquarters in Nairobi, Uganda, Tanzania, Rwanda, Burundi and South Sudan, extending to the eastern DRC and also serving customers as far away as Zambia and Malawi.

Steve Felder, Managing Director of Maersk Line East Africa, said: “The shipping industry, and of course our business, plays a significant role in enabling trade in the region by connecting East African importers and exporters to a global trade network. We focus almost exclusively on port-to-port shipping, which is a critical element in our customers’ supply chains.

We offer reliable weekly sailings to and from literally hundreds of ports around the globe.

“The market in East Africa is now approximately one million TEU in both directions and is growing at around 10 percent per year, which is more than double the global containerised growth on average.

S U P P LY C H A I N

Steve Felder, Managing Director - East Africa

So relatively speaking we are a high growth region, and so it’s taking on more prominence in our company. Our Maersk Group CEO and members of the executive board visit quite regularly, so it is definitely a priority area for us.

“In East Africa we directly employ about 150 colleagues. Over the years, we have also offshored some non-location-specific tasks to our shared services centres in India, China and the Philippines, in order to enable us to get more of a focus on the customers locally.”

Progression and challenges Trade essentially works in two corridors in East Africa. The northern corridor originates from Mombasa and services the whole of Kenya,

“The shipping industry, and of course our business, plays a significant role in enabling trade in the region, by connecting East African importers and exporters to a global trade network” – Steve Felder, MD of Maersk Line East Africa

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MAERSK LINE EAST AFRICA

Safmarine truck

“Currently, it often costs far less to ship a container from China to East Africa than it does to truck that same container to its final destination in the region” – Steve Felder 70

January 2015

Uganda, South Sudan and parts of Rwanda.

The central corridor starts in Dar Es Salaam and services Tanzania, parts of Rwanda, Burundi and parts of Zambia, Malawi and eastern DRC. Felder points out that although Mombasa and Dar Es Salaam are the two main gateways and critical trade corridors, Maersk also has an office in Kampala, making it the only shipping line with a comprehensive full-service set-up in Uganda, with services including sales, customer relation management and documentation to collections. This positions the company well to service its customers in

S U P P LY C H A I N

this important inland market, which has also emerged as a trading hub for South Sudan.

The firm has also recently implemented a customer CARE programme, where larger customers receive a highly personalised after-sales service anchored with a dedicated point of contact.

Felder said: “The growth is pleasing, but at the same time the infrastructure has to keep up with it. The capacity on the rail network is currently insufficient, and only three percent of cargo moves on rail, so the remaining 97 percent moves on road, which adds to the deterioration of the road network. The ports are also stretched for capacity, and productivity is rather low compared to developed markets.

“Like many emerging markets, East Africa is characterised by a high import dominance.

For every four containers being imported full, only one is getting exported full. This means there is a lot of open capacity on the backhaul route, creating a massive trade imbalance and also a large repositioning cost for us.

“Of course our hope is that over time there will be greater proliferation of industrial and production activity in the region, in order to address this imbalance. Over time we also hope the inland logistics cost will go down too. Currently, it often costs far less to ship a container from China to East Africa than it does to truck that same container to its final destination in the region.”

Maersk cargo

Loading cargo

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71

Mombasa Fresh Water Suppliers

We supply 75% of ships calling at the por t of msa and also supply on tender bases kenya por ts authority hq terminal as well as total main terminal.

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MAERSK LINE EAST AFRICA

S U P P LY C H A I N

Future strategic plans Containerised trade and the economy in the East African region is growing at faster than developed markets. Economic growth in the region ranges from +4.5 to +7 percent rise in GDP (Gross Domestic Product) and the population is 160 million, around half of the USA. Although there is immense potential in the market going forward, there are still challenges.

These include the cost of electricity, large trade deficits, insecurity, bureaucracy and overreliance on agriculture. But the ongoing political stability, high population growth, growing middle-class, increasing foreign investment, and new Oil & Gas discoveries means the region is clearly poised for more growth.

Felder added: “Infrastructure development is very high on all the governments’ agenda in the region. There are plans to improve ports, develop a standard gauge railway between Mombasa, Kampala and possibly extending to Kigali, and to rehabilitate the railway from Da El Salaam to the hinterland countries, so infrastructure as an enabler to growth is at the forefront of everyone’s minds.”

Maersk Line has also made a concerted effort to localise many management positions previously held by expats. For example, it recently hired a local CFO for its Tanzanian agency who replaces an expatriate. Despite this, Maersk is a global company, and expatriation is still used as a vehicle for

“The market in East Africa is now approximately one million TEU in both directions and is growing at around 10 percent per year, which is more than double the global containerised growth on average” – Steve Felder

Safmarine truck

w w w. m a e r s k l i n e . c o m

73

MAERSK LINE EAST AFRICA

Safmarine container ship

“Infrastructure development is very high on all the governments’ agenda in the region. There are plans to improve ports and develop a standard railway between Mombasa and Kampala.”

– Steve Felder 74

January 2015

development of high-potential employees.

The Africa region boasts an African Leadership Development Programme, where 40-50 emerging leaders from the African market are trained in a variety of skills, in order to ensure it is building a strong foundation for the future.

The other focus of investments is largely upgrading vessel sizes to accommodate growth.

Maersk Line has during 2014 upgraded the capacity of its services from the Middle East and the Indian sub-continent into East Africa, and will continue to upgrade capacity as and when warranted by market growth. The East African ports currently have a mix of ship-to-shore

S U P P LY C H A I N

cranes and also make use of onboard vessel gear. Maersk Line is the only shipping line with two dedicated berths at the Port of Mombasa, facilitating unmatched reliability to its customers.

Controlled atmosphere reefer containers have the ability to extend the shelf-life of sensitive agricultural and horticultural products, which has opened up a realm of new opportunities.

For example, Maersk Line ran a project to convert some of the avocado exports from air freight to sea freight. It was very successful, and today it moves approximately 30 percent of avocado exports in reefer containers, enabling the fruit to reach European markets at a lower cost and with a substantially lower carbon footprint.

Exports from East Africa are mainly commodities such as soda ash, tea, coffee, minerals and tobacco. There is also a fairly robust trade of fruit and vegetables, and a niche trade of garments to the USA under the AGOA agreement. Imports are generally finished goods such as motor vehicles, plastics and consumer goods, with Asia being a large origin, along with the UAE as a key redistribution centre.

Customers can transact with Maersk Line in East Africa almost entirely via its suite of e-commerce tools, and can make payments via mobile money, which is very prolific in the region. With the financial strength and global expertise Maersk Line possesses, it is clear that the East Africa region is set for a prosperous period into the future.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Nairobi, Kenya FOUNDED

1984 EMPLOYEES

150 REVENUE

Not Disclosed PRODUCTS/ SERVICES

Container shipping

w w w. m a e r s k l i n e . c o m

75

www co.za

Jendamark a South

African company with a global philosophy

Written by: Abigail Phillips Produced by: Dennis Morales

w.jendamark.

77

One thing that sets Jendamark aside from the competition is its focus on understanding it’s customers and getting to know the people it deals with

78

January 2015

E

stablished in 1989, Jendamark Automation provides production solutions, predominantly to the automotive industry, with the pharmaceutical, food and beverage and packing industries benefiting from its services.

The company has more than 18 years worth of turnkey projects and special purpose machinery experience under its belt and takes pride in its ability to provide world-class production lines and assembly facilities to export orientated customers.

From conceptual to final design, manufacture, assembly, software engineering, commissioning and training with after sales service and support,

JENDAMARK

S U P P LY C H A I N

Jendamark is able to offer its customers more than machines. Jendamark works with a broad range of international companies, and as such has a successful component sales and marketing team with representatives globally.

Focusing on people One thing that sets Jendamark aside from the competition is its focus on people. On the company’s website it states, “We make it our business to get to know the people we deal with, to understand their expectations and their needs, and to gain an intimate knowledge of their long term goals and immediate challenges,” and Quinton Uren, Managing Director, echoes this sentiment.

“We listen to our customers needs and work with them to develop solutions they want,” he says.

Couple this commitment to its clients with almost 20 years experience in turnkey projects and developing special purpose machinery, and it is clear why Jendamark Automation are leaders in the field of providing world class production lines and assembly facilities.

“When you deal with Jendamark Automation

“We make it our business to get to know the people we deal with to understand their expectations and their needs, and to gain an intimate knowledge of their long term goals and immediate challenges,””

Jendamark Automation At Jendamark Automation there is only one thing we seek to understand better than machines – people!

We make it our business to get to know the people we deal with, to understand their expectations and their needs, and to gain an intimate knowledge of their long term goals and immediate challenges.

Couple this commitment to our clients with almost 20 years experience in Turnkey Projects and developing Special Purpose Machinery, and it is clear why Jendamark Automation are leaders in the field of providing world class production lines and assembly facilities.

– Quinton Uren, Managing Director w w w. j e n d a m a r k . c o . z a

79

JENDAMARK you’re investing in more than a tangible, final product. You’re investing in a relationship that offers you support every step of the way, from conceptual planning to final design; from mechanical engineering to software development; and from the initial training to after-sales service and support,” says Uren.

Jendamark won the award for Exporter of the Year in 2014

Developing customer-centric operations One of the biggest challenges facing Jendamark is a skills shortage in South Africa. With this in mind the company has developed a lot of inhouse training programs in design, process management and business strategy in general. It teaches all of its employees not only how to make its machines, but how to manufacture them to customer specifications in the export market.

“We have customers in emerging markets such as China and India, which tend to have very manual operations, and then we have customers in the developed world - so the U.S. and Europe who look for total automation. We offer solutions to all these customers and hybrid alternatives for

“When you deal with Jendamark Automation you’re investing in more than a tangible, final product. You’re investing in a relationship that offers you support every step of the way” – Quinton Uren 80

January 2015

Stepper Motors

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JENDAMARK

S U P P LY C H A I N

everyone in between,” explains Uren.

The company also works very closely with local universities, and has recently established an apprenticeship scheme, which is proving very successful so far.

Overcoming distance-to-market challenges Everything Jendamark does, every decision the company makes, is driven by customer demand.

It manufactures all its systems in South Africa, however its distance to market can be a challenge.

“Our machines are quite large so we have an additional eight weeks of shipping and customs clearance before we reach markets in the northern hemisphere,” explains Uren. “With this in mind we have to be ahead of the curve and ensure our customers want our products. We have to work closely with them and listen to their needs to predict the solutions they will require in sixmonths, one-year, three-years time.”

Catalytic Converter Stuffing

Research and development To second-guess the next big market trends, Jendamark has recently established its own R&D department, made up of experts within the business. “The newly formed team is working on standardization of equipment and systems, product development and market analysis,” says Uren.

The R&D team develop new solutions, build prototypes, test them in-house and then ask customers to come and take a look before taking them to mass production. It also works on w w w. j e n d a m a r k . c o . z a

83

JENDAMARK

“We are investing in manufacturing, R&D, tooling and people management. We will continue to build relations with customers and find out what they need for future growth” – Quinton Uren

developing CAD and CAM solutions and MES software.

Once a new solution is approved, it is manufactured in South Africa. Often the customer will visit the factory to sign off the machine, at which point it is disassembled then packed and shipped by Jendamark. The company will then send a team of engineers to the customers’ factory and unbox, reassemble and re-commission the machine. Those same engineers will also train the customer and offer support while the new team takes over.

Jendamark has gone from 100 percent local development to exporting 97 percent of its products in the last 10 years. In the next five

Some of Jendamark’s current customers 84

January 2015

S U P P LY C H A I N

years, this level of export is expected to continue, with the U.S., Europe, China and India earmarked as the next big territories. “We are investing in manufacturing, R&D, tooling and people management. We will continue to build relations with customers and find out what they need for future growth,” says Uren.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Offering global solutions Jendamark hasn’t only found success by putting the customer at the epicenter of its business.

“When we first started out as an export business it was hard to get customers to accept South Africa as a manufacturing destination. Once they get over the surprise that we have the expertise they started to recognise the global solutions that we could offer. We have 11 different languages in the region so its hard to get operators to understand text instructions, with this in mind, we developed symbolic and video based instructions, which made out machines universally understandable. This has been incredibly well received in the sector, which constantly faces issues with poor literacy rates and imported labour.”

Jendamark is a South African company with a global outlook, underpinned by a commitment to people. The company to recognizes that its people – be it customers or employees - are its greatest strength and main asset, and with that understanding it will develop and grown long into the future.

Port Elizabeth, South Africa FOUNDED

1989 EMPLOYEES

Not disclosed REVENUE

Not disclosed PRODUCTS/ SERVICES

Manufacturing

w w w. j e n d a m a r k . c o . z a

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Kings Transport & Logistics

Kings Transport & Logistics Mapping Ro

Metropolitan Provider in Australia, Auckla Written by: Andrew Rossillo Produced by: Nick Ledue

oute to Most Successful

and and New Zealand

KINGS TRANSPORT & LOGISTICS

Krings Transport & Logistics Executives at the 2014 Sigma Gala Dinner

T

he Kings Group are one of the top market leaders in the metropolitan transport and logistics market with offices across Australia in Melbourne, Sydney, Brisbane, Adelaide, Perth & Darwin as well as New Zealand in Auckland.

Kings Transport & Logistics specialises in local metropolitan urgent on-demand couriers and taxi trucks, 3PL warehousing and distribution, permanent vehicle placement and company owned 88

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equipment solutions.

Kings was established with the ambition of providing the highest quality transport services.

Service is paramount to their success, which has allowed them to become one of the fastest growing transport companies in Australia and New Zealand. “Our goal is to be the biggest and most successful metropolitan transport and logistics provider in Australia, Auckland and New Zealand,�

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said Kings Transport & Logistics’ Executive Director & Chief Operating Officer Aaron Cole.

Among the most significant features of their business, Kings lists safety systems and processes, innovative technology and IT solutions, flexible partnership approach, blue chip experience, high level of senior management access and communication and structured account management.

Kings understands that every client has their own specific requirements and expectations when it comes to their transport and logistics. Kings’ commitment to excellence and their flexible partnership approach ensures that their clients can focus their attention on their own business needs rather than spending valuable time and resources on their transport.

“We work very hard to build purpose-built solutions for our customers. One of our primary focuses is on reducing transport consumption, which delivers a reduction in the actual unit rate of the transport costs. You

do have to address both, but companies have a deep desire to reduce their consumption.

That is accomplished through purpose-built solutions, specific vehicle designs and looking for deficiencies within their businesses to see where the waste is. This represents some of the more significant elements that comprise our competitive advantage,” said Cole. All these elements of applying continuous improvement to the work they do for their clients naturally improves their own business as well.

“We’re a very agile and flexible business, yet we’ve got the size and ability to inject capital into continuous improvement activities. That’s a really important point for where our business sits and where we’re positioning ourselves in the market.

Particularly from a logisticalsolution perspective there’s a lot of work that needs to go into managing assets and designing vehicles to specific solutions.

And there’s a lot of capital that needs to go into this along with the IT and safety solutions of our w w w. k i n g s t r a n s p o r t . c o m . a u

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Light duty

Who are we?

Mitsubishi Fuso trucks have been sold in Australia for more than 40 years. We are a dedicated business unit of Mercedes-Benz Australia/Pacific Pty Ltd with our head office in Liverpool, Sydney. We offer a comprehensive range of approximately 90 truck and bus models covering the light, medium and heavy duty truck market segments. We have a national dealer network of approximately 40 dealers who sell and support our products.

Why fuso?

Fuso have long been known for producing very reliable and highly durable trucks and we are very proud of this well-deserved reputation. Our trucks have everything you need to get the job done in comfort. You’re sure to find one from our range that is ideal for your specific application.

When you deal with Fuso, you’re buying more than just a truck with a competitive price tag, you’re buying a business solution and support package designed to always keep you moving. And Fuso Financial can even help make buying and insuring your Fuso truck quicker and easier.

Medium duty Building & maintaining your fleet Fuso is the smart business solution for fleet managers. Tell us what you want to achieve and we’ll make it happen. We can manage the entire process; from helping you spec up what you are after to managing body builders, fitting accessories and delivering the completed truck where ever you need it in the country. We’ll keep you in the know during all stages of the process so you have the peace of mind and confidence that we will deliver what we promise.

Fuso financial As a dedicated financer for FUSO, Fuso Financial can offer your business a wide range of flexible options: Tailored finance solutions Comprehensive insurance Contract maintenance

Call 1300 429 134 or visit fuso.com.au to find out more.

^ 30,000 km or 12 months, whichever occurs first. These intervals are based on normal operating conditions and may be reduced when operating under severe conditions. Fuso Financial is a regist MBFSAu. Fuso is distributed by Mercedes-Benz Australia/Pacific Pty Ltd ACN 004 411 410. Bluetooth ® is a registered trade mark of Bluetooth SIG.

WE WON’T BE

BEATEN

ON VALUE! LIGHT DUTY Canter is our light duty truck range covering GVM’s from 3,500kg to 8,500kg. We believe Canter is the best light duty truck in its class. But don’t just take our word for it.

We invite you to check one out for yourself, take one for a test drive and compare it against what our competitors are offering.

MEDIUM DUTY Fighter is our medium duty truck range covering GVM’s from 10,400kg to 24,000kg. Fuso Fighters are very versatile trucks suited for a wide variety of applications.

With a driver ISRI suspension seat and airbag for improved comfort and safety, passenger door transom window for improved vision, class leading 30,000km^ service intervals and Allison automatic transmission of selected models for easier driving, it is easy to see why many customers want a Fuso Fighter in their corner.

HEAVY DUTY

Heavy duty

When your business needs to deliver, Fuso Heavy Duty is your greatest asset. Suitable for a wide range of applications, every truck in the range is a prime example of our thinking in action. At Mitsubishi Fuso, we put drivers first, with your comfort and safety as top priorities. Even after the most demanding day, you’ll feel the benefits of a working environment tailored to your needs.

FUSO IS GIVING YOU MORE THANKS TO: More than 40 years in Australia A comprehensive range of quality products supported by a national dealer network Best service intervals of any Japanese truck Sat-Nav multimedia unit with Bluetooth® and 3 years map updates as standard Roadside Assistance Support Hotline (for new and existing customers) Protect your investment with our SMARTCOVER scheduled service parts and SAFEGUARD maintenance programs.

EVERYTHING YOU NEED TO GET THE JOB DONE AT A GREAT PRICE.

tered business name of Mercedes-Benz Financial Services Australia Pty Ltd ABN 73 074 134 517 AFSL 247271. Finance available to approved business customers of

KINGS TRANSPORT & LOGISTICS various customers, continuously improving our internal systems for our offerings to our clients and harmonizing these elements along with the other programs that we have. A lot of the smaller players in the markets we play in don’t have the ability to inject capital into certain tasks. The bigger players that can inject capital tend to be slow and cumbersome businesses. Therefore, we feel that we are positioned in a sweet spot where we can do both with the ability to be agile and inject capital,” said Cole.

Focus on Quality and Safety The Company is proud to service a cross-range of industries, many of which are household brands.

Kings is staffed with professional

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drivers, sales, administration, and operational personnel who are focused solely on meeting their clients’ requirements. Kings Group has a diverse fleet mix of over 1,500 subcontracted and company owned vehicles, ranging from motorbikes to prime movers, plus an array of specialised vehicles, including power tailgates, crane trucks and an array of specialist trailing equipment. Their drivers deliver anything from a small envelope to a semi trailer load of pallets or steel.

“Everything we’re able to accomplish is underpinned by the talent and quality of the people we have in our organisation.

We invest a lot of time into our people. This allows us to work on our competitive advantages

We’ve a very strong focus on delivering absolutely everything we say we’re going to deliver. We drive efficiency, improvements, consumption and cost reductions.”

– Aaron Cole, Executive Director & Chief Operating Officer

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Freight and Courier Software Management Systems

Fujitsu understands the unique challenges faced by the courier and transport industry. Through our extensive experience we have created a range of software products which provide best-of-breed solutions for your industry.

Contact Mike Bull, Manager Transport Systems on +64 9 921 8001 or email mike.bull@nz.fujitsu.com www.fujitsu.com/nz/freight

Sydney’s Premier Tyre Service Our experienced team can advise you on the best products for the ultimate performance & safety of your vehicle: • • • • • •

Leading independent supplier of tyre services to the Sydney metropolitan area and beyond.

We specialise in truck, passenger and oo the road tyres, supplying new and retreaded tyres, maintenance, repairs and fleet inspections.

24-Hour Breakdown Assistance

1300 14 TYRES

E: service@southerntyre.com.au

www.southerntyreservice.com.au

NEW TYRES NEW WHEELS & RIMS RETREADING WHEEL ALIGNMENTS WHEEL BALANCING FLEET INSPECTIONS

KINGS TRANSPORT & LOGISTICS in safety. We’re really strong in that area and have a terrific safety record. Our premium focus and execution of safety also proves to be a competitive advantage in promoting greater confidence for companies in deciding to work with us. In addition, we have very strong industry leading initiatives for our learning and development processes,” said Cole.

“From our perspective, when you look at industry accreditation and quality systems, that’s just part of business. I’d like to think that the customers we’re doing business with would have the basic expectation that we’d have those accreditation and quality systems in place. For us, we’re looking at what else we can do in regards to specific solutions that we can provide in helping to reduce transport consumption and waste for businesses and do it safely,” said Cole.

“I challenge our safety and learning development area to assist the overall transport market, not just our own individual business. We look for ways to positively impact the entire

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industry. We want to share what we learn and develop because we want to make the whole industry safer. There’s a real social responsibility here,” said Cole.

Video SOP Among Kings’ many significant points of difference that separate them from their competitors is their comprehensives dedication to safety education, especially as it relates to their drivers. In 2013, the Kings Group took the next step within its Learning & Development Team and commenced a project to convert many of the existing safety procedures (SOPs) into high quality video SOPs (VSOPs).

Through the use of available technology and utilising a dedicated YouTube training channel, the Safety and Learning and Development Departments combined to produce roleand task-specific training on some of the key operations procedures. Since the Company’s introduction of VSOPs in 2013, these videos have continued to grow throughout the business. w w w. k i n g s t r a n s p o r t . c o m . a u

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KINGS TRANSPORT & LOGISTICS

In addition, growing client collaboration also promotes increased effectiveness and reach.

“Our Video SOPs have been a really significant factor for both internal and external applications.

People learn in various formats, and this allows them to learn through visual and audio aids, promoting a more comprehensive learning experience. Video SOP has been really strong, 96

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enabling us to improve the quality of service we can offer through driver training, safety protocols and specific operational requirements. And from a customer’s perspective, we also put together customer-specific video SOPs. For example, if we’ve got a driver going to do a certain task, before they do that task, we can provide them with videos of route rides, including video of what’s happening on and off site,

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which helps with implementation and transitioning,” said Cole.

Most Outstanding Contractor Safety and Environment Kings doesn’t just have the programs, they have the proof.

They are the winners of the Most Outstanding Contractor to the steel industry for the ‘13/’14 year in the safety and environment category. “This comes back to our comprehensive safety systems, and the way the way

that we audit our internal safety systems,” said Cole. In addition, Kings also conducts auditing via external systems through the natural process that occurs when new and existing customers review the Company’s systems, such as inquiries regarding driver induction, driver training and ongoing refresher training. Kings’ strength in that space continues to promote the Company’s growth in the steel and construction w w w. k i n g s t r a n s p o r t . c o m . a u

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Kings Transport & Logistics, winners of Outstanding Contractor, Safety & Environment in the steel industry

KINGS TRANSPORT & LOGISTICS industry and beyond.

Cole went on to discuss a cornerstone of their safety program: “We’ve got 26 toolbox topics that we rotate weekly throughout the year. For example, our drivers within the steel industry will be toolboxed every week on a different topic,” said Cole. The Company is careful to monitor this training, checking for opportunities to reinforce specific training topics as they relate to certain times of year and conditions that coincide. “As we head into the Christmas season, everyone’s extra busy, and everyone’s in a rush. So, we look at this particular time and see that it’s especially important to remind our drivers to slow down, mind their safety protocols and apply due diligence to their safety and quality checklists,” said Cole.

At all times, Kings applies the utmost responsibility towards their safety policy referred to as Deliver Zero. This policy enforces delivering zero injuries from both inside and outside perspectives regarding zero lost-time and zero medical injuries. “We have

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a zero tolerance for anything that jeopardizes the safety of our people and the public. So we strongly encourage the right safety behaviours in our business, and we reward those behaviours.

We do everything we can to promote and encourage safety.

And we want to attract people that have the same attitude toward safety and display the same behaviour,” said Cole. From attracting top talent to improving efficiency, there is a wide range of benefits that naturally flow from maintaining such comprehensive safety measures, pervading throughout the business internally and even attracting new outside business.

“Everything about safety in our business gets driven from the top down. Our Group Safety Manager reports through to me, the Director of the business. This means our safety messages come from the top. I think that’s a really important part of driving the right culture in a business. If you want to drive change or behaviors or improve aspects of a business, it’s really got to come from the top down. These messages then carry w w w. k i n g s t r a n s p o r t . c o m . a u

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KINGS TRANSPORT & LOGISTICS

a lot more weight. Our people really understand the priority and importance of these things in our business,” said Cole.

Furthermore, these programs and processes also aided in Kings’ receipt of the commendation from the Transport and Logistics Industry Skills Council at the annual Awards for Excellence Dinner this past April for the ‘Return on Investment in Skills Award’.

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“That was based on our driver induction program. Drivers have the ability to access materials via our Deliver Safe app that we created within our business.

All our drivers and staff have access to our online materials and Deliver Safe app, which include driver induction information and video SOPs to make sure they’re operating as they should be,” said Cole. Much of the Company’s success with these programs is

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we’ll conduct a JSA [job safety analysis] prior to engagement of that task or contract. A lot of work goes into our processes before day one of the actual project even begins, significantly reducing the risk of injury,” said Cole.

based on ensuring convenient, flexible and any-time access to helpful, multi-faceted information.

“When we talk about reduction of lost-time injuries, we need to prevent the accident from occurring in the first place. Much of that is achieved through our culture, increased awareness and encouragement and rewarding of safe behaviour. In addition, if we’re undergoing a task that we perceive has inherent risk,

Custom IT Solutions From an IT perspective, Kings have an in-house IT department with the ability to custom build highly effective solutions for their customers. “The systems that we put in place, they’re not off the shelf. We listen to what the customer has to say. We’ve created our own IT platform; particularly in permanent vehicle arrangements where there’s an EDI transfer between us and the customer. We take advantage of the opportunities to improve efficiency there,” said Cole.

“This includes bar-code scanning and taking photos of POD’s at delivery points. We also send out proactive alerts to customers to let them know exactly when their deliveries are coming. The point is whatever

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KINGS TRANSPORT & LOGISTICS parameters or rules the customers want, we can build it into a solution that we’ve got. We really try to assist not just the experience our customer has with us, but also the experience of our customers’ customers. We feel that’s a really important part of the chain. We really work on that aspect of customer service and supply chain delivery process,” said Cole.

“Oftentimes, we find that our customers want exactly what we offer from our ProTrack System.

However, for example, with Sigma, a key customer of ours, we have a custom system built just for them, which is built off the back of our ProTrack system architecture, but with some significant modifications that truly suit their business,” said Cole.

“As another example, we have a very reliable geo-coder in our systems. So, when the driver crosses a certain boundary, for example, 5km out from the point of delivery, an automated SMS or e-mail is sent to the customer, indicating exactly when the customer can expect their 102

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delivery,” said Cole. This provides a number of benefits, including making sure the customer is there to process the delivery and ready for the fastest and most efficient delivery processing possible.

Kings can customise based on distance, time, ability to deliver photo PODs, etc., to match the specific needs and wants of their customers, which tends to vary significantly between clients of different industries. “We clearly communicate what we have to offer to our clients, describe our flexibility regarding those offers, and conduct needs analyses to determine their exact needs and wants, determining how we can work together to deliver those solutions,” said Cole.

Furthermore, Kings looks for partners that match their own capacity to affect positive change with agility and strength. This made partnering with Leopard Systems and Fujitsu NZ a very natural choice. “We have great relationships with both of these partners who are leaders in their field. Both are large enough to support the Kings business and

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also developed specific systems for Kings, including dedicated client systems for customers such as Sigma Pharmaceuticals’ On-Track system. Kings has also made significant gains through the use of Leopard’s permanent vehicle management system called Net Track. “In the past 12 months, Leopard has developed according to our request to expand the mobility software to be compatible with iOS Apple and Android for smartphones – Aaron Cole, Executive Director & Chief and tablets, enabling much Operating Officer quicker technology compared to the PDT devices on the market,” said Baker. Partnering with are agile enough to develop their Leopard has also granted Kings systems to suit our changing exceptional abilities such as: needs,” said King’s General photo capture features, providing Manager of IT Andrew Baker. benefits such as delivery “Kings has always been ambitious confirmation at work sites as when it comes to introducing new well as increased confidence features and technology solutions of recipient; and Geo-Fencing – both Leopard and Fujitsu have (through Google API license) helped us realise these ideas.” with built in notifications to send Leopard Systems delivers customer updates at various driver-based mobility/PDT stages of delivery. software which integrates with Kings incorporates Fujitsu NZ’s the Fujitsu-produced TMS that TMS system called Despatch Kings also uses. Leopard has Master, which the Company

“Our goal is to be the biggest and most successful metropolitan transport and logistics provider in Australia, Auckland and New Zealand.”

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KINGS TRANSPORT & LOGISTICS employs for job bookings, job despatching and monitoring, customer-based website portal for job viewing, GPS, invoice management and more. “Fujitsu also provides us with the GPS mapping for operators to track drivers. The GPS information comes from the Leopard-based driver mobility software,” said Baker. Working closely with Kings to develop custom solutions, Fujitsu delivers a comprehensive host of modifications, which include: Web Track, enabling customers to enter their job number, date and city to track their job live, available as a mobile app, complete with strong privacy and security measures; and EDI integration where Kings’ systems receive job orders from their customers’ systems via FTP or Web Services.

Factors Contributing to Steady Growth Among other solid factors, the acquisition success that Kings has enjoyed over the years continues to help promote the steady growth of the Company.

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In addition, Kings continues to not only win new business but also retain those clients. “In our business, our philosophy and our approach is that you don’t win a contract until they ask you back. We don’t consider ourselves successful until they roll the contract over with us,” said Cole. Kings does everything within their power to go above and behind to exceed client expectations, deliver a robust continuous improvement program and deliver customised needbased solutions, preventing their customers from ever feeling the need to open back up to the market after their initial contract.

“We’ve a very strong focus on delivering absolutely everything we say we’re going to deliver. We drive efficiency, improvements, consumption and cost reductions.

And all of that is underpinned by the staff. We have many employees who’ve been with the company for a long time, bringing a great deal of experience to the table. Our staff genuinely care about their work, our company and our clients. They treat this

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business like it’s their own,” said Cole.

Furthermore, Kings develops and maintains strategic partnerships with companies to further strengthen, enhance and increase their client offerings. “We have very strong strategic partnerships in the steel and construction industries. We work with OneSteel, BlueScope, CSR, and concrete pre-cast businesses.

We also have partnerships with Sigma, Schweppes and other FMCG and retail clients.

We really want to grow our business along with the strategic companies we’re involved with.

On top of that, because we are a diversified business, we work to protect ourselves against risk from any one vertical market.

Strategically, we look at our business like a stock share portfolio, balancing our business over a number of different areas, featuring partnerships with a number of businesses across different industries. We’re very strong and stable because of this,” said Cole.

“The ability for our business to win The Most Outstanding Contractor for Safety and Environment in the steel industry, as well as our recent achievement of The Most Outstanding Services Supplier for the Sigma Pharmaceuticals business, and our ability to confidently service both of these distinct areas with completely unique needs validates the strength of our business,” said Cole.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

XNotting Hill Victoria, Australia FOUNDED

1991 EMPLOYEES

800 REVENUE

$190 Million PRODUCTS/ SERVICES The Kings Group are one of the top market leaders in the metropolitan transport and logistics market with offices across Australia in Melbourne, Sydney, Brisbane, Adelaide, Perth & Darwin as well as New Zealand in Auckland.

They specialise in local Metropolitan Urgent on Demand Couriers and Taxi trucks, 3PL Warehousing & Distribution, Permanent Vehicle placement and Company Owned Equipment Solutions.

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Rail Track Association Australia:

The Rail Track Australia Association (RTAA): Pursuing of Rail Track Infrastructure

From Small Beginnings – the Story Continues to Grow Written by: David Bainbridge

g and Promoting the Interests

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T

he 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 108

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were held in major locations in 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

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to provide technical and editorial assistance to the publication while also regularly contributing articles.

agreement with the Australasian 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 w w w. r t a a . o r g . a u

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the most popular social events on 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 w w w. r t a a . o r g . a u

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deliver a more member-focused 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 112

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focus areas. These include: 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

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that are recognised as recordable 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 w w w. r t a a . o r g . a u

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logo and website representing 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. w w w. r t a a . o r g . a u

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