Auslec Solutions 02 by Chris Bright

Print post no. PP255003/09661

AUTUMN 2010

CO NTEN TS

04 Out and about 08 Branching out

10 Distributors say they add value, but how do they prove that? 14 Why everyone wants to ‘buy’ Auslec 18 Product cut 21 Energy efficiency and you... 22 Branching out 28 True supply chain optimisation that creates enduring value

Published By L&H Group A.B.N. 19730 781 473 456 Lower Heidelberg Road, Heidelberg VIC 3084 Australia Ph: +61 3 9243 3555 www.auslec.com.au Editor Paul Stathis Ph: +61 3 9381 2952 pstathis@westwick-farrow.com.au

Cover images supplied by: © iStockphoto.com/Anatoly Tiplyashin/Silvia Uhrig

Art & Design Melissa Kallas Ph: +61 2 9487 2700 mkallas@westwick-farrow.com.au Associate Publisher/Advertising Gavin Karthaus Ph: +61 3 9381 2952 gkarthaus@westwick-farrow.com.au Production Manager Julie Wright Ph: +61 2 9487 2700 jwright@westwick-farrow.com.au Produced on behalf of L&H Group by

A division of Westwick-Farrow Media. A.B.N. 29 001 621 861

Cnr. Fox Valley Road & Kiogle Street, (Locked Bag 1289) Wahroonga NSW 2076 Australia Ph: +61 2 9487 2700 ISSN 1837-8021 All rights reserved. Reproduction in whole or part without the permission of the publisher is strictly prohibited. Copyright L&H Group. Opinions expressed are those of individuals and are not necessarily those of the publisher. All information is believed to be correct at time of publication. All reasonable efforts have been made to contact copyright holders. All material published in this magazine is published in good faith and every care is taken to accurately relay information provided to us. Readers are advised by the publishers to ensure that all necessary safety devices and precautions are installed and safe working procedures adopted before the use of any equipment found or purchased through the information we provide. Further, all performance criteria was provided by the representative company concerned and any dispute should be referred to them.

Welcome. Welcome back! You are reading issue 2 of what has become our flagship publication, Auslec Solutions. As I mentioned in our inaugural issue, our aim with Auslec Solutions was to inform, educate and entertain you and, based on the feedback and comments we continue to receive, I’m glad to say it appears that we have achieved that goal. Auslec Solutions is much like your local Auslec branch in that it is full of knowledge, products and ideas. Collectively as a business, we have literally thousands of years’ experience at your disposal (take a look at our story ‘Auslec … the life of’ in this issue to see what I mean), which can translate to real benefits for you and your business. In this issue, we look at the benefits of integrated supply chains and what it means to your business, along with the much used but often misunderstood term ‘value-add’ — is it really more than just cheaper products? We also talk to two branches on opposite sides of this great country — Welshpool in Western Australia, where James Shepherd tells us about his team and customers, and Gladstone in Queensland, where Neville Sforcina has some interesting tales to tell. It’s not often that AC/DC and Country & Western music are talked about in the same sentence. Check out ‘Out & About’ starting on page 4 to discover the link. We also have over 40 products from leading manufacturers profiled in this issue — all of which, and more, are available at your local Auslec branch. Well, I sincerely hope you enjoy reading this issue of Auslec Solutions as well as perhaps learning something new. If there’s anything you’d like us to cover or discuss in an upcoming issue, why not let your local Auslec branch manager know or email us at solutionsmagazine@auslec.com.au — we’d love to hear from you. Best regards, Robin Norris Chief Executive Officer L&H Group

out *

Self-inflicted hearing problems

Would you like a song with that?

AUSLEC

www.auslec.com.au

Drop in to Auslec’s Emerald, Queensland branch and you’ll discover that Jason Kemp, Branch Manager, is also Jason Kemp, country music star. Raised in St George, in western Queensland, Jason grew up listening to Jim Croce, Buddy Miller, Merle Haggard, Townes Van Zant, Neil Young, James Taylor and Cat Stevens. He started touring at 16 with the ‘originals’ outfit ‘Midnight Curfew’ and attended the prestigious Tamworth Country music festival. By 18, he was managing Full Steam Ahead Studios in Brisbane, producing up-and-coming and established acts.

Touring for three years from 2004, Jason played at festivals, ute musters, tractor pulls, B&S balls, rodeos, fairs, truck stops, Hard Rock Cafes and at every bar, club and hole-inthe-wall he could find, culminating with being awarded the prestigious TIARA Australian Independent Songwriter of the Year in 2009. Many of you may have seen Jason on stage when he led the opening of the Brisbane Connections concert last year in a line-up that included music icons Dragon, Mark Seymour and the Choirboys. Jason spent the past five years putting together his latest album entitled ‘Rivertown’, which will be released mid-2010 and will be available through all good music stores and, presumably, on the counter of the Auslec Emerald branch!

On Tuesday 16 February, 120 staff and customers went to work with severe hearing problems, but not incurred from some industrial noise problem. Their ears were still ringing from the thumping good time they had at the AC/DC concert the night before at Melbourne’s Etihad Stadium. The series of concerts marked the triumphant return to Australia of our greatest rock export, AC/DC. Not having toured here since 2001, anticipation was high in the knowledge that, since the average age of the band members is 60, it is unlikely they’ll be touring here again. Among the 61,000-strong crowd at the Monday night concert was a very excited contingent of Auslec staff and customers, all rocking out to AC/DC classics including ‘You Shook Me All Night Long’, ‘Highway To Hell’ and ‘Dirty Deeds Done Dirt Cheap’.

AC/DC’s Black Ice tour sold a record 750,000 tickets in Australia, blowing away Pink’s recent box office records. The Auslec contingent marvelled at the massive stage that takes 180 production crew to set up; transported by 70 (yes, 70!) semitrailers from venue to venue. In 2009, AC/DC made a staggering $105 million, knocking off those other hard rockers, The Wiggles, as Australia’s highest earning entertainers! The red-shirted Auslec crew blended seamlessly (!) with the Angus Younginspired red horns amongst the crowd and followed every step of Brian Johnson as he belted out the anthems that have stood the test of time. Arriving for work the next day with ears still pounding, everyone was left with little doubt that they had been totally Thunderstruck!

and about Let there be light Being at the forefront of technology and innovation is a way of life at L&H, so it’s no surprise that solar energy products that are exclusively designed and manufactured with the harsh Australian climate in mind are being installed around the country by solar-accredited customers of L&H. Over $250 million was spent on solar-related products by contractors in 2009 in the 1.5 to 5 kW range of systems, with that figure set to rise dramatically as the industrial and residential markets look for greener and cleaner renewable energy sources.

out * Doing what we do best

SJ Electric is a Victorian-based electrical contracting firm that services a number of clients with national operations and that have numerous sites located around the country. In one recent instance, the contracting firm required a PPE kit that had to be customised to their specific requirements for installing and working on switchboards for one of their national service contracts.

Shell ‘e-sales’ trial Auslec has been trialling an ‘e-sales’ program with the Shell Refinery at Clyde in Sydney since May 2009. At this stage of the trial, the results are encouraging, thanks largely to Auslec’s Chris Calleja for his efforts in making this a reality. Auslec is now at the stage to roll the program out to all of Shell’s procurement team nationwide. In addition to the obvious benefits that paperless transactions bring, the Auslec branch is also able to significantly speed up turnaround times, as the storeman has the order in the ‘pick’ status within 15 minutes of the order being placed, which is also confirmed at the customer’s end. Additionally, any queries that may arise can quickly be resolved, as the order originator’s name is entered into the system at the time of order. The consolidated invoice report has also been modified to meet the customer’s needs.

and about A very successful two-year partnership with Ford Performance Racing has paved the way for a further two-year deal for L&H Group. “We originally decided on FPR because of the cultural fit between our businesses and because Mark Winterbottom and Steve Richards are the right kind of personalities to mix with our customers and represent our business in the manner we hoped for,” said Martin Dench, L&H Group Marketing Manager. FPR’s Business Operations Director Mark Roworth went on to say “L&H is re-targeting its platform more around activation and the buyer behaviour of its customer … that means we’re going to see a different branding strategy on the car but it retains the L&H Group as a major partner of the team”.

“Custome rs are encouraged to purchase certain types of products to be eligible for tickets and we’ve seen that working in practice; guests in the L&H suite are there because they’re actually changing their purchasing patterns to attend the races.” Only three short years ago, L&H Group was a V8 Supercars novice; however, now, its program — which centres on FPR and the L&H 500 at Phillip Island — is an integral part of L&H’s business. The company attributes its sponsorship success to FPR’s professional operation as well as the high popularity of V8s used and owned by tradesmen, 78% of whom listed motor sport as their number one or two sporting interest in a recent survey conducted by L&H.

AUSLEC

The major challenge for SJ Electrics was to find a single supplier that could source all of the individual items from multiple manufacturers, assemble them and then invoice it all as one complete kit. On top of that, the supplier then had to be able to deliver it all to SJ Electric’s service network nationwide. The kit also had to comply with the customer’s exact requirements. By partnering with the L&H Group, SJ Electric was not only able to source the kit to meet its specifications, it was also able to reduce the overall cost of the kit and reduce the associated freight charges at the same time. This relationship has allowed SJ Electric to do what it does best — service the electrical requirements of its national customer base, leaving the L&H Group to do what it does best as a true B2B solution provider. The customised PPE kit contains nonconductive matting, a lock-out kit, an expandable safety barrier, a low-voltage rescue kit, an arc-flash visor and holder, a cable lockout device, a universal lockout device and a pair of insulating gloves.

www.auslec.com.au

FPR relationship — new livery launch

out *

Just doing our job ...

L&H Group and ANDRA — Smokin’!!

AUSLEC

www.auslec.com.au

L&H Group is excited to announce the commencement of a valuable relationship as the official electrical supplier of the Australian National Drag Racing Association (ANDRA) Pro Series Drag Racing. Boasting established tracks in New South Wales, Queensland and Western Australia, and soon to be Victoria, L&H is now the preferred electrical supplier providing product, service and advice towards ongoing maintenance and additional building requirements to over $65 million worth of venues.

“With national TV exposure via ONE HD’s coverage of ANDRA Pro Series events throughout the year, you’re bound to see more of the L&H brand alongside some unbelievable drag racing,” said Claude Picinali, National Sales Manager for L&H. “This new alliance with ANDRA not only provides us the opportunity to host our customers at drag racing venues throughout Australia, it also means we can offer our customers yet another experience that is unmatched by our competitors. It aligns well with our V8 Supercars program and provides an exciting opportunity to leverage our sponsorship to build solid business relationships at these events.” The development of L&H’s relationship with ANDRA stemmed from feedback from a number of branches that had been hosting customers at some of ANDRA’s Pro Series events. For all the latest news and views, check out www.andra.com.au.

CEQ Electrical is a 10-year-old electrical contracting firm that’s rapidly going places. Based in Loganholme, Queensland, CEQ has already amassed considerable experience in the application of the latest project management techniques for major electrical installations. As all materials are ordered direct from site and all correspondence and communications are initiated on site, CEQ needed a partner capable of streamlining their purchasing with the ability to understand their business. Enter Steve Denisenko — L&H Queensland Sales Manager — who, with his team, liaised directly with CEQ’s Managing Director Bill Bartley. Steve said: “I know we have superior customer service capabilities and this, along with our stock breadth,

were key elements in securing the CEQ business.” Bill Bartley went on to add: “A key component of my role at CEQ is to assume full responsibility for successfully carrying out all facets of the project — from the setting up of the project site team, right through to the final handing over of the completed project. We need partners who, like the Auslec Emerald branch, understand the complexities of what we do. We source our requirements, not by who has the cheapest price, but who can offer the overall best value to us across multiple ongoing projects.” Feedback from Bill’s project managers has been excellent with regard to Auslec’s overall performance. He concludes: “In fact, Auslec has set the benchmark that we now expect our other suppliers to follow.”

and about Auslec @ QME Make a note in your diary now! From 27-29 July, Auslec will be exhibiting at the Queensland Mining and Engineering Exhibition (QME) in Mackay, Qld. Auslec understands that the world of mining is a tough and demanding one, where innovative thinking can make all the difference in where you sit on the ‘production cost curve’. Drop by stand number 1270 to see a range of products and services that can point you in the right direction to overcome many of your challenges in reducing costs.

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*branchingout

As Welshpool is one of the main

long and short measuring tapes, grinding

industrial suburbs of Perth, the typi-

discs and thread taps; janitorial products

cal client mix of the Auslec branch

like brushes, mops, buckets and clean-

consists mainly of mining, oil and gas,

ing chemicals; survey marker paint and

manufacturing, engineering and service

flagging tapes; and plain, galvanised and

provider companies, as well as electrical

stainless steel fasteners.

and mining contractors.

“We carry such a wide and varied

The diversity in clients is echoed

range of products because it matches

in the diversity of the products that

the requirements of our customers,”

the branch stocks and the expertise

adds Shepherd. “We have nationwide

of its staff.

contracts with some of our larger in-

Branch Manager James Shepherd

dustrial clients. But that often involves

says that to service these custom-

more than just stocking the products

ers properly, his branch needs to be

they use. It often requires going that

staffed by people with specialist skills

‘extra mile’ to make sure the customer’s

and expertise: “We have dedicated

best interests are cared for. One instance

team members to look after the

of that extra mile is our ability to offer

different segments of our business.

our customers excellent freight rates.

This includes the mining and oil and gas sectors, right through to the single-man contracting companies. We have staff that are responsive to the needs of all of these and more customer segments, as they understand their businesses very well. And with over 120 years’ experience between us, we know our customers’ markets very well. “Our branch focuses on having multi-tiered relationships

AUSLEC

www.auslec.com.au

with our customers — with

their maintenance planners and their

Because Auslec has outstanding freight

stores, purchasing, trades and engineer-

rates that we can see upfront, we can

ing people. This enables us to better

pass that on to our customers. Not so

understand our customers’ needs, so

long ago, one customer told me that

we can become a ‘supply-and-sourcing’

his unallocated freight cost his business

solution to them.”

around $60,000 each year. Since that

The branch services all of WA, provid-

conversation, we’ve been able to give

ing comprehensive support to its large

him his freight costs upfront when he

number of clients, many of whom have

orders goods. Or even if he’s just quot-

operations throughout the state. At any

ing, he can accurately allocate freight

particular time, the branch carries ap-

costs to the job. Because our rates are

proximately $1.3 million in stock. This

so much better than what he was pay-

includes an extensive range of general

ing, we’ve helped him be much more

power and specialist cables — from

competitive. And because we carry such

shot-firing wire to single-core 150 mm2

a range of products, specific to their

flexible cables; a wide range of PPE and

needs, many of our customers use us

site-safety products; power and control

to reduce the number of vendors they

products; hand tools and abrasives, in-

buy from, further improving their cost

cluding socket sets, wrenches, shovels,

of procurement.”

Welshpool, Western Australia Branch Manager — James Shepherd Branch/warehouse floor space — 1200 m2 Number of staff — 13

P: (08) 9451 3433 E: auswelshpool@auslec.com.au

Distributors say they add value but how do they prove that?

lamps, automatic lighting circuit controls, power-saving fluorescent load controllers and high-efficiency electric motors. Or it could involve the replacement of standard fittings with heavy-duty versions that could minimise the maintenance costs of that equipment and perhaps extend the plant’s operating life spans. Product cost management Savings can also be realised in the actual components of the products being manufactured, through material substitution and the format and packaging in which the components are supplied that contribute to decreasing the existing usage and waste. Some possible examples of this activity could include replacing a particular item with one that has an equivalent function but at a lower cost, monitoring a finished product’s sales patterns or upcoming projects so as to flag the opportunity to negotiate special pricing from a supplier, or deferred price increases and reducing component costs with the distributor absorbing the costs to freight the components. Integrated (managed) services savings Further cost savings can be realised by industrial companies in non-core activities, by shifting a number of their operational responsibilities to the distributor through reduced labour costs per hour, labour

hours worked in the areas of supervision, maintenance, delivery, warehousing, training, purchasing, accounts payable, data entry and other non-core responsibilities. Further cost savings could also be realised through the release of certain assets — generally through outsourcing functions such as storeroom management, procurement services, point-of-use delivery and other integrated supply services. Some examples of how this can be accomplished by companies is the deployment of a total integrated supply program managed by the distributor, installation of strategically placed vendor-controlled ministores, the function of a company’s ‘site buyer’ being replaced by a distributor’s staff, the rearrangement of a store layout at an integrated supply site, or the provision of accredited training programs for the customer’s staff to carry out various tasks more efficiently or effectively. Materials management Distributors can provide significant cost reductions through specifically developed logistics and inventory management programs, such as ‘standardisation/rationalisation’, ‘vendor-held’ or ‘vendor-managed’ stocking, ‘consignment’, ‘surplus disposal’, ‘inventory bleed down’ and other materialsrelated initiatives. Typical examples of these programs could include buy-back of unused products after a major project (eg, cable, enclosures), buy-back of stock in preparation for a consignment arrangement, stocking of a range of products by distributor rather than at the customer’s site, rationalisation of product brands used by the customer and standardisation of the product types. Transaction process management Realistic cost reductions can be realised by companies in their order-processing functions, through the management of the transaction process. This becomes manifest in reduced labour cost per hour and/or reduced labour hours in the areas of supervision, maintenance, delivery, warehousing, training, purchasing, accounts payable, data entry and other laborious activities. Such transaction cost reductions can be achieved through various distributor activities including evaluated receipt settlement (ERS), purchase order

www.auslec.com.au

Product and process application There are a number of areas where value can be added to an industrial company as a result of a supplier taking the initiative to introduce new ideas and technologies that can reduce their customers’ operating costs. These could be energy-efficient products that can reduce energy consumption in the manufacturing processes or within the facility itself; or technologies that help improve the production or manufacturing outputs of a plant; or ways to improve the actual processes themselves, resulting in production cost and defect reduction, or to extend the product life cycles. Typical examples of such cost-saving improvements could include energy-efficient

The bar has been raised as customers now expect value-adds as well as excellent service from their suppliers.

AUSLEC

In today’s business environment, most companies have raised the bar in terms of what they expect as a customer from their distributors and suppliers, compared to say five or ten years ago. The standard service levels that most organisations, including industrial companies, expect of all of their suppliers these days are on-time delivery, competitive per-unit pricing and prompt responses to all their enquiries. So if that’s the current level of service that’s considered ‘standard’ in today’s business world — what most industrial suppliers are providing to their customers — then what is it that actually differentiates the range of industrial supply options that companies have to choose from? As an industrial wholesaler, Auslec has spent many years supplying products and services to industrial companies around the country and we constantly enquire of our customers what it is that ‘value-add’ means to them. And what we’ve discovered is that it’s primarily about tangible activities that can positively affect the performance of that company — that is, how a distributor can and does contribute to its customers’ profitability. Now, this is not just some academic analysis to present spreadsheets full of numbers to management to examine — it’s a real measure of how suppliers can provide tangible operational and financial benefits to their customers. Let’s consider a few areas where true added-value can be derived by such companies from their distributors in a range of specific fields.

“

What

we’ve

discovered

that it’s primarily about

tangible

activities that can positively affect the performance of that company — that is, how a distributor can and does contribute to its customers’

AUSLEC

www.auslec.com.au

profitability.

”

reduction, summary billing, vendor-order direct, reduction in ‘store stock item’ issues, reduction in material receiving and stocking transactions, electronic data interchange (EDI), electronic funds transfer (EFT) and online ordering. Tangible examples of transaction process management could include single invoicing at the end of each month rather than individual transaction invoicing, recipient-created tax invoicing, e-sales portals, vendor rationalisation and the use of distributor-supplied purchasing cards. Customers’ perceptions In talking to a large cross section of industrial buyers, L&H Group have discovered that overwhelmingly, customers believe that value-add was an important selling point from their suppliers. For the most part however, suppliers appear to be vague about what the value is that they’re adding and how much it’s worth. Customers also believe that suppliers place too great an emphasis on product cost when they are in fact, looking for ways to do things better, easier and cheaper. The Value Plus® solution This customer oriented feedback points to the fact this and most other customeroriented surveys point to the fact that customers expect more; and they want that ‘extra’ to be tangible or proven to add value to their business. In the industrial supply market sector, that’s where Value Plus® comes in. Value Plus ® is the industry’s most complete program for cutting supply chain costs. The program is a valuable tool for translating a company’s supply cycle data into a blueprint for dramatic savings and better cost controls. Real-time, real-numbers analysis of an industrial company’s supply and acquisition processes provides important insights into their costs, so that core procurement, operational and management staff — purchasing, stores, upper management, maintenance and operations — can all focus on their core business activities and not be unnecessarily drawn into tedious back-of-house activities. By working closely with our customers over many years, we have developed software that accounts for and assigns a value

Summary points of Value Plus ® ·· Documents our value-add efforts; ·· Lotus Notes based; ·· Standard tool available upon registration; ·· Easy to use; ·· Records proposals and savings implemented or proposed; ·· Allows for the savings to be sorted into categories depend ent upon where they occur in the supply process; ·· Calculates extended savings from information entered; ·· Allows many different types of savings to be recorded, not just ‘piece’ price; ·· Documents such as savings records, customer sign-off and re ports are professionally presented; ·· Collates and totals effort, com pany wide for national accounts; ·· Previous achievements are shared across the network for potential rollout; and ·· Provides a standard reference database to assist others identify savings for their customers.

to every available savings opportunity. Then we provide customers with regular reports on documented savings at each of their locations. These spreadsheet summaries are the perfect way for customers to get the ‘big picture’ on real costs and savings for all aspects of their operations. With Value Plus®, savings documentation is available for any time period (including monthly, quarterly or annually), for specified categories or for all categories within the business, at a specific site or company wide (for national accounts). Fast, quick, point and click Value Plus® is fast and simple. With a few keystrokes and the click of a mouse, users of Value Plus® can review a wide range of cost-saving options. Value Plus® is the easy way to find, and prove, savings in the supply cycle costs. It is another way we’re working to prove our value as the industrial distribution partner of choice.

18VOLT

POWER

GET WITH THE SYSTEM!

DW/18VWA3P/08-09/1612

GRID

Why everyone wants to ` bu yÂ´ Auslec

In case you were wondering what this title is getting at, it is deliberately ambiguous. And of course the answer we give depends on what your perspective is. If you’re a customer (which is probably most of you), then you might think there’s a ‘from’ missing after ‘buy’ ie, ‘Why everyone wants to buy from Auslec’. But if you’re an investor, then the title would read correctly for you. You’re probably all aware that Auslec is a business unit of the L&H Group, which is made up of Lawrence and Hanson, Auslec, Pacific Datacom, Specialised Lighting Solutions and Smarter Clothing. That entire group is owned by Sonepar, a private, family owned French company that specialises in the distribution of technical equipment and solutions for industrial and electricity professionals.

Reliability, responsibility and respectability — good reasons to select a supplier or a company to purchase.

were only $100, but if they didn’t finish pumping the concrete onto the ship that night, they’d miss the high tide and they’d be stuck for another 24 hours. If that happened, the port costs would have tallied into tens of thousands of dollars, all because of the availability of $100 of electrical parts. So I jumped out of bed, spoke to the electrical guys on duty at the port to get the details of what they needed and chased down the parts for them. They had the parts within a couple of hours, the pump was fixed before the sun came up and the ship sailed out that day. The client’s MD gave me a plaque expressing their appreciation for what we did to help them out, but to us, that’s just what it takes to help the customer. We’d do the same for anyone who needed our support.”

Auslec people make the difference

more years at Auslec: “I’ve only been

around Australia to service the specific

with the company for 43 years. Mike

needs of local industrial markets. This

Bennett’s the ‘long-termer’ with 47 years’

is backed up by a sophisticated nation-

so far. And Bob Richards is close behind

wide logistics system that’s designed

with 41 years. So between us, we have

to ensure customers have what they

130 years’ service. You don’t need any

need, when they need it. It’s a culture

more convincing than that to see that

that’s very much ‘in sync’ with our par-

this is a good company.”

ent company’s culture, and we invest

After being referred to as an ‘long-

heavily in infrastructure, systems, people

termer’, Mike wanted right of reply:

our customers want. But many of you would probably say that our people are the foremost reason you buy from Auslec; and we’re as proud as punch of our staff, who all share our culture of wanting to service customers extremely well. Take, for example, three of our longest serving employees — Maurie Simpson, Michael Bennett and Bob Richards, all of whom operate in Queensland. Collectively, they’ve been working at Auslec and the companies that made up Auslec for 132 years. Maurie is a Contracts Implementation Coordinator and has been with us for 43 years. After working that long for one company, you could be excused for assuming Maurie takes things in his stride. But not Maurie — he’s as keen about making customers happy as ever.

“In a nutshell, my job is implementation,” says Maurie with conviction. “I join companies together, matching the needs of my customers with the products and services we provide. “Most of my customers are either industrial companies or involved in supporting industrial companies. So, for example, when the maintenance crew of a mining company rings and wants parts for some piece of equipment that’s just broken down, all that matters to them — and therefore me — is to get it back into operation. It’s not uncommon for a $100 part to stop a $200,000-an-hour production line. “I remember getting a phone call at 1.30 am one Sunday morning (my mobile is always on) from the Port of Brisbane. They were pumping cement into a ship that was scheduled for departure that morning, when the pump broke down. The replacement parts to fix the pump

“Maurie must be getting forgetful in his old age — I’ve actually been with Auslec 48 years. So that’s one extra year he’ll have to put in before he catches up with me. It’s only a matter of time before the ‘Steven Bradbury syndrome’ kicks in and he takes the ‘long-termer’ title from me. Mind you, he’s still got a long way to go to break the record at Auslec, which stands at 55 years.” Mike’s current position is Manager, National Industrial Projects and Services, having worked in many roles over the years at Auslec. Even though heavy industry has changed over time, Mike says Auslec’s culture hasn’t: “The original premise Auslec was based on was to service the needs of Australia’s industrial sectors. Our success is measured on the value that we provide to companies in these sectors. And that value is translated into our branches carrying the right stock, our staff understanding

www.auslec.com.au

do — support industry needs, wherever

AUSLEC

and training to ensure we can — and

Maurie points out that he’s got plenty

We have 29 branches strategically located

the industries we service and having the expertise to present the right solutions, providing training on new technologies and facilitating valuable interfaces between customers and suppliers. “A good example of this is: when a Bill of Materials comes in for a quote, our branch staff often suggest products that might be new or that they believe might do the job better or more costeffectively for the customer.” Mike’s department primarily services industrial projects Australia wide and in New Guinea, but is increasingly being asked to support their Australian clients in large industrial projects in Asia and the Middle East. “We learned a lot about supply chain integration from Hagemeyer US several years ago and we’ve been able to better service clients who have offshore activities because of it,” adds Mike. “The values that we derive and utilise from our other business units means we can increase the reach of our service offerings.” Bob Richards works in Mike’s team

AUSLEC

www.auslec.com.au

and adds: “I think the main reason we’re

“

Between us, we have 131 years’ service. You don’t need any more convincing than that to see that this is a good company.

”

The Auslec story Auslec is a member of the Sonepar PPS (Professional Products and Services) Division. Sonepar is one of the world’s largest electrical and industrial wholesalers, with E11.9 billion turnover, made up of over 180 companies in 35 countries. In 2008, Sonepar acquired the electrical distribution interests of Hagemeyer Australia. The acquisition was part of the sale of the Dutch-based parent company, Hagemeyer N.V. — a global business-tobusiness distribution company. With a long and successful presence in servicing the Australian industrial markets, Auslec was a very attractive acquisition for Sonepar to establish a strong foothold into this region. In 2000, Hagemeyer acquired the ALH Group (Auslec and Lawrence & Hanson business units) from Pacific Dunlop’s Electrical Group. This acquisition was prompted by the strength of the Auslec and Lawrence & Hanson businesses and brands, again allowing a multinational company to establish an immediate and strong presence in Australia.

successful is because we put customers

Auslec was formed in the 1980s when

first — service is everything. That’s what

Pacific Dunlop acquired the independent

customers expect these days. They’re

and specialist distributors of industrial

business-savvy too — they understand

electrical equipment RG Panks, Elanco,

that service comes at a price, and that

WG Watsons, Austral Lighting, Gerard

the cheapest price is not necessarily

& Goodman and Electric House. Once

the most important thing. “One of my clients — a major construction company that I’ve looked after for 20 years — keeps coming to us because we look after their best interests. What’s paramount to them is on-time and on-budget support. “We’re unique in our ability to holistically service major industrial projects — no other wholesaler in Australia can do what we do. And that’s why we can secure such large projects, some in excess of $40 million. “But contracts of that size don’t faze us. We have the capacity and the resources to meet the customers’ expectations and that’s why they keep doing business with us. We also have the staff expertise to source the right materials for them and offer engineering and design assistance as well.”

acquired, these companies were rebranded ‘Auslec’ and placed within Pacific Dunlop’s Distribution Group alongside Lawrence & Hanson. The reason for this aggregation was to ensure the parent company could offer its customer base an extensive range of contractor and industrial product solutions. Through these acquisitions, Auslec has maintained its enviable reputation of not only delivering a comprehensive range of industrial products, but also providing impeccable service and solutions to the Australian industrial market. The last word … Maurie Simpson probably best sums up the reasons why people buy from Auslec: “It’s all about the ‘3 Rs’: “Reliability + responsibility + respectability.” We couldn’t put it any better.

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A v a i l a b l e f r o m & r e c o m m e n d e d b y A u s l e c . U s e t h e locator at www.auslec.com.au to find your nearest branch.

‘Green’ power manager Designed for power conservation, the GP8ESSP Green Power Surge Protector automatically cuts off standby power three minutes after devices have been switched off. The unit is equipped with ‘always-on’ outlets for continuous power to certain devices and can be operated using any IR remote, avoiding the clutter and confusion of too many controllers. Power consumed by appliances while they’re switched off or in standby mode can be as high as 10–15 W per device. And given a number of these devices in the average household, it means that the energy usage can reach up to 22% of all appliance consumption.

Fall-protection kits

AUSLEC

www.auslec.com.au

The ‘First’ range of fall-protection kits offers straightforward fall protection for handymen and commercial tradespeople. The kits are designed to ensure users meet compliance levels required under law to protect themselves, or their workforce, when working at height. The range consists of two kits — Roof Workers kit and Construction Workers kit, suitable for specific worker applications. Each kit comprises all the necessary elements of the ‘A, B, C of fall protection’ to ensure worker safety, ie, anchorage device, full-body harness and connecting device. The kits are packed in a convenient and rugged carry bucket for easy storage and transportation.

Fire extinguisher and fire blanket Vital tools for any tradesman are a fully functioning fire extinguisher and fire blanket that are readily accessible in case of emergencies. The PSA Products Lifesaver fire extinguisher complies with Australian Standards and is available in 1 kg units for ease of handling and use. The fire extinguisher is designed to extinguish Class A (wood, etc), B (flammable liquids) and Class C (electrical) fires and supplied with brackets for mounting in the car or home. The fire blanket can be used to cover oil fires over a stove.

Power tool kit The C12PP4C-22B 4-piece kit is powered by Lithium-Ion batteries and, with over 20 different tools to choose from, is designed for professional and hard-to-reach applications. Included in the kit is the C12DD drill driver that delivers 28 Nm of torque with a 15-position clutch and 0–500 rpm for fast driving; C12ID ¼-inch hex impact driver that delivers 96 Nm of torque and 0–2000 rpm driving; C12HZ Hackzall reciprocating saw that delivers 0–3000 rpm and 275 mm for quick cutting in tight spaces; and C12T torch that features a 90-degree rotating head and integrated magnet for hands-free use, all in a compact package.

AUSLEC

The HIW range of window/panel exhaust fans can be installed from inside a building by one person, removing the hazards associated with installing fans from outside, particularly in multi-storey apartments. The fans produce airflows of 60 L/s (150 mm model) and 120 L/s (200 mm model), with power consumptions of 22 and 28 W respectively. They operate quietly, with the 150 mm model producing only 35dB(A) acoustic output. Made from UV-stabilised plastic, the fans can withstand harsh environments, featuring electric back-draft shutters to create a tight seal from the outside world. The fans are supplied pre-wired with 3-pin plugs.

www.auslec.com.au

Exhaust fans

Gloves for working in the cold The Ninja Ice gloves from Beaver Brands are rated to -50°C and are suitable for use in cool rooms, cold morning starts on the tools, packing frozen supermarket items onto shelves, or just riding a pushbike in cold weather. The gloves feature a two-layer insulated liner that provides warmth and uncompromising grip in both wet and dry conditions. The gloves are available in black (model P4004) and hi-vis yellow (model P4004HV).

Meteor Glasses

VALSP303SM – Silver Mirror

Golden HaWK Premium Deergrain Rigger Gloves

VALSP303C - Clear

aMorsKin HaWK

VALP8174 – Full Finger VALP8174A – Fingerless

VALP8175

Synthetic Leather Mechanics Gloves

VALP2150 VALP2150H – Winterlined

UltiMate Welders Flame Resistant Welding Gloves

VALP039A

Synthetic Leather Rigger Gloves

red Welders

BlUe Welders

BlaCK & Gold Welders

VALP036

VALP038

Cowhide Split Lined Welding Gloves

Exclusive to

www.lawrenceandhanson.com.au www.auslec.com.au

Cowhide Split Lined Welding Gloves

A range of changes is proposed

both industrial companies and electri-

for the commercial building standards

cians to have a better understanding

which will also impact on the electri-

of what they can do in their day-to-day

cal industry. For example, adjustments

activities to practise energy efficiency.

(both increases and decreases) are

Industrial companies are usually the

proposed for the maximum allowable

big consumers of electricity, so these

power density of lighting. Decreases are

businesses are looking to implement

proposed for areas such as retail space,

energy-efficiency measures to reduce

healthcare, schools and laboratories.

their energy costs as well as their

These changes to the commercial

carbon footprint ... and the emissions

building standards will also impact

trading scheme would provide an added

items such as fans, pumps and their

impetus for this.

associated control systems. Maximum

Increasingly stringent building ener-

power allowances are proposed for

gy-efficiency standards and mandatory

air conditioning and ventilation fans

appliance and equipment standards are

and for pumps; and the use of vari-

key drivers for greater energy efficiency

able speed control will be required in

in industry and business. It should come

certain circumstances.

tives designed to encourage more

Minimum energy performance standards

efficiency beyond just the regulated

In Australia, minimum energy perform-

minimum levels.

ance standards (MEPS) for appliances

government are now providing incen-

EcoSmart Electricians program

and equipment are coordinated through the Equipment Energy Efficiency (E3) program. A range of electrical ap-

In 2006, Sustainability Victoria, on

pliances and equipment has been

behalf of the National Framework for

regulated for energy efficiency under

Energy Efficiency, partnered with the

the scheme, including domestic re-

Victorian chapter of NECA to develop

frigerators, single- and three-phase

the EcoSmart Electricians program,

packaged air conditioners, three-phase

which certifies licensed electrical con-

electric induction motors, distribution

tractors with accreditation in energy

transformers, linear fluorescent tubes

efficiency. These electricians have

and their ballasts, refrigerated display

been professionally trained in energy-

cabinets and commercial chillers. The

efficient products, technologies and

MEPS implemented for these products

installations to provide consumers with

mean that it is illegal to import or sell

a complete energy-efficient electrical

products which do not meet the speci-

solution in an industrial, commercial

fied minimum efficiency levels.

or domestic environment.

Building Code of Australia

To assist electricians, along with industrial companies, to gain a better understanding of lighting energy efficiency and the building and MEPS which will

More stringent building energy-efficiency

impact on the lighting market, E3, in

standards have been proposed as part

conjunction with NECA, has developed

of the 2010 update of the Building

a module on lighting as part of the

Code of Australia. This will impact on

EcoSmart Electricians course.

industrial and commercial buildings and

For more information on these and

is currently the subject of a regulation

other energy-efficiency initiatives, talk to

impact statement process being run by

the staff at your local Auslec branch, who

the Australian Building Codes Board.

will be only too happy to assist you.

www.auslec.com.au

as no surprise then that all levels of

AUSLEC

Energy efficiency and YOU ...

Now, more than ever, it is critical for

*branchingout

Gladstone is an industrial city on the

We’ve also conveyed that sense of

central Queensland coast, perhaps

urgency to our suppliers, so they work

best known to the rest of Australia

in tandem with us to respond to these

for its massive coal production and

requests with the same intensity as

exports. It is also the support centre

we do, so we can collectively solve

for an expansive resource-oriented

clients’ problems quickly.”

community that covers thousands of

Like most of Australia’s resources

square kilometres in steel, coal and

markets, the Gladstone region was

LNG industries.

significantly affected by the global

The Gladstone Auslec branch supports

financial crisis (GFC), presenting an

much of the region’s vast and demanding

uncertain economic outlook for its

mining and industrial end users and its

major businesses, many of whom

industrial and C&I contractors who are

were Auslec clients. This presented

diverse in nature as well as location.

quite a dilemma for the branch, which

Branch Manager Neville Sforcina explains: “We service clients in Glad-

had plans in place to double its floor space just prior to the GFC.

stone, the surrounding areas or wherever our customers require support — and that could be anywhere in the state.” With a client base that’s largely heavy industry, the branch staff understand that downtime is an ugly situation, so they respond immediately to calls from clients when they have mission-critical needs. “Service is paramount in our operations,” adds Neville. “Be-

AUSLEC

www.auslec.com.au

cause we deal with such a wide

range of industries and applications,

“Things looked pretty grim back

nothing is considered unusual to us.

then,” recalls Neville. “But we de-

“On top of that, we have a lot of

cided to go ahead with the expansion,

in-house technical know-how, with

knowing that it was necessary, so we

almost 100 years’ experience between

could continue to meet our clients’

us. That enables us to provide two

service-level expectations, especially in

key benefits to clients: we can work

handling their bulk requirements — GFC

with them to quickly get to the heart

or no GFC.

of any issue to help minimise the

“Looking back now, it was clearly the

time to repair, and our experience

right decision. Business is back to its

and inventory management system

pre-GFC levels and there are plans in the

enables us to pre-empt the local

wings to expand the port to double its

market needs. For example, by us

coal-handling capacity, plus building new

having a $200 part on the shelf we

steel and LNG plants in the area.

can save tens of thousands of dollars

“So our decision to double our op-

for a client whose $50,000-an-hour

erations was definitely the right one.

process line has broken down. And

We’re in a great position to continue

if we don’t have that particular item,

our high levels of service to our clients,

we’ll fly it in for them, because we

as well as being able to ramp it up as

understand the importance of getting

our industrial and contractor clients’

their operations back online ASAP.

businesses grow.”

Gladstone, Queensland Branch Manager — Neville Sforcina Branch/warehouse floor space — over 1900 m2 Number of staff — 11

P: (07) 4972 3133 E: ausgladstone@auslec.com.au

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Available from & recommended by Auslec. Use the locator at www.auslec.com.au to find your nearest branch.

Workwear for women

The Drink! Guardian backpack is a highvisibility, carry-on storage facility with built-in hydration pack. Hi-vis orange, yellow, or green backpacks are designed for daytime visibility in high-risk environments, while at night, backpacks with 3M Scotchlite reflective stripes provide added visibility. The backpacks feature breakaway shoulder straps that separate if part of the bag gets caught in machinery, contoured shoulder straps that prevent chaffing and a strapmanagement system. The hydration system features a covered fill-port to keep dirt out, dual tube-ports to reduce snagging, neoprene cover and a bite-valve cover that keeps the bite valve clean and protected.

Safe fusing all the time NHP and WAGO have added terminal blocks for disconnect and fuse applications for wire sizes up to 6 mm2 to the TOPJOB S 2002 and 2006 Series. The fuse terminal blocks are designed for blade-type fuses in applications with higher currents. Disconnect terminal blocks of up to 800 V and 30 A are designed for applications like photovoltaic and high-voltage systems that require electrical isolation. The 2002 Series fuse versions are designed for 5 x 20 mm miniature fuses and are equipped with a hinged (ie, captive) or a pluggable fuse-holder, allowing fuses to be installed in tight spaces.

Re-Form is an eco-friendly sorbent made from a minimum of 70% recycled waste and is available in pad, roll and ‘socs’ configurations. The sorbents offer high absorbency for less wastage, making them suitable for LEAN programs and ecofriendly initiatives, and feature NFPA Class A fire retardancy standards compliance to minimise fire risks. The sorbents are available in ReForm or Re-Form Plus varieties. ReForm Plus has the same absorbency as Re-Form but adds a grey coverstock which is suitable for foottraffic and wiping applications and is perforated. Using recycled materials, the sorbents are claimed to be less expensive than oil-based sorbents.

www.auslec.com.au

Hydration backpack

Eco-friendly sorbents

AUSLEC

The Women’s Workwear range of shirts, pants and shorts is designed to be comfortable, functional, durable and flattering for women. The shirt has a feminine shape, with an option to convert it to short sleeves. Side splits allow the shirt be worn untucked, and the tail of the shirt ensures extra coverage when bending. The shorts are a longer style, ending just above the knee, and feature small side splits for added movement. The pants and shorts sit comfortably below the natural waist line. Both are designed to be functional with internal pockets large enough for mobile phones.

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A v a i l a b l e f r o m & r e c o m m e n d e d b y A u s l e c . U s e t h e locator at www.auslec.com.au to find your nearest branch.

SAFETY harness FOR TOWERS

AUSLEC

www.auslec.com.au

The Tower Workers Harness is designed for telecommunications and power industry personnel working on towers and poles. The harness includes the standard features of the Delta range, including no-tangle design, springloaded stand-up rear D-ring, protective label/ instruction pack and i-Safe intelligent safety system. In climbing, suspension, positioning and rescue activities, these workers require extra features, which have been designed into the harness, to safely carry out their work, including front fall-arrest belay loops, confined-space loops, side-angled D-rings, pole-work D-rings, padded work-positioning seat and lower-back pad. The harness is equipped with the i-Safe intelligent safety system to track inspections, control inventory and manage information.

Arc-rated and flame-retardant garments The Blaze jacket and Flame pants are arc-rated, flame-retardant and anti-static garments for use in electrical trades. The garments are designed to protect against arc-flashes that can exceed 20,000째C and cause regular workwear to combust and result in severe burns and possible death to personnel involved. These potentially lifesaving garments are compliant to ASTM F1959-06 18.5 cal/cm2 for arc-rating, EN533:1995/AS2755 for flame retardancy (including 3M 8935FR) and EN1149-1 for anti-static. The jacket and pants are waterproof, breathable and day/night compliant, making them suitable for electrical tradespeople who may have to work in wet conditions.

Fibreglass ladders

Remote area lighting system Emergency lighting in critical situations isn’t a concern now with the introduction of Pelican’s range of remote area lighting system (RALS) products. Instead of the hassle of organising a generator, fuel, extension lead and work light, just grab the RALS and carry or roll to the job. Open the case, and within minutes of arriving at the job site, you are shedding light on the situation. All of the components to assemble the light are stored in the tough Pelican case including LED light head, extension pole, charger and battery with up to 17 hours’ burn time.

Bailey Ladders is a full range of fibreglass ladders for the electrical market, including single-sided, double-sided, dual-purpose and extension ladders. A large range of fibreglass platform ladders is also available, promoting safety at any height for work along internal or external wall spaces. All ladders in the range are equipped with rubber feet for extra safety and a ‘punchlock’ tread for additional rigidity of the ladder. The fibreglass ladders are made in Australia and designed for Australian workplace conditions. Their durability and versatility means they are suitable for use on worksites. They are ‘electro-safe’ and meet AS/NZS 1892.3 standards.

AUSLEC

TeSys U integrated motor starters have a single breaking point for their three main poles for control and protection of single- or three-phase motors up to 15 kW. This ensures the poles don’t weld under short-circuit conditions, within its 50 kA breaking capacity. Following a fault, the unit can go back into service immediately after the fault is cleared. The starters have electronic short-circuit and thermal protection, low-consumption coils (240 VAC or 24 VDC) that reduce heat dissipation by up to 75% and two integrated auxiliary contacts (including N/C contact mechanically linked to main poles) that provide feedback for safety applications.

www.auslec.com.au

Integrated motor starters

Lightweight communications system Peltor Lite-Com III delivers high noise attenuation and shortrange communication with a built-in two-way radio. The active-sound function lets wearers hear ambient sounds (warning signals, machine sounds, conversation), while weak sounds are amplified, enabling them to be heard better than without hearing protection. Impulse noises at harmful levels are immediately attenuated. A shell-mounted control panel and LCD shows settings, while an electronic voice advises the settings being adjusted, so wearers don’t have to take off the headset to check. An auxiliary input connects phones or external com-radios for two-way communications, or CD players or radios to listen to news and music.

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A v a i l a b l e f r o m & r e c o m m e n d e d b y A u s l e c . U s e t h e locator at www.auslec.com.au to find your nearest branch.

Wire suspension systems Zip-Clip wire suspension systems are faster to install than traditional threaded rod. In electrical installations, they’re used for luminaires, busbars, cable trays, CCTV cameras, sound systems and secondary support. In HVAC and mechanical installations, they’re used for ducting, heat panels, fan-coil units and gas and water pipes. Specialist applications include seismic bracing, cold rooms, signage and shop fittings. The tool-free adjustment system comprises ZIP-LOCK, CON-LOCK, DECLOCK, SHOT-LOCK, UNI-LOCK, LUMA-LOCK and TRY-LOCK systems. They are supplied pre-packaged and assembled in 1–10 m lengths and with Safe Working Load (SWL) capacity of 10–120 kg.

AUSLEC

www.auslec.com.au

Infrared camera

The i60 infrared camera is designed for applications needing higher resolution and where documentation of findings is required. The camera weighs only 600 g and features 180 x 180 pixels on a 3.5-inch screen, ‘picture-in-picture’ operation, ±2% accuracy, better than 0.1°C thermal sensitivity, a laser locator and ‘insulation’ and ‘dewpoint’ alarms. The camera is IP54 rated, making it suitable for use in harsh industrial environments for predictive maintenance and planned inspection of electrical and mechanical systems to ensure they operate at maximum efficiency and safety with minimal energy consumption.

Radio for the job site The compact C12JSR-0 radio is equipped with a digital tuner to deliver high-quality audio and signal clarity. The portable radio is 26 cm wide and weighs 1.5 kg, making it suitable for use on job sites and in limited work spaces, trailers, work benches, maintenance vehicles and for outdoor activities. The rugged radio is constructed from shock-absorbing ABS polymer and steel to protect it against harsh weather and abusive job-site conditions. It features weatherproof aluminium speakers and a weather-sealed MP3 compartment that protects MP3 players and other audio devices connected to the docking portal.

Sockets spanners and wrenches Sidchrome sockets, spanners and wrenches are manufactured to international quality standards to ensure they are tough enough to withstand harsh working environments. All standard and deep-hand sockets and ring spanners feature TorquePlus fastening systems, providing greater contact with the flats of fasteners and greater torque. Conventional sockets damage fasteners by concentrating forces on the corners, whereas TorquePlus spreads the force over larger contact areas, reducing the rounding off and extending fastener life. The blow-moulded sockets sets feature spring-loaded hinges, enabling users to detach the two halves and store them in toolboxes or cabinets.

Professional tradesmen hand tools Klein tools are the premium quality range of tools from Wattmaster that are designed specifically for use by professional electricians and tradesmen. The tools have a 150-year reputation with many professional trades, including the electrical industry, for being innovative, durable and of the highest quality. They are depended upon to work accurately every time they are put to use.

AUSLEC

The safety light curtains and light grids provide finger, hand and body protection in guarding or access prevention applications for up to 12 m ranges. The products meet Type 2 requirements with SILcl 2 and PL d, and Type 4 with SILcl 3 and PL e. The light curtains protect area heights of 160â&#x20AC;&#x201C;1510 mm in 150 mm intervals, with 30, 40, 50 or 90 mm resolution. Light grids are offered with 2, 3 or 4 beams. A T-slot and enclosed angle brackets make the units easy to install vertically or horizontally and without dead-band on one side.

www.auslec.com.au

Safety light curtains and grids

NON-METALLIC LADDER TRAY The GRP ladder tray is constructed from glass-reinforced plastic and provides an alternative to the steel and stainless steel tray, offering a number of advantages. The ladder tray features a high strength-to-weight ratio, with only one-fourth the specific gravity of steel and one-third that of aluminium, and is easy to drill and cut on site using hand tools. The tray is chemical- and corrosion-resistant, non-conductive, non-magnetic and transparent to RF transmissions. Applications include chemical processing, wastewater and sewage treatment plants, petrochemical plants, offshore oil and gas platforms, galvanising and plating facilities, fertiliser processing, marine environments, food and beverage, tanneries and aluminium processing plants.

True supply chain Optimisation that Creates Enduring Value

·· Locking in technology pathways or keeping technology migration accessible; and ·· Understanding the suppliers’ capability to take a client’s business on a downward cost journey through engagement, passion and energy that drives new cost positions, which the end user had not envisaged or identified at the tender process. Unfortunately, too many companies accept the status quo and allow the continuation of: ·· Logistics and warehouse cost positions that are extremely sub-optimal; ·· Still operating inferior inventory replen ishment services that lack automation; ·· A failure to capture the value of service support and leadership in new develop ments and processes; ·· Dead inventory that increases ware house space and locks up cash for the long term; and ·· Excessively long vendor-profiles that are expensive and resource-heavy to operate. On large- or small-scale contracts, these benefits can have a lasting impact on the cost leadership of a company’s business. Often these savings are larger than the price savings achieved in a transactional procurement process. But it should be understood that, in a business that has paid insufficient attention

to its procurement processes, there is a significantly painful process that the business needs to pass through to get the cost base correctly positioned. Unfortunately, that process needs to be transactional and is often stressful for vendors who haven’t been challenged in this way. Marris adds: “The core competency in capturing the hidden value components is enshrined in the negotiation skills of a procurement team, the ability to ask open questions and the ability to get ‘outside itself’ and see the organisation’s behaviour and culture from an outsider’s perspective. “Case in point is what seems to constantly recur where specifications and supplier behaviour create what is best described as a ‘near monopoly’ supply situation, where companies are locked into one supply chain. It depends on the perspective of whether it’s good marketing by the supplier or weak procurement analysis and the fear of going offshore for competitive supply. Essentially, you end up having to show your client that their processes were so inflexible that it was detrimental to their business.” Working with Auslec and L&H Group Marris recently experienced Auslec’s supply chain philosophies while engaged by Donaldson Coal to establish an optimised procurement program for the company and found Auslec’s views on value similar to his. Operating a large coal mining processing facility in the Hunter Valley in NSW, Donaldson Coal found that its procurement process provided significant opportunities for improvement. Dynamic Consulting was engaged to review, restructure and establish a best practice procurement model. “I often refer to this as managing the chaos,” as Marris puts it. “This was a cold start for both myself and Donaldson Coal in working with Auslec,” explains Marris. “I recognised my client needed more than just a supplier of materials. They already had 750 suppliers on their books. What they needed, in effect, was a ‘partner’ who could proactively manage their materials needs and supply the materials in a timely and cost-effective manner that supported their business. In response to this we developed the ‘40 + 1’ concept that rationalises the vendor base,

www.auslec.com.au

Professionally executed and negotiated integrated supply chain strategies can significantly enhance a company's bottom line.

AUSLEC

Creating an efficient supply chain is a fundamental objective to unlocking hidden value, regardless of whether you operate large or small enterprises. Materials, capital equipment, services and tools typically form a large percentage of their cost base, so it’s in their best interest to manage this well. The primary key performance indicators (KPIs) for most procurement personnel would include constantly driving costs down, minimising raw materials on hand and ensuring regular and timely delivery of materials. But one KPI that often goes unqualified is how ‘value’ is created without necessarily reducing price. Many companies are so trapped in their paradigm, they claim that this cannot be done! There has been a lot of discussion in recent times about the power of supply chain optimisation and that it tends to be a marker that characterises highperforming organisations. While it’s true that many organisations have captured price positions from this process, they often leave significant value on the table in many aspects of their business, because they have missed the value that can be extracted from process improvement and cultural change. The General Manager of Dynamic Consulting, Alistair Marris, says that asking the right questions of the existing supplier base can be illuminating: “One recent assignment of mine revealed the client was its most expensive customer they supplied. Decoupling services from price changed everyone’s perception as to how the organisation spent its money. “Going beyond price-focused procurement is an important element to the success of any business. You have to be prepared to get outside the paradigm and explore how other components of the offering can impact your business.” Typical areas for value creation can be found in: ·· Payment terms and cashflow planning; ·· Vendor rationalisation to ensure a focus on suppliers who are regularly interfacing and adding value to a business; ·· Capturing technical support and lead ership as part of the procurement arrangement; ·· Spare parts and responsiveness of vendor support services;

www.auslec.com.au AUSLEC 30

simplifies processes, transforms processes using technology, concentrates energy where it creates value for the business and only interface with key suppliers. “Processing transactions from end to end can cost an organisation $65–120 per transaction. A recent project I’m aware of at another large mining company identified order initiation to payment was costing $155 per transaction. Needless to say, the rationalisation benefits were significant. “Not only were the procurement processes at Donaldson Coal less than optimal, the company had plans to double its coal output in a few years, so that amplified the urgency to transform their systems. “We needed to bring third-party expertise into the business to drive a new culture and processes for operating the stores function that is critical to an underground mining operation. That’s where I met Auslec’s Claude Picinali, who runs a national functional team that offers this capability. Collectively we took their model and extended it to create an ‘Integrated Supply Solution’ which we ‘affectionately’ refer to as IS2.” In setting the metrics to evaluate the tenderers, Dynamic Consulting developed a supplier evaluation process that included a ‘due diligence’ questionnaire. The objective of the questionnaire was to identify, interview and/or visit a major client of each tenderer where an audit process could be carried out on the performance of their procurement model and evaluate the success of their integrated stores model. Specifically, Dynamic Consulting sought to validate the intentions it had for the restructuring of the store processes at Donaldson Coal. “We looked at many of the logistical issues, like ‘receipting-in’ and ‘issuingout’ items, managing min/max inventory levels and integrating their catalogue into an enterprise-wide IT system for full user flexibility,” explains Marris. “But we also asked the tenderers to each summarise the three most significant activities their clients undertook during implementation that made their stores project a success. We asked what the most painful learnings were from transitioning to a managed-stores function, how they managed the transition plan, what made it successful and how significant

“

One KPI that often goes unqualified is how ‘value’ is created without necessarily reducing price. Many companies are so trapped in their paradigm, they claim that this cannot be done!

”

the respective company’s contributions were to the overall success. “Our evaluation not only found Auslec to be a good fit for the mechanics of the supply contract, but they also had the right ‘can do’ attitude. We were impressed with their proactive approach to providing tangible benefits to their clients. They demonstrated a good understanding of what it actually is that industrial companies are looking for to optimise their procurement processes and they were very open with suggestions on what Donaldson Coal could do to improve their processes. Clearly there were sensitivities to deal with, and developing integrity and trust with senior L&H/Auslec management was critical, but we backed it up with a two-way non-disclosure agreement just to give that greater level of comfort. “After appointing Auslec, we found their behaviours didn’t change — they were still very proactive about finding and bringing tangible benefits to the client. The team at L&H/Auslec are very dedicated and experienced and are highly skilled at managing the change process. It was a pleasant experience for both myself and the client to find that the can do culture went deep inside Auslec’s operations, well beyond the front end that secured the business. “The Auslec integrated supply chain system, along with all of their personnel involved in servicing Donaldson Coal, is structured to make business possible, not difficult.” Summary In summary, professionally executed and negotiated integrated supply chain strategies should: ·· Deliver a best cost position; ·· Capture valuable supply chain enhance ments; ·· Build enduring supplier relationships based on integrity and transparency; ·· Significantly enhance the bottom line performance of a business; and ·· Facilitate the focus on core competen cies knowing there is a competent partner driving the day-to-day activities of your supply chain. The challenge is how these value-component strategies can be delivered at no incremental cost to an organisation.

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Available from & recommended by Auslec. Use the locator at www.auslec.com.au to find your nearest branch.

Expanded range of plugs and sockets

The pmd 3d industrial sensor can detect scenes and objects in three dimensions. The sensor has 64 x 48 pixels, each pixel evaluating its distance to objects, resulting in 3072 distance values. The image and respective distance values correspond to a 3D image and the geometrical characteristics of the object result from these values. The integrated time-of-flight measurement, based on pmd technology integrated on one chip, enables the evaluation of geometrical characteristics such as volume, distance, level or surface area. Two switching outputs indicate the results, with one able to be configured as 4-20 mA, 0-10 V analog output.

Robust laptop case The 1495 Laptop Protection case is available in six styles for up to 17-inch laptops. The watertight, crush-proof and dust-proof case has internal dimensions of 47.9 x 33.3 x 9.7 cm and features a 3-dial combination lock, fold-down over-moulded handle, double-throw latches, automatic pressureequalisation valve, stainless steel padlock protectors, convoluted lid foam and padded shoulder strap. Pelican cases have been thrown from helicopters and submerged in capsized vessels, with no damage to the important equipment they carry.

The Director series of reliable and economical emergency lighting is available in a number of styles and configurations to suit installation in a wide variety of environments and applications. The fitting is supplied with a 10 W fluorescent lamp and is available as a maintained, sustained or non-maintained system and in either ceiling- or wall-mount installation options. With a viewing distance of 24 m and conveniently packed with a selection of directional ‘picto’ decals, the unit is designed for ease of installation and is compliant with AS/NZS 2293.

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Compact industrial 3D sensor

Emergency lighting

AUSLEC

The Industrial Strength Options (ISO) range of IP66rated plugs and sockets has been expanded to suit more applications and environments. The range is suitable for industrial, commercial and domestic single- and three-phase applications of 10–50 A and in 4- and 5-pin configurations. The plugs feature extruded ribbed grips, making it easier to remove them from sockets and to ensure a good seal when tightening. The range consists of 1-, 2-, 3- and 4-gang boxes; 1- and 2-gang lids to suit the back-boxes; sockets (with or without 1-gang back-box) and switches (with or without 1-gang back-box).

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A v a i l a b l e f r o m & r e c o m m e n d e d b y A u s l e c . U s e t h e locator at www.auslec.com.au to find your nearest branch.

Variable speed drives The CFW11 variable speed drive features ‘Optimal Flux’ technology to guarantee full-torque motor performance down to 5 Hz. It has an IP54-rated powder-coated steel enclosure with demountable external fan and continuous 50°C ambient temperature rating with no de-rating required. The drive can be mounted directly on or near a machine installation without the expense of mounting into a central electrical panel, saving money and valuable cabinet space, to power ratings of 45 kW. Other features include plug-and-play functionality that allow hardware expansion modules to be quickly configured, even with the drive in service; in-built PLC functionality; flash memory upgrade; and plain-text HMI module.

AUSLEC

www.auslec.com.au

‘Green’ troffer

The Pierlite Green T5 is an energy-efficient T5 fluorescent troffer module that is designed for interior commercial lighting installations and claimed to offer 25% more energy savings when compared to a standard T8 fluorescent troffer module. The T5 troffer accommodates 2 x 28 W T5 fluorescent lamps and is supplied with a pre-wired flex and plug for easy installation, together with the choice of a semispecular louvre or an economical Y12 diffuser panel.

Non-flammable cleaners and lubricants The precision cleaners NF Contact Cleaner, XTR Precision Cleaner and Contact 2000 have been specially developed by CRC Industries for use in the precision electrical and electronic industries. The cleaners are all non-flammable cleaning agents, with no flash- or fire-points and evaporate rapidly, leaving no residue. Lectra Clean is a heavy-duty cleaner/degreaser which is also non-flammable, as well as having no flash- or fire-point; and 2.26 is a non-flammable multi-use lubricant that displaces moisture, prevents corrosion, lubricates and penetrates. These non-flammable precision cleaners and lubricants are designed to take the flammability risk out of everyday maintenance activities.

Quick connect electrical fittings Connex quick disconnect/reconnect electrical fittings are used with any spigot-mounted lighting fixture, enabling removal in under 60 s. A built-in connecting device allows the fitting to be removed under load and without having to isolate the circuit, so repairs can be undertaken in a workshop with minimal time in the field, while eliminating the risk of electric shock. A shielded connector housed inside an IP65-rated body de-energises the fitting in the first 2 mm as the spigot-mount section is removed with the fitting. Once removed, the shielded connector prevents access to the energised terminals.

Sealing conduit and fittings Anaconda Sealtite conduits and flexible metal-conduit fittings suit a diverse field of applications, ranging from light industrial use to nuclear applications. AEF conduits, available in 10–128 mm diameter sizes, are heat-, oil-, chemicaland weather-resistant for harsh environments. HCX conduits in 16–63 mm diameters provide liquid-tight raceways for wiring where extreme temperatures apply. AOR conduits, in 16–128 mm diameters, are heat-, oil-, chemical- and weatherresistant for oil-rich environments. EMC conduits, in 12–120 mm diameters, provide EMC shielding and protection from dust and liquid. The 68 Series fittings are also available in brass for corrosion resistance and IP66/68 ratings.

Modular switchrooms Containerised switch-rooms are constructed from the modular Cubic panel-board system, offering full Type Test compliance and cost- and time-saving solutions for temporary power. The completed boards are installed into new seaworthy, ISO-standard containers designed for Australia’s harsh climates. Standard-size containers allow normal freight-network utilisation. The switch-room incorporates emergency lighting, vermin protection and climate control using two split-system air conditioners. Managing the internal temperature avoids having to over-size switchgear and busbars to meet de-rating factors. The Cubic system facilitates numerous circuit-breaker, motor-starter, drive and marshalling-rack configurations. If the switchboard requires post-installation reconfiguring due to demand changes, board-load capacity and available module space are the only limiting factors.

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The Quickfit Holesaw range of arbors is designed for heavy-duty cutting and quick location and fitment with the complete Sutton Tools range of holesaw products. The arbor will fit into a standard 13 mm drill chuck and fully engages into the holesaw with one sliding action of the collar, while the drive pins self-locate into the drive holes of the holesaw. Features of the arbors include non-slip rubber finger grip for ease of use and through-hardened chrome alloy steel construction. The QF1 arbor suits 32–152 mm holesaws; the QF2 Tandem Arbor enables existing holes (up to 140 mm) to be made larger; the QF3 Set includes QF1, QF4, 3-1/4 pilot and 4-1/8 pilot drill; and with the use of the QF4 Adaptor combined with the QF1 Arbor, one arbor will fit all holesaw sizes.

AUSLEC

Holesaw arbors

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Available from & recommended by Auslec. Use the locator at www.auslec.com.au to find your nearest branch.

Drill bits Unibit drill bits are made from heat-treated, industrial-grade molybdenum steel and are available in high-speed steel and titanium finishes. The high-speed steel bits are for general-purpose use, while the titanium bits are titanium-nitrate coated to reduce friction and allow 25–30% greater machine speeds. Both bits are suitable for use on plastics, PVC, laminates, Plexiglas, wood, aluminium, brass, copper, cast iron, and stainless steel up to 10 mm thick. The bits feature ‘Speed-point’ tips that prevent them from skidding and eliminate the use of centre punches and a 3 x flatted shank that prevents them slipping in drill chucks.

AUSLEC

www.auslec.com.au

Cable gland for Hazardous areas

Full-metal inductive sensors for food industry The full-metal T series inductive sensors are proven for use in the food industry by temperature-shock and steam-boiler tests. The stainless steel threaded body and sensing face provides longer sensor service life and reduced machine downtimes. The sensors’ high ingress resistance has IP67, IP68 and IP69K protection ratings and 0–100°C temperature range.The M12, M18 and M30 sensors provide sensing ranges of 3, 5 and 10 mm and are connected via M12 connector. The asymmetrically acting vibration protection holds the nut tight in its position, guaranteeing an optimum and permanent seal and IP67, IP68 and IP69K ratings.

Hard hat The Tuffguard Hard Hat, distributed by Beaver Brands, was the vision of Wayne Kopp, who recognised the importance of designing, developing and manufacturing completely in Australia. The hard hats are manufactured in Sydney with all of the raw materials and packaging sourced through local Australian companies, making it an ‘all Aussie’ product. L&H Group has access to the full range of Surguard Tuffguard hard hats. Except the special pink version of the hard hat, available from the McGrath Foundation, in support of breast cancer research.

The new CCG Varitex™ cable gland provides a cable termination with a new innovative design that allows a complete and easy to terminate seal onto copper taped cables, now widely used within VSD (Variable Speed Drive) industrial market sector. VSD applications in the Industrial, Mining and Oil and Gas sectors will welcome the CCG Varitex™ cable gland for its simplicity of installation and built in safety features. The CCG Varitex™ cable gland is the only cable gland available on the Australian market certified for hazardous areas involving VSD applications, fully compliant with AS/NZS 60079-7:2006 and AS/NZS 61241-1:2005 for Exe and Dust Hazardous area installations.