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INTELLIGENT SENSORS MAKE LOGISTICS PROCESSES EFFICIENT AND SUSTAINABLE SICK Full Page Advertisement Logistics.indd 1
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*AITA Statistics Ytd December 2013. #Source: Logistik Magazine 2013. Pictures are for illustration purposes only. Actual colour of products may differ from picture displayed.
Make sure your material handling provider ticks all the boxes. Whether you require a single forklift or a fleet, we want to show you why Toyota Material Handling sells more forklifts than any other company. We’ve got Australia’s biggest range to provide you with the best possible material handling solutions, and
the customer service and parts support you’d expect from the world leader .# So if you’re looking for a forklift provider who really ticks all the boxes, talk to your local Toyota Material Handling branch today.
1800 425 438 www.toyotamaterialhandling.com.au
S O L U T I O N S
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F O R
E V E R Y
P A L L E T®
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This issue February 2015
Data Management Dealing with Big Data
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inside VOL45 ISS1 FEBRUARY 2015 Forklifts Warehousing Data Management Supply Chain Technology
06 Warehousing Warehouse failures Cold storage goes hightech in Brisbane
INTELLIGENT SENSORS MAKE LOGISTICS PROCESSES EFFICIENT AND SUSTAINABLE SICK Full Page Advertisement Logistics.indd 1
04 Bulletin Board Australian rail milestone National Forklift Championships Bulk handing award
08 Forklifts Toyota’s 8-series tailor made Nissan joins Lencrow range 11 Supply Chain The 2014 Scorecard
19 Technology Tough truth about mobile devices
14 Transport Freight-forwarding and customer service
19/01/2015 3:03:33 PM
SICK is one of the world’s leading manufacturers of sensors, safety systems and automatic identification products for Factory Automation, Logistic Automation and Process Automation applications. In its Logistics Automation segment, SICK offers solutions for the automatic identification of bar codes and 2D codes, and for the labelling of objects in logistical circulation systems through the use of RFID. The detection of height, shape and volume with, if necessary, calibrationenabled laser measurement systems, is also part of this application segment. For more information please visit www.sick. com.au or call 1300 405 807. ASSOCIATE PUBLISHER: Martin Sinclair e martin.sinclair@cirrusmedia.com.au EDITORIAL CO-ORDINATOR: Ben Hagemann t 02 8484 0884 e ben.hagemann@cirrusmedia.com.au GRAPHIC DESIGNER: Dave Ashley t 02 8484 0710 e david.ashley@cirrusmedia.com.au KEY ACCOUNT MANAGER: Tim Richards t 02 8484 0829 e tim.richards@cirrusmedia.com.au QLD ADVERTISING MANAGER: Sharon Amos t 07 3261 8857 m 0417 072 625 f 07 3261 8347 e sharon.amos@cirrusmedia.com.au PO Box 3136, Bracken Ridge, Qld 4017 PRODUCTION CO-ORDINATOR: Mary Copland t 02 8484 0737 e mary.copland@cirrusmedia.com.au All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher. ISSN 1832-5513 Copyright Cirrus Media. Published by Cirrus Media. (ABN 80 132 719 861) Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Australia Locked Bag 4700 t 02 8484 0888 f 02 8484 0633. Printed five times a year, Logistics & Materials Handling is inserted in the February, April, July, September and November 2014 issues of Manufacturers’ Monthly, FEN, Australian Mining, Food, and PACE magazines with a distribution of 14,901.
logisticsmagazine.com.au
17 Data Management Recovering lost revenue with SICK
supplychain The future of business lies in the visible value chain
12
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February 2015 Logistics&MaterialsHandling | 3
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bulletinboard LOGISTICS AND MATERIALS HANDLING NEWS FROM AUSTRALIA AND AROUND THE WORLD
Australian rail moves over 1 billion tonnes of freight A national report on the current
Melbourne approaching eight mil-
large majority of freight cur-
state of rail in Australia has showed
lion people each,” Nye said.
rently moved by road between
that movement of goods and
“If Australia is expected to meet
people by rail in Australia continues
this challenge, rail will have an
to grow with the industry’s perfor-
increasingly important role to play
mance living up to the increased
in this space.”
demand from both the freight and passenger markets.
Melbourne and Brisbane and an estimated 30 per cent by rail. “Important infrastructure projects like the Inland Rail, due to
Speaking on the specifics of
commence construction next year,
the report, Nye highlighted the
will address the existing imbalance
immense surge in the movement
by opening up the Melbourne to
Bryan Nye OAM said that the
of rail freight, with an increase of 57
Brisbane network, taking seven
report showed that in 2013 Austral-
per cent over the past five years.
hours off transit between the
Australian Rail Association CEO
ian railways carried over 1 billion
“It is appropriate that the launch
two cities; removing thousands
tonnes of freight and moved more
of this report is in Western Aus-
than 850 million passengers.
tralia, as the growth in freight ton-
count for more than 80 per cent
task is also growing, with tonnages
easing the Sydney bottleneck; and
nage has been driven substantially
of the rail freight tonne-kilometres,
having increased by 65 per cent
boosting regional development
predicted to almost triple by 2050
by the resources boom and the
with the biggest task being the
since 2009-10, to 27 million tonnes.
along the entire 1,700km route.
and by that same year the Austral-
export task of moving iron ore and
movement of iron ore in Western
ian population will have doubled,
coal to ports,” Nye said.
Australia’s Pilbara region.
“The national freight task is
with populations of Sydney and
“These two commodities ac-
of trucks from major highways,
“Australia’s intermodal freight
“Along Australia’s east coast
“Rail is a strong, exciting and
however, more container freight
diverse industry with a prosperous
can and must go by rail with the
future in Australia,” Nye concluded.
Bonfiglioli wins Bulk Handling Award for gear units supplied to Rio Tinto HIGH quality gear units supplied to Rio Tinto through Bellingham Engineering have won Bonfiglioli Transmission Australia the prestigious Bulk Handling Award for 2014 in the category of Excellence in the Application of Gears, Motors or Drives. The rugged and durable Bonfiglioli A 05 2 and A 90 4 Helical Bevel Gear Units provide 1.1 and 7.5kW of power respectively to traverse hoists, which allows Rio Tinto to lift up to four pieces of rail at once, greatly increasing their operational efficiency for their Rail Capacity Enhancement Project in Karratha, Western Australia. “This was an interesting project for us, as the gears had to be designed to withstand extreme conditions such as high heat and cyclones,” Bonfiglioli Australia managing director Malcolm Lewis said.
National Forklift Championships
“It’s a pleasure to receive this award, which would not have been possible without the hard work and dedication of the team here at Bonfiglioli.” Bonfiglioli, which is this year celebrating 25 years in Australia,
THE date has been set for the final of the
prides itself on engineering services including those provided by its
National Forklift Championships for 2015.
Drive Service Centre (DSC).
It will be held on Friday 21st August 2015, so make a note in your diary. After the success of the championships held last year at the Construction Training Centre in Brisbane, the current Forklift Champions will be looking to defend their title. A number of sponsors have already indicated support for this year’s big event. For more information, contact AusWA’s secretary on 07 3375 4114 or via email admin@auswa.asn.au.
4 | Logistics&MaterialsHandling February 2015
The DSC – operating throughout Australasia – combines local engineering skills with the global resources required to tailor larger, sophisticated and efficient drives to the needs of individual customers. The A Series units selected for the Karratha project have a wide
Matt Ryan, Bonfiglioli National Sales Manager, accepts the award from Bulk Materials Handling’s Peter Delbridge. ing the bevel gear pair on the second reduction stage of the gear motors. In addition to this, the monobloc universal housing offers
ratio range (with up to four reduction stages), allowing one gear unit
optimum sizing and perfect gear alignment, which adds to the total
to be used where previously two were needed, saving customers
noise reductions of the units.
space and cost. Operating efficiencies are enhanced by high perfor-
The A series units are functionally designed with a large ratio
mance helical bevel gear pairs, which also give the units significant
range of up to 1700 to 1 in a single gearbox with four reduction
energy savings.
stages. Depending which A Series unit is used, power outputs range
They are also innovatively designed for lower noise levels by locat-
from 0.09–55kW, with torques from 150-14,000.
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MAKING THE RIGHT CHOICE TOGETHER.
Dematic is one of the global leaders providing a comprehensive range of intelligent intralogistics and materials handling solutions, demands only the best for its customers. The high-performance pick station RapidPick is one example. Right from the start, this system was developed in cooperation with SICK. In this way, Dematic not only utilizes reliable and high-performance sensor solution, it also obtains the necessary consultation and expertise needed to make the RapidPick system what it is today: a compact and optimized ergonomic pick station that operates according to the “goods to person” principle. It brings maximized throughput in a state-of-the-art work environment and enhanced versatility in operation. For Dematic, SICK was the right partner to choose, ensuring that they will satisfy all their customers‘ requirements in the future. We think that‘s intelligent. For more information please visit www.sick.com.au or call 1300 405 807.
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warehousing
Warehouse Failures – A guide to careful planning! A productive warehouse begins with carefully planning your space and understanding the workflow of your goods.
W
hen starting a warehouse you must know how the equipment you use will work in your space: Understanding this will determine your productivity. Lencrow Materials Handling has been involved in supplying the latest materials handling equipment for over 38 years, and in this time they have seen the common mistakes that new warehouses fall in to from the very beginning. The first thing that must be considered during planning is how much stock needs to be stored in the area and the turnover rate of the products. You will need to account for the size and weight of your product and the rate of distribution. This will establish the size of your racking, the placement of your products and govern the workflow of daily operations. Put simply, placing your most sourced product on the top racking or placing a pallet lot in a pedestrian pick area is going to slow your operation down. Purchase higher racking to begin with even if you don’t think you will use it straight away.
6 | Logistics&MaterialsHandling February 2015
The relationship between space and equipment is key to ensuring a good workflow.
Remember that airspace is free and the cost to your business is the floor space so if you can stack higher it is cheaper to install the extra height at the start. Plan for the future and if your volume increases or your products change you are already set up to manage your new distribution requirements. Aisle width between your racking is paramount as this will dictate the type of equipment
you can use to pick your stock. The factors that you need to consider are where the product will be unloaded, the type of stock you sell, its weight and how the stock is stacked. Lencrow have been contacted by newly set up warehouses after the racking has been installed and their consultants find that the equipment required for the task cannot negotiate the aisle space. Usually aisles are made too
narrow and equipment can’t turn in the space allowed or the racking is spaced incorrectly and the unit can’t pick the stock. Lencrow understand the relationship between space and equipment and are happy to assist you in the planning process of your warehouse layout. In this consultation they will assess what will suit your operational needs and help you effectively manage your space. Lencrow offer a range of forklifts and warehouse equipment that will suit all budgets including new and used units. They also offer a range of flexible materials handling equipment hire options because they understand that your needs may change. Inclusive in the Lencrow range are warehouse sweepers and scrubbers to maintain a clean, tidy and dust-free workplace. Using the correct industrial cleaning product to maintain your warehouse ensures that your products are delivered to your customers spotless and we all know that first impressions count. You will also have peace of mind in delivering a high standard of workplace safety.
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DB Schenker’s new state-of-the-art, 2,500 square metre cold storage warehouse at Eagle Farm has integrated cold chain facilities including anteroom, ambient temperature room, chiller and freezer.
Cold storage goes Hi-Tech in Brisbane One of the world’s leading logistics service providers, DB Schenker is gearing up to expand its share of Queensland’s $88 billion import and export markets with the opening last year of a new freight forwarding facility to handle dry and perishable freight.
T
he new Eagle Farm facility at Trade Coast Central, only nine kilometres from Brisbane’s International Airport, will enable the company to complement its existing dry freight handling capabilities with the inclusion of 1,100 square metres (sqm) of cool rooms. The addition of the cool rooms will enable the company to handle the import and export of healthcare and perishables products including meat, seafood, dairy products, fruit and vegetables, confectionary and pharmaceutical and medical supplies. Schenker Australia CEO Ron Koehler said the facility represents a $10 million investment over the next ten years and comprises a 2,500 sqm warehouse and 800 sqm office with integrated cold chain facilities including anteroom, ambient temperature room, chiller and freezer. “In the past year there was around $4.5 billion of beef, other meat, wheat and vegetables exported out of Queensland alone,” Koehler said. “We are now in a position to be able to better serve this sector, as well as other commodities that are imported and exported out of South East Queensland by both air and ocean. “At any given time this facility is able to hold 850 Australian Standard Pallets of stock in our ambient temperature room and 120 Australian Standard Pallets of stock in our chiller/freezer logisticsmagazine.com.au
rooms, all of which are fitted with state of the art temperature monitoring. “The facility has gained AQIS export accreditation for meat, seafood, dairy, eggs, plants and fruit and vegetables and is also well equipped for healthcare products. “Our state of the art Eagle Farm facility is also well positioned to cater for normal retrieval and handling activities for import and export air and ocean freight.“ Koehler said the new facility was central to the growth strategy of the company, which last year concluded in celebrating 50 years in Australia, and enabled it to meet increasing cold logistics demands. The facility is the second facility that the German headquartered company opened in Queensland last year. In August 2014 it opened a warehouse facility at the Redbank Motorway Estate in Ipswich. The Eagle Farm facility is strategically located, with it being adjacent to the airport and within close proximity to the cargo terminals as well as the main north-south arterial connecting Northern Rivers, Gold Coast, Brisbane, Sunshine Coast and Burnet. Koehler said the facility incorporated the most recent energy saving technologies and had been purpose built for the next ten years allowing DB Schenker to change its operations
in line with changing market requirements. “One of the most important aspects is the 54 kilowatt roof mounted solar energy system that provides up to 30 per cent of the building’s electricity requirements,” he said. “This solar energy system can be doubled as required as business in Queensland grows. “The new Eagle Farm Trade Coast facility incorporates the most up-to-date thinking from around the vast DB Schenker world.” Key features of the new insulated coldstorage warehouse include preparation for healthcare and perishable products, uprated 54kw solar energy system capable of expansion to 100kw, integrated building management system controlling all functions including on site generator for consistent electricity supply to cool rooms, and the latest in environmental engineering incorporated into building design including upgraded air conditioning, double glazed windows, LED lighting throughout, and recycled water used where applicable. DB Schenker Australia has seven freight forwarding operations in Australia and New Zealand, and 20 Logistics sites across all states including Darwin and Canberra combined capacity of more than 216,000 square metres. The company employs 1,100 people across Australia and handles 130,000 tonnes of combined export/import each year. February 2015 Logistics&MaterialsHandling | 7
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forklifts
Toyota’s 8-Series forklifts tailor-made Many sites and workshops require customised vehicles to suit the needs of the working environment, and Toyota Material Handling Australia (TMHA) is well equipped to meet such demands, providing specialised forklifts for use in unusual places.
O
n the eastern seaboard, TMHA has recently completed delivery of a specially tailored a 2.5-tonne forklift to meet the specific site needs at a New South Wales lime plant. Sibelco Australia commissioned a new dieselpowered Toyota 72-8FD25 forklift in October at its Charbon Lime plant, near Kandos. TMHA Orange branch manager Richard Bopping said the Sibelco unit at Charbon is the most site-specific forklift he has delivered in his 13 years with Toyota. “It’s a great example of the level of customisation available to ensure our forklifts are perfectly matched to the customer’s needs. The diverse range of tasks this forklift undertakes is pretty impressive too,” he said. Sibelco site maintenance supervisor Andrew Schneider said the new forklift operates on uneven ground in a limestone-processing plant. “It is the right tool for the right job,” he said. “We asked for a limited-slip differential and wide, puncture-proof tyres, because the plant is located on the side of a hill and the ground conditions vary. “Most of the site has a concrete surface, but there is a lot of uneven gravel as well.” The extensive, site-specific fit out for the machine also includes a custom hydraulic fork positioner, fork vibration damper, analogue weight gauge, dual-element cyclonic air filter, a pre cleaner, radiator screen, up-swept exhaust system, high-capacity alternator, high-capacity battery and fire extinguisher. Schneider said the new forklift has joined two older Toyota forklifts on site and performs a wide variety of roles. “The new Toyota has to be an all-rounder, because it serves as both a general-duties forklift and with the maintenance department,” he said. “Duties range from loading and unloading trucks to lifting machinery parts with our jib attachment. “It loads the bulka-bags of lime powder we sell to mines in the Hunter Valley, unloads steel from trucks, carries the drums of oil we use to light the kilns and assists when we disassemble the fixed machinery for maintenance.” Summarising the purchase decision, Schneider said the Toyota forklift was the pick of the bunch 8 | Logistics&MaterialsHandling February 2015
Andrew Schneider (left) with Sibelco’s highly specified new Toyota 8-FD25 forklift.
ABC Transport CEO Jamie Eccleston and proprietor Andrew Cogan with one of the company’s new Toyota 8-Series forklifts.
and that the specifications met all of Sibelco’s performance, reliability and safety requirements.
The favourite forks for ABC Over in Australia’s north, ABC Transport recently replaced its seven Toyota 62-8FD25 2.5-tonne, engine-powered counterbalance forklifts with new models at its Darwin depot, one of the company’s three depot locations. The ABC fleet of 8-Series forklifts are used to unload and load freight to ABC Transport’s prime movers, which deliver and collect freight at the Darwin depot on a daily basis. ABC Transport CEO Jamie Eccleston said the Toyota forklifts, which had been in use since the Darwin depot was established in 2006,
performed above expectation in an environment where the freight type constantly varied. “Toyota is the number one forklift for us,” Eccleston said. “We have a lot of freight coming into Darwin every day and it’s always different because we service a variety of customers. “The feedback I’ve received from my operators is that the Toyota forklifts are easy to operate and they’re also quick and stable, which means the job gets done efficiently. “We also see a direct benefit to the business with Toyotas because they run trouble-free and we have the support of really helpful after-sales service. “We don’t have a lot of time to spare and when we need service they’re in and out quickly, job done.” Toyota Material Handling Darwin branch manager Paul Allen said Toyota’s 8-Series forklifts provided the ability to enhance efficiency in busy depots where drivers contended with different types of freight. “ABC Transport has a great history with Toyota forklifts going back to when the Darwin depot was established,” Allen said. “The 8-Series does everything they need, with a tight turning radius and Automatic Fork Levelling Control, which is ideal when handling a wide variety of items. “The safety features also provide peace of mind. Toyota SAS detects instability and corrects it to help prevent tip-overs. “This works hand-in-hand with the Active Control Rear Stabiliser, which locks the rear axle if SAS detects any problems. “Operator Presence Sensing also helps to prevent dangerous movement by preventing the forklift from moving unless the operator is properly seated,” Allen added. ABC Transport is a family-owned business and was established in 1998 with eight staff to provide freight services to local and remote Aboriginal communities in the Northern Territory. It has achieved significant expansion over the past 15 years, with the establishment of the line haul between Darwin and Adelaide in 2005 and the growth of its workforce to 90, as well as a large fleet of vehicles. logisticsmagazine.com.au
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forklifts
Nissan joins the Lencrow Range
L
encrow Materials Handling The compact series are available are the new dealers for the in 1600kg to 2500kg capacities Nissan Unicarriers range offering tighter turning circles and in Sydney, Melbourne, operate comparably to larger units. Brisbane, Adelaide and Newcastle. Nissan Unicarriers have The return of this materials expanded their electric warehouse handling brand to their product line equipment range and this includes makes it the most comprehensive three types of reach trucks ranging Lencrow have brought in a new range of Nissan forklifts, including and complete in Australia. in 1400kg to 2000kg capacities with unicarriers and the Smart Series. The Nissan Unicarriers range lift heights up to 1.21m. covers most the forklift and materials They still offer the reliable complete range of products. backed with a three-year factory handling equipment requirements for three-wheel electric units which Some of the electric range is warranty which includes parts and Australian businesses. boast full AC operation as well as manufactured in Europe, internal labour. The internal combustion range the four-wheel electric range with combustion range in Japan and The fast moving model at the still offers value for money and capacities up to 3000kg. some specialist products in the moment in Australia is the Smart reliability for units ranging from Unicarriers has united the USA. Series forklift which has carbureted 1800kg to 7000kg in capacity, and competencies of three original Specialty units in the range over fuel injection. since Unicarriers became involved brands and utilised the include order pickers, turret trucks The popularity of this unit is this range now includes units up to manufacturing expertise of global and a four directional reach truck. attributed to its price and five year L OG_ L E N_ 0 0 0 1 2 0 manufacturers 1 4 - 1 1 - 2 8toTdeliver 1 1 : 2 : 0equipment 0 25000kg. a 5 : 0 1 + 1 1 All in this range is factory warranty.
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February 2015 Logistics&MaterialsHandling | 9
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The easiest way to find the right products and suppliers
MANUFACTURING | MINING | INDUSTRIAL
8
ferret.com.au
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1300 156 836
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supplychain
The 2014 Scorecard Unleashed Software CEO Gareth Berry looks back over three of the biggest predictions made for the manufacturing and logistics industry in 2014, to see how the prognosticators fared. Twelve months on, we may not have seen the end of the forecast-driven supply chain but it’s clear a shift has begun. Demand-driven strategies are gaining adherents and continue to intrigue the market. With additional developments such as big data (see below) on the horizon, it’s reasonable to assume that the change from pull to push will continue into 2015.
ill-defined. My guess is that it will take a few more years before big data catches on in a big way. In the meantime, use cases will emerge almost by stealth as businesses applications begin to engage a wider and wider range of organisational data. Because of their comparative agility and reach, cloud applications will lead the way in this trend.
Big data Prediction #1: The rise of the demand-driven
The mass of structured and unstructured data
supply chain
Thanks to the rising popularity of agile methodologies, there’s been a lot of discussion about changing the focus of the supply chain from pull (forecast driven) to push (demanddriven). However, creating a market-responsive system relies on the ability to readily access and share data along the supply chain. In particular, it requires an accurate knowledge of inventory, exceptional visibility into demand and consumption, and the ability to quickly act on changes. Five years ago, the technologies to support such a view were not within reach of many organisations, especially small to medium enterprises, due to cost and resource considerations. By the eve of 2014, this had changed: The cloud had brought apps for every logistics need within the reach of all, offering businesses the opportunity to gather more data about their business, market and customers than ever before. In addition, companies adopting agile approaches to the supply chain were reporting solid market success. Hence, the prediction that the demanddriven supply chain would finally gain momentum. logisticsmagazine.com.au
Prediction #2: Big data and analytics
For the last year at least, everyone seems to have been spruiking the unrealised value of big data, the mass of structured and unstructured data that sits within every organisation. The idea was that by mining this information, by correlating diverse, previously siloed data, organisations would gain insights that would enable them to improve production, better forecast demand, engage in analytics and more. At the end of 2013, many vendors were said to be working hard to develop ways of easily and quickly harnessing the data, and analysts were predicting that big data would be one of the biggest trends of the year ahead. So has it lived up to expectations? The topic has definitely made waves, primarily among large enterprises and government departments, but if we were to be honest, it remains a tool for the future. The potential uses are so broad that while everyone agrees there will be benefit from using big data, exactly how data should be used, what data should be used, and the benefits will remain
Prediction #3: The need to upgrade systems will see businesses become more open to new approaches to technology
The ERP and supply chain systems that are being deployed today are vastly different to those of five or ten years ago. The cloud, mobile apps, mobile devices and social media are redefining the way we do business. We have tremendous flexibility to select from on premise, cloud and hybrid systems, integrated suites of applications and best-of-breed solutions. Where old-style solutions embraced a certain predictability, in the post-GFC world, technologies that enhance responsiveness and agility are key. The prediction was accurate, but openness to new experiences, approaches and methodologies will become an essential trait in the foreseeable future, when everyone in a market is chasing competitive advantage. February 2015 Logistics&MaterialsHandling | 11
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supplychain
The future of business lies in the visible value chain Mike Pitt examines the very real potential for IoT to change the landscape of supply chain logistics through enhanced visibility.
T
oday, rapidly changing technology trends have rendered the world flat and made the business landscape, particularly in Australia, more complex and competitive than ever before. With the endless array of customer choices, fierce competitors, pervasive use of the internet, and a complex global economy, manufacturers need to focus on finding ways to sustain and grow their business. Companies today are expected to find ways to do more with fewer resources, such as responding swiftly and efficiently to unexpected changes to their supply chain. The logistics and retail sector is becoming increasingly customercentric, with expectation of free and same day delivery, and 24-hour stock and price updates becoming the norm. More businesses are moving online, requiring better backstock managements, and a more globalised market means that local manufacturers are now competing with overseas business. While technology presents new opportunities and challenges, manufacturers are still encountering more familiar problems such as efficiencies in supply chain. It is becoming imperative that local manufacturers and retailers need to become more agile and responsive to the needs of customers and global demands – this means creating a more visible supply chain, from warehouse to points of sale. 12 | Logistics&MaterialsHandling February 2015
IoT connectivity increases supply chain visibility, all the way from factory, to transport, to the point of sale.
Creating a visible value chain Fortunately, there is now a whole gamut of technologies that make it possible for businesses to monitor in real time, where goods may be transported from one point to another seamlessly, without needing constant involvement from employees. IoT (Internet of Things) solutions are considered to be smart, interconnected devices that provide more visibility into an organisation’s supply chain through sensors that communicate and report on the various events taking place across the supply chain – in the warehouse, on distribution channels, and even at the point of sale.
These solutions help to convert the physical assets and inventories into the digital information that enable companies to know the location, condition, timing, and accuracy of the events occurring throughout the value chain in almost real-time. This also enables new and more efficient business models to be created that are far more efficient in delivering greater returns to investment. The proliferation of mobile devices like smartphones and tablets make accessing the digital data generated by IoT solutions very easy from anywhere across the world. This allows decision makers to instantly react when a crisis
hits the company by giving them specific insights to identify and solve the problem. The data can further be used to fuel innovation by showing new ways to operate more efficiently and improve on existing customer service. Having visibility over one’s supply chain can produce the following benefits: Asset tracking – With asset tracking capabilities, not only will suppliers know where their products are in real time, they will also be able to know what condition their products are in. It will enable them to move their products, particularly perishable goods, through the supply chain quickly and efficiently. This will result in these goods reaching the points of sale destinations in time while retaining their freshness. RFID tagging can ensure accurate record keeping of assets and eliminate the hidden costs associated with searching for lost or misplaced products. Targeted product recall – When an enterprise does not have clear visibility over which batches of their products are defective, they will be forced to recall their entire line, resulting in high operational cost and loss of revenue. With RFID tracking, companies can easily narrow down the affected batches, trace their sources, and do a lean, targeted recall with minimum disruption, revenue loss, and cost. Increased productivity – RFID tagging ensures employees do not have to spend unnecessary time and effort in manually storing and retrieving records and data repeatedly. With a one-time manual logisticsmagazine.com.au
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supplychain
input, information related to a specific RFID tagged product can be computerised and easily available on request. This enables employees to focus more on tasks that generate value for their companies.
Additionally, by tracking the movements of their goods from the warehouse, manufacturers can reduce the number of late orders as well as orders delivered to the wrong destination. IoT solutions also help manufacturers better manage their resources allocated to logistics – in terms of number of warehouses used to house assets, delivery trucks to deliver them to retail outlets, and reducing the amount of labour dedicated to non-value added jobs like manual stock taking. This adds to a retailer’s competitiveness on the ground and against emerging online stores. Better visibility of the supply chain means that manufacturers can save time and money and can plan more effectively for the future.
Reducing operational cost and wastage in the retail back end With greater internet connectivity across households and the emergence of dedicated online retail stores, many manufacturers are setting up digital shops to supplement their bricks-and-mortar stores on the ground. RFID tagging of stock will increase productivity, reducing double handling of data for staff, freeing up hours for other tasks. Among the challenges manufacturers are facing as a result of this is bridging their retail companies better manage their from a centralised location. If there online presence with traditional back-end processes in several ways. are any unexpected delays or holdbricks-and-mortar stores through By tagging products with RFID ups in the delivery of shipment, cross-channel selling and ensuring labels and barcodes before they manufacturers are able to notify a coordinated approach to logistics. leave the warehouse, manufacturers their front end-stores (whether IoT solutions like barcode can track the time taken and the online or bricks-and-mortars) in L M 0 2 and 1 5 RFID _ 0 0tagging 0 _ TR O 1 routes 2 0 1of5their - 0 1 - 0destination 5 T 1 5 : 0 6 : 5 advance. 1 + 1 1 : 0 0 labelling help final
Mike Pitt is the regional manager at Zebra Technologies ANZ
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February 2015 Logistics&MaterialsHandling | 13
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transport
Freight forwarding company puts customer service first Since its inception back in 2008, Perth-based Transitainer have maintained good old fashioned service values, putting the customer first in supplying global freight forwarding services.
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ounding directors Kelly Crossley and Frank Hodder hold the core value of keeping client relationships personal, and are quite passionate about the connection between company and client when talking about the personal service provided by their freight-forwarding business, Transitainer. “When any new client uses Transitainer for the first time, their experience will usually see them they stay with us, as the company has grown largely through our client referral rate which is tremendous,” Hodder said. “We have a small, tight-knit and dedicated team, with collective industry import/export experience spanning more than 60 years.” Hodder said the most important thing that sets Transitainer apart from the crowd is that when a client calls, the team knows them personally, and the client can be confident that they will get results for their enquiry. “Although there should be little need for a client to call once
14 | Logistics&MaterialsHandling February 2015
Transitainer handle all forms of general commerce shipping, from air transport to bulk handling.
services have been engaged,” he said. “Clients never need to chase us up; they are kept fully informed from start to finish, receiving regular updates straight into their working emails. “There’s no having to log in to a web platform and trying to navigate and find their shipping details; Any changes to a shipment, we prefer to phone and speak directly with our
client directly with up to the minute information at their fingertips. Again, we keep it very personal.” Directors Hodder and Crossley pride themselves on the flexibility and bargaining power Transitainer has by fostering relationships with freight forwarding agents around the world. “We control our own freight,” Hodder said. “We have strong third-party
agents all over the world, and have mutually exclusive arrangements with all of them, but we maintain regular checks to see what rates we can secure locally, and we dictate the prices to our agents, our agents don’t dictate to us.” In the field of freight forwarding, Hodder said there were two schools of thought in relation to global transport. “You can have your own offices around the world, but you’re only ever as good as the office that you work out of, whereas we have agents, and if we find that one is not efficient enough we can align another agent, we do have that flexibility.” Transitainer caters for all general commerce freight, via domestic port lodgements or international locations, from small courier items, air freight, LCL and containerised freight, right up to bulk freight. Hodder said since the start-up of Transitainer six years ago, company growth has been substantial, and “quite spectacular”. “I think this is about our personalised service. We regularly follow up orders and make sure that what we said would happen, does happen,” he said. “We are also supported by a very powerful IT system, Cargowise, which is customised specifically to our requirements and ensures our business here in Perth is always technologically in touch with our business around the world. “To stay competitive in the freight forwarding industry today, we feel the key to our success has been maintaining a personal touch with the client, built on trust, understanding and reliability.” logisticsmagazine.com.au
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February 2015 Logistics&MaterialsHandling | 15
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datamanagement
Dealing with data, coping with volume Business operations heavy on logistical concerns are becoming more focused on dealing with “big data”, but what systems are coming online that can help deal with such volumes of information?
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ndustries heavily dependent on big logistics have well and truly entered the world of big data. Nearly every aspect of logistics, from minute processes in manufacturing through to transport, warehousing and maintenance, all activities are measured, tracked, and stored. ERP software helps to deal with these issues and gain both a granular and wider view of business operations. However, due to the mass of data that collection generates, the need for systems that can deal with this level of data, while providing multiple access points such as mobile and web, is high. Many developments in handling big data are coming from the mining industry, which is at the razors edge of the need for efficiency in all aspects of production and transport. Rio Tinto’s global business services head Scott Singer explained Rio has had a number of issues with its digital data management, and the need for cloud and web based applications. “We generate a huge volume of unstructured data and growth rates are expanding significantly,” Singer said. “Like most companies we are not good at ‘hitting the delete key’.” “And like most businesses we don’t have the core expertise to manage this.” But this problem doesn’t just affect mining companies, from explorers through to top-tier miners and their suppliers: All face the issue of dealing with multiple complex business processes throughout a multi-tiered system, with much of it now occurring over many sites all interlinked over the internet.
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Rio Tinto’s Scott Singer said like most companies, Rio is not good at hitting the delete key.
Dealing with all these factors can cost a business dearly if it’s not ready or able to adapt to the changing nature of the market. According to Sage Business
Solutions managing director Mike Lorge a recent study carried out by Sage in Europe and North America showed “midmarket companies with improved data accessibility,
Improved data accesibility can give companies 35 per cent more incremental revenue year-on-year than lesser performers.
quality, intelligence, and usability can expect approximately 35 per cent more incremental revenue year over year than lower-performing companies”. Sage Business Solutions has recently launched its latest iteration of its SAGE ERP X3 software – Version 7 – which “brings flexibility and an entirely redesigned web and mobile experience, giving all employees the information they need wherever they are.” Importantly, the program has scalability allowing the response to grow or contract as work progresses, giving businesses more options as they develop projects or wind down certain operations. Lorge explained: “As companies grow they can lose agility and profitable growth; Sage’s ERP X3 Version 7 provides the tools to simplify and speed up the use of information to revive this growth.” “The primary focus of developing the new version – which is focused predominately on the mid-market space was integrating next-gen user interfaces; making it web based and device agnostic, and really using the BYOD trend, as we see more consumer trends entering the business software world,” Lorge said. The new X3 system provides a next generation alternative to Excel spreadsheet systems that many workplaces still use, with the program featuring embedded workflow, integrated businesses intelligence, easyto-use dashboards, and device independent reporting, which allows for remote access and a BYOD style of operation as well as on site and in the field applications, as it can be used with iOS, Windows phones and most Android devices. logisticsmagazine.com.au
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datamanagement
It also allows for global management capabilities, giving operations with multiple sites or global offices, greater integration of workflows. The software has already been picked up by project and engineering design firm Saitec Australia, which is integrating ERP X3 throughout its business; into its analysis and reporting, financial accounting and management control, and operational management in areas such as production, purchasing, sales, and inventory. Importantly, it also gives added support in terms of traceability and tracking of compliance and One major miner adopted the new system, and within 30 days of using X3 controls, helping businesses to for inventory administration they freed up a number of efficiencies, and had better management over procurement. ensure their entire supply chain from start to finish complies to regulations. of flexibility for businesses. “As it has an overview of the Sage Business senior vice “For instance, the agility it allows many different facets of an president for AAMEA Keith Fenner for operators in monitoring and operation the system can scrape L Mthe 0 2new 1 5ERP _ 0 provides 0 0 _ H Aa N 1 controlling 2 0 1 5 - their 0 1 -stocks,” 0 9 T he 1 4said. : 0 6 : 4 sales, 1 + 1 purchasing, 1 : 0 0 said lot and stock CeMAT AUSTRALIA - Half-Page Ad - FINAL2.pdf
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information, showing an increased sale of certain parts, compare that against existing stock levels, and then present this upcoming inventory issue,” Fenner said. “One major miner has adopted it and within 30 days of using X3 for inventory administration they freed up a number of efficiencies, and had a greater visibility as well as better stock/procurement management. “On top of this it brought in the concepts of seasonality to their supply chain and provided forecasts for likely demand, which was all based off of existing stock plans. “These operators are able to now get a granular analysis using X3 Version 7, using big data,” he said. “Most companies can’t change their cost base for operations, but with greater visibility they can address efficiency issues and help with stock and IT.”
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logisticsmagazine.com.au
February 2015 Logistics&MaterialsHandling | 17
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datamanagement
From millimetres to millions: How carrier companies can recover lost revenue, with SICK sensor intelligence Measurement accuracy is vital to ensure an efficient production process and determine the true cost of a product’s value.
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t’s estimated that each year over $400 billion worth of goods in Australia are sold on the basis of a measurement. Measurement inaccuracies are worryingly commonplace in the Australian transport and logistics industry. The transport and logistics industry is worth more than $150 billion to the Australian economy representing in excess of 14 per cent of Gross Domestic Product. The costs involved in the shipping and delivery of goods are entirely dependent on measurements; inaccuracies can severely effect companies’ profits.
manager at SICK, carrier companies lose hundreds of thousands in revenue due to inaccurate measurements of packages. This doesn’t take into consideration the larger of these companies who churn through 1000s of packages per hour. UPS’s air hub in Philadelphia, Pennsylvania, USA sees approximately 95,000 parcels and documents sorted every hour, day after day. When you consider these figures, it’s clear that the accumulative lost revenue can quickly become astronomical. How can postal and delivery companies combat this flaw in their system?
The importance of measurement
Solution
Incorrect measurements may not make a huge difference on a case by case basis; but consider these inaccuracies when multiplied by the number of parcels distribution centres process in an hour, a month or a year. For example, one of Australia Post’s large parcel sorting machines can process over 12,000 parcels every hour. Recording the correct measurements of parcels is not only important in regard to billing and invoicing; it also determines whether the allocated parcels can fit on the delivery vehicle and how much this will cost the distributor. The option of weight or size is important as road and air transport costs depend on the space occupied, by number of packages that can be carried as well as their weight. Knowing the exact measurements
SICK’s Dimensioning, Weighing and Scanning systems (DWS VMS 420/520) aid revenue recovery, capture data for automated generation of transport documents and provide accurate measurements for load optimisation. The SICK DWS system automatically enables an accurate price to be charged, based on either the weight or the volume, whichever is greater. Clients who purchase a weighing system generally reduce revenue loss by $250,000 within just 12 months, with some paying back in half the anticipated time – just through recovered revenue. Rapid revenue recovery can benefit all sizes of parcel and package carriers, from the smaller operations to those handling many thousands per hour, making the DWS an essential purchase.
18 | Logistics&MaterialsHandling February 2015
One of Australia Post’s large parcel sorting machines can process over
12,000 parcels every hour. allow carrier companies to optimise their loads and, in turn, reduce costs. Measurement accuracy is regulated by The National Measurement Institute (NMI), Australia’s peak measurement organisation, which is responsible for maintaining the nation’s primary standards of measurement and for providing the legal and technical framework for the dissemination of those standards across varying industries. For each and every transaction made, the NMI’s trade measurement is there to ensure ‘you get what
you pay for’ – meaning no loss in revenue or cost. The NMI enforces its standards with regular checks and fines across all trade industries; in the past 12 months, they have recorded more than 1,000 complaints, issued 2,388 organisations with non-compliance notices and completed more than 40,000 tests for measurement and labelling accuracy.
Costly inaccuracies So how much do these inaccuracies cost? According to Jean-Michel Maclou, intralogistics and transport sales
logisticsmagazine.com.au
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technology
Study reveals the tough truth about mobile device usage Jason Lee talks about some of the industry trends that make ruggedised mobile technology an indispensable asset to transport and warehousing operations.
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ast, effective and reliable communications are the core of any successful business and the same holds true for the transport and warehousing industry. As technologies improve and enable large shipments to be moved faster and more safely, customer expectations and competition is also increasing just as rapidly. Now more than ever, it is vital to have superior communication tools that can help optimise workflow, improve reporting and increase safety. Powerful mobile computer devices offer a wide range of benefits to the industry. From tracking inventories to executing transactions, and from integrating processes to collaborating with internal and external business partners, these devices can give businesses a heightened ability to prioritise and manage effectively. Significant technology breakthroughs such as cloud computing and 4G connectivity have further created opportunities for businesses to fine tune their management strategies and optimise workflow, enabling whole operations to become truly connected. Recent research conducted by Panasonic revealed that 72 per cent of the workers in the transport and warehousing industry are actively using their mobile devices anywhere between three to seven hours every day with 48 per cent
logisticsmagazine.com.au
of the workers stating they can’t go longer than an hour without their laptop or tablet. With reliance on fast and ‘alwaysconnected’ communication growing, organisations are investing heavily in equipping their workforce with Panasonic have been mobile technologies that can provide supplying ruggedised computing on the go, are enterprise techology to industry for ready and ensure an effective ROI. nearly 20 years, and the The trend of BYOD (bring your new tablets pack a punch. own device) has also been on the rise with many workers in this industry now using their own smartphones and tablets for many people realise and it doesn’t take much to the efficiency these technologies offer. break the screen or damage the hard drive. However, the work environment of With so much dependence on these devices, the transport and warehousing industry factors like the above have the potential to differs drastically from typical desk office significantly hinder workflow and to bring whole environments. operations to a standstill in case of a breakdown. The research further reveals the harsh working A lot of businesses think the replacement cost environment of the industry with workers of a damaged device is the biggest financial expressing that their devices were exposed to headache they face. extreme hot and cold temperatures (40 per cent), However, Panasonic has found that purchase direct sunlight (40 per cent), sand and dust (24 per price accounts for only roughly a quarter of that cent) along with rough handling and drops (36 per cost when using a consumer-grade device. cent). Much more significant are other costs such as The study also found that human error is a employee downtime, delivery of service suffering prominent damaging factor, with most workers when the device is down, and IT support. in the sector confessing to have dropped or Jason Lee is the product marketing manager for nearly dropped their mobile devices on an Toughbook, Panasonic Australia average three times in the last year. Not surprisingly, these factors have led to the majority (68 per cent) of respondents experiencing their device breaking down due to hardware failure, half of them twice in the last five years. While consumer grade tablets and laptops can be effective, they are not designed to withstand such a stressful work atmosphere nor the natural elements that are a way of life in this highly mobile industry. A typical laptop or tablet is more delicate than February 2015 Logistics&MaterialsHandling | 19
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