Logistics & Materials Handling - September 2016

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inside VOL47 ISS3 AUGUST/SEPTEMBER 2016 Industry News Services Mining Materials Handling Transportation Asset Management

Flying around the Paris climate accord?

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Supply Chain World Domination

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behindthecover inside VOL47 ISS3 AUGUST/SEPTEMBER 2016

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Industry News Services Mining Materials Handling Transportation Asset Management

Flying around the Paris climate accord?

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contents contents

04 Women in Industry 04 Bulletinboard

14 Vehicle Safety42 Data Capture & Tru-test of quality.

MANAGING DIRECTOR: John Murphy MANAGING John Miletic Murphyt ASSOCIATE Martin Sinclair e martin.sinclair@primecreative.com.au MANAGING DIRECTOR: EDITOR: Branko 02 8484 0976PUBLISHER: e branko.miletic@primecreative.com.au EDITORIAL CO-ORDINATOR: BenSam Hagemann SENIER JOURNALIST/EDITOR: Murdentt02 028484 84840884 0812e eben.hagemann@primecreative.com.au sam.murden@primecreative.com.au PRODUCTION e ziba.mahabat@primecreative.com.au PRODUCTIONCO-ORDINATOR: CO-ORDINATOR:Ziba ZibaMahabat Mahabatt t02028484 84840625 0625 e ziba.mahabat@primecreative.com.au KEY Richards 028484 84840624 0829 ee nick.baker@primecreative.com.au tim.richards@primecreative.com.au KEY ACCOUNT ACCOUNTMANAGER: MANAGER:Tim Nick Baker t t02 PRIME CREATIVE MEDIA PRIME CREATIVE MEDIA Tower Centre, NSW 2067, Australia Tower 2, 2, Level Level 3, 3,475 475Victoria VictoriaAvenue, Avenue,Chatswood, Chatswood,NSW NSW2067 2067Australia AustraliaLocked LockedBag Bag4700, 4700,Chatswood ChatswoodDelivery Delivery Centre, NSW 2067, Australia Tel: Tel: (02) (02) 8484 84840888 0888 Fax: Fax: (02) (02)8484 84840633 0633 ABN ABN 80 80132 132719 719861 861ISSN ISSN0004-976X 0004-976X www.primecreative.com.au www.primecreative.com.au © Copyright Copyright Prime Prime Creative Creative Media, Media, 2016 2016 © All All rights rights reserved. reserved. No No part part of of the thepublication publicationmay maybe bereproduced reproducedororcopied copiedininany anyform formororby byany anymeans meanswithout withoutthe thewritten writtenpermission permissionofofthe thepublisher. publisher.

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Supply Chains

05 Automation 15 Supply Chain 24 Factory Materials 06 Mercury Awards Sustainable supply chains.

Handling 06 Environmental Logistics 16 Innovation in Logistics 2010 Mercury Awards Spiral conveyor solves launched.

44 Forklifts & Lifting heat problems.18 Jobs & Employment 08 International Trade Humbled and Exalted Six new overhead cranes Cart dollies for simple – 2009 Mercury Award for Ferrocut.

10 Warehousing & Retail handling tasks.19 Retail Logistics winners.

Airfreight system reduces handling costs.

11 Sustainability & Security Double pallet dispenser.

20 Packaging & Labelling 14 Training Palletising robot.

Hybrid forklift.

12 Logistics Solutions 22 New Products Bell’s Transport benefits from Skills for Growth 32 Warehousing23 & Technology Storage 49 Handling Hazardous 13 Acquisitions program.

Goods Record picking productivity.

Gloves for handling 16 Information hazardous substances.

Automated storage.

Technology - Supply Hand-held eyewash.

Chains Storage success.

Information driven.

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Women in Industry

A rising star of the food industry The third annual Women in Industry Awards were announced in Melbourne in July. Colly Galbiati, a food manufacturing success story, was named 2016 Rising Star of the Year at the event.

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olly Galbiati’s journey began in 2012 when she launched premium snackfood company Soma Organics.

She had always been passionate about healthy eating and raising public awareness of quality food and nutrition.

Through this passion, Soma Organics was born.

Soma Organics started in the kitchen of Galbiati’s home where she began making the (later awardwinning) Soma Bite snack bar range by hand.

She quickly saw success and consequently ramped up production.

Due to the large increase in demand, she transformed her successful home kitchen business into a full-scale food manufacturer, specialising in snack bars, in just over nine months.

Today, the Soma Bite range is available in more than 500 retailers across Australia, including Woolworths, IGA Supermarkets, Foodland Supermarkets, and independent retailers. The products are also exported to Singapore and Dubai.

In 2013, Galbiati secured a deal with beverage company, Your Tea International Group, to create and co-brand a range of organic protein snack bars, Your Soma Bar which are sold exclusively on the Your Tea website.

Journalist Sharon Masige and Colby Galbiati at the Women in Industry Awards 2016

Galbiati has also taken her business in a new, sustainable direction, launching and co-founding the Eco Bar: a raw energy bar made from cricket flour.

The motto for Soma Organics is ‘Diversify, Resilience, Success’. According to Galbiati, she has learnt very quickly that you must be resilient as a small business owner in the food manufacturing industry.

As the snack bar sector has become more saturated, she has learnt that diversification is key to maintaining a successful presence in the industry.

She has spearheaded Soma Organics’ new strategy to label products under Soma Organics, created partnerships, and produces whitelabelled products, which she believes has helped in expanding the company’s portfolio.

However, it has not been an easy run; being a newcomer in the food manufacturing industry has its challenges.

According to Galbiati, she learns “every single day” and has benefited by not having any preconceived ideas on how things should be done.

Food puns aside, she has not followed a cookie-cutter template when launching a product range – she has developed strategies and looked at different ways of doing things.

She has disrupted the current methods of food development and product development, which has resulted in successful product ranges and a diverse business structure.

Because of her ‘grass-roots’ start-up success story, she is seen as a business example for many entrepreneurs in the health food space.

She has looked, down the track, to the possibility of launching a mentorship program or consultancy service directed at helping health food start-ups.

This is not the first time Galbiati has won an award. She took out the Excellence in Manufacturing gong at last year’s Women in Industry Awards; and the Best Snack Food Award at the Food & Beverage Industry News Magazine awards in 2014.

She is truly a rising star of the food industry.

The other winners of this year’s Women in Industry Awards were: Marketing/Communications Award – proudly supported by Logistics & Materials Handling: Jodie Collins, Elgas.

Industry Advocacy Award – proudly supported

by Prime Mover: Christine Gibbs Stewart, Austmine.

Social Leader of the Year – proudly supported

by Australian Mining: Alicia Ranford, Mining Family Matters.

Business Development Manager of the Year – proudly sponsored by ABB: Donna Curl, Donaldson Australasia.

Excellence in Commercial Road Transport – proudly supported by Trailer: Melissa Taylor, Taylor’s Removals & Storage.

Excellence in Manufacturing – proudly sponsored by BOC: Gabby Montagnese, New Age Caravans.

Excellence in Engineering – proudly supported

by PACE: Kathryn Burr, Boeing Defence Australia.

Excellence in Mining – proudly sponsored by MMD: Kirsty Liddicoat, BHP.

4 | Logistics&MaterialsHandling August/September 2016

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Automation

Plans unveiled for Tesla autonomous trucks Tesla aims to “expand to cover the major forms of terrestrial transport” and unveiled autonomous buses and trucks set for 2017 release.

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esla Motors Chief Executive Elon Musk has outlined a new model for vehicle sharing and disclosed plans for several new electric vehicles, including much heavier trucks requiring significant capital and staffing at a time when the company is losing money.

Musk, releasing an updated strategy in a blog post on Tesla’s website, said electric versions of a pickup truck, small sport-utility vehicle, large over-the-rad truck and bus-type vehicle are planned for over the next several years.

Jessica Caldwell, analyst for auto research website Edmunds.com, said the plan was audacious. “The plan sounds overly ambitious for now, especially considering that there are already doubts about whether Tesla can meet its goals for the next two years.”

In addition to launching the Model 3, the company is accelerating investments needed to aim for volumes of 500,000 annually—a significant increase over the 50,000 sold last year. Musk’s ambition to add a small SUV and a pickup truck could help the auto maker better participate in a light truck market that is growing and now represents nearly 60 per cent of automobiles sold in the U.S. The retooling of the product plan to include heavier vehicles will require a shift in focus and capital. Tesla thus far has focused on building lighter vehicles from a factory it runs in California and is launching a large battery plant in Nevada.

fatality connected to the Autopilot feature in Tesla’s Model S sedan. Regulators are investigating the crash amid scrutiny of Tesla’s marketing of the self-driving features.

Tesla is proposing to pay between $26.50 to $28.50 a share to acquire SolarCity, a premium of as much as 30 per cent based on its June 21 stock price. SolarCity’s board and advisers are currently reviewing the offer.

Musk has been meeting with Tesla’s largest investors, including Fidelity Investments and other big mutual funds, urging them to support the acquisition. Musk is barred from voting on the deal over concerns of a conflict of interest.

Fidelity declined to comment.

“As the technology matures, all Tesla vehicles will have the hardware necessary to be fully selfdriving wil fail-operational capability, meaning

that any given system in the car could break and your car will still drive itself safely,” he said.

Musk said the company would work on vehicle autonomy and said he anticipates that owners will be able to “share” a Tesla vehicle and have it earn income picking up people when the owner wasn’t using it.

“You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you’re at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or lease cost,” he said.

The CEO’s new master plan focused squarely on products and technology and steered clear of outlining a strategy for individual markets, such as China or Europe.

Musk said the heavy-duty trucks and buses are “in the early stages of development at Tesla and should be ready for unveiling next year”.

Tesla will face competition in the field of autonomous heavy vehicles from the likes of Mercedes-Benz, which recently tested its autonomous bus along a 20-kilometre-long route in the Netherlands.

Among Musk’s recent plans is a move to combine Tesla with SolarCity Corp., forming an energy company that sells various products.

Under his new plan presented Wednesday evening, customers will be able to buy batteries and solar panels at one stop.

Musk’s proposed combination of the two companies—both of which count him as the largest shareholder—was first presented to investors in late June, but has been overshadowed by the disclosure of a traffic logisticsmagazine.com.au

August/September 2016 Logistics&MaterialsHandling | 5

Environmental Logistics

Sailing around the Paris climate accord?

Shipping was not included in the global temperature-reduction targets agreed to last year, but there is much businesses and shipping nations can do to act on global emissions standards.

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he 2015 Paris Agreement on Climate Change was viewed as ‘historic’ in its goals to move global industries forward in reducing carbon emissions.

So far, however, it appears that shipping nations are more intent on sailing around Paris than following its principles.

The Paris agreement on Climate Change achieved two important things: it set goals for reducing the impact of climate change and it identified the measures needed to achieve the ambition. The ambition is to achieve a global average temperature rise “well below” 2 degrees Celsius. The way to achieve it was outlined in the Nationally Determined Contributions.

Shipping doesn’t figure in these NDCs as it is a global activity, so it would be complicated to apportion shipping emissions to nations. Instead, the goal of reducing greenhouse gas emissions from shipping falls to the International Maritime Organization, the specialised agency of the United Nations that sets global standards for international shipping.

Kitack Lim, the IMO’s secretary-general since the start of this year, has called the fight against climate change “a top priority.” Yet, the shipping nations within IMO have fallen well short of following the Paris model.

Three things are missing: a target, measures to reach the target and a driver of change. Shipping has an important stake in the global efforts to reduce carbon emissions. The industry’s emissions

6 | Logistics&MaterialsHandling August/September 2016

output measured 900 million metric tons in 2012, representing 2.6 per cent of global emissions.

According to an IMO study, greenhouse gas emissions may increase up to 250 per cent by 2050.

The industry would have to cut these emissions in half by 2050 to be in line with the pathway to the Paris target. However, there is no target for the industry at all.

At an IMO meeting in April 2016, two proposals were discussed to define shipping’s response to the global climate-change target. Yet it was deemed too sensitive to talk about targets, so the proposals included only fairly elusive discussions of “a fair share” and the “contribution” of shipping to emission reductions. In the most optimistic case, a “fair share” would be decided by the end of 2017, fully two years after the Paris accord.

For the moment, the only thing that has been decided is to install a working group in October 2016.

In terms of practical measures to implement, nothing really far-reaching has been put in place.

The shipping industry reduced global emissions by about 10 per cent between 2007 and 2012, but this was the result of moderating trade growth that came in part because of the financial crisis and from “slow steaming”—the effort to reduce effective capacity by moving ships more slowly on their trade circuits.

In fairness, the IMO has managed to approve some regulations. The Energy Efficiency Design Index requires that ships built from 2025 and on

produce 30 per cent less in carbon emissions than current vessels. But it will take a long time before this will have a substantial impact considering the long life cycles of ships.

Moreover, this standard may simply codify improvements in engine efficiency that would have taken place anyway. No other measures for “decarbonising” maritime transport have been implemented or set in motion.

Yet, there are ways in which substantial carbon emission reductions could be realized, including mandatory speed limits, more use of liquefied natural gas and alternative energy sources.

Unfortunately, there has been little to drive change toward more aggressive action. Low oil prices have lowered the appetite to apply innovative measures to reduce emissions. Marketbased mechanisms, such as a bunker levy, carbon tax or an emissions trading scheme would drive the industry to act more forcefully. But no agreement could be reached on such measures despite discussions at the IMO. Instead, participants agreed to apply a “threestep approach,” consisting of global data collection of fuel consumption of ships, analysis of the data and decision making on possible measures. The final decision on the first step will be taken in October 2016, but it will take a few years before the first data will be analysed. So don’t expect a global shipping carbon tax before 2020.

Regional pressure could get the global community of shipping nations to advance beyond the current excruciatingly slow pace. This has happened at the European Union in areas such as data collection on shipping emissions and on sulfur emissions regulation.

The shipping sector is heavily opposed to such regional initiatives, and aims for a global level playing field—global regulation for a global industry. However, every day of inertia on shipping’s carbon emissions makes actions at the European level more likely.

An EU emissions trading scheme is under review and this provides a window of opportunity.

The European Parliament would like to include shipping in this scheme, and has proposed something that resembles a carbon tax, with a fund for greening initiatives in shipping and ports.

While some large shipping nations may be waiting for “winds of Paris” to blow over, this proposal points to a possible way forward that could be implemented not only in Europe but at a global level. logisticsmagazine.com.au

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International Trade

Today’s ships and cargo are smarter than ever A glance at the objects around you or work will reveal objects brought from across the world, from the bagged salad in your fridge (Kenya), to the paper upon which you’re reading this article (Taiwan, China, the US), or the table upon which it rests (Sweden).

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he enormous volume of global trade that brings us products from all over the world has been made possible by a profound technological revolution occurring behind the scenes.

The world’s biggest container shipping firm, Maersk, estimates the cost of transporting an apple from a field in New Zealand to a cold store in Europe is eight US cents. Logistics experts talk of “landed costs”, the sum of all of the various costs associated with freight. There is also an environmental cost, of course, for example bringing vegetables from afar rather than from local farms.

But the landed costs of many products have fallen such that it’s usually cheaper to transport many items halfway around the world than to produce them locally.

Much of this fall in costs comes from the efficiencies ushered in by containerisation, which since it was introduced in 1956, has had a greater effect on globalisation than all the trade agreements signed in the past 50 years.

The largest container ships today, such as the CSCL Globe and MSC Oscar carry around 19,000 TEUs (20ft equivalent unit – a standard 40ft container is two TEUs). But ships are not likely to greatly grow beyond 20,000 TEUs for the foreseeable future – much as the Airbus A380, currently the world’s largest passenger aircraft carrying up to 853 passengers, is probably as big an aircraft as we will see. If a ship or aircraft is so big and expensive that nobody can operate it (in terms of costs and system constraints) then it’s of little use. So while there have been remarkable achievements in speed and scale, today it is the communication technology that links systems together that has the greatest logistical impact.

the right information to the right person or machine at the right time).

Increasingly it is not just control processes that are growing in intelligence but the ships and cargoes themselves. For example: by law, ships above a certain size are obliged to transmit updates on their position via Automatic Identification Systems (AIS). It is possible to see this information online, a real-time snapshot of global shipping.

Connected ships perform better. For example, by taking smart routes around bad weather, and allowing remote monitoring of ships for safety. Smart container technology can monitor temperature and humidity of containers for changes that could damage the contents, or to change the environment so as to, for example, prevent the spoiling of fruit in transit due to delay.

Details concerning individual shipments are transmitted before the ship arrives at port, allowing customs authorities time to profile and sometimes pre-approve incoming cargo.

To the same end, eFreight initiatives cut down the paperwork associated with freight: the International Air Transport Association (IATA) once estimated that there can be up to 25 separate documents accompanying an air freight shipment.

Better data brings more automation An improvement is the “single window” online portal approach to which all those involved have access. This is regarded as the key to making freight movement easier, giving those across the

supply chain the data they need, meaning product deliveries can be sped up or slowed down so that cargoes arrive at the time and place they’re needed – the “gearbox approach”. Why have a warehouse at the arrival end? Just deliver the product exactly when required, straight into waiting trucks.

On arrival, container handling is done by automated cranes, which are cheaper and safer than human operators. Better cargo tracking means freight is traceable from setting off through to final destination. Less product is lost and damaged thanks to more accurate handling, which means lower incidental costs. Many warehouses now use automated pick-and-pack systems based on barcodes and RFID radio transmitting smart tags rather than human handlers. Once considered science fiction, robots in the warehouse are becoming affordable, while warehouse staff are equipped with augmented reality applications and smart glasses.

Technology improvements have also found uses in the trucking industry – and convoys of wirelesslinked, semi-autonomous, driverless trucks (known as “platooning”) are a possibility in the near future.

So next time you receive the wrong delivery it’s quite likely to be your fault (for ordering the wrong thing), and the company who sold the item will have the data trail to prove it. On the other hand, whether we need and can afford the vast array of goods that global logistics systems deliver cheaply and efficiently to our door – fresh fruits and flowers all year round, for example – is another conversation worth having.

The network is the unseen hero The internet of things (IoT) refers to small, internetconnected sensors that can detect and transmit information. Network technology company Cisco extended this idea to the “internet of everything” (IoE), in which the sensors talk not to a central hub but to each other, exchanging data and making decisions autonomously based on that data. The four components are data (how it is gathered and used), people (how they are connected), things (network-connected devices providing data for intelligent decision making) and process (delivering 8 | Logistics&MaterialsHandling August/September 2016

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Warehousing & Retail

Manhattan Associates seeks to innovate the retail sector Supply chain commerce provider, Manhattan Associates, is looking to level the playing field between online shopping and physical retail locations with their Omni-Channel Store solutions, delivering the increased convenience and agility that retailers need to meet the evolving needs of today’s shoppers.

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t CeMAT earlier this month, Manhattan associates had on display their Mobile Distribution Management application, which helps warehouse managers access a wealth of information that allows them to better manage labour, optimise slotting a much more from any device, including mobile devices.

LMH sat down with Manhattan Associates CEO Raghav Sibal and discussed their warehouse management solutions.

LMH: How important is it for Manhattan to go to a conference like CeMAT and showcase their product?

RS: It’s very important for Manhattan Associates to take part in events like CeMAT because we are a major player in the warehouse space from a WMS perspective. As CeMAT is focused on all solutions that can be used within the four walls of a warehouse, it is vital that we are on hand to show attendees what a WMS can offer their business.

CeMAT is also a great opportunity for Manhattan Associates to showcase the many innovations we are currently bringing to the global and Australian market. Manhattan’s heritage revolves around WMS solutions for warehouse environments and it remains a major focus for us, particularly in leading innovations in omni-channel, eCommerce and channel solutions.

LMH: What are some of the trends in warehouse management? Have there been any major changes in technology?

RS: Manhattan Associates offers warehouses very robust WMS solutions. More recently we have concentrated on what else we can do to make warehouses more efficient and productive. As part of this our key focus has been on building mobility into our solutions.

With access to mobile apps on a tablet or smartphone, warehouse supervisors are able to manage their operations directly from the warehouse floor or remotely when they are offsite. Mobility that interacts seamlessly with

10 | Logistics&MaterialsHandling August/September 2016

our WMS and offers ease of use has been a very important area of innovation for Manhattan.

LMH: How has it changed over the past year?

RS: Over the past year Manhattan’s innovations have emphasised the increasing challenges retailers are facing as the omnichannel and eCommerce areas of their businesses expand rapidly. Retail operations are under more pressure than ever to fulfil single orders in shrinking timeframes.

Manhattan has built applications specifically catering to the needs of eCommerce to help retailers better meet the demand.

Manhattan has also witnessed a changing warehouse workforce, with many university students and graduates taking short-term contracts, often during peak periods where retailers have increased orders to fulfil. These shorter term millennial workers often take contracts during which they use their own mobile device at work. Manhattan’s eCommerce app can be easily downloaded and used by these workers to fulfil online orders. For retailers that are today facing much higher turnover in their workforce, it is vital that their workers are able to have access to apps that are intuitive and easy to train on. A younger workforce also demands more advanced technology, which today means apps on mobile devices.

LMH: How does Manhattan Associates differentiate itself from the competition?

RS: Manhattan Associate’s single biggest differentiator is our strong focus on innovation. We are the largest investor in research and development compared to other companies working in the WMS space.

At Manhattan we have a clear strategy of innovation that has helped us develop solutions that have flexible functionalities and capabilities that can evolve with technology advancements into the future. This flexibility in solutions is possible because Manhattan’s strategy is to innovate rather than acquire a range of new technologies that may not be designed to work together seamlessly.

Manhattan views the supply chain as a whole, rather than different sections of it in isolation. This ensures our WMS solutions can perform as an end-to-end supply chain platform from eCommerce and the shopfront right through to the warehouse and transport and logistics. We believe that businesses have a lot of advantages to gain from having a holistic view of their entire operations. This level of visibility means that retailers can be much more dynamic, for instance in deciding whether based on transport costs and workforce capability it is best to pick an eCommerce order from a store or warehouse.

LMH: Where does Manhattan sees the future of warehouse management heading?

RS: Manhattan Associates strongly believes businesses now and into the future need flexibility. This includes flexibility for changing volumes such as fluctuations during promotions or lean periods. Flexibility best places businesses to cater to all flows of products from one warehouse - fulfilling orders to their stores, as well as online orders.

The big challenge for businesses is bringing in flexibility whilst also ensuring efficiency and productivity levels are optimised. This is when a higher level of system flexibility offers the best results, for example by being able to manage different workflows and volumes by fulfilling online orders from either the warehouse or store.

Full visibility also allows businesses to be leaner in their operations and to immediately identify any issues that may impact on the productivity or accuracy of workers.

From a technology perspective, businesses are increasingly switching to a centralised cloud-based WMS solution, that offers visibility of their operations at a smaller upfront cost. For smaller businesses in particular, cloud solutions also offer the flexibility for them to scale up as the business grows and ensure the system is current with constant updates and upgrades. http://www.manh.com/en-au/about-us/glance logisticsmagazine.com.au

Sustainability & Security

3PL’s play key role in sustainability & security Third party Logistics providers are conducting research into understanding the costs of creating supply chains that are friendly to both the environment and the consumer.

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he study, based on a survey of 1,644 logistics executives from North America, Europe, Asia Pacific and Latin America identifies a number of key findings including: • Green supply chain initiatives are essential for future business success according to 98% of logistics executives, yet the majority is unwilling to invest any additional funds in the greening of the supply chain.

• The theft of material goods continues to be the top security concern. But the changing business environment means that companies must focus more attention on other causes of supply chain disruption from the theft of intellectual capital and natural disasters, to the closure of ports and product tampering.

• Underpinning sustainability and security are strong relationships across the different parties in the supply chain achieved through integrated systems and services. Through deliberate efforts to form solid relationships with logistics providers using detailed contracts and metrics, companies can achieve significant cost savings, shorter order cycles, better customer service and improved business efficiency.

• Although the survey shows that 3PLs and their users believe the associated costs of creating a more secure, integrated, environmentallyfriendly supply chain should be split, there is continued resistance to collaboration and the unspoken assumption that costs will ultimately be carried by the customer.

Green supply chain Companies are almost unanimous in their belief that green supply chain initiatives, such as local sourcing, are important but there is widespread uncertainty about how to move forward with sustainable supply chain operations. However, companies must begin to act before it is too late.

The survey shows that the ‘greening’ of the supply chain will have an increasing impact on network design, transport modes used, selection of equipment, business processes, behaviors and balance sheets. Yet few users rate green capabilities as a deciding factor when choosing 3PL partners.

Only 46 per cent of respondents said that logisticsmagazine.com.au

the effect of supply chain operations on the environment was a factor considered when selecting a 3PL. Collaboration is key; only when the source and impact of emissions can be accurately assessed can 3PLs and their customers become accountable and will the supply chain become more environmentally friendly.

“3PLs and their customers must be open about expectations and capabilities, if they are to find innovative ways to improve supply chain security and green credentials,” says Hans Hickler, CEO - DHL Global Customer Solutions.

“When companies cooperate with 3PLs, there is often limited readiness for both parties to adequately learn current practices, develop joint solutions and share the benefits.”

“But those willing to advance the 3PLcustomer relationship beyond today’s sticking points stand to be rewarded with supply chain efficiencies that deliver competitive advantage and customer satisfaction.”

Security in the supply chain Although 76 per cent of respondents called their 3PLs secure, the survey reveals a gap between 3PL users’ expectations and the current security capabilities of their 3PLs. Companies are becoming increasingly concerned about the costs of meeting compliance mandates designed to enhance supply chain security in the face of terrorist threats.

However, by working closely with 3PLs and setting up the right processes, companies can stand to gain considerable benefits that help recoup costs and improve the efficiency of the supply chain.

“Though the overall 3PL picture is similar to last year, it has become clear that green supply chain and supply chain security are increasingly becoming key drivers for success,” says Dennis Wereldsma, Global Leader of Capgemini’s Distribution Sector.

“As compliance and regulation around green and security practices becomes increasingly prevalent, 3PLs and users that are greener and can tout their security capabilities can gain significant market advantage.”

Integrated Logistics The benefits of supply chain collaboration and logistics integration can be huge, but this can only be achieved by putting aside fears over loss of control, visibility, internal competency, and of being too dependent on a third party service provider.

However, through the use of comprehensive service level agreements that balance costs and risks and 3PLs investing in their own service offerings, companies will begin to experience the payoffs of working so closely together.

By adopting integration-enabling, open standards-based technologies together with 3PLs, companies will be able to increase agility, lower costs and ensure stronger relationships.

“The greatest shared challenge is that of forming and growing successful collaborative relationships between users and providers of logistics services,” maintains Dr. John Langley from the Georgia Institute of Technology.

“Without a commitment from both sides little progress can be made in the greening of the supply chain and supply chain security.”

“More than three quarters of 3PL users rate consolidation, routing, and mode selection as the top services 3PLs can contribute to green strategies. However, just 31% indicate that their 3PLs currently offer these capabilities.”

Finally, technology is also a high priority for 3PL users. 3PLs continue to outsource web-enabled communications, visibility tools, warehouse/ distribution management, and transportation management/execution.

However, the IT expectation/performance gap persists, with only 38 per cent of the respondents satisfied with their 3PL providers’ information technology capabilities.

“The gap between customer’s expectations and the current IT capabilities of 3PLs is a significant challenge to the industry,” says Jon Chorley, Vice President Product Strategy, Oracle.

“3PLs must standardise and modernise their applications and IT infrastructure so they can offer innovative, repeatable and cost effective services to the market.”

“This applies particularly in the areas of green supply chains and supply chain security, where IT technology is a key enabler.”

August/September 2016 Logistics&MaterialsHandling | 11

Logistics Solutions

Ontime Group delivers affordable and seamless solutions Founded in 1983, Ontime has tailored high performance, cost effective delivery solutions for businesses throughout Australia. Logistics & Materials Handling Editor Sam Murden sat down with Ontime General Manager Walter Scremin to ask about their new delivery solutions which could be tailored to a business’s needs and requirements.

SM: What can you tell me about Ontime’s history within the Logistics sector?

WS: Ontime itself has been going since 1983.

The business specialises in permanent contract hire of drivers and vehicles and we do a great variety of work across a range of industries, in particular the automotive industry in relation to delivering spare parts.

SM: What have you noticed occurring in the industry as of lately as you operate in a changing environment?

WS: I think part of what’s occurring out there and you look at the business’ major expenses, any business that’s any size and has a need for distribution would include freight distribution as one of their major costs. There’s always a focus on freight and it’s easy to lose track of the process of saving money on the rates of transportation, whether it’s a couple of cents per kilo or dollars an hour etc. What we find is that more often than not, people who are in charge of one of the major expenses in the business are not necessarily trained in logistics or transport, instead coming off the floor and been put in charge of the freight area due to internal promotion and trust. They just are not as well equipped to do that job as perhaps a logistical expert/manager might be.

SM: How does the disparity between skills and management affect the fleet and freight management industry that you operate in?

WS: People don’t fully understand the impact

12 | Logistics&MaterialsHandling August/September 2016

that their decisions make. The difference between getting a cheaper rate and a dearer rate, for example, can mean a delivery that was intended to be received every day now arrives every second day. If the skill set’s not right, people inevitably continue to do things the way they’ve always been done. Because they may not be up to date with the latest technologies or methodologies, they don’t know what they haven’t been told.

The marketplace is so competitive that the rates really don’t play a big part, there’s not a lot of disparity between one carrier and another.

Instead, it comes down to the processes and the systems and how much value these processes add towards a business’ operations.

SM: So it’s better to diversify the costs rather than put it all into one package?

WS: Absolutely! Ontime’s strong belief is that you can’t fix a problem until you know what it is. We try and streamline things and assist clients with recording, so it becomes much more apparent where the expenditure is going.

SM: How important is the flexibility of the business to the clients and customers that you serve?

WS: Flexibility in this day and age is critical, especially when discussing clients, expenditure and delivery services. The days are gone where consumers are willing to wait for a period of time for whoever they’re buying it from says they are going to wait. If you look at the marketplace, the consumers are getting more and more power

and their expectation is forever increasing. As a company that has a distribution requirement, we need to make sure we can cater to our clients.

You need to meet or exceed their expectations of service, be aware of what the competitors are doing out in the marketplace because we live in a world where we want everything today. If you don’t have the flexibility to provide that service, then someone else will.

SM: How has OnTime attempted to address this challenge?

WS: What we do for businesses is actually create that point of flexibility. A business that is operating their own vehicles and their own drivers would have a static workforce and a static amount of vehicles to be able to do the distribution. The impact of having something that’s so fixed is that if your volume is down and you only have four vehicles for four drivers, you’re creating an inefficiency that’s costing you money. If volumes are up but you have fewer drivers for the number of trucks then a business will be forced to either pay the higher costs or will be left unable to service the clients’ needs. In essence, people who use OnTime have the flexibility to allow them to be catered for whatever their requirements may be.

SM: Finally, do you foresee any major changes in the way that OnTime operates its business especially considering the influence of technology?

WS: We are very proud to have had a long relationship with Burson, and we look forward to assisting their fleet management program in Brisbane. Sometimes there are benefits to using smaller companies over huge multinationals, including the ability to specialise in a certain area, to be more responsive, and to offer more personalised service. OnTime knows the automotive sector well. We understand the efficiency, service levels and technology required for success. Service is king in this industry and if you don’t perform, clients simply use the opposition in what is a highly competitive market. logisticsmagazine.com.au

Acquisitions

Aurizon cuts 300 jobs whilst writing off Aquila acquisition Freight rail operator Aurizon has written off its investment in Aquila Resources and said it was shedding about 300 jobs in response to weakening coal prices.

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he company plans to cut approximately 180 workers in train crews, yard operations, maintenance and infrastructure production, plus about 120 middle and senior managers.

Aurizon also announced an additional $73 million impairment against its investment in Aquila Resources, due to the company’s deferral of the development of its coal assets.

The announcement comes off the back of proposed job cuts at its Callemondah, Jilalan and Pring depots.

According to Chief Executive Officer Lance Hockridge, those in leadership positions in operations, representing approximately 20 per cent of management roles have been affected.

“Clearly we’re operating in a tough and

volatile market with lower growth conditions for our customers,” managing director and chief executive officer Lance Hockridge said yesterday.

“In this environment, we are targeting further reductions in our cost base and finding new ways to drive asset and labour productivity.”

“Work is underway across the company, in reducing management roles, in driving down corporate and support costs and ensuring workforce numbers are aligned to forecast customer demand,” Mr Hockridge said.

Although Aurizon’s underlying earnings were within guidance at $871million, it had $528 million worth of impairments in 2016.

With the downturn in full effect, Aurizon

reported the amount of coal, iron ore and freight it hauled would be down on last year’s tonnage of 211 million tonnes.

The company expects to haul 206.8 million tonnes of coal this year compared to last year’s 211 million tonnes.

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August/September 2016 Logistics&MaterialsHandling | 13

Vehicle Safety

5 Easy ways to avoid overloading a truck

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xceeding a vehicle’s maximum permissible weight carries huge risk not only in terms of fines and penalties, but also in terms of the danger it poses to human life and the damage it causes to vehicles and roads.

Given that there are many ways of avoiding overloading, there’s no excuse for breaking the law and putting lives and assets at risk.

From something as simple as knowing your vehicle’s plated weight limits to installing truck scales, there’s a myriad different ways of ensuring compliance and creating a safer driving environment for all involved.

Vehicle overloading is also false economy and anyone who is tempted to save money by exceeding payloads to save on fuel or reduce transport costs is deluding themselves. They will pay a high price eventually.

Moreover, any investment made in vehicle weighing technology is marginal compared to the potential risks and costs of overloading and the equipment soon pays for itself in terms of all the benefits it offers.

For example, truck scales are reasonably priced, easy-to-install and very easy to use 14 | Logistics&MaterialsHandling August/September 2016

and whilst they obviously eliminate the possibility of overloading through accurate and reliable weight measurements, they also enable reductions in fuel consumption, less wear and tear on vehicles, lower maintenance costs, improved safety, increased revenues and increased operational savings.

In addition to installing truck scales, here are some more easy ways to avoid overloading your truck.

1. Know your truck’s maximum permissible axle weight and gross vehicle weight, which are recorded on the vehicle’s identification plate.

2. Don’t trust someone else’s information. Be cautious when it comes to a weight declaration on an invoice, picking note or delivery note as it may not be accurate.

3. Remember, gross vehicle weight (GVW) is the weight of the vehicle as well as the whole load that it’s carrying, including the weight of the driver, passengers, fuel, packing materials and so on, so it’s important to factor these in when calculating the weight of your truck.

4. Weight distribution is also an important factor. Uneven loads make a vehicle less stable and harder to handle and also put additional

undue pressure on tyres, brakes and other vital parts which can compromise the safety of the vehicle.

5. As previously mentioned, the easiest – and the safest and most reliable – way of avoiding overloading is to use vehicle weighing equipment. From weighbridges and weigh-inmotion axle weighers to onboard truck scales, these precision instruments provide highly accurate weight data, even in rugged, harsh outdoor environments.

Drivers can be requesting the wrong vehicle for the application, while the fleet manager believes everything works fine.

A customer can always check with the Federal Motor Vehicle Safety Standards to ensure the vehicle you’re considering is compliant with FMVSS safety regulations.

Ensuring your truck is within legal weight limits isn’t just a question of compliance – it also makes sound business sense.

Truck scales and weighbridges can help businesses reduce their operating costs and improve their profit margins and it should be impossible to turn your back on these benefits. logisticsmagazine.com.au

Supply Chain

Conquer the supply chain with a small army Any world leader throughout history who’s ever tried it could tell you that you just don’t have enough resources to fight all the battles you need to gain total victory. Darren Matthews, Business Development Analyst for WiseTech Global explores how to gain a competitive advantage with the right resources.

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owever, history has shown that even with minimal resources the grandest battles can be won. Your business is no different. With the right strategies, you truly can conquer the logistics industry with a small, dedicated army that utilises simplified yet powerful technology.

No company can afford to send their staff members to the four corners of the globe to reach all possible markets, but modern technology now provides the tools to create the same effect with far less effort. With web-conferences, you can talk to your customers regardless of whether they are next door or in the next continent, and you can deliver a broad spectrum of material through this medium directly from your screen to theirs, whether it’s a PowerPoint presentation, a video highlighting your services, skills, and value proposal, or even a livestreamed tour of your facilities. The power of video conferencing allows you to be in the room with your prospects and customers no matter where you are in the world. Having the ability to scale your business allows you to reach new markets without having to over-stretch your payroll, and minimises the cost of travel at the same time.

While high-speed web technology is the superior weaponry of the logistics business, the same can also be said for training your own army.

With the power of the web, you no longer need to assemble your staff in a central location, which inevitably drains valuable time and productivity.

Whether you have staff in offices overseas or working remotely from home, e-learning enables you to train your team with the minimum of inconvenience, and at a significantly reduced cost. Software companies may be driving this approach, but the industry itself finds ways to educate staff in new processes and procedures, from how to use new software or effectively load a container, to how to comply with the latest changes in Customs regulation. e-learning is the fast and direct way to educate anybody to do anything. Simply type “How do I….” into YouTube and see the multitude of videos dedicated to showing people how to do something new.

Now that your staff is equipped and trained, scalability becomes the most important factor to consider when looking to grow your company.

Gaining a victory here means expanding as fast as possible, all while minimising capital expenditure, head count, and risk to your business. (Perhaps not logisticsmagazine.com.au

as difficult as conquering the globe, but close.)

Training staff via e-learning is the first element in minimising costs, but once they have the skills, what tools and strategies can you provide to make sure they bring the biggest success possible and contribute to business expansion? To use the world domination metaphor, Spanish soldiers knew how to use and attack with their guns and steel, rather than just simply owning the guns. Because the Aztecs fought 100% of the time, it could be said the Spanish were the more productive company in the end, despite the smaller workforce.

You should look to utilise everything at your disposal to ensure your staff work smarter, not harder. Your software – whether that’s your email client, CRM, or freight software – should help you automate your business and remove

the manual task burdens that prevent quick and efficient business. Let your highly skilled staff play the highly skilled roles, and let the computer complete the extra work in between, such as automating emails and updating Track and Trace data. Allow your software to guide your staff to what tasks come next, so the high priority items rapidly rise up the task list. Ultimately, you will provide your current clients with the high quality service and experience they have come to expect, which sets the standard of excellence that attracts new clients as your business naturally scales from there.

Be smart, train smart, and use the best tools, and you really can conquer the world with a small army.

August/September 2016 Logistics&MaterialsHandling | 15

Innovation in Logistics

How complex is the process of supplying electronics?

Most consumers don’t know how to open up their smartphones, much less what’s inside. Believe it or not, even phone makers can’t account for the origins of every ingredient.

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ehind the glossy surface are dozens of minerals, processed in hundreds of factories, touched by thousands of hands. However, one Dutch electronics startup has made an attempt to create an “ethically made” smartphone: the Fairphone.

The $580 Android-powered Fairphone 2 has responsibly sourced materials and labour, and a design that makes it both consumer and earth friendly. It isn’t for everybody, but it can teach us all the real costs of the little black boxes in our pockets.

There isn’t a single clear villain. There are too many people involved, a global supply chain full of complicated relationships and trade secrets.

For every Apple or Samsung, there are thousands of companies under less scrutiny from regulators and journalists. All of which are getting rich in the smartphone boom.

Take gold, which smartphones need for connectors. It fuels violent rebels in the Congo, and it is now a more valuable illegal export than cocaine in Colombia and Peru. Slavery is part of the supply chain: forced workers make up a third of the migrants in Malaysia’s electronics industry, a U.S.funded 2014 survey found.

For consumers, there’s more than a guilty conscience at stake. Most phones are designed to look good, but they cost a lot to repair. And if you just want to upgrade your camera, you need to buy a whole new phone.

Fairphone’s purpose is to be open. To drive home the point, the phone’s translucent back cover lets you see the circuits inside.

Founder Bas van Abel and his colleagues create longer-lasting modular cellphone designs, source at fair-trade mines and look for new ways to work with factories in China. They post blogs and videos about their successes and failures at changing the way phones get made.

“We haven’t created the 100 per cent fair phone,” Van Abel said. “We are showing through our own supply chain what’s wrong with the supply chain.”

16 | Logistics&MaterialsHandling August/September 2016

Fairphone, which started in 2010 as an awareness campaign over conflict minerals, is “a model for what can be done,” said Shawn MacDonald, chief executive of labor consultancy Verité, which conducted the Malaysian labour study. “Obviously, they still have to show that it can work,” he added.

Fairphone’s tiny scale, and some of its efforts, put it at a disadvantage in the marketplace. The Fairphone 2 costs almost as much as the iPhone 6s and Galaxy S7, but it isn’t as fast or as sleek. It is currently sold only in Europe.

It starts with materials. About 40 minerals go into a phone, but four in particular are precious and found in mines in war-torn regions—tin, tungsten, tantalum and gold. Starting last year, the US Dodd-Frank Act has required public companies to disclose whether any of their products containing these minerals were funding the surrounding areas. But Dodd-Frank doesn’t actually require minerals be conflict-free.

Many companies have struggled with the disclosure requirement. Apple says 100 per cent of its smelters and refiners are now subject to third-party audits, up from 44 per cent in 2013.

Samsung says third-party auditing of its mineral handlers will soon reach 90 per cent.

Just because a firm is audited doesn’t make it automatically virtuous. Apple is investigating allegations of gold smuggling associated with armed groups while working with other industries to encourage responsible mining.

Fairphone, too small to efficiently run its own factory, found a Singaporean manufacturer called Hi-P with a factory in Suzhou, China, willing to work with it. The approximately 100 workers on the Fairphone line aren’t paid more than others— up to 4,000 yuan (AU$600) a month—but Fairphone has a representative based at the factory most of the year to make sure workers aren’t taken advantage of. The startup is setting aside money in a “welfare fund” that workers could collectively decide how to spend.

On a recent Monday, employees at the Suzhou factory told my colleague they work 10-hour days, usually sitting down, snapping and screwing together about 600 phones. One woman repeatedly takes selfies to test the front-facing camera.

“The company is more humane,” said Hi-P employee Du Juan, 35 years old. They even host cake-eating competitions on birthdays, she said.

Her biggest complaint is there aren’t enough choices in the cafeteria.

“If they were here working until nine, I would know,” said Mulan Mu, the Fairphone rep.

Still Fairphone hasn’t always been able to hold to its goal of a 60-hour workweek. It struggles to keep shady workforce brokers at bay and to accurately forecast demand, so that Hi-P doesn’t have to hire temporary workers. And some employees want to work more hours to earn overtime pay.

Thanks to recent anti-slavery laws in California and the U.K. requiring companies to disclose what they are doing to address the problem in their supply chains, consumers and investors are starting to get more insight into larger companies’ labour practices.

The nonprofit Know The Chain published a study in June rating electronics companies on how well they institute policies and practices to root out forced labor from suppliers. Apple came out near the top, and Samsung near the middle. Yet a leading Apple supplier, Foxconn, landed because it discloses so little. Fairphone wasn’t rated.

“We hold ourselves and our suppliers to the highest standards,” said a Samsung spokeswoman. “We continuously assess and improve operations and facilities throughout our supply chain.”

A Foxconn spokeswoman said it has conducted its own audits of 448 suppliers and found “no severe breaches” of its code of conduct, including forced labour. The company said it would consider additional measures after reviewing the Know the Chain report. logisticsmagazine.com.au

Jobs & Employment

Transportation & warehouse hiring up in June Companies added 13,000 jobs and growth in trucking accelerated as logistics operators ramped up after a slow first quarter

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he latest jobs report shows employment in logistics-related businesses is gaining momentum as international trade grows and retailers show greater confidence that American consumers will pull out their wallets.

Nonfarm payrolls overall rose by a seasonally adjusted 280,000 in May, and the jobless rate ticked up slightly, to 5.5 per cent, as more Americans went back into the labor market.

The expansion was led by big jobs gains in professional and business services, leisure and hospitality and health care.

The transportation and warehousing sector added 13,000 jobs in the month, led by nearly 9,000 new jobs in the trucking industry. Job growth in transportation and warehousing has accelerated since March, when the industries added just 1,900 jobs. Workers are working longer hours, as well, with average weekly hours rising from 38.6 in May of 2014 to 39.1 earlier this year.

Logistics industries that heavily support e-commerce continued to grow last month as an

18 | Logistics&MaterialsHandling August/September 2016

increasing number of consumers shop online.

Warehousing and storage companies added 2,600 jobs for a total of 48,100 over the last year. Courier and messenger firms increased payroll by 1,800, for a total of 18,600 over the last year.

The overall logistics and transportation sector added 11,700 jobs for the month, led by an additional 4.400 jobs in passenger transportation.

Analysts said there is some stabilization in the trucking market, which had struggled with overcapacity in recent months as weak manufacturing activity, modest growth in consumer spending and high inventory levels dampened shipping demand.

Recent reports on trucking volume and pricing suggest demand is recovering this summer. Jason Seidl, an investment analyst at Cowan & Co., wrote in a research report Friday that one carrier executive at a meeting this week “went as far to say that there ‘was enough freight to go around for everyone.”

The gains come amid robust growth in the overall labor market, which added 255,000 jobs

to nonfarm payrolls in July, the best two-month stretch of hiring so far this year.

Good-producing industries accelerated their growth, adding 16,000 jobs after growing by 5,000 jobs in June, according to adjusted numbers.

Manufacturers added 9,000 jobs last month after adding 15,000 in June.

The Institute of Supply Management said its manufacturing activity index declined to 52.6 in July from 53.2 in June, meaning U.S. factories are growing, albeit at a relatively slow rate, as exporters continue to have a hard time because of the strong dollar.

Most job gains continue to be in the service sector, which has less upside for freight transportation. Professional and technical services added 37,000 jobs, and healthcare added 48,000.

“Two months of very modest growth in manufacturing jobs is certainly better than negative territory, where we’ve been much of the past year,” said Scott Paul, president of the Alliance for American Manufacturing, in a statement.

logisticsmagazine.com.au

Retail Logistics

Wavelink and Honeywell partner to deliver mobile solution for retail and logistics

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avelink and Honeywell have this week set out on a five city roadshow across Australia and New Zealand to showcase their joint offering which takes advantage of the growing presence of the Android operating system.

Wavelink’s enterprise mobility management, host-connectivity applications and voiceenablement solutions enable users to connect mobile devices to supply chain management systems.

It’s support for Honeywell’s Android-based mobile devices will enable the two companies to support organisations looking to modernise their operations.

The cost and complexity today of rolling out new devices at the same time as undertaking significant work on back-end systems is daunting for most retailers and logistics companies.

Such major shifts can cause disruption to supply chains and result in an inability to meet customer needs. Rather than embarking on such broad-scale changes, many retailers and logistics

firms are leaving their back-end systems in place and looking for a solution to enhance the user experience on their mobile devices.

As well as improving the service experience for customers, modernising existing systems on Honeywell Android-enabled devices provided to retail associates enables other significant benefits.

An intuitive touch based interface significantly reduces training time, allowing new staff to become productive much more quickly. This can be particularly important during peak shopping periods when large numbers of casual staff need to be brought up to speed as swiftly as possible.

At the same time, IT teams no longer have to worry about making complex, expensive, and time-consuming changes to back-end systems.

All devices are provided with the same data as they have always been with changes only taking place within the mobile application interface itself. This allows a single management platform to be used to control devices across all locations, reducing the load on IT staff. Overall, application and management silos can be reduced, further

removing complexity and expense for the retailer.

Simon Storey, Country Manager -Australia and New Zealand, Wavelink, said, “By partnering with Honeywell we are adding a new touchbased application interface. Information can be displayed and commands entered in an intuitive manner. Users no longer have to deal with complex green screen applications or understand strange abbreviations. Instead, they can interact with their device in the same way as they do with their personal smartphone or tablet.

“Our partnership with Honeywell also gives retailers and logistics companies a choice to modernise their business applications while retaining their investment in existing systems.

Retailers will be able to improve their service levels and maximise their chances of securing long-term revenue growth.”

The Wavelink, Honeywell partner roadshow across Australia and New Zealand showcase the new offering to their joint community of resellers and consultant service providers in Auckland, Brisbane, Melbourne, Perth and Sydney.

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02:58:04 PM August/September 2016 Logistics&2016/07/21 MaterialsHandling | 19

Packaging & Labelling

Adhesives for difficult labelling issues Self-adhesive specialist HERMA, a company which knows how to handle difficult labelling issues, has launched two innovative new products.

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he first offering, HERMAsuperTack (63Vst) is a completely resin-free adhesive for labels that require extremely strong initial tack.

Since migration is determined by the adhesive’s resin content, the new HERMAsuperTack (63Vst) offers especially low migration levels. It features correction factor 2, and reaches the approval for dry, moist and fatty foods.

“Thereby, we are coming closer than ever to the zero migration benchmark,” said Dr Ulli Nägele, the company’s Head of Research and Development.

Because of this and its excellent initial tack, the product is ideally suited for labels that are applied to whole sausages or raw ham without a barrier layer made of film. Since adhesives owe most of their good adhesive properties to resins, it had been nearly impossible to dispense with them up until now.

“The lower the resin content, the lower initial tack and final adhesion, especially on films,” explained Nägele. “But by applying our multi-layer technology, we were able to develop an adhesive that does enable us to dispense with resins – without any compromises.”

While its excellent initial tack means HERMAsuperTack is ideally suited to problem-solving when it comes to films and

20 | Logistics&MaterialsHandling August/September 2016

moist, fatty, or slightly dirty surfaces, its range extends well beyond food labelling.

It makes the most of its advantages at near-freezing temperatures combined with condensation.

“The adhesive received top marks in tests at 0°C and +2°C on polar and non-polar surfaces,” said Nägele. “Even at temperatures below minus twenty degrees, it does not lose its tack.”

But that’s not all: due to its temperature resistance, the adhesive is also suitable for foodstuffs that have been recently heated, such as boiled chicken.

Universal use The other new product, HERMAsuperPerm (63S) ensures that labels cannot be removed, even from lacquered cardboard, plastics or steel. As such, it allows users to economically equip packages with tamper-evident labels.

Such tamper-proof features are mandatory for prescription drugs in many countries.

Its final adhesion is so high that sealing labels equipped with the adhesive cannot be removed from lacquered packaging as well as many other polar and non-polar surfaces, such as cardboard, or plastics and steel without destruction of the label or the packaging surface. Elaborate and costly special materials like self-destructive films, holograms, cellophane wraps, or even completely new

folding box designs are thus no longer required.

Besides being extremely age-resistant, HERMA superPerm 63S is highly resistant to water, hot air, and various solvents. Since it is a dispersion adhesive, adhesive materials can be easily processed in spite of relatively thick adhesive coating.

Tamper-evident labels A number of reasons can be argued for the use of sealing labels to ensure a first-opening guarantee.

“Labels on pharmaceutical packaging are, as a matter of principle, accepted in the market.

Moreover, they do not change the established appearance of existing packages,” explained Nägele. “Folding boxes and folding box machines that have already been validated can continue to be used.”

The application process for the labels, which have an essentially conventional design, is technically uncomplicated.

“The main reason against using conventional, economic labels for reliable tamper-proofing was the fact that they are removable.

This has been invalidated through HERMAsuperPerm 63S,” Nägele added. logisticsmagazine.com.au

Packaging & Labelling

Plastics tick food safety boxes The high safety demands faced by food processors and packagers are driving demand for advanced engineering plastics that can withstand the demands of the latest cleaning and hygiene systems.

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lean in Place (CIP) systems, enzyme systems and aseptic packaging are important areas where such plastics can offer high performance in terms of resistance to temperatures, radiation, chemicals and water.

Efficient food packaging equipment no longer has to be disassembled for cleaning, being fitted instead with a built-in “flush” (or CIP Clean in Place) system, says Pat Flood, NSW Manager of the national and international engineered plastics specialist Cut To Size Plastics.

Acid-based cleaning solutions are automatically routed through CIP machines’ plumbing so the tear-down and set-up cycles that previously took many hours can be reduced to a matter of minutes.

Better hygiene and equipment utilisation outcomes are also produced by advanced agribusiness systems where enzymes are used for cleaning tanks and equipment such as ultrafiltration membranes or heat exchangers in the dairy industry, for example.

“Both CIP and enzyme systems make demands on the materials with which they come in contact. CIP systems are generally acid-based or, more commonly, chlorine-based. Depending upon the concentration, these cleaners can be

logisticsmagazine.com.au

moderately to extremely caustic. Plastics such as the Wearlyte PET (polyethylene terephthalate) are highly resistant to acid and chlorine. At the same time, its non-porous surface resists staining, clearly outperforming widely used alternatives,” said Flood.

Wearlyte PET’s dimensional stability, excellent wear resistance, high strength and its ability to be used continuously at higher temperatures also make it an ideal candidate for replacing stainless steel components. For example, coupled with its stiffness and ease of fabrication, Wearlyte is commonly used in food presses. Here too, the material resists the highly-chlorinated sanitising solutions.

Packaging For packaging food in plastic containers under sterile, or aseptic, conditions, a variety of engineering plastics can be selected to operate in the higher operating temperatures required to kill bacteria. Under these conditions, traditional materials like polyethylene may not provide adequate physical strength, says Flood. Cut to Size products such as PEEK (Polyether ether ketone) High Temperature, on the other hand, retains their high mechanical and impact strength,

stiffness and dimensional stability at elevated temperatures. This is one of the few plastics compatible with ultra-high vacuum applications.

In addition, PEEK thermoplastics offer an excellent wear resistance over a wide range of working conditions. As a result, for example, distribution valves made of such materials are increasingly replacing stainless steel parts, which cause valve housings to wear easily and result in high maintenance costs.

Materials such as Wearlyte PET are also preferred over stainless steel in order to minimise wear of the expensive mating part in vacuum shoes on high-speed, high-volume food packaging lines.

Cut To Size’s general-purpose Wearace grade, meanwhile, is especially suited to create durable wear components because of its excellent versatility, dimensional stability and good wear properties. Easier to machine than stainless steel, Wearace is a superior material because of its limited expansion and low moisture absorption during process and cleaning applications.

Cut to Size Plastics manufactures components for applications across Australasia and the AsiaPacific from its Head Office in Sydney, where facilities include CNC machining facilities coupled with GibbsCAM and Solidworks software.

August/September 2016 Logistics&MaterialsHandling | 21

Products Fleet productivity RungePincockMinarco Limited has announced the release of TALPAC 11. With this release, TALPAC, offers innovative and dynamic user interface enhancements as well as an expansion of its equipment library.

Simulation Solutions Product Manager, Adam Price said, “This latest release of TALPAC with its enhanced user interface environment and expanded equipment database will help our users achieve the next level of productivity needed.”

Designed specifically to meet the needs of the mining industry, RPM said TALPAC is the industry’s go-to haulage and loading stimulation solution improving fleet productivity.

Price continued, “With mine productivity and efficiency at the forefront of mining agendas,

TALPAC is the go-to tool for simulating truck and loader haulage systems.”

With this release, TALPAC retains its reputation of having the industry’s largest and most comprehensive equipment database.

TALPAC allows users to experiment with its equipment database to investigate multiple fleet options to optimise productivity.

In doing so, users are reducing risk and uncertainty and improving overall outcomes at their operations.

Price concluded, “TALPAC is key for evaluating the efficiency, productivity and economics of mining fleet. With this release, TALPAC 11 takes truck and loader simulation outcomes to the next level.”

RungePincockMinarco www.rpmglobal.com

Engineering and manufacturing supply chain software Aspen Technology has announced the release of aspenONE Engineering and Manufacturing and Supply Chain V9 software. According to the company, this latest release gives businesses in the oil, gas, refining, mining, chemicals, engineering and construction, and other process industries, insights into their processes to help them reduce OPEX and CAPEX costs. Furthermore, innovations in the software will empower user to design and troubleshoot with confidence, improve reliability by enabling greater insights into process constraints, on-board new users faster, and make process safety consistent and continuous throughout the entire asset lifecycle, according to the company.

Aspen Technology www.aspentech.com

Flexco launches belt trainer for conveyor tracking Flexco has released the PTEZ Belt Trainer tracking idler for its line of belt trainers. Designed with the company’s “Pivot and Tilt” feature, it can be used in any application that requires tracking to prevent damage to the belt or conveyor structure, including single-direction and reversing belts.

The Pivot and Tilt feature ensures that the belt stays away from the structure and the material stays on the belt without the use of sensor or edge rollers.

The tapered ends on the roller drive the pivot and tilt mechanism, allowing the two forces to quickly move the belt back to centre.

The belt trainer can be used on vulcanised or 22 | Logistics&MaterialsHandling August/September 2016

mechanically fastened belts in almost any medium-duty application, including wet and dry conditions, belts with edge damage or wear, and belts that are mistracking to one or both sides.

Available for belt widths between 450mm to 1200 mm, the belt trainer can be mounted as a standard “pull-up” mounting or on the clean side of the return side of a cupped belt. The adjustable mounting brackets ensure quick and accurate installation. The belt trainer also features a polyurethane roller cover, which ensures a lasting performance in even in tough conditions.

Flexco www.flexco.com.au/ logisticsmagazine.com.au

Technology

Tracking travel Technology is not just changing the way miners work on the front lines, but the way they actually go to remote mines.

D

espite the downturn, mining is pushing ahead, making major strides forward in terms of productivity.

However, it’s not just the machinery that is seeing this change, it’s occurring right across the board, and technology is even driving travel improvements in mining.

“Miners have some of the most complex travel requirements of any industry in the world,” Carl Jones, head of Energy, Mining & Marine, American Express Global Business Travel, said.

Every week, Australian mining companies co-ordinate the movement of thousands of fly-in fly-out (FIFO) workers across the vast Australian continent.

Travel schedules are incredibly demanding for FIFO workers who will travel anywhere from between eight to 24 hours, including multiple transfers, both interstate and even international, just to get to site.

“Fortunately, technological innovation is improving the travel commute for FIFO workers, making them safer on the road and driving down costs for mining companies. One example of this is our Passenger Name Record Automation Manager (PAM), propriety technology we have developed which has changed how travel to mining sites is booked,” Jones said.

The PAM program is a travel booking tool which integrates with the needs of both commercial and private travel operators and

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allows for automation of the travel booking requirements for FIFO workers.

“Where it previously took two to three weeks to manually book travel itineraries for over 2000 workers, this can now be processed in two to three hours,” Jones said.

“The bulk-booking capabilities of PAM is delivering significant savings in time and resources. Some mining companies’ report that 98 per cent of bookings are now devoid of human interaction, reducing the overall time needed to book flights for employees by up to 70 per cent.”

Better travel for FIFO workers According to Jones, the program helps avoid missed connections, and aids in decreasing overall travel time for workers.

“For every hour spent on the road, FIFO workers could be spending valuable time with their families and that’s why PAM has been built in such a way as to always find the fastest route to and from mine sites. Because of this, we have seen many examples of FIFO workers experiencing faster commute times than when travel was previously booked manually.

“Furthermore, when a travel plan is booked using PAM, the functionality is such that a full itinerary can be produced outlining all details of the journey, including, public and private travel as well as where employees will be accommodated when they arrive on site.

Previously, FIFO workers would have needed to receive this information from multiple sources.”

The new technology is also aiding mining companies in addressing duty of care issues.

The improvements are allowing companies to monitor the whereabouts of employees travelling for work with pinpoint accuracy in ways that have never previously been possible.

For companies who are managing a highly mobile, dispersed workforce operating in remote locations, this offers real peace of mind when considering the safety and security of their employees in crisis situations.

“For example, using our travel disruption solution, EXPERT CARE, the precise location of workers during an environmental catastrophe can be obtained instantly so that evacuation can proceed unhindered,” Jones said., The technology doesn’t just track a FIFO worker to their last transit airport but will instead indicate if they are on route to or from the mine site, or if they are onsite.

“This complete end-to-end, real-time visibility of workers is so important when a mine evacuation is required. In a recent example, when extreme flooding affected North Western Australia in February this year, one of our clients was able to see exactly where all workers were on their journey to and from their mining sites.

This meant they could arrange evacuations quickly and simply.”

August/September 2016 Logistics&MaterialsHandling | 23

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