MHD Feb 2020

FEBRUARY 2020

COVER STORY

CELEBRATING THE PAST MOVING THE FUTURE CROWN EQUIPMENT’S 75TH ANNIVERSARY

A WORLD FIRST

Galipo Foods in AMR project

2020: THE YEAR OF AUTOMATION Forklift trends and opportunities

TRENDING:

Automating Cold Storage Cohesio Group delivers world-first AMR solution for Galipo Foods AMRs are currently trending to rapidly expedite sorting, moving and put-to-pallet workflows in 3PL, Refrigerated environments, Retail, eCommerce, Pharma and more. Check out the feature in this issue of MHD. Cohesio Group belongs to the Business Unit Software and is part of the Business Area Logistics Systems belonging to the international technology group Kรถrber: koerber-logistics.com/en E: info@cohesiogroup.com P: AU 1300 66 93 94

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MHD FROM THE EDITOR

MHD Supply Chain Solutions CONTACT MHD Supply Chain Solutions is published by Prime Creative Media 11-15 Buckhurst Street, South Melbourne VIC 3205 Telephone: (+61) 03 9690 8766 Website: www.primecreativemedia.com.au

THE TEAM CEO: John Murphy Publisher: Christine Clancy Group Managing Editor: Sarah Baker Editor: Melanie Stark Journalist: Brittany Coles Business Development Manager: Bowie Phillips Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Kerry Pert, Madeline McCarty Client Success Manager: Janine Clements

FOR ADVERTISING OPTIONS Contact: Bowie Phillips bowie.phillips@primecreative.com.au

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ACKNOWLEDGEMENT MHD Supply Chain Solutions magazine is recognised by the Australian Supply Chain Institute, the Chartered Institute of Logistics and Transport Australia, the Supply Chain and Logistics Association of Australia and the Singapore Logistics and Supply Chain Management Society.

STRIVING FOR GREATNESS

T

he logistics world is a tough one, operating in some of the tightest margins alongside some of the most demanding service level agreements and customers, the art of continuous improvement plays a crucial role in this sector.

Whether a logistics operator or supplier wants to cut costs, lower employee turnover, be more competitive, improve customer service or raise productivity and efficiency – a common way to get there is by using the principles of continuous improvement.

Continuous improvement, or Kaizen, is a method for identifying opportunities for streamlining work and reducing waste. The practice was formalised by the popularity of lean and agile operations in manufacturing and business and is now being used by thousands of companies all over the world to identify opportunities to do things better and save costs.

The method of continuously perfecting operations has become imperative in an industry as fast paced as logistics and gives organisations a framework to constantly strive for the next level of excellence.

One common way to explore how your business can better improve is to benchmark and share information. The MHD Forklift Survey is now live again, this bi-annual survey is an important facilitator of practical information between those who invest in and use the materials handling equipment and the suppliers of this equipment.

Usage and purchasing patterns allow suppliers to fine tune their machines, services and supply options – which enables those in the logistics industry to work on continuously improving your operations with the very best in forklift equipment.

I am encouraging you to engage with this year’s survey, and to share with your suppliers what you need from them to ensure that you can operate as efficiently and productively as possible. There is also a prize up for grabs for completing this year’s survey for sharing your valued opinions.

To find out more and to fill out the survey, visit: http://mhdsupplychain.com.au/ forklift-survey/.

ARTICLES All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

COPYRIGHT MHD magazine is owned by Prime Creative Media.

All material in MHD is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material.

While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in MHD are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

Melanie Stark Editor melanie.stark@primecreative.com.au

MHD Supply Chain

MHD FEBRUARY 2020 | 3

FEBRUARY 2020

ISSUE #1 VOLUME 50

THIS ISSUE COVER STORY

COVER STORY

16 Celebrating 75 years of innovation

EVENTS 12 VTA commits to MEGATRANS2020

MATERIALS HANDLING 28 How to effectively fulfil online orders 32 Durability drives purchase 34 Maximising warehouse footprint 36 A local leader 40 Trendsetter 50 2020 – The year of automation 52 Exploring refinements to improve efficiencies

16

SUPPLY CHAIN 21 The future for 3PL providers 38 Technology to empower service 42 2020 set to be the year of compliance

TECHNOLOGY 24 Ahead of the curve 46 Getting onboard with real-time data 48 Evolution in scanning 58 Industry 4.0 ready

E-COMMERCE FEBRUARY 2020

COVER STORY

CELEBRATING THE PAST MOVING THE FUTURE

34

CROWN EQUIPMENT’S 75TH ANNIVERSARY.

A WORLD FIRST

Galipo Foods in AMR project

2020: THE YEAR OF AUTOMATION Forklift trends and opportunities

05 E-commerce fuels positive outlook 44 The rise of click and collect

DEPARTMENTS AND REGULARS 6 News 56 Product showcase 60 Women in industry 62 Property focus 64 The last word 66 ALC 68 ASCI 70 From the SCLAA

ON THE COVER Crown Equipment celebrates its 75th anniversary. MHD chats with senior execs in the Asia Pacific region to find out more.

32 MHD FEBRUARY 2020 | 5

MHD NEWS

VISA implements new WMS to meet customer demands

Six of VISA’s sites currently use the Manhattan system.

D

ue to increased demand from their customers to be more flexible and improve the speed of delivery, VISA Global Logistics is deploying a new Warehouse Management System. The privately-owned international freight forwarding company has started operating the Manhattan Active SCALE solution in New South Wales.

VISA Global Logistics national manager Amira Amin said the

transition of the Manhattan solution into its full network of distribution centres across Australia and New Zealand has been successful.

Six Australian VISA Global Logistics sites currently use the Manhattan system, with their first international facility in Auckland, New Zealand preparing to introduce the solution at the end of January.

“I think is going to be an absolute showstopper for Visa global,” Amira said.

Manhattan’s solution will allow VISA Global Logistics to provide its customers with improved real-time inventory visibility and transparency throughout its supply chain.

VISA Global Logistics National warehouse manager Tony Baxter said there is an increased customer demand for live and valid accurate data in the fast-moving consumer goods (FMCG) sector.

“SCALE gives our customers a dashboard of their KPIs and access to all of their relevant information in a user-friendly platform,” Tony said.

“A big benefit for us is that Manhattan’s solution will allow for

onboarding customers much faster, taking only three hours, while the legacy system could take up to 30 days.”

VISA Global Logistics NSW warehouse manager Sam Galloway said they’ve spent three to four months working with Manhattan to design and build the process of the system.

“We’ve put in a lot of details because we realised that the more we spent on the build, the more we can tailor our warehouses to be revolved around the one system,” Sam said.

“The Manhattan scale fits into our daily operation as a 3PL warehousing business.”

Managing director of Australia and New Zealand for Manhattan Associates Raghav Sibal said the Manhattan Active SCALE solution will offer VISA Global Logistics the flexibility and scalability needed to support the company’s growth.

“Our fully managed cloud solution will also help them improve their overall customer experience and get goods to consumers faster,” Raghav said.

Fulfilment volumes up 319 per cent

I

ncreased sales growth due to Black Friday and Cyber Monday promotions has boosted the Australian retail sector. Sales in November set turnover to a record $27.9 billion, with a growth rate of 3.3 per cent, the fastest increase the sector has had in 13 months. eStore logistics data reported that fulfilment volumes were up 319 per cent on average 2019 volumes and up 59 per cent compared to black Friday last year.

The balance on goods and services in November 2019 increased by $1.7 million on the surplus in October 2019, according to figures released by the 6 | MHD FEBRUARY 2020

Australian Bureau of Statistics last week.

The November bounce set turnover sales to a record $27.9 billion and at a growth of 3.3 per cent it’s the fastest increase the sector has had in 13 months. eStore logistics founder and managing director Leigh Williams said their customer self-service portal allows realtime tracking of orders, resulting in a more streamlined process.

“This year we shipped over 99.5% per cent of orders within one business day during the sales period,” Leigh said. eStore utilise the Manhattan Associates tier one warehouse

management system (WMS) SCALE, which calculates the most suitable and cheapest carrier to send to client orders.

“Using eStore’s freight optimisation software they have been able to enjoy double digit freight savings during this peak period,” Leigh said.

Sales throughout the month of November increased by 0.9 per cent which was more than double the 0.4 per cent expected by economists.

According to data released by Australia Post, more than 2.5 million parcels were delivered following the click frenzy of Black Friday and Cyber Monday – up by 12 per cent on last year’s effort.

Want industry leading forklift driver training?

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No wonder we’ve long been the registered training organisation (RTO) the industry turns to first. Expert specialist training is available either at your premises nationwide or at our state-of-the-art Sydney facility. For licensing, safety awareness, refresher courses and more - for your drivers and trainers, count on Crown.

Call 1300 283 390 or visit crown.com

WHILE OTHERS SLEEP, WE WORK. Virtually anywhere in the world and everywhere you look, you can see Manhattan Associates supply chain and omnichannel solutions in action. Over 13 million kilometers across four oceans and six continents, we enable, enhance and expand commerce across the globe. How can we help you push possible?

Visit manh.com.au or contact us at anzinfo@manh.com or (02) 9454 5400.

MANHATTAN ACTIVE

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Our technology connects two billion people to 20 BILLION CONSUMER CHOICES. It moves 150,000 PAIRS OF SHOES every hour.

300,000 TONS OF FOOD every day.

And $101 BILLION IN RETAIL PHARMACEUTICALS to help people stay healthy.

SUPPLY CHAIN

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OMNI

MANHATTAN ACTIVE

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INVENTORY

MHD NEWS

Queensland revealed as highest growth state for warehousing and logistics

Q

ueensland’s online retail demand will continue to drive requirements across the market in 2020, where ecommerce logistics, distribution and warehousing has shown a growth of 5.2 per cent annually, which was the highest of any state nationally.

According to Savills Australia, major project and infrastructure completions in Queensland have helped stimulate economic progression, industrial investment demand, and leasing take up.

Queensland’s online retail demand will continue to drive requirements across the market, where ecommerce

logistics, distribution and warehousing has shown a growth of 5.2% annually, which was the highest of any state nationally.

Callum Stenson, State Director of Industrial & Logistics at Savills Australia, noted that a positive spillover effect into Brisbane’s industrial markets was imminent.

“Investors are searching the market for quality investments and after a strong flurry at the start of the year, which saw some major transactions in Brisbane, the paucity of stock has stifled these major transactions,” Callum said.

Queensland online retail demand will continue to drive requirements across the market.

Coles takes next step in digital transformation

C

oles has taken the next step in its ongoing digital transformation strategy, adopting global supply chain management and core finance and procurement platforms to improve product availability while enabling efficiencies in supply chain to support its Smarter Selling strategy.

Coles Group has successfully migrated its legacy core finance system to the SAP S/4HANA platform, improving the speed and stability of Coles’ financial systems. This has also enabled the deployment of the SAP Ariba procurement solution.

The combination of SAP Ariba and S/4HANA will enable significant cost savings in procurement by centralising management of purchasing for goods not for resale, allowing for consolidation of suppliers and improved trading terms.

Coles Chief Financial Officer Leah Weckert said the implementation

of the two SAP platforms was an important milestone in the continued modernisation of Coles’ systems, which would enable the delivery of future transformation projects and support ongoing improvement in business processes.

“We had a very ambitious fivemonth timeline to implement SAP S/4HANA and we adopted a very innovative implementation approach with specialist partner Acclimation, utilising a toolset from SNP. This was a remarkable collaboration between the finance and technology teams,” she said.

“SAP Ariba was also implemented at pace and is fundamentally changing how Coles purchases goods not for resale right across the business. It’s a foundational part of our Smarter Selling strategy.”

Coles Executive General Manager Operations and Transformation Kevin Gunn said new platform

would enable real time visibility of international stock.

“Availability is a key issue for customers and some popular items, such as light globes, herbs and spices and kitchen essentials like foil and garbage bags, cannot be sourced domestically so we need to look to international suppliers,” he said.

“By understanding where our stock is while in transit, we can better plan our stock movements to enhance availability for customers and reduce the time taken to move products into our stores, improving our use of working capital by reducing the time inventory spends in our supply chain.

“It will also support improved efficiencies through the supply chain by minimising the need to move stock between states, resulting in fewer truck movements which will also improve road safety and reduce carbon emissions.”

MHD FEBRUARY 2020 | 9

MHD NEWS

CMA CGM to restructure senior management team at CEVA Logistics

O

ne year after the launch of the tender offer on CEVA Logistics, CMA CGM Group is restructuring the organisation.

This includes the exit of current CEO Nicolas Sartini, after less than one year in the role.

After an initial transitional phase of reorganisation, which made it possible to deploy new processes and define an ambitious strategy for a return to profitability, CEVA Logistics is implementing its second phase of development.

This business plan is based on several strategic axes: development of new products, development of the network in Africa and South-

East Asia, digitalisation plan, investment in IT tools particularly in Freight Management.

In order to accompany this second phase of its development, CEVA Logistics is restructuring the organisation with the following roles: • Mathieu Friedberg is appointed CEO. He was Senior Vice President Commercial and Agencies network of the CMA CGM Group. Previously CEO of Delmas and CMA CGM Logistics, the logistics entity of the CMA CGM Group before the acquisition of CEVA Logistics.

• Guillaume Col is appointed Chief Operating Officer. He was previously General Manager for France and

North Africa at Kuehne Nagel.

• M ichel Foulon is appointed Chief Information Officer. He previously held the same position at CMA CGM. • Frédéric Obala takes on the newly created position of Director of Transformation and Digital. He has extensive experience in B2C and B2B functions in the retail, technology and media sectors.

• Gaultier de La Rochebrochard is appointed General Counsel.

He held the same position in several multinational companies including GL Events and Norbert Dentressangle groups.

• Nicolas Sartini, current CEO, is leaving CEVA Logistics.

The Iconic expands fulfilment centre in Sydney

Erica Berchtold, CEO (left) and Anna Lee, COO at The Iconic.

T

he Iconic has announced the opening of its 8,000sqm expanded Fulfilment Centre, known as Yennora 2. The site, which is located adjacent to its current fulfilment space in South West Sydney, increases the retailer’s inventory capacity by 1.55

10 | MHD FEBRUARY 2020

million units, to an overall capacity of over 3.75 million units, cementing it as the largest online fashion Fulfilment Centre in the country with one of the largest mezzanines and pick towers in the Southern Hemisphere.

After the opening of the expansion,

THE ICONIC’s Fulfilment Centre space will span a 28,000sqm footprint with 46,000sqm fulfilment space. The Yennora 2 expansion offers an additional 8,000sqm across two levels, with an additional 20km of shelving across 130,000 unique locations.

“We have had an absolutely incredible year at The Iconic – from the launch of The Iconic Considered, releasing our inaugural Annual Progress Report, to hosting our first Brand Partner conference and celebrating summer at our most inclusive runway yet. I couldn’t think of a better way to welcome 2020 than by announcing the expansion of our Yennora Fulfilment Centre. This expansion has been an incredible two-year process and I’m so proud of our team and partners for building the best retail operations centre across Australia and New Zealand. The Iconic is the future of retail and we can’t wait to start the New Year with a bang,” Erica Berchtold, Chief Executive Officer, The Iconic said.

EFFICIENT GOODS-TO-PERSON PICKING Goods to Person order picking systems provide high productivity and space efficiency.

Flexible warehouse management software gives you visibility of performance, and puts you in control. ssi-schaefer.com

MHD EVENTS

VTA COMMITS TO MEGATRANS2020 T

he Victorian Transport Association (VTA) has signed up as an association partner for MEGATRANS2020. The association will be heavily involved in this year’s logistics and supply chain conference.

Speaking about the conference, CEO of the VTA Peter Anderson said MEGATRANS is a welcome opportunity for the transport, logistics and supply chain to be exposed in the professional way it deserves to be.

“This isn’t just about the roads industry, MEGATRANS offers a unique opportunity for the entire breadth

PETER ANDERSON VTA, CEO

of the supply chain industry to meet together,” Peter said.

For Peter, MEGATRANS also gives community an opportunity to understand the depth and value that the supply chain contributes to the larger economy.

“It’s a great way to showcase the great work that takes place in the supply chain industry. Any opportunity to explain to our local communities the hard work that goes on behind the scenes to ensure that people have the goods and services that

they require is a welcome initiative for the VTA,” he continued.

Peter Anderson will host the opening breakfast seminar of the conference, where senior political and industry representatives will discuss the key challenges and opportunities for the freight industry.

The association will also be represented across the conference and will have senior association members and staff on hand to meet with delegates.

“While the VTA may be perceived as largely being about trucks, it’s actually about all forms of transport. We need to have an understanding of the various disciplines across the entire industry to do our job effectively and safely,” he said.

For Peter, MEGATRANS is a welcome opportunity for the entire industry to share and display their individual skills and commitment in a broader and more holistic way than other industry specific events.

To get involved in the event as a sponsor, exhibitor or delegate, visit: http://www.megatrans.com.au/ ■

MEGATRANS will present an opportunity to showcase the great work that takes place in the supply chain, says Peter Anderson.

12 | MHD FEBRUARY 2020

Your Supply Chain Reimagined.

Internet of Things, big data, advanced analytics and self-learning algorithms are just some of the technological innovations industry leaders are using to make their supply chains smarter. These advancements have the potential to improve customer experience and drive competitive advantage – or drive you out of business.

Now is the time to reimagine your supply chain.

Learn how at jda.com.

MHD E-COMMERCE

E-COMMERCE FUELS POSITIVE OUTLOOK For the fifth consecutive year, Australian exporters say they remain confident. Gary Edstein, CEO and Senior Vice President for DHL Express Oceania reveals why this presents an opportunity for logistics providers.

T

he DHL Export Barometer 2019 revealed that 69 per cent of Australian exporters are confident that the coming 12 months will bring an increase in overseas orders for their business.

The research also revealed that Australian exporters reported an increase in orders in the past 12 months.

Gary Edstein, CEO and Senior Vice President of DHL Express Oceania attributes this confidence and growth to technology, in particular developments in the e-commerce arena.

“With the e-commerce tools available here in Australia, exporters can confidently sell their product in almost any market,” he says.

According to Gary, many global consumers know that they can trust Australian exporters. The high degree of confidence in Australian exporters and retailers from the rest of the world has contributed to this growth, Gary says.

“Australian businesses can confidently send shipments around the world. Many organisations have total visibility across their entire supply chain.”

Australian exporters are very tech savvy, Gary says. “We do e-commerce extremely well. Particularly in the SME space. A contributing factor here is also the very strong social media presence that these organisations tend to have,” he says.

Much of this tech-savvy environment is down to more and more millennials coming into the workforce, Gary says. A study by Bentley University revealed that by 2025, millennials will make up almost 75 per cent of the global workforce and that 66 per cent of millennials would like to start their own business.

“Millennials want to do something different. They don’t want to work in big organisations, they want to work somewhere where they have real 14 | MHD FEBRUARY 2020

Due to the advanced e-commerce market in Australia, exporters can now confidently sell their product in almost any market. opportunities to add value. It amazes me how young some of the business owners we work with are,” Gary says.

Gary notes that start-ups and SMEs will often export to New Zealand first, to test the water before looking further afield to what is often the US. “If they start exporting to New Zealand, that’s an extra four million or so people they can reach out too, while still being able to send goods overnight,” he says.

With many other regions in the world suffering from uncertainty with regards to global trade, there is a major advantage for Australia to take a fair chunk of the market share. “The US-China trade war and Brexit are making things increasingly difficult for exporters based in these regions. But this could present an opportunity for a more stable country like Australia,” Gary says.

Key to export success for retailers is the ability to be able to send goods across the world in a safe, timely and efficient manner. This is where the opportunity for logistics providers comes in.

“Gone are the days of the traditional post-Christmas sale for the bricks and mortar retailers. Major promotional

days like Black Friday and Cyber Monday allow online retailers to tap into the global market,” Gary says.

DHL work with retailers to offer six different delivery options for the consumer, with respect to final delivery.

“They can pick to leave it at a collection point, change the date, change the time window, whatever works best for them.”

These changes are only possible because of the increase in technology, Gary says. “In one shipment, we check the goods 21 times. Therefore, we constantly have real-time data on where it is and when. Making changes along the way much easier to implement.”

While Australia may be behind the US and the UK with regards to total percentage of e-commerce spend, Gary believes that 2020 presents a great opportunity for Australia.

“The uncertainty across the US and the UK with regards to global trade present opportunities for Aussie exporters if they can be nimble, which many of them are. For me, it’s fantastic to see Australian exporters taking their product around the world and I’m excited to see what 2020 holds,” Gary says. ■

MHD COVER STORY

CELEBRATING 75 YEARS OF INNOVATION As Crown Equipment begins celebrating its 75th anniversary, MHD sits down with senior executives in the Asia Pacific region to find out more about the forklift provider’s past and its future.

O

ver the past 75 years Crown Equipment has earned a reputation as a leading innovator in world-class forklift and material handling equipment. Crown’s history began when two brothers, Carl H. Dicke and Allen A. Dicke, founded the company in New Bremen, Ohio, in the US. Today, the fourth generation of the Dicke family continues to lead the business. In 1960, the organisation began to produce a line of highquality lift trucks and soon became the fastest-growing material handling company in the US. Crown Equipment was established in Australia in 1966 and has since developed a reputation as a leading provider of material handling equipment throughout the Asia Pacific region.

Steve Stewart, Managing Director of Crown Australia, has been with the organisation for 26 years and says he loves working for Crown because it is a family-owned business with a strong focus on innovation.

Chris Ansell, Regional Director, Sales and Technology Business Development, echoes this sentiment. “Our culture has developed the way it has due to the company’s private ownership,” he says. Crown is the largest privately owned forklift truck company in the world and Chris says that the Dicke family are as invested in the business today as they were when they founded it in 1945.

RESHAPING THE INDUSTRY

The new ESR 1000 is available with lift heights up to 13,560 millimetres.

16 | MHD FEBRUARY 2020

A further advantage of being privately owned is that Crown has a history of designing and inventing new products that have helped to reshape the material handling industry.

“Being privately-owned allows

MHD COVER STORY The new ESR 1000 is a game-changer in the forklift market, says David Sultana.

“” Xxxxx

Crown to remain agile, flexible and creative.

We can change direction quickly or think outside the box, without the requirement of unengaged shareholders’ approval,” Chris says.

For Crown, when it comes to forklifts it’s all about the experience. With a focus on the operator, Crown’s human-centred designs are created to improve productivity, comfort and safety.

Crown’s approach to industrial product design builds upon advanced ideas for lift truck operator productivity, safety and product lifespan. This is something that Steve says will continue to shape the future of Crown Equipment.

“Our focus on research and development and developing new and innovative material handling solutions will continue to go from strength to strength,” he says.

One area where Steve says this will be a continued area of growth is in the interest of semi and fully automated material handling solutions. “This is another new and exciting chapter in the company’s development and this will be a real growth area over the next five to 10 years,” he says.

LONG-TERM COMMITMENT TO THE REGION Many of the employees of Crown Equipment have been with the business for a long time, including Steve and Chris. Steve has been with the company for 26 years and Chris for 33 years.

“I started at Crown as a very young man. The sales discipline and philosophy of ‘solving the customer’s problems’ has held me in good stead over the

Chris Ansell is Regional Director Sales and Technology Business Development.

“

Being privatelyowned allows Crown to remain agile, flexible and creative.

We can change direction quickly or think outside the box, without the requirement of shareholders’ approval.

”

following 35 years,” Steve says.

For Steve, a key memory was learning to conduct product demonstrations as a part of his early development. “I also enjoyed the successes of the sales team I was involved in and the team spirit that came with that.

I still feel that excitement when we launch new and innovative products in our region today,” he says.

Similarly, Chris reflects back on his early years with Crown and remembers his first new lift truck order. “It was the sale of an M Series walkie stacker to a company that manufactured feather dusters in Mansfield, Brisbane. I also have some great memories of my involvement in developing and opening new branches around Australia including Perth, Townsville Toowoomba, Gold Coast, as well as the Bangkok operation,” he says.

Chris is particularly proud of his involvement in setting up the West Australian operation in 1998 and the more recent focus on Southeast Asia in 2013 where Crown set up a branch network to replicate the model they have in Australia.

“Our growth in Southeast Asia has allowed us to develop company-owned operations in emerging markets throughout the region and this has opened up opportunities for our Australian and New Zealand teams to contribute sales, service and rental management expertise in these new branches,” Steve says.

Crown now operates directly in Singapore, Malaysia, Thailand, Korea, Philippines and Vietnam, via 10 company-owned branches.

“This is an exciting phase that we are still involved in today as this part of the world looks for more advanced methods of MHD FEBRUARY 2020 | 17

MHD COVER STORY

Crown in Australia include the launch of the TSP Series turret truck. “Crown has been the leader in turret trucks since releasing the MonoLift™ mast design TSP Series in 1988. Further examples include the Wave® Work Assist Vehicle, our in-house developed InfoLink fleet management system, QuickPick Remote order picking technology and the RM Series reach truck line,” Chris says.

UNMATCHED IN THE INDUSTRY

The evolution of the Crown Equipment logo. materials handling,” Steve says.

Chris also reflects back even earlier in the establishment of Crown factories in Australia in 1966. “This had a significant influence on Crown becoming the number-one battery electric truck supplier in Australia,” he says.

Other milestones in the history of

Crown manufactures up to 85 per cent of its lift truck components so that they can better manage quality and parts availability for its customers.

The organisation has factories in both Europe and North America and is unique in that its full range of products are manufactured to service global market requirements.

“In our region, customers use both European and North American style lift trucks, with the availability of our global range. Our sales teams can satisfy customers’ needs with the one brand of truck,” Chris says.

For Chris, this is a key point of difference as many other providers in this field are focused on building products to a price point, and using

The ESR 1000 Series reach truck is the first to use Crown Equipment’s new Gena operating system.

18 | MHD FEBRUARY 2020

multiple product sources from different factory origins, to pull together a complete product solution.

However, with Crown that is not the case, ultimately ensuring that customers have a very reliable product.

“We are unmatched in the industry. As I have told customers over the years, you will not know you have bought the right lift truck until it breaks down. It is only then that the importance of service staff and parts availability will be properly understood and appreciated,” Steve says.

Another point of difference is the level of engineering that goes into a Crown truck. “Compared with some other brands, there’s more steel in a Crown lift truck as we are committed to building things to last. We don’t build lift trucks with the notion of them needing to be replaced in three, four or five-year intervals,” Chris says.

He notes that some of Australia’s biggest companies, operating in the hardest applications, will use a Crown reach truck or pallet truck for 25,000 hours.

LOOKING TO THE FUTURE With innovation being a key factor in

MHD COVER STORY

Crown’s past 75 years, it will continue to set the pace for the next 75 years.

“I hope to still be around in 2045, to help the company celebrate 100 years. I am sure I will be amazed by the products we will be building and supplying 25 years from now if the progress made since my first day back in 1983 is any indication of how things will change over time,” Steve says.

For 2020, Crown has some exciting products to launch to market, starting with its ESR 1000 Series reach truck line and its new touchscreen display system for InfoLink.

The new ESR 1000 Series will be the first lift trucks to use Crown Equipment’s new Gena® operating system. They are available with lift heights of up to 13,560 millimetres, load capacities of up to two tonnes and feature a system that allows customers to choose between lead acid or lithiumion as their motive power solution.

The Gena operating system is intuitive, customisable and interactive and features a 7-inch colour touchscreen in one of 25 selectable languages. It operates seamlessly with the InfoLink fleet management system to provide reliable management data and a broad range of interactive graphical checklists, together with safety instructions.

For David Sultana, Director of Marketing for Crown in Asia Pacific, the ESR 1000 is more than a reach truck, it’s a real warehouse material handling solutions partner in terms

In the early 1950s Crown manufactured the Bumper-Upper car jack.

Steve Stewart is Managing Director of Crown Australia.

of operating speed, performance, efficiency, communication offering business incredible productivity gain opportunities.

“Innovative material handling equipment is nothing new to Crown, our company has received more than 100 prominent design awards over the years. The new ESR 1000 Series with its Gena operating system redefines the way lift truck operators can interact with their reach truck. It sets a new benchmark in the industry,” David says.

“It’s a great example of Crown’s preferred approach to optimising real productivity and performance, which is designed to help make material handling for our customers’ operations easier, safer and more cost-effective,” he says.

The new InfoLink 7” Touch Display Module is a larger, more robust display module option for its forklifts equipped with Crown’s InfoLink® fleet and operator management system.

It enhances the operator experience with greater functionality and an interface designed to simplify on boarding, maximise productivity and reinforce safety while also creating a more informative and personalised experience for operators.

“We believe deployment of any technology must immediately disprove the misperception that it is more complex than the prior solution. This is why our design thinking approach includes studying how operators interact with our forklifts to better understand work context, physiological needs and cognitive requirements,” Kim Stachler, Marketing Connected Product Manager, Crown Equipment Corporation says.

The information presented on the adjustable colour LCD display creates a more informative and personalised experience for operators. It features intuitive and easy-to-read menus and configurable widgets enable operators to customise their screen and receive context-sensitive alerts to increase engagement with the forklift.

“I think the next 75 years of Crown Equipment will be similar to the last 75 years, with ongoing innovation and development. There is no doubt in my mind that we will continue to influence how customers manage, store and pick products over the next 75 years,” Chris concludes. ■ MHD FEBRUARY 2020 | 19

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MHD SUPPLY CHAIN

THE FUTURE FOR THIRD-PARTY LOGISTICS PROVIDERS MHD sits down with Joe Couto, CEO at HighJump to talk consolidations, shrinking workforce and opportunities for new players in third-party logistics (3PL) warehousing.

E-commerce is demanding more and more people to work in the warehouse, but the demand is far exceeding the supply.

I

n June 2019, Emergent Cold, one of the largest cold-chain logistics operators, announced that it would be acquiring local cold-chain logistics provider Oxford Cold Storage.

Joe Couto is CEO for Africa, Asia Pacific and Latin American HighJump operations as well as responsbile for the organsation’s 3PL strategy globally. He says that this level of consolidation is not unique to Australia, with significant consolidation taking place at a global level.

This high level of consolidation for the industry presents a number of

issues in terms of the varying degrees of solutions and technology in use by 3PL professionals. Migrating to a common platform can be time consuming and expensive but necessary to gain efficiencies, Joe says.

This may also present opportunities for smaller, more niche players to come into the market. This is part of the natural evolution of new entrants into the market as consolidation takes place, Joe says.

Additionally, according to Joe, it is more important than ever to have unification of IT solutions when

these mergers take place.

“Companies need a strategy in place to ensure that when these mergers take place their IT and infrastructure can be integrated easily and rapidly” he says.

Highump offers its cloud-based solution so its 3PL customers can scale rapidly as they acquire companies. Joe says HighJump has 3PL customers who are migrating customers/warehouses to the HighJump warehouse management Cloud solution within a period of four to six weeks per warehouse.

HighJump enables its customers on a single deployment to have many MHD FEBRUARY 2020 | 21

MHD SUPPLY CHAIN

day service. The view here is to take better care of the planet through carbon footprint reduction by offering this kind of shipping.

OPTIMISATION

Each warehouse can have varying degrees of automation to suit the business case of each operation.

warehouses. Each warehouse can have varying degrees of automation to suit the business case of each warehouse operation, whether it’s some automation, voice, robotics or fully automated sites.

SHRINKING WORKFORCE Another issue that Joe highlights is the shrinking workforce in logistics. “It’s very difficult to find people who want to work in a warehouse,” he says.

As a result of this organisations are continuing to explore new ways of improving productivity with less people, something that HighJump fully supports.

“E-commerce is demanding more and more people to work in the warehouse, but the demand is far exceeding the supply of people. This is where many organisations are starting to look to more automated solutions – bots, voice and other tech etc. it’s all becoming much more accessible in the warehouse,” Joe says.

Parallel with this trend, there is also a shift to use previous retail spaces as mini warehouses in urban areas, Joe has found.

“We’ve seen a trend towards smaller retail stores and transforming some retail stores or part of a store into inner city warehouses to support e-commerce growth,” he says.

Another potential trend Joe says has the ability to shake the market up is a reverse trend. “I think we will start to see some e-commerce companies say we don’t want to be a same day provider. These companies want to appeal to consumers and their values,“ he says.

Customers who want to be aligned with companies who want a better planet are happy to purchase items that will be delivered in three to five days, versus same or next 22 | MHD FEBRUARY 2020

At HighJump, a main focus is to help organisations optimise their operations.

“We know that in logistics and warehousing it is so important to be adaptable and agile, and we work closely with our clients to make sure that they are able to scale up when required,” Joe says.

HighJump is leveraging some of the tools they have to help organisations improve productivity, while recognising that they need to offer smarter more automated solutions due to the shrinking workforce.

The organisation also recently formulated a strategic partnership with Locus Robotics, an autonomous mobile robot (AMR) provider for fulfilment warehouses.

HighJump and Locus will work together to facilitate the development of integration tools that will allow for faster, seamless implementations to improve productivity and efficiency for shared retail and third-party logistics customers.

“At HighJump we love making our customers better, and this means leveraging the innovative technologies of tomorrow.

AMRs in the warehouse is an area we believe will drive tremendous value. This partnership allows us to deliver cutting edge AMR technology to our customers and work collaboratively with Locus Robotics to conquer supply chain complexity with the warehouse of the future,” John Santagate, Vice President, Robotics at HighJump says.

“In today’s day and age, you need to make some investment in automation (RF and or voice, and or robotics and or conveyors) and technology. Smaller organisations can get the same capability as some of the bigger organisations because solutions are now scalable. Offering an easy entry into automation,” Joe says.

Joe references HighJump customer Adore Beauty, Australia’s largest online beauty retailer, who was able to scale up using their warehouse management system offering as the business grew rapidly, while concurrently reducing their carbon footprint by using less paper to support their warehouse operations.

“With HighJump one of the common ways we help organisations scale up is with size and volume. You can adapt the same solution to adjust to industry trends while also scale up as your business grows, it makes it very easy to grow quickly and keep your customers happy,” Joe says. ■

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MHD TECHNOLOGY

AHEAD OF THE CURVE After introducing an integrated robotic solution at its distribution centre, Galipo Foods managed to double their picking rate. Nathan Narayanan, General Manager at the company explains why the return on investment is not just about productivity gains.

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alipo Foods is a family-owned food service distributor, based in South Australia. The business started in 1983 and has now grown to become the largest food distributor in South Australia, servicing approximately 3,000 customers with more than 7,000 products. Its warehouse distribution facility covers 15,000 sqm, and is serviced by 48 trucks and 170 employees.

In 2018, the organisation started to strategise what the future of the business would look like, during this time a facility expansion programme was launched. “We put together our five-year plan and as we were starting to build it we asked ourselves the question: what kind of technology do we want in this new facility? Keeping in mind that this was a five to seven-year plan, we knew we needed to be ahead of the curve,” Nathan Narayanan, General Manager at Galipo says.

From here, Nathan started to look at the latest technology in the warehouse sector. “We looked at what the next ten years of warehousing would look like, and that’s when we started looking at implementing Autonomous Mobile Robots (AMR),” he says.

Galipo Foods is the first food service provider to implement AMR in a temperature-controlled environment.

24 | MHD FEBRUARY 2020

MHD TECHNOLOGY

Galipo had already implemented technology into their warehouse operations back in 2015, with the deployment of Cohesio Group’s voice-aided picking technology. “By introducing voice, we already had a lot of efficiency and productivity gains.

Compared to many of our competitors in this space, we were already more advanced in using tech to improve productivity,” Nathan says.

When it came to choosing an implementation partner for the next phase of technological development at Galipo, Nathan had no doubt in his mind he would work with Cohesio – an Australian tech integrator and developer who specialise in voice and robotic supply chain solutions.

“I knew the leadership team at Cohesio from their previous workplaces, but our decision to work with them went beyond that. They were the only provider who could come up with the right solution for us. When we started to explore the voice solution, I knew I didn’t want a new Warehouse Management System.

I wanted a connector between my business and any technology we were going to implement, and Cohesio was the only provider who could come up with this,” Nathan says.

There are many synergies between the team at Cohesio and Galipo Foods.

AHEAD OF THE CURVE Once Nathan engaged Cohesio in the project, the discussions began to take place in November 2018. “This is where we started to put together a plan and strategy. We worked very closely with Cohesio. They understood that the margins are tight in our sector so it’s absolutely critical to run a lean operation,” he says.

Galipo signed off the project in January 2019, with implementation starting in March and the project went live in June.

According to Nathan, there are synergies that both Galipo and Cohesio share – largely due to Galipo being a family-owned business and Cohesio being a disruptive tech hub.

“With Cohesio you feel like you are an important customer. They really make you feel like you mean something to them and they are completely engaged and invested in the project,” Nathan says.

Through the introduction of AMRs, Galipo Foods managed to double its picking rate.

Another feature both organisations share, is the ability to be nimble. “We had a very short timeframe. We wanted to make a statement to the industry in being the first food service provider to implement this kind of solution so we wanted to turn it round very quickly.

We’re able to be very nimble, going from case study to analysis to sign off in a short time. And Cohesio was able to do the same,” Nathan says.

The project has enabled Galipo to become the world’s first AMR project in a temperature-controlled environment, which Nathan is extremely proud of.

“Both businesses saw the reasons to turn this around very quickly, and we all worked really hard to do this,” he says.

CHANGE FOR GOOD According to Nathan, Galipo has always tried to ensure that everyone recognises that change in a business is a positive thing. “We’re all very receptive to the idea of change. One of the main advantages we have at Galipo is that we work together and understand why change is important. We have always recognised the benefits of changes in technology and this instance is a prime example of that,” he says.

When the organisation implemented voice, Nathan says that they made a pledge to the business that there would be no redundancies. “In fact, since 2015 we have only grown our workforce,” he says.

This pledge was reinforced when the decision to deploy robotics was made.

MHD FEBRUARY 2020 | 25

MHD TECHNOLOGY

For Nathan, this project presents a new frontier in the use of AMR technology.

“One of our key focuses was to get deliveries out quicker and earlier than the current rate we were dispatching at. I explained to the team that we would redeploy people into newer areas so we could achieve better service levels.

Everyone understood this and embraced the changes,” Nathan says.

Phase one of the solution comprises of 12 robots, deployed into the refrigerated warehouse located in Dry Creek, South Australia. Since the AMR project was implemented, Nathan recalls that there has been an increase in ten full time employees.

“For us, it’s not just about increasing top line, but about how you increase value to your customers,” he says.

There is also the added benefit of upskilling.

“Suddenly you’re no longer a warehouse picker but an operator of a robotics warehouse which requires a different level of skill,” Nathan says.

DOUBLING PICKING RATES With implementation taking place just over six months ago, Galipo is already realising significant efficiency gains. The AMRs have doubled the pallet-picking rate, allowing the team to better meet customer demands.

“Part of the reason I considered this kind of technology is because I recognised that when you look at traditional picking rates, you see workers walking from bay 7, to bay 14 back to bay 1. This involves a lot of lost time walking, 26 | MHD FEBRUARY 2020

“

The other day I went to do some traditional picking, and while you may be able to pick at 177 cases an hour, the only way to pick at 400 an hour is to have all the products come to you.

”

Cohesio is currently working with Galipo to implement phase two of the project.

MHD TECHNOLOGY

you lose so much productivity when you walk from one location to another to get product,” Nathan says.

Sometimes the walk time was far exceeding the pick time. Nathan recognised that the only way to minimise it was to get the location to come to the picker, rather than the picker go to the location.

“The other day I went to do some traditional picking, and while you may be able to pick at 177 cases an hour, the only way to pick at 400 an hour is to have all the products come to you,” Nathan says.

Which is the case when AMRs are deployed. Additionally, with traditional picking sometimes a picker can get to a location but there is no stock left on the shelf. “This never happens with AMRs, the stock is always on the shelf,” Nathan says.

Nathan also notes that there are numerous benefits that go beyond the fundamentals of efficiency gains.

“Stock segregation, hygiene, stock rotation – these are all benefits we have found from the deployment of this

technology. When you try and calculate a return on investment it’s not just about productivity gains.”

A further requirement that Galipo had was to ensure that downtime was kept to a minimum. “For a business like ours, servicing commercial kitchens that make orders on a day-to-day basis we just simply cannot afford any downtime.

Cohesio completely understood this. It was all covered from a strategy point of view and they have made sure that we have a two-hour back up plan so that we don’t lose any productivity if something was to go wrong,” he says.

In addition, the beginning of the project only involved 20 or 30 lines so that the environment could be operated in as a test. This was done for an entire month before shifting nearly 700 lines into the operation.

“We approached the project slowly, to ensure that we were completely ready. I had my project coordinator pretty much picking every day, We were on the ground that month ensuring that everything worked smoothly,” Nathan says.

PHASE TWO This project represents a new frontier in the use of AMR technology and is the result of a collaborative effort with robotics manufacturer Geek+, Cohesio and Galipo Foods.

“The implementation was such a huge success that Cohesio is here right now implementing phase two in the cool room,” Nathan says. Galipo has ordered 20 more robots and went live with phase two in February 2020.

“Cohesio is a business to be proud of within Australia. To have an organisation as committed to embracing technology and helping businesses like ours here in Australia is a really great win,” Nathan says.

Nathan notes that in deploying this kind of technology, a lot of the credit usually goes to the business that utilises the technology but not the one that came up with the solution, and he humbly suggests that Cohesio need to be acknowledged for all the great work that they have done in coming up with this solution. ■

MHD FEBRUARY 2020 | 27

MHD MATERIALS HANDLING

HOW TO EFFECTIVELY FULFIL ONLINE ORDERS WITH STORE ORDERS As the pressure of online orders increases, Brad Welsman, Managing Director of SSI Schaefer Australia and New Zealand offers some advice on how to run a cost-effective operation.

M

any retailers with bricks and mortar businesses already have or are introducing an online business.

Often online is approached as a separate business and the fulfilment of online orders is carried out quite separately from store orders, possibly from stores, or from a separate facility, or through a third-party logistics provider.

When asked whether their e-fulfilment operations were segregated from traditional fulfilment, 59 percent of respondents of Supply Chain Quarterly Q4 2016 said yes.

When starting out, this can be a good approach, but over time, as the online business grows, it makes sense to take an integrated approach and fulfil both types of orders from the same facility and system.

Research carried out by Heinrich Kuhn Business School revealed that consolidating online and offline inventories reduces overall inventory level and therefore reduces logistics cost.

The benefits of an integrated approach include lower infrastructure costs and overheads, lower orderpicking costs, one set of inventory and a single warehouse management system with centralised data, encompassing customers, products and inventory visibility.

“Retailers rank cost-effective shipping and fulfilment, as well as optimising inventory across all channels, as among their top operational challenges,” Mark Troselj, Vice President 28 | MHD FEBRUARY 2020

and General Manager of ANZ for Netsuit says.

THE DIFFICULTY WITH ONLINE ORDERS However, fulfilling online orders is very different and more challenging than fulfilling store orders: • Generally online orders are small, typically with an average of one to three order lines per order. There are some exceptions such as grocery, but as a rule, online business comprises many small orders, which are difficult to pick efficiently.

• Often with online orders, there are special packing requirements

including re-packed into satchels, gift wrapping or including special messages.

• Increasingly there is pressure to deliver online orders quicker, next day or same day, as customer expectations become more demanding.

• Other issues unique to online orders include very high peak times compared to the average day, with Monday for example generally being a big day due to weekend orders. Also new releases, promotions, shopping festivals and seasonal periods can all rapidly increase the volume of online orders.

As well as the above characteristics,

MHD MATERIALS HANDLING

the picking activity for online orders is very different than for store orders. As online orders , by nature small, are very small, picking many small orders significantly increases the travel distance for pickers, so that they are inherently less productive.

As an example, if 200 store orders are shipped a day, each with 100 order lines, 20,000 order lines are despatched. If an online business is shipping 20,000 order lines, that will probably be 10,000 orders per day each with 2 order lines. In both cases 20,000 order lines are shipped, and the same value is sold, but the costs to pick and pack the online orders is much higher than the store orders.

Batch, pick and sort with put walls A very cost-effective way of sorting batch picked items back into individual orders is via a “put wall”. A put wall is a set of shelving locations or pigeonholes into which batch picked items are manually “put”.

Each location represents one customer order and is fitted with a light. When an item from a tote of batch picked orders is scanned, a light indicates into which compartment the item should be placed. When the order compartment has received all if its items, the light flashes and the order can be packed and shipped.

Goods-to-person picking Goods-to-person picking delivers high productivity, typically from 500 to 1,500 items per hour per station. The items to be picked and the orders cartons or totes to receive the items are brought automatically to and from the pick station as required.

Operators pick from SKU storage totes into up to seven order totes or cartons. A light curtain above each order verifies that the operator has put the item into the correct tote. Because the operator essentially does not need to walk anywhere, this system delivers optimal picking productivity.

Goods-to-Person systems require that

EFFICIENT WAYS OF DEALING WITH ONLINE ORDERS There are three main ways of dealing with online orders efficiently; batch pick and sort, bringing the goods to the person, and treating single-piece orders separately.

Batch, pick and sort Batching orders together reduces picker travel and increases efficiency. Rather than picking small orders one by one, orders can be batched together to create bigger, more efficient, picking tasks. Sorting is then required to reconstitute the individual orders ready for packing and despatch.

With batch picking, each SKU is only picked once per batch, reducing travel distance.

The total required quantity of a SKU for the batch can be picked regardless of whether the items are for store or online orders.

This means visiting each pick location only once during picking of the batch. Multiple SKUs can be picked into one or more large plastic totes delivering excellent picking productivity. The bigger the batch, the better the picking efficiency.

There is a range of automatic unitsortation options which allow items to be sorted back into discrete orders with high throughput. These include put walls, splittray, tilt-tray and cross-belt sorters.

Goods-to-person picking delivers high productivity.

Batch, pick and sort with put walls.

MHD FEBRUARY 2020 | 29

MHD MATERIALS HANDLING

The operator does not need to walk anywhere.

The items to be picked are bought directly to the operator.

all incoming goods are decanted into plastic storage totes which are then stored and retrieved automatically from a dynamic storage and retrieval system which sits behind the pick stations.

In order to get higher picking efficiency and reduce the number of order totes in the system, multiple online orders can be batched together into one tote. These are then sorted out into separate orders later, for example at a pack station with a put wall.

A great benefit of goods-to-person systems is that they can be used to pick store and online orders together in one highly productive system.

Treating single piece orders separately A single piece order is when a customer orders only one item. In many instances, these can represent a significant proportion of online orders, sometimes 20, 30 or 40 per cent.

Another flexible option is to sequence rather than sort.

30 | MHD FEBRUARY 2020

Single piece orders can be batch picked into plastic totes and conveyed directly to packing. An operator then scans an item, prints a despatch label, and packs the order ready for despatch.

Treating single piece orders separately provides the full benefits of high productivity batch picking without the disadvantage of needing to sort afterwards, and can be used regardless of the chosen picking methodology.

MAINTAINING FLEXIBILITY Since growth rates and peaks in online orders can be unpredictable, maintaining flexibility is often a high priority in choosing a suitable order fulfilment solution.

There are lower-cost, less automated and more flexible alternatives for fulfilling stores and online orders than using automatic sorters or goods-toperson systems.

Cluster picking One example is cluster picking with trolleys. Multiple orders are associated with a trolley and picked in parallel into individual totes on the trolley with one pass of the pick face. Typically, a trolley can carry 6 or 8 order totes or cartons.

Picking efficiency can be increased by batching multiple online orders into one tote. With 8 online orders in a tote and 8 totes on the trolley for example, 64 orders can be picked in one pass of the pick face delivering real efficiency gains.

Batch, pick and sequence Another flexible option is to sequence rather than sort. This system is based on overhead conveying technology similar to garment on hanger (GOH) systems but using hanging carriers or pouches which can carry flatware and other small items.

SKUs are batch picked to totes or as full cases and conveyed to a pouch loading station. Each item is scanned into a separate carrier. Individual items are then sequenced to form orders and are sent to the pack station in order combination.

This type of system can be easily retrofitted to existing sites and makes good use of headroom. ■ Brad Welsman is Managing Director with SSI SCHAEFER, Australia and New Zealand.

MHD MATERIALS HANDLING

DURABILITY DRIVES FOOD TRANSPORT GIANT’S TOYOTA PURCHASE Tasmania’s largest food distribution business, SRT Logistics, has taken delivery of 36 new Toyota Material Handling forklifts and pallet jacks, which it purchased outright after considering a business case to depart from a leasing model.

SRT Logistics CEO Rob Miller (left) with TMHA Hobart area sales manager, Rodney Jones, and the first of 36 new Toyota forklifts and pallet jacks.

H

eadquartered in Brighton, near Hobart, SRT Logistics has grown from a small refrigerated food transport operation to a full supply chain management provider. With five distribution centres, it services every town in Tasmania with dry, frozen and chilled foods for customers such as Woolworths, Lion, and Schweppes, and also ships across the Bass Strait to its Melbourne depot.

All its sites feature dedicated refrigerated warehouses with sealed loading docks.

CEO Rob Miller says his father, Jim, founded SRT Logistics 30 years ago before Rob and his brother Brent Miller joined the business. “My father had a refrigerated truck or two and worked with Purity supermarkets, which is now Woolworths. When I started in the 32 | MHD FEBRUARY 2020

family business, in 1997, we didn’t even have a forklift because we didn’t have a warehouse. We just worked out of the truck yard, but things grew.

“We evolved from a ‘truck and a connote’, taking goods from A-to-B. Now we have warehousing and distribution. We have sophisticated freight management systems and equipment with cameras and telematics - lots of real-time data happening. We’re across the whole supply chain.”

Rob put one of the reasons for SRT’s exponential growth down to its readiness to adapt to increased food safety compliance. “In the early nineties, a lot of food safety and temperature control factors came into the industry,” Rob says.

“Compliance started to ramp up and we were able to adjust our business to meet that, whereas some other businesses

weren’t able to do so.

“In the nineties, we won some large contracts and started distributing chilled and frozen goods for customers such as Woolworths. That was when our volume of work started to really generate and provided the foundation for us to grow the rest of the business.”

Accompanying this spike in volume was a need for material handling equipment to meet such demand.

SRT started by renting forklifts from another brand however after some problems turned to Toyota Material Handling Equipment Australia (TMHA).

“Our old gear was sort of dying and running out,” Rob says. “Then we met (TMHA’s) Rodney Jones and the business ended up buying four Toyota forklifts from TMHA. Hobart area sales manager Rodney Jones says that from the outset it was clear that TMHA and SRT held shared business values, and similar expectations.

“SRT doesn’t see itself as just a service provider to its customers. More than that, it makes itself a true business partner,” Rodney says. “We at TMHA take a similar approach. We take the time to understand the details of our customers’ operations so we can help them with equipment solutions that best suit their specific needs and provide the most efficient and economical outcomes. We call this Tailored Business Solutions and it is one of the cornerstones of the Toyota Advantage.”

According to Rob, SRT’s customers conduct business at a rapid pace and

MHD MATERIALS HANDLING

expect speedy responses. In turn, it required a material handling equipment partner with swift response capabilities. “The nature of the market that we’re in is that everything’s fastmoving and time-sensitive for our customers,” he says. “To service our customers we need the same kind of response from our business partners - whether it be for forklifts or trucks.

“We have found TMHA’s service and attention to any issues to be really good. And they have to be because service back-up is such a big consideration for our business. That’s extremely important for us and therefore was key to our ongoing relationship with TMHA.” With the first four Toyota forklifts performing strongly, SRT eventually decided on adding another 36 Toyota machines comprised of Toyota 8FBN 2.5-tonne fourwheel and Toyota 8FBE 1.8-tonne three-wheel battery electric forklifts, 32-8FG 1.8-tonne four-wheel gas forklifts, Toyota BT LPE220 ride-on electric pallet jacks and BT LWE130 electric pallet jacks.

SRT conducted due diligence before making the decision, which was based on multiple factors. “We looked at the offerings from the main fork suppliers,” Rob says. “In the end, it was a combination of our history and experience of the Toyota forks - the longevity and consistency of their performance - the pricing of the gear and the ability for our supplier to also meet our short-term rental requirements while the new equipment was on order. All those things went into the decision to choose Toyota Material Handling equipment.

Rob says the performance of SRT’s first four forklifts was especially instrumental in TMHA being chosen for its latest order.

“The old machines performed really well.

We never had any problems with those early Toyota forks. It’s been the most reliable material handling gear we’ve used, so I reckon that our history certainly helped in us making our decision to purchase the latest additions to the fleet.

“We had good longevity out of that equipment - we still have a couple of those kicking around 15 years later - and expect to get the same or better out of the new machines.

If you can get 10-15 years out of that type of equipment you’re doing well.”

Such feats of durability and reliability another key Toyota Advantage - demonstrated

by SRT’s first Toyota Forklifts is made more impressive considering the business operates constantly. “We’re pretty much run 24 hours per day, seven days a week and we have operated that model for most of the last 15 years,” he says.

With up-time being so vital in an ‘always-

“

We had good longevity out of Toyota’s equipment - we still have a couple of those kicking around 15 years later - and expect to get the same or better out of the new machines.

”

on’ business, the reliability of material handling equipment is paramount. “If it’s 2am and you have machinery break down on you it makes it hard to keep the place going. Up-time is critical for us. You need to put gear in there that you know will just keep going.

“Obviously you’ve got to service and look after your equipment, but you can schedule servicing, you can’t schedule breakdowns.”

Another example of TMHA’s Tailored Business Solutions Advantage in action was being able to secure a short-term rental fleet for SRT whilst its new machines were on order. “Once we had placed the order we still needed a stop-gap solution so Rod and the guys stepped in to help round-up a temporary hire fleet to get us through until our new machines were delivered,” Rob says. “That also helped with our purchasing decision. Who we bought machines from was also dependent on how well they could fill the gap in the meantime.”

Rob says his confidence in the durability of the Toyota forklifts influenced SRT’s decision to move away from a leasing model. “We’d have been less likely to buy them outright if we had concerns about their reliability - especially long-term,” he says. “Toyota has a reputation for the durability of its equipment. It’s reputation as such was a factor in choosing to own the equipment outright. We have faith that we will get a long service life out of the Toyota forks. Otherwise we wouldn’t have moved away from leasing.

“We felt there was less risk of things going wrong. TMHA’s forklift reputation and track record helped mitigate that risk and increase our confidence in making such a considerable financial commitment.” ■ For more information freecall 1800 425 438 or visit www.toyotamaterialhandling.com.au.

SRT Logistics operates 24 hours a day, seven days a week.

MHD FEBRUARY 2020 | 33

MHD MATERIALS HANDLING

MAXIMISING WAREHOUSE FOOTPRINT Hobson Engineering recently expanded its warehouse and in doing so introduced a new solution to combat rising costs. MHD finds out more.

Hobson Engineering recently developed a new 15,000 square-metre distribution centre in Melbourne.

E

stablished in 1935, Hobson Engineering is a familyowned and operated Australian business, that maintains a reputation for quality fasteners and coatings in the construction, oil, gas and mining industries.

Hobson prides itself on having the experience, technical knowledge, warehouse capacity and full product quality traceability to provide its customers with the most comprehensive fastening solution available in the Australian market.

Hobson has manufacturing cells and warehousing in Sydney, Brisbane, Townsville, Melbourne and Perth.

TIME FOR A NEW TECHNOLOGY SOLUTION Hobson Engineering recently developed a new 15,000 square-metre distribution centre (DC) in Melbourne, due to the old building, which was 3,900 SQM, being too small for operations.

With the development of this larger DC 34 | MHD FEBRUARY 2020

in Melbourne, Hobson started looking for a new warehouse solution to combat rising costs and ensure they could make the best use of their warehouse space.

“Hobson needed a solution for its new DC catering for 63,000 storage positions for pallets and handpicking,” said Brett Clapham, co-owner of Total Racking Systems. “Total Racking Systems and Colby Storage Solutions came up with a solution to optimise the rack design for Hobson’s unique needs.”

Hobson currently dispatch over one million order lines or 25,000 ton of product per annum, with 80 percent dispatched same day and 15 percent dispatched next day. This meant it was crucial they installed a solution that would enable them to continue to meet these high volumes.

“Hobson had previously worked with Total Racking Systems and Colby Storage Solutions very successfully, so when the time came to look for a solution for our new warehouse, we knew we could rely on them again,” said Geoff Lunz,

National Asset and Property Manager, Hobson Engineering. “They made it their business to study our warehouse and and came up with a tailored solution that maximised the space and accounted for many different profiles.”

MAXIMISING SPACE A typical day within Hobson’s warehouse involves picking and packing stock from storage locations, with incoming stock to be located in the vacated racks. The warehouse operates 24 hours, seven days a week, which means Hobson needs to constantly unpack the containers coming in to replenish for each days’ sales.

Total Racking Systems and Colby Storage Solutions created a new profile pallet racking beam to meet the specific storage needs of Hobson’s products.

“They worked out that as we use only Euro pallets, they could reduce the size of standard racks and fit more racking into the same space, which was a huge boon for our storage,” explained Geoff.

MHD MATERIALS HANDLING BENEFITS FOR CUSTOMERS AND WAREHOUSE WORKERS

“ Goeff Lunz, National Asset and Property Manager at Hobson Engineering.

Colby installed Narrow Aisle racking with a new boxed profile for the required spacing between beams, which also allowed for some bay loadings to hold up to 27,000kg. The space between racks was designed for staff to be able to clear any packaging with ease and the 1800mm wide aisle spacing was designed to allow the movement of wire guided Linde trucks.

“We recognised that Hobson could fit more racks in by minimising wasted rack width,” said Brett. “Narrow Aisle racking suited Hobson’s warehouse requirements and allowed them to fit more racks within the same space and store more product than they were previously able to.”

The increased efficiency and productivity of the DC allowed Hobson to supply their customers faster than any other supplier in the industry and ship products overnight.

”

Colby’s racking solution is sturdy and oversized so it makes it easy to navigate and it allows more stock to be held in the same space, maximising the use of available space. The increased efficiency and productivity of the DC allowed Hobson to supply their customers faster than any other supplier in the industry and ship products overnight.

During the two-month installation of the new Colby Storage Solutions racking, Hobson found that its warehouse employees reacted well, as the benefits to the efficiency of warehouse operations were obvious from very early on.

FUTURE PROOFING THE WAREHOUSE Hobson maintains a vision for a sustainable future through continuous improvement and technology-based workflow.

“Total Racking Systems and Colby Storage Solutions again worked out the best solution for our warehouse requirements and we look forward to continuing our strong relationship with them,” said Geoff. “They have also assisted us in looking to the future operations of our businesses, and the racking has been future proofed for self-driving forklifts in the future.”

ColbyRACK is designed, engineered, and manufactured in Australia by Dematic Pty Ltd. ■

Colby installed Narrow Aisle racking with a new boxed profile for the required spacing between beams.

MHD FEBRUARY 2020 | 35

MHD MATERIALS HANDLING

A LOCAL LEADER Home-grown materials handling specialist Capstone Industries has recently started to develop its own engineering in house, with great results.

Capstone do all of their own engineering and design in house.

I

n 2015, Tieman Industries, one of the leading materials handling suppliers in Australia, went into administration. According to Keith Harrison, Business Development Manager at Capstone Industries this left a gap in the market that previous employees at the company were keen to fill.

“Tieman was the major powerhouse in the materials handling industry for more than 60 years, and many of the industries finest worked for that company,” Keith says.

Shayne Gregoire and Ben Cleary, former Tieman Industries employees, started Capstone Industries in 2015 to offer the service that was needed, and now lacking, in the materials handling industry.

“The business started off with a ute and two guys,” Keith says.

Ben and Shane worked long and hard hours servicing the waste and materials handling industry to earn enough capital to buy a factory in Campbellfield, Victoria.

Capstone quickly grew its offering and now has 13 full-time technicians out supporting its customers every day, as well as a network of 36 | MHD FEBRUARY 2020

authorised service agents covering all corners of the country. As one of the largest materials handling service organisations in Australia, 24/7 support is Capstone’s promise.

With docking equipment playing such a crucial role in some of Australia’s largest retail businesses, this service promise is a key point of difference, Keith says. “For the larger retailers and distribution centres, for example, if a dock leveller goes down then operations are impacted, equipment reliability is absolutely crucial.”

Over the past 18 months, since Keith joined the business, there has been a expansion in focus for the organisation. “For years we primarily provided a service offering, but as I started to meet with people in the materials handling industry I realised that there was a need for a more bespoke offering than what any of our suppliers could give us,” Keith says.

Capstone differs from other organisations offering materials handling solutions in that they do all of the engineering and design in house, equipment is designed in Australia for Australian conditions. “Most of our

competitors are resellers, they’ll will import overseas products, put a margin on it and resell it. It’s a totally different game when you have the capability to design and build that equipment yourself,” Keith says.

When Keith first came on board, the business was not developing or selling any of its own products. But after a few customers approached Keith to design bespoke solutions, the organisation soon recognised a gap in the market.

“A customer asked us if we had a suitable boom gate, we didn’t, so they asked us to build one. We then put all of our effort and extra resources into creating exactly what the customer wanted,” Keith says.

For Keith, being so close to the customers enables him to know what they are looking for in a product. “You know when something is bad and you know what your customer is looking for. I’ve been selling the products and solutions so I know what works,” he says.

After the success of the first bespoke product, Capstone was then presented with the challenge of engineering a mini dock leveller. “We had a supplier for dock levellers but they struggled to deliver the level of customisation our customer needed. So we gave them a lead time of 14 weeks and engineered and manufactured the

Captstone equipment is designed in Australia for Australian conditions.

MHD MATERIALS HANDLING

docks in house ourselves from that point on.

We have combed the globe and travelled the world trying to find the best way to build a solution,” Keith says.

The project was not without its challenges, Keith recalls, but one thing that he acknowledges is the flexibility that working for a business such as Capstone Industries allows.

In this instance, we installed four of the mini dock levellers and they have been working in place now for two years without issue, Keith says.

“One of our key strengths is our flexibility, generated through years of industry experience supported by highly experienced, strong engineering. It’s the bloodline to giving a quality product. Any product that we design, we can confidently say will be suit our customer’s needs.

Keith reflects on what has been an extremely rewarded and challenging time over the past 24 months at Capstone. “When you move at this kind of pace, you learn something new every day. We’re constantly engaging with our customers and trying to find ways that we can offer a solution rather than just a product,” he concludes. ■

“

One of our key strengths is our flexibility, generated through years of industry experience supported by highly experienced, strong engineering. It’s the bloodline to giving a quality product.

”

Docking equipment plays a crucial role in many of Australia’s largest retail businesses.

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MHD SUPPLY CHAIN

TECHNOLOGY TO EMPOWER SERVICE Anthony Tanner, CEO at VicTas Freight Express sits down with MHD to discuss the recent investment in technology and expansion plans for the company.

F

or VicTas Freight Express, service is everything. “We are very hands on, we’re always available to our customers and we pride ourselves on offering a delivery service that our customers can rely on,” Anthony Tanner, CEO at VicTas Freight Express says.

VicTas Freight Express is a privately owned and operated Australian company established in 2010.

Core business activity is express delivery of

carton, skids and palletised freight into Victoria, Tasmania, Southern NSW and Canberra.

In 2017, the organisation expanded its service offering into South Australia driven by customer demands for the VicTas Freight Express experience in that region.

2018 saw VicTas Freight Express commence their technology transformation project with a clear agenda to implement a robust and developing technology solution for the benefit of its business, customers, drivers and network partners.

“Initially we were somewhat reliant on paper, with many manual processes. And while we were providing a great service to our customers, the business recognised that we needed to update our technology

to provide all stakeholders with accessible and accurate data they needed and as live as possible,” he says.

VicTas Freight Express conducted an RFP process that resulted in Freight Data International providing a cloud-based end to end solution.

“The solution now provides our staff, network and clients with total visibility from order to invoice,” Anthony says.

A further requirement was for the technology to be compatible with VicTas Freight Express’s customer’s ERP systems. “The Freight Data International system interacts with more than 30 different ERP systems globally” he says.

VicTas Freight Express is environmentally aware. “The software provides an integrated route optimisation

In 2017, VicTas Freight Express expanded its service offering into South Australia.

38 | MHD FEBRUARY 2020

MHD SUPPLY CHAIN

solution which has significantly reduced our carbon footprint through planning our routes and load utilisation in an efficient and smarter way. EDI messaging and mobility application have resulted in a 57% reduction in paper consumption which is assisting the business in achieving a greener footprint,” Anthony says.

For Anthony, technology allows our business to be proactive through the use of live actionable information.

“With our technology solution, nothing is invisible. From live customer consigning, freight scanning and online proof of delivery through to customer invoicing, reconciliation and accruals, the technology solution has impacted positively on our whole business,” Anthony says.

There are other benefits associated with this level of data. “With live information we can manage process, compliance and mitigate risk associated with Chain of

Anthony Tanner, CEO at VicTas Freight Express.

Responsibility,” Anthony says.

The staff at VicTas Freight Express have responded well to the change and Anthony says there is an added benefit of an easier way to report issues. “Reporting is now standardised throughout the business, with improved visibility and access to information, our staff can review and action something right away from a single source of truth,” he says.

Innovation and growth are important to VicTas Freight Express. “2020 will see the introduction of an Express Melbourne to Western Australia service, again driven by customer demand for the VicTas Freight Express experience” he says.

“With the expansion of our service offering, VicTas Freight Express is proud to announce we are rebranding to VT Freight Express in 2020, to better reflect our business model going forward, whilst remaining Proudly Independent and Proudly Australian,” Anthony says.

For Anthony, VicTas Freight Express is unique in that it is privately owned, safety focused, service driven and very much in touch with its core business and customers’ requirements. He believes that its offering is a true alternative to the tier one providers who are operating in the Australian market. ■ www.vtfe.com.au www.freightdatainternational.com.au

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MHD MATERIALS HANDLING

In some warehouses, automated forklifts are the main method of automation.

TRENDSETTER

As we move into a new decade, MHD catches up with Neil Beveridge, Product Manager – Automation at Toyota Material Handling Australia to find out what he thinks the major trends for logistics and warehousing will be in 2020.

T

echnology that was once inaccessible for many organisations, will now become the new norm, according to Neil Beveridge, Product Manager – Automation at Toyota Material Handling Australia.

“Technology is improving every single day. It’s not only more affordable but it’s also making very challenging tasks more and more realistic,” Neil says.

One major trend that Neil highlights for 2020 is large-scale warehousing, an environment where he sees automation and technology as essential components.

“Large-scale warehousing is really taking off. Warehousing has an everincreasing number of product lines which puts a lot of demand on inventory and stock taking. Creating a perfect environment to embrace automated solutions” Neil says.

The rise of e-commerce has changed the way that warehouses operate, which comes with its own set of challenges.

“It’s now much smaller orders, more frequently,” Neil says.

Warehouses typically used to operate 40 | MHD FEBRUARY 2020

only one or two shifts throughout a day, now with the increased volume and higher demands warehouses are starting to operate three shifts or 24 hours to cope, Neil says. “There’s been a huge rise in carton picking, which currently requires a lot of manpower to execute.”

Additionally, there is a move towards decentralising distribution centres, which also presents an opportunity for logistics providers and retailers to utilise automation.

“Some of the larger distribution centres are being built in less populated areas, due to cost of land or rent. What we’re finding here is that there tends to be a labour shortage in these parts of the country, particularly when looking for casual staff,” Neil says.

If an element of the process can be automated, then this allows for the same level of productivity, but with bare bones staff levels.

A further benefit is that as automation loops into the entire echo system, there is opportunities to analyse data and behaviour and make accurate picking

predictions. “There are some instances where demand is highly predictable, in these cases you can pre-pick a lot of orders rather than having a large labour force pick as much product as they can when the orders come in,” Neil says.

Many larger organisations, such as Woolworths and Coles, have very sophisticated automated systems in place already and automated forklift solutions

There is a number of smaller, automated solutions that SMEs can take advantage of.

MHD MATERIALS HANDLING

complement this larger operation.

“Automated forklifts play a crucial role, but it is part of a larger automated storage and retrieval system,” Neil says.

The automated forklifts would typically be receiving goods into the automated storage and retrieval system and then also dispatching from it, he says.

While this level of automation is not possible for smaller organisations, there is a number of automated solutions that SMEs can take advantage of. “There are many warehouses that may not be on the scale of the large-scale retailers but are still using automated solutions. In this case, automated forklifts are often the main form of automation. They can remove some labour cost and increase consistency of picking by using forklift automation and not spending big dollars on a large-scale system,” Neil says.

With the technology becoming more affordable, smaller players in the market can start to benefit from it.

“It’s in everyone’s reach now, instead of five years ago when it was quite inaccessible for smaller or medium sized-businesses,” Neil says.

Toyota Material Handling Australia will be expanding its offering in this space later in 2020, in addition to the current offering of a fully automated warehouse reach truck which has the capability of lifting up to ten metres making it ideal for larger warehouses.

“Later in 2020, we will be releasing a fully-automated very narrow aisle turret truck as well as

Neil says automated technology is now within everyone’s reach.

a selection of Autonomous Mobile Robots (AMRs),” Neil says.

As Neil predicts that automation is going to be the main trend for 2020, the organisation wanted to have more versatile solutions on the market. “The fully automated very narrow aisle turret truck is more for the large-scale warehousing where space is a premium.

Typically, in Australia we find that many warehouses use double-deep racking, which helps with storage but removes a lot of accessibility to stock.

However with the very narrow aisle turret truck warehouse operators can maximise their space utilisation which would otherwise be difficult to access,” he says.

The AMR offering also offers versatility as the cost is much less than a traditional automated forklift and they are smaller and more adaptable

to flexible environments.

In addition, after the acquisition of Vanderlande in 2017, Toyota can now offer the entire warehousing solution. “Vanderlande is a leading supplier for warehousing and large automated systems, so we can now lean on that expertise and experience when working out a solution for our clients. Whether that be redesigning a current warehouse so that automated solutions can be introduced or building one from the ground up, we can do it all,” Neil says.

This year is a big one for automation, Neil says and he is excited about launching some of Toyota’s new solutions to market. ■ www.toyotamaterialhandling.com.au Freecall 1800 425 438

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MHD SUPPLY CHAIN

2020 SET TO BE THE YEAR OF COMPLIANCE 2020 for the shipping industry brings with it compliance issues from both the IMO and the national regulator.

Below Alison Cusack, Principal Lawyer at Cusack & Co and Australian President of Women’s International Shipping & Trading Association, looks at two key issues affecting the shipping market in 2020.

I ALISON CUSACK PRINCIPAL LAWYER AT CUSACK & CO AND AUSTRALIAN PRESIDENT OF WOMEN’S INTERNATIONAL SHIPPING & TRADING ASSOCIATION

MO SULPHUR CAP 2020 INTRODUCED ON 1 JANUARY 2020

What is it?

The International Maritime Organisation (“IMO”) has brought in new regulations to further reduce sulphur oxides (Sox) emissions from ships. This is done via Annex VI of the International Convention for the Prevention of Pollution from Ships (known as the MARPOL Convention). This latest regulation requires the limit for sulphur in fuel oil to be reduced to 0.50 per cent mass by mass.

The designated areas can be located on the IMO website which has comprehensive information about the history and current regulations for the Sulphur Cap. Prior to this, the permitted sulphur content was 3.5% which means these new regulations (now in force since 1 January 2020) are a significant reduction in permissible sulphur content of ship fuel. This will lead to major environment and health benefits not only for those living close to ports and coasts, but globally.

How are carriers responding?

Carriers have been choosing between a. Alternative fuel sources (such as LNG or biofuels) b. O pting to purchase lower sulphur content fuel (which has been a challenge for the fuel industry in terms of guaranteed supply at required locations – supply vs demand) c. R etrofitting the vessel’s funnels to “scrub” the excess sulphur from the ship’s output a. Closed scrubber b. Open scrubber What does it mean for you?

This can mean a variety of impacts on

42 | MHD FEBRUARY 2020

the end client.

Freight rates: The most obvious is that the can be an increase in Bunker Adjustment Factor (“BAF”).

If your rates are freight + BAF + other charges then the BAF presents a floating risk depending on the carrier’s cost requirements at the time.

If your rates are “all-in” you may not be affected by a change in BAF. However, the relevant bill of lading terms and conditions, FMC contract or tender contract may allow the ocean carrier to pass on costs associated with government regulations, which could conceivably include costs associated with sulphur compliance.

Disruption to the supply chain As with any new compliance regulation, interruptions can occur whilst the new regulations come into effect.

The follow could present interruptions to the supply chain • Lack of availability of fuel at required ports • Failure of scrubbers rendering the vessel non-compliant • Non-compliant vessel being detained by relevant port authority • Machinery breakdown due to alternative fuel use (unlikely but possible) What steps can you take to minimise your risk?

You can seek to minimise your risk by ensuring your freight rates (and if possible contracts) are covering the effect of a sulphur related incident on your cargo.

Ideally, the freight rates will not be impacted by cost recovery of the carriers on the retrofitting and/or more expensive fuel. Additionally, if there is a detainment of vessel (which your containers are on) that you have disaster recovery options open to you,

MHD SUPPLY CHAIN

including airfreight of actual or replacement cargo for those businesses operating a just in time business model.

PART X REVIEW – THE CASE FOR LINER SHIPPING Background Those that move goods in containers would be familiar with the concept of consortia, or liner agreements. Essentially, containerised ocean carriers have banded together to form a liner trade. They contribute their own vessels (whether owned or chartered) and use this to efficiently form a weekly service to/ from Australia. This gives the ocean carriers guaranteed space on each vessel that calls, regardless that it is owned and operated by a competitor.

Of course, this behaviour (but for Part X protection) is a blatant cartel. No other industry is allowed to sit in the room with multiple competitors and work out how to efficiently (resources and cost) provide a service to their customers.

This is where the Part X protection comes in. Cartel conduct is prohibited by Part IV of the Competition and Consumer Act 2010 (Cth) (formerly known as the Trade Practices Act 1974 (Cth)) (the “CCA”). To be protected from Part IV prosecution by the Australian Competition and Consumer Commission (the “ACCC”) which is the relevant regulatory authority for the CCA there is a legislative provision contained within Part X of the CCA to provide protection from Part IV prosecution.

How does it work?

The mechanism for obtaining this protection is as follows: • Consortia members get together to outline their proposed service (either in an Memorandum of Understanding or an entire consortia agreement) • The lead line files for provisional protection of this agreement with the Registrar of Liner Shipping.

• Once granted, the lead line negotiates with the designated shipper bodies (one for exports and one for imports) over a period of 14 days.

• Once the negotiation period with the designated shipper bodies is concluded, the lead line files for final filing with the Registrar of Liner Shipping.

• Once approval is granted, after a period of 30 days may the consortia commence to trade.

Essentially, there is a legislative timeframe of 3 – 4 months between inception and execution.

The process is fairly straight forward

“

No other industry is allowed to sit in the room with multiple competitors and work out how to efficiently (resources and cost) provide a service to their customers.

”

(although I wouldn’t encourage a novice to attempt it) and relatively cost effective.

The positives of retaining this legislation is that the industry (including the wider industry) is aware of the protections, and legislative stability can assist in stability in trade.

The catalyst for proposed change Of course, as containerised shipping is the only Australian industry permitted to engage in such otherwise cartel behaviour, it has received a lot of criticism. Most recently, the Harper Review which engaged in a root and branch review of the Australian competition legislative framework recommended a repeal of this legislation with a move towards a class exemption system.

Since that report, the ACCC now has the ability to grant class exemptions which would enable the government to move ahead with the repeal of Part X legislation (should it wish).

However, the ACCC, noting the unique nature of shipping, and the public interest in the benefit of having a robust shipping industry, has now sought submission on the proposed class exemptions.

From the ACCC website: “Australia’s Part X regime is one of the most permissive of its kind among developed countries, several of which have recently moved to scale back their own competition exemptions for liner shipping,” ACCC Chair Rod Sims said.

“These sorts of exemptions have become harder to justify, as cargo ships have become bigger and the industry has consolidated.”

“We recognise, however, that some limited co-ordination between liners visiting Australia may be in the public interest, by supporting efficient shipping services. This consultation process will allow us to examine how liners co-ordinate, so we can make sure the proposed class exemption would only apply to conduct that is clearly beneficial,” Mr Sims said.

“We are also keen to hear from the industry about whether the class exemption should extend to collective bargaining by cargo owners and their representatives,” Mr Sims said.

What can you do?

If you have a concern about the change in how lines will operate (including the retention of the dedicated weekly service) you should contact your relevant designated shipping body – depending if you’re exporting or importing and discuss with them any submissions that will be made to the ACCC. Deadline for submissions is 28 February 2020. n MHD FEBRUARY 2020 | 43

MHD E-COMMERCE

THE RISE OF CLICK AND COLLECT

Australia Post has established a large network of click and collect locations.

Retailers are exploring new ways of offering convenient delivery options for online customers. The method of click and collect is experiencing steady growth here in Australia, following the footsteps of consumer behaviour in the UK. But what does this mean for logistics providers?

A

ustralian retailers are starting to embrace the move towards more convenient delivery options for consumers. One offering that many businesses are exploring is where the consumer purchases their items online, but they collect either instore or at a convenient location for them – more commonly known as ‘click and collect’.

The rise of more convenient shipping options for consumers goes hand-in-hand with the growth of e-commerce, says Justin Dery, CEO of Doddle APAC. “The current appetite for online shopping here in Australia is where it was four or five years ago in the UK. E-commerce currently 44 | MHD FEBRUARY 2020

accounts for ten per cent of total retail spend here in Australia, whereas in the UK it’s 18 per cent,” he says.

According to Justin, this presents a great opportunity for Australian retailers to explore click and collect options for their consumers. Currently, only 42 per cent of retailers offer click and collect options in Australia, compared to around 85 – 95 per cent in the UK, Justin says.

Click and collect offers a unique advantage for Australia. Where in the UK consumers have begun to expect free delivery, Australians are used to having a cost associated to delivery,” Rachel Caton, Sales & Marketing Director at Doddle APAC say.

“Australia is a very different geographically to the UK, because of the wide-spread population here, the cost of logistics is a lot higher. Having the ability to consolidate deliveries into pick up locations or instore gives retailers an opportunity to reduce their delivery cost and ultimately look at ways that they can offer a free delivery option that is sustainable,” she says.

With the recent arrival of e-commerce giant Amazon, Australian expectations may start to trend towards the expectation of free delivery, Rachel says. However, she says key to success will be how a retailer approaches customer service and whether they offer

MHD E-COMMERCE

a consistent good service.

Here in Australia, Doddle is working with Australia Post to establish a large network of click and collect locations. “We’re building a network of convenient pick up and return points around Australia which consists of Australia Post’s network of 4,500 post offices, as well as locker banks and thirdparty locations,” Rachel says.

The third-party locations include many big players in the retail game, including IGA, Priceline and Myer. For many of these retailers, there is an added benefit of encouraging customers to come in store to collect online purchases.

“Host partners often benefit from more foot traffic in their store. Research from the UK revealed that in department stores and supermarkets 70 per cent of customers that visit the shop to pick a parcel up will buy something else,” Rachel says.

This also allows consumers to combine picking up their online purchases with other tasks, rather than sitting at home waiting for a delivery. “We’ve all been carded before, and we know it’s a huge bug bear. Click and collect gives consumers the confidence that their order is where they want it, when they want it,” Justin says.

Australia Post’s Collect & Return network includes 4,300 post offices, lockers in more than 350 locations and 15,000 street posting boxes and while the e-commerce spend is largely across the Eastern Seaboard, these locations enable customers in more remote areas to have a convenient pick up spot too, Justin says.

“One of the great things about partnering with Australia Post is that they are nationwide. But in terms of the third-party relationships we have a mix across metro, urban and rural areas and this is constantly growing,” Justin says.

Consumers can combine picking up their online purchases with other tasks, rather than sitting at home.

“

Having the ability to consolidate deliveries into pick up locations or instore gives retailers an opportunity to reduce their delivery cost and ultimately look at ways that they can offer a free delivery option that is sustainable.

”

According to Ben Franzi, General Manager Parcel and Express Services at Australia Post the partnership is about making it easier for Australians to shop online. “We are determined to provide our customers with services that make their online shopping experience seamless and even easier to access,” Ben said.

If Australia is set to follow in the footsteps of the UK, then more retailers will be looking for innovative, sustainable and cost-effective ways to offer click and collect over the coming months. This presents an opportunity for logistics providers to offer seamless integrated solutions whereby deliveries can be consolidated into parcel hubs allowing the consumer to take control of the last-mile. ■

MHD FEBRUARY 2020 | 45

MHD TECHNOLOGY

Access to real-time data is crucial in today’s on-demand economy, Doug says.

GETTING ONBOARD WITH REAL-TIME DATA A long-established local player in the Warehouse Management System space reveals how its solutions are designed to work for the big players, as well as SMEs.

H

ighly accurate, real-time information is critical in logistics and supply chain. According to Doug Stracey, Managing Director of TallShips Solutions, logistics operations can only cope in today’s “just in time, deliver on demand economy” by having access to real-time information.

“This level of data allows for rapid and effective decision making as well as the use of resources with maximum efficiency and flexibility needed to thrive in today’s fast-paced economy”, Doug says.

Many organisations look to the larger enterprise resource planning vendors, but according to Doug, these solutions are not always effective for SMEs. “We offer truly scalable and dynamic solutions for today’s lean business environments. We work with customers as small as a two-man band, but also cater for some major retail players”, he says.

TallShips Solutions was established in Sydney in 1996 and its first customer was a major leader in the retail space in New Zealand. “While we offer a scalable solution, which is often attractive to SMEs, our first customer was The Warehouse Group in New Zealand, and they remain a customer to this day”, Doug says.

With more than 20 years of experience 46 | MHD FEBRUARY 2020

in software development and warehouse management systems, TallShips offers a solution that has been improving and adapting to customer demands over the last two decades. “We adapt as our customers do”, he says.

The software can work with a number of different innovations, including RFID, automated storage and retrieval systems and bomb bay sorters. “We know that we operate in a highly automated industry and we work with our customers to ensure that their software allows them to adapt and improve”, Doug says.

TallShips has successfully implemented and currently supports a wide range of warehouse management systems throughout Australia, New Zealand and Asia. “Our experience covers a variety of industry verticals including FMCG, petrochemical, furniture retailing, fashion, printing and third-party logistics providers,” Doug says.

From a small company who specialise in raw dog food in Australia, to a largescale mining operation in Mongolia, Doug says every customer benefits from access to real-time information.

“Our Mongolian customers can look at a truck on a highway and can find out the asset value of that truck remotely.

A spreadsheet cannot give that level of information”, Doug says.

The team at TallShips Solutions

has extensive experience in software development and also warehouse management systems. “We’ve been in this space for a long time and we are committed to adapting to our customer’s requirements as they change”, Doug says.

He uses the example of The Warehouse Group in that the software they are running TallShips stopped selling a few years ago, but they continue to support the organisation with any issues or updates needed. “We have some great specialisation in house so we can provide support to all of our customers regardless of when they introduced the software”, he says.

Support and customer service is key to TallShips’ success, according to Doug the organisation has a number of longterm customers who have been using the platform for many years.

“We are with our customers from day one until they go live, and then we go back again within a month to see how they are using the system and to recognise ways in which we can improve or educate. We see it as an ongoing relationship. It’s not a quick sale for us, it’s a long-term partnership”, Doug says.

An added benefit, Doug says, is that the team is based locally. “We are a local solutions provider, we understand the Australian and New Zealand markets and we can offer support when needed.” ■

MHD Supply Chain

2020 FORKLIFT SURVEY IS NOW LIVE! Complete this year’s survey at www.mhdsupplychainnews.com.au/forklift-survey

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(Total Value $799.90) Survey to commence on 14th February 2020 and conclude on 31st April 2020.

MHD TECHNOLOGY

EVOLUTION IN SCANNING As the first brand to offer a full-range of Google certified devices, Taiwanese brand Cipherlab is leading the way in the RFID space.

MHD finds out more.

R

adio-Frequency Identification (RFID) provides the ability to identify, track and trace every product with a serialised number.

According to GS1’s report RFID in Retail, the technology can significantly improve inventory management and processes, as well as enhance visibility across the supply chain.

Similar to a barcode, an RFID tag contains unique identifiers which correspond with inventory records.

However, RFID offers significant benefits over traditional barcoding, Chin Toh, ANZ Manager at Cipherlab says.

Whereas with regular barcoding, each code has to be individually scanned in order to be registered, RFID scanners The RK25 operates on Android, a familiar interface for many users.

48 | MHD FEBRUARY 2020

operate wirelessly, so you can simply point a scanner at a group of items and it will register every single one without having to individually connect.

“An RFID scanner can scan up to 700 plus items per second, meaning you could even scan an entire room of product in one go,” Chin says.

Cipherlab was founded in 1988 and is a global provider of Automation Identification and Data Capture Solutions (AIDC). The organisation is based in Taiwan, with offices in China, USA and the Netherlands.

Specialising in scanning, mobile computing and business process design, the organisation provides solutions for supply chain and retail as well as

other verticals. The business employs more than 300 people – including 150 engineers.

“We’ve been in the Australian Market for 20 years now. We have our own factory in Taiwan and develop all our solutions there. From research and development to testing to the final product we carefully develop the best solutions for our customers,” Cesar Lai, Senior Sales Director at CipherLab says.

In addition, Cipherlab has its own in-house software team and ecosystem, ensuring that every client has the support they need to implement the technology. The Cipherlab’s Software Ecosystem (WheeCare, ReMoCloud, Cipherlab Suite) is for device management and helps to maximise efficiency and productivity for users, Cesar says.

The organisation also formed a partnership with Google in 2015, and became the first AIDC provider in the world to gain all Google certifications for this sector.

The certifications ensure that all products are compliant to Google’s standards, they include Mobile Application Distribution Agreement (MADA), Google Mobile Service (GMS), Android Enterprise Recommended (AER) and Enterprise Mobility Management (EMM).

The partnership ensures that all Cipherlab products are up-to-date with Android OS, ensuring that they are the first devices to receive updates, the apps remain protected and Google ensure that they are always working correctly.

“We have to be compliant with Google’s terms and conditions. We have to build all our devices to a certain ruggedized standard, so that they are suitable for industrial environments in addition to ensuring that we are complying to the standards for regular

MHD TECHNOLOGY The RK25-UHF consists of two different componenets, the RK25 mobile computer and the UHF RFID readier.

security updates,” Chin says.

The AER requirement specifies that all devices are built to rugged specifications, including a 1.2 metre drop resistance. They also have an extended lifespan with a 90-day security update that is guaranteed for five years after launch. “This gives our buyers the confidence that their device will remain current and not become outdated in its early life,” Chin says.

Cipherlab’s main offering in this space is the RK25 UHF reader. The solution consists of two different components, the RK25 mobile computer, and the UHF RFID reader.

“The user just simply attaches the RK25 device to the RK25 UHF RFID reader whenever RFID capabilities are needed,” Chin says.

The Cipherlab offering differs from its major competitors in this space in that when the two separate devices are connected the connection is a physical one, rather than through a wireless connection like Bluetooth.

“The physical connection is faster and much more stable, particularly in a warehouse environment where you have a lot of metal so a Bluetooth connection may have a lot of interference,” Chin says.

The RK25 UHF RFID reader can scan with a range of up to eight metres and can scan at 700 plus tags per second with up to ninehour battery life. If the area that needs to be scanned is more condensed, then it is very simple to tune the radius to the area that you want to be scanned, Chin says.

One of the advantages of using Android over

“

The physical connection is faster and much more stable, particularly in a warehouse environment where you have a lot of metal so a Bluetooth connection may have a lot of interference.

say IOS or Windows, is that many warehouse pickers are very familiar with the interface and the way it works. “People use Android in their everyday life, and they are often very confident users. If they can operate something that they are familiar with then it makes their job a lot easier,” Chin says.

Cipherlab products are available through a number of different resellers in Australia including Wise Systems, Scopelink, Datapel and TracknTrace – for a full list, visit page 56.

Please visit www.cipherlab.com for more details and email ausales@cipherlab.com to organise a demo. Alternatively, you can also contact one of Cipherlab’s authorised resellers - see page 56. ■

”

RFID scanners operate wirelessly, so you can point a scanner at a group of items to register them.

MHD FEBRUARY 2020 | 49

MHD MATERIALS HANDLING

Jungheinrich will continue to grow its portfolio in Australia.

2020: THE YEAR OF AUTOMATION Christian Wurzinger, Jungheinrich Australia’s Director of Logistic Systems shares his insight on how this year’s intralogistics solutions trends will skyrocket Australia’s global presence in the logistics industry.

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ccording to Christian Wurzinger, Jungheinrich Australia’s Director of Logistic Systems, global digitalisation is changing the daily operation of the logistics industry for good.

Reflecting on warehouse management system changes, Christian Wurzinger says, “20 years ago if you ran through a warehouse, you’d be given a piece of paper with the location you needed and it was hard to find your way around driving a truck, but these days an automatic truck follows you to the next picking location.”

Warehouse managers are facing increasing market pressures from commoditisation, supply chain transformation and rising customer expectations.

“Advanced technology has helped our equipment become more efficient than ever and the entire logistics sector has changed for the better,” he says.

Originally from Austria, Christian has been overseeing Jungheinrich’s Logistic Projects Business in the Asia-pacific region (APAC) since 2017.

Prior to moving to Australia, he has monitored projects and implemented successful logistics solutions throughout China and the APAC region. Christian brings a wealth of knowledge to his role as Director Logistic Systems as he 50 | MHD FEBRUARY 2020

approaches his 20th year as an industry leader across global markets in Europe, North and South America.

The industry expert says 2020 will be a momentous year for Australia as Jungheinrich continues to implement world leading intralogistics solutions as the market moves towards a fully automated future.

NEW PORTFOLIO SETS NEW POSSIBILITIES Jungheinrich’s technical innovations are represented by partner companies in more than 120 other countries, either via direct sales units or partner sales units.

Since Jungheinrich acquired NTP Forklifts Australia in 2015, the German company renowned for mastering all areas of intralogistics has an estimated revenue figure of close to €4 billion.

At only five years old, Christian says Jungheinrich Australia has the potential to be the future leader in logistics systems in the national market.

After the success of implementing processes and procedures in the global organisation’s core area manual material handling equipment (MHE), the Jungheinrich business model was rolled out.

“The biggest achievement in 2019 was to get the structural and organisational

setup and inauguration of the Logistic Systems business unit done by mid 2019, and now that is complete and fully laid out across Australia,” Christian says.

From his international exposure Christian says “Australia is on par with technology today, Jungheinrich is investing and ahead on trends, a lot can be learnt from the Australian market but there are some areas where there is some catching up to do.”

This year, Jungheinrich will continue to broaden Australia’s portfolio to be a leading competitor in global markets.

“Jungheinrich Logistic Systems is very happy to announce that we can offer our entire AGV Solution Portfolio, Very Narrow Aisle (VNA) solutions and services all over Australia, with local resources, support and management, the next big step for Jungheinrich Logistic Systems will be the introduction of our own Jungheinrich racking solutions and products in 2020,” Christian says.

GLOBAL TREND TOWARDS AUTOMATION Christian says there is growing demand for conventional Automated Guided Vehicles (AGV) solutions in Australia, due to e-commerce in full automation.

“Current trends relevant to Jungheinrich Logistic Solutions is the

MHD MATERIALS HANDLING

rising demand of VNA solutions and AGV solutions in the Australian market, which mirrors the global trend for AGV solutions,” he says.

Conventional AGV solutions are in high demand across Jungheinrich facilities nationally. “The last few years Australia has been catching up to the global market, but now we can see Australia is really booming in automation and this will continue to grow this year,” Christian says.

Warehouse automation is an effective way to gain efficiencies, cut costs and scale operations. Jungheinrich Logistic Systems unit Australia says AGVs have become integral to many organisations making the transition towards joined up intralogistics processes.

Christian says using an AGV, loads can be transported on pre-determined routes, fully automated, safely and, thanks to laser navigation “with absolute precision.”

This is saving logistics managers time and money, especially as part of standardised routine operations, and significantly reducing the risk of damage to both equipment and stock in the warehouse; all while enabling efficient and reliable transport processes, and optimised utilisation of resources.

Whilst there are upfront costs implementing automated solutions, Christian says the total cost of ownership savings are recognised in the mid to long

term. He recommends organisations to start with the automation basics, such as data collection, material flow analysis, process adjustments and then deploying new technologies, such as AGV’s. People want everything in one place, which sets Jungheinrich apart from competitors as we are the single source solution partner for their entire warehousing or intralogistics needs” he says.

ALL-IN-ONE INTELLIGENT SOLUTIONS Jungheinrich Logistics Systems are innovating the relationship between individuals, machine and software to ensure that “everything works in harmony,” Christian says.

Combining product innovation with the information flow, material flow, and linking these through digitalisation, enables Jungheinrich to create the right solution for each customer’s specific business drivers.

Modern technology allows people to have everything at their fingertips and keeping up with today’s fast paced and highly efficient global market is Jungheinrich Logistics Systems priority.

That’s why “we are one global supplier that applies technology to customise a solution all in house, based on the unique requirements from every customer,” Christian says.

Christian predicts cuttingedge technology combined with

intelligent intralogistics solutions will revolutionise growing industries.

The Jungheinrich Asia-pacific region continues to be a leading provider for electronic, furniture and 3PL distribution centres.

Jungheinrich has provided Hello Fresh with a fleet of equipment to help the company focus on materials handling efficiency to help the business maintain their high presence in the food industry. Christian says due to the broad spectrum Jungheinrich Logistic Systems offers, “enquiries from leaders from multiple industry sectors, like the grocery and dairy sector, 3PL’s and manufacturing are interested in our solutions that can help eliminate repetitive tasks and cut costs.”

Jungheinrich is one of the top five racking solution providers in the world.

The Logistic System Unit Australia “Is excited to launch our own global racking solution to the Australian marker later this year, that’s been in practise in Europe facilities since the 1960’s,” Christian says.

Old solutions that have been in practise for years will continue to turn automatic and only get more efficient with improvements Christian says.

“2020 will see a lot of developments in Australia, we’re thinking outside the box and receiving international exposure here, so I think the entire logistic sector will keep moving forward.” ■

Christian predicts cutting-edge technology combined with intelligent intralogistics solutions will revolutionise logistics.

MHD FEBRUARY 2020 | 51

MHD MATERIALS HANDLING

EXPLORING REFINEMENTS TO IMPROVE EFFICIENCIES Bob Griffin, Director of BAC Systems offers his advice for how to improve workspaces to create more efficient picking environments.

B

AC Drawer Storage Cabinets are well known internationally, being recognised by many as the best solution for non-powered spare parts storage. There are some, though, who might recognise the Blue BAC Diamond but may not know the benefits it represents. For those who have not yet experienced the blissful transition between a stressed, chaotic warehouse to a compressed and well-ordered BAC Storage Solution, the concept of threedimensional storage upon which the drawer system is based may come as a type of storage epiphany.

In order to optimise business operations and reduce costs, modern companies seek refinements in all areas of logistics and inventory management. A BAC High Density Storage Solution provides just such an opportunity to improve any workspace.

BAC Drawer Storage Cabinets address some of the key areas that result in parts storage and picking operations within a business becoming more profitable.

SPACE OPTIMISATION IN THREE DIMENSIONS Real estate is one of the biggest costs to be managed by business operators, and, when a parts store is bursting at 52 | MHD FEBRUARY 2020

the seams, the only solution may appear to be to source a bigger building. BAC Systems aims to prevent this outcome by compressing your stock dramatically, and in so doing, relieving the stress on your parts store. This is achieved through the concept of three-dimensional storage.

In a generic storage system that uses shelving, perhaps with bins or tubs on the shelf to hold smaller spare parts, a typical layout uses the length of the shelf but doesn’t consider the depth of the shelf, and rarely considers the height. The boxes are mostly of one or two standard sizes, and you find that many of these boxes are far too large for the item being stored. Ultimately, you find that storage layout is configured in a single dimension only, that dimension being down the length of the shelf. Occasionally, where plastic boxes are used that have internal dividers, it can be considered that a second storage dimension has been configured. As boxes on shelves only give you access from the front, rather than from the top, it is impossible to fill the boxes, and any dead space behind the boxes on the shelf is wasted as it is not practical to continually pull out boxes to get what is behind.

A BAC Drawer Storage Cabinet makes far better use of the storage

volume available. BAC Drawer Storage Cabinets are assembled in a modular fashion and are thus configurable in all three dimensions.

The location storage height is configured through the fact that drawer heights are selectable. In a BAC Drawer, you can fill the location to the brim as access is from the top, rather than the front. No usable vertical space needs to be wasted at all.

Within a BAC Drawer, you are not bound to a set location size as the internal partitions and dividers are adjustable in each direction in 25mm increments. You will quickly see that this modular approach to location sizing will allow you to eliminate unnecessary dead space as you can mix large locations with small locations within a single drawer!

The drawers themselves are rigid and use large roller bearings, being able to hold quite significant weights. This internal partitioning accounts for the other two configurable dimensions and, when combined with the configurable drawer heights, totals the three dimensions in which you can adjust your modular BAC Drawer Storage Cabinet.

While each warehouse is unique, the results of many of the warehouse conversions to a BAC Drawer

MHD MATERIALS HANDLING

ORDER GAINED IN FIVE DIMENSIONS

Putting your parts away in a drawer, does not mean that you will lose them, Bob says.

Storage Solution show that it is not unreasonable to hope for your inventory of small-to-medium parts to be compressed to as little as a third of its original footprint, if your original solution is your typical onedimensional shelf storage system. BAC Systems technical sales representatives come to your site to survey your stock and your operational methods in order to advise you on different solutions and approaches you can adopt. You can be confident with a carefully designed BAC Drawer Storage Solution.

In a BAC Drawer, you can fill the location to the brim.

Putting your parts away in a drawer does not mean that you will lose them, although you may have over 70 other different lines in the same drawer. By putting your part in a single location within the drawer, you have achieved the first step to creating an orderly and predicable storage system: you have created a unique storage location for that part.

The location can be configured to fit that part, allowing for variances in your stock levels. Additionally, in a BAC Drawer, the internal dividers all have a flange dedicated to labelling the location. A location becomes unique and recognisable.

In a large and busy warehouse with 30k individual lines or more, the BAC Drawer Storage Cabinets will seamlessly integrate with your existing inventory management system. While the exact method is always different and dependent upon the individual and the software being used, the basic approach is to apply a five-dimension location identification system to help you find your part location without any doubt. We have already discussed the basis of the last three dimensions, which are 3) the particular drawer within a cabinet, 4) the column within the drawer, and 5) the location within the column. These three location identifiers are closely related to the part location size configuration

parameters already outlined.

The remaining two location identification dimensions are clear when you stand in a room with multiple rows of cabinets. Dimension 1) is the identification of the row, and Dimension 2) is the identification of the actual cabinet within the row.

With these five dimensions (Row, Cabinet, Drawer, Column, Location) you will always be able to find any particular drawer location within a warehouse. These five can be represented with a simple 5 to 10-digit alpha-numeric code that can be recorded against a part number in your database.

INNOVATION THROUGH SIMPLICITY The team at BAC Systems recognise that operational sustainability is achieved through creating a simple approach that is maintainable. After rescuing thousands of parts stores of all sizes over the last 43 years, BAC Systems have realised that a truly innovative storage solution is a simple one, set up correctly and systematically from the beginning, and designed with allowances for growth and flexibility that do not compromise the basic simple structure of the storage. Many warehouses and parts stores lack the foundation of such a logical approach, evidenced by the space-stress and even the chaos found in so many parts stores who engage BAC Systems.

The success of this simple modular approach, with a unique location for each individual item and reasonable allowances for growth and change, is proven to be a sustainable approach when the team from BAC Systems returns to a business 10 or 20 years after they helped them establish a BAC Drawer Storage Solution in their parts stores and warehouses. They consistently find that these stores have increased, or changed, their inventory but that they are still maintaining order and that their stores are generally tidier than they were before they adopted BAC. To find out how to relieve the pressure within your parts store, or to conquer the chaos of a disordered inventory, give the BAC Technical Sales Team a call to arrange a site visit and survey. ■ MHD FEBRUARY 2020 | 53

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MHD PRODUCT SHOWCASE

PRODUCTS RK95 SERIES INDUSTRIAL MOBILE COMPUTER CipherLab’s RK95 is a powerful handheld terminal that steps up the data collection game in the warehouse environments. Running on the latest Android operating system and today’s most powerful processor, the RK95 also comes with Google enterprise-oriented certifications to ensure the device’s productivity stays efficient for now and the future.

Crafted in excellent reading capability, wireless connection, industrial ruggedness, user interface and power consumption, the RK95 is surely an investment that is smart and cost effective for your business. The Google AER and GMS certified RK95 comes standard with Android 9, Octa Core 2.2GHz CPU, 4GB/64GB, 2x MIMO for seamless WiFi connectivity, a choice of 38 or 52 keypad and an option for extended long range scanner.

Industry use: Warehousing Distribution centre Manufacturing

WHERE TO BUY CIPHERLAB www.cipherlab.com ausales@cipherlab.com +61 431 363 688 AUTHORISED RESELLERS www.barcodes.com.au sales@barcodes.com.au +61 1300 800 999 www.comwareptyltd.com.au sales@comwareptyltd.com.au +61 8 8431 1111 www.datapel.com sales@datapel.com +61 1300 137 082 www.disttech.com.au sales@dexionsystemsservices.com +61 2 8259 0367

RS51 SERIES RUGGED TOUCH MOBILE COMPUTER With the development of e-commerce, delivery speed is in demand for industries such as transportation and logistics and direct store delivery. A smarter and faster solution is needed. CipherLab’s RS51 series inherited the advantages with enhanced functions to provide smarter and more efficient operation for business’ every-day usage.

As an Android Enterprise Recommended device users will have support for multiple versions of the Android OS within its product life cycle. It is upgradable to later Android version. The Android 8.0 with GMS certification equips advanced advantages in operation speed, power efficiency as well as data security. Along with rugged form factor and qualified data capture performance, RS51 gives users extraordinary mobility inside and outside the four walls. Always have users to reach and to be reached for real-time communication, to maximize productivity, efficiency and ultimately optimize customer service.

CipherLab’s RS51 series is the device that perfectly blends commercial smartphone usability and enterprise functionality. The 4.7” display with bare/gloved finger and stylus inputs enhances user experience with operation convenience. Streamlines data capture with simply one device. It supports various data collection of 1D/2D barcodes, RFID, and NFC applications. On top of that, RS51 is built with the most reliable Wi-Fi and 4G/LTE connections for constant backend system data transmission and realtime communication. Additionally, accessories are backward compatible with RS50 series which provides a lower overall Total Cost of Ownership (TCO) and maximize the device investment.

Industry use: Transportation and logistics Direct store delivery Field mobility

56 | MHD FEBRUARY 2020

www.labelprintscan.com.au contact@labelprintscan.com.au +61 1300 571 551 www.ojh.com.au info@ojh.com.au +61 1300 764 788 www.peacocks.com.au enquiries@peacocks.com.au 1300 723 283 www.radterm.com.au sales@radterm.com.au +61 3 92404200 www.satoaustralia.com enquiries-aus@sato-global.com +61 3 8814 5300 www.scopelink.com.au info@scopelink.com.au +61 2 8006 6644 www.thericgroup.com.au sales@thericgroup.com +61 3 9545 0404 www.trackntrace.com.au sales@trackntrace.com.au +61 2 8091 1942

MHD PRODUCT SHOWCASE

AUTOPILOT STACKER The SAE ‘Autopilot’ is the definitive machine when transitioning from manual operations to automated movements, it is ideal vehicle for simple Autonomous solutions. The SAE is offered in both a fork-over and straddle design to suit the large range of pallets/load carriers utilised within the Australian material handling industry. Due to its compact size and versatility it can be used areas such as production, small warehouses, machine tending, palletising etc. The SAE also comes equipped with a Li-Ion battery and automated charging, enabling a hands-off approach to charging operations.

CONTACT

Being hybrid AGV based on a manual stacker with a fully integrated navigation and safety system. The SAE ‘Autopilot’ attains all the reliability and serviceability as with the manual version while inheriting all the added benefits of an automated vehicle.

NEIL BEVERIDGE

This SAE has the ability to offer the solution a simplistic finish while providing all the features that are expected from an automated process.

Mobile: +61 438 464 839

MHD Supply Chain

MHD SUPPLY CHAIN NEWS NOW ON LINKEDIN Follow us on LinkedIn Join MHD Supply Chain News for the latest news and insight www.linkedin.com/showcase/ mhdsupply-chain-news

Product Manager - Automation, FS Eng (TUV Rheinland) Toyota Material Handling Australia Pty Ltd Phone: +61 2 8706 6259 Neil.Beveridge@tmha.com.au

MHD TECHNOLOGY

INDUSTRY 4.0 READY As we enter the e-commerce age of fulfilment, John Butera, Logistics Automation Manager at SICK Australia presents some innovative solutions for revenue recovery.

L

ast year, Australia Post opened the largest parcel and mail facility in the Southern Hemisphere. The Brisbane Parcel Facility is able to process 700,000 parcels per day at full capacity.

The facility boasts two high-speed sorters that are capable of processing over 50,000 parcels per hour.

With the rise in e-commerce there has been a huge increase in the volume of parcels, as well as a decrease in the size of parcels, John Butera, Logistics Automation Manager at SICK says.

“We’re really in the e-commerce age of fulfilment now. The packages have completely changed, they are much smaller than they used to be, many are more like a satchel than a parcel,” John says.

This shift to a much smaller parcel presents some challenges for any logistics provider involved in the movement of goods. One area that SICK is improving the process for sortation facilities is through a variety of different sensors, with a particular focus on revenue recovery.

“When we talk about sensors in this area, we refer to both basic sensors as well as the more advanced kinds. What we would typically refer to as a basic sensor is now a lot smarter than it used to be. They now have the ability to communicate with much higher-level control systems,” John says.

In a sortation facility there are 58 | MHD FEBRUARY 2020

With the rise in e-commerce, there is now a huge increase in the volume of parcels. parcels with different surface tension, size, colour and weight – sensors help organisations ensure that they are identifying and tracking these parcels accordingly.

“The role of a sensor is to make sure that products are detected accurately and efficiently. With e-commerce, products are now being sorted and charged right down to the individual item, it is more important than ever to ensure that they are scanned accurately,” John says.

INDUSTRY 4.0 CAPABILITIES For John, a key principle of Industry 4.0 is trying to gather as much data and information as possible. “Even the much simpler sensors we offer now have the communication protocol to talk to high level controls,” he says.

One area that SICK is offering solutions

with regards to revenue recovery process is with Dimensioning Weighing and barcode scanning Solutions (DWS).

“This system provides efficiencies in this process of determining the parcel identification, weight and dimension in one step,” John says.

A common problem with parcels is that they need to be recalculated or recharged.

Sometimes they could be reported into the DC at a certain size but when they go through the system it turns out its much bigger, or even heavier, John says.

“When it goes through this system, it’s redetected, profiled and declined at that particular booking rate and there is a billing process – without this level of detection there would be revenue loss.”

It’s not just about the revenue recovery process, John says, but also about efficiency gains. “It helps the industry to

MHD TECHNOLOGY

build the business, once these kinds of supply chain processes are in place the entire system can run much more efficiently,” he says.

The requirements of e-commerce have made DWS more important than ever. “If you have a huge box that only weighs a few kilos, then you will charge it according to its weight if you only have a weighing system. But once you have a dimensioning system, you can look at whichever one is greater and then charge it accordingly,” John says.

SICK has also recently released the VMS5200, with this dimensioning sensor using laser technology a parcel that is less than 50mm in height can now be measured down to 20mm as a legal for trade device.

“Previously, any parcel below 50mm in height could not be measured and revenue recovery was not captured. Now organisations have the capability to measure a parcel below 50mm, so again there is that revenue recovery benefit,” John says.

Further advances in the DWS arena can now be realised with camera technology. “Camera technology is able to read much poorer quality barcodes than laser technology,” John explains.

For the likes of TNT and Australia Post, this can be of huge benefit. “If a parcel comes through the system, but is not identified, an image is captured and then goes to a server where its processed further by video coding or optical character recognition (OCR). The postcode can be read, either manually or by software, and then ensures it goes to its destination,” John says.

This also helps reduce the rejection rate, also increasing efficiencies. “A no read and an increase in reject rate can really slow things down - with sometimes 100s of parcels needing to be manually sorted. If you have the capability to reduce this, you can really improve efficiency across your entire process,” John says.

“

What we would typically refer to as a basic sensor is now a lot smarter than it used to be. They now have the ability to communicate with much higher-level control systems.

”

running at high efficiencies, sometimes 24 hours a day. We have recognised that by placing sensors along these conveyors you can significantly reduce downtime and breakdown costs,” John says.

The sensors John is referring to monitor velocity, vibration and temperature and determine what kind of effect a high level of frequency has on the entire system. “Our sensors can provide some kind of preventative notification that informs that the conveyor needs some attention before it breaks down,” he says.

SCALABLE SOLUTIONS SICK also recognise that when it comes to e-commerce, some organisations may not have the requirement for the full DWS system at first, but as they grow it is easy to add on different features.

“Our DWS solutions can be scaled accordingly, we always ensure that we are backward compatible. We build our systems so that they are modular so if someone was starting off and they just needed a sortation system for scanning, we can then provide the solution and later on down the track if they need to capture revenue loss we can add dimensioning as well as a scale,” John says.

As organisations operating in the e-commerce sector range from large-scale retailers to small start-ups, having the ability to scale up with this kind of technology is a huge advantage, John says. ■

TRACEABILITY AND DATA COLLECTION With the increase of traceability requirements, it’s even more important to know where a parcel is at all times, John says. “Once a parcel gets processed it then travels along a conveyor, being constantly scanned. Sensors allow the parcel to be checked numerous times and that information can be fed back to the consumer, enabling them to have total visibility of where their parcel is and when they can expect delivery.”

A further area that SICK has recognised a benefit for sensors in a logistics facility is in the monitoring of crucial parts of the operation, such as conveyors. “In some of these facilities they have metres and metres of conveyors

A key principle of Industry 4.0 is trying to gather as much data and information as possible.

MHD FEBRUARY 2020 | 59

MHD WOMEN IN INDUSTRY PROFILE

CREATIVE SOLUTIONS IN AN UNPREDICTABLE ENVIRONMENT all steps in the process have the potential to go wrong. For instance, extreme weather in the opposite side of the world can affect the delivery of containers in Australia. In the face of the challenges of this industry, I have to be flexible, I need to think creatively for solutions and I need respond to events and changes that may affect the delivery of a shipment, in real time. I love it, it keeps me on my toes.

What has been the highlight of your career so far?

I currently enjoy working with one of our clients, a large power and energy company. To date, I have worked with them to manage the delivery of all components for the construction of four solar farms in Coleambally, Tailem Bend, Numurka (that will supply clean energy for the Melbourne Tram system), and Sunraysia (this project will be the largest solar farm in South East Asia).

Aside from the scale of these projects, I find it rewarding to contribute to key sustainability projects in Australia that will shape our future.

Alessandra Heist is Business Development Manager and Project Specialist at VISA Global Logistics.

MHD catches up with Alessandra Heint from VISA Global Logistics to find out what she loves about working in the logistics industry.

H

ow long have you been in your current role?

My current role, held for about a year, is Business Development Manager and Projects Specialist. I focus on air and sea freight shipments including dangerous goods, oversized cargo, and large volume and time sensitive shipments for global and national projects. It has been a very challenging year set in a fast pace and when I look back, I feel a sense of pride for what I have achieved.

60 | MHD FEBRUARY 2020

What does a standard day for you look like?

Global and national freight projects are usually very stressful as they have a multitude of stakeholders and strict deadlines. Factory ready dates must align with shipping schedules and construction schedules. Late shipments for projects usually entail the loss of thousands, if not millions, of dollars for our clients. The shipping world is extremely volatile and unpredictable,

What do you like about working in the logistics industry?

I like the fast pace and dynamic environment of the logistics industry.

I enjoy the real, tangible connection of my work to global trade. I like tackling logistical challenges and nurturing strong relationships with my clients, partnering with them to achieve their goals.

What do you like about working at VISA Global Logistics?

I like working at VISA Global Logistics because they take innovation seriously, it is a company that is continuing to thrive because of this. VISA has our own freight management system, OneTrack, that has been designed in-house providing supply chain reporting and shipment visibility

MHD WOMEN IN INDUSTRY PROFILE

Alessandra finds working in logistics rewarding as she gets to contribute to projects that will shape the future of Australia.

“

I enjoy the real, tangible connection of my work to global trade. I like tackling logistical challenges and nurturing strong relationships with my clients, partnering with them to achieve their goals.

”

to our clients in real time. In addition to this, VISA is changing the face of the Australian and New Zealand trucking industry. Our state-of-the-art fleet has been built around providing relevant solutions to our clients’ unique requirements. With GPS-tracking capabilities, in-truck compliance and safety technology, real-time POD capability and creative construction from quality, worldwidesourced materials and technologies, we are reducing environmental impact and increasing efficiencies for more and more business operations every day.

It is great to work for a company that aligns with my own principle of a customer-centric approach. I believe in the company’s desire to deliver exceptional customer service and solution for our customers.

What do initiatives like the Women in Industry Awards and Conference mean to you?

Gender equality is one of the most pressing issues in today’s society. I am proud, and I feel privileged to live in a day and age where I can bear witness to women making unprecedented changes in their families, careers, industries and in the world. Aside from recognising the

contributions and achievements of women, initiatives like the Women in the Industry Awards and conference are a great platform to look within our own teams and highlight the contribution of our mates.

How does VISA demonstrate diversity?

At VISA, people are recruited because they are the best fit for the job. While our industry has traditionally been male-dominated, VISA employs more and more women across all departments including leadership roles. We come from different backgrounds, cultures and education yet we share a balanced and successful work place because diversity delivers a fun, positive and inclusive team.

We are proud of our growing global family.

What are you most looking forward to in your upcoming professional life?

I look forward progressing in my career at VISA, I’d like to eventually manage my own team. I am also looking forward to helping and watching VISA grow, expanding into more countries. We recently opened an office in Madrid, Spain – maybe you’ll find me there next year! ■ MHD FEBRUARY 2020 | 61

MHD PROPERTY FOCUS

Undertaking a detailed program review is essential to understand or identify key risks.

THE INDUSTRIAL CONNECTION Tim Edwards and Conor Maguire from Colliers International explore the benefits of a Project Manager reviewing agreement for leases or contract of sale negotiations for warehouse space.

A

s Project Managers, we are constantly engaging with industrial tenants and occupiers who have agreed key commercial terms or executed transaction documentation (whether that be an agreement for leases or contract of sale) without careful consideration and full understanding of the inherent risks and commercial exposure, when securing their new business space requirements. Unfortunately, this can be a costly exercise and lead to challenging situations and or/delays to key project deliverables.

To avoid finding yourself in this position, it may be worthwhile engaging a Project Manager to provide best in class advice from project inception right through to completion. Not only will this add value and improve the financial performance of your industrial asset, but it will also minimise the longterm commercial exposure and risk to your business.

As Project Managers, we work alongside the leasing agent or client 62 | MHD FEBRUARY 2020

representative during the negotiation through to completion of any transaction document. We represent our client’s interests, adding value and de-risking the process and enable you to make informed decisions.

Through our experience, we have outlined below the three key considerations all tenants and occupiers should be aware of when finalising transaction documentation for your new business space requirements.

1. TECHNICAL REQUIREMENTS FORMING PART OF THE BASE BUILDING OFFER All tenants and occupiers will have certain minimum performance brief requirements or key operational functionality that needs to be considered. For example, you might require increased height or floor loading to account for internal storage solutions, you may require certain operational flows or functionality within different areas of your facility, you may require

increased base building services over and above specific thresholds/limits, or you may require integrated fit out solutions/considerations. The aim of reviewing technical requirements from a building functionality, engineering and architectural perspective is to ensure these requirements form part of the base building offer, deliver long term operational efficiencies to your business and do not cause abortive works costs, obsolescence or delays to your project. Not only will this result in ensuring you achieve the longterm operational efficiencies and cost savings, an all-round better offer for the tenant or occupier, but it will also close the gap, ensuring that the landlords/ developers obligations are aligned with your expectations on your new business space requirements.

2. KEY PROJECT MILESTONE DATES / EXPIRY DATES Undertaking a detailed program review is essential to understand or identify key risks when undertaking your new

MHD PROPERTY FOCUS

business space requirements. Key project milestone dates, early access periods, existing lease expiry dates and transition periods, will be overlayed with the key milestone dates included within the transaction documentation to determine how realistic or risk adverse they are towards the obligations of the landlord/developer.

It is essential to ensure that realistic timeframes are included across all phases of the project to avoid the consequences of failure to meet sunset dates (key milestones within the transaction documentation) and accurately account for any lease expiry obligations, or relocation/ transition timeframes required on your current premises.

In reviewing the program, we ensure the transaction documentation accurately reflects key considerations and durations for all authority and statutory approvals, on site construction activities and durations, sunset dates, early access dates, and also accounts for any impacts of vacating your current premises or lease expiry, including any make good obligations. The above points form the framework from a program perspective. This allows us to ensure we assist you in determining the most efficient and realistic timeframes required for the delivery of the works, and ensures we identify and mitigate potential risks that we want to avoid, such as an extensions or re-negotiations on the existing lease, liquidated damages, and limiting risk around delays in authority approvals or sunset dates.

3. TERMS & CONDITIONS AND CLAUSES These can be ambiguous and favour the landlord/developer (especially around performance specifications, key milestone dates, early access periods, practical completion and ongoing defect management/warranty periods). We work alongside your legal team or client representative during the negotiation of the transaction document to review, identify or de-risk your commercial exposure when undertaking your new business space requirements. In our experience, the most common issues we come across include:

Conor Maguire, Associate Director at Colliers International.

• Performance specifications: Do they meet your technical requirements or key operational functionality needs?

• Extensions of Time: Ability for the landlord/developer to claim extensions of time for a delay on site or delay in achieving key milestone dates.

Are these conditions in favour of the landlord/developer and are there any mechanisms to cap or mitigate the delays to reduce the commercial exposure to the tenant or occupier on your current premises?

• Ambiguous variation and PC Sum clauses: It’s important to review how these are determined and the commercial impacts.

• Failure to meet sunset dates: What are the consequences of failing to meet these key dates and assessing liquidated damages?

• Payments towards fitout works or building upgrades forming part of any landlords/developers’ incentives or tenant / occupier contributions.

• Environmental and land considerations: For example, is the site contaminated or is if fit for industrial use?

• Ensuring there are correct titles for the land or the creation and registration of easements over the land: Does it require development approval; do they cause operational constraints, and do they require access considerations?

• Statutory Approvals and Permits for the facility: Ensuring all required development approvals and statutory permits include both building and use, do not cause operations constraints and enable unrestricted access to your premises; • Completion of tenant / occupier fitout works: How will these works be

Tim Edwards, National Director at Colliers International.

completed? For example, integrated with the landlords/developers works, engaged by the tenant / occupier and coordinated by the landlord/ developer during early access periods, or completed post Project Completion?

• Project Completion certification: Has the landlord/developer selected a favourable certifier and are they independent?

• Defects management, supplier warranties and as-built documentation and ongoing maintenance and DLP periods: What happens, who’s responsible and how is the process managed?

So, with the above key considerations in mind, are you about to negotiate or document the transaction documentation for your new business space requirements?

Is there a pending lease expiry or key milestone dates on your existing premises about to occur? Does your team need assistance in negotiating and completing the transaction documentation on your new business space requirements? Engaging one of our experts from the outset will ensure the most efficient delivery with respect to time, cost and quality, and most importantly, ensuring your expectations are aligned with the landlord’s/developers obligations.

Contact one of our industrial experts today.

Tim Edwards is the National Director at Colliers International and Conor Maguire is the Associate Director within the Project Leaders team at Colliers International. ■ MHD FEBRUARY 2020 | 63

MHD THE LAST WORD

2020 DEPARTMENT OF AGRICULTURE FEES AND LEVIES

T

he Ministerial appointed Biosecurity Levy Steering Committee, including representation from Freight & Trade Alliance (FTA), provided an extensive report to the federal government in May 2019.

On Wednesday 11 December 2019, the Minister for Agriculture publicly responded to the committee’s eight recommendations. In doing so, the Minister officially declared that the Biosecurity Import Levy, as announced in the 2018-19 Budget, will not proceed.

This does mean that the levy has gone away, simply that it will be replaced by an “alternate biosecurity levy”.

The below is a summary of commonly asked questions that FTA has received the preliminary responses as at the time of writing (7 January 2020).

FEES AND LEVIES Why is a Biosecurity Import Levy required on top of an increase in existing Cost Recovery fees?

As explained to industry bodies at the Department of Agriculture Cargo Consultative Committee (DCCC) meeting on Thursday 12 December 2019, the federal government is imposing a requirement on industry to pay for more of the biosecurity task rather than funds coming from general revenue (i.e. the tax payer).

This appears to align with the broader government mandate to deliver a surplus budget including the decision to further rationalise government departments and implementation of cost saving measures.

In accordance with this direction, the department advised that the increase in existing cost recovery fees will fund activities previously paid for from general revenue. Other activities that need to be paid for, but do not fall in line within established cost recovery guidelines, will be collected 64 | MHD FEBRUARY 2020

Members of the Biosecurity Levy Steering Committee.

via a new mechanism being the alternate biosecurity levy.

Are the African swine fever measures being funded by the expanded cost recovery or alternate biosecurity levy?

No. A Ministerial media release on 11 December 2019 referred to $66.6M being committed to arrest the threat posed to Australia by the global advance of African swine fever (ASF).

FTA followed up with the Minister’s office who confirmed that this is “new government funding” and will not be recovered via the expanded cost recovery or alternate biosecurity levy.

ALTERNATIVE BIOSECURITY LEVY What activities will be covered in the alternate biosecurity levy?

We do not have complete detail at this stage.

FTA will continue its advocacy for funds to be used to support importers in terms of increased and highly trained frontline officers (document assessments, inspections) and improved systems capabilities (including inspections booking system with a dashboard giving transparency on service levels).

The department has previously been restricted by government in increasing their staffing levels. FTA will advocate for this cap to be altered in line with the need for appropriate resources to meet acceptable service standards ensuring the legitimate movement and release of international trade.

What will be the quantum of the alternate biosecurity levy?

We do not have any detail at this stage.

MHD THE LAST WORD

What will be the collection method of the alternate biosecurity levy?

We do not have any detail at this stage.

When will the alternate biosecurity levy take effect?

We do not have any detail at this stage.

The alternate biosecurity levy will be subject to a Parliamentary Act. Realistically it is highly unlikely until this would take effect before mid-2020.

Will industry be consulted on the alternate biosecurity levy?

Yes. Unlike the previously proposed Biosecurity Import Levy, the Minister has this time committed to commissioning a Regulatory Impact Statement for the alternate biosecurity levy. FTA sees this as an important and necessary step.

We have also been advised that there will be a formation of new committee to support the department in developing the structure of the new alternate biosecurity levy. FTA, along with other DCCC members, have given a commitment to be a participant on this new committee and will provide further information once details are confirmed.

COST RECOVERY What activities will be covered in the increased cost recovery fee?

In terms of activities covered under the fee increase, the Cost recovery implementation strategy: biosecurity 2019-20 (CRIS) states at 2.1. that this will pay for: • assurance and verification activities; • increased analytical and intelligence activities; • provision of technical scientific advice; and • import pest and disease risk mitigation planning.

What will be the quantum of the increased cost recovery fee?

In terms of the fee increase, the CRIS states the following at 4.4.: “The amounts payable are shown in Table 4. The effect of the government’s decision to expand cost recovery for biosecurity activities is to increase the following 4 charges: • Full Import Declaration charge—air was $33, modelled at 37.34, rounded to $38.

• Full Import Declaration charge—sea was $42, modelled at 48.45, rounded to $49.

• Vessels greater than or equal to 25 metres—arrival charge was $920,

“

The Minister officially declared that the Biosecurity Import Levy, as announced in the 2018-19 Budget, will not proceed.

”

modelled at $1053.09, rounded to $1054.

• V essels less than 25 metres—arrival charge was $100, modelled at $119.79, rounded to $120.”

As advised at the December DCCC meeting, the above increase is budgeted to return an additional $11M for the remainder of this financial year and an additional $23M in 2020/ 2021.

What will be the collection method of the increased cost recovery fee?

As outlined above, importers will see an increased Full Import Declaration (FID) cost recovery fee for both air and sea. Importers may also see a commensurate increase of fees passed through the supply chain as a result of the increased vessel charges imposed on shipping lines.

When will the new cost recovery fees take effect?

1 January 2020.

Was industry consulted on the increased cost recovery fee?

No. In terms of import stakeholder engagement, the CRIS states the following at 4.3.1.: “In November 2019 the Australian Government decided to expand cost recovery for biosecurity activities, from 1 January 2020 (see section 2.1). This CRIS implements this decision.

As announcement of the measure is only a few weeks out from implementation of the new charges, we have not undertaken our customary industry engagement on a draft CRIS or proposed charging models prior to publishing this document.

Industry have been informed of the price increases through public announcement and the issuing of Industry Advice Notices (IANs).

The department will engage with the relevant industry representatives through established consultative forums, such as the Department’s Cargo Consultative Committee (DCCC), as soon as possible following publishing of this CRIS. To provide opportunity for stakeholders to provide their views on this CRIS and future charges, we will conduct a full review of regulatory charging for biosecurity in 2020-21.”

FTA will continue to be at the forefront of related reforms and will keep MHD readers up to date on ongoing developments. ■ MHD FEBRUARY 2020 | 65

MHD FROM ALC

Increasing demand for low cost and fast delivery will continue to spur innovation throughout 2020.

I

EMBRACE TECHNOLOGY TO REMAIN GLOBALLY COMPETITIVE

t’s no secret that many businesses in Australia found the final quarter of 2019 a difficult one, and freight logistics sector was not exempt, with many operators reporting tighter margins.

Yet, as is so often the case in this industry, many can see opportunity in adversity, and are increasingly coming to embrace technological solutions and the power of data to deliver productivity and efficiency gains.

Almost invariably, my conversations with senior industry professionals start and end with a focus on clients. They are driven by the increasing expectations of customers and the omnipresent desire to, quite literally, deliver for those clients.

From the “where is it now?” experience of individual e-commerce customers to the increasingly sophisticated expectations of largescale clients, this industry is having to find ways to meet the demands of increasingly sophisticated consumers.

“Track and trace” has been part of service delivery for larger logistics providers for many years. But the rise and rise of e-commerce, and the associated expectations of clients, is driving more than simple visibility.

80% per cent Australians shop online now and this is expected to continue 66 | MHD FEBRUARY 2020

growing strongly. The challenge for this industry is that while one in 10 items are now purchased online, consumers expect delivery to form part of the package.

65.5% of deliveries have ‘free shipping’ and research indicates that around 60% of Australians will abandon a “shopping cart” online if they are presented with higher than expected delivery charges.

The convergence of increasing demand for low cost delivery and the increasing speed of that delivery (including ‘same day’) will continue to spur innovation throughout 2020.

The second driver will be increasing demands from larger scale clients. The drive for efficiency across the corporate world will encourage businesses to focus on what they do best, and form partnerships to avail themselves of the specialist skills and capabilities that are fundamental to success but not necessarily core business. Supply chain will be an ‘outsourceable’ requirement but not in the traditional sense.

Sophisticated clients know they need more than trucks and drivers. They need advanced industry expertise on how to optimise their supply chains.

That expertise will be based on trusted partnerships with logistics professionals shifting from 3PL to 4PL where 3PL handles shipments and 4PL efficiently manages the entire supply chain. The

larger the customer, the greater the leap of faith in terms of the trust demanded to ‘outsource’ a fundamentally important part of their business.

The trust will be built on the certain knowledge that the partnership allows the client to focus on core business while enjoying full confidence that their supply chain partner is a ‘onestop-shop’ for all things logistics.

This will further expand the need for true collaboration within the supply chain across all modes and nodes with partners needing trusted partners of their own.

The same will be true of supply chain safety and technology. A depth of contemporary global knowledge of available and emerging technologies and safety thinking will be a pre-requisite to demonstrating the expertise required for long-term partnerships.

Driven by customer demand, and the ambition to always exceed these demands, logisticians will become ever more sophisticated, knowledgeable and skilled. The industry will become the exclusive domain of professionals of proven experience, capacity and reputation. The expertise demanded in all aspects of the complex supply chain will be beyond the development capacity of all but the largest clients.

The rewards for all parties will be

MHD FROM ALC

significant. Clients will access globally competent minds sets that exceed expectations without the distraction and investment in internal capacity.

Logistics partners will build scale, improve margins and certainty of contracts as they move beyond a 3rd party provider to become an integral part of client businesses.

But full potential will never be met without the capture and analysis of data or the embrace of current and emerging technology.

Automation will remain a significant focus across many parts of the industry.

Uptake will expand quickly through ports and intermodals in 2020 as current investments deliver dividends and other parties seek to emulate success.

Technology uptake will also extend to automated vehicles far more quickly than many expect. Proven technology is with us today – policy and mindsets need to catch up. Australia may be an island continent – but we are certainly not an island with respect to the global economy. Our continued prosperity will be determined by our ability to ensure our supply chains are globally competitive.

A crucial part of this challenge is to ensure that Australia is equipped with high quality freight transport

infrastructure that embraces technology and facilitates the faster, safer and greener movement of freight through supply chains.

One place that is beginning to occur is in Western Sydney – and it is for that reason that the Australian Logistics Council has decided to stage its signature annual event – ALC Forum 2020 in Western Sydney on 18-19 March.

ALC Forum 2020 will connect business leaders, government representatives, investors, infrastructure owners, educational institutions and leading logistics companies with the business opportunities that now abound in Western Sydney through Australia’s supply chains. Our event will put the focus on this flourishing economic region that is already home to one in ten Australians - and is set to attract another half a million residents by 2031.

With freight infrastructure including the Moorebank Intermodal Terminal and Western Sydney Airport set to transform supply chains, ALC Forum 2020 will present attendees with the chance to connect with those who are designing the future - and make sure their businesses understand what that future means for them.

With an estimated two thirds of the world’s population within half a day’s

flight from Western Sydney, the new airport is set to become a key gateway for Australian producers taking their goods to emerging international markets.

ALC Forum 2020 will explore how some of the best-practice approaches to planning, building and optimising freight infrastructure in Western Sydney can be deployed across other parts of Australia, enhancing the efficiency, safety and resilience of the national supply chain.

Other elements of the ALC Forum 2020 program will discuss the challenges and opportunities for the freight sector nation-wide in productivity, safety and building a sustainable workforce.

There will also be insights from leading political figures, researchers and major industry figures as they share their perspectives on emerging trends in freight movement, and discuss the policy and regulatory reforms needed to accommodate a freight task that will increase by 35% by 2040.

This is the one industry event that connects the whole supply chain service providers, infrastructure owners, investors and customers – in the heart of Australia’s fastest-growing economic region. To be part of it, visit: www. austlogistics.com.au/ALCForum2020. n

Automation will remain a significant focus for many parts of the industy.

MHD FEBRUARY 2020 | 67

ASCI2020: THE DECADE FOR SUPPLY CHAIN TRANSFORMATION

I

t is 2020 and enterprises are faced with advancements in technology, business model disruptions and trade wars, not to mention a volatile, uncertain, competitive and ambiguous environment where change has become the new normal.

The key to success in the new decade will depend on your customers’ experiences of your product and services and their views on the environment. Therefore, your supply chain design needs to be agile, flexible and adaptable to the changing needs of your customers.

Although agility is required for success, it is difficult to attain, given the complexity of the end to end supply chain and the skills demanded of your teams to operate within it.

This conference will be the largest gathering of supply chain leaders around the country, where you will hear from international and local experts to help you map out supply chain management priorities for the new decade and how to engage your teams along the journey of transformation.

SAVE THE DATE! ASCI2020 will be held from the 15th17th of September 2020 at William Inglis Hotel, Warwick Farm, Sydney.

ANNOUNCING THE ASCI2020 ADVISORY BOARD Brendan O’Keeffe, NSW Chapter President for ASCI, is responsible for member programs and delivering value to corporates across the state.

He has 20 years of search & executive recruitment experience across supply chain, operations, and related technical functions.

68 | MHD FEBRUARY 2020

Amanda Brisot, Amanda is General Manager of member funded not for profit organisation; The Western Sydney Business Connection (WSBC), where she is focussed on connecting Western Sydney SMEs with growth opportunities.

WSBC supports local business through advocacy, member events, professional development and structured business matching across the major commercial centres of Parramatta, Liverpool, Fairfield, Norwest Business Park, Campbelltown, Bankstown, Blacktown and Penrith. She is a strong advocate for Western Sydney and sits on a number of boards and advisory committees including National Parks and Wildlife, Urban Theatre Projects and the Western Sydney University External Advisory Committee.

Nina Younes, Contracts Manager at Western Sydney Airport (WSA), has experience in government administration and is skilled in negotiation, business planning and operations management. As 2019 winner of the ASCI Award for Excellence in Diversity & Inclusion, WSA will play site host to the conference delegates on Day 3.

Hayley Jarick, CEO of Australian Supply Chain Sustainability School is experienced in governance and strategic management in manufacturing, residential and commercial building, heavy construction, professional services and international trade. Hayley has previously worked for the Resolution Institute, Infrastructure Sustainability Council of Australia and BlueScope Steel.

Giovanni Ferrante has experience across Europe, ANZ and APAC in managing marketing operations and cross-functional initiatives

including leading the Chartered Institute of Procurement & Supply Australasia’s position on the Australian Modern Slavery Act. Tania Montesin has 20 years’ experience in manufacturing and supply chain management across FMCG, chemical and construction industries including Woolworths, Asahi Beverages, Goodman Fielder and Boral. At Asahi Beverages, she was responsible for managing four widely distributed manufacturing sites; the implementation of Industry 4 methodologies and practices; and integrating people capability with emerging technologies.

Mark Skrzypiec, Chair of ASCI’s Industry Risk Committee, has 15 years’ experience driving operational excellence across supply chain and logistics operations in the B2C and B2B sectors. While at Novis, Mark led an ISO 9001 accreditation process.

He successful transformation De’Longhi’s supply chain. More recently as head of Logistics for Miele, Mark established two greenfield distribution facilities while implementing new processes including cloud-based digital applications to create a customercentered, award-winning logistics function in full alignment with the organisation’s premium brand promise.

Aaron Bambrick has over 15 years’ experience in supply chain recruitment across Australia. He is Director of Technical Disciplines in NSW for Michael Page and his expertise is across Engineering, Manufacturing, Supply Chain & Logistics, Property & Construction and Procurement.

Indrasen Naidoo has drawn on his

MHD FROM ASCI

BRENDAN O’KEEFFE

AMANDA BRISOT

NINA YOUNES

HAYLEY JARICK

NSW CHAPTER PRESIDENT FOR ASCI

GENERAL MANAGER, WSBC

CONTRACTS MANAGER, WESTERN SYDNEY AIRPORT

CEO OF AUSTRALIAN SUPPLY CHAIN SUSTAINABILITY SCHOOL

GIOVANNI FERRANTE

TANIA MONTESIN

MARK SKRZYPIEC

AARON BAMBRICK

MARKETING EXPERT

MANUFACTURING AND SUPPLY CHAIN EXPERT

CHAIR OF ASCI’S INDUSTRY RISK COMMITTEE

DIRECTOR OF TECHNICAL DISCIPLINES, MICHAEL PAGE

HATEM ABU

DUNCAN WARDLE

MEL STARK

ASCI NSW CHAPTER MEMBER

EDITOR, MHD SUPPLY CHAIN SOLUTIONS

INDRASEN NAIDOO SUPPLY CHAIN EXPERT

GLOBAL SUPPLY CHAIN MANAGEMENT & ERP EXPERT

dual academic pathways of finance and industrial engineering to shape a 25-year career in supply chain in South Africa and Australia for De Beers, Mondi Group, FirstRand Bank and Roy Hill Holdings as well a non-executive founding director role with the South African Supplier Diversity Council.

Through building and optimising supply chains in sectors including transport, mining, manufacturing and finance, Indrasen has expertise and insight into complex system design and performance including the pivotal role of human systems both intra and inter organisational.

Hatem Abu Nusair is a Global Supply Chain Management & ERP Expert.

He is Production Planner at Tip Top, one of GWF’s divisions in Sydney, having moved from Jordan where he worked for a blue-chip international company that grew rapidly. Here, Hatem founded the Regional Middle East & North Africa (MENA) Supply Chain Department with the purpose of optimising Supply Chain performance

across 13 subsidiaries through demand management and forecasting, capacity management, inventory control, and special projects, which entails: IT initiatives, ERP implementation, re-engineering of Supply Chain processes and other relevant matters.

Hatem is a qualified Industrial Engineer and a Master of Manufacturing Engineering candidate at UNSW. He is a Certified Fellow in Production and Inventory Management (CPIM-F) by APICS, a Certified Fellow Supply Chain Professional (CSCP-F)

by APICS and a Certified Application Associate by SAP SE. Duncan Wardle, ASCI NSW Chapter Member, previously General Manager and Site Head for GSK in New York for 17 years, was accountable for the turnaround of GSK’s largest and most important CH site in the Americas supplying GSK’s number 1 brand to the number 1 market. He was responsible for all elements of business performance including safety, compliance, quality, supply, finance,

sustainability in an FDA regulated environment via a team of 400 people in multiple functions. He led business turnaround moving site from worst to first on the Americas internal balanced scorecard. He instilled a customer centric mindset to increase accountability and move performance from crisis to world class.

Mel Stark is Editor for MHD Supply Chain Solutions magazine. Mel has an international career working both in the UK and Australia for the supply chain and logistics sectors including CILT in the UK. Mel will have an overarching role on the ASCI2020 Advisory Board, ensuring that the program content aligns with industry trends and challenges.

REGISTER NOW AND SAVE! Early bird conference passes are now on sale, save $300 and 10% hotel discounts are available. The Prospectus is available on request.

Contact Tony Francis via tony.francis@ primecreative.com.au. ■ MHD FEBRUARY 2020 | 69

MHD NEWS FROM SCLAA

A SHARED GOAL W

MATTHEW WRAGG SCLAA CHAIRMAN

70 | MHD FEBRUARY 2020

ell 2020 has come by with a bang.

Bushfires caused by global change, talk of war between the US and Iran, disruption of political systems in the UK and China, Hong Kong still at logger heads and financial market meltdown in Argentina.

Where do we hide from all of this? Or do we need to in the first place?

Late last year, listening to a speech by Richard White, CEO of Wisetech Global, Richard discussed the fact that business around the world want free trade and easing restrictions. Simply put, businesses want to trade and be in a fast-moving global economy, successfully.

If you have any portion of your superannuation fund invested in any stock exchange, you want growth and so do the citizens of China, the USA, UK, Argentina, Iran, Hong Kong and any other place on earth.

If you read into the news too deeply, you will read phrases like ‘Rising Tensions’, ‘Escalation’ and ‘New Threats’, but the truth of it all is that we have always lived in a world with complication borders and relationships. Globally, we are different people in the way we dress, eat and discuss our dreams. But locally, we all share a commonality in that we want peace for our family in a thriving economy. Most of humanity wants to live in a thriving, connected world.

Supply chains also strain in worlds being ripped apart and how we move our people and goods in airspace being shared by missiles sent from one country to the next. If you’re anything like me, your heart will go out to the 176 people and their families mistakenly shot down by Iran forces.

With uncertainty in the airspace above Iran and Iraq, airliners including Qantas must revisit their flight routes to ensure the safety of their patrons. As frustrating as the global tensions may be, we have seen them before and supply chains globally, must continue and forge ahead. This is not the first time we have seen tensions rise to the start of wars and nor will it be the last.

As the old saying goes; “the truth will come out”, in that countries will find a way

“

Globally, we are different people in the way we dress, eat and discuss our dreams. But locally, we all share a commonality in that we want peace for our family in a thriving economy.

Most of humanity wants to live in a thriving, connected world.

”

to push ahead and work together, because that is the true will of the people. Most people I talk to want freedom, thriving communities and a greener future for their children. Certainly not war or the threat of one.

Many politicians talk of world peace and how they will bring us closer to it. Yes, we want it, but is it the politicians who will grant us all that dream? Or will it be global supply chains bent on bringing down walls and building bridges to forge alliances and trade routes to satisfy demand?

I feel it is the latter.

I feel that it is the pure will of humanities desire for goods and services that enable us all, globally to live a better life and have a brighter future for our children that will bring us all together in a world filled more with brighter dreams that missiles and threats of war. If ever there was a more pressing moment for supply chain to bring people together, it is now, in a world that changes for the better every moment, thanks to a technology shift that enabled a closer global community.

I wish you well for 2020, in this new decade and beyond, as well as prosperity for you and your family, no matter what part of the globe you came from or intend to go. n

2 APRIL 2020 MELBOURNE

NOMINATIONS

NOW OPEN

HELD IN CONJUCTION WITH

AUSTRALIAN BULK HANDLING EXPO

2020

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LOGISTICS GETS SMART.

Material stores that record their inventory in real time. Shuttles that coordinate orders with each other. Transport systems that organize their routes independently. Intelligent sensor solutions from SICK are driving forward networking in production and logistics. They monitor objects, analyze data and make information available in real time throughout the entire supply chain. This makes processes more transparent and efficient – and above all smarter. We think that’s intelligent. www.sick.com/smart-logistics