MHD Supply Chain Solutions February 2024 by Prime Creative Media

MHD SUPPLY CHAIN SOLUTIONS FEBRUARY 2024

FEBRUARY 2024

COVER STORY

LINDE SEES LI-ION LIFT Linde Material Handling Australia on its clean, green material handling solutions

NEW STANDARD FOR WAREHOUSE RACKING Dematic explains new racking standards

AI-POWERED BACK OFFICE AUTOMATION provenio.ai leverages AI to streamline back office operations

Steer towards operational excellence Building on the success of our first in-person Elevate last year, this year’s event will help you chart your course toward operational excellence and supply chain resilience. Featuring keynotes from industry leaders, insights into the latest technology, and networking opportunities, you won’t want to miss our Elevate event and early bird offer.

Scan for early bird registrations koerber-supplychain.com

MHD EDITOR’S LETTER

MHD

Supply Chain Solutions CONTACT MHD Supply Chain Solutions is published by Prime Creative Media 379 Docklands Drive, Docklands VIC 3008 Telephone: (+61) 03 9690 8766 Website: www.primecreative.com.au

THE TEAM CEO: John Murphy Chief Operating Officer: Christine Clancy Managing Editor: Syed Shah Editor: Edward Cranswick Journalist: Joseph Misuraca Business Development Manager: William Jenkin Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Louis Romero, Kerry Pert Client Success Manager: Janine Clements

FOR ADVERTISING OPTIONS Contact: William Jenkin william.jenkin@primecreative.com.au

SUBSCRIBE Australian Subscription Rates (inc GST) 1yr (6 issues) for $78.00 2yrs (12 issues) for $120.00 – Saving 20% 3yrs (18 issues) for $157.50 – Saving 30% To subscribe and to view other overseas rates visit: www.mhdsupplychain.com.au or Email: subscriptions@primecreative.com.au

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.

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.

WELCOME TO 2024

s we delve into the heart of 2024, it’s clear that sustainability and strategic adaptation are key themes shaping the supply chain and logistics industry. In this February edition of MHD, we bring you stories that encapsulate these pivotal trends. Our opening highlight is the much-anticipated Prological Supply Chain Pulse-Check Survey. Peter Jones, Founder and Managing Director of Prological, unveils the survey’s findings, revealing a significant shift in industry perspectives. The report, which last year depicted a predominantly pessimistic economic outlook, now shows a stabilising sentiment, with industry leaders expecting the economy to maintain its current state. The survey also reveals the continued emphasis on sustainability, something which industry leaders paid great attention to last year and are doubling down on in the year ahead – albeit with modified expectations. Our Cover Story is evidence of this sustainability focus, as we take a closer look at Linde Australia’s future-oriented focus with their new Lithium-ion forklifts. In an exclusive conversation with Greg Wood, Technical Solutions Manager at Linde Material Handling (Australia), we explore how these cuttingedge forklifts are not just a nod to cleaner, greener logistics solutions, but also a major step in enhancing operational safety and efficiency. The edition also features a story on provenio.ai, a pioneering firm revolutionising the logistics industry with its advanced AI technology. By automating tedious back-office tasks and streamlining complex data processes, provenio.ai is setting new benchmarks in delivering rapid value and measurable ROI, aligning perfectly with the industry’s drive towards innovation and efficiency. Elsewhere, we delve into the critical updates to the AS 4084 Standard for selective racking in Australia, with Dr. Murray Clarke, Director of Structural Engineering at Dematic, guiding us through these essential changes. This first update since 2012 signifies a crucial development in warehouse compliance and safety, reflecting our industry’s dedication to evolving and upholding high standards. These stories are just the beginning of what we have in store for you in this edition, which continues to cover the vital themes of innovation, resilience, and, importantly, sustainability - the core pillars that are currently redefining our industry. Happy reading, and here’s to a year of insight, innovation, and sustainable growth.

Edward Cranswick Editor edward.cranswick@primecreative.com.au

MHD FEBRUARY 2024 | 3

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SOLUTIONS FOR EVERY PALLET ®

FEBRUARY 2024

ISSUE 02 VOLUME 54

THIS ISSUE COVER STORY

32 Linde on Lithium

REGULAR COLUMNS 36 Logical Outlook

SUPPLY CHAIN 30 ESG in practice 49 SAP leading supply chain into the future

COVER STORY

52 Argon & Co turbocharge procurement 60 Roland boosts supply chain visibility 62 AI-powered back office automation

MATERIALS HANDLING 40 T he Combilift difference 47 H angcha Lithium E-Trucks’ 3-Pivot XC Model 54 M ore than a garden variety vehicle

FEBRUARY 2024

COVER STORY

LINDE SEES LI-ION LIFT Linde Material Handling Australia on it’s clean, green material handling solutions

INDUSTRIAL PROPERTY

38 A1 Precision delivering big projects

WAREHOUSING 44 Dematic on new warehouse racking standard

NEW STANDARD FOR WAREHOUSE RACKING Dematic explains new racking standards

ASSOCIATIONS, EVENTS, AND REGULARS

AI-POWERED BACK OFFICE AUTOMATION provenio.ai leverages AI to streamline back office operations

58 Sustainability on show at MEGATRANS2024

ON THE COVER

64 SCLAA

Linde Australia is rolling out new Lithium-ion forklifts to meet

66 RWTA

growing demand for clean, green

67 ASCI

solutions that improve safety and efficiency.

69 People on the Move 70 Product Showcase MHD FEBRUARY 2024 | 5

MHD INDUSTRY NEWS & OPINION

LOOKING AFTER WAREHOUSE WORKERS’ MENTAL HEALTH However, it’s also important to provide access to external resources for staff to find help with mental wellness issues as not all staff will feel comfortable reaching out to their co-workers. It’s a good idea to provide staff with access to some kind of support service, even if you’re unsure they need it, like an employee assistance program. Similarly, publicising initiatives, like RUOK? Day and Healthy Heads in Trucks & Sheds Foundation, can also make a positive contribution. Healthy Heads in Trucks & Sheds Foundation, for example, promotes the prevention and understanding

Stockland’s new ESG Strategy has a renewed focus on social impact. Image: Stockland.

tockland tells MHD about why warehouse workers’ mental health needs to be treated equally as important as their physical health, and how managing it improves safety and productivity in the workplace. Increasingly, mental health is becoming as important as physical safety at work. It’s a key component of both productivity and safety in the workplace – and that includes warehousing. Stockland’s new ESG Strategy has a renewed focus on social impact and we’ve set the bar high with a target of $1 billion of social value creation by 2030 – we’re committed to bolstering our focus on the industrial sector.

Businesses that are looking to provide an environment of optimal mental wellbeing for their employees must also include a zero-tolerance approach to discrimination on any grounds, such as disability, gender, sexual orientation, or race. Whether a business has 5 or 500 employees, there are benefits to both employer and employee in building mentally healthy workplaces: • improved wellbeing and mental health • fewer injuries and sick days • greater job satisfaction • increased productivity • increased worker engagement • reduced staff turnover and attendant costs.

SO, WHAT DOES IT MEAN TO PROVIDE A “MENTALLY HEALTHY” WORKPLACE?

STARTING THE CONVERSATION AND SHARING RESOURCES OUTSIDE OF THE WORKPLACE

A mentally healthy workplace is one where employees feel respected, supported, and free to speak about concerns or stress. It’s a place where risks to mental health are managed, where people with mental health conditions are supported, and there is help readily available for employees to stay at or return to work. 6 | MHD FEBRUARY 2024

It’s important to start a conversation with employees, and within the employee group, to “normalise” discussions about mental health and to make it easier for staff to discuss and address any issues that may be occurring.

of known mental health issues that exist across the road transport and logistics industries in Australia. Their overarching aim is to build a psychologically safe, healthy, and thriving working environment for truck drivers, distribution centre and warehouse staff, and other road transport industry members. Providing access to mental health resources is one of the simplest and most effective things employers can do to create a welcoming and supportive warehouse environment.

LOCATION AND MENTAL WELLBEING IN WAREHOUSING Yet, warehouse workers are just as in need of community and wellbeing facilities as any other industry. Warehouses are often situated in remote locations on the fringes of communities so cannot provide workers with easy access to open spaces, gyms, and other wellness features, such as leisure activities and cafes.

SOURCES https://business.vic.gov.au/businessinformation/workplace-wellbeing/ create-a-mentally-healthyworkplace https://www.nsw.gov.au/ mental-health-at-work/workplacepulse check

Justin Carnaby Head of Logistics, AS Colour

Order Fulfilment Down to a Tee AS Colour achieves 344% throughput per worker with GTP “game-changer”

When AS Colour started out, the trend was for tight tees and baggy pants. But while clothing fashion trends come and go, the trend that doesn’t change is that customers want their orders delivered on time and accurately. Dematic’s Multishuttle Goods-to-Person (GTP) fulfilment system enables AS Colour to process orders with higher productivity, faster and with increased accuracy, down to the sequence of items in the package. As a result, AS Colour has seen a big increase in sales as customers see how fast and accurately their orders reach them. Learn more at dematic.com/as-colour

Scan to watch the video! Dematic.com 02 9486 5555 info.anz@dematic.com

MHD INDUSTRY NEWS & OPINION

MAKING THE RIGHT NETWORK AND FREIGHT DECISIONS

rological has released a new whitepaper on network considerations for businesses to maximise network advantage while leveraging the most appropriate set of compromises. The white paper: ‘Bespoke Network Design: how to make the right network and freight decisions’ discusses core supply chain rules and network design strategies to improve efficiency, decrease carbon footprints, and avoid costly mistakes. From working with Australia and New Zealand’s largest retailers and logistics companies, the Prological team shares its innovative approach for establishing the correct location for each node within a supply chain network, unique to every business. “Despite the importance of freight and network design, many companies are unsure of how to approach the decision-making systematically,” says Peter Jones, Managing Director and

developed this white paper to help organisations understand network efficiencies and limitations, while also maximising opportunity.”

THE FACTORS FOR NETWORK CONSIDERATION FOR ANY ONE BUSINESS ARE:

Network challenges have altered considerably in recent years; however, the primary components of an efficient network remain the same. Image: Prological. Founder at Prological Consulting. “If network design decisions are heavily influenced by sales and property teams, while freight considerations are left in the hands of logistics or warehouse management, a disconnect will lead to an inefficient supply chain ecosystem. We have

1. Customer service promise 2. Import-distributor or local manufacturer (or both) 3. A bility to move economic freight and inventory quantities to warehouses from each point of origin (suppliers, port, or manufacturing site) 4. Simplicity or sophistication of freight options (actionable and sustainable) 5. Ability to tightly control inventory (or not) 6. Distribution (to customer) patterns 7. Fragility of the product 8. Importance of carbon reduction when considered against other criteria.

TAFE NSW WORKING TO BUILD MARITIME WORKFORCE

AFE NSW is meeting the demand for maritime workers as the federal government commits to improving future maritime capability, with an Australian owned and crewed strategic fleet. It says the Australian government recently committed to delivering a Strategic Fleet of up to 12 vessels, to help Australia build resilience to freight disruptions, while supporting the maritime workforce and sovereign capability. “Port Botany, the Port of Newcastle, and Port Kembla are important gateways for trade, with over 4600 commercial vessels docking in these ports each year,” says Christopher Greentree, Director, Supply Chain & Ecommerce Skills Team, TAFE NSW. “There are a wide range of job roles from deckhands, marine mechanics, and

8 | MHD FEBRUARY 2024

engineers to logistic and warehousing coordinators that keep this critical supply chain moving.” Australia is the fifth largest user of shipping services in the world – relying on sea transport for 99 per cent of exports. With a shortage of Australian flagged ships and high demand for skilled workers – the government says the Strategic Fleet would be relied on in times of national crisis and emergency, helping get vital goods to affected regions, and making Australia less reliant on international shipping. “In the areas around Port Botany and in the Newcastle and Illawarra regions, marine transport professionals grew by nearly a third in the last 12 months,” adds Christopher. “At TAFE NSW, people can get ahead of the jobs boom, and kick start their

Australia is the fifth largest user of shipping services in the world. Image: TAFE NSW. maritime career, choosing from a range of accredited courses providing in-demand skills and industry licencing to get ahead.” TAFE NSW is addressing the maritime skills shortage by training a pipeline of future maritime workers, with Maritime courses offered from entry level to Advanced Diploma in several locations across the state.

MHD INDUSTRY NEWS & OPINION

MASTERING SUPPLY CHAIN AGILITY WITH SICK SOLUTIONS One of the pillars supporting modern supply chain agility is Industry 4.0, with its emphasis on data-driven decisionmaking. Image: SICK Australia.

he very essence of a successful supply chain lies in its agility – the ability to swiftly adapt to and manage the constantly shifting customer demands and challenges of the global resource shortages. In this dynamic environment, companies such as SICK have emerged as indispensable allies, helping businesses achieve unmatched levels of flexibility and responsiveness. E-commerce has significantly transformed the traditional supply chain1. John Butera, Logistics Automation Manager at SICK Australia, notes that with packages generally getting smaller, logistics companies face an increasing pressure to sort, manage, and deliver a vast number of parcels both swiftly and efficiently. According to John, “the stakes in this landscape are immense: even a minor hiccup can disrupt the entire supply chain.” However, John believes that every challenge also presents an opportunity. Observing the current e-commerce surge, he underscores the critical need for smart automation solutions. Such smart sensors, adept at efficiently sorting and detecting a myriad of packages, equip logistics companies with the means to demonstrate agility in response to the various challenges ushered in by e-commerce. One of the pillars supporting modern supply chain agility is Industry 4.0, 10 | MHD FEBRUARY 2024

with its emphasis on data-driven decision-making. John emphasises the importance of gathering comprehensive data. Here, SICK’s track and trace systems, particularly Dimensioning Weighing and Barcode Scanning Solutions (DWS), play a pivotal role. “DWS offers accurate identification, weight, and dimensioning in a single step, optimising the supply chain by ensuring billing accuracy and preventing revenue leakage,” says John. SICK’s DWS isn’t just about revenue recovery but enhancing operational agility. Its ability to adapt to varied parcel sizes and weights, even as e-commerce trends evolve, is a testament to its agility-centric design. A responsive supply chain is transparent and traceable. The modern consumer expects real-time updates, making traceability a cornerstone of supply chain agility. “With the constant scanning and data collection facilitated by SICK’s sensors, logistics providers can ensure parcels are always tracked, providing a seamless experience for the end user,” says John. Moreover, SICK’s sensors monitor critical logistics infrastructure, like conveyors, in real-time. Predictive maintenance – enabled by tracking metrics like proximity, velocity, vibration, and temperature – ensures that potential issues are flagged before

they become major disruptions. This not only prevents downtime but exemplifies proactive agility in action. W Agility also lies in foresight. SICK’s scalable solutions ensure that as e-commerce distribution centres grow, their technological backbone grows with them. The modular nature of SICK’s systems guarantees that logistics providers can quickly adapt and upgrade their infrastructure in line with their evolving needs. Meik Kettinger, the Key Account Manager for Electronics & Solar at SICK Vertriebs-GmbH, eloquently articulates the spirit of SICK: “We grow with our customers at each new challenge – that’s what drives us each and every day2.” With deep industry knowledge and unparalleled technical expertise, SICK is not only addressing today’s supply chain challenges but is also agilely poised to tackle those of tomorrow.

REFERENCES: 1. Stark, M. (2020, February 18). Industry 4.0 ready. MHD Supply Chain Solutions. https://mhdsupplychain.com. au/2020/02/18/industry-4-0-ready/ 2. SICK. (n.d.). Move into new dimensions: Sensor solutions for all types of mobile robots. https://cdn.sick. com/media/docs/4/54/654/customer_ magazine_sickinsight_mobile_robots_ en_im0099654.pdf

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MHD INDUSTRY NEWS & OPINION

LAST RAIL SIDE LAND AVAILABLE

estern-Australian-based property developer Hesperia has released a rare rail side opportunity to be part of its awardwinning industrial estate, Roe Highway Logistics Park (ROE). It notes the last rail side parcel of land within Western Australia’s leading sustainable industrial estate will host an expansive 21,000 sqm warehouse with a 17,000 sqm container-rated hardstand. Hesperia Director Judd Dyer says it is a rare opportunity to acquire a space in the heart of Western Australia’s industrial landscape. “The location of the warehouse is second to none,” he adds. “ROE has attracted globally recognised industrial companies for many reasons, and we expect the tenant will quickly benefit from the strategic advantages our estate has to

offer. With vacancy rates at an all-time low in WA and the unique rail-side location, we expect demand to be strong for this warehouse.” ROE is situated on Logistics Boulevard in Kenwick, near arterial roads Roe Highway and Welshpool Road. The industrial estate offers RAV7 access and is strategically located near the city, airport, and the established Kewdale/Welshpool area. In addition to ROE’s connectivity to Perth’s major networks, the warehouse boasts direct access to the Kenwick Rail Freight Facility. Slated for completion in mid-2024, the Intermodal Facility will provide future tenants with faster, cost-effective, and environmentally friendly transportation via direct rail link to Fremantle Port’s North Quay. Customisable solutions are available as well as immediate construction, giving tenants the ability to tailor the

design to suit their needs and reach completion by Q4, 2024. ROE is home to the first 6 Star Green Star – Design & As Built industrial facility in Western Australia and is on track to be the State’s first carbonneutral industrial estate. Setting a new standard for sustainable development, ROE has been recognised both locally and nationally for its industry-leading sustainability initiatives. With environmental sustainability at the centre of all planning, ROE features low-carbon concrete, solar power, energy optimisation strategies and Forest Redtailed Black Cockatoo conservation. Developed for large-scale logistics and warehouse requirements, ROE is already home to major global and Australian companies Mainfreight, Silk Logistics, JB HI-FI, Sandvik, CHEP, Northline and KTrans.

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ROE is home to the first 6 Star Green Star – Design & As Built industrial facility in Western Australia. Image: Hesperia.

12 | MHD FEBRUARY 2024

MHD INDUSTRY NEWS & OPINION

GEOTAB REVEALS SOLARPOWERED ASSET TRACKER

eotab Inc. has partnered with a California-based IoT hardware provider to create a solarpowered asset tracker which is now available in Australia and New Zealand. The TT600 series by Positioning Universal Inc. (PUI) provides fleet managers with near real-time, detailed tracking information for assets such as trailers, containers, and generators, and is simple to install. The TT600 series provides visibility into the true utilisation, dwell time, yard movements, and yard entry and exit times of a fleet’s important assets. “We are very excited to partner with Geotab and help expand their solutions offerings in the Australian and New Zealand markets,” says Mark Wells, President and CEO at PUI. “By offering the solar-powered asset tracker TT600 series on the Geotab Marketplace, we are providing Geotab’s over 47,000 regional

The solar-powered asset tracker TT600 series by PUI utilises GPS-based tracking to provide insight into asset usage and location. Image: Geotab. customers with a tool that can help them improve how they manage their trailers, containers, and other important assets.” The solar-powered asset tracker TT600 series by PUI utilises GPS-based tracking to provide insight into asset usage and location via the MyGeotab platform. By using data insights, fleet managers can better address issues

such as underutilisation, effective lot management, maintenance, and solve for common trailer management challenges. Designed to withstand harsh conditions, the solar asset tracker is IP67-certified for rugged durability. Equipped with efficient solar cells, advanced cellular technology, and a long battery life of up to six years, PUI offers fleet managers a reliable, self-sustaining solution to enhance business operations. “This partnership with PUI represents a significant step in expansion for Geotab,” explains Sean Killen, Vice President Latin America, Asia, and ANZ at Geotab. “By helping our customers gain better visibility into their important assets both on the road and off, we are helping them both increase productivity and better manage their fleet.”

DHL DEPLOYS AMRS IN NZ LocusOne is a data-driven system that directs AMRs to pick and drop locations around the warehouse. Image: DHL Supply Chain.

HL Supply Chain has drawn on its global technology experience to deploy its first Locus Robotics warehouse automation solution for a New Zealand-based distribution centre (DC). The new Locus Origin autonomous mobile robots (AMRs) have been rolled out in Highbrook where

14 | MHD FEBRUARY 2024

DHL says it is further streamlining Schneider Electric’s product supply chain. These AMRs will collaborate with its warehouse team using the LocusOne warehouse automation platform. “We’ve been following the deployment of LocusOne at our company’s sites in the United States, Europe, and in Australia with keen interest, and we’re pleased to be introducing this technology for our customers in New Zealand,” says DHL New Zealand Managing Director Matt Casbolt. “DHL’s deployment of LocusOne in other locations has resulted in significant throughput efficiency improvements, and we foresee this technology providing genuine benefits to Schneider Electric’s supply chain. Implementing this technology also helps us to offer a more attractive working environment for our team members.”

This deployment is a part of DHL’s ongoing partnership with Locus Robotics, which will see 5000 Locus Origin AMRs rolled out globally. LocusOne is a data-driven system that directs AMRs to pick and drop locations around the warehouse. DHL team members assist them by picking, loading, and unloading items for despatch. “This deployment is a testament to our commitment to delivering the best solutions and experience to our customers and helping to achieve a faster order to delivery time,” says Schneider Electric Executive General Manager Ray Dunn. “We are proud to be a part of this journey with DHL Supply Chain and Locus Robotics.” The AMRs operate for up to 14 hours per charge and calculate the shortest possible routes to pick locations around the warehouse to maximise performance throughout the shift.”

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MHD INDUSTRY NEWS & OPINION

ARE YOU EQUIPPING THE FLEETS OF THE FUTURE? YOU SHOULD BE AT MEGATRANS2024

n 2024, MEGATRANS will bring together the most leading-edge technologies, that will be equipping the fleets of the future. From electric vehicles, through to charging stations, telematics solutions and fleet management software, companies offering these advanced technologies will for the first time come together in one place. The special exhibition space will be offering fleet managers a glimpse of the solutions that will be taking them into the

next decade. “Our vehicles are undertaking a oncein-a-century transformation, with the decarbonisation of transportation coming fast,” says Lauren Chartres, Show Director for MEGATRANS2024. “Technologies that were once out of reach are becoming a reality, and forward-thinking fleets are locking in their solutions now. Companies looking to play a part in fleets of the future need to be out there, at every opportunity available, to display their technology.”

The special exhibition space will be offering fleet managers a glimpse of the solutions that will be taking them into the next decade. Image: Scharfsinn/Shutterstock.com’

PORT OF NEWCASTLE WINS SUSTAINABILITY AWARD

ort of Newcastle has been recognised at the 2023 NSW Sustainability Awards, presented by the Banksia Foundation, winning the Large Business Sustainable Leadership Award. Sponsored by the NSW Government, with Minister for Climate Change, Energy, the Environment and Heritage, Penny Sharpe MLC presenting the awards, the NSW Sustainability Awards recognise those taking effective action on climate change, along with finalists’ innovation and commitment as an investment in the future.

“Port of Newcastle’s journey to embedding sustainability into everything we do is now five years in the making, with significant steps made and goals achieved,” says Port of Newcastle Chief Financial Officer and ESG Strategy Lead, Nick Livesey. “Having recently been made a Gold Partner with the NSW Government’s Sustainability Advantage Program and receiving a third consecutive 5-star rating through the Global Real Estate Sustainability Benchmark (GRESB), the 2023 Large Business Sustainable Leadership Award demonstrates our

The NSW Sustainability Awards recognise those taking action. Image: Port of Newcastle.

16 | MHD FEBRUARY 2024

commitment to a sustainable future,” he adds. Port of Newcastle’s Senior Manager of Investor Relations and ESG, Matt Stephenson, says the Award not only recognises what we have achieved to date, but the future commitments the Port is making to a more sustainable future. “We’ve made some significant inroads in recent years, from switching our fleet vehicles to fully electric, partnering with a green energy supplier to be powered by 100% renewable energy power and completing a port-wide lighting upgrade to more than 400 energy efficient LED lights,” he adds. “However, this year alone the Port has increased its SBTi Scope 1 and 2 emissions reduction commitment to align with a 1.5 degree warming scenario. We are also proud signatories to the United Nations Global Compact, the largest corporate sustainability initiative in the world, reflecting the Port’s commitment to aligning its ESG and diversification strategies with the principles of the United Nations Sustainable Development Goals.”

MHD INDUSTRY NEWS & OPINION

LINFOX LAUNCHES ADELAIDE FACILITY

outh Australian Premier, Peter Malinauskas MP and Linfox Executive Chair, Peter Fox AM launched Linfox’s new multi-milliondollar Adelaide Freight Terminal Facility in Regency Park. Linfox says the site facilitates the movement of up to 450 shipping containers per week through the connecting interstate cargo link, removing an entire local road transport leg. The 20,000-plus sqm facility stores and distributes goods for Linfox customers across the grocery, consumer goods, hardware, healthcare, apparel, and parcel sectors. “Given Australia’s dependence on road transport, there is a growing demand for a sustainable, efficient, and resilient rail freight network,” says Linfox Executive Chair Peter Fox AM.

The 20,000-plus sqm facility stores and distributes goods for Linfox customers. Image: Linfox.

18 | MHD FEBRUARY 2024

“This becomes even more critical as freight volumes rise each year. Improving interstate networks is a key priority for Linfox, because so many local industries – from farming, retail and mining to grocery, can benefit.” “This intermodal facility leverages Adelaide’s unique position as a national freight hub and will result in a more efficient freight system,” says South Australian Premier Peter Malinauskas MP. “The Linfox facility can receive freight directly by rail from Port Adelaide, Western Australia, the Northern Territory and the eastern states, reducing reliance on our road network.”

SUPPORTING THE LOCAL COMMUNITY The facility is a significant investment in the South Australian economy and: • Employs almost 100 South

Australians in warehousing, driving, safety, administration and management roles • Reduces freight movements on local roads • Is an employer of choice, led by Linfox’s values of loyalty, integrity, fairness and trust

SUSTAINABLE CREDENTIALS The project is targeting a 5 Star Green Star certification and includes: • 700kW solar PV array • 500kW battery storage • Smart LED lighting • Electric vehicle charging • Rainwater harvesting • Waste management initiatives Linfox recognises and thanks rail partners, Pacific National and Aurizon as well as construction partner, CIP Construction in bringing this project to life.

MHD INDUSTRY NEWS & OPINION

FEDEX COMMITS TO CARBON NEUTRAL OPERATIONS FedEx sees sustainability through the lens of opportunity, growth and profitability. Image: FedEx.

edEx is committing to making its operations carbon neutral by 2040 – 10 years ahead of the Paris Climate Agreement deadline by accelerating emissions reductions through the application of technology and data. At the pre-COP opening ceremony of the 28th United Nation Climate Change Conference (COP28), President-Designate Dr. Sultan Al Jaber highlighted the importance of openness, collaboration and inclusivity for the upcoming event which starts on November 30. As one of the world’s largest express transportation companies operating in more than 220 countries and territories, FedEx sees sustainability through the lens of opportunity, growth and profitability. Delivering a sustainable future is about finding sustainable solutions for growth. In the APEC Sustainable Futures Forum, FedEx Asia Pacific,

Middle East, and Africa President Kawal Preet highlighted making supply chains smarter using data and digital can deliver a sustainable future for everyone in the value chain. She emphasises the importance of collaboration among organisations and government to enable impact at scale. It’s an important time to move from talk to action. FedEx is investing $2 billion in decarbonisation in three major areas: electrifying its pickup and delivery (PUD) fleet, sustainable energy investments, and carbon sequestration: • P ickup and Delivery Fleet Electrification: FedEx is using a phased approach to creating an allelectric global PUD fleet by 2040. Electric vehicles (EVs) will make up half of our pick-up and delivery vehicle purchases by 2025, rising to 100 per cent by 2030, and then by 2040 all PUD fleet are EVs. • S ustainable Energy Investments:

FedEx is reducing greenhouse gas emissions through renewable energy and efficiency projects at its facilities around the world. Twentynine facilities generated on-and off-site solar energy in FY 2022 for example. [1] • Carbon Sequestration: FedEx helped establish the Yale Center for Natural Carbon Capture has invested $100 million in its efforts to develop better methods of carbon capture and storage, which will help offset aviation emissions. Empowering SMEs to operate more sustainably is crucial to making progress in cutting scope 3 emissions in the supply chain. FedEx emissions calculator, FedEx® Sustainability Insights (FSI), helps achieve that by giving visibility on a customer’s carbon emissions impact at an account and package level, providing information and control they need to make smarter supply chain decisions. MHD FEBRUARY 2024 | 19

MHD INDUSTRY NEWS & OPINION

QUEENSLAND FOOD DC IN WORKS

MX Transform says construction has started on a new food distribution warehouse in Queensland for global supply chain solutions provider for restaurant chains Martin Brower ANZ. Martin Brower pre-committed to a 15-year lease term on the new 9301 sqm temperature-controlled DC located at Karawatha on a 28,332 sqm site. “The new distribution centre represents a significant milestone for Martin Brower, doubling our capacity in Queensland and ensuring we can continue to deliver the highest quality of service to our customer,” says Martin Brower’s Managing Director for Australia and New Zealand Scott Hanigan. “We are committed to creating smart, sustainable supply chains,

and this site will play a pivotal role in helping achieve a 50 per cent reduction in emissions by 2030. The new site will provide 100 local jobs and enable us to enhance our logistics services further.” The custom-designed facility will deliver chilled, frozen, and ambient storage capability. The Brisbane south site will also provide refuelling, truck wash, and weighbridge facilities, and space to park and manage the Martin Brower fleet. LOGOS acquired the brownfield site in April 2021 due to its strategic location: the site is at the interchange of Ipswich and Logan Motorways, 23 km southwest of Brisbane CBD, giving unparalleled access to Brisbane’s key arterial road networks. Vaughan Constructions will build the facility, which TMX Transform

procured under competitive tender. TMX is providing ongoing construction delivery management and project support to Martin Brower until completion, expected in the second half of 2024. “We are thrilled to be working alongside Martin Brower and supporting them in the transformation of their Queensland operations,” says TMX Transform’s Director of Property, Sam Dellios. “Both LOGOS and Vaughan boast a proven record in delivering best-inclass facilities and we are excited to see this one come to life.” The facility is targeting certification as 5-star green star rated, incorporating sustainable design, energy management, recycling, and waste management facilities. The new DC is scheduled to be operational by late 2024.

AUSTRALIA POST EXPANDS MYER PARTNERSHIP

ustralia Post and Myer have announced a new three-year strategic partnership to further enhance Myer’s online customer experience. Under the agreement, Australia Post will be the primary e-commerce fulfilment partner for Myer, covering the majority of Myer’s online orders. The comprehensive partnership also includes Australia Post’s Metro Service, which offers next-day delivery for Myer e-commerce customers in metropolitan Melbourne, Sydney, Brisbane, and the Gold Coast. “Myer is a valued and long-term partner of Australia Post, and the extension and expansion of our carrier services contract underscores our mutual commitment to delivering world-class service for Myer customers,” says Australia Post’s Executive General Manager Parcel, Post

20 | MHD FEBRUARY 2024

and eCommerce Services Gary Starr. “This agreement will ensure that Myer e-commerce customers continue to benefit from both delivery speed and certainty when they shop online. “Supporting our partners’ growth and helping them to unlock the full potential of their e-commerce business through our extensive delivery network, sits at the heart of Australia Post, and I look forward to continuing our support of the Myer business for another three years.” In the past 12 months, Australia Post notes that it delivered more than five million parcels for Myer. Tony Carr, Myer’s Executive General Manager of Supply Chain, says that Australia Post is one of the most trusted organisations in the country, and it shares Myer’s customer first approach, which is essential in providing a leading online experience to customers.

“Our ongoing partnership with Australia Post as our e-commerce fulfilment partner is a key part of our Customer First Plan to operate our supply chain effectively and efficiently, in the best interest of our customers.” In addition to delivery direct to homes, the partnership provides Myer e-commerce customers more than 4700 collection points, including post offices and parcel lockers across Australia, further streamlining the overall online shopping experience. Australia Post will be the primary e-commerce fulfilment partner for Myer. Image: Australia Post.

MHD INDUSTRY NEWS & OPINION

SAP APPOINTS NEW ANZ PRESIDENT

AP has announced the appointment of Angela Colantuono as President and Managing Director for SAP Australia and New Zealand (ANZ) following Damien Bueno stepping down from the role. It notes Damien was President and Managing Director for SAP ANZ for almost six years and that he will now focus on global cloud transformation strategy within the company. Angela joined SAP in 2017 and has worked with some of ANZ’s largest organisations to deliver strategic and impactful outcomes. She previously held roles as Vice President and Head of SAP SuccessFactors for ANZ, and most recently as Head of SAP SuccessFactors HXM for Asia Pacific and Japan (APJ). “Australia and New Zealand is a key market unit for the APJ region, as one of the fastest-growing regions

globally for SAP,” says Paul Marriott, SAP Asia Pacific Japan. “I am confident Angela’s uncompromising focus on driving customer value, and building a strong partner ecosystem will support the next phase of growth in ANZ. I thank Damien Bueno for his leadership over the last five years, delivering continued customer success and growth for ANZ, and know he will bring extensive experience to his global role.” In her new role, Angela Colantuono, President and Managing Director, SAP Australia and New Zealand will continue to accelerate our customer’s move to the cloud, enabling organisations of any size to digitally transform with SAP. “As our customers navigate an increasingly complex operating environment with inflation, supply chain challenges, increased cyber

threats, and regulation, technology has become critical to helping them respond to and manage this. “I look forward to working with our customers to help solve for many of these challenges and build operational resilience, leveraging SAP capabilities including Business AI to automate their processes, enhance the user experiences and improve their decision-making.” With her appointment, Angela will report directly to Paul Marriott. She will continue to be based in Melbourne.

Angela Colantuono joined SAP in 2017. Image: SAP.

NEW CEO AT PORTS VICTORIA

n a significant move for the state’s commercial ports sector, Craig Walker has been appointed as the new Chief Executive Officer of Ports Victoria. This announcement was made by the Allan Labor Government, marking a new era of leadership and expertise for the organisation. Melissa Horne, the Minister for Ports and Freight, expresses her delight in Craig’s appointment. “I am delighted to announce Craig Walker’s appointment as Ports Victoria CEO – his extensive experience will be vital as we manage rapid growth to meet

The appointment comes at a time when freight volumes are projected to more than double over the next thirty years. Image: Ports Victoria.

22 | MHD FEBRUARY 2024

the future needs of our freight task,” Melissa says. She emphasizes the crucial role of Victoria’s commercial ports as engines for economic growth and looks forward to Craig’s leadership and insight in the sector. Craig, set to begin his new role in February 2024, brings a wealth of experience to the table. His career highlights include various advisory roles within the government, as well as key positions such as Chief Operations Officer and Executive General Manager at Gladstone Ports Corporation. He has also worked with QR National, a rail freight company, and served on several boards, including North Queensland Bulk Ports. The appointment comes at a time when freight volumes are projected to more than double over the next thirty years. Victoria’s commercial ports, which annually handle almost a quarter of Australia’s total food and

fibre exports, amounting to roughly $26 billion, are critical to the state’s economic prosperity. Since its inception in 2021, Ports Victoria has been managing maritime navigation and operational safety for the ports of Melbourne, Geelong, and Hastings, and overseeing operations at the port of Portland. Craig shares his enthusiasm for the new position. “I’m very excited at the opportunity and to be working with the team in leading Ports Victoria in an important period of growth, diversity, and change,” he says. Craig underscores the significance of the organisation’s role in facilitating the growth and prosperity of Victoria’s commercial ports. With Craig Walker at the helm, Ports Victoria is poised to effectively navigate through the challenges and opportunities of a rapidly evolving freight and commercial port landscape.

HANGCHA IS RANKED AS THE 8TH LARGEST FORKLIFT COMPANY GLOBALLY

NEW ARRIVAL: LITHIUM 0.2T A SERIES STORAGE ASSIST VEHICLE We are happy to announce the launch of our new 0.2t A series lithium storage assist vehicle. This is a compact and flexible vehicle that is perfect for picking small goods in warehouses, hardware stores, supermarkets etc. The unit has a 100kg hydraulic powered picking table, and also 115kg capacity lower storage tray. The 24v/125ah lithium has fast and opportunity charging which greatly improves working efficiency. Safe & Reliable Even at great heights, the operator feels confident thanks to the all-around safety protection, such as automatic closing doors, right and left hand sensing, front and rear flashing lights, tilt switch sensor etc. All these will help ensure operators are in the correct position as they operate the equipment, resulting in fewer injury risks and less potential downtime.

With over 200 units in stock and a new spare parts division our dealer network can support all your needs.

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Easy Maintenance The AC motor significantly reduces the maintenance costs and downtime. Maintenance free lithium batteries reduce downtime and provide greater life span than traditional wet cell or gel batteries.

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MHD INDUSTRY NEWS & OPINION

WALMART INSTALLS SWISSLOG SOLUTION

wisslog has announced that Walmart will install a Swisslog automation solution within its Valdosta, GA, facility to enable seamless material flow and increase uptime. Walmart is planning to break ground on the milk processing facility and the project is scheduled to be completed in 2025. The intralogistics warehouse automation and software company’s facility follows a series of successful installations globally, including in Australia and New Zealand for leading supermarket chains. “Swisslog has a long history with pallet technology, so our expertise in this area can help supermarkets, grocery stores and e-grocery companies achieve optimal space utilisation and throughput,” says Charles John, Senior Sales Consultant

The automation solution operates on synchronised intelligence from Swisslog’s SynQ. Image: Swisslog.

24 | MHD FEBRUARY 2024

– Food and Beverage, Swisslog Australia and New Zealand. “When demand for a product, like milk, is increasing, but land is becoming increasingly expensive, an automated warehousing solution that makes better use of the same space, or footprint, can help companies like Walmart, or local players, to gain a competitive edge.” According to Walmart, the automated storage and retrieval solution (ASRS) will bolster the company’s capacity to meet consumer demand for milk. It continues the company’s commitment to building a more resilient and transparent supply chain to deliver high-quality products. This is Walmart’s second milk processing facility. The company worked with Swisslog to open its first milk processing facility in Fort Wayne, IN, in 2018.

Designed by Swisslog’s automation experts, the ASRS brings together five Vectura pallet stacker cranes with KUKA palletising and de-palletising robots, a ProMove pallet conveyor system, as well as a conveyor system for small loads. The automation solution operates on synchronised intelligence from Swisslog’s SynQ software, which provides warehouse management, material flow and automation control system functionality in a single, modular platform. “We are excited to partner with Walmart once again to open its second milk processing facility,” says Sean Wallingford, President and CEO of Swisslog Americas. “From the initial discussion through design completion, it has been a very hands-on, collaborative, and proactive approach.”

MHD INDUSTRY NEWS & OPINION

COMBATTING SILICA WITH WET SWEEPING

The true solution to combating industrial dust is wet sweeping. Image: Conquest Equipment.

onquest National Sales Manager, Chester Larsen, speaks to MHD about the dangers of silica and how the industrial cleaning equipment company can combat it with its wet sweeping solutions. As attention on the perils posed by airborne dust intensifies, warehouse, manufacturing, construction and industrial facilities managers are grappling with how to mitigate the risks within their workplace, keep their workforce safe, and avoid penalties for non-compliance. Adopting effective dust control measures not only ensures regulatory compliance, but also safeguards operational continuity.

SILICA DUST: THE SILENT KILLER IN INDUSTRIAL AND CONSTRUCTION WORK ENVIRONMENTS Silica dust, composed of microscopic crystalline silicon dioxide particles, is found in many common building materials. One hundred times smaller than a grain of sand, silica dust easily becomes airborne through standard material handling and processing processes, including cutting, grinding, drilling, and handling diverse materials. When inhaled, the small silica dust 26 | MHD FEBRUARY 2024

particles pose serious health risks to anyone exposed to the contaminated air. Under national WHS (workplace Health & Safety) laws, workers and management have obligations that relate to silica dust exposure. Failing to manage silica dust risks heavy fines and enforceable warnings, potentially leading to site closures. The most recent measure is the prohibition of engineered stone. “It’s important to stay close to statebased workplace safety regulators,” says Conquest National Sales Manager, Chester Larsen. “These regulations are evolving as we collectively better understand the risks of silica dust, and they want to work with manufacturers, businesses, and construction companies to improve dust control practices.”

DAMPENING THE THREAT: WET SWEEPING SUPERIOR TO DRY SOLUTIONS Using water is the most effective way to dampen the threat of dust. Water weighs down dust particles, preventing them from becoming airborne, and more easily captured by dust control measures. This includes floor cleaning. The true solution to combating industrial dust is wet sweeping, which state regulatory and SafeWork Australia,

recommend. Unlike dry sweeping, wet sweeping does not rely on filtering airborne particles. Instead, through the application of water, it prevents particles from becoming airborne in the first place during both the sweeping and disposal process. “The industry is shifting towards integrating water into processes to counteract dust,” says Chester. “Conquest, with its innovative technology, strategic methodologies and unwavering commitment to health, safety and environment sustainability, is proud to work with our clients and the industry to provide the solutions to this need.”

CONQUEST HEAVY DUTY WET SWEEPING SOLUTIONS Conquest’s CC1200 combination sweeper scrubber uses water to minimise airborne dust during cleaning. Offering dual functionality, the CC1200 also translates to a 50 per cent labour saving and reduces operational costs, too. The Conquest XR is a dedicated large capacity, ride-on scrubber that incorporates a light sweep functionality. Heavy duty and corrosion resistant, the XR is ideal for use in industrial work environments.

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MHD INDUSTRY NEWS & OPINION

NHVR REVEALS OPERATION FORAGER OUTCOMES

he National Heavy Vehicle Regulator (NHVR) has announced the successful conclusion of Operation Forager, a four-week initiative dedicated to combating heavy vehicle driver fatigue during the holiday season. The NHVR partnered with police across the country to conduct Operation Forager, which commenced 20 November 2023, to heighten awareness about the critical nature of managing fatigue while driving heavy vehicles. The national operation represents another step forward in the NHVR’s ongoing commitment to enhancing road safety and ensuring the wellbeing of both heavy vehicle drivers and the wider community. “Work diary and fatigue-related education was provided in 623 of these intercepts, accounting for

approximately 156 hours of roadside education with drivers, highlighting the NHVR’s commitment to safety within the heavy vehicle industry,” says Paul Salvati, NHVR Chief Operations Officer. “Operation Forager shows the effectiveness of our holistic approach to safety, that combines education with enforcement, ensuring that heavy vehicle operators are not only aware of the regulations but also equipped with the knowledge to make informed decisions on the road about their safety. “I would like to commend the heavy vehicle industry for their safety efforts over the busy holiday period, particularly during the severe weather events we experienced across the country.” Paul notes Operation Forager placed a strong emphasis on the importance

of maintaining accurate work diaries, as a critical tool in complying with work and rest hour requirements and preventing fatigue-related incidents. “By investing significant time and effort in educating heavy vehicle drivers on work diaries and fatigue, especially new drivers, we aim to create a lasting impact that extends beyond the duration of this operation,” he adds. “Education is an investment in safety. By ensuring drivers understand the importance of accurate work diaries, we are arming them with the knowledge to actively manage their work and rest hours.” Paul explains while education is a powerful tool in preventing fatiguerelated incidents, the NHVR doesn’t hesitate to enforce the Heavy Vehicle National Law where required.

The national operation represents another step forward in the NHVR’s ongoing commitment to enhancing road safety. Image: Shutterstock, Lukas Gojda.

28 | MHD FEBRUARY 2024

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MHD SUSTAINABILITY The federal government is in the process of finalising proposed amendments to the Corporations Act 2001 that will concretise emissions reporting requirements for companies based on size and industry. Image: 3rdtimeluckystudio / Shutterstock.com.

ESG IN PRACTICE Circular Supply Chain Advisory’s Brendan O’Keeffe talks ESG, reporting, and what it all looks like in practice.

lot of the conversation around sustainability has been taking place at a high level – with big picture targets and admirable goals – but not as much is said about how we actually get there. With regulations on emissions reporting tightening up this year, the time to know is now – lest you be left behind. MHD asked Brendan O’Keeffe of Circular Supply Chain Advisory to get to the bottom of some frequently asked questions.

REPORTING FRAMEWORKS One question MHD had for Brendan is what kind of reporting mechanism is most common. “There are a number of ESG reporting frameworks that have been developed, the two most prominent of which are the Sustainability Accounting Standards Board (SASB) standards and the Global Reporting Initiative (GRI) standards,” 30 | MHD FEBRUARY 2024

Brendan says. “There are so many acronyms in this industry, and it can be a minefield, but the two most common are GRI and SASB – the former more common globally, the latter most adopted in the US.” Differing taxonomies can present difficulties for users, but happily Brendan reports that there is a convergence towards a more uniform code governing reporting. “There is an alignment taking place towards a more globalised standard with a more common language,” he says.

THE COMPLIANCE LANDSCAPE 2024 is the year in which reporting regulations will really start to pack a punch, Brendan says. The federal government is in the process of finalising proposed amendments to the Corporations Act 2001 that will concretise

emissions reporting requirements for companies based on size and industry. If passed, climate-related financial disclosure legislation will likely go into effect mid-2024. “The legislation mandating reporting requirements will be phased in, firstly making Scope One and Two reporting compulsory, before scaling up to Scope Three later,” Brendan says. “This will be a big change as not every organisation is fully compliant with Scope One and Two reporting as of now. Right now, only 30 per cent or so of companies are reporting Scope One and Two; and for Scope Three, only 10 per cent of those who will be mandated to report are currently reporting.” Clearly, there’s a lot of ground to be made up in relatively little time. Those that act now will fare better under the new regime. “There are organisations that take

“

There are many people who currently have a data analyst skill set, for example, who might be moved from a supply chain, logistics or procurement analyst to a sustainability analyst – that is, using the same skillset but look at ESG and ‘value chain’ related data through a new and different lens.”

”

processes will have to change the way they operate.

WHAT WILL THESE CHANGES LOOK LIKE? the initiative to adopt compliance frameworks to work towards better practice, and those that wait for compliance to drive them,” Brendan says. “Waiting till regulations come in puts you in a tough position. The biggest challenge is that the data required for complete scope reporting is complex. Even if you’re not a large organisation, if you’re partnered with a large organisation you’ll indirectly feel the pressure to lower emissions. That is to say, the regulatory compliance will have a waterfall effect, where larger organisations will be mandated to report but will require cooperation from all their external partners – typically small or mid-tier companies – to do so. For example, think of the thousands of small suppliers to big retail organisations like Coles or Woolworths.”

IMPLEMENTING SYSTEMS Achieving big things often means big changes to how you do things. New challenges create new opportunities, and Brendan says systems, people, and

“From a systems perspective, there are already ESG or sustainability reporting systems being developed,” he says. “In parts of the world like Europe and North America, corporates are already using ESG software platforms, which help with data capture and integrate with major business software tools, like SAP. These systems are like an add-on but help with real-time reporting.” Brendan expects that more software will be developed to fit different company size and cost requirements. On the people front, a big challenge – and opportunity – will come from skill transfer: “There are many people who currently have a data analyst skill set, for example, who might be moved from a supply chain, logistics or procurement analyst to a sustainability analyst – that is, using the same skillset but looking at ESG and ‘value chain’ related data through a new and different lens.” Both the people and the tech will have to be tied together with new systems and protocols. “Businesses will need to create true

MHD SUSTAINABILITY alignment in their processes – starting at the top,” Brendan says. “The leadership alignment or commitment is probably the first thing that’s important. Often, in the small-tomedium space, sustainability is seen as an arm or a leg, not the core body of the business. At the moment it’s still often an individual function or an outsourced activity, whereas it needs to be made central to the business. That way, you bring a cross-functional collaboration to sustainability in the business – rather than treating it as something considered solely for regulatory compliance. Companies need to activate sustainability actions because they realise the value for their business – as a competitive advantage.”

DATA INTEGRITY The point of new regulations around ESG is to create a market that has meaningful incentives that will change corporate behaviour. To that end, there will be strict monitoring of performance as well as independent verification of outcomes. “Under ASX requirements any sustainability report needs to be verified and audited before its officially submitted,” Brendan notes. “That is a safeguard mechanism to try and ensure that the data published has been assessed, checked, and is meaningful to the business. In most cases this would be done by a consulting enterprise that doesn’t have a vested interest in the result.” Additionally, the Australian Competition and Consumer Commission is keeping watch to ensure companies don’t engage in ‘greenwashing’ – a misleading form of marketing whereby companies seek to pass themselves off as more environmentally friendly than they actually are. “Organisations can now be fined up to 30 per cent of the company’s revenue during a relevant period for overstating their sustainability claims,” Brendan says. “That’s a pretty large stick for organisations, in combination with third-party auditing. That means it’s not worth it for companies to be overextending their claims.” Those looking to escape the stick – and get the sustainability carrot – need to get moving to keep up with the times and the new obligations and responsibilities that go with it. ■ MHD FEBRUARY 2024 | 31

MHD COVER STORY

LINDE SEES LI-ION LIFT Linde Australia is rolling out new Lithium-ion forklifts to meet growing demand for clean, green solutions that improve safety and efficiency. MHD spoke to Greg Wood, Technical Solutions Manager at Linde Material Handling (Australia) to find out more.

ales of electric forklifts overtook internal combustion machines some time ago, and the gap is widening. As in the automotive sector, traditional counterbalance forklifts are now being displaced by electrically powered machines, which are generally more energy efficient, cheaper to run, cleaner, safer, and easier to maintain. Traditionally, battery-powered machines were limited to lighter indoor applications, but advancements in battery technology now see electric forklifts used outdoors and in rough terrains, carrying increasingly heavy 32 | MHD FEBRUARY 2024

and bulky loads. While lead-acid batteries are still the dominant force, powering around 60 per cent of electric forklifts, demand for lithium-ion powered machines is accelerating fast. “We can see a very definite move to Li-ion machines,” says Greg Wood, Technical Solutions Manager at Linde Material Handling (Australia). Since the first Li-ion patent was granted in 1989, the technology has evolved, improved and become more economical, finding its way into fleets around the world. “We have shipped a plethora of

trucks with Li-ion batteries at Linde Australia, and we can only see demand increasing as the options unfold in our product portfolio,” he adds. Li-ion models are available throughout the Linde range, from the compact three-wheeled E12–E20 EVO series, to the E100-E180 series of heavy trucks capable of lifting loads of up to 18 tonnes to heights of up to 10 metres. “Across our truck portfolio, we have nearly 100 per cent of our trucks available with Li-ion,” explains Greg. “We can offer up to three different battery capacities in each truck series

MHD COVER STORY

In test cases, Li-ion has shown itself up to 30 per cent more energy efficient than lead-acid. Image: Linde Australia

Since the first Li-ion patent was granted in 1989, the technology has evolved, improved and become more economical, finding its way into fleets around the world. Image: Linde Australia

– and always at least two charger powers per voltage class. This gives customers a huge variety of different options when deciding on a Li-ion powered truck.” When considering Li-ion power systems, it’s critical to be aware that just retrofitting a lithium battery to a conventional electric forklift doesn’t provide all of the benefits which Li-ion systems can offer. That’s why Linde equipment offers integrated Li-ion power systems, which are designed as part of the whole operating system using CANBUS technology to ensure that maximum safety, performance, and efficiency potential is met.

ENERGY EFFICIENCY OF LI-ION Even before the current fuel price hikes, battery-electric forklifts were a popular option in warehouses and

distribution centres. However, rising energy costs and inflation are focusing attention on increased energy efficiency, where

their high energy density. “A Li-ion battery has a higher power delivery because the voltage discharge curve is flatter than lead-acid as the

Li-ion excels. Li-ion shows significantly higher energy system efficiencies – in test cases, up to 30 per cent higher than for lead-acid, 38 per cent higher than for fuel cells, and a massive 58 per cent higher than for IC trucks. According to Greg, Li-ion battery systems generally deliver significant savings for companies drawing their electrical energy from the grid. “In most test cases, with a leadacid battery with a 50 Hz charger, only 56 per cent of the energy ends up powering the truck,” he adds. “If the company uses an HF charger for the battery, the system efficiency is much better – up to 73 per cent. The combination of Li-ion batteries and matched chargers can offer the highest system efficiency – at least 85 per cent. With smart use of energy recuperation (regenerative systems), the efficiency values can be even higher.” Greg notes that this can add up to a 30 per cent energy saving compared to a lead-acid battery with a 50 Hz charger.

battery charge level drops,” explains Greg. “When comparing lead-acid and Li-ion batteries with an equal kWh rating, lithium will do more work for you. Their higher power delivery and useable capacity means that a truck will run for longer and perform better over the discharge cycle.” Not only do the batteries need to be charged less frequently, but thanks to their chemical composition, they’re also much quicker to charge than their lead-acid counterparts. Many of the Linde batteries can achieve a full charge cycle within as little as one hour. “What’s more, these batteries are also suitable for intermediate charging as often as required, eliminating the need for a battery change/swap,” explains Greg. “Depending on the intensity of the operation, all that’s needed is a quick recharge during the lunch break and the vehicles are ready to go for several more hours. “The unique characteristics of Li-ion batteries offer the options of fast charging and opportunity charging, which increases the truck availability and overall flexibility. Even when the operator is out of the forklift, there is no downtime. “With conventional batteries, it is recommended to only ever start full charging cycles in order to protect

PRODUCTIVITY GAINS THROUGH LI-ION It’s not just energy costs driving the interest in the new battery technologies. Li-ion batteries improve the productivity of electric forklifts due to

MHD FEBRUARY 2024 | 33

MHD COVER STORY the batteries. It’s completely different with Li-ion batteries: even extremely short interim charging of just a few minutes is not only allowed, but actually preferable. “Their ideal state of charge is about 20 per cent to 80 per cent of the total capacity. The flexibility of the charging process significantly increases the overall vehicle availability.”

TOTAL LIFETIME COST SAVINGS “Overall, the Li-ion battery, with at least 2500 complete charging cycles, can be charged almost twice as often as a lead-acid battery,” Greg points out. “Furthermore, Li-ion batteries require no maintenance since no water needs to be topped up, for example. Due to the closed system of cells and modules that are arranged in a row in batteries, the lithium battery also does not release emissions, which is good news from an employee health perspective. “Due to their chemistry, Li-ion batteries have a significantly longer service life than lead-acid batteries, which offers an improved ROI for customers. The customer benefits also create additional opportunities for savings across the entire service life of the battery.”

MINIMISING SAFETY RISKS The switch to Li-ion also has workplace health and safety benefits. “When we eliminate the need for battery changing, we minimise operator handling of batteries and the need for battery rooms,” says Greg. “And since the Li-ion cells are virtually maintenance-free, the operators cannot come into contact with dangerous acids.” While the hydrogen produced by lead-acid batteries can turn into dangerous oxyhydrogen gas, Li-ion batteries have no such risk. In accidents involving forklifts, enormous forces are exerted due to the weight. To ensure that the Li-ion batteries in the vehicles are protected even in extreme situations, Linde’s bigger batteries (48 V and 90 V) have been subjected to a crash test of the maximum load. The multi-level safety system in place with Linde Li-ion batteries 34 | MHD FEBRUARY 2024

In addition to greater energy efficiency, switching to Linde Li-ion affords numerous health and safety benefits. Image: Linde Australia applies at cell, module and battery level. In addition, battery management ensures optimum battery usage by constantly monitoring and coordinating vehicle functions, charging processes and the battery system. This prevents damage caused by overpressure, overheating, overcharging or deep discharge.

IN-HOUSE MANUFACTURING The KION Group (Linde’s parent company) produces most of its own

Li-ion batteries at the KION Battery Systems plant in Karlstein am Main in Germany. The in-house production means that Linde Performance Plus batteries are designed alongside the machines into which they will ultimately be installed. “Batteries are manufactured here for an extremely broad range of trucks,” says Greg. “The configurations for the batteries are consequently also extremely varied, which means greater value is placed on high-quality craftsmanship

MHD COVER STORY than on large-scale automated processes. At present, no fewer than 80 employees work in production, and in research and development, at the KION battery plant. “The distinct benefit of KION’s battery R&D lies in the in-house design, which perfectly aligns the battery with the forklift. State-ofthe-art production facilities guarantee quality and provide our customers with high-performance battery solutions tailored to their individual operational needs.” And as forklifts become more technologically advanced, with onboard energy management systems, performance monitoring and telematics, KION is able to design batteries as smart as the machines they will power.

AN EYE ON SUSTAINABILITY Environmental criteria are increasingly applied to any major purchase today, and Linde executives stress that their Li-ion batteries and vehicles are highly efficient, state-of-the-art energy systems that protect people and the environment. “Linde’s Li-ion powered trucks meet all sustainability requirements, with zero-emission operation and the highest system efficiencies for charging,” explains Greg. “The use of Li-ion powered forklifts and warehouse equipment makes any application significantly more energy efficient, resulting in the same overall output being achieved using less energy. “Certified life cycle-assessments show that the use phase of trucks is the main driver of pollution, and switching to highly efficient Li-ion technology can significantly reduce your carbon footprint.” Linde is also conscious of its endof-life responsibilities, employing various recycling strategies. After their first life, Linde Li-ion batteries can be refurbished and re-used in another truck application. After another truck life, the batteries still have enough remaining capacity to be used for further applications. The single components can be recycled and re-used in the production of new Li-ion cells through KION’s strategic partner, Li-Cycle, in Magdeburg, Germany. The Group’s

objective is to have a total of up to 5000 tonnes of end-of-life battery material professionally and sustainably processed by Li-Cycle by 2030. This is equivalent to around 15,000 large forklift batteries.

“Before selecting a solution, together with the customer, we analyse the individual application with regard to energy infrastructure, potential power limits or peaks, usage patterns and processes and, of course, ROI.”

LI-ION MIGHT NOT SUIT ALL

LINDE AND LITHIUMION BATTERIES

While Linde offers Li-ion versions of almost its entire product line, it continues to manufacture and sell lead-acid models because the new solution might not be perfect for every customer. “We offer two options when a customer decides to go for an electricpowered truck: lead-acid and Li-ion,” explains Greg. “Both have their benefits – for leadacid, the major one being the lower initial costs. We do not specifically favour one energy system over another. We study each individual application and offer the energy system that best fits the customer’s processes, targets and priorities. When we’re approached about a new forklift, we try to ensure that the machine is fit for purpose. “A crucial part of that is determining which energy system is the most suitable. This includes determining if the energy option fits the application, if the infrastructure is suitable, what environmental benefits can be achieved and, of course, what cost implications the choice will have.

A lithium-ion (Li-ion) battery is a type of rechargeable battery characterised by a higher specific energy, higher energy density, higher energy efficiency, longer cycle life, and longer calendar life first introduced in 1991. Beside their widescale use in portable consumer electronics, laptop computers and mobile phones, Li-ion batteries are now widely used in electric cars and powered equipment. Linde presented its first electrically driven forklift truck, the E10 – E15, at the 1971 Hanover Fair. In 2017, the first E14 – E18 ION electric forklifts with lithium-ion technology rolled off the production line at Aschaffenburg. In late 2021, KION combined with BMZ Holding GmbH to form the KION Battery Systems (KBS) joint venture to produce lithium-ion batteries for industrial trucks. April 2022 saw the opening of a second production line for lithium-ion batteries in Karlstein am Main, Germany. ■

Conscious of its end-of-life responsibilities, Linde employs various recycling strategies. Image: Linde Australia

MHD FEBRUARY 2024 | 35

CHECKING SUPPLY CHAIN’S PULSE Peter Jones discusses the results of Prological’s annual survey of supply chain industry leaders.

rological’s new Supply Chain Pulse-Check Survey is out now and Peter Jones, Founder and Managing Director of Prological, says there have been significant shifts and new trends in the supply chain and logistics industry in the year since Prological conducted its last survey. Peter notes that the predominant sentiment of pessimism about the economy, prevalent in the previous year’s responses, has now stabilised. “Last year, people were reasonably pessimistic about the economy and what was coming around the corner,” Peter says. “That has now flatlined.” This change in economic outlook has been pivotal, with last year’s survey indicating that 90 per cent of respondents anticipated a worsening economy in 2023, a prediction that did not materialise. Now, there is a general consensus that the economy will more or less maintain its current state. “People now think that the economy throughout 2024 will, at worst, stay as it is.” A significant trend in the industry, as identified by the survey, is the increased focus on enhancing visibility within supply chains. Peter points out a substantial leap in this area: “Visibility has really lifted. Companies told us in our previous survey that visibility was a key priority on the agenda, and they seem to have delivered on that priority.” Approximately 70 per cent of respondents now claim to have either full end-to-end visibility over their supply chain or are very close to achieving it, a notable increase from 57 per cent in the previous year. This enhancement in visibility is a clear indicator of how companies have been proactive in implementing systems and resources to achieve greater transparency and efficiency in their operations. 36 | MHD FEBRUARY 2024

Top challenges facing supply chain this year. Image: Prological Peter also points to the evolving dynamics of skills and recruitment within the supply chain and logistics industry as a key takeaway from the survey. A stark contrast is drawn between last year’s scenario and the current state of affairs. Peter explains: “In last year’s survey, skills and recruitment was seen as quite a significant issue. This was primarily due to the phenomenon known as the ‘great resignation’, which had a notable impact on nearly 60 per cent of businesses, either partially or significantly.” There was for a time a cascading wave of pay raises throughout the workforce as one person would leave a job for higher pay and then their replacement would

in turn have to be paid more to fill the vacant position, and so on. This had a big inflationary impact on salaries, Peter says, as there wasn’t enough of the right skilled labour to fill in all the new gaps as people moved around. “This scenario created a challenging environment where, regardless of the financial incentives offered, companies often couldn’t find the talent they needed,” he says. “The situation has now normalised, thanks in part to the recalibration of economic expectations. Last year, with 90 per cent of respondents bracing for a tighter economy, many companies halted the creation of new roles, leading to a decreased pressure on staffing growth. This is not to say this issue has gone,

it has just been better calibrated within the new norms.” At the same time, the re-opening of immigration post-COVID has meant more talent is available for basic supply chain jobs, enabling a smoother flow of personnel within individual companies.

“

WAREHOUSE FOCUS Since the previous survey, there has been an even greater emphasis put on finding the right warehouse, Peter says. “Forty percent of respondents said they’re planning to expand or move into a new warehouse within the next five years. This trend is driven by two primary factors. Firstly, businesses are recognising their growth cycles and the need for more space. Secondly, there is an increasing awareness of the economic benefits of transitioning from older warehouse designs to newer, more efficient ones.” Such expansions and upgrades to warehouses are influenced not just by the need for space but also by the desire to lower operating costs and improve service levels through betterdesigned facilities, Peter says. This expansion comes in the context of historically low vacancy rates in major cities like Melbourne and Sydney. “The vacancy rates are still historically really low, indicating a challenge in finding suitable space. Despite this, there has been a slight easing in these rates over the past year, suggesting a gradual shift in the market.” Looking ahead, Peter predicts significant changes in the warehouse landscape. “In the next two to three years, we’re going to start seeing a lot more knockdown-rebuild of

In last year’s survey, skills and recruitment was seen as quite a significant issue. This was primarily due to the phenomenon known as the ‘great resignation’, which had a notable impact on nearly 60 per cent of businesses, either partially or significantly.

”

warehouses.” This reconstruction is expected to cater to the evolving needs of the industry, including accommodating larger vehicles and incorporating advanced automation and sustainable energy solutions. Peter elaborates on the specific requirements that are shaping the design of new warehouses. These include increased building height,

Percentage of businesses surveyed who carried out emissions reductions. Image: Prological.

facilitating the accommodation of larger interstate trucks, and the need for more robust infrastructure to support advanced automation. Moreover, the push for sustainability is evident in the design considerations for solar systems and other ecofriendly features. Companies, Peter says, have realised that little sustainability progress can be made in the transport sector, shifting more of the onus onto warehouses. “A lot of the sustainability initiatives within the Australia-New Zealand environment are being driven by international companies,” Peter says. “These international standards often do not align with the capabilities of the local industry, especially in the context of sustainable energy in transport. Warehouses are seen as an area where you can make real gains in sustainability. Almost every Greenfield facility now has some level of energy generation capability.” Furthermore, Peter touches on an important aspect of workforce satisfaction and retention in this changing landscape. He likens the preference of blue-collar workers for modern, well-equipped warehouses to that of white-collar professionals who seek comfortable and appealing office spaces. “There’s enough, new generation warehouses around for blue-collar workers to take that same mindset to their job interviews,” he states, highlighting the importance of workplace quality in attracting and retaining skilled workers. The Supply Chain Pulse-Check Survey, Peter says, indicates a significant evolution in the warehousing and logistics sector. With an emphasis on expansion, modernisation, and sustainability, the industry is poised for substantial changes in the coming years, reflecting broader trends in business growth, technological advancement, and workforce expectations. “Overall, it was pleasing to see a greater level of optimism around supply chains this year. The challenges are evident, but it is clear businesses have learned from past failures, and in response, we are seeing rapid upgrades in supply chain capability and investment to gain competitive advantage.” ■ MHD FEBRUARY 2024 | 37

MHD INDUSTRIAL PROPERTY

DELIVERING BIG PROJECTS MHD speaks to Armin Ordagic of A1 Precision Solutions to learn how A1 delivers bespoke projects for a variety of clients – on time, on budget, on brief, and with no fuss.

ur priority at A1 Precision Solutions is to be on time, on brief, and on budget,” says Armin Ordagic, General Manager Finance & Operations, at A1 Solutions. “A lot of people talk a big game about bespoke projects and promise the world, but it doesn’t matter if the project isn’t delivered on time, to the client’s brief, and within their budget. For us, it’s about delivering what the client actually wants in terms of output and quality.” Which isn’t to say A1 Precision Solutions – a one-stop shop for project management – doesn’t value innovation, too. But innovation done right comes naturally out of years of experience in project management. “At the end of the day, we like bespoke projects with unique challenges – projects that others wouldn’t have the capability to take on,” Armin says. “At A1 we have the depth and breadth of experience to deliver the right solution for our clients – whether it’s simple or innovative. We put a lot of trust in our expert specialists to discern what’s right for the client. And it’s out of this real-world focus and decades of experience solving real problems that the best innovation comes.” A1 has been in business for more than twenty years, and over time has developed a team uniquely positioned to offer comprehensive commercial and industrial turnkey building solutions. A1 provides complete services for commercial buildings and industrial facilities. This includes fit-outs and extensions for offices, refurbishments of building exteriors, end-of-lease services, cool room and freezer builds and maintenance, showrooms, maintenance, and assistance with 38 | MHD FEBRUARY 2024

A1 Precision is a one-stop-shop for clients with both warehousing and office needs. Image: A1 Precision

plans and permits. It also offers a full suite of services for warehouse operations, including layout design, workflow optimisation, installation of Australian-made pallet racking, shelving, mezzanines, materials handling equipment, safety consultancy, line marking, fencing, and WorkSafe compliance solutions. On top of these, it also handles supply chain and logistics consultancy, civil works, and all aspects of warehouse storage solutions, including various types of racking systems, conveyor systems installation, safety inspections, and reconfigurations.

SINGLE POINT OF CONTACT “What sets us apart is that we’re a one-stop-shop for larger projects, particularly for those clients who have both warehousing and office needs –

which is most of them,” Armin says. “We can do the whole project. Rather than getting someone who will do your racking or materials handling, and someone else to do the office side – we do it all. Having a single point of contact in this complex world is something our clients really value.” It’s certainly something that Supacat – a leading manufacturer of high-tech mobility defence vehicles – valued when they recently engaged A1. Providing as it does sophisticated military equipment to government buyers around the world, Supacat needed to be sure that, when they moved their office and warehouse to a new location, the transition would be seamless. “Supacat were moving to a new office and warehouse location in Port Melbourne,” Armin says. “Not only

MHD INDUSTRIAL PROPERTY did they need a brand-new office fit-out for their new space, their old space needed to be returned to its original state in an additional make good project. Like their old premises, their new location had an on-site warehouse, so a warehouse fit-out was needed as well. “Because Supacat were moving, we needed to finish the fit-out for their new office and warehouse before relocating their office and beginning the end of lease work. This was a back-to-back project that relied on finishing the fit-out work on time in order to proceed to the next part of the project. Both we and Supacat were happy that a single company was taking on the entire project. That way they had to work with only one company, and we had great control of the timelines for all aspects of the entire build, fit-out, and make-good.” The project was more than just a turnkey full office and warehouse design and construction. In addition to a complete design of the new space, there followed permit-seeking, construction, and more. “Then we had to finalise the occupancy of Supacat’s old space,” Armin adds. “There’s end-to-end projects, but this project went end-toend on one part of the project before being immediately followed by another separate part of the project.” The office and warehouse fit-out part of the project was for a two-storey office and nearly 2000 square metres

of warehouse space. The project included: • Architecturally designed kitchen and reception area; • Creation of new partition walls throughout the building as well as removal of old partitions to create new floorplan; • Refurbishment and recarpeting of separate warehouse office; • Improvements and repairs to building safety; • Installing racking in warehouse; and • Minor repairs and cosmetic changes. After creating the new space for them, A1 then had to make-good the previous property, a job which included repair work, general cleaning, repainting, and other make-good services. “We’re not sure who’s more pleased with the results: we here at A1 Precision Solutions or Supacat,” Armin says. “This project took the right organisation and timelines to get it done for the client, and we’re proud that we accomplished it. Meanwhile, Supacat are happy with their new office which has a clean and modern fit-out.” These are the kinds of projects at which A1 excels. And the A1 team is able to excel because it’s built on a foundation of two experienced, hands-on Directors who’ve brought the best people inside the A1 tent to meet any and every challenge. Directors Andrew Becic and Darko

Balaban started A1 Precision Solutions more than 20 years ago as pallet racking installers. Darko, a qualified carpenter, and Andrew – who holds a Masters in International Relations – combined unique talents from the outset in starting a business in the industrial sector. “Operating from Darko’s farm shed originally, they gained momentum and soon moved to a warehouse with offices,” Armin says. “In 2015 they were offered a Colby distributorship and have been the owners of Colby Dandenong since then – in addition to the A1 brand. So Darko and Andrew really built this business from the ground up. They started in pallet racking but have grown the team continuously since then to include a diverse range of talents – and by extension comprehensive service offering – as possible. “They know that two people can’t do it all – so they’ve found the best people and aren’t afraid to give credit where credit is due. “Another thing we’re big on is open communication and accountability with clients. If there’s a delay, we talk to the client; if we’re unsure of anything, we’ll call to verify.” But while open communication about objectives is crucial, the key A1 advantage is the fact that clients can safely leave the project in A1’s hands and rely on them to get the job done: a one-stop-shop for on-time, on-budget, on-brief project delivery. ■

A1 is a boon for large projects as they bring so many capabilities under one roof. Image: A1 Precision

MHD FEBRUARY 2024 | 39

MHD MATERIALS HANDLING

LIFTING INNOVATION MHD catches up with Combilift Managing Director Martin McVicar, on the occasion of Combilift’s 25th anniversary celebrations, to learn more about the Combilift culture, its dedication to innovation – and why Australians love the Irish-grown material handling manufacturer.

remember my first trip to Australia for Combilift,” Combilift Managing Director Martin McVicar fondly recalls. “I had been in the US, and flew from Cincinnati to Chicago, then Chicago to Los Angeles, from Los Angeles to Auckland and then – the following morning, unshaven – from Auckland to Brisbane to demonstrate a Combilift C4000 truck, the world’s first engine-powered multidirectional forklift – to a tube manufacturer. Immediately after the demonstration, the manufacturer placed an order.” For Martin, this story was the first of many over 25 years that showed the eagerness and receptivity of the Australian market to innovative new products. “That’s because Australian businesses are highly focussed on

Martin McVicar, Managing Director, Combilift. Image: Combilift.

40 | MHD FEBRUARY 2024

improving efficiency. When it came to that demonstration to the tubing company, they could see straight away how it would help them handle tubing of about six metres a lot more efficiently and safely. To them, it was a no-brainer.” But the story is also emblematic of the tireless work Martin and the Combilift team have put in since the company’s inception. “At no stage in the 25 years since we started Combilift have I entertained any doubts.” Martin recalls attending a Leadership for Growth program at Stanford University for three weeks early in his Combilift tenure. “One of my big takeaways from that trip to the US is that people and companies

there aren’t afraid to think big,” Martin says. “One limitation I often feel with Irish companies is that we don’t always preach how good our businesses are; we don’t talk-up our achievements enough. And, of course, if you don’t preach enough about how good our businesses are – how can you expect to get larger? Since then my mindset for Combilift has long been to be thinking, ‘How could we get this business to grow to a billiondollar company?’ “Prior to that experience, I had been thinking, ‘If we grow 10 per cent per year, we’ll eventually get there’. But I remember during that course I had to chart out my vision on spreadsheets, and I realised that if we achieved 15 per cent growth per year, we would double business every five years. And that was just a simpler and more inspiring message for our people – wherever they were in the business – to double every five years.” That growth has been driven by a steadfast commitment to innovation, with Combilift investing seven per cent of its revenue into continuous research and development. “Generally speaking, we launch two or three products per year,” Martin says, with five launched this year to coincide with the company’s 25th anniversary celebrations. The Australian appetite for innovation – and Combilift’s eagerness to feed that appetite – has made Australia Combilift’s fifth largest market, behind the US, UK, Germany, and France. One of the reasons Martin says Combilift products are popular in Australia is that each forklift is designed to address a specific market need and is individually customised to every order. “For example, the Combilift

MHD MATERIALS HANDLING

Combilift invests 7 per cent of its annual revenue into continuous research and development. Image: Combilift.

pedestrian range is the result of an original order from Australia from Bunnings – we custom-built the Combilift Walkie Reach for them,” he adds. “Today, there are five trucks in that range. In fact, many of our trucks have been inspired to suit Australian customers and every truck we build has been made to order. Our focus has always been on solving customer needs.” One of the trucks launched to celebrate Combilift’s 25-year anniversary – the Combi-CB70E – also took on feedback from Australian plasterboard company, CSR. The counterbalance, multidirectional forklift is designed to manage long loads but is both compact and electric. It has a patented swivel seat that enables the driver to turn left or right to reduce strain when reversing. As the Australian economy trends greener, Combilift is well-placed to supply the green forklifts of

the future. “Over 70 per cent of the vehicles we’re currently making are electric and I’d say about 98 per cent of our R&D has gone into electric powered equipment,” explains Martin. “That’s been our focus for the five years, as well as how to measure the efficiency of those trucks. As a company, we’re inherently focussed on sustainable solutions. And by that I mean, we’re focused on making vehicles that are more environmentally friendly to use, as well as vehicles that enable our customers to make their warehouse utilisation more environmentally friendly.” Martin reiterates Combilift’s three pillars, which are: improving safety, maximising storage and increasing efficiency. The company has long had a warehouse design service that they provide to customers free of charge – showing customers exactly how they can unlock every inch of storage space with a warehouse layout.

However, circling back to the electric drive of the company, Martin also mentions that while Combilift uses both lithium and lead-acid batteries, lead-acid is sometimes better from an environmental point of view because it is more widely recyclable than lithium. In fact, according to the CSIRO, only 10 per cent of Australia’s lithium-ion battery waste was recycled in 2021, compared with 99 per cent of lead acid battery waste. To summarise, Martin believes that the future is green, in more ways than one with Combilift. “We’re going to continue to grow our business organically with a key focus on R&D and building products that adhere to our three pillars: improving safety, maximising storage and increasing efficiency. We look forward to another 25 years of providing the Australian market with sustainable solutions that address their specific materials handling needs.” ■ MHD FEBRUARY 2024 | 41

MHD WAREHOUSING

NEW STANDARD FOR WAREHOUSE RACKING Dr Murray Clarke, Director Structural Engineering, Dematic, explains to MHD how the AS 4084 Standard for selective racking in Australia has been updated for the first time since 2012, and why this is important for warehouse compliance.

afety in warehouse environments is of the utmost importance. Each year in Australia, warehouse employees are injured as a result of accidents involving forklifts and warehouse racking. With steel storage racking systems forming the backbone of warehouse operations, it’s essential to ensure racking safety, quality, and structural integrity over the long term. Following recent developments globally and calls from local industry, the racking Standard in Australia has undergone a significant update, with revisions aimed at enhancing structural design, safety measures and operational procedures.

EVOLUTION OF THE STANDARD: THE NEW VS. THE OLD The Standard for selective racking in Australia has recently been updated, with the previous AS 4084:2012 being superseded by: • AS 4084.1:2023 Steel storage racking. Part 1: Design • AS 4084.2:2023 Steel storage racking. Part 2: Operation and maintenance The subdivision of the Standard reflects a more comprehensive approach, addressing both design and operational aspects. Expanded and improved guidance is provided to end users and those carrying out inspections of racking systems, particularly in relation to damage assessment and methods of repair.

WHY THE CHANGE? This change reflects global advances in the industry, since the last update in 44 | MHD FEBRUARY 2024

Dematic’s advanced software and extensive experience ensures that every ColbyRACK system complies with the Australian standard for racking. Image: Dematic. 2012, where developments in seismic design, testing methods, and structural analysis have set new benchmarks. This is because the field of storage racking has been the subject of extensive research and development, notably in Europe, North America, and Australia. With the European and North American Standards already adopting these advancements, Australia recognised it was time to align itself with global best practices. The recent integration of seismic design considerations into the new Standard follows similar developments in European industry. Previously, it was not standard industry practice to design racking for seismic loads. Consequently, little guidance on seismic design was provided in the previous Australian Standard, and it was not usually requested nor enforced by

building certifiers. On the occasions when seismic design was carried out, the detailed calculations were largely at the discretion of the racking supplier rather than an industry Standard. Approximately five years ago, seismic design of racking (as well as other nonstructural building elements) started to receive increased focus from building certifiers. Consequently, the mandatory requirements for seismic design of racking have been included and clarified in the new Standard to remove any ambiguity around the need for seismic design and the relevant design inputs. This ensures, as far as possible, that all racking suppliers in Australia are operating on a level playing field.

THE MAJOR CHANGES At a high level, the changes in the

MHD WAREHOUSING Standard cover: Modification of existing racking systems: While the new Standard does not apply retrospectively to existing racking installations, if those systems are reconfigured, modified or extended then they should be upgraded to the current Standard. Clarification of seismic design: Previously, designing racking systems with seismic considerations wasn’t common in Australia. The new Standard, however, mandates the seismic design of selective racks, ensuring all racking systems can withstand earthquake-induced forces, aligning with global best practice. The updated Standard provides clear-cut inputs for seismic design, ensuring consistent adherence across suppliers. Operational and maintenance focus: The inclusion of operation and maintenance as a separate part to the Standard addresses the industry’s requests, specifically supporting and guiding damage assessment and repair methodologies. Testing methods: Enhanced methods for testing racking components, ensuring they provide reliable data for safe design of racking. Structural analysis: Advanced methods of structural analysis, providing a more accurate and reliable evaluation of racking systems. Direct strength method: Introduction of the direct strength method for designing perforated cold-formed steel racking uprights, aligning with Australian and North American best practices for cold-formed steel design. Splicing: Splices in upright frames should be avoided.

of expertise in seismic design. This wealth of experience not only reflects Dematic’s dedication to safety, but also enables its ability to move quickly in response to industry requirements.

DEMATIC MOVES QUICKLY TO MEET INDUSTRY NEEDS FOR ITS COLBY PRODUCTS

Dematic’s commitment to safety and quality, and its ability to consistently meet the Standard, means that its Dematic and Colby products are not only compliant but also set the benchmark for what should be expected in the industry. Dematic takes the certification of its racking systems seriously. In-house developed structural software ensures that every Colby racking system that is delivered meets the stringent requirements of the new Standard, providing customers with peace of mind. Dematic’s advanced software and extensive experience ensures that

While seismic design has only recently found its way into the Australian Standard, this is old news for the Colby pallet rack range, engineered and manufactured by Dematic in Australia. With a history that traces back to the 1990s, Colby rack has been designed for seismic loads for many years – particularly for clients in New Zealand, where seismic considerations are of heightened importance. As part of Dematic’s commitment to quality design, we collaborate with New Zealand engineers who have a high level

HOW DOES THE NEW STANDARD IMPACT RACK DESIGN? The new Standard brings changes that will influence the design of new racking systems and upgrades to existing systems. While selective pallet racking is the primary focus of the updated Standard, Dematic employs a consistent approach to structural safety and applies seismic design principles to all types of Colby rack including drive-in, high bay, satellite and Multishuttle/mini-load systems. A detailed Dematic project on the seismic behaviour of drive-in racks from 2012 to 2015 jointly with the University of Sydney produced detailed analysis that supports Dematic’s approach and preparedness for the new Standard. Dematic has also carried out extensive structural testing at the component level to provide the required data to support our Colby racking designs. These tests notably include cantilever tests on welded beam end connectors to simulate the cyclic load coming from earthquakes. Additionally, testing has been undertaken on base plates under uplift loading conditions that arise in seismic analysis.

COLBYRACK: A TESTAMENT TO DEMATIC’S UNWAVERING COMMITMENT

every Colby rack system complies with the new Australian racking Standard. Dematic’s customer documentation includes detailed calculations around seismic design. There are many parameters that go into the calculation, not just the hazard factor and soil type, but also the importance level of the structure, the design life, the rigid mass factor, the ductility factor, and more. The rigid mass factor, previously unspecified in the code and subject to individual interpretation or reference to international Standard, is now clearly defined. The ductility factor, crucial for measuring a structure’s capacity to handle deformation and absorb seismic forces, allows for design beyond a fully elastic response.

MEETING THE NEW STANDARD WITH KEY COLBYRACK FEATURES Colby beam connectors, designed for both seismic and non-seismic conditions, stand out due to their length at 280mm with four hooks and a thickness of 4mm in high strength steel. Their robust design can usually withstand seismic forces without the need for extra cable or vertical bracing which is common in other designs. Colby rack’s seismic design strategy prioritises minimising additional bracing, only utilising it for structures where it’s essential, such as high bay and drive-in racks – but not for selective racks.

ONGOING SAFETY ADHERENCE Customers need to be vigilant and ensure that their racking solutions comply with the updated Australian racking Standard. In addition to meeting the new Standard by installing properly designed warehouse racking, it’s also essential for every warehouse to install safety signs and conduct yearly audits and safety inspections. The new Standard requires rack load signs to contain additional information, in particular the ‘tolerance grade’ of the racking system and the name of the firm responsible for the structural design. ■ Dr Murray Clarke, Director Structural Engineering, Dematic MHD FEBRUARY 2024 | 45

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The Australian Bulk Handling Expo is designed for businesses who are bulk commodity producers and require the use of equipment for the movement of bulk goods, either domestically or internationally. The exhibition will feature suppliers showcasing innovative technology, equipment or services to bulk commodity manufacturers and producers.

IN CONJUNCTION WITH

AUSTRALIAN BULK HANDLING EXPO

MHD MATERIALS HANDLING

LITHIUM E-TRUCKS’ 3-PIVOT XC MODEL Embracing the future of material handling with Lithium E-Trucks, the 3-Pivot XC Model stands as a testament to innovation, efficiency, and sustainability. This cutting-edge forklift, developed collaboratively by Hangcha and CATL, is set to redefine the standards of the industry.

he landscape of material handling is witnessing a monumental shift with the introduction of Lithium E-Trucks, particularly the 3-Pivot XC Model. This marvel of engineering is not just a machine; it’s a symbol of the industry’s evolution towards smarter, more efficient, and eco-friendlier practices.

INTRODUCING THE 3-PIVOT XC MODEL At the heart of this revolution lies the 3-Pivot XC Model, a beacon of precision and flexibility. Its tri-wheel architecture endows it with unparalleled agility, allowing effortless navigation through the most constrained spaces. This design marks a significant leap in environments where space optimization is crucial.

DIVERSE MODELS AND CAPACITIES

XC Model boasts an ergonomic design that minimizes fatigue and enhances productivity. Its intuitive controls cater to operators at all skill levels, ensuring a smooth learning curve and consistent operational efficiency.

UNCOMPROMISED SAFETY STANDARDS Safety is paramount in material handling. The XC Series addresses this with advanced safety features, ensuring the well-being of operators and the integrity of the cargo. Lithium power contributes to reliable performance and minimizes safety concerns.

ENVIRONMENTAL AND ECONOMIC ADVANTAGES The environmental and economic benefits of Lithium E-Trucks are noteworthy. Zero emissions mean a significant reduction in air pollution and carbon footprint, aligning with global

environmental goals. Economically, the lithium-powered XC Model demands less maintenance, translating into cost savings and reduced operational disruptions.

CONCLUSION: EMBRACING A SUSTAINABLE FUTURE The 3-Pivot XC Model, propelled by its lithium technology and innovative design, is more than just a forklift—it’s a glimpse into the future of material handling. Lithium E-Trucks are setting new benchmarks in efficiency, environmental responsibility, and operational excellence. This isn’t just a transition; it’s a transformation towards a more sustainable, efficient, and intelligent material handling paradigm. Embracing this technology is not just a choice but a strategic move towards enhancing productivity and sustainability in the material handling sector. ■

The XC Series is tailored to meet diverse industrial needs with models ranging from 1.3 to 2.0 tons. This versatility ensures that there’s an XC Model for every material handling challenge, be it in a bustling warehouse or a rigorous industrial setting.

ELEVATED PERFORMANCE METRICS The series excels in two critical performance aspects: lifting and driving speed. Powered by robust Lithium batteries, the XC Model significantly reduces material handling time and operational downtime, contributing to heightened overall productivity.

ERGONOMICS AND EASE OF OPERATION Acknowledging the importance of operator comfort and safety, the 3-Pivot

The 3-Pivot XC Model marks a step towards greater sustainability. Image: Hangcha Forklifts.

MHD FEBRUARY 2024 | 47

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SAP LEADING SUPPLY CHAIN INTO THE FUTURE Darcy MacClaren, Global Head of Digital Supply Chain at SAP, sits down with MHD to speak about the enterprise software application company, its harnessing of artificial intelligence, sustainability practices, diversifying staff, and the future of the industry she’s been working in for more than three decades.

arcy MacClaren as Global Head of Digital Supply Chain at enterprise software application company, SAP, has spent 30 years growing, differentiating, and improving businesses through technology transformation with a focus on supply chain. Over the past decade at SAP, she has been deeply involved in leveraging technology to transform businesses. She has developed innovative strategies to enhance customer business operations while she’s been in leadership roles at SAP, including Senior Vice President of Digital Supply Chain and Industry 4.0 for SAP North America.

EMBRACING AND USING TECH RESPONSIBLY The supply chain and its technology has drastically changed since Darcy joined SAP in 2013. “Supply chain practitioners realise they must embrace technologies in order to do their job,” explains Darcy. “With all these frequent and severe disruptions, we need technology to act as a buffer; to provide the connections that guide businesses on what actions to take so they are resilient instead of reactive at every disruption.” She identifies three key initiatives that SAP practises: connected, ensuring every business process within its supply chain and across its business is connected; contextual – linking real-time operational and business data together throughout the work process; and collaborative – creating digital connections with all

Darcy MacClaren, Global Head of Digital Supply Chain, SAP. Image: SAP.

its trading partners. “Our solutions are built on the HANA platform, which was a game changer for building the integrated business planning product,” adds Darcy. “We also incorporated the concept of synchronised planning into it. This is the ability to go from strategic operations all the way down to execution in one holistic solution.” Back in 2015, SAP formed AI governance internally and externally. It ensured it would be responsible, reliable, and relevant. Darcy reveals this is embedded throughout the supply chain and part of SAP’s solutions. “By 2025,” notes Darcy. “Based on cluster adoption, and the size and scale of SAP and the number of customers we have, we forecast that we’ll be the largest AI solution provider in the world.

“When we use the term ‘reliable’ with regards to AI, we mean that we understand our customers’ data. When we say ‘relevant’, our 25,000 customers trust us with their data, and allow us to use their business processes so that we can learn with our huge ecosystem and enhance our algorithms. “When you combine your ERP and embedded supply chain data, and you include AI – the returns are a big boost to your bottom line. With businesses’ permission, we can keep training our learning models.”

PRACTISING SUSTAINABILITY FOR OPTIMAL OUTCOMES Sustainability is extremely important for SAP and is part of the company’s core culture. It expects its employees to report, record, and act. “We truly believe we put technology MHD FEBRUARY 2024 | 49

MHD SUPPLY CHAIN in place to ‘help the world run better’,” explains Darcy. “And it’s more than just a tagline. The future of supply chain is open, collaborative, and connected through sustainable ecosystems. Built to create positive outcomes that are beneficial for the planet, it’s people, as much as it is for profit.” SAP tracks and collects information on a business’s sustainability practices. Acting responsibly isn’t related to being a good corporate citizen or because it’s what’s right, but because it’s now statutory. “We’re keeping up with these regulations and putting those into and creating products such as the green ledger, to help our customers track their carbon emissions,” says Darcy. “You’ll see different statistics from 60 to 72 per cent of the carbon footprint being within the supply chain. The onus is on supply chain practitioners. We’re recording it, we’re reporting it, so you can not only see it, but take action to improve it.”

COLLABORATING AND RISK-PROOFING The COVID-19 pandemic cast a spotlight on supply chain and showed how a major disruption could put immense pressure on an industry and force it to react swiftly. Darcy points out that this global event along with the following Suez Canal blockage, extreme weather events and wars, have made it necessary for businesses to de-risk their supply chains. “First and foremost, they’re seeing how supply chain is becoming core and central to their operations, and that they need to risk-proof it,” notes Darcy. “This is why breaking down silos and having a holistic outlook and approach are essential. Collaboration is key. Rival businesses can even collaborate for the better of industry. “SAP knows building networks, making it easy for people to connect with their logistics service providers, and adopting technologies such as cloud services are integral.”

HIRING AND RETAINING DIVERSE STAFF Darcy is a trailblazer in a maledominated industry. Over the past 50 | MHD FEBRUARY 2024

three decades, she’s achieved many significant milestones, but despite this, she’s shocked the industry has

When she undertook and completed an MBA, she fell in love with operations, research-based work, and algorithms.

only progressed a little in terms of diversifying its workforce. She says there are several reasons for this lack in progression. One of them is no real recognition of space for women in the field. “Firstly, there haven’t been enough women entering the supply chain workforce,” explains Darcy. “Secondly, we usually lose female employees when they reach the middle stage of their careers. This is why we need to educate businesses on the importance of diversity. “I formed Empowering Women in Supply Chain (EWCS). It consists of SAP customers and partners. It’s all about addressing the talent shortage and working together to get women in it. EWCS helped me improve the overall diversity at this organisation. It started in North America and is now reaching out globally. “We’re doing our best to figure out what will help us retain female workers. We want to keep them in middle and senior positions – not just junior positions. It’s a tough problem we’ve yet to solve.”

“I enjoy helping businesses delight their customers,” she explains. “Bringing a product to the right customer at the right time in a sustainable way is thrilling. I find it all fun and interesting yet challenging.” As for the future of supply chain, Darcy says the massive influx of technology will continue while labour shortages will remain a constant and pressing issue. “Repetitive jobs in the supply chain will be automated,” she adds. “New roles will be made for workers where they’ll need to possess a specialised knowledge to do them. The role of a supply chain practitioner is going to considerably change. The technology is ready. Now it’s all about learning how to adopt it. “We’re witnessing a mass exodus of experienced workers, but the next generation is tech savvy. Whatever they lack in experience, they make up for with their abilities to use technology in new ways. AI and sustainability will be built into this new system. “You’ll be able to ask this technology a question like, ‘why is my profit margin low in my west region’, and it will provide an explanation, and suggest what you can do to fix this problem. This is where a business’s supply chain should be in the next five or more years.” ■

AUTOMATING THE SUPPLY CHAIN’S FUTURE Darcy started her career at Hewlett Packard as soon as she finished her university studies. It was there she discovered her passion for manufacturing and supply chain.

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ARGON & CO TURBOCHARGE PROCUREMENT MHD spoke to Argon & Co’s Christopher Gardner and Caliba Group’s Daniel Williams about the companies’ partnership, and what they’re doing to enhance their procurement service offering for their clients across the APAC region.

ith Argon & Co and procurement consultancy Caliba Group joining forces in late 2023, the global management company specialising in operations strategy and transformation is now able to provide its clients with a further enhanced Procurement service offering. Caliba Group has a deep knowledge across a variety of industries including healthcare, heavy industry, transport and logistics, and food and beverage. Its team of 25 practitioners and professionals with specialist knowledge and skills is helping to bolster Argon & Co’s existing procurement offering as well as enhancing its industry scope within the APAC region. These employees located in Melbourne, Brisbane, Sydney, Adelaide, Japan and France have backgrounds in data analytics, procurement, project management, and more.

PARTNERING TO ENHANCE PROCUREMENT SERVICE OFFERINGS By having great insight into its three main pillars of healthcare, heavy industry, and transport and logistics, Caliba Group is able to undertake mammoth developments such as the Brisbane 2032 Olympic Games. The Brisbane-based business is dealing with the largest infrastructure projects Australia has seen in the last 20-odd years. “Most of the work we do is around strategic sourcing, cost reduction, and risk assessments and capability building within organisations,” 52 | MHD FEBRUARY 2024

Chris Gardner, Managing Principal – Procurement, Argon & Co. Image: Argon & Co.

says Daniel Williams, Partner at Caliba Group. “We’re a pure play procurement organisation.” While Argon & Co has mainly been supply-chain focused, it will now strengthen its procurement offering as it integrates the Caliba team into its own throughout 2024. “Risk and resilience are what we’re building on,” explains Chris Gardner, Managing Principal – Procurement at Argon & Co. “The Caliba team will support the acceleration as we move into a strong position with our sustainability offering and procurement.” Daniel adds that Caliba Group can deliver a larger suite of services to and solve problems for its clients because it’s now part of Argon & Co. “We’re not just looking at our clients’ internal operational changes or working with some of their suppliers and operational changes, we can focus on full procurement cost reductions,” notes Daniel. “We do the full lifecycle of working with internal and external suppliers.” Argon & Co has always prided

Daniel Williams, Partner, Caliba Group. Image: Argon & Co.

itself on end-to-end value chain. It’s working collaboratively with Caliba Group across several similar industries and with similar clients. “Our clients will get real value from an end-to-end perspective.”

COVERING THE APAC REGION The two consultancies both have clients in the healthcare and FMCG industries with their teams integrating horizontally and working closely together to service them. While Caliba hasn’t entered the New Zealand market yet, it’s focused on the APAC region where it has operations in Singapore, Philippines and Australia, which it’s trying to expand and support. “This works well because Argon & Co also has offices in Singapore and Hong Kong,” notes Daniel. “It’s also great because we can base our staff there instead of making them do fly-ins and fly-outs. All of this will benefit our clients in Asia. We can use Argon & Co’s presence in New Zealand as a launchpad for our own operations.”

MHD SUPPLY CHAIN

Caliba Group joined Argon & Co in November 2023. Image: Argon & Co.

At its Auckland office, Argon & Co has used some of its procurement capabilities there where Chris Ford is now Partner. “By working closely with Caliba, we now have the necessary horsepower to support growth in that region,” adds Chris. “We can also do this in our other major hubs around Western Australia and Melbourne as we continue to grow as a business, particularly in APAC, with the formation of our new Hong Kong office and our existing Singapore office. “From a global perspective, we have a centre of excellence and a real depth of subject matter expertise within this region. We’re now the biggest dedicated procurement organisation not only in the APAC region but worldwide.” Caliba Group is one of the largest independent procurement organisations in Australia and regularly wins tenders against its competitors.

CUTTING COSTS AND INCREASING SAVINGS In the procurement space over the past 18 months, Caliba has been helping suppliers cut their costs and save money. Sometimes the team’s running tenders and managing supplier negotiations or telling their clients to choose one product instead of multiple. “Some organisations are siloed,” says Daniel. “We analyse all of their spending and can outsource some of their work. We also help the two-tier

suppliers. They might have a large factory or heavy industry base, and they’re working with several suppliers. “And we’ve just done it again, with a big packaging supplier and also logistics – we helped a tier two who didn’t have the buying power. We introduced them to some of the contracts, and they were able to share the savings around. We have to keep going the extra mile as more and more savings are needed.” Argon & Co has done a lot of de-risking work since 2020. Chris says risk doesn’t necessarily appear on the bottom line in the same way that savings does in the first instance. He adds: “coupling, cost reduction, value creation are key messages for our clients, particularly during unsettling times.” As procurement professionals, Caliba Group can build contracts that are flexible for both parties. “In this cost-pressure environment, suppliers want security,” explains Daniel. “That’s where you need to engage with people properly.”

INTEGRATING FOR TEAM SUCCESS Over the next 24 months onwards, Argon & Co will roll out its sustainability offerings with Caliba Group. “We have a strong ESG service offering globally,” notes Christopher. “We’re going to cement this in the APAC region.” Collaborative integration will happen over the next 12 months

between Argon & Co and Caliba Group. “Colleagues familiarising themselves with one another will be important. Building capabilities and working with key clients over the next six months. Bringing in that identity and culture to enhance our business and ensure we excel.” “We have some amazing data analysts who can quickly crunch numbers and benchmark,” says Daniel. “We have some great analytical tools that we’re bringing to Argon. Our practitioners know procurement and project management well.” “I think the business that exists here in Brisbane is complementary to the existing culture within Argon, which is rare to find,” explains Chris. “And I think that’s the factor Daniel’s pointed out about this sort of horizontal integration. They’re very client focused. It’s exciting that we’re taking on 25 exceptional individuals into the business. And that’s not only going to benefit our clients but make coming into work a lot more fun. “The next few months will be a lot of learning, collaborating, sharing of information – we don’t want to be siloed. Argon has about 10 staff already in Brisbane, so they’ll be joining us in our office. Working with clients and identifying what the opportunities are. Pursuing the new industries that Caliba can bring, especially in the healthcare, education and heavy industry spaces. Brisbane 2032 will be an enormous pillar within the organisation. We have to plan and scope it correctly.” ■ MHD FEBRUARY 2024 | 53

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MORE THAN A GARDEN VARIETY VEHICLE Royal Botanical Gardens to benefit from new Taylor Dunn electricity utility vehicle.

Royal Botanic Gardens Melbourne’s new Taylor Dunn Battery Electric Utility Vehicle in action. Image: TMHA.

he stunning Royal Botanic Gardens Melbourne has for decades been one of the city’s most popular attractions for locals and tourists alike, and the appeal of the city’s most popular gardens is set to grow further with the addition of a new Taylor Dunn Battery Electric Utility Vehicle to support its faithful volunteers. Royal Botanic Gardens Melbourne has recently enlisted Toyota Material Handling Australia (TMHA) to help purchase a new Taylor Dunn Battery Electric utility vehicle, which will be used by the Friends of the Royal Botanic Gardens Melbourne to provide an important service to garden-goers and amateur botanists. The Taylor Dunn utility vehicle as

standard is a two-seat open-cab utility vehicle with a versatile rear load tray which can be used to carry loads or converted to help support a wide range of applications. Not only have the Royal Botanic Gardens Melbourne had their Taylor Dunn utility vehicle modified locally and covered in a unique livery, it has also been modified with a custom enclosed cab to protect occupants from the weather, and a bespoke canopy in the rear. The Taylor Dunn volunteer pod serves as an information centre on wheels, able to be deployed anywhere on the Garden’s grounds to display maps, interesting plants and information for visitors, including events happening at the Garden and where to find amenities

and seasonal flora. Royal Botanic Gardens Melbourne Chief Executive David Harland says the new volunteer pod would help improve the experience for volunteers and visitors alike. “We are thrilled to launch this new volunteer pod which, combined with the expertise of our friendly volunteers, will enhance the visitor experience at the Gardens and bring the community together around our stories, landscapes and history,” David says. The purchase and canopy fitment were facilitated by TMHA area sales manager Grant Owen, who says the new utility vehicle was perfectly fit for purpose to help the gardens’ volunteers interact with visitors. “They used to have an old caravan MHD FEBRUARY 2024 | 55

MHD MATERIALS HANDLING which they’d tow around and put the caravan on the spots where they’d do the activation, and they’d sit there with their chair and tables and talk to visitors,” says Grant. “Whereas with this machine, two people will be able to jump in, drive to where it is, open the doors and there’s little storage compartments for their tables and chairs – it’s really nicely customised for what they want. “As far as a tool goes, it’s amazing – it’s a big upgrade on what they had previously.” The Taylor Dunn Battery Electric Utility Vehicle also provides a low environmental impact for Royal Botanic Gardens Victoria, being powered by a 36-volt electric drivetrain which produces no tailpipe emissions and allows for quiet, convenient transport all around the gardens. The lightweight aluminium canopy features a pair of barn doors on each side, divided down the middle to provide left- or right-side opening displays to provide garden-goers with all the information they need about current activities and events. Friends of the Royal Botanic Gardens Melbourne President Lynsey Poore was thrilled by the new Taylor Dunn from TMHA, with the organisation helping to provide funding for the purchase. “The Friends of Royal Botanic

The Taylor Dunn Battery Electric Utility Vehicle has a low environmental impact – being powered by a 36-volt electric drivetrain which produces no tailpipe emissions. Image: TMHA. Gardens Melbourne were delighted to provide funding to support this new volunteer pod, which the Garden Ambassadors will run to inform our garden visitors of what is on in the Gardens, the special plants to visit at each season plus some displays of interesting plants for visitors to admire and seek out in our world class gardens,” she says. The Taylor Dunn offers a range of approximately 65km, can carry a load of more than 900kg, is capable of towing more than 2000kg and is suitable for both indoor and outdoor use. With gardens in inner Melbourne and

the outer south-east in Cranbourne, Royal Botanic Gardens Victoria plays a crucial role in the conservation of plants through a range of measures including biodiversity research, the study of habitats and programs to protect rare and threatened plants. Melbourne Gardens includes the State Botanical Collection housed at the National Herbarium of Victoria, with visitor programs for all ages providing the broader public with education about the importance of plants to life. ■ For more on TMHA, visit www.toyotamaterialhandling.com.au

The lightweight aluminium canopy features a pair of barn doors on each side for displays that give gardengoers all the information they need about current activities and events. Image: TMHA.

56 | MHD FEBRUARY 2024

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megatrans.com.au MEGATRANS is Australia’s largest integrated conference and exhibition dedicated to the logistics industry. MEGATRANS is an interactive expo, reserved for companies offering advanced technology technologies and services, grouped by their contributions to the sustainable supply chain.

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MEGATRANS FOCUSING ON SUSTAINABLE SUPPLY CHAIN This September, Australia’s largest logistics event, MEGATRANS, is returning to Melbourne, bringing together industry experts to explore the many ways the supply chain can be made more robust and sustainable.

n a rapidly evolving logistics and supply chain world, MEGATRANS is rebranding itself to reflect the industry’s shift towards sustainability. Held every two years, MEGATRANS has built a formidable reputation as the leading supply chain and logistics event, and will run across 18-19 September 2024. The year 2024 will see the logistics industry make its most significant shift to date towards sustainability, with investments in this space set to

skyrocket, according to MEGATRANS Show Director Lauren Chartres. “The sustainable supply chain is going to be the top focus in the new year,” says Lauren, who oversees MEGATRANS, Australia’s largest logistics event taking place in Melbourne in September 2024. “The past few years have been about securing supply chains at any cost, after they were disrupted by the pandemic. Now that supply chains have settled, and stock levels risen,

The year 2024 will see the logistics industry make its most significant shift to date towards sustainability. Image: Prime Creative Media.

58 | MHD FEBRUARY 2024

major logistics companies are telling us that they are looking to invest in sustainability.” It’s an investment, Lauren says, that is being supported by the federal government’s most recent budget that provided more than $4.5 billion in climate-related spending. This includes $20.9 million over five years to decarbonise transport and infrastructure. The freight transport sector currently contributes to 46 per

MHD MEGATRANS2024 cent of emissions nationally, and transporting people and goods around Australia is predicted to be the country’s largest source of emissions by 2030. Challenges of sustainability, Lauren points out are not just around environmental factors. She notes that the logistics industry is still struggling to secure and diversify its workforce. “We need to start building up the next generation of the logistics industry now,” says Lauren. “And it needs to be reflective of this generation so the industry can mirror its values and set itself up for the future.” The show will similarly offer solutions for companies investing in traceability, as well as cold chain solutions, areas that are so vital for a sustainable supply chain at every level. Lauren and the team at MEGATRANS are supporting the industry’s sustainable priorities by focusing the entire conference and expo on the long-term sustainable supply chain. Integral to MEGATRANS2024 is its standout conference, promising a rich experience for attendees with its diverse range of expert presenters. More than 150 industry leaders will grace the multiple, free-to-attend conference stages on the trade floor, offering insights and perspectives from various supply chain sectors. An exciting addition to the 2024 event is its collaboration with the Australian Bulk Handling Expo (BULK2024). This partnership provides attendees with a dual registration benefit, granting access to both game-changing shows. MEGATRANS will play host to the esteemed MHD Supply Chain Solutions Mercury Awards. This prestigious event seeks to

The show will similarly offer solutions for companies investing in traceability, as well as cold chain solutions. Image: Prime Creative Media.

honour businesses and individuals epitomising innovation, excellence, and leadership within the industry. The confluence of the exhibition, the conference, and the awards Gala dinner, scheduled for September 18, creates a synergistic platform. It’s a unique opportunity for logistics and supply chain professionals to converge, network, learn, and celebrate — all under one roof, at one defining moment. Additionally, there will be the

inaugural MHD Sustainable Warehouse Awards. This event will feature the most sustainable warehouses from across Australia and include the announcement of 2024’s MHD Most Sustainable Warehouse in Australia. MEGATRANS is held every two years, and this year it will run over two days – 18 and 19 September 2024 – at the Melbourne Convention and Exhibition Centre. It’s supported by distinguished sponsors, including the Networking Lounge Sponsor, Loscam, and Association Partners, SCLAA, and VTA. To be part of this transformative experience and align your brand with the future of logistics, explore exhibiting opportunities at MEGATRANS2024. ■ Learn more at www.megatrans.com.au MHD FEBRUARY 2024 | 59

MHD SUPPLY CHAIN

ROLAND BOOSTS SUPPLY CHAIN VISIBILITY Roland, a renowned producer of musical instruments, faced extended transit times from its widspread production locations to customers due to disruptions in ocean transport. This challenge, exacerbated since 2020, prompted the adoption of the project44 platform to enhance delivery predictability.

espite operating multiple production facilities worldwide, Roland’s shipments of musical instruments had for a time been plagued by lengthy delivery times and increased uncertainty, a trend that was intensified by the pandemic. To combat these challenges, Roland implemented the project44 platform, driven by a noticeable decline in the reliability of data since that year. The company, famed for its electronic musical instruments and related equipment, annually fills about

four thousand containers for global destinations, with major markets in North America, Europe, and Asia, and primary production in Malaysia, China, and Japan under the Roland Corporation. The need to adapt to supply chain disruptions prompted a significant shift in Roland’s operational approach. With the backing of a new CEO, the company began focusing more intently on ‘supply chain innovation’ across the board, an initiative that includes the newly chosen supply chain

A key feature of the Movement platform, the AI-based Estimated Time of Arrival (ETA), provides more accurate transport schedule predictions. Image: GreenOak / Shutterstock.com

60 | MHD FEBRUARY 2024

platform ‘Movement by project44’. Previously, Roland’s method for tracking shipments involved relying on information from freight forwarders and external web services, like Marine Traffic, coupled with processing downloaded reports internally. However, these methods proved insufficient due to frequent disruptions, especially in ship scheduling, leading to poor visibility at Roland’s headquarters. In response, Roland’s SCM department undertook a detailed

MHD SUPPLY CHAIN

selection process for a new system, involving extensive discussions between the supply chain department at headquarters and the overseas sales and production sites. A spokesperson for Roland elaborates, “Roland and our overseas group companies conducted a comprehensive comparison and evaluation of several freight visibility solutions. We valued project44 over other vendors because it offers not only tracking capabilities but also rich analysis functions and global coverage. That’s why we chose project44.” The decision to go with project44 was based on its robust features, particularly its capability for global, real-time cargo tracking. The implementation of project44 has significantly altered Roland’s working practices. The company, which previously invested considerable time in deciphering supply chain activities, now benefits from a clearer overall picture, enhancing the visibility for recipients regarding shipment locations. This shift has also allowed the supply chain department to focus more on strategic issues. A key feature of the platform, the AI-based Estimated Time of Arrival (ETA), provides more accurate transport

Roland’s decision to go with project44 was based on its robust features, particularly its capability for global, real-time cargo tracking. Image: project44.

schedule predictions. “project44’s AI-based predictive ETAs (estimated time of arrival) allow us to understand more accurate and realistic transportation schedules and share them with our overseas sales offices,” a spokesperson notes. “Additionally, when unexpected incidents occur, the Overview screen in the Movement platform shows a list of impaced shipments, which helps us to quickly understand the situation and share it with related people.” Also, the ‘Port Intel’ function offers insights into real-time port congestion scenarios and potential delay-causing incidents. Roland also utilises the platform to aggregate data, a process that was previously time-consuming due to multiple data sources. The platform’s efficiency not only speeds up internal data sharing but also facilitates quicker communication with external parties. Despite these improvements, there are areas for further enhancement. The ocean lead time analysis function of Movement allows Roland to scrutinise transit times, informing negotiations with freight forwarders and contributing to reduced lead times in the supply chain.

“Movement by project44 provides an ocean lead time analysis tool as part of its ocean visibility functionality, which helps us to analyse the lead time. Leveraging such analysis data, we can now negotiate with freight forwarders more effectively. One of our achievements is that we successfully managed to shorten the lead time by changing the service route. “With project44, we can now track shipments from port to port. In the future, we would like to expand this visibility – for example, start tracking from the early stage of booking and maintain visibility until the user’s door. “Previously, we needed to spend a lot of time and effort to understand what was really happening. But now, project44’s Movement continuously provides us with a holistic view, improving transparency and enabling quicker information sharing with consignees. As a result, we can now reduce inefficient operations and handling of shipment-related inquiries, allowing our supply chain professionals to spend more time on strategic tasks.” ■ MHD FEBRUARY 2024 | 61

MHD SUPPLY CHAIN

AI-POWERED BACK OFFICE AUTOMATION provenio.ai revolutionises the logistics industry with cutting-edge AI, automating monotonous tasks and streamlining data-heavy processes to deliver rapid value and tangible ROI. (L-R) Ben Clannachan, Dan Pace and Simon Lupica. Image: provenio.ai.

n an era where the digital transformation of industries is not just an advantage but a necessity, provenio.ai stands as a vanguard in the domain of supply chain logistics. With a steadfast commitment to liberating human potential, provenio. ai’s mission is clear and ambitious: to eradicate the burden of manual and repetitive tasks that have long plagued the back office of supply chains. The traditional landscape of manual processing in supply chains is fraught with errors, leading to significant financial losses, wasted time, and tarnished reputations. However, provenio.ai’s proprietary domain-curated artificial intelligence and machine learning technology herald a new dawn. By digitising and automating data buried in the reams of paper-based documents and images, provenio.ai deploys secure, accurate, and ethical solutions that empower organisations to enhance their operational efficiency. Provenio.ai’s customised solutions 62 | MHD FEBRUARY 2024

and flagship products, Fraitey and trePO, epitomise provenio. ai’s innovative approach. Fraitey, for instance, is not just a tool but a powerhouse that digitalises and validates complex freight payment audits, ensuring correct rates are applied across the supply chain network in near real-time. trePO automates up to 90 per cent of the end-to-end accounts payable process, using AI to effectively handle complex and cumbersome three-way PO matching and reducing time-toprocess cycles down to a matter of seconds. “Organisations that have a huge amount of spend in freight and logistics services typically don’t actually know what they’re paying for because the process of checking and accurately validating their spend is a laborious task,” says Simon Lupica, Co-Founder of provenio.ai. “From what we’ve studied with customers, they often don’t have the people required to do detailed analysis and

validation – resulting in variations in overcharges ranging from two per cent right up to 19 per cent in some cases. And if they do have an extended back-office workforce, they can’t divert them solely onto that task as their cost to operate would drastically blow-out. Fraitey solves this issue, creating greater control and cost transparency but in an extremely efficient, scalable and sustainable way through the use of AI.” “Throughout the entire lifecycle of the various businesses we’re engaging with, there’s a significant amount of data,” adds Sriram Bhargav Madhav, CTO of provenio.ai. “This data is essentially non-standard—it’s very unstructured and represented in multiple ways. The distinction of our AI lies in its ability to process this domain-specific data, which we’ve enriched with numerous examples and scenarios. The true strength of AI is its capacity to find a method in the madness, which involves correlating these diverse nonstandard data points to simplify the information, thus providing what we refer to as actionable intelligence. This intelligence is something that can enable data-driven decisions to be quickly acted upon. The essence of AI’s power is that, unlike a human, it can analyse these numerous data points and draw inferences swiftly, informing the user what actions to take or avoid in certain scenarios.” Ben Clannachan, Head of Product & Delivery at provenio.ai, adds that provenio.ai allows true automation of supply chain office processes. “We’ve identified some common industry problems and have applied this technology in a practical, consumable format that can address these widespread issues across the

MHD SUPPLY CHAIN industry,” Ben says. “People might become confused when they hear the term ‘AI’, perhaps thinking of the way it’s portrayed in countless movies. But we’ve distilled it down to the basics, mimicking human behaviour — think of these as building blocks, if you will. We apply this principle in the work context within the supply chain industry, solving problems that previous levels of technology could not. There has always been some form of automation with people, systems, and so on. However, due to the non-standard, unstructured data problem that Sriram mentioned, it’s not feasible to automate effectively without the power of AI and the specific types of AI building blocks we utilise. It’s the reading, understanding, analysing, and processing capabilities that set us apart. That’s our niche; that’s what we’ve homed in on in this industry, where there is a prevalent problem and a notable lack of investment and advancement.”

GETTING STARTED Fraitey’s domain-specific AI and machine learning algorithms can be implemented in as little as one month, enabling businesses to witness immediate productivity gains. It tackles the arduous task of extracting data from documents and images, automating over 90 per cent of the end-to-end freight audits and payments process. This efficiency is not at the cost of flexibility; Fraitey seamlessly integrates across various legacy systems, enhancing them without the need for extensive overhauls. The customisation doesn’t end with system integration. Human-AI collaboration is at the heart of provenio.ai’s philosophy. Fraitey is intuitive and customisable, allowing users to manage complex processes effortlessly. It supports data-driven decisions by providing insights and actionable intelligence in near real-time, effectively creating a super-efficient and more productive workforce. “Essentially, we adopt a phased approach, which begins with understanding the customer’s most problematic or substantial volume areas,” says Dan Pace, Co-Founder

of provenio.ai. “More importantly, we identify the most complex components. We aim to address complexity while delivering quick value. By ‘quick value,’ we mean a timeline ranging from four weeks to three months to start delivering value to the customer. Throughout the entire ecosystem, we interface with various core systems of these businesses, which often carry residual technical debt. By overlaying our systems, we enhance existing systems, thus aiding customers to eliminate the need for lengthy and costly system overhauls. Contrary to some other core systems, we can deliver value very quickly, with customers realising savings and a return on investment within the first 12 months.”

BIG RESULTS, FAST One of provenio.ai’s clients, an Australian retail powerhouse, with over 200 stores in Australia and New Zealand, recently faced a daunting challenge: the manual reconciliation and processing of an annual freight spend exceeding $25 million. With a complex array of inbound and outbound logistics to coordinate, the retailer turned to provenio.ai and Fraitey to navigate the intricate maze of freight management. Within a mere six weeks—a blink of an eye in the corporate timeline— Fraitey was implemented as an agile, non-integrated, stand-alone solution. Its mission was to streamline approximately $7 million of the retailer’s inbound freight spend. The system was designed to handle a highly variable array of charges, including forward origin, ocean freight, destination charges, customs clearing, and assorted fees. At the core of Fraitey’s prowess lies provenio.ai’s finely-tuned Natural Language Processing (NLP) and Natural Language Interpretation (NLI) capabilities. These tools are custom-crafted for the supply chain logistics domain, empowering Fraitey to automatically classify, digitise, and contextually extract critical data. The AI performs rapid validation checks against the retailer’s complex, multi-page supplier rate cards with unwavering precision.

One of Fraitey’s most innovative features is its ability to perform automatic GL-mapping for cost allocation - streamlining the financial workflow and processing within existing end-point systems. Moreover, the comprehensive reporting features offer a transparent lens into the freight spend, providing the retailer with actionable insights to further refine their processes and optimise their supply chain network. The results? They speak for themselves. Fraitey identified over 3 per cent variance across the retailer’s top five suppliers, exposing discrepancies that had previously slipped through the cracks of manual processing. Additionally, the retailer now operates at a pace 30 times faster than traditional methods, marking a seismic shift in productivity. Beyond the tangible metrics of time and money saved, the most significant impact of Fraitey’s deployment is perhaps felt in the day-to-day operations. The retailer has reported productivity gains exceeding 75 per cent, which, in turn, has dramatically improved the employee experience. No longer bogged down by the tedium of manual data entry and error checking, the staff can now focus on more strategic, rewarding tasks, fostering a more engaging and dynamic workplace. This case study showcases the transformative potential of AI in streamlining the supply chain, offering a beacon for businesses aiming to achieve similar efficiency and clarity in their operations. As provenio.ai continues to pave the way, the future of supply chain logistics shines brighter, driven by intelligent automation and human ingenuity working in concert. While Fraitey is helping consumers of freight and logistic services better manage their spend, the team also works with 3PL and 4PL providers, such as Linfox. Using their domain curated AI, the team are creating AI-powered solutions that simplify how activity and costs are reconciled, validated and accurately charged for - helping to prevent revenue leakage, improve productivity and ensure improved customer experiences for 3PL and 4PL solution providers. ■ MHD FEBRUARY 2024 | 63

MHD SCLAA

KEY PRIORITIES FOR AUSTRALIAN SUPPLY Sam Martin-Williams, Non-Executive Director and Vice Chair at the Supply Chain and Logistics Association of Australia, talks to MHD about the benefits of becoming a member of the organisation.

t the heart of the Supply Chain and Logistics Association of Australia (SCLAA) is a commitment to connecting professionals and partners to growth opportunities, guided by a strategic purpose that champions collaboration, innovation, and success. As we look toward 2024, the SCLAA stands ready to address critical issues while offering a range of benefits to its members, further solidifying its role as a cornerstone in the evolution of Australian supply chains.

DIGITAL TRANSFORMATION AND TECHNOLOGY INTEGRATION: Aligned with our strategic purpose, the SCLAA provides exclusive Professional Development and Training Resources. Members gain access to cuttingedge insights and training programs, ensuring they stay at the forefront of digital transformation and technology integration within the supply chain industry.

SUSTAINABLE PRACTICES AND ENVIRONMENTAL RESPONSIBILITY: Our commitment to supporting industry advancement extends to mentorship programs. Through the Mentorship Program, members connect with experienced professionals, fostering collaboration and knowledge transfer. In 2024, this benefit becomes a strategic resource, connecting professionals to growth opportunities in sustainable practices.

RESILIENCE AND RISK MANAGEMENT: Joining a state division committee is a unique benefit offered by the SCLAA. 64 | MHD FEBRUARY 2024

Joining a state division committee is a unique benefit offered by the SCLAA. Image: Aun Photographer/Shutterstock.com

Members can make a tangible difference by contributing to committees focused on resilience and risk management. This collaborative effort connects professionals to growth opportunities in shaping the future of resilient supply chains.

SUPPLY CHAIN TALENT DEVELOPMENT: The SCLAA recognises the importance of networking and collaboration. Members gain access to exclusive memberonly events and site visits, providing networking opportunities with likeminded industry professionals. By connecting professionals, this benefit becomes a powerful resource for fostering innovation and success in talent development.

REGULATORY COMPLIANCE AND TRADE CHALLENGES: An integral part of being an SCLAA member is the opportunity to attend the prestigious annual ASCLA Industry Awards. This exclusive benefit connects professionals to growth opportunities by recognising and celebrating outstanding achievements in regulatory compliance, contributing to the elevation of industry standards.

E-COMMERCE INTEGRATION AND LASTMILE OPTIMISATION: The SCLAA empowers members to connect with industry conferences, offering member discounts to local and global events. This benefit facilitates networking with fellow professionals and access to growth opportunities in the rapidly evolving landscape of e-commerce integration and lastmile optimisation. As we navigate the challenges and opportunities of 2024, SCLAA remains dedicated to not only addressing key priorities in Australian supply chains but also providing valuable benefits to its members. By offering exclusive Professional Development and Training Resources, Mentorship Programs, committee involvement, networking opportunities, prestigious awards, and industry conference access, the SCLAA ensures that its members are well-connected to growth opportunities and equipped to lead the industry toward a resilient, sustainable, and innovative future. Together, we build the foundations for success in the ever evolving supply chain landscape. ■

MHD SCLAA

BE PART OF THE FUTURE

The Supply Chain & Logistics Association of Australia combines decades of experience with industry-leading professional development and education programs, networking events, corporate partnerships, and support for its members and partners.

Our strategic purpose is to connect today’s supply chain professionals and partners to tomorrow’s growth opportunities and to support the advancement of our industry by championing collaboration, innovation, and success.

SOCIAL MEDIA FOLLOWING OF 38,000+

STRATEGIC REACH OF 50,000+

Expand your horizons with

Building enduring industry

Via printed and digital media

thousands of professional

relationships with individuals

across our network of

members and industry contacts.

and businesses alike.

practitioners and professionals.

6,500 MEMBERS & INDUSTRY CONTACTS

EXPLORE OUR RANGE OF MEMBERSHIP + NATIONAL PARTNERSHIP OPTIONS We have a range of Membership Options suited for every stage of your career, from Students just starting out, to Corporate Bundles and National Partnership opportunities for organisations wanting to partner with SCLAA and be part of the future of our growing industry.

P 7 SCAN TO JOIN

www.sclaa.com.au

MHD FEBRUARY 2024 | 65

MHD RWTA

STEFAN JENSEN OF SCANTEC WINS AIRAH AWARD Marianne Kintzel, Executive Officer of the RWTA, tells MHD about the 2023 AIRAH Awards and the prestigious James Harrison Medal recipient.

The James Harrison Medal recognises the highest levels of individual achievements in the Australian refrigeration and air conditioning industry. Image: MiniStocker/Shutterstock.com

he winners of the AIRAH Awards 2023 were announced at a glittering gala dinner held on Thursday, November 30 in Sydney and Stefan was awarded the prestigious James Harrison Medal. The James Harrison Medal is the highest honour AIRAH can bestow upon an individual. It recognises the highest levels of individual achievement in the Australian refrigeration and air conditioning industry. More than 250 members of Australia’s HVAC&R community gathered on AIRAH’s night of

66 | MHD FEBRUARY 2024

nights to recognise the outstanding achievements of individuals and companies within the sector. The annual awards gala is one of the many ways AIRAH works to raise the profile of HVAC&R and shine a light on some behind-the-scenes heroes. “The AIRAH Awards provide a platform to highlight the brilliant work our members do across a broad range of categories,” says AIRAH CEO Sami Zheng. “It’s an honour to help celebrate our industry’s leading projects, people and initiatives.” ■

The AIRAH Awards 2023 were held in Sydney. Image: Shutterstock, Nan_Photography.

MHD ASCI

COMPLETE SUPPLY CHAIN PLANNING SOFTWARE IS A MUST Alessio Lolli, Vice President, Global New Client Engagements Wolters Kluwer, speaks to MHD about supply chain planning software and why it’s an essential tool.

ooking for a new sofa, bike, or car parts? How about a Nintendo Switch? Or, simply, eggs? Over the last three years, supply chain issues have plagued every manufacturer, retailer, and industry. Even as supply chain strains start to ease, the most optimistic economists report that there will be another year of shortages barring other unanticipated disruptions. Supply chain planning, and the ability to re-plan, is more important than ever. And while supply chains have always been vulnerable, their biggest threat isn’t just external disruptive forces (those are a given.) It’s the supply chain planning process itself. Fragmented, inaccurate, manual, rigid: these are four things a supply chain planning process should not be, yet it’s the hand many supply chain managers were dealt. So, what indicators point to areas in the supply chain process posing a threat to operations? Here are four signs it’s time to revamp the companies supply chain planning process.

“

Every supply chain decision eventually shows up on the balance sheet. Excess inventory consumes working capital. Rising delivery costs can blow budgets.

”

processes, and systems to create and adjust plans. It’s both common and problematic for sales and operational data to live in one system while demand forecasting is executed in another, and production data is housed in an entirely different region. With an isolated, disjointed process like this, the manual assembly of each plan does nothing to foster an agile or complete response when supply or demand changes. One study by Supply Chain Dive found that 39 per cent of respondents believe manual processes are the root cause behind slow reaction times to change. Another 20 per cent identified disconnected core systems. My take? It’s most likely a combination of both. What’s more, a disconnected supply

A disconnected supply chain plan creates accountability issues. Image: ASCI.

SIGN 1: SUPPLY CHAIN PLANS CREATED IN ISOLATION Each link of the supply chain — demand, supply, production, inventory, finance, sales, and operations — hinges on adjacent plans. Despite the inherent interconnectedness of supply chain plans, many managers find themselves manually cobbling together a patchwork of applications, MHD FEBRUARY 2024 | 67

MHD ASCI chain plan creates accountability issues. If plans are fragmented and isolated, who is responsible for adjusting the plan or communicating changes down the chain? Without clear ownership, it’s easy to see how communication issues can have significant downstream effects.

SIGN 2: DECLINING SERVICE LEVELS, INCREASING COSTS Customer service levels going down month over month could indicate bigger supply chain management problems. Two reasons for declining service levels could be: 1. A disconnected supply chain: A cost-cutting measure in one area that results in a spike in another area is the hallmark of a disconnected supply chain. When one part of the supply chain can’t see the domino effect in other areas, good intentions can lead to costly financial outcomes or operational issues that trickle down to the customer’s experience. It’s difficult to get an accurate picture of what’s happening when data doesn’t efficiently flow through the chain. The result of loose links? Inventory orders that are disconnected from working capital, supply that’s divorced from demand, and supply chain decisions that are made without paying mind to the bottom line. 2. Inaccurate forecasting: Whether inflated or underestimated, incorrect forecasts impact service levels and costs. Let’s say demand is overanticipated. The symptoms of an inflated demand forecast manifest in inventory — specifically, excess inventory and lower inventory turns. Of course, this doesn’t just mean companies are holding onto more stock. It means they are haemorrhaging capital across supply, labour, production, and transportation for every forecast that’s off the mark. If demand is underestimated, companies are faced with supply constraints. This manifests as stockouts and inventory shortages, which prompt the entire supply chain to change course. Production must be expedited, supply must be procured, and production lines must change over to remedy these shortages. Of course, like anything on a short timeline, changes 68 | MHD FEBRUARY 2024

“

Fragmented, inaccurate, manual, rigid: these are four things a supply chain planning process should not be, yet it’s the hand many supply chain managers were dealt.

”

are billed at a premium.

SIGN 3: COMPANIES FACED WITH FINANCIAL DISCONNECTS Every supply chain decision eventually shows up on the balance sheet. Excess inventory consumes working capital. Rising delivery costs can blow budgets. Models by McKinsey show that “a single prolonged production-only shock would wipe out between 30 and 50 per cent of one year’s EBITDA for companies in most industries.” Changes to labour, suppliers, orders, delivery methods, the production line, demand, and procurement can happen instantly. Without a direct link to the financial truth, reactions are made blindly to the long-term or down-chain effects. Difficulty setting cost of goods sold (COGs) targets, predicting revenue, or adjusting budgets to deal with fluctuating delivery costs are clear indications that supply chain plans are disconnected from finance.

SIGN 4: SUDDEN CHANGE CAUSES CHAOS Supply chains are under constant stress. Change comes with the territory. Of course, traditional planning methods enable the

company to anticipate some things — seasonality, weather, customer surges, and economic cycles. But a pandemic? A sudden war? A factory fire? A labour strike? Under these circumstances, rigid, manual systems do nothing to enable a hasty response. Traditional forecasts are one-dimensional and fail to accommodate the swift financeforward, multi-level response required by a sudden change. As Vice President of Supply Chain Services at ARC Advisory Group, Steve Banker wrote in Forbes, “Traditional demand management is based on time-series trend forecasting. Timeseries trend forecasting means taking an inside-out approach, relying on an organisation’s historical, internal data to predict demand. This works OK … until the world changes.” An integrated planning environment is the key to avoiding chaos. Companies can minimise the disarray by being able to adapt plans based on a holistic view of cause and effect when external disarray ensues.

AN INTEGRATED SUPPLY CHAIN PLANNING SYSTEM ISN’T A NICE-TO-HAVE – IT’S A MUST-HAVE Supply chain plans are interdependent, data-heavy, and subject to change. The question isn’t if supply chain planning software is needed. It’s abundantly clear that an integrated supply chain planning process is necessary to improve resilience and responsiveness. Instead, the question is, what should companies look for in software? Here is the answer.

HOW DOES A COMPANY CHOOSE SUPPLY CHAIN PLANNING SOFTWARE? The Ultimate Buyers’ Guide to Supply Chain Planning Software is an eBook that will help companies: • Assess the company’s needs for new or updated supply chain planning software; • Define the company’s software requirements; • Make a business case for a new finance-forward supply chain planning system; and • Identify a list of top vendors to explore ■

MHD PEOPLE ON THE MOVE

PEOPLE ON THE MOVE A monthly wrap up of the latest appointments in the supply chain, materials handling and logistics industry.

SUPPLY CHAIN EXPERT GAINS DUAL ROLES

TMX APPOINTS STRATEGIC ADVISOR

ARGON & CO WELCOMES BACK EX-MANAGING PARTNER

In April 2023, Qing Zhang was appointed a dual role of President at Toyota Tsusho (Australasia) Pty Ltd and Managing Director of TT Logistics (Australasia) Pty Ltd, injecting fresh perspectives and enthusiasm into both positions. His leadership journey spans various continents, showcasing a consistent demonstration of excellence and strategic acumen.

Linda Venables joins TMX after three years with PwC, two of which were spent as the consultancy’s first ever Chief Supply Chain Officer. Prior to moving to Australia, Linda worked in Europe and the UK for 3M, MasterFoods, deployed ERP solutions across Nestlé Europe, before moving into the third-party logistics sector with DHL. In Australia, Linda has held senior roles in supply chain for Woolworths and, as

Frans Verheij returns to Argon & Co ANZ as Partner. Previously, Frans was Managing Partner at the global management consultancy specialising in operations strategy and transformation before it merged with Pollen Consulting. Over the past two years, Frans has enjoyed a quick career break before supporting the business on several key strategic projects.

Chief Logistics Officer for Metcash.

SIDEKICKER PROMOTES NEW GENERAL MANAGER

SWISSLOG APPOINTS HEAD OF DESIGN

Torben Jess has recently been promoted to the role of General Manager for the Industrial team at Sidekicker. Torben will work on continuing to build the Sidekicker sales, account management, and customer success teams.

Swisslog Australia and New Zealand has appointed João Marinho as Head of Design and Engineering. João has more than 25 years of experience in warehouse automation and mechanical engineering, including for companies specialising in fully automated solutions, racking, robotics, light goods, and pallets. João moved to Australia in 2013.

ANDREW ROMANO TAKES THE SUPPLY CHAIN LEAD AT BRIDGESTONE Australia & New Zealand’s most trusted tyre brand, Bridgestone, has engaged former Babcock and Schnieder Electrical supply chain specialist Andrew Romano as Head of Supply Chain. Andrew brings more than 20 years of supply chain experience to the role and will play a key role in the market leading tyre company’s evolution towards a sustainable solutions company.

Do you have career news to share? Email Edward Cranswick at Edward.Cranswick@primecreative.com.au to be featured.

69 | MHD FEBRUARY 2024

MHD PRODUCT SHOWCASE

HUBTEX SECOND GEN FLUX 30

PROJECT44 OCEAN VISIBILITY

HUBTEX’s FluX Electric Multidirectional Counterbalance Forklift Truck has had some significant and innovative updates. The latest generation has load capacities of up to three tonnes. It has a new central driver’s position, which provides a higher-up all-round visibility compared to its predecessor. Additionally, the patented 360° HX steering has been added to the compact three-wheel running gear for the first time, ensuring smooth changes in direction from longitudinal to transverse travel. It handles both pallet and long-load transport in a single vehicle. This hybrid used as a front and sideloader makes the new 3T FluX 30, suitable for a wide range of sectors, from the timber and metalworking industries, through to the building materials trade.

Poor ocean visibility puts a strain on global supply chains, logistics costs, and customer service. At the root of the issue is low-quality data that hinders personnel productivity, streamlined operations, and proactive exception management. Today, more than ever, shippers and 3PLs need global ocean visibility with the data quality, intelligence, ETAs, and proactive exception management that ensures efficient, costeffective, reliable, and sustainable global transportation. Project44’s Ocean Visibility solutions is here to help, with a suite of solutions that uses first-in-class data and analytics to improve personnel productivity, allow for proactive exception management, reduce logistics costs, improve customer service, and empower users for agile transport planning and procurement.

For more information visit www.hubtex.com.au

For more information visit www.project44.com

AUTOSTORE GRID AND VENDING MACHINE

IFM’S TRACK AND TRACE GATE

Global cube storage company AutoStore introduces its latest capability, the Grid and Vending Machine solution, designed to simplify warehousing automation. The ConveyorPort is a workstation in its simplest form, where Bins are dropped on a conveyor and transferred to an opening outside of the Grid. Smart covering and sensors ensure operator safety. The CarouselPort is designed to work with the operator, in harmony with Robots to ensure the next Bin is always ready. The workstation operates with three rotating arms, each holding one Bin tray. The Vending Machine solution includes various Robots and chargers, as well as a dummy display unit, and a grid structure with 60 Bins.

ifm Track and Trace Gate is the complete solution for your automated and transparent logistics in your incoming and outgoing goods processes. By directly transferring all goods flows to the IT level, you can organise the inter-locking of production, inventory, and suppliers more efficiently than ever before.

For more information visit www.autostoresystem.com

70 | MHD FEBRUARY 2024

For more information visit www.ifm.com/au/en

Leading the way. Transforming business. Argon & Co is a global management consultancy that specialises in operations strategy and transformation. With expertise spanning the supply chain, procurement, finance and shared services, we work together with clients to transform their businesses and generate real change. Our people are engaging to work with and trusted by clients to get the job done.

Start your transformation journey today and download our credentials pack:

argonandco.com

MHD SUPPLY CHAIN SOLUTIONS FEBRUARY 2024

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