MHD Mar 2020 by Prime Creative Media

MARCH 2020

MAJOR FULFILMENT VOLUMES Behind the scenes at eStore Logistics

PAIN POINTS

How to solve the five most common distributor challenges

COVER STORY

LUXURY FASHION MEETS ADVANCED AUTOMATION Australiaâ&#x20AC;&#x2122;s first retail 3PL and e-commerce business to adopt AMRs

Automating retail & e-commerce with AMRs

Cohesio Group wins Australia’s first ever 3PL AMR project for retail store and e-commerce fulfilment with Bolloré Logistics Pick. Sort. Manage returns. Replenish. Increases order efficiencies. Save warehouse space. Achieve faster ROI with minimal investment. Upskill operators. Enrich jobs. Invest more in customer service. Work with Cohesio Group to build your future automation strategy. Cohesio Group belongs to the Business Unit Software and is part of the Business Area Logistics Systems belonging to the international technology group Körber: koerber-logistics.com/en E: info@cohesiogroup.com P: AU 1300 66 93 94

cohesiogroup.com/robotics

MHD FROM THE EDITOR

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

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

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

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.tandlnews.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.

THE POWER OF NETWORKING

’ve been fortunate enough to get out to a number of industry events over the past month. It’s been great to meet practitioners in the industry and learn about the latest projects and developments. It made me realise that while it’s not always at the top of everyone’s list, particularly when calendars are already overcrowded, there is no denying the power of networking and industry events. Networking can help improve skills sets, provide insight into the job market, meet potential mentors, partners and clients and generally further your understanding of your sector and profession. Networking is not just about exchanging information. It’s about establishing longterm beneficial relationships with people who share some of the challenges and experiences you do. According to a LinkedIn global survey, 80 per cent of professionals consider networking to be important to career success. In addition, 70 per cent of people surveyed were hired at a company where they had a connection. However, the study revealed that 38 per cent found it hard to stay in touch with their network in-person. The leading cause was because they didn’t have enough time. I want to use this opportunity to encourage you to make the most of the benefits of networking by attending MEGATRANS2020, the largest supply chain, logistics and materials handling exhibition. MEGATRANS2020 will take place on April 1 – 3 in Melbourne and will provide an opportunity to connect with all aspects of this industry under one roof. As well as the latest products, tech and innovation in your sector it will also feature a full programme of speakers and networking opportunities. I look forward to meeting you there.

CELEBRATING 50 YEARS OF MHD This year marks a special moment for MHD Magazine. This publication was founded half a century ago. It is fitting that as we move into the 50th year of the publication, with readership and distribution at its highest-ever level since the title was launched, we will be publishing 11 editions this year. Throughout the coming year we will reflect on what has been a defining period for logistics. We will look at the evolving landscape that logistics operates in and focus on some key milestones that have shaped the industry we know today.

ARTICLES All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format. COPYRIGHT MHD magazine is owned by Prime Creative Media. All material in MHD is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in MHD are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

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

MHD Supply Chain

MHD MARCH 2020 | 3

MARCH 2020

ISSUE #2 VOLUME 50

THIS ISSUE COVER STORY

COVER STORY

16 Luxury logistics

EVENTS 20 Five reasons to attend MEGATRANS2020 22 Meet the speakers 24 MEGATRANS2020 Programme 14 An evening of recognition 30 ALC Forum 2020

MATERIALS HANDLING 36 Charging ahead 44 Future technology today

SUPPLY CHAIN 40 Support you can trust 52 Critical solutions for the supply chain

PROPERTY 34 Former Australia Post DC available in Brisbane 58 Ready to innovate

TECHNOLOGY

MARCH 2020

MAJOR FULFILMENT VOLUMES

Behind the scenes at eStore Logistics

PAIN POINTS

How to solve the five most common distributor challenges

COVER STORY

LUXURY FASHION MEETS ADVANCED AUTOMATION

SAFETY 38 Assessing your workplace risks 46 Ways to remediate the ground

Australia’s first retail 3PL and e-commerce business to adopt AMRs

DEPARTMENTS AND REGULARS 06 News 60 Product showcase 62 Property focus 64 From the SCLAA 66 ALC 68 ASCI 70 The last word

ON THE COVER In an MHD exclusive, we reveal how Bolloré Logistics is improving efficiency and accuracy by introducing a customised automation solution.

27 Meet Australia’s largest e-commerce 3PL 32 Cobots: the next revolution 48 Pain points 54 Eliminating manual data entry in the warehouse

52 MHD MARCH 2020 | 5

MHD NEWS

Jungheinrich donates forklifts to Australia’s largest food charity

ungheinrich Australia has donated over $60,000 in products to the Foodbank charity to help support emergency bushfire relief. The material handling giant delivered two forklift trucks to the charity’s head facility in

Jungheinrich has delivered two forklift trucks to Foodbank’s head facility.

Glendenning, New South Wales. Jungheinrich donated a EFG220 forklift valued at $35,000 and their ETV320 model valued at $28,000. Jungheinrich said in a social media statement they wanted to help Foodbank “channel the generosity of the food and grocery sector, and the general public who are keen to assist with essential supplies to stricken areas”. Foodbank is playing a crucial role in the current bushfire crisis which is devastating communities across Australia by putting a nationwide “Bushfire Emergency Food Relief Appeal”. Mick Brookhouse, General Manager of Jungheinrich Australia said there are several staff members affected by the bushfire crisis and the focus must now be entirely on the recovery”. “In the next couple of weeks, our activities will increase and these

machines will definitely assist us to cope with that,” a spokesperson from Foodbank Australia, Glendenning said. A spokesperson from Jungheinrich said they predict the forklift trucks will last more than 10 years at the Foodbank distribution centre in NSW. “We have provided the trucks initially on a no cost 6-month lease. This includes all maintenance. At the end of the six months we will engage with Foodbank to assess whether their needs for the trucks still exists,” the spokesperson said. “We considered the best way to provide support and donations and supply of goods was considered. However, when we noticed reports that entities such as Foodbank were being inundated with donated goods, we decided that the donation of forklifts would be the most useful way in we could support the efforts.”

Top five jobs in high demand across the logistics market this year

mployees will be chasing multi-skilled candidates across transport, warehousing and supply chain this year according to a new jobs report published by the Hays logistics sector. The report also expects transport allocators, freight forwarders, warehouse managers and supervisors and import and export coordinators to be in high demand from January to June this year. “Employers look for candidates with a strong knowledge of systems and processes and a history of reducing costs, achieving demanding KPIs and diverse experience,” the company said. Hays logistics sector revealed employers want candidates with a 6 | MHD MARCH 2020

Employers want candidates with a wide technical skillset. wide technical skill set who they can utilise to their full potential. To fuel the demand within transport networks across the country, transport allocators

and experienced transport supervisors and managers to lead operations in the busier transport sectors located in Sydney, Melbourne and Brisbane.

Trusted support. Trust Dexion. When you choose Dexion solutions for your business, you get more than just a product. You get Australia’s largest logistics supply network – with over two decades of experience supplying equipment and expertise from more than 20 metro and regional locations. Our vast technical knowledge and best practice experience across thousands of satisfied customers allows us to work alongside you to help your business productivity flourish through smarter warehousing.

Local support you can trust – that’s the Dexion difference.

1800 100 500 dexion.com.au

MHD NEWS

CEVA snaps up final lease in new Melbourne development

EVA Logistics is the last tenant to complete the occupation of the new 310-hectare development in Truganina, Victoria. CEVA Logistics already occupies 238,670 square metres of industrial stock at the estate, including a $80 million warehouse. The company has signed an agreement with Frasers Property to lease a 37,307 sqm bespoke facility for six years. The lease in Truganina will comprise of 35,507 sqm warehouse, 1,800 sqm office (over two levels) and 105 car spaces. Anthony Maugeri, General Manager Southern Region, Frasers Property Industrial said West Park Industrial Estate was developed over 16 years. “It was the first in Victoria to obtain a 6 Star Green Star Design & As Built rating for CEVA’s supersite and subsequently received six stars for CEVA Alliance and CEVA Tech (Nissan). Five stars were also

CEVA’s new facility is due to opean at the end of this year. achieved for CEVA Toyota, Visy Australia and National Tiles/CTI Logistics from the Green Building Council of Australia,” Anthony said. “Several of the largest state-of-theart warehouses in Victoria including leasing/pre-leasing 238,670 sqm of gross building area to CEVA, Visy Australia (42,770 sqm), Mitre 10 (25,157 sqm), CHEP (24,700 sqm) and Goodyear

Australia (24,100 sqm) were built in the estate.” More than 40 industrial facilities have been developed at West Park, located 22km from Melbourne’s CBD. Arlec Australia, National Tiles, CTI Logistics, Australia Post and DB Schenker have facilities at the estate. The newest development of the facility is set to open at the end of this year.

Australia’s most traffic congested city revealed

Sydney has been revealed as Australia’s most congested city.

8 | MHD MARCH 2020

ocation technology specialist TomTom has released the results of a report detailing traffic congestion from 57 countries around the world. Sydney took the top spot in Australia as the most congested city with drivers. Drivers in Sydney spend on average an extra 33 per cent of travel time stuck in traffic, working out to be an additional 10 minutes for every 30-minute trip. Melbourne followed a close second with a congestion level of 30 per cent, followed by Brisbane at 25 per cent, Adelaide and the Gold Coast at 24 per cent congestion. Sydney is the only city in Australia which made it to the top 100 most congested cities, ranked 86th in the world for heaviest traffic. Results show an increase in traffic

congestion in 4 out of the 10 cities measured in Australia, with Hobart having the biggest increase of 2 per cent from the previous year. Average congestion in Sydney and Melbourne are both higher than the global average congestion level of 29 per cent. Sydney and Melbourne are the national hotspots where commuters experienced the same levels of congestion during peak hours. In these capital cities, between 7am-8am and 5pm-6pm are the worst times to be on the roads. On average, Sydneysiders experienced an average of 63 per cent extra travel time during the morning rush, and a 58 per cent extra travel time during the evening rush.

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MHD NEWS

$192.7 million investment in new prime logistics facilities

Since 2017, GPT has completed six logistics developments.

PT Group has announced they’ve made a $192.7 million purchase to expand their name in the logistics sector. The property giant has built its logistics portfolio by adding three acquisitions in Melbourne’s West. GPT has purchased the assets and a 8.9 hectare parcel of land in the Western Melbourne industrial precincts of Derrimut and Truganina. GPT chief executive Bob Johnston

told Brisbane Times that the company has “more than 550,000 square metres of new prime logistics facilities with an estimated end value on completion in excess of $1 billion”. The developments at Derrimut and Truganina are both fully leased and include over 10,000 sqm of warehouse space for the major tenants. The third facility is located at the Sunshine Business Estate in Western Melbourne, which was acquired by GTP in early 2018. Matthew Faddy GPT’s Head of Office & Logistics said the two new assets in Melbourne have the capacity to deliver a 48,000 square metre logistics facility once it’s developed. “These acquisitions have increased GPT’s exposure to a part of Melbourne which has seen very strong levels of tenant demand and is expected to significantly benefit

from major road infrastructure investment,” said Matthew. “We expect strong demand for quality logistics facilities in Western Melbourne to continue with strong population growth and gentrification of traditional industrial precincts such as Port Melbourne and Fishermans Bend.” The facility in Derrimut was completed in 2011 and the Truganina facility in 2014. The acquisition of the 8.9 hectare site in Truganina comes as GPT announced it had fully leased its newly completed 30,100 square metre warehouse facility at 50 Old Wallgrove Road, Eastern Creek in Sydney. Since mid-2017, GPT has completed six logistics developments, which have all been fully leased and have added $240 million to the investment portfolio.

Amazon launches a new service paying everyday Australians to deliver packages

n a system that is vaguely reminiscent of Uber, residents in Sydney and Melbourne can now get paid to deliver packages for Amazon. Only three years on from activating Amazon.com.au, the e-commerce giant has now launched Amazon Flex into the Australian market to expand its delivery network. Amazon flex gives individuals the opportunity to be their own boss and earn extra money in their free time delivering Amazon packages to customers. Amazon Flex participants will join traditional Amazon carriers who deliver over 125 million products 10 | MHD MARCH 2020

available to the Australian market. Interested delivery partners in Sydney and Melbourne with their own vehicle can sign-up, choose delivery blocks that fit their schedule, and deliver packages using the Amazon Flex app. Once the app is downloaded from the IOS or Android app store, a background verification process will need to be completed upon signing up then individuals can accept delivery blocks. Delivery blocks are an estimated four hours, during which delivery partners collect their packages from pick up points in Sydney and Melbourne and deliver them

to customers. Delivery partners will know the estimated duration and minimum payment for each block in advance, and will receive payments weekly by direct deposit. Craig Fuller, Director of Operations at Amazon Australia said the new service will speed up the delivery process for customers. “As customer demand and delivery needs continue to grow in Australia, Amazon Flex gives us the agility to supplement the work we do with our existing carrier partners so we can speed up delivery times and respond to peaks in demand,” Craig said.

MHD FORKIFT SURVEY

HAVE YOUR SAY IN SHAPING THE FUTURE OF THE FORKLIFT INDUSTRY Australian forklift users are being called on to help influence improvements of future developments and success.

he biannual Forklift Survey is now live and seeking respondents who have the chance to win a major prize for conducting the 10-minute online questionnaire. Major suppliers such as Crown Equipment and Toyota Material Handling Australia have used results from previous surveys to meet the required needs from forklift users across the nation. Results from the survey will improve technology and enhance services offered to industry that meets the needs of material handling equipment owners. Enhanced operations with cost effective technologies have proven to be implemented since analysing feedback from forklift users who previously participated in the most recent 2018 survey. In 2018, 83 per cent of forklift users said safety was the most important attribute when evaluating forklifts. In a close second, 82.4 per cent of forklift users said reliability was a very important attribute of the machinery, this figure is a major increase from the 2012 results. Eight years ago, only 23 percent of respondents said reliability was the forklift’s most important factor. This shows the increased need for forklifts to be trustworthy and performing consistently for operations of users and their businesses. Performance, operator comfort and control were also highly noted by users as the most important features of a forklift. Features such as advanced technology, purchase price and warranty rated as low very important attributes. 12 | MHD MARCH 2020

The MHD Forklift Survey 2020 is currently live. As the market gets more competitive and digitalisation in the sector sets to soar in coming years, a shift in results of important attributes is expected to differ in forklift users surveyed this year compared to 2018 users. Interestingly, two years ago 52.5 per cent of respondents leased their forklifts with their supplier or distributor, 66.7 per cent had their tyres covered under the service contract and 55.8 percent had their forklift maintenance through the service contact with the supplier or distributor. The high response result indicates that people are after the full package when purchasing or leasing or a forklift. This year’s result predicts forklift users to voice their expectations for valuable contracts with suppliers and distributors that offer an all-in-one cost-effective agreement.

Other results such as leasing and purchasing agreements, a rank of most known and unknown forklift brands, opinions and preferred technical features of forklifts on the market will be revealed from a range of respondents in the logistics and supply chain industry who complete the list of questions. The survey is currently live and calling on forklift users who regularly use the vehicle to share their experience and help guide manufacturers and suppliers on future changes and trends. One lucky respondent will win two fit-bit’s, that have the ability to track daily activity through a wirelessenabled wearable device. To participate in the MHD 2020 forklift survey head to mhdsupplychain.com.au/ forkliftsurvey. ■

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MHD MERCURY AWARDS The Mercury Awards evening will be held at the Arts Centre in Melbourne.

AN EVENING OF RECOGNITION In conjunction with MEGATRANS2020, this year’s Mercury Awards will celebrate the outstanding achievements and successes of individuals and companies across the supply chain, logistics and materials handling sectors.

n Thursday 2 April 2020 at the Arts Centre Melbourne, logistics and supply chain practitioners will join together to celebrate the latest innovation and developments in their sector. The gala dinner will be held as part of the three-day MEGATRANS2020 conference, taking place at the Melbourne

Convention and Exhibition Centre. The Mercury Awards recognise the outstanding achievements and successes of companies across the logistics, supply chain and materials handling sectors and nominations for next year’s event are now open. This year’s judging panel has now

been finalised and features some of the most well-established and senior representatives from the industry. Including Dr John Hopkins, Senior Lecturer in Logistics and Supply Chain Management at Swinburne University; John Warda, Chairman at ICHCA Australia; Gavin Hill, General Manager – Strategy and Delivery at Transport Certification Australia; Paul Damkjaer, CEO at CBFCA Australia and Don Hogben, Chief Regulatory Policy and Standards Officer at NHVR. These Awards present an opportunity for recognising and rewarding operations, teams, or individuals who are making a difference in the logistics industry. The awards are sponsored by SCLAA, Victorian Government and NHVR. This year’s award categories are:

SUPPLY CHAIN INNOVATOR OF THE YEAR – SPONSORED BY NVHR

The Awards present an opportunity to celebrate and recognise excellence.

14 | MHD MARCH 2020

Recognises an Australian company working to disrupt the supply chain industry by demonstrated capabilities to offer innovation in at least one of the following areas:

MHD MERCURY AWARDS demonstrated how the technology improves logistics and materials handling efficiency and cost-saving.

“

The Mercury Awards recognise the outstanding achievements and successes of companies across the logistics, supply chain and materials handling sectors and nominations for next year’s event are now open.

environment and sustainability, productivity, efficiency and speed, cost-saving, safety, traceability.

BEST TECHNOLOGY APPLICATION A technology designed to enhance the logistics and materials handling sector that has

”

SUSTAINABILITY INITIATIVE AWARD A project or program that enhances sustainability in the logistics and materials handling industry that can demonstrate practicality of project or program.

FREIGHT TRANSPORT SOLUTION OF THE YEAR A solution for the movement of freight across land and/or sea, by any method, that has enhanced practicality with at least one case study of a customer experience.

BEST STORAGE SOLUTION A solution for storage in the logistics and materials handling sector that has enhanced practicality with at least one case study of a customer experience, including outcomes achieved in at least one of the following: efficiency, space-saving, cost-saving.

CONTRIBUTION TO INDUSTRY AWARD Recognising an outstanding contribution to the field of logistics and materials handling. ■ For more information please visit: www.mercuryawards.com.au

The awards recognise outstanding achievements and successes across the logistics sector.

MHD MARCH 2020 | 15

MHD COVER STORY

LUXURY LOGISTICS T

Frederic Parent, Director of Logistics at Bolloré Logistics Pacific reveals the details of moving some of the world’s highest value fashion goods with one of the first-ever 3PL robotics solutions.

he luxury market is large and growing. In 2018, the market grew five per cent, and reached an estimated $1.96 trillion dollars worldwide. The fastest growing area in this sector is personal luxury goods. According to Bain & Company’s annual study into the luxury goods market, personal luxury goods outperformed the overall market, with six per cent growth in 2018. This growth is projected to continue in the range of three to five per cent per year through to 2025, the Bain & Company report found. Part of this growth is due to flourishing luxury demand from Chinese consumers, the continued rise of online channels, and increasing influence from younger generations of consumers, Claudia D’Arpizio, lead author of the annual luxury study reveals. 16 | MHD MARCH 2020

Luxury shopping online has continued to accelerate in 2018, compared with physical channels, with a 22 per cent growth since 2017. Storing, picking, packing, and distributing luxury goods present a number of unique challenges as well as opportunities to utilise new and innovative technology. “With luxury fashion, we are talking about a very high dollar value product – so security, accuracy and inventory control are all absolutely critical,” Frederic Parent, Director of Logistics at Bolloré says. Bolloré recently won the business for a large multinational luxury fashion group’s distribution in Australia. For this particular customer, there was a need to rethink the usual warehousing methods to make way for a much more innovative approach. “At Bolloré, our philosophy is

to customise our solutions for our clients as much as we can. This client was after a very specific profile with a very large number of stock-keeping units (SKU). We wanted to find a solution that had the right level of accuracy and quality expected by the client, while also keeping control of the cost,” Frederic says. This particular client covers five different brands within the one group, resulting in an even larger number of SKUs. “We are talking about 30,000 to 40,000 different SKUs, but with a relatively limited stock. Additionally, this particular business model operates on a daily replenishment from the main distribution centre in Europe,” Frederic says. Luxury fashion differs from fast fashion in that there is limited density of stock. “If you think about luxury shoes, you may have 50 or 60

MHD COVER STORY

In addition, the high value of the products, means that they cannot be stacked. “With numerous luxury brands housed in a single location, and each brand having a unique product range, an error-proof system is vital,” he says.

GOODS-TO-PERSON SOLUTION

Bolloré has introduced 28 robots at its site in Sydney.

different SKUs because you have that particular shoe in a different size or colour. Each SKU may hold a few pieces of stock and then every day it is replenished from Europe. Once you put that number of SKUs on regular shelving you would have to travel very far to collect the orders. With all of this in mind, we knew that a goods to person solution was the only way we could do this efficiently, safely and accurately,” Frederic says.

Frederic knew he needed to explore a cost-effective solution for this particular client, but with the types of goods in mind, it could not compromise on quality, accuracy and safety. He was familiar with the Cohesio Group, a voice and robotics solutions provider, from a previous role where he worked with the organisation when they were formerly Voice ID. “I joined Bolloré around 16 months ago, and after a couple of months this project came up and I immediately thought of Cohesio and its AMR solution,” Frederic says. Before commissioning Cohesio, Arslan Qazi, Heads of Solutions for Bolloré Logistics Pacific looked around at the competition but could not find a competitor to challenge the solution Cohesio were offering. “Cohesio demonstrated a very good attitude and capabilities in terms of reactiveness. They are an experienced team, thanks to that they are very responsive and very customerfocused,” Frederic says. Tim Baracz, Cohesio Group’s Sales Director says the team are very proud of the project timeline and how quickly they were able to implement the solution. “With a compelling offering in the marketplace, efficiency in the

order-fulfilment process ensured lower operating costs for Bolloré’s clients. Typically, a project of this nature can take several months from conception to final delivery. This includes proof of concept testing and on-boarding the customer. But we were able to halve that time frame and deliver in four months, a feat of which we are very proud,” he says. The project entails 28 AMR in the Bolloré Sydney warehouse. “The robots reduce space cost through increasing storage density and minimising the operational cost through its efficient picking and high throughput. The endto-end data integration ensures faster and more accurate order fulfilment,” Arslan says. The Bollore team is confident they will reach the targets set with its customer. The project went live in December 2019, and according to Frederic from the first week in February Bolloré has already taken the solution to a high level of transactions. “The solution is very responsive, while it’s a bit early to talk numbers, with the high level of transactions we have seen in recent weeks we are very close to the targets that we have in mind,” he says. A sentiment that Ravi Nath, Head of Automated Solutions at Cohesio agrees with. “We are thrilled to see the company take the initiative with this type of technology. Payback periods can vary depending on the business environment and the operational nuances but the time frame can be significantly less than the payback period seen with fixed automation infrastructure,” he says.

The team at Bolloré is thrilled to work with this kind of technology.

MHD MARCH 2020 | 17

MHD COVER STORY

This robotics project is the first of its kind in Australia, Frederic says.

A FIRST FOR AUSTRALIA This project is the first-ever of its kind here in Australia, and Frederic says it’s been great to see how open to innovation Bolloré as a business is. “I was with the company two or three months when I started this project. I was so impressed that in just a few weeks our local team got the trust and confidence we

Frederic already sees an opportunity for introducing more robots.

18 | MHD MARCH 2020

needed from the company to start working on this,” he says. “In Singapore, we have a team working on these kinds of innovations, solutions, customisations. We have around 30 engineers who are absolutely innovation orientated. They explore a lot of automation solutions, but on a much larger scale,” Frederic says.

This project was unique in that the automation was required for one specific customer, within a larger 3PL space. “We had to show the team in Singapore that this was the right solution for this customer. They knew about the solution but as they are working on a much bigger scale with more than 200,000sqm of warehousing, they tend to introduce automation that they share across different customers,” Frederic says. At the site in Sydney, Bolloré services a number of different customers. This solution is agile in that it can be isolated for one customer in one area of the warehouse. Although the solution was intended for this client alone, after the implementation Bolloré is confident there is benefits to be realised from expanding the solution. “This could definitely be scalable to include other clients in the future. We currently have 28 AMRs but I could see an opportunity for more robots and more shelves in the near future. We’re even considering shelves on a mezzanine,” Frederic says.

MHD COVER STORY WORD OF MOUTH An added advantage of working on an Australia-first robotics by a 3PL for e-commerce project is the interest that it generated across the larger logistics sector, adding to an opportunity for recruiting talent. “We recruited most of the team showing them the solution before they started. They knew it was a robotics project for a high-end luxury brand. So the interest for this project was higher than usual,” Frederic says. For profiles like managers and inventory controllers, Frederic says that there was a lot of interest in these roles. “It’s definitely an attractive solution to show to the market,” Frederic says. Frederic says the solution really gave Bolloré the edge in coming up with the best option for this client. Through this solution we managed to demonstrate a precise level of accuracy and security that ticked all the boxes for this client,” he says. For Frederic, this kind of solution has a particular benefit here in Australia. “We all know that Australia is one of the most expensive countries in the world in terms of labour cost. So this really was a game-

The automated solution features a goods-to-person model.

changer for us to be able to offer our client this level of productivity,” he says. “This type of solution is a good compromise between the type of investment you have to consider upfront, and the benefit that you get from it. Working with Cohesio we got this crucial balance right, which is why we were able to offer this client the best solution in the market,” Frederic says. ■

Frederic says the team at Cohesio are great to work with as they are reactive and responsive.

MHD MARCH 2020 | 19

MHD MEGATRANS

FIVE REASONS TO ATTEND MEGATRANS2020 While the final programme details are currently being finalised, here are five reasons why you should attend this year:

2 3

It’s almost time for the logistics, transport, supply chain and materials handling industries to come together in Melbourne for what is hailed as the networking event of the year, MEGATRANS2020.

MEET WITH EXPERTS AND INFLUENCERS IN YOUR SECTOR

S EE THE LATEST INNOVATIONS IN ACTION

MEGATRANS will bring together the best and brightest in your industry for three days of networking and learning. Attendees have the opportunity to connect with new partners, sponsors and some of the leading minds in the logistics industry.

Across the logistics industry margins are getting tighter and tighter, and efficiency and productivity gains are at the top of everyone’s priority list. At MEGATRANS2020 you will be able to see the latest innovations in your sector in action. 2018’s event featured robotics, 3D printing, drones, sensors, smart scanning, electric vehicles and forklifts and 2020’s conference will feature even more of the latest ground-breaking technology that is designed to make logistics processes as seamless and efficient as possible.

NETWORK, NETWORK, NETWORK By attending the largest supply chain and logistics conference in Australia, you’ll get the chance to connect with industry leaders and innovators during the speaker programme, exhibition and various networking and awards events surrounding the show. Make the most of this opportunity by grabbing a stack of business cards and engage with potential peers and partners.

CONNECT WITH POTENTIAL CUSTOMERS At MEGATRANS2018, attendees and exhibitors alike commented on the ample opportunities they had to connect with new customers and clients. This year, there will be more exhibitors and attendees offering a variety of ways to connect with new business.

20 | MHD MARCH 2020

REMAIN AT THE FOREFRONT OF THE DIGITAL REVOLUTION If you’re interested in staying on the cutting edge of your industry, then MEGATRANS is the place to be. With exhibitors showcasing the latest technology across Industry 4.0, including robots, drones, autonomous vehicles and more, MEGATRANS is set to preview the trends that will shape the next ten years of logistics.

To book your tickets, visit: www.megatrans.com.au/ticket/

4 5

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MHD SPEAKERS

MEET THE SPEAKERS At this year’s MEGATRANS2020 the brightest and best minds in the logistics, supply chain and materials handling sector will come together to share knowledge and best practice. We profile some of the speakers who will be presenting and discussing the latest innovations at the conference. DARREN RAWLINSON,

Regional Director Solutions Development – APAC at Dematic Darren works across some of the most innovative automation and technology projects in the Asia Pacific region. At MEGATRANS2020 he will be sharing some of that expertise as he discusses the opportunities among the disruption. Working across the Asia Pacific region, Darren has noticed a real shift towards demand for faster, more convenient delivery. “We’re seeing this across the entire region, many Asian countries are able to offer a two-hour delivery window, but half of that time is spent in traffic. So, they are picking and packing in record time to meet that consumer demand,” he says. For Darren, that same-day delivery model presents a number of challenges for the traditional bricks and mortar retailers. “If people can check a price on their phone while they are in store, and that vendor can guarantee home delivery that same afternoon and is competitive on price, this really creates a challenging environment for traditional retailers,” he says. Darren is looking forward to connecting with the industry at MEGATRANS2020 and says that these kinds of events are rare in the logistics and transport industry. “There really only is two or three opportunities like this a year, so I really urge everyone to get involved and come and see what we have to offer at MEGATRANS2020,” he says. Darren will be speaking on Friday 3 April on the topic: From disruption comes opportunity.

22 | MHD MARCH 2020

MONICA VELEZ,

National Director, Logistics & Supply Chain Consultancy | Occupier Services, Colliers International Monica is a passionate and engaging logistics and supply chain expert, backed by twelve years of international experience across businesses including Keralty, CEVA Logistics, Asahi Beverages and Colliers International. Monica understands operational, strategic and commercial objectives to ensure best-practice, and understands the opportunities for businesses around supply chain transformation, network optimisation, strategy and digital challenges. Monica started her career as an industrial engineer in her home country of Colombia. After completing her studies, Monica worked at CEVA for five years in a number of different roles. “I was designing warehouses and transport solutions for a number of different industries. From automotive to FMCG there was a great variety,” Monica says. Monica has also recently co-authored an e-commerce paper called The Industrial Property of the Future, focussing on how property can impact on logistics and supply chain, thoroughly explaining opportunities for optimisation. The report is in final stages of editing and will be launched at the Colliers stand at MEGATRANS. Monica will be discussing warehouse design, automation, technology, functionality and last-mile logistics. Monica will be sharing her expertise on all things e-commerce on Friday 3 April.

STUART BALLINGALL,

Executive General Manager, Transport Certification Australia The Transport Certification Australia (TCA) is a national organisation that provides assurance services relating to transport technologies and data to enable improved public purposes outcomes from the road transport sector. Stuart Ballingall has been leading the association for the past year in his role as Executive General Manager. With an extensive background in senior public and private roles across the transport sector, he is excited about the benefits that telematics can offer the road transport industry. Stuart says telematics is an evolving field. “Transport is like most other sectors in that more things are becoming connected. This gives the opportunity to develop insights that stakeholders haven’t been able to have access to before. It’s driving a general update in telematics, but also in how this kind of technology can be used,” he says. For Stuart, MEGATRANS2020 will offer a unique opportunity for all aspects of the logistics and transport sector to come together and hear about the developments taking place in telematics. During Stuart’s presentation he will be discussing the National Telematics Framework, the framework is a digital business platform consisting of infrastructure and rules that support an open marketplace of telematics and related intelligent technology providers. Stuart’s keynote speech will be taking place on Thursday 2 April. ■

MHD MEGATRANS PROGRAMME

MEGATRANS2020 CONFERENCE PROGRAMME WED 1 APRIL 07.00-09.00

VICTORIAN GOVERNMENTAL MINISTERIAL BREAKFAST

SUPPLY CHAIN TOPICS COVERED:

09.00-12.30

• Addressing the skills gap • Modern day slavery in the supply chain • Automation and safety • Cargo handling across the supply chain

INTERNATIONAL TRADE AND SHIPPING

13.30-17.00

TOPICS COVERED:

• IMO 2020 sulphur caps • The global economy – global events and the ripple effect

THURS 2 APRIL 09.00 – 12.30

ELECTRIC AND AUTONOMOUS VEHICLES TOPICS COVERED:

• Is the electric vehicle the future? • Electric vehicles and the freight task • Connected autonomous vehicles

ROAD TRANSPORT TOPICS COVERED:

13.30-17.00

• Megatrends – what are they and why do they matter? • Safety in road transport • Connected technology – changing the way we use telematics • What does the data really mean?

FRI 3 APRIL E-COMMERCE

TOPICS COVERED:

09.00-12.30

• The rise of e-commerce – a global perspective • How do we meet the ever-changing demands of the consumer? • Opportunity among an era of disruption • Personalising the impersonal

For more information and for details of the full line-up of speakers and panellists, visit: www.megatrans.com.au/conference-program. 24 | MHD MARCH 2020

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MHD TECHNOLOGY

eStore operates across 60,000 sqm of combined warehouse space.

MEET AUSTRALIA’S LARGEST E-COMMERCE 3PL G

Leigh Williams, Founder and Managing Director of eStore Logistics explains how the company is able to fulfil up to 80,000 orders a day for some of Australia’s major retailers. Brittany Coles reports.

rowth in online shopping is continuing to advance Australia’s e-commerce market. According to a 2019 e-commerce industry report by Australia Post, $279.1 billion was spent on retail goods at the end of the financial year. Sales events are strongly influencing the boom of the retail industry, with Australian online shoppers spending $29.3 billion, rising 20 per cent per annum. As more shoppers turn online for convenience, Leigh Williams, Founder and Managing Director of eStore Logistics says its focus on seamless order execution and the supporting fulfilment processes has helped position its company as Australia’s largest e-commerce third-party logistics provider (3PL). Leigh founded eStore Logistics in 2008 at the age of 26. The company specialises in providing warehousing and order

fulfilment services for online retail and retail store businesses and is growing by over 40 per cent each year, more than double the rate of the growth of Australia’s e-commerce market. eStore Logistics operates across 60,000 sqm of combined warehouse space in four facilities in New South Wales and Victoria. The company is currently building a new headquarters in Melbourne that will open mid-year. This follows its most recent facility that opened in August last year in the industrial hub of Truganina, Victoria. eStore Logistics’ Warehouse Management System (WMS) began as an in-house system, that was initially designed to serve a small number of clients with low complexity requirements. After the volume of orders processed following the Christmas and Boxing Day sales in 2013, Leigh says if they continued with its current WMS,

it wouldn’t stand future requirements, therefore they needed a more scalable system. In order to take the business to the next level, the company selected Manhattan SCALE to enhance its logistics operations. Today, the company fulfils up to 80,000 orders a day for some of Australia’s largest retailers and they’re continuing to ramp up its distribution network to meet market demands.

OPTIMISING OPERATIONS eStore first implemented the Manhattan SCALE WMS seven years ago. Leigh says since our latest upgrade of Manhattan SCALE in 2016, the WMS has supported the company’s growth by adapting to required processes, as they need to continuously optimise operations. Manhattan SCALE is recognised as a global leader in supply chain innovation. Leigh says the driving decision to MHD MARCH 2020 | 27

MHD TECHNOLOGY

eStore has recently introduced automation to its warehouses.

implement the system was its capability to be flexible, run multiple sites and be easily integrated with other business and client systems. eStore Logistics service over 60 retailers, including large ASX listed online and omni-channel retailers that are estimated to have an annual revenue of $10-500 million. The company’s warehouses pack orders for a wide range of products including wine, iPhone screens and couches. Leigh says due to the number of specific client requirements, SCALE has been a trustworthy tool to ensure customer accuracy. eStore relies on Manhattan SCALE to back all of its systems, processes and teams. “Integrating Manhattan gave us the capability to fulfil all our client orders with confidence, it was a game changer,” Leigh says. eStore Logistics is focused on fast and accurate deliveries. The Manhattan SCALE WMS allows the company to use both cloud and on-premise solutions. Advanced algorithms are used to mathematically organise inventory to assist the speed of goods flowing in and out of its warehouses. The SCALE WMS has a unique 3D cubing functionality. It is preconfigured with suitable packaging types such as cartons and satchels for every client, that allows the choice of diverse options of available packaging. Once an order for a client is received the SCALE WMS automatically runs cartonisation algorithms to ensure that each order and item is allocated to the most appropriate

28 | MHD MARCH 2020

size of packaging. This has eliminated manual entry and packaging selection errors, improving the company’s efficiency process within the warehouse. Leigh says when it comes to outbound fulfilment, the Manhattan solution is key in making sure that orders are being fulfilled accurately, timely, and in a cost-effective manner.

NEXT GENERATION TECHNOLOGY Leigh says technology has enabled the company to realise the lower cost of service to its customers, whilst also increasing service levels. eStore logistics is preparing to further improve its systems and processes by innovating technology in the warehouse with support from Manhattan.

Leigh says technology has enabled the company to realise the lower cost of service to its customers.

eStore has recently introduced automation to its warehouses. eStore Logistics has also committed to put the robotic technology into a second distribution centre by mid-year. The roll out of the new initiative began last year and Leigh says this is the next step in preparing for the demand to come from the changing e-commerce landscape. Leigh believes automation is solidifying eStore as a major leader in Australia’s e-Commerce fulfilment market. Amazon USA has been offering three-hour delivery for its customers for quite a while according to Leigh, and Australia has been slow on the bandwagon. The new robotic goods-to-person fulfilment technology eStore Logistics has chosen for its operation is highly

MHD TECHNOLOGY fit-for-purpose for e-commerce and omnichannel fulfilment operations. Leigh says this will further increase its ability to increase service through later cut off’s for same day fulfilment and fast three-hour delivery. “With our robotic system we can provide retailers a 5pm cut off for same day fulfilment and three-hour delivery. But for eStore to provide this level of service, the only way to cost effectively achieve this is by implementing robots,” Leigh says. Isolating an order on its own in a manual picking environment, comes with a high cost due to the inability to batch orders and optimise picking operations. Leigh says the robotic system will enable the company to perform highly efficient operations with improved service offerings across their fulfilment centres due to the rapid picking system. As stocks arrives, our staff will receipt it onto Manhattan SCALE and then put it away into the shelves of the robotic system. A robot will then pick up and transport the shelving unit to a storage location determined by the system using an algorithm, which asses the sales velocity of each product. Once an order is received from a retailer, the robots will pick up and move shelves. The shelves contain the products required for the order and will transport them to a picker. This essentially eliminates manual movement from the pick and pack process. Leigh expects that the system will improve the working environment for staff, make stock put away, picking and packing easier and will provide higher throughput during peak periods. The implementation of the robots is a cost-effective tool that is fulfilling rush orders Leigh says. He credits Manhattan SCALE as the key system that has allowed the integration of its WMS with the robotic system. “The algorithms we have developed within the Manhattan SCALE enable us to accurately and efficiently perform all tasks required within a fulfilment centre, including integration with the robotic system,” Leigh says. “Manhattan SCALE gives us vital information on the performance activities within the warehouse, including receiving stock inventory data, managing inventory and it’s creating order in the robotic system too,” “Manhattan SCALE is our core work execution system. Without Manhattan SCALE we are unable to perform the functions we require, it works well and plays a huge role in the integration of our various systems,

Leigh Williams is Founder and Managing Director at eStore Logistics.

“

Manhattan SCALE gives us vital information on the performance activities within the warehouse, including receiving stock inventory data, managing inventory and it’s creating order in the robotic system.

”

especially in relation to the robots.” Leigh says data from Manhattan SCALE influences decisions on manual labour across the warehouses too. “It is definitely the core of our business that supports our growth,” Leigh says.

ONGOING ADVANCEMENTS eStore is constantly enhancing operations and is always looking at taking steps out of processes to further improve service levels and reduce costs. Leigh is adamant that technology is important in creating a more efficient warehouse. He believes the logistics industry needs serious improvements to advance operations and catch up to international e-commerce environments. Leigh encourages anyone who is searching for a new WMS or invest in new technology to do its research. “Ensure that you’re really clear about the scenarios in your warehouse operations and how you need the system to work. Get the vendor to demonstrate live scenarios and document those things,” he says. “It’s the most efficient way to get an understanding of what WMS your operation needs.” Leigh says Manhattan did that process really well and has remained highly flexible for its changing needs as a 3PL who cover many different business and customer requirements. He appreciates the transparency Manhattan provides and says if there are additional processes to add or subtract from the WMS then Manhattan helps build on new initiatives to grow both their businesses for the better. “Manhattan is an excellent partner to work with, they not only work with us, but they support us too,” Leigh says. ■

MHD MARCH 2020 | 29

MHD EVENTS ALC Forum will examine the opportunities for the freight sector.

ALC FORUM 2020: YOUR FUTURE IN FOCUS The ALC Forum 2020 event takes place this month. Here Kirk Cunningham, CEO of the organisation urges MHD readers to attend and take part in the conversation that will shape the future of logistics.

Michael McCormack, Deputy Prime Minister of Australia.

uccess in any business starts and ends with the extent to which an organisation meets the expectations and needs of its customers. As headwinds increase across our industry it has never been more important to grasp rapidly evolving client needs and position our businesses 30 | MHD MARCH 2020

to deliver. From the “where is it now?” demands of individual e-commerce customers to the increasingly sophisticated expectations of largescale clients, we must find ways to meet the demands of customers that are increasingly attuned to rapid delivery, and unforgiving of those who prove unable to provide it. 80 per cent of Australians now engage in some degree of online shopping, and that figure is expected to continue growing exponentially. For the logistics industry, a singular challenge associated with this growth is that household consumers increasingly expect delivery to be part of the advertised price. Already, around 65 per cent of purchases come with ‘free’ shipping, and research suggests that close to 60 per cent of Australians will abandon an online shopping cart if presented with higher-than-anticipated delivery costs when checking out. At the same time, the personal ethics of consumers – particularly among younger cohorts – are influencing purchase decisions. Today, customers actively seek out information regarding the freshness and provenance of the food on their tables. This is especially true of increasingly sophisticated markets in South East Asia; a

region that Australian producers are geographically well-placed to service. These consumers also want to feel reassured that the products they use in their day-to-day lives have been transported to them in a way that minimises environmental impacts, from packaging to pollution, from waste reduction to carbon emissions. Responding to and reconciling these competing demands - better and faster services at lower environmental and dollar cost – are an enormous challenge for the logistics industry. Successfully and efficiently meeting the challenge begins with focussing on the future and ensuring that Australia is equipped with high quality freight transport infrastructure that embraces technology and facilitates the faster, safer and greener movement of freight through supply chains, whether it is destined for domestic consumers or for export markets. It is rare for a genuine ‘greenfields’ opportunity for a globally-significant freight and logistics hub to emerge in a major Australian city. Yet, that is precisely what is now emerging in Western Sydney – and the Australian Logistics Council is preparing to showcase it as part of ALC Forum 2020. For the first time, we will present the nation’s premier logistics industry

MHD EVENTS

event in this flourishing economic region that is already home to one in ten Australians - and is set to attract another half a million residents by 2031. On 18-19 March, ALC Forum 2020 will connect business leaders, government representatives, investors, infrastructure owners, educational institutions and leading logistics companies with the business opportunities that now abound in Western Sydney through Australia’s supply chains. With freight infrastructure including the Moorebank Intermodal Terminal and Western Sydney Airport set to transform supply chains, ALC Forum 2020 is your chance to connect with those who are designing the future - and make sure your business understands what that future means for you. With an estimated two thirds of the world’s population within half a day’s flight from Western Sydney, the new airport is set to become a key gateway for Australian producers taking their goods to emerging international markets. ALC Forum 2020 will explore how

some of the best-practice approaches to planning, building and optimising freight infrastructure in Western Sydney can be deployed across other parts of Australia, enhancing the efficiency, safety, sustainability and resilience of the national supply chain. Other elements of the ALC Forum 2020 program are set to examine the challenges and opportunities for the freight sector nation-wide in productivity, safety and building a sustainable workforce. By attending, you’ll hear insights from leading political figures, researchers and key industry leaders as they share their perspectives on emerging trends in freight movement and discuss the policy and regulatory reforms needed to accommodate a freight task that will increase by 35 per cent by 2040.The program will also drill down to examine specific issues relevant to freight movement across all modes – road, rail, maritime/ports and air - as well as diving into policy matters that cut across all forms of freight transport, including competition policy, land use

ALC Forum provides an opportunity to network and share best practice. planning and the impact technology is having on day-to-day operations. ALC Forum 2020 is an industry event that connects the whole supply chain at the most senior levels - service providers, infrastructure owners, investors and customers. If you only make one investment in the future of your business or career in 2020, this should be it! Be part of the conversation that sets the future of your industry. n

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MHD TECHNOLOGY

COBOTS: THE NEXT REVOLUTION As new technologies bring humans and robots closer together, what is the best way to ensure safety? MHD finds out.

ndustrial robots have been used in workplaces for a number of years now, usually in the form of automated arms that ordinarily perform tasks such as welding, painting or assembly. This work has often taken place in an isolated area of a manufacturing plant or warehouse. For the last two decades, there has been an increase in the volume and type of uses that robots can assist with. This naturally has led to an increase in interaction between robots and humans, so much so that a certain type of robot that operates in this field has been developed - the cobot. A cobot, or collaborative robot, is a robot that is intended to interact with humans in a shared space, or to work in close proximity to humans. It’s main use is to assist humans and help increase efficiency and productivity collaboratively. Whereas industrial robots would previously work in isolation from human contact, these types of robot now operate within the same shared

Whenever humans and robots interact, there is always a concern for safety. 32 | MHD MARCH 2020

space that workers do. One organisation that has extensively explored the use of cobots is Amazon. In a number of warehouses across the world, Amazon is utilising robots to move around fulfilling orders at an impressive pace. According to Tye Brady, Chief Technologist for Amazon Robotics the robot-human collaboration has given the organisation a “beautiful edge” over the competition and the goal of the robots is to “extend people’s capabilities” rather than replace them. Amazon is so invested in the cobot space that in 2012 the organisation acquired logistics robot-maker Kiva Systems, a Massachusetts-based company that manufacturers mobile robotics fulfilment systems.

HUMAN AND ROBOT INTERACTION – A CAUSE FOR CONCERN? According to Brenton Cunninghan, CEO at Diverseco, whenever robots and humans interact there will

always be a concern around safety. “In this kind of environment there is often a hesitation that if you are working in close proximity to anything that moves there is a fear that you will run into it or it will run into you,” he says. One of the key aspects of addressing this safety issue is making sure that you have the right technology in place to detect and react to a potential collision, Brenton says. Typically, in the robotics space if a safety incident occurs, such as a collision, the stop event comes from a detected peak in the electrical current of the robot. “All the big brands in this space are adopting the same approach to safety as each other. They contain motors that are current monitored and look at whether there is a wild change in this current, signifying an impact, and stop the robot in its tracks,” he says. According to Brenton, while this method is a good first attempt at collision detection, it also leads to potential uncertainty and risk.

MHD TECHNOLOGY the electrical current method.” “All six axis cobots in the Doosan range feature six torque sensors, one for each axis. They are mounted on their articulated arms, which make them inherently safe. In addition, the cobot arms are accurate and fast with a TCP (Transmission Control Protocol) speed of 1 m/s,” Brenton says.

USER FRIENDLY

The torque sensors on Doosan cobots are known for their level of sensitivity.

TORQUE TALKS Diverseco has recently entered the cobot space in partnering with Doosan Robots, a South Korean headquartered manufacturer of next generation collaborative robots. The agreement with Doosan Robotics positions Diverseco as the first Australian distribution and systems integration partner and according to Brenton is part of a broader strategy for the business to continue expansion of its automation division. “The agreement with Doosan allows us to add to our already impressive line-up of automation solutions that include Kawasaki Industrial Robots, OnRobot end effectors among others,” he says. A main point of difference of the Doosan offering in the collaborative robot space is that the robots use six separate torque sensors, one on each axis. “The torque sensors on Doosan cobots are known for their unparalleled level of sensitivity, and are considered the best in the industry. These torque sensors allow Doosan cobots to detect external forces as precise as an additional 0.2N and much more quickly than conventional current control methods. Additionally, the Doosan cobots are equipped with torque sensors on every single joint, rather than just on one or two axes, this also ensures an outstanding level of safety,” Brenton says. When looking at a workplace that integrates Doosan Robotics’ products, one can see how easily and seamlessly human workers and robots are able to collaborate side by side, Brenton says. “The torque sensors are remarkably more accurate and sensitive than using

“

The torque sensors on Doosan cobots are known for their unparalleled level of sensitivity, and are considered the best in the industry.

”

An additional benefit of the Doosan offering is its ease of use and installation. “Doosan Robotics’ cobots are easy to use and simple to install. The design features mean the cobots are safe, and this safety can be totally reconfigured and enhanced through use of Doosan’s collaborative workspace features,” Brenton says. Diverseco offers a total systems integration service with all of the products and solution across its portfolio. “Our niche is our incredible software, engineering and program expertise. Our experts go to a site, assess it and get it working and monitor it over time to make sure that it’s performing as it should be,” Brenton says. The Doosan offering is also ideal for lower payload and lower cycle-time activities that involve working near humans such as machine tending, assembly, pick and place, packaging and palletising – so ideal for the logistics industry. They can also be easily re-deployed when combined with plug and play end effectors like On Robot grippers, which are also available from Diverseco. With the right end effector, anything is possible. “We have a number of robotics automation experts at Diverseco who can assist in attaining new automation capabilities using Doosan collaborative robots,” Brenton concludes. ■

MHD MARCH 2020 | 33

MHD PROPERTY

FORMER AUSTRALIA POST DC AVAILABLE IN BRISBANE A

A rare opportunity for industrial users has come up in Brisbane, with a former Australia Post sorting and distribution facility in Underwood available for lease.

ustralia Post originally developed the site in 1991 before expanding the site further in 2000. The facility comprises 24,873sqm of under-roof area located on a 97,840sqm site. According to Anthony White, National Director at Colliers International, this new leasing opportunity will deliver some huge cost benefits for the right user. “If you were going to build this kind of facility again, you would be looking at a significant investment. By leasing an existing building there is a huge costsaving to be realised,” he says. The facility was purpose built as a sortation and distribution centre and is typical of Australia Post Distribution Facilities in that it has overly generous truck hardstand and excellent staff amenities. “It has a massive amount of infrastructure already included. The fire systems were recently upgraded, the site is fitted with air

34 | MHD MARCH 2020

conditioning and has great general facilities for staff. The cost replication of this kind of infrastructure is massive,” Anthony says. The site’s underlying infrastructure includes a large three-sided dock with 13 sunken docks and undercover loading for 5 B-doubles, drive around and drive through access as well as truck servicing, refuelling and wash facilities. The site will be ready for new tenants in May, with areas available from 8,000 sqm. According to Anthony, the site is suitable for a range of different businesses. “Whether it is straight forward warehousing and distribution, 3PL or e-commerce organisations, this site is suitable for any organisation looking to get the most out of their spend,” Anthony says. Underwood itself offers a great base for distribution. “It is a landlocked precinct which sits with proximity to both the M1 and Gateway Arterial

Network, allowing for excellent connectivity to Metro Brisbane, Ipswich and the Gold Coast. The Port of Brisbane and Brisbane Airport are within 24 minutes and the site sits directly adjacent to a regional shopping centre providing excellent amenity for staff,” Anthony says. Sites like this are rare to find in this area of Brisbane, and Anthony is urging anyone with a warehouse leasing requirement to get in touch as soon as possible. In addition to the flexibility around size of space required, the owner is also flexible with regards to length of lease. “We’re happy to discuss anything from a three to ten-year leasing arrangement. So this site could be ideal if you’re not sure what demand will look like in the upcoming years,” Anthony says. To find out more, contact Anthony White, National Director – Industrial, Colliers International on 0402 026 825 or at anthony.white@colliers.com. ■

MHD MATERIALS HANDLING

For Smart Recycling, operating Toyota electric forklifts makes financial sense.

CHARGING AHEAD

An environmental entrepreneur operating some of Victoria’s largest recycling businesses has unlocked the economic potential of Toyota Material Handling Australia’s electric forklifts by charging them with solar electricity

perating from Dandenong South, Victoria, Smart Recycling and its associated businesses annually divert over 50,000 tonnes of waste from landfill and is one of the state’s largest timber pallet recyclers. The Smart Recycling site transforms 95 percent of receivedwaste into cost-effective, environmentally friendly products. Smart Recycling managing director, Ward Petherbridge, says his business started transitioning from dieselpowered forklifts to a fleet of Toyota electric-engined equivalents after entering a business founded by his father, Geoff Petherbridge, who formerly operated a sand pit and solid waste tip on the present site. Ward sparked his passion for environmentalism whilst studying environmental science at University in the Netherlands and afterwards brought his learnings back to Australia. “We had the permits to receive 36 | MHD MARCH 2020

waste, so we came up with the idea of recycling,” he says. “Recycling was pretty advanced in Holland in the Nineties, but there wasn’t much of it going on in Australia at that time. In 1995, I thought it would be a good starting point to separate green waste for composting and to make a blended top-soil. Then timber-mulching. We grew from there and then started making pallets. Now, recycled pallets represent about 80 percent of the turnover on the Smart Recycling site. “We manufacture pallets from recycled timber and also repair damaged pallets. We provide a net carbon benefit of 14,500 tonnes from timber recycling, alone. That business employs about 40 staff and that’s what all the Toyota forklifts on that site are for.” Presently, Smart Recycling has four Toyota 8FBN 2.5-tonne electric forklifts and is about to add another to its fleet. The site’s former business relied

exclusively on diesel-powered forklifts but after installing a massive solar-system on the depot roof, Ward intended to harness its economic potential by switching to batterypowered Toyota forklifts. “The impetus for getting Toyota electric forklifts was putting 100kW of solar on our roof, which provides a ‘free’ source of electricity for charging the forklift batteries,” Ward says. The heart of Smart Recycling’s business is reducing energy consumption and waste via efficiency which, hand-in-hand, creates an economic benefit and competitive edge. “It’s the ethos of our business: our mantra is reduce, reuse, recycle, recover - and it also makes economic sense,” he says. “With our transition from diesel to electric Toyota forklifts we are saving a-good $100 per week, per machine on fuel. That really adds up as savings.

MHD MATERIALS HANDLING “The solar system is so efficient I have paid only a few hundred dollars for electricity over the last couple of years. “The pay-back on the investment in the solar system is only about 3.5 years and we’ve had the electric Toyota forklifts for two years. So once it’s paid off, operating our Toyota electric forklifts makes even more financial sense,” Ward says. Toyota Material Handling Australia (TMHA) area sales manager, Grant Owen, says he personally shares Ward’s commitment to reducing waste. “I like to be environmentally responsible and I find it important to consider the longevity of the things we use because, collectively, it makes a huge difference,” Grant says. “Ward is naturally passionate about reducing environmental impacts through recycling and embracing technologies to do so. He’s a champion of waste-minimisation and he’s a natural forward-thinker. As such, he chooses the eco-friendliest equipment possible. “He only deals with equipment that has low-footprint credentials and closely examines the lifecycle of equipment. That ties back to the quality, reliability and durability of our machines, which is a cornerstone of the Toyota Advantage and the reputation we go by. “Some forklifts are built with planned obsolescence, but we at Toyota Material Handling build our forklifts to last a very long time- so

that in itself makes a significant accumulative difference over the lifecycle of the machine.” Ward agrees: “We’ve had a lot of different forklift brands over the years and, comparatively, the Toyotas are very-well built,” he says. “In terms of quality, you generally get what you pay for. Some forklifts are a fraction of the cost but they don’t have the same lifecycle. Toyota forklifts are resilient machines. “We bought our first diesel Toyota forklifts for this business around 2004. They have about 15,000plus hours on their engines and they’re still going strong. We have two other depots that don’t have solar production, so I have them operating there. “The oldest electric Toyota forklift has only been in service for about two years and nothing has gone wrong with it. “Another observation I have about longevity is not only about Toyota forklifts, it’s about TMHA staff. I think I’ve only ever dealt with two different people such as Grant Owen in a couple of decades.” Ward’s vision extends even beyond the service life of his Toyota electric forklifts. “For us it’s about the chain of responsibility and the circular economy. For products, it’s very important in the design phase to plan what will be done with each major component at end-of-life. You need to ask: ‘How is it recycled and what is it turned back into?”

“In this case, you want to know almost all forklift can be recycled. We’re interested in that because it’s the business we’re in, but also such considerations might become compulsory. E-waste is going to be banned from landfill so things such as mobile phones and TVs will need to be broken down and recycled. It may end up being the same case for forklifts. ‘Luckily’, Toyota forklifts are highly recyclable, being mostly steel. There’s actually very little plastic in them, so a relatively minuscule amount of the machine is unrecyclable.” An example of such consideration is the recyclability of the batteries that power Smart Recycling’s fleet of electric forklifts. TMHA’s Grant Owen says there was a conscious decision to go with leadacid batteries because they are 100 percent recyclable: “The plastic, the acid, the lead - everything,” he says. “Also, scrap-metal yards love to recycle our forklift bodies because of the high grade of Toyota steel.” The conscious decision made by Smart Recycling to employ Toyota electric forklifts has a present and long-term benefit for its profits, and also makes an exemplary contribution to the planet’s wellbeing. Ward points to industrial solar as being key to such success. For more information freecall 1800 425 438 or visit www. toyotamaterialhandling.com.au ■

Smart Recycing operates from Dandenong South in Victoria.

MHD MARCH 2020 | 37

MHD SAFETY

ASSESSING YOUR WORKPLACE RISKS Mark Byrne, Senior Forensic Consultant at Jamieson Foley says there is a big push in improving work safety in Australia. Here he offers some thoughtful advice for ensuring everyone in the warehouse stays safe.

“W

e have found that there are a lot more incidents involving forklifts and mobile plant in and around the logistics environment,” Mark Byrne, Senior Forensic Consultant at Jamieson Foley & Associates says. From handheld trolleys, to forklifts, to automated vehicles – there is a lot of moving parts in a logistics environment which contribute to a high level of risk for workers, Mark says. “There has been a big push from Work Safety Australia with regards to mobile plant environments and organisations need to be smarter about safety. They need to ensure that they are carrying out the appropriate investigations when incidents do happen,” Mark says. Mark has an extensive background in investigative processes, having spent 25 years working for the NSW Police crash investigation department. After this he spent a number of years in the private sector investigating safety issues in industry. We use many methods in our analysis and investigations, such as TapRooT, ICAM (Incident Cause Analysis Model), Apollo, Bowtie and 5 Whys but one that Mark is urging logistics organisations to adopt is Root Cause Analysis (RCA). “RCA is a popular and widely used technique to identify the causal factors that lead to an unanticipated event. This system can be used in any investigation and almost any industry. It is commonly used when incidents occur in a motor vehicle, personal injury and workplace incidents,” he says. The system is used to identify the root causes of a particular problem. It explores and identifies what happened, why it happened and

38 | MHD MARCH 2020

Mark Byrne, Senior Forensic Consultant at Jamieson Foley.

what controls or countermeasures should be implemented to prevent a reoccurrence. “It’s evidence-based analysis. At the end of collecting all of the information, you sit down and ask yourself a series of questions with yes or no answers. Anyone can work out what happened, but the big question is why did it happen and how do we stop it from happening again?” Mark says. For Mark, a lot of people think they are doing safety well. But when it comes down to it they are not using the principles of RCA, which is absolutely critical to a successful investigation. “A root cause can be defined as the absence of a best practice or failure

to apply knowledge that would have prevented the problem. RCA takes incident causation further than the traditional finding of operator error or equipment malfunction. It guides investigators to identify evidence that influenced the operator to act in the manner they did, or why the plant did not perform as designed,” Mark explains. People don’t go to work to stuff up, Mark says. “A lot of safety investigations ccast blame on an individual and the investigation stops there. But using the principles of RCA can take it further. It looks into why it happened, was it the training, was the forklift looked after, what about the environment in which it happened? It goes that step further.”

MHD SAFETY Jamieson Foley’s investigators have in excess of 60 years’ experience, encompassing most industries, including warehousing and logistics. “We have engineers with the practical expertise, and then I have more than 25 years of investigative experience both in a criminal and civil environment,” Mark says. The organisation has also successfully conducted RCA’s into incidents throughout Australia, New Zealand and South East Asia. “With our experience we have knowledge of the mechanical engineering side of the issue as well as the human error side,” Mark says. Jamieson Foley can offer a review of a particular incident or they can also provide a full audit to ensure that a site is compliant with the obligatory standards, something that Mark says is extremely important in the logistics and warehouse space. “The nature of logistics is that most sites are tightly packed and there is a lot of interaction with moving vehicles,” Mark says. Jamieson Foley offer assistance with strategy around safety policy, procedure, human engineering and auditing. “For me, good safety practice comes down to three

“

Using the principles of RCA can take it further. It looks into why it happened, was it the training, was the forklift looked after, what about the environment in which it happened? It goes that step further.

”

things. The first being that all incidents and near misses need to be investigated properly and there needs to be an outcome whereby they don’t happen again. Secondly, you need to look after your staff, and finally this kind of practice offers a financial benefit. It makes good business sense to operate a safe environment,” Mark says. Mark says there is an added benefit to outsourcing safety audits and investigations. “With us being independent we can give an honest opinion; we have no bias or local politics. It’s a high-level investigation,” he says. All of the team at Jamieson Foley stay up to date with regulation and compliance requirements as they change, and the company can provide an opinion on safety practice or carry out an entire investigation. “We can do whatever is needed. Whether it’s a business with one forklift or a huge fleet, the responsibility of keeping people safe is the same,” he says. For Mark, incidents that include near misses must be addressed, and the expertise of the team at Jamieson Foley can help eliminate those risks in the future. “A near miss is good luck, not good management,” he says. ■

There is many added benefits to outsourcing safety audits and investigations, Mark says.

MHD MARCH 2020 | 39

MHD SUPPLY CHAIN

The team at Dexion pride themselves on their expertise and nationwide support.

SUPPORT YOU CAN TRUST

David Maycock, Head of Industrial and Shared Services at Dexion, says it’s the people who provide innovation, expertise and ongoing nationwide support that puts the company in a class of its own.

ver since we designed the first slotted angle shelving system more than 80 years ago, Dexion’s core focus has remained the same – to provide trusted solutions to our customers. To achieve this, we not only employ the very latest in engineering, manufacturing and automation, but the best people to ensure our solutions fit your organisation like a glove. Our national Dexion supply centres have experts close by – ready to work alongside you and share their immense technical

40 | MHD MARCH 2020

knowledge and local know-how on any project, to ultimately boost your productivity.

SUPPORTING SMART ORGANISATIONS Our long history in this industry underpins our commitment to provide the highest quality support, along with innovations throughout the supply chain. It’s no accident many of the world’s largest organisations trust us with their most important assets. We don’t just add value – we add smart thinking which flows through

to all areas of their business. Our team has developed sophisticated warehouse solutions for a diverse range of customers such as; Hyundai Mobis, Kimberley Clark, Sistema and Fonterra. Industries including 3PL, Automotive, FMCG, eCommerce & Retail to name a few.

NATIONWIDE SUPPORT When you choose Dexion solutions for your business, you get more than just a product. You get Australia’s largest logistics supply network

MHD SUPPLY CHAIN providing equipment and expertise from 21 metro and regional locations. By being close to our valued customers, we are able to provide prompt service for a wide variety of requirements. Dexion’s supply centres have been operating for over two decades, which means we are able to use our industry knowledge and best practice experience to help our customers grow through smarter warehousing and productivity. Whether it’s a single operation or a larger organisation with multiple locations, Dexion is close at hand, providing genuine Dexion products, performing safety checks and collaborating on unique projects. All supply centres have local stockholdings which gives our customers fast access to products and eliminates unproductive downtime.

RACKING UP THE EXPERTISE No matter how big or small your project is, we have a team to help make it happen. In house designers, structural engineers, technicians and many more all form part of the Dexion family. Another important part of the

“

When you choose Dexion solutions for your business, you get more than just a product. You get Australia’s largest logistics supply network providing equipment and expertise from 21 metro and regional locations.

”

team are our Dexion approved rack inspectors - who examine your pallet racking structure and provide you with a written inspection report. A yearly pallet racking safety inspection is a mandatory requirement to meet the Australian Standard AS4084-2012.

THE SMART, TRUSTED CHOICE For more than 80 years, Dexion has led the way in providing new and cuttingedge solutions for our clients’ storage and logistics requirements. Our people and products continue to transform the landscape in realtime distribution, materials handling and warehousing, through a robust nationwide support network designed to put our expertise in close proximity to your operations. By doing so, Dexion is well placed to help streamline your operation, protect your investment and provide valuable peace of mind. For trusted supply, solutions and support, trust Dexion. ■ David Maycock is Head of Industrial and Shared Services, Australia at Dexion.

www.HighJump.com 800.328.3271

Rise Above Tomorrow’s Challenges, Today

IS YOUR 3PL WMS READY?

MHD MATERIALS HANDLING

FUTURE TECHNOLOGY TODAY MHD catches up with David Sultana, Director of Marketing for Asia Pacific at Crown Equipment to find out more about the recently launched ESR 1000 Series reach truck line.

he ESR 1000 series has been developed in Crown’s European headquarters in Germany. The trucks were first released to the European Market in November 2019 and following pre-launch trials with key logistics and warehousing customers in Germany they will now

The ESR 1000 models are available in an array of different reach heights.

44 | MHD MARCH 2020

be available in Australia. The new models are the first to use Crown’s Gena operating system. “The Gena operating system was designed as a step up from our Access 123 operating system, capable of controlling the critical functions of the truck as that system did successfully, but with more

functionality and a stronger emphasis on human interaction with the lift truck,” David Sultana, Director of Marketing for Asia Pacific at Crown Equipment says. Gena provides the ESR 1000 Series with advanced productivity, safety, personalisation and management features to bring operators a new and engaging experience. “It was conceived from the beginning to be intuitive, customisable and interactive and it delivers all vital data and information clearly and concisely with a 7-inch colour touchscreen in one of 25 selectable languages,” David says. Operators can also choose from a selection of widgets displaying key forklift functions csuch as operating time, steering angle, speed and battery charge. In addition, the Gena system integrates with Crown’s InfoLink fleet management system to provide reliable management data and a broad range of interactive graphical checklists, together with safety instructions. Having already launched in Europe, the feedback for this series has been very positive with one customer saying that the ESR 1000 Series is a reach truck that its operators have come to appreciate for its many innovative features, including Auto Height Select, Capacity Data Monitor and the brand new, intuitive Gena operator experience. ‘In our tests, this new generation of reach trucks has clearly shown what it can do,” JanPeter Wingert, Site Manager at Voigt Logistik in Germany says. The ESR 1000 models are available in an array of different reach heights and capacities, making them suitable for businesses using one or more reach trucks with lower demands on lift capacity and lift height, through to bigger fleets working in large-scale 24-hour warehouse operations with high demands on equipment.

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The new models are the first to use Crown’s Gena operating system. The ESR 1000 reach truck series offers new, optional intelligently-connected features that enable operators to work with skill and precision at any height without compromising productivity. “The Xpress Lower function allows faster working at height. This exclusive technology doubles the mast lowering speed to 1.1 m/s, enabling up to 21 per cent more overall productivity,” David says. In addition, the ESR 1000 boasts a number of safety and sustainability features included in its design. “We maintain our ongoing commitment to sustainability thanks to our ecologic philosophy, which applies to all products that we manufacture. Through every step of our product development, we consider the impact of our designs on people, our processes and the environment,” David says. The design engineers at Crown are always looking at new ways to design lift trucks with fewer components that have more end-of-life options while reducing energy consumption and

since 1989

improving safety, David says. “Products designed for a longlife benefit our customers and the environment by offering increased uptime, reduced need for repairs and replacement parts, less waste and lower emissions,” he says. For power savings, Crown offer the optional Regen Lower System on all capabilities of the ESR 1000. “When lowering, the weight of the fork carriage and load forces hydraulic oil back through the pump, driving the motor in reverse and generating power that is directed back to the battery. This can help to reduce electricity usage, costs and battery changes,” David explains. Crown’s additional focus on ergonomics continues with an adjustable seat, controls, armrest and display while an offset clearview mast provides a better view of the load wheels, forks and pallets. “Along with all of its innovative features, ESR 1000 is built with the quality, durability and reliability that Crown is famous for,” David says. ■

THe ESR 1000 trucks are built with quality, durability and reliability.

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Fax (02) 1168 MHD9386 MARCH 2020 | 45 www.jamiesonfoley.com.au

MHD SAFETY

WAYS TO REMEDIATE THE GROUND James O’Grady, Business Development Manager at Mainmark Ground Engineering offers advice on spotting signs of subsidence and ways to address them.

enewal and maintenance are crucial to ensure the efficient operation and longevity of supply chain management facilities such as warehouses, factories, delivery docks and busy transport hubs. The 24/7 nature of many facilities can also place huge strain on the facility’s foundations, particularly those that rely on large haulage vehicles such as port terminals and warehouse delivery docks. Smooth and efficient working environments are crucial to business operations that continuously receive and despatch goods and materials. If the ground beneath the facility becomes unstable, ground engineering solutions and technologies can help. Cracking or uneven concrete slabs in warehouse floors, driveways and delivery docks are often attributed to ground subsidence. Subsidence can occur when the soil beneath the slab compresses under pressure, or swells and contracts due to changes

Cracking in delivery docks is often attributed to ground subsidence.

46 | MHD MARCH 2020

in the ground’s moisture level. Left untreated, ground subsidence can render driveways unsafe, dockyards unusable, and destabilise machinery. Subsidence also compromises the safety of workers by creating trip and fall hazards, slippery surfaces due to water ponding, and unstable shelving, walkways, gantries, elevated work platforms and ladders. Mainmark Ground Engineering is an industry leader in ground engineering solutions for warehouse and transport logistics sites, having undertaken remediation work for major logistics facilities across Australia, New Zealand and the wider Asia Pacific region using solutions that can quickly arrest and resolve the underlying ground subsidence issues impacting a structure. With the ground engineering specialist’s innovative application methods and solutions, works can often be conducted unobtrusively and cost effectively, with minimal disruption to daily operations.

HOW TO IDENTIFY SUBSIDENCE The sooner subsidence is identified, the sooner remediation can begin. Re-levelling a structure or strengthening the ground beneath or around infrastructure can help to extend its lifespan. Signs of subsidence include: • Cracked or uneven floors; • sinking concrete slabs; • sloping floors; • un-level shelving; • o uter edges of concrete floor standing higher than the midline, also known as ‘dishing’. Transport hubs and delivery yards that rely on frequent and seamless heavy vehicle use can also, over time, experience undulation of the ground which can worsen due to voids that have formed beneath the foundations.

INJECTABLE GROUND SOLUTIONS VS TRADITIONAL UNDERPINNING Traditional underpinning methods such as concrete underpinning, piling and jet grouting all require extensive excavation around the structure which often requires operations to cease completely, sometimes taking weeks for the works to be completed. Mainmark has extensive experience in identifying and creating bespoke solutions to complex ground engineering issues, using noninvasive technologies for raising, re-levelling and re-supporting sunken structures on or in the ground including vast concrete floor and driveway areas within warehouse and logistics environments. Non-invasive technologies, such as Teretek® and JOG ComputerControlled Grouting, are advanced alternatives to more traditional

MHD SAFETY

Subsidence compromises the safety of workers by creating trip and fall hazards. and costly processes. Teretek® is a unique two-inone, engineered resin injection solution that delivers both ground improvement and re-levelling, whilst increasing ground bearing capacity and filling voids. JOG Computer-Controlled Grouting is a process of multi-point, cementitious levelling of large, complex structures by computer-controlled equipment. This precise solution is controlled to the millimetre

Mainmark can quickly arrest and resolve subsidence issues.

so there is no undue stress on any part of the structure as it is raised back to level.

“

Smooth and efficient working environments are crucial to business operations that continuously receive and despatch goods and materials.

”

MAINMARK SUCCESSFULLY CORRECTED SLAB DISHING AT A LARGE TRANSPORT YARD When a full-service wharf logistics business that operates round the clock, receiving and delivering large shipping containers for the Port of Brisbane, identified issues with its concrete hardstand, the business turned to Mainmark for help. The large concrete hardstand is used for loading, unloading and storing 20ft and 40ft containers, and functions as a traffic corridor for heavy vehicles. The concrete slabs were originally laid on compacted ground several years ago, but the area had since become affected by serious subsidence. The issue had been exacerbated by additional water ingress that had infiltrated the soil substrate beneath the slab. Settlement at the outer edges of the hardstand were dishing, causing water to pool in the centre, further compounding the problem. Mainmark was able to re-level the hardstand using JOG ComputerControlled Grouting, enabling a level correction without the use of hydraulic jacks or temporary lifting platforms. The process is extremely precise with the cementitious solution achieving a controlled, pinpoint result in a remarkably short timeframe, therefore minimising operational downtime. ■ MHD MARCH 2020 | 47

MHD TECHNOLOGY

PAIN POINTS MHD looks at the five common pain points distributors share and how software can help solve them.

any distributors experience a combination of warehouse management grief, communication breakdown, delayed workflow and employee resistance. Tim Plunkett, Senior Sales Manager at Oracle Netsuite ANZ and James Burt, an experienced CFO across a number of different verticals, share their knowledge and experience for solving common issues across distribution and warehousing.

EEPING TRACK OF STOCK K AND INVENTORY LEVELS

Tim: When I started in the industry 20 year ago, if I asked a distributor what they do, they would say they buy and sell stuff. Back then business was shifting from manual paper-based systems to accounting systems, a system to record and report – it was very transactional, very much about compliance. The focus was on incremental growth, to protect margins and reduce sales and admin expenses. We’ve moved a bit since then, but we still find a lot of business are working with systems that are 48 | MHD MARCH 2020

essentially architected from those times, being propped up with tools such as spreadsheets and custom reporting. In fact, we see so many key operational tasks sitting isolated in these tools, and what we know now, is that the landscape has changed. The key priority is often to bring the organisation together on one system, essentially an Enterprise Resource Planning (ERP), a unified platform, that not only eliminates the siloed and manual process, but brings the procurement, finance and sales together – which changes behaviour and drives collaboration and in turn better outcomes. James: In the previous business I was working in there were a multitude of legacy systems and spreadsheets which had become extraordinarily complex and error prone. An enormous amount of unproductive time was dedicated towards simply reconciling different sources of data. For example, we would capture customer information in no less than four different systems. No one was ever quite sure which set of data was the master copy.

I road mapped a solution to transform many of the processes and move to a unified system that worked across the different functional silos providing a single source of truth for the data. In addition, by adopting the best practice already set up by the system we were able to hugely simplify many of the business processes.

PRICING ERRORS AND LOSING MONEY

Tim: We often find pricing is sitting in spreadsheets (or in emails), I’m sure many can relate to a customer complaining about incorrect pricing. We also find that pricing and margins in spreadsheets often use the supplier cost, so any additional landed costs are not included. What an ERP provides, is the ability to proactively manage pricing, set strategies by products, such as: competitive or penetration pricing, cost, psychological or value-based pricing. if you don’t know margins at a product level, then it’s difficult to know which products to promote or which may need review. James: I have similar experience

MHD TECHNOLOGY with regards to misinformation around margins and pricing. Before our new system implementation our trade and list prices had been kept on a spreadsheet. There was often confusion as to who had the latest version. Again, having a single source of truth for the prices was a huge advantage as all the pricing on invoice was driven from this central source. This minimised errors. Another advantage was security. We were able to control the sales team you access to our custom prices by customer and product segment. This was helpful so that salespersons were not able to leave the business with potentially market sensitive data.

STOCK LEVELS AND DEMAND PLANNING

Tim: Getting the optimal inventory levels is a balancing act. Too little, and you wind up with stock outs and unhappy customers. Too much, and your carry costs and obsolete stock goes up. There is no bigger priority – the impact of getting it wrong can be significant. Demand planning is complex, you really need a 360 view of each item, you need to know min/max quantities, economic order quantities, you may need to leverage historic data and sales forecasts, and match that with what you already have and what you’ve already committed. Some of the challenges we often hear are stock outs and lost orders, unnecessary duplicate orders, overstocking to reduce lost orders, resulting in high levels of working capital tied up in stock – along with excessive storage costs. As well as complicated, time consuming manual process to continually check stock, often a result of errors amplified by manual picking – which increases the cost to transact and then there is unaccounted lost stock. Recently I met with a company that shared that last year, over the Christmas period, they lost about 10 per cent of their sales orders, with $2 million in sales in December alone, they lost $200k in revenue, and potentially lost customers. James: At my previous workplace. demand and supply planning was left to a couple of spreadsheets and really the whole process was in the head of one key employee. After implementing our new system, we were able to record all the key information, such as lead times, minimum order quantities etc in one place. Then the system was able to predict our demand plan based on history and from this it

“

Getting the optimal inventory levels is a balancing act. Too little, and you wind up with stock outs and unhappy customers. Too much, and your carry costs and obsolete stock goes up. There is no bigger priority – the impact of getting it wrong can be significant.

”

automatically suggested the necessary supply plan and work orders. Having this facilitated a reduction in our working capital by over 30 per cent without risking out of stocks. In addition, this whole process was much more robust and not reliant on the intuitive expertise of one employee.

REMOTE ACCESS TO INFORMATION

Tim: I think these days, it’s a given that you need to transact on mobile. We spend so much time out of the office. It’s important – and it’s on people minds – just the pace in which we operate, that ability to access and action task instantly – it’s very powerful. Firstly, your sales team, they are essentially the face of the company, and mobile devices can put the complete customer account record at their fingertips. A 360 degree of the customer, from their account details, order history, open orders, through to all communication, including calls, emails and events such as tasks allows them to check stock levels, pricing, negotiate and transact on the spot. From a manager perspective, it’s pretty powerful to have an instant view of your business, and what I find really excites, is that ability to benchmark, and start to move into the gamification of roles, which offers significant value to support and drive behaviour I know I’d be lost without it. James: I have spent my career in FMCG working closely with field sales teams. For them to have access to systems remotely and in real-time is invaluable. It is less than impressive if a salesperson visits a customer and is unaware of a conversation that customer may have

Some of the common challenges in logistics are stock outs and lost orders.

MHD MARCH 2020 | 49

MHD TECHNOLOGY

had with the customer service team at head office. However, if they are able to log on to the system shortly before they visit the customer then read the latest information from their customer relationship management system. In addition, they can see other useful information such as recent sales history. A great advantage of using NetSuite was that it could be accessed from any mobile device, iPad, Android etc. simply by using a web browser. By having a CRM, that was part of the same suite that the rest of the business was using, meant there was a single source of data and no annoying integrations to other systems.

REAL-TIME DATA

Tim: Often locations are separate companies or databases, which makes it impossible to see one view of inventory across all locations. So, the only way is to call and speak to sometimes multiple people to find and commit stock. That all takes time, and information is quickly out of date. An ERP will provide that one view,

Historically, organisations have kept pricing in spreadsheets. and can go further and build in rules, such as set where it’s appropriate to sell out of – might not make sense to ship from Western Australia to Victoria or there might be orders with allocated stock with a later delivery date, that can be re-allocated and covered by an incoming purchase order. James: In my last role we opened up two new locations from which we manufactured and distributed directly to the customer. Having everything set up on one platform meant it was really simple to start operating the

same processes remotely. Having the global view of inventory was very helpful. Furthermore, the functionality of the system allowed for seamless inter location demand and supply planning which helped inventory levels to be optimised and Out of Stocks to be minimised. ■

This is an edited version of the MHD Webinar Five common pain points distributors share. To download the webinar, visit: www. bit.ly/2U79MnJ.

There is a huge benefit to being able to access warehouse stock data remotely. 50 | MHD MARCH 2020

MHD Supply Chain

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MHD SUPPLY CHAIN

The supply chain needs to be able to keep up with continuing increased demand.

CRUCIAL SOLUTIONS FOR THE SUPPLY CHAIN

Pas Tomasiello, Senior Director of Integrated Systems at Dematic comments on the consumer demand trends that are now shaping the entire supply chain.

etail has come full circle from the days of getting milk delivered straight to your door. The introduction of corner stores and then later, massive malls housing hundreds of different retailers tempted consumers out of their homes, but with the growth of online shopping, consumers are now wanting more and more items home delivered again. This illustrates how consumers very quickly change what they want in terms of how they want to receive goods and the convenience of shopping. It is important that supply chain operators understand the changing demands of today’s consumers, and how to meet them now and in the future. Based on this understanding, they must have the right technology in place if they want to keep up in the competitive e-commerce industry. E-commerce sales have steadily increased, now making up approximately 7.25 per cent of total retail sales in 2019, according 52 | MHD MARCH 2020

to eMarketer’s InsideRetail Hong Kong Statista 2019 report. And this growth does not look to be slowing down anytime soon, so the supply chain must act now.

POWER SHIFT Consumers are becoming more and more demanding in terms of their expectations on a number of supply chain variables. Things like delivery (including free delivery and on time delivery), accuracy of order and ease of returns, are consumer expectations that are driving supply chain innovation. While decades ago, power sat with the supply chain in the sense that they were able to dictate when things would get delivered and for what set price, this has changed in the last few years and the power has shifted to the consumer. It’s driving innovation in supply chain and companies need to respond with greater flexibility and greater agility, as well as provide

a very definitive and competitive price, which is the challenge.

IMPROVED DELIVERY A KEY PRIORITY Along with saving money, increased convenience and product range, flexible delivery options are a key driver for online shopping, but also an area where retailers can make significant improvements, which is important when competitors continue to up their delivery game. Free delivery is currently a key priority for online shoppers and is today more important to consumers than next day delivery. However, speed of delivery is becoming increasingly more important. Consumer expectations are very high these days - they want fast delivery, but they also don’t want to have to pay high delivery or returns fee. As a result, on the business side of things, there are now a lot of different costs to account for in terms of making

MHD SUPPLY CHAIN sure consumer demands are met, but also that supply chains aren’t shortchanging themselves in terms of making costs too low. The supply chain needs to be able to keep up with continuing increased demand, because while the focus right now might be on providing free delivery, consumer demand can change quickly, and supply chain might next need to be able to deliver within just a few hours – something that is already expected in many parts of the United States and Europe. Having flexibility when it comes to delivery is going to be key moving forward.

THESE EXPECTATIONS ARE ALSO FILTERING TO B2B While the expectations of consumers are currently driving e-commerce supply chain innovation and change, these factors are also filtering right through the industry and making their way into general supply chain, such as wholesale and B2B thinking as well. Businesses are expecting similar service levels and delivery windows to what the end consumer is demanding, which is putting greater pressure on the supply chain. This shows that consumer trends are driving significant behavioural change across the supply chain in general and not just in e-commerce.

TRANSFORMING ORDER FULFILMENT WITH AUTOMATION Automation is not optional if supply chain businesses want to keep up with current increased demands through improved productivity, efficiency and delivery services. Automation is about return on investment (ROI) and it can help deal with two key variables. The first is to reduce the cost of distribution by reducing the reliance on labour and introducing productivity and efficiency improvements that ultimately translate to a reduced cost. The second is that automation drives efficiency so that the supply chain can improve delivery windows as well. And automation can also improve accuracy because it takes out human error. When looking at automation, however, it is vital that businesses are investing in technology that is flexible, scalable and modular, to ensure that the automation is able to adapt, grow, and change alongside increasing and changing consumer demand. To this end, businesses need to work with a technology partner who will enable them to deal with the changing landscape.

BE AN EARLY ADOPTER The early adopters are the ones that are going to benefit from the competitive advantages that

automation presents. And having those competitive advantages in today’s fast paced e-commerce environment is going to be highly beneficial. If businesses wait, they will find themselves left behind and they will eventually lose the consumer. Consumers remain loyal as long as the business continues to deliver what they expect but are also very quick to shift as soon as they are disappointed. Businesses need to capture customer loyalty early and this means getting the price right, getting the delivery window right, making the return easy, making sure the pick is accurate and that customers get exactly what they asked for. The threat of being left behind should be a real concern for many supply chain operators. There are a surprising number of businesses still running manual processes, who just can’t get over the inertia of needing to move and automate their supply chain. However, if businesses are slow to adopt, by the time they do, other businesses will already be onto the next thing and offering something even better. The supply chain cannot afford to wait when it comes to investing in flexible, scalable and modular automation solutions if they want to keep up with the fastmoving, ever increasing demands of the consumer. ■

Now is the time organisations to invest in flexible, scalable and modular automation, Pas says.

MHD MARCH 2020 | 53

MHD TECHNOLOGY

ELIMINATING MANUAL DATA ENTRY IN THE WAREHOUSE Since Cross Docks Australia implemented its warehouse management system 12 years ago, its inventory has skyrocketed in volume. Founder, Shan Manickam tells MHD how the company has achieved improved accuracy by eliminating manual data entry. Brittany Coles reports.

s the name of the company suggests, they are specialist providers of cross docking services. Founded in 2004, beginning with just 10,000 sqm of warehouse space, Cross Docks has since grown to manage 41,000 sqm across two primary sites and can process 2000 orders a day for more than 25 different clients. Shan Manickam, Founder of Cross Docks Australia, says providing pick and pack services to wholesalers and retailers has grown and evolved as the e-Commerce revolution continues to boom and the expectations from consumers for expedited shipping increases. In late 2008, Cross Docks implemented the Microlistics

Cross Docks has eliminiated the paper trail and manual handling of data.

54 | MHD MARCH 2020

Warehouse Management System (WMS). At the time the company was expanding into a new facility in Laverton and they needed a multiuser, multi-client and multi-site 3PL WMS with the flexibility to cater for a wide variety of customer requirements. The implementation had the immediate benefit of streamlining communication with clients, increasing productivity through elimination of manual data entry, and increasing accuracy through reduction in paper picking slips.

EFFECTIVE INTEGRATION Before utilising advanced WMS for operations, Shan says that Cross Docks were using manual processes

Shan Manickam is the Founder of Cross Docks Australia. in the warehouse and were relying on excel spreadsheets. Cross Docks first deployed an Automated Storage and Retrieval System from Kardex. Shan says that system was 100 per cent integrated with Microlistics WMS, allowing the company to evolve to meet the demand from the market. Shan credits the company’s investment in the Microlistics WMS. He says it is an important tool that gives its clients access to more data than ever before all at the touch of a button, from anywhere they have web access. “With Microlistics WMS we can offer our clients the most advanced systems of access wherever they happen to be, giving you unparalleled flexibility and efficiency,” Shan says. Each week, Cross Docks manages, moves or delivers over 10,000 different products on behalf of

MHD TECHNOLOGY

Birkenstock is one of Cross Dock’s biggest clients. leading retailers including Birkenstock, Trunki and Jo Mercer. Shan says the Microlistics WMS has integrated effectively with customer systems. “After the notorious Black Friday and Cyber Monday retail sales, we processed over 2000 orders that weekend. Every order went out the same day because the WMS has that efficiency,” Shan says. “Volume numbers went up by over 100 per cent, but we didn’t need 100 per cent extra labour because of our WMS.”

MEETING CUSTOMER REQUIREMENTS Cross Docks has relations with 25 different clients, which means they have 25 different requirements to fulfil. Across its Truganina and Laverton warehouse facilities, that are respectively located 20km west of Melbourne’s CBD, Cross Docks tailor logistic solutions to the specific needs of clients who require inventory management for homewares, footwear, apparel, toys and furniture. Shan says the flexibility in its WMS system is essential in generating rigid results in one environment. “Our WMS meets our customer needs because we can facilitate that next level of efficiency. It is pretty amazing,” Shan says. Using scanning technology together with

“

With Microlistics WMS we can offer our clients the most advanced systems of access wherever they happen to be, giving you unparalleled flexibility and efficiency.

”

system driven receipting and despatching, Cross Docks have eliminated the paper trail and manual handling of data. “This means errors are dramatically reduced and efficiency increased getting your goods to the shop floor or consumer quicker than ever before,” Shan says. “One of our major clients, Birkenstock, has an impressive loadout accuracy on despatch of 99.99 per cent,” “There are very similar levels of accuracy with our menswear client, Mr Simple, who stock Herschel Supply Co. backpacks. We scan every single backpack and every single item for a more thorough result,” Shan says. Shan says the principal feature is the functionality the WMS has for his company. “The WMS offers amazing flexibility including an array of different picking methodologies. We have configured a variety of these methods and the system selects the best one to suit the type of order,” Shan says.

AUTOMATED AND ACCURATE Cross Docks has made significant investments in technology to ensure they’re offering efficient and accurate services to its clients. Shan believes offering a complete and specialised unit pick and pack service has allowed quicker movement and MHD MARCH 2020 | 55

MHD TECHNOLOGY

The WMS offers the flexibility to adjust stock levels to reflect orders. improved services for its clients. “Our perpetual cycle counting method allows the picker to cycle count whilst already doing the job of picking,” Shan says. “Instead of counting stock every month, the whole warehouse is accounted for 24/7 as the picker counts every single day.” This has reduced the need for clients to have an annual stocktake. “It is a powerful part of our WMS, and it empowers the people who are doing the picking, because when the workers return to the same picking location next time, the stock is perfectly counted meaning inventory is more accurate.” Cross Docks has 25 software interfaces providing real-time access to clients through online portals and feeds that allow full transparency 24 hours a day. “Our clients are ensured absolute transparency through real-time online access to stock levels and distribution information,” Shan says. “At the touch of a button and without leaving the office, clients can access more data on its stock and order movement than ever before.” 56 | MHD MARCH 2020

The Microlistics WMS has allowed the flexibility to adjust stock levels to reflect orders information uploaded to the Cross Docks WMS and the client then has access to new stock levels and despatch information such as consignment numbers and freight costs. “We have the best interface with Birkenstock. At its head office in Clifton Hill, Melbourne they have an LCD screen that gives them a countdown system,” Shan says. “The screen shows them where we are up to for picking orders on the day and Interfaces live information back to them whenever we pick another order in our warehouse,” “The screen could show we’ve picked 2500 shoes today, it’s a very transparent environment because it’s real time information of accessing data that really is an effective interface.”

FUTURE ADVANCEMENTS Shan says he is optimistic the industry can move towards Application Programming Interface (API) as filebased transfers slowly become an outdated process.

“At Cross Docks we can do both, we understand file-based transfers are rock solid because it is simple and easy,” Shan says. He says Cross Docks has a strong relationship with Microlistics, based upon driving continuous improvements in the warehouse, both in terms of process and technological advancements. “We’re constantly working with them to make our WMS better. They’re focused on and dedicated to improving its system so together we get a better product that is proven to be efficient,” Shan says. Shan predicts warehouse management is moving towards a hands-free environment. “We’re looking at investing in finger scanners to take the strain off the workers wrists who are holding heavy scanners all day,” Shan says. Cross Docks is excited to invest in technology that will be crucial for its clients to be as competitive as possible in its markets and Shan says they’ll continue to expand the tools currently utilised through its WMS to continue to match physical stock with electronic data. ■

MHD Supply Chain

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MHD PROPERTY

READY TO INNOVATE Damon James, Founder and Managing Director of Q Design and Construct, reveals how his business managed to quadruple its turnover in five years.

QDC delivered Bridgestone’s facility in Western Australia.

ounded in late 2012, Damon James, Managing Director of Q Design and Construct, says the business started with humble beginnings. “In the beginning it was just one blank desk and a blank laptop, these now seem like distance memories,” he says. However, Damon found that the business experienced rapid growth from the offset, turning over $4 million within a six-month period in 2013, to having $47 million on the books throughout FY2020. Q Design and Construct (QDC) started in Western Australia and has now expanded into four states including New South Wales, South Australia and Victoria. The business currently

operates from two separate office bases, one in Perth and one in Melbourne. For Damon, a real point of difference at QDC is the expertise and professionalism of the team. “We sit down with our clients to work out what they want to achieve and develop designs that allow us to build as economically as possible. We work closely to collaborate with our chosen consultants, trades and suppliers to ensure we optimise across all facets of design and construction to deliver on time, on budget, and most importantly, safely,” he says. The implementation of QDC’s expansion east started over two years ago and the organisation is committed to expanding its

Damon says the shift in consumer demand is causing a change in the design of facilities.

58 | MHD MARCH 2020

Melbourne office and eastern seaboard presence. “We have had a huge amount of organic growth, and we’re working on more and more project opportunities in South Australia, New south Wales and Victoria, and plan to head north into Queensland, soon enough,” Damon says. Damon references the current consumer trend of fast delivery with regards to the changing landscape of the logistics property market. “A lot of growth and development in this area is coming from consumers wanting same-day delivery. You can see this in areas of Asia and the US, where they often have a major traffic issues, yet they can still make online order delivery in hours, let alone within the same day. I think we’re going to start to see that expectations here in our major cities,” he says. This shift in consumer demand is also contributing to a shift in the kinds of facilities organisations require. “We’re starting to see a requirement large-scale warehouse storage on the outskirts of town to hold stock, and then smaller satellite facilities closer to the populated areas in order to be able to meet the delivery expectations of consumers ,” Damon says. For this kind of site, Damon says QDC is ready to innovate. “We have the expertise and partnerships with professional consultants and trades to truly package and deliver innovative and cost-effective solutions for these kinds of businesses. We are ready

MHD PROPERTY to innovate in this space and we are excited to see how this will shape the future of warehousing,” he says. QDC has worked with a number of blue-chip clients, including Bridgestone, Qube Bulk, Qube Logistics, CBH, Landmark and Austal Ships, to really understand the operational requirements of all aspects of logistics, from bulk cartage, handling and storage, bulk liquids transport and storage, warehousing, dangerous goods, launching of large scale offshore ferries, automation of cargo handling and even the logistics behind moving giant mining tyres. “Our mantra is to be the ‘professional partner for the design and construct of industrial, logistical and port infrastructure. To date every one of QDC’s projects has been the design and construct of an industrial property or industrial assets. We’ve delivered over $170 million worth of projects in our eight-year history, and every project has been delivered on time and on budget, with no major injuries,” Damon says. One significant project, and one that QDC is very proud of was the Bridgestone Pilbara Mining Solutions Centre (PMSC). The facility is used to store, warehouse, repair, and even remotely monitor earth moving tyres, conveyors, hoses and the like, on what

QDC has worked with a number of blue-chip clients in Australia.

QDC continually seeks to challenge the status quo and innovate whenever possible.

they call a “Pit to Port” one stop shop. The location is strategically located to provide these services swiftly to their customers. “The Bridgestone team came to us with some vague sketches for what they were after. Our team then spent some time with Bridgestone to understand how they operate and how a purposebuilt facility could improve efficiency and cost-effectiveness. The kind of tires that needed to be stored in this facility are huge, reaching four and a half metres in diameter and weighing up to seven tonnes each. So, there

were some really unique challenges, tht we worked through with the client.” Damon says. QDC spent six weeks with Bridgestone touring facilities across the nation to really get to know how their operation worked and what would work best for them. “It truly was a design and construct project, and Bridgestone was absolutely wrapped with the final product, not only did QDC provide valuable input through the building design & construction process to cover their operations, but both parties collaboratively challenged each other to improve the operational and also building efficiencies – it was a true D&C project, with optimal results. Bridgestone even worked with us to model and forecast the ability for the facility to increase throughput in 40 years’ time, without any extension to the current footprint.” Damon says. Damon himself has extensive experience in the construction business, with more than 20 years across infrastructure, marine, resource, industrial and commercial building projects in Australia and the UK. His involvement in both major and smaller projects has given him the broader technical and commercial skills to successfully work within complex and dynamic environments. “We continually seek to challenge the status quo, we never rest on our laurels and are always seeking out new and innovative designs and methods to construct, to ultimately bring value to our clients,” Damon concludes. ■ MHD MARCH 2020 | 59

MHD PRODUCT SHOWCASE

PRODUCTS DOOSAN ROBOTICS | M1509 Sensitive and Safe Enhanced functional safety based on highly sensitive torque sensor Talented & Skillful Precise and versatile force control for remarkable performance Reliable & Innovative Leading-edge control algorithm upon a robust software platform Intuitive & Simple Ultra-intuitive usability like smart devices The Doosan M1509, with a payload of 15kg and reach of 90cm, is the ideal collaborative partner for material handling applications. With their remarkable torque sensing technology integrated into each joint, Doosan cobots are the optimal choice for quick and accurate materials handling applications whilst ensuring the safety of all collaborative operators.

CUBISCAN 325 Suitable for the largest range of irregular shapes. Measurement Range Length: 0.2 - 90.0 cm Width: 0.2 - 60.0 cm Height: 0.2 - 60.0 cm Weight capacity: 0.002 - 25.000 kg The Cubiscan 325 will supercharge your Warehouse Management System (WMS) with accurate SKU dimensional data. The Cubiscan 325 is the absolute top of the range Cubiscan model for the largest array of irregular shapes. A truly innovative dimensioning and weighing system designed to specifically measure and weigh tiny to large irregular-shaped items for distribution, packaging and warehousing applications. CONTACT DETAILS www.diverseco.com.au/

RK25 CipherLab’s RK25 series blends the functionality of touch computers with handheld terminals. Having 2 physical keypad options with large and easy-to-use buttons, your data entry is fast and accurate. Its high speed and smooth operation for any data-intensive workload come from its 1.45 GHz processor, 2 GB RAM and expandable Micro SD slot. The RK25’s versatile reader options of linear imager, 2D imager and mid-range 2D imager give you long distance barcode reading abilities. Built with 4G and fast roaming Wi-Fi, you can enjoy high speed communications from dependable transmission, video streaming to remote access of backend systems. Along with durable designs, you have the power to operate your way in the palm of your hand. • Android 7.0 operation system with GMS certification • 4” display with Corning Gorilla Glass 3 and multi-touch panel • 25-key and 28-key numeric keypad options with assignable keys • 4G/ LTE and IEEE 802.11 a/b/g/n/ac dual band • 1.4 GHz quad-core processor and 2 GB RAM/ 16 GB flash memory • IP65, 1.5 m drop resistance and 300 tumbles at 0.5 m • Reader options of linear imager, 2D imager and mid-range 2D imager • Complementary accessories and software for deployment and management 60 | MHD MARCH 2020

MHD PRODUCT SHOWCASE

RS31 CipherLab’s RS31 series provides users instant success with its smartphone-like user-friendliness. Built with the Android 7.0 operating system and GMS certification, users can adapt to its operation with minimal training and maximize productivity. This intuitive operation is coupled with the rugged IP67 protection. The RS31’s reliable WiFi connection and 4G/LTE communication gives your field operators the ultimate advantage. Efficient data collection under the unforgiving sunlight combined with the smooth touch-centric experience allows users to intuitively generate production. Having the RS31 series will instantly upgrade your ability to surf the smart slope of success. • Android 7.0 operating system with GMS certification • Lightweight design of 260 grams • Reliable IEEE 802.11 a/b/g/n and LTE communication • CCD, laser and 2D reader options to efficiently capture 1D and 2D barcodes • Support NFC applications such as peer to peer data communication and card emulation • Swappable battery to extend working hours for all-day operation • IP67 rating, 1.2 m drop resistance and 150 tumbles at 0.5 m CONTACT DETAILS www.cipherlab.com ausales@cipherlab.com +61 431 363 688

CROWN OFFERS THREE-YEAR WARRANTY ON PTH 50 SERIES PALLET TRUCKS Crown Equipment is now providing customers in the Asia Pacific region with one of the longest hand pallet truck warranties in the industry. The Crown PTH 50 Series pallet trucks sold in the Asia Pacific region will come with a three-year warranty covering pump assembly, frame handle, lift linkage and pushrod assemblies. The boost in warranty coverage comes at no additional cost to customers. The Crown PTH Series is available in widths of 450 to 685 millimetres and lengths of 795 to 1150 millimetres for different usages and compatibility with different pallet types. It is also available with a hot-dip galvanised finish for use in corrosive environments or warehouses with specific hygiene requirements. The three-year warranty is available to original owners on PTH 50 Series hand pallet trucks purchased through a Crown branch or dealer as well as the Crown online shop.

CROWN TSP SERIES Crown offers an extensive range of electric and internal combustion lift trucks including counterbalance models, power pallet trucks, stockpickers and very-narrow aisle lift trucks. The TSP Series turret forklift – which broke new ground when launched in 1988 and received several design awards – is on the opposite end of the Crown range to the PTH Series hand pallet truck when it comes to size. The TSP Series turret forklift’s high reach and narrow footprint allows you make the most of your storage space. With Crown’s exclusive MonoLift Mast, there is less twisting and swaying than with traditional dual upright masts. This means it can provide the stability needed for operators and loads up to six stories in the air, or all the way up to 17,145 mm high. With the TSP Series, users achieve up to a 41 per cent advantage in lift speed. Along with faster travel and quicker pivot and traverse speeds, you get total cycle performance. The regenerative lower system recaptures lost energy while larger batteries provide access to more power, fewer battery changes and longer shift life. Unmatched comfort, control and safety enable operators to perform with confidence, all shift long. Crown’s TSP Series turret forklift provides unmatched flexibility and comfort with the MoveControl seat. Its integrated controls and full adjustability support every operator move. Options for the TSP Series include wire or rail guidance systems for automated steering control in minimal width aisles, a triple telescopic mast for extreme lift heights and low collapsed heights, heated freezer cabin for a comfortable work environment in temperature extreme applications and narrow front rail for floor picking applications. For more information contact Crown on 1300 283 390 or email crowninfo@crown.com MHD MARCH 2020 | 61

MHD PROPERTY FOCUS

WEATHERING THE STORM A

Carl Knaggs and David Skerrett from Colliers International explore the economic resilience and growing importance of rail and intermodal.

s weather and climate patterns change and the veracity and frequency of weather and climatic events becomes more severe and prolonged, ensuring that communities have access to more robust and resilient freight and logistics infrastructure is becoming more important. Much like the resilience of regions in tropical areas, Governments and the private sector across the eastern seaboard need to ensure continued investment in new infrastructure. The rebuilding of existing freight infrastructure needs to be delivered in a way that ensures better adaptability and resilience to weather events to allow for the faster recovery of regions and to reduce the prolonged economic hit to local economies after a major event. The significant investment in rail infrastructure, particularly the Inland Rail project, as well as follow on investment in intermodal facilities, are two significant measures for improving distribution capabilities, freight efficiencies and reducing supply chain costs. Appropriate additional investment may also assist regions to be better prepared for major climatic events and to recover more quickly. This article explores the current Inland Rail project along the East Coast of Australia and the rise of intermodal facilities and how investment in infrastructure development plays a significant part in building the economic resilience of regions affected by natural disasters.

INLAND RAIL Comprising 13 individual projects and spanning more than 1,700 km across Victoria, New South Wales and Queensland, Inland Rail is the largest freight rail infrastructure project 62 | MHD MARCH 2020

Carl Knaggs, National Director at Colliers International.

in Australia. Construction of Inland Rail commenced in late 2018 and it is expected to be fully operational sometime in 2025. The impact of Inland Rail will be far reaching, and it is expected to generate significant investment into regional Australia. Around two thirds of Australia’s export earnings come from these regional industries including agriculture, tourism, retail services and manufacturing. Inland Rail will improve the volume, efficiency and the cost of transporting those products and services to capital cities and global markets, particularly for long haul bulk commodities. Inland Rail will also impact distribution structures such as the spatial layout of the freight transport and storage system used to move goods between production and consumption locations. Decisionmaking on distribution structures, including DC locations will influence logistical costs and service levels along the supply chain. Logistical costs include transport costs, inventory costs and warehousing costs (handling, storage). The trade-off between logistical cost categories will influence the location and optimal number of DCs and determine how the potential relocation of these facilities

David Skerett, Director - Strategic Advisory at Colliers International.

may benefit from co-location with Inland Rail. The recent bushfires and severe weather events have shown that some climatic change events can extend beyond regional and even state boundaries and that there is a need for businesses to be able to adapt more readily to weather uncertainties through an integrated and connected freight and logistics network becomes even more important in reducing the economic recovery time. Intermodal Facilities Major rail investment has seen the rise of new intermodal facilities (in addition to the expansion of existing intermodal facilities) which act as the freight doors to unlock much of the operational benefit of major rail investment. Broadly defined as any site or facility along a supply chain that contributes to the transfer of goods from one mode of transport to another, intermodal facilities are the most common form of infrastructure transferring goods from road to rail, or rail to port. However, intermodal facilities or hubs are increasingly providing wider functions including storage, packing, distribution and value-added services. Some intermodal facilities may also provide multi-modal

MHD PROPERTY FOCUS options (more than two freight options) at a single location. Many regional centres along the eastern seaboard, including those that have a strong or developing agricultural, manufacturing or processing focus, are likely to benefit greatly from the development of regional intermodal facilities. Benefits will be derived from an improvement in regional supply chains, assisting producers, processors and manufacturers gaining better access and reduced freight costs to deliver products to key markets. For example, in the case of a road-to-rail intermodal facility, this may allow for bulk goods and containerised freight to be loaded in-situ and rail freighted directly to major ports, reducing road freight costs and potential double handling. In addition, investment in regional intermodal facilities may also have significant flow on benefits to the broader economy and Governments. These benefits may include, increases in regional employment, a reduction in heavy vehicle demand on intra and interstate road networks (reducing maintenance costs), a reduced risk of road-based fatalities

“

Much like the resilience of regions in tropical areas, Governments and the private sector across the eastern seaboard need to ensure continued investment in new infrastructure.

”

(by taking freight off roads) and potential environmental benefits by reducing emissions. In times of natural disaster, and post disaster events, bringing transport and logistics infrastructure back online becomes even more critical to ensure that emergency supplies can be distributed to where they are needed most and allows goods to be moved via different modes of transport to assist with the recovery efforts. Colliers considers that continued and more concentrated investment in rail, from Federal and State Governments, and the development of intermodal facilities as the gateways to this significant infrastructure is likely to have far reaching benefits across a number of sectors within the Australian economy. If this investment is delivered correctly it may also assist in making Australia more resilient economically, to the impacts of natural disasters and help affected regions get back on their feet quicker. Carl Knaggs is National Director at Colliers International and David Skerrett is Director – Strategic Advisory at Colliers International. ■

Many regional centres will benefit greatly from intermodal facilities.

MHD MARCH 2020 | 63

MHD NEWS FROM SCLAA

CHALLENGING THE STATUS QUO IN LIGHT OF THE CORONAVIRUS OUTBREAK Y

MATTHEW WRAGG SCLAA CHAIRMAN

64 | MHD MARCH 2020

ou know the facts, the Coronavirus was first discovered in Wuhan, Hubei Province, China. It has so far as of writing this, claimed 550 lives, through 28,000 cases involving the young and now a newborn baby. Chinese authorities shut down Wuhan on the 23rd of January at 548 cases of the virus and it has since infected a further 24,511 people. When it reached a death toll of 300 people, it claimed its first life outside of China, it is still spreading. The Australian Government has declared it a ‘crisis’ and has instructed the Australian defence forces to source locations for overflow, to further support the work on Christmas Island, now housing over 200 Australian’s in quarantine. A cruise ship, the Diamond Princess, is now situated in Japanese waters, off the coast of Yokohama in quarantine as Japanese officials try to curb the outbreak with 10 people on board found to be stricken with the Coronavirus. A further 273 people on board were tested, of which 31 tests came back positive and another 10 people have subsequently been found with the virus, none of whom showed major signs of infection. Separately, checks are now underway with a second ship with 1800 people on board, after 30 staff had reported feeling unwell, with fever-type symptoms. The virus is infiltrating our global society faster than it can cope and without necessarily being noticed before it is too late. People are travelling globally, including to and from areas that are being infected. It’s easy to sympathise with the Chinese government and any other group of people affected by this virus, it is crippling their economy and it seems to be that the virus has a long way to go yet. Shops, production lines, petrol stations and even taxis are not operating in Wuhan. Getting out of the city on a mercy flight is one thing, a relief to

some if you can make it. People have reported that getting to the airport to take advantage of a mercy flight was near impossible, as there is simply ‘no services at all’. This is a very similar outbreak to the SARS outbreak, all over again. Simply called nCov, the Coronavirus has a current mortality rate of about 2 per cent less than SARS (9% Mortality), but experts warn that initial numbers do not always indicate the true potential of the virus, except to say that it is definitely more infections that the Flu. Those same experts also predict that the current true rate of infection stands at roughly 75,000 (Courtesy: WHO). But in terms of comparison, what you may not have heard about is the MERS-Cov virus, another known Coronavirus that has affected 2,499 people with a mortality rate of a staggering 34 per cent. The Cov strains are here and we will see more, not to mention live through this epidemic which is here to stay for some time yet.

WHAT MUST WE BE MINDFUL OF? In Australia, as a PCBU, you have a duty to your staff. If someone is suspected of having a fever, even though the infection rate here in Australia is very low currently, you should send them home so they can see their local doctor. You are always within your right to ask for clearance, before your employee is allowed back into your workforce, just to be on the safer side of sorry. In 2003 during the outbreak and aftermath of the SARS outbreak, with just 8000+/cases being recorded, it was deemed by global economists it cost our global economy roughly $40B and cost the Chinese Government roughly 0.8 percentage point of GDP growth. Economists have already started cutting their growth forecasts for China in 2020, but how much more will it cost? The Apple Factory in the Chinese Province of Henan has been shut since the 4th of

Feb and it is not known when the factory will re-open and resume operations to ship the world’s most popular handheld device. “Since the top provinces in terms of infections include Zhejiang, Guangdong and Henan, which are so important for tech manufacturing, there obviously is a big problem,” said Don Yew, an analyst at Morningstar in Singapore. “This episode is going to make it even clearer to Apple that there is overconcentration in China and they may want to address that.” If the Coronavirus doesn’t halt production causing a Chinese meltdown, the movement of large scale operations to diversify risk, most certainly will. With such a heavy reliance on production networks within China, any major shift in production operations will most certainly hamper the country’s GDP output both in the short and long term. The shutdown also means that Apple may have to delay its new iPhone launch to a later date. A cost to the organisation in terms of delay and migrating its marketing campaigns. Could this occur in the next ten years? It’s a real question, which poses a significant risk. “This may become the straw that breaks the camel’s back,” said Nick Vyas, an expert on global supply chain management at the University of Southern California Marshall School of Business. “Since it is China and lacks transparency, there is added uncertainty and fear. Given how we have streamlined things and reduced inventory and grown more globally intertwined, this produces end-to-end disruption. This outbreak will force them to factor the cost of failure into their calculation and might well strengthen the case for more onshore or near-shore operations,” Nick Vyas, added. Putting the products we buy off a shelf aside for a moment, the world’s Global tourism is being effected, by Airlines cutting flights to and from China, under instruction by their respective governments. Combine that in Australia with the fires and you have a perfect storm for places like Kangaroo Island in South Australia, Gippsland in Victoria and the Barossa in New South Wales. Our onshore tourism is taking a hit on profit and growth already, not to mention the fallout from a global catastrophe like the one we are seeing in China, due to the Coronavirus. But most importantly, we need to turn our attention to our own personal lives. In 2019 Jeremy Thorpe, chief economist from PriceWaterhouseCoopers released a report that outlined the dramatic effects of Australia’s economy if China’s economy

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Clearly, there are benefits to working with China, that will not end in our lifetime. But it is also clear that the status quo cannot continue, as the risk of losing market share in a global economy is real and affects everyone.

”

suffered hard landing. The ‘effects’ were deadly. It suggested that with a GDP reduction in China of just 3-5 percentage points, Australia would suffer immensely. Considering that SARS with 8,000 people effected, reduced China’s economy by 0.8 percentage points, it is easy to join the dots and consider that the current nCov virus (Coronavirus), could, in fact, generate this outcome for China’s economic growth. The modelling showed that a decrease in China’s GDP overnight by 3-5 percentage points could have ramifications in Australia to the magnitude of 140 Billion dollars (7 per cent) and 550,000 job losses. The Centre of Independent Studies warned last year that the heavy reliance of some universities on fees from overseas students, especially those from China, was a financial risk to the government and taxpayers. This is significantly alarming as Universities are already seeing a demise in students, due to the shutdown of international airline travel to and from China. The bad news doesn’t end there. They buy our products as well. According to DFAT, China imports 30.6 per cent of Australian exports. If the global ramifications suggest that China will suffer from the outbreak itself and then from a shift in risk mitigation, by the very organisations who have helped build China’s economy in the first place. Our own Australian reliance on Chinese trade is in grave danger. Its hunger for our minerals, resources and education services is worth $123.3 billion to Australia, each year. Just 10 per cent of that number would hold significant consequence. Our next major trading partner is Japan, who consumes about 12.7 per cent of our exports or $51.1 billion, and who currently have a stranded ship off its shores holding passengers in quarantine. The future is unknown, and the ramifications and risk are seemingly extreme. What happens next is dependent on how we as humans react and take seriously the risk that presents itself, right now and spreading. What is assured, is that the way in which major production companies handle their risk profile moving forward. Clearly, there are benefits to working with China, that will not end in our lifetime. But it is also clear that the status quo cannot continue, as the risk of losing market share in a global economy is real and affects everyone; Apple, BHP, Airbus and even Qantas. While Investors want returns, the Coronavirus will shift our global supply chain. n MHD MARCH 2020 | 65

MHD FROM ALC

The transport freight sector needs to undertake a greater effort to attract a younger workforce.

URGENT ACTION NEEDED ON INDUSTRY SKILLS

he ageing of Australia’s workforce is a whole-of-economy challenge, but it is particularly acute in the freight transport sector, where the average age of a worker is now 45 years – over four years older than the average workforce age. This means that the transport and logistics workforce is ageing 1.3 times faster than the national rate. If not addressed, looming workforce shortages will lead to higher costs in the freight transport sector – and these will ultimately be reflected in higher prices paid for goods by consumers and businesses. The Transport and Logistics Industry Reference Committee Skills Forecast 2019, published by Australian Industry Standards, makes for sobering reading when it notes that more than 80 per cent of employers in the sector have experienced a skills shortage in the past 12 months. The shortages are at their most acute for drivers, warehouse personnel, educators/trainers and supervisors and managers – and the top two factors identified as the underlying cause were the ageing for the workforce, and a poor industry image that creates an impression the sector is an unattractive place to work.

66 | MHD MARCH 2020

Clearly, the industry needs to undertake a far greater effort to attract younger workers to its ranks. But it is a mistake to think this will simply happen of its own accord. As the evidence above makes clear, it is not currently seen as an attractive career choice, particularly for school leavers. There is ample research available which indicates the millennial generation of workers is more mobile and more likely to change jobs and industries than any of their forebears. A 2016 survey undertaken by Gallup noted that 21 per cent of millennials had left their job to do something else within the preceding 12 months – a figure three times higher than that for non-millennials. More strikingly, the same research reported that six in ten millennials say they are open to new job opportunities outside their current organisation – again, far higher than figures reported for other cohorts. On the face of it, this should be positive news for the freight transport sector. However, the fact that younger workers are willing to take a look at other industries will only be of benefit if they like what they see. The unfortunate reality is that the freight transport sector suffers from a continuing perception problem around

The transport and logistics workforce is ageing 1.3 times faster than the national rate. its ability to welcome female participants to its workforce, as well as those from diverse cultural backgrounds. There is some justification in that perception. As the Transport and Logistics Industry Reference Committee Skills Forecast 2019 notes, although the sector’s workforce has grown by around 28 per cent over the decade, the ratio of male to female workers in the industry has remained largely unchanged for three decades. This is a considerable barrier to the attraction and retention of younger workers, who make their career choices (at least in part) on an organisation’s commitment to gender equity and diversity. As well as dealing with diversity issues,

MHD FROM ALC the sector’s workforce must also address the fact that the increasing influence of technology in the operation of heavy vehicles will demand a broader range of skills than has been the case previously. Although these efforts must be industryled, there is scope for governments to play a greater role in making certain the transport sector’s workforce is prepared for a changing world. Many industry participants continue to note that the transport sector has not received appropriate levels of attention when it comes to skills and training support, especially in comparison to the hospitality, retail and human services sectors. This has profound implications for an industry that will increasingly find itself reshaped by automation, the deployment of autonomous vehicle technology, data driven decision-making and consumers who expect far greater visibility and transparency about freight movement. In short, digital literacy will be an essential attribute for logistics professionals going forward. Our industry needs this to be widely understood by policy makers and by prospective industry participants alike. If there is a perception that we are running analogue operations in a digital world, the skills shortages the industry is already experiencing will be compounded. As part of the National Freight and Supply Chain Strategy, the Commonwealth Government has undertaken to develop a new Transport Sector Skills Strategy, in partnership with industry. In its pre-Budget submission to the

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If not addressed, looming workforce shortages will lead to higher costs in the freight transport sector – and these will ultimately be reflected in higher prices paid for goods by consumers and businesses.

”

Federal Government, ALC has emphasised that the development of this Strategy must take particular account of workforce shortages being experienced by the freight transport sector, and that the Federal Government must prioritise an increase in training opportunities available to those wishing to enter its workforce. There is also a role for the Federal Government in working with industry to enhance our social license and supporting recognition of the fundamental importance of our industry. This includes supporting education and awareness campaigns that combat stereotypes about the nature of the industry, and which prioritise the recruitment of new workforce participants from diverse backgrounds. ALC has also called on the Federal Government to place a greater emphasis on the importance of enhanced mental health outcomes amongst industry participants. Industry led programs such as Healthy Heads in Trucks and Sheds (the development of which is being led by Woolworths) exemplify a proactive approach in this area. ALC has recommended that governments should provide greater levels of recognition and support to such industryled initiatives where they exist. Attracting a younger more diverse workforce for our freight transport sector will require a different approach to engaging potential recruits. We must combat stereotypes about the industry, highlighting the impact technology and innovation are having, and align these with the skills and ambitions of our future workforce. ■

Six in ten millenials say they are open to new job opportunities.

MHD MARCH 2020 | 67

MHD FROM ASCI SPONSORED BY

THE STATE OF SUPPLY CHAIN MANAGEMENT

he State of Supply Chain Management report measures the current status of Australian enterprise supply chains.

The results of the recent ASCI survey have been released.

68 | MHD MARCH 2020

In partnership with UTS Business School, it provides an in-depth analysis of the situation of the supply chain industry in Australia as a result of the quantitative analysis carried out on the basis of survey responses from ASCI Members. Year on year, this report aims to demonstrate the role of supply chain within the organisational structure and the overall business operations for organisations across the country. In the 21st century companies don’t compete, supply chains compete. The report provides an understanding of the maturity across eight components of supply chain management: Collaboration, Technology and Automation, Integration, Compliance and Regulation, Logistics and Distribution, Risk Management, Sustainability and Procurement. Currently, a paradigm shift is

being observed where company leaders are attentive towards the improvement of supply chain and are employing innovative strategic decisions for overall supply chain efficiencies and better end-toend experiences. Now is the time to elevate supply chain management as a profession in its own right. As the not for profit organisation positioning as the Professional Accreditation Body for Supply Chain Management in Australia, ASCI is preparing the framework for a Professional Accreditation Scheme for the profession. Supporting this Scheme is a Continuous Professional Development and Educational Program including globally recognised certifications and short courses. ■ Hover your camera over the QR code to download the report for free

JOIN OUR COMMUNITY A

SCI Membership programs enhance the Professional Accreditation Scheme by making pathways accessible via free networking and interactive learning experiences, including: • ASCI Leadership Series • ASCI Leadership Challenge • ASCI Round Tables Series • ASCI Networking Breakfast Series • ASCI Site Visit Series • ASCI Lunchtime Webinar Series ASCI runs an annual Awards Program, celebrating excellence in supply chain management and an annual conference - ASCI2020 - to be held 15-17 September 2020 in Western Sydney. ASCI Member programs also include valuable resources: • T he State of Supply Chain Management • ASCI Lounge Podcast Channel • M ember-only Groups: LinkedIn, Facebook • A SCI Supply Chain Careers White papers Corporate membership is a flexible and affordable program that allows for corporates to demonstrate commitment to their supply chain teams. Individual membership, global membership (ASCM joint) and student membership are also available. All memberships offer discounts

to training and education for individuals, including globally recognised certifications from our international partners APICS; Institute for Supply Management; and Demand Driven Institute. Corporate training is available for in-company, facilitator led workshops. For membership information contact the ASCI National Office today at enquiries@asci.org.au ■

ASCI National Office Level 7, 91 Phillip St Parramatta NSW 2150 PO Box 249 Parramatta NSW 2124 Ph: 1300 557 175 Email: enquiries@asci.org.au Web: www.asci.org.au

All ASCI membership offer discounts for training.

MHD MARCH 2020 | 69

MHD THE LAST WORD

VICTORIA SET TO TAKE THE LEAD ON REFORMS

reight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) representatives attended the Ports Industry Roundtable on 30 January 2020 hosted by the Victorian State Government’s Department of Transport. The meeting included a Ministerial Address by The Hon Melissa Horne MP, Minister for Ports and Freight; policy recommendations to inform the Port of Melbourne Port Pricing and Access Review; an update on actions supporting the delivery of the Victorian Government’s freight plan titled Delivering the Goods; and an interactive question and answer session allowing stakeholders to openly respond to key findings. FTA/APSA was encouraged by the Minister’s comments acknowledging that pricing is hurting our regional export cargo owners. Aligned to the above referenced documents, the government representatives extended an opportunity for direct engagement in the development of policy to deliver the Minister’s repeated stated goal of “growing Victoria’s exports”. Matters of most immediate impact to FTA / APSA members are summarised below:

PORT OF MELBOURNE TARIFF ADMINISTERED AGAINST SHIPPING LINES As outlined by Brendan Bourke, Chief Executive Officer Port of Melbourne (PoM), the Port Rail Transformation Project (PRTP) is being funded by an increase in the tariff on full import containers of $9.75 per TEU to take place “no earlier than 1 April 2020”. The Minister expressed her support of the PRTP which is aimed at reducing truck movements and improving productivity – please refer to the Victorian government statement 70 | MHD MARCH 2020

released yesterday titled Full Steam Ahead For On-Dock Rail. The announcement of the PRTP coincides with the PoM release of Our Plan for Rail 2020 (as a core component of the Rail Access Strategy submitted to the State in 2019) and complements the PoM long term growth objectives as outlined in their 2050 Port Development Strategy.

for setting of standards; “pricing transparency”; improvements to landside access and performance; a phased approach to monitoring supply chain costs (including consideration of the findings of the current ACCC review of Part X of the Competition and Consumer Act 2010); and the potential to progress to mandatory standards through regulation.

COMMENTARY

• TA / APSA see significant merit in the PRTP in driving efficiency in the rail supply chain; • D uring the PoM consultation process, FTA / APSA raised concerns about the cross-subsidisation fee model with obvious ‘winners’ and ‘losers’ i.e imports cross-subsidising exports (which are exempt of any increase); all road users cross-subsidising rail users; and the fact that initial benefits associated with the location of the on-dock rail will significantly benefit some stevedore operations over other • R ail access is still a key issue for shippers. In particular, in metropolitan areas where rail is often not a viable option. This port development needs to be part of a cohesive rail strategy for Victoria that opens access to more shippers. • W hile a reduction in the fee structure is welcomed (now $9.75 per TEU as against the originally estimated cost of $15 per TEU), the FTA / APSA position to the PoM and Victorian Government remains that any fee increase must now be offset elsewhere to maintain the port’s competitiveness.

INFRASTRUCTURE SURCHARGES

• F TA / APSA sees merit in the introduction of measures to improve landside access and performance; • F TA / APSA representatives clearly articulated that failure to regulate will continue facilitation of a “new normal” • W hile some form of price monitoring may be beneficial in achieving “pricing transparency”, FTA / APSA put forward a position that market forces are best placed to determine a commercial outcome • S hipping line representatives responded by stating that eliminating the Infrastructure Surcharges would force costs back to the lines which in turn may result in increased freight rates • F TA / APSA sees a need for immediate policy and regulatory invention and does not see a need to await outcomes of the ACCC review The Victorian government is to be commended for taking the brave lead in commissioning the review with other state and national regulators watching with keen interest. The spotlight is now clearly on Minister Horne to take the next step to truly champion the cause for cargo owners and to establish an environment to facilitate fair commercial practices.

Preliminary findings and policy recommendations to inform the Port of Melbourne Port Pricing and Access Review (review) included the need

Paul Zalai is the Director of Freight & Trade Alliance and Secretariat Australian Peak Shippers Association. ■

2 APRIL 2020 MELBOURNE

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