COVER STORY
ELEVATE APAC 2023
KÖrber’s first ever in-person Elevate conference is coming to Australia’s shores
Best-in-class narrow aisle material handling for 3PLs
TAKING SUPPLY CHAIN’S PULSE
MHD
Supply Chain Solutions
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ACKNOWLEDGEMENT
MHD Supply Chain Solutions magazine is recognised by the Australian Supply Chain Institute, the Chartered Institute of Logistics and Transport Australia, the Supply Chain and Logistics Association of Australia and the Singapore Logistics and Supply Chain Management Society.
ELEVATING OUR PERFORMANCE
The new issue of MHD Supply Chain Solutions is all about performance – and how to elevate it.
What could be better than our March cover story focusing on the Körber Supply Chain Software’s Elevate APAC 2023 – scheduled for May? The first in-person Elevate APAC Körber has run – following its successful pandemic virtual conference in 2021 – will thematically focus on the key pain points and challenges facing the supply chain industry in 2023 and beyond.
With businesses holding more inventory in their warehouses and DCs than ever and industrial vacany rates at an all-time low, it’s essential that business owners optimise storage space and throughput in their facilities to fit more product. In this issue Greg Phillips, National Sales Manager at Bowen Storage, explains what range of affordable nonautomated, semi-automated and fully-automated smart solutions the family-owned company has to offer.
In Prological’s monthly ‘Logical Outlook’ column, Peter Jones, Managing Director of Prological, discusses the results of Prological’s new survey, which research helps us understand industry sentiment on a variety of different issues. As Peter notes in the article, overwhelmingly there is a concern about supply chain talent scarcity – in part caused by the COVID border closures ceasing skilled-migrant intake. Be sure to read the full piece and Prological’s new white paper for all the key insights.
But what can we do now? The answer might be: technology. In this March issue we also interview 3PL BrandLink on its use of Combilift narrow-aisle materials handling equipment to get the most out of its footprint – and why it prefers Combilift to supply its MHE needs.
Happy reading. See you next month.
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.
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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.
Edward Cranswick Editor edward.cranswick@primecreative.com.auAUSTRALIA’S LEADING FORKLIFT COMPANY
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ON THE COVER
MHD discusses the upcoming Körber Elevate APAC 2023 conference – and the themes and subjects attendees can expect.
COVER
REGULAR
MATERIALS
INDUSTRIAL
41
Argon & Co, the global management consultancy that specialises in operations strategy and transformation, has announced that Intent Group has become Argon & Co in New Zealand.
It says Intent Group brings a strong team of experts, specialising in operational transformation, and manufacturing excellence across a broad range of industries, as well as deep knowledge of the local market.
“We have been working on the New Zealand integration for the last few months, our teams have led the way and are already in the mindset of one business,” Paul Eastwood, Managing Partner of the ANZ business, says.
“Intent Group has an incredible history and reputation in the local market and a legacy we are honoured to inherit. Together we begin a new
chapter with the goal to build a leading global management consultancy specialising in operations strategy and transformation.”
Intent Group’s integration reinforces existing capability in New Zealand (NZ) and enhances the ANZ business, with a combined team of more than 100 consultants across Sydney, Melbourne, and Auckland.
“Argon & Co NZ is now a reality, with a significant team focused on operational transformation,” Ian Walsh, Intent Group founder who has become Partner of the Argon & Co NZ business, says.
“Our purpose remains on making a difference for organisations of all sizes and locations throughout NZ and drive outstanding performance outcomes. With this integration, we have access not only to a greater team of experienced
INTENT GROUP BECOMES ARGON & CO COLLIERS’ OUTLOOK ON VACANCY RATES IN 2023
Colliers’ Gavin Bishop, Managing Director Industrial, tells MHD what occupiers and investors can expect as vacancy rates and rental prices continue to change.
Despite a pickup in supply, demand continued to outweigh the availability of stock for lease and vacancy rates continued to fall throughout the year. The national vacancy rate currently measures 0.6 per cent, which is down
from 2.7 per cent at the same point in 2021.
The supply and demand imbalance is expected to persist over the short to medium term, which will continue to drive rents higher. At a national level, prime rents are forecast to grow by eight to 10 per cent in 2023 which remains well above historical averages.
From an investment perspective, deals are still proceeding within the current environment, with the emergence of a two-tiered market with regard to pricing with sharper yields occurring for assets with shorter leave expiry profiles, providing the ability for investors to capture imminent rental growth upside.
Assets with a short WALE are expected to be aggressively pursued in 2023 as buoyant rental growth will result in investors seeking positive rental reversions. If economic
consultants but also the world’s best methodologies and digital capability.”
Chris Foord, Associate Partner of Argon & Co NZ, adds that it has been a lot of fun getting to know the Intent team over the last five months and engaging both existing and new clients together to support them deliver. “Together we are truly better.”
conditions change throughout 2023, it is expected the flight to quality theme will re-emerge and demand for core prime long WALE assets will be highly sought after.
Leasing demand is expected to continue to gravitate towards the precommitment market in 2023 as vacancy rates are expected to remain at close to all-time lows given lease renewal rates over 95 per cent.
On top of this, an increase in development-ready land availability in certain markets will continue to support precommitment and speculative lease activity, especially in Sydney where land availability will increase over the next two years as servicing and infrastructure works are completed in the Mamre Road Precinct.
Gavin Bishop, Colliers Managing Director, IndustrialOnline Groceries Fresh & Fast
For RedMart, Singapore’s largest online grocery retailer, order fulfilment speed, reliability, accuracy, and productivity are key in delivering on customer promises, especially during the pandemic, when online visitors increased 11-fold.
Optimising capabilities through leading-edge logistics automation from Dematic, RedMart’s online fulfilment centre features robotic shuttles, ergonomic pick stations, intelligent conveying, and high-rate despatch sortation – all across five temperature zones and managed by sophisticated software, making grocery fulfilment easy, accurate, efficient and safe.
Read more and see it in action at www.dematic.com/redmart
02 9486 5555
KÖRBER SUPPLY CHAIN AND BALYO FUTURE PROOFING SUPPLY CHAINS
As the supply chain environment rapidly evolves, automation should be the top agenda item for global logistics leaders. Körber Supply Chain has partnered with BALYO – technological leaders in the design and development of innovative robotic solutions for material handling forklifts – to help businesses future proof their supply chains.
A growing shortage of labour, an explosion in demand from online retailers and an increase in industrial property rises have combined to make the transportation-and-warehousing industry the sector with the thirdhighest automation potential.
To meet these challenges, Körber Supply Chain partnered with BALYO – a technological leader in the design and development of innovative robotic solutions for material handling forklifts. Working alongside BALYO, this partnership willprovide businesses worldwide with the latest technology in autonomous material handling equipment.
Future proof your supply chain with autonomous robots
Technology is the great enabler of more efficient supply chain operations. Companies need to address the gaps in their infrastructure and accelerate their migration to automation and artificial intelligence or risk being left behind.
By integrating BALYO’s range of robotic forklifts to overcome warehouse challenges associated with full pallets, bulk movements and heavy goods, your organisation will be future proof for years to come by being one step ahead in this rapidly changing world.
The result of adopting state-ofthe art technology is flexibility, agility, and scalability – allowing you to predictably increase throughput and productivity alongside company growth.
Robotic forklifts focused on real human needs
Today, we are seeing a shift in our warehouses. Robots are increasingly supporting businesses around the globe to face challenges in goods movements in the warehouse. As a leading integrator and developer of advanced forklift robots, BALYO’s vision is to let companies focus on humans through designing, installing, and operating simple and affordable technologies, systems, and services.
The robotic forklift range allows full autonomous pallet movement within warehouses. This is achieved thanks to a robust product range, embedded in a full user journey. The most basic robot offered is a tugger that is able to pull trailers of up to seven tonnes in weight. Scaling up from there, BALYO has a range of horizontal transport stackers and counterbalanced stackers. These
stackers are able to transport and place pallets of up to 1.6 tonnes up to four metres high.
One of the most popular products in the BALYO range is the automated reach truck. It manages Australian pallets (along with 30 other global pallet types), offering storage and retrieval solutions up to 11 metres high, while working in aisles as narrow as just three metres wide.
Perhaps the most coveted BALYO solution is the Very Narrow Aisle (VNA) robot. The VNA robot provides storage and retrieval solutions at the highest density and up to a height of 17 metres – the highest available solution in the world. Thanks to deep rooted partnerships with OEMs, BALYO is also uniquely positioned to flexibly build the base truck unit to meet a wide variety of aisle widths.
Robots built for efficiency and safety
The unique thing about BALYO solutions is that they begin with original equipment manufacturer (OEM) base trucks that are designed and produced at a huge scale. By adding autonomy to them, BALYO brings two distinct advantages:
• The ability to have easy service, spare parts, and maintenance ready to hand; a local partner network that brings a level of ease to clients.
• BALYO’s solutions enhance employee safety and efficiency; and their robotic lift trucks overcome labour shortages.
The modern artificial intelligencepowered robots are capable of acting as dependable assistants. They allow workers to be more efficient, while also being suited to hazardous environments. Rather than replacing employees, Körber and BALYO solutions enable them to carry out more valuable tasks while working alongside the robots.
A safer work setting is provided through smart safety and stop-andgo features. BALYO’s robots scan the environment in real time for obstructions and instruct the trucks or tow tractors to move or stop accordingly. The cutting-edge SLAM navigation allows for the robots to navigate in a changing environment without the need to add additional infrastructure such as reflectors or QR codes.
BALYO’s strict safety standards (based on ISO 3691-4) will bring customers the highest levels of reassurance, even when working in an environment surrounded with personnel. On top of that, the whole range of AGVs is dual mode, meaning it can be used both in automatic mode or in manual mode.
Robotic user journey with Körber and BALYO
Established 17 years ago, BALYO has offices in three continents and has deployed more than 1000 robots worldwide. Pascal Rialland, CEO of BALYO, believes the collaboration with Körber Supply Chain – who has assisted many companies to integrate automation in their warehouses – will develop an industry leading partner network that meets local and global needs for sector verticals and logistics customers.
Together, the Körber-BALYO mission is to become the long term local and global partner of supply chains around the world – by bringing innovation to warehousing, lowering the cost of pallet movements, and improving safety inside the facility.
“Körber’s expertise in warehousing and logistics, and their global presence, reinforces the complementary nature of the two companies,” Pascal says. He adds that the partnership with Körber Supply Chain is a major asset for deploying
BALYO’s complementary solutions to its customers.
The time for autonomous material handling is now
Every warehouse is different and features a particular set of unique processes to tackle different challenges. The expertise of both BALYO and Körber Supply Chain will take customers on a journey to help figure out how automation is feasible and applicable to unique operations. Multiple models are evaluated, and the best one – with the best return on investment –will be the key to taking each business to the next level.
The time for companies to assess their supply chains and embrace automation and robotics is now. Adopting technology today will provide significant improvements in productivity and efficiency, while reducing labour costs and improving customer satisfaction.
After the disruption our supply chains have witnessed over the last few years, we must now begin to recover. Recovery is the chance to reshape and enhance existing processes. Robots are an important improvement on how we used to work. They give us the opportunity to revolutionise our facilities and make them truly progressive and sustainable long into the future.
E2OPEN’S REPORT REVEALS IMPROVED CROSS OCEAN TRANSIT
E2open has released its Q4 2022 edition of its Ocean Shipping Index – a quarterly report that offers data-driven insights to better manage the movement of goods around the globe.
The connected supply chain SaaS platform also focuses on key lanes between Asia, North America, and Europe.
The e2open Ocean Shipping Index Q4 2022 Report shows that as of January 1, 2023, it takes a company an average of 63 days to deliver goods to truck or rail carriers after booking with an ocean
carrier and completing the cross-ocean journey, saying this is a dramatic eightday global average decline from the same quarter last year.
“While it is the most cost-effective transportation mode, ocean shipping has been in a constant sea of change,” Pawan Joshi, Executive Vice President, Products & Strategy, for e2open, says.
“A company’s constrained ability to predict the impact of external factors like shifting transit times, port congestion, and capacity fluctuations has complicated once-simple ocean shipping.”
Based on information from e2open’s
business network, encompassing 420,000 connected enterprises managing 13.5 billion transactions and tracking 71 million containers annually, the e2open Ocean Shipping Index provides a data-driven reference for shippers to understand how long it takes to move goods internationally as well as the factors that contribute to observed delays.
Companies can use this data to make informed decisions on when to book ocean freight.
“The latest edition of the index highlights ongoing changes and provides
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valuable insights on global shipping lane trends,” Pawan adds. “Incorporating these insights and trends at the moment of decision-making is key to unlocking immediate value and supporting resiliency across the end-to-end supply chain.”
The e2open Ocean Shipping Index is unique because it captures booking information at the start of the logistics timeline to provide a better view of total shipment time.
This report is one of several benchmark reports available from e2open to help companies navigate increasingly complex global supply chains.
MAB CORPORATION’S LAST ALLOTMENT SELLS
CBRE’s Daniel Eramo, Joe Brzezek, Jake George, and Corey LeFavi brokered the sale of MAB Corporation’s last remaining allotment in its Alliance Business Park development in Epping for $10.94 million.
The 11,950 sqm Comprehensive Development Zone land offers three street frontages to Edgards Road, O’Herns Road, and Trafalgar Road.
“Although the buyer depth for land decreased throughout the last quarter of 2022, there is still a flight to
quality for qualified and experienced groups seeking versatile sites within core areas, who are prepared to continue to pay strong rates,” Daniel says.
Alliance Business Park is a 96 ha $144 million industrial and commercial hub and national businesses Mainfreight and Gallagher occupy it.
“The sale of the last lot signifies a strong result and marks the successful completion of the sales campaign,” Michael Martin, MAB
General Manager Commercial and Industrial, says.
“The sale demonstrates there is still solid underlying demand for well-located industrial land in Melbourne’s North, with good exposure and access to transport infrastructure.”
The estate which was sold to a local industrial developer features a 3.6 ha basin including a 700m walking track with cyclist and pedestrian access to the Craigieburn Bypass Trail, notes CBRE.
VANDERLANDE’S ACP SOLUTION SUPPORTS EFFICIENCY AT LIDL KØGE
Lidl is part of the Schwarz Group, one of the world’s largest retail groups, which operates over 13,000 stores across the globe. Lidl’s distribution centre (DC) in Køge, Denmark, outperforms traditional order fulfilment methods by using Vanderlande’s state-of-the-art automated case picking (ACP) solution. At its heart, the ACP solution uses ADAPTO, the shuttle-based automated storage and retrieval system (AS/RS).
This results in:
• enhanced ergonomics and safety
• higher and faster pick accuracy
• increased scalability
• and the ability to supply all Danish Lidl stores.
Lidl’s end-to-end automated case picking (ACP) warehouse solution effectively handles both incoming and outgoing goods and guarantees storefriendly deliveries across multiple store formats.
The ACP system takes over the commissioning and provision of store pallets in an area of only 6,400 sqm saving considerable space. This automates the commissioning processes on site, decreases lead times and further improves the quality of the store pallets.
Vanderlande’s shuttle-based automated storage and retrieval system (AS/RS) with built-in sorting and sequencing capabilities – ADAPTO –
is implemented. Through this, the requirement for costly conveyance technology, sequencing buffers and buffer lines is minimised. ADAPTO
reduces the initial investment costs and delivers a more effective use of space in comparison to similar concepts.
Comprehensive analysis by
specialists from both companies on the site’s workstations means that they comply to the highest ergonomic standards.
WELCOME TO 2023: CONQUEST
Conquest Managing Director Michael Mathews offers his reflections on the year past and ahead –and the recovery opportunities and challenges in store.
We have been able to welcome a return to normality: connecting faceto-face with each other, regaining our freedom to travel, and experiencing a gradual lifting of operational restrictions. However, we have all had to react to a new set of challenges, with inflation, manufacturing/freight delays, and energy scarcity.
I’m proud that the team at Conquest has been able to show resilience and agility in rising to these challenges and provided new products and services that have met the ever-changing needs of our customers.
The foundation of what we do at Conquest will always be about genuinely caring for our customers. We are resolute in our belief that partnering with our customers means more than just providing a product or service. We have invested in our CARE program to ensure that your valuable feedback is heard and integrated into our business. Our pillars: freedom
of choice and reliability, ensure that what we do, and how we work, aligns with what’s important to you and your operation.
A key focus for 2022, was alleviating the pressure of global supply delays for our customers. Through the leveraging of our key supplier relationships in Europe and North America, we were able to boost local machine and spare parts inventory in each of our capital city warehouses to up to eight weeks of supply. This has seen delays incurred through manufacturing and freight, largely negated for our customers.
Our short-term hire fleet has seen rapid growth, commensurate with the ever-increasing demand for emergency cleaning solutions and the temporary augmentation of existing fleets. Conquest Hire now provides the largest range of industrial and commercial floor cleaning equipment in Australia.
An exciting development for us this year, was our expansion into the area of robotic cleaning. Automation will play an increasing role in how we operate efficiently in all our industries, and we are proud to offer an innovative product at the forefront of this technology. The
Michael Matthews, Conquest Managing DirectorAvidbot NEO 2.0 is the most intelligent autonomous product on the market, delivering an exceptional clean through real-time obstacle avoidance and dynamic path planning.
Looking forward to 2023, we have an exciting new range of products and initiatives in the pipeline to ensure we remain able to meet all your floor cleaning needs.
I want to send my sincere thanks for your continued support and best wishes for the year to come.
Michael Mathews is the Managing Director of Conquest.VINPAC INTERNATIONAL USING DEMATIC’S AGVS
Vinpac International, Australia’s largest contract bottler, has selected Dematic’s Automated Guided Vehicles (AGVs) to help boost productivity and efficiency at its South Australian facility.
Founded in 1975 to provide contract bottling services to customers in the Australian wine industry and beyond, Vinpac bottles more than 10 million nine-litre cases annually and distributes to more than 500 customers. It operates out
of the Barossa and McLaren vale wine regions in South Australia.
“We are absolutely thrilled to be making an investment in three AGVs for the future growth of our Angaston facility,” Andrew Holdback, Group Operations Manager at Vinpac International, says.
“The safety of our team is paramount, so the deployment of these AGVs will help to enhance the working environment for our valued team members and will deliver the
best level of service possible to our customers.”
The advanced, self-charging Dematic Counterbalance (CB) AGVs are designed to increase efficiency, productivity, accuracy, and safety in manufacturing and DCs, achieving this with high-precision laser guidance and the latest safety scanner technology, notes Dematic. AGVs increase productivity and reliability because they are capable of working 24/7 every day for the
year. This is in addition to improving efficiency and accuracy of operations, thereby minimising mistakes, and workplace accidents, which provides significant improvements in occupation health and safety standards.
“We are very excited to be working with Vinpac on this project,” Tony Raggio, General Manager for AGVs at Dematic, says.
“The Vinpac AGV system will transfer finished goods from production lines to conveyors and manage the empty pallet stacks to/from the palletisers and de-stackers.”
The AGVs are capable of lifting loads of up to 1500 kg to a height of four metres. They are powered by high-amp hour, maintenance-free batteries, and can drive themselves onto charging floorplates at times of inactivity to recharge as required.
FTA DIRECTOR ON INFLATION AND FREIGHT RATES
Sky News’ Business Weekend featured Anthony Scali, Managing Director at Nick Scali, outlining the significant cost savings able to be passed on to consumers with the lowering of international shipping freight rates.
While tempering this enthusiasm with a prediction of freight rate increases in the months ahead (refer to the below commentary), I had the opportunity in the same story to share concerns about other inflationary impacts in context of rapidly increasing Terminal Access Charges and ancillary fees paid to stevedores and empty container parks that exceed $600 million per annum.
Data compiled by Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) will be presented to the Federal Government as evidence of this claim.
FTA and APSA are escalating advocacy for regulation, as also recommended in the Productivity Commission’s inquiry of Australia’s Maritime Logistics System, to address this cost recovery model imposed on transport operators
(both road and rail) who have no ability to influence service or price.
After years of record high freight rates leading to multi-billion-dollar profits for foreign owned shipping lines, it is now a welcome relief for importers and exporters to see freight rates significantly reduce.
But how long will it last before we see the pendulum swing again in favour of the carriers?
We imagine that shipping lines will look to again take control of the situation within alliances to increase blank (cancelled) sailings by agreement. In a period of adverse economic times and a corresponding reduction in demand, this appears to be how major shipping lines are remaining confident that rates will not fall below costs.
If the contentious EU Consortia Block Exemption Regulation is renewed and at an Australian level, the Part X of the Competition and Consumer Act is retained for an extended period before its inevitable repeal, we can expect a bounce in spot rates in the months ahead.
Recent developments would suggest that shipping lines will fiercely protect their exemptions from competition law. Rather than jeopardise the continuation of broader Block Exemption privileges, we witnessed the stunning announcement of a major split in a global shipping line consortium. Perhaps this was a pre-emptive, and arguably pragmatic decision, noting that this alliance was named by the EU Commission as breaching the 30 per cent market share limit.
Importantly, the ongoing turbulent operating environment places an increased dependence on freight forwarders to provide contract cargo, which shipping lines generally prioritise for loading over spot rate cargo.
Continuity of professional logistics services also includes the ability to seamlessly move between shipping lines to achieve competitive rates, ascertain equipment availability, forecast capacity restraints, manage domestic transport requirements, as well as meeting cross border customs and biosecurity needs.
The advanced, self-charging Dematic Counterbalance (CB) AGVs are designed to increase efficiency, productivity, accuracy, and safety.GS1 AUSTRALIA DEVELOPS EDI FOR WOOLWORTHS
GS1 Australia is a long-time partner of Woolworths Group and works closely with its eBusiness Team. It partnered with MessageXchange and Colladium to develop an electric data interchange (EDI) certification and selftesting service.
Woolworths has a set of message implementation guidelines (MIGs) that define how suppliers should trade electronically with them via EDI.
These guidelines outline the document or message types to use, including purchase orders, purchase order responses, purchase order changes, advanced shipping notices and invoices, as well as when to use them, i.e., only use if supplying direct to store or if supplying to a DC, along with the structure and business rules of each message.
With more and more suppliers choosing EDI to trade with Woolworths electronically, onboarding suppliers to EDI with the existing resources and ensuring suppliers’ EDI documents
are built as per the MIGs presented a challenge to Woolworths’ eBusiness team.
“To support our suppliers, we would raise test purchase orders and send them to the suppliers,” Derong Yu, eBusiness Lead at Woolworths, says.
“The suppliers would need to send back messages, like a purchase order response or an invoice for validation. If the messages failed, we would check the message and provide specific feedback to the suppliers.
“The suppliers would then need to make changes on their end and retest it again – it involved a lot of backand-forth and could take weeks or even months to complete the end-to-end EDI accreditation testing.”
Woolworths was keen to adopt this. “We trust GS1, and we know they would partner with the right provider to get this solution delivered,” Yu says.
“We saw this as a way to enhance our suppliers’ EDI onboarding experience and bring real efficiencies to our EDI
accreditation process.”
The teams from each organisation worked together to determine a streamlined process for suppliers and design the EDI Certify solution accordingly.
This was based on the current EDI documents exchanged and business requirements working with Woolworths including numerous scenarios such as accepting, rejecting, or changing orders, fully or partially shipping orders, invoicing, and checking logistics labels.
The MessageXchange and Colladium teams configured the EDI Certify system to guide suppliers through the Woolworths EDI self-certification process, enabling suppliers to generate an order with supplier-specific details such as vendor number and products, as well as validate suppliers’ outgoing messages for Woolworth’s required scenarios with real-time feedback is a key feature.
Most importantly, the processes simulated real-life scenarios. Woolworths also added in other documentation, including labelling guidelines, so that suppliers have all the information they require, in context, and at the time that they need it.
“The EDI self-certification gives us the confidence that the suppliers are ready when it comes time for the endto-end EDI accreditation testing and onboarding to our live systems,” Yu says.
“We’ve seen the quality of EDI messages during the end-to-end testing is now much better and the EDI accreditation testing process is smooth.”
Once the issues are fixed, they can retest messages without relying on Woolworths’ eBusiness team.
With the EDI Certify service, suppliers are now able to generate EDI purchase orders based on the information they input, self-test their messages to Woolworths anytime to get all issues identified upfront.
Woolworths has seen huge efficiencies in its end-to-end testing process – what sometimes took weeks or months, now takes days.
National vacancy rate dips to record low 0.6%
Still the lowest of record Globally.
The national vacancy rate has further fallen since H1 2022 and now stands at a new record low of 0.6%, with the downward movement recorded for all major markets across Australia.
Scan the QR code to unlock the latest insights in CBRE’s Industrial & Logistics H2 2022 Vacancy Report.
FIND YOUR RHYTHM AT ELEVATE 2023
Having been hosted in the Americas for more than 10 years, Körber’s unmissable Elevate event is coming Down Under. Join Körber’s APAC team at the region’s first in-person Elevate in Melbourne. MHD gives an overview of Elevate APAC 2023 and why it's a must-attend for businesses wanting to stay ahead in innovation, optimise processes, and gain valuable insights to achieve new levels of success today – and into the future.
For the first time ever in Australia, Elevate APAC will take place in-person, building off the success of the virtual
After the success of Körber’s Elevate APAC virtual event in 2021, this year’s Elevate will be bigger and better and held in-person for the first time in Australia.
Held this year on 02-03 May in Melbourne, the agenda will be packed with Körber customer stories, product information, opportunities to network with peers, and meet with the Körber APAC and Global team,
and partners. Furthermore, Körber has exciting new content this year focused upon its newly acquired Order Management and Transportation Spend Optimisation solutions. Industry-leading experts will provide actionable insights for Supply Chain’s biggest and most important trends. There’ll be a deep dive into Körber’s suite of supply chain products and solutions, the
opportunity for attendees to see Körber products in action and learn about real-life transformation stories. Plus there’ll be specialty sessions hosted by Körber’s vast network of complementary supply chain technology partners.
"After 10 years of Elevate in the US, we are extremely excited to bring the first in-person Elevate to the APAC region," says Anthony
Beavis, Managing Director ANZ at Körber Supply Chain Software. "The two-day event will offer attendees a full schedule of product updates, industry insights and networking opportunities. It's the perfect opportunity, as an industry, to learn to grow together in one location."
If you are a Körber customer or someone looking to conquer supply chain complexity, you will not want to miss Elevate 2023.
ELEVATING PERSEPCTIVES
To enrich customer and industry knowledge around the challenges, complexities, and opportunities that face supply chain today, last year Körber launched Körber Perspectives – an integrated effort to deliver learnings, insights, stories, data, and solutions to help businesses.
Elevate APAC 2023 will build off the ongoing themes and learnings identified in Körber Perspectives – providing the opportunity to share perspectives face-to-face in Melbourne.
Some key challenges Elevate will address include:
• Heightened customer expectations around selection, quicker shipping,
and lower costs;
• Labour hiring and retention difficulties;
• Sustainability as a top-of-mind priority for consumers, businesses and governments, as manufacturing and supply chain become a major target of change;
• Facilities being pushed to their breaking points, seeking ways to quickly improve and adapt to rising expectations; and
• Technology continuing to provide supply chains with more data, but choosing siloed technology that doesn’t communicate with the entire supply chain network, leading to difficult decision making and disconnects between different sides of the business.
To help combat these issues, supply chains need to carefully plan and execute on technologies that help build a strong, end-to-end supply chain network that can help support growth and adapt to ever-changing market conditions.
Körber Perspectives aims to help businesses understand these complexities and provide information that could be key to addressing them in the future. Since the initiative began, Körber Perspectives has identified six key pillars of focus –around which Elevate APAC 2023 will be structured:
• End Customer Experience
• Labour Engagement
• Digitisation
• Facility Optimisation
• Sustainability
• Agility and Resilience
END CUSTOMER EXPERIENCE
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to the regularly scheduled inventory shipments. This means that warehouses need more information than ever before to ensure they can meet the needs of customers.
Elevate APAC 2023 will build off the ongoing themes and learnings identified in KÖrber Perspectives – providing the opportunity to share perspectives face-toface in Melbourne.A breakdown of Elevate attendees by profession. End Customer Experience is one of the key pillars of Elevate 2023.
The Challenge
Over the past 10 years, customers have developed a desire to have what they want, when they want it – even when the distribution centre holding that item is across the country. Last minute orders can put high stress on warehouses, as shipping windows and cut-off times become increasingly important.
The Opportunity
With these new expectations, many companies find themselves facing tough decisions. Do you hire more workers? Increase overtime? Or do you pass the cost on to the customer themselves? Choosing the right technology can help address these issues without putting an undue burden on the operation.
LABOUR ENGAGEMENT
Finding and retaining labour is one of the biggest challenges facing the supply chain today. Choosing the right technology to attract and support your workforce may be the solution.
to work more safely, enthusiastically, and productively. Introducing the right technology, in the right place, and connecting it with the workforce, can enable organisations to build the supply chains of the future.
DIGITISATION
Today’s supply chain is full of complexity – balancing customer expectations, company demands, and consistently changing markets. Knowing what is happening in your supply chain is key to staying ahead of the competition, which is why digitisation is so important to supply chain success.
The Challenge
To meet the complex demands of both the industry and today’s consumers, the need to optimise warehouse and DC facilities has become more than a competitive advantage – it is a business necessity. Gone are the days when large batches of the same product could be moved by a single forklift and loaded onto a truck for delivery within minutes, and operations needs to adapt.
The Opportunity
The Challenge
Supply chains are under increasing pressure to be smarter, more productive, and more efficient. Technology can help, but selecting the wrong technology – or multiple pieces of technology that don’t communicate – can actually make improvements more difficult to achieve.
The Opportunity
Technology is not designed to, and never will, replace human intervention. People will always be able to do things that robots cannot. However, there is currently a huge amount of latent potential to combine human skills with automated technology, allowing warehouses to stay competitive within the challenging environment that supply chains face today.
SUSTAINABILITY
The Challenge
Warehouses across the globe are struggling to find the staff they need to meet demand, especially as e-commerce continues to grow. Even when staff are found, it can be difficult to keep staff engaged and retain them amidst enticing offers from other companies looking to solve their labour shortages.
The Opportunity
Against these forces, technology offers a solution, unlocking new operational savings while supporting employees
Data is a valuable resource for any company to be able to gain insights, support planning, and make informed decisions. Selecting technology that integrates and provides powerful, easy-to-use and accessible data will elevate your supply chain.
FACILITY OPTIMISATION
Warehousing today looks wildly different from days past. Processes have changed, customer demands have heightened, and technology is being leveraged like never before. Getting the most out of your facility will be the key to keeping up- today and in the future.
Sustainability front-of-mind in today’s society and governments and consumers are coming to expect more from businesses. While emissions are the starting point for many operations, integrating sustainability fully into the supply chain will be key to managing expectations in the future.
The Challenge
The urgency of solving the climate crisis has never been higher, and people’s awareness of their impact on the planet is growing. Global forces are imposing more and more regulations on businesses to become more sustainable. But as the supply chain makes efforts to cut their CO2 emissions and carbon footprint, it also needs to keep demanding customers satisfied.
The Opportunity
Sustainability is more than the environmental impact as we know it. That’s why the supply chain must start taking a more holistic approach to their operations, both in and out of their warehouse. This will not only help operations meet increasing regulations, but also provide the chance to earn customer loyalty as a brand that aligns with their values.
AGILITY AND RESILIENCE
From natural disasters, to pandemics, to unexpected disruptions caused by blockages in ports or highways, there’s always something around the corner for today’s supply chain. Choosing the right technology can help mitigate the risk and prepare your operation for what comes next.
The Challenge
Supply chain operations are critical for any business, but they are susceptible to disruption from both operational and environmental factors. It’s crucial to build agility and resilience into your operation so you can overcome the unexpected when it arrives- and it will arrive.
The Opportunity
Agile supply chains are successful because they can adapt strategically. They are able to react to external trends and changing customer demands while navigating the challenges of today’s supply chain. This can be achieved through careful planning, robust but flexible processes, and investing in technology that can adapt with you.
DON’T MISS ELEVATE APAC 2023
With a successful 10-year history in America – and more recently in Europe – Elevate has established itself as a must-attend annual event for customers and partners. The 2023 event will feature keynote speakers, panel discussions, and networking opportunities that will focus on the latest industry trends, cutting-edge technologies and solutions to tackle pressing supply chain challenges. Find your Rhythm at APAC Elevate 2023 and solve supply chain complexity with industry experts. ■
Don’t miss your chance to register for Elevate APAC 2023. Use the accompanying QR to secure your ticket today.
After 10 years of Elevate in the US, we are extremely excited to bring the first in-person Elevate to the APAC region. The two-day event will offer attendees a full schedule of product updates, industry insights and networking opportunities. It's the perfect opportunity, as an industry, to learn to grow together in one location.Learn how to build Agility and Resilience at Elevate 2023.
TAKING THE PULSE
In a recent interview, Peter Jones, Managing Director of Prological, discussed the new Prological Supply Chain Pulse Check Survey 2023. The survey addresses five critical areas of concern for businesses, including supply chain uncertainty, sustainability, supply chain visibility, the economic outlook, and skills and recruitment. The survey questioned the importance of such issues to organisations and their businesses’ intentions to address them.
“The impact of recent supply chain induced business pain is driving the renewed focus of addressing the fail points,” Peter says.
One key takeaway from the survey is how concerned firms are with recruiting effective talent in this economic environment. “The current low unemployment rate has made it difficult for businesses to find new employees,” Peter says. “The ‘silly money’ that businesses were recently offering to attract employees during ‘The Great Resignation’ has largely stopped, while employees also seek better life balance. It appears workplace flexibility is the new currency to attract and keep staff.”
On the broader themes of supply chain and the 2023 economic outlook, Peter states that it is difficult for logisticians to draw emphatic conclusions on global macroeconomic factors. However, Peter notes that the apparent experts from banks and consulting firms, government, and superannuation funds are all saying the same thing about the economy – locally and globally: interest rates are rising, and the cost of living has increased. This has resulted in people modifying their spending and this is driving the survey’s result in relation to economic uncertainty.
The results of the survey showed only 28 per cent of businesses are considering reshoring manufacturing. Given the emphasis that was put on this theme in public discourse during the pandemic, is
Peter surprised by this result?
“Many Australian and New Zealand companies have been importers for a long time. Many are part of global conglomerates, making it quite difficult to suddenly decide (during a pandemic) to get into local manufacturing. Having said that, I was still surprised. I thought that with the government talking about supporting onshore manufacturing and the opportunities available, there might have been a higher percentage of businesses considering it. Maybe, the business cases regarding reshoring still didn’t add up, despite the desire, or that reshoring requires a long-term commitment to local manufacturing. A commitment that, while desirable, presented other risks, leading to strategies enabling the ‘riding out’ of this economic storm.”
On the sustainability front, companies are doubling down on their sustainability commitments. “Our governments have been slow to the mark in setting goals, clarity in legislation, or even minimum standards – notwithstanding recent positive changes. In contrast to 15 years of politicisation around decarbonising the economy, energy policy and investment into sustainable energy, businesses have taken a strong lead.”
According to Peter, some businesses
in Australia are well-advanced in their actions, plans and aspirations toward sustainability.
“We no longer see any brief from any client that does not have clear, high-bar sustainability goals set within the context of well-developed boardapproved ESG policy. This has become the norm.”
With respect to supply chain visibility, Peter notes he was “more heartened than surprised” by the results. “Some of the respondents come from the e-commerce businesses,” he explains. “Within e-commerce businesses, visibility has been a focus since the industry’s inception 30 years ago.”
However, he was surprised to see “less than one per cent acknowledging ‘little or no visibility’.” Peter’s daily experience is that “many B2C businesses provide little product availability or order-to-delivery-fulfilment visibility to their customers, mainly because they do not have the systems to do it. He notes that “a large proportion of businesses have as a high priority taking action to provide good quality, value adding, endto-end visibility across the supply chain.
“We believe some of the survey outcomes reflect how e-commerce businesses are now taking up a much bigger proportion of our economy. As
Prological has released findings from an inaugural survey, uncovering trends and future predictions from supply chain, property, and manufacturing experts across Australia and New Zealand. Peter Jones explains to MHD some of the key findings, surprises, and implications.
a result, B2C businesses have started benchmarking their visibility and control capability against their employees’ B2B experiences.
“For example, say a person goes to work at the chemical manufacturing company and tells a story: ‘Yesterday I received an e-commerce order from ‘Amazacom’. I got immediate order confirmation, updates as my order progressed through fulfilment, tracking information upon despatch, and delivery options by the courier.’ Why, the employee asks, can’t they give their own customers visibility and control like this? This question is the subject of many B2B discussions today – and some are finding the required answers.
“Advanced B2C businesses are pushing into new frontiers of visibility, providing control not only to their suppliers, but also enhancing their consumer experience by providing them options as well. The B2C capability we all now experience has not yet reached full maturity. There is more to come, but what we now have has started migrating into the B2B environment, and all will benefit from this development.”
Peter’s holistic read on the outcomes of the survey leaves him optimistic.
“The first key takeaway is that supply chain now has a seat at the table within the C-suite and within boardrooms across the business community.”
He explains that the COVID-19 pandemic has taught us all the
importance of reliable, efficient, and controlled supply chains.
“Prior to 2020, many businesses had created significant exposure to single point failures in their supply chain. Above all, the survey results speak about supply chains being enhanced to reduce risk.
“Supply chain became a central topic of discussion in the boardroom because production lines were stopped, because critical supplies couldn’t arrive, because there was nothing to sell. Similar discussions happened in our homes when we could not buy toilet paper. From the board room to the dinner table, we all became aware that supply chains need to work, and when they don’t both business and families feel the consequences.”
Peter adds the survey showed that businesses have responded to the importance of their supply chains, with 77 per cent of respondents confirming supply chain investment in 2023.
“My final reflection is that we will likely see a much greater distinction between businesses’ capabilities based on supply chain. In the second half of this decade, we will see the impact of those investing in next generation supply chains today and those that are not. The companies that are developing now will stand in great contrast to those who have not developed their supply chains in this season.
“Supply chain has become a
distinctive competency for some businesses. For others it will be that advantage within the next two to three years. For others who are not investing in this period of opportunity, it will become an even greater challenge as the gap between the ‘have’s’ and the ‘have nots’ amplifies and accelerates heading into the middle years of this decade.
“When asked ‘What do you do’? my answer has for 27 years been, ‘I work in supply chain’. For most of my 27 years this answer has often had the follow up question, ‘What sort of chains do you supply?’
“But today I almost always get asked informed questions that display knowledge and interest. As the survey displays, supply chain is front and centre now. At home, we know about it, in business we are working on making them more agile and resilient. In board rooms there is now experience-based knowledge regarding the correlation between supply chain success and business success. The survey demonstrates with great clarity that businesses better understand the importance of supply chain and are rapidly addressing their gaps with commitment and investment.” ■
CAPITAL MARKETS KEY THEMES
In this month’s column, Colliers provides MHD with an in-depth analysis of the pricing of industrial real estate assets and the outlook for 2023.
Despite broader economic headwinds, the Australian industrial and logistics sector continued to show its strength throughout 2022. The key themes for 2022 included:
• Occupier market exceeded expectations - take-up set a new record and vacancy rates plummeted in all markets.
• New rental benchmarks set - rental growth grew by six times the longterm average as occupiers competed aggressively for space.
• Investment activity eased in H2 2022 - the pace of activity in the investment slowed in the second half of 2022 as buyers and vendors worked through a repricing period.
• Yields expansion cycle began –rising interest rates and debt costs had flow-on impacts to pricing. Overall investment volumes totalled $7.9 billion in 2022, and while this is down from the record $16.0 billion in 2021, it is the second-highest
NATIONAL INDUSTRIAL & LOGISTICS INVESTMENT VOLUMES ($10M+)
volume on record. Deals in the current environment are still proceeding; however, the buyer pool has thinned.
The key theme to emerge in the capital markets space in 2022 was asset pricing as yields softened for the first time in over a decade. Inflationary pressure has led to a sharp rise in interest rates globally,
and as a result, industrial and logistics assets are being repriced to reflect higher funding costs. Since the peak in pricing in Q1 2022, prime yields have softened by 85 basis points on average nationally, while long WALE assets have seen closer to 100 basis points of softening over the same period, given that the rental upside cannot
be accessed for some time. Looking ahead, it is inevitable that industrial and logistics asset prices will continue to be impacted in 2023; however, the scale of any movements will depend on a myriad of factors, including the terminal cash rate. Once interest rates stabilise and lenders are pricing debt with more predictable spreads, investment demand is expected to pick up. However, sellers face a price adjustment for the time being, and many are only bringing assets to the market if they need to.
WHERE TO NEXT FOR PRICING?
Interest rates which provide a crucial backdrop to real estate pricing, have increased sharply from the first rate rise in May 2022. Going forward, it is forecast that interest rates will peak at ~3.6% by mid-2023, while a number of the big four banks are
anticipating rates will ease in early 2024 as economic growth begins to drag. Nonetheless, interest rate rises will continue to increase funding costs, and flow-on effects will occur to yields and pricing.
Based on the outlook for interest rates and funding costs, our view is that yields will soften a further ~50 basis points by mid-2023 and then stabilise thereafter, taking the national prime yield to just over 5.25%. Prime yields in Sydney and Melbourne are expected to sit closer to 4.75% and 5.00%, respectively, at the same point in time.
Our analysis shows that for every 25 basis point softening of yields, a ~7.0% increase in rents would be needed to preserve asset values. While rents are growing well in excess of this on an annual basis, the softening of yields to date has outpaced rental growth, and prime capital values have fallen on
average by 6.2% nationally since the peak in pricing in Q1 2022. From the pricing peak, prime asset values are forecast to fall ~10.0% by mid-2023 before improving thereafter as yields stabilise and rental growth remains solid to drive an uplift in asset values. For context, the peak-to-trough decline during the GFC totalled 22.9%, and pricing took eight years to recover to its pre-GFC level. This time around, pricing is expected to revert to the pricing recorded in Q1 2022 by the end of 2024.
Despite the uncertainty around pricing, given the lack of genuine benchmark transactions, fundamentals within the sector will remain supportive of further capital inflows in 2023, led by the occupier market.
While rising interest rates and debt costs will remain the key themes on pricing in 2023, the impacts will be mitigated to some extent given low gearing levels through conservative debt management, including highinterest cover ratios, which will mean less pressure on groups to sell. As a result, fewer distressed assets are likely to come to market in 2023 compared to the GFC. Similarly, with higher interest rates impacting levered returns, cashfocused buyers are expected to be active and competitive in transactions. This is expected to see private investors return to the market, particularly as most have been priced out of the market for the best part of two years and would be sitting on funds to invest from selling down assets in recent years.
Buyer demand will likely remain patchy in early 2023 before recovering quickly as capital sources re-enter the sector. Nevertheless, strong occupier fundamentals will continue to entice new market entrants into the sector. More broadly, groups with access to offshore capital are forecast to remain the most active in 2023, while REITs will likely be more selective in their acquisitions. ■
To download the report and find out more scan the QR code. Colliers welcomes any questions about the research and how it can best assist you with your property needs.
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MASTERING NARROW AISLES
For eight years BrandLink has been using Combilift Aisle Master vehicles to get the best results for its diverse 3PL operation. MHD speaks with BrandLink’s Kevin Butler to learn why he prefers Combilift.
3PL provider BrandLink caters to a unique array of clients, says Kevin
Butler, NSW Warehouse Manager at BrandLink.“We don’t limit ourselves to just one industry, but instead have a diverse client base, servicing customers across both DC and retail distribution, on and off-premise, and the ever expanding direct to consumer requirement ,” Kevin says. “Our facilities undergo regular audits every 12 months to ensure they meet the high standards of our clients. Importantly, we take pride in staying ahead of the curve in terms of technology – and require the best to keep everything running smoothly.”
BrandLink has a workforce of roughly 20 staff in each of its three warehouses – two of which are in NSW and one in Victoria. With 60 staff in total across the three warehouses, the company relies on top-end narrow aisle materials handling equipment to get its various jobs done.
And it relies on Combilift to provide
that equipment.
According to Kevin, the use of effective narrow aisle materials handling equipment is crucial for the success of BrandLink.
“BrandLink has been using Combilift for its material handling needs since the opening of its first site eight years ago,” he says. “The justification for choosing Combilift was due to its excellent customer service, good communication, and the product’s suitability to the company’s needs.”
BrandLink’s machines are serviced by Combilift vendor and partner Adaptalift. “The servicing is excellent,” Kevin says. “If we have breakdowns of our forklift, they’re usually out within the 24-hour period and have it fixed. Combilift has always been a reliable and efficient partner for BrandLink.”
He says the New South Wales warehouse of BrandLink currently
has four Combilift Aisle Masters and one counterbalance machine. By implementing the Aisle Master in its operations, BrandLink has been able to utilise more space and add an extra row of racking in its Erskine Park warehouse, notes Kevin.
“We’ve found Combilift to be a good partner with very responsive customer service,” he says. “If there’s a problem, it gets fixed quickly. Combilift has also been able and willing to trial new ideas with our forklifts and accommodating in setting up technicians to fit the units. For instance, one time we wanted to trial fitting out the forklifts with RF units, and although we decided against it after the trial, Combilift was happy to come back out and remove the unit as well. Overall, I feel like Combilift is there to help BrandLink.”
The recent acquisition of a Combilift Aisle Master OP by BrandLink has
added to the functionality and utility of their materials handling equipment. The Aisle Master OP is a stand-on operated machine – different from the previous sit-down models.
“The new model is more advanced in terms of technology, as it is operated by a joystick, making it easier and more comfortable for the operator to use,” Kevin says. “The main benefit I’d say from the new model is the ease of use and improved safety for operators.”
International opinion agrees, with the Aisle Master OP recently nominated as a finalist for the IFOY Award (International Intralogistics and Forklift Truck of the year), which honours the best products and solutions of the year. The electric stand-on forklift was shortlisted by the Jury in the ‘Warehouse Truck ‘highlifter’ category for its versatile operation in warehousing applications.
Kevin adds that with an extremely tight industrial property market, he thinks premium narrow aisle vehicles of the kind Combilift offers will be increasingly important to get the most out of warehouse footprints.
“Moving forward, the utilisation of warehouses is going to be crucial, especially in the Sydney market where acquiring land and leasing warehouses is very difficult,” he says. “A lot of
companies are going to look towards bringing in more narrow aisles to maximise their available space.
“We had to go through a lot of trouble to get extra space when we acquired our warehouse at Arndell Park. I think a lot of people are going to be working hard to better utilise the warehouse space they already have –as it’s hard to acquire any more.
“I believe that technology, such as the Combilift Aisle Master, will play a crucial role in maximizing space. The OP models are more comfortable and safer to use, with stand-up operation and joysticks, and I think this is definitely the way to go.” ■
AISLE MASTER OP HIGHLIGHTS
• Up to 12m lift height
Up to 2500kg lift capacity
Low floor height of only a 280mm: a single step speeds up order picking compared to an operator having to get in and out from a seated position.
• Aisle widths as narrow as 1.9m while allowing order picking from either side.
• 360 degree visibility
• Truck to rack: indoor / outdoor usage
• Adjustable Joystick control
I believe that technology, such as the Combilift Aisle Master, will play a crucial role in maximising space.By implementing the Aisle Master in its operations, BrandLink has been able to utilise more space.
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TOYOTA FORKLIFTS DELIVERING FOR BORDER EXPRESS
How Toyota Material Handling helps Border Express to keep running smoothly.
Toyota Material Handling Australia (TMHA) has helped an Australian-owned transport company avoid logistical difficulties, providing support and equipment when it was most needed.
After putting out a new business tender, Border Express settled on TMHA thanks to the performance of its Toyota forklifts and its broad network of aftersales support.
Border Express National Procurement Manager Alec Trikash says there were multiple factors that
saw TMHA come out on top ahead of six other offerings.
“TMHA was selected as the successful tenderer based on a number of factors including reputation, the value proposition that was offered, the network that TMHA has, where it’s primarily TMHA staff instead of agents – particularly in regional areas,” Alec says. “Those were the three primary factors – and the quality of the equipment.”
Having such a diverse geographical reach via their direct branch network,
the extensive scope of TMHA’s network and the expertise of its service technicians was an important factor in Border Express’s decision to partner with Toyota.
“The feedback has been that the service technicians are very responsible and knowledgeable,” Alec says. “So, positive feedback all round regarding TMHA from both the operators and operation management sides.”
With 18 branches across the country, Border Express requires a large fleet
of machines, with approximately 215 total units needed consisting of gas forklifts, electric pallet jacks and reach trucks.
Due to the current global supply chain issues, replacing Border Express’s 215-strong fleet was always going to be a tough ask, however TMHA “bent over backwards” to make the change work.
“Despite the global supply chain issues initially delaying delivery, TMHA senior management stepped in to support Border Express and since then they’ve been fantastic in supporting us,” Alec notes.
“Pulling out all the stops in terms of new equipment, sourcing short-term hire equipment and even additional equipment through a sub hire arrangement.”
Since switching fleets to TMHA, Border Express’s forklift operators have praised their new Toyota forklifts, with Toyota’s System of Active Stability (SAS) being a particular standout.
“It’s been noted – the equipment has received positive feedback from the operators,” Alec says. “There were some adjustments that needed to be made to the equipment and Toyota were very quick and responsive in delivering that – so very happy.”
Developing strong relationships is a key facet of the way Border Express does its business, and TMHA General Manager – Corporate Accounts, Steve Hopkins, says the two companies came together in trying times to achieve the best outcome.
“Border Express is driven by having genuine relationships, it’s not just something they pay lip service to,” Steve says.
“Making an assessment of the marketplace, they viewed TMHA as the most suitable to partner with based on our fundamental values.
“Given that supply chains have been challenged across the world, we’ve worked in unison with Border Express to ensure that any operational distress this could have caused them has been eliminated.”
Toyota’s I_Site Fleet Management System has also unlocked further efficiencies for Border Express, allowing the company to analyse the way forklift operators work and where improvements can be made.
“The machines are fabulous, the fleet management system is excellent and we’ve been getting some great data captured that we can sync back through to our operators to train and help change some of the behaviours, so in that regard the fleet management
system has been second to none,” Alec says.
Since moving to THMA, Alec has found the products, service and value has improved for Border Express, and would happily recommend Toyota to others in the industry.
“Certainly in terms of the level of service, especially the service technicians, they’re very good.
“Also the account managers in each state have really been working well with our operations.
“They’ve been really proactive and have gone above and beyond in terms of the training, inductions, the equipment, and helping us out with things like the pre-delivery reports. We’re very delighted in terms of the overall value proposition.”
Border Express was founded over 40 years ago by the Luff family and is 100 per cent family owned with the third generation of the family now in the business.
It offers parcel and bulk freight services to B2B and B2C customers across the country with a particularly strong regional presence and employs more than 1500 staff throughout Australia. ■
For more freecall 1800 425 438 or visit www.toyotamaterialhandling.com.au
BALYO HELPS CLIENTS SCALE NEW HEIGHTS
MHD sits down with Joshua Couturier, ANZ Sales Engineer for BALYO, and Jian Han Law, Head of APAC Sales, to discuss how their Very Narrow Aisle robots have helped global companies scale up their operations to a staggering 17 metres to face business challenges head on.
2
023 finds Australian warehouses and distribution centres feeling pressure from all sides, from a staggering increased demand for throughput, to rising space costs and let’s not forget the talent shortage that’s clogging up job boards for qualified personnel that has been a problem since the pandemic started.
While it seems like there’s no escape from these woes, organisations are finding ways to use automation to help face these challenges and find surprising new efficiencies at the same time.
BALYO was founded almost twenty years ago with the simple mission of taking standard forklifts and turning them into a robotic workforce. Most people call these AGVs, but BALYO says it dislikes the term. AGVs typically require huge amounts of infrastructure like reflectors and guides while BALYO robots are autonomous. The guidance
is on-board, which means no changes are required to a user’s existing space. Brains and brawn are all selfcontained on the robot. In the past few years, BALYO (and the industry) have become hyper-focused on the vertical space over the horizontal. Companies need to start thinking up, not out; and it’s been building innovations to be the leader in realising 3D environments, owning the concept of precision along the x, y, and z axises.
CREATING STORAGE SPACE WITH VNA
It’s all about cost and efficiency, which means maximising space. Warehouse rents per square metre costs are reaching never-beforeseen levels in Australia so companies need to first start by using all their available space.
For example, implementing VNA
racks can reduce horizontal ground footprint. For all levels users go up in a rack, it’s estimated they gain 30 per cent more storage capacity. Very Narrow Aisle racks are obviously a great alternative to Narrow Aisle racks in terms of storage capacity and density; and combined with shuttle racks, customers get an extremely dense storage capacity.
The highest BALYO has seen, which it says is a world record, is a 16.8m very narrow aisle pick for a company in Singapore called Singapore Storage & Warehouse (SSW). SSW wanted to convert its manual forklifts to autonomous robots without sacrificing reliability and safety.
Thanks to BALYO’s innovative approach to safety, standard OEM forklift controls, and smart perception of pallets, reaching new heights is now possible. After a short test period in 2021 and a commissioning period
MHD WAREHOUSING
of a few months, BALYO successfully ramped up and handed over four autonomous VNAs to SSW, covering 20 seventy-five-metre-long aisles.
“We are very happy to be partnering with BALYO & Linde for this automation project,” Ong Swee Keong, CEO of SSW, says.
“The productivity gains have been impressive, and I am glad that the dedication and hard work put in by everyone in SSW, Linde, BALYO, and our partners for this project has paid off. As SSW continues to transform and grow, we look forward to achieving even more business success with our reliable partners.”
ACHIEVING EFFICIENCY AND SAFETY
In addition to space challenges, warehouses globally are facing very real labour shortages. Finding milk-run forklift drivers is a challenge, finding VNA drivers is 10 times harder. There’s also the efficiency element to consider. Humans make mistakes, robots don’t.
When wrong pallets are shipped to the wrong place with an entire cargo crate packed with the wrong product, fixing that mistake can be costly and crippling for companies. Robots are plugged directly into the WMS and when they scan the wrong barcode, they trigger an alert. Humans won’t always do that, sometimes they’ll just keep going since they are always trying to make up time.
Another great feature of BALYO’s robots is that even though customers are transitioning to an automated system, they are still able to use the robot in manual mode as a regular forklift, giving them flexibility and control over the system when required.
Let’s also not forget about safety. From moving through the aisles to picking the pallets, robots are simply safer. At BALYO every vehicle has 360 degree safety sensors, in addition to cameras and sensors on the mast to ensure perfect alignment during pick and drop. This becomes especially important when users are lifting half a tonne of material at such perilous heights.
Throughput impact is a definite consideration. Travelling speeds and forks movements must be slower at
such heights, to ensure full safety. The answer to optimise slower operations was double-cycling, precise traffic management, and forks anticipation (diagonal movement on-the-fly).
Double cycling is the most important one; it is a pallet movement strategy that aims to reduce the amount of time a robot travels without a load on its forks.
Another challenge BALYO faced was mast bending when dropping at levels above 12 metres. It controlled this with a proprietary algorithm that calculates the correct forks extension based on weight of the load and the forks height.
This allows BALYO to ensure the pallets are always placed in the same position in the racks and on the forks. A similar challenge is the dynamic mast oscillations, which are reduced thanks to a similar algorithm adjusting the forks speed and acceleration during pick and drop phases.
GENERATING ROI AND PRODUCING SMOOTHER OUTCOMES
Some of the people Joshua has spoken to think the answer is an ASRS system. The reality is that under 18 metres an automated forklift is less expensive and provides a much faster and better ROI.
VNA systems are more flexible and scalable. As users’ pallet movement increase, it’s simply easier to add more robots. There’s no change that’s needed to their physical warehouse, they just need to add more robots to the system.
Customers can also move a robot to new locations with ease. They can’t say that with an ASRS system. Once it’s built, it’s not going anywhere.
Easy and repetitive processes are the best place to start. Inbounding and out-bounding of pallets in any rack height can easily be automated. In addition to the VNA, BALYO has a very popular reach truck that can lift up to 11 metres and work in an aisle width of three metres. BALYO will help customers identify how automation can benefit their logistic operations and provide the best fit from its extended range of automated forklifts. ■
Thanks to BALYO’s innovative approach to safety, standard OEM forklift controls, and smart perception of pallets, reaching new heights is now possible.
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COORDINATING PROPERTY SALES SUCCESS
While a relatively young company – having only opened in 2009 – Leedwell has swiftly garnered a reputation for creating innovative property solutions that cater to the precise, context-specific needs of each and every client.
Operating primarily out of its Adelaide and Melbourne offices, Leedwell offers property services across the entire nation, and has the breadth of expertise and industry connections to deliver results across Australia.
This capability was much in evidence recently, as Leedwell coordinated the sale of five properties across South Australia and the Northern Territory on behalf of Raine Properties, the former owners of Gilbert’s Transport Service.
The transport company was sold to ABC Transport in June 2021 and operated out of transport depots in Adelaide, Alice Springs, and Darwin. Following the sale of the business, Raine Properties engaged Leedwell to coordinate the sale of its portfolio of depots.
Although headquartered in Adelaide and Melbourne, Leedwell’s activities don’t end at the Victorian or South Australian borders. If it doesn’t have the expert knowledge in-house, it knows the experts that do – and has effectively cultivated partnerships with them that can be called-on to deliver whatever is necessary for the client.
In this case, Leedwell partnered with NTC Property in Darwin to sell three of the properties in the
Northern Territory. An 8000 sqm vacant parcel of industrial land in Berrimah was sold off-market followed by an on-market EOI campaign to sell a 10,000 sqm transport depot in Alice Springs and a 20,000 sqm depot transport depot in Darwin.
“Typically, the NT industrial market is dominated by local investors, however, when quality assets such as the Darwin and Alice Springs’ depots were offered to the market, we saw solid enquiry from interstate groups with an interstate investor ultimately purchasing the Darwin depot,” Nigel Sharp, Director from NTC Property, says.
“It was a pleasure working with Steve [Smith] at Leedwell, who
coordinated the campaign, and we wish the vendors the best in retirement.”
ABC Transport acquired the Alice Springs depot while an investor acquired the Darwin depot.
“Our transport business occupied a number of properties throughout SA and NT and once we sold the business, we decided it was time to divest of the properties also,” Peter Gilbert says.
“Steve and Leedwell were referred to us, and following a number of discussions and meetings, we were comfortable that Steve could coordinate the sale of properties in Adelaide and also NT through his relationship with NTC Property.
“The sale campaigns were well
Leedwell recently coordinated the sale of five major properties across South Australia and the Northern Territory. While the Leedwell team says it couldn’t have done it alone, its partners say it wouldn’t have happened without Leedwell, either.6 McCarthy Close, Wishart, NT.
prepared, and we received regular communication and feedback regarding the process. Having one point of contact, but also the ability to converse with Nigel when required, gave us great comfort throughout, and in the end, we were very happy with the results of each sale.”
The Adelaide portfolio included two assets, a vacant parcel of land with concrete hardstand of roughly 8000 sqm and a transport depot of roughly 14,000 sqm, and they were sold in one line to a national investment and development company.
“Building a trusted relationship with our clients is paramount when considering the best strategy to meet their objectives,” Steve Smith, Partner at Leedwell Property, says.
“In this case, we extended that trust through our business relationships with interstate colleagues in order to streamline the communication process and deliver a coordinated campaign to achieve the sales outcomes.
“Partnering with NTC Property was seamless and Nigel’s experience
Building a trusted relationship with our clients is paramount when considering the best strategy to meet their objectives. In this case, we extended that trust through our business relationships with interstate colleagues in order to streamline the communication process and deliver a coordinated campaign to achieve the sales outcomes.
and understanding of the NT market provided confidence to Leedwell and our client. The process did not miss a beat and our client is very happy with the results.”
For Steve and for Leedwell, coordinating this kind of multifaceted transaction is testament to the Leedwell philosophy of leveraging not only their own unique strengths, but identifying and leveraging the unique talents of others to deliver consistently successful results.
After all, unique clients deserve unique property solutions. ■
MAKING SPACE WITH BOWEN STORAGE
Bowen Storage has been providing various solutions to its customers for more than 40 years. Greg Phillips, National Sales Manager at the family-owned company, takes MHD through the processes involved in creating space in warehouses and DCs, and shows how automating and outfitting a facility is cheaper than most business owners think.
Greg Phillips has been working at the family-owned Bowen Storage for the past 23 years. He’s now its National Sales Manager, responsible for ensuring the company’s generating revenue and that his team members provide vital information to their fellow design and project manager colleagues to guarantee a seamless and easy customer experience.
The storage solutions enterprise has served customers for over 40 years with offices in Melbourne, Sydney and Brisbane with teams servicing Australia and New Zealand.
H OW BOWEN STORAGE HELPS
At Bowen Storage, Greg’s helping businesses optimise their warehouse capacity and throughput with smarter solutions. This involves going to a warehouse, looking at the shape and dimensions of the facility, the stock profile the customer’s storing, and assessing the materials handling equipment (MHE) such as forklifts, trolleys, and pallet jacks.
“We look at the warehouse flow, including entries and exits, amenities, offices, warehouse ceiling height, and see how they work together,” Greg says. “We can assist our clients with challenges such as making gains in efficiencies or storage and calculate what return on investment (ROI) is possible for them.”
As an example: if all the doors are on the front wall, Bowen can run its racks and the aisles to face the doors, allowing the forklifts to move easily to the unloading and loading areas.
The customer needs to have appropriate MHE to access storage systems that utilise the full height of the warehouse. Without the right equipment, they won’t realise their full ROI.
“Every business is different,” Greg explains. “They might have a forklift capable of reaching eight metres, but only four-metre racking. The solution is simple: we’ll provide storage solutions that go eight metres higher rather than four. More often than not, it’s the opposite; the warehouse height is not fully utilised with storage systems or MHE.”
AUTOMATE INSTEAD OF RELOCATE
By utilising the space in a warehouse, businesses can avoid the disruptions and hassles of having to relocate, including losing employees due to longer travel times or increased downtime while shifting from one location to another.
To avoid relocating, Bowen Storage can assess the MHE and storage system options to increase the capacity and efficiency of the space. Other levels of investment include semi-automated and automated solutions such as narrow aisle racking with wire guidance MHE and shuttle racking. There are also goods-to-person (GTP) solutions, such as little autonomous mobile robots; they can bring pallets and/ or small parts to the warehouse team member while they remain at their picking stations.
Sometimes it’s a matter of reconfiguring the shelving, racking, or storage system to be more
efficient. Other times, it’s about installing an entirely new standard or automation piece, linking with software, ERP and WMS systems.
“Every solution is designed for certain SKU profiles,” notes Greg. “You have to look at the whole operation. One size doesn’t fit all. You have to look at what they’re storing and how it arrives at the facility and leaves. For example, some goods come in containers, whilst others come on open trucks; food has a use-by-date, but paper doesn’t.”
It’s sometimes necessary for a client to relocate because their warehouse or DC is too small or can’t be fitted with the appropriate smart solutions to produce more storage space. But relocating is difficult due to the scarcity of warehouses available.
In addition, the rental prices can be higher and non-negotiable, and
there may not be availability near the existing warehouse, which could result in staff leaving due to travel distance.
When businesses rent a facility like a warehouse or DC, they’re paying per square metre and usually not utilising the available cubic space. Bowen Storage can provide solutions such as a mezzanine floor or multiple high-rise shelves for small to medium parts, or higher pallet storage systems for bulk items to offer superior cubic utilisation.
“We find that a lot of the time when businesses relocate warehouse, they relocate to a warehouse much larger than their previous one. Their efficiency gains decrease as a result because they use the same storage solution layout concept, which means all the forklifts and personnel have to travel further.”
MAKING STORAGE SPACE WITH SMART SOLUTIONS
Bowen Storage recently helped a Sydney-based business with a small facility to relocate into a much larger warehouse. Rather than copying their old layout and system with a mezzanine, they designed the new space with no mezzanine, but instead a tall storage solution with much better access to stock.
In another case, Bowen Storage added double deep racking to a cold storage DC to make it denser and more flexible because the client didn’t have a lot of the same product. Being a 3PL client, they had no control over the product mix being stored.
“We put in double deep racking because you need a minimum of two pallets of the same product, whereas, with other systems, you need a minimum of 10, 20 or 30 pallets of the same product to make it efficient,” says Greg. “While this particular food storage facility probably wasn’t the densest, we could offer a mixture of density and flexibility.”
While some businesses may be averse to change, an investment of a few thousand dollars can increase their efficiency gains.
“Most customers want a more efficient warehouse to get better throughput,” Greg explains. “Many
businesses are unaware that making changes to their layout or implementing a level of automation in their facility is actually affordable.
“It may not need to cost a million dollars or anywhere close to that. There are situations where an investment of less than $100,000 can increase their efficiency gains by up to 20 per cent, or it might be an increase to ten orders out the door every day instead of eight.
“Some businesses invest a lot in the front office and pay little attention to the state of their warehouse when it’s the warehouse that’s actually making them money. It can be hard to measure ROI. But we do know that relocating can cost hundreds of thousands of dollars.
“Relocating involves disruptions to business, costs time for operations and can cause a drop in customer service if deliveries are disrupted. Other hidden costs include updating all marketing materials with new addresses, updating warehouses, negotiating new freight contracts, etc. It could be $200,000 to relocate where instead we can put in $50,000 or $100,000 of improvements, allowing a business to get another three or four years of life out of their building.”
OUTSOURCING AND COLLABORATING
Greg says that customers with old and new facilities or who are relocating approach Bowen Storage for storage solutions. Their question usually is: “What is the most efficient way to fit-out this building?” Bowen
Storage examines their facility and operations and offers non-automated, semi-automated, and fully automated solutions.
This includes looking at all dimensions of the client’s business and operations and designing a greenfield layout to allow for maximum growth and ensure the customer doesn’t need to go through this process again in three- or four years’ time.
Businesses need to have efficient storage methods when storing products. There are particular storage requirements for different product categories. different solutions are required for storing small parts such as stationary and automotive parts, food (cold perishables), and/or bulky items such as furniture.
“One of our clients recently wanted racking right through their building which had a very low roof height,” says Greg.
“We advised them that racking wouldn’t increase storage capacity due to their ability to bulk stack their products, which they were currently doing. This just illustrates that every situation is unique, and at Bowen Storage, we’re prepared to be absolutely honest with our clients if we’re not going to create more storage space or help them get efficiency gains.
“We don’t sell for the sake of selling because we’re solutions providers. We get together in a team, depending on the requirements, the level of investment, and the project, and we work out the best solution for our clients.” ■
DO YOU KNOW A DRIVER OF CHANGE?
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RESMED TECHNOLOGY HELPING THE WORLD BREATHE EASIER
ResMed is an Australian company founded in 1989 and operates in more than 140 countries. Ozkor explains to MHD how it has helped this multibillion-dollar sleep tech business during the pandemic by providing it durable and reliable hygiene pallets.
As a global leader in its field of sleep technology, by any standards, ResMed is an Australian success story anybody would be proud of.
Founded in Australia in 1989 by Chairman Peter Farrell, ResMed now operates in more than 140 countries and enjoys a significant demand for its services at a time when international supply chain infrastructure and pallet availability has experienced disruptions due to COVID, high demands on shipping and wooden pallet pooling services.
From its headquarters, now located in San Diego, California, ResMed increased its revenue by 12 per cent to $US3.8 billion in 2022, leading the world in providing lifesaving sleep and respiratory care devices, as well as software solutions to various out-ofhospital healthcare providers.
From its Sydney manufacturing facility, ResMed made the decision to change from wooden to plastic pallets in order to fit out its 3PL warehousing facility resource.
“We were previously renting wooden pallets but for a number of reasons, we decided that it was economically more viable in the longer term to buy our own plastic pallets,” Brett Davis, ResMed Warehouse and Logistics Manager, says.
“Local plastic pallet supplier Ozkor was able to respond in a very timely manner and provided excellent project
management support with the right product at a crucial time.”
According to Ozkor, the APP-1165 Hygiene pallet was chosen after detailed trials in order to ensure the pallet not only met the specification terms of reference but also satisfied ResMed that the investment was viable over the long term.
Brett explained how ResMed relied on Ozkor Hygiene pallets to address two critical issues at once: source enough wooden pallets to satisfy demand; and have a clear understanding of how many the company has or could expect at any given time.
Ozkor helped ResMed gain more control over its distribution loop, provide suppliers with adequate pallets, and more confidently meet its obligations to its healthcare customers.
“At a time when international and local supply chains were fraught with complexities that appeared to be approaching a crisis, we needed to guarantee pallet supply because there was a danger of putting ResMed’s operations under threat,” David Dal Santo, Account Manager at Ozkor, says.
“As a major Ozkor customer this was out of the question, so by prioritising the pallet production process, coupled with good dispatch planning, we were able to comply with the instructions given and meet the expectations required.”
The App-1165
pallet is a four-way entry version of an Australian 1165x1165x150mm design and has a flat solid top deck. It’s easier-to-clean construction is made without the use of concealed structural cavities, which means when exposed can accommodate contaminated substances or pests.
David says, “the APP-1165 is a very popular model mostly used in high care industrial environments like ResMed’s as well as the food and pharmaceutical industries where hygiene, durability and product longevity are vitally important.” ■
For further information, call Ozkor Pty Ltd on (02) 9672 8588 or visit www.plasticpallet.com.au
heavy duty HygieneERROR FREE KITTING AND ASSEMBLING WITH IFM
Eugene Inbaraj, Robot Perception Systems at ifm efector explains to MHD what kitting is, and how the automation solutions company offers the ifm mate kit to help operators with this method and manual assembling processes.
What’s in the box? That’s probably what’s on most people’s minds when opening a new phone package.
The smell of newness permeates the senses, the exhilarating feeling of holding a piece of the latest tech in your hands is almost unbearable. The gorgeous satin pink of the skin, the neatly coiled charging cable that will never remain the same once uncoiled.
Finding the SIM slot on the sleek side and you think, “time to chuck my new SIM in.” You look in the box to locate the tool that pops the SIM slot out. You don’t find it on the tab where it’s supposed to be. Under the owner’s manual? Nope. Good feels exit at this point.
The situation I’ve described here is probably a rarity, but it does happen. Something must have gone wrong in the kitting process. This process of putting nonrelated items: cable, charger, etc, to form a single SKU is commonly known as “kitting.”
GETTING INTO KITTING
Kitting is typically a manual process. It involves the operator having to retrieve different SKUs to form the one part that is eventually dispatched to the customer. The process is not different to the manual assembly of parts.
Take for example a three-way pool valve. This is normally made up three sub-parts: the body, the cover, and the rotating part called the “ball.”
Along with these parts there are also O rings and gaskets that need to be inserted. At any point in the process a part could be missed, or an orientation could be off.
Along with that, walking to and from the warehouse to replenish each sub-part is inefficient. Typically, poka-yoke is used
to reduce the errors in the assembly of product or in the kitting process. While poka-yoke is a tried-and-true method, it still suffers from the error such as bad writing and reading of information, loss of the order sheet and so forth.
So, is there a way to check for errors, reduce walking time, tracking the usage against stock levels to avoid unnecessary delays, and at the end of it provide information about the genealogy of the product?
USING THE IFM MATE KIT TO ASSEMBLE
With all that in mind we at ifm have developed the ifm mate kit that can help with the kitting and manual assembly processes.
The ifm mate kit uses computer vision to identify and follow the movement of an operator’s hands.
Using a pre-configured sequence, the operator is guided through the sequence by observing visual cues in a monitor. As the operator reaches for parts, the movement of hands is checked. Wrong
picks are visualised on the monitor. At each step the process can be checked.
Quantity of materials used is always checked. The time taken to complete one product can be known as well providing close to real time information for an end-user or when optimising despatch times.
Since connectivity to ERP and production planning software can be done easily, track and trace can be achieved easily.
An added benefit to having the ifm mate kit is the savings accrued in time and resource when training operators. Any new changes to the product or a fluctuation in demand means retraining of a current operator, or training of a casual hirer to meet the higher demands.
With the ifm mate kit’s training mode feature employing someone to train and monitor the operator is not necessary anymore. The ifm mate kit will not tire and is consistent. It can truly be your best mate. ■
Eugene Inbaraj, Robot Perception Systems at ifm efectorTAFE NSW TRAINING FUTURE SUPPLY CHAIN WORKERS
TAFE NSW is an educational partner of the Supply Chain and Logistics Association of Australia, and won the organisation’s 2022 ASCLA Training, Education & Development Award in November 2022. It tells MHD how it’s training and reskilling future supply chain workers to meet ongoing labour shortages and industry demands.
TAFE NSW SKILLING AUSTRALIA’S SUPPLY CHAIN WORKFORCE
TAFE NSW is working closely with the Supply Chain industry to build a pipeline of skilled workers with the in-demand skills to keep Australia’s economy moving.
Winners of the 2022 ASCLA Training, Education & Development Award, TAFE NSW is partnering with industry to deliver high-quality skills when and where employers need to keep pace in a rapidly changing industry.
SUPPLY CHAIN TRAINING AT TAFE NSW
TAFE NSW has been skilling the future workforce for more than 130 years. As Australia’s largest vocational education and training provider, TAFE NSW delivers hundreds of practical, industry-relevant courses to meet labour demands and address skills shortages.
Industry 4.0 and rapid technological change are disrupting businesses across the industry, and TAFE NSW is committed to supporting the evolving needs of the Supply Chain and Logistics Industry.
Teacher of Supply Chain and Logistics at TAFE NSW Meadowbank, Michael Farragher, says since the pandemic, TAFE NSW has provided skills training to boost the supply chain workforce and strengthen local economies.
“It’s an incredibly exciting time to be involved in Supply Chain and Logistics,” explains Michael. “COVID-19 has
highlighted for many what those of us in the business have known for a long time – we are a vital part of the economy and the supply chain.”
The rapid growth in e-commerce has put enormous stress on the SCL industry, and as a result, there has been a significant increase in demand for skilled workers.
With customer demand for quicker delivery options, such as 24-hour delivery timeframes, there is a limitless opportunity for TAFE NSW to support industry to meet this demand.
“We’re working with industry stakeholders to design and develop a customised training program, including a new traineeship model with companies like DHL.”
TAFE NSW is working with these SCLAA partners to mitigate supply chain operations bottleneck issues by providing students the opportunity to tackle these challenges through simulated scenarios.
HOW TAFE NSW IS MEETING INDUSTRY DEMAND
TAFE NSW offers training online, onsite in the workplace, and across 170+ learning locations in NSW is delivered by an extensive network of qualified specialist trainers and subject matter experts.
With the Federal and NSW Governments investing in additional fee-free places in a wide range of courses, there has never been a better time to study and develop skills in the field of Supply Chain and Logistics.
The 2022 Australian Jobs Report listed
Purchasing and Supply Logistics Clerks in the top five employing occupations across the nation.
Michael himself began his career in SCL as a packer in a warehouse. His experience boasts 25+ years in extensive management in multi-million-dollar profit FMCG supply chains engaged in retail, wholesale, manufacturing, import and exporting, and logistics in Australia and Europe.
Michael notes there had been an increase in the uptake of supply chain qualifications in Greater Sydney and regional areas such as Dubbo and Wagga Wagga.
To help meet this demand, TAFE NSW is delivering Statements of Attainments (SOA) and other short courses in target areas, which lead as a pathway into full qualifications.
Michael says there is an increasing focus on employers looking for workers with a minimum Certificate III qualifications.
“We’re seeing an increased awareness and demand for a Certificate III qualification at the moment in the workplace around traineeships TAFE NSW offers,” he adds.
To meet this demand, Michael says TAFE NSW has consulted with key industry stakeholders to design courses and equip learning environments to train students in the latest industry advancements.
Learners can access warehouse simulated environments at the MultiTrades hub at TAFE NSW Meadowbank to gain hands-on practical skills to
transition to the workplace quickly.
Students can develop their practical skills in pallet machinery, forklifts and freight systems, and other technologies such as scanners used in Supply Chain and Logistics roles.
“Our heavy vehicle driving simulator has also travelled around the state providing training where it is needed,” says Michael. “The simulator enables drivers to experience a wide range of environmental conditions and fully understand the consequences of the decisions they make behind the wheel.
“Supply chain skills in businesses from e-commerce to aviation are in high demand, so TAFE NSW is providing more than warehouse and logistics – we’re providing skilled workers in industries like transport, government, and healthcare, too.”
The new Certificate IV in Supply Chain Operations now offers a broader range of specialisations in the supply chain, covering logistics, purchasing and procurement, transport scheduling, and warehousing.
With the quality, number, and methods of delivery TAFE NSW offers in SCL training, we are a critical connection point between skilled workers and industry.
SUPPLY CHAIN AND LOGISTICS COURSES ON OFFER AT TAFE NSW:
• Certificate III in Supply Chain Operations (specialising in Logistics Operations or Warehousing Operations)
• Certificate III in Driving Operations
• Certificate IV in Supply Chain Operations (specialising in Logistics, Purchasing and Procurement, Transport Scheduling or Warehousing)
• Certificate IV in International Freight Forwarding (Senior Operator)
• Certificate IV in Procurement and Contracting
• Diploma of Logistics
• Diploma of Customs Broking
• Advanced Diploma of Supply Chain Management
In addition to full qualifications, TAFE NSW provides a suite of more than 30 short courses for targeted training or as a pathway to an accredited qualification, including:
• Supply Chain Management
• Chain of Responsibility
• Driving operations
• Safety (transport, manual handling, WHS)
• Forklift operations (LF & LO licensing)
• Firefighting
• Vehicle road safety and Vehicle risk management
• Container fumigation
CAREER SWITCHERS ON THE FAST-TRACK
Michael says a considerable number of people from industries outside of SCL, such as hospitality and aviation, have engaged with supply training to upskill for a career change.
While working as a nurse, Rayleen Woods decided to switch up her career and discovered a passion for the supply chain industry after working as a forklift and crane operator at a large steel manufacturer.
Rayleen says after stepping into a temporary Warehousing Coordinator role, she recognised the potential to grow her career and decided to complete Certificate IV in Warehousing and Logistics at TAFE NSW St George.
“When we talk about warehousing and logistics, it’s much more than loading and driving trucks. There is a large practical element for people who want a hands-on job but also many coordination and management opportunities,” says Rayleen.
“My teacher’s experience helped me explore the different job roles available and supported me in applying for my
current position. The skills I gained at TAFE NSW have made all the difference, and I use them in my job every day.”
Rayleen is now managing a large trucking contract and completing a Diploma in Logistics and hopes to encourage more women into the supply chain industry.
“Supply chain is typically a maledominated industry but is a very supportive work environment, and there is so much opportunity for women to develop a successful career and create a good work/life balance,” she adds.
“There are also different study options at TAFE NSW to help you manage work and family while gaining the skills you need to grow your career.”
CHAMPIONING DIVERSITY IN THE WORKFORCE
The increased number of women in supply chain roles has been a direct result of TAFE NSW’s platinum partnership’s ‘Women in Supply Chain Sector’ initiative.
We also provide a range of skills initiatives to improve the educational and employment outcomes of Aboriginal and Torres Strait Islander peoples, ensuring equitable opportunities.
We support students in their lifelong learning journeys through further education pathways and youth participation in education and employment, which results in strong economic participation from TAFE NSW graduates. This ensures a diversely skilled workforce and equitable opportunities for all Australians.
TAFE NSW also ensures other disadvantaged groups gain the skills to participate fully and autonomously in their communities, adding value to our economy. Our targeted programs provide self-assurance for those affected by domestic violence, incarcerated people, homeless people, and refugees and migrants, among many other disadvantaged community groups. We provide foundational and pre-vocational training for those requiring assistance to participate in education, and our supporting specialist services include career support, pre-training support, and disability support. ■
To view the range of supply chain and logistics courses on offer at TAFE NSW, visit tafensw.edu.au or call 13 61 50.
RWTA JOINS NATIONAL FOOD SUPPLY CHAIN ALLIANCE
The Refrigerated Warehousing & Transport Association (RWTA) has joined the National Food Supply Chain Alliance (NFSCA). Together they’re urging the federal government to establish a National Food Security Plan, the first of its kind as Marianne Kintzel, Executive Officer at the RWTA explains.
The Refrigerated Warehouse and Transport Association (RWTA) has joined the National Food Supply Chain Alliance (NFSCA) that include the National Farmers Federation (NFF), Australian Meat Industry Council (AMIC), Independent Food Distributors Australia (IFDA), Master Grocers Australia (MGA), the Australian Association of Convenience Stores (AACS), AUSVEG, Seafood Industry Australia (SIA), and the Restaurant and Catering Industry Association (RCIA).
The National Food Supply Chain Alliance (NFSCA) represents all facets of Australia’s food supply chain from farmers, processors, grocers and butchers, independent supermarkets, convenience stores, wholesale suppliers and distributors to food retailers including cafes, restaurants, hotels, and clubs. In total, these national food industry associations represent more than 160,000 businesses with a combined revenue of a staggering $224 billion and who employ almost one million workers.
The Alliance, which represents every component of the nation’s domestic food supply chain from paddock to plate, is alerting the government to the threats that are unprecedented in scale and that the only solution to stabilising future food price fluctuations and reducing food shortages is to urgently establish the nation’s first ever ‘National Food Security Plan.’
Joined by Members of the Alliance and led by Richard Forbes from the Independent Food Distributors Australia (IFDA), we met with government and spoke about the creation of a supply chain strategy regarding resilience in the supply of food, food security and keeping the prices down at a time when they are rapidly rising.
A national food map is critical to determine where Australia’s strength and weaknesses are in the food supply chain. This will identify critical areas and barriers to a safe supply chain and to prepare for potential disruptions to Australian and international food supply chains.
Efficient, cost-effective, and resilient supply chains are critical to ensure stable and affordable food supply across the country. Recent disruptions have exposed weaknesses in international and national supply chain operations and significantly affected the cost and
availability of food.
Being able to harness innovation and integrating diverse knowledge systems will help address climate change needs as part of a holistic risk management approach for Australia’s food systems.
The time for strengthening Australia’s food system is now. Business-as-usual and incremental adaptations to Australia’s agrifood system will be insufficient for managing the changing risk landscape and sustainability challenges.
FoodBanks Hunger Report 2022 states more than two million households in Australia (21 per cent) have experienced severe food insecurity in the last 12 months, where families have to skip meals or go whole days without eating because there is no money or food. The time is now, and we look to create confidence in food supply and quality every day for every Australian. ■
GEOTAB’S GO9 DEVICE
Completely redesigned and enhanced, the Geotab GO9 device is optimised for the collection and analysis of near real-time vehicle data. The GO9 features a faster processor, more memory, and a gyroscope. Expanded capacity allows even more and ongoing vehicle support, including better fuel usage support, and increased electric vehicle compatibility. Using Geotab’s patented tracking algorithm, the GO9 accurately recreates vehicle trips and analyses incidents. The GO9 also offers in-vehicle alerts to instantly notify drivers of infractions and – with hardware Add-Ons – provides live coaching for driver’s on-road performance.
For more information visit www.geotab.com/au/vehicle-trackingdevice
THE NEW COMBI-MR4 WITH DYNAMIC 360° ™ STEERING
Since Combilift launched its first C4000 model in 1998, multidirectional capability has been one of the major hallmarks of the company’s wide range of handling solutions. 24 years and thousands of R&D hours later, its latest product takes multidirectional capability to the next level. The Combi-MR4 is a 4-wheel electric powered multidirectional reach-truck, which incorporates Combilift’s new Dynamic 360° ™ steering, which provides rotation on each wheel, enabling seamless directional change of the truck while on the move. The system allows this extremely agile forklift to work in forward, sideward and crab steer mode, guaranteeing swift operation and excellent manoeuvrability. Hence the full name of the new model: the Combi-MR4 Dynamic 360.
For more information visit www.combilift.com/combi-mr4
PROJECT44 OCEAN VISIBILITY
Poor ocean visibility puts a strain on global supply chains, logistics costs, and customer service. At the root of the issue is low-quality data that hinders personnel productivity, streamlined operations, and proactive exception management. Today, more than ever shippers and 3PLs need global ocean visibility with the data quality, intelligence, ETAs, and proactive exception management that ensures efficient, costeffective, reliable, and sustainable global transportation. Project44’s Ocean Visibility solutions is here to help, with a suite of solutions that uses first-in-class data and analytics to improve personnel productivity, allow for proactive exception management, reduce logistics costs, improve customer service, and empower users for agile transport planning and procurement.
For more information visit www.project44.com
DEXION HIGH DENSITY STORAGE (HDS) SHUTTLE
The Dexion High Density Storage (HDS) Shuttle offers high density pallet storage without the use of forklifts.The shuttle unit travels on support rails, transporting pallets within the system by retrieving and depositing pallets, controlled by the user via remote control. The HDS Shuttle incorporates various features to ensure safe handling, high reliability and low energy consumption.This solution makes the most use of limited space and provides quick access to stocks. It is scalable according to the warehouse operations, throughput and goods volume. Reach out to a Dexion Supply Centre near you for more information or visit dexion.com.au.
For more information visit www.dexion.com.au
PEOPLE ON THE MOVE
A monthly wrap up of the latest appointments in the supply chain, materials handling and logistics industry.
COLLIERS PROMOTES FROM WITHIN
Colliers has appointed David Brisk, Director, to lead the business’ entire Brisbane Industrial Team. With a strong understanding of the market, industry experience, and ability to drive enduring value, David will drive exceptional results, and elevate the Brisbane Industrial service offering to exceed expectations for Colliers’ clients.
AUTOMATION SPECIALIST JOHN MILLS JOINS PROLOGICAL AS SENIOR CONSULTANT
John Mills is an award-winning warehouse designer and automation specialist. From a hands-on engineering background, John has more than 30 years’ experience in warehouse design and process engineering. He has been working with Prological since 2004 and joins the team as a permanent Senior Consultant.
PROLOGICAL STRENGTHENS TEAM WITH SENIOR ASSOCIATE HIRE
Chris Hudson has joined Prological as a Senior Associate. He has more than 12 years of supply chain and logistics experience, and expertise across transport and logistics management and operations, Sales & Operations Planning (S&OP), supply chain design, inventory management, and process improvement.
ASCLAA22 WINNER JOINS KPMG
KPMG has recently welcomed Irene Martínez González to its Supply Chain Operations Advisory team. She brings an international perspective and almost a decade of experience in supply chain thanks to her career across Europe, Asia, and Australia, including manufacturing Inditex stockrooms in Shanghai, designing a pan-European distribution network, demand planning, inventory management, procurement, and warehousing in Spain, and international logistics in Sydney.
CLOUD LEADER SHAPING SHIPPIT’S SOFTWARE
Inga Latham has more than two decades of experience, including at the likes of Yahoo, Lastminute.com, Ticketmaster, Commonwealth Bank and, most recently, Siteminder where she held the role of CPO.
In 2021, Inga was sixth in The Software Report’s list of the ‘Top 50 Women Leaders in SaaS’ and was named as one of the ‘Top 20 Female Cloud Leaders in 2021’ by Sociable.
MARKETING LEADER APPOINTED CMO AT SHIPPIT
Brett Chester has an extensive background in retail, and experience growing fast-scaling SaaS companies in Silicon Valley. After a decade in the United States where he helped lead the marketing functions at the likes of Replicon, Singular and Deputy, Brett returned to Australia to take up the position of CMO at Shippit.
Safety Storage Efficiency
Enhance the Safety, Capacity and Efficiency of your Storage Facility
Combilift’s range of electric forklifts, pedestrian trucks and straddle carriers combine powerful performance, emission free operation and a host of up to the minute technologies to offer the most efficient way to handle long loads up to 12 tonne.
Contact us to find out how Combilift can help you unlock every inch of your storage space and enhance the performance and safety of your operations.
• Safer Product Handling
• Optimise Production Space
• Improve Storage Capacity
• Increase Productivity & Output
• Enhance Profits
• Improve Sustainability combilift.com