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Supply Chain Solutions
CONTACT
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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.
FROM GOOD TO GREAT
How does a company go from good to great?
It’s a question addressed with great vigour in this latest issue of MHD Supply Chain Solutions, where we bring you a range of inspiring and thought-provoking stories that highlight the latest trends, best practices, and innovative solutions in the supply chain industry.
Our cover story delves into the transformation of leading online fashion and lifestyle retailer THE ICONIC’s supply chain operations. Reaching capacity at their fulfilment centre in Yennora, New South Wales, THE ICONIC seized the opportunity to reshape its supply chain with the help of consultancy Prological. Discover how this partnership has driven efficiency and innovation, helping THE ICONIC to continue delivering great customer service and delivery options.
Elsewhere, we explore Toll Healthcare’s new state-of-the-art facility in Richlands, QLD. In an exclusive interview, General Manager Phillip Milling shares insights into the intricacies of healthcare logistics and how Toll Healthcare differentiates itself in this vital sector. As a leading provider of healthcare logistics solutions, Toll plays a critical role in delivering lifesaving products to millions of people across Australia.
We also turn our attention to Brother International’s new Titan Range of industrial labelling printers. This exciting foray into the industrial label printing space demonstrates Brother International’s commitment to providing durable, high-volume solutions for businesses in various industries. Learn how these innovative printers seamlessly integrate into existing infrastructures, enhancing efficiency and productivity in the supply chain.
As always – this issue is full of great companies, great transformations, and great stories.
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.
COPYRIGHT
MHD magazine is owned by Prime Creative Media. All material in MHD is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material.
While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in MHD are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.
Edward Cranswick Editor edward.cranswick@primecreative.com.auGETTING STARTED WITH WAREHOUSING AUTOMATION
Vanderlande’s Roald De Groot, Director Warehouse Solutions
ANZ, explains how the logistics process automation in warehousing company can help businesses improve their operations and reduce costs by automating their facilities.
It’s a big step to introduce complex automation into a warehouse for the first time. This is particularly true when you operate in a segment that is not familiar with automated solutions. From the cost of the investment through to selecting and installing the right solution, there are many factors to consider. By forging solid relationships, we are supportive throughout the entire decision-making process and beyond.
When a business grows above a certain threshold, there are various benefits to introducing automation and moving away from a wholly manual operation – increasing efficiency being among the most notable.
The more stock keeping units (SKUs) a warehouse handles, the more order lines that have to be processed – and the more picks per order line that need to be completed. All these activities accumulate and begin to stretch existing resources. It’s also worth thinking about the distances operators walk to carry out various tasks in a manual warehouse. These can be quite considerable, resulting in wasted time and effort.
DEALING WITH LABOUR SCARCITIES
Automation can help to eliminate such labour-intensive activities, while providing greater accuracy and efficiency. Good systems can even assist in retaining staff. For example, our pick stations have been ergonomically designed to make life easier for a workforce. These issues are worth considering as today’s labour scarcities are having quite an impact on warehousing operations. So, the benefits for automation are
considerable, but what’s involved in making that initial step? Good planning and setting realistic goals are important when introducing any automated process. However, when you are looking to automate your operations for the first time, it could well be that you do not have your own project management team – it’s a task you and your colleagues have to fit around your “day jobs”.
The following question should also be considered: “What is the dot on the horizon that I want to reach?” There’s no doubt that it’s a challenge to think about tomorrow’s needs based on what is happening in your warehouse today. However, it’s vitally important to assess the size and scope of the automated solution required.
DRAWING ON EXPERTISE AND EXPERIENCE
This may seem daunting, but at Vanderlande we have the experience and expertise to start the journey towards logistic automation. We know exactly what data is needed, and how to analyse and present it as useful information to guide you in the decision-making process. In addition, our portfolio of solutions and products is extensive, so we’ll be able to find a solution that fits any specific business requirements.
Over many years, we have dealt with many different companies. These range from those presenting us with all the relevant information as a sound base for automation, to those with no idea of how to begin the process. We can also provide initial assistance through workshops and questionnaires that will guide even the most inexperienced management teams.
Our approach is not just about delivering support from the initial early contacts through to the moment we hand over the keys to a new system. We believe in building strong partnerships and working closely throughout the entire life
cycle of the automated solutions. That long-term commitment provides peace of mind, as well as great services, for example, making use of a Vanderlande on-site maintenance team, or offering training to in-house engineers. In addition, there is an extensive and sophisticated life-cycle service portfolio to draw upon.
SOLUTIONS THAT WORK
We recently implemented end-toend warehouse automation solutions for several companies that previously had manual operations. Automation has resulted in less physical movements for operators, which has in turn led to time savings across the entire process. In addition, there has been a better allocation of personnel to real value-added activities, which will lead to improved services.
Overall, that’s what good logistic automation is all about. And that’s why it’s the right choice for so many growing businesses in the food, fashion, and general merchandise warehousing sectors.
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STOCKLAND LOGISTICS LOCATIONS POISED FOR SUCCESS
Stockland reports that the logistics industry is facing unprecedented market conditions, bringing demand for high quality, well-located industrial property to an all-time high. Executive General Manager, Logistics, Tony D’Addona explains, “When it comes to property, the golden rule has always been about location and in logistics, it’s paramount – the industry is estimated to move four billion tonnes of goods across Australia and employs more than 1.2 million workers1, given the issues that we have faced through the pandemic, being close to economic centres where customers and workers reside is critical”.
As the Australian e-commerce sector continues to grow, so does the demand for logistics property with good access to major consumer markets.
DOUBLING DOWN ON DEMAND
Consumers’ expectations on free shipping, fast delivery, and free returns are creating mounting pressure on retailers and third-party logistics providers whose requirements for space and speed to market are rapidly expanding1.
In a recent report2, CBRE cites that for A$1 billion of additional e-commerce sales, an additional 70,000sqm of logistics space is needed and to offset the cost of adopting a just-in-case (JIC) inventory strategy, lowering transport costs will be a strong focus area for many logistics occupiers.
“You need to be close to road, rail and ports but you also need to be close to your end user, whether that is a business or consumer,” Tony continues.
Evidence of these market conditions can be seen throughout our logistics portfolio where vacancy rates are sitting an all-time low.
Asset Manager, Ian Sutcliffe, has seen high levels of interest and engagement from customers, “It has been great to deliver on our value proposition of being a trusted property partner for multiple
tenants who have expanded their operations across our portfolio”.
“We’re also seeing tenants proactively entering renewal negotiations and exercising options much sooner than in previous years given our properties are well-located within strategic logistics hubs” he continues.
LOCATION, LOCATION, LOCATION
In another CBRE report3, immediate order fulfilment and lack of land supply are dictating warehouse location decisions. While infill locations that can service same-day deliveries can generate premium rents, there are increasing opportunities for several last mile locations as populations grow and disperse.
Our properties are strategically positioned close to major consumer markets, infrastructure, and employment.
“Yatala Distribution Centre is a prime example of how location is key in the logistics sector. The modern estate benefits from its location within one of South East Queensland’s best logistics hubs having the flexibility to service both the Brisbane and the Gold Coast
markets,” says Tony,
“Most of our assets are in middle ring suburbs or close to major distribution arteries in Sydney, Brisbane, and Melbourne. We have invested near major existing population nodes and future growth corridors,” he continues.
THE STRONGEST LINK IN THE SUPPLY CHAIN
We’re leveraging our multi-sector capabilities to build on our already strong portfolio of 29 properties across Australia. And with a ~$6.4 billion development pipeline4 to create the next generation in logistics facilities, Stockland is perfectly positioned to help drive success for our customers.
Sources
1. Past lessons shaping the future, MHD, 21 November 2022
2. Logistics Special Report, The Australian, 23 November 2021
3. Sydney Industrial & Logistics Land Supply, CBRE, September 2021
4. Brisbane Industrial & Logistics Land Supply, CBRE, December 2022
5. Property Portfolio, Stockland, June 2022
6. Forecast end value on completion –Stockland FY22 Results
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OCCUPIERS MUST STAY CURRENT ON LATEST TRENDS
Colliers and Argon & Co experts say as Australia’s industrial real estate market changes significantly, occupiers must stay current on latest trends and adopt new strategies to take advantage of it.
Peter Evans, National Director of Industrial Advisory, Occupier Services at Colliers, notes that industrial real estate is becoming a mainstream asset class in Australia. As a result, the market is becoming increasingly competitive, with more occupiers vying for limited space.
“The strong demand for the industrial market has seen vacancy rates in Sydney fall to a historic low of 0.2 per cent in Q4 2022 with
approximately 1.6 million sqm leased in 2022,” Peter says.
“Melbourne has experienced a similar trend, with the vacancy rate falling to 0.6 per cent in Q4 2022 and about 1.9 million sqm of leased space in 2022.
“The combination of previous quarters’ strong take-up, industrial and logistics gross take-up reached a new record in 2022 with 4.85 million sqm leased, up three per cent from the 4.71 million sqm recorded in 2021. This is driving up demand for efficient and well-located industrial space.”
Limited availability has contributed to rising rents for industrial space across the nation, with Colliers’
data showing the rent increasing in Sydney during the final quarter of 2022 by 5.1 per cent representing a year-on-year increase of 24.9 per cent and with 3.6 per cent during the same time, representing a year-onyear growth of 20 per cent.
“The industrial sector has consistently outperformed other asset classes in Australia, seeing an increased focus on supply chain restructure and a shift towards repurposing underutilised assets as a way to match current demands,” Sean Mitchell, Associate Partner at Argon & Co, says.
“These trends are driven by changing tenant needs and evolving technology, such as warehouse automation, application of drones and autonomous robots, which are placing new demands on industrial real estate.”
To excel in the rapidly changing landscape of industrial real estate in Australia, occupiers must adopt a strategic approach that enables them to identify potential opportunities and threats, and tailor their strategies to meet their specific needs.
By staying current on the latest market trends, occupiers can capitalise on emerging opportunities while avoiding potential pitfalls.
Glenn Maskell, National Director of Industrial Advisory, Occupier Services at Colliers, notes that portfolio repositioning is a critical industrial real estate market trend.
“With changing market dynamics and evolving business needs, occupiers are increasingly looking to optimise their portfolios to stay competitive and agile,” adds Glenn.
“It can involve divesting underperforming assets, consolidating operations to enhance efficiency, or acquiring strategic properties that align with their business objectives. By repositioning their portfolios in this way, occupiers can unlock new opportunities for growth and better position themselves for success in the long term.”
WHAT IS PROCUREMENT? (AND HOW TO GET IT RIGHT)
Reto Fuhrer, CEO of RF Supply Chain Expertise, discusses the essentials of a successful procurement process – and why strong relationships matter more than cheap prices.
If you’re in the supply chain and logistics game, getting procurement right may seem a no-brainer. Procurement plays a critical role in the success of any organisation, ensuring the secure, timely, and cost-effective acquisition of goods and services required for smooth operations.
But there’s a big difference between wanting to get procurement right and knowing how to get it right.
In my experience, too many companies still prioritise basic purchase price over other criteria when conducting procurement. The focus of procurement should instead be on the security of supply, quality assurance, and optimal costs – encompassing the total cost of ownership.
There are many components to a successful procurement process – but they’re all undergirded by relationship management.
RELATIONSHIP MANAGEMENT IS A MENTALITY
For companies to successfully manage supplier relationships, there needs to be a change in mentality. Procurement professionals should view suppliers as business partners, adapting their mindsets to prioritise collaboration and shared success. While this shift can be challenging for some – especially those with decades of experience in traditional procurement – many can adapt with the right tools, training, and support.
SETTING UP THE APPROPRIATE PROCUREMENT ORGANISATION
An effective procurement organisation is essential for success. This organisation should have
a clear structure, defined roles and responsibilities, and efficient communication channels. It should be agile and flexible, allowing for quick decision-making and adaptation to the ever-changing market dynamics.
DEVELOPING A PROCUREMENT STRATEGY
A well-defined procurement strategy is crucial for achieving the main objectives of procurement. This strategy should outline the organisation’s procurement goals, methods for achieving them, and KPIs to track progress. It should also consider market trends, risks, and opportunities to inform decisionmaking and ensure a competitive edge.
DEFINING A STRATEGIC MATERIAL ANALYSIS
A strategic material analysis helps companies identify their critical materials and suppliers. This analysis should include an evaluation of the risks associated with each material, the level of supplier dependency, and the impact of potential supply disruptions on the organisation. Based on this analysis, companies can prioritise their procurement efforts and develop targeted sourcing strategies.
APPLYING THE RIGHT SOURCING STRATEGY
Sourcing strategies should be tailored to the specific needs of each material and supplier. Some materials may require a single sourcing strategy, while others may benefit from a multi-sourcing approach to reduce risk and ensure supply continuity. Sourcing strategies should be periodically reviewed and adjusted to reflect changing market conditions and business needs.
QUALITY CONTROL
Companies must clearly communicate their requirements and specifications to suppliers and have appropriate
quality control processes in place. Failure to do so can result in significant costs.
Small mistakes are often hard to avoid in the absence with strong on-the-ground information and understanding – and to get those you need to have confidence in your supplier relationships.
IMPLEMENTING A BESTIN-CLASS SUPPLIER EVALUATION PROGRAM
A robust supplier evaluation program is essential for ensuring the quality and reliability of suppliers. The TQRDCE model (technology, quality, responsiveness, delivery, cost, environmental & social responsibility) is a comprehensive framework for evaluating suppliers. Regular supplier audits should be conducted to assess performance and identify areas for improvement.
RELATIONSHIP MANAGEMENT WITH STRATEGIC AND KEY SUPPLIERS
Building and maintaining strong relationships with suppliers is vital for a successful procurement process. Here are a few key methods that I’ve utilised over the years to build and secure strong supplier relationships:
• Supplier management: This involves developing a structured approach to managing suppliers,
including regular communication, performance reviews, and collaborative problem-solving.
• Supplier development process: Implementing a continuous improvement program that helps both parties identify areas for improvement, share best practices, and foster innovation.
• Simultaneous engineering: Early involvement of suppliers in the product development process can lead to better integration, reduced lead times, and lower costs.
• Digitalisation of the procurement process: Leveraging digital technologies can streamline information exchange, improve transparency,
and enhance collaboration.
• Regular exchange of information: Sharing market insights, trends, and forecasts can help both parties make informed decisions and adapt to changing market conditions.
In my experience, organising an annual supplier day is an excellent way to strengthen relationships, share knowledge, and celebrate successes. Such events can include trend presentations, workshops to address current challenges, and awards for outstanding suppliers. This collaborative approach can lead to stronger, more resilient supply chains and long-term business success.
At RF Supply Chain Expertise, we have years of experience in building
relationships for optimal procurement processes. In an increasingly complex and uncertain supply chain environment, there’s no margin for error. If you need help getting your procurement strategy right, touch base with us today.
THE STRONGEST LINK IN THE SUPPLY CHAIN
We’re leveraging our multi-sector capabilities to build on our already strong portfolio of 29 properties across Australia. And with a ~$6.4 billion development pipeline4 to create the next generation in logistics facilities, Stockland is perfectly positioned to help drive success for our customers.
ARGON & CO APPOINTS
NEW PARTNERS
Argon & Co has announced the arrival of new ANZ Partner, Colleen Grady and the promotion of Stephan Mang from Associate Partner to ANZ Partner.
With more than 500 consultants spread over 16 offices globally, the strategy and transformation of operations company says it is strengthening its capabilities with these two new appointments.
Based in the Sydney office with a remit across the region, Colleen brings a wealth of experience from the retail and FMCG industry alongside an expansive career in consulting.
“I’m excited to bring Argon’s global retail, manufacturing, and supply chain insights to Australia and support organisations with transformations in automation, analytics, and efficiency,” Collen Grady, newly appointed ANZ Partner, says.
After graduating from global top tier INSEAD with an MBA, Colleen built a track record of successful transformations starting her career with Bain & Co and more recently as a Partner at Partners in Performance.
Colleen also spent more than a decade in industry as a Senior
Executive, working across household retail brands in the UK and Australia including Tesco, Woolworths, and Metcash.
“I am delighted to have been promoted to Partner and look forward to being part of the continued growth of the ANZ business, including the dayto-day leadership, growing the Manufacturing offering and further developing The Academy service offering,” Stephan Mang, newly promoted Partner, adds.
Having split his career between industry and consulting, Stephan is equipped with more than 20 years of global industrial and consultancy experience within
FMCG, Pharmaceuticals and Chemical organisations, bringing the knowledge and dynamics of aligning supply chain requirements to achieve business outcomes.
“These appointments come at a time of continued growth in the region,” explains Paul Eastwood, Managing Partner of Argon & CO ANZ.
“We see an incredible opportunity to grow our presence and capabilities whilst maintaining strong relationship and our reputation in core sectors. Most importantly Colleen and Stephan will no doubt play an important role in shaping the ANZ business, bringing new ideas and thinking to how we operate.”
THE RISE OF HANGCHA FORKLIFTS
A rich history and strong values undergird Hangcha’s growing success – in Australia and around the world.
Founded in 1956, Hangcha has a rich history of development and innovation. Originally established as a state-owned company, it transformed into a privately-owned organization in 2000. Over the past 60 years, Hangcha has evolved from a small business to one of the leading global material handling equipment manufacturers, both in China and around the world. This success can be attributed to the hard work and support of its employees, determined management, and ongoing innovation efforts.
In China, Hangcha has earned plaudits for its success. It has earned spots on the list of the 1000 ‘Biggest Enterprises’, the top 500 ‘Most Competitive’, and the top 500 ‘Biggest Private Enterprises’, testaments to the company’s solid direction.
Hangcha currently manufactures more than 250,000 units of forklift trucks and warehouse equipment annually in its state-of-the-art factory in Li-an, Zhejiang province. To meet the anticipated growing demand for its products in the coming years, Hangcha is further expanding its production capacity.
Hangcha Australia opened in November 2022 as part of Hangcha’s globalisation strategy. It will provide high-quality products and professional services to its dealer network in Australia and surrounding areas.
By having local representation Hangcha Australia will hold stock and spare parts for our national dealer network with speed to market the number one priority.
Hangcha’s motto – “Make handling easier!” – encapsulates its commitment to delivering the best solutions for material
handling needs.
Hangcha’s culture is deeply rooted in the values of courage, passion, innovation, and integrity. These values serve as more than mere buzzwords; they form the foundation of the company and guide its decision-making processes. Hangcha’s mission is to make material handling easier, and its vision is to become the best forklift truck manufacturer in the world.
Hangcha’s core values of integrity, responsibility, and sharing further reinforce its commitment to excellence. With over 40 years of experience in the development and manufacturing of forklifts, Hangcha has specialised production expertise. The company’s brand management has strengthened its brand value over the course of its 60-year history.
Group management is another key aspect of Hangcha’s operations, with a collective-oriented mindset to create a consistent pattern of interest and development. Hangcha also emphasises international integration, which involves integrating the resources of the industry supply chain and approaching the global market with an international perspective. This commitment to integration ensures that Hangcha remains a competitive force in the material handling industry, backed by a strong culture and a clear vision for the future.
Hangcha’s commitment to innovation, quality, and customer satisfaction has allowed it to place on the top 10 global list of material handling equipment manufacturers.
This year, Hangcha Australia is launching its first-ever End of Financial Year Stock Clearance Sale. With over 200 units in stock, customers can take advantage of a wide range of products, including
Motorized Pallet Trucks, Walkbehind Electric Pallet Movers, Lithium-Ion Walk-behind Pallet Movers, 2.5t & 3.5t Gas and Diesel Counterbalance, 1.8T, 2.5t & 3.5t Rough Terrain (both 2WD & 4WD available), and 2.5t & 3.5t Lithium Counterbalance Electric models. ■
Hangcha Australia will also be participating in CeMAT 2023.Visit Hangcha at stand L15 to experience firsthand the cutting-edge material handling solutions that have propelled the company to its current position as a top global manufacturer.
FROM GOOD TO GREAT
As one of the Australia and New Zealand’s first pureplay e-commerce providers, THE ICONIC prides itself on setting the industry benchmark for customer service and delivery options.
What started with a small team and a big ambition to redefine the future of retail in Australia and New Zealand, THE ICONIC is a tech-driven, customer-first brand that now boasts more than 2.2 million customers.
Founded in 2011, THE ICONIC is Australia and New Zealand’s leading online fashion and lifestyle platform. With more than 20 million visits per month and five million app downloads, the business reported a 15.7 per cent growth year-on-year and announced revenue of more than $759 million in 2022.
Underpinning any pure-play e-commerce provider is an agile and flexible supply chain – which THE ICONIC continues to invest heavily in.
“Being able to find the stock, get it picked, packed and despatched superfast is critical for a business like ours,” Erica Berchtold, CEO at THE ICONIC tells MHD.
OVERCOMING GROWTH CHALLENGES
Like many e-commerce retailers, THE ICONIC has been on an exponential growth curve over the past few years – resulting in a requirement to rethink its supply chain and fulfilment operations.
On peak days last year, THE ICONIC processed more than 110,000 orders and up to 250,000 items. You need to be a mature, sophisticated and capable business to do this. However, with ambition to deliver this, not just on peak days – but every day – THE
After THE ICONIC reached capacity at its fulfilment centre in Yennora, New South Wales, the leading online fashion and lifestyle retailer used the challenge as an opportunity to rethink its supply chain operations with consultancy Prological. MHD finds out more.
ICONIC knew it needed to transition from good, to very good, to great.
But where do you look to for ideas, inspiration and a pathway forward when you are already, even at a global level, at or near the very best in industry? How do you benchmark? Who do you compare yourself to?
As a result, THE ICONIC started working with ANZ supply chain consultancy Prological to work on its next phase of fulfilment strategy and expansion.
Initially, THE ICONIC engaged
Prological to discuss future requirements around expanding its fulfilment capabilities over the next few years – looking at options for a larger site in New South Wales and/or a strategy with distribution centres in other states.
However, once the work began THE ICONIC had a more urgent issue to deal with.
“Off the back of unprecedented growth, we suddenly hit capacity challenges at our fulfilment centre (FC) in Yennora and we needed some urgent advice on how to handle that situation,” Erica says.
With a pressing need to deal with current capacity issues, Prological shifted its brief and immediately started working with THE ICONIC on a short-term solution.
“The thing I really like about Prological is that they are responsive, they are practical, and they integrate very quickly with the business. They are part of the team; they roll up their sleeves and get stuck in,” Erica says.
OPTIMISING THE ICONIC’S CURRENT FACILITY
While Prological was initially brought on board to discuss long-term fulfilment centre plans, after starting to analyse current operations it became clear there was some major cost saving and efficiency gains to be made in the short-term.
“Through our work with Prological we’ve gotten on top of our capacity issues. We’ve also introduced a more robust S&OP process and we’ve reworked our existing facility which means we don’t need to expand in the
short term,” Erica says.
According to Erica, along with the above benefits, which she describes as “pretty big revenue-saving, profitdriving, cash-preserving initiatives”, THE ICONIC now has the time needed to really work out what the best solution is for the next stage of investments into its supply chain.
“I’m really glad that we didn’t end up racing into our expansion plans. With the economic conditions as they are, things are starting to slow down a little bit for everyone. So, it’s crucial to have flexibility and to be able to sweat the assets you already have. I think if we had gone full speed ahead with our capacity plans, we would have too much space for what we need right now,” she says.
For Erica, working with a consultancy she can trust is crucial to success. “Prological genuinely wanted what was best for our business. They didn’t try to push us into a new FC to feather their own nest. As a result, I really love working with Peter because I feel that I can trust what he tells me. He has a genuine relationship with us and helps us understand what our current and future requirements really are,” she says.
One asset THE ICONIC was able to better utilise was its Automated Storage and Retrieval System (ASRS), which at the time was only being used at 20 per cent of its capacity.
“Prological helped us look at the kinds of products we were putting in our ASRS and it really helped us drive productivity. We weren’t as productive as we should have been with some of the existing technology we had, but
Prological guided us through this and helped us really sweat our assets,” Erica says.
THE ICONIC has also invested in Automated Mobile Robots (AMRs) at the Yennora FC and introduced an inbound hub to manage returns, while also significantly increasing the throughput capacity at the main fulfilment centre.
“Peter and the team gave us a lot of advice on how to relay our current fulfilment centre and helped us identify which functions we could do offsite in the inbound hub we introduced in December 2022,” Erica says.
A further advantage THE ICONIC realised after relaying its current fulfilment centre with Prological was added safety benefits.
“It’s super, super important in a big fulfilment centre like ours that safety is paramount. By being as efficient as we could and not being so congested in our FC, it has allowed us to be even safer and to really amplify our safety culture in that facility,” Erica says.
OPERATIONS TO THE FOREFRONT
Every week, THE ICONIC has a trade meeting with marketing, sales and operations. Prior to the work with Prological, Erica says the operational
part of the meeting was always at the end of the meeting.
“We would always be running out of time and wouldn’t give operations the time it really needed. Since the work we’ve done with Prological, we now kick off that meeting with operations. We’re now asking crucial questions such as: ‘What’s our capacity? What was our on-time despatch last week? What was our on-time delivery?’ Our operations processes and team are absolutely front and centre now,” she says.
Prological helped THE ICONIC establish more processes and communication pathways that enabled the operations and supply chain team to have much greater visibility and encourage more collaboration between sales, marketing and operations.
“Our ops team certainly have benefited from our engagement with Prological because it helped put them front and centre,” Erica says.
Due to the work spent on optimising its current FC, THE ICONIC has been able to roll out some new initiatives including its Fulfilled offering and expanding its marketplace offering.
“There’s no way we could hit the sort of volumes that we are now without going through this process. We’ve got on top of our capacity issues
“
I’m learning more about supply chain than I ever thought I’d need to. I’ve loved diving into it, and that’s because Prological were here riding shotgun with me.
THE ICONICWorking with Prological has helped THE ICONIC put operations front and centre, says CEO Erica Berchtold.
and reset the way we do things in the FC. I don’t think we would have been able to launch initiatives like Fulfilled by THE ICONIC if we hadn’t gone through this process with Prological over the past 12 months,” Erica says.
For Erica, the work with Prological has led to a significant shift in priorities for the leading retailer.
“We’re a much more operationally focused business now. While we are still led by assortment and technology, operations have come on leaps and bounds and are now standing shoulder-to-shoulder with those other core areas of our business,” she says.
WHAT’S NEXT FOR THE ICONIC AND PROLOGICAL?
By delaying its fulfilment centre expansion program, Erica says the business is now in the advantageous position of being able to analyse more data and make a much more informed decision about the future.
“We’ve really bought ourselves some more time to analyse trends and now we’re looking at a roadmap for 2026 and beyond. We have the breathing space to ask the right questions and build the best future for THE ICONIC’s customer and their delivery requirements,” Erica says.
When reflecting on working with Peter and the team, Erica says she’s a
much better CEO after having engaged Prological.
“I’m learning more about supply chain than I ever thought I’d need to. I’ve loved diving into it, and that’s because Prological were here riding shotgun with me,” she says.
The feeling is mutual, with Peter echoing Erica’s sentiment and saying he has loved working with The ICONIC because it’s expanded his idea of what it is to be a great business.
“While I’m very proud of what we’ve been able to contribute to THE ICONIC, it really does come down to their commitment and culture of continuous improvement. They are truly committed to innovation, and it’s a place where all ideas are valid. Erica really drives this across the entire business,” Peter says.
For Prological, the opportunity to work with a global leader in online retail and add value to their business has been a fantastic journey. “To work with a business of such incredible scale has enabled us to build knowledge and capability that we have thought about for a long time. We’ve needed the right client to explore our most innovative ideas with and we’ve been able to deliver great things because that ethos of innovation and driving continuous improvement is so aligned with who THE ICONIC is,” Peter says.
According to Peter, the key to the success has not been Prological’s ideas, nor challenges, but Erica as a curious leader.
“Curiosity drives a culture that explores and understands the value of problem solving. In turn this prevents THE ICONIC getting stuck at problem identification. Problems are everywhere, solutions are rare. Erica drives a business where problem solving is a very high value and the gateway to an improved tomorrow. It is because of this culture that Prological’s approach has been successful. We have been able to develop new ideas and innovations with their team, unlock new ways to approach old tasks and in this we, the collective team of THE ICONIC and Prological, have achieved great success, with much more to come,” he says.
Erica closes by advising other executive leaders who are looking at transforming their supply chain to look at the people, structures, and processes around the systems already in place.
“Be curious about supply chain and logistics. Even if it’s not your area of expertise, there’s a lot you can add and there’s even more you can learn,” she concludes.
Prological continues to work with THE ICONIC on its future fulfilment requirements and strategy. ■
COLLIERS BUILDING UP BRISBANE
David Brisk (Director Industrial at Colliers) recently took over leadership of the company’s Brisbane team. He spoke to MHD about his new role, and what he and his colleagues are trying to achieve in Australia’s third largest city and its neighbouring cities and towns.
David Brisk has been working for the Colliers Brisbane Team for close to five years. In this time, he’s moved upward from Executive to Senior Executive, then to Associate Director, and now Director and leader of the Brisbane Industrial business at the company.
In this new role, David and his team of 12 are growing the industrial arm of the business with a focus on expanding client relationships, building Colliers’ strong presence in the sunshine state and elevating its offering in the Brisbane market.
Ensuring the team is well equipped to work with the wider Colliers business and internal collaboration are what’s making all of this possible.
SERVICING THE SUNSHINE STATE
David says the main change he’s had to make in his new role is to collaborate more with his interstate peers and continue to grow and maintain key client relationships within the Queensland market.
“I’m sitting on the Capital Markets team for Queensland and representing it on a national level,” he explains. “I’m also working hard to grow key institutional relationships, and ensuring myself and my team are well placed to be able to service these clients daily.
“We’ve been working hard to ensure our clients know that we’ve got full market coverage, and we service not just Brisbane but Queensland as a whole. We have offices in Toowoomba, Townsville, Sunshine Coast, Cairns, and the Gold Coast industrial services. We
can assist and service our clients anywhere and anytime within the state.
“I want our clients to know that we’re proactive and get the job done. Our goals stem from our hard-working attitude and detailed understanding of the market. Our market intel, relationships and data allow us to ensure our clients are well assisted to make educated decisions. We’re prepared to go above and beyond. Collaboration and having strong relationships with key landlords and occupiers in the market are essential to growing and servicing our clients.”
REGULATING SUPPLY AND DEMAND
One of the biggest challenges David notes in the current market is keeping tenants up-to-speed on how fast the rents are moving. Off the back of monstrous uptake rents are moving so frequently that it’s hard to lock down a deal while occupiers work through their approval processes.
There’s a lack of industrial building and land supply in Queensland which is a consistent theme across Australia. Vacancy rates currently sit at 0.8 per cent and are set to decrease significantly in the next couple of months.
David says more than 1.6 million sqm of leasing take-up occurred in the last 24 months as demand continues to increase to unprecedented levels. “This is the equivalent of the previous 4.5 years of take-up.”
Currently there are challenging market conditions, which are a
combination of low levels of leasing supply and rapidly increasing interest rates, putting downward pressure on values and upwards pressure on rents.
“Until the interest rate hikes settle, we are in a price discovery phase,” adds David. “We anticipate that once the debt markets settle, and we have a clear understanding of the market outlook, it will be game on again. There is an incredible amount of onshore and offshore capital looking to be placed in the industrial and logistics sector, and we are at the front and centre of it here in Queensland.
“What’s driving the massive surge of rental growth is simply demand outstripping supply and investors requiring higher returns in these uncertain times. Our clients need the continued surge in rental growth to ensure their developments are feasible. Build costs are higher than ever, land values are yet to come-off and yields continue to soften, all whilst investors are seeking larger
returns, making it a very challenging balancing act.”
SEALING MAJOR DEALS WITH INVESTORS
The Colliers Brisbane team stays close to the market so it can better serve its clients.
“Our clients want to deal with us given our backlog of occupier enquiry, detailed knowledge of the industrial land market, key relationships with decision makers, and because we have a collaborative ‘team approach’ culture both locally and nationally. This means we can cover more ground faster and more efficiently than our competitors.
“Just recently we sold an asset on behalf of a client for $16.85 million to an owner occupier who we had originally sold the property in the middle of COVID for $11 million. We had specifically targeted the incoming purchaser with a detailed strategy, which in turn drove the best possible result for our client.
“This wouldn’t have been able to happen without a proactive approach to selling real estate. This approach also resulted in a cheaper occupancy outcome for the buyer than if they
were to pursue a leasing option in the current constrained market.”
GOING FOR GOLD
Interstate investment in Queensland’s industrial sector is becoming more commonplace. Many groups have noted the sunshine state’s growing economy and the prospect of further growth with the 2032 Olympic Games, which will be held in Brisbane.
“These groups expect to have a golden run for the next 10 years,” David says.
“Given the lack of industrial land availability, I think that’s putting positive pressures on prices because it’s hard to get into the market here. Many of the interstate groups who come to Brisbane or the Gold Coast to invest are shocked by how tight and difficult it is to get into the market here.
“Just as Sydney came into its own following the 2000 Olympic Games, I think the same will happen with Brisbane. The Queensland government infrastructure projects right now account for nearly $59 billion across 10 key projects, which will undoubtedly grow the Queensland economy and contribute significantly to the demand for industrial sector.”
Colliers’ Brisbane Industrial team led by David Brisk consists of market leading experts dedicated to servicing their clients needs and arming them with the right tools to make informed property decisions.
David concludes: “our door is open for business, and our team welcomes anyone with a requirement or wanting more information about the Queensland industrial sector to get in contact.” ■
“
More than 1.6 million sqm of leasing take-up occured in the last 24 months as demand continues to increase to unprecedented levels.Many investor groups have noted the sunshine state’s growing economy and the prospect of further growth with the 2032 Olympic Games, which will be held in Brisbane.
KÖRBER UNVEILS SOLUTION AT ELEVATE 2023
Joe Couto, Executive Vice President Global Robotics & 3PL at Körber Supply Chain Software, speaks to MHD about the latest solution the company unveiled at its annual conference, Elevate 2023 – held across the world.
Körber has showcased its Robotics-as-a-Service program at both of its Elevate conferences in the Americas and Down Under. This solution is a flexible automation technology designed to empower users by increasing efficiencies and stabilising an organisation’s operations.
It provides simple access to a global network of robotics service partners for every business size and industry, emphasising the value Körber’s puts on collaboration and dedication to meeting its customers’ needs.
Buyers of this product can reduce their business’s operational costs and time to deployment and invest any remaining capital in other parts of their enterprise by allowing them to purchase robots ‘as-a-service’ rather than in one large upfront payment.
TACKLING CHALLENGES WITH AMRS
Operational costs reduction is the result of introducing flexible automation such as Automated Mobile Robots (AMRs). Körber offers Person to Goods/ Pick Assist AMR, Goods to Person, Autonomous Forklift, and sortation solutions. These are some of the technologies that can be implemented within 60 days and also without changes to the facility layout, which is responsible for guiding rapid deployment.
For years, warehouses have been struggling with labour shortages, increased labour costs and disengaged employees. There was a need to ‘do more with less,’ utilising the fewer available employees more effectively.
“From our customers’ experience,
workers are more satisfied, as they can concentrate on what they do best while the robots do the ‘walking,’” Joe Couto, Executive Vice President Global Robotics & 3PL at Körber Supply Chain Software, says.
“The use of novelty technology is also an incentive for younger workers to pursue jobs in warehousing. Additionally, the rise of e-commerce and retail caused a growth of fulfilment. With the number of SKUs and products shipped daily, a solution was needed to cope with this volume efficiently.”
As with smartphones, technology evolves and matures rapidly. This means robotics have become more affordable – also under the aspect of a RaaS offering.
Businesses now don’t have to make upfront capital investments but can instead hire the robots and have the flexibility to scale up and down (hire more or fewer robots) with fluctuating business needs.
In a nutshell: they have been recognised and have a proven track record of being an efficient and scalable
fulfilment solution.
Lastly, COVID has also accelerated this development by increasing awareness. Safety measures such as social distancing or reduced employee numbers due to sickness have contributed to the need for such a solution.
USING RAAS BOTS FOR PEAK PERIODS
Not having to make a major capex investment and having a monthly operating expense model opens the market up in many ways because it makes the technology accessible to many organisations.
For large businesses, they can deploy technology without having to wait for budget planning for capex funds. They can also deploy AMRs quickly, have no budget cycles, and it’s easier to do a proof-of-concept smaller scale project to prove the value and ROI.
“Customers are more likely to add short term RaaS BoTs for peak periods versus capex purchase,” explains Joe.
“Most systems Integrators don’t
offer a RaaS program and that’s why our solution provides customers with a competitive advantage. We offer contracts with a fixed fleet, but customers can also choose a flex fleet of BoTs for peak periods.
“We can combine conveyors, pick to light and other accompanying solutions with the RaaS program, and combine SaaS and RaaS into one monthly payment.” ■
KEEPING TABS ON INNOVATION
Bas Schilders, Principal Consultant at Fuzzy LogX, now part of Argon & Co, recently travelled to Chicago to attend Promat 2023. Here, he shares with MHD some of the cutting edge solutions he saw – and why constant industry engagement is key to staying at the forefront of the industry.
As warehouse automation technology continues to advance, it is essential for industry professionals to remain current on the latest trends and developments. By attending tradeshows like Promat –and engaging with innovations from around the world – Bas Schilders and the Fuzzy LogX team are well-equipped to navigate the dynamic landscape of warehouse automation.
Bas recently attended Promat 2023 in Chicago, a major supply chain and logistics tradeshow. At this event, Bas discovered new developments and technologies that are making waves in the sector.
“Every year, there’s something new.” Bas says, reflecting on the latest innovations he observed at Promat 2023. With two major conferences in the US – Modex and Promat –alternating each year, Bas and his
team make it a point to attend both events to stay up-to-date on industry advancements and identifying when they are mature enough for the ANZ market.
Bas cites the example of a company called Tompkins Robotics that he first encountered at Modex in 2018. “At the time, they were novel.” Fast forward five years, and Tompkins’ sortation robots have become a staple in the USA, with many system integrators incorporating them into their solutions; Tompkins also now has a distributor in Australia.
Speaking of system integrators, Bas noticed a significant presence of system integrators at Promat 2023, a concept not commonly seen in ANZ. These companies take various components from different automation suppliers and create a cohesive, working solution for clients. They utilise their own
warehouse execution system (WES) that connects to all the different automation components, orchestrating tasks, material flows, and prioritisation.
During his time in the USA, Bas also visited three different DC operations, witnessing the impressive work of system integrators firsthand. “Two of these sites I went to had a similar setup: conveyors from brand ‘A’, sortation system from brand ‘B’, with the warehouse execution system that sits above that and then connects to the WMS,” he recounts. This approach of combining different components and technologies is a growing trend, and Bas believes it is bound to become more prevalent here as new vendors and technologies enter the market.
The challenge that many clients face is finding a way to orchestrate “islands of automation’, where different components are sourced from various suppliers. Bas notes the importance of an orchestration layer that manages the WCS of each and all components, such as AMRs, sortation, picking, and conveyor systems. This layer allows these components to work together effectively and align with the priorities set by the WMS.
He explains that while system integration used to be more prevalent in Australia, the concept is now re-emerging. Larger US-based system integrators are expressing interest in entering the Australian market. This development has the potential to change the way businesses approach warehouse automation in the country.
When asked if Fuzzy LogX might have a hand in bringing system integration to Australia, Bas clarifies that while they may assist in connecting customers with system integrators, they will not be directly
involved in the integration process. Their primary focus remains on maintaining independence and acting as a “voice of reason” for their clients.
Fuzzy LogX’s role will be to facilitate and help customers navigate the system integration process, ensuring that proposed solutions are fit for purpose and tailored to the clients’ specific needs. This approach allows Fuzzy LogX to remain objective and unbiased, ensuring that the best solution is chosen for the client, rather than one that may benefit the system integrator from a margin standpoint.
As system integration gains traction in Australia, Fuzzy LogX’s expertise will be invaluable in guiding clients through the complexities of warehouse automation and ensuring that they select the most suitable partner for their businesses.
Systems integrators aside, striking new developments that Bas had the opportunity to witness at Promat included robotic container unloading and the first autonomous picking robot.
In the past, automated container unloading systems focused on similarsized cartons and used simple suction technology to remove items from containers. However, as Bas explains, “What we saw is two new solutions on the market, one called the Dill, and one called Stretch from Boston Dynamics.” These robot-based solutions can handle more diverse carton sizes and require
minimal human intervention.
Speaking about the Dill, Bas notes that “it would drive into a container by itself and start to unload and pick but requires a person to unload the first few metres manually and to be supervised by a human during operation.” On the other hand, Stretch, developed by Boston Dynamics, is fully autonomous and capable of adjusting its actions in response to errors – such as dropped items – without human assistance. “Stretch actually takes a step back, has the vision technology to re-assess the situation again, then bends down and picks up the case it dropped.”
When comparing the efficiency of these robotic systems to human labour, Bas notes that one unloading robot is generally slower than having two people unloading. “It’ll be probably half the performance of a two-person team,” he says. “But it does this consistently, right?” The advantage lies in the robot’s consistency, ergonomic benefits, and reduced health and safety risks. Furthermore, robots can work multiple shifts and operate side by side, addressing labour shortages in the container unloading industry. This also applies to the autonomous picking robot from Agile Robotics. It is the first of its kind and can pick up cartons or totes from a normal rack location and drop it onto whatever destination is required, be it a conveyor, trolley or connecting it to another
robotics system.
Bas emphasises the potential of solutions like Dill, Stretch and the Agile Robotics to fill the gaps in the labour force: “We recently had a session with one of our clients where they said, ‘Look, the business case is not driven only by investment. The business case is driven by the fact that people just don’t show up. And we need to get stuff out the door.’” By providing consistent performance and minimising health and safety risks, these innovations pave the way for a more sustainable approach to container unloading and order picking.
The ever-evolving world of warehouse automation and logistics requires staying informed about the latest innovations and trends. Fuzzy LogX, with its vast experience and well-established relationships with industry leaders, is the go-to choice for businesses seeking expert guidance in this dynamic field.
As Bas points out, Fuzzy LogX has been building relationships with vendors and attending international events for years, gaining valuable insights and access to the “inner circle” where the most exciting developments take place. This constant engagement with industry leaders keeps Fuzzy LogX at the forefront of new technologies and maturing solutions, ensuring clients receive the most up-to-date advice and solutions available. ■
KEEP ON TRUCKING
Why Australia trucking company Simon National Carriers puts its trust in the safety and reliability of Toyota forklifts.
Simon National Carriers’ origins trace back to the 1920s when it began as a timber company. By 1973 it had expanded its business to include trucking and transport.
In the decades since it has evolved into the Australia-wide operation it is today, with depos across the nation offering a diverse range of services from warehousing to project logistics and fleet operations.
To keep on trucking, it has entrusted itself to the exceptional safety, reliability and sustainability of Toyota Material Handling Australia (TMHA); helping keep its warehouses running at peak operational capacity.
Simon National Carriers recently purchased a fleet of 40 Toyota forklifts split between 7700 electric reach trucks and 32-8FG25 gas counterbalance forklifts, to be deployed among its
extensive array of depots across the country.
Quality forklift equipment is of particular importance to Simon National Carriers, who run a start-tofinish service for its customers where they will store stock once it has been received from the docks and will keep it stored in their warehouses until it is required by their customers.
According to Simon National Carriers’ assistant fleet manager Scott Horwood, in recent years the trucking specialist needed to upgrade its forklift fleet and canvassed the products from a range of brands to find the equipment that best suited their needs.
Following an exhaustive testing process, Simon inevitably settled on Toyota for both its reach trucks and counterbalance forklifts, with a number of features standing out. Scott says a
number of features stood out.
“Toyota was definitely one that I liked from a point of view of what they offered in their reach trucks,” Scott says. “Toyota offers what is called a sit-stand-lean product where they can sit down or fold the seat up and stand up.
“For me that was a big bonus, in the way it would suit our fleet. If we needed to move a forklift from depot to depot, we didn’t have to worry about whether it is a sit-down or stand-up forklift.
“Some operators don’t like to sit down all day. It can be fatiguing on their body. Standing up all day can be the same. It gives the operators flexibility on how they go about their day-to-day business.”
Combined with the reliability and zero operating emissions of the reach
truck’s electric powertrain, the TMHA offering was too good to pass up.
The gas counterbalance forklifts also impressed Simon thanks to a couple of factors including the safety features and easy maintenance of the 32-8FG25 units.
“[TMHA has] a product that offers everything Toyota – from bumper to bumper, all the parts are Toyota,” Scott says. “That is a pretty important thing when it comes to maintenance. No other product could offer that – Toyota genuine right throughout.”
“The other thing they offer is the System of Active Stability (SAS) safety system. It is a bonus for the operators because it means the operators are less likely to put the forklift in a predicament where it is going to roll over. It’s a really good safety system –it may help prevent an accident before it happens.”
Scott also praised the inbuilt weight indicator and speed limiter features as bonuses, while the supportive and ergonomic design of the machines have been particularly well received by warehouse workers.
“You don’t think that when it comes to a forklift, but I’ve spoken to the
operators and they say that these are really good machines, they feel comfortable after working 10 hours a day.
“And that’s really important, you have to look after the guys that use them, you don’t want them to be fatigued, you don’t want them to be unsafe.”
A strong relationship has been fostered by the Simon team and TMHA, with TMHA Queensland major account manager Martin Gross helping to facilitate the sale of the correct equipment thanks to his 35 years of experience with Toyota products.
Martin says the legendary reliability and class-leading safety of Toyota forklifts was a big factor in convincing Simon to increase its fleet, after seeing the consistently excellent performance of the machines over a number of years.
“The reliability and safety were key factors to their decision making this time,” he says. “Safety is critical, and it’s critical to the industry really. We could offer some things that their competitors couldn’t.”
Martin adds that the relationship with Simon is cherished by TMHA,
and that he was looking forward to furthering their strong partnership.
Scott remarks that Martin has been a treasure trove of knowledge for Simon – no doubt thanks to his 35 years of experience around TMHA equipment –and that he has always been on hand to assist in any way possible.
“Martin’s been great right from the get-go,” Scott says. “His knowledge of the products is second-to-none, he knows his products back-to-front.
“Dealing with Martin has been really easy, it’s been smooth, and he’s tried to help us in every way possible, even down to making sure the forklifts are delivered to the right depot.”
At the end of the day, Simon needs forklifts that work every day and are built to last, which Simon has found in Toyota forklifts.
“The machines are brilliant. They just keep going and going and going. They’re good, solid forklifts that are built to last. They’re backed by the factory and the service is there to back it up.” ■
For more information visit www.toyotamaterialhandling.com.au or freecall 1800 425 438.
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HEALTHY LOGISTICS
Toll Healthcare, a leading provider of healthcare logistics solutions, is set to open a new state-ofthe-art facility in Richlands, QLD. Phillip Milling, General Manager of Toll Healthcare, explains the significance of healthcare logistics and how it sets itself apart from other forms of logistics.
“Healthcare logistics is important because everyone uses it, from babies to people in their 90s,” Phillip says. “The range of products we typically handle on behalf of customers ranges from vaccines, medical devices, to a whole range of different pharmaceutical drugs,” Phillip says.
Phillip says key differences for healthcare logistics – aside from the challenges of other logistics operations – lie in the high level of licensing and compliance, as well as the precision required in handling the goods. “We’re going to be licensed by the Therapeutic Goods Association (TGA) and have what’s called GMP (Good Manufacturing Practice) licensing. Some of our
customers require us to have that to receive products before we distribute them,” he adds.
Phillip emphasises the importance of accuracy in healthcare logistics. “A lot of things you order online are about speed to market, whereas ours is all about accuracy. We work on 100 per cent accuracy in everything we do. We tell people, ‘Don’t rush it, just get it right.’ The last thing you want to do is send something like a vaccine or a medical implant out, and someone’s on an operating table, or critically ill, and they get the wrong drug or the wrong implant.”
To ensure accuracy and compliance, Toll Healthcare employs a dedicated team of quality assurance professionals. “We have a team of seven quality assurance people, purely focused on our quality assurance processes.
Toll Healthcare, is a distinct operation within the larger Toll Group, and has come a long way since its inception in 2017. The Healthcare Logistics for Toll expanded significantly when Toll
acquired CSL’s distribution business, which had warehouses for distributing their products in each major capital city. This acquisition laid the foundation for the healthcare logistics business that Toll Healthcare is today.
STATE-OF-THEART FACILITIES
Toll Healthcare is currently in a growth phase, with plans to commission new warehouses not only in Brisbane but also in Melbourne and Perth. They already moved to a large warehouse in Sydney a few years ago. Phillip emphasises the importance of having state-of-the-art facilities to meet the demands of their customers and grow the business in the healthcare sector.
The ongoing investment in new facilities reflects the company’s dedication to meeting customer demands and providing the highest level of service in the industry.
The new Richlands facility in Queensland is poised to further strengthen Toll Healthcare’s logistics
Phillip Milling, General Manager of Toll Healthcare, talks to MHD about the company’s new facility in QLD, the intricacies of healthcare logistics – and what sets Toll apart.Toll Healthcare is currently in a growth phase, with plans to commission new warehouses not only in Brisbane but also in Melbourne and Perth.
MHD SUPPLY CHAIN
capabilities in the face of ongoing challenges and opportunities.
The new facility at 262 Orchard Road, Richlands is conveniently located just 24km from the Brisbane CBD and within proximity to some of Brisbane’s busiest and most crucial linkways.
With 4,600 sqm capacity across mixed storage, ambient and cool-room facilities, this significantly increases the Toll Healthcare footprint in Brisbane from their existing facility at Mansfield (QLD) into this much larger custombuilt facility at Richlands.
The construction of this custombuilt Healthcare facility is a first for Toll in QLD and is a strategic decision to enable and facilitate growth from existing and new clients. Some of the key features being, air-conditioned pallet storage allowing for over 2,800 pallets, cool-room storage for over 500 pallets, Freezer storage. The site will have a 315W solar system providing green energy and supporting a “5 Green Star Rating” as well as redundant power and refrigeration systems allowing for ongoing operations.
The new facility will provide increased capacity for cold chain and frozen products, which are key growth areas in the healthcare logistics sector, says Phillip. This additional capacity will cater to both existing and future
business, ensuring Toll Healthcare remains competitive and responsive to market demands.
THE CHANGING LANDSCAPE
It’s a competitive and dynamic sector, healthcare logistics. Phillip says Toll Healthcare stands out by zeroing in on customer requirements.
“Our focus is on tailoring solutions to meet customers’ requirements,” he says. “We’re very flexible in the way that we deal with our customers and meet their needs. We have some basic underlying technology and warehouses, but we very much tailor our solutions around our customers.”
Reflecting on the challenges and opportunities faced during the COVID-19 pandemic, Phillip recognises the importance of early engagement with logistics providers and adapting to new challenges. “The major thing that came out of COVID was really just how everyone was a little bit unprepared. The Pharmaceutical Logistics Industry were handling vaccines at minus 80 degrees on a commercial scale, which had never done before. That was certainly a challenge to the industry.”
Despite these challenges, Australia’s distribution network proved reliable, allowing delivery of vaccines to remote locations. The most significant
impediment during the pandemic was the limited availability of planes and flights, which restricted the distribution network. However, the distribution of the vaccine remained efficient as we were able to leverage Toll’s broader transport network which included access to cargo planes and trucks.
Toll Healthcare operates primarily within the country, while Toll Group has healthcare operations in other parts of Asia, such as Singapore, China & India.
As the healthcare market continues to grow, so too do the demands on logistics providers. The ageing population and the increasing trend of at-home patient care are driving changes in the way healthcare products are distributed. Phillip highlights this shift, stating, “We see a trend now with people leaving hospitals early, so there’s a lot more at-home patient care. We now deliver our customers’ products to the patient’s home or pharmacy.”
This growing trend towards at-home care necessitates a distribution network that can cater to not just businessto-business transactions, but also business-to-consumer. By investing in state-of-the-art facilities like the one in Richlands and focusing on tailored solutions for their customers, the company is well-positioned to adapt to the evolving needs of the healthcare logistics market.
Toll Healthcare is poised for continued growth and success in the healthcare logistics space, driven by a commitment to customer-focused solutions, investment in cutting-edge facilities, and an agile approach to the ever-changing landscape of healthcare distribution. The new Richlands facility is yet another testament to their dedication to addressing the challenges and opportunities of the healthcare logistics sector, both now and in the years to come. ■
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FIGHTING FATIGUE
Electronic work diaries (EWDs) and fatigue management have become increasingly relevant topics in the heavy truck industry, particularly in Australia. Geotab, a global leader in connected transportation solutions, has recently partnered with Logmaster to deliver a comprehensive EWD solution for the Australian market. David Brown, Associate Vice President Sales – ANZ at Geotab, explains that this partnership is significant as it enables Geotab to enter the heavy truck space with a fully compliant NHVR approved solution.
According to David, the Australian government has not yet mandated EWDs, but they are becoming a popular option for many in the industry. “A lot of drivers actually like the electronic work diaries because it lightens their paperwork, but this must be with an NHVR accredited EWD, otherwise a manual logbook will still need to be submitted.” David says. Companies
also find EWDs beneficial due to their ability to proactively notify drivers of necessary breaks.
Geotab’s decision to partner with Logmaster was influenced by its focus on building and maintaining a strong partner ecosystem.
“We’re a big believer in the ecosystem of partners. We have built a brand at Geotab that assures users our devices are the best they can be in terms of getting as much information from the vehicle as possible,” David explains.
Logmaster is a leading Australian provider of EWD and Fatigue Management solutions offering a robust, app-based solution that doesn’t require significant hardware investment or additional cab space in the truck.
David highlights the simplicity of the Logmaster solution, which is NHVR-approved and works like a traditional electronic work diary – managing compliance, driving hours, and rest breaks. The app
also includes features like prestart checks, vehicle inspections, and document uploads, making it a convenient tool for drivers. “We want to make it simple for both drivers and fleet managers to use the solution,” David says.
By offering a comprehensive and user-friendly EWD solution, Geotab and Logmaster are meeting the needs of the industry while promoting safety and compliance. As the heavy truck industry evolves, the collaboration between these two companies will continue to be a driving force for innovation in electronic work diaries and fatigue management.
Electronic work diaries offer significant advantages for drivers when compared to traditional paperbased logbooks, says David. Without an EWD, drivers are required to manually log their hours and rest breaks in a paper logbook, which can be prone to errors, omissions, or inaccuracies. This manual process
The LoadMaster app, which is NHVR-approved, works like a traditional electronic work diary – managing compliance, driving hours, and rest breaks.
Always maintaining its partnership ecosystem to deliver the best solutions, Geotab has joined forces with Logmaster to provide an integrated solution for driver fatigue in the heavy vehicle industry.
also lacks real-time notifications and proof of compliance, leaving drivers and operators without solid evidence of their adherence to regulations.
David explains that an app-based solution like the one provided by Geotab and Logmaster offers a more user-friendly experience, as drivers can easily track both their driving and non-driving work hours on their smart device. This capability eliminates the need to carry a physical logbook and allows for more accurate monitoring of work activities.
Furthermore, EWDs provide realtime notifications to drivers, alerting them of upcoming rest breaks and helping them plan accordingly.
“If you’re 15 minutes away from a break, you will get an automatic notification which allows the driver to safely pull over,” David says. This proactive approach enables drivers to make informed decisions about their rest periods, ensuring they remain compliant with regulations.
In the event of a roadside inspection, EWDs can offer a more reliable and accurate record of a driver’s activities, and may help avoid fines and penalties for both drivers and companies. “If they go over [their driving hours] as well, it allows authorities to say, ‘Well, look, we have you over by five minutes. I don’t class that as a serious breach. But if you go over by half an hour, then that’s a serious breach,’” David adds.
Geotab’s partnership with Logmaster, which began in February, has generated significant interest in the Australian heavy truck industry, especially those looking to move away from paper-based solutions to EWDs. Prior to the partnership,
there were only a few providers in the market with the NHVR approved EWDs.
The upcoming 3G shutdown in June 2024 is also driving interest in Geotab solutions. Many heavy truck long haulage companies are seeking alternatives, as they will need to replace any 3G-based devices, including cameras and telematics systems, with newer compatible options, leading to increased inquiries about Geotab’s offerings.
The upcoming 3G shutdown is expected to have a massive impact on the industry, as a significant number of companies still operate on 3G technology, and so the Geotab-Logmaster partnership is particularly timely.
Geotab has ambitious plans for the EWD and fatigue management space going forward. Its goal is to become the number one telematics business in Australia, leveraging its position as the leading telematics company worldwide.
To achieve its goals, Geotab is committed to evolving with the market, exploring new areas like electric vehicles, and expanding its product offerings. An engineering company at heart, Geotab has the scalability and forward-thinking mindset required to stay ahead in the industry. And with its partnership with Logmaster, it has further cemented that reputation. ■
“
We’re a big believer in the ecosystem of partners and that we have built a brand at Geotab that assures our devices are the best they can be in terms of getting as much information from the vehicle as possible.
Geotab’s GO9 device.MyGeotab dashboard.
COMBILIFT DONATES MILESTONE TRUCK
As part of Combilift’s celebrations for its 25th anniversary, the Irish materials handling specialist has announced that it is donating its 75,000th truck – an Aisle Master articulated forklift – to Convoy of Hope, a non-profit humanitarian and disaster relief organisation.
Established in 1998 by two of Ireland’s leading engineers, Robert Moffett & Martin McVicar, Combilift celebrates 25 years in business this year, and is recognised as the fastest growing, and largest manufacturer of four directional, side loading, and articulated forklifts globally.
Alongside the Aisle Master narrow aisle articulated forklift for handling pallets as well as larger loads in warehousing applications, products include the C-series multidirectional range of trucks for handling long loads safely, Straddle Carriers and Mobile Gantries for handling
containers or oversized loads, and pedestrian operated stacker trucks. The model range on offer exceeds 50 distinct models with capacities ranging from less than one tonne to more than 100 tonnes.
In celebration of Combilift’s success, and its ongoing commitment to the wellbeing of the world community, Combilift donated its 75,000th manufactured truck to nonprofit humanitarian and disaster relief organisation Convoy of Hope.
Convoy of Hope works alongside communities and its wide network of volunteers aims to alleviate poverty and hunger and to bring help
and hope wherever they are most needed in the world. As this type of aid is sadly always in demand, operational expansion has also seen a corresponding increase in the requirement for warehousing capacity to accommodate the vast volume of supplies that are stored and ready for delivery to areas in need.
The World Distribution Center is based in Springfield, Missouri, and from this location at the “crossroads of America” truckloads of relief supplies and food are sent on their way across the USA and further afield around the globe. Combilift supplied
MHD MATERIALS HANDLING
its first Aisle Master for this site four years ago, and a further three units were delivered last year.
“A lot of our exponential growth has been down to the Aisle Masters as they enable us to get more loads in and out faster,” says Jeff Smethers, Convoy of Hope’s Senior Director – Distribution. “And thanks to Combilift’s free warehouse layout service and the Aisle Master’s narrow aisle capability we have achieved the best possible storage density and a very efficient operation.”
The announcement was made at a gala dinner in Chicago during ProMat.
“The work that Convoy of Hope does is invaluable to relieve suffering around the world and we wanted to make our own contribution by donating our 75,000th truck to this very worthwhile charity,” Combilift CEO and Co-Founder Martin McVicar told the audience.
“We are so grateful that Combilift and Martin and the whole team have actually given us one of these trucks for our operations,” Erick Meier, Senior Vice President - Supply Chain
at Convoy of Hope, said. “This is going to help people for years – and ensure that every day someone in the world will receive aid – and that brings hope.”
Combilift continues to be at the forefront of product innovation, keeping one – if not many – steps
ahead of any competition due to continuous annual investment of seven per cent of its turnover in R&D. From a total of 18 units produced in 1998, more than 75,000 units – most of which are customised to individual requirements – have since been sold in more than 85 countries. ■
THE INDUSTRIAL ASPECT
Richard Seddon of Mirvac and CBRE’s Cameron Grier discuss the new Aspect Industrial Estate in Kemps Creek, Western Sydney.
Mirvac, a leading property developer, is making strides in sustainable development with its first carbon-neutral industrial estate. Located in Kemps Creek, Western Sydney, Aspect Industrial Estate spans 56 hectares and promises to be a game-changer in the logistics sector.
Richard Seddon, Mirvac CEO, Investments, provided MHD with an overview of the project, highlighting its key features and strategic location.
According to Richard, Aspect Industrial Estate is “targeted to be Mirvac’s first carbon neutral [embodied carbon] industrial development.”
With 245,000 square meters of highquality warehouse and office space, the development focuses on “flexibility, functionality, and sustainability.” This, Richard says, will create a “marketleading employment precinct for Western Sydney.”
The strategic location of the estate plays a significant role in its attractiveness. Situated close to the new Western Sydney Airport at Badgerys Creek, Richard notes that it is “less than 10 mins from the M7 motorway, 20km to Penrith and under an hour to Parramatta and the Sydney CBD.” This connectivity will surely make it an ideal hub for businesses looking to establish or expand their logistics operations.
In addition to its sustainability and locational advantages, Aspect Industrial Estate also aims to cater to the needs of its customers and visitors. Richard says that “the estate will incorporate a cafe to service customers and visitors,” ensuring a convenient and pleasant environment for those on-site.
The development of the estate is progressing rapidly, as Richard reports that “infrastructure works are well underway, with construction of the first warehouse commencing in March
2023 and approximately 64 per cent of the estate already committed.” This ambitious project emphasises Mirvac’s commitment to sustainability and its dedication to providing high quality, brand new functional and efficient spaces for the logistics industry.
Aspect Industrial Estate is poised to become a cutting-edge hub for various industries, with several prominent brands already committing to occupy its state-of-the-art facilities. Mirvac’s next-generation estate, currently under construction in the Mamre Road Precinct, will host CEVA Logistics, Winning Group, and Lineage as key tenants.
Each of these brands brings unique requirements and innovative uses for the facilities, further elevating the estate’s status as a leading logistics centre.
CEVA Logistics Australia has secured a 33,000 sqm space, which includes 12,700 sqm of pharmaceutical-grade temperature control space. Richard explains that CEVA’s business is “heavily focused on sustainability,” with the facility incorporating a significant PV Solar System, associated battery storage, and targeting a 5-star
green star certification.
The distribution centre will enable the company to support its customers amidst the unprecedented supply chain disruptions witnessed recently.
Winning Group, a leading Australian retail entity, has committed to a 66,000 sqm distribution centre, which will be their largest in Australia and their century-old history. Richard emphasises that the facility will support the group’s “continued and future growth,” including their expansion into new big and bulky goods categories across their retail businesses and third-party logistics capabilities. With a key focus on sustainability shared by Mirvac and Winning Group, the distribution centre will target a 6-star green star certification.
Lineage Logistics, a global leader in cold storage solutions, will establish a 27,000 sqm cold storage facility at Aspect. According to Richard, this represents “a major investment in the New South Wales food supply chain,” linking NSW producers to the rest of Australia and important international markets. The facility, equipped with world-leading technology, addresses
the current demand for fast, reliable food supply in NSW, which has been challenged due to an undersupply in temperature-controlled warehousing.
While Aspect Industrial Estate continues to take shape – and while demand has been very strong –some facilities are still available for lease, offering potential tenants the opportunity to establish their businesses within this state-of-the-art logistics hub. Richard highlights the strategic location of the estate, which provides “access to approximately 4.3 million people within a 60-minute drive.” This prime location enables Mirvac to cater to growing e-commerce demand and support wide-scale supply chain investment as businesses seek more efficient logistics solutions, such as automation, backed by worldleading technology.
Aspect Industrial Estate is set to be Mirvac’s first carbon-neutral industrial development, featuring a range of leading sustainability measures. Richard points out that the estate will boast a minimum 5-star green star certification, environmental monitoring systems, EV charging stations, rooftop solar systems, translucent roof sheeting, LED lighting, rainwater harvesting, and outdoor breakout spaces for staff.
Mirvac’s integrated in-house design team, collaborating with SBA Architects, is committed to delivering exceptional quality and detail in
the construction and finish of the warehouses at Aspect. Drawing on SBA Architects’ workplace and residential expertise – demonstrated at Calibre Estate in Eastern Creek – Richard says that the development will set a new benchmark in the industry.
Cameron Grier, Regional Director - Pacific, Industrial and Logistics at CBRE, recently described Aspect Industrial Estate as being part of a logistics hub that will serve as the “centre” for future logistics in Sydney.
Elaborating on this point, Richard explains that Aspect will play a crucial role in delivering key infrastructure for the wider Mamre Road Precinct as the new employment hub and broader Aerotropolis region takes shape.
The Mamre Road Precinct is a $2.6 billion project, one of the 12 key precincts in the Western Sydney Aerotropolis, which has unlocked 850 hectares of new industrial land. It also entails the creation of new public spaces and conservation areas. Richard emphasises that the Precinct is an “important step forward in securing Western Sydney’s future as a global hub for logistics and advanced manufacturing.” This development provides opportunities for companies like Mirvac to invest in Western Sydney, allowing major warehousing, logistics, manufacturing, and circular economy operations to be established.
Richard expects would-be tenants to jump at the opportunity to be part of
the Aspect Industrial Estate.
He states that Mirvac has “a number of other warehouse opportunities within Aspect ranging from 4,000 –23,000 sqm,” including Warehouse 3, and a DA Approved 21,000 sqm warehouse targeting completion in June 2024.
CBRE’s Cameron Grier agrees such warehouse opportunities are exciting for would-be tenants, as Mirvac stands out as a developer, emphasising its commitment to building high-quality products across multiple sectors.
Cameron also notes Mirvac’s commitment to environmental sustainability, which is integrated across all its projects nationwide, and its strong emphasis on design excellence.
Across Mirvac’s portfolio, Calibre Estate at Eastern Creek and the under-construction Switchyard Estate in Auburn set new benchmarks for quality and design in Sydney and have raised the bar for the new standard in industrial facilities.
The company’s focus on design excellence extends to Aspect Industrial Estate, where they collaborate with leading architects and designers to create future-proof facilities.
Ultimately, Mirvac aims to build long-lasting, quality projects that retain tenants. With Aspect, they strive to create a development that will stand the test of time and meet the evolving demands for their customers. ■
LABEL PRINTING WITH THE BROTHER TITAN RANGE
Brother International Australia, the printing, imaging, and labelling company is making its presence known in the logistics and warehousing space with its first ever range of industrial label printers, built for tough production environments. MHD found out how these solutions can benefit supply chain businesses.
Brother International Australia has made its foray into the industrial label printing space with its new Titan Industrial range.
These durable label printers have been designed to meet the high-volume demands of businesses across many industries, including food and beverage, manufacturing and transportation, warehousing and logistics, and retail.
From shipping and receiving labels, products and compliance labels, and everything in between, this series of thermal label printers ensure a seamless transition into your existing infrastructures – allowing users to simply drop-in, connect, and print.
PRINT THOUSANDS OF LABELS WITH EASE
Brother International Australia has created industrial printing solutions to solve end-user needs.
“We believe our Titan range of industrial label printers cater to a wide variety of customer needs and can easily meet the high-volume demands of fast-moving businesses and supply chains,” Michael Morales, Product & Business Planning Manager at Brother International Australia, says.
“Venturing into the industrial realm of printing allows us to further support our customers’ labelling needs regardless of the volume printed.”
The Titan range is capable of direct thermal and thermal transfer printing and is built to print more than 10,000 labels a day. It covers 203dpi and 300dpi with print speeds up to 305mm per second, as well as ethernet and USB connectivity, with optional Wi-Fi and
Bluetooth available* To help boost productivity and enhance workflows, the Titan range supports high-capacity label ribbons of up to 600m, saving businesses time thanks to fewer label changes while still producing professional-quality prints.
A build-in rewinder on the premium TJ-4522TN model allows users to simply send their labels to print and collect the ready-printed label roll whenever they need it.
Built to last, each product in the range
features a durable metal frame, designed to tackle the challenges of everyday use.
Businesses can be confident that Brother will remain at your side with a generous two-year warranty on hardware and print heads, and free product support for the lifetime of the product.
INCREASING PRODUCTIVITY, DECREASING DOWNTIME
“Our premium model also comes with a colour touch display panel,” David
Molloy, Mobile Print & Labelling Specialist at Brother International Australia, adds.
“All Titan models are designed to meet business demands and can be easily integrated into any tough working environment.”
Whether it’s shipping labels, serial number labels, rating plate labels or pallet labels, it comes down to the application for warehousing and logistics businesses.
The Titan Industrial range of thermal label printers has been developed to ensure minimal downtime and maximum productivity in tough production environments.
It also has multiple connectivity options and reliable built-in technology that optimises efficiency and allows users to multitask.
“Brother has earned a reputation for reliable products, supporting our customers consistently over many years,” Michael explains.
“We now bring this reliability and high-quality service to industrial label printing in the warehousing and logistics spaces. Wherever our customers are in Australia, Brother offers free
product support for the lifetime of their device.”
OPTIONAL ACCESSORIES FOR CUSTOMISATION
The key is to match accessories to the needs and workflows of the business. For example, if the user prints a run of labels overnight that are then applied by workers the following day, it makes sense that they would use a rewinder as opposed to having a cutter and having every label sitting in a container.
Similarly, if a business’s workflow has staff applying labels as they are printed, it may be ideal to utilise a label peeler option. Businesses can take advantage of the suite of connectivity options including USB 2.0, serial, and Ethernet.
“Increasingly, we’re noticing that customers are shifting to Wi-Fi or Bluetooth technologies and depending on the models, these printers can accommodate this,” David says.
The Titan range supports various printer command languages, including ZPL2, EPL and DPL emulation, and can also support Software Development Kits.
To accommodate a variety of needs, Brother International Australia has created separate SKUs so that customers can choose whatever optional accessories they need, and its trained technicians will install the devices before they’re shipped out.
Once the customer receives their Titan label printer, all they need to do is drop-in, connect, and print as the device will be ready to go. ■
Disclaimer: *Dual Bluetooth and Wi-Fi for TJ-4522TN and TJ-4420TN models. Bluetooth accessory is available for the TJ-4020TN model.
Brother International Australia has created industrial printing solutions to solve end-user needs.Titan TJ-4020TN Industrial Label Printer. Titan TJ-4420TN Industrial Label Printer.
Industrial Real EstateIndustrial Real Estate
If
Steve
Partner 0410 532 022 steve.smith@ leedwell.com.au
Andrew
National Director 0410 312 116 andrew.gerlach@ leedwell.com.au
Henry
Director Industrial 0412 404 426 henry.treloar@ leedwell.com.au
Jamie
Senior Executive 0450 959 032 jamie.forwood@ leedwell.com.au
Will
Senior Executive 0430 407 793 will.goode@ leedwell.com.au
Anthony
Senior Executive 0423 568 771 anthony.depalma@ leedwell.com.au
Renee
Senior Executive 0490 865 820 renee.ferraro@ leedwell.com.au
Cameron
Senior Executive 0405 885 811 cameron.giles@ leedwell.com.au
- Henry Ford
WHAT IS SCAN4TRANSPORT?
GS1’s innovative Scan4Transport logistics label standard is set to streamline supply chains and enhance customer satisfaction.
As global supply chains continue to evolve, businesses are constantly seeking ways to improve efficiency and meet the growing demands of their customers. To address these challenges, GS1 has introduced Scan4Transport, a game-changing standard for encoding transport data on logistics labels. This new standard promises to revolutionise the transportation process by streamlining first mile, sortation, and last mile activities, and offering enhanced visibility and interoperability across the entire supply chain.
A GLOBAL STANDARD FOR ENCODING TRANSPORT DATA
Developed by a global industry workgroup, Scan4Transport is a standard that allows companies to
encode transport data on a logistics label using a 2D barcode. This technology enables the capture of core data required to complete a transport task – such as address information and authority to leave – by simply scanning the barcode. The standard is designed to facilitate the transport of various types of freight, including satchels, cartons, and pallets.
HARNESSING THE POWER OF 2D BARCODES
2D barcodes, such as QR Codes, can store large amounts of data, making them ideal for encoding transportrelated information. By embedding data relevant to the transport process (e.g., Ship to Address, Dangerous Goods Information, Weight) within a 2D barcode, the information becomes accessible in both online and offline environments. The new Application
Identifiers (AI) released as part of the Scan4Transport standard unambiguously indicate the meaning of the data element following it, enabling stakeholders to encode and understand the data in a globally standardised manner.
ADVANTAGES OF SCAN4TRANSPORT
By adopting the Scan4Transport standard, businesses can benefit from:
• Improved first and last mile processes by capturing essential information relating to the transport task from the barcode on the logistics label (e.g., before the electronic instructions have been received)
• Enhanced sortation through the capture of granular address information, including street, from
the barcode on the logistics label;
• Visibility of transport task requirements even if remote IT systems are unavailable for look-up;
• Improved efficiency and interoperability across industry through a standard label across the entire supply chain; and
• Smoother processes and greater customer satisfaction.
GLOBAL COLLABORATION FOR A BRIGHTER FUTURE
The Scan4Transport standard was developed by a diverse group of industry representatives, including Australian transport companies AusPost, DHL, and VicTas Freight Express. The workgroup also had support from shippers, logistic service providers, solution providers, and GS1 member organisations from more than 22 countries worldwide. This collaborative effort has resulted in a new Implementation Guideline and pilot report which leverages the GS1 Digital Link standard within a 2D barcode on the logistics label, focusing on improving efficiency, interoperability, and visibility across the transport process, particularly in last mile activities.
With the introduction of Scan4Transport, GS1 is once again at the forefront of supply chain innovation. By embracing this new standard, businesses can streamline their transportation processes, enhance efficiency, and ultimately
satisfy the ever-growing demands of their customers. As the logistics industry continues to evolve, Scan4Transport will play a pivotal role in shaping the future of global supply chains.
IMPLEMENTING SCAN4TRANSPORT
Now is the right time to get moving on implementing the Scan4Transport standard, says Michiel Ruighaver, Senior Account Manager – Freight, Logistics & Industrial Sectors, at GS1.
“The next time a shipper or logistic service provider needs to set up a new label, discuss the possibility of using the Scan4Transport label format,” says Michiel. “Scan4Transport enables freight to talk as it’s a standardised label format, not a proprietary format.”
He adds that there are plenty of solutions providers ready to help businesses along the journey.
“Implementing the Scan4Transport standards is becoming easier every day, with innovative solution providers like Avery Dennison, BarTender, Leopard Systems, TransVirtual, and Skywire including the standards in their solutions ‘outof-the-box’. Simply contact these solution providers to discuss your requirements and they will get you up and running quickly.” ■
To connect with one of these solutions providers, visit www.gs1au.org/ what-we-do/solution-providers
“ Implementing the Scan4Transport standards is becoming easier every day, with innovative solution providers like Avery Dennison, BarTender, Leopard Systems, Transvirtual, and Skywire including the standards in their solutions ‘outof-the-box’.Scan4Transport is a standard that allows companies to encode transport data on a logistics label using a 2D barcode.
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New Toll Healthcare Distribution and Warehouse Facility 262 Orchard Road, Richlands, QLD
With a capacity of 4,600 sqm across mixed storage, ambient and cool-room facilities, Richlands is conveniently located just 24km from the Brisbane CBD.
Key features include:
Air-conditioned, cold chain and frozen pallet storage
Cool-room (2-8°C) storage
2 x RSD and on-grade docks
315W solar system providing green energy and supporting a “5 Green Star Rating*”
N + 1 redundant power and refrigeration systems allowing for ongoing operations
* Green Star Rating subject to certification after commencement
https://www.tollgroup.com/solutions/industries/government-defence/healthcare-logistics
healthcaresales@tollgroup.com
NATIONAL RETAILER SECURES SUBLEASE SPACE IN MELBOURNE’S WEST
With supply of industrial property at an all-time low, Leedwell has been working hard to continue delivering property deals that meet the expectations and requirements of lessors and tenants, including a major recent sublease deal between two national retailers.
Leedwell has successfully facilitated a significant sublease of warehouse accommodation between Amart Furniture Pty Ltd and a national kitchenware retailer into Melbourne’s west.
The sublease deal between the two major retailers was struck at the end of 2022 and incorporated roughly 12,000 sqm of lettable area in the Truganina facility.
“In a market where supply is at an all-time low, Melbourne’s western industrial market is a tough place to transact. Demand from tenants has been strong so matching opportunities has been near impossible,” Renee Ferarro, Senior Executive at Leedwell says.
Market reports indicated that only 170,000 sqm of warehouse accommodation was taken up in Q422, some 50 per cent of what was recorded in the previous quarter (CBRE: Australian Industrial & Logistics Figures Q2 2022). This lower take up was a result of a shortage of space being available.
Leedwell partnered with supply chain-based management consultancy, tgroup.co to source and identify suitable warehouse solutions in Melbourne’s west to meet the specific requirements of the tenant.
“Renee was referred to us when we were establishing our strategy,” Roger Minton from tgroup.co says. “Once we had agreed on the brief, Renee was determined to unearth whatever
scarce opportunities were available in the market.
“Given the lack of opportunities available, we had to be decisive and act quickly when Renee presented something that met our brief.”
The facility located in Truganina is a 48,000 sqm building occupied by Amart Furniture. Amart had subleased approximately 12,000 sqm to VidaXL while a new building was being constructed for them nearby.
“With low levels of quality warehouse supply, the likelihood of the space remaining vacant for too long was never on the cards and the speed in which the
transaction was consummated was a reflection of Renee having her finger on the pulse and understanding the objectives of the parties”, Richard Champion, General Manager –Property at Amart says.
The space represents additional storage for the tenant and will accommodate various cookware, dining, and giftware products.
The location of the property with access to major arterial roads and links Princes Highway, West Gate Freeway and Western Ring Road was a major attraction for the tenant, together with the high quality, modern improvements. ■
TRANSFORMING SUPPLY CHAIN WITH AI AND ROBOTICS
With technology rapidly changing and unprecedented challenges constantly arising, supply chain businesses, like their adjacent industries, are needing to adopt artificial intelligence-based solutions to enhance their operations. SICK Pty Ltd.’s JeanMichel Maclou tells MHD what the automation company has to offer in this space.
In a world of more varied and complex orders, with e-commerce driving up demand for specific as well as bulk quantities of SKUs, proper and efficient identification of items is more important than ever.
SICK Pty Ltd.’s latest artificial intelligence (AI) and robotic technological innovations are addressing the major pain points in the supply chain and logistics industry.
The sensor, safety systems and automatic product identification manufacturer is using these solutions to enhance its clients’ operations, including spiking, bargaining, video coding, optical character recognition, classification, and more.
EQUIPPING BUSINESSES WITH SMART SOLUTIONS
SICK Pty Ltd has an array of solutions for its customers, including spiking –which is used to deal with sortation –bargaining one of the primary forms most 3PLs at small freight organisations use to backdate products.
“It can be difficult to sort goods when relying on barcodes, especially if they’re damaged,” explains JeanMichel, Sales Manager, Logistics Automation at the German-founded enterprise.
“Lots of packages are on the sorter, being transported beneath the scanner at the same time, and this is why businesses are adopting AI-based solutions to improve their sortation processes.”
AI has been implemented in SICK’s video coding and optical character
recognition solutions.
“Many big freight organisations such as Toll, DHL and FedEx are using these technologies,” Jean-Michel adds.
“These are vision-based technologies, allowing operators to capture not only barcodes and labels, but ‘human readables’, which is just a phrase for a customer’s personal information on a delivery such as their full name or home address.”
Traditionally, if a barcode is damaged on the label, items will need to be sorted manually, which can result in delays and human errors.
AI-enabled optical character recognition technology allows parcels and mail to be sorted under high speed even when the barcode is damaged. The camera system can read delivery addresses on the labels at a very high conveyor speed, and sort them automatically according to the address details such as postcode and state.
The difference between optical character recognition and video coding is that optical character recognition is done within its own system, e.g., a bank of servers with some information with regards to different characters, and confidence of different characters.
Video coding requires an operator at a desktop to look at various images, which are presented on the screen and need to be correctly orientated. The operator can be located anywhere around the globe to undertake this sortation process. They can then enter the postcode, allowing the action to take place.
“These technologies are
implemented today to reduce any reject of parcels that’s inducted through their operation,” notes Jean-Michel. “The most amount of reject that they get means they have to get a dedicated labour to sort through those manually.
“We can provide a classification of objects. This is data about boxes, satchels, polybags, and provides additional information via the sortation process about the prototypes going through operations, and also supports smarter decision-making processes within their sortations.”
Additionally, SICK Pty Ltd can provide customers with dangerous goods information through the human readable labels on parcels.
“Our solution informs freight organisations as to what products they’re carrying through the operations and enables them to make smarter decisions. It’s important when
they’re covering the last mile and they need to ensure they have a proper inventory.”
MINIMISING LABOUR AND REDUCING RISKS
Item verification – also known as parcel hijacking – is a sortation system on a belt conveyor, or a crossbelt sorter. They have multiple passwords that are almost on top of each other. These are important for a lot of operations because parcels need to be directed to the right destination.
“We now have this ability to provide the whereabouts of the package,” Jean-Michel says. “We can therefore know if we’re dealing with a single item or multiple items. They go through a reject shoot then are inducted through a system again to be sorted correctly.”
Another option is object detection profiling, which relates to maximising throughput via a business’s operations or through its sortation system. If there’s a flat object that isn’t detected through the dimensioning system because it’s too low or too big, SICK’s camera and vision-based technology can detect and reject the object.
If this doesn’t happen, the cell continues to show it’s occupied, which means that the operator can’t induct a new parcel onto that cell.
“The benefits of our solution is that it can automate, minimise manual labour, and this all means there are less parcels, boxes, and satchels being sent to reject chutes,” adds Jean-Michel. “Our technology can body scan, as well as look at all the different parts of an object or sortation information, and all with this accurate system.”
SORTING ITEMS WITH AGVS AND COBOTS
Besides AI and digital-based solutions, SICK Pty Ltd has automated guided vehicles (AGVs) such as forklifts and automatic guided cart systems – small mobile devices which can carry various miniscule items around DCs, and cobots – robots cooperating with operators in a facility like a DC or warehouse.
Various solutions can sort numerous products. LIDAR scanners safely operate in the same spaces as workers. They engage with their automated
guided systems to detect human activity and eliminate any hazardous occurrences by moving out of a worker’s path.
“We provide our own risk assessment to customers,” explains Jean-Michel. “We work closely with our system integrators to ensure we design solutions that are suitable for operating within the proximity of workers.”
Vision-based and wider technology are used for self-guiding purposes. Many of the automated guidance systems don’t require any humanrelated operating and they’re usually used in dark warehouses where
unwanted costs.
“We’ve introduced what we call ultra-wideband technology, which is similar technology to RFID,” notes Jean-Michel. “It works on a different principle. We can provide a timestamp as to when we last tracked the item and where it was, and we can do it on a pallet level.
“For example, if there were multiple products on a pallet, we could track it throughout the operation to essentially provide accurate information on where it’s located. The ultra-wideband tied into our cloud solution services is a complete package
“A cloud solution service provides you with the relevant data of what the customer would like to see. In terms of interrogating any particular asset, we can then provide that on a dashboard through a cloud service so a customer can access it any time.
“In this day and age, it’s necessary to have accurate technology that supports a freight organisation’s throughput requirements because they need to have that level of transparency within their distribution centre: knowing where certain parcels are being scanned and where their assets are.
“It’s about customer satisfaction. The more information we can provide about their parcels, the better. It’s only when the customer has that seamless experience that organisations get repeat business from them.” ■
they’re programmed to take certain routes. They determine the specific route through contour detection, luminescence, and sensors.
“We’ve done implementation with RFID and two-dimensional call marking in factories. These solutions remove the repetitive work humans would usually do. There’s still that interface between human and robot though.”
SICK is focused on asset management, which includes pinpointing where pallets or LDL cans are in a DC or warehouse, and this is done to prevent items from going missing and businesses incurring
“ The difference between optical character recognition and video coding is that optical character recognition is done within its own system.
MITIGATING SUPPLY CHAIN RISKS WITH AI
Professor Ben Fahimnia from the University of Sydney writes in this column about how artificial intelligence is a solution Australian businesses need to embrace if they want to survive unforeseen disruptions and mitigate supply chain risks.
From COVID-19 to the war in Ukraine, the world has scarcely felt more chaotic –and the disruption to our fragile supply chains has been universal. But what if there were a way to predict and prepare for such random disruptive events? This science fiction could become science fact through harnessing the power of artificial intelligence (AI).
There is no real end in sight to the disrupted global supply chains. Continuing geopolitical instability, labour shortages, severe weather, and lingering inflation threaten to keep supply chains unsettled for the foreseeable future.
Our essential industries must find effective ways to live with disruptions by systematic detection, evaluation, and implementation of mitigation strategies.
Australia is particularly vulnerable to trade disruptions in the global marketplace because most of our supply chains heavily rely on overseas supply with limited tolerance for disruption.
Risk mitigation is even more crucial for the supply of essential goods and services (i.e., food, water, health, and shelter) as their continued supply during disruptions plays a critical role in Australia’s economic functioning, the wellbeing of its people, and our national security.
“Predictive analytics” use probability theories to determine what is likely to happen based on patterns and trends revealed from analysing large historical and realtime data. Such tools can predict the impact of future disruptions on our essential supply chains.
Predictive analytics have been
around for decades, but only recently they started to become mainstream thanks to AI methods capable of analysing large amount of unstructured data. For example, machine learning methods can now use historical disruption data as well as real-time operational data to provide an early warning of future supply chain failures.
Many companies in the semiconductor industry have learned since COVID-19 how to utilise such AI tools to predict potential failures across the supply chains.
“Prescriptive analytics” use the results provided by predictive analytics to take a step further and determine the best action plans to reach a desired outcome. Such tools use advanced optimisation models and decision logic rules to find out the best mitigation strategies for the
Predictive analytics use probability theories to determine what is likely to happen based on patterns and trends revealed from analysing large historical- and real-time data.
essential industries to capitalise on.
Predictive and prescriptive analytics can also assist with federal and state policy decisions on supporting risk management initiatives. For example, the use of predictive analytics will reveal whether resilience-building initiatives by certain industries are hampered by regulations.
Prescriptive analytics can help policymakers take informed actions to provide special services to companies involved in the supply of
critical products, or to take direct ownership of the risk management of certain products.
As impressive as AI tools are, their implementation is easier said than done. The most important challenge in Australia is data restrictions. AI tools require large amounts of precise digital data to train algorithms and produce reliable results (ChatGPT was trained on a corpus of over 570 GB of text data).
In the past few years, most
organisations have generated more data than ever before. However, effective data management systems need to be established by these organisations to deal with data clustering, availability, and security constraints.
The second challenge is the initial capital investment for design and deployment of such AI models and acquisition of the AI-specific hardware that the models need to work with cloud-based systems.
We know that the frequency and magnitude of disruptive events will continue to rise, so will their significant impact on our supply chains. AI innovations can make such disruptions a thing of the past.
AI-driven analytics can help our essential supply chains to build resilience capabilities through systematic detection of mitigation strategies to capitalise on.
Australian industries and research organisations must urgently increase research and development in AI-driven analytics to empower our essential industries to build future-ready supply chains. ■
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PEOPLE ON THE MOVE
A monthly wrap up of the latest appointments in the supply chain, materials handling and logistics industry.
MICROLISTICS’ PROMOTES FROM OWN RANKS
Sam Dawson has moved within the WiseTech Global group to lead sales of warehouse solutions. He will be responsible for bringing together Microlistics WMS and CargoWise Warehousing into one sales team with a united market strategy. This move represents WiseTech’s commitment to enhancing its CargoWise ecosystem with a strategic focus on growing its warehousing capabilities. Sam has over 15 years of experience as a Business Development Manager at Microlistics. He brings strategic thinking and a customer-centric approach, which will be instrumental in delivering WiseTech’s grand warehousing plans.
LEEDWELL APPOINTS SENIOR EXECUTIVE
Leedwell Property has appointed Anthony De Palma as a Senior Executive in its South Australian Industrial team. Anthony brings five years’ experience in the sector and will work closely with the team to expand and nurture existing relationships to achieve great client results.
SICK’S JEAN-MICHEL MACLOU
For over 20 years, Jean-Michel Maclou has been a strong advocate of using innovative technologies to solve key industry challenges such as revenue recovering, throughput optimisation, and supply chain transparency. He helps organisations realise their goals of the digital transformation and has been involved with many RFID implementations across various industries. Jean-Michel has a MBA with Australian Institute of Management and a Bachelor degree of Engineering in Electronics from RMIT University in Melbourne. He is now the Logistics Automation Sales Manager at SICK Sensor Intelligence. Over the last few years, he has worked with various organisations to stress the importance of implementing appropriate logistic solutions across Australia and New Zealand.
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