AUGUST 2020
PIVOTING FROM B2B TO B2C
How one of Australia’s largest hair and beauty enterprises transformed its e-commerce offering to meet record demand
WHAT’S NEXT FOR THE GROCERY SUPPLY CHAIN?
Collaboration and coordination drives transformation for the grocery retail sector COVER STORY
TAKING PRIDE IN PROVIDING AN ESSENTIAL SERVICE Why Toyota’s long-established business model stood them in good stead to deal with the challenges of COVID-19
MHD FROM THE EDITOR
MHD Supply Chain Solutions CONTACT MHD Supply Chain Solutions is published by Prime Creative Media 11-15 Buckhurst Street, South Melbourne VIC 3205 Telephone: (+61) 03 9690 8766 Website: www.primecreativemedia.com.au
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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.
SUPPLY CHAIN’S NEW NORMAL
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he fight against COVID-19 is still very much among us. As I write this column, I am spending my fifth month of the year working from home and my fellow Melbournians are now two weeks into our second Stage Three lockdown. The pandemic is not over, and there are fears that the full brunt of the economic recession is still ahead of us. While conversations about what life in Australia might look like post-COVID were well and truly underway last month, the spirit has shifted as millions of Australians enter lockdown 2.0. However, for supply chain practitioners, discussions around how logistics operations will be different post COVID-19 are advancing. Many businesses are starting to work out what will need to change to avoid some of the challenges that were felt during the impact of the coronavirus pandemic. Omera Khan, Professor of Supply Chain Management at the University of London says that those businesses who considered their supply chains to be resilient suddenly found they weren’t. Industries that had resisted change, suddenly found themselves embracing it and consumers used to abundance found themselves dealing with scarcity. For many, this crisis has exposed weak spots and the vulnerability of supply chains. Australia has already ramped up its manufacturing processes closer to home, to mitigate the risk of any shortages of essential goods in the future. Many businesses are reassessing their transport and warehouse networks, exploring ways to hold higher inventory levels. A recent white paper released by DHL titled Post-Coronavirus Supply Chain Recovery revealed the issue of panic buying has led to a “bullwhip effect” and poses the question whether the “justin-time” theory will become “just-in-case”. It feels apt to quote Professor Richard Wilding, an award-winning international supply chain expert, here: “In the new normal, if your supply chain is the same as the one that you had pre-coronavirus, you’re probably doing something wrong.” With weak spots exposed, and the supply chain now at the top of every business’s agenda, I look forward to seeing the transformations and innovations that will come out of this new era for logistics.
ARTICLES All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format. COPYRIGHT MHD magazine is owned by Prime Creative Media. All material in MHD is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in MHD are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.
Melanie Stark Editor melanie.stark@primecreative.com.au
MHD Supply Chain
MHD AUGUST 2020 | 3
AUGUST 2020
ISSUE #7 VOLUME 50
THIS ISSUE COVER STORY
18 At the forefront of Australia’s materials handling market
PROPERTY 12 Melbourne’s award-winning industrial park 40 Sydney’s global hub for logistics
EVENTS
18
COVER STORY
16 Women in Industry finalists
MATERIALS HANDLING 22 Improved warehouse flexibility 32 Setting the standard for safety 38 Turning food waste into profits
E-COMMERCE 24 Australia’s most important data 28 The secret to beauty 44 The backbone of e-commerce fulfilment
SUPPLY CHAIN 36 Innovating Asia Pacific
AUGUST 2020
42 Disruption with a difference
24 PIVOTING FROM B2B TO B2C
How one of Australia’s largest hair and beauty enterprises transformed its e-commerce offering to meet record demand
WHAT’S NEXT FOR THE GROCERY SUPPLY CHAIN?
Collaboration and coordination drives transformation for the grocery retail sector COVER STORY
TAKING PRIDE IN PROVIDING AN ESSENTIAL SERVICE Why Toyota’s long-established business model stood them in good stead to deal with the challenges of COVID-19
48 An extraordinary response 50 Reducing our carbon footprint
42
WAREHOUSING 34 Engineering expertise 46 A holistic view
DEPARTMENTS AND REGULARS 06 News 14 In the warehouse
ON THE COVER MHD sits down with the senior executive team at Toyota Material Handling Australia to talk diversification, loyalty, putting people first and Australia’s high
52 Women in industry 54 Property focus 56 SCLAA 58 ASCI 60 ALC 62 The last word
growth industries. MHD AUGUST 2020 | 5
MHD NEWS
The Federal Government will invest $2 billion to help job seekers
Michaelia Cash, Minister for Employment, Skills, Small and Family Business.
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he Morrison Government announced it will invest $2 billion on Thursday July 16 to give hundreds of thousands of Australians access to new skills by retraining and upskilling them into sectors with job opportunities, as the economy recovers from COVID-19. The new $1 billion JobTrainer program will provide up to an additional 340,700 training places to help school leavers and job seekers access short and long courses to develop new skills in growth sectors and create a pathway to more qualifications. The courses are expected to be in fields such as health, social assistance, transport, warehousing, manufacturing and retail, although this is also subject to state governments. Ben Maguire, Australian Trucking Association (ATA) CEO said its members are very keen to see more support for new starters entering the industry, whether as truck drivers or heavy vehicle mechanics. “The JobTrainer package will provide a much-needed boost for those considering a career in our industry,” he said. The Victorian Transport Association (VTA) has welcomed the federal 6 | MHD AUGUST 2020
funding, as the transport industry has been experiencing a skills shortage for many years due to an aging workforce and young workers seeking jobs in other professions. “Transport is a highly-skilled profession and the establishment of training programs that offer the essential skills demanded by freight and logistics operators is an important part of positioning transport work as being much more than just a job,” VTA CEO Peter Anderson said. Peter said JobTrainer is a perfect fit for the transport sector because it targets young people and school leavers the VTA has been working trying to attract to lifelong careers as professional transport workers. “As an Association we will continue to develop programs to appeal to young people and are looking for support from our members and the broader transport industry to put young, capable and qualified people to work in transport,” he said. Paul Zahra, ARA CEO said retail is Australia’s largest private employer, and many Australians get their first job in retail.
“The retail industry needs skills to fill critical roles in modern retailing, and we hope this will ensure retailers with urgent training needs can find talent in a simpler, more costeffective way,” he said. Michaelia Cash, Minister for Employment, Skills, Small and Family Business said the National Skills Commission would play a critical role in identifying current and future skills needed in a challenging and changing labour market. “We will work with States and Territories to develop a list of qualifications and skill sets that will provide job seekers with the skills that are in demand by employers and are critical to the economic recovery,” she said. States and territories need to sign up to a new Heads of Agreement to access JobTrainer funding, with the agreement setting out immediate reforms to improve the vocational education and training sector and providing the foundation for long term improvements as outlined by the Prime Minister in his recent speech to the National Press Club.
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MHD NEWS
Combi-CS pedestrian stacker wins prestigious IFOY Award
Martin McVicar, CEO and Co-founder of Combilift.
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ombilift is a winner at this year’s IFOY Awards 2020– one of the most prestigious and hotly contested international awards in the materials handling industry which honours the best products and solutions of the year. The company won the Warehouse Truck Lowlifter Category with its innovative Combi-CS pedestrian counterbalance stacker. The Combi-CS is the only pedestrian counterbalance stacker that will operate in a conventional reach truck aisle for space saving and productive storage
and handling. It features Combilift’s unique, internationally patented and award winning multi-position tiller arm which can be turned to the left or right of the unit to position the rear drive wheel, allowing the operator to remain in the safest position- at the side of the machine rather than at the rear as is the case with other pedestrian stackers. This ensures optimum visibility of the load and surroundings as well as guaranteeing maximum safety in areas where other personnel or members of the public may be present. Due to the current circumstances, the hundreds of people that normally attend the IFOY ceremony could not get together personally, so the organisers rolled out the virtual red carpet for the winners on the Internet on July 13th, 2020 at www.ifoy.org. IFOY founder and Executive Chairperson of the IFOY Jury Anita Würmser said: “Special times require special solutions and this year’s IFOY Awards were dedicated to the best innovations in intralogistics and moreover to the people who
make intralogistics happen.” Finalists’ products underwent stringent IFOY audit and innovation checks by industry experts and journalists from leading logistics media from 19 countries also tested and evaluated the equipment for qualities such as technology, design, ergonomics, safety, marketability, customer benefit and sustainability. Some of the jury’s comments on the Combi-CS were as follows: “The Combi-CS is a really compact smart pedestrian operated truck and a nice hands-on solution. It offers significant added value in terms of narrow aisle operation and safety in confined environments. It is a customerfocussed solution with a very high level of market relevance.” Combilift CEO and Co-founder Martin McVicar said: “On behalf of the whole Combilift team I am delighted to receive the IFOY 2020 Award and proud that this innovative product has been recognised as valuable solution for the intralogistics sector. We extend our thanks to the IFOY jury for selecting us for this important award.”
Qube appoints new Director to the Board
Q
ube has appointed Jackie McArthur to its Board of Directors. Jackie has more than 20 years’ experience at executive and board level roles in general management and strategy, supply chain and logistics, operations, food and packaging manufacturing, emerging brand issues and crisis management, corporate social responsibility, governance, engineering and information technology. Jackie has been the Managing Director of Martin-Brower ANZ, a global leading distributor and supply chain services provider. She has also 8 | MHD AUGUST 2020
held various senior executive positions with McDonalds, both in Australia and overseas, including Vice President of Supply Chain for Asia, Pacific, Middle East and Africa and as Senior Vice President Chief Restaurant Support Officer and Vice President Supply Chain Director. Jackie was the 2016 Telstra NSW Business Woman of the Year and overall 2016 Telstra Business Women’s Awards – Corporate and Private National Winner. She has completed the INSEAD International Executive Program and has a Bachelor of Engineering from the University of Sydney and is also a Non-Executive
Jackie McArthur will join Qube’s board. Director of Ingham’s, Tassal and Invocare and a member of the AICD. Qube Chairman Allan Davies said he was delighted that Jackie had agreed to join the Qube board, “Jackie will bring new perspectives and broaden the skillset of the board.”
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MHD NEWS
CEVA Logistics expands QLD footprint
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lobal logistics provider, CEVA Logistics (CEVA) has expanded its presence in Queensland by moving into Frasers Property Industrial’s Berrinba Logistics Park. With a lease term of five years, the new 20,980 sqm bespoke facility is located at 70 – 88 Australand Drive, Berrinba, part of Logan City Council in greater Brisbane. Troy Whalan, General Manager Queensland for Frasers Property Industrial, said CEVA Logistics is one of Frasers Property Industrial’s longest standing industrial clients with a relationship that spans well over a decade. “We have already developed and leased 10 facilities for CEVA across Australia,” he said. The new QLD facility comprises a 20,514 sqm warehouse, 421 sqm office and 45 car spaces. In Queensland, CEVA
CEVA will move into a new facility in QLD.
currently has a 41,000 sqm warehouse in Berrinba Logistics Park as well as a 30,000 sqm facility in Pinkenba. “The $512 million cash injection from Transurban Queensland in the Logan Enhancement Project continues to improve accessibility in the Berrinba region via its on and off ramps at Compton Road, making it an attractive proposition for national transport
and logistics companies like CEVA,” Troy said. “As a business we are committed to building long-term partnerships with clients built on mutual respect and the delivery of high-tech facilities that create greater business efficiencies.” Phoenix Transport and Huhtamaki will also soon move into their new premises at Berrinba Logistics Park.
New dates announced for ASCI 2021 conference
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he Australasian Supply Chain Institute (ASCI) has announced that new dates have been secured for its ASCI2021 Conference and Awards. An exclusive 10 per cent discount is available to all MHD readers. ASCI2021 will be held on Tuesday 23rd and Wednesday 24th February 2021 at the William Inglis Hotel in Sydney, with the Awards to be held 10 | MHD AUGUST 2020
on the evening of Tuesday 23rd February. The theme for next year’s conference is Supply Chain Vision in the Decade for Action. The United Nations’ “Decade for Action” calls for accelerating sustainable solutions to all the world’s biggest challenges ranging from poverty and gender to climate change, inequality and closing the finance gap. Our global supply chains are not immune to these challenges and have their own set of sensitivities to global political, economic, geographic and social climates. In its third year as the largest gathering of supply chain managers in Australia, ASCI2021 will provide clarity around what is expected of supply chain managers and what the priorities are to act and lead a future-
proof global supply chain into the new decade. Speakers confirmed include: • J anet Salem, Economic Affairs Officer, Circular Economy, United Nations • D eclan Briscoe, Head of Global Logistics Operations, Cochlear • D an Schoenfeld Vice President, ASCM Foundation • E llen Hudreaux, Director Customer Satisfaction and Quality, Global Supply Chain and Customer Experience, Schneider Electric • G ordon Barrett, Global Supply Chain Manager, Nufarm MHD readers can access 10 per cent off conference passes by entering the discount code MHD2021. For more information, visit: https:// www.asci-2021.com.au/.
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MHD PROPERTY
MELBOURNE’S AWARD-WINNING INDUSTRIAL PARK David Black, Director at Salinger DC&W speaks to MHD about a new opportunity to join some of the world’s leading businesses by moving into a ready-to-go 9,000 sqm warehouse and office facility at Melbourne’s Caribbean Park.
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aribbean Park is a wellestablished business destination approximately 30 minutes south east of Melbourne’s CBD. In 2018, the Property Council of Australia’s Innovation and Excellence Awards crowned Caribbean Park as the Best Business or Industrial Park. The park boasts world-leading brands including Toyota, Hisense, Miele and Wesfarmers as tenants and now has more than 4,500 people working in the area.
close to a residential and commercial customer base is strong but supply of these kinds of properties is few and far between,” David explains. Salinger DC&W is excited to offer a rare opportunity to join Melbourne’s award-winning industrial and business hub. Located within Caribbean Park at Scoresby, 8 Lakeview Drive is a 9,260 sqm high-quality industrial property. Furthermore, the property features racking for approximately 7,000 pallets
The property features approximately 7,000 pallets infrastructure and 1,200 sqm of fitted office space.
David Black, Director at Salinger DC&W, a property advisory company specialising in distribution centre and workplace property, says Caribbean Park is well-known for its world-class facilities and excellent location and property opportunities like this are becoming increasingly rare in this market. “With the shift to online shopping, demand for large-scale warehouses 12 | MHD AUGUST 2020
and office fit out, meaning a tenant can move in immediately with minimal capital expense. “This site is set up and ready to go. The racking fit out is less than two years old and the warehouse can house 9,000 pallets when fully racked,” David says. The facility also benefits from a 384 sqm Class 3 Dangerous Goods Store. “If you need some space to hold dangerous goods, then the
infrastructure is already there, saving a considerable amount of time and money,” David says. “Caribbean Park has proved itself as one of Melbourne’s best industrial sites, with global and local organisations running their entire Australian operations out of this facility. It’s a great choice for clients who want to have their distribution centre close to Melbourne’s population and also have their office building at the same site,” David says. Most recently, high-end Hotel chain Hyatt committed to the area and announced that it will build a 170-room hotel at the park, featuring a food market, bar, lobby lounge and fitness centre. The precinct is also a very popular area for businesses to run their office operations from, as it benefits from a number of cafes, restaurants and accommodation. This facility includes 1,200 sqm of fitted out office space, giving the tenant the opportunity to run both logistics and office operations out of Caribbean Park. The 9.7-metre-high warehouse boasts multiple on grade roller doors and recessed dock levellers, an undercover loading canopy of approx. 1,300 sqm, ESFR sprinklers and large concrete hardstand area with onsite B double turning circle. “This is a great opportunity for a tenant to move into a warehouse with a near new fit out and capitalise quickly on any spike in e-commerce they may be seeing,” David says. ■ To find out more, contact Salinger DC&W. Phone David Black on 0412 679 193 or email david@salinger.com.au.
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MHD IN THE WAREHOUSE
MHD Supply Chain
In this month’s MHD warehouse we feature the latest from Toyota, Leopard Systems, METTLER TOLEDO and OPEX.
E D I S IN D H M E TH E S U O H E R A W
ECOSMALL 70B SCRUBBER DRYER The Ecosmall 70B Walk Behind Battery electric powered walk behind scrubber dryer is designed for industrial and commercial food grade applications and is very maneuverable. It is an excellent small to mid-range alternative when there’s no access for a larger ride on unit. This unit has exceptional scrubbing power and drying action. For more information freecall 1800 425 438 or visit hwww.toyotamaterialhandling.com.au
LEOPARD CUBE Leopard Cube is a certified, legal for trade measurement solution that combines a low cost tape measure with a mobile device to easily record dimensional weight for parcel, non-conveyable, palletised, oversized and ugly freight. More info: www.leopardsystems.com.au 14 | MHD AUGUST 2020
MHD IN THE WAREHOUSE
METTLER TOLEDO AXLE WEIGHING SOLUTIONS METTLER TOLEDO axle weighbridges are engineered to suit a variety of truck weighing requirements to capture and accumulate data accurately and efficiently. Control your mass safety management, maximise payloads and ensure Chain of Responsibility compliance today. More info: www.mt.com/vehicle
PERFECT PICK ® A scalable goods-to-person picking solution that dramatically improves the rate and efficiency of inventory moving through a customer fulfillment or distribution centre. More info: www.opex.com
MHD AUGUST 2020 | 15
MHD EVENTS
2020 WOMEN IN INDUSTRY FINALISTS
This year has presented a record number of finalists, proving female representation is on the rise across traditionally male-dominated industries.
I
f your workforce is not as diverse as the world we live in, you are putting the prosperity of your business at risk. Having diversity of thought and experience not only reduces risk but increases ideation and innovation,” Hayley Jarick, CEO at Supply Chain Sustainability School says. The 2020 Women in Industry Awards recognise and reward the achievements of women working within various industries including logistics and transport. Representing the supply chain industry, Marie Varrasso, Head of Supply Chain at Officeworks, is a finalist for the Mentor of the Year award and Hayley Jarick, CEO at Supply Chain Sustainability School is a finalist for the Industry Advocacy Award. Representing leadership in industrial property, Stefanie Frawley, Director of Portfolio Management at Colliers International is a finalist for Business Development Success of the Year Award.
Advocacy, professionalism and empowerment of women in supply chain, logistics and transport is what it means for Hayley to be named a finalist in this year’s Women in Industry awards. “Firstly, we need to stop asking what women can do,” Hayley, a finalist for the Industry Advocacy Award says. “We need to stop asking what underrepresented groups can do to increase their representation and start asking leaders, why aren’t women taking advantage of your opportunities and what are you going to do about it?” Hayley says. She thinks that setting targets, goals or quotas incentivise organisations to address systemic issues that cause imbalances and
NAVIGATING SUPPLY CHAIN CHALLENGES Marie leads supply chain operations at Officeworks, and she says she was inspired by her father who was a forklift driver with the Victorian Railways. “He would bring home the monthly newsletters that talked to international exports, ships, planes and trains, and how Australian raw materials and staples would be exported overseas,” she says. Marie has helped navigate her organisation through major disruption during the pandemic. She believes resistance is the word of the year and being honest and transparent with your teams builds trust. “These qualities empower
one of the most under-utilised resources.” Her goals are continuing to mentor and pass on knowledge to the next generation of leaders, especially in her organisation. Stefanie is honoured to be named a finalist alongside other high achieving women within the industry and she too values the work she does for clients of Colliers International and has stepped outside of her comfort zone to learn new skills to navigate challenges and lead successful operations. “Women should not feel they cannot or should not leverage opportunities as they present themselves, whether it be a promotion, a new challenge within their role or asking to be involved in a particular project,” Stefanie says. Being recognised for her business development has highlighted her natural strengths in negotiations and believes support is required at all levels of management. “Being a mother of two young children requires a supportive manager and supportive clients, and they recognise the need for flexibility which has allowed me continue to grow and succeed in my career,” she says. Workplaces need to consider how their employees work and provide more flexibility. “As an example, a senior resource in a part-time capacity can provide output greater than a less experienced resource, however workplaces needs to be open and willing to change their own perception as this can be rewarding for the workplace and allow women to keep the balance, particularly after having children,” she says. The evidence across the board of finalists is clear – it’s not just the right thing to do, increasing female representation has significant economic
enable the use of innovative programs to remedy the problem. “Measuring and reporting ensure that outcomes are being rewarded, not effort. If your board is 100 per cent men, then you have been unconsciously recruiting men. There are more than enough competent,
us as women, we are equipped to handle anything,” she says. “We need to start by ensuring we build an inclusive work culture, source gender diverse talent, understand what unconscious bias is, and ensure equal compensation. Female talent is still today
and business benefits. Challenging the way people think and learning from others of diverse backgrounds will also enrich workplaces situated in these industries and it’s time to acknowledge and allow platforms for different viewpoints, ideas, market insights. ■
ADVANCING DIVERSITY IN SUPPLY CHAIN
16 | MHD AUGUST 2020
Marie Varrasso, Head of Supply Chain at Officeworks is a Mentor of the Year Award finalist. willing and able women ready for you when you are ready,” Hayley says. She is utlising her finalist nomination to encourage men in the supply chain to start with their leadership and unlock opportunity. “Equalise the gender composition on your board and your executive, even if at first it looks tokenistic. This will show potential female employees you are serious and help to drive out subconscious biases in your culture from the top down that are toxic to diversity.”
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MHD COVER STORY
AT THE FOREFRONT OF AUSTRALIA’S MATERIALS HANDLING MARKET
MHD sits down with Steve Takacs, President and CEO; Cameron Paxton, Vice President and Chief Operating Officer; and Rob Watkins, Director and Chief Financial Officer of Toyota Material Handling Australia to find out about how the business put its people and customers first during COVID-19, the new products set to launch in Australia later this year and why they see strong growth ahead.
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ince the start of the coronavirus pandemic, there has been a spotlight on logistics and materials handling. Demand for quality service, experienced engineers and the highest standard of forklift trucks is more critical than ever
for an industry that is dealing with unprecedented volumes. With more than 800 team members, Toyota Material Handling Australia operates in a number of sectors that have seen significant growth since COVID-19, including grocery, logistics,
Left to right: Cameron Paxton, Vice President and Chief Operating Officer; Steve Takacs, President and CEO; and Rob Watkins, Director and Chief Financial Officer at Toyota Material Handling Australia.
18 | MHD AUGUST 2020
pharmaceutical and retail. The grocery retail sector has ramped up its operations to meet record levels of consumer demand, and online shopping has put pressure on logistics providers and retailers to move goods around the warehouse in a fast, safe and efficient manner. Forklift trucks are at the very core of being able to deliver on increasingly demanding consumer expectations. Deemed as an essential service during the pandemic, Toyota Material Handling Australia (TMHA) has been working tirelessly to service its customer base in Australia during this challenging time. Steve Takacs, President and CEO at TMHA says when COVID-19 first hit Australia, the management team got together and established two priorities for the business. “Our two priorities during this time have been to service our customers and to ensure that we keep every team member in their job,” he says. Steve is proud to report that TMHA hasn’t let one employee go during the economic challenges of COVID19. He recognises the ongoing COVID challenges that are faced daily and says TMHA’s ability to serve its customers hasn’t been compromised at all during this time. He proudly states that the management team asked everyone to get on, stand tall and continue do their best. “People have taken great pride in
MHD COVER STORY
TMHA has been growing its market share and positioning itself as a corporate player in some of Australia’s largest industries. knowing that they are an essential service and that they have helped keep the economy moving in their communities,” Steve says. Communication has also been strong across the entire business during COVID-19 and Cameron Paxton, Vice President and Chief Operating Officer at the company recalls that when the border closed between Victoria and New South Wales, within 45 minutes the executive team had organised meetings with the branches that would be most impacted by this decision. “At our Albury branch, we have customers on both sides of the border. We have ten technicians working out there so we were very agile and worked out how we would continue to serve our customers on both sides of the border while the Government worked out issues around permits,” he says. For Cameron, TMHA’s commitment to keeping the team operational, servicing its customers and practicing agility has been the secret to the leading forklift provider’s success. Steve reiterates this and says that one of the main ingredients of success for TMHA was that it has a long-established successful business model. “We didn’t have to make significant changes. We have fundamental business practices that we do on a daily, weekly,
“
People have taken great pride in knowing that they are an essential service and that they have helped keep the economy moving in their communities.
”
monthly and annual basis that keep us strong and leaders in our field,” Steve says. For the last ten years, TMHA has been growing its market share and positioning itself as a corporate player in some of Australia’s largest growth industries including grocery, logistics food manufacturing and pharmaceuticals. “We are heavily entrenched in these industries so if anything, our workload has increased during COVID-19,” he says. While some customers have introduced additional rental equipment, Steve says the extra support really came from the service team. “Many of our customers started using the equipment they already had on site nearly twice as much as before COVID-19 as they ramped up their operations. Therefore, our servicing increased and we needed to be on site to ensure that the equipment was performing at its very best to support these customers in high-growth industries,” Steve says.
LONG-TERM LOYALTY It is not uncommon for team members at TMHA to have served in the company for more than ten years. “We have a saying around here ‘it’s harder to get out of the place than it is to get in’, which gives MHD AUGUST 2020 | 19
MHD COVER STORY
Toyota’s service technicians at the 2019 Toyota Material Handling Australia National Skills Contest.
you an idea of how long team members stay with us,” Steve says. This can also be seen in the executive team, with Cameron working at Toyota for 24 years. “From a personal perspective I still feel like I can make a difference. We never rest on our laurels at TMHA and we are continuously looking for ways to improve the business and move forward. This business has invested heavily in me and I’m very grateful for that,” he says. At TMHA it’s about making sure the person is the right fit rather than searching for candidates with a long list of qualifications. “A qualified person does not always make a great employee. First and foremost, we look for the right person. From there we develop them, invest in them and provide ongoing training to help them throughout their career,” Steve says. The support doesn’t stop at professional development, at TMHA there is a focus on wellbeing outside of the job and Steve says that the business is committed to helping with all facets of an employee’s life. “We offer initiatives like help line and counselling. We invest heavily in our people to make sure they are stable in all aspects of their life,” he says. This can be seen during COVID-19 when TMHA sent all employees to their home a parcel consisting of puzzles, toys and 20 | MHD AUGUST 2020
“
Even though we are a very large organisation, it’s like being part of a family and there is a real undercurrent of caring for our people.
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snacks for the family. “We recognised that during lockdown people couldn’t do the normal activities that made them happy, so we wanted to keep people positive and engaged and that was really well received,” Cameron says. Furthermore, TMHA ran onsite childcare but when COVID-19 hit they quickly moved this online which was also well received by team members. “Even though we are a very large organisation, it’s like being part of a family and there is a real undercurrent of caring for our people,” Rob Watkins, Chief Financial Officer at TMHA says.
MINIMISING RISK WITH DIVERSIFICATION Recognising the need to diversify and an opportunity to offer the well-known service, performance and reliability in the materials handling sector to other industries, Steve says TMHA is excited to move into new territories. “We have had a couple of products in our range that were orphans, they were really out there on their one. But we’ve taken these products and put a family around them so as to strengthen the business,” Steve explains. Referring to the new Huski Construction Equipment and Taylor Dunn ranges, Steve says TMHA can use its expertise to move into new areas of business.
MHD COVER STORY The Huski range features skid steers, scissor lifts and mini excavator products and is set to fully launch in Australia in September this year. Additionally, TMHA is the authorised dealer of all Taylor-Dunn transport and materials handling equipment with the exception of Victoria. “We had a tow tug that operated in the airports, but again this was an orphan product, so we decided to introduce more of these products into this range,” Steve says. This has been a strategic move for TMHA, moving into different segments ensures that if one industry is to face recession then the other might be stronger so it minimises financial risk. An added benefit is that TMHA’s engineering expertise lends itself very well to these industries. “Our engineers are all electro-mechanical experts, so if they can fix a forklift they can also fix an excavator,” Steve says. TMHA is committed to growing these new segments of the business and is currently training up engineers and product managers on the products.
a business we have invested time and revenue into producing equipment for the future. Our factories are producing new and better ways to work, and we are an absolute leader in this exciting sustainable option,” Steve says. Electric forklift usage has grown exponentially in Australia over the past ten years. According to Steve, ten years ago 60 per cent of forklift trucks were IC, but now more than 50 per cent are electric. “In Europe, it’s closer to 80 per cent and in the forthcoming years Australia will reach 70 to 80 per cent,” Steve says. According to Steve, TMHA is the only forklift provider in Australia to have two hydrogen fuel forklifts currently in operation in Australia and is committed to growing this area of the business. Sustainability is another area of importance for TMHA, with both the manufacture and running of the forklifts important. “We use primarily lead acid batteries which are 100 per cent recyclable. Our forklifts are also completely recyclable, and we can boast a run time of two shifts with one battery,” Steve says.
TMHA is heavily entrenched in the grocery and food manufacturing industries.
ENGINEERING EXCELLENCE A major priority for TMHA is research and development. The business invests heavily in new products and new ways of improving existing products. One area where this is evident is in TMHA’s major shift from Internal Combustion (IC) to electric trucks. “Hydrogen fuel cell is a focus for Toyota Material Handling globally. As
COMMITTED TO THE AUSTRALIAN MARKET TMHA sees significant growth across the country and has made investments to mirror this sentiment. “Over the past five years we have ingrained ourselves in the Australian market. We have made significant investments and commitments to position ourselves here as a leader for the materials
handling industry,” Steve says. The company has moved away from renting facilities, and has built a purpose-built facility in Adelaide, with Melbourne set to follow. “Our Adelaide branch is an absolute showstopper. We purchased the land and built it up from nothing. We had the site specifically designed to accommodate our growth for the next 20 years,” Steve says. The South Australian site comprises of 12,600 sqm, a roofed area of 4,546 sqm and a dedicated training facility and demonstration area. Sixty-eight team members are employed at the site and it retails the entire TMHA range as well as the Huski Construction Equipment range. “We will be doing the same thing in Melbourne and Sydney and feel that this is a sign of confidence to our customers. They know that we are here for the long-term and we have committed to the infrastructure in Australia,” Steve says. Added to these new sites, TMHA has also built a Customer Experience Centre in Sydney. “We can bring a customer in and within an hour they will know everything about the company, from our work health and safety record through to our social contributions to charities to our total package of products. We want them to walk out and understand our capabilities and our depth.” Looking to the future, Rob says that TMHA is committed to sustainability. “A long time ago we implemented a long-term sustainability plan for our business and our people. We have never sacrificed long-term sustainability for short-term profit, and we will continue along those guidelines,” he says. For Steve, there is a huge upcoming opportunity with the new Huski Construction Equipment products. “We have reached a point where we are already doing over 1,000 units a year. We have now recruited sales managers in every region and look forward to continuing to grow these fantastic products,” he says. He also sees opportunity for growth in regional Australia. “Some of the regions are suffering at the moment but they will bounce back and as ever we will be there to support our customers,” he concludes. ■ MHD AUGUST 2020 | 21
MHD MATERIALS HANDLING
IMPROVED WAREHOUSE FLEXIBILITY Dematic has launched its new TT Series AGV, offering high-accuracy and agile navigation for improved flexibility within the warehouse. MHD finds out more.
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ith a unit weight of less than 500 kg, and a capability to carry 1,500 kg, the new TT Series AGV is the smallest and most agile AGV in Dematic’s range. TT Series AGVs are available as a standard with a table-top lift, optional conveyor or custom model, and run on high performance 24 V lithium batteries with automatic opportunity charging. The AGV’s high-precision navigation of the warehouse floor, combined with its dexterous, flatsurface design allows it to utilise any warehouse space, eliminating the need for extensive use of pallet conveyors. With a smaller turning circle than a forklift truck it can easily manoeuvre in tight spaces. “The robust design of the TT Series AGV means it can withstand the typically challenging environment of a warehouse, all whilst providing a 360° safety field of protection with automatic sensors to detect any obstruction and enabling it to co-work with operators and forklift trucks,” Tony Raggio, General Manager for AGVs at Dematic says. “The TT Series is a game changer for supply chain operations looking to make the most of a smaller warehouse space, with the reliability of a flexible, high-accuracy AGV.” The TT Series AGV provides an open plan automated solution, with flexibility to cater for any ongoing business demands. The TT Series AGV offers the latest in navigation technology, using laser and natural guidance or floor embedded QR codes to travel around the warehouse with accurate positioning – travelling at speeds of up to 2 metres per second. As 22 | MHD AUGUST 2020
The new AGV has a wide range of applications in the warehouse.
operational requirements change, as with all Dematic AGVs, the TT’s paths can be reconfigured. It has a wide range of possible applications within the warehouse, including point-to-point transfers, conveyor to conveyor, production lines to delivery, robot palletising and picking cells, empty and full pallet handling, raw materials handling and pick and go. “The integration of AGVs in warehouses has become increasingly beneficial for industries looking to
increase their productivity – offering 24/7 operations with incredible accuracy, improved fulfilment efficiency, and reliability to optimise all channels of the supply chain. The new TT Series AGV is a great new addition to Dematic’s popular AGV range,” Tony says. The Dematic AGV Manage Warehouse Control System (WCS) can communicate with any existing WMS of PLC system, as well as connect directly with automatic palletisers and robot cells in the warehouse. ■
MHD E-COMMERCE
COLLECTING AUSTRALIA’S MOST IMPORTANT DATA Rose Yip, Head of E-commerce Data Analytics at Australia Post tells Brittany Coles about her online shopping market insights and how the enterprise uses the power of data and analytics to strengthen the national supply chain.
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ustralia Post really has become the ‘Business Keeper’ of the national economy,” Christine Holgate, Australia Post Group Chief Executive Officer and Managing Director said in July, following a new analysis that found Australia Post powered an estimated $2.4 billion e-commerce boom during the height of the COVID-19 crisis through its parcel delivery service. An email or text that reads “your delivery is coming today” makes millions of Australian’s eyes light up and eagerly wait at their front door like a puppy in the window. In fact, over 5.2 million households shopped online in April alone and received their parcel from an Australian Post courier. Little do consumers know, up until their package was delivered in their hands, that parcel was part of various data touchpoints that helped shape an analysis into the current state of the e-commerce industry.
Rose Yip, Head of E-commerce Data Analytics at Australia Post says the term “unprecedented” has been worn out, especially used for describing the growth of e-commerce since the COVID-19 pandemic first hit our shores. “I’m going to use the word surreal to describe the data we have encountered since the moment state governments ordered stay at home restrictions,” she says. Rose says data analysis is extremely crucial at this very point in time. What the new norm means for supply change is likely permanent change. “Back in the day, we used to prepare for the Christmas peak well in advance. This happened overnight, and now the supply chain has to manage living Christmas every day,” she says. The Deloitte Access Economics analysis released in July found that during the peak COVID-19 period from the three months to May 2020, Australia Post
With Victoria in its second lockdown, Australia Post is anticipating further e-commerce growth.
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Rose Yip is Head of E-commerce Data Analytics at Australia Post. facilitated an additional $2.4 billion in e-commerce compared to the same time last year, with communities in regional and remote Australia accounting for almost a quarter of the business. A month prior to this new market research, Australia Post released its annual Inside Australian Online Shopping Report. Rose says the report is now in its fifth year and believes it’s the most important one compared to previous annual reports because it provides businesses with a macro view into the acceleration of e-commerce. The report’s findings are collected from near real time data from parcels, Rose says every single touch point the parcel goes through until the customer receives it, creates a valuable data point. With Victoria now in its second lockdown that is set to continue until mid-August, Rose and the data analytics team at Australia Post expect a further widening of thriving e-commerce activity, that some would continue to label as unprecedented demand.
MHD E-COMMERCE BUSIEST PERIOD IN AUSTRALIAN ONLINE SHOPPING HISTORY Sales peaked at 135 per cent YOY over Easter, making the holiday weekend Australia Post’s biggest period in online shopping history. Rose claims from a data point of view, the e-commerce boom virtually happened overnight in early April. “It was certainly an interesting time,” Rose says in regard to the unexpected surprise that Easter period overtook the 2019 Black Friday/ Cyber Monday shopping event as the busiest period in Australian online shopping history. “Due to constant change, we had to start looking at numbers daily. To constantly see numbers climbing before your eyes, we reached a phase where it definitely peaked around Easter,” she says. The traditional peak period which includes Black Friday and the preChristmas rush is now overshadowed with the number of purchases in the 30 days to April 30 up 6.8 per cent when compared to the 30 days to 18 December 2019. Ben Franzi, Australia Post General Manager Parcel and Express Services stated in the annual online shopping report that Australia Post predicted that by 2025 online shopping would account for 16–18 per cent of total retail spend, but the recent growth its seen suggests the pandemic has brought this forward. The Deloitte Access Economics analysis found the number of parcel deliveries increased by 26 million on the 2019 figures, with activity in regional Australia increasing at a faster rate than metropolitan areas. According to findings in the analysis, food, liquor, homewares and appliances stood out as the top categories for growth in Australia Post parcel deliveries in the COVID lockdown, while variety stores and fashion retailers gained sales momentum during the three-month period. Rose says as the COVID lockdown replays in Victoria with effects felt across the nation’s supply chain, the only channel businesses can rely on during this time is online. “Our annual report this year gives businesses a macro view of what’s going on right now, but more importantly in understanding the speed of e-commerce and what it means for them.” The second half of 2020 has to be focused on ensuring temporary measures become sustainable for businesses situated in the supply chain.
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Back in the day, we used to prepare for the Christmas peak well in advance. This happened overnight, and now the supply chain has to manage living Christmas every day.
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to homes. This was a 9 per cent increase in share compared to the whole of 2019. 10 per cent of deliveries in 2019 were delivered to workplaces. In April 2020, that proportion was only 4 per cent. Rose says whilst we will see workers gradually make a return to the office, social distancing measures may mean that flexible working remains prevalent, making choice, convenience and flexibility in delivery even more important. “As stay at home restrictions ease, we will most likely see an increased demand for alternate delivery options,” she says. “It’s going to be likely that most workers will have flexible hours, working from home and also at their office. Even though alternate deliveries are still adjusting to changing consumers’ lifestyles, it’s going to be popular moving forward.” Findings in the 2020 report suggest Click and Collect also continues to grow, as it alleviates the cost versus expediency dilemma for sellers and buyers. “The number of Click and Collect shoppers grew by seven per cent between July 2019 and March 2020 when compared to the 2019 financial year,” the report states. Rose believes with activity in regional Australia increasing at a faster rate, the centre of attention not only should be on the demand side, but also needs to be on the supply side. “If you think about businesses that want to leverage online customers, you can sell from anywhere, so e-commerce growth is an absolutely massive advantage for regional areas,” she says. The tragic bushfire season that affected
HOW AUSTRALIANS WANT THEIR GOODS DELIVERED It would appear that the pandemic hasn’t only changed Australians’ online purchase frequency; it has also impacted when they’re buying and how they’re receiving their goods. In April 2020, 91 per cent of all deliveries went MHD AUGUST 2020 | 25
MHD E-COMMERCE the states of New South Wales and Victoria before the peak of the pandemic has enforced a strong economic drive towards supporting local goods. “Local has become a big focus for Australia as a whole, I think it has shone a light on the importance of local supply,” Rose says. “We survey about 2,000 customers a month to form qualitative data to get a complex understanding behind buyer behaviour, including what they are finding challenging which you can’t get from pure numbers alone.” The 2020 report revealed that very remote Australia registered more than 56 per cent growth YOY in April 2020, compared to 10.8 per cent in 2019. According to the report, Victoria grew 111 per cent YOY in April, compared to 19.9 per cent in 2019 and the Australian Capital Territory and New South Wales grew by an astonishing 102 per cent and 98 per cent YOY respectively. In terms of Australia’s online shoppers’ hotspots, Point Cook in Melbourne’s west retained its position as the number one spot for online shopping for the fifth time and seven of the nation’s top 10 suburbs recorded growth above the national average. However, despite the location, one factor is universal across the sunburnt country and it’s that people want to know what’s happening with their parcels and the challenge is adapting to consumer demands.
An email or text saying “your delivery is arriving today” is read with excitement and anticipation.
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IT’S CHRISTMAS EVERY DAY UNTIL CHRISTMAS DAY “This industry-wide shift has been as dramatic as it has been swift, and will no doubt alter future buying behaviour. While the current acceleration we’re seeing may begin to steady, many of the changes we’ve seen are likely here to stay through the rest of 2020 and beyond,” the report states. Rose says she’s lost count how many times she has been asked and thought about the foreseeable future for e-commerce growth in Australia leading into the traditional peak holiday period in November and December this year. “My gut feeling at the moment is that if we can sustain the volumes we are
fulfilling now, especially in the second wave period for Victoria, my sense is that e-commerce will undoubtedly stay strong,” she says. “April was a very surreal period; I think a lot of the data we have seen in recent months will hold through towards the end of the year and go into 2021. I think a lot of shoppers will be shying away from physical stores, I can imagine shoppers will continue to avoid crowded shops for as long as possible.” Prior to joining Australia Post, Rose was a Director at Deloitte Analytics, specialising in customer and strategy, product assessment and network planning. She always had a curious mind and thirst for data solutions and is proud of her team at Australia Post who continue to help businesses maintain their competitive advantage by identifying market opportunities through leadership publications, such as the Inside Australian Online Shopping report. “This year’s report has certainly been a beneficial tool that businesses have been looking out for. Our biggest priority was keeping it as relevant as possible and focusing on current numbers to help provide up to date insight and make plans for businesses navigating through the new norm,” Rose says. “Analysing data as close to real time as possible is so important, we are already monitoring trends from hotspot suburbs in Victoria who are in lockdown.” Back in April, people were thinking by July the economy would be on the road to recovery but as more businesses leverage consumer demand by expanding product offerings to include face masks and even hand sanitisers, there is no sign of normalisation ahead anytime soon. ■
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MHD E-COMMERCE
THE SECRET TO BEAUTY The CEO of Australia’s fastest growing hair and beauty company reveals the secrets to the beauty business. He sits down with Brittany Coles to explain how he went from beginning his company as a teenager to housing 17 leading brands under one warehouse by the age of 30.
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ur B2B died during COVID-19 lockdown but our B2C sales went through the roof by 460 per cent. We usually hit two million sales a month, but in the week before the end of the financial year, we had reached 1.1 million customers in just seven days,” Ammar Ahmad, CEO of AMR Hair & Beauty says. AMR is Australia’s fastest growing hair and beauty supply enterprise and is becoming one of the nation’s leading e-commerce businesses. In the past three months, Ammar Ahmad, CEO of AMR Hair & Beauty says his business has experienced product sales that would usually take more than a year to achieve. During the peak COVID-19 period in Australia from March to June, AMR Hair & Beauty sales were up more than 250 per cent with upwards of 240,000 users a month on its website. According to Australia Post’s 2020 E-commerce Industry Report, beauty shoppers are among the most engaged online. They are increasing their purchasing frequency and demonstrating an increased confidence in buying these items online. The beauty e-commerce industry is up 18.8 per cent year-onyear and online transactions account for more than 53 per cent of sales for this industry. Though Ammar has already had a fairy-tale ending, this isn’t his final chapter. The hair and beauty supplier started AMR Hair & Beauty in 2004 at 28 | MHD AUGUST 2020
the age of 14, and now he has branched out to sell an array of products across 17 websites that are fulfilled from one 22,000 square metre warehouse in Ingleburn, Western Sydney. The company now boasts a multi-million dollar annual revenue figure. “Beauty doesn’t die. I have four sisters at home and when they have fifty bucks and they’re hungry, they will spend every cent on make-up to look beautiful instead of eating. Beauty
is one of the highest priorities,” Ammar says. As a teenager, Ammar worked in hair salons and as a nighttime cleaner and noticed that there was a large gap between quality products and low pricing. The company aims to source, import and supply the finest quality products from across the globe and deliver them directly to salons and customers Australia-wide. From beginning his business in a van at the age of sixteen,
MHD E-COMMERCE going salon to salon, door-by-door, to now becoming a multinational business that services hundreds of thousands of salons and consumers across the country, AMR Hair & Beauty’s continuing success meant a shift in its warehouse management solution (WMS) to cope with the constant product and sale growth.
WAREHOUSE MAKEOVER Every make-up user knows that although eyeshadow, blush and mascara are important tools, the key to a perfect face is all in the foundation. Two years ago, the company underwent a major IT restructure in order to leverage its omnichannel position in the market. “When we moved into our new building, I lost $4.8 million dollars with a 3PL who promised us they could deliver on time, we realised in the overhaul that 3PL wasn’t for us and we wanted to strengthen our independence,” Ammar says. “We were using an in-house developed ERP that simply went from our WordPress site. We had a WMS, but it was really slow and wasn’t cloud-driven and would randomly turn on and off,” he explains. AMR Hair & Beauty simultaneously runs 17 different websites that sell different products from beauty salon equipment, shoes, tea, watches to toothbrushes. “We needed a WMS that was able to handle all websites from the same warehouse and
During the peak COVID-19 period, AMR Hair & Beauty sales were up more than 250 per cent.
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We needed a WMS that was able to handle all websites from the same warehouse and Microlistics came back as the only company who were the perfect fit for picking multiple products for multiple clients 24/7.
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Ammar Ahmad is CEO of AMR Hair & Beauty. Microlistics came back as the only company who were the perfect fit for picking multiple products for multiple clients 24/7,” he says. Ammar says although his business operation isn’t 3PL, it was important that the WMS he was going to employ was able to be seamlessly integrated with its multi-channel needs that require different priorities. “Some businesses we promise dispatch within the hour and for others we have a few days up our sleeve, so meeting our diverse needs was a critical tick to my box when we discovered the capabilities of Microlistics,” Ammar says. Ammar strongly advocates for unification in the warehouse. He claims the seamless approach for his company is not having designated pickers for certain brands or products as that causes confusion and unnecessary labour. Now, any picker has access to any product in the warehouse and although they are segregated and categorised accordingly, it’s all under the same roof with a universal WMS. “In our warehouse now, our pickers all walk around with the same handheld picking device, so if you’re ordering a watch or a hair dryer, your order will go out first because consumers hate waiting,” he says. “Microlistics is one of the only WMS that already has an API for shopify, Magento and WordPress e-commerce platform software that our brand websites use.” Ammar wanted adaptable diversity for his businesses 14,500 Stock Keeping Unit (SKU) that are a mixture of furniture, consumables, hair and beauty products. MHD AUGUST 2020 | 29
MHD E-COMMERCE In May this year, 40,500 pick lines per month were recorded with 1,400 receipt lines in June. Ammar is hoping that soon all his products will be able to be picked for same day delivery and with his successful track record, it may not be too far off. “We’ve always invested in good data and Microlistics data reporting is so simple to use. Everything is precise, and this is the first WMS I can comfortably say has never let our operation down. We went from 25 warehouse pickers to just five for the entire company.”
BREATH OF FRESH HEIR Ammar says rotational products are key, as is rapid delivery, and his businesses use a program called Smart Freight, a carrier management module complimentary to the WMS, to ensure product orders reach customers in the shortest time possible. “Smart Freight knows the best carrier to reach the delivery address of an order, and because it is integrated with Microlistics, the WMS sets priorities for picking and despatch to ensure we hit all our delivery targets,” he says. Every website that promotes one of the 17 brands Ammar operates is run independently. “We want to keep every company and its brand exclusive. There are teams in house that run each product range and they’re all competing against one another, it’s quite an exciting environment,” he says.
While nail shops and salons closed during COVID-19, many of AMR’s customers made their own at-home set ups.
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Ammar says the key to consumer satisfaction is customisation.
Ammar’s most recent brand launch will be titled ‘Heir’ and will be a range of exclusive watches for consumers. “We have different boxes for different products, so if you order an Heir watch or a packet of tea from the Tea Centre website, you’re always going to get different cartons and you’ll never think they’re shipped from the same warehouse,” he says. He prides his business growth on his team and their ambition. “All of my start-up businesses are ideas from my key personnel. I believed in their talents and turned around and said look, I’ll invest in your brand and let’s keep it under one warehouse, purely because they have helped me grow AMR Hair & Beauty and I want to see them explore their own passions,” Ammar says. He believes having the ability and the agility for your WMS to adapt to new products and changes is fundamental to a smooth business operation. Ammar says his brands
are mainly imported from Italy, South Korea and China and supply chain disruption during COVID-19 lockdown measures turned the company upside down overnight. “Nail shops and salons were closed, which put a massive halt to our B2B sales. But within eight weeks, consumers were madly purchasing salon products to make their own at home set-up whilst beauty parlours they usually attend were closed to the public,” he says. “Different times mean different adjustments to consumer and business needs that are reshaping our inventory management. We don’t want to step out of our boundaries too much, but we want people to walk into salons and say ‘Hey! I want this brand.’” Ammar says. He thinks the secret to a consumer’s heart is customisation and being as quick as possible to attend to their demands. Ammar says social media has boosted his businesses’ service level and personalisation through messages and packaging has brought in more online customers every day. “When you hit them in their heart, you find that they will share their positive experience to their online following and we’re working on that a lot more,” he says. Ammar is also keen to tap into supply pharmacies as more competitors battle to stock hair and beauty brands but is confident that the beauty industry is as beautiful as ever. “I’m always developing my hair and beauty knowledge. If we’re able to keep fulfilling from our one warehouse we’ll be able to tell all hair care operators to bring their stock to us and we will fulfil it for you at a very reduced rate and then the long term goal will be landing a place on the Australian Stock Exchange.” ■
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MHD MATERIALS HANDLING
SETTING THE STANDARD FOR SAFETY
For Combilift’s Managing Director Martin McVicar, Australia sets the benchmark for safety. Here he reveals some of the latest initiatives that the leading forklift provider has put in place to keep people safe. Combilift’s forklifts are manufactured in Ireland to the highest safety standards.
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uring National Forklift Safety Week in June, Martin McVicar, Managing Director at Combilift took the opportunity to sit down with MHD to discuss how the leading forklift provider is committed to innovation and development around safety initiatives. For Martin, Australia is one of the safest markets that Combilift operates in. “Of all the markets, safety is very important in Australia. It’s at the top of everyone’s agenda,” he says. Safety is also at the top of the agenda for Combilift. The business currently invests more than seven per cent of its annual turnover into research and development. “Much of this innovation is to improve safety for all of our customers and forklift operators,” Martin says. Combilift’s forklifts are manufactured at the company’s headquarters in Ireland, and they are exported to more than 85 countries worldwide. Providing value to its customers by way of innovation and product development, Martin says
Combilift is leading the way when it comes to safety. This can be seen in the Combilift’s range of pedestrian stackers. With lift capacities up to 2,000kg, the Combilift pedestrian stacker is an economic and safe option for lifting and handling in tight spaces. Combilift introduced its pedestrian forklift equipment more than 10 years ago and its first customer for order for a pedestrian forklift truck in Australia came from iconic Australian retailer Bunnings. “While we’re not the first to design pedestrian forklifts, with the Combilift pedestrian forklift the operator does not have to stand behind the vehicle. Ensuring they have full visibility, safety and efficiency in mind,” Martin explains. The Combilift pedestrian stacker series is designed so that the operator is on the side of the vehicle, which allows them to be much more aware of their surroundings. “We’ve seen a huge drive towards
MHD MATERIALS HANDLING pedestrian forklifts, but our product offers an even safer option by giving the operator enhanced visibility,” Martin says. Combilift’s first customer for a pedestrian forklift truck in Australia was the iconic Australian retailer Bunnings. “They were delighted that somebody had come up with such a safe and efficient solution,” Martin says. A further safety benefit of Combilift’s forklifts is the multi-directional range, the hardworking and versatile design offers a complete solution. “The multi-directional forklifts can be customised according to your application and preferred fuel type. With the ability to work both indoors and out, the need for multiple trucks is eliminated, which optimises fleet size, increases storage space, enhances safety and improves overall efficiency,” Martin explains. These benefits are well-known to Andrew Walsh, Chief Executive Officer at STEELINE. A trusted group of Australian-owned metal roofing and steel building product specialists, STEELINE manufactures and distributes a range of quality steel structures – from roofing and fencing to skylights, patios and sheds. All of the company’s roofing and building products are manufactured in Australia from the highest quality materials.
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We’ve seen a huge drive towards pedestrian forklifts, but our product offers an even safer option by giving the operator enhanced visibility.
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“When you’re moving steel there is a number of safety issues. The product is heavy, and can be razor sharp,” Andrew says. According to Andrew, Combilifit’s multidimensional forklifts have made a huge difference to the business. So much so that STEELINE has now adapted all of its racking and storage to take advantage of the capabilities that the Combilift product offers. “We’re absolutely delighted with our Combilift products. Once our operators use one of these vehicles, they don’t want to go back to operating any other kind of forklift,” Andrew says. Working in the steel industry, safety is paramount, and the Combilift products offers the ability to lift heavy materials in a very safe and efficient way. Andrew says while safety was a major driver in the decision to use Combilift trucks, it was also a very cost-effective solution. “With the cost of land being so high, it was economics that also attracted us to the Combilift truck. It allows us to better utilise the space we have in a safe manner,” Andrew says. ■ For more information about Combilift, visit www. combilift.com. To find out more about Steeline, visit www.steeline.com.au.
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MHD WAREHOUSING
ENGINEERING EXPERTISE CREATES STRONG FOUNDATIONS MHD sits down APC Storage Solutions to find out why expertly engineered racking and storage solutions are a critical factor in any advanced warehouse facility.
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hile the boom in industrial property in Australia is being heavily reported on, there is much more going on behind the scenes inside these highly advanced warehouses. The recent trend towards online shopping and e-commerce retailers has also led to an increase in demand for advanced storage and racking solutions.
and supplying complex automated rack structures in Singapore, Hong Kong and the Philippines. “In the 90s we were cutting our teeth on some large-scale projects that involved automation in Asia. Now we’re starting to see a significant uptake in these kinds of projects here in Australia,” he says. APC quickly realised that good
storage and automation. With industrial property design becoming more complex and critical to the overall aims and success of the business, there is even more pressure on the storage solutions that provide the backbone of these highly automated distribution centres. Chris says it’s now more important than ever to ensure that any storage or
Recent research by Technavio reveals that the global warehouse racking market is set to grow by $1.94 billion during 2020 to 2024. The research also revealed that by 2024, Asia Pacific will be home to the largest racking market and is looking at a growth rate of 35 per cent over the next five years. Closer to home in the Australia and New Zealand region, there is currently an unprecedented move to automation in logistics and supply chain. This is largely driven by export demand for ANZ products, an increase in population throughout the region, smart land developments and business efficiency demands, underpinning a lot of this is the huge spike in the e-commerce sector. This trend has driven new players to enter the racking and storage market, which according to Sean Prosser, Sales Manager at APC Storage Solutions has created a high level of competitiveness in this market.
engineering was the backbone of successful design, especially when it comes to seismic designed structures. While Australia may have been slow to adapt high density automated industrial properties, that has certainly changed with the likes of many high-profile retail, grocery, food manufacturing and processing, sortation and 3PL facilities looking to completely transform their distribution centres with automation.
racking partner has the experience and qualifications to successfully engineer fit outs of this scale and sophistication. Established in the 1970s, APC Storage Solutions is a proudly Australian-owned business. APC Storage Solutions systems include
SELECTING THE RIGHT STORAGE PARTNER
Much of this move to automation was already taking place throughout Asia in
The industrial property landscape in Australia has changed dramatically. Chris recalls that when APC started working on high density fit outs in Singapore, he didn’t think Australia would need to design these kinds of facilities. “I didn’t think we would ever need to design this level of storage density in Australia because our land was cheap and plentiful in comparison. But this has changed,” he says. Demand for industrial sites close to commercial and residential districts are at an all-time high and the nature of e-commerce is forcing distribution centres to be built as close to the consumer as possible. For APC, this
the 1990s, and APC Storage Solutions has extensive experience in this market. Working on designing, engineering
means re-thinking how to design these kinds of warehouses and ensure that they make allowances for high-bay
AUTOMATION BOOM DRIVES NEED FOR QUALITY-ENGINEERED STORAGE SOLUTIONS
34 | MHD AUGUST 2020
MHD WAREHOUSING pallet racking, industrial racking, raised storage areas, cantilever racking, warehouse shelving systems and automated solutions that are designed to complement each other. “At APC, we are experts in our field. We dedicate a lot of time and resources into research and development and we are highly qualified and experienced engineers in the racking and storage space,” Chris says. For Chris Fudge, Engineering Director at APC, the racking and storage industry has become diluted with a number of providers who are more concerned with driving the costs down rather than delivering a quality product. “Some racking companies are low-cost producers. However, we made the decision years ago that we would always provide the highest standard of engineering and quality. In this industry, there is too much at stake, you can’t afford to modify a design to reach a price, we would much rather use smarter engineered designs to compete” Chris says. With the deployment of automation across many of Australia’s warehouses, there is the opportunity to build upwards and utilise highly technical automation. With this comes
an absolute necessity to build strong and capable structures, Chris says. “If you think about the weights that are going into these structures it’s absolutely critical that they are engineered well. Some warehouses hold around 30,000 pallets, if you think some of those pallets weigh more than a tonne. You can end up with 30,000 tonnes sitting on the racking structure,” he explains. “If you don’t invest in good quality infrastructure to support this, any move into high-level automation is a pointless exercise. In a nutshell if you’re going high and heavy you cannot afford to have inadequate structures,” Chris says. A further issue with automation equipment support structures is if they are not secure and strong enough, they can vibrate. Which in a warehouse that is utilising technology around weighing, scanning and industry 4.0 sensors this can present even more challenges. “If you have parcels, totes or pallets moving through the site and structures, utilising various check points with sensors and weighing machines and your structures are unstable, any level of vibration could interfere with the automation equipment you may have invested in,” Chris says. Many new warehouses are built for
For APC, it is absolutely critical that racking and storage structures are engineered to the highest standard.
seven to ten-year lease periods and according to Sean, the racking and storage solutions should be engineered to grow as the business grows. “By working closely with builders, property developers and consultants, we are able to really understand what the client is trying to do and how their storage and racking solutions are expected to perform in the overall business aim. This also incorporates the dynamic of understanding critical aspects of the building construction itself to ensure correct integration of the rack, additional support structures & associated automation equipment to the building,” Sean says. APC has encountered numerous instances whereby its involvement has negated risk of failure. Where there have been cases of pre-existing building construction designs which do not meet the client’s exact load case requirements, APC’s engineering team has been able to provide alternative solutions to accommodate. “The ability to model and analyse structures in-house ensures the momentum is maintained on the project as well as maintaining compliance to the relevant local standards,” he says. Chris agrees and says that often if these issues aren’t considered at the beginning, there will be significant problems later down the line. “If a customer changes pallet size for example, they will need to change beam levels but if there is no spare capacity in the structure, their racking is no longer fit for purpose and they need to start again. This initial oversight can cost many thousands of dollars later down the line,” he says. For APC Storage Solutions, these kinds of conversations with their clients are crucial to the success of any racking and storage solution. “We engage with our client, we demonstrate that we are a capable engineering company and we work together with them in working out what they want to achieve in the longterm,” Sean says. Sean says APC Storage Solutions always remains true to its values of longevity, commitment and partnership. “Our clients see us as an extension of their business. We’re trusted advisors and we work tirelessly to continuously improve and work with our clients to come up with innovative solutions for the long term,” Sean concludes. ■ MHD AUGUST 2020 | 35
MHD SUPPLY CHAIN
The Asia Pacific Innovation Centre is also home to DHL Applied Analytics, focusing on advanced data analytics solutions for its customers’ supply chains.
INNOVATING ASIA PACIFIC Justin Baird, at the heart of innovation in Asia Pacific, reveals how he will work in the next evolution of logistics and pioneer operations for the DHL network to develop disruptive innovations that will shape the future of the industry.
O
ne of the world’s leading logistics providers has headhunted the man who played a large role in launching Google’s first Android devices in Asia Pacific as DHL’s new Head of Innovation at its only dedicated centre for innovative logistics services in the Asia Pacific region. Justin Baird has been appointed as the Head of its Asia Pacific Innovation Centre (APIC), DHL Customer Solutions and Innovation in Singapore, one of three DHL innovation centres across the globe. Formally headed by Pang Mei Yee, who recently took on the role of Head of DHL Consulting in Asia, APIC is a test bed for emerging logistics-related technologies and a showcase of the latest innovations to reinvent supply chains. Q: Congratulations on your new role. What does a day look like for you as Head of Asia Pacific Innovation Centre? A: My new role is really exciting, and every day is slightly different. Typically, I would be pretty hands on working with the leadership teams of the various DHL divisions, bringing value centric innovation to life for our customers. However, with COVID, a lot of this now takes place on team 36 | MHD AUGUST 2020
calls, virtual collaboration workshops and at times even virtual customer tours. I could also be working with our Trend Research teams to update them on technological trends that we see are evolving and becoming more prominent in the AP region, or I could be catching up with my team and overseeing project implementations for our customers. Most importantly, I could also be spending a whole day in an ideation workshop with our customers, understanding their pain points and finding opportunities where we can partner with them to bring innovation to life in their operations and take their supply chains to the next level. Q: What operations happen at Asia Pacific Innovation Centre? A: We are the regional lead for all customer-focused innovation projects within DHL, which means we work closely with the country and regional offices across various DHL divisions to partner our customers on innovation projects. The Asia Pacific Innovation Centre is also home to DHL Applied Analytics, focusing on advanced data analytics solutions for our customers’ supply chains. We also contribute to the global innovation agenda in the
Justin Baird, Head of Asia Pacific Innovation Centre, DHL Customer Solutions and Innovation. areas of trend research and focus topics, by providing a perspective from the Asia Pacific Region, which tends to be culturally complex, diverse and fast changing. The other innovation centres based out of Troisdorf, Germany and Chicago, US have the same approach, focusing on customer innovation within their regions. Our Centre of Expertise for IoT (internet of things) is led out of Germany. Q: You were involved in the launch of Google’s first Android devices in APAC amongst many other projects, what experience and expertise are you bringing to DHL? A: I have over twenty years of management and high-tech experience, in areas ranging from research and development engineering, analog and digital engineering, embedded systems development, hardware and software product management, high speed digital networks, mobile and web application deployment, and agile team management. Throughout my career I have focused on driving innovation, which I define as ‘change
MHD SUPPLY CHAIN that adds value’. Innovation is more than just having a good idea; it takes determination and a team effort to deliver that value. I look forward to helping support the AP Innovation Team in driving success for our clients and partners in the region.
Stay tuned for the next version of our Logistics Trend Radar, which will be published this September! Our flagship publication, the Trend Radar dives into key technological and societal trends and examines its impact on logistics in the near and far future.
Q: What’s next for the evolution of logistics? What innovative tools and solutions are being developed? A: Increasingly we are starting to see trends converge and build upon one another, particularly in the areas of IOT and Analytics. An example of how these manifests is with Digital Twins, which refers to the digital replica of a physical asset that is connected through the IoT. Logistics companies will be able to detect and respond to activities occurring in the physical world that are immediately reflected in the virtual representation.With the amount of data captured by IOT devices we can build digital models of such accuracy that we can mirror live supply chains and simulate different outcomes and impacts of intended changes, whether on the process level or even changes in the business environment. Even without IOT devices, logistics is a highly Data Rich environment, especially against the backdrop of strong digitalization initiatives across the group. This presents opportunities for the application of data science. We set up DHL Applied Analytics, a Data Science Lab within the Asia Pacific Innovation Centre. Our data scientists employ advanced data science techniques to the supply chain, coming up with solutions such as predictive analytics, where we can spot delays or potential issues earlier and proactively avoid them.
Q: What initiatives and actions will you take to lead the APAC Innovation Centre following the COVID-19 pandemic? A: One priority is really to further the conversations with our customers and help them transition to the post-COVID reality. We completed our refresh of the innovation centre and are excited to welcome our customers back for a visit once the COVID-19 situation stabilizes. In the meantime, we continue engaging with our customers virtually. Looking ahead, we are re-defining our service offerings with a mix of virtual and physical engagements where possible to still bring the best Innovation Centre experiences to our customers and stakeholders based in the Asia Pacific Region. That being said, the safety of the team and our customers is of utmost importance. When we do eventually re-open, a set of health and safety practices such as temperature taking, safe distancing, and the other elements of a COVID-world that we have all eventually gotten used to will be in place at the centre. Q: Can you provide insight into DHL innovation during current supply chain challenges? A: The COVID pandemic brought two dimensions of innovation into play. First was the application of innovation to, in effect, comply with the many
safety measures implemented by governments world-wide. We saw the adoption of cleaning and sanitization robots for example, and also wearable IOT devices that helped social distancing by beeping whenever two people are too close to each other. Beyond that, our conversations with customers are centred on the topic of resilience. Understandably, the first priority during the outbreak was immediate people safety and business survival, but the lessons learnt during the pandemic will shape their supply chain strategy for years to come. How do you balance the investment in innovation and future proofing with your immediate needs? Innovation will be key in enabling our customers to navigate the new normal. Q: What do you think the future looks like for innovation in the APAC region? A: The APAC region is so diverse, which means different solutions will be valuable to different countries and companies in different ways. This presents a unique challenge and opportunity for our team at APIC. For example, robotics and automation are focus topics in countries like Australia and Japan where the cost of labour is high. That is not to say that robots will take over people in those country operations but rather, we see it as a way to complement our existing workforce as we deal with the shortage of labour. Contrasting this against other countries where labour is abundant or costs are lower, efficiencies can be driven with novel application of Advanced Analytics and data science. To this end, we are always striving to bring the right ideas to the right market at the right time and will endeavour to do so into the future. ■
MHD AUGUST 2020 | 37
MHD MATERIALS HANDLING
TOYOTA FORKLIFTS TURNING FOODWASTE INTO PROFITS FOR SYDNEY MARKETS A fleet of Toyota forklifts is at the heart of a thriving waste-recycling centre at Sydney Markets. MHD finds out more.
S
ydney Markets’ Flemington, New South Wales, operation started its Green Point waste-recycling facility in 2005 and has since built-up its waste-management capacity and, commensurately, its Toyota forklift fleet. Sydney Markets veteran of twentytwo years and Green Point Facility Environment Manager, Con Kapellos, says that since the recycling centre’s inception, a dramatic reduction in landfill waste has been achieved. “Back then we were only recycling about 17 percent of our waste. Most of it was going to landfill,” he says. “There wasn’t much impetus to recycle, then. But we changed our strategy to focus on our main wastestream, which is organic food and get it out of landfill. Then we looked at packaging such as cardboard, timber pallets, plastics and polystyrene.” “We are up to about 70 per cent recycling at the moment and we continually strive to improve. If we continued what we were doing before we started in 2005, it would have cost our business $35 million in waste going into landfill. So that’s how economically important our recycling system is. “We also are very proactive with managing our waste streams. For example, we process polystyrene boxes on site and sell them into Korea as solid bulk material which they make interior building products out of, such as cupboards and architraves, etc,” 38 | MHD AUGUST 2020
Green Point’s efforts to reduce landfill at Sydney’s markets has been recognised by multiple awards. Con says. Sydney Markets Stakeholders and Green Point donates approximately 1,500 tonnes of fruit and vegetables to Foodbank, every year. “We request that the market’s tenants give us their food waste already separated and we examine it to decide if it’s clean and fit for human consumption. If so, we give it to Foodbank who pass it on to the needy which is a win-win situation for all,” Con says. “Also, some of our organic waste goes freely to farmers for stock-feed, and we’ve been doing that since day one. The balance of the organic waste is sent to Earthpower, which is an anaerobic digestion facility located at Rosehill, who convert green waste to energy and a fertiliser product.” Toyota forklifts form the majority of material handling equipment at Sydney Markets, Flemington. “About 70 to 80 percent of the forklifts on our site are Toyotas which we source from Toyota Material Handling Australia,” Con says. With such an enormous amount of Sydney Markets tenant’s forklifts working every day on-site, safety is a paramount concern. “You’re working
in a place with about 1000 forklifts and the biggest risk is the forklift’s safety. Of course, we fear any injuries or, worse, fatalities. “Toyota’s System of Active Stability (SAS) system is very good for stability and it minimises risk factors such as tipping for our operators. So, Toyota’s SAS feature is extremely important and it’s a big reason that we buy their forklifts. “We at the markets are the landlord, so safety is absolutely important on-site. We strive to set the best examples for our tenants by leading the way with best safety practices. “We have to make sure we operate our forklifts in the safest way and we do that by showing our tenants that we’re driving Toyotas with stability control. “We’re also going to install speedlimiters that are linked to a GPS on our latest Toyota Forklift, which when programmed will automatically slow the forklifts to 10 kilometres within certain areas on site. We already have been trialling the speed limiter on another of Toyota Forklifts for the past two years and found it to be very beneficial,” Con says.
MHD MATERIALS HANDLING
Con Kapellos, Environment Manager at Green Point. Toyota Material Handling Australia (TMHA) Area Sales Manager, Michael Tsougranis, explains that Toyota’s exclusive SAS is the first system in the world to monitor and control forklifts through a combination of advanced sensors linked to an on-board controller, enabling assured load-handling performance and, therefore, safety: “SAS is an absolute cornerstone of the Toyota Advantage,” he says. “SAS is vehicle stability control systems in that it significantly contributes to accident-prevention by detecting motion during operation. The SAS computer constantly analyses the potential for a tip-over. If the SAS detects tip-over potential, it sends a signal to the Active Control Rear Stabiliser, which then minimise tip-over potential. “The SAS safety measures are based on the fact that the stability of a forklift changes constantly due to shifts in the balance of the load, coupled with the speed and turning-rate of the forklift.” Con says Green Point has been constantly expanding and improving its system of work, and its Toyota forklifts have been central to its operations, since its opening. “We used Toyota forklifts from the beginning and have only ever used their forklifts. We borrowed our first one back in 2005 and the resulting figures spoke for themselves. “We realised we needed to grow. We need forklifts that are efficient, productive and safe, so we expanded our fleet and currently have six Toyotas. They are real workhorses for us, so we have never used any other brands. “They are reliable even though they are worked hard. We move many tonnes of waste, seven days a week. They are probably the hardest working forklifts on site at the markets. They are very efficient forklifts and they don’t let us down. “Some of our forklifts are five or six years old and they are still on-deck, so they have proven to be very durable. We don’t have any issues with them. You might get the occasional hydraulic hose that busts but that’s just because of the high workloads we have for them. That’s nothing major. We’re very happy with them.” Green Point continues to innovate in order to improve its material handling procedures: “We have made some variations for our business over the years to assist with our operations. Some of the Toyota forklifts have rotating attachments which are powered by the forklifts. The attachments clamp onto a cardboard bin and flip it over 180 degrees and drop organic waste into a larger bin without losing the cardboard container. “The method we were using previously wasn’t very effective, so that modification has been very efficient. It has boosted our recycling capacity and reduced our required manpower. “Beforehand, if you wanted to empty a bin out, you had to do
it manually with a shovel and it would take about 15 minutes. But now with the rotator, the forklifts can do it in seconds. So, it saves a lot of time and money and it also allows us to re-use cardboard bins that are retained on the rotator after being emptied. We might get to re-use a new cardboard bin another 10 times so that’s really good. “We also have one of our Toyota forklifts that has adjustable tynes that can go wider or contract, depending on the size of the pallet,” Con says. Con personally appreciates his fleet’s forklifts. “I operate the Toyota forklifts myself and I enjoy the new machines, which continually become more efficient, comfortable and safe. My team enjoy them, too, because they get more functional and stronger. You can drive them hard, every day. We’ll be will be sticking with Toyotas for as long as I’m here at Green Point.” Green Point’s efforts to reduce landfill at the markets have been recognised by multiple awards. Sydney Markets is an active member of the Sustainability Advantage Programme run by the NSW Government. Sydney Markets has also been recognised by the New South Wales Office of Environment as a Silver member. Recently, Sydney Markets won a Green Globe Award which is New South Wales’ most prestigious award for sustainability. Sydney Markets has won United Nations Awards for Recycling, Blue Star Award from local Council and several International Awards for “Best Sustainability Practices”. ■ For more information free call 1800 425 438 or visit www.toyotamaterialhandling.com.au/
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MHD AUGUST 2020 | 39
MHD PROPERTY
A RARE OPPORTUNITY TO JOIN SYDNEY’S GLOBAL HUB FOR LOGISTICS With direct access to Sydney, the new site is ideal for blue chip logistics providers.
Whether its access to quality labour, reduced transport costs, full omnichannel capabilities, sustainability goals or a need to be closer to residential and commercial districts, a new warehouse development in South Western Sydney has it all covered.
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he industrial retail landscape is changing dramatically, and logistics and warehouse capabilities are playing an ever-more crucial role in overall operations. With online shopping continuing to boom, having the ability to be closer to the consumer is a major priority for logistics providers and retailers as they seek to gain significant efficiency and cost savings. As transport continues to be the largest cost to a logistics provider, demand for 40 | MHD AUGUST 2020
industrial property in Australia’s greater metropolitan areas is at an all-time high. There is more pressure than ever on logistics providers and retailers to offer faster delivery times to their growing online consumer base and this dramatic change in consumer behaviour is developing a trend towards seeking warehouse space closer to the major commercial and residential hubs. With the last mile causing logistics and retail companies with their most challenging pain point, strategically
locating warehouse space can offer solutions to some of these issues. A new development in South Western Sydney is set to provide a rare opportunity for organisations looking to expand or relocate their warehousing operations closer to Sydney’s CBD. Located at Bankstown Airport, Altitude is a centrally located logistics hub comprising of 162,000 sqm of warehouse space across 40 hectares. Construction on the site started in early April 2020, and the first
MHD PROPERTY tenant are on track to move in at the beginning of Q1 2021. Kirby, one of the largest refrigeration and air-conditioning equipment OEM and HVAC&R wholesalers in Australia, is the first tenant to sign up to the facility. “Kirby has committed to a 10-year lease across 22,000 square metres, this includes 1,400 sqm of office space and will be used as Kirby and Beijer Ref’s Australian headquarters,” says Joseph Ajaka, Project Director at Altis Property Partners, the development manager to Sydney Metro Airports.
GETTING CLOSER TO THE CONSUMER Forty-five per cent of Sydney’s population is within a 30-minute drive of this new premier industrial precinct. “On completion, Altitude will be the most centrally located warehouse development of this scale in Sydney with direct access to the M5 motorway,” Joseph says. The site offers access to major arterial roads, linking the site to all major hubs across the Eastern Seaboard. Additionally, Bankstown Airport provides tenants the unique benefit of direct airside access. The site is also located close to the Moorebank Intermodal terminal, which Joseph sees as complementary to what Altitude has to offer. “Whether you need to move any goods by freight, air or rail or just need to get closer to residence and labour pools of Sydney, Altitude has it all.”
A WAREHOUSE FIT FOR THE FUTURE According to Sydney Metro Airports CEO Daniel Jarosch, the Altitude Precinct at the southern gateway to Bankstown Airport has been designed for the logistics and warehousing requirements of today and will service those well into the future. “We’ve seen a huge trend towards the hub and spoke model, and we think this is one of the few facilities in Sydney that can offer this,” he says. A hub and spoke model is a decentralised distribution system, where goods are processed and then shipped to smaller stores or pick up spots, or directly to the customers. Many major retailers are exploring these kinds of solutions as they adapt
Altitude will be home to Kirby’s Australian headquarters. their model and explore opportunities to increase capabilities around e-commerce and servicing the online customer. “With online shopping penetration continuing to grow, this kind of model will be crucial as businesses adapt to a sustainable and efficient way of offering short delivery times,” Daniel says. The Altitude precinct is also unique in that it will be home to an amenity hub, with supermarkets, cafes, food outlets and accommodation. “This site not only benefits from schools, supermarkets and major public transport access within 5 kilometres, we have also allocated 10,000 sqm for a mixed-use amenity-based development, which will service both the workforce based at the site and the local community.” Additionally, Daniel is proud to report that the site will provide the local community with more than 2,000 jobs both during construction and on completion of the facilities. With the increase of more convenient delivery options like click and collect, the warehouse of the future is set to feature a customer-facing element, with access points for consumers to collect and even browse goods. The Altitude precinct offers those customers an attractive destination, as well as a destination for the local community and workforce. As the site features flexible zoning, it lends itself very well to the warehouse showroom style property that, according to Joseph, we are sure to see more of in the coming years. This also makes the facility a smart option for organisations who are looking to consolidate their office and warehouse operations, which is what Kirby has decided to do with its new property at the site. “We are seeing a big push towards organisations combining their head office with warehouse operations. Altitude allows our users to locate their head office onsite and we have ensured that the offices are designed to meet the
highest corporate standards. There is plenty of local amenity options, so we know this will be an attractive place to work,” Daniel says. Being so close to a highly populated area of Sydney also provides access to a large labour pool. For Daniel, this is an added benefit for the employees who will work at the site. “We are located very close to a large portion of Sydney’s labour pool, so this saves employees having to travel into the CBD or to the outer ring of Western Sydney.”
ROOM TO GROW Construction is currently taking place at this new site, and the first tenant will move in at the beginning of Q1. After that, the next available building will be from Q3 2021. Altis Property Partners is discussing opportunities with multiple tenants across the entire space and will consider tenants who are looking for upwards of 10,000 sqm. Ideal for blue chip logistics companies, TM Insight’s Supply Chain research found that the site offers transport savings of up to 30 per cent. “These calculations are based around the fact that we are right in the centre of Sydney, usually sites of this size and calibre are more than 50km out of the city. The reduction in transport and toll costs can offer our tenants significant savings,” Joseph says. A major priority for Sydney Metro Airports and Altis Property Partners was to make sure the site met environmental, social and governance goals. The first building will be a certified 5-star green star building, which includes 250-kilowatt solar panel installation, and a 50,000-litre rainwater harvesting system. Altis Property Partners has recently completed a similar A-grade logistics and warehouse hub at First Estate in Western Sydney’s Erskine Park. ■ For more information, visit: www.altitudeindustrial.com.au MHD AUGUST 2020 | 41
MHD SUPPLY CHAIN
DISRUPTION WITH A DIFFERENCE Cohesio Group’s journey commenced just over six years ago. As the tech solutions provider gets ready to call Körber Supply Chain home, MHD talks to CEO Nishan Wijemanne about challenging the norm, anticipating trends and why every successful business venture should be a mutual alignment of vision, culture and values.
N
ishan Wijemanne’s epiphany came in 2013. “The industry needed change and an influx of innovation,” he says. With a gap in the market for flexible solutions, to be truly on the cusp of technological innovation it is fundamental to pursue a growth strategy. “Some of the larger players in this field were just concerned with retaining their major clients, without pursuing any kind of growth or innovation strategy. The tech on the market was only available to large enterprise customers. Even then, the process was long, costly and difficult to integrate,” Nishan Wijemanne, CEO at Cohesio Group says. Nishan’s curiosity and drive for innovative solutions has led him and his core founding team to develop one of the most successful start-ups to come out of the Australian and New Zealand technology sector. Starting as an idea scribbled on a napkin over lunch, fast-forward six years, and Cohesio Group now boasts a world-class portfolio of Australia and Asia Pacific’s largest retailers and logistics providers. Rapid growth and a prominent market position in voice and Android Voice technology and Autonomous Mobile Robots (AMRs) for supply chain and retail led Cohesio to be acquired in 2019 by global logistics giant Körber.
ADVANCED TECHNOLOGY SOLUTIONS FOR THE MASSES In 2014, the logistics and supply chain industry were ripe for disruption. With the technology available largely unaffordable to the masses, and a high level of inconvenience through lengthy and costly implementation 42 | MHD AUGUST 2020
Cohesio’s people are the face of its success. processes, technology options to power the mainstream were rare. “There was not enough innovation happening in the market. Opportunities to push the boundaries and really make a difference in supply chain capabilities were passing people by,” Nishan says. Traditionally the mindset in the supply chain has been that any tech solutions introduced in the distribution centre would be different to those instore. But as e-commerce takes up a larger share of the retail spend, the boundaries between retail and logistics are blurring. For Nishan, this presented the ideal opportunity for a new era of supply chain operations. “We were the first to think of retail and supply chain as one. When you challenge the traditional way of thinking you can create a better alignment between the processes and a better connection between the DC and front-of-store or e-commerce fulfilment teams. In fact they are woven into the same fabric. This
approach creates more visibility and tremendous value,” he says. With many retailers now exploring ways to gain efficiencies from thinking of their entire operation as one, Cohesio was ahead of the trend. Chemist Warehouse’s recent same day Click and Deliver offering, powered by Cohesio’s awardwinning ignito software solution is a good example of this approach. The leading pharmacy retailer now picks online orders at the store most local to the consumer. This has enabled Chemist Warehouse to accelerate its pick, pack and collect turnaround time for an essential service during COVID-19. This approach can also be seen with the latest deployment of Android Voice solutions for Kmart. The first project of its kind in Australia, Cohesio has worked with Kmart to establish a holistic solution that will help the retailer fulfil its online and instore orders in record time. For Oliver Blombery, General Manager – Supply Chain at Kmart this kind of
MHD SUPPLY CHAIN tech is set to transform the retailers e-commerce capabilities. He says by working with Cohesio’s inhouse software development team, Kmart has been able to gain a much greater ROI of its equipment spend as well as cope with a record rise in online orders. Furthermore, fashion retailer Cotton On Group relies on Cohesio for its click and collect offering. Travis Robertson, Global Logistics Manager at the retailer says right from the outset Cohesio Group understood what they were trying to achieve. “By developing a click and collect solution, we were able to take its retail operations to the next level of digital success and customer experience,” he says.
POWERING AUSTRALIA’S LARGEST RETAILERS From day one, Cohesio made its commitment to continuous improvement and innovation. Sourcing the brightest individuals from across Australia and New Zealand’s tech talent pool, the inhouse team works tirelessly to develop solutions for its array of customers. “We have a pool of investment funds that are applied to developing and trialling new technology, and a team who thrive on innovation and learning new skills,” Nishan says. Pioneering the launch of goodsto-person AMR solutions is another example of a team mindset that is ripe for innovation. Cohesio now boasts four world-class AMR solutions for logistics and retail operations including microfulfilment centres. This is evident in Cohesio’s long term business partnerships with some of the region’s biggest brands including Wesfarmers, Cotton On Group, Chemist Warehouse, CEVA Logistics and Toll. Along with rapid expansion across the APAC region with customers throughout South East Asia.
deal with major uplifts in online sales,” Nishan says. This commitment to people is also integral to the way that Cohesio approaches its suppliers and customers. “Before we approach any project, we make sure there is a cultural alignment between us and the customer. This approach has been integral to our success and is the guiding principle behind what we do,” Nishan says. Rizan Mawzoon, Head of Transformation at Cohesio Group says it’s a level playing field when it comes to customers. “When our customers work with us there are no boundaries or layers that need to be broken down. Our attitude is one of collaboration and partnership and we do whatever it takes to move projects and solutions forward,” he says. Transparency and accountability are high on the priority list for Cohesio, and creating meaningful partnerships and relationships are the most crucial aspect of any project. This attitude enables the team to approach each project case by case, and if necessary, walk away from opportunities. “If a customer doesn’t have the same vision as us, or we are not aligned culturally, it’s mutually beneficial for both parties to part ways. We work so closely with our customers, we become an extension of their business, so it simply will not work if there is a misalignment from the get-go,” Nishan says. That being said, since its inception, Cohesio has not lost one single customer and has now formed strong relationships across some of Australia’s largest blue-chip companies, demonstrating that a partnership approach based on trust and collaboration is mutually beneficial for all parties.
Sophie Greenwood, Cohesio Group.
BEING BOLD PAYS OFF What started off as a goal to disrupt the tech market and push the industry forward, has in six years turned out to be a rollercoaster ride for Nishan and the team. But for Nishan, this is just the beginning. “We’ve only just scratched the surface of what can be achieved. Australia has a long way to go in terms of adopting technology. It’s the start of a new era for supply chain and retail, but we still have a long way to go in terms of educating and encouraging businesses to adopt new technologies. While it’s been a great journey so far, I’m excited to see what’s next,” he says. Looking forward, Cohesio has an exciting future as it proceeds with a global rebrand and integrates into Körber Supply Chain. With a global reach and a network of entrepreneurial solutions providers, Cohesio is well-placed to reach new heights and conquer uncharted territories now and well into the future. ■
PEOPLE ABOVE PROCESSES AND PROFITS At the heart of Cohesio is a commitment to people and partnerships. Nishan has built a team inhouse who exercise total dedication to their clients and customers. “Our people are the face of success. During COVID-19 everyone has risen to the challenge of continuing to service our customers. Many of our clients have entrusted us with huge transformations as the world of retail has had to pivot to
Cohesio now boasts four world-class AMR solutions.
MHD AUGUST 2020 | 43
MHD E-COMMERCE
THE BACKBONE OF E-COMMERCE FULFILMENT As the world’s consumers move online, packaging adaptability is more crucial than ever. Common challenges around excess void fill, increasing shipping costs and rising consumer expectations are addressed with ABBE Corrugated’s latest automation packaging solution.
A
s COVID-19 has accelerated the shift to online shopping, many retailers are faced with the ongoing challenge of ensuring their operations run as efficiently, sustainably and productively as possible. With the general trend of consumers ordering less items but more frequently, it is a shared pain point for many retailers to get their orders out the warehouse door fast enough. Retail is a highly competitive environment, and e-commerce capabilities are set to be the key differentiator for retailers to thrive or fail over the next few years. One area where retailers and logistics operations can reap significant efficiency and productivity gains is in the automation of secondary packaging. MHD catches up with Russell Speechley, Packaging Automation Manager at ABBE Corrugated to learn more about a new automated packaging solution that is providing some of Australia’s largest online retailers with major efficiency gains.
AUTOMATED PACKAGING SOLUTIONS ABBE Corrugated provides packaging solutions for all market segments, a leading manufacturer and supplier of packaging that includes corrugated cardboard boxes, cartons and Fanfold. The business is also the Australia and New Zealand partner for CMC Machinery, an Italian packaging machinery supplier. ABBE is able to tailor solutions that meet the 44 | MHD AUGUST 2020
customer’s requirements with outright purchase and rental options where Abbe Supplies the fanfold consumable from its local manufacturing facility. ABBE has already had major success in Australia with the CMC Cartonwrap product, and boasts Catch Group, Toll, Cotton On among others as its customers. The CMC Cartonwrap has revolutionised packaging for retail consumers. Launched in 2013, the solution is the first 3D packaging machine in the market. Each box is created unique to the product that it is shipping. Resulting in an elimination of void fill, lower operational costs and a reduction of up to 50 per cent volume of corrugate. The end packaging is robust and strong, easy to open and can be personalised depending on the brand or purpose. It also has the added benefit of being utilised for returns, an area that retailers are seeing a significant increase in. “The growth of e-commerce has required the need to move to more automated solutions in packaging to achieve fulfilment operation demands. Speed to market is absolutely critical in this space, and by automating the packaging process retailers can ship goods at a much faster pace,” Russell says. Catch Group, one of Australia’s largest online retailers, was an early adopter of the CMC Cartonwrap product and according to Russell, is a great example of proving the case for such a solution. “Catch fulfils thousands of orders a
day and can offer impressive delivery timeframes, the Cartonwrap plays a huge role in them being able to deliver on their customer promise,” he says. Many retailers and logistics providers are seeking opportunities to capitalise on the current shift to online, and the key to retaining these customers is good service. “At the moment it’s very much about adapting to this demand and making sure that you can deliver,” Russell says. The CartonWrap can operate at a speed to 1,000 orders an hour. Very few e-commence businesses can feed the machine at these levels and according to Russell, these fulfilment rates would be near impossible with a manual process.
A NEW ERA FOR AUTOMATION With the success of CMC’s Cartonwrap solution, the company has taken the automation one step further with the launch of a next generation automated packaging offering. After many years of research and development, the CMC Genesys was launched in May this year and finally provided the solution to the problematic issue of multi and odd shaped orders. “The new CMC Genesys is a pick to tote solution and is designed to meet both the needs of the demand for sustainable and recyclable packaging and to optimise the production processes and significantly reduce labour and shipping costs,” Russell says. The Genesys goes one step further by utilising it’s unique VaryTote® it has developed to eliminate pre-
MHD E-COMMERCE CMC has taken automation one step further with the launch of a next generation automated packaging offering.
consolidation. It fully automates the packaging process of multi-orders by robotically transporting the order from the tote to a perfectly sized box without the requirement for void fill. The VaryTote® has adjustable inner guides that are used to optimise the packing volume of the items, and their adjustment will determine the dimensions of each box. Each box is manufactured in line with the machine once the measurement has been 3D scanned. This allows the VaryTote’s contents to be automatically placed into a uniquely sized corrugated carton, then labelled with the shipping details. Ready to be delivered. Furthermore, Genesys uses a new innovative laser to cut and crease the exact box templates. “There is no waste and all excess trim is folded into the four sides of the box to create a barrier to contain multiple items and remove the need for void fill,” Russell says. Eliminating the need for preconsolidation offers even further efficiency and productivity gains. There is no need to strap or wrap multi-item orders and the final product enhances the customer experience with an easy tear strip, thumb hole and reusable box for returns.
in both production output that also reduces costs. With less waste, less cardboard and less filler material, it allows retailers to offer more sustainable packaging options. There is also the added benefit of reduced delivery fees because of less trucks on the roads. “You’re no longer paying to ship air, a major sustainable and economic benefit,” Russell says. We are reducing the cubic area that is shipped. A recent Nielsen study found that 75 per cent of millennials are altering their buying habits depending on sustainability practices. This can already be seen with major retailers
including David Jones and Myer now offering consumers choices around sustainable packaging for online orders, this is predicted to be an important factor in the future of online retail. “With our automated solutions, we can offer greater packaging and operational efficiencies though labour savings and void reduction eliminating wasteful filler materials as the box is built to size. Overall, this leading automation solution is a winning outcome for manufacturers, the consumer and the environment” Russell concludes. ■
Daniel O’Sullivan, Sales Director at ABBE Corrugated (right) and Saar Davidi, Distribution Centre Manager at Catch Group.
SUSTAINABILITY AT THE FOREFRONT With many retailers wanting to move away from plastic packaging to meet their sustainability aspirations, ABBE’s automated packaging solutions offers impressive improvements MHD AUGUST 2020 | 45
MHD WAREHOUSING
FLOOR CLEANING PROCESSES AND PLANNING – A HOLISTIC VIEW The spread of COVID-19 has put a new spotlight on the importance of maintaining clean, healthy environments. MHD finds out more about the fundamental differences of cleaning, sanitising and disinfecting.
T
he COVID-19 pandemic crisis has caused some confusion with nomenclature. COVID-19 is the pandemic disease that is caused by the SARS-CoV-2 virus. COVID-19 is the abbreviation for coronavirus disease 2019. SARS-CoV2 is the abbreviation for Severe acute respiratory syndrome coronavirus 2. The EPA has published a list of disinfectants only, not sanitisers, that can be used to control the SARSCoV-2 virus on hard non-porous environmental surfaces.
KNOW THE DIFFERENCE: CLEAN, SANITISE AND DISINFECT The spread of COVID-19 has put a new spotlight on the importance of maintaining clean, healthy environments. The best practices for doing this are well established. Cleaning is the fundamental first step in this process. It cannot be skipped, and it must be well-executed to get the results. Additional steps of either sanitising or disinfecting can take place after cleaning has been accomplished. In most cases, sanitising is done where there is low risk of contamination from bloodborne pathogens or bodily fluids and generally refers to lessening or reducing the presence of bacteria or viruses. Often times, cleaning, sanitising and disinfecting are used interchangeably as these words have different meanings in different parts of the world. It’s important to know the 46 | MHD AUGUST 2020
difference to plan, communicate and execute processes correctly and to accomplish desired results.
Traditional chemicals or device disinfectants are used on hard non-porous surfaces.
CLEANING Cleaning is the physical removal of soil, debris, residues and organic substances from the surface. On a hardnon-porous floor, this process is best performed with a walk-behind, ride-on or robotic auto-scrubber that applies fresh cleaning solution and provides agitation and vacuum recovery as it removes contaminants from the floor. This process doesn’t kill germs, but it helps remove soil and other physical contaminants on the surface. sanitisers and disinfectants perform better when soil has been removed from the surface before.
AUTO-SCRUBBERS: IDEAL FOR CLEANING, NOT SANITISING OR DISINFECTING
SANITISING A sanitiser is “a substance, or mixture of substances, that reduces the bacterial population in the inanimate (hard surfaces) environment by significant numbers, but does not destroy or eliminate all bacteria”.1 Non-Food Contact Sanitisers are used on surfaces, such as floors, that do not contact food. These types of sanitisers “demonstrate a reduction of ≥99.9% in the number of specific microorganisms within 5 minutes”.2 DISINFECTING A disinfectant is “a substance, or mixture of substances that destroys or irreversibly inactivates bacteria, fungi and viruses, but not necessarily bacterial spores, in the inanimate environment.
Auto-scrubbers offer an ultra-efficient solution for the first “cleaning” portion of the disinfection process. They often are used incorrectly in the disinfecting process, though. Sanitisers and disinfectants require specific contact times to work effectively. Surfaces must remain wet for a range of 2-10 minutes. Auto-scrubbers are designed to dispense cleaning solutions and vacuum them from the floor in just a few seconds. While this amount of time is ideal for protecting against slip and falls, it does not provide the contact time required for disinfecting. Thus, if a disinfectant is put into the machine and used conventionally, the floor is being cleaned but not disinfected. In order to disinfect with an autoscrubber, operators can use the double scrubbing technique to ensure that floors remain wet for the proper allotted time. To accomplish this, the operator simply leaves the squeegee in the up position and turns off the vacuum during the first scrubbing pass or removes the squeegee. This prevents immediate recovery of the disinfection solution while it sits on the surface. After the contact time has been met, the operator can then lower the squeegee and turn on the vacuum to recover solution and soils if not allowed to air dry. Double-scrubbing is an easy technique
MHD WAREHOUSING to use, but does come with a few extra precautions. Machine safety and care are critical, so make sure all of the nonporous surfaces of the machine are 5 thoroughly cleaned after use. After cleaning, allow enough time for the machine surfaces to fully air dry and store auto-scrubbers in a dry area with squeegee, scrub head and sweep head in the up position.
EXPLORE AN ALTERNATIVE TO DETERGENTS AND OTHER CHEMICALS Tennant Company offer cost-effective and environmentally responsible alternatives, ec-H2O NanoClean® and ec-H2O™. These technologies electrically convert water into an effective cleaning solution that saves money, improves safety and reduces environmental impact* compared to traditional cleaning chemicals and methods. CLEAN EFFECTIVELY Scrubbing with ec-H2O NanoClean® and ec-H2O™ effectively removes soil without leaving chemical residues based on third-party and customer testing. SAVE MONEY Reduce costs and improve productivity by eliminating purchasing, storage, handling and chemical mixing tasks. With cleaning requirements increasing dramatically, eliminate additional daily floor detergent costs. Get additional productivity gains by reducing the amount of dump and fill cycles with a reduced solution flow rate. ENHANCE SAFETY As staff are asked to be exposed to more and more chemicals while combating SARS-CoV-2, use this technology to reduce chemical exposure in normal cleaning operations. Reduce exposure to chemical fragrances with fragrance-free ec-H2O NanoClean® and ec-H2O™. Confidently clean with technology registered with the NSF for cleaning in food and beverage environments and certified by the National Floor Safety Institute as not impacting floor friction. Reduce environmental impact Auto-scrubbers equipped with these technologies use less water so they can scrub up to three times longer between non-productive dump and fill cycles. Also, according to a third-party study
by EcoForm*, ec-H2O NanoClean® and ec-H2O™ significantly impact green cleaning operations in seven key categories: energy, CO2 emissions, ozone, smog, acid, eutrophication, and particulates. DISINFECTING FLOORS Ordinarily, facilities like shopping malls, factories and office buildings can maintain clean and healthy environments by regularly cleaning their floors. Floors have been typically referred to as noncritical surfaces that don’t commonly come in direct contact with human skin. The spread of COVID19 creates a unique situation, however. Because the SARS-CoV-2 virus is highly contagious and because it appears to live on hard surfaces for several days, many organisations are taking or asking that the extra step of disinfecting their floors to be completed as more studies are provided regarding the spread of pathogens. Others include this in their protocols based on existing health code or industry standards. If this is a new step in SOP, review why this task is being asked. Is this a quick response to try and disinfect all surfaces? Is there an increased concern of COVID-19 in the facility? Do I have the ability to procure enough disinfectant to complete disinfection on floors vs the smaller project tasks? When is there an available time when I can shut down the area where disinfectant can sit on the floor for the required amount of time? Additional floor cleaning frequency using an auto-scrubber is often a more viable option for facilities looking for an increase in hygiene that don’t have a specific reason to disinfect the floor. BEST PRACTICE FOR DISINFECTING If implementing a new protocol, due to the current SARS-CoV-2 contamination concerns, disinfection with an EPA SARSCoV-2 listed disinfectant, where possible, is best practice. Review contact time on list for proper time required for SARSCoV-2. Make sure the products being used offer the appropriate efficacy outcomes desired. Plan to immediately restrict traffic from disinfected areas using prominent safety signs and take other precautionary safety measures. Apply disinfectant according to label dilution instructions. Use a procedure
that allows the floor surface to remain wet for the required contact time. Disinfectants are often dispensed through dilution systems. Make sure the dispensing system is properly diluting, per label instructions. Check end concentration frequently. DBEST PRACTICE FOR CLEANING AND DISINFECTING AUTO-SCRUBBERS= Cleaning floors may result in contamination of Tennant autoscrubbers with the virus that causes COVID-19. Tennant recommends routine cleaning and disinfecting of equipment surfaces and parts.
Tennant recommends routine cleaning and disinfecting of equipment surfaces and parts. Before selecting a cleaner or disinfectant, review labels to determine if the chemistry is compatible with the auto-scrubber surfaces and parts. Some disinfectants, just like some cleaning products, can corrode metals, plastics and types of rubber. Thoroughly clean all hard, non-porous surfaces of the machine. After cleaning, allow time for surfaces to completely air dry prior to disinfection. Thoroughly apply the disinfectant by wiping or spraying and carefully follow contact time and PPE instructions. Wipe and rinse equipment with water to remove disinfectant residues from machine, paying specific attention to the scrub deck, squeegees and other areas prone to chemical corrosion in order to reduce the potential for damage to equipment. Take care not to spray electrical components of the machine. ■ MHD AUGUST 2020 | 47
MHD SUPPLY CHAIN
AN EXTRAORDINARY RESPONSE With the introduction of senior shopping hours, next day delivery, purchase limits, and the accelerated adoption curve of click-and-collect, no industry has had to pivot as much as the grocery retail sector. In the spirit of collaboration, Australia’s leading grocery retailers have been working together to adapt to the changing needs of their customers.
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n an unprecedented move, the Australian Competition and Consumer Commission (ACCC) granted Australia’s leading grocery retailers authorisation to collaborate and co-ordinate to improve supplies during the COVID-19 crisis. In March this year, as panic buying peaked across Australia’s supermarkets, shoppers were hoarding toilet roll, dry pantry goods and sanitiser. Tasked with ensuring supply met demand, the leading executives across Australia’s grocery retailers worked tirelessly to ensure Australians had access to essential food and goods. ACCC Chairman Rod Sims said due to unnecessary panic buying, grocery retailers were left with logistics challenges and underlying supply problems. “Australia’s supermarkets have experienced unprecedented demand for groceries in recent weeks, both in store and online, which has led to shortages of some products and disruption to delivery services,” he said in mid-March. “We believe allowing these businesses to work together to discuss further solutions is appropriate and necessary at this time.” Initially in place for six months, when Victoria started to find itself in the midst of a second wave of infection, panic buying continued and the ACCC has proposed for the authorisation to remain in place until March 2021. The authorisation allows supermarkets to coordinate with each other when working with manufacturers, suppliers and transport and logistics providers. 48 | MHD AUGUST 2020
There has been a huge uplift in consumer demand for groceries since the beginning of the pandemic.
The purpose is to ensure the fair and equitable distribution of fresh food, groceries and other household items to Australian consumers, including those who are vulnerable or live in rural and remote areas. The authorisation applies to Coles, Woolworth, Aldi and Metcash, however the ACCC notes that any other grocery retailer wishing to participate is free to do so. According to Dr Geoffrey Annison, Acting CEO of the Australian Food & Grocery Council (AFGC) authorisation of this kind is extremely rare, and in his experience, he has never seen a move like it. “The authorisation was to try to reduce the chances of shortages of
food and grocery products for different consumers in different places. This was a strategic response to the huge uplift in consumer demand that was being seen across Australia,” Geoffrey says.
THE TREND TO ONLINE The pandemic has caused both Coles and Woolworths to pivot their consumer offering to offer consumers greater choice, convenience and flexibility with regards to their weekly grocery shop. While this shift was well on the way for the likes of fashion, technology and cosmetics. The grocery segment has failed to keep pace with the rest of online retail, until now. Prior to COVID-19, Coles and
MHD SUPPLY CHAIN Woolworths had both revealed plans to improve their online capabilities and follow in the footsteps of their European counterparts who have been offering this kind of service for the last few years. Coles has tapped Ocado, an online grocery retailer in the UK, for strategy and direction and Woolworths is working with US-based automation provider Takeoff Technology to transform its e-commerce capabilities. “We’ve seen the supply chain utilise technology to feed its online capabilities. As international e-commerce giants like Amazon have started to penetrate the Australian market, this shift to online was already on the cards,” Geoffrey says. While it may have already been part of the strategy, COVID-19 has accelerated this into reality. With Coles and Woolworths now offering next day delivery and an ample click and collect service. They’ve had to pivot their operations almost overnight as people are more inclined to stay home and shop online. However, for Geoffrey this online offering is causing a major headache for retailers and their bottom line. “A consumer expects to pay the same price for an item whether they come in store to pick it up themselves, or whether it is delivered to their home. But with online delivery, the burden of the delivery, spending time browsing, and shopping, are now worn by the
retailer,” Geoffrey says. The already tight margin in grocery is proving even tighter as consumers expect low-cost home delivery. “At some stage the retailers will insist on making some money on home delivery, and I’m not too sure what that looks like,” Geoffrey says. However, Geoffrey is hopeful and says if any industry can cope with this challenge it’s the grocery industry. “Supermarkets have a history of innovation. They operate in short supply chains, with very sophisticated distribution centres. Now many of them are moving to highly automated operations as they look at ways to reduce costs,” Geoffrey says.
A RESILIENT SUPPLY CHAIN Part of the AFGC’s role during the COVID-19 panic buying period was to reassure the Australian public that there is more than enough food being processed across Australia. “Throughout the COVID-19 pandemic and still today, AFGC has continued working closely with food and grocery manufacturers and government to ensure minimal disruption to supply chains. In Australia, we are lucky because most of our food is grown and produced here. We produce enough food to feed 75 million people. That’s enough to feed the entire population three times over. We have a very safe, reliable and efficient food supply chain,” Geoffrey says.
He does admit that the panic buying did take the industry by surprise. “Pandemic planning has been part of the federal government’s activities since the SARS outbreak. One of the things we didn’t plan for was the way that panic buying would spread through social media. We didn’t anticipate the huge role that social media would play in spreading the panic buying message,” Geoffrey says. Looking to the future, Geoffrey says there are still challenges ahead. However, he is very impressed with the way the government and industry has handled the crisis. “There has been consistent messaging from the supply chain that there is no need to panic buy and that message has got through,” he says. Geoffrey also expresses his admiration for the level of collaboration he has seen across the industry. “Longterm I think we will see companies start to pay a bit more attention to the supply chain and perhaps not be so reliant on imports as well as look to diversify where they can,” he says. “There might be more concentration on local manufacturing of some key products and maybe a move to hold more stock.” On collaboration in the future, Geoffrey says he hopes to see some of the principles of the ACCC authorisation taken forward, so long as it is not one in a way that results in anti-competitive behaviour. ■
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MHD AUGUST 2020 | 49
MHD SUPPLY CHAIN
SUSTAINABILITY IN THE SUPPLY CHAIN: REDUCING OUR CARBON FOOTPRINT Raghav Sibal, Managing Director, ANZ, at Manhattan Associates offers his views on how we can move towards a greener future.
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n today’s age of extremely high consumption, the topic of sustainability in the supply chain is not a new one, and it’s becoming increasingly vital that more industries and supply chain enterprises consider the fundamental benefits of initiating sustainable practices to fight against climate change, not only for the environment, but for the entire supply and demand lifecycle. In retail, the rise of e-commerce has lifted the world of consumerism out of the grips of physicality, which has in turn created a large decrease in the carbon footprint of the consumer. However, the shift towards the globalisation of buying and receiving goods has created another sustainability issue entirely – the shipping, handling, and transportation of goods. But, is this uniquely the responsibility of the supplier, or should consumers also be leading this charge? The answer is both are responsible. And while the solution is not an easy fix, changing the way both consumers and the supply chain understand the impacts that their decisions can make towards sustainability is the best way to start.
E-COMMERCE AND THE CARBON FOOTPRINT OF TRANSPORTATION According to a study from MIT’s Centre for Logistics and Transportation, shoppers who complete their entire shopping journey online generate a 50 percent lower carbon footprint than traditional in-store buyers. However, while there is much research to suggest that e-commerce has had a significant impact on the reduction of carbon emissions, there is still a large environmental issue at hand around the transportation of online-ordered goods. As more consumers shop online, the 50 | MHD AUGUST 2020
“
Within the supply chain and the transport and logistics industry specifically, a transportation management system with machine learning built in can help helping to combat the issue of more sustainable delivery transportation practices.
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world of transport and logistics has never been more significant to the world’s impact on the environment. Global parcel shipments have grown substantially over the years, clocking at 44 billion in 2014 and forecast to reach over 200 billion by 2025. This has created the unyielding challenge of the resource capacity crunch, where there are simply not enough transportation methods to deliver all of these packages on time and to where they need to go. Another impact of expedited shipments is the inability to consolidate at the distribution centre. When we place a two-day order for five items and all five are not available in the same warehouse, the retailer must source those items from multiple places around the country, creating multiple packaging, distribution, and delivery events for a single order – resulting in a large carbon footprint. To fully explore the efficiencies of utilising transport equipment to minimise environmental impact,
As more consumers shop online, transport and logistics has never been more significant to the world’s impact on the environment.
MHD SUPPLY CHAIN
Inventory optimisation technology can help with sustainability commitments.
In today’s age of high consumption, sustainability is an important topic. we need to understand how the issue is communicated to the consumer, as they, more than you might think, hold the power to combat the rising challenge of this shipping and handling sustainability crisis.
CHANGING CONSUMER BEHAVIOUR There is a new entity that has exerted its influence to artificially break down the natural relationship between profitability and sustainability, and it’s the consumer. If consumers could see the impact that their decisions make on the environment, would it change the way they think and the choices they make around shopping? If consumers knew that selecting to receive an item in four days instead of one would result in a 70 percent reduction in carbon impact, they would probably be more likely to make that choice. We tend to choose the option that society smiles upon, rather than the ones that may personally benefit us. When you take all of this into account, it leads you to wonder, if retailers presented information during the checkout process underlining the impact of fulfilment choices towards the environment, would it yield a difference in how the individual consumer sees their role in preserving our planet and minimising the detrimental impacts we are having on it? What if, instead of receiving a rushed delivery of goods to their homes, consumers were given the option of picking it up at the entrance of their office complex, where hundreds of deliveries a day could be consolidated
– or if they made a conscious decision to not choose two-day delivery for some items, instead opting for a timeframe with less of an environmental impact? These informed decisions, made by the consumer, and presented by the retailer, could be the next step forward towards a cleaner, more sustainable future for e-commerce and the supply chain.
IMPLEMENTING SUSTAINABLE PRACTICE TO THE SUPPLY CHAIN In order to provide both continual improvements to operations and sustainable initiatives, supply chains need to become more unified, whilst also communicating enough insights for consumers to have what they need to make an educated decision around sustainable options. Aside from this relationship with the consumer, it is imperative that an action plan for sustainability is included and implemented within a supply chain’s business model. If a supply chain network is designed to make significant capital investments in warehouses and distribution centres, without factoring in its carbon footprint, it will evidently be restrained to that same network for many years unless willing to take a financial hit. If you do not design a product, for example, in a way that makes it easy and cost effective for someone to take it apart and recycle its materials, then it will likely end up in landfill. We have all received a giant box, only to find a small item enclosed within layers of bubble wrap and unnecessary packaging.
Not only does this waste packaging materials, but it takes up more space in the delivery vehicle, which means other items could not be delivered on the same delivery route. These executive decisions made within the supply chain contribute immensely to lessening the detriments made to the environment at the end of the line. Within the supply chain and the transport and logistics industry specifically, a transportation management system with machine learning built in can help helping to combat the issue of more sustainable delivery transportation practices. These systems are designed to load vehicles more efficiently, optimise routes to drive fewer miles, and model optimal consolidation and backhaul opportunities to reduce the number of vehicles travelling. Order management systems are another tool critical to helping minimise split shipments, by intelligently sourcing from all available inventory, including alternate store pickup locations that minimise travel distances. Lastly, inventory optimisation technology can help to ensure that supply is more accurately placed where the demand will be, to reduce the amount of store transfers, the need for unexpected replenishments or shipping from the furthest location from the delivery point. Of course, there is still a long way to go in terms of how the supply chain can implement new sustainable practices to minimise its impact on the environment. However, by utilising the strategies of raising consumer awareness around online shopping and shipping, as well as the integration of advanced supply chain technology systems, we can all begin to work our way towards a greener future. ■ MHD AUGUST 2020 | 51
MHD WOMEN IN INDUSTRY
LEARNING EVERYDAY MHD sits down with Amy Bentley, General Manager – Supply Chain Solutions at Toll Group to find out what she loves about her role, why people and safety are at the forefront and why she thinks supply chain is the work horse of any product business.
Q.
When did you first start working in supply chain or logistics? A. I commenced working in supply chain in 1997. I was extremely fortunate to
be experiencing. At the moment I am also doing some study with Harvard Business School and London Business School so am squeezing this in as well when I can.
secure a role as a HR Manager for a new Distribution Centre being commissioned by Woolworths in Victoria. This site had automation never seen before in Australia, so it was a brilliant opportunity to learn about logistics and also materials handling systems. My leader at the time required every member of the leadership team to be able to perform their peer’s roles so it was a steep learning curve but one which has provided perfect grounding for my career to date in supply chain.
Q. What has been the highlight of your career so far? A. So many. But if I had to choose one I would choose a business transformation I was involved with: • I worked with a large family-owned business in the industrials sector to build their supply chain strategy, develop a business case and then execute the transformation program. The organisation moved swiftly and with purpose which saw them centralise their supply chain for 23 of their 25 businesses, reduce their distribution centre operations from 32 to 5, implement a new WMS and expand their forecasting capability as well as improve their freight operations over the next four years. This took substantial costs out of the business and five years post commencement of the transformation program part of the business was acquired by a significantly larger US business. Last year they took full ownership. • I am really proud to have been part of creating value within an Australian family business, giving that family the opportunity to sell their business proudly and have the name continue and meeting amazing people who focused on achieving each goal and delivering incremental EBIT. Some of these people continue to be friends and mentors. I have to add that people and safety are two very important aspects of my leadership role. In my last role I ran a large logistics operation. When I
Q. How long have you been in your current role? A. I have been with Toll Group since May last year. My role as GM Supply Chain Solutions leverages a combination of my experience and expertise across logistics operations, distribution centre design, transport optimisation, supply chain network solutions, project delivery, supply chain consulting, business development and people leadership. The team I guide is responsible for delivering solutions and implementations for new and existing customers across multiple industry sectors. I learn a lot every day. Q. What does a standard day for you look like? A. At the moment lots of video calls. Typically, I have a day with a mixture of 1:1’s with my leadership team, engaging stakeholders to discuss customer solutions or business improvement initiatives, portfolio planning and navigating issues my team members may 52 | MHD AUGUST 2020
Amy Bentley, General Manager Supply Chain Solutions at Toll Group. started, a number of the leadership team conducted a safety roadshow to all sites where I personally engaged with every supervisor and manager. This was to establish early on my expectations on safety and their role in ensuring everyone, including themselves, goes home safe. This was one of many safety initiatives we undertook so by the end of the year I was really proud to see our first-year results on safety with a 38 per cent improvement in LTIFR and a four per cent improvement on TRIFR. Percentages are not the only key indicator of safety improvement though – evidence comes from the way people communicate about safety every day, what they do when something goes wrong and what people on the floor tell you when you do a site walk. Q. What do you like about working in the logistics or supply chain industry? A. Supply chain is the work horse of many product-based businesses. Our specialisation has so much variety and has transferrable skills across industries. We get exposure to working with a diverse group of people in supply chain, health and safety, customers, industrial relations, human resources, commercial and finance, facilities and asset management, construction, transport groups, 3PL operators and business development to name a few. There is a lot of evolution in this space too – process improvement, manual to automated, company partnerships etc.
MHD WOMEN IN INDUSTRY
Q. What do you like about working at Toll Group? A. Three key things come to mind on what I like about working at Toll: 1. T oll Group has many businesses across numerous industries covering forwarding through to last mile delivery. The exposure to various industries has been really interesting. The solutions you look at in the mining sector are quite different to a fashion retailer, although many principles of transport and warehousing are the same. I really enjoy learning about our different customers, their drivers and aspirations and seeing how we can make a difference for their business. 2. T oll also has some quite exceptional people working in the business. It has been a pleasure to meet people I have not worked with previously and learn from them whilst helping the business progress. In a 3PL environment having tenacity and flexibility are critical to succeeding in your role. Toll Group has had to weather a few storms of late and it has been great to see people’s resilience and focus during these times. 3. D evelopment of people is a key focus area for the business. People are moved across the business according to transferrable skills, not necessarily industry knowledge which is a great basis for developing and retaining people. A graduate program was established a few years ago for young people to rotate through the business for two years and then take on permanent roles in Toll. This has been very successful and the capability of graduates that I have seen is incredibly high. They have great levels of enthusiasm and energy coupled with new smarts. This program has been extended to Japan Post trainees (Toll Group are owned by Japan Post). I am thrilled to have three Japan Post trainees in my team currently who have had a steep learning curve but are showing great promise.
employees or colleagues whom we partner with to deliver great outcomes.
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Supply chain is the work horse of many product-based businesses. Our specialisation has so much variety and has transferrable skills across industries.
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Q. How does Toll Group demonstrate diversity? A. Toll is a diverse business with operations across 50 different countries. A global business needs to have appreciation for different capabilities and skillsets across many different ethnicities, gender and religion. Our group communications often highlight people working in different roles globally which is fantastic to see. As a woman in a senior position within Toll it is really pleasing that gender diversity is really evident across the business. This is also something that is focused on in the recruitment process as well as within the graduate program. As an example, in my Japan Post trainee program 2 of the 3 trainees are women. Q. What are you most looking forward to in your upcoming professional life? A. Firstly, seeing the people who have worked for me, or been mentored by me, succeed – whatever that may look like for them. At some point in our life we realise we have an obligation to help those coming after us and aspiring to leadership positions themselves. Secondly, continuing to have a challenging and satisfying career in supply chain. The best case scenario for me is driving something new, or something that is undergoing significant change, combined with coaching and developing people. Thirdly, learning more from new generations about how they see “professional life” and how we harness these differences between ourselves to benefit organisations and individuals. ■
Toll is a diverse business with operations across 50 different countries.
Q. What do initiatives like the Women in Industry Awards and Conference mean to you? A. To be honest I have not been involved with the Women in Industry Awards and Conference. However, recognising women who have done exceptional things is important, especially in an industry that is still male dominated. When these type of things get publicised it shows women who are contemplating getting into the industry, or are in the industry and aspiring to succeed, that there are many women in senior roles influencing outcomes. It is incumbent upon those of us in leadership positions to promote and mentor women through the industry, whilst not forgetting our male MHD AUGUST 2020 | 53
MHD PROPERTY FOCUS
EASTERN CREEK: EPICENTRE OF SYDNEY’S SUPPLY CHAIN NETWORK In this month’s Property Focus, MHD learns more about Eastern Creek with Colliers International industrial property experts Matthew Flynn, Tony Durante and Peter Dale.
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astern Creek is the premier industrial property hub in Western Sydney, sitting on the M4/M7 junction, accessible to millions of Sydneysiders thanks to the road connectivity. Leasing agents for Colliers International are seeing a spike in demand from industrial owners and occupiers seeking to be located in this logistics hub, close to both their customers and their suppliers. The rise of e-commerce, as discussed extensively in MHD Supply Chain Solutions, is something we’ve witnessed for some time – by Australia Post’s own figures, they are expecting e-commerce to grow from 10 per cent to 12 per cent of total retail spend by 2021.
BENEFITTING FROM INFRASTRUCTURE INVESTMENT Western Sydney continues to power ahead where major infrastructure projects circling the Western Sydney Airport are driving future warehouse demand in the area. The Australian and NSW Governments have jointly funded a road investment program committing $4.1 billion, which will in turn capitalise on the economic benefits that the new airport will deliver. More broadly, Colliers Research is currently tracking $77 billion in transport infrastructure projects across Sydney, 79 per cent of which are located in Western Sydney. Overall, the impacts of road, air and rail investment in Western Sydney are expected to drive both tenant and investment demand in the region. 54 | MHD AUGUST 2020
These projects underpin the regions’ future and will cement its status as Sydney’s economic powerhouse.
THE LATEST RESEARCH: INDUSTRIAL OCCUPIER SENTIMENT SURVEY A recent survey conducted by Colliers found that industrial occupiers are re-examining their supply chain network: over 85 per cent of respondents said that in order to achieve better efficiencies and respond to the impacts of COVID-19, they have had to re-assessed their supply chain. Equally, industrial occupiers are looking to the future, with 75 per cent of occupiers expecting their workforce to remain the same or grow over the next 24 months. We also found that when selecting a warehouse, 74 per cent of occupiers see access to key transport infrastructure and functionality as the most important factors. Colliers insights point to occupiers seeking to realign their supply chain with the present environment and we’re finding occupiers are seeking the right functional space for their business, with 30 per cent planning to move to a larger warehouse within the next year.
immediate lease, is a high-quality industrial premises being 15,947sqm of warehouse inclusive of 839sqm of quality office accommodation. Some notable features are: • B-double access • Suitable for 24hr, 7day operations • 9 on-grade, north facing roller shutter doors • 3 recessed loading docks with levellers • Outdoor alfresco area for staff • Generous awnings for all weather loading • Huge cubic capacity with internal
NOW AVAILABLE FOR LEASE: 36 HONEYCOMB DRIVE, EASTERN CREEK Located in this stretch of premier industrial real estate is 36 Honeycomb Drive, Eastern Creek. Colliers along with CBRE are exclusively appointed to market the property. Available for
The impacts of investment in Western Sydney are expected to drive both tenant and investment demand in the region.
MHD PROPERTY FOCUS
There has been a recent shift to sustainable thinking in industrial warehouses.
clearance up to 13.7m • Large hardstand up to 70m deep • 2,000amps power supply • Key logistics location – ideal for eastern seaboard distribution (north & south) One of the major benefits of the property is the opportunity for expansion – as many businesses are experiencing growth in capacity, the opportunity to take out
potential expansion space of 3,800sqm is ideal for businesses on a strong growth trajectory. “We’re seeing increased demand from industrial occupiers seeking a wellpresented property as essential in their search for premises. With many warehouses functioning or potentially functioning with customer-facing elements in mind, excellent presentation is paramount to reflect the occupier’s brand,” Matthew Flynn, Leasing Agent at Colliers International says. “The site 36 Honeycomb allows occupiers to future plan the growth of their warehouse footprint by an extra 3,800sqm. Avoiding the need to relocate to larger premises is a favourable feature not usually available to occupiers. The extra land can also be utilised as yard for external storage,” Tony Durante, Agent at Colliers International says. “There has been a shift to sustainable thinking in industrial warehouses, something I’ve witnessed in the market over a long period of time. I recently recorded a podcast talking about the importance of sustainable features, which this building has in spades: excellent natural light, LED lighting and other ESD initiatives – saving $ on output and increasing overall building efficiencies,” Peter Dale, Agent at Colliers International says. ■ To learn more or to inspect the premises, contact Tony Durante (+61 412 101 100), Matthew Flynn (+61 409 323 690) or Peter Dale (+412 434 738). MHD AUGUST 2020 | 55
MHD SCLAA
2020 ASCL AWARD CATEGORIES & CRITERIA ASCL INDUSTRY EXCELLENCE AWARD
ASCL SUPPLY CHAIN MANAGEMENT AWARD
This Award recognises and acknowledges outstanding achievements and contribution by an individual currently engaged across the supply chain industry. Persons nominated for this most prestigious award will be leaders and will have made significant change to the way a supply chain is managed and improved either academically, physically or technologically. Originally awarded in 1987 and dedicated to Mike Munns, FAIMM, this award remains a cornerstone of SCLAA’s commitment to recognising and promoting the importance of the supply chain industry and its people to continuously improving organisational strength and growth.
Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. This award recognises an organisation that can demonstrate significant achievement within a section or across their entire supply chain. Nominees should be able to clearly state the design and achieved results of the project or process that was envisaged and then implemented. The trophy was first awarded in 1984 and is dedicated to Doug Beattie.
CRITERIA Any person nominated with demonstrable achievement that has provided change, improvement, education, support, development, implementation or significant results that has bettered their own or general supply chains. Limited to Australian citizens working technologically, academically or physically across the supply chain industry. The judges will look at the sustainability and national and/ or international implications of the demonstrated achievements. 56 | MHD AUGUST 2020
CRITERIA The criteria for this award are not limited by industry as all industries have a supply chain. Manufacturers, distributors, wholesalers, retailers, and materials or resource service industries can and do play a vital role in supply chain deliverables.
ASCL INFORMATION TECHNOLOGY AND MANAGEMENT AWARD Information remains the most important requirement of any supply chain. Information technology is where the majority of supply chain improvements has been made. Nominees for this award will demonstrate where their use
CALL FOR SUBMISSIONS NOW OPEN Submissions close on Friday, 24 October 2020. Finalists to be announced on 18 November 2020. Winners will be announced at the ASCL Awards Gala Dinner to be held in the first quarter of 2021. Date and venue to be advised.
of existing or new technology has provided significant improvements to their management of information and/ or their supply chain processes. The trophy was first awarded in 1994 and is dedicated to the late Len Smith FAIMM. CRITERIA The judges will be looking for nominees that can provide reasonable detail in the determined area where the technology was correctly applied and what - if any - obstacles were discovered and how they were overcome to achieve the information improvement. The technology can be physical, logical, or cloud-based applications and the technology is not limited to just pure information
MHD SCLAA
although it is expected that information of some sort would be a beneficiary.
ASCL FUTURE LEADERS AWARD The purpose of this award is to provide incentive and recognition to young supply chain professionals who are both currently working in and wish to continue their career path. Nominees for this award should be able to demonstrate their passion and commitment to taking the supply chain toward tomorrow. The SCLAA wishes to showcase finalists and provide impetus to continue to attract the brightest to the industry. First awarded in 2009 and dedicated to Vince Aisthorpe. CRITERIA Any person under the age of 30 that has shown proven committeemen to learn and gain knowledge and has applied their achieved skills to deliver improvements within their supply chain field. Particular attention will be given by the judges where nominees have been encouraged and able to use new techniques, technology or developed new processes.
ASCL ENVIRONMENTAL EXCELLENCE AWARD The ASCL Environmental Excellence Award recognises corporate leadership contributing to the solution of environmental sustainability within our industry through performance and action. The trophy was first awarded in 1966 and is dedicated to Mr Ken Pike. CRITERIA The development or delivery of a service or initiative that significantly contributes to the solution of sustainability through a reduction in energy, materials and or natural resources. Describe the application and applicability to the industry thereby promoting best practice. Describe how the initiative has raised the level of awareness of the environment and sustainability within the organisation.
ASCL INTERNATIONAL SUPPLY CHAIN AWARD Recognising that Supply Chains know no boundaries, the ASCLA International Supply Chain Award is given to a Company, Association
ASCL FUTURE LEADERS AWARD PRIZE SPONSOR Your training and development partner Empowered people. Better results. The winner of the 2020 Future Leader Award will receive enrolment into Leadership Management Australia’s (LMA) “The Performance Edge” 10-week development course. LMA has been delivering our proven leadership, management, sales and team training and development solutions to clients for over 45 years in Australia. “We improve the productivity of organisations by improving their people, making them better organised, better communicators and better equipped to resolve issues. Our learning process is unique, proven and guaranteed, producing measurable results and an identifiable R.O.I. providing our participants lasting attitudinal and behavioural changes. We don’t train people, we develop them and there’s a massive difference.”
or an Individual that may operate internationally and are able demonstrate their capability, commitment and achievements across any spectrum of the sciences, practices, disciplines or efforts to promote and improve the knowledge and acceptance of the importance of the supply chain. CRITERIA The issue of this award is not determined from any specific or objective criteria. It is determined to provide evidence, publicity and reciprocity against achieving closer relationships and increased recognition of the supply chain as a global industry. Judging will be limited to 3 judges, not necessarily drawn from the standard judging panel but drawn from persons considered suitable and capable of determining a fitting recipient.
ASCL TRAINING, EDUCATION & DEVELOPMENT AWARD Training, education and development remains a vital part of allowing knowledge to be utilised for new ideas and supply chain improvements to be discovered and then implemented This award will be presented to a company that can best demonstrate their committeemen, application and results of providing training, education and development of their people. The trophy was first awarded in 2002 and is dedicated to the late Professor Peter Gilmour. CRITERIA Any company nominated for this award must be directly involved within the supply chain industry. The demonstrated development, training and education of person or persons employed by the nominated company is a mandatory requirement to be considered for this award. The judges will pay particular attention to where the supplied training, education and development has led to improvements achieved for both the company and the individual. ■
For further enquiries please contact LMA on 1800 333 270 For more information, visit: www.sclaa.com.au/awards/. MHD AUGUST 2020 | 57
MHD FROM ASCI
A
ASCI UPDATE
s this financial year comes to a close, the financial impact of COVID-19 on our balance sheets becomes a reality. We, at ASCI, are suffering the same fate and have made some tough decisions to adjust our cost base (e.g. new website, reduced office hours) considering the current business environment and focus on professional development which is one of the key learning of COVID-19 that it is not companies but supply chains that compete. Over 1,000 members have joined our free webinars and will soon add masterclasses and workshops to the programme throughout the year. Together, we can expect further damage as the year progresses. However, I believe much of the damage to our supply chains can be offset and turned into opportunity, as we’ve seen with so many trail blazers in our community already. When we overcome this challenge, we intend to honour these efforts through our ASCI Awards Night which will be the 28th year running. Submissions are now open via the conference website www. 58 | MHD AUGUST 2020
asci-2021.com.au. We aim to recognise that some things should not revert back to the way they were. We should therefore commit to a different way of being and doing. ASCI held a series of Think Tanks to build our COVID-19 position in line with the strategic plan: ASCI2025 – A Strategic Roadmap. Three phases were identified to aid resilience and minimise impact: 1. Response: Economic hibernation. Reflect on COVID-19 and identify key learnings 2. Recovery: Exit the economic hibernation. Establish plans to act on learnings that will reframe supply chain management and its role in the organisation 3. Regeneration: Identify competitive advantage and build supply chain reputation and a sustainable future We are currently in the Recovery Phase and have already begun to reframe supply chain management and its role in the organisation. Last month, I presented at the CEDA State Of The Nation event where I established a realistic view of supply
chain management responsibilities. My key messages to over 500 policy makers from Government and private sector leaders were: • S upply Chain Managers are used to disruption – it’s BAU • S upply Chain Managers assess risks every day • C ompanies don’t compete - supply chains compete • A ct with speed on an agile and flexible supply chain design • D ig deep and develop trust with suppliers for visibility • S upply Chains are behind in maturity, but ASCI’s Professional Accreditation Scheme provides a pathway to maturity • T echnology is only as good as the people who use it to implement best practice processes and build partnerships • S upply chain design strategy needs to be addressed at the board level • T hank your supply chain people for their essential service during COVID-19 and always! In last month’s MHD, our Premier Channel Partner Association For
MHD FROM ASCI
Over 1,000 members have joined ASCI’s free webinars.
Supply Chain Management CEO Abe Eshkenazi said we are “Masters of Orchestration” and our cross functional peers now hold a deeper respect for the complex environment within which we operate. He says roles and responsibilities are now beyond expertise. “We need professionals who can collaborate, are cross functional, adaptable and responsible,” he says. With increased demands on supply chain professionals, he says professional development and education is now more important than ever. The 10% discount on APICS certification offered by ASCM and passed directly onto ASCI Members this month is testament to his and our commitment to this sentiment. Visit the shop on the new ASCI website to take advantage of this sale. At ASCI, we believe we will head into the Regeneration Phase next year. We’ve identified five themes to run through our webinar series and to take us into our annual conference in February including: 1. L eadership and talent development 2. A gile operations and risk management
3. T rending technology and supply ecosystems 4. Ethical performance and governance 5. S ustainability and social licence to operate We already have a dozen expert presenters secured for the ASCI2021 conference: Supply Chain Vision in The Decade For Action and registration is now open with the ASCI Member discount code: ASCI2021. Visit the website at www.asci-2021.com.au. Places will be strictly limited according
to the social distancing restrictions. Be sure to register to our webinars, masterclasses and workshops to stay in touch with your professional community during these difficult times. Take care and if you must travel, be safe. Warm regards Alexandra Riha President Australasian Supply Chain Institute ■
MHD AUGUST 2020 | 59
MHD FROM THE ALC
SENSIBLE REFORMS WIN COMMUNITY BACKING Before March of this year, recent generations of Australians read about wartime rationing in their school text books. The idea they themselves would be unable to walk into a supermarket and obtain staple items seemed far-fetched.
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hen came COVID-19 and the shock of empty supermarket shelves, as panic buying of basic items like pasta, rice, toilet paper and cleaning products set in. There are many challenging aspects to managing COVID-19 in a public policy sense, but perhaps the most difficult aspect is the uncertainty and unpredictability of the virus. Many Australians took comfort from our seeming early success in ‘flattening the curve’. Yet, over recent weeks, the trendlines for new infections in some parts of the country have started to move in the wrong direction. These regrettable outbreaks have been accompanied in some instances by a re-emergence of panic buying behaviour in COVID ‘hot-spots’ – with retailers and suppliers having to again make adjustments to ensure continued supply of essential items. Those working in freight transport know all too well that behind every product line and well-stocked retail store is a supply chain that involves multiple personnel, numerous transactions, different transport modes and complex planning and scheduling, all of which are required to transport products from their point of origin to the shelf, or to the consumer’s doorstep. The most pressing challenge for logistics companies providing services to retail outlets at the onset of the 60 | MHD AUGUST 2020
COVID-19 pandemic was getting stock into stores quickly enough to satisfy extraordinarily heightened levels of consumer demand. Curfews that prohibit deliveries during certain hours proved a significant barrier to addressing that challenge. Fortunately, this barrier was quickly addressed, and within about a week, governments took action to suspend curfews and give logistics companies the flexibility needed to facilitate overnight deliveries. ALC has long advocated for the removal of such blanket restrictions, many of which date from the 1980s – an era of different considerations. Certainly, the ‘night-time economy’ (let alone a 24/7 one) was not a factor 40 years ago. Inflexible regulations like curfews do nothing to recognise or incentivise take-up of new and emerging vehicle technologies that can be deployed to undertake freight tasks less intrusively. For instance, several larger operators are keen to pursue more rapid uptake of electric delivery vehicles, which have lower emissions and very low noise levels when operating. But there is little reason for them to invest in such technology when the blanket application of operational restrictions does nothing to recognise these advantages. Like other industries, logistics operators and their customers are adjusting to the reality of operating in
Curfews that prohibit deliveries during certain hours proved a significant barrier to addressing the challenge of keeping stock levels high. the COVID-19 world and responding to changes in the way consumers wish to access their essentials. COVID-19 has altered consumer demand and expectations, particularly around home deliveries of essential including groceries. Increased demand for those services will remain postpandemic. At least for the foreseeable future, COVID-19 has also altered public transport patronage. With commuters potentially reluctant to use public transport, we need to consider what that will mean for congestion on our roads – and ensure logistics operators can operate outside of peak times. Keeping curfews off will give logistics operators and their customers a greater capacity to minimise their impact on other road users. Simply defaulting to blanket restrictions designed for a prepandemic world would be a retrograde policy response. As the Prime Minister himself noted recently, when the curfews were removed in March, “the sun came
MHD FROM THE ALC
up the next day. It was extraordinary.” Indeed, industry has had virtually no negative feedback where restrictions have been relaxed, because it has not abused the flexibility and has sought to minimise impacts. The responsible approach taken by industry is also being reflected in strong community support for sensible regulatory changes that will ensure our supply chains are more agile and resilient in the face of unanticipated events such as COVID-19. Recently, ALC undertook a survey of community attitudes in relation to freight in the wake of the COVID-19 experience, and some of the findings were very revealing. The survey of 1,205 Australians commissioned by ALC and undertaken by Newgate Research in mid-June - shows strong majority support for the permanent removal of curfews that prevent overnight deliveries into supermarkets and other retail premises (71 per cent support, and only 7 per cent opposed), as well as permitting
essential logistics infrastructure including ports and warehouses to operate at night to facilitate more efficient freight movement (67 per cent support, with just 7 per cent opposed). COVID-19 has given Australian communities a newfound appreciation for just how important the efficient operation of supply chains is, with 78 per cent of respondents agreeing the pandemic has made efficient deliveries to homes and businesses more important. There was also a heartening degree of community support for the idea that freight and logistics operations should be given a greater focus in planning schemes operated by state and local governments, with 76 per cent of respondents agreeing it is “important for our communities to be well-planned with freight land, other industrial land and residential developments to all be located in appropriate places.” This point is important, given that everyday challenges such as road traffic congestion and inadequate supply of suitable land for logistics facilities can
often be traced back to poor planning. With the Federal Government committed to the developed of a set of National Planning Principles under the National Freight and Supply Chain Strategy, this clear demonstration of community support for a more considered approach to planning should provide policy-makers with confidence that the community is prepared to support reform that have long been relegated to the ‘too hard’ basket. Clearly, greater flexibility in the regulation of freight movement can work – and perhaps more than at any other time in recent decades, freight and logistics operators, their customers and the community are aligned on the need for reform to ensure reliable access to everyday essentials. Accordingly, now is the right time for industry and governments to work towards a more balanced system flexible enough to accommodate modern economic realities and agile enough to harness advantages presented by modern vehicle technology. ■ MHD AUGUST 2020 | 61
MHD THE LAST WORD
BORDER HOLDS ON PPE F REIGHT & TRADE ALLIANCE PTY LTD | AUSTRALIAN PEAK SHIPPERS ASSOCIATION
Freight & Trade Alliance (FTA) was made aware by members of extensive delays and significant storage costs being incurred at the border for Personal Protective Equipment (PPE) and investigated. New Item 57 of the 4th Schedule to the Customs Tariff requires BOTH that the goods are medical or hygiene products AND that those goods are capable of use in combating Covid-19. Bylaw 2019608 hangs off Item 57, so those are preconditions to its use. PPE limit the transmission of “organisms” to humans. FTA advised members to be cautious of making claims in regard to face masks, and other PPE without written confirmation from the importer that they limit transmission. FTA understands that dust masks, for example, do little to substantially limit the transmission of organisms to humans, while noting that no degree of “limit” is specified. Soap is a difficult decision given we are told hand washing kills the virus and any soap may therefore be covered by the bylaw. ACN 2020/20 refers to eligible PPE as being used to “treat, diagnose or prevent” the disease. FTA has recommended that further guidance is required because of industry concerns that in future audits the interpretation of the bylaw may change. Government concern with allowing a large influx of these goods was the risk of counterfeit goods or goods that did not satisfy Therapeutic Goods Administration (TGA) requirements. As a consequence, many consignments were held at the border for significant periods while the consignment was referred to TGA, for assessment. A high proportion of detained goods did not require TGA registration as they were for industrial or similar use and/ or required registration by National Industrial Chemicals Notification and Assessment Scheme (NICNAS) as a cosmetic, e.g. some hand sanitisers. Such goods are often duty free under 62 | MHD AUGUST 2020
free trade agreements and did not claim the bylaw. Goods such as hand sanitisers to the World Health Organisation (WHO) formulation and falling within the coverage of Therapeutic Goods (Excluded Goods Hand Sanitisers) Determination 2020, also did not require TGA registration. While we understand counterfeit goods are a concern, suspect goods should only be detained by Australian Border Force (ABF) where the holder of the trademark is registered with ABF. FTA has queried whether there are any such registrations. TGA advise that during May 2020 they received a significant volume of referrals from ABF. They had neither the staff to process the many referrals nor, we found, an understanding of the critical nature of time frames in import consignments and the significant storage and other costs that accrue. TGA advised FTA that they provided training to ABF, but its extent and usage is unknown. Feedback from customs brokers is that Illustrative Descriptive Material (IDM) and NICNAS / TGA registrations were provided to redline upon lodgement or shortly thereafter. Any customs broker queried by FTA was also able to provide photos of the relevant goods to review any claims on the labelling. This is not to claim 100% compliance. It is to put on record that some of the most significant storage amounts were for consignments for which sufficient IDM was provided or available on request. Significant storage costs were incurred by many importers as a consequence of the delayed assessments by TGA. The largest referred to FTA was in excess of $20,000, but we have other examples of storage in excess of $5,000. ABF refused s.71E movement permission to move held goods from the wharf and as a direct consequence of this, the storage costs were far higher than might otherwise have been incurred. FTA are not querying the need for some consignments to be investigated, we are alerting the regulator to the costs being incurred in an already
Susan Danks, Head of Customs and Regulatory Compliance. difficult business environment, and reminding of options available such as post entry audits that do not disadvantage genuine importers whilst investigations proceed. It is FTA understanding that goods requiring listing on the ARTG as a medical device are not prohibited from being imported, but they cannot be supplied without the listing. The GST Act does not include “importation” as a “supply” in the definition of that term. This reinforces the opportunity of post entry audits and s.71E movement permissions rather than border holds. We are aware that ABF officers have tried to assist and that the delays appear to be with TGA assessment, so this is not a criticism of ABF officers or TGA. TGA registration is not a matter that has been extensively checked at the border and so it is unlikely officers would be familiar with the requirements and timeliness required in dealing with international consignments. FTA have recommended to government that the measures should be extended to at least the end of September 2019 as this would allow for coverage during Australia’s flu season and stock in case of a second wave. If appropriate, the measure could be concluded at end of the December 2020 as the threat of the pandemic and a ‘second wave’ should have sufficiently diminished by this time. ■
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