SEPTEMBER / OCTOBER 2019 COVER STORY
INVESTING TO SERVE
Jungheinrich Australia has service at the core of its latest investments
SUPPLY CHAIN UNITY
Why a right here, right now mindset calls for collaboration
BEST OF BREED
Which technological solutions are best suited to the warehouse of the future?
IN FOCUS:
FORKLIFT GUIDE 2019
TIRE REPLACEMENT MADE EASY
MAXIMUM VALUE
MAXIMUM UPTIME
ENHANCED SAFETY
REDUCED IMPACT
SERVICE MADE EASY
Trelleborg has developed an innovation for premium industrial tires that lets you know when your tires need replacing through a simple visual reference.
Choosing Pit Stop Line from Trelleborg means always replacing tires at the right time ensuring that you keep your forklifts working and get full value for money.
We call this innovation Pit Stop Line.
Maximum Value, Maximum Uptime.
Phone: +61 438 120 728 www.trelleborg.com/wheels Email: Paul.Hansen@trelleborg.com www.trelleborg.com/en/wheelsystems/au Trelleborg Wheel Systems Australia PTY Ltd 25 Darby Way, Dandenong South VIC 3175
MHD FROM THE EDITOR
MHD Supply Chain Solutions CONTACT MHD Supply Chain Solutions is published by Prime Creative Media 11-15 Buckhurst Street, South Melbourne VIC 3205 Telephone: (+61) 03 9690 8766 Website: www.primecreativemedia.com.au
THE TEAM Managing Director: John Murphy Publisher: Christine Clancy Group Managing Editor: Sarah Baker Editor: Melanie Stark Business Development Manager: Bowie Phillips Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Kerry Pert, Madeline McCarty Client Success Manager: Janine Clements
FOR ADVERTISING OPTIONS Contact: Bowie Phillips bowie.phillips@primecreative.com.au
SUBSCRIBE Australian Subscription Rates (inc GST) 1yr (6 issues) for $78.00 2yrs (12 issues) for $120.00 – Saving 20% 3yrs (18 issues) for $157.50 – Saving 30% To subscribe and to view other overseas rates visit: www.tandlnews.com.au or Email: subscriptions@primecreative.com.au
ACKNOWLEDGEMENT MHD Supply Chain Solutions magazine is recognised by the Australian Supply Chain Institute, the Chartered Institute of Logistics and Transport Australia, the Supply Chain and Logistics Association of Australia and the Singapore Logistics and Supply Chain Management Society.
A UNITED VOICE FOR THE INDUSTRY
I
am proud to present this bumper edition of MHD Supply Chain Solutions magazine. This edition is the first magazine to feature the combined content of MHD Supply Chain Solutions and Logistics & Materials Handling magazine. For the past decade, Prime Creative Media has focused on growing the transport and logistics sectors, and the merge of these titles will allow us to provide even more communication channels to represent and feature the key issues in logistics and the supply chain. This is also the key driving factor behind MHD Supply Chain Solutions becoming a monthly publication in 2020. The aim of this merger is to give more opportunities to highlight the great work that takes place in Australia across the entire breadth of the logistics, materials handling and supply chain sectors. In this edition, we showcase an array of developments and innovations from voice solutions in the warehouse on page 44, to selecting the right type of barcode on page 40, to what Inland Rail will mean for the rest of the logistics sector on page 70, to optimising last-mile delivery on page 54 and stocktaking drones on page 42 – we haven’t left a stone unturned. This month’s cover story features Jungheinrich’s latest forklift products and the organisation’s support for growing e-commerce grocery provider Hello Fresh. Grant Stewart, Sales and Marketing Director at Jungheinrich Australia reveals why a customer survey led to significant change in the company’s approach to service and support. We also have a Forklift Guide for 2019, featuring the best in class in Australia including Toyota Material Handling, Crown and Jungheinrich on pages 56-62. We look forward to continuing to provide a voice for the industry and continue to bring our readers cutting-edge supply chain management information from the world’s leading thinkers and practitioners, together with in-depth case studies and the latest innovations in equipment and software developments.
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 SEPTEMBER / OCTOBER 2019 | 5
DELIVERING MORE THAN JUST FORKLIFTS. THAT’S THE TOYOTA ADVANTAGE.
At Toyota Material Handling we recognise that choosing the right supplier is just as important as choosing the forklifts and warehouse equipment that will meet your needs. As Australia’s leading forklift company, it doesn’t matter whether we are supplying you with a single spare part, a rental forklift, or helping you manage your entire fleet, our objective and commitment remains the same – adding value to your operation. That’s the Toyota Advantage.
1800 425 438
www.toyotamaterialhandling.com.au
S O L U T I O N S F O R E V E R Y PA L L E T ®
ISSUE #5 VOLUME 49
SEPTEMBER / OCTOBER 2019
THIS ISSUE COVER STORY
COVER STORY
16 Leading by innovation
MATERIALS HANDLING 12 Like-minded partnerships 14 Helping rural communities 24 Cool solutions 29 Taking safety seriously 30 Mobile technology in the warehouse 36 Reliable communication 46 Smarter cleaning 64 Reduce operational costs with AGVs
16
SUPPLY CHAIN 20 Flexibility is the new black 34 Supply chain that works for everyone 38 A family affair 44 Best of breed solutions for the entire value chain 50 Planning for peak season 54 Last-mile efficiencies
TECHNOLOGY 40 Breaking barcode barriers 42 Stocktaking drones
EVENTS SEPTEMBER / OCTOBER 2019 COVER STORY
INVESTING TO SERVE
Jungheinrich Australia has service at the core of its latest investments
SUPPLY CHAIN UNITY
Why a right here, right now mindset calls for collaboration
24
26 MEGATRANS: Collaborating across the supply chain 33 Beyond expectations: Manhattan Exchange 2019
PRODUCT SHOWCASE 48 Quicker and easier loading 52 Less is more
BEST OF BREED
Which technological solutions are best suited to the warehouse of the future?
IN FOCUS: FORKLIFT GUIDE 56 Toyota Material Handling Australia 58 Crown Equipment 60 Jungheinrich Australia 62 Vin Rowe
IN FOCUS:
FORKLIFT GUIDE 2019
DEPARTMENTS AND REGULARS
ON THE COVER Grant Stewart, Sales and Marketing Director at Jungheinrich Australia reveals why the growing forklift provider is putting innovation and service at the forefront of its investments.
38
08 News 68 Women in industry 70 Property focus 72 ALC 74 From the SCLAA 76 ASCI – contacts, courses and news 78 The last word MHD SEPTEMBER / OCTOBER 2019 | 7
MHD NEWS
Freight industry on board for airport opportunity
T
en of Australia’s major freight companies have entered a memoranda of understanding (MOUs) with Western Sydney Airport. The MOUs will see Western Sydney Airport work with the air freight industry to design concepts for an on-airport freight precinct and begin discussions about potential operations from Sydney’s new airport. Western Sydney Airport CEO Graham Millett said Western Sydney International (Nancy-Bird Walton) Airport has the potential to become Sydney’s most important freight hub, generating many of the Airport’s thousands of jobs. “The Airport’s unrestricted 24/7 operations will be the key to unlocking new export opportunities for businesses and producers across Western Sydney and NSW,” he said. “Goods produced in NSW will no longer have to be trucked to Brisbane or
Melbourne in order to reach lucrative Asian markets overnight.” Freight companies signing up to work with Western Sydney Airport on concepts for the air freight hub include
Australia Post (including StarTrack), DB Schenker, DHL Express, DSV Air and Sea, FedEx, Menzies Aviation, Swissport, Qantas Freight, Skyroad Logistics and Wymap.
Freight companies signing up to work with the airport include Australia Post, FedEx and Qantas Freight.
Woolworths breaks ground on new $135m distribution centre
W
oolworths has commenced building works on the supermarket’s new Melbourne Fresh Distribution Centre (MFDC) in Truganina, Victoria. The multi-million state-of-the-art facility, which will be built by Vaughan Constructions, will store and deliver fresh produce and chilled products to hundreds of Victorian supermarkets, create 200 jobs during construction and 300 permanent new jobs when it opens in late-2020. The custom-designed facility will replace Woolworths current operations at Mulgrave, and provide the leading national retailer with a market edge in terms of supply chain dynamics. The MFDC will be co-located with Woolworths’ meat supplier Hilton 8 | MHD SEPTEMBER / OCTOBER 2019
Meats’ production facility. Co-location with Hilton and closer proximity to more fresh food suppliers
The new site will store and deliver fresh produce to supermarkets across Victoria.
will take up to 600 trucks off the West Gate Bridge each week and a further 3,000 truck movements off Melbourne roads each year. “This development will help us deliver top quality fruit and vegetables to our customers fresher, faster and more efficiently than ever before. At one-and-a-half times the size of the MCG field, the distribution centre will provide a significant uplift in capacity to support our continued growth in Victoria. We’re proud to be investing in a best-in-class supply chain network in Victoria – delivering fresher food to our customers, taking trucks off Melbourne’s roads, and creating hundreds of new jobs,” Woolworths Chief Supply Chain Officer Paul Graham said.
INTRODUCTORY PRICE
$3,900
INCL GST
ZOWELL XP 1.5 TON
ELECTRIC PALLET TRUCK 1500KG LOAD CAPACITY
ZOWELL’S ELECTRIC MATERIALS HANDLING EQUIPMENT COVERS A VARIETY OF PRODUCTS SUITABLE FOR A WIDE RANGE OF INDUSTRIES.
ALSO AVAILABLE ELECTRIC PALLET TRUCKS, ELECTRIC STACKERS, ELECTRIC TOWING TRACTORS AND ELECTRIC COUNTERBALANCE FORKLIFTS.
HARNESSING 50 YEARS EXPERIENCE IN SERVICING THE AGRICULTURAL SECTOR, VIN ROWE NOW EXTENDS ITS SERVICES TO THE LOGISTICS SECTOR WITH AN EXCITING NEW RANGE OF ELECTRIC MATERIALS HANDLING SOLUTIONS.
+61 (3) 5623 1362 | info@vinrowe.com.au | vinrowe.com.au
MHD NEWS
Asahi introduces automation at its Heathwood DC
D
ematic has helped Asahi Beverages to successfully increase productivity by 250 per cent with the installation of an Automated Storage and Retrieval System (ASRS) in its new Heathwood DC. Asahi Beverages has a number of distribution centres (DCs) located across Australia. Previously in Brisbane, Asahi operated across multiple locations and used manual forklifts for block stacking, which they found came with a lot of disadvantages and challenges. “We previously had a very labour intensive system in place, with every truck that came in having to be unloaded by a forklift, we then had to receive the paperwork manually, check the pallets manually, move the pallets into the storage location and then do all that in reverse to pick them,” Nathan Lucinsky, Heathwood DC Manager, Asahi said.
In making the decision to consolidate its sites into one DC and upgrade to an automated warehouse solution, Asahi wanted to achieve a number of benefits, including reducing costs, improving efficiency and productivity, and being able to better meet the needs of its customers. The high bay racking at Asahi Heathwood DC is 13 levels high, 34 bays deep, and the ASRS extends to six pallet positions deep on either side of the six
cranes, accessed by satellite carts. In total there are approximately 31,500 pallet storage positions. “After assessing Asahi’s warehouse requirements, we knew that the best solution for them was the six-deep satellite ASRS. The ASRS we built for Asahi uses Dematic’s newest and fastest crane, the 1200 H1. This is also the tallest satellite system we have built in Australia,” Dominic Figliano, Project Manager, Dematic said.
Asahi recently made the decision to consolidate its sites into one DC.
Komatsu signs deal with DHL in Australia
K
omatsu has signed a new multi-year agreement with DHL Express and DHL Global Forwarding, two divisions under Deutsche Post DHL Group. DHL will import more than a million
DHL will provide end-to-end air freight imports for Komatsu.
10 | MHD SEPTEMBER / OCTOBER 2019
kilograms of Komatsu machinery, equipment and spare parts each year into Australia and New Zealand. “Annually, we transact in excess of 1.5 million stock keeping units line sales in Australia. Often, exceptional
customer service comes down to having products and parts precisely available when our customers need them. Logistics is a key component of our ability to deliver a first rate customer experience ensuring that our supply chain is fully optimised,” Sean Taylor, CEO and Managing Director, Komatsu Australia Pty Limited said. In close coordination with Komatsu’s foreign offices and suppliers, DHL will provide complete end-to-end air freight imports for Komatsu primarily from the US and Japan to Australia across Komatsu’s three distribution centres in Sydney, Brisbane and Perth. DHL will also manage the entire customs brokerage process, as trade compliance and regulations become increasingly crucial in optimising global supply chains.
Want to know how to optimise your fleet and reduce costs? Crown is the one.
Committed to being #1 in customer service since 1966. If lift truck fleet data is knowledge, then knowledge is power. The power to drive down costs while driving up improved warehouse efficiencies and results. Crown puts its customers in the driver’s seat on every aspect of their operational data. Helping you collect, measure, benchmark, analyse and act on data from your fleet lift trucks, operators, applications and services to right-size your fleet. It’s an integrated range of data management tools including FleetStats®, and InfoLink®, exclusive to Crown.
Call 1300 283 390 or visit crown.com
MHD MATERIALS HANDLING
LIKE-MINDED PARTNERSHIPS Followmont Transport has had new Toyota Material Handling forklifts exclusively at the heart of its warehousing operations for more than 25 years.
W
ith 18 owned regional depots, a combined 40,000m2 warehousing and storage facilities and a network of local contractors, the Brisbane-headquartered business Followmont Transport operates one of Queensland’s fastest transport networks, which also covers New South Wales. With seven-day-a-week services to most locations, Followmont is the preferred carrier for many tier one accounts, including many household names. They are also the delivery companyof-choice for many interstate transport companies, SMEs, online retailers, farmers, mums and dads and regional businesses - carrying everything from pharmaceuticals and fresh produce to spare parts and paint. Followmont CEO, Mark Tobin, says the business prides itself on going the extra mile to deliver in the fastest time possible, whether a single parcel or a complete transport, warehousing and logistics solution, and that this performance has helped the secondgeneration family business has experienced rapid growth. It is presently building three new depots and two new warehouses – to the tune of a $20million investment – to further expand and improve its network. “We’ve had a massive transition over the last 15 years and pretty huge growth over that time. Today we employ over 850 people and have around 250 forklifts spread out across our depots, with the majority being Toyota 62-8FD25 8-Series 2.5 tonne dieselpowered machines,” Mark says. Mark attributes the business’ success to number of factors including its principles, business partnerships and performance. “We are a close-knit family business and we adhere to our values. We are personal first, and commercial second. We pride ourselves on speed-of-delivery and customer satisfaction. That’s our approach and 12 | MHD SEPTEMBER / OCTOBER 2019
those values are behind our longevity and continued expansion,” he says. Followmont Transport has always striven to seek partnerships with likeminded suppliers and such is the case with its forklift supplier Toyota Material Handling Australia (TMHA), with whom shared values have formed the basis of a relationship extending back 25 years. “We are dedicated to our customers, our people and our suppliers. This is key to our values and behaviours. It’s all about our people and our partners, making sure we’re engaged with them and vice-versa,” Mark says. “We have a couple of key suppliers and Toyota Material Handling Australia is one of those. The Toyota relationship goes back a long way, being key to our business for 25 years- plus, which is a pretty amazing duration. In a way, they have been part of our business and we still look at it like they are part of our business. Likewise, Toyota really values our business and it shows.” TMHA corporate account manager, Jason Fennell, agrees. “We hang our business on our Toyota Advantage - part of which is Tailored Business Solutions - and have been proud to have been available to provide advice on the best business solutions and the right equipment and service support for Followmont Transport over such an extensive duration. Our solutions are fully tailored to their needs,” Jason says. Another key Toyota Advantage known to be vitally important to Followmont’s success is the demonstrated quality, durability and reliability of TMHA’s equipment. “Followmont’s business hinges on being able to deliver goods on time and it simply cannot sustain any delays caused by equipment failure,” Jason says. “They love our forklifts because they have been proven to be reliable. We think that’s why they keep on coming back to us.” After working his way up in the
Followmont adheres to a policy of buying new Toyota forklifts outright. business from humble beginnings, Followmont’s Mark Tobin has settled on a model he is confident in. “I started out as a mechanic by trade and have since done every job in the business – all the way from sweeping the floor to CEO. I know our business inside-out and that extends to the performance of the products we deal with,” he says. As such, Followmont adheres to a policy of buying new Toyota forklifts outright, every four years or 10,000 hours. “Whenever we hit that mark, I trade them in for new ones, year in year out. Toyota durability is already very good, but this way even less can go wrong and it ensures they’re not pushed too hard, even accounting for misuse. “We as a business simply can’t afford any down-time. The volume of our deliveries is too great. One of the reasons I buy new Toyota forks is that I don’t see them in our repair workshop. Nothing goes wrong with them. They just keep going, just keep working. “Because of this, I don’t have to buy other new forklift brands. I haven’t purchased a new forklift that wasn’t a Toyota for over 20 years.” When asked whether this is likely to continue, Mark confidently says yes. “we strive to be the best and we need the best partners and equipment to meet our own high service standards and customer expectations. We’re expecting to continue strongly with TMHA into the foreseeable future. The relationship has proven so successful for our business, why would we change?” ■
MHD MATERIALS HANDLING
HELPING RURAL COMMUNITIES David Sultana, Director of Marketing, Asia Pacific talks about the recent work Crown has been doing with charity Rural Aid.
T
he Bureau of Meteorology has released a statement describing the most recent drought affecting eastern Australia as one of the most severe in 120 years of records. The Bureau issued four Special Climate Statements relating to last year’s conditions, declaring extreme and abnormal heat, as well as a number of broken climate records. The conditions got so bad that the entire state of New South Wales was declared in drought in the latter half of 2018. Farmers are still struggling to recover from the many damaging side-effects of the ongoing drought. “This is still a major issue, though the media coverage isn’t as regular as it has been, the drought is still having a tragic impact on rural communities,” David says. Crown Equipment operate across Australia’s regional areas and has many customers who are affected by the drought conditions, David says. “We wanted to get involved. We wanted to help in any way we could. We want our customers and the rural community that is experiencing this very difficult time to know that we are there through the good and the bad,” he says. Rural Aid is one of the largest rural charities in Australia. Founded by Charles and Tracy Alder in 2015, its focus is to provide support to farmers and rural communities in 14 | MHD SEPTEMBER / OCTOBER 2019
times of natural disaster as well as supporting the sustainability of the agricultural sector. Crown Equipment has been involved with Rural Aid to help out during three of the charity’s larger hay bale drops so far, with the most recent one taking place in Moree, NSW. On 13 August, six hundred bales of hay were dropped in Moree from 17 trucks from South Australia. The hay was distributed to more than 50 farmers. Crown Equipment provided a number of specially equipped forklifts to help offload the bales from the trucks. “Before we got involved it was a case of just getting whatever the local people could get their hands on to move the hay. We wanted to help make it as efficient as possible so we took a number of new forklifts along to the drop, so less people can get the work done faster. The forklifts also required bale spikes to lift the hay so we had them fitted,” David says. This drop was the latest of three that Crown Equipment has provided support for, with the largest one taking place in Tamworth, NSW last year where 2,100 bales were delivered. Rural Aid CEO, Charles Alder says Crown Equipment has been a fantastic support to struggling farmers and to Rural Aid during these unprecedented times. “We need to help our farmers in
any way we can to get feed to their stock. It can also be a challenge finding operators with equipment to unload large hay bales in remote areas. Crown Equipment’s donation of the use of their forklifts and drivers on three of Rural Aid’s large hay drops helped to ensure the operations ran smoothly for all,” Charles says. Additionally, Crown Equipment has donated a walkie stacker to the Rural Aid head office so that the organisation can better manage the logistics of its donations. Crown has also provided a financial donation to the organisation. “We want Rural Aid to know that we are here to help. They can pick up the phone and let us know how we can help anytime,” David says. This was evident with the recent drop off at Moree where Crown were called upon one week before the delivery was going to happen. “We got the call and we jumped on it straight away, organising the transport for our forklift trucks to help with the drop off,” David says. Once again Howie Transport helped with the logistics, another company that sees these bale drops as an important cause. The local farmers are really appreciative of the help that is coming from the metropolitan areas and show incredible gratitude of organisations helping out where we can, David says. ■
HIGH BAY WAREHOUSES High-bay warehouse technology for: • optimal space utilisation • high productivity • increased safety • less forklift trucks • reduced energy for temperature controlled environments ssi-schaefer.com
MHD COVER STORY
LEADING BY
INNOVATION Jungheinrich Australia has invested in 50 new service vans.
MHD catches up with Grant Stewart, Sales and Marketing Director at Jungheinrich Australia to find out why the fast-growing forklift provider is committed to putting innovation first.
N
TP Forklifts has been the exclusive partner for Jungheinrich products in Australia since 2008 and in 2015, Jungheinrich acquired NTP Forklifts. What was once a small privatelyowned local company now has the backing and support of an international organisation with revenue of nearly €3.8 billion in the last financial year. According to Grant Stewart, Jungheinrich Australia could always offer the high-quality Jungheinrich forklifts but struggled to pair the product with the standard of customer
16 | MHD SEPTEMBER / OCTOBER 2019
service expected of one of the world’s leading brands. “Jungheinrich is a superior European provider, and their forklifts are top of the range. But with that there is an expectation to give a service that matches the product. However, NTP Forklifts Australia being a small private company just couldn’t match the service offering that some of the other big players could offer,” Grant says. Grant joined Jungheinrich Australia two years after the acquisition happened and was tasked with transforming the organisation to
function like a corporate entity, with all the infrastructure and technology that is needed to offer a high-level of support, advice and service. “We recently engaged an independent consultancy to survey our customers. We very quickly found out that customers were happy with the product, but not at all with the service,” Grant says. For Grant, this discovery resulted in a huge overhaul for Jungheinrich Australia, starting with the branding. “The service levels were not of a standard expected by Jungheinrich. Customers would receive a superior
MHD COVER STORY
product but if they needed service or support the standard just wasn’t there. The survey revealed that most of the customers deemed the service ‘worse than we could have anticipated’. But this jolted us into action,” he says.
INVESTING TO SERVE Jungheinrich Australia has been investing heavily in improving the levels of service for its customers. This includes an investment in 50 new service vans, as well as highlyskilled technicians to go with them. “We bought 50 vans in the space of two to three months. While this is an enormous burden of cost, we are absolutely dedicated to giving the standard of service that is expected,” Grant says. Additional investments include holding $7.5 million in spare parts locally. “There is an expectation that we have those parts, so we have doubled our spare parts holdings. We can now offer an overnight delivery from Singapore,” Grant says. Further investments have been made locally too, with a new 13,000 sqm site in Sydney. “This site is almost double the size of our previous Granville facility. I invite anyone to come and have a look. We have spare parts, demonstrations of new products, workshops and even a model warehouse,” Grant says. This will also be followed with similar facilities being built in Melbourne and Brisbane in the coming months.
joining Jungheinrich was to “finish his career on top”, he says. “When I started in this industry in 1986, there wasn’t much change for many years. The market was the same. We would go out and offer the same truck as every other competitor. But Jungheinrich is so far ahead of the market,” Grant says. Grant says that many forklift operators here in Australia would engage in automation, technology and innovation but they would often have to take customers to a headquarters in Europe or the US to demonstrate these products. However, with Jungheinrich they have this technology on hand here in Australia to demonstrate to clients that they are committed to this market. “We are heavily invested in technology – automated guided vehicles (AGVs) and our Lithium-Ion offerings are leading the way in this arena,” Grant says. Historically, the Australian market has been slow to offer this kind of technology, Grant says. “There are so many benefits to Lithium-Ion technology. Without even considering the savings on labour costs or OH&S benefits. There are also savings that cover space needed to store spare batteries. With a truck now being able to work three shifts on one charge, you just don’t need that kind of storage space anymore,” Grant says.
“
We send a number of people to Singapore for training regularly and want to make sure that everyone is up to speed with the global standard of Jungheinrich.
”
TALENT To support the growth and development in Australia, Grant is very aware that the best talent has to be on the team. “We have an extensive training process for our technicians. We have the best industry guys across our service and sales areas,” he says. This includes bringing talent in from across the global Jungheinrich brand. “We send a number of people to Singapore for training regularly and want to make sure that everyone is up to speed with the global standard of Jungheinrich,” Grant says. Grant sees many opportunities at Jungheinrich Australia for those who are looking to grow. “We are looking for the best people, across our service, sales and admin teams. We want the industry best so we urge anyone who wants to join this growth phase to get in touch,” he says. With more than 30 years in the forklift industry, Grant has seen some major developments. But his main motivator for
Grant Stewart (left) joined Jungheinrich two years ago.
MHD SEPTEMBER / OCTOBER 2019 | 17
MHD COVER STORY
“
A traditional battery may last three or four years, but a Lithium-Ion battery can last seven or eight years in this capacity and then a further four or five in solar housing or building.
”
Jungheinrich is heavily investing in new technology. There are additional environmental benefits to this kind of truck. “A traditional battery may last three or four years, but a LithiumIon battery can last seven or eight years in this capacity and then a further four or five in solar housing or building,” Grant says.
MARKET-SHARE Jungheinrich are on a global growth trajectory, and this is also mirrored in Australia. “Our goal is to reach nearly 10 per cent of the market share. We’re number three or four in the market,” Grant says. In June alone, Jungheinrich Australia sold more than 600 units and Grant doesn’t see any signs of this level of growth slowing down. Jungheinrich has some major businesses on-board here in Australia, including some high value clients such as Coca-Cola and Woolworths. Jungheinrich Australia also provide
Justin Foster, Inventory Manager at Hello Fresh.
18 | MHD SEPTEMBER / OCTOBER 2019
forklifts for the entire Hello Fresh operation in Australia. “E-commerce organisations are very much concerned with efficiency and speed. HelloFresh were interested in our offering because it is so quick and we offer a long battery life and fast charge time. This partnership worked well due to the synergies between the two companies. They are a German business and they are on a huge growth trajectory like us, so we just got each other,” Grant says. There are also plans later this year to diversify the offering and to work with customers to offer an intralogistics solution, something that Jungheinrich is focused on in Europe. “In November this year we will begin to offer our intralogistics solutions and mirror our European offering. We will be a one stop shop for all things materials handling. We’ve transferred one of our directors from Europe to the head office here in Adelaide to start offering this level of service,” Grant says. Jungheinrich recently worked with Toll on the Toll City site in Singapore to offer a complete intralogistics solution. “We did the consultancy, the racking, the trucks, the WMS, the technology, everything was done through Jungheinrich, and this is the level that we will be bringing to the Australian market,” Grant says. Working for Jungheinrich Australia has given Grant the opportunity to work for an organisation that is leading by innovation, and not reputation, he says. “I love the opportunities that come from working for a large corporate entity – to be able to offer best practice, expert consultancy and high-quality trucks is really motivating at this stage in my career,” Grant says. ■
MHD COVER STORY
HOW HELLO FRESH KEEPS ITS WAREHOUSE MOVING As a fast-growing business with a focus on materials handling efficiency, Hello Fresh needs to be able to rely on its forklifts. Its fleet of rental trucks from Jungheinrich Australia fit this bill perfectly. Combining cutting-edge technology with industry leading service, they allow Hello Fresh to get on with the job of revolutionising the food industry. Established in Germany 2011 and now delivering over 21 million meals annually, Hello Fresh is changing the way the world buys and prepares food. Now with a presence in 11 countries including Australia, the company is on a mission to take the hassle out of making healthy, fresh tasty meals at home. With distribution centres in Perth and Sydney, its local arm is on a rapid growth trajectory. To cater for its ever-increasing customer base, it is preparing to expand its facility at Pemulwuy in Western Sydney, which even now handles around a million items at any given time. As a food delivery business, the efficiency of its logistics and materials handing operations will continue to play key roles in its future success.
THE FLEXIBILITY TO GROW
According to Justin Foster, Hello Fresh’s Inventory Manager, rather than purchasing its own fleet of forklifts and reach trucks, Hello Fresh chose to rent its equipment through Jungheinrich Australia. Currently its fleet includes an AM 22 hand pallet truck, an EJE 116n electric pallet truck, an ERE 120n ride-on pallet truck, an EFG 216kn electric counterbalance truck, an ETV 114n electric reach truck, and an ETR 335d double-deep reach truck. “In 2017, when we started working with Jungheinrich Australia, our site here in Sydney had just been built and our operations were significantly different to what we see today. For one thing, we were doing only 20 per cent of the work we currently handle,” Justin says. “But on top of that, the way we use our equipment has evolved. For example, while we started with the intention of only using counterbalances outside and higher reachers inside, we
now do the opposite. Over time, we found that this suited us better.” According to Justin, the very fact Hello Fresh rents all its equipment has made these types of changes possible. “It has meant we have never been tied down. Our operations are agile, and we can increase the size of our fleet as the need arises. Regardless of whether it’s for short or longer-term leases, Jungheinrich Australia can generally supply us a vehicle within two weeks,” he says.
JUNGHEINRICH SERVICE AND PARTS CAPABILITY
Singling out Martin Strogilakis, one of Jungheinrich Australia’s, Key Account Managers for special mention, Justin praised the quality of service he has received from the company. “Before establishing the relationship, we were looking for a supplier that believed in Hello Fresh and didn’t see us as a small client; somebody who was willing and prepared to grow with us and treat us as a major account. That’s why we chose Jungheinrich. And that’s what they have delivered us,” Justin says. “If we have a problem, I’ll send an email to Martin knowing that I’ll have a reply within an hour. Then generally on the same day, or at the latest the next day, I’ll have a tech on site doing everything possible to keep
our operations moving.” With its Service and Parts operations centralised at its National Distribution Centre in Sydney, Jungheinrich Australia can ensure parts delivery is as fast as possible. And, in cases where the part needed is not available locally, they are able to call on their international parts network. “Their communication and responsiveness have been key features of our relationship. To me, this type of service goes to show that Jungheinrich values Hello Fresh as a client. As I mentioned, that is exactly what we were looking for when we first considered working with them,” Justin concludes.
Hello Fresh chose to rent its equipment through Jungheinrich Australia.
MHD SEPTEMBER / OCTOBER 2019 | 19
MHD SUPPLY CHAIN
FLEXIBILITY IS THE NEW BLACK:
PROMOTING SUPPLY CHAIN SOLUTION UNITY Four supply chain providers have formed an alliance to be more responsive to consumer needs. MHD finds out more about this powerful proposition.
T
he customers supporting the Australian supply chain are more adaptable than ever. A ‘right here, right now’ mindset means they often expect reliable goods availability and fast delivery, Nishan Wijemanne, CEO at Cohesio says. “Mobile technology allows consumers to order a stock item from anywhere at any time. The advent of e-commerce makes it possible for someone to pay without even reaching into their wallet,” he says. Nishan asks why this age of unparalleled digital flexibility, are retail chains, warehousing groups and third-party logistics businesses not reacting fast enough? “Flexibility in the supply chain is critical - without a more versatile approach, overseas competition and the unceasing march of technology will overtake the industry. The vertical approach to enterprise partnerships, dealing with each business along the supply chain in isolation one-byone, simply cannot serve modern
20 | MHD SEPTEMBER / OCTOBER 2019
customers’ needs,” he says. According to Nishan, the bestsuited enterprise model to meet these demands is the flexible partnership – a dynamic alliance of best-in-class businesses united by the common goal of total consumer satisfaction.
ASSEMBLING A SUPPLY CHAIN DREAM TEAM An essay published in the The Asian Journal of Shipping about the value of collaboration in logistics offered startling insight into how the warehousing industry’s competitiveness is restricting wider opportunities. Of the 32 interviewees, 70 per cent claimed the sector’s cutthroat nature feeds into its low financial returns. “Siloing specialist knowledge away from the wider market only weakens the Australian warehousing sector as a whole. Strength comes in unity, not division,” Nishan says. That’s where Cohesio sees an
opportunity for a more flexible, collaborative approach to taking supply chain solutions to the market. “No business can stand truly alone as an expert in every field - leveraging the knowledge of others makes an organisation stronger in the long run, not weaker,” Nishan says. With this in mind, Cohesio decided to assemble a team of enterprise collaborators in a full service alliance. ‘‘It baffles me that no one has tried a flexible, collaborative working approach like this before,’’ Nishan says. ‘‘I want Cohesio to be known as innovators at the forefront of our industry. With the expertise and technology of leading names in the supply chain, we can all learn from one another and develop a truly comprehensive solution for customers.’’ Associate Director for International Sales in Australia and New Zealand Jamie Sterling echoes this excitement, ‘‘HighJump’s
MHD SUPPLY CHAIN (Körber Logistics Systems) work with Cohesio started as a legacy partnership. However, once we saw the potential this alliance could have for improving our service in the Australian market, the relationship quickly took on a dynamism of its own,” he says. “I’ve been in the industry for a very long time, and I’ve never seen anything like this before,’’ Darren O’Connor, Cohesio’s Director of Operations says. ‘‘Our long-standing relationship with Honeywell voice and mobile solutions is well known, but bringing Geek+ robotics and HighJump’s (Körber Logistics Systems) warehouse management software into the mix means we can offer a level of service Australia has never seen in one place.’’
DEVELOPING UNITING, CUSTOMER-FOCUSED PROCESSES “We have all of the technology and specialist knowledge required to develop a truly flexible supply chain service – now all we need is the underlying collaborative processes to support our customer-focused aims. This isn’t as easy as it sounds – many enterprise partnerships fail in the early stages as a result of breakdowns in communication,” Nishan says.
Lukily for Cohesio, Darren O’Connor, Director of Operations lengthy tenure in the logistics/IT space means process is his area of expertise. ‘‘Scaling operations is crucial in the modern supply chain. What suits customers today may not suit them tomorrow, so your processes need to be flexible and customer-focused,’’ Darren says. ‘‘Managing the end-delivery of client projects is something I have done in roles throughout my career it’s what I was brought into Cohesio to do. Aligning our objectives with those of the partnership means getting us all on the same page to achieve better customer outcomes.’’ Jamie agrees with this sentiment, ‘‘The end goal here is, of course, finding the best customer solution. In getting there, we want to make sure all communication channels are streamlined for the clearest processes possible.’’ The end goal is strength through collaboration, while each business remains distinct. And while the strategic union is still in its infancy, Darren, Jamie and others across the partnership are motivated to make this enterprise alliance a powerful proposition for the market, Nishan says.
Cohesio is calling for a more flexible and collaborative approach.
ONE YEAR, FIVE YEARS AND BEYOND: HOW THIS ALLIANCE WILL DISRUPT THE SUPPLY CHAIN ‘‘The first year is about small steps. What’s important for us is getting our voice heard, loud and proud,’’ Nishan says. ‘‘We are expecting firm competition for different parts of our supply chain solutions. The national AMR market will become more challenging in the coming year because of an influx of smaller providers. But the level of partnership between Cohesio and Geek+, as well as our localised support network across Australia and New Zealand, make it a compelling proposition. Having the comfort and peace of mind that there is a local, focused support infrastructure to back deployment post-implementation is just what many businesses need. Further down the track, this unique approach to enterprise collaboration will see Cohesio & Co. truly stand out on in the Asia-Pacific market. ‘‘I simply cannot see anyone else in the market having the processes or people to replicate what we have with Honeywell, Geek+ and HighJump (Körber Logistics Systems) in the next five years. I think our adaptability and broad range of skill sets will keep us as a standout name for a long time to come,’’ Nishan says. There is a bright future ahead for flexibility in the supply chain. Twothirds of respondents to the report on collaboration in Australian logistics expect to see an increase in the number of flexible partnerships within the industry over the next decade. Being more responsive to consumer needs and adaptable in the suite of supply chain services you offer will set you up as a future market leader, Nishan says. In addition, he thinks this will only work with the right processes and people in place to build on the links between your business and enterprise partners. “Building these relationships has been the real win for Cohesio. The opportunity to work with the most advanced supply chain businesses will help us to deliver perfection for the customer,” Nishan says. ■ MHD SEPTEMBER / OCTOBER 2019 | 21
MHD SUPPLY CHAIN
WHO ARE THE LEADING SUPPLY CHAIN SOLUTIONS PROVIDERS THAT HAVE HELPED COINED THE TERM FLEXIBILITY IS THE NEW BLACK? Honeywell: Mobile and voice-powered excellence
Honeywell is a global technology solutions provider with a major Asia-Pacific presence, they are also a valued partner of Cohesio’s in designing and integrating state-of-the-art mobile and voice-powered warehouse management devices. “Our unique collaboration with Honeywell means we are already engaged in several pilots with an Android-driven, voice-workflow application. Our ignito platform has been the driving force here. Android Voice is going to make voice technology more accessible, scalable and flexible. We can voice-enable any workflow just by using an Android mobile computing device,’’ Nishan says. Mobile equipment is nothing new in the logistics sector. However, what Honeywell offers in conjunction with Cohesio Group is a scalable solution comprised of hardware and software, Nishan says. “The key to the success of this system is the ease of integration into back-end WMS and ERP systems. End-users have been benefiting from voice solutions for decades now. However, this offering has never been as scalable as right now. The software-as-a-service-based voice solution compliments clients’ existing android mobility fleets. This operations-ready solution is truly game changing.”
Geek+: Advanced supply chain AMR hardware
A 2018 Supply Chain & Logistics Association of Australia report found that 39 per cent of operators considered robotics as the single technological asset to have the biggest impact on the sector in the next decade. Forget about the 10 years to come – Geek+ robotics solutions are
already storming the market. Cohesio’s collaboration with the Beijing-based enterprise began in early 2018 as they worked together on their existing solution to tailor it for the Australian and New Zealand markets. The solution now addresses some of the most pressing space- and time-efficiency problems in warehouses today. ‘‘Warehouse managers typically have to deal with three issues - limited space, slow picking and packing, and order inaccuracies through human error. The Geek+ robots are the answer,’’ Nishan says. The AMR’s (Automated Mobile Robots) can travel roughly 100 metres per minute, with precision navigation technology helping them avoid obstacles, and pick and transport stock, to 99.8% accuracy. Cohesio’s initial estimates suggest savings of up to 90 per cent of floor space by re-organising storage for exclusive access by AMR’s.
HighJump (Körber Logistics Systems): Dedicated software expertise
Software provider HighJump (Körber Logistics Systems) was the final puzzle piece, uniting the advanced array of supply chain technology available to the strategic alliance with IT intelligence. ‘‘In a nutshell, we are the smarts beyond the technology,’’ says Jamie. ‘‘Our software engineers design the operating programs needed for warehouse management systems to work effectively and process stock distribution data.’’ HighJump (Körber Logistics Systems) works with some of the leading names in global retail and warehousing. The business saw aligning with Cohesio as an opportunity to develop their names further in Australia and New Zealand while learning more about the process side of the sector. ‘‘Cohesio has an excellent client-facing reputation and an enterprise culture directly aligned with our own. Not leveraging their expertise and customer=focused approach would be a disservice to our own market, and our strategic partnership gives us a real edge over competitors,’’ Jamie says.
Cohesio: Warehouse management guidance
Siloing specialist knowledge away from the wider market only weakens the sector, Nishan says.
22 | MHD SEPTEMBER / OCTOBER 2019
The Cohesio team is the human side of how to best utilise and integrate these advanced solutions into distribution centre operations. Supply chain management is important when tying together the hard work and expertise of our technology partners, Nishan says. “Our supply chain consultants analyse your enterprise processes to determine a system architecture tailor made for you. From there, we bring your critical information to our alliance team members to collaborate on designing and assembling the technologies that suit your unique requirements.” The projects Cohesio has worked on across the AsiaPacific supply chain sector are all marked by one uniting factor - their diligent approach to collaboration in order to best help the customer. “It’s in our DNA to collaborate where appropriate to create,” Nishan says
MHD MATERIALS HANDLING
Oxford Cold Storage has implemented a number of AGVs into an existing warehouse.
COOL SOLUTIONS Cost pressures and tighter margins prompted Oxford Cold Storage to explore more efficient solutions in the warehouse.
O
xford Cold Storage was established in 1975, initially to serve neighbouring meat producers, with the first freezer erected adjacent to the local poultry processing plant, Cambridge Poultry Distributors. Over the years, the business has evolved to offer services to processed food manufacturers, food importers and exporters and pharmaceutical companies. Management has developed systems and invested heavily in technology in order to provide the best service possible, Mark Fleiszig, Chief Information Officer at Oxford Cold Storage says.
INVESTING IN AGVS The decision to trial Dematic’s Automatic Guided Vehicles (AGVs) stemmed from the reality of a constant stream of cost pressures. With retailers dropping prices for their consumers, flow-on austerity down the chain meant tighter margins for 3PL companies like Oxford Cold Storage. “AGVs became an attractive option when we realised the long-term savings we could gain. They can operate around the clock and run at night with the lights out in the 24 | MHD SEPTEMBER / OCTOBER 2019
freezer warehouse, which has a temperature of minus 25 degrees celsius. The addition of AGVs in the warehouse meant a reduction in occupational health and safety concerns as well as eliminating human error,” Mark says. With 175,000 pallets, a million cubic metres of storage, and a workforce of 400-500, Oxford Cold Storage plans to roll out AGVs in stages, with the aim of eventually using them to handle 90 per cent of its freight. “We have five AGVs currently being tested, they will replace four manual forklifts and operate in a 7,000-pallet fridge. But moving to AGVs doesn’t mean sacrificing the problem-solving abilities of human operators. We’re hoping to replicate the flexibility we have now with the manual warehouse, but with automation,” Mark says.
THE SET-UP Oxford Cold Storage chose to implement AGVs into an existing warehouse rather than build a fully automated warehouse, which, while potentially saving them millions, raised a few challenges, Mark says. In order to ensure the warehouse was suitable for AGVs every inch of the work space
MHD MATERIALS HANDLING
had to be surveyed, mapped and digitised. The AGVs used in Oxford’s warehouse work by laser guidance. A laser scanner on top of the AGV measures angles and distances to reflectors mounted on the walls and on the racking. The vehicle then triangulates where it is in the warehouse and moves to its programmed position accordingly, with an accuracy of +/- 5.0 mm. There are strict requirements for the cleanliness and condition of the floors and racking when AGVs are in use. The AGVs will transport standard pallets of 1,165 mm x 1,165 mm, with a maximum pallet weight (including pallet) of 1,300 kg. The pallets need to be undamaged and free of any protruding nails, rubbish and overhang, to avoid confusing the AGV sensors. To check tolerances and streamline the operation, a production line system will be implemented, where pallets will be offloaded from the truck by manual forklift, then taken to a conveyor to be scanned and profiled. The variability of stock can present some added complications. “Being a 3PL, we have little control over what we receive. We just have to deal with it. And the way we deal with it now in a manual operation will need to be adapted when using the AGVs,” Mark says. Once accepted, the pallets are labelled – they go to the main chamber, where the AGVs pick them and take them to the racking. Programming the AGVs to do what you want them to do is one of the biggest tasks. Unlike many other companies, Oxford Cold Storage runs its own warehouse management software, rather than a thirdparty system. So, establishing clear lines of communications between the Oxford Cold Storage WMS and the AGVs software has been an essential part of getting the whole system running. “The idea is to drive the systems through the in-house WMS only, to maintain consistency and avoid having to re-train operators on using new software. The conveyor system interfaces with the AGV system, then you’ve got our WMS that interfaces with both systems,” Mark says.
“
The addition of AGVs in the warehouse meant a reduction in occupational health and safety concerns as well as eliminating human error.
”
There are three AC motors: drive, steer and lift. The AC drives convert DC power from the battery to three-phase AC power. The AGV controller manages all major functionality. The batteries are special purpose lead gel, capable of receiving a high current charge and sealed for life. The vehicle will take itself to its charger when it needs to. The charger consists of a charge plate on the floor, where it will connect with the vehiclemounted charge shoe. There is a manual control device on every AGV, allowing it to be taken out of service for maintenance, or whenever manual operation may be required. A touch screen operator control panel provides information such as battery status, navigation and position status, fault identification, speed settings.
AN EXCITING TIME FOR AUTOMATED LOGISTICS Once up and running, the five AGVs in this freezer warehouse will move around 500 pallets per day in a single shift operation, eventually increasing to 4,000 pallets in a 24-hour period. “By stress testing the system in an isolated environment that won’t cause disruptions to usual business operations, we hope to learn exactly what AGVs are capable of, especially in a freezer environment, and what the future holds for automated logistic solutions,” Mark concludes. ■
INTRODUCING ROBOTS TO THE WAREHOUSE The model of the five AGVs being trialled is called the HR-1300-94 SSRF, and they are designed specifically for the requirements of the Oxford Cold Storage warehouse. The AGVs are 3,825mm high, 2,560mm long, weigh a massive 5,800kg each and can lift to a height of more than nine metres.
The AGVs have been designed specifically for the requirements of Oxford Cold Storage.
MHD SEPTEMBER / OCTOBER 2019 | 25
MHD MEGATRANS
COLLABORATING ACROSS THE SUPPLY CHAIN Flinders Port Holdings has been using technology to enable greater collaboration across the supply chain. MHD finds out more.
F
linders Port Holdings is a privately-owned port, logistics and container terminal services group based in the seaport suburb of South Australia’s state capital, Adelaide. The group operates seven ports, located at Port Adelaide, Port Lincoln, Port Pirie, Thevenard, Port Giles, Wallaroo and Klein Point and is the parent company of Flinders Ports, Flinders Logistics and Flinders Adelaide Container terminal – the only container terminal facility in South Australia. The Port has a total workforce of more than 590 employees, and was listed number 59 on the South Australian Business Index of top 100 companies. Across all of its ports, the business handles a diverse range of products ranging from grain, to metal ores to fully manufactured cars. A crucial aspect of the supply chain, ports work with all sectors of the logistics spectrum. From the trucks that enter the port, to the containers that leave and arrive on cargo ships, to the freight trains that move goods across Australia, collaboration is essential for a port to operate effectively. At Flinders Port Holdings the organisation has been utilising technology across its core business 26 | MHD SEPTEMBER / OCTOBER 2019
to better enable cross-collaboration, Andrew Pellizzari, General Manager Group Development, Flinders Port Holdings says. “We collaborate across various sectors in the supply chain through a number of real time message systems, such as direct Electronic Data Interchange messaging, web services and our operational website. Our platform provides visibility across all of our transactional partners – including shipping lines, packers, exporters and transport companies,” Andrew says. Over the last decade, the role of technology and data within supply chain and logistics has accelerated and Andrew says this is set to continue. “Technology, and specifically digitisation of data, means that cargo can be moved through different modes, including ports, much quicker and at a greater volume,” he says. One area that technology has been instrumental in the logistics and warehousing space is through Justin-time inventory management. “Technology has enabled a new, dynamic approach to storing and receiving goods. Across the sector technology will continue to underpin supply chain continuity, especially where multiple modes are involved,” Andrew says.
Andrew Pellizzari, General Manager Group Development, Flinders Port Holdings. While technology places an important role in cross-sector collaboration, Andrew and Flinders Port Holdings also recognise the need to meet and network face to face. This is evident in the organisation’s recent commitment to exhibit at MEGATRANS2020. “MEGATRANS is an important forum, which enables us to communicate with the logistics industry and keep up to date with key trends. It is also a valuable networking opportunity for us to engage directly with our supply chain partners,” Andrew says. For more information or to exhibit, visit: www.megatrans.com.au or contact Danny Hernandez: danny.hernandez@ primecreative.com.au or +61 3690 8766 ■
THE COOLEST SOLUTION Ask us. +61 2 9486 5555 info.anz@dematic.com www.dematic.com.au
Oxford Cold Storage isn’t alone in experiencing a constant stream of cost pressures. With retailers dropping prices for their consumers, flow-on austerity down the chain means tighter margins for distribution companies. For Oxford Cold Storage, implementing a fleet of Automated Guided Vehicles (AGVs) from Dematic offered long-term savings. Able to operate around the clock and run overnight with the lights out, the addition of AGVs in the freezer warehouse meant a reduction in OH&S issues and elimination of human error. Plus, the increase in operational throughput provided by switching to automation allowed the company to remain in their existing warehouse rather than build a new facility, potentially providing savings in the millions. Learn more at dematic.com.au/oxford-cs.
OptimiseYour YourSupply SupplyChain Chain WeWe Optimise Robotics
|
Order Fulfilment
|
Automated Storage
|
AGVs
|
Software & IT
|
Conveyors & Sortation
|
Service & Support
INDUSTRY LEADING SOLUTIONS VALUE BEYOND MACHINE INNOVATIVE TECHNOLOGY EXPERT SERVICE
SINCE
1976
$11M
100+ 40+
OVER 40 YRS IN AUSTRALIA & NEW ZEALAND CONTINUING THE LEGACY OF CREATING THE WORLD’S GREATEST CLEANING SOLUTIONS
INVENTORY TO RESPOND QUICKER TO CUSTOMERS’ NEEDS FOR MACHINES AND PARTS
EMPLOYEES ACROSS AUSTRALIA AND NEW ZEALAND
MORE THAN 40 SERVICE VEHICLES ON THE ROAD EVERY DAY FOR YOUR SERVICE REQUIREMENTS
3% OF OUR ANNUAL REVENUE IS INVESTED IN OUR R&D AND PRODUCT QUALITY
Creating a cleaner, safer, healthier world. AU.TENNANTCO.COM
1800 226 843
MHD MATERIALS HANDLING
Trelleborg’s premium range of tyres features an orange line that reveals itself when there is 100 hours of usage left.
Some solid/resilient forklift tyres are either being replaced too early or too late, Paul Hansen at Trelleborg Wheel Systems Australia says. But what if there was a 100 per cent accurate way to indicate when they need replacing?
TAKING SAFETY SERIOUSLY F
orklifts are fundamental in the logistics and warehouse environment, one of the most utilised pieces of equipment, they are a powerful tool that aid the movement of and storage of goods efficiently and safely. However, one of the industry’s most critical questions is knowing when a solid/resilient forklift tyre has reached the manufacturer’s maximum wear limit and needs to be replaced. “Not knowing exactly when these tyres need to be replaced has been costing the industry thousands of dollars in replacing tyres that could still have usable of tread rubber on them,” Paul Hansen, Sales Director, Trelleborg Wheel Systems Australia says. Solid/resilient tyres are often replaced with up to 25 per cent of their tread rubber remaining simply because the tread pattern has been worn off. Once the tread disappears, there is usually an argument between different departments regarding when it
should be replaced. “Safety have their agenda of being as safe and compliant as possible and operations need to make sure everything is running as efficiently and cost-effectively as possible,” Paul says. This ambiguity leads to customers replacing tyres before the manufacturer’s maximum wear point is reached, effecting the total cost of ownership of the tyre. This has a number of issues, firstly there is the cost of replacing tyres too early when there are more operational hours of use to be gained, secondly there is the environmental impact of putting a tyre into landfill or similar when it could still be used. Thirdly there is the very serious safety issue of keeping tyres on the forklift after they should be replaced. Trelleborg Wheel Systems has developed a solution to completely remove the ambiguity around when a solid/resilient forklift tyre needs to be replaced. The ‘Pit Stop Line’, incorporated
into Trelleborg’s premium range of solid/resilient tyres in 2014, features a highly visible orange line that is embedded into the tyre. The line reveals itself around the surface of the tyre to let operators know that it should be replaced within the 100 hours of usage, eliminating the risk of replacing tyres too early or too late. “We wanted to ensure customers had a visual indication of when the tyre was approaching its maximum wear life, with enough time to program in the replacement so as to reduce downtime to a minimum,” Paul says. “This ensures that our customers have received maximum value for their money.” Since launching the solution here in Australia Paul says the reception has been fantastic. “Trelleborg tyres manufactured with the Pit Stop Line are a must have for any organisation that takes safety seriously and wants to realise the lowest operating costs when it comes to tyres on their material handling equipment.” ■ MHD SEPTEMBER / OCTOBER 2019 | 29
MHD MATERIALS HANDLING
MOBILE TECHNOLOGY IN THE WAREHOUSE
Warehouse workers are wasting a significant amount of hours moving back and forth to printers and computers. Keith Bland at Datanet presents a new solution.
T
he average warehouse employee wastes seven weeks every year with unnecessary motion. “It’s easy to underestimate how much time is spent walking back and forth to printers, computers and other equipment. Ten seconds here or there equates to a costly practice over the course of a year,” Keith Bland, Director of Sales at Datanet says. According to Keith, eliminating just eight minutes of unnecessary walking per hour for each worker, can save thousands of dollars. In a warehouse environment printing stations are often placed around the outside of a warehouse, where the power and Ethernet supply is.
More recently workstations have moved closer to the activity by putting cable and power through the columns of the warehouse. However, this is still nowhere near as efficient as it can be, Keith says. “Organisations have recognised that having workstations away from the activity is reducing efficiency and productivity. In recognition of this there’s been a few solutions, firstly moving the workstation closer to say a column that supports the roof. But this still isn’t close enough to the activity. Secondly, some organisations introduced Sealed Lead Acid (SLA) batteries solutions to make the workstation mobile. While the SLA battery creates a mobile workstation, it is usually a big heavy battery and needs to be charged for a significant time.” Datanet, an Enterprise Mobility solution provider, is bringing a new mobile workstation product to Australia. “We know that this wasted time in walking from a print station and back to the area of activity is costing logistics organisations a significant amount of money so we knew there needed to be a better solution available in the market,” Keith says. The Newcastle Systems Mobile Picking Cart is the first of its kind. It uses the PowerSwap Nucleus lithium battery which provides eight to In a warehouse, printing stations should be as close to 12 hours of power time. the picking activity as possible, Keith Bland says. When one charge is 30 | MHD SEPTEMBER / OCTOBER 2019
depleted, the battery can be swapped with a fully charged one in a matter of seconds. “This is the first swappable lithium power system on the market for industrial environments. The battery is light and easy to remove,” Keith says. The battery weighs as little five kgs and operates a plug and play system. “There is no tools, heavy lifting or maintenance personnel required for battery changes,” Keith explains. There are also added safety benefits to being able to have the printing stations where the activity is taking place. “It’s better to limit workers having to move around the warehouse, particularly with forklifts and as automated guided vehicles are more commonly found. If you can limit workers interaction with these kinds of vehicles then you can create a safer environment.” According to Keith, this kind of technology will be well-received in the Australian logistics market and Datanet has already taken orders from industry leading companies including Amazon, Roy Hill, Honda and ASICS. The feedback from Amazon so far has been great, with a spokesperson stating that the portable power enables them to take workstations to any area within the facility while increasing workflow, productivity and offering greater flexibility in the process. In an environment like Amazon, where peak times require a 24/7 operation knowing that the workstation is flexible and will be able to offer a full shift of power is crucial to efficiency, Keith says. The mobile picking carts are manufactured in the US by Newcastle Systems and Datanet will be the exclusive distribution partner for the products here in Australia. ■
BRING YOUR SUPPLY CHAIN LOGISTICS TOGETHER
As a market leader in major global trade lanes, C.H. Robinson’s customisable suite of global logistics services and technology solutions serve all your transportation needs, under one roof.
Discover how our experience and scale create uniquely better outcomes at www.chrobinson.com
Š 2019 C.H. Robinson Worldwide, Inc. All rights reserved.
October 31st The Glasshouse Melbourne
Australia’s Leading Supply Chain Technology Networking and Thought Leadership Exchange. 150+ Supply Chain and Logistics Professionals Speakers include: and many more Anthony Laye Mentalist
Amanda Stevens Consumer Futurist
Eddie Capel President and CEO. Manhattan Associates.
Dan Gregory Behavioural Strategist
Technology Sessions include: Retail Fulfilment Technology / Warehouse Robotics and Automation / WES vs WCS vs WMS / Order Management / Demand Forecasting and Inventory Optimisation / RFID / Android Handheld Technology / Voice Picking
MHD EVENTS
BEYOND EXPECTATIONS: MANHATTAN EXCHANGE 2019 Manhattan Associates will host its seventh annual Manhattan Exchange conference on 31 October at The Glasshouse in Melbourne.
T
his year’s event is set to build on the success of past events, with a fantastic line up of speakers and more than 150 retail, manufacturing, wholesale and logistics professionals from across Australia and New Zealand gathering to immerse themselves in the high pace world of commerce. At the event, industry leaders will share insights on the evolving world of multi-channel operations and its impact in B2C and B2B selling environments, both online and offline, with a deep focus on the ultimate customer experience and making an active impact on business’s enterprise. “The Manhattan Exchange event is designed to help traditional bricks and mortar retailers, pure-play e-commerce companies, and direct-to-consumer manufacturers maximise the efficiency of managing orders across multiple channels and fulfilling their customers’ increasingly complex needs,” Raghav Sibal, Manhattan Associates’ Managing Director for Australia and New Zealand says. Guests at the event will hear from a great range of thought leaders throughout the day, with Eddie Capel, President and CEO of Manhattan Associates, opening Manhattan Exchange with his vision of this year’s theme: ‘Beyond Expectations’. World leading mentalist, Anthony Laye, will act as the MC of the event. A dynamic, energetic and exciting speaker who engages, empowers and connects his audiences, Anthony uses his talent as a mentalist to share key business and mindset skills, and interacts with the
Manhattan Exchange will feature thought leadership and a number of break-out sessions. audience to demonstrate the importance and power of being conscious. The first keynote speaker at Exchange will be Amanda Stevens, Australia’s leading consumer futurist. Amanda will give organisations a peek into the future of consumers and provide powerful strategies for future proofing any business by creating epic customer experiences and building brand advocacy. Finishing off the day will be keynote speaker Dan Gregory, Co-Founder, President and CEO of The Impossible Institute™, a strategic think-tank that helps organisations make positive change and make change positive. A behavioural strategist, Dan works as a speaker, author, consultant, and social commentator, and is a regular on ABC TV’s ‘Gruen Transfer’. His passion is leadership strategy & influence – focusing on what inspires and drives people and communities. Manhattan Exchange 2019 guests will also hear about many of Manhattan’s latest solution innovations, with the event including a number of break out sessions for guests to join. Industry related break out sessions will cover the topics of retail store fulfilment technology including RFID, Order Management and Point of Sale solutions and
Warehouse logistics technology including WMS vs WES, Order Streaming and Demand Forecasting. Solutions-related break out sessions will include discussions around three Manhattan Active solutions: Active Supply Chain, Active Omni and Active Inventory. “The event has been a great success in past years, and this year will be no different. We are excited to celebrate with our customers, partners and industry leaders, share our latest solution innovations and hear from a great line up of guest speakers covering a variety of industry related topics, Raghav says. Registrations are complementary and open to Manhattan Associates customers and individuals working in supply chain, logistics, operations and IT related roles (consultants, vendors and service providers can only attend through sponsorship). Acceptance of registration is at discretion of Manhattan Associates. Sponsors of Manhattan Exchange 2019 include: Zebra Technologies, Dematic, Ivanti, SOTI, Shippit, Oracle, SATO and Gamma Solutions. Full details on Manhattan Exchange 2019 can be found at www.manh.com.au/ exchange. ■ MHD SEPTEMBER / OCTOBER 2019 | 33
MHD SUPPLY CHAIN
A SUPPLY CHAIN THAT WORKS FOR EVERYONE Leaders from across the freight and supply chain sector met to discuss the Victorian ports sector at the Victorian Transport Association’s annual Port Outlook seminar.
V
ictorian Transport Association’s (VTA) CEO Peter Anderson welcomed delegates at the event and presented the day as an opportunity for professionals from across the supply chain and logistics industry to stay in touch with the activities of the ports in Victoria. Peter encouraged everyone in the room to connect with each other and to find ways of collaborating. “In our industry, there is little room for error. Margins are being squeezed and we are all asking ourselves how can we move more with less? This is where we need to establish a supply chain that works for everyone, regardless of the
Melissa Horne, Victorian Minister for Ports, Freight and Public Transport.
34 | MHD SEPTEMBER / OCTOBER 2019
mode,” Peter said. Melissa Horne, Victorian Minister for Ports, Freight and Public Transport said that the State Government is “committed to change”. “Freight is a portfolio that this government takes very seriously. It affects everyone in the community. But we understand that there is disconnect between community and industry,” Melissa said. “The movement of freight powers our economy and provides 1000s of jobs but can so often be seen as a nuisance to the community,” she said. She spoke of the challenging dilemma that policy makers are presenting with when trying to support industry while at the same time managing the growth of the city. “Victoria is the nation’s freight hub and the Andrews Government is proud to give freight a vital place in cabinet. Melissa stressed a commitment to look at efficiencies that could be found in coastal shipping and a better use of rail to cope with the demand projected. “Currently 5,500 trucks visit the Port of Melbourne every day, that could reach 16,000 in this lease term. This is simply unsustainable,” Melissa said. Melissa spoke of the Port Rail Shuttle
and announced that for every $2 of private investment there will be $1 of public money available. “A better use of rail at Port of Melbourne is key to increasing capacity,” she said. Brendan Bourke, CEO at Port of Melbourne also spoke of collaboration and he presented figures that showed less growth than this time last year. “The figures at the Port reflect what’s happening more generally in the economy. Slow economic growth, low interest rates, drought conditions etc. Bulk grain was down 82.3 per cent for example,” Brendan said. However, he is not concerned with some decline in growth. “History shows you do have ups and downs but the long-term trend for the Port is very much upwards.” Brendan also spoke of interoperability and said that he is always looking outside the Port gates to find out how the supply chain can work more efficiently and closer together. Delegates attended a boat tour of the Port of Melbourne and heard from leading professionals in this sector including Mike Gallacher, CEO, Ports Australia and senior leaders from Victoria’s stevedores. ■
We source the most important link in your supply chain... People.
Impex Personnel. Your supply chain placement partners. Impex Personnel has almost 20 years of experience in the logistics and supply chain industry. So our Placement Specialists know supply chain inside out. And now, we are better placed, and more focused than ever to provide the candidates you need, with the skill-sets and experience you want. Our thorough understanding of your business requirements ensures we will only propose candidates who have the right skills and right fit for your needs and culture. Our commitment to proposing only the best and most suitable candidates and our desire to build long-term exclusive collaborations with our clients make us the perfect placement partners to fulfil your recruitment needs.
Sydney • Melbourne • Brisbane • Adelaide • Perth • Auckland • Christchurch
impexpersonnel.com
MHD MATERIALS HANDLING
RELIABLE COMMUNICATION In a fast-paced environment such as a warehouse, communication has to be quick and easy. Pilot Pen’s latest permanent market offers versatility, reliability and improved usability. A pen can be a very valuable tool in the warehouse.
I
n a logistics environment, workers are often required to move from one setting to another. A shift could start in the warehouse, but then to a packing area, to the head office and back to the warehouse. While technology and automation are shaping the way we carry out tasks, one valuable tool that is here to stay is the permanent marker, John Johnson at Pilot Pen says. When the environment is as fastpaced and crucial as a warehouse or production line, it’s important to have easy access to a communication tool that is easy to access and easy to use, whatever the environment. This is where Pilot Pen’s latest 36 | MHD SEPTEMBER / OCTOBER 2019
marker offering comes in. Pilot recognised a need for a higher quality, more reliable marker and developed the SCA 100 and 400 permanent markers with strong and versatile surface adhesion. “We’ve recently upped our game in the market space, and we’re really proud of our SCA 100 and 400 series offering. We think this is a great marker for industries like logistics where speed, reliability, quality and accuracy are key,” John says. The SCA 100 and 400 series feature the newly developed Controlled Surface Properties (CSP) ink. This is wear resistant and prevents the ink dispersing when it’s scratched. This
allows for a long-cap off performance. “You can use the pen to write on pretty much anything – cartons, glass, plastic, wood, metal, paper. It will even write over grease and oil,” John says. In addition, the pen can be left without the lid on for 24 hours and still be used. “We knew that for industries like logistics they need a more robust and reliable marker, and with the CSP ink we were able to develop a permanent marker that will continue to deliver even if the lid is left off for long periods of time,” John says. “A common issue with permanent markers in offices, factories and warehouses is that they are used and then left without a lid on, causing the pen to dry out,” John says. It’s also wear resistant, which means that the ink cannot be rubbed out and according to John it will not fade from excessive heat, light, water or cold. The markers also come in vibrant colours to ensure accurate visibility. Pilot Pen is a globally recognised Japanese writing instruments manufacturer. A household name, Pilot Pen is renowned for its quality and has been at the forefront of design and innovation. “We have been in this market previously, but we really wanted to offer a solution that would help businesses,” John says. Recently celebrating its 100th year of operation, John Johnson, Marketing Manager at Pilot Pen Australia believes that what sets Pilot apart from other writing instruments manufacturers is its genuine desire to create a product that people will value and the SCA 100 and 400 series shows commitment to that promise. ■
Powered Process Improvement
PowerSwap Nucleus® Lithium Power System ALL-IN-ONE NB Series Workstations
The Average Warehouse Employee
WASTES 7 WEEKS EVERY YEAR With Unnecessary Motion
Stand alone battery charging station Footprint: 16” W x 11 5/8” D x 11 1/2” H, Weight: 20 lbs.
The NB Series workstations with the PowerSwap Nucleus® lithium power system is the first of its kind designed for industrial environments. This rugged, yet lightweight unit provides quiet, seamless AC power for 8–12+ hours at a time. Once the battery charge is depleted, simply swap it with a fully charged one in a matter of seconds.
The First Swappable Lithium Power System for Industrial Environments 1300 328 263 | sales@datanet.com.au
www.datanet.com.au
MHD SUPPLY CHAIN
A FAMILY AFFAIR As Allied Express celebrates its 40th year of operation, MHD sits down with Michelle McDowell, Managing Director to find out more about its history and its future.
A
llied Express is one of the largest independently-owned courier, express freight and specialised logistics company in Australia. Boasting a client portfolio of some of the biggest names in retail, manufacturing and technology including Allied Express has just celebrated its 40th year of operation. With a commitment to finding the solution for each and every customer, Allied Express has always been at the forefront of innovation in the industry. This commitment to innovate has been a part of the business since day one, Michelle McDowell, Managing Director at Allied Express says. “My father started the business in 1978 and back then it started as a courier business. Our main business was delivering documents. However, soon after fax machines negated the need for a lot of these kinds of documents to be delivered by hand and we had to change the core of our business,” Michelle says. It was after this that Allied Express moved into the movement of goods. “Logistics will always be here. It gets disrupted often, and we have to execute things in different ways but products and materials are always going to be required to be moved from A to B,” she says. Michelle has been working at Allied Express for 27 years, and has seen some major changes in the industry. “Our customer has changed but along with that so have our business practices,” she says.
DRIVER FOR CHANGE A lot of the major innovations and evolution in the logistics space has been driven by the home delivery aspect of logistics, Michelle says. “How do you get a customer to stay at home and make that delivery first time?” she asks. For Michelle, it’s about communication with the customer. “Our customers are different. How we deliver for Foxtel is different to how we 38 | MHD SEPTEMBER / OCTOBER 2019
Michelle McDowell, Managing Director, Allied Express.
customer what those options entail. “Our whole business philosophy is about showing the different service and elements we can offer, and then building the right one for our customer – it’s the same with home delivery. You can choose what you want. If you want it Saturday afternoon then it costs this amount, if you want someone to come and install the item, then it costs this much extra and so on,” she says.
LONG-STANDING RELATIONSHIPS
deliver for Temple and Webster but we build a delivery strategy that works for them,” she says. Michelle recognises that the logistics provider is now part of the buying experience and with that comes a requirement to work closely with any client to create a good experience for the end consumer – one that mirrors the standard of customer service the retailer offers. The key to a successful delivery experience is setting realistic expectations, says Michelle. “With the surge in online shopping, regional Australia now has access to products and services they never had before. There is a very real challenge in serving regional Australia, but I think you need to set the expectations and ensure that you have regular communication with these customers so they are not disappointed or out of the loop,” Michelle says. Michelle considers the idea of free delivery unachievable and says that she usually advises her customers against it. “At the end of the day it costs to take product from A to B, so you’re paying for it somewhere,” she says. For Michelle, it’s more important to offer options and to explain to the
Something that permeates through the organisation, is long-standing relationships. This is found both in Allied Express’ customers and also its employees. “We’re the longest supplier relationship that LG has anywhere in the world in any category,” Michelle says with pride. “A business like that goes to tender every couple of years so we’re pretty proud of that.” Michelle attributes much of this kind of loyalty to the way that Allied Express does business. “We put a model in place that’s best for our customer, and we would never replicate that for their competitor, so we make sure we have diverse customers. But one area that this has really been able to help our customers is that they can learn from each other. We can cross use ideas to help all of our businesses offer the best delivery service,” she says. This loyalty is also found in the employees at Allied Express. “We have people still working here who were driving for us 40 years ago,” Michelle says. Logistic is a rough and tumble industry, Michelle says, but one that can offer a great career. At Allied Express, there is a strong company culture and many of the successes of the clients are communicated to all the drivers and workers who make that happen. ■
MORE VOICE, MORE CHOICE.
Every business is different. Flexibility and choice are key to growth and adapting to the ever-changing supply chain. Honeywell Voice Solutions has already helped over 1,000,000 workers improve their daily productivity. Whatever size your business is, we have a voice solution to help. Voice on Android or iOS devices with fast, simple integration and deployment or the upgraded A700x platform, running Linux with sensors to give deeper insights into your business. The choice is yours, the voice is ours! TALK TO US at HoneywellVoiceSolutions@honeywell.com or visit intelligrated.com/A700x.
Š 2019 Honeywell. All rights reserved.
MHD TECHNOLOGY
With product traceability becoming more important to industry, selecting the best method of product identification is increasingly difficult.
BREAKING BARCODE BARRIERS W
hile linear barcodes are still the most common method of identifying a product, they are very limited in the information they can contain. For this reason, 2D barcodes and RFID tagging solutions are becoming more popular, but what is the best solution for your application? Darryl Blackeby, Product Sales Manager at ifm efector presents the options available.
2D BARCODES Whilst most of us would be familiar with QR codes that typically contain URL information to link to a website, other 2D barcodes such as ECC200 Data Matrix Code, PDF-417 and Aztec code are also available. In particular, the ECC200 DMC is ideally suited for industrial applications due to its compact size, high data density and ability to be read with significant damage or soiling. In addition to the standard printing methods, ECC200 DMC can also be laser marked, electrolytic chemical etched or dot peened onto a surface. 2D barcodes require a camera-based code reader and therefore the code must be presented in a defined region within the cameras field of view. Reading ranges of up to two metres are possible depending on the code size and resolution, but typical reading ranges are less than 200mm. Being a camera-based system the lighting is 40 | MHD SEPTEMBER / OCTOBER 2019
also critical for consistent results. The ifm O2I Multicode Readers are capable of reading both 1D and 2D barcodes, as well as character recognition and verification. The code information can be transmitted via TCP/IP, Ethernet IP, Profinet or RS232, with other industrial Ethernet protocols also possible using the ifm AC14 Smart PLC as a gateway and a dedicated app. The latest O2I5xx Multicode Readers also offer unparalleled simplicity, with a one touch teach function to learn the code type, set up lighting exposure time and automatically focus the camera. A mobile phone app can be utilised to set the IP address and make other minor changes.
RFID SOLUTIONS RFID is common in many everyday applications such as toll collection, smart cards and livestock identification, and the uses in industry are growing rapidly. RFID technology is grouped into three main technologies – UHF, HF and LF depending on the operating frequency utilised. RFID systems offer the advantage over 2D barcodes in that the codes can be read when completely soiled, and independent of lighting. Information can also be written to the tags using the same devices that read the codes, meaning the tag data can be updated readily. Ultra High Frequency (UHF) systems can operate in the 800 – 900 MHz
2D barcodes and RFID tagging solutions are becoming more and more popular.
MHD TECHNOLOGY range, although in Australia the frequency is restricted to 916 – 927 MHz to comply with ACMA standards. UHF systems confirm to ISO 18000 standards to ensure tag compatibility and offer long read distance of up to 10 metres with passive non-powered tags. Whilst the cost of the UHF antennae and controllers is higher than for the other RFID systems, the tag costs are typically lower and can therefore still be a cost-effective solution for consumable products. Due to the capability of reading multiple tags at once, UHF systems are ideally suited for warehousing and logistics applications. The ifm DTE920 UHF RFID Controller can monitor up to four ANT9xx series antennae, and the code information is transmitted via Ethernet IP with other industrial Ethernet protocols also possible using the ifm AC14 Smart PLC as a gateway and a dedicated app. High Frequency (HF) systems operate at 13.56 MHz to ISO 15693 standards to ensure compatibility of tags. Read distances are limited to around 200mm, making them ideal for monitoring conveyed items such as trays and part carriers as well as access control. Other applications include tool identification for machine tools and mobile
“
RFID systems offer the advantage over 2D barcodes in that the codes can be read when completely soiled, and independent of lighting.
”
machines to match the operating parameters to the tool in use. ifm efector offer UHF antennae with IO-Link and ifm proprietary ID-Link protocol for industrial applications, as well as CANopen and J1939 for mobile applications. Both the IO-Link and ID-Link antennae utilise modules to interface with standard industrial Ethernet protocols such as TCP/IP, Ethernet IP, ProfiNet, EtherCAT and Modbus TCP. Low Frequency (LF) systems operate at 125 kHz and do not comply with international standards meaning tags from one manufacturer may not be readable by antennae from another supplier. Read distances are usually limited to around 100 mm, and the data stored on the tag is small. Due to the low operating frequency LF tags can be direct mounted to metal surfaces without any significant reduction in range, making them ideal for identification on conveyed part carriers. ifm efector offers the DTE100 evaluation units with TCP/IP, Ethernet IP, ProfiNet & EtherCAT protocols along with antennae for LF applications, along with the DTS125 system with AS-interface as an ideal solution on conveyors. ■
TOLL CHOOSES SWISSLOG FOR A MORE EFFICIENT DISTRIBUTION SYSTEM
SCAN FOR MORE!
Moving to automation increased productivity by 200%
An extension of the existing long-term partnership between Swisslog and Toll
Higher distribution volumes of retail ready cartons Increased efficiency with higher pick rates in less time
swisslog.com
Managed by Swisslog’s intelligent SynQ software Decreased footprint and increased flexibility with modular expansion
MHD TECHNOLOGY
STOCKTAKING DRONES A recent partnership between Dexion and Infinium Robotics will give an accessible and practical application to drones in Australia’s warehouses.
“M
any major technology organisations are developing drones. These include Google, Amazon and Boeing. Much of the focus from tech giants is to deliver individual orders to consumers via drones. While this is an impressive development of technology, it’s not overly practical”, Martin Kramer, Head of System Solutions at Dexion says.
Dexion has exclusive distribution rights for the Infinium drones in Australia and New Zealand.
42 | MHD SEPTEMBER / OCTOBER 2019
“There are always big jumps in the development of technology, like AGVs, like drones or visual readers. Being able to combine these different technologies usually comes with lots of complexities, but once achieved can create a demand for a number of unique applications,” Martin says Martin is referring to the new offering that Dexion will be
bringing to the Australian market. Dexion has signed an exclusive partnership agreement with Infinium Robotics to distribute its latest autonomous stocktaking drones in Australia and New Zealand. “Dexion is always looking to be at the forefront of technology adoption. With drones, there has been many legislation issues, it was really a wild west for a while there. But we wanted to explore opportunities where the technology could be used much more practically in a logistics setting,” Martin says. The Dexion Infinium Scan drone is a fully autonomous drone that aids in inventory management for full pallets and reconciles differences with warehouse management systems automatically. “The real point of difference with this kind of application for drone technology is that the drone operates with an automated guided vehicle (AGV),” Martin explains. According to Martin, this kind of combination has never been done before but offers a number of benefits. The drone is attached to the AGV which provides greater path integrity – it constantly communicates with the AGV. Additionally, the AGV powers the drone – which means the drone can fly for up to four hours without running out of power. “There is a small cable that attaches the drone to the AGV so the AGV can stop the drone if something gets in the way, for example,” Martin says. The drone can rise up to 80 feet and scan along one layer of stock, then the AGV can direct it to move down one layer and it repeats the process over and over until the entire stock take is done. “In today’s warehouses, the segregation of staff and equipment
MHD TECHNOLOGY
“
There is a small cable that attaches the drone to the AGV so the AGV can stop the drone if something gets in the way.
”
is essential to reduce risk”, Martin says. The Dexion Infinium Scan allows organisations to reduce that risk by not having to place people in busy aisles and difficult to reach spots to count stock. “Any system that we can design which segregates people from machines is always a good thing,” he says. In Australia, there is also the added benefit of labour saving when it comes to stock takes. “Some 3PL’s have it written in their contract that they need to count the stock at set times, weekly, monthly or quarterly. This can be very costly, sometimes it’s a full-time job for someone,” Martin says. Stocktakes can also require entire warehouses to be shut down for periods of time. But with the Dexion Infinium drone it can work autonomously through the night, when nobody is in the warehouse. “With stocktaking being such a laborious and costly process, this will be a welcome innovation”, Martin says. “Stocktaking is an extremely labour intensive and costly process, especially when warehouses need to be shut down for periods of time. With the Dexion
Infinium drone all that is eliminated and the drone can autonomously count the inventory without requiring the warehouses to shut down and have staff do cycle counts,” he says. The drone can also be adapted to whatever barcode reading system is used within the warehouse. “Whether you use RFID, 2D barcodes or any other system it’s just a case of fitting the correct reader to the top of the drone and off you go,” Martin says. The drone can scan up to 10,000 full pallets a day and can operate for four hours, the longest operational time in the industry. “The Dexion and Infinium Robotics partnership represents both companies’ commitment to innovation and anticipating customer needs”, Martin says. The agreement is for exclusive distribution in Australia and New Zealand with nonexclusivity in the rest of Asia. The Dexion Infinium drones are just the latest in Dexion’s pipeline of new products to be released over the next six to 12 months, giving customers access to the latest innovations in warehouse technologies from around the world. ■
Efficient route planning and scheduling with PTV Route Optimiser
Improve Customer Service Improve satisfaction trough fast and timely deliveries
Reduce Costs Cost savings of up to 8%
Increase Efficiency Evaluate your logistic processors and achieve transparency
PTV Group Australia
Unit 415, 410 Elizabeth Street Surry Hills, NSW 2010
+61 2 9698 1292 www.ptvgroup.com
MHD SUPPLY CHAIN With a voice interface operators only get the next set of instructions needed for the task.
BEST OF BREED SOLUTIONS FOR THE ENTIRE VALUE CHAIN The e-commerce revolution has changed the traditional warehouse and distribution centre model. What kind of solutions should be deployed to meet this change?
“A
s we push further towards the e-commerce model I think we’re seeing a major change in the way that distribution centres are being run,” James Hendrickson, Director of Product and Offering Management at Honeywell Voice Solutions says. In a recent Warehouse of the Future report by property developer JLL, the organisation revealed that distribution centres are changing due to the continued growth of e-commerce and last-mile delivery. This type of warehousing is driving significant demand for industrial properties, as well as innovation in terms of how assets are built. James echoes this by pointing out that 10 to 15 years ago, organisations were building huge warehouses to deal with rising demands, but now people are looking for small DCs in city centres to meet home deliveries. “Ten years ago, when organisations were building warehouses covering 100,000 square metres nobody would have thought that we would be moving towards a more boutique warehouse trend to meet home delivery for consumers living in city centres,” he says. The report also revealed a similar pattern, with 60 per cent of new warehouse development made up 44 | MHD SEPTEMBER / OCTOBER 2019
of facilities from 50,000 to 250,000 square feet. “Warehouses now need to be able to handle a variety of different types of product and picking styles. The effects of this change in demand is far-reaching. You have to rethink how you design a DC, how many and what type of dock doors are needed, how you train your workers, the list goes on,” James says. One area that tech can play a crucial role is in the changing tasks of warehouse workers. Historically workers used to do the same task over and over again, but now there might be multiple tasks at different types of the day. When demand changes, so does the task. With this in mind, organisations cannot afford to spend a lot of time on-boarding workers and training them up when demands are so high, James says. “Organisations need the ability to onboard or recruit workers and get them out there working as soon as possible. They need to be trained as quickly as possible without a lot of over heads.”
FLEXIBLE END-TOEND SOLUTIONS Organisations often find themselves looking at technology and automation and wondering which solution is best for them. According to James, one common
issue is that people think in silos “It’s so important to think about this kind of technology holistically. You need to think about your entire value chain from end-to-end. You need to think about solutions that fit the need you have now but that will also grow and scale with you either up, down or across,” he says. For James, the most important thing is to implement solutions that are flexible. For him, this is the great benefit of voice solutions. “The flexibility, productivity and accuracy you get with voice is comparable to any other kind of advanced technology, but its flexible enough to be deployed to a number of different environments very quickly.” Voice solutions can move with the worker from a city centre depot, onto the truck as a moving warehouse, into the retail store or the main DC. This would be difficult to do with other technologies like automation. A voice interface is also easy to learn. “With voice, you only get the next set of instructions you need. The instructions guide you through the task at hand. There is virtually no training required. Additionally, you don’t need to have years of experience or a digital native, it really is easy for everyone to pick up,” James says.
MHD SUPPLY CHAIN SELECTING THE RIGHT PARTNER When considering what steps to take in introducing technology and solutions to meet the changing environment of the DC, James says it’s about finding an integrator who has access to all the technology that you may need, either now or in the future. “You need to be crystal clear about what your problems are, where you’re going in the future and then look for a vendor who has access to all of that technology,” he says. At Honeywell, it’s all about de-risking the supply chain. “You want to find a vendor or integrator who has the most expertise and most access to tech so that you de-risk your entire project. Once you get further down the line in terms of technology implementation, the last thing you want in your critical supply chain is for two large vendors squabbling, especially if they are from different areas of the world.” Honeywell has a full portfolio and suite of products as well as a large network of reseller channels. “Finding the right partner that will support you
in a variety of different tech solutions is absolutely critical as your supply chain becomes more and more demanding,” James says.
EMPOWERING PEOPLE While technology is playing a big part in making workers carry out their jobs safely, accurately and efficiently it should really be in the background. “It’s easy to talk about quick scan performance or conveyor performance but the goal is to enable workers to be as successful as they can be. That’s how we think at Honeywell. The tech should be in the background and should continue to empower the worker, that’s true transformation,” James says. This approach can also be applied to introducing robotics in the warehouse. Where there is a task that could be done by a robot to save time, wear and tear on the body, it should be. But it should also be about the robot and the human working together. “We believe that robots and existing workers will co-exist because they both have specific things that they can do better than each other. They can empower the worker to be as successful
James Hendrickson, Director of Product and Offering at Honeywell Voice Solutions. as they can be,” James says. Honeywell is developing robot interfaces that workers can relate to. “We’ve deployed our voices solution interface into our robots to create a Cobot type experience. We believe it’s about bridging the capabilities that people have with the repetitive skills and ability that the robot has so that we can create a safer and more accurate environment today and in the future.” ■
Tough markers
for tough
work. Make your mark fast, reliably, without fuss – put some Pilot Permanent Markers in your toolbox. Made in Japan using new permanent oil-based ink technology with class-leading performance in four vivid ink colours. They write on almost anything – cartons, plastic, wood, paper and metal – they’ll even write over grease or oil. The marker also guarantees a 24 hour cap-off life – a tough marker for tough jobs. Go to pilotpen.com.au/permanent-marker for more information.
Japanese quality
Vibrant colours
24hr cap off life
Fade resistant
Multi surface
MHD MATERIALS HANDLING
SMARTER CLEANING Using smart technology to better monitor cleaning equipment in a warehouse and logistics environment.
L
ooking after a large fleet of machines comes with a number of challenges, according to Kylie Mobsby, Strategic Account Manager at Tennant Australia. “Monitoring machine locations and finding lost machines as well as working out who is using what machine wastes a lot of time,” Kylie says. Many warehouse and logistics providers have a large fleet of sweeper and scrubbers for cleaning warehouses and workshops. However, if these machines do not have smart technology, they are not being utilised to their full potential, Kylie says. “Monitoring location, performance and maintenance data for equipment are all crucial to the running of a clean and high-functioning facility. But if you are doing this manually it just isn’t efficient,” Kylie says. Collecting and reporting on all of the information needed to monitor machines eats into valuable cleaning time – as well as profits, Kylie says. As organisations utilise data across most of their operations, cleaning should be no different, Kylie says. “Running a business is all about data these days. With more advanced technology, you can get access to data on your machines, how they’re being used, and where they’re located.” With access to real quantifiable metrics, more accurate and confident decisions can be made. “These decisions can have a real impact on your operation. You can deliver a better clean, optimise team performance and run a better business,” Kylie says. Having the correct data and a data driven approach has a number of operational benefits. These include swapping an underutilised machine out into the field, scheduling an extra training session for staff 46 | MHD SEPTEMBER / OCTOBER 2019
Many warehouses use a large fleet of sweepers and scrubbers for cleaning. who aren’t following protocol or best practices, investing in more machinery and technology that demonstrates better performance.
TEAM MANAGEMENT WITHOUT MICROMANAGEMENT Smarter technology has the added benefit of ensuring accountability. “Data helps you confidently manage the who, what, when, where, how of your machines – without micromanaging your team or taking up valuable time with manual processes and data entry,” Kylie says. With this kind of access reporting organisations can experience greater accountability, Kylie says. “You can motivate your team to perform their best and reach KPIs in their area. The right technology can help support your role as a team leader and manager by providing real data on how your team and your machines are performing,” Kylie says.
SPOT PATTERNS AND SOLVE PROBLEMS Often if there is a recurring maintenance issue with a machine, it is difficult to get to the bottom of the problem. However, smart technology can help find out the source of the problem and provide information about how to fix it, Kylie says. “Data enables you to check the machines’ usage and identity to see if there are any patterns that might cause problems. For example, inappropriate usage or missed services. You could introduce extra staff training on this occasion to ensure all machines perform as expected,” Kylie says. Similarly, if there is a complaint or an issue with the standard of cleanliness in one zone then data of the specific piece of equipment that was used can be checked to make sure it was used appropriately and for the expected time.
MHD MATERIALS HANDLING Another very useful pattern to be explored is spending data. “You can track spending on maintenance, servicing, and repairs. This way you can forecast future spending and set aside a more accurate budget,” Kylie says.
offer a huge range of features and options, including on-demand training videos and more than 28 language options as well as preoperation checklists.
TRAINING
SAVE ON COSTS
An additional benefit of smart technology is that training and on-boarding processes can be built into the machines. “If you’ve got a large fleet of cleaning machines, you’ve probably got a sizable team to go with it,” Kylie says. When training a large team or on-boarding new members regularly, training processes that scale easily are essential. “Regular training means your team can keep up with the latest changes, new efficiencies, and improved standards. Nowadays many advanced cleaning machines include technology that can speed up your team’s learning,” Kylie says. Many Tennant machines come Chris Littlewood Wearhouse Adverisement.pdf with Pro-Panel LCD Touch- 1 21/08/2019 Screens – these control panels
Managing a large fleet of cleaning equipment can get very expensive, Kylie Organisations utilise data across a number of says. But those costs can operations, cleanng should be no different. be controlled with smarter cleaning technologies. “You can track battery IRIS Asset Manager on board charging activities and ensuring software to monitor machines and members follow best practices, you drive cleaning performance. IRIS can extend battery life and minimise gives complete visibility of your battery replacement costs. You can fleet, delivering key performance also decrease the likelihood of losing metrics and intelligent insights that equipment with location data and increase productivity, reduce costs alerts and identify and rectify misuse and ensure cleaning consistency. and user error,” Kylie says. IRIS gives complete visibility of an entire fleet with push reports, TRY SMARTER TECHNOLOGY critical alerts, as well as metrics Tennant, a manufacturer of across machine usage, battery 15:57:15 indoor and outdoor environmental performance, location, servicing cleaning solutions, has developed and maintenance costs. ■
The Perfect Partner in Warehousing & Manufacturing Whether you are handling long loads or palletised goods, Combilift offers the most customised cost effective, safe and space saving materials handling solutions for your industry
Call: 1300 552 422
combilift.com
MHD PRODUCT SHOWCASE
NEW COMBILIFT CONTAINER SLIP-SHEET Combilift’s latest innovation has been designed for quicker and easier mechanised loading of products into containers.
F
irst unveiled during Combilift’s 20th anniversary last year, this product is now in serial production. The Combi-CSS addresses the challenges associated with the combination of forklifts and manual labour often required for this application, Martin McVicar, Managing Director says. “Using a forklift to lift and manoeuvre the product laterally into the container and another forklift operator to push the load into the container from the end is time consuming and not overly efficient,” he says. Following the launch of the Combilift Straddle Carrier a few years ago, feedback from customers in the containerisation sector prompted Combilift to look at how these procedures could be improved. The result is the patented CombiCSS; a low, free-standing platform with a dual-directional motor-driven pulling mechanism, on which a Hardox 500 steel sheet rests. It has a capacity of 30,000 kg and allows a full load of product to be prepared behind the container on the sheet and loaded onto a 20’ container in just three minutes (and six for a 40’ container). Once loaded, the sheet is guided into the container by the mechanism underneath, which consists of four hydraulic cylinders moving in sequence. Hydraulic pins on the ends of the cylinders move up, fitting into holes cut into the sheet to secure it, while the cylinders pull the sheet forward, ensuring safe loading without any risk of product damage. When the goods are fully loaded within the container, a hydraulic rear barrier gate, fixed to the end of the platform, swings across the container opening and is locked in place across 48 | MHD SEPTEMBER / OCTOBER 2019
Combilift’s latest product addresses many of the challenges associated with the combination of forklifts and manual labour.
the entire width of the platform. This holds the material within the container while the metal sheet is slipped out from underneath it, hence the name. “I am confident that companies
dealing with containers will embrace this new product, as they did the Straddle Carrier, due to the improvements it offers in terms of safety, speed and efficiency,” Martin says. ■
MHD SUPPLY CHAIN
PLANNING FOR PEAK SEASON As we edge towards the peak season, logistics providers are already starting to plan for the huge challenge ahead. Peter Kueth at HERE Technologies says organisations can better cope if they maximise their available assets.
S
pending at Christmas is rising every year and online discount days such as Boxing Day, Amazon Prime Day and Black Friday are becoming increasingly popular in Australia. Amazon Prime Day took place for the second time in Australia this year and generated nearly $3 million for the company. The number of customers who used Prime Day this year in Australia was up around 15 per cent from its first year. In 2017, Australians spent $11 billion dollars on Christmas gifts alone, and that’s without even considering all the food and drink that play such a central role in the festivities. When this is taken into consideration the figure will reach close to $25 billion, according to a study by Finder.com.au. One of the most crucial factors to get right in ensuring that peak season runs according to plan is accurate estimated time of arrivals (ETAs), according to Peter Kueth, Senior Product Marketing Manager at HERE. “In order to plan well for any peak in demand you need to know where your trucks are, where they are going next, and have an accurate understanding of when they will arrive at their destination,” Peter says.
REAL-TIME DATA For Kueth, coping with the demand during peak season is very much about ensuring that the assets you do have are performing at optimum levels. “In our experience, some of the most sophisticated logistics companies find out if a shipment is running late by calling someone, who calls someone else, who then calls someone else. By the time they find out it’s late, it’s already had a negative impact on the operations,” he says. By using location intelligence solutions, there is complete visibility over where assets are at any time. Additionally, comparisons can be made between historic data. “With location intelligence software that is specific 50 | MHD SEPTEMBER / OCTOBER 2019
Peter Kueth, Senior Product Marketing Manager at HERE.
“
In order to plan well for any peak in demand you need to know where your trucks are, where they are going next, and have an accurate understanding of when they will arrive at their destination.
”
to industry, you can see patterns in routes taken, rest times, weather conditions, speed limits,” Peter says. These patterns can be used to route better as well as make changes, if necessary. “If you have access to live data, you can make changes to a route and spot problems before they become an issue,” he says. This is particularly helpful when moving time-sensitive freight. “If you are moving refrigerated goods and you have a change in temperature, you can very quickly change the route the truck is going to take to prevent goods from being ruined or damaged” Peter says. Additionally, if an organisation is moving a certain chemical or hazardous goods, the mapping software can route accordingly. Many mapping solutions organisations build data around consumers in cars, but HERE has developed industry specific roadmaps. “Our data encompasses truck speed limits, height of any bridges, curvature of the road, road surface—every attribute you need to plan the most efficient route possible,” Peter says. Peter uses the example of the famously low South Gregson Street train overpass in North Carolina. “Trucks have lost their rooves countless times trying to get under this bridge, but our software would never route them this way because our data includes all these relevant attributes,” he says.
DRIVER SAFETY AND BEHAVIOUR The HERE data does not stop at the attributes of the road; it also includes driver behaviour. “We can plan a route to include rest response time but also maximise the time on the road safely. We can make sure that a driver chooses a rest time that optimises their route,” Peter says. Routes can also be planned dependent on the type of vehicle used, whether the goods will be travelling in a larger truck, a small truck or a van. There are attributes of the
MHD SUPPLY CHAIN
road that will suit different kinds of routes. It’s not a one-route-for-all approach, Kueth says.
ON-TIME DELIVERY During peak periods, logistics providers have to make more deliveries in a tighter timeframe, usually with the same amount of assets. One of the main issues that logistics providers have to deal with is missing delivery slots at ports, warehouses or retailers – often resulting in significant fines. “Many companies have been imposing stricter delivery windows, because they recognise that these impact their bottom line as well as customer satisfaction,” Peter says. Without accurate ETA information, it’s difficult to avoid these kinds of fines. “Our software will alert the right person to let them know that the predicted arrival time is outside of the allocated time slot. This way, something can be done. A reschedule of the slot or at least communication with the customer will go a long way in reducing these fines,” Peter says.
Access to live data allows organisations to make better decisions. Having access to live and real-time data from the moment the goods leave their origin allows organisations to better make decisions about the entire operation. This is particularly crucial when the pressure is on during peak periods.
Resource Planning platform, so we have made sure that by integrating HERE location intelligence and mapping there is no requirement to add yet another user dashboard that will need to be logged into,” Peter says. HERE recognises that delivering at peak period puts pressure across the entire logistics operation. The location software has been designed to better manage fleets and maximise the utilisation of assets so that organisations can deliver the quantities required as safely and efficiently as possible. ■
COLLABORATION HERE has designed a solution that integrates with software commonly found in the logistics space. “We recognise that most logistics managers start and end their day within a Transport Management or Enterprise
Imagine the savings! You may not realise it, but your business could be wasting around 20% of your compressed air! Find out how SMC delivers value by offering you a commercial approach to energy saving. From energy savings to cost savings – easy as SMC!
Energy Saving Components & Expertise Reducing Electricity & Compressed Air Consumption
Make energy saving your resolution with SMC’s range of energy saving components. Specify energy saving components for new machines or when replacing legacy equipment to enjoy improved cost savings, productivity and profitability. Gain a competitive advantage – whilst helping to save the environment.
Contact us for more information or to request an appointment: AU – 1800 763 862 or AUSales@smcanz.com NZ – 0800 1320 762 or NZSales@smcanz.com
www.smcanz.com Global Leader in Automation and Pneumatics SMC Corporation Australia | New Zealand Group
MHD PRODUCT SHOWCASE
LESS IS MORE SMC Corporation has launched a new award-winning wireless solution for robotic applications. Ming Liu, Head of Product and Pricing at SMC Corporation explains why less is more when it comes to fieldbus systems.
C
ables failures and electrical noise can cause setbacks in the warehouse, Ming Liu, Head of Product and Pricing at SMC Corporation says. SMC Corporation has designed a new wireless fieldbus system for industrial robots. The EX600-W, which is currently being used in the food, beverage and packing industries recently won the Technical Innovation of the Year Award at the 2019 Motion Control Awards in the UK. The EX600-W is a decentralised wireless fieldbus system, compatible with industrial Ethernet, which allows the connection of several remote modules to a base module unit without having to use communication cables. According to Ming, the solution can withstand electric noise and is suitable for harsh, industrial environments. “This wireless fieldbus system integrates both digital and analogue signals, as well as pneumatic valve islands – making it a flexible solution for all applications. In noisy environments and harsh environments this unit remains steadfast with Ming saying that “The EX600-W uses the 2.4 GHz ISM frequency band and five msec frequency hopping. The noise resistance design makes it even suitable in welding environments,” Ming says. The EX-600 is suitable for almost
52 | MHD SEPTEMBER / OCTOBER 2019
The wireless unit ensures minimised installation, modifications and maintenance time. any application and is ideal for welding workshops or tool changes in robot arms. Due to its lack of cables, there is less installation and maintenance and less breakage and disconnection risk. As a customer centric organisation, SMC designed this unit with exact this in mind. This wireless unit ensures minimised installation, modifications and maintenance time. “The risk of disconnection and circuit breakage is also significantly reduced to both performance and productivity” he says. The EX600-W products are compliant with the all applicable Australian Communications and Media Authority (ACMA) requirements and have been registered to use the regulatory compliance mark (the RCM) in AU and NZ.
SUNRICE SUCCESS STORY SMC collaborated with SunRice, one of the largest branded rice food companies in the world. A proudly Australian company, the organisation welcomed CopRice to its growing portfolio more than 40 years ago; CopRice manufacture and supply quality livestock feeds. The manufacturing process includes rice brokens, rice bran and rice hulls
which are supplied through the rice milling process. CopRice’s primary Robotic Palletiser is crucial to their business. Used daily, this 500 kg payload robot is fitted with a SAS Fork tine gripper to pick and place stock feed SKU’s. With various sized bags needing to be palletised, the gripper tines had to be in different positions when picking up these bags to ensure that the best quality products are stacked onto pallets for customers. In terms of the application, the robot gripper needed to adjust the gripper tines automatically for each SKU as it was being palletised. The problems that CopRice faced in the past was a limited number of inputs and outputs, expensive fieldbus modules and failed solutions due to vibrations on the gripper, Ming says. Ricegrowers Engineering partnered with SMC to develop a customised solution for CopRice. As a recent addition to its portfolio, SMC’s wireless fieldbus system – the EX600-W - was specifically specified and customised for this application. According to the customer, the EX-600 was easy to install, affordable and the technical and sales support were outstanding, Ming says. ■
Beyond Points A and B Modern logistics management is as much about moving data as moving goods. With fleet management solutions from HERE, you can do more than meet ETAs. You can move business forward. Take the first step at here.com
MHD SUPPLY CHAIN
LAST-MILE EFFICIENCIES James Taylor, Managing Director at ANC aimed to implement route optimisation software to increase profitability for drivers. But the benefits realised were far greater than he anticipated.
L
ast-mile delivery is one of biggest challenges in logistics. Retailers, logistics providers and solutions providers are investing significant resources into conquering the final part of the logistics operation – the critical last-mile. E-commerce has exasperated the complexity of last-mile delivery. What used to be trucks making deliveries to a retail store or depot is now individual consumers receiving parcels at home or at work, sometimes on a daily basis. The Pitney Bowes Parcel Shipping Index found that Australians receive an average of 34 parcels a year, with total parcel volume in Australia growing from eight percent to 841 million parcels, up from 778 million in 2016. For ANC, one of Australia’s home delivery and corporate fleet services, reducing congestion and emissions and ensuring that the delivery is as efficient and as smooth as possible is crucial, James Tayler, Managing Director at ANC says. “There’s so much congestion already on our roads – anyway that we can
get trucks off the road is a win for the community,” James says. While recently attending a conference in Philadelphia, James recalls a discussion around the issue no longer just about being able to make the journey to the delivery point, but about the availability of kerb side space to stop and safely unload when the vehicle arrives at the delivery point. For James, being able to route more efficiently and save fuel costs, reduce emissions, reduce driver time and free up congestion on the road could only be a good thing. “What started as an efficiency plan, has enabled us to achieve a number of different benefits,” James says. James knew that if he wanted to improve efficiency at ANC he had to better optimise the organisations route planning. “The first part of this journey for us was efficiency of our valueable resource – the drivers,” he says. James wanted to enable ANC’s contractors to improve their profitability by becoming more efficient. The ultimate aim was to drive less kilometres, work less hours and achieve
Reducing congestion and emissions is crucial for ANC.
54 | MHD SEPTEMBER / OCTOBER 2019
a higher density of work, he says. ANC went to market for a route optimisation provider, and PTV RouteOptimiser was selected. “They were certainly the best that we had seen,” James says. The ANC model uses contractors to make its deliveries, all drivers have their own vehicles. One area in particular that the drivers were not planning or driving as efficiently as possible was by making the common misconception that driving around the traffic was a good idea. “Driving 20 minutes further is very tempting for drivers, but it is not as efficient as actually sitting in a traffic jam. By driving further, you burn more fuel and often waste more time than just waiting for the traffic to clear,” James says. The PTV software ensures that drivers take the optimum route when on a consignment. “For our drivers, the software is a great tool. The drivers don’t always have the latest geographical experience in metropolitan areas. Their job is hard enough, now they don’t have to worry about trying to work out the most effective way to get to a location,” James says. ANC’s contractors have seen significant benefits since the implementation of the PTV platform. “It has taken out a fundamental but important part of the job for our drivers and allows them to concentrate on customer service,” he says. Much of ANC’s clients are retailers of large and bulky goods, so an important part of their job can be entering the home with the delivery and in some cases, installing the product. By taking out the complication of the driver having to plan their route, the drivers are now able to concentrate more on the delivery experience itself and providing the best service to the customers.
MHD SUPPLY CHAIN
Delivering large and bulky goods through contractors has another layer of complexity. “We have drivers with different vehicle capacities but this was no problem for the PTV software. All variables are mapped out and put into the system,” James says. In addition, the software will calculate a different delivery time slot depending caption on the type of goods that will be delivered. If there is an installation involved, it will allocate more time, James says. ANC implemented the PTV offering almost two years ago, and from early on in the implementation the team found the platform both intuitive and easy to navigate. “Implementation wasn’t tricky at all. Of course, with all new IT systems there is a learning curve but it was quite simple with PTV,” Lucy MacMillan, National Systems Integration Manager at ANC says. Before implementing PTV, there was a lot more people working on route planning, Lucy says. “We’ve reallocated
a couple of shifts since implementing PTV but at the same time we are doing a lot more work,” she says. One area that ANC has been able to improve is in consistency for their big brand retailer clients. “We are doing a higher volume of work and our clients are reporting less issues,” Lucy says. ANC has been able to be much more accurate with delivery times, Lucy says. “One of the most impressive things is that we have been able to be much more specific with our delivery window. The night before we can tell a customer a two-hour window that we will be delivering in,” she says. Prior to PTV there was a lot of manual intervention, James says. “From a map full of dots the allocator would determine the best route. But now with this tool and the historical data we have, we can see what time we will be at what address and what time we will be completing the job, with greater accurately,” he says. “We integrate our Transport Management System (TMS)
LOW COST container handling SAFE no wire ropes YARD FRIENDLY lowest wheel loadings
Australia +61 (07) 3811 5049
consignments into the software and it filters through all kinds of complex data. It geocodes each address and provides our drivers with the most efficient route possible. This was the most cumbersome part of the routing process” James says. As e-commerce and omni-channel retailers have grown significantly over the past couple of years, the implementation couldn’t have come at a better time for ANC. “All of our clients are growing in their own right – ANC has had solid growth every year. This routing tool make ANC more efficient and allows the drivers to be more profitable. These are key to both our growth trajectory and that of our clients,” James says. “The whole idea behind working with PTV was to look at our delivery teams and work out how we can make them more money, but it’s delivered other benefits including better customer service, less kilometres driven therefore less fuel emissions, less vehicles on the road and less fatigue for our drivers,” James says. ■
MHD 2019 FORKLIFT GUIDE
Toyota Material Handling is a global leader in material handling equipment and has one of the widest range of quality forklifts and batteryelectric warehouse products available in Australia.
T
oyota’s selection of internal combustion and battery-electric counterbalance forklifts range from 0.9 tonnes right up to a massive 24.0 tonnes, complemented by an extensive range of warehouse equipment. In addition to its range of forklifts and warehouse equipment, Toyota Material Handling Australia also distributes tow tractors, elevated work platforms, sweepers and scrubbers, Taylor-Dunn burden carriers, pallet racking and warehouse racking solutions, plus the Toyota range of Huski skid steer loaders and scissor lifts. Fully backed by over 300 Toyota Material Handling Australia service vans and over 450 service support staff. ■ Call 1800 425 438 www.toyotamaterialhandling.com.au info@tmha.com.au
TOYOTA BT SAE AUTOPILOT STACKER Transitioning to Automation, simple AGV solutions The SAE ‘Autopilot’ is the ideal machine when transitioning into the Automated Vehicle space, it is ultimate vehicle for simple Autonomous solutions. Due to its compact size and versatility it can be used in tight production areas as well as in large fleets moving masses of pallets. The SAE is offered in both a fork-over and straddle design. The SAE can be utilised as a simple taxi system or combined with Intelligent Integrated Intralogistics software (T-ONE) to allow seamless integration with Enterprise Resource Planning tools and Warehouse Management Systems. Within the T-ONE package; statistics dashboards and live order management are made visible giving operations complete transparency whilst operating their facility.
56 | MHD SEPTEMBER / OCTOBER 2019
TOYOTA BT RAE160 AUTOPILOT REACH TRUCK – Advanced Automation The RAE ‘Autopilot’ series is a hybrid AGV based on a manual Reach Truck with a fully integrated navigation and safety system. The RAE ‘Autopilot’ series attains all the reliability and serviceability as with the manual version and inherits all the added benefits of an automated vehicle. Analysis of projects completed from around the globe using the RAE ‘Autopilot’ series yielded a number of efficiency and productivity gains. Firstly, the use of the RAE in high bay racking environments greatly improved the safety of the operation and in conjunction reduced the amount of damaged product significantly. Secondly the RAE ‘Autopilot’ enables warehouse operations to run a third shift under minimal supervision, this assists the warehouse operations to perform replenishments and non-peak tasks throughout the night without the need for a complete shift of labour. As a result, this increases the throughput of the warehouse as the high demand tasks can be put into focus during the day shifts.
RAYMOND 7530 & 7730 HIGH CAPACITY REACH – Tallest reach truck in the market Toyota Material Handling is proud to announce the new additions of the 7530 and 7730 models into its 7000 Series of Narrow Aisle reach trucks. With a lift height of 13,767mm, it’s the tallest in the market and boasting a capacity of 975kg to 12.8 metres ‘you can put any pallet anywhere!’ With its industry-leading acceleration, lift, lower and travel speeds it provides operates with superior productivity coupled with outstanding efficiency. Designed using our unique philosophy of “Eco Performance”, operators can increase productivity while reducing their energy consumption by having fewer battery changes, less battery charging, superior uptime, minimised energy consumption and carbon footprint and greater productivity, all culminating to driving down the overall cost of ownership to business.
TOYOTA 8FBE – Safety & Versatility Toyota’s 8FBE 1.0-2.0 tonne range redefines 3-wheel electric forklift quality, reliability, safety and productivity. Designed to be Toyota tough and easy to maintain. 8FBE also has a high-water resistance rating (IPX4), the perfect solution for indoor and outdoor operations. The operator’s compartment has been carefully deigned to ensure maximum forklift control from minimum operator effort, furthermore includes built in load weight indicator, rear wheel positioning indicator and foot activated parking brake. The compact body and turning performance all add up to superior operability in narrow worksites. The efficient Toyota motors and motor drivers minimize energy loss and minimises heat generation, combined with regenerative braking systems and power saving functions that ensures long operating time (20 per cent more than previous model).
TOYOTA 8FG/D10-35 #1 Counterbalance forklift consecutively since 1987 For more than 32 years Toyota’s 1.0-3.5 tonne engine powered counterbalance forklifts have been Australia’s number 1* enginepowered forklift model. The current 8 series range is no exception, stacked with world class safety, superior performance, outstanding productivity and user friendly ergonomics. Combine that with the quality, durability, reliability and overall low cost of ownership that you’d expect from a Toyota product, it’s simply first class. The large assist grip, low step height with non-slip surface, ORS seat and spacious operator compartment which makes for easy entry/exit, in addition to low noise and vibration levels all of which enhance the overall operator comfort which in turn will reduce fatigue and risk of injury. 8 Series Toyota forklifts are equipped with Toyota’s exclusive System of Active Stability (SAS) which monitors key forklift operations, detecting and counteracting instability to help reduce the risk of tip-overs. *Source - AITA statistics 2018
TOYOTA BT LEVIO LWE130 – Upgrading from a hand pallet jack to an electric pallet jack We all know that excessive force used during push, pull or carry tasks can cause injury, so the use of mechanical devices is a good idea. The most common injuries stemming from manual pallet jacks include strain injuries to the lower back, shoulder, arm muscles and joints. The forces needed for initial movement and to sustain motion are recommended not to exceed 320N (N= Newtons) for men and 220N for women to avoid injury. Forces applied to the body when stopping and starting a manual pallet jack are virtually eliminated when moving to a powered (electric) pallet jack such as the Toyota Levio LWE130. The LWE130 powered pallet jack with its ergonomic steering and outstanding manoeuvrability is perfectly suited for back of a truck use, warehouse or back of store applications. The Click-To-Creep function gives it even more flexibility in those tight areas where every inch counts. The LWE130 W series provides the operator with increased safety and a new level of productivity in low-intensive applications.
MHD SEPTEMBER / OCTOBER 2019 | 57
MHD 2019 FORKLIFT GUIDE
Crown is one of the world’s largest material handling companies with a reputation for award-winning product design, advanced engineering and technology, and superior service. Crown operates a service and distribution network that exceeds 500 retail locations in more than 80 countries. In Australia, Crown serves its customers from a strong network of company-owned branches and official resellers covering all metropolitan and regional centres with trained service technicians.
MPC SERIES The Crown MPC 3000 Series combines the benefits of an order picker with the advantages of a counterbalance forklift. It features a high-lift, clear-view mast with an outrigger-free counterbalance design and an ergonomic ride-on platform; a combination that creates a versatile, multi-purpose lift truck capable of performing tasks usually requiring more than one piece of equipment. It uses the tried-and-tested Crown AC traction motor for reliability and powerful acceleration, and is capable of travelling up to 12.5km/h and lifting 1200 kilograms to a height of 4.3 metres. It can lift full-capacity loads (at a 600mm load centre) to the full height of the mast. The MPC 3000’s layout makes it ideal for order picking as well as replenishing low-level pick slots from high-level storage, an activity that usually requires separate reach trucks and high-lift trucks.
Call 1300 283 390 or visit crown.com to find out more.
WAV SERIES The Work Assist Vehicle is a revolutionary, mobile productivity tool that allows one person to safely and efficiently accomplish the work of two while travelling twice as fast as the average walking speed. It is capable of working at heights of up to five metres, travelling up to 8 km/h, simultaneously travel and elevate for smoother, more efficient workflows and manoeuvre through tight aisles and doorways as narrow as 80 cm. The Wave load tray supports up to 90kg, while the load deck holds up to 115kg. With its latest version, the Wave 60, Crown has elevated its style and substance with important specification enhancements and fresh aesthetics. The Wave 60’s revisions strengthen its wellknown functionality, which has helped numerous organisations improve workplace safety and productivity levels beyond the capability of ladders.
58 | MHD SEPTEMBER / OCTOBER 2019
WP 3010 SERIES The WP 3010 Series power pallet truck, features all the Crown WP Series quality hallmarks in a more compact and economically priced package. It is available Australia-wide through Crown’s national branch network and its online store. Designed by Crown Europe in Roding, Germany, the WP 3010 features an AC drive motor combined with the e‑GEN regenerative braking system for performance, reliability, long battery life and maintenance-free braking. The WP 3010 Series’ short (500mm) head length, fork length of up to 1150mm, built-in charger and low weight (279kg without battery) make it nimble and convenient, perfect for back-of-truck work. However, its load capacity of 1600kg, heavy-duty gearbox, robust helical gear set, optimised steel structure and high-tensile steel forks mean it is just as rugged. The WP 3010 Series also features the same cast aluminium Crown X-10 handle with easy-to-use-ergonomic controls used on the rest of the WP Series range.
C-5 SERIES The Crown C-5 Series redefined LPG forklifts with breakthrough innovation in every detail. From its high-performance powertrain to precise cooling, ergonomic design and intrinsic stability, the C-5 sets standards across the board. The C-5 Series is designed inside and out for optimal comfort, confidence, stability, and safety so operator productivity can keep pace with lift truck performance. Operators can count on smooth handling and ease in every action, whether traveling, turning, lifting or loading and unloading. Smart use of steel, operator-forward design, intrinsic stability and easy-access controls add up to help operators get more done. Crown applied decades of expertise with counterbalanced lift trucks to ensure static and dynamic stability with the C-5. The Crown Intrinsic Stability System combines engineering, manufacturing and integrated technology to proactively ensure optimal safety and performance.
TSP SERIES
ESR SERIES The Crown ESR Series reach truck offers a range of lift heights, capacities, performance levels and operator features aligned with your required duty cycle. Operators gain confidence and performance with Crown’s intelligent Optimised Cornering Speed (OCS) system that automatically adjusts acceleration and deceleration curves for maximum safety and performance. The ESR Series provides smooth and precise control of hydraulic functions and a full range of standard and optional features designed to increase operator efficiency. With four models in three capacities and lift heights to 13 metres, the ESR Series sit-down reach truck provides the flexibility to address various rack set-ups, space constraints, environmental extremes and more. A streamlined design helps operators move in and out of drive-in racks with greater ease and efficiency.
The TSP Series very narrow aisle turret truck maximises cube utilisation throughout the warehouse. Exceptional travel speed, capacity and height combine with an industryleading, heavy-duty mast to deliver optimal performance and longterm reliability. The TSP Series turret forklift features a stronger mast, higher reach, and narrow footprint, allowing you make the most of your storage space. Crown’s exclusive MonoLift Mast provides the stability needed for operators and loads up to six stories in the air. The MonoLift mast includes strengthened boxed-in sections and heavy gauge steel. As a result, there’s less twisting and swaying than with traditional, dual upright masts. With the TSP Series, you can travel, lift and handle loads faster-and run longerfor maximum throughput.
MHD SEPTEMBER / OCTOBER 2019 | 59
MHD 2019 FORKLIFT GUIDE
Jungheinrich Australia represents a reliable, onestop shop for everything from planning and analysis to digital controls, from racking and warehouse equipment to sophisticated energy options and a global service network. Everything Jungheinrich do is focused on optimising the process flows of its customers, raising warehouse productivity and lowering operating costs. This in turn will improve collective energy balance and environmental impact. Call 131 687 or visit Jungheinrich.com.au to find out more.
EKM 202 – SMALL PARTS ORDER PICKER The EKM 202 small parts order picker is ideal for multiple applications. An efficient and safe alternative to conventional ladders, particularly for retail outlets, light maintenance applications or picking tasks without a pallet. The maximum travel speed of 8 km/h allows operators to reach the next picking location quickly. The stable mast facilitates reach heights of up to 5.30m, so items can be removed from the racking up to the third rack level, price tags exchanged or ceiling lamps effortlessly replaced. Even at great heights, the operator is always safe thanks to the automatic closing doors. It is not possible to lift without doors being closed. With the optional lock, the doors are automatically locked when the platform is raised. Only once the platform has been completely lowered, can the doors be opened again. The warning zone lights (optional) offer additional safety, especially when used with public traffic.
EKS 4 The EKS 110 is the ideal truck for order picking processes from the first to the third racking levels. With a maximum platform height of 3 m, order picking heights of up to 4.6 m can be reached. The cantilevered design enables both open and closed pallets to be picked up. Options available for the load section are fixed forks (can also be walked on with a guard (L)) or auxiliary lift (Z) for the ergonomic depositing of picked items. The 3.2-kW drive system facilitates travel speeds of up to 14 km/h. The acceleration values are also optimised to contribute towards efficient order picking. Various options packages and the load/steer angle-dependent curveCONTROL assistance system, fully exploit the strengths of the EKS 110: dynamic acceleration, safe cornering and high maximum speed, all the while ensuring best possible energy utilisation. The EKS 110 workstation is designed to make work easier.
60 | MHD SEPTEMBER / OCTOBER 2019
ECE 220/225 – ORDER PICKER The ECE 220/225 combines maximum picking performance with optimum energy efficiency and first-class operator comfort. Various options packages and the load/steer angle-dependent curveCONTROL assistance system (optional), fully exploit the strengths of the ECE 220/225. They facilitate dynamic acceleration, safe cornering and a high maximum speed, while simultaneously ensuring the best possible energy utilisation. The central operator position with its patented jetPILOT multifunctional steering wheel enables intuitive and convenient operation as in a car. Comfortable order picking is guaranteed by the easy accessibility of all controls and accessory parts. Due to the comfort features already included in the standard models and the comprehensive options catalogue, the ECE can be adapted to all applications as required. Jungheinrich has developed the easyPILOT for semi-automatic control of the ECE to optimise picking processes with maximum
performance requirements. In order to meet individual warehouse requirements, two different operating modes are available: 1. easyPILOT Control (with the Control Bar and Control Band control elements) 2. easyPILOT Follow (truck automatically follows the operator) The easyPILOT allows operators to move the truck to the next picking location without having to climb aboard and drive themselves. This not only saves unnecessary walking but also increases the picking performance significantly, particularly over short distances. Efficiency is further enhanced by driveNAVIGATION, the optional WMS connection for our ECE with easyPILOT Control.
EKX516 – HIGH REACH STACKER The EKX has been the industry benchmark for years. The Series 4 with a 48-V synchronous drive is ideally suited for the medium lift segment, while the Series 5 – equipped with an 80-V synchronous drive – guarantees maximum performance with lift heights up to 17.5 metres. The maintenance-free synchronous reluctance motors offer you completely new performance dimensions, and reduce the energy loss by up to a further 10%. Due to its low energy consumption, the EKX can operate for two shifts without a battery exchange, even in demanding applications. This enables the EKX to achieve greater throughput per hour and longer operating times. In addition, the EKX 5 has the innovative vibration damping system. This offers more safety and performance – even on uneven surfaces. The future-oriented RFID tracking increases flexibility and adapts travel speeds optimally to your warehouse topology.
ETV216I – REACH TRUCK
COUNTERBALANCE EFG WITH LI ION
The latest innovation using the company’s lithiumion technology: the Jungheinrich ETV 216i. Not only will the integrated lithium-ion power significantly improve warehouse performance – it also makes room for a truly revolutionary vehicle design. The much larger driver workplace ensures ideal ergonomic working conditions, while the perfect allround visibility offered by the ETV 216i guarantees maximum safety at all times. Its compact design and top lift speed make it even more agile moving through narrow aisles than any other reach truck. Spotlight on for the world’s first lithium-ion reach truck offering revolutionary new added value.
The manoeuvrable and versatile EFG counterbalance forklift trucks are designed for maximum performance at minimum energy consumption. The EFG from Jungheinrich with superior lithium-ion technology enables you to outrun the competition once and for all. Because highest performance, fast charging times, zero maintenance and a particularly long service life make your Jungheinrich lithium-ion batteries the most economic energy source in the long run.
MHD SEPTEMBER / OCTOBER 2019 | 61
MHD 2019 FORKLIFT GUIDE
Vin Rowe’s background is in agricultural machinery distribution. Operating since 1961, the organisation is now moving into the materials handling sector with a new venture with Zowell, a Chinese manufacturer of electric materials handling equipment.
XE 15/20 Electrical Stacker series • Main use for single face pallet or non-pallet loads • For stacking and transporting in warehouses, docks, factories etc • Compact size, reduced energy costs, nil pollution and extremely low noise levels • Load capacities to 2,000 kg • Lifting heights to 5.5 metres • Minimum ground clearance 30mm • Turning radius 1626mm to 1683mm • Travel speed (unloaded 6km/g and loaded 5.2 km/h)
XP Electric Pallet Trucks XP series pallet truck features outstanding performance, comfortable operation, low operation and maintenance costs and ideal choice for material handling in supermarkets, warehouses and workshops. • Safety design meets international standards • Long working time per charge due to advanced AC driving motor and high performance industrial battery • Four models available • Load capacities 1500 to 3000kg • Lift Height 125mm to 205mm • Polyurethane tyres
XR 15/20 Electric Reach Stacker • Not only economical but provides perfect Warehouse storage solutions • Easy to turn in limited space • Available with bale clamp,stabiliser,tilting fork attachments • Also available with ultra-low mast and wider fork carriage Load Capacities to 2000 kg • Lifting Heights to 5.5 metres • Minimum ground clearance 55mm • Turning radius1725mm to 1874mm • Travel speed (unloaded = 5.6km/h-loaded4.8 km/h)
03 5623 1362 vinrowe.com.au info@vinrowe.com.au 62 | MHD SEPTEMBER / OCTOBER 2019
ColbyRACK is designed and made in Australia
AUSTRALIAN
PROUDLY DESIGNED, ENGINEERED AND MADE HERE Colby has been manufacturing high-quality storage products in Australia for over 50 years. Our ColbyRACK system is designed with local smarts and built with local steel and muscle. We’re Australian, we have a proud history, and we’re going to be around for a long time to come. When you buy Colby you’re buying Australian. Another ColbyRACK advantage.
ColbyRACK® smarter, safer, stronger storage
1800 COLBY 1 WWW.COLBY.COM.AU
MHD MATERIALS HANDLING
REDUCE OPERATIONAL COSTS WITH AGVS Philip Makowski at Dematic offers his tips for optimising and reducing costs in food and beverage logistics.
T
he importance of optimising productivity and reducing costs in supply chains has never been greater for manufacturers across Australia and New Zealand.
While labour costs continue to rise and drive the need to increase productivity, these cost pressures are being compounded like never before by the increasing concentration of the grocery retail market, and increasingly price conscious consumers. As a result, more and more local companies are turning to automated guided vehicles (AGVs), especially in the food and beverage (F&B) sector, to help improve productivity and reduce operational costs in their manufacturing and warehousing facilities.
THE CHALLENGES FACING MANUFACTURERS IN FOOD AND BEVERAGE
Dematic AGV accessing the top level of pallet racking at Oxford Cold Storage.
64 | MHD SEPTEMBER / OCTOBER 2019
Grocery retailers are currently in a unique position of strength and this has major implications for F&B manufacturers. In Australia, the market share of the two top grocers stood at 68 per cent in 2017-18 according to IBISWorld, which means it is one of the most concentrated grocery retail markets in the world. Major grocers are also consolidating market share in liquor retail. Australia’s two major grocers – with their big box liquor outlets and aggressive pricing – now control 67 per cent of the alcohol retail market. The grocers have leveraged their position to drive strong agreements with suppliers, enabling them to offer low store prices that smaller outlets find difficult to compete with. They are also using their position to drive their own private label ranges, further cutting manufacturer’s margins. In a highly competitive, consumerdriven market it is imperative for F&B manufacturers to get the right
product in the right quantity at the right time to customers, more so than in any other industry. Grocers are less tolerant of missed delivery windows or incorrect products that lead to out of stock store shelves, imposing penalties for late or incomplete deliveries. Manufacturers need to ensure there are no bottlenecks in their operations – such as an operator leaving a pallet at the end of a palletising line – which can lead to production lines being stopped. In turn they need to ensure they have the correct product in the required stock quantity, and that orders are complete and accurately despatched in a timely manner. The challenge many F&B companies are facing to reduce costs is compounded by increasing labour costs and the growing difficulty in finding and retaining workers who want to work in warehouses and distribution centres (DCs), especially in cold storage facilities.
THE IMPLEMENTATION OF AGVS IN THE WAREHOUSE F&B manufacturers are investing in AGVs to drive productivity gains in their warehouses and distribution systems. They’re also switching from manual forklifts to automated operations with AGVs to reduce operational costs and reduce reliance on scarce labour. These companies are implementing AGVs in their warehouses to cover numerous applications. Dematic’s range of AGVs provide pallet transport within and between production and warehousing, storage and retrieval from rack – including heights up to 10.7m, double-deep, narrow aisle, drive-in and mobile rack – and block stack operations, pick face replenishment and truck loading, within a variety of environments including outdoors
MHD MATERIALS HANDLING
and freezer facilities. AGVs can, and typically do, work alongside human operators, and as such have safety features in place, with sensors to identify and stop when in proximity to humans or machinery that cross their paths. When sensors detect an object in the guide path, the AGV first slows and then stops, depending on the distance to the object. These same sensors also assist in navigation. For example, they help determine the exact positioning for picking/putting objects within a rack or other location. Further, costs savings and reduced warehouse operation disruptions are gained because unlike a forklift operator, AGVs can operate around the clock without needing breaks, and can run at night with the lights out in a freezer warehouse, which has a temperature of minus 25 degrees Celsius. The addition of AGVs in the warehouse also eliminates human error. Replacing manual forklifts with AGVs increases reliability, improves OH&S and eliminates product damage, increases operational visibility and traceability, and maximises despatch and shipping accuracy.
IMPROVED OCCUPATIONAL HEALTH AND SAFETY Occupational health and safety (OH&S) is a significant priority for F&B manufacturers due to the movement and storage of heavy pallet loads, potential breakages and spills, which all pose dangers to warehouse operators. Apart from the human factor, lost time due to injuries are becoming increasingly costly to operations. And with an ageing workforce the need to address OH&S challenges is increasing. Thanks to their safety and accuracy features, AGVs create a safer working environment with no accidental collisions and zero damage to loads. They strictly comply with and exceed the demands of international safety standards. AGVs are also suitable for materials handling applications in harsh environments such as cold storage.
INCREASED VISIBILITY AND TRACEABILITY Food Standards Australia New Zealand (FSANZ) requires food to be tracked through all stages of production, processing and distribution. The aim is to enable quick and effective corrective action in the event of something going wrong, such as product recall, and to prevent contaminated product from reaching consumers. Supply chain management systems need to capture sources of raw materials, additives and other ingredients and all other inputs, and provide product batch or lot identification, production and expiry dates. In addition to meeting Food Standards Code requirements, F&B companies recognise that product traceability systems help protect their brands by enabling a rapid and effective response to any incident. Apart from batch and lot tracking, warehouse management systems need to effectively manage inventory and FIFO (First In, First Out) rules; in many cases, major grocers will only accept consecutively numbered batches and expiry dates. By fully automating transport and storage tasks, and fully tracking all movements, AGVs provide full visibility of operations and complete traceability of product from production through to warehousing and despatch.
FLEXIBILITY AND SCALABILITY F&B companies’ operations can change and they need systems that provide them the flexibility to be able to adjust warehouse operations accordingly. AGVs are a flexible automation solution and can scale or flex as required. Adding new machines or reallocating AGVs from one area of a facility to another is quick and easy. The AGV management software is shared so that changes can easily be made to one machine and replicated to all, and new machines can be operational in minutes after arriving at a facility. Because today’s AGVs use laser and vision-based navigation, modifying or changing a guide path is an easy operation. Simple software changes to the fleet management software can allow guide paths to easily be changed or modified. Changing the guide path only needs to be done once, and all the machines in the system get the change. Redeploying AGVs to different locations is equally easy. This allows AGVs to be shared among multiple facilities or areas within a facility to alleviate seasonal demands. AGVs can significantly transform the efficiency and productivity of F&B manufacturers logistics operations, they provide long term benefits that will enable F&B companies to remain competitive, now, and in the future. ■
A fleet of Dematic AGVs moving through a distribution centre.
MHD SEPTEMBER / OCTOBER 2019 | 65
EXHIBITION SPACE NOW ON SALE 1ST - 3RD AP R I L 2 02 0 ME LBOUR NE CO NVENT IO N & EXHI BITI O N CENTRE
SUSTAINABILITY | AUTOMATION I N D U ST RY 4 . 0 | E - CO M M E R C E
SUPPO RTING S PON SOR S
ASS O CIATIO N PA RTN ER S
MHD WOMEN IN INDUSTRY
CHAMPION FOR SAFETY Kristen Stanford took home the Safety Advocacy award at this year’s Women in Industry Awards.
MHD sits down with Kristen Stanford, the winner of the Safety Advocacy Award at this year’s Women in Industry Awards to discuss forklift hazards, culture and how to build better relationships.
K
risten Stanford, Safety Manager at CSR Limited’s followed in her father’s footsteps with regards to her career. “My father always worked in safety, so it’s been a big part of me my entire life,” she says. She recalls seeing her father do a great job in making sure that people went home safely after a day’s work and as far as she can remember wanted to follow his lead. “I can thank my family for my passion for safety. I have always wanted to work with people and ensure that they are as safe as they can be,” she says. Straight out of school, Kristen 68 | MHD SEPTEMBER / OCTOBER 2019
completed a Certification 4 Diploma and Advanced Diploma in Occupational Health & Assessment. “My first job was working in the mines in Western Australia where I learnt a lot about safety in industry,” she says. Kristen is currently Safety Manger for Queensland and Northern Territories at CSR Limited, working at the organisations Coopers Plains Operations and Logistics site main site dealing with manufacturing, logistics and trade of plasterboard. She has introduced a number of different safety initiatives at the site to promote a more open culture around reporting safety incidents. “One of the biggest problems was a lack of reporting, people were scared to report incidents that took place both at work and outside of work,” Kristen says. In her role at CSR, Kristen has introduced weekly hazard walks where upper management, supervisors, OH&S representatives and employees identify hazard areas in each work area. “This has been a really great success for building relationships across the business.
“
Being a Safety Manager is more than a job, it’s a vocation. I have earnt the respect of the people in my team through making my behaviour visible, building strong communication, and maintaining a proactive approach. I am very passionate about what I do, I love my job and I am continually striving for safety excellence.
”
MHD WOMEN IN INDUSTRY People historically had been fearful of management but now everyone gets together to point out some safety concerns and hazards,” she says. One way that Kristen has found that workers are responsive to improving safety is when she throws the solution back at the relevant employees who work in that specific area. “At CSR, we want to work together to solve the problem. Usually the people who work in that environment will have some great ideas about how we can make it safer,” she says. At a recent CSR Safety Conference in Kingscliffe in NSW, Kristen introduced an Amazing Race event. “I organised a race around the Cliffe for 100 personnel which involved completing a range of challenges to identify hazards in and around the hotel, giving everyone an understanding on what hazards are and how to identify them moving forward,” she says. The activity was well-received and Kristen is hoping to introduce these kinds of initiatives more regularly, she says. Another initiative is Kristen is proud of is the introduction of a Traffic Management team to eliminate pedestrian and forklift interaction. “Separation between forklifts and employees is so important when it comes to safety, especially when it comes to the kind of materials we move,” she says. One area of work that she is particularly proud of at CSR is the significant change in the workplace safety culture after involving workers in safety initiatives, developing and implementing a positive reporting process “There is now a high level of
Kristen says she was thrilled when she was announced as the winner of the Safety Advocacy Award and celebrated with her colleagues. importance on safety beliefs, values and attitudes and this has improved the workplace health and safety performance,” Kristen says. With regards to her nomination at the Women in Industry Awards earlier this year, Kristen says she was shocked. “It was a bit of a shock when I found out about the nomination, then even more so when I found out I was a finalist and then when my name was called out as the winner, I burst into tears,” she says.
Kristen says she is very thankful to the team at CSR for supporting her and also for nominating her. “Being a Safety Manager is more than a job, it’s a vocation. I have earnt the respect of the people in my team through making my behaviour visible, building strong communication, and maintaining a proactive approach. I am very passionate about what I do, I love my job and I am continually striving for safety excellence,” she says. ■
MHD SEPTEMBER / OCTOBER 2019 | 69
MHD PROPERTY FOCUS
INLAND RAIL AND THE IMPACT ON LOGISTICS STRATEGY Carl Knaggs, National Director, Strategic Advisory at Colliers International discusses the impact of Inland Rail on the future of logistics in Australia.
70 | MHD SEPTEMBER / OCTOBER 2019
I
nland Rail is a significant investment in Australia’s freight future which moves toward a national freight strategy by connecting regional supply chains to domestic and international markets. Comprising 13 individual projects and spanning more than 1,700 km across Victoria, New South Wales and Queensland, Inland Rail is the largest freight rail infrastructure project in Australia. Construction of Inland Rail commenced in late 2018 and it is expected to be fully operational sometime in 2025. Around two thirds of Australia’s export earnings come from regional industries including agriculture, tourism, retail services and manufacturing. Inland Rail will improve the volume, efficiency and the cost of transporting those products and services to capital cities and global markets. This would help to ensure growth in Australia’s regional exports and a reduction in costs, particularly for long haul bulk commodities and products. The impact of Inland Rail will be far reaching and is expected to generate significant investment into regional Australia. This is due to the nature of rail transportation which typically
has lower costs and better service efficiencies than road transportation. These efficiencies will cause businesses to reassess their supply chain and logistic strategies, including the location of distribution centres (DCs) and the choice between centralised or decentralised models. Efficiencies associated with Inland Rail may also open new market opportunities to freight and supply chain operators, producers, manufacturers and property developers. Examples of the key users likely to benefit from Inland Rail include Woolworths; Coles; Linfox; Toll; Graincorp; Bluescope; and Visy. We anticipate that a range of other providers in cold-store warehousing, commodity storage and processing, distribution centres, freight handling facilities, container storage and rail maintenance will also benefit. Inland Rail will also impact distribution structures such as the spatial layout of the freight transport and storage system used to move goods between production and consumption locations. Decisionmaking on distribution structures, including DC locations will influence logistical costs and service levels
MHD PROPERTY FOCUS
“
Comprising 13 individual projects and spanning more than 1,700 km across Victoria, New South Wales and Queensland, Inland Rail is the largest freight rail infrastructure project in Australia.
” Inland Rail will help to generate significant investment in regional Australia. along the supply chain. Logistical costs include transport costs, inventory costs and warehousing costs (handling, storage). The trade-off between logistical cost categories will influence the location and optimal number of DCs and determine how the potential relocation of these facilities may benefit from co-location with Inland Rail. This will result in the formation of strategic locations along the Inland Rail alignment representing the most cost-
effective locations relative to production, value adding processes and destinations. Intermodal hubs will be created within these areas. Furthermore, with associated increased demand and cost savings by occupiers, we may see an uplift in land values at these locations. Colliers International anticipates that the regions most likely to benefit from Inland Rail are Toowoomba, Willowbank, Bromelton and Acacia Ridge in Queensland, Tottenham in Victoria and Parkes in New South Wales. There is already significant interest in the NSW regional city of Parkes, an area which represents the intersection of Australia’s major north-south and east-west railways. Pacific National has already committed $35 million to develop its Parkes logistics terminal, which will complement its plans to build a state-of-the-art intermodal terminal at St Marys in Western Sydney. Investment and commitment to Inland Rail as part of a national freight strategy has allowed Pacific National to invest further in Western Sydney and in turn, help drive modal shift from road to rail and connect regional Australia with the ports of Brisbane, Botany, Melbourne and Freemantle. We also anticipate a reduction in haulage costs as new market opportunities emerge and industrial occupiers begin to look to the middle suburban rings and outer regional areas supported by Inland Rail. This stronger consumer and occupier demand should lead to an increase in land values and industrial property performance over the long-term. ■
Inland Rail will connect regional supply chains to domestic and international markets.
MHD SEPTEMBER / OCTOBER 2019 | 71
MHD FROM ALC
More than 70 per cent of Australia’s agricultural produce is exported.
STATES WILL SHAPE STRATEGY’S SUCCESS
T
he release of the National Freight and Supply Chain Strategy by Ministers attending the Transport and Infrastructure Council (TIC) meeting in Adelaide on 2 August was an important moment for Australia. For the first time, Australia now has a clear set of actions for improving supply chain efficiency which all governments nation-wide have committed to pursue. However, although we have agreement, we still need action to make certain that the Strategy becomes what ALC has always said it must be – a dynamic blueprint that delivers tangible results for Australia’s logistics operators. The TIC meeting also resolved to have all governments return to the next meeting scheduled for November with implementation plans, setting out the infrastructure investments and regulatory reforms they will pursue to give effect to the National Action Plan released in conjunction with the Strategy. In ALC’s view, these implementation plans must clearly spell out how, when and by whom actions will be delivered, so that progress can be measured and all jurisdictions can be held to account for the delivery of their undertakings.
72 | MHD SEPTEMBER / OCTOBER 2019
THE NEED FOR ACTION IS CLEAR It is impossible to understate how central the successful implementation of this Strategy will be to sustaining our standard of living in Australia. The price we pay for consumer goods, our international competitiveness, continued growth in exports and the liveability of our communities are all inextricably linked to our ability to move freight efficiently, safely and cost effectively. Achieving this is already a challenge that logistics operators face every day – and the challenge is only going to grow. Research undertaken to support the development of the Strategy shows that the size of Australia’s freight task will increase by 35 per cent between now and 2040. This is partly due to growth in Australia’s population, but also to changing consumer behavior and expectations. The growth in e-Commerce is a particularly notable factor, with the number of purchases growing by 20.2 per cent in just one year, between 2017 and 2018. The relative decline of local manufacturing means we are bringing in more goods to meet the day-today needs of domestic consumers and businesses. Some of Australia’s largest
KIRK CONINGHAM ALC CEO
imports by value are motor vehicles, computers and household appliances, refined petroleum and medications. At the same time, growing markets for Australian goods, particularly in the Asian region, are driving demand for our exports – and placing pressure on our freight networks as producers seek to get goods from point of origin to overseas markets as efficiently as possible. At present, 77 per cent of Australia’s
MHD FROM ALC
agricultural produce is exported, as is 75 per cent of our coal and 98 per cent of our iron ore. In total, our exports account for 21 per cent of Australia’s GDP. Sustaining growth in exports is going to be crucial in allowing Australians to maintain the standard of living to which they have grown accustomed, as world population growth, technological change and an increasingly competitive global trading environment all combine to challenge our traditional ways of doing business.
NATIONAL ACTION PLAN The National Action Plan that underpins the Strategy identifies four key focus areas, as follows: • Smarter and targeted infrastructure investment; • Enable improved supply chain efficiency; • Better planning, coordination and regulation; and • Better freight location and performance data. As the lead jurisdiction on the development of the Strategy, the Commonwealth has already undertaken to several new significant initiatives. In particular, ALC has welcomed its focus on the establishment of a National Freight Data Hub and the commitment to developing a set of National Planning Principles, both of which are initiatives that have been long-standing priorities for many in the logistics sector. The Commonwealth Government has also advised that as part of its implementation plan, there will be updated mapping of key freight routes and hubs. The National Action Plan also contains commitments from the Commonwealth to several other notable actions, including: • B enchmarking performance of key import and export supply chains against international competitors; • D eveloping a national framework for High Productivity Vehicles (HPVs); • C onvening a National Urban Freight Planning Forum in 2019/20; and • D eveloping a Transport Sector Skills Strategy.
STATE AND TERRITORY GOVERNMENTS As has been consistently noted throughout the development of the Strategy, it is a ‘national’ initiative, as distinct from a Commonwealth one. Although the Commonwealth has taken the lead to date, we are now at a point where state and territory governments need to match their support for the Strategy in-principle with real commitments to actions that will support its effective and efficient implementation. Consequently, it will be imperative for the implementation plans that states and territories present to the November 2019 TIC meeting to contain concrete deadlines for achieving actions, commit to real investments in freight infrastructure and regulatory reform, and clearly identify the relevant Minister or agency responsible for delivering each action. In ALC’s view, it is not acceptable for governments to simply present a list of existing infrastructure projects, or point to their existing freight plan and claim it is an ‘implementation plan’ for the National Strategy. The logistics industry has made a considerable investment in supporting the development of the Strategy, working with governments at all levels to identify the right priorities and offering suggestions for genuine policy reform.
It is not unreasonable for our industry to expect a return on that investment by requiring that the implementation plans to be tabled by state and territory government clearly spell out specific actions under each of the four key areas set out in the National Action Plan.
GOVERNMENTS MUST CONTINUE TO ENGAGE INDUSTRY ALC is especially pleased that the Strategy commits to working with the industry throughout the implementation phase. For that process to succeed, it is critical this industry engagement is regular, meaningful and robust, so that industry’s concerns are listened to and acted upon by governments at all levels. In particular, governments must address the freight needs of our exporters, including the agriculture and resource sectors, given the centrality of these supply chains to Australia’s continued prosperity and international competitiveness. Providing implementation plans that commit to concrete actions, real investment and proper lines of accountability for delivering outcomes will be essential if governments and industry are to ensure their collaborative efforts to date result in a Strategy that delivers for the industry – and for consumers. ■
Australia’s freight task is set to increase by 35 per cent between now and 2040.
MHD SEPTEMBER / OCTOBER 2019 | 73
MHD NEWS FROM SCLAA
FOSTERING CROSS-BORDER RELATIONSHIPS T
AMANDA O’BRIEN CHAIRMAN SCLAA
he SCLAA has just completed a very successful trade mission to China. Back in November 2018 we were delighted to be the first Association to enter into a significant Memorandum of Understanding with The Australasian International Trade Association (AITA) with the implementation of the “Belt and Road Australia-China Supply Chain and Logistics Alliance”. Given the recent media coverage and poor assessment of what these alliances mean to the wider business community it has never been more important than it is now to forge closer partnerships with our number one trading partner China. The Alliance will serve its members and facilitate Australia and supply chain and logistics development and cooperation. This will include a wide range of services including conferences, exhibitions, business consultation, overseas visits, training programs and will enhance communication amongst alliance members including functional government departments, industrial associations, institutions and corporate enterprises. In China the SCLAA, with AITA, also signed additional significant Memoranda of Understanding (MOU) with other peak bodies including the Tianjin Transportation and Logistics Association and the TCEA (Tianjin Cross Border E-commerce Association) as well
Guangzhou Port.
74 | MHD SEPTEMBER / OCTOBER 2019
as many others where an Alliance of partners will foster the development of knowledge across borders and increase potential trade with business’ in Australia. There were meetings with the Hebei Federation of Industry and Commerce, the Tianjin Trade Promotion Council and a conference at Cangzhou Municipal Government as well as discussions held with the Guangzhou Port Authorities and the Zhanjiang Government. A comprehensive briefing pack will be available to all SCLAA members in the coming weeks. It is significant to note that China is to top 50 per cent of global GDP by 2040 and drive 40 per cent of the world’s consumption. A statistic too hard to ignore is that the Guangzhou port handles 15 million TEU’s per year as opposed to our biggest Port; Port of Melbourne that handles 2.5 million TEU’s and may reach capacity in the next 20 to 30 years. Significant development is continuing in the Guangzhou Port with an extended logistics park facility that covers over 340,000 square metres and will greatly enhance the Port’s ocean-rail transportation capability, will have a positive impact on the Port’s container throughput and will be operational by 2020. There is significant development and growth in the cruise ship industry and the ports, that will greatly enhance tourism, and will start to receive cruise ships in November
of this year. Perhaps in Australia we can see some infrastructure development in our ports taking shape and much needed rail projects commencing. The tour and meeting with officials in Huanghua Port will undoubtedly give the SCLAA a solid platform to promote collaboration with Australian industry. The Port is expanding rapidly in size and in the functional orientations of bonded processing. The comprehensive free trade zone of Huanghua Port is located in Cangzhou Bohai, a new area of Hebei abutting Huanghua Port. By means of attracting domestic and foreign manufacturers and trade circulation, enterprises will form a fully equipped logistics infrastructure platform. The Huanghua Port is not only the most convenient and rapidly transported port in mid and west of China, there are plans to build an additional 209 berths. They have built 200,000 tons of deepwater shipping lanes and Internationally they have built the shortest Eurasia artery between Huanghua Port and Rotterdam in the Netherlands so the Huanghua Port is now called the new artery bridgehead of Eurasia. SCLAA also met with Bureau Heads of Tianjin Airport Economic Area where multiple national strategic opportunities are available. The Tianjin Airport Economic Area Committee manages the areas which are part of the Tianjin Port Free Trade Zone, the Tianjin Airport Economic Area and the Harbour Economic Zone. Total management area is 284 km with the Tianjin Port Free Trade Zone 6.2 km, the Tianjin Airport economic area 81.2 km and the Harbour economic zone 200km. Tianjin is one of the four cities that report directly to the Central Government and are the centre of economic growth in Northern China. More than 150 Fortune 500 companies invest here and over 30,000 enterprises are registered in TAEA. So far more than 1700 enterprises are registered in Tianjin Aviation Logistics Park. They include Tianjin Airlines, DHL, FedEx, TNT, COSCO, SINOTRANS and SF Express just to name a few. In Beijing the Welcome Banquet in Honour of the SCLAA and AITA Trade delegation was held with the attendees including Key Chinese Central Governments and NGOs. The dinner was aimed at inviting more key organisations to join the alliance and provide networking opportunities for interested parties from Australia, New Zealand and China in logistics, trade and beyond. Making a key note address, it was with great pride that the SCLAA presented certification to new joiners of the
Left to Right: Mr Geoff Matthews Consul (Political/Economic), Mr Don Nardella, Mr Michael Guo (CEO of AITA) Mr Chris Halford (Deputy Consul-General), Mr Paul Sanda (Deputy Consul-General (Commercial) Senior Trade Commissioner, Ms Amanda O’Brien (Chairman SCLAA), Ms Sue Tomic (Treasurer SCLAA)
“
We were delighted to be the first Association to enter into a significant Memorandum of Understanding with The Australasian International Trade Association (AITA) with the implementation of the Belt and Road Australia-China Supply Chain and Logistics Alliance.
”
alliance including the China Communication & Transportation Association, the China Vegetable Marketing Association International Exchange and Cooperation Committee and The Chartered Institute of Logistics and Transport, China. The SCLAA and its delegates also met with the Australian Trade and Investment Commission in Guangzhou China The SCLAA delegation and AITA were delighted to meet with Mr Paul Sanda, Deputy Consul-General (Commercial) Senior Trade Commissioner; Mr Chris Halford, Deputy Consul-General; and Mr Geoff Matthews Consul (Political/Economic) from the Australian Government to discuss issues concerning the Australian business community and, more importantly, the opportunities given the current economic climate and critically important trade relationship between China and Australia. An Information and Briefing Pack on the trade visit will be made available to our members and will include information on opportunities that have become possible due to the alliances we have forged with our largest trading partner. It is also timely to remind anyone who would like to nominate or be nominated for the prestigious 59th Australian Supply Chain & Logistics Awards, that nominations close on 6 September. A number of international delegations will be attending the Awards on Friday 22nd November and this will provide valuable networking opportunities. Information on the Categories and Criteria as well as the Awards Gala Dinner are linked here can be found on the SCLAA website. ■ MHD SEPTEMBER / OCTOBER 2019 | 75
ASCI APPOINTS CHAPTER PRESIDENTS The Australasian Supply Chain Institute (ASCI) is continuing its strategy to bring professionalisation to the supply chain domain and, as such, has appointed new Chapter Presidents in Victoria, New South Wales, Queensland and Western Australia.
A
SCI Chapter Presidents are volunteer-based roles. New appointments include:
MATTHEW JACKSON, VICTORIAN PRESIDENT Matthew is a leader within the Supply Chain and Operations practice of Deloitte focusing on Manufacturing & Industry 4.0. He has over 18 years as an operations lean practitioner across Australia, North America and Europe. His particular skills are in the design and implementation of large scale transformations through coaching and mentoring teams in both service and manufacturing environments. Adept at engaging both front line and C-level whilst motivating them to embrace and generate operational improvement. Able to tackle change management issues effectively and in real time. Expertise and pragmatism 76 | MHD SEPTEMBER / OCTOBER 2019
have combined to deliver a string of consistently successful programs that have produced significant benefits in quality, cost and delivery.
BRENDAN O’KEEFFE, NSW CHAPTER PRESIDENT Brendan has over 20 years of recruitment experience across supply chain, operations for ASX listed organisations and SMEs. With demonstrated expertise in executive search and talent management, he has become a trusted adviser for his service delivery and long lasting partnerships within the industry. Brendan has worked in partnership with change management programs and is actively involved in industry networks where he actively contributes and provides insights and market knowledge . He sees this as a competitive benefit to organisations who are serious about these initiatives, particularly in the current challenging times. This includes his history with APICS and now ASCI as a supporter of the organisation and sponsorship of its endeavours. Brendan has a passion for the professional sector that he partners with and is committed to supporting professionals in their career’s but also making a key contribution to industry for a more sustainable future.
INDRASEN NAIDOO, WA PRESIDENT Indrasen has drawn on his dual academic pathways of finance and industrial engineering to shape a 25-year career in supply chain in
South Africa and Australia. He has held executive leadership roles in organisations including De Beers, Mondi Group, FirstRand Bank and Roy Hill Holdings as well a non-executive founding director role with the South African Supplier Diversity Council. His leadership of transformation initiatives draws on his skill a leadership coach, to facilitate dialogue that reshapes mindsets and beliefs to reframe business models, embrace technology innovation and adapt behaviours to establish a predictable future of thriving at a system and network level. Indrasen holds Bachelor of Commerce, Chartered Management Accounting, Master in Business Leadership, Master in Engineering qualifications and is currently engaged in doctoral research focussed on integral supply networks in a digital economy. He has certifications as Member of International Coach Federation, Member of Chartered Institute of Purchasing and Supply and Prosci Change Management.
JAMES SCOTLAND M. INT. MGT., G.A.I.C.D., F.I.L.M, QUEENSLAND PRESIDENT Currently engaged by The Australian Industry Group (AiG) and the Federal Department of Industry, Innovation and Science as national Supply Chain facilitator, James’ role is to assist and enable SMEs to prepare for, and to access Global Supply Chains. Current clients include Volvo Group Australia,
MHD FROM ASCI
Shell QGC, Bustech Australia and the Australian Organics industry. The focus of the role is in the digital integration along and across the supply chain continuum. James has management consulting experience, corporate trainer with companies such as BHP and Rio Tinto and CEO of a Vocational Training organisation. Prior, James was Group Regional Manager, Mayne Nickless Express Freight Group (now Toll) based in Darwin after a career in many roles across the organisation. These roles were 3PL operations, including running 24-hour operations of air
freight, road freight and couriers, and included building relationships with clients and working across organisational silos with clients and within Mayne Nickless. In NT, James was Chairman of the International Business Council (IBC), Chairman of Australian Industry Defence Network (AIDN-NT), board member of the NT Chamber of Commerce and Industry (NTCCI), Chairman of the Oil & Gas network and President of the Australian Institute of Management NT (AIM-NT).
EDDY QURESHI SOUTH AUSTRALIAN AMBASSADOR Eddy is a contracts and procurement specialist with over 10 years’ experience in contract administration, risk strategy, contract analysis and negotiations for IMC Hospital (300 bed, $200M revenue, 400 suppliers,14,000 items), and Procter & Gamble (7 markets, $150M revenue, 20 suppliers, 100
“
This will be a first in Australian history, shaping the cornerstone of our industry and continuing the legacy and rich history of our Institution when our predecessors brought APICS to Australia in the 1970s to set best practice standards for inventory management.
to working with them to realise the vision of Supply Chain Management becoming a formal profession in Australia. This will be a first in Australian history, shaping the cornerstone of our industry and continuing the legacy and rich history of our Institution when our predecessors brought APICS to Australia in the 1970s to set best practice standards for inventory management,” he said. ASCI is working to set the minimum knowledge and education requirements for supply chain professionals. It has already developed a recognised minimum
items). He has led negotiations of complex contracts underscored by 150+ contracts, valued at 500$M+, involving multiple categories (medical equipment, beauty products, finished food products, supplies and maintenance). Eddy holds an MBA from the University of Warwick, and a Bachelor of Electrical Engineering. According to Ivan Imparato, CEO, ASCI, Chapters have always been an important component to the ASCI organisational structure for the past 50 years. Now, more than ever, there is an enormous amount of work to strive towards the ASCI vision. “I’d like to take this opportunity to thank our outgoing Chapter Presidents including Henry Santamaria and David Hogg who have both dedicated their expertise into developing sustainable programs and teams within their states. “Congratulations to our new Chapter Presidents and look forward
standard of a supply chain body of knowledge; an ethics management program; and is developing an industry risk management program, and a continuous professional development program, including its annual ASCI2019 conference. In 2018, ASCI launched the evidenced-based Practitioner Registration process in logistics, operations and procurement, available to the entire supply chain community. This registration will become a pre-requisite for practitioners in the Supply Chain domain to be able to register as Professional Supply Chain Managers, after the successful completion of an examination, entitling them to the designation PrSCM. ASCI is working closely with its corporate members; collaboration partners and sponsors to provide a platform for research and development opportunities with the tertiary, government and industry sectors. ■
”
MHD SEPTEMBER / OCTOBER 2019 | 77
MHD THE LAST WORD
F
SPOTLIGHT ON REGULATORS
reight & Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and the Container Transport Alliance Australia (CTAA) have expressed ongoing concerns to state and federal regulators about spiralling Infrastructure Surcharges levied by all stevedores across Australia’s containerised ports. In what started as small fees paid by transport operators for the mandatory access to the Vehicle Booking Systems, has now blown out to be a significant cost impost on exporters and importers who not only pay the per container fee, but also additional administration charges by intermediary logistics
service providers who are forced to pay the charges to the stevedores. Stevedores have attributed the need for an Infrastructure Surcharge with a myriad of reasons including the need to recover costs of new capital equipment and high rent charged by privatised port operators. It is normal business practice to deal with operating costs by offsets through process improvements, absorbing these or passing them on through negotiated price increases with contracted clients. In the case of stevedores, our argument is that any necessary price increase should be negotiated with
their commercial client being the shipping line. Instead, stevedores have conveniently identified Infrastructure Surcharges as a simple way to remain profitable, to offset revenue forgone due to more competitive stevedoring contracts negotiated with shipping lines. While there is no suggestion of collusion between the parties, it appears to be a case of ‘follow the leader’ with each stevedore taking it in turn to ratchet up the pricing as outlined in the below table (current as at August 2019). By PAUL ZALAI, Co-founder and Director, Freight & Trade Alliance (FTA) ■
STEVEDORE
PORT
INFRASTRUCTURE CHARGE
DATE COMMENCED
Flinders Adelaide Container Terminal
Adelaide
$28.50 per full container + GST
1-Jul-18
Australian Amalgamated Terminals (AAT)
Brisbane
$38.70 per full container + GST
8-Nov-18
DP World Australia
Brisbane
$65.15 per container + GST
1-Jan-19
Hutchison Ports
Brisbane
$50 per full container + GST
19-Aug-19
Patrick
Brisbane
$71.50 per laden container + GST
4-Mar-19
DP World Australia
Fremantle
$8.22 per container + GST
18-Sep-17
Patrick
Fremantle
$7.50 per laden container + GST
12-Mar-18
DP World Australia
Melbourne
$85.30 per container + GST
1-Jan-19
Patrick
Melbourne
$82.50 per laden container + GST
4-Mar-19
Victoria International Container Terminal (VICT)
Melbourne
$85.00 per full container + GST
1-Mar-19
DP World Australia
Sydney
$63.80 per container + GST
1-Jan-19
Hutchison Ports
Sydney
$35.84 per full container + GST
1-May-19
Patrick
Sydney
$77.50 per laden container + GST
4-Mar-19
Data collated courtesy of the Australian Peak Shippers Association (APSA), Freight & Trade Alliance (FTA) and the Container Transport Alliance Australia CTAA)
78 | MHD SEPTEMBER / OCTOBER 2019
MELBOURNE
1-3 APRIL 2020
Australasia’s largest dedicated bulk handling conference & exhibition
WANT SOLID LEADS? B U LKHAN DLI NG EXPO.COM.AU
IN CONJUNCTION WITH
Scan the code to get more details about exhibiting opportunities.
Supporting Sponsor
Media Partners AUSTRALIA
Platinum Sponsor
MHD REVIEW
AUSTRALIA
Supply Chain Solutions
Association Partner
REVIEW
& INFRASTRUCTURE
EVERY DAY, MORE AND MORE BUSINESSES ARE FINDING A REASON TO SWITCH TO LINDE “FLEET MANAGEMENT” PHARMACARE LABORATORIES
“EFFORTLESS OPERATION”
“HUGE RENTAL FLEET”
MOOSE TOYS
VANSTONE PRODUCE
“STANDOUT PERFORMANCE” FUJITSU GENERAL AUSTRALIA
“42% FUEL SAVINGS” LOSCAM
“EFFICIENCY & RELIABILITY” SHIPPING CONTAINER POOLS
“THOROUGH REFURBISHMENT PROCESS” ALLIANCE TRANSPORT
“ VALUE FOR MONEY” FORKLIFT IT
“SAFE, ROBUST & RELIABLE” CTI LOGISTICS
“TECHNICALLY INNOVATIVE” UNITED LETTUCE
“EXCEPTIONAL NEW RENTAL FLEET” SODEXO
“SERVICE & SUPPORT” WINNING GROUP
“BRILLIANT QUALITY” BEST SHEDS
“SUPERIOR SAFETY & ERGONOMICS”
“LOWER EMISSIONS” NAPIER PORT
VELLEX
“OUTSTANDING USED FLEET” PARAMOUNT LIQUOR
FIND YOURS AT LINDEMH.COM.AU Linde provides new, used and rental forklift customers with the unique combination of performance, safety, reliability, efficiency, productivity, ergonomics, service, fleet management tools and support every business wants. Just as importantly, Linde give you the Power to Choose, so that you can select equipment which meets your requirements from both an operational and commercial perspective – not just one or the other. Call 1300 135 463 now to discover how the switch to Linde will help your business.
1300 135 463 lindemh.com.au
Powered by