Flexibility is the new black

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.

The 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 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

(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.

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. ■

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

Siloing specialist knowledge away from the wider market only weakens the sector, Nishan says. 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 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