MHD November 21

NOVEMBER 2021

COVER STORY

OPTIMISING NEW DC FOR MARS WRIGLEY Toll Group implements Dematic AGVs to maximise performance for the iconic confectionary manufacturer

SUSTAINABILITY AND FUTURE -PROOFED WAREHOUSES

JLL and Dexus on the benefits of prioritising warehouse sustainability

SUREFIRE SORTING RESULTS

OPEX’s Sure Sort system optimises small order fulfilment for local 3PL

BLURRING THE LINES BETWEEN RETAIL AND LOGISTICS

CBRE on hybrid retail & logistics shopping centres

Watch the demo

New AMR solutions by Körber

Conquer supply chain complexity Körber’s partnership with BALYO bridges the gap between traditional material handling equipment (MHE) and autonomous mobile robots (AMRs).

This includes autonomous forklift trucks, tow tractors (for tugging applications), stackers (for floors/low-level pallet movements) and reach-robots (for high racks).

Plus, get to know Körber’s extended depth tote-to-person AMR solution, powered by Geek+. RoboShuttle is designed to operate in narrow aisles, reach new heights and increase warehouse storage capacity of a manual warehouse by up to 250%, adding efficiency to existing facilities.

koerber-supplychain.com

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.primecreative.com.au

THE TEAM CEO: John Murphy Publisher: Christine Clancy Group Managing Editor: Sarah Baker Editor: Edward Cranswick Journalist: Billy Friend Business Development Manager: Beth Jarvis Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Kerry Pert, Aisling McComiskey Client Success Manager: Janine Clements

FOR ADVERTISING OPTIONS Contact: Beth Jarvis beth.jarvis@primecreative.com.au

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ACKNOWLEDGEMENT MHD Supply Chain Solutions magazine is recognised by the Australian Supply Chain Institute, the Chartered Institute of Logistics and Transport Australia, the Supply Chain and Logistics Association of Australia and the Singapore Logistics and Supply Chain Management Society.

ARTICLES All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

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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.

RETHINKING THE INDUSTRIAL PROPERTY LANDSCAPE

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he running theme of 2021 in industrial property has been that of scarcity. Warehouse space continues to be in hot demand, and that demand is far outstripping available supply.

Adding to the stock of developable industrial property is neither a quick nor simple process. Infrastructure needs, sustainability, liveability, citizens’ concerns, interest-group lobbying, and many more factors need to be considered. Overlay this with an often lengthy governmental approvals process, and there’s not a chance that supply can adjust with agility to rapid changes to demand.

With the surge in e-commerce continuing, logistics and retail providers are on the hunt for strategically located warehouses to better service consumer demands. Savvy investors in industrial property have been contemplating this since before the pandemic, according to CBRE’s Christine Miller – with pilot programs in the works to explore the exciting possibility of converting retail shopping centres into hybrid centres catering to in-person retail as well as last-mile distribution fulfilment.

Sustainability is also big on the agenda. If there isn’t much property to go around, companies will want a sustainable operation set up for the long hall. Indeed, JLL and Dexus this month talked with MHD about the upsides of warehouse sustainability – using Electrolux’s new warehouse at Dexus’s industrial estate at Ravenhall (in Melbourne’s west) as a case study.

In this edition of MHD we discover how logistics companies, retailers, and property investors can benefit not just by acquiring new properties in a very tight market – but transforming their current sites through creative solutions.

Rethinking industrial property is an imperative in a booming e-commerce age and a property market that just seems to get hotter and hotter.

Edward Cranswick Editor edward.cranswick@primecreative.com.au

MHD Supply Chain

MHD NOVEMBER 2021 | 3

NOVEMBER 2021

ISSUE #10 VOLUME 52

THIS ISSUE 10

COVER STORY

10 Toll Group implements Dematic AGVs at Mars Wrigley DC

SUPPLY CHAIN 21 Supply chain recruitment in the year ahead 33 Sustainability in the retail supply chain 44 Körber’s Elevate APAC conference

INDUSTRIAL PROPERTY 24 Blurring the line between retail

COVER STORY

and logistics 30 JLL’s sustainability key to future-proofing warehouses 42 The future of grocery logistics 46 What’s driving shortages in Western Sydney?

MATERIALS HANDLING MHD SUPPLY CHAIN SOLUTIONS

15 Toyota forklifts hit the sweet spot

NOVEMBER 2021

18 Combining automation and manual NOVEMBER 2021

COVER STORY

TRANSFORMING MARS WRIGLEY’S DC Toll Group implements Dematic AGVs to maximise performance for the iconic confectionary manufacturer.

27

27 Capitalising on warehouse space with Combilift’s electric forklift 39 A new player in the plastic pallet rentals market

SUSTAINABILITY AND FUTURE -PROOFED WAREHOUSES

JLL and Dexus on benefits of prioritising warehouse sustainability

WAREHOUSING

SUREFIRE SORTING RESULTS

OPEX’s Sure Sort system optimises small order fulfilment for local 3PL

BLURRING THE LINES BETWEEN RETAIL AND LOGISTICS

36 OPEX’s surefire sorting results

CBRE on hybrid retail & logistics shopping centres

48 The right WMS prescription for pharmaceutical distribution

or visit crown.com

DEPARTMENTS AND REGULARS 06 Industry News

ON THE COVER

50 Industry Associations

Toll Group implements Dematic AGVs to maximise performance, safety and operational resilience at a new national distribution centre for Mars Wrigley.

57 Products

54

58 People on the move

MHD NOVEMBER 2021 | 5

MHD NEWS

Sydney warehouse bought for more than $200 million

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60,000 sqm warehouse leased to Fantastic Furniture and DB Schenker has set a new benchmark in Australia after being acquired by Centuria Industrial REIT (CIP) for $200.2 million on a yield of 3.6 per cent.

The record low return eclipsed the 3.62 per cent yield for a 35,000 sqm Best & Less distribution centre, which AMP Capital sold to a Lendlease investment platform for $130.1 million in May. Prime logistics assets in Sydney and Melbourne are now regularly trading on sub 4 per cent yields amid the surge in online shopping during the pandemic, which has increased demand for warehouse space.

Centuria’s acquisition of the 60,223 sqm Fantastic Furniture and DB Schenker facility in Fairfield in Sydney’s west was struck at a 48 per cent premium to the facility’s December book value of $135 million.

The deal raised CIP’s portfolio of industrial properties to $3.5 billion.

Ross Lees, Centuria’s Head of Funds Management, said the group’s growth strategy was specifically focused on

Centuria’s purchase was on a low yield of 3.6 per cent. “metropolitan infill sites that are catered to the last mile logistics sector.

“The pandemic has been a catalyst for domestic online shopping, and we believe there is further growth to come across Australasia,” Ross says.

CIP will partially fund its latest acquisition spree – the fund acquired almost a $1 billion of assets in the 2021 financial year – through a $300 million institutional equity raising alongside a $25 million unit purchase plan.

Amazon to add Australian workers for festive season

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mazon Australia has announced plans to onboard 1000 seasonal workers at its fulfilment centres around the country for the holiday season.

The company is looking for workers with a range of experience and skill levels to help pick, pack and ship orders over the festive season. These are new seasonal job opportunities that provide extra income during the holiday season, offering Australians the opportunity to earn competitive pay in a safe and supportive work environment.

These seasonal opportunities can also present a path to employment 6 | MHD NOVEMBER 2021

with, and a longer-term career at, Amazon. Amanda Hadaway’s career at Amazon began with a seasonal position at Amazon’s Brisbane fulfilment centre packing customer orders. She was offered a permanent role and promoted and is now a Process Assistant.

“The potential for growth is so big and it’s a great environment which makes the time fly,” Amanda says. “It is enjoyable and also really rewarding to know customers are getting their orders on time.”

Craig Fuller, Director of Operations, Amazon Australia says the opportunities come at a time when they are needed most.

“There are opportunities for motivated, enthusiastic people from all backgrounds and we look forward to welcoming them to our sites around Australia as we head into the holiday period,” Craig says.

The announcement of seasonal jobs follows a year of job creation across Amazon’s Australian operations network, including the creation of more than 600 new permanent roles at Amazon sites in 2021.

Amazon has five fulfilment centres and 12 Amazon Logistics sites operating in Australia, with sites in Sydney, Newcastle, Melbourne, Perth, Brisbane and the Gold Coast.

250% Productivity Boost Automation at Asahi’s DC achieves results worth raising a beer to.

When consolidating its multiple Brisbane sites into the new Heathwood DC, Asahi made the decision to upgrade from previously very labour-intensive operations to a fully automated warehouse solution, eliminating manual handling of pallets.

With the introduction of a satellite ASRS solution, Dematic helped Asahi maximise storage capacity, reduce operating costs, and improve efficiency and productivity to better meet the needs of its customers.

Read more and watch the video at Dematic.com/asahi

Scan for the video!

Dematic.com/asahi 02 9486 5555 info.anz@dematic.com

MHD NEWS

Europe postpones FTA negotiations with Australia

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he European Union has postponed the 12th round of negotiations for a free trade agreement with Australia to November.

The move is believed to be retribution for the cancellation of a $90 billion submarine contract with French company Naval Group.

The backflip sparked a major diplomatic row with France, one of the European Union’s largest members, and now appears to have hit ties with the entire bloc.

France has publicly said it can no longer trust the Morrison Government, accusing officials of lying and questioning whether the trade agreement can go ahead.

Peter Jones, Founder of Prological, says the delay works against Australia’s best interest in the medium

and long term.

“At a time when COVID-19 has shown us the potential gains of being more self-sufficient from a manufacturing perspective, to find ourselves in the position we are in now with the EU challenges the nation’s best interest,” Peter says.

“We need these agreements in place to be able to foster Australian industry and manufacturing, both in terms of being able to competitively procure that which these other nations produce, as well as opening up doors for our own businesses to be able to export in a very competitive global environment.”

Trade Minister Dan Tehan has urged the EU to stick with the FTA. “A free trade agreement is in the interests of Australia and the European

Union and will strengthen our relationship that is built on a shared commitment to democracy, human rights, the rule of law and economic openness,” Dan says.

“We understand the French reaction to our submarine decision, but ultimately any nation must act in its national interest – which is what Australia has done.”

European Commission officials in Brussels listed a range of unresolved issues for the delay, including geographical indications, market access, intellectual property rights, public procurement and sustainable development.

In 2020, the trade in goods between the Australian and European economies was valued at $58 billion and at $42 billiom in services.

Coles boss warns of Christmas supply chain crunch

C

oles CEO Steven Cain says the supermarket giant is bracing for difficult months ahead because of severely disrupted supply chains and covid regulations forcing staff to isolate.

Steven says 3000 Coles staff are currently at home isolating, while many of its suppliers were also struggling with staff challenges due to the strict stay-at-home rules.

“At this point, with Delta, we’re at our most difficult stage. We’ve got many team members in isolation, we’ve got severely disrupted supply chains, and we’ve got people working very hard,” he says.

“Right now across the country we’ve got 3000 team members in isolation, which we have to manage, and then we’ve got a lot of our suppliers in similar situations so thinking about how we plan for Christmas is really important.”

The Coles boss says Victoria is at 8 | MHD NOVEMBER 2021

the start of supply challenges, as the country’s supermarkets push for government to relax 14-day quarantine rules.

“We’re working with the six health authorities, the federal and the states and territories, to try and get consistent rules and regulations, particularly around where there’s been close contact,” Steven says.

“If a team member of ours has caught COVID outside of work, and they come into work, the whole shift goes down. So we lose 50 people at a time for 14 days, because one person has turned up.”

Alongside the supply chain and staff challenges, Coles is also feeling the impact of restrictions in place for the construction industry.

“We’ve got hundreds of millions of dollars of projects, almost frozen at the moment in New South Wales and Victoria because of construction stoppages or delays,” he says.

3000 Coles staff were at home isolating in October.

“You just have to work around it and so I think we’ve all become a lot more agile and flexible in how we think about the business.”

NEWS MHD

Sydney logistics space drying up Only 5 per cent of industrial zoned land in Sydney is currently undeveloped and serviced.

A

ccording to CBRE’s latest research, 720,000 sqm of additional Sydney logistics space will be needed just to meet soaring e-commerce sales.

CBRE’s new Sydney Industrial & Logistics Land Supply report forecasts that a lack of industrial land supply in the inner city coupled with rising e-commerce demand will drive a market step change.

Report author Sass J-Baleh, CBRE’s Australia head of Industrial & Logistics Research, says prior to 2020, Australia’s retail inventory sales ratio had been trending down for 30 years, reflecting a ‘just in time’ model.

“Global supply chain disruptions have highlighted the need for retailers, particularly those using an online sales platform, to hold more inventory to minimise fulfillment delays, which is driving greater demand for Industrial & Logistics space,” Sass says.

“Rising inventory requirements due to the expansion of the e-commerce sector is a trend we have observed in the US since 2012, and we expect this to be replicated in Australia over the coming years.”

These rising requirements are driving capital and rental value growth in Sydney’s industrial sector, underpinned by the fact that just

five per cent of industrial zoned land in Sydney is currently undeveloped and serviced – equating to just 605 hectares of potential supply.

“This lack of land availability is particularly evident in Sydney’s inner precincts, which are becoming ever more sought after as ‘last mile’ hubs as e-commerce penetration rates rise,” Sass adds.

“As an example, just 0.2 per cent of the city’s undeveloped, serviced land is situated in Sydney’s north shore, compared to 43.4 per cent in the outer south west, and this is being clearly reflected in land and rental value differences. Over the next 18 months we forecast further limits to the availability of undeveloped and serviced land in Western Sydney, with no availability expected in Sydney’s inner precincts over the medium term.”

CBRE’s report highlights that Sydney land absorption has averaged 137 hectares per annum over the past decade, while leasing activity has averaged 805,000 sqm over the same period.

Retail and e-commerce transactions are playing a growing role, with the predicted 720,000 sqm of e-commerce space needed in the next four years translating to a 37 per cent jump in overall supply levels compared to historic averages.

CBRE Pacific Regional Director, Industrial & Logistics, Cameron Grier says given Sydney’s limited development pipeline and lack of speculative activity, this is expected to drive rental growth rates and result in further land value appreciation over the short to medium term.

“Even factoring in new serviced and zoned land corridors emerging in the medium term such as the Mamre Road Precinct and Badgerys Creek, a forecast rise in occupier demand is expected to offset any oversupply risks,” Cameron notes.

“The Industrial and Logistics land market has well and truly been reset and traditional institutional developers are now willing to pay prices that were previously only in the realm of data centres.”

MHD NOVEMBER 2021 | 9

MHD COVER STORY

DEMATIC & TOLL OPTIMISE NEW DC FOR MARS WRIGLEY Toll Group implemented Dematic AGVs to maximise performance, safety, and operational resilience at a new national distribution centre for Mars Wrigley.

T

oll Group is a leading Australian transportation and logistics (T&L) company, with operations in road, rail, sea, air transportation, and warehousing.

In April 2021, Toll announced it had entered into an agreement with Allegro Funds for the sale of the Global Express business. Completion of the sale is subject to regulatory approvals and other customary closing conditions, with completion targeted for the third quarter of this calendar year.

Toll’s core company mission is to help move the businesses that move the world.

With over 130 years’ experience, Toll has positioned itself as an industry leader in the T&L sector, equipped with the expertise to solve any logistics, transport, or supply chain challenge.

Locally in Australia, Toll has recently opened the doors to its new, highly automated and purpose-built food distribution centre (DC) in Truganina in Melbourne’s west, for its customer Mars Wrigley Australia.

The purpose-built, highly automated facility is designed to optimise warehouse operations in a resilient and robust way.

10 | MHD NOVEMBER 2021

Built by Toll for Mars Wrigley, the DC, which is bigger than two Melbourne Cricket Ground (MCG)s, is now the main Mars Wrigley national supply chain facility. Working alongside Dematic – an intralogistics innovator that designs, builds, and supports intelligent, automated solutions for retail, manufacturing, and distribution operations – Toll has built a facility that sets a new industry standard for automation in Australia.

TOLL AND MARS WRIGLEY’S SHIFT TO AUTOMATED WAREHOUSE OPERATIONS Following continuously high demand for Mars Wrigley’s products, Toll and Mars Wrigley strengthened its partnership by investing in a new state-of-the-art facility in Melbourne.

Built to manage all national storage, despatch and replenishment operations, the dedicated Mars Wrigley facility is highly automated to optimise warehouse operations in a resilient and robust way, so as to accommodate for current and

forecast future demand growth.

Peter Stokes, Global Logistics President at Toll, says that the new DC represents the future of supply chain and logistics in Australia, with its advanced integration of automated technology, including AGVs, positioning it as a flagship facility for the industry.

“Early on in the project, there was lots of effort that went into understanding Mars Wrigley’s business strategy and its products,” says Peter. “Equally, because of the capital investment, and the level of complexity around the project, there were many measures undertaken to understand the future view of what Mars Wrigley was aiming to achieve.

“When designing the facility, we took Mars Wrigley’s strategic needs strongly into account and our partnership with them has been particularly important in doing this. The facility is designed and purpose-built for Mars Wrigley to support its national distribution in Australia – serving as a multi-chamber, multi-temperature facility, now heavily automated with the use of AGVs.”

MHD COVER STORY

A large deployment of 17 Dematic AGVs is in operation at the Toll Mars Wrigley DC. With its industrious design, size, and deployed automation, the new facility removes the need for offsite storage, which was not possible under previous supply chain models.

“Mars Wrigley’s definitive direction for this project was to provide a platform for efficiency, safety, and performance for both our customers and the business, and to create an even greater partnership between Toll and Mars Wigley moving forward,” says Chris Georgiou, Supply Chain Director, Mars Wrigley.

“After the unprecedented levels of demand experienced during the pandemic, on top of the already surging demands on the grocery sector in general, it was clear that we needed to make the most out of this new facility, which is why we chose to optimise the facility with the use of automation – with the help of Toll and Dematic,” he adds. “This transition has helped us to not only boost efficiency in the current term, but to match our ambitions for future growth.”

SELECTING AN AUTOMATION PARTNER Due to Dematic’s long-term track record of successfully implementing automated technology solutions to warehouse environments, Toll was assured that this investment in AGVs from Dematic would meet the current and future needs of Mars Wrigley.

“The selection of technology partners is really important for us, which is why we selected Dematic for this project,” Peter says. “Dematic has long been a leader for automation in the industry, and so our decision to select them as technology and integration partner was based on their wide-spread expertise in implementing this kind of automation, and their hands-on approach to ensuring the system is deployed correctly and able to achieve its full potential.”

Dematic is the leading supplier of AGVs in Oceania, having supplied over 700 AGVs in upwards of 120 projects across the region. Dematic AGVs are designed, engineered, programmed, and manufactured in Sydney Australia – using world leading component systems, Peter says.

Four Dematic Counterbalance AGVs efficiently take care of pallet transportation tasks.

“

After the unprecedented levels of demand experienced during the pandemic, on top of the already surging demands on the grocery sector in general, it was clear that we needed to make the most out of this new facility, which is why we chose to optimise the facility with the use of automation – with the help of Toll and Dematic.

”

A SOLUTION TO STREAMLINE DC OPERATIONS The Dematic AGVs work as driverless forklifts that are integrated with the existing Warehouse Management System (WMS) to be loaded with data before setting off on daily tasks.

“AGVs are an intelligent solution that operate at a faster rate than any palletisation activity done with a manual forklift, with the end result being to eliminate all manual activity completely,” says Tony Raggio, General Manager of Sales, AGVs, Dematic.

“Overall, this has been the core focus

when optimising the new Toll Mars Wrigley facility with automation.”

The 17 AGVs at the Melbourne facility are purpose-built to operate across different areas of the DC. 13 Dematic High-Reach AGVs work to store and retrieve pallets of product in pallet racking; lifting pallet loads up to 10.5 metres high, with extendable tines to operate in double-deep racking.

The remaining four units – Dematic Counterbalance AGVs – efficiently take care of pallet transportation tasks in the facility.

The AGV solution manages, transports and stores pallets within the facility, with custom-designed functionalities designed to operate for up to 24 hours on a single charge. They work to receive, transport, and store full inbound pallets or raw materials into double deep racking, in line with Toll’s business rules.

Similarly, the AGVs work to transport picked pallets for replenishment to selected handover locations, or outbound replenishment and order staging areas.

“The AGVs working at the Melbourne facility are each broken down to operate in the areas that they are built for,” Tony says. “For example, outbound orders are picked by the High-Reach AGVs, which are then dropped at the end of the racking aisle to be transported to the staging area by the Counterbalance AGVs. This way, the entire fleet of AGVs work cohesively with each other, offering a completely automated picking, receiving, and transporting cycle within the DC.” The AGV Manage System (AGVM) MHD NOVEMBER 2021 | 11

MHD COVER STORY

A large deployment of 17 Dematic AGVs are in operation at the Toll Mars Wrigley DC.

communicates directly with Mars Wrigley’s existing WMS, Programmable Logic Controller (PLC), manual forklifts and all AGVs operating within the warehouse.

The AGVs navigate the facility with a laser-guidance system and use on-board hazard detection to avoid collisions.

This high-end navigation allows them to move around the facility optimally and safely. To do this, a rotating Laser scanner mounted on top of the AGV is used to measure angles and distances to reflectors mounted on the surrounding walls within the facility. The AGVs then calculate a position based on the information from the laser scanner, together with speed and steer encoders.

By using encoder and laser feedback, the AGVs have a repeatable accuracy of +/- 5mm.

Additionally, the AGVs are powered

by Lithium-Ion batteries and can drive themselves onto charging floor plates at times of inactivity to be fully charged in just two hours, as part of the Automated Battery Exchange function.

THE AGV SOLUTION ROLLOUT As part of the rollout, Dematic successfully tailored the unique specifications of the AGVs to the facility and Toll and Mars Wrigley’s business strategy.

By providing necessary planning and simulation data at the beginning of the project, such as item, stock, and goods-in and goods-out data, Dematic 12 | MHD NOVEMBER 2021

“

The new facility is a core pillar of our business strategy, which is based around improving the safety, quality, service, and cost metrics of our operations.

Since implementing the AGVs at the new DC, we have already seen a significant boost in productivity by switching from manual to automated operations.

”

and its project management team worked alongside Toll to ensure the AGV solution was deployed correctly to achieve its full potential.

Additionally, the AGVs implementation took into account the solution’s requirements and the facility’s existing infrastructure and power supply.

This included compatibility with IT networks and connection requirements, power supply for the WMS, server systems, workstations, and peripheral mobile devices.

“Dematic worked alongside our team for every step of the implementation

process, assessing all major factors with its rollout and support team to make sure everything was done correctly,” says Peter. “The hands-on approach taken

by Dematic also helped us to understand how the AGVs were going to fit into the existing infrastructure of the facility, and how they were going to operate within the space. This gave us the confidence that the solution would exceed the expectations we had for it.”

SAFETY AND TRAINING Dematic implemented a training program for the use of the AGV systems within the new Toll Mars Wrigley facility.

For the training phase, technical and support personnel from Dematic ran practical training sessions for duties such as storage, relocation and item picking, and the system maintenance of all system components.

For maximum safety in an environment where there are personnel and other material handling equipment, the AGVs have three obstruction sensors.

These sensors are designed to identify any unexpected object within the scanner’s horizontal sensing plane. The obstruction sensor has two sensor fields – one protection field and one warning field. When an obstacle is detected in the warning field, which is longer and wider than the protection field, the vehicle will slow down to below normal walking pace. When an object is detected in the protection field, the safety relay will trigger an emergency stop within the

MHD COVER STORY

BENEFITS OF THE AGV SOLUTION

AGV and it will remain stopped until the obstruction is cleared.

The AGVs also have four emergencystop buttons, with one in each corner of the AGVs. Once pushed, they trigger an emergency stop in the vehicle until it is released manually, and the reset button is pressed.

Additionally, fire protection measures are also included as part of the AGV solution’s safety protocols, with the system connected to all sprinkler systems, central fire alarms and smoke and heat vents within the facility.

For Toll and Mars Wrigley, being able to partner on an investment in a new state-of-the-art DC that features advanced automation technology like AGVs and is optimised to meet high growth – now and into the future – has been the biggest benefit overall.

The optimisation of warehouse operations using AGVs has enabled Toll Mars Wrigley to utilise its new facility to achieve significant improvements to the efficiency, accuracy, productivity, and safety of picking, put away, transportation, and retrieval and replenishment operations.

The deployment of AGVs has provided Toll Mars Wrigley with the ability to achieve an increased capacity of holding goods within the warehouse: capable of storing an additional 31,000 pallets of goods – equivalent to 730 million MARS bars. This means the AGVs will allow Mars Wrigley to accommodate for future growth, of up to 50,000 total pallets, compared to its current use of 19,000 pallets. This will greatly support Mars Wrigley’s growth ambitions in the Australian market.

“The new facility is a core pillar of our business strategy, which is based around improving the safety, quality, service, and cost metrics of our operations,” Chris says.

“Since implementing the AGVs at

the new DC, we have already seen a significant boost in productivity by switching from manual to automated operations. Likewise, the introduction of smart technology and automation will support our ambition to grow as a business.”

With a high level of autonomy, AGVs provide the backbone for a 24/7 operation to maximise service levels – otherwise very costly to maintain.

AGV systems can naturally grow with the addition of vehicles as volumes increase, and being exchangeable, they provide an unmatched level of system redundancy. With human error eliminated, AGVs redudce costly product and equipment damage.

The robust design of the AGVs means they can withstand the typically challenging environment of a warehouse, all while providing a 360° safety field of protection. This enables the AGVs to effectively and safely co-work with operators and any other warehouse machinery or vehicles.

“With worker safety being our top priority, automation with the AGVs creates a safer workplace and minimises mistakes which can lead to damaged products,” Peter says.

“This provides a better outcome for Mars Wrigley’s safety standards, while also ensuring its products arrive on supermarket shelves on time and in peak condition.” ■

SERVICE AND SUPPORT Dematic’s full ongoing service and support program help Toll to optimise system uptime, continuity of throughput, and production efficiency. This will ensure Toll and Mars Wrigley are getting the best ROI on the AGV investment.

Additional service and support provided by Dematic includes a maintenance, refresher operator, and a general system function employee training day course every six months, to increase employee confidence and knowledge of the AGVs. “Our service and support program provides resources that ensure the best level of productivity is achieved,” Tony says. “By working to reduce system downtime due to component failures, we can in turn reduce the overhead costs of system maintenance for Toll and ensure that the solution is able to operate in the best way possible.”

Dematic AGVs are designed, engineered, programmed, and manufactured in Sydney Australia.

MHD NOVEMBER 2021 | 13

MHD MATERIALS HANDLING

TOYOTA FORKLIFTS HIT THE SWEET SPOT Historic South Australian confectionary producer Robern Menz celebrates growth with a Violet Crumble-themed Toyota forklift.

Shaun Dwyer poses with Robern Menz’s new Violet Crumble-themed Toyota 8FBE18, 3-wheel battery electric counterbalance forklift.

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ong-standing Australian confectionary company Robern Menz has commemorated its recent success by decking out one of its Toyota Material Handling Australia (TMHA) forklifts with a Violet Crumble-themed paint job.

With roots that can be traced back all the way to 1850, Robern Menz has steadily built its business in the suburbs of Adelaide, and the purchase of the famous Violet Crumble brand in 2018 has seen its business taken to new levels.

For the last two decades, Robern Menz has relied on the stellar durability, class-leading safety, and hassle-free servicing of TMHA

equipment, and the Violet Crumble forklift represents the fruitful relationship the companies have enjoyed over the last 20 years.

Robern Menz currently uses a fleet of 14 different TMHA machines to run its business, and Warehouse Manager Shaun Dwyer says that the reliability of the equipment, part of the Toyota Advantage, is crucial given how consistently they are used.

“Our units are utilised 24 hours a day, so reliability is massive for us,” Shaun says.

“The counterbalance forklifts are used externally and internally, again 24 hours a day, and the walkie stackers are the same – we

continually use them.

“The ease of use, the servicing, and the people from Toyota have been a huge plus for our side of things.”

Shaun says his local TMHA sales manager Derek Baxter has been integral for the smooth running of the business, bringing Robern Menz unique solutions, another Toyota Advantage, to help counter any problems they may have.

“Derek and I have a great relationship, he’s easy-going, easy to talk to,” Shaun says.

“I love putting out tricky situations for him just to see what he can come back with, and he always comes back MHD NOVEMBER 2021 | 15

MHD MATERIALS HANDLING

with an answer.

“Toyota seem to have a plethora of people around the country so, if he can’t find the answer, he’ll look to other TMHA reps and come back with the answers we are looking for.”

One such solution that has worked well for Robern Menz has been the adoption of two Toyota VRE150 Very Narrow Aisle (VNA) turret trucks, which have proven to be a valuable addition.

The first of their kind in South Australia, the VNA trucks has allowed Robern Menz to free up an additional 500 pallet spaces in its warehouse, helping facilitate a scale-up in its operations.

If there is any need for service, it is crucial that Robern Menz’s TMHA equipment is serviced quickly and efficiently, given the round-the-clock use the forklifts and reach trucks get.

Shaun says TMHA’s dedication to quick and hassle-free servicing is one of the best reasons to use the machines.

“To get a technician on-site is a priority for Toyota, they come out and fix things quickly and they make sure the job is done before they leave, which is absolutely brilliant,” he says.

“There’s no need for follow-up, there’s nothing else, and if they do want to come back and check

Robern Menz has been shipping one 40-foot container of product around the world every fortnight.

16 | MHD NOVEMBER 2021

something, they plan it, they book it in for when they need to come back, so there’s nothing required from the Robern Menz side.”

The fleet of TMHA equipment used includes walkie stackers, counterbalance forklifts, a scissor lift, a powered pallet truck, a floor scrubber and the aforementioned VNA trucks.

Derek says that a significant part of Robern Menz’s satisfaction with TMHA comes from the equipment’s legendary reliability and safety, both core values of the Toyota Advantage, as well as an exhaustive range of products to suit any need.

“You want machines that are safe, that are reliable,” he says. “You want to be aligned with a company that if there is an issue, they tend to your needs as quickly as possible, which we’ve always done.

“If there’s anything they require, through our extensive product solution we can pretty well fill any gap they require in their operation.

“They’ve seen my face for the last 20 years and there are plenty of businesses who have come and knocked on their door and tried to win that business, but they’re very happy with Toyota.”

Since taking over the Violet Crumble brand in 2018, Robern Menz has seen an expansion of its business, shipping the beloved honeycomb chocolate

“

Our units are utilised 24 hours a day, so reliability is massive for us. The counterbalance forklifts are used externally and internally, again 24 hours a day, and the walkie stackers are the same – we continually use them. The ease of use, the servicing, and the people from Toyota have been a huge plus for our side of things.

”

internationally to markets including the United States and Philippines. The rights to the Polly Waffle chocolate bar were also purchased in 2019, while the performance of the company since the start of the pandemic has seen its 110strong staff working hard to keep up with demand.

Robern Menz has been shipping one 40-foot container of product around the world every fortnight, helped by the 24-hour operation of its TMHA equipment.

Shaun says that the fantastic performance, reliability, competitive pricing and customer-focused servicing meant that TMHA would be the clear choice if more forklifts or reach trucks needed to be purchased.

“The sales service to begin with, the aftersales service, the servicing and everything else – I haven’t seen it like this before,” he says.

“I’ve used a couple of other brands, and Toyota are just head and shoulders above everybody else.

“No matter what’s happened, Toyota has always had our back, and that’s a huge positive from our side of things,” Shaun says. ■ For more information freecall Toyota Material Handling Australia on 1800 425 438 or visit online at www. toyotamaterialhandling.com.au

MHD MATERIALS HANDLING

DREAM TEAM: HOW AUTOMATION AND MANUAL OPERATIONS CAN WORK TOGETHER Crown Equipment explains the unique cost-effectiveness and flexibility of automated technologies that can be reconfigured for manual handling.

W

hen it comes to supply chain automation, there are very few questions about whether this technology is a viable option. Numerous successful projects and applications across the industry have shown there can be benefits to incorporating certain types of automation into warehouses and distribution centres.

As supply chain managers begin to research automation solutions, they are often presented with case studies showing new, fully automated facilities that can sometimes make it feel like the technology is still somewhat out of reach.

For many companies, building a new, completely automated facility may not be possible in the short term.

While technology is evolving quickly to make automation more practical for use in warehouse and distribution environments, the significant upfront

Crown provides a materials handling solution specific to a business’s requirement, need, or circumstance.

18 | MHD NOVEMBER 2021

investment and infrastructure requirements of an all-or-nothing approach typically involves long-term strategic planning and preparation.

So, if you’re one of the supply chain managers trying to determine which automation strategy and technologies are right for your operation, what should you do?

You can start by identifying the tasks and equipment that are ideal candidates for automation.

Next, prioritise those opportunities based on metrics that make sense for your business and begin with a project of a size and scope that fits your comfort level and business case.

STRATEGIC AND SCALABLE SOLUTIONS Any effort to introduce automation to your facility should ideally be guided by a realistic plan with achievable expectations that can also be scalable based on success and growth. Develop a clear path for tangible return on investment (ROI) and determine a process and mechanism for building upon your success. This will help you strategically grow and evolve your automation efforts.

Given its prominent role in enabling product movement across the supply chain, the forklift provides an ideal starting point for a scalable automation initiative.

One approach to forklift automation that is gaining a lot of attention is ‘dual mode’ technology that enables both automated and manual operation.

Dual mode automation can be an ideal approach for companies that may

not have a warehouse management system but would still like to realise the benefits provided by automation technology. Operations that do utilise a warehouse management system may contain a small percentage of exceptions that seem ill-suited for automation.

Dual mode functionality can also help manage these exceptions without requiring a separate solution.

IMPLEMENTING DUAL MODE AUTOMATION So, what is meant by ‘dual mode automation’?

Forklifts with dual mode automation technology can switch between manual and automated operations, depending on the needs of the facility. Dual mode automation enables warehouses to take an incremental approach to deploying automation solutions with minimal or no supporting systems or infrastructure.

The important thing to understand about dual mode technology is that it is based on automated equipment that can be operated manually – it is not a piece of manual equipment that has been engineered to operate autonomously.

The equipment’s automation features are fully integrated into the vehicle as they typically are in a fully autonomous vehicle. The difference is that the dual mode technology allows the equipment to be used as any other manual equipment would be used when a particular application calls for it.

For instance, consider a tow tractor used to pull carts from point A to point B in a facility, with material being loaded and unloaded at each point.

With a dual mode tow tractor, travel

MHD MATERIALS HANDLING between the two fixed points could be automated, freeing up an operator to focus on other tasks. Should the tow tractor encounter an obstacle in the set path – such as a pallet in an aisle – a typical trained forklift operator could quickly switch the vehicle into manual mode to navigate around the obstacle.

It could then be returned to automated mode to continue to its destination, thus maintaining the flow of the system.

A dual mode system doesn’t require the specialised staff that may be required with a fully automated solution. In addition, one employee can often manage multiple dual mode vehicles, stepping in only when manual operation is needed.

This is just one example of a process that could be streamlined with dual mode automation. The possibilities will only increase as dual mode technology continues to evolve. And, by enabling a scalable approach, dual mode automation technology offers the flexibility companies need to evolve their automated processes at their own pace.

When implemented strategically and deliberately, establishing and expanding

automated solutions within the facility can provide incremental benefits that prove the viability of the technology in your operation. As you explore options for dual mode technology, an experienced material handling partner can help determine how best to integrate the technology into your processes in a way that enables the benefits of the technology to be fully realised and ROI to be generated with each deployment.

CROWN’S AUTOMATED DUALMODE T TOW TRACTOR In many material handling applications, horizontal travel accounts for the majority of product movement. Today’s modern material handling operations have been optimised in many ways with equipment and processes designed to move product over these long distances without human intervention in warehousing, manufacturing and other process-oriented applications.

These automation improvements can help reduce the expense associated with the internal movement of materials.

However, non-conveyable items, those that cannot be transported on conveyor systems due to their unique size, shape or bulk, can still require some form of manually controlled transport.

Because non-conveyables require human intervention to facilitate their

travel, many companies are considering how automation might be applied to this process. Though automation typically works best in applications with repetitive functions in predictable environments, flexibility is the name of the game in non-conveyable transport.

Crown’s automated DualMode T tow tractor can provide a flexible alternative to manual transport of non-conveyable items in dynamic environments, without costly investment in significant warehouse infrastructure. A series of carts towed by the automated tow tractor can be loaded by a worker, who then enters the stop locations into the vehicle’s interface. The vehicle then traverses the facility – depending on the environment – using a natural feature navigation system, which can be deployed with little or no supporting infrastructure.

If the DualMode T tow tractor encounters an obstruction, it slows to a stop and alerts other workers that is path is blocked. When the path is cleared, the vehicle automatically resumes travel to its destination. When it reaches a programmed stop location that already has a vehicle parked for unloading, it will either stage behind that vehicle or use an established passing lane to continue to its final destination. When the mission is complete, the vehicle automatically returns to the next available loading location.

In select cases where the operations do not provide a clear path for the DualMode T tow tractor, the vehicle stops and notifies workers that action or attention is required. Since the vehicles feature dual modes of operation – automated and manual – any trained operator can manually move the vehicle and its cargo to its specified course and resume automated operation.

RESULTS

Crown’s automated DualMode T tow tractor.

Automated vehicles such as the DualMode T tow tractor, equipped with natural feature navigation systems, can deliver non-conveyable items quickly, efficiently and safely to their destination – without the need for manual operation. Such systems can be easily reconfigured as transport needs evolve, without the complex infrastructure issues association with the reconfiguration of traditional conveyor systems. ■ MHD NOVEMBER 2021 | 19

MHD SUPPLY CHAIN Companies will need to adjust expectations moving into 2022 given supply chain talent is currently so scarce.

SUPPLY CHAIN RECRUITMENT IN THE YEAR AHEAD

Tony Richter, Partner at Bastian Consulting, explains the trends, demands, expectations and lessons at work in the supply chain recruitment arena – and what supply chain companies and recruiters can expect in 2022.

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s a leading recruiter in the space of supply chain and logistics, Tony Richter, Partner at Bastian Consulting, says that he will have his eye out for two particular sets of skills as we move into 2022.

“One is certainly an understanding of the e-commerce world and omnichannel fulfilment,” he says. “The rise in e-commerce during the past 18 months or so is a trend too obvious to need pointing out anymore, but it does make a significant difference in terms of recruitment. Supply chain professionals wedded to the old ‘bricks and mortar’ model – and lacking the ability to adapt to digital supply chain – are going to find it harder and harder to keep up in 2022.”

Tony says that more and more supply

chain roles are coming to function as the conduit between traditional supply chain operations and technology.

With increasing integration between operations and tech, he says that supply chain professionals are the “buffer” between the two, or the “control tower” that must coordinate and align different personnel skills and different segments of an organisation.

The second major skill he thinks recruiters will be looking for is an ability to interpret data. “It’s not about finding the data anymore,” he says. “Machines collect and analyse a large chunk of data these days – a trend which won’t slow down, let alone cease – so the dataskill that will be highly prized moving forward is the ability to interpret data: ‘What does this data actually mean

in this context? Is this data relevant to us? If so, what actionable insights necessarily follow?’”

LABOUR SUPPLY AND DEMAND AT THE EXTREMES Tony says that globally, but especially within Australia and APAC, current investment in supply chain is unprecedented. As a result, supply chain consultants and software providers are under the pump keeping up with customer demand for supply chain transformation.

“If you look at the market – it’s not everyone doing it at once – it’s staggered with companies starting different projects at different times,” he says. “It’s not a matter of flicking a switch and then everyone having to MHD NOVEMBER 2021 | 21

MHD SUPPLY CHAIN

get up to the same level all at once.

But at the same time, COVID has left everyone exposed and in need of some level of optimisation if they are to retain market share.”

With everyone needing at least some level of upgrade, Tony says that there simply is not enough talent to go around. “There’s just not enough of these people who have large scale digital or tech or sophisticated supply chain transformation experience, and consultancies are struggling to keep up because they don’t have enough people to meet the unprecedented demand volume.”

He adds that it’s even at the point where recruiters are having to look outside to other industries to bring in people with translatable skills.

Quick studies who are adaptable, in other words.

“But it’s an incredible place to be right now if you’re a high value, high calibre supply chain professional – junior or senior,” he says. “You’re essentially in a position to be writing your own price tag. The only countervailing force to that is employers still don’t seem to see it that way. They’re really trying to stick to salary bandings, salary levels, and remuneration packages that were appropriate 18 months ago, but just are not fitted to matching the talent shortage challenges they’re facing. So, I think there’ll need to be a re-think on the part of some employers in adjusting their expectations of what they’ll have to pay to secure the talent they need.”

WILL TALENT RETURN TO AUSTRALIA? Which regions and cities attract and retain supply chain talent is dependent on a very complex web of factors, Tony says, so there are no easy predictions to make regarding Australia attracting, retaining, and ‘onshoring’ more of its supply chain personnel.

That said, particularly for middle to senior level supply chain professionals, Australia offers an obvious drawcard: lifestyle.

“I had a call recently with a high-level executive in one of the major Australian mining companies,” he says. “He’s worked for a number of mining and energy companies in Australia, but also in South America and elsewhere. He’s 22 | MHD NOVEMBER 2021

“

We are really taking the lead in educating our clients’ expectations on things like market conditions in terms of salary and how effective their current recruitment strategies are. We have probably never spent as much time as we are now on expectations-management and education.

”

originally from Canada and is living in Toronto at the moment. He got in touch with me via a referral and said, ‘Look, we just want to come back to Australia from a lifestyle perspective. We’ve got two twin boys – and the Australian lifestyle is just the best thing for us and our family.’”

The industry rhetoric around worklife balance and remote-work – spurred by pandemic settings – has changed, Tony says.

“At least for the time being I think you will see Australians looking to either stay home and take a smaller role or try to stay home and take on regional roles that can be performed remotely – because we’ve adjusted to dealing with time-zone differences.”

Whether or not such ideas are contingent upon COVID’s unique impact, or will have more lasting significance, is hard to say. If things return to something akin to pre-COVID conditions, then regional pull factors at play for businesses in APAC will re-assert themselves.

“Once things return to normal, a big factor for Australians will be Singapore and Singapore’s openness to foreigners and its allocation of visas,” Tony says.

“Singapore has been tightening visas for a number of years around employment passes and how many they give out to foreigners. If there’s a change in that balance and they open up more again, then more talent will likely go to Singapore.

“Singapore is the hub for supply chain in the APAC region. The supply chain

starts and finishes in Singapore right now, because of its tax structure and other advantages it offers to businesses location-wise. So, what happens in Singapore will have trickle down consequences for Australia in terms of attracting and locating talent.”

THE LESSON OF 2021 – MANAGE EXPECTATIONS Traditionally, Tony says, Bastian has been approached mostly for its skills in recruiting at the senior level, or when a company’s internal HR or recruitment team haven’t had any luck finding the right person.

But because of the influx of demand, Tony says Bastian is being asked to recruit for – and consult on – a broader range of roles; not simply the elite positions.

Accompanying this additional demand is the added task of managing client expectations.

“Our ability to manage expectations – and I think this is probably the biggest lesson we have taken from this year – around timelines and deliverables has been imperative,” he says. “A client might approach us, and they’re six weeks behind on a project, and they tell us they need a position filled immediately. Our job is to tell them, ‘We can certainly help you, but this problem can’t be solved in a day, and especially not in this competitive market.’

“We are really taking the lead in educating our clients’ expectations on things like market conditions in terms of salary and how effective their current recruitment strategies are. We have probably never spent as much time as we are now on expectations-management and education. It used to be the case that we might be asked by clients to justify our methods, whereas now we are preempting their questions and giving them the advice they need to hear.

“Because at the end of the day, we’d rather be upfront with clients that it might take longer finding the right candidate for them than they expected.

But by spending the extra time getting it right, it also massively improves the chances that the candidate will be a long-term solution for them – not a shot-term fix – and they won’t be turning around tomorrow trying to fill the same position again that they filled only three months prior.” ■

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MHD INDUSTRIAL PROPERTY

BLURRING THE LINE BETWEEN RETAIL AND LOGISTICS Christine Miller, Head of Supply Chain Advisory – Pacific at CBRE explores the possibilities of converting shopping centres into hybrid centres for retail and last mile fulfilment.

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hristine Miller, Head of Supply Chain Advisory – Pacific at CBRE says a conceptual shift is taking place among some pioneering investors and landlords, whereby “the distinction between a retail asset and an industrial asset is starting to blur.”

She elaborates that the notion of “mixed use assets” as a category may be expanding to encompass novel combinations of retail and logistics uses for assets, in particular the possibility of converting or combining retail shopping centres to incorporate distribution – particularly for the last mile.

“That blurring of distinction is really happening because, as soon as you fulfil an online order from a retail store, that retail store just became part of your logistics network,” Christine says.

A re-thinking of the nexus between retail shops and supply chain distribution

The COVID-19 pandemic has further linked retail shops and supply chain distribution.

24 | MHD NOVEMBER 2021

has been pushed front-of-mind because of the COVID-19 pandemic.

“As an asset class, retail shopping centres struggled most under pandemic conditions,” she says. “If we look at a graph that shows their capital value index, shopping centres would definitely show a decline since the end of 2019.

Naturally, owing to the pandemic we saw offices close, and we saw retail stores close. Conversely, industrial and logistics assets were really the heartbeat of so many retailers and other businesses because they were allowed to continue operations. Those that could react quickly to pull inventory back from retail stores and into warehouses to fulfil orders online were the players with an advantage.”

In addition to the closure of retail stores, those tenants that didn’t close shop often asked their landlords

for rental relief. “As an asset class, retail has had a tough go since 2020,” Christine says.

TIME FOR A HYBRID MODEL? Christine says that the pandemic jumped e-commerce growth five years ahead in just 12 months. The latest figures show 14 percent of total retail sales are online, and this figure will rise to 20 per cent by 2025, she says.

“There is no doubt that a permanent shift in consumer behaviour has occurred, bringing consumers online that previously would have preferred to maintain a physical connection to their retail experience,” Christine says.

“No doubt – when we’re out of these lockdowns some of that will return – because people enjoy ‘retail therapy’ and the physical and social experience of shopping.”

That sense of human connection means that in-person retail isn’t going away, but it does beg the question of how best to utilise retail stores in the future.

“I think there is a real opportunity for landlords and tenants to consider a hybrid model that combines the human touch of personal service with the capacity to fulfil e-commerce orders from retail,” she says. “We know that 28 per cent of the cost of transporting a good is in the last mile. So, if retailers can use their store networks or urban locations to fulfil online orders, they’re actually able to despatch products more efficiently than from a warehouse on the outskirts of town – given shoppers’ usual proximity to where they do their retail shopping.”

But while there are clear savings in terms of transport, Christine cautions

MHD INDUSTRIAL PROPERTY that conversion of retail stores to hybrid centres does incur other associated costs.

“The flip side of the transport savings coin is that there’s roughly 30 per cent more costs in terms of order fulfilment,” she says. “Because they’re naturally not in an industrial location, they’re paying a retail level rent, and in some cases the labour is also more expensive in that category. Added to that is the challenge of ensuring enough inventory in those retail stores – again adding more costs into the operation.”

Nevertheless, Christine is confident that the hybrid model is not a mere speculative possibility, but a definite oncoming reality.

“This opportunity to act as a hybrid and combine online, omni-channel, and physical, is actually the way of the future in terms of effectively managing consumers’ market expectations for how fast things should be delivered,” she says. “Putting distribution centres closer to the points of consumption makes sense, and we don’t have to look very far – particularly in Victoria – to see the real challenges of moving parcels through the current network. So, I think the hybrid model is a really good direction for landlords and retailers to go.”

Christine adds that for retailers, the potential of hybrid stores provides an opportunity to re-think their store location networks. With one space serving a dual function, it opens possibilities to enter new locations that might not otherwise make sense.

“The opportunity to put logistics into shopping centres gives retailers options to serve customers in locations where they wouldn’t traditionally have a retail store. It allows for a fresh take by retailers to consider what their future network should look like.”

IT’S ALREADY HAPPENING While the notion of the hybrid model for retail and distribution is not new, Christine says it’s definitively moved from the domain of speculation to action.

“It’s unfolding right now in the market today,” she says. “We have e-tailers as well as parcel providers that are taking sites that specifically focus on last mile activities. There are pilot programs already taking place in shopping centres right now.”

CBRE has taken an active role – even prior to the pandemic – in consulting with asset owners on the hybrid course.

“We started working with one particular asset owner at the end of 2019, who saw a future where they felt they were potentially at risk of having underutilised space at shopping centres, and that the right way to futureproof their assets was to introduce logistics

“

The opportunity to put logistics into shopping centres gives retailers options to serve customers in locations where they wouldn’t traditionally have a retail store. It allows for a fresh take by retailers to consider what their future network should look like.

”

Christine Miller, Head of Supply Chain Advisory – Pacific at CBRE.

into those spaces,” Christine says. “While the conversation has picked up pace because of COVID-19, it was quite visionary for this owner to be thinking of this already in 2019. So, right now we have pilots underway to capture some initial learnings to make sure that when a network does roll out, it’s been fully tested.”

Christine says that CBRE’s Advisory Services group has developed a 13-point matrix to evaluate assets for their hybrid conversion potential.

“We’ve been brought on board by property owners and investors who specifically want to have their portfolios assessed from this perspective,” she says. “On behalf of a couple of investors we’ve run their assets through the matrix and been able to identify high potential locations. Now we are having discussions in cooperation with parcel providers and retailers to put together pilots in facilities that have been deemed as having high potential. Because not every shopping centre is the same when it comes to conversion.

“For the high potential sites we’ve identified, we’re now going through the process with asset owners to conduct pilots in those sites and capture some initial learnings and information before we run full-speed into a solution.”

Christine says that this re-thinking of the retail-logistics locational network is an exciting development in the industry. “I think everyone in this space right now needs to be thinking about what the future looks like for them. It’s certainly not easy with lockdown conditions – and the industry is anxious to get a sense of what the post lockdown ‘normal’ looks like – but we will get there,” she says. ■ MHD NOVEMBER 2021 | 25

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MHD MATERIALS HANDLING

CAPITALISING ON WAREHOUSE SPACE WITH SUSTAINABLE EQUIPMENT Upon the launch of Combilift’s newest electric forklift, MHD talks to CEO and Co-Founder Martin McVicar about how investing in sustainability is helping businesses make the most out of warehouse operations.

The Combi-XLE is Combilift’s latest addition to its fleet of electric forklifts.

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rish materials handling specialist Combilift has officially launched its latest product, the Combi-XLE, as a further addition to its range of electric models. Combilift CEO and Co-Founder Martin McVicar says the product is in line with a growing demand for electric powered equipment.

“The vehicle allows clients to optimise their warehouse space,” Martin says.

“Maximising the warehouse footprint is key to reducing carbon emissions for any business. The multidirectional forklift

with up to five-tonne lift capacity, combines emission-free operation with powerful performance for a wide range of industries and applications.”

The original engine powered XL C-Series model was developed to address the requirements of tough working environments such as those in the timber, concrete and steel sectors.

The new Combi-XLE incorporates the same key design features as its earlier counterpart such as high ground clearance, large cushioned front and

rear tires and a spacious cab, allowing smooth operation on semi rough terrain whilst offering a high level of driver comfort.

With sustainability ever higher on the agenda, Combilift further helps its customers achieve their environmental goals with its versatile “3 forklifts in 1” models, which work inside and out, reducing fleet size and thereby their carbon footprint.

Martin says a hallmark of Combilift products is the ability to increase storage MHD NOVEMBER 2021 | 27

MHD MATERIALS HANDLING

capacity without expanding the size of a facility, resulting in lower energy usage and associated costs such as heating, lighting and maintenance, which is of significant benefit to the environment and the workforce.

“The demand for warehouse space is at a premium across the developed world and acquiring skilled labour can pose a major challenge in Australia,” Martin adds. “Our drive comes from allowing customers to do more with their existing facility.”

Electric power also alleviates noise pollution and carbon emissions, which can impact on the health and well-being of people as well as wildlife. Drivers, employees and visitors on site appreciate the quiet operation, as do neighboring residents and businesses, particularly in urban areas.

Dave Clement, Production Director at Roger Bullivant Limited says the company has enjoyed a smooth transition to an electric fleet of Combilift vehicles.

Part of the Soletanche Freyssinet Group, Roger Bullivant Limited manufactures precast concrete elements for installation in engineered foundation systems.

“At our South Derbyshire precast factory, we use 5 multidirectional Combi-XLE trucks to transport product from the factory to storage and then to load-out for distribution nationwide,” Dave says.

“As we had already been using Combi units for years, the product decision was straightforward, and from a driver perspective, the operation remains essentially unchanged.

The reasons to move to electric were twofold: to eliminate exhaust particulates in the factory and as part of our Group environmental plan to minimize our carbon footprint. So, an improvement to the environment in more ways than one.”

The Combi-XLE incorporates up-tothe-minute technology such as the patented all-wheel traction that reduces tire wear, load swing and enhances braking. A newly developed, patented Eco-Steer System provides a smaller turning radius and improved user experience. Since Electric powered trucks do not have traditional combustion engines, or hydraulic transmissions, there is no longer any need to check and top up engine fluids or lubricants, 28 | MHD NOVEMBER 2021

“

We made our first electric C-Series over 18 years ago, and now over 60 per cent of the trucks we manufacture are electric, with availability in almost all models across our range. As more and more of our customers are opting for electric power it is obvious that they are as committed to sustainability and a circular economy as we are.

”

resulting in longer intervals between services, ultimately saving costs. The use of toughened, eco-friendly waterbased paint also dramatically reduces the amount of Volatile Organic Compounds (VOCs) during build.

“The technology we have incorporated into the Combi-XLE means that its performance is equally on a par with diesel or LPG powered forklifts when it

Electric powered trucks don’t require topping up engine fluids or lubricants.

comes to handling very bulky and heavy loads, whilst of course offering a greener operation,” Martin McVicar says. “We made our first electric C-Series over 18 years ago, and now over 60 per cent of the trucks we manufacture are electric, with availability in almost all models across our range. As more and more of our customers are opting for electric power it is obvious that they are as committed to sustainability and a circular economy as we are.”

At Combilift’s own manufacturing facility, features such as daylighting technology - LED lights with individual PIR sensors, solar panel energy and rainwater harvesting are all aimed at conserving natural resources and decreasing energy consumption. 92 per cent of all components used in the truck assembly are 100% recyclable and the company is also on track to save over 473 tonnes of CO2 by using carbon neutral wood chip instead of gas for heating within the factory.

“We made a conscious decision early this year to invest in carrying more raw materials to deal with supply chain challenges,” Martin adds. “At the back of our facility, we’ve added 4000 square metres of paved area for storage of raw materials particularly steel and heavy raw materials.” ■

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MHD INDUSTRIAL PROPERTY

SUSTAINABILITY KEY TO FUTURE-PROOFING WAREHOUSES

Reducing the environmental impact of warehouses is becoming more integral for many owners and occupiers. JLL and Dexus show MHD the benefits of prioritising warehouse sustainability through Electrolux’s new warehouse at Dexus’s industrial estate at Ravenhall, in Melbourne’s West.

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fter years of industrial real estate brokerage, JLL created a dedicated supply chain team in Australia in 2018. Bruce Myers was brought to the company in 2018 to spearhead the consulting service as Director of Supply Chain & Industrial, bringing years of experience in network strategy, inventory optimisation, warehouse design and facility master planning Leveraging off its award-winning research division, JLL’s supply chain focus allows the company to zero in on warehouse processes which drive the key industrial decisions.

Allan Frydman, JLL Supply Chain & Logistics Principal Consultant, says individual and group expertise across transport, warehouse design, network design and inventory analysis allows JLL to tackle the full gamut of supply chain challenges.

“By sitting client-side to understand their operations we can make sure the warehouses are in the right position with the right number across the country,” he says.

JLL creates a more global network by using its expertise and resources in the APAC region for customers in the Australian market as required.

“Having supply chain experts across Australia, Singapore, India, China, Japan, Vietnam and Thailand gives us a really big global network – and the majority of our clients are interacting with Asia – so we’re able to bounce off that interaction,” Allan adds.

SUSTAINABILITY FOCUS JLL’s sustainability sub-team works with both owners and occupiers to reduce the environmental impact of facilities 30 | MHD NOVEMBER 2021

JLL and Electrolux have worked closely with Dexus in the construction of the new facility.

and operations. Allan says the team, led by Loretta Brazukas, works early in the master planning process to identify sustainability pain points.

JLL has seen a huge push towards sustainability on behalf of clients – as the company aims to be carbon neutral itself by 2030 – Allan says sustainable features can provide significant cost savings for businesses’ real estate requirements.

“If you want to be renting this facility in five or 20 years you can’t just put four walls and a roof on without considering the environment,” he says. “Solar cells

on your roof can reduce electricity bills by 10-15 per cent. A more efficient fleet with correctly located vehicles is the easiest saving. Reducing emissions per kilometre gives a sustainability benefit which directly translates to a proportionate cost benefit as well.”

This transport benefit is exemplified in Electrolux’s new warehouse, being developed by Dexus at their industrial estate at Ravenhall in Melbourne’s West.

Moving from the south of Melbourne will reduce Electrolux’s travel distance to the port and to customers – saving money on freight. The Ravenhall estate is

MHD INDUSTRIAL PROPERTY

“

The right orientation, location for office, and even roller doors: there’s a myriad of obvious yet smart ideas you should be embedding in your design that’s going to set you up really well for success in terms of picking up those next features.

”

well connected to the Western freeway, which will provide a further cost and sustainability advantage to facilities closer to Melbourne’s CBD.

JLL WORKING WITH ELECTROLUX Electrolux’s looming lease expiries prompted discussions with JLL about the future of its warehouse operations in Victoria. From dedicated research to understanding Electrolux’s business, JLL created a comprehensive supply chain review, in-turn defining KPIs and benchmarking these indicators against industry.

Allan says this initial process actually instigated a change in belief for the home appliance distributor in identifying which warehouses were performing the best.

“Electrolux has five warehouses across Australia. We were able to identify which of those warehouses had the best operating processes and structures in place,” Allan says.

“Electrolux then took that on board as a project and has been working on standardising its processes across its five sites, which has delivered significant labour savings. We were able to do similar activities with their secondary freight network.”

Having been in the south of Melbourne for 20 years, the decision to uproot Electrolux’s loyal staff to the other side of town wasn’t taken lightly.

David Mair, Electrolux Acting Operations Director Australia New Zealand, says sustainability and a need

to be closer to customers were at the core of this strategy.

“We looked at our environmental footprint within the Victorian market and saw moving west as an opportunity to invest in a more economically, sustainably rated building,” he says.

“It also brings us closer to ports and the airport and some of our key customers with distribution centres in Truganina.”

Once a thorough supply chain review indicated that moving to a new facility was Electrolux’s best option, JLL’s project delivery services team developed a detailed specification brief for the building. The brief considered operational constraints, operational requirements, supply chain requirements, and building requirements – and was taken to market to run a competitive tender process.

DECISION TIME David says Dexus’s ability to understand the building brief separated it from the other shortlisted developers.

“We provided one of the most comprehensive briefs I’ve seen, which is a credit to JLL,” he says. “Dexus was one of the few developers that really understood our sustainability and production goals and presented back to us the type of land option that would help our business over the next 20 years.”

Set to move into the facility in late February, Electrolux has set a target of a 20 per cent uptake in productivity. David adds the company’s reduced carbon footprint in primary and secondary transport will lead to substantial cost savings.

“We are hoping this innovative 6 Star Green Star Design and As Built rated facility will help us reach our goal of being carbon neutral by 2025,” he says.

“We’re so excited about the Ravenhall facility becoming Electrolux’s first 6 Star rated facility globally. Building design and implementation normally takes a couple of years – but to finish in basically twelve months is an amazing effort.”

DEXUS’S 6 STAR GREEN STAR DESIGN AND AS BUILT FACILITY The Green Building Council of Australia’s Green Star rating system is Australia’s largest holistic sustainability rating

system for buildings and fit-outs.

Chris Mackenzie, Dexus Head of Industrial Development, says Electrolux jumped at the opportunity to move into a 6 Star Green Star Design and As Built rated facility – the top category reserved for world-leading sustainability innovation – at Dexus’s 130 hectare masterplanned estate in Ravenhall.

In order to be world-leading, developers have to execute the fundamentals first, Chris adds.

“The right orientation, location for office, and even roller doors: there’s a myriad of obvious yet smart ideas you should be embedding in your design that’s going to set you up really well for success in terms of picking up those next features,” he says.

“Green Star has evolved and is no longer just about the built form and is inclusive of the precinct. The beauty of estates, rather than singular sites, is you can establish smart road layouts and connectivity, which is a fantastic base for sustainable operations.”

Chris says by focusing on a company’s operational costs, the extra expense of lights, daylight sensors and solar starts to make sense for both big and small companies.

“Those simple initiatives can save businesses between two to five dollars per square metre on operational costs,” he says. “For Electrolux, we focused on lighting and power-lighting systems and putting a battery system in the main switchboard. There’s a 300 kilowatt system on the roof that strategically picks up all the sunlight.”

“The mechanical system has enough redundancy to Power Up and Power Down, depending on the heat demands for the day. A mechanical design feature should have a number of smaller systems that can control zones, meaning it’ll be off for much of the day.”

By providing future-proofing initiatives and solutions, Dexus hopes to be with its customers for more than just one lease renewal.

“Not only do we think about sustainability in an environmental context, we also have to consider sustainability in the sense of allowing the facility to expand within its own skin,” Chris says. “We don’t take the typical developer approach of selling and moving on. We want to build for the long-term.” ■ MHD NOVEMBER 2021 | 31

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MHD SUPPLY CHAIN

SUSTAINABILITY IN THE RETAIL SUPPLY CHAIN

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Raghav Sibal, Managing Director, ANZ, Manhattan Associates, explains the facts, figures, and trends regarding sustainability in retail supply chains – and what the options are to cater to customer expectations.

he importance of sustainability in the retail industry is now more prevalent than ever, and its within the industry’s supply chain that the most fundamental aspects of sustainability reside. Today, consumers expect the ability to choose sustainable delivery options, and retailers must work to accommodate these modern expectations.

From quick delivery to split shipments, the current eCommerce boom has put supply chains to the ultimate test – but it comes at a great cost to the environment. To combat this, technology will always be a useful tool to innovate retail operations for the better, and for the greener. However, on top of this, new customer expectations for sustainability are proving that today’s consumers care more about sustainable delivery than retailers may think.

The fast-shipping ultimatum With the eCommerce boom now fuelling the retail industry, quick delivery and shipping has quickly become the biggest force against supply chain sustainability.

The emergence of two-day

shipping for “free” became mainstream in 2005, and with the release of Amazon Prime, and it has since started a chain reaction. For these major players, customers who paid an annual membership would be guaranteed two-day delivery for every order at no cost. This removal of shipping costs inadvertently hid the impact of the change in delivery timeframes from the customer, and as a result, behaviour began to change, as did expectations.

Fast forward about 10 years, and the delivery expectations jumped to one-day delivery and included free returns, still without any real impact felt by the consumer. Today, half of all consumers expect not to be charged for “standard” two-day delivery, and 62% say free delivery is their top consideration, according to new research conducted

by Manhattan Associates. However, in that same survey, 70% said they are prepared to pay extra for speed and convenience, such as one-hour, same day or Sunday delivery.

During this shift towards quick delivery, the impact behind the scenes on the supply chain and on the planet has been staggering. Global parcel shipments

have grown from 44 billion in 2014 to 132 billion in 2020 and are projected to approach 316 billion in 2026.

Then there is the resource capacity crunch — there simply are not enough trucks and drivers to deliver all of these packages and get them where they need to go on time. In fact, industry professionals rate the issue as the biggest challenge for supply chains in 2019. This has led to the rise of the gig economy, leveraging services like Uber and other courier-on-demand services, to fill the gap. But filling the need for capacity causes even more vehicles to be on the road, which leads to more traffic and more idling and even more carbon emissions.

GREENER DELIVERY OPTIONS FOR CONSUMERS Another impact of expedited shipments is the inability to consolidate at the distribution centre. When we place a two-day order for five items and all five are not available in the same warehouse, the retailer must source those items from multiple places around the country, creating multiple packaging, distribution, and delivery events for a

Transportation management systems with machine learning are needed to load vehicles more efficiently and optimise routes to drive fewer miles.

MHD NOVEMBER 2021 | 33

MHD SUPPLY CHAIN

single order, without having the time to optimally consolidate those items along the way.

Likewise, as online shopping rates remain high due to the impacts of COVID-19, sustainability is more important to Australian consumers than ever before, with 63% stating they would pay extra for a delivery service that was more environmentallyfriendly. New research from Manhattan Associates, Shippit and Greener also revealed 60% of Australian consumers are open to receiving a delivery at a later date if it meant that it was delivered more sustainably.

Due to the ongoing impacts of the pandemic and its convenience, home delivery is now sthe preferred delivery option for 69% of Australian online shoppers. However, consumers are not prepared to just accept the convenience of delivery at the cost of the environment, and they are increasingly aware of the growing impact the eCommerce sector is having on CO2 emissions.

Importantly, our research has also revealed that over half (60%) of Australian consumers indicated they often receive their online order in multiple shipments, and 81% of them said that they think this is an inefficient and unsustainable way of delivering goods. In fact, the same number (81%) also said they would prefer to receive their order at a later date if it meant that it would arrive in one consolidated delivery. A further 64% of consumers stated that they would be even more motivated to accept a longer delivery wait time - with all purchases consolidated into one package - if the delivery fee was free or discounted.

Demonstrating the efforts Australian consumers are already making to be more environmentally conscious, over 45% of consumers said that after placing an order online, they would usually check to see if the retailer offered a sustainable delivery option, such as carbon offset or order consolidation services.

As online shopping delivery rates and the corresponding impact on the environment continue to rise, while at the same time the issue of sustainability continues to move to the forefront of consumer’s minds, retailers and 3PLs will need to make sustainability a bigger priority. Those retailers who 34 | MHD NOVEMBER 2021

Global parcel shipments have grown from 44 billion in 2014 to 132 billion in 2020. don’t make sustainability a core part of their business will likely find that down the track they lose out on this potential competitive advantage and drive environmentally aware consumers to other retailers who are taking steps to make their delivery services greener.

THE ROAD TOWARDS A GREENER RETAIL SUPPLY CHAIN Today, consumers expect the ability to choose sustainable delivery options and retailers must work to meet shopper demands. However, in order to provide both continual improvements to operational efficiencies and insights so consumers have what they need to make an educated decision, supply chains need to become more unified. For this to happen, we need more intelligence, more flexibility and more insight injected into the retail supply chain.

In the distribution centre, intelligent warehouse management systems are needed to improve the speed of workflows, which subsequently reduces the need to expedite shipping, optimise carton sizing to maximise vehicle holding capacity, and orchestrate inbound and outbound trailer flow to minimise idle time and backlogs.

On the road, transportation management systems with machine learning are needed to load vehicles more efficiently, optimise routes to drive fewer miles, and model optimal consolidation and backhaul opportunities to reduce the number of vehicles travelling.

Likewise, Order Management Systems (OMS) are critical to helping minimise split shipments and intelligently source

from all inventories. This includes alternate store pickup locations like lockers to minimise travel distances, while inventory optimisation technology ensures that supply is more accurately placed where the demand will be, to reduce the amount of store transfers or unexpected replenishments. With innovations like advanced OMS, retailers are also able to navigate disruptions caused by COVID-19 by reviewing the rules of stock allocation, temporarily giving priority to in-store stock over warehouse stock, thus, freeing up any trapped inventory confined within closed stores. This is a great advantage for retailers whose physical stores have close for lockdowns or have their business operations disrupted for other reasons.

Optimising order sourcing allows retailers to use the stock available in their entire network, wherever it is located. A smart OMS allows retailers to use the ‘pool’ of physical stores in large urban areas to consolidate group orders to offer more efficient and sustainable delivery options, compared to sending individual items from disparate locations. This increased delivery efficiency will also help build a stronger connection and more favourable brand perception amongst consumers.

In addition to using store level inventory to ship orders to a customer’s home, it can also be deployed for clickand-collect orders. With new fulfilment options enabled by the store, consumers can click, collect, and return goods at their own convenience, eliminating courier runs and lessening CO2 experience in the supply chain. ■

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MHD WAREHOUSING

SUREFIRE SORTING RESULTS Khurshed Mirza, Director of Warehouse Automation (APAC) at OPEX, and Glen Urquhart, Sales Manager at Dexion Liverpool, describe how implementing OPEX’s Sure Sort system for an innovative local 3PL revolutionised its operations.

OPEX’s Sure Sort system in action for NPFulfilment.

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PFulfilment is a 3PL provider that has carved out a niche for itself in small order fulfilment, says Glen Urquhart, Sales Manager at Dexion Liverpool. Dexion – a systems integrator – has a long working relationship with OPEX, which creates innovative warehouse automation solutions, and sports a presence in five continents with 31 of the Fortune 100 companies as key clients.

But roughly five years ago, NPFulfilment was faced with a challenge in need of a solution.

“The problem that NPFulfilment was running into was picking a large number of small orders as customer behaviour was changing,” says Glen. “By small orders I mean small dimensionally – as well as in terms of volume and weight – and ‘small’ in the sense of there being only one or two items per order.

And this is your classic e-commerce 36 | MHD NOVEMBER 2021

“

We have confidence that our technology is the best out there. But without the work of great systems integrators like Dexion Liverpool we couldn’t be assured of optimal client results.

With Glen and his team, we know we can.

”

order fulfilment challenge.”

Both Glen and Khurshed Mirza, Director, Warehouse Automation APAC at OPEX, refer to NPFulfilment CEO Rodney Bartley as a “visionary” who has

always been looking over the horizon to see what advanced technology could be implemented to guarantee the best service offerings to their customers.

“Rodney did a lot of research and homework to see what was available across the market,” Glen says. “At a tradeshow in Chicago he came across OPEX’s Sure Sort system and was able to see it in action. It was exactly what Rodney was after. So, he engaged OPEX, and then I was brought in to assist bringing the equipment to Australia and implementing it for use in Australia – the first time Dexion Liverpool has implemented a Sure Sort in the Australian context. It was exciting for us.”

THE SURE SORT SYSTEM The Sure Sort system has its origins, says Khurshed, in a 2005 mail automation system that sorted mail into

MHD WAREHOUSING

themselves, says Khurshed. While previously NPFulfilment required eight workers to sort its orders, with Sure Sort it now takes only three workers.

Furthermore, the Sure Sort has allowed NPFulfilment to multiply the number of orders it manages by a factor of five with the same amount of labour as was used prior to Sure Sort’s implementation.

Glen Urquhart, Sales Manager at Dexion Liverpool. various locations using autonomous robotic vehicles.

“That was then further refined, and an offshoot was the Sure Sort, which is an automatic sortation system – or what we could commonly call an automatic order consolidator,” Khurshed says.

“The basic idea is that you pick a large batch of items, bring it to the Sure Sort – whether manually or through a conveyor – and then drop each singular item onto the Sure Sort, which then sorts the items into predetermined sort locations while occupying a very small warehouse footprint.”

A key advantage to the Sure Sort, continues Khurshed, is its scalability.

“As a piece of machinery – the scalability of the Sure Sort is superb,” he says. “It’s a solution where you can scale up in terms of the number of sort locations as well as the throughput of the system. You could go to a maximum of 11 expansion modules, which would give you a length of 14 metres, and a maximum throughput of 2400 items per hour. Additional iBOT robots can be added, too. And what is an iBOT? It’s a self-charging, autonomous robotic vehicle that runs within the aisles of the Sure Sort with 100 per cent access to all sort locations.”

On those terms alone the simplicity and reliability of the Sure Sort system is an amazing advantage for a small footprint, flexible 3PL like NPFulfilment, Khurshed says. But its advantages go beyond that, into the realm of sustainability.

“It runs on Wi-Fi technology, so it communicates with the controller using a common technology, plus there are no batteries,” he says. “It has ultracapacitors that power the iBOT. The iBOT regenerates and recharges as it rolls down the columns, thereby giving the

Khurshed Mirza, Director of Warehouse Automation (APAC) at OPEX. consumers very low energy consumption while the machine is running.”

To illustrate just how energy-efficient the Sure Sort system is, Khurshed provides a telling comparison. “To give you an equation, a full-length Sure Sort system’s consumption of electrical energy is equivalent to an electric oven in your kitchen. That’s the innovative, environmentally sustainable technology that we have deployed.”

SUREFIRE RESULTS Glen says that NPFulfilment’s CEO Rodney Bartley zeroed in on an area of 3PL that was underserved in the market.

He agrees with Khurshed that the scalability of the Sure Sort is paramount insofar as it allows for growth within the niche market segment of small orders, flexible delivery, quick turnaround times, and the like. He adds that for a company like NPFulfilment – which isn’t aiming to compete with “the Tolls or DHLs of the world, because that’s been done” – the Sure Sort is perfect.

“NPFulfilment started off pretty typically in that they had a lot of small parts stored in shelving, which they were picking orders out of, before moving onto some other technologies like very small conveyor systems to transport cartons,” Glen says. “But the tipping point for them came when they had to fulfil about 12,000 to 15,000 units per day. Up the chain that equates to about 5000-6000 orders, roughly, per day.

And it just wasn’t economically viable.

Putting in extra bodies, adding labour, was past the point of diminishing returns – and could be counterproductive if workers were tripping over each other – so they had to deploy a technology that would move them beyond that. With the Sure Sort they certainly got that.”

And the basic facts speak for

THE OPEX ADVANTAGE “The success we’ve had implementing the Sure Sort for NPFulfilment is just validation again for me of why we partner with OPEX,” says Glen. “I don’t work for OPEX, but Dexion Liverpool is a systems integrator that stakes its reputation on our own best practice – but also working with the best solutions.

The Sure Sort System isn’t just cutting edge for the moment – it’s about 10 years in front of anyone else’s offering on the market. We’ve worked with all the major players – but OPEX stands out well ahead of the pack.”

Khurshed is equally impressed with the work that Glen and Dexion Liverpool do in implementing and integrating OPEX technologies to get the most out of them for buyers. “We have confidence that our technology is the best out there,” Khurshed says. “But without the work of great systems integrators like Dexion Liverpool we couldn’t be assured of optimal client results. With Glen and his team, we know we can.”

The Sure Sort system was implemented at NPFulfilment before the COVID-19 pandemic hit. With a visionary CEO at NPFulfilment, leading technology from OPEX, and seamless integration from Dexion Liverpool – NPFulfilment has capitalised on the accelerated shift towards e-commerce and flexible small orders while everyone else is scrambling to catch up.

“Khurshed and I can see that the supply chains right now in Australia – with Christmas coming up – are at full stretch,” Glen says. “Everyone else is panicking about what Christmas looks like this year, but Rodney Bartley’s investment in the Sure Sort put him well ahead of the curve – and NPFulfilment can accommodate multiple cut-off times heading into Christmas. He’s in a much better position than most other people we deal with. And that’s thanks to him and to OPEX.” ■ MHD NOVEMBER 2021 | 37

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MHD WAREHOUSING

A NEW PLAYER IN THE PLASTIC PALLET RENTALS MARKET Specialised plastic pallets are used across many industries in the materials handling sector. MHD talks to Alan Morgan, National Marketing Manager for Ozkor about the advantages of its unique plastic pallets and its new rental service.

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ounded in the mid 1990s, Ozkor Pty Ltd, leading ISO 9001 certified supplier of injection moulded plastic pallets and related materials handling products – such as collapsible bulk bins, steel roll cages and stillages – now includes many of Australia’s major companies among its wide range of customers.

Ozkor’s specialisation in designing and developing reusable plastics pallets to suit specific industry needs was made with an eye to the Australian market – as in the past uptake of plastics appeared to be lagging compared to the rest of the world. In recent times, however, many more companies have been giving consideration to making the change to plastic alternatives.

According to Alan Morgan, National Marketing Manager for Ozkor, the reasons for this are many and varied – with particular concerns for the environmental impact of single use packaging and ever-increasing demands on timber reserves. The most common alternative to plastic pallets has traditionally been wood pallets, mainly due to their perceived cost effectiveness. In recent times, however, increases in the cost of timber and unreliable supplies of timber pallets has focused industry on seeking alternative options that can stand the rigours of time more effectively. Whether you buy – or prefer to rent – Ozkor is now able to meet the demands necessary to support Australian industry, says Alan.

Today, Ozkor has evolved its service proposition to encompass a diverse range of industries

Ozkor’s PPX-1165 heavy-duty plastic pallet. which include, among others, the Australian Defence Force, grocery retail chains and pharmaceutical companies – all of which demand high standards of quality, long life durability, hygiene, and value for money.

SPECIALISED PLASTIC PALLETS FOR SPECIFIC CONDITIONS In the development of its new PPX-1165 plastic pallet rental model, Ozkor took on the challenge businesses were facing with lower quality pallets – which are more susceptible to damage have become less and less cost-effective over time.

“Our specially designed plastic pallets are geared towards companies who require a high standard of product performance at a competitive rate,” Alan says. “The pallets are suitable for industries with hygiene requirements and where extreme operational conditions exist.”

The PPX-1165 is a heavy-duty reusable plastic pallet designed with patented technology to enhance its capacity to absorb impacts in the warehouse.

For industries dealing with extremely cold or hot conditions – hygiene requirements or specific chemicals – alternatives to timber pallets are increasingly in demand.

“Companies have tried other materials such as aluminium in the past, but that has too high of a scrap value,” Alan notes. “The pharmaceutical and food industry can’t afford to absorb dangerous pathogens and bacteria or the splinters common in wooden pallets.

One of our customers, for example, can’t use the timber option, because it creates a fire hazard because of the chemicals that must be stored on them.”

As more warehouse operations shift towards automation, the pallet specifications need to change along MHD NOVEMBER 2021 | 39

MHD WAREHOUSING with the new technology.

“The tolerances in automated warehouses are so precise that a distorted wooden pallet can block up the whole system for a prolonged period of time, resulting in significant costs in lost production and other down time financial penalties,” he says.

On the other hand, where manual handling is still an important consideration, Ozkor’s pallets provide a clear safety advantage, insofar as they are much lighter to pick up than timber ones. The comparative lightness of plastic pallets also translates to an added advantage in being more economical for transportation costs when shipping goods by road around the country.

OZKOR MOVES ONTO THE RENTAL STAGE Cognisant of businesses’ ever-present desire to cut costs, Ozkor decided to offer its customers the option to rent its PPX-1165 pallet. The PPX-1165 can be rented in a closed loop supply chain

system based on a three-, four-, or five-year agreement.

Alan says the PPX-1165 pallet is manufactured with a specially formulated grade of material to meet extreme operational environmental and operational challenges.

“It’s a heavy-duty plastic pallet designed with patented technology to enhance its impact-resistant capabilities under extreme operational conditions,” he says.

“The specialised grade of virgin polypropylene copolymer materials used will operate in extreme temperatures ranging from –30°C to as high as 50°C in warehouse environments.”

Built-in side-blocks provide extra protection against materials handling equipment damage, by incorporating patented nylon inserts inside the block structure – enhancing impact resistance in pallets’ traditionally vulnerable areas.

“When the pallet is moulded there’s additional reinforcing inside the body of the uprights to make them

more impact resistant,” Alan says.

“Environments like abattoirs create a lot of wear and tear – so it’s a muchneeded added value characteristic.”

The pallet is able to safely handle 1350 kg of product in drive-in racking, which increases racking safety and unit load efficiencies.

Alan sees Ozkor’s new rental model as providing flexibility and reliability into a pallet-rental market that has for too long lacked competition and innovation.

“We are providing these pallets to be used in a closed loop situation where the customer has control over the asset,” he says. “The PPX-1165, now available to rent, is in keeping with our proud history of saving our customers from unnecessary costs – as well as from unnecessary headaches – through superior quality and service.” ■ For further information contact: Ozkor Pty Ltd, Ph. O2 96728588: Email, info@plasticpallet.com.au, Web-site: www.plasticpallet.com.au

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MHD INDUSTRIAL PROPERTY

THE FUTURE OF GROCERY LOGISTICS As the largest grocery logistics landlord in Australia, Charter Hall is powering the food and grocery industry at a time of unprecedented growth. Matthew Cox, National Industrial Delivery Manager for Charter Hall explains how the sector has been disrupted by the digital economy in the past 18 months, and why automation will supercharge the online grocery space in the future.

O

ver the past financial year and during the pandemic, the food and grocery sector has observed record growth in Australia, as consumers reduced their discretionary spending and focused primarily on essential goods amid uncertain economic conditions.

“The Australian retail sector is worth about $340 billion according to the Australian Retailers Association, and the supermarket, grocery and fresh food market make up nearly a third of that landscape,” says Matthew Cox. “It’s the single biggest part of the Australian retail landscape and the most resilient.

It is why Charter Hall Group has made a substantial investment in this sector and has focused on partnering with tenant customers that need both bricks and mortar retail outlets and supply chain 42 | MHD NOVEMBER 2021

logistics facilities to ensure the success of their business models.”

Charter Hall’s substantial portfolio is occupied by major supermarket players Coles, Woolworths, Metcash and ALDI, in addition to other prominent food and beverage manufacturers who supply these supermarket players including Ingham’s, Coca-Cola Amatil and Arnott’s. Purely online prepared food companies, like Marley Spoon are also part of the portfolio and in a business segment that is growing strongly. For the 2020-21 financial year, 40 per cent of Charter Hall’s record $10 billion transactions were sale and leaseback arrangements, with 24 per cent of those being in the food and staples retailing sector. Those businesses strategically chose Charter Hall to be their long-term

property partner and landlord.

Matthew explains the dynamics of this sector have been significantly disrupted by the pandemic. As consumers re-evaluated their shopping habits and looked for ways to reduce their time in supermarkets, online grocery retailing has spiked in popularity. This includes shoppers using “click and collect” services and delivery direct to their homes.

“Market growth within the online food logistics sector was prominent for two or three years before COVID, but the pandemic really supercharged this trend,” says Matthew. “In 2018, it only made up two or three per cent of the market, and people were sceptical that it could expand much further. But since COVID, online grocery sales have grown

MHD INDUSTRIAL PROPERTY

“

Today’s consumers are busier than ever and looking to save time wherever they can. Home delivery meal kits and online grocery services are quickly filling this gap.

Matthew Cox, National Industrial Delivery Manager for Charter Hall. beyond expectation with a 45 per cent growth forecast this year alone according to research company IBISWorld.”

Matthew says major food retailers across Australia are looking at their online fulfilment capabilities and realising that they need to improve the efficiency of their supply chains to adapt to this ‘e-grocery’ boom.

“Suddenly, nearly all major briefs for traditional bricks and mortar retailers have an e-commerce component,” he adds.

This “e-grocery” boom is not just limited to major grocery retailers, Matthew explains. Disrupting the online grocery space is home delivery meal kit providers such as Marley Spoon, which offer consumers fresh produce and recipes as an alternative to shopping in grocery stores. As more customers stayed home to cook during the 2020 lockdowns, Marley Spoon almost doubled its Australian customer base to 114,000 in the June 2020 quarter. To keep up with this accelerating demand, the company signed a 10-year pre-lease for a new state-of-the-art 14,200 square metre facility in Wetherill Park, Sydney, delivered by Charter Hall.

“Today’s consumers are busier than ever and looking to save time wherever they can. Home delivery meal kits and online grocery services are quickly filling this gap,” says Matthew.

He explains that for most food logistics retailers, this online boom has resulted in an increased reliance on automation within warehouse facilities, in order to enhance their supply chains and keep up with this massive market growth.

“There are two types of automation we’re looking at here,” he says. “The

”

first is digital process automation such as software applications and artificial intelligence – systems that can enhance data collection and give food retailers greater control of their inventory storage. This allows tenants to hold food products for exactly the right amount of time, saving them massive amounts of money and avoiding spoilage.”

“The second type is physical process automation, which refers to tasks automated through robotics and sensors. This typically takes the form of automated guided vehicles, autonomous robots and automated storage and retrieval systems.”

Charter Hall is working with key tenant customers Woolworths and Coles to deliver next-generation automated fulfilment centres, to fast-track the picking, packing and delivery of online groceries that are in high demand.

For Coles, Charter Hall is currently delivering two customer fulfilment centres in Sydney and Melbourne.

These state-of-the-art facilities will incorporate a specialised top-loading automated storage and retrieval system designed by the UK software and robotics company Ocado.

“Once completed, whenever someone in Sydney or Melbourne submits an online grocery order for home delivery,

it will be fulfilled by these Coles Customer Fulfilment Centres,” says Matthew. “These facilities will be part of a “hub and spoke system”, connecting to smaller distribution centres that provide a last-mile delivery solution for these metropolitan areas, located within a one-hour drive.”

Charter Hall has also worked with Woolworths on delivering a new automated facility in Melbourne.

“Woolworths has always been a big driver of automation within logistics, successfully overhauling their entire supply chain as part of their initial rollout 15 years ago,” says Matthew. “We’re now part of the second rollout, and the landlord of their latest automated distribution centre in Melbourne with a lease of at least 20 years.”

Matthew explains that this automation wave is just starting to take hold in Australia, as the cost versus benefit equation evens out.

“Adding automation to a facility used to be an incredibly expensive operation, which could take up to a decade for payback. But now, it only takes three to four years to see those returns. Rather than viewing automation as an exclusive or competitive edge, our customers understand that it is simply necessary to compete in the current grocery logistics market.”

“Above all else, we’re looking to deliver automated solutions for our grocery customers that can be used both now and far into the future,” Matthew explains. “Like many other sub-sectors of Australia’s retail landscape, online grocery delivery is here to stay. From an industrial and logistics standpoint, we’re excited to be partnering with and at the forefront of this growth for our customers.” ■

Charter Hall’s substantial portfolio includes an ALDI distribution centre in Victoria.

MHD NOVEMBER 2021 | 43

MHD SUPPLY CHAIN

ELEVATE SETS THE PACE FOR SUPPLY CHAIN INNOVATION AND TRANSFORMATION As media partner of Körber Supply Chain’s inaugural Elevate APAC conference, MHD attended a number of roundtable sessions. The must-see supply chain event featured topics such as diversity, sustainability and change management, alongside many customer success stories.

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ith more than 45 sessions across three days, Körber Supply Chain’s Elevate APAC conference was jam-packed with roundtables, virtual facility tours and group activities to ignite collaboration and innovation.

Having delivered some of the region’s largest transformation projects, Körber’s Elevate presented a chance to hear from Australia’s most innovative businesses.

The roundtable discussions created a unique opportunity for organisations to reflect and share how they have dealt with the growth and challenges of the last 12 months.

Ryan Parker, Supply Chain Project Manager at Catch Group says the pandemic has been both an exciting and challenging time for the leading retailer.

“We’re on a steep growth curve and the pandemic has thrown us a number of challenges,” he notes.

Being able to build a resilient supply chain has been absolutely critical to Catch’s success. “Until recently we have operated from one DC in Victoria. That comes with its constraints, so we’ve had to ensure our network initiatives allow us to be flexible and resilient,” Ryan says.

Improving storage capacity, picking and packing with the deployment of Körber’s AMR solution has played a key role in the retailer being able meet its customer promises.

“We’re going to be expanding our

44 | MHD NOVEMBER 2021

Female senior leaders met to question what needs to be done to attract more women into supply chain. footprint into new markets with the commission of a Brownfield DC in Sydney. This is a key part of our principle of creating a resilient, flexible and scalable supply chain that’s as close to our customers as possible,” he adds.

Similarly, Officeworks saw a 200-300 per cent growth in online demand, according to Tom Weinmann, Head of Transformation at Officeworks.

“One of the most effective ways that we managed demand was to utilise our store network. We managed to maintain our existing service levels for or customers by utilising the true online pick and pack capabilities we had built in store,” he says.

Officeworks also invested in a new DC in Victoria, with scalability and flexibility at the core. “The new DC is triple the size of what we had previously, and we’ve partnered exclusively with Körber, from WMS all the way to AMR tech – this will set us up for our next phase who of growth.”

THE STEPS TO A SUSTAINABLE SUPPLY CHAIN Hayley Jarick, CEO at the Supply Chain Sustainability School says that as the world becomes more interested in supply chain as a result of global disruptions and delays, there is more of an emphasis on sustainability than ever before.

MHD SUPPLY CHAIN

“

I’ve been fortunate to be surrounded by not only a good team full of inspiring leaders, but also inspiring customers. Every project I work on I grow and learn from everyone involved.

Nishan Wijemanne, Managing Director APAC. “People are paying a lot more attention to the social sustainability in our supply chain – not just the wellbeing of employees but also overseas suppliers,” she says.

When it comes to sustainability, Hayley said people commonly ask themselves: “what impact could I possibly have?”

However, every step counts and it’s about what you can do today to make a change.

“People let great get in the way of good – but people should do just one thing, and place more emphasis on celebrating when people try and make a positive impact.”

ATTRACTING THE RIGHT SKILLS IN THE SUPPLY CHAIN As the impact of global supply chain disruptions continue to impact the way we live and work, there is a distinct need for organisations to attract more talent.

Brett Kelly, General Manager Supply Chain at Officeworks says the company has identified the need to engage with talent in CX, IT and supply chain roles.

“These are the three areas we have identified where there will be a grab for talent and a real shortage. So, we’re making sure we clearly communicate to these candidates and tailor our recruitment strategy to ensure we grab their attention,” Brett says.

For Brett, a key part of attracting and retaining good talent is the diversity of the projects they work on. “If you recruit good people and give them exiting things to work on with scope and ownership to do that within a framework you are all aligned to, you’ll find that most people want to work in that environment.”

Rizan Mawzoon, Head of Transformation at Körber Supply Chain says he is grateful for the

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development and leadership he has received throughout his career in supply chain and technology.

“I’ve been fortunate to be surrounded by not only a good team full of inspiring leaders, but also inspiring customers.

Every project I work on I grow and learn from everyone involved,” Rizan says.

IMPROVING DIVERSITY IN SUPPLY CHAIN Fewer than one in 10 employees in the supply chain industry are women and there is a 21 per cent gender pay gap.

At Elevate, female senior leaders and change makers from across the industry met to ask: what needs to be done to attract more women into supply chain?

For Jackie Robb, Chief Operating Officer at Chemist Warehouse and Kari Banick, General Manager at Linfox, they both fell into the supply chain by accident.

“I loved people and process aspect of supply chain, realising ideas and implementations and the opportunity to implement the newst of the new technology,” Kari says.

While most of the panellists fell into their careers in supply chain and

technology, they were unanimous in their gratitude and enthusiasm for the opportunities the industry has given them and each spoke of their commitment to making sure they improve diversity across the board.

WHAT’S NEXT FOR KÖRBER? Nishan Wijemanne, Managing Director APAC at Körber Supply Chain APAC closed the conference with a focus on 2022. “As we reflect back through our journey as Voice ID in 2014, to Cohesio Group in 2018 to now Körber Supply Chain we’re excited about what the next year will bring. We’re investing heavily into our teams and building our skills set and capabilities so that we keep evolving through this period of rapid change,” he says.

Nishan adds 2022 will feature more of the same approach from the team at Körber, with a focus on strengthening relationships and partnerships to drive the industry forward. “This has been our recipe to success, and we will continue to improve on this through building and consolidating our strategy across software, tech and automation,” he says.

“We’re excited to take the APAC region to the next level through our innovative solutions and dedicated expert team.”

With so many major transformation projects under its belt, including across its software, AMR, voice, vision and mobility solutions, Nishan said it’s a clear indication of the trust that Körber’s customer place in the team and the solutions.

“The growth we are experiencing across our broader portfolio of services serves as a stamp of trust from our clients and we look forward to continuing to support our partners as they navigate their transformation journeys and conquer supply chain complexity.” ■

Rizan Mawzoon presenting at Elevate APAC conference.

MHD NOVEMBER 2021 | 45

MHD PROPERTY FOCUS

SHORTAGES AND OPPORTUNITIES IN WESTERN SYDNEY Demand for industrial land is far outstripping supply in Western Sydney.

David Hall, National Director – Department Head, Sydney West Industrial, and Jock Tyson, Executive | Industrial at Colliers, discuss trends, innovations, and prospects for the area as we head towards 2022.

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avid Hall, National Director – Department Head, Sydney West Industrial at Colliers, says that the Western Sydney land market is experiencing levels of demand well in excess of available supply.

“Demand is at record highs, and will remain so for some time,” says David. “Looking at the market supply and demand for existing assets, the current amount of leasing demand in the market exceeds current supply by a factor of 3.6.”

This is no coincidence, says David, as COVID-19 has been the catalyst placing significant pressure on the warehousing and distribution sector.

“Tenant demand has continued to accelerate as occupiers take a deeper look into their supply chains in order to find further efficiencies and identify new opportunities – where locational efficiencies can improve their internal costs and delivery timeframes.”

Vacancy overview in Western Sydney.

46 | MHD NOVEMBER 2021

To illustrate this point, David draws attention to Australia Post’s recent activity in the area, having taken up three different short-term leases across Western Sydney to accommodate the increasing movement of online orders and supply chain pressures – all in the past three months.

BUILD TO CORE AND INNOVATION AGENDAS David says that large institutional developers, who are competing to grow funds under management in Western Sydney – where prime development opportunities of scale are increasingly scarce – have adopted a ‘build to core’ strategy: a long term-approach of developing and holding quality industrial assets within their portfolios.

“It’s not only the security of returns that has reinforced this approach – due to record low vacancy rates of 0.4 per cent across Western Sydney [for

Mamre Road Precint ownership map. properties of 5000 sqm or more],” he says. “There is also the key advantage of facilitating and retaining prime leasing covenants within their portfolios.”

So, what are the kinds of supply chain innovation agendas that companies are looking at in this industrial property context? David says that there is a broad, overarching reconsideration of supply chain management, as well as the unfolding role of automation.

“The warehousing and distribution sector is constantly evolving as occupiers more frequently review their supply chain models and look to find efficiencies in their outbound logistics costs (movement of stock to store or direct to customer). In some instances this final stage of the supply chain can contribute up to 60 per cent of the total

BROUGHT TO YOU BY

This shot shows the Mamre Road precinct, as taken from above Aldington Road. In the distance is the Western Sydney International Airport under construction. cost. Utilising older style facilities with innovative solutions (e.g automation) in well positioned central locations could provide cost and delivery timeframe advantages (particularly when delivering direct to customer).

Getting goods from A to B, or warehouse to consumer, is clearly an important pecuniary consideration, but it’s also intertwined with changes in customer expectations. And this is where automation comes in, David says.

“Automation within distribution facilities is enabling new levels of efficiencies to be met,” he says. “This is beneficial for cost saving reasons over time, but also the ability to move more inventory through the same footprint in a strategic location to faster service customers in the current consumer environment where there are expectations for fast and consistent results.”

David points to the new Coles Customer Fulfilment Centre – approaching completion at Cowpasture Road, Wetherill Park – as illustrative of the dramatic move towards improved automation and efficiency. “With world leading single-pick fulfilment technology and home delivery solutions, Coles is able to provide an improved service to online customers and aims to increase its market share through offering a better service than its competitors.”

WILL INDUSTRIAL LAND SUPPLY IN WESTERN SYDNEY BE INCREASED? David says that the main constraint on development is planning and servicing land, and the timeframes within which planning and services are finalised and delivered.

“This is evident in the Mamre Road precinct, which is awaiting the DCP [Development Control Plan] release that will allow for the majority of the precinct’s development to commence.

“Looking further outwards from the current development spotlight, areas outlined within the Western Sydney Aerotropolis Structure Plan have potential to provide some relief to current levels of demand,” David says.

“However, this has yet to be finalised following the public exhibitionof the initial Precinct Plans in March of this year, and now the more recent exhibition of the refined Phase 2 plans in October.”

RECENT DEVELOPMENTS AND THE ROAD AHEAD Jock Tyson, Executive | Industrial at Colliers has had his eye on the Mamre Road precinct for some time – having spoken earlier this year to MHD about its status. Earlier, Jock had noted that the short-term development uncertainty around Mamre Road was a result of having to wait for the DCP for the precinct to be finalised. In our

last conversation, Jock noted that the DCP was expected to be finalised in Q3 of 2021.

So, has the DCP been finalised?

“Since we last spoke, there has not been a result in its finalisation,” Jock says. “The main issues that are being addressed are largely around the main development controls: the delivery of key infrastructure such as the road network and the management of stormwater.”

But Jock does expect the DCP to be approaching finalisation soon.

“The existing developers within the precinct have been actively involved in driving these outcomes through regular engagement with the relevant regulatory departments.”

Looking more broadly at the Western Sydney market as we move towards 2022, Jock emphasises that broad trends will follow much the same patterns they are now.

“I would say that Colliers’ broad view is that, ultimately, we are going to see rental growth due to continued supply shortages together with high levels of demand. In this environment, occupiers must begin discussions as soon as possible in relation to their real estate needs. By starting those conversations now, occupiers give themselves more time. And that additional time will provide opportunities for better outcomes – both commercially and operationally.” ■ MHD NOVEMBER 2021 | 47

MHD WAREHOUSING

THE RIGHT WMS PRESCRIPTION FOR PHARMACEUTICAL DISTRIBUTION Ryan Klose, Executive General Manager of National Pharmacies, explains why the organisation chose Microlistics WMS to optimise its national distribution capabilities – pairing an approach to problem solving with a mutual commitment to technological excellence.

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he story of National Pharmacies is the story of healthcare, and getting proper healthcare to the community at large, says its Executive General Manager, Ryan Klose.

Founded in 1911 – and categorically a non-profit organisation – it is a mutual organisation where profits made through its diverse operations are returned to members in the form of benefits and discounts.

It has been quite a success story, says Ryan. With 300,000 members and roughly 70 stores across the nation, it is also one of five wholesalers that can wholesale pharmaceuticals in Australia.

It is a unique organisation insofar as it combines large-scale operational and business success with a values-oriented dedication to customer service.

“That’s why members join, because it’s a place where people can walk in and feel a part of something bigger – somewhere where their own health stories are listened to and where they’ll receive more hands-on assistance, because we have more pharmacists in our stores than competing discount pharmacies that try to lower their costs by reducing labour costs.”

Recently, National Pharmacies elected to implement Microlistics WMS to drive its principal distribution centre operation in South Australia. The facility handles a wide range of pharmaceutical products, including over the counter, prescriptiononly and ethical prescription medicines stored under a range of temperature, compliance, and security 48 | MHD NOVEMBER 2021

Microlistics WMS optimises National Pharmacies’ distribution of a wide range of pharmaceutical products, including over the counter, prescription-only, and ethical prescription medicines.

conditions. Other products include optical and fast-moving consumer goods, says Ryan.

“We are very pleased to have established this new partnership with Microlistics, which forms part of our broader technology transformation,” he says. “Their flexible and agile warehouse software will enable us to advance operational productivity further, continuously improve our quality services, and take advantage of emerging growth opportunities.”

WHY MICROLISTICS? Ryan says that a key reason National Pharmacies chose Microlistics is because its cultural values aligned with its own.

“Compared to some of its competitors, when we talked to them it felt like we

were talking to a family company – both in terms of the trust they were able to engender as well as that sense of deep institutional knowledge built up over many years. I could tell that their personnel mostly came from the warehousing industry, and so had the credibility of knowing how to walk the floor of a warehouse and what it actually means to deliver an outcome on the ground, notwithstanding the highlevel sophistication of their technology.

That credibility makes leaders like myself, who are involved in change management, more comfortable.”

But that is only half the story, Ryan says. While maintaining the ethic of a family-style company, Microlistics also offered levels of innovation – particularly with regard to maximising

MHD WAREHOUSING

product from A to B, the actual process of that movement simultaneously records temperature and security measurements.

“It’s that emphasis on the richness of data that set Microlistics apart, and that extends to areas like workforce management – which remains a big part of our operations given the variety of products we deal in. Their WMS can really create operational and data linkages between all the aspects of our warehouse operation.”

National Pharmacies warehouse personnel will access the WMS via Microlistics’ recently released touchscreen user interface for RF-scanners and other Android based devices. the use and value of data – that surpassed competing WMS options on the market.

“Microlistics didn’t have that old ‘legacy’ mindset that a lot of other potential WMS providers still had,” Ryan says. “When dealing with other bidders for our business, they would often open up and say to us, ‘Look, to keep it simple, it’s about moving a box from A to B’. Microlistics didn’t start the conversation that way. Instead, they said it wasn’t just about moving a box from A to B, but collecting and analysing the data from that journey to deliver fresh insights into our operations. That really intrigued us. While others were telling us how their WMS fit into particular generic areas, Microlistics was much more focused on working out how their technology could be tailored to fit our unique requirements.”

Ryan says that there are so many areas where a company such as National Pharmacies needs to maintain optimal standards – including temperature controls, alarm security, and privacy considerations.

“Microlistics talked about the ability to adapt a lot of these factors to IoT technologies to gather and make best use of data collection,” he says. “Instead of recording the number of transactions – boxes moving from A to B, say – and separately making records of temperature and security considerations, Microlistics offered a granular level of analysis such that when you move a

“

Microlistics didn’t have that old ‘legacy’ mindset that a lot of other potential WMS providers still had …

While others were telling us how their WMS fit into particular generic areas, Microlistics was much more focused on working out how their technology could be tailored to fit our unique requirements.

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AN INNOVATION MINDSET

Ryan is big on data and the power of machine learning to help predict trends and properly allocate healthcare products and resources across National Pharmacies’ many stores.

“Introducing machine learning into our operations was very important to us,” he says. “Being able to harness data, flag characteristics that are influential in determining how demand flows might change – and using machine learning to autonomously determine based on probabilities whether inventories need to be increased two- or three-fold in certain areas – is incredibly important in properly distributing pharmaceuticals in this day and age.”

Microlistics impressed Ryan because it is also dedicated to realising the potential of machine learning in its warehouse systems. “They talked to us about how they were working on implementing and refining machine

learning to manoeuvre pick faces to make sure they were always dynamic.

This is tremendously important, because the biggest risk in any warehouse is when the pick face of where your final pick is going to come from to fill an order turns out to be empty. They were upfront in telling us that they were still developing these capabilities – but that they were committed to using data collected from previous picking procedures and integrating it with machine learning to minimise the major vulnerabilities that afflict complex warehouses such as ours.”

BETTER TECHNOLOGY, BETTER PERSONAL SERVICE Ryan says that the implementation of Microlistics’ WMS dovetails nicely with the value National Pharmacies places on personal service.

“We want to retain our values commitment to building relationships with our customers and members, and to double down on our consultative selling approach,” he says. “Because every one of the 15 million visitors that passes through our stores has a healthcare story, and that story is connected to a healthcare solution or product. With better automation, better data utilisation, better machine learning – all the benefits that Microlistics’ WMS brings to our distribution centre – we can be assured that we not wasting any of our pharmacists’ time and that the right products are distributed to the right place at the right time to support the individual we’re dealing with at any given moment. Our story at National Pharmacies is one of commitment to the health of our communities, and that story is comprised of every individual’s healthcare story in which we play a part.

That’s ultimately what we’re all about.”

Archival Garcia, Microlistics General Manager – Commercial, says that he is proud that National Pharmacies chose Microlistics as a partner in this enterprise. “The ongoing pandemic has stressed every point in the supply chain, but pharmacies in particular are one aspect that cannot afford a drop off in product service and availability. We are absolutely invested in making sure we provide Ryan and the whole National Pharmacies team with the best possible outcomes to further their goals.” ■ MHD NOVEMBER 2021 | 49

MHD ASCI

MODERN SLAVERY IN THE SUPPLY CHAIN MHD asks Nicholas Bernhardt, Informed 365 CEO about modern slavery – and learns why awareness is key to halting its influence over global supply chains.

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HAT IS MODERN SLAVERY?

It’s something that a lot of people think only happened hundreds of years ago. But it’s more prevalent today than it was yesterday and it will be more prevalent tomorrow than today. By my explanation, modern slavery is forcing someone to do something they do not want to do. The technical definition involves slavery, servitude, human trafficking, forced labour, debt bondage, forced marriage, child labour and the sale or exploitation of children.

WHY IS THE PROBLEM GETTING WORSE? There’s a lot of money to be had in it, which is the biggest problem. Slave labour is the second highest grossing criminal activity behind the drug trade.

The COVID-19 pandemic has also pushed vulnerable people into more desperate situations – when people are desperate, they’ll take on labour they typically wouldn’t.

HOW IS INFORMED365 HELPING CURB THE PROBLEM? Informed 365 is an Australian based ESG (Environment Social Governance) tech solution that helps companies visualise, monitor, track and engage with their supply chain. Larger companies often have thousands of suppliers so we help engage with the suppliers efficiently without materially adding to the workload. The collected data then underpins a modern slavery statement.

WHAT IS THE MODERN SLAVERY ACT? The Modern Slavery Act requires entities based, or operating, in Australia, which have an annual consolidated revenue of more than $100 million, to report annually on the risks of modern slavery in their operations and supply chains, and actions to address those risks.

50 | MHD NOVEMBER 2021

Forty million people are estimated to be engaged in modern slavery.

These organisations are required to submit modern slavery statements, describing the risks of modern slavery in the operations and supply chains.

The statements must also include information about actions taken to address those risks.

WHAT ARE THE PENALTIES FOR MODERN SLAVERY BEING A PART OF A COMPANY’S SUPPLY CHAIN? With the current legislation, there are no penalties for anyone that a doesn’t submit, puts false data into or makes up a statement. As there are no penalties some statements can look like fancy marketing brochures. I believe that penalties for non-conformance would help drive positive change.

HOW DOES AUSTRALIA COMPARE TO THE REST OF THE WORLD? According to the Global Slavery Index, there were approximately 15,000 people living in “conditions of modern slavery” in Australia five years ago.

Globally there is an estimated 40 million people engaged in modern slavery. About two thirds of the global slave trade occurs in the Asia-Pacific.

Some of Australia’s biggest trading partners, including China, Malaysia, Indonesia and Thailand, and are host to some of the most egregious crimes.

Modern slavery is usually found in deeper tiers of suppliers.

HOW CAN BUSINESSES BE BETTER? Half of the battle is awareness and allowing people to know there is a problem. No one’s perfect – even the laptop I’m talking on has probably got components that are based on slavery.

Businesses will go a long way by simply addressing it. Internal training is important to pair with talking to suppliers to improve the visibility of a supply chain.

GOALS FOR INFORMED 365 GOING FORWARD If I’m glass half full, I would say the analogy is health and safety. For example 30 or 40 years ago, health and safety equipment like high-vis vests and boots were almost optional in certain industries and now they have become the norm.

I’m hoping that by building more awareness and providing better data to companies we turn ethical sourcing into the ethos of businesses so they look into the environmental and social aspects of their procurement process as well as the price and location.

If it becomes the standard way of doing business, people will spend money with other ethical businesses, and that in turn will start pushing the bad operators out of the market. ■

MHD ASCI

ASCI UPDATE

The latest information and updates from the Australasian Supply Chain Institute.

AUSTRALASIAN SUPPLY CHAIN INSTITUTE CONTINUED PROFESSIONAL DEVELOPMENT UPCOMING EVENTS AND PROGRAMS 2021 ASCI Annual General Meeting 6 November 2021 11.30am - 1.00pm Online ASCI members can register your virtual attendance to ASCI Annual General Meeting as a guest.

FIRST QUARTER OF 2022 APICS CPIM Part 1 (Basics of Supply Chain Management) Online Certification Review 1 February 2022 to 12 April 2022 7.00pm - 9.00pm (please check when registering time for AEST or AEDT i.e. daylight saving) 11 sessions | online This 11-week short course is the first module of the APICS Certified in Planning & Inventory Management which is a designation held by over 130,000 supply chain practitioners around the world.

APICS CSCP Online Certification Review 7 February 2022 to 6 June 2022 7.00pm - 9.30pm 16 sessions | online Eight modules delivered over 16 weeks. The APICS Certified Supply Chain Professional (CSCP) program arms you with end-to-end supply chain knowledge to help you and your business remain competitive in today’s economy. Boost your confidence in supply chain management and master the skills needed to bring new ideas to suppliers, plants, and distributors while

improving customer satisfaction.

With a CSCP Certification, you’ll gain valuable experience to effectively manage global supply chain efforts and implement essential concepts and strategies to improve day-to-day operations.

APICS CPIM Part 2 Online Certification Review 17 February 2022 to 2 June 2022 7.00pm - 9.30pm 16 sessions | online This 16-week course covering eight modules, is the second part of the APICS Certified in Planning and Inventory Management which is a designation.

It is a requirement that all students have completed CPIM Part 1 prior to commencing the course, please see ‘What’s on’ on our website to enrol in Part 1. The final exam is optional, however if passed with Part 1 certificate, allows participants to obtain their CPIM certificate.

APICS Certified in Logistics, Transport and Distribution (CLTD) - Online Certification Review 2 March 2022 to 25 May 2022 6.30pm - 9.30pm 13 sessions | online Certified in Logistics, Transportation and Distribution (CLTD) proves an in-depth understanding of how to streamline logistics, transportation and distribution including order management, distribution inventory management and warehouse management.

For more information, visit www.asci. org.au/events

ASCI CORPORATE MEMBERSHIP ASCI corporate membership is available for any group, organisation, industry body institution or business that wants to join ASCI and demonstrate its commitment to best practice and excellence, whilst ensuring its team’s proficiency in the supply chain industry.

ASCI membership provides access to professional pathways including complimentary practitioner registrations, global best practice knowledge, industry involvement and networks.

ASCI corporate members receive individual benefits for employees, including ASCI plus VIP prices for certifications, courses, complimentary tours and networking events and early bird releases.

For more information or to become a member visit ASCI website www.asci.org. au or contact enquiries@ asci.org.au.

Join ASCI and take the steps towards your professional career pathway now and for 2022. Membership starts at $275 with concessions available upon evidence of your employment situation or membership to another association. For more information on membership benefits please visit www.asci.org.au/join.

MHD NOVEMBER 2021 | 51

MHD SCLAA

Clearly understanding, specifying and recording a customer’s needs is essential for supply chain professionals.

NOTHING TO SEE HERE Mark Healing from the Supply Chain & Logistics Association of Australia explains why keeping certain interactions with customers to a minimum is an important skill for supply chain practitioners.

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s an operational Supply Chain practitioner, I often suggest that if we do our job right, we are invisible to our customer base. If we do not, they want to know every step of our process and why. The customer’s expectation is that their goods or services are available when and how they want them. Sometimes, that expectation is based on a specified scope and timings or alternatively, an implied understanding built on repetition, trust and relationships.

In other words, our customer’s

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level of expectation is intrinsic in our everyday dealings with them.

HOW DOES THE “INVISIBLE” HAPPEN? THROUGH: • Interaction with the customer.

• Working with them, understanding, clarifying, specifying and recording their needs.

• Understanding the individuals within their team technically, personally and emotionally.

• Mutually agreeing on an outcome.

The kicker here, is that it must be

workable for you as well.

I witnessed an example of this on a recent vacation in Far North Queensland.

My wife and I needed to be collected from Cairns Train Station for our Trip to Kuranda on the Sky rail. I watched the bus driver: • Arrive a few minutes prior to arranged time.

• Greet all passengers and tick them off his list.

• Call ahead to other passengers being collected and suggest they make their way to their collection point.

MHD SCLAA

• Advise passengers of all the next steps whilst driving to the next collection point.

• Collect three other groups along the way whilst battling traffic and fielding general questions.

• Communicate with Sky Rail Station as to how many passengers he had and his estimated time of arrival.

• Answer all questions and provide extra information on where to sit and what to expect so as passengers would get a better experience once on board the Sky Rail.

We arrived at the Sky Rail Station, the driver’s colleagues met and directed us to our respective cable cars via the ticket booths, and within minutes we were sitting in the cable car enjoying the view.

Expectations met and exceeded!

This is just a simple example of managing customer expectations as well as streamlining your internal process.

Most of the passengers were oblivious to the driver’s skill of seamlessly making it happen with the minimum of fuss – invisible!

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As an operational Supply Chain practitioner, I often suggest that if we do our job right, we are invisible to our customer base.

If we do not, they want to know every step of our process and why.

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I was impressed in the way the driver set some of these expectations with his imparting of information. The customer at times does not know what they may want or need. This is where the intrinsic knowledge you have of your customer base and your product can add value to their expectation. This will also reinforce the relationship with them and provide an avenue for return business with them.

So, I challenge you - what is your “invisible”? These may be hard to recall as you are doing them that well you don’t even know you are doing them! Now that you’ve done that, it is the “visible” that I would like you to concentrate on.

Be brave and reach out to your customer and establish where you are not meeting their expectation and only then, respectfully share where they aren’t meeting yours. Rest assured you will be working on the “visible” continuously, but I can assure you that if your customer is aware of your interest, they will reward you with the detail to enable these to become just another part of your “invisible”. ■ MHD NOVEMBER 2021 | 53

MHD FROM ALC

AUSTRALIA’S SUPPLY CHAIN PATH OUT OF LOCKDOWN The Australian Logistics Council writes the last 18 months has taught us that early planning measures and national consistency are critical to minimising the impact on the supply chain.

T

he last 18 months has taught us that early planning measures and national consistency are critical to minimising the impact on the supply chain. Industry needs a pragmatic and clear path forward from health officials to ensure that essential goods and services can continue to be delivered to increasingly expectant consumers.

The inconsistent application of the national freight protocol and the understandably cautious approach by state health officials has had a big impact on supply chain organisations and their employees. The industry has managed to keep the economy moving despite a myriad of permits, rules, testing and vaccination requirements.

As vaccination rates increase across the country and state premiers publicise their intentions of lifting lockdowns, we need health 54 | MHD NOVEMBER 2021

departments to engage with industry and finalise their planning. As we’ve seen from international examples, “living with the virus” means there will be inevitable outbreaks that spread through the community into supply chain networks.

While only some states are declaring plans to reopen, similar approaches will undoubtedly be adopted in all jurisdictions across Australia in the coming months. This means that industry needs leadership from the National Cabinet process to avoid inconsistency, confusion, and further disruptions as we begin the journey to Covid-normal.

The on-going pandemic has seen the unsung heroes of the supply chain resiliently adapting to ever-changing requirements to meet compliance demands, resulting in operational challenges, confusion, and frustration.

By prioritising consultation and collaboration with industry, coupled with 18 months of experience and a considered risk management plan, the National Cabinet can put in place a clear and practical path out of lockdown that includes the critical supply chain network across Australia.

The path could include creating a risk management profile in consultation with governments and industry, assisting to increase compliance whilst reducing administrative burden.

As community and government risk appetite for opening the economy grows, alongside increase in community vaccination rates, risk management approaches need to also adapt.

A national industry safety management system could include: • Ensuring freight and supply chain workers have completed appropriate

MHD FROM ALC

Early planning measures can help ease the damage of supply chain disruptions.

inductions and training to ensure workers understand and follow COVID safe practices • Promotion of vaccination to the workforce • Regular COVID safe communications • Use of government funded Rapid Antigen Testing where appropriate as a proactive measure to limit workplace transmission • Workforce ‘bubbles’ and regular deep cleaning of premises.

The path also needs to include a national approach to the management of close and casual contacts for fully vaccinated employees. Australia’s supply chain cannot weather large cohorts of the workforce being stood down in isolation as a result of being a close or casual contact.

ALC suggests the path for vaccinated employees exposed to COVID positive contacts should be to isolate until a

“

The on-going pandemic has seen the unsung heroes of the supply chain resiliently adapting to everchanging requirements to meet compliance demands, resulting in operational challenges, confusion, and frustration.

”

negative PCR test result is returned.

However, they should not have to isolate for 14 days as per the current requirement in most jurisdictions.

Government funded Rapid Antigen

Testing could be administered as a replacement for isolating at the start of each shift, as a proactive measure.

Finally, as more of the economy opens up, the requirement for permits for interstate and intrastate freight movements will need to be reconsidered. If a business has an approved COVID safe plan and adequate staff safety measures in place, this should remove this administrative requirement.

National planning and alignment are needed now to allow supply chain businesses to plan, adjust, and optimise their operations to continue to meet community needs.

Our path out of lockdown hinges on achieving a national and harmonised approach. Getting the path right will be a little bumpy but ultimately manageable. However, getting it wrong could mean a rocky road to freedom. ■ MHD NOVEMBER 2021 | 55

7 APRIL 2022

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MHD PRODUCT SHOWCASE

LARGEST EVER COMBILIFT C-SERIES FORKLIFT

THE EFG M SERIES

Combilift’s giant 30t capacity C30,000 truck is now in operation at modular data centre manufacturer BladeRoom’s factory in Gloucestershire, where it is ensuring the efficient handling of components for its server rooms, as well as the finished products, which are comparable in size to shipping containers and can weigh up to 19 tonnes.

The EFG M Series Electric Counterbalanced Forklift by Jungheinrich is German designed for maximum performance at minimum energy consumption. Available in a 1.6 to 3-tonne model, the M Series offers best in class manoeuvrability allowing for fast operations in tight spaces.

The C30,000 measures around 5m x 5m, has a wheel base of 3725mm and is fitted with a John Deere Diesel 127 kW (170HP) engine, and also incorporates customised features which enable the safe and stable lifting and transportation of BladeRoom’s very oversized loads. These include four cameras (one of which is a reversing camera), with two camera monitors in the cab, red danger zone lights and a tilt indicator in the cab display.

Starting from $30,990 the M Series features a container mast with side shift, working lights, ergonomic comfort seat and easy side battery access. For businesses who purchase the M series, Jungheinrich is offering a bonus two-year maintenance plan for a limited time.

For more information, visit www.jungheinrich.com.au

For more information, visit www.combilift.com

FLEXCO’S SEGMENTED TRANSFER PLATES

PPX-1165 PLASTIC PALLETS

Conveyor transfer gaps are one of the biggest causes of conveyor downtime in the parcel and logistics industries. Flexco’s Segmented Transfer Plates are an engineered solution designed to help prevent product loss at the transfer point, preventing potential damage to the product as well as the belt and conveyor structure.

Ozkor’s PPX-1165 is a heavy-duty plastic pallet designed with patented technology to enhance its impact-resistant capabilities under extreme operational conditions and will safely handle 1350kg of product in drive-in racking, which increases racking safety and unit load efficiencies.

With this solution, each plastic segment is positioned directly on the belt, which prevents product ingestion and reduces nip points and pinch hazards. The product provides a smooth transition from one belt to another, from belt to chute, or from belt to structure – and increases operator safety.

The specialised grade of virgin polypropylene copolymer materials chosen will operate in extreme temperatures ranging from -30°C to as high as 50°C in warehouse environments.

For more information, visit www.plasticpallet.com.au

For more information, visit www.flexco.com.au

MHD NOVEMBER 2021 | 57

MHD PEOPLE ON THE MOVE

BROUGHT TO YOU BY

PEOPLE ON THE MOVE A monthly wrap up of the latest appointments in the supply chain, materials handling and logistics industry.

TMX APPOINTS EXECUTIVE DIRECTOR OF PEOPLE

JLL INDUSTRIAL APPOINTS NEW NATIONAL LEADER

TMX has appointed Julie-Anne VandenHoff to Executive Director of People. She comes with over 20 years of experience in human resources, talent management and advisory.

JLL has promoted Peter Blade to the role of National Head of JLL Logistics & Industrial Agency business. Peter is currently JLL’s NSW Head of Industrial and Head of JLL’s

Julie-Anne will lead the workforce and strategic people growth agenda to enable the business to continue providing innovative and industry-leading outcomes for clients.

Parramatta Office. Instrumental in the growth of JLL’s Industrial division, Peter has successfully negotiated industrial sales and leasing transactions on behalf of institutional and private landowners.

BASTIAN CONSULTING APPOINTS NEW PARTNER

JLL APPOINTS NEW HAD FOR INDUSTRIAL OCCUPIER SERVICES

Woolworths Group has appointed Annette Karantoni as its Chief Supply Chain Officer and Managing Director Primary Connect. Primary Connect is

Stephanie Martinez has recently been recruited by Bastian Consulting as Partner.

Stephanie brings a combination of recruitment, research, marketing, finance, and operational experience in support of

JLL’s Matt Lee has been appointed to a new role as National Head of Industrial Occupier Services, where he will manage

the supply chain arm of Woolworths Group offering end-to-end logistics services to its own retail businesses and a growing number of external partners.

client project delivery and business growth.

She has more than nine years experience in supply chain recruitment and is already

JLL’s supply chain and logistics business, occupier services and strengthen data centres. Matt has a detailed understanding of the data centre market and an extensive track record in this space and will take the

bringing value to clients and candidates.

lead on data centres on a national level.

WOOLWORTHS GROUP ANNOUNCES MAJOR APPOINTMENT

Do you have career news to share? Email Edward Cranswick at Edward.Cranswick@primecreative.com.au to be featured.

58 | MHD NOVEMBER 2021

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