MHD Supply Chain Solutions December 2023 by Prime Creative Media

MHD SUPPLY CHAIN SOLUTIONS DECEMBER 2023

DECEMBER 2023

COVER STORY

AUTOMATING FOR OPTIMUM RESULTS Dematic transforms machinery supplier's spare parts warehouse

BUSINESS PARK LAUNCHING IN SYDNEY CBRE and Macquarie agents managing Stage One of Nepean launch

ENLARGING GLOBAL FOOTPRINT Argon & Co's ANZ team grows more in 2023 as it expands worldwide operations

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MHD EDITOR’S LETTER

MHD

Supply Chain Solutions CONTACT MHD Supply Chain Solutions is published by Prime Creative Media 379 Docklands Drive, Docklands VIC 3008 Telephone: (+61) 03 9690 8766 Website: www.primecreative.com.au

THE TEAM CEO: John Murphy Chief Operating Officer: Christine Clancy Managing Editor: Syed Shah Editor: Edward Cranswick Journalist: Joseph Misuraca Business Development Manager: William Jenkin Design Production Manager: Michelle Weston Art Director: Blake Storey Graphic Designers: Louis Romero, Kerry Pert Client Success Manager: Janine Clements

FOR ADVERTISING OPTIONS Contact: William Jenkin william.jenkin@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. COPYRIGHT MHD magazine is owned by Prime Creative Media. All material in MHD is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in MHD are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

‘TIS THE SEASON

s the year draws to a close and we welcome December, the supply chain and logistics sector continues to surge ahead with advancements in automation, strategic development, and global collaboration. In this final 2023 edition of MHD, we have a variety of stories that embody the innovative spirit and dynamic growth of the industry. Our Cover Story is a deep dive into the world of Dematic and its AutoStore system, implemented at WesTrac’s automated warehouse in New South Wales. With 15,350 segmented bins, 24 robots, and a design that maximises space and efficiency, this modern marvel of automation mirrors the complex workings of a Rubik’s cube, revolutionising the goods-to-person picking process. Natalia from WesTrac and Seth from Dematic elaborate on how this intelligent system is not just enhancing warehouse operations but also setting a new benchmark for the industry. Shifting gears to infrastructure, we spotlight the eagerly anticipated Nepean Business Park in Sydney’s Penrith. Managed by CBRE and Macquarie Commercial, this multi-billion-dollar development is poised to satiate the soaring demand for industrial and logistics space. With the strategic release of subdivided allotments, the project promises to stabilise rental rates and offer a lucrative return on investment. Agents John Micallef, Matthew Alessi, and Luke Belotti share insights into the park’s phased development strategy and the overwhelming market response it has received. Moreover, we turn our attention to Argon & Co’s expanding global footprint. Stephan Mang, an ANZ Partner at Argon & Co, discusses the company’s achievements throughout 2023, including mergers and acquisitions that have bolstered its international presence. Its commitment to exchanging cutting-edge ideas and providing round-theclock service underscores the importance of global synergy in today’s interconnected world. These are just some of the highlights from the December edition of MHD, but be sure to check out the other exceptional stories in this edition, which touch on the hot topics – including innovation, sustainability, and resilience – that are currently shaping the logistics landscape. As we prepare to step into a new year, we at MHD are excited to continue bringing you the stories that drive our industry forward. Join us in celebrating the milestones we’ve reached and the journeys we’re embarking on, as the pulse of the supply chain beats stronger than ever. Happy reading and happy holidays. See you in 2024.

Edward Cranswick Editor edward.cranswick@primecreative.com.au MHD DECEMBER 2023 | 3

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ISSUE #9 VOLUME 55

THIS ISSUE COVER STORY

24 Dematic powers WesTrac automation

REGULAR COLUMNS 28 Property Focus on multi-storey warehousing 30 Logical Outlook on container challenges

SUPPLY CHAIN

47 Körber on financing supply chain investments

COVER STORY

52 Argon & Co expands operations 60 Geotab keeping tabs on trucks 62 Shiperoo revolutionising returns management

MATERIALS HANDLING 55 T MHA boosts Sadleirs’ operations

DECEMBER 2023

INDUSTRIAL PROPERTY

COVER STORY

AUTOMATING FOR OPTIMUM RESULTS Dematic transforms machinery supplier's spare parts warehouse

58 CBRE on Nepean Business Park

WAREHOUSING 42 Kmart automates with Tompkins’ tSort

BUSINESS PARK LAUNCHING IN SYDNEY CBRE and Macquarie agents managing Stage One of Nepean launch

ENLARGING GLOBAL FOOTPRINT Argon & Co' s ANZ team grows more in 2023 as it expands worldwide operations

ASSOCIATIONS, EVENTS, AND REGULARS

ON THE COVER

44 Sustainability on show at MEGATRANS2024

WesTrac has automated its Tomago

64 SCLAA on the 2023 ASCLA

spare parts warehouse in NSW with the Dematic AutoStore system.

67 ASCI offering courses and workshops

69 People on the Move 70 Product Showcase MHD DECEMBER 2023 | 5

MHD INDUSTRY NEWS & OPINION

DHL EXPANDS AUTOSTORE PARTNERSHIP

HL Supply Chain and robotic technology company AutoStore™ are expanding their partnership in a move set to further automated warehouse operations on a global scale. DHL Supply Chain, already involved in nine operational AutoStore warehouse projects with four more This expanded partnership between DHL Supply Chain and AutoStore promises to redefine the future of warehousing.

in the planning stage, is poised to become one of AutoStore’s largest 3PL clients, reinforcing their commitment to digitalisation and automation. The nine existing S*stems effectively operate 800,000 Bins, with the forthcoming four S*stems elevating the total number of Bins to a remarkable 1.2 million. In the future, DHL also intends to construct five further facilities in addition to those already in operation or planning. “We are pleased to expand our existing relationship with AutoStore as we continue to implement our digitalisation and automation strategy in a growing number of warehouses, allowing us to better and faster serve our customers,” says Markus Voss, COO and CIO at DHL Supply Chain. “Through a standardised approach and dedicated stock availability we will be able to significantly drive down implementation times. Additionally,

the AutoStore network of partners is invaluable in supporting our growth strategy across multiple geographies.” “Our longstanding collaboration with DHL Supply Chain has showcased the strength, reliability, and efficiency of AutoStore technology,” says Mats Hovland Vikse, CEO of AutoStore. “We are thrilled to further expand this valued partnership, supporting DHL Supply Chain’s global deployment of automated warehouse solutions.” This innovative automated storage and retrieval s*stem (AS/ RS) technology has been developed to efficiently manage and optimise inventory using vastly reduced space within warehouses. Its highly modular and scalable design makes it a preferred solution for e-commerce and businesses handling smaller products such as fashion and tech items.

DP WORLD AUSTRALIA ISSUES UPDATE ON CYBERSECURITY INCIDENT

ollowing the cybersecurity incident identified on Friday November 10, DP World Australia in collaboration with cybersecurity experts, has worked tirelessly, making significant progress in re-establishing landside freight operations at its ports. It says its top priority is the secure and safe restoration of its terminal operations. To facilitate the flow of some freight, the company has activated its robust business continuity plan and is collaborating with industry partners, including other ports and terminal operators. Additionally, it is working closely with government and private sector stakeholders to identify and retrieve sensitive inbound freight. Currently, DP World Australia teams 6 | MHD DECEMBER 2023

are testing key systems crucial for the resumption of normal operations and regular freight movement. A further update will be provided once this testing phase is complete. A key line of inquiry in this ongoing investigation is the nature of data access and data theft. DP World Australia says it appreciates this development may cause concern for some stakeholders. It adds that it is working hard to assess whether any personal information has been impacted and has taken proactive steps to engage the Office of the Australian Information Commissioner. The resumption of DP World Australia’s terminal operations does not signify the conclusion of the company’s efforts. The company is committed

to continuing its investigation and remediation work to ensure the security and integrity of its customers, partners, employees, operations, and data. It notes that it remains resolute in its commitment to restoring normal operations as quickly and safely as possible and is dedicated to ensuring the continuous flow of goods and services that support Australia’s economy.

The significant cyberattack has hampered activities at multiple major ports in Australia, leading to disruptions and congestion.

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

Scan for the video! Dematic.com 02 9486 5555 info.anz@dematic.com

MHD INDUSTRY NEWS & OPINION

COATES FOUNDATION CELEBRATES BIRTHDAY

he Coates Foundation celebrated its second birthday in November, having boosted its contributions to its national charity partners and community organisations in 2023. Elise Manns, Executive General Manager for People & Safety at Coates, said: “It’s been an incredible two years since we launched the foundation, with nearly $1 million contributed over that time to worthy causes across the country and in the communities in which we live and work. But it’s more than just providing muchneeded financial support to these communities. “It’s been amazing to see how readily our team members across the

country are donating their time as volunteers – we’re anticipating we’ll reach 600 hours volunteering across 2023, up from 516 hours in 2022. “It goes to show just how much our people care about these causes and their communities, with all willing to help however and whenever they can.” In addition to Coates’ existing partnership with the Clontarf Foundation, the Foundation’s national charity partners are the Humpty Dumpty Foundation, TIACS, and Mission Australia. Nationally, the Foundation supports R U OK?, while at a regional Business Unit (BU) level, it supports the Humpty Dumpty Foundation (East BU), Seven Telethon

In 2023, the Foundation supported the Humpty Dumpty Foundation’s Balmoral Burn, with Coates’ team members and their families taking part in a variety of different race categories over the 420 metre stretch up one of Sydney’s steepest hills. (West BU), TradeMutt (North BU) and Foodbank (South BU).

AMAZON OPENS JANDAKOT FC

mazon Australia has officially opened its $70 million fulfilment centre (FC) in Jandakot, Perth with the site expanding its storage capacity in Western Australia (WA) by 500 per cent. The facility will grow production selection and improve delivery

The new Amazon site is home to more than 225 jobs.

8 | MHD DECEMBER 2023

outcomes for WA customers by increasing the proportion of items that can be shipped directly from Perth to local residents. “We’re thrilled to open our new purpose-built fulfilment centre in Perth, investing further in the state to grow our footprint and provide

quality job opportunities,” says Amazon Australia Country Manager Janet Menzies. “Since we launched amazon.com. au, we’ve been committed to offering customers great value, wide selection and fast delivery, and this new fulfilment centre helps us deliver even more this promise for customers in Western Australia.” The state-of-the-art site located in the Jandakot Airport Commercial Precinct is more than double the size of the company’s previous Perth Airport FC, which it has replaced, and offers a diverse range of job opportunities in an industry-leading workplace. The site is home to more than 225 jobs, including 125 roles filled by existing team members who transferred from the previous site and more than 100 new local jobs for the local area. “Many Perth Prime members have already experienced next-day delivery on Amazon order, and our investment in this site will increase the selection of items that can be shipped directly to local customers more quickly,” adds Janet.

MHD INDUSTRY NEWS & OPINION

KÖRBER SHOWCASES VR AT MELB UNI

örber showcased its (VR) experience technology solution at the University of Melbourne’s 2023 Melbourne Supply Chain Conference, where experts analysed the latest trends impacting the Australian supply chain. Talks and demonstrations for the event centred around how the latest technologies intersect with supply chain sustainability and resilience, focusing on how technological advancements – such as robotics and artificial intelligence – are altering the functionality of supply chains and logistics now and in the future. “Körber was thrilled to have the opportunity to connect with students across various faculties, as well as industry experts and likeminded business to showcase the current trends, opportunities, and challenges in today’s supply chain,” says Nikki Jones, Körber Director of

Marketing APAC. “We were glad to see the virtual reality demonstration was wellreceived and gave attendants a glimpse into how our automated picking systems are helping businesses reach new heights in the e-commerce area.” More than 100 attendants were given the chance to experience firsthand virtual warehouse picking with Körber’s automation solutions. The VR helps to visualise how robots and automation can save time and space on the warehouse floor, improving picking capacity for businesses looking to support higher volumes. According to one of the event organisers, Dr George Panas, Department of Management and Marketing University of Melbourne – who has 25 years of management experience in industry and consulting – the event displayed how industry

collaboration is crucial to support the future of Australian supply chains. “Collaboration between universities and industry is vital and mutually beneficial,” he adds. “In 2023, our collaboration efforts have centred around bringing real life, practical supply chain experiences to students, via conferences, sites visits, guest speakers, etc. There is further potential to collaborate on many fronts in the future, including student projects, internships and joint research.” Körber’s VR technology in action at the 2023 Melbourne Supply Chain Conference.

MAJOR DISTRIBUTION FACILITY LEASING IN SA’S SOUTHEAST

eedwell Property agents Steve Smith and Henry Treloar are managing the lease for a 65,000 sqm DC, which is home to advanced technology and innovation companies, Vailo and Vircura. The South-Eastern Innovation & Distribution Centre in Monarto South is part of a site that is a total of 365,000 sqm and is 50km southeast of Adelaide. “Areas from 3000 sqm and up to 45,000 sqm of high-quality office warehouse can be made available and will be attractive to technology and distribution companies seeking to take advantage of the site’s excellent location, and access to staff from

the Adelaide Hills and Murray Bridge region,” says Steve Smith, Partner at Leedwell Property. Adjoining the South-Eastern Freeway, direct access is provided to Adelaide (50km) and Melbourne (600km) while the Mallee Highway interchange is close by and provides easy access to NSW and further north. This road network centralises the property and provides organisations with convenient links to all corners of Australia. “In addition to the excellent

“The site was originally designed and built for Big W’s south-eastern distribution centre,” notes Steve. “It has all the bells and whistles of a modern facility and will accommodate numerous future users. Importantly, there is a significant advanced racking system that is available for use by incoming tenants, however, this can be removed – subject to consents – if not required.”

improvements available, various heavy duty hardstand areas can be made available for groups looking to store externally,” adds Steve.

For more details about the property and if you have any queries, please contact Leedwell Property’s Steve Smith (0410 532 022) or Henry Treloar (0412 404 426). MHD DECEMBER 2023 | 9

MHD INDUSTRY NEWS & OPINION

AUSTRALIA POST ADDS NEW FREIGHTER

ustralia Post has added a new freighter to its fleet, providing critical capacity and flexibility to support growing e-commerce demands during the busy peak Christmas period. Operated in partnership with Qantas Freight, the newly converted A330200P2F aircraft doubles the volume of Australia Post’s largest current freighter. Providing 130 tonnes of capacity each night, initially the new freighter will operate between the east coast and Perth, carrying StarTrack and Express Post parcels. During December 2022, Australia Post carried more than 9 million kilograms via its dedicated freighters and within the aircraft belly hold of commercial flights.

Australia Post Chief Executive Officer and Managing Director Paul Graham emphasises the significance of the new freighter and the role it will play in Australia Post’s delivery network. “Our new A330 freighter delivers increased flexibility within our freighter fleet, creating a sustainable, long-term solution to meet growing customer demand driven by e-commerce,” he explains. “This new freighter also builds on our longstanding partnership with Qantas Freight, which operates our existing freighter fleet. “The new A330 provides a direct boost to our freighter capacity during our busiest time of year, ensuring we are well placed to manage the increased volume expected across the cyber sales period and Christmas.” This investment marks a major milestone in Australia Post’s commitment to enhancing its delivery network and will increase overall peak

capacity by 29 per cent. Additionally, the new freighter will support Australia Post meeting its emissions reductions targets as it continues to modernise its operations. The new freighter will reduce Australia Post’s aircraft emissions by replacing a B737F which will be retired from the fleet. Producing 42 per cent less carbon emissions per kilogram of cargo than the B737F, the extensive capacity of the A330 requires less fuel for each parcel carried. “Notably, the A330 allows us to further simplify and streamline our services while delivering on our commitment to a more sustainable future,” adds Paul. “The additional capacity of this aircraft allows us to reduce the number of aircraft we have in the air by operating on our largest volume sectors, in turn reducing our carbon footprint and supporting fast and reliable deliveries for our customers.”

TOLL BECOMES MAJORITY SHAREHOLDER IN JOINT VENTURE

oll Group has announced it has entered into a transaction agreement where it will become majority shareholder in its joint venture in Dubai, CWT-SML Logistics LLC (CWT-SML). Under the terms of the agreement Toll will acquire a further 35 per cent interest from Albwardy Investment LLC, thereby increasing its shareholding from 20 per cent to 55 per cent. CWT will continue as a shareholder with a 45 per cent shareholding. “A key element of our strategy is to expand our core businesses in highgrowth markets,” says Alan Beacham, Managing Director.

10 | MHD DECEMBER 2023

“Dubai is a rapidly growing logistics hub that serves as a gateway to Europe, the Middle East, Africa, and South Asia. “Our investment in CWT-SML underlines our commitment to this market and strengthens our operations across the region by offering integrated solutions for our customers.” CWT-SML operates five DCs in Dubai, providing warehousing, logistics, and transport services to long-term, blue-chip customers across various sectors. The company employs almost 170 workers. Toll’s acquisition of the additional shares is subject to completion taking place which is expected to be end of November 2023.

Upon completion, Toll Group as the majority shareholder will oversee the strategic direction of the joint venture while the operations will be managed as part of Toll’s Dubai operations.

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MHD INDUSTRY NEWS & OPINION

PROMINENT SOUTHWEST SITE LEASING

olliers says a prominent industrial site in Sydney’s South West has come up for lease, offering 3979 sqm through well-

renowned vendor LOGOS. With a total yard area of 2970 sqm, Semi and Rigid access and internal clearance, the property at Building 4,

With an ESFR Sprinkler System throughout, energy and water smart metering and 33 on-site car spaces, the property comes with a long-term lease available with favourable incentives.

34 Yarrunga Street in Prestons will be one of the only buildings within Prestons that will be ready to occupy in early 2024. The property is being marketed by the Colliers team of Angus Urquhart, Michael Crombie, Trent Gallagher and Adrian Balderston. “The site has great exposure and will provide a minimum 5-star green star rating, Semi and Rigid access, multiple on-grade roller doors and an internal clearance of 13.7 metres, while also benefitting from the 0.2 per cent vacancy rate in Sydney,” says Trent. “The South West market has minimal available stock to lease, which means tenants are being starved of A grade opportunities,” adds Michael. Angus says this facility will be at the forefront of availability within the area, and will provide tenants with unparalleled access to major road networks and connectivity to the rest of Sydney.

KÖRBER AUTOMATES NEW OFFICEWORKS CFC

örber has automated Officeworks’ new customer fulfilment centre (CFC) which opened in Perth as the Australian retail company has made a major upgrade to its supply chain network. The office supply retailer is using state-of-the-art technology in the form of a warehouse management s*stem (WMS) integrated with 91 autonomous solar-powered autonomous mobile robots (AMRs). The centre has the flexibility to scale up to 150 robots with Körber’s Robotas-a-service (RaaS) enabling the CFC to meet demand during peak periods. “Our business, our team and our customers are already enjoying the benefits from our recent supply chain investments,” says Officeworks

12 | MHD DECEMBER 2023

Managing Director Sarah Hunter. “The ongoing modernisation and innovation in our supply chain operations allows us to deliver even more value to our customers and the fast, reliable, and trustworthy service and choice they have come to expect from Officeworks.” The new facility will allow for a oneto-one team member to autonomous mobile robot ratio, which will fulfil more than 10,000 product lines a day. Additionally, with the training opportunities provided, the pairing is set to improve team member health, well-being, and safety measures, and to eliminate an estimated 10-12 km of walking per shift. The 15,000 sqm CFC site – which is the equivalent size of 12 Olympic

swimming pools – will continue to transform and modernise Officeworks’ supply chain. Operations will increase the speed of stock delivery to customers and stores, as well as improving availability and inventory management of tens of thousands of products. “We are delighted to once again be working with Officeworks on its supply chain transformation journey,” says Körber Director ANZ Anthony Beavis. “After the successful rollout of our flexible and agile tech solutions at the leading retailer’s Victorian CFC in 2021, we are proud to continue our partnership and support Officeworks supply chain upgrade at its purposebuilt CFC in Perth, Western Australia.”

MHD INDUSTRY NEWS & OPINION

ASCLA CELEBRATED IN SYDNEY

n Friday November 10 the Supply Chain & Logistics Association of Australia (SCLAA) held its annual Australian Supply Chain & Logistics Awards (ASCLA) at The Fullerton in Sydney. A total of 470 guests attended the event, which started with a Welcome to Country by Aunty Donna Ingram. MC for the night was entertainer and comedian, Sam McCool while the guest speaker was Australia Post CEO Paul Graham, and Cathy Anne Jones was the ASCLA Events Committee Chair NSW State Director. List of the ASCLA 2023 Winners: • Automation, Robotics or Emerging Technology – AutoStore • Big Data, IT & Business Intelligence – Bestrane • Environmental Excellence – CEVA Logistics • Future Leader – Jess Sargent • Industry Excellence – Yiau

Hwei Chan • International Supply Chain – Bondi Sands • Start-Up – AI • Supply Chain Management – Koala Living • Training, Education & Development – ITLS University of Sydney Business School • Judges’ Choice – Healthy Heads Trucks and Sheds During 2023, the SCLAA held 56 events nationally, attended by more than 2600 registrants. It says this was an increase of 30 per cent on the previous year. The SCLAA has new initiatives planned for 2024, including an expanded mentoring program, specialised events for different industry sectors and professional development programs for career progression. Additionally, it notes that is forging relationships that are addressing

industry’s most urgent issues. Its partnership with the Institute of Transport & Logistics Studies (ITLS) at the University of Sydney, and jointly created and delivered multicredential courses for senior and executive managers during 2023 have assisted with understanding the rapid technological changes that industry can leverage. It says it will continue to work closely with TAFE NSW in highlighting skills shortages in the industry and ringing industry and TAFE together.

In her opening speech Sue Tomic, Board Chair of SCLAA, touched on the importance of connection, collaboration, innovation, human capital, and disruption being the new normal.

NEGOTIATING MAKE GOOD IN A LANDLORD ENVIRONMENT

MX Transform’s Michael Simpson tells MHD about what tenants can do to cope with the challenges posed by tight vacancy rates, skyrocketing rental costs, and complicated landlord dealings. The industrial real estate market in Australia is experiencing high demand, leaving tenants in complex negotiations with landlords. To succeed in this competitive landscape, tenants must be well-informed, strategic, and aware of their lease obligations. An occupier’s understanding of their lease obligations is more than just due diligence; it’s their foremost safeguard against unexpected costs. There are several challenges that can expose tenants to financial and operational disruptions. 1. T ime Pressures for Completion: Tenants often find themselves under pressure to complete required modifications and improvements to the leased space within a limited

14 | MHD DECEMBER 2023

timeframe. Meeting these deadlines can be a significant challenge, impacting their ability to commence operations on schedule. Time pressures have especially increased with the labour shortage in Australia, seeing a decline continue into the next financial year to around $210 billion across the construction industry. 2. H oldover Risk: Many leases contain holdover clauses that allow landlords to charge additional rent if tenants continue to occupy the premises beyond the agreed-upon lease term. These clauses can lead to unexpected financial burdens for tenants. 3. O perational Strain: The demands of negotiating lease terms and fulfilling make good obligations can place significant strain on a tenant’s core business operations, diverting resources and focus away from their primary objectives. To navigate these challenges

successfully, tenants are encouraged to: 1. U nderstand their lease obligations, allowing for realistic timelines, accurate budgeting, and stronger negotiation power. 2. P artner with a tenant representative, who can provide market insights, negotiate on their behalf, save time and money, and offer legal guidance and support. 3. C onsider the landlord’s needs and the value of fit-out. In a market where there is little downtime between leases, tenants could ensure the condition of the premises is in such a state that an early surrender could be negotiated to permit an incoming tenant early access to the premises, incentivising the landlord to release the tenant earlier. With comprehensive inspections, an understanding of their lease obligations, and knowledge of the value of their fit out, tenants can minimize financial and operational exposure.

S P 0 s l

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Industrial Real Estate

Steve Smith Partner 0410 532 022 steve.smith@ leedwell.com.au

Andrew Gerlach National Director 0410 312 116 andrew.gerlach@ leedwell.com.au

Industrial Real Estate As market leaders, our industrial property team offers everything from pre-commitment leasing to development management, based on a commitment to delivering strong outcomes. → Leasing & Sales → Investment Sales → Development Expertise

Henry Treloar Director Industrial 0412 404 426 henry.treloar@ leedwell.com.au

Jamie Forwood Senior Executive 0450 959 032 jamie.forwood@ leedwell.com.au

Experience our approach to property. leedwell.com.au

Will Goode Senior Executive 0430 407 793 will.goode@ leedwell.com.au

Renee Ferraro Senior Executive 0490 865 820 renee.ferraro@ leedwell.com.au

Anthony De Palma Senior Executive 0423 568 771 anthony.depalma@ leedwell.com.au

MHD INDUSTRY NEWS & OPINION

TOLL GROUP PARTNERS WITH EDUCATION INSTITUTES

ading institutions in Singapore, Republic Polytechnic and the Singapore University of Technology and Design (SUTD), to advance new automation and digital solutions for warehouses. The event took place as part of Asia’s largest innovation festival, the Singapore Week of Innovation and Technology. Through the partnership, industry experts, student researchers, and faculty members will collaborate with Toll innovation experts to harness new technologies such as artificial intelligence and the Internet of Things, to drive enhancements in automation and digitalisation in logistics. “Toll is pleased to collaborate with Singapore’s leading education institutions to advance warehouse automation technologies,” says Alan Beacham, Toll Managing Director.

“We’re driven to explore digitisation so our customers can benefit from efficient and reliable supply chains. Partnerships are a critical step towards driving the digitisation of the logistics industry.” The partnership with SUTD will further develop supply chain optimisation and simulation technology, such as digital twins, which is key to achieving and sustaining peak efficiency amid market fluctuations. “The partnership with Toll Group leverages RP’s multidisciplinary capabilities across its Centre of Innovation for Supply Chain Management as well as our engineering and infocomm schools in developing cutting-edge technologies to enhance productivity and safety,” says Boo Chong-Han, Republic Polytechnic Deputy Principal (Academic &

Organisational Development). “Besides improving operational excellence, the collaboration also allows our students to hone their skills in real-world scenarios, further bolstering Singapore’s position as Asia’s top logistics hub.” The partnership will also give students the opportunity to engage in real-life operations and gain practical skills and experience. “We are happy to partner with Toll Group to develop efficient, robust and resilient systems through information exchange, modelling and simulation of these complex systems,” says Professor Chong Tow Chong, SUTD President. “With the digital twin technology, users will gain greater foresight to various pre-planned situations and trail solutions for greater efficiency and productivity without interrupting operations.”

VTA HONOURS INDUSTRY GREAT

he Victorian Transport Association (VTA) has honoured one of the industry’s greatest contributors with one of its highest accolades at the VTA President’s Dinner at Melbourne’s Atheneum Club. Former Kalari managing director and long-time VTA Executive Council member Peter O’Shannessy, was presented with the W.F.D Chalmers Award, in recognition of his many years of outstanding service. CMV Truck & Bus and Volvo Group Australia sponsored the dinner. “The W.F.D Chalmers Award was instituted by the VTA in memory of Daryl Chalmers, who was a member of the Executive Council for over 40 years,” says VTA CEO Peter Anderson. “The Award is presented annually to recognise individuals that have supported and worked with the

16 | MHD DECEMBER 2023

Association over many years, with dedication, loyalty, and commitment to its existence and longevity. “We were thrilled to have Daryl’s son Gary Chalmers at the dinner to make the presentation to Peter, along with numerous past winners of the award.” Peter Anderson says Peter O’Shannessy has served on the VTA Executive Committee since 2015 and has provided much-valued counsel on a range of issues. “As a member of the Finance Committee for many years, Peter’s advice during some turbulent economic times has been greatly appreciated. Away from the Association, Peter has led Kalari Group as managing director, and with Swire’s Group’s recent divestment of those businesses to Qube, Peter has moved into other roles within Swire –

Accolades were presented at the VTA President’s Dinner at Melbourne’s Atheneum Club. and expects to spend more time with his second love in life being his farm and cattle.” VTA President Mike Lean echoed Peter Anderson’s remarks and extended his thanks and appreciation to Peter for his decades of service to the VTA and broader industry. Lean also used the occasion to reflect on some of the issues and achievements of the Association over the past year.

MHD INDUSTRY NEWS & OPINION

WHAT AUSTRALIA’S NEW PACKAGING REGULATIONS MEAN FOR YOU

MX Transform’s Sophie Marshall and David Chalmers explain to MHD how the federal government’s new packaging regulations will require businesses to develop sustainable packaging for items by 2025. By the end of 2025, a new packaging regulatory scheme will be established in Australia, focusing on design standards and targets so packaging is recovered, reused, recycled, and reprocessed safely in line with circular economy principles. Tanya Plibersek, Minister for Environment and Water, says, “Seventy per cent of the environmental impacts of an item are locked in at the design stage,” so focusing on design elements can improve recovery – which is needed

given only 12 per cent of plastics were recycled in Australia during 2020-21. Proposed legislation around waste minimisation with packaging in the EU is expected to pass by Q1 2024, with the legislation applying to exporters to the EU. The focus is on consumer packaging, detailing targets around packaging minimisation, reuse, recycling, labelling, and banned substances. TMX Transform’s Sustainability Lead, Sophie Marshall, says, “regulatory change is fast approaching in Australia and abroad. It is so important businesses address their packaging design now, to prepare for this industry shift, which will greatly enhance resource

preservation and recovery.” During 2020-21 in Australia, 6.74 million tonnes of packaging was placed on market (POM), with 44 per cent of this packaging being disposed to landfill. EU packaging regulations will impact Australian businesses exporting to the EU and will have a significant impact on Australia’s waste minimisation efforts. Companies supplying materials in bulk into the EU will also need to comply with reuse regulations, for items including pallets, boxes (excluding cardboard), trays, plastic crates, intermediate bulk containers, drums, and canisters, with these targets set to apply from 2030 and reach 90 per cent by 2040.

HAI ROBOTICS APPOINTS NEW ANZ GM

ai Robotics has appointed Will Fan as its new General Manager, ANZ, effective immediately who will be responsible for managing and directing all aspects of its operations in the region. It says he will achieve this by bringing more flexible and reliable automation solutions with high standard delivery and facilitating market expansion and new business opportunities in Australasia. “We officially entered the ANZ market two years ago and have witnessed tremendous growth throughout,” says Will. “I am excited to take a greater role in propelling Hai’s ANZ business, while also leading our talented and dedicated team. Now more than ever, our customers are facing heightened 18 | MHD DECEMBER 2023

challenges pertaining to costs and lack of availability of real estate. “With supply chain and logistics playing a crucial role in the ANZ economy, I look forward to introducing them to Hai’s innovative solutions and building our presence as the key player in the local market.” Prior to this appointment, Will served as Regional Sales Director for Hai Robotics ANZ, and Sales Director for three years for the Singapore market. Among his many successes, Will has demonstrated outstanding leadership in spearheading numerous projects both locally and internationally, as well as played a critical role in serving clients varying across a range of sectors – including

Will Fan brings with him a wealth of knowledge of the local logistics market, as well as a proven track record for sales and business development within the B2B industry. electronics, retail, 3PL, and e-commerce. In his new role, Will will also facilitate crosscollaboration between the Australian subsidiary and Hai’s global headquarters to ensure alignment on regional and global company objectives.

MHD INDUSTRY NEWS & OPINION

HOW SUSTAINABLE ARE LITHIUM-ION FORKLIFTS?

örber showcased its (VR) experience technology solution at the University of Melbourne’s 2023 Melbourne Supply Chain Conference, where experts analysed the latest trends impacting the Australian supply chain. Lithium-ion forklifts are not just revolutionising supply chains – they’re also leading the charge in sustainable practices. We sat down with Linde Material Handling Australia’s Allan Spackman and Greg Wood to unearth the environmental benefits – and dispel the myths – around lithium-ion forklifts. To decide on the right equipment for your warehouse, it’s not just about power and efficiency. In today’s world, sustainability matters. As the interest in lithium-ion forklifts grows, many wonder about their environmental impact.

LIFESPAN AND RECYCLING: THE LITHIUM ADVANTAGE “A lead-acid battery typically lasts around 1500 cycles,” says Allan Spackman, a warehousing/power solution expert at Linde Material Handling Australia. “With lithium, you’re looking at between 2500 and over 4000 cycles. Essentially, this longer lifespan reduces the recycling frequency. Lithium batteries can be completely recycled. However, when it comes to lead-acid batteries, the quality of lead degrades with every recycling process, leaving behind significant amounts of acid.” Given the global shortage of lithium recycling facilities, Linde has been proactive. “The Kion Group, Linde’s parent company, has partnered with one of the largest lithium-ion recyclers globally. This collaboration ensures responsible disposal,” says Allan. Moreover, these batteries can be repurposed for lighter applications, giving them a second life before recycling becomes a need.” Linde’s lithium-ion forklift. Greg Wood expands on the recycling

Lithium-ion forklifts are not only transforming supply chains but also spearheading advancements in sustainable practices. process: “A battery’s lifecycle consists of four main stages: initial assembly and use, refurbishment for secondary use, remanufacturing for alternate applications like stationary batteries, and finally, recycling. Our collaboration with companies aims to recycle up to 95 per cent of the battery mass. Discussing Linde’s approach compared to competitors, Greg Wood emphasises the commitment to exceeding standards. “While there are mandates like the EU directive that requires recycling at least 50 per cent of industrial batteries, our vision goes beyond. We’re striving for a 95 per cent recycling rate for each battery,” he says.

SOURCING MATERIALS: ADDRESSING ENVIRONMENTAL CONCERNS Of course, before a battery reaches the end of its life, it starts with sourcing materials. Isn’t it true that the materials for lithium-ion batteries are tricky to source sustainably and ethically? “Yes and no,” says Allan: “Yes, there are concerns, especially about cobalt’s sourcing, which has been

associated with exploitation. However, many are transitioning to cobaltfree lithium technologies like lithium ferro phosphate.” The environmental impact of using lithium-ion batteries is also less detrimental than one might think. “Whilst the production of lithiumion batteries may be slightly more energy intensive than production of lead-acid batteries, our internal and certified life cycle test assessments reveal that energy consumption during the use phase is in-fact the largest contributor. As such, the energy efficiency of our trucks is always a top priority. Furthermore, lithium-ion batteries and chargers have an energy efficiency of over 90 per cent. By simply switching to lithium-ion cells, you can reduce your carbon footprint by around 30 per cent.”

LOOKING AHEAD As the world shifts towards more sustainable operations, understanding the environmental implications of our choices becomes essential. With companies like Linde leading the charge in responsible practices, the future of lithium-ion forklifts is not just efficient but also green.

MHD DECEMBER 2023 | 19

MHD INDUSTRY NEWS & OPINION

SIMPLIFYING COMPLEXITIES WITH EXTENDED VISIBILITY

roject44’s Margaret Selid explains to MHD how its Extended Visibility solutions simplify the complexities shippers are dealing with in the modern-day supply chain. As global supply chains get increasingly complex, visibility becomes more critical. Still shippers struggle to track shipments across modes, nodes, and carriers, leading to reactive exception management that disrupts efficiency, driving up costs and eroding customer experiences. project44’s new Extended Visibility solutions simplify some of the most complex scenarios facing shippers today, merging data streams from carriers and freight forwarders to deliver a single source of truth for goods in transit, eliminating costly blind spots and delivering visibility from door-to-door. Read on for three ways Extended Visibility can simplify your supply chain:

1.ELIMINATINGCOSTLY VISIBILITY GAPS AT INTERCHANGE POINTS Problem: A lack of seamless multimodal visibility across pre-carriage, main leg, and on-carriage moves, especially for the 70 per cent of shipments that include a landside move handled by forwarders. Solution: Because our Extended Visibility solutions connect shippers not just with every carrier in their network but every forwarder as well, we’re able to eliminate the blind spots at interchange points and provide a single snapshot view of the shipment’s entire journey. Such a consolidated and complete view leads to increased confidence, ensuring timely deliveries and satisfied customers.

2. AUTOMATING PROCESSES TO REDUCE MANUAL EFFORT Problem: Overreliance on manual processes to track shipments–navigating multiple systems, handling countless spreadsheets, and calling carriers and

As the intricacy of global supply chains continues to grow, the importance of visibility becomes more pronounced. However, shippers are facing challenges in effectively monitoring shipments across various modes, nodes, and carriers.

forwarders for updates. And without in-depth freight knowledge, it’s a challenge for team members managing customer orders to obtain the info they need, leading to reactive exception management and frustrated customers. Solution: Extended Visibility reduces the manual effort required to achieve end-to-end visibility. Using proprietary data science techniques, we merge data from carriers, forwarders, and other sources to deliver a single source of truth with actionable insights and predictive ETAs. And since our platform links shipments to orders—including purchase orders, sales orders, stock transfer orders, etc.—team members across your organisation can easily get the information they need by the references they have, streamlining a process that could have taken hours or days to mere moments and making proactive exception management a reality. Simple.

3. DELIVERING GLOBAL VISIBILITY FOR GLOBAL SUPPLY CHAINS Problem: Your supply chain is global, but most visibility solutions specialise in a mode or two in one part of the world but can’t provide comprehensive visibility in strategic regions, leading to poor inventory planning and excess safety stock. Solution: project44 delivers visibility for more than one billion shipments annually moving across 186 countries. We’re the only provider with overthe-road visibility in China thanks to exclusive legal authorisation to transfer visibility data into and out of the country. Our broad and deep global coverage means our customers enjoy unparalleled visibility from the factory floor to the consumer’s doorstep—no matter where in the world the factory and the consumer are located. The health of your business depends on an efficient supply chain We’d love to show you how our latest machine learning-powered innovations can help you make your supply chain work.

20 | MHD DECEMBER 2023

MHD INDUSTRY NEWS & OPINION

PATRICK TERMINALS INTRODUCING OPTIBOOK

atrick Terminals and OneStop are pleased to announce the introduction of OptiBook, a container management solution integrated with the OneStop Vehicle Booking System. OptiBook will provide Patrick Terminals’ customers with enhanced visibility of container status, expedited access to available containers, and an improved slot booking process. “We are delighted to introduce the OptiBook platform at Patrick Terminals in Melbourne,” says Sam Askin, CEO OneStop. “OptiBook is an exciting solution designed to modernise and streamline container transportation management. OneStop looks forward to partnering with industry to roll out the OptiBook solution.” The new system will facilitate more efficient truck bookings for

available containers that have been cleared and discharged and provide a transparent process for confirming truck bookings. OptiBook will first be introduced at Patrick’s Melbourne terminal from Sunday December 03, 2023. OptiBook represents positive advancements in landside container management, using geofencing technology and providing real-time visibility into container availability. OptiBook also integrates with the OneStop Deliver App, a userfriendly platform designed to provide carriers with access to real-time communications, seamless job allocation and eliminate cumbersome manual processes. OneStop has designed OptiBook to incorporate feedback from landside operators. “OneStop has developed a container booking system that will

The OptiBook system aims to streamline the process of booking trucks for cleared and discharged containers, enhancing efficiency. It will also establish a transparent procedure for confirming truck bookings.

22 | MHD DECEMBER 2023

help to optimise landside container management, and we are pleased to collaborate with them to bring this innovation to the market,” says Michael Jovicic, CEO Patrick Terminals. “OptiBook will offer enhanced container visibility, real-time booking options based on container availability, resulting in a reduction in dwell time and improved truck flow through our terminals, all of which will optimise our landside operations. It’s a win-win for transport operators, truck drivers and our terminal team. We look forward to the go-live in December.” Transport operators will shortly receive documentation and support for transition to the new booking system. Carriers will also be provided with detailed instructions for downloading and using the OneStop Deliver App.

MHD INDUSTRY NEWS & OPINION

GARTNER RECOGNISES KÖRBER IN PEER INSIGHTS

The recent acknowledgment in the “Voice of the Customer” report is seen as a confirmation, strengthening the perceived impact and value of Körber’s offerings from the user’s standpoint.

örber Supply Chain has been recognised in the 2023 Gartner® Peer InsightsTM Voice of the Customer for Warehouse Management Systems (WMS). The “Voice of the Customer” is a document that synthesises Gartner Peer Insights’ reviews into insights for IT decision makers. This aggregated peer perspective, along with the individual detailed reviews, is complementary to Gartner expert research and can play a key role in a business’s buying process, as it focuses on direct peer experiences of implementing and operating a solution. Earlier this year, Körber was recognised as a Leader in the 2023 Gartner® Magic Quadrant™ for Warehouse Management Systems (WMS) for the fifth consecutive year. “While supply chains are becoming increasingly complex, the need for flexible, scalable software solutions and a trusted partner is more important than ever,” says Sean Elliott, CTO Software at Körber

Business Area Supply Chain. “Businesses require a partnership focused on the customer’s unique opportunities and needs through class-leading technology and individually tailored solutions.” In the recent 2023 Gartner Critical Capabilities for Warehouse Management Systems (WMS) Report, Gartner feels Körber exemplified the broad range of its supply chain software solutions by being recognised in all five levels of warehouse operation use cases. This latest recognition in the “Voice of the Customer” report, it believes, solidifies the impact and value of Körber’s offering from a user perspective. Based on reviews collected, the report reveals that customers gave Körber an overall rating of 4.6 out of a possible 5 based on 41 reviews as of August 31, 2023. Moreover, 95 per cent of reviewers said they were willing to recommend Körber. Placed in the upper-right corner of the “Voice of the Customer” grid, Körber has been recognised with the Gartner Peer

Insights Customers’ Choice distinction. More than 4,700 customers worldwide are re-imagining their supply chains with Kӧrber, including: • G lobal machinery spare parts player, Thermote & Vanhalst (TVH), capitalises on Körber’s WMS and WCS to increase agility and resilience across its global network of warehouses at 48 sites • A pparel retailer, Ariat International combines Körber’s WMS and an AMR solution from Geek+ to mitigate issues of labor inefficiency and facility optimisation to improve the end customer experience • A ustralia’s leading retailer of office products, Officeworks, relies on more than 100 AMRs, voice and RF users, and Kӧrber’s WMS to enhance warehouse associates’ wellbeing and safety • E urope’s leading manufacturer of workwear, Strauss, puts their trust in Körber’s WMS, WCS and DOM for end-to-end supply chain optimisation in light of rising demand. MHD DECEMBER 2023 | 23

MHD COVER STORY

WESTRAC POWERING THE FUTURE WITH AUTOMATION One of the world’s largest authorised Cat® equipment dealers, WesTrac, has automated its Tomago spare parts warehouse in NSW with the Dematic AutoStore system. MHD found out more from WesTrac and Dematic.

esTrac is one of the world’s largest authorised Cat® equipment dealers. It provides customers with a wide range of machinery and equipment, along with comprehensive whole-of-life management solutions aimed at making equipment ownership and operation as easy, profitable, and safe as possible. This support covers the mining and construction industries in Western Australia, New South Wales, and the Australian Capital Territory (ACT). Employing more than 4500 team members and approximately 450 apprentices in its nationally accredited training institute, WesTrac is dedicated to delivering exceptional value to employees, customers, shareholders, and the community. WesTrac’s commitment to excellence revolves around long-term customer relationships, unwavering dedication to customer service, safety, quality, and environmental concerns. “WesTrac is one of the largest authorised Cat dealers in the world and our Tomago warehouse in NSW has an essential role to play in this, as it is the central distribution centre for our 17 regional branches, as well as our seven main workshops here on site,” explains Natalia Trewin, Warehouse Operations Manager, WesTrac. “The Tomago facility is a highvolume operation, storing 80,000 SKUs and we pick 40,000 lines a week here.”

WESTRAC’S GROWING INVENTORY AND CUSTOMER-BASE The previous WesTrac warehouse was constructed a decade ago. It was operated manually and over 24 | MHD DECEMBER 2023

time WesTrac had seen a 30 per cent increase in inventory and customer base growth, resulting in a surge in orders to fulfil. “Previously, operators worked on a double storey mezzanine with a very manual picking process where they

improvements and efficiencies to keep up with technological advancement,” adds Natalia. “We needed to maximise our existing floor space, and to diversify our storage solutions, so we looked at what we could do to densify our

walked up and down aisles with trolleys and RF devices being directed to pick orders,” says Natalia. “Our team members would be picking from shelves that ranged from foot height all the way up to shoulder height.” WesTrac is well-known for its technological innovations through Cat equipment, but it’s also committed to internal projects that offer real advantages to its customers. Operating around the clock, seven days a week, to offer efficient service to customers, WesTrac’s Tomago warehouse needed a solution that could help overcome the challenges of a competitive labour market. “As a customer-focused organisation, we knew we needed to keep looking for

existing footprint.”

ADVANCEMENT THROUGH AUTOMATION After evaluating multiple automated solutions, WesTrac decided on an AutoStore™ solution powered by Dematic, which is driven by Dematic’s intelligent software. AutoStore is an automated storage, goods-to-person (GTP) picking and fulfilment solution, designed to maximise warehouse space and minimise manual labour. When compared to a typical manual warehouse operation, AutoStore streamlines the process significantly, creating a highly efficient picking system – with one picker working at the equivalent of four to five

WesTrac’s Warehouse Operations Manager, Natalia Trewin, and Warehouse Supervisor, Georgia Denton.

MHD COVER STORY WesTrac’s Tomago warehouse needed a solution that could help overcome the challenges of a competitive labour market.

manual pickers. “AutoStore was chosen for its densification capacity, the softwarepowered smarts behind its picking processes, and the speed at which it is able to pick parts for us,” says Natalia. The Dematic Autostore system is designed to enhance space efficiency and accelerate the processes of selecting and storing parts, ultimately streamlining the parts distribution process. The system resembles a large Rubik’s cube with densely packed totes that can be subdivided into various sections based on the parts being picked. These totes are stacked within a cube, and robots are responsible for identifying part storage locations and retrieving them from the cube. “The WesTrac AutoStore system features 15,350 segmented bins, 24 robots, four inbound conveyor ports for replenishing products into the system, and six goods to person (GTP) stations underneath a mezzanine tunnel,” explains Seth van Dijk, Business Development Manager, Dematic. “Customers place their orders, the WesTrac warehouse management system (WMS) then drops those orders into the Dematic warehouse control system (WCS). The WCS then directs the robots to go and retrieve all the

SKUs that are needed to fulfil those orders and delivers them to the GTP pick stations. “It’s there that a WesTrac operator will be instructed to pick the right products into the applicable order totes, before placing it on the conveyor to be directed down a sorter. At the end of the sorter, those orders are then packed and dispatched for delivery to the end user.” Initially, part locations were determined using historical consumption data, with the softwarepowered robotic system adapting these locations based on real-time usage data over time. An important part of the product range able to be handled by the Dematic AutoStore system is Cat Reman Parts – used items which are factory remanufactured to their original specifications, so they deliver good-asnew performance and long life. The recycled range provides sameas-new performance and reliability at fraction-of-new costs, while reducing the supply chain pressures and environmental impact of importing new components from overseas. AutoStore is a uniquely scalable solution. The grid can be easily expanded with minimal interruption and progressively filled with bins as

storage demand grows. Businesses only need to invest in enough capacity to cover the shortterm, allowing businesses to save their money for later, when the business reaches its growth targets, without overcapitalising if it doesn’t. AutoStore is also one of the most sustainable warehouse picking solutions available today. AutoStore robots use power regeneration technology to reduce energy consumption, and typically consume less power than a toaster.

AUTOMATION SUPPORTED 24/7 Dematic worked closely with WesTrac to design and integrate the AutoStore system. The installation of AutoStore commenced in August 2022 and in June 2023 the new system was launched and became operational. “When you’re very invested in the project, go live is a bit of a nail-biting experience,” says Georgia Denton, Warehouse Supervisor, WesTrac. “Everything went to plan, and it went really well. We were very happy when we started to see robots delivering parts down the chute. It certainly gave us a real sense of accomplishment and achievement.” Given the complexity of WesTrac’s MHD DECEMBER 2023 | 25

MHD COVER STORY

The Dematic Autostore system is designed to maximise space efficiency and accelerate the process of order picking.

automation, it was crucial to have ongoing service and support from Dematic in place to enhance system uptime, maintain uninterrupted throughput, and ensure peak production efficiency. Continual support brings various advantages, such as minimising downtime caused by component failures, reducing overall system maintenance expenses, extending the system’s operational lifespan, and the assurance that Dematic, the system’s designer and builder, is readily accessible for servicing the system. “Dematic was really supportive during our implementation and go live,” says Natalia. “Whenever we had any questions about how the system was going to work or how we could optimise it, Dematic was always there to answer any questions we had. “Now, if there’s a stoppage or some sort of issue that WesTrac sees with the system, we call the Dematic 24/7 26 | MHD DECEMBER 2023

hotline. On most occasions, we’ll be able to remotely log into the system, have a look at the software and report back on what might be the issue. “If it’s something that’s electromechanical, then we have Dematic technicians that can come to site and rectify the system, with a view to returning to full capacity as soon as possible.” To facilitate easy identification, each robot has been assigned a unique name, such as Wall-E and Bumblebee. “As a way to keep our team members engaged in this project, we ran a competition to nominate names for all 24 robots,” says Georgia. “The winner of the competition was Cata-picker and some other great names we had were Pickerella, Pickachu, R2D3, and “SirPicks-A-Lot.”

EXCEEDING PRODUCTIVITY AND CAPACITY TARGETS Dematic’s AutoStore system has

introduced a new level of productivity for WesTrac, which is supporting the company’s growth trajectory and customer service. “Since we went live, we’re already exceeding the targets that were set in terms of what the system was capable of doing, which was picking over 500 lines per hour, or 30 per cent more with our existing headcount,” says Natalia. “Whereas previously, with the same amount of people, we were only able to pick 300 lines. “The speed and density of the solution means that we can get urgent orders out to customers within five to 10 minutes if needed. Our customers rely on us to ensure they can keep doing the work that they need to do, so it’s really important that we’re able to step up our service to meet their needs.” From a storage density perspective, AutoStore has significantly increased WesTrac’s available space by

MHD COVER STORY 1000 square metres, facilitating increased responsivity, quicker parts distribution, storage of a broader product range, and extended delivery cut-off times while still guaranteeing same day delivery. All these factors contribute to an enhanced customer experience.

to pick at low or high levels. Furthermore, the reconfiguration of warehouse tasks under AutoStore enables the diversification of employee roles, with more focus on technology and safety, which is instrumental in helping WesTrac to attract and retain talent.

FAST RESPONSIVENESS TO CUSTOMER ORDERS

FLEXIBILITY AND SCALABILITY FOR FUTURE GROWTH

The dynamic AutoStore system uses AI to adapt to real-time usage data, ensuring optimal placement of highdemand parts, which in turn, supports faster customer order fulfilment. “If we have a regional branch order a part before 4pm, they’ll have it before 8am the next morning,” says Georgia. “If a mining customer in our region orders something before 10am, they’ll get it that afternoon. “When it comes to earthmoving machinery, the smallest of parts like a tiny seal - can make or break a machine. Being able to prioritise these parts within AutoStore allows us to deliver them to our customers quickly, which has led to positive feedback.”

ENHANCED OPERATOR ENVIRONMENT WesTrac’s AutoStore has also revolutionised safety standards through minimisation of human involvement in order retrieval and improved ergonomics. Now, all parts are delivered to an operator at around waist height, which avoids them bending or reaching

Storage space and commercial real estate footprints are key challenges for organisations like WesTrac. Either by leasing or buying an existing parcel of land, building new facilities, or making use of existing structures, an organisation’s commercial footprint can be a substantial (and growing cost) of business. With the highest storage density of any GTP solution in the market, AutoStore maximises existing spaces, limiting the need for costly commercial real estate expansion. The system’s scalability also ensures readiness for future growth, making it a pivotal addition to WesTrac’s operational infrastructure. “One of the great features of AutoStore is that we’re able to expand the system without interrupting operation of the existing system,” explains Natalia. “It’s very easy to come back to site and put more robots on the grid, and then you have more throughput over the weekend. Additionally, the system

is designed for us to come back and build more grid, buy more totes, and that way we can grow storage.”

OPTIMISED INVENTORY AND RETURNS MANAGEMENT The Dematic AutoStore system enhances stock control accuracy and ensures seamless integration with existing ordering systems. This, in turn, positively influences the often very challenging returns process. “When products are returned, we’re able to bring that product directly to an AutoStore port, then a robot will bring the appropriate tote to that port, and we can put that return back into the tote with the same parts without needing to walk through the warehouse,” says Natalia.

AUTOMATION POWERING THE FUTURE Embracing advanced technologies, WesTrac is committed to using automation to offer enhanced support to its customers, marking a new era that is powering the future of the company. “We’ve been in partnership with Dematic for over 10 years, and they’ve been supportive of us in optimising and improving our warehouse throughout that time, including with the implementation of the AutoStore,” says Georgia. “We’re also now looking at what other automated technologies we can bring into our distribution centre.” ■

Dematic’s service and support is crucial to ensure system uptime and peak efficiency.

MHD DECEMBER 2023 | 27

REACHING THE SKIES WITH MULTI-STOREY WAREHOUSING As Sydney continues to have the tightest industrial vacancy rates in the world, the harbour city has become home in the past 12 months to Australia’s first multi-storey warehouses. Colliers’ Michael Crombie and Trent Gallagher explain to MHD why these towering developments are the future.

hile demand for industrial assets continues to surge and vacancy rates remain at an all-time low across Australia – particularly in the New South Wales capital of Sydney – developers and investors are turning to the notso-new concept of multi-storey warehousing. Further to the high demand, lack of land, and being in infill markets such as South Sydney, Central West and Inner South West – which are close to Sydney CBD – Port Botany and the Airport are the main key drivers in the shift to multi-storey warehousing and why it’s working so well. Michael Crombie, Director in Charge and National Director, South Sydney, who’s been working at Colliers for the past 20 years, has been collaborating with fellow colleague Trent Gallagher, National Director, on this transformative trend, which is reshaping the South Sydney, Central West and Sydney South West markets. To date, both agents combined have sold north of $1 billion worth of land in these key infill markets for the purpose of multi-storey developing, with the first ever multi-storey estate having just reached practical completion at 45 Burrows Road, Alexandria (AXIS).

“Landowners try to maximise their underlying land value,” explains Trent. “The shift in focus occurred off the back of the huge shortage of industrial land within South Sydney as a result of rezoning to higher and better use, government infrastructure upgrades and unprecedented industrial demand off the back of COVID-19, which accelerated the e-commerce business ahead of its time within the Sydney market.” Companies such as Goodman, Charter Hall, Hale, Dexus, and Stockland all recognise the potential of multi-storey developments and have extensive experience dealing with landholdings in Asian countries like China, Japan and Singapore. “Goodman have delivered Australia’s first multi-storey development at 45 Burrows Road,” notes Michael.

“Hale will deliver the second multistorey development at 42-52 Raymond Avenue, Matraville and Charter Hall will then deliver 520 Gardens Road, Alexandria. All three sites are in the core South Sydney market. This expansion though isn’t confined to a single region; it’s permeating other key infill markets such as Inner South West Sydney, the central west corridor, and even the North Shore.” Trent adds: “With gross rents being approximately 35 per cent to 45 per cent cheaper in Sydney’s Inner South West and Central West, precincts along the M5 and M4 Motorway have proven to be an attractive alternative while still offering great access to the CBD, Port Botany, and Sydney Airport through recent infrastructure upgrades in the South Sydney market such as the Westconnex, which has almost

Multi-storey can only be on a site that’s more than two hectares and mostly suited to infill locations.

TAKING WAREHOUSING TO A NEW LEVEL With record low vacancy rates in Sydney sitting at around 0.3 per cent, and huge demand from occupiers to be located close to Sydney CBD within infill markets, it’s allowing for this new asset class to be at the forefront. 28 | MHD DECEMBER 2023

Artist Impression - 42-52 Raymond Avenue, Matraville.

BROUGHT TO YOU BY halved travel times from South Sydney to these precincts.”

warehousing becoming a lot more prevalent in the West,” adds Trent.

EXPANDING SIZE BY GOING HIGHER

INCREASING OPERATIONAL SPEED AND EFFICIENCY

Sydney’s upgraded motorways, including the M4, M5 and M8 (Westconnex) have reduced travel times between key destinations, ranging from Sydney Airport to Port Botany and major industrial areas in Sydney Central West and Sydney South West. “South West Sydney and the Central West has seen a substantial rise in industrial supply over the same period, enabling users to relocate to newer facilities, often at a significantly discounted rate compared to what they were paying in South Sydney,” says Trent. “Over the past five years, approximately 1,500,000 sqm of new stock has been added to the South West Sydney market, representing 40 per cent of Sydney’s total supply over the period.” “When analysing the map, it’s evident that many of these initial multi-storey developments cluster around key interchanges in Alexandria and St Peters,” adds Michael. “Qantas sold a strategic parcel of land in the Mascot precinct. We sold it to LOGOS for $802 million.” LOGOS, with its offshore capital and experience, partnered with different stakeholders to leverage a higher height limit, reaching 44 metres compared to the typical 18 to 24 metres in the region. Builders are competing for positions, eager to establish themselves as specialists in multi-storey construction. Michael says occupiers seeking space above 3000 metres in South Sydney find themselves in a market with zero per cent vacancy. “Multi-storey developments allow investors to double their net lettable area, making it financially viable despite the initial costs.” “Although initial developments are evident within South Sydney, in recent years, the distinction between the South Sydney, South West industrial and Central West markets has become increasingly blurred, facilitated by significant infrastructure improvements and tenant migration, which has seen multi-storey

Most typical single level industrial business parks have a site coverage of about 60 per cent. That gross floor area is underdelivering on capacity. Whereby a two storey multi-storey development will allow for an FSR in excess of 1:1, and if a builder were to go three to five stories, that FSR would continue to grow. “Another of our deals was for the CAE flight training centre facility, which was a low-cost four storey multi-storey development,” says Michael. “As of today, there have been eight lease deals within the multistorey development sector by which Colliers have transacted five of them.” In Sydney South, the existing industrial assets are generally of an older nature. The average ceiling height is six to seven metres. Many are in between 4.4 and 8.4 metres in height. Michael notes that for some owner-occupiers and investors, it’s a flight to quality while for others, it’s related to ESG requirements. Many are looking for 10,000 square metre or more facilities. “It’s important for investors to remember that multi-storey developments are simply two warehouses on top of each other instead of side by side,” explains Trent. “The ramps and the buildings are designed to maximise both speed and efficiency. “The main difference is the ground floor tenancy will have more columns whereas level one doesn’t, but due to the size of the warehouses, the columns are spread out broadly to accommodate the racking systems, which are installed afterwards. “Multi-storey is the future of warehousing and it’s here to stay because it maximises the land value and increases the income for potential owners. We’re going to see more of it.”

PAYING INITIAL COSTS FOR LONG-TERM ROI Multi-storey can only be on a site that’s more than two hectares. It has to be a sizable parcel of land to accommodate the ramping system. Michael and Trent have been doing

multi-storey development schemes for the last 10 years except they were originally smaller boutique strata developments. The only difference now is that with a lack of land and strong demand for certain locations, interest has increased, and institutions are now building them on a much grander scale. “There are benefits other than scale,” says Michael. “If an owneroccupier wants a 30,000 square metre building near a port, we usually can’t accommodate that requirement because we don’t have a site of those kinds of proportions. This is where multistorey allows you to have multiple floors to maximise your area, which improves the scaling.” Owner-occupiers are now asking: do I upgrade my facility or demolish it and rebuild multi-storey? Trent reveals that besides a business being able to double its net lettable area, it can also have a return on investment over a 10-year period. All they have to first deal with is the considerable cost of constructing the warehouse. “You’re doubling the building area whilst outgoing costs remain the same,” adds Michael. “It means your outgoings are halved. An occupier is looking at their net rent plus outgoings according to a gross rent. This means the lessor can charge a higher net rent and make multi-storey developments more cost effective. “These buildings have different heights with some being a little lower on the ground, but you’ve got columns. For some companies, their businesses need to be on the ground floor, and it’s usually due to them having heavy products and some have fast-moving freight or even cold storage, so they need to be able to move product in and out quickly whereas others who want to utilise the racking capacity, they might choose to stay on level one.” ■ Reach out to Colliers Industrial experts today to learn more about multi-storey warehousing and how we can maximise the potential of property for you.

MHD DECEMBER 2023 | 29

ADDRESSING SHIPPING CONTAINER CHALLENGES Australia has some unique challenges when it comes to managing shipping containers for import and export freight. Chris Hudson, Senior Associate at Prological provides an update on the local container scene and unveils some potential logistical solutions to current issues faced in the supply chain.

hen it comes to containerised freight in Australia, there’s an imbalance between what comes in, and what goes out. Essentially, most shipping containers coming into Australia are full, yet a significant portion are exiting the country empty. Exact figures can be seen in the latest Waterline report of the BITRE – demand for full imports exceeds demand for full exports by a ratio of about 1.5 to 1.

DEALING WITH CONTAINER SHORTAGES Significantly, the majority of imported goods to Australia come in forty-foot equivalent units (FEU), whereas most of our exports are containerised in twenty-foot equivalent units (TEU). Estimates in the ACCC Container Stevedoring Monitoring Report in 2021 show that the average tonnage of an import FEU is 11 tonnes, compared with the Australian export TEU average of 19 tonnes. This is because much of what is imported is consumable items that have low density, which makes sense for the larger size. Whereas exports are primarily agricultural goods and raw materials which have a higher density and therefore better suited to TEU. These disparities in the import/ export (IMEX) container requirements pose substantial challenges for our ports and our container parks. On a fundamental level, unless Australia becomes a significant manufacturer of goods again, to add 30 | MHD DECEMBER 2023

to the abundance of raw materials, agricultural and food product we currently export, this discrepancy in container sizes will likely remain problematic for years to come. More recently, this problem was exacerbated to the extreme by shipping freight supply chain disruptions brought on by the pandemic. This created a shortage of shipping containers – not because there was enough actual containers – but because containers weren’t in the right locations and were often the wrong type for export. When restrictions started happening, cargo ships that had already departed Asia dropped off their containers full of goods but couldn’t reload these, leading to containers piling up in ports and empty container parks (ECPs) across Australia and around the world.

Container Transport Alliance Australia (CTAA) director Neil Chambers echoed this message in the Australian Financial Review: “an FEU full of soft fluffy toys from China is useless for heavy cargoes usually assigned to TEUs.” This, unsurprisingly, created a

container before sending it back to the ship and back into Asia – but with the hiring costs escalating, and the dehire timeframe shortened, it became more lucrative to send these empty containers back into markets such as Asia where the container could earn revenue for the shipping line. Despite the costs of shipping containers having dropped in 2023, this shipping out of empty containers has become more challenging – as the velocity of turning containers around has gone from 21 days to seven – resulting in more and more time pressures for all involved. For large importers, shorter windows to avoid detention charges results in less flexibility; a requirement to smooth the flow of containers through a distribution centre. Similarly for exporters to obtain, load, and transport an export ready container port-side within a week can be challenging. This challenge is especially true for exporters in regional areas who, due to the distance empty containers must travel, often don’t get access to a container until well into the hire period.

huge demand for export ready TEUs, whilst simultaneously heightening the challenge regarding empties. With ECPs at capacity, the dehire period got reduced from typically 14 to 21 days to just seven days. Prior to the pandemic, there was a general assumption that someone in the chain would try to fill a

A Transport for NSW report revealed that ECP capacity needs to increase by 12,000 TEUs to meet 2031 demand (a total of 59,000 TEUs). It projected that with current issues in regard to ECP capacity, the costs associated with empty container inefficiencies will increase to $100 million per year.

NEEDING MORE TEUS

Chris Hudson, Senior Associate at Prological.

UTILISING RAIL FREIGHT And that’s New South Wales alone. A government-commissioned review of the Victorian container supply chain suggests that by 2031 empty containers will by the state’s largest export. Another noteworthy point to make is that while we are a large island nation, we are highly urbanised. This means that most international containers don’t travel far outside of our metropolitan centres – instead they are de-stuffed usually within 50 kilometres of a port, and as a result we have very few import containers heading to regional Australia. Further complexity is that our domestic freight channels are also decoupled from the IMEX market, adding touch points and handling costs for rural containerised exporters. In context of these challenges, we need to ask, how can we move these freight containers more efficiently and economically? While rail might seem a plausible solution, it traditionally has not been a cost competitive one. As most imported containers are delivered within that 50km radius from port, the cost benefit of rail is not realised because the distances travelled are not long enough to offset

the additional handling costs. In numerous Australian metropolitan areas, freight trains getting to the port compete with passenger service pathways on our urban rail networks. This creates risks for reliability and timing of shared infrastructure freight services. Numerous studies continue to confirm when dealing with tight timeframes, road is still the more reliable and cost-effective option, despite a lot of intention. However, for IMEX terminals to have maximum utility, there is a requirement for freight generators to migrate closer to them.

MANAGING INCREASING FREIGHT For Queensland and Victoria to leverage the freight corridors provided by inland rail, there must be improved connectivity. For example, if you consider the Moorebank precinct in Sydney, the strategy there is that a domestic freight rail terminal adjacent the IMEX terminal with precinct infrastructure creates efficient links. Whilst in its infancy, this model – if standardised across Australia – could become an important ingredient towards a solution to some of our

containerised freight issues. In the meantime, there have been some emerging trends in how we better manage export containers. While a lot of logistics is spent running empty containers to the source of freight in Australia, there has been a movement among some of the meat packers to centralise their containerised freight. Rather than running containers out to the regional areas, they’re running frozen product in by road freight and loading the export containers close to port instead. Overall, it’s important that industry and state transport authorities continue to work together in coming up with innovative solutions to managing containerised freight, especially considering the forecast for growth. According to the Productivity Commission’s report ‘Lifting productivity at Australia’s container ports: between water, wharf and warehouse’, the containerised freight task is forecast to increase by more than triple at the Port of Brisbane, nearly triple at the Port of Melbourne and two and a half times at Port Botany in Sydney by 2050. ■ Chris Hudson Senior Associate, Prological MHD DECEMBER 2023 | 31

MHD INDUSTRY NEWS & OPINION

FORMER ARGON & CO PARTNER RETURNS

rgon & Co, the global management consultancy specialising in operations strategy and transformation, is delighted to announce the return of Partner, Frans Verheij. The company says Frans is no stranger to the ANZ business, having been the Managing Partner at Argon & Co prior to is merger with Pollen Consulting. Over the last two years, Frans has enjoyed a quick career break before supporting the business on a number of key strategic projects. “Frans grew the original Argon & Co business in Australia, the team and capabilities that merged with Pollen were a credit to his leadership,” says Paul Eastwood, Managing Partner Argon & Co APAC. “Over the last two years he has provided great counsel and guidance

to me, supporting the development of our ESG service offering and coaching the team. It is an honour to officially welcome him home, and we are very excited to work with Frans once again.” Argon & Co notes Frans has been an essential part of the development of the company over the past 16 years and will be an invaluable addition to the business’s future. With more than 30 years’ experience across different supply chain disciplines, Frans has held senior line management and consultancy positions in Europe, the United States, China, the Middle East, New Zealand, and Australia, demonstrating his extensive global footprint. His career has been marked by a commitment to excellence and innovation in supply chain strategy and supply chain planning

and optimisation. “It is great to be home!” says Frans Verheij, Partner Argon & Co Australia. “Having founded the Argon & Co ANZ business in 2008, after a well-deserved break, I can’t wait to write the next chapter of the already amazing Argon & Co story alongside Paul and the Leadership team. “I look forward to transforming our current and future clients’ operations whilst continuing to be their preferred partner and trusted advisor. I’m humbled and grateful for the overwhelming support and welcome from my friends and colleagues at Argon & Co.” With a profound personal commitment to sustainability, Frans has recently spearheaded the transformation and enhancement of Argon & Co’s Sustainability service offering across the ANZ region.

DHL PARTNERS WITH LIFESAVING PRODUCT MANUFACTURER

ajor global manufacturer of essential and lifesaving products for critically and chronically ill patients appoints DHL Supply Chain to manage its growing warehousing and logistics requirements in Australia. Thanks to its national coverage and expertise in life sciences and healthcare sectors, Fresenius Kabi Australia has signed a five-year contract with DHL for storage, inbound and outbound functions, which were previously managed in-house. DHL is managing the distribution of Fresenius Kabi Australia’s 400-plus product lines from its healthcaregrade facility at Horningsea Park, where a dedicated team is responsible for receiving, storing and dispatching Fresenius Kabi’s products in

the country. “Fresenius Kabi has a significant range of products that are used to save lives and help to improve the health of Australians, and we’re proud to be trusted with their logistics needs,” says DHL Supply Chain Australia CEO Steve Thompsett. “We’re confident that we will deliver on Fresenius Kabi Australia’s quality requirements at our state-ofthe-art healthcare-grade Horningsea Park facility, which meets all global regulations for storing life sciences and healthcare products.” The Horningsea park site is Australia’s first carbon-neutral warehouse. It was first established in 2020 as a dedicated facility for storing pharmaceuticals, medical devices, vaccines, animal health, diagnostics and

consumer health products. Temperature controlled for optimal storage of medical products – the site is powered entirely by green electricity. The 35,000 sqm site has a 30,000pallet capacity to manage future growth for customers. “DHL is the ideal partner to help us achieve our mission in Australia by providing state-of-the-art logistic and distribution services to provide our products to our customers in a more efficient way,” says Juan Villar, Senior Vice-President North east Asia-Pacific at Fresenius Kabi. With the corporate mission of caring for life’, Fresenius Kabi puts essential medicines and technologies in the hands of people who help patients and find the best answers to their challenges.

32 | MHD DECEMBER 2023

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MHD INDUSTRY NEWS & OPINION

PORT OF NEWCASTLE CLAIMS GOLD FOR SUSTAINABILITY

ort of Newcastle has been recognised for its outstanding environmental achievements, leadership and commitment to sustainability, by becoming a Gold Partner in the NSW Government’s Sustainability Advantage program. The Port has participated in the program since 2019, which is run by the NSW Government’s Office of Energy and Climate Change and supports organisations to embed sustainability into everyday practices, become more efficient by reducing energy use, water use and waste, and set targets for emission reduction. CEO Craig Carmody says the Gold Partner status is a reflection of the progress the Port has made in its sustainability journey over the past five years. “We have made significant inroads since we first launched our ESG Strategy to embed environmental, social and governance best practice in everything that we do and we are

proud to have created a culture of continuous improvement within the Port that drives the business to find new and innovative solutions to the sustainability challenges facing our industry,” Craig says. “To be recognised as a Sustainability Advantage Gold Partner is a fantastic achievement and is an acknowledgement of just how far we have come in such a short space of time; from our port-wide energy efficient lighting upgrade to the decarbonisation of our operations through the use of 100 per cent renewable power.” Chief Financial Officer and ESG Strategy Lead, Nick Livesey, says the Gold Partner status builds on Port of Newcastle’s 2023 GRESB (Global Real Estate Sustainability Benchmark) results, which saw the Port maintain its 5-star rating for a third consecutive year and increase its overall score to 96 out of a possible 100.

“Our focus is to create a resilient and environmentally responsible Port that continues to support the economic prosperity of the Hunter and NSW economies, along with local jobs,” says Nick. “This year alone the Port has increased its SBTi Scope 1 and 2 emissions reduction commitment to align with a 1.5 degree warming scenario, as well as continuing to lead the industry by setting a reduction target for Scope 3 carbon emissions. “We are also proud signatories to the United Nations Global Compact, the largest corporate sustainability initiative in the world, reflecting the Port’s commitment to aligning its ESG and diversification strategies with the principles of the United Nations Sustainable Development Goals. “By making sustainability a key priority in reshaping and reimagining our future we can ensure the Port is around for generations to come.”

Port of Newcastle has become a Gold Partner in the NSW government’s Sustainability Advantage program.

34 | MHD DECEMBER 2023

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MHD INDUSTRY NEWS & OPINION

VTA ANNUAL GENERAL MEETING SEES LEADERS ELECTED

Mike Lean acknowledged the Executive Council and Secretariat’s efforts and achievements this year.

t its 121st Annual General Meeting on Friday 10 November, the VTA Executive Council elected Murphy Transport Solutions CEO Cameron Murphy to the role of Vice President and re-elected President Mike Lean and Vice-President Dennis Ryan for further terms. The Council also elected Silk Contract Logistics managing director Brendan Boyd to the Executive Council, further strengthening operator representation on the Council, which sets the strategic direction of the Association and supports its Secretariat. “Since joining the Executive Council in 2020, Cameron has provided tremendous guidance and counsel during the disruptions of the pandemic and associated economic contraction. I’m pleased with his election as Vice President and look forward to his contributions over the coming year,” says CEO Peter Anderson.

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“Brendan Boyd has been a terrific supporter of the VTA as a member and with his election to the Council I anticipate a strong and enduring contribution to the deliberations of the Executive Council. He’s a strong and talented business leader and knows transport and the real-world challenges faced by operators and suppliers, and we welcome him aboard,” Peter adds. Delivering his fourth President’s Report since being elected to the role in 2019, Mike Lean acknowledged the Executive Council and Secretariat’s efforts and achievements this year. “As a Victorian-based Association we have a strong focus on the issues that matter most to our Victorian members and associate members. This year we’ve had very strong engagement with stakeholders on local roads and infrastructure, with additional funding secured to repair and reinstate roads that were washed away in last year’s floods,” Mike says.

“Our strong relationship with the Victorian Government has been key to our successful execution of the Driver Delivery program, which has produced hundreds of new qualified drivers to the industry and is helping to ease driver shortages.” Lean says it has been a busy 12 months at a federal level with the VTA’s membership of ARTIO seeing the Association closely involved with proposed Industrial Relations reforms. “Through our sensible collaboration with transport stakeholders, we’re on the cusp of achieving many positive outcomes for our industry when it comes to minimum standards,” he says. “This will provide safety and productivity gains for operators and their workforce. This has created a great deal of goodwill between the Association, federal ministers and bureaucrats, and unions, which will benefit the VTA long-after the legislation is passed.”

MHD INDUSTRY NEWS & OPINION

AUSTRALIA POST UNVEILS NEW SERVICE IN TIME FOR CHRISTMAS

hen an Australia Post team member cannot safely deliver an eligible parcel at a customer’s address and cannot return the parcel to the nearest Post Office during operating hours, they will place the parcel in a free 24/7 Australia Post Parcel Locker located within 1km of the customer’s address. MyPost customers will be notified via the AusPost app or SMS that their parcel is in a secure Parcel Locker near their home, ready for them to collect whenever it suits them over the next 48 hours. If the parcel remains uncollected after 48 hours, Australia Post will take it to the nearest Post Office for collection. Australia Post Executive General Manager Parcel, Post and eCommerce Services Gary Starr emphasises the convenience of the new service as the cyber sales ramp up and online shopping surges in the lead up to Christmas. “We know customers are very

busy towards the end of the year, so Australia Post is supporting them through more convenient delivery options,” Gary says. “Collecting missed deliveries from nearby Parcel Lockers means customers who aren’t home for their delivery and can’t make it to the Post Office can still collect their parcels via our Parcel Locker network. “We delivered 52 million parcels last December and we’re expecting another huge festive season this year, driven by the growing popularity of cyber sales events. Providing customers with enhanced flexibility, security, and convenience by offering a way for them to collect their parcels at a time that suits their schedule is just another way we are supporting them at this time. Customers with a MyPost account or the AusPost app can already register to have their parcels delivered at no extra cost to any Parcel Lockers convenient to them, instead of their

home or workplace. Australia Post has more than 700 Parcel Locker locations nationwide, including at select train and petrol stations. In the past year, Australia Post has delivered 6 million parcels directly to Parcel Lockers and has accepted over 1.3 million new Parcel Locker registrations from customers. Customers wanting to register for a free Australia Post Parcel Locker can do so via the AusPost app on the Apple Store or Google Play. The AusPost app is also the best way to get trusted, accurate and legitimate delivery notifications that protect customer security. To give Christmas parcels the best chance of arriving on time, parcels should be sent by Monday 18 December for most destinations within Australia, or if sending via Express Post by Thursday 21 December. People sending to or from Western Australia and Northern Territory should allow a few extra days.

Customers with a MyPost account or the AusPost app can already register to have their parcels delivered at no extra cost.

MHD DECEMBER 2023 | 37

MHD INDUSTRY NEWS & OPINION

NAWO ANNOUNCES MENTEE PROGRAM

he National Association of Women in Operations (NAWO) announces the Victorian Mentee Sponsorship Program as part of its national Mentoring Program in 2024. Funded by the Victorian Office for Women, this program is focused on supporting and developing the careers of women working in the State’s manufacturing and energy sectors and is part of the Women in Manufacturing and Women in Energy Strategies. “Over the last 10 years NAWO’s Mentoring Program has mentored more than 750 women and inspired them to pursue successful careers in operations,” says NAWO CEO Louise Weine. “As NAWO’s reach and corporate membership grows, it’s very exciting to have this significant support from the Victorian Office for Women to provide sponsored places in 2024 for women in manufacturing and energy.”

Since its introduction in 2010, NAWO’s flagship Mentoring Program has been increasing participants year on year.

38 | MHD DECEMBER 2023

The Office for Women, part of the Victorian Department of Families, Fairness and Housing, continues to support the work of NAWO as part of the Victorian Government’s strategies to increase women’s participation in the manufacturing and energy sectors. Since its introduction in 2010, NAWO’s flagship Mentoring Program has been increasing participants year on year. In 2024, the program will enhance and broaden its offering and delivery, reach and mentor more women in operations nationally, and better measure the program’s impact. In addition, and for the first time, NAWO will be offering sponsored places for its Victorian cohort, specifically for women working in manufacturing and energy seeking mentorships. This program includes both group and individual mentoring in the following streams: • Four mentor circles from both industries – 25 women mentees

matched with five experienced operations leaders • O ne mentor circle for energy industry experience – women not currently working in energy but who are keen to • F ive one to one mentoring opportunities for women in energy or manufacturing matched with five experienced operations leaders The Victorian Mentee Sponsorship Program is available to all women working in Victorian manufacturing and energy, not just from NAWO’s 85 + member companies. NAWO has previously worked with the Victorian Office for Women including on the Inclusion Habits for Operations Leaders pilot program in 2022 and this year’s Women in Energy & Manufacturing Case Studies Series. In September 2022, the Victorian Government released the Inquiry into Economic Equity for Victorian Women, together with the government’s response. To support Inquiry Recommendation 19 – develop new industry strategies to attract, recruit and retain women in majoritymen industries – the Victorian Government announced it would deliver strategies for the energy and manufacturing sectors. The strategies will focus on supporting, upskilling and mentoring women, while removing barriers in these historically male-dominated workforces. NAWO’s Mentoring Program supports this strategy and will now be able to specifically focus on women in energy and manufacturing, with the ability to offer sponsored mentee places for women working in these sectors in Victoria. Further, NAWO will be able to provide sponsored places for women not currently working in these sectors, but who are interested to gain direct mentoring experience from energy and manufacturing operations leaders.

MHD INDUSTRY NEWS & OPINION

PREPARING FOR THE NEXT CRISIS

xperts from the University of Technology Sydney (UTS) explain to MHD how businesses can better prepare for the next supply chain-related crisis. The COVID-19 pandemic laid bare vulnerabilities in global supply chains, underscoring the urgency for Australian businesses and the government to enhance their readiness for future crises such as natural disasters or geopolitical unrest. Researchers from the UTS Business School have developed a comprehensive set of tools and strategies to improve the strength and agility of supply chains in the face of such challenges. Strategic supply chain management expert, UTS Associate Professor Sanjoy Paul, says a robust supply chain isn’t just about efficiency, it’s also about resilience, and it is important to be proactive rather than waiting for the next crisis to hit. “Modern supply chains are incredibly intricate,” explains Associate Professor Paul. “They can span multiple countries and involve numerous suppliers, manufacturers, logistics providers and distributors. A single point of failure can have cascading effects. The COVID-19 pandemic exposed significant flaws in Australia’s ability to manage crisis situations. Preparation can ensure that empty shelves, hoarding, and disruptions to the supply of essential items such as food and medicine are minimised. “Panic buying is a particular challenge, and the consequences can be far-reaching for vulnerable individuals such as the elderly. Managing panic buying requires a multi-faceted approach encompassing effective communication, clear guidelines, collaboration and adaptability.” UTS Professor of Management Renu Agarwal says any disruption to supply chains, from supplier failures to distribution issues, affects the end customer. “Businesses must make their entire supply chain not only stable

The research findings are published in a new book: Supply Chain Risk and Disruption Management.

and reliable but resilient, adaptive, disruption-proof… enough to shift on a dime when complex situations arise,” she adds. “Businesses tend to forget learnings from previous situations as they are focused on short-term gains. This is why government should play a critical role in promoting preparedness and collaboration among all stakeholders, and policymakers need to build sovereign capability in critical industries beyond defence.” The research findings are published in a new book: Supply Chain Risk and Disruption Management, which outlines a range of tools, techniques and approaches to managing risk across medical, pharmaceutical and other critical supply chains. Associate Professor Paul outlines four key strategies to minimise disruption: 1. Collaboration and coordination “Businesses are encouraged to collaborate instead of competing during national emergencies. Major retailers and manufacturers should work together to distribute and replenish supplies efficiently to alleviate consumer anxiety.” 2. Onshoring critical manufacturing “Bringing key manufacturing back to Australia can enhance control and minimise disruptions. This approach ensures that even if global supply

chains falter, essential products can still be produced locally.” 3. Transparency and communication “Businesses should provide clear information about their stock levels through effective digital communication channels, to help reduce fear and panic buying. Government intervention can facilitate transparent communication between businesses and consumers during crises.” 4. Preparation and scenario planning “Businesses and individuals alike should prepare for potential crises by developing mitigation strategies and alternative plans. Understanding alternative suppliers and having contingency plans in place can enable swift responses during disruptions.” The research team developed simulation models to test a range of strategies aimed at combatting disruptions such as panic buying, and found these tools were effective in mitigating risk and ensuring better demand fulfillment, reducing the impact of a crisis on consumers. Research papers: Overview of Supply Chain Risk and Disruption Management Tools, Techniques, and Approaches, Towfique Rahman, Sanjoy Kumar Paul, Renu Agarwal, and Ruhul Sarker. MHD DECEMBER 2023 | 39

MHD INDUSTRY NEWS & OPINION

ENGAGING SUPPLY CHAIN CONSULTANTS

xtolla tells MHD the smartest industry leaders are engaging supply chain consultants and here’s why you should too. Picture this: Efficient, agile, and resilient supply chain operations. Reduced costs. And effortlessly meeting customer expectations. Sounds too good to be true? Here’s how to make it happen: Bring in a specialised supply chain consultant. Gone are the days of sales pitches and presentations. Today’s supply chain consultants are laser-focused on fast-tracking a supply chain from struggling to success. Leading the charge is Extolla, a specialised supply chain solutions provider where ‘endto-end’ is not just talked about, but actually delivered. “Many companies initially question the need for a consultant, but when they see the bottom-line improvements across their supply chain and happier customers, the value is obvious,” says Extolla CEO Peter Kendall. Extolla works on a “C-I-O” formula – Consult, Implement, Operate – going beyond an advisory role to make supply chain changes happen, including training staff in new systems for long-term operational success. “Whatever we recommend, we implement ourselves rather than leave you with a deck of presentation slides. This “skin in the game” approach means our clients have a supply chain producing fantastic outcomes with no wasted resources or time,” says Peter. According to Extolla, here are five critical reasons businesses are using a supply chain consultant right now – and why you cannot afford to miss out: 1. Industry expertise With ESG reporting looming in 2024, increasing economic pressures and supply chain challenges, supply chain expertise has never been more in demand. Supply chain consultants are

40 | MHD DECEMBER 2023

global supply chain experts with hands-on industry and project experience. In Extolla’s case, their team have previously been both customers and suppliers, giving the business a unique insight to solve your most complex supply chain issues quickly. 2. Competitive advantage An efficient supply chain with high customer satisfaction is a significant competitive advantage. Extolla’s actionable outcomes improve profitability across all areas of your supply chain so you stand out in the market. 3. Value Supply chain consultants save time, money, and resources by advising the right agnostic solutions from the start, helping businesses avoid costly mistakes. This technology agnostic approach is key to long term solution viability. Extolla clients pay for clear deliverables supported by a team with real commercial and operational Today’s supply chain consultants are laser-focused on fast-tracking a supply chain from struggling to success.

supply chain experience to ensure on-budget and on-time results. 4. Speed to market A supply chain consultant gets things moving when internal resources have no time to research supply chain solutions and manage implementation. Extolla’s experts handle every physical and digital element of your supply chain transformation, taking the pressure and guesswork away. 5. Access to the latest technologies and insights What does a great supply chain look like? And what technology or systems does your business need to get there? A supply chain consultant has the answers. Market relativity data, network modelling, software, robotics, specialist IP – Extolla consultants put you front and centre of the latest systems, processes, insights, and technology, with a deep understanding of suitability for your business.

MHD INDUSTRY NEWS & OPINION

PROJECT44 SIGNIFICANTLY ENHANCES MOVEMENT

roject44 has announced significant enhancements to its platform, Movement, that simplify multimodal visibility and help customers maximise carrier data quality. The supply chain visibility platform company now delivers greater business value by streamlining some of the most complex scenarios facing shippers and logistics service providers (LSPs) today. “While many providers offer basic modal visibility, shippers adopting these solutions find themselves still grappling with costly blind spots as shipments transition between modes and carriers,” says Jett McCandless, Founder and CEO of project44. Shippers and LSPs struggle to gain visibility of shipments across modes and carriers – notes project44 – leading to reactive exception management and inability to plan effectively. project44’s new capabilities address

at Alcon, a multinational vision care products provider. “Extended Air Visibility from project44 gives us the real-time tracking capabilities we need to provide a great customer experience every time.” Enhancements to project44’s comprehensive suite of visibility products include: • Extended Visibility: Merges data from carriers and forwarders to deliver complete visibility from door to door, eliminating costly blind spots at interchanges so shippers can proactively manage inventory in transit and meet order due dates while minimising manual effort • OTR Visibility: Expanded full

truckload (FTL) and less-thantruckload (LTL) network coverage in the world’s largest road freight market by volume, including the only compliant solution in the market to enable cross-border data transfer, giving companies the market to enable cross-border data transfer, giving companies manufacturing or sourcing product in China complete visibility from factory to consumer door • S hared visibility: Lets brand owners and LSPs automatically share their project44 visibility experience with customers and partners for better collaboration without manual activities like phone calls and emails. Project44 has announced significant enhancements to its platform, Movement.

these challenges by connecting customers to every carrier and freight forwarder, delivering unmatched shipment visibility from door-to-door, connected to orders with line item and SKU-level granularity. “By definition, airfreight is time sensitive, but visibility has historically been difficult to achieve because shipments move and change hands rapidly,” says Curt Metzler

MHD DECEMBER 2023 | 41

MHD WAREHOUSING

KMART AUTOMATES OPERATIONS WITH TOMPKINS ROBOTICS Kmart has selected Tompkins Robotics’ tSort solution, an autonomous mobile robot, for its New Zealand operations. The USA-based automation company tells MHD why the discount department store retailer chose this solution for its DCs.

utomation plays a large role in high volume, complex supply chains to improve key metrics in delivery speed, quality, accuracy, security, and total operating cost. Recent labour constraints, increasing consumer demands and expectations, e-commerce growth, SKU proliferation, and the need for data visibility and digital transformation have served as catalysts to expand automation within multiple industries, and most specifically within supply chains and fulfilment operations. Advancements in technological innovations have fuelled the development of a newer generation of cutting-edge solutions that address both old and new challenges. These new solutions are shattering the barriers to business growth while offering much greater flexibility over traditional solutions within well-defined market segments such as retail, consumer products, and shipping. In the past, only very large organisations with access to strategic capital, advanced business strategies, and multi-year outlooks were able to invest in automation at Distribution & Fulfilment (D&F) operations. Typically, those investments were only seen at the large and scalable, high-volume grocery, pharma, and retail operations. Leveraging industry-leading mobile robotic automation has grown to cover many applications and areas in the D&F space and offer scale and mobility unavailable with traditional solutions. In businesses involving manual picking, sorting, and packaging operations, it is estimated that

42 | MHD DECEMBER 2023

operators spend half of their total time travelling inside large warehouses. With the simple principle of eliminating travel through robotic sorting technology, one can see how easy it is to materialise savings and enhance performance. Tompkins Robotics’ tSort systems are renowned for their affordability, flexibility, and scalability. A tSort system is also lower investment, requires less space and deploys quicker when compared to other automated systems. tSort is often paired with its own execution software that is easily integrated with other higher-level ERP/WMS software in a D&F operation. “The entire concept of tSort is to redefine item and case sortation to allow operations to have a 100 per cent

modular, scalable, configurable, and portable robotic solution to process goods to orders,” says Mike Futch, CEO of Tompkins Robotics.

MOBILE ROBOTS BENEFITTING RETAIL With many options available, it is important for leaders to carefully consider two factors: identify the right solution for their business and partner with the right vendor to deliver. In the case of Wesfarmers-owned department store Kmart, continued growth in their business along with the desire to be flexible within their operation necessitated evaluating new technologies to pilot and implement in their New Zealand D&F hub. Kmart is a much loved and trusted

tSort is often paired with its own execution software that is easily integrated with other higher-level ERP/ WMS software in a D&F operation.

MHD WAREHOUSING retailer that has more than 300 stores in Australia and New Zealand (ANZ) and employs more than 44,000 team members. With a network of D&F operations across ANZ, supply chain leaders were looking for a cost-effective solution that could increase their facility throughput, reduce the labour gap, and provide modularity to be transferred between facilities as needed to accommodate varying demand in their distributed logistics network. The network delivers to highvolume stores with a wide product mix and unique product handling requirements for case, inner pack, and item sortation to meet the annual and seasonal demand of the Kmart store network. “The challenge was to find a costeffective solution that improved safety and increased throughput in our NZ facility to support our growing store network and volume,” explains Dean Goulding, Kmart Head of Assets, DC Design and Automation.

PROVIDING THE RIGHT SOLUTION Seeking a best-in-class automation solution and through a detailed RFP process, Kmart ultimately selected Tompkins Robotics’ tSort system. The award-wining AMR solution optimises fulfilment operations and provides a wealth of benefits for retail replenishment, including: • High throughput: Sort systems facilitate high volume rates in a modular fashion to allow Kmart to scale the solution to fit the operation. • Rapid deployment: a typical tSort implementation takes less than half the time of traditional sortation systems. This allows for faster installation between peak seasons for minimal disruption to Kmart’s operations. • Low capital investment: tSort solutions are approximately half the cost of large tilt trays or crossbelt sorters, and additional robots and assets can be installed as needed to grow a system. This feature means you buy what you need as you need it – which postpones capital investment and allows complete utilisation of all assets. • Scalable & Portable: The tSort

Tompkins Robotics’ tSort systems are renowned for their affordability, flexibility, and scalability. solution is fully modular, configurable, and portable. Further, all elements and robots can be easily added, removed, or relocated at any time to meet changing demands and business requirements. This portable design enables to “lift and shift” the systems to accommodate an evolving distribution network. • Wide range of capabilities and applications: As a general merchandiser, Kmart has a wide range of products and varying packaging. tSort can process a wide variety of products and packages in many different environments and applications, including polybags, cartons, loose items, and many more product configurations. • Higher capacity in a smaller footprint: tSort’s multi-level design can process more than double the volume in less than 25 per cent of the space of traditional sortation systems. • Flexible and Robust Warehouse Execution System: tSort is powered by the cloud-based Tompkins Warehouse Execution System (tWES) and has 20 years of experience in integrating automated solutions to a variety of WMSs.

AUTOMATING OPERATIONS Tompkins Robotics’ tSort solution was installed, tested, and commissioned utilising mostly remote resources in

the midst of the COVID pandemic, and has successfully supported the operation since go-live in May 2021. The results for Kmart have been exceptional, including but not limited to the following: • S upports the reduction in manual handling activities on site. • I ncreased throughput to meet store growth and volume. • Improved inventory accuracy. chieved more than 60 per cent • A reduction in space over traditional solutions. • T he start of installation to go-live was less than five months, with an operational ramp-up to full production in just a few weeks. • A n improved financial outcome for the business. “Tompkins’s customer-first approach is refreshing and leads to the team constantly challenging the status quo,” says Dean. “The team effort and great attitude led to an extremely positive customer experience. The project team embedded themselves in the working operation, which allowed for a seamless transition.” C. Thompson Brockmann, EVP Operations with Tompkins Robotics adds: “The Tompkins Robotics and Kmart teams came together to apply this exciting technology for a set of requirements and challenges that would have been difficult to meet with traditional automated solutions.” ■ MHD DECEMBER 2023 | 43

MHD MEGATRANS2024

MEGATRANS FOCUSING ON SUSTAINABLE SUPPLY CHAIN In September 2024, Australia’s largest logistics event, MEGATRANS, is returning to Melbourne, bringing together industry experts to explore the many ways the supply chain can be made more robust and sustainable.

n a rapidly evolving logistics and supply chain world, MEGATRANS is rebranding itself to reflect the industry’s shift towards sustainability. Held every two years, MEGATRANS has built a formidable reputation as the leading supply chain and logistics event, and will run across 18-19 September 2024. The year 2024 will see the logistics industry make its most significant shift to date towards sustainability, with investments in this space set to

skyrocket, according to MEGATRANS Show Director Lauren Chartres. “The sustainable supply chain is going to be the top focus in the new year,” says Lauren, who oversees MEGATRANS, Australia’s largest logistics event taking place in Melbourne in September 2024. “The past few years have been about securing supply chains at any cost, after they were disrupted by the pandemic. Now that supply chains have settled, and stock levels risen,

The year 2024 will see the logistics industry make its most significant shift to date towards sustainability.

44 | MHD DECEMBER 2023

major logistics companies are telling us that they are looking to invest in sustainability.” It’s an investment, Lauren says, that is being supported by the federal government’s most recent budget that provided more than $4.5 billion in climate-related spending. This includes $20.9 million over five years to decarbonise transport and infrastructure. The freight transport sector currently contributes to 46 per

MHD MEGATRANS2024 cent of emissions nationally, and transporting people and goods around Australia is predicted to be the country’s largest source of emissions by 2030. Challenges of sustainability, Lauren points out are not just around environmental factors. She notes that the logistics industry is still struggling to secure and diversify its workforce. “We need to start building up the next generation of the logistics industry now,” says Lauren. “And it needs to be reflective of this generation so the industry can mirror its values and set itself up for the future.” The show will similarly offer solutions for companies investing in traceability, as well as cold chain solutions, areas that are so vital for a sustainable supply chain at every level. Lauren and the team at MEGATRANS are supporting the industry’s sustainable priorities by focusing the entire conference and expo on the long-term sustainable supply chain. Integral to MEGATRANS2024 is its standout conference, promising a rich experience for attendees with its diverse range of expert presenters. More than 150 industry leaders will grace the multiple, free-to-attend conference stages on the trade floor, offering insights and perspectives from various supply chain sectors. An exciting addition to the 2024 event is its collaboration with the Australian Bulk Handling Expo (BULK2024). This partnership provides attendees with a dual registration benefit, granting access to both game-changing shows. MEGATRANS will play host to the esteemed MHD Supply Chain Solutions Mercury Awards. This prestigious event seeks to

The show will similarly offer solutions for companies investing in traceability, as well as cold chain solutions.

honour businesses and individuals epitomising innovation, excellence, and leadership within the industry. The confluence of the exhibition, the conference, and the awards Gala dinner, scheduled for September 18, creates a synergistic platform. It’s a unique opportunity for logistics and supply chain professionals to converge, network, learn, and celebrate — all under one roof, at one defining moment. Additionally, there will be the

inaugural MHD Sustainable Warehouse Awards. This event will feature the most sustainable warehouses from across Australia and include the announcement of 2024’s MHD Most Sustainable Warehouse in Australia. MEGATRANS is held every two years, and this year it will run over two days – 18 and 19 September 2024 – at the Melbourne Convention and Exhibition Centre. It’s supported by distinguished sponsors, including the Networking Lounge Sponsor, Loscam, and Association Partners, SCLAA, and VTA. To be part of this transformative experience and align your brand with the future of logistics, explore exhibiting opportunities at MEGATRANS2024. ■ Learn more at www.megatrans.com.au MHD DECEMBER 2023 | 45

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MHD SUPPLY CHAIN

FINANCING SUPPLY CHAIN INVESTMENTS Cost restraints are a shared barrier for businesses looking to improve their supply chain. Russell Pruden, Director of Finance at Körber, tells MHD the financial strategies industry leaders are implementing to continue investing in the robustness and longevity of supply chains.

n November, newly appointed governor of the Reserve Bank of Australia, Michelle Bullock, announced the first interest rate hike since June this year. Intended to combat inflation, the news was unwelcome for many Australian businesses, which are already grappling with high input costs, emerging wage pressure and labour shortages, particularly in critical areas such as warehousing and logistics. Trade tensions and changing relationships with trade partners like China are impacting exports and imports, all while the dominance of e-commerce and online shopping increases the pressure on warehouse productivity and last-mile delivery services. Research from KPMG shows 67 per cent of organisations consider meeting customer expectations for speed of delivery is a critical force impacting the structure and flow of their supply chains over the next 12 to 18 months. Supply chain improvements come at a cost, often requiring significant capital expenditures for technology, equipment, infrastructure, and process changes. Russell Pruden, Director of Finance at Körber explains the current economic conditions make a thought-out business case for new supply chain investments crucial. “Decision makers need to justify the costs of supply chain investments and ensure a positive return on investment (ROI),” Russell says. “One of Körber’s differentiators is our ability to partner with our customers to ensure the investment makes financial sense, and we can also leverage our financing partners to assist in aligning financial payments with cost savings over time.

Russell Pruden, Director of Finance, Körber.

“Businesses are exploring options such as leasing or financing for new equipment and infrastructure, which may reduce upfront capital requirements and align costs with benefits over time. Körber work with financing partners to ensure that we can structure any financing requirements as competitively as possible.”

KEY INDICATORS FOR INVESTMENT To monitor the health of any business, Russell identifies five key metrics: 1. Inventory Turnover: How quickly inventory is sold and replaced within a specific period. 2. Days Sales of Inventory (DSI): The average number of days it takes to sell a product after it is acquired. 3. Cash-to-Cash Cycle Time: The time required to convert cash spent on inventory into cash received from sales. 4. Perfect Order Rate: The percentage of orders delivered with all items in the correct quantity, condition, and on time.

5. S upply Chain Cost as a Percentage of Revenue: The percentage of total revenue spent on supply chain operations. According to Russell, improving these critical metrics is fundamental to organisational and supply chain success, and requires a long-term strategic outlook. “Looking beyond the immediate wins and losses, organisations need to continuously improve supply chain processes to reduce costs, improve speed, and enhance overall efficiency,” he explains. “Businesses must build resilience to disruptions by diversifying suppliers, having contingency plans, and investing in risk management. Embracing digital transformation across your supply chain, leads to real-time insights, ultimately bettering supply chain decision-making.”

TURNING TO TECHNOLOGY Despite the rise of Industry 4.0 and the interconnectedness of technology systems, many organisations still rely on outdated legacy systems, including MHD DECEMBER 2023 | 47

MHD SUPPLY CHAIN

Körber recently launched its RaaS program in Australia, which provides simple access to a global network of robotics service partners.

paper-based filing and data collection. The old mentality of “if it ain’t broke, don’t fix it” still lingers across some workshop floors and warehouses, but was exposed over the COVID-pandemic, when most businesses realised investing in technology systems is a necessity, rather than a luxury. “Supply chain professionals are investing in advanced inventory management tools to optimise inventory levels, reduce carrying costs, and minimise stockouts or overstock situations,” adds Russell. “The investment in technology to enhance visibility, automate processes and improve decision-making can lead to further operational efficiencies and cost savings.” Cloud-based supply chain software such as order management, warehouse management and transport management systems, with pay-asyou-go pricing models have a low financial barrier to entry, eliminating the need for expensive, on-premises hardware and IT infrastructure. Software as a Service (SaaS) is being increasingly adopted to simplify key business functions and lower costs. “It is wise to leverage technology investments that have a high return on investment (ROI) and quick payback periods,” says Russell. “Businesses are increasingly implementing cloud-based solutions, which reduce the need for large, upfront 48 | MHD DECEMBER 2023

capital investments. Consolidating solutions such as Hardware, Software and Maintenance into one easy monthly fee reduces the administrative burden for businesses and improves ability to forecast cash flows, with no hidden costs.”

THE RISE OF ROBOTS Russell identifies Robots as a Service (RaaS) as a key strategy, which will help transform businesses heading into 2024 – mainly because of how quickly the financial outlay aligns with ROI. “If structured correctly, avoiding large assets on the balance sheet can have a positive impact on external requirements such as bank covenants and other financial constraints,” he says. “RaaS frees up CAPEX investment to OPEX and builds a business case where investment is amortised across agreed terms. Rather than a huge upfront investment, businesses will be able to manage predictable, monthly costs much easier.” Körber recently launched its RaaS program in Australia, which provides simple access to a global network of robotics service partners for every business size and industry. In the program, a monthly operating expense model makes the technology more accessible to a different range of businesses. In the lead-up and during peak periods, businesses can increase

the throughput of their orders by adding RaaS, and scale it back during quieter months. “Businesses are looking for solutions which meet spikes in demand and solve the challenges thrown up by e-commerce volumes,” notes Russell. “We want to help provide flexible robotics solutions, which provide customers a sense of scale and sustainability.”

JUSTIFYING THE COST OF SUSTAINABILITY Sustainability goals often require significant financial investments to achieve. However, when part of an overall solution, a little goes a long way, says Russell. “A simple idea of embracing technology to eliminate paper or using digital barcoding has immediate positive impacts on the environment, but is also beneficial to a business’s bottom line,” he adds. “Organisations should engage employees in sustainability efforts to identify cost-saving opportunities and suggest sustainable practices in their day-to-day activities. “With advancements in solar, battery, and other renewable energy sources, as well as warehouse technology, we should see the total cost of supply chain decrease over time, which is a win-win for both organisations and the environment.” ■

MHD INDUSTRY NEWS & OPINION

CONQUEST UNVEILS COMPACT INDUSTRIAL ELECTRIC SWEEPER WITH HEPA FILTRATION

Conquest FSR-7 is ideal for facility floor spaces spanning 5000 to 10,000 sqm.

ontinuing its foray as a cleaning equipment innovation leader in Australia, Conquest proudly introduces a new compact sweeper model, which debuted in November at the ISSA Cleaning & Hygiene Expo. The FSR-7 electric ride-on sweeper was displayed at the Melbourne Convention and Exhibition Centre. Corporate Account Development Manager Joel Pederick unveiled the latest innovation, sharing his excitement about the solution’s technology and features. “The FSR-7 is the next generation sweeper, pushing productivity to the maximum in industrial facilities,” says Joel. “It attracted a lot of attention at ISSA. Offering a three-stage vacuum system with HEPA filtration, advanced manoeuvrability and operator comfort, and clever features such as a vacuum wand for harder-to-reach areas.”

A BREATH OF FRESH AIR: ZERO EMISSIONS + ADVANCED HEPA FILTRATION Designed for the unique challenges of industrial and commercial sweeping,

the Conquest FSR-7 is ideal for facility floor spaces spanning 5000 to 10,000 sqm. Featuring 100 per cent electric operation with a three-stage HEPA filtration system, the FSR-7 is the single solution for a business’s Environmental, Health & Safety (EHS) requirements. “Even the finest dust is filtered, to maintain a safe and dust-free environment for anyone working in close proximity,” notes Joel. Key features of FSR-7: • 100 per cent electric operation: Embrace a cleaner, greener solution with the FSR-7’s 100 per cent electric operation, ensuring a zeroemission approach perfectly suited for environmentally conscious construction and masonry operations. • HEPA filtration for health and safety: Prioritise the well-being of your workforce with the FSR-7’s advanced HEPA filtration. This breakthrough technology not only cleans floors but purifies the air, filtering out even the smallest particles. • Tailored for industrial spaces: With an optimal cleaning range of 5000

to 10,000 sqm, the FSR-7 ensures thorough cleaning coverage for construction and masonry floor spaces of varying sizes. • Compact ride-on design: FSR-7’s compact ride-on design, allowing seamless navigation through construction sites and masonry spaces, reaching every corner with ease. • Unmatched power and efficiency: Operate at an impressive speed of 7 km/h with the capability to run continuously for up to seven hours on a single battery charge, thanks to advanced lithium batteries. • Consistent clean with intuitive force technology: The Intuitive Force technology ensures a uniform clean, even on uneven surfaces, maintaining cleanliness standards in diverse construction and masonry terrains. • Australian demonstration tour: Conquest is taking the FSR-7 compact sweeper on tour, demonstrating at industrial facilities in East-Australian capital cities from now until the New Year. MHD DECEMBER 2023 | 49

MHD INDUSTRY NEWS & OPINION

RARE TRANSPORT AND LOGISTICS SITE LEASED

olliers’ Stephen Ryan and Charlie Woodley with CBRE have leased a rare transport site on behalf of Greystar Australia, achieving a strong annual rental of more than $1.5 million. Greystar, well known for its buildto-rent development and management expertise, expanded its local and international platform in the last two years with the addition of a dedicated strategy focusing on industrial and logistics investments. The acquisition of the West Footscray property was its fifth investment on Australia’s eastern seaboard, and a project complementing its other acquisitions in Sydney and Brisbane. “The rare low coverage offering was particularly interesting to a business

in the transport and logistics sector,” says Colliers’ Associate Director, Stephen Ryan. “We identified prospective occupiers who saw value in the inner west location with proximity to the Port of Melbourne and were able to achieve a rental uplift of over 40 per cent on the existing areas compared to the previous lease that was in place at the time of Greystar’s acquisition.” Colliers notes the deal comprised a 2.1-hectare corner site on 36-38 Roberts Street, West Footscray, including a 7821 sqm building, which accounts for 38 per cent of the total site area, has been secured by Paddock to Port on a five-year lease with options until 2033.

“While leasing demands have subdued, we were confident that we would achieve a fantastic outcome for Greystar due to key fundamentals such as the property’s prime infill location and the ongoing supply constraints, which has resulted in a vacancy rate being sub 0.9 per cent accounting for a total of six buildings across the entire Melbourne West Industrial market, with even fewer ‘low-site coverage’ opportunities.” The warehouse is strategically positioned on the thoroughfare connecting Sunshine Road and Geelong Road, with easy access to all key destinations, including the Port of Melbourne, Melbourne CBD, and Melbourne International Airport.

The deal comprised a 2.1-hectare corner site on 36-38 Roberts Street, West Footscray.

50 | MHD DECEMBER 2023

HANGCHA IS RANKED AS THE 8TH LARGEST FORKLIFT COMPANY GLOBALLY

NEW ARRIVAL: LITHIUM 0.2T A SERIES STORAGE ASSIST VEHICLE We are happy to announce the launch of our new 0.2t A series lithium storage assist vehicle. This is a compact and flexible vehicle that is perfect for picking small goods in warehouses, hardware stores, supermarkets etc. The unit has a 100kg hydraulic powered picking table, and also 115kg capacity lower storage tray. The 24v/125ah lithium has fast and opportunity charging which greatly improves working efficiency. Safe & Reliable Even at great heights, the operator feels confident thanks to the all-around safety protection, such as automatic closing doors, right and left hand sensing, front and rear flashing lights, tilt switch sensor etc. All these will help ensure operators are in the correct position as they operate the equipment, resulting in fewer injury risks and less potential downtime.

With over 200 units in stock and a new spare parts division our dealer network can support all your needs.

Hangcha Forklifts Australia has been set up to support our national dealer network.

Call 1300 399 687 to be put through to your nearest local dealer. sales@hcforkliftau.com www.hcforkliftaustralia.com

Easy Maintenance The AC motor significantly reduces the maintenance costs and downtime. Maintenance free lithium batteries reduce downtime and provide greater life span than traditional wet cell or gel batteries.

Manufacturing forklifts since 1956

MHD SUPPLY CHAIN

ARGON & CO INCREASING GLOBAL FOOTPRINT Throughout 2023, Argon & Co has made numerous leaps and bounds – with mergers and acquisitions, and much more. MHD spoke to Stephan Mang, one of its ANZ Partners, to discuss what the company has achieved this year, and what its plans are for 2024.

rgon & Co has grown in various ways in the APAC region over the past 12 months. In 2023, its integrated intralogistics and sustainability service lines, had several mergers and acquisitions, and has achieved many milestones with aims to reach many more in 2024. Its ANZ branch of the business has grown from 60 to more than 140 people following its merger with Pollen Consulting in June 2022, and it now has two offices in New Zealand’s Auckland and Hamilton. Considerable growth has continued as the global management consulting firm has expanded its operations to Perth in WA where it has a small team of employees and has shifted from its South Yarra office in Melbourne to Flinders Lane in the CBD to cater to an influx of new recruits.

INTRODUCING NEW OFFERINGS WITH MERGERS Beyond the ANZ region, Argon & Co has expanded its presence in APAC by establishing a Hong Kong office, and concurrently, it has laid the foundation in Singapore. Stephan Mang, Partner at Argon & Co, says he, Paul Eastwood, David Bissett, and Colleen Grady, are heads of the company in Australia while Ian Walsh is in charge in New Zealand with the company acquiring three new partners in the past 12 months alone. “This year marked a significant milestone as we merged with Fuzzy LogX in Australia and Studio Logistic in New Zealand,” explains Stephan. 52 | MHD DECEMBER 2023

Mergers and acquisitions such as Fuzzy LogX, Studio Logistic, Pollen Group, and Intent Group have all shaped and changed Argon & Co ANZ.

“Both of these companies share similar expertise, specialising in intralogistics. This union enables us to extend these valuable services to our clients in the APAC region. These mergers have enriched our technical proficiency within the supply chain and logistics domain – a pivotal development. This is of paramount significance as the majority of our clients are keen to optimise their logistics costs and introduce automation into their warehousing operations. “The inclusion of the Fuzzy and Studio teams has significantly enhanced our depth of expertise. We have seamlessly integrated their strengths with our own logistics, operational, and supply chain capabilities, crafting a more

holistic approach. This ensures that we are well-equipped to meet our clients’ evolving needs and deliver tailored solutions.”

MAKING THE SUPPLY CHAIN GREEN At Argon & Co, conducting business in a socially responsible way is engrained in its DNA. It truly believes this is a driver for business success, and has continued to strive to make the planet, the external environment, and the community a better place. Argon & Co ANZ is a carbon negative consultancy and currently being certified as a B-Corp organisation, it values giving back to the community, and has taken the one per cent pledge, and as a team has supported charities such as Oz

MHD SUPPLY CHAIN Harvest, The Smith Family, Drought Angels, and Red Nose. “Sustainability is no longer just an option,” notes Stephan. “It’s a priority for companies wanting to thrive and change the world for the better. By integrating sustainability as a core element of our expertise, we’re able to provide services to our clients who are navigating the complexities related to sustainable practices. “We’re also helping them transform their operations. For example, we run diagnostics for them and look at issues using a sustainability lens. We apply this to when we’re optimising networks or when we do a materialbased improvement initiative decline. We see what impact it has from a sustainability viewpoint – it’s not all related to dollars and cents.” There are the lasting positive impacts these improvements and initiatives can have on the environment and society. The Argon & Co team endorses these practices, and in ANZ, each project is measured with a sustainability impact report to give them the baseline on how they’re performing in this space.

CONTINUING TO GROW Mergers and acquisitions such as Fuzzy LogX, Studio Logistic, Pollen Group, and Intent Group have all shaped and changed Argon & Co ANZ. With the acquisitions it’s made, the company has enabled itself to provide more end-to-end services to its clients. “We’ve also been able to integrate our experts and expertise resources. We’re more versatile, and we can bounce ideas off each other when we collaborate – making our team stronger. “We can offer a much broader business landscape when we combine supply chain planning or investment with logistics personnel. “By having vibrant exchanges of ideas and best practices, and creative thinking, we can develop innovative products. We have more internal initiatives in the pipeline, which we’ll launch in 2024. This can only happen because we have diverse talents and perspectives as we’ve accumulated intellectual capital via these mergers and acquisitions.” Argon’s FTE has grown to more than 140 and was placed number 20

last year in the Australian Financial Review’s “Fast 100” Fastest-Growing Australian Businesses and is on track to make the top 20 again this year.

CONNECTING EMPLOYEES AND SERVICING CLIENTS Argon & Co introduced its inaugural Graduate Program this year, achieving remarkable success by admitting an additional mid-year cohort and gearing up for two upcoming intakes in the next year in both Sydney and Melbourne. Argon & Co Australia also launched one of the businesses global initiatives: “Connect – Argon & Co’s Strategy & Transformation Community”. Connect is a supportive environment for business builders and transformation professionals, where meaningful connections are made, and members are inspired by thought-provoking stories and insight. Through joining Connect, business leaders gain access to the community’s digital platform where they can see upcoming events, latest articles, newsletters, and some tools and approaches to help them make strategic changes and run their transformation programs. Its Global Mobility program involves inviting Argon team members to go on exchange to its other worldwide offices on a project basis or on a sixmonth secondment.

“We’ve sent employees to our Dubai, London, and Paris offices and had employees from these countries come to ANZ,” explains Stephan. Plans for 2024 include expanding operations in Hong Kong and Singapore and possibly opening an office in Brisbane. “Our footprint is global,” Stephan adds. “We want to have a presence in every continent of the globe, and already have a network of extensive expertise and strong service lines in Europe and the US. We can also utilise that expertise and additional service lines to cross pollinate and exchange ideas. “Our global industry sector groups exchange the latest trends and initiatives. We’re always staying abreast of what’s happening in the market and are connected to our colleagues in Paris and in London where our headquarters are and cooperate with them in a 24-hour cycle when working on client projects. “We can provide that around-theclock service and meet our clients’ needs wherever they’re located. The facilities and offices we have in many parts of the world can also match their time zones. Together, we have immense industry experience and a thorough understanding of supply chain networks. I can confidently say that we’ve accomplished a lot this year and we’re excited as to what the new year may bring.” ■

Argon & Co’s ANZ branch of the business has grown from 60 to more than 140 people.

MHD DECEMBER 2023 | 53

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MHD MATERIAL HANDLING

TOYOTA FORKLIFTS ENHANCES SADLEIRS’ OPERATIONS One of the oldest family businesses in Australia, Sadleirs, tells MHD why it’s partnered with Toyota Material Handling Australia, and how the Japanese manufacturer’s forklifts are helping it improve its operations.

family-owned logistics and packaging company has further refined its supply chain logistics with the help of Toyota Material Handling Australia (TMHA) forklifts and technologies. Sadleirs Transport, headquartered in Perth, recently entered a partnership with TMHA for material handling equipment in its facilities across the country, renting a broad fleet of small and large Toyota counterbalance forklifts, reach trucks and pallet movers. After using competitor products for years, Sadleirs took delivery of its new fleet of Toyota forklifts and immediately began to notice the benefits of Toyota’s technology, comfort and ergonomics.

CREATING VISIBILITY WITH TOYOTA’S I-SITE Perth-based Sadleirs Transport terminal manager Brod Walton has been impressed with the new TMHA products, which have helped increase operational efficiencies since taking delivery in May. Brod was particularly fond of Toyota’s I-Site fleet telematics system, which streamlines warehouse processes for the business, helping to minimise unwanted incidents. “It was a pretty good call to transition to Toyota from an operator perspective but also from my perspective with being able to manage through the I-Site program, there’s a lot more visibility with driver performance and machine performance too,” Brod says. “It’s not only about keeping an eye on the negative things, but

Perth-based Sadleirs Transport terminal manager Brod Walton has been impressed with the new TMHA products. the positives as well. A lot of the utilisation and operating times out of individuals who I would have never thought would be our top performers, they’re getting highlighted, which is great because you can give them positive feedback and not just ask for improvement. “It’s about recognising some of the positive performances as well, so it’s been really good from my point of view to have that visibility.” Brod adds that the Toyota I-Site system provided holistic benefits to the business and its warehouse operations while also closely monitoring the status of the equipment. “The overall visibility is unreal, being able to pull reports off I-Site, managing user profiles, getting alerts with one month to go before the expiry of a high-risk licence, it just enables us to have those conversations with the operators,” explains Brod. “Overall visibility is something that I haven’t had before. The ability for us to identify impact alerts straight

away, locking it in limp mode, having the supervisor unlock code, it helps identify things like failed pre-starts or pre-starts not being done and impacts as well, so it keeps the guys on their toes to report any little incident they have where in the past they may be able to get away with those sort of things because we’re a large site and we can’t be everywhere at any time.”

REDUCING EMISSIONS WHILE INCREASING EFFICIENCIES Having used other competitor brands for years, Sadleirs warehouse operators have been impressed with the ergonomics and comfort of the Toyota forklifts, which help improve the working experience for those who spend long hours on the machine’s day in, day out. Brod says the new Toyota forklifts have been warmly received by the operators. “It’s pretty funny – we had a couple of trial (Toyota forklifts) come through about a year ago that we were using MHD DECEMBER 2023 | 55

MHD MATERIAL HANDLING just to get used to while we still had the old fleet and not many people wanted to get on them,” notes Brod. “And then when we transitioned to having our new fleet of Toyota forklifts, we actually had a couple of the old forklifts hanging around and the opposite happened – nobody wanted to get onto the old forklifts because they got so comfortable with the new Toyota machines. The ergonomics of the machines are a big standout for them. “These machines, some of them can be going non-stop for 10-12 hours each day, the guys are on them all day long outside their breaks. We need a reliable machine that can just keep going. These are also much more fuel-efficient, and the emissions are a lot lower.” During the tender process and since starting the tender, Sadleirs has formed a strong working relationship with TMHA corporate accounts manager Jason Fennell and Perth representative Tony Walther who have helped provide an easy onboarding and servicing experience for the company. “When we did the handover Jason spent a lot of time here, he personally came and did the induction and training with the operators, spending full days on site and making sure the guys were familiar with the new features of the machines which they wouldn’t be used to,” Brod says. Due to their high usage rates, the fleet of Toyota machines has already undergone scheduled maintenance, which Brod says was made simple by the Toyota team, while on-the-spot fixes are also simple to organise.

Sadleirs is one of the oldest family businesses in Australia, having been founded in WA in 1829.

56 | MHD DECEMBER 2023

Sadleirs warehouse operators have been impressed with the ergonomics and comfort of the Toyota forklifts.

“

The Toyota I-Site system provided holistic benefits to the business and its warehouse operations while also closely monitoring the status of the equipment.

”

“The good thing is they’re really quick (to respond to callouts) – they’re usually on site the next day when I submit a request,” he adds. “In August we went through and had the servicing done on the whole fleet, and that was organised by Eliza at Toyota, and that was pretty seamless getting through that as well.”

SUPPORTING ONE OF THE OLDEST IN AUSTRALIA Sadleirs added that the overall experience provided by TMHA has so far been, “incredibly positive and always very professional” – a sentiment echoed by Mr Fennell and his team, who hope to enjoy a long and prosperous working relationship. Sadleirs is one of the oldest family businesses in Australia having been founded in WA all the way back in 1829 by Lionel and William Samson as a general import/export business with a focus on alcohol, and by the 1880s became the largest importer of beer and spirits into Australia. In the late 1800s, RC Sadleir was established by John Sadleir as a customs and shipping operation and was registered as a company in 1923 before being acquired in 1936 by Lionel Samson whose business had grown substantially thanks to its involvement in the Western Australian gold rush. 2012 marked a merger between Sadleirs and Lionel Samson and Son to become the Lionel Samson Sadleirs Group, making it the oldest family-owned business in Western Australia and the second oldest in the entire country. ■

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MHD INDUSTRIAL PROPERTY

NEPEAN BUSINESS PARK PROVIDING SUPPLY CBRE agents John Micallef and Matthew Alessi along with Macquarie Commercial’s Luke Belotti have been managing the launch of the new multibillion-dollar Nepean Business Park in Sydney’s Penrith. They reveal to MHD how this long-term development is providing much-needed supply to industrial and logistics enterprises.

s demand for industrial assets from buyers, tenants, and investors remains high, supply continues to remain at an all-time low as vacancy rates in Sydney’s South and West have decreased to a global record of 0.2 per cent. This is why one of the largest smalllot industrial subdivisions in Western Sydney will generate up to $2 billion in economic activity and is set to alleviate the pressure and stress as it’s gradually being launched over the next three to five years. Nepean Business Park will occupy a 49-hectare former quarry site near the Sydney International Regatta Centre. Australian-owned private family investment office Precinct Capital appointed CBRE’s John Micallef and Matthew Alessi together with Macquarie Commercial’s Luke Belotti to manage Stage 1 of the launch. The estate will consist of 93 small to medium lots ranging in size from 2007 sqm upwards, which are expected to gain considerable interest from owneroccupiers as they search for premises to purchase. Other amenities in the Park will include open spaces, public art, pedestrian and cycle links, and a community hub.

CATERING TO BUSINESSES OF ALL SIZES With an increased volume of industrial stock on the market, John, Matthew, and Luke hope that this will alleviate the pressure in Western Sydney. One of the benefits of this gigantic site, is it 58 | MHD DECEMBER 2023

Nepean Business Park is a 49-hectare site comprising small-lot industrial subdivisions providing $2 billion in economic output.

will generate many jobs for locals and stimulate the area’s economy. “Nepean Business Park will offer lots that cater for small and medium businesses,” says John Micallef, Director at CBRE. “This market is severely undersupplied, and we have not seen any substantial new stock for an extended period. “This has led to large rental increases and occupiers struggling to find premises. We have an influx of small businesses looking to own their own premises, which Nepean Business Park will cater to, and we also expect strong engagement from investors given the market’s strong underlying fundamentals.” “Nepean Business Park is exactly what Western Sydney needs,” explains

Luke Belotti, Director at Macquarie Commercial. “There’s simply been ongoing demand and little to no supply.” Matthew Alessi, Manager at CBRE, adds that the project is unique, and the site will cater for small-to-medium businesses (SMEs), not just large enterprises. “The zone is flexible,” continues Matthew. “It will accommodate not only industrial owner-occupiers, but other uses are allowable including community facilities and offices. The affordable pricing also makes it an attractive offer. On top of this, it’s close to major motorways and core locations like Eastern Creek, Wetherill Park, and Prestons.” The site will consist of various-

MHD INDUSTRIAL PROPERTY proportioned allotments and strata developments to cater to businesses of all shapes and sizes, from sole traders to larger enterprises needing corporate headquarters. Stage 1 has just launched with lots ready to build on from Q4 2024. Construction costs will be kept low due to the way the developers have built the business park. Individual lots will be sold serviced and benched and do not require onsite detention basins due to a centralised stormwater system, while the development will also feature a centralised fire hydrant booster system and fire sprinkler tanks and pumps. The lots also have access to ample incoming power.

CONNECTING THE OUTER WEST Most of the lots already have CDC building approvals. “Once a buyer has settled on a lot, they can build immediately,” notes Matthew. “This will allow them to save both time and money.” Luke says these premium subdivision lots will benefit from other highquality infrastructure which will be provided by the developer, proving these aren’t your run-of-the-mill industrial developments. “Penrith will benefit enormously from the Western Sydney Airport, which is due to open in 2026. Recent upgrades and extensions to the road network and the new metro which will connect Penrith with the airport will greatly improve access to and from the area “This will make it more accessible. The general population in this area warrants a park of this quality and size. It will allow businesses and employees to work closer to home. It’ll also help

Matthew Alessi, Manager at CBRE.

John Micallef, Director at CBRE.

build the local economy, and this will feed back to the businesses.” The long-term goal is to connect the new Western Sydney Airport to the M7 to make it easier for anyone travelling between North West and South West Sydney, including Penrith. Buyers can start securing the lots now and begin building on them as soon as November 2024.

MAKING INVESTMENTS MORE AFFORDABLE With the Nepean Business Park’s many subdivided allotments becoming available soon, an increase in supply will be possible to meet the ever-rising demand from prospective owneroccupiers and tenants. “The business park will cater for businesses of all sizes and requirements which will ensure the market demand for industrial property will be met,” explains Luke. “This in turn should result in a stabilisation of rental rates. The developers have met the market with price, and with the construction

cost savings already built into the development, investors should be able to achieve a great return on investment. “This is a long-term project and development. There’s going to be multiple stages coming on the market over the years – it’s not going to be achieved in one go. The developers want to keep the quality high and gradually release it to market.” Both Luke and Matthew say the response to the launch has been “brilliant” and “far exceeds” what they were expecting – showing there’s a huge demand for these smaller allotments. “We’ve only brought a small portion to market so far,” adds Luke. “This development will feed the market for the next three to five years. With the airport opening in a couple of years’ time, there should be all the necessary services and demand to support this new precinct. “There are still some subdivisions available in the South West corridor like Marsden Park, Oran Park, and Gregory Hills, but none of these can compete with the scale of Nepean Business Park.” Luke adds that industrial and logistics sites are organically pushing further west because there’s a lack of stock closer to Sydney’s CBD and to the M4 and M7. “Leasing and selling rates reflect this, too,” explains Matt. “Going back to your core locations, rentals are now almost $300 a square metre in some cases. “Penrith is still affordable with rents at $200 a square metre and selling rates far less than what the core locations are seeking and demanding, so it makes it more appealing to the market.” ■ MHD DECEMBER 2023 | 59

MHD SUPPLY CHAIN

KEEPING TABS ON TRUCKS Geotab provides tracking and insights on fleets and key personnel for its customers. To uncover more about this impressive technology, MHD sat down with Geotab’s Associate Vice President of Sales, David Brown.

ith more than 20 years of experience delivering connected transportation solutions to more than 47,000 customers, Geotab provides leading data research and innovation to support supply chains globally with its systems capable of revolutionising fleet management. Geotab is plugged directly into a truck’s OBD port, allowing the user to extract a multitude of information and parameters directly related to that truck and its operator. Tracking and assessing data in real time enables fleet managers to pre-empt issues and ensure drivers are operating within safe working limits. “We can track whether a drive is wearing their seatbelt, any warnings on the dashboard, and fuel efficiency all in real time,” says David. “Electronic work diaries can be incorporated into the system, it can notify the driver of required breaks, ensuring they are meeting state and

national requirements. “Geotab is scalable as well, so whatever parameters an organisation is looking to track, we can incorporate that into the program.” Geotab can track tyre pressure and other similar components even in some of the most remote parts of Australia, providing an added layer of safety to drivers in high-risk environments. The live tracking can also be beneficial to clients if they are waiting for an important delivery, or something is time-sensitive because it can help alleviate their concerns.

INCORPORATING GEOTAB Users can find customised solutions on the Geotab Marketplace, such as in-vehicle cameras, real-time temperature tracking and tyre pressure monitoring, as well as innovative mobile apps, third-party integrations, business services, and more. The Geotab Marketplace has more

than 200 partners that can provide solutions, working in a similar way to the Google Play or App stores, to enhance the user experience. “The system is designed to be constantly evolving to meet the needs of any supply chain partner,” explains David. “Companies are consistently evolving now, and we know we need to keep up to meet their needs, and this is a hallmark of the Geotab system.” A system that’s often incorporated into the Geotab system is the ability to access the dashcam, which can view through the front windscreen and back into the cab. “The dashcam can be viewed immediately, in the case of an accident we can access it to simplify the whole process,” adds David. “It also gives organisations the ability to track fatigue and distracted driving. They can all be sent back to managers, giving added protection and accountability.

The Geotab system can work with the NHVR work diary.

60 | MHD DECEMBER 2023

MHD SUPPLY CHAIN

David Brown, Associate Vice President of Sales, Geotab.

Geotab is plugged directly into a truck’s OBD port.

“On the marketplace system as well, you can access tyre monitoring, track a slow leak before it becomes a problem, and better protect operators.” The National Driver Work Diary from NHVR is evidence of a driver’s work and rest hours. Operators of fatigue-regulated heavy vehicles aren’t allowed to drive or work more than the maximum work hours, or rest less than the minimum rest hours in a certain period set out by law. The Geotab system can work in with the NHVR work diary, fully automating the process to minimise driver errors and ensure all requirements are being met.

pre-plan for vehicle down time, keeping fleets moving for longer.” The visibility extends to some of the more remote parts of Australia, adding an extra layer of protection to operators as well as greater planning capabilities. “When the user is in cellular range it can feed back simply, and when it becomes more remote, it can use Iridium satellites to see and locate those vehicles,” says David. “The Geotab GO90 can actually monitor driver behaviour from how harsh the vehicle is being driven demonstrating how much fuel is being used. “If a driver is driving a vehicle too vigorously, the fleet manager can recognise that and correct the driver behaviour.” The system can track if a vehicle is idling. It can also give greater understanding around fuel consumption and can help to correct behaviour that is detrimental to the vehicles. This can even improve buying patterns. If a truck uses less fuel when idling, and a driver knows a vehicle is regularly idling, they can adjust the purchase to meet that need. “What we want to be able to do for our customers is give them the power of choice, but also look at doing it in a cost-effective manner,” explains David. “Regulations are costly, and this is why if a customer wants the process to be cheaper, they need to be compliant. ■

SIMPLIFYING INSTALLATION The GO fleet management device plugs directly into the vehicle’s standard diagnostic port – the OBD II. It can be used as a vehicle or truck tracking device, with adaptors available for heavy vehicles when setting up a truck tracking system or other vehicle types if needed. No antenna, wiring or special tools are required for a standard connection. “We try to make the Geotab installation as simple and painless as possible,” says David. “It can take 45 minutes to an hour maximum, which we find is much quicker than many other systems out there. “By having a simple installation process as well, it helps lower costs. We know companies are not looking to add too many extra costs, so we have ensured we keep our costs low.”

“

Geotab can track tyre pressure and other similar components even in some of the most remote parts of Australia.

”

UNCOVERING VEHICLE ISSUES David reveals that the time for a driver to notify the workshop manager of a warning light on the dashboard can be up to a fortnight. “In those two weeks it can take for a driver to notify their manager of an issue, it might create even greater headaches when it comes to the repairs,” he adds. “The fact you can get this real time diagnostic data to key stakeholders will ensure that fleet managers can decide if an issue is a high priority. Also having that ability to recognise issues early allows managers to

MHD DECEMBER 2023 | 61

MHD SUPPLY CHAIN

NAVIGATING THE MAZE OF RETURNS: BEYOND THE BASICS OF PROCESSING MHD takes a seat with Nishan Wijemanne and Rizan Mawzoon, Shiperoo’s co-founders, for an in-depth conversation. As the retail industry gears up for peak season, we delve into their insights and anticipations, aiming to shed light on what lies ahead for both consumers and businesses.

Shiperoo co-founders, Nishan Wijemanne and Rizan Mawzoon.

he retail landscape is experiencing a paradigm shift, primarily driven by the e-commerce boom and evolving consumer expectations. This shift has brought to the forefront the intricate and often underestimated realm of returns management. Shiperoo, an innovator in this space, is steering a revolution in returns and fulfilment processes with stateof-the-art automation technology, pioneering software and a customercentric approach. MHD: How do you perceive the escalating challenge of retail returns during this upcoming peak season? Nish: With the surge in e-commerce, we’re seeing not only a higher volume of returns

62 | MHD DECEMBER 2023

but also increased complexity in managing them. Recent forecasts by the Australian Retailers Association (ARA) project Australians to spend an astounding $66.8 billion in the upcoming peak season. Consumers are becoming more budget-conscious due to factors like rising inflation and interest rates. This, combined with their tendency to leverage early sales, suggests we might see a higher rate of returns post-peak season, especially after February 2024. This trend imposes a substantial financial burden on online retailers, who must navigate the cost of returns while ensuring customer satisfaction and operational efficiency. MHD: Can you give us an in-depth

understanding of the complexity of returns in the e-commerce sector and how they impact the overall customer experience? Riz: Returns, often regarded as a major challenge in e-commerce, are much more than a logistical hurdle. They present a unique opportunity to enhance the customer experience. Every return is not merely a lost sale but a window into consumer behaviour and preferences. The traditional approach of ‘process and forget,’ as employed by many third-party logistics (3PL) providers, is no longer sufficient in the rapidly evolving retail landscape. A comprehensive approach to managing returns is essential for ensuring customer satisfaction and operational efficiency. During our initial discussions with various retailers in Australia, Europe, and the US, we noticed that their returns strategies were often vaguely defined from a supply chain management perspective. Historically, returns management hasn’t been seen as an opportunity, which is a mindset we’re eager to change. By re-evaluating and optimising the returns process, retailers can gain valuable insights and improve their overall service. MHD: How is Shiperoo’s software a game-changer in end-to-end returns management service?

MHD SUPPLY CHAIN Riz: Shiperoo’s proprietary software stands at the forefront of our innovative strategy, offering a game-changing approach to returns management. It’s designed to provide retailers with comprehensive visibility and advanced planning capabilities, leveraging the power of AI. This software goes beyond mere logistical management; it’s a strategic asset that revolutionises the entire fulfilment journey. By automating crucial tasks such as picking, packing, and processing returns — encompassing receipt, order validation, and quality assessment — the software doesn’t just execute operations; it also delivers valuable insights to retailers. This includes actionable data on returned items, which is vital for both recovering lost revenue and enhancing future planning. Moreover, Shiperoo’s software significantly reduces errors while boosting speed and precision in handling returns. It facilitates rapid categorisation and quality assessment of returned items, enabling efficient decisions regarding restocking, refurbishing, or recycling. This not only improves inventory management but also minimises the risk of stock imbalances, ultimately contributing to a more streamlined and effective returns process. While technology is a cornerstone of Shiperoo’s approach, the human element remains pivotal. Each return is treated as a unique case, with decisions made on whether a product should be restocked, refurbished, or recycled. This approach ensures maximum value recovery from returned items, turning a potential loss into a strategic advantage. MHD: How does Shiperoo plan to maximise efficiency in returns management during peak retail periods? Riz: The efficiency of returns management is crucial, especially during peak retail periods such as Christmas and Boxing Day. As we anticipate a significant influx of returns post-February next year, largely due to extended return periods offered by most retailers, preparation for handling high volumes of returns becomes paramount. Leveraging our extensive experience

in supply chain workflow optimisation and decades of expertise in process optimisation through automated workflows, we have developed a system that seamlessly integrates with robotics for handling returns. This system includes softwareenabled machine vision technology and is complemented by the skilled tasks performed by our team throughout the journey of returned items. Our approach to designing and implementing a smooth returns management strategy for these peak seasons is centred on efficiency and speed. Thanks to our software, setting up a bespoke returns workflow is quick and straightforward, typically taking less than a week after an initial discovery meeting. This efficiency not only streamlines the returns process for retailers but also builds trust with customers through transparency and reliability, ensuring a positive experience even in the busiest retail periods. Moreover, communication plays a vital role in managing returns effectively. At Shiperoo, we emphasise the importance of regular updates and detailed reports to foster trust and transparency with our clients. Understanding the ‘why’ behind returns is just as crucial as understanding the ‘how.’ By providing retailers with insights into the reasons behind returns, we empower them to make improvements in product quality and customer service policies. This approach not only streamlines the returns process but also contributes to a better overall customer experience and product offering. A pivotal aspect of our approach is our strategic choice of urban locations for our facilities. This isn’t just a matter of convenience; it’s a strategic decision that boosts logistical efficiency. This is crucial in facilitating the quick processing of returns and the timely dispatch of orders and ensures that retailers can keep up with customer demands but also exceed them, offering a level of service that’s swift. MHD: In the context of recovering lost revenue, how significant is the role of a strategic returns management approach for retailers? Nish: The importance of a strategic

Shiperoo’s proprietary software stands at the forefront of its innovative strategy. returns management strategy for retailers, particularly in recovering lost revenue, cannot be overstated. At Shiperoo, our software is engineered to be more than just a hub for managing returns. It’s a strategic instrument, designed to extract and leverage valuable data. This capability allows retailers to identify trends, refine their operations, and even anticipate future returns. Our technology is particularly capable of enabling retailers to rapidly resell products right at the point of inbound quality check. This turns what used to be a daunting volume of returns into a series of valuable data points, crucial for enhancing efficiency. MHD: Sustainability is increasingly becoming a priority in the business world. How does Shiperoo incorporate sustainability into its operations, and what impact do you think this has on shaping consumer expectations for the new generation? Riz: Sustainability is not just an added feature at Shiperoo; it’s a core pillar of our operations. Our steadfast commitment to minimising waste and actively promoting recycling practices is a testament to our alignment with global environmental responsibilities. By focusing on sustainable practices, particularly in the area of returns management, we are not only fulfilling our duty towards the environment but also shaping a more responsible and environmentally conscious retail industry. In a retail world brimming with challenges and opportunities, Shiperoo stands out as a leader in transforming returns management. As the industry gears up for high spending forecasts, Shiperoo’s solutions offer a pathway to resilience and growth, ensuring a smooth and efficient handling of returns during the busiest shopping seasons. ■ MHD DECEMBER 2023 | 63

MHD SCLAA

ASCLA RETURNS TO SYDNEY FOR 2023 CELEBRATION The Supply Chain & Logistics Association of Australia held its 2023 Australian Supply Chain and Logistics Awards at Sydney’s The Fullerton, where guests enjoyed a gala dinner, inspiring speeches, and select nominees were recognised and awarded for their innovations and contributions to industry.

The 2023 ASCLA were held at The Fullerton in Sydney.

n Friday November 10 the Supply Chain & Logistics Association of Australia (SCLAA) held its annual Australian Supply Chain & Logistics Awards (ASCLA) at The Fullerton in Sydney and it was first time it had been in the harbour city since 2019. A total of 470 guests attended the event, which started with a Welcome to Country by Aunty Donna Ingram. MC for the night was entertainer and 64 | MHD DECEMBER 2023

comedian, Sam McCool, while the guest speaker was Australia Post CEO Paul Graham. In Sue Tomic, Board Chair of the SCLAA’s opening speech, she touched on the importance of connection, collaboration, innovation, human capital, and disruption being the new normal. List of the ASCLA 2023 Winners: • A utomation, Robotics or Emerging

Technology – AutoStore • B ig Data, IT & Business Intelligence – Bestrane • E nvironmental Excellence – CEVA Logistics • Future Leader – Jess Sargent • I ndustry Excellence – Yiau Hwei Chan • I nternational Supply Chain – Bondi Sands • Start-Up – Provenio.AI • S upply Chain Management –

MHD SCLAA – Australian Institute of Business (AIB)

Sam McCool, comedian and entertainer, was MC for the night.

Koala Living • T raining, Education & Development – ITLS University of Sydney Business School • Judges’ Choice – Healthy Heads Trucks and Sheds

• • •

List of Highly Commended: • Automation, Robotics or Emerging Technology – Adiona Tech • Big Data, IT & Business Intelligence – B dynamic Logistics • Environmental Excellence – All

• • •

Purpose Transport, Cario with Swinburne University F uture Leader – Rayleen Woods and Paul Antoniadis I ndustry Excellence – Bruce Drayton and Dean Neville I nternational Supply Chain – ThreeSixty Supply Chain Group S tart-Up – Xpress Freight Management S upply Chain Management – Myer and Ligentia T raining, Education & Development

ASCLA Events Committee Chair NSW State Director, Cathy Anne Jones, presented the closing speech. During 2023, the SCLAA held 56 events nationally, attended by more than 2600 registrants. It says this was an increase of 30 per cent on the previous year. SCLAA has new initiatives planned for 2024, including an expanded mentoring program, specialised events for different industry sectors and professional development programs for career progression. Additionally, it notes that it’s forging relationships ddressing industry’s most urgent issues. Its partnership with the Institute of Transport & Logistics Studies (ITLS) at the University of Sydney, and jointly created and delivered multicredential courses for senior and executive managers during 2023 have assisted with understanding the rapid technological changes that industry can leverage. It says it will continue to work closely with TAFE NSW in highlighting skills shortages in the industry and bringing industry and TAFE together. ■

Winner of the Judges’ Choice Award, Healthy Heads Trucks and Sheds.

MHD DECEMBER 2023 | 65

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From mining companies looking to upgrade their portable generators, to waste treatment centres looking to hire a fleet of forklifts, MHD Marketplace will be the one-stopshop for equipment to support supply chains across Australia.

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MHD ASCI

DON’T MISS OUT ON THE ASCI 2024 INSTRUCTOR-LED COURSE The ASCI Continued Professional Development portfolio offers professional learning that enables registrants to maintain their Practitioner or Associate Registration. Enrolling in the instructor-led course is an investment in your career.

E G, & T.

ct au 64

to rs, ng HD port ia.

he Australian Supply Chain Institute (ASCI) has announced its 2024 Instructor-Led Course Schedule. If you are looking to take your career to the next level in the field of supply chain management, this is the perfect opportunity for you to plan and stay ahead of the curve. ASCI’s comprehensive course includes the latest industry trends and techniques taught by experienced instructors with years of practical experience. You will learn to apply the latest

technologies and methodologies to your business, optimise your operations, and improve your overall supply chain performance. Enrolling in the instructor-led course is an investment in your career and will help you move up the career ladder. Helping you gain valuable skills and knowledge that will differentiate you from your peers and make you more competitive in the job market. ASCI also offers free student membership with full ASCI member discounts. The course is also designed

to give students a competitive edge and help them land their dream jobs faster. Don’t miss this opportunity to improve your skills and advance your career. Enrol in the 2024 instructor-led course and take the first step towards a more prosperous, fulfilling career in supply chain management. ■

MHD DECEMBER 2023 | 67

MHD ASCI

TOOLS TO ENHANCE OPERATIONAL PLANNING SKILLS ASCI has fostered professional learning on a global scale since 1964, focusing on best practice supply chain management.

oin the Australian Supply Chain Institute’s (ASCI) upcoming Sales & Operations Planning two-day course to enhance your operational planning skills, taking place on from February 6 to 7 2024. This workshop is designed for practitioners who want to understand the Sales and Operations Planning (S&OP)/Integrated Business Planning (IBP) methodology and how it relates to operational planning and control processes, as well as higher-level planning processes.

During this course, you will learn how to guide your company to lower inventories and shorter lead times with higher customer service levels through a better S&OP process. You will also learn how to use a cross-functional S&OP/ IBP process to improve customer service, inventory, and profits, overall company communication on plans, product portfolio management improvement, product and business rationalisation, and inventory reduction.

Classes are conducted daily, from 9 am to 5 pm Sydney Time, totalling 16 training hours. Participants can either join the training at Burrinja Cultural Centre or via Zoom. ASCI members can register for $1950, while non-members can register for $2350. ■

This workshop is designed for practitioners who want to understand S&OP and IBP.

68 | MHD DECEMBER 2023

MHD PEOPLE ON THE MOVE

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

SOCCER STAR JOINS AS KÖRBER ACCOUNT MANAGER After a thrilling five-year journey as a semi-pro soccer player in Europe, with Italy and Spain as his main stages, Edward Cerantonio has transitioned in the dynamic world of automotive sales at Audi. Over six years, he climbed the ranks to become an assistant sales manager. Postpandemic, he sought a new challenge, embracing the world of SaaS, making a significant impact as an account manager and later an account executive. Now, he’s excited to embark on a fresh adventure in the supply chain industry, as Account Manager for Körber Supply Chain. As his professional journey continues to evolve, he’s eager for what lies ahead.

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

69 | MHD DECEMBER 2023

MHD PRODUCT SHOWCASE

HUBTEX SECOND GEN FLUX 30

PROJECT44 OCEAN VISIBILITY

HUBTEX’s FluX Electric Multidirectional Counterbalance Forklift Truck has had some significant and innovative updates. The latest generation has load capacities of up to three tonnes. It has a new central driver’s position, which provides a higher-up all-round visibility compared to its predecessor. Additionally, the patented 360° HX steering has been added to the compact three-wheel running gear for the first time, ensuring smooth changes in direction from longitudinal to transverse travel. It handles both pallet and long-load transport in a single vehicle. This hybrid used as a front and sideloader makes the new 3T FluX 30, suitable for a wide range of sectors, from the timber and metalworking industries, through to the building materials trade.

Poor ocean visibility puts a strain on global supply chains, logistics costs, and customer service. At the root of the issue is low-quality data that hinders personnel productivity, streamlined operations, and proactive exception management. Today, more than ever, shippers and 3PLs need global ocean visibility with the data quality, intelligence, ETAs, and proactive exception management that ensures efficient, costeffective, reliable, and sustainable global transportation. Project44’s Ocean Visibility solutions is here to help, with a suite of solutions that uses first-in-class data and analytics to improve personnel productivity, allow for proactive exception management, reduce logistics costs, improve customer service, and empower users for agile transport planning and procurement.

For more information visit www.hubtex.com.au

For more information visit www.project44.com

AUTOSTORE GRID AND VENDING MACHINE

IFM’S TRACK AND TRACE GATE

Global cube storage company AutoStore introduces its latest capability, the Grid and Vending Machine solution, designed to simplify warehousing automation. The ConveyorPort is a workstation in its simplest form, where Bins are dropped on a conveyor and transferred to an opening outside of the Grid. Smart covering and sensors ensure operator safety. The CarouselPort is designed to work with the operator, in harmony with Robots to ensure the next Bin is always ready. The workstation operates with three rotating arms, each holding one Bin tray. The Vending Machine solution includes various Robots and chargers, as well as a dummy display unit, and a grid structure with 60 Bins.

ifm Track and Trace Gate is the complete solution for your automated and transparent logistics in your incoming and outgoing goods processes. By directly transferring all goods flows to the IT level, you can organise the inter-locking of production, inventory, and suppliers more efficiently than ever before. For more information visit www.ifm.com/au/en

For more information visit www.autostoresystem.com

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MHD SUPPLY CHAIN SOLUTIONS DECEMBER 2023

UNLOCK EVERY INCH OF YOUR STORAGE SPACE! 50%

GAIN UP TO MORE STORAGE WITH AISLE MASTER Aisle Master articulated forklifts are designed specifically for warehouses that require ease of movement through very narrow aisles. With the ability to operate in very narrow aisles in the warehouse, as narrow as 1.6m, the Aisle Master maximises storage capacity, dramatically increase your storage capacity by up to 50%.

To find out how Aisle Master can help you unlock every inch of your storage space.

aisle-master.com MHD OBC A4 AM Chris.indd 1

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