Supply Chain Digital September2014 by Supply Chain Digital

w w w. s u p p l yc h ai n d ig i t al . c o m

S e p t e m b e r 2014

TOPw1a0y

Rail Companies

Maersk Line

Outlining the attractiveness of sea freight

AMAZON’S FRESH CHALLENGE

Jeff Bezos’ revolutionary distribution network

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EDITOR’S COMMENT

September’s big hitters to know we have compiled a smashing issue for you this month. Our standout feature and cover story is a Q&A with Maersk Line’s UK and Ireland Managing Director, Brain Godsafe, where he outlines the attractiveness of sea freight and how Maersk Line continues to lead the industry through innovation. Next is an interesting piece that delves into the world of Amazon, and how billionaire entrepreneur Jeff Bezos, the owner and founder of the company, aims to revolutionise its distribution network. We also profile the cargo scanning operations at the Port of Felixstowe, and have a contributed piece from Bruce Horan at PHH Arval on what is making waves in fleet management. Then for this month’s top 10, we take a look at the biggest rail companies, taking into account market value, track miles, sales and employee numbers connecting the supply chain all over the world. Enjoy the read. YOU WILL BE PLE AS E D

Sam Jermy sam.jermy@wdmgroup.com 3

CONTENTS

Features 30 Technology Cargo Scanning and Non-Intrusive Inspection

TOP 10 Rail Companies

Logistics Outlining the attractiveness of sea freight with Maersk Line

Supply Chain Management

Procurement

Harness the Power of Telematics to Help Improve Your Business

How Jeff Bezos is aiming to revolutionise Amazonâ&#x20AC;&#x2122;s distribution network

36 5

CONTENTS

48 CISCO COMPANY PROFILES We feature some the best European companies that the Supply Chain industry has to offer - look out for Cisco on page 48

EUROPE

CANADA

48 CISCO

110 Halterm Limited

60 Amsterdam Airport Schiphol Cargo

USA

70 HP PPS Logistics EMEA

118 Videojet Technologies Inc.

MIDDLE EAST

AUSTRALIA

84 SKA International

124 Transcity - Legacy Way

AMERICA LATINA

136 John Holland Rail

98 Association: ANETRA 104 Association: CEDOL

September 2014

70 HP PPS

Logistics EMEA

104 CEDOL

Amsterdam Airport Schiphol Cargo

ANETRA

SKA International

110

Halterm Limited

118

Videojet Technologies Inc.

LOGISTICS

September 2014

Outlining the attractiveness of sea freight with Maersk Line W R I T T E N B Y: S A M J E R M Y

LOGISTICS

We put some questions to Brian Godsafe, Managing Director for Maersk Line UK and Ireland to get an insight into the inner workings of the world’s premier container shippers SCD: Hello Brian. Firstly, as an organisation with a long, illustrious history as an overseas cargo carrier, how do you remain at the forefront of the industry? BG: Innovation plays a major role in keeping us at the forefront of the industry. Whether that’s introducing the Triple Es, the largest container ships in the world, or optimising our network to ensure that we derive maximum efficiency from all our vessels and their routes, innovation means that we stay ahead of the competition. SCD: Can you explain why sea freight seems to remain the favourable choice over air freight? Is it because the airlines bill customers by a chargeable weight, whereas sea carriers charge per container? BG: It’s really all about volume – container ships can carry more than planes, and as such the cost for 10

September 2014

transporting goods via sea is lower per item than it is via air. Obviously there are instances where the speed of air outweighs the associated costs. That said, the container technology we employ, particularly our refrigerated Reefer containers, means that supposedly short-life items, such as fresh food, can now be kept in a ‘fresh’ state for much longer, making sea freight an attractive proposition for industries and sectors which might have traditionally only used air freight. SCD: What would you say are the main reasons behind Maersk Line’s profits in Q1 of 2014…lower unit costs? BG: The main drivers in our Q1 results were high utilisation of vessels and continued cost reductions. Volumes increased by 7.3 percent to 2.2 million forty foot equivalent units (FFE). Lower bunker (fuel) prices also helped. We have spent a lot of time making

F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E

sure our network is as efficient as possible to ensure maximum return â&#x20AC;&#x201C; this contributed to our 2013 results and continued to help drive our financial performance in the first quarter of 2014. SCD: How do you manage what must be a large and complex supply chain operation with over 600 vessels in operation at Maersk Line? Do you have a guaranteed shipping time? BG: Our reliability is one of our key selling points to customers. Our clients know that we will do what it takes to

maintain our vessel schedules. As you point out, we have a huge number of vessels in operation calling at ports across the world â&#x20AC;&#x201C; a Maersk Line vessel calls at a port every 15 minutes. That means we have to be strict when it comes to time in port. Unfortunately we canâ&#x20AC;&#x2122;t control everything, and factors like the weather do mean that we have to be prepared to make tough decisions and have contingencies in place when vessels are delayed. Having good relationships with suppliers really helps here. In the UK, we have a dedicated berth at 11

LOGISTICS

September 2014

PRODUCT TRACEABILITY AND RESPONSE MANAGEMENT

the Port of Felixstowe, and also have relationships with London Gateway and Tilbury. That means that if vessels are delayed and berthing windows are missed we have alternative options to make sure our customers get their cargo and our vessels stay on schedule. SCD: What training and/or programs do you have to develop the skills of your employees? How do you attract and retain these staff? Is there a clear career progression pathway in place throughout the company? BG: We offer all our employees clear training programmes to help them do their current jobs and also to develop their career. As a global employer, being able to work abroad has its attractions for potential employees, and the Maersk Group as a whole has a track record of retaining staff and helping them develop through offering people the opportunity to move into different Group business units. A significant number of staff have been with the Group for many years – whilst we do recruit from outside for experienced roles and to bring in new

‘The world has been slow to recover from the recession, but we expect the global demand for container shipping to increase by 4-5 percent in 2014, and we aim to grow with the market’ talent and ideas, we also help people grow within the organisation to take on new challenges. Employees can see senior leaders have started at the bottom and worked their way up, and that’s a path that’s open to everyone who has the ambition and ability to be a future leader of the business. We make every effort to listen to our employees, as well as keeping them informed on both global and local developments to our business. SCD: What are the main industry trends and challenges Maersk Line faces currently? BG: Over capacity continues to be 13

LOGISTICS an issue for the industry as a whole â&#x20AC;&#x201C; the past couple of years has seen a lot of new vessels ordered pre-2008 now being introduced, leading to a surplus of space. Our own network efficiency drive means that we are not as exposed as some of our competitors. The world has been slow to recover from the recession, but we expect the global demand for container shipping to increase by 4-5 percent in 2014, and we aim to grow with the market. However, over capacity will remain an issue, as will freight rates. The fluctuating cost of fuel will also remain a consistent challenge, both for our vessels and for our inland costs. SCD: On a general note, what sets you apart from competitors within the market? BG: Our reliability is a major factor, as is our investment in new ways of doing business. We offer our customers an industry-leading online booking system, My Maersk Line, and many of our customers, both in the UK and abroad, now manage their bookings online. In the UK, we offer a ship to store door service with an extensive inland network of rail and road haulage, 14

September 2014

meaning businesses from across the country can benefit from our services which call at Felixstowe. Weâ&#x20AC;&#x2122;re also breaking new ground in our approach to being more sustainable as a business. When you have the footprint we do, you have a big impact on the environment. For us this means we have a big responsibility as well. We have now reduced our CO2 emissions by more than one-third since 2007. We are seeing customers with large supply chains taking more interest in their overall impact, and many

RESPONSE MANAGEMENT

appreciate being able to see the role we play in helping them be more sustainable in our own efforts to keep emissions down. SCD: Looking forward, what are the targets over the next five years and how do you see Maersk Line getting from where it is now to that point? BG: Container shipping is going to continue to be tied to the global economy, and as that grows, so we should grow. I mentioned before about growing with the market â&#x20AC;&#x201C; we cannot do that without being a lean

and agile organisation where our costs are controlled and our vessels are as efficient as possible. There are factors outside of our control, but by making sure everything is working at an optimum level, we can minimise the risk of being overexposed should something take a turn for the worse, whether thatâ&#x20AC;&#x2122;s rising fuel costs or bad weather. Our focus will continue to be on utilising our vessels, getting the most out of our network, reducing costs where we are able and grow with the market. 15

S U P P LY C H A I N M A N A G E M E N T

Harness the Power o to Help Improve Yo Bruce Horan is the Director of Telematics for PHH Arval, a global fleet management services provider, and writes about what is making waves in the field W R I T T E N B Y: B R U C E H O R A N

September 2014

of Telematics our Business

SUPPLY CHAIN MANAGEMENT

Telematics increases a fleets’ performance and value NEW RESEARCH shows that 20 percent of the North American fleet market has implemented telematics. While that number may seem low for a technology that’s been in the market for over 10 years, I believe it will double to 40 percent, reaching critical mass, relatively soon. Today customers are empowered when they see telematics as a viable tool to gain deeper insight and visibility into fleet operations and to make 18

September 2014

strategic business decisions that go well beyond GPS tracking and vehicle routing. It enables companies to enhance their fleets’ performance and value. In fact, telematics is becoming increasingly tied to logistics throughout the supply chain. Telematics can assist your company, regardless of your industry or type of fleet. It can show you what you’ve been missing by providing

T H E P O W E R O F T E L E M AT I C S

‘ Telematics can help you execute on scalable improvement plans, change driver behavior – which is key for ROI – and measure results’

YEARS

better insight into your fleet. A successful telematics program means you won’t have to dedicate hours reading through figures and making connections yourself. It can help you execute on scalable improvement plans, change driver behavior – which is key for ROI – and measure results. So why aren’t more companies taking advantage of telematics? The truth is the technology had a bit of a rocky start. Expensive hardware and program costs made a positive ROI challenging, 19

SUPPLY CHAIN MANAGEMENT would-be early adopters were scared away as several telematics companies folded and other’s long-term financial stability was in question. Lastly, certain technology issues plagued the industry. But today, hardware costs are down as much as 300 percent, installations have never been easier, technology issues are rare, and service and delivery excellence have never been higher. I equate the telematics adoption timeline and the impact of the technology to other life-changing technologies, like the PC, Internet and mobile phone. All of those took much longer than 10 years to gain traction and reach critical mass. However, in 2014, most of us

couldn’t imagine conducting business without them. Do you remember the time and effort it took to simply send a document for review and redline before email was mainstream? The same will be true with telematics and fleet management in a few years. You’ll try to imagine how you were able to manage expenses and meet customer expectations with little to no insight into what was actually happening out in the field and it’ll be hard to picture. The benefits of telematics are abundant, including increased fuel savings, more efficient vehicle tracking and routing, and the ability to set a virtual perimeter for a real-world geographic area. For example, one of

Telematics programs are evolving rapidly

September 2014

H A R N E S S T H E P O W E R O F T E L E M AT I C S

‘Implementing telematics will help increase your fleet’s productivity, improve your corporate risk profile and reduce your fleet’s operating costs’ the biggest contributors to poor fuel efficiency is idling, followed by hard acceleration and speeding. Telematics can track these factors and provide fleets the quickest payback, with almost immediate results and cost reductions. The technology can track risky behindthe-wheel driving behaviors (such as failure to use seatbelts, speeding, harsh braking and cornering), which delivers a longer-term provable payback in reduced accident rates and associated costs. Many telematics programs are evolving to cover driver safety, increased employee productivity and efficiency, route compliance, and improved customer service. Telematics can also assist with compliance issues that include

both government-mandated and individualised corporate policies. In an era of analytics, telematics can take data and make it useful. For example, we worked with a national service provider to help implement telematics to reduce the risk to their drivers and improve fuel performance. The immediate payback was a reduction in the company’s fuel expense by almost $3 million in calendar year 2013 and a reduction in their accident rate of eight percent. What other technology can provide that level of return in such a short period of time? Now that the groundwork has been laid to gain insight into utilisation and operations, the company is focused on reducing its fleet size by two percent and its mileage by six percent – impacting the bottom line by an estimated $2.8 million annually. Implementing telematics will help increase your fleet’s productivity, improve your corporate risk profile and reduce your fleet’s operating costs. Telematics isn’t just a matter of installing technology in a vehicle, it’s understanding the resulting information and putting it into action to better serve your company. 21

PROCUREMENT

How Jeff Bezos is aiming to revolutionise Amazonâ&#x20AC;&#x2122;s distribution network Starting out on the floor of his Seattle home packaging goods, the Billionaire entrepreneur has overseen a meteoric rise to his business, but this success means the e-commerce conglomerate now faces a fresh challenge W R I T T E N B Y: S A M J E R M Y

August 2014

PROCUREMENT LET’S GET THIS straight; a man who recognises the meteoric rise of the internet as early as 1994, and believes in himself so much he quits his job, moves house and starts a brand new type of company, is an interesting, if not impressive man. A self-made billionaire, Jeff Bezos has built up his empire primarily off the back of his e-commerce creation, Amazon.com and now ranks at number 17 on the Forbes rich list with an estimated personal fortune worth $30.5 billion as of August 2014. Shares in Amazon rose an astonishing 55 percent in 2013 and last October he bought the Washington Post for $250 million. But now Amazon faces a fresh prospect of invigorating the distribution network of its online retail services and Bezos himself will surely be looking to crack this latest conundrum, with aggressive progression being the key. But it is global issue with an extensive spider web of problems. In March it was revealed the firm would be revamping its US shipping network by significantly reducing its dependency on delivery giants UPS and FedEx, and instead routing 24

September 2014

orders through Amazon’s 55 fulfilment centres, with a promise to make deliveries in two days through the United States. According to inside sources, operations will instead be geared up to utilise and exclusively support local courier firms and the US Postal Service. This is as well as creating its own private fleet for the conceived expansion of Amazon Fresh; a grocery business unit historically only available in Seattle, San Francisco and Los Angeles but being made available to nearly 40 US markets in 2014. This has been a troublesome and cumbersome operation though and the fact transportation expenses have continued to spiral, and reached $6.6

‘Jeff Bezos has built up his empire primarily off the back of his e-commerce creation, Amazon.com and now ranks at number 17 on the Forbes rich list with an estimated personal fortune worth $32.9 billion’

JEFF BEZOS REVOLUTIONISES AMAZON

billion in 2013, might be a worrying and unwanted stat. The obstacles do not stop there either. French MPs unanimously voted to add an amendment to a law from 1981 known in France as the Lang Law, after a former culture minister, which sets the value of new books at fixed prices. All retailers can only lower books’ set price by 5%, in an effort to regulate competition between booksellers and to promote reading. MPs from both the ruling Socialist

Party and the main opposition UMP party also approved a law barring e-shops from shipping bargain books for free. However, Amazon recently side-stepped this red tape by announcing a paltry one euro cent charge for books dispatched to customers’ homes. In another apparent snub to French law, it has been blasted for dodging most taxes by basing its French operations in neighbouring Luxembourg. It is hard just to get a comprehension of how vast this group-wide realignment of its

PROCUREMENT distribution network and shipping arrangements is, but multiple prominent examples give you an idea of the scale. Both Royal Mail and FedEx have seen profits drop, with overall Royal Mail parcel revenue down by 1 percent for the three months leading to June this year; with the company specifically blaming the slide in its parcel business on Amazon’s decision to introduce a £10 minimum spend for free delivery and also to expand its own delivery network. Meanwhile FedEx’s volumes for FedEx’s ‘SmartPost’ service fell by 8 percent to the quarter ending 31 May this year. However, volumes actually

September 2014

increased 15 percent if the numbers excluded the “changes in shipping patterns from one large customer.” FedEx said in the statement accompanying the earnings. This large customer is almost certainly Amazon as it is consistent with Bezos work to lessen the reliance on third party logistics and not many global firms could affect another’s profits so greatly. For many years, products stored in Amazon’s European fulfilment centres outside the UK have been available to order on Amazon.co.uk with a delivery time of between 3-7 days. Now, as a result of improvements and innovations in its cross border delivery network, more than a million products stored in its European Fulfilment Centres are now available for Two-Day Delivery for customers in the UK. By the end of the year, that number of products available is expected to rise to 3 million. Prime customers in the UK will automatically qualify for Two-Day Delivery on these products at no additional charge. Add to that the

JEFF BEZOS REVOLUTIONISES AMAZON

FOCUS ON JEFF BEZOS Net worth: $30.5 billion (Aug 2014) Age: 50 Source of Wealth: self-made No. 21 on Forbes list of world’s richest billionaires Founder and owner of Amazon.com since 1995, set up in Seattle after he quit his Wall Street job. More recently bought Washington Post newspaper for $250 million.

innovative idea where Amazon has announced a partnership to install Amazon Lockers at London Underground station car parks, and it is an overall project that promises much if the ‘aggressive progression’

approach laid down by Bezos is followed through. Lockers will be located at two Tube station car parks; Finchley Central and Newbury Park, and customers will be able to have orders delivered to the lockers at their leisure. Deliveries made to Amazon Lockers nationally have more than doubled in the last year as customers continue to enjoy the flexibility the service provides. With an average of over 11 million journeys on the London Underground every day, this is classic Bezos- tapping into a relatively unheard of practice and capitalising on the business opportunity to stay ahead of the industry curve. Working on improvised tables in the garage of his Seattle home and using his parent’s £300,000 savings as his start-up capital, he defied the forces that causes most young companies to fail. Partly he admits, through sheer good fortune but also in his unwavering determination to create the world’s most customer centric company. If Bezos can use this determination to successfully revolutionise Amazon’s distribution network whilst at the same time keeping the customer experience as the core business focus, then it will be more than just impressive. 27

TECHNOLOGY

Cargo Scanning and Non-Intrusive Inspection 28

September 2014

A key component to supply chain security, we profile the set up at the Port of Felixstowe to see how it carries out the inspection of imported and exported goods

W R I T T E N B Y: S A M J E R M Y 29

TECHNOLOGY JUST LIKE AT any other port throughout the world, statutory inspections of certain cargoes and product types need to be made at Felixstowe. The freight nerve centre on the Suffolk coast, England, is actually the UK’s busiest container port, and this presents a whole realm of logistical challenges, not least the rapid and efficient inspection of cargo. There is a 6,000 square metre Container Freight Station (CFS) located at its Trinity Terminal, which is named after Trinity College, Cambridge, who were original owners of the port land. It houses the latest examination facilities, dedicated to the task of inspecting cargo. A whole array of officials could potentially turn up and want to take a good look inside a container before it is sped away out from the terminal and on towards its destination. As well as providing extensive container devanning and stuffing services, the CFS offers modern, state-of-the-art Border Inspection Post facilities to allow examinations to be made by Suffolk Coastal Port Health Authority, UK Border Force, Special Branch, Association of 30

September 2014

“We are committed to ensuring that cargoes are not unduly delayed and the whole examination process is streamlined” Chief Police Officers Vehicle Crime Intelligence Service (AVCIS), the Forestry Commission, Plant Health and Seeds Inspectorate, Horticulture Marketing Inspectorate and Trading Standards. The Port of Felixstowe said: “We are committed to ensuring that cargoes are not unduly delayed and the whole examination process is streamlined. “As a result, daily planning of the examination areas takes place, in collaboration with the relevant authorities.” To minimise the disruption, risk and negative impact to the supply chain Felixstowe has invested in the creation of two purpose-built Border Inspection Post (BIP) areas to enable specialist inspections to take place; the Temperature Controlled Examination Facility (TCEF) and the

DO YOU KNOW WHERE YOUR CARGO IS?

One of the smaller container ships at Felixstowe 31

TECHNOLOGY

Felixstowe port Ambient Temperature Examination Facility (ATEF). Both of these areas comfortably exceed EU guidelines for BIP’s. There is a dedicated team of 70 people who are specifically deployed to deal with cargo examinations, and they are used to working with over 300 containers each day. Glenn Giles, Head of the Examination Team, said: “We are doing all of this as quickly and efficiently as possible, we don’t want to put a spoke in the wheels of an 32

September 2014

“We achieve an average of under two days for examination whether X-ray, 70 Shed or cold store, which is amazing considering we have ships coming in and unloading 2,000 boxes at a time”

CARGO SCANNING

PORT OF FELIXSTOWE STATISTICS Country: United Kingdom Location: Felixstowe, Suffolk, England, UK

efficient supply chain. “We achieve an average of under two days for examination whether X-ray, 70 Shed or cold store, which is amazing considering we have ships coming in and unloading 2,000 boxes at a time.” Felixstowe is also approved for the import of both refrigerated and ambient-stable products of animal origin both for human consumption and not for human consumption. Mike Gillespie, Operations Manager at New Zealand Farmers, said: “As a major importer of chilled New Zealand

Coordinates: 51.9529°N 1.3095°E Founded: 1875 Operated by: Felixstowe Dock and Railway Company Owned by: Hutchison Port Holdings Type of harbor: Container port Size: 3,383 ha (8,360 acres) Available berths: 9 Employees: 2,500 (2014) Chief Executive Officer: Clemence Cheng Vessel arrivals: 3,000 sea ships Annual container volume: Steady 3,7 million TEU Website: www.portoffelixstowe.co.uk

TECHNOLOGY

Felixstowe port lamb to the United Kingdom, it is imperative that our containers are “landed” rapidly to the terminal post vessel arrival, that strict temperature specifications are adhered to and that key operational processes are both transparent and flexible. “Speed and control are essential elements to this. The Port of Felixstowe team consistently delivers against those criteria demonstrating a very specialised skills set.” All of Felixstowe’s inspection 34

September 2014

facilities are approved and exceed the requirements set by DEFRA and the European Commission. The inspection facilities procedures and processes that are in place are regularly audited by inspectors from the European Commission’s Food and Veterinary Office to ensure that the standards are maintained. Although generally the examination team’s role is simply to bring the containers in for checking, they will also do the devanning on some occasions.

WHERE’S YOUR CARGO?

“Speed and control are essential elements to this. The Port of Felixstowe team consistently delivers against those criteria demonstrating a very specialised skills set”

As part of this, the team tests every dry container for gas to ensure it is safe to enter. According to Glenn Giles, there is a failure rate of about 5 percent on this test, mainly because of phosphene put into containers to keep things fresh. The cargo scanning and nonintrusive inspection processes are sure to expand, as a result of the ongoing trend of cargo growth. Felixstowe will be at the very front when it comes to best practice. 35

TOP 10

TOP10 Rail Companies We provide our own lowdown on the ten leading public rail companies, taking into consideration figures such as market capital, track miles and employee numbers. Written by: Sam Jermy

TOP 10

Tokyu

With history dating back to 1922, Tokyu has become a major private railway operator and land developer in theÂ Greater Tokyo AreaÂ of Japan. Although sitting below the Canadian Pacific Railway on the Forbes 2000 list, it has a greater value of assets and greater sales, therefore Tokyu edges its way into our top 10.

September 2014

R A I L C O M PA N I E S

West Japan Railway

Yet another Japanese railroad company, the third in our top 10 list, the West Japan Railway is fairly modest when compared to its country’s counterparts but is still a huge global player. With £7.94 billion sales, £4.58 billion market capital and more than 43,000 employees the group is firmly within the leading pack of railroad companies. 39

TOP 10

Daqin Railway

Chinese firm Daqin Railway offers both freight and passenger services. Its freight business mainly includes transport of coal, coke, cement, non-metallic minerals, iron, steel, wood, and ore. The company was only founded in October 2004 but already has a staggering 98,000 employees.

MTR

Hong Kong based MTR is the rapid transit railway system of the region, and posted £2.94 billion in sales. Founded in 1979, there are more than 23,000 people employee on what is considered to be one of the most profitable systems in the world, with a high fare box recovery ratio of 186 percent. 40

September 2014

R A I L C O M PA N I E S

TOP 10

Norfolk Southern

As a leading transportation provider since 1883, Norfolk Southern operates 20,000 route miles in 22 states and supports international trade with service to every major Eastern seaport, 10 river ports, and nine lake ports, and operates the most extensive intermodal network in the East.

September 2014

Canadian National Railway

With its network spanning three coasts with over 21,000 miles of track, CN railway has access to more than 75 percent of the North American population and markets worldwide. It boasts that freight customers can ship the heavy, the wide, the perishable, and the dangerous faster, further and cheaper.

R A I L C O M PA N I E S

Central Japan Railway, JRC-TEC-N700

CSX

The transportation supplier company, based in Jacksonville, USA, was formed in 1980 by the merger of Chessie System and Seaboard Coast Line Industries and eventually merged the various railroads owned by those predecessors into a single line that became known as CSX Transportation.

Central Japan Railway

Founded the same day as the Eastern Japan Railway, the Central Japan Railway describes its management philosophy is to “Contribute to community development by adhering to sound management principles, and provide modern, friendly, and reliable services”. Generating just under £10 billion in sales, it seems to be doing a first class job. 43

R A I L C O M PA N I E S

Eastern Japan Railway

Founded in 1987, East Japan Railway operates through the following segments: Transportation, Station Space Utilisation, Shopping Centres and Office Buildings, and ‘Other’ which involves in hotel operations and advertising agency. The Tokyo based-company has a huge £16.91 billion of market capital and more than 73,000 employees. 45

TOP 10

Union Pacific

Union Pacific Corporation is North America’s premier railroad franchise, covering 23 states across the western two-thirds of the United States. Having 31,800 track miles, over 46,500 employees and a market capital of £50.25 billion just illustrates how much of a railroad behemoth Union Pacific has become. The US firm was formed in 1862 to build the eastern end of the historic Iowa to California transcontinental railroad. From 200746

September 2014

2013, Union Pacific invested more than $21.6 billion in its network and operations to support America’s transportation infrastructure. The railroad’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centres, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada’s rail systems and is the only railroad serving all six major Mexico gateways.

NAME OF TOP 10 ARTICLE

Cisco Infrastructure Excellence Brings Market Leadership The Global Service Supply Chain division sees technological agility and the expected boom in the Internet of Things as key components to its ongoing world-class services Written by: Sam Jermy Produced by: Craig Daniels

CISCO

“Cisco’s strategy is to be number one or extremely close to number one in every market we participate, while growing to at least 40 percent market share in each segment” – Marco van Duijnhoven, Director of Global Repair Operations

Cisco relies on more than 600 suppliers worldwide to manufacture, test, ship, and recycle products

September 2014

he Global Service Supply Chain (GSSC) division of Cisco is hoping to capitalise on the potential $19 trillion value of the Internet of Everything (IoE) revolution after succesfully growing its global installed base to more than $400 billion. This growth in the Cisco installed base of networking equipment such as switching, routing, servers and storage facilities nearly doubled over the past five years and has been supported by ongoing investments in people, processes and technology; something which the company believes is foundational to its evolution. Going back as early as the Dot.com era of the 1990s, Cisco realised the importance of supply visibility, global demand and process automation and was busy introducing technologically agile tools to stay ahead of the industry curve. The company, which is headquartered in San Jose, California and has 380 global sites doing business in over 165 countries, now sits on the cusp of another digital revolution as it plans to utilise its market expertise to its advantage and gain a share of the $19 trillion expected to be generated from IoE. For Cisco GSSC, part of CiscoServices, it is much more than getting replacements parts to the right place at the right time. The team has a wideranging mission spanning inventory management and distribution, demand planning, service entitlement, fulfillment, vendor management, configuration, lifecycle support, and logistics,

EUROPE

through to acquisition integration and compliance. Marco van Duijnhoven, Director of Global Repair Operations within Cisco’s service supply chain, said: “Cisco’s strategy is to be number one or extremely close to number one in every market we participate, while growing to at least 40 percent market share in each segment. “We’re in a transformational era where we’re beginning to see people, process, data, and things come alive as part of the Internet of Everything; a growing network of everyday things like cars, refrigerators or street lamps that use a web connection to communicate with each other and the people around them. “This transformational era is creating new connections, turning information into action, and creating a huge financial opportunity.” With over 1,100 depots worldwide, Cisco’s service supply chain provides hardware replacement in 128 countries and delivers 840,000 parts annually, so naturally there is an acute focus on supply chain

SUSTAINABILITY Cisco is committed to sustainable and responsible business practices with regard to ethics, labour, health and safety, diversity, and the environment. Sustainability represents as much as eight percent of the total score on our business scorecard for suppliers

Cisco Systems headquartered in San Jose

w w w. c s r. c i s c o . c o m / p a g e s / s u p p l y - c h a i n

What if you could… • Improve your profit • Reduce your overall return rates • Have complete visibility to your products at all times

....with Celestica, you can. Celestica delivers customized end-to-end solutions, from Joint Design and Manufacturing through After-Market Services. Our services can reduce costs and improve product quality, helping you deliver an enhanced customer experience.

Let’s talk about how we can work together. Toll-free in North America: +1 888 899 9998 Global: +1 416 448 5800 contactus@celestica.com

CISCO

EUROPE

transformation to support the customer experience and expected business outcomes from the Internet of Everything. This supply chain transformation includes investments in web services, analytics, data modelling, virtualisation and decision support to provide a pathway from reactive to proactive and predictive capabilities; from real-time monitoring of end-to-end business processes, automatic detection and management of deviations from plan, to real-time reporting and analysis of operational metrics and trends.

With over 1,100 depots worldwide, Ciscoâ&#x20AC;&#x2122;s service supply chain

Internet of Everything Cisco is the only company with market share leadership across all its industry segments, and its diverse product portfolio from

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provides hardware replacement in 128 countries and delivers 840,000 parts annually

CELESTICA

Knowledge. Expertise. Focus. Celestica provides end-to-end solutions, from Joint Design and Manufacturing through After-Market Services. We service customers in the enterprise computing, communications, industrial, healthcare, smart energy, aerospace and defense sectors. Our global Centers of Excellence are designed to support specific market segments, which allows us to stay ahead of the curve and develop the most optimal market-centric solutions for our customers. Our knowledgeable team understands your industry and can help you gain competitive advantage. Website: www.celestica.com

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KEEPING YOUR YOUR BUSINESS BUSINESS inCONTROL inCONTROL KEEPING

inControl, Jabil’s Intelligent Control Tower, is a holistic, integrated commercial solution inControl, Jabil’s Intelligent Control Tower, is a holistic, integrated commercial solution powered by data-driven analytics that uncovers hidden costs and pain points by providing powered by data-driven analytics that uncovers hidden costs and pain points by providing customers with actionable metrics, competitive benchmarking and risk management and customers with actionable metrics, competitive benchmarking and risk management and mitigation strategies in a progressive graphical user interface. mitigation strategies in a progressive graphical user interface.

inControl helps inControl helps customers manage customers manage a wide variety of a wide variety of unpredictable risk unpredictable risk factors while factors while proactively proactively optimizing their optimizing their business both business both ﬁnancially and ﬁnancially and operationally. operationally.

Holistic Solution Solution Holistic Supply Chain Chain Expertise Expertise && Supply ProprietaryTools Tools Proprietary IntegratedAnalytics Analytics && Integrated Benchmarking Benchmarking Cross-Industry Cross-Industry Experience Experience Proven Results Results && Proven

Globally Globally partnering with partnering with only ﬁnancially only ﬁnancially sound suppliers, sound suppliers, major and minor, major and minor, Jabil is able to Jabil is able to insulate customers insulate customers from supply chain from supply chain disruptions and disruptions and maintain business maintain business continuity during continuity during times of high risk. times of high risk. www.jabil.com www.jabil.com

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collaboration, data centre and the cloud, to security and unified computing, has seen it grow nearly four-fold since 2005. Its growth strategy is aligned to several technology transitions that are combining to enable IoE. This includes the Internet of Things (the networked connection of physical objects), increased mobility, the emergence of cloud computing, and the growing importance of big data. The Internet of Everything is expected to have five to 10 times the impact of the original Internet and it is expected to create $14.4 trillion for the private sector, while $4.6 trillion of the overall $19 trillion value will come from the public sector. There are five main drivers of the IoE value at stake: Asset utilisation reduces selling,

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“The substantial opportunity customers stand to gain through the Internet of Everything cannot be fully realised without Cisco technology”

JABIL

Jabil’s unique combination of global expertise, ingenuity, analytics and financial performance has contributed to the success of the world’s most well known brands. We help companies design, build and take their products to market quickly, affordably and efficiently. But more than that, Jabil helps customers intelligently design their supply chains to be agile, economical and effective even in uncertain times. Website: www.jabil.com

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www.teleplan.com

Making your customers smile is our primary goal... Trusted partner of the worlds’ leading electronic brands

■

A proud Cisco partner for over 10 years

■

We have serviced over 2.5 million networking devices globally

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We work with all 4 Cisco divisions to develop innovative solutions at multiple Teleplan sites Winner of Cisco’s Excellence in Reverse Logistics Supplier Award in 2007, 2009, 2011 and 2013…

JABIL AFTERMARKET SERVICES ARE MERGING INTO IQOR Think of it as a superhighway of support services to get you where you need to go. The combination of Jabil Aftermarket Services with iQor creates the first global company to provide strategic solutions that span the consumer value chain, from customer care and repair solutions to services parts logistics network maintenance and infrastructure repair. Our award-winning technology, logistics and analytics platforms enable us to measure, monitor, and analyze brand interactions, improve business processes, and find operational efficiencies that lead to superior outcomes for our partners across the customer and product lifecycles. www.iQor.com

CISCO

EUROPE

general, and administrative expenses and cost of goods sold by improving business process execution and capital efficiency; Employee productivity creates labour efficiencies that result in increased productivity; Supply chain and logistics efficiency eliminates waste and improves process efficiencies; Improved customer experience occurs as customer lifetime value is increased and market share grows by adding more customers. Lastly, innovation increases the return on R&D investments, reduces time to market, and creates additional revenue streams from new business models and opportunities. “The substantial opportunity customers stand to gain through the Internet of Everything cannot be fully realised without Cisco technology,” the company stated.

As part of its supply chain transformation, Cisco has introduced a platform for real-time ‘Sense and Respond’ capabilities

Infrastructure and Investments Within Cisco’s service supply chain, business agility is directly linked to systems flexibility. Service levels change as new service offerings are introduced and new products may require delivery options that cannot be serviced with a static systems footprint. Specifically within the Service Supply Chain, two years ago Cisco created a vision for a proactive organisation; one that could build and provide services faster than ever before. In collaboration with Capgemini and Pegasystems, it is crafting solutions to accelerate time to capability to address ever-changing market

Repair and refurbishment reduces product cost, extends product utilization and minimizes the amount of waste in our landfills

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C I S C O G L O B A L S U P P LY C H A I N

Automated test lines running multiple test stations

“Achieving our vision to become a proactive service supply chain is well underway; at the Pegaworld 2014 conference in June, we won the Business Impact Award for our work in the Service Supply Chain domain” – Marco van Duijnhoven

September 2014

forces and has adopted Pega as a platform for real-time ‘Sense and Respond’ capabilities for Global Service Supply Chain operations. “As our business grows, we cannot incrementally increase our operations costs. So as a business, we rely heavily on our systems and partners to meet our delivery service level agreements,” van Duijnhoven said. “Achieving our vision to become a proactive service supply chain is well underway; at the Pegaworld 2014 conference in June, we won the Business Impact Award for our work in the Service Supply Chain domain.” By 2020, there will be approximately 50 billion objects connected to the internet, generating a tremendous amount of data. It is also projected that in this year alone the number of mobileconnected devices will exceed the number of people on earth.

CISCO

EUROPE

Subsequently, this means speed, agility and flexibility are all needed to spearhead both the adoption and support of new technologies, such as cloud, to enable fast access to IT and new applications.

Company Information INDUSTRY

Supply Chain

Competitive advantage Year after year, Cisco has focused on disrupting the technology market to deliver intelligent networks and technology architectures built on integrated products, services, and software platforms. The company’s innovation began with the first multi-protocol router in 1984. By 1993, it had $714 million in revenue and had hit a milestone of shipping 100,000 routers. Most recently, Cisco engineers introduced the Network Convergence System—or Cisco NCS ; it provides the performance and intelligence needed to cope with increasing mobility and cloud computing, as well as the broad capabilities to manage the Internet of Everything. Van Duijnhoven concluded: “As the market continues to change, we’ll continue to see around corners. We’ll also continue to put our customers first, making adjustments where needed. In the 2013 financial year, the corporation spent $5.9 billion, making it one of the top research and development spenders in the world. “At the end of the day, it’s about solving our customers’ problems and helping them succeed.”

HEADQUARTERS

CA, USA FOUNDED

1984 EMPLOYEES

75,049 REVENUE

Q4FY14 $12.4 billion PRODUCTS/ SERVICES

Networking Equipment

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Amsterdam Schiphol air cargo stealing a march on European rivals Written by: Sam Jermy Produced by: Craig Daniels

AMSTERDAM AIRPORT SCHIPHOL CARGO

Traditionally the airport has been the third largest cargo airport on the continent, but the Netherlandsâ&#x20AC;&#x2122; unique logistical benefits are being utilised to make it a standout performer

September 2014

he cargo division of Amsterdam Schiphol airport is enjoying a return to consistent solid growth whilst simultaneously driving multi-million euro investment in transforming its operational processes. This year up until the end of June it was 8.8 percent up in volume overall from the same period last year, which is double the percentage growth of all the other major airports in Europe. Clearly the combination of strategies it is implementing is now paying off. In terms of growth, by nature air cargo is a volatile industry and Schiphol is no different in this respect; in May it was 14 percent up, then June was 8.0 percent up, so there can be some monthly disparity. Enno Osinga, Senior VP Cargo at Amsterdam Airport Schiphol said: â&#x20AC;&#x153;On the whole I am

S U P P LY C H A I N

very confident we are seeing good overall growth. We started picking up last August then in November and December it was double-digit growth largely thanks to the Playstation 4 and Xbox One launches leading up to Christmas. We have been solid in our growth figures for quite a while now though.â&#x20AC;? Traditionally, there has been much more volume coming into Europe from China than there is going the other way. But in the past 18 months, Schiphol has been almost perfectly balanced in terms of inbound and outbound traffic. This is partly because, as a result of having significant operations at Schiphol, (often including airside access), leading global freight forwarders have started pulling their cargo out of the rest of Europe and consolidating it at Amsterdam. Then

20+ Percentage of business coming from E-shipments

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X P E R IE N C E 1 0 Y E A R SAIRE CARGO MARKET O N G LO B A L

Russia +7 495 7862613 Germany +49 6963 8097 100

The Netherlands +31 20 654 9030 USA +1 773 800 2361

China +86 21 52080011 Japan +81 3 5777 4025

AMSTERDAM AIRPORT SCHIPHOL CARGO it gets sent out to destination markets like Asia. Strategic epicentre Schiphol is the third largest cargo airport in Europe after Frankfurt and Paris and its origins go back nearly 100 years. More recently it has focused on providing a full logistic hub facility to European industries. As a result, many multinational groups have their European distribution centres in the region. Logistics has always been part of the Netherlands’ core competences: the largest number of specialist airfreight trucking companies are actually based in the country and there has been significant road infrastructure investment branching out towards the rest of Europe too. Schiphol is very close to the seaports of Rotterdam and Amsterdam, the first and fifth largest ports in Europe. This again strengthens the Netherlands’ position as a strategic gateway, and supports Osinga’s belief that creating a national logistics hub helps grow cargo business. It is a logistics-minded country; geographically everything stands very close together so a major manufacturing company can bring in its goods both by sea or air and deliver them into the same distribution centre.

94 Number of years the Airport has been in operation

An airport is the most critical part of the supply chain

Digital connectivity revolution Schiphol Cargo is now working very closely with numerous organisations to build a new total logistics information platform w w w. s c h i p h o l . n l

AMSTERDAM AIRPORT SCHIPHOL CARGO

‘Schiphol Cargo is now working very closely with numerous organisations to build a new total logistics information platform that will hold all the data from all the goods that enter and leave the Netherlands’

The cargo area of the airport is well signposted 66

September 2014

that will hold all the data from all the goods that enter and leave the Netherlands whether they travel by sea, truck or air. Osinga said: “That is very complex and will take a long time before it is fully completed. But imagine if you’re a customer and you use all these modalities to bring goods to the Netherlands, how incredibly strong it is if

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Key Personnel

Enno Osinga Senior Vice President Cargo

you’re able to manage all those different traffic streams through one single digital database. “It’s a vast job; we have been working on it for 18 months and will still be working on it for many more months to perfect it. “This process to fully digitise our cargo operations has been running for five or six years and we are talking a major investment

In addition to his cargo role at Schiphol, Mr Osinga is also an advisor to the Board of Management of the Schiphol Group. Mr Osinga is a nonexecutive board member of Cargonaut (the community system of the Dutch air cargo community), a board member of Air Cargo Netherlands (the Dutch Air Cargo Association), Vice President of TIACA and a member of the Executive Board of DINALOG (the Dutch Institute for Advanced Logistics).

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AMSTERDAM AIRPORT SCHIPHOL CARGO

Schiphol cargo continually looks to improve processing procedures

“This process to fully digitise our cargo operations has been running for five or six years and we are talking multi-million euro investment” – Enno Osinga

September 2014

in resources. Over 20 percent of shipments are completely E-shipments. By the end of 2015 we hope to be at 100 percent to really enhance and streamline the whole process.” The cargo division at Amsterdam states it is continually creating and maintaining ‘relevant and valuable connections’ geographically in order to build an impressive business network. Two big advantages are that it can work in parallel with stakeholders like the airlines, trucking and handling companies plus customs rather than having to wait for the next person to fall in, and eliminating paper will be an obvious benefit to the digital revolution. Osinga added: “An airport is the most

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critical part of the supply chain. Once in the belly of an aircraft or put into a truck... itâ&#x20AC;&#x2122;s fine. It is the bit in between that is crucial where things have a chance of going wrong- and that is all at the airport.â&#x20AC;? Schiphol offered forwarders the opportunity to have their own facilities with direct air side access. This means when air cargo comes in, forwarders have it in their own hands within two hours of arrival of the aircraft, rather than the more common wait of up to nine hours.

Company Information INDUSTRY

Air cargo HEADQUARTERS

Amsterdam Airport FOUNDED

(Airport) 1920

Marketplace matters Osinga is involved in managing Air Cargo Netherlands, which is a branch organisation of everybody involved in air cargo in the nation. Organisation wise, Schiphol Cargo continually looks for process and procedure improvement in a collaborative sense rather than taking an isolated, fragmented approach. Over the years, it has won a lot of awards, specifically as a cargo airport, and that has been driven by innovation. When IATA started with its E-Freight project, Schiphol acted as a catalyst. As a result of which, it was very much the benchmark airport. Amsterdam Airport also has a highly developed, multi-lingual workforce with substantial experience in all modalities who are in essence internationally-minded. All its current and future focus is on international trade and fully integrated logistics.

EMPLOYEES

8 REVENUE

Undisclosed PRODUCTS/ SERVICES

Air cargo services

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HP PPS Logistics EMEA Departing from tradition The tech giantâ&#x20AC;&#x2122;s Personal and Printing Systems (PPS) arm is opening up key gateways across the region as it shifts to direct shipping in a bid to serve customers as efficiently as possible and drive innovation in the supply chain Written by: Tom Wadlow Produced by: Craig Daniels

Tunnel in between two free trade zones in Chongqing, China, developed for HP 71

HP PPS LOGISTICS EMEA

The Piraeus Container Terminal (PCT)

H Containers at Piraeus

72 September 2014

P PPS Logistics is transforming the high tech supply chain by specialising in direct shipping to customers via regional gateways and by utilising all forms of transport and intermodal exchanges. Encapsulating this move and showcasing many of the advancements being made is the newly established hub at Piraeus on the west coast of Greece, where HP is the first high tech company to harbour its enormous potential as a logistical base. Also helping to streamline ever-complex processes across the region as a whole is

S U P P LY C H A I N

technology, with the logistics team and their distribution partners benefiting from HP’s expertise in real time and cloud solutions along with transport management systems. Not only are these moves economically sound and driving down all-important turnaround times, they are also helping to develop a sustainable logistics operation, a key mantra behind the work of the HP PPS Logistics unit. Ultimately, by continuing to offer operational excellence and further expand its network, its ambition is to provide a competitive distribution advantage to the

“Showcasing many of the advancements being made is the newly established hub at Piraeus on the west coast of Greece” – Bert de Winter, Director

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TNT, Taurusavenue 111, 2132 LS Hoofddorp, the Netherlands

www.tnt.com

HP PPS LOGISTICS EMEA wider company, adding further enticement to use HP beyond its product excellence. Departing from tradition Charged with ensuring that tens of millions of PPS products in the EMEA region, namely desktops, notebooks and printers, reach the companyâ&#x20AC;&#x2122;s three main groups of customers each year - retailers, distributors/wholesalers, and large corporate accounts - is Director of HP PPS Logistics EMEA, Bert de Winter. Key to fulfilling this duty in the most effective way possible is a move to direct shipping and cutting turnaround times, which also frees up cash flow as fewer unsold products remain in storage. â&#x20AC;&#x153;We are building more direct, smaller shipping

SUPPLIER PROFILE

EUROPE

Key Personnel

Bert de Winter Director

TNT

Worldwide Courier Delivery Service We will make sure that your documents, parcels and freight are delivered safely through our door to door integrated air and road networks. Our international operations are focused on the key areas of world trade in Europe, Asia, North America and South America. We also have strong domestic networks in Australia and all major European countries including the United Kingdom. Website: www.tnt.com

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45 FT PALLETWIDE CONTAINERS AND MORE The 45ft concept is the intermodal transport system of the future/

45ft containers, such as the standard dry unit and various types

45ft means transporting more with fewer movements, all

of reefers; the diesel-electric and the all-electric (as pictured) with

handled with the same infrastructure as used for 40ft containers.

different options such as double-stack, track & trace system and

That represents efficiency in terms of costs, environment and

tail-lift. Also offered are the curtain-sided, open top, garment,

infrastructure. UNIT45 is the only company in the world that con-

bulk unit (also 20/30/45ft) and the VuCaFrame, especially

centrates exclusively on the development, construction, financing

designed for transporting cars. The specification of our 45ft pallet-

and delivery of containers within the 45ft concept. UNIT45 offers

wide container can be modified to meet differing needs. So let the

European shortsea/intermodal transport operators a range of

future begin today and visit us at www.unit45.com

Villapark 7-8

3051 BP Rotterdam

The Netherlands

phone + 31 10 211 02 22

fax + 31 10 218 32 84

www.unit45.com

info@unit45.com

HP PPS LOGISTICS EMEA lanes, for example from Asia to Dubai, and Russia into Western Europe,” de Winter said. “In most areas we have a dual delivery of air and ocean freight so we can be flexible with customers. “We can build to order so we no longer have to second guess what the customer needs.” The need for direct as opposed to traditional routing came around the turn of the century. HP’s Regional Director for EMEA Logistics Ronald Kleijwegt explained: “Since around 2000 a lot of manufacturing has moved from the US and Western Europe to Asia and parts of Europe further east.” “We needed to move to direct routing and use alternative gateways reducing volumes moving via Rotterdam and Hamburg, which remain important nonetheless.”

SUPPLIER PROFILE

S U P P LY C H A I N

Piraeus port

UNIT 45

UNIT45 focuses in Europe specifically on the development, construction, financing and delivery of the 45ft container, according to the wishes of the customer. The 45ft container concept is the most efficient solution to the logistical problems of the future modality and falls entirely within the European legislation. Central high innovation and the use of high quality materials, focusing on the practical applicability of the concept 45ft. The Rotterdam-based company as “Intermodal Innovator’de undisputed market leader in this segment. Website: www.unit45.com

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Global Carrier Global Credibility COSCO is engaged in transforming Piraeus Port into the biggest Container Terminal in the Mediterranean, Logistics Service Centre and becoming the South East Gate for cargoes from/to Central Europe & Balkans.

ADV 288/2014EN

info@cosco.gr

The router for success routes. In our logistics centres, we bundle complex tasks and requests to create efficient ways of arriving at the goal. Through intelligent data management, we find solutions that link new as well as existing connections so successfully that some customers even award us the title â&#x20AC;&#x153;Regional Logistics Supplier of the Yearâ&#x20AC;?. Experience what moves our customers: www.gw-world.com

HP PPS LOGISTICS EMEA Piraeus The continually developing and exciting logistics hub at Piraeus encapsulates HP’s strategy to open up gateways, become more efficient and explore new transportation options. The company is a forerunner in this respect, being the first tech business to exploit the Greek port’s huge potential, with massive expansion in activity planned for this base. “We started using Piraeus at the end of last year and are looking to ramp up the volume going through there in the next few months, from 20 containers per month to 300,” de Winter said. “It is a more attractive solution in terms of turnaround time, especially when serving the Mediterranean countries where it is far easier to sail here than into the more traditional western European ports.” The port has seen enormous investments from China in recent times, part of a process which has witnessed a logistical Eurasia region gather momentum as Asia moves west and Europe further east. Kleijwegt added: “Economically, people have talked about Greece negatively but our experience has been very positive when working with the government and Chinese firm COSCO.” “These days Piraeus is one of the most sophisticated ports in the world and we use it for the Balkans, Central and Western Europe and significant parts of Africa.” “With Russia, the traditional route was always

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Since around

2000 Manufacturing has moved from the US and Western Europe to Asia and parts of Europe further east

HP’s main office in Ostrava, Czech Republic

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HP PPS LOGISTICS EMEA

HP Logistics can increase fill rates by about

30% which means fewer trucks on the roads

The rail side loading area at the PCT port

80 September 2014

via Rotterdam or Hamburg into St. Petersburg but now because of Piraeus we have a coastal service into the Black Sea and straight to Moscow, cutting turnaround time by seven to eight days.” Delivering on tracks Another major development at Piraeus which HP played a prominent part in is the establishment of a rail link all the way to the Czech Republic, home to a major HP desktop assembly facility. “The rail track has been extended to the northern infrastructure in Greece and we are expecting the first containers imminently, taking us beyond the 300 a month we projected,” Kleijwegt said. Rail is becoming an increasingly important mode of transport for HP PPS Logistics EMEA, reflected by the success of the China-Germany line since late 2011. Kleijwegt added: “We began with 1011 pilot trains and since then we have run about 80 from China into Duisburg, each carrying about 40-50 containers. “HP has taken the lead here and other multinationals are following us. We are always looking for opportunities and will be looking to get trains into other European destinations.” Continuing the shift to sustainable and intermodal methods, the company has also moved a lot of operations from air to ocean freight in the past five to seven years and is looking to work with the most innovative logistics partners.

S U P P LY C H A I N

“Our preference is to work with creative providers who think in the same spirit as we do,” Kleijwegt said. “We are dealing pretty much with the top 10 logistics companies in the world simply because of our magnitude and these big providers are also some of the most innovative.”

A client’s consignment being prepared prior to dispatch

Sustainable innovation The shift to alternative and intermodal transportation demonstrates a commitment w w w. h p . c o m

HP PPS LOGISTICS EMEA

To improve HP PPS Logistics’ existing practice for sustainability, they introduced a new Transport Management System across Europe which will improve fill rates in containers

82 September 2014

to sustainable practice seen right through the PPS Logistics operation. Technology is another area in which processes can be streamlined and made greener. “We are just introducing a new Transport Management System across Europe which will improve fill rates in trucks,” de Winter said. “We can increase fill rates by about 30 percent which means fewer trucks on the roads.” Kleijwegt also pointed towards the use of biofuels on carriers and solar panels on some of HP’s distribution centres as other sustainable initiatives, as well as incorporating the company’s expertise in IT and cloud solutions. “We are motivating our suppliers to go

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into this environment and become more efficient,” he added. “We want to have real time visibility all the time and are looking for paperless solutions in the logistics chain.”

Company Information INDUSTRY

Tackling complexity In becoming more efficient, direct and sustainable, the supply chain is presented with challenges which demand an inventive workforce on top of the advanced technology and methods of transport. HP set up its Supply Chain Academy one and a half years ago, bringing benefits to the 60 workers involved in PPS EMEA Logistics operations. “Our people are given a business challenge that we need to solve in say six months, something which we are yet to solve ourselves,” de Winter said. “This helps them to further deploy their talent and expose them to senior management in the company and deal with very complex operational issues.” With the right people on board, HP’s PPS Logistics team looks set to serve its customers in innovative and efficient ways while adopting increasingly sustainable practices. Kleijwegt also hinted at the exciting times which lie ahead in the region, particularly in subSaharan Africa where the company is looking to build on its existing presence and emulate the infrastructural success it has seen in Piraeus. “It is only a matter of time before we see development there,” he concluded.

Supply chain, Technology HEADQUARTERS

3000 Hanover Street, Palo Alto, CA, USA FOUNDED

January 1, 1939 EMPLOYEES

317,500 worldwide REVENUE

$112 billion PRODUCTS/ SERVICES

Distribution of Personal and Printing Systems to the EMEA region

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SKA International Group

continues to raise the business profile of the toughest environments Written by: Tom Wadlow Produced by: Craig Daniels

S K A I N T E R N AT I O N A L G R O U P

Despite press coverage depicting the likes of Iraq and Somalia as notorious hotbeds of instability, the company is proving that commercial potential in such places can be extracted by offering vital fuel supply and logistics operations where many would turn and run

727 Freighter

September 2014

KA International Group is an expert in doing big business in difficult places, underlined by its $80-100 million investment in a stateof-the-art fuel storage facility 20km upstream from the Iraqi coast, testament to more than 10 yearsâ&#x20AC;&#x2122; experience of operating in the war-stricken country. Having excelled in supplying and transporting fuel and equipment during the major US occupation years, the Dubai-based company, with more than 700 employees and turnover in excess of $500 million, is increasingly looking to oil and gas opportunities in Iraq and other countries across the Middle East and Africa with challenging circumstances. SKA has significant ongoing investments in Somalia and Uganda, and is raising the profile of the Ras Al Khaimah International Airport in the UAE with a 10 year agreement, where it has built and operates an Aviation Fuel Storage Facility. SKAâ&#x20AC;&#x2122;s capabilities include a wide range of fuel supply chain management services, aviation services, ground logistics, life support, facility

S U P P LY C H A I N

SKA Bedford Trucks in Mogadishu

construction, and security services. Working as a good corporate citizen, and helping to develop business, people and communities while supporting charitable initiatives, lies at the heart of what CEO and President, and 100 percent owner Mike Douglas is vying to achieve. “Despite the negative coverage of the countries we are in there is huge potential for development,” he said. “We are already changing that negative impression and a big part of what we do is give back to the communities we do business in. “The company can continue to grow significantly in the next three to five years.”

Key Personnel

Mike Douglas CEO and President

w w w. s k a - a r a b i a . c o m

Providing Turn-key Rental Power Providing Turn-key Rental Power SolutionsTurn-key to the OilRental & GasPower Industry Providing Providing to Turn-key Power Solutions the Oil Rental & Gas Industry Solutions to to the the Oil Oil & & Gas Gas Industry Industry Solutions Whether you need temporary power for the operation of oilfields, the construction of platforms, early temporary production,power planned maintenance loadtest of main power Whether you need for or theemergency operation of oilfields, theor construction of systems, Aggreko has the solution. platforms, early production, planned maintenance of main Whether you need temporary power or foremergency the operation of oilfields,or theloadtest construction ofpower systems, Aggreko has the solution. Whether you need temporary power foremergency the operation of oilfields, or theloadtest construction of We offer full project planning, installation and commissioning, and 24/7 service maintenance. platforms, early production, planned or maintenance of main power platforms, early production, planned or emergency maintenance loadtest of main power systems, Aggreko has the solution. We offer full project planning, installation and commissioning, andor24/7 service maintenance. Aggreko, Power Specialists systems, Aggreko has the solution. in Oil & Gas We offer full project planning, installation and commissioning, and 24/7 service maintenance. Aggreko, Power Specialists in Oil & Gas Middle East Ltd. installation WeAggreko offer full project planning, and commissioning, and 24/7 service maintenance. PO Box 16875, Dubai, UAE Aggreko, Power in Oil Aggreko Middle EastSpecialists Ltd. T: +9714 808 6100 F: +9714 883 1825 Aggreko, Power Specialists in Oil PO Box 16875, Dubai, UAE Aggreko Middle East Ltd. T: +9714 808 6100 F: +9714 883 1825 UAE PO Abu BoxDhabi, 16875, UAEDubai, UAE Aggreko MiddleDubai, East Ltd. +971 (0)4 8086100 +971 (0)2 5549494 T: +9714 808 6100 F: +9714 883 1825 PO Box 16875, Dubai, UAEDammam, Dubai, UAE Abu Dhabi, UAE Kuwait City, Kuwait KSA +971 (0)4 +971 (0)2 5549494 T: +9714 808 6100 F: +9714 883 1825 +966 8086100 (0)13 8580301 +965 23983648

& Gas & Gas

Sharjah, UAE +971 (0)6 5345999 Sharjah, UAEKSA Jeddah, +971+966 (0)6 5345999 (0)12 2727640 Dubai, UAEKSA Sharjah, KSA UAE Abu Dhabi, Jeddah, Kuwait City,UAE Kuwait Dammam, +971 (0)4 8086100 +971 (0)6 5345999 +971 (0)2 5549494 +966 (0)13 +966 (0)12UAE 2727640 +965 23983648 Dubai, UAE8580301 Sharjah, Abu Dhabi, UAE Aggreko operates from Dammam, over 190 locations throughout the world. Jeddah, Kuwait City, Kuwait KSA +971 (0)4 8086100 +971 (0)6KSA 5345999 +971 (0)2 5549494 For the location nearest you, please go to: www.aggreko.com/contact +966 (0)13 8580301 +966 (0)12 2727640 +965 23983648 Jeddah, KSA Kuwait City, Kuwait KSAthroughout the Aggreko operates from overDammam, 190 locations world. +966 (0)13 8580301 +966 (0)12 2727640 +965 23983648 For the location nearest you, please go to: www.aggreko.com/contact Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact 59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1

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06/02/2 06/02/2014

S K A I N T E R N AT I O N A L

SUPPLIER PROFILE

AGGREKO

Since its foundation over 50 years ago, Aggreko has grown to become the worldâ&#x20AC;&#x2122;s leading provider of rental power and temperature control solutions. With over 5,700 employees operating from over 194 locations, Aggreko provides 24/7 availability and service support. Aggreko offers the highest levels of performance and customer service and is truly a global force in temporary power generation. Aggreko in the Middle East Since opening its first regional office in Sharjah in 1991, Aggreko today offers round-the-clock service support and equipment availability in the Middle East through a network of twelve locations in eight countries; UAE, Oman, Qatar, Kuwait, Bahrain, Saudi Arabia, Turkey and Iraq. Practical Solutions More than products, Aggreko has significant experience in providing power generators, electrical testing and temperature control services, offering total power and cooling solutions. Its equipment allows the flexibility of creative and novel solutions to suit customer needs - solutions that work not just on paper, but in practice. This means offering 24-hour back-up 365 days a year and making full use of a global network of depots to ensure that the equipment is on-site in the shortest possible time. The considerable success of Aggreko is due not only to the services provided, but the way in which those services are provided. The accomplishments are a result of the application of vision and creativity to customers and giving them ideas and solutions that improves their performance â&#x20AC;&#x201C; every time. By working with Aggreko, our customers can focus on their core activities, secure in the knowledge their power supply is in the hands of an expert organisation. Website: me.aggreko.com

2014 12:55 12:55

S K A I N T E R N AT I O N A L

Offloading cargo

80,000 Planned number of tonnes of fuel storage available at the Port of Khor Al Zubair 90

September 2014

Khor Al Zubair Iraq represents arguably the greatest challenges but also the greatest amount of activity for SKA, which operates under nine companies across six Middle Eastern and African countries. Its current flagship investment lies at the Port of Khor Al Zubair, the first privately-owned fuel storage facility in Iraq, with a 20,000 tonne capacity, set to rise to 80,000 once phases two and three are completed. The expansion, which will take total spend to upwards of $80 million, will allow SKA to deliver more fuel to power vital industries in the future. â&#x20AC;&#x153;We have encountered some significant challenges but we are very active, supplying fuel

S U P P LY C H A I N

The company’s aim is to handle third party imported products

and importing refined products, and keeping power stations operational in what is a very difficult time,” Douglas added. “The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums. Our plan is not only to handle our own fuel through the terminal but to handle third party imported products also.” SKA also has a testing lab at the site where Intertek conducts international fuel certifications, giving peace of mind to customers in the knowledge that their fuel is of the highest standard, something which has been problematic in Iraq in the past.

“The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums” – Mike Douglas

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S K A I N T E R N AT I O N A L G R O U P

“11 years in Iraq has given us the experience to manage our way through a lot of the problems” – Mike Douglas

Investing in Iraq This project is representative of a shift towards focusing on the oil and gas markets in the country following a number of huge and varied projects based around the US military. SKA handled most of the logistics freight for the US government in a six-year contract and carried out an enormous 180,000-hectare crop spraying scheme in 2006; this while being the key fuel supply chain operator. It now has a fleet of 500 trucks in Iraq moving all kinds of fuel and equipment, and is working with global oil and gas companies including BP and Lukoil. The company’s local knowledge and

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Trucks moving fuel

experience is central to its success. “Security is a major issue in a lot of our regions,” Douglas said. “But 11 years in Iraq has given us the experience to manage our way through a lot of the problems. We have a thorough security plan in place and an extensive evacuation procedure should the need ever arise. “Our experience and knowledge of what happens on the ground is our greatest asset – we can foresee issues before they come to us.” The resoluteness of SKA has played an important part in convincing businesses to invest in Iraq, and Douglas, himself having served in the armed forces, is an active figure at the Iraq British Business Council. This body works tirelessly to bring in investment to the country and SKA is a founding member.

500 Number of trucks in Iraq moving all kinds of fuel and equipment

w w w. s k a - a r a b i a . c o m

ENGINEER.PROCURE.CONSTRUCT.MANAGE

EPC SERVICES

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Chemie-Tech is a professional Industrial solutions provider, offering high quality Engineering, Procurement Construction & Project Management services to Oil & Gas, Petrochemical & Process, Power & Water Industries. The sphere of activity is focused in providing expertise and turnkey solutions to clients throughout Middle East, Australasia, Africa and North America. With Global Operations and technical expertise to respond to the complex challenges of the Bulk Liquid Storage Tank Terminal/Depots Installation, Offsite, Utilities, Pipeline, Process Plants (Refinery & Petrochemical), Topside Facilities, Fuel Ethanol Plants, Bio Diesel Plants or Used Oil Recycling Plants, Chemie-Tech delivers Quality Projects.

PO Box 29781, Sharjah, United Arab Emirates Tel +971.6.5530776 Fax +971.6.5538466 bd@chemietech.com www.chemietech.com

Chemie-Tech

S K A I N T E R N AT I O N A L G R O U P

EUROPE

Ras Al Khaimah Closer to its Dubai headquarters, the company is working to improve the commercial profile of Ras Al Khaimah International Airport. A $10 million aviation fuel storage facility, recently commissioned, is the first step in attracting both cargo and passenger carriers to the airport. Douglas believes the incentive of a competitive fuel and handling package will draw in investment where before it may not have been attractive. “As the UAE rapidly expands there is a lot of congestion at Dubai International, but currently at Ras Al Khaimah there is a very low level of activity,” he said. “We are injecting some fresh ideas and the large amount of hotel developments going on also shows the tourism potential.” Somalia, Uganda and beyond Aviation is also a crucial part of SKA’s work in Africa, not least in Uganda and Somalia, arguably the most unstable nation on the continent. Here SKA has several contracts with the United Nations (UN) mainly based around life support and fuel supply, and continues to provide supply chain services to Mogadishu airport having given it a new lease of life between 2010 and 2013. SKA has operated helicopters as well as its own fixed-wing aircrafts and truck fleet in Somalia, with a significant focus now being turned towards oil and gas operations. Douglas added: “We have been on the ground

SKA has operated helicopters as well as its own fixed-wing aircrafts and truck fleet in Somalia

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S K A I N T E R N AT I O N A L

The company invests significantly in training

“We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have” – Mike Douglas

September 2014

for coming up four years and have developed a unique capability in terms of being able to do business. “There is a big opportunity here for oil and gas and a lot of mineral resources which are yet to be explored. We are long-term investors, here for the long haul.” In Uganda, the company is set to begin building a 20,000-tonne fuel storage facility just outside Kampala, with operations looking to commence in 2015. The site is strategically placed on the rail and road networks from Mombasa, facilitating increased import of refined goods. SKA is also about to retain its air operating certificate, an important step on continuing work

EUROPE

here and for other UN projects in the likes of the DRC, South Sudan and Central African Republic. Building up communities An ultimate end for Douglas is to revitalise the societies in which the company works, with a big part of this revolving around employing and developing local people in the business. SKA employs more than 700 people, a mixture of former armed forces personnel, commerciallyfocused personnel, as well as local nationals. “We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have,” Douglas added. “We invest a lot in training and sending people abroad to become qualified – I want a loyal group to take us forward.” The company also invests heavily in the charitable sector, for example in Iraq where it supports many events run by the Amar International Charitable Foundation. By continuing to improve its own offering, SKA International Group can keep on driving commercial growth in the world’s most challenging environments where help is needed the most, ultimately uplifting the lives of communities that have endured years of hardship. Douglas concluded: “Despite the negative media headlines there is a huge amount of opportunity in African and Middle Eastern countries. The message I want to give is that we are here to stay.”

Company Information INDUSTRY

Supply Chain & Energy HEADQUARTERS

Dubai, UAE FOUNDED

2003 EMPLOYEES

700+ REVENUE

Not Disclosed PRODUCTS/ SERVICES

Logistics

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National Association of Road Transportation by Bus: (ANETRA) Written by: ANETRA Produced by: Lucy Verde

n 99

N AT I O N A L A S S O C I AT I O N O F R O A D T R A N S P O R TAT I O N

Key People

Augusto Victoria ANETRA president

he National Association of Road Transportation by Bus (ANETRA) is a trade association created on October 31, 1983, with the intent to bring together all the motor coach transportation companies in Uruguay. Its main objective is to promote the interests of its members. For this purpose, the association has been endowed with the capacity to represent the member companies in front of governmental entities, press, and other associations. A few of these interests are to promote the development of Uruguayâ&#x20AC;&#x2122;s highway and passenger transportation systems by sponsoring economic analysis, market research, and legal transport studies; to facilitate the exchange of information with other organizations in Uruguayâ&#x20AC;&#x2122;s public and private sectors, as well as with other national, foreign or international transport-related associations; and to help government develop and enact measures and regulations that improve the sectorâ&#x20AC;&#x2122;s operations. To achieve these goals, ANETRA organizes, sponsors and participates in meetings, seminars and symposia related to passenger transportation by bus or other matters of interest to the sector. These events serve as a platform for motor coach passenger transportation companies to collaborate and strengthen the relationships among themselves, as well as their relationships with different government entities and with the

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N BY BUS public in general. Each member company has a number of statutory rights that allow it to participate in the institution’s decision-making process. Member companies also acquire a number of benefits and support services, such as legal counsel, vehicle and passenger insurance consulting services, specialized assistance in case of traffic accidents, staff and management training courses, access to relevant conferences and events, and the assistance of a safety and health at work technician among others.

“…to promote the interests of its members”

ANETRA’s member companies are characterized -and recognized -for heavily reinvesting in the industry. These companies perform a public service that has as its main objective the efficient and safe movement of

ANETRA’s member companies w w w. a n e t r a . c o m . u y

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N AT I O N A L A S S O C I AT I O N O F R O A D T R A N S P O R TAT I O N

ANETRA meetings

people. ANETRA’s member companies take this task very seriously, and constantly reinvest to maintain and improve the industry’s standards of quality, safety and modernization. This reinvestment policy by ANETRA’s member companies has provided Uruguay with an internationally recognized transportation system in South America, especially in matters of safety, comfort and technology. Like any public service, the cornerstone of the activity is the legislation that regulates it. In Uruguay, the Executive Branch of government is responsible for the rules and regulations that dictate the public transportation of persons. This causes the system to have a lower judicial certainty to what it truly requires to operate properly. Due to these circumstances, ANETRA is 102

September 2014

N BY BUS currently pushing for the transformation of this set of decrees into a true state policy; in other words, into a stable regulation that transcends different government administrations every five years. ANETRA understands that the best way to achieve this goal is to develop, promulgate, and adopt an overarching transportation law for the entire industry. The objective of an overarching law is to provide users, workers, and companies a stable regulatory framework, and to establish a set of guiding principles that clearly identifies the main ideas to further develop the industry.

“ANETRA understands that the best way to achieve this goal is to develop, promulgate, and adopt an overarching transportation law for the entire industry”

Company Information NAME

National Association of Road Transportation by Bus (ANETRA) INDUSTRY

Road Transportation by Bus HEADQUARTERS

Uruguay KEY PEOPLE

President: Augusto Victoria Vicepresident: Claudia Sanchez Secretary: Cr. Sebastian Caraballo Treasurer: Jupiter Bagnasco Prosecretary: Catalina Vejo Protreasurer: Daniel D’Alessandro Vocal: Ing. Gualberto Carminatti Vocal: Bruno Nuñez Vocal: Manuel Garcia EMAIL

anetra@anetra.com.uy w w w. a n e t r a . c o m . u y

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Business Chamber of Logistics Operators: History of CEDOL Written by: CEDOL - Carlos Musante Produced by: Lucy Verde

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C O M PA N Y N A M E

Provinter headquarters

History

EDOL stands for the â&#x20AC;&#x153;Business Chamber of Logistics Operatorsâ&#x20AC;?, an entity that was born in late 1998 in order to assume the representation of companies whose main activity is the provision, partial or comprehensive manner within the Logistics Services territory of our country.

Facilities

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September 2014

SECTOR

Since the late ‘90s, outsourcing of logistics services was presented as a strategic alternative to “Production Companies” and as a business opportunity for “Logistics Operators”. That’s when the Business Chamber of Logistics Operators (CEDOL) was born at the behest of a small group of companies and men that promoted the concepts of outsourcing and promoted the best practice processes and technologies that

“To promote good business practices, while encouraging the spirit of unity and solidarity among logistic operators”

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B U S I N E S S C H A M B E R O F L O G I S T I C S O P E R AT O R S

enable to provide a satisfactory level of quality customer service costs compatible with those service levels.

CEDOL meeting

From the beginning (15 years ago) its mission has been to promote good business practices, while encouraging the spirit of unity and solidarity among logistic operators, actively participating in legislative issues of all jurisdictions, providing deliverables on labour technical and commercial, or issues affecting logistics activities; also being present in any situation involving the interests of the sector.

Warehouse

Members CEDOL has two classes of partners: the socalled Active Members and Adherents Partners, which are usually suppliers.

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September 2014

CEDOL

Active Members are companies engaged in logistics of the following processes:

Company Information NAME

- Supply. - Warehouse Management. - Transportation, National Distribution and Cross Dock. - Regional Transport International. - Logistics Management Network. - Physical Security and Custodial Services. - Information Management and Documentation. - Completion of products off the production stage. - Other Logistic Services routinely defendants.

Officers As Chamber CEDOL is an active member of FADEEAC and, as such, its Executive Committee.

CEDOL INDUSTRY

Logistics Operators HEADQUARTERS

Argentina KEY PEOPLE

President, Andreani Logistica S.A.: Jorge Lopez Vicepresident 1, Loginter S.A.: Enrique Rivas Vicepresident 2, SAF S.A.: Ignacio Rey Iraola Vicepresident 3, Cruz del Sur S.A.: Norberto Pennela NUMBER OF MEMBERES

The address of the Chamber is in the hands of a Board of Directors which sets the objectives for the short, medium and long term, and that these controls are carried out. This Board is elected every two years.

ADDRESS

Sanchez de Bustamante 54, Ciudad de Buenos Aires, Argentina EMAIL

cmusante@cedol.org.ar WEB

www.cedol.org.ar

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Halterm Limited

Haltermâ&#x20AC;&#x2122;s CAD $20 million investment in two new container cranes is closely allied to a drive for growth, performance and process ex

CEO and Managing Director of Halterm Container Termina 20 million dollar investment in two new container cranes an improvement to match customer expectations. Written by: Lindsey Ryan

Produced by: Michael Magno

xcellence.

al Limited, Ashley Dinning, discusses the nd the companyâ&#x20AC;&#x2122;s drive for continuous

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H A LT E R M L I M I T E D

Established in 1969, Halterm Container Terminal Limited has made a name for itself offering fast and supremely flexible service to global shipping line customers, the masters of the largest containerships in the world. Halterm Limited is located in Halifax, Canada, a harbour with natural deep water and a perfect location to handle ultra large container ships with a terminal capability as yet unmatched by other east coast ports. Ashley Dinning, the current CEO and Managing Director of Halterm Limited, has been in the industry for 37 years and has worked all 112

September 2014

over the world. With his Business Degree, focused on Transport & Logistics, and an MBA in Maritime Management he has studied at Harvard and UCLA, bringing a deep industry knowledge and expertise to the role at Halterm. Sustainable Investments To stay ahead of the competition, Halterm Container Terminal Limited has spent 20 million dollars in the last year to install two new container cranes. These cranes can handle the largest container ships in the world and set new standards in safety and energy efficiency. They

CANADA

are also cheaper to maintain. With ships steaming slower to conserve fuel as prices continue to rise, ports are under increasing pressure to provide faster turnaround times and with these new cranes, Halterm is in position to discharge and load vessels at the rate of 30 containers per hour per crane, or a massive 120 containers per hour with all four cranes working simultaneously. Technological advances have also played a role in the success of Halterm. Dinning explains that every truck that arrives with a container passes through a building lined

with camera arrays designed to capture images of the truck and its cargo from every angle. The cameras also identify the container number and the license plate of the truck so that when the truck moves forward to the Scale, or weigh station, Haltermâ&#x20AC;&#x2122;s terminal operating software has already updated the container records allowing for faster processing at the gate. â&#x20AC;&#x153;The unique thing for us is that while in other terminals here in Halifax and across North America, all the cameras are sitting out in the open, ours are protected by purpose-built shelters, so when it is raining or snowing our w w w. h a l t e r m . c o m

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H A LT E R M L I M I T E D

Ron Twohig Operations Manager

cameras and equipment maintain the efficiency of our gate processes and the trucks continue to roll, despite bad weather,” Dinning explains, “This sets us apart from our competition.” Allied to the physical redevelopment of its gate processes Halterm has also installed brand new terminal operating system software so that the company and its customers can manage the container inventory and track crane and truck movements in the yard more easily. With the new software, Halterm is operations ready, offering guaranteed berth, crane and labour to its customers whenever a ship arrives. To help keep to this guarantee, an extensive preventative

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maintenance program is in place and equipment is kept at a high state of readiness to meet customer demands. The company has a very quick turnaround time for trucks in the container yard as well, averaging 18-20 minutes from the time of arrival to the time of truck departure. Compared to reports from other terminals in North America, where average truck turnaround time might be held at about an hour, Halterm offers customers clear advantages. People Management and Safety In addition to implementing a series of changes to how Halterm monitors its operations, Dinning has also expanded the employee pool to strengthen the overall skill set of the company. “I’ve created new positions here within the facility and brought leaders in their fields from all over the world to fill those positions,” Dinning continues, “By bringing in a mixture of those with talents among the existing skill sets and those with alternative experience we are actively developing our team and can actually instill new methodologies and operating practices here.” Halterm is proud of the wealth of experience among its many longservice employees and together with the mix of new people that have worked all over the world, has a great formula for supporting service delivery to its customers. Safety is also a key focus of the organization. Dinning describes one particular piece of equipment Halterm offers to increase safety in the

Ashley Dinning CEO Managing Director

“By bringing in a mixture of those with talents among the existing skill sets and those with alternative experience we are actively developing our team and can actually instill new methodologies and operating practices here”

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H A LT E R M L I M I T E D

Snow Clearance

workplace and on the highways. He states, “We don’t want a truck leaving here with snow and ice on top of the container because it could present a real hazard if it starts to break loose as the truck is moving. To address this we have installed a snow clearing machine that truckers can use as they are departing the terminal to plow snow and ice from the roof of the container so when it joins the highway it’s as safe as it can possibly be.” Halterm continues to focus significant effort on developing its safety culture and promoting safe working practices on the waterfront.

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CANADA

Continuous Improvement Halterm continues to grow because it maintains a positive relationship with the waterfront Union in Halifax, the International Longshoremen’s Association, and Dinning states that “they also value our mutual customers and are focused on understanding and meeting customer expectations.” In the last few months, the top three shipping lines in the world, Maersk Line, CMA CGM and MSC have all looked to develop larger operating alliances and Halterm is a main operating facility for two of these carriers, Maersk and CMA CGM. The company also partners with ZIM Integrated Shipping Lines, Eimskip and Melfi for mainline operations, supported by Oceanex Shipping and TMSI on the critical regional trades. Over the next three years, Dinning forecasts more than 30% growth for the company. He explains that “our three key business goals are business growth, aggressively creating commercial opportunities to generate sustainable long term value, process excellence, driving cost out of the business through operation efficiency and strategic investment, and driving performance, developing and maintaining a highly skilled commercially oriented team with a sense of urgency and a desire to play to win.” Halterm encourages its’ workforce to employ these goals and use them as their drive to provide the quality service the customers expect.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Halifax, Canada FOUNDED

1969 EMPLOYEES

150 PRODUCTS/ SERVICES

Stevedoring; Warehousing; Logistics

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Videojet Technologies In

Offering Top of the Line Code a World Leader in Coding an

Director of Product Management and Systems Solutions, J Videojet Technologies Inc. has grown to become a world le technology offers high quality Code Assurance to custome Written by: Lindsey Ryan

Produced by: Michael Magno

nc.

e Assurance as nd Marking

John Nobers, discusses how eader and how their innovating ers

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VIDEOJET TECHNOLOGIES INC.

High resolution Videojet Thermal Ink Jet Printers meet code requirements in pharmaceuticals and other industries

“What our software does is to help ensure not only that you’ve selected the right code for the product, but it also tells each downstream printing operation the exact code to put on the bottle or the aggregate case set. As a customer, you can trigger your 120

September 2014

line from one printer. You don’t have to set up another printer or punch in another number. Our software automatically sets Code Assurance in your line,” states Nobers. This provides a great value to customers both in their productivity and

USA

Videojet Technologies Inc. is a worldwide leader in the product identification market. They offer coding and marking solutions to customers and with over 3,000 employees and thirty direct operations around the world, Videojet provides all regions with high quality service and code assurance. Code Assurance is the Videojet comprehensive approach to centralized message management and printing control to ensure the right code is on the product or primary package and matches the secondary package, and so on through production, to confirm that shipments are labeled and packaged correctly time after time. Director of Product Management and Systems Solutions, John Nobers, explains the importance of Code Assurance in all industries and how Videojet offers exceptional services by listening to customers and assisting them in determining the best solution for their specific business. Nobers explains that “the challenge for us is that we are always looking

to enable a customer’s solutions in whatever industry they may be. Our goal is to understand a customer’s needs and help them choose the right coding technology for their packaging.” Offering Dependable Code Assurance So how does Videojet ensure Code Assurance for their customers? By focusing on some of the main challenges customers have in their coding processes, Videojet can accurately identify the solutions that best meet customers’ objectives. Since customers are always looking to provide the best for their customers, they’re looking for high code quality and productivity to make sure the right code is consistently in the right place on the right product at the right time. Videojet can offer this because their printers are designed to provide low maintenance, low intervention and high uptimes, which allow for less downtime on customers’ lines and longer run times between preventive maintenance. Videojet.com

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providing a better value. There are many opportunities for a system to fail in a production line, so Videojet prides itself on maintaining reliability. Videojet has developed technology that can identify when there is a problem within the production and notify the customer so that continued coding errors do not appear on the products. Nobers explains, “We make sure that our customers’ products are getting the marking and coding they need for

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their products and if they aren’t, our printers have the ability to provide warnings or auto shut-downs to alert the customer to take action.” Global Launch of the Videojet 9550 Print & Apply Labeler Recently, Videojet launched its newest labeler the 9550. This new innovation helps the customer reduce downtime and reduce the cost of ownership for parts while offering incredible ease of use. The ribbons on the label reels can be changed in less than 60 seconds. “That’s the type of innovation we bring to the market,” Nobers proudly states. “It’s strengthening an area where we listen to our customers when they need more. That’s the type of innovation and investment we use to bring more value to our customers and help them advance their product lines.” The 9550 was launched the first week of May and has had great success since this global launch. Continuous improvement Videojet focuses on a number of LEAN manufacturing continuous

VIDEOJET TECHNOLOGIES INC. improvement processes and employs them throughout the company’s business, whether it’s in the product development process or their manufacturing system. Employees go through a training program to incorporate LEAN best practices and are trained in Problem Solving Processes (PSP) so that they can best assist customers in getting to the root of the problem to create an effective resolution that has the greatest impact. Nobers explains that there are three very important objectives to Videojet as a company: listening to customers, enabling solutions for customers, and continuing this listening and enabling to bring value to customers’ businesses and provide the best marking and coding solutions worldwide. “We listen to our customers. I think that’s the most important thing. We listen and we take that information and turn it into value for our customers. And then within our own business, we’re always trying to optimize our process and execution. It’s critical to bring that value to our customers and re-invest in the markets and businesses that we’re in,” says Nobers.

USA

Company Information INDUSTRY

Coding and Marking HEADQUARTERS

Illinois FOUNDED

1960s EMPLOYEES

3,000

Videojet.com

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Transcity Joint Venture Way Project:

Crafting a Legacy in Brisban Councilâ&#x20AC;&#x2122;s Legacy Way Projec

Construction on the Legacy Way Project started in 2011 an improvements and innovations throughout project delivery Written by: Laura Close Produced by: Nick Ledue

- Legacy

ne: Brisbane City ct

nd has seen many design y. 125

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Excavation works for Brisbane Botanic Gardens Mount Coot

LEGACY WAY IS part of Brisbane City Councilâ&#x20AC;&#x2122;s long-term plan to improve travel across Brisbane, Queensland. The Legacy Way tunnel, the fourth of five TransApex projects, is currently under construction. It will connect the Western Freeway at Toowong with the Inner City Bypass (ICB) at Kelvin Grove. The benefits of the project are wide-reaching, but the biggest will be its effect on the traffic in that area of the city. By providing an alternative route for Western Freeway traffic travelling to and from the ICB, Legacy Way will 126

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almost halve peak period travel times between the Centenary Bridge and the ICB. The project will also reduce traffic on Milton Road and Coronation Drive and reduce through traffic on some local streets. While construction is taking place, Transcity has made it a priority to significantly reduce the construction footprint and the impact construction has on the neighbouring residents and areas of environmental significance, like the Brisbane Botanic Gardens at Mount Coot-tha. Transcity is the combination of three companies, a joint venture

AUSTRALIA

Legacy Way tunnel boring machines

between Brisbane’s local civil engineering and construction experts BMD Constructions (BMD), Italian tunnelling specialists Ghella, and Spanish tunnelling and civil infrastructure giant Acciona Infrastructures. These three companies joined together in 2010 for the work on the Legacy Way project.

Legacy Way Project Construction on the Legacy Way project began in 2011 and is scheduled to be completed in 2015. The contract Transcity has with Brisbane City Council states that the company will also be responsible for tunnel maintenance for 10 years after the completion of the project. The project consists of the

“The tunnel is probably one of the most advanced tunnels in traffic control and traffic safety. The safety system is the most advanced that you can find anywhere in the world now.” w w w. t r a n s c i t y j v. c o m . a u /

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T R A N S C I T Y J O I N T V E N T U R E - L E G A C Y WAY P R O J E C T construction of 4.6 kilometre twin tunnels – two tunnels with two lanes in each direction. One of the tunnels will direct traffic west to the portal at Toowong, the other to the east portal at Kelvin Grove. Excavation for the tunnel began in August of 2012 and took less than 10 months for both machines to get from one end of the project to the other. “It’s a four year project, so it is very sensitive to the community,” said Project Director Jose Antonio Sanchez, a civil engineer with 27 years’ experience, who’s

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working on the project. “That has been one of the key items, the key focus from Transcity and the project as a whole during construction, to minimise impacts on the surrounding community and environment.” Transcity is responsible for all construction activities during the period of the project, including civil works, tunnelling and mechanical and electrical fit out. The company has self performed most of the activities and implemented a mechanical and electrical alliance for the fit out process. Strategic Management of Project The project has seen a large workforce – over 7,600 people have participated in the safety inductions for the site. At the peak of construction, the work sites saw around 1,100 workers, but the current workforce is closer to 650 to 700. The mechanical and electrical workforce number is around 340 just on its own. There are four distinct sites to the Legacy Way project including – the western worksite, tunnel alignment, eastern worksite and the

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Moggill Road/Western Freeway interchange project. Construction takes place on all four sites year round, but Transcity is restricted to night work on the majority of sites that impact the road network so the construction efforts interfere as little as possible with the travelling public. Tunnelling and underground fit out work can take place 24 hours a day. To keep things orderly in the construction zone, Transcity has their own logistics team on site which manages the delivery of supplies and materials throughout the site and to work areas. Because of the nature of the project, the teams have restricted workspace, which causes some issues. â&#x20AC;&#x153;We have a very restricted worksite when it comes to space, so we donâ&#x20AC;&#x2122;t have the advantage to bring a mass of materials and store them on site, we basically have to bring things in as they are required,â&#x20AC;? said Chris Brett, Construction Manager. There is also an in house procurement team that shares all updates and important information with the different parts of the team. With a project this large,

challenges in communication are inescapable. Sanchez shared that having different workers with different levels of expertise in different fields has led to challenges in communication between the different crews. With their on-site management however, these challenges have been few and far between, and usually resolved quickly. Transcity has also made a concerted effort to eliminate the impacts the community and environment have experienced. By working with the Brisbane City Council to minimise these impacts, Transcity has been successful in maintaining a positive working relationship with those impacted during construction. Electrical and Mechanical Fit out The project is currently full speed ahead with the electrical and mechanical fit out, which began in February of this year. Transcity has made an alliance with the mechanical and electrical contractor RCR, which is based out of Perth in Western Australia. The work on this stretch of the w w w. t r a n s c i t y j v. c o m . a u /

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Mechanical and electrical fit out gantry

project includes compounding a set of systems that will provide full operational functionality to the tunnel, including fire systems, ventilation, traffic control systems and lighting. “The tunnel is probably one of the most advanced tunnels in traffic control and traffic safety,” Jose

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Sanchez shared. “The safety system is the most advanced that you can find anywhere in the world now.” Technological Innovations on Site Transcity has been responsible for several innovative solutions to restrictions and challenges on the Legacy Way tunnel project.

CONSTRUCTION

For example, the original design had the tunnel alignment affecting the surrounding roads, roundabouts and parks in a big way. The design included a lot of cut and cover structures, which were going to have to be built on the same existing road alignment. Traffic patterns had the potential to be thrown into chaos.

The team at Transcity worked with the design to come up with a largely offline alignment, changing where the entrances and the exits to the tunnel were to be built. Because of this alteration, 90-plus percent of the project can be built without affecting existing traffic alignments, and has had little effect on the travelling public.

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TBM Disassembly

Another crafty solution Transcity developed during construction was an alternative way to move the spoil from tunnelling. Originally the company was going to build an overland conveyor to send material to an existing bank of a nearby quarry, which Brisbane City Council owns and operates. The crew developed a better idea however â&#x20AC;&#x201C; better than running the spoil above ground through the Botanic Gardens, creating noise and environmental issues. Instead, the team built an underground tunnel from the 134

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worksite to the quarry and conveyed all of the materials produced by the tunnel boring machines (TBMs) and stockpiled it there. The TBMs were an issue as well. Because of the restrictive space, Transcity had to get creative with how the TBMs were brought to site. Instead of bringing the fully-formed machine to the site, the TBMs were assembled at the west end of construction in a 75-metre long open trough structure. Overhead was a large craneage system that assisted with the build process. There was a lot less space at the

AUSTRALIA

east end of the job, and there was the existing issue of a carriageway that wasn’t due to be moved until later in the project. Disassembling the TBMs was done with the help of a hydraulic jacking system, which allowed the guys who did the tunnelling to disassemble the TBMs within the existing cut and cover structures.

Company Information INDUSTRY

Construction HEADQUARTERS

Brisbane Botanic Gardens Mount Coot-tha The Brisbane Botanic Gardens Mount Coot-tha are located at the western end of the tunnel. Part of the bid for the project included that the design for the tunnel at the western end would form part of an expansion to the Gardens. The reinstatement of the Toowong worksite will be the largest upgrade to the Botanic Gardens since they opened in 1970, and includes a kitchen garden, amphitheatre, forest walk, playground and an 18 megalitre lagoon to help drought proof the Gardens. The expansion will also feature a range of attractions for visitors including lagoon walks and a new events lawn with amphitheatre seating Completion of the tunnel project is little less than a year away. “We’re always concentrating on the lessons learned as we continue with construction,” Brett commented. “Construction solutions from the beginning of the project have influenced our decisions through the rest of the project, and will continue to do so until the completion of the tunnel.”

Toowong, Australia FOUNDED

2010 EMPLOYEES

230-380 PRODUCTS/ SERVICES

Transcity is the combination of three companies, a joint venture between Brisbane’s local civil engineering and construction experts BMD Constructions (BMD), Italian tunnelling specialists Ghella, and Spanish tunnelling and civil infrastructure giant Acciona Infrastructures. These three companies joined together in 2010 for the work on the Legacy Way project.

w w w. t r a n s c i t y j v. c o m . a u /

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John Holland Rail

Building Infrastructure and Comm

GM of Operations Richard Stewart discusses John Holland the corporate culture that helps the business and its comm Written by: Sasha Orman Produced by: Nick Ledue

munity

d Railâ&#x20AC;&#x2122;s most recent projects and munities thrive

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John Holland Rail track services

WHEN YOU THINK of railways in Australia, you may think of John Holland Rail. As the owner and operator of 30 percent of Australia’s government- and corporate-owned railway networks, as well as the owner and operator of the largest and most technically advanced fleet of railway maintenance and construction equipment, John Holland Rail is 138

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the largest private operator of the infrastructure in Australia. With specialization in everything from planning and construction to maintenance, John Holland Rail offers a complete approach to railway infrastructure that sets it apart from the competition. “I do believe it is a very unique value proposition in the market – there are

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railway operators, railway maintainers and railway constructors, but there is no other company that offers that full life cycle,” says Richard Stewart, General Manager of Operations at John Holland Rail. “We self-perform, and we have a very large in house engineering and project management capability. We have 2,500 John Holland people working on railway projects at the moment and another 4,000 subcontractors. So we are a large employer, and people are really at the center of our values.” Moving Projects Ahead with Efficiency As a major force in Australia’s railway industry, John Holland Rail’s portfolio is full of complex and vital projects significant to the country’s development – projects like Perth City Link. “If you’re familiar with Perth, its central business district is basically split right down the middle by its railway lines – Perth Central Station sits between an area called Northbridge and the actual business district of the CBD, and over the years it’s created a bit of a divide in the city,” says Stewart. With the Perth City Link project,

John Holland Rail succeeded in the daunting task of bridging that gap while keeping Perth’s commuters moving in the meantime. “The Perth City Link project was about sinking a section of the Fremantle rail line underground, so that the land above could be developed, effectively bringing the two parts of the CBD together,” says Stewart. “It was a very complicated project because we had to keep Perth Station and the train network operating all the way through the project. That meant several rail slews to divert the existing railway into temporary lines to open up areas we needed to work in to build a new cut and cover tunnel and railway infrastructure underground. That’s an exciting project, and I think it’s really changing the face of Perth CBD forever for the better.” Other notable recent projects from John Holland Rail’s portfolio include the Southwest Rail Link to connect new homes in Sydney and prepare suburbs for further development; the $4.5 billion Victoria infrastructure project – Regional Rail Link - that has John Holland completing two of six segments, the Southern Cross Station and the City to Maribyrnong w w w. j o h n h o l l a n d . c o m . a u

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JOHN HOLLAND RAIL River sections; and the recently completed Sydney Inner West Light Rail extension, which doubled the size of Sydney’s light rail system by adding nine new rail stops between Lilyfield and Dulwich Hill . “A key thing to note is that they have been completed significantly ahead of schedule,” says Stewart, explaining that the company utilizes an array of efficiency techniques, including modulization and prefabrication offsite, to meet these goals. For its Springvale Road Rail Alliance project, for instance, John Holland Rail engineers were able to condense a projected nine months of weekend work down to a finished project in 20 days back-to-back while still maintaining the needed quality of work. As with any industry that can potentially cause disruptions and disturbances in the lives and schedules of everyday citizens, John Holland Rail recognizes the importance of meeting and exceeding schedule projections. “When you’re causing these disruptions to local communities, the quicker you can get out of there and let them get back on with it, the better it is. I think we’re well recognized for achieving that that

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among all the communities in which we’ve worked.” Focusing on People Railway construction may be John Holland Rail’s business, but the factor that drives that business is the people behind it. “Our tagline is ‘Powered by People’ – I think that is really the sentiment of our values,” says Stewart. “Innovation and care are two of our core values, and we are really connected to enhancing the wellbeing of all our people.” The best way to protect your employees is by offering them a safe work site, and John Holland Rail is committed to safety. “We have an unwavering commitment to safety – safety is at the heart of what we do,” says Stewart, noting that the business has developed powerful strategies to meet mandated global safety requirements. “All of our projects must ensure that they are meeting those requirements as absolute minimum standards. Our people are very clear about our expectations in relation to safety, and that is strongly supported by leading indicators.” It is through these strategies that John Holland Rail has reached such achievements as a w w w. j o h n h o l l a n d . c o m . a u

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JOHN HOLLAND RAIL lost time incidence frequency rate of 0.08 per million man-hours. Building Communities But this focus on people does not solely apply to its employees, either – John Holland Rail is also committed to positively impacting and improving the communities in which it builds. “Community relations are something we’re very strong on,” says Stewart. “All of our projects have community initiatives embedded in their delivery – things like assisting skills within the local communities near projects

we’re working on, working with local community groups on initiatives that they’re looking to implement, and aiding healthcare organizations and local care centers. We spend millions of dollars per annum initiating these projects and monitoring them as part of our monthly board review.” John Holland Rail boasts several examples of this community outreach activity, including the work that its staff did at a neighboring elder care facility while conducting work on its Cronulla rail line upgrade and duplication

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project. “We were duplicating a line from Sutherland to Cronulla, and we had a project office at Sutherland and those project offices were next to an aging care center,” says Stewart. “Our people on that project dedicated their own time to do some landscaping of the aging care home grounds, updating the kitchen and retiling, as a ‘thank you’ for putting up with us being next door to them for an extended period of time.” John Holland Rail workers have achieved a number of successful community initiatives, from raising $150,000 in donations for New South Wales-based children’s hospice care facility Bear Cottage to partnering with Camp Australia for a two-day program over school holidays for children of workers on John Holland’s South Morang Rail Extension project. “It was a very simple initiative, but one that was very powerful,” says Stewart. “We brought the kids in to a designated safe area within the construction site, introduced them to engineering and construction as a career and gave them backpacks filled with goodies including a children’s hard hat, vests, disposable cameras so that they could take pictures. We got some

different games going on, and were just trying to give a little back to the community – looking after kids for a couple of days during the school holidays, so that parents didn’t have to worry about child care for those days.” John Holland Rail also works extensively to promote diversity, from its commitment to increase female participation to 20 percent by 2015 to its extensive work with Australia’s indigenous communities through such projects as its Career Tracks Strategy. This program in particular works to provide education and training opportunities for indigenous peoples, especially those in rural areas. Stewart cites the company’s Roy Hill Rail program in Pilbara, Western Australia – a 390km railway running from the Roy Hill mine to Port Hedland – as a prime example of John Holland outreach. “There we have three groups we’re working closely with to see how we can leave a legacy there for those communities,” he says. “We also look to partner with local indigenous companies and work with them to help train them and get them up to the level we need to be able to work for us – and hopefully lead a legacy for them to continue working w w w. j o h n h o l l a n d . c o m . a u

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Work on the Regional Rail Link in Melbourne is progressing well.

with others when we move out of the area when our projects are complete.” A Legacy to Uphold “John Holland is steeped in culture,” says Stewart, noting that the company has recently turned 65 years old. “Our founder John Holland was an incredible person – an engineer who 146

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served in the Special Forces during WWII, he really brought the values to the organization. That legacy still lives on in every one of our projects That pride in a job well done and a community linked closer together shines through in John Holland’s people to this day. “That’s one thing

JOHN HOLLAND RAIL

AUSTRALIA

Company Information INDUSTRY

Supply Chain, Rail HEADQUARTERS

Melbourne, Victoria FOUNDED

1949 EMPLOYEES

1,600 REVENUE

$1.4 Billion PRODUCTS/ SERVICES

Rail Construction Projects / Infrastructure

I’m most proud of, that I get to be involved in some of these really life changing projects. To get involved at the start, when we come up with these concepts, and see them implemented and then to see the community taking them up – there is a lot of pride in me and the team to e able to see what we’ve done.”

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