Leveraging technology for transparent logistics
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SCT LOGISTICS:
Transparency and a commitment to service through digitisation WRIT TEN BY
OLIVIA MINNOCK
PRODUCED BY
ANDY TURNER
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SCT GROUP’S CIO SEAN ATCHINSON DISCUSSES HOW THE COMPANY’S JOURNEY TO DIGITISATION IS MAKING IT EASIER TO CARRY CARGO THROUGHOUT AUSTRALIA
W
ith 3,934km between Perth
joined by Sean Atchinson, a CIO
and Sydney, transporting
determined to bring technology to the
cargo across Australia is
fore and make digitisation instrumental
no mean feat. Since 1974, SCT Group has been providing an alternative logistics
solution where options were previously 04
in fulfilling SCT’s aim to provide open, transparent and efficient service across Australia. “Our growth has been achieved
few, and has grown to be the most
through a very focused approach to
efficient independent freight service
the business. In addition, more recently
in the country. Providing rail and road
there are only two major players in the
services hauling dry freight, refriger-
rail freight space: Pacific National and
ated and bulk cargo, the business
SCT,” Atchinson explains, praising
prides itself on openness and transpar-
Smith’s initial foresight in challenging
ency. It is also a company that, despite
the status quo of the nationalised rail
its substantial size and reach, cares
industry. SCT now provides logistics
about every single customer from the
services across the country and has
smallest business on its books to
a number of inland ports serviced next
world-renowned retailers like Aldi and
to mainline freight railways. In the past
Woolworths.
two years, SCT has opened two new
Founded by Peter Smith, SCT is still very much a family affair, with Peter’s sons Geoff and Glenn on the board of
inland ports: at Bromelton, Queensland and Wodonga, Victoria. “We are predominately one of the
directors and the founder himself
largest freight movers East-West, from
maintaining a keen eye on operations
Sydney all the way to Perth, transport-
as chairman. In 2015, the Smiths were
ing freight that contains white goods,
“That journey of transformation through a technology platform is now starting to pay dividends to the business, and year on year I’m successfully taking costs out of the IT business” — Sean Atchinson, SCT CIO
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“ I work with all staff – if we’re rolling out a new technology, we’re on the warehouse floor with them.We understand what they’re doing, how they’re using it and what they need to use it for” — Sean Atchinson, SCT CIO
as well as foodstuffs from dry all the way down to -24 degrees.” SCT moves all this and more across the length and breadth of Australia with a commitment to making logistics faster, easier and more efficient. From previously having a focus on road line haul that required two drivers to move it across the country, the business can now move a 1.8km train hauling 5,500 tonnes of freight across Australia in three days, all in one journey. In addition, the 300m-long Bromelton warehouse allows a train to run straight through it with no shunting required, so containers can be removed and wagons unloaded as smoothly as possible. “In the three-and-a-half years I’ve been with the company, there’s been so much growth,” Atchinson reflects. However, it hasn’t all been smooth sailing. Atchinson joined the company six months after it had gone live with its new SAP environment – a vital digital solution for many businesses, but one which SCT needed the CIO’s help to implement properly. “They were actually talking about getting rid of it: they’d had a very tough go-live and were relying on consultants to support the business for a number of months post go-live. There were major issues throughout the systemic processing of customers’ orders to invoicing.” Despite these teething issues, Atchinson w w w.sc t l o gi st i c s. com . a u
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CLICK TO WATCH: SCT BROMELTON LAUNCH VIDEO 09 had worked with SAP solutions through-
business, and year-on-year, I’m
out his career and wasn’t willing to give
successfully taking costs out of the IT
up on the world-renowned ERP
business.” Far from cutting corners or
platform just yet. “The transformation
laying off staff, these savings have
could have gone belly up, but working
been made simply by changing the
with some key support organisations,
way SCT operates.
as well as staff and executives right
“We’ve in-sourced our support rather
up to Peter Smith, we’ve kept SAP and
that outsourcing,” Atchinson explains.
turned the whole environment around.”
“We’ve also renegotiated with core
Fast forward to today, and proper,
partners and gone into new commer-
collaborative development of the
cial contracts which have allowed us to
platform is actually saving the firm
save money by utilising the technology
money. “That journey of transforma-
better than we previously have. For a
tion through a technology platform is
CIO, it’s a rare opportunity to come in
now starting to pay dividends to the
where something’s failing and be able w w w.sc t l o gi st i c s. com . a u
to turn it around.” Through Atchinson’s work and senior leadership support, technology has been successfully brought to the fore of SCT and
1974 Year founded
is embraced as a driver – almost literally – of the logistics giant’s growth. “We’ve recently introduced new technology in all of our trucks which allows us to do electronic work diaries for our drivers and fatigue management. Drivers can now control their breaks without having to go through the paperwork.” In addition, technology is used to allow trucks and deliveries to be tracked more effectively and SCT is looking to move electronic 10
delivery and pickup management onto a new platform which will integrate better into cabs and carry all the information necessary for a fleet, using a single SIM card per vehicle. “The ability to have a single SIM that controls the phone, telematics and tablets in our trucks will have paid for itself within three years just through telco savings,” Atchinson enthuses. As well as making life easier for staff, a customer reporting platform has been introduced to bolster SCT’s commitment to service. “We’ve rolled out a customer reporting portal which allows our customers to track all the movements of their freight. We notify them when we’re going to pick up and they can see it online in a report to the time that it has been delivered, as well as being provided
1,000+ Approximate number of employees
with proof of delivery.” Atchinson
transparency of data,” says Atchinson.
explains that all this is done in almost
“It’s there at their fingertips, allowing our
real time – or around four seconds
account executives and customers to
behind our core platform.
talk in exactly the same language.
Now, looking to trade electronically with national customers in the B2B space, SCT is also developing a B2B
We’re looking at exactly the same pieces of information.” A common worry related to automa-
template based on GS1 – the global
tion is that the human touch will be lost
developer of business standards for
but Atchinson is keen to point out that
communication such as barcoding.
this won’t be the case for SCT. “We
“We’ve worked very closely with GS1
haven’t removed the account execs.
and also our members within that
The customer can do self-service and
environment.”
still have face-to-face contact. SCT
One of the most important things to
prides itself on this. This relationship is
ask of any digital transformation is what
absolutely key for Peter – that’s how he
it will mean for the customers involved.
built the business and that mentality
“It’s tracking; it’s all of their history; it’s
still exists today. We still have that very w w w.sc t l o gi st i c s. com . a u
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personal approach, but technology
they’re doing, how they’re using it and
is an enabler to allow transparency
what they need to use it for. Feedback
between customers, account execs
from those at the forefront of what has
and account managers.”
been rolled out is critical to any
In terms of finding the right digital solution to help SCT grow, transparency with both staff and vendors is key.
success that a technology platform provides to the business.” In the coming years, growth at SCT
“We run roundtables regularly,” says
is set to take many forms across its
Atchinson. “It’s very consultative. I work
divisions from property and rail to solution
with all staff – if we’re rolling out a new
enablement. “We’re looking to remove
technology, we’re on the warehouse
a lot of the manual steps and provide
floor with them. We understand what
technology that supports growth and
“We still have that very personal approach, but technology is an enabler to allow transparency between customers, account execs and account managers” — Sean Atchinson, SCT CIO
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supports a mission with our customers
ache) to an integral driver of growth
to provide further transparency on their
and service excellence for the company.
end-to-end moving of freight. My focuses
“Now, if I speak to the board it’s about
right now are expanding IoT across our
what we’re going to do next. It’s about
transportation methods – movement into
looking forward,” he concludes. We
cloud is key. As we grow, our technology
want to build on what we’ve got. We’ve
platform will allow us to upscale, pretty
got sustainability, we’ve got perfor-
seamlessly, our hardware.”
mance, we are enabling our business.
It’s clear that even throughout
“The conversation has completely
Atchinson’s own journey at SCT Group,
changed. It’s not about ‘time to throw
technology has gone from being an
it out’, it’s about ‘we want to do this
add-on (and indeed at times a head-
with our business’.” w w w.sc t l o gi st i c s. com . a u
SCT Group (SCT Logistics) 7 Westlink Ct, Altona, VIC 3018, Australia T +61 3 9931 5333 | www.sctlogistics.com.au