Supply Chain Digital - August 2014

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A u g u s t 2014

TtOsoPu1rc0ing

Ou Destinations

IMPROVE CYBER SECURITY

Information sharing and balancing risk

The Calor Gas Efficiency Drive WHERE’S YOUR CARGO?

Road freight tracking from Omnitracs

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EDITOR’S COMMENT

Staying on track for August T H I S M O N T H S E E S T H E word ‘track’ elevated to

buzzword status; whether that be in terms of keeping a company’s spend control on course or discussing track and trace technology, product traceability and the like.

Our front cover feature showcases the well-known brand of Calor Gas, who has a long and illustrious history stretching back before the Second World War. We detail the firm’s recent shift in procurement practice with the appointment of Kevin Wing.

We have expert comment from Farzad Henareh, European Managing Director of Stericycle ExpertSOLUTIONS in our logistics sector and Jim Sassen, Senior Manager of Product Marketing at Omnitracs asks us ‘Do you know where you cargo is?’ in the SCM sector.

Bringing up the rear is a nifty article on how to improve cyber security and of course the trusty top 10 return, this month profiling the decagonal group of foremost outsourcing destinations.

Sam Jermy sam.jermy@wdmgroup.com 3

CONTENTS

FEATURES

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Technology

Do you know where your Cargo is?

8

TOP 10

Outsourcing Destinations

Logistics Product Traceability and Response Management

Krakow old city at night.

Market Square at night.

16 Supply Chain Management How to improve cyber security in your company

22

Procurement Calor Gas reviews its procurement practice to enhance efficiency

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CONTENTS

74

PRASA

86 TAM

48

World Duty Free Group

COMPANY PROFILES EUROPE

USA

48 World Duty Free Group

86 Transportation Association of Maryland Inc. (TAM)

60 Danya Foods

AFRICA

96 John Holland Rail

74 PRASA

AUSTRALIA 96 John Holland Rail

AMERICA LATINA 110 CNDC Association

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LOGISTICS

Product Traceability and Response Management We speak to Farzad Henareh, European Managing Director of Stericycle ExpertSOLUTIONS, to get the inside track on how to quickly and efficiently trace goods, and execute product recalls W R I T T E N B Y: S A M J E R M Y 8

August 2014

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LOGISTICS

WE ALL KNOW how a supply chain is supposed to work, but what happens at the point when a crisis hits the floor? A product may well get to the end customer on time with good speed of delivery, but there needs to be effective product management when goods are faulty or broken.

This is where the need for specialists in executing recalls comes in; a particular department or organisation set up to operate within the continuing globalisation of the supply chain, assisting with multi-national product 10

August 2014

recalls.

The substantial growth brings a need to focus on products, in terms of both consumer safety but brand protection too.

We see companies growing into the international space, totally geared up to bring a certain product into the market. They have their whole supply chain and logistics in place but they are not geared up to manage a reverse logistics process which is not simply walking back to the start of the supply chain process. They are not geared up

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

Companies have their whole supply chain and logistics in place but strangely, are not geared up to manage a reversal of that process

to manage a crisis situation.

Farzad Henareh is the European Managing Director of Stericycle ExpertSOLUTIONS and is an expert in this field of reverse logistics. His company manages 500 recalls a year and has executed close to 5,000 over the past seven years.

This is across all industries such as automotive, consumer products, pharmaceutical, medical devices and food. It assists companies and sets up a recall system from beginning to end.

Henareh said: “We have a

seven-step process which we call the recall life cycle, and we believe these are pretty much essential steps that should be used across the supply chain sector.�

The steps are as follows: 1. Recall preparation - Having a recall action plan and standard operating procedure, and help companies put that into place to review existing plans. Simulation/ mock recalls are set-up for companies so it can keep on top of 11

LOGISTICS

‘Am I going to get a replacement product?

Am I going to be reimbursed? Product recall experts help with that too by sending out vouchers and so on’

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August 2014

PRODUCT TRACEABILITY AND RESPONSE MANAGEMENT

the ongoing change in the supply chain and make sure companies are ready; 2. Consigning communication - Large products like cars is easy because owners are named, but most manufacturers do not know who their customers are. It is therefore hard to identify who the customers with the affected products are. ExpertSOLUTIONS quickly amass all that data and identify a list of consumers to reach out to. Then it reaches out to media platforms.

3. Notification - Once a company has identified its customers and captured the information, it puts contact centres in place and then sends out notifications- normally a one page leaflet explaining what to do. It sends them out in-house, email & text notification.

4. Response management - Once a notification is sent out you have to capture responses. Microsites are set up and the dealers get help too; 5. Product processing - The product, in most cases, has to be returned back and disposed of.

ExpertSOLUTIONS has its own product return facilities in Liverpool for example.

CASE STUDY MERCEDES-BENZ Approximately 252,000 Mercedes C300, C350 and C36 AMG models had to be recalled in May due to faulty trail lamp connectors. Oxidation can cause dimming or complete failure of the tail lamps, causing obvious safety issues.

6. Remedy management Consumers would be concerned if they have purchased an ineffective product and will ask questions such as- Am I going to get a replacement product? Am I going to be reimbursed? Product recall experts help with that too by sending out vouchers and so on.

7. Resolution - Whether a product gets recycled, disposed or repaired the customer needs to send it back in an overwhelming amount of cases so product recall companies have their own recycling and disposal facilities in place.

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LOGISTICS It’s an integrated solution that ExpertSOLUTIONS offer, and every industry has similar product recall steps.

Henareh added: “You will take the customers through a pleasant experience. It’s all about brand protection and brand loyalty. Although it’s a product safety issue, it’s also another touch point with your customer.”

The introduction of the European Market Surveillance Package is expected to improve consumer product safety. But even within Europe we see a difference between product safety standards because while they are the same regulations, these are a fact of national regulations.

Mandating countries like the UK and Germany have well-established standards and now other countries have to meet the same manufacturing standards as well. It equalises everything and gives a level playing field across Europe.

“We see a trend emerging over the last three years with an increase in voluntary recalls, as high as a 29 percent increase. It’s disproportionate- the main reason for that is the regulatory environment. It’s 14

August 2014

RESPONSE MANAGEMENT

CASE STUDY INDESIT/HOTPOINT DISHWASHERS The first week of July saw the recall of 330,000 potentially faulty dishwashers of the Indesit and Hotpoint brands, made between January 2008 and July 2010. The company identified a ‘low risk that a component fitted to a limited number of dishwashers’ may cause overheating and in rare cases a potential fire hazard.

one thing to have regulations in place but it’s another thing enforcing it” said Henareh.

One reason is the more stringent regulations and the impact of social media. Companies realise the importance of proactiveness with their customers and understand those customers will be more sympathetic if a recall is handled effectively and swiftly. We are set to see these trends evolve over the coming years.

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

How to improve cyber security in your company

By Peter Armstrong, Director, Cyber Security at Thales UK with contribution from Chris England, Director at Okta E D I T E D B Y: S A M J E R M Y 16

August 2014

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SUPPLY CHAIN MANAGEMENT SHARING INFORMATION with suppliers is the lifeblood of the supply chain function, but it creates a huge amount of security risks for any organisation.

Critically, cyber criminals have now started attacking the supply chain just as much as they target organisations directly meaning due diligence must be paid not only to companies own cyber maturity, but that of their suppliers.

Today a supply chain can consist

of tens or even hundreds of different suppliers, each of which provides businesses with another potential point of failure or entry point for a cybercriminal to attack. So the more security businesses can put behind the supply chain the better.

In 2011, leading defence contractor Lockheed Martin suffered a massive supply chain breach, highlighting the delicacy of major corporations and further reinforcing the need to solidify data.

‘Thales is at the centre of initiatives focused upon raising the cyber defence posture of the UK supply chain, particularly at the Ministry of Defence’ 18

August 2014

IMPROVING CYBER SECURITY

However, this is just one facet of the supply chain vulnerabilities. In the Critical National Infrastructure environments, particularly where there is a high degree of engineering content, there is a drive to take advantage of outsourced third party engineering service provision.

However, this drive to third party service provision extends the perimeter of vulnerabilities into the supply chain very directly. An organisation providing preventative maintenance and monitoring of equipment like back up diesel generators for example, mean that the resilience and business continuity vulnerabilities of an organisation taking advantage of these services are amplified.

Thales is at the centre of initiatives focused upon raising the cyber defence posture of the UK supply chain, particularly at the Ministry of Defence. Through its work with the Defence Cyber Protection Partnership, artefacts have been developed that allow organisations to rationalise at Board level the synthesis of specific threats.

In today’s digital economy, many organisations will need to use applications to track and manage distribution and provide a consistent experience to all buyers and suppliers.

Research by Okta showed that 70 percent of organisations surveyed are using portals comprised of multiple applications to engage with partners, customers and other external users.

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SUPPLY CHAIN MANAGEMENT As well as the risk of malicious attacks, there’s the risk of counterfeit products entering the supply chain or a loss of intellectual property caused by data leakage, whether intentional or accidental. In order to secure applications and the supply chain, businesses should consider using multifactor authentication, rather than relying solely on passwords to

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August 2014

authenticate users, in order to reduce the risk of unauthorised access.

Another way to safeguard applications is to provide a singleaccess point to all applications, such as a centralised portal. This enables businesses to quickly and easily automate all customer and partner user management functionality.

To secure against threats to the

IMPROVING CYBER SECURITY

‘As well as the risk of malicious attacks, there’s the risk of counterfeit products entering the supply chain or a loss of intellectual property caused by data leakage’

supply chain both from a management and technical point of view, there are several steps that organisations can take including classifying the security risk of the data and access points provided to suppliers, reviewing differing regional and industry compliance standards, and ensuring all regulatory requirements are met.

Best practice guidelines should be set to assess all existing and new suppliers before entering into a business relationship. For those organisations taking their first steps on this cyber maturity journey, adherence to and adoption of the UK’s Cyber Essentials Scheme is a very good first step.

Ultimately, suppliers who take it upon themselves to demonstrate the steps they are taking to comply with all necessary compliance regulations, are the ones that will have a unique selling proposition in highly regulated industries.

But only if all parties work closely together will organisations feel secure against the threat to the supply chain, with collective strength a critical component in the general increase necessary in the cyber defence posture of UK plc.

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PROCUREMENT

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August 2014

Calor Gas reviews its procurement practice to enhance efficiency The UK’s leading supplier of LPG, and now part of SHV energy, a global family of LPG companies, has been proactive in its approach to spend control and cost efficiency W R I T T E N B Y: S A M J E R M Y

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PROCUREMENT PROCUREMENT IS NO longer just deemed as a necessary corporate activity, but something that can lead to a more streamlined process at all levels of a business. Regular reviewing of a company’s procurement practice is an essential strategic function that helps improve an organisation’s profitability.

By identifying better sources of supply, raw material prices and costs can be reduced, thus leading to a more valuable product. There are also a plethora of digital, web-based applications to aid working practice and drive growth.

Calor Gas has been supplying

fuel to homes and industrial users since 1935, and is implementing the Wax Digital web3 purchase to pay (P2P) application to improve the management of its multi-million pound annual spend and drive further efficiency savings within its transport fleet and specialist field service engineering divisions.

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August 2014

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

Calor Gas supplies fuel for businesses Tasked with building a new procurement function from the ground up, Kevin Wing, Group Purchasing Manager at Calor identified the need for a specialist eProcurement solution as being critical to help the company optimise its spend control. Calor also wanted to negotiate more favourable terms with its suppliers to reduce

inventory level costs and reinvest these savings into the wider business.

Once Wing joined the business two years ago he conducted an analysis that identified the need for Calor to build on its existing strengths in key areas of the P2P landscape and drive efficient processes especially into the front end of the cycle. Compliance, 25

PROCUREMENT

Calor operates a mixed fleet of over 500 vehicles visibility of spend and processes were the focus points.

He said: “It was clear to me that we needed to introduce greater control, compliance and visibility across our purchasing processes. Web3 is a robust, integrated and highly intuitive solution that will enable us to achieve these objectives by providing us with significant efficiency savings and enhanced reporting.

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August 2014

‘By demonstrating high levels of engagement, the right solution fit and strong references throughout the selection process, Wax Digital stood out from the start as our preferred supplier’

CALOR GAS

from multiple product categories.

These requisitions will be subject to Calor’s strict purchasing approvals policies and, once approved, will generate purchase orders that are automatically uploaded to E1 and issued to the supplier.

The receipting of goods will also take place within web3, with receipt data written to E1 to allow for three-way matching of scanned supplier invoices, further reducing the time, complexity and costs associated with paper-based administrative processes. Web3 will initially be rolled out to Calor’s Transport and Force divisions.

Calor operates a mixed fleet of over 500 vehicles, ranging from 7.5 rigid cylinder vehicles up to 44 tonne “By demonstrating high levels of engagement, the right solution fit and strong references throughout the selection process, Wax Digital stood out from the start as our preferred supplier.”

Web3 will be integrated with Calor’s existing JDE Enterprise 1 finance system and will enable Calor employees to easily raise requisitions within an electronic supplier portal

Wax Digital web3 purchase to pay (P2P) application 27

PROCUREMENT

‘..one such area in particular was the need to simplify the processes surrounding large volumes of low value transactions and the ability to readily identify and purchase goods and services’ tractor units which are supported by a network of nine transport workshops throughout its major filling stations in the UK. It uses Lex Autolease to provide a fully managed service and some get hired through Charthire.

“Purchasing activity within Calor presented challenges in a variety of areas, one such area in particular was

Stakeholder input has helped

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August 2014

Calor Gas has a network of nine transport workshops throughout its major filling stations in the UK the need to simplify the processes surrounding large volumes of low value transactions and the ability to readily identify and purchase goods and services,” commented Wing.

Stakeholder input has helped keep communications flowing throughout the business, just by the process of osmosis. This constant

HOW TO VET SUPPLIERS

communication has assisted in open dialogue about cultural change needs and has moved purchasing compliance up the agenda.

With web3 in place, Calor will be able to introduce more effective spend control and centralised processes to reduce complexity and significantly cut processing time

and administration costs. Gaining improved reporting insight into its key areas of spend at line level will also assist the firm in negotiating more competitive prices with suppliers and allow authorised staff to more easily identify the goods they need, when they need them, to drive best value.

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TECHNOLOGY

Do you know where your Cargo is?

The importance of trailer tracking in the supply chain is discussed by Jim Sassen, Senior Manager of Product Marketing at Omnitracs W R I T T E N B Y: J I M S A S S E N 30

August 2014

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TECHNOLOGY TRUCKING AND ROAD freight is an integral and fundamental facet of the supply chain which connects the links and drives the entire process.

As such, optimising transportation is a key area of opportunity for supply chain managers to improve efficiency, increase revenue and maximise customer service. To do this, managers need detailed information about trailers, particularly location and whether they are connected or disconnected to a tractor, are loaded or empty and if they are secure.

Without constant visibility of trailers, managers are often challenged with serious issues such as temporarily lost trailers, an increase in cargo theft, reduced driver productivity while searching for empty trailers, inability to identify trailer detention issues, and the prospect of manually inventorying trailer location and status all of which clearly negatively impact return on investment (ROI) and partner relationships.

This is where trailer tracking systems emerge as a key tool, improving cargo visibility and ensuring shipments stay on course. Untethered tracking systems that continue to provide data on trailers even after being 32

August 2014

Constant visibility of trucking performance disconnected from the tractor help provide essential trailer information in a timely manner, and increase the chance of recovery in the event of theft.

Trailer Utilisation Trailer utilisation is an important metric that helps determine how efficiently trailers are being used to generate profits.

Since carriers are losing productivity

DO YOU KNOW WHERE YOUR CARGO IS?

the longer trailers are detained, supply chain managers can minimise trailer detention issues by having better visibility and data that identifies which customers or partners are exceeding detention agreements. Having this information also reduces costs.

Another important benefit is optimising trailer pool sizes for each customer or partner. Too large or too small pool sizes lower efficiency, drive 33

TECHNOLOGY

Manual data collection is extremely labour-intensive up costs and in turn hurt profitability.

Without accurate information about the location and status of trailers, it’s impossible to efficiently plan pool sizing and improve utilisation.

Trailer management systems provide data regarding these metrics so supply chain and logistics managers can accurately monitor and manage trailer status, as well as devise strategies to maximise trailer utilisation without sacrificing customer service.

These systems report location and status of trailers, including how long they are at a location, when trailers enter or exit designated areas and if 34

August 2014

they are connected or disconnected; alert when temperature thresholds are breached on refrigerated trailers and when trailer doors are opened.

The wealth of information provided by tracking systems improves efficiency in utilising trailers, reducing the need to purchase additional trailers in order to grow business, and lowers labour costs, particularly with monitoring trailer inventories.

Accurate, Timely Information Without a tracking system essential information about trailers such as location, identification numbers,

WHERE’S YOUR CARGO?

‘Manual data collection is extremely labour-intensive and expensive, is often inaccurate due to human error and does not yield timely information’

ownership and whether a trailer is full or empty, must be collected manually. Manual data collection is extremely labour-intensive and expensive, is often inaccurate due to human error and does not yield timely information.

Even if yard managers are diligent about conducting physical yard checks, the status changes frequently as trailers are moved.

A trailer management system resolves these challenges by accurately and regularly providing trailer data required for management to improve efficiency.

Depending on the specific product, 35

TECHNOLOGY

In-cab mobile computing platform tracking systems can provide time and date-stamped position reporting, connect and disconnect notification, and dwell times.

Some systems can also provide an in-cab mobile computing platform that improves visibility for both drivers and back offices, satellite mapping, and integration into existing dispatch software. This allows managers to better track shipments ensuring delivery is on schedule and enables communication 36

August 2014

to make any needed adjustments while the shipment is en route.

Theft Cargo theft is a serious concern for all shippers. Freight Watch International’s 2013 Global Cargo Theft Threat Assessment reported that the United States reached a new record volume in recorded cargo theft activity in 2012 with 946 incidents.

Not only do you lose your product

WHERE’S YOUR CARGO?

can erode efficiency, profitability and competitive standing. Trailer tracking management systems help maintain the integrity of the supply chain, particularly with shipping, an aspect often seen as a key area for loss of control and visibility.

Adopting or requiring such technology enables supply chain managers to have eyes on shipments at all times, improving customer service and enhancing transportation management to control costs and increase ROI. When deliveries are made on time and without incident, partners and customers across the supply chain remain happy.

load, theft affects indirect costs such as product replacement and higher insurance premiums.

With a trailer tracking system in place, managers are alerted when trailer doors are opened or if trailers enter unauthorised locations. If a trailer is stolen, tracking systems will report its location, which can be given to police, increasing the chances of it being recovered with cargo still intact.

Blind spots across the supply chain

Cargo theft is a serious concern 37

TOP 10

TOP10

Outsourcing Destinations Written by: Sam Jermy

Here, Supply Chain Digital details the foremost locations in the world in regards to outsourcing Krakow old city at night. Market Square at night.

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TOP 10

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Dublin, Ireland

Perhaps surprisingly, there is actually a thriving shared services centre in the Irish capital. Companies such as Facebook, Google, IBM, and Intel have set up outsourcing offices in Dublin. Statistically, the Celtic country has more than three times as many shared services masters as the global average and the country’s knowledgeable and highly skilled workforce is one of the Irish markets most powerful advantages.

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09

Krakow, Poland

Krakow has recently become a popular place for investments for many outsourcing companies.

It is estimated that there are approximately 16,000 people in such organisations, mainly young, well-educated professionals from the city’s universities. The Polish location is also the highest ranking outsourcing destination in Central Europe.

O U T S O U R C I N G D E S T I N AT I O N S

08

Cebu City, Philippines

Not quite as prolific an outsourcing destination compared to the Philippines capital city Manila, but Cebu is really starting to make waves nonetheless. Cebu City is now the world’s number one emerging global outsourcing destination based on the latest industry surveys.

07

Pune, India

Outsourcing business in Pune has been thriving due to its proximity to Mumbai, urban infrastructure facilities and large availability of skilled resources.

With nine universities and over 100 educational institutions, Pune has rightly been nicknamed “The Oxford of the East�. With all this going for the city, Pune is likely to remain cemented in the top 10 of this list.

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TOP 10

06

Hyderabad, India

A number of IT outsourcing providers such as Wipro, Accenture, Infosys, Mahindra, IBM, TCS, iGate and Satyam are all based in Hyderabad, with many more setting up branches in the city. It possesses the infrastructure and facilities able to sustain this increased presence of global companies too; being labelled ‘India’s hightech City’ goes some way to illustrating this.

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August 2014

05

Chennai, India

A relatively low cost of living and similarly reasonable operating costs has kept Chennai competitive as a top outsourcing destination in recent years. Companies such as Maersk, Phillips, Deloitte, Caterpillar, Red Hat, and Siemens have all set up in the Chennai vicinity of Tamil Nadu state and interest does not seem to be quelling.

Another strongly-performing outsourcing destination from India here.

O U T S O U R C I N G D E S T I N AT I O N S

04

Delhi, India

High-quality and cost-effective outsourcing solutions have been available in Delhi for a number of years now. The city’s attractiveness to large conglomerates and corporations lie in the fact it has excellent established resources and facilities and having a major international airport helps in a logistics sense too. This enviable reputation has seen software giants like Microsoft, Dell and Intel all flock to Delhi.

03

Mumbai, India

A range of Western banks and other multinational organisations have outsourced to Mumbai in the past decade, but the terrorist attacks of 2008 cast a dark shadow over the city’s future role in regards to outsourcing, as Western companies were said to be weighing up the risks of more attacks, not to mention the ongoing political volatility.

Mumbai has weathered this storm well though, and comes in at number three.

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TOP 10

02

Manila, Philippines

With a literacy rate of over 94 percent and English being taught in all schools, it is little surprise Manila ranks so highly as an outsourcing destination.

Foreign companies that are now outsourcing to the Philippines estimate a minimum of 30 to 40 percent business cost savings due to this labour availability.

O U T S O U R C I N G D E S T I N AT I O N S

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TOP 10

01

Bangalore, India

The undefeated location for outsourcing, Bangalore has been in the top eight in the world for a number of years now. Far from alone, amazingly there are another five Indian cities that make up our list. The country as a whole has benefitted immensely from the Internet boom and with the highest number of multinational IT, research and development, electronics and software companies, Bangalore is referred to as India’s Silicon Valley.

Bangalore has shown the highest growth record since the early 1990s, and with an embarrassment of employee talent available, it is no wonder the city is an outsourcing hub of the entire globe. With the university and around 21 engineering colleges, there are highly skilled workers available annually. The sprawling metropolis does not seem to be slowing down in any sense either.

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O U T S O U R C I N G D E S T I N AT I O N S

Bagmane Tech Park, Bangalore is a software technology park equipped with all modern class facilities and is surrounded by a lake near the entrance 47

World Duty Free Group Revolutionises

its Supply Chain to Meet its Global Needs

To become established in the relatively young travel retail industry requires a comprehensive and flexible supply chain operation which this global company continues to expand and master Written by: Matthew Staff Produced by: Craig Daniels

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WORLD DUTY FREE GROUP

Madrid Duty Free

W

MĂĄlaga-Costa del Sol Airport, Spain 50

August 2014

orld Duty Free Group has extended its global reach over the past eight years through its ever-strengthening industry reputation and some strategic acquisitions, and is now looking to capitalise on recent successes through equally global developments of its supply chain.

As a consequence, World Duty Free Group is in a better position than ever to continue its expansion through the tendering of new airport and terminal duty free stores moving forward, and with a logistics and distribution strategy more than capable of keeping up with the growth.

Justin Suter, Global Head of Supply Chain and Logistics at World Duty Free Group, said: “When bidding for airports, the whole supply chain and

S U P P LY C H A I N

Express Duty Free, Queen Alia International, Amman, Jordan

logistics operation is becoming more and more important because the authorities have really recognised the key role that an efficient system plays in the complex travel retail sector.

“They look at how good your supply chain will be and whether you’ll be able to get great onshelf availability and get new products to market quicker than others.

“The fact that we’ve got a good supply chain and have received a number of awards over recent years for the quality of our operation is becoming increasingly important.”

“The fact that we’ve got a good supply chain and have received a number of awards over recent years for the quality of our supply chain is becoming increasingly important”

Distribution strategy Distribution has been a key area of interest for World Duty Free Group in adapting to this growing

– Justin Suter, Global Head of Supply Chain and Logistics

w w w. w o r l d d u t y f r e e g r o u p . c o m

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WORLD DUTY FREE GROUP

Retail in Madrid

Food Society, Adolfo Suárez Madrid-Barajas Airport, Spain

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trend, with the company striving for consistent best practice, supply times and operational excellence, despite its widespread international presence.

“We’ve put in place our new strategy which is really focused around looking at the end-toend supply chain, from supplier to shelf, based on an analysis of the business, where our brand partners are, and where our airports are,” Suter said.

With 85 percent of all goods in its shops manufactured across Europe, the construction and development of a brand new distribution centre in Barcelona represents phase one of the three pronged approach that the company now takes towards its global distribution chain.

Suter continued: “Over the past 18 months, we have been investing in our new global distribution centre which is a significantly bigger operation than our previous one. This gives us the capacity we need to cater for our ever growing business, as well as the option to talk to our suppliers about using any of these channels without any logistics constraints.

“There will also be some instances where our brand partners will already have a distribution network set up, so it makes sense to continue to deliver directly in those cases. Conversely, where brand partners have a less developed supply chain or it makes sense for us to carry one point of stock, our global distribution centre allows our suppliers to scan and deliver everything into there

S U P P LY C H A I N

“..we have been investing in our new global distribution centre which is a significantly bigger operation than our previous one, giving us the capacity for the growth of the business…”

– Justin Suter

w w w. w o r l d d u t y f r e e g r o u p . c o m

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R d’H uba on n ne ur

20 13 /1 4

WORLD DUTY FREE GROUP

Madrid-Barajas Airport, Spain

“...you need to be able to order the right stock to be delivered into the country, but you also need quick replenishment from the distribution centre into the shops. Our target is to respond within 24 hours for all large airports” – Justin Suter

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and we will then deliver it to our stores around the world.”

Another development, as part of World Duty Free Group’s commitment to be as flexible and collaborative as possible, involves the establishment of consolidation platforms. These do not carry any stock, but provide the option of bringing numerous suppliers’ goods together and grouping them into full containers to further reduce costs and enhance efficiency.

Brand partnerships The diversity and complexities involved in travel retail differ vastly from traditional high street retail practices, with three different stakeholders pivotal to the business, in the form of the stores’ customers, the airport owners, and the brand partners looking to showcase their goods in the shops.

WORLD DUTY FREE GROUP

This makes a consistent global model all the more important, especially considering that a large number of World Duty Free Group’s suppliers, or brand partners, are similarly global, and are often bigger than the travel retailer itself.

“Typically our big suppliers are the likes of Diageo, L’Oreal, Estée Lauder Companies, Chanel etc, who often have their own travel retail sector within their business,” Suter said. “These kinds of partners see travel retailers like us as the window to their ideal customer market.

“So in the case of Chanel for example, a typically affluent demographic who can afford to travel frequently represents exactly the audience they want to have a conversation with through our shops.”

With more than 120,000 SKUs, the company is now a pivotal cog in its brand partners’ marketing

S U P P LY C H A I N

Vancouver Airport, Canada

w w w. w o r l d d u t y f r e e g r o u p . c o m

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WORLD DUTY FREE GROUP

strategies, especially in the beauty industry where the industry particularly thrives.

To cater for the diversity in goods, cultural differences in product trends and the different timeframes needed to transport goods to its stores, World Duty Free Group has paid special attention to honing its forecasting and replenishment (F&R) system.

Suter explained: “We have invested a lot into a leading class F&R system because you need to be able to order the right stock to be delivered into the country, but you also need quick replenishment from the distribution centre into the shops. Our target is to respond within 24 hours for all large airports.�

Retail in Madrid 58

August 2014

EUROPE

Company Information INDUSTRY

Travel Retail HEADQUARTERS

Madrid FOUNDED

1955 EMPLOYEES

8,500

Global expansion To set itself apart in this dymanic industry requires not just a world class service and accompanying supply chain strategy, but the right personnel too and this is something that World Duty Free Group has been very focused on over the years.

The ability to work, think and act globally is a very specific skill that is required to ensure that the same best practices are experienced across all operating continents, where, theoretically, a local supply chain manager could be moved from Helsinki to Vancouver and implement the same strategy and model from the outset.

In turn, this core consistency and high standard of expertise will make the inevitable future expansion all the more viable and successful.

REVENUE

â‚Ź2.078 million PRODUCTS/ SERVICES

Not disclosed

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Danya Foods

driving growth through supply chain professionalisation The Middle Eastern subsidiary of dairy co-operative Arla Foods is committed to total supply chain efficiency, and in turn providing increased value for money Written by: Sam Jermy Produced by: Craig Daniels

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D

Surveying the new site ready for the new equipment facilities

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anya Foods Co. Ltd is enjoying considerable progress within the Middle East and North Africa regions, and is planning substantial investment to enhance its success in the dairy products industry.

Based in Northern Europe, the global dairy giant Arla Foods, producer of the recognizable Lurpak butter, is the parent company of Danya Foods. There is DKK 35 Million worth of investment earmarked for more automation in the production processes, as well as warehouse capacity expansions and automation.

Further investments were approved last year to specifically invest in training, systems, process optimisation and production capacity, and the company envisages investments to at least remain the same going forward.

Thomas Nordholt, Regional Supply Chain Director at Danya Foods, explained how the company has adopted new technology to help the firm become more efficient. He said: “In the last 12 months Danya has gone from manually operated to almost fully automated production.

Part of our main investment is purely being able to produce more processed cheese.

“Another part of it is to automate existing production facilities to reduce conversion costs. For instance, where the company had manual labourers empty pallets, wash glasses before the filling lines, fill boxes and cartons, then pack them onto pallets it now has robotic machinery for all of this.”

MIDDLE EAST

A conveyor belt now brings finished items from production to the distribution part of the site, and there are robots which not only bring pallets into the warehouse but even shrink-wraps the finished products being loaded for distribution.

“It has been a fantastic journey. In this coming year our focus will be to increase capacity even more while reducing time and cost to market.” added Nordholt.

“What sets us apart here is we have this team spirit; it encompasses the entire organisation” – Thomas Nordholt, Regional Supply Chain Director at Danya Foods

Progressiveness Danya prides itself on having achieved a doubling in production volume at the same time as reducing costs. Apart from the worldwide Lurpak butter from Arla, one of the big brands in the Middle East is called Puck. This brand offers processed cheese, cheese triangles and slices, Construction of the new production building

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WE KNOW THE MARKET WANTS WHITE JAR AND TRIANGLE CHEESE Burt Lewis, with offices in Dubai, Denmark, Canada and the US, is a global supplier of US raw materials such as White Butter, White Cheddar, White Milk Powder, perfect for Jar and Triangle Cheese. doris@burtlewis.me www.burtlewisingredients.com www.mammencheese.dk +45 30 58 62 12 +971 56 741 2102

D A N YA F O O D S cheddar, processed cheddar, processed garlic cheese, cream cheese, thick cream, sterilised cream and condensed milk.

It also imports 20kg blocks of cheese from Europe, mainly Denmark. Then it is shredded and sold as shredded Mozzarella under the Three Cows and Puck brands. Saudi Arabia counts for about 50% of Danya business in the Middle East. There is also a vast market in Africa, but it is more skewed towards products such as the Dano milk powder brand. It is a widespread market too; in North, East and West Africa.

Operations were established in Saudi Arabia in 1977 and Danya now has 13 depots, 3 warehouses, and 420 vehicles which is a mix of sales vans, trailers and smaller vehicles.

The company head office is in Dubai, and

SUPPLIER PROFILE

MIDDLE EAST

Preparations to install the new equipment

BURT LEWIS

Burt Lewis Ingredients is a subsidiary of Burt Lewis International which was established in 1976 and has now gone on to become one of the leading ingredient suppliers to many large and well known multinationals around the world. At Burt Lewis Ingredients we pride ourselves on delivering the highest quality dairy ingredients at the most competitive cost utilizing the most efficient supply chain. Burt Lewis Ingredients provides a wide range of services to meet customer needs.

These services range from logistics and documentation services to price risk management.

Website: www.burtlewisingredients.com

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SPX - OVER 100 YEARS IN THE DAIRY INDUSTRY With a focus on innovation and process development, we continue to expand our product portfolio in order to provide our customers with more choices and more solutions. From engineered to customised systems and components, SPX helps you process dairy products your way. Contact us today to find out how our newly launched solutions and industry leading brands can help you meet your most critical processing challenges. www.spx.com ft.enquiries@spx.com ft.dubai.sales@spx.com EVAPORATORS • DRYERS • HOMOGENIZERS • HEAT EXCHANGERS MIXERS • SEPERATORS • VALVES • PROCESS SYSTEMS • PUMPS

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D A N YA F O O D S Riyadh is the location of the production site for both Danya and a selection of Arla items sold within the Middle East and Africa.

Rationalising of its local transportation to, from and between depots within Saudi Arabia and abroad and using third party logistics solutions are avenues the company are exploring.

Nordholt said: “Because of the sales growth of our main products there is a never ending demand especially for industrial size processed cheese, that’s why we are investing heavily to help reduce cost per kilo and increase capacity.”

The dairy producer knows there is a direct correlation between volume output to the costs of materials, man-power and the effort that goes into a finished product. Therefore everything is geared towards making the whole business process gain more fluidity.

MIDDLE EAST

Working late

FAT testing kit

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www.clearpack.com uaesales@clearpack.com

The Clear Choice for Packaging Primary Packaging Secondary Packaging Case Packing and Shrink Wrapping Palletizers Conveyors and Turnkey Packaging

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high quality glass packaging

for food products www.ardaghgroup.com

Palletizer

Singapore (HQ)

China | India | Indonesia | Malaysia | Philippines | Italy Saudi Arabia | Switzerland | Thailand | UAE | Vietnam

Quality closures for quality foods and beverages.

We produce the best quality closures by using the most advanced technology. www.capex.ae

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D A N YA F O O D S

MIDDLE EAST

Laying equipment’s foundation

The group supplies products to all Middle Eastern countries and as an importer of Arla Foods finished goods from manufacturing sites in Europe, Danya is also a distribution centre for its parent company in Saudi Arabia to the region. There are several distribution set ups in other Gulf countries but it has a presence in every country in the region.

Strategic Vision and Team Spirit Minimising disruption in the supply chain and maximising profitability, without compromising excellent value for money to the end customer has not been the sole focus for Danya.

A key feature is its multifunctional, multinational

“Simply by delivering results it immediately gets noticed at the top end of the organisation. It’s those people we are willing to invest in hard and fast.”

– Thomas Nordholt

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D A N YA F O O D S

Installation

YOUR FOOd & LIQUIdS SpecIaLISt INdUStRIaL aUtOMatION Operational improvement, increase in efficiency, process optimisation by functional industrial automation and IT, building related systems and service & maintenance. caLIBRatION More than controlling the measurement device.

Your calibration partner for pressure, temperature, (mass) flow , weight and conductivity but also for the validation of your processes and producing energy balances.

StORk techNIcaL SeRvIceS T +31 (0) 314 684 545(Industrial Automation) T +31 (0) 58 284 4600 (Calibration) www.storktechnicalservices.com

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FOOD

Equipment up and running

group of employees who are all working towards the company’s long-term strategy of increasing volume by at least 20% per year by 2020 while at the same time continuing to reduce the cost base. The growth will be a mixture of organic growth, adding new products to the line and may also include mergers and acquisitions if such opportunities surface.

Nordholt said: “Last month we again broke our volume and cost production record for the 12th consecutive month and immediately I took the team out to celebrate.

“There are always rewards and what is unique in my opinion is that we give high achievers an opportunity but also those hardworking people who may not come with a very

“There is a never ending demand especially for industrial size processed cheese, that’s why we are investing heavily to help reduce cost per kilo and increase capacity” – Thomas Nordholt

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D A N YA F O O D S

Staff outing: The Supply Chain SWAT team

“It has been a fantastic journey.

In this coming year our focus will be to increase capacity even more while reducing time and cost to market” – Thomas Nordholt

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high end education or a very fancy looking resume in terms of their work experience.”

This inclusiveness in encouraging the careers of all people no matter what background, education or background is a focal point of staff recruitment and retention. One prominent example includes one gentleman who started working at Danya as a receptionist one year ago; today he is in charge of all direct deliveries to all the main supermarkets in Saudi Arabia.

“Simply by delivering results it immediately gets noticed at the top end of the organisation.

It’s those people we are willing to invest in hard and fast. We give them opportunities

MIDDLE EAST

to succeed and we value their ideas and contributions.” commented Nordholt.

He explained: “What sets us apart here is we have this team spirit; it encompasses the entire organisation and that means if a labourer from the warehouse really believes he has a good idea or suggestion, he is not afraid to walk into the general manager’s office proposing his idea because he knows we will be very receptive.”

There is a government programme called Saudization to employ at least 20% local people in companies such as Danya, and Danya has been quick to support the government on this. Increasing automation created a need for more highly-skilled employees with Nordholt recognising many Saudi’s have a high skillset in robot technology and programming, therefore naturally increasing demand for those people.

Asked what sets Danya aside from competitors, Nordholt said: “Our agility in the supply chain is incomparable. Objectively we are fairly small compared to some of our competitors here but they are very heavy organisations whereas we are extremely good at getting everyone to buy into a project instantly and delivering the results in a short time.”

A perfect illustration of this operational overhaul is the fact Danya now saves 97% of the total packaging material used for its industrial cheese whilst it can also fit 15% more volume on the reusable pallets; another pleasing milestone in the company’s long-term, progressive vision.

Company Information INDUSTRY

Dairy foods HEADQUARTERS

Dubai FOUNDED

1977 KEY PEOPLE

Thomas Staerk Nordholt, Regional Supply Chain Director EMPLOYEES

900 REVENUE

+800 mio SAR PRODUCTS/ SERVICES

Dairy foods, processed cheese, cheese blocks, triangles, cheddar, mozzarella, condensed milk

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Passenger Rail Agency of South Africa (PRASA) brings

South African rail services to the top with R51bn rolling stock investment Written by: Joel Levy Produced by: Dennis Morales

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PRASA

With 600 new feature-packed trains being supplied by Alstrom, the Passenger Rail Agency of South Africa is fulfilling its mandate to give the country quality public transport fit for the modern era

X’Trapolis Mega train

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S

outh Africa’s state-owned public transport entity PRASA is in the midst of one of the world’s largest rail transport projects, having last year signed a R51 billion contract with Gibela - a joint venture led by Alstom - to supply 600 commuter trains with a total 3,600 coaches for delivery between 2015 and 2025. The contract came into effect in April 2014.

Alstom is supplying PRASA with its new highend X’Trapolis Mega trains which will fit the 1.067-metre gauge in South Africa, replacing ageing suburban trains in Pretoria, Johannesburg, Cape Town and Durban with state-of-the-art examples.

“A long time ago South Africa was a welldeveloped railway country,” said Gibela CEO

AFRICA

Marc Granger. “This industry has not disappeared but has not benefitted from investment for a long time.�

Capable of speeds up to 120 km/h and with the potential to upgrade to 160 km/h, each new single-deck train can carry more than 1,300 passengers, and comes equipped with air conditioning, ergonomic seating, real-time onboard information, Wi-Fi internet access and a combination of direct and indirect lighting, all of which combine to deliver a spacious, comfortable and connected user experience.

They also set a high standard for sustainability, with a 95 percent recyclability rate, and a light stainless steel car body-shell which minimises weight, while the electrical braking system

1,300

Number of passengers a new single-deck train will carry

Carriages will be fully air conditioned

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Together we Shape the Future...

Siyangena Technologies specializes in electronic Security Systems with the provision of customer specific security and monitoring of alarm panels in a business environment.

Siyangena Technologies undertakes to use our extensive Electronic Integrated Security and Alarm Monitoring Centre experience to deliver tangible business results enabling our clients in the industry and government to profit from the advance use of unique technologies.

Products and Services

National Operations

Close Circuit Television Systems • Access Control Systems, Time and Attendance Systems • Building Automation Systems • Fire Detection services • Fibre Optic systems • Intrusion detection system • Perimeter detection systems • Public Address and Evacuation Systems

Offering integrated electronic security business solutions, Electronic monitoring and tracking Solutions, Monitoring of Alarm Panels in a business Environment and Green technology Solutions.

Pragason Subba Reddy, Managing Director Pretoria | Durban | Cape Town

www.siyangena.co.za | reddy@siyangena.co.za Tel: (012) 460 8216 | Fax: (012) 460 7465

SUPPLIER PROFILE

SIYANGENA

A certified Broad Base Black Economic empowered company, Siyangena Technologies, is committed in endorsing successful partnerships with its clients, Government, Parastatals and private companies. We at Siyangena support and live up to our responsibilities, to serve and enhance the communities in which we work and live and the society on which we depend.

The Company’s Social Skills Development Policy, encompasses projects that are external to the business or outward looking; projects undertaken for the purpose of uplifting communities in general and those which have strong development approach, with a focus on Social, Developmental or Community aspects. The company has an immense emphasis on job creation.

Offering integrated electronic security business solutions, Electronic monitoring and tracking Solutions, Monitoring of Alarm Panels in a business Environment and Green technology Solutions.

Siyangena Technologies operates within South Africa and with regional offices situated in Pretoria, Durban and Cape Town.

Management: Pragason Subba Reddy, Managing Director Website: www.siyangena.co.za

PRASA

AFRICA

Train manufacture

significantly reduces energy consumption.

Indeed sustainability is a core value of PRASA’s plans, with the enterprise stating its commitment not just to the financial ‘bottom line’, but to “environmental quality and social equity”.

Speaking at the new train design’s unveiling in July, PRASA Group CEO Tshepo Lucky Montana heralded the latest stage of the project.

He said: “It is running at full speed and we have successfully completed the first important milestone. We are very satisfied with the progress made and the results achieved, this train will become a national asset, which will satisfy the needs of our passengers and make them proud to use it.”

‘Gibela is to open a R1 billion factory in Dunnottar, Gauteng, to manufacture 580 of the trains domestically, which will create more than 33,000 direct and indirect jobs over 10 years’ – Tshepo Lucky Montana, PRASA Group CEO

Factory investment Early next year, Gibela is to open a R1 billion factory in Dunnottar, Gauteng, to manufacture 580 of the trains domestically, which will create more than 33,000 direct and indirect jobs over w w w. p r a s a . c o m

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PRASA

Artist’s impression of Kempton Park Station

‘The entire project is geared towards PRASA’s goal of revitalising South Africa’s rail industry to the high and efficient standard demanded’ 82

August 2014

10 years, with Gibela training 19,500 young South Africans to perform the role effectively.

Construction of the facility will start before the end of the year.

The entire project is geared towards PRASA’s goal of revitalising South Africa’s rail industry to the high and efficient standard demanded by a modern society, with safety and reliability high on the agenda, and responds with conviction to the country’s growing commuter figures and the strain they place on the existing system.

AFRICA

Key Personnel

Sfiso Buthelezi Chairman of the Board

However, though huge in scale, this project with Gibela represents just half of PRASA’s ambitious plans for South Africa. Its R123bn rolling stock programme is procuring some 7,224 new rolling stock over the next 20 years, with the second phase still to come as it promotes rail as the backbone of the public transport network.

New and ambitious It is the sort of vision that has characterised PRASA’s work since it was formally established

Tshepo Lucky Montana Group CEO

Dr Zanele B. Gasa FCIP Committee Chairperson

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PRASA

“It’s of vital importance to mobilise the energies of each employee in creating a railway service that forms an integral part of the renewal of the transport system and our society as a whole” – Prasa website 76 percent of PRASA’s 17,000 employees are still employed by Metrorail

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in December 2008 as an arm of the National Department of Transport.

This act consolidated various South African transport entities including the urban commuter rail operator, Metrorail, regional and inner-city rail operator, Shosholoza Meyl and coach operator, Autopax. Investment company Intersite has also been included into the new entity PRASA, taking responsibility for PRASA’s investment, while PRASA Corporate Real Estate Solutions (CRES) is responsible for its property portfolio. Finally,

AFRICA

its technical arm, PRASA Technical, manages its rolling stock depots and workshops.

The new establishment aimed to promote efficiency, innovation and accountability in South Africa’s faltering public transport system, fostering investment, addressing fragmentation issues and fulfilling the people’s desire for greater mobilisation at an affordable price.

The move was also influenced at the time by the country’s imminent hosting of the 2010 football World Cup, and the quality connectivity required by hosting a tournament on an international scale in various location across the country. Success in delivering this sporting event paved the way for the latest upgrades.

Today, 76 percent of PRASA’s 17,000 employees are still employed by Metrorail, and PRASA is aware that the dedication and expertise of its staff will be crucial in fulfilling its goal of providing South Africa with a world-class transport system that positively impacts on the entire country.

It states on its website: “It’s of vital importance to mobilise the energies of each employee in creating a railway service that forms an integral part of the renewal of the transport system and our society as a whole.”

With the huge investment plans underway and the clear set of values upheld on the course of the rolling stock project, PRASA seems set to fulfil its vision to be the South Africa’s Number One Public Transport Operator.

Company Information INDUSTRY

Transportation HEADQUARTERS

South Africa FOUNDED

2009 EMPLOYEES

17,000 REVENUE

Asset Value 38 billion PRODUCTS/ SERVICES

Transport Systems

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Transportation Associat Maryland, Inc. (TAM)

Contributions from: Christina I. Miller, MBA, CCTM, Executive Director Beth Hamby, Senior Transportation Planner, KFH Grou Christopher B. Costello, Public Sector Consulting Gro

tion of

up, Inc. oup 87

TA M

This bus fire demonstration was the final event of 1½ days of Emergency Response Training organized by TAM and Washington County Transit in coordination with the Maryland Transit Administration (MTA) Office of Local Transit Support, Washington County Emergency Services, Washington County Community Action Agency, Inc., and the City of Hagerstown.

“Burned Out Bus,” a photo taken during the TAM/Maryland RTAP sponsored Emergency Response Training received Honorable Mention in the 2013 National RTAP Photo Contest. The theme for the contest was “Putting Training to Work.”

Photo: Bittner Photography

WHO IS TAM? The Transportation Association of Maryland, Inc. (TAM) is a statewide professional association that is dedicated to improving mobility for all Maryland citizens. TAM is a viable and effective advocate for its members and provides professional development, training, and forums for the pursuit of excellence in public 88

August 2014

transportation by public, private, and specialized transportation providers.

The Association has come a long way since its beginnings in October 1985 when the first Board President, Jim Raszewski and seventeen founding members formed the Association. TAM incorporated in August 1991and for many years functioned with a volunteer Board

SECTOR

and part-time Executive Director who worked from home. At the May 2001 General Membership meeting, membership voted to expand TAM by recruiting to hire a full-time Executive Director and acquiring centrally located office space. In 2003, TAM hired its first full-time Executive Director and Administrative Assistant and opened

an office in Ellicott City. Today TAM represents every jurisdiction in the state of Maryland.

TAM’s goals are to be recognized as the leader in transit issues in the State, to be the organization of choice for transit systems, transit vendors, legislators and the public to discuss transportation issues in the State, to be financially w w w. t a m i n c . o r g

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TA M

independent and to have an active, well-informed membership who considers their membership fee a vital cost of doing business in the transportation industry.

WHY TRANSIT Public transit enhances mobility for all people. It increases the selfsufficiency and overall quality of life for elderly people and people with disabilities who may be unable to drive, provides alternatives for those who choose not to drive, and connects communities and individuals to jobs, educational, medical and other services.

Maryland is served by a network of transportation suppliers that provide public and specialized transportation throughout the state, from the Allegheny Mountains 90

August 2014

in the west, to the beaches and agricultural areas of the Eastern Shore. Ridership on TAM’s 85+ member organizations provided nearly 364 million passenger trips in FY13 and over 509 million passenger miles to connect Marylanders to jobs, medical services, nutrition programs, educational facilities, and other destinations essential to living well, independently and sustainably.

Transportation services throughout the state continue to grow in ridership and service quality.

Businesses in Maryland also continue to rely on public transit services. The availability of transit services enables businesses to recruit and retain employees from a larger pool, which is critical in a competitive and tight labor market. The diverse community

USA

transportation services provided by members of TAM link people to community resources and promote business, tourism and economic development throughout the State.

Community transportation services come in many forms: traditional city bus services, “demand-response” service arranged on a one-on-one basis, hybrid “flexible” route service, and organized volunteers using their personal vehicles are just a few of the more commonly found services in Maryland. These services are provided and managed through local governments, non-profit human service agencies, private companies, and transit authorities.

General Membership Meetings; Annual Conference & Tradeshow; Regional Training Initiatives for Members; and Access to Member Directories and Forums. In addition, via business partnerships, TAM is able to offer discounted products to its members. These partners include Atlas Insurance Agency/Erie; Achieve Links; AFLAC; Exxon Mobil; First Financial Group; Legal Shield; Midas; and Wells Fargo.

INNOVATIONS, OPPORTUNITIES AND ISSUES IN TODAY’S PUBLIC TRANSPORTATION INDUSTRY

Transit Technology MEMBERSHIP DEVELOPMENT Technology continues to drive AND BENEFITS the world we live in and the As a part of its membership transit industry is no exception. development program TAM Technological advances include has established a number of vehicles that operate on alternative collaborative partnerships fuels (electric buses, hybrids, allowing it to offer a select menu CNG, “clean diesel”), accessibility of value-added benefits to its equipment which must be installed membership. Member benefits on vehicles to provide access to currently include: Annual Legislative people with disabilities, security Reception & Transportation equipment, and a whole ecosystem Fair; Annual Statewide Roadeo; of digital communications, w w w. t a m i n c . o r g

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TA M automatic vehicle location made possible through global position systems, often referred to as Intelligent Transportation Systems or ITS. In communities where that ITS information is linked into realtime next-bus arrival information systems and web-based technology applications, customers will be able get ready access to updated transit schedule information on their smart phones.

identifying training needs, hosting, and promoting training events. In recent years MTA and TAM have partnered to raise the level of safety training and emergency preparedness among the LOTS through the TransitSCORE program, which MTA recently redeveloped into a web-based curriculum called MarylandTRAIN.

Meeting the Needs for Specialized Transportation The Importance of Partnerships Services Partnerships are essential to Public transportation providers innovations and developments struggle to meet the needs of in the community transportation specialized transportation for those industry in Maryland. The Maryland who are unable to ride traditional Transit Administration (MTA) of bus services due to disabilities, the Maryland Department of medical conditions, or the effects Transportation (MDOT), as the of aging. Meeting the individualized provider of federal and state funding needs of vulnerable passengers to the Locally Operated Transit requires significant resources. In Systems (LOTS), is a major partner, Maryland, as in many other states not only in terms of dollars, but across the nation, meeting the also in the provision of training demand for getting people to and and technical assistance. Training from specialized appointments is a for the LOTS, MTA grantees, and concern. Kidney dialysis treatments others is funded through Maryland’s are a prime example of this type of Rural Transit Assistance Program challenge. The number of dialysis (RTAP). RTAP training is offered in treatment facilities continues to collaboration with TAM, a partner in grow, offering opportunities for 92

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USA

people with kidney disease to live longer lives; however, resources for public transit services are waning.

Recognizing that specialized transportation services are a critical piece of the health care puzzle, the State of Maryland, in collaboration with TAM and other stakeholders, sponsored a study in 2013 to evaluate the growing need and diminishing funding for specialized transportation services.

The Ongoing Funding Challenge As a public service industry, community transportation relies on tax dollars and grant funding to keep its wheels in motion. While this has always meant resources are constrained, the economic downturn over the past five years has hit our industry hard, with many providers struggling to meet basic community needs for transportation access to jobs, job training, medical care, and other critical services. As the economy has dipped, so have tax revenues and consequently public funding sources.

The Challenges of Maintaining a Public Transportation Workforce

Driver hiring and retention is another ongoing trial for the industry. Driver positions can be difficult at times; drivers deal with traffic, time pressures, and violent and unpleasant passengers on a daily basis. These issues, coupled with funding challenges, lead to relatively low wages and benefits.

This makes it difficult to hire and retain skilled public transit drivers when competing with higher paying jobs in transportation. The lack of retention also impacts succession planning. As today’s leaders approach retirement age, preparing to hand over the reins to the next generation involves developing tomorrow’s leaders. To address this issue, TAM is looking at ways to connect younger professionals with veteran leaders.

LEGISLATIVE IMPACTS Dialysis Transportation Study In answer to the growing need for specialized transportation mentioned earlier, in 2013 TAM, working in conjunction with a major dialysis treatment provider, successfully initiated a study w w w. t a m i n c . o r g

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25th Annual Conference & Tradeshow. Photo: Bittner Photography

TA M produced by the MTA regarding the demand for Paratransit services provided by the LOTS for individuals receiving dialysis treatments. The impetus for requesting the study stemmed from recent increases in Paratransit trips provided by TAM members for dialysis patients. The report verified the observations of TAM members and will be used to support future legislation to justify additional funding for Paratransit services that has been flat for the past 10 years as costs and demands have increased.

The MTA contracted with the KFH Group for the completion of the study. KFH Group is a DBE certified woman-owned small business (and TAM member) that offers planning services, technical assistance and training to transit agencies.

Transportation Funding In 2012 TAM participated on a team of advocates that included the Chamber of Commerce, trade associations and nonprofit organizations that supported the passage of SB 719 & HB 1302, which today provides the Maryland

USA

transportation Trust Fund with as much as $664 Million more per year.

Without this additional revenue it was unlikely that Maryland would be able to adequately maintain the existing transportation infrastructure and public transportation services.

Public Service CommissionIn 2011 TAM was able to win passage of legislation that eliminated duplicate vehicle inspections by the Public Service Commission (PSC) and the Maryland Transit Administration (MTA). The inspections provided by MTA are required by the U.S. Department of Transportation and were more rigorous than those conducted by the PSC. Elimination of the inspections of LOTS vehicles enabled the PSC to reallocate their constrained resources in order to meet the increasing back log of private industry carriers in the State without any fiscal impact to the taxpayer.

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John Holland Rail

Building Infrastructure and C

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

Community

d Rail’s most recent and its communities thrive

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JOHN HOLLAND RAIL

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 98

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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

AUSTRALIA Richard Stewart

– there are 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 selfperform, 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 w w w. j o h n h o l l a n d . c o m . a u

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SUPPLIER PROFILE

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JOHN HOLLAND RAIL 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 River sections; and the recently completed Sydney Inner West Light Rail extension, which doubled the

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size of Sydney’s light rail system by extending it to Dulwich Hill, through the main shopping precinct and Sydney CBD, and eastward toward Moore Park, Sydney’s cricket grounds and football stadium, and the University of New South Wales.

“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 backto-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

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JOHN HOLLAND RAIL 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 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

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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 lost time incidence frequency rate of 0.08 per million man-hours.

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 project.

“We were duplicating a line from Sutherland to Cronulla, and we had a project office at Sutherland Building Communities and those project offices were But this focus on people does next to an aging care center,” not solely apply to its employees, says Stewart. “Our people on that either – John Holland Rail is also project dedicated their own time to committed to positively impacting do some landscaping of the aging and improving the communities care home grounds, updating the in which it builds. “Community kitchen and retiling, as a ‘thank relations are something we’re you’ for putting up with us being very strong on,” says Stewart. “All next door to them for an extended of our projects have community period of time.” initiatives embedded in their John Holland Rail workers have delivery – things like assisting skills achieved a number of successful within the local communities near community initiatives, from raising projects we’re working on, working $150,000 in donations for New with local community groups on South Wales-based children’s initiatives that they’re looking to hospice care facility Bear Cottage implement, and aiding healthcare to partnering with Camp Australia organizations and local care centers. for a two-day program over school We spend millions of dollars per holidays for children of workers on annum initiating these projects John Holland’s South Morang Rail and monitoring them as part of our Extension project. “It was a very 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.

JOHN HOLLAND RAIL 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

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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 with others when we move out of the area when our projects are complete.”

“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 – Richard Stewart, General Manager of Operations at John Holland Rail 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

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 served in the Special Forces during WWII, he 108

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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 I’m most proud of, that I get to be

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Company Information INDUSTRY

Supply Chain, Rail HEADQUARTERS

Melbourne, Victoria FOUNDED

1949 EMPLOYEES

1,600 REVENUE

$1.4 Billion PRODUCTS/ SERVICES

Rail Construction Projects / Infrastructure

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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National Confederation of Truck Owners of Chile (CNDC): Written by: Juan Araya Jofre, National President Produced by: Lucy Verde

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(CNDC) History The National Confederation of Truck Owners of Chile is the trade association that groups representing employers and land transport road freight. It is present throughout the country, in its 15 regions with more than one hundred organizations and regional federations.

Celebrating bus drivers

Founded in 1953, is the entity that bonded for land transport by road. In the late 60s and early 70s the dynamic leader Leon Marin Vilarin, who joined in October 1972 and led the first major national strike in the sector, which opposed the nationalization of road. Currently, the union representing 39,000 companies, whose leaders have been the leaders Adolfo Quinteros, Julio

Partners

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L AT I N A M E R I C A

Lagos, Maturana Valericio Hector Moya, Cordaro Mauricio Andrés Ovalle and today Juan Araya, who have demonstrated strong efforts and achievements for development road transport in Chile.

Today, the Confederation of Truck Owners of Chile is part of the main reference of the SME associations, the National Board for Micro, Small and Medium Enterprises, Conapyme sector.

The 110 members of local associations and seven Regional Federations.

Our Federation represents 39,000 Chilean transport companies operating cargo in and out of the country.

Its main objective is to seek the progress of their partners and land transport by truck in Chile, for which maintains an agenda of working with multiple public and private sectors.

“Internationally, CNDC participates in the Business Council Road Freight MERCOSUR Condesur” – Juan Araya Jofre, National President w w w. c n d c . c l

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Juan Araya Jofre, National President

(CNDC)

L AT I N A M E R I C A

The CNDC integrates and is founder of the National Council of Small and Medium Enterprises, Conapyme, takes an active role in promoting the smaller businesses, bringing together 600,000 -. Chile and SME businesses employing 82 percent of Working on the outside Chile.

Internationally, CNDC participates in the Business Council Road Freight MERCOSUR Condesur. Also regulated through the State of Chile, according to the rules of the American Transit Conosur ATIT. The CNDC is a member of the International Road Transport Union, IRU, and a body that brings together union bodies transport truck. At the regional level, participates in multilateral bodies existing in the bilateral coordination and Conosur.

CNDC site

OBJECTIVES • Quality for our trade organization as a principle that guarantees our competition, success and leadership in the field of freight . • A collaborative, responsible and reliable organization that provides value to Truck Owners of Chile .

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(CNDC)

Board of Directors

News Update

Transporting truck

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The Confederation of Truck Owners of Chile is currently involved in the process of discussion and dialogue on tax reform bill that drives the current government. Its leaders are devoted to this subject, involving various tax aspects of the transportation industry. Also recently the CNDC was an active part of the 9th Transport Fair Chile, FENATRAN 2014, held in Santiago de Chile in May, and is the largest event of its kind in the country and one of the most important Latin America.

L AT I N A M E R I C A

The Confederation of Truck Owners participating in the Roundtable on Comprehensive Transportation Security, in conjunction with the Ministry of Transport, the Federation of Professional Drivers, Chilean police and other public and private institutions, in order to reduce traffic accidents on the roads of the country and contribute to increased levels of comprehensive security in them.

Company Information TYPE OF A S S O C I AT I O N

Entidad gremial COUNTRY

Chile

Also, their managers are involved in various intersectional bodies whose purpose is to contribute to the progress of road transport.

FOUNDED

1953 EMPLOYEES

“...Its main objective is to seek the progress of their partners” – Juan Araya Jofre, National President

15,000 KEY PEOPLE

11 national directors, Juan Araya Jofré (National President), Juan Bassi Estay (National Vicepresident), Patricio Mercado (General Treasurer), Augusto Pendola (General Prosecretary) EMAIL

info@cndc.cl

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