2 SupplyChain Review • June 2008 II

Introduction to Insight Group and its Volumetric Warehouse

Insight Group is a privately owned Brisbane-based property development company formed in 2001. Insight operates nationally

and its projects include a mix of Retail, Commercial, and Logistics Warehousing developments in a wide range of locations including Townsville, Bundaberg, Airlie Beach, Brisbane, Yatala and Eastern Creek NSW. With the Australian Logistics industry poised for exponential growth, Insight is establishing itself as a national Logistics and Intermodal facilities developer. Insight’s first ‘Insight Logistics Park’ (ILP) is located at Yatala midway between Brisbane and the Gold Coast.

In support of the growing challenges facing T & L Operators, Insight Group, have developed the breakthrough ‘Volumetric’ warehouse technology – the first of its type in Australia. Each of Insight’s two new era warehouses provides 20,391m2 of interior, column free space. The resulting increase in lettable area, greater efficiencies and operational flexibility are achieved through two design innovations;

The entire 68 m internal clear span is 1. column free, with supporting columns located outside the exterior walls. This creates an additional 14% clear usable floor space and improved operational efficiencies.With internal roof clearance at a 2. minimum of 10 metres across the

entire 68 metre span, net usable storage capacity increases by 20% when compared to the standard 8 metres clearance.

The operational benefits gained through ‘Volumetric’ technology can significantly reduce storage and distribution costs. The facility also provides an additional 8,400 m2 of awnings, representing 21% of the total usable warehouse space. The 7 metre wide all-weather awnings along the entire 300 metre length of all receiving and despatch bays are floodlit to enable 24/7 handling in all weather conditions, maximising operational efficiencies and time savings. The development incorporates environmental initiatives including water collection and storage from the 56,000m2 of roof area being used for fire fighting reserves, irrigation of the site’s extensive landscaping and for use in amenities. Electricity consumption is minimised by optimal use of translucent sky lighting, complemented by see-through perforated steel roller doors. Insight are also assessing the feasibility of solar harvesting. The industry’s response to Insight’s ‘Volumetric’ technology supports Insight’s future direction to play an increasing role in the development of Australia’s Logistics network. Future developments are planned at various locations along the Eastern sea board and in strategic rural growth centres. For further information please contact Rod Brooks on rod.brooks@insightasset.com

THE SCLAA WELCOMES THE FOLLOWING NATIONAL PARTNERS

June 2008 • SupplyChain Review 3III

The SCLAA Great ‘Fork-Off ’ competition proved to be very popular with the competitors, their employers, the SCLAA

membership and the sponsors for the competition. Eight finalists competed on the day and all demonstrated good knowledge and co-ordination skills in forklift operation. The pressure of having to perform in front of visitors only added to the difficulty for the contestants.

The champion male driver was Trevor Webb from the Sydney Markets - who did not lose his nerve on the day and completed the complex course in a record time of 8 minutes with the lowest score of 52 points. Trevor had already done a full days work at the Sydney Markets previously, before competing in the final. The champion female driver was Angela Mulloy who flew in from Brisbane that morning to complete the course in 12 minutes with the best female score of 116 points. Angela works with Pacific Brands in Brisbane and is considered to be one of their top operators.

The other finalists in the competition were:-

Gordon McIlwain, Kennards Lift & • ShiftAnthony West, K-Mart• Karley Townsend, Display & Storage• William Fall, Linfox• Darren Hoggard, Coles DC NSW• Leiane Campbell, K-Mart•

A perfect score for the competition was zero points. Every time a finalist made an error points were added to the score. Although time was considered a factor in the competition, the focus was on knowledge and safe operation to the national loadshifting standards. This is the first time a national forklift competition has been held by the Supply Chain & Logistics Association of Australia (SCLAA). The last one was held by the SCLAA’s predecessor, LMA approximately 8 years ago. In the past the Australian champions first competed in the Asia Pacific championships and then the European championships. The SCLAA will host the next championship in Melbourne in 2009. Mr Bill Pflegger, Managing Director for Hyster Equipment, said that they

were proud to support the event as they had supported similar competitions in Europe in the past. Hyster provided the battery powered counterbalance forklifts for the competition and Bill presented the trophies to the winners and finalists. The SCLAA would also like to thank Century Yuasa Batteries, Warehouse Safety Solutions, Schaefer Sydney, Metalsistem Australia and Display & Storage Group for their support and contribution to the competition. The SCLAA and the Assessors for the competition, Steve Hughes, Peter Blaney, Darryl Lord and Michael Starkey will consider all options to make the Great ‘Fork-Off ’ 2009 a bigger and better event. If you would like to be a part of the 2009 event email nsw@sclaa.com.au.

EMPLOYMENTMARKET REPORT 2008 NOWAVAILABLE

The SCLAA are proud to have supported the development of the 2008 Supply Chain Employment Market Survey report which has recently been released by their National Partner, Logistics Recruitment. This publication is the second annual survey report dedicated to the Supply Chain and Logistics industry.

To order your copy of the 2008 Employment Market Report log on to www.logisticsrecruitment.com.au and request a copy.

Champion male driver - Trevor Webb, Sydney Markets

Champion female driver - Angela Mulloy, Pacific Brands

4 SupplyChain Review • June 2008 IV

The Certified Professional Logistician (CPL) is a professional qualification that aims to provide the definitive standard for measuring capability and professionalism within the Supply Chain and Logistics profession worldwide.

CPL status enhances your professional credibility within the industry and also enhances the profile of the Supply Chain and Logistics Profession. The CPL Program is your career partner for life. With an extensive range of Continuing Professional Development (CPD) activities to enhance your capability, you will be at the leading edge of the profession.

China’s Supply Chain and Logistics Sector

Can there be a more intriguing, exciting and potentially rewarding opportunity in the world today than the one that

currently exists in China’s Supply Chain and Logistics sector? Australia is best placed in the world today to make a significant contribution to the development of China’s Logistics and infrastructure in the coming years. The SCLAA and ALC delegation to China will actively provide opportunities to establish relationships with major companies in the region. China is a sprawling nation covering 9.5 million sq km. Its spectacular double-digit economic growth, rapid urbanisation and changing consumption patterns are well documented. If China hasn’t already got there already, there are few who doubt that China will eventually become the world’s industrial powerhouse. Moving resources across this vast country to reach 1.3 billion people is no easy task. For that reason, China’s under-developed Logistics industry is one of the most vibrant and potentially rewarding industries in the country. However, this rosy picture ignores some of the major structural challenges which need to be addressed for growth to continue in the medium term. These include weak transport, poor information and communications infrastructure, a culture of regulation and bureaucracy, fundamental problems of energy supply, high Transport and Logistics costs, a poorly

educated and badly trained workforce and regional trade imbalances. The fragmented, low value-added nature of the Chinese transport market provides huge opportunities for foreign players, and the more developed domestic players, to come in and attract market share. The Government is moving fast to improve the Logistics sector, spending over 20% of GDP on Logistics assets, infrastructure and transportation improvements, reflecting a recognition that, with new challenges being placed on the country’s infrastructure to meet the demands of a rapidly developing and consuming middle class outside the major centres, China’s capabilities will be stretched to the limit. As a result, the Supply Chain and Logistics sector will continue to expand at a rate of over 30% per annum, with the principal focus being on developing a world class rail and road system. So, can any company in the sector afford to ignore the China opportunity? A recent survey of local foreign and domestic Logistics companies in China conducted by eyefortransport concluded as follows: “It appears that the overall conclusion for Logistics companies operating in China could be that the potential is significant and the challenges are vast. However, there are many international companies with successful Chinese operations, so if the right decisions and the right knowledge is acquired, the future will be bright. The market is also expected to grow very fast and is anticipated to

be larger than the US Logistics market in the next couple of years. Supply Chain and Logistics companies who are serious about expanding in China can do so very successfully if they manage to explore a niche market segment and expand from there.”

EXPRESSION OF INTEREST Nigel Edwards, Victorian President of the Supply Chain and Logistics Association of Australian (SCLAA) and Ivan Backman, Chairman of the Australian Logistics Council (ALC) will lead a delegation to China in early October 2008, conducting a broad overview of the local Logistics industry and visiting some of China’s fastest growing cities.

Logistics leaders can find out more about the tour by calling the SCLAA Secretariat.

DO YOU HAVE WHAT IT TAKES TO BE A CERTIFIED PROFESSIONAL LOGISTICIAN?

FOR FURTHER INFORMATION CALL 1300 364 160 or email info@sclaa.com.au

Miss Candice ThompsonVictorian SecretariatP: 03 9895 4467 P: 1300 364 160 E: vic@sclaa.com.au

The SCLAA and the ALC are proud to be working with the following partners; all of whom have an international presence, to create and exciting tour itinerary.

June 2008 • SupplyChain Review 5V

Over 170 people recently attended the launch of the Queensland Industry Development Awards for the

Transport, Supply Chain & Logistics Industries at the Hilton Hotel, Brisbane. The next generation of the SCL industry came out to support the new award program with 52 under 30’s attending the event. During the event the Supply Chain & Logistics Association of Australia, in conjunction with the Australian Logistics Council, APICS, CIPSA and the Queensland Transport Industry Capability Unit launched the inaugural T&L Industry Development Awards.

T&L Industry Futures AwardSponsored by

The Queensland T&L Industry Futures Award, sponsored by EsSCO, will be awarded to the company, institution or organisation with the best proven record in providing people with an entry to, and pathway in, the Transport, Supply Chain & Logistics industries. The T&L Industry Futures Award includes, but is not limited to, education or training (formal or in-house), implementing flexible work practices, workforce development, and support in career progression. “In recognising the skills and labour shortage facing the Supply Chain and Logistics sector, EsSCO decided to provide support as talking about it is

not enough,” Mr Liam Stitt said. “By ident i fy ing leading organisations that are going above and beyond the norm to engage people in our industry is an ideal way to help others understand how to deal with this issue. The younger generation must be encouraged and supported as they take over for the future, and what better way to do this than by supporting such a wonderful initiative as the T&L Awards program,” he said.

“I would fully expect other organisations, both large and small, to make a similar contribution to the Queensland Future Leaders and Industry Futures Awards.” Mr Stitt said.

T&L Future Leaders AwardSponsored by

The T&L Future leaders Award, sponsored by Queensland Transport, will provide incentive and recognition for individuals working in Transport, Supply Chain & Logistics industries that are planning a career path within the Industry. According to Louise Perram-Fisk, Senior Project Manager, Industry Capability Unit Governance and Planning branch,

“Queensland Transport is pleased to be involved with the T&L awards as they recognise the outstanding achievements of the people and organisations in the Transport, Supply Chain and Logistics industry.”

David Doherty, Liam Stitt, Louise Perram-Fisk and Vince Aisthorpe

SUBMISSION DEADLINENominations for both Award categories must be received by Friday the 13th of June 2008. Email qld@sclaa.com.au for the submission form.

6 SupplyChain Review • June 2008 VI

Site Visit

The SCLAA’s recent site visit to IKEA’s new Perth superstore provided a fascinating and highly educational insight in to the

challenges and successes, involved in servicing the largest retail outlet in the Southern Hemisphere. An enthusiastic group of SCLAA members gathered as the day’s trading reached its conclusion. It was an interesting time to tour the store, as the evening replenishment team was commencing the task of refilling the gaps in the store resulting from another successful day’s trading. Our hosts for the visit were Jason Coughlan, Retail Logistics Manager and Peter Nance, Instore Logistics Manager. Jason and Peter outlined some of the key features of IKEA’s Supply Chain that differentiate it from its competitors - namely the control of Manufacturing costs through initiatives such as the collaboration in furniture design between IKEA itself and its manufacturers. The control of Distribution Costs through the high percentage of goods distributed in flat pack form. The minimising of the number of times each item is handled in the Supply Chain. Jason and Peter presented a wealth of statistics about IKEA’s global business,

and about the Perth location itself. One that indicated IKEA’s success was that on Easter Saturday 18,000 customers visited the store. The store has 1,000 parking spaces. Our hosts mentioned the Key Performance Indicators that IKEA uses to measure the efficiency of its operation. An interesting feature was that the ‘goods-in -stock’ measurement is based on an exit survey of customers, i.e. if an item is physically in the store but the customer cannot find it, it is recorded as ‘out-of-stock’. Following the store tour, the two groups rejoined in the staff restaurant and were treated to a taste of Scandinavia; a variety of fish and a helping of the famous meatballs, and the opportunity for networking. All who attended the visit found it extremely interesting and extremely professionally organised. Sincere thanks are due to Jason, Peter and IKEA.

Networking workshop

Ron Gibson recently hosted an afternoon Networking Workshop at Bentley Technology Park Function

Centre. The function was well attended, with participants from a cross section of WA businesses. Judging by the post-meeting feedback, most, if not all, appreciated Ron’s relaxed and positive style, and his emphasis on the participants practicing during the afternoon the principles that he preached. Ron opened the workshop by outlining the two key concepts that he wanted participants to remember; firstly

when engaging in any networking, to have the mindset of wanting to help the other person; and secondly to always bear in mind when networking that you are not selling. He described four types of people to get to know when networking; potential customers/clients; people who can introduce you to potential customers/clients; people who can help the people that you know and, if appropriate to your situation, potential partners. Ron spoke fluently, using examples and relating real-life incidents to illustrate his points. He neatly dovetailed his speaking with individual and group exercises for the participants. We rounded his lecture off with the recommendation of a simple but extremely effective way to start the networking bandwagon rolling. He advised everyone present to create a list of individuals with whom they felt it important to keep in contact, and then to subdivide the list into three sections, with, say, the top thirty to be contacted monthly, the next seventy once a year. The afternoon culminated in a final opportunity for all to more finely-tune the new skills that they had learned over drinks and a buffet. If the proof of an events success is ‘in the pudding’, the evidence of the networking workshop’s impact was in the fact that the finger food was largely ignored for the first half hour after the event, as all involved eagerly sought to exercise their newly found networking skills. Many thanks are due to Ron and indeed to all involved in the event for making it such a success. A selection of Ron’s articles will be posted shortly on the SCLAA’s West Australian webpage.

23rd to 27th JuneWA Logistics Week A program of the best site visits from 2007 and 2008

10th of July Human Resources and Staff Retention (Breakfast Meeting)

24th of July Business Sustainability and Your Carbon footprint (Speakers Forum)

STEVE MacPhersonPresident WA Divisione wa@sclaa.com.au

MARK THE FOLLOWING DATES IN YOUR DIARY

June 2008 • SupplyChain Review 7VII

Chinese delegation meets SCLAA NSW

We had the privilege of being asked to meet with a most senior trade delegation from the

Ministry of Commerce Beijing and other provinces. The delegation of 18 persons was most interested in comparing the operation and services provided by the SCLAA so that they can compare it with their emerging association. Communication was not a problem as they had a most proficient interpreter. They were very interested in learning more about Australian productivity levels in Logistics, the major players in third party Logistics and government support for Logistics industry in Australia. Supply Chain as a term is not as well regarded as Logistics in China. Discussions about technology confirmed that China is equal to Australia in the use of technology but Greenfield sites are easier to integrate technology than ‘bolt on’ solutions. They were puzzled that Australia did not have a strong coastal shipping system and national rail infrastructure to support the Logistics function. The meeting was planned to take one hour in total and ended up taking three hours, reflecting on the level of interest and exchange of information that was provided by both groups. At the conclusion of the meeting the

SCLAA was presented with a number of gifts and an invitation to visit the Chinese Logistics and Procurement Association in the near future. Jonathan Grigg, Secretary SCLAA NSW, was invited to visit one of the provinces by the Director General. In conclusion, Australia can learn from many of the decision making processes used in China, and China can benefit from forming a strong relationship with the SCLAA in Australia. A commitment was made to develop and grow the relationship.

Membership numbers on the rise The NSW Division of the SCLAA has been very active in growing its membership base during this year. From the official launch of the division on 28th September, 2007 we now have close to 130 Members. The NSW Committee will continue to focus on membership growth and the development of the profession this year.

First CPL in NSW

Bill Henman has now been awarded the Certified Practicing Logistician (CPL) credential at the last meeting of the Certification Council. This credential recognises formal academic achievement, industry experience in this industry sector, professional development and contribution to the profession. To retain membership as a CPL the recipient must continue to contribute to the industry sector and maintain currency of knowledge and trends. At the last Council meeting the Transport and Logistics Centre (TALC) became a full member. The Council plans to further market the benefits of the program to the wider community in the next year.

Supply Chain Conference Sydney The inaugural Supply Chain Conference hosted by SCLAA NSW attracted many high profile speakers and a good level of senior executives from industry. Day 1 of the Conference saw 92 delegates attend and hear quality presentations from high profile persons such as Zoe Wilson from Australian Logistics Council, Rob O’Byrne from Logistics Bureau, Peter Melville from Maersk Logistics, Andrew Meyers from Global Cold Chain Solutions, Greg West from Farthing West, Arshad Chowdhury from MetroNaps United States, John Hands from Collins Food Group, Darryl Judd from SupplyChainJobz, Geoff Broadhurst from Apprise Software China, Cinthia Del Grasso from TLI Skills Council and Frank Sweeney from StarTrack Express.

BILL HenmanPresident NSW Divisione nsw@sclaa.com.aup 02 9487 8794

NSW Secretary: Jonathan Grigg

8 SupplyChain Review • June 2008

While Mile gave us all a chemistry lesson on what Biodiesel (B100) is and is not, and how his company is aiming to assist the transport industry, by building a superior renewable energy business using quality people and processes.

Really Fast Moving Groceries Over 40 members were treated to a rare insight into the modern and very large facilities at the new Coles Group DC at Somerton. The tour ably demonstrated how a combination of Manhattan Associates, SSI Schaefer International and Dematic technologies have been integrated to create a world class facility to supply your local supermarket. Cole’s management also provided an overall view of how they have completely re-engineered their Supply Chain network over the last couple of years.

SCLAA on show Recently we supported the Material Handling and Safety Show in Melbourne. Thanks to all the committee, Logistics Recruitment and our members who took time out of their busy schedules to man the booth. Feedback from the show was exceptional as we have many new members as a result.

VIII

President Note

As a Logistics professional I viewed the response to the recent natural disasters in Burma and China with despair

and amazement respectively. The provision of humanitarian aid imposes massive stresses to any Supply Chain. The collective effort in China has shown to the world what can be achieved if everyone works together on a common goal. Your donation to your preferred aid agency for both of these disasters will make a difference.

DECA Report Attendee’s palms were clammy as they took hold of the B-Triple steering wheel ready to merge into the traffic. As trucks passed by either side of your cabin you could experience the realism of the simulator – engine revs and traffic noise. As car drivers we all gained a valuable insight into the complexities of driving such a large vehicle, especially when it came to turning corners. There was also opportunity to try reversing into a loading bay. Clearly our experiences with a trailer at the local tip were helpful, but no match when it came to the B-double prime mover – it proved significantly harder. In addition to the driving experience, Ian Bushby was able to present DECA’s views on the significant skill shortages in the Logistics industry. Overall the DECA Truck simulator is an amazing training facility and I

think everyone left with a new found appreciation of what is takes to be a truck-driver and how to be considerate of trucks when driving.

Introducing Candice Thompson Candice Thompson, has recently been appointed as SCLAA’s new Secretariat, and will now be supporting all of the operations of the

SCLAA VIC & WA divisions. Candice will also be assisting the SA & NSW division with event management & Membership enquiries. Candice has a Degree in psychology and was brought to the association under high recommendation. We believe her cheerful demeanour and fastidious approach to her work will make a positive contribution to the SCLAA. Please make yourself known to Candice, so that she can assist you with event registrations, membership renewals, or other requirements.

Sustainability Our first Logistics Lounge was a great success. Liz Boulton, Logistick and Mile Soda, Smorgan Fuels, both provided very thought provoking, interactive and informative views on their contribution to addressing carbon emissions. Liz passionately presented practical, tangible actions to address climate change and discussed ways the transport and Supply Chain sector could work toward a more sustainable structure.

NIGEL EDWARDSPresident VIC Divisione vic@sclaa.com.au

Upcoming EventsJune: Costa’s Site Tour• 18th of June: Logistics Bureau – • Industry Breakfast26th of June: Chopsticks Culture 1 • day workshop.22nd of August: Toyota Site Tour• Victorian Future Leaders Awards•