December 2008 • SupplyChain Review 1I

The SCLAA extends their congratulations to all of the winners and high commendations for the 2008 Australian Supply Chain & Logistics Awards. Over 300 people were in attendance at the prestigious awards evening and to celebrate the longest standing awards program in the industry. To see all of the winners simply log on to www.sclaa.com.au

The SCLAA would like to take this opportunity to thank the following sponsors for 2008.

2 SupplyChain Review • December 2008

As part of our on-going commitment to servicing business across Australia, and to increase our recognition as an all round

delivery and Logistics provider, AirRoad are proud to join the SCLAA as a National Partner. “The SCLAA runs many events, award programs and conferences and this association was a way for AirRoad to play a more active role in the Supply Chain & Logistics industry and is also a great opportunity for our managers and sales team to network with other companies and individuals.” said Jan Bouhali, AirRoad Marketing Manager.

“The SCLAA are helpful and AirRoad has attended and sponsored some of their events and found it to be a perfect way to get known in the industry.”

“As a national company with a country wide network it is only logical that we should partner with an organisation with a national scope such as the SCLAA.”WHO ARE AIRROAD? Founded in 1989, AirRoad is a proudly independent and Australian owned company built on solid foundations of providing premium, leading edge Australia wide express transport and Supply Chain services to blue chip companies. Since our beginnings we have serviced many of Australia’s leading ICT, imaging, pharmaceutical, electronics, automotive, engineering and medical companies. Since the company’s inception all our line haul vehicles have been fitted with ‘air-ride’ suspension. This award winning innovation provides a very smooth ride, virtually eliminating carton chafe usually encountered on long hauls.

Our line haul vehicles have mezzanine floors which prevent compaction and protect your goods from being crushed – especially on long trips such as across the Nullarbor. Our depots have undercover loading facilities providing full protection from the elements, so your goods don’t get wet even on the rainiest days. With an extensive network across Australia you can be sure your goods will be delivered overnight to adjacent capital cities on the eastern seaboard or second day to most country towns. We know how important your goods are and that’s why we have a meticulous attention to detail across the transportation process. Our 98.9%+ audited DIFOT for delivering on-time and in-full reflects this. At AirRoad we deliver certainty and that’s why we are at the forefront of track and trace technology being the first in Australia to do so. So no matter what stage your goods are at in the delivery process you always know where they are.

AirRoad welcomed as National Partner

THE SCLAA ACKNOWLEDGES THE FOLLOWING NATIONAL PARTNERS

Enquire about our National Partners Program.David Doherty National Chairman ceo@sclaa.com.au

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For more information on what AirRoad can do for your business go to our website www.airroad.com.au or call 1300 CERTAIN (237 824)

December 2008 • SupplyChain Review 3

The SCLAA is pleased to once again host the National Forklift Championships to recognise the importance of forklift operation in the Supply Chain & Logistics Industry. Last year’s winners will defend their title in Melbourne in April 2009.

THE COMPETITIONEach competitor will perform the following tasks:• Conduct forklift pre operational check.• Identify hazards in the area.• Drive the forklift safely as directed.• Lift and lower loads in pallet racking.• Shut down the forklift and do post operation check.• Remove key and hand to Assessor.THE SCORING PROCESSEvery competitor starts with a score of zero. For every mistake made during the test, one or more points are added. The forklift operator with the lowest numerical score will be the heat winner, male and female. This competition is based on knowledge and skills not speed. Safety is important in the Supply Chain.COMPETITION PRIZESThe champion female and male will each win $1500 and a Trophy. Finalists in April will be presented with a plaque and Certificate of Participation. Heat winners will participate in the final in Melbourne.

The SCLAA would like to congratulate the following winners of the first round of heats.

HEAT 1 RESULTSVictoria 1st Mr Craig Rickards: Woolworths2nd Mr Jack Epifaniou: CSL Bioplasma3rd Mr Shane Read: McCain Foods (Aust) P/LQueenslandMale Winner: Jason Fitzgerald of Sealy AustraliaFemale Winner: Katie Burrow of DHL

New South WalesMale Winner: Michael Eden, Toll RefrigeratedFemale Winner: Pamela Cifuentes, Simons Warehousing

HEAT 2 – COUNTERBALANCED FORKLIFTS

HEAT 3 – REACH TRUCK FORKLIFTS

National Forklift Competition

Proudly Sponsored by:

MELBOURNETuesday 20th of January

MELBOURNETuesday 24th of February

Ausfork Training Centre193 Maidstone StreetALTONA VICPh (03) 9731 0456

Ausfork Training Centre193 Maidstone StreetALTONA VICPh (03) 9731 0456

BRISBANEFriday 30th of January

BRISBANETuesday 3rd of March

AIMM Industrial TrainingUnit 26, 315 Archerfield Road RICHLANDS QLD Ph (07) 3375 6699

AIMM Industrial TrainingUnit 26, 315 Archerfield Road RICHLANDS QLD Ph (07) 3375 6699

SYDNEY Tuesday 27th of January

SYDNEY Tuesday 10th of March

Schaefer Storage Systems14 Church RoadMOOREBANK NSWPh (02) 9487 8794 (SCLAA)

Schaefer Storage Systems14 Church RoadMOOREBANK NSWPh (02) 9487 8794 (SCLAA)

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To register for the next round of heats please contact: SCLAA NSW C/- College of WarehousingEmail: nsw@sclaa.com.au Ph: 02 9487 8794

HAVE YOU REGISTERED FOR THE NEXT ROUND OF HEATS? DON’T DELAY!

4 SupplyChain Review • December 2008 IV

Skills Formation Strategy project now underway

Snapshots

The Department of Education, Training & the Arts (DETA), in collaboration with the SCLAA, is proud to announce the Skills Formation Strategy (SFS) project for the Transport & Logistics (T&L) industry in Queensland. SFS T&L will be run State-wide

over a two year period and will provide a framework for T&L industries and communities to work with each other, the Queensland Government and other relevant stakeholders to analyse and address the reasons for skills shortages. SFS T&L seeks to gain an understanding of skills and labour shortages holistically, recognising skills shortages as a workforce planning and development issue rather than entirely a skilling issue. SFS T&L also aims to build capacity of industries and regions to work together on common workforce planning issues as well as enhance the capacity of the education and training system to give greater support to the growth of industries and communities. Ultimately, SFS T&L aims is to facilitate the development of relationships and networks that together will identify causes of skill shortages and work to develop and action appropriate solutions. The T&L industry in QLD has recognised for several years that existing skills shortages are not necessarily due to insufficient training and the following sample workforce planning issues will need to be collectively and adequately planned for in the coming two years:• Poor image an industry holds within a community;• A lack of or perceived lack of career paths in an industry or

occupation;• Poor job design employment conditions and wages;• Poor utilisation of skills; and• Changing aspirations of the workforce and its incompatibility

with positions offered. The availability of skilled workers and sound workforce planning are vital to the long term success and development of our industry in QLD and it’s now widely appreciated that

skills shortages are significantly influenced by a complex set of strategic circumstances. The effects of these can be minimised if a strategic and collaborative approach is taken within an industry or community to the common issues. Gary Pearson is the Project Manager for the SFS T&L, based in our Brisbane CBD project office, and will be catching up with as many industry stakeholders and organisations as possible during 2009 to gain your valuable input into potential solutions to the skills shortage issues, such as:• Mapping and gaining industry agreement on career

pathways in sub-industries;• Exploring school/industry partnerships to provide work

experience;• Designating mentors for apprentices and trainees;• Developing combined recruitment policies;• Developing workforce planning strategies;• Introducing activities to change community perceptions of

industries and career possibilities; and• Exploring job redesign. This State government sponsored industry engagement initiative is a wonderful opportunity for the T&L industry within QLD over the coming two years to establish a more permanent network of strategic collaboration in order to effectively deal with those issues that are likely to have a significant impact on our sustainability. DETA and SCLAA welcome any initial interest there may be for getting involved in the SFS T&L project and will be engaging our industry in the coming months by multiple means to ensure that everybody has an opportunity to contribute to workforce planning issues.

Year 2008 will soon be consigned to history with a record of startling damage in global and domestic financial markets. The fallout will undoubtedly continue for some time and many people will be hurt.

The Supply Chain & Logistics fraternity will not be inured from the ensuing difficulties. I hope you will weather the storm with common sense, focus on the fundamentals and be alert to every opportunity. The SCLAA is an organisation that exists only for the benefit of its Members and partners. In these turbulent times the SCLAA is a resource and bastion for Supply Chain and Logistics people at every level to get support and assistance in addressing problems and advancing opportunities. I encourage you to fully utilise your membership and gain value through energetic participation. Together in our SCLAA community we can work collaboratively to endure difficulties and build a base for future success. If we can be of service to you please don’t hesitate to contact us.

Amid the gloom in 2008 we also experienced some terrific achievements. The SCLAA continued to evolve and exciting developments are already planned for 2009. Look for early announcements on up-coming innovative programs and services. I must also thank all the volunteers and service providers who have tirelessly contributed to the on-going development of The SCLAA. The commercialising of Christmas creates false expectations and financial problems for many in our communities. Disadvantaged and disaffected people in particular suffer in many ways at this time. If you can find it in your heart and capability I urge you to make an effort to make Christmas a happier time for others who are in need of help and nurturing. To all our valued Members and partners in SCLAA I wish you and your loved ones a happy and safe Christmas. For 2009 I hope that you will be peaceful, prosperous and healthy.

If your company is interested in being a part of the SFS project please contact: Gary Pearson, Project ManagerSkills Formation Strategy – Transport & Logisticsp 07 3218 2742 or email sfs@sclaa.com.au

by David Doherty OAM, National Chairman

December 2008 • SupplyChain Review 5V

EDUCATION – THE KEY TO SUCCESS 2009 proves to be an exciting time and one with opportunities for the astute. In 2009 the NSW division of the SCLAA will play host to an educational series,

helping to fill the gap between strong operational understanding and the business needs. Tom Raferty (of Raferty’s Rules) will facilitate a half day education session early in the New Year that will further develop the knowledge of those who attend. The only true defense against ‘economic uncertainty’ is through knowledge and education.

A SITE TO REMEMBERNSW would like to thank the Fosters Group for hosting our recent site

visit. The event was held in the newly completed facility at Rosehill. Special thanks are extended to Andrew Barker and his team at the Rose Hill facility. Andrew shared a brief summary of the work conducted to date in streamlining the Logistics and operations, a truly amazing transformation to business model and one which provides a strategic platform for the future of the organisation. Thanks are also extended to the operations team, as our tour through the facility facilitated a better understanding of the operations and inspired many questions.

OPTIMISE YOUR TRANSPORT SOLUTION This was the message from Manhattan Associate’s Director of Services, Russ McGregor, at the final NSW breakfast club for the year. The message was clear whether the flag is oil price, carbon footprint or just the need to further reduce Supply Chain costs, transport optimisation is an avenue worth exploring. Issues explored included optimisations

impact not only in the area of cost reduction and carbon footprint but also include, receiving and dispatch planning, Execution of receiving operations, transport lead time and fatigue management to name a few.

2009 EVENTS In NSW, 2009 is gearing up will be a year to remember. The committee has established a new format for the course of the year with numerous activities that should suit all tastes. To start the year entrants in the Forklift competitions will complete their heats and move into the finals. If you haven’t already registered there is still time before the second heats. 2008 saw the launch of the breakfast club with several engaging speakers sharing from their wealth of knowledge. And so, while our venue

is planned to change, breakfast will continue to be served. Site visits have proven to be engaging and will become an integral part of our education and development plan, along with tailored education days, such as the one scheduled for March. June sees us coming into a showcase of technology with the Smart conference. As always this event will provide an opportunity to see what adaptations can be made to our existing Supply Chains. In the ramp up to the close of the year, September will play host to our Golf day. And while the day is intended to be an opportunity to network and have some fun we will still allow those with a handicap of less than 15 to attend. To be sure that you stay abreast of all the 2009 activities register your details nsw@sclaa.com.au

PRESIDENTS’ PEN As I sit here to write this, plans and preparation for Christmas are being finalised, as you spend time reading this message you will most likely be in the midst of your Christmas (or you left the magazine till after Christmas because of the rush). In our selected industry this period of the year is one that presents many challenges, many opportunities and plenty to do. Our actions will either make or break the results which we strive to achieve. It is because of this that I encourage you to take time to stop and think. The power of taking time to reflect, or project, is our opportunity to prepare for future success. In the midst of the busy period, take time to set yourself up for success. Wishing you and your family a safe and happy festive season.

Jonathon GriggPresident electNSW Divisione nsw@sclaa.com.au

Tom Raferty

New South Wales

6 SupplyChain Review • December 2008

COSTA LOGISTICS IN DERRIMUT

25 of our Members recently visited the Costa Logistics Fresh

Produce Distribution operations in Derrimut Victoria. Our host for the morning was Mark Stevens. Costa Logistics distribution network supplies over 460 supermarkets with their daily requirement of temperature controlled products. Together the national distribution centres process in excess of 80 million units per annum utilising tier one IT systems and staffed by highly valued and committed personnel driven by challenging performance measures. Costa has also put in place what they say was the largest deployment of wearable RF scanning devices in Australia at the time of implementing the WMS. The additional reason for the visit was to find out how Costa Logistics is achieving its high customer service levels and managing its people. Mark explained that the Costa Logistics ‘Character First!’ program recognises the importance they place in the character of their people, acknowledging that professional skills and personal character need to be equally developed in the workplace. The focus is on the development and recognition of good character in all whose lives touch our business. From recruitment to management development, Character First! is the keystone to their success. They understand that it is the exercise of good character which determines success. Costa Logistics will hire for character and train for skill, recognising the importance of having people of good character representing them at all levels. Mark regularly speaks to his operations team to praise and encourage them for the practice of good character, which is expected within Costa Logistics. Costa Logistics strong focus on people and culture has significantly contributed to never having a single hour of industrial dispute in any of Costa operations in over 40 years. They have managed to bring down staff turnover to less than 1% out of its total of over 1,400 employees, with absenteeism also running at less than 1%. To this end, the whole of the company stops for an hour or so each month to discuss one of 49 character traits and develop ways to help the individual, and the company, achieve goals and success. The results indicate that the commitment is worthwhile. During the site visit, Mark Stevens showed his passion for the business where he is an integral part. It is this passion that unites the individuals within Costa Logistics. At the end of the tour, coffee was served in the boardroom and many of us used this time to ask questions to Mark and his team and find out more about the Character First program. The SCLAA would like to thank Tavita Sao, Mark Stevens and the team at Derrimut for this great opportunity to look inside the walls of Costa Logistics fresh produce Distribution Centre.

THE ‘G’

Our last Logistics Lounge, which included our AGM, was a fantastic networking breakfast for our Members, with in excess of one hundred Members representing a cross section of industry segments. Attendees had the opportunity to

review our many 2008 activities (over 22!) and gain an insight into our plans for 2009, all over a seasonal breakfast.

RMIT UNIVERSITY We welcome RMIT as one of our newest National Partners. Together with Link Recruitment we will create an effective Mentoring program for our Members and Logistic graduates. It is important that we, as experienced professionals, guide new graduates to a successful and fulfilling career in our industry. If you would like to become a mentor please send an email to mentor@sclaa.com.au

2009 EVENTS Next year our division will continue with a wide range of events, including Site tours and Logistics Lounges (all free to SCLAA Members!). In addition we have already begun to plan for two special events to be held at the AEC Material Handling Show – the National Forklift Competition and a 2-day Yum Cha Seminar Series (yes – a new and exciting way to hear from professionals on a range of subjects).

CHRISTMAS MESSAGE Thank you to all our Members, companies and committee who have assisted the association in 2008 and I wish you all a safe and restful festive season! (I’ll be relaxing on the beach at Wilson’s Prom).

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Nigel EdwardsPresident VIC Divisione vic@sclaa.com.au

For our final Logistics Lounge we were fortunate to have Pr iceWaterhouseCoopers’ , Stuart Harker (Retail and Consumer Goods Leader) provide an insightful review of their ‘Retail & Consumer Outlook – Australia 2008 – New Choices’ publication.

December 2008 • SupplyChain Review 7

MESSAGE FROM THE WA PRESIDENT

This year has seen some great highs, and some goals missed, but as always there have been a great many lessons learned. Firstly, my heartfelt thanks to everyone who has contributed to the sustainment of a unique institution. In WA

we have lived up to that creed ‘Run by Members, For Members’. I am most confident and grateful that we have a strong and strengthening alignment between the objectives of the association in regard to providing quality networking and educational opportunities for Members and the value proposition for companies wishing to associate their brand with the SCLAA. The increasing take-up of corporate membership packages in WA indicates that many managers are seeing the benefits that involvement in the SCLAA bring to staff development, customer facing service awareness and being seen to be part of the industry that is giving so much to their company. We have seen the usual strong events this year in the form of the Ascot Awards, the Golf Day, Site Visits and Breakfast Meetings. It is fair to say that despite the best intentions of the Committee, sponsors and Members some experiments did not work as well as hoped. We ran some high quality half day speaker forums that did not receive the response we would have liked. We introduced a customer relations manager, but through no fault of anyone, this initiative did not deliver objective outcomes in a financially sustainable manner. We have much to thank Andrew Gadd for in his undoubted energy, zeal and dedication and wish him well in his current activities.

“One of our longest serving, loyal members received due recognition this year. Mike McGowan has served the SCLAA in WA for over ten years. In November this year you all voted that he be elevated to venerable status as a life member of the Association. It is fair and reasonable that a body that is so young not have many life members. Mike joins John Holmes as a life member in WA.”

In 2009 we will once again put the old lessons renewed and the new ones learned into effect. Our focus will continue to be on regular quality events that enable Members to develop their professional knowledge and networks in a socially relaxed atmosphere. Our first site visit for the year will be to the new Coles Distribution Centre in Kewdale in early February. This will be followed by frequent breakfast meetings, site visits and the occasional sundowner along with our very successful golf day and Awards program.

In 2008 we started to see the benefits of all the hard work that has gone into creating the national SCLAA structure. The range of quality, but free magazines sent to Members on a regular basis, is an example of the benefits that you can receive if we talk with one voice, representing Members nationwide through a genuinely representative structure. The standing of the SCLAA in national forums is growing because of our national vision, but local delivery. Members will see more in the future by way of the benefits you will receive, in return for the much appreciated faith you have put into the Constitution that enshrines the values of a truly representative Association. There is a famous quote that says that Democracy is the worst form of Government, except for everything else. The SCLAA has many loyal long serving Members who are passionate about their Association. Their views are to be valued and respected within an on-going commitment to the notion that our structure has its challenges but it is indeed ‘better than anything else’. Merry Xmas to you all and your families and let us together make 2009 another year in which all stakeholders achieve real value from their involvement in meeting the education and networking needs of our Members.

AWH SITE VISIT

Here are a couple of images from SCLAA (WA)’s recent visit to AWH, which also included features on Logistics and the Environment, courtesy of Carboncredex and Gecko Lighting, and the SCLAA (WA)’s AGM. Many thanks are due to AWH and John Ward for their hospitality. The SCLAA (WA)’s webpage features a comprehensive report on the event. At the AGM, Steve MacPherson was unanimously re-elected as State President.

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Western Australia

STEVE MacPhersonPresident WA Divisione wa@sclaa.com.au

8 SupplyChain Review • December 2008 VIII

The Queensland Branches of the SCLAA and the Australian Institute of Packaging (AIP) once again ran their annual charity golf day recently at Northlakes Golf Course raising $4,500 for charity. The two charities chosen for 2008 were Mercy Ships and Spectrum Employment. The two associations would like to once again thank all of the companies

who generously sponsored the day including AirRoad, APICS, Crest, Fibre King, Chep, Australian Container Unloading Group, Amcor, Brendale, Loscam, Golf World, Dematic, Hally Labels and for all of the 100 odd budding golfers who came out to support this annual event.

$4,500 raised at QLD Annual Charity golf day

Winner (including 19th and Handicap)

Runners Up

Lowest Actual Score

Bradman Award

Nearest to the Pin : 5th hole

Nearest to the Pin : 12th hole

Nearest to the Pin : 16th hole

Longest Drive : 18th hole

Straightest Drive : 7th hole

Spectrum Employment (Team 1)

Visy Board

Majans

APICS Team

Peter McGrogan, Big Gee (Spectrum Employment Team)

Stephen Humpage, One Harvest (Visy Board Team)

Greg Smith, Visy Board

Terry Sharp, Inpack

Michael Hood, BOC Ltd

THE 2008 ANNUAL CHARITY GOLF DAY WINNERS ARE AS FOLLOWS: