Lion’s Share

Asked the key element to the company’s success, Lion Nathan’s Logistics director George Bearzot is quick to point to the company’s focus on its people.

“A lot of companies say they’ve got good people but I believe our approach, from recruitment, to development and company culture surpasses anything I’ve seen before,” he tells Logistics Magazine.

“It’s our major point differentiation.”

“We identify and measure the level of engagement employees have with the company, with the intention of understanding what will make a person put in that little bit of extra effort rather than just coming to work,” Bearzot explains.

“If you have engaged, competent people you’re 90 per cent of the way there.”

In addition, Bearzot asserts that an organisation’s supply chain strategy must be exactly aligned with the business, or it will fail to deliver what’s required.

“We create what we call ‘the vision’, which keeps supply chain supportive of the business by enabling us to be very clear where the priorities are and where we should be focusing our energies,” he says.

“Everybody working in supply chain really knows where we want to take it.”

“While cost is an important objective, our primary focus at Lion Nathan is customer satisfaction and that’s a people issue as well,” Bearzot says.

“We measure ourselves and have external people survey our customers on a six monthly basis to determine how we’re performing.”

“We know from feedback that we’re performing well but that’s not to say we can’t improve.”

“We encourage our people to find opportunities to service to our customers better and add value to them,” Bearzot adds.

“Our supply chain team consistently measure our DIFOT and know how we’re tracking to date. Regardless of their role they’re expected to understand customer issues.”

George Bearzot sees Lion Nathan at the leading edge of strategic procurement strategy.

“We’ve had a very sophisticated supply model for a number of years now,” he says.

“All suppliers are important but we recognise some are more strategically important than others, by virtue of the very considerable spend we have with them, and their ability to enact innovation in the business.”

“We segment our suppliers accordingly and try to secure long term, close working relationships with key suppliers at multiple levels starting with their CEOs and working right through the organisaton.”

Bearzot says Lion Nathan’s ‘Best in Breed’ systems support demand planning but communication, coordination and a solid process are more important than fancy software.

“We work very hard to measure our inventory in days,” he explains.

“If you don’t get the forecasting right you can stock out very quickly. It’s about collecting sales information across the country, aggregating it and managing the various parts of your business accordingly.”

“Business intelligence must be fed into the demand plans in a timely way so that we have stock in our Dubbo DC in time for that local event, for example.”

Over his career, George Bearzot has witnessed many changes in the alcoholic beverage industry, particularly in advanced supply chain planning technology.

“In the last ten years, the ability to optimise decision making has improved a thousand times,” he enthuses. “People don’t appreciate that.”

“With a view across the entire supply chain, complex decisions can be made more easily and in some cases are doable where they weren’t before.”

“As the systems become more powerful, it’ll drive great benefit for the industry moving forward,” Bearzot says.

The ability to connect with consumers through technology is another big change.

“Consumers are more fragmented and diverse, and the internet offers an easier way to connect with them,” he says.

“On the other hand, consumers are far more aware and knowledgeable.”

“Discussion about how society should deal alcohol consumption has increased,” Bearzot says by way of example.

“While we’ve always had to respond to the issue, the availability of information and ease of communication on the internet has facilitated our ability to engage better with consumers on this subject.”

“We see it as good news and believe we’re adding value to society by promoting responsible drinking.”

“The way we connect with consumers can also be applied to suppliers,” Bearzot says.

“Integrating efficiently with suppliers, right down to advanced notification, transactions and sharing forecasts and inventory management is where our company is going next.”

Taking an innovative step in the marketplace, Lion Nathan last year formed an independent company, Bevchain, which is 50 per cent co-owned by Linfox.

Bevchain is contracted to provide all Lion Nathan’s deliveries and warehousing, but free to build synergies with the volumes of its competitors.

“What we wanted to do is change our 3PL model in a way that works better,” Bearzot says.

“We’ve got a large scale distribution network, servicing tens of thousands of customers across the country for next day delivery.”

“We see it as a huge opportunity for industry to recognise that we can compete on brand while sharing resources and integrating our volumes to reduce supply chain costs.”

Contactless IT Security Solution

ASSA ABLOY Identification Technologies (ITG), one of the leading providers of products and services in the RFID market, has announced a new partnership with Soliton Systems KK Japan, a leading IT security solutions provider.

The combined solution includes the OMNIKEY® 5321 contactless smart card reader and SmartOn™ for enterprise IT Security management.

With the OMNIKEY® 5321 reader and Soliton SmartOn™ software, end-users experience the convenience, speed and security of contactless technology for applications including log-on to Windows, networks, websites and applications or the secure storage of user names, passwords and personal information.

The OMNIKEY 5321 combines the advantages of contact and contactless smart card technology in a single USB desktop device.

The unit will read/write any 13.56MHz ISO14443 A/B, ISO 15693 and ISO 7816 compliant contact/contactless card, including mifare® and DESFire®, Infineon, ATMEL, SHARP, as well as HID iCLASS®.

This unique reader and software combination provides the ideal solution for end-users who are currently using a contactless smart card for building access, as corporate or student ID, or for transit or cashless vending applications and want to expand its use to IT network security.

“Soliton is pleased to work with a leading provider like ITG,” says Dr Nobuo Kamata, president of Soliton.

“The high performance and easy-to-integrate OMNIKEY reader allow us to offer our SmartOn solution to customers with a contactless card already deployed in the market for physical security and now extending it to IT access control.”

“In Japan, we have partnered with OMNIKEY since 2006, and now we would like to enlarge our regional

footprint over Asia Pacific to worldwide, ” he says.

“Volker Kunz, Director Sales and Business Segment IT & Corporate ID at ITG, says the company is delighted about developing its relationship with Soliton into an official partnership.

“Soliton is one of the leading suppliers in the Japanese market for contactless corporate ID log on solutions,” he says.

“The relationship going forward will be one of continuing mutual benefit.”

Scrooge headed down under

Rising rents and interest rates are conjuring the modern-day Scrooge this year, as people find themselves less able to splurge at Christmas, according to a survey by DHL, the world’s leading express and logistics company.

The poll of almost 600 DHL customers showed that spending on Christmas is well down on last year with just 44 per cent willing to splash out on an expensive gift for loved ones, compared to 56 per cent the previous year.

Many blamed high living costs for a miserly yuletide and it seems no one trusts their loved ones to buy them a present they like.

“As well as the Scrooge-effect hitting shoppers, there seems to be no trust in what people expect to receive from their nearest and dearest this year,” says DHL Express Australia’s Marketing Manager, Helen Price.

“Practical gift vouchers are what people want to receive most,” she says.

Also high on the wish list are gadgets. Fourteen per cent of respondents would like to receive ‘big people’ toys such as computers and electronic accessories.

Money is also a popular choice – another safe bet for everyone.

Unfortunately, charities also appear to be sorely impacted with just four per cent of respondents indicating they would like to receive a gift from Oxfam or a similar charity.

Instead, most opted for practical presents such as clothes and accessories, or household items to fill the stockings on Christmas morning.

But while spending is down, however, the traditional Christmas break is well and truly entrenched in the Australian psyche, with many Australians looking forward to a long break, as businesses shut down for as long as two weeks for an extended celebration.

The DHL survey showed that 65 per cent propose to close over Christmas, with 28 per cent planning two weeks off and 23 per cent one week.

“And for those last minute shoppers, DHL is open for business right through Christmas and New Year, making shipping gifts this holiday season a completely stress-free experience.

Just call 13 14 06 to schedule a pickup and we’ll come right to your door to collect all your holiday packages,” Price says.

DHL is gearing up its workforce across Australia and around the world as it busiest days of the year approaches.

In fact, in December last year, DHL Express shipped over 400,000 shipments in Australia, 12 per cent more than in January 2007 despite the fact that it was a short working month.

Finally, if you are sending a parcel this Christmas, below are DHL’s Top Tips for Packaging to ensure your package arrives safely.

The dos

Choose the size of the package according to its content. Under-filled boxes could collapse; overloaded ones may burst.

Always use high quality materials for your shipments.

Choose boxes made of corrugated cardboard, with good quality outer liners.

Use cushioning materials to stop your packaging contents from moving.

Repack your gifts properly. Many goods sold in attractive packaging may not be suitable for shipping.

Protect your data discs, audio and video-tapes with soft cushioning material.

Complete the address clearly, using uppercase letters.

The don’ts

Do not use bags made of fabric or cloth.

Do not over seal your package. Remember that all shipments can be opened by customs authorities for inspection.

Do not use cellophane tape or rope to seal your shipment.

Do not consider “Fragile” and “Handle with care” labels as a substitute for careful packaging. They are only appropriate for information purposes

$48k fine over railway death

A company that handles maintenance on the Port Augusta to Leigh Creek railway line, has been fined over a safety breach that led to the death of one of its employees in 2004.

As a result of the prosecution brought by SafeWork SA, Works Infrastructure Pty Ltd had pleaded guilty to breaching Section 19 of the Occupational Health Safety and Welfare Act 1986, in failing to ensure the safety of an employee whilst at work.

The SA Industrial Relations Court recorded a conviction and fined the company $48,000.

The incident occurred on 7 September 2004, on a section of track about 190 kilometres north of Port Augusta, when the hi-rail vehicle driven by Karl Petry left the track resulting in severe injuries to the man.

(A hi-rail vehicle is one modified to run on both road and rail, and is used for track inspection and maintenance.)

It derailed at about 11.30am, but Mr. Petry was not found for more than five hours.

He’d suffered serious leg injuries, and died in hospital two days later from complications arising from his injuries.

The phones Mr. Petry carried with him were rendered unusable by the crash, while the situation was further complicated with incorrect phone numbers for him being given to other crews.

Following its investigation, SafeWork SA told the court of several safety shortcomings:

• Failure to eliminate loading hazards.

• No system to prevent uneven or excessive loading of the vehicle.

• No system to adequately monitor the wellbeing and whereabouts of a worker in an isolated area.

• Inadequate information, instruction, training and supervision.

In handing down penalty Industrial Magistrate Richard Hardy says the company’s culpability over the incident must be treated as very high.

“The absence of an isolated worker protocol has in this case increased the risk to any injured worker, and I note that even if there was a system in place, there was no means by which the defendant was able to contact the worker in view of the incorrect telephone numbers,” he says.

The initial fine of $60,000 was reduced by 20% due to the defendant’s early guilty plea, contrition and appropriate remedial action to improve safety systems.

SafeWork SA Executive Director, Michele Patterson, says the case again highlights the dire consequences of a lethargic approach to workplace safety systems.

“It is well-known that particular attention must be given to protecting workers in isolated locations,” she says.

“This was an easily foreseeable hazard, and a tragedy that could have been prevented had the right systems been in place, and proper attention paid to critical details such as contact phone numbers.”

“While the company concerned has now set up those appropriate systems, it should never take a death or serious injury to provide the reason for such work to begin,” Patterson says.

For answers and advice on workplace health and safety and the relevant laws, SafeWork SA operates a telephone Help Centre on 1 300 365 255 or 8303 0400.

To report serious accidents or incidents, in the workplace call 1 800 777 209

Schenker facilitates Melbourne International Arts Festival

Schenker has been appointed as official logistics provider and customs broker of the Melbourne International Arts Festival.

It is one of Australia’s leading international arts events and has an exceptional reputation for presenting unique international and Australian performances in: dance, theatre, music, visual arts and multimedia.

Since 2001, Schenker has been appointed as official logistics provider and customs broker, ensuring that the Melbourne International Arts Festival has received a first class, consistent and reliable flow of customs clearance, transport and logistics services.

Maureen Gardner, Operations Manager of Melbourne International Arts Festival says Schenker’s support, efficiency and good humour throughout our lengthy planning process, plus the continuous management of numerous projects and last minute requests was outstanding.

“I will certainly have no hesitation in recommending Schenker to arts colleagues who are looking to move or tour artwork and equipment interstate or internationally,” she says.

Ron Koehler, CEO of Schenker AU/NZ says Schenker has always presented the Melbourne International Arts Festival with our best services in logistical capabilities and loyalty.

“After another year of our support, we once again received a large amount of positive feedback from companies involved and I am sure that we will continue with our good reputation for logistics expertise,” he says.

Schenker Australia was established in 1962 in Sydney.

Today, Schenker Australia provides a complete range of international air and ocean freight as well as land transportation, together with integrated logistics services and supply chain management.

Schenker comprises over 1,200 people in 36 locations in Australia, and seven in New Zealand. Schenker and BAX Global are in the process of integrating around the world.

The joint organisation has a team of about 55,000 experts at 1,500 locations in 150 countries.

Together Schenker and BAX are now the No. 1 source for European land transportation, No. 2 for global air freight, No. 3 for global ocean freight, No. 6 for global contract logistics and No. 3 for North American integrated heavy freight.

Schenker is a part of DB Logistics, the Transportation and Logistics Division of Deutsche Bahn AG.

Schaefer Sydney comes alive

Display and Storage Techniques (Aust) Pty Ltd have joined forces with the world’s largest supplier of Industrial Storage Equipment — SSI — Schaefer and at the same time secured two industry heavy weights.

Graham Eastick and Martin Bates have joined Display and Storage, to form Schaefer Sydney, SSI — Schaefer’s newest distributor.

Schaefer Sydney will operate in NSW and the ACT offering the world’s widest range of industrial storage equipment from one source.

According to Martin Bates taking on the Schaefer brand in a market like Sydney will be very exciting.

“Graham Eastick and I will continue the great work done by the Display and Storage team to date bringing significant presence and in turn market share to Schaefer,” he says.

“Our customers will enjoy the best value adding solutions from a team of industry professionals. As we build our team, customer outcomes will be the focus.”

Operating out of their Moorebank premises, Schaefer Sydney will have the widest range of stock on hand in NSW, covering industrial pallet racking, hand loaded shelving, small parts storage systems, multi tier mezzanine floors and a wide range of plastic storage containers. In fact, anything at all to do with storage.

Schaefer’s global experience combined with the Display and Storage team’s local experience provides customers with in depth knowledge of current Supply Chain trends and how they evolve into solutions for their business.

Steve Matthews, Managing Director says the company has not only secured the world’s best storage solutions brand but also quite possibly the two highest profile people in the industry here in Australia.

“Graham and Martin have a track record of growth and success, largely because of their ability to build great teams that focus on customer outcomes,” Matthews says.

“For 25 years our experienced team have provided solutions to business in NSW and that offering has just been strengthened greatly. With the addition of Schaefer there is a lot to look forward to.”

For more information on Schaefer Sydney or to discuss your Supply Chain requirements, call +61 2 9602 0022.

Voicetrader for transport and depot operators

Adtec Communications has released the VoiceTrader open line speaker system for operators in the transport industry and other industrial sectors.

Developed originally for the demanding domain of financial dealers, this technology is functional, versatile and easy to operate.

It enables operators to respond effectively to all incoming information clearly, but without excess volume.

The VoiceTrader monitors incoming telephone channels via high quality custom-built speakers.

By using stereo speakers, each channel can be adjusted to have an apparent position in front of the operator with individual volume control.

The VoiceTrader system is perfect for operating rooms and control room open voice systems; featuring individual channel controls, speakers and transmit buttons for each operator.

Its open line speaker system interfaces to all Control Room or Dealerboard Systems, PABX or Key-Systems, and connects via 2 wire, 4 wire and private leased lines, either with other telephone systems or stand-alone.

For more information please call 02-9281-0444 or email Jeremy Sharp, Director, Adtec Communications at

Written and prepared by Omentum Media Australia.

Val Pavlovic: 0413 869 589, mob: 0413 869 589. email:

CHEP urges sustainable food supply

CHEP Asia-Pacific has urged its food supply chain partners to think about sustainable distribution right across the supply chain to secure the future of an increasingly fragile food supply ecosystem.

Speaking at the Sustainable Supply Chain Forum in Sydney, the President of CHEP Asia-Pacific, Howard Wigham, said all parties would benefit if they minimised operational risks – both physical and environmental – while identifying new opportunities from the changing landscape.

“CHEP recognises that there is an opportunity to help food producers respond to climate change and increasing input costs,” Wigham says.

“While our expertise isn’t in food production, we can share our experience in food distribution.”

“In an environment of constrained supply, reducing waste, shrinkage and spoilage throughout the supply chain becomes critical,” he says.

Howard Wigham says CHEP’s expertise in managing reusable, returnable supply chain packaging solutions could play an important role in helping the food industry to respond to sustainability challenges.

Best Results Australia organised the forum. Participants, including some of Australia’s largest food retailers, processors, wholesalers, growers, seed companies, banks and financiers, were told the only way to achieve sustainable agricultural supply throughout Australia’s farming community was through industry collaboration and wide scale change to existing supply chain practice.

The Chairman of Best Results, Patrick Byrne, says CHEP could play an important role in reducing waste and input costs.

Wigham says CHEP was seeking opportunities to work more closely with the food industry to ensure knowledge is shared more effectively.

“CHEP is in a unique position to observe the movement of fresh and processed goods through the supply chain — and we operate in 44 countries around the world,” Wigham says.

“We want to build collaborative bridges with our supply chain partners, working with our customers and the industry to remove waste – compressing time, cost and space through lean thinking, reducing environmental footprints through green thinking and reducing physical harm by thinking safe.”

“We have listened to our customers and many feel they would benefit from advice on lean consulting. We’re developing a new service in this area and would like to hear from organisations who’d like to participate in a pilot program,” Mr Wigham says.

For more information: Cate Binet Manager, Brand and Communications CHEP Asia-Pacific T: + 61 2 9856 2450

CHEP offers managed returnable and reusable packaging solutions to companies across the globe. Since 1956, our technology and know-how has helped some of the world’s best known brands including Procter & Gamble, SYSCO, Kellogg’s, Kraft, Nestle, Ford and GM get to market.

Our supply chain solutions help customers store, protect and move goods from production to point of consumption in a safe, cost efficient and environmentally sound way.

Whether moving raw materials, meat, fresh food, bulk liquids, car parts, or consumer goods, we apply the technology and thinking to make goods movement leaner, greener and safer.

Our solutions lower customers’ supply chain and bottom line costs and reduce operational risks. Using CHEP, customers can better focus their valuable resources on their core business.

With a pool of over 280 million pallets and containers worldwide, CHEP has more than 7,700 employees and operates in 44 countries.

For more information about CHEP, please visit:

World first for GS1 Australia

Australian supply chain standards association GS1 Australia is the first in the world to introduce an online GS1netTM Validation Engine (VE) following the introduction of the new Global Data Synchronisation NetworkTM (GDSN) standards.

GS1 Australia released its GDSN compliant service, GS1net, earlier this year but it has just introduced the VE and is now working with its supply chain communities on transition to the new platform.

GS1 Australia believes that the validation process will help Australian industry meet the increasing requirements for data accuracy, which is an essential component for successful supply chains.

The GS1net platform will leapfrog global peers by incorporating data validation services as part of the GS1net platform.

The GS1net Validation Engine will provide complete validation of more than 300 retail and industry business rules required by the GS1net platform through a web based portal.

GDSN is an internet-based, interconnected network of data pools with a global registry that enables companies around the world to exchange standardised and synchronised supply chain data with their trading partners.

Leadtec, an Australia leader in b2b e-commerce and GS1 Alliance Partner, was selected by GS1 Australia to develop and host the new GS1net VE functionality.

GS1 Australia COO Mark Fuller says Leadtec was an obvious partner for the GS1net VE project with its data synchronisation and b2b e-commerce expertise.

“GS1 and Leadtec have partnered on projects like the GS1 Community Management Tool and the EANnet Validator past and the GS1net VE is an exciting extension to our partnership.”

Managing Director of Leadtec Scott Needham says Leadtec is excited to be involved in such a groundbreaking project with clear business benefits to Australian supply chain communities.

“The platform has been implemented using an On Demand model allowing for the delivery of powerful functionality while being highly cost effective,” he says.

GS1 Australia is already globally renowned for the widespread adoption of its EANnet® platform for data synchronisation in Australian supply chain communities.

General Manager at GS1 Australia Richard Jones says traditionally EANnet members went through an accreditation process including data validation prior to becoming EANnet ready.

“The new GS1net Validation Engine will ensure that member data is validated with every upload ensuring the highest level of data quality,” Richard said.

About Leadtec Systems Australia

Leadtec is a leading b2b e-commerce solutions provider and consulting company, offering services in the areas of data transformation, catalogue synchronisation ebusiness connectivity and content and business rule validation. Leadtec assists organisations to develop and deploy state of the art e-commerce programs across all industries.

The company employs more than 50 people in its Melbourne and Sydney offices. Leadtec provides services to more than 1000 companies throughout Australasia including Woolworths, the Coles Group, Retravision, Toyota, Ford, Healthscope and Johnson & Johnson, making it one of the largest trading communities in Australia and the Asia Pacific region.

About GS1 Australia

GS1 Australia is an industry supply chain organisation and the only organisation authorised by GS1 Global in this country. A not-for-profit with more than 16,000 businesses as members, GS1 Australia concentrates on helping businesses to work smarter and more efficiently using the GS1 System.

GS1 Australia is part of a worldwide network that support companies in areas such as supply chain efficiency, traceability, inventory management, point of sale, and collaborative planning. The GS1 System is used by retailers, brand owners, and their trading partners in more than 140 countries, it consists of global standards for numbering, bar codes, electronic messaging, data synchronisation, and radio frequency identification (RFID).

For further information or to arrange an interview with Scott Needham please contact Catherine Vallence at Mendleson Communication on (03) 9827 0422 or 0400 212 245 or at

Women InMotion

MANUFACTURING has long been considered a ‘man’s world’ with recent reports confirming employment of women in manufacturing has dropped by a third in the past 10 years to only 63,000, or 10 per cent of the overall manufacturing workforce .

While most manufacturers find it increasingly difficult to attract and retain female employees, Brisbane’s InMotion Engineering says its one of few manufacturing companies that has recruited women to fill key roles within the business.

“I’m proud our business is a forerunner for equal opportunity employment in the manufacturing sector. says InMotion Engineering’s Managing Director Neil O’Hare.

“At InMotion, we strive to have an inclusive workplace in which our female and male employees feel comfortable.”

“We provide flexible working arrangements and promote a rewards-based culture where employees are recognised individually for their hard work. We’ve found this is a great strategy for attracting and retaining our female employees.”

“They’re also encouraged to learn first hand from the men on the factory floor and, in turn, teach their male counterparts efficient and productive business practices making for satisfied and well-rounded employees that can handle almost any situation,” he says.

“We’re lucky enough to have women on our team who enjoy the challenges of the manufacturing industry and who aren’t afraid to get out there and get their hands dirty.”

One such woman is InMotion Engineering’s Business Services Officer Angela Manderson who says she

thoroughly enjoys working in the manufacturing industry.

“While manufacturing may not be the most glamorous career path, I can’t think of anywhere else I’d rather work,” she says.

“This is a hands-on, practical industry with some exciting career opportunities for women who, like me, revel in the opportunity to see the work they do make a real difference to business productivity.”

Neil O’Hare says Angela was indicative of the type of women working at InMotion.

“Angela’s switched on, hard-working, enthusiastic and reliable; all the traits required for success in the manufacturing industry,” he says.

In her three years at InMotion, Angela Manderson has been promoted from part-time receptionist to full-time Business Services Officer.

Her key responsibilities include payroll, assisting with accounts payable and receivable, HR support, IT, administration, purchasing and sales.

Manderson says the flexible working environment at InMotion had given her the opportunity to head back to university to further her career development.

“Working at InMotion has given me the motivation to finish my degree so I can take on a more challenging role in the manufacturing industry,” she says.

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