Lean and Agile

InteLog assists businesses to break down their silos providing a common view of customers’ perception of value which supports successful implementation of IT.

“Technology also plays its part in improving the performance and capability of the supply chain,” says InteLog managing director Andrew Stewart.

Stewart says the company’s approach to the development and implementation of supply chain solutions is to engage stakeholders in an open and frank workshop process, which allows them to understand the current state of their supply chain.

“This process enables the stakeholders to see the end-to-end issues and the reality of their performance through the eyes of the customer,” he says.

“Having gained this common view and understanding, stakeholders are able to visualise a future scenario that represents their ideal.”

“The next step is for cross-organisation teams to work on the vital few issues and opportunities identified in the workshop process and to develop solutions.”

“Regular review meetings continue the stakeholder engagement and involvement in what becomes a continuous improvement process not only for the supply chain but for individual members in the organisation,” he says.

According to Andrew Stewart, InteLog customers and consumers are seeking transparency and an outcome that meets their perception of value — whether it is quality, convenience or price.

“They don’t want to know about or see where the difficulties lie,” he says.

“The offer should be delivered up front to the quality and specifications required — every time.”

“Customers who are servicing end consumers like retailers, for example, are seeking supply chains that will increase their value proposition to their customer, and as a result improve their performance,” Stewart adds.

“This requires the role the supply chains play in adding value to be clearly understood and the ability to solve problems and make the most of opportunities in an innovative, creative way.”

Stewart points to the InteLog Big Picture Workshop process as the most successful and acclaimed methodology for organisations wishing to improve their supply chains.

“The process provides workshop stakeholders with an understanding of the principles of lean and agile supply chains and the importance of customer and consumer alignment,” he says.

“Having gained this understanding the Big Picture Mapping of the current state and its many issues provides the basis for the stakeholders to develop a view of a future ideal state.

This then provides a pathway to improvement and the areas of the supply chain to focus on and implement changes that will produce profitable growth.”

In terms of future opportunities, Stewart says InteLog is seeking engagements with organisations that realise they are part of a larger system with a part to play in influencing and improving the capability and performance of the supply chain network as a whole.

“This attitude and positioning will increase the opportunities for all stakeholders, as well as within their own business,” he says.

“A holistic approach will not only unlock significant cost reduction opportunities but will also enable an enhanced capability and conduit for innovation. A larger pie will ensure profitable growth for all.”

This is the key to moving Australian supply chains from mediocre performance to world’s best practice and leaders,” Stewart says.

Carbon Trading Expo and Conference

Companies rushing to meet the 2010 deadline for carbon emission caps announced by the federal Minister for Climate Change and Water, Penny Wong, will be able to research their options at a new carbon trading event in Melbourne.

The Australian Carbon Trading Expo and Conference 2008, which will run from 29 April to 1 May at the Melbourne Exhibition Centre, is the first of its kind in Australia.

It comes on the back of a survey released by PricewaterhouseCoopers just a week ago that showed only 22 per cent of all businesses surveyed had acted on climate change and most of these had simply created new internal policies and procedures.

“The Australian Carbon Trading Expo and Conference will provide a forum for business owners to gather much needed independent information on how best to address the issue of emissions reduction,” says organiser, David Conolly of Australian Exhibitions & Conferences.

“Failure to do this will leave many businesses vulnerable to avoidable costs.”

“Legislative reporting of carbon emissions for many businesses commences July 1 this year – less than six months away — and now the government has announced caps from 2010,” he says.

“This is not just about the environment but risk management. If addressed in a timely manner both business and the environment are winners.”

Environmental building consultant Jan Brandjes said the federal government’s caps signalled it was time for business to act.

“The caps announced by Penny Wong today are certainly a big incentive for the business community to confidently start planning for the new ‘carbon economy’ of Australia,” Brandjes says.

“The proposed permit system will allow companies to ‘ease’ into this new economy in a more responsible manner.”

“The problem businesses face though, is that there’s really not a lot of information out there about the steps that they need to take, which is why this show and conference is such a breath of fresh air.”

Visitors to the Australian Carbon Trading Expo and Conference 2008 will meet with federal and state government advisory bureaus, energy providers, carbon offset providers, carbon market consultants and brokers and providers of suppliers of energy efficient, environmentally-friendly technologies to assist businesses in reducing their carbon emissions.

Sponsored by CarbonPlanet, MTECH Australia and Origin Energy, the Australian Carbon Trading Expo and Conference 2008 will run from April 29 to May 1 2008 at the Melbourne Exhibition Centre concurrently with the Safety In Action trade show.

For more information, phone Australian Exhibitions & Conferences Pty Ltd on 03 9654 7773, email actexpo@aec.net.au or visit www.actexpo.com.au

Road funding under budget spotlight

The Australian Government’s road funding has survived the initial round of budget cuts to be announced this week by the Minister for Finance and Deregulation, Lindsay Tanner.

Mr Tanner announced $643 million in savings as part of the Government’s efforts to put downward pressure on inflation and interest rates.

These initial Budget cuts do not affect the Government’s road funding.

In a speech to the National Press Club, Mr Tanner warned that the Government would make much greater cuts in the 2008-09 Budget, in addition to the $10 billion in savings it identified during the election campaign.

“The amount of spending cuts that we will have to find is somewhere higher than $3 billion — $3 billion to $4 billion of spending cuts, possibly even higher,” he told the Press Club.

Mr Tanner says the Government’s razor gang would not stop its work after the Budget.

The razor gang will carry out an intensive, program by program review of Government spending and tax concessions, with the aim of announcing more savings toward the end of 2008.

Tanner says spending discipline was a critical priority for the Government, and that the establishment of Infrastructure Australia would ensure there was genuine rigour and accountability in infrastructure spending.

The Australian Trucking Association is continuing to press the Government to carry out its road funding commitments and to maintain its total road funding under the AusLink 1 and 2 land transport programs.

The Government is will bring down the 2008-09 Budget today.

Competition for talent drives innovation

Logistics Recruitment released today the 2008 Supply Chain & Logistics Employment Market Survey Report; the second annual survey report dedicated to the Supply Chain and Logistics industry.

According to Kim Winter, Group Managing Director, Logistics Recruitment, the 2008 survey highlights critical factors influencing the industry.

During a year of continuing global economic strength, a strong demand for resources has resulted in a high demand for skilled executive talent through our all verticals of the Supply Chain and Logistics industry worldwide.

“No more than now has our industry experienced such pressure on the most valuable resource of any organisation — our people,” Winter says.

“As the ever-expanding middle class drives demand for consumer goods in the worlds emerging economies, we are seeing dramatic increases in demand for talent across the Mining, Resources, Engineering, Construction, Oil and Gas, Manufacturing sectors.”

“Ultimately the Supply Chain and Logistics sectors provide the vital infrastructure for this economic growth,” he says.

The 2008 survey respondents represent a wider geographical sample than 2007 and therefore provide a useful insight into the emerging trends affecting human resources across different regions including Europe, Africa, the Middle East, Asia, North America, and Australasia.

It highlights that regions of higher demand for talent are being forced to offer greater flexibility in workplace conditions, benefits and flexibility as a means of retaining and attracting talent.

Key findings from the survey include human resource trends related to: salaries levels and expectations, talent attraction and retention strategies, industry education levels, and some economic projections.

“The increasing trend toward greater mobility, nationally and internationally, is indicative of how employees are interested in relocating to advance their salaries, skills and career opportunities,” Winter says.

“It is evident that employees are not only attracted to premium economic and career opportunities but that the Supply Chain & Logistics industry globally is competing for a limited talent pool and that geographical boundaries are becoming less defined.”

Logistics Recruitment thanks survey respondents, and acknowledges the leading industry organisations and their members who participated in this year’s survey.

  • Australian Logistics Council (ALC),
  • Supply Chain & Logistics Association of Australia (SCLAA),
  • The Chartered Institute of Logistics and Transport (CILT),
  • Transport and Logistics Centre – Australia (TALC),
  • Logistics Association Australia (LAA)
  • Supply Chain Logistics Group – Middle East (SCLG),
  • Supply Chain Asia (SCA).

Logistics Recruitment welcomes feedback and input on areas of interest and inclusion for the next survey.

2008 EMPLOYMENT MARKET SURVEY REPORT RESULTS…

Supply Chain & Logistics roles & positions

What role or area do you currently work in?

Overall Findings

Top two areas of employment

Logistics

24.37% of the total respondents are employed in the field of Logistics. 51.40% classified their role as a Logistics Manager.

Supply Chain

18.85 % of the total respondents are employed in the field of Supply Chain. 25.00 % classified their role as a National Supply Chain Manager.

Annual Salaries

What is your annual salary bracket?

(Australia, New Zealand, Europe, Middle East & Singapore)

Overall Findings

11.42% of the total respondents indicated that they are on an annual salary of $51,000 – $60,000.

11.15% of the total respondents indicated that they are on an annual salary of $61,000 – $70,000.

10.98% of the total respondents indicated that they are on an annual salary of $71,000 – $80,000.

Comparison to the 2007 results

In the 2007 report 12.39% of the total respondents indicated that they earn $51,000 – $60,000 per annum, with the 2008 results showing that there has been an increase in the people who earn between $71,000 to $80,000 a year.

Education & Qualifications

What is the highest qualification that you have completed?

Overall Findings

24.93 % of the total respondents indicated that they have completed a Postgraduate Degree.

21.03% of the total respondents indicated that they have completed an Undergraduate Bachelor Degree.

Staff Forecasting

Has there been a shift in staff levels in the current financial year?

Overall Findings

60.07% of the total respondents indicated that staff levels have increased in the current financial year. This compares to 54.18 % in the 2007 results.

Comparison to the 2007 results

In the 2007 report 54.18% of the total respondents indicated that staff levels had increased. The 2008 results were 60.07%, showing a 5.89% increase.

Do you believe that staff levels will increase, decrease or remain the same in the next 12 months?

Overall Findings

57.14% of the total respondents believe that there will be an increase in the next 12 months. This compares to 49.00 % in the 2007 results.

Comparison to the 2007 results

In the 2007 report 49.00% of the total respondents believed that there would be an increase in staff levels in the next twelve months. The 2008 results were 57.14%, showing an increase of 8.14%.

Skills Shortage

Areas within the industry that have been difficult to recruit in? Please list all areas.

Overall Findings

13.92 % of the total respondents indicated that the most difficult field to recruit in is Logistics.

To what extent is the skills shortage affecting your business?

Overall Findings

54.34 % of the total respondents believe that the skills shortage is affecting their business to some degree.

Career Relocation

Have you relocated due to your career within the last 3 years?

Overall Findings

43.62 % of the total respondents indicated that they have relocated due to their career within the last three years.

If you did relocate was this domestic or international?

Overall Findings

55.63 % of the total respondents indicated that they have relocated interstate/domestically due to their careers.

Would you consider relocating for your career in the future?

Overall Findings

83.13 % of the total respondents indicated that they would in fact consider relocation for their career in the future.

If you relocated in the future would it be domestic, international, or either?

Overall Findings

67.14% of the total respondents indicated that they would relocate either domestic or international.

What are the key issues you would consider prior to undertaking relocation? Please list all considerations.

Overall Findings

87.31 % of the total respondents would consider salary.

80.54 % of the total respondents would consider career development opportunities.

60.65 % of the total respondents would consider family.

Business Activities and Growth

Business activities and growth in the last year — have they increased, decreased or remained the same?

Overall Findings

82.23 % of the total respondents indicated that business activities and growth have remained the same in the last year. This compares to 78.11 % who indicated that business activities and growth had increased in the 2007 results.

Compar
ison to the 2007 results

In the 2007 report 78.11% of the total respondents indicated that business activities and growth increased in the last year. The 2008 results were 82.23%, showing an increase of 4.12%.

In the next 12 months will your business activities and growth increase, decrease or remain the same?

Overall Findings

82.36 % of the total respondents believe that business activities and growth will increase in the next 12 months.

Comparison to the 2007 results

In the 2007 report 78.61% of the total respondents forecasted that there would be an increase in their business activities and growth. The 2008 results were 82.36%, showing an increase of 3.75%.

To order your full copy of the Salary Survey & Market Report log on to www.logisticsrecruitment.com and request a copy of the report.

Toll takes to Somerton

The Somerton Logistics Centre.

The Somerton Logistics Centre.

Toll Holdings is set to become the anchor tenant of the $135 million Somerton Logistics Centre (SLC) in Melbourne.

The transport and logistics giant has signed a short-term lease contract with the centre at an annual cost of $1.7 million. Under the contract, which is one of the largest leases in the region this year, the company will rent units 1 and 2 on the property, reportedly to service Coles supermarkets.

The SLC, one of the biggest industrial property projects in Australia, occupies an area of around 125,000 sqm featuring eight warehouses.

SLC director Nigel Hunt said it was the second time that the centre worked with Toll and its anchoring at the site would have a positive impact on prospective tenants. 

“Having a big name gives other tenants confidence, and it also puts us in an active position in the industrial property sector. There’s nothing negative about it,” Mr Hunt said.

The Somerton Logistics Centre.

The 22-hectare site sits on the corner of Cooper Street and Hume Freeway, and has direct access to Melbourne’s airports and ports. 

Mr Hunt said there were three or four potential businesses currently negotiating lease agreements with the centre.

He said the centre had a small management team who could directly interact with tenants, which enabled it to provide properties at a cheaper price.

“We don’t charge for administration or management services, which results in a cost saving of $7-9 per sqm. When you think about the size of the space that they use, that’s a significant amount of saving,” he said. 

Toll’s contract with the SLC follows the announcement that it had rented a 27,000 sqm site at ING Industrial Fund’s warehouse facility in Sydney. 

Pioneer centralises all logistics in Melbourne

In response to the prevailing economic conditions, Pioneer Electronics has decided to streamline its local business to improve operational efficiencies.

Over the coming months, Pioneer will be centralising all logistics at its Victorian distribution centre based in suburban Braeside. This will provide a more focused approach to stock management and supply.

The company has traditionally serviced all its Australian retailers through Melbourne, and some years ago it added a Brisbane facility. According to a company spokesperson, however, the impending economic downturn combined with highly efficient distribution networks convinced Pioneer to re-centralise its distribution to the Melbourne centre. The company owns and operates this facility itself.

Sales functions will be retained in all states. However, in line with other businesses in the electronics industry, Pioneer will also be outsourcing its after-sales service.

The move will see Pioneer’s Victorian-based service facility retain a team of specialist technicians, who will provide support to our extensive nation-wide service agency network of over 120 agents, as well as servicing selected specialised products.

Pioneer service agents can be located on Pioneer’s website (www.pioneer.com.au). 

Pioneer remains committed to the Australian market with a company history spanning over 40 years.

 

More time to submit your Smart papers

The deadline to apply to present a paper at Smart 2009 has been extended to October 13, to enable all interested potential speakers the opportunity to submit their abstract.

Under the theme ‘BRIDGING THE GAP with Innovation and New Business Strategy’, Smart 2009 will feature multiple streams, each focusing on a specific area of the supply chain and strategically designed to help address current and future supply chain challenges.

Smart 2009 organising committee chair Denis Horder said: “Due to the introduction of several new streams in 2009, the Smart organising committee is keen to ensure experts in these fields have time to submit their applications so we can guarantee the most highly credentialed line-up of speakers.” 

Speakers are currently being sought to address the following key areas:

•         Energy security and sustainability – including the growing gap between demand and supply of transport fuels, and the repercussions of targeted greenhouse gas emission levels.

•         Infrastructure – the gaps between actual and required investment levels, and the need for new infrastructure to support new energy paradigms.

•         The human factor – the current and growing skills crisis, and injury levels versus ‘zero targets’ in workplace safety.

•         Connected supply chains – specifically, the opportunities offered by connecting geographically dispersed global supply chains, and business strategies, technologies and systems needed to achieve and support future supply chain potential.

Applications to present a paper can be lodged via online at www.smartconference.com.au or contact the Smart 2009 secretariat on (02) 9223 9366, or email admin@smartconference.com.au.

About Smart Conference

Smart 2009 Conference takes place 10 – 11 June 2009 at Sydney Convention and Exhibition Centre, Darling Harbour. Smart 2009 is organised by a committee of independent advisors and representatives from leading industry associations: Logistics Association of Australia (LAA), APICS (Australasian Production and Inventory Control Society), Chartered Institute of Purchasing and Supply Australia (CIPSA), The Chartered Institute of Logistics and Transport in Australia (CILTA), and The Supply Chain and Logistics Association of Australia (SCLAA).

Westpac to join IBM at Smart breakfast seminar

Corporate social responsibility is a key to boost supply chain performance, and two industry leaders will speak at the Smart breakfast seminar on the topic.

Westpac sustainable supply chain management (SSCM) manager Yvonne Goldsmith joins IBM’s global corporate social responsibility leader Jeffrey Hittner at the first instalment of the Smart breakfast seminar series on October 14 in Sydney.

The seminar will revolve around the theme of corporate social responsibility and supply chain’s role, with Mr Hittner presenting an international perspective on how companies can improve their brand image and competitive advantage through reducing carbon emissions via supply chain management.

Ms Goldsmith will outline how Westpac is working with suppliers in the region to influence the development of supplier sustainability performance, encouraging marketplace change.

Westpac’s SSCM process is now rated by the Dow Jones Sustainability Index as exemplifying world’s best supplier management practice for banks.

Smart 2009 organising committee chairman Warwick Hughes says: “Westpac is clearly showing how embarking on a corporate sustainability program is not only good for the environment, but has a positive impact on the whole organisation and how it is viewed in the broader business community.”

Tickets for “Corporate social responsibility and the supply chain: supply chain’s role in reducing carbon and contribution to growth” are $66 inc GST and include a hot breakfast.

Register online at the Smart 2009 website: www.smartconference.com.au.

About Smart Conference

Smart 2009 Conference is organised by a committee of independent advisors and representatives from leading industry associations: Logistics Association of Australia (LAA), APICS (Australasian Production and Inventory Control Society), Chartered Institute of Purchasing and Supply Australia (CIPSA), The Chartered Institute of Logistics and Transport in Australia (CILTA), and The Supply Chain and Logistics Association of Australia (SCLAA).

Dredging completed amid economic meltdown

Aerial view of Port Phillip Bay.

Aerial veiw of Port Phillip Bay.

The Port of Melbourne’s $1 billion channel deepening project has marked a milestone by completing dredging at the entrance to Port Phillip Bay, but the port’s self-claimed success has faced questions.

The port’s CEO Stephen Bradford said the dredging operations had been completed on time and budget, meeting all environmental requirements.

He said that the channel deepening project was progressing smoothly, with 40 per cent complete after 238 days.

“To carry out this work at the entrance on schedule and within budget is a significant achievement when you consider that prior to this project it was not known technically whether the dredging could actually be done,” Mr Bradford said.

Victorian Ports Minister Tim Pallas said the $1 billion project would bring significant economic and social benefits to the state, with port activities currently supporting almost 14,000 jobs. 

“Channel deepening is expected to generate $2 billion to the national economy over the next 30 years, and create more than 2,000 jobs,” Mr Pallas said.

He said the completion of the project by the end of next year would enable larger vessels to dock in Melbourne, lifting the port’s container freight throughput almost four-fold.

However, the economic prospect of the project is being questioned as Victorian exports have declined by 10.5 per cent since 2001, suggesting the biggest beneficiary of the project would be importers, not exporters.

Mr Pallas rebutted, saying container shipping was growing by almost 8 per cent each year.

“Even if the economic environment were to dampen we will not see anything other than the continuing growth and movement towards containerisation,” he told AAP.

“That growth will continue, there is absolutely no doubt about that, and our projections show we have got something like 2.2 million TEU actually moving through the Port of Melbourne at the moment. Projections are in the next 30 years that we’ll see something like eight million TEU.”

Mr Bradford said dredging was the most technologically challenging and ecologically sensitive aspect of the project, involving the removal of hardened material from the top of rocky banks.

“It is the first time in the port’s history that the entrance has been deepened without the use of explosives, a practice ceased in 1986.

“We have conducted underwater video surveillance at the entrance and further monitoring activities are scheduled. In fact, surveying at the entrance is scheduled to be ongoing for 10 years.”

He said the port would now start cleaning up residual materials at the entrance to meet the requirements of the project’s environment management plan.

Victoria calls transport summit

Victorian Premier John Brumby will convene the Victorian Transport Summit this Friday, bringing together experts in urban planning, transport and the environment to further investigate the state’s transport needs.

The summit forms part of a consultation program to shape the Victorian Transport Plan, to be released by the end of the year.

Roads and Ports Minister Tim Pallas said the transport plan aims to tackle urban congestion and put in place a longer-term freight strategy.

“Big decisions need to be made to ensure we deliver the right short, medium and long-term actions and, in turn, build the best transport system for Victoria,” Mr Pallas said.

“Many thousands of Victorians have had their say on transport through submissions and local transport forums…We want to make sure as many Victorians as possible have their say before these decisions are taken.”

The Victorian Government has completed a 15-week submissions process in July, receiving over 2,300 comments from the public and industry. Eight local transport forums with local councils and community groups also followed.

“The next step is to talk to leaders of industry and peak bodies, which we will at the Victorian Transport Summit,” Mr Pallas said. 

The summit will be based on a discussion paper titled ‘Your Say’ to provide an outline for the challenges the state currently faces in transport planning.

Public Transport Minister Lynne Kosky said: “The paper provides some examples of what Victorian’s have been telling us about road and public transport congestion, the environment, freight and regional challenges.

“The submissions process and local transport forums have shown how passionately our communities feel about transport and the wide range of views that are held. I’m sure the Victorian Transport Summit will also generate robust discussion.”

The results of the summit will be incorporated into the establishment of the transport plan in the next few months.

The ‘Your Say’ paper can be viewed at www.transport.vic.gov.au.

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