Schenker opens in Canberra

Schenker Australia has added another new facility in Australia’s capital city, Canberra.

This will strengthen Schenker’s national transport and logistics services as the Canberra warehouse will be the new hub between Melbourne and Sydney.

The facility size is 600 square meters, has an open span building with access via three full height roller doors and pallet racking available for 100 pallets.

Schenker in Canberra is located at Unit 3/10 Tralee Street Hume ACT 2620. Schenker Australia continues to expand its business.

The new Canberra-Hub will boost efficiency in national transport across NSW, ACT and VIC. The facility also boasts full PDA “scratch on glass” technology for all clients and products.

Peter McInnes, Canberra Facility Supervisor for Schenker Australia says the great capabilities of the company’s new site will allowthe use of full transport, distribution and catering for the distribution of products across the ACT.

“This covers delivery of small parcel freight to white goods and larger oversized articles,” he says.

“Also storage of palletised products, cross docking for sensitive clients and container unpacks is utilised as a transport hub between Sydney and Melbourne.”

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.

ATA defends fuel tax rebates

The Australian Trucking Association (ATA) has used its pre-Budget submission to the Australian Government to defend the fuel tax credit system, which saves trucking operators 18.51 cents per litre on their fuel costs.

ATA CEO, Stuart St Clair, says that many people in the trucking industry are concerned the Government could abolish the fuel tax credit system or change its environmental criteria to exclude older trucks.

“Under the fuel tax credit system, businesses that operate heavy diesel vehicles with a gross vehicle mass of greater than 4.5 tonnes can claim an 18.51 cents per litre credit on the fuel tax they pay, provided those vehicles meet one of four environmental criteria,” he says.

“The fuel tax credit plays an absolutely vital role in keeping costs down for trucking operators, exporters and consumers.”

“We estimate that eliminating the fuel tax credit system would increase the costs of many operators by about 22 per cent,” St Clair says.

The cost increase would flow through to every part of the economy and would put upward pressure on the price of the everyday goods and services used by Australian families.

“It would increase a typical urban family’s grocery bills by about $86 per year and a typical rural family’s grocery bills by about $103 per year,” he says.

The ATA’s submission urges the Government to maintain the existing fuel tax credit system and its environmental criteria, which allow operators with pre-1996 vehicles to get credihttp://www.atatruck.net.au/policies_submissions.htmlts as long as they maintain their trucks properly.

“Our industry operates more than 215,000 heavy vehicles that were manufactured in or before 1996. That’s 58 per cent of Australia’s entire heavy vehicle fleet.”

It’s absolutely essential that older vehicles remain eligible for the credit, provided they are maintained properly,” St Clair says.

“For example, a trucking operator can meet the environmental criteria and claim fuel tax credits by joining TruckSafe and maintaining its trucks in accordance with the TruckSafe maintenance program.”

St Clair says the Labor Party had supported the fuel tax credit system when it was in Opposition, but he emphasised that the industry still needed to remind the new Government of its importance.

The ATA’s pre-budget submission also puts the industry’s views on road funding, heavy vehicle charges, road regulation reform, and the need for more and better rest areas.

The submission can be downloaded from the policies and submissions area of the ATA website, www.atatruck.net.au/policies_submissions.html

Brisbane presence for Famous

Moving into the Port of Brisbane has enabled one of Famous Pacific Shipping’s associates in Australia to provide a new one-stop-shop for importers and exporters.

Famous Pacific Shipping (FPS) Queensland moved into the first of 10 large warehouses planned as part of a $100 million investment initiative at the Port Gate Estate at Brisbane.

Michele Dougal, Managing Director of FPS Queensland says FPS has become the first NVOCC and freight forwarder to move to the new Port Gate Estate, on which development first started in 2006.

“The Port Gate Estate incorporates office space and a container park and operates as a one-stop shop for freight forwarding, customs broking and import and export businesses, all on the one complex,” she says.

“FPS has quickly outgrown its existing purpose-built facility since 2005, so the move to the new complex accessing all the latest warehousing facilities, is timely.”

“With over 500 sq m of new office space and full customs support, including bonded warehousing, a container and vehicle washing facility, as well as an empty container facility FPS is well placed to build on the portfolio of services offered to shippers.”

“This state of the art facility is creating further opportunities for FPS Queensland to continue to expand our air and seafreight activities, adds Dougal.

”The address of the new office and warehouse is: Famous Pacific Shipping Queensland, Warehouse 1, Level 1, Portgate, Osprey Drive, Port of Brisbane, Queensland, Australia.”

In Australia, Famous Pacific Shipping has freight hubs in Brisbane, Fremantle, Melbourne and Sydney.

The company’s service portfolio includes door-to-door sea and airfreight services, local transportation and distribution, Customs clearance, warehousing, project management and logistics.

Tailor Made -IBS Australia

IBS Australia has taken the industry vertical approach, developing best-of-breed software and services tailored to the unique business requirements of its customers’ industries.

“Each sector is very different,” says CEO Rajiv Parrab.

“IBS works not only with supply chain associations such as GS1 and the Supply Chain Council, but also with industry bodies that are in line with our target verticals.”

IBS provides an integrated solution — with software, services, consulting, hardware and financing – supported by industry knowledge and personnel who have gained experience working with organisations and customers across various verticals.

“While IBS is an international company, it has strong local knowledge in specialised business solutions,” Parrab says.

“For example, our automotive and publishing software was developed in collaboration with automotive distributors and publishers in Australia.

Because IBS Publishing and IBS Automotive software were both developed in collaboration with the publishing, book distribution and automotive industries respectively,

IBS has demonstrated a competitive advantage with these software products.

“With its tailor made features, IBS Publishing is the most widely-used publishing software in the world, while IBS Automotive has about 70 per cent of the Australian Automotive market,” Parrab says.

Success stories include Gill & Macmillan, whose publishing business increased nearly 80 per cent while its third-party distribution business increased by 70 per cent since installing IBS Publishing software.

“Most significantly, the staff employed to cope with this exceptional growth increased by only 27 per cent,” Parrab says.

“Similarly for Norwood, their IT department shrunk from 5 to 1 staff member and staff savings have also been achieved in other functional areas since implementing IBS Automotive software.”

The IBS rapid implementation methodology has also ensured that customers’ needs are met with speed and service.

“We ensure our customers receive a smooth transition, with minimal disruption to business operations,” Rajiv Parrab says.

“NU Fruit, a wholesaler of fresh produce in Victoria, had their IBS Enterprise system implemented within 3 months, even during the peak season of the business, while Kia Motors Australia had IBS Automotive software rolled out within 2 months.”

Parrab believes customers are looking for flexibility and functionality, both key strengths of IBS Australia.

“Customers are searching for software partners who understand their business requirements and can help them implement functionality and maintain competitive advantage,” he says.

“They certainly are also looking for a supply chain solution that can provide a reliable and stable platform, that is scalable, enabling them to cope with the challenges of their growing business.”

According to Parrab, companies must change how they operate in order to grow and flourish, so flexibility must be built into the very core of IT systems.

“Mergers, acquisitions, new product lines, new target countries and territories are all part of the on-going development of an organization and it is vital that existing systems can be adapted to cope with these scenarios,” he says.

Looking ahead, Parrab says IBS Australia will take well-differentiated Enterprise solutions and services to the large and mid-market in specific verticals, such as automotive, publishing & book distribution, food & beverages, pharmaceutical, electro, consumer durables and paper & packaging and office supplies.

“As a ‘one-stop shop’ for companies who are optimising their supply chain, IBS offers fully integrated software solutions, hosting, services, consulting, implementation, and financing,” Parrab says.

“IBS is able to provide consultation and implementation expertise in developed economies, where companies are looking for replacement strategies and aligning their business processes to the latest supply chain and industry best practices.”

“IBS is also helping companies in developing countries such as China, India and other parts of Asia to establish operations.”

Read more about IBS Australia

“World’s largest rough-terrain telehandler

Manitou North America will introduce what it claims is the world’s largest rough-terrain telehandler at ConExpo in March.

The MHT 10160, which has a 36,000lb (16,329kg) maximum capacity and a 15,430lb (6,999kg) capacity at the maximum lift height of 31 feet 10 inches (9.7 metres), is the first heavy rough-terrain telehandler to be launched in the US market.

Powered by a 175 hp Tier 3 Mercedes turbo diesel engine, the machine has a capacity of 9,260lbs (4,200kg) at its maximum forward reach of 18 feet (5.5 metres).

It has a two-speed hydrostatic transmission.The MHT telehandler has all the standard operating features of the Maniscopic line, like three steering modes and frame levelling for a heavy duty machine capable of demanding applications.

MHT 10160 specs at a glance

  • Lift capacity: 36,000lb (16,329kg)
  • Lift height: 31’ 10” (9.7 metres)
  • Capacity at maximum height: 15,430lb (6,999kg)
  • Forward reach: 18’ (5.5 metres)
  • Capacity at maximum forward reach: 9,260lb (4,200kg)
  • 175 hp Tier 3 Mercedes turbo diesel engineHydrostatic transmission
  • Four-wheel drive
  • 10/10 degrees frame levelling

Sense Plan Respond – Oracle

In today’s highly competitive marketplace, Oracle Australia’s general manager for Manufacturing, Retail and Distribution Scott Dawes says businesses are looking for a sup­ply chain solution that will help them embrace a customer-centric supply chain model in order to sense, plan, and respond to real-time demand signals across a network of partners, suppliers, retailers, and customers.

“By adapting to make what they sell, rather than sell what they make, manufacturers can finally realize the long-held goal of having their products arrive on the doorsteps of retailers, distributors, and cus­tomers at exactly the right time and in exactly the right volume,” he says.

“Consider the challenges for manufacturers associated with mass customisation. Customers now are requiring suppliers to provide highly configured, made-to-order products with more specialized features.”

“Rapid product proliferation and shrinking product life cycles also are forcing company decision makers to not only innovate across product portfolios, but also find new approach­es for bringing products to market.”

“Globalisation, along with the rise of outsourc­ing and offshoring, is another major challenge.

“The globalisation of the supply chain brings rewards, such as cheaper labour costs, but also new risks, such as longer supply chain lead times and the need to keep more local inventory.”

“Finally, companies no longer can afford to tolerate profitability shortfalls when supply and demand are not aligned,” Dawes says.

“Of course, this misalignment always has been a major problem. Manufacturers have long strug­gled to respond to sudden spikes in demand or an unexpected inventory glut.”

“Today, however, they cannot make the wrong assumptions because it is less likely excess inventory will be sold and more likely unsatisfied customers will turn to competitors for what they want.”

According to Scott Dawes, Oracle’s approach is to provide solutions with the ability to sense, influence, and fulfil demand with best-in-class demand management and real-time sales and operations planning.

“We focus on supporting demand flow processes, lean manufacturing, and integrated execution (MES) systems within both discrete and process manufacturing in a single environment that drives manufacturing excellence,” he explains.

“Ensuring a completely secure, standards-based, scalable IT infrastructure (end-to-end and top-to-bottom) to enable global supply net­works is also essential.”

“In addition, Oracle offers a best-in-class global transportation management and logistics solution that allows companies to manage and operate their entire transportation function within a single Web-based application.”

“Operations are enhanced with demand visibility, powerful analytics, and optimization solutions for a leaner, more efficient supply chain.”

Dawes points to the JD Edwards Enterprise One family of applications, Oracle Demantra and Oracle Transportation Management which include supply chain planning, execution and management as the most widely implemented of the company’s supply chain solutions.

“We’re seeing increased demand for supply chain plan­ning, transportation management and product lifecycle management applications in particu­lar,” he says.

“All of these applications provide high ROI in a fast timeframe.”

Oracle sees consolidation as a positive for the Australian supply chain industry, as companies strategically combine with others to strengthen product offerings, accelerate innovation, meet customer demand more rapidly and expand partner opportunity.

“For instance, Oracle’s acquisition of Agile, a product lifecycle manage­ment (PLM) applications vendor, was a strategic acquisition,” says Oracle president Charles Phillips.

“PLM is evolving into an enterprise-wide discipline that spans multiple product design systems and interacts with a wide-range of enterprise applications to manage the com­plete product lifecycle from concept and design, to production, sales and service.”

“Profitable product innovation is critical to product-based industries, making PLM one of the fastest growing application segments,” Phillips says.

“The addition of Agile, which will serve as the foundation of our PLM offering, will further Oracle’s strategy of delivering industry-specific enterprise applications and allows us to offer yet another strategic application to SAP customers.”

Cummins Filtration implements RedPrairie WMS

Cummins Filtration, the leader in filtration, exhaust, coolant and chemical technology for all engine-powered systems, is realising significant inventory, shipping, space utilisation, and resource management benefits from implementing RedPrairie’s WMS.

Cummins Filtration implemented the RedPrairie solution “out of the box,” in its Salt Lake City facility with only minor modifications.

Based on the success of that facility, the Company plans to implement RedPrairie WMS in two more sites.

“Prior to RedPrairie, our WMS was part of an order management system that was completely paper-based with antiquated functionality,” says Mark McKinney, Manager of Logistics Strategy for Cummins Filtration.

“To overcome the visibility, inventory, and shipping challenges associated with our prior WMS, we turned to RedPrairie as a best-of-breed WMS solution provider for industrial manufacturers.”

Cummins Filtration opted for a “no modification” implementation for a number of reasons, including a faster implementation, no annual maintenance fees for modifications, improved testing, and assurance of easier and faster implementation of other RedPrairie solutions.

“We have received significant benefits from implementing RedPrairie’s WMS in our Salt Lake City facility, including a 38 per cent reduction in shipping credits, an improvement in inventory accuracy to 99 per cent, and improved space utilisation and resource management strategies,” McKinney says.

“As they grow, we believe Cummins Filtration will continue to realise benefits from the WMS and other planned RedPrairie solution implementations,” says Mike Mayoras, CEO of RedPrairie.

“Cummins Filtration is a prime example of the value and success a company can have implementing a best-of-breed solution like RedPrairie.”

Structural Shifts -Manufacturing outlook

While a global approach will drive the success of Australian manufacturing, the sector is fundamentally tied to the health and growth of the domestic economy.

Australian Industry Group associate director Economics and Research Tony Pensabene says the extent and flow on effects of consumer spending are very important, along with the state of the housing and construction market, the exchange rate and the Australian dollar, which is currently having major implications on the export market.

“I’m of the view that we’ll see some slow down in consumer spending,” Pensabene says.

“Interest rate adjustments late last year and early in 2008, will eventually have an impact leading to a slower growing economy.”

Pensabene says the competitive threats and challenges arising from the economic growth of China will continue to have an effect on the Australian manufacturing industry as will increased demand and supply opportunities in the region.

A recent AI review sparked by concern about competition from China found Australian companies adapting through a range of methods.

“They’re making better use of supply chains, including sourcing offshore if necessary to maintain competitiveness,” Pensabene says.

“There’s also a better use of global supply chains, with big companies moving offshore to take advantage of growing markets and low cost advantages.”

“We’re also seeing much more focus on new product development and innovation, which is particularly significant in the auto and TCS sectors.

About a third of sales now come from new products that have been developed over the last three years.”

“In addition, organisations are bringing in new technology, developing leaner production processes, driving down costs and improving efficiencies,” Pensabene adds.

“The real message is that manufacturers are adopting a range of strategies to gain a competitive edge,” he says. “Companies that are dealing with China look right across their whole operations for ways to drive better efficiencies and lift their productivity.”

“The overall evidence for the economy is that the manufacturing sector is becoming more capital intensive,” Pensabene observes. “Companies are trying to move quickly in terms of updating their technology and the strong Australian dollar is helping them bring in capital equipment at a cheaper price.”

Despite this, Pensabene foresees a softening in investment over time, as the economy slows with the impact of interest rate rises.

“Competitiveness is built around having the latest technology and keeping a fair degree of profits churned back into capital investment,” he says.

Pensabene says the manufacturing industry has taken supply chain issues on board as businesses recognise that it’s one area where big advances can be made.

“In recent years there’s been a focus on lean production process,” he says

“But I think increasingly that the focus has shifted to looking at suppliers, supplier relationships, the source of supplies and offshoring parts of production.”

While skills shortages have been a problem for a number of years. Pensabene observes the industry strategising to meet the problem head on.

“Essentially companies are importing skills where they have to and up-skilling their existing staff to make them more flexible and adaptable,” he says.

“They’re also becoming more capital intensive in order to reduce their labour ratios. They’re also making better use of supply chains, getting better value from production processes.”

Tony Pensabene predicts the future of Australia’s manufacturing industry lies in export opportunities in the growing Asia and US markets.

“At the same time I think we’ll see a refocusing of the industry towards whatever the changing needs of consumers are in terms of domestic demand,” he says.

In terms of underlying, growth potential, Pensabene tips off the pharmaceutical and health care sectors, which are increasingly responsive to changes in lifestyle preferences and manufacturers of advanced technology such as tooling, robotics and CNC’s, a sector constantly experiencing elaborate transformation.

Pensable points to the mining, engineering food auto and low value TCF sectors for growth opportunities through export.

“The structural shifts we’re seeing are likely to stay in place for the next five years,” he says.

“With the exception of technical textiles and low value products, our manufactured exports are falling, but it’s balanced by an increase in those sectors geared to commercial engineering and construction activity, which will be boosted by the housing market.”

Tony Pensabene believes the future of Australian manufacturing is in its own hands.

“It’s about how the sector positions itself globally, the nature of the operations, the sort of efficiencies being introduced and the level of investment,” he says.

Manufacturers choose Infor

Infor has announced that it has signed seven new Infor ERP SL, formerly SyteLine, customers in Australia and New Zealand in the last calendar quarter.

The customers, who include Precision Australia, Total Tooling, Purple Pig, Hamer Group, Freedom Wigs, APL, and Mintt Corporation, selected Infor ERP SL for its ability to support processes that are specific to their businesses, as well as its technology architecture which allows it to adapt to their long-term growth.

The newly-signed customers demonstrate the need in the Australian and New Zealand markets for proven manufacturing software that does not require extensive customisation.

These customers join the more than 2,500 manufacturers worldwide who rely on Infor ERP SL for its strong functionality serving the needs of manufacturers in industries like industrial equipment and machinery, high tech and electronics, aerospace, metal fabrication, furniture, specialty vehicles, and medical devices.

Infor ERP SL is designed by domain experts to keep implementation times down. It can support a range of discrete manufacturing modes, from engineer-to-order through repetitive.

The software allows manufacturers the flexibility to switch back and forth among work orders, production schedules and Just-In-Time/Kanban.

It features Advanced Planning and Scheduling to synchronize material and capacity with customer orders, robust materials and inventory management capabilities to track inventory across multiple sites, and integrated modules to maintain quality control over day-to-day procedures associated with receiving, manufacturing and shipping.

Infor ERP SL is ideal for companies like Precision Australia, part of the Precision Valve Corporation, the world’s largest supplier of aerosol valves.

Gary Young, Precision’s Manager, Information Technology, Asia Pacific, says Infor’s industry experience stood out from the competition.

“With Precision operating across seven countries, six time zones and five languages, we needed an ERP system that could easily adapt to our business.

We chose Infor ERP SL because it is a manufacturing solution that incorporates other modules such as finance, as opposed to the traditional software model of a finance-centric application that tries to manage manufacturing,” Young says.

“With Infor ERP SL, we have an intuitive solution that addresses our needs. It enables us to focus on driving our business growth rather than spending time configuring software.”

New Zealand-based Hamer Group has also selected Infor ERP SL. The Hamer Group companies manufacture and distribute power engineering and automation products.

The companies within the group needed a long-term solution that would support their expansion plans. “Infor ERP SL was chosen by the Hamer Group as the system to enable growth, development and flexibility for the future.

A further consideration was the close relationship with Infor and its partner EMDA, who will provide continued guidance as the companies go forward,” says David Hawes, General Manager, CTI (part of the Hamer Group).

The latest version of Infor ERP SL features service-oriented architecture (SOA) capabilities through the Infor Open SOA framework, allowing manufacturers to remain agile in a changing business environment.

For instance, Infor Open SOA enables manufacturers to more easily upgrade and introduce new applications, such as Infor’s Enterprise Asset Management or Supplier Relationship Management solutions.

Customers can also use the open standards-based interfaces of Infor Open SOA to integrate other vendor software or their own custom software innovations, without the business disruption that is typical of other approaches to software integration.

“Manufacturers need software solutions that can adapt to their unique business processes and that can also grow and support their businesses for the long term,” says James Brackenrig, Infor’s vice president and managing director for the Pacific region.

“Infor ERP SL has more than 20 years of manufacturing experience built into the software.”

“It gives manufacturers a foundation for future growth through advanced capabilities like service-oriented architecture,” he says.

“This combination is a key reason why manufacturers in Australia and New Zealand are increasingly turning to Infor.”

Channel Deepening Project to proceed

The Port of Melbourne Corporation’s (PoMC) Channel Deepening Project will proceed as scheduled following a Federal Court of Australia decision to dismiss an application filed by opponents.

Speaking after the ruling, PoMC Chief Executive Officer, Mr Stephen Bradford said The Channel Deepening Project is expected to commence on 1 February 2008.

“PoMC has the responsibility to deliver this project by the end of 2009 while complying with what is quite possibly the most rigorous Environmental Management Plan ever applied to a dredging project anywhere in the world,” he says.

“Port Phillip Bay is a valuable asset to the port, as it is to all Victorians, and we embark on this project in the most environmentally responsible manner.”

“This important project is critical to ensuring Melbourne remains Australia’s largest container port,” Bradford adds.

“The port will remain strong and competitive and this will safeguard Victorian jobs now and in the future. Importantly it will also drive business confidence in Victoria.”

“I would like to thank the court for its diligent and thorough review of this matter,” he says

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