First-ever worldwide drones standards unveiled

The ISO Draft International Standards for Drone Operations have been released for public consultation, with the final adoption of the world’s first drone standards expected in 2019.
The rules, which form a voluntary code of practice, are the first set of international standards for drones.
“Most drone makers are doing everything they can, but some don’t use existing materials. They may not come from an aviation background, for example. Everybody across the industry believes drones can be safe and of great benefit to mankind. Operators and service providers alike are keen to establish a baseline,” Robert Garbett, ISO drone expert said.
The standards include a flying “etiquette” around no-fly zones, geo-fencing technology that can stop flights in restricted areas, flight logging requirements as well as training and maintenance standards.
They also call on flyers to keep drone hardware and software up to date and have a human monitor for all flights.
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logistics growth illustrated with airliner with a globe and autoloader with boxes in a container

Australian guide to help parcel deliveries in Europe

Following the release of the Australian Freight Labelling Guideline in March 2016, the European Committee for Standardisation (CEN) has also chosen the GS1 Serial Shipping Container Code (SSCC) to help transform cross-border parcel deliveries to and from Europe.
Based on GS1 global supply chain standards and best practice, the Australian Freight Labelling Guideline provides guidance to industry on how to physically identify and label logistics and transport units to support efficient transport management processes from point of origin to destination.
The Technical Specification (TS 17073) for Postal Services – Interfaces for cross-border parcels released by the CEN, and the Australian Freight Labelling Guideline released by GS1 Australia and the Australian Logistics Council (ALC), both use the SSCC as the primary identifier for freight units to provide efficiency, interoperability and visibility across the supply chain.
GS1 Australia has been actively working with the local Trade and Transport Industry for many years to improve the efficiency, security and visibility of freight using GS1 standards,” said Bonnie Ryan, senior manager – trade, transport & heavy industry at GS1 Australia.
“The Australian Freight Labelling Guideline was provided and referenced in the guideline published by the CEN, highlighting that our advanced work in standardisation of freight labelling is ahead of Europe.”
The ultimate goal is to transform cross-border parcel delivery services using a single, common parcel label that includes a parcel identification code.
The GS1 SSCC exists for importing and exporting to Europe and will help to increase value by enabling more delivery options and reduce costs by increasing efficiency in the value network.
The announcement by CEN is the result of a collaborative effort by representatives from postal organisations, online retailers, couriers, express and parcel service providers. It is part of the European Commission’s strategy, Digital Single Market: Bringing down barriers to unlock online opportunities.
“This is a major step forward to truly innovate cross-border parcel delivery services in Europe. One of the main causes of difficulties in parcel delivery is closed standards, leading to proprietary networks and resulting in unfavourable market conditions for online merchants,” explained Walter Trezek, co-chairman of the e-Logistics Working Group of Ecommerce Europe and leader of CEN’s work on the standardised label.
GS1 is pleased the CEN has designated the GS1 Serial Shipping Container Code (SSCC) to uniquely identify parcels and enable interoperability between all parties in the parcel delivery network. The GS1 SSCC is a natural choice since many companies already use it and other GS1 standards in their businesses.
By implementing the new CEN parcel label that uses open global standards, formerly closed networks may now be connected to create an end-to-end delivery network. Senders of parcels will be able to use the same label for all parcels. All handlers of the parcel will be able to use the SSCC to more easily track the parcel’s journey from sender to consumer and, if needed, back to the sender for a consumer’s return.
“The CEN parcel label and SSCC introduces exciting possibilities for online retailers that want to offer consumers an exceptional delivery experience, and at less cost,” said Miguel Lopera, president and CEO at GS1.
Chairman of GS1 in Europe Bruno Aceto added: “By using the same label and the SSCC, parcel delivery companies can easily collaborate to meet their customers’ expectations in terms of service options, flexibility, visibility and reliability. Furthermore, they will eliminate various costly activities that do not add value for their customers.”
GS1 will continue to contribute to CEN’s initiative to transform cross-border parcel management and welcomes the opportunity to collaborate with Ecommerce Europe and other organisations to jointly promote the common parcel label.
More information is available by emailing Bonnie Ryan, senior manager – trade, transport & heavy industry at GS1 Australia at

New property lease accounting standards to be adopted in Australia

In February the Australian Accounting Standards Board (AASB) announced that it will be adopting  the International Accounting Standards Board (IASB) new requirements on dealing with property leases on company's accounts. 

The AASB have decided to adopt the standards following the release of the IFRS 16 Leases which set out to improve the financial reporting of company's leases.

The new standards will treat leases as one as opposed to the current arrangement of being either a finance or operating lease.

Therefore moving forward all companies will be required to recognize leased assets (as a right to use the property) and financial liabilities to pay rent on their balance sheets.

For all leases with a term greater than 1 year the leasee will need to recognize depreciation of lease assets separately from interests on lease liabilities in the income statement.

Bringing all leases onto balance sheets will give investors, banks and analyst a complete picture of a company including lease liabilities so a more accurate assessment can be made of company's liabilities.

The new standard will be an added administration burden for companies, especially companies who lease multiple properties (all existing leases at the time will need to be recorded as there are no grandfathering arrangements), in compiling and recording this information which will include all rental payments and rental escalation over the lease term.

With the requirement for all leases to be shown on balance sheets this may force some companies to review their leased portfolio requirements moving forward.

  • The changes may result in companies looking more closely at the ideal lease term for their business and the impacts of longer term leases on the company's balance sheet compared with shorter term leases. This will be particularly challenging in the Design and Construct pre commitment industrial markets where landlords demand longer lease commitments.
  • As opposed to long term leases companies may decide to purchase their next premises as opposed to lease. Once again this may be more of a consideration in the industrial market where long term leases are agreed and companies sometimes invest significant capital into the facility to meet their operational requirements. Companies may look to implement a strategy where larger facilities or strategic locations are owner occupied with smaller facilities and branches leased to maintain flexibility.
  • A more considered approach may be taken by companies to reduce their lease footprint and rent costs with consolidating more of their oeprations to save on rent costs.
  • What will be the best way to structure the next lease? Some matters that a company may need to consider are whether all leases should be negotiated on an effective lease basis, the rent review mechanisms and also whether an Option term should be negotiated or not. On the later under the new standard Option lease payments only have to be included when the lessee is reasonably certain to extend the period or when an event occurs within the lessee control which effects the exercise of Options. 

ALC Forum Communique

The logistics industry will have to attract broad community support if it is to achieve regulatory reform and approval for major infrastructure projects, according to speakers at the Australian Logistics Council Forum 2016, held last week in Sydney.

More than 250 people attended Australia's premier freight logistics and supply chain event, with senior figures from across industry and government emphasising the need for action across a range of fronts to improve the efficiency of Australia's supply chains.

ALC Forum 2016 had a particular focus on improving frieght efficiency in New South Wales, where the state's freight is expected to double by 2030.

During his opening of the Forum, new ALC Chairman, Ian Murray, stressed the need to ensure Australia has the right infrastructure in place, operating efficiently, to underpin the continued growth of the logistics sector and of the Australian economy.

Other major forum points included:

  • Industry and government need to step up their efforts to work together to progress heavy vehicle road reforms to achieve more efficient freight movements 
  • Work needs to be done to convince the public of the benefits of logistics investment and reform, particularly to ports’ landside infrastructure, to underpin continued economic growth and community wellbeing
  • Corridor preservation must feature more prominently in jurisdictions’ long-term planning documents, with a greater buy-in from all levels of government
  • Improving rail access to Australia’s major ports, as well as their linkages to key inland intermodal facilities, is critical to increasing port capacity and decreasing road congestion in our major cities 
  • Industry and government need to work closer together to improve the efficient delivery of parcels in CBD areas brought about by the growth in e-retailing 
  • The inland rail line has to be built, with efficient connections to the ports in Melbourne and Brisbane, to support Australia’s future freight effort and to move north-south freight out of the Sydney basin
  • Practical steps need to be taken to maximise the economic and environmental benefits of an efficient maritime freight sector 
  • ALC to take a leadership role to increase diversity and inclusion in the logistics industry 
  • ALC to consult with regulators on behalf of industry on proposed changes to Chain of Responsibility provisions contained within the Heavy Vehicle National Law 
  • Opportunities exist to increase the efficiency of air freight movements at Sydney Airport

Launch of new transport and freight labelling standards embrace the rise of the automated supply chain

The Australian Logistics Council (ALC) and GS1 Australia have officially launched the new Australian Standards for Frieght Labelling and EDI developed by the ALC Supply Chain Standards Work Group for the Australian Transport & Logistics Industry. 

The standards were launched at the ALC Forum 2016 in Sydney and Michael Kilgariff, ALC Managing Director and Bonnie Ryan, Industry Manager -Trade and Transport from GS1 Australia in front of approximately 250 senior industry and government leaders attending Australia's premier frieght logistics event.

The Australian Transport Standards include the ALC endorsed Australian Freight Labelling Guideline and Australian Transport EDI User Guides to provide one common label format to identify frieght and one common file format to exchange data throughout the freight transportation  process.

A new Australian Industry Glossary will also assist as an easy reference to common industry and GS1 standards terminologies.

Speaking at the ALC Forum 2016, Bonnie Ryan, Industry Manager -Trade and Transport from GS1 Australia said the Australian Transport Standards for Freight Labelling and EDI is an extensive body of work in consultation with the ALC Supply Chain Standards Work Group.

"The Australian transport industry's freight system is at the heart of our economy. The adoption of the Australian Transport Standards for Freight Labelling and EDI will give us the opportunity to improve freight efficiency and better connect all modes of transport in the Australian transport and logistics sector," said Ms Ryan.

Based on GS1 global supply chain standards and best practice, the Australian Freight Labelling Guideline provides guidance to industry on how to physically identify and label logistic and transport units to support efficient transport management processes from point of origin to destination.

To support the physical identification of freight, the accompanying Australian Transport EDI User Guides define the necessary data exchanges required to effectively execute the physical delivery.

Combined, the suite of standards outline a roadmap for industry to move from costly manual processes to full automation.

"This new roadmap will be a game changer in the efficiency, interoperability, visibility and productivity of freight movement across the supply chain," said Michael Kilgariff, ALC Managing Director. 

"With ALC research showing that a 1 per cent increase in supply chain efficiency would increase GDP by $2 billion, the implementation of the Australian Transport Standars for Frieght Labelling and EDI package will support industry's efforts to achieve that goal." Mr Kilgariff added.

David McNeil, Chair of the ALC Supply Chain Standards Work Group and eCommerce Manager for OneSteel says, "The labelling and EDI initiative provides an innovative and effective integration roadmap for the Australian Transport & Logistics Industry, now and into the future. It will be of benefit to all Australian businesses to work together seamlessly and efficiently to grow our economy." 

GS1 joins The Sustainability Consortium

Supply chain standards organisation, GS1, has officially announced its membership with The Sustainability Consortium (TSC)–  an independent, global organisation that works to build a scientific foundation to drive consumer product sustainability innovation.

The membership marks a logical step for GS1, as the organisation also recently released its Global Protocol for Packaging Sustainability Standard which includes over 40 environmental, economic and social indicators for packaging sustainability.

GS1 will provide valuable insights in the Retail and Measurement Science Consortium Working Groups within TSC by contributing to the communication of information throughout the supply chain, as well as to suppliers.

The membership will also give GS1 the opportunity to participate in the seven other sector working groups within TSC including food, beverage and agriculture.

Marcel Sieira, GS1 Australia’s general manager – industry engagement said GS1 is committed to supporting the drive for sustainable consumption and production.

 “We are looking forward to participating in the working groups to ensure that sustainability best practices and measures can be easily converted into global standards. This will ensure that sustainability data on products, packaging and services can be exchanged electronically between business partners using business solutions and service based on GS1’s open, global standards,” said Mr Sieira.

"We are delighted to welcome GS1 to The Sustainability Consortium. Having the knowledge and experience of GS1 within our working groups will enhance our conversations around things like food waste and product data exchange. Members such as GS1 are invaluable to our system and process," said Kelly Unger, member manager at The Sustainability Consortium.

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