Welcome to the future – from MHD magazine

Michiel Veenman

What will the warehouse of 2030 look like? 12 years may not sound like a long time, but with the pace of change being faster than ever before, companies need to start planning now, in order to keep up with ever-increasing market demands.
As people begin to have more disposable income and higher expectations for fast delivery, existing distribution networks may be stretched beyond their capacity to adapt.
E-commerce is a key driver for logistics and warehousing technology as consumers expect rapid responses to order placement. Technology is being driven to pick smaller quantities at an increasing rate.
It’s crucial for the supply chain, logistics and warehousing industries to examine current trends and see how they can best adapt to the changing needs of the market.
Trends in society
The goods that make their way through supply chains ultimately end up with consumers, and consumers not only drive demand, but set expectations for delivery. That makes it valuable to quickly review the macro changes occurring in society as we consider the warehouse of the future. Major trends include:

  1. Aging population

In the coming years, global demographics will change due to increasing life expectancy, declining fertility rates and rising levels of education. The number of people older than 65 is expected to double in the next 25 years, reaching 13 per cent of the global population. This will impact global productivity, personal savings and the labour force. It will also change consumption and spending behaviour on a global scale, impacting production, logistics, warehousing and retailing.

  1. Expanding middle class

The global middle class is projected to more than double between 2009 and 2030, rising from less than 2 billion to nearly 5 billion people. The middle class will then account for 60 per cent of the world’s population (ESPAS, 2015, p.19). Formerly poor populations, while still lagging behind developed countries, will have more purchasing power and greater access to information and communication technologies, and enjoy greater mobility (ESPAS, 2015, p.20).

  1. Urbanisation

Urban population is expected to pass 6 billion by 2045. In 2015, 54 per cent of the world’s population was living in cities; by 2050, that will reach 66 per cent. It is predicted that by 2030, the world will have 41 mega-cities with 10 million inhabitants or more. These developments will impact where goods are produced and consumed.

  1. Growth of the sharing economy

Uber, Airbnb and TaskRabbit are examples of the rapid emergence of the sharing economy. According to PwC, the five key sharing sectors — travel, car-sharing, finance, staffing and music/video streaming — have a potential to generate global revenues of $335 billion by 2025 (PwC, 2015). The concept is already being extended to the construction industry and sharing will eventually come to logistics with its heavy assets and infrastructure.

  1. Globalisation and de-globalisation

Globalisation is the increased movement of goods, capital and workers across national boundaries. Today it is common for companies to develop a product in the United States, manufacture it in China and sell it in Europe or Africa. Some experts also note the value created by the global flow of data and communication, which is often referred to as globalisation 2.0. According to McKinsey, “data flows enable the movement of goods, services, finance, and people. Virtually every type of cross-border transaction now has a digital component.”
While globalisation continues to advance, a counter-movement is also emerging as nationalism and the desire to source products locally, particularly food, grows. This de-globalisation is already impacting the decisions consumers in some markets are making about the products they purchase.

  1. Increased connectivity

The increasing connectedness of people and information is creating greater transparency, better information provision, more critical thinking and more creative and dynamic individuals. It is assumed that pressure for greater accountability and transparency at the different levels of governance — and within industry — will increase.

  1. Changing labour market

With global population growth in developing countries and population aging in developed countries, the demographic landscape is changing at the international level. The projected change in working-age population predicts an explosive workforce growth of nearly 1 billion in the developing countries, mainly driven by high fertility rates. The opposite trend is predicted for the most advanced economies, with a future decline in the working age population (Rand, 2015, p.15). In the short term, this is increasing the value placed on ergonomics and other factors that increase worker satisfaction in developed countries where the labour force is shrinking. In the longer term, China and India may gain importance, whereas Europe may lose traction in global governance and economy (Rand, 2015, p.16).

“It’s crucial for the supply chain, logistics and warehousing industries to examine current trends and see how they can best adapt to the changing needs of the market.”

Trends in logistics
The supply chain is being impacted by a number of trends resulting both from the broader changes in society and advances in technology. These include:

  1. E-commerce

One of the biggest current trends already creating significant disruption in the supply chain is the continued growth in e-commerce. In Europe, the average share of e-commerce in retail was 7 per cent in 2015, 8 per cent in 2016 and projected to reach 8.8 per cent in 2017. Globally, retail e-commerce is expected to increase to 14.6 per cent of total retail, with a market volume of more than $4 trillion (eMarketer, 2016).

E-commerce has continued to experience high growth rates, in part by shrinking the time between order and delivery. Early in its development, consumers often waited a week or more to receive their orders. While this may still be the case in some specialty categories, major e-commerce players now routinely offer two-day delivery on many orders, while next-day and even same-day delivery is increasingly common. This is creating higher expectations among consumers and, as e-commerce expands to new categories such as food, delivery times are continuing to be compressed and e-tailers are exploring multiple options to consistently achieve next day or same day delivery.

  1. Anticipatory logistics

Anticipatory logistics is a process that foresees which logistic services will be needed in the future and in which region. The area where anticipatory logistics has already developed is anticipatory shipping. This allows online retailers to predict orders before they have occurred, based on previous customer behaviour data. This information is then used to ship or move goods closer to the potential customer to enable faster delivery. In the future, we will see anticipatory logistics extend across the value chain.

  1. Customer-centric production/batch size of one

In the future, the customer will increasingly become the centre of production. The result will likely be more localised production, as customers do not want to wait for their individualised product. The trend of 3D printing will drive both the individualisation and the localisation of production. The Adidas Speed Factory in Germany, which allows customers to customise their shoes, is an early example of this trend. (Adidas Group 2015).
The impact on warehousing and logistics are significant: these customised shoes never see a warehouse; they are shipped directly from the factory to the customer, reducing the need for warehouse space. However, the logistics required to support individualised production increase.
Even if we are not yet at a point where ‘batch-size-one’ production is feasible for most products, it seems likely that as this trend develops, companies will move production closer to their customers, and focus on next-shoring and near-shoring.

  1. Omni-channel logistics

Consumers are already using multiple channels for their shopping. They start and end their buying journey at different points and expect lots of information, a certain delivery speed and personalised experiences. This is creating opportunities for retailers to merge the different channels and optimise the whole journey for a customer, rather than optimising each channel separately (DHL Trend Research, 2015).
From the retailers’ perspective, omni-channel logistics can achieve an increase in customer base and loyalty, and also improve profitability. Shoppers using multiple channels for their shopping spend 15-30 per cent more than traditional shoppers.

By 2030, the omni-channel journey of a customer will move further, and the channels might be even more diverse than today. Home delivery is currently the most preferred mode of delivery — nearly 70 per cent of all online shoppers make use of it. Yet around 50 per cent of them have already experimented with buying online and picking up in a store. In a survey by PwC in 2017, 33 per cent of shoppers were open to kerbside pickup, and 28 per cent to pick up at a third-party location. These modes are commonly referred to as ‘click and collect’ and experts assume that these models will grow even more (PwC, 2017). As noted in DHL’s 2015 Trends Report:
“Looking ahead, we expect to see the physical assets of logistics networks being virtualised and managed much more dynamically in line with customer demands. It is also anticipated that there will be more focus.”

  1. Same-day (or faster) delivery

As noted earlier, e-commerce has continued to grow by shaping and meeting consumer expectations for faster delivery. The next frontier is same-day delivery. According to DHL’s 2017 Trend Research: Sharing Economy Logistics report, “41 per cent of US consumers have used programs offering same-day, expedited, or on-demand delivery services.”
Other studies show that 20 to 25 per cent of consumers would pay significantly more to receive items on the same day. These premiums would be up to 3 Euro, 20 RMB and 3 US dollars for the respective regions. Assuming that the customers would have to pay the full costs for this fast delivery, only around 2 per cent of all customers would be willing to pay more than that. McKinsey experts predict that “same-day and instant delivery will likely reach a combined share of 15 per cent of the market by 2020” (McKinsey, 2016, p. 9).

“Industrial IoT networks will soon become an essential component of efficient warehouse management as they provide the connectivity and data on which the smart warehouse will depend.”

Emerging technologies
Emerging technologies will play a significant role in shaping the warehouse of the future and supporting faster delivery. The major technology developments on the horizon include:

  1. Drones

Leading companies like Amazon and DHL are actively exploring the potential of drones and filing patents for the use of drones in logistics. Amazon has patented an idea for an airship that can launch drones over larger cities. At the same time, many people see issues with thousands of drones flying over a city. These include traffic congestion, noise and an obstructed view of the sky. Energy-wise, flying is the most inefficient means of transportation.

In 2030, drones should play a role in the supply chain, although legislation could delay their application. The greatest potential may be in non-urban areas where drones would allow consumers to get the same high-speed, i.e., 2-hour delivery, as is possible in cities.
In addition, larger drones may play a role in connecting cities and even doing long-haul cargo flights. Inside cities, drones could play a role in ultra-high speed or short-distance deliveries. What percentage of parcel deliveries drones will carry in 2030 is still uncertain, but any future distribution plan should be designed to interact with drones.

  1. 3D Printing

3D printing will significantly change the way many products get to market. The most common 3D printing application today is small plastic parts. This is still a slow and, therefore, expensive process, but should become radically cheaper and faster as the technology matures. Plus, more advanced machines that can print complex parts of multiple materials, including metal, will emerge. There are even companies creating machines that will enable 3D printed food. By 2030, it is possible that we will see a three-tier approach to the use of 3D printing:

  1. Some consumers will have cheap, easy-to-use 3D printers that allow them to print small plastic parts based on licensed 3D models they buy online. This would apply to things like replacement parts for home appliances, a plastic case for a mobile phone or toys for children.
  2. For less tech-savvy consumers, or larger, more complicated parts, there will be ‘print shops’ in cities. Consumers could either send their digital designs to be printed or order a product online and never know it was printed on-demand for them. Ideally these print shops would be integrated into urban distribution centres.
  3. Complex industrial applications, which use multiple materials including metal, would be supported by sophisticated 3D printers within manufacturing or service centres.

 
3. Autonomous vehicles
Autonomous guided vehicles (AGV) have been used in warehouses for 30 years. In the next 10 years, the use of AGVs in warehouses will grow exponentially.
There are several drivers behind this trend. First, there is an increasing demand for flexibility in warehousing. Changes in processes, product ranges or distribution channels are all impacting warehouse requirements. Traditional, bolted-down automated conveyor systems are not able to adapt to these changes. AGV provide the required flexibility.
The other driver is the simultaneous decrease in cost and increase in performance of AGV as the core components increasingly support consumer products, such as robotic vacuum cleaners and automated lawnmowers. The economies of scale are much greater for consumer products than for warehouse technology and could drive down the costs of the underlying technologies, such as sensors and navigation systems, used by AGV. A similar impact could result from the technologies used to support self-driving automobiles.
Where early AGV still relied on fixed infrastructures, such as reflectors, floor markings or tags, the technology is available today to allow AGV to navigate with the help of on-board radar and camera systems. Intelligent software and self-learning capabilities interpret the images and instruct the vehicle where to go. This makes the systems plug-and-play and, therefore, easy to deploy and more flexible.
Replacing a large conveying system with flexible AGV could require hundreds or thousands of small AGV operating together. This would have been impossible in the past, but today, and certainly in 2030, the combination of peer-to-peer communication, faster wireless networks and cloud-based processing power enable coordinated operation. As the technology progresses, advances in sensors and electronics will allow AGV to move faster, even when interacting with people.

  1. Mobile robotics

In this context, a mobile robot is an AGV with a robot on top. This allows the robot to drive through the warehouse to where products are stored and retrieve them. For this to work effectively, these robots need robust navigation, vision systems and multi-functional grippers. A level of artificial intelligence is also required to deal with the near-infinite variety of products, shelf configurations and product placement. All of these supporting technologies are advancing rapidly.

  1. IoT connectivity

As more sensors are installed in machines and processes, the opportunity exists to connect groups of machines or entire facilities into IoT networks that provide visibility into product movement and enable capabilities such as predictive maintenance. Industrial IoT networks will soon become an essential component of efficient warehouse management as they provide the connectivity and data on which the smart warehouse will depend.

  1. Big data

Big data programs are already shaping everything from marketing to forecasting. They will also drive key advances in logistics, such as the predictive shipping model discussed earlier and will enable machine learning as the integration of real-time and historical data is what allows machines to continually improve their operation based on past actions.
This article is the first in a two-part series. The next article – to feature in the next edition of MHD magazine – will examine the impacts these trends and technologies have on distribution; what the distribution centre of 2030 will look like; scale, flexibility and the need for automation; and pose a key question of ownership: who will own and operate the distribution centres of the future?
Michiel Veenman is the head of the competence centre, warehouse and distribution solutions at Swisslog. Michiel is responsible for the development of some of Swisslog’s next-generation solutions. Michiel has over 20 years of experience in intralogistics with roles varying from consulting, design and project management to market strategy and innovation. For more information visit www.swisslog.com.
 

DHL signs deal with Chemist Warehouse

DHL Supply Chain has announced a partnership with Chemist Warehouse, which will see the company manage the supply chain for fast-moving consumer goods (FMCG) products and for front-of-store products going into their over 400 pharmacies nationally.

“There are some immediate synergies that enable this to be a beneficial partnership from day one. Many of the FMCG and pharmaceutical manufacturers already store their products in our warehouses. This means we can go from a pre-wholesale environment direct to the Chemist Warehouse pharmacies, and ultimately take a movement out of the supply chain,” Saul Resnick, CEO, DHL Supply Chain Australia & New Zealand, said.

“We are excited about our new partnership with DHL, an expert in the field of global logistics, and we look forward to working with DHL on further improvements to our supply chain to support the rapid and dynamic growth of the Chemist Warehouse business,” Damien Gance, Director and Co-founder of Chemist Warehouse said.

The partnership will immediately streamline the supply chain into Chemist Warehouse and MyChemist pharmacies, by reducing the reliance on wholesalers, Saul said.

Western Sydney Airport selects architect to develop business park

Western Sydney Airport has appointed Architectus to plan a business park on a dedicated 191-hectare parcel of airport real estate.
The business park will offer the opportunity to integrate office, retail, industrial, hotels and conference facilities within 1.5 kilometres of the airport terminal.
“There will be opportunities for businesses to be at the terminal’s doorstep at what will become Australia’s largest international gateway. When the Airport opens in 2026, it will be built for 10 million passengers a year, but we’ve got a blueprint for staged growth to become one of the world’s biggest airports in the decades to follow and our business park will be a key feature,” Graham Millett, CEO, Western Sydney Airport said.
Graham said he expects interest in the Airport’s business park to come from a range of different industries.
“Consultants, tech companies, defence and aerospace, airlines and pharmaceutical are just some of the industries that would enjoy considerable advantage being located at the Airport’s front door,” he said.
Master planning work on the Airport business park is expected to be complete in mid-2019. Work to build Western Sydney Airport began in September, with the business park set to open before Airport operations begin in 2026.

Frasers Property secures prime industrial land in Melbourne

Frasers Property Australia has settled on a 63.4 hectare prime industrial land parcel valued at approximately $40 million. It is located in Melbourne’s northern suburb of Epping.

Situated at 410 Cooper Street, the property stretches through to O’Herns Rd in the north and is abutting the Hume Freeway. It will be located between two full diamond interchanges, allowing unparalleled access to Melbourne’s northern suburbs.
“The Epping acquisition is a significant strategic purchase for the business and will further strengthen our position as one of the leading providers of prime industrial product in Melbourne. It also compliments Frasers Property’s other well-located industrial land holdings in Melbourne’s south east and west.,” Anthony Maugeri, General Manager Southern Region of Frasers Property Australia’s Commercial and Industrial division said.
The new site will accommodate up to 250,000 sqm of built form, enabling Frasers Property to service existing and new customers.
Neighbouring properties to Frasers Property’s Epping land parcel include Melbourne’s Wholesale Fruit and Vegetable Market and large land occupiers such as Mainfreight, Mission Foods, Chemist Warehouse, Visy, Coles, Bluestar Logistics, Linfox and Toll.

Toyota Australia opens new warehouse in Sydney

After more than 11-months of construction, Toyota Australia has officially opened its largest and newest parts warehouse in Western Sydney.
The Toyota Parts Centre NSW (TPC) is located on a 6.4 hectare site close to a network of motorways and major arterial roads at Kemps Creek, New South Wales.
The TPC will house more than 128,000 parts and will ship approximately 27,000 parts daily.
It features more than 50,000m2 of total work area and class-leading safety and technology, including low rack storage systems, which will provide a safer and more efficient workplace as employees will no longer need to work at heights to reach parts.
It will also include full separation of man and machine to build in safety, as well as the first use of a fleet of autonomous intelligent vehicles (AIV) to reduce manual carrying of parts.
The TPC was officially opened at a special event attended by the Honourable Shayne Mallard, MLC; Councillor Ross Fowler OAM, Mayor of Penrith as well as senior executives from Toyota Motor Corporation in Japan and Toyota Australia.
Speaking at the event, Toyota Australia President and CEO, Matthew Callachor said the project had a goal to be the best global Toyota warehouse in safety, efficiency and sustainability.
“Our commitment, as a mobility company, is to address the environmental challenges that we face, and to contribute to an ever-better society,” Mr Callachor said.
“Embracing green building solutions, cutting CO2 emissions and utilising alternative fuel sources go hand-in-hand with our production plans for new vehicles.
“We are already the leader in fuel-saving hybrid technology and we plan to introduce at least five new hybrid vehicles to our range by mid-2020, including the next generation RAV4 next year,” he said.
As part of Toyota Australia’s plans to reduce the TPC site to zero emissions by 2020, 2,200 solar panels were installed on the warehouse roof earlier this year.
So far, they’ve generated 556,000 kWh or enough energy to power 125 four-person households.
The power generated so far – before the building even became operational – has prevented more than 477 tonnes of greenhouse gases from entering the atmosphere.
Other environmental features built into the site include rainwater tanks for irrigation and toilets, as well as energy efficient LED sensor lights.
The building is cleverly positioned at a specific angle to ensure maximum natural cooling, effectively reducing air-conditioning costs.
For the first time outside of Japan, Toyota Australia will be trialling the use of hydrogen powered Toyota Material Handling fuel cell electric forklifts, with a long-term goal of being able to generate hydrogen on site in the future.
Read more:

Toyota opens new parts warehouse in Western Sydney

After more than 11-months of construction, Toyota Australia has officially opened its largest and newest parts warehouse in Western Sydney.
The Toyota Parts Centre NSW (TPC) is located on a 6.4 hectare site close to a network of motorways and major arterial roads at Kemps Creek, New South Wales.
The TPC will house more than 128,000 parts and will ship approximately 27,000 parts daily.
It features more than 50,000m2 of total work area and class-leading safety and technology, including low-rack storage systems, which will provide a safer and more efficient workplace as employees will no longer need to work at heights to reach parts.
It will also include full separation of man and machine to build in safety, as well as the first use of a fleet of autonomous intelligent vehicles (AIV) to reduce manual carrying of parts.
Toyota Australia President and CEO Matthew Callachor said the project had a goal to be the best global Toyota warehouse in safety, efficiency and sustainability.
“Our commitment, as a mobility company, is to address the environmental challenges that we face, and to contribute to an ever-better society,” Mr Callachor said.
“Embracing green building solutions, cutting CO2 emissions and utilising alternative fuel sources go hand-in-hand with our production plans for new vehicles.
“We are already the leader in fuel-saving hybrid technology and we plan to introduce at least five new hybrid vehicles to our range by mid-2020, including the next generation RAV4 next year,” he said.

As part of Toyota Australia’s plans to reduce the TPC site to zero emissions by 2020, 2,200 solar panels were installed on the warehouse roof earlier this year.
So far, they’ve generated 556,000 kWh or enough energy to power 125 four-person households.
The power generated so far – before the building even became operational – has prevented more than 477 tonnes of greenhouse gases from entering the atmosphere.
Other environmental features built into the site include rainwater tanks for irrigation and toilets, as well as energy efficient LED sensor lights.
The building is cleverly positioned at a specific angle to ensure maximum natural cooling, effectively reducing air-conditioning costs.
For the first time outside of Japan, Toyota Australia will be trialling the use of hydrogen powered Toyota Material Handling fuel cell electric forklifts, with a long-term goal of being able to generate hydrogen on site in the future.
 

Meet your cobot: the robot co-worker

Warehouse automation company Vanderlande has developed a ‘cobot application’ (a robot physically capable of working alongside human operators) together with the Finnish trading company in assembly and fastening materials, Würth Oy, and its logistics software partner (Leanware Oy) in a shared pilot project. The cobot is now operational at Würth’s logistics centre in the town of Riihimäki, just north of Helsinki.
Robotic technology has long been used in the warehousing industry for the automated movement of goods. However, the SIR (Smart Item Robotics) is unique, with its utilisation of a robotic unit that is able to work harmoniously in the same area as a human operator and is abe to smartly ‘pick and place’ individual items. In this way, the project addresses one of the key challenges in the market, which is the continuing lack of available and skilled workers.
One of SIR’s most significant strengths is its ability to handle various products without SKU teaching. In addition, intelligent stacking enables the efficient positioning of goods, while products are handled smoothly and securely.
After a lead time of less than two months, SIR has been integrated into Würth’s daily operations alongside Vanderlande’s flexible storage, retrieval and transportation system, ADAPTO, to seamlessly pick products for its customer orders. It can be controlled using the same Leanware system interface as other processes in the Riihimäki logistics centre and represents Vanderlande’s Smart Item Robot to be used in live operations.
“In practice, SIR is now entering school, where it will develop greatly,” said Würth’s logistics manager Terhi Vesala. “In the beginning, we will learn what type of products the cobot can handle, how it can better enhance the picking process on site, and the most logical division of work. We are striving for total efficiency in human and cobot cooperation, so that the strengths of each can be optimised. In other words, we are experiencing what this robot is truly capable of.”
“This pilot project will give us invaluable experience in the continued development of robotic technology,” added Terry Verkuijlen, executive vice president Warehousing and Parcel at Vanderlande. “Thanks to the logistics expertise that exists in Finland and the close partnership we enjoy with Würth, Riihimäki had the ideal conditions in which to bring SIR to life. Of course, this is an early stage in its development, so we will be proactively monitoring the situation, and working closely with Würth and Leanware to further optimise SIR’s capabilities.”
 

Big numbers in new Adelaide food DC

Jim Plouffe

One of Australia’s largest independent grocery retailers will build an $80 million distribution centre in the northern suburbs of Adelaide.
The Drakes Distribution Centre, which has received planning consent from the City of Playford and is fully funded by the South Australian family-owned business, will be located on a 17 hectare site at Edinburgh North.
“This is a major investment in the sustainable future of Drakes Supermarkets in South Australia,” said Drakes general manager Bob Soang.
Preliminary site works have begun on the 104,000sqm development, which will have capacity to house approximately 23,000 separate lines of products including grocery, dairy and frozen foods.
The distribution and logistics centre will also incorporate more than $12 million worth of robotics as part of a high-tech warehouse picking system.
Approximately 300 jobs are expected to be created during construction with a further 120- 250 ongoing full-time equivalent positions when the centre opens. It is expected to be operational by June 2019.
Started in Adelaide in 1974, Drakes Supermarkets now has more than 50 stores across South Australia and Queensland, an annual turnover in excess of $1 billion and 5,500 staff nationally.
“As a local family-owned business we are pleased to create so many jobs in the northern suburbs of Adelaide, which have faced many challenges in recent years,” Soang said.
Edinburgh Parks is just a few kilometres from the former Holden car manufacturing plant, which closed last year.
City of Playford Mayor Glenn Docherty said the Drakes Distribution Centre was a major boost for the economy and would support the forecasted growth of 35,000 new residents in the Playford Council area by 2036.
“As the gateway to the north, we are perfectly positioned to accommodate this development, particularly with infrastructure development such as the Northern Connector Expressway,” Docherty said.
The area is also home to the Northern Adelaide Food Park, a food manufacturing and processing hub that has attracted Coles, Inghams, Infuse Bottling Co and Comfresh. The precinct will also be connected to the South Australian GigCity network of high-speed broadband.
Drakes Supermarkets will continue to operate its fresh fruit and vegetable distribution centre at Pooraka and its meat distribution centre at Beverley.

Paccar Parts opens new DC in Brisbane

PACCAR Parts has officially opened a second parts distribution centre (PDC) in the Brisbane logistics hub of Berrinba, Brisbane, in a move to reduce delivery times to dealers and boost parts availability to customers in its retail network.
The purpose-built facility features just over 6,000 square metres of warehouse space.
The PDC, which shipped its first orders in December, services locations throughout Queensland and northern New South Wales (NSW). By year’s end it will supply locations in the Northern Territory and regional NSW.
The Brisbane PDC will enable PACCAR Parts to offer next day delivery to 74 per cent of its dealers, which represents an increase of next-day deliveries by 68 per cent.
“PACCAR Parts’ mission is uptime – moving customers and businesses forward,” said PACCAR Parts General Manager, Chris Scheel.
“Ensuring the availability of parts and service to customers is the number one thing we need to do in the parts business.
“For primary dealers we’re now delivering next day versus three-four days previously. For VORs (vehicle off road), the dealer drops in an order, we pick the part, and it’s received within hours,” he says – adding that dealers will also benefit from reduced freight cost in these emergency situations.
Delivery speed – and accuracy – will be enhanced by the latest technology installed in the PDC. The Berrinba warehouse is the first PACCAR PDC to use 100 per cent voice pick technology. Staff are fitted with headsets that tell them where to go and what to pick – and also in what order to determine the most efficient pick pattern.
Brisbane Distribution Centre - Front“Voice-pick technology allows our distribution associates to have two hands free and keep their eyes where they are picking. This enhances quality, efficiency and safety,” said Scheel.
Berrinba is also the first PACCAR PDC globally to feature ‘wire guidance’, an electromechanical system that controls vehicle steering by tracking an energised guidewire secured in the floor. This system frees operators from steering responsibilities in very narrow aisles, such as those that stock Paccar’s smaller stock items.
“Fast-moving parts are stored at the front of the building to really speed up velocity,” said Scheel.
Nationally, PACCAR Parts has also been working closely with dealers to improve retail availability. This has resulted in a 45 per cent reduction in emergency orders over the past five years; and 97 per cent retail availability He notes this has been achieved in a period when stock-keeping units have grown by 35 per cent.
This growth will be sustained, in part, by big investments both in product as well as the dealer/retail network. Speaking at the PDC opening, PACCAR Australia managing director, Andrew Hadjikakou, said the company would invest heavily in new product over the next two years, including two new Kenworth models under development (T410 and T360); and the move to locally manufacturing of DAF, starting with the best-selling CF mid-year.
Significant further investment is also slated for PACCAR’s 80-strong retail network, with five new locations added in 2017 and another four to come on line in 2018. At the same time, PACCAR is in the midst of expanding the TRP store network, with new outlets scheduled to open in Ballarat and Pakenham through March and April.
“To support this, this facility has become absolutely necessary,” said Hadjikakou.

Newly-launched uTenant portal the Airbnb of commercial leasing industry

A new online platform called uTenant offers a cost-effective alternative to commercial agents for Australia’s freight, logistics and warehousing industry – drawing comparisons to services such as Uber and Airbnb.
“uTenant is intended to disrupt the commercial leasing industry like Uber has for taxis and Airbnb has for holiday accommodation. For tenants, the web-based portal will curate a list of available properties based on their specific size, location and preferred term of lease amongst other things, and connect them with landlords to arrange inspections, negotiate terms and sign a lease,” explains uTenant founder and director, Matt Sampson.
uTenant is an online commercial property portal that streamlines finding, inspecting and leasing warehouse space for tenants, whilst amplifying property visibility for landlords, helping them to source tenants and lease space cheaper and faster.
The brainchild of entrepreneur and former commercial leasing agent Matt Sampson, uTenant puts tenants and landlords in direct contact and provides a confidential, transparent, cost- and time-effective alternative to the old way of leasing space.
“With uTenant, we have reimagined how industrial warehouse space is leased, providing significant advantages and savings for the two most important parties to the transaction – the tenant and the landlord,” says Sampson.
How uTenant works

  1. Tenants enter their specific requirements into the uTenant portal
  2. uTenant curates a tailored list of suitable properties, which have already been validated as legitimate
  3. Tenants shortlist preferred properties and arranges inspections directly with the landlord or through uTenant
  4. Inspections take place and direct tenant-landlord negotiations commence
  5. On conclusion of a lease, standard fee payable to uTenant by landlord, with uTenant sharing a percentage of this with the tenant (fee sharing n/a in NSW)

 
 
 

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