Budget must focus on freight: ALC

The Australian Logistics Council (ALC) has released its 2019-20 Federal Budget submission, saying this year’s Budget must establish the right framework to support the implementation of an effective National Freight and Supply Chain Strategy.
“The Federal Budget in April will be the last one delivered prior to the release of the National Freight and Supply Chain Strategy,” said ALC CEO Kirk Coningham.
“The ALC has been a long-term advocate for this strategy. Our members understand that a national economy needs to adopt a consistent national approach to freight movement.
“However, the best Strategy in the world counts for little if there are insufficient resources in place to support its delivery.
“Accordingly, ALC’s submission encourages the Federal Government to use this year’s Budget to establish the right frameworks to support the delivery of a Strategy that will meet the needs of our industry and the Australian economy as a whole.
“To help achieve this, ALC makes 19 recommendations addressing two core objectives – ensuring those responsible for implementing the strategy have adequate resources, and supporting specific infrastructure, safety and regulatory initiatives that will improve the performance of our supply chains.
“These include recommendations to support key Federal agencies, as well as state and local governments, in delivering significant reforms around planning, corridor protection, road pricing and data collection that will allow us to better monitor performance and more effectively target infrastructure investment.
“Additionally, there are specific recommendations to support crucial infrastructure and regulatory initiatives, such as better freight rail linkages to ports, infrastructure to hasten uptake of electric vehicles in the freight sector, maintenance of the industry Master Code for heavy vehicle safety, and development of a National Rail Plan that will finally deliver the regulatory consistency the industry seeks.
“Implementing these recommendations as part of the 2019-20 Federal Budget will significantly improve the efficiency and safety of Australia’s supply chains, and contribute to the delivery of a more effective National Freight and Supply Chain Strategy,” Mr Coningham said.
 

Electric trucks are the way to go: ALC

The Australian Logistics Council (ALC) is disappointed that the final report of the Senate Select Committee on Electric Vehicles has missed clear opportunities to boost the uptake of EV in the freight logistics sector.
“There is clearly a willingness within this industry to move towards greater use of EV in freight delivery. It is disappointing that the committee has not supported that positive attitude by explicitly addressing freight vehicles in its recommendations to the government,” said ALC CEO Kirk Coningham.
“It is especially perplexing that the committee recommends establishing national EV targets for light passenger vehicles, light commercial vehicles and metropolitan buses – but is silent on establishing a similar target for heavy vehicles.
“It is similarly disappointing that the report did not take the opportunity to recommend a review of the Australian Design Rules, to that they can better accommodate the unique size and shape of some electric freight vehicles.
“ALC is pleased that the report does make recommendations on some of the issues raised in our submission, including the need to facilitate the rollout of charging infrastructure and ensure the energy network is able to sustain a reliable supply of energy to power EV.
“However on the whole, these recommendations fall well short of the type of action that is needed to hasten the uptake of EV in the freight logistics sector.
“One opportunity that was clearly missed was a recommendation to establish a Low Emission Vehicle Contestable Fund, similar to one already operating in New Zealand.
“Indeed, the report specifically refers to the New Zealand fund in its commentary and notes its benefits – but does not follow through by recommending a similar initiative for Australia.
“Just last week, the New Zealand Government announced a further round of projects to be supported though its fund, including projects specifically focused on the freight sector designed to showcase the capabilities of long-haul heavy electric vehicles.
“Similar initiatives will need to be adopted in an Australian context if freight logistics operators are to be encouraged to incorporate EVs into their own operations. This is something ALC will be pursing in its pre-Budget submission and in ongoing discussions with the Federal Government.
“The ALC’s Electric Vehicles Working Group will continue to pursue these matters with all political parties in the lead up to this year’s federal election,” Mr Coningham said.

Australia Post to operate largest electric vehicle fleet

A new order for an additional 1,000 three-wheeled electric delivery vehicles (eDV) by Australia Post is set to make it the nation’s largest electric vehicle fleet operator.
Australia Post group chief operating officer Bob Black said the 1,000 eDV boost its existing fleet of electric postie vehicles – including electric pushbikes – and creates a range of benefits for posties, customers and the environment.
“We are proud to soon be operating Australia’s largest fleet of electric vehicles, and hope this will set the standard across Australia,” Mr Black said.
“With parcel volumes growing – on average, close to 10 per cent each year for the last three years – and letter volumes declining, we’re always looking for ways to ensure our posties continue to play an important and sustainable role in the community.
“These vehicles offer additional carrying capacity, so our posties can deliver more parcels than ever before directly to the customer’s door – and can perform additional functions, such as collecting mail from street posting boxes.”
Along with delivery benefits, Mr Black said the electric vehicles also offer added safety and environmental protections.
“The eDV are safer than the traditional motorcycle. They are easier to see on the road, more stable, have increased rider protection and lower on-road speeds, all of which reduce a postie’s exposure to incidents and serious accidents.
“We started trialling eDV in 2017 and we’ve since deployed them in all states. We have worked closely with our posties to make improvements along the way.
“Our posties love the eDV because they demonstrate our commitment to providing safer and more sustainable employment into the future, given consumers are sending fewer letters and relying more and more on their postie to deliver their parcels.
“They will also help us achieve our commitment of reducing our carbon emissions by 25 per cent by 2020.”
Deployment of the additional 1,000 vehicles is expected to start from June across all states.
Along with the additional 1,000 eDV Australia Post will also roll out an additional 4,000 electric pushbikes, bringing its total to 5,980 over the next three years.
 

Coles signs on the dotted line for $950m automation project

Coles Group Limited has executed definitive contracts with WITRON Australia Pty Ltd to develop two new automated ambient distribution centres, one each in Queensland and New South Wales.
WITRON Australia is a subsidiary of WITRON Logistik + Informatik GmbH, the German-based builder of automated distribution centres that deliver improved product availability for customers and cost efficiencies.
Concurrently, Coles has also entered into agreements for lease catering for the development of the distribution centres at Redbank in south-west Brisbane with Goodman Group, and Kemps Creek in western Sydney, with a joint venture of Goodman and Brickworks Limited.
The term of each lease will be 20 years.
The agreements with WITRON, Goodman and Brickworks are subject to the satisfaction of certain property related conditions precedent including development approvals.
Coles CEO Steven Cain said: “With the signing of these important contracts, Coles is one step closer to implementing a key element of its supply chain modernisation strategy. This will provide a safer working environment for our team members, lower supply chain costs, enhance our overall business competitiveness and make life easier for our customers by having the right offer in the right location.”
The total capital expenditure relating to Coles’ supply chain modernisation project for the two automated distribution centres is approximately $950 million over six years.
Coles also said it will recognise a pre-tax provision of $146 million in its 2019 interim result as a significant item, relating to lease exit costs and redundancies for existing distribution centres that will be closed over a five year period.
 
 

Bridgestone to buy TomTom for A$1.45bn

Bridgestone Corporation (Bridgestone) has announced that its subsidiary Bridgestone Europe NV/SA will acquire TomTom Telematics, the digital fleet products business, for a cash consideration of €910 million (AUD 1.45 billion). The transaction is anticipated to be completed latest in the 2nd quarter of 2019, subject to the satisfaction of customary closing conditions such as regulatory approvals.
TomTom is the number one provider of digital fleet products in Europe, a marketplace with very diverse in legal, commercial and cultural requirements. Its digital fleet business has successfully demonstrated its ability to operate in complex and demanding market environments and has continued to strengthen its potential to expand globally.
TomTom’s digital fleet product range offers a platform for connected vehicles enabling safer driving, improving productivity and optimising uptime for personal and commercial mobility. Combining this digital fleet business with Bridgestone’s tyre expertise and global service network creates an opportunity that accelerates the company’s effort to become a key partner in the Mobility as a Service (MaaS) landscape with leading tyre products and services.
In addition to reinforcing Bridgestone’s broad and leading portfolio, this strategic investment will also strengthen its position as an innovative leader in the field of tyre design, and tyre predictive maintenance service. Bridgestone will gain unprecedented insights into vehicle and tyre operating conditions and be able to leverage a growing installed user base of 860,000 vehicles communicating 200 million data points per day.
With this acquisition, Bridgestone adds core components to its Tyre and Diversified Products as a Solution (Bridgestone T&DPaaS) strategy.
 

Boeing goes pilotless

Boeing has successfully completed the first test flight of its autonomous passenger air vehicle (PAV) prototype in Manassas, Virginia. Boeing NeXt utilised Boeing subsidiary Aurora Flight Sciences to design and develop the electric vertical take-off and landing (eVTOL) aircraft and will continue testing to advance the safety and reliability of on-demand autonomous air transportation.
The PAV prototype completed a controlled take-off, hover and landing during the flight, which tested the vehicle’s autonomous functions and ground control systems. Future flights will test forward, wing-borne flight, as well as the transition phase between vertical and forward-flight modes. This transition phase is typically the most significant engineering challenge for any high-speed VTOL aircraft.
“In one year, we have progressed from a conceptual design to a flying prototype,” said Boeing Chief Technology Officer Greg Hyslop. “Boeing’s expertise and innovation have been critical in developing aviation as the world’s safest and most efficient form of transportation, and we will continue to lead with a safe, innovative and responsible approach to new mobility solutions.”

Powered by an electric propulsion system, the PAV prototype is designed for fully autonomous flight from take-off to landing, with a range of up to 50 miles (80.47 kilometres). Measuring 30 feet (9.14 metres) long and 28 feet (8.53 metres) wide, its advanced airframe integrates the propulsion and wing systems to achieve efficient hover and forward flight.
The test flight represents the latest milestone for Boeing NeXt. The division works with regulatory agencies and industry partners to lead the responsible introduction of a new mobility ecosystem and ensure a future where autonomous and piloted air vehicles safely coexist. In addition to the PAV, the Boeing NeXt portfolio includes an unmanned fully electric cargo air vehicle (CAV) designed to transport up to 500 pounds (226.80 kilograms) and other urban, regional and global mobility platforms. The CAV completed its first indoor flight last year and will transition to outdoor flight testing in 2019.
“Boeing was there when the aviation industry was born and in our second century, we will unlock the potential of the urban air mobility market,” said Steve Nordlund, vice president and general manager of Boeing NeXt. “From building air vehicles to airspace integration, we will usher in a future of safe, low-stress mobility in cities and regions around the world.”

Open-road automated vehicle trials to start in Victoria

Click here to watch the video.

Cutting-edge automated vehicle technology will be tested in rural Victoria this year in the first on-road trial approved under the new Automated Driving System (ADS) permit scheme.
Acting Premier Jacinta Allan has announced that Bosch has been awarded $2.3 million from the Connected and Automated Vehicle (CAV) Trial Grants Program and granted the state’s first ADS permit for on-road testing of highly automated driving systems.
Last year, Victoria finalised regulations to support the ADS permit scheme, which authorises the use of automated vehicles for testing and development on our roads.
Bosch is currently developing its automated vehicle technology and will begin testing on high-speed rural roads later in 2019. The aim of the Bosch trial is to use the state-of-the-art technology to improve safety on rural Victorian roads – where drivers are five times as likely to be killed in a crash than in metropolitan areas.
The testing will be conducted on roads that expose the automated vehicle to a range of different conditions including traffic, weather and infrastructure.
The $9 million Connected and Automated Vehicle Trial Grants Program is funded through the Andrews Labor Government’s $1.4 billion Towards Zero Action Plan.
In late 2017, VicRoads called for expressions of interest from companies, industry bodies and other transport technology organisations to apply for funding to spur the development of these emerging technologies. which will lead to reduced deaths and serious injuries. Other successful applicants will be announced soon.
The trials will support Victoria’s readiness for CAV technologies and the knowledge gained will provide a better understanding of the infrastructure required to get these vehicles on the road, maximising their safety benefits.

Toll goes e-commerce – from MHD magazine

Toll Group’s new $160 million retail and e-commerce order picking and distribution centre in western Sydney is designed to support the growth of online shopping by processing orders faster and more cost-effectively.
The 32,000sqm DC has 15,600sqm of automation equipment, which picks, processes and packs up to 375,000 items per day, reducing delivery times from days to hours.
Commenting on the project Toll Global Logistics president Chris Pearce said today’s market is placing aggressive demands on retailers to provide fast order fulfilment and delivery, without increasing costs.
“Toll’s investment in the new facility is helping our customers adapt to the new retail environment. The facility is equipped with advanced automation technology so retailers can deliver their e-commerce  orders faster, and in a much more economical way,” said Mr Pearce.
“Retailers will benefit from the ability to deliver goods to their stores and direct to customers faster and more cost-effectively. And shoppers will enjoy flexible order times and faster order processing, receiving their purchases within hours, not days.”
Fashion retail DC
The facility was constructed in collaboration with a major apparel retailer as the anchor tenant. Toll, Dematic and the client collaborated to design the facility with scalability and future growth in mind.
Toll is constantly looking to improve its omni-channel service for customers. This includes offering faster and more convenient delivery options for online and ‘click and collect’ orders.
The new DC offers complete omni-channel capability to help retailers adapt to the changing needs of customers and operates as a shared, multi-user facility.
Safety and environmental initiatives include a 70% reduction in manual handling, packaging optimisation and recycling, LED lighting and rainwater harvesting.
The site is ideally positioned on the corner of the M5 and M7 tollways, enabling convenient transport links for NSW and interstate deliveries.
The DC commenced operations in December 2017.
Toll transitioned customers through that peak period, and was fully live by the end of January, ahead of schedule.
Automated replenishment
Distribution in the DC starts at the receiving door. Cartons are unloaded from shipping containers and moved into storage, before being transported by a fleet of 10 Dematic automated guided vehicles (AGV) to the decant area.
Six double-pallet AGV are used for longer distance runs, together with four single-pallet AGV, which have been customised for the facility to provide additional safety processes around interaction with the decant tables.
The single-pallet AGV take the pallet from the handover point from the double-pallet AGV onto turntables, from which products are decanted and transported into the automation system.

“The new DC offers complete omni-channel capability to help retailers adapt to the changing needs of customers and operates as a shared, multi-user facility.”

AGV benefits
A key benefit of using AGV over forklifts for repetitive materials handling tasks is that they are predictable. They are safe, don’t take breaks, and they efficiently handle repetitive tasks.

“At the moment we are in the process of scaling up,” said Leon Land, senior product manager at Toll.
“We’ve got the ability to add capacity, extra shifts and extra hours within the time frame that we currently operate.
“The DC typically operates 12 hours a day, 5 days a week. The facility is operating at the moment with our anchor client, which is about 50% of the capacity.
“Within the scope and design of this facility, we’ve allowed for seasonality. We can scale up. We can add hours, shifts and weekends to satisfy our customers’ needs.”
He added: “A typical day at the moment is about 80,000 order lines. This utilises about 50% of the design capacity, which is around 170,000 order lines per shift.”
 RapidPICK GTP pick stations
To achieve this, the automated order fulfilment system includes 24 Dematic RapidPICK goods-to-person (GTP) pick stations. Products and order cartons are delivered to operators in a precise sequence, allowing for very high picking efficiency and accuracy.

“Employees are very happy with the new system,” Mr Land said. “It’s ergonomic, safe and there will be no horror stories of people walking mile after mile looking for products in the DC.”
The new GTP pick stations are very intuitive, easy to learn and operate. Users manage their processes via touchscreens, so it is very easy for Toll to train a new team member on the system.
Products arrive at the pick stations from 24 aisles of Dematic Multishuttle, which provides high-density storage and is capable of supplying products in the correct sequence for order fulfilment, at high rates.
Cardboard cartons are created in two sizes by automated carton erectors, with a licence plate applied on creation. These are then held in one of six Multishuttle order buffers ready for release to the pick stations.
Orders are picked and packed at the 1:1 Dematic RapidPICK stations.
“When all items for an order have been picked, order cartons are transported by conveyor via QA and automated invoice insertion to order finishing areas for either e-commerce  or store orders,” said Toll’s general manager for specialty retail Robert Charles.
“Store order cartons go through automatic carton optimising machines, where the carton is cut down in size to suit the fill level, reducing transport costs. Completed order cartons may be held in a Multishuttle pack and hold buffer, before being transported via the despatch sorter and directly loaded into Toll trailers.
“E-commerce  orders are transported to an automated packing bench with semi-automated satchel bagging machines. Satchels are then loaded into despatch cages, and loaded into the back of vehicles with minimal handling,” said Mr Charles.
The facility specialises in split case and full case picking, and currently operates from 6am to 6pm, which caters for the DC’s cut-off times to make sure Toll gets its online and other deliveries to customers on time.
The head contractor
“Dematic’s ability to support us on this project was what led us to them,” added Mr Charles.
“We collaborated very well. We put together a very strong project team to deliver this project.”
“We transitioned our customer during their peak Christmas period and we wouldn’t have done that if we didn’t have the confidence in our new systems and processes,” said Toll’s Leon Land.
“Dematic brought a very strong sense of how to deliver a highly automated supply chain and integrated logistics environment to us.
“We understand these things as a third-party company, but putting together and integrating all the automation, all of the third-party equipment, and bringing that schedule and compressing that schedule and keeping it on track was vital expertise that Dematic brought in this process.”
“Naturally, we’re very proud of the DC,” added Mr Land.
“It’s a highly automated facility. It’s changed the way we operate within the retail environment and everyone who has been involved in the project is very proud of the outcome.”

“A lot of work was done in the first 18 months evaluating multiple options and technology, whether it would be fully or semi-automated.”

Three years in the making
The DC was three years in the making and went live in December 2017. However, a lot of work was done in the first 18 months evaluating multiple options and technology, whether it would be fully or semi-automated.
“Toll looked at the business case justification, and once we got to a point where we agreed that the DC was going to be a fully automated integrated logistics centre, not only for our core customer, but also for other customers, we built at twice the capacity so that we could fulfil requirements for multiple customers,” said Mr Charles.
When evaluating a solution of this nature, Toll takes many disparate factors into consideration. It looks at customer service levels and, for Toll, how to reduce total costs, which is a big part of why businesses make decisions and realise commercial benefits.
“Safety is, of course, our number one priority on site,” he said.
“We work in an environment where there’s a lot of moving equipment, so we’re always looking at ways to segregate personnel from equipment and machine operations, and minimise the potential for accidents,” said Mr Land.
 Toll
The Toll Group operates an extensive global logistics network across 1,200 locations in more than 50 countries. 43,000 employees provide a diverse range of transport and logistics solutions covering road, air, sea and rail to help customers meet their global supply chain needs.
Toll Global Logistics has its own in-house integrated logistics capability. Toll’s team will evaluate an operation and that takes into account the operational requirements, the commercial requirements and the technical.
“After Toll develops the concept and the design levels and throughputs, we engage the market,” said Mr Charles.
“Dematic was a good choice for Toll because we’ve worked with Dematic in the past on a similar facility. There’s a good cultural alignment between Toll and Dematic, and it’s all about the people within the teams to be able to deliver something like this successfully,” he said.
“Once we selected Dematic as a partner, we had two joint project teams to execute the solution, so their involvement and their input into the solution was very detailed.”
In that detailed design phase, a lot of the input was around IT functionality, processes, and Toll understanding what needed to change from the concept to be able to accommodate some of the automation that it was looking to put in, such as Multishuttles and goods-to-person (GTP) stations.
Dematic’s multi-faceted role
“We had a lot of input from Dematic on third-party equipment, such as the carton-optimising machines, which deliver our customers fantastic benefit in terms of our outbound transport.
“Thanks to our carton-optimising system, we have the ability to reduce the carton sizes and ship 30% more cartons in the containers,” said Mr Charles.
“Dematic had a lot of involvement in terms of the IT functionality – the detailed design of the solution and the system – with regards to how do the Multishuttle system and the GTP stations work efficiently together, to ensure we would achieve peak productivity and accuracy,” he said.
“When we looked at the design of the facility, we had to take into account multiple retail customers.”
Flexible system designed for growth
“Some retailers are dedicated store retailers. We have others that are wholesale retailers who deliver to other distribution centres, and we also have retailers that have a large e-commerce  component,” said Mr Charles.
“Our anchor tenant has over 1,000 retail stores. Our second customer is a wholesale business.
“This business is delivering into other distribution centres that then deliver to its network of stores, and this customer also has a very large e-commerce  component. Toll has a lot of customers who have a fashion retail background, so the distribution profile for this facility caters for any fashion retail customer in the industry.”
“However, this site is also capable of handling any retailer,” added Mr Charles.
“So, if the retailer was a stationery retailer or in another line of retailing, the solution that we’ve implemented can cater for that.”
“The facility with the automation that has been implemented is mainly a unit pick-and-pack operation: between 95-98% of the volume goes to the automation as it’s picked at unit level,” explained Mr Charles.
e-commerce  driving growth
“Between 10 and 15% of volume is e-commerce-driven and the growth across the sector is immense,” he said.
“This is one of the key factors we had in mind when we designed the facility. Scalability and flexibility is key in any 3PL. We have multiple customers, their businesses change every year and we have to be able to evolve with them.
“If we look at what we’ve built here, we’ve built two facilities. We’ve got a fully automated one which is Project Enterprise, however, we also have a manual facility across the hard stand, which also has a lot of other customers.
“Therefore, if we need to expand, we have the ability to expand the automation, which gives us the flexibility to grow, or contract, depending on what we need to do,” concluded Mr Charles.
For more information visit www.dematic.com/en-au. You can also watch a video of this DC in action at https://youtu.be/m6iOqRH8NX8. ■

40 million parcels for Christmas

For the first time ever, Australia Post delivered more than 40 million parcels during December, making it the biggest-ever month for parcel volumes for  the organisation.
The growing popularity of online shopping and online sales events, as well as strong Christmas Eve and Boxing Day sales, contributed to an 11.7 percent increase from the previous December.
Australia Post chief operating officer Bob Black said it was all hands on deck over the Christmas period with more than 3,000 extra staff employed across the network to handle the huge volumes.
“We made more than 40 million parcel deliveries in December, and our hardworking posties delivered more than 40 per cent of these, as well as more than 210 million letters,” Mr Black said.
“Our busiest day was Monday 17 December, when we delivered a record three million parcels across the country – by far the biggest day in our history.
“What we didn’t expect was to have a lot of shoppers race to the finish line to post their festive parcels, with our people delivering a whopping 2.7 million items on Christmas Eve – our next busiest day of the month and equal second busiest day in history.”
Mr Black said Australians were embracing online shopping like never before, with Australia Post revealing last year that online purchases had grown by almost 20 per cent in 12 months.
“Our research found that people were buying up to 19.2 per cent more items online. By 2020, we expect one in 10 items will be bought online.
“Online shopping is building momentum as a channel of choice, where customers can make the most of online deals and choose customisable delivery options with Australia Post. This means online shoppers can buy the brands they love no matter where they live,” said Mr Black.

New door factory to be launched in Melbourne

Arbon Equipment is preparing to open a high-speed door manufacturing facility at Laverton North in Melbourne’s west in January 2019. Arbon is the Australian service and distribution arm of Rite-Hite, a global manufacturer of loading dock and industrial facility equipment.
The 1,200-square-metre facility is staffed by a local workforce and is officially endorsed as a ‘Made in Australia’ manufacturer. Local Australian production will decrease lead times on doors from three months to a matter of days with 100% spare parts availability. Product lines include the Rite-Hite FasTrax doors series, including the FR (freezer), Standard, and LD (large driver) models. Doors will be offered in blue and carbon.
Adjacent to the manufacturing space, the recently-opened 450-square-metre Arbon Equipment showroom at Laverton North features a variety of industrial equipment, including doors, loading dock levellers, and vehicle restraints. The full-size equipment displays give customers a chance to take part in comprehensive product demonstrations.
“We look forward to starting production on a variety of Rite-Hite industry-leading doors,” said Arbon Australia general manager Lee Lorenc. “As an addition to the modern showroom space, we’re confident that the ‘Made in Australia’ door manufacturing will allow us to be an even better partner to local companies.”
 
 

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