DHL CEO reveals growth strategy: people, planet and profit

Deutsche Post DHL CEO Frank Appel has revealed that his employee engagement strategy includes sharing purpose and doing good.
In an interview with The Financial Times, Appel explained that he measures three bottom lines at the helm of the global logistics company.
Alongside financial performance, he also measures employee satisfaction, through an annual company-wide survey, and environmental impact via a carbon efficiency index.
Appel noted that it is crucial that companies have, and employees fully understand, a clear purpose, both for engagement and growth.
“What drives people is not top-line growth,” he said. “Our purpose has to be very explicitly understood by every employee. The more it is understood the better the performance of the company.”
Appel explained that his experiences working at consultancy McKinsey earlier in his career showed him that the best companies were those where engaged employees were making the lives of customers easier, and engagement can be achieved by recognising workers’ core needs.
“We have three needs,” he said: love, hope and purpose. “If you treat them properly, humans are very similar.”
DHL’s social efforts include its research and development into green – electric and emissions-free – courier vehicles, and its Go Help initiative, which utilises DHL’s logistics expertise to respond to crises such as the impact of Hurricane Maria in Puerto Rico in 2017.
“We cannot say, ‘Listen, our strategy is to make money and if we have time left then we’ll do something which is good for the society’,” he said. “Our job is to do something good for the society, and to do that, we have to make money – otherwise we can’t continue to invest.”

World’s first electric cargo ship used to haul coal

China has launched the world’s first all-electric cargo ship, though it is being used to haul coal, news site ThinkProgress reports.
China’s Guangzhou Shipyard International ship has a capacity of 2,200 tons and is designed for short-haul trips, with its 1,000 lithium batteries offering around 50 miles of travel on a two-hour charge. While loading and unloading at ports, the ship will charge ready for its next trip, news site ChinaNews.com reports.
State-run news site Global Times shared that the cargo ship is being used to transport coal for electricity generation on the Guangdong Province’s Pearl River, and it could in future be used for passenger travel, or “ro-ro” (roll-on/roll-off) voyages.
Chinese environmentalist Wang Yongchen told the Global Times: “This kind of ship takes into consideration the harmony between humans and nature and can protect water quality and marine life, and should be copied by other ships sailing on local rivers.”

Toll commended for warehouse energy efficiency

Toll Group’s custom-built Nike warehouse in Altona North, Melbourne, has been named Best Industrial Energy Efficiency Project at the National Energy Efficiency Awards 2017.
The National Energy Efficiency Awards recognise excellence in energy efficiency across Australia.
Toll won Best Industrial Energy Efficiency Project for its recent upgrade to the Toll-Nike facility, which provides specialised warehousing, picking and dispatch solutions capable of handling more than 27,000 stock keeping units (SKUs) and two million units of stock.
The upgrade, completed in May 2017, included the rewiring and reprogramming of the facility’s 2.5km conveyor system and 145 electric motors and upgrading 1,300 light fittings to high-efficiency LEDs. The re-engineered and streamlined supply-chain processes reportedly removed waste and reduced energy use by 54 per cent.
“We see environmental sustainability as our corporate responsibility and we’re committed to reducing our environmental footprint,” said Mark Jones, Sustainability and Energy Manager, Toll Group. “Through Toll’s Smarter Green program we are introducing smarter, more sustainable solutions across all of our operations.
“Technology has advanced significantly since Toll and Nike embarked on our supply-chain partnership almost 20 years ago. We’ve been working closely with Nike to introduce ‘smarter green’ innovations and this award is a welcome tribute to our lean journey,” said Jones.
The 18,000m2 warehouse and fit-out include energy-efficient lighting systems that improve visibility and safety, translucent roof sheeting, roof insulation, and an optimised conveyor system.
Ian Black, Outbound Manager, Nike Pacific, said, “The change to LED lighting in our warehouse has been a great initiative and a real win-win situation. We have reduced our carbon footprint and our electricity costs while improving the quality of our lighting. We commend Toll for sourcing an effective, efficient solution and driving the result.”
Toll’s Jones added that plans to have the facility certified carbon neutral are now under way.
“As part of the certification process, Toll will look to have the facility certified under the National Carbon Offsets Scheme and rated by the Green Building Councils Green Star rating system,” said Jones. “We’re also keen to replicate the success of this project at other Toll-Nike locations in future.”

Brambles reports FY17 sustainability progress

Global supply-chain logistics company Brambles, which operates primarily through the CHEP and IFCO brands, has published its Sustainability Review for the 2017 Financial Year.
Brambles operates a circular business model, specialising in the sharing and reuse of unit load equipment including more than 590 million pallets, crates and containers. In FY17, customers’ use of CHEP and IFCO platforms saved 1.6 million trees, 2.5 million metric tonnes of CO2 emissions and 1.4 million metric tonnes of solid waste, the report stated. Transport collaboration projects with over 200 customers initiated by Brambles also removed 64.7 million empty truck kilometres from the world’s supply chains.
In FY17, 99.1 per cent of the timber used by CHEP came from certified sources, and Brambles also eliminated plastic waste and raw material costs by recycling 22,600 tonnes of end-of-life plastic materials into new CHEP plastic pallets and IFCO reusable plastic crates. Brambles operations also achieved a 7.8 per cent reduction in carbon emissions per unit and 14.3 per cent of the electricity it consumed came from renewable sources.
“This has been another fantastic year for sustainability at Brambles, in which we have continued our excellent progress towards our 2020 goals,” said Juan Jose Freijo, Head of Global Sustainability, Brambles. “These achievements are only possible thanks to the end-to-end collaboration between our employees and our customers worldwide.
“Our commitment to sustainability is at the very heart of everything we do. Through the successful combination of our circular, ‘share and reuse’ business model, global scale and supply chain expertise, we are able to reduce operating costs and demand for natural resources, both in our own company and across the world’s supply chains.”

Kalmar unveils fully electric medium-range forklift

Kalmar, part of Cargotec, has launched a new range of fully electric forklift trucks in the 9–18 ton range.
According to Kalmar, the electric forklift trucks offer the performance of a powerful diesel truck without the accompanying air emissions, noise and vibration, and with reduced operating costs.
The battery capacity of the forklifts reportedly enables them to operate for a full eight-hour shift, and Kalmar noted that they are future-proofed to operate with new lithium-ion battery technology.
“At Kalmar, we aim for zero emissions in our offering development across the board,” said Peter Ivarsson, Director – Forklift Trucks, Kalmar. “We’re proud to be the first leading manufacturer to offer a full range of electric forklift trucks with this level of lifting capacity. Our electric machines offer savings in terms of faster and simpler maintenance, making them a winning concept in the long run.”

Input invited for Gladstone port master plan

The Gladstone port master plan, designed to drive economic development in and around Gladstone’s port and protect the Great Barrier Reef, is open for public input, as shared by Minister for State Development and Minister for Natural Resources and Mines, The Hon. Dr Anthony Lynham.
Lynham said the draft master plan sets out growth opportunities and an environmental management framework to ensure job-generating sustainable development.
“Master planning for the priority Port of Gladstone will set the course for growth at Queensland’s largest multi-cargo port,” said Lynham.
“The plan identifies a vision for the area to 2050, including a sharp focus on protecting our iconic reef and safeguarding the outstanding universal value of the Great Barrier Reef World Heritage Area well into the future.”
Gladstone is the first of Queensland’s four priority ports to subject to master planning under laws introduced by the Palaszczuk Government in 2015. Those laws put into effect the Government’s key port-related commitments in the Reef 2050 Long-Term Sustainability Plan.
Master planning has started at Townsville, and preliminary processes are under way for Abbot Point and Hay Point/Mackay.
“Priority ports represent the engines of our economy and master plans will be blueprints on their sustainable development, boosting investor confidence and job growth,” added Lynham.
“We have been working with Gladstone Ports Corporation, the local council, state agencies, the Australian Government and key industry and community groups to prepare the draft master plan, and we are now inviting the community to have its say.”
Submissions on the draft master plan close on Monday, 9 October 2017, and a final master plan and final master planned area will be finalised by mid-2018.

Australian cold-chain industry forms food-waste advocacy group

Australia’s first advocacy group to improve compliance and standards in the handling of food at all levels of the cold chain has been established at a meeting in Queensland.
The inaugural session of the Australian Food Cold Chain Council (AFCCC) on 7 August 2017 brought together representatives from the manufacturing, food transport, refrigeration and cold chain industries.
The Council has reportedly been established in response to mounting community pressure about the costs and environmental damage of food wastage, with the AFCCC positioning itself as an important part of the solution, encouraging innovation, compliance, waste reduction and safety across the Australian food cold chain.
“The new Council is not about promoting an industry – we want to change the industry for the better, said Interim Chair, Mark Mitchell.
“One of our priorities will be to apply whatever pressure is needed in industry and in government to make sure the existing Australian standards for cold chain food handling are properly followed.
“There’s lots of rhetoric in government programs, associations and among food handlers and suppliers about commitments to food waste reduction and cold chain compliance, but little, if nothing, is being done at any level about improving the cold chain, and ensuring that standards are followed. Australia’s track record in efficient cold food handling, from farm to plate, is far from perfect.”
The interim directors of AFCCC are Stephen Elford General Manager Australia New Zealand, Carrier Transicold; Mark Mitchell, Managing Director, SuperCool Australia Pacific; Peter Lawrence, Technical Director ANZ, Thermo King; Kyle Hawker, Transport Manager, Simplot Australia; Adam Wade, National Transport Leader, Lion; Kevin Manfield, General Manager – Products & Markets, MaxiTRANS Australia; plus a nominated individual representing the transport industry.
The AFCCC asserts that on average, Australians waste 860kg of food per person annually, with at least five per cent of Australia’s greenhouse gas emissions coming from food wastage.
Mitchell noted that Australian industry is well placed to attack the issue.
“Performance across the cold-food chain can be improved with better equipment and handling processes as well as with improved monitoring and assessment to determine where the weaknesses lie,” he said.
The new advocacy group’s first priorities will be contributing to both the development of the National Food Waste Strategy and becoming part of the CRC designed to address food waste and fraud.

Green achievements for US corrugated packaging industry

The US-based Corrugated Packaging Alliance (CPA) has released a new corrugated industry life cycle assessment (LCA), showing the corrugated industry’s environmental progress, including a 35 per cent reduction in greenhouse gas emissions between 2006 and 2014.
The reduction was achieved through increased recovery of old corrugated containers (OCCs) and use of energy generated from renewable, carbon-neutral biomass and decreased overall use of fossil fuels.
“The LCA results demonstrate the efforts our mills and converting facilities are making to reduce the industry’s supply chain impact on the environment,” said Dennis Colley, Executive Director, CPA. “Sustainable forest procurement, along with the high old corrugated containers recovery rate provide for a well-balanced system of fibre and supports the sustainability of our industry’s products.”
The LCA examined the effects of a one kilogram industry-average corrugated product manufactured in 2014 on seven environmental impact indicators: global warming potential, eutrophication (run-off from land causing excessive richness in bodies of water), acidification, smog, ozone depletion, respiratory effects, fossil fuel depletion and four inventory indicators: water use, water consumption, renewable energy demand and non-renewable energy demand.
The recovery rate for OCC increased from 72 per cent to 89.5 per cent in the period studied – as more is recovered, less goes to landfill, thereby reducing methane emissions.

AusPost launches e-vehicle trial in Brisbane

A three-wheel electric delivery vehicle trial has begun in Brisbane, servicing Coorparoo, Woolloongabba and East Brisbane over an eight-week period. The e-vehicle has three times the parcel carrying capacity of the motorbikes currently used by Australia Post for deliveries – it can hold up to 100 small parcels and 1,200 letters at a time.
Angela Creedon, Queensland State Manager, Australia Post, said Brisbane is a perfect city for the next phase of the electric delivery vehicle rollout with locals increasingly embracing online shopping, and more small parcels being delivered than ever before.
“We know that residents in Brisbane love online shopping. In fact the yearly growth rate in the area is over eight per cent,” Creedon said.
“Our parcels business generates over 70 per cent of our total revenue. Ten years ago parcels contributed less than 25 per cent of our revenue.
“As our business transforms so too are the jobs that our workforce are doing. A few years ago, we equipped our posties so they can deliver small parcels and this latest initiative will allow them to deliver even more – helping to ensure their roles remain meaningful well into the future.
“While letter volumes have nearly halved, this is another example of how Australia Post is looking at ways to keep our posties delivering for Australians.”
The pilot comes after Australia Post announced a $197 million before-tax half-year profit, driven largely by a 5.7 per cent volume growth in the parcels business and postal losses reduced to breakeven.
The e-vehicles are already successfully used in Germany and Switzerland, offering carrying capacity, improved rider safety and lower vehicle emissions.

Linfox invests in Darwin intermodal facility

Linfox has completed the construction of a new intermodal facility in Darwin.
The logistics provider partnered with Vaughan Constructions to design and construct the facility.
Situated next to the Darwin railhead, the 3,000m2 purpose-built site will create up to 15 ongoing local jobs, the company said.
The site features a chilled storage area to ensure temperature-controlled products can be be safely stored during transit.
“Each year, [our] intermodal team shifts more than 15 million pallets for Australia’s retailers using its multi-modal freight network,” said Linfox CEO, Annette Carey.
“Linfox has an extensive footprint in the Northern Territory, with sites in Darwin, Katherine, Tennant Creek and Alice Springs. This new investment increases our capacity and makes it easier for our customers to move inbound and outbound goods throughout the region.”
Carey said the Darwin facility would complement the capabilities of Linfox’s long distance road, rail and coastal shipping distribution services and followed the recent expansion of its Healthcare and Defence logistics capabilities.
The facility will also deliver on Linfox’s environmental commitment with a 100kW battery ready solar system to reduce the site’s carbon emissions. It also features rain water harvesting and high-efficiency LED lighting.

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