Praveen Kannan, National Product Manager for SICK’s Industry 4.0 platform, shares how the company’s new Inspection Plus Tracking (IT+) solution is bringing manufacturers up to speed with the Fourth Industrial Revolution.
The votes are coming in, the judges are preparing to deliberate and it’s time to secure your tickets for the 2018 Mercury Awards.
Australian television presenter and actress Livinia Nixon will lead the proceedings, presiding over a night celebrating the very best people, companies, and initiatives Australia’s supply chain industry has to offer.
Theres still time left to submit your nominations – put forward the name of an exceptional individual, company or solution here until voting closes on 12 April.
The Awards ceremony, sponsored by the Victorian Government, the Port of Melbourne, Sick Australia and SEW Eurodrive, will take place on Saturday, 12 May, at Peninsula, on Central Pier in Melbourne’s Docklands.
The Mercury Awards is the official awards program of MEGATRANS2018, the business-to-business trade event focusing on the freight and logistics supply chain, which takes place 10–12 May at the Melbourne Convention & Exhibition Centre.
Head to the Mercury Awards website to purchase tickets for individuals and tables.
After a brief hiatus, the Logistics & Materials Handling Mercury Awards will be relaunched in 2018 for the ninth annual instalment, in partnership with MEGATRANS2018.
The Awards, featuring a new design, will recognise the outstanding achievements and successes of companies across the logistics, supply chain and materials handling sectors.
The Mercury Awards is the official awards program of MEGATRANS2018, a business-to-business trade event focusing on the freight and logistics supply chain. MEGATRANS2018 incorporates all forms of freight transport, logistics and materials handling, infrastructure and storage and warehousing, providing perfect alignment with the Mercury Awards.
Twelve awards will recognise outstanding individuals and organisations across the supply chain:
- Supply Chain Innovator of the Year
- Safety Advocate of the Year
- Best Technology Application
- Sustainability Initiative Award
- Freight Transport Solution of the Year – Road
- Freight Transport Solution of the Year – Rail
- Freight Transport Solution of the Year – Air
- Freight Transport Solution of the Year – Sea
- Outstanding Graduate Program
- Best Storage Solution
- Best Infrastructure Innovation
- Victorian Government ‘Contribution to Industry’ Award
The 2018 Mercury Awards sponsors include the Victorian Government, the Port of Melbourne and SICK. Sponsorship opportunities are still available; for more information please contact Simon Coburn on 03 9690 8766 or firstname.lastname@example.org.
Nominations details will be announced soon.
Measurement inaccuracies causing havoc
There isn’t a company out there that wants to experience revenue loss due to measurement inaccuracies. But with $400 billion worth of goods being sold on the basis of measurement in Australia, there is a lot of room for error and inefficiencies.
Measurement inaccuracies in the Australian transport and logistics industry can severely affect companies’ profits; with the costs involved in the shipping and delivery of goods being entirely dependent on measurements.
While a consumer may not feel the pain of having to pay an extra for a package that has been incorrectly weighted and measured, the financial losses are felt on a much larger scale. Thousands of incorrect measurements like this however will cost distributors and carrier companies who depend on correct measurements to optimise their use of space, number of loads and in turn, reduce costs.
The transport and logistics industry is worth more than $150 billion to the Australian economy, but carrier companies lose hundreds of thousands of dollars in revenue due to inaccurate measurements of packages.
Technology to the revenue rescue
The National Measurement Institute (NMI) regulates measurement accuracy across varying industries in Australia in the hopes of ensuring businesses ‘get what they pay for’ – meaning no loss in revenue or cost. However despite their efforts, they have had to issue 2,388 organisations with non-compliance notices for measurement and labelling accuracy.
A flaw in the system always calls for a calculated solution, and in the world of evolving technology designed to improve productivity, accuracy and efficiency, there is a way to recover this lost revenue – or at least stop it from continuing to occur.
The cost of human error within postal and delivery companies is too great to be afforded in the economy that Australian businesses operate in. Thus, an automated system has been designed to aid revenue recovery, capture data for automated generation of transport documents and provide accurate measurements for load optimisation.
A SICK Solution
SICK’s Dimensioning, Weighing and Scanning systems (DWS VMS 420/520) automatically enable an accurate price to be charged, based on either the weight or the volume. This eradicates the need to rely on inaccurate customer-declared weights and dimensions to calculate charges from. The capture of correct weights and dimensions allow all parties involved to charge and be charged accordingly.
With the ability to reduce revenue loss by $250,000 within 12 months for clients handling thousands of packages per hour using a SICK DWS system, rapid revenue recovery can benefit all sizes of parcel and package carriers.
Measurement accuracy is vital to ensure an efficient production process and determine the true cost of a product’s value.
It’s estimated that, each year, over $400 billion worth of goods are sold on the basis of a measurement in Australia.
Measurement inaccuracies are worryingly commonplace in the Australian transport and logistics industry.
The transport and logistics industry is worth more than $150 billion to the Australian economy representing in excess of 14 per cent of Gross Domestic Product.
The costs involved in the shipping and delivery of goods is entirely dependent on measurements; inaccuracies can severely affect companies’ profits.
The Importance of a Measurement
Incorrect measurements may not make a huge difference on a case by case basis; but consider these inaccuracies when multiplied by the number of parcels distribution centres process in an hour, a month or a year.
For example, one of Australia Post’s large parcel sorting machines can process over 12,000 parcels every hour.
Recording the correct measurements of parcels is not only important in regards to billing and invoicing; it also determines whether the allocated parcels can fit on the delivery vehicle and how much this will cost the distributor.
The option of weight or size is important as road and air transport costs depend on the space occupied, by number of packages that can be carried as well as their weight.
Knowing the exact measurements allow carrier companies to optimise their loads and, in turn, reduce costs.
Measurement accuracy is regulated by The National Measurement Institute (NMI), Australia’s peak measurement organisation, which is responsible for maintaining the nation’s primary standards of measurement and for providing the legal and technical framework for the dissemination of those standards across varying industries.
For each and every transaction made, the NMI’s trade measurement is there to ensure ‘you get what you pay for’ – meaning no loss in revenue or cost.
The NMI enforces its standards with regular checks and fines across all trade industries; in the past 12 months, they have recorded more than 1,000 complaints, issued 2,388 organisations with non-compliance notices and completed more than 40,000 tests for measurement and labelling accuracy.
So how much do these inaccuracies cost?
According to Jean-Michel Maclou, intralogistics and transport sales manager at SICK, carrier companies lose hundreds of thousands in revenue due to inaccurate measurements of packages.
This doesn’t take into consideration the larger of these companies who churn through 1000s of packages per hour.
UPS’s air hub in Philadelphia, Pennsylvania, USA sees approximately 95,000 parcels and documents sorted every hour, day after day – when you consider these figures, it’s clear that the accumulative lost revenue can quickly become astronomical.
How can postal and delivery companies combat this flaw in their system?
SICK’s Dimensioning, Weighing and Scanning systems (DWS VMS 420/520) aid revenue recovery, capture data for automated generation of transport documents and provide accurate measurements for load optimisation.
The SICK DWS system automatically enable an accurate price to be charged, based on either the weight or the volume, whichever is greater.
Clients who purchase a weighing system generally reduce revenue loss by $250,000 within just 12 months, with some paying back in half the anticipated time – just through recovered revenue.
Norsk-European technical director Gary Bartoletti claimed that SICK’s DWS systems have played a key role in the company’s operations.
“Previously we had to rely on customer-declared weights and dimensions to calculate charges which, unfortunately, were not always accurate.,” he said.
“Since the installation of SICK’s DWS systems, we have been able to capture correct weights and dimensions, and charge accordingly.”
Rapid revenue recovery can benefit all sizes of parcel and package carriers, from the smaller operations to those handling many thousands per hour, making the DWS an essential purchase.
Image: Angela Wiley