1 | Logistics August 2007 www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
A colleague, when discussing the
recent SMART Conference, opined
that there is a need for a new
Supply Chain and Logistics (SCL)
paradigm. This lead me to consider the
most important lessons in today’s changing
Australian SCL environment. A very senior
industry colleague said to me at SMART “This
Supply Chain Management thing is taking off
isn’t it Steve.” In his presentation at SMART,
the CEO of Lion Nathan observed that Supply
Chain Management “is business”. The media
is rife with discussion on the strategies that
Wesfarmers will bring to Coles, in particular
with regard to changes in Supply Chain.
This is a strong endorsement of the SCLAA’s
strategies including our goals, vision, mission
statement and recent name and structure
changes. However we need to be self aware
as a profession. Perhaps the most important
lesson in SCL today is less about the SCL
strategies to be implemented, but more about
getting change management right so that SCL
does not become yesterday’s concept as a
result of failed implementation strategies.
You get out of any activity what you put into
it. For me, the opportunity to get away from
the office with time to think about issues and
the topics presented is invaluable. It occurred
to me that in my years of study and practice
of Supply Chain & Logistics Management I
have been presented with many, many ideas
and even more spins on those same ideas.
The fundamentals underpinning those ideas
always return to the simple level. Approached
with the right attitude, conferences are like
that.
I always get a great deal out of conferences
whether through networking, by picking up
one or two pearls of wisdom, being satisfied
that there was nothing new presented that
I would have missed had I not attended,
understanding what others are focused on or
being reminded of or re-learning, something I
had forgotten. It was this last point that I was
left with from this year’s SMART.
Running a modern business requires
management of many disciplines. Sales,
marketing, operations, human resources,
safety, corporate governance, communications:
the list is imposing even at the top level of the
hierarchy. It helps to have an approach for
dealing with apparent complexity. Complexity
is more than many simple relationships. The
pitfall of too many managers is that they
look first for the complex solution, when all
so often it is the simple approach that works
best. Alternately, they introduce the complex
solution into an unstable environment,
creating chaos. Aside from the ‘unfreeze-
change-refreeze’ paradigm and the importance
of communication in bringing your people
along with you, before introducing change,
ensure your organisation has the basics right.
Operate from a firm base.
I once resisted the insistence of a university
lecturer that, in business, leadership is
introducing change. If that is true, then
introducing change consistent with current
capabilities is a core skill for the effective
manager. A manager at any level must focus
on the now and the future. This is called
operations (the now) and development (the
future). Time must be allocated to each in
turn but in a coordinated way. I suggest that
understanding the importance of operating
from a firm base is a lesson that many
managers are re-learning. In Supply Chain
Management collaboration is a strategy that
first requires that a company’s functions and
systems are effective and stable (facilitating
trust and visibility).
I am confronted frequently by capable
managers who make the right decision not to
progress to SCL restructuring (outsourcing
for instance) due to a lack of confidence that
existing functions and systems provide a valid
internal comparative benchmark. In contrast,
I meet with potential clients who wish to
introduce a development e.g. barcoding as
a solution when such an initiative would
either increase the problems associated with
underperforming functions and systems or
potentially mask the real culprit. I have had to
reject work assisting businesses under those
circumstances. Creating change as an illusion
of progress is in nobody’s interests.
My point is this. SCL change is important
but re-learn the lessons of effective functional
performance that have been lost through
ever flatter organisational structures and
ever increasing complexity of managers
responsibilities in order to effectively
implement that change. Businesses operate
as a sub-system of a system called a Supply
Chain. Application of systems thinking
facilitates analysis of the contribution not only
of people, processes, technologies, facilities
etc in isolation but also of the impact of the
relationship between the attributes of those
components on system performance.
An approach that gets back to basics in
terms of understanding your people, processes,
facilities equipment issues and ensuring that
their performance is stable and capable of
handling new approaches and strategies is
just as important as understanding any new
SCL paradigm.
Managers manage complexity through
business structures that are usually
functionally driven. Develop your functional
people in a manner to drive functional
performance. Layer over the top of that systems
thinking and strategies that deliver flexible
organisations and then, and only then, will your
operation cope with the developmental SCL
changes that will determine your competitive
advantage into the future.
The best mechanism for ensuring your
peoples’ functional skills are up to the task –
Australia’s Association for Supply Chain and
Logistics Professionals and Practitioners.. Run
by Members for Members…the SCLAA. Speak
to your local SCLAA State Division Office
about activities and events and membership
benefits for your most important asset – your
people.
Lessons from SMARTImplementing the SCL Competitive Advantage
STEVE MACPHERSON National President SCLAA e [email protected]
August 2007 Logistics | 2www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
The Supply Chain & Logistics
Association of Australia (SCLAA) and
the Chartered Institute of Logistics
and Transport Australia (CILTA)
proudly partner to present the Australian
Supply Chain and Logistics Excellence Awards
2007 on Thursday the 22nd of November at the
Sofitel Hotel, Melbourne. Nominations are now
invited for all award categories. The partnership of the SCLAA and CILTA, the two pre-eminent associations representing professionals and practitioners working in, and in support of, the Supply Chain and Logistics industries, make these proud and historic Awards unambiguously the most prestigious and influential in the industry. The closing date for submissions for the 2007 Australian Supply Chain & Supply Chain Awards is close of business on Friday the 21st of September 2007. Nomination forms are available on www.sclaa.com.au and www.cilta.com.au or simply by emailing [email protected].
2007 Award Categories2007 Australia Young Transport and Logistics Professional Award The purpose of this award is to provide incentive for, and recognition of, achievement of individuals who are actively involved in day-to-day operations and development of a transport or Logistics organisation in Australia. The award is not limited to a particular discipline in transport or Logistics but may relate to areas including, but not limited to, engineering, planning, policy, Logistics, finance, administration or management. Candidates must be under 30 years of age as at 30th June in the year of nomination.Winner 2006: Rhiannon Russell from SKM (Western Australia)
2007 Environmental Excellence Award (H.A. Ritchie Trophy) For significant achievement in any area of environmental concern including traffic congestion, packaging or waste disposal, recycling, and energy consumption. Achievement in the specific application and in its wider applicability must be demonstrated thereby promoting environmental best practice.Winner 2006: Veolia Environmental Services
2007 Transport and Logistics Achiever of the Year Award (Mike Munns Trophy) The aim of this award is to encourage and acknowledge the outstanding achievement of an individual who is actively working in an organisation within and/or the transport and Logistics industries. The award is not limited to a particular discipline in transport or Logistics but may relate to areas including, but not limited to, engineering, planning, policy, Logistics, finance, administration or management.Winner 2006: Robert Harris from TNT Logistics
2007 Transport and Logistics Achievement of the Year Award ( S.E Pike Trophy) The purpose of this award is to acknowledge an outstanding, innovative contribution to a development in the transport and Logistics industries by an organisation or an individual. The nomination will clearly describe the nature of the achievement or proposal, the circumstances in which it was put into effect, the extent of the individual involvement, the scale of the application, the results achieved and the significance of the achievement.Winner 2006: Oakey State High School, in Queensland
2007 Storage and Handling of Materials Award (Comino Trophy) For significant achievements in the techniques and technology of materials storage and handling at any stage of the Supply Chain. Technology covers equipment and design techniques, including facilities design, and associated information and control systems. Improvements and/or innovation with particular regard to impact on organisational objectives and to contribution to the wider field of materials storage and handling must be demonstrated.Winner 2006: Repco Queensland Distribution Centre
2007 Information Management Award (Len Smith Trophy) For significant achievement in the use of communications, information management, technology and e-business in any aspect of Logistics and Supply Chain m\Management, with particular regard to the added value produced by the achievement.Winner 2006: Sunshine Technologies
2007 Supply Chain Management Award (Doug Beattie Trophy) For significant achievement in managing the integration of Supply Chains. This could be functional integration within an organisational Supply Chain, or more widely across Supply Chains involving several organisations that have formed trading partnerships or alliances. Collaboration and added value across the Supply Chain, achievements gained through outsourcing and the development of new business models could also be demonstrated.Winner 2006: Virgin Blue
2007 Training Education and Development Award (Peter Gilmour Trophy) For significant achievement in any aspect of training, education, or the development of people which is relevant to the Supply Chain and Logistics. This can cover formal education through a tertiary institution, in-company training, training provided by a registered training organisation or private training. Professional development can be demonstrated at any level.Winner 2006: Victorian Department of Innovation, Industry and Regional Development
2007 Manufacturing Logistics Award (John Thompson Trophy) For significant achievement in any aspect of Logistics associated with manufacturing, with particular regard to the effect on cost and efficiency of the total manufacturing process and the integrated Supply Chain. This may include the design or process re-engineering of Logistics flows in manufacturing facilities, integrating Supply Chains, plant layout, forecasting and scheduling production.Winner 2006: TNT Logistics (Australia) Pty Ltd and Mitsubishi Motors Australia Limited
Confirmed Sponsors
Call For NominationsAustralian Supply Chain & Logistics Excellence Awards 2007
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SCLAAwww.sclaa.com.au
SCLAA SMART Snapshots
DAVID DOHERTY National Director SCLAA e [email protected]
T he SMART conference and the SSCT
Show, held in Sydney as a part of
Supply Chain week at the end of
June proved to be a great success.
It was good to see long time stalwart of
the SCLAA, Roger Vale, at the Smart Supply
Chain Technology show presenting the
unique and innovative materials handling
equipment offered by MOBICON SYSTEMS. It
seems the machines are finding great interest
and resultant deals in a number of export
markets.
CEVA LOGISTICS brought a new dimension
to SMART with several outrageously attractive
young women provocatively attired as Snow
Bunnies. During the Conference these Snow
Bunnies provided neck and back massages
to volunteers from the crowd surrounding
the CEVA Stand. I was tempted, but renegged
as I feared I would not come through the
experience alive!
Jim Hendrickson from Sterling Commerce
(USA) really struck some nerves with his
presentation on Technology. Jim debunked
many of the myths associated with technology
implementation and included many references
to the Gartner 'Hype Cycle'.
This reality check by Jim comprised a
valuable and entertaining learning experience.
I am following up with Sterling Commerce to
see if we can get the Hendrickson presentation
for distribution to SCLAA Members.
Maxine McKew as Chairperson of plenary
and half plenary sessions got a good warm
up for her approaching federal election battle
with John Howard in the seat of Benelong. If
she creates an upset and indeed defeats the
PM it will undoubtedly be due to the excellent
warm up the Supply Chain and Logistics
profession gave her. Return favours will be
sought Maxine!
At the SMART Awards Dinner it was
gratifying to note the winners of the
Manufacturing Logistics Award were TNT
and Mitsubishi Motors. SCLAA Members will
recall that TNT and Mitsubishi Motors were
the joint winners of our Australian Supply
Chain and Logistics Awards 2006 presented
in Perth last November. We must have got it
right!
Jennifer Noonan, Marketing Manager
for Manhattan Associates, a Valued Official
Partner of the SCLAA, was also very busy at
the Smart Supply Chain Technology show
enthusing existing and prospective clients.
Pleasing to see an SCLAA Partner capturing
real and on-going interest in a competitive
market place. SCLAA Members are encouraged
to contact our Partners when an appropriate
business need arises.
Graham Gardiner and Jason Whittaker
from Supply Chain Review (SCR) were located
in the SCR Booth right opposite the coffee
service bar. This year SMART delegates could
order any style of coffee and have it made on
the spot. A great idea, but long queues and
big crowds almost buried Graham and Jason
at morning and afternoon conference breaks.
These guys showed terrific courage to keep the
SCR banner aloft during the coffee riots!
Another innovation this year at SMART was
the book display presented by the THE CO-OP
BOOKSHOP. Delegates swarmed around the
display with brisk sales ensuing. The level
of interest clearly indicated a real thirst for
knowledge in the profession.
The SCLAA operated two booths during
Supply Chain week. One was in the display
area adjacent to the Conference Rooms, and
the other by courtesy of Simon Cooper, a
great friend of the SCLAA, was downstairs
in the Smart Supply Chain Technology show
area. Both booths attracted many current and
prospective Members seeking information. We
are indebted to the people who volunteered
time to work in the booths. They included,
Fulvia Nelson, Bill Henman, Steve MacPherson,
Naomi Miller, Liam Stitt and Damian Cosgriff.
On the SCLAA Stand, one of our NSW
Members in Jose Evora did an outstanding
job. A very interesting thing about Jose is that
his skin is very dark in colour. However, when I
enquired about his country of birth he floored
me by saying it was Norway! Of course most
Norwegians are very light skinned so people
would never guess Jose indeed does come from
Norway. It is an interesting story that we must
feature in a future Newsletter. Incidentally,
Jose is a delightful and interesting person.
NATIONAL NEWS
At the SCLAA Board Meeting held on the 22nd of June the Board accepted the resignation of Mark Helding (Victoria) as a Director. Steve MacPherson (SCLAA Chairman) expressed gratitude to Mark for his valued contribution particularly during the difficult SCLAA start up process. On behalf of the Board he also wished Mark success in his other endeavours.
The Board also confirmed the appointment of John Turner (Victoria) as a Director.
Steve MacPherson then announced that in conformity with the Constitution he would be relinquishing the position of Chairman at the Annual General Meeting planned for September.
John Turner was then unanimously confirmed as Chairman elect.
The 2007 Australian Supply Chain and Logistics Awards are an important national event being presented in collaboration between the SCLAA and CILTA (Chartered Institute of Transport and Logistics). All Members are urged to participate in the Awards that will culminate in a gala dinner at the Sofitel Hotel in Melbourne on the 22nd of November 2007.
August 2007 Logistics | 4www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
Q: Why did you join the SCLAA? What benefits do you believe the SCLAA offers all their Members?
AM: I joined the SCLAA to form a national special
interest group for the cold chain industry and to
organise a committee to undertake projects within the
SCLAA.
The SCLAA have the main benefit of being a national
association and multi-model. The SCLAA are also very
supportive of developing a special interest group for the
cold chain with a sub-group for the food industry and a
subgroup for the life sciences industry.
DR: I joined the SCLAA for the great opportunity it
affords to Members to network with leading industry
professionals.
NJ: I joined the SCLAA to become a part of a group of
people with the same professional interests as mine and
to learn more about the wide world of the Supply Chain.
Gone are the days when you would warehouse product
and make deliveries and that is all that was involved.
Logistics is a complex industry and networking is
critical to success.
Q: How long have you been in the industry? What are your areas of expertise?
AM: I have specialised expertise in cold chain Logistics:
predominantly in the pharmaceutical industry in
Australia.
Prior to Global Cold Chain I was the Managing
Director for a large German company involved in
business and Supply Chain throughout Europe and
the Middle East. I also have tertiary qualifications
in Business Management and finance. I studied a
Post Trade qualification in refrigeration and electrical
engineering which gives me a strong technical
background to call upon. In more recent times, I have
re-structured companies in difficult situations and
turned them around by implementing efficient systems
and processes.
DR: I am fresh into the industry having completed
a Bachelor of Business in 2006 at the Queensland
University of Technology (QUT) graduating with
Distinction. I Majored in International Business and
Marketing. My particular study areas of interest
were analysing South East Asian markets and the
marketing psychology behind consumer/business
purchases and consumption patterns. I am also member
of the Australian Institute of Exporters and I hold
a Diploma of Export Management. However, I am
currently furthering my industry knowledge through
Queensland Purchasing’s 'Procurement Professional
Graduate Development Program'. Upon completion of
the graduate Program in late 2007 I will hold a level 3
Certification in Strategic Procurement and 12 months
worth of industry experience. My placement is at
Tarong Energy Corporation Ltd with Vince Aisthorpe,
the chairperson of the Queensland Supply Chain &
Logistics Conference, acting as my graduate mentor.
NJ: I have been involved in Logistics for over 25 years
now with the 3PL side of Logistics being my focus for
the last five. I am enjoying the ever-changing industry
and the variety of people I deal with on a daily basis.
Q: What is current job role and what are your responsibilities?
AM: I am the Managing Director of Global Cold Chain
Solutions Pty Ltd. My role consists of: Consulting and
liaising with senior decision makers in cold chain
Logistics, developing solutions for the transportation
and monitoring of temperature-sensitive products,
evaluating cold chain practices and providing
economical alternatives, validation of cold chains,
evaluating new technologies for the cold chain industry,
managing a project development team to design and
manufacture cold chain monitoring devices and cold
chain packaging.
DR: My current position as a Procurement Graduate
at Tarong Energy involves undertaking strategic
procurement activities such as: market/supplier analysis
and evaluation; contract management; organisation
wide procurement expenditure and risk analysis;
inventory management, purchasing, and; internal policy
review. I have also been given the opportunity at Tarong
Energy to engage the Supply Chain holistically. This has
involved taking a hands on role within Tarong Energy’s
warehouse following materials through receivables,
inventory, and redistribution, while also meeting and
maintaining relationships with various suppliers and
Third Party Logistic providers. This has allowed me to
gain a comprehensive understanding of the relevant
processes and potential challenges faced within Tarong
Energy’s Supply Chain.
NJ: As National Logistics Manager for Gromarket
Logistics my role is to provide advice and assistance to
my State Managers to ensure our clients warehousing
and distribution needs are met. I also assist our ‘Non-
Logistics background’ clients when they deal with the
relationships with their major customers.
SCLAA New Members
Andrew MeyersManaging DirectorGlobal Cold Chain [email protected]
Desmond RocheProcurement GraduateTarong Energy [email protected]
Nigel JessonNational Logistics ManagerGromarket [email protected]
The SCLAA would like to welcome these new members...
5 | Logistics August 2007 www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
STATE NAME COMPANYDavid Cassar
Anurag A Jain
Simone Treyvaud
Stephen S.R Lanham
Rajesh R Sehgal
Yngve AY Andresen
Shane Azzi
Kassaby Mohammed
Trevor Walker
Karl Heidenreich
Bruce Hope
Clifford Grove
Cassandra Lee
Christopher McCleary
Keith McLellan
Desmond Roche
Kieran Sondergeld
Peter Stevenson
CORPORATE:
Dept of Defence
SDS
Australian Tyer Traders
Pacific Brands
Swire Cold Storage
DKSH Australia Pty.Ltd
Price Waterhouse Coopers
Mars Petcare Aust
Transport Management Solutions
Boral Masonry & Roofing
Northline Freight Management
Corporate Logistics
SDS Logistics
Davidson Recruitment
Bundaberg Sugar Limited
Powerlink Queensland
Tarong Energy Corporation
Ideal Electrical
Enertrade
Joint Logistics Unit (SQ)
Department of Public Works
SCLAA New Members
VICTORIA
NEW SOUTH WALES
SOUTH AUSTRALIA
QUEENSLAND
The SCLAA would like to welcome the following new members...
August 2007 Logistics | 6www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
T he SMART Conference
was a great success
again this year with
approximately 900
delegates attending from many
geographic locations around the
Asia Pacific Basin. The Delegations
from America and India provided
very different perspectives about
how Supply Chain Management
is being implemented in their
regions.
It was interesting to talk with
an Asia-Pacific manager who is
hopeful of supplying software
systems to a major retailer in India.
This retailer is planning to change
the whole retail market in India
opening five mini supermarkets
each week and locating a store
every half a kilometre within the
major cities. The Company hopes
to employ 10,000 ex-patriots to
implement this new concept in
addition to 250,000 shop assistants.
I guess Woolworths and Coles are
small when compared with this
new Indian initiative.
The Key Note Speaker from
'Peak Oil' predicted that the world
is most likely to run out of oil
within the next 20 years as no new
major oil fields have been found
and demand continues to grow.
He pointed out that even using
bio-fuels and alternate energy
sources will not bridge the gap.
From the information he provided,
it appears that China has well
and truly covered its bases by
securing supplies out of Africa in
addition to the Middle East. They
are also predicted to have the same
number of motor vehicles on the
road within ten years as America
currently has which only serves to
underline the growing demand for
oil.
There were many other
interesting presentations and
perspectives about Supply Chain
improvement.The networking
opportunities proved valuable for
everyone and the SCLAA, as part
of the organising committee, has
labelled this event a great success.
Some sponsors have even registered
their interest for the 2009 SMART
Conference in Sydney.
Nationwide Event Wrap-ups
"The Supply Chain Technology Show held in association with the SMART Conference provided outstanding opportunities for real hands on learning across every element of Supply Chain, covering seamless flows from 'origin to use'. Professionals and practitioners alike enthusiastically embraced the unique style of the exhibition which created an easy going environment conducive to optimum use of time.Exhibitors took the opportunity to showcase innovative new and developing technologies. All in all a great show!"
David Doherty, National Executive Director
“The 2007 Smart Supply Chain Technology Show was an important event for the SCLAA and its Members. In conjunction with the SMART Conference, this was the largest opportunity to reach members of the Supply Chain and Logistics Industry in one location available this year. The SCLAA was very pleased with the response it received from exhibition attendees to our booth at the Smart Supply Chain Technology Show. Many potential new Members provided positive feedback on the activities of the Association and we look forward to meeting their needs well into the future.”
Steve MacPherson, SCLAA National President
“The level of interest shown from the Smart Supply Chain Technology Show attendees proves that taking the step to the SCLAA was the right move. The broader Supply Chain and Logistics focus now being provided by the SCLAA is being well accepted and shows that the future is strong for the association that has now been around in a number of forms over the last 40 years. Interestingly, the SCLAA focus on Members services, strong networking opportunities and a truly national presence proved to be the difference that sets the SCLAA apart from other associations. The number of membership applications and enquiries received during the show was encouraging for the future of this member driven association.”
Liam Stitt, SCLAA Queensland President
SSCT Show, SMART and Supply Chain Week
BILL HENMAN SCLAA NSW Presidente [email protected]
7 | Logistics August 2007 www.ferret.com.au/Logistics
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A Special General Meeting of the LAA
(WA) Inc, held at the Swan Brewery in
June resolved to wind up LAA (WA) Inc
voluntarily. This is the final step in
implementation of the Members’ resolution at last
years AGM to establish the SCLAA nationally.
An ‘efficient but effective’ meeting was attended
by a good number of Members. This was followed
by a tour of the Swan Brewery, a few ‘refreshments’
and a good opportunity for Members to network,
share challenges, offer support and generally enjoy
the experience.
WA SGM
A number of changes are occurring on the WA Committee. The SCLAA (WA Division) Committee would like to congratulate Jason Coglan and Nick Munyard on their contribution to the Committee. Both have new challenges work-wise and are taking a break from the committee. We welcome new Members Blair Pierson, Brian Lynn, Andrew Gadd, Jim Kelly and Rebecca Taylor. At the time of writing this article the appointment of a new Executive Manager is imminent. Watch out for new initiatives related to this.
T he 2007 Awards
Committee has been hard
at work. Brochures for
the 2007 SCLAA/CILTA
Ascot Awards will be out soon.
The SCLAA is pleased to
announce that the VET in Schools
Award, championed at last years
Ascot Awards for the first time,
has been included in the formal
suite of Ascot Awards. This is a
credit to Committee members Steve
Kitching, Silvio Ranieri, Kingsley
Waterhouse and Navinder Singh.
Your SCLAA is working hard to
promote the industry to potential
new employees for your business.
If you would like to know how you
can help or promote your business
to this sector, contact your President
or the office.
WA 2007 Awards
WA Committee
Western Australia Event Wrap-ups
South Australia Event Wrap-up
Tuesday July 3rd saw the first Logistics Lounge
held in SA. Although not a large gathering
our guest speaker, Phil Hope, Corporate
Supply Manager for Mitsubishi Australia
provided an overview of the vehicle manufacturing
industry sector and the market challenges it faces.
Mitsubishi have also broken new ground with
a complete overhaul of its Tonsley Assembly Plant
global inbound Supply Chain structure. This has seen
stock availability on the assembly line being 100% as
the norm, along with a reduced total Supply Chain
cost. We thank Phil for his informative and interesting
presentation.
Questions, discussion and light refreshments
followed giving all an opportunity to explore the
many questions and ideas raised. Thanks to all who
attended and we look forward to our next event.
SA's inaugural Logistics Lounge
August 2007 Logistics | 8www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
Association Sponsors As each LAA incorporated state-based
body, namely LAA Qld, LAA Victoria, LAA South
Australia and LAA Western Australia wind
up their state-based entities and transfer
their assets to the national organisation, the
SCLAA will be well placed to add additional
value to our current and potential sponsors.
To date, we have a number of state-based
sponsors who are keen to be more actively
involved with the nation-wide SCLAA.
Our website provides details of standard
sponsorship packages but Divisions are able
to negotiate personalised packages where
sponsors have particular needs or market
segments which they wish to target.
NSW Division Emerges
Conference Planned for 2008 Sydney will host a knowledge-based
conference in April 2008 in conjunction
with a well-known trade display exhibitor.
This decision was made by the SCLAA
National Executive and planning has already
commenced. The details are still emerging
and will be widely-communicated through
Trade Magazines and various industry web
sites. This Conference will focus on both
practitioners and professionals and will offer
‘something for everyone’.
Linking suppliers of equipment, technology
and training to an educational event provides
an excellent opportunity to combine theory
with practical. The two-day Conference will
include case studies, workshops, key note
addresses and government perspectives which
will impact on Supply Chain Management
over the next ten years and in particular
the massive growth in handling imported
product.
The SCLAA had a stand at the SMART
Conference which generated a good
deal of interest from the many
conference delegates. The most
frequently asked questions of those manning
the stand was “Why was there a split between
the SCLAA and LAA?” Everyone can justify why
a particular position was taken or a process
implemented. The SCLAA has tried on a number
of occasions to have a 'meeting of the minds'
and last year both organisations held formal
mediation meetings – unfortunately without
success.
In relation to this, a number of positives
emerged during the SMART Conference
where Directors and Board Members of both
Associations had informal discussions about
pathways to work together in a manner to benefit
the business community and membership.
Now that the NSW SCLAA Division is growing
in both membership numbers and corporate
sponsors, it is true to say that the SCLAA is
truly a national association which represents
those interested in Supply Chain Management
and Logistics. A number of events have been
planned for this year which should be both
informative and educational to attendees.
Sydney and Melbourne are both major
centres for Supply Chain Management and
form the base of the majority of the industry
decision makers. NSW Division is starting from
a very low membership base as the majority of
potential members are currently with LAA Ltd.
Persons who are currently financial Members
of LAA Ltd will be offered a full year’s free
membership to the SCLAA starting from 1 July
2007. This was agreed at the recent National
Executive Meeting and will be implemented
effective immediately.
BILL HENMAN SCLAA NSW Presidente [email protected]
The Victorian Branch of the SCLAA recently
hosted two Logistics Lounges on the topic of
transport and Logistics contracts. The speaker
was Naomi Miller, a solicitor in the Transport
and Trade team at DLA Phillips Fox - one of the largest
legal firms in Australasia and a member of DLA Piper
Group. Naomi specialises in commercial and litigation
matters in the transport and Logistics industry, and acts
for a variety of marine insurers, importers, exporters,
freight forwarders, customs agents and cargo owners.
Naomi has been involved in advising several large
Australian manufacturers in relation to tenders for
freight services, including providing probity advice in
relation to the tender process. Naomi also has experience
in drafting various forms of commercial and regulatory
documents, including:
Licences in relation to activities within ports.•
Standard terms and conditions of carriage.•
Agency agreements.•
Prior to joining DLA Phillips Fox, Naomi worked as a
Policy Officer for the Victorian Department of Justice. Her
work included projects such as 'Chain of Responsibility'
reforms in the road transport industry, drug driving
regulation and legislative reforms in relation to speed
enforcement.
Naomi's presentation focused on the key legal risks
that underpin the provision or procurement of transport
and Logistics services. Whether set out in consignments
notes, bills of lading or formal long-term agreements,
these risks must be addressed by both the supplier and
customer.
In an increasingly regulated and sophisticated global
industry, Naomi's presentation will aim to provide you
with some tips in how to simplify your arrangements
and ensure that key legal and operational risks are
addressed.
VIC Logistics Lounges
9 | Logistics August 2007 www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
Victorian Snapshots
Victorians At SMART Conference Committee Member and Phillips Fox Lawyer
Naomi Miller gave an excellent presentation on
legal pitfalls and best practices for Tendering
at the recent SMART Conference in Sydney. The
audience loved it. This was evidenced by the
queue of people seeking further consultation
after the session. Well done Naomi!
Academic Dr David Wilson was enthralled by
the presentations given by the academics and
practitioners from the Council of Supply Chain
Management Professionals (USA), and Professor
Peter Hines from the Lean Institute (UK).David
boasted that eventually he got the autographs
from his Supply Chain heroes!
Coming Up Another super Networking Night is coming
up on August 29. Good wine, good company,
and a chance to do some discreet networking,
blatant benchmarking, and learning! The last
Networking night proved to be a huge success
so you must lock the date in now in order to
avoid disappointment.
More advance notice on a unique event.
In early December the worlds best Supply
Chain and Logistics Christmas function will
be organised in association with a Lawn Bowls
evening.
Beginners, regular players, and observers
will all be welcome to give it a go bowling a go
in a relaxed and fun filled environment. Lock
this one in too! Naomi Miller and Elsie Hooi are
the architects of this groundbreaking event.
The Gala Dinner presentation of the 2007
Australian Supply Chain and Logistics Awards
will be held at the Sofitel Hotel in Melbourne
on the 22nd of November. We need your support
to make these Awards the best ever. John
Edhouse is Chair of the Awards Committee
that embraces our partners in the Chartered
Institute of Logistics and Transport. Go to the
web site for SCLAA, www.sclaa.com.au,to get
more details on nominations, sponsorship, or
bookings for the gala presentation dinner.
Membership Renewals If you have not yet renewed your SCLAA
Membership please take the time to do it
now. Your membership is very important. This
Association is “run by Members for Members”
and we need your commitment in order to deliver
real value to you, and to maintain ongoing
improvement in services for all Members.
We also ask every Member to contribute to
the growth of the SCLAA by signing up one new
Member, or to recommend a person who we sign
up as a Member. Discount incentives on your
own renewal will apply in regard to every new
Member you encourage to sign up. For more
information Email Fulvia Nelson at vic@sclaa.
com.au
Certification Any Member interested in pursuing
Certification via the newly instituted and
industry acknowledged Certified Practicing
Logistician, or Certified Transport Planner
programs should contact David Doherty at ceo@
sclaa.com.au.
Meet Elsie Hooi (Communications Portfolio SCLAA Victoria
Committee)
Elsie Hooi is a Lecturer in Transport,
Warehousing and Distribution Management
within the Supply Chain Degree stream at RMIT
University.
Elsie:
Came from Singapore to Melbourne seven •
years ago.
Lectures at RMIT in Victoria, and offshore in •
Singapore, Hong Kong and Shanghai.
Enjoys the diverse cultures and business •
environments when teaching offshore.
Strives to encourage students to develop •
creative and innovative solutions within
their particular local environments and
constraints.
Seeks to make a real contribution to •
development of people and communities.
Believes Governments must focus on, and •
boost investment in infrastructure and
intermodalism around the world.
Is frustrated by lack of progress in improving •
and nurturing communities.
Joined the SCLAA to gain access to •
professional networks and networking in a
learning environment.
Recommends that students and young •
people in the industry join the SCLAA to
get unfettered access to professionals and
practitioners for development purposes and
to start building learning networks.
Will now be coordinating the Victorian •
Newsletter and seeks ongoing input from all
Members. Contact [email protected]
Salary Survey Report Copies of the excellent 2007 Supply Chain
and Logistics Salary Survey Report are now
available to all Members. The Report is
published by Logistics Recruitment Solutions
and is made available as a Member Service
through our partnership with LRS.
Request a copy by email from ceo@sclaa.
com.au
August 2007 Logistics | 10www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
L iam Stitt, Queensland President of the
SCLAA will be providing a series of
articles in the next few issues to start
debate about ‘What is Benchmarking?’.
This is the first in his series of articles.
The role of Benchmarking in organisational transformation
Introduction: Most “companies do not know what they
do not know”. They are inwardly focussed and
typically once organisational performance
drops a reactive change program has to be
implemented so that performance is returned
to acceptable levels. This change program, in
the initial phases will not take the organisation
to any real heights of innovation, continuous
improvement or learning organisation status.
Simply it will only correct the current round of
problems and initially bring performance back
to acceptable levels.
For companies that are led by dynamic and
forward thinking managers that have the desire
to move the organisation forward into the
innovation and learning sphere, how do they
know which direction to take?
To answer this question, the organisation
will need to undergo a form of assessment
and measurement, known as transformational
benchmarking to first:
Understand the current state.•
Scan the market for leaders in the respective •
areas.
Identify what needs to be changed.•
Develop an implementation plan providing •
innovation, improvement and learning as the
platform for change.
Benchmarking can be used in a number of ways
including:
Measurement and comparison of hard •
statistical indicators (content).
Mapping and comparison of system and •
process (process).
Auditing and measurement of capabilities, •
including skills, experience and knowledge
(culture, social).
And be deployed throughout an organisation •
at all levels, addressing both internal and
external elements.
There are numerous organisational
transformational management theories that
exist, including but not limited to:
TQM and continuous improvement.•
Balance Scorecard.•
Lean manufacturing, Logistics and •
construction.
Theory of constraints.•
ISO 2000.•
Six Sigma.•
Cultural audits and climate surveys.•
Teams and individual development •
programs.
Strategic direction setting.•
Customer centric initiatives.•
Specific corporate programs.•
To cover all of the above transformational
management theories in one piece of work
would more likely resemble a PhD project, so
the focus of this study is to examine the Supply
Chain & Logistics related industries to:
Identify and document current benchmarking
approaches that deal with both internal
and external elements in terms of ‘what is
benchmarking’ by identifying process, content
and performance type benchmarking techniques,
identify what type of companies have used these
techniques and examine the results gained.
Compare and document Supply Chain
organisational benchmarking techniques that
currently exist, and attempt to discover the
origins of each technique and how it came
into being, bring each technique identified
back to a framework level and understand the
philosophy underpinning each technique and
then compare the differences of each technique
at a framework / philosophical level and
examine the differences and discuss why these
difference may exist.
Identify the effectiveness and relevance
of current approaches and discuss why such
benchmarking programs either succeed or fail,
discuss the effectiveness of each technique
and discuss why each may have succeeded
or failed and then seek to establish if any of
these techniques will lead to organisational
transformation and then identify the key
elements of transformational benchmarking.
Identify and document current benchmarking approaches:
What is benchmarking? Benchmarking reportedly has been around
since the time of the fourth century BC in China,
but gained its rightful place in modern history
when the Japanese after World War 2 worked
closely with Dr Edward Deming, an American
process improvement expert and the founder
of Total Quality Management, to study global
trends and develop their own methodology to
quality improvement. This movement was the
first major engagement of modern benchmarking
philosophies and has positioned the Japanese
as leaders in this field.
TQM as described by Deming involves a
new management paradigm of continually
improving performance and processes by
inviting the involvement of all employees
to review processes through the use of data
and facts and through the use of individual
creativity to better serve the customer. TQM
ensures that you examine the process to identify
how to produce better outcomes, therefore
understanding the content of the process and
using performance measurement to manage the
overall improvements and gains resulting in
transformation.
Braun and Lansford have developed a website
devoted to benchmarking and have researched
much of their work based on the following book
HIGH PERFORMANCE BENCHMARKING: 20
STEPS TO SUCCESS BY H. JAMES HARRINGTON
AND JAMES S. HARRINGTON. Harrington has
a wealth of experience with leading global
consulting firm Ernst & Young and utilised this
data to support the findings in his research
contained in this book.
LIAM STITT Queensland President SCLAA e [email protected]
What is Benchmarking?
11 | Logistics August 2007 www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
So what in essence is benchmarking? The
benchmarking exchange website provides
the following three definitions of what is
benchmarking.
Benchmarking is a tool to help you improve
your business processes. Any business process
can be benchmarked.
"Benchmarking is the process of identifying, understanding, and adapting outstanding practices from organisations anywhere in the world to help your organisation improve its performance."
"Benchmarking is a highly respected practice
in the business world. It is an activity that
looks outward to find best practice and high
performance and then measures actual business
operations against those goals."
To summarise: benchmarking is establishing
a process to follow so that through measurement
and comparison a pathway forward for
improvement can be implemented.
How then can benchmarking be used to
provide guidance on both process and content
performance improvement?
Harrington and Harrington in their book on
high performance benchmarking have identified
five types of benchmarking being:
Internal Benchmarking, the first step 1.
in measuring your own organizations
performance.
External competitive benchmarking, examine 2.
closely competitors either with or without
their knowledge.
External industry (compatible) benchmarking, 3.
working with external partners in similar
industries that are not direct competitors.
External generic (trans-industry) 4.
benchmarking, working with external
partners in dissimilar industries.
Combined internal and external 5.
benchmarking, which is a combination of
the above four methods.
Which can cover your own, your competitors
and even non-competitors products, services
and processes. The key point is that services,
products and processes can be benchmarked,
not just products. In fact, the Japanese in their
early work in benchmarking identified that the
products are best left alone, and that processes
must be the focus on any benchmarking
activity. Japanese industries also realised
that not only production processes can be
benchmarked but also innovation processes
can also be benchmarked. Trott 1998 p.20 has
identified that innovation can be a process,
something which I believe is fundamental to
transformational benchmarking.
Of equal importance is the fact that the main
thrust in actually delivering transformation is
the external focus. This external focus increases
awareness and understanding as to market
developments and if monitored pro-actively
can sometimes lead to totally new business
developments ahead of the competition.
From the five types of benchmarking
mentioned above, it is the external focus
attributes that will actually identify where
the gaps are in the internal performance, and
then hopefully provide the impetus to make the
required changes.
It should be noted though that there is no
guarantee of success in making transformational
change by conducting benchmarking as the
translation and transformation elements are
not specifically covered by benchmarking itself
other than to provide a level of focus on the
people aspects of the process and look to enable
people to be involved in the benchmarking
process, and hopefully through that process
provide the opportunity for change.
Harrington and Harrington in their book
identified that benchmarking is actually a
twenty step process involving the following:
i. Identify what to benchmark.
ii. Obtain top management support.
iii. Develop the measurement plan.
iv. Develop the data collection plan.
v. Review the plans with location experts.
vi. Characterise the benchmark item.
vii. Collect and analyse internal published
information.
viii. Select potential internal benchmark sites
ix. Collect internal original research
information.
x. Conduct internal interviews and surveys.
xi. Form an internal committee.
xii. Conduct internal site visits.
xiii. Collect external published information.
xiv. Collect external original research
information.
xv. Identify corrective actions.
xvi. Develop an implementation plan.
xvii. Gain top management approval of the
future state solution.
xviii. Implement the future state solution and
measure its impact.
xix. Maintain the benchmarking data base.
xx. Implement continuous performance
improvement.
By categorising these twenty steps into
process, content and performance elements that
may lead to a transformation we find that:
Two steps relate to content and process
benchmarking which covers the outcomes such
as service and products and the associated
business processes of how these services and
products are achieved.
Eight steps relate to content benchmarking,
focussing on the hard data and research related
material to provide insights into performance.
Ten steps relate to the transformational
elements of people, corrective actions and
implementation of the new process.
This analysis provided some interesting
observations such as:
There is a strong focus on transformational •
elements.
There is a strong focus on content and •
performance measures.
There is not a strong focus on process •
related benchmarking.
Benchmarking Partnerships, a leading
Australian benchmarking group have also
established a framework for benchmarking
and we will also examine that to identify the
core characteristics and philosophies of this
framework.
This article will be continued next issue...
What is Benchmarking? cont...
Don't miss our wrap-up from the 2007 Queensland Supply Chain & Logistics Conference in the next issue.
You are invited to attend the AIP/SCLAA Annual Charity Golf Day which will be held on Friday 28th September at North Lakes Golf Course. To find out more simply email [email protected]
August 2007 Logistics | 12www.ferret.com.au/Logistics
SCLAAwww.sclaa.com.au
SCLAA VIC 2007 events
SCLAA QLD 2007 events
SCLAA WA 2007 events
Nationwide Events
15th
22nd 19th
28th
3rd
17th
26th
7th
23rd 4th
28th
2nd
17th
Site Visit - Goodman Fielder Murarrie
Site Visit - Australia Post
Site Visit – Smith’s Chips
Golf Day North Lakes
Best practice Purchasing & Inventory
Site Visit - Aperio Plastics
Logistics Lounge
Logistics Lounge
Annual General Meeting
Logistics Lounge
Golf Day at The Vines
Logistics Lounge
Technical Forum
2x Logistics Lounges Bells Brewery & Wheelers Hill Hotel
Knowledge Development Breakfast meeting
Site Visit
Member Networking Evenings
August
August
September
September
October
October
October
August
August
September
September
October
October
August
August
Wednesday
Wednesday
Wednesday
Friday
Wednesday
Wednesday
Friday
Tuesday
Thursday
Tuesday
Thursday
Tuesday
Wednesday
DAY DATE MONTH EVENT
QUEENSLAND
President: Liam Stitt
Secretariat: Steve Ellis
Suite 154236 HyperdomeLoganholmeQLD 4129
( 07 3343 3710( 1300 364 1606 07 3829 9730 [email protected]
VICTORIA
President: John Edhouse
Secretariat: Fulvia Nelson
Locked Bag 8000Kew MDCVIC 3101
( 03 9249 9621( 1300 364 1606 03 9249 9656 [email protected]
SOUTH AUSTRALIA
President: Mark Ingham
Secretariat: Tim McGlip
PO Box 838Kent TownSA 5071
( 1300 364 160 [email protected]
WESTERN AUSTRALIA
President: Steve MacPherson
Secretariat: Leith Finnie & Roger Finnie
Level 1220 St Georges TerracePerth WA 6000
( 08 9226 3451( 1300 364 1606 08 9321 9393 [email protected]
NEW SOUTH WALES
President: Bill Henman
PO Box 3271 Parramatta NSW 2124
( 02 8833 1404 ( 1300 364 160 6 02 8836 6370 [email protected]
NATIONAL
National Executive Director: David Doherty
Secretary: Fulvia Nelson
Locked Bag 8000Kew MDC VIC 3101
( 03 9249 9621( 1300 364 1606 03 9249 9656 [email protected]
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