Supply Chain Outlook - issue 1

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DHL EXPRESS

The undisputed global leader in international express shipping

PHILIPPINE AIRLINES

With a proud heritage, Philippine Airlines continues to forge a path of innovation and customer-centric service with Captain Stanley Ng at the helm; the President and COO discusses plans, pilots, and progress

DELTA CARGO

A vast and reliable global cargo network

WEERTS GROUP

Optimising efficiency with logistical flow

Trendsetters in end-to-end package delivery solutions, we unwrap what makes UPS Canada stand out with President, Stephanie Dexter

DIGISTICS / HEAVY VEHICLE INDUSTRY AUSTRALIA
ISSUE 1

Africa Outlook, APAC Outlook, EME Outlook, North America Outlook, Mining Outlook, Healthcare Outlook, Manufacturing Outlook, and Supply Chain Outlook are digital publications aimed at boardroom and hands-on decisionmakers, reaching an audience of more than 800,000 people around the world. With original and exclusive content compiled by our experienced editorial team, we look to promote the latest in engaging news, industry trends and success stories from across the globe.

Your company can join the leading industry heavyweights enjoying the free exposure we provide across our platforms with a free marketing brochure, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and to help you grow your business. Visit www.outlookpublishing.com/work-with-us for details on how your company can feature for free in one of our upcoming editions.

Tell us your story, and we’ll tell the world www.outlookpublishing.com/get-involved DEICORP Experts in residential, commercial, and retail property development RG GOLD Kazakh innovation, exploration, and excavation The envy of industry around the world, Australia’s high-productivity heavy vehicles are ready to undertake any and every task imaginable HEAVY VEHICLE INDUSTRY AUSTRALIA Darren Webb CEO of Evolution Data Centres, tells us about the company’s success in building, owning, and operating hyperscale infrastructure PHILIPPINE AIRLINES KROMBERG & SCHUBERT PIZZA PILGRIMS Bringing the distinct flavours of Naples to SAMKAUP for all Charting the marque’s journey across a region of growing importance as centre of luxury appreciation ROLLS-ROYCE MOTOR CARS Tesmec Group stands out as leader committed to providing innovative excavation solutions. Flavio Villa Technical Director of the Trenching and Surface Mining Division, tells us more www.emeoutlookmag.com Issue 58 EAVOR TECHNOLOGIES The world’s first scalable dispatchable energy ENTERTAINMENT GROUP Game-changing As trusted trendsetters in end-to-end package delivery solutions, we unwrap what makes UPS Canada stand out in a competitive market with its President, Stephanie Dexter UPS CANADA Gavin Donley Head of Marketing at Brain Corp, talks about how his company is empowering organizations to automate and infuse robotic artificial intelligence into their core operations www.northamericaoutlookmag.com RADY CHILDREN’S HOSPITAL AFRICAN CLEAN ENERGY DEVELOPMENTS RAUBEX ROADS AND EARTHWORKS Driving the acceleration of the South African construction industry, we speak to the Managing Directors of the four pillars that have cemented the division as the frontrunner in road construction for nearly 50 years Adama Soro President of the Burkina Faso Chamber of Mines, unpacks the challenges facing the Burkinabe mining industry as a key driver of the country’s socioeconomic development KOMATSU people, business, and planet thrive together IXAFRICA Facilitating the digital infrastructure www.africaoutlookmag.com Ngaire Tranter, General Manager at BUMA Australia, takes us through her vision to build a modern mining and rehabilitation company driving growth, sustainability, and prosperity BCI MINERALS Delivering multigenerational KMCMINING Growth and an evolving industry The latest updates from De Beers on the underground expansion of South Africa’s leading diamond mine VENETIA UNDERGROUND PROJECT PIMSGROUP resource potential www.mining-outlook.com ARIS MINING VILLAGE NATIONAL GROUP Dr Ahmed Hersi MD, MBA CEO of King Saud University Medical City, speaks about the hospital’s aim to advance its medical practices Advanced Dermatology and Cosmetic Surgery Utilising a relationshipbased care model between patient and clinician to deliver premier healthcare MATILDA INTERNATIONAL HOSPITAL APOLLOMD ST. ANTONIUS HOSPITAL Providing innovative and person-centred care for the Netherlands NOVACINA Facilitating Australian manufacturing REVOLUTIONARY INNOVATION THE ROAD TO FORMEX INDUSTRIES World-class manufacturing capability THE DRAKE GROUP has emerged as a significant force within Australia’s transport, logistics, and heavy haulage industry, providing high-quality and wide-ranging products and services KONGSBERG DEFENCE AUSTRALIA The premier supplier of defence products and systems César Habib Regional Director for Rolls-Royce Motor Cars Middle East and Africa, discusses the growth of its bespoke projects and private office network www.mfg-outlook.com KROMBERG & SCHUBERT / BAMBURI CEMENT PLC PHILIPPINE AIRLINES With a proud heritage, Philippine Airlines continues to forge a path of innovation and customer-centric service with Captain Stanley Ng at the helm; the President and COO discusses plans, pilots, and progress WEERTS GROUP Optimising efficiency with logistical flow DELTA CARGO global cargo network DHL EXPRESS express shipping Trendsetters in end-to-end package delivery solutions, we unwrap what makes UPS Canada stand out with President, Stephanie Dexter DIGISTICS / HEAVY VEHICLE INDUSTRY AUSTRALIA www.supplychain-outlook.com ISSUE 1

Regional Director: Joshua Mann joshua.mann@outlookpublishing.com

HEADS OF PROJECTS

Callam Waller callam.waller@outlookpublishing.com

Deane Anderton deane.anderton@outlookpublishing.com

Eddie Clinton eddie.clinton@outlookpublishing.com

Josh Rayfield josh.hyland@outlookpublishing.com

Ryan Gray ryan.gray@outlookpublishing.com

BUSINESS DEVELOPMENT DIRECTOR

Thomas Arnold thomas.arnold@outlookpublishing.com

SALES AND PARTNERSHIPS MANAGER

Donovan Smith donovan.smith@outlookpublishing.com

PROJECT MANAGERS

Cameron Lawrence cameron.lawrence@outlookpublishing.com

Jordan Levey jordan.levey@outlookpublishing.com

Kierron Rose kierron.rose@outlookpublishing.com

Kyle Livingstone kyle.livingstone@outlookpublishing.com

Liam Pye liam.pye@outlookpublishing.com

Nicholas Kernan nicholas.kernan@outlookpublishing.com

Poppi Burke

poppi.burke@outlookpublishing.com

Taylor Green taylor.green@outlookpublishing.com

ADMINISTRATION

Finance Director: Suzanne Welsh

suzanne.welsh@outlookpublishing.com

Finance Assistant: Suzie Kittle

suzie.kittle@outlookpublishing.com

Finance Assistant: Victoria McAllister victoria.mcallister@outlookpublishing.com

KEEPING THE WORLD MOVING

It is my pleasure to introduce you to our inaugural issue of Supply Chain Outlook – the new multi-channel brand launched by Outlook Publishing, bringing you the very latest developments from the supply chain industry. A variety of players make up the supply chain, ranging from local raw materials suppliers to large, transnational corporations. Each plays a crucial role in the creation and distribution of products and services that fuel everyday life, from the food we eat to the clothes we wear and much more.

Flying high on the front cover of our very first edition is Philippine Airlines, who takes pride in supporting the global economy by providing air cargo and charter services, along with scheduled non-stop flights to numerous destinations, both within the archipelago and around the world.

“We are known for our warm and gracious service anchored in ‘Buong Pusong Alaga’, meaning wholehearted care, which embodies Filipino hospitality at its best,” says Captain Stanley Ng, President and COO.

Just as Philippine Airlines is easily identifiable by its two red and blue sail triangles with an eight-rayed yellow sunburst, UPS has become a familiar sight on streets across the world with its iconic brown trucks.

The planet’s largest package delivery company made its first international expansion into Canada in 1975, where it is now an integrated provider of air and ground pick-up and delivery services throughout the country.

Led by Stephanie Dexter, its first female President, UPS Canada offers a wide range of domestic and global shipping and logistics services.

“Whether it is a local delivery or an international shipment, we have services that cater to businesses of all sizes across every industry,” Dexter informs us.

Delta Cargo likewise reaches hundreds of destinations and carries thousands of shipments a day, having worked hard to build a reputation for world-class handling, efficient operations, and speedy processing, regardless of the type of cargo.

“Cargo is an important piece of Delta’s long-term revenue diversification strategy, and the company is focused on investing and growing in this space,” comments Rob Walpole, Vice President of Delta Cargo.

We hope that you enjoy the first of many issues to come, which also includes corporate stories from DHL Express, Darwin Port, Digistics, and more.

EDITORIAL Head of Editorial: Jack Salter jack.salter@outlookpublishing.com Senior Editor: Lucy Pilgrim lucy.pilgrim@outlookpublishing.com Editor: Ed Budds ed.budds@outlookpublishing.com Editor: Lily Sawyer lily.sawyer@outlookpublishing.com Junior Editor: Rachel Carr rachel.carr@outlookpublishing.com Junior Editor: Lauren Kania lauren.kania@outlookpublishing.com PRODUCTION Art Director: Stephen Giles steve.giles@outlookpublishing.com Senior Designer: Devon Collins devon.collins@outlookpublishing.com Designer: Louisa Martin louisa.martin@outlookpublishing.com Production Manager: Alex James alex.james@outlookpublishing.com Digital Marketing Director: Fox Tucker fox.tucker@outlookpublishing.com Web Editor: Oliver Shrouder oliver.shrouder@outlookpublishing.com Social Media Executive: Jake Crickmore jake.crickmore@outlookpublishing.com BUSINESS CEO: Ben Weaver ben.weaver@outlookpublishing.com Managing Director: James Mitchell james.mitchell@outlookpublishing.com Chief Commercial Officer: Nick Norris nick.norris@outlookpublishing.com
CONTACT Supply Chain Outlook Norvic House, 29-33 Chapelfield Road Norwich, NR2 1RP, United Kingdom Sales: +44 (0) 1603 363 631 Editorial: +44 (0) 1603 363 655 SUBSCRIPTIONS Tel: +44 (0) 1603 363 655 jack.salter@outlookpublishing.com www.supplychain-outlook.com Join us on Linkedin: linkedin.com/company/supplychainoutlook/ Follow us on X: twitter.com/outlookpublish
Supply Chain Outlook Issue 1 | 3 WELCOME FROM THE EDITOR
14 10 20 REGULARS 6 NEWS Around the supply chain sector in seven stories 8 EXPERT EYE Integrating social value throughout the supply chain BUSINESS INSIGHTS 10 Time-Definite Shipments The undisputed global leader in international express shipping 14 Evolutions in E-Commerce A new multi-channel solution for the Benelux TOPICAL FOCUS 20 A Complete Guide to Music Festival Logistics Key planning points for an unforgettable music experience INDUSTRY SPOTLIGHT 26 Heavy Vehicle Industry Australia Ingenuity in design, engineering, and manufacturing 26 CONTENTS 4 | Supply Chain Outlook Issue 1

FEATURES

70 SHOWCASING LEADING COMPANIES

Tell us your story and we’ll tell the world

ASIA PACIFIC

72 Philippine Airlines Pioneers of the Skies

Exploring an aviation trailblazer

86 Darwin Port Sailing to Success Coastal cargo advancing Australian trade

102 Alexander Group

NORTH AMERICA

262 MHI RJ Aviation Group

Innovation in Aviation Moving the world forward

270 Helijet International

Enabling Evolution

Facilitating the future of aviation

278 J.D. Irving, Limited

Spearheading Logistical Synergy Service, quality, and innovation since 1882

284 Halifax Transit

Transforming Transit

Meeting the demands of a net zero future and increasing ridership

AFRICA

290 Digistics

Delivering Supply Chain Success

Resilient logistics and distribution operations

EUROPE & MIDDLE EAST

306 Weerts Group

Seamless, Streamlined, and Sustainable Success

Optimising efficiency with logistical flow

A Family Affair Transporting hazardous and high-value goods across New Zealand
316 Momentum Logistics First-Class Third-Party Provider Offering a complete suite of customised supply chain management solutions
to
Elite European transport expertise
324 Kreiss Driven
be Great
Group
Down Under – It’s What We Do Best Making waves in the maritime industry
Ports North Regional Development, National Excellence Developing and managing ports across Northern Australia
AVega Bros Integrated Shipping Corporation Brotherly Cargo Brokerage Catering for the logistical needs of the flourishing Philippine market
Kerry Logistics Oceania Pty Ltd Global Supply Chain Solutions Providing Oceania a gateway to the rest of the world
112 Pacific Tug
Tugging
120
126
132
UPS Canada The Ultimate Journey A peek inside Canada’s premier package company
Delta Cargo Moving the World
vast and reliable global cargo network
Saltchuk Marine Porthole to the World Tugboats rule the waves
America’s Service Line An Elite Food Delivery Fleet Dispatching excellence to the US food transportation industry 228 Storage Solutions Simple, Smart, Strategic Solutions for every square foot 284 324 142 228 102 238 Lanter Delivery Systems Delivering Excellence Night and Day Dedicated quality and shared value 248 Hutchison Ports PPC Facilitating the Future of Freight Optimising opportunities on the Panama Canal
BCI Worldwide Realizing Worldwide Eminence Complete management solutions Supply Chain Outlook Issue 1 | 5 SUPPLY CHAIN OUTLOOK CONTENTS
142
174
A
196
216
256

Around the supply chain sector in seven stories…

Supply Chains Buckle After Baltimore Bridge Disaster

LAST MONTH, a shipping vessel on its way to Colombo, Sri Lanka crashed into the Francis Scott Key Bridge in Baltimore, causing it to collapse catastrophically.

The movement of ships within the Port of Baltimore has since been suspended to allow authorities to search the river for casualties.

Whilst the bridge collapse has directly impacted the lives and livelihoods of local people, it has also caused a strain on the flow of goods for wider industry supply chains, including freight and rail, construction, manufacturing, logistics, and automotive, to name a few, which have witnessed extended disruption.

In many cases, industry experts have advised shippers to review their contracts and obligations, and consider alternative port assessments.

SECTOR

When the Chips are Down

AS TAIWAN continues to deal with the aftermath of the 7.4-magnitude earthquake that hit the country’s east coast on Wednesday 3rd April, the chip industry is assessing how the disaster might impact the global semiconductor supply chain.

Taiwan Semiconductor Manufacturing Company (TSMC)

is the main chip contractor for companies such as Apple and Nvidia. As a result of the earthquake, TSMC

SECTOR

Nike to Use Biofuel for Cargo Shipping

GLOBAL SPORTSWEAR retailer, Nike, is planning to use eco-friendly biofuel in 36 percent of its Frenchbased operations.

In an arrangement with French shipping and logistics company CMA CGM, Nike will ship maritime cargo using biofuel, which is hoped will reduce its overall carbon dioxide (CO2) emissions by 25,000 tonnes.

As Nike’s supply chain is currently responsible for 90 percent of its carbon footprint, the company has historically implemented a range of initiatives to shrink this figure. For example, it has collaborated with materials suppliers to utilise renewable energy in manufacturing.

CMA CGM has also offered Nike other low-carbon logistics solutions, such as liquefied natural gas (LNG) and biomethane, to further lower the company’s emissions.

was forced to pause production at some of its plants, placing potential pressure on chip and semiconductor supply chains.

However, TSMC noted that its overall tool recovery efforts had reached 70 percent just hours after the earthquake, and that no critical equipment, including its extreme ultraviolet (EUV) lithography tools, was damaged, appeasing supply chain leaders.

6 | Supply Chain Outlook Issue 1
NEWS

Amazon Alleviates Low Inventory Fee

SECTOR HAVING RECENTLY introduced increases to its Fulfilment by Amazon (FBA) fee, which generally contributes to covering the company’s picking, packing, and shipping costs, Amazon will credit sellers using its updated FBA service this April.

The new FBA fee applies to standard-sized products with less than 28 days of inventory relative to historical demand. By applying fees to products that meet this threshold, Amazon hopes to reduce overall

Big Lots Expands in China and Vietnam

IN A move to create a more robust platform for overseas procurement whilst enabling significant operational cost savings, US retailer Big Lots has opened two new buying offices in Asia.

The new locations have been strategically chosen due to their proximity to significant manufacturing facilities and vendor partners.

costs to the end user and improve fulfilment speeds.

As the new charge has come rapidly into effect this April, Amazon plans to alleviate the fee for sellers whose products meet the criteria between 1st and 30th April, as a gesture of goodwill.

SECTOR

Situated in Ho Chi Minh City, Vietnam, and Shanghai, China, the company hopes the new offices will enhance its ability to competitively source products, including close-out deals and extreme bargains.

Big Lots’ international expansion intends to bring the company’s third-party sourcing team in-house by allowing it to directly obtain new contracts without intermediaries. This, in turn, will help the retailer regain its characteristic ‘bargain heritage’.

UPS Accelerates Automation

SECTOR UPS, THE global shipping and supply chain management giant, has announced plans to consolidate many of its US locations as part of its Network of the Future initiative, which aims save the company USD$3 billion by 2028, largely by reducing its labour needs.

As such, UPS will close around 200 US facilities, whilst increasing volume within its growing fleet of automated packaging hubs.

Additionally, the company is closing 40 of its sorting facilities this year and seeking to automate other aspects of its operations, such as dispatch services for package cars.

It is thought that facility consolidation will lower UPS’ customer service costs, whilst significantly improving its volumeper-resource ratio.

SECTOR

Nestlé to Decarbonise Cocoa Supply Chains

ANGLO-SWISS FOOD and beverage manufacturer, Nestlé, recently revealed two projects aimed at reducing carbon emissions within its cocoa supply chains. The announcement contributes to the company’s overall pledge to reach carbon net zero by 2050.

Nestlé reported it would develop the projects alongside suppliers Cargill and Export Trading Group (ETG) over the course of the following five years.

Through the projects, Nestlé is seeking to address the impacts of climate change on the cocoa industry by promoting agroforestry and regenerative agriculture, and subsidising the reforestation of land around cocoa farming communities.

Supply Chain Outlook Issue 1 | 7

Beyond ESG: Embedding Social Value

Integrating social value throughout the supply chain should be standard practice for any responsible organisation. Guy Battle, CEO of Social Value Portal and co-Chair of the Sustainable Procurement Pledge, describes the evolution of social value and what a successful environmental social governance strategy looks like

Corporate social responsibility (CSR) is under closer scrutiny than ever before, so it makes sense to ensure that organisations, and the businesses they procure from, are managing risks as well as thinking about moving beyond environmental, social, and governance (ESG) to social value creation.

Social value is the term used to describe the value an organisation creates for individuals, communities, and society as a whole and has become standard practice for the majority of businesses in the UK.

Examples of social value initiatives include designating staff time for volunteering, committing to sustainable procurement practices, offering apprenticeships and training programmes, buying and employing locally, and reducing carbon emissions.

On a global level, the UN’s Sustainable Development Goals (SDGs) provide a good proxy for social value.

In practice, the meaning of social value is likely to change from one job or project to the next, as different

communities will have different needs. For example, seeking suppliers that can provide training for local people makes sense in areas where unemployment is high.

UNLOCKING SUPPLY CHAIN VALUE

From the Public Services (Social Value) Act in 2012 to the new Procurement Act 2023, organisations across the public and private sectors have been gaining a wider understanding of the many and far-reaching benefits to be had from generating social value throughout the supply chain.

This is having a ripple effect on both a global and local level. Internationally, we are already starting to see countries such as the Republic of Ireland, Canada, and Australia moving towards embedding social value into procurement legislation.

The key to success lies in understanding the needs of a given community and developing a framework that caters for those needs. This will ensure that, together with suppliers, organisations can

8 | Supply Chain Outlook Issue 1

make a targeted and meaningful contribution.

Therefore, companies with extensive supply chains should be thinking about how they can unlock social value through their supplier relationships by channelling the spirit of the Social Value Act.

Of course, private sector organisations are not bound by the act (unless they are working directly with the public sector), but even so, they should consider how to embed value creation in their own procurement and supply chain management solutions.

There is a good business rationale for doing this, such as bettering customer relations, attracting and retaining high-quality people, increasing brand awareness, and reinforcing brand reputation.

The bottom line is that everyone stands to benefit from a company’s contribution to building a flourishing community. For example, the local workforce becomes more resilient, which in turn leads to a booming local economy that feeds back into the supply chain, thus forming a virtuous circle.

SETTING CONTRACTUAL EXPECTATIONS

Broadly speaking, the bigger the company, the more scrutiny it comes under. Yet RepRisk, a due diligence database on ESG and business conduct risks, recently found that nearly one in three public companies linked to greenwashing are also associated with social washing.

Buyers have an integral role to play in guaranteeing that their organisation will be beyond reproach, simply by ensuring that suppliers are contractually bound to deliver on their social value commitments when bidding for the work.

By putting in place a system that ensures social value delivery, it will naturally become business as usual - and this stands to benefit every stakeholder on many levels.

MEASURING, TRACKING, AND REPORTING

The most effective way to capture and report social value performance is by using a robust measurement framework such as the Themes, Outcomes, and Measures (TOM) System™.

In the UK, it is endorsed by the Local Government Association that ensures procurement spend goes as far as possible, enabling buyers to track and measure social value from commitment to delivery. It is fully compatible with the UN SDGs and is already the UK’s most established and widely adopted method for recording and reporting social value in the supply chain.

Where profit is measured in standard accounting terms, social value is measured by actions, with a financial merit attributed to it. For instance, providing a job for someone who has been in long-term unemployment saves money for the UK government in benefit payments and provides income to the newly employed individual that will be spent in the local economy.

Furthermore, as a result of having an income, they are likely to be healthier for longer and therefore not become a burden for the NHS. Thus, all of these benefits can be valued.

The TOM System™ is fully transparent and the data is validated by a third party, which adds another layer of protection against accusations of greenwashing and social washing.

Demand for third party data validation and reporting is naturally expected to increase, with both suppliers and buyers relying more heavily on measurement frameworks to report on social value performance. After all, reporting inflated results has the potential to do significant harm to an organisation’s reputation.

Social Value Portal has created a resource for buyers that sets out what best practice looks like when embedding social value into procurement.

ABOUT THE EXPERT

With a career spanning more than 30 years, Guy Battle has been leading and prioritising sustainable change, aiming to tackle large-scale issues such as sustainable design, climate change, and social impact.

Battle set up an online measurement, evaluation, and reporting platform, known as Social Value Portal, in 2014 and currently works cross-industry on developing social value solutions that deliver real and tangible impacts.

He is passionate about the contribution businesses can make to improving society and is often asked to speak at industry events and conferences about the power and potential of social value.

Supply Chain Outlook Issue 1 | 9 EXPERT EYE SUSTAINABILITY

TIME-DEFINITE SHIPMENTS

DHL Group (DHL), a multinational company headquartered in Germany, generated revenues of more than €94 billion in 2022.

Over time, DHL has evolved from a document courier into an international express shipping company, boasting one of the world’s largest fleets of over 300 aircraft, carrying just about anything permitted for air carriage. Today, DHL is the logistics company for the world, with the purpose of ‘Connecting People and Improving Lives’.

DHL offers customers a convenient door-to-door package delivery service, providing access to 220 countries and territories worldwide.

Known for its speed and commitment to its customer promise of ‘Excellence, Simply Delivered’, DHL’s focus strategy resonates with every employee: “motivated people drive great service quality, which creates loyal customers and in turn a profitable and sustainable network.”

As someone who has been with

Transporting urgent documents and goods reliably and on time from door to door, DHL Express is the undisputed global leader in international express shipping. Chitra Shinde, Vice President of Operations at DHL Express New Zealand, details the division’s operations in the country

DHL for 25 years, I consider myself fortunate to have witnessed the company’s growth through investments in infrastructure, fleet expansion, introduction of automation, scalable software, and innovative processes.

TRANS-TASMAN CONNECTION

DHL Express, one of the five main divisions of DHL, commenced operations in 1969.

The division started by flying shipping documents to pre-clear cargo on ships, followed by banking and other time-sensitive files.

I started my career as a trainee at DHL Express in Mumbai, India. I have worked in five different countries, including Papua New Guinea (PNG), Fiji, Australia, and presently New Zealand, where I hold the position of Vice President of Operations.

DHL Express began its operations in New Zealand in 1973, recently celebrating its 50th anniversary in October 2023.

Renowned for our strong

10 | Supply Chain Outlook Issue 1

trans-Tasman connection, 76 percent of our exports head across the ditch to Australia.

DHL Express first introduced an overnight aircraft service to connect New Zealand and Australia in 1991 via Auckland and Sydney. The aircraft operated five nights a week, and in 2018 was upgraded to a larger aircraft to cater to the growing demand for trans-Tasman trade.

To further enhance our transTasman service, we introduced an additional aircraft in 2020 that connected Auckland to Melbourne five times a week. This route was quickly upgraded in 2023 to accommodate higher demand.

Moreover, this aircraft also flew to Christchurch, marking the first time DHL Express connected the North and South Islands of New Zealand. Our overnight service covers major cities like Whangarei, Auckland, Wellington, Christchurch, Hamilton, Tauranga, Rotorua, Taupo, Napier, Hastings, Palmerston North, Queenstown, New Plymouth,

Dunedin, Nelson, and Blenheim, with further connections to smaller towns.

While everyone is asleep, our dedicated team starts operations as early as 2am (even before our farmers) to ensure the successful delivery of overnight services, so that customers can open their business with confidence around New Zealand.

PEOPLE AT THE CORE

We understand that our people are the core of everything that we do. For four consecutive years, we have been named one of the world’s best workplaces, ranking second globally and first in Asia, Latin America, and Europe.

This is no easy feat for a logistics company that is so diverse with a presence across the globe. It is the result of relentless focus and a passion for people, led by a very competent senior leadership team.

DHL Express believes in delivering great results without compromising on respect. We also ensure that our front-line supervisors and managers emphasise a passion for customers, speed, a can-do attitude, and getting

things right the first time.

By attracting and retaining the right talent, fostering collaboration, and promoting teamwork, we have built a culture that drives excellence.

My role requires me to execute our global strategy locally. This involves motivating and developing our team’s skillsets to provide the best service to our customers.

We prioritise inclusivity, collaboration, and creating a great place to work for all. To achieve continuous improvement, we actively seek input from our employees, leaders, business partners, and customers.

Passion for continuous improvement is part of our DNA and the reason why we launched ‘First Choice’ - a worldwide programme to drive continuous improvement of processes and services.

Through the Insanely CustomerCentric Culture (ICCC+) programme, we collect direct feedback from customers to identify areas for improvement based on their experiences. This approach has fostered an irreplaceable culture of excellence.

DHL EXPRESS ASIA PACIFIC

SETTING THE STANDARD

The recent COVID-19 pandemic was an unprecedented crisis that exposed the frailty of supply chains. Businesses faced challenges in sourcing products, experienced long delays, and dealt with cost increases.

At DHL Express, we also faced significant disruptions as we lost access to passenger flights overnight, which is a significant part of our network, especially in this part of the world. To adapt, we chartered passenger flights and repositioned our network to maintain connectivity.

We were able to change flight routes due to our expanded intercontinental network. We kept the world connected as we moved urgent medical supplies and lifesaving equipment and vaccines. This lack of air network capacity resulted in unprecedented demand for cargo space.

In New Zealand, we also lost access to our domestic commercial passenger air network, prompting the need for us to introduce the new aircraft to connect the South Island to Auckland.

From Auckland and Christchurch, we established road connections to reach all domestic locations. It was an intense time of unprecedented change, creativity, and innovation to ensure that our customers were not

“AT DHL EXPRESS, WE CONSIDER OURSELVES FACILITATORS OF GLOBAL TRADE, WORKING CLOSELY WITH REGULATORS AND CUSTOMERS TO ENSURE EASY AND ACCESSIBLE TRADING FOR ALL”
– CHITRA SHINDE, VICE PRESIDENT OF OPERATIONS, DHL EXPRESS NEW ZEALAND

impacted and could rely on us for their own business continuity.

As the logistics company of the world, we embrace our responsibility to set industry standards in environmental, social, and governance (ESG) matters. Due to the nature of our industry, we have a huge responsibility; we therefore set an ambitious goal in 2017 to achieve net zero carbon emissions by 2050.

To work towards this goal, we aim to electrify 60 percent of last-mile vehicles by 2030. We focus

on implementing carbon-neutral designs for new buildings,

educating employees as Certified GoGreen Specialists and engaging in environmental activities such as tree planting.

We recently launched the GoGreen Plus service, which is about reducing carbon emissions using sustainable aviation fuel (SAF). An aircraft flying on SAF emits up to 80 percent less CO2 over time than an aircraft flying on traditional jet fuel.

At DHL Express, we consider ourselves facilitators of global trade, working closely with regulators and customers to ensure easy and accessible trading for all.

group.dhl.com 12 | Supply Chain Outlook Issue 1 DHL EXPRESS ASIA PACIFIC

The global resource for supply chain professionals and organisations

Building on the global success of our regional titles – APAC Outlook, Africa Outlook, EME Outlook, and North America Outlook – Outlook Publishing is proud to introduce a digital magazine and web platform, dedicated to the supply chain sector.

As supply chain organisations worldwide confront unprecedented change, embracing technological innovations and incorporating critical environmental sustainability agendas, now more than ever is the time to showcase the strides being taken in this dynamic sector.

A multi-channel brand, Supply Chain Outlook brings you the positive developments driven by organisations across the global supply chain industry through its various platforms. Discover exclusive content distributed through its website, online magazine, social media channels, and dispatches delivered straight to your inbox with a bi-weekly newsletter.

Through this compelling new venture, we foreground the movers and shakers of the industry. To participate as a featured company and join us in this exciting endeavour, contact one of our Project Managers today.

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EVOLUTIONS IN E-COMMERCE

Venipak Commerce proposes a new all-in-one service to bridge the gap between sales channels, warehousing, and distribution in the Benelux region’s fast-expanding e-commerce sector. Michael van der Wal, Regional Managing Director, and Justas Šablinskas, CEO, tell us more

Writer: Lily Sawyer
14 | Supply Chain Outlook Issue 1
Justas Šablinskas, CEO (left) with Michael van der Wal, Regional Managing Director

Apioneering e-commerce and logistics solutions company, Venipak Commerce (Venipak) caters to European distributors, suppliers, and manufacturers who wish to bolster their online presence.

“With a focus on supplier acquisition, marketplace expansion, and advanced technological integration, Venipak offers a comprehensive range of sales and fulfilment services, designed to adapt to shifts in the market,” opens Justas Šablinskas, CEO.

By integrating advanced technology solutions

and e-fulfilment services, Venipak hopes to facilitate seamless international sales and accelerate delivery times across key regions in the Benelux, Germany, Poland, and the UK.

The Benelux region, comprising Belgium, the Netherlands, and Luxembourg, has witnessed a marked rise in e-commerce of late. 74 percent of all internet users in the region reportedly purchase their goods online, whilst the Dutch e-commerce market alone is expected to generate over USD$52 billion by 2029.

VENIPAK COMMERCE FEATURE Supply Chain Outlook Issue 1 | 15

As a result, Venipack has launched a new multi-channel solution that is able to transform e-commerce fulfilment, drive sales, enhance operational efficiency, and improve the overall customer experience, placing the company in an ideal position to benefit from a burgeoning sector.

“Our all-in-one service encompasses all operational processes, from e-commerce sales channel brokerage to warehousing and distribution,” reveals Micheal van der Wal, Regional Managing Director.

The company’s expansion in the region follows Venipak’s strategic acquisition of Dutch wholesaler Strengholt Entertainment BV (Strengholt) in 2023, which also contributed to the company’s emerging status as a global market player.

“At Venipak, we have studied the upsurge in the Benelux’s e-commerce activity and located various limiting issues. We aim to remove the burden from our customers’ shoulders, allow them to save money and concentrate on purposeful development without geographical or business process barriers,” he adds.

“Our mission is to help clients expedite their growth. In turn, we start off new partnerships with a strategy best suited to their plans to accelerate their sales and logistics journey”
– JUSTAS ŠABLINSKAS, CEO, VENIPAK COMMERCE
Justas Šablinskas
VENIPAK COMMERCE FEATURE 16 | Supply Chain Outlook Issue 1

STRATEGIC EXPANSION

Venipak’s recent acquisition of Strengholt has allowed the company to onboard localised expertise with insight into the Benelux’s unique market needs, providing a robust foundation upon which to build a new niche in logistics services.

Due to staff shortages, labour costs, and inflation impacting 82 percent of businesses in the region, a strong leaning towards automation is evident.

As such, around two-thirds of businesses seek investment in software-led solutions, outlining the

region’s willingness to embrace current and modern opportunities.

“As the e-commerce market shows exponential growth, the demand for automated and increasingly efficient logistics solutions becomes more pronounced,” Šablinskas posits.

Therefore, Venipak has established a strategic stance to meet this demand.

“We are in a good position to enter deeply into this niche while expanding the scope of what’s previously been possible,” he adds.

Supply Chain Outlook Issue 1 | 17
“Our all-in-one service encompasses all operational processes, from e-commerce sales channel brokerage to warehousing and distribution”
– MICHAEL VAN DER WAL, REGIONAL MANAGING DIRECTOR, VENIPAK COMMERCE

NEW SOLUTIONS

As the e-commerce sector continues to evolve, Venipak has identified a new focal point – e-fulfilment. As a highly efficient method of managing e-commerce inventory, e-fulfilment caters to the unique needs of online sales, optimising space as well as resources.

“It is aligned with the specific needs of e-commerce, such as variable demand and the handling of single-purchase items,” van der Wal notes.

In addition, e-warehousing allows businesses to access accurate inventory management and optimised return processes through advanced software integration and specialised systems, all of which are integral for maintaining a competitive edge within a saturated market.

Michael van der Wal
VENIPAK COMMERCE FEATURE 18 | Supply Chain Outlook Issue 1

According to Šablinskas, the e-wholesale niche’s true potential is still emerging.

“Whilst looking for ways to expand globally, we tried to deconstruct the whole trading chain and found this niche, which is practically non-existent – not only in Europe but also throughout the world,” he reveals.

On a mission to provide the best local options with faster deliveries in any major market, Venipak hopes to benefit from developments in e-fulfilment.

DIVERSE DISTRIBUTION

In addition to its more recent developments, Venipak offers e-commerce brokerage services between clients and brands such as Amazon, Allegro, Zalando, and Bol, amongst others, as well as physical outlets such as Aldi, Lidl, and Action.

“Our e-commerce brokerage services enable Venipak to act as an intermediary for the introduction of customers’ products into foreign markets like the US, Europe, and Asia, through integrations with Amazon and other trading platforms and supply chains,” says Šablinskas.

In addition, new and emerging partnerships with e-commerce businesses reduce risk when entering new markets.

“Our mission is to help clients expedite their growth. In turn, we start off new partnerships with a strategy best suited to their plans to accelerate their sales and logistics journey. We don’t want our clients to have blind spots on what is possible when it comes to cost saving and optimisation,” he concludes.

Thus, Venipak’s expansion marks a transformative approach to e-commerce logistics in the sense that it offers integrated solutions that are able to meet rising demands in the sector, while a focus on automation and e-warehousing exemplify the company’s commitment to increasing scalability and efficiency.

venipak.com

Supply Chain Outlook Issue 1 | 19
Michael van der Wal (left) with Sabina Bačiulienė (middle), Venipak’s Head of Global Development

The distant sight of summer on the horizon signals festival season across the UK as the nation grabs its wellies and gets ready to party at one of the many music events taking place across the country.

Whatever your musical taste, be it rock, pop, hip-hop, house, or anything in between, there’s a perfect event for everyone. Indeed, whether your heart desires to get stuck into the middle of the action, deep in the mosh pits, or you prefer a serene, seated view of things, British festivals continue to offer the entire spectrum of musical diversity.

A COMPLETE MUSIC FESTIVAL

We compile a comprehensive plan and prepare the logistical festival. From talent acquisition scouting, we detail all the Writer:

Every summer season, come rain or shine, the nation witnesses hundreds of thousands of music lovers united in a field, park, or innovative city location, celebrating the incredible sound of their favourite artists.

From world-renowned mega-events like Glastonbury, Reading and Leeds, and the Isle of Wight Festival to the newer surfing festival, Boardmasters, or family-friendly Camp Bestival and Latitude, there’s an event to suit every age range and demographic, as the biggest acts across the globe descend on the UK to take part in these iconic

Ed
TOPICAL FOCUS FEATURE 20 | Supply Chain Outlook Issue 1

COMPLETE GUIDE TO FESTIVAL LOGISTICS

We examine some of the key logistical areas that must be studiously prepared for when organising a successful UK music festival. comprehensive guide on how to effectively logistical elements of a music acquisition to security and location the essential information

gatherings. In terms of the meticulous preparation for these gigantic spectacles, nothing can be left to chance. A complex network of components must be perfect in order to offer the best shows, guarantee the safety of everyone who has paid to live the experience, and make sure everything runs smoothly. This is sometimes not the easiest challenge, and the planning and preparation of a successful music festival is a great logistical mission for its organisers.

Requiring a monumental amount of intense work

before, during, and after the event, which often remains invisible to the general public, festival organisers must be able to comprehensively manage large numbers of staff and equipment and facilitate effective mobility, as well as plan the setup of complex infrastructure, often in remote places and adverse weather conditions.

Supply Chain Outlook Issue 1 | 21

VENUE AND SETUP

Choosing a venue should be at the top of any festival logistics checklist.

Location — A festival must be situated somewhere that suits your goals, and if a large number of attendees are expected to travel to get there, you need a location with a variety of convenient transport links nearby.

Mock-up — When dealing with an expansive area and numerous different activities and performances, it becomes important to visualise your space with a site map. The most important thing is to make sure that it’s accurately scaled and easy to read.

Equipment — An element that is often overlooked in the logistics planning department is festival equipment. Artists and vendors will undoubtedly be carting large electrical apparatus, sound gear, stage setup, and booth materials into the venue. For this, there’s no better way to organise the surplus hardware than with reusable, plastic, collapsible bulk boxes.

22 | Supply Chain Outlook Issue 1 TOPICAL FOCUS FEATURE
‘A range of diverse activities and spectacles, such as art installations, water features, outdoor film screenings, or pop-up shops will keep guests engaged between big performances’

SECURING TALENT

You can’t have a festival without headliners, and while designing an event’s lineup is definitely one of the most exciting parts of the planning stage, it also requires juggling lots of scheduling responsibilities.

Pitch — The most affordable way to book talent is to reach out to acts directly by creating a succinct, wellorganised pitch that outlines your event and can be sent to desired artists. For events on a bigger budget, partnering with a booking agency can be a good way to secure performers.

Schedule — A smooth, well-organised festival depends on smart scheduling. Not only is it key to ensure that attendees get to see all the artists that they want to see, it also guarantees that festival staff are scheduled and deployed at the appropriate times.

Enhance — The best festivals feature more than just glamorous headliners; they also showcase compelling extras that might convert a previously on-the-fence fan to a committed devotee. A range of diverse activities and spectacles, such as art installations, water features, outdoor film screenings, or pop-up shops keep guests engaged between big performances.

Supply Chain Outlook Issue 1 | 23

TICKETING, SALES, AND ENTRY

Once a date is set, it’s then time to consider ticketing. To generate buzz for your event, it’s often a good idea to offer presale tickets to a select group of fans or attendees. It is also vital to ensure the use of a reliable, easy-to-use online ticketing platform to minimise customer service issues.

Attendee flow — Anyone who has ever been to a large event of any kind will know that getting in and out of the arena or location is one of the most challenging and often stressful parts of the experience. Before the festival starts, it is important to create a detailed plan of how to funnel guests to where they need to go without causing heavy traffic and to identify and clearly signpost all exits.

Scanners — If you’ve sold over a few hundred tickets, you will undoubtedly require an investment in ticket scanners to ensure that event-goers get through the gates quickly, safely, and efficiently.

Security — Security teams play a crucial role in managing the crowd by controlling the flow of people in and out of the festival grounds. They also ensure that visitors are not overcrowded and maintain order in the event of an emergency.

Payments — Accepting all forms of payment, both on-site and online, will help boost overall event sales. Not only will this make it easier for customers to secure tickets, but it will also make an event look more reputable and legitimate. Many festivals also now offer staggered payment plans, which can help increase sales.

24 | Supply Chain Outlook Issue 1 TOPICAL FOCUS FEATURE

spend a huge amount of money on their tickets and often consider these events as an escape or retreat from everyday life. Therefore, organisers cannot afford to make crucial services, artist performances, key information, and food a hassle to find.

Information — Any festival setup must include numerous accessible information hubs so that festival-goers can seek guidance when they need it. Additionally, information booth workers should provide maps and flyers, and be able to quickly direct attendees to medical services, lost and found, security, and other on-site facilities. Furthermore, all this information must also be easily available on the event website or app.

Customer service — It is absolutely essential to designate a few trusted members of event staff as customer service professionals so that volunteers and other attendees can direct any conflicts or issues to a specific person.

The festival must simultaneously have a clear strategy in place for how to handle issues with ticketing, entry, vendors, and more.

Personalisation — Every festival should aim to create a truly unique and memorable experience by adding a personal touch.

MARKETING AND AWARENESS

Once everything else is prepared and ready, it’s essential to effectively market the event and start to build excitement as far in advance as possible. This shouldn’t pause once the gates open, either. Throughout the preparation process, it is vital to consistently engage audiences on social media platforms, which can lead to locking in the crucial influence of promoters and press coverage. Every festival should be considered as a brand in itself, featuring its own personality, narrative, and goals.

Authenticity — The first rule of event marketing is to remain authentic. A valuable lesson learned from the now infamous Fyre Festival disaster, which spent millions on glitzy marketing materials featuring Kendall Jenner and a fleet of private jets, is that it’s crucial to be upfront and honest with ticketholders every step of the way.

Social — If the target audience of the festival is largely from a digital generation, you cannot afford to underplay social media engagement. Creating a hashtag and incorporating it throughout the event is a key example of something that visitors are more likely to share.

Livestream — Social media potential can be maximised and interest can be enhanced for the following year by livestreaming some of the biggest and most well-attended, iconic festival moments.

Supply Chain Outlook Issue 1 | 25

SPOTLIGHT ON HEAVY VEHICLES IN AUSTRALIA

The envy of industry around the world, Australia’s high-productivity heavy vehicles are ready to undertake any and every task imaginable thanks to their ingenuity in design, engineering, and manufacturing Writer: Jack Salter | Project Manager: Deane Anderton

Australia is a world leader in many aspects of heavy vehicle transport.

The country has a thriving and robust local industry that comprises hundreds of forward-thinking manufacturers and suppliers of innovative trailers, trucks, and other specialised vehicles, components, equipment, and technology.

This is in addition to the product assembly of global heavy vehicle brands such as Mack, Kenworth, DAF Trucks, SEA Electric, Hyzon, and Volvo. The latter is Australia’s largest heavy vehicle powerhouse and the sole truck manufacturer to have been awarded the

26 | Supply Chain Outlook Issue 1

AUSTRALIA

prestigious Australia Made certification.

Heavy vehicles in the country are manufactured to withstand Australia’s climate and operating challenges. Indeed, customers Down Under must contend with heavier loads, greater distances, and changeable weather, from the hot, dusty Outback to the Snowy Mountains.

These tricky conditions mean that heavy vehicles have to work harder in Australia than just about anywhere else in the world and are therefore tailored accordingly.

Australia also boasts many unique truck and trailer combinations that simply do not exist in any other country.

It is well known that Australia has pushed the boundaries

in truck and trailer size, gross mass, and configuration. Decades ago, it even broke new ground in terms of the roads that vehicles drive on as, unlike many other developed countries, much of Australia is thinly populated and features incredible distances between its centres of population, both large and small.

This creates a complex infrastructure when it comes to providing an expansive yet reliable network of sealed roads, suitable for both light and heavy vehicles.

SKILLS SHORTAGE

Australia’s heavy vehicle industry directly employs over

HEAVY
Supply Chain Outlook Issue 1 | 27 HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT

70,000 people, who are responsible for designing, manufacturing, servicing, and repairing some of the world’s most efficient, safe, innovative, and technologically advanced vehicles.

The sector’s vast workforce is also involved in the importation, distribution, modification, and sale of these impressive vehicles, as well as their components, equipment, and technology.

A career in the heavy vehicle sector requires far more than just a singular skillset. As vital cogs in the machinery that allows the industry to keep Australia moving, it’s about how individual contributions fit into the bigger picture.

However, the heavy vehicle industry in Australia continues to suffer critical shortages of skilled labour. This is not an anomaly, either, as labour market skill shortages are as deep as they are wide across the country.

The current pipeline of workers is struggling to keep pace with growing demand in the sector, with an order book extending well into 2024 that needs filling. The

work does not end there, as once those vehicles are on the road, they also need to be maintained.

Recent vacancy figures indicate that several thousands of motor mechanics, electricians, metal fitters, and machinists are required to address the shortage.

In Victoria, the state government is also injecting an extra AUD$1 million into training more heavy vehicle drivers to keep supply chains moving through a partnership with the Victorian Transport Association (VTA).

The partnership offers accredited training for aspiring heavy vehicle drivers and assists them in securing employment as part of VTA’s Driver Delivery programme, which has received continuous investment from the government since it was launched in 2016, resulting in the training and placement of nearly 400 skilled drivers on the roads.

In addition to improving road safety, the programme aims to tackle heavy vehicle driver shortages, tailored to attract and retain younger drivers for critical transport and logistics supply chains.

28 | Supply Chain Outlook Issue 1

SHOWCASING THE INDUSTRY

Along with the Technical and Further Education (TAFE) network and other Registered Training Organisations (RTOs), a stream of skilled workers from the Australian school system is required to rectify the labour shortage.

There is an overwhelming need to disseminate career information to students, and the wider public for that matter, to provide a more comprehensive understanding of the sector, the roles on offer, its operational diversity, and the job needs of the future.

A variety of initiatives promote careers across the country’s heavy vehicle industry, including the Brisbane Truck Show, the southern hemisphere’s largest road transport event displaying the most comprehensive range of trucks, trailers, components, equipment, accessories, and technology in Australia.

With an incredibly rich, continuous history that dates back half a century, the Brisbane Truck Show has always been about coming together, sharing ideas, discussing challenges, and showcasing the innovative ways to address them.

A record number of pupils were hosted at last year’s running of the Brisbane Truck Show, with well over 1,600 students from over 50 schools in attendance.

Australia’s largest-ever showcase of commercial zeroemission heavy vehicles (ZEHVs) was also on display at the 2023 event, from both major original equipment manufacturers (OEMs) as well as a raft of new players.

The ZEHVs exhibited ranged from battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (HFCEVs) to more conventional trucks powered by renewable diesel, an advanced biofuel made from animal fats, vegetable oils, and agricultural waste.

Significant investment has been made towards increasing vehicle efficiency and reducing the emissions of diesel-powered vehicles to accompany the shift towards ZEHVs.

There are also calls for the Australian government to support the enablement of onshore renewable diesel refining, as the fuel is not currently commercially available in the country.

This is despite renewable diesel playing a critical role in decarbonisation, given its chemically identical properties to conventional diesel, which means that machinery using the fuel does not require modification and is widely supported by OEMs.

Access to domestically produced renewable diesel represents a significant and immediate opportunity to decarbonise a range of hard-to-abate sectors where alternative technologies are not readily available.

Diesel engines, traditionally the driving force behind the industry, have become a highly efficient and productive way of powering heavy vehicles since they were first

developed over a century ago.

However, as Australia reduces its environmental impact in line with international commitments to reduce carbon emissions, the push towards ZEHVs has gained huge momentum.

All levels of government are currently considering the development of a coordinated approach to decarbonising the heavy vehicle task, covering a range of issues both transport and non-transport related.

As progress is made towards decarbonisation, the industry may change, reprioritise, or develop new technologies.

Supply Chain Outlook Issue 1 | 29 HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT
Brisbane Truck Show

Crisis avoided with innovative Projecta INTELLI-START IS3000 & IS5000 Jump Starter Range

There’s an old saying in the road freight transport industry: ‘If the wheels aren’t turning you aren’t earning’. Vehicle downtime can cause delays, decrease productivity, and ruin reputations. If this is caused by something like a discharged battery, there’s a cost-effective solution on hand to give operators – whether owner drivers or fleet managers – some insurance.

Power-packed, the IS3000 and IS5000 Jump Starters are ideal for use on large industrial and commercial equipment including heavy-duty trucks, tractors, and agricultural equipment. Until now, there hasn’t been an easy or efficient means of jump-starting heavy equipment, with users often resulting to moving large batteries around on unwieldy trolleys to jump start the machines. With their easy portability, light weight (10.6kg and 13.5kg respectively) and patented Rapid Recharge Technology (RRT), the IS3000 and IS5000

industrial jump starters alleviate these pain points, adding convenience and efficiency for users. The IS Jump Starter range also reduces the risk of being caught out without charge when going to jump start a vehicle, as recharging the trolley rigs can often be forgotten.

Rapid Recharge Technology

By leaving the INTELLI-START Jump Starters connected to a vehicle’s battery once started, RRT can fully replenish the energy that was discharged during the starting process in just 40 seconds. This feature means that the INTELLI-START Jump Starters will then be ready to use in the next emergency without needing regular recharging –its clever technology that is unique to the Projecta INTELLI-START Jump Starter range.

The IS3000 is suitable for both 12V and 24V electrical systems and provides 1000A clamp

power for 12V systems and 850A for 24V electrical set-ups, along with 3000 peak amps – it’s enough to start petrol and diesel engines up to 12L displacement in 12V machines and all 24V engines. The larger IS5000 has even greater clamp power, an impressive 1500A in 12V electrical systems and 1000A for 24V systems – in both cases peak amps are 5000. This output is sufficient to breathe life into petrol and diesel engines up to 16L capacity in equipment with 12V systems, and unlimited capacity in the case of vehicles with 24V electrics. The two jump starters also offer ‘no battery’ operation and can jump start vehicles without a starter battery.

Both the IS3000 and IS5000 Jump Starters feature a strong exterior casing that uses a steel chassis and rubber over-moulded construction with integrated handle and concealed cable storage. Also, these products ensure reliability and safety, utilising ‘no solder’, high current connections and solid 3mm clamp teeth, while an advanced allin-one protection system prevents surges, short circuits and overheating in these units.

For greater convenience, both models also boast auto sensing clamp connection, while operating this equipment is also simple via the intuitive LCD display with real time updates.

When it is finally time to recharge the IS3000 and IS5000, this is done using the included docking station, which provides hassle-free benchtop charging. Owners can also rest easy knowing that the INTELLI-START range is equipped with premium LiFePO4 batteries, the safest lithium technology available.

Additionally, the units feature an advanced, ‘all-inone’ protection system that prevents surges, short circuits, and overheating.

The IS3000 and IS5000 also deliver excellent longevity for users because they’re designed to deliver up to 2000 battery cycles, around four times more than competitor Lithium Cobalt based jump starters.

Other Projecta INTELLI-START models in the lineup include the IS920, IS1220, IS1400, IS1500, and IS2000. All INTELLI-START variants are Restriction of Hazardous Substances (RoHS)-compliant, and Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) certified, and feature the globally patented RRT.

The latest additions to the INTELLI-START Jump Starter range are available from leading automotive and transportation outlets nationwide and are covered by a generous two-year product replacement or refund warranty.

www.projecta.com.au

NARVA Ultima Connect+ Controller offers complete lighting control

The new Ultima Connect+ Controller has arrived, offering owners of the recently launched Ultima LED Light Bar range, the ability to further maximise the performance of their light bars, by adjusting the beam shape and intensity to suit the environment and driving conditions.

An optional extra across the new Ultima LED Light Bar line-up, the controller offers further lighting adjustment with three preset, customisable driving modes.

For highway driving, the beam can be set for maximum distance with less spread to avoid road sign flare. In regional and rural areas, the distance can be reduced with a focus on maximum spread allowing possible hazards such as wandering livestock or wildlife, providing additional safety.

Ultima Connect+ Controller also allows drivers to alter brightness (main and aux controls), provides a boost mode that delivers 15 percent more power

for 30 seconds, and with its LIN Bus technology, acts as a single point of control for all Ultima Connect+ enabled products.

The controller’s generously sized buttons make it easy to use on bumpy roads and corrugations, while multiple mounting options and single wire installation provide easy fitment across a wide range of vehicles.

The Ultima Connect+ Controller is the perfect companion to the Ultima LED Light Bar range, which include eight- and 24-inch models that can be combined to also provide 40- and 48-inch bar configurations. With Ultima, owners can also select from both hybrid and flood beam light bar options depending on their preference. Together, Narva offers buyers customisation options like never before.

Narva’s new Ultima Connect+ Controller, Ultima LED Light Bars and associated accessories are available nationwide from leading automotive, four-wheel drive and transportation outlets.

Local: 1800 113 443 | International: +61 3 9730 6000 | www.narva.com.au

SUSTAINABILITY IMPROVEMENTS

For decades, improvements have been made to the environmental footprint of the country’s heavy vehicle industry.

The Australian government estimates that since 1990, heavy vehicle noxious emissions standards have reduced carbon monoxide (CO) and hydrocarbon (HC) emissions by over 80 percent.

This is despite the fact there are now approximately 60 percent more heavy vehicles on the road, and the total distance travelled has almost doubled.

However, even though the industry provides some of the world’s most efficient, safe, innovative, and technologically advanced vehicles, there remain significant barriers to the adoption of ZEHVs.

Some of these barriers include vehicle design rules, a lack of electric truck recharging and hydrogen refuelling infrastructure, and a temporary but significantly higher upfront cost.

The industry has made a compelling case for the removal of such obstacles for heavy vehicles operating across Australia. Therefore, its position on the regulatory changes needed to support next-generation ZEHVs is clear, but urgent action is required by the government and its policy and regulatory agencies.

This includes a need to review heavy vehicle axle weight limits, a position that is unilaterally supported by industry

associations, manufacturers, and suppliers to the road freight transport sector.

The sheer volume of industry and stakeholder discussions on ZEHVs is overwhelming, yet current axle load limitations are one key theme that has emerged.

If low truck axle load limits are not addressed, it will strangle efforts to further decarbonise freight transport, preventing the industry from contributing to mandated domestic emissions reductions targets. Although Australia has a legislated commitment to net zero emissions, there is no plan for reducing emissions from road freight transport.

Electric trucks typically weigh more than their diesel counterparts, limited by high front axle loads, which means the existing weight limit in Australia has presented an industry-wide roadblock for the adoption of zeroemission technology.

INCREASING WEIGHT LIMITS

One of the main reasons why Australia has lower load axle limits than other developed countries is due to its sprayed seal road structures.

An interesting departure from other road structure designs, sprayed seals are effectively a thin layer of bitumen that is sprayed as a hot liquid onto a compacted base layer, which is then covered with a layer of aggregate to form the road surface.

34 | Supply Chain Outlook Issue 1
Brisbane Truck Show

Often, the base layer beneath the bitumen is unbound, which means that it may be treated with a stabilising agent such as cement, but sometimes it is not treated at all.

The result is a relatively cheap, flexible road type that is easy to construct and suitable for roads carrying several thousand vehicles a day. Usage of sprayed seals therefore grew rapidly after their introduction in the early 20th century, and they now account for around 70 percent of the total length of all sealed roads in Australia.

On the other hand, sprayed seals are very thin and susceptible to increases in applied load, unlike other rigid road structure types such as asphalt and concrete.

This is disadvantageous for ZEHVs in Australia, which have higher tare weights than conventional internal combustion engine (ICE) trucks due to the equipment comprising the electric drivetrain, such as the battery in the electric motor.

For HFCEVs, the problem is exacerbated even further when you add in the weight of the fuel cell and the hydrogen storage and delivery system.

A number of actions are required to address this issue, including research into next-generation sprayed seals to support higher axle loads.

Allowing heavier electric and hydrogen trucks across the whole of Australia will be vital in opening access to new low-emission heavy vehicles and ZEHVs, which alongside

WIRELESS CHARGING FOR HEAVY VEHICLES

Heavy vehicles could soon be able to charge wirelessly as they drive on the highway thanks to a new AUD$3 million grant from the Australian government.

The world-first project, led by the Swinburne University of Technology, Melbourne, aims to implement an embedded dynamic wireless charging technology into roads, unlocking the uptake of electric heavy vehicles.

It is claimed that electrifying heavy vehicles could save Australia AUD$324 billion by 2050, while contributing to a greener, safer, and more efficient transport sector.

The AUD$8.2 million prototype for embedding advanced wireless charging infrastructure on regional roads is funded by the Australian government’s Cooperative Research Centres Projects (CRC-P) Grants scheme, which supports short-term collaborative research projects.

HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT Supply Chain Outlook Issue 1 | 35
How Geotab’s Electronic Work Diaries are driving success for Australian fleet managers

Whether you’re managing a fleet of cars or heavy trucks, Geotab’s Electronic Work Diary (EWD) helps keep a finger on the pulse of every vehicle movement and activity. This innovative system monitors and records the work and rest times of heavy vehicle operators, ensuring they are aligned to legal requirements. Here’s why you should get your fleet onboard:

Fatigue Management for Compliance and Accuracy

Heavy trucks that cover long distances are legally obligated to adhere to regulations regarding driver fatigue. EWDs assist fleet managers in maintaining compliance with national heavy vehicle regulations by accurately recording driver work and rest time. By automating data entry and streamlining the record-keeping process, EWDs not only reduce errors but also alleviate the administrative burden on both drivers and fleet managers.

Achieve Real-time Monitoring and Efficient Reporting

EWDs offer real-time visibility into driver activities, a critical aspect of workplace safety. Through real-time monitoring, fleet managers can ensure the safety and accountability of all staff.

Monitoring driving hours, rest breaks and compliance status in real-time allows for the proactive management and timely interventions to address potential issues.

EWDs also facilitate efficient reporting by quickly generating data for audits, compliance checks and internal reviews, thereby relieving pressure on fleet managers.

Gain Data Insights for Optimization

EWDs offer a great deal of valuable insights into driver behavior, vehicle performance, idling times, fuel consumption and overall fleet efficiency. The information collected is presented in an easyto-understand format, which empowers fleet managers to maximise the utility of the data. For mixed fleets that contain both EVs and internal combustion engines (ICE), fleet managers can extract specific details about each vehicle. Additionally, they can also advance their business by optimising routes, vehicle maintenance.

Easy installation and integration with telematics

Additionally, EWDs provide a comprehensive fleet management solution through seamless integration with telematics. Fleet managers have the flexibility to tailor their user interface platform to align with their business needs. This customisation involves building upon the base plan, which provides essential details such as location, speed and driver identification. The effortless and non-intrusive integration between the EWD and telematics solutions makes it easy to adopt and scale as needed to fit any fleet.

Cost competitive pricing tailored to companies of every size

In summary, integrating Electronic Work Diaries into fleet management reflects a company’s commitment to safety, technological advancements and operational efficiency. They empower fleets to align seamlessly with evolving regulations and industry standards. For fleet managers, EWDs play a pivotal role in ensuring compliance, alleviating administrative burdens, improving safety and providing valuable data to optimise overall fleet management practices.

Harness fleet asset data for efficiency, cost control, and safety with Geotab’s unrivalled fleet management solution

From in-vehicles coaching to advanced collision prevention, we have a comprehensive ecosystem of driver safety solutions to manage any heavy truck fleet in the country.

One platform for optimal fleet performance powered by AI and data intelligence. Unlock actionable insights and recommendations to boost fleet efficiency, compliance, safety, and sustainability.

4 million+

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Our pillars of innovation: data points processed daily v globally connected ehicles

Productivity

Track, route and dispatch drivers to ensure a productive fleet

Optimisation

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Drive efficiency & cost savings in fuel efficiency and planned fleet maintenance

Safety

Analyse and encourage safe driver behaviour with reports and in-vehicle coaching

Sustainability

Reduce fuel consumption and carbon emissions, or integrate EVs and electrify your fleet

Compliance

Comply with regulations likes Australia Standard HoS rules and be audit-ready for safety reviews

Expandability

Our open platform lets you integrate hardware or software options to drive performance

Go further with Geotab: geotab.com/au

reducing environmental impact are also expected to provide other benefits such as reduced maintenance and greater permitted operating hours – currently restricted in some areas due to noise.

In March 2024, the Queensland government formalised a long-awaited change to maximum axle weight limits, allowing heavy vehicles to operate with a steer axle weight of up to eight tonnes (t) on selected roads in the southeast of the state.

The announcement puts Queensland on the map as a leader in future electric truck manufacturing, and ZEHVs will make a significant contribution to the state’s own emissions reduction targets.

The change means Queensland has become the fourth state to allow heavy-duty electric trucks on its roads. It follows trials of higher mass limits for ZEHVs in New South Wales and South Australia, as well as the granting of a three-year permit to Volvo for the operation of a battery electric prime mover and semi-trailer combination on a network of state-owned roads.

Despite these promising reforms in individual states, the ongoing contribution of the heavy vehicle industry to Australia’s economy and emissions reduction targets remains at stake, and there is a need for the federal government to accelerate truck axle mass regulatory reforms at all levels.

The nation has everything it needs to meet emissions reduction targets, creating more local jobs and additional investment opportunities in the process.

The only missing piece of the puzzle is the regulatory framework to support the heavy vehicle industry, which seeks to transition to ZEHVs using technology that is currently available.

The process of changing some areas of heavy vehicle regulation, including mass and dimension requirements, demands careful analysis and requires time and attention.

To address this, a ‘maturity model’ is applied by regulators which uses the full range of tools available to support the industry, while the process of making regulatory change is followed.

LIFE-SAVING INNOVATIONS

As well as regulatory reform, there is a significant focus on innovations, several of which have more than proven to save time, money, and most importantly, lives.

Sophisticated fleet management systems (FMS), for example, allow information associated with heavy vehicles and other related assets to be visualised, monitored, and managed.

More businesses have turned to FMS as technology has advanced, as they provide numerous benefits such as complete visibility across operations, streamlined day-to-day tasks, improved maintenance planning, and the identification of deeper issues that impact fleet and business performance, to name a few.

Fleet management has transformed as the evidently positive impacts an efficient fleet can have on key variables such as people, vehicles, and operations are realised by adopters of the technology.

Cost savings are widely agreed to be the key driver behind developing a fully functioning FMS, which can also include the management of drivers, the environment, and compliance.

The latter is just as important and a fundamental necessity for safe and successful fleets, most of which have the same issues to address in terms of compliance.

40 | Supply Chain Outlook Issue 1
Brisbane Truck Show

For example, vehicles must be safe, maintained, and properly equipped for the nature of their use to ensure roadworthiness, as well as being suitably taxed and insured. This requires a robust service and maintenance system, regular internal inspection policies, and the strict management of warranties and policies.

Risk assessments, meanwhile, involve considering the risks of routes that drivers are asked to travel, operations they need to undertake, and compliance with safe and legal driving times.

Drivers also require licences that are up to date and comply with the vehicle they are at the wheel of. From a health and safety point of view, they additionally need to drive and conduct themselves appropriately on the road.

Ultimately, however, employers are responsible for the health and safety of their drivers. Whilst this involves many of the aforementioned issues, it is a fundamental starting point when maintaining compliance as part of FMS.

In most cases, this involves investing in software and establishing a database that collates all-important compliance factors, such as key dates, requirements, and criteria, and can trigger action through notifications and alerts.

Fleet compliance is ultimately a continuous process that demands visibility, organisation, and consistent policies to avoid fines, penalties, safety violations, excessive admin costs, and significant delays or disruption.

SAFETY STANDARDS

In-vehicle monitoring systems (IVMS) are another innovation that is considered integral to achieving effective and successful fleet management.

IVMS consists of electronic devices installed in a vehicle to monitor driver activities and identify potentially dangerous behaviours, such as excessive speed, harsh braking, and rapid acceleration.

In response, these sophisticated systems can provide warnings and evidence of a wide range of undesirable driving practices. Other behaviours that are monitored include tailgating, rough cornering, and driver drowsiness.

The technology is therefore crucial to the monitoring, maintenance, and improvement of road and driver safety standards in heavy vehicles, which pose significant risks to public safety due to their sheer size and weight as minor errors can have more serious consequences compared to light vehicles.

HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT Supply Chain Outlook Issue 1 | 41

PIONEERING ENGINEERING AND MANUFACTURING EXCELLENCE.

With a legacy rooted in a commitment to excellence, innovation, and customer satisfaction, Krueger Transport Equipment has spent the last 45 years making Industry Awarded Semi-Trailers that are built for the Australian Industry and Environment.

Australia’s transportation industry asserts its dominance by moving more tonnes per kilometre (t/km) than its global competitors annually. In recent years, the sector has witnessed a surge in performance-based standards (PBS) adoption and the integration of electric vehicles (EVs) and hydrogen technologies as part of its ongoing expansion.

Kevin Dennis, CEO of Krueger Transport Equipment (Krueger), acknowledges, “Australia’s transport industry has a legacy of pushing boundaries, making it the most respected, productive, and efficient transportation landscape worldwide.”

As Krueger, a pioneer in innovative semi-trailer design, gears up for its 46th year in business, it remains committed to the foundational principles that have defined its brand. “2024 promises to be another dynamic year for Krueger as we continue to enhance our products,” Dennis affirms. “This commitment stems from decades of engineering expertise and a relentless pursuit of excellence that defines the Krueger trailer.

“In the product realm, we are poised to ramp up production of our newly introduced K-Van range (Dry van) by year-end, following successful pilot runs with key clients. This expansion into a new market

segment solidifies our position as a major player through broadening our product portfolio.”

Furthermore, strategic investments in cutting-edge technologies, such as a laser cutting facility, has revolutionised Krueger’s manufacturing processes. “By the conclusion of 2023 and into early 2024, we are already reaping significant benefits and efficiencies from these investments,” notes Dennis. “Our newly implemented laser cutting machine and facility has notably enhanced quality and time efficiency, translating into improved manufacturing standards and reduced production times. This ultimately results in delivering more high-quality Krueger trailers to the market.”

ENGINEERED TO LAST.

Hearing from John Krueger, Founder of Krueger Transport, and Adis Selmic, Manager - Projects & Production Engineering, they shed light into the past, present and future of the core of Krueger’s business, engineering and design.

When you first started Krueger, what was your intention in building semi-trailers?

John Krueger, Founder (JK): It all started 48 years ago at the kitchen table when I conceptualised my first design. I’d been a truck driver for many years and driven Skeletal Trailers. During this time, I’d encountered numerous safety challenges and operational difficulties with various trailer brands, notably the dangers and weekly accidents and incidents you would hear about posed by poorly designed 20-foot container skeletal trailers.

The first trailer I built was for my own use as an owner-driver, which took me six to nine months to construct in my own driveway and my intention was to increase my rig’s capacity from carrying one 20-foot (ft) container to two, doubling my trip’s efficiency.

A crucial aspect of the trailer design was to stop the issues around manoeuvrability under load, which caused dangerous and sometimes fatal incidents on

the roads, as well as a safe and efficient decoupling of the trailer from the truck at the dock point, which in those days had huge issues with trailers sinking on poor footed ground or diving headfirst as the weight was not evenly spread lifting the rear of the trailer and trapping workers or forklifts and destroying cargo. It was a huge amount of work, but ultimately it was a huge success, literally. This catalysed a change in the industry, and we began Krueger Transport Equipment. My journey as an owner-driver gave me such an understanding of the complexities in trailer design, safety aspects and maximising productivity. When we first started producing trailers as Krueger Transport Equipment, for the first 10 years, I spent more time in the field analysing our product to keep innovating. Our designs where not without their critics, as industry and competitors spent years disparaging the designs. Then years later they eventually copied my designs, as customers became more and more frustrated with outdated ideas and continual issues and incidents from their products.

Today, Krueger stands as a pioneer in establishing fresh industry benchmarks within Australia. This distinction is attributed to our pioneering role in

solving the problems of the industry and innovating and executing various aspects and elements of trailer design. This also meant consistent recognition through multiple industry accolades.

Our commitment to innovation is underscored by the number of successful patents we have all designed to address safety in load cartage and restraint issues as well as occupational health and safety.

How has the company’s engineering and design process evolved over the last 45 years?

JK: I don’t think much has changed outside of the use of technology and changes to transport regulations. The innovation hasn’t stopped. Since its inception, Krueger has prioritised R&D, laying the groundwork for our stringent policies and procedures. By adhering to rigorous standards, we ensure that only the highest quality materials are used in the manufacturing of our trailers and that we stay up to date with the latest trends, techniques, and processes to ensure the safety and well-being of our customers.

I still am heavily involved in the engineering process and the conceptualisation of answers to customers problems and feedback. Over the

years, our engineering team’s dedication to quality remains unwavering. It’s what has and continues to distinguish us in the industry and has made Krueger synonymous with excellence. Whether it’s engineering, manufacturing, design, or delivery – innovation and quality are at the forefront of everything we manufacture.

From an engineering and manufacturing perspective, what differentiates Krueger from the competition?

Adis Selmic, Manager of Products and Production Engineering: Before my time at Krueger, John Krueger was extremely hands on in creating the strategy and

procedures within the engineering department, and these are the core values that my team and I work by today.

What sets Krueger apart from the competition is our unwavering commitment to excellence and innovation, regardless of the design’s complexity. Our engineering team works tirelessly on new ideas and continuous improvements, ensuring that each trailer we produce is of the highest quality and safety.

ENGINEERED FOR AUSTRALIAN CONDITIONS.

PROUD MEMBER
03 8331 6100
corporate@krueger.com.au KRUEGER.COM.AU

HEAVY VEHICLE INDUSTRY AUSTRALIA

Vehicle operators and other road users have an increased chance of detecting, avoiding, and surviving crashes thanks to advanced safety technologies, which will continue to be developed in the short-to-medium term and must be monitored by transport regulators.

As well as fleet management, compliance, monitoring, and safety systems, electronic work diaries (EWDs) are another innovation that is used to record the work and rest times of heavy vehicle drivers.

EWDs are approved by Australia’s National Heavy Vehicle Regulator (NHVR), whose vision is to cultivate a safe, efficient, and productive heavy vehicle industry that serves the needs of the country.

The devices can be used as an alternative to keeping records in a written work diary. Drivers, transport operators, record keepers, and authorised officers still have the same obligations as they do for a written work diary when they are using EWDs, however they can automate many of these functions, making day-to-day operations faster and easier.

Transport operators have the option to either develop their own device, buy one off-the-shelf, or adopt an EWD that can be integrated with other regulatory systems.

In any case, the technology must meet specified performance requirements to be approved for operation, whilst appropriate training is needed for transport operators as well as drivers to inform them of the correct use of their EWD.

At all times, EWD approval holders, record keepers, and drivers must ensure that the devices function in accordance with the standards and conditions set by NHVR.

Information collected by an EWD can be provided to numerous recipients, such as the driver to check that the record information is correct, the driver’s record keeper to fulfil record-keeping obligations, and an authorised officer to confirm the driver is complying with work and rest regulations.

In addition to the general duty to not drive a heavy vehicle whilst fatigued, drivers must comply with certain maximum work and minimum rest limits.

Parties in the supply chain have to undertake reasonably practicable measures to prevent drivers from exceeding these limits, similar to occupational health and safety laws.

This means that heavy vehicle drivers must be allowed to stop if they are at risk of exceeding the specified limits and make alternative arrangements.

AUTOMATION PROGRESS

The development of automation is also well underway, as evidenced by the work of the likes of Tesla, General Motors (GM), Google, and more in the light vehicle industry.

Despite the notable progress made in the light vehicles space, the application of automation in heavy vehicles is still in its infancy.

However, many of the systems required to automate heavy vehicles will derive from the developments in light vehicles, as well as the maturation of advanced driver assistance systems (ADAS).

ADAS for heavy vehicles primarily aims to help drivers avoid accidents or mitigate unavoidable collisions.

Such features include lane-keeping assist, which sends a signal to the driver when they have started to veer into

SPOTLIGHT
INDUSTRY

another lane. Blind spot monitoring likewise sounds an alert when the driver signals to change lanes with another vehicle in a blind spot alongside.

Adaptive cruise control is another ADAS feature that not only sets heavy vehicles to travel at a selected speed, but also detects and reacts to traffic pattern changes. Other ADAS technologies include rear crosstraffic monitoring, pedestrian detection, and accident avoidance.

In the past decade, ADAS in heavy vehicles has grown rapidly and continues to advance as more drivers rely on the systems to stay safe and achieve a new level of convenience.

However, ADAS is merely intended to support the driver, require constant human oversight, and does not make the vehicle completely ‘automated’ in and of itself. Rather, when these features are engaged, the driver ultimately remains responsible and must intervene if required to maintain safety.

In 2023, the National Transport Commission (NTC), which leads national land transport reform in support of all Australian governments to improve safety, productivity, environmental outcomes, and regulatory efficiency, published the third edition of its Guidelines for Trials of Automated Vehicles in Australia.

In the time since the first edition was published in 2017, automated vehicle trials have been conducted in every state and territory, with thousands of Australians experiencing the technology for themselves as a result.

As fully automated vehicles still cannot legally operate on public Australian roads due to existing legal barriers, organisations seeking to run trials require permits or exemptions from state and territory road transport agencies to do so.

Unlike light vehicles, which are regulated on a state-bystate basis, heavy vehicles are regulated under the Heavy

Vehicle National Law (HVNL), which is administered by NHVR. The Northern Territory and Western Australia do not currently apply HVNL, however, instead maintaining their own heavy vehicle regulations.

Innovations such as automated vehicles, ADAS, EWDs, FMS, and more, demonstrate the increasing pace of technological change within the sector.

Despite the abundant opportunities presented by new technologies, they also present substantial challenges to industry and regulators.

The inclusion of advanced systems such as EWDs, as well as other factors such as increasing automation and a shift towards reducing emissions, is driving a period of rapid change in the industry globally that will fundamentally alter heavy vehicles.

The likelihood is that heavy vehicles of the future will therefore look and operate very differently to those that have been used for some time in the industry.

Although Australia maintains a notable heavy vehicle manufacturing capability, the changes seen in global markets will naturally be reflected in the country. Indeed, whilst NHVR regulations reflect the unique nature of the local heavy vehicle industry to a certain degree, Australia is heavily influenced by global developments.

Local transport regulations are regularly updated to reflect these global developments.

For example, major changes loom for transport operators who rely on telematics devices for access or productivity benefits as they will need to upgrade their 3G devices to remain legally compliant.

Operators whose devices are not 4G compliant have been advised to speak with their application service provider about upgrading their fleet.

At the same time, both Queensland and New South Wales will enact changes to their telematics requirements from 1st June 2024.

Supply Chain Outlook Issue 1 | 47

Trailers and Low Loaders

STRENGTH IN DESIGN

As a division of The Davey Group, Rhino Trailers and Low Loaders designs and manufactures quality custom-built heavy haulage road transport equipment tailored for the Australian market. The Australian-owned and operated company, based in Toowoomba, Queensland, has a longstanding reputation for producing a diverse range of quality trailers and low loaders, known for their superior strength, thus reinforcing its motto ‘Strength in Design’.

THE RHINO RANGE

Rhino has a built many special purpose trailers for specific tasks over the years, particularly for the bulk transport, heavy haulage, general freight, intermodal, and livestock industries. The extensive tipper range includes high-tensile, light-weight steel and aluminium trailers, including hybrid models. These are available in high-volume single, B-double, road-train and PBS configurations. Drop-bed bulk tubs, made in aluminium and high-tensile light-weight steel, work well with light weight and high-volume products. Its range of Rhino (formally Lusty) low loaders covers deck wideners and full wideners on rows of four tyres as well as widening rows of eight low loaders with the accompanying rows of four and rows of eight dollies.

Rhino also manufactures tandem and triaxle converter dollies for tipper, drop deck, and skel

trailer road-train and A-Double combinations and tandem and triaxle tag trailers for plant and equipment. All are designed and constructed to handle the tough Australian conditions.

Recently added to the range is a newly developed drop deck machinery trailer that widens to 3.5 metres (m), with options to widen to 4.0m Rhino’s machinery trailers are bred from a combination of their proven drop deck trailer construction and their ever-reliable low-loader deck widening system, resulting in a market-leading solution for operators looking for a drop deck trailer that does it all.

KNOWLEDGE AND EXPERIENCE

The range has progressed during Rhino’s 30-year history, aided by the combined knowledge and expertise of companies Lusty Low Loader and AFM-O’Phee Trailers, which were purchased and consolidated into the Rhino brand by the parent company.

The company’s 40,000-square-metre (sqm) factory at Toowoomba is a one-stop outlet for all trailer requirements, featuring a comprehensive offering under one roof, including a protective coatings facility and facilities for servicing, modifications, and refurbishments.

With a team of over 200 highly skilled tradespeople and design engineers, the quality of the trailers is ensured, always at the forefront

and never compromised. Aside from its Integrated Management System (IMS) commitment, the technicians have always been striving for continual improvement, reviewing existing designs and manufacturing methods to allow existing and new customers to find the right match for their business, depending on their evolving needs and growth.

The Rhino team also focuses on reducing lead times through improved manufacturing processes.

CAPABILITIES AND FACILITIES

The capabilities of The Davey Group are not limited to road transport, with its divisions offering standard engineered products and design and construct capabilities servicing the mining, oil and gas, agriculture, and forestry sectors. The company specialises in delivering complete turnkey solutions, including large, complex industrial equipment, storage solutions, bulk materials handling, processing plants, structural steel buildings, and supporting plant infrastructure.

Its Toowoomba site also features a modern 1,500sqm abrasive blasting and protective coatings facility with a 23m x 6.2m x 6.2m environmentally

friendly abrasive blast chamber capable of using all types of material for surface preparation. The 13m wide x 42m long booth is suitable for all large equipment and machinery with industrial finishes, and a 24m long heated spray booth offers greater flexibility in applying quality coatings to commercial and industrial machinery and equipment to exact Australian Standards and International specifications.

The Davey Group’s Managing Director, Tony Davey, is particularly proud of this capability and noted that the protective coating division will underwrite delivery commitments on finished products –something it has successfully been doing since it was established.

As a result, this state-of-the-art facility is where Rhino gets its trailers painted, unifying two divisions of The Davey Group to deliver unbeatable products in quality, design, and construction.

QUALITY AND ISO CERTIFICATION

To further bolster its quality benchmark three years ago, the Group committed to developing and implementing an IMS to achieve certification in ISO 9001:2015 Quality Management Systems (QMSs), ISO 45001:2018 Safety Management Systems (SMSs), and ISO 14001:2015 Environmental Management Systems (EMSs).

A solid quality management system behind the doors means customers can count on improved standards and controls, performance, reliability, and overall quality of the products.

The Rhino team ensures complete customer satisfaction by following a steadfast quality policy that includes accurately capturing customer specifications; implementing, maintaining, and continually improving a third-party certified ISO 9001:2015 QMS; conducting in-process and final quality and test inspections; and adhering to all applicable statutory or regulatory requirements and internal processes.

Rhino Trailers and Low Loaders Phone: 1300 4 RHINO www.rhinotrailers.com.au STRENGTH IN DESIGN Trailers and Low Loaders

HEAVY VEHICLE INDUSTRY AUSTRALIA INTERVIEW:

Todd Hacking, CEO of Heavy Vehicle Industry Australia (HVIA), discusses representing and advancing the interests of manufacturers and suppliers of heavy vehicles and their components, equipment, and technology

Membership of HVIA includes almost every major truck manufacturer and importer, most of Australia’s major trailer manufacturers, and an ever-growing list of their suppliers and distributors.

HVIA’s 300+ members reap the rewards through lowcost membership, opportunities to engage and contribute to industry policy development, and regular networking events and information forums across the country.

Members also benefit from advocacy to government and its regulatory agencies on national, regional, and local issues, technical and regulatory support, and world-class national events including the Brisbane Truck Show.

Committed to providing leading advice and assistance, whilst directing and influencing policy at all levels of government, HVIA delivers the best possible outcomes for members, the wider industry, and the community.

HVIA – AT A GLANCE

PURPOSE – To represent and advance the interests of the entire heavy vehicle industry.

MISSION – To advocate for a successful and sustainable heavy vehicle industry with a strong, unified voice.

VISION – An innovative and prosperous heavy vehicle industry, supporting the safest and most productive fleets.

52 | Supply Chain Outlook Issue 1
Pictured centre: Todd Hacking, CEO of Heavy Vehicle Industry Australia

Supply Chain Outlook (SC): Firstly, could you talk us through the origins, mission, and vision of HVIA?

Todd Hacking, CEO (TH): HVIA – then known as the Commercial Vehicle Industry Association of Queensland (CVIAQ) – began life in Queensland in 1968, initially to operate the Brisbane Truck Show, which was first held at Haulmark Trailers’ headquarters in Rocklea, Brisbane, featuring 21 transport industry exhibitors.

It was subsequently incorporated as a company in 1970 to represent and provide services for the Queensland heavy vehicle sector.

In 2015, CVIAQ became HVIA, with a purpose to represent and advance the interests of the nation’s entire heavy vehicle industry.

HVIA’s mission is to advocate for a successful and sustainable heavy vehicle industry with a strong, unified voice, while its vision is to promote an innovative and prosperous heavy vehicle industry, supporting the safest and most productive fleet.

To deliver on its mission and vision, the member-based organisation focuses on four key work programmes:

Advocacy: HVIA is committed to providing leading advice and assistance to its members and directing and influencing policy at all levels of government with a commitment to delivering the best possible outcomes for its members, the wider industry, and the community.

Member services: HVIA’s cost-effective membership includes a range of services, including:

• TechAssist – Technical and regulatory support.

• EmployerAssist – HR fact sheets, updates, and an industrial relations (IR) hotline.

• Jobs Hub – Promoting the industry’s diverse career paths.

• Training and education – Regular online and practical face-to-face courses.

Workforce developments: HVIA is committed to promoting the development of the industry through securing a highly skilled workforce to ensure viability and capacity to deliver innovation.

It does this through a variety of initiatives aimed at addressing the quality and relevance of apprenticeships and traineeships, delivery standards, and career promotion, including the National Apprentice Challenge, the National Apprentice of the Year Awards, and Schools to Industry Tours.

HVIA continues to promote careers in the industry through its highly successful Schools to Industry Tours, which are organised in conjunction with an ever-increasing network of secondary schools.

The tours provide students with a means to explore all the potential career options within the heavy vehicle industry and enable them to make informed decisions about their future careers.

National events: HVIA stages a number of world-class national events to provide a platform for its members and customers to come together, share ideas, discuss challenges, and showcase innovative ways to tackle them.

These include:

• The Brisbane Truck Show – The southern hemisphere’s largest road transport event.

• TruckShowX – Australia’s largest road transport decarbonisation event.

• HVIA National Awards – An annual gala dinner that presents a suite of leadership and innovation awards, acknowledging and celebrating the Australian heavy vehicle industry’s capacity to provide cutting-edge solutions for the road transport task.

• HVIA Executive Club – An exclusive quarterly event designed for industry leaders to convene on a regular basis to share knowledge and discuss common issues with their peers across the heavy vehicle industry.

• HVIA Member Forums - A regular interactive forum to inform members on current and emerging issues and opportunities, tap into the views of our membership, and provide an opportunity for members to get together with their peers.

• HVIA Connect – A new casual peer-to-peer networking event aimed at creating connections in an informative way.

HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT Supply Chain Outlook Issue 1 | 53
HVIA Executive Club

Holmwood Highgate

Holmwood Highgate is a leading manufacturer of bulk liquid storage and transportation systems. With nearly eight decades of industry experience—the longest in Australia—we have built our reputation on a steadfast commitment to quality and reliability. As a second and third-generation family-owned and -operated business, we pride ourselves on our heritage and commitment to excellence. Our production facilities in Queensland and Victoria are staffed by a team of 250 skilled professionals dedicated to serving customers across Australia. Our workshop, certified by ISO, ensures the highest standards of quality are consistently met.

Trust in Our Quality and Reliability: It’s in Our DNA

AVIATION AND DEFENCE SECTORS

We distribute our aviation tankers worldwide, and our military-grade refuelling systems have garnered international interest. Distinguished clients include the Australian Defence Force, New Zealand Defence Force, Taiwan International Airport, and numerous domestic airports. In the military sector, Holmwood Engineering specialises in bespoke, military-grade solutions for fuel and water modules, earning us the prestigious

Land121 phases 3b and 5b military contracts.

Our collaborations with industry leaders such as Rheinmetall-MAN Military Vehicles Australia and Navistar PROnal underscore our commitment to excellence. Designed for a variety of operations, our military tankers and modules excel in forward deployment, critical missions, disaster relief, peacekeeping, and humanitarian missions. Adhering to 20-foot ISO container dimensions, they are easily transportable by road, rail, air, and sea.

INNOVATION AND PRODUCT EXPANSION

Our facility features one of the largest laser cutters in the Southern Hemisphere, enhancing our in-house capabilities and reducing wait times in fabrication. Furthermore, our commitment to sustainability is demonstrated through our recent solar system installation, which not only reduces our carbon footprint but also contributes to a cleaner, more sustainable future.

Hockney and Co., a venture owned by

Holmwood Highgate, offers an imported range of tankers, competitively priced and designed in Australia. Through our partnership with Giesse Cisterne, we provide custom-built pneumatic dry bulk tankers, ideal for transporting a variety of dry goods in both tipping and non-tipping configurations.

OUR COMPREHENSIVE RANGE

From 200-litre fuel tanks for your prime mover to multi-trailer Road Train

combinations, our fuel tanker configurations cater to every need. Our bitumen tankers, available as dog trailers in twin, tri, or quad axle configurations, showcase our versatility. Additionally, we specialise in producing mobile Aviation Refuellers, tailored to suit specific requirements.

For those interested in alternatives to petroleum-based products, we also produce chemical, tallow, and water tankers, as well as

Ammonium Nitrate Emulsion (ANE) tankers, engineered and built in Australia for the mining industry. Under the Narwhal brand, we offer mining service units ranging from 10,000 litres to over 70,000 litres, equipped to service mining equipment with all necessary fluids.

CHOOSE HOLMWOOD HIGHGATE

Our products are designed to meet the

rigorous demands of Australian conditions across diverse industries. With a focus on quality, compliance, and trust, we offer both Australian-made and imported products to efficiently meet your needs at competitive prices.

Opting for Holmwood Highgate means choosing unparalleled quality that stands the test of time.

WWW.HOLMWOODHIGHGATE.COM.AU

TRUCKSHOWX

In response to the huge level of interest shown in the emerging technologies featured at the 2023 Brisbane Truck Show, from productionready vehicles powered by renewable diesel and batteries to hydrogen fuel cell prototypes, HVIA is staging an exciting new multi-day event in 2024 – TruckShowX.

To be held at the Royal Automobile Club of Victoria’s Cape Schanck Resort on Victoria’s beautiful Mornington Peninsula on 13th and 14th May, the two-day event will deliver expert advice and insights on the steps required to implement the ecosystem necessary to support the move to low and zero-emissions transport.

TruckShowX will feature keynote presentations from global leaders in ZEHV adoption, supported by practical case studies of local operators leading the decarbonisation effort.

There will also be a unique expo showcasing the latest low and zero-emission vehicles and related technologies, and a drive-day opportunity to get behind the wheel of these vehicles.

SC: What is your current take on the industry, and what makes Australia a world leader in many aspects of heavy vehicle transport?

TH: Road transport plays a critically important role in the Australian economy. The freight and logistics sector represents an estimated 8.6 percent of Australia’s GDP

and provides critical economy-wide linkages, especially for the construction, manufacturing, mining, hospitality, retail, and wholesale sectors.

The industry directly employs 70,000+ people and its fleet of approximately 600,000 registered trucks (500,000 rigid and 100,000 articulated vehicles) travel an estimated 250 billion tonne kilometres (btkm) per year – a figure that is forecast to grow to circa 400 btkm by 2050.

The critical role road transport plays in moving goods across Australia’s vast distances has underpinned an incredibly dynamic and innovative approach to the task, with the country recognised as a world leader in the development of higher-productivity truck and trailer combinations that can transport more freight with fewer truck movements, resulting in reduced fuel consumption, lower emissions, and better safety.

SC: What substantial challenges does the increasing pace of technological change present to the industry and regulators?

TH: Road transport is one of the most heavily regulated industries in Australia and operates within a very complex regulatory environment.

Additionally, there are major regulatory stakeholders at every level – state, federal, and local, each covering facets of transport operations such as access, weights and dimensions, licensing, safety, and other operational matters such as driving hours and speed.

In this environment, regulatory change does not keep pace with technology and innovation. This often leaves the industry unable to capitalise on opportunities to improve safety, productivity, and environmental outcomes.

58 | Supply Chain Outlook Issue 1
Brisbane Truck Show
“HVIA’S MISSION IS TO ADVOCATE FOR A SUCCESSFUL AND SUSTAINABLE HEAVY VEHICLE INDUSTRY WITH A STRONG, UNIFIED VOICE”
– TODD HACKING, CEO, HEAVY VEHICLE INDUSTRY AUSTRALIA

The next-generation of low and zero-emissions heavy vehicles are a good example – some may not be able to be registered and operated in Australia without increases to steer and drive axle mass limits.

SC: Equally, how significant is the focus on innovation and regulatory reform to support the performance of the Australian economy into the future?

TH: Without a doubt, the biggest regulatory issue facing the industry currently is the lack of a truly national regulatory framework. HVNL is not recognised by every state and territory, which creates unnecessary duplication amongst regulators, and complicates operations for industry, for no benefit at all.

Furthermore, amongst those states that do recognise HVNL, there is disagreement on basic matters such as vehicle and axle configuration, and maximum axle mass limits, which leads to inconsistencies across state borders. These matters unnecessarily restrict progress, and act as roadblocks towards innovation.

The industry urgently needs nationally harmonised regulations that both encourage and foster improvements at all levels.

SC: How does HVIA represent and advance the interests of manufacturers and suppliers of heavy vehicles and their components, equipment, and technology?

TH: HVIA represents and advances the interests of the entire industry involved in design, manufacture, importation, distribution, modification, certification, sale, service, and repair of on-road vehicles with gross vehicle mass or aggregate trailer mass over 3.5 t and their components, equipment, and technology.

Our members include every truck OEM, 49 of the top 50 trailer manufacturers, and every major component supplier, as well as heavy vehicle dealers, technology, equipment and component suppliers, segments of the repair and maintenance industry, and the engineers and consultants that support each of the above businesses.

HVIA seeks to promote an innovative and prosperous industry that supports a safe and productive heavy vehicle fleet operating for the benefit of all Australians by:

• Holding major industry events including Brisbane Truck Show, Australian Heavy Vehicle Industry Week, South Bank Truck Festival, and TruckShowX.

• Ensuring members are well-informed with a weekly newsletter (4,500+ subscribers) and quarterly ROADBOSS magazine (distribution of 12,000+).

• Recognising industry excellence through our annual awards night, including Apprentice of the Year.

• Establishing working groups to address prominent issues.

• Collaborating with other peak industry bodies to ensure a unified voice.

• Understanding industry’s views through state committees, industry forums, and regular contact.

• Advocating to government on behalf of industry.

• Encouraging people to participate in the industry.

• Supporting mental health with Healthy Heads in Trucks and Sheds.

HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT Supply Chain Outlook Issue 1 | 59

TAKE CONTROL OF YOUR

TRANSPORTATION NEEDS WITH SINOTRUK

Sinotruk Australia is the sole importer and distributor of Sinotruk products in Australia.

Operating a service and dealer base from its Dandenong South headquarters, Sinotruk Australia is able to service the entire Australian market. Development of the Sinotruk brand for Australia started in 2019 to import and distribute a new range of trucks suitable for Australian demands and requirements, and its unique range of conditions.

WHAT WE DO

Sinotruk Australia delivers top performance in every discipline

Company executives are all senior foreign trade sales personnel, rich in professional knowledge and sales experience, familiar with foreign trade process, automobile, engineering machinery and accessories, etc.

Credibility is the company’s first tenet. We refuse to cheat or hide, and we guarantee to satisfy every customer.

PROFESSIONAL INTEGRITY QUALITY

The company ensures quality and has strict quality controls in the procurement process.

TO THE WORLD

Heavy Duty Truck specialises in the automobile, engineering machinery and accessories import and export business.

sinotruk.com.au

SC: How committed is HVIA to providing leading advice and assistance to members, and directing and influencing policy at all levels of government?

TH: HVIA is extremely committed to both providing advice, assistance, and support to members, as well as directing and influencing government policy at all levels.

The heavy vehicle industry is extremely intertwined, and to some degree, over-regulated. As such, ensuring HVIA members’ voices are heard by the right decision makers at the right time is just as important as the content of what is being said.

HVIA already has an incredible reputation as an association that is well in-tune with the views of its members and can identify where it is lacking. We also have a rigorous and fair process for establishing a policy position, which is informed and based on strong, reliable evidence.

We say what we mean, and we mean what we say, whilst having the evidence to back it up - which often ensures that when we speak, we are not only heard but listened to.

This is an immensely powerful position, but it is one that cannot be taken for granted. You only get one reputation and what can take a lifetime to create can be ruined in a

split second, so it is really important that HVIA’s legacy remains in place, and that the long-established systems and processes which has enabled the association to achieve a strong reputation are never compromised.

SC: How do you see the heavy vehicle industry in Australia developing over the next five years?

TH: HVIA is in an enviable position, due to its 55-year history, stable and loyal membership, and being respected by government and regulators at all levels for providing measured, considered, informed, and accurate advice.

The next five years present amazing opportunities as the HVIA restructure takes shape and we invest further in the association’s resources and capabilities. As we do so, every single decision is run through the lens of “will this make the industry better?” or “will this create value for our members?”.

There is a huge and exciting journey of decarbonisation ahead which, whilst only just beginning in the commercial realm, is extremely busy in ensuring accurate advice off the back of informed analysis and evidence-based decisions are made in the interest of establishing the regulatory environment for investment.

HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT 64 | Supply Chain Outlook Issue 1
“HVIA STAGES A NUMBER OF WORLD-CLASS NATIONAL EVENTS TO PROVIDE A PLATFORM FOR ITS MEMBERS AND CUSTOMERS TO COME TOGETHER, SHARE IDEAS, DISCUSS CHALLENGES, AND SHOWCASE INNOVATIVE WAYS TO TACKLE THEM”
– TODD HACKING, CEO, HEAVY VEHICLE INDUSTRY AUSTRALIA
Supply Chain Outlook Issue 1 | 65
“THE NEXT FIVE YEARS PRESENTS AMAZING OPPORTUNITIES AS THE HVIA RESTRUCTURE TAKES SHAPE AND WE INVEST FURTHER IN THE ASSOCIATION’S RESOURCES AND CAPABILITIES”
– TODD HACKING, CEO, HEAVY VEHICLE INDUSTRY AUSTRALIA

This is not just a truck issue; there is an ecosystem of stakeholders – some of whom are transacting for the first time, and HVIA will play a role in ensuring the right environment exists to guarantee that the entire industry can thrive. This must be done in a considered and respectful way to ensure the association does not tread into the commercial sphere, which rightly belongs to the individual members and their suppliers.

HVIA will also need to be at the forefront of how this impacts issues like safety and skills development, which we have a goal to lead. Our vision is for a standalone automotive skills academy to grow a pipeline of the nextgeneration workforce.

HVIA has also long held the belief that the transport association landscape is cluttered and confusing, and that rationalisation would certainly simplify and improve industry outcomes. HVIA is keen to ensure that we are speaking with one unified voice or acting as collaboratively as possible so that the heavy vehicle supply chain

(downstream) and the freight task (upstream) are as safe and efficient as possible.

SC: Finally, what are HVIA’s key priorities to continue representing and advancing the interests of manufacturers and suppliers?

TH: The industry faces considerable headwinds – most notably with projected growth in the freight task, ongoing global supply chain sensitivities, skills and labour shortages, inflationary pressures, and the need to decarbonise and transition to net zero.

The heavy vehicle industry is among the few remaining local manufacturing industries. A diversity of skills – as well as government support to facilitate innovation – are needed for the sector to thrive.

Our members are always innovating and improving the safety of their fleets and require flexible and responsive regulations to allow that innovation.

66 | Supply Chain Outlook Issue 1 HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT

BUILT TO LAST

Australian owned certified - #08186

Established in 1958 by Angelo Borg and Paul Muscat, Borcat Trailers (Borcat), offers lightweight, strong, and reliable products to our vast and loyal customer base, many of whom operate out of New South Wales (NSW).

Having sold the business in 2008, Borg has since passed, and, under new ownership, we have developed and expanded our product range.

Since Borcat’s inception, PBS vehicle combinations have been our staple, and PBS continues to make up 99 percent of our builds today.

The units we manufacture from our factory in Wetherill Park, Sydney, are made by a skilled team of highly trained tradespeople and apprentices. 2024 has seen Borcat take on the NSW Sales and Service Agency for Haulmark Gincor, whilst our provision of Gincor Werx Live Bottom trailer equipment sets us apart from the competition.

Many of our customers require additional options when it comes to trailer tippers for asphalt unloading. Borcat’s partnership with Haulmark / Gincor allows us

to offer horizontal uploading as an option to our NSW customer base, in both sales and service. At Borcat, we pride ourselves on our ability to adapt to industry changes. Borcat strives to offer customers a viable option for all their needs. As a family owned and operated company, we offer one-onone services to ensure that each customer receives what they require.

From tippers, to live bottom trailers, and other types of trailers, Borcat has a solution for all your trailer requirements.

Instagram - borcattrailers | www.borcat.com.au

We support the transition to net zero, but seek government assistance in building the value proposition, creating infrastructure, solving access issues, and researching the applicability of different propulsion technologies for various purposes.

We see a leadership role for federal government to harmonise the states, territories, and local government’s regulatory approaches, operating standards, and decarbonisation efforts.

HVIA TRAINING PROGRAMMES

HVIA’s training programmes help people to achieve their full potential in their career, workplace, and in the heavy vehicle industry. Through these programmes, thousands of trainees have sharpened their skills, elevated their knowledge of the heavy vehicle industry, and gained the unique opportunity to positively engage, support, and contribute to the future of Australia.

With three courses on offer, participants can start with the basics or dive straight into technical topics:

• Heavy Vehicles 101 – Explore the world of heavy vehicles with this immersive online course. Obtain a thorough overview of Australia’s heavy vehicle industry, regulations, and diverse range of vehicles. Master essential terminology and concepts tailored for both technical and non-technical roles.

• Load Restraint – Five practical and instructional modules to guide industry professionals on the best way to approach load restraint. Find out about the major considerations in understanding the load, the vehicle, and the equipment. Learn how to choose the right restraint method and calculate the required restraints.

• Tyre Management – Get in-depth instruction on the seven key principles of tyre management. Learn about the importance of pressure, tyre and wheel condition, and balance and alignment. Discover how to set inspection intervals, procedures, responsibilities, training, and equipment.

In this regard, HVIA seeks the following:

Manufacturing sovereignty

• Support via financial and tax incentives.

• Support for advanced manufacturing.

Skills and training

• Modernisation of VET and improved flexibility of the training system.

• Data-backed reports to understand current and future people/skills needs.

• Incentives for people to train in positions with identified shortages.

Higher productivity and efficiency

• Investment in infrastructure, such as battery charging or alternative refuelling stations.

• Cutting wait times for obtaining vehicle access route approval.

• Investment in road networks to improve access for higher-productivity vehicles.

Policy and regulation

• Leadership from the federal government on state/ territory regulatory harmonisation and a heavy vehicle net zero roadmap.

• Net zero transition assistance, such as tax incentives, R&D, trials, grants to invest in net zero vehicles, and priority Performance Based Standards (PBS) approval.

• Removal of barriers for uptake of high-productivity vehicles, such as mass limits.

Facilitating innovation

• Cutting red tape to reduce time to market for new vehicles.

• Streamlining importing procedures.

• Support for local manufacturing to take up new technologies.

Tel: (07) 3376 6266

hvia@hvia.asn.au

hvia.asn.au

68 | Supply Chain Outlook Issue 1 HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT
www.offroadtrucks.com.au (08) 9459 8911 MD 16670 Supply Chain Outlook Issue 1 | 69 HEAVY VEHICLE INDUSTRY AUSTRALIA INDUSTRY SPOTLIGHT

SUPPLY CHAIN OUTLOOK is a quarterly digital publication and media brand showcasing the latest innovations, industry insights and corporate stories from across the international supply chain sector. Its world-class team collaborates with the biggest and most exciting brands to craft engaging and authoritative content for a global audience of industry players.

As supply chain organisations worldwide confront unprecedented change, embracing technological innovations and incorporating critical environmental sustainability agendas, now more than ever is the time to showcase the strides being taken in this dynamic sector.

The expertise of our in-house design and production teams ensures delivery to the highest standards, as we look to promote the latest in engaging news, industry trends and success stories from the length and breadth of the global supply chain sector.

As a multi-channel brand, Supply Chain Outlook reaches an international audience through various platforms, with exclusive content distributed through our website, online magazine, social media channels, and bi-weekly newsletter.

Through this compelling venture, we intend to foreground the movers and shakers of the industry. To participate as a featured company and join us in this exciting endeavour, contact one of our Project Managers or our Managing Director, James Mitchell, today.

Tell us your story and we’ll tell the world PHILIPPINE AIRLINES With a proud heritage, Philippine Airlines continues to forge a path of innovation and customer-centric service with Captain Stanley Ng at the helm; the President and COO discusses plans, pilots, and progress WEERTS GROUP Optimising efficiency with logistical flow DELTA CARGO A vast and reliable global cargo network DHL EXPRESS The undisputed global leader in international express shipping Trendsetters in end-to-end package delivery solutions, we unwrap what makes UPS Canada stand out with President, Stephanie Dexter DIGISTICS / HEAVY VEHICLE INDUSTRY AUSTRALIA www.supplychain-outlook.com ISSUE FREE Marketing Opportunity www.supplychain-outlook.com/work-with-us

PIONEERS OF THE SKIES

With a proud heritage, Philippine Airlines continues to forge a path of innovation and customer-centric service with Captain Stanley Ng at the helm; the President and COO discusses plans, pilots, and progress

Writer: Rachel Carr | Project Manager: Taylor Green
PHILIPPINE AIRLINES ASIA PACIFIC 72 | Supply Chain Outlook Issue 1

SKIES

As an archipelago consisting of 7,641 islands and islets, the Philippines is a Southeast Asian nation located in the west of the Pacific Ocean, off the coast of Vietnam.

Over eight decades ago, it became apparent the country needed air transport not only to facilitate economic growth and development but also to link the chain of subcontinental land to the rest of the world with the fastest mode of connectivity.

As a true industry pioneer and flag carrier, Philippine Airlines (PAL) was the first commercial airline in Asia and is currently the Philippines’ only fullservice network airline.

Now headquartered at the Lucio K. Tan. Jr. Centre in Pasay, PAL is easily

identifiable by its logo, which comprises two red and blue sail triangles with an eight-rayed yellow sunburst.

During the COVID-19 pandemic, PAL flight crew wore unique and functional protective gear specially designed by Filipino couturier Edwin Tan that featured the colours of the airline, which are also a nod the flag of the Philippines.

The company’s origins date back to 1931 when visionary entrepreneur Andres Soriano founded the Philippine Aerial Taxi Company. However, he closed the fledgling aviation firm in 1939 and replaced it with PAL a few years later.

Braving the imminence of war, PAL began with an inaugural flight from Manila to Baguio on March 15th, 1941, carrying only five passengers.

Today, PAL operates a fleet of Boeing, Airbus, and De Havilland aircraft, providing scheduled non-stop

Supply Chain Outlook Issue 1 | 73
Captain Stanley Ng, President and COO

flights from its hubs in Manila, Cebu, Clark, and Davao to 33 other destinations within the Philippines. Additionally, it offers flights to 39 other destinations in Asia, North America, Australia, and the Middle East.

PAL’s network includes islandhopping flights to fabulous beach resort destinations, high-tech hubs, eco-tourism havens, and ultralong-haul transpacific flights linking Southeast Asia to the US mainland – Los Angeles, San Francisco, and JFK Airport in New York, and Canada, namely Vancouver and Toronto.

“We are known for our warm and gracious service anchored in ‘Buong Pusong Alaga’, meaning wholehearted care, which embodies Filipino hospitality at its best,”

“BY HELPING TO ENSURE THAT HIGHLY ESSENTIAL GOODS REACH INTENDED MARKETS, WE KEEP SUPPLY CHAINS MOVING, WHICH HELPS THE ECONOMY”
– CAPTAIN STANLEY NG, PRESIDENT AND COO, PHILIPPINE AIRLINES

explains Captain Stanley Ng, President and COO of PAL.

“PAL takes pride in supporting the global economy by providing air cargo and charter services while also fulfilling the travel needs of overseas Filipinos, businesspeople, tourists, and families from all around the world. We consider it a privilege to have been given this opportunity to serve, and feel honoured to do so,” he continues.

NAVIGATING A CAREER PATH

Captain Ng assumed the role of PAL’s president in 2022 after holding various positions in Flight Operations, including Head of PAL’s Operations Group and Chief Pilot of the Airbus A320 fleet.

Soon after taking up his prestigious post, he became part of a significant, special moment in history. He had the privilege of captaining a flight

74 | Supply Chain Outlook Issue 1 PHILIPPINE AIRLINES ASIA PACIFIC
Captain Stanley Ng, President and COO

A SHORT-HAUL HISTORY OF PAL

1940s – At the dawn of the aviation age, a fledgling airline began its journey just as World War II in the Pacific theatre reached the Philippines. Determined to serve its battered nation, PAL’s fleet joined in the war effort. When it was over, the airline took on the mission of rebuilding the country through a growing network of routes across the islands and beyond.

1950s – As the world was recovering from World War II, Filipino trade grew, and the airline’s network expanded from Manila to as far east as London and as far west as San Francisco, spanning two-thirds of the world.

1960s – PAL joined the age of the jet-powered aircraft and re-established its mission to link the Philippines to the world after the government suspended international flights halfway through the previous decade.

1970s – More routes were introduced to ensure Manila became a crossroads of Asia and a gateway between the East and West. In 1974, a merger made PAL the sole flag carrier of the Philippines, and it acquired its first widebody aircraft, the McDonnell Douglas DC-10.

1980s – The passenger experience was elevated with the introduction of the Boeing 747 for transpacific and European services, and the twinjet Airbus A300 for regional services. The carrier continues to modernise its domestic fleet today with Fokker50s, Shorts SD 360s, and Boeing 737s.

1990s – PAL was returned to private hands, and in its push to modernise, it ordered state-of-the-art aircraft, including Boeing’s longer-range 747-400s and a family of Airbus A330s, A340s, and A320s.

2000s – The airline restored routes, rebuilt its secondary hub in Cebu, reintroduced turboprop services through PAL Express, and accepted its first long-haul twinjet, the Boeing 777-300ER.

2010s – PAL enhanced its offerings with new transpolar routings for non-stop flights to the east coast of North America, revived its Middle Eastern services, and introduced more advanced De Haviland Dash 8-400s for inter-island flights, as well as Airbus A350-900s and A321neos for international routes.

76 | Supply Chain Outlook Issue 1 PHILIPPINE AIRLINES ASIA PACIFIC

Integrity, excellence, and success are the cornerstones of Lufthansa Technik Philippines, where we ensure safety and reliability for our customers.

Lufthansa Technik Philippines’ extensive portfolio of MRO operations strengthens your supply chain and maximizes support, allowing you to reach new heights with ease.

Execllence in Motion

for the President of the Philippines, Ferdinand “Bongbong” R. Marcos Jr., who was on a mission for the nation.

As the first active pilot to serve as the flag carrier’s top executive since the 1960s, Captain Ng ascended to the PAL presidency after an esteemed 18-year career with the airline.

“Before my time as a pilot, I was a customer service agent at Manila Airport, which provided me with an insight into how PAL interacts with customers at the heart of its operations,” he recalls.

After joining the airline, he underwent his Ab Initio Cadet Pilot training at the PAL Aviation School and joined the pilot roster as a Second Officer in 2006. Subsequently, he rose through the ranks and served as Chief Pilot of the PAL Airbus A320/A321 fleet.

“Everything I have experienced has helped me hone our vision for PAL and enable it to transform itself into a reliable and profitable flag carrier that Filipinos can be truly proud of.

“Our goal is to differentiate the company from other industry players, locally and internationally, through our route network of non-stop flights to major global markets, the

PAL FOUNDATION

“BY HELPING TO ENSURE THAT HIGHLY ESSENTIAL GOODS REACH INTENDED MARKETS, WE KEEP SUPPLY CHAINS MOVING, WHICH HELPS THE ECONOMY”
– CAPTAIN STANLEY NG, PRESIDENT AND COO, PHILIPPINE AIRLINES

The PAL Foundation was established in 1992 as the corporate social responsibility (CSR) arm of Asia’s first airline. The foundation aims to leverage PAL’s airlift capacity to contribute to social welfare development and promote environmental sustainability. This includes providing assistance to marginalised sectors, aiding in disaster relief efforts, and supporting environmental conservation initiatives.

PAL is fully committed to sustainable development and investing in the Filipino people. The company places great importance on the well-being of its customers, employees, the environment, and the community at large.

Its vision to uplift the welfare of communities connected by the PAL network, and its mission to pursue social welfare programmes that assist marginalised individuals and sectors of society, utilises the national flag carrier’s airlift capacity and other resources to deliver aid, transport medical patients, promote Filipino excellence in sports and culture, safeguard the environment, and support the needs of communities served by PAL.

acquisition of latest-generation aircraft, and our service innovations,” Captain Ng reports.

PAL has always led the trend in the aviation industry and continues to do so. Aside from its young, modern fleet and state-of-the-art facilities, it also has one of the most extensive computer systems and radio communications networks in the Philippines.

“Our mission is to build a strong base of dynamic and driven employees who can effectively represent and promote the PAL ethos of quality Filipino service. We are currently focused on implementing digitalisation initiatives that will revolutionise customer service and engagement,” Captain Ng shares enthusiastically.

78 | Supply Chain Outlook Issue 1 PHILIPPINE AIRLINES ASIA PACIFIC

www.aurochocolate.com

A DYNAMIC DELIVERY

Alongside commercial passengers, PAL supports the global economy with air cargo through its port-todoor service.

“Our airline offers direct flights to major global markets in North America, Australia, the Middle East, and all over Asia, making us the top choice for the Philippine economy.

“Thus, we have the capability to address specific freight transport requirements of various sectors. We are able to utilise our cargo space to transport goods throughout the Philippines and the rest of the world,” Captain Ng informs us.

In addition to the usual freight service, PAL has introduced rapid handling of urgent shipment (RHUSH), the fastest way to ship domestically or overseas. Advantages include the highest cargo loading priority, guaranteed space, and fast acceptance and release time.

“We regularly carry essential goods such as e-commerce, vaccines, medical supplies, tissue samples and organs to save lives, and perishable cargo such as fruits, vegetables, marine, and meat products. Additionally, we carry live animals on our ventilated aircraft, and furry family members in accordance

PAL FOUNDATION PROGRAMMES AND ACTIVITIES

MEDICAL TRAVEL GRANT – Partnering with healthcare organisations to help transport patients with serious medical conditions, along with their escorts, to cities in the Philippines or abroad where they can be given the necessary medical treatment at specialised hospitals. The foundation also transports medical volunteers on missions to serve disadvantaged communities throughout the Philippines.

HUMANITARIAN CARGO GRANT – Helping to facilitate the airlift of relief goods and essential supplies to assist disaster-stricken and marginalised communities.

DISASTER RESPONSE – Assisting the rescue, relief, and rebuilding efforts of communities affected by disasters such as typhoons, earthquakes, and oil spills.

REPRESENT PINOY – Granting travel assistance to underprivileged but outstanding Filipinos who represent the country in global competitions in the fields of sports, arts, and academics.

MABUHAY MILES WITH A MISSION – Helping generous PAL Mabuhay Miles members donate unused flight miles to support the foundation’s advocacies and programmes.

OUTREACH TO UNDERSERVED COMMUNITIES – Organising activities that provide assistance to underserved communities and sectors, including support for underprivileged children, the elderly, and people with disabilities through livelihood programmes, material donations, and other initiatives.

ENVIRONMENTAL AWARENESS – Protecting the environment by supporting programmes for the conservation of forests and marine biodiversity.

COVID-19 PANDEMIC ASSISTANCE – Organising initiatives to help alleviate the effects of the COVID-19 pandemic on vulnerable sectors.

80 | Supply Chain Outlook Issue 1 PHILIPPINE AIRLINES ASIA PACIFIC

Creating Connected Inflight Experiences for Today and the Future

Next Generation of RAVE

The IFE system with a focus on sustainability. Consisting of an innovative new lightweight DC power system and MiniLED displays for premium cabins.

RAVE OS Open Platform

Allows third party developers or airlines to autonomously build and deploy applications that will run on RAVE OS.

RAVE Cloud Services

Over the Air Distribution developed in conjunction with Amazon Web Services (AWS) + Edge Cloud Technology for large scale processing and data storage onboard.

with live animal regulations (LARs).

“We also transport human remains, and during the COVID-19 pandemic, we arranged dedicated, specific flights to carry the remains of overseas Filipinos who had passed away in foreign countries. Additionally, we use Manila as a transit hub for cargo destined for other countries,” details Captain Ng.

Naturally, PAL must adhere to strict International Air Transport Association (IATA) guidelines when transporting the recently deceased, and the airline carries out the task with the utmost respect. Furthermore, the cabin crew had protective gear incorporated into their uniforms to carry out the repatriation flights in the wake of the COVID-19 pandemic crisis.

“By helping to ensure that highly essential goods reach intended markets, we keep supply chains moving, which helps the economy,” he declares.

THE CONSUMMATE CREW

Safety is paramount to PAL and its sister company, PAL Express (PALex). To ensure cabin crew are well-equipped to perform their duties, training is completed in-house, and the In-Flight Services Training (IFST) Division handles the requirements so

“WE ARE KNOWN FOR OUR WARM AND GRACIOUS SERVICE ANCHORED IN ‘BUONG PUSONG ALAGA’, MEANING WHOLEHEARTED CARE, WHICH EMBODIES FILIPINO HOSPITALITY AT ITS BEST”
– CAPTAIN STANLEY NG, PRESIDENT AND COO, PHILIPPINE AIRLINES

that the team receives the necessary knowledge, skills, values, and attitudes (KSVA) to perform tasks effectively.

When selecting new employees, PAL seeks individuals with specific skill sets to represent the company’s values and exceed customer expectations. Captain Ng encourages team members to assert themselves and bring fresh perspectives to their work.

“I value courage and the ability to speak one’s mind when the situation calls for it, along with introducing new ideas and ways of doing things.

“I admire individuals who put forth their utmost effort to complete a task, learn from their errors, and progress forward, developing their skills in the process. The honing of one’s abilities is a product of an individual’s concentration and resolve, together with the support of their work

environment, tools, and resources.”

As part of the company’s innovation efforts, PAL has invested in a virtual reality (VR) training programme. This is a first of its kind in Filipino aviation, developed in collaboration with a local start-up and the Civil Aviation Authority of the Philippines (CAAP).

The programme offers an immersive experience that improves learning and service standards, resulting in higher retention rates. Moreover, the interactive and engaging nature of the training makes it more fun to participate in.

Indeed, Captain Ng adopts an open and inclusive approach to leadership, where ideas are explored, and mistakes are seen as learning opportunities.

“As leaders, we must acknowledge the skills of our team members and collaborate with them towards a common goal or vision. We should

82 | Supply Chain Outlook Issue 1 PHILIPPINE AIRLINES ASIA PACIFIC
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LAUNCH OF MANILLA-SEATTLE FLIGHT ROUTE

PAL is proud to be the first airline to directly link the Philippines and the Pacific Northwest area in the US, with continuous flights between Manila and Seattle commencing from October 2024.

Seattle marks PAL’s sixth location in the country, operating the largest network of non-stop flights from the Philippines to the US, also jetting off to Los Angeles, San Francisco, New York, Honolulu, and Guam.

The direct flights from Seattle and the wider region will help stimulate business and leisure travel in Manila, as over 9,000 Americans visited the Philippines in 2023, making the US the country’s second largest source of tourists.

As such, the new service, which coincides with the plans for an upgrade of Ninoy Aquino International Airport, will heavily boost the tourism industry of both nations.

“PAL is happy to say ‘Mabuhay, Seattle!’ Our Manilla-Seattle-Manilla flights give us a valuable opportunity to promote our beautiful island country as a flourishing tourist and business destination for American travellers.

“We also look forward to serving Filipinos who hope to reunite with family members or experience new travel adventures in the vibrant US Pacific Northwest,” excites Captain Ng.

empower and trust our people, providing them with the freedom to innovate and execute at their best, while keeping a strong focus on meeting our customers’ needs and wants. This means having a customercentric approach and a dedication to providing excellent service,” Captain Ng emphasises.

CHARTING A NEW COURSE

To secure the airline’s future, PAL maintains its own air academy to provide a steady supply of pilots.

Since it was established in 1960, the PAL Aviation School has aimed to produce competent pilots with a focus on the airline industry, utilising modern equipment and methodologies in its comprehensive training programme.

The airline understands the importance of having a competent crew to pilot its planes. However, that’s not the only wise business move PAL has made; the airline also takes

care of its digital assets by introducing technology to improve the flight booking experience for its customers.

PAL will integrate Customer 360 – Salesforce’s integrated customer relationship management (CRM) platform powered by artificial intelligence (AI) – across the airline’s contact centre and customer feedback handling units.

“This will give us a comprehensive view of each customer’s interactions so we can personalise and elevate the overall passenger experience while enhancing internal processes to improve efficiency,” Captain Ng clarifies.

The cloud-based software will link PAL with its customers in a whole new way, thus enhancing productivity as well as connectivity.

“We will also use Salesforce’s Sales Cloud, Service Cloud, Marketing Cloud, and Customer and Partner Portals, as well as Slack, to provide employees with the insights and

tools they need to deliver exceptional customer experiences while boosting internal processes to improve efficiency,” Captain Ng explains.

The airline also plans to harness the power of AI through the Salesforce Einstein Chatbot, leveraging its ability to utilise natural language processing (NLP) to understand and respond to customer enquiries.

As well as its fully-fledged transformation journey, PAL is making significant upgrades to its fleet. In 2023, the company placed an order for nine Airbus A350-1000s, with options to purchase three more and deliveries starting from Q4 2025 until 2027.

“Similar to the A350-900, an aircraft we already employ in our fleet, the A350-1000s will be the most advanced new-generation aircraft in any Philippine air carrier fleet, and we will equip these with three cabin classes; namely economy, premium economy, and business,” he reveals.

Fleet renewal can equally help reduce environmental impact by using the latest generation of aircraft, which are quieter and more fuelefficient than their predecessors.

“We are working on other fleet renewal plans and will announce new developments in due course,” Captain Ng concludes.

Hotline: (+632) 8539-0000

(+632) 8855-8888

flights.philippineairlines.com

84 | Supply Chain Outlook Issue 1 PHILIPPINE AIRLINES ASIA PACIFIC
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SAILING TO SUCCESS

As the nearest port to Asia, Darwin Port is strategically positioned as the gateway for Australasian trade. CEO Peter Dummett tells us about its productivity, development, and how it supports the natural marine environment of Darwin Harbour

Writer: Rachel Carr | Project Manager: Ryan Gray

Known as an adventurer’s paradise as a consequence of its diverse cuisine and tropical outdoor lifestyle, Darwin Port is a proven international hub and the nation’s ‘northern gateway’ as the nearest port to Asia.

Operated by Darwin Port Operations Pty Ltd (DPO), which is part of the Landbridge Group (Landbridge), a large private company based in the city of Rizhao in Shandong Province, China, Darwin Port manages commercial facilities at the East Arm Wharf and the cruise ship terminal at Fort Hill Wharf.

Furthermore, it is also a key support hub for the expanding offshore oil and gas fields in the Arafura Sea, Timor Sea, and waters off the coast of Western Australia (WA).

“It is the only port between Townsville and Fremantle with full access to multi-modal transport services,” introduces Peter Dummett, CEO of Darwin Port.

“Landbridge plans to grow Darwin Port by developing the infrastructure to meet future customer needs.

86 | Supply Chain Outlook Issue 1
Supply Chain Outlook Issue 1 | 87 DARWIN PORT ASIA PACIFIC

COULD YOU TELL US

ABOUT YOUR CONTRACTS AND RELATIONSHIPS WITH PARTNERS AND SUPPLIERS?

“We have a great relationship with the stakeholders that operate within the port. We work hard to ensure that their needs are met and that the port runs in the

“The port model that we operate under is that of a landlord and infrastructure provider, and many companies operate outside and inside the port boundary to contribute to a wellstructured supply chain.

“It is critical that we understand each other’s businesses to assist in valueadding to the game, which is costeffective, safe, and efficient cargo

Australia
visiting
88 | Supply Chain Outlook Issue 1

and is primarily used for this purpose in conjunction with naval vessel visits and small non-cargo carrying boats.

Fort Hill Wharf has a total quay length of 300 metres (m), with a natural deep-water berth located just minutes from the central business district (CBD). The facility includes a passenger terminal with the ability to accommodate offshore international passenger processing, as well as ships spanning up to 350m in length.

Dummett currently finds the supply chain space in Australia an exciting place to work in as it poses everevolving challenges and innovation that keep those in the industry invigorated.

“There is quite a bit of consolidation and integration being developed in the Australian supply chain at present. Some operators are looking

to provide a ‘one invoice’ concept for multimodal operations, which can appeal to some organisations,” Dummett reflects.

As Australia is a large country, efficient and cost-effective landslide logistics networks are critical for producers to get their products to market, regardless of whether they are domestic or international, further proving the dedication and hard work Darwin Port puts into its day-to-day efforts.

PORT DEVELOPMENT

In recent years, DPO has continued to invest in the infrastructure of Darwin Port, focusing on optimising and utilising its existing assets.

“Key investments to grow the port’s capacity include the development of approximately 80,000 square metres (sqm) of additional bulk materials

stockpiling area as well as investment in additional undercover storage facilities,” Dummett reveals.

Darwin Port has implemented various ship loader productivity improvement initiatives and transformed its data collection and analysis processes to enable a comprehensive understanding of operational performance.

“Whilst we have put a lot of effort into growth-focused investments, we have also delivered major maintenance programmes with key projects, including the progressive replacement of our firefighting system at our bulk liquids fuel import facility, which was achieved without any interruption to terminal operations that facilitate all the Northern Territory’s fuel imports,” he continues.

Supply Chain Outlook Issue 1 | 89 DARWIN PORT ASIA PACIFIC

Livestock landmark: a gateway to the port

The Berrimah Export Yards (Berrimah), just a stone’s throw from East Arm in the Northern Territory of Australia, is abundant with cattle destined for significant overseas markets.

Between ship loads, when the cattle pens are empty, the yards team are busy preparing for the next convoy of roadtrains from across northern Australia to deliver livestock.

More recently, you will find hard working people across the yard, in the laneways beneath the Ridgeback™ sheds or between the pens.

Indeed, those leaning on the rails of Berrimah are agriculture industry leaders, government representatives, and visiting importers from across Southeast Asia.

Regularly enough the yards will also host local, national, and international media, comprising cameras ready to capture the latest industry news in a relevant setting, showcasing a crucial part of Australia’s AUD$1.4 billion live export industry, all just a short drive from the Darwin central business district (CBD).

Telling the livestock trade’s proud and truly unique supply story is even more powerful when visitors, welcomed to the Darwin Port, witness the livestock loading process.

Berrimah, owned by the NT Livestock Exporters Association (NTLEA), is a showpiece for Australia’s modern livestock export industry. Its leading biosecurity controls, stringent exotic disease surveillance, and custom-designed infrastructure help underpin the integrity of animal health within the live trade’s supply chain.

Equally as important, the yard has developed into a thriving, best-practice animal welfare quarantine facility that processes 40,000 to 50,000 cattle a year for delivery to Darwin Port’s East Arm Wharf - long considered the busiest port for livestock export in the world.

Five years ago, the NTLEA-owned Berrimah, with the assistance of the Northern Territory Government, embraced patented

Ridgebacks™ technology for major upgrades to its quarantine pens, with shade and enhanced air flow capabilities to protect livestock from the top end’s seasonal extremes.

Since the quarantine pens received their first cattle in August 2018, the sheds have been a gamechanger for the yards.

Berrimah manager Ben Giblett said the two Ridgeback™ sheds are an attraction for live export customers from countries like Indonesia and Vietnam, who want to learn more about the supply chain.

“It’s pretty impressive to go down there and feel the difference in temperature, standing in there, there’s a breeze,” Giblett says.

“We take people through what we do, we show them how we bring animals in and scan, weigh, draft, and dip. This is conducted in the processing and receival area that is covered

by an older roof, which has served us well for many years but doesn’t have such a modern design. Then we take visitors down the hill, where the cattle go after induction, which opens up into the new Entegra sheds that have a different temperature with consistent airflow. People feel the climate difference and think it’s incredible.

Berrimah is one of six active pre-export quarantine yards between Darwin and Adelaide River.

A pre-export quarantine facility prepares animals for live export voyages by transitioning them onto the same pellet ration fed on the ship, while conducting health checks and any other animal husbandry and biosecurity requirements.

Less than 10 minutes by truck, Berrimah is by far the closest export yard to Darwin Port.

The mild temperature beneath the Ridgeback™ structures has enabled the company to also quarantine buffalo for live export during the past 18 months.

Reintroducing the heat sensitive animals to the facility for the first time in many years has been easier thanks to the Ridgebacks™ infrastructure.

As a result, water buffalo do not need to wallow in pools of water to cool down.

Giblett has proven buffalo remain comfortable with the cooler temperatures and air flow created by the Ridgbacks™, negating the need to install fans or sprinklers.

The buffalo, weighing 200 to 650 kilograms (kg) in liveweight, are drafted into shipping lines to suit market requirements.

The Indonesian and Malaysian market prefers young, feedertypes, according to Giblet, while Brunei and Vietnam request heavier buffalo.

Unlike cattle, which are required to remain in a pre-quarantine export facility for a minimum of two days, buffalo must quarantine for at least five “clear” days.

Export buffalo, most of which are mustered in partnership with Traditional Owners from across the top end, typically stay at Berrimah between five and 10 days.

“They increase their weight but that’s a compensatory gain because they come in here after a feed curfew for trucking,” Giblett explains.

“The main role here is for the buffalo to get gut filled, hydrated, and used to eating the same pellet they will be fed on the ship. Day-one, we feed them exclusively hay whilst also introducing pellets. The introduction to pellets before they are loaded onto the ship improves the outcomes for the animals.”

The same principles also apply to pre-shipment preparation for cattle.

NTLEA CEO, Tom Dawkins, said Berrimah’s close proximity to the Darwin Port’s East Arm Wharf, plus its quality control, biosecurity, and good animal welfare practices ensure it’s a vital cog in the northern Australian live export supply chain.

Dawkins further added the oversight of a yard manager like Giblett, who spent many years sailing with livestock to their overseas destinations, made the transition from paddock to quarantine and onto the ship a smooth one.

Dawkins also said all pre-quarantine export facilities are pivotal to delivering healthy, well-prepared livestock to global customers.

“Someone like Giblett knows from experience that when you’re sailing with 4,000 cattle, or sometimes even 10,000 to 20,000 cattle, the difference their preparation makes is huge,” Dawkins comments.

“If they are well managed during quarantine, with introduction to shipping pellet and able to socialise happily in their pens,

that’s the first step towards a successful voyage. If cattle are then trucked and loaded onto the ship smoothly and efficiently, then you’ve really given yourself the best chance of a successful shipment.”

But shelter at Berrimah isn’t just about keeping livestock cool. Maintaining dry pens and animals is just as important during Darwin’s wet season.

For Giblett, removing the challenge of wet pens with the Ridgebacks™, and even super dry dusty flooring, adds to the facilities’ productivity.

It’s easy to draft livestock, regardless of the weather, and pen cleaning between consignments is made simpler.

“We can handle multiple species with multiple specifications for different customers simultaneously, which is a benefit for everyone,” Giblett explained.

“If two to three ships arrive in two days for three or four different markets, we can service all of them and be ready for the next truck to come, starting the next shipment.”

As for the future, based on the success of the two existing Ridgebacks™ sheds, the NTLEA has further investment at the yards in its sights.

“We are working on plans for a third shed for the processing area, with quarantine pens designed specifically with buffalo in mind,” Giblett says.

“It would be a low-stress handling area for buffalo and humans and include snap-lock gates, hinges, and fully hessian (enclosures) that would enable ample flow.

“If we increase capacity it could help with any overflow from shipments too.”

This is good news for Berrimah, Darwin Port, and the entire live export supply chain. www.ntlea.com.au

Continuing the focus on optimisation and efficiency, Darwin Port has a number of exciting projects planned to maximise the value that can be delivered from its assets.

This includes the planned development of additional hardstand areas within the port to support the stevedoring operators who are responsible for loading and unloading cargo from or to the vessel.

This work will continue over the next few years alongside a significant investment in rejuvenating existing hardstand areas.

“We will progress the design and potential construction of conveying infrastructure to connect our bulk materials storage area with the existing ship loading infrastructure. This will facilitate the next generation of bulk material export projects by

providing an integrated port/rail infrastructure solution.

“More broadly, we see a huge amount of potential to support the future decommissioning requirements of the offshore oil and gas industry and believe that we are located in a prime position with the correct assets to play a key supporting role,” Dummett explains.

92 | Supply Chain Outlook Issue 1 DARWIN PORT ASIA PACIFIC

PILOTAGE SERVICES

Darwin Port Pilotage Pty Ltd (DPPP) is the designated pilotage services provider for the Port of Darwin. DPPP and DPO provide an integrated approach toward all acts of pilotage by partnering with the ship’s bridge team to ensure pilotage is done safely and professionally.

In order to achieve this, DPPP and

DPO provide pilots that are licenced and experienced for all types of ships that seek safe passage within the Port of Darwin. All pilots receive a significant amount of training within the port environment and on purpose-built simulators. The wide variety of shipping that use the port provides the team with ample training opportunities.

Darwin Port pilots are

International Standard for Maritime Pilot Organizations (ISPO) certified, and this accreditation is audited regularly to ensure that pilotage services provided are in accordance with the DPPP Safety Management System that has been developed by referring to the latest internationally recognised legislation, regulations, standards, and recommended practices.

Supply Chain Outlook Issue 1 | 93 DARWIN PORT ASIA PACIFIC

Qube Ports

Qube is Australia’s largest integrated provider of import and export logistics services, providing a broad range of services to customers through an unrivalled network of assets in over 180 locations across Australia, New Zealand, and South East Asia.

Qube Ports is a key operating division within the wider Qube group, providing port solutions and logistics services with bulk and

general handling facilities in over 40 ports in the region. Qube Ports is a market leader in the provision of purpose-designed solutions for customers, handling containers, bulk, automotive, and general cargo. We are the leading provider of supply chain logistics services to the energy sector, supporting thousands of onshore wells and rig supply vessels, barges, and offshore construction vessels annually. Qube Ports also manages 25 sites for the

forestry industry in Australia and New Zealand and has operations in Singapore and Indonesia.

Qube Ports is committed to an operational culture of zero harm and is dedicated to service excellence. We expand and develop new business opportunities by extending services at existing facilities, creating new facilities by investing in equipment and infrastructure, and working in partnerships to build new business opportunities.

Port of Darwin

Qube Ports manages diversified operations around the Australian coastline, from Dampier in the west, where Qube services the oil and gas market, through to Port Kembla and New Zealand in the east, where the company handles motor vehicles, heavy machinery, project cargoes, and logs, and finally across the Asian market in countries such as Indonesia, Fiji, Vietnam, and Papua New Guinea.

Qube Ports has a significant presence at the Port of Darwin where we support customers with a range of services, including general and automotive stevedoring, bulk stevedoring and stockpile management, and cattle stevedoring for export markets.

Through the Port of Darwin, Qube Ports also provides stevedoring services for the oil and gas sector in Australia’s north, with Qube Energy providing a range of complementary services, including supply base and logistics services for major tier one customers.

Through our Darwin operations, Qube Ports also provides services to the Royal Australian Navy.

Investing in the future of the Port of Darwin

With our two mobile harbour cranes, hoppers, and grabs for bulk discharge, together with investment in innovative cattle loading ramps, Qube Ports is investing in the growth and development of the Port of Darwin as a major import and export hub for Australia. These on-port facilities are complemented by major investments in energy supply base facilities as well as a truck and trailer fleet to support the oil and gas market.

Delivering integrated solutions

Qube has developed a strong reputation for excellence and, along with our proven ability to deliver innovative solutions for our customers, the business has grown over the past 15 years to become an ASX 100 listed company today.

With a market capitalisation of more than AU$5 billion, Qube employs over 9,000 people in Australia, New Zealand, and South East Asia, and has worked hard to build a strong net asset position.

Qube’s key business strength and competitive advantage is that the company owns and operates the infrastructure that enables us to design, implement and manage fully integrated

supply chain solutions that provide our customers with flexibility, reliability, and cost competitiveness. The company has curated a culture that is based on flexibility and responsiveness to our clients’ needs built around three core values – integrity, reliability and inclusion.

Qube employs the best people in the industry, with a breadth of knowledge across multiple facets of the supply chain. The company also has an excellent reputation and proven track record in providing innovative, costeffective solutions to our clients, focusing on reliability and safety as our number one priorities. Furthermore, a fundamental distinction of Qube’s businesses is the ability to offer customers a comprehensive logistics supply chain solution. This is possible due to Qube’s deliberate decision to develop capabilities across multiple aspects of the supply chain, from the port to the endcustomer for both import and export products. This integrated approach enables Qube to remove inefficiencies in the logistics supply chain and provide a valueadded competitive service to our many customers.

+61 2 9080 1900 info@qube.com.au. | www.qube.com.au

DARWIN PORT

DARWIN PORT’S SAFETY PLAN

Darwin Port is responsible for developing, managing, and maintaining the core port infrastructure, providing crucial commercial maritime services, including pilotage, navigation, and the maintenance of the commercial shipping channels of Darwin Harbour.

The Port Safety Plan (PSP) is underpinned by federal and territory legislation and standards, and is reviewed and approved annually by the Northern Territory government’s regional harbourmaster.

The objective of the PSP is to provide a safe working environment by upholding safety standards and promoting the safe and efficient operation of the port.

The PSP applies to all Darwin Port facilities, including the East Arm Wharf, Fort Hill Wharf, and the wider Port of Darwin. It also applies to stakeholders comprising tenants, licensees, and service providers. Other operators are obligated to comply with the PSP.

MARKET SUCCESS

As Asia has the highest population density in the world, the close proximity of Darwin Port provides a competitive advantage in terms of shipping costs and duration compared to other Australian ports.

“In terms of product, the import of petroleum is the biggest commodity. The Vopak terminal supplies fuel for the Northern Territory, all imported through our port,” Dummett states.

From an export perspective, bulk minerals are the company’s biggest market, with the majority being shipped to China for use in its steelmaking operations.

Indeed, China was Australia’s leading export partner in 2022, importing approximately USD$103 billion worth of goods.

Live cattle is also a major export, with Indonesia receiving nearly 90 percent of the commodity exported from Darwin.

East Arm Wharf has a rail-mounted bulk minerals ship loader with a maximum loading capacity of 2,000 tonnes per hour. Bulk minerals, such as iron ore and manganese, are transferred from rail wagons to the stockpile areas using a dedicated conveyor.

The Minerals Council of Australia reported that iron ore exports surged

by 20 percent in 2021. Geologically, Australia is an ancient continent with an abundant supply of minerals and a relatively flat terrain, and apart from some coastal regions, it is sparsely populated – both aspects benefit exploration and mine development.

As an island country, Australia has 17 nationally significant ports, selected based on ship call, throughput, and international sea trade values. The country mostly imports containerised cargo and exports bulk cargo. Darwin Port is the only multi-user and multi-commodity port in the Northern Territory.

SUSTAINABLE PORT OPERATIONS

Darwin Port takes environmental sustainability seriously and undertakes a series of measures to protect the harbour’s marine flora and fauna. There are 36 species of mangroves and diverse marine life characterising Darwin Harbour. Darwin Port has not needed to develop any mangrove areas since the construction of East Arm Wharf in excess of two decades ago.

“We continue to maintain a number of measures to improve environmental sustainability, and are currently developing a sustainability strategy to make further

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Now commanding a fleet of over 100 specialised trucks, augmented by a diverse range of state-of-the-art plants and machinery, Ostojic Group stands as an eminent provider of integrated services. With operational hubs situated in Darwin, Cloncurry, and Mt Isa, we offer an expansive suite of services, encompassing transport and logistics, civil construction, quarrying, concrete production and land sales.

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improvements for the future within Darwin Port facilities,” Dummett points out.

One area, known as Pond D, is 12 hectares (ha) in size and is protected from development and other activities that would be detrimental to migratory birds. The endangered

PORT OF DARWIN FACTS

• The port was first used for modern commerce in 1869.

• The main commercial facility is East Arm Wharf, with a quay line of 800m.

• Fort Hill Wharf is chiefly used as a terminal for cruise ships and visiting defence vessels.

• The city of Darwin is nearer to the capitals of five countries than it is to Australia’s capital city, Canberra. As a fundamental access point for all flows of trade from the north, the port is also seen as a key facility for servicing offshore oil and gas production.

Eastern Curlew, Whimbrel, and Great Knot are some of the migratory species that frequent it, particularly during the wet season.

Darwin Port does not have any waste or wastewater discharges to the harbour, as all waste is removed from the site by contractors and the sewerage system. Furthermore, stormwater from large areas of the wharf passes through sedimentation ponds prior to entry to the harbour.

“We have participated in the Darwin Harbour Clean Up since it started 13 years ago. 2023’s endeavour, coordinated by Larrakia Nation rangers, saw Darwin Port participants collect about 135 kilogrammes (kg) of rubbish from the beach and mangroves of the Wickham Point area,” he divulges.

These initiatives are part of a multi-faceted approach, including the Port Environmental Protection Plan. Through this, Darwin Port regulates the speed of commercial vessels to minimise the risk of vessel strikes on marine fauna such as dolphins, dugongs, and turtles. The speed limits vary depending on the pilotage area of the harbour.

However, the port’s shipping channels do not require annual or frequent maintenance dredging, and the last project of that scale occurred during 2016.

“Our operations are ISO14001 Environmental Management Systems certified by an independent auditor. Furthermore, we are currently developing a comprehensive sustainability programme, which will better coordinate our existing activities and bring in new sustainability measures to be implemented,” outlines Dummett.

NATURAL MARINE ENVIRONMENT

Growing in fine sediments, mangrove forests line the tidal boundaries and cover more than 26,000 ha.

Three species of dolphin – the Australian snubfin, the Australian humpback, and the Indo-Pacific bottlenose – are commonly encountered within the Darwin Harbour region. These majestic marine mammals are seen alongside dugongs and six species of sea turtles, including flatback and olive ridley turtles.

98 | Supply Chain Outlook Issue 1
ASIA PACIFIC
DARWIN PORT

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Safe and Efficient Vessel Operations

DTLS have assisted contractors with a wide range of products from dredging, drilling, environmental surveys, defence service, coastal towage, salvage tows, civil construction, harbour towage and crew and stores transfers across the Top End of Australia.

We operate a diverse fleet of vessels with experienced crew offering our customers the “One Stop Shop” service and peace of mind. DTLS operate Darwin’s only privately owned workboats fitted with Sub Sea Fendering.

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Celebrating over 50 years servicing the Northern Territory, CTB takes pride in its enduring relationship with Darwin Ports, working seamlessly to cater for the diverse needs of our stakeholders.

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Supply Chain Outlook Issue 1 | 99 DARWIN PORT ASIA PACIFIC

“WE CONTINUE TO MAINTAIN A NUMBER OF MEASURES TO IMPROVE ENVIRONMENTAL SUSTAINABILITY, AND ARE CURRENTLY DEVELOPING A SUSTAINABILITY STRATEGY TO MAKE FURTHER IMPROVEMENTS FOR THE FUTURE WITHIN DARWIN PORT FACILITIES ”

– PETER DUMMETT, CEO, DARWIN PORT
100 | Supply Chain Outlook Issue 1

The saltwater crocodile also inhabits the harbour, though it is actively removed from it as part of a crocodile management programme managed by the Northern Territory government.

Additionally, Darwin Harbour supports endemic and migratory birds, such as the snipe, godwit, curlew, and sandpiper species. Many shorebirds that visit the mudflats are migratory species protected by the Japan-Australia Migratory Bird Agreement (JAMBA) and the ChinaAustralia Migratory Bird Agreement (CAMBA).

Darwin Port manages marine oil spills in Darwin Harbour in accordance with the Darwin Port Oil Spill Contingency Plan. Furthermore, the Northern Territory government has its own contingency plan across the area.

Regarding environmental monitoring, Darwin Port conducts a sample and analysis programme to check the health of the facilities and their surroundings. Early detection of emerging issues will enable action to be taken, minimising environmental impact.

The physical, chemical, and biological properties that are monitored include water, marine sediment, air quality, noise, trade waste, energy consumption, and greenhouse gas (GHG) emissions.

PAST, PRESENT, AND FUTURE

Australian ports have a rich history dating back to the early days of European settlement. The first significant ports were established in Sydney, Melbourne, and Hobart during the late 18th and early 19th centuries. These ports served as crucial gateways for the transportation of goods and people.

During the gold rush in the mid-19th century, ports such as Melbourne and Sydney experienced a surge in maritime activity as immigrants arrived seeking their fortune. The development of rail networks further

connected inland areas to coastal ports, facilitating trade.

In the 20th century, containerisation revolutionised cargo handling, and many Australian ports adapted to this new system. Major hubs like Port Botany in Sydney and the Port of Melbourne expanded their facilities to accommodate larger vessels and increased trade volumes.

Historically, Australian ports have played a pivotal role in the nation’s economic development, facilitating imports, exports, and domestic transportation. Today, they continue to be vital to Australia’s trade and connectivity with the global economy.

The Darwin Port team takes great pride in delivering a comprehensive portfolio of maintenance and capital projects each year, with as many as 50 discrete projects completed annually in addition to its routine activities.

“Our focus, as always, is on ensuring this portfolio is delivered safely without harming our team, contractors, or stakeholders. We also take pride in ensuring all our work is delivered at the highest possible quality, environmental, and sustainability standards,” finishes Dummett.

A recent goal that Darwin Port achieved, working with its stakeholders, was the first load out of spodumene ore from the port.

Tel: 1300 327 946

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Supply Chain Outlook Issue 1 | 101 DARWIN PORT ASIA PACIFIC

A FAMILY

AFFAIR

As New Zealand’s leading nationwide provider of specialist transportation and distribution solutions for hazardous and high-value goods, Alexander Group has operated as a trusted, family-run business since 1971. Hayley Alexander, CEO and secondgeneration business owner, tells us more

ALEXANDER GROUP ASIA PACIFIC 102 | Supply Chain Outlook Issue 1
Hayley Alexander,

Amidst a diverse and stimulating industry, and with over 50 years’ experience in safe and efficient transportation, specialising in both bulk and packaged gas distribution across New Zealand and internationally, Alexander Group emerges as a logistics operations enterprise with a difference.

The company’s distinguished record has earned it a reputation for reliability and safety, whilst its

commitment to excellence and innovation has positioned Alexander Group as a trusted leader in the industry, where the notion of ‘family’ runs deep.

“We’re passionate about what we do, and as a family-run company, it’s part of who we are,” opens Hayley Alexander, CEO of Alexander Group.

Founded by John and Cecile Alexander in 1971, Alexander Group is now run by the second generation of the family, of which all three siblings

are actively involved in the company’s management.

“I’m one of three siblings; my brother Rod and sister Gabrielle work alongside me. This awards Alexander Group with a unique, family feel, which I believe is one of our key points of difference,” she continues.

With a technical background in social work and policy, Hayley’s skillset is ideally matched to implement an ambitious business model whilst managing a large workforce.

Supply Chain Outlook Issue 1 | 103
Alexander Group’s newest Scania trucks to join the fleet

“When managing a customer interface or understanding what the business needs to execute its huge scope of work, my experience comes in useful. It’s about understanding people and the bigger picture, both structurally and socially.”

With a nationwide presence, 180 staff, a fleet of over 100 trucks, and operating across 21 locations, Alexander Group offers unparalleled expertise and innovative multimodal solutions for a vast range of transportation needs.

ENDLESS CAPABILITIES

Regarding its core competencies, the organisation supplies end-toend solutions for well-known gas companies across New Zealand, including the transportation of cryogenic gases, liquefied petroleum gas (LPG), and carbon dioxide, as well as medical and industrial gas cylinders, AdBlue, and more recently, refrigerated goods.

In addition to a suite of specialised contracts, Alexander Group’s core service offerings are bolstered by its accreditations, facilities, and systems, enabling the safe transport of hazardous substances in accordance with rigorous regulations.

“With over 25 years’ experience in transporting dangerous goods, and as a member of the LPG Association of New Zealand and NZ Hydrogen Council, we’re committed to ensuring the safe transportation of substances in the communities we serve. Our core focus is safety and security,” she outlines.

SUPPLY CHAIN OUTLOOK: HOW IMPORTANT IS DIVERSITY AND INCLUSION TO ALEXANDER GROUP, AND HOW DOES THE COMPANY PROMOTE THESE VALUES IN THE WORKPLACE?

HAYLEY ALEXANDER, CEO: “We’ve recently participated in Transporting NZ’s Driving Change Diversity Programme, which showcases diversity stories across the transport industry and teaches participants how to embrace and celebrate a unique workforce.

“As a progressive female leader of a family-owned business with a diverse workforce, I was selected as a ‘champion’ of the programme in 2022. As a company that is proactive in promoting diversity and inclusion in the workplace, Alexander Group clearly stood out as a firm choice, particularly due to our opportunities for women.

“I believe that breaking down barriers to diversity not only helps the transport industry meet capacity demand, but also provides fresh perspectives that can be key to addressing current challenges.”

104 | Supply Chain Outlook Issue 1 ALEXANDER GROUP ASIA PACIFIC
John and Cecile Alexander

The company’s deep market knowledge, coupled with its ability to manage discrete resources within the oil and gas sector, means that it is able to supply tailored services for its customers, especially when it comes to the transportation of high-value goods.

“We work in close partnership and collaboration with our customers. Our strength lies in our ability to simultaneously manage health, safety, and compliance, and safely deliver on time.”

Alexander Group’s operations remain unperturbed despite manifold factors that threaten to undermine them, such as unexpected weather conditions or natural disasters.

“Our ability to manage a specialised supply chain across the country and customise a service to continue to deliver on time, every time, even in the face of unexpected circumstances, sets us apart from the competition,” Hayley explains.

Transport partners and suppliers enable the company to maintain a nationwide presence and a reputation for excellence.

“Connecting with competent and reliable partners keeps us particularly strong,” states Hayley.

Facilitated by Scania, all of Alexander Group’s fleet is telematics and artificial intelligence (AI) camera enabled. This promotes impeccable driver behaviour and high productivity outcomes within the company.

“Our network of service providers is critical to keeping our fleet on the road, and they reach all corners of the country, making us one of the most efficient freight companies New Zealand has to offer,” she comments.

“In addition, we have strategic partnerships with other transport companies and freight forwarders, which gives our customers the most responsive and connected network of hubs and high-quality trucks and drivers throughout the country.”

A pre-qualifier to work both in partnership or on the team at Alexander Group is a commitment to safety and the highest service standards.

Marcus Tiomata and daughter, Naomi Toimata. Marcus is one of Alexander Group’s Driver Trainers, and Naomi is the company’s first cadet who is now a Class 5 truck driver LPG bulk tanker The three Alexander siblings (left to right): Hayley Alexander, CEO; Rod Alexander, Transport Adviser; Gabrielle Fitness, Marketing and Communications Manager
Supply Chain Outlook Issue 1 | 105 ALEXANDER GROUP ASIA PACIFIC

Scania NZ –Proud partners of Alexander Group

At Scania New Zealand (Scania) we pride ourselves on tailoring our vehicles and services to meet the unique needs of our customers. We are also focused on providing sustainable transport solutions for use in a wide range of applications by those same customers. These brand traits and client relationships are no better exemplified than by our partnership with Alexander Group.

The group is a family-owned business of more than 50 years, specialising in transporting dangerous and hazardous goods and high value commodities.

Alexander Group’s focus is on safety, quality, and professionalism. From the design and specification of their vehicles, to the staff they select to be on their team, safety is at the core of the company.

Alexander Group is also innovative in their vehicle design - aiming to engineer as many safety features as possible into their vehicles and challenging Scania to improve on each vehicle build.

Scania’s response to these demands is why Alexander Group has been exclusive with us for over a decade.

“The safety features offered on the Scania are crucial for Alexander Group given the hazardous product we transport. We want every driver to get home in good shape and to be as safe as they can be out on the road. The Scania product achieves that in every respect for us,” says Rod Alexander, Transport Advisor for Alexander Group.

Being able to provide Alexander Group with the world’s first truck with side curtain air bags, and with forward facing sonar and active emergency brakes, made a significant impact on Alexander Group’s decision to go and remain exclusively with Scania.

But the company also prove its partnership back at base with the management tools on offer for Alexander Group.

“Scania partners with our team by constantly refining and improving our practices and ensuring staff have access to real time data to manage the changing risks on-road in a time-demanding environment,” says Rod.

“The Scania fleet management portal we use - Scania Communicator - allows us to get a whole dossier of information from the vehicle in real time. It measures fuel and load as well as our drivers’ performance, and gives them real time feedback at the same time.

“It makes our job very easy as fleet owners to measure how we’re going and importantly to improve how we’re going. It’s hugely valuable and we’ve seen great gains from it.”

Scania’s service network is also critical to keeping Alexander Group’s fleet on the road. By Scania reaching all corners of the country, it helps the group to be one of the most efficient freight companies in New Zealand.

Scania’s Director of Sales, Deon Stephens, says ultimately Alexander Group’s modern, specialised fleet is selected from us because we align with Alexander Group’s vision of having best practice in transportation.

“We aim to be the industry’s preferred solution provider, delivering premium products and services in a sustainable way with a strong dealer network. That is our commitment to customers and the ongoing focus of our fantastic team.

“There is nothing better for our brand and team than to see the results of our focus and effort strongly validated by our most important critics – our customers.

“Our partnership with Alexander Group is at the very top of that relationship,” says Stephens.

scania.com/nz/en/home.html

PROUD PARTNERS WITH ALEXANDER GROUP
“THE REASON WE HAVE ACHIEVED SUCH SUCCESS TODAY IS THAT WE’VE GOT INCREDIBLE PEOPLE ON OUR TEAM, WHILST OUR INVESTMENT IN DIGITAL PLATFORMS AND OUR ABILITY TO PARTNER WITH PEOPLE THAT CAN PROVIDE EFFECTIVE SOLUTIONS PUTS US ON TOP”
– HAYLEY ALEXANDER, CEO, ALEXANDER GROUP

“Our hard work over decades has earned us industry recognition,” Hayley states.

Alexander Group was proud to be presented the award for Outstanding Contribution to Health and Safety at the Transporting New Zealand Industry Awards in 2022, whilst its

training and compliance programme was recognised with the company receiving the Company Driver Safety Award at the Australasian Fleet Champions Awards in 2023.

Rod Alexander, Transport Adviser, leads all fleet procurement and was acknowledged as Road Risk Manager

of the Year at the same awards for his unrelenting commitment to engineering in fleet safety, providing drivers with the most modern and safe vehicles on the roads in New Zealand.

STAFF AND SUSTAINABILITY

Recognising the importance of sustainability and integrating eco-friendly practices within its operations is an integral part of Alexander Group’s operations.

“Our commitment to environmental stewardship extends beyond compliance, as we actively seek ways to minimise our carbon footprint and promote responsible transportation practices,” Hayley informs us.

108 | Supply Chain Outlook Issue 1 ALEXANDER GROUP ASIA PACIFIC
Cylinder bottles transported up and down the country
Allan Shaw Carrying Co Ltd has been operating in Paraparaumu on the Kapiti Coast, providing excellent transport services to our customers, since 1980. We are a proud family run business that is always looking for greater service excellence for our valued customers. We have over the years developed a wide range of vehicles and equipment especially to service specialised cartage and delivery needs. We look forward to working with you to ensure your deliveries are on time and arrive in perfect condition. 18 Birmingham St, Paraparaumu | admin@allanshawcarrying.co.nz www.allanshawcarrying.co.nz Specialist liquid and gas supply chain solutions Australia | New Zealand | Asia | Pacific Island - Asset Management - ISO Tank leasing - Supply Chain solutions Braid logistics New Zealand Limited Auckland New Zealand Phone: 64 9 273 9713 | Email: phil@braidco.nz Supply Chain Outlook Issue 1 | 109 ALEXANDER GROUP ASIA PACIFIC

All of Alexander Group’s trucks are kitted out with EURO 6 emission diesel engines, the lowest emission engines available on the market.

“For each of our engines, we have a replacement policy with our partner, Scania,” Hayley divulges. This means as soon as its engines are not operating at maximum efficiency, the company is able to swiftly replace them.

Moreover, Alexander Group is actively engaged in seeking an alternative fuel solution to power the business.

“As a member of the Hydrogen Council of New Zealand, we’re an active part of a national shift towards a sustainable future. We hold the unique position of being the only transporter of bulk hydrogen throughout New Zealand, which we have been carrying out for over two decades for our platinum customer, BOC.

“Although hydrogen truck fuel technologies are yet to be fully commercially available in New Zealand, we’re certainly interested in implementing hydrogen fuel into our vehicles and are proud to be a small part of enabling the innovative solutions emerging in the New Zealand transport industry through delivering hydrogen,” affirms Hayley.

ALEXANDER GROUP – AT A GLANCE

SAFETY FIRST: The company prioritises the safety of its operations by adhering to the highest industry standards and implementing rigorous safety protocols. Its impeccable safety record underscores the company’s unwavering commitment to the well-being of its personnel and the communities it serves.

A MODERN, WELL-SUPPORTED FLEET AND SERVICE NETWORK: With a nationwide presence, Alexander Group boasts a network of service providers available for 24/7 fleet support, each of whom understands the unique demands of its customer requirements, which results in minimal downtime and maximises planned preventative maintenance.

CUTTING-EDGE TECHNOLOGY: Alexander Group leverages state-of-the-art technologies and advanced equipment to optimise the efficiency of its gas transportation services. Investment in the latest innovations enables the company to deliver reliable and environmentally responsible solutions.

REGULATORY COMPLIANCE: A dedicated team stays abreast of evolving regulations across transport and the transportation of dangerous goods. The company meticulously adheres to all compliance standards, mitigating risks and ensuring smooth operations in diverse regulatory environments.

ENVIRONMENTAL STEWARDSHIP: Recognising the importance of sustainability, Alexander Group integrates eco-friendly practices into every operation. A commitment to environmental stewardship extends beyond compliance, as the company actively seeks ways to minimise its carbon footprint and promote responsible transportation practices.

ALEXANDER GROUP ASIA PACIFIC
Drone footage of trucks parked up at Alexander Group’s Hautapu Hub

In addition to its sustainability practices, the company also invests heavily in its staff.

“Following the COVID-19 pandemic, New Zealand experienced a serious shortage of staff. Although extremely difficult at the time, it enabled us to view things differently,” Hayley shares.

As a result of the pandemic, Alexander Group began to train and develop younger cadets.

“We now have a far better process for training and upskilling our staff and developing their careers. We don’t view our employees solely as truck drivers; they’re highly professional, skilled colleagues,” she enthuses.

The company seeks to enable its staff to cultivate long-term, rewarding careers within the company, with optimum working conditions and opportunities to upskill.

“Ultimately, we want to avoid incidents, and to this end, we do a lot of training, fatigue management, and varied shift times to ensure drivers retain the right behaviours to avoid accidents and incidents.”

Promoting impeccable driver conduct and high productivity outcomes is considered an essential aspect of logistics management within Alexander Group.

“In short, we’re creating opportunities that enable our people a strong career pathway within the company,” Hayley states.

FUTURE FACILITY

Looking to the future, Alexander Group is focusing on developing its expertise across the board.

“We’re looking to grow and expand within the specialised oil and gas sector, as well as in other associated industries, such as high-value goods, bulk liquids, and refrigerated transportation,” Hayley outlines.

With a focus on domestic growth, the company also wishes to expand its strategic hubs nationwide.

“We’ve recently established a new hub which entirely changed

the network design for some of our customers and expanded our distribution network.”

The hub in question, based in Hautapu, Waikato, led to the company being able to maximise its network and attract an expanded customer base due to its strategic location with access to ports, rails, and roads.

In addition to its physical expansion, Alexander Group’s commitment to digitalisation is notable.

“Digitalisation has been a strategic focus for the company in recent years and has facilitated a growth mindset. Ultimately, it has enabled us to grow from a small to a medium-sized family business,” Hayley reveals.

The company’s digital activities range from scaling its systems and processes more efficiently to adopting new technologies, such as AI, to optimise its operations.

“Our digital customer platforms are critical to our service provision and managing a distributed workforce across the country,” she states.

Ultimately, in a world dedicated to decarbonisation, reducing emissions, and increasing efficiency,

Alexander Group seeks to enhance its capabilities through a range of strategies as it moves forward into 2024.

“The reason we have achieved such success today is that we’ve got incredible people on our team, whilst our investment in digital platforms and our ability to partner with people that can provide effective solutions puts us on top,” she concludes.

Tel:

+64 9 951 2335

www.alexandergroup.co.nz

ALEXANDER GROUP
Supply Chain Outlook Issue 1 | 111 ALEXANDER GROUP ASIA PACIFIC
Alexander Group’s 50th year celebration truck, transporting AdBlue around the North Island
PACIFIC TUG GROUP ASIA PACIFIC 112 | Supply Chain Outlook Issue 1

TUGGING DOWN UNDER IT’S WHAT WE DO BEST

Proudly showcasing over five decades of leadership in maritime services, Pacific Tug Group is an Australian familyowned and operated business that can handle any complex sea transport requirements. Chris Peters, CEO, speaks to us about its vast experience and plans for the future

Writer: Lauren Kania Project Manager: Ryan Gray
Supply Chain Outlook Issue 1 | 113

The maritime industry has always been crucial to Australia’s economic and trade landscape.

Given the country’s geographical position as an island nation, it is dependent on the sea for both international trade and domestic freight movements, alongside supporting local communities with jobs and innovation.

No one better represents the importance, diligence, and longevity of Australia’s maritime industry than Pacific Tug Group.

Australian-owned and operated for just under 60 years, Pacific Tug Group has proudly become the leading provider of specialised maritime services in the country and the Asia Pacific region, ensuring that every client’s project is in safe, reliable hands.

Having earned a proven reputation through its experience, capabilities, and resources, the group provides solutions for any maritime task.

Chris Peters, CEO of Pacific Tug Group, has grown up in the industry, following in his family’s footsteps to lead the group and earned the title of master mariner in the process, further showcasing his passion for the sea.

“While there is always work that needs to be done to progress this ever-evolving industry, it is an incredibly exciting space to be in,” he opens.

The group’s origins date back to 1965, when it initially began as a tugboat operator and participated mostly in dredging support activities.

From there, it grew with a focus on providing well-maintained vessels and associated equipment operated by a qualified and competent crew and supported by professional managers and ex-seagoing personnel.

“With this expansion, we’ve now acquired over 30 vessels, the largest regulated offshore vessel (RAV) fleet in Australia, and two marine bases,” expands Peters.

Across five decades in the maritime services industry, Pacific Tug Group has more than proven itself, safely and successfully completing complex marine support operations including dredging, salvage, marine construction, coastal and international towage, and maritime logistics. The group’s vast expertise and technical knowledge within the field will continue to make waves with its dedication, innovation, and desire to achieve great outcomes.

A FAMILY ENDEAVOUR

“We are proud to be a secondgeneration family business and continue the family-oriented culture which has served as the foundation of the group,” enthuses Peters.

Due to the intimacy of its origins, Pacific Tug Group has continued to seamlessly evolve and diversify along with the changing needs of its clients and the maritime industry.

This ability to adapt and find flexibility in even the most urgent and challenging situations is in large part due to the workplace culture, which is of the utmost importance.

Many of Pacific Tug Group’s staff members have been a part of SUPPLY

Chris Peters, CEO: “Supply chain operations are fundamental to any business. In a world where contracts and litigation are becoming more and more problematic, and people are working less in good faith, it is crucial to have trusted suppliers.

“We always maintain our partnerships. Unless there is a need to change, we are loyal and stick to the same companies throughout a project or endeavour.”

CHAIN OUTLOOK: HOW IMPORTANT ARE TRUSTED SUPPLIER RELATIONSHIPS TO PACIFIC TUG GROUP?
114 | Supply Chain Outlook Issue 1 PACIFIC TUG GROUP ASIA PACIFIC

www.apacoutlookmag.com/work-with-us

the team for over 30 years, and in several cases, the second generation continues to work for the group due to the values of open communication, respect, and a mutual passion for advancing people and the industry.

“We have a very flat organisational structure that fosters trust, responsibility, accountability, and freedom in the people who make up the group,” details Peters.

“I like to think my leadership style is one that promotes accessibility, nimbleness, and the confidence to make quick decisions in a fast-paced environment.”

With a team of approximately 150 individuals spread across a variety of responsibilities, the advantages of such a culture have been tangible.

Pacific Tug Group enjoys a workplace that is free of disputes

and discrimination, and consistently achieves the highest levels of customer satisfaction.

This overall attitude provides flexibility and responsiveness in its services that no competitor can match. In addition, all staff and crew have the required competencies and specialised training to achieve the best possible operational and safety standards.

Tell us your story and we’ll tell the world
PACIFIC TUG GROUP ASIA PACIFIC

SIX DIVISIONS

Pacific Tug Group is a conglomerate of six companies dedicated to specialist services, collectively delivering integrated solutions and providing clients with the comfort of knowing their project is in safe hands.

These six different divisions include Pacific Tug, Wide Bay Shipping Services, Pacific Fleet Engineering, Pacific Marine Base Brisbane, Pacific Marine Base Bundaberg (PMBB), and Pacific Defence Services.

With strategically employed specialists in each respective division, there is no challenge too difficult.

“THIS INDUSTRY IS ALWAYS DYNAMIC. YOU CAN’T SIT ON YOUR HANDS; YOU HAVE TO BE PROACTIVE, PLAN FOR THE FUTURE, AND BE ENGAGED”
– CHRIS PETERS, CEO, PACIFIC TUG GROUP

Additionally, the group boasts a centralised management team that allows for unrivalled service under the strictest of quality systems.

“Pacific Tug stems from the original business operations of 1965 where we offer dredging support work, towage

activities, transhipment, land-based logistics, and more, operating in New Zealand and the Pacific Islands regularly,” explains Peters.

Pacific Marine Base Brisbane offers engineering, repair, and maintenance services, as well as project support.

116 | Supply Chain Outlook Issue 1 PACIFIC TUG GROUP ASIA PACIFIC

It is ideally situated in the Brisbane River, providing easy access to key services and infrastructure.

Stage 1 of PMBB, a relatively new base for Pacific Tug Group, is in an advanced phase of development.

Perfectly located south of the Cyclone Zone and Great Barrier Reef Marine Park, the base is the Port of Bundaberg’s first new wharf in over 60 years, offering a roll-on/roll-off (Ro-Ro) facility and the highest capacity wharf along the eastern seaboard of Queensland. PMBB will provide vessels with access to South East Queensland’s hub of agriculture,

manufacturing, and industry.

Additionally, the base is 1,000 nautical miles (NMs) from a number of South Pacific Island nations, providing excellent freight routes, emergency response capacity, and a competitive advantage for trade with

the region.

“With this base, which was once a sugar and molasses port, we anticipate a focus on transporting and towing oversized mass and renewables such as wind and solar farms,” expands Peters.

PHOTOGRAPHY: BEN VOS
Supply Chain Outlook Issue 1 | 117
PHOTOGRAPHY: BEN VOS

PACIFIC TUG GROUP –AT A GLANCE

Based in Brisbane and operating throughout Australia and the Asia Pacific region, Pacific Tug Group is a trusted, reliable operator specialising in:

• Sea towage

• Salvage

• Harbour towage

• Dredging support

• Transhipment

• Construction and project support

• Fleet engineering and technical services

• Land-based logistics

• Defence support

“WHAT DIFFERENTIATES US FROM THE COMPETITION IS OUR DIVERSIFICATION. WE TAKE ON MANY OF THE MORE COMPLEX, DIFFICULT PROJECTS WITHIN THE MARITIME SERVICES INDUSTRY, AND WE DO SO WITH THE UTMOST CONFIDENCE AND SKILL”
– CHRIS PETERS, CEO, PACIFIC TUG GROUP

PMBB further demonstrates a major investment in the renewables gateway, showcasing the group’s expertise, experience, flexibility, and dedication to maintaining only the highest of standards.

Together, these strategically located bases enormously benefit and support the Bluewater Highway’s connection between South East Queensland, Australasia, New Zealand, and the Pacific regions.

SUPERIOR QUALITY FOR A SUPERIOR FUTURE

Pacific Tug Group promises safety, reliability, and professionalism in all of its services in order to tackle any complex sea transport requirements.

By employing experienced personnel, supported by an equally experienced shore-based management team, the group boasts an unmatched industry awareness of operations undertaken

PACIFIC TUG GROUP ASIA PACIFIC

and the ability to provide high-quality services to its clients.

This ability to tackle challenges head-on is due, in part, to the workforce that makes up the group.

“Under our leadership, people are engaged, and if something needs to be accomplished, the entire team works together to get it done. It is truly a great environment to be a part of,” prides Peters.

What is also of significant importance to Pacific Tug Group is the pursuit of its corporate social responsibility (CSR) practices for both the environment and the local communities in which it is present.

“We help as corporate citizens wherever we can. We mainly focus in the regional areas where we work and conduct our procurement locally

to support as many independent businesses and locals as possible,” insights Peters.

Additionally, the group sets itself environmental key performance indicators (KPIs) to work towards, invests in third-party training for its staff members, and ensures that it recycles as many byproducts from its operations as possible, such as oils and sandblasting grit. In addition, the group is embracing renewable energy having recently fitted out its maintenance facility with solar power.

With an extensive and committed history of guaranteeing an uninterrupted supply and continuity of service, Pacific Tug Group’s track record is impeccable and has long been considered an industry benchmark.

Tel: +61 (7) 3383 6600 pacifictug@pacifictug.com www.pacifictug.group Supply Chain Outlook Issue 1 | 119

REGIONAL DEVELOPMENT, NATIONAL EXCELLENCE

Historically, ports have connected countries, communities, and people; Ports North is no different. From transport, trade, and recreation to defence and maritime repair operations, the company serves, enables, and contributes to an extensive list of industries and businesses.

“Ports are fascinating operations and touch a diverse range of industries. At Ports North, our operations weave through the social fabric of Far North Queensland,” opens Richard Stevenson, CEO. A regional port operator with a difference, Ports North handles bulk shipments of various cargos, and controls a network of nine ports that supply some of the most remote parts of Australia, including the Torres Strait and northern areas of the country. The company also has a range of strategic port land holdings and maintains extensive marine and tourism facilities, particularly in Cairns.

120 | Supply Chain Outlook Issue 1

As a Queensland government-owned corporation responsible for developing and managing several ports across Northern Australia, Ports North’s operations and facilities are vital to regional economic development. The organisation connects communities to each other and the world, and is a major enabler of the region’s growing tourism and trade sectors. Richard Stevenson, CEO, tells us more

Supply Chain Outlook Issue 1 | 121 PORTS NORTH ASIA PACIFIC
Writer: Lily Sawyer | Project Manager: Ryan Gray

“I suspect that we’re one of the most diverse port operators in Australia. The Cairns Marlin Marina is home to a large fleet of reef tour operators and is becoming increasingly popular with superyachts, accommodating vessels up to 140 metres (m). We also have growing international and domestic cruise ship visitation, defence, and commercial fishing operations, alongside a well-established marine maintenance, fabrication, and repair industry,” he reveals.

“We have regional bulk commodity ports that provide access to some of the Far North’s most remote locations. This includes the ports of Skardon River, Cape Flattery, Karumba, Mourilyan, and the community port at Thursday Island.”

With such a broad remit of stakeholders, customers, and capabilities, Ports North cements its reputation as a leader within Australia’s maritime and port industry.

“We manage and develop port land and infrastructure to create economic opportunities and connect people. We’re multi-dimensional – far more than people would think,” Stevenson outlines.

“WE CONSIDER OURSELVES AN INFRASTRUCTURE PROVIDER AND FACILITATOR ACROSS A DIVERSE RANGE OF OPPORTUNITIES AND PEOPLE. WE’RE NOT A STOCK-STANDARD PORT – FAR FROM IT”
– RICHARD STEVENSON, CEO, PORTS NORTH

INVESTING IN LOCAL DEVELOPMENT

As a progressive organisation, Ports North proudly facilitates opportunities for regional growth within the areas it operates.

“We recently completed a 30-year master plan for the Port of Cairns and the Port of Mourilyan to provide a framework and pathway for regional development. It supports growth in tourism, project cargo, and coastal freight opportunities,” Stevenson details.

Created in consultation with more than 100 stakeholder groups over 18 months, the masterplan demonstrates Ports North’s vision to be a successful, sustainable port operator and a valued contributor to regional prosperity.

The company’s regional activities also include the Cairns Shipping Development – an AUD$120 million project completed in 2020. It has enabled cruise ships up to 300m to regularly berth at the Port of Cairns, which has facilitated record numbers of cruise ship visits, including upwards of 90 that are scheduled to visit in 2024.

“The project has been a real success story in terms of growth in our cruise industry, and we’re beginning to see the regional benefits of our investment. Cruising is taking off globally and we’ve been prepared to make the most of opportunities in this space.”

Furthermore, Ports North’s Cityport Development, a waterfront urban revitalisation project on the eastern side of Cairns city centre, is a proof

122 | Supply Chain Outlook Issue 1 PORTS NORTH ASIA PACIFIC

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point for the company’s commitment to investing in local infrastructure.

“Our Cityport Development involved regular engagement with residents and businesses. It’s important that we engage locally as much as we can to ensure our developments meet the needs of the community,” Stevenson elaborates.

The company furthers its impact on the community by providing

secure jobs and good conditions for its employees while investing in efficiency and chasing new trade and economic opportunities.

“We are expected to operate a successful commercial business, and a core part of this is how we engage through an economic development lens with our local communities.

“As such, some of our activities may not directly impact our bottom line,

but they will respond to local issues and support long-term community development,” he explains.

SUSTAINABILITY OF THE SEAS

As a sizable and active port organisation, Ports North is ideally positioned to bring together a range of key stakeholders while embedding a sustainable approach across all areas of its operations.

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Supply Chain Outlook Issue 1 | 123 PORTS NORTH ASIA PACIFIC
“EVERY DAY IS DIFFERENT, AND EVERY DAY IS INTERESTING. CAIRNS IS A GREAT PLACE TO BE, FAR NORTH QUEENSLAND IS A GREAT PLACE TO BE, AND SO IS PORTS NORTH. I’M PROUD OF THE ORGANISATION THAT I LEAD”

Committed to environmental stewardship, the company is guided by four strategic pillars that feature in its recent sustainability strategy: planet, people, prosperity, and partnerships.

Aligned with the UN’s Sustainable Development Goals (SDGs), the four chosen themes demonstrate the company’s commitment to finding and implementing a balanced, sustainable approach to all operations.

“Being where we are – adjacent to the Great Barrier Reef – we’re acutely aware that we’re a key warden of this culturally significant seascape and strive to ensure it is protected for future generations. So, we’re very conscious that our infrastructure projects need to be sustainably delivered and our operations sustainably managed,” Stevenson reflects.

As such, Ports North continues to work closely with the Great Barrier Reef Marine Park Authority and is a member of the Wet Tropics Healthy Waterways Partnership, the Reef 2050 Advisory Committee, and the Local Marine Advisory Committee.

Moreover, the company’s Environmental Management System

– RICHARD STEVENSON, CEO, PORTS NORTH

(EMS) focuses on engaging in a range of monitoring projects to understand the physical, biological, and cultural attributes of the areas surrounding its ports. This ensures that it operates as a sustainable business that considers environmental, economic, and social impacts.

“We have a wide range of environmental programmes that we’re involved with, including long-term seagrass monitoring with TropWATER at James Cook University (JCU). We also undertake broader waste and energy reduction activities, as well as local sediment and water quality analysis and sampling,” he details.

Conscious of cultivating balance across the areas it operates, Ports North’s overall sustainability initiatives cover areas from regional prosperity, long-term planning, and business resilience to climate change and renewable energy, as well as continuing to nurture First Nations and sustainable regional partnerships.

“We’re mindful of our responsibilities as a business and the expectations of the community and our shareholders,” Stevenson surmises.

RESILIENCE AND ADAPTABILITY

In the face of adversity, such as natural disasters or economic uncertainty, Ports North’s robust operational responses confirm its resilience.

“We recently had Cyclone Jasper hit Far North Queensland hard. However, we were completely prepared, and our procedures allowed us to return our ports to operation within 24 hours,” Stevenson informs.

As a key connector to Northern Australia’s most remote areas, the ability for the company to remain resilient and responsive is critical.

Fuel, for example, can’t come into Cairns without access to the port,” he explains.

“Our business is tightly focused on positive outcomes for our stakeholders and strong customer relationships. We need to maintain a resilient response to natural disasters, so we can minimise any negative impacts.”

In addition to its operational durability, Ports North has recently engaged in some major wharf infrastructure works to maintain structural integrity against rising sea levels.

PORTS NORTH ASIA PACIFIC

“All the activities we’re undertaking from an infrastructure point of view take into account natural hazards to ensure that our ports and wharves can remain resilient for the next 50 years and beyond,” Stevenson posits. In terms of combatting economic pressures, Ports North believes that continuing to run a successful

and profitable business is the most effective way forward. Nevertheless, it works hard to ensure that costs to its end users are fair and justified.

“We spend significant amounts of time considering how we create value for our customers and how to best manage costs and inflationary challenges,” he exemplifies.

LARGE-SCALE PROJECTS AND PARTNERSHIPS

CAIRNS MARINE PRECINCT COMMON USER FACILITY (CMP CUF) PROJECT –

A Queensland state government initiative taking place on Ports North’s land, the CMP CUF provides an opportunity to diversify the regional economy and support a vital marine maintenance, repair, and overhaul (MRO) sector in Cairns.

PORT OF MOURILYAN DEVELOPMENT – As a bulk export hub, the Port of Mourilyan is ideally situated close to several mineral deposits in the city of Innisfail. A recently developed bulk commodity storage facility can accommodate mineral exports, including magnetite, silica sand, and bauxite.

Looking to the future, the company will continue to focus on pursuing sustainability opportunities while promoting stakeholder relationships and staff growth.

“We’re a diverse port operator, and a whole range of stakeholders, people, and opportunities come with that. We constantly have opportunities and challenges to pursue – it keeps us interested, excited, and able to have a significant impact,” Stevenson concludes.

CONNECTING REMOTE COMMUNITIES – Several remotely located ports create opportunities for domestic supply and trading routes. They also offer the potential for alternate and expanded minerals exports which are essential to decarbonising Queensland’s economy. Tel:

61
Supply Chain Outlook Issue 1 | 125
+
7 4052 3888 www.portsnorth.com.au

BROTHERLY CARGO BROKERAGE

Alec Vega, Chairman of AVega Bros Integrated Shipping Corporation, discusses catering for the logistical needs of the flourishing Philippine market
AVEGA BROS INTEGRATED SHIPPING CORPORATION ASIA PACIFIC 126 | Supply Chain Outlook Issue 1

The AVega Bros Integrated Shipping Corporation (AVega Bros) name is a nod to Alec, Alison, and Alexander Vega, whose father founded the company in 1981 as a cargo broker servicing the shipping requirements of the Philippines.

Alec Vega, Chairman, was the first of the three brothers to join AVega Bros, having previously worked for a

barging business.

Alison and Alexander, graduates in engineering and law, respectively, would soon follow suit as AVega Bros started out by chartering ships and acting as a shipping agent.

“We tried to own a ship, but at the time, nobody from the family was knowledgeable on the technical side of running them, so our father said that we should just concentrate on

marketing vessels because that was our forte,” Alec opens.

“We found out that there are a lot of ship owners using one or two vessels for their own trading purposes. After ferrying their products, these vessels are idled most of the time, so we gathered all these smaller shipping companies and started booking them; that way, we were able to compete with the bigger shipping firms.”

Supply Chain Outlook Issue 1 | 127

ICHS CASE STUDY – RICE TRANSPORTATION

COLLECTION FROM WAREHOUSE – Cargo is secured from the client’s warehouse for transportation. AVega Bros arrives at the initial warehouse to collect the bags of rice, which are then loaded onto trucks and secured for delivery.

PORT DELIVERY – AVega Bros’ trucks transfer the cargo to the port, where it is consolidated and prepared for its next transport. Next, the rice is brought to the port, where the sacks are checked, secured, and readied for shipment. The company’s reliable arrastre and stevedoring crew get things done in the swiftest and most efficient manner.

NATIONWIDE SHIPMENT – Using its own fleet, the cargo is shipped out to its next destination. The rice is then transported to different regions in the Philippines and closely monitored throughout the journey to ensure it is in the best condition.

DISTRIBUTION TO WAREHOUSES – Once the cargo hits land, AVega Bros delivers it to the different warehouses in the area. The rice is carefully loaded back onto trucks and distributed around the region by the company’s trusted drivers, who make sure it arrives safely and on time.

WAREHOUSE MANAGEMENT – The AVega Bros team stacks and organises the goods in the warehouse and readies them for wholesaling or further transport. As the rice finally reaches its target warehouse, the company once again evaluates to confirm that all necessary tasks have been carried out and ensure that the cargo is kept in good condition.

PACKAGING FOR STORAGE – If necessary, AVega Bros repackages cargo for storage according to its clients’ preferences. If any of the bags appear to be damaged, the team will re-bag the rice for further allocation and storage.

As the economy improved, these smaller fleets, and subsequently their client bases, were able to grow.

This eventually motivated AVega Bros to acquire its own vessel, realising its early ambition to become a ship owner, as it could no longer rely on smaller shipping companies that were now able to develop their own market.

“Economically speaking, it was better for them to go straight to their clientele rather than passing through an agent,” explains Alec.

“We therefore purchased a ship as cargo owners felt that they could get cheaper freight by dealing directly with ship owners.”

Today, the company’s fleet has expanded to include a large number of vessels, tugboats, and barges. This growing fleet is the youngest in the country and is kept in excellent shape, ensuring cargo remains in good condition.

128 | Supply Chain Outlook Issue 1

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“WE WANT TO BE COMPETITIVE, AND WE FEEL THAT HAVING A DRY DOCK WILL BE ADVANTAGEOUS FOR US WITH THE NUMBER OF VESSELS WE NOW HAVE”
– ALEC VEGA, CHAIRMAN, AVEGA BROS INTEGRATED SHIPPING CORPORATION

Along with maintaining its own fleet, AVega Bros has comprehensive agreements with a complementary network of terminals, silos, arrastre and stevedoring operators, and trucking companies operating all over the Philippines.

This enables AVega Bros to provide its clients with the complete services they require at any time of day across the country.

INTEGRATED SYSTEM

Thanks to its decades of service,

AVega Bros has acquired a vast knowledge of the Philippine logistics system, from ships and inland marine to port and terminal facilities, as well as various other elements related to cargo handling and delivery.

Through its tried and tested integrated cargo handling services (ICHS), a nationwide warehouse-towarehouse delivery system for bulk and break cargo, the company lessens impediments and enables a smoother delivery process across the country.

Able to ship cargo to any part of

the Philippines, AVega Bros’ ICHS follows a five-phase procedure that transports goods from initial storage to the destination warehouse and is flexible and easily adaptable to clients’ logistical needs.

“We deliver cargo anywhere the client wants. We provide door-to-door services for big clients that want cargo sent directly to their warehouse, whilst small clients settle for delivery on a pier-to-pier basis,” Alec outlines.

“Some shippers prefer their cargoes to be delivered directly to their warehouse because that way, they feel there’s less risk.”

Through door-to-door, AVega Bros has extended its services and therefore added value to the company’s offering.

“Why would a client choose pier-topier when there is another company that offers door-to-door service for almost the same cost?” questions Alec.

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Supply Chain Outlook Issue 1 | 129 AVEGA BROS INTEGRATED SHIPPING CORPORATION ASIA PACIFIC
Efficiency,
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AVEGA BROS SERVICES – AT A GLANCE

SHIPPING – The company provides deliveries, time chartering, and contracts of affreightment.

TRUCKING – Transporting cargo by land anywhere in the Philippines is made easier with AVega Bros Trucking Services Corp. Networks of trucks are available, operated by trusted drivers and dependable cargo checkers.

WAREHOUSE MANAGEMENT – AVega Bros provides manpower services to handle deliveries to ports and warehouses. Cargo is kept in safe hands by a reliable and efficient team.

EQUIPMENT RENTALS – The company’s cranes and full range of top-quality equipment for aiding cargo movements are available for rentals, making transporting significantly easier and quicker.

LIGHTERAGE – AVega Bros can carry out deliveries with ease, regardless of a port’s capacity. Tugboats and barges are available for port facilities that cannot accommodate large vessels.

OPERATIONS – With a deep understanding of the many hurdles associated with delivering in an archipelagic country, AVega Bros offers systematic and professional operations.

DRY DOCK PLANS

Having introduced door-to-door shipping, the next plan for AVega Bros is to have its own dry dock for ship repairs.

“We want to be competitive, and we feel that having a dry dock will be advantageous for us with the number of vessels we now have,” Alec states.

By having its own dry dock, AVega Bros will not only be more competitive, but also more efficient, as it means the company will no longer be dependent on the repair schedules of shipyards.

130 | Supply Chain Outlook Issue 1 AVEGA BROS INTEGRATED SHIPPING CORPORATION ASIA PACIFIC

“We will be able to schedule our own repairs and maximise the use of the vessel because we can programme it ourselves, so that’s the next goal.”

The important role of AVega Bros’ suppliers will be even greater once the dry dock project is complete, especially when it comes to spare parts.

“Even if the ship has already been dry docked and is ready to set sail, without spare parts, we cannot trade if there is a problem with our machinery,” notes Alec.

As the Philippines doesn’t produce steel plates, AVega Bros imports around 500 tonnes (t) of this vital product per annum from China.

This ensures that the company receives the quality it requires, as the steel plates must be able to withstand the harsh conditions encountered at sea, including high-impact forces, corrosion, and exposure to saltwater.

Going forward with quality at the fore, the main goal for AVega Bros is to expand its market and offer clients the best possible service.

“We always try to look for ways

that shippers can minimise expenses on their cargo transport, because that way, we keep them longer,” Alec concludes.

Tel: (+6332) 340-1802 marketing@avegabros.com www.avegabros.com Supply Chain Outlook Issue 1 | 131

GLOBAL SUPPLY CHAIN SOLUTIONS

With a robust global network, Kerry Logistics Oceania Pty Ltd is revolutionising the supply chain industry. We speak to Cameron Green, Managing Director for Oceania, about how the company is successfully expanding into new markets

132 | Supply Chain Outlook Issue 1

Kerry Logistics Oceania Pty Ltd (Kerry Logistics), an Asia-based global 3PL company with a highly diversified business portfolio, has made a name for itself within the supply chain industry by leveraging its strong and robust international network to provide the Oceania region with a gateway to the rest of the world.

As Oceania specialists with a deep understanding of customers’ unique requirements across Australia and New Zealand, Kerry Logistics offers services that range from air and ocean freight to land freight, industrial project logistics, and e-commerce solutions.

Cameron Green, Managing Director for Oceania, has spent over three

decades in the logistics and supply chain industry, working in various capacities, including operations, commercial, and strategic planning, before joining Kerry Logistics in 2014.

“It’s not every day that you come across a company that first and foremost has their customers’ success in mind, and that goal resonates within all layers of the organisation,” opens Green.

Inspired by the company’s leadership and innovative approach to logistics solutions, Green has taken this opportunity to continue the legacy and goals for the region.

With a highly diverse client base across a wide spectrum of industries throughout the region, Kerry Logistics’ core business is established

on decades of experience. It encompasses integrated logistics, contracted logistics, international freight forwarding, supply chain solutions, refrigerated transport, and temperature-controlled warehousing, all allowing for the company to provide a variety of end-to-end solutions for any and all customers.

“Since Kerry Logistics became a listed company in 2013, we have had incredible growth amongst competitors,” expands Green.

“We are proudly sitting now in the top 10 global freight forwarders and global ocean freight forwarders and amongst the top players for the transpacific route,” he continues.

Kerry Logistics showcases its

Supply Chain Outlook Issue 1 | 133 KERRY LOGISTICS OCEANIA PTY LTD ASIA PACIFIC

unparalleled constitution and industry leadership through its focus on technology and being the logistics operator of choice.

By supplementing its own assets with leased assets, the company operates under its own control, allowing autonomy over quality assurance and ultimately helping it become a onestop shop for supply chains worldwide.

Through its dedication to innovative and customised logistics solutions, the company is committed to helping its business partners find success.

A GATEWAY TO THE REST OF THE WORLD

With the supply chain industry currently facing unprecedented challenges due to global disruptions, it is more critical than ever for companies to guarantee service quality and reliability throughout this uncharted territory.

Despite services and price points of several routes still adjusting after the turmoil caused by the COVID-19 pandemic, and supply and demand remaining volatile while undergoing serious transformation, Kerry Logistics is taking this as an opportunity to excel.

“These challenges present an occasion for innovation and optimisation, as well as the ability to showcase to customers our value as a reliable partner with their best interests in mind,” insights Green.

“The volatility of the market and the industry in general calls for caution, but it also brings forth opportunity. Currently, we are actively expanding our network in emerging markets and investing in technology to provide more efficient and sustainable solutions.”

Facing these challenges head-on, Kerry Logistics is focusing on sustainability efforts, streamlining its

KERRY LOGISTICS

OCEANIA PTY LTD AT A GLANCE

200+ staff

NINE offices

340,000 square feet (sqft), including ambient, chilled, freezer, and bonded facilities, of warehouse space.

CERTIFICATES AND LICENSES

including HACCP, IATA, AQIS, MPI, CUSTOMS ACCREDITED, and RACA.

AIRPORTS AND SEAPORTS

including Adelaide, Brisbane, Melbourne, Sydney, Auckland, and Christchurch.

KERRY LOGISTICS OCEANIA PTY LTD ASIA PACIFIC
“WE ARE PRIORITISING CONNECTING WITH CUSTOMERS, REACHABILITY, AND TRANSPARENCY. IT IS OUR BRAND PROMISE TO EMPOWER YOUR POTENTIAL AND DELIVER SUCCESS”
– CAMERON GREEN, MANAGING DIRECTOR FOR OCEANIA, KERRY LOGISTICS OCEANIA PTY LTD

processes, and rearranging its worldwide resources to offer highquality service wherever needed.

With robust and well-thoughtout expansion plans, the company is aiming to solidify its position as a global leader in logistics.

“After our merger with SF Express, the largest integrated logistics service provider and cargo airline in mainland China, we are more prepared than ever before to exceed expectations with reliability, technology, and high service levels,” enthuses Green.

SF Express operates the largest dedicated cargo airline in Asia, with a fleet of more than 89 cargo-only aircraft.

Having recently opened Asia’s first dedicated professional cargo airport and now serving more than 85 desti nations across Asia, Europe, and the US, Kerry Logistics is looking forward to the future potential of operating a scheduled service into the Oceania market under its very own ‘Kerry SF’ banner.

TAKING SUSTAINABILITY SERIOUSLY

The future of the environment and responsible sustainability efforts are at the forefront of many business initiatives across today’s supply chain industry.

Cameron Green, Managing Director for Oceania Kerry Logistics e-Truck
Supply Chain Outlook Issue 1 | 135

KERRY LOGISTICS PRODUCTS AND SERVICES PORTFOLIO:

• Ocean freight

• Air freight

• Road freight

• DG certified

• Multimodal transportation

• Project logistics

• E-commerce

• Break bulk services

• Warehousing and distribution

• Supply chain solutions

• Customs brokerage

• Value-added services

• Track and trace

This is no different for Kerry Logistics and its mindset for a sustainable future.

Having recently won the environmental, social, and governance (ESG) Benchmark Award (silver) and the Outstanding Sustainability and Dividend Growth Award for the second year running at the ESG Achievement Awards, the company is

taking this crucial movement seriously and with an innovative and inclusive mindset.

“We are committed to reducing our carbon footprint through various initiatives, including optimising route planning and using eco-friendly vehicles. As a listed company, we also make public all our advances, initiatives, and milestones and make them available on our online ESG report,” explains Green.

With the majority of the company’s operations being paperless, and integration with systems and customers at the forefront of its initiatives, Kerry Logistics is reaching milestones when it comes to sustainable advancements.

“We partner and give preference to carriers who are executing lower or zero carbon emission programmes and monitor their developments, which we in turn share with our customers,” he notes.

In addition to these efforts for a greener future, Kerry Logistics prides itself on accumulating and nurturing its workforce to guarantee consistent high quality and an innovative culture across all fields.

“We place a strong emphasis on

workforce development to ensure our team is well-equipped to meet future challenges by providing internal and external training and continuing trainee development programmes. This allows us to expose younger members to the industry and garner their unbiased perspectives on what to improve and integrate,” informs Green.

Priding itself on being a lean company, Kerry Logistics ensures that it has the right people in the right positions, allowing the organisation to take decisive actions whenever needed, ultimately contributing to its vast growth.

“We offer internal opportunities for professional development, and our continuous growth means there is no shortage of opportunities to advance our career from within,” comments Green.

With these ideologies integrated into the company’s DNA, progression and collective development are not only encouraged throughout the business, but are evident in all aspects of day-to-day work.

LOOKING TOWARDS THE FUTURE

With innovation and the desire to continually showcase the company’s time-tested reliability and customercentric mindset, Kerry Logistics is setting a high standard in the supply chain industry.

As a 3PL company, Kerry Logistics is able to manage and coordinate the entire logistics process for its clients, offering one-stop-shop solutions for any customer with a combination of owned and subcontracted assets.

“Regardless of ownership, we act as a logistics company – having full control over the process from end to end and having our team take accountable actions to ensure results, ultimately allowing us to be highly flexible and scalable,” expands Green.

The company sustains effortless accessibility for its clients with

136 | Supply Chain Outlook Issue 1 KERRY LOGISTICS OCEANIA PTY LTD ASIA PACIFIC

Silk

“WE ARE PROUD TO BE THE FASTEST IN THE MARKET IN TERMS OF INTEGRATION PROJECTS WITH CUSTOMERS’ SOFTWARE, ENABLING US TO START AND SCALE OPERATIONS IN THE SHORTEST TIME POSSIBLE”
– CAMERON GREEN, MANAGING DIRECTOR FOR OCEANIA, KERRY LOGISTICS OCEANIA PTY LTD

platforms such as KerrierVISION, a proprietary logistics management platform that has three different layers of track and trace available depending on the amount of information the customer would like available to them.

Additionally, the organisation has recently launched KerryConnect, a newsletter with curated content on the latest freight and logistics news from Oceania and around the globe.

“Our releases cover the latest industry updates as well as insights

into our Oceania business and the Kerry Logistics network, business tips, and key data to allow our customers to stay informed and make the best decisions in the current market,” provides Green.

With all of the unparalleled advantages that Kerry Logistics offers, customers feel confident in the services and amenities offered.

The organisation’s lean and flexible structure successfully combines local expertise with the company’s comprehensive footprint and

infrastructure across the world.

Boasting a global presence across 59 countries and territories, the company has established a solid foothold in half of the world’s emerging markets and only continues to grow further.

“We aim to become the go-to brand and a standard of service quality in the Oceania market. We are working tirelessly on further improving our process, making reliability and accountability for local decisionmaking the basis to offer a highly personalised service and create a unique and satisfying customer experience,” concludes Green.

KERRY LOGISTICS OCEANIA PTY LTD

Tel:

+61 2 9695 0611

contact.sydney@kerrylogistics.com

www.kerrylogisticsoceania.com

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Logistics Holdings (ASX:SLH) is an Australian-founded, leading provider of integrated port-to-door landside logistics services in Australia. We proudly partner with some of the world’s biggest brands, leveraging tier-one technology to empower operations and deliver efficiency and customer satisfaction.
provides a comprehensive suite of supply chain solutions, operating in two primary segments: our Port Logistics business delivers wharf cartage and container value-added services, while our Contract Logistics business provides warehousing, e-commerce fulfilment, and distribution services.
Logistics
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Supply Chain Outlook Issue 1 | 137 KERRY LOGISTICS OCEANIA PTY LTD ASIA PACIFIC
Silk
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Port-to-Door For
www.silklogistics.com.au

Transformative Partnership: Kerry Logistics reshapes Outsourcing Strategy with Compliant Business Processing (CBP)

The intricacies of global logistics demand a level of precision and efficiency that can only be achieved through strategic partnerships. In this article, we explore the pivotal role played by Compliant Business Processing (CBP) in reshaping the outsourcing landscape for Kerry Logistics. Kerry Logistics is no stranger to outsourcing certain functions to maximise their service offering to their global clients. Struggling with a previous service provider in the space, Kerry Logistics turned to CBP out of desperation to elevate their service levels, initially within their Australian customs team. What ensued was not merely a solution to a specific problem but a comprehensive transformation that saw Kerry Logistics transition multiple functions to CBP across multiple countries, reaping enormous benefits from basic tasks to high-level operations.

The Prelude:

A Disappointing Customary Setback

Kerry Logistics, a heavyweight in the logistics industry, faced a significant setback in their outsourcing strategy when their reliance on another service provider failed to meet

expectations. The disappointment was felt acutely within the intricacies of customs support (within Australia), a crucial, sensitive and critical aspect of their operations. In the ever-evolving landscape of global logistics, any glitch in the customs process can have cascading effects, leading to delays, financial implications, and compromised client satisfaction.

Faced with the urgency of rectifying this situation, Kerry Logistics took a bold step by trialling CBP’s services specifically in the customs support function. The decision was driven by a desperate need to achieve the required service level and salvage their reputation in the industry. This marked the initiation of a partnership that would soon redefine Kerry Logistics’ outsourcing strategy.

A Strategic Trial: Customs Support with CBP

The trial period for customs support with CBP was not merely an evaluation of services but a litmus test for the transformative potential of strategic outsourcing. The customs team,

a critical component of Kerry Logistics’ operations, required precision, compliance, and timeliness. CBP, with its expertise in delivering specialised logistics focused outsourcing support services, rose to the occasion.

During the trial, CBP showcased a level of commitment and proficiency that exceeded Kerry Logistics’ expectations. The seamless integration of CBP’s services into their internal customs product not only addressed the immediate challenge but also laid the foundation for a more profound collaboration. The positive outcomes prompted Kerry Logistics to embark on a comprehensive procurement analysis, evaluating

CBP against other service providers across various functions.

Exceeding Expectations: A Comprehensive Procurement Analysis

The procurement analysis undertaken by Kerry Logistics was a meticulous process, evaluating service providers based on performance, efficiency, adaptability, capability and overall value. CBP emerged as the clear frontrunner, consistently surpassing benchmarks and demonstrating a commitment to excellence that set it apart in the competitive landscape of business process outsourcing.

The customs support trial served as a microcosm of CBP’s capabilities, providing Kerry Logistics with a glimpse into the transformative potential across various functions. The decision to transition every function from their previous service provider to CBP was not taken lightly but was driven by the compelling evidence of CBP’s ability to deliver results that aligned with Kerry Logistics’ operational goals and service standards.

The Holistic Transition: From Menial to Higher Order Tasks

The impact of Kerry Logistics’ decision to transition every function to CBP was transformative, extending far beyond the initial challenge in their customs team. The extent of outsourcing shifted from handling menial, basic tasks to entrusting CBP with higherorder, complex operations. This evolution was a testament to the trust and confidence Kerry Logistics had developed in CBP’s ability to not only meet but exceed their expectations.

The benefits reaped by Kerry Logistics were multi-faceted. Operational efficiency soared as CBP demonstrated agility and adaptability in handling diverse tasks across multiple departments which besides customs now includes freight forwarding operations, domestic transport, customer service and business development support. The transition allowed Kerry Logistics to reallocate internal resources,

focusing on core competencies while entrusting CBP with the intricate aspects of business processing. The collaboration empowered Kerry Logistics to innovate, optimise, and elevate their overall service offerings in a highly competitive global industry.

Conclusion:

A Symbiotic Partnership for Sustained Success

In conclusion, the collaboration between CBP and Kerry Logistics serves as a case study in the transformative power of strategic outsourcing. What began as a desperate trial to rectify a specific setback in the customs team evolved into a holistic transition that redefined Kerry Logistics’ outsourcing strategy. CBP’s commitment to exceeding expectations and

delivering unparalleled results paved the way for a symbiotic partnership that continues to thrive. As Kerry Logistics continues to experience the enormous benefits of outsourcing with CBP, the story serves as inspiration for businesses navigating the complexities of delivering the global solutions required for today’s market, yesterday. The journey from disappointment to triumph is a testament to the resilience of strategic partnerships and the transformative impact they can have on the trajectory of an organisation.

M: +61 407280155

sales@compliantbusinessprocessing.com

www.compliantbusinessprocessing.com

THE ULTIMATE JOURNEY

As trusted trendsetters in end-to-end package delivery solutions, we unwrap what makes UPS Canada stand out in a competitive market with its President, Stephanie Dexter

UPS CANADA NORTH AMERICA 142 | Supply Chain Outlook Issue 1
Writer: Rachel Carr | Project Manager: Scarlett Burke

In a global logistics industry that is expected to exceed $16 trillion by 2032, UPS’s iconic brown trucks have become a familiar sight on streets worldwide.

UPS’s Customer First, People Led, and Innovation Driven business strategy helps to move the world forward by delivering what matters across more than 200 countries and territories.

From its humble beginnings in 1907, UPS has grown to become the world’s largest package delivery company. Innovation has been central to the UPS fabric for more than a century, and today, it is foundational to the company’s business strategy.

In 1975, UPS made its first international expansion into Canada. It is now an integrated provider of

air and ground pick-up and delivery services throughout the country, with Stephanie Dexter, its first female President, leading a team of about 13,000 employees across 67 facilities and seven air hubs.

UPS Canada offers a wide range of domestic and international shipping and logistics services, including freight forwarding, customs brokerage, supply chain solutions,

Supply Chain Outlook Issue 1 | 143

UPS CANADA

and healthcare logistics. Its advanced global logistics system provides ground, air, and ocean services, utilizing a ground fleet of over 3,000 vehicles.

It serves clients of all sizes in various industries, such as healthcare, manufacturing, retail, and automotive. Its diverse client base includes large enterprises, big retailers, small and medium-sized businesses (SMBs), and micro-businesses selling on eBay, Shopify, and Amazon.

A RAPIDLY CHANGING CANADIAN COURIER INDUSTRY

The courier industry in Canada has been experiencing rapid growth with urbanization, population growth, and the rise of e-commerce and online shopping.

The COVID-19 pandemic accelerated an already rising trend, putting even greater pressure on the logistics and courier industry

to offer fast and free deliveries. However, UPS remained agile and resilient, challenging the status quo and reimagining how logistics can bolster businesses of all sizes during challenging times.

“Fluctuations in the economy, such as rising inflation and reduced purchasing power, can significantly affect the industry. Nevertheless, UPS Canada has proactively positioned itself through strategic investments, a diverse product portfolio, and a robust network to effectively navigate these turbulent times,” introduces Dexter.

“In a time when our economy is slowing, what keeps businesses competitive in today’s evolving environment are free trade agreements that strengthen economic integration and robust supply chains.

“With the ratification of the Comprehensive and Progressive

Agreement for Trans-Pacific Partnership (CPTPP) and CanadaUnited States-Mexico Agreement (CUSMA), and thanks to the Government of Canada, Canadian businesses are seeing major wins,” Dexter emphasizes.

Since these agreements were established, we’ve seen more opportunities for businesses to expand internationally, less red tape at the border, and more efficient customs procedures to keep trade flowing and packages moving across borders.

The upcoming scheduled joint review of CUSMA in 2026 offers an opportunity for the three trading partners to maximize business competitiveness across North America.

“This is an exciting time for transportation and logistics. Overall, I would say there is still much potential for growth and innovation in our sector. We are constantly evolving

AMERICA
NORTH

and adapting to find new ways to improve for the future,” she notes.

Around 95,000 small businesses open in Canada each year, which all rely upon logistics, supply chain, mapping, and delivery and return solutions. Therefore, partners such as UPS are needed to help them get started, succeed, grow, and reach international markets.

“The market is ever-changing, and consumers have spoken – they want more choice, convenience, and speed. We also see e-commerce sales in Canada continue to grow, and meeting the weekend delivery expectations of customers has become an essential part of our retail business strategy,” Dexter observes.

UPS LEADS THE WAY

In a busy and changing world, UPS Canada and international business operations have evolved to introduce new services to satisfy customer

“WE ARE PROUD OF OUR COMMITMENT TO DIVERSITY, EQUALITY, AND INCLUSION. WE BELIEVE THAT BY PROVIDING EQUAL OPPORTUNITIES FOR ALL EMPLOYEES, REGARDLESS OF GENDER, WE CAN CREATE A MORE INCLUSIVE AND SUCCESSFUL WORKPLACE”
– STEPHANIE DEXTER, PRESIDENT, UPS CANADA

expectations that were advanced by e-commerce.

In 2024, UPS in Canada introduced residential ground delivery on Saturdays in major Canadian cities through its UPS Standard service, which offers economical, day-to-day shipping.

Launched in the Greater Toronto Area, customers who normally receive their residential deliveries on a Monday will now receive them

on Saturday. As of March 2024, the service is available in Montréal, Laval, Calgary, and Greater Vancouver. Once fully implemented, the majority of Canadian addresses in metropolitan cities will be eligible to have packages delivered on Saturday.

“This service is an industry first in Canada; we are the first globally integrated national carrier in the country to offer Saturday residential ground delivery as a general service

Supply Chain Outlook Issue 1 | 145

Building Relationships

A.I. Unified Security, Structured Cabling and Electrical-integration Alive

Firstly, please introduce me to iAlive with an overview of your main products and services, locations, and client base?

Providing UPS, ELLIS DON, CINEPLEX, ArcelorMittal, Martinrea Automotive, distribution centers, manufacturing, and correctional infrastructure, we also white label our services for larger IT and security companies. Our pragmatic approach is to make buildings intelligent, intuitive, and Alive.

iAlive is an integration company based in Toronto that serves Canada nationwide. AI based security/alarm systems, access control, CCTV, facial recognition, AV systems, and network rack configurations. Of course, we bring all these together under one roof, including the design and installation of copper and fiber optic cables for infrastructure.

iAlive provides and adheres to UPSapproved and preferred product

manufacturers such as CommScope, which provides all network hardware, including branded fiber, copper cables, jacks, and patch panels. Our long-term relationships with various vendors benefit all of our clients with the latest technology solutions and services.

The operational benefit of a unified security operations platform is situational awareness – knowing what is happening and where, at any given moment, to notify operators immediately of potential security threats by combining innovative integrated solutions.

iAlive includes nature’s organic principles in its business model - backed by millions of years of substantiated proof - and adapts it to suit an ever-evolving use of technology in our world. By mimicking a system that has brought our existence this far, we can continue to grow and evolve without depleting ourselves. This inorganic technology learns with us and caters to our

comforts while protecting our environment, sustainability, and pocketbooks. At iAlive, we carry life into the future.

We are incorporating GREEN technology and LEEDS-approved, environmentsensitive, low-emission footprint products for our solutions to improve quality of life through social responsibility. At the same time, we will be conscientious of safeguarding both our natural resources and our environmental heritage by integrating the “4Rs” - reduce, reuse, recycle, and recover – in our solutions.

Could you outline iAlive’s mission, values, and ethos that underlie your digital transformation strategy?

We aim to be recognized as a leader in intelligent and innovative networked physical security products, services, and solutions by delivering outstanding value and quality to our clients and earning their respect and loyalty. We also strive to be a company that

is a great place to work and to grow as a team and a family with long-term goals.

Our core values for the recognition we receive from our clients include:

• Quality products and support for our clients and partners.

• AI-infused building self-awareness, wellbeing, and development of our teams.

• Conducting ourselves and our business practices with integrity and loyalty.

• AI integrated with innovation and cuttingedge information technology.

We strive to collaborate with you to provide custom and innovative solutions. iAlive was created with the belief that technology can break down barriers and improve users’ day-to-day lives. With over 36 years of experience in the PSIM industry, we formed iAlive in 2014. We’re always embracing and integrating new technologies to push boundaries to meet your physical security and communication infrastructure needs

and provide our clients with the tools to stay ahead in a complex, ever-changing world. We firmly believe that you get back what you give to this universe. We try to be fair with our clients, and we focus on building relationships instead of trying to make a quick buck.

I understand that iAlive is a company that prides itself on being at the forefront of technology, improving continuously, and taking initiative. Could you tell us more about this?

iAlive turnkey solutions

• AI unified security

• Situational awareness and notification

• AI face recognition, crowd detection, indoor outdoor people, and vehicle tracking

• AI CCTV analytics for quick and accurate response

• AI PSIM off-site alarm video verification with two-way audio

• AI CCTV guard tours

• ULC intrusion, fire, and medical alarm monitoring

• Cloud backup and redundant servers

• 24/7 online support and remote management

• Structure cabling and fibre

• Wireless PTP, PTMP, MESH, and last-mile connectivity

• One company, one phone number

• Consulting and design services

What makes iAlive stand out from the competition?

The power of AI and unified systems. Unified solutions are our core development focus. It empowers advancements in how our clients embrace AI and new technologies for their physical security operations.

Unified systems provide all physical security activities, functions, and data accumulated

within the same system; you can harness data flow across your security activities.

iAlive makes securing people, buildings, and assets more accessible whilst supporting operational efficiencies.

iAlive’s approach for stitching multiple systems onto one platform.

Our vision is to eliminate the redundancy and duplication that come with having many different security solutions. Our clients wanted a seamless, unified system for each security product, meaning a lot of time, cost, and effort in maintenance and upgrades to each product individually. Because of our clients, we created a physical security platform that would enable multiple products by numerous manufacturers to be unified to work as one.

How unification is different from integration.

The core goal for unified security is a suite of products developed as one unit. Different modules can be controlled on a seamless system according to changing environments. Integration is when you connect one system to another; it has its benefits, but upgrading and maintaining multiple systems isn’t one of them.

Our approach.

iAlive provides secured operations and intelligent systems, and we are always looking at new technologies to make digital systems more innovative and informative to protect our clients, assets, people, and organizations from physical and cybersecurity threats. iAlive is committed to building secure and compliant solutions; our approach emphasizes risk identification and mitigation, transparent and open communications, and working with a network of trusted partners.

Our dedicated core team is experienced and highly skilled in the industry. Our team has become a family over the years.

We offer competitive pricing while maintaining the highest standards of quality.

We have the knowledge and experience to custom-fit the solution for small to enterprise-level clients. Most importantly, we are committed to looking out for clients and focusing on future requirements and expansions in a fast-changing technology environment.

Finally, could you tell us more about your relationship with UPS Canada and what role the company’s digital transformation capabilities play in this relationship?

We have worked closely with UPS Canada to provide various services and solutions. The project included a complete network upgrade for the central HUB in Vaughan, replacing all Cat6A and fibre cables, including 195 Access Points throughout the 460,000 Square feet (sqft) warehouse.

During the holiday season 2023, we provided UPS Canada with temporary sites and expanded the Scanner capabilities at existing sites.

Other UPS Canada projects include new CCTV installation, sorting line status monitors, and complete audio-video media stations, alongside the supply and installation of cradles for backup internet. We provide a bridge between UPS and UPSpreferred manufacturers of fibre, cabling, network infrastructure and we work with the UPS IT team to assist in any capacity to provide solutions for new projects, keeping everyone informed on any new technologies or products.

+1-877-858-0777 iAliveCorp.com

offering. Canadian and US businesses have a great new way to create growth by serving customers with our Saturday residential delivery service.

“It is available to all customers of eligible origins without an extra charge or special contract,” explains Dexter.

The development is a gamechanger for businesses and consumers, as those who would otherwise receive their delivery on a Monday will now get it two days sooner. This means packages addressed to residential addresses and shipped within one or two days of transit from a designated Saturday delivery area will be eligible.

This is true for transborder packages as well, with select US transborder shipments into Canada

THE UPS FOUNDATION

also eligible for Saturday delivery.

“We are excited to see the positive impact this service will have on our customers’ growth,” says Dexter.

It is an exciting time for UPS in Canada as the company is working on several projects to improve its customer service and enhance its operational efficiency and network in major cities across the country.

“In 2020, we opened Canada’s largest sorting and delivery facility. Our flagship 850,000 square foot (sqft) facility in Caledon, Ontario, features advanced scanning and sortation technology that increases efficiency and reliability for our customers in one of the country’s fastest-growing provinces,” details Dexter.

Since 1951, the UPS Foundation’s mission and purpose has been to lead the organization’s global citizenship efforts and philanthropy, centered around four focus areas:

• Health and humanitarian relief – Leveraging partnerships and innovative logistical expertise to deliver health and humanitarian solutions to underserved and impacted communities.

• Equity and economic empowerment – Investing in organizations that address systemic education barriers and create economic opportunities for underrepresented women, youth, and marginalized communities.

• Local community engagement – Empowering people to inspire and mobilize volunteers and organizations to deliver systemic solutions and positively impact their local communities.

• Planet protection – Fostering a greener and more sustainable world.

The fully automated Caledon facility sorts up to 35,000 packages per hour and houses a fleet of more than 240 cars, including 10 electric vehicles (EVs). Paired with the Caledon hub, UPS Canada opened its 187,000 sqft facility in Ajax, Ontario, which will be fully operational by the summer of 2025, with 140 package cars servicing the area.

Both facilities will provide additional processing and service capacity in the Greater Toronto Area.

“In addition to our expansion in Ontario, we are set to open another facility in Surrey, British Columbia (BC), in the summer of 2025. It will be a fully automated facility powered by state-of-the-art sorting and scanning technology,” reveals Dexter.

The 370,000 sqft facility will be capable of sorting 20,000 packages an hour and will have 240 local delivery vehicles.

“These investments and expansions are a testament to our company’s purpose of keeping the world moving forward by delivering what matters,” she states.

EXCEEDING EXPECTATIONS

Outperforming and excelling require an exceptional team. When paired with significant investments to create seamless customer experiences and expand its network into high-growth areas like healthcare and innovative technology, UPS Canada customers take notice and the efforts are paying off.

PHILANTHROPY IN FIGURES

• 26 million volunteer recorded hours since 2011.

• 30+ disasters responded to globally.

• $69.4 million gifted in grants and sponsorships worldwide.

• $1 billion invested in alternative fuel & advanced technology.

• 31 million trees planted.

Veritably, The UPS Foundation invests in global communities with cash grants, in-kind support, and passionate volunteers. It has given more than $3 billion to communities worldwide.

“Our trusted Net Promoter Score – a metric that measures customer satisfaction – is improving at a faster pace than any of our key competitors for the most trusted brand in the industry in Canada,” voices Dexter.

What sets the company apart is a highly trained workforce that oils the wheels of a reliable integrated global network.

“Whether it is a local delivery or an international shipment, we have services that cater to businesses of all

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CANADA NORTH AMERICA
UPS

sizes across every industry, including healthcare.

“UPS has been in the healthcare business for more than 20 years, and we’re doubling down on our capabilities to meet the evolving needs of healthcare companies. We work with our healthcare customers to make their operations more precise, productive, scalable, and smart,” highlights Dexter.

UPS Healthcare is a leading healthcare logistics company, which offers full end-to-end logistics support to customers around the world. Its globally connected network of healthcare-dedicated facilities, powered by state-of-the-art digital solutions, ensures time and temperature-sensitive shipments are delivered with the utmost care. They also provide clinical trial logistics support and end-to-end lab logistics for kitting, distribution, and delivery, as well as temperaturesensitive storage and transportation worldwide.

UPS HEALTHCARE IN NUMBERS

199 healthcare distribution and transportation facilities

150,000+ healthcare customers

1,100+ cold chain ground vehicles in Europe and Latin America

10,000+ healthcare logistics professionals

420 MILLION global healthcare shipments

8.7 MILLION sqft controlled room temperature

200,000+ direct-to-patient shipments

When UPS Premier was launched in Canada, this enabled customers to have end-to-end visibility for critical packages such as insulin. The technology utilizes priority lanes throughout the UPS network, which is crucial to ensure patient-critical products are delivered where they need to be, at the right time and at the right temperature.

“Healthcare expands beyond our small package business to UPS Supply Chain Solutions in Canada and supports the delivery of complex healthcare through cold-chain and temperature-controlled deliveries,” she tells us.

When you look at the future of healthcare, it’s all about innovations in biologics, specialty pharmaceuticals, and personalized medicine. These products make up most of the new products in development and are driving significant demand for precision logistics. UPS has and can support treatments from clinical trials right to the patient.

“We’ve been investing to meet those needs for a long time, building out a ‘network within a network’ to ensure we provide the best quality, end-to-end service on the market. We are continuing to aggressively expand into some of the largest and quickestgrowing healthcare markets in the world,” she sets out.

When the COVID-19 pandemic first hit in 2020, it was no surprise that UPS had the network and capabilities to deliver vaccines throughout Canada. The company proudly delivered all supplies of the leading vaccine manufacturer COVID-19 vaccine in the country.

UPS customers are reaping the benefits of strategic investments that help streamline operations and increase efficiency, resulting in an enhanced experience.

“We continue to improve the digital experience and deliver the solutions our customers expect. We have several new products that will

help improve customer satisfaction,” Dexter divulges.

SUPERCHARGING DIGITAL TRANSFORMATION

At UPS, customers are reaping the benefits through strategic investments that are helping to streamline operations and increase efficiency, resulting in an enhanced experience for anyone using the service.

Technology, in particular, is revolutionizing many industries, and the package delivery services sector is no exception.

“As an organization, we combine digital solutions with our global integrated network to create more value for our customers and new revenue opportunities for UPS,” Dexter imparts.

In 2022, UPS introduced the International Dispatch Optimization (IDO) technology, a game-changer

that serves as the foundation for future enhancements in package delivery.

It has deskilled sorting operations and driver navigation features. IDO offers new features for customers that we are currently testing, such as time of delivery windows and Follow My Delivery – which is near real-time visibility of where their package is on a map, taking their experience to the next level.

“In Canada, we have utilized radio frequency identification (RFID) and smart package labels to provide real-time visibility of packages in our facilities,” she details.

This proactive approach allows the operation teams to quickly identify and resolve any issues, improving accuracy and efficiency in their operations.

“Our next-generation brokerage services are another innovative

152 | Supply Chain Outlook Issue 1 UPS CANADA NORTH AMERICA

solution that simplifies the brokerage and export process. By applying machine learning (ML) and artificial intelligence (AI), we save time, reduce errors, and improve the overall customer experience.”

UPS’s advanced brokerage services, including UPS Paperless Invoice, enable customers to electronically submit trade and customs documents, making life easier for customers exporting goods.

This paperless approach reduces the need for manual processing and minimizes customs holds. Additionally, it eliminates millions of paper documents from the shipping process, delivering a positive impact on the environment.

Constantly innovating and leading the way with digital customs solutions, such as UPS Paperless Invoice, the organization is simplifying the clearance process in a

labor-saving manner.

“With technology as our ally, we are confident in our ability to upgrade and enhance our services to benefit our customers and deliver seamless high-visibility shipping and tracking,” Dexter points out.

MOVING TOWARDS A CARBON-NEUTRAL WORLD

Fleets, whether operating by land, air, or sea, are essential to the supply chain and logistics industry. With a global footprint in over 200 countries and territories, UPS has seen how climate change, air quality, and other socioeconomic challenges intersect.

The organization is committed to lowering its carbon footprint financially and socially responsibly. Indeed, it has committed to achieving 100 percent carbon neutrality by 2050, with clear goals and plans to reduce emissions across its operations.

INTERESTING FACTS ABOUT UPS

• UPS stands for United Parcel Service.

• Beginning its journey as American Messenger Company, it changed its name to United Parcel Service in 1919.

• In 2003, the organization officially changed its name to UPS.

• The iconic brown color synonymous with UPS’s trucks and uniforms is called ‘Pullman Brown’, after the luxury railroad cars of the Pullman Company, and it represents class, sophistication, and professionalism.

• While brown is the distinguishing feature of UPS vehicles, it has been reduced to a secondary color for UPS planes next to white to reduce heat absorption and save weight in the air.

• In 1975, UPS became the first package delivery company to serve every address in the continental US, giving it an epic nickname – the ‘Golden Link’. In the same year, the organization went international and offered its services to Toronto.

• There is a no-left-turn policy for UPS drivers unless it is unavoidable. By favoring righthand turns, the trucks save millions of gallons of fuel each year, thereby avoiding emissions equivalent to over 20,000

Supply Chain Outlook Issue 1 | 153

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North America Outlook (NAO): Please introduce us to InLight Solutions, e.g., an overview of your main products, services, solutions, and locations.

Stefan Pacula, President, InLight Solutions (SP): ‘‘InLight Solutions is a “turnkey” B2B electrical contracting business specializing in LED lighting retrofits. Our “turnkey” service includes an initial lighting assessment, LED lighting solution report, rebate administration, design, fixture purchasing, project management, and installation. We are a onestop shop!’’

NAO: Can you elaborate on what it means to be one of the few companies that offers a national turnkey lighting retrofit service and how this helps to distinguish you from the competition?

SP:‘‘Geographically, Canada is the second largest country in the world; therefore, most electrical contractors are only regional players. Our national clientele want a standardized lighting solution for multiple facilities along with a single point of contact, which only a national company can provide. InLight has completed over a thousand

retrofits from Victoria, BC, to Cornerbrook, Newfoundland.’’

NAO: I understand that you offer LED retrofitting to your clients, can you expand on the benefits this service offers and why potential clients should be interested?

SP:‘‘The first major benefit to retrofitting facilities with LED lighting is energy savings, as LEDs use up to 70 percent less energy than older technologies like metal halide and fluorescent. The second major benefit is durability, as LEDs last three to five times longer drastically reducing maintenance costs. Also, LEDs provide a brighter, safer, and more productive work environment for our client’s employees. The bottom line is that LED retrofits are sustainable and generally pay for themselves in less than five years.”

NAO: Could you elaborate on your partnership with UPS Canada? How do the two companies mutually benefit each other, and what complementary strengths do you bring?

SP:‘‘InLight completed LED lighting retrofits for 11 UPS facilities across Canada in 2023.

NAO: Are there any recent projects that you would like to highlight?

SP:‘‘The transformation of UPS’s Hamilton Airport warehouse retrofit was amazing! The light level increase has provided the employees with a safe, and productive work environment for many years to come!’’

UPS had precise engineering standards for light levels and design that InLight was able to meet and replicate across multiple locations. InLight’s expertise in provincial rebate applications reduced capital costs and increased ROI for many of these projects.’’

NAO: Looking ahead, what are InLight Solutions’ key priorities?

SP: ‘‘InLight will continue to engage with its clients to further reduce energy consumption, modernize their workplaces, and provide state-of-the-art long term lighting solutions.’’

Before After InLight Solutions Inc. (905) 857-7705 sales@inlightsolutions.ca www.inLightsolutions.ca

Overall, UPS strives to reduce its CO2 per package delivered by 50 percent by 2035 (2020 base year).

To date, UPS has driven more than three billion miles using alternative fuel worldwide and aims to achieve 40 percent alternative fuel in its global ground operations by 2025. Meeting this goal includes a mix of EVs on the road and electric shifters to move trailers within their yards.

Other targets include achieving 30 percent sustainable aviation fuel in its air network by 2035, reaching 25 percent renewable electricity in facilities by 2025, and 100 percent by 2035.

“We have a strong focus on renewable and biofuel solutions as we see these low-carbon fuels as a bridging solution that will reduce greenhouse gas (GHG) emissions as we transition our fleet to zeroemission vehicles.

“Our company has been investing in alternative fuels for over 20 years, and currently, approximately 24 percent of our Canadian ground fleet runs on alternative fuels, including 133 compressed natural gas (CNG) vehicles, with 76 more arriving this year,” Dexter confirms.

UPS Canada understands the importance of reducing its carbon footprint and has prioritized incorporating alternative fuel and EVs into company operations, continuously expanding its fleets yearly.

“We constantly explore innovative solutions and collaborate with stakeholders in pursuit of our global goal of carbon neutrality by 2050. We are excited to welcome 20 new EVs to our hubs in Ontario and BC this year.

“By prioritizing alternative fuels and investing in advanced technology, we can significantly impact environmental sustainability in the transportation industry,” says Dexter optimistically.

PAVING THE WAY FOR FUTURE LEADERS

As a traditionally male-dominated industry, logistics and delivery companies are recruiting more women to occupy executive positions and operational roles.

Women have made significant strides in UPS’s 117-year history. Although the organization was founded by two men, it is now under the leadership of its first female CEO, Carol Tomé.

During World War II, women were actively recruited to fill vacant jobs in the company’s operations, from sorting parcels to loading and cleaning vehicles. Indeed, in 1943, Mazie Lanham became UPS’s first female delivery van driver.

‘Brown Betty’ was the term used for any woman working outside the office during World War II, derived from the nickname ‘Brown Buddies’ given to

male UPS drivers and helpers.

Continuously progressive and ahead of its time, UPS employed Arlene Westermeyer as its first female pilot for its newly founded airline in 1988.

Today, three members of UPS’s C-suite are women; furthermore, the UPS Board of Directors is currently comprised of 42 percent women. This ratio is far above that of any other Fortune 50 company.

Among UPS’s many prestigious awards and recognitions, Financial Times added Tomé to its annual Woman of the Year list, recognizing the world’s most influential women.

Delving deeper into how UPS supports women, in 2022, it launched its Proudly Unstoppable initiative, which was designed to empower female-owned small businesses worldwide.

Financial exclusion can be

SUPPLY CHAIN OUTLOOK: IN A HIGHLY COMPETITIVE MARKET, WHAT DIFFERENTIATES UPS CANADA FROM OTHER

COMPANIES IN THE INDUSTRY?

Stephanie Dexter, President: “We have UPS MyChoice, an industry-leading inbound and outbound shipment visibility and delivery control app. This gives customers more control over their shipments, including when and where they will receive them. On the flip side, flexible returns are an option, allowing customers to streamline and elevate their experience. Furthermore, with UPS Delivery Photo, customers no longer have to guess when and where their packages were delivered – they can receive photo confirmation for added peace of mind.

“Another convenient service we offer is the UPS Access Point Network, which provides customers with over 1,200 secure pick-up and drop-off locations in Canada, including The UPS Store. This allows customers to easily access their delivery at a location that is safe for their package and convenient for them.

“In 2024, we are also testing new services like UPS Follow My Delivery, which provides customers with pre-delivery notifications and map-based tracking. This level of transparency and communication helps customers plan with confidence and eliminates any uncertainty about the status of their package.”

156 | Supply Chain Outlook Issue 1 UPS CANADA NORTH AMERICA

challenging for women entrepreneurs who are trying to access capital to start, operate, or expand their businesses. The Proudly Unstoppable campaign strived to negate the obstacles posed to women by partnering with WeConnect International, an organization that provides financial assistance to female-owned small businesses.

Through the partnership, UPS ended up awarding 10 grants in each country to women-owned small businesses. Support was also squareshaped, in the form of specially designed, limited edition UPS Express

Boxes featuring the work of three female artists from Canada, China, and Germany.

Additionally, since 2018, UPS has supported over 17,000 female small business owners around the world to scale globally through the Women Exporters Program. At the same time, the UPS Ignite Program gave out $100,000 in grants in 2022.

Unquestionably, the organization is doing its utmost to ensure that gender disparity is addressed and rectified in the logistics industry and business community.

Another notable achievement within the organization was the announcement that appointed Kate Gutmann to a newly created role as Executive Vice President and President of International, Healthcare, and Supply Chain Solutions in 2022.

AN EMPOWERING APPROACH

Before Dexter became the first female President of UPS Canada, her journey with UPS began in 1989 when she started as a package handler in Southeast California. Through hard work and determination, she took on various roles in industrial engineering, human resources, and operations, eventually earning the title of Laguna Package Division Manager in 2007.

Dexter continued to grow within the company, taking on different assignments in hub, air, and package operations in South and Central California. In 2015, she was promoted to package operations manager for the South California District, but her ambition didn’t stop there.

In 2016, she took on a new challenge as the UK, Ireland, and Nordics District Package Operations Manager. After gaining valuable international experience, she returned to the US in 2018 and became the president of the Northern Plains District.

Dexter’s impressive resume includes a bachelor’s degree in political science with a minor in economics from San Diego State University and an MBA with a concentration in finance from Louisiana State University, Shreveport. She has also completed the Executive Development program at Emory University and the International Executive Development program at INSEAD in France.

Dexter’s journey with UPS is an inspiration to all, especially to young women looking to break barriers and achieve their professional goals.

It was an honor for UPS to be recognized as the top transportation company for women by the Women in Trucking Association (WIT).

The non-profit organization (NPO) aims to encourage female employment in the trucking industry, promote their accomplishments, and minimize obstacles.

Furthermore, WIT welcomed UPS as its newest Gold Level Partner last year, aiding its mission to empower more women to pursue careers in transportation.

UPS Canada is also providing opportunities, facilitating career advancement, and promoting gender diversity.

“We are proud of our commitment to diversity, equality, and inclusion. We believe that by providing equal opportunities for all employees, regardless of gender, we can create a more inclusive and successful workplace. Our Women’s Leadership Development (WLD) group is just one of the many ways we are working towards this goal,” Dexter prides.

The WLD program at UPS is dedicated to empowering women and promoting their advancement within the company. With a presence in over 30 countries, WLD serves as a platform for women to voice their ideas and contribute to business innovation and growth. Through

“AS AN ORGANIZATION, WE COMBINE DIGITAL SOLUTIONS WITH OUR GLOBAL INTEGRATED NETWORK TO CREATE MORE VALUE FOR OUR CUSTOMERS AND NEW REVENUE OPPORTUNITIES FOR UPS”
– STEPHANIE DEXTER, PRESIDENT, UPS CANADA

various initiatives such as workshops, mentoring, and networking, the program equips women with the necessary skills and support to excel in their careers.

This emphasis on female leadership is crucial, as it allows women starting their careers at UPS to envision themselves in traditionally maledominated roles and realize their potential for growth within the organization.

“We have a strong commitment to our people-led initiatives, which is one of our core values. This means that all management at UPS Canada has a role in identifying potential leaders and building talent within the organization.

“Our leadership model is built on these principles, and we practice them daily to ensure that all employees have equal opportunities for career advancement,” Dexter asserts.

INVESTING IN WOMEN-OWNED BUSINESSES

UPS and The UPS Foundation launched the Women Exporters Program (WEP) in 2018 to address the disparity between men and women regarding education and workforce participation. The program provides targeted assistance to female-owned SMBs worldwide. Women-owned businesses account for almost one-fifth of all private sector businesses in

158 | Supply Chain Outlook Issue 1 UPS CANADA NORTH AMERICA

Canada. However, they are still underrepresented in terms of export activity, which creates a huge opportunity for growth.

“We saw a need to help bridge the gender gap in education and export participation, so we’ve partnered with Startup Canada, an independent NPO, to expand and provide the tools and training to assist women-owned businesses grow globally,” Dexter highlights.

THE UPS STORE – THERE’S ONE NEAR YOU!

The concept of The UPS Store was introduced in 1980 as Mail Boxes Etc. At the time, it was a convenient alternative to the post office. In 2001, UPS acquired the company, and two years later, the brand as we know it today was launched. The centers remain locally owned and operated and continue to offer a variety of world-class services.

With 370 convenient locations across Canada, The UPS Store provides convenient and value-added services for small businesses and customers, which include shipping, packaging, printing, shredding, passport photos, notary services, and postal services for individual consumers and small businesses. Additionally, many The UPS Store locations offer computer rental workstations and graphic design services.

Indeed, small business owners can expect a one-stop shop that provides services such as a street address with 24-hour access for package acceptance from all carriers, package and mail receipt confirmation, mail forwarding and holding, and Call-In MailCheck for quick and easy delivery updates.

Throughout its evolution, The UPS Store has continued to define and lead the business services category it has created.

As of January 2023, WEP has trained over 107,000 female SMB owners all over the world.

“WEP provides tools, training, and networks to help womenowned SMBs connect with potential customers globally through international trade and e-commerce.”

As part of the program, women gain valuable knowledge about exporting, from market access to regulatory considerations. Furthermore, they receive advisory support from small business associations, UPS partners, and Startup Canada mentors and advisors, connect with UPS ambassadors, and are eligible for in-kind shipping credits and special shipping discounts from the company.

“So far, we have had 150 participants from across the country attending webinars addressing the ‘why’ and ‘how’ of exporting, including a walk through the process. We want to change the narrative that you must be a big business to export your products when you just need the correct tools,” she outlines.

UPS’s partnership with Startup Canada goes beyond WEP, as through the affiliation, it reaches over 100,000 entrepreneurs across the country.

160 | Supply Chain Outlook Issue 1 UPS CANADA NORTH AMERICA
Stephanie Dexter provides opening remarks at Startup Canada’s Startup Day in Ottawa, Ontario
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The courier company works with Startup Canada on its Startup Women, Startup Canada Tour, and Startup Gov programs. Participants in WEP additionally have access to connect and engage with Startup Women and Startup Global leaders.

“We are focused on helping small businesses succeed and grow; therefore, our partnership with Startup Canada has been invaluable in enabling us to reach more SMBs,” expresses Dexter.

Startup Canada supports the various needs of SMBs, including connecting them with partners like UPS that have the resources and infrastructure to help them succeed.

“We love to help train, empower, and deliver services to SMBs that give them a competitive edge. Our superior standing in the US market, for example, enables SMBs to expand their footprint outside of Canada with the assurance of visibility tools and excellent service,” Dexter elaborates.

DELIVERING WHAT MATTERS

By October 2020, over 40 percent of Black-owned small businesses were forced to close due to the COVID-19 pandemic. In response, UPS launched a campaign in 2021 to celebrate the power and uniqueness of minorityowned SMBs.

UPS strongly believes in the vital role played by SMBs in shaping local communities and driving the global economy. In line with this belief, Proudly Unstoppable was incepted to showcase UPS’s unwavering support for SMBs. Through this initiative, UPS aims to demonstrate that it is not solely focused on serving large businesses, but actively seeks to empower and support SMBs.

The Proudly Unstoppable initiative reached Canada, China, and Germany to support diverse-owned businesses disproportionately affected by the COVID-19 pandemic. It was designed to empower women-owned SMBs around the world, helping them grow and thrive.

UPS AIRLINES

For UPS, the origin of transporting packages by air dates to 1929, and similar to the US Postal Service (USPS), packages were treated as baggage on commercial flights. However, the service was discontinued after Black Tuesday and the beginning of the Great Depression.

Picking up again after World War II, UPS offered a two-day delivery on coast-tocoast packages. Beginning in 1953, the service was called Blue Label Air. Just as they were previously, packages were transported on commercial flights. Initially unprofitable, it became popular as its speed created demand.

However, it wasn’t until 1988 that UPS established its airline, winning approval from the Federal Aviation Administration (FAA) to operate its aircraft, launching UPS Airlines. The cargo air hub is based in Louisville, Kentucky, and is one of the largest freight airlines in the world, flying to 815 destinations worldwide.

The 5.2 million sqft facility at Louisville International Airport is the primary hub, known as UPS Worldport. Additionally, the organization has several secondary hubs across the US, Canada, Europe, and the Asia Pacific region. UPS Canada has 88 daily flights and seven air hubs.

UPS Next Day Air became the first air delivery network to reach every address in the 48 contiguous states, as well as Hawaii and Puerto Rico, in 1985. The organization also began its first intercontinental air service between the US and Europe.

Today, the fleet comprises aircraft including the Boeing 757-200F, 767-300F, 747-400F, and 747-8F, the Airbus A300-600F, and the McDonnell Douglas MD-11F, serving more than 220 countries using a combination of over 500 UPS and chartered aircraft.

Furthermore, every aircraft in UPS’s fleet meets the strictest noise reduction standards both domestically and internationally. It was the first major airline in North America to reach full compliance with the new noise rules. In line with passenger airlines, UPS operates under the hub-and-spoke model for its distribution network.

162 | Supply Chain Outlook Issue 1 UPS CANADA NORTH AMERICA

DELIVERING WHAT MATTERS TO UPS CANADA

We’re proud to support UPS Canada with our industry leading Trace and X-Ray Detection Technologies backed up by our Global Support team, ensuring UPS delivers what matters to their customers safely & securely.

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Specially designed, limited edition UPS Express Boxes feature the artwork of three female artists from each country the initiative reached. It was the first time UPS has displayed art on its boxes in over 118 years of business.

After shining a light on Black-owned SMBs, the Proudly Unstoppable campaign was expanded to support SMBs with LGBTQIA+, Latinx, and Asian American and Pacific Islander (AAPI) ownership.

The company ran a campaign aimed at supporting SMBs owned by minorities, showing them how they could succeed and thrive in their chosen market with the help of UPS’s expertise and their own passion. The campaign featured online videos encouraging SMB owners to be bold, be brave, and be unstoppable.

Financial exclusion presents a significant challenge for female entrepreneurs as they try to access capital to start, operate, or expand their businesses. Through efforts

such as Proudly Unstoppable, UPS continues to help women obtain resources as the campaign strives to make a tangible impact.

The artists were offered essential information to effectively illustrate the power of women supporting and lifting each other up. For instance, Marian Bantjes, a Canadian artist, boldly portrayed a pattern of women holding hands, symbolizing the undeniably strong values of connectivity, unity, and community.

Meanwhile, Chen Peng, an artist from China, shows the vital role of Chinese women in society, with SMB owners from different professions helping and supporting each other, whilst German artist Dani Pollehn rendered the hero in a confident and charismatic manner, wearing a vibrant coat which embodies her success.

UPS is a driving force in promoting diversity and inclusivity and is committed to creating a world where everyone is valued and respected.

By prioritizing these values, UPS is not only positively impacting its employees and customers but also setting an example for other companies to follow. There is no doubt that UPS is moving the world forward towards a brighter and more equitable future.

THE FUTURE IS BRIGHT

UPS Canada looks to improve its customer value proposition each year, increasing talent development and employee engagement and leveraging its physical network with a digital platform to drive logistics as a service.

“We are focused on driving growth and creating value for our customers across the Canadian network to stay ahead of the ever-changing logistics landscape. We will achieve this through new digital products and expanded service offerings, including Saturday delivery, adding capacity to our network, increasing

164 | Supply Chain Outlook Issue 1 UPS CANADA NORTH AMERICA

Your Partner in Sensor Technology for Courier Operations and Beyond

Logistics companies all have the same automation challenges. And as the top courier provider in the world, SICK Sensor Intelligence enhances efficiency, accuracy, and automation to help alleviate these challenges in package handling processes.

While SICK’s portfolio boasts over 40,000 products, our goal is not to just sell product. With decades of experience in track and trace systems, SICK aims to truly impact the entire infrastructure of your operations, like what we’ve done in partnership with UPS— one of the largest track and trace partner in UPS’s logistics infrastructure.

What does such an impact on infrastructure actually look like? This usually means enhancing overall visibility. SICK delivers complete sensor system solutions and services for integrated facilities, the enterprise level within, and across enterprises. We bridge the gap between sensors and IT and securely integrate into the customers’ eco-system on both a machine and process level.

As leading package and freight logistics service providers are seeing growing flows of goods and parcels, automation is becoming a necessity to keep up. And SICK is a triedand-true partner for many logistics providers as they work to keep up with the pace of an evolving industry. If you work with SICK, you may see things like:

• An increase in the throughput of your sorting center: this is accomplished with read systems that deliver reliable data, even at very high conveyor speeds

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• Fast and reliable code reading with intelligent software and top-of-the-line cameras

• Software enhancement on track and trace systems, including side-by-side detection, hazmat recognition, and parcel classification

This is not an exhaustive list, but you get the gist: SICK is a leading provider of sensor-based solutions to solve your problems. You can also rely on a worldwide team of experienced SICK service technicians and their many years of industry knowledge. SICK’s service team wants to find answers to your questions and will work with you to design smart sensor solutions tailored to your logistics processes.

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efficiencies through automation, and growing our volume of packages to create more jobs,” Dexter reveals.

Currently, it is an exciting time for UPS Canada as the company is working on several ongoing and upcoming projects to improve its customer service and enhance its operational efficiency across the country.

Guided by its values and driven by innovative strategies, the future of UPS Canada is as promising as ever.

“We will continue to lean into the parts of the market that value UPS’s integrated end-to-end network, focusing on speed, service, and customer experience. These are areas that do and will continue to differentiate UPS Canada and the wider organization from the competition,” concludes Dexter.

With nearly 50 years of delivering quality service in Canada, the company has much to look forward to in the future, with sustainability initiatives, women in business

“WITH TECHNOLOGY AS OUR ALLY, WE ARE CONFIDENT IN OUR ABILITY TO UPGRADE AND ENHANCE OUR SERVICES TO BENEFIT OUR CUSTOMERS AND DELIVER SEAMLESS HIGH-VISIBILITY SHIPPING AND TRACKING”
– STEPHANIE DEXTER, PRESIDENT, UPS CANADA

programs, and the implementation of its new Saturday residential deliveries with its UPS Standard service. UPS Canada is strategy-driven and people-led, and as customers want a trustworthy and reliable courier service, the company will continue to innovate and uphold its standards.

A BRIEF HISTORY OF UPS

UPS Founder, Jim Casey, left school at age 11 in 1899 due to his family’s financial struggles and began working as a delivery boy in Seattle. He worked for a department store before moving on to a tea store. After two years, he decided to work as an

American District Telegraph (A.D.T.) messenger boy while returning to school. With his younger brothers also working, they were able to support their family after their father fell ill and died. Their mother managed the household alone with prudence and frugality, providing them with clean clothes and warm meals despite their varying schedules. Inspired by his mother’s ethics and encouragement, Casey returned to seventh grade with ambitions of attending Yale or Harvard like President Theodore Roosevelt; however, he only made it halfway through high school while still working long hours at A.D.T., including

UPS Canada’s vehicle fleet includes 10 EVs 166 | Supply Chain Outlook Issue 1 UPS CANADA NORTH AMERICA

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night shifts during summer vacation.

During his time at A.D.T., Casey worked under Frank Edwards, who later became Mayor of Seattle. His first job was to carry a heavy bag for a lady to a suburban car terminal. As an A.D.T. messenger boy, Casey had many experiences dealing with different people and circumstances. His tasks varied greatly: delivering telegrams; waking up engineers and firemen in the middle of the night for emergency railroad runs; carrying trays of food from restaurants to hotels; delivering written messages before the extensive use of telephones; collecting mail from post offices; running errands for retail stores; fetching bail money for prisoners in jail; transporting pitchers of beer from saloons to homes (“rushing the growler”); and even babysitting in hotel rooms while parents attended theater shows.

During the gold rush era, Seattle was the main port for Alaska-bound miners who spent winters there due

to harsh mining conditions. These miners often carried bags of gold dust and nuggets which they spent freely while waiting for spring. As Jim walked through rainy streets on his errands, he envied these men sitting comfortably in hotel lobbies dreaming that one day he could do the same.

Casey, along with two fellow messengers, left A.D.T. and started their own messenger business. They relied on telephones for communication as they were becoming more common at that time. After nearly two years in this business, they sold it to seek fortunes in Nevada’s gold fields. In Goldfield, Nevada, instead of finding gold, they established a messenger service where they did all the work themselves. This venture lasted over a year despite interruptions and changes in partnership. After leaving Goldfield without any fortune, Casey returned to Seattle where he was invited to establish another messenger service due to his

experience. At 19 years old, he had to start anew.

In August 1907, Casey and his partners started the American Messenger Company in Seattle. They rented a small space under a sidewalk next to a saloon for $25 per month (later reduced to $15) and equipped it with an old counter, two telephones, and a bench for their five or six messenger boys. The company advertised as offering the “Best Service - Lowest Rates”, which was challenging given the competition. They carefully selected reliable boys who lived at home with their parents and provided them with uniform caps. Instead of promising immediate service when they couldn’t deliver, they gave honest estimates of delivery times. Despite few calls initially, they stayed open all night and on Sundays to ensure reliability. The rate for short trips was 15 cents, but they established zone rates up to 65 cents for distant trips. Large customers were offered

Supply Chain Outlook Issue 1 | 167 UPS CANADA NORTH AMERICA

monthly discounts based on volume.

To reduce costs further and attract more business from retail stores, they began consolidating deliveries on regular schedules in 1913 using one Ford car and several motorcycles. Their corporate name changed to Merchants Parcel Delivery, reflecting this shift in focus, and later became United Parcel Service. After realizing that there were only a few successful parcel delivery businesses across the US, Casey concluded that success would require innovative ideas beyond what others had done before.

Preceding the creation of UPS is the rich history of the courier industry,

which dates back all the way to ancient Egypt when letters would be sent in a box down the River Nile, escorted by a guard.

The world’s first sophisticated postal service can be traced back to 521 BCE when Cyrus the Great is believed to have set up roads to transport general mail between his citizens and neighboring cities.

The word ‘courier’ originates from the Latin ‘currere’, which means ‘to run’, and marathon refers to the Greek messenger Pheidippides, who ran 26 miles to Athens after the Battle of Marathon to announce their defeat of the Persians. After promptly dying

on arrival, he was memorialized in marathon events we see today.

Horses eventually replaced couriers on foot, with Greeks and Romans making deliveries by horse and chariot the most common method.

Nevertheless, being a courier is one of the oldest professions in the world. It became a vocation in the Middle Ages and evolved as royal courts began to pay messengers to deliver letters.

Today, communication via mail is disappearing, with modern technology connecting people globally, quickly, and efficiently.

Still, being a courier wasn’t for the faint-hearted. During the US Civil

168 | Supply Chain Outlook Issue 1 UPS CANADA SUPPLY CHAIN
UPS Canada facility at Ajax, Ontario

War and the Louisiana Purchase, the California Gold Rush brought 300,000 people from throughout the country and overseas to the Sierra Nevada mountain range.

At this time, The Pony Express was incepted, shipping packages from the East to the West Coast in just 10 days by horseback rather than stagecoach, transforming the courier industry.

Although the service was credited for its speed and efficiency, technological advancement soon replaced it.

Before the mid-1800s, there weren’t any actual courier companies with a broader network in the US. The first nationwide and international

delivery business established in the country was Wells Fargo in 1852, who transported payments and valuables by steamboat and stagecoach, which, by today’s standards, weren’t very timely or reliable.

In 1918, the first shipment was transported by air from the US at a time when packages were mostly sent via train, truck, or motorcycle. In the same year, the first official airmail flight was made in Canada from Montréal to Toronto.

Leading the way, Winnipeg installed equipment that automatically segregates, stacks, and cancels mail –the first of its kind in North America.

Meanwhile, in the UK, between 1927 and 2003, the London Underground was used as a courier service called ‘Mail Rail’. Although it had a long run, it was eventually phased out as it became much more expensive than modern courier services.

No matter how mail and packages are delivered, couriers hold a special place in US history. Spanning from 1775, when Paul Revere, known for his Midnight Ride, rode through the towns of Lexington and Concorde on horseback to warn residents of the approach of the British militia, to the current integrated technology that is key to a modern-day, efficient delivery system.

Supply Chain Outlook Issue 1 | 169 UPS CANADA NORTH AMERICA
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MOVING THE WORLD

We speak to Rob Walpole, Vice President of Delta Cargo, about how the company reaches hundreds of destinations and carries thousands of shipments a day while offering first-class operational performance and customer service Writer: Lauren Kania | Project Manager: Scarlett Burke

DELTA CARGO NORTH AMERICA 174 | Supply Chain Outlook Issue 1

It is undeniable that everything is seemingly moving faster these days, and shipping is no exception.

With the rapid globalization of today’s world, the safe and reliable transportation of goods worldwide is of paramount importance to the global economy.

The impact of the cargo and logistics industry has far-reaching international effects that influence each and every sector.

A longstanding player in this key industry is Delta Cargo, paving the way for innovation and growth alongside its time-tested reliability and exceptional standards for service excellence.

With a history that spans nearly a century, Delta Cargo has worked tirelessly to build a reputation for world-class handling, efficient operations, and speedy processing, regardless of the type of cargo.

Supply Chain Outlook Issue 1 | 175
Rob Walpole, Vice President

DELTA CARGO’S COMPREHENSIVE PRODUCT PORTFOLIO

Aside from general cargo, the company offers tailored services to support unique needs, including:

TIME-SENSITIVE – DASH and Express product lines offer expedited shipping at various service levels. DASH Critical is often used to ship organs and critical medical products.

TEMPERATURE-SENSITIVE – Pharma and Fresh product lines offer specialty handling and temperature-controlled facilities for goods such as pharmaceuticals, seafood, and produce.

HIGH-VALUE AND VULNERABLE –The Safe product line offers special handling for goods requiring extra care and security, like artwork, antiques, or jewelry.

LIVE ANIMALS – Specially trained ground handlers offer personalized care for a range of commercial animal shipments, such as birds, live fish, and exotic animals.

The company provides top-notch cargo services and specialized handling for a variety of customer needs, transporting everything from fresh flowers to life-saving pharmaceuticals and organs for transplant via Delta Air Lines’ (Delta) extensive network.

With the air cargo industry cemented as a key component of the fast-paced global economy now more than ever, Rob Walpole, Vice President of Delta Cargo, delves into the ways the company continues to evolve its business, leveraging the great opportunities technological development can offer to progress the industry, while still remaining true to its origins by ensuring that its customers and the safety of their products are always at the forefront.

GETTING TO KNOW DELTA CARGO

Walpole has been a part of the Delta Cargo team since 2019 and is

responsible for the growth, profitability, and operational performance of the industry-leading business.

A native of Australia, Walpole has an extensive and diverse experience within the supply chain industry. He spent the first part of his career in a variety of manufacturing and supply chain leadership roles in the downstream energy business at Exxon Mobil, spurring his interest in the supply chain industry. Located in Singapore for eight years, he led the Asia-Pacific logistics and supply chain business for BAX Global, and then DB Schenker. Walpole enjoyed an 11 year tenure with DB Schenker, with roles including CEO of Schenker, Inc., the $2.4 billion, 10,000-person US subsidiary of the company.

Prior to joining Delta Cargo, he was Senior Vice President of DP World, a Dubai-based global port operator, where he ran their $2 billion global logistics business.

176 | Supply Chain Outlook Issue 1

Given this experience, Walpole is very familiar with the cyclical nature of the supply chain industry and the challenges this brings, and he possesses significant knowledge of its many intricacies.

“This is an incredibly exciting space to be in; there is always something changing and lots of room to adapt and innovate,” he opens.

Industry players are always trying to anticipate and react to the various global economic trends that have a widespread impact on supply chains and the actions that companies need to take in response. Currently, this includes an increase in manufacturing near-shoring and more concentration in Southeast Asia and other new markets.

Retail trends, such as the continued growth of the e-commerce sector and growing customer demand for two-day shipping, have required that the industry make changes in order to meet customer expectations.

Furthermore, like any industry, the air cargo business is highly impacted by technology developments, including an uptake in third-party platform usage, the need to deliver increased visibility and tracking to end-customers, and the continued need to simplify processes and improve efficiency.

As with many other global sectors, the COVID-19 pandemic was a challenging and unique time for those working in the supply chain business. Huge spikes in demand, manufacturing and supply disruptions across the globe, and the cratering of overall transportation capacity (particularly in the air freight sector) all led to shifts in the traditional modes of transport utilized by companies to ship their products.

“We played a huge part in the shipment of critical goods during the COVID-19 pandemic, including being the first US passenger airline to launch cargo-only flights during this turbulent period and one of the airlines

that supported the global vaccine distribution, transporting millions of vital doses worldwide,” he explains.

Demand and capacity have been rebalancing throughout 2023 after such a large disruption, and there have been logical impacts on the market.

“During the pandemic, we saw customers moving things via air freight that hadn’t typically moved via this mode – refrigerators, paper products, and similar commodities that would usually move via ocean freight. The logical consequence of inventory rebalance is that a more usual commodity split between air and ocean freight has been restored,” Walpole adds.

Additionally, some sectors that did not previously leverage ocean transport, such as the technology sector, have begun to move their goods via this mode. There is also still significant growth in freighter capacity in the market, which is expected to normalize come 2024.

DELTA CARGO NORTH AMERICA Supply Chain Outlook Issue 1 | 177

ASSURING THE SAFETY OF THE LIVES WE SERVE

CANINE CARGO SCREENING

Domiciled at their 75,000 square foot corporate operations and training center in Opelika, AL, Global K9 Protection Group, LLC (GK9PG) was the first company approved by the Transportation Security Administration (TSA) in 2018 to begin providing Certified Cargo Screening Facility - K9 services (CCSF-K9) services. Since their initial TSA approval, GK9PG has grown to be the largest provider of 3PK9 services focused on providing a 100% compliant service while delivering industry leading economic value to their customers. GK9PG is a value based canine security company founded and managed by U.S. Military Veterans and Air Cargo Experts. GK9PG is on the forefront of delivering CCSF-K9 services under the guidelines of the TSA 3PK9 - C program, CCSP - K9 program, in alignment with TSA CCSP 49 CFR Part 1549.

GK9PG maintains a national footprint that includes over 400 TSA Certified CCSF - K9 teams nationwide covering 130+ clients across 35 states, 33 major airports,

and 387 facilities. This includes direct support to 14 Airlines, indirect support to 25 Airlines through their 14 Ground Handling Agent (GHA) clients, and 44 Freight Forwarders. GK9PG currently has 19 national locations with explosive bunkers to support training requirements with additional locations designated for external support and training.

Through their Aviation Services division, GK9PG - AS provides Authorized Representative (AR) services performed by their dualtrained CCSF - K9 handlers. Handlers are qualified as authorized representatives of their clients to conduct physical search, explosives trace detection (ETD), and X-ray screening alongside CCSF-K9 services. This unique layered approach allows K9 teams the ability to clear K9 alarms through secondary screening methods and perform many of the administrative functions of the regulated entity.

LITHIUM-ION BATTERY CANINE CARGO SCREENING

In their continued quest to provide solutions at the forefront of industry and client needs, GK9PG implemented lithium-ion battery screening services in 2023. It is widely known across the air cargo industry that lithium-ion batteries pose an explosive risk when not packaged or shipped properly, and as a result the FAA has warned against transporting pallets of lithium-ion batteries in the cargo holds of planes.

In addition to the primary explosive risk, a secondary issue associated with transportation of lithium-ion batteries is undeclared, undocumented, or counterfeit goods. Counterfeit lithium-ion batteries pose a greater risk due to being manufactured under unregulated conditions, using minimum standards, from inferior materials.

GK9PG utilizes a training methodology proven and validated by the U.S. Department of Defense, and only uses safe and commercially developed lithiumion training aids to ensure the safety of their K9 teams and that canines meet and exceed the strict criteria that must be met throughout their initial training and annual recertifications. GK9PG’s lithium-ion detection creates an additional layered approach in their canine detection solutions which can be implemented independently or alongside existing cargo screening services.

REMOTE SCREENER SUPPORT

GK9PG’s 24/7/365 Remote Screener Support (RS2) service connects client’s remote cargo screeners with accomplished GK9PG bomb technicians comprised of current and former military and law enforcement trained personnel. Leveraging their Globalview platform, RS2 services provide immediate notification of an event/alarm while allowing users real-time visibility into the client’s screening facility during the event, allowing for quick expert decisions to be made at the onset of a critical incident helping prevent unnecessary evacuations due to screeners misidentifying or misinterpreting an unusual or suspect item.

GK9PG HISTORY

2018

COMMERCIAL SERVICES

In addition to CCSF-K9 services, GK9PG also operates a Commercial Services division delivering specialized Dynamic K9s for detecting and responding to the presence of explosives and firearms in physical environments. Their success is a direct result of bringing together world -class canine professionals, explosives subject matter experts, and venue security specialists creating a united effort that delivers best-inclass handlers and canines to meet industry demands. With a focus on public safety, GK9PG is actively contracted with the most iconic brands across the parks & attractions, professional sports, entertainment, transportation, and maritime industries.

In the wake of the Uvalde, Texas school tragedy, GK9PG embarked on a mission to improve school safety through their Paws on Patrol School Safety Program. Developed in partnership with Auburn High School in Auburn, Alabama and John Horn High School in Mesquite, Texas, the program quickly spurred a deployment in schools across the country. The success of Paws on Patrol led to the implementation of parallel services in hospitals nationwide called Paws+.

- First Approved for CCSF-K9 20 Employees
- Commercial Services 125 Employees
- Private School Licensed 190 Employees 2021 - National Expansion 238 Employees 2022 - Government Support 400+ Employees 2023 - Paws Program, Lithium-ion 520+ Employees CONTACT www.gk9pg.com inquiry@gk9pg.com
2019
2020

MCH Aviation Holding Australia:

Your Trusted GSSA Partner for Delta Cargo in Australia and New Zealand

In the dynamic world of air cargo logistics, partnerships matter. They are the lifelines that connect global enterprises with the world, enabling businesses to transport goods seamlessly, efficiently, and with unwavering reliability. At the heart of this intricate web of connections stands a remarkable alliance – the partnership between MCH and Delta Cargo.

A Symbiotic Partnership for Success

MCH, as the General Sales and Service Agent (GSSA) for Delta Cargo in Australia and New Zealand, represents a partnership that’s more than just a business affiliation. It’s a strategic collaboration founded on shared values, common goals, and a commitment to delivering excellence in cargo solutions.

Global Reach, Local Expertise

Delta Cargo, a renowned leader in the global air cargo industry, has built a reputation for its extensive international network. With connections that span six continents, Delta Cargo is an undisputed heavyweight in the field. This extensive global reach is seamlessly complemented by MCH’s local expertise. As a trusted GSSA, MCH intimately understands the unique intricacies of the Australian and

New Zealand market. This partnership ensures that clients receive the best of both worlds – a global network and insights that cater to their specific needs in Australia and New Zealand.

Reliability and Punctuality

The partnership is underpinned by a shared commitment to reliability and punctuality. Time-sensitive cargo demands a level of precision and dependability that is second to none, and MCH and Delta Cargo are dedicated to meeting this challenge head-on. Together, they offer a cargo experience characterised by timeliness and trustworthiness, ensuring that cargo arrives at its destination as scheduled.

Security and Safety as Priorities

The safety and security of cargo are paramount concerns for both MCH and Delta Cargo. Robust security measures and SOPs are in place in line with TSA requirements to safeguard every shipment. This unwavering focus on cargo security provides peace of mind to clients, knowing their goods are in the most secure of hands.

Dedicated Customer Service

The true hallmark of this partnership is a commitment to client satisfaction. The dedicated team of MCH stands ready to assist clients, providing personalized service to cater to their unique cargo requirements. It is a partnership that values the strength of relationships, building connections with clients that endure.

The partnership between MCH and Delta Cargo is more than just a business

partnership; it is a promise of excellence, a pledge of reliability, and a commitment to delivering world-class cargo solutions. This partnership is your gateway to a world of possibilities in air cargo logistics. MCH and Delta Cargo are here to empower your cargo journey, connecting you with the world and ensuring your goods reach their destination with efficiency and care. In the realm of air cargo logistics, this partnership is where success takes flight. MCH and Delta Cargo: Your Trusted Allies in the World of Cargo Excellence.

+61 3 8318 5100

info@mchholding.com.au

With the rebound of air passenger traffic, the traveler load factors are at historic highs, making the management of aircraft belly space more complex than ever, and Delta Cargo is facing the challenge head-on.

DELTA AIR LINES

Delta expects to serve nearly 200 million travelers this year, operating more than 4,000 daily flights to more than 280 destinations on six continents (as of September 2023).

Within the broader Delta enterprise, the Delta Cargo division transports various goods around the world to support the global supply chains of its customers.

Delta Cargo is known in the industry as a belly operator, which means it does not operate a dedicated freighter network of flights, but instead leverages the space available in the belly space of Delta’s passenger aircraft. Prior to the pandemic, nearly half of all international air cargo

“EVERYTHING WE DO IS CENTERED AROUND THE GOAL OF BEING THE BEST-IN-CLASS CARRIER FOR OUR CUSTOMERS AND OUR STAKEHOLDERS. WE ARE CONTINUALLY INVESTING ACROSS DIFFERENT AREAS OF OUR BUSINESS TO IMPROVE AND EXPAND ON OUR CAPABILITIES TO BETTER SERVE OUR CUSTOMERS AND BE THEIR SHIPPING PARTNER OF CHOICE”
– ROB WALPOLE, VICE PRESIDENT, DELTA CARGO

by weight moved via the belly of passenger planes, according to IATA. This business model brings incremental revenue to Delta’s bottom line without additional costs of operating separate flights.

“Cargo is an important piece of Delta’s long-term revenue diversification strategy, and the company is focused on investing and

growing in this space,” comments Walpole.

The dedicated cargo network planning team works hand-inhand with their counterparts on the passenger side to ensure that decisions on the company’s network and fleet strategy take into consideration the needs of cargo customers and market trends.

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This multi-faceted approach requires significant cross-collaboration between the company’s divisions to ensure strategic decisions support the airline’s business as a whole.

To provide access to an even more expansive network for its customers, Delta Cargo also facilitates line haul trucking to and from its hubs and other stations in its network, using both exclusive-use vehicles (EUVs) and less-than-truckload (LTL) options, providing customers with more options to move their goods more efficiently around the world.

BEGINNING WITH FRESHLY PICKED MUSHROOMS

Delta Cargo started as a domestic mail carrier with the first mail shipment in 1934. It then expanded

to regularly scheduled air cargo services in 1946, with the first items shipped being freshly picked mushrooms.

Today, Delta Cargo is made up of 2,100 people worldwide within the broader Delta enterprise. On average, it transports 2.2 billion cargo ton-miles annually, and in 2022, it carried an average of over 3,000 shipments per day across Delta’s global network.

The company serves three primary types of customers, with freight forwarders making up the largest segment. These logistics companies help manage supply chain operations for their business-to-business (B2B) clients and facilitate the movement of nearly any kind of client shipment all over the world via various modes

of transport. Specialty freight forwarders move goods for specific industries, like equipment for professional sports games, concerts, and other productions. Traditional parcel shipping companies also rely on Delta Cargo to move larger freight and time-critical goods.

Additionally, there are direct customers, many of whom who use Delta Cargo’s specialty product lines to ship items that require special handling and care, such as pharmaceuticals, fresh produce, live animals, or high-value goods such as jewelry or diamonds.

The final main customer segment is air mail, which includes traditional postal services who utilize Delta Cargo to deliver letters and packages around the world.

DELTA CARGO NORTH AMERICA

Revolutionizing Logistics: The Unseen Power of Real-Time Payment Reconciliation

In the fast-paced world of logistics, where efficiency is the key to success, one often overlooked obstacle hampers the seamless flow of operations— the reconciliation of payments. In an industry driven by precision and timing, the current state of reconciliations acts as a bottleneck, slowing down the entire logistics workflow. Astonishingly, nearly 40 percent of invoices in the logistics sector contain errors, a statistic that should not be taken lightly. These errors, ranging from incorrect quantities to misapplied fees, can result in delays in accounts payable and receivable, stretching from 30 to a staggering 120 days. The traditional approach to payment reconciliation involves a manual and timeconsuming process that relies heavily on human scrutiny. The complexity of logistics transactions, involving multiple parties, diverse services, and a plethora of invoices, makes it susceptible to errors. As a result, disputes and discrepancies often lead to extended payment cycles, strained relationships between shippers and carriers, and an overall inefficiency that trickles down the entire supply chain.

enhancing transparency, efficiency, and trust among all stakeholders.

One of the primary challenges faced by the logistics industry today is the sheer volume and complexity of transactions. As goods traverse the globe, they leave behind a trail of invoices, each representing a crucial step in the supply chain. The implementation of automated invoice systems equipped with AI technology holds the key to unraveling this complexity. These intelligent systems can swiftly scan, analyze, and cross-reference invoices against predefined parameters, instantly flagging errors and discrepancies. Real-time reconciliation is not merely a theoretical concept; it is a tangible solution to a problem that has long plagued the logistics industry. The integration of AI into the invoicing process enables the system to learn from historical data, continually improving its accuracy in identifying potential errors. This self-learning capability reduces the likelihood of repetitive errors, allowing logistics companies to operate with increased reliability.

The Future is Not So Far Away

The future of logistics, however, holds the promise of a revolutionary transformation through the implementation of real-time reconciliation powered by cutting-edge technology. Imagine a logistics landscape where automated invoice systems and artificial intelligence (AI) collaborate seamlessly to identify errors in real-time, streamlining communication and dispute resolution between shippers and carriers. This shift from a reactive to a proactive approach is poised to redefine the industry,

Furthermore, the advent of realtime reconciliation will redefine the communication dynamics between shippers and carriers. Currently, dispute resolution can take days, if not weeks, as parties engage in back-and-forth exchanges of emails and phone calls. With the implementation of automated systems, disputes can be identified and settled within hours, if not minutes. The result is a logistics ecosystem that operates with unprecedented agility, where disputes are addressed swiftly, preventing any significant disruption to the supply chain.

The Impact of The Logistics Ecosystem Redefined

The impact of real-time reconciliation extends beyond the immediate benefits of error reduction and faster dispute resolution. Shippers and carriers will experience improved cash flow, as payments are processed without unnecessary delays. This, in turn, will strengthen business relationships, as trust is built on the foundation of timely and accurate financial transactions.

The implementation of such advanced technologies will also enable logistics companies to allocate resources more efficiently. The time and effort currently invested in manual reconciliation processes can be redirected towards strategic planning, optimization of routes, and overall improvement of operational efficiency. Realtime reconciliation is not just a solution to a problem; it is a catalyst for positive change throughout the logistics industry.

As we embrace the era of real-time reconciliation, it is essential for logistics companies to invest in technology and adapt to this paradigm shift. The benefits of increased efficiency, reduced errors, and enhanced collaboration between shippers and carriers are too significant to ignore. The future of logistics lies in the hands of those willing to embrace innovation and leverage the power of real-time reconciliation to propel their operations into a new era of excellence.

Unprecedented Efficiency

In conclusion, the next forefront in logistics is not a new mode of transportation or a revolutionary packaging solution; it is the often-underestimated power of real-time payment reconciliation. By harnessing the capabilities of automated invoice systems and AI technology, the logistics industry has the potential to overcome the challenges posed by manual reconciliation processes. The future promises a logistics landscape where errors are minimized, disputes are settled swiftly, and the entire supply chain operates with unprecedented efficiency. It is time for the industry to embrace this transformative shift and unlock the true potential of real-time reconciliation.

Learn more about how PayCargo and its Premium Integrations streamlining your Accounts Receivable and Payables for maximum efficiency so that your business can focus on what matters most.

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It is of significant importance to Delta Cargo that it enlists the expertise needed to transport every type of cargo in a best-in-class manner. As a prime example, the team in charge of managing the transportation of live animals includes an experienced veterinarian. With this extensive knowledge of the needs and intricacies of transporting live animals, the company is able to achieve daunting tasks such as safely moving large quantities of live baby chicks across the country.

Delta Cargo is the first US global passenger carrier to receive IATA’s Center of Excellence for Independent Validators (CEIV) Pharma certification, a high distinction of pharmaceutical handling standards that is critical for operators aiming to serve the sensitive needs of the pharmaceutical industry.

“We know that sometimes the details matter most, and that the difference in a few degrees can save

lives when it comes to delivering temperature-sensitive shipments. That’s why we invest in compliance with the highest industry standards to safeguard product integrity,” Walpole notes.

COMMITMENT TO OPERATIONAL EXCELLENCE

Delta Cargo customers already benefit from Delta’s superb operational reliability – the company was recognized as North America’s most on-time airline in 2022, a position it has held over the course of many years in the recent past.

“A key priority for us has been to match Delta’s worldclass performance and the high quality service provided to our passengers with the same level of service predictability for our cargo customers.” says Walpole. “Our operational reliability and customer service are the foundation of our reputation and success.”

The company is moving the needle when it comes to on-time delivery performance, ensuring reliable freight delivery across its global network.

This is exemplified by Delta Cargo’s improvements in its on-time performance metrics. For example, the company currently boasts the highest rating of any belly carrier airline year-to-date according to IATA’s standard industry measure (NFD) and has improved its performance over the prior year.

With all the moving pieces involved in the supply chain, things don’t always go exactly as planned. When issues arise, Delta Cargo is committed to having the best proactive resolution processes in the industry.

“The most critical thing our customers want to know when something doesn’t go as planned is: ‘what do we do, and how do we communicate back to our own customers?’” Walpole notes. “We prioritize solving any issues that arise,

DELTA CARGO SUPPLY CHAIN NORTH AMERICA

DELTA CARGO’S NETWORK AND FLEET

NETWORK – Delta Cargo has over 200 cargo stations worldwide, including 11 domestic hub stations and two key international stations managed by Delta partners. On the ground, Delta Cargo also offers approximately 200 scheduled trucks on average per day, connecting nearly 300 city-pairs around the world.

FLEET – Delta continues to receive new A350-900s and A330-900neos, as these aircraft are becoming the mainstays of the company’s widebody fleet due to their high capability and fuel efficiency. Delta Cargo works incredibly closely with the fleet team, as well as the widebody passenger planning group, to ensure both sides are aligned on ordering, configuring, and deploying the right aircraft on the right routes at the right times.

as exemplified by our investments in dedicated in-house support teams, as well as in technology that enables us to anticipate potential service failures, notify our customers, and more quickly resolve issues. This is one of the most important parts of providing quality customer service.”

The company utilizes its Cargo Control Center (CCC), which monitors

the heartbeat of Delta Cargo from its Atlanta headquarters, providing a rapid response to any anticipated or confirmed irregular operations and informing other supporting operational teams of actions needed to remedy any issues.

Delta Cargo has established proactive monitoring for premium products to enable quick service

recovery for the most time-sensitive and high-value shipments. Its Customer Service Center, which works closely with the CCC, serves as the primary conduit of communication with customers, both assisting in the creation of new bookings as well as servicing existing ones. Additionally, a Customer Escalation Team was created to further improve the speed to resolution when issues arise, working directly with operational teams to resolve reported problems and monitoring affected shipments until delivery.

“Ultimately, we are focused on being the easiest partner for our customers to do business with,” comments Walpole. “We’ve established mechanisms to get direct feedback from customers, and more importantly, act upon it.”

To further support its operations with both internal and external parties, the company relies on its Delta Logistics Control Center

Supply Chain Outlook Issue 1 | 187

(DLCC), which serves as a one-stop transportation shop, centralizing and streamlining the movement of various goods and supplies.

This unit of the company plays an important role in connecting and collaborating across teams to ensure efficient operations, working to minimize service issues, provide faster processing times by establishing routing rules, and constantly monitor the market to ensure compliance.

STEADFAST RELATIONSHIPS

The air cargo market is a complex business, with distinct customers and needs across the many markets in which Delta Cargo operates. Strong relationships with partner airlines and suppliers provide the company with local knowledge and expertise in key global markets.

“WE PRIDE OURSELVES IN BEING EXPERTS IN EVERY TYPE OF CARGO WE MOVE”

“Business partners are critical to our success, not only to support our growth and innovation, but also to enable us to run our own logistics smoothly,” notes Walpole.

“We have a critical network of partners supporting our operations and sales processes across the globe, who are a key extension of the Delta Cargo network and brand,” he says. This network includes ground handling agents (GHAs) who handle front-line operations at smaller cargo stations and cargo sales agents (CSAs) who represent Delta Cargo in competitive international markets.

The company also utilizes its extensive network of airline partnerships and alliances to offer customers access to an even broader global network.

“Our alliance partners are some of the best cargo airlines in the world,” comments Walpole.

“Through Delta Cargo’s coordination with each of these partners, we have worked to create a more seamless experience for our customers, regardless of who is operating the flight or handling the goods on the ground, in an effort to save customers time and effort,” he continues.

188 | Supply Chain Outlook Issue 1 DELTA CARGO NORTH AMERICA

Why Choose ERMC Aviation?

Unrivaled Expertise

With over 30 years of experience, ERMC Aviation is a trusted name in the aviation maintenance industry. Our team of highly skilled staff are committed to providing the highest standards of support, safety, and professionalism.

Safety First

Safety is our top priority. Our employees undergo continuous training to ensure every operation is secure and comfortable for all those involved.

Personalized Service

We understand that every customer is unique. That’s why we offer personalized services to cater to your specific requirements and operational needs.

Efficiency and Convenience

We pride ourselves on being the most efficient and convenient service provider. We work in tandem with our customers to ensure projects are completed on time and on budget.

Competitive Pricing

Quality doesn’t have to break the bank. We offer competitive pricing options, ensuring that you get the best value for your operational needs. ERMC prides itself on providing the highest quality service at a competitive price. We look forward to developing partnerships to ensure the expectations of our customers are exceeded.

Contact us for all of your baggage handling system, passenger boarding bridge or facility maintenance needs.

Enabled by its Blue Skies alliance with Air France-KLM and Virgin Atlantic, Delta operated its largestever transatlantic schedule in the summer of 2023, with additional frequencies in key cargo markets like Paris and London. In the coming year, the company is anticipating another record transatlantic schedule with significant additions in Paris, Rome, Madrid, Milan, Dublin, and London.

Additionally, the Delta and Korean Air joint venture provides service from 16 different points in the US to Incheon and Haneda across approximately 23 daily flights, with Korean Airlines connecting to an additional 39 points. This allows Delta

RECENT DELTA CARGO INVESTMENTS AND ENHANCEMENTS

• Growing Delta Cargo’s capabilities in the New York City market to better serve global pharmaceutical customers, both by investing in state-of-the-art facilities and working with partners to strengthen its global reach.

• The introduction of a new online shopping and booking platform in the US market, which allows customers to obtain an instant quote of the best rate available and view all product options side-by-side in the shopping display. This new platform improves transparency and ease-of-use for customers, and creates a more seamless booking experience.

• Continuous ongoing enhancements to the customer service model, including the introduction of special desks focused on servicing specific needs, such as a dedicated pharmaceutical desk.

Cargo to offer customers capacity to destinations across Asia that it otherwise would not be able to serve on its own.

In North America, the Delta and Aeromexico joint cooperation agreement opens up the ability to provide service between the US and Mexico with 71 daily flights, with Aeromexico connecting to an additional 49 points within Mexico from its hub in Mexico City. With the growing trend toward nearshoring and the relocation of manufacturing operations to North America, this alliance offers more seamless solutions to connect these companies

with their end customers.

These airline partnerships provide Delta Cargo with the ability to find win-win solutions for customers and improve the ease of doing business with the airline. For example, the company recently enhanced its partnership with Aeromexico to enable seamless connections for pharmaceutical shipments via the John F. Kennedy International Aiport (JFK) and Mexico City International Airport (MEX) route. This new and promising opportunity leverages the expertise and capabilities of both airlines, including state-ofthe-art coolers at both hubs, and

ultimately expands Delta Cargo’s pharmaceutical network to better serve customers.

DELIVERING A MORE SUSTAINABLE FUTURE

“We believe that social responsibility lies at the intersection of our values and expertise, guiding our work in our local communities,” says Walpole.

As such, Delta has committed to returning one percent of the company’s annual profits to the communities where it operates as a way to give back and make a difference. The company also offers many opportunities for its employees to volunteer their time, and Delta is the largest corporate blood drive sponsor for the Red Cross in the US.

Along with giving back to the local community, Delta Cargo has made impressive strides when it comes to sustainability.

“Delta has been very vocal about our focus on sustainability and has committed to working toward a more sustainable future of travel through various efforts, including investing heavily in the supply of sustainable aviation fuel,” he explains.

One of the primary ways in which Delta Cargo is contributing towards these sustainability efforts is through

190 | Supply Chain Outlook Issue 1 DELTA CARGO NORTH AMERICA

Quantem Aviation Services

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“OUR DELTA CARGO TEAMS ARE COMMITTED TO EXCELLENCE IN EVERYTHING THAT THEY DO AND EMPOWERED TO FIND WAYS TO CONTINUOUSLY IMPROVE OUR BUSINESS”
– ROB WALPOLE, VICE PRESIDENT, DELTA CARGO

promoting Sustainable Aviation Fuel (SAF), a biofuel used to power aircraft that has a smaller carbon footprint than conventional jet fuel. SAF production is a renewable process, and currently, SAF can reduce life cycle emissions by up to 80 percent compared to fossil fuels, supporting a more promising future for transportation.

To support the company’s efforts to increase SAF supply and ultimately achieve the goal of replacing 10 percent of jet fuel with SAF by the end of 2030, Delta Cargo partners with its customers on SAF production deals, which in turn help those customers in meeting their sustainability goals as well.

“This work is not only good for the planet – it’s a business imperative. The people we care about, care about sustainability,” says Walpole.

“To date, the SAF agreements that Delta Cargo has signed with our clients and partners include

commitments totaling approximately two million gallons,” he continues.

In addition to SAF, the company has been focused on other green initiatives, including utilizing BioNatur stretch film and pallet covers, which are 100 percent biodegradable and significantly reduce plastic usage. Since making the switch to BioNatur in 2021, Delta Cargo has prevented the equivalent of 18 million 16-ounce plastic bottles from ending up in landfills . Zero-emission electric ground support equipment (e-GSE) vehicles are also used in many of Delta Cargo’s warehouse facilities, which boast zero operating emissions, improved air quality, and reduced operating and maintenance costs.

THE PEOPLE OF DELTA CARGO

“While it can be easy to focus on the investments we make to improve our capabilities and better serve our customers, it’s important to emphasize that the single most

important element to our success is our people,” comments Walpole.

Delta Cargo not only ensures that its people feel supported and encouraged to consistently grow in their fields, but also that their safety is prioritized above all else. To support this mission, the company has established programs to strengthen the overall culture of safety by encouraging employees to proactively identify and report any potential hazards.

The high standards of the company and its commitment to upholding a strong culture continue to underpin Delta Cargo’s world-class team.

“We work for a company that places a huge emphasis on living our core values – or as we call them, the Rules of the Road: integrity, resilience, care, and servant leadership,” enthuses Walpole. “These are more than just words to us – we have high standards and a commitment to holding ourselves and each other accountable.”

Additionally, Delta Cargo takes its diversity, equity, and inclusion goals incredibly seriously, understanding that they are the core foundations of an organization doing its part to drive systemic change.

“At every level of our company, we are committed to actively seeking diversity, boldly pursuing equity, and consciously promoting inclusion.

“We focus on cultivating a sense of belonging and advancing equitable opportunities for all employees to succeed,” Walpole continues.

Delta has established a Close the Gap strategy to increase the representation of women, Black talent, and other underrepresented racial and ethnic groups to ensure leaders are more reflective of the frontline workforce. This is along with its skills-first talent program which works to remove unnecessary barriers to certain roles across the company, such as four-year degree requirements.

192 | Supply Chain Outlook Issue 1 DELTA CARGO NORTH AMERICA

Bringing airlines into global e-commerce at the speed of flight

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DELTA CARGO PARTNERS

AEROMEXICO CARGO – The first transborder aviation alliance between the US and Mexico, offering customers options across a broad network of flights, along with trucking and several widebody aircraft frequencies.

AIR FRANCE-KLM CARGO – Partnered since 2008, this alliance offers service to six continents, and one-roof warehousing in eight North American cities and 15 European cities helps deliver a more efficient service to customers.

KOREAN AIR CARGO – The airlines’ joint venture offers world-class services across one of the most comprehensive route networks in the Transpacific market.

VIRGIN ATLANTIC CARGO – Partnered since 2013, together the carriers offer one-roof warehousing at six North American locations as well as at the industryleading facility at London-Heathrow airport, featuring advanced technology and automation.

SKYTEAM CARGO – Founded in 2000, SkyTeam Cargo is the world’s only global cargo alliance and offers an extensive network with an aligned product portfolio.

“In addition to corporate-level initiatives, we’ve established employee-led committees in Delta Cargo to promote these same priorities within our own division and foster a greater sense of inclusion. Our employees are also active in various company-wide Business Resource

Groups, which aim to ensure our people think, behave and lead in a way that reflects the values of our customers and the communities we serve,” certifies Walpole.

FLYING TOWARDS THE FUTURE

“All of our projects and investments

are focused on our overarching goal of being a best-in-class belly cargo operator, which includes running the best operation, providing industryleading products and services, and delivering the highest quality overall experience for our customers,” explains Walpole.

The seamless movement of goods and commodities is crucial, and no one recognizes that more than Delta Cargo.

Current demand for time-critical, temperature-sensitive air cargo solutions has been increasing, and the company continues to invest in enhancing its capabilities across its network. This includes a significant investment in an industry-leading cold-chain facility at New York City’s JFK, as well as continuing to expand its footprint by adding new certified stations to its already vast pharmaceutical network, with the most recent additions in Philadelphia (PHL), Chicago (ORD), and Raleigh (RDU). The company is planning more additions to this network in the near future.

Earlier this year, Delta Cargo opened its JFK Cooler – a 16,000 square foot (sqft), state-of-the-art facility – to enable the transport of cold-chain products at a consistent temperature throughout their entire journey. New York is the biggest European gateway for pharmaceutical movements, and the $15 million investment unlocks connectivity to a wide network of markets for coldchain customers by leveraging Delta’s extensive network out of JFK.

“We’re very proud of our new facility, which is the largest of its kind at JFK and features separate temperature zones for different types of medicines and pharmaceutical products, as well as dedicated zones for other perishables such as seafood and fresh produce,” Walpole notes.

In pursuit of its goal of running the best operation in the industry, Delta Cargo recently implemented its new

194 | Supply Chain Outlook Issue 1

www.emeoutlookmag.com/work-with-us www.supplychain-outlook.com/subscribe

Hub Control System (HCS) across 11 key hubs. HCS is a new workload steering tool that enables significantly improved operational performance in hub stations where they handle high volumes of cargo transfers. This new system equips warehouse teams with the ability to streamline the transfer process and more efficiently prioritize shipments.

Since its implementation in April of this year, the new system has resulted in a 14 percent improvement in overall transfer connection performance in Delta Cargo’s largest hub in Atlanta, Georgia (ATL), and a 24 percent improvement in average offload recovery time – expediting customer recovery times by nearly two hours.

“Our market continues to change and develop, and it is critical to ensure our services and capabilities are constantly improved in order to best serve our customers’ evolving needs,” explains Walpole.

Looking towards the future, Delta

Cargo is continuing to invest in the advancement of technology and process improvements.

This includes the implementation of a new industry-leading operating system which will enable enhanced operating functionality, including streamlined acceptance processes and improved load planning, ultimately providing greater transparency and flexibility for customers.

Delta Cargo also has several other exciting initiatives in the works to expand and improve its product offering, including introducing a new tracking technology that will provide an increased level of visibility to shipments’ locations and status throughout their journey, allowing for better proactive service recovery.

These initiatives help to further advance the company’s goal to consistently provide the highest quality service for each and every customer, no matter their shipping needs.

From transporting life-saving

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pharmaceuticals and organs for transport, to fresh flowers and seasonal produce, Delta Cargo’s strong portfolio of products provides world-class service for every customer’s needs, ultimately making a difference in communities worldwide.

“We are in a unique position where we can make a lasting impact on individuals and communities. Whether it’s through the quick transport of an organ that results in a successful life-saving surgery, or the transport of emergency relief supplies after natural disasters, we are proud to connect the world and make a difference,” concludes Walpole. DELTA

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Tell us your story and we’ll tell the world G2 Secure Staff, LLC has over 11,000 aviation service professionals in over 88 of the top traveled airports across the United States. We are people-based company whose values center around people, service, and integrity. We’re proud of our diverse culture and strive to provide the safest working environment possible. We are a preferred service provider for nearly every major US airline and serve hundreds of customers including many international airlines. Our wide range of aviation service solutions include: • Full ground handling Aircraft appearance • Passenger and ramp services • Terminal services Cargo • Security and maintenance services We build trusted working relationships with our airline partners and approach every one as a lifetime contract and enjoy over a 98 percent customer retention rate. Please visit our website at www.G2SecureStaff.com to view service solution details. We use the state of the art technology to ensure the efficiency, reliability, and compliance of our operations. Our tablet devices match new work assignments with our agents using the latest geolocation technology to ensure the most efficient and highest quality customer experience possible. This same technology is utilized in our aircraft appearance operations to enhance the timeliness and accuracy of our operations. We love to celebrate the accomplishments of our team members and recognize their service through our
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Supply Chain Outlook Issue 1 | 195 DELTA CARGO NORTH AMERICA

PORTHOLE TO THE WORLD

Here at Saltchuk Marine, we have the right resources, the exemplary people and the experience to be the best operator in our chosen markets.”

Consisting of five operating companies, and a recently opened terminal in New Bedford, Massachusetts, Saltchuk Marine

proudly serves Alaska, Hawaii, the US West Coast, and the burgeoning offshore wind industry on the Eastern seaboard.

Additionally, the project services team works with customers all over the globe, and a fleet of over 100 Saltchuk Marine vessels operate in oceans, rivers, and ports around

the world, giving the company an international presence.

The services provided by Saltchuk Marine would not be possible without its family of companies, and one of the oldest and most iconic of those is the tug company, Foss Maritime. In turn, Saltchuk Resources, the parent company of Saltchuk Marine, acquired

196 | Supply Chain Outlook Issue 1
Proudly serving the US with a reliable fleet of seafaring vessels, we speak to Jason Childs, President and CEO of Saltchuk Marine about its versatile and responsive maritime services

AmNav, Young Brothers, Cook Inlet Tug and Barge (CITB), and Starlight Marine, all between 1997 and 2020.

“Saltchuk Resources is an acquisitive holding company with many diverse brands including TOTE, Tropical Shipping, Carlile, Aloha Air Cargo, Hawaiian Petroleum, and many others,” outlines Jason Childs, President and CEO of Saltchuk Marine and orator of the opening statement.

Prior to his current position, Childs worked for an aerospace and technology company, where the organizational structure was similar to Saltchuk Marine.

“Saltchuk Marine presented me with an opportunity to work with a great team of experienced maritime professionals while bringing innovations from the aerospace industry,” he reveals. “It is a complex blend of businesses and I love the challenge.”

Childs currently oversees Foss Maritime, AmNav, CITB, Young Brothers and Foss Offshore Wind, which includes the New Bedford Foss Marine Terminal.

Although the maritime environment is challenging, and safety is always the number one objective, Saltchuk Marine strives to create a culture where people are valued, respected and safe.

Supply Chain Outlook Issue 1 | 197 SALTCHUK MARINE NORTH AMERICA
Jason

JT MARINE - YOUR ANYTIME MARITIME SOLUTION

JT Marine Inc (JTM) is a full-service shipyard in the Portland/Vancouver region. Proud to be family owned and operated since 2007, JTM has been consistently providing quality new construction, steel fabrication, vessel retrofits and ship repair services to the marine community ever since. The company now offers a vast range of shipyard options and marine services for its clients’ vessel repair, construction and design needs, existing as a highly flexible and efficient solutions provider. Now steeped in more than 80 years of combined shipbuilding, marine shipyard services, and repair experience, whilst being conveniently located on the Columbia River in Vancouver, WA, JTM offers an ideal, complete service location for major retrofits and vessel repair.

Possessing its own covered fabrications bays outfitted with overhead cranes, and its assembly locations alongside a 1200-ton dry dock, JTM is thoroughly equipped to handle whatever job its clients need, big or small, and the company now performs work all over the Northwest.

Boasting decades of experience in shipbuilding and marine work throughout the entirety of the West Coast, from a client’s first

call to the final sign-off on our work, JTM offers an excellent customer service experience. When asking the question, what makes JTM the company to choose, the answer remains that the company has the specialists its clients require when looking to deliver a project safely and with the highest quality, on time, every time.

Customer-centric and detail-orientated, JTM combines generations of unrivalled experience with modern and innovative production methods to deliver high quality products with unparalleled service.

Marine Shipyard Services

At JTM, the company strives to bring quality vessel repair at fair and balanced pricing to its many customers. With its 1,200-ton lifting capacity dry dock, expansive pier and shoreside buildways, the company now offers the capability and qualified personnel to achieve all its clients’ marine vessel needs. Whether they are in need of USCG Subchapter M compliance dry docking, or a complex tugboat conversion, JTM is always the answer.

JTM’s vastly knowledgeable shipyard craftsmen provide solutions for all its customers’ vessel repair needs, including steel fabrication, machining, hydraulic, electric, joiner, propellers and mechanical.

Additionally, JTM offers full-service capabilities for any further marine vessel painting and coating needs as well. When the company declares itself as a full-service shipyard, it really means it!

The JTM Mantra

At JTM, quality is a way of doing business – it is, therefore, an essential component of the company’s culture that it has carefully curated.

To JTM, quality means first understanding its customers’ problems and expectations, and then developing an approach to solve those problems and exceed those expectations. In this way, the company consistently looks for ways to improve its processes, tools, and its approach to doing business. JTM understands that when it does better, its customers simultaneously do better.

Repairs and Retrofits

JTM has two dry docks with a max capacity of 200’X50’ and 1200-tons. The company’s in-house team of machinists, marine painters, welders, carpenters and valve technicians can handle anything from a routine repair to major retrofits.

Services Provided

• Shipbuilding

• Dry docking

• Ship repair and overhauls

• Pile driving

• Clamshell and hydraulic dredging

• Heavy civil construction support

• Tug support

• Barge/crane barge support

• Top side ship repair

• Heavy lift services

• Salvage operation support

• Vessel deconstruction

• Bridge inspection support

Equipment Operated

• 1200-ton, 200’ x 50’ drydock

• 350-ton, 120’ x 33’ drydock

• 100’ 1800HP tug, Cristy T

• 48’ 220HP tug, Kayla T

• Floating cranes up to 240 ton

• Land cranes up to 300 ton

• Flat deck, spud and ramp barges

New Construction Projects

Hyak Maritime

• Tug Hawaii

• Tug Washington

• Tug Montana

Vessel Chartering

• Tug Caden Foss

HME Construction

• Dump Scow Barge Robert L

USCG Cutters in Bahrain

• Floating pier solutions

Barges in Vancouver and Portland Home to a comprehensive portfolio of services, JTM offers a wide variety of barges in an array of sizes for marine projects in the Portland, Oregon, Vancouver, and Washington areas. As a premier barge company located on the Columbia River, for new customers looking to rent or lease a barge, JTM asks them to reach out and contact the company, so that it can work together to meet project needs and collaborate effectively.

JTM offers spud barges, as well as barges with custom anchor configurations depending on the location’s needs. These barges are frequently used for heavy civil construction projects taking place on the Willamette River and Columbia River, as well as wherever the company’s services are needed.

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SUPPLY CHAIN OUTLOOK: HOW DO YOU TRY TO MOTIVATE YOUR WORKFORCE?

Jason Childs, President and CEO: “We foster a winning culture, however, in order to do that, we look for people who bring energy to their work because it’s infectious when one is working on a winning team. In return, we provide professional development opportunities for all employees, and we have several initiatives and resources to encourage healthy lifestyles.

“Safety is our priority and that applies to the office as well. We balance the total package of compensation, career opportunities, community, selfdevelopment and then a sprinkle of fun.”

Community is integral. Saltchuk Marine is heavily involved as a social citizen and supports a variety of causes focused on maritime, education, and the environment. Employees frequently participate in local charitable events with corporate support.

“There is an immeasurable amount of pride that each and every teammate throughout Saltchuk Marine brings to their job each day. From the tugboats, terminals and barges to the shoreside offices and dispatch centers, all of us are doing what we can to be the best in class and operate with excellence on a daily basis.

“I learned the value of teamwork and how to refine your skills and strategy to stay competitive through my NFL experience. It also solidified that challenges can be overcome through preparation, hard work, and a disciplined approach; the very qualities I see in Saltchuk Marine teammates,” Childs adds.

THE SALTCHUK STORY OF MARINE SERVICES

Saltchuk Marine is driven by a rich and storied history of innovation and service, and at the center of its offering is the tugboat.

As an important cog in the Saltchuk Marine machine, Foss Maritime was founded in 1889 by Thea Foss, the original “Tugboat Annie” and the subject of the 1933 film of the same name.

Foss Maritime joined the Saltchuk Marine family of companies in 1987. Today, it owns and operates one of the nation’s largest coastal tug and barge fleets, offering a broad range of green and blue water marine services in the Pacific Northwest, Hawaii, Alaska, and beyond.

The green water area extends from the outer edge of the brown water layer, which starts at the shoreline and ends at the continental shelf.

200 | Supply Chain Outlook Issue 1 SALTCHUK MARINE NORTH AMERICA

Green water encompasses continental shelves, archipelagos, and islands, whilst blue water refers to the environment past the outer edge of the former’s zone to the deep ocean.

Other companies which comprise Saltchuk Marine’s services include Young Brothers, founded in 1900 as Hawaii’s foremost inter-island freight handling and transportation company serving individuals and businesses

SALTCHUK MARINE –QUICKFIRE FACTS

• Above $419 million annual revenue

• 1,000 employees

• 110+ vessels

• The only regularly scheduled common carrier authorized by the State of Hawaii to transport goods over the water from one island to another

alike, moving goods by barge among the Hawaiian islands.

Moreover, CITB is an Alaska-based marine transportation company acquired in 2011. It specializes in harbor services, fuel distribution, construction and oil and gas industry support. CITB operates along Alaska’s entire coastline including the Port of Anchorage and Cook Inlet, Seward, Southeast Alaska, the Aleutian Islands and Arctic Alaska.

Finally, AmNav has been the leading provider of marine and harbor services in the San Francisco Bay area since 1976, along which it has expanded its operations to Los Angeles and Long Beach.

Saltchuk Marine has experienced continued growth throughout the decades and is constantly expanding, with the most recent additions being Foss Offshore Wind and the New Bedford Foss Marine Terminal. The investment reflects a significant commitment to the offshore wind industry.

With a keen use of technology,

Saltchuk Marine companies continue to lead the industry in innovative solutions, and environmental stewardship. In addition to marine services, Foss Maritime also provides full technical and engineering services.

THE TALE OF THE TUGBOAT

The tugboat is positioned at the center of Saltchuk Marine’s services. Although tugboats weren’t invented until the 1810s, maritime history dates to around 5,000 years ago when the first major trade routes were formed between modern-day India and Pakistan along the Arabian Sea. The US, on the other hand, was not a self-sufficient nation, so trade by sea became essential.

The very first tugboat hit the water in Scotland in the early 1800s, and it was only five short years later when, in 1807, tugboats were introduced to US waters by engineer Robert Fulton.

With new boats came new jobs, as crews were needed to man the vessels, and a boost to the economy

202 | Supply Chain Outlook Issue 1 SALTCHUK MARINE NORTH AMERICA

Supporting the maritime industry through salvage, dredging, heavy-lift, and ocean towing since 1964.

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due to the necessary manufacturing work. Prominent new jobs including captains and engineers appeared as a result.

Just as the sea has shaped the US coastline, the tugboat is integral to the nation’s maritime history. Known as the “tow trucks of the waters” and the “great little helper”, they are used to move stalled ships, help vessels pass through frozen and challenging waters, and occasionally assist in putting out fires.

Initially, before it came to US waters, the tugboat was used as a passenger ship, although it did not last long in that capacity as it was feared that the boat would erode the banks if it got too close to the shoreline. However, they quickly evolved from steam powered to diesel powered, and today they are even used to direct cruise ships in the marina.

Without the use of tugboats, the US waterways would not be as safe, and vessels would not be as efficient. The great little helpers assist other ships and protect the passages as much as

possible for seafarers and the public alike.

Several different types of tugboats have appeared on the scene to assist seafaring vessels, but it is harbor tugs which are generally required to assist tankers through the waterways. However, that is not their only job, as dredging, bunkering, liquid transfers, and assisting with cargo operations are also performed.

Tugboats are even utilized by the US Navy (USN), with Fleet Ocean Tugs providing towing, diving, and standby submarine rescue services to the USN’s numbered fleet commanders.

With their plethora of uses, and reliability, it is easy to see why Saltchuk Marine has tugboats at the center of its operations.

MARITIME OPERATIONS

Saltchuk Marine’s business is centered around the tugboat, from towing Young Brothers barges between the Hawaiian islands to assisting ships in and out of the harbors from Anchorage, Alaska to Long Beach, California.

“We provide rescue tows around the world and emergency response when called upon. As proven by the COVID-19 pandemic, we are an essential service that keeps the wheels of commerce turning,” Childs says proudly.

This year, Foss Offshore Wind will deliver Jones Act compliant barges with offshore wind equipment to help build the first large-scale offshore wind farm in the US – Vineyard Wind I.

Foss Maritime, meanwhile, provides harbor ship assistance and escorts in Alaska, Washington, Oregon, Hawaii, and California. Additionally, Foss Maritime’s Project Services division operates throughout the world.

“Recently, Foss Maritime towed the former USS Kitty Hawk 16, 350 nautical miles from Bremerton, Washington to Brownsville, Texas around the southern tip of South America through heavy seas and gale force winds,” Childs tells us.

The likes of Foss Offshore Wind

204 | Supply Chain Outlook Issue 1 SALTCHUK MARINE NORTH AMERICA

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“HERE AT SALTCHUK MARINE, WE HAVE THE RIGHT RESOURCES, THE EXEMPLARY PEOPLE AND THE EXPERIENCE TO BE THE BEST OPERATOR IN OUR CHOSEN MARKETS”
– JASON CHILDS, PRESIDENT AND CEO, SALTCHUK MARINE

and Foss Maritime are not the only Saltchuk Marine companies making positive contributions.

Young Brothers has a hub and spoke operation based in Honolulu, where goods come into the terminal located in the port and are then distributed to the outer Hawaiian islands via barge and tug transport. Hawaiians are reliant on Young Brothers’ services for their provisions, vehicles, and livestock transport.

Whereas AmNav operates out of Oakland and Long Beach, both in California, providing harbor ship assistance to customers in the San Francisco Bay and the LA/Long Beach harbors, it also provides rescue tows off the California coast when called upon.

In a decidedly colder climate, CITB, based in Anchorage, is the state’s tug and barge company. It provides marine services throughout Southcentral Alaska, Cook Inlet, and the Port of Anchorage. CITB takes pride in providing excellent services in a unique and challenging environment in the waters of Alaska.

Subsequently, Foss Offshore Wind was created to be a leading provider of installation, laydown, supply, and transportation services to the burgeoning US offshore wind industry. Foss Offshore Wind is uniquely positioned to provide customers with the full range of onshore and offshore support services.

“Initially, we established proof of concept with the New Bedford Foss Marine Terminal. We will provide office space, laydown space, terminal warehousing logistics and workshop, a marine coordination center, and berthing and fueling facilities that can be replicated in Rhode Island and possibly other locations,” Childs enlightens us.

Saltchuk Resources provides the operating companies with capital investment, legal, finance and administrative expertise needed

206 | Supply Chain Outlook Issue 1 SALTCHUK MARINE NORTH AMERICA

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to operate and compete in today’s maritime environment.

“Safety is our first priority and remains in the DNA of all operating companies. Saltchuk Marine wants all its companies to be the kind of place where we wouldl be proud for our children to work,” Childs says.

Saltchuk Marine employees are honest and ethical in their performance for the company, and are encouraged to Speak Up and Take Action when they have a concern.

“As a family business, we are not driven by Wall Street, but by a desire to be the best in our industry. Not the biggest, but the best. We provide critical services to our communities, both metropolitan and remote, so we are motivated to care for people and the places they call home,” he adds.

NAVIGATING THE WAVES

The shipping industry has changed dramatically in the last few years, as it has had to adapt to major headwinds such as the COVID-19 pandemic, economic uncertainty, and global instability alongside an increasing environmental agenda.

“The movement of agricultural products and petroleum has shifted significantly due to supply disruptions paired with strong demand. The pressure to transport goods quickly and economically across the ocean has amplified,” observes Childs.

As a large operator, Saltchuk Marine needs to maintain flexibility and shift as the market evolves. This includes using technology and predictive analytics to be more agile and proactive, however the transportation of goods in line with the economy is

not the only pressure the company is facing.

“We are also striving to reduce our environmental impact through alternative fuel use, more efficient dispatching, and development of the offshore wind industry,” Childs continues. “Our industry must continually evolve to meet the increasing demands of the market.”

In 2009, Foss Maritime designed and built the world’s first dieselelectric tug – the Carolyn Dorothy, which is still in operation. By 2022, Saltchuk Marine had repowered all tugboats working in California to Tier 4, significantly reducing emissions.

“We also trialed biofuel in Northern California in Foss Maritime’s Alta June tugboat, and we continue to be the market leader in environmental safety,” Childs states.

“WE ARE ALSO STRIVING TO REDUCE OUR ENVIRONMENTAL IMPACT THROUGH ALTERNATIVE FUEL USE, MORE EFFICIENT DISPATCHING, AND DEVELOPMENT OF THE OFFSHORE WIND INDUSTRY”
– JASON CHILDS, PRESIDENT AND CEO, SALTCHUK MARINE
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Saltchuk Marine has implemented a fuel reduction initiative and is exploring alternative fuels to minimize greenhouse gas (GHG) emissions and decrease the negative impact on marine environments.

“The maritime market, particularly offshore, needs more Jones Act vessels to support the line-up of offshore wind, liquefied natural gas (LNG), and petroleum projects currently in the pipeline.

“Economic uncertainty, along with the lack of a clear choice on fuel types, stalled the investment in new ships for too long. As a country we need to invest in building Jones Act-compliant vessels and preparing existing and future mariners to service this bedrock industry,” highlights Childs.

SAFETY AND SALTCHUK MARINE

The safety of Saltchuk Marine employees, customers, partners, and vendors is paramount, and it is the company’s first priority. As such, the goal is to achieve zero incidents across all marine companies.

Saltchuk Marine therefore supports every employee in exercising their responsibility to their team, their families, and themselves to comply with safety rules and regulations, and Speak Up and Take Action when there are unsafe working conditions.

Proper procedures are maintained alongside requirements to help prevent incidents and review best practices with the hope that people will not only be safe at work, but at home too. A culture of safety within the organization helps to educate people, as Saltchuk Marine encourages employees to put these practices into action.

The whole Saltchuk Marine organization is committed to operating in a way which minimizes the negative impact on the environment. Its goal is to be an industry leader and innovator regarding its stewardship of the environment, as investments in clean technology and alternative fuels have set new standards in reducing carbon emissions and improving air quality in the transportation industry.

In fact, senators have recently introduced two bills: the Maritime Pollution Accountability Act and the Clean Shipping Act of 2023. The former aims to clean up the air around port communities and will impose a pollution fee on large vessels offloading cargo in the US, whereas the latter will establish a baseline next year for GHG emission intensity with the requirement that it is cut by 45 percent by 2030.

A BENEVOLENT ORGANIZATION

Charitable acts are a cornerstone of Saltchuk Resources. Last year, the organization pledged $500,000 to support the launch and sustenance of Maritime High School, in which Foss Maritime, TOTE, and NorthStar Energy were also involved.

The donation is an investment in the future of maritime careers as this year the second freshman class gathered to launch four hand-built

canoes. The school, based in Des Moines, Washington, uses projectbased learning and STEM education to encourage and inspire students to consider maritime careers.

By graduation, students will have the skills to pursue a maritime vocation. Next year’s freshmen will build a different type of boat, but each canoe so far has been built for the Duwamish River – a major shipping route for containerized and bulk cargo.

Furthermore, Saltchuk’s Hawaiian companies and employees proudly support their communities by giving time, money, and services to organizations and causes that matter to them. Indeed, financial and in-kind support to local charities and organizations in 2022 exceeded $300,000.

One of Saltchuk’s Hawaiian companies’ proudest achievements is sponsoring dozens of island students in the distance learning EMBA program at the University of Hawaii’s Shidler College of Business.

In fact, during the COVID-19 pandemic in 2020, the Saltchuk Giving Initiative donated $60,000 to local food banks in the Hawaii region. Four food banks benefited from the charitable act – two on the island of Oahu, one on the island of Kauai, and one on the island of Maui, each receiving $15,000.

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Investing in community is at the heart of what it means to be a Saltchuk company. Over the last five years, Saltchuk companies have given an average of $4 million each year, totaling more than $21 million in cash and in-kind support to the communities in which it operates. Most recently in 2022, Saltchuk companies contributed $5.7 million in cash grants and in-kind services to the communities where employees live and work.

AN OHANA OF COMPANIES

As an organization, Saltchuk Resources has many divisions, including air cargo, domestic shipping, energy distribution, international shipping, and logistics, alongside Saltchuk Marine. The regions connected by Saltchuk are the Caribbean, Florida, Alaska, and Hawaii. Its vision is to build a family of the best transportation and distribution companies in North America that are focused on serving customers within harbors, coastlines, and offshore markets.

SALTCHUK MARINE –SERVICES AT A GLANCE

AmNav – Marine and harbor services along the West Coast

CITB – Ship assistance and harbor services in the Port of Anchorage, Cook Inlet, North Slope Prudhoe Bay, Seward, Southeast Alaska, Aleutian Islands, and Western Alaska

Foss Maritime – Marine transportation services, renewable energy, harbor services, and terminal services

Young Brothers – Hawaii interisland freight services and charter vessels

Foss Offshore Wind – providing laydown, supply, transportation and installation services to the US offshore wind industry

ship management solutions to government, commercial and private ship owners.

Saltchuk companies often join forces, with Young Brothers, one of Saltchuk Marine’s companies, and Aloha Air Cargo connecting the islands of Hawaii, providing reliable shipments of everything from groceries to construction supplies.

Young Brothers is Hawaii’s leading freight and transportation company with the Port of Honolulu as its statewide hub. Whereas Foss Maritime, also in the Saltchuk Marine division offers ship assists, regional towing, barge charters and related marine services throughout the Hawaiian islands and into the Pacific.

Saltchuk Aviation also serves Hawaii, alongside Alaska and the Caribbean. It comprises operating brands Aloha Air Cargo, Northern Air Cargo, StratAir and Ryanair with the latter as its most recent addition.

However, Saltchuk’s first company was in domestic shipping and is now its largest line of business. TOTE Maritime, the oldest company in the Saltchuk portfolio, provides essential cargo services to Alaska and Puerto Rico. TOTE Services provides

The rich history, exciting growth, and innovation of these two companies make domestic shipping a constant source of pride for Saltchuk, with TOTE Maritime’s two domestic liner businesses announcing they would be the first in the history of the US to convert its fleet to operate on LNG.

Saltchuk’s energy distribution mainly consists of NorthStar Energy providing critical fuel and lubricants to residential, mining, fishery, and construction customers in Alaska, Montana, California and Hawaii. Furthermore, it brings a strong culture of safety and responsibility to the Saltchuk family of companies as well as being dedicated to the protection of the pristine environments in which they operate.

While international shipping is a newer addition to the Saltchuk family of companies, Tropical Shipping has already been established in the Caribbean and beyond for 60 years, providing the fastest and most reliable transportation and logistics services to the Bahamas, Puerto Rico and the Caribbean.

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MARINE NORTH AMERICA
SALTCHUK
BAY SHIP & YACHT CO. IS THE PREMIER REFIT AND REPAIR SOURCE FOR VESSELS TRANSITING THE CALIFORNIA COAST BSY serves all types of vessels from 100-400 feet in length with two drydocks and a ship elevator with level land modular workspace. BSY is equipped with all support services along with cranes and shops for specialized systems, fabrication, machining, and high-end carpentry. BSY’s best attribute is its highly skilled and dedicated workforce. BSY has a strong practice of training and promotion which allows the company to retain its top performers and provide the stage for them to grow. It is Bay Ship and Yacht Co.’s stated to goal to “absolutely satisfy” its customers. This is accomplished by providing a great experience in a clean and efficient yard where the point is to ensure that new customers become repeat customers and returning customers receive the same high-quality service at every visit to the yard. CONTACT US www.bay-ship.com info@bay-ship.com Michael Stoecker Sales & Marketing Manager (510) 337-9122 B I G O I L F I S H I N G C L U B C O N T A C T T O D D M C K E N N A B G O L 8 8 @ Y A H O O C O M 5 6 1 - 9 1 7 - 5 1 4 6 OLD SCHOOL TODD MCKENNA • K E E P S I T • T H A N K Y O U S A L T C H U K F O R Y O U R 3 0 + G R E A T Y E A R S . L O O K I N G F O R W A R D T O 3 0 M O R E . I ♡ S A L T C H U K Supply Chain Outlook Issue 1 | 213 SALTCHUK MARINE NORTH AMERICA

Concluding the family of companies is Saltchuk Logistics, which has independently operated Carlile, Shoreside Logistics, and Naniq Global Logistics with a commitment to solving global supply chain challenges.

NEW NAUTICAL HORIZONS

In 2022, Saltchuk Marine purchased a plot of land and began the construction of the New Bedford Foss Marine Terminal, after sharing a vision with a local investment group that the site could be repurposed to something beneficial to all while still being tied to the electrical generation sector.

Saltchuk Marine has built, and is operating, the new terminal at the Port of New Bedford to support offshore wind developments.

The company worked with a local group to purchase a fueling depot site and transition it to a renewable energy terminal. Demolition crews worked

OTHER SALTCHUK BUSINESS UNITS

Air Cargo – StratAir, StratAir Puerto Rico, Ryan Air, NAMS, NAC, Aloha Tech Ops, and Aloha Air Cargo

Domestic Shipping – TOTE Services, TOTE Maritime Alaska, TOTE Maritime Puerto Rico, First Coast Terminals, and Puerto Rico Terminals

Energy Distribution – Alaska Petroleum Distributing, CityServiceValcon, Delta Western Petroleum, The Jankovich Company, Inlet Energy, Hawaii Petroleum, and Minit Stop

International Shipping – Tropical Shipping and TOTE Maritime Puerto Rico

Logistics – Carlile, Naniq Global Logistics, and Shoreside Logistics

hard to demolish the site and it is now under construction to eventually serve the US offshore wind industry.

“We are going to safely and efficiently grow our marine business while looking for market opportunities that leverage our current strengths. We also continue to incorporate technology to benefit mariners and shoreside staff by improving the information they receive and reduce the time and effort required to receive it,” outlines Childs.

As a leader in harbor towage, Saltchuk Marine will champion the cause within the industry and work with the entire supply chain to increase cooperation and drive alignment on regulatory and market changes.

“We are also leading the way on whale avoidance training and other marine wildlife initiatives,” he assures.

Further along in the year, the New Bedford Foss Marine Terminal will begin service as a central hub for offshore wind developers requiring office space, a marine coordination center, crew transfer vessels (CTVs) and service operation vessels (SOVs), service and support, storage and marshalling, warehousing and a workshop.

The terminal will also serve as an induction center to process and certify offshore wind workers prior to departing for wind farms, and house new office space for project teams, crew marshalling facilities, workspaces and a marine coordination center for technicians

supporting the Massachusetts offshore wind industry.

“Our new terminal is a longterm investment that fits well with our culture and strategy. We are proud to be creating great jobs in an underserved community and contributing to the development of safe and reliable alternative energy,” Childs concludes.

“We will continue to pursue opportunities that fit our profile and are a very acquisitive corporation.”

The terminal is set to revitalize the Port of New Bedford by providing critical support to the offshore wind industry.

The site was selected for its proximity to offshore wind blocks located approximately 15 miles south of Martha’s Vineyard and Nantucket Island. It will provide storage and laydown yards for equipment and materials, berth facilities for tug and barge operations, and host CTV and SOV support services.

With its reputation, innovation, and the long and storied history of its operating companies, Saltchuk Marine is the future of the US waterways and beyond.

Tel: 206.652.1111

www.saltchukmarine.com

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Schuyler Rubber has been the proud supplier of rubber fendering for

Our laminated rubber utilizes post-consumer tire treads to make the most durable and eco-friendly fenders available in the market today. We are grateful to Foss and Saltchuk for their support of green maritime products and a rich history of local partnership.

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Tell us your story and we’ll tell the world Supply Chain Outlook Issue 1 | 215 SALTCHUK MARINE NORTH AMERICA

AN ELITE FOOD DELIVERY FLEET

America’s Service Line is considered the carrier of choice when it comes to delivering both refrigerated and dry food products across the US.

President, Scott Willert, tells us more

Founded in 1996 to support American Foods Group by ensuring the timely and costeffective delivery of its meat products, America’s Service Line (ASL) has been on a steady trajectory of growth to support shippers and suppliers across 48 US states.

“Our mission is delivering excellence daily to our customers, employees, and stakeholders,” opens Scott Willert, ASL’s President.

“We accomplish this by working to be the Shipper of Choice and Carrier of Choice for American Foods Group and our other business partners,” he adds.

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Supply Chain Outlook Issue 1 | 217 AMERICA’S SERVICE LINE NORTH AMERICA
FOOD FLEET

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ASL’s primary role is serving as the private fleet for American Foods Group, the fifth largest beef processor in the US. The company’s sizable fleet boasts over 300 tractors, 600 refrigerated trailers, a fully active truck and trailer maintenance facility, and a professionally staffed office of logistics professionals. All of this is supported by around 400 employees and independent contractors.

“Our private fleets have for-hire authority, which enables us to service other shippers’ freight, allowing us to fully utilize our equipment, provide competitive pay to our employees, and generate revenue for our stakeholders,” Willert explains.

In addition, each of ASL’s trailers is equipped with state-of-theart technology for tracking and temperature control purposes, whilst technologies for GPS, communication, and navigation are also utilized.

Despite challenges within the US transportation industry, such as unstable freight rates and industry capacity shrinkage, ASL remains resilient.

“The key ingredient to ensure our success is being the employer of choice to attract and retain the best employees in the industry,” he asserts.

CULTIVATING GREATNESS

Taking great care to hire the right people for its team, ASL prides itself on having cultivated a company culture and work environment that its people appreciate, differentiating it from other employers.

“The number one differentiator for us is our culture. We get many comments from new employees and visitors who say you can feel the difference when you enter the building and from talking to our people,” enthuses Willert.

SUPPLY CHAIN OUTLOOK: WHAT IS YOUR TAKE ON THE TRANSPORTATION INDUSTRY IN NORTH AMERICA TODAY?

Scott Willert, President: “The transportation industry remains in a challenging position, even more so for brokers. The spot market is very soft with demand and rates staying very low.

“For trucking companies that depend mostly on contractual freight, their rates and volumes are a bit more stable.

“Requests for proposal (RFPs) by shippers have slowed down a bit in 2024 compared to 2023. In 2024, freight rates are stabilizing as supply and demand normalize.

“Thousands of trucking companies have gone out of business in the last year or so, and industry capacity is shrinking as demand is starting to increase. Shippers and logistics service providers (LSPs) that are more strategic, and consider their carriers as true partners, understand that trucking companies truly can’t afford to lower their rates anymore.

“Those shippers that are only concerned about price continue to try to push rates down. They will soon find themselves having to depend on brokers and the spot market or face significant increases from their carriers.

“It’s part of the cycle that our industry goes through, but this cycle has been a little different, mainly due to the COVID-19 pandemic.”

“THE STAFF AT THE VALUE

Fish team 220 | Supply Chain Outlook Issue 1 AMERICA’S SERVICE LINE NORTH AMERICA
ASL ARE THE BEST I’VE EVER WORKED WITH, AND THEY UNDERSTAND
THE WORK ENVIRONMENT AND CULTURE THAT WE’VE BUILT”
– SCOTT WILLERT, PRESIDENT, AMERICA’S SERVICE LINE
VALUE
OF
US Secretary of Transportation, Pete Buttigieg, meets ASL staff Driver appreciation group Supply Chain Outlook Issue 1 | 221

Wisconsin Kenworth, a subsidiary of CSM Companies, has seven locations throughout the state, including Madison, Fond Du Lac, Green Bay, La Crosse, Menomonie, Milwaukee, and Wausau. CSM Companies represents the highest quality, most reliable products in the industry. We strive to exceed the expectations of our customers by focusing every part of our organization on delivering sound, innovative and economical solutions that ensure maximum vehicle up-time.

We Provide – We Create – We Grow – We Excel Locations: Madison • Fond Du Lac • Green Bay • La Crosse Menomonie • Milwaukee • Wausau 920-247-2969 customer.help@csmtruck.com www.WisconsinKenworth.com

Providing development opportunities for its staff at all levels, ASL is confident that its team members’ growth mindset helps them to thrive.

“Our team members have a continuous improvement mindset. They all understand that we must continue to get better in everything that we do, or our competition will catch up,” he reveals.

Additionally, an open-door policy throughout the company works to ensure that staff always feel heard. Managers’ and team leaders’ doors are always open, physically and metaphorically.

“Our open-door policy is like none other and brings drivers and staff together to maintain healthy communication,” he explains.

Furthermore, ASL does a lot of work to

support the communities it serves and the environment around it.

“Our employees enjoy the camaraderie and satisfaction that they get from making a difference,” he reveals.

“We’re continually testing new products and technologies for improved safety, cost savings, and to be more environmentally friendly or green,” Willert shares.

As a US Environmental Protection Agency (EPA) SmartWay certified

carrier, ASL made the EPA’s high performer list for being a progressive and environmentally minded trucking company in 2023.

“The requirements to be a SmartWay certified carrier are stringent, and to be considered one of their best is a very big accomplishment,” he tells us.

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Hybrid trucks
Supply Chain Outlook Issue 1 | 225 AMERICA’S SERVICE LINE NORTH AMERICA

EMPOWERED EXPANSION

Having moved into its flagship site in Green Bay, Wisconsin, in 1996, ASL had no idea how rapidly the business would grow. Fast forward to today, and the company has expanded its already vast site.

“Our building remodel created more and better space for our office staff and drivers when they’re at the terminal. We have a full kitchen, lounge, training room, exercise equipment, washers, dryers, and showers that our drivers enjoy and appreciate,” Willert details.

The expansion and renovation have also allowed ASL to provide space for future growth and improve the aesthetics of the site.

Looking towards future growth, American Foods Group is currently in the process of building a new plant in Warren County, Missouri, due to open in January 2025.

“ASL and the transportation team are working on plans to support the new plant. This is exciting for all our people and provides a lot of opportunity for our people and our business,” Willert outlines.

To support the new plant, the company’s leadership team is working on a long-term strategy. The team will support the new facility, support the current business and customer base, and grow organically and inorganically.

SUPPORTING STAFF AND SUPPLY CHAIN

To empower its employees, ASL integrates many staff recognition drives. The company provides recognition for milestones, often celebrating achievements daily.

“Everyone is different in what they want and value in recognition, and we try to understand that,” Willert comments.

Therefore, a range of different initiatives take place at ASL, including an awards banquet geared towards

AMERICAN FOODS GROUP –AT A GLANCE

• As a small-town food group on a national scale, American Foods Group is more than just a beef processing company – it considers itself a support network for the communities in which it thrives.

• Employing over 4,500 staff across the country, American Foods Group has been family-run for over 70 years. The company brings common sense into every aspect of its beef production and prides itself on not taking shortcuts or cutting corners.

• ASL’s values and ethos align closely with American Foods Group, as it strives to work in unison with employees to provide safe, wholesome meat.

• With nearly 20 years of experience in the transportation industry, ASL is American Foods Group’s choice for moving both refrigerated and dry products that require time-sensitive

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drivers, an annual truck rodeo, and even a Fun Committee.

“We have different committees to make sure we’re always getting better and having fun doing it. We’re always trying to enhance how we provide recognition for our people and our team,” he details.

In terms of upskilling staff, all of ASL’s drivers are encouraged to participate in a defensive driving course through a local technical college, whilst new drivers take part in a Smith System course administered by a certified in-house trainer.

ASL also provides cloud-based training for its drivers, focusing on safety topics. Leadership development is also emphasized.

“We take leadership development very seriously. Our leaders and aspiring leaders participate in internal and external training to develop and hone their skills,” Willert expounds.

In terms of its supply chain, ASL has many long-term partnerships with vendors and suppliers, which it values greatly.

“We try not to be short-term thinkers or be shortsighted in our relationships with our partners, and we generally get the same in return,” he summarizes.

TRUCKING ALONG

Looking to the future, and as 2024 unfolds, ASL is refreshing its strategic plans and evaluating how it can bring more value to customers, business partners, and team members.

“We understand that change will happen regardless of whether we want it to or not, and we want to control our own destiny,” reveals Willert.

ASL intends to grow its fleet to support American Foods Group’s recent growth. This growth could include the acquisition of an additional trucking company.

“We’ll also be growing our carrier and supplier bases to help us with this as well, and we’re carefully evaluating these companies to make sure that we partner with the right people,” he explains.

An important part of ASL’s future expansion will include growing its logistics business, America’s Logistics.

Of late, capacity requirements within the transportation industry have not benefited brokerages, meaning ASL hasn’t put a lot of focus on logistics activities.

“Now that volumes are starting to grow, and the market is swinging back, we’ll put more effort there and work to add to the shippers and customers that America’s Logistics manages transportation for,” Willert concludes.

Tel: (800) 345-0293 swillert@americanfoodsgroup.com www.americasserviceline.com Supply Chain Outlook Issue 1 | 227

A company built to deliver the right result, every time, Storage Solutions is an industry leader in material handling storage and automation system integration. We speak to Nathan Storey, CEO and President, to find out more

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Writer: Lauren Kania | Project Manager: Scarlett Burke

SIMPLE, SMART, STRATEGIC

Beginning in 1978 with nothing more than a humble office in Carmel, Indiana, and a desire to revolutionize the supply chain sector, Storage Solutions has witnessed the industry evolve rapidly over the past 46 years, working with its clients and suppliers to adapt alongside it. Having grown to become a leader

in integrating material handling and automation solutions for warehouses, distribution centers, and fulfillment centers, Storage Solutions has demonstrated its ability to adapt, evolve, and grow to meet its customers’ dynamic needs, all while expanding its operations across the entirety of the US.

Nathan Storey, CEO and President

of Storage Solutions, began his career in sales fresh out of college in 2006, immediately falling in love with the industry and its diverse set of clients.

“The amount of innovation happening has always been extremely exciting, especially with our customers’ needs continuously changing and evolving,” he opens.

Supply Chain Outlook Issue 1 | 229

“We have to continue to push the limit with faster deliveries, more throughput ways to optimize material flow within warehouses, and stay up to date with the current technologies and trends.”

Having viewed Storage Solutions and its clients through a variety of lenses for nearly two decades, Storey was appointed CEO and President in July of 2023 and intends to utilize this leadership position to march the company toward its vision of implementing smart solutions for businesses’ warehouse spaces without surprises.

Committed to being a trusted partner that guides companies through every step of a project’s lifecycle, Storage Solutions utilizes a holistic approach to deliver turnkey services and develop an array of solutions to fit companies’ unique facility needs, budgets, and timelines.

Whether a project is 2,000 square feet (sqft) or two million, its team is equipped with the right expertise and experience to get the job done.

EXPERTS IN WAREHOUSE SOLUTIONS

Built with a growth mindset, Storage Solutions has paved the way in material handling and automation integration and continues to grow in size, skill, and scope of capabilities with its team of seasoned experts who collaborate and partner with distribution and fulfillment operations throughout North America.

“We are a pure integrator in every sense of the word, meaning we don’t make any products, and we rely on partnerships with both original equipment manufacturers (OEMs) and our customers,” expands Storey.

“Any type of project-based business, storage racking, shelving, or

automation is what we do, as well as providing engineering services to help companies with material flow design.”

Automation, in particular, is a vast and extremely topical theme within the industry at the moment.

Many companies are looking for creative ways to handle increased demand and guarantee their facilities are running as efficiently as possible whilst ensuring that the plan they have in place will sustain continued growth.

Storage Solutions has proven itself to be an expert in warehouse automation, offering strategies to work with customers’ existing operations and techniques, as well as introducing new technology to ensure businesses accomplish their throughput goals.

The company’s philosophy is to use automation solutions to eliminate as much walking and forklift travel as possible for warehouses, fulfillment

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SSI AGV Jungheinrich Rocrich SSI Conveyor Example SSI Storage SSI Conveyor Shelving
Study: DoMyOwn.com Warehouse
SSI Conveyor
Case
Shuttle Pallet Runner
SSI Pallet

STORAGE SOLUTIONS’ SERVICES

• Conveyor and sortation solutions

• Automated warehouse robotics

• Goods-to-person picking systems

• Automated pallet handling

• Automated packaging systems

• Technology solutions

• Facility design and assessment

• Warehouse design and layout

• Automation assessment

• Warehouse optimization

• Smart slotting

• Simple solutions

• Dense solutions

• Picking solutions

• Specialty solutions

• Safety equipment

• Turnkey services

“IT’S THAT DEEP-ROOTED PARTNERSHIP WE HAVE WITH OUR CLIENTS AND LONG-TERM RELATIONSHIPS WITH OUR SUPPLIERS THAT SEPARATES US FROM THE COMPETITION”
– NATHAN STOREY, CEO AND PRESIDENT, STORAGE SOLUTIONS

centers, and distribution centers, as these are the most costly and least reliable functions in a given facility.

“Automation is huge; it gives us the ability to satisfy some of the biggest challenges in the workforce right now, and we’re able to provide solutions that are all-encompassing, from pallet shuttle to conveyor and sortation to goods-to-person solutions to robotic arms and more,” emphasizes Storey.

In a time when technological advances are so rapid it can feel like a relentless battle to keep up with the progress, Storage Solutions is proud to provide data-driven automated

warehouse fulfillment solutions to increase businesses’ productivity.

TAKING A PARTNERSHIP APPROACH

It’s no secret that customer demand is changing, and the company is evolving to address these challenges with a commonsense approach that highlights a foundation of trust between the team and its clients.

“We look at everything from a partnership mindset. We want to get in with clients and work alongside them because we have the same objectives,” explains Storey.

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SSI VLM Conveyor Modula

OUR SERVICES

ABOUT OUR COMPANY

For over 60 years, Speedrack has been a pioneer in storage solutions, renowned for our innovate tubular rack design and e-commerce-optimized storage solutions. We are committed to harnessing cutting-edge technology and collaborating with industry leaders like Storage Solutions to deliver premier solutions that anticipate our customer’s needs.

OUR GOALS

At Speedrack, we prioritize building long-lasting relationships. Our aim is to be your dedicated resource throughout the entire project, guaranteeing exceptional customer service and delivering outstanding results.

Manufacturing: State-of-the-art facilities driven by advanced production methods honed over decades of experience. We are proud to announce our recent ISO 9001 certification, showcasing our commitment to excellence.

Speedrack’s Engineering team will design a storage solution that offers safety combined with maximum space utilization for all types of racking needs.

Project Management: We’re excited to introduce our comprehensive project management services Explore our new offerings and let us be your first choice for every stage of your project.

D E L I V E R I N G P R E M I E R S O L U T I O N S “Proud to be 100% Employee-Owned” 3060 S Industrial Dr., Walker, MI 49544 616-887-0002 speedrack.net

WHY PARTNER WITH STORAGE SOLUTIONS?

SIMPLE: Every day, there seems to be new technology or innovation making waves within the industry, and admittedly, it can feel a bit overwhelming. Storage Solutions is here to make the implementation of the latest technologies simple by helping companies determine the best fit for their operations. Whether it’s making the picking process more accurate or increasing overall productivity, Storage Solutions has the knowledge and experience to get it done.

SMART: The company’s wide range of solutions can help businesses become more efficient, lower costs, and improve safety. Storage Solutions’ team of experts help find the right solutions to grow businesses efficiently through the use of technology. The company works with clients every step of the way to ensure that they receive the support and education needed to get up and running.

STRATEGIC: Planning the next generation of warehouse solutions can be intimidating. The Storage Solutions team removes these worries with technology solutions that help any warehouse run smoother with the right planning and implementation strategies.

“Our goal is to collaborate and make sure that we understand where a company is today and ultimately where it wants to be in the future.”

This environment of trust allows clients to feel confident that Storage Solutions’ expertise can help them find the answers to the most unique needs with the flexibility to scale as an operation grows.

Additionally, this approach means that the company can seamlessly develop and design the optimal solution no matter the scenario, whether it is starting up a new facility, adapting to a change in demand, or even relocating a client’s operations.

“It can be a challenge, but our company is one that enjoys helping customers solve these problems. That is what we build our business on – overcoming customers’ pains alongside them,” enthuses Storey.

“We don’t just put a bandage on something for a quick fix; we strive to be the solution that lasts well into the future.”

Taking the initiative to consistently research and stay on top of innovations in the industry is what makes Storage Solutions unique, and the family-like customer service and dedication toward finding the optimal solution for every situation is what truly sets the company apart from the rest.

A SMART CHOICE FOR THE FUTURE

Having recently embarked on transformative ventures, including being acquired by renowned German intralogistics pioneer, Jungheinrich AG, Storage Solutions is bolstering the size, breadth, and expertise of its team and comprehensive suite of warehouse solutions as the company looks toward the future.

“We want to be the smart, strategic resource for our partners, looking at not only the challenges that are being faced today, but the future issues that can be tackled right now,” insights Storey.

234 | Supply Chain Outlook Issue 1 STORAGE SOLUTIONS NORTH AMERICA
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excited about the opportunities that the supply chain industry is expected to present, as it is anticipated that companies are going to continue to expand their footprints and look for ways to deliver goods faster and more accurately.

“We’re excited about all of the opportunities with our current and future clients and helping them overcome challenges and achieve company objectives,” he continues.

In addition to the ambitious goals that Storage Solutions is ready to face head-on, it is focusing on empowering the staff who work daily to contribute to a history of long-standing success.

“Our employees are our number one asset. They are on the front lines and are, ultimately, the face of our company,” explains Storey.

Ensuring that Storage Solutions’ mission of embodying a partnership mentality is embraced by every team member, the company provides training and continuous opportunities for improvement to allow its staff to grow into confident leaders within their respective fields.

With this mindset, Storage Solutions aligns to create successful outcomes for its teams, projects, and clients. Once aligned, this

creates an environment where mistakes, weaknesses, and areas of improvement can be identified without fear of repercussions.

“We have built a strong culture around our core values and our purpose as a company. We have a very low employee turnover because every person buys into the vision we believe in, the environment we provide, and the success we achieve working cohesively together,” concludes Storey.

Tel: (317) 210-1790 storage-solutions.com
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236 | Supply Chain Outlook Issue 1
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Maximizing Space Minimizing Costs

At Engineered Products, we’re focused on one thing— maximizing space. We’ve provided material handling and storage solutions to warehouses for over half a century. And while our solutions maximize space and operational capabilities, they also minimize costs. Every inch and every dime is optimized at Engineered Products.

At Engineered Products, we specialize in overcoming these and the many other obstacles that can plague material handling systems and affect your bottom line. Some of our specialties include Structural Pallet Rack, Gravity Flow Systems, and ASRS/Rack supported structures.

With almost 70 years of experience under our belts, we are confident we can find the storage solution your business needs. Whether it’s better-utilizing your current warehouse space, overhauling your order picking system or creating a rack-supported storage facility from the ground up, we pride ourselves in our ability to create customerspecific storage solutions that fit your budget and your unique needs.

Wize Solutions is a national leader in material handling integration solutions. With successful projects across all 50 states as well as Australia, Canada, Japan, Mexico and more. Wize has the experience, industry relationships and high standards to get the job done safely and on time.

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Wize crews have hundreds of years of combined experience in installing all types of pallet racking systems. Drive-In, Selective, Tube Rack, Pallet Shuttle, Mezzanines, Pick Modules, Lockers, Cantilever, Pallet Flow, Push Back. We will do it all.

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CONTACT US Main contact: Jace Striplin | Distribution Sales Manager Phone: (864) 884-6824 Leadership: Tommy Sinclair | CEO Phone: (864) 630-1249 Scott Hall | Executive Vice President Phone: (864) 423-5795 EngProd.com
Supply Chain Outlook Issue 1 | 237 STORAGE SOLUTIONS NORTH AMERICA
SSI Multi-Conveyor

DELIVERING EXCELLENCE NIGHT AND DAY

Beginning with one man, a truck, and the passion to create a better experience for transportation needs that exceeded what the market was offering, Lanter Delivery Systems has become a major player in the US supply chain. We speak to Steve Lanter, CEO, to learn more

LANTER DELIVERY SYSTEMS NORTH AMERICA 238 | Supply Chain Outlook Issue 1

DAY

The delivery services industry has an extensive history that continues to shape the global economy with its endless advancements and innovation.

No company recognizes the critical nature of this evolution more than Lanter Delivery Systems (Lanter), having borne witness to myriad changes within the industry for over

40 years, becoming a recognized leader within the sector.

Steve Lanter, CEO, was raised in the trucking industry, crediting his father for not only blazing the trails by initiating the long-standing business but for inspiring the family-oriented and relationship-based culture that has become embedded in the company’s DNA.

“One of the lessons my dad taught me was that if you provide exceptional service, have great relationships with your customers, and deliver a solution that adds value, you’re always going to be in business. This has been our winning formula for over four decades,” he opens.

This belief in working with honesty and integrity has allowed Lanter to

Supply Chain Outlook Issue 1 | 239

see exponential growth and retain long-lasting customers who are confident in the company’s ability to provide dedicated quality and shared value.

Serving customers nationwide in essential industries, including automotive, agricultural, heavy trucking, and industrial, Lanter’s network spans 48 states with approximately 90 hubs and forward cross-docks and makes over 11,000 stops every night, Monday through to Saturday.

“At Lanter, we take immense pride in ensuring that every team member, regardless of their level or position in the delivery process, understands the critical role they play in getting vehicles back on the road and tractors back in the field,” notes Steve.

“Whether it’s a single parent’s car, driver’s truck, or any other vehicle, our commitment to providing excellent service makes a tangible difference in our customers’ lives and the lives of their customers.”

One of the most distinctive qualities of the company is that it runs the most extensive shared network of anybody in the country, allowing Lanter to develop a customized, detailed delivery plan that ensures even the most specific of needs are met and that all safety and security standards are aligned.

Ultimately, when in need of a fast, reliable, and time-tested delivery of parts and materials anywhere in the continental US, Lanter is the go-to choice.

240 | Supply Chain Outlook Issue 1 LANTER DELIVERY SYSTEMS NORTH AMERICA
“ONE OF THE LESSONS MY DAD TAUGHT ME IS THAT IF YOU PROVIDE EXCEPTIONAL SERVICE, HAVE GREAT RELATIONSHIPS WITH YOUR CUSTOMERS, AND DELIVER A SOLUTION THAT ADDS VALUE, YOU’RE ALWAYS GOING TO BE IN BUSINESS. THIS HAS BEEN OUR WINNING FORMULA FOR OVER FOUR DECADES”
– STEVE LANTER, CEO, LANTER DELIVERY SYSTEMS

DELIVERY OPTIONS FOR EVERYONE

The company represents the classic American business success story, having become a leader in the overnight delivery of critical parts and daily stock orders, with countless companies and their customers relying on its nationwide network to deliver various goods.

This, understandably, requires dedication, timeliness, and synchronous teamwork to meet such high expectations.

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Rugged Mobility Solution Improves Productivity for Lanter Delivery Systems

Lanter Delivery Systems is recognized as a premier overnight, unattended delivery solution provider in the transportation and logistics industry. The company operates in every state throughout the continental U.S., providing overnight product and parts delivery services for the automotive, agricultural, heavy industrial and heavy trucking industries.

Over the last 30 years, Lanter created a custom-built delivery service, making their overnight delivery solution possible. But Lanter had quickly outgrown the capabilities of their original field devices, which relied on consumer mobile technology not designed for the rugged and demanding conditions Lanter drivers encounter. Devices were continually breaking and unable to scan quickly, efficiently, or perform at the highly-productive speeds that Lanter’s drivers required.

Lanter was in search of an end-to-end rugged mobility solution that would help them improve scanning operations in both driver and dock applications and increase productivity and efficiency. To achieve their goals, Lanter partnered with long-time provider and leading automation systems integrator, Peak Technologies, and their industry-leading partner and device manufacturer, Honeywell

Peak and Honeywell recommended the Honeywell CT45 XP rugged mobile computer to replace Lanter’s current, ineffective, consumergrade mobility solution. The Honeywell CT45 XP is a rugged, all-purpose mobile computer that ensures ultra-reliable performance, data connectivity, and communications for front-line mobile workers. In addition, the CT45 XP leverages the latest Wi-Fi 6 technology to facilitate always-on connectivity, and is built on Mobility Edge™, Honeywell’s durable, stable, and secure platform that increases device lifecycle, enhances security, and accelerates deployment into Lanter’s existing network. Lanter also invested in several accessories to help with the device’s ergonomics in different workflows, and Peak service contracts to help them configure, kit, and deploy the mobile computers. Peak and Honeywell provided critical project support services to implement the new mobility solution for Lanter. The team provided on-site demonstrations of the CT45 XP units at two Lanter sites to showcase its ease of use and data connectivity in Lanter’s environment.

As one of the largest solution partners in the data automation industry, Peak provided the company size, logistics and warehousing industry experience, and deep expertise in mobility solutions Lanter needed to support the new technology being rolled out to their workforce. Additionally, Peak’s experience with freight companies and global presence—particularly in Europe—provided Lanter with the 24/7 global support they required for their new devices.

Peak handled the staging and kitting of all Honeywell CT45 XP units, including loading software, testing, delivery support, and startup at over 90 Lanter locations. Peak also provided expert on-site support at several locations as the devices were being rolled out to help resolve any technical difficulties that should arise.

On an ongoing basis, Peak Technologies is supporting the Lanter solution with Mobile Device Management (MDM) and 24/7 help desk support, which is crucial to Lanter’s overnight delivery model.

Since implementing the solution, Lanter has seen substantial gains in worker productivity, allowing them to advance company growth to align with strategic goals. The partnership with Peak Technologies and Honeywell has provided measurable improvement to Lanter’s delivery systems.

“Working at Lanter necessitates passion; it’s not just a nine-to-five job. With delivery commitments throughout the night and into the morning, success requires a tightly managed series of events,” expands Steve.

“You have to care, be a great communicator, and address issues head-on without hesitation.”

Attention to detail and a flexible logistics system is what has allowed the company to achieve an enviable

track record of 98 percent on-time delivery.

Lanter offers different delivery options to accommodate its clients’ distribution requirements, all of which are designed to ensure all freight is delivered safely and on schedule while incorporating sustainable and environmentally-friendly practices in the process.

Lanter’s core service offering of unattended night delivery not only

LANTER’S NON-NEGOTIABLES

WALK IN HUMBLE CONFIDENCE: Employees are experts at what they do, but never assume that they know everything.

BE OPEN, HONEST, AND RESPECTFUL: Say what has to be said in a tactful, courteous way.

BE FEARLESS: One never fails, only learns.

BE ONE TEAM: Everyone achieves more together through collaboration and consensus.

HAVE A PASSION TO SERVE: Lanter is composed of dedicated, hardworking individuals who provide exceptional service to customers and each other.

STRIVE FOR OPERATIONAL EXCELLENCE: The team is dedicated to a culture of continuous improvement, driving superior quality, and productivity.

PUT SAFETY FIRST: Lanter prioritizes the safety of its team members and customers above all else.

DELIVER ON COMMITMENTS: The company’s employees will do what they say they will do.

provides convenience and efficiency for its clients but also supports its green initiatives. By arranging the pick-up of shipments from clients’ regionalized Parts Distribution Centers in the afternoon and delivering them to clients’ locations before the start of business the next day, Lanter helps reduce the need for additional freight storage on-site, thereby minimizing carbon footprint and promoting resource efficiency.

244 | Supply Chain Outlook Issue 1 LANTER DELIVERY SYSTEMS NORTH AMERICA

Qualified Workforce and Management Team

SLG Systems is your trusted 4PL (Fourth-Party Logistics) partner, distinguished by our unparalleled expertise in streamlining day-to-day operations. With a team of highly experienced operators and seasoned managers, we bring a wealth of warehousing and operations knowledge to the table, ensuring your business’ success is our top priority.

At SLG Systems, we embrace a grassroots approach to operations, firmly rooted in the belief that hard work and dedication are imperitive. We understand that success in logistics and supply chain management comes from the ground up, and our commitment to these principles sets us apart.

Discover the flexibility and expertise that SLG Systems brings to the table. Contact us today, and let’s discuss how we can tailor our solutions to your precise requirements.

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LDS CARES PROGRAM

Lanter’s commitment to the wellbeing of its team is both professional and personal. Based on the principle that ‘charity begins at home’, the LDS Cares program supports team members and their families who find themselves facing severe and unexpected hardships.

This program is available to others who collaborate to achieve the company’s goals and serve its customers. This includes workers, temporary staff, and personnel at various vendors and suppliers who embrace and exemplify the values in Lanter’s non-negotiables.

“We wanted to highlight that there is a need in our own communities and even our own company. It truly blows my mind just how life catches up with people. Ultimately, we want to make a difference locally and want our team to feel good that they work for an organization that is going to do its best to take care of people,”

Additional value-added benefits include end-to-end scanning for complete visibility of the shipment, a centralized customer service department for proactive alerts, an interactive customer web portal, and more.

Alongside these benefits, Lanter offers scheduled less than truckload (LTL) shipping, which provides companies with a daily, planned delivery cadence going to dealerships, stores, or branches at set times.

Finally, the company provides retail pool distribution, an aspect it is looking to expand even further in upcoming years. This form of distribution combines LTL shipments on fewer trucks and sorts them at terminals for final-mile delivery, significantly reducing the number of vehicles on the road and leading to lower emissions and decreased fuel consumption.

Overall, Lanter’s day and night freight transportation solutions enable high-volume shippers to ‘pool’ freight traveling to multiple destinations in full truckload quantities, resulting in cost savings, streamlined supply chains, and a greener footprint.

REACHING ONE BILLION

With an unparalleled track record, Lanter’s vision and goals for the future continue to be ambitious.

“Initially, we set a goal of trying to double in size over the course of five years. We were able to achieve that target in three years and then continued to set robust expansion goals that we worked hard to successfully meet,” enthuses Steve.

“As we look to the future, our next big goal is to become a billion-dollar company. To achieve this quest, we have an aggressive growth strategy.”

With the help of its partner, Equity Group Investments (EGI), the private investment firm founded by Sam Zell, Lanter has devised a three-legged strategic growth plan.

The first part of this strategy involves looking at the company’s night unattended business. This pre-8am delivery offers a unique opportunity for those looking to optimize their efficiency and reduce disruptions. This can range from industries in healthcare to automotive to food and beverage.

Leg two consists of leveraging overnight dock networks that normally sit idle during non-peak hours. This will allow the business to expand into same-day delivery, as many customers

246 | Supply Chain Outlook Issue 1 LANTER DELIVERY SYSTEMS NORTH AMERICA

are calling for assistance in getting core deliveries returned to shippers after other transport companies have gone under.

“The thought right now is, how can we make this network more productive? We believe that all freight candidates can fit into our network, so even if we aren’t able to deliver in the middle of the night, we can deliver on that final mile route,” explains Steve.

Finally, the third leg focuses on mergers and acquisitions (M&As), as Lanter believes there are businesses that will hugely benefit from this combination of resources.

In addition to these three pillars, the company is highlighting its IT strategy and providing customers with modern technology solutions that deliver visibility, transparency, and insight.

“Our technology-enabled business process final mile platform creates the experience shippers and customers are looking for in today’s highly demanding supply chain,” insights Steve.

The delivery platform Lanter offers is unique for each customer’s needs to ensure seamless distribution, transportation, and logistics solutions. Additionally, the technology and process enables package-level scanning, tracking and tracing, a

customer portal, data-enabling analysis and insights, industry-leading contactless delivery, and photo proof of delivery.

By continuing to fulfill its commitments, work with integrity, and maintain its reputation as the preeminent transportation and logistics provider in the crucial supply chain sector, the company will continue to expand its nationwide footprint and provide industry-leading service.

DRIVING TOWARDS SUCCESS

To summarize in a single word, Lanter’s workplace is dynamic. Something new is constantly happening, and the company boasts a vibrant, problem-solving environment ready to tackle anything that comes its way.

Operating throughout the entirety of the continental US, there is no place it can’t go to meet businesses’ logistical needs. This achievement is a tribute to the value the company prizes above all else – building deep, enduring relationships with the team and its customers.

These relationships have come to fruition and remain strong due to the founding principles that have helped shape the core of Lanter: its ‘non-negotiables’.

“We have eight non-negotiables that we live by, all revolving around how we treat one another and our clients,” notes Steve.

These non-negotiables stem from the top down, guiding the leaders in supporting and bringing out the best in everybody and helping the team create an environment that encourages growth on all levels.

“One thing that we do is lead a call where people share the nonnegotiables they used in the past two weeks or plan to use in the upcoming month. It started as a small 30-second chat that has now evolved into a whole presentation that people get excited about,” expands Steve.

This showcases the pride Lanter has in promoting not only open communication but creative innovation within its workspace.

The company’s strategic, processdriven approach has been embraced by the marketplace for over four decades and is continuing to set new service standards for the automotive, agricultural, heavy industrial, and heavy trucking industries.

Lanter envisions a bright future for the road ahead and is looking forward to bringing its proven solutions to many new industries.

Those at the company will continue to build long-lasting relationships as they push ahead to live and work by the well-established and familyoriented culture that has allowed Lanter to become an industry leader.

Tel: (618) 452-5300 discoverlanter@lanterds.com www.lanterdeliverysystems.com Supply Chain Outlook Issue 1 | 247 LANTER DELIVERY SYSTEMS NORTH AMERICA
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Supply Chain Outlook Issue 1 | 249

become the fastest way to link both terminals and reduce the distance between the two oceans. Furthermore, the ports are equipped with comprehensive facilities for handling containers, general cargo, bulk cargo, Ro-Ro, and passenger vessels.

Balboa’s location makes the port Latin America’s number one transshipping terminal, with an annual capacity of five million 20-foot equivalent units (TEU). The port has intermodal services, five berth positions for Panamax, Post Panamax, and Super Post Panamax vessels, a 1,710-meter dock, and 25 quay cranes.

The port at Cristobal allows for connection with the most crucial shipping routes in the Caribbean and the Atlantic Ocean with a two million TEU annual capacity. Its unique design, 13 quay cranes, three berth positions, and a 970-meter dock means managing a wide variety of services, including general cargo, reefer containers, non-containerized cargo, and warehouse.

PPC PLANS AND PROJECTS

EXAMPLES OF PPC’S ENVIRONMENTALLY-FRIENDLY PROJECTS INCLUDE:

• Conversion of rubber-tired gantry cranes (RTG) powered by diesel generator systems, used mainly for efficiently stacking containers in the yard to electricpowered RTGs, significantly reducing GHG emissions.

• Replacement of traditional high-mast lamps at its container yards with LED lights technology.

• Electrification of refrigerated container racks (reefer racks) that previously ran on fossil fuels and now provide power safely and efficiently, reducing the carbon emissions of its operations.

• Installation of motion sensors for lighting lamps in areas such as dining rooms and bathrooms.

• Replacement of traditional air-conditioners with inverter types which consume less energy, while adjusting the speed of the compressor to control the refrigerant gas flow rate, therefore consuming less current and power.

• Recycling programs include correctly disposing of paper, cardboard, cans, plastics, metals, electronic equipment, and industrial waste oils.

• Becoming a member of the Reduce Your Footprint initiative, a government pilot, to identify the GHG-emitting sources of operations and develop a baseline to start reducing them and reach neutrality. PPC is the first and only port operator in the country that is participating in the project carried out by the Panamanian Environmental Ministry.

PORTS PPC NORTH AMERICA
HUTCHISON
With more than 24 years of experience in the market and more than 1000 employees. A/C Maintenance Landscaping Painting Pest control Cleaning services Handyman We provide the best commercial service and residential. 6378-6813 procleanpma Good Services is a good bussines www.emeoutlookmag.com/work-with-us www.supplychain-outlook.com/subscribe Tell us your story and we’ll tell the world Complete marine engineering and construction services. Serving ports and terminal facilities in Panama and Latin America. +507 216-6024 | ventas@gruposetimsa.com | www.gruposetimsa.com Supply Chain Outlook Issue 1 | 251 HUTCHISON PORTS PPC NORTH AMERICA

focused on how it can better help support customers with operational planning, a level of innovation that will eventually reach the rest of the industry.

Currently, upon the arrival of a vessel ship, PPC unloads, loads, and handles the movement of containers. However, with the new approach, the shipping line will complete its end-toend planning together with PPC.

“We are one of the leading ports in this respect, working with our customers to do joint planning, and there are only one or two other ports globally looking at this business model. Although we are currently operating manually, the goal over the next five years is to be fully automatic and digitalized,” reveals Zerbe.

Presently, PPC is also evaluating the development of three additional warehouses inside the port of Balboa to reduce time and cost. Ultimately, it will offer the client more options and added value within their logistics chain in a transshipment center where the cargo has already passed without receiving added advantages and benefits.

“We plan to expand both terminals to handle the increased container volumes we have forecast in the coming years. Therefore, in terms of infrastructure, the size of the ships will

consistently grow, and the facilities to service them will need to as well,” he observes.

In addition to the expansion, PPC has been developing other noncontainerized projects, such as new cruise facilities in its Atlantic terminal and more Ro-Ro transshipment regional business. The company has also modernized one of its warehouses inside the Balboa port and is using this as a pilot project to develop significant warehouses and distribution and logistics facilities.

SUPPLY CHAIN CHALLENGES

In recent years, global supply chains have not been without their challenges; the COVID-19 pandemic, political unrest in various parts of the world, including the RussoUkraine war, the climate change crisis, and geopolitics, have all caused disruptions in maritime transport and logistics, including port congestions with cargo shipments forcing some ports to close.

“Significant delays in the cargo supply chains have led to many routes being reconfigured and reinvented, which has elevated shipping costs as well as the goods that are transported,” Zerbe outlines.

However, as supply chain disruption is lessening, freight rates have begun to decrease, and the performance of ports has started to improve.

Panama offers high logistics and port competitiveness, one of the most important being its strategic geographical position, which allows the connection of cargo from different destinations and routes around the world, thus shortening distances and operating costs.

PPC hopes to be recognized as a good corporate citizen, and its sustainability commitments will reinforce the company’s vision, to be the preferred partner for a sustainable supply chain.

“It is our duty as the world’s leading

“WE PLAN TO BE RECOGNIZED AS A GOOD CORPORATE CITIZEN AND THE PREFERRED PARTNER FOR A SUSTAINABLE SUPPLY CHAIN”
– JARED ZERBE, CEO, HUTCHISON PORTS PPC
HUTCHISON PORTS PPC NORTH AMERICA

port network and Panama’s leading port operator to identify the activities in our supply chain that exacerbate climate change and to address them accordingly,” adds Zerbe.

Subsequently, PPC’s global ideas in sustainability will benefit its partners, who choose to adopt its experience and expertise accumulated from its different ports worldwide.

GREEN CREDENTIALS

Additionally, Hutchison Ports integrates environmental social, and governance (ESG) criteria into

the business as well as for the investment decisions for the lasting benefit of both clients and society at large by continually working to achieve positive social change and improve its environmental footprint. These changes will positively impact the environment and the communities where the company resides, and by investing in clean technology, access to better finance means a more competitive port operator.

“One of our biggest focuses is to reduce our environmental impact

and footprint. Our performance and impact as an organization will be closely related for the next 25 years to the society in which we live and operate,” Zerbe acknowledges.

Moreover, the company understands that using diesel power to keep refrigerated containers cool generates harmful emissions. Therefore, electric solutions and technology are the paths forward, even if they are more costly. Fortunately, emissions reduction is something that PPC is willing to invest in.

Supply Chain Outlook Issue 1 | 253

“ESG is a driving force for us from a business perspective. As products move along the supply chain, each link adds value and, at the time time, contributes to climate change and environmental degradation, generating global greenhouse gas (GHG) emissions,” he details.

PPC has undertaken activities to conserve nature as part of the global environmental initiative Go Green. The campaigns promoting awareness and protection include tree planting, beach trash clean-up, waste recycling, and biodiversity conservation projects, enabling the company to continue generating initiatives and commitments supporting sustainable development. In turn, this will contribute to decarbonization for operations and the industry.

“Investing in communities is part of our business model because we believe that their long-term

“WE HAVE MODERNIZED ONE OF OUR WAREHOUSES INSIDE THE BALBOA PORT, AND WE ARE USING THIS AS A PILOT PROJECT TO DEVELOP SIGNIFICANT WAREHOUSES, AND DISTRIBUTION, AND LOGISTICS FACILITIES”
– JARED ZERBE, CEO, HUTCHISON PORTS PPC

economic, environmental, and social position is critical to our operations. Our goal is to become the preferred partner at every port.”

For the past two years, PPC has started supporting local children’s luncheons close to each terminal – El Bambu in Cristobal and Santa Cruz near Balboa.

“We have also developed a series of activities and educational visits to the ports with our employees’ children, local schools, and universities as part of our Go Green and Dock School

program. This will enable them to learn about the maritime industry as well as the environmental efforts carried out by us,” states Zerbe.

PPC’S PRIORITIES

Constantly evaluating and reviewing options gives PPC a competitive edge while continuously looking for opportunities to improve the level of service by using new technologies combined with the efficient management of the organization’s operations.

With the concession renewed for both terminals in 2022, PPC will operate and manage the Port of Balboa and the Port of Cristobal until 2047.

NORTH AMERICA
HUTCHISON PORTS PPC

SUPPLY CHAIN OUTLOOK: HOW DOES PPC EMPOWER ITS STAFF AND RECOGNIZE THEIR CONTRIBUTIONS?

Jared Zerbe, CEO: “We understand the importance of developing the leaders of tomorrow from within. Therefore, we commit time and investment to train and develop initiatives at both ports. PPC is built on a foundation of constant innovation, and our working culture reflects this by embracing new ideas from across the business at all levels.

“At PPC, we recognize that our staff are our most valuable asset. We are committed to providing a safe, healthy, and inclusive workplace where everyone is treated with respect and dignity. We believe in promoting diversity, equality, and fairness across our operations.

“Our staff are united by the ambition to strengthen our network, sharing knowledge, skills, and innovations freely across borders, oceans, and continents so that wherever we operate globally, we do so to the best standard.

“As employers, we acknowledge the importance of our staff’s continuous welfare and the care of the community and environment where we live and operate.”

“Through ongoing investment and countless explorations, we will continue to develop leading solutions that contribute to greater efficiency across every aspect of our operations. We will continue to innovate and use state of the art technologies and equipment to upgrade our ports to stay ahead,” enthuses Zerbe.

Guidelines for the coming years will see PPC optimizing its clients’ experience, increasing volumes, and operating as an environmentally clean port by changing diesel to electrification reefers in both terminals and taking steps to provide onshore power.

“We foresee important investments to go green as not only a requirement of our headquarters but the whole maritime industry and its financiers.”

PPC’s participation in Panama’s future and economic growth means it takes environmental initiatives seriously, setting group and local targets to reach permanent net zero.

“As part of that endeavor, in the short to medium term, our target is to reduce carbon emissions by 30 percent in diesel consumption per TEU by 2030 and 20 percent in carbon intensity by 2030. This is vital in pursuing a more sustainable business model,” Zerbe concludes.

With the concession renewed for both terminals in 2022, PPC will operate and manage the Port of Balboa and the Port of Cristobal until 2047. This assurance allows the company to invest with confidence and continue to ensure the safety of its operations and the efficiency of its ports, offering first-class services to customers and partners alike.

Tel: 507 207-5100

comunicacion@ppc.com.pa www.ppc.com

Supply Chain Outlook Issue 1 | 255 HUTCHISON PORTS PPC NORTH AMERICA

REALIZING WORLDWIDE EMINENCE

Recent years have brought a lot of excitement back to the hospitality and travel industries. After a turbulent period of distress across the sectors and thousands of hotels either going out of business or

being shuttered completely because of the global COVID-19 pandemic, the industry is back with a vengeance.

As seen in the last 12 months, business people and leisure enthusiasts are traveling again and

doing so in record amounts. This dramatic and welcome upturn in prosperity has created the opportunity for hoteliers to move ahead with expansions or muchneeded renovations to their spaces.

256 | Supply Chain Outlook Issue 1

Today, BCI Worldwide is respected as the global leader in hospitality logistics and offers complete management solutions to meet all its customers’ needs across the entire logistics spectrum of the sector. We discuss all this and more with President, Jeffrey Bulinski

During the COVID-19 pandemic, many hotel brands allowed for a pause on the property improvement plans required by all their franchisees to keep up with brand standards. This adjourn has since been lifted, and

hotel owners are now required to bring their properties back into compliance, meaning the hospitality logistics sector is once again feeling optimistic and anticipating a busy outlook.

Additionally, the introduction and

mainstreaming of the home rental market has caused the industry to adapt as well.

“What I find so amazing about the hospitality industry specifically is the resilience and adaptability to changes

WORLDWIDE Supply Chain Outlook Issue 1 | 257 BCI WORLDWIDE NORTH AMERICA

that come its way,” introduces Jeffrey Bulinski, President of BCI Worldwide.

“Some brands have home rental options as a part of their portfolio, but nearly all have come up with creative ways to attract the traveling public. Some have also made public spaces a collaborative environment for gathering, while others have tried to make the travel experience more like that of a home away from home,” he explains.

Back in the early 1980s, Bekins Distribution Systems (BDS) was founded in Las Vegas, as one of the first companies to focus primarily on hospitality logistics. As the Las Vegas strip continued to grow, so did BDS.

to final installation, BCI Worldwide has a team of experts that can handle any shipping request and the entire lifecycle of any hotel or commercial pre-opening or renovation project.

“We were founded 40 years ago with an emphasis on serving the hospitality industry. Through the years, our primary services have included transportation, warehousing, installation, and overall project management,” Bulinski tells us.

“In addition to these core services, we have also assisted with the removal, liquidation, disposal, and recycling of retired assets, as well as asset inventories and management, consulting services related to the

By 1999, operations had expanded throughout North America, and BDS was rebranded as Bekins Commercial Installations (BCI) Worldwide. Finally, in 2010, the company opened its first Asian branch in Macau to complete the Sands Cotai Central, the largest one-time hospitality construction project ever completed in Asia.

BECOMING A GLOBAL LEADER

BCI Worldwide is the global leader in hospitality logistics and offers a wide range of value-added services for its customers in the hospitality, gaming, shipping, and construction industries. From freight forward management

logistics industry, being an overall vital resource to our clients, prospects, supply chain partners, and the industry in general,” he adds.

In this way, BCI Worldwide provides assistance and guidance relative to best practices and ensures projects are successful.

In a crowded market of companies that perform services for the hospitality industry, where most rely on the use of third-party warehouse providers to help with their local storage and moving needs, BCI Worldwide employs a slightly alternative approach.

While the company conducts these services, BCI Worldwide also has a

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sister company called BMS Moving and Storage that owns and operates 17 state-of-the-art warehouses nationwide that it can call upon to expand its network even further.

At present, BCI Worldwide owns offices in Asia (Macau, Hong Kong, and Singapore) with expansion plans to open an office in a market with the ultimate goal of helping provide clients with a dependable, steadfast solution, while still maintaining the company’s reliable standards of excellence.

A BURGEONING PORTFOLIO

BCI Worldwide is currently immersed in numerous projects in support of the gaming and hospitality industries, not just in the Las Vegas area, but worldwide, including its physical locations like Macau and Singapore.

Elsewhere, Seminole Gaming has provided BCI Worldwide with multiple high-profile projects.

“One of these previous higher profile projects includes the Hard Rock Guitar Hotel in Hollywood, Florida,” Bulinski expands.

Additionally, BCI Worldwide recently completed the installations of the new, high-profile, world-renowned Fontainebleau Resort in Las Vegas, Nevada, as well as the beautiful Sunseeker Resort in Charlotte Harbor, Florida.

“OUR NETWORK OF 17+ SISTER LOCATIONS, ALONG WITH THE VAST EXPERIENCE AND EXPERTISE OF OUR STAFF AND DIVERSE PARTNERSHIPS, WILL GIVE US THE ABILITY TO TRAVERSE THE GROWING NEEDS OF MOST COMMERCIAL CLIENTS”
– JEFFREY BULINSKI, PRESIDENT, BCI WORLDWIDE

“Internationally, we more than hold our own. We continue to do work at the Marina Bay Sands Hotel in Singapore; and the Parisian, Wynn Palace, and Sands Cotai projects in Macau,” he confirms.

Furthermore, BCI Worldwide is resolutely set on achieving its goal to enhance the hospitality industry and is currently working on several multi-tenant and healthcare projects. Ultimately, the company believes that every project is as important as the next, regardless of the name, size, or location.

As an example, while smaller than those mentioned above, BCI Worldwide also has several projects ranging in room sizes from 30 to 400 rooms that will act as new or refreshed ‘jewels’ in their local communities once completed.

“We have many new, exciting projects either currently starting or in the very near future. Some of

these include the L’Auberge Hotel in Lake Charles, Louisiana, as well as the Margaritaville project in Bossier City, several large thousands of room renovation projects in Las Vegas, and The Marina Bay Sands project in Singapore.”

PRIORITIZING PROGRESS

While 2023 was a fantastic year for BCI Worldwide, the company is still looking forward to increasing its performance internationally across the rest of 2024.

“The global COVID-19 pandemic continued to affect our overseas operations, with many jurisdictions only lifting restrictions late in 2023. However, the positive news is that the activity in North America continues to strengthen and grow, which should allow us to positively increase our performance,” Bulinski enthuses.

BCI Worldwide looks to expand its global footprint, increase its share of

BCI WORLDWIDE NORTH AMERICA

BCI WORLDWIDE MISSION AND VISION

MISSION

• BCI Worldwide’s mission is to continue to build on its team’s experience, success, and proprietary technology to ensure the company maintains its reputation as the leader in the hospitality and gaming logistics industry, furniture installation companies, and international logistics services.

VISION

• The company has a vision to expand its portfolio of services to ensure it can become a one-stop solution for the many supply chain requests

BCI Worldwide receives from its diverse customer base.

BCI Worldwide wants to look at its customers’ needs as opportunities to further expand its offerings while also maximizing efficiency and profitability.

freight volume, and grow its supply chain network even further.

“Our focus for many years has been on providing services for the gaming industry, which has typically meant large, upscale projects. While we will continue to perform services for this important market segment, we will also be expanding to the travel, leisure, and entertainment markets,” he elaborates.

Similarly, BCI Worldwide has already been awarded and involved in projects in several outdoor, exercise-focused travel destinations. Furthermore, the company is working with numerous other businesses for a diverse blend of projects in locations that vary from metropolitan to beachfront.

Elsewhere, BCI Worldwide is always looking at additional markets, such as its future expansion into the United Arab Emirates (UAE), as well as a warehouse expansion with its sister company, BMS Moving and Storage, to better serve its customers.

By constantly investing in enhancements to its proprietary software, BCI Worldwide can now handle any scope of work that its clients bring to the table.

“As we continue to grow our brand, as well as our national and global capabilities, we will look to expand into other markets outside of the hospitality industry. Our network of 17+ sister locations, along with the vast experience and expertise of our staff and diverse partnerships, will give us the ability to traverse the growing needs of most commercial clients,” Bulinski finishes proudly.

Tel: (303)882-6977

sales@bciworldwide.com

www.bciworldwide.com

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BCI Worldwide projects All Seasons Commercial Installation

INNOVATION INAVIATION

As a global leader in aviation, MHI RJ Aviation Group’s world-class services are the building blocks of airline fleets worldwide. We find out more about the company’s driving principles and newest innovations with Vice President, Ross Mitchell

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Reliability is the backbone of all aviation industry standards. Passengers, airlines, manufacturers, and maintenance providers benefit from great teamwork and collaboration, leading to consistent and reliable aircraft service.

This kind of relentless excellence doesn’t go unnoticed, and MHI RJ

Aviation Group (MHIRJ) provides comprehensive and critical operational, engineering, and customer support solutions, including maintenance, refurbishment, technical publications, marketing, and sales activities for the global regional aircraft industry.

MHIRJ is a group of companies wholly owned by Mitsubishi Heavy Industries, Ltd. Headquartered in Montréal, Quebec, and bolstered by an Aerospace Engineering Center, MHIRJ’s network of service centers, support offices, and parts depots are positioned in important aviation hubs in the US and Canada.

Supply Chain Outlook Issue 1 | 263 MHI RJ AVIATION GROUP NORTH AMERICA

MHIRJ is the merging of two crucial heritages – Mitsubishi Heavy Industry, Ltd. and the CRJ Series program, which revolutionized regional aviation with the launch of the 50-seat Canadair Regional Jet and was later expanded with the launch of the 70-seat CRJ700 in 1997, the 86-seat CRJ900 in 2000, and the 100-seat CRJ1000 in 2007.

A PLATFORM FOR GROWTH

The CRJ Series has been the world’s most successful regional aircraft family for the last three decades, having made its first flight in 1991.

The jets are known to be reliable, and the strong foundation of the world’s air fleets, connecting people and communities.

On June 1st 2020, MHI acquired the CRJ Series program, marking the opening chapter of MHIRJ’s story. Built on the solid foundations already in place and with the strong support of the MHI group of companies, MHIRJ remains committed to serving the regional aviation market and becoming a platform for growth in the industry.

“The origins of MHI can be traced all the way back to 1884. In that year, Yataro Iwasaki, Founder of Mitsubishi, took a lease out on the governmentowned Nagasaki Shipyard. He named it Nagasaki Shipyard & Machinery Works and started the shipbuilding business on a full scale,” explains Ross Mitchell, Vice President of MHIRJ.

“This shipbuilding business was later turned into Mitsubishi Shipbuilding Co., Ltd., and then launched as Mitsubishi Heavy Industries, Ltd. in 1934, establishing its position as the largest private firm in Japan, manufacturing ships, heavy machinery, airplanes, and railroad cars,” he recalls.

Integrating each company’s management and technical expertise and enhancing competitiveness in domestic and international markets, the group has come a long way.

Today, MHIRJ is the type certificate holder for the CRJ Series, meaning that it is responsible for supporting the fleet and can continue the development of the aircraft.

“We provide maintenance and engineering services that keep the fleet flying. If you fly on a CRJ Series aircraft, it is being supported by our team and has more than likely been in one of our maintenance centers.”

“WHEN WE FOCUS AND TARGET A MARKET WE WANT TO GO AFTER USING THE INFRASTRUCTURE WE HAVE, WE CAN DO A GOOD JOB AND QUICKLY GAIN MARKET SHARE”
– ROSS MITCHELL, VICE PRESIDENT, MHI RJ AVIATION GROUP

Given that the company is no longer manufacturing new aircraft, its focus concerning sustainable aviation is to ensure that the aircraft MHIRJ built continue to fly, thus removing the immediate need to replace them.

“We also work with our customers to ensure any changes that might reduce the fuel burn of the aircraft are considered and, if valuable, implemented. Over the life of the program, we have significantly reduced the fuel burn by making changes to the aircraft systems,” Mitchell divulges.

EVOLVING THE WORKFORCE

The US aviation industry is currently experiencing a period of rapid regrowth following the treacherous fallout of the COVID-19 pandemic.

Meanwhile, the biggest issue in aviation today is the workforce, which widely concerns recruiting pilots, technicians, or other service providers.

“The challenge will be for the industry to explain to younger generations why this is an exciting and dynamic sector to be a part of and why they should consider getting the necessary training,” Mitchell exudes.

Expanding the workforce will require hard work not only from industry but from government and educational institutions as well.

For example, the state of West Virginia recently provided $25 million to build Pierpont College’s new aviation maintenance training facility. Such ambitious and exciting partnerships will allow education institutions to train highly qualified technicians in the sector.

“I began my aviation career about 25 years ago, joining a manufacturer in the contracts department having previously practiced law, and since then, most of my time in aviation has been spent in sales and marketing. I joined MHIRJ almost four years ago and am responsible for strategy, business development, communications, and marketing,” he recollects.

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Elsewhere, another challenge that must be tackled is the need for continued support of education and training in the aviation industry. In line with the needs of its sector, MHIRJ recently began offering scholarships to students at an aviation school in Tucson, Arizona (AZ), where one of its service centers is located.

“We’re extremely thankful for the scholarship opportunities that MHIRJ is creating for our students,” said Jason R. Bowersock, Director of Aviation at Pima Community College (PCC).

“For many of our full-time students, pursuing their mechanic’s certificate while working is difficult. Contributions from our generous industry partners help ensure our students’ academic success.”

MHIRJ FAST FACTS

• MHIRJ has one of the largest installed regional aircraft fleets in the world, with more than 1,000 planes flying with more than 125 operators.

• The company has been commended for 15 consecutive years by the Federal Aviation Administration (FAA) for outstanding customer support.

• MHIRJ currently holds a world-class safety record and possesses the most extensive regional aircraft maintenance network worldwide.

• The company serves customers worldwide, counting 25 support locations ranging from training centers to regional support offices, including the customer response center headquartered in Montréal, offering 24/7 customer support.

There is a shortage of talented individuals across all jobs within the sector, and this not only impacts companies like MHIRJ, but whole communities. When there is a shortage of talent, it is the smaller communities that subsequently lose service.

“Governments must work with the aviation industry to ensure that there is a strategy around workforce development to ensure that vulnerable communities are not negatively impacted by the current talent shortage,” states Mitchell.

As workforce recruitment and retention are vital, MHIRJ is currently running a campaign to increase its team to accommodate all the business that it is taking on. The

campaign, with the theme “Live your best life”, shows actual employees of MHIRJ to inspire and motivate aviation technicians to join MHIRJ service centers in Tucson, AZ, and Bridgeport, West Virginia (WV).

COMPONENT REPAIR AND OVERHAUL

Driven by an unwavering commitment to world-class customer support, MHIRJ offers a full range of maintenance services around the globe.

One of the greatest success stories for the business in recent years is the development and impressive evolution of its component repair and overhaul (CR&O) capabilities.

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MHIRJ’S MISSION, VISION, AND VALUES

MISSION

• Enable, grow, and sustain powerful connections between customers, people, and communities to deliver the resources and insights they need to take flight.

VISION

• Deliver maximum value to all partners by connecting communities with a commitment to excellence and efficiency, helping move the world forward.

VALUES

• MHIRJ builds enduring partnerships with its customers, people, global network, and communities to enable powerful collaboration and make a sustainable impact.

• The company’s principles drive MHIRJ to operate with a relentless commitment to purpose, integrity, fairness, respect, and excellence.

• MHIRJ celebrates courage, creativity, and different perspectives to enable ingenuity and innovation, as the company challenges the status quo with big, bold ideas that deliver value to its partners and advance the industry.

• Remaining flexible and accountable, MHIRJ balances nimbleness with a dedication to delivering strong results to all its partners and global network.

“In just two years, we have more than tripled the revenue of that section of the business. That’s a massive expansion, and it shows that when we focus and target a market we want to go after using the infrastructure we have, we can do a good job and quickly gain market share,” Mitchell excites.

“We are now actively looking for ways to expand that business to other CRJ Series systems, and perhaps beyond.”

MHIRJ relies on over 50 years of

experience in complex composite and metallic aerostructures to do what is right for its customers. Today, the company offers a broad portfolio of services on engine nacelles, thrust reversers, flight controls, electrical wiring, inlets, exhausts, and door repairs for its supported aircraft types.

Furthermore, MHIRJ’s highly skilled technicians restore its clients’ components to a serviceable standard by providing component inspection, repair and refurbishment, component service bulletin incorporation,

non-destructive testing (NDT), warranty services, and full-paint refurbishment offerings.

“Most other companies in the field of maintenance, repair, and overhaul (MRO) or spares distribution do not have the experience level that we have with the fleet of aircraft we service. Our teams designed the aircraft, produced them, and continue to support them in service,” he expresses.

“No other MROs have the depth of experience and the team that we have available for CRJ Series customers.”

As a service company, employees are the key to the success of the business, responsible for MHIRJ’s customer interactions and ensuring its clients remain loyal.

In this way, the company is constantly working on initiatives with its employees to ensure satisfaction is high and that they remain with the business. Attracting new employees, especially now, is difficult and expensive; therefore, the best strategy is to retain valued team members.

This year, MHIRJ is focused on growing its employee population as it continues to experience a surge of business, which brings the need to ensure that the company has the people available and ready to meet demand.

“We will continue to grow and diversify our business, but first, we need to focus on ensuring that we can attract people to MHIRJ before moving too quickly onto our exciting future plans,” Mitchell concludes optimistically.

Tel: (+1) 450-497-0555

communications@mhirj.com

www.mhirj.com

268 | Supply Chain Outlook Issue 1 MHI RJ AVIATION GROUP NORTH AMERICA

The last century has seen the aviation industry grow exponentially. Danny Sitnam, President and CEO of Helijet International, explains how investing in new technologies amidst a climate of modernization has kept the company at the top of its game

ENABLING EVOLUTION

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Year on year, North America’s aviation industry sees constant change to its regulations, economies, and environments, whilst the travel habits of the public cannot be predicted.

Nevertheless, Helijet International (Helijet) revels in the challenges and opportunities that an active

and exciting sector presents, and anticipates positive change as new developments emerge.

““In a nutshell, aviation is an exciting yet challenging sector. As aviators, we enjoy change and get very complacent being stagnant,” opens Danny Sitnam, President and CEO of Helijet.

As a solutions company for air transportation based in British Columbia (BC), Helijet is well known as North America’s largest and longest standing scheduled helicopter air service. Operating across the Pacific Northwest of the US, it offers a wide range of scheduled, scenic, and corporate charter flights.

Supply Chain Outlook Issue 1 | 271 HELIJET INTERNATIONAL NORTH AMERICA

Lesser known is the company’s engagement in air medical operations. Having operated its Sikorsky S-76 helicopter as a dedicated medical vehicle for over 25 years, Helijet offers considerable high acuity aid.

“We are BC’s largest dedicated air medical service provider,” Sitnam reveals.

As a result of its work with the British Columbia Air Ambulance Service (BCAS), Helijet has subsequently been tasked with overseeing 52 air ambulance heliports and landing zones across the nation. Therefore, the management and operation of heliports has evolved as a sizable subdivision of the company.

“By default, we’ve become an infrastructure organization. We consult international companies in developing heliports and vertiports, which is now a big part of our business,” he comments.

With a wide and varied range of products and services at its fingertips, a reputation for excellence, and having played a key role in the development of BC’s aviation industry over the past three decades, the Helijet name garners respect and recognition from across the globe.

ADVANCED AIR MOBILITY

In recent years, the evolution of advanced air mobility (AAM) has taken the aviation and aerospace industries by storm.

By creating innovative, quieter, and more cost-effective automated aircraft, with a significantly lower carbon footprint due to being powered by electricity or hydrogen, AAM poses major improvements to aviation as we know it.

“It’s exciting to see the direction AAM is moving in, as it will change the dynamics of how the industry will operate in the future,” Sitnam enthuses.

In 2019, Helijet became a founding member of Canadian Advanced Air Mobility (CAAM), and last year announced its plans to become the first Canadian air carrier to provide services using electric vertical takeoff and landing (eVTOL) aircraft – an adopter of AAM.

“Back in October, we made the significant announcement to provide passenger and cargo services using eVTOLs. We put firm orders in with BETA Technologies (BETA) for its ALIA 250 eVTOL model, which is estimated to be commercially certified in 2027.”

Notably, eVTOL poses significant enhancements to Helijet’s emergency response capabilities, especially when serving remote areas.

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As a leader in electric aerospace engineering and AAM, BETA emerges as a beneficial partner for Helijet.

“We’re excited to work with BETA, and it was important for us to put in a firm order with them, so regulators like Transport Canada can see how serious we are about AAM. We can’t do it by ourselves – we need a whole community of stakeholders to bring this to life,” Sitnam emphasizes.

Helijet’s decision to partner with BETA is also due, in part, to the latter’s intention to certify the ALIA eVTOL for instrument flight rules (IFR) operations.

“BETA was the only company we could identify that was serious about certifying AAM vehicles for IFR when we did the assessments on original equipment manufacturers (OEMs),” he explains.

Committed to introducing zeroemission vertical lift technologies

“I’M A BIG BELIEVER THAT PARTNERSHIPS ARE IMPORTANT, ESPECIALLY IN THIS EXPANDED AAM ENVIRONMENT WE’RE STEPPING INTO”
– DANNY SITNAM, PRESIDENT AND CEO, HELIJET INTERNATIONAL

to the communities it serves, Helijet looks forward to utilizing AAM to transform the aviation landscape in BC in coming years.

STEWARDS OF SOCIETY

As an environmentally conscious province, BC is committed to reducing its greenhouse gas (GHG) emissions to 80 percent below 2007 levels by 2050. Helijet plays its part in achieving this goal by actioning a range of sustainable practices.

“As a company, a lot of our carbon footprint is offset. We manage this

monthly, by reporting to and paying into the recognized Coastal First Nations carbon offset program,” Sitnam details.

Further to this, Helijet is in the process of converting its ground shuttle vans to electric vehicles (EVs) and installing electric charging stations within all its heliports.

“This means all our customers and employees can use EVs to travel to and from our facilities. We’re transitioning by funding around CAD$1.5 million into these,” he comments.

Supply Chain Outlook Issue 1 | 273 HELIJET INTERNATIONAL NORTH AMERICA

Helijet is also designing future plans to implement new infrastructure at its Vancouver International Airport for all its air operations, using sustainable, organic building materials.

In addition to Helijet’s focus on sustainability for the betterment of society, Sitnam himself has recently embarked on a charitable mission in co-founding Helicopters Without Borders.

“Helicopters Without Borders is a non-profit, Canadian and US registered charitable organization. My son and I started it because we want to use technology and aviation, especially new sustainable technologies, to help communities and people who don’t have access to aviation,” he divulges.

Helicopters Without Borders delivers goods and services to rural and Indigenous communities across BC, some of which are located up to 10 miles away from a town or city.

“We deliver to these communities via helicopter or plane at no cost to the end user, because we fundraise all the capital required to operate the aircraft and make that delivery air service,” he continues.

Having grown in recognition over recent months, the program has expanded to include the delivery of mobile dental clinics, dentists, and other clinicians to the most remote and rudimentary areas within the BC province.

“A lot of it is about respecting the community and its elders, who may be apprehensive to come into the city; we therefore bring that caring relationship to the community’s peoples so they’re a little more comfortable.”

Due to the opportunity to one day utilize new, sustainable aircraft, Helicopters Without Borders will be able to deliver goods and services in an environmentally-friendly way.

“Helicopters Without Borders is a strong and well-respected initiative,” Sitnam states confidently.

SUPPLY CHAIN OUTLOOK: HOW DID YOU FIRST BECOME INTERESTED IN THE AVIATION INDUSTRY?

Danny Sitnam, President and CEO: “I never intended to get into aviation; I was destined to become a machinist, as I enjoy working with my hands.

“I began training as a machine engineer, and I enjoyed building things, but it took a left turn when someone took me out for a helicopter ride. At the early age of 17 years old, I became enamored with being in the air and was very interested in the technology of helicopters. So, I pursued my helicopter and pilot license, and immediately began flying.

“For many years, I operated in the Canadian High Arctic in some very rural and remote areas. I built an interest in establishing a commercial venture and bumped into a couple of partners.

“Fast-forward to 1986, we started planning a commuter service between downtown Vancouver and Victoria, which is separated by a body of water. In BC, the capital city is on Vancouver Island. We started a service between the two city centers, using a helicopter primarily to cater for the business travelers, who value the importance of time and convenience. That’s how we launched Helijet.”

274 | Supply Chain Outlook Issue 1 HELIJET INTERNATIONAL NORTH AMERICA
At the Port of Nanaimo, we are thrilled to highlight our flourishing partnership with Helijet, a testament to innovative collaboration in transportation. We proudly recognize the extraordinary leadership of Danny Sitnam, whose vision and dedication have propelled Helijet to remarkable heights.
about connecting communities, fostering economic growth, and paving the way for sustainable and efficient transportation solutions. We are
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Port of Nanaimo and Helijet: Sailing and Soaring Together Towards a Brighter Future.
honoured
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and Helijet,
we embark
new horizons, fuelled by
and
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PARTNERSHIPS AND FUTUREPROOFING

To Helijet, healthy cross-company relationships and partnerships are invaluable given the fast-paced and changeable nature of the aviation industry.

“I’m a big believer that partnerships are important, especially in this expanded AAM environment we’re stepping into,” Sitnam reveals. Notably, Helijet’s relationship with BETA is its most recent and significant.

“The relationship with BETA is important because we needed a company that not only builds aircraft, but has also developed charging infrastructure. We can’t fly these aircraft without a charging station,” he explains.

The company hopes that, in the future, BETA’s advanced charging infrastructure can be implemented within its existing heliports and future vertiports.

Another long-standing partnership that is important to Helijet is the company’s relationship with Blade Urban Mobility (Blade), a New Yorkbased, technology-powered global air mobility platform.

STANDING OUT FROM THE CROWD

As a trusted supplier to the domestic, corporate, and commercial aviation industry, Helijet naturally maintains very high standards for its service and operations.

The company’s reputation for exceptional service, which frequently exceeds customer expectations, has become an integral part of the Helijet brand.

Helijet’s reputation, based on repeated historical success, awards

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“AT HELIJET, WE’RE KNOWN FOR OUR EXCEPTIONAL SERVICE. EXCEEDING CUSTOMERS’ EXPECTATIONS IS OUR GOAL ACROSS ALL LEVELS OF THE COMPANY”
– DANNY SITNAM, PRESIDENT AND CEO, HELIJET INTERNATIONAL

Having established an operating partnership with Blade in 2021, including exclusive rights of sale of seats, Helijet hopes to position itself and Blade as leaders in the industry, especially as the dawn of AAM and eVTOL grows ever closer.

“Blade’s priorities align with ours insofar as wanting to bring the AAM community forward and introduce sustainable technologies to the aviation industry. We’ve joined forces to become corporate partners in developing our markets together.”

As 2024 unfolds, Helijet wishes to continue to engage with innovative

and forward-thinking partners such as BETA and Blade.

“We want to work with new and emerging AAM players,” Sitnam states.

In a post-COVID-19 climate, the company strives to maintain and nurture its existing partnerships, ensure that travelers continue to choose Helijet, and reinforce its strong position within the market.

“We’re focused on rebuilding our market position, as the pandemic took a big swipe at that. For 2024, it’s a question of economic sustainability,” he concludes.

Phone: +1.604.273.4688 Reservations: +1.800.665.4354 helijet.com
Supply Chain Outlook Issue 1 | 277

SPEARHEADIN G LOGISTICAL SYNERGY

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Founded in 1882, J.D. Irving, Limited has progressed to become a leading logistics provider across North America. Group Vice President, Andrew Fisher, tells us the story of the company’s enduring mission and supply chain expertise

J. D. Irving, Limited’s (JDI) Transportation and Logistics Division contains one of the widest arrays of logistical service providers in the global market today.

The division includes 11 unique enterprises that have been active for many years, with some having been in business for over seven decades, as well as service providers, trucking operations, marine, short-line railways, and a school.

Across the entire Transportation and Logistics Division, the mission is simple: to always deliver, whether

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by road, rail, or sea, to ensure its customers’ supply chains are consistently moving.

“We are challenging our industry, changing how we operate, and driving digital transformation in all our businesses,” states Fisher.

This is thanks to the committed work of the division’s 1,700 employees operating across Canada, the US, the Caribbean, and Europe.

In the context of JDI, the Transportation and Logistics Division provides unparalleled logistics capabilities and the broadest array of services all under one roof, optimizing how goods flow to market.

Implementing sustainable operating practices and innovative approaches to material movement

“WE BELIEVE IN INVESTING AND BUILDING OUR BUSINESS WITH THE SKILLS OF GREAT EMPLOYEES, PRODUCING EXCELLENT PRODUCTS, AND PROVIDING SUPERIOR SERVICE TO OUR VALUED CUSTOMERS”
– ANDREW FISHER, GROUP VICE PRESIDENT, J.D. IRVING, LIMITED

allows the logistics arm of the organization to service customers in the most efficient manner and reduce its carbon footprint.

This makes the Transportation and Logistics Division one of the key providers for JDI, moving forest

products by road and rail between operations to the market.

SIGNIFICANCE OF THE SUPPLY CHAIN

Globally, the transportation and logistics sector has consistently been

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recognized as a vital piece of the supply chain.

Therefore, this specialized division of JDI keeps its supply chains intact, providing customers with competitive price points so that its internal businesses can remain sustainable.

“At JDI, we believe we have the potential to be better every day and know we can be a part of the solutions to some of today’s most pressing challenges,” Fisher highlights.

One difficulty that the company has overcome is the consequences of the COVID-19 pandemic, which had a major impact on the global supply of goods and services.

“Over the past few years, many people have seen first-hand what happens when the supply chain is

JDI’S KEY INVESTMENTS

As part of JDI’s logistical expertise, the Transportation and Logistics Division endeavors to maintain every project to the highest standards.

This was most recently reflected by upgrading NBM Railways’ lines to continuous welded rail (CWR).

“These upgrades modernize the lines to be longer and uninterrupted, leading to smoother rides, less maintenance for locomotives and cars, faster service, and increased safety,” informs Fisher.

In tandem with this, NBM Railways has partnered with Progress Rail to modernize its locomotive fleet. The project will see 16 locomotives and five boosters upgraded, which, when combined, provide the power of two locomotives with the fuel usage and emissions of one.

The boosters are also equipped with control cabs, allowing the operation of both components with no additional training required.

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COMMUNITY OBLIGATIONS ON THE DATACO RADAR

Since JDI’s establishment as a small family business in 1882, its shared values and work ethic have matured into a commitment to all its key stakeholders. These core values permeate the company’s operations, employees, management teams, and systems to guide its actions and behaviors.

Eight values form the foundation of JDI, known as The Irving Way.

These include:

• Health, safety, and environment

• Customer focus

• Integrity

• People and teamwork

• Quality products and services

• Continuous improvement and innovation

• Results-driven

• Fast and flexible

These core values also guide JDI’s approach to sustainability, as managing its operations in an eco-friendly way is not a new concept but has been a hallmark of the business since it began planting trees in the mid-1950s.

“We continue to evolve, staying ahead of the curve and making investments to benefit our operations, the environment, and the communities where we live and work,” Fisher shares.

interrupted; the COVID-19 pandemic demonstrated the significance of a strong supply chain. For many in Canada particularly, a new appreciation was found for the supply chain and what it involves,” he recalls.

This is particularly apparent given that the industry is responsible for moving goods across the country and the world; as such, interruptions and changes can have a major impact.

Moreover, Fisher has witnessed a new appreciation for the industry, alongside a greater public understanding of how global events can have local impacts.

IMPROVING ENVIRONMENTAL EFFICIENCY

The Transportation and Logistics Division of JDI is also taking significant steps to improve efficiency by reducing the environmental footprint of its largest assets.

In the fall of 2022, the Atlantic

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Shrike, an offshore supply vessel, successfully completed a series of sea trials off the coast of Newfoundland, powered solely by an energy storage system (ESS).

The Atlantic Shrike demonstrated an ability to not only transit with zero emissions, but also operate as a hybrid vessel while undertaking dynamic positioning.

“The highlight of the trial was the ESS taking over the full load of the ship, including propulsion, for approximately 30 minutes and sailing at seven knots, making the Atlantic Shrike capable of zero-emission transit for short periods of time,” Fisher expresses.

The division’s improvements have reduced the ship’s emissions by up to 800 tons (t) of CO2 per year. Meanwhile, the vessel’s existing dynamic positioning and automation systems, as well as ventilation and freshwater cooling, were modified to

accommodate the large-scale ESS, a containerized module measuring over 37 feet in length and weighing over 40 t.

Moreover, extensive research was completed to ensure optimization in terms of operation and safety, including a robust firefighting system of water mist protection and inert gas deployment.

This project represents a businesswide effort to make a change to the industry.

“More than ever, our stakeholders, customers, employees, and communities demand environmental accountability and responsibility.

“In the Transportation and Logistics Division, we are working to create a culture of sustainability around our climate, people, and innovation. By optimizing our fuel costs and expenditure, we can both reduce our carbon footprint and invest more in our people,” Fisher details.

The company and its team

are proud members of JDI, an organization that has planted one billion trees to date.

“Together, we strive to make a positive difference in our communities, prioritizing social, corporate, and environmental sustainability,” he concludes.

Tel: 1-506-632-7777

info@jdirving.com

jdirving.com

Serving your fleet is our business Apply at IRVING24.com Supply Chain Outlook Issue 1 | 283 J.D. IRVING, LIMITED NORTH AMERICA

TRANSIT TRANSFORMING

David Reage, Executive Director of Halifax Transit, outlines how the municipality is investing to meet the demands of a net zero future and increasing ridership

Writer: Jack Salter | Project Manager: Scarlett Burke

284 | Supply Chain Outlook Issue 1

As one of the fastest growing municipalities in Canada, Halifax boasts a rich local history, a vibrant culinary scene, and exciting events.

Tasked with providing public bus, ferry, and paratransit services in this spectacular coastal setting is Halifax Transit, whose roots can be traced back almost two centuries to the city’s early streetcar operators and the oldest saltwater ferry service in North America, which has been running since 1752.

By 1981, Halifax’s three transit operators at the time had combined into one regional collective; today, the organization is coming full circle, according to Executive Director, David Reage.

“When you look back, we used to have a large, electrified fleet of streetcars and trolley buses. Now, electric buses are making a return, and we’re looking at some electric ferries as well,” he reveals.

Electric vehicle (EV) technology is a major shift for Halifax Transit, as it is embracing one of the biggest challenges in the history of its operations with significant investment.

“Electrifying the fleet is certainly a major investment, and we’ve been fortunate to receive significant funding to make that happen. Everything about electric buses is more expensive and more complicated, so we really couldn’t do it without that support from the senior orders of government,” Reage recognizes.

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Hydrogen fuel cell technology, meanwhile, is emerging as the next big development in EVs and something that Halifax Transit envisages being a big part of its future fleet; however, work is still ongoing to understand the right mix of buses.

Although recognizing the importance of technological advancements such as EVs and hydrogen amid the transition to a net zero future, Reage acknowledges that diesel buses still remain a relatively clean environmental option in the meantime compared to other modes of transport, such as cars.

“It’s important to remember that many diesel bus passengers would otherwise be driving their own cars. Diesel buses have been painted in a bit of a negative light, but they are relatively low emission.”

INCREASING RIDERSHIP

Public transportation ridership may have plummeted in Canada and around the world during the COVID19 pandemic, however, it also proved

the core value of transit systems for essential workers.

Halifax Transit was there to transport frontline workers and other passengers to their places of work, critical medical appointments, and grocery stores.

The pandemic proved how crucial public transportation services are in society, and once restrictions on movement were lifted, passengers returned to transit systems for their transportation needs.

“Suddenly, everybody came back at once, and on the flip side, we quickly became overloaded,” states Reage.

In the near term, Halifax Transit is making the requisite adjustments to deal with this surge in ridership, adding services to existing routes.

Longer term, the city of Halifax is growing to the point where merely adding buses to existing routes is insufficient for dealing with rapidly increasing demand.

As a result, it is exploring ways to accommodate greater passenger loads, such as additional ferry and bus

rapid transit (BRT) routes.

“We have a Rapid Transit Strategy (RTS) that is the blueprint for everything. RTS proposes three new ferry services and a network of BRT routes, which are high-capacity, highfrequency, and a step above what we offer today,” Reage outlines.

The three new proposed ferry routes will provide direct connections between downtown Halifax and new terminals at Mill Cove, Larry Uteck, and Shannon Park. These routes would provide reliable service with travel times faster than the same route by bus or car.

The proposed BRT lines, meanwhile, will be within walking distance of approximately 120,000 residents, helping to create complete communities by orienting land use towards transit and reducing the need to invest in road expansions.

In turn, complete communities contribute to improved public health through higher rates of walking, rolling, and cycling in conjunction with transit use.

TRANSIT NORTH AMERICA
HALIFAX

RTS therefore also sets a direction for land use policy, which is near and dear to Reage’s heart given he is a planner by profession with expertise in this area.

“As a municipality, it’s about working closely with our land use planning department to make sure that people moving here have the option to use transit rather than driving cars and causing congestion.”

UNPRECEDENTED INVESTMENT

Alongside RTS, Halifax Transit is also working to replace the Burnside Transit Center, which is the primary bus storage and maintenance facility for the transit system.

The center will be replaced with a larger net zero facility to support a faster and more reliable public transit experience.

When complete, the project will

provide increased capacity and better access to public transit in Halifax, including clean energy transportation.

“The new Burnside Transit Center will be almost double the capacity, setting us up for growth but also the greening of the fleet with chargers for electric buses and potentially fueling systems for hydrogen buses,” Reage details.

The total amount of proposed capital being put into these projects is approaching CAD$1 billion, which is by far the biggest investment that the municipality, along with the provincial and federal governments, has ever made into the Halifax transit system.

“It ties back to the environmental goals surrounding greenhouse gas (GHG) reduction, but also keeping up with our massive population growth,” states Reage, who having been in his current role for eight years has also

SUPPLY CHAIN OUTLOOK: HOW DO YOU MARKET YOUR SERVICES TO VISITORS LOOKING TO TRAVEL ON MORE SCENIC ROUTES?

David Reage, Executive Director: “Halifax is a really big tourist destination in the summer months. We have a direct service to Halifax Stanfield International Airport, so we work with our colleagues at the airport to make that option known to people as they arrive.

“The other big thing is our ferry service. We refer to it as the cheapest harbor cruise that can go from downtown Halifax to downtown Dartmouth, which is another area with lots of great shops and restaurants.

“Interestingly, we get a lot of cruise ships that come into Halifax, and despite the fact they have just been out at sea, the first thing people want to do is get on the ferry and travel across the harbor.

“It’s a short walk from the cruise ship terminal down to the ferries, and Halifax Harbor on a sunny day is just a beautiful place to be. Our ferries have open-top decks, so in the summer, they are packed with people. It’s a great way to see the city.”

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288 | Supply Chain Outlook Issue 1 HALIFAX TRANSIT NORTH AMERICA

On-Vehicle Devices

www.vontas.com

“ELECTRIFYING THE FLEET IS CERTAINLY A MAJOR INVESTMENT, AND WE’VE BEEN FORTUNATE TO RECEIVE SIGNIFICANT FUNDING TO MAKE THAT HAPPEN”
– DAVID REAGE, EXECUTIVE DIRECTOR, HALIFAX TRANSIT

witnessed the implementation of digital technologies that benefit locals and tourists.

For example, Halifax Transit has integrated real-time data to provide accurate bus timings, as well as automated stop announcements for those who have visual impairments or aren’t familiar with the area.

In November, the municipality also launched HFXGO, a fare payment app that allows passengers to purchase tickets and passes directly from their smartphone or mobile device, eliminating the need for paper tickets and fumbling for loose change.

“These are the kind of things that

remove barriers and make it easier to use transit,” he affirms.

DIVERSE WORKFORCE

As Halifax has grown and become more diverse, it is highly important to the municipality that its workforce is reflective of the community it serves.

“I’m proud of the diversity of our workforce, and we’re making a lot of headway in that area,” acclaims

Reage.

Halifax Transit equally ensures that its staff work in a safe environment and emphasizes the importance of their roles in allowing people to live their lives.

Indeed, people rely on the municipality to perform everyday tasks such as going to work, attending medical appointments, and visiting grocery stores.

“Teaching someone to drive a bus is the easy part; it’s about how you interact with people. In some cases, a bus operator will be the first person someone sees in the morning on their way to work or the last person they see at the end of the day,” Reage says.

With this positive mindset instilled throughout the entire workforce, Halifax Transit is poised for a transformational year.

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Modular, integrated solutions designed for public transit agencies. CAD/AVL
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Supply Chain Outlook Issue 1 | 289 HALIFAX TRANSIT NORTH AMERICA

DELIVERING CHAIN

Amidst a landscape economic change, electricity supply issues, and considerable unrest in South Africa, remained resilient. The Renier

Preez,

Du Writer: Lily Sawyer |
DIGISTICS AFRICA 290 | Supply Chain Outlook Issue 1

DELIVERING SUPPLY CHAIN SUCCESS

landscape of continuous electricity and water considerable social Africa, Digistics has The company’s CEO, Preez, tells us more

Following considerable turbulence caused by the recent COVID-19 pandemic, supply chain operations in South Africa have seen much disruption. As companies began to source supplies more locally, new relationships were forged amidst a changing economic landscape.

Digistics, a South African supply chain and distribution operations company, has learned to quickly adapt in the face of disruption by having an astute awareness of its sales and costs, which naturally point to potential structural concerns. As a result of its continued diligence, the company remains engaged, optimistic, and enthusiastic about the supply chain industry in the country.

Project Manager: Taylor Green
Supply Chain Outlook Issue 1 | 291
Renier Du Preez, CEO
Efficient – Reliable – On The Move
CONTACT US 0817133471 / 083 560 1385 / 061 441 1192 vickystransport@telkomsa.net isha@vickystransport.co.za vickystransport.co.za

DIGISTICS’ VALUEADDED LOGISTICS EXECUTION

• Value-added logistics services

• Demand management

• International freight management

• Inbound management

• Warehouse management

• Transport management

• Distribution management

SUPPLY CHAIN MANAGEMENT

• Consulting services

• Technology solutions

• Managed services

• Contract logistics

• Management solutions

“The supply chain is really one of the most exciting areas to be in; there’s just so much that’s happening,” opens Renier Du Preez, CEO of Digistics.

Offering primary and secondary logistics solutions, Digistics works to promptly move products from suppliers to distribution centres. The company also has significant capacity for storage logistics solutions, and its vision to provide ‘the perfect delivery’ is enabled by prioritising its customers’ needs.

“Our mission is to provide customers with a competitively priced supply chain business solution. We try and synchronise the critical exchange between information and people,” he details.

Digistics’ main focus is on the restaurant industry, and it works with a whole host of global brands, including KFC, King Pie, McDonald’s, Ocean Basket, Burger King and Pizza Hut. Its commitment to service, quality, and

cutting-edge systems and technologies allows the company to maintain strong relationships with its clients and cultivate a reputation for excellence.

With distribution centres across South Africa, in Cape Town, Durban, Gqeberha, Bloemfontein, and the Gauteng region, the company employs around 1,184 members of staff and boasts over 287 fleet vehicles across the country.

Digistics focuses on creating a highly competitive service for its customers, and with the support of its holding company, Super Group Holdings (Super Group), a broadbased supply chain management business listed on the Johannesburg Securities Exchange (JSE), has allowed it to continue to meet this objective.

“Our relationship with Super Group helps us to unlock opportunities and assists the company more widely,” explains Du Preez.

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Super Group is essentially a supply chain mobility company revolving around the optimisation of supply chain processes and vehicle fleets, with a strong IT focus and technology underpin.

The supply chain division provides a platform for the group’s core expertise and offerings, which is applied to vertically integrated across companies offering logistics services across industries within South Africa.

Founded in 1986, Super Group has an international footprint and offers customers a comprehensive range of products and services. In essence, Super Group integrates supply and demand management within and across companies.

In 2012, 51 percent of Digistics’ shares were sold to Super Group, who later bought out the balance of the remaining shareholding in 2017, which

has allowed Digistics to grow significantly over a short space of time.

STANDING OUT FROM THE COMPETITION

Notably, Digistics’ business model sets out to define the company as a logistics partner and not just another service provider.

“We exist, live, and breathe the success of our partnerships. We’ve had 100 percent retention of all our contracts since inception and we focus on continuing to deliver customer success. It almost flows through the veins and the blood of our existence,” enthuses Du Preez.

Digistics believes that by keeping its partners’ interests at heart, it can present disruptive and tailored solutions driven by customer needs.

Something that allows Digistics to execute its quality targets consistently

in a supply chain context is its vehicle design. Each vehicle allows the company to transport frozen produce and ambient product from supplier to customer without the need to mix, chill, or dry, instead prioritising product quality by keeping it chilled at the correct chill temperature.

“This is definitely something that is unique, and it talks to the quality of the food that we deliver, because we’re able to maintain the product temperature across the supply chain,” he comments.

Digistics cultivates a dedication to assured supply and delivers best-inclass solutions, as it understands that customers cannot often buy the product that they’re looking for in any other supply chain. Du Preez exemplifies this concept through one of Digistics’ global brands, McDonald’s, and its unique offerings.

DIGISTICS AFRICA

“If you’re looking for milk and you can’t get it at one store, you can walk into another store and almost certainly find milk. However, if you want a Big Mac, you can only get that in one place: McDonald’s. We understand the importance of reliably providing our customers with the exact product they need.”

Digistics also considers itself to have the best technology on the market, whilst its warehouse design is based on network optimisation, informed by where customers are located to ensure best-in-class pricing.

“We are very competitive on pricing, so you’re getting the best quality and the highest reliability for that price,” he excites.

Sustainability also plays an important part in Digistics’ operations as the company works to reduce its reliance on fossil fuels, remain

eco-friendly, and lower overall costs.

“Some say that sustainability is expensive, but we’ve found that, on many projects, it reduces costs in the long term,” Du Preez insights.

The company believes strongly in playing a role in creating a sustainable future for its immediate community and beyond.

SUSTAINABILITY PROJECTS IN FOCUS

Inspired by South Africa’s historic use of local crude oil to create its own diesel, thus reducing nationwide reliance on imported fuels, Digistics has begun to engage in practices to create a circular economy within its own supply chain.

Digistics is shrewdly aware that many of its customers, such as KFC, generate a lot of waste in the form of used cooking oils and fats. Such clients are regarded advantageously,

as Digistics has begun to collect the used oils to convert into biodiesel for the company’s vehicle fleet.

Use of recycled oils to power its vehicles allows Digistics to achieve lower fuel costs compared to local diesel, reduce its environmental impact, and alleviate its reliance on diesel supplies.

“This not only creates a competitive advantage but gives us unlimited access to fuel (biodiesel) should there ever be a shortage in the country or globally,” Du Preez highlights.

Digistics is also currently working on developing solar and battery storage solutions for its vehicles. The aim is to achieve one of the nation’s biggest axel-driven fleets, which is recharged by the energy of the vehicles themselves.

Motivated by similar battery recharge models in Europe, Digistics has set out to introduce four

296 | Supply Chain Outlook Issue 1 DIGISTICS AFRICA

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sustainable axel-driven trailers to its fleet by January 2024.

“I believe this will reduce our fuel consumption and add a lot of other benefits with regards to ecofriendliness,” Du Preez reflects.

Digistics’ sustainability projects allow the company to create a contingency, whilst reducing costs and creating value for its customers.

“That’s why we elected these projects; they’re no brainers and complement what we do as we’re able to create a competitive advantage not just for ourselves, but for our customers in the markets that they operate in,” he insists.

Each of Digistics’ distribution centres is provided with an environmental scorecard, tracking the amount of material the company recycles and reuses, its energy and fuel consumption, as well as its landfill contribution.

WHY CHOOSE DIGISTICS?

RELIABILITY – To take pressure away from the customer, Digistics schedules deliveries before and after peak times, and sends notifications prior to arrival. The company understands that reducing delivery time is critical for the customer and allows for increased overall efficiency.

TECHNOLOGY – Digistics embraces ongoing technological changes by using the latest warehouse technology to optimise its operations. The company has developed a centralised management system through its control tower, which enables alignment across team members to always ensure customer-centric execution.

ADAPTABILITY – Digistics is always ready to collect an emergency order when suppliers cannot deliver and has an emergency customer order ready within an hour. The company also integrates an awareness of route closures within its operations.

SUSTAINABILITY – Digistics believes in making early investments to lower its greenhouse gas emissions, and by using the latest routing software to drive efficiency, it reduces the distances travelled. The company is generally focused on a more sustainable, ethical, and responsible future.

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Additionally, the company’s sites all have an environmental management system in place and are on the way to achieving ISO 14001 certification – an internationally recognised benchmark for sustainability.

COMPANY EXPANSION

Digistics plans to expand across two facilities in the coming year, whilst a new North Distribution Centre (North DC) will extend the company’s national outreach.

A major focus for the company is the integration of solar energy within its distribution centres. In Q1 next year, it plans to implement a ZAR35 million solar battery storage system.

“Yes, it’s expensive, but the technology will allow us two hours’ worth of battery savings at night, and up to six hours in the daytime. In total, that’s about eight hours of savings,” informs Du Preez.

In the midst of national electricity price hikes, which are anticipated to raise South African electricity costs

by around 14 percent in the next year, Du Preez considers Digistics’ move towards renewable energy an astute business decision.

“For every eight or nine percent that the government increases national electricity costs by, we shorten our payback period with around one year, so it really makes sense,” he explains.

Overall, Digistics has so far installed over 3,380 kilowatt hours (kWh) of solar at four of its six distribution centres, with further expansion planned for 2024, adding 7,719kWh of battery storage.

The company is also planning to expand its recycling efforts by reusing cardboard from client deliveries. However, the potential of mixing food waste with materials intended for recycling during transportation has presented an obstacle.

“You can’t put the waste in with the food that you deliver,” Du Preez explains.

“We’re looking at a partnership with

a waste company where we consolidate waste collection, whilst also considering partitioning our trucks into two sections, where you can deliver from one section and collect cardboard and food waste from another.”

By streamlining its delivery and waste collection services, Digistics aims to reduce customers as well as its own emissions whilst delivering a cost saving for customers.

OVERCOMING CHALLENGES

South Africa’s electricity is supplied by Eskom, a government-owned and managed electricity company. As a growing business whose refrigerated facilities account for a large portion of its trade, Digistics’ reliance on electricity is now more critical than ever.

Amidst a national electricity shortage, considerable civil unrest has occurred in South Africa of late. The scarcity of electricity and water presents a real problem for many businesses.

300 | Supply Chain Outlook Issue 1 DIGISTICS AFRICA
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“Our biggest challenge is our reliance on Eskom and anticipating a national blackout. This has pushed us into thinking more aggressively about how we embrace eco-friendly practices, whilst seeing an opportunity to create less of a reliance on Eskom by generating our own electricity.”

Digistics has created a considerable competitive advantage for itself by establishing an in-house electricity supply through the use of large solar capacity and generators that can run all night.

“Most of our customers rely on generators powered by Eskom, and as much as 60 to 70 percent of their stock is covered by these generators. There’s a very real chance that the only stock they may have left to trade with after potential blackouts will be sitting at Digistics, powered by our generators and solar reserves,” Du Preez details.

Digistics also faces challenges presented by South Africa’s water shortage, as a lot of water is used in the company’s refrigeration plant and day-to-day activities.

“We’re looking towards a bore hole and filtration solution, and we’re also using rain harvesting. A lot of rain harvesting strategies are in place at the new North DC.”

The company has installed water holding tanks of between 15,000 litres (l) to 45,000l at all its facilities. Digistics plans to hold up to 150,000l underground at the North DC to ensure it is more self-sufficient from a water supply perspective.

“By bringing a focus on sustainability to the fore, we obtain a self-sufficient mindset. I think this helps us to overcome challenges,” outlines Du Preez.

SOCIAL RESPONSIBILITY PRACTICES

The fabric of South African society has been affected by a history of apartheid and unrest. Motivated by a sense of social responsibility, Digistics has founded several initiatives with the objective of uplifting the local community.

The company’s work with Shine, a charity that focuses on improving the literacy levels of local children in third and fourth grade, is emblematic of its dedication to social work and its investment in education.

“No business can exist without strong communities. It is therefore important that we do our part to make these communities stronger,” Du Preez comments.

Additionally, Digistics’ work with Campus, a charity concerned with the care of abused women and children,

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C M Y CM MY CY CMY K 0810-advert-print.pdf 1 2023/10/27 16:07 Supply Chain Outlook Issue 1 | 303 DIGISTICS AFRICA

provides much-needed funding to enable the charity to continue with its important work.

The company’s investment in Thousand Hills, a charity based nearby in Kwa-Zulu Natal, enables community members in surrounding towns and villages to grow their own food and become self-sufficient. In many ways, Digistics’ activities with Thousand Hills particularly resonate with the company’s own ethos of cultivating self-sufficiency and independence.

“I think it’s important for any company that operates within South Africa to be involved with charity work. You’ve got to be relevant to the community that you serve, and that’s why we’ve got quite a lot of activity in that space.

“It all starts with extensive training and a focus on extending the operating life of all our assets,” Du Preez reflects.

PRIORITISING PROCUREMENT

Naturally, Digistics has a large supply chain operation, and benefits from keeping an in-house procurement team, which allows the company to maintain control over its finances.

“Procuring the stock and selling it on means that 85 to 89 percent of our

turnover is paying for stock. Managing the working capital is therefore critical and can only be done with an in-house procurement team,” he explains.

Assured supply is what drives the business and allows Digistics to closely monitor its products, processes, and performance.

“Our core existence is based around assured supply. If we can see the product, we know when we’re going to run out or where there’s challenges,” states Du Preez.

“This allows us to trigger contingency and make sure we can guarantee supply to our clients.”

The company’s focus on assured supply enables it to obtain best-inclass pricing, and independently manage its value proposition to customers.

Looking ahead, Digistics intends to accelerate its sustainable biodiesel project with an international rollout. In partnership with its parent company, Super Group, the company is looking to implement the biodiesel initiative more widely across the company’s whole fleet.

In addition, Digistics is consolidating its plans to build the new North DC by merging two of its large, older facilities.

“Again, the North DC is focused on the very best that we can get out of sustainability and energy reduction,” emphasises Du Preez.

Furthermore, the company is seeking to expand more widely within Africa and further into Europe.

“This is a top priority for us because at the end of the day, we’ve got to deal with challenges and expanding the business will help us to do that,” he expands.

Digistics is also expanding its information technology and control tower capabilities. At present, the company has a lot of control tower capability, and this plays a large part in how it manages day-to-day planning, function, and physical execution of its processes.

“We look for those areas where we can add value to current customers, how we can package their offering, developing disruptive capability, and then grow market shares where the opportunities exist,” Du Preez concludes.

www.digistics.co.za 304 | Supply Chain Outlook Issue 1

PROUDLY PARTNERING WITH DIGISTICS

0430
011 887
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Supply Chain Outlook Issue 1 | 305 DIGISTICS AFRICA

SEAMLESS, STREAMLINED, AND SUSTAINABLE SUCCESS

AThe family-owned Weerts Group enjoys uniquely inherent advantages. Didier Weerts, CEO of Weerts Supply Chain, and Christophe Weerts, Vice President of Business Development at Weerts Logistics Parks, discuss their divisions’ agility, flexibility, accessibility, and continual investment in the future

djacent to the River Meuse in Belgium is the city of Liège, the economic capital of the Wallonia region and the headquarters of Weerts Supply Chain (WSC). One of four different yet complementary business fields of the family-owned Weerts Group, WSC is included in the company’s portfolio alongside motorsport, logistics real estate, and energy.

As the successor of Transports Weerts & Fils, founded in 1918, WSC grew into one of Belgium’s leading national road transport companies over four generations. In 1989, the company diversified its services by adding contract logistics and began to gain experience in the construction of logistics real estate, which eventually became its focus.

Since then, Weerts Group has

Christophe Weerts, Vice President of Business Development, Weerts Logistics Parks
306 | Supply Chain Outlook Issue 1

been successful in expanding its divisions, with the addition of Weerts Energy in 2022. This new venture has implemented a comprehensive energy strategy across the group’s entire portfolio, specialising in financing and customised renewable solutions for its properties, actively contributing to the net zero transition.

Currently, Weerts Group – more specifically Weerts Logistics Parks

(WLP) - operates in multiple European countries, including the Netherlands, Luxembourg, Germany, France, the UK, Italy, Hungary, Romania, and Belgium. The company is divided into four robust units, each with a different focus, yet they all share the same values of innovation, sustainability, and excellence.

“Road transport was the origin of the business, which commenced

Supply Chain Outlook Issue 1 | 307 WEERTS GROUP EUROPE & MIDDLE EAST
Didier Weerts, CEO, Weerts Supply Chain
“WLP PRIDES ITSELF ON EXERCISING ITS RESPONSIBILITIES CONCERNING SOCIAL STEWARDSHIP AND ENVIRONMENTAL IMPACT BY OPERATING IN THE MOST SUSTAINABLE WAYS POSSIBLE”
– CHRISTOPHE WEERTS, VICE PRESIDENT OF BUSINESS DEVELOPMENT, WEERTS LOGISTICS PARKS

REDEFINING EUROPEAN LOGISTICS

WLP, which forms an essential component of Weerts Group, is committed to developing cuttingedge logistics parks that cater to the specific requirements of third-party vendors and end-users.

These facilities display strategic location choices, an unflinching focus on sustainability, and superior operational efficiency.

modestly after the First World War. The road transport division grew into one of Belgium’s leading companies in that sector until it was sold in 2008. Following that, Weerts Group continued to develop its logistics expertise, with a strong emphasis on technological innovation and an endto-end approach,” introduces Didier

Weerts, CEO of WSC.

Focusing on food, consumer products, household appliances, electronics, and industrial logistics, WSC illustrates its scope with a presence in seven locations, over 350 full-time employees, and a total footprint of approximately 250,000 square metres (sqm).

“Our local partnerships in the countries we operate in are crucial to our success; they combine global innovation with regional expertise to ensure that solutions are tailored to each market’s unique requirements,” opens Christophe Weerts, Vice President of Business Development at WLP.

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WLP has set out a clear roadmap of strategic site selection, an ongoing commitment to sustainability, and a pioneering approach to technological innovation.

“Short decision lines are one of WLP’s major strengths, and the company’s quick action is a testament to this. It continues to remain one of our top priorities and aligns with one of our core values – simplicity,” Christophe expands.

In addition, WLP is dedicated to delivering exceptional services to its customers, both during the construction phase and after the buildings are completed. The company maintains strong relationships with its tenants, seeking to understand their requirements and being their primary point of contact

to ensure continued partnerships and support.

Like the other divisions within Weerts Group, WLP is committed to sustainability and plans to install 274,000 solar panels and four wind turbines by the end of 2025, with a further two to follow by the end of 2027.

Furthermore, WLP buildings are equipped with first-class insulation, LED lighting, and intelligent sensors to reduce energy waste. WLP has pledged to undertake BREEAM certification for all future logistics real estate developments.

“WLP prides itself on exercising its responsibilities concerning social stewardship and environmental impact by operating in the most sustainable ways possible.

WLP’S PRIME PROJECTS

ITALY’S LOGISTICS INNOVATIONS

• Bari Modugno is an access point to Southern Italy, offering 49,932 sqm of logistics solutions and demonstrating how operational areas can thrive sustainably.

• Fidenza is an important 50,000 sqm hub that fuses environmental awareness and logistical efficiency.

• Venice Park links Northern Italy with the Adriatic Sea and features multimodal capabilities. It boasts LEED Platinum certification, embodying the pinnacle of green logistics.

BELGIUM’S MULTIMODAL HUBS

• Garocentre has an area of 59,312 sqm and is a beacon of multimodal logistics capacity. The site’s strategic location is enhanced by its proximity to the Inland Water Terminal, which provides direct sea links to Antwerp and Zeebrugge. A nearby railway line extends its logistical reach.

• Cargo City West has a footprint of 170,000 sqm and, in collaboration with Liège Airport, will act as a central hub for multimodal shipments, including rail freight arriving directly behind the airport.

FRANCE’S GATEWAY TO EUROPE

• Dunkirk is a significant new facility for WLP, marking the start of a series of ambitious projects and a strategic step into the French market. Construction is due to begin in Q2 of 2024, and it has been designed with sustainability in mind.

Supply Chain Outlook Issue 1 | 309 WEERTS GROUP EUROPE & MIDDLE EAST

“Our aim is to create logistics parks that establish a new benchmark in the industry and incorporate sustainability and efficiency in all aspects of our operations. By capitalising on our strengths, WLP is not only preparing for the future but actively shaping it, ensuring that our legacy continues to redefine the logistics real estate sector in Europe,” declares Christophe.

HARMONIOUS DIVISIONS

Striving for excellence in everything it does, Weerts Group is united by a strategic thread that connects its business units and creates a network of synergistic opportunities and overlaps.

“Although each of the four divisions operates with its own expertise and market focus, they all contribute to a collective strength that is greater than the sum of its parts,” Didier observes.

For example, WSC and its distribution networks support the racing division’s need for the precise and timely transport of equipment

“AT WSC, WE DON’T JUST OFFER STANDARD STORAGE SERVICES; WE GO ABOVE AND BEYOND TO PROVIDE A WIDE RANGE OF VALUE-ADDED SERVICES”
– DIDIER WEERTS, CEO, WEERTS SUPPLY CHAIN

and parts. WLP, meanwhile, demonstrates its logistics expertise by providing integrated solutions to customers and ensuring that projects are strategically located for optimal efficiency.

In parallel, WLP provides the foundation for the energy division to utilise sustainable solutions. These not only power the properties but also provide renewable energy systems for motorsport and logistics operations, further reducing Weerts Group’s environmental footprint.

“Collaboration between different departments can lead to innovation, with breakthroughs in one area driving progress in others. This creates a cycle of continuous improvement and growth, which

strengthens each individual division and opens up new opportunities in various markets. This diversified approach ensures a dynamic and sustainable future,” insights Didier.

Weerts Group aims to achieve sustainable growth while creating value across its entire portfolio for the benefit of all stakeholders, including employees, customers, shareholders, business partners, and society.

“Our most important social contribution is to generate jobs and stimulate economic activity in the regions where we operate. Our efforts to facilitate a positive working environment for our employees were recognised in 2020 with the Logistics Employer of the Year award,” Didier prides.

310 | Supply Chain Outlook Issue 1 WEERTS GROUP EUROPE & MIDDLE EAST

About stow Group

International expertise for safe and reliable racking and storage systems

stow Group is one of the world leading suppliers of racking and automated storage solutions. The core activity is the development, manufacturing and installation of top-quality systems and solutions for warehouse operations. The company employs more than 2,000 people worldwide. In 2023, the Group generated sales of almost €1 billion. It has an extensive pan-European manufacturing presence with nine production sites and a global distribution network. stow Group has two independent brands under its roof: stow and Movu Robotics, both headquartered in Belgium.

Part of the stow Group, stow Racking has been developing, manufacturing and installing a wide range of innovative and reliable racking and storage systems for over 40 years.

Renowned for the exceptional build quality of its products, stow storage solutions are designed using the latest computer-aided design (CAD) technologies with particular attention to detail to ensure quick and easy installation while providing safe and efficient systems to meet the specific needs of each customer.

The stow Racking product range includes a comprehensive range of pallet racking, mobile racking, drivein racking, high bay racking, cantilever racking, mid-rise racking and shelving. stow also supplies single and multi-level mezzanine storage systems. Self-supporting silo racking projects are also designed.

As you would expect from a world-leading storage systems brand, every installation comes with a performance and quality guarantee, and every stow solution complies with the latest national and international regulations and standards.

With 9 fully automated production facilities around the world, sales offices throughout Europe and an extensive network of partners across the globe, stow is an international organisation. This global presence, combined with its extensive range of products and storage solutions, means that stow can undertake complex projects and provide bespoke installations for customers around the world. Get in touch! Our global team of experts would be happy to discuss your warehouse needs.

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Furthermore, WSC collaborates with adapted labour companies that provide meaningful employment for around 100 people at various locations in its Belgium warehouses. Similarly, WLP cultivates a holistic approach, which demonstrates its belief that businesses can be financially successful while also having a positive impact on society.

“In addition to promoting energy efficiency, WLP’s strategy is to construct spaces that help businesses thrive while strengthening the local economy through job creation and community support,” Christophe explains.

INVESTMENTS AND DEVELOPMENTS

WSC invests in artificial intelligence (AI) and various automation initiatives, as well as smart applications for training, communication, and reporting purposes.

It also prioritises the well-being of the workforce by investing in ergonomic workstations and equipment that enables safer and more efficient warehouse operations.

WSC’S SUSTAINABILITY STRATEGIES

WSC’s specific initiatives are an integral part of Weerts Group’s wider sustainability framework and emphasise its commitment to the environment:

• Investing in replacing conventional vehicles with eco-friendly alternatives, such as electric or gas-powered trucks, to reduce the impact of and dependence on fossil fuels.

• Electric equipment and BREEAM-certified warehouses to decrease emissions and increase energy efficiency.

• Carbon footprint analysis, which will serve as the basis for further sustainability targets and initiatives.

Weerts Group recently introduced Weerts Energy, which orchestrates the company’s renewable energy strategy and oversees its implementation across the entire portfolio. At the end of 2022, all former and planned energy investments were merged into this independent division.

Weerts Energy is undertaking a major investment programme to install solar panels across WLP properties. It is also responsible for conducting feasibility studies for possible investments in onshore wind turbines at various logistics locations and the viability of various investments in batteries, including the expansion of logistics sites and the creation of independent battery parks.

Additionally, the Renewable Energy Department serves as a central hub for all energy-related matters within Weerts Group. It extends its services to third-party clients with financing solutions and customised renewable energy strategies for their properties.

312 | Supply Chain Outlook Issue 1 WEERTS GROUP EUROPE & MIDDLE EAST

Takes your fleet further. And your performance, too.

The new Conti Hybrid HS5 & HD5. German engineered high-mileage tyres.

Generation 5. Together we make a difference.

Supply Chain Outlook Issue 1 | 313 WEERTS GROUP EUROPE & MIDDLE EAST
314 | Supply Chain Outlook Issue 1 WEERTS GROUP EUROPE & MIDDLE EAST

Current projects include assessing the possibility of turning forklifts into automated guided vehicles (AGVs), enlarging the use of AI in the division’s warehouses, and making administrative processes more scalable.

Additionally, WSC is developing new pricing algorithms which will allow detailed, complex, and customer-specific analyses.

“At WSC, we don’t just offer standard storage services; we go above and beyond to provide a wide range of value-added services. In the logistics industry, where competition is fierce and margins are narrow, we continuously strive for improvement. That’s why we finance engineering capacity, automation, and AI to keep up with the rapidly evolving landscape,” shares Didier.

Currently, WSC is managing more than 100 projects, from continuous improvement initiatives and automation to onboarding new

clients and operational excellence programmes. Furthermore, to advance its productivity, the division insourced its warehouse management system (WMS) supplier a few years ago.

“We have an in-house development team that writes the code for our WMS. The system is really at the heart of our activities; it steers all movements in our distribution centres,” Didier informs.

WLP heavily invests in many new warehouses, enabling WSC to grow and provide new opportunities for its customers.

“WLP has several projects in the pipeline in France, particularly near Dunkirk, Metz, Sarreguemines, and Châteauroux, to further strengthen its presence and ecological commitment in the country,” Christophe confirms.

Together, WSC and WLP have a number of strategic projects across Europe, and both divisions are committed to sustainable

construction, targeting BREEAM Excellent certification or higher for all new logistics properties.

“We continue to plant trees around our warehouses and invest in environmentally-friendly vehicles to align with our logistics and sustainability goals,” Didier concludes.

Tel: +32 4 246 86 00

info@wsc.eu

www.wsc.eu

Supply Chain Outlook Issue 1 | 315
316 | Supply Chain Outlook Issue 1

FIRST-CLASS THIRD-PARTY PROVIDER

Recently appointed as Managing Director of Momentum Logistics, a third-party logistics (3PL) subsidiary of Gulftainer, Daniel Caton tells us what attracted him to the United Arab Emirates and the region’s leading fully integrated 3PL provider Writer: Jack Salter | Project

Supply Chain Outlook Issue 1 | 317 MOMENTUM LOGISTICS EUROPE & MIDDLE EAST
Manager: Ryan Gray

It’s well documented that the United Arab Emirates (UAE) is the perfect logistics hub, strategically located in the Middle East between Europe, Asia, and Africa, backed by excellent infrastructure and a very friendly business environment.”

The logistics industry in UAE is thriving, according to the recently appointed Managing Director of Momentum Logistics, Daniel Caton, who has observed massive growth in the sector during his time in the country.

Having grown up in the Heathrow area of West London, an equally important logistics hub that plays a

SUPPLY CHAIN OUTLOOK: WHAT EXCITES YOU ABOUT WORKING IN UAE?

Daniel Caton, Managing Director:

“The multicultural environment of UAE makes it exciting. Personally, it’s allowed me to travel to so many countries around the Middle East and Africa.

“On top of that, I’ve had the pleasure to experience these countries and collaborate with people from different backgrounds and cultures. That cultural diversity brings out creativity, innovation, and has made me grow as a person.”

big part in the local community, Caton originally moved to UAE in 2010, pursuing the opportunity to further his career in the industry outside the UK.

“Since I got here, the number of warehousing and logistics developments alone is astonishing,” he reflects.

“My first role was with Kuehne + Nagel in Dubai Logistics City, and there was maybe a handful of warehouses and just a load of desert. Now, there’s hundreds of supersized warehouses and every company you can think of.”

Momentum Logistics was formed just a couple of years before Caton relocated to UAE as a subsidiary of Gulftainer, a leading operator of regional ports and terminals and provider of customised supply chain and logistics solutions.

Launched in 2008 to enhance Gulftainer’s service offering, the company has since evolved and built a strong reputation of its own in the region as a leading fully integrated 3PL provider.

In his short spell at Momentum Logistics, having only joined in September 2023, Caton has already

witnessed the company’s association with Gulftainer in the ports and geographies that the latter operates in.

“Gulftainer operates ports in the UAE’s Northern Emirates, the Eastern Province of Saudi Arabia, and southern areas of Iraq; we specialise in those strategically located trade gateway areas,” he states.

“As Momentum Logistics, we’ve invested heavily in warehousing and transportation, adding value to our clients’ supply chains via operational efficiencies, cost savings, and so on.”

COMPLETE SUITE

With operations spanning the Middle East, Momentum Logistics offers a complete suite of customised supply chain management solutions, including transportation, freight forwarding, warehousing, logistics cities, and container services.

The company has hundreds of dedicated and experienced employees across UAE, Saudi Arabia, Iraq, and the US (it is the first and only operator from the Middle East to manage ports in the US), providing logistics solutions to a loyal band of clients.

318 | Supply Chain Outlook Issue 1 MOMENTUM LOGISTICS EUROPE & MIDDLE EAST

JASPA General Trading Co LLC

JASPA holds over 30 years of experience in the automotive sector and caters to the UAE and GCC region. It offers experience through its range of customised tyre solutions and training to fleet owners to help optimise their operations. The company caters to the complex ecosystem of fleets, logistics, transportation, and rental companies by offering end-to-end solutions for their constantly evolving needs with a fully equipped mobile services van and a network of fitment partners located across the UAE.

Tel : +971 4 224 9353 | Toll Free: 800 - JASPA (52772) Email: sales@jaspa.com | www.jaspa.com

The in-house technical team conducts rigorous product and performance testing to check its suitability for the application with stringent standards. The company’s on-field expertise ensures trust among customers and has been rewarded with turnkey contracts from major fleets and government entities in the UAE. The company aims to provide a seamless digital solution for customer complaints and after-sales support to get rapid resolutions to any warranty claim or complaints.

L O N G M A R C H . A E

MOMENTUM LOGISTICS’ BUSINESS AT A GLANCE

CONTAINER SERVICES

Momentum Logistics offers a wide spectrum of services, from container inspection to trading, leasing, and conversions.

INLAND TRANSPORTATION

The company has been setting the pace for cost-effective and safe inland transport and distribution in UAE.

INLAND CONTAINER DEPOT

Momentum Logistics has the only inland container depot in UAE, with excellent connectivity to highways across the region.

LOGISTICS CENTRES

The one-stop logistics centres allow Momentum Logistics’ customers to enhance their supply chains by routing cargo through its excellent facilities.

CONTRACT LOGISTICS

Designed to cater for clients seeking to outsource a large proportion of their supply chain under the governance of a single contract.

FREIGHT FORWARDING

One-stop freight solution offering a diverse range of customised services, including air freight, ocean freight, customs clearance, and land transport.

320 | Supply Chain Outlook Issue 1 MOMENTUM LOGISTICS EUROPE & MIDDLE EAST
“WE HAVE INVESTED HEAVILY IN REJUVENATING OUR FLEET WITH ALL NEW SCANIA TRUCKS AND TRAILERS, ENSURING WE HAVE THE MOST UP-TO-DATE, FUTUREPROOF, AND COMPLIANT VEHICLES”
– DANIEL CATON, MANAGING DIRECTOR, MOMENTUM LOGISTICS

“They’re complemented by our team of customs clearance and freight solutions experts who take care of our clients’ precious cargo, and supported by one of the youngest truck fleets in the region,” informs Caton.

Indeed, Momentum Logistics has carried out a fleet replacement programme over the last few years, introducing modern, fuel-efficient vehicles.

The fleet now comprises 200

commercial vehicles and 240 multipurpose trailers, deployed at multiple depots to optimise utilisation.

“We have invested heavily in rejuvenating our fleet with all new Scania trucks and trailers, ensuring we have the most up-to-date, futureproof, and compliant vehicles,” outlines Caton.

Scania was the obvious choice to initiate Momentum Logistics’ fleet replacement programme, as a world-leading provider of transport solutions that offers an extensive range of purpose-built trucks and buses for heavy transport applications.

Supply Chain Outlook Issue 1 | 321

The company’s fleet was recently recognised at the 2023 Truck and Fleet Awards, which celebrate those who play a key role in the operations, logistics, and projects at the heart of the Gulf Cooperation Council (GCC) economy, as the company received the Heavy Fleet of the Year award.

“The Truck and Fleet Awards were a great platform for us that showcased our achievements, as well as our improvements in safety,” acclaims Caton.

SAJA’A INDUSTRIAL INVESTMENT PARK

In 2024, the flagship project that Momentum Logistics is embarking on is the development of the Saja’a Industrial Investment Park (SIIP), in a continued effort to develop logistics cities throughout the Middle East. This 750,000 square metre (sqm) site, strategically located on the outskirts of Sharjah, will be home to

warehouses, distribution centres, a transportation park, a container freight station and repair workshop, offices, personnel accommodation blocks, a mosque, and a food court.

Ideally positioned to connect all three of the city’s seaports and Sharjah International Airport, SIIP is expected to become the focal point to unite modes of transport linking with Gulftainer’s terminal operations, creating a truly integrated multimodal logistics facility.

“SIIP is in a prime location to be a warehousing and distribution hub in the Northern Emirates,” states Caton.

“Due to the success of our existing bonded Inland Container Depot (ICD) in Sharjah, we are delighted to expand our logistics footprint in the Northern Emirates to Saja’a, the manufacturing and industrial heart of the UAE.

“We plan to break ground on our first warehouse construction this year,” he reveals.

MOMENTUM LOGISTICS EUROPE & MIDDLE EAST
“Collaborating with the right partners and maintaining strong supplier relationships drives our growth and ensures long-term stability”
“SIIP IS IN A PRIME LOCATION TO BE A WAREHOUSING AND DISTRIBUTION HUB IN THE NORTHERN EMIRATES”
– DANIEL CATON, MANAGING DIRECTOR, MOMENTUM LOGISTICS

INVESTING IN EMPLOYEES

Another of Caton’s personal priorities for 2024, in his first full calendar year at the company, is to invest in the training and development of Momentum Logistics’ employees.

“Ultimately, our staff are the backbone of our business, and from what I’ve seen in my first few months here, we’re blessed that Gulftainer invests significant time and money in empowering our staff through individual and team development programmes.

“A lot of our employees have been

here for a long time, which is a good thing and means they enjoy the company culture,” he notes.

Along with having skilled and motivated staff members, Momentum Logistics’ partners and suppliers are critical to its success.

“Collaborating with the right partners and maintaining strong supplier relationships drives our growth and ensures long-term stability,” concludes Caton.

“I believe it’s really important to build relationships, gain customer loyalty, attract new business, and

then strengthen those partnerships with regular communication, making sure we understand the needs of our clients and partners, and identify opportunities for collaboration and improvement.”

MOMENTUM LOGISTICS

Tel: (+971) 6506 2000

info@momentumlogistics.com

www.momentumlogistics.com

Supply Chain Outlook Issue 1 | 323

DRIVEN TO BE GREAT

Leading European companies continue to choose Kreiss as a reliable partner for road transport and

KREISS EUROPE & MIDDLE EAST 324 | Supply Chain Outlook Issue 1

GREAT

In the dynamic landscape of the European road transport industry, the aftermath of the COVID-19

proven a formidable task, with prices for these vehicles skyrocketing.

Despite these hurdles, Kreiss has navigated through industry turbulence by building resilience and implementing innovative solutions.

Now established as a reliable logistics partner, Kreiss is a major company in Latvia and a noticeable

we tackled the driver shortage by developing new partnerships abroad in Central Asia and India to attract new talents and workers. Meanwhile, in the face of rising equipment costs, we adopted long-term partnerships with our traditional dealerships such as Volvo, Mercedes-Benz, and Ford Trucks to ensure a streamlined supply chain,” introduces Joffrey Thelliez, Head of Business Development at

Supply Chain Outlook Issue 1 | 325

Looking ahead, the industry is witnessing a shift towards eco-friendly solutions, including the adoption of hydrotreated vegetable oil (HVO) fuel, a combination of rail-road transportation, and a focus on eco-driving.

“Our company is at the forefront of actively teaching and monitoring this trend for all drivers working at Kreiss. Additionally, they receive individual reports and coaching sessions based on their driving style and consumption,” Thelliez explains.

This initiative is a positive development for the environmental

impacts associated with the company and simultaneously cuts fuel costs across the business.

Elsewhere, Kreiss is involved with testing a new electrical truck model, but challenges remain due to the lack of charging infrastructure and time needed to fully recharge batteries, so at present, Kreiss offers HVO to all customers who rent its trucks.

“While challenges persist, I see them as opportunities. Every crisis seems overwhelming in the beginning, but it systematically opens new areas for growth and improvement. This is what is exciting about transport; it always needs to go faster and better,” he enthuses.

“OUR MULTINATIONAL PRESENCE INCLUDES DAUGHTER COMPANIES IN THE UK, GERMANY, AND POLAND, DEMONSTRATING OUR COMMITMENT TO PROVIDING SEAMLESS TRANSPORT SOLUTIONS ON A GLOBAL SCALE”
– JOFFREY THELLIEZ, HEAD OF BUSINESS DEVELOPMENT, KREISS
326 | Supply Chain Outlook Issue 1

ESTABLISHING INDUSTRY PROMINENCE

Today, Kreiss stands as a prominent leader in the full truckload (FTL) industry, boasting a robust fleet of owned assets with 1,500 freight trucks strategically dispersed across Europe.

“Our multinational presence includes daughter companies in the UK, Germany, and Poland, demonstrating our commitment to providing seamless transport solutions on a global scale,” Thelliez excites.

Celebrating its 30th anniversary this year, Kreiss was founded in 1994 by Andrejs Kuzņecovs, with Sergejs Zaļizko later joining in 2000. Both continue to lead the company with

unwavering dedication. Now with over 2,700 employees, the entire business takes pride in its extensive expertise and the trust built over three decades of hard work.

“At the heart of our operations is our specialisation in FTL transport, catering to a diverse range of industries such as fresh and frozen food, pharmaceuticals, textiles, electronics, e-commerce, plants, and manufactured goods,” he sets out.

Moreover, Kreiss’ commitment to excellence is demonstrated through its partnerships with a multitude of high-profile clients, showcasing its versatility and reliability in meeting the unique needs of each industry.

“As we reflect on our journey, we find strength in our achievements, such as our turnover in 2023 which exceeded €310 million for the second time in a row in our history. We also look forward to continued growth and innovation in the dynamic world of road transport.”

TRANSPORT SPECIALISTS

For Kreiss, several crucial factors set the company apart from the competition in the road transport industry.

“Our extensive geographic coverage spans Europe, Central Asia, and China, providing our clients with unparalleled reach and

Supply Chain Outlook Issue 1 | 327 KREISS EUROPE & MIDDLE EAST

connectivity. For example, we can send cargo from China to Europe with e-commerce customers in two weeks. This underlines our commitment to delivering exceptional service across borders,” Thelliez divulges.

Elsewhere, what truly distinguishes the company is its holistic approach to the value chain. In this way, Kreiss controls every aspect, from recruitment and training to fleet management and maintenance.

The Kreiss fleet comprises brand new trucks, approximately 25 percent of which accommodate dual drivers for express delivery, ensuring timely and efficient service. This allows the company’s operations to run 24/7, with a dedicated night shift and multilingual capabilities to enhance customer communication and satisfaction.

Moreover, the company’s resolute commitment to security is most evident at its secure base in Calais, France, which strategically prevents any issues related to stowaways or theft. Kreiss holds certifications such as ISO 45001, ISO 9001, and ISO 14001, which further reinforce its steadfast dedication to both quality and compliance.

“This integrated approach not only sets us apart, but directly translates to benefits for our customers. Our hands-on control of the entire process ensures reliability, efficiency, and peace of mind for those who entrust us with their transportation needs,” he voices.

EXPANSION AND ENVIRONMENTAL STEWARDSHIP

A major priority for Kreiss is the

SUPPLY CHAIN OUTLOOK: HOW DO YOU EMPOWER YOUR STAFF AND RECOGNISE THE CONTRIBUTIONS THAT THEY MAKE?

Joffrey Thelliez, Head of Business Development: “At Kreiss, our ‘people to people’ approach is not just a slogan; it’s a fundamental philosophy that shapes our organisational culture. We firmly believe that our people are the backbone of the Kreiss brand and history. Operating on democratic principles, we extend equal opportunities to all employees, investing time and effort to ensure that each team member integrates seamlessly with customer expectations.

“Our commitment to open and transparent communication is evident in our daily practices. We foster a culture where team members are encouraged to share their ideas, concerns, and feedback. This commitment is reflected in our daily team meetings, as well as regular cross-department meetings aimed at addressing operational challenges and generating innovative ideas to enhance our services and facilitate further expansion.

“Employee empowerment goes beyond communication; it’s about recognising and celebrating their contributions. We have implemented employee recognition programmes and events that spotlight outstanding efforts and achievements. Additionally, we are dedicated to the professional growth of our staff, offering training programmes, skills development opportunities, and

KREISS EUROPE & MIDDLE EAST 328 | Supply Chain Outlook Issue 1
KREISS EUROPE & MIDDLE EAST Supply Chain Outlook Issue 1 | 329

“Currently, our German subsidiary, Rideo GmbH, has proudly registered two LNG trucks with further plans to replace up to 50 diesel trucks. This transition is made possible by Germany’s extensive network of LNG stations, promising a substantial reduction in CO2 emissions,” he expands.

As a result, with the right setup, LNG will prove to be a more costeffective alternative to traditional diesel trucks.

Simultaneously, Kreiss is actively testing electric truck capabilities

“WHILE CHALLENGES PERSIST, I SEE THEM AS OPPORTUNITIES. EVERY CRISIS SEEMS OVERWHELMING IN THE BEGINNING, BUT IT SYSTEMATICALLY OPENS NEW AREAS FOR GROWTH AND IMPROVEMENT”
– JOFFREY THELLIEZ, HEAD OF BUSINESS DEVELOPMENT, KREISS
KREISS EUROPE & MIDDLE EAST 330 | Supply Chain Outlook Issue 1

sustainable alternatives and staying at the forefront of technological advancements.

Geographically, Kreiss’ expansion continues in the UK, Germany, Poland, and soon in Spain.

“Our strategic entry into the Spanish market includes the establishment of a carrier company and the addition of extra sales personnel. We are currently exploring the possibility of deploying drivers and trucks in the country for both domestic and international transports.”

This exciting expansion is not just about reaching new territories; it’s a strategic move to better serve the company’s clients and adapt to the unique demands of each market.

THE ROAD TO FUTURE SUCCESS

As Kreiss approaches its 30-year anniversary, it’s not just a proud milestone, but a testament to the vision and dedication of its founders, who embarked on a journey in 1994

and continue to lead the company today.

Their ongoing commitment has propelled Kreiss to almost three successful decades of growth and the establishment of numerous mutually beneficial partnerships with its valued customers.

“This anniversary is more than just a celebration. It’s a moment of glory and acknowledgment for the entire Kreiss family, including our employees, clients, and partners, who have contributed to our shared success. As we reflect on our journey, we take pride in the strides we’ve made and the positive impact we’ve had on the road transport industry,” Thelliez acclaims.

“Looking ahead, the prospect of entering our fourth decade fills us with excitement and optimism. Despite our successful history, Kreiss is not resting on its laurels. Instead, we are actively expanding our horizons,” he concludes.

Kreiss’ commitment to innovation, excellence, and adaptability positions it to embrace the challenges and opportunities that lie ahead, and the company remains confident that its next chapter will be marked by continued growth, strengthened partnerships, and a bright future.

Tel: +3716 740 9300

info@kreiss.lv

www.kreiss.lv

Supply Chain Outlook Issue 1 | 331

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