13 January 2010 | by Anna Game-Lopata

A proud suite of winners represented the cream of Australia’s Logistics industry as they accepted their trophies at the 2009 Mercury Awards in November.

 

Best Green Initiative winner: Power Docs & Freight, Highly Commended: Linfox & Infor

 

Power Docs & Freight director Mark Power and operations manager Sean Flannery run a small but vibrant, up and coming freight company, which set about creating its own business template for reducing emissions and leveraging this strength to attract clients. Despite their clarity of purpose, Flannery says he was astonished to win, but delighted.

 

“It’s brilliant to be recognised in the inaugural Best Green Initiative category,” he says. Flannery sees the fact that the company has taken emissions reduction into consideration as part of its business plan as the key to its Mercury Awards win.

 

“We’re not only looking for likeminded clients that want to reduce their emissions or have an environmentally concerned client base,” he explains, “we’re also networking with other parts of our industry that view a green commitment as vital.

 

“As a business and an industry participant, we’re hoping to see legislation developed to contribute to the process of promoting emissions reduction as an active way to improve business in the long term.” Mark Power says the next stage for Power Docs & Freight is software. 

 

“We’re developing major software to actually communicate the carbon reductions that we’ve achieved for our clients clearly,” he says.

 

“We’re looking at emissions tracking and hopefully, industry permitting, an emissions-free fleet in 2020.”

 

Top Transport and Logistics Provider: Winner Costa Logistics, Highly Commended: NQX Freight System

 

Costa Logistics took out the Top Transport and Logistics Provider award, to mark its second Mercury awards win.

 

CEO Tim Bolam accepted the trophy on behalf of the company. “We’re very privileged to win the award,” he says. 

 

“It’s exciting that what we’re doing is recognised in the industry.” While Bolam says what’s done within Costa Logistics isn’t rocket science, he believes the company is very focused.

 

“We’ve got a great team,” he explains, “so people, processes, systems, customers and supply all follow.  We all focus around our common goals to enable us the targets to be reached.”

 

Bolam says Costa’s disproportionate focus on culture within its business gives it the winning edge. “At the end of the day it’s people that make the difference, not processes or systems, although these are important,” he says.

 

“Costa has a three year imperative strategy to deliver and is head long into achieving that.”

 

Highly Commended in the Top Transport and Distribution category was Brisbane based NQX Freight System, which developed a vocational training organisation, NQX Freight College, for its staff.

 

General manager Barry Drape accepted the award on behalf of the company.

 

“Three years ago we decided that we weren’t doing enough training,” Drape explains. “The training we were providing was very sporadic and inconsistent.

 

“It’s not easy to get training for people out of places like Emerald and Mt Isa in remote Queensland, so we thought at the end of the day we might be better off developing and registering our own training organisation so that we have access to them all the time.”

 

“Our aim is to train everyone to a level three in transport,” Drape says, “so that’s every forklift driver, every driver, all the handlers, the whole lot.  So there shouldn’t be a person in the company that’s not trained to a certain level.

 

“I think that approach shows our people that we are very serious about them. With this attitude, you get better employees who want to stay with the company.

 

"We’ve already shown that. Over the last 12 months our turnover has dropped dramatically.”

 

Drape says internal training will soon be the norm in the industry. At the end of the day it’s just so convenient and you do more training,” he says.

 

“Whereas if you’re using external organisations, someone will get a great idea and then they might leave, so the training just withers away until someone else comes along 12 months later.  With an organisation of our own, we’ve become self-sufficient.” 

 

Once all his own people are trained, including the subcontractors over the next 12 months, Drape reveals the plan for NQX Freight College is to answer the many requests for training from other divisions.

 

“We expect the training operation to double within the year,” Drape says. “It pays for itself so that’s good.”

 

Best Manufacturer: Winner: Bega Cheese, Highly Commended: Blackmores

 

Despite the fact that the 2009 trophy is Bega Cheese’s second Mercury Awards win in the Best Manufacturer category, the company’s general manager - supply chain Grattan Smith says he was absolutely shocked given the calibre of the competition.

 

“I guess the big difference was that we didn’t do anything necessarily wiz-bang with technology,” he says, “it was just what we achieved with people and their efforts, and the way we’ve deployed the planning strategy of the business.”

 

“Bega Cheese has grown over the last eight years and we’ve taken another step forward to being the premier dairy company in Australia.

 

"It’s a great honour to receive this award on behalf of the team. Our supply chain has excelled in supporting the business during the recent economic uncertainty and continued growth within Bega Cheese.”

 

Smith predicts recognition from the industry afforded by the award will put the cream on the cake for Bega Cheese. 

 

“Industry and peer recognition of our achievements affirms the value and service delivered to our customers,” he says .

 

“They know the service they get and the cost to serve is well under control. It’s recognition that what we’re doing is right.”

 

According to Grattan Smith, relationships are the key to Bega Cheese’s supply chain success. “The whole business has been based on relationships and how we forge partnerships with customers, suppliers and all of the dairy industry participants we engage with.”

 

The major challenge for Bega Cheese currently is incorporating the divergent supply chains that the company has brought into the business during the last 12 months, including additional export markets, Kraft Australia and a broader milk and cheese supply base.

 

“We know that we’ll succeed and will continue to add value for customers,” he enthuses.

 

“There’s still a lot of opportunity out there.” Blackmores’ Liz Burrows says her company is humbled to receive a Mercury award.

 

“At Blackmores,  we don’t think we’ve done anything ground breaking, we have just stuck to our principles of continually improving on what we have,” she says.

 

“We respect the need for sustainable practices and look after our people. Burrows says Blackmores’ greenfields facility in NSW, provided a once in a lifetime opportunity to develop a customised process, matched with a purpose built layout.

 

“We developed a smart flow-through design from production, to storage and through to despatch,” she explains.

 

“This new, more efficient, layout of equipment and product flow is uni-directional; meaning there is less likelihood of product mix-up as there are no cross-over points.

 

“For the business this is great news as it means that goods can be handled, stored, picked and despatched faster and more accurately than ever before.

 

"This approach has had an enormous impact for Blackmores, substantially increasing efficiencies and cost savings and improving our service to customers.”

 

According to Burrows, the new Blackmores Campus is a physical embodiment of the company’s values and commitment to delivering superior products and service to its customers, creating an optimal workplace for its people, and minimising its impact on the environment.

 

“It is encouraging to see that these attributes are also valued by the wider community, and we hope that the recognition we receive for this will inspire others to consider a similar approach,” she says.  

 

“We have a number of people, who have worked at Blackmores for a long time and thoroughly understand our business and the supply chain,” Burrows adds.

 

“They are enthusiastic about continual improvement and work with our IT department who are experts with our ERP system and know how to get the full potential from it.”

 

“This dynamic has allowed us to get our own people to manage the design and testing phase, which is different from many companies who use contracted project staff.

 

"The benefit is the people who were designing and testing understood exactly what was required. We could not have done it alone however.

 

"We had a fantastic partner in Dematic who combined excellent service and understanding of logistics with their own drive to continually improve.

 

“Testament to this was when we moved from four warehouses into one;  the only people who realised we had moved were our operators – our customers had no idea we had gone through a major move as service was not disrupted at all.”

 

Next on the agenda for Blackmores is further improvements driven by customers. “We are enhancing our EDI systems, electronic invoicing, order tracking and identification of product prior to delivery with bar coded labels containing lot number and expiry date details,” Burrows says.

 

Technology Application: Winner Coca-Cola Amatil (CCA), Highly commended: Linfox Logistics

 

High-bay warehouse manager at Coca Cola Amatil’s Northmead facility, Linda Leo says winning an award in the Technology Application category is an honour. According to Leo, CCA wanted to explore new technology to streamline its NSW supply chain. 

 

“We looked out to the marketplace and saw where the trend was heading and we didn’t want to be left behind,” she says.

 

“We jumped on to it, invested in our infrastructure and our people and that right mix brought us to where we are today.”

 

“Looking at the markets around Europe the trend in automated warehousing is strong,” she adds.   It’s great to see that Australia is going the same way. 

 

"The software applications definitely drive the results in terms of efficiency, innovation and greater customer excellence so it’s a step in the right direction for logistics in New South Wales and Australia as a whole.”

 

Asked where CCA might be going in the future, Leo says while the company has come a long way, there will always be improvements and advancements to be made to keep CCA at the cutting edge of technology and development.

 

“I’d like see more automated warehouses as part of our production line which drives the positive results that we have today,” she says.

 

Australian Trader, winner: AU NEW, Highly Commended Obe Beef.

 

Karl Ye, managing director of AU NEW, says his company is quite unique in the market place.

 

A manufacturer and exporter of pharmaceutical products, Ye developed a logistics and supply chain system geared to temperature sensitive products from scratch and built the business up in Asian markets, particularly China.

 

“We quickly realised something had to be done,” Ye says. Our costs were too great as a result of poor handling which was also causing product loss.

 

"That’s why we developed our own warehousing hub system on site and in China to ensure our operators are correctly trained, and there are the minimum number of steps in the handling process.

 

 “It was quite a challenge because of the complexity of importing to Asian countries, in particular, the number of different regulations with which we need to comply and the measures we need to take to prevent counterfeiting, which is a big issue in China.

 

"But it seems to be working now, our costs have reduced and exports are growing.”

 

Ye sees his company as a one-stop shop for export to China. “Our whole approach is quite new,” he says.

 

“So along with the logistics system, the regulations and the anti-counterfeiting measures, we also have a display centre, which is our concept for product promotion. It enables a gathering place to pass on information to our exporters.

 

"We organise regular meetings for our exporters to help them develop a strong understanding of the dynamics of trading with China.” Ye says he was excited to win the award because it provided a good opportunity to meet many professional logistics people.

“We love to learn and develop ideas about how we can do business better,” he says. “It’s also exciting to meet more people who could take advantage of our services and our systems, so it’s a great promotion for our company.”

 

In terms of strategy for the future, Karl Ye says AU NEW hopes to franchise its business in China. “The big picture involves expanding in China,” he says, “so logistics and supply chain is becoming increasingly important.

 

"That’s why it’s an honour to meet people at the awards and learn more.”

 

Simone Tully, CEO of Obe Beef says it is wonderful to be recognised for the work the company is doing. “I’m just representing my shareholders and my family farmers that have put in 12 years of really hard work, particularly my small team of very important staff,” she says.

 

Tully says Obe Beef’s commitment to supply chain and logistics gave the company its winning edge. “We’re realising that trying new strategies, developing knowledge, skills and understanding across every link in the supply chain is critical in today’s environment.”

 

Tully also thinks winning the award will enhance the company’s reputation within the wider food community particularly with its Asian customers as well as those in other parts of the world.

 

While Tully says the future may be tough given the current state of the currency, organic farmers are getting a great season.

 

“We can handle the challenges as long as we get a good season,” she quips.  “But look, our business is growing.  All our customers are growing their businesses and so we hope to continue to grow with them.”

 

Young Professional of the Year, Winner: Benjamin Pryor of BlueScope Steel, Highly Commended Emma Smith of NQX Freight System.

 

Winner of the Young Professional of the Year category, Ben Pryor is Ports Operations Manager with BlueScope Steel Logistics. He says he is stunned and honoured to win the award.

 

“I don’t think I do anything out of the ordinary but I’m thrilled to be nominated and it’s   largely the result of the opportunities that BlueScope has given me over the last six years.”

 

Pryor puts his winning edge down to the broad level of exposure afforded to him by his role.

 

“I think the wide commercial and operational coverage in my role is a plus,” he says.  “That general focus and exposure has probably given me the skills that I needed to do the job.” Ben Pryor says he has a plan to progress through the ranks at BlueScope Steel. 

 

“The logistics business is still well and truly large enough to give me opportunity,” he says. 

 

“The ports & export logistics operation  is a large part of the BlueScope Steel business and together we contribute significant value add to the business.”

 

Highly Commended in the category was Emma Smith, of NQX Freght system who was “stoked” to receive recognition for what she has achieved.

 

“It’s great to realise people are actually watching and value what you’re doing,” she says. “I think the appreciation for what I’ve put in is the biggest buzz.” 

 

Smith says her involvement in developing and running NQX’s enterprise RTO, NQX College promoted her success in the awards.

 

“NQX College is something new to the industry,” she enthuses.

 

“We were aiming to improve the career path for our people so they will see their roles as more than just a job that pays the bills.

 

"I’m very proud of the results and definitely grateful to be recognised.  I’ll be telling all the guys at the depots, that’s for sure.”