1 | Logistics August 2007 www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

A colleague, when discussing the

recent SMART Conference, opined

that there is a need for a new

Supply Chain and Logistics (SCL)

paradigm. This lead me to consider the

most important lessons in today’s changing

Australian SCL environment. A very senior

industry colleague said to me at SMART “This

Supply Chain Management thing is taking off

isn’t it Steve.” In his presentation at SMART,

the CEO of Lion Nathan observed that Supply

Chain Management “is business”. The media

is rife with discussion on the strategies that

Wesfarmers will bring to Coles, in particular

with regard to changes in Supply Chain.

This is a strong endorsement of the SCLAA’s

strategies including our goals, vision, mission

statement and recent name and structure

changes. However we need to be self aware

as a profession. Perhaps the most important

lesson in SCL today is less about the SCL

strategies to be implemented, but more about

getting change management right so that SCL

does not become yesterday’s concept as a

result of failed implementation strategies.

You get out of any activity what you put into

it. For me, the opportunity to get away from

the office with time to think about issues and

the topics presented is invaluable. It occurred

to me that in my years of study and practice

of Supply Chain & Logistics Management I

have been presented with many, many ideas

and even more spins on those same ideas.

The fundamentals underpinning those ideas

always return to the simple level. Approached

with the right attitude, conferences are like

that.

I always get a great deal out of conferences

whether through networking, by picking up

one or two pearls of wisdom, being satisfied

that there was nothing new presented that

I would have missed had I not attended,

understanding what others are focused on or

being reminded of or re-learning, something I

had forgotten. It was this last point that I was

left with from this year’s SMART.

Running a modern business requires

management of many disciplines. Sales,

marketing, operations, human resources,

safety, corporate governance, communications:

the list is imposing even at the top level of the

hierarchy. It helps to have an approach for

dealing with apparent complexity. Complexity

is more than many simple relationships. The

pitfall of too many managers is that they

look first for the complex solution, when all

so often it is the simple approach that works

best. Alternately, they introduce the complex

solution into an unstable environment,

creating chaos. Aside from the ‘unfreeze-

change-refreeze’ paradigm and the importance

of communication in bringing your people

along with you, before introducing change,

ensure your organisation has the basics right.

Operate from a firm base.

I once resisted the insistence of a university

lecturer that, in business, leadership is

introducing change. If that is true, then

introducing change consistent with current

capabilities is a core skill for the effective

manager. A manager at any level must focus

on the now and the future. This is called

operations (the now) and development (the

future). Time must be allocated to each in

turn but in a coordinated way. I suggest that

understanding the importance of operating

from a firm base is a lesson that many

managers are re-learning. In Supply Chain

Management collaboration is a strategy that

first requires that a company’s functions and

systems are effective and stable (facilitating

trust and visibility).

I am confronted frequently by capable

managers who make the right decision not to

progress to SCL restructuring (outsourcing

for instance) due to a lack of confidence that

existing functions and systems provide a valid

internal comparative benchmark. In contrast,

I meet with potential clients who wish to

introduce a development e.g. barcoding as

a solution when such an initiative would

either increase the problems associated with

underperforming functions and systems or

potentially mask the real culprit. I have had to

reject work assisting businesses under those

circumstances. Creating change as an illusion

of progress is in nobody’s interests.

My point is this. SCL change is important

but re-learn the lessons of effective functional

performance that have been lost through

ever flatter organisational structures and

ever increasing complexity of managers

responsibilities in order to effectively

implement that change. Businesses operate

as a sub-system of a system called a Supply

Chain. Application of systems thinking

facilitates analysis of the contribution not only

of people, processes, technologies, facilities

etc in isolation but also of the impact of the

relationship between the attributes of those

components on system performance.

An approach that gets back to basics in

terms of understanding your people, processes,

facilities equipment issues and ensuring that

their performance is stable and capable of

handling new approaches and strategies is

just as important as understanding any new

SCL paradigm.

Managers manage complexity through

business structures that are usually

functionally driven. Develop your functional

people in a manner to drive functional

performance. Layer over the top of that systems

thinking and strategies that deliver flexible

organisations and then, and only then, will your

operation cope with the developmental SCL

changes that will determine your competitive

advantage into the future.

The best mechanism for ensuring your

peoples’ functional skills are up to the task –

Australia’s Association for Supply Chain and

Logistics Professionals and Practitioners.. Run

by Members for Members…the SCLAA. Speak

to your local SCLAA State Division Office

about activities and events and membership

benefits for your most important asset – your

people.

Lessons from SMARTImplementing the SCL Competitive Advantage

STEVE MACPHERSON National President SCLAA e president@sclaa.com.au

August 2007 Logistics | 2www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

The Supply Chain & Logistics

Association of Australia (SCLAA) and

the Chartered Institute of Logistics

and Transport Australia (CILTA)

proudly partner to present the Australian

Supply Chain and Logistics Excellence Awards

2007 on Thursday the 22nd of November at the

Sofitel Hotel, Melbourne. Nominations are now

invited for all award categories. The partnership of the SCLAA and CILTA, the two pre-eminent associations representing professionals and practitioners working in, and in support of, the Supply Chain and Logistics industries, make these proud and historic Awards unambiguously the most prestigious and influential in the industry. The closing date for submissions for the 2007 Australian Supply Chain & Supply Chain Awards is close of business on Friday the 21st of September 2007. Nomination forms are available on www.sclaa.com.au and www.cilta.com.au or simply by emailing ceo@sclaa.com.au.

2007 Award Categories2007 Australia Young Transport and Logistics Professional Award The purpose of this award is to provide incentive for, and recognition of, achievement of individuals who are actively involved in day-to-day operations and development of a transport or Logistics organisation in Australia. The award is not limited to a particular discipline in transport or Logistics but may relate to areas including, but not limited to, engineering, planning, policy, Logistics, finance, administration or management. Candidates must be under 30 years of age as at 30th June in the year of nomination.Winner 2006: Rhiannon Russell from SKM (Western Australia)

2007 Environmental Excellence Award (H.A. Ritchie Trophy) For significant achievement in any area of environmental concern including traffic congestion, packaging or waste disposal, recycling, and energy consumption. Achievement in the specific application and in its wider applicability must be demonstrated thereby promoting environmental best practice.Winner 2006: Veolia Environmental Services

2007 Transport and Logistics Achiever of the Year Award (Mike Munns Trophy) The aim of this award is to encourage and acknowledge the outstanding achievement of an individual who is actively working in an organisation within and/or the transport and Logistics industries. The award is not limited to a particular discipline in transport or Logistics but may relate to areas including, but not limited to, engineering, planning, policy, Logistics, finance, administration or management.Winner 2006: Robert Harris from TNT Logistics

2007 Transport and Logistics Achievement of the Year Award ( S.E Pike Trophy) The purpose of this award is to acknowledge an outstanding, innovative contribution to a development in the transport and Logistics industries by an organisation or an individual. The nomination will clearly describe the nature of the achievement or proposal, the circumstances in which it was put into effect, the extent of the individual involvement, the scale of the application, the results achieved and the significance of the achievement.Winner 2006: Oakey State High School, in Queensland

2007 Storage and Handling of Materials Award (Comino Trophy) For significant achievements in the techniques and technology of materials storage and handling at any stage of the Supply Chain. Technology covers equipment and design techniques, including facilities design, and associated information and control systems. Improvements and/or innovation with particular regard to impact on organisational objectives and to contribution to the wider field of materials storage and handling must be demonstrated.Winner 2006: Repco Queensland Distribution Centre

2007 Information Management Award (Len Smith Trophy) For significant achievement in the use of communications, information management, technology and e-business in any aspect of Logistics and Supply Chain m\Management, with particular regard to the added value produced by the achievement.Winner 2006: Sunshine Technologies

2007 Supply Chain Management Award (Doug Beattie Trophy) For significant achievement in managing the integration of Supply Chains. This could be functional integration within an organisational Supply Chain, or more widely across Supply Chains involving several organisations that have formed trading partnerships or alliances. Collaboration and added value across the Supply Chain, achievements gained through outsourcing and the development of new business models could also be demonstrated.Winner 2006: Virgin Blue

2007 Training Education and Development Award (Peter Gilmour Trophy) For significant achievement in any aspect of training, education, or the development of people which is relevant to the Supply Chain and Logistics. This can cover formal education through a tertiary institution, in-company training, training provided by a registered training organisation or private training. Professional development can be demonstrated at any level.Winner 2006: Victorian Department of Innovation, Industry and Regional Development

2007 Manufacturing Logistics Award (John Thompson Trophy) For significant achievement in any aspect of Logistics associated with manufacturing, with particular regard to the effect on cost and efficiency of the total manufacturing process and the integrated Supply Chain. This may include the design or process re-engineering of Logistics flows in manufacturing facilities, integrating Supply Chains, plant layout, forecasting and scheduling production.Winner 2006: TNT Logistics (Australia) Pty Ltd and Mitsubishi Motors Australia Limited

Confirmed Sponsors

Call For NominationsAustralian Supply Chain & Logistics Excellence Awards 2007

3 | Logistics August 2007 www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

SCLAA SMART Snapshots

DAVID DOHERTY National Director SCLAA e ceo@sclaa.com.au

T he SMART conference and the SSCT

Show, held in Sydney as a part of

Supply Chain week at the end of

June proved to be a great success.

It was good to see long time stalwart of

the SCLAA, Roger Vale, at the Smart Supply

Chain Technology show presenting the

unique and innovative materials handling

equipment offered by MOBICON SYSTEMS. It

seems the machines are finding great interest

and resultant deals in a number of export

markets.

CEVA LOGISTICS brought a new dimension

to SMART with several outrageously attractive

young women provocatively attired as Snow

Bunnies. During the Conference these Snow

Bunnies provided neck and back massages

to volunteers from the crowd surrounding

the CEVA Stand. I was tempted, but renegged

as I feared I would not come through the

experience alive!

Jim Hendrickson from Sterling Commerce

(USA) really struck some nerves with his

presentation on Technology. Jim debunked

many of the myths associated with technology

implementation and included many references

to the Gartner 'Hype Cycle'.

This reality check by Jim comprised a

valuable and entertaining learning experience.

I am following up with Sterling Commerce to

see if we can get the Hendrickson presentation

for distribution to SCLAA Members.

Maxine McKew as Chairperson of plenary

and half plenary sessions got a good warm

up for her approaching federal election battle

with John Howard in the seat of Benelong. If

she creates an upset and indeed defeats the

PM it will undoubtedly be due to the excellent

warm up the Supply Chain and Logistics

profession gave her. Return favours will be

sought Maxine!

At the SMART Awards Dinner it was

gratifying to note the winners of the

Manufacturing Logistics Award were TNT

and Mitsubishi Motors. SCLAA Members will

recall that TNT and Mitsubishi Motors were

the joint winners of our Australian Supply

Chain and Logistics Awards 2006 presented

in Perth last November. We must have got it

right!

Jennifer Noonan, Marketing Manager

for Manhattan Associates, a Valued Official

Partner of the SCLAA, was also very busy at

the Smart Supply Chain Technology show

enthusing existing and prospective clients.

Pleasing to see an SCLAA Partner capturing

real and on-going interest in a competitive

market place. SCLAA Members are encouraged

to contact our Partners when an appropriate

business need arises.

Graham Gardiner and Jason Whittaker

from Supply Chain Review (SCR) were located

in the SCR Booth right opposite the coffee

service bar. This year SMART delegates could

order any style of coffee and have it made on

the spot. A great idea, but long queues and

big crowds almost buried Graham and Jason

at morning and afternoon conference breaks.

These guys showed terrific courage to keep the

SCR banner aloft during the coffee riots!

Another innovation this year at SMART was

the book display presented by the THE CO-OP

BOOKSHOP. Delegates swarmed around the

display with brisk sales ensuing. The level

of interest clearly indicated a real thirst for

knowledge in the profession.

The SCLAA operated two booths during

Supply Chain week. One was in the display

area adjacent to the Conference Rooms, and

the other by courtesy of Simon Cooper, a

great friend of the SCLAA, was downstairs

in the Smart Supply Chain Technology show

area. Both booths attracted many current and

prospective Members seeking information. We

are indebted to the people who volunteered

time to work in the booths. They included,

Fulvia Nelson, Bill Henman, Steve MacPherson,

Naomi Miller, Liam Stitt and Damian Cosgriff.

On the SCLAA Stand, one of our NSW

Members in Jose Evora did an outstanding

job. A very interesting thing about Jose is that

his skin is very dark in colour. However, when I

enquired about his country of birth he floored

me by saying it was Norway! Of course most

Norwegians are very light skinned so people

would never guess Jose indeed does come from

Norway. It is an interesting story that we must

feature in a future Newsletter. Incidentally,

Jose is a delightful and interesting person.

NATIONAL NEWS

At the SCLAA Board Meeting held on the 22nd of June the Board accepted the resignation of Mark Helding (Victoria) as a Director. Steve MacPherson (SCLAA Chairman) expressed gratitude to Mark for his valued contribution particularly during the difficult SCLAA start up process. On behalf of the Board he also wished Mark success in his other endeavours.

The Board also confirmed the appointment of John Turner (Victoria) as a Director.

Steve MacPherson then announced that in conformity with the Constitution he would be relinquishing the position of Chairman at the Annual General Meeting planned for September.

John Turner was then unanimously confirmed as Chairman elect.

The 2007 Australian Supply Chain and Logistics Awards are an important national event being presented in collaboration between the SCLAA and CILTA (Chartered Institute of Transport and Logistics). All Members are urged to participate in the Awards that will culminate in a gala dinner at the Sofitel Hotel in Melbourne on the 22nd of November 2007.

August 2007 Logistics | 4www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

Q: Why did you join the SCLAA? What benefits do you believe the SCLAA offers all their Members?

AM: I joined the SCLAA to form a national special

interest group for the cold chain industry and to

organise a committee to undertake projects within the

SCLAA.

The SCLAA have the main benefit of being a national

association and multi-model. The SCLAA are also very

supportive of developing a special interest group for the

cold chain with a sub-group for the food industry and a

subgroup for the life sciences industry.

DR: I joined the SCLAA for the great opportunity it

affords to Members to network with leading industry

professionals.

NJ: I joined the SCLAA to become a part of a group of

people with the same professional interests as mine and

to learn more about the wide world of the Supply Chain.

Gone are the days when you would warehouse product

and make deliveries and that is all that was involved.

Logistics is a complex industry and networking is

critical to success.

Q: How long have you been in the industry? What are your areas of expertise?

AM: I have specialised expertise in cold chain Logistics:

predominantly in the pharmaceutical industry in

Australia.

Prior to Global Cold Chain I was the Managing

Director for a large German company involved in

business and Supply Chain throughout Europe and

the Middle East. I also have tertiary qualifications

in Business Management and finance. I studied a

Post Trade qualification in refrigeration and electrical

engineering which gives me a strong technical

background to call upon. In more recent times, I have

re-structured companies in difficult situations and

turned them around by implementing efficient systems

and processes.

DR: I am fresh into the industry having completed

a Bachelor of Business in 2006 at the Queensland

University of Technology (QUT) graduating with

Distinction. I Majored in International Business and

Marketing. My particular study areas of interest

were analysing South East Asian markets and the

marketing psychology behind consumer/business

purchases and consumption patterns. I am also member

of the Australian Institute of Exporters and I hold

a Diploma of Export Management. However, I am

currently furthering my industry knowledge through

Queensland Purchasing’s 'Procurement Professional

Graduate Development Program'. Upon completion of

the graduate Program in late 2007 I will hold a level 3

Certification in Strategic Procurement and 12 months

worth of industry experience. My placement is at

Tarong Energy Corporation Ltd with Vince Aisthorpe,

the chairperson of the Queensland Supply Chain &

Logistics Conference, acting as my graduate mentor.

NJ: I have been involved in Logistics for over 25 years

now with the 3PL side of Logistics being my focus for

the last five. I am enjoying the ever-changing industry

and the variety of people I deal with on a daily basis.

Q: What is current job role and what are your responsibilities?

AM: I am the Managing Director of Global Cold Chain

Solutions Pty Ltd. My role consists of: Consulting and

liaising with senior decision makers in cold chain

Logistics, developing solutions for the transportation

and monitoring of temperature-sensitive products,

evaluating cold chain practices and providing

economical alternatives, validation of cold chains,

evaluating new technologies for the cold chain industry,

managing a project development team to design and

manufacture cold chain monitoring devices and cold

chain packaging.

DR: My current position as a Procurement Graduate

at Tarong Energy involves undertaking strategic

procurement activities such as: market/supplier analysis

and evaluation; contract management; organisation

wide procurement expenditure and risk analysis;

inventory management, purchasing, and; internal policy

review. I have also been given the opportunity at Tarong

Energy to engage the Supply Chain holistically. This has

involved taking a hands on role within Tarong Energy’s

warehouse following materials through receivables,

inventory, and redistribution, while also meeting and

maintaining relationships with various suppliers and

Third Party Logistic providers. This has allowed me to

gain a comprehensive understanding of the relevant

processes and potential challenges faced within Tarong

Energy’s Supply Chain.

NJ: As National Logistics Manager for Gromarket

Logistics my role is to provide advice and assistance to

my State Managers to ensure our clients warehousing

and distribution needs are met. I also assist our ‘Non-

Logistics background’ clients when they deal with the

relationships with their major customers.

SCLAA New Members

Andrew MeyersManaging DirectorGlobal Cold Chain Solutionsandrew@globalcoldchain.com

Desmond RocheProcurement GraduateTarong Energy Corporationdesmond.roche@tarongenergy.com.au

Nigel JessonNational Logistics ManagerGromarket Logisticsnigel@gromarket.com.au

The SCLAA would like to welcome these new members...

5 | Logistics August 2007 www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

STATE NAME COMPANYDavid Cassar

Anurag A Jain

Simone Treyvaud

Stephen S.R Lanham

Rajesh R Sehgal

Yngve AY Andresen

Shane Azzi

Kassaby Mohammed

Trevor Walker

Karl Heidenreich

Bruce Hope

Clifford Grove

Cassandra Lee

Christopher McCleary

Keith McLellan

Desmond Roche

Kieran Sondergeld

Peter Stevenson

CORPORATE:

Dept of Defence

SDS

Australian Tyer Traders

Pacific Brands

Swire Cold Storage

DKSH Australia Pty.Ltd

Price Waterhouse Coopers

Mars Petcare Aust

Transport Management Solutions

Boral Masonry & Roofing

Northline Freight Management

Corporate Logistics

SDS Logistics

Davidson Recruitment

Bundaberg Sugar Limited

Powerlink Queensland

Tarong Energy Corporation

Ideal Electrical

Enertrade

Joint Logistics Unit (SQ)

Department of Public Works

SCLAA New Members

VICTORIA

NEW SOUTH WALES

SOUTH AUSTRALIA

QUEENSLAND

The SCLAA would like to welcome the following new members...

August 2007 Logistics | 6www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

T he SMART Conference

was a great success

again this year with

approximately 900

delegates attending from many

geographic locations around the

Asia Pacific Basin. The Delegations

from America and India provided

very different perspectives about

how Supply Chain Management

is being implemented in their

regions.

It was interesting to talk with

an Asia-Pacific manager who is

hopeful of supplying software

systems to a major retailer in India.

This retailer is planning to change

the whole retail market in India

opening five mini supermarkets

each week and locating a store

every half a kilometre within the

major cities. The Company hopes

to employ 10,000 ex-patriots to

implement this new concept in

addition to 250,000 shop assistants.

I guess Woolworths and Coles are

small when compared with this

new Indian initiative.

The Key Note Speaker from

'Peak Oil' predicted that the world

is most likely to run out of oil

within the next 20 years as no new

major oil fields have been found

and demand continues to grow.

He pointed out that even using

bio-fuels and alternate energy

sources will not bridge the gap.

From the information he provided,

it appears that China has well

and truly covered its bases by

securing supplies out of Africa in

addition to the Middle East. They

are also predicted to have the same

number of motor vehicles on the

road within ten years as America

currently has which only serves to

underline the growing demand for

oil.

There were many other

interesting presentations and

perspectives about Supply Chain

improvement.The networking

opportunities proved valuable for

everyone and the SCLAA, as part

of the organising committee, has

labelled this event a great success.

Some sponsors have even registered

their interest for the 2009 SMART

Conference in Sydney.

Nationwide Event Wrap-ups

"The Supply Chain Technology Show held in association with the SMART Conference provided outstanding opportunities for real hands on learning across every element of Supply Chain, covering seamless flows from 'origin to use'. Professionals and practitioners alike enthusiastically embraced the unique style of the exhibition which created an easy going environment conducive to optimum use of time.Exhibitors took the opportunity to showcase innovative new and developing technologies. All in all a great show!"

David Doherty, National Executive Director

“The 2007 Smart Supply Chain Technology Show was an important event for the SCLAA and its Members. In conjunction with the SMART Conference, this was the largest opportunity to reach members of the Supply Chain and Logistics Industry in one location available this year. The SCLAA was very pleased with the response it received from exhibition attendees to our booth at the Smart Supply Chain Technology Show. Many potential new Members provided positive feedback on the activities of the Association and we look forward to meeting their needs well into the future.”

Steve MacPherson, SCLAA National President

“The level of interest shown from the Smart Supply Chain Technology Show attendees proves that taking the step to the SCLAA was the right move. The broader Supply Chain and Logistics focus now being provided by the SCLAA is being well accepted and shows that the future is strong for the association that has now been around in a number of forms over the last 40 years. Interestingly, the SCLAA focus on Members services, strong networking opportunities and a truly national presence proved to be the difference that sets the SCLAA apart from other associations. The number of membership applications and enquiries received during the show was encouraging for the future of this member driven association.”

Liam Stitt, SCLAA Queensland President

SSCT Show, SMART and Supply Chain Week

BILL HENMAN SCLAA NSW Presidente nsw@sclaa.com.au

7 | Logistics August 2007 www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

A Special General Meeting of the LAA

(WA) Inc, held at the Swan Brewery in

June resolved to wind up LAA (WA) Inc

voluntarily. This is the final step in

implementation of the Members’ resolution at last

years AGM to establish the SCLAA nationally.

An ‘efficient but effective’ meeting was attended

by a good number of Members. This was followed

by a tour of the Swan Brewery, a few ‘refreshments’

and a good opportunity for Members to network,

share challenges, offer support and generally enjoy

the experience.

WA SGM

A number of changes are occurring on the WA Committee. The SCLAA (WA Division) Committee would like to congratulate Jason Coglan and Nick Munyard on their contribution to the Committee. Both have new challenges work-wise and are taking a break from the committee. We welcome new Members Blair Pierson, Brian Lynn, Andrew Gadd, Jim Kelly and Rebecca Taylor. At the time of writing this article the appointment of a new Executive Manager is imminent. Watch out for new initiatives related to this.

T he 2007 Awards

Committee has been hard

at work. Brochures for

the 2007 SCLAA/CILTA

Ascot Awards will be out soon.

The SCLAA is pleased to

announce that the VET in Schools

Award, championed at last years

Ascot Awards for the first time,

has been included in the formal

suite of Ascot Awards. This is a

credit to Committee members Steve

Kitching, Silvio Ranieri, Kingsley

Waterhouse and Navinder Singh.

Your SCLAA is working hard to

promote the industry to potential

new employees for your business.

If you would like to know how you

can help or promote your business

to this sector, contact your President

or the office.

WA 2007 Awards

WA Committee

Western Australia Event Wrap-ups

South Australia Event Wrap-up

Tuesday July 3rd saw the first Logistics Lounge

held in SA. Although not a large gathering

our guest speaker, Phil Hope, Corporate

Supply Manager for Mitsubishi Australia

provided an overview of the vehicle manufacturing

industry sector and the market challenges it faces.

Mitsubishi have also broken new ground with

a complete overhaul of its Tonsley Assembly Plant

global inbound Supply Chain structure. This has seen

stock availability on the assembly line being 100% as

the norm, along with a reduced total Supply Chain

cost. We thank Phil for his informative and interesting

presentation.

Questions, discussion and light refreshments

followed giving all an opportunity to explore the

many questions and ideas raised. Thanks to all who

attended and we look forward to our next event.

SA's inaugural Logistics Lounge

August 2007 Logistics | 8www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

Association Sponsors As each LAA incorporated state-based

body, namely LAA Qld, LAA Victoria, LAA South

Australia and LAA Western Australia wind

up their state-based entities and transfer

their assets to the national organisation, the

SCLAA will be well placed to add additional

value to our current and potential sponsors.

To date, we have a number of state-based

sponsors who are keen to be more actively

involved with the nation-wide SCLAA.

Our website provides details of standard

sponsorship packages but Divisions are able

to negotiate personalised packages where

sponsors have particular needs or market

segments which they wish to target.

NSW Division Emerges

Conference Planned for 2008 Sydney will host a knowledge-based

conference in April 2008 in conjunction

with a well-known trade display exhibitor.

This decision was made by the SCLAA

National Executive and planning has already

commenced. The details are still emerging

and will be widely-communicated through

Trade Magazines and various industry web

sites. This Conference will focus on both

practitioners and professionals and will offer

‘something for everyone’.

Linking suppliers of equipment, technology

and training to an educational event provides

an excellent opportunity to combine theory

with practical. The two-day Conference will

include case studies, workshops, key note

addresses and government perspectives which

will impact on Supply Chain Management

over the next ten years and in particular

the massive growth in handling imported

product.

The SCLAA had a stand at the SMART

Conference which generated a good

deal of interest from the many

conference delegates. The most

frequently asked questions of those manning

the stand was “Why was there a split between

the SCLAA and LAA?” Everyone can justify why

a particular position was taken or a process

implemented. The SCLAA has tried on a number

of occasions to have a 'meeting of the minds'

and last year both organisations held formal

mediation meetings – unfortunately without

success.

In relation to this, a number of positives

emerged during the SMART Conference

where Directors and Board Members of both

Associations had informal discussions about

pathways to work together in a manner to benefit

the business community and membership.

Now that the NSW SCLAA Division is growing

in both membership numbers and corporate

sponsors, it is true to say that the SCLAA is

truly a national association which represents

those interested in Supply Chain Management

and Logistics. A number of events have been

planned for this year which should be both

informative and educational to attendees.

Sydney and Melbourne are both major

centres for Supply Chain Management and

form the base of the majority of the industry

decision makers. NSW Division is starting from

a very low membership base as the majority of

potential members are currently with LAA Ltd.

Persons who are currently financial Members

of LAA Ltd will be offered a full year’s free

membership to the SCLAA starting from 1 July

2007. This was agreed at the recent National

Executive Meeting and will be implemented

effective immediately.

BILL HENMAN SCLAA NSW Presidente nsw@sclaa.com.au

The Victorian Branch of the SCLAA recently

hosted two Logistics Lounges on the topic of

transport and Logistics contracts. The speaker

was Naomi Miller, a solicitor in the Transport

and Trade team at DLA Phillips Fox - one of the largest

legal firms in Australasia and a member of DLA Piper

Group. Naomi specialises in commercial and litigation

matters in the transport and Logistics industry, and acts

for a variety of marine insurers, importers, exporters,

freight forwarders, customs agents and cargo owners.

Naomi has been involved in advising several large

Australian manufacturers in relation to tenders for

freight services, including providing probity advice in

relation to the tender process. Naomi also has experience

in drafting various forms of commercial and regulatory

documents, including:

Licences in relation to activities within ports.•

Standard terms and conditions of carriage.•

Agency agreements.•

Prior to joining DLA Phillips Fox, Naomi worked as a

Policy Officer for the Victorian Department of Justice. Her

work included projects such as 'Chain of Responsibility'

reforms in the road transport industry, drug driving

regulation and legislative reforms in relation to speed

enforcement.

Naomi's presentation focused on the key legal risks

that underpin the provision or procurement of transport

and Logistics services. Whether set out in consignments

notes, bills of lading or formal long-term agreements,

these risks must be addressed by both the supplier and

customer.

In an increasingly regulated and sophisticated global

industry, Naomi's presentation will aim to provide you

with some tips in how to simplify your arrangements

and ensure that key legal and operational risks are

addressed.

VIC Logistics Lounges

9 | Logistics August 2007 www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

Victorian Snapshots

Victorians At SMART Conference Committee Member and Phillips Fox Lawyer

Naomi Miller gave an excellent presentation on

legal pitfalls and best practices for Tendering

at the recent SMART Conference in Sydney. The

audience loved it. This was evidenced by the

queue of people seeking further consultation

after the session. Well done Naomi!

Academic Dr David Wilson was enthralled by

the presentations given by the academics and

practitioners from the Council of Supply Chain

Management Professionals (USA), and Professor

Peter Hines from the Lean Institute (UK).David

boasted that eventually he got the autographs

from his Supply Chain heroes!

Coming Up Another super Networking Night is coming

up on August 29. Good wine, good company,

and a chance to do some discreet networking,

blatant benchmarking, and learning! The last

Networking night proved to be a huge success

so you must lock the date in now in order to

avoid disappointment.

More advance notice on a unique event.

In early December the worlds best Supply

Chain and Logistics Christmas function will

be organised in association with a Lawn Bowls

evening.

Beginners, regular players, and observers

will all be welcome to give it a go bowling a go

in a relaxed and fun filled environment. Lock

this one in too! Naomi Miller and Elsie Hooi are

the architects of this groundbreaking event.

The Gala Dinner presentation of the 2007

Australian Supply Chain and Logistics Awards

will be held at the Sofitel Hotel in Melbourne

on the 22nd of November. We need your support

to make these Awards the best ever. John

Edhouse is Chair of the Awards Committee

that embraces our partners in the Chartered

Institute of Logistics and Transport. Go to the

web site for SCLAA, www.sclaa.com.au,to get

more details on nominations, sponsorship, or

bookings for the gala presentation dinner.

Membership Renewals If you have not yet renewed your SCLAA

Membership please take the time to do it

now. Your membership is very important. This

Association is “run by Members for Members”

and we need your commitment in order to deliver

real value to you, and to maintain ongoing

improvement in services for all Members.

We also ask every Member to contribute to

the growth of the SCLAA by signing up one new

Member, or to recommend a person who we sign

up as a Member. Discount incentives on your

own renewal will apply in regard to every new

Member you encourage to sign up. For more

information Email Fulvia Nelson at vic@sclaa.

com.au

Certification Any Member interested in pursuing

Certification via the newly instituted and

industry acknowledged Certified Practicing

Logistician, or Certified Transport Planner

programs should contact David Doherty at ceo@

sclaa.com.au.

Meet Elsie Hooi (Communications Portfolio SCLAA Victoria

Committee)

Elsie Hooi is a Lecturer in Transport,

Warehousing and Distribution Management

within the Supply Chain Degree stream at RMIT

University.

Elsie:

Came from Singapore to Melbourne seven •

years ago.

Lectures at RMIT in Victoria, and offshore in •

Singapore, Hong Kong and Shanghai.

Enjoys the diverse cultures and business •

environments when teaching offshore.

Strives to encourage students to develop •

creative and innovative solutions within

their particular local environments and

constraints.

Seeks to make a real contribution to •

development of people and communities.

Believes Governments must focus on, and •

boost investment in infrastructure and

intermodalism around the world.

Is frustrated by lack of progress in improving •

and nurturing communities.

Joined the SCLAA to gain access to •

professional networks and networking in a

learning environment.

Recommends that students and young •

people in the industry join the SCLAA to

get unfettered access to professionals and

practitioners for development purposes and

to start building learning networks.

Will now be coordinating the Victorian •

Newsletter and seeks ongoing input from all

Members. Contact elsie@rmit.edu.au

Salary Survey Report Copies of the excellent 2007 Supply Chain

and Logistics Salary Survey Report are now

available to all Members. The Report is

published by Logistics Recruitment Solutions

and is made available as a Member Service

through our partnership with LRS.

Request a copy by email from ceo@sclaa.

com.au

August 2007 Logistics | 10www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

L iam Stitt, Queensland President of the

SCLAA will be providing a series of

articles in the next few issues to start

debate about ‘What is Benchmarking?’.

This is the first in his series of articles.

The role of Benchmarking in organisational transformation

Introduction: Most “companies do not know what they

do not know”. They are inwardly focussed and

typically once organisational performance

drops a reactive change program has to be

implemented so that performance is returned

to acceptable levels. This change program, in

the initial phases will not take the organisation

to any real heights of innovation, continuous

improvement or learning organisation status.

Simply it will only correct the current round of

problems and initially bring performance back

to acceptable levels.

For companies that are led by dynamic and

forward thinking managers that have the desire

to move the organisation forward into the

innovation and learning sphere, how do they

know which direction to take?

To answer this question, the organisation

will need to undergo a form of assessment

and measurement, known as transformational

benchmarking to first:

Understand the current state.•

Scan the market for leaders in the respective •

areas.

Identify what needs to be changed.•

Develop an implementation plan providing •

innovation, improvement and learning as the

platform for change.

Benchmarking can be used in a number of ways

including:

Measurement and comparison of hard •

statistical indicators (content).

Mapping and comparison of system and •

process (process).

Auditing and measurement of capabilities, •

including skills, experience and knowledge

(culture, social).

And be deployed throughout an organisation •

at all levels, addressing both internal and

external elements.

There are numerous organisational

transformational management theories that

exist, including but not limited to:

TQM and continuous improvement.•

Balance Scorecard.•

Lean manufacturing, Logistics and •

construction.

Theory of constraints.•

ISO 2000.•

Six Sigma.•

Cultural audits and climate surveys.•

Teams and individual development •

programs.

Strategic direction setting.•

Customer centric initiatives.•

Specific corporate programs.•

To cover all of the above transformational

management theories in one piece of work

would more likely resemble a PhD project, so

the focus of this study is to examine the Supply

Chain & Logistics related industries to:

Identify and document current benchmarking

approaches that deal with both internal

and external elements in terms of ‘what is

benchmarking’ by identifying process, content

and performance type benchmarking techniques,

identify what type of companies have used these

techniques and examine the results gained.

Compare and document Supply Chain

organisational benchmarking techniques that

currently exist, and attempt to discover the

origins of each technique and how it came

into being, bring each technique identified

back to a framework level and understand the

philosophy underpinning each technique and

then compare the differences of each technique

at a framework / philosophical level and

examine the differences and discuss why these

difference may exist.

Identify the effectiveness and relevance

of current approaches and discuss why such

benchmarking programs either succeed or fail,

discuss the effectiveness of each technique

and discuss why each may have succeeded

or failed and then seek to establish if any of

these techniques will lead to organisational

transformation and then identify the key

elements of transformational benchmarking.

Identify and document current benchmarking approaches:

What is benchmarking? Benchmarking reportedly has been around

since the time of the fourth century BC in China,

but gained its rightful place in modern history

when the Japanese after World War 2 worked

closely with Dr Edward Deming, an American

process improvement expert and the founder

of Total Quality Management, to study global

trends and develop their own methodology to

quality improvement. This movement was the

first major engagement of modern benchmarking

philosophies and has positioned the Japanese

as leaders in this field.

TQM as described by Deming involves a

new management paradigm of continually

improving performance and processes by

inviting the involvement of all employees

to review processes through the use of data

and facts and through the use of individual

creativity to better serve the customer. TQM

ensures that you examine the process to identify

how to produce better outcomes, therefore

understanding the content of the process and

using performance measurement to manage the

overall improvements and gains resulting in

transformation.

Braun and Lansford have developed a website

devoted to benchmarking and have researched

much of their work based on the following book

HIGH PERFORMANCE BENCHMARKING: 20

STEPS TO SUCCESS BY H. JAMES HARRINGTON

AND JAMES S. HARRINGTON. Harrington has

a wealth of experience with leading global

consulting firm Ernst & Young and utilised this

data to support the findings in his research

contained in this book.

LIAM STITT Queensland President SCLAA e qld@sclaa.com.au

What is Benchmarking?

11 | Logistics August 2007 www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

So what in essence is benchmarking? The

benchmarking exchange website provides

the following three definitions of what is

benchmarking.

Benchmarking is a tool to help you improve

your business processes. Any business process

can be benchmarked.

"Benchmarking is the process of identifying, understanding, and adapting outstanding practices from organisations anywhere in the world to help your organisation improve its performance."

"Benchmarking is a highly respected practice

in the business world. It is an activity that

looks outward to find best practice and high

performance and then measures actual business

operations against those goals."

To summarise: benchmarking is establishing

a process to follow so that through measurement

and comparison a pathway forward for

improvement can be implemented.

How then can benchmarking be used to

provide guidance on both process and content

performance improvement?

Harrington and Harrington in their book on

high performance benchmarking have identified

five types of benchmarking being:

Internal Benchmarking, the first step 1.

in measuring your own organizations

performance.

External competitive benchmarking, examine 2.

closely competitors either with or without

their knowledge.

External industry (compatible) benchmarking, 3.

working with external partners in similar

industries that are not direct competitors.

External generic (trans-industry) 4.

benchmarking, working with external

partners in dissimilar industries.

Combined internal and external 5.

benchmarking, which is a combination of

the above four methods.

Which can cover your own, your competitors

and even non-competitors products, services

and processes. The key point is that services,

products and processes can be benchmarked,

not just products. In fact, the Japanese in their

early work in benchmarking identified that the

products are best left alone, and that processes

must be the focus on any benchmarking

activity. Japanese industries also realised

that not only production processes can be

benchmarked but also innovation processes

can also be benchmarked. Trott 1998 p.20 has

identified that innovation can be a process,

something which I believe is fundamental to

transformational benchmarking.

Of equal importance is the fact that the main

thrust in actually delivering transformation is

the external focus. This external focus increases

awareness and understanding as to market

developments and if monitored pro-actively

can sometimes lead to totally new business

developments ahead of the competition.

From the five types of benchmarking

mentioned above, it is the external focus

attributes that will actually identify where

the gaps are in the internal performance, and

then hopefully provide the impetus to make the

required changes.

It should be noted though that there is no

guarantee of success in making transformational

change by conducting benchmarking as the

translation and transformation elements are

not specifically covered by benchmarking itself

other than to provide a level of focus on the

people aspects of the process and look to enable

people to be involved in the benchmarking

process, and hopefully through that process

provide the opportunity for change.

Harrington and Harrington in their book

identified that benchmarking is actually a

twenty step process involving the following:

i. Identify what to benchmark.

ii. Obtain top management support.

iii. Develop the measurement plan.

iv. Develop the data collection plan.

v. Review the plans with location experts.

vi. Characterise the benchmark item.

vii. Collect and analyse internal published

information.

viii. Select potential internal benchmark sites

ix. Collect internal original research

information.

x. Conduct internal interviews and surveys.

xi. Form an internal committee.

xii. Conduct internal site visits.

xiii. Collect external published information.

xiv. Collect external original research

information.

xv. Identify corrective actions.

xvi. Develop an implementation plan.

xvii. Gain top management approval of the

future state solution.

xviii. Implement the future state solution and

measure its impact.

xix. Maintain the benchmarking data base.

xx. Implement continuous performance

improvement.

By categorising these twenty steps into

process, content and performance elements that

may lead to a transformation we find that:

Two steps relate to content and process

benchmarking which covers the outcomes such

as service and products and the associated

business processes of how these services and

products are achieved.

Eight steps relate to content benchmarking,

focussing on the hard data and research related

material to provide insights into performance.

Ten steps relate to the transformational

elements of people, corrective actions and

implementation of the new process.

This analysis provided some interesting

observations such as:

There is a strong focus on transformational •

elements.

There is a strong focus on content and •

performance measures.

There is not a strong focus on process •

related benchmarking.

Benchmarking Partnerships, a leading

Australian benchmarking group have also

established a framework for benchmarking

and we will also examine that to identify the

core characteristics and philosophies of this

framework.

This article will be continued next issue...

What is Benchmarking? cont...

Don't miss our wrap-up from the 2007 Queensland Supply Chain & Logistics Conference in the next issue.

You are invited to attend the AIP/SCLAA Annual Charity Golf Day which will be held on Friday 28th September at North Lakes Golf Course. To find out more simply email qldmembers@sclaa.com.au

August 2007 Logistics | 12www.ferret.com.au/Logistics

SCLAAwww.sclaa.com.au

SCLAA VIC 2007 events

SCLAA QLD 2007 events

SCLAA WA 2007 events

Nationwide Events

15th

22nd 19th

28th

3rd

17th

26th

7th

23rd 4th

28th

2nd

17th

Site Visit - Goodman Fielder Murarrie

Site Visit - Australia Post

Site Visit – Smith’s Chips

Golf Day North Lakes

Best practice Purchasing & Inventory

Site Visit - Aperio Plastics

Logistics Lounge

Logistics Lounge

Annual General Meeting

Logistics Lounge

Golf Day at The Vines

Logistics Lounge

Technical Forum

2x Logistics Lounges Bells Brewery & Wheelers Hill Hotel

Knowledge Development Breakfast meeting

Site Visit

Member Networking Evenings

August

August

September

September

October

October

October

August

August

September

September

October

October

August

August

Wednesday

Wednesday

Wednesday

Friday

Wednesday

Wednesday

Friday

Tuesday

Thursday

Tuesday

Thursday

Tuesday

Wednesday

DAY DATE MONTH EVENT

QUEENSLAND

President: Liam Stitt

Secretariat: Steve Ellis

Suite 154236 HyperdomeLoganholmeQLD 4129

( 07 3343 3710( 1300 364 1606 07 3829 9730 qld@sclaa.com.au

VICTORIA

President: John Edhouse

Secretariat: Fulvia Nelson

Locked Bag 8000Kew MDCVIC 3101

( 03 9249 9621( 1300 364 1606 03 9249 9656 vic@sclaa.com.au

SOUTH AUSTRALIA

President: Mark Ingham

Secretariat: Tim McGlip

PO Box 838Kent TownSA 5071

( 1300 364 160 sa@sclaa.com.au

WESTERN AUSTRALIA

President: Steve MacPherson

Secretariat: Leith Finnie & Roger Finnie

Level 1220 St Georges TerracePerth WA 6000

( 08 9226 3451( 1300 364 1606 08 9321 9393 wa@sclaa.com.au

NEW SOUTH WALES

President: Bill Henman

PO Box 3271 Parramatta NSW 2124

( 02 8833 1404 ( 1300 364 160 6 02 8836 6370 nsw@sclaa.com.au

NATIONAL

National Executive Director: David Doherty

Secretary: Fulvia Nelson

Locked Bag 8000Kew MDC VIC 3101

( 03 9249 9621( 1300 364 1606 03 9249 9656 secretary@sclaa.com.au

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