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The logistics Industry as a whole is probably one of the worst offenders when it comes to sustainability and ‘green’ practices. The nature of the industry requires it to be heavily reliant on road transport and the image often portrayed is one of heavy polluters on the road and thoughtless practices on the ground.
However it is important to realise that given the breadth of Australia’s vast landscape trucks and transport are vital to getting things around from A to B. Furthermore, a lot has changed in this industry, with many companies cleaning up their act and becoming aware of how to do things smarter and cleaner.

At Cross Docks Australia we are trying to improve our green credentials and have gone to considerable lengths to try to make a difference in whatever way we can.

Such as:
• Using warehouse premises that require minimal artificial light and rely more on natural light and ventilation. Every fifth sheet of roofing is perspex allowing maximum light during operating hours, but with out creating heating issues in summer.
• Recycling: from the cardboard cartons that we reuse to pack our clients goods for transport, to the second-hand steel beams in our racking system. Where it can be reused or recycled we are doing it.
• For clients that require fragile packing we use wheat-pack (made from 100%biodegradable wheat dust) and discarded cardboard off cuts.
• The implementation of RF (radio frequency) picking system. Cross Docks Australia have invested in technology that has the dual benefit of increasing efficiency and reducing the amount of unnecessary paperwork.
• Any paper or cardboard that has earned retirement gets recycled by AMCOR
• Because we are not aligned with any one transport company, our clients can choose their own transport option, some of whom offer the purchase of green fleet /carbon offset options.
• We use electric forklifts rather than diesel or petrol machines.
• We have also fitted out our offices with second hand office furniture despite the fact that we could have bought brand new, timber office furniture most of which is shipped in from Asia, for the same price!
• Cross Docks Australia will continue to consider the environmental impact of the major decisions we make, we are also open too suggestions from our clients.

Cross Docks Australia are proud to have strong partnerships with environmentally aware clients like 3fish and Braemac energy. Braemac Energy are a 100% Australian owned company, showcasing a wide range of clean, green Solar and Wind energy solutions for households, businesses and government (www.braemacenergy.com.au/). 3fish describe a simple philosophy of “Do the Right Thing”. They take the full life cycle of each product they are involved in seriously. There is a strong focus on using renewable, organic and recycled materials and products that have been ethically sourced.

This video will be handy for those of you who run your own warehouse. Pallets are used every day and are shipped all around te world but they are often ignored as an asset. Managing Director Shan Manickam explains it is important to keep track of where they are and where they are going so you are not letting money fly out the door.

1. Provide a Purchase Order Number.
   As simple as it sounds you need to ensure that you provide a Purchase Order (PO) Number when ordering stock. In doing so you will achieve the following:
   You will be able to cross reference your shipment with what you ordered. Your supplier should reference the PO number on your invoice and on the Packing List they supply with the goods.
   It will ensure that your suppliers will only send you stock when you order it, not when they feel like sending it to you.
   It will provide you with a reference point if you need to recall the stock some reason at some point in time in the future. Product recall is an arduous task and compounded by poor referencing and record keeping.
2. Uniform Naming Methodology.
   It is vital especially when using multiple suppliers that they all use the same naming methodology. For example if you use a blend of alpha and numeric digits in your product codes, then ensure that all your suppliers provide the same alpha and numeric naming structure in your product codes.
3. Insist that your cartons are clearly marked.
   Insist that your company logo is printed on the outside of each carton. This will assist in preventing your cartons getting mixed up during loading and unloading containers, will ensure that your products stand out against your competitors and your logo looks good.
4. Up to date inventory levels.
   This must be your primary focus all the time. Regardless of whether you are maintaining your inventory levels or a Third Party is maintaining your inventory levels, ensure that they are accurate. Accurate inventory levels will allow you to sell your stock accurately, order stock accurately and ultimately understand the value that your business has reinvested into your Balance Sheet.
5. Ensure that you have a Quality Assurance (QA) process for new stock.
   Supplying quality products must be one of the instilled principles of your business, and by employing a sound QA process will assist you in achieving this. Replenishment stock from existing suppliers should not require QA processing, however new stock lines must be QA processed. If you are using an agent to help source your stock then make it one of their responsibilities. Product quality will never be perfect so ensure that you have the right measures in place to intercept the product before it gets to your customers.
6. Minimise your Suppliers.
   There is no need to put all your eggs into one basket, but at the same time don’t spread yourself too thin with multiple suppliers. The advantages are as follows:
   ?You should receive consistency in service when consistently purchasing from a small group of suppliers
   ?Over time you should receive more favourable payment terms from your suppliers. As your purchasing increases with them ask them to reward you with favourable payment terms.
   ?Your purchasing power will also increase. Increased purchasing power will enable you to negotiate more competitive pricing which should allow you to be more competitive in your market place
   ?You will minimise your risk when it comes to your suppliers replicating your intellectual property and selling it to one of your competitors.
7. Reconcile the PO against the Packing List (PL).
   Remember that what you order may not be what you receive. Request that your supplier send you a copy of the PL when the goods are despatched. That way you will have at least a couple of week’s to reconcile the PO against the PL. The benefit of doing so is that it will allow you to re order stock as soon as possible if you need to do so.
8. Reconcile the physical stock against the Packing List.
   It is vital that you reconcile the PL with the physical stock. There should be ZERO tolerance when conducting this reconciliation. The PL is a representation of what was physically packed on your behalf. If they do not match then there is a strong chance that there has been theft somewhere between the stock being despatched from the factory and you receiving it.
9. Provide Feedback.
   It doesn’t matter if it is positive or negative, but ensure that you supply it. Your quality suppliers will value your feedback and more importantly they will use it to improve their service. Benchmark the standards that you expect from a delivery and then share it with your suppliers so that they know what your expectations are.
10. Pay your Suppliers on time.
    This might seem like an obvious one, but it is not very well adhered to. If you pay your suppliers within your agreed payment terms then they will supply to you on time as well. Importantly though if you pay on time and you have to process an emergency order then if your account is up to date, then will not have no problems filling your urgent order.

If you would like to clarify any of the points above, or would like to find out how Cross Docks Australia can assist in improving your ordering processes then please feel free to contact us at info@crossdocks.com.au or hit us up on Skout.

Who’s not busy now days? We are all busy, and as things get tougher we seem to get busier. But here’s the thing: Are we being truthful with ourselves? Is our time being spent doing things that is actively making money for our businesses or are we spending time doing things that would be done more efficiently by someone else?

Try this simple exercise:

1. List the 5-10 activities that occupy your time on any average day. List everything from answer calls, deal with suppliers, manage staff etc.
2. Asign the average time that you spend on each activity
3. Add up the total number of hours in your average day
4. Add up the hours in each day that you spend generating new sales and growing your business.
5. Divide point 4 above by point 3 above.

If the answer you get is less than 0.70 or 70%, then guess what? You are not spending enough time growing your business and you are spending too much time on task that should be done by someone else in your organisation.

Now try another simple activity. Use the list that you generated in point 1 above and then work out which non revenue generating activities can be performed by someone else in your organisation. If you don’t have the right people in your organisation that can perform these tasks then contract them out to a specialist, like an accountant, book keeper, or an IT specialist.

Finally, and here’s the great bit. Add up all of the hours that you would have created by delegating these tasks to the people who can most likely perform them more effeciently than you. Divide the current number of hours that you were dedicating to growing your business by the number of hours that you have created. For example if you used to only spend 2 hours per day growing your business and you just created another 4 hours a day, then 2/4 = 2. This will be factor by which you will be able to increase your sales based on your past track history of hours converted to sales, i.e. 200% in this instance!!!

Sounds easy? Well it is really. The hardest thing is convincing yourself that there are often other people out there that can do these non revenue generating tasks better than you. Yes that’s right there are. And the beauty about that is once you recognise this then you will be able to grow your business.

A good friend of mine Joe Dorfman taught me this valuable lesson a number of years ago and I haven’t looked back. Here are his details if you are interested:

http://www.thepoweroffocus.com.au/

Managing your stock (both physically and on a system) should be at the fore front of your priorities all the time. We have found in the past that using MYOB works very well and it can give you history and break down by Stock Keeping Unit (SKU). The real key is to be diligent with every transaction that you make (even if it is sending a sample or a gift to one of your friends). The more accurate that you are with each transaction then the more accurate your inventory will be when you are re ordering stock or more importantly selling.

Another good idea is either do a stock take once per month (quite time consuming), or pick 5 – 10 different products per month and do them instead (saves time). This way you will know where you are at.

For more tips on this arduous task visit our blog where we have already addressed this issue.

I wrote a post recently about how a Third Party Logistics provider (3PL) can help a business grow, and I received some comments by other Skout members who said they were in that position themselves, i.e. their business was booming after the Kids InStyle trade fair and taking orders almost to the point of bust and had they known about logistics service providers they could have really capitalized on the success of the trade fair. This got me thinking that many business owners looking to outsource would not really know what to look for and expect in a 3PL. Therefore this post should cover all the things you should look for in a 3PL to make sure you get an arrangement that is right for you.

Size. This is the most important one and there are many things to considern when it comes to the size of business you are partnering with. If you are a wholesaler selling to a relatively small number of stores then you want to find a 3PL that will be able to give you their full attention and ensure your business is prioritised. Many of the major 3PLs deal with some of the largest wholesalers and distributors in the country and as a smaller boutique company, if you enter into an arrangement with them you may find yourself simply falling to the bottom of their priority list.

Growth. You need to select your 3PL with a view for the future in mind. As a designer wholesaler you may start out only needing someone who can manage your small number of shipments but what happens when your business start to expand and or you release a new product that is wildly successful? Is your 3PL going to be able to handle that variation in size. Look for a 3PL who has a system in place to give you their full attention and service whilst allowing your business to grow over time and retain the same service.

Relationship. The relationship between your business and your chosen 3PL is very important to making it work. It should be an alliance between two businesses who want the same thing: the success of your business. It should not be a situation of two opposing forces contantly battling to get the results you want. When you are shopping around for a 3PL make sure you go meet the company directors and get a feel for the way they treat your business. You want to go for a provider shows that the focus is YOU. Someone who is interested in making your life easier and making sure that you are satisfied at every step of the way. Be sure that when you are looking for a 3PL, you avoid someone who just treats you as another faceless client instead of a valuable business partner.

Technology. When you are looking for a 3PL, many companies trying to get your business will throw lots of techno-babble at you in the hope that you be impressed. But really there are only a few things in your 3PLs tech systems that you need to look for to make sure your service is going to be hassle free. Firstly a good 3PL needs to have a system with open flow of information so that you are not left in the dark about what happen to your orders. You should have constant access to the data so you can track them from the time you pass them on to the 3PL until the time they reach the shops. Look for an energy and time efficient 3PL that uses radio-frequency scanning devices in their picking instead of ticking off a traditional paper pickslip. It means far less mistakes are made for one, but also it dramatically reduces the amount of paper wastage in the picking process. It is only a little thing but it separates the good from the best.

Experience. This is something that is hard to determine but generally you can see what you are going to get from a 3PL by looking at the experience in dealing with other companies like yours. Look for a 3PL that services other businessess that are roughly the same size as yours. Or even better a company that is familiar with businesses in your industry whether that’s kids clothing, toys, wine or whatever it may be. Find out who their current clients are and give them a call. They will let you know if the service they are getting is as good as they expected.

So you’ve just come back from the Kids inStyle Trade Fair and taken a squillion orders from retailers who loved your product. Its great to have product that is selling really well and growing in popularity! But are your facilities equipped to handle this growth? Will you have to start turning down retailers who want to stock you product because you simply can’t manage all the orders? Well, there’s a solution…

While it may seem obvious, it is actually unknown to many new businesses that there are companies that can handle your stock and dispatch your orders for you. They are called Third Party Logistics providers (3PLs) and they are designed to allow your business to grow and not be limited by the physical pressures of increased retail demand.

When you partner with a Third Party Logistics provider you are enlisting the service of organisation of professionals whose core activity is providing the best possible means to get your product to market. This gives you more time to focus on your key priority of developing, sourcing and selling your product.

One of the main concerns of outsourcing is that business feel they will lose control of their stock if they are not managing it themselves. In reality this is not the case. When you are managing your own stock any mistakes, late deliveries or other problems are ultimately your own responsibility. When your outsource, your 3PL has a contractual obligation to have the orders correctly picked and dispatched out the door on time. If your 3PL has an advanced order management system, you can see at any point in time the status of your order. In this way you have more control than you ever did before.
Another

Another thing that can distract you from your core business is issue of safety in your warehouse. Meeting OH&S legislative requirements can be a cumbersome process. A 3PL will always meet legislative requirements, from holding regular OH&S Committee meetings to conducting quarterly Site Safety & Hazard Inspections ensuring a hazard-free process.

It seems like a big step and one that you may be a little hesitant to make. And it is so important that you choose a company that is able to give your business the best service. But it is well worth it when you find a company that fits your needs and suddenly you discover how much time and energy you put into something a menial as getting your stock out the door. Put that time back into your own life.

For a comprehensive list of many Occupational Health and Safety related links visit http://www.ohs.com.au/Sites/
This site covers virtually every aspect of staying informed, knowing your OH&S rights and responsibilities and other tips to prevent workplace accidents. It covers areas of legislation, working with dangerous equipment, identifies potential hazards and offers solutions to OH&S concerns.

Here are links to all the relevent Occupational Health and Safety bodies for each state. The sites provide further information regarding your responsibilities as an employer, your rights as an employee, and ways that you can improve your OH&S practices.

Victoria

WorkSafe Victoria
1800 136 089
www.worksafe.vic.gov.au

Australian Capital Territory

Office of Regulatory Services ACT WorkCover
(02) 6205 0200
www.workcover.act.gov.au

New South Wales

WorkCover NSW
13 10 50
www.workcover.nsw.gov.au

Northern Territory

NT WorkSafe
1800 019 115
www.worksafe.nt.gov.au

Queensland

Workplace Health and Safety Queensland, Department of Employment and Industrial Relations
1300 369 915
www.deir.qld.gov.au/workplace/

South Australia

SafeWork SA
1300 365 255
www.safework.sa.gov.au

Tasmania

WorkCover Tasmania
1300 366 322
www.workcover.tas.gov.au

Western Australia

WorkSafe WA
1300 307 877
www.worksafe.wa.gov.au

Following on from 7 Benefits of Maintaining an Accurate Inventory, Managing Director Shan Manickam talks us through 7 ways in which businesses can improve their work practices and maintain high standards of work to ensure that the stocktake process is accurate and efficient.