Pictured - United Kingdom Warehousing Association

6 Association NewsGOLF SOCIETYGolferson courseUKWA and the BritishAssociation of Removers(BAR) have announced thedate of this year’sUKWA/BAR Golf Day.Thursday 6th Septemberwill see golfers competingfor the UKWA/BAR Trophyas well as Team andIndividual Trophies at thePortal Golf & Country Clubat Tarporley, Cheshire.Entry forms are avaiableon the UKWA website,but for further informationor to register yourinterest in being part ofthe team that representsUKWA on the day, pleasecall Jacquie Corderoy on0207 836 5522 or email:jcorderoy@ukwa.org.ukContinued from page 4“I am delighted that SfLis attempting to engagewith employers in the sectoras it strives to developthe skills base of theindustry. I believe thatUKWA members areuniquely placed to helpshape greater and moremeaningful output fromour Sector Skills Council.“We have been criticalof SfL in the past for theirapparent failure toengage with employers. Itis only by working withthe companies that areinvolved in moving, handlingand storing goods,that SfL will be able totackle the skills and productivityneeds of employersin the logistics andUKWA BOARDNew faces on boardAt the ballot held at this year’s AGM, members electedtwo new faces to serve on the UKWA managementboard. David Scott from Torque and Keith Forster fromBoughey Distribution have joined the board as representativesof the D-F membership category.“We are fortunate to have such a wealth of talent atour disposal. David and Keith will be excellent additionsto our board,” commented Roger Williams, CEOof UKWA.Meanwhile Dales Stokes (MDA) and Joanne Dolan(Paul Ponsonby Ltd) were re-elected to represent the A-C category.A full report of UKWA chief executive officer, RogerWilliams’ statement to the AGM starts on page 30 ofthis issue of Warehouse.UKWA employs a number of marketing toolsdesigned to highlight the services our membersoffer to potential customers. But we’dlike to know if there is more we could do onbehalf of our members - particularly in nichemarkets? If anyone would like to put forwardsuggestions they can do so via email torwilliams@ukwa.org.uk.Members urged to drive UK skills programmesupply chain sector.”The first task for thewarehousing craft groupwill be to identify the preciseoccupations that theskills group should focuson, for example: pickingoperatives, warehousemanagers, etc. The groupwill then broadly defineany skills shortages orgaps that exist now - andhow that might change inseveral years - and discussthe adequacies ofexisting qualifications andprogrammes.Competencies for eachindividual job will beidentified. For example, aGoods-In clerk mighthave 10 essential competences,which will becomethe effective ‘gold standard’.Eventually there willbe a set of standardgeneric competencesacross all of the warehousingfunctions that aredetermined by real operators,articulated andBurning issueUKWA board memberand managing direcotrof ElddisTransport, Nigel Cook,recentlycarriedtheOlympictorchthroughhis hometown ofConsett,CountyDurham.Nigel waschosenfor thehonour following histireless fundraisingefforts on behalf of hislocal hospice -Willowburn. Last yearhe raised over£20,000 by running 10half marathons in 10different countries.endorsed by UKWA andaccredited by SfL as theindustry gold standard,which companies canthen sign up to.Skills for Logistics’,Mick Jackson, said: “Thisplan of action will providethe sector with a veryclear indication of what‘good’ looks like and aroute to achieve that standard.This in turn willgreatly benefit the decision-makingprocess forskills development.”It is anticipated thatUKWA’s WOCS Groupwill meet twice a year andanyone interested in takingpart in the workingsof the Group should contactRoger Williams on(tel) 0207 836 5522.August 2012www.ukwa.org.uk

8 Business NewsINBRIEFPositiveresponse91 per cent of thosepolled in a recentsurvey undertaken bystorage equipmentspecialist, Link 51,are expecting toincrease warehousecapacity by 10 percent or more over thenext year The studywas carried out‘amongst senior decisionmakers involvedin warehousing andstorage’ across theUK.Polish contractFollowing its creationearlier this year as ajoint venturebetween UK-basedKeswick Enterprisesand Vector GlobalLogistics of Poland,Keswick Vector SCMPolska Sp. z.o.o, haswon a three-yearlogistics contract withEsotiq & HendersonSA – the country'sleading specialist lingerieand underwearretail chain. The contractwill be based atthe joint venture's6,000 sq metre (distributioncentre atPrologis Park inGdansk, Poland.MATERIALS HANDLINGForklift users look toshort term rental dealsTo cope with seasonalsupply chain throughputspikes, companies havealways looked to supplementtheir lift truck fleetsby drafting in extra vehicleson short term rentalcontracts.But, with more andmore businesses seekingto meet their materialshandling needs withoutmaking a long term financialcommitment, the UKmarket for short termrental trucks is growingsignificantly.In fact, according tostatistics recently issued byinternational marketresearch company,RedShift, some 10 percent of the forklift truckscurrently operating acrossEurope have been suppliedon a short termrental contract.Neil Warren,Jungheinrich UK Ltd'sUsed Equipment andShort Term Rental Director,believes that the growth inthe market for short termtruck rental represents atrend among truck usersand may soon rival longterm contract rental andoutright truck purchase asa user’s preferred methodof truck acquisition.“The upturn in thenumber of trucks enteringthe market on short termdeals is being driven inpart by the harsh economicsituation,” he says.ABOVE: Neil Warren“But, paradoxically, asthe economy emergesfrom the doldrums, Ibelieve more businesseswill be tempted by shortterm rental options toacquire the materials handlingequipment neededto manage new contractsor cope with increasedsupply chain throughput.”While short term contractshave traditionallybeen perceived as beingmore expensive thanmore traditional truckacquisition methods, thereis a strong economic andstrategic business case fortaking the short termoption, as Neil Warrenexplains.“Whereas, traditionallylift truck dealers haveviewed rental fleets asemergency cover toreplace malfunctioningtrucks that cannot berepaired quickly or as aquick fix solution forestablished customers whoneed to cope with seasonalpeaks, many lift truckusers now see short termforklift rental as somethingmore strategic – ratherthan a stop-gap measure.As a result, short termrental has become part ofthe business model formany truck users, ” saysNeil Warren.He continues: “A growingpart of our business isfrom minimal term contracts– which give excellentpricing options andprovide full flexibility.When compared to standardfixed term rentalcontracts of, say, fiveyears, they representexcellent value for money.In particular, we haveseen a notable uptake inthis type of contract in themanufacturing sector –where, thanks to volatileeconomy, flexibility is key.To cope with the upturnin demand for short termrental trucks, Jungheinrichhas invested over £5 millionin its short term rentalfleet over the past 12months.The company’s UK fleetis now in excess of 2000units and includes modelsfrom Jungheinrich’s fullrange of warehouse andcounterbalanced trucks aswell as rough terrain vehiclessupplied by Manitou.August 2012www.ukwa.org.uk

10 Business NewsINBRIEFHeathrowspec buildlaska Group, a UKproperty developmentand consultancycompany, has submittedplans for a46,608 sq ft warehousedevelopmenton a 2.09 acre site atColnbrook, close toHeathrow airportand Junction 14 ofthe M25.The site, which isexpected to be completein summer2013, is marketed byJones Lang LaSallewho are seeking apre let/pre sale.CEVA’s CrownCEVA Logistics hassigned a five-and-ahalf-yearcontract tomanage CrownPaints' trade warehouseoperation,nationwide distributionof retail andtrade product andinter-site and bulktransport movements.CEVA hasworked with CrownPaints for 26 yearsand this latest extensionto the partnership,worth €50 million,includes theopening of a €1.5million Crown Paintstrade warehouseoperation in Hullwhere over 70 jobswill be created byCEVA.ACQUISITIONWMS specialist sold for £5.4mSupply chain softwarefirm Access has boughtWest Yorkshire-basedDelta Software, awarehouse managementspecialist, in a £5.4mdeal.Delta Software willbecome a division ofAccess under a newAccess Delta brand, supportedby a combinedpool of sales, marketing,and product developmentresources. This willinvolve Delta’s customerssuch as Eddie Stobart,Life Fitness, and Toyota'sTsusho business.Chris Bayne, chiefexecutive of Access, said:“Acquiring Delta enablesus to provide a completewarehouse managementsolution to our customersthat fully integrates withour financial and supplychain management soft-CONTRACT NEWSThe UK baby specialist,Kiddicare, has chosenWincanton to providelogistics services as itgrows from a predominantlyonline retailer to amultichannel operation.Kiddicare, part of theMorrisons group, presentlygenerates 85 per centof revenue from its websiteand mobile platforms.Its flagship Peterboroughsuper store accounts forthe remaining 15 per centof sales.Wincanton has wonthe contract to managethe fulfilment of a numberware. This creates a compellingproposition forcustomers who are lookingfor single-sourced ERPsolutions with warehousemanagement capabilities,or a solid standalonewarehouse managementsystem.”Lance Bennett, cofounderof DeltaSoftware, said: “By joiningAccess we’re able toshare product and marketknowledge and offer ourcustomers a wider solutionportfolio, helpingDelivering the baby gearof planned new superstores,in addition to theexisting flagship store inPeterborough, the largestnursery outlet in Europe.Wincanton will re-fit its200,000 sq ft site inDaventry,Northamptonshire toreceive, pick and packmillions of items annuallyfor the new network ofKiddicare outlets as wellas the business' onlineorders. These will continueto be dispatched directto the customer from thecompany's Peterboroughdistribution centre.them gain increased efficiencies.We havestrengthened our competitivepositioning andincreased our marketreach.”The acquisition isAccess’ fifth since a £50mmanagement buyout inMarch last year, and ispart of its strategy toinvest in, and expand itssoftware portfolio to providea complete suite ofintegrated business managementsolutionsfocussing on key markets.Warehouse gets planning consentPlanning permission has been granted for an850,000 sq ft rail connected warehouse atAshby de la Zouch. Don Morgan, director ofproperty specialists, Gazeley, said: " The sitehas been one of the more complex planningprocedures we have undertaken. We havehad to overcome a number of difficult technicalissues at a time of considerable change inthe planning process.”The first Kiddicaregoods into Daventry areexpected in July.Grant Henley,Kiddicare's OperationsDirector explainedKiddicare required anexperienced partner thatshared the company's values."We needed to find asupply chain partner whowe could trust to managea complex and rapidwarehouse start-up thatalso had the experienceand ability to meet thechallenges of a multichannelsales environment,"he said.August 2012www.ukwa.org.uk

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12 Health & Safety In Association with ASG Services Ltd - www.warehousesafety.co.ukCause forquarter ofall sick daysrevealedEXHAUST EMISSIONSThe latest LabourForce Survey, whichwas recently publishedby the Office ofNational Statistics,shows musculoskeletalproblems nowaccount for more thana quarter of all sickdays.In 2011, 131 millionworking dayswere lost to sicknesswhich is 4% lowerthan the previousyear. This fall is partof an overall downwardtrend since 2003when the number ofdays lost stood at 178million. This meansthe average numberof days lost per workeris now 4.5 a year.The Fork Lift TruckAssociation (FLTA) hasurged those who use andmaintain fork lift trucks toundertake practical andappropriate action followingthe World HealthOrganisation’s classificationof diesel exhaustfumes as carcinogenic.FLTA chief executiveDavid Ellison said: “Withso much press coverageabout the harmful effectsof diesel fumes, some forklift truck users haveexpressed concerns aboutthe safety of their fork lifttruck operations.“Fumes are associatedwith a number of fueltypes, which is why wehave created a free andstraightforward fact sheetPointing the way todiesel fume solutionson this subject.“Those who use andmaintain fork lift truckswill need a sound riskassessment and practicalsolutions to deal with anyfumes which may contaminatetheir workplace.Fact Sheet 22 – FumesAssociated with Fork LiftTruck Operations – isavailable for immediateviewing in the advice sectionof the FLTA website.www. www.forktruck.org.ukROAD SAFETYScreen time putting health at riskWorkers are putting theirmental and physical healthat risk by working morethan two hours extra eachnight on their commute andat home, a new survey forthe physios' union CSP hasfound.About two-thirds (64 percent) of the 2,010 officeworkers polled by the CSPsaid they continued workingon smartphones and otherdevices after they left theoffice, and spent an averageof two hours 18 minutesdoing so.These stints were on topof an average of six hours22 minutes in front of ascreen in the office duringtheir regular working day.The main reasons citedfor doing extra work were to'ease the pressure of theworking day' (35 per cent)and 'too much work to do'(33 per cent).CSP chair Dr HelenaJohnson said: “The resultsof this survey are a hugeconcern to physiotherapists,who see theconsequencesofpoor postureand badworkingpracticeseach day.While doinga bit of extrawork at home may seemlike a good short-term fix, ifit becomes a regular part ofyour evening routine then itcan lead to problems suchas back and neck problems,as well as stress-relatedillness. This is especiallythe case if you're usinghandheld devices and notthinking about your posture.”August 2012www.ukwa.org.uk

Health & Safety 13SUBSTANCE ABUSEUK workers are largely drug free - surveyA study by a global drugtesting firm has confirmedthe overwhelming majorityof UK workers are drugfree.However, the reportfrom Concateno, whichlooked at drug tests conductedby 856 UKemployers in industriesincluding logistics andhaulage, also suggeststhere has been anincrease in companiesdemanding testing. This isa concern to unions whichsay there are few circumstancesin which thesetests can be justified.Concateno says itsreport is based on theresults of 1.7m UK workplacedrug tests over thepast five years, and foundin the five years from2007 and 2011 positivetests increased from 2.26per cent to 3.23 per cent.However, traces of somedrugs can persist in thebody for months, so thefindings suggest only atiny fraction of the UKworkforce is taking drugswith any frequency.TUC general secretaryBrendan Barber commented:“The way to tackle thisdanger is by having properpolicies in place fordealing with drug andalcohol abuse in the workplace,rather than introducingrandom testing which isnot only a breach of a person'sright to privacy anddignity, but is also of dubiouslegality.”Mr Barber believesemployers are beingseduced by the marketingcampaigns of drug testingcompanies into seeingrandom testing as thesolution to sicknessabsence problems.He said: “This is whythe government needs toproduce clear and definitiveguidance on testing,especially on the legalissues. Drug testing techniquesare not going tohelp employers combatabsenteeism and tests cannever be a substitute for acomprehensive drugs andalcohol policy aimed at supportingstaff, and ensuringthat no-one in the workplaceis under the influenceof drink or drugs.”PIECE WORK RISKAlmost twice as manypiece rate workerssuffer from workplaceinjuries as those onstandard contracts,according to researchfrom LancasterUniversityManagement School.The researchers, writingin the Journal ofPopulation Economics,looked at the experiencesof 33,000employees acrossEurope, including theUK, and found 14.4per cent of piece rateworkers had sufferedfrom a workplaceinjury - most commonlyback and othermusculoskeletal problems- compared with7.5 per cent of nonpiecerate employees.A unique range of products and services to keep your warehouse staff safe!GuardrailsHandrailsArmcoDurable linesFROM £4.00per metreFROM £85.00per metre£39.95per metreINTERNAL FROM£49.00/metreEXTERNAL FROM£62.00/metrePrices correct at time of going to press. Guardrail, handrail and armco prices subject to delivery and installation charge.YardmarkingFROM £1.40per metreWalkwaysFROM £7.00per m 2Call now 01925 710923 or Click www.warehousesafety.co.ukASG Services Ltd, Unit 8, Easter Court, Warrington WA5 7ZB. Tel: 01925 710 923 Fax: 01925 712 966 Email: info@asgservices.co.ukwww.ukwa.org.uk August 2012

14 Information TechnologyInformed choiceWhen choosing a warehouse management system warehouse operators should know what internal andexternal factors affect their operations and what their specific workflow and optimisation requirementsare, as this will have a direct impact on the ROI, says Gursh Atwal of AEB (International) LtdChoosing a warehouse managementsystem (WMS) can be a daunting task.What should warehouse operatorsconsider before signing on the dotted line?To begin with, they should know what internaland external factors affect their warehouseoperations and what their specificworkflow and optimisation requirements are.This will have a direct impact on the returnon investment.While implementing a WMS can lead tosubstantial savings on manpower, it’s notsimply about headcount reduction, but aboutincreasing productivity with the same numberof people working more efficiently. This isbecause integrated warehouse solutionsimprove visibility, e.g. on current work load,peak phases, possible bottlenecks and goodsin transit, allowing both management andwarehouse staff to focus on their core tasks.Or, to put it differently: rather than the stockcontrolling the workforce, the workforce iscontrolling the stock.The right software should provide completevisibility of inventory levels in the warehouseand of goods in transit. Full transparencyof incoming and outgoing ordersenables companies to consolidate and timetheir transports and reduce inventory levels,keeping only the minimum amount requiredto respond to emergencies. A good WMSpromptly notifies suppliers and carriers wheninventory levels are close to falling below theminimum requirement, facilitating a continuousflow of goods and saving money.Warehouse operators should also look forend-to-end traceability of order items, particularlyin the food, pharmaceuticals andchemicals sectors, where product recalls canquickly turn into PR disasters. This can beprevented by having an audit trail thatshows, for example, who has logged on tothe system, where exactly they were insidethe warehouse, what they were doing, when,and why. This will also help to meet a company’skey performance indicators.Another crucial requirement is system integrationcapability: A WMS should integratesmoothly into a company’s existing IT environmentand communicate with both internaloperations and systems (e.g. procurement,customs, shipping and sales) and externalparties (e.g. suppliers, service providers andcarriers), leading to transparency and efficientwork flows – ideally in real-time. Thesoftware should have a modular architecturethat provides the functionalities required atthe time, with scalability, i.e. the option ofexpanding as a company’s requirementsgrow. This includes integration of transportas well as global trade management systems,facilitating comprehensive logistics executionas well as regulatory compliance withcustoms and global trade procedures.Which solution is right depends on the circumstancesand requirements of the companyusing it, making it difficult to reach any ‘onesize-fits-all’conclusions. That’s why it’s all themore important that the solution provider offersthe right portfolio, experience, and consultativeapproach to guide through the decision process.Ideally they should become a proactive partner,providing an outside view and asking questionsthat assist in-house teams to designimproved work flows and implement a warehousesystem accordingly.Warehouse management systems canhave a staggering impact on improving supplychain dynamics and performance. Anintegrated solution will help companies tobecome more efficient, increase delivery performance,streamline workflows, lower inventorycosts and gain a competitive advantage.Logistics experts looking to make the most oftheir current WMS, implement a new solution oreven introduce a WMS for the very first time arewell advised to carefully analyse their detailedrequirements and compare available providersand system options to ensure the new solutionsupports all their goals.August 2012www.ukwa.org.uk

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16 Case StudySSI Schaefer modifies existing pallet racking installation to include live storage to support the continuedlogistics and service improvements at MACO Door & Window Hardware (UK) Ltd.MACO Go LiveMACO, leading manufacturers ofdoor and window hardware, houseover £2 million worth of dedicatedstock within its high-tech, high-bay warehouseunit in Sittingbourne, Kent, designedand installed by SSI Schaefer in 2000.Having previously worked with SSI Schaeferto supply its warehouse complete withPR600 pallet racking, MACO were confidentin calling Schaefer back in.Originally installed for selling bulk quantitiesto their customer base, MACO is drivingchange to provide customer oriented,service focussed supply, offering flexibility toa larger number of customers. Requiring ahigher density storage system for boxpicked items (hardware for windows anddoors), previously picked by the pallet, arevised operation was needed to fulfil theorders. Following a trial of MACO’s productsat SSI Schaefer’s demo room inAndover, KDR Live Storage was chosen asthe preferred solution.KDR is a versatile live storage shelvingsystem – secure and stable upright framescombined with reinforcing cross beamsform a ‘racking frame’ to house entire flowbed units. The flow beds can be modifiedquickly and without screws using adjustablehooks.In this instance, the KDR flow beds wereeasily incorporated into the existing palletracking system allowing the previousground floor bulk pallet locations to beused as push back storage. The number ofground floor manual picking locations hasincreased with a greater depth of stock foreach. Full pallet locations are still maintainedat higher levels.Kevin Whiting, Managing Director, andMACO UK, said: “Having used SSI Schaeferto supply the original pallet racking, wewere confident of their known expertise inthis area. We urgently needed a solutionthat continued to cater for our bulk pickorders whilst managing our smaller ordersefficiently – the KDR system, attacheddirectly to the pallet racking allows us toeffectively pick and pack one or two boxesonly from a particular storage locationwithout having to enter the bulk storagehigh bay area.”www.ssi-schaefer.co.ukAugust 2012www.ukwa.org.uk

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18 ViewpointWarehousing:the heart ofany supply chainThe warehousing operation within most businesses can be a key factor in either the success or failure ofthe supply chain, says Gideon HillmanGideon HillmanFCILT FCMI hasover 20 yearsEuropeanSupply Chain,Logistics andMaterialsHandling industryexperiencewith both manufacturersandthird partylogisticsproviders. HeestablishedGideon HillmanConsulting in2004 and sincethen has continuallydevelopedthe business(with his codirectorsandconsultantteam) to be oneof the leadingindependentSupply Chainand LogisticsConsultancies inthe UK.All too often businesses, from SMEs tomajor corporations, forget the importanceof their warehouse operationsas a critical part of the supply chain. Thewarehouse is often taken for granted andneglected in terms of investment and considerationwithin the overall supply chainstrategy. The simple truth however, is thatthe warehousing operation within mostbusinesses can be a key factor in either thesuccess or failure of the supply chain.Quickly think out everything within the supplychain that impacts the warehouse operation,or that the warehouse operation hasan impact on, and it will soon becomeapparent how important it is.Consider the analogy that the warehousein the supply chain is much like the heart inthe human body.The heart is just a pump, a complex andimportant one, yes, but still just a pump. Itreceives oxygen depleted blood from thebody (raw material suppliers), pumps it outto the lungs (processing/production plant)and distributes oxygenated blood (finishedgoods) received from the lungs (processing/productionplant) throughout the rest ofthe body - much like the warehouse receivingand distributing product from andthroughout the supply chain.Everyone knows that the heart is a vitalorgan; after all it pumps approximately9,000 litres of blood around the body perday. However, as with all pumps it canbecome clogged, break down and needrepair. This is why it is critical that we knowhow the heart works - as what is good orbad for it can significantly impact the riskfor failure.So in this analogy of warehouse andheart, why on so many occasions is so littletime spent looking after either, usually untilit is too late?The answer is that the warehouse (heart)within the supply chain (body) is seen as afunctional necessity that has to service theneeds of the rest of the departments withinthe business (organs), whereas its ownneeds to operate properly are not consideredas important and are often overlooked.The reality is that the warehouse needsinvestment in equipment, processes, systemsand resource (much like the heartrequiring an independent supply of oxygenand nutrients) and a strategy to ensure thishappens as other parts of the businesschange needs to be put in place.Cutting the warehouse investment andexpenditure budget as a means of cost cuttingto increase business efficiency is a falseeconomy which is repeated year after year.August 2012www.ukwa.org.uk

Viewpoint 19I am frequently told when visiting companiesthat to date the warehouse has notbeen a priority for them and that they haveinvested in all parts of the business exceptthe warehouse, which is no longer operatingefficiently nor meeting the needs of thebusiness. On further inspection that samewarehouse will probably hold too muchinventory (including obsolete stock), will nothave a fully functional WarehouseManagement System (WMS), will haveeither out of date or no Standard OperatingProcedures (SOPs), will have an outdatedlayout and more than likely have outdatedhandling equipment.These issues are a result of other parts ofthe business having investment and revisedstrategy to improve products, systems andoperations without giving any thought to theimpact on the warehouse, other than that itwill have to cope with whatever is needed.Remember; think of everything within thesupply chain that impacts the warehouseoperation, or that the warehouse operationhas an impact on. For example; procurementstrategy will have a direct impact oninventory holding (and therefore spacerequirements) and sometimes even thelocation of the warehouse; new productintroduction will directly impact the type ofinventory and could also directly impact thewarehouse processes, layout, equipmentand handling requirements; sales and marketingcampaigns create seasonal peaksand directly impact the flow of product andtherefore the resource requirementsthroughout the warehouse; and the mostcommon of all being IT strategy to implementa new ERP system, which has limitedor no WMS functionality and simply has astock level function. Any of these examplescan have a negative effect on warehouseperformance and consequently a direct negativeimpact on order fulfilment and customerservice levels being achieved.The warehouse operations need to have visibility ofthe whole business and be part of the overall andon-going logistics and supply chain strategy, withcause and effect being identified with each changewithin the supply chainThe warehouse operations need to have visibilityof the whole business and be part of theoverall and on-going logistics and supply chainstrategy, with cause and effect being identifiedwith each change within the supply chain.However there is little or no point in integratingan out of date or inappropriate warehouseoperation into the business strategy.Continued on page 21www.ukwa.org.uk August 2012

Viewpoint 21Continued from page 19The starting point is to optimise yourexisting warehouse operations to meetthe current and future needs of the business,in line with your growth projections.The key areas that need to havean established strategy are an appropriatewarehouse and inventory managementtechnique (to optimise workflowand costs); optimised target inventory(holding cost vs ordering cost vs service);optimised warehouse design/stores layout,handling practices and workflows;tactical stock location(s) and pickingstrategy; appropriate manual and/orautomated Materials Handling Systems;a clear WMS operational requirementspecification; a performance measurementstrategy(and/or tool), toidentify activitycosts within thewarehouse andcustomer serviceperformance.This maymake you thinkthat simply outsourcingyourwarehouse toone of the manythird partyproviders wouldbe an easieroption to haveas your ‘instant’optimisationstrategy.However, this is not the right approach ifyou do not understand your currentwarehouse operations and thereforewarehouse requirements in detail.(Would you consider having an artificialheart before you were aware of all thefacts and the options available to you?).To outsource you must have a clearunderstanding of exactly what you areoutsourcing, how to measure the performanceof your provider and how thecosts of outsourcing compare to thecosts of running your own optimisedwarehouse. I am a keen advocate ofoutsourcing many warehouse and logisticsoperations and frequently do so forcompanies across the UK and Europewhen it is appropriate and there is aclear understanding of the businessneeds with a clear strategy.To develop a good warehouse strategy(whether in-house or outsourced) youwill need to review your current operationand understand the type of operationyou will need in the future as thebusiness changes. This will include a fullreview of the following areas; the interface/interactionbetween warehousingand other operations/departments;product flows and volumes at SKU orfamily level; seasonal fluctuations foreach product group; increased productlines and projected changes to productfamily type; product storage requirements,including number on pallets,outer packaging, cartons, SKU anditems; goods inand putaway/stowageroutines andpicking, packingand despatchprocedures;stock and inventorymanagementrequirements;inboundproduct profilesand handlingrequirements;customer serviceand deliverycommitmentsand order cut-offtimes; stock andinventory data todetermine stock levels and pick face layouts;returns handling and sortationoperation; slow moving and obsoletestock policy; stock management systemor WMS and reporting requirements;warehouse operational costs.Once you have acknowledged thatyour warehouse is at the heart of yoursupply chain, combined with an understandingof how it should work, andsubsequently implement a strategy tomaintain its health and longevity; thenthe hard work is done.Remember a business will rarely dieof a broken heart, but the longer youtake to address the cause of theheartache, the longer the negativeimpact and effects can last.www.ukwa.org.uk August 2012

22 Member Case StudyMeeting Expect’s expectationsExpectDistribution isusing a fleet offour-wheel,electric-poweredFlexi EURO VNAtrucks tomaximise spaceutilisation at itsBradford facilityEstablished in 1988 as Pennine Parcels,rebranding as Expect Distribution in2006, UKWA member Expect operatessome 250,000 sq ft of warehousing and distributionspace spread across three strategicallylocated sites in Yorkshire.The facilities – one at Halifax and two inBradford – provide storage for a diverse varietyof products ranging from medical suppliesand food stuffs to industrial equipment.The sites also act as hubs where loads aremarshaled as part of Expect’srole within the Palletline palletdistribution network. ExpectDistribution is the largest inputterof freight into the Palletlinenetwork and was the first haulierto put 1,000,000 palletsthrough the system.The facility adjacent to theM606 in the Odsal region ofBradford is the most recent ofExpect’s three sites to open. Itwas needed to cope with thegrowing demand for the company’sservices and combines54,000 sq ft of high quality warehousingspace with a very busy cross docking operationand the Companys’ Head Office functions.When planning the layout of the storagecube within the Odsal warehouse, Expectopted to maximize the available space byspecifying a narrow aisle storage systemserved by Flexi Narrow Aisle articulated forklifttrucks.“We were committed to narrow aisle storagebut because a large part of our businessinvolves cross docking it was important toselect a truck that could function efficientlyand safely in all areas of our warehousingoperation,” explains David Storrie, ExpectDistribution’s Head of warehousing.“We also needed trucks that would allowus to optimise storage density while at thesame time permit fast and efficient individualpallet accessibility - which can become aproblem with many other forklift based highdensity storage systems,” he adds.Pallet capacity at the Low Moor unit is 7,000with pallets stored six high in the racking.Following a period of close consultationbetween key personnel from Expect and thewarehouse planning team at Flexi NarrowAisle, 2.0 metres was agreed to be the optimumaisle width for the project.While Flexi trucks can pick up and turnpallets in aisles as narrow as 1.6 metreswide, in applications like Expect where highthroughputs need to be achieved and fastertravel speeds are required, the speed atwhich a truck can safely operate in the aislewaysis more important than the need to narrowthe aisleways.But, even when setting theaisles 200mm wider than theminimum wide, the Flexiswere still far more space efficientfor Expect than usingconventional moving mastreach trucks – an optionwhich the company had alsoconsidered.As this site is a multi userfacility, Expect do not havepick faces within the racking– the Flexis either pick fullpallet loads or, if part picksare required, the trucks drop a pallet from itsstorage location and deliver it to a marshalingarea where orders are made up, beforereturning the load to its location within thestore.All of the pallet put away and pickingwithin the racking is undertaken by the Flexiswhile the job of unloading and loadingincoming and departing trailers in the yard isshared between the Flexi articulated trucksand a fleet of 2.5 tonne LPG powered counterbalancedtrucks.“The Flexi’s ability to unload incomingtrailers like a counterbalance machine andserve our narrow aisle racking means wehave been able to reduce double handlingand make optimum use of our forklift fleetand labour resource,” says David Storrie.“The Flexi trucks have allowed us toreduce aisle widths to maximise storagecapacity while maintaining a safe and productiveoperation that allows fast and efficientpallet put away and retrieval cycles.”A fleet of four-wheel, electric-poweredFlexi EURO VNA trucks is in operation atPremier Point, Expect Distrbution’s Odsal site.August 2012www.ukwa.org.uk

See it. Believe it.Join us at Logistics Link North 2012Make a date in your diary for Logistics Link North taking place 9-10 Octoberin V3 Doncaster. Don’t miss this opportunity to watch suppliers demonstratethe latest products and solutions in an actual warehouse environment.1. See 100s of the latest cost-savingand productive systems, equipmentand software2. Watch products be brought to life inthe Live Demonstration Zones3. Hear first hand from end-usershow their operations have excelledand pick up highly practical tipsfrom a number of our suppliersin the comprehensive educationalprogramme4. Meet and exchange ideas withcolleagues and peers in thenetworking loungeREGISTERFREENOW www.logisticslink.co.ukBROUGHT TO YOU BY:SUPPORTED BY:CONFERENCE SPONSORED BY:

24 SurveyOutsourcinglogisticsstrategy reportThe annual, global eyefortransport logistics survey focusesspecifically on the logistics outsourcing challenges facingshippers and the strategies that they employ. The surveyalso examines the new opportunities that shippers aretaking advantage of: better pricing, better service and, bestof all, better, more trust-based relationships. A summary ofthe report’s key findings are published hereThe last 18 months have been a time ofchallenges and opportunities in the supplychain and logistics industry. On theone hand, the fallout from the recession continuesto impact all industries, yet, on theother hand, the recovery and the opportunityto gain new market share and develop new,innovative strategies and relationships hasopened up sections of the industry that werepreviously closed due to the relative stability.This Executive Summary of the findingsfrom the annual, global eyefortransport (EFT)survey focuses specifically on the logisticsoutsourcing challenges facing shippers, andthe strategies that they report are working, ornot. EFT also examine the new opportunitiesthat shippers are taking advantage of: betterpricing, better service and, best of all, better,more trust-based relationships.The responses of the supply chain andlogistics executives who participated aresophisticated, in some places surprising, andoverall paint a picture of an industry muchchanged, and still in transition. EFT statesthat its hope is that this insight will contributeto the success of the industry’s journeytowards new stability, growth and opportunity.Methodology and ApproachResponses to the survey upon which thesefindings are based were solicited from targetede-mail lists, select trade association memberships,various related industry databasesand other, industry-targeted methods. Noindividual responses were analysed, butrather all responses were consolidated.Profile of RespondentsOf the respondents to the recent EFT survey,35 percent represented companies withannual revenues above $1 billion. Of theremaining respondents, 8 percent representedcompanies with annual revenues between$500 million and $1 billion, 25 percent representedcompanies with annual revenuesbetween $50 million and $500 million, and32 percent represented companies withannual revenues below $50 million.The shipper respondents represent across-section of vertical industries, includingconsumer packaged goods/FMCG (19 percent),hi-tech/electronics/telecommunications(10 percent), food (11 percent), healthcare/pharmaceutical (10 percent), chemicals(9 percent), retail (7 percent), and automotive(7 percent). (See Figure 1.)Shipper Views of 3PLs and LogisticsOutsourcingThe survey asked 3PLs what they think shippersare looking for when choosing a new3PL. The majority of 3PLs thought lowestprice and best-quality service were the factorsof most importance to their customers, withslightly more importance being placed onlowest price than best-quality service. (SeeFigure 2.)Shippers were then asked to identify whatthey look for when choosing a new 3PL, withresults showing a marked difference. While3PLs thought most importance would beplaced on lowest price, shippers actuallyplaced most importance on best-quality service(58 percent considering it most important,as opposed to 18 percent for lowest price.See Figure 3.)Respondents representing shippers werealso asked to identify the key reasons whythey do not renew existing 3PL contracts,while respondents representing 3PLs wereasked what they thought the cause was. TheAugust 2012www.ukwa.org.uk

Survey 25most important reasons givenby shippers included cost“creep” (56 percent), poorservice (38 percent), alternative3PLs offering a better service(38 percent), hidden costs (31percent), alternative 3PLs offeringa cheaper price (28 percent),and relationship-managementissues (27 percent).The results from 3PLsshowed a marked variation,with respondents underestimatingthe importance of costcreep, and overestimating theimportance of alternative 3PLsoffering a cheaper price, relationship-managementissues,inefficient management by3PLs, unrealistic expectations of3PLs from customers, andproblems at evaluating 3PLperformance. (See Figure 4.)The survey examined thechange in bargaining strengthfor shippers, whether that bean increase due to fuel pricesand competition for contracts,or a decrease due to shortageof carriers and capacity.Opinion was divided on thematter, with 41 percent of 3PLsand 44 percent of shippersfeeling that there was anincrease in bargaining strengthfor shippers, and 59 percent of3PLs and 56 percent of shippersfeeling that there was adecrease in bargainingstrength for shippers. (SeeFigure 5.)The levels of service providedby 3PLs was examined, withshippers being asked to ratetheir performance. Resultsproved to be much more positivethan last year, with notablymore shippers rating their 3PLsas being ‘outstanding’ or‘higher than expected’, whereaslast year’s survey saw themajority of respondents ratingtheir 3PLs as merely ‘good’.(See Figure 6.)EFT also examined whethershippers have recently switchedFigure 1: Shipper Vertical IndustriesFigure 2: What 3PLs Think Shippers Look For When Choosing a New3PLFigure 3: What Shippers Look For When Choosing a New 3PLwww.ukwa.org.uk August 2012

26 SurveyFigure 4: Key Reasons Why Shippers Do Not Renew Existing 3PLContracts3PL or are currently planningto switch to a different 3PL.Results proved interesting,with 47 percent of shippershaving changed or planningto change 3PLs. Of these, 31percent were changing as aresult of service while 16 percentwere changing due tocost; however, of those notchanging 3PL, a greaternumber (34 percent) reportednot doing so because of costas compared with those notdoing so because of service(19 percent). (See Figure 7.)The survey then looked atthe likelihood of shippersincreasing their use of 3PLservices in the future. The vastmajority rated this as eitherbeing very likely (44 percent)or likely (53 percent), whereaslast year’s report saw asignificantly higher numberthinking an increase wasunlikely (21 percent). (SeeFigure 8.)The majority of shippers(58 percent) use between oneand three 3PLs, and the numberof shippers using largernumbers of 3PLs is lowerthan seen in last year’sresults. (See Figure 9.)This year’s survey saw asmaller number of shippersusing the services of 4PLs (18percent this year comparedwith 31 percent last year),though this is as likely to representa variation in therespondent pool as a genuinetrend. (See Figure 10.)Figure 5: Change in Bargaining Strength for ShippersThis article is republished with thepermission of eyefortransport.EFT is a global leader in businessintelligence for the transport,logistics and supply chain industry.EFT provides the industry withbusiness intelligence in the formof news, reports, benchmarkingdata, white papers and events.www.eft.comAugust 2012www.ukwa.org.uk

Survey 27“The levels ofservice provided by3PLs was examined,with shippersbeing asked torate theirperformance.Results provedto be muchmore positive thanlast year, withnotably more shippersrating their3PLs as being‘outstanding’ or‘higher thanexpected’,whereas last year’ssurvey saw themajority of respondentsrating their3PLs as ‘good’ ”Figure 6: 3PL PerformanceFigure 7: Recent or Planned Change of 3PLFigure 8: Change in Use of 3PL Serviceswww.ukwa.org.uk August 2012

28 SurveyFigure 9: Number of 3PLs UsedFigure 10: Use of 4PLs“Respondentsrepresentingshippers wereasked to identifythe key reasonswhy they do notrenew existing 3PLcontracts, whilerespondentsrepresenting 3PLswere asked whatthey thought thecause was. Themost importantreasons given byshippers included‘cost creep’, poorservice, alternative3PLs offering abetter service,hidden costs,alternative 3PLsoffering a cheaperprice andrelationshipmanagementissues”August 2012www.ukwa.org.uk

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30 UKWA AGM ReportUKWA’s AGM, Annual Luncheon and Awards for Warehousing ceremony is rightlyregarded as one of the key dates in the logistics industry’s calendar and thisyear’s event drew over 400 UKWA members and their guests to London’sDorchester Hotel. Here and on the following pages we reproduce chief executiveofficer Roger Williams’ review to the AGM, while the winners of the 2012 Awardsare reported on pages 36-39A good year, but...At this year’s United KingdomWarehousing Association AnnualGeneral Meeting Roger Williams,chief executive of the association, delivereda review of UKWA’s year. The followingis the text of his review.“In many respects the past 12months was another good year.But below the headline figuresand facts there are areas where we arechanging direction and speed in responseto our changing market place, and I willsay a little bit more later about an initiativewhich we believe will help our longer termgoals.I’d like to start by updating you on thecurrent Management Committee, andchanges that have taken place since we lastmet. Last year Ken Richards resigned asvice president – having served for six years,and the Board appointed Iain Speak as avice president. We have lost David Palmerof MSC to retirement. We have also lostJulia Lucas from the same category, as shehas left Hellman, but we will not lose hervaluable services as Chairman of theFinance committee, as the ManagementBoard has co opted her in that role.I am very pleased to see new bloodoffering to stand for election this year in category D-F (our larger members). I shouldalso report that the Management Board, attheir last meeting , appointed Phil Cullingof Redirack and Tony Mohan from BibbyDistribution as Vice Chairmen of theManagement Board.Our current chairman was elected for aperiod of two years and will come to theend of his office in July 2013. To date, theManagement Board has not reached a viewon his successor. It is not because of lack oftalent. It is not because there is a split viewamong the present management committee.It is the availability of talent whichposes the problem. It is not a problemunique to UKWA, but finding a satisfactorysolution has proven to be difficult.Normally by this time of the year wewould be in a position to announce the nextchairman. We can’t yet. We hope to beable to announce our recommendation in afew months time. We will continue toreview the available talent within the existingBoard,Honorary AdvisersI am very sad to report the death of one ofour longstanding and respected honoraryadvisers in December 2011. CharlesPartridge – our business rates and propertyadviser suffered a fatal heart attack. He hadnot been terribly well for some time, buthad just returned to work when the heartattack occurred. We appointed a new honoraryadviser during the year in the area of Healthand Safety. He is Mike Collier. Mike hasbeen on the Operations and Safety committeefor some time, and he will fill an importantgap on our list of specialist advisers.RecruitmentFor the last few years we have recruitedbetween 70 and 80 new companies eachyear – many of whom have been referred tous. Two years ago the Board took the viewABOVE: Ian Irvingprovided theentertainmentAugust 2012www.ukwa.org.uk

UKWA AGM Report 31Pictured at the DorchesterABOVE: Guestsawait thewinners;RIGHT: ElisabethDenby, CharlesWatt, LordBrabazon ofTara;BELOW LEFT:Mike Potts;BELOW RIIGHT:Stephen Basey-Fisher, DerekCooper, DerrickPotterwww.ukwa.org.uk August 2012

32 UKWA AGM Reportthat greater investment in recruitment wouldbring significant returns in terms of subscriptionand membership numbers. Thefact is that we have yet to see the return wehad hoped for. We have net growth, butlow net growth. Our recent recruitmenttelemarketing and mailing campaign hasproduced fresh leads, and Q1 results arepromising, but it is an area where we needto remain fully focused.Linked to the recruitment effort is retentionof existing member companies.Overall we probably have a higher churnrate that some other trade associations, butthe majority of our losses are for reasonsover which we have no control.Consolidation, ceasing trading (voluntary),ceasing trading (compulsory) are the mainreasons for the loss of full members, andassociate members tend to resign if theyare not making an impact on our marketplace. Luckily we have very few who leaveas dissatisfied customers.“We have been concerned that HMRC isaggressively targeting bonded warehouseoperators and revoking the authorisation tostore duty suspended goods ininstances where operators have beenfound not to have held goods under bondfor a relatively short period of time”Last year we conducted a customer surveyof full members which confirmed ahigh level of customer satisfaction.However, it also confirmed a continued lowlevel of awareness of many of our valueadded services, which reminded us that noteveryone visits the web site regularly, orreads every word of Warehouse or everyword of every e-newsletter we produce. Itwas a useful exercise for us and will berepeated annually in January.Sub Committees.The vital work of our standing committeescontinues. Stephen Basey-Fisher hasrecruited new members to the Operationsand Safety committee, and continues hiscampaign to edge the operational barupwards. Maintaining industry standardshas proven to be a challenge. Raising thestandards remains an elusive goal, but onethat Stephen is engaged with. It will nothappen overnight, but Stephen is embarkingon a project to introduce advisory visitsto current UKWA member companies. Theirprimary purpose will be to confirm thatUKWA standards are being maintained,and where they are not, to help and guidethe company back to the required standard.Only when we have completed this project,can we look to raising the standards, andeven then it is not envisaged that the standardswill be compulsory in the firstinstance. The process will be slow. Stephenhas taken a first bold step forward, supportedfully by the Board, and we will be reportingprogress at subsequent meetings.Our Customs and Excise honorary advisers- Alan Powell and Mike Hodge - havehad another busy and frustrating year. Youwill not be surprised to hear that the paceof change at HMRC still hovers betweendead slow and stop, and key issues havenot progressed. There are a number ofcurrent issues. We have been concernedthat HMRC is aggressively targeting bondedwarehouse operators and revoking theauthorisation to store duty suspended goodsin instances where operators have beenfound not to have held goods under bondfor a relatively short period of time.Of course, we accept that it is right thatcompanies are regularly checked to ensurethat they have processes and procedures inplace to store goods under bond in the correctand legal way, but we do not expectHMRC to add unnecessary extra burdens tobusinesses in what are already extremelytough trading conditions.A second issue concerns the widespreadAlcohol and Duty Fraud. Opinion is dividedon the question of the extent of the fraud(somewhere between £.4bn and £1+bnpa), but no one questions that the fraud istaking place. UKWA is, of course, supportiveof the HMRC’s fight against excise dutyfraud (which includes tobacco and oilsfrauds), provided the measures are proportionateand targeted. But we are very disappointedthat if the beer and wine fraud isso great, HMRC is apparently unable to targetand eliminate a finite number of knowncriminal gangs given all Customs’ powersand with a highly specialized investigativewing skilled in covert techniques.It is not as if the hundreds of vehiclesneeded to carry out the fraud are difficult totrack. But it is a fact that HMRC are unableAugust 2012www.ukwa.org.uk

UKWA AGM Report 33ABOVE:Professor AlanWaller, NickAllen;RIGHT: StephenVicker, DuncanPannell;BELOW:Pre-luncheondrinks receptionto maintain any meaningful control at ourports. The reasons why are not clear. They willtell you that their intelligence is good; they willtell you they know when the bulk of the fraud isbeing carried out; but even so, only one in 13trucks is being stopped at Dover, and very fewseizures are taking place. Some trucks may beallowed through in order to identify the criminalssupply chain, but overall their success rateis pitifully low.HMRC are now consulting industry onwhat other measures can be taken to reducethe fraud. We will be telling them (in clear,but polite terms) , they must get their acttogether. If their problems at Dover arelogistical ( i.e. search and parking space,lack of trained staff or search equipment,lack of storage space for seized goods ),then they must address those issues. Aninvestment now in developing off site facilities/ or using third party partners will payfor itself very quickly, if the Treasury was gettingthe duty it is entitled to.Additional measures which may be introduced,and which might include fiscalstamps and enhanced use of the existingEMCS. Alan Powell is co-ordinating aUKWA response, but I encourage individualcompanies to make their own representationswhere appropriate.TrainingTraining is Andy Lawrence of MaximLogistics’ particular area of interest. Lastyear I reported that there were signs ofgreater and meaningful output from ourSector Skills Council. Now I am not so sure.As I said in my column in Warehouse lastmonth, my relationship with Skills forLogistics (SfL) over the years has been ratherlike an exasperated parent, whose childrenhave consistently disappointed. And, evennow as I make my report to you, my irritationlevels are rising as I call to mind the circumstanceswhich have prevented SfL frombeing wholly successful as our industry’ssector skills council. One area where theyhave been singularly unsuccessful is inengaging with employers. It didn’t help thatthey were discouraged from engaging withtrade associations when they were first created.I never fully understood why that policywas adopted, nor why it was notchanged when it became very apparent thatthe best route to employers are throughemployers’ associations!www.ukwa.org.uk August 2012

34 UKWA AGM ReportRecent changes within SfL include thesetting up of a number of occupational craftskills groups. They are being created byemployers, for employers, with the help oftrade associations, and with the support of SfL.UKWA has been asked to set up and chair theWarehousing Occupational Craft Skills Group, or a WOCS group. Its role will be:• To determine the skills needs of thewarehousing sector• Drive skills issues• Analyse trends and policies• Support SfL in planning and prioritisingfuture skills needs• Assess skills requirements.• Provide leadership on skills issues in thesector.It sounds like an excellent opportunity foremployers to influence matters in this vitallyimportant area. I shall be inviting UKWAmembers to join the group shortly, and Ivery much hope that I will get a positiveresponse from all parts of our varied sector.Regional eventsUKWA holds events twice a year in each ofits region. They have grown in popularityin recent years, and my thanks are due toMick Davison and the regional chairmen foridentifying attractive venues and informativespeakers. Reports on these meetings are putin Warehouse, but I mention them because weare always looking for fresh ideas aboutspeakers and venues. I’d be grateful for inputfrom anyone at any time.Trade showsOur two main trade shows are Multimodaland Foodex. Of the two, Multimodal is themore significant for UKWA members andUKWA itself. Our pavilions at both havegrown, and we will continue to supportthese events. Next year however, we intendalso to be hosting a pavilion at IMHX forFull members of UKWA. It is not a showwhere Full members have taken spacebefore, but the organisers are keen toengage with them, and given the size andscope of the show, it could be mutuallybeneficial.UKWA StaffWe have had no changes in staff during theyear. It has allowed us a period of stability,during which we have been developing newprocesses and procedures in the office.August 2012Our credit control is working well, and wehad excellent results with aged debtors bypassing them to collection agency.International AffairsI end my report by focusing on ourInternational activities. UKWA continues toplay a leading role in IFWLA. We providethe secretariat and the Secretary General,and we are prominent in the decision-makingprocess. There is no doubt that the centreof gravity of the Federation is movingeastwards, but there does not appear to beany appetite from any other member countryto wrest this role from us.This year’s International convention took placein Rome. The UK delegation was larger thanrecent years with 9 delegates plus partners, andwe enjoyed an informative programme.The main item of interest from a UKWA“UKWA has been asked to set up and chair Skills forLogistics’ Warehousing Occupational Craft SkillsGroup. It sounds like an excellent opportunity foremployers to influence matters in this vitallyimportant area”point of view was the bid made by the UKdelegation to host the IFWLA convention inUK in 2015. The bid was successful, andsubsequently endorsed by the Managementboard.We are lucky enough to have a volunteerto master mind the planning of the event.He is Derrick Potter and although 2015seems a long way away, I suspect we will beholding our first meeting very shortly. Bythis time next year we need to be able toannounce the venue, the dates, the outlineprogramme, and perhaps to have securedsome of our required sponsorship. I haven’tspoken to Derrick, but I am sure he wouldwelcome any input you may have, particularlyover the choice of venue and sponsorshipleads.Before 2015, IFWLA meet in Beijing nextyear ( 8- 12 May). It takes place alongside theChinese national convention and anInternational logistics show. And in 2014, ittakes place in Panama, by which time thenewly widened canal will have opened with itsconsequential impact on the regionalsupply chains.“www.ukwa.org.uk

UKWA AGM Report 35New build property shortagewill add to supply chain costsThe lack of speculative industrialproperty development in recent yearshas resulted in an acute shortage ofgood quality, affordable warehouseand distribution space. This paucity ofdecent facilities in prime locations isdriving above inflation increases inrents as landlords seek to cash-inwhich, in turn, is putting additionalpressure on the already tightlysqueezed margins of companiesoperating in the UK’s logistics industry.That was the message from JohnMaguire, UKWA’s National Chairmanin his address to UKWA members atthe Association’s Annual GeneralMeeting, held recently at theDorchester Hotel, London.“Throughout the UK there is a lackof new buildings and sites under fiveyears old built to a high specificationand this has tipped the market infavour of landlords,” John Maguiresaid.“It would appear inevitable thatany increases in rents will result inprice increases across the supplychain – which will not help the broadereconomy as it seeks to recoverfrom the doldrums.”Over the past three years the supplyof new build or refurbished industrialaccommodation has fallensteadily to the point where it nowrepresents just 11 per cent of allavailable stock. Currently 84 per centof all available storage space in theUK is classed as second hand.The situation is unlikely to ease inthe immediate future as uncertaintyarising from the Euro crisis seems certainto delay the return of significantlevels of speculative developmentactivity.“Along with the retail industry, thethird party logistics service sector continuesto drive demand within the“It would appear inevitable that any increases inrents will result in price increases across the supplychain – which will not help the broader economy as itseeks to recover from the doldrums”ABOVE: JohnMaguireindustrial property sector but the lackof good quality accommodation isleaving many 3PLs with little alternativebut to put off decisions to takespace rather than take poor qualitystock. In many cases companies arereconfiguring their existing facilitiesto accommodate new or growingaccounts,” John Maguire added.John Maguire is sales director ofarticulated forklift truck manufacturer,Flexi Narrow Aisle Ltd. He wasappointed chairman of UKWA in 2011and is the first representative from acompany whose core-business is notthird party logistics, to take up theposition.www.ukwa.org.uk August 2012

36 Awards for Warehousing 2012Saluting the best of theUK’s logistics industryLondon’s Dorchester Hotel was once again the setting for the UKWA’s Awards for Warehousing ceremony -where companies and individuals across the warehousing and 3PL sectors were rewarded for excellenceThe main sponsorof the UKWAAwards forWarehousing2012 wasJungheinrich UKLtd. The companyis a leadingmaterials handlingequipmentsupplier andoffers pallettrucks, stackers,counterbalanceand reach trucks,order pickers,VNA trucks andstacker cranes. Inaddition,Jungheinrich providesrental andfinancial services,racking systemsand warehouseplanning.Companies and individuals across thewarehousing and third party logistics(3PL) sectors were rewarded forexcellence at UKWA’s Annual Awards forWarehousing 2012 ceremony, which washeld recently at London’s Dorchester Hotel.This year the Association received arecord number of entries in all categories.The winners were chosen by UKWA’sAwards Committee, which comprised PhilCulling, Chairman of storage systems specialistRedirack; Mel Grainger, a past chairmanof UKWA; and Roger Williams, theassociation’s Chief Executive Officer.Roger Williams commented: “UKWA’sAwards are established as symbols ofachievement in the 3PL sector and emphasisethe importance of logistics withintoday’s economy. The high number andquality of the entries we received underlinesthe professionalism that runs through themodern logistics industry.”A total of nine awards were presentedand the winners were:• Young Employee of the Year - JoanneDolan, Paul Ponsonby Ltd;• Environment Award - Elddis Transport(Consett) Ltd• Team of the Year - Amethyst Group• Warehouse Manager of the Year - SteveNelson, Boughey Distribution• Training Award - Briggs Equipment• Technology/Innovation Award - RedirackLtd• Customer Service Award - CenturyLogistics Ltd• Best New Member - Williams ShippingLtd• Chairman’s Award - Richard HuntOver 400 UKWA members and theirguests, together with suppliers to the warehousingindustry, attended UKWA’s Awardsfor Warehousing 2012 ceremony.The main sponsor of the event wasJungheinrich UK Ltd, while individualAwards were sponsored by: LutterworthEcoLighting Ltd, Redirack Ltd, Knapp UKLtd, Toyota Material Handling UK Ltd,Clarion Events Ltd, Briggs Equipment UKLtd, Psion (UK) Ltd, RedPrairie Ltd andHoppecke Industrial Batteries Ltd.A Summary of each of the winningentries is featured over the following threepages.August 2012www.ukwa.org.uk

Awards for Warehousing 2012 37Young Employeeof the YearSponsored by HoppeckeIndustrial Batteries LtdWinner: Joanne Dolan,Paul Ponsonby LtdThis new award was open to anyemployee not in a supervisory ormanagerial role under the age of25 and was won by Joanne Dolanfrom Paul Ponsonby LtdJoanne graduated from DeMontford University with a degree inAdvertising and Marketing beforejoining Paul Ponsonby in a salesdevelopment role. However, herduties were soon changed toembrace both sales and marketingfunctions.In her first year alone she recruitednine new accounts, redesignedthe company’s website and compiledcompetitor analysis and marketpositioning reports.Joanne continued to impress thecompany’s directors with her willingnessand ability to take on awide range of positions within thebusiness.“Joanne has established herselfas a valuable member of our teamand has assisted the directors in ahost of additional tasks that are notspecifically in her job role,” saidLinda Wildman, a Paul Ponsonby LtdDirector.Runners up• Kara Pyne – CenturyLogistics Ltd• Jamie Bonwick – BougheyDistributionEnvironmentAwardSponsored by LutterworthEcoLighting LtdWinner: ElddissTransport (Consett) LtdThe Award to the companythat demonstrates the mostsignificant and successfulapplication of ‘Greenprocesses, procedures ormonitoring’ during the yearwent to Elddis Transport(Consett) Ltd. The judgeswere impressed by a numberof green initiatives undertakenby Elddis, which includedemploying a leading vehicleaerodynamicsexpert todesign abespoke‘spoiler’to fit to itsvehicles,which hashad a significantimpact on the company’sfuel consumption.In 2011 Elddis employed aleading vehicle aerodynamicistand invested £15,000 ona bespoke ‘spolier’ design tofit to its vehicles. The newdesign was rolled out to 10vehicles in September 2011and such has been its impacton improving fuel consumptionthat Elddis expects torecoup its investment within ayear.Among the other processesintroduced in the past year toimprove Elddis’s ‘green credentials’has been an automatedreporting system thatallows the company to monitorthe particular performanceof its drivers. The systemprovides key managementinformation that hasallowed Elddis to improveoverall fuel efficiency acrossits fleet.Runners up• Boughey Distribution Ltd• MDATeam of the YearSponsored by Redirack LtdWinner: Amethyst GroupThe Team of the Year award – forthe company or depot that demonstratesan outstanding team effortduring the past year in their warehousingoperations – went toAmethyst GroupAmethyst’s Fradley Park distributioncentre is a 107,000 sq ft facilitynear Lichfield in Staffordshire. Itprovides e-fulfilment to three corehigh street fashion retailers – NewLook, Jane Norman and TheEdinburgh Woollen Mills.The Amethyst Fradley team’s2011/12 throughput target was 25per cent higherthan the previousfinancial year.To cope withthe increasedstockholdingrequired to meet its client’s forecastsAmethyst took a number of missioncritical steps:• an extra 105,000 sq ft warehousewas acquired and kitted out;• management identified productcategories that typically sell togetherand rearranged storage accordinglyacross two sites;• a new ‘merged order’ softwareprogramme was developed inhouseto allow orders picked acrossthe two sites to be monitored.• a training academy was establishedto allow Amethyst to traintemporary staff in the run up topeak periods.The steps taken have allowedAmethyst to manage mid-week spikesand maximize efficiencies in the receiptand pick and pack operations. In fact,99.9 per cent of all orders receivedbefore 7pm are now picked, packedand dispatched on the same day.Runners up• Wincanton Plc (Coddington)• MDA• Wincanton Plc (Yeovil)www.ukwa.org.uk August 2012

38 Awards for Warehousing 2012Warehouse Managerof the YearSponsored by Knapp UK LtdWinner: Steve Nelson,Boughey DistributionThe judges were looking foran individual with excellentpersonal and professionalqualities and Steve Nelsonfrom Boughey Distribution fittedthe bill.Steve joined BougheyDistrbution in 2009 andquickly established himself asa popular and highly competentmember of the Bougheyteam.“Steve’smanagementstyleis collaborativeandhe understandstheimportanceof involvingthe team in his decisions,”said Boughey’s WarehouseDirector, Bernard Murphy.“Since Steve joined there hasbeen a significant improvementin the efficiency of operationand productivity withinthe warehouse and the teamhas become more motivated.”Steve’s achievements sincearriving at Boughey includeupdating the company’shealth and safety processes -he has introduced a numberof initiatives or changeswhich have led to an overalldecrease in accidents.Runners up• Leigh Brown – EdwardsTransport• Steve Kavanagh –Amethyst GroupTraining AwardSponsored by Toyota MaterialHandling UK LtdWinner: BriggsEquipmentThis award is given for trainingachievement and can be awardedto an individual, organisation orjointly to both. Briggs Equipmentimpressed the judges with their forkliftservice engineers’ apprenticeshipscheme.The 4-year programme takes studentsthrough their NationalVocational Qualification (NVQ)Level 2 and Level 3 and consists ofboth on-the-job learning at Briggs’head office in Cannock (or basedwith one of its field teams to accommodatestudents from across theUK) plus theoretical training at college.The first year of the apprenticeshipscheme focuses on inductingstudents to their roles in eitherBriggs’ workshop or out in the fieldwhere they gain general, all-roundengineering knowledge. During thesecond year,they areassignedpracticaltasks includingcarryingout supervisedroutine service and maintenancework, which provides morehands-on experience. They attendnine weeks of classroom basedlearning at college with three weekstraining in a workshop environment.Apprentices are placed permanentlyin their specific field throughouttheir third and fourth years andare qualified to level 3 NVQ.Last year, Briggs welcomed sixnew recruits who are now fully integratedmembers of Briggs’ team ofengineers.Runner up• PF Whitehead TransportServicesTechnology/Innovation AwardSponsored by Clarion EventsLtdWinner: Redirack LtdRediRack collected this year’sUKWA Technology andInnovation Award for itsrecently developed automatedpallet storage, retrievalandsequencingsolution.Redirack’sinnovativesolution combinesthepatentedRediLogXpallet bufferand sequencingsystemwith ASRStechnology tocreate an automated storagesolution which can increase thestorage density of existing warehousesby up to 80% when comparedto a traditional VNA systemwhile reducing annualisedrunning costs by a similar figure.In new build situations, the samestorage capacity can be providedwith a 45% reduction in thebuilding footprint giving substantialsavings in constructioncosts.Redirack say that theRediLogX system represents amajor step forward in warehousedesign and operation by combiningnew and innovative technologywith advanced storage systemsto provide greatlyincreased efficiency and substantialreductions in operating costs.Runners up• P&O Ferries• Elddis Transport (Consett)LtdAugust 2012www.ukwa.org.uk

Awards for Warehousing 2012 39Customer ServiceAwardSponsored by BriggsEquipment UK LtdWinner: CenturyLogistics LtdThe judges sought evidence of customerinsight and a customerfocused culture within an organisationand were most impressed withCentury Logistics Ltd’s entry.Such is Century Logistics’ reputationfor good customer care, thatmany ofits clientsnowchoose tooutsourcetheir owncustomerservicefunction tothe company.Indeed, out of 140 CenturyLogistics employees, around 40 areengaged in value added after salesactivities.Century’s after sales servicesinclude providing a call centre forcustomer queries and complaints tohandling booking-in of returns,diagnosis of any faults, quality control,repair and reissue.Another example of innovativeresponse to customer needs is themarketing of end-of-line goods.Century Logistics has set up a specialisteBay marketing unit, realizingan opportunity to increase businesswhile reducing clients’ end –of-linestock write-offs.Complete with its own webdesigners and photographers, thisunit creates a separate eBay identityto market those items- dispatchinggoods from stock without the clientever needing to be associated withthe task.Runners up• Torque• Paul PonsonbyBest New MemberSponsored by RedPrairie LtdWinner: WilliamsShipping Transport LtdThis is a corporate awardgiven to the company showingthe highest professionalstandards of warehousing onjoining UKWA and this year itwent to Southampton-basedWilliamsShippingTransportLtd.UKWA’sMelGraingerhad nohesitation in recommendingWilliams Shipping for thisAward after undertaking amembership survey at thecompany’s Southampton facilityin 2011.Williams is a family businessand has been tradingsince 1894. It is now run bythe fourth and fifth generationsof the Williams familywhich gives a spread of experienceand fresh thinking.Williams provide a number ofstorage solutions from warehousingto open storage, andeven containerised self-storage.Runner up• Warehouse Holdings LtdChairman’s AwardSponsored by Psion (UK) LtdWinner: Richard HuntThe UKWA Chairman presents thisAward to an individual or companywho has made a real and lastingcontribution to the logistics industry.UKWA chairman John Maguire ofFlexi Narrow Aisle Ltd chose RichardHunt.Best known, perhaps, for his workwith the Chartered Institute ofLogistics and Transport (he was theCILT’s first national chairman andsubsequently became President ofthe Institute), Richard was ChiefExecutive of Exel Logistics Europebefore its merger with DHL.He has worked with CranfieldUniversity and the Highways AgencyAdvisory Board and was awardedthe CBE for his services to Logisticsand Transport in 2004 .Watch the Awards on You TubeYou can see the highlightsof this year’s UKWAAwards for Warehousing -including an interviewwith all the Awards winnerson You Tube. Log onto the UKWA website -www.ukwa.org.uk - andclick on the link on the UKWA home page.www.ukwa.org.uk August 2012

INDUSTRY SUPPLIERSAutomatic Guided Vehicle (AGV) Systems● Reduce Labour Costs and Material Damage● Improve Safety, Inventory Accuracy, Productivity andOperational Efficiency● Provide automated storage/retrieval, material deliveryand trailer loading/unloading● Handle pallets, rolls, and containersA flexible, scalable solution for existing warehouses.Contact JBT Corporationemail: uksgvsales@jbtc.com phone: +44 116 264 2250A Day in the Life of a Logistics RecruiterExecutive recruitment for logistics and supply chain is far removed from mainstream recruitment; it’s all about getting to knowcandidates and employers, not just their CVs. Gary Robinson, one of Cast UK’s Managing Directors, takes us through a day at thecompany’s Manchester office.Work starts at 7.30, and at 8.30 I have a breakfast meetingwith a client. There are interviews at 9.00 and 9.30.Interviewing is a skill in itself, and managers often don’tknow where to start; if we can help, we’re happy to takepart. Next, there’s an update meeting with a candidatewho’s just finished a 12-month contract we landed forhim. Since last time his CV has improved, so he’s poppedin to update it.At 11.00 I learn of a client with an urgent need for atransport manager. I call the client to arrange a chat thatafternoon, then create an initial list before confirming candidateavailability.At 1.00 we give our weekly training session. They’regood-natured and informative, and we learn as much asthey do. A light lunch is followed by a 20-minute sessionin the gym.I’m looking forward to 3.30 as a candidate is beingoffered a managerial position. The candidate accepts thepost, and my congratulation is matched by his gratitude.For those who didn’t make it, our work goes on.At 4.00 a client calls with a request for a whole team tomanage a new warehouse. It’s exciting and humbling tobe entrusted with such an important role; but our clientsappreciate that we have the resources to do it. Finallythere’s a team 5-a-side match with a client, which we aimto win – hopefully by a single goal. 7-6 would be diplomaticallyperfect!For more information on Cast UK, please contact GaryRobinson on 0333 121 3345 orgaryrobinson@castuk.com

INDUSTRY SUPPLIERSIndependent Logistics ConsultancyReal experience in selecting, designing, implementing, integratingand operating Warehouse and Transport Management Systems.Typical Services include:• Software Selection• Project Management• Supply Chain or WMS System Audits• Software Integration ConsultancyContact: Lynn Parnell Tel: +44 (0) 7771 623929E mail: info@logisticspartners.co.ukWeb: www.logisticspartners.co.ukSimply Flexible, Reliably Accurate,Genuinely Integrated…Our knowledge of 3rd party logistics and contract packing coupled with ourextensive client base has helped us create a versatile Warehouse ManagementSystem, LocateIT.LocateIT enables you to delight your clients by delivering a first class service,flexible enough to cater for specific needs.We are a software developer originatingin manufacturing, with staff that have direct experience in all aspects of production,process and warehouse management. Clydebuilt therefore is in a unique position tooffer you products and services from an in-depth understanding of the completesupply chain.Our aim is to provide powerful and advanced warehouse management solutions thatsecure long term customer relationships.Supply Chain and Logistics SpecialistsGideon G HillmanConsultingSupply Chain and Logistics ConsultantsGideon Hillman Consulting is an ISO 9001:2008 accreditedcompany and a corporate member of UKWAWe specialise in:• Logistics & Transport Network Design• Warehouse Design & Implementation• Warehouse Operational Improvement• Logistic Outsourcing Tender Managementwww.clydebuiltsolutions.comWAREHOUSE FIT-OUTThe Redirack Group offers warehouse fitoutservices and cost effective mezzaninefloors to compliment any storage systeminstallation. Contact us now.Contact Gideon Hillman Consulting:T. +44 (0) 1926 430 883E. info@hillman-consulting.com W. www.hillman-consulting.comREDIRACK LIMITED Wharf Road, Kilnhurst,Mexborough, S. Yorks. S64 5SUP: 01709 584711 F: 01709 578091e: sales@redirack.co.uk w: www.redirack.co.uk

42 Cover StoryNew deal forlogistics operatorsPrologis has announced the launch of a new build-to-suit five year lease initiative to meet the needs ofcustomers seeking modern distribution space to meet short-term contracts. This is the first time thathigh quality distribution centres have been available on this basis in the UK and the initial reaction fromthe market has been overwhelmingly positive. What has driven this initiative and what does it mean forlogistics operators?As the Government pointed out in TheLogistics Growth Review – ConnectingPeople with Goods (November 2011),logistics is ‘a hugely important part of theUK economy’. The sector directly employsover two million people and supports manyother businesses from corner shops tosupermarkets; from specialist manufacturersto e-commerce entrepreneurs. However,this thriving sector is facing a shortage ofmodern warehouse space.In the boom years leading up to 2008,industrial property developers could hardlybuild speculative warehouses fast enough tomeet demand. Wincanton, for example,snapped up a 700,000 square foot speculativefacility at Prologis Park Kettering as adirect import centre for Argos early in thebuild programme. Also in the EastMidlands, at Prologis Park Wellingborough,Kuehne & Nagel took 540,000 square footspeculative building as a national distributioncentre for the Whitbread supplyingCosta Coffee, Brewer’s Fayre and PremierInn Hotels.The events of October 2008, however,brought speculative development to anabrupt halt; but because developers had anoverhang of supply they were able to meetmarket demand for the next three years.Most of this new stock has now been letand the last two speculative facilities inPrologis’ portfolio built speculatively –123,000 square feet at Kettering and139,000 square feet at Pineham – haverecently been taken by Great Bear andDalepak respectively. However, althoughdemand is increasing, market conditionsare not yet right for the return of speculativedevelopment.August 2012www.ukwa.org.uk

Cover Story 43An Innovative ApproachPrologis has therefore developed a newstrategy, as Andrew Griffiths, managingdirector of Prologis UK explained. “Werealise that since nearly all the stock thatwas built speculatively in 2007 and 2008has been let, logistics operators now havefewer options when they are looking fornew space,” he said.“We have been thinking for some timeabout how we can find an offer that meetsour customers’ operational needs and webelieve that we have found a competitivesolution with the build-to-suit five year leaseinitiative.”In exchange for a five year lease commitment,Prologis will develop a high quality,sustainable distribution centre. The offerincludes fit-out and because it is availableon prime Prologis sites that already havedetailed planning consent, new facilities canbe fully operational within 10 months.This new initiative is that it is available ontwo strategic distribution sites; at Prologis ParkRyton in Coventry, where is can offer a300,985 square feet facility and at PrologisPark Kettering, where the company has consentto build 331,235 square feet.As well as having a prime location, occupierscan be confident that these facilitieswill be cost-effective to run. In commonwith all Prologis’ new buildings, both distributioncentres have been designed to behighly energy efficient; they will both beconstructed to achieve a minimum BREEAM2011 ‘Very Good’ accreditation and thebest EPC rating possible for the buildingsize. Prologis will also address the carbonembodied in the structure and fabric of thebuildings. Embodied carbon will be measured,reduced all unavoidable emissionswill then be mitigated.A ‘Game Changer’Since the launch of this new initiative,Prologis has held meetings with a numberof logistics operators, all of whom beenvery positive - some have even called it a‘game changer’. Reassured by Prologis’expertise and financial strength, potentialoccupiers are impressed that Prologis willbe able to deliver the fully fitted out buildingsso quickly. Depending on demand, itis possible that the company will extend thefive year build-to-suit lease offer to othersites in their portfolio that have detailedplanning consent.“We are very pleased with the responseto this new offer,” said Andrew Griffiths,“There has been a shortage of modernwarehouse facilities in prime locations, butwe hope that this new initiative will meetoccupiers’ needs and help to take theindustry forwards.”www.ukwa.org.uk August 2012