What you need to know about the Trans Pacific Partneship

After being kept secret for years, the wording of the Trans Pacific Partnership (TPP) has now finally been released. The wording contains practical guidance for traders on how to use the TPP.

The TPP is a free trade agreement (FTA) that if implemented will cover 40% of global GDP. The member countries are Australia, the US, Japan, Canada, Mexico, Vietnam, Singapore, Brunei, Malaysia, New Zealand, Chile and Peru. The TPP covers traditional FTA areas such as trade in goods, investment and services but also contains commitments regarding labour, competition and environment laws.

Some interesting points for those who trade in goods are set out below:

  1. To claim the reduced duty rates offered under the TPP, an importer will need to present a certificate of origin. However, this certificate of origin can be prepared by the manufacturer, exporter or importer, and does not need to follow any particular form. This will make use of the TPP much easier than other FTA Australia has entered into.
  2. The one certificate of origin can be used for multiple shipments over a 12-month period. Where you are trading in the same good over a continuous period, this provision will greatly cut down on the red tape associated with FTA use. This may be a reason why a party will seek to use the TPP over an alternative agreement such as the Japan Australia FTA.
  3. As expected, origin will be assessed by reference to content from all TPP countries. This will be particularly useful for goods exported from the US, where currently uncertainty about Mexican content can deter importers from using the US FTA. Under the TPP it will not matter if the US good contains content from Mexico, Canada or any other TPP member.
  4. Not all imports into Australia will be immediately reduced to zero. However, generally it can be said that Australia’s tariff reductions under the TPP are quicker and wider than under other FTA. Examples of goods where the duty is phased out are:
    • Footwear – reduced over 4 years;
    • Herbicides – 5% for the first 3 years than reduced to zero;
    • Many clothing and textiles items – 5% for the first 3 years than reduced to zero;
    • Motor vehicle components – reduced over 3 years;
    • Certain irons and steels – reduced over 3 years.

If implemented, the TPP will constitute the second or third FTA Australia has with all but three TPP members. Despite this, there will be reasons why using the TPP will be desirable.

The first will be more relaxed certificate of origin requirements. Self-certification (including by the importer) will make claiming an FTA preference under the TPP much easier than some alternative FTA.

Also, the ability to use the one certificate of origin over multiple consignments will provide enormous benefit.

For many, the main benefit will be that it will be easier to establish that a good is covered by the TPP than one of Australia’s bilateral FTA due to origin being based on content from all TPP members.

What’s next?

Now that the wording has been released, each TPP member country will need to obtain domestic approval of the agreement. The biggest stumbling block could be the US where there are many critics of the TPP. For instance, Hillary Clinton has opposed the TPP.

Given the TPP will be debated in a US election year the ratification and domestic implementation of the TPP is far from certain.

Despite its uncertainty, the TPP should still be taken into account when making long-term supply chain decisions or negotiating long term supply countries. However, in the medium term traders are encouraged to focus on Australia’s existing trade agreements with TPP members and ensure that these are fully utilised.

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ACCC urges businesses to check that their contracts are fair

The Australian Competition and Consumer Commission is urging businesses to closely review the standard form contracts they use when dealing with other businesses.

A new law will take effect on 12 November 2016, following a 12-month transition period, that offers small businesses protections against unfair contract terms offered by other (usually larger) firms.

This law supplements the existing law on unfair contract terms for consumers. The ACCC, Australian Securities and Investments Commission (ASIC) and state and territory offices of fair trading are responsible for enforcing the law.

“This new law is a positive step for small businesses that are presented with standard form contracts,” ACCC Deputy Chair Dr Michael Schaper said.

“For every business that deals with small businesses, now is the time to check that your contracts are compliant.”

The law applies to standard form contracts between businesses where one of the businesses employs less than 20 people and the contract is worth up to $300,000 in a single year or $1 million if the contract runs for more than a year. Standard form contracts provide little or no opportunity for the responding party to negotiate the terms – they are offered on a ‘take it or leave it’ basis.

“The new protections will help address significant imbalances or disadvantages to small businesses in their dealings with other businesses by allowing the courts to declare void unfair terms within standard form contracts,” Dr Schaper said.

If you’re from a small business and you’re offered a standard form contract that includes a term you think is unfair, visit the ACCC website to find out about your protections under the law. Information is also available on the ACCC website to assist big business.

Watch our videos to find out about your rights and obligations under the new law.

Foodstuffs’ new DC wins CILT’s Supply Chain Innovation Award

Foodstuffs SI Team Winners

SYDNEY, NSW – Foodstuffs South Island Limited (FSSI) received the Chartered Institute of Logistics and Transport’s (CILT) prestigious Supply Chain Innovation Award at CILT’s Annual Forum Day and Awards event in Auckland on October 21, 2015.

FSSI has significantly transformed its South Island supply chain in recent years, including establishing a new 46,000 m2 ambient distribution centre (DC) at Hornby in Christchurch.

FSSI’s Logistics Operations Manager, Kris Lancaster, said: “As our business grew, our supply chain had become a bit fragmented. Creating a new purpose-designed facility enabled us to restructure our supply chain and create a modern DC that supports our current and future store delivery requirements.”

Prior to the construction of the new ambient DC, FSSI was operating three DCs in the South Island: its original DC in Christchurch at Papanui, which was more than 40 year’s old; a second DC in Dunedin; and a 13,000 m2 DC at Hornby in Christchurch, which commenced operations in 2007.

The new ambient DC in Christchurch covers nearly three times the area of the previous DC at Hornby, and has enabled the business to substantially increase centralised distribution to its South Island stores.

FSSI’s DC at Papanui has been closed and its operations transitioned to the new Hornby DC, while the Dunedin DC has been retained to support FSSI’s stores in the southern region of the South Island with fast moving high volume SKUs.

The Hornby DC services around 150 New World, PAK’nSAVE, Four Square and Henry’s BWS stores, plus a further 1,000 foodservice and convenience customers throughout the South Island.

“All three of our South Island DCs were manual operations and a key priority for our new DC was to introduce automation for our high volume split case items and small bulk picking requirements, which typically account for around 25% of our total order volume,” said Mr Lancaster.

Key design initiatives included minimising the site footprint to reduce travel time between picks, optimising systems flexibility to enable the efficient handling of various SKUs and order types, and implementing integrated order fulfilment systems (OFS) to increase productivity, improve accuracy and raise service levels.

Key features of the DC’s integrated logistics systems, which were supplied by Dematic, include:

  • A seismic-designed ColbyRACK pallet racking system with the capacity to house more than 43,000 pallets to a height of 10.7 m
  • A two-level split case and small bulk zone picking module with zone-skipping conveyors
  • RF and voice-directed picking systems
  • Dematic IQ order fulfilment software.

The ambient DC, which is staffed by a team of around 400, distributes an average of 450,000 cases (8,500 pallets) per week, with the site’s temperature-controlled DC distributing a further 200,000+ cases (5,000 pallets) each week. The DC has been designed to accommodate growth for several years, and provides FSSI with the ability to distribute 1,000,000+ cases per week during peak periods.

FSSI also won CILT’s Award for Implementation and Practice, and FSSI’s Inventory Manager, Simon Olsen, was presented with CILT’s Young Achiever of the Year Award, making it a very successful evening for the business.

Further information: Dematic Pty Limited, 24 Narabang Way, Belrose NSW 2085. Tel: +61 2 9486 5555. Fax: +61 2 9486 5511. www.dematic.com.au

ACCC will not oppose FedEx’s proposed acquisition of TNT

The Australian Competition and Consumer Commission has announced that it will not oppose FedEx Corporation’s (FedEx) proposed acquisition of TNT Express N.V. (TNT).

FedEx and TNT primarily overlap in the supply of express international delivery services of small packages (express services). Express services have time-definite or day-definite delivery guarantees, which are distinguishable from standard air mail services.

“The ACCC sought information and views from a range of interested parties including online retailers and suppliers of express services. Customers did not raise significant competition concerns with the ACCC,” ACCC Chairman Rod Sims said.

“Based on market inquiries and information provided by the merger parties, the ACCC determined that the proposed acquisition is unlikely to result in increased prices or reduced service levels. The merged entity will continue to face significant competition, including from other international rivals with significant global delivery infrastructure and networks. The merged entity will also face a credible threat of new entry and expansion by rivals.”

“Customers of express services face low costs to switch suppliers. If the merged entity attempted to increase prices, most customers indicated they could move to other suppliers, most notably DHL or UPS,” Mr Sims said.

The ACCC consulted other international competition regulators in the course of its review, including the European Commission, whose review is ongoing, and the New Zealand Commerce Commission, which recently approved the proposed acquisition.

FedEx provides small package delivery and freight services through an integrated global network. In Australia, FedEx supplies express services for small packages and freight to approximately 220 countries worldwide.

TNT is an international delivery services company. In Australia, TNT supplies both domestic and international small package delivery services, and domestic and international freight services.

Further information is available at


Forkliftaction announces in-depth report about Safety

Respected materials handling platform Forkliftaction has announced that their independent news team will publish an in-depth feature article on ‘safety’ on November 19th.

Established and recognized, Forkliftaction News has built a strong reputation within the materials handling and related industries over its 15 year history. Forkliftaction News feature articles have become a valuable forum for key members of the industry to contribute knowledge on industry trends and challenges, new technologies and applications.

Although journalists are still refining the focus of the November, ‘Safety Plans’ feature, the report is anticipated to touch on key observations about the main issues in operational safety today including operator training and changing legislations, as well as insights into the most valuable safety innovations over the past few years.

If you would like a valuable insight into what’s happening in materials handling including dealer developments, corporate moves, policy changes, industry initiatives, innovative technologies, interesting applications and of course safety, keep informed with Forkliftaction’s  weekly news edition, subscribe now: www.forkliftaction.com/subscribeSubscribe before November 12th and we will make sure you get the ‘Safety Plans’ report direct to your inbox.

Forkliftaction: your partner in safety

For a range of safety tools to support a stronger culture of safety at your workplace consult Forkliftaction’s many industry resources from safety blogs to industry discussion forums, directory of safety trainers, industry events and more.

A future leader in the Supply Chain and Logistics industry – Nathan Barrett

Future Leader - picEarlier this month, the Australian Supply Chain and Logistics (ASCL) Awards were held in Sydney. The oldest and most prestigious awards program in the industry, the ASCL Awards represent the most recognised and esteemed awards for an individual or a company to be awarded. As a proud sponsor of this yearly event, LMA is always eager to hear about how each nominee is taking strides to lead and develop the industry into the future.

Particularly coveted during the Awards proceedings is the Future Leaders Award. The purpose of the Future Leaders Award is to provide incentive and recognition to young professionals who are both currently working in and wish to continue their career path within the Supply Chain, Logistics and Transport Industry. As part of their win, each Future Leader is awarded with an enrolment into LMA’s ‘The Performance Edge’ 10-week development program.

LMA will soon be welcoming High Commendation Future Leader recipient Nathan Barrett, National Health and Safety Manager from Young Guns Container Crew in Brisbane into ‘The Performance Edge’ program. Industrious, intelligent and team orientated, Nathan is representative of what the Future Leaders Awards are all about, developing professional and personal skills and encouraging the leaders of tomorrow to step up into their future roles.

“The greatest attribute I see in effective leaders is empathy… Knowing when to push for higher expectations, yet also identifying when assistance is needed,” Nathan says.

Founded in Brisbane and now with a nationwide presence, Young Guns Container Crew has a reputation for the high quality service and professionalism it has injected into the industry. Ten years old and now with over 400 team members, the business is committed to providing opportunities for the people it employs and for their customers.
Traditionally, ‘The Performance Edge’ program is only awarded to the Future Leaders winner but Nathan’s dedication to his own development and interest in progressing to become an industry leader has seen him recognised by his peers and mentors as someone unquestionably deserving of this high level of training.

“I want to take away some specific techniques and tips on dealing with our customers and becoming leaders within the industry, as opposed to a leader in our business. I’m excited to learn from the outstanding people I have met from LMA and look forward to developing my personal skillset.”

The future looks bright for both Young Guns Container Crew and the Supply Chain, Logistics and Transport Industry with both recognising that their power and progression is in their people and how they are developed in the years to come.

To view the original LMA article, please click here…

SCLAA VIC/TAS – Carlton United Brewery Tour

Pic 1Thursday 19th November and a perfect 30° C day for SCLAA Victoria members to embark on a tour of Carlton United Brewery. I think the beer sampling session at the end was definitely enjoyed by all.

20 SCLAA Victoria members attended the tour of CUB’s 22 acre site in Abbotsford and it was certainly a well spent couple of hours.

The tour generally follows the beer making process starting with a talk (and smell test) of the locally sourced barley and hops that are the core ingredients that go into the mash tuns along with lots of water and yeast. 1200 Megalitres to be presice.

Now it turns out that this mixture only stays in there for 2 hours if you want to end up with VB whereas beers with less carbohydrates stay in there longer so the yeast can absorb most of the sugars.
After that it’s off to fermentation vessels and filtering before it’s bottled, pasturised and finally labelled ready for distribution to the thirsty Australian populace.

There’s a few highlights from our tour starting with an opportunity to see the fine Clydesdale horses and Dray that just happened to be getting ready for an upcoming event and the customer show truck that they travel around in.

And on that topic of trucks (this was a Supply Chain and Logistics tour after all) there’s a little known fact about the Abbottsford brewery which was built almost 100 years ago.

Originally built so raw materials and finished product could be transported by barge, the brewery has obviously grown to a massive scale where everything moves by road. In fact close to 200 truck movements a day flow in and out of the brewery site.

Pic 3For those that don’t know Melbourne, Abbottsford these days is a residential area on the fringe of Melbourne CBD so the first question that arises is ‘How come this volume of trucks (mainly B-doubles) isn’t visible and causing huge traffic congestion?’  After all the streets around the brewery are normal residential streets not suilted for large trucks – especially 200 of them every day.

Well, the answer for the uninitiated is that there is a secret tunnel that runs from the huge undercover distribution centre and pops out somewhere close to the main freeway. Clever eh?

And the other amazing experience is the packaging line which can manage 1500 bottle per minute. Try and picture that for a moment or think about 25 bottles per second whizzing past. Now imaging three sensors that check correct fill height, cap closure and label positioning followed by a machine that can punch any non conforming bottle off the line without any disruption to the line speed. And that machine is capable of repeating that process on every other bottle if the need so arises. Impressive to say the least.

Now I did mention that the tour finishes with a beer sampling and our members definitely enjoyed that on a 30 degrees day. But apart from that the modern visitor centre, the Carlton United Brewery boasts a terrific café serving up a range of salads, burgers and sandwhiches all of which can be consumed with a drop of your favourite brew.

The only bad news? You can’t enjoy a cold beer if you are registered for the tour. Alsolute zero alcohol rule across the entire site so any beer consumption has to wait until after the tour has concluded.

Needless to say, several of our group were keen to show their Supply Chain expertise and sample a few beers for the purely professional purpose of demonstrating their Quality Assurance expertise. At least that’s what they told me!

Anyway, a great day was had by all. Our special thanks to the team at Carlton United Brewery for a terrific experience.




Young Guns Container Crew’s Scott Young named Young Business Person of the Year

Scott YoungScott Young from Young Guns Container Crew has been named Singapore Airlines’ Young Business Person of the Year at the 2015 Lord Mayor’s Business Awards.

Lord Mayor Graham Quirk said the annual Lord Mayor’s Business Awards celebrated local businesses and individuals who contributed to Brisbane’s $146 billion economy.

“Just over a decade ago Scott and his brother founded Young Guns Container Crew, a start-up company that has now grown to be Australia’s largest shipping container devanning company,” Cr Quirk said.

“Scott engenders fantastic leadership qualities such as persistence, self-awareness, conscientiousness and optimism that he has not only used to build a successful business, but to empower his team and those around him.

“The judges believe that Scott is a leading figure in entrepreneurship and is a fantastic role model for an upcoming tribe of future leaders in Brisbane.”

Mr Young thanked his team and family for all their support.

“Winning this award is recognition for my great team who have all worked so hard to build a successful business,” he said.

“From when my brother and I started the business in 2004, when I was 22 years old, and to reflect on how the business has developed into something truly special – it is a great feeling. I hope this will inspire other young people to get out there and give it a go.”

Cr Quirk said that this year marked a significant milestone for the Lord Mayor’s Business Awards as they celebrated their 10th anniversary.

“Over the past decade we have witnessed exciting growth and transformation in Brisbane as it has become the city of choice for business, investment, study, conventions and leisure in the Asia Pacific,” he said.

“As Australia’s new world city, Brisbane is home to a dynamic and entrepreneurial business community, whose members we are proud to recognise at the awards tonight.

“A huge thank-you also goes to our sponsors including Optus, ANZ, Singapore Airlines, HSBC, Channel 7, Brisbane Times, Australia TradeCoast, Port of Brisbane Pty Ltd, Clayton Utz, Energex, RemServ, Sirromet, BDO, 4BC, Brisbane City Council and Chameleon.”

For a full list of winners in the 2015 Lord Mayor’s Business Awards, click here …



Introducing SCLAA’s New National Partner – SCAA

The SCLAA is a non for profit Industry Association, run by members for members. Our ability to support the SCLAA infrastructure and to expand is highly dependent on our National Partners, one of which we newly welcome is SCAA. We ask all our members to support our valued National Partners where they can.

SCAA logo - blue

Founded in 1995, Secure Communications Advisors Australia (SCAA) specialises in the wireless and telecommunications market. The company services clients across Australia and provides end-to-end communication solutions for the supply chain industry.

In Australia, SCAA is the main product and support provider of an award winning wireless solution from Allied Telesis Wireless (ATW). The wireless solution has been specifically designed for large complex building structures, such as warehouses, which have proven challenging for common wireless products. Together with the ATW, SCAA also provides other communication tools, including software, networking devices, security solutions and services that integrate with your network, wherever you are.

SCAA’s core values are:

……. ü    Create value add– Take time to understand our customers’ business and provide products
..…. …and services that best meet their needs.

……. ü    Don’t sell, assist– Consult, review and advise customers of our products to assist them in deciding
…….on their best solution.

…..ü   Be customers’ one stop shop– Offer an end-to-end solution, integrated to the customers’
..……. current platform where possible.

….. ü  Think Big– Provide services that are beyond customers’ current needs, allowing for future growth.

….. ü  Be reliable– Stay informed, certified, ahead of the market and provide advice and solutions.

SCAA takes a collaborative approach to developing a sustainable solution that aligns with your long-term strategy and precise current requirements. With global resources, local and regionally based staff, SCAA can implement systems at all sizes, focused on delivering superior ROI and customer benefits, as well as being agile to change over time. 

SCAA strongly believes a reliable wireless network is the backbone of real time supply chain solutions. SCAA offers an obligation free initial consultation to understand your business and tailor solutions that are unified with your current communication platform. From small compact warehouses to large open span logistics spaces, the company can design, develop and implement a solution to meet your needs and exceed your expectations.

For your obligation free initial consultation to see how SCAA can improve your supply chain connectivity and communication, please call 1300 762 277 or send your query to info@scaa.com.au. You can also visit the company website at www.scaa.com.au for more information.