Innovation & Technology Transformation

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1 Innovation & Technology Transformation When is Vending not Vending? David Quayle, Managing Director Australia & New Zealand, Apex Supply Chain Solutions

2 When is vending not vending? SMART Conference Tuesday 26 May, 2015 David Quayle, Managing Director, ANZ 2

3 Presentation Agenda PPE, Spare Parts, Tools: Challenges and Issues in Distribution, Use and Compliance Global Trends and Best Practices Impact of Automated Point-Of-Use Technology Cost Reduction, Accountability and Risk Management The Role of Suppliers 3 You can reduce overall spend by 30%+, reduce downtime, all whilst increasing productivity and compliance

4 PPE, Spare Parts and Tools: Challenges and Issues in Distribution, Use and Compliance 4

5 Product/Asset spectrum

6 Proximity 6

7 Uncontrolled Availability 7

8 Typical Current State Most Current Manual Systems Lack Control High Labour Costs High Risk High Product Costs Low High 8 Distribution Costs Compliance Usage

9 Conflicting Priorities Increasing Pressure to Reduce Costs Managing Risks, Organisational Policy and Regulatory Compliance Reducing Downtime 9

10 Global Trends and Best Practices in the Procurement and Distribution 10

11 Global Trends multiple goals Lean Practices Innovation Visibility and awareness throughout all levels of the organisation Driving bottom line performance in difficult markets

12 Doing More With Less Automation Optimise Productivity Reduce Costs 12

13 Best Practices in the Distribution of PPE, Spare Parts and Calibrated Tools Establish Standards for PPE/MRO Use, Control Use Control, Compliance Point-Of- Work Availability, Cost Center Efficiency Automated Dispensing, Data Capture Automation Vendor Managed Inventories, Automated Replenishment Logistics Workflows, Administration, Electronic Audit Trails, Use, Recertification Periods, Warranty Expiration, Work Order Allocation Back-end Processes 13

14 Automated Technology in Play Secure, Automated Supply Cabinets and Spaces: Cabinets, Drawer Systems Industrial Vending Systems: Vending Machines, Lockers, Dispensers, Bins DEPLOYED NEAR THE POINT-OF- WORK END-TO-END SUPPLY CHAIN Information Systems: Real-time consumption, inventory, compliance and replenishment data

15 Impact of Automated Point-Of-Use Technology 15

16 The Movement Towards Automated Dispensing Is The Fastest Growing Trend in management of PPE, Spare Parts and Tools NA Market Transition full acceptance by 2012 AU Market Shift is Now Underway 16 This Will Drive Profound Change For Both End Users And Suppliers

17 North America Market is Running About Three Years Ahead of Australian Market More Than 2,000,000 Items Dispensed Every Day Growth Rate of New Developments Continues to Accelerate More Than 15,000 Companies Have Adopted Automated Dispensing Word is spreading around the world Over 80,000 Automated Dispensing Systems in Place by End of

18 Automated Dispensing Solutions 18

19 Implementation Strategies Technology Choice Limit Capital Expenditure Scalability o Enterprise Systems o Partner Know-how and Experience Implementation and Installation Costs Ongoing Support Requirements SUCCESS = Keeping it simple! 19

20 Cost Reduction, Accountability and Risk Management 20

21 Driving Cost Reductions Automate Reordering, Streamline Workflows Reduce Consumption and Inventory Levels & Working Capital Eliminate Waste and Misuse of PPE, Spare Parts and Tools Eliminate Stockouts, Emergency Orders

22 Driving Cost Reductions - usage A major Australian Iron Ore miner has an employee base of 10,000 and currently uses 300,000 pairs of safety glasses a year. Each employee receives 30 pairs per year, at an approx. total cost of $6 million. By limiting use to an average of 12 pairs per employee per year, they will save $3.6 million annually. 22

23 Driving Cost Reductions productivity Cheney Brothers 4800 Sqm food distribution 150 staff 100 headsets, 25 radios 150 man hours per week checking in/out Replaced manual system with lockers: Saved $220,000 pa in productivity alone Payback in 6 months 23

24 Accountability, Risk Management & Compliance Traceability by User, Date and Time of Day, Purpose of Use Electronic Audit Trail Compliance and Risk Management Controlled Access, Usage Limits Real Time Visibility, Alerts 24

25 The Role of Suppliers 25

26 Changing How Buying Decisions Are Made Historic Practice Price is Primary Decision Factor in Customer Decisions Emerging Best Practice Suppliers Provide Point-Of-Work Technology in Return for Customers Commitments to Buy Benefits End Users Save Money by Using POW Technology The New Dispensing Business Model Encourages Customers and Suppliers to Work Together in More Collaborative Ways

27 When is vending not vending The answer! 27

28 When it: Reduces the cost of consumables through reduced wastage and elimination of shrinkage. Increases productivity in a warehouse through the automation of hand held asset management. Reduces downtime when automating a fleet stockroom. Etc, etc, etc 28

29 Opportunities In Your Organisation What are the opportunities for you to apply Automated Dispensing Technology in your operation? 29

30 Thank You Apex Supply Chain Technologies Pty Ltd. Suite 6, 13A Narabang Way Belrose, NSW 2085 Phone:+61 (0)