Want to be abreast of the current trends in supply chain and learn about a real life case study then read on and enjoy.

1. SIECAP PROJECT
MANAGEMENT &
ADVISORY
SUPPLY CHAIN
‘Automation and Robotics: What has changed? Why it’s
changed? What you should be considering?

2. 2
 Session outline
 Audience & guiding thoughts
 Content providers.01. Introduction
 What has changed?
 Why has it changed?
 What should you be considering?
02. Geoffrey
Knowles
 Industry solution perspective
03. Graham
Bingham

3. Siecap Introduction
O U R
S E RV I C E S
Siecap is a specialist project management and advisory firm providing
a full range of corporate, capital project and operational services which
assist clients to optimise cost, increase performance, manage risk and
encourage innovation.
We provide complete ‘cradle to grave’ solutions - from strategy
development, through to integration and operational improvement.
Our advisory deliverables include an actionable set of
recommendations which complement our implementation and project
management delivery capabilities.
O U R
E X P E R I E N C E
We have worked on a number of prominent projects and organisations domestically and internationally. This experience
provides our clients with optimised solutions that are cost efficient, realistic and actionable. A sample of clients include:
3

4. Siecap Introduction – Supply Chain
We have advised some of Australia’s, and the world’s leading organisations through the successful
delivery of our core supply chain service offering.
4
1. Strategy &
Business Cases
2. Warehouse &
Transport
Optimisation
3. Property
Advisory &
Delivery
4. Inventory
Management &
Planning
5. Procurement &
Contracting
Our Clients:
Our Services:

5. Content Providers
5
Geoffrey is a Supply Chain professional with 30 years
experience industry and consulting experience. Geoffrey
brings significant experience in the strategy
development and business process improvement fields
covering a broad range of experience across industry
sectors and verticals.
Geoffrey has completed the network strategy projects
and re-engineering analyses for organisations such as
Bluescope Steel, Incitec Pivot, AGL, Caltex, Toyota,
CSR, Energy Queensland and Mercedes Benz.
Graham is a Supply Chain professional with 20 years
experience across operations and network
transformation. Experienced in building and delivering
Supply Chain Solutions across Australia and Europe. As
Director for a niche automation provider, Graham has
responsibility for solution design, operational delivery,
and customer implementation.
Graham has also held senior industry roles with Super
Retail Group, Australian Pharmaceutical Industries
(API), Coles and Parmalat.
Geoffrey Knowles Graham Bingham
Supply Chain Strategy & Design Supply Chain & Automation

6. Guiding Thoughts
6
In seeking to automate, organisations face significant risks to realise
projected benefits due to failure to comprehensively scope what they are
trying to achieve and understand where the impact of change falls.
… a significant driver for these evolving needs is the development of automation
“The evolving demands of the 21st century supply chain are placing an
enormous challenge on individuals and organisations, and requires them to
rapidly adapt and re-skill.”
A rapidly changing automation landscape has increased the possibilities and
requires a broadening in thinking to maximize the beneficial impact.

7. Customer
Compliance
Productivity Capability
Understanding
 What has changed?
 Why has it changed?
 What should you be considering?
02. Geoffrey
Knowles

8. What has changed?
We identify three significant factors that are driving the rise and demand for automation
technologies across the supply chain.
8
IoT
Data Generation
AI
Data Analytics & Insights
Block Chain
Secured & Trusted Data
Platform
Modern
Automation
Actions based on insights
Autonomy
1. Productivity
Labour Land Capital Fuel
2. Regulations
3. Customer
Drivingfactorsforadopting…
EnvironmentWorkplace Laws
Lead Time Quality

9. What has changed?
We identify three significant factors that are driving the rise and demand for automation
technologies across the supply chain.
9
IoT
Data Generation
AI
Data Analytics & Insights
Block Chain
Secured & Trusted Data
Platform
Modern
Automation
Actions based on insights
Autonomy
1. Productivity
Labour Land Capital Fuel
2. Regulations
3. Customer
Drivingfactorsforadopting…
EnvironmentWorkplace Laws
Lead Time Quality

10. 1. Productivity
The past decade has seen an acceleration in trends both negative and positive.
10
Source : theglobaleconomy.com | Australian Bureau of Statistics
67
132
40
60
80
100
120
140
20052000 2010 2015 2020
Labour Cost Index - Australia
LabourCostIndex
Diesel Prices in Australia
0.5
1.0
1.5
2.0
2.5
20101998 2000 2002 2004 20122006 2008 2014 2016 2018 2019
AUD/Litre
Source : Knoema Data
Source : Reserve Bank's Board
6 Month Bank Bill Rates
%InterestRate
0
2
4
6
8
10
1995 2000 2005 2010 2015 2020
0
200
400
600
800
1,000
1,200
20162008 20122010 2014 2018 2020
Industrial Land Values (Sydney)
AUD/sqm
Source : Colliers

11. 1. Productivity
Productivity in the Transport, Postal and Warehousing sector is on the decline.
11
20302020 2025
35
2035
0
5
10
15
50
20
25
30
40
45
55
Transportation &
Storage
Manufacturing Wholesale &
Retail Trade
Share of Jobs with a High Potential
for Automation (%)
Productivity Growth in 2017-18, Hours
Worked Basis (% change)
Manufacturng
3,20%
WholesaleTrade
-3,50%
3,50%
Transport,Postal
&Warehousing
-0,20%
-1,00%
-4,00%
Multifactor Productivity
Labour Productivity
eCommerce and the fragmentation of orders is a likely factor in declining productivity
ABS

12. What has changed?
We identify three significant factors that are driving the rise and demand for automation
technologies across the supply chain.
.
12
IoT
Data Generation
AI
Data Analytics & Insights
Block Chain
Secured & Trusted Data
Platform
Modern
Automation
Actions based on insights
Autonomy
1. Productivity
Labour Land Capital Fuel
2. Regulations
EnvironmentWorkplace Laws
3. Customer
Lead Time Quality
Drivingfactorsforadopting…

13. 2. Regulations
13
Sustainability, carbon footprint reduction, and
packaging waste have been elevated in the public
conscious over the past two or three years
Corporate Social Responsibility
Sustainability
Sustainability requires efficient use of resources
Workplace Laws
Pages of Commonwealth Legislation Passed
Measured by the number of new Federal Laws, the
impact of Regulation Compliance is increasing.
COR OH&S Payroll
Source: Institute of Public Affairs
Regulatory complexity and the demand for business transparency are acting in concert to
increase the robustness of supply chain structures.

14. What has changed?
We identify three significant factors that are driving the rise and demand for automation
technologies across the supply chain.
.
14
IoT
Data Generation
AI
Data Analytics & Insights
Block Chain
Secured & Trusted Data
Platform
Modern
Automation
Actions based on insights
Autonomy
1. Productivity
Labour Land Capital Fuel
2. Regulations
3. Customer
Drivingfactorsforadopting…
EnvironmentWorkplace Laws
Lead Time Quality

15. 3. Customer
15
Quality is expanding from ‘damage’ management
to ‘provenance’ and ‘repeatability’
Order presentation
Leadtimes have been elevated to a high level of
public consciousness
The customer is increasingly challenging to service and satisfy. Customer experience (UX)
is the cornerstone of the supply chain.
Quality
Quantity and weight certainty
Where is it from?
Waiting at home
Maintenance hold ups due missed
and incomplete orders
Surge management – processing of
promotional orders
Lead Times

16. What has changed?
We identify three significant factors that are driving the rise and demand for automation
technologies across the supply chain.
16
IoT
Data Generation
AI
Data Analytics & Insights
Block Chain
Secured & Trusted Data
Platform
Modern
Automation
Actions based on insights
Autonomy
1. Productivity
Labour Land Capital Fuel
2. Regulations
3. Customer
Drivingfactorsforadopting…
EnvironmentWorkplace Laws
Lead Time Quality

17. Why has it changed?
17
IoT
Data Generation
AI
Data Analytics & Insights
Block Chain
Secured & Trusted Data Platform
Modern
Automation
Actions based on
insights
Autonomy
Digital transformation brings unprecedented levels of connectivity. Automation is no longer the
domain of mechanization within four walls but just touches every facet of the supply chain.
Automation is no longer a physical, tethered solution.

18. Why has it changed?
Internet of Things, the global network infrastructure, linking physical and virtual objects through
the exploitation of data capture and communication capabilities.
18
Value / Output : Generate data to develop insights – increasing maturity
Data
Transport &
Access
Data
Analytics
Insights to
Action
Data Sensing
& Collection
Data
Connection
& Connectivity
• Remote Data
Sensors
• IoT Devices
• Network
Connections
• Cloud
computing
• Big Data Analytics
• Artificial Intelligence
• Application Process
Interfaces and
Process Automation

19. Why has it changed?
Artificial Intelligence enables processing of large volumes of data characteristic to supply chain
with limitless practical applications. Analyzing patterns, predictive forecasting and risk mitigation.
19
Value / Output : Intelligent insights to drive automation – early stage maturity.
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
20 25 30 35 40 45 50 55 60
High tech
Retail
Agriculture
Banking
Transport and Logistics
Automotive & Assembly
Aerospace & Defense
Telecommunications Oil & Gas
Automated Warehousing
Autonomous Vehicles
Smart Roads
Autonomous Trucks/
Trains & Ships
Share of AI Impact in Total Impact Derived from Analytics (%)
AIImpact($billion)
Cross Industry Applications

20. Why has it changed?
Blockchain can verify all transactions and data entirely contained on and native to your secure
database.
20
Blockchain is a
“truth machine”
 It’s a database
 It’s shared across multiple participants
 At any moment in time, simultaneously, each member of the network holds an identical
copy of the blockchain database on their computer. That’s the essential principle.
 The data is available to all participants at a moment in time.
 Rule based data uploads.
Value / Output : Secured and transparent database – early stage maturity.

21. Why has it changed?
Automation of physical tasks is almost the ‘go to’ solution in supply chain operations.
21
Value / Output : space efficient, accurate, on demand, capable, efficient, safe – mature state
Benefits are broadening
Scale is changing
Capabilities are changing
Vendors are changing
Investment model changing - RAAS
0
100
200
300
400
500
600
700
0
5,000
10,000
15,000
20,000
25,000
2016 2017 2018 2019 2020 2021
Shipments(Thousands)
Revenue($Millions)
Warehouse and Logistics Robotics Sales
World Markets: 2016-2021
Revenue Shipments
Forecasted

22. Why has it changed?
Our learning is that success relies on a number of fundamentals being fully explored.
22
 Why do you want to do it?
 Is it right for your circumstance?
 Are you ready for the change?
 Are you prepared to invest in the necessary
preparation?
 Can you find the skill set to operate it?
 Are you rushing to fit a build program?
Value / Output : Significant disruption / lost opportunity if underprepared

23. Why has it changed?
Autonomy is the next frontier which will see ‘mechanical’ robotics untethered from the four walls.
23
Value / Output : Significant disruption / lost opportunity if underprepared

24. Scale
Fit
Availability Cost
Evolution
 Industry solution perspective
03. Graham
Bingham

25. Agenda
Can you afford to Automate your Warehouse?
25
• Trends
• Australia wage costs
• On-line / ecommerce
• Companies are automating faster than ever before
• Traditional automation
• Modern automation
• The suppliers / integrators
Birds Eye Walls / Unilever 42K pallet
freezer
Coles NDC carousel and GTP picking Coles Witron fully automated solution
Automated guided vehicles Autonomous Mobile Robots
• Automation
• Costs are reducing
• Lead times are reducing
• Solutions are more flexible
• Automated guided vehicles
• Autonomous Mobile Robots

26. Australian Wage Costs
Australia has one of the worlds highest wage costs
26
• Australian average wage costs 2015

27. On-Line is growing
Retailers forecast ~20% plus for on-line growth against decline in bricks & mortar sales
27
US $ 1,108
Average revenue per
user by 2020

28. Customers & supply chains are changing
Leading companies are automating their warehouse operations
28
• Amazon
• Amazon bought Kiva Systems back in 2012 with robots bringing products directly to employees, who pick & pack products
• Seven years later Kiva claim Autonomous Mobile Robots (AMR) removed the majority of the walking from their warehouse’s
• Tesla
• Tesla CEO Elon Musk announced in 2014 a new factory to product lithium-ion batteries for Tesla vehicles
• Tesla’s robots navigate the factory working alongside production workers completing most “Dumb Moves”
• JD.com
• JD.com building fully autonomous warehouse from pick, pack, and sort

29. Traditional Retail & FMCG domination
Dominated by a few players
High Cost, long lead times (years)
“Fixed” capacity & upfront build for future
29
The Solutions
• Automated Storage and Retrieval Systems
• Sortation
• Mini-loads
• Mono rails
• Fixed rail transport systems
The Integrators
• Dematic
• Swisslog
• Schaeffer
Automated Storage & Retrieval Systems (ASRS)
Benefits
• Ability to handle standard pallets configurations
• High volume through-put
• High density storage
• Positive payback (+ 100 pallets per hour)
Concerns
• Long lead & project implementation times and long payback
• Large expensive infrastructure costs
• Fixed storage configuration and expensive to change
• On-going maintenance
• Single point sensitive eg: Stock “stuck” in cranes

30. Modern Solutions – ecommerce & small parts
Low cost, short lead time, flexible, and scalable
30
Autonomous Mobile Robots (AMRs)
Benefits
• Fast payback (< 3 years)
• Fast installation (weeks)
• Fast deployment (days) and training (minutes)
• Fast pick rates (350 plus per hour)
• Fast packing (can be integrated to packing machines)
• Fast order processing (allowing later cut-off times)
• Can be rented / leased as per conventional MHE
• Scalable (can grow and contract with business)
• Flexible pick face sizing
• Low maintenance
• Perform “dumb moves” to remove team member travel
• Continuous cycle counting and inventory accuracy
• Little, if any, infrastructure costs
Concerns
• Australia slow to adopt
The Solutions
• Autonomous Mobile Robots (AMRs)
• Autonomous Mobile Sorters (AMSs)
• Automated Guided Vehicles (AGVs)

31. Example of recent installation
Low cost rent option with option to buy, scale, de-hire
31
Large On-Line service provider
Project
• Lease of AMR solution signed August 2019
• AMRs and PODs arrive 19th August 2019
• Physical installation completed 30th August 2019
• Commissioning, testing, end to end live orders 3rd September 2019
• Go-live and transition complete 16th September 2019
• Hand-over and on-going support 23rd September 2019
Benefits
• Solution tested with small deployment of 20 AMRs, 100 PODs, and 3 work-stations
• Flexible design to suit customer requirements that can be modified over time
• Team members up and running within an hour picking, packing, and put-away
• Performance tracked and reported real time
Six Weeks from Order to Go-Live!

32. AMR Typical Pilot Program
Low cost, short lead times, flexible, scalable
32
The Typical Equipment
• 20 AMR’s
• 60 PODs / Shelves / Pallet Platforms
• 3 work stations
• 3 charging units
The Typical Project
• 2 weeks data analysis
• 2 weeks solution design
• 12 weeks from PO to equipment arrival
• 4 week installation and commissioning
• 12 to 26 week rental trial period
• “Try before you buy”

33. Autonomous Mobile Robots
Features and Benefits
33
Intelligent learning to optimise storage and reduce AMR travel
Ability to optimise space utilising multiple SKUs per pick slot if required (as per Amazon)
Ability to reconfigure layout to provide high density storage for very slow SKUs

34. Autonomous Mobile Robots
Features and Benefits
34
Intelligent learning to optimise storage and reduce AMR travel
Ability to optimise space utilising multiple SKUs per pick slot if required (as per Amazon)
Ability to reconfigure layout to provide high density storage for very slow SKUs

35. Autonomous Mobile Robots
Features and Benefits
35
Simple to use and intuitive screens for team members

36. Compare the Pair
Traditional Automation will still have a place but AMRs will become similar to renting a fork-lift
36
Mini Load
Costs
• $15 - $20 million
• Lead time 12 months +
• Installation and commissioning 6 + months
Benefits
• Goods to person picking rates c. 350 +
• Typical pick from 1 tote to 3-6 pick to locations
• High volume through-put
• Very High density storage
Concerns
• Fixed storage configuration and capacity
• Infrastructure costs to build racking & conveyors
• Inbound requires 100% re-pack to tote
• On-going maintenance
• Stock “stuck” in cranes if break down
• Often require Order Consolidation Buffer (OCB)
• Lead time from order pick to despatch
• Fixed investment with large up-front costs
AMR
Costs
• $1 - $3 million
• Lead time 12 weeks
• Installation and commissioning less than 6 weeks
Benefits
• Goods to person picking rates c. 350 +
• Typical pick from 25 - 30 POD faces to 25 - 30 ‘Put’ locations
• High volume through-put
• High density option and multiple SKUs per pick bin
• Flexible and scalable (can add or reduce AMRs with volume)
• Capacity can be increased for peak (add AMRs & Workstations)
• Little, if any, infrastructure fixed
• Original supplier box can be used for put-away
• Able to store pallets of stock to reduce handling
• Lower ongoing maintenance
• Stock spread across multiple
• Multiple AMRs so no single point of failure
• Speed from order to despatch
• Can be rented and “try before you buy” approach
Concerns
• Building cube utilisation (height of building)

37. Contact Us
+61 7 3157 4400
brisbane@siecap.com.au
www.siecap.com.au
g.knowles@siecap.com.au
0419 551 453
Lvl 2, 1 Southbank Blv, Southbank, Vic, 3006