Information about this monitoring programme was provided in Customs Release, Issue 25, of 29 January 2010. Click here to see article

For import in the February period, 21 shipments were identified as being non compliant. The value of the non compliant entries was $530,000.

If you require further information about this compliance programme please e-mail feedback@customs.govt.nz.

The awards, the brainchild of PriceWaterhouseCoopers and Fairfax Media, aim to raise awareness of sustainability, and redefine sustainability as being more than just ‘going green’.

The awards attracted more than 110 individual entries across five categories, with Urgent Couriers and The New Zealand Merino Company jointly winning the overall award for medium sized firms.

Urgent Couriers has gone carbon neutral and has also addressed the industry’s sustainability.

With competition pushing prices down, courier drivers, who work as contractors, were no longer earning a liveable wage. Urgent Couriers made a decision to raise wages and is helping drivers to better manage their businesses.

“We were being, as an industry, pretty irresponsible by just paying them everything they earnt and expecting them to deal with it. So we put in place some pretty rigorous training processes and then the ability for them to save tax with us so when tax time came it wasn’t a problem,” says Urgent Couriers managing director Steve Bonnici.

The New Zealand Merino Company has been credited with helping the fine-wool industry extricate itself from the boom and bust of the commodity cycle by founding a brand that relies on traceability.

Chief executive John Brakenridge says it is no longer good enough to claim sustainable practices, companies have to prove it.

“People are wanting to know more and more about where the products come from. We have a programme called Zque that goes in and identifies not only about some of the on-farm practices around animal welfare, not only around social responsibility which is the linking in of contracts, but links in the whole supply chain,” he says.

Locus research, a design and development company of just seven employees, took out the small business category.

It focuses on designing sustainable products, but it is also endeavouring to educate others, producing a how-to booklet on sustainable design.

“Our office and the impact of our office is quite small in comparison to the people that we work for. If we make one change and if some of the other people in design community make changes, that actually has a quite a significant downstream impact,” says Locus Reserach managing director Timothy Allan.

The big business category award went to IAG, which owns State and NZI Insurance.

Its initiatives include tailoring insurance policies to reward customers who clock up fewer kilometres or drive hybrid vehicles.

“We wouldn’t do it if it wasn’t the right thing to do economically. We have a strong view that it’s the right thing for our customers, and it’s the right thing for our community. So we think more and more customers will choose companies with better credentials in the community space and the environment space,” says IAG chief executive Ian Foy.

Judges say that correlation between sustainability and commercial success was plain to see in the award entries.

Julia Hoare from PriceWaterhouse Coopers says those businesses that have strategically taken a long-term view have gained a significant competitive advantage.

Other award winners include:

Strategy and Governance – carboNZero programme
Workplace – Urgent Couriers
Marketplace – carboNZero programme
Environment – Urgent Couriers
Community – Fonterra/Sanitarium

One company, Westpac, reached the finals of all categories, and was rewarded with a special commendation.

With a mandate to support New Zealand businesses internationally, New Zealand Trade and Enterprise (NZTE) is positioned to help deliver on that commitment.

When we appeared before this Select Committee in April 2009 we were still reflecting on our success at the World Trade Promotion Awards. Our advice continues to be sought by other economic development and trade promotion agencies worldwide.

We remain focused on building and improving our international connections, the business capability of New Zealand firms and improving the environment for enterprise and growth.

Our work is underpinned by the Government’s focus on increasing productivity, innovation and international performance, and support for industries that are internationally competitive.

But we are conscious of the need for our strategic approach to be agile enough to meet the shifting needs of exporters in a fragile global economic environment.

In the past year we have continued to work hard to position NZTE as a recognised authority on international business.

We have used our international network to gather intelligence that is shared with businesses, with Ministers and with the policy agencies shaping the Government’s response to the downturn.

We have supplemented this with specific research around recession survival strategies.

On the basis of this information we have directed our efforts where we can make the biggest difference to the New Zealand economy.

We have reorganised our business groups to ensure that we are focused on the needs of the companies we work with and that we perform as efficiently as possible.

Ten months ago we discussed with you our intention to alter our funding programmes. That work has been completed and we are now in a position to invest, as part of a wider support package, in New Zealand businesses that are most likely to succeed internationally in the short to medium term and contribute to New Zealand’s long-term economic growth.

We are also working towards being much more flexible with our products and services and to offer businesses solutions tailored to the level of their international business engagement.

Other New Zealand businesses may come into contact with us on a more occasional basis through our Business Services Team, our regional network, or by accessing the self-service material we provide on our New Zealand business website.

We have built strategic relationships with other business organisations including Business New Zealand, Export New Zealand, regional economic development agencies and chambers of commerce, to ensure the right mix of programmes and services are available for businesses as at all levels.

In recent months we have been closely involved in the discussions with the Ministry of Economic Development, Treasury and other government agencies in the preparation of the Government’s Economic Growth Agenda.

NZTE has provided input based on our own experience and expertise and what we know from what businesses have told us in the past 12 months.

We are also working more collectively with other government agencies in support of exporters. Businesses have confirmed that they see NZTE taking a leadership role in this space to coordinate government support to exporters.

We have agreed with the Foundation for Research, Science and Technology that we will share information about the companies we both work with and coordinate our efforts to grow these companies.

We continue to work closely with the Ministry of Foreign Affairs and Trade to make the best use of our combined international resources on trade access, developing networks, and gathering economic information.

We are working with our counterparts at Austrade where there is opportunity for New Zealand Australia to work together to compete in other markets.

In December NZTE’s founding Chief Executive Tim Gibson departed to pursue other business interests. The international recruitment process for a new Chief Executive is well underway. Applications closed late January. Candidates of a suitable calibre will be short listed and interviews with a panel of Board members will be held in early March.

We are proud of what NZTE has achieved, but we are focused on what still needs to be done.

We have several high profile opportunities to plan for, including New Zealand’s presence at the Shanghai Expo 2010 in China and the Rugby World Cup here in New Zealand in 2011.

Our role in preparing and supporting businesses to take advantage of these events, and the opportunities they present, will be significant.

We are beginning to see some confidence and resilience returning to the New Zealand business scene. However, international markets continue to present a much tougher environment for New Zealand businesses than in recent years.

Now more than ever, the role of NZTE is crucial in supporting New Zealand firms doing business internationally.

Jon Mayson, Board Chair, New Zealand Trade and Enterprise
Submission to Select Committee February 2010

Article Courtesy of NZTE

The recession is over. Business decision makers can now think less about surviving the present and more about creating the prosperous future we all want. Radio Frequency Identification (RFID) with its huge potential for gains in efficiency and customer service must be part of that thinking – and not just in Europe and America but in New Zealand and Australia as well.

RFID thought leader Kevin Ashton, the executive director of Boston’s Auto-ID Center (where the Electronic Product Code or EPC was developed for use with RFID), recently predicted a worldwide resurgence of interest and investment in RFID. Ashton says two years’ of global recession have choked off innovation in many areas and cleared the way for superior technologies to take off (as such economic occurrences always do!)

In his view, we are about to see the “New RFID” – a rush of simpler, lower-cost applications of the technology for specific tasks like tracking high-value items, controlling lights for energy efficiency and identifying individuals in particularly sensitive situations. Ashton says vast supply chain management usage of RFID – which was the earlier vision for this technology – has largely been put on hold but it may well follow later when more people are familiar and comfortable with less ambitious applications in many smaller settings.

New data in Europe may support that perspective. A Eurostat survey on technology usage by businesses shows personal identification and access control, along with vehicle toll collection, are the most frequent uses of RFID today. Of all firms currently applying the technology in some way, only 29% are doing so to track and trace inventories in their supply chains. RFID is used most by utility providers and, not surprisingly, by information & communications companies. Next are transport and storage businesses.

Overall, the latest information from Eurostat could be seen as depressing. Europe-wide, only 3% of enterprises employing 10 or more people currently make some use of RFID. The percentage is highest in the Netherlands (9%) and Finland (8%). On the other hand, this is really just confirmation of what we already know, that RFID usage is still modest everywhere. It is an indication of the growth potential for “the new RFID”.

In the US, Wal-Mart – one of the world leaders in supply chain applications of RFID – has been very quiet over the past year on its future intentions. However that company’s new Chief Information Officer, Rollin Ford (yes, that’s his real name), has started 2010 with some bullish statements on RFID. Ford says Wal-Mart will move ahead with plans to adopt generation-2 EPC tags from 30 June, continuing the programme that his RFID evangelist predecessor (Linda Dillman) started in 2003.

In our part of the world, we will see more action on RFID in the short term, notably in livestock farming and meat production. This January, the Government approved plans for a National Animal Identification and Tracing system (NAIT) that will see all cattle RFID tagged from October next year, with deer scheduled to follow in 2012.  New Zealand is coming out of recession with a major commitment to this form of technology in an industry at the heart of its economy. Traceability for export market access and biosecurity are the critical drivers – and we expect NAIT to continue developing with the adoption of RFID technologies that are even fit for purpose in the medium term.

Livestock farming and meat production is a great place to make the economic case for RFID. There are significant upfront costs, but far less significant than the costs of not getting into this technology. The longer term returns are potentially huge. Other sectors could do well to follow suit – healthcare, logistics and transport, and apparel retailing to name a few.

The recession is over, the costs of RFID equipment are coming down and there is growing awareness of big benefits in a multitude of uses for the technology. What more is the world waiting for?

Although the year has started very well for Storepro in particular with a number of customers moving or more accurately reconfiguring to make sure they don’t have to move in the near future so we don’t mind either way – growth or retraction both require our services and both ensure continual efficiencies.

Personally I see this year as only a slight move forward in terms of growth and the main requirement for efficiency and cost cutting will still be very evident – the recession may have officially ended but hasn’t actually disappeared and it is “on hold” so I believe we may still see some more pain for many businesses.

In terms of racking and warehousing we have seen a lot of consolidation and downsizing and this will continue; the demand for recycled or used products will remain; warehouses will continue to be higher and so does the racking and the working aisle and thus land footprint all become smaller.  We are seeing companies hold a lot less stock, shipping is down thus reducing outright storage capacity but more advanced planning and management systems to assist in this way of doing business.  What’s more it is also become a lot more acceptable in our industry of racking and shelving particular that due to increased and more advanced design things take longer and are often custom made though Storepro do hold a large amount of product off the shelf (excuse the pun).

All said and done we at Storepro are looking forward to it and in the first two months have seen us with projects in Sydney and the UAE – im not sure if that makes the rest of the world better or worse off than NZ !!!

Aaron Young
Managing Director – Storepro

So, I think traceability is a great concept. But for it to really work effectively, a producer or manufacturer needs to know where their products have been at any given time or are currently, and who has been or is currently handling, moving or storing them.  Otherwise, how can a product be recalled effectively and efficiently or the exact information be gathered on where and how problems are occurring in the supply chain?

The hard reality of traceability in any industry sector is this: It becomes increasingly difficult the longer the supply chain and the more parties that are involved. Even large and well-resourced producers can lack visibility on everyone and every location along their global supply chains. Could Fonterra identify all parties who were in contact with SanLu enfant formula when the melamine contamination scandal broke in China in 2008? Probably not, although Fonterra urged a public recall on product as soon as it became aware of the problem.

With traceability, there is a second important concept emerging at an international level – Discovery Services. Focusing on RFID technologies and networks initially, discovery services simplify the information exchange between trading partners by linking information about RFID enabled products to locations as they move through the supply chain. This offers trading partners the ability to find all parties which had possession of a given product and to share RFID events about that product. This allows participants to proactively manage their supply chain and ultimately to
realise more of the benefits that RFID promises.

The challenges though are not insignificant; common product and location identifiers, trust in the information network, data integrity and confidentiality, information ownership and management, access control, privacy and end-to-end resiliency to name some key ones.

The concept of Discovery Services has been around since RFID became ‘popular’ again around the turn of the century but it’s only until recently that a global working group has come together to establish the technical standards for such services. Global RFID standards organisation EPCglobal (part of GS1) facilitates the project involving over 40 major global producers and manufacturers and all have first-hand understanding of problems that can arise when some of the intermediaries are strangers to those at either end of the supply chain. They want discovery services that
provide effective and timely insight into parties on whom they are ultimately reliant to get products to market – and back, if necessary. The project is expected to take about a year.

The EPC (and internationally standardised) form of RFID has so far had plenty of application around the world (including in New Zealand, eg: Eastpack Kiwifruit) but is used principally to identify and track products or assets, within one organisation or location. The value of EPC/RFID to all supply chain trading partners will be greatly improved when information flows are extended beyond the organisation and across the supply chain – and
of course, that is what traceability depends on. As information is one of the valuable of corporate assets, the key enabler for deriving maximum benefit and value from this advance is a service that enables selective information sharing and proactive product management. Watch out for the arrival of discovery services as the next big step in that direction.

Gary Hartley | General Manager – Sector Development
GS1 New Zealand Inc; | Level 2, 262 Thorndon Quay | P O Box 11110,
Wellington | p +64 4 4941063 | f +64 4 4941051 | m +64 21 348687 | e
gary.hartley@gs1nz.org | w http://www.gs1nz.org

This year I have decided to undertake a Post Grad Diploma in Logistics and Supply Chain Management through Massey University. This is the first step in gaining my Masters so I’m excited and somewhat nervous.

As an entrepreneur, I believe it is essential to remain relevant in whatever industry you are involved in, this means you can’t keep doing the same thing and expect to be an industry leader or a dominant figure in your particular area of expertise.

It’s like an entrepreneur creating budgeting or financial software but has little knowledge of accountancy or an entrepreneur who is putting together a marketing strategy but has little knowledge of social media. To remain relevant you have to do two things,

1. Get Educated (Get some qualifications)
2. Educate Yourself (Get involved in your particular community and learn)

The supply chain is always changing especially internationally, with new technology and new emerging markets, logistics professionals have to adapt and become more flexible.

In New Zealand the logistics industry moves like an elephant, big and cumbersome, the reason for this is simple, the decision makers are from the old school and like I have said before are becoming less relevant.

We are starting to see an emergence of skilled, educated and technology savvy logistics professionals who are starting to shake up the industry.

Over the course of this year I will be profiling some of these individuals as well as give you an insight into the latest happenings in the industry.

Nigel Lewis

The only permissible exceptions to this requirement apply to import containers where all of the goods are imported by the same client, and

(a)  part of the shipment is being entered on a Temporary Import Entry;

(b)  part of the shipment has previously been accounted for on another entry eg goods shortpacked;

(c)  part of the shipment is for removal to a licensed customs controlled area either for further manufacture in a licensed manufacturing area, or for the deposit, keeping, or securing of imported or excisable goods, pending the export of those goods.

The New Zealand Customs Service and Ministry of Agriculture and Forestry has commenced monitoring import transactions of entries which show a container status of FCL where further entries for the same container are also received and those transactions do not meet the exception criteria. From next month statistics will be published in Customs Release detailing the level of non-compliance that is identified.

For further information please e-mail feedback@customs.govt.nz

Uncertainty from the recession has translated into some key learnings for many businesses . Companies that were hurt by not having enough flexibility in their model will present new opportunities to 3PL providers, as an increasing interest in “user pays” solutions becomes apparent.

2010 may also see a continuation of further acquisitions and mergers unfolding within the industry.

Jim Coley
Online Distribution Services

Interesting, lively, and educational activities and displays will be in Wellington and Auckland over the coming week.

Tuesday 26 January — Wellington
In Wellington, join us at Civic Square between 11am and 4pm. Please note, the rain date is Thursday 28 January.

Saturday 30 January — Auckland
In Auckland, International Customs Day is part of the Auckland Anniversary Weekend celebrations at the Viaduct Harbour. Come along to see the displays and demonstrations between 11am and 5pm.

International Customs Day is free-of-charge to attend.