UGL Unipart (Steve Tonks & Steve Scriven) Presentation for UKTI Webinar
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24th June 2013Overview by UGL Unipart
Doing Business in Australia
www.uglunipart.com
Who are UGL Unipart?
• Joint Venture between:• United Group Limited (Australia) & Unipart Rail (UK)• 500 staff• JV went live from January 2012
• RailCorp awarded outsourced contract to UGL Unipart, commencing July 2012 to:• Conduct all L3 Heavy Maintenance for 1,050 Electric fleet vehicles• Provide Logistics and Supply Chain Management services to 7 Electric & Diesel
Maintenance sites across NSW (1,200 vehicles)
• Contract length 7 years with option to extend further 5 years
• Value of business $1.8b (GBP 1.2b) over 7 years
Strategic Challenges
• RailCorp outsourced contract:• To work alongside RailCorp to achieve world’s best practice for:
• Railway car & component maintenance• Logistics & Inventory Management
• Develop business capabilities which facilitate diversification into varying markets (e.g.):• Transport• Defence• Marine
• Transform supply chain to become highly competent in:• Perfect quality• Globally competitive costs• Exceptional delivery performance• Highly responsiveness• Product & Service Innovation
Current Supply Chain in Australian Rail Industry
• Not performing in many metrics:• Quality – inconsistent• Very high prices compared to UK/Europe• Unresponsive
• Not lean:• Much talk of being lean, but no real depth in executing lean into business
• Not customer centric:• Companies very customer focused and responsive
• Minority• Dominated by OEM’s with too few independent alternative suppliers into the rail
industry
General observations of Australian Supply Chain in Australia
• Positives:• Australia holds many business growth opportunities:
• Buoyant economy• Investment in rail
• Issues with Sydney region:• Rail industry needs much greater business skills to deliver in:
• Quality, Cost, Delivery & Responsiveness
• Industrial Relations climate very strong:• Highly unionised labour force
• Time difference makes real time support from UK difficult
• Government tightening visa approvals process
• Sydney region is expensive v costs in UK
Your Unique Partner in Rail
10,000 people
AU$ 2 bturnover
Operating in 100
countriesworldwide
6 divisions
Majority owned by employees
We takea long term
view
The Unipart Group – Where We Work
New Location Current Location Deploying Consulting Services
BrisbaneDenver
TorontoMahwahAtlanta
Brazil
South Africa
UKGermanySpainBelgiumNetherlands
Russia
UAE China
Tokyo
Sydney
Business offerings:
• Product Supply• Logistics• Consultancy
Initial desktop research / Visits - UKTI
Sydney Location due to sister company operations
Australia
Launched at AusRail 2007
Industry Activities:
• Innovation forums• Industry society participation• Key industry activities
Growing consultancy and Niche Product business
Developed Australian specific products
Achievements
Formation of JV with UGL
States Independent of each other:
• Management Structure – one franchise arrangement • Track gauge• Approval Process• Standards
Tyranny of distance / time – Inter-state and UK
High proportion of ex-pat employees in Industry
Lessons Learnt
Established Rail market – 150 years +
State and Federal finances in place:- State Transport plans - UKTI
Focus on development’s similar to Europe - LX
Showcase at Industry Show – AusRail in Sydney November
Opportunities
Innovation / Modern technology
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