Construction of New Sydney premises for GMK continues on schedule

GMK has operated from its current Sydney depot in Smeaton Grange, near Campbelltown in Sydney’s south west, since 2008. The facility has been a great base for GMK throughout that time. However, with the growth of our national operation over the last couple of years, and the prospect of securing a number of new 3PL customers it became a necessity to look for a larger facility.

Following an extensive search of potential sites the decision was taken to build a purpose built facility in nearby Gregory Hills.  Whilst the new site will be approximately double the size of the current Sydney facility it will still be smaller than our Melbourne warehouse at Laverton North, which reflects that Melbourne continues to be home to many of Australia’s major flooring companies.

Construction of our new Sydney home is now well advanced and we are pleased to report that we are ahead of schedule and within the project’s overall budget.

The facility is due to be completed in December 2015 and boasts:

  • A 16,000 sqm integrated transport and warehouse facility
  • The capability to extend the warehouse by an additional 4,000 sqm
  • Specialised racking for carpet rolls, vinyl rolls and palletised product
  • Two laser cutting machines for carpets and potentially another for vinyl floor coverings, subject to customer demand
  • A fully integrated security system with over 40 security cameras
  • 16 transport docks, all equipped with dock levelers
  • A single flow traffic management plan with two street frontages, each with a separate entry and exit point
  • A weighbridge, fully operated from the dock office
  • A significantly larger and more efficient office layout
  • 92 car parks with a separate entrance and exit

This is a very exciting project and is GMK’s first ever purpose built facility.  The recent gain of Cavalier Bremworth’s warehousing business has already confirmed the need for the new facility and, with other solid new business prospects, the depot is likely to be well utilised within its first year.

The Top 10 Reasons To Outsource Your Warehouse to GMK Logistics

The reasons for outsourcing warehousing functions and operations to a third party expert specialist are many and varied. They include the obvious ‘hard’ justifications such as the reduced need for capital investment in your warehouse, the lower cost of sharing compared to owning and the reduced need for specially trained warehouse staff.

They also extend to less tangible or quantifiable benefits such as the value of flexibility that outsourcing brings. In this article we offer you ten powerful reasons why outsourcing your warehouse operations to a specialist, expert 3rd Party Logistics (3PL) operator makes good business sense.

  1. More time to focus on your core business

Regardless of whether you design and manufacture flooring products yourself or import them from other manufacturers, your core business is flooring products and not warehousing.

The case for outsourcing ‘non-core’ business operations is strong, especially if those operations are not direct revenue earners. Instead, when properly viewed as overheads, those operations are likely to be soaking up cash and diverting management time and expertise that could be put to much better use on your core business.

  1. No warehouse Health & Safety compliance issues

Running and managing a warehouse can be particularly complex because of the Health & Safety requirements involved. Regular specialist training and certifications for staff in some areas of warehouse operations are mandatory and subject to strict enforcement.

Health & Safety, while entirely justified, can be cumbersome and even overwhelming. For those reasons, it may be best to outsource your warehousing function to a specialist.

  1. Better service

Specialist 3PL providers, whose revenues depend on the provision of quality services, are more likely to be true experts. Their service levels can also be backed up by appropriate contractual terms.

These service level agreements are enforceable, not just in a legal sense, but also because your service provider will work hard to retain your business and its own reputation. It is in their interest to do an excellent job for you.

  1. Ideal distribution location

You are most likely currently paying for your product to be picked up by your transport provider and transported to their cross docking facility. It’s not only the cost and the double handling involved, there is also a delay in the delivery of your product to your end customer. Speed to market is vital these days and your 3PL provider will have the appropriate transport network available at their warehouse.

  1. Reduced capital investment

Whether you own your own warehouse or rent the space from a third party, the costs are high compared to outsourcing.

If it’s a simple matter of ownership vs outsourcing where costs and cash flow are the only factors, outsourcing is usually the answer. You can free up capital by switching from an in-house to outsourced model, or avoid the upfront cost completely if you are choosing between investment in your own warehouse or outsourcing to an experienced 3PL provider.

  1. No ancillary equipment purchases

As well as avoiding capital investment in warehouse infrastructure, you’ll also save on the associated costs of equipping your warehouse with everything from pallet racking to safety barriers, mezzanine floors and forklift trucks.

The costs of maintaining and servicing this equipment on a regular basis is also significant and it’s worth considering outsourcing on this basis alone.

  1. Flexibility: No long term lease or wasted space

A key benefit of outsourced warehousing is the flexibility it offers your business. You no longer need to worry about long term property leases nor the cost of empty racking during the year to ensure you have space available for the peak season. You will also have an incentive to keep stock levels low, as you will only be paying for what you use, rather than the fixed cost of your own warehouse.

  1. Shared costs: Benefits of a shared resource

A shared resource is likely to be a cheaper resource – because your 3PL provider is spreading their overheads across multiple clients.

The quality of your operation is not compromised because your 3PL provider knows that his business also depends on your business being efficient and successful.

  1. Reduced requirement for HR operations

Management of warehouse staff can be difficult and time consuming, particularly if operations carry on round the clock or your workforce is unionised. As well as outsourcing your warehouse operations you are also outsourcing a big part of HR management, including training, payroll, sick pay, holiday pay and performance management.

  1. Because there are specialists to do it for you

The old business principles hold true: if a 3PL provider can do it more efficiently than you, it’s worth investigating the outsourcing route.

If none of the other reasons for outsourcing your warehouse persuades you, start here. Simply analyse what your warehousing operations currently cost and then compare against the cost of a specialist 3PL provider.

For more information or to discuss your warehousing and distribution requirements, contact David Knagge on customerservice@gmklogistics.com.au or call us on 1300 796 208.

GMK Integration On Track

from www.ctilogistics.com 

Today marks our first 85 days in control of GMK.

It has been a busy time for the CTI and GMK integration team settling the business into the CTI Group.

GMK was established in 1962 (53 years old) as a general carrier providing services between Sydney and Camden (NSW).

Today GMK is a national company providing transport and logistical services to the residential and commercial floor covering sectors.

Head office is in Sydney, with depots in Brisbane, Newcastle (NSW), Melbourne, Adelaide and Perth.

GMK operates an express and general line haul service to and from all capital cities including Canberra.

GMK also provides 3PL warehousing services to clients.

This includes having carpet and vinyl cutting machines at several of our facilities to cut carpet and vinyl to measure for direct delivery to our clients’ customers.

We recently held a two day GMK state managers’ meeting in Perth to plan for the next stage of GMK’s growth and to give the GMK team the opportunity to have a look at a number of the CTI businesses and meet our management team.

It was a worthwhile event with all managers going home with a better appreciation of CTI’s operating systems and the services we provide.

 

GMK acquired by CTI Logistics

GMK Logistics is proud to announce the company has been acquired by Perth based CTI Logistics Ltd.

CTI Logistics is a listed company that has provided transport, logistics and business services to the Western Australia market since 1974.

CTI was attracted to the transport and warehousing strengths of GMK Logistics and its reputation for great customer service.

Following extensive due diligence, the transaction was completed and announced to the Stock Exchange on 10 June 2015.

Being part of CTI Logistics will provide even greater financial stability to GMK Logistics and will give it access to a range of support services and expertise within the CTI Group.

GMK’s CEO, Derek Lightfoot, has confirmed that it will most definitely be “business as usual” at GMK.

“Whilst we are now a subsidiary of CTI Logistics, I like to think of it as a merger of two outstanding and complementary businesses. Both companies have been in business for decades, have strong family company backgrounds and a total commitment to customer service. This transaction is good for GMK Logistics, its employees and, most importantly, its customers.”