MHD Magazine announces Extolla’s launch into the market

A new end-to-end supply chain consultancy is stepping up to take on the industry challenges of a new era. MHD speaks with David Bille of Extolla to discover the company’s vision – and the deep experience that its team brings to the new enterprise.

Extolla – an exciting new player in the end-to-end supply chain consulting and solutions game – launched in January of this year, bringing together some of the APAC stars known to industry through previous work with enVista, whose APAC operations were acquired by another organisation last year.

David Bille, Director of DC Design, Robotics & Automation at Extolla, recently sat down with MHD to tell us more.

With the purchaser of enVista focused on the software side, a team including Peter Kendall and David Bille took control of the consultancy portion of enVista’s APAC business, with the intention of building an even more dynamic APAC-focused consultancy.

“I think one of the key things we bring to the market is our experience level,” David says. He highlights the extensive expertise that each of the directors brings to the company, including in management, supply chain, and software.

Indeed, Extolla brings senior leadership and deep industry experience across all seven of its practice areas: 1. Network Strategy and Optimisation 2. DC Design, Robotics and Automation 3. Technology 4. Planning 5. Transportation 6. Strategic Sourcing and Procurement 7. Omni-channel enablement.

Despite its independence, Extolla maintains a close relationship with enVista in the Americas, as they work together on projects that require offshore resources – a boon for both companies.

But focusing just on the APAC market, David notes that the Extolla advantage is the range and depth of its expertise across the board.

“Our expertise lies in designing and driving innovative and efficient enterprise commerce for leading manufacturers, distributors, 3PLs, and omni-channel retailers,” he says. “We do this by applying our extensive supply chain technology, operations, and software solutions experience.”

GOING THE EXTRA MILE

David notes that, in his experience, many competitor consultancies are too focused on a single segment of supply chain – for example, property – while others purport to touch all aspects but do so in a very formulaic, report driven way.

“The level of detail Extolla goes to sets it apart from other businesses in this space,” he says. “Extolla distinguishes itself by working closely with vendor partners in the automation and robotics space, building and maintaining strong relationships and partnerships. Instead of just providing a report, we support clients through every stage of the process, from project management and commissioning to implementation, transition and operations.”

This holistic approach is particularly valuable for companies that only undertake significant supply chain investments or make significant moves or changes every 10-15 years – and typically do not have the internal resources or experience to effectively design, integrate and implement such transitions.

One of the key customer challenges in the current market is finding people with the necessary expertise and experience. Extolla addresses this by providing an end to end service, helping clients make informed decisions on current technology and maintaining a strong partnership ecosystem.

“Working as a partner rather than just being a vendor is crucial,” David says. And even though Extolla is just a few months old, David is proud to report that they already have 16 staff members on board across the APAC region to deliver a personalised consulting service; a number that – David adds – is sure to keep growing.

A NEW CONSULTANCY TACKLING NEW CHALLENGES

In the coming years, Australia faces numerous supply chain and logistics challenges – including a scarcity of industrial real estate, labour availability, and labour costs. “Extolla is prepared to leverage technology to help customers tackle these pain points,” David says. Of special concern, he notes, are the twin challenges of labour availability and real estate costs.

With respect to real estate costs, he says, “We now are seeing rates that have grown over the last three or four years to exceed $200 per square metre.” He acknowledges that finding suitable brownfield sites has become increasingly difficult as many customers are already space constrained and need space immediately. However, automation can help offset some of these costs by reducing the need for labour. Although automation does not necessarily reduce a facility’s footprint, David points out that “the savings in labour” can make it a viable solution.

Automation technologies like AMRs (Autonomous Mobile Robots) and ACRs (Autonomous Case-handling Robots) are gaining traction in the market. David notes that ACR robotic solutions can now help optimise the use of vertical space in warehouses, which is particularly important as we need to fill the whole building envelope.

“Different types of storage automation solutions are appropriate for different warehouses to make them operate effectively and get the right return on investment for the customer,” he says. “Automation isn’t an answer in and of itself. Every company is unique, and at Extolla we pride ourselves on discerning that uniqueness and crafting comprehensive solutions to match.”

New robotic technologies are entering the market, with some companies offering a “robotics as a service” model. David explains that this shift in the industry has led to rapid growth in the market for these innovative technologies.

In addition to robotics, other green technologies are gaining traction, offering flexibility and efficiency in warehouse operations. Being across all these developments takes years of experience as well as a start-up mindset. But David is keen to underscore that added automation doesn’t mean laying existing workers off – but rather allowing for already scarce workers to be put to better and higher uses. “At Extolla we’re focused on people,” he says. “It’s the culture and the people and the creativity that, in the end, create long-term success. Australia’s jobless rate over the past 20 years has been pretty much the same – between four and six per cent – and automation isn’t going to change that.” Rather, he suggests that the job market has simply evolved, with new opportunities in software and systems support etc. arising as warehouse jobs become less appealing.

“One aspect of our role is to show companies how best to evolve along with the labour market.”

But it’s not just the labour market that’s changing – the whole market is always changing; decision making within organisations is changing – and therefore, David says, consultancies like Extolla must keep pace with ongoing change by providing a new model of consulting.

He notes that in the early 90s and 2000s warehouse managers would have an agreed fixed annual budget, whereas now logistics and supply chain managers must present a business case to CIOs, CFOs and CEOs – who require a clear return on investment for their shareholders or owners to demonstrate proposed projects are viable. This accountability has led Extolla to focus its approach on ensuring all proposed solutions are optimal.

“By offering end-to-end support and working closely with clients to understand their specific needs, Extolla distinguishes itself as a valuable partner in the changing landscape of supply chain and logistics. We’re helping them at every step rather than just doing a piece of work. “We may be a new company, but we’re here for the long haul.”

Extolla has real people, delivering real results in realistic time frames. Let us help you tackle your supply chain challenges.