May 2014 The Chamber Bulletin THE OFFICIAL MOUTHPIECE OF THE EAST RAND CHAMBER OF COMMERCE CHAMBERLINK - PROUD SERVICE PROVIDER TO ERCOC May 2014 Why being an ERCOC Member is the smart move 6 Modifying your home & garden Sa’s economic wellbeing closely linked to China’s Sa’s economic wellbeing closely linked to China’s 8
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Transcript
May 2014
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CHAMBERLINK - PROUD SERVICE PROVIDER TO ERCOC
May 2014
Why being an
ERCOC Member is
the smart move
6 Modifying your home & garden
Sa’s economic wellbeing closely linked to China’s
Sa’s economic wellbeing closely linked to China’s
8
Follow us now, read interesting articles such as:
Ÿ A training needs analysis will be a learning curve for allŸ Why amended BBBEE Codes of Good Practice are causing quite a stirŸ What is constructive dismissal?Ÿ Why First Aid training should be top priority in the workplaceŸ Skills development is a constant point of concern in SAŸ Labour law in South Africa is an ever-changing beastŸ DTI BEE: Not an affair with a tall dark strangerŸ How to roll out an occupational health and safety strategyŸ
We want to invite you to join us now and take part in the forum. You are more than welcome to submit subjects for discussion.
For the ultimate networking experience amongst members please follow ERCOC
on the following social networks.
As well the “group ERCOC” on
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I N D E XChamber Bulletin
We want to encourage members of the East Rand Chamber of Commerce & Industry to submit any and all material we can publish within our next Chamber Bulletin.
The purpose of the Chamber Bulletin is to give you the opportunity to put your company, your products and or services into a well compiled document, being sent out to all our members and newsletter subscribers.
We also want to encourage members to make sure that their websites are up to date.
you have new information, or photos,
se
n d t h e m t o [email protected] or arrange for a company representative to come visit you. He will also be able to take some photographs we can use
both the Chamber Bulletin and as updates within your website.
Make use of the services
you
have at your disposal.
If you are unsure what exactly the extent of the services are you qualify for as an ERCOC member, please let us know and we will get you up to date.
As we are nearing the end of 2013, make sure that you have covered all the necessary angles of your company. Make sure everything is up to date so that 2014 can start at full speed.
Business News
Page 4 -
Sa’s economic well being closely linked to China’s
SOUTH Africa can afford a R50bn equity injection for Eskom as its debt levels are still relatively low and manageable when compared with many of its trading partners.It would also help improve the company’s standalone credit rating, said analysts. Public Enterprises Minister Malusi Gigaba is more cautious about the government’s ability to
meet the needs of the utility.
Fitch Ratings London analyst Roelof Steenkamp said the government "can certainly afford it, it’s just a matter of how urgently Eskom needs the money". With South Africa’s debt below 50% of gross domestic product (GDP), the government still had some borrowing capacity left, Mr Steenkamp said. "That’s a healthy state to be in." Eskom told Business Day this week it needed an equity injection of "at least R50bn" to continue funding its build programme
and for working capital to alleviate its cash flow problems.
The struggling power utility is also considering asking the National Energy Regulator of South Africa to review its decision to raise electricity prices by 8% a year over the current five-year period, instead of the 16% Eskom had requested. The new tariff, implemented last year, has left Eskom with a revenue shortfall of R225bn over the five years to 2018. Mr Steenkamp said an equity injection would also support Fitch’s rating approach to Eskom, which aligns it to the sovereign debt rating.
South Africa’s sovereign debt as a percentage of gross domestic product stands at 41%, rating agency Standard & Poor’s (S&P) said in its December update. The agency puts the sovereign debt at BBB with a negative outlook, said director for sub-Saharan Africa Konrad Reuss. The sovereign debt will possibly grow to 44% of GDP by 2016, said the agency. It was "very difficult" to see where the government would get that much money in the short term, particularly given the slow economic growth, said Rand Merchant Bank credit analyst Elena Ilkova. "It’s (the equity injection) possibly not going to happen in the next few months" she said.
"It can possibly be looked at around the medium-term expenditure in October, when the finance minister outlines the government’s expenditure priorities for the next few years." While S&P had "factored in a lot more significant government support for Eskom", Ms Ilkova felt that the money could be found if the government changed its expenditure priorities. "But that does not just happen in the short term, it’s a medium-term exercise. You don’t just switch expenditure to another area. It’s a policy that takes about five years to implement."
Asked if she was concerned that a 41% debt-to-GDP level was high, Ms Ilkova said "that is manageable for now, particularly as the country’s peer countries and trading partners are carrying far higher debt levels". Mr Gigaba said on Thursday that the power utility would have to wait to hear if it would be able to access the funds. "We’re still considering ways to help Eskom with its funding issues, and we still haven’t made a decision," he said. "The government doesn’t have R50bn lying around unused waiting to be given to anybody. The money must first be found somewhere, and we’re working on that."
The decision on Eskom’s request, and one on a similar application for an unspecified equity injection by South African Airways, will be made "at the right time", said Mr Gigaba.
Asked what the right time would be, he said it would be a time "when a decision has been made", adding that "we’re working on it".
Business News
We want to encourage members of the East Rand Chamber of Commerce & Industry to submit any and all material we can publish within our next Chamber Bulletin.
The purpose of the Chamber Bulletin is to give you the opportunity to put your company, your products and or services into a well compiled document, being sent out to all our members and newsletter subscribers.
We also want to encourage members to make sure that their websites are up to date. If you have new information, or photos, s e n d t h e m t o [email protected] or arrange for a company representative to come visit you. He will also be able to take some photographs we can use in both the Chamber Bulletin and as updates within your website.
Make use of the services you have at your disposal.
If you are unsure what exactly the extent of the services are you qualify for as an ERCOC member, please let us know and we will get you up to date.
As we are nearing the end of 2013, make sure that you have covered all the necessary angles of your company. Make sure everything is up to date so that 2014 can start at full speed.
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Sa’s economic well being closely linked to China’s
DEPENDING who you ask, it would seem as though the latest HSBC flashpurchasing managers’ index (PMI) figures either reinforced the idea that the Chinese economy is stalling or that it is looking healthier than many perceived it to be.
Although the PMI edged higher on the output and new order index, exportorders fell below 50. The headline flash manufacturing PMI posted a very modest uptick to 48.3, from the final reading of 48 last month. This is in line with the consensus expectations but lower than our forecast of 49.
It was much the same with the most recent growth figures. While the first-quarter gross domestic product (GDP) growth figure of 7.4% was slightly higher than the consensus expectation of 7.3%, many analysts are predicting lower growth for the rest of the year. Industrial production, investment, and retail sales all stumbled in the first two months and the latest PMI seems to back that up.
Sub-Saharan Africa, and South Africa in particular, are particularly exposed to the economic health of the Chinese economy and it goes without saying that any slowdown in China poses a pronounced risk to our current account because the bulk of our commodity exports go to China. As the world’s principal commodity consumer, weaker demand translates into softer demand and lower prices. Bad news if you generate a chunk of your export revenue from resources.
Last year, Chinese imports accounted for 14.3% of South Africa’s total exports, and of South Africa’s export earnings in January more than half came from minerals. This trade is crucial to foreign currency generation, especially given our worryingly wide trade deficits. A wider current account puts pressure on the currency, which in turn makes borrowing more expensive and puts pressure on the budget deficit. Ongoing labour tensions at home only add to our potential woes.
At the time of writing this column, the strike in the platinum sector was entering its 14th week and there was little hope that a resolution would be reached soon. Recent mining production figures show that production of platinum group metals has all but collapsed, and inventories are beginning to run low. There was even talk by some miners of importing the metal in order to meet their contracts.
ETM Analytics market analyst Gareth Brickman told me last week that while there is not a direct supply problem yet, he feels that the effect of the platinum strike on the current account is a risk the market has not yet fully appreciated.
The long-term risks to the current account and our fragile currency are especially pronounced if we take into account concerns that the price of bullion is also expected to fall. Lower key resource prices added to lower export figures equal a potential time bomb for the South African Reserve Bank to sort out.
Continue on P12
TH YRE T SCH UDAM NI B DE NR A O EF CCO REMM
ChamberlinkService provider to the
East Rand Chamber of Commerce and Industries
BASIC MEMBERSHIPThe East Rand Chamber of Commerce proud itself in the fact that it is first and foremost a service providing chamber. Inevitably any member of any organisation based on membership will ask the same question, a question an astute businessman should always ask of himself
What’s In It For Me?A negative answer to this question will result in negative growth for the organization. It is for this reason that ERCOC (the acronym for the East Rand Chamber of Commerce) decided to employ Chamberlink right from the chamber’s inception in 2005. Chamberlink has provided expertise and service to all 560 member companies employing +-160000 employees for the past 9 years. Amongst others in the following ways
A ‘positive introduction’ business report on the member company.This report introduce the member’s entity to customers, suppliers, financial institutions and the business community as a whole in such a way that it provides credibility and prestigeThis report is renewable annually, should it be required by the member
A business award ranking from bronze to platinum based on the report done on the member company. To qualify for the highest reward, namely platinum ERCOC will require financial statements and the adjudication will be done in cooperation with ‘Business Partners’. If the member so wishes they may enter the Chamber’s Business of the Year Awards.
Website hosting, design and developmentIncluded in the basic ERCOC membership is a 5 page A4 website (or larger if it is required) specifically designed for the member. Chamberlink employ full-time web designers that designs and hosts these personalised websites utilizing also the ERCOC business report as well as the awarded ranking to amplify the members stance in his/her field. Up to ten email addresses can be created for the company.
Six OHS annual training sessions is included in the membershipThe courses are: OHS act for management OHS act for supervisors
Health and safety representative courseAccident and Incident investigation courseBasic Fire fighting First aid Level 1
Since 9/11, South Africa legally requested that every organisation from a School, Churches, Clubs, any form of Business must register its personal “Access of Information Manual” with the Commissioner of Human Rights. Included in the membership, every member will be provided with a manual explaining exactly how and what information may be obtained from the entity and at what cost, if any.
Chamberlink ensure that this manual is registered at the required authority.
To summarize the basic ERCOC membership:The Chamber through the service provider Chamberlink ensures that your HR Department complies with all the legal requirements regarding OHS. Secondly, is it possible to reclaim all your basic membership payments from your Industry SETA, as well as improving your BEE scorecard?
To receive all the services from the Chamber, member companies Pay a Once of fee of R3800 and receive these services anually
A monthly fee of R450 for the total 1st year value of R23250.00
Price list of Chamber servicesAnnual Chamber ReportBusiness AwardsAccess Of Info Act OHS X 6 training Plus manualDatadex / gaffeneys Entry
MonthlyMembershipBulletin AdvertisingWebsite development & Hosting
In addition to Chamberlink……Chamlabour was established as a division dealing with labour issues. Chamlabour is one of the most comprehensive labour consultancy services certified to appear at the CCMA on behalf of ERCOC members. Chamlabour and its associate Attorneys and Advocates ,depending on each case are available at special rates for ERCOC members.
Chamlabour ‘s exclusively designed member services includes:Ÿ CCMA Representation.Ÿ On-site conducting and chairing of disciplinary hearings.Ÿ Necessary documentation, including legally required Notices and Posters Ÿ Employment contracts and Job descriptionsŸ Retrenchment assistanceŸ Yearly submissions of your skills development plan.Ÿ Assistance with the Employment Equity plan and the implementation thereof.To name a few of the main.
Chamlabour prides itself with a professional team of consultants with extensive experience in this demanding field.
Hearings, CCMA, Implementation of LRA BCOE and Complete EEA2 & EEA4
Additional Services on request
Number of Employees1 to 2021 to 4041 to 6061 to 8081 to 100101 to 200201 to 300301 to 500500 & More
South African Courts, both Magisterial and Supreme is operating beyond capacity and unscrupulous companies are using this fact to their own advantage by purposefully defaulting on their business and contractual obligations.
With this reality in mind, The East Rand Chamber Of Commerce established an arbitration forum for medium commercial disputes for their members.
Not only do they provide participating members with assistance in preparation to become complaint with arbitration requirements, (Both disputing parties must agree to arbitration therefor sales order and quotation will have to be changed) but they also accept and deliver all the required documentation (Filling of the Statement of claim) as well as paying all fees due by the claimant prior to arbitration for each and every case presented for arbitration with out limit.
Should the respondent fail to pay their portion of the pre-arbitration fees the Chamber will provide the funds to allow the dispute to be properly presented for arbitration.
Only in the event of both parties failing to reach an agreement and the arbitrator is asked to adjudicate the dispute, will the member become liable for costs of the arbitrator at a daily rate.The following advantages are evident;
1. Disputes are settled within 30 days or less.2. All administrative costs are covered even if the respondent fails to pay.3. The arbitrators decision can be made a court judgement.4. Due to the speedy process all evidence are relevant and fresh.5. The process is affordable and precise.
This service is specifically tailored for Business to Business disputes and is unable to accommodate any other events. Should you need more information please don’t hesitate to contact the Chamber for further details, rules and costs.
Pricing for Chamber MembersPrice pmR750R1800R2750R3500Quote
Setting Up FeeR1000R2500R5000R5000Quote
From page 5
Sa’s economic wellbeing closely linked to China’sWhile the public slowdown in the Chinese economy is enough of a cause for concern, it is what happens behind closed doors that worries me even more.
Asian markets are already exhibiting anxiety over news that the Chinese banking sector could be in dire straits and the more I read about what isn’t known, the more I worry. Last month, the country’s banking industry reported that bad loans rose for the ninth consecutive month. While in itself this is a worrying indicator, the formal banking sector is far less of a concern than the "shadow banking" sector.
For some time now there have been rumblings that China’s credit-fuelled and investment-heavy growth model has reached the end of its useful life and potentially even paved the way for a real-estate bubble such as we saw in Ireland and Spain. A widespread property market crash would be devastating for Chinese investment, which accounts for an unprecedented high level of about half of GDP.
The trouble stems from the fact that government spending was accompanied by a huge increase in credit, as state-owned firms and local government departments borrowed heavily to build real-estate developments and other projects.
Now, while the formal Chinese credit sector may be considered safe by many analysts, the shadow world of credit extension was taken up by minor and regional government departments and aspiring property "moguls" outside of the ever-watchful eye of the Chinese government. By law, China’s local government is not allowed to borrow, but when the going is as good as it has been in the Chinese property market, there is a huge incentive to make other plans.
There seems to be consensus that the formal banking sector is sufficiently collaterised but as for the shadow sector, no one can be sure. If it is the case that so-called "safe as houses" property itself was offered up as collateral in this shadow sector, a property bust would have serious consequences.
Busa News
Join
the
East Rand Chamber
of Commerce & Industry now and make use of all the
services provided by Chamberlink - Proud
service provider to the East Rand Chamber of
Commerce.
Visit www.chamberlink.co.za
for more or phone us on 011 814 7110 / 1
TH YRE T SCH UDAM NI B DE NR A O EF CCO REMM
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We are in the business of Autobody repairs, either from accidents/hail damage of your vehicle.
The Company has acquired the services of suitably
qualified technical personnel with vast experience of the Spraypainting and Autobody repairs business.
We are situated in Germiston Gauteng, and we offer a collection and delivery service of your vehicle to and from, either your workplace or your residential address. We do work in a radiance of 150-200km from where we are situated . We do work for Santam, FNB Insurance Brokers who are affiliate to Mutual and Federal Insurance, Santam and various Insurances. Barrister Trading is an approved GW M C olli sion Re pairer Visit our website at www.btautobody.co.za
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South African labour law, watch this space - yet another ministry may be born. Written by Koot van der Walt
Gwede Mantashe, provincial secretary-general of the African National Congress has hinted that a new small business ministry will be created shortly after the upcoming elections.
The ANC has hinted at the possible implementation of a new small business ministry after the elections. Financial commentators feel that this could just serve to create more red tape resulting in less people creating small and medium business enterprises (SME’s). The comments say that this would only increase unemployment. Not to mention that South African labour law will have to move swiftly along with the implementation setting out laws in alignment with the governments new
legislations in accordance with the new ministry. When the African National Congress (ANC) secretary-general Gwede Mantashe mentioned the creation of this ministry it was supported by the South African Institute of Tax Professionals. However there are conflicting views by the likes of the Free Market Foundation and others that the possible establishment of this ministry could set out to increase bureaucracy in this country.
Small business enterprises have been pinpointed as the optimal solution to curbing unemployment in South Africa.
Small businesses are considered to be a solution to the unemployment crises we find ourselves facing in South Africa. Changes in South African labour law, more red-tape and bureaucracy could hamper SMEs instead of help this sector of our economy. This year research company SBP compiled the 2014 SME growth index and it showed that 71% of companies who participated in this survey stated that it was becoming more and more difficult to operate a business in South Africa. There was a noted marginal improvement over 2012 however the statistics still remain negative. Our potential innovators and entrepreneurs are demotivated to investigate the possible starting up of their own company.
South African labour laws could be accountable for the lack of growth in the SME sector.
South African labour law is a challenge for SME’s out there. A number of laws in the Labour Relations Act are contrary to SMEs success in today’s business landscape. Free Market Foundation chairman Herman Mashaba said laws such as the South African Labour Relations Act that were "unfriendly" to SMEs were largely responsible for the country’s unemployment situation. It can be said that these laws are accountable for the fact that 7.8-million people are unemployed in South Africa today. SME’s cannot afford to enter into negotiations nor can they afford the conditions of employment and minimum wages that large employers and trade unions agree too.
If the laws and regulations were streamlined there would be a reduced level of regulation and we may be able to see positive developments in the future.
We need fewer and clearer statutes and regulations to be met. No single ministry has reduced the level of regulation in order to facilitate SME growth. In the case of setting up this new ministry the South African labour law would have to remove all laws that are specific to jurisdiction of range of different ministries. A complete review of the South African labour law would highlight where the SME’s are struggling and where they find it impossible to meet set out regulations.
ERCOC Blog
Join the
East Rand Chamber
of Commerce & Industry now and make use of all the
services provided by Chamberlink - Proud service provider to
the East Rand Chamber of Commerce.
Visit www.chamberlink.co.za for more or phone
us on 011 814 7110 / 1
TH YRE T SCH UDAM NI B DE NR AO F E CCO RMME
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In the material handling business, it really is about moving large amounts of goods effectively with profitability. To help achieve these objectives for manufacturers and operators alike, SKF offers an extensive range of products and services for heavy and medium duty conveyors, crane, gearbox and other mining applications.
Drawing on experience and extensive application knowledge in these industries, SKF can help keep your material handling equipment running as effectively and efficiently as possible.
SKF South Africa is celebrating 100 years of innovative solutions during
2014. Drawing on five areas of competence and application-specific expertise
(bearings and units, seals, lubrication systems, mechatronics and a wide range
of services), SKF brings innovative solutions to OEMs and production facilities
in every major industry worldwide.
The Power of Knowledge Engineering SKF South Africa (Pty) Limited
• Good communication • Weekly Site Reports • We have an open book policy within the
company
Why amended BBBEE Codes of Good Practice are causing quite a stir - Written by Lindie van der Walt
There has been a huge amount of interest generated by the DTI with the Amended BBBEE Codes of Good Practice. In October 2013 it is estimated that as many as three thousand people attended the presentations and we were graced with the presence of President Jacob Zuma and two other ministers who were honourary speakers at the event.
BBBEE has become the standard way in which we do business in South Africa. It has been noted that the Amended BBBEE Codes of Good Practice have many mistakes and that there are aspects where interpretation is very unclear however the same concerns were raised when the first codes were implemented in 2007.
The transitional period has been extended.
The transitional period, allowing for the new amended BBBEE Codes of Good Practice to be implemented, has now been extended to April 2015. This means that any entity that undergoes verification after April 2015, irrespective of financial year end, will apply the Amended BBBEE Codes of Good Practice. Any verification between now and April 2015 will have the option of choosing to be rated on the 2007 Codes of Good Practice or the new codes. It is suggested that the Amended BBBEE Codes of Good Practice be implemented now or as quickly as possible so that you can get a head start on your competitors. BEE has always been closely linked to the amount of business a company is awarded and the implementation of the new codes present an opportunity to win business from competitors who have not yet made the change.
There are ways for companies to earn points with the new system.
Using Black Owned Suppliers is one aspect that a company needs to implement to earn points. See the following:
• 9 points are available on Procurement for 51% or more Black Owned Businesses with a target of 40% of total spend• 4 points are available on Procurement for 30% or more Black Female Owned Business with a target of 12% of total spend
Procurement is also top priority as unless you achieve at least 10 points (40% of 25 points) you will drop down one level. It will be harder to earn points from suppliers based on their recognition level because it is now much harder to achieve a higher level. 40% is a fair amount of the total procurement to spend on black owned suppliers particularly if previously you had not bought much from black owned businesses.
You must identify your procurement and calculate it using the amended codes procurement scorecard. It is suggested that you halve your total procurement spend from compliant suppliers to take into account a good estimate of the potential scorecards you will receive from those suppliers.Once you know how much you need to spend start looking through your supplier list for suppliers that are hurting your BEE status. Common examples are suppliers who have achieved a bad level and then of course the suppliers who do not have any black ownership.
List the different types of products/services that the suppliers who are hurting your score supply you with. Through that list identify the types of products/services that you can purchase from alternative suppliers. Follow with a list of all the suppliers who have black ownership and see to procuring services or products from these suppliers.
Remember that a black owned supplier can also be used for supplier development which allows you to help them so that they supply exactly what you need. It is a true win-win because you gain a supplier who could be potentially very loyal to you and you gain BEE points in a set of codes where earning points is much more difficult.
ERCOC Blog
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Powering infrastructure developmentacross Africa Our customers
Major turnkey clients:
• Power utilities
• Municipal electrical authorities
• Mining houses
• Independent Power Producers in both traditional and renewable fields
FIRST AID AND FIRST AID KITS St John courses are nationally recognised standardised programmes. They are based on performance objectives and well defined training standards. First aid is the emergency help that is rendered to a sick or injured person. It is the ability of the person rendering the skills to use readily available materials. First aid procedures vary in intensity from providing minor care for cuts and scrapes to performing life saving techniques such as Cardio-Pulmonary Resuscitation (CPR). First aid will enrich the knowledge of the person to be equipped to deal with any emergency and to provide important treatment that will enable the successful continuing care the patient receives. First aid progresses through 3 levels of care. Fundamental knowledge is gained on level 1 and greater knowledge and skills are acquired by the time the learner reaches level 3. The St John training mate rial is internationally recognised and is regularly updated to keep abreast with the latest training protocols. For home based care, the person that completes the home care course will be able to care for the sick and elderly. This course teaches one how to be a caregiver and provide the care and support the old and sick require. This kind of treatment can be provided at home or within caregiving facilities. One of the advantages of completing the Home Based Care course through St John is that it is coupled with a Level 1 first aid (essential knowledge that may be needed in an emergency situation when providing home care). St John complies with the requirements of 2 statutory bodies. These are namely:- the Department of Labour and the Health and Welfare Sector Education and Training Authority (HWSETA). By completing the above courses, not only will the learner be sure to have a certificate of the highest standard, but one that complies with the South African requirements. St John caters for all your first aid requirements and has a first aid kit that will meet your requirements. There are additional courses that St John offers, for more information on these courses, please contact the Johannesburg centre on (011) 403-4227. EYE CARE St John Eye Care with clinics in Braamfontein, Bara, Pretoria and Westbury, offers clients a range of quality frames from single visions, bi-focals to multi-focals. The range is from budget to trendy frames from as little as R360.00 a pair and clients have a choice from more than a hundred frames. St John also issues certificates for driving school purposes where necessary. For bookings or your nearest clinic, please contact us on (011) 403-4227.
DR Books focusses on the Internal admin process and control, and reports to
Management on the financial status on a monthly basis, as well as the general Book-
keeping and Accounting services any small to medium size company needs.
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Company ProfileLevtrade International (Pty) Ltd was founded in 1990 with the primary idea of providing an effective and efficient method of treating burns in
the acute (emergency) phase.
®A burn is a unique injury - one of the most severe and painful injuries imaginable. Emergency burn care products provide
for the immediate primary care of burn injuries.
®Introduction of burn dressings focused on the emergency treatment of Burns. Trials conducted in Hospitals and the
Emergency Medical Services soon provided the endorsements and acceptance of the Medical profession.
These endorsements, coupled with internationally accepted independent laboratory tests, research and acceptance in key Hospital & EMS
protocol, paved the way for the development to all sectors of the market and led to the introduction of training & educational items to
compliment the range.
As Burns happen anywhere and at any time, the product is used and sold to the Consumer, Industrial, Military, Police\Traffic, Correctional
Services, First Aid Kit Manufacturers, Hospital & EMS\Fire departments.
The Fire Trauma Blanket developed and designed with the Wool Board and the Council for Scientific Research (CSIR) found a ready
market in the Emergency Services field where it is used as entry\escape to\from fire areas, to extinguish flames on a burning victim and to
act as a large dressing providing instant pain relief.
The range is made up of the following:
· Blankets
· Dressings
· Hydrogels
· Burn Kits Contour Body Dressings
®The production of is carried out in our sophisticated factory, Burnshield (Pty) Ltd, under the supervision of Managing Director Max Di Domenico. Here clinical areas and controlled air environment ensured the award of ISO 9001, ISO 13485 and CE (European) mark registration, the guarantee of quality production to the highest European Standards. Burnshield has FDA (USA) and TGA (Australia) approvals to market.
The product range expanded yet again to include SOLACE ® SunCare products endorsed by CANSA South Africa for Aftersun and SPF protection.
As the company grew and opened up new markets, the demand for a quality First Aid & Surgical Range became a priority and a perfect adjunct to the ® range, Levtrade designed and produced an extensive range of First Aid & Trauma Kits to cover every purpose extending to Factories, Hotels, Sport, Retail , Medical Professionals and Corporate own branding.
Our belief in providing quality at all times afforded us the opportunity to distribute our own brand of Sport Strapping, Tapes and Kits ®under the PROSTRAP brand. This has been well received by Sports Doctors, Sports Teams, Physio's, Clubs and Schools.
It is due to the continued support of our many loyal customers and the TEAM effort required in-house that allows us to enjoy the success we do both locally and internationally.
Thank you for taking the time to read through this information. Please contact us for any further information via email
The Optimal Compressed Air & Purification Solution
At Brutes Air Solutions we believe in taking a different approach to the design, manufacture and servicing of compressed air distribution equipment. It's an approach that has served us well and allowed us to become a major South African company serving the local and international market. The difference is inherent in everything we do: In research and technical expertise, design and manufacturing systems, quality assurance, our product range, our customer s e r v i c e a n d ultimately in our products performance. It's a difference that gives our customers total confidence in the ability of our products and service, to meet and often surpass the requirements of their compressed air systems.
Customer relations are a top priority at Brutes Air Solutions; we strive to maintain and improve our excellent standards that have helped the company successfully grow. Our sales and service team have years of experience within the compressed air and filtration industry and are here to help with any queries, be it technical specifications, pricing or delivery. We can provide the support you need, to choose the exact product and service for the precise application. We have obtained the rights to supply all Atlas Copco O.E.M parts, and have access to technical assistance through them.
With over 30 years experience in the compressed air "oil-free" and "oil-injection" market, and 15 years in the filtration market, Brutes Air Solutions can now offer the ultimate service back up by only using genuine parts and "air-ends" from the O.E.M. We are also a fully appointed distributor of Walker Filtration, and can thus offer complete Filtration and Purification Solutions to the Compressed Air Industry Analysis, experience and knowledge of market demands have resulted in a flexible service and distribution programme. By maintaining optimum stock levels, we are able to supply 24hr service and products for instant despatch wherever you are located.
011 817 3600 | 011 817 5623 | www.brutesair.co.za
P26
THE CUSTOMER MAY BE KING OR QUEEN...BUT NOT ALL CUSTOMERS ARE CREATED EQUAL
Do you treat all customers the same or do you treat them differently? Do you know which
clients generate substantial sales and more importantly, which customers generate
substantial profits and cash flow?
In order to determine the relative importance of your customers, rank each customer in
terms of the following criteria:
1) Sales
2) Profitability
3) Payment history
1) Sales
How much and how regularly does the customer spend money with you? Is sales revenue
stable, increasing or declining? What is the sales revenue per month over 12 months or
more? To calculate sales revenue, we first identify the products sold and then the number
of units of a product sold x selling price per unit, we then deduct any discounts granted.
2) Profitability
Look at profitability by product purchased and then adjust/ reduce for discounts, delivery
and returns. When we talk about client profitability we are referring to gross profit. Gross
profit is equal to sales less the cost of buying or manufacturing stock.
The calculation of the cost of sales for a wholesale or retail business is very different to that
of a manufacturing business.
Wholesale or retail business
In the case of a wholesale or retail business, the actual cost of a product is the purchase
price less any discounts received plus all costs incurred in getting the product to your
warehouse or store (transport, insurance, import duty, equipment hired or purchased to
unload, the cost of labour used to unload stock etc).
Manufacturing business
In the case of a manufacturing business, the calculation of the cost of sales is much more
complex as one has to take into account direct material, direct labour and other
manufacturing overheads.
Direct material – forms part of the final manufactured product, eg. wood used in a
table, and the quantity used varies with production volumes (you use twice as
much wood for two tables as you would for one).
Direct labour – is the labour physically applied to manufacturing the product.
Manufacturing overheads – include all manufacturing costs except direct
material and labour.
Ø Indirect material – does not form part of the final manufactured product eg.
cleaning materials or materials whose cost is so small that it is not worth calculating
Steven DelportSteven is the founder of Integer Consulting Solutions.
He is a facilitator on a number of the leadership development programmes and coaches current MBA students at Wits Business Schoo l , lec tu res MBA finance at Mancosa and writes for Entrepreneur magazine.
For more informat ion, p l e a s e v i s i t www.integerconsultingsolutions.com
eg cotton for sewing a suit.
Ø Indirect labour – cannot be directly linked to the final product eg the factory
supervisor or people who maintain and service the machinery.
Ø Factory rental
Ø Rates and taxes
Ø Water
Ø Electricity
Ø Insurance of the factory and stock
Ø Leasing of machinery and equipment
Ø Depreciation of machinery and equipment
1) Payment history
How do the credit payment terms compare to other customers? Look at the frequency and
ease with which you are paid for your products and services. If you are paid late and have to
follow up frequently with regards to payment, this adds to your costs and should be used to
adjust the customer profitability mentioned above. The key question here is: “Are the credit
terms reasonable for that customer and are you paid on time in terms of the agreed credit
terms?”
You have already identified your key customers who generate the majority of your sales and
profits. How many of these are your late or bad payers?
From your categorisation you now have customers which roughly fall into the following
categories:
· premium
· intermediate
· marginal
Is there over reliance on any of your premium customers? Would the livelihood of your
business be threatened if one of these customers closed down or moved their business
elsewhere? If the answer is “Yes”, then you firstly need to ensure that these customers are
exceptionally well looked after and secondly that you actively identify and target potential
new premium customers so that your reliance on your current key customers is reduced.
Now assess those customers in the intermediate and marginal categories with a view to
determining their potential future revenue and profit potential for your business. Do they buy
exclusively from you or occasionally from you? Are their businesses well managed?
How many of the intermediate and especially marginal customers have substantial future
revenue potential?
You should now have the following clients:
1. premium – in terms of existing revenue spend
2. intermediate – with good opportunity for future revenue and profit growth
3. intermediate – with little opportunity of future sales and profit growth
Steven DelportSteven is the founder of Integer Consulting Solutions.
He is a facilitator on a number of the leadership development programmes and coaches current MBA students at Wits Business Schoo l , lec tu res MBA finance at Mancosa and writes for Entrepreneur magazine.
For more informat ion, p l e a s e v i s i t www.integerconsultingsolutions.com
4. marginal – with good opportunity for future growth
5. marginal – with little opportunity for future growth
In categories 1, 2 and 4 you need to ensure that the relationship and service levels are
maintained or improved still further. You should develop the relationship at multiple levels
within the customer.
In category 3 the relationship and service levels should be maintained or possibly reduced.
In category 5 you need to exit or improve profitability. Since sales volumes cannot be
increased, then the way to increase profitability is to:
1. increase prices and/ or reduce discounts
2. reassess the credit terms
3. strictly enforce payment terms
4. do not accept returns
5. establish a minimum value for goods to be delivered or charge for delivery reduce
the number of client calls made or limit customer contact to phone calls
Steven Delport
TH YRE T SCH UDAM NI B DE NR AO F E CCO RMME
ERCOC
JCP STEEL SUPPLIES opened it's doors for business in 1992. It soon became clear that there was a need for a devoted chromadek supplier who was able to offer good service in the South African market. JCP have become just that.
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Superb Trailer Sales has the biggest stock of used and refurbished trailers and tankers, which we can offer to any customer, corporate or small. We also selling a big variety of used trucks.
164B Oosthuizen StreetBardeneBoksburg1501
Tel / Mobile : 071 141 3695Fax : 086 692 3555E-mail : [email protected] : www.superbtrailers.co.za
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Botanichem has secured agencies in some of the top chemical companies globally. Click on Agencies to Check out our Agencies.
Fusion Guarantees was established in 2006. The company is an Authorized National Credit Provider NCRCP 4426.
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18 Hennie Alberts StreetBrackenhurst Ext1Alberton1447
Address: 55 Ilana Street Delville Ext1, Germiston 1401 and 6 Theodore Street
Catercity Catering Equipment cc was established in Johannesburg in 2006 and boasts a range of some 200+ products.
Our factory situated in Benrose Johannesburg is equipped with modern machinery and staffed by people with decades of experience in the industry.
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Included in our product range are fryers, bains marie, tables and sinks
Transoil Services (Transoil) specialises in all aspects of Transformer Oil Regeneration and Purification.
Services offered by Transoil include:
Ÿ Manufacture and supply of Transformer Oil Regeneration and Purification Plants in stationary and mobile configurations.
Ÿ On Site Transformer Oil Regeneration and Purification with their new state of the art Mobile Transformer Oil Regeneration Plant (MRP);
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Ÿ Maintenance and Management of all types of Regeneration and Purification Plants;
Based in Johannesburg South Africa, Transoil’s four directors have over 55 years experience in the design, manufacture, sales and commissioning of Regeneration and Purification Plants and they have commissioned machines on every continent in over 70 countries.
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Our client base includes all major mining houses, blue chip industries, utility and transport providers at state, provincial and municipal level and our target markets embraces major economies in Sub-Saharan Africa.