Top Banner
Supply Chain Today July 2012 1
40

Supply Chain Today July2012

Mar 09, 2016

Download

Documents

Promech

"Supply Chain Today" is endorsed by the Council for Supply Chain Management Professionals (CSCMP), the Consumer Goods Council of SA (CGCSA), the Chartered Institute of Logistics & Transport SA (CILTSA), the SA Express Parcel Association (SAEPA), SAPICS, the Road Freight Association and SmartX.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Supply Chain Today July2012

Supply Chain Today July 2012 1

Page 2: Supply Chain Today July2012

2 Supply Chain Today July 2012

Scania Solutions in Distribution.Scania offers a full range of distribution solutions, from a 4x2 8-tonner to a 6x2 18-tonner rigid.

So let us provide you with a complete vehicle solution, whether you need a temperature controlled body, a flat deck, dropside or curtain sider, with or without a trailer.

Our distribution range also comes with the highest torque in its class, therefore making it extremely fuel efficient, both in city driving conditions as well as on regional routes.

For more information contact your nearest Dealer. Details available on www.scania.co.za

Trucks / Buses / Engines / Scania Finance & I nsurance / Ser v ices

Scania Southern AfricaAngola, Botswana, Malawi, Mozambique, NamibiaSouth Africa, Tanzania, Zambia, Zimbabwe

Page 3: Supply Chain Today July2012

Supply Chain Today July 2012 3

July 2012

Contents

Proprietor and Publisher: PROMECH PUBLISHINGTel: (011) 781-1401, Fax: (011) 781-1403E-mail: [email protected], www.promech.co.zaManaging Editor: Susan CustersBusiness Manager: Louise Taylor Advertising Sales: Lelanie DiamondProduction Manager: Zinobia Docrat/ Donovan VadivaluAdministration and Circulation Manager: Catherine MacdivaSubscriptions: Please email us at [email protected] if you wish to subscribe to “Supply Chain Today” at R405,00 (incl postage and VAT) per year; R1 020,00 per year for Africa/Overseas.Printed by: Typo Colour Printing, Tel: (011) 402-3468FSC (Forestry Stewardship Accreditation)

The monthly circulation is 4 025

CopyrightAll rights reserved. No editorial matter published in Supply Chain Today may be reproduced in any form or language without written permission of the publishers. While every effort is made to ensure ac-curate reproduction, the editor, authors, publishers and their employees or agents shall not be respon-sible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Cover Story4 Electric Lifting Truck - a South African First

Forklifts7 Pallet Truck Passion9 Onward and Upward

Cold Storage11 African Idiosyncrasies13 Expansion on the Cards

Warehousing15 My Warehouse Nightmare

Market Forum — Unit 18 Market Forum - Unit

Sapics Report-Back 21 Africa’s Potential Unleashed

Procurement 23 MoU Between CIPS and SOEPF

Transport & Logistics Management25 R260 Billion for Transport and Logistics Projects

Economies in Africa29 Africa. But, Where in Africa?

Market Forum — Supply38 Market Forum - Supply

Endorsing BodiesAfritag (div of Smart Card SocietyCCF (Cold Chain Forum) CGCSA (Consumer Goods Council of SA)CILTSA (Chartered Institute of Logistics & Transport: SA)SAAFF (The South African Association of Freight Forwarders)SAEPA (SA Express Parcel Association) SAPICS (The Association for Operations Management of Southern Africa also mailed to: CSCMP (Council of Supply Chain Management Professionals)

Also mailed to RFA members

Featured on the cover:

Goscor Lift Truck Company Tel: 0861 GOSCOR

(467 267)[email protected]

www.goscor.co.za

(The cover image was taken at the Chilleweni Cold Stor-age Solutions premises in City Deep, Johannesburg)

Page 4: Supply Chain Today July2012

4 Supply Chain Today July 2012

COVER STORY

T he Donkeys, which each have a 7, 5-ton lifting capacity and transport all common slave pallets, were hand-built specifically for use in SA at Doosan’s new Materials

Handling Division in Langenfeld, Germany.

Petr Cizek, general manager Cargo for Menzies Aviation in South Africa, says the Donkeys have

been an important addition to the operation since their arrival in January. “This was the best invest-ment we could have made at this time,” Petr says.

Precision builtGLTC, Darryl Shafto,managing director, recently visited the Langenfeld plant, says the Donkey is where the world is moving in terms of air cargo handling. “With environmental concerns topping agendas, and people increasingly trying to reduce diesel usage, the fully battery-powered Donkey is a machine of the future. It is a precision-built, powerful, and green machine, and we are thrilled

Morné Potgieter, warehouse duty manager at Menzies Aviation’s station at OR Tambo with the new Doosan Donkey

Electric Lifting Truck – a South African

Goscor Lift Truck Company (GLTC) has delivered two Doosan Donkeys to Menzies Aviation’s cargo facility at the OR Tambo International Airport. This is the first time that this groundbreaking electric lifting truck for the

horizontal transport of ULDs (unit load device) on slave pallets has been put into harness on South African soil. The Donkeys are used for handling air cargo.

TThhiss iss tthee firrst ttimme thahat this grounundbrreakkinngg eeleectrricc lifftinngg trrucck for the hoorizontal transpop rtt of f ULLDs ((unnitt lloadd ddevvicce) on slaave pap llets has beeen pputt intto haarnnesss oonn SSouuthh AAfrici ann ssoio l

Page 5: Supply Chain Today July2012

Supply Chain Today July 2012 5

to join with Menzies Aviation in bringing the trend to South Africa.’

Safer manoeuvringPetr says the Donkey has a number of advantages. “It is powerful enough to lift a whole slave pallet, so instead of having to split it into different parts to transport it, as is necessary with smaller-capacity forklifts, we can bring a pallet inside in one go and break it down in the warehouse. This means operators can get more done in less time, which means increased productivity all round. In addition we use the Donkeys to avoid forking large pallets through the warehouse, a much safer method of manoeuvring. And the risk of cargo breakage is far less with the Donkey than when you are working with forklifts,” Petr says.

GLTC area sales manager for Johannesburg Lucas Hopley, who facilitated the handover, says the partnership between Goscor and Menzies is an exciting one. “Menzies is the leader in its field in South Africa and is one of the best possible endorsements for this breakthrough product,” Lucas says.

Lucas adds that while his company offers a wide range of financial solutions he was pleased that Menzies opted in this case for a long-term rental with full maintenance. “In many circumstances this is the most efficient solution.”

Donkey’s performing“We are very pleased to be working with Goscor, and we are delighted with the Donkeys’ perfor-mance so far,” Petr says.

Organic growthMenzies Aviation is a global provider of passenger, ramp and cargo handling services that has grown rapidly since its inception in 1995. Through a combination of organic growth and acquisitions, it has established itself as a major force in the international ground handling industry, operating at more than 131 stations in 29 countries. It has branches in all of South Africa’s major cities.

GLTC, part of the Goscor group, is the sole pro-vider of leading global brands such as Crown, Doosan and Bendi in South Africa. The Goscor Group, now part of the Imperial Group, has been supplying the local market with state-of-the-art industrial equipment and world-class solutions for 26 years.

Menzies Aviation, a subsidiary of John Menzies plc, is South Africa’s leading provider of passenger, ramp and cargo handling services. It offers three distinct services: ground handling, cargo handling and cargo forwarding. Its operations are guided by an unrelenting focus on safety and security, for its customers and employees. Menzies has consistently been improving SA airport services since 2008, after being granted ten operating licences by ACSA (Airports Company of SA).

It has since become the premium ground handler in South Africa and the recipient of numerous awards, including from: Etihad Airways (Most Improved Station Worldwide), Cathay Pacific (Most Improved Station Worldwide), Kenya Airways (Most Customer Compliments Network wide), and ACSA (numerous Feather Awards, including for Best Airside Service Provider and Safety).

Darryl Shafto, Goscor Lift Truck Company, Tel: 0861 GOSCOR (467 267), Email: [email protected], Website: www.goscor.co.za

COVER STORY

TThhiss mmeeanns oopeerattors can get more done inn leesss tiime, wwhhicchh mmeaanss inncreeaseed productivityy all rouundd

Chilleweni Cold Storage Solutions, a valued Goscor Lift Truck Company customer, has 2 Crown Heated Cab Units on site operating in temperatures reaching -30°c. The cover image was taken at their premises in City Deep, Johannesburg.

Page 6: Supply Chain Today July2012

6 Supply Chain Today July 2012

Partner with the warehouse pioneers

0861 61 61 61 www.apcstoragesolutions.co.za

We help companies become innovators in their industries

with expert warehouse designs, premium technologies, and

over 21 years’ experience in warehouse solutions.

Our products and services include racking, shelving, ware-

design, installations, inspections and training.

For a complete warehouse solution, contact us today!

Page 7: Supply Chain Today July2012

Supply Chain Today July 2012 7

Pallet Truck Passion

Dieter Glöckle, Manhand

FORKLIFTS

T he new Maximin electric pallet truck de-veloped in China by E-P Equipment, and distributed throughout South Africa by Manhand, has been awarded the 2012

Red Dot Award for elaborate and innovative product design.

Dieter says, “Electric materials handling equipment is not new to the market but one of the main is-sues at hand is changing the mindset of the user. In addition, the health and safety benefits of the electric pallet truck are considerable in terms of less exposure to fumes and manual pallet truck activity. The Maximin conforms to international standards as well as being cost effective”.

Simple and robustHe adds,” As many industry players are now

The health and safety benefits of the electric pallet truck are considerable

It is wonderful to walk into a factory of forklift trucks and pallets and find the director so excited that his passion flows throughout the building and along the boardroom table. This is how Dieter Glöckle, director of Manhand, strikes us when

“Supply Chain Today” sits down to talk to him about their new electric pallet truck.

realising, Chinese manufactured equipment, components and supplies are of the highest standard just as much as any of their European manufactured counterparts. The willingness on the part of the Chinese to ensure that what has been requested, is manufactured to the standards required by the customer has been paramount in the evolution of their quality and manufacturing capabilities. In the case of the Maximin electric pallet trucks, the Chinese have developed a simple, robust and reliable workhorse which is good value for money”.

Manhand has been importing Chinese materials handling equipment into South Africa for some 15 years, and were one of the first South African companies to engage in such a partnership.

Fully assembled“Equipment and maintenance costs are an impor-tant factor in the materials handling and logistics sector due to the current economic climate, and while generally speaking, capex is down, it is my opinion we have found the affordable niche in the market and we anticipate great interest from the sectors we service.

“The Maximin arrives fully assembled, and despite importation costs it is still the most affordable electric pallet truck available in South Africa. The patent is currently pending, and I believe this effective electric pallet truck can revolutionise the materials handling sector in this country”, Dieter elaborates.

The Maximin offers strong power with a 1.5 tonne capacity, more efficiencies while lifting, lowering, walking and turning with a durable solid body frame. The electric pallet has excellent detail with an easy to dismantle and assemble 60AH battery. Once fully charged, the Maximin electric pallet truck will be powered for an entire eight hour shift, with overnight charging providing a fully charged and workable truck the next day.

It is a small, space saving handler, and its light body enables greater agility in the smaller areas. It offers greater operating safety features under every condition, including full loadings. The handler is easy to assemble and dismantle. Also available are electric pallet stackers, straddle stackers, stand-on stackers, fork-over stackers and lifts to name a few.

Less downtimeWith the current electrical outage situation in South Africa, one has to ask how viable this new cost competitive electric pallet truck will be? Dieter explains, “The electricity outage issue in this country is of course a cause for concern.

Page 8: Supply Chain Today July2012

8 Supply Chain Today July 2012

FORKLIFTS

However so many customers and establishments have already installed back-up power generators thereby eliminating that problem. If the user has more than one battery available for charging, and the charging operation is conducted correctly, the pallet truck or forklift should be ready first thing the next morning fully charged and ready for operation.

“The main issue in terms of keeping the Maximin properly charged is operator training, something that Manhand offers to their customers. It is

much like charging a cell phone” says Dieter “If you keep charging the phone for small periods of time, it will not charge properly and will ultimately damage the battery. If you charge it properly, as fully advocated by the manufacturer, there will be no downtime experienced. The key, essentially, is to charge fully when the pallet truck indicates it is required”.

Manhand offers a two year warranty, ready sup-ply of spare parts, 24 hour technical back-up, product training – whether it is a diesel or an electric piece of handling equipment. Flexibility is one of the companies strong points, so if the demand for rental is high, a negotiated package will be available to customers, in addition to the purchase option.

Moved with more easeDieter continues, “The Maximin is the most com-pact and simple electric pallet truck available and costs a third of those currently available in the market. The main benefit is that it is more efficient and productive than manual models due to the fact that the operator can move heavy loads with ease”.

Dieter also anticipates that health and safety legislation on using diesel powered equipment in confined areas will catch up with our overseas counterparts. “While LPG units for food-related sectors also offer emission considerations, the cost savings are still minimal compared with electrically-powered units”.

Dieter Glöckle, Manhand, Tel: (011) 976-3053, Email: [email protected]

A simple, robust and reliable workhorse which is good value for money

Page 9: Supply Chain Today July2012

Supply Chain Today July 2012 9

FORKLIFTS

S upply Chain Today’ catches up with Micron MD, Stan Contat, to find out about more. “Over the years, our Johannesburg

facility has grown from about 400 sqm with seven employees, to a manufacturing facility of 2500sqm and a service facility of 800sqm in Durban with a total employment of 61 people,” he reveals.

Micron Holdings is also now being split into Micron Engineering, Micron Materials Handling, Micron Product Support, Micron KZN and Micron Commercial Properties.

New additionsThe company has added several new attachment ranges recently. Its range of bale clamps for the paper, pulp, tobacco, cotton and scrap industries have improved features of durability, visibility and ease of service. A forward bin dumper for fruit and vegetable applications has improved forward-

Onward and Upward

Progress is the order of the day for forklift attachment company Micron

Engineering, not only with automation slowly pushing sales but internal

restructuring and product launches too.

Neil Human (Product Support Manager) with Danie Jordaan and the After Sales team. From left to right: Brian Harris, Fredi Smoog, Gustav Van der Maelen, Aaron Tshabangu, Raymond Stebbing, Neil Human, Danie Jordaan

Jeremiah Levi (Sales Executive) & Mark Tucker (Sales & Marketing Manager)

This picker has significantly improved productivity

Page 10: Supply Chain Today July2012

10 Supply Chain Today July 2012

growing with the need for increased productivity and less reliance on manual labour.

“Our focus is customer satisfaction first, em-ployee upliftment second and profits third. We believe in creating a working environment based on fun, commitment and teamwork to assist in delivering the best possible customer service,” concludes Stan.

”Apart from our diverse equipment, we have re-alised the key to success is focused on creating a sophisticated after-sales support network, ensuring high levels of uptime during the contract life of our product. With service centres countrywide and engineering back up in Johannesburg and Durban, we are able to offer technical support in all the major South African centres,” reports the company.

WidespreadMicron imports and manufactures many local attachments and configurations, including side-shifts, dedicated double pallet handlers, bin tippers, masts, carriages and others. Its products are supplied by partners in Finland (Paper Roll Clamps), Germany (Multi Pallet Handlers), Italy (Rotators and Carton Clamps), Netherlands (Tele-scopic and Roller Forks), Canada (Heavy Duty Tyre Manipulators), USA (Pushpulls) and China (Mechanical handling equipment and forks).

Locally-designed and manufactured products in-clude heavy duty rotators, bin inverters, tobacco and cotton clamps, as well as dedicated handlers, sideshifts and many other specialised products.

Apart from forklift attachments and accessories, the company also supplies various mining and au-tomotive companies with engineered components.

Micron supplies to a number of South Africa’s leading blue chip companies including ABI, Coca Cola, Defy, Whirlpool, RDS, Unilever, Sappi, Mondi, Sasol, Corobrick, Tongaat Hullet, Portnet, Transnet, Unitrans, SAB, Imperial Logistics and many more.

Micron Engineering, Stan Contat, Tel: (011) 421-0738www.microneng.co.za

FORKLIFTS

Matt Viljoen and the engineering team - from left to right: Philip Swanepoel, Matt Viljoen, Dirk Jacobs

dumping motion and is more simplified, while a tyre manipulator, sourced from Canada (CWS) and used for mining applications, is more rugged and durable than those of other market suppliers.

An upgraded layer picker was recently launched for beverage applications and is running at five ABI sites. This picker has significantly improved productivity.

While Micron does offer short-terms rentals, new sales far exceed rentals. A variety of top-selling products depend on the season. Generally, multi-pallet handlers and bale clamps are the highest sold per unit, while paper roll clamps are lower in unit sales, but similar in revenue generation. Both products have good serviceability and durability.

Growing trendThe company had its hands full with projects last year, including supplying layer pickers for ABI, a 42-ton rotator for Sasol, intelligent carton clamps for Whirlpool, fork clamps for Lafarge and telescopic forks for Nestle.

Stan admits, however, that the company does face challenges, but is however upbeat about the future. “While the South African market may not grow significantly in terms of forklift sales, the utilisation of attachments by forklift users is

FORKLIFTS

Customer satisfaction first, employee upliftment second and profits third

Dustin Graham (Financial Director) and Stan Contat (Managing Director)

Page 11: Supply Chain Today July2012

Supply Chain Today July 2012 11

COLD STORAGE

African Idiosyncrasies

P eter Solomon, Managing Director of Transfrig tells “Supply Chain Today”, “I have seen growth in the transport refrigeration industry over the last 10 years, and am very opti-

mistic that this trend will continue, particularly throughout Africa and in various specialised sectors. As a result, our current manufacturing premises require additional space, and within the next 12 to 18 months, we will be expanding our Linbro Park operations to over 7 500 square metres in order to accommodate the growth anticipated within our industry, particularly in Africa.

“As electrification becomes more readily available in other parts of Africa, we anticipate that this region is going to represent the biggest growth overall in refrigerated transportation needs. Although already active in parts of Africa, our current focusing is on East and West Africa, as

As a result of their continually increasing market share, Transfrig, South Africa’s only manufacturer of transport

refrigeration equipment is currently expanding their premises in Linbro Park, Johannesburg. In addition, the company has recently launched its new ‘green’ environmentally friendly

refrigerated unit called natureFridge.

well as Mozambique. It is our goal to set up agencies in these regions stocked appropriately, while in South Africa we work through a network of service dealers”.

Specialised ventilation solutionsSectors such as one-day-old chick transporta-tion, medical supplies and the perishable food sector, are areas where market growth is already becoming visible. In addition, we offer specialised transport refrigeration solutions to the cash-in-transit vehicles, where operations throughout Africa require specialised ventilation systems inside the vehicle” adds Peter.

Another growth area identified by the company is in ‘green’ transportation. As a result Transfrig recently launched its green natureFridge refrigera-tion system of 650 and 950 litre tank capacities available in various vehicle configurations. It is emissions friendly with a zero carbon emission on a daily basis, and if powered by liquid nitro-gen, it provides an alternative to the established diesel-fuelled option. The cryogenic natureFridge is designed for use on truck or trailer, supporting single or multi-temperature inside a container load. The natureFridge is most suited to the transportation of perishables but is well suited to the meat sector, where zero weight loss of transported meat is one of its unique features.

The natureFridge has low maintenance and running

Recently launched its new ‘green’ environmentally friendly refrigerated unit called natureFridge

Page 12: Supply Chain Today July2012

12 Supply Chain Today July 2012

COLD STORAGE

costs, has fast pull-down and tight temperature control even in extreme conditions, and is silent running.

As soon as there are four or more natureFridges in use by a customer, a liquid nitrogen tank must be installed at the customer’s premises making refuelling a more cost effective and efficient operation. The natureFridge, previously known as the EcoFridge, offers a solution for truck and trailer temperature controlled transport and is both effective in mono or multi temperature configurations. The natureFridge system emits between four and eight times less than a diesel driven unit depending on how the emissions are calculated.

Peter adds, “We have many years experience in transport refrigeration and invest heavily in research and development. Our track record for quality, reli-ability, and technical back-up is reflected in our continued sales growth, from 198 units in 2002 to an expected 1 150 units year ending 2012.

Africans who know the African market and its specific requirements and idiosyncrasies

Unit for rigid vehiclesAmong the Transfrig offerings are the Koolvan, a one piece bulkhead mounted transport refrig-eration unit for rigid vehicles and the Kooltube which is a latent heat storage system resembling a normal overcab unit as it is conventionally mounted above the cab of the truck – it is suited to repetitive daily delivery options and the tried and tested traditional diesel/electric option. Transfrig duel temperature applications are available either with the direct drive or diesel electric configurations.

Peter concludes, “We are pleased with our company market growth, which I attribute to our ability to change as trends and requirements change. We offer an in-house engineering design facility, nationwide back-up with 21 service networks with guaranteed spares availability; 24/7 standby and competitive pricing. We are a totally South African manufacturer, so we are Africans who know the African market and its specific requirements and idiosyncrasies.”Peter Solomon, Transfrig, Tel: (011) 608-0462,Email: [email protected]

Page 13: Supply Chain Today July2012

Supply Chain Today July 2012 13

Testing and feedback is a crucial step to ensuring we are meeting customers’ expectations

Rob Shaw

Expansion on the Cards

COLD STORAGE

Donovan Brent

D onovan adds, “Recently, we were ap-proached by Aspen Logistics to design a trailer combination with a 36 pallet capacity offering maximum loading

flexibility for dry goods. This included being able to accommodate rear loading, through and side loading as well as being able to load each trailer individually at docking bays.

“Our design team developed a sliding bogie con-cept, which was kept simple without the need for hydraulics or pneumatics. So when we say we listen, think, design and trial... we are able

to walk the talk and offer affordable and superior solutions to meet our customer requirements”.

Aerodynamic side skirtIn fact on trial at the moment, is a new innovative aerodynamic side skirt which Serco fitted onto two trailers. The side aero kit is expected to save between 3% and 7% fuel thereby reducing carbon emissions. What makes these side skirts different are their lightweight flexible plastic panels which are resilient when coming into contact with fixed objects. The panels also have a smooth finish for branding. The side skirts have been widely used in the United States achieving a 7.45% fuel saving during independent testing.

“It can’t be stressed enough that choosing the

“The transportation sector is very testosterone driven”, Donovan Brent, general manager and Rob Shaw, senior key accounts executive at Serco’s operation in Jet Park,

Johannesburg tell “Supply Chain Today”. The nature of the equipment and the rigours of the conditions in which they

operate make for a tough environment. “As a result we have to spend a lot of time on R&D to ensure we stay ahead of the game which is why several new senior staff members are now directly involved with the R&D team to accelerate our growth into the future. But we cannot do this without our customers support and input. Testing and feedback is a crucial step in

ensuring we meet customers’ expectations,” says Rob.

Page 14: Supply Chain Today July2012

14 Supply Chain Today July 2012

The side aero kit is expected to save between 3% and 7% fuel thereby reducing carbon

right specifications for a semi-trailer plays a big part in keeping overall running costs in check”, Rob explains.

Roll-up doorsAnother example is Whiting roll-up doors. Serco were recently appointed as the South African distributor for this product. The roll-up doors have proved popular since being introduced and can be utilised for both insulated and dry freight truck bodies. Advantages for the transporter are that the driver does not have to get in and out of the vehicle several times when docking to open/close and hook back the rear doors. With the roll-up door the vehicles can be reversed right up to the dock before being opened for loading which improves security," adds Rob.

If a vehicle panel is damaged, Serco offers a new temporary vinyl repair kit which can be applied to panel fracture and damage to prevent the infiltration of water, allowing the transporter to send the vehicle in for repairs when convenient. This has been well received by customers as this is an inexpensive way to prolong the life of the

vehicle bodies. The company also offers P-Eye tyre pressure sensors which provide a visual warning of low tyre pressure and markets the Ikhaya remote temperature monitoring system for refrigerated vehicles.

Expansion“Despite the recession, we have recently invested in a new property on the East Rand which will be used for future factory expansions. We believe there are opportunities to further develop our cross border and SADC region business”, adds Donovan.

Serco is SABS ISO9001:2008 certified and the product range includes refrigerated vehicles; fibre-glass dry freight vehicles; bread bodies; interlink volume combinations and special purpose vehicles such as day-old chick transporters.

“What we offer is a 36 month warranty, backed up with national support, technical back-up, pre-ventative maintenance solutions and our desire to offer precisely what the customer requires. This is the key to our success and the proof is quite visible by the continued increase in demand for our products,” Rob concludes.

Rob Shaw, Serco, Tel: (011) 397-8993, Email: [email protected]

COLD STORAGE

In case of shelving emergencies ... Call us.Universal Storage Systems, through the use of its

own research technology and highly trained engineers - plus access (through world-wide relationships)

to international expertise - has a reputation of being able to find solutions to most

industrial shelving problems. Universal, one of South Africa’s leading manufacturers of

industrial, commercial racking and shelving, markets a wide range of warehousing and

storage solutions.

For further information visit us on the internetwww.universal-storage.co.za

thinc 6356/3

Page 15: Supply Chain Today July2012

Supply Chain Today July 2012 15

T ypically, the process starts with the Ware-house Manager going to the Supply Chain Director who in turn briefs the MD – “we need a big new shiny warehouse” to grow

our business and service our customers.”

The MD usually knows somebody, who knows somebody, who is a developer or a friendly ar-chitect and who assures everybody he can build anything cheaply and efficiently, and he has land near the MD’s house. The developer with his architect in tow - is briefed. They make the right soothing noises. They assure all involved

they will provide a “world class” facility and they can produce a pile of pretty 3D sketches to show their capabilities.

Very quickly a proposal is presented, and a lease signed. Offices are developed and a “shed” attached to the end of the offices. With great gusto the earthworks start and the warehouse manager is informed that he will soon have his “world class” facility.

The warehouse manager then finds his local Logistics Consultant (that’s us). Now our nightmare starts. We are asked to create a layout and we ask our normal questions. Tell us about:

Truck run outs (hopefully someone understood how the truck will turn)

Staging areas (hopefully enough for receipt & dispatch)

Storage area (hopefully enough to grow) Column spacing (hopefully it is

compatible with the rack layout) Floor specification (hopefully

compatible with materials handling kit) Roof height (hopefully compatible with

picking & stacking methodology) Docking types (hopefully compatible with transport fleet – inbound & outbound) Lighting (hopefully right type, right colour and in right place) Doors (hopefully long-lasting types and right size) Ventilation (hopefully will provide proper ven-tilation & minimal dust) Fire protection (hopefully right level of risk and properly configured) Natural light (hopefully can see when sun shining) Insulation (hopefully right type, right fire values, etc) Battery charging (hopefully ventilated, protected & serviced) Power saving (hopefully lots of energy saving devices)

My Warehouse Nightmare

“I guess we all have our own warehouse nightmares – where you wake up sweating and hope you were dreaming. My nightmares usually happen while I am awake and happen often. It all starts with somebody out there deciding they need a shiny new warehouse – usually because they have

run out of space or are making an acquisition. Great – my favourite type of customer,” says Martin Bailey, Chairman of Industrial Logistics Systems.

WAREHOUSING

This is what you get when you leave the architect in charge

Martin Bailey

Offices are developed and a “shed” attached to the end of the offices

Page 16: Supply Chain Today July2012

16 Supply Chain Today July 2012

Waste management (hopefully someone remembered we generate waste), etc

The response initially is “don’t worry – we have taken care of all of these issues” – but when we pressurise the developer and his professional team we find that very few of these issues have been properly addressed.

Problems usually range around:

Truck run outs (not enough turning circle, wrong slopes, wrong paving, bad site access) Staging areas (insufficient space & badly configured) Storage area (not enough picking locations, insufficient growth, floor loading wrong for rack, racking not considered) Column spacing (not compatible with the rack layout) Floor specification (too many & bad joints, joints in aisles, bad design, not flat enough) Roof design (not high enough, not enough natural light, bad ventilation) Docking types (wrong dock levellers, badly configured, loading not compatible with supplier or customer needs, no integration with fleet) Lighting (wrong type, wrong lux levels, energy efficiency not considered) Doors (wrong type, wrong operation, wrong sizes) Ventilation (allow entry of dust, not fire com-pliant, not people friendly) Fire protection (wrong category, insufficient in rack protection, badly configured) Natural light (not enough, badly configured) Insulation (flammable and ineffective) Battery charging (not properly designed, ven-tilated, protected & serviced) Power saving (ignored potential energy saving devices) Waste management (forgot about waste com-pactors & waste removal), etc.

What then happens is the developer either rejects all our recommendations, saying that in his vast experience, having once visited a warehouse, none of our recommendations are viable. Alternatively he costs these changes and now substantially increases his rent. Either way, we end up being very unpopular and we become the “baddies” in this project. The fact that we have built over 400 warehouses, and clearly understand what works and what does not work, tends to be swept under the carpet.

The rest of the project is an uphill battle, where we try and modify the designs to improve the operations, the developer resists because it will cost extra, the architect resists as we are threaten his “good taste”, the engineers resist because they focus on the cheapest facility and not on operational efficiency (and life cycle costs versus capital costs) – and nobody is satisfied.

WAREHOUSING

In our experience, often the professional team has 90% of these items wrong. That means that we immediately clash with the developer and his team. They have no desire to redesign the entire facility --- and thus see us as a threat to their endeavours. Our nightmare is in now in full swing and we are wide awake.

There is worse to come – the developer and our customer have signed a lease at a “nice” rental and we (the evil Logistics Consultant) are ask-ing for terrible extras – such as a decent floor, good lighting, appropriate turning circles, proper docks, compliant fire systems and all those good things. Oops – the rental needs to increase by R10/m2 per month – what now?

The fact that the warehouse/factory is the prime income source of the company is often over-looked by all, and they are so overwhelmed by the excitement of moving to a big shiny offices, that the real bread and butter of the company is treated like to poor cousin. It gets worse, some-body forgot the budget for furniture for the new offices, and we are now told we need to use our old rack and old warehouse equipment. At that point the Warehouse Manager has a nervous breakdown and the Logistic Consultant resigns. The nightmare re-starts for their replacements.

The “happy dream” facilitySo how should these projects be tackled? How do make sure you get a decent facility at a rea-sonable price? The following is a brief outline of how you should execute the process.

Understand your Group’s long term supply chain strategy, business needs and tactics Now you have basis for your future and you go out and hire a competent Logistics Consultant. At this point keep far away from any architects, developers, estate agents, etc. The logistics consultant develops the ideal operations needed to execute the strategy. These ideal operations may be very different to your existing processes. The logistics consultant then creates all the planning, sizes, facilities requirements and infrastructure needs. Where should this fa-cility be located? How much space for future expansion etc? He also creates appropriate budgets, and creates a basis for corporate approvals. He thus first determines the processes and then is ready to wrap the facilities around the processes. You now need to make all the financial deci-sions – own or rent. Buy or build? Greenfield or existing? What length of lease do you want

Page 17: Supply Chain Today July2012

Supply Chain Today July 2012 17

(if you decide to rent)? How will the financial processes be structured? The logistics consultant then creates a detailed user requirements document – and a first pass “theoretical” site development plan. You are now ready to contact a bunch of develop-ers / property agents. You can then send a clear document to all potential vendors, and they will all be able to make offers based on the same foundation. You now have the ability to compare “apples with apples” from suppliers. Most importantly - by creating a competitive environment, you should also be able to reduce pricing from these developers/agents – by as much as 20%! You are now ready to tender and sign leases!

Thus if you want to create happy dreams and stamp out the nightmares, we suggest:

First the strategy, then the logistics design, then the specification and only then can you even start speaking to developers.

This formula will certainly turn my nightmares into happy dreams and contented clients.

Martin Bailey, Industrial Logistic Systems (Pty) Ltd, Tel: (011) 656-1100, Fax: (011) 656-2642, Email: [email protected], www.ils.c.za

WAREHOUSING

Page 18: Supply Chain Today July2012

18 Supply Chain Today July 2012

Companies seek-ing a strong, light-weight, recyclable alternative to a con-ventional bulk bag and wooden pallet, now have a new safe and reliable option – the Tellap pallet free packag-ing system. For the first time, there is an economically vi-able, sustainable, modern alternative to the inefficient wooden pallet.

“An inc reas ing number of leading bulk bag storage and transpor ta-t ion companies have invested in the cost effective Tellap system and are benefiting from reduced shipping costs, fuel savings, lower warehousing costs and ISPM15 compliance,” says Jonathon Johnstone of Tellap SA. “Con-ventional bulk bags and wooden pallets have dominated the transportation and storage of granular dry bulk products globally because there has not been a competitive alternative.

“Many disenchanted companies have cited increasing pallet costs, product contamination, safety concerns and the transportation of unproductive heavy bulky pallets, often weighing up to 30 kg, as impediments to business efficiency.

“Today there is an alternative - Tellap, the new lightweight, recyclable, space-saving packaging system, weighing less than 5 kg. This system offers enhanced safety, improved logistic efficiencies and easy implementation. The bottom line is this new packaging system saves companies and their customers’ money.”

Designed to replace the pallet and bag, the Tellap system comprises a proprietary

bulk bag with strong lightweight, plastic sleeves. The sleeves, integrated into the base of the bag become the pallet, allowing a forklift to raise the bag from the base.

Safety has been an important focus of the design of the Tellap system. The integrated sleeves, which act like outriggers on a canoe, increase stability during storage and transport, making the system safer for workers. Stacking three high, where legislation allows, utilises limited space whilst retaining stability.

Sustainability is also critical in a modern product handling system. Tellap is made of polypropylene and 100% recyclable. This system avoids waste and ensures a clean, safe environment.

Jonathan Johnstone, Tel: (031) 705-6668Email: [email protected] Website: www.tellap.com.au

Lightweight, Recyclable SystemAlien Systems & Technologies (AST

Africa) has announced the launch of the Astex range of vehicle fire suppression systems.

For more than ten years AST Africa has supplied cost effective and standards driven fire engineering solutions to the African continent as well as to many European countries. The com-pany offers an array of suppression and protection products including the award winning Pyroshield total flooding system.

Managing director, Paul Wright says: "There is very little AST Africa cannot protect, from Gas fire extinguishing systems, enhanced detection and con-ventional fire protection - our highly experienced and industry respected engineers are able to tailor make the best possible solution for business operating in almost any industry."

Pyroshield currently protects the buildings and server rooms of some of South Africa's biggest industry players while the Pyrogen in cabinet fire extinguishing system features in substations in mines all over the African continent. Wright says vehicle systems were simply the next step.

The protection offered by the Astex systems encompasses everything from small vehicles to large non-road equipment. The likes of excavators, drag lines, dozers, graders, under-ground mining equipment, buses, forklifts, medium sized commercial vehicles and four wheel drive vehicles for mine sites are all afforded the option to utilise the Astex system for maximum fire suppression and protection.

Three systems are now available to the African market and specifically designed to cope with the extremes of the African mining industry:

1. Astex Maxi Foam Fire Suppression System for heavy vehicles.

2. Astex Mini Foam Fire Suppression System for medium vehicles.

3. Astex Micro Foam Fire Suppression System for light vehicles.

Alien Systems & Technologies Grant Wilkinson Email: [email protected]: www.astafrica.com

Vehicle Fire Suppression Systems

MARKET FORUM

Page 19: Supply Chain Today July2012

Supply Chain Today July 2012 19

CoolTrak is a mobile wireless data traceabil ity system for securing the integrity of perishable goods with realtime data acquisition and monitoring, whether on-the-move or remotely located.

Designed by fourtec Fourier Technologies and marketed in South Africa by Impact Measurement Solutions, CoolTrak features four external sensor inputs. Data is transmitted online, with alarm

GS1 South Africa, the local custodian of bar codes to the retail industry, has warned South African retail businesses, suppliers and wholesalers about an unauthorised barcode seller that has recently begun soliciting business, of-fering prospective clients any bar codes they want, including several which are owned by GS1 Global.

According to GS1 South Africa execu-tive Jacolien Richards, the company is attempting to sell bar code numbers with a prefix of 600 or 604, or any other prefix, some of which belong to GS1 Global. South Africa has been assigned the prefix 600 and 601 and the 604 prefix belongs to GS1 Senegal.

“The numbering structure provided by the company consists of 11 digits. No bar code scanners in the FMCG supply

chain globally can read this structure,” explains Jacolien.

Cost of re-barcoding A supplier who buys this number will then apply it to all packaging and labels, but unfortunately the barcode symbol will never be scanned through the Point of Sale at a retail or wholesale location. “This means that the cost of re-barcoding all the products reverts back to the entire supply chain and ultimately could be carried by the consumer.”

The company also advises prospective clients that a barcode symbol can be stretched to “whatever size required”. A barcode symbol has extensive techni-cal standards and any manipulation of the symbol which is out of proportion will result in a no scan. “If the sup-

Mobile Cold ChainMonitoring

Fourtec cooltrak GPRS mobile cold chain

alerts sent directly to the customer’s control room on mobile phone via a GSM/GPRS modem. CoolTrak’s memory holds 59 000 samples taken at a rate of 1/second to 1/18 hours.

Coo lTrak p rov ides fu l l qua l i t y control throughout the cold chain to comply with the highest industrial standards. The unit will identify breaks in the cold chain as they occur, allowing proactive optimization of

plier is an exporter, the impact will be far worse with the distribution costs being doubled, because of the reverse logistics for returned stock that does not scan. This is compounded if the product is fresh produce, which will result in the loss of the entire order.”

If prospective clients are in any doubt about the veracity of the bar code Jacolien says that GS1 South Africa issues a certificate to all members. The certificate carries the Global Location Number (GLN) for the organisation. This GLN is registered in a Global Registry where anyone can access the GLN owners contact details. “If any doubt prospective clients should contact our offices immediately.”

Tracy Rieger, Tel: 0861 242 000Email: [email protected]: www.cgcsa.co.za

Unauthorised barcode seller

shipment loads and routes, ensuring longer product shelf life. Operating temperatures are from -20º C to 50º C.

External inputs are temperature PT 100 2-wire, thermocouples J, K, T and contact for switch/door position.

Additional inputs available are 4 – 20 mA, 0 – 1 V, 0 - 50 mV, frequency and pulse counter.

CoolTrak operates with the dedicated DataSuite modular software to enable

the user to view multiple data simultaneously, create

a n d g e n e r a t e r epo r t s , s end

SMS notifications, a n a l y z e d a t a

including dew point, FO pasteurization, histogram and

statistics with export to Excel and CSV formats.

For security, the DatPass user administration software enables the assignment of passwords and operating privileges.

Impact Measurement SolutionsKen Falconer 082 929 4128 Email: [email protected]

Cold Chain

Page 20: Supply Chain Today July2012

20 Supply Chain Today July 2012

Each OSR ShuttleTM system serves a series of goods-to-person pick stations, such as this one at the warehouse of British Gas in Leicester

Austrian-owned warehouse automation group, KNAPP, receives an order for the 10,000th shuttle to be supplied as part of its market-leading OSR Shuttle automated storage system.

The 10,000th shuttle will from part of

Shuttle Storage a solution for footwear giant, Clarks, at its new logistics centre in Hanover, Pennsylvania, USA, which will go live later this year. KNAPP pioneered the shuttle storage concept with the launch of the OSR Shuttle system back in 2002. The solution forms the bedrock of KNAPP’s ‘low-complexity warehouse’ concept, which aims to reduce the

number of different technologies within distribution facilities in order to minimise costs. KNAPP has continued to develop the OSR Shuttle solution and the latest generation is even more powerful, cost-efficient and flexible.

The new generation of OSR Shuttle makes it possible to store containers and cartons of various dimensions without having to use trays. This not only avoids the cost of the trays but also avoids time-consuming repacking processes within the warehouse. The shuttles can store loads of various sizes up to four deep and, with the possibility to store containers up to 800mm long two-deep, the OSR Shuttle offers the highest storage density of any shuttle-based system on the market. As well as unrivalled availability and reliability, the modular OSR Shuttle system is not limited in size, with solutions up to 30 metres in height and more than 100 metres in length by no means unusual.

With OSR Shuttle systems installed at more than 150 sites worldwide, KNAPP’s solution accounts for a massive 80% of shuttle storage systems in operation today.

Craig Rollason, Knapp Uk LtdTel: (018) 44 202149, www.knapp.com

MARKET FORUM

Page 21: Supply Chain Today July2012

Supply Chain Today July 2012 21

SAPICS REPORT-BACK

A brilliant presentation by Temitope Ogun-fayo, CPIM, Group Manager at Procter and Gamble in Nigeria, earned him both the Kingfisher Award for most innova-

tive speaker and the SAPICS Award for the best written paper from a practitioner. Temitope shared some profound, but very simple, well-tested and proven strategies with delegates to unleash their full potential by maintaining a healthy work life balance. “Achieving a better, personalised work

life balance is a global issue,” Temitope told the jam-packed hall of delegates.

Alan Milliken CFPIM, CSCP, Senior Supply Chain Education Specialist at BASF Group and the 2012 winner of the Terry Smee trophy for best speaker commented: “I have attended countless supply chain conferences over the years and the annual SAPICS Conference is one of my firm favourites. The conference offers an excellent blend of strategic, tactical and operational topics for participants.”

InnovationAny expectations of a powerpoint presentation

Africa’s Potential Unleashed

Once again the “Supply Chain Today” team set off to Sun City to attend the annual SAPICS conference and exhibition.

Page 22: Supply Chain Today July2012

22 Supply Chain Today July 2012

Susan Custers publisher of “Supply Chain Today” (left) with lucky draw winner Maryann van der Linde from Syspro

were swiftly laid to rest as the audience were immediately engaged in the passionate presen-tation from Prof Patrick Lumumba, Director/Chief Executive of the Kenyan Anti-Corruption Commission on the rising of Africa as a global force. “Supply Chain Today” was swept up in this engaging and thought-provoking presenta-tion, unable to avoid the barrage of red lights on cellphones indicating the recording of Professor Lumumba’s presentation, in which he expressed optimism over the fact that Africa will take her pride of place at the dinner table of human de-velopment inspired delegates which earned him an enthusiastic standing ovation. “All of us must arise, roll up our sleeves and be in the forefront of efforts towards establishing an Africa we all yearn for,” Patrick said. “After all, we are not the Cradle of Humankind in vain – we ignited the first fire! The time has now come for us to reclaim innovation and restore our dignity.”

Business resilienceA new addition to the conference was the Africa Café which was well-received by the conference goers. The highly interactive session focussed on sustainable growth in Africa and delegates were able to contribute ideas about how business resilience and sustainability are interconnected.

Delegates praised the exhibition segment of the conference. Not only did exhibitors showcase the latest services and products of the industry, but also delighted delegates with giving out varied and valuable prizes such as Apple I-pads, ASTL Certification exam sponsorships, GPS devices. Syspro were the recipients of a lucky draw spon-sored by “Supply Chain Today” magazine.

Exhibitors were equally delighted by the exposure their brands received. Says Almie Visagie, director of BTS, winner of the award for the best multiple stand unit and sponsor: “The SAPICS Conference and Exhibition enables corporates to broaden their reach, spread their message and, through increased exposure, integrate with a large variety of brands that make up our logistics management and supply chain.”

The award for the best single stand unit went to Pragma Africa whose innovative shoe shine man on the stand ensured maximum time with delegates.

The 35th Annual Conference & Exhibition will take place at Sun City from 2 – 4 June 2013.

SAPICS, Jenny Froome, Tel: (011) 023-6707Email: [email protected], www.sapics.org.za

SAPICS REPORT-BACK

Optimism over the fact that Africa will take her pride of place at the dinner table of human development inspired delegates

Page 23: Supply Chain Today July2012

Supply Chain Today July 2012 23

PROCUREMENT

Chair of CIPS Africa Strategic Advisory BoardCIPS is pleased to announce that Dr Douglas Boateng has been elected as Chairman of its Africa Strategic Ad-visory Board. This fol lows adoption of the One Africa strategy where the sub-Saharan Africa’s

operations will be managed from South Africa.

CIPS Africa Managing Director, Andre Coetzee says, "We are pleased to have Douglas assume the role of Chairman of the Strategic Advisory Board. As CIPS continues to rapidly grow and evolve on the continent, we believe that his appointment shall further provide strategic leadership, regional penetration, operating ethics and integrity."

Dr Douglas Boateng says, “It is an honour for me to be elected chairman of the Africa operations. CIPS has proved to be one of the most ethically-driven and fastest rising value adding professional organisation in the world. I shall be working closely with the regional Managing Director and each member of the Board to build a successful body that will fur-ther help to drive the procurement and supply chain management professional developmental agenda in support of Africa Union’ vision of an integrated, prosperous and peaceful Africa, and more importantly the eight United Nations Millennium Development goals.”

B y signing this MoU, the organisations will now officially work together in achieving joint objectives by:

MoU between CIPS and SOEPF

The Chartered Institute of Purchasing and Supply (CIPS) and the State-Owned Enterprise Procurement Forum (SOEPF) have a shared vision to become the benchmark of leading practice for purchasing and supply

communities and aim to ensure that all procurement and supply chain officials in Southern Africa have a licence to practice. Taking this vision one step further, SOEPF and CIPS SA signed a memorandum of

Understanding (MoU) between the two parties on Friday, 11 November 2011.

Douglas Boateng

professionalizing the procurement and supply chain profession;

upholding the code of ethics with honesty and integrity and;

collaborating with all communities and lobby-ing stakeholder ’s support.

SOEPF was formed in June 2004 and is a voluntary forum of Procurement/Supply Chain Management heads of the State Owned Enterprises.

Founder Members include: Denel, Telkom, Pe-troSA, SAPO, Eskom. Additional Members include: Transnet, SAA, SITA, Eskom, IDC, SARS, National Treasury, Metrorail, CSIR, Transwerk, Rand Water, Universal Service Agency, National Ports Authority, South African Rail Commuter Corporation, City Power, Umsobomvu Youth Fund, Armscor & NEF, ATNS, IDT and SASDA.

Owned Enterprises with the purpose of share best practices in Supply Chain Management within the SOEs, actively promoting and adhering to the Prevention of Corrupt Activities Act, advising SOEs with the reviewing, controlling, regulating, governing and managing of the implementation of procurement policies and procedures in the republic but more importantly promoting Procure-ment as being an integral part of the strategic function of any organization, thus promoting the procurement profession.

www.cips.org

Book Now for Sept 2012

Express freight industryTruckingGreen Supply Chain Awards Winner Announcement

Contact Lelanie Diamond on Tel ( 011) 781-1401, Fax: (011) 781-1403, E-mail: [email protected] to book

your advertising space

Page 24: Supply Chain Today July2012

24 Supply Chain Today July 2012

Page 25: Supply Chain Today July2012

Supply Chain Today July 2012 25

TRANSPORT & LOGISTICS MANAGEMENT

T his resonates with the theme of South Africa’s 8th State of Logistics survey, namely ‘Gearing up for Change’. The survey was released in May 2012 by the Council for

Scientific and Industrial Research (CSIR), Imperial Logistics and Stellenbosch University.

“The South African government’s increased focus on and investment in infrastructure development has seen more than R260 billion being set aside for transport and logistics projects,” says Dr Cornelius Ruiters, executive director of CSIR Built Environment. “The effective maintenance, expansion and management of our country’s

infrastructure will enable South Africa to compete at a higher level globally,” Cornelius notes.

Value creator“For logistics to become a competitive weapon for South Africa, change is required. We need to change from the mindset that logistics is merely the result of other market activity, to that of giving logistics its due as a value creator,” emphasises Cobus Rossouw, chief integration officer of Imperial Logistics.

“South Africa is a leader in complex, emerging and dynamic logistics environments and has achieved success despite geographical impediments, severe skills shortages and lack of economies of scale,” Cobus adds.

Macro-level logistics trends“This survey is one of only a handful of studies worldwide that quantify logistics costs using a modelling approach. The South African State of Logistics survey is recognised nationally and abroad as a premier reference for macro-level logistics trends in South Africa,” explains the scientific editor and project coordinator of the 8th State of Logistics survey, Nadia Viljoen of the CSIR.

“This edition provides an inside look into the

Amid change and uncertainty in global economies, a shift is seen towards emerging markets that have been more

resilient to the economic downturn than their counterparts in developed countries. South Africa is currently well positioned to shine as a global business partner, with the performance of

its logistics sector being a key determinant.

R260 Billion for Transport and Logistics Projects

Zane Simpson (Stellenbosch University), Dr Cornelius Ruiters (CSIR), Nadia Viljoen, (CSIR), Hans Ittmann (HWI Consulting) and Cobus Rossouw (Imperial Logistics)

Transport costs showed a drastic increase of 16.2% during 2010, compared with 2009

Page 26: Supply Chain Today July2012

26 Supply Chain Today July 2012

impacting on South Africa’s logistics costs, comprising 53.2% of the logistics bill. South Africa is a ‘transport-hungry’ economy; if transport is not given priority as a strategic planning imperative, it could become the Achilles heel of economic growth.

Research by Stellenbosch University confirms that transport costs showed a drastic increase of 16.2% during 2010, compared with 2009, while inventory carrying costs decreased by 19.9% during the same period. These changes are due to fuel prices hikes and greatly reduced interest rates, respectively.

Modal shift from road to rail neededThe shift required from transporting cargo by road to rail remains a concern. Dr Jan Havenga and Zane Simpson of Stellenbosch University have identified the uncertainty and risk relating to the fuel price as important for South Africa’s transport costs. Zane states, “A solution to mitigating the risk associated with transport costs is a significant modal shift from road to rail, but consideration should also be given to reducing transport demand.”

TRANSPORT & LOGISTICS MANAGEMENT

imcbeaite

Rca2in1careSouth Africa’s logistics costs as a percentage of GDP

research models, metrics and methodologies used to generate results. Comparing the reports published over the past eight years, one can track trends of a number of important logistics factors within the country,” notes Nadia.

Some issues highlighted in the 8th edition of the survey include:

Impact of transport costsTransport costs are the single greatest factor

Page 27: Supply Chain Today July2012

Supply Chain Today July 2012 27

Port access to marketsMaritime connectivity is a strategic issue, with not only volumes of cargo being important, but enhanced access being key. South Africa ranks 30th out of 162 coastal countries. It is in the same league as Brazil and India, and outperforms coastal SADC countries by far in terms of maritime connectivity, according to the United Nations Conference on Trade and Development. In addition, the Georgia Institute of Technology found that Durban and Mauritius are far better globally connected than other ports in SADC, with Durban being on par with the ports of Mumbai and Rio de Janeiro.

Crop revenue lossA case study measured the range of vibrations that fruit cargo undergoes when being transported from growers in Limpopo on gravel, provincial and national roads to Pretoria and Johannesburg.

Components of South Africa’s logistics costs

A comparison of the logistics costs as a percentage of GDP for South Africa and the USA

Modal contribution to land freight as a percentage of total tonne-kilometreModal contribution to land freight as a percentage of total

The wheat-loss due to vibrations is estimated to amount to R2.5 million per year

Small-scale farmers are more vulnerable to fruit cargo damage - they often do not have insurance and cannot absorb losses as easily as larger concerns.

A second case study found an incremental loss of income due to wheat-loss when transported on bad as opposed to good roads. The wheat-loss due to vibrations is estimated to amount to R2.5 million per year for South Africa.

“The South African logistics sector must proactively gear up for change. Uncertainties facing the local sector should be tackled head-on to maintain our reputation as a strong, emerging logistics performer despite massive challenges,” concludes the CSIR’s Nadia.

CSIR, Nadia Viljoen, Tel: (012) 841-3455, Email: [email protected]: www.csir.co.za/sol

TRANSPORT & LOGISTICS MANAGEMENT

Page 28: Supply Chain Today July2012

28 Supply Chain Today July 2012

Page 29: Supply Chain Today July2012

Supply Chain Today July 2012 29

ECONOMIES IN AFRICA

S even of the 10 fastest-growing economies in the world are in Africa. With such a

huge growth platform, the world eyes Africa as the next business destination says Dr Dinesh Kumar, associate director KPMG Services. All the household names and the biggest brands are mov-ing to or expanding on this continent. With huge mineral investments and a huge popu-lation base, its little wonder some investors regard Africa as the next wave.

However, the question in the minds of countless global CEOs seeking to set up their businesses in Africa is – ‘Where in Africa’?

While on one hand, the con-tinent-wide transition to AFTZ is happening at a slow pace (World Bank, 2012) and on the other

hand, economic growth in specific countries is fast, where should they focus in Africa? With 54 countries and 30 million km2 of land area, it’s a difficult question indeed.

Economic viewAfrica has seen myriad political and economic liberations, in the course of which, trade rela-tionships between countries are established, broken and re-established. While many African countries show tremendous growth, relations with next-door neighbours still count in the quest for sustainable growth.

Since only some African countries have stable infrastructure, connectivity (physical and inter-net), raw materials (mineral and other), labour, landmass and a customer base, they must always rely on regional collaboration to address their challenges.

Beware unseen barriers and limitationsThe continent today has a number of functional regional trade blocs. Of these, three are more functional than others, namely the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC). While these trade blocs overlap, with many members also belonging to the AFTZ, they also include members who do not belong to any alliances inside or outside the three blocs. Trade in such

Africa. But, Where in Africa?

With the talk of a continent-wide free trade and customs union by 2019, the African Economic Community (AEC) is even

considering establishing a common currency and a common market. The African Free Trade Zone (AFTZ) envisages 26

participating member countries, with a combined GDP of about $624 billion (2008 figure, BBC Business).

Figure shows the positioning of AFTZ relative to other trade communities (www.marginup.com)

Dr Dinesh Kumar

However, the question in the minds of countless global CEOs seeking to set up their businesses in Africa is – ‘Where in Africa’

Page 30: Supply Chain Today July2012

30 Supply Chain Today July 2012

Emerging economies in AfricaCOMESA has the largest number of the emerg-ing economies in Africa. Though it has its own challenges, the grouping is focusing on building regional infrastructure, particularly through the Eastern Corridor). Language is among the biggest barriers, with so many official languages and dialects, not to mention the regional spread of 19 member countries. To achieve efficiencies from this diverse set, is a considerable task.

The EAC on the other hand, is a rather smaller trade alliance with only five member countries and much greater integration and collaboration. While the structural complexity is different, be-tween these trade blocs, the somewhat similar maturity/stability (in terms of economic, politi-cal and public) of the member countries favours the EAC.

The commercial perspective is however one silo view to compare these trade blocks. The emphasis for a practitioner is more on supply chain potential that these two trade blocks offer.

Supply chain viewWhile COMESA has the resource base, the slow pace of trade between member countries is a concern. The custom setup is another. It takes a few hours to a few weeks to clear consignment at various custom points in COMESA. The differ-ent custom requirements and regulations impose further burdens on trade. In addition, the unavail-ability of technology and skills in the member countries hampers progress toward integration. A few African countries are near the forefront in proficiency, but others lag way behind.

The EAC enjoys the benefits of similar maturity levels and technology among member countries, with Kenya leading the pack. The fact that Kenya continued paying export duties for five years after establishment of the EAC (because of its relative prosperity), shows confidence in the maturity/stability of the agreement. The growth rates of various sectors in the EAC (led by agriculture, then manufacturing and services) are among the strongest on the continent (www.eac.int, World Bank 2005). Skills availability is still challenging – but the situation is better than that of COMESA.

Compliance is an area of concern among all the three blocs. Little has been done in this area. Besides concerns over compliance, Kenya, within the EAC, is an attractive destination. However, potential investors might consider access to a wider market and resource base with a relatively similar success rate, simply by operating in the whole EAC trade bloc. The EAC is still the best proposition for a new African supply chain foot-print for the next few years!

Dr Dinesh Kumar, KPMG, Tel: (011) 647-6968Email: [email protected]

Criterion COMESA EAC SADCGrowth in next two decades Strong Very-strong StrongComparative maturity/stability of the member states Not-strong Strong Strong

Availability of skills Not-strong Strong StrongUse of latest technology Not-strong Strong StrongGovernance/compliance with state and internal policies Not-strong Not-strong Not-strong

The commercial perspective is however one silo view to compare these trade blocks. The emphasis for a practitioner is more on supply chain potential that these two trade blocks offer

ECONOMIES IN AFRICA

complex arrangements (with multiple permuta-tions) can create unseen barriers and limitations.

While COMESA is the oldest and the largest and the EAC the youngest and smallest, the SADC is the most integrated of all the blocs. While these three trade blocs do collaborate to form the AFTZ, progress is slow. Therefore, for the next decade or so, all three will remain relatively autonomous entities. For the moment, SADC is the most suc-cessful trade coalition, but the next great spurt of economic growth will come from the other two trade blocs (World Bank, 2012).

Page 31: Supply Chain Today July2012

Supply Chain Today July 2012 31

T he Freightliner Argosy has been available locally since 2000, but in keeping with the Daimler Trucks philosophy of seeking technological improvements – particularly

where savings benefiting the environment can be achieved - the Freightliner has been ‘updated’, offering a more compliant engine to the local market.

Running smartly“Supply Chain Today” talks to Duncan Prince, product manager, Freightliner Mitsubishi Fuso Division. He says, “While the truck has been

a successful seller in South Africa, it definitely needed to be ‘refreshed’, so when the new look cab, interior design, transmission and engine systems became available, we updated the truck, and in doing so, we have ensured that it is also more efficient.

“We also took into account the South African Government’s proclamation that as from 1 July 2017 ultra-low sulphur fuels will be available, therefore we’ve ensured that our engines will be more emissions compliant, and the redesign also offers the engine better cooling. The new grill ar-rangement, for example, allows more air to flow through the radiator and underneath cab and so facilitates better cooling transmission.

The Truck with ‘Eyes’Daimler Trucks North America represented by Mercedes Benz South Africa has upgraded their Freightliner Argosy truck making it more emission efficient and offering an improved driving performance through the

utilisation of their new transmission system known as the Eaton Ultrashift Plus.

TRUCKING

Duncan Prince with the new freightliner at Mercedes Benz in Pretoria

Two-pedal instead of a three-pedal configuration, which relieves the driver of controlling the clutch on pull away

Page 32: Supply Chain Today July2012

32 Supply Chain Today July 2012

However, the biggest step forward, regarding fuel consumption, has been the introduction of the Ultra Shift Plus transmission ” says Duncan.

The new Eaton Ultrashift Plus transmission is a two-pedal instead of a three-pedal configuration, which relieves the driver of controlling the clutch on pull away. Gradient sensors allow the Freight-liner to ascertain whether it is on a gradient or a flat surface so as to select the optimal point at which a gear shift should be initiated, given the prevailing load and accelerator position.

The new generation Freightliner offers lower wear and tear, more efficient fuel consumption, while the faster gear shifts conserve momentum. If the truck is running against the engine compression brake, the Ultra Shift Plus transmission increases the down shift engine revolutions by around 200-300rpm and offers a 15-20% increase in braking capability.

Model enhancementThe new Eaton Ultra Shift Plus transmission is available in 13 or 18 speed configurations. Initially only the Cummins powered models are equipped with this technology, but the Detroit powered models will incorporate this enhance-ment in the fourth quarter of 2012 in the United

We understand the customer requirements better than traditional commercial banking outlets

States and in the first quarter of 2013 in South Africa. All Detroit Diesel models of the new gen-eration Argosy come with a five-year or 800 000 km engine warranty at no extra cost, excluding turbos and injectors.

Duncan adds, “Since we brought the support of the Detroit Diesel engines in-house over four years ago, we have seen an increased demand for these engines in South Africa”.

The Freightliner Argosy is an ideal truck for long haul applications. The vehicle is well suited to weight sensitive applications; refrigerated trans-portation and general freight such as palletised goods.

Competitive edge“The competitive edge of the Freightliner is the technical and dealer-network back-up. Obviously our dealership network is well trained offering the standards of maintenance and back-up expected from a company of our stature. Our unique fi-nance offerings, which are financed by Mercedes Benz Financial Services, are specifically geared towards the financing of commercial vehicles as we believe that we understand the customer requirements better than traditional commercial banking outlets.

“Our Truckstore outlet in Centurion, which special-ises in assisting customers with trading in their current commercial vehicle, has been very well received in the marketplace, and our Charterway service and maintenance packages are practically tailor-made to customer individual requirements.”

Research and developmentThe Daimler Truck Group invests heavily in research and development, often performed in the United States, Australia and South Africa among other locations. Duncan comments, “The Eastern Cape has one of the toughest road environments in the world, and is one of the validation test facilities for our commercial vehicles. While research and development may be conducted initially overseas, our operations in East London are regularly utilised to test the new innovations, not only for South African conditions, but for global environs as well, due to the rigours involved in transportation infrastructure in the Eastern Cape.

Advanced transmission“The fact that there are over 8 000 Freightliners on South African roads at present says some-thing about their reputation for reliability and meeting a variety of diverse customer needs. It is assembled in East London, and comprises local and international components. Due to the advanced Eaton Ultrashift Plus transmission and its gradient sensors we call the new Freightliner Argosy ‘the truck with eyes’,” concludes Duncan.

Duncan Prince, Freightliner Mitsubishi Fuso, Tel: (012) 677-1500, www.Fuso.co.za

TRUCKING

Page 33: Supply Chain Today July2012

Supply Chain Today July 2012 33

S upply Chain Today” had the opportunity to net-work to several of the speakers and delegates.

Nenad Pacek, founder and president of Global Success Advisors GmbH, presented an in-depth

focus on the major economic mega-trends that will shape the world economy in the next few years, how the developed world will perform and what that impact will have on emerging markets.

Abdullah Hassen Verachia from Frontier Advisory, provided his insights into the problems and issues that can arise when sourcing from an emerging market, including using an unknown and untested supplier base, finding significant variations in material avail-ability and quality, confronting social responsibility issues, encountering language barriers and cultural differences, and facing trade restrictions, all of which are encountered in general business and supply chain when sourcing from Asia.

Dinesh Kumar, associate director, from KPMG Services, expertly summed up the final session. He advised that when trading in Africa, don’t pick a country. He sug-gests that companies pick one of the five recognised regions on the African continent and clearly understand the governance policies, risks and compliance which all make for a tight framework.

Marelize Hoffmann Imperial Logistics, Tel: (011) 821-5500, Email: [email protected]

Pick a Country

Left to right: Shaun Black, Kyle Matthews, Pieter Jacobs, Werner Pelser from Mr Price Group Limited pictured at the conference

The recently-held conference by GIBS, in partnership with Imperial Logistics, provided

a day of special insights into doing business in dynamic markets emerging economies both in

Africa and other parts of the world.

EMERGING MARKETS

Carbon Neutral

Loads up to 1.5t

Moves easily in tight spaces

GREEN PRODUCT

1.5t ELECTRIC PALLET TRUCK

Charges directly from mains

.. and the t Chinese product to win Europe’s

prestigious Red Dot Design

Award

Low Cost

From hand-operated pallet trucks to 40+ ton forklifts.

Materials handling solutions that shift loads safel and e cientl .

At prices that make sense.

Page 34: Supply Chain Today July2012

34 Supply Chain Today July 2012

Cargo Carriers lunched an empowered joint venture that’s armed with the fuel industry’s latest technology.

Together with Caltex Mpumalanga North Marketers (CMPM), Cargo Carriers has once again founded an empowered fuel transport company, Sitanani Carriers.

Sitanani Carriers fleet comprises newly designed, specialised Sealed Parcel Delivery (SPD) vehicles. The SPDs are also kitted with electronic temperature compensated metres. This gives Si-tanani Carriers the flexibility to make metre-based and non-metre based drops, as well as straight drops of up

to 45 900lt as well as multi-drops. The fleet includes five semi-trailers and one rigid drawbar tanker which once gives it the flexibility to drop fuel at smaller, difficult to access sites.

A fully integrated web-based tool, ePOD enables total visibility across the supply chain for fleet managers and customers alike. It notifies service stations to prepare for deliveries; cuts lead-time from the transport process and provides instant POD’s to enable more efficient management of working capital for CMPM. Beyond near-real time online tracking, ePOD eliminates

Transport solution for fuel outlets

debtor delays by transmitting signed proof of delivery the moment goods are received.

“This equity partnership allows us to further expand our footprint in the fuel industry, and opens up opportunities for us to partner CMPM in their ex-pansion, and to work with other fuel companies interested in contracting out their last mile distribution,” said Andre Van Vuuren – Marketing Director of Cargo Carriers.Cargo Carriers, Andre Jansen Van VuurenTel: (011) 485-8700, www.cargocarriers.co.za

UD Trucks Southern Africa has whole-saled 67 units of which 20 where retailed in April of its new Quon Extra Heavy range during the first month of it becoming available in South Africa.

According to Johan Richards, UD Trucks Southern Africa’s CEO, the company is excited about these results as the company use to retail an average of between 44 and 50 of the equivalent model variants per month in the past.

“With the launch of the new range, the company aims to increase its market share in the EHCV segment to 12%.

In addition, as the country’s top truck exporter in 2011, we are targeting an expansion of our current volumes into our export territories,” said Johan.

He said that UD Trucks has increased the number of Quon variants to 14 to cover more sub-segments within the EHCV market to meet market and customer demands. UD Trucks’ April EHCV sales consisted mainly of GW26 490 6x4 truck tractors and GW26 410 6x4 truck tractors.

In 2011, the local EHCV segment grew by 35.41% year-on-year to 11 503 units, with UD Trucks securing a 9.4% market share. The company anticipates this section of the market to reach a total of 12 932 units in 2012 – a forecasted growth of 10.96%.

“With several advances in especially the range’s cab, engine, transmission and suspension, we believe the new Quon range is the culmination of all our efforts and 50 years of experience in the country to provide South African customers with the very best in extra heavy trucking,” said Johan.

UD Trucks, Rory Schultz, Tel: (012) 564-9500, Email: [email protected], www.udtrucks.co.za

Expansion into export territories

MARKET FORUM

Don’t Miss OutBook Now!

Contact Lelanie Diamond on Tel ( 011) 781-1401, Fax: (011) 781-1403,

E-mail: [email protected] to book your advertising space.

www.promech.co.za

Page 35: Supply Chain Today July2012

Supply Chain Today July 2012 35

Vaimo recently opened offices in South Africa, is the country’s first and only gold certified Magento solution provider. Magento, owned by eBay, is an eCommerce platform which allows any company to deploy a complete commercial website in a matter of days or weeks, while providing full self-management capabilities to add items, create special offers, manage stock and more.

According to Brendan Peo, COO of Vaimo, many medium-sized companies in southern Africa can benefit from the addition of a web shop to their sales force. “Whether selling direct to the consumers (B2C) or to businesses (B2B), an online web store brings substantial benefits,” Brendan says.

“These are realistic concerns; particu-larly given the economic environment today’s business manager is trying to navigate. Companies simply can-not afford to take the financial and operational risks that they were able to during boom times. The good news is that Viamo has broken down these barriers with the use of the Magento eCommerce platform. Magento is de-signed for easy deployment and easy management, giving your business the ability to sell online without the need

for major management or administra-tion,” says Brendan.

As for those companies who have held off from opening a web shop because of the difficulty of gauging whether sufficient sales will be achieved to justify the expense and work required to maintain such a presence, Brendan says Viamo’s Magento-based solution introduces a level of affordability that advances the business case substantially.

In seeking an appropriate solution for companies across southern Africa, Kevin Clarke says Magento stood out for several reasons. “Primarily, it is easily deployed and offers self-management - very important for most clients - and with a large developer community, a wide range of add-ons are readily available. The second factor is that it is experiencing substantial growth internationally as many companies recognise the value proposition it offers.”

In terms of features, he says there are many, but the design for search engine optimisation stands out. “Having a web shop is one thing; having one which your customers can easily locate is quite another,” Kevin observes.Vaimo South Africa, Kevin ClarkeTel: +27845817422 Email: [email protected]

Enabling eCommerce can be easy and affordable

HD65 and HD72 are tough, more stylish, comfortable and dependable – which makes it the perfect vehicle for the demands of the trucking business.

These two trucks in the new Hyundai HD series look good, without losing the attributes of toughness and durability to do the work. They have also been

engineered to be safe and reliable to keep a business on the go with

a minimum of downtime.

And to make the HD series even more comfortable and efficient to operate for both the driver and the owner, Hyundai has built several fresh and

useful new features into the HD series that will make

it a favourite with many businesses and entrepreneurs.

Tel: 086-142-7222, www.hyundai.co.za

Minimum Downt ime

Multiple Connectivity High Availability

Data Centres

The upgraded Hyundai HD series intro-duced to the local market by Hyundai Automotive South Africa brings a new dynamism and capability to the light and medium duty trucks. The new

Local IT solutions specialist Imperial Online has completed one of the largest data centre relocation projects. With a data centre in which partner Vodacom has granted access to two other telecoms vendors – namely Broadlink and Telkom.

Imperial Online managing director Derek van Heerden says that the need for multiple connectivity options was a key factor in the company's decision to partner with Vodacom when it decided not to reinvest in its own ageing data centres. “We needed to provide for multiple network vendors to service Imperial Online customers, in order to ensure fail-over ability between data centres, as well as additional redundancy in the related connectivity. This is becoming increasingly criti-cal for our customers as their business systems become more mission critical. While the other vendors reviewed only offered their own networks as a complete solution, Imperial Online was able to negotiate with Vodacom for two other telecoms partners to provide data connectivity solutions from within the Vodacom data centre, thus not restricting our customers to a single vendor. Broadlink and Telkom lines have been permitted to ter-minate in the Imperial Online cage inside the Vodacom data centre. With fail-over built into every aspect of the data centres' design and connec-tivity, and multiple fail-over scenarios catered for, this is a truly unique service offering in South Africa,” Derek stresses.

Marelize Hoffmann, Imperial Logistics,Tel: (011) 872 5500,Email: [email protected]

Page 36: Supply Chain Today July2012

36 Supply Chain Today July 2012

Bulugaya Engineering, located in North Riding, Randburg, recently took on and met a very tight schedule to build seven Hino-based bullet resistant cash-in-transit (CIT) vehicles for Fidelity Security Services.

The challenge occurred at a time when Hino SA had built out the previous Hino 300-Series 611 model and was ramping up production at its Prospecton plant, near Durban, of the all-new 300-Series where the classification has changed to 614 in line with a change in specification.

The production team at Bulugaya Engineering worked with two different cabs, as one of the major changes on the new Hino 614 is a totally new-look cab that has

Tight Deadline Met For Cash-In-Transit Vehicles

a strong family resemblance to the Hino 500- and 700-Series models.

Bulugaya built the last Hino 611 CIT vehicles, using the previous generation cab, as well as the first to build such a unit using the all-new 614 model. Three of the vehicles were built on the 611 chassis-cab and four on the new 614 underpinnings.

Bulugaya has been building bullet resistant armoured vehicles for the cash-in-transit industry since 2004 and has built more than 300 of these units, most of them on Toyota Dyna 4-093 or Hino 300-Series chassis-cab platforms.

Ignatius MuthienTel: (0)11 809 2064/2255Fax: (0)11 809 9064Email: [email protected]

Ranking as one of Durban’s largest leasing deals of its kind in the Durban port area, Growthpoint Properties Limited has concluded a transaction with Bidvest Panalpina Logistics (BPL) for 20,767sqm of prime light-industrial space in Rossborough, near the Durban Port in KwaZulu-Natal, in a deal valued at over R52 million.

“A lot of our business is port-based. In addition to the consolidation of our facilities providing economies of scale, Growthpoint Properties’ Rossborough site has fantastic access to the Durban container terminal – especially with the Khangela Bridge which now connects Bayhead Road to Rossborough,” says David.

“Durban has a number of older industrial nodes which still enjoy huge user demand as a result of their superb location, specifically those with proximity to the port,” says Greg de Klerk, KwaZulu-Natal Regional Head of Growthpoint Properties.

“The benefits of redeveloping properties in these nodes are inherently attractive. This is further enhanced by the general lack of land available for new industrial developments.”

“Refurbishments can be undertaken to tenant requirements, providing a facility which meets their specialised criteria while enhancing the value of the property,” points out Greg. “Working together, Bidvest Panalpina Logistics and Growthpoint have maximised this opportunity”.

In order to create a workable warehouse for handling, internal walls were removed to improve the flow of the facility, flooring was upgraded and roof height was increased in selected areas, with the guidance of Peter Reis Architects and construction work carried out by JT Ross.

“The complex logistics of the project were superbly handled by everyone,” notes David. “We now have a logistics park which has hugely improved our operations, comprising our established and new facilities in Rossborough with a spacious yard area surrounding both warehouses.”

Greg De KlerkGrowthpoint PropertiesTel: +27 315845118

Prime 21,000sqm Durban Port redevelopment

MARKET FORUM

Page 37: Supply Chain Today July2012

Supply Chain Today July 2012 37

In order for the South African steel construction industry to be competitive in Africa – where the world’s next major economic growth spurt will occur - and especially the sub-Saharan region, there will have to be some important changes including the simplifying of border crossings in the SADEC region, infrastructure improvement around these borders and beyond, greater business innovation and the development of a ‘South Africa Inc.’ mentality within the local industry, says Mike Lomas, chairman of the Southern African Institute of Steel Construction (SAISC).

“We may not see the business activity levels of the boom of 2010 for a while

yet, but the dramatically growing GDPs of many key African countries is palpable and it is in these countries where our companies must be doing business,” Mike says.

“Currently the situation is untenable with trucks often having to wait for days before they are processed adding significant cost to the delivered price of the product. If South Africa wants to compete against the Chinese and others, it simply must reduce the cost of doing business and the border issue is crucial in this regard.

“Also, the road infrastructure around the border facilities and, of course, in the region as a whole should be improved as costs, through both time lost and physical damage to vehicles and product, are currently exorbitant,” Mike says.

“We will have to do things differently, more innovatively,” Mike says. “For example, when the Chinese get an order they make the steel and ship it to the customer. There’s no room for flexibility. But because of our locational advantage and because it’s perhaps part of our business culture to be more malleable we could offer more flexible, ‘tailor-made’ solutions to African clients making it considerably easier and more attractive for them to conduct business.

“Also, our innovation will have to extend to the renewable energy field. The

African Explosion

Mike Lomas, Chairman of the Southern African Institute of Steel Construction

Truck and bus supplier, Man Truck & Bus SA and its financial services partner, Man Finance, have launched an empowerment financing scheme in conjunction with the Industrial Devel-opment Corporation (IDC).

The R100 million fund facilitates long-

optimisation of OPEX through reduction in energy and water costs by, inter alia, putting the power source close to the end-users and introducing more energy and water efficient technologies is the way it will be done in an Africa that is not only vast but also has very poor infrastructure,” Mike says.

“It is clear that South Africa’s financial disciplines were solid, preventing a complete meltdown. Specifically in the steel construction industry, while there was a reduction in demand for steel products globally and in South Africa many projects were put on hold, we did not feel the full negative impact mainly as a result of the World Cup and the advent of major power stations.

“Cer ta inly this di f f icul t per iod demonstrated very clearly the extremely high level of expertise and competence in the local steel construction industry, which augurs well for a future filled with various opportunities. The current unknown factor in terms of these opportunities is the government's planned expenditure on infrastructure and its willingness to act on it - although after President Zuma’s State of the Nation address there was some cautious optimism in this regard,” Mike concludes.

SAISC, Dr. Hennie de Clercq,Tel: (011) 726-6111, Email: [email protected]: www.saisc.co.za

term vehicle rental transactions for emerging black truck and bus transport operators and is geared to promote sustainable SME growth within the transport sector.

To comply, candidates need a 25.1% BBBEE shareholding, proof of solid

working experience in the bus/truck in-dustries, a bankable transport contract and/or a viable busi-ness plan. They will also need to furnish proof of working capital to cover the period leading up to the first payment by their contracted customer.

“Applicants need to commit a deposit of between 5-15% on the vehicles they procure from Man,” says Man Finan-cial Services national sales manager, Elmarie Smith.

The partners to the initiative share the risk burden, underwriting it on a 50/50 basis and would be offering individual operators funding up to R10 million. Elmarie says ideal candidates for the scheme are fleet operators running 5 to 10 vehicles.

“Used buses must be no older than six years with less than 400 000 km, while used trucks must be less than five years old with 400 000 km or less on the clock. Trailer financing cannot exceed 10% of the fund amount,” Elmarie says.

Man Financial Services (SA), Tel: (011) 387-1940,

New R100m SME Empowerment Fund

37

Page 38: Supply Chain Today July2012

38 Supply Chain Today July 2012

Acrow 30Apex Strip Curtains 8Criterion 20Goscor Outside Front/Back CoverImperial 24Linde 12Manhand 33 Manitou 28Materials Handling Direct 6Nissan 26Scania Inside Front CoverToyota Inside Back CoverUniversal Storage 14Zetes 17

Index to Advertisers

On the Move

Transnet National Ports Authority has announced the appointment of Herbert Msagala as General Manager: Port Operations effective June 2012.

Criterion Equipment, a wholly owned subsidiary of Invicta Holdings Limited, has made the following appointment announcements: Peter Marnewick is branch manager, Cape Town and Arthur MacAllister is branch manager, Pretoria.

Jaco Dauth has been appointed Depot General Manager for TNT Express Worldwide Namibia.

The Board of Directors of Scania has appointed Martin Lundstedt new President and Chief Executive Officer of Scania AB. He takes up his new position on 1 September 2012 and succeeds Leif Östling, who has been ap-pointed member of the Board of Management of Volkswagen AG. Changes will also be made in Scania’s Executive Board on the same date.

In the Executive Board of Scania, in addition to Martin Lundstedt, Jan Ytterberg, Chief Financial Officer, and Christian Levin, Head of Sales and Services Management, remain in their current positions. Per Hallberg, currently Head of Research and Development, Purchasing, has been appointed Head of Production and Logistics. In his new position, he succeeds Anders Nielsen, who has been appointed Chief Executive Officer of MAN Truck & Bus AG.

The member of the Executive Board and Head of Research & Development, succeeding Per Hallberg, will be Dr, Harald Ludanek.

Henrik Henriksson, has been appointed new member of the Executive Board and Head of Franchise and Factory Sales, succeeding Martin Lundstedt. Henrik In a new position on the Executive Board, Andrea Fuder, has been appointed Head of Purchasing. In an additional new position on the Executive Board, Kent Conradson has been appointed Head of Human Resources.

Peter Marnewick Arthur MacAllisterHerbert Msagala Jaco Dauth

MARKET FORUM

Per Hallberg Christian Levin Harald Ludanek Henrik Henriksson Andrea Fuder Kent Conradson

Martin Lundstedt Jan Ytterberg

Book Now for 2012

Contact Lelanie Diamond on Tel ( 011) 781-1401, Fax: (011) 781-1403, E-mail: [email protected] to book your advertising space.

www.promech.co.za

OCT 2012 Warehouse Management Systems and Inventory control Security including fire prevention, fuel theft etcTransport management incorporating routing and scheduling

NOV/DEC 2012

Supply Chain Software incl. ERP, MRP, Scheduling, Forecasting etcExpress freight industryFocus on supply chain in the trucking industry

Page 39: Supply Chain Today July2012

Supply Chain Today July 2012 39

&

INTRODUCING

THE NEW SMOOTH OPERATOR

MAXIMUM SMOOTH.

TEL WEB

TOYOTA FORKLIFT BRINGS YOU OUR NEW BATTERY POWERED FORKLIFT WITH:

Page 40: Supply Chain Today July2012

40 Supply Chain Today July 2012

LIFT TRUCKCOMPANY