Supply Chain Today May2012

Supply Chain Today May 2012 1

www.goscor.co.za

2 Supply Chain Today May 2012

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

Trucks / Buses / Engines / S cania Finance & I nsurance / Ser v ices

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Scania New Engine Range Advert.pdf 1 3/20/2012 11:29:40 AM

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May 2012

Contents

Proprietor and PublisherPROMECH PUBLISHINGTel: (011) 781-1401Fax: (011) 781-1403BEE rating: 168.75%E-mail:[email protected] Website: www.promech.co.zaManaging Editor: Susan CustersAdvertising Sales:Lelanie Diamond

Production Manager: Zinobia Docrat

DTP: Donovan Vadibalu

Administration and Circulation Manager: Catherine Macdiva

Printed by:Typo Colour PrintingTel: (011) 402-3468

FSC (Forestry Stewardship Accreditation)

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.

DisclaimerWhile every effort is made to ensure accurate reproduc-tion, the editor, authors, publishers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publica-tion, 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 A Feather in the Cap

Racking & Shelving7 Hands-on Design9 Ready to Rock the Market

Cold Storage11 Effectively Controlling Energy Consumption13 New Solution, New Growth

Trucking14 Smart Breed of Extra Heavies

Market Forum — Unit 17 Market Forum - Unit

Industry Insight21 Ready for Action

Scheduling System25 An Up-Tempo Change for Coal

Software28 Taking to the Cloud

Outsourcing31 Freight Forwarding Goes Global

Manufacturing33 Growth Positioning

Market Forum — Supply35 Market Forum - Supply

Endorsing BodiesAfritag (div of Smart Card Society

CGCSA (Consumer Goods Council of SA)

CILTSA (Chartered Institute of Logistics & Transport: SA)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 members of the Road Freight Association

Featured on the cover:

Goscor Lift Truck Company

Tel: 0861 GOSCOR (467-267),

Fax: (011) 976-2176 [email protected],

www.goscor.co.za

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

Trucks / Buses / Engines / S cania Finance & I nsurance / Ser v ices

New Scania engines. HERE TO MAKE A DIFFERENCE.

Everything starts with your needs. That’s why wedesigned our new engines to meet every aspectof performance, from drive ability and operating economy, to emission control.

-

-

Share your ambitions with us and together we can optimise a powertrain solution that makes a di�erence for you.

Enjoy the ride.

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CM

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Scania New Engine Range Advert.pdf 1 3/20/2012 11:29:40 AM

mailto:[email protected]

http://www.promech.co.za


http://www.goscor.co.za


P ick n Pay’s Elzette Watson says that after the very positive experience at the com-pany’s Longmeadow distribution centre (DC) in Edenvale, Johannesburg, there

was no hesitation in ordering the equipment from Goscor for Pick n Pay’s DC at Phillipi in the Cape Province.

“We are very satisfied with the performance of the machines and equally satisfied with the service of the Goscor team. They are prepared to go the

extra mile to ensure that any issues are dealt with fast and professionally,” she says.

Elzette adds that being able to standardise on Crown throughout the group is also a distinct advantage. “Once the product and service is at high levels it is significantly more efficient to standardise.”

Follow-up The most recent deal comprised 67 Crown units and included: 3-wheel electric counterbalance forklifts, 4-wheel electric counterbalance forklifts with clamps, reach trucks, low-level ride-on order pickers, short-fork ride-on power pallet trucks and long-fork ride-on power pallet trucks.

Goscor Lift Truck MD Darryl Shafto says that he is delighted to have received the Cape Town order from Pick n Pay. “Getting the ‘follow-up’ order from a company like Pick n Pay is a feather in our cap,” he says. “They are a consummately professional organisation and the DCs are crucial to the success of their business. Getting such an important repeat order is a vote of confidence in our company and we are genuinely proud.”

A legendMeanwhile Goscor ’s service ethic has become somewhat of a legend in the local industry and this is not surprising given Darryl’s philosophy of business. “The quality of the machinery is the entry level as far as I’m concerned. If you haven’t got reliable, robust technology you may as well not be in the game. The real value is created through the quality of one’s after sales backup and technical expertise. No matter how reliable one’s machines are, there’s going to come a time when something happens that requires service and it’s the speed and reliability of service that makes all the difference,” he says.

Elzette concurs saying that in the warehouse business one of the crucial factors for success is the minimisation of downtime and the service received from a supplier is crucial in that equa-tion. “Our distribution warehouses are non-stop, intensive operations and the smooth operation of the lifting equipment is an essential,” she says.

Investment piecesDarryl adds that Crown has become famous for its operator-friendly designs, which result in tan-gible productivity gains that provide substantial

Pick n Pay has made another large purchase of warehouse equipment from Goscor Lift Truck Company. This brings the

total to more than 500 Crown electric material handling machines bought by the retailer from Goscor.

Darryl Shafto, Goscor Lift Truck MD, with some of the equipment supplied to Pick n Pay by his company

COVER STORY

Getting the ‘follow-up’ order from a company like Pick n Pay is a feather in our cap

A Feather in the Cap


life-time cost advantages.

“Every piece of material handling equipment should be considered an investment and Crown machines have shown time and again that over their operating life they deliver significant returns on investment,” he says.

Reach trucks, so crucial in the modern space sav-ing warehouse environment, were an important part of the Pick n Pay mix and 17 Crown ESR’s were part of the latest order.

Optimum combination‘Maximise the number of pallets moved at the lowest cost’ is Darryl’s maxim and there’s nothing better in this regard than the Crown ESR series of reach trucks. “It’s not enough to have the fast-est travel speed, best lift/lower speed or efficient energy consumption, you need the optimum combination of these performance factors and the ESR series has achieved this like no other.”

The ultimate goal of the Crown designers and engineers is to offer the highest level of reach truck performance while minimising energy consumption. It was not enough to integrate advances such as AC motors, electric steering or CAN-BUS electronics. Crown’s innovative ap-proach to fine tuning and controlling all these systems simultaneously, is what sets the ESR range apart from the competitors.

Best practiceDarryl says he is pleased to have supplied this important warehouse with machines capable of enhancing operational efficiencies at its new distribution centre. “We have worked closely with the Pick n Pay team over the years and they have helped us develop a unique insight into their business requirements.”

Since its inception in 1984, Goscor has not only provided best practice industrial solutions, it has also created authentic partnerships with its custom-ers, suppliers and principals. This, coupled with its market-leading Crown and Daewoo products, has helped the company show exceptional growth every year to become one of the leading suppliers in the materials handling industry.

“I think that our overall Goscor experience thus far can be summarised as ‘value for money’. By that I mean that we get excellent technology and service at competitive prices,” concludes Elzette.

Darryl Shafto, Goscor Lift Truck Company Tel: 0861 GOSCOR (467-267), Fax: (011) 976-2176 Email: [email protected], www.goscor.co.za

COVER STORY

Maximise the number of pallets moved at the lowest cost’ is Darryl’s maxim


http://www.goscor.co.za


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This wholly-South African owned company specialises in all aspects of light and heavy duty racking and shelving systems, mezzanine floors, warehouse and stores

design - any area in need of efficient storage space usage.

The company’s manufacturing facility in Kya Sand offers major advantages, buffering it against foreign exchange issues and speeding up delivery times. Products are custom-designed and depending on the type of application, they can be powder-coated or galvanised (either hot-dipped or electro plated) to prevent corrosion. “We then install and oversee the complete project until completion to the customer’s satisfaction,” says Yvan.

The design processWhen designing racking and shelving for a new warehouse, Formrack’s staff takes into account the client’s needs: the type of product, movement, loads and the type of house-keeping.

Yvan explains that they try to get involved with architects in the early design stages of a building or warehouse to allow for the most efficient usage of available space. All the products are engineer-

certified and custom-ers are assured that they have been exten-sively tested for their specified capacities.

Racking African notchesThe company sup-plies the whole of southern Africa, un-dertaking projects in South Africa, Zambia, Mozambique and Bo-tswana across differ-ent industries, par-ticularly in mining. “We also do quite a lot of work in Tan-zania, Uganda, Ivory Coast, Namibia and Mali. The number of projects happening in Africa are on the increase.

“We usually send a team of specialists in and use local labour where possible, as it provides an economic boost for that country,” adds Yvan.

Locally, Formrack undertook a project for a govern-ment department through one of their customers, requiring 48 000 shelves, situated in a 18m-high

Hands-on Design

They can be powder-coated or galvanised (either hot-dipped or electro plated) to prevent corrosion

“Our highly efficient and experienced in-house design team creates ‘space’ from scratch, no matter how large, small or where the storage requirements are,”

Formrack Dexion MD, Yvan Mahieu tells “Supply Chain Today”.

RACKING & SHELVING


racking supported structure with six mezzanine levels. Installation took just over a month, despite strikes putting a spanner in the works.

The company also undertook a project for AVI - National Brands in Isando, installing in the region of 17 000 beams, over a period of seven weeks.

Formrack offers adjustable pallet racking (includ-ing narrow aisle varieties), drive-in racking, push back racking, mobile racking, live dynamic flow racking, cantilever racking, light duty (minirack) racking, slotted angle type shelving, office shelving and mobile shelving, as well as a wide range of accessories to suit various storage requirements.

Yvan says that one of their best selling products is a cost-effective racking system called the ‘Racklock’ system. “We carried out comparative tests against existing brands of racking and our product proved to be extremely efficient,” he adds.

They try to get involved with architects in the early design stages

RACKING & SHELVING

New releaseMeanwhile, Formrack’s revenue is on the in-crease annually and could be set to continue with the release of three exciting racking and shelving products this year. “The products will have increased loading capacity and be more cost efficient, aimed at all sectors. They have also undergone stringent testing,” says Yvan. However, Formrack’s keeping the new product details under wraps for now, until it is ready to release the products onto the market.

The manufacturing facility has invested signifi-cantly in research and development (R&D) and independent testing of their products through independent agencies and all the test reports are available to its clients on request. “We probably do more testing than many other companies,” he concludes.

Formrack Dexion Tel: (011) 462-9061, Fax: (011) 462-9041,Email: [email protected] www.dexionformrack.co.za


http://www.dexionformrack.co.za

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T he company will be concentrating on its core and biggest division, Symo Storage, which designs, manufactures and installs racking, shelving, mobile filing systems,

library systems and mezzanine floors.

MD Willem van Heerden says that with Capital Africa Steel acquiring the corporation four years ago, there have been significant restructuring and management changes. This created a perception in the market that the company was losing competitiveness - a view which he says may still exist. He intends to set the record straight.

“Our focus was to stabilise the business. We’re here, we’re still relevant and we don’t compromise on design principles, quality and durability. We’re investing heavily in the business to ensure

its sustainability,” reveals Willem. Symo is undergoing a R2-million project to implement new software solutions within its financial and technical divisions and is planning further capital investment in other areas of the business.

New offerings“We’ve streamlined our offering and want to focus more on standard stock. While we won’t necessarily introduce new products [as yet], we are changing the storage model from made-to-order, to made-to-stock in certain high value standard items in shelving and long-span systems for light-duty applications,” he reveals, adding that there will be products available for D-I-Y purposes too.

The company is now offering pregalvanised bolt and nut shelving systems, which are selling really well. The lower-cost and durable systems are particularly suitable for high corrosion applications.

On the ground “We are involved with all the major players in South Africa,” Willem asserts.

The company is completing a project for Toyota

Ready to Rock the MarketIn the past year, Symo Corporation has restructured, selling two of its divisions namely Symo-Tech and Symo Glazing, to focus only on Symo Storage and Sydmore Engineering.

The company was losing competitiveness - a view which he says may still exist

RACKING & SHELVING


South Africa, in Atlas road, Boksburg for which it supplied a wide spectrum of custom-designed products, including light-duty racking and shelving as well as heavy-duty racking.

The company has the ability to meet customer’s needs and will design around those requirements. “That’s what makes Symo a good solution for a customer - we have the ability to design, draw, manufacture, load test and R&D,” Willem adds.

Symo also has an ongoing government contract for storage systems. For instance, in 2010 it supplied the SA Reserve Bank in East London, with longspan/racking solutions with a mobile base and durable steel (mesh) side panels, as well as shelving systems to the National Library in Pretoria.

Other projects include those for Shoprite Checkers distributions centres (DCs) in Brackenfell in the Cape and Centurion in Pretoria, Bearings International’s DC in Atlas Road, Adcock Ingram, Dis-Chem and Pick ‘n Pay’s Longmeadow DC.

Heightened competitionWe ask about challenges in the market, and Willem says that over the past few years a lot of international players have entered, and are actively involved in, the market. “It’s becoming a real issue, but many of them don’t necessarily comply with SEMA specs. International competition is fierce and margins are under pressure, but that forces us to focus on our internal business,” he explains.

While some of its products are sent to the South African Bureau of Standards for testing, the company has a significant focus on inhouse R&D. It is registered with, and manufactures to, the international SEMA specifications and guidelines for the design, manufacture and installation of racking and shelving.

“Symo has always been known for excellent quality and durability of product – we won’t compromise on that,” he concludes.

Willem van Heerden, Symo Storage, Tel: (011) 437-7700,Email: [email protected], www.symocorp.com

International competition is fierce and margins are under pressure

RACKING & SHELVING


http://www.symocorp.com


COLD STORAGE

W e had a very good year last year overall - Carel grew by 35% on the previous year,” says MD Rodney Taylor, who puts it down to the ac-

ceptance of their energy saving products. “People are realising that they have to start reacting to rising energy costs. Specific products in our range have this facility built in,” he explains.

The company provides air conditioning and refrigeration controls, humidification systems, connectivity, supervision, sensors, drivers and valves to contractors who handle installation and maintenance. The main target market is large supermarkets and cold storage facilities.

“There’s a huge drive toward providing energy- saving solutions through which we reduce the store or warehouse’s carbon footprint. We have had very good success with our installations at leading supermarket chains across South Africa,” Rodney reveals.

Getting to gripsInternational case studies show up to 30% energy savings with certain Carel products for refrigera-tion and up to 15% on air conditioning. “Locally

we have had similar results,” he confirms. However, the bulk of the saving is dependent on the condensing temperature and this, in turn, depends on the ambient conditions.

Carel is one of the market leaders with new technology. The new ‘smart’ Carel Electronic expan-sion valve is strippable, which allows the service technician to service/clean the valve without un-sweating it. Another new in-novation is the PLoads controller specifically designed for cutting non-essential loads when needed, ie, in lights and geysers.

Greener gasDuring the past few years, there has been a major innovation in

Effectively Controlling Energy Consumption

Rodney Taylor

A major innovation in supermarket refrigerants, in the use of natural gas, carbon dioxide

Saving energy is an increasing concern across all industries and this trend is gaining traction in cold storage, as Carel

Controls SA attests.

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supermarket refrigerants, in the use of natural gas, carbon dioxide (CO2). The hydrofluorocar-bons used in a closed cycle in typical domestic or commercial refrigeration systems have high global warming potentials, which is not the case with natural CO2. “Theoretically it should never leak, but in a commercial installation, inevitably pipes get broken and the gas leaks out,” says Rodney.

But, it does come with its own challenges. “CO2 operates at a very high pressure and normal re-frigerants are used to cool it down. However, in the cascade systems that use CO2, the volume of the ‘bad’ refrigerant involved is far less than it would be in a normal installation,” he explains.Carel Controls has controllers specifically designed for these types of CO2 applications whether they are sub- or trans-critical.

Centralised management “Locally, retailers are looking to manage their stores from a central point,” says Rodney. The company’s RemotePRO system, provides moni-toring and data collection for refrigeration and air-conditioning systems.

The Carel PlantVisorPRO functions include centralised management on a server for control parameters for showcases, cold rooms, compressor racks, chillers, air-conditioners and humidifiers,

COLD STORAGE

for both display and modification; scheduling of the actions to be performed in the event of alarms and according to set time bands; and logging of the temperature, humidity and pressure values and any alarms.

One of the main advantages of using the Carel PlantVisorPRO is being able to bring the whole supermarket together in one central point: con-trolling air-conditioning, refrigeration and other energy appliances. This will allow the supermarket to monitor and load-shed when necessary, letting all parts of the supermarket ‘talk’ to each other.

New representation“The highlight over the last year has been opening a new branch in Cape Town,” says Rodney. The branch is a standalone, similar to the Johannesburg branch and will be supporting all Carel products.

The company is now also represented in Bots-wana by Metraclark. We are certainly looking at other opportunities for expanding into Africa,” concludes Rodney.Carel Controls SA, Rodney Taylor, Tel: (011) 805-1558 Email: [email protected] www.carelcontrols.co.za

Locally, retailers are looking to manage their stores from a central point

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W ith the recent launch of the new Quons at a glittering event at Sun City it was apparent that UD Southern Africa has a new sense of confi-

dence in its vehicles and will be taking the fight for market share in the extra heavy commercial

vehicle (EHCV) segment to its rivals – this time with a bigger, better and stronger opponent than ever before.

UD Trucks Southern Africa CEO, Johan Richards announced that the new vehicles are expected to take the company’s market share from just below 10% to 12% and says in time they are aiming for 15% of the local market. He acknowledged, however, that they would have to fight for each inch gained as the segment is currently growing at a rate of over 30% per annum and all the major truck manufacturers are eager to increase their presence in this segment.

More variants“We have a bigger pool of variants to suit differ-ent applications with the flagship 490 6x4 truck tractor leading the fleet. There are another 14 model derivatives intended for South Africa and these will be introduced to the local market from March to August 2012,” Johan says.

The local company is also responsible for UD Trucks’ exports into 12 countries in sub-Saharan Africa, and both right and left hand drive variants will be introduced into the region according to each territory’s market requirements.

All new Quon trucks sold from March 2012 are also accompanied by UD Trucks’ new Managed Maintenance initiative – an industry first in South Africa. Through Managed Maintenance, UD Trucks provides the company’s complete management and overseeing of all repairs and service costs on behalf of its customers.

The new UD Trucks Quon range of extra heavy vehicles offers a variety of manual and automatic transmission options that will suit UD Trucks’ customers’ unique business requirements.

Research and developmentJohan continues that the models launched lo-cally are the culmination of extensive customer feedback and local engineering trials. Focus areas included driveability, the transmission systems and overall economy. “After thousands of kilometres of testing, we believe the new Quon range also adheres to stringent local requirements.”

Smart Breed of Extra Heavies UD Trucks’ new generation Quon trucks have found the economical

sweet-spot for long haulers in South Africa with higher output engines that deliver better fuel consumption and fewer emissions.

TRUCKING

There are another 14 model derivatives intended for South Africa


ModelCode

ModelDescription

Transmission Gvm / Gcm Config. Application

4X2 Truck TractorE01 GK17 370 - TT Manual 9-Speed 17200 / 41000 4X2 TT 3-Axle Semi Trailer (Local Distr)

E02 GK17 410 - TT AS HR AMT 17200 / 45000 4X2 TT 3-Axle Semi Trailer (Long Haul)

ConstructionE03 CW26 370 - DT Manual 7-Speed 30000 / 36000 6X4 Dump 10,0M³ Rigid Tipper

T28 UD330WM Manual 7-Speed 26000 / 36000 6X4 Mixer 6,0M³ Cement Mixer

Freight CarrierT27 UD330WF Manual 7-Speed 26000 / 36000 6X4 FC Solo Freight Carrier

E04 CW26 -370 - FC Manual 7-Speed 26000 / 45000 6X4 FC Solo Or 2-Axle Drawbar

E05 CW26 490 - FC AMT 26000 / 65000 6X4 FC 3&4-Axle Drawbar

E06 CW26 490 - FC Manual 14-Speed 26000 / 65000 6X4 FC 3&4-Axle Drawbar (Severe Off-Road)

6X4 Truck TractorE08 GW26 410 - TT AMT 26000 / 56000 6X4 TT 3-Axle Semi Trailer/Limited Link Application

E09 GW26 410 - TT HR AMT 26000 / 56000 6X4 TT 3-Axle Semi Trailer/Limited Link Application

E10 GW26 490 - TT Manual 14-Speed 26000 / 65000 6X4 TT Link Application (Severe Off-Road)

E11 GW26 490 - TT AMT 26000 / 65000 6X4 TT Link Application - On/Off Road

E12 GW26 490 - TT HR Manual 14-Speed 26000 / 65000 6X4 TT Link Application - Long Dist

E13 GW26 490 - TT HR AMT 26000 / 65000 6X4 TT Link Application - Long Dist

E14 GW26 490 - TT AS HR AMT 26000 / 65000 6X4 TT Link Application - Long Dist

All the models in the range have been fitted with the GH13 series, a 13-litre in-line 6-cylinder turbo-intercooled engine. This is a Euro3 engine that offers a more environmentally-friendly option as it decreases an operators carbon footprint.

According to Johan, the new engine is a more efficient unit and, as there is only one engine range in the series, fewer parts are required for stockholding purposes, resulting in more cost

TRUCKING

They would have to fight for each inch gained as the segment is currently growing at a rate of over 30% per annum


savings for customers. The unit also boasts a flat torque curve which means less engine fatigue, particularly during uphill hauls.

Engine oil is filtrated by a two-piece full-flow long filter and a one-piece bypass long filter, which subsequently extends the service intervals of the vehicles to 30 000km for long-haul and 20 000km for medium-haul applications.

TransmissionsA selection of manual and automatic transmis-sions has been employed across the range to suit a range of applications.

There are three manual transmissions in 7-speed, 9-speed and 14-speed variants, while the star of the show is undoubtedly the automatic gear-box variants that are specifically developed to improve safety, overall economy and to offer the operators easy driving capabilities. The two-pedal or clutchless operation of the 12-speed Escot gearshift mechanism is seamless and contributes to overall economy of the vehicles.

The automatic derivatives have innovative features like Easy-Hill-Start, sequential shift, air-shift navigation, as well as an energy management feature that improves fuel economy in the top gear. Eco roll mode, for instance, engages the neutral position in order not to travel against engine compressions.

All these options are conveniently shown on a multi-functional display inside the cabin from which drivers can then select the appropriate mode. All automatic transmissions are only sched-uled for their first oil change at 390 000km, with oil change intervals set at every 390 000km thereafter.

UD Trucks, Tel: (012) 564-9500, Fax: (012) 564-9532, www.udtrucks.co.za

TRUCKING

The star of the show is undoubtedly the automatic gearbox variants

http://www.udtrucks.co.za


MARKET FORUM

Hino South Africa has signalled its intention to become a more important player in the growing waste management market with a joint venture between truck maker Hino, compactor manufacturer TFM and local Allison automatic transmission distributor D & A Power Products.

Hino SA has seven compatible models for waste manage-ment: four skip loaders, one hook lift and two compactors. Compactors can be fitted to the 500 Series 1626 chassis cab with a capacity of 10 -12m3 and the other, on the 700 Series 2841 chassis cab, which has a capacity of 19 - 21m3.

The flagship Hino compactor is equipped with a TFM HC250 compactor that has a capacity of 20,7m3 or ap-prox. 12,5 tons. It is built on a Hino 700 Series 2841 6x4 chassis cab, which is powered by a 13-litre Hino E13C intercooled turbo diesel engine developing 410hp (305kW) of power at 1 800r/min and 1 863Nm of torque at 1 100r/min.

The Hino 700 Series chassis-cab has been specifically adapted for its role of operating in the rough and tough conditions that exist on dump sites. The exhaust system has been rerouted and lifted 230mm, while the 300 litre fuel tank has been lifted 200mm. Skid plates are fitted under the engine, transmission and fuel tank.

A very important component in this offering to the waste management industry is the Allison 4500 fully automatic transmission which has five- or six-speed settings accord-ing to the specific operating conditions.

Ignatius Muthien, Hino, Tel: (011) 809-2064/2255, Email: [email protected]


www.wits.ac.za


www.acrow.co.za


MARKET FORUM

Goodyear introduces the company’s first commercial use of microchips in truck tyres. The new Goodyear Re-gional RHT II RFID (Radio Frequency Identity) 435/50R19.5 trailer tyre has a microchip built into it. The new tyre offers fleet operators benefits includ-ing reduced downtime, improved tyre management and greater security. This technology won an award for Goodyear in Latin America earlier this year.

Monitoring tyres can be a slow process as each tyre has to be identified by its sidewall markings, which are often not easy to see due to dirt or scuffing. RFID means that an operation can very quickly identify each tyre by passing a hand-held scanner around the sidewall and then have that information accu-rately electronically recorded. There are further benefits as these tyres are much easier to trace than other tyres if they are stolen and the tyres can be monitored throughout their service lives, including retreading.

The reason that the size 435/50R19.5 was selected for RFID fitment is that

it is the most popular tyre size among ‘megatrailer ’ operators, allowing maxi-mum volume within the European 4 metre overall trailer height limit. RFID makes tyre management faster and more accurate.

The microchip is built into the tyre on the assembly line and is programmed with a unique code that identifies the tyre, enabling a hand-held reader to see the type and size of the tyre as well as its unique identity number. In service, a Goodyear service provider or fleet operator can quickly scan

all RFID tyres and record the details electronically, saving time and ensuring accuracy. Stock control of new, used and retreaded tyres is a further benefit.

This technology is not currently avail-able in South Africa and sub-Saharan Africa. As fleets on the continent move towards these large super single tyre sizes, this technology could be made available to them.

Lize Hayward, Goodyear Tyre & Rubber Holdings, Tel: (041) 505-5421, Email: [email protected]


www.toyotaforklift.co.za


MARKET FORUM

A modern fleet of hi-loader trucks and support vehicles as well as a state-of-the-art communication network, allows for the quickest response time by any in-flight caterer. Foremost provider of fleet management solu-tions in southern Africa, FleetAfrica, has been awarded a second contract by Air Chefs, a provider of quality in-flight catering services to various domestic and international airlines.

The new six-year full maintenance lease entails the procurement, supply and maintenance of new customer service lift vehicles for Air Chefs. The contract com-prises of 25 fully customised, controlled-temperature, refrigerated Isuzu KB 200 petrol-driven light commercial vehicles that will be used for the distribution of cuisine to aircraft, catering kitchens, airport lounges and other service areas.

“Air Chefs’ primary transportation customer service requirements are minimum vehicle downtime and prompt service delivery, as non-delivery carries signifi-cant penalties and has major knock-on cost implications. To ensure the high quality of the cuisine Air Chefs supplies, proper temperature control from dependable refrigeration units is a prerequisite,” explains André Lambrechts, Corporate Contracts, FleetAfrica.

The truck bodies had to be built to accommodate specific height restrictions, as these vehicles have to enter height-restricted areas. However, at the same time, they cannot be too low; the specification must allow for the standard airline catering trol-leys to fit in the vehicle. Special secure load rail structures were built to securely hold the trolleys.

FleetAfrica contracted Elite Fi-bre, manufacturers of insulated and semi-insulated truck and trailer bodies, to customise the Isuzus’ bodies, while Transfrig transport refrigeration provided the refrigeration capacity. Due to the special height requirements, Transfrig had to design and build special evaporators. Air Chefs also required full branding on all the vehicles, and Graffiti was contracted for this purpose.

André Lambrechts, FleetAfrica, Tel: (011) 523-4394, Email: [email protected], www.fleetafrica.com


http://www.fleetafrica.com

www.grenco.co.za


Market shareThere has been a shift in global economic power, away from the developed world and towards the still growing economies of the major emerging markets. This shift should present South African business with a major opportunity to capture market share and grow. South Africa has long been seen as the trading and logistics gateway into Africa – a position now under threat.

Top five objectivesTop five strategic business objectives over a medium term framework include:

• increasing flexibility, agility and responsiveness in their business;

• using supply chain as more of a competitive advantage;

• expansion into emerging markets; and

• cooperation to improve industry competitive-ness and international growth and expansion.

Service levelsIncreasing service levels to customers remains the

number one supply chain objective. Others are:

• improving visibility in the supply chain;

• improving the flow of information between the business, suppliers and customers (which suggests maturing collaboration); and

• optimising inbound and outbound transportation.

Top five constraints• cost of doing business (includes bureaucracy,

taxes and customs costs, as well as the high costs of electricity and labour);

• currency volatility;

• rand strength;

• local competition; and

• macroeconomic uncertainty.

The cost of transport features as the greatest supply chain constraint, for almost every industry sector. This is one area that desperately needs effective communication between all industry sectors and the Government.

Following closely are:

• finding skills and expertise to enhance supply chain management;

• efficiency of ports and harbours; and

• labour unrest affecting supply chain operations reducing the envi-ronmental impact of the supply chain.

National competitivenessThe country’s entry into the BRICS emerging market trade bloc allows fo r s i gn i f i can t trade opportuni-ties and growth op-portunities on the back of the fastest growing economies in the world. It is estimated that by 2014 the BRICS economies wi l l make up approxi-

Ready for ActionThe results of this year’s supplychainforesight 2012, an independent study sponsored by Barloworld Logistics, concentrates on South Africa moving forward into the world as an emerging market, a member of BRICS and

a key player in the Africa of the future. It is entitled ‘South African Inc: Growth, Competiveness and the Africa question.’

South Africa has long been seen as the trading and logistics gateway into Africa – a position now under threat

Constraints on competitiveness

INDUSTRY INSIGHT


mately 60% of the global economy.

The top arena in which South Africa can compete internationally is its:

• capacity for innovation;

• professional management;

• adoption of best practices; and

• access to technology.

Competitive constraintsThe runaway biggest obstacle to growth and competitiveness is the skills vacuum, followed by bureaucracy and the cost of doing business, labour-employer cooperation and the cost of transport.

Industry representation and skillsSurprisingly, only about half of all industry sectors

in the sample definitely have industry representa-tion. A far greater number, over 80%, feel there is a need for such representation, and of those, 91% feel that such a consolidated industry rep-resentative body should lobby with Government at a national strategic decision-making level.

Emerging marketsThe shift in economic power away from developed economies towards emerging nations, and in particular BRICS, puts Africa’s growing, resource-heavy economies into a position of great potential advantage. The growing demand for resources by the BRIC nations, and stronger political ties between BRIC and many African countries, points to healthy growth in extra-African trade with the BRIC nations over the next few years.

Potential benefits of the involvement of the BRIC nations in Africa for South Africa include:

• Increase in political weight;

• Increase in export demand;

• Increased for-eign capital in-flow;

• Increased for-eign direct invest-ment; and

•Skills transfer.

However, the en-try of the BRIC economies into Africa also rep-resents a set of potential threats to the growth of the South African economy and the realisation of the these benefits.

The top arena in which South Africa can compete internationally is its capacity for innovation (Source: Wikimedia)

The cost of transport features as the greatest supply chain constraint

Aligning professional training with formal education

INDUSTRY INSIGHT


INDUSTRY INSIGHT

Healthy growth in extra-African trade with the BRIC nations

Revenue generated in emerging economies

These include:

• Inflation of domestic prices for commodities;

• relaxation of trade laws on import restrictions;

• overlaps in primary export trade;

• local market for heavy manufacturing; and

• beneficiation uncompetitive with India and China.

Expanding into Africa – strategiesIn terms of doing business specifically with emerg-ing African markets, there is a concentration on selling into these new markets, or partnering with local businesses to do so, as well as a focus on expansion regionally, into the southern Africa, or, at most, the sub-Saharan African region. However, it may be also a low-risk approach by South African-based companies selling into the regional market of the SADC where trade has existed for some time.

The other side of the emerging market expansion coin is the constraints that exist to doing busi-ness in these markets – especially in the rest of Africa. The constraints all reflect:

• a relative lack of sophistication in other Af-rican markets that bedevils easy interaction with them;

• lack of infrastructure, reliable services and processes.

Despite the widespread assumption that South Africa is the continent’s economic powerhouse and the supply chain and logistics gateway to sub-Saharan Africa, the majority of the sample feel that this position is tenuous. Unless the country actively addresses trade competition and does something to develop trade corridors and capture market share in the southern African economic region, major competition from Mozambique and Nigeria, among others, will reduce the country’s market share.

South Africa in fact sees itself as the gateway only to southern Africa, with Dubai in any case rep-resenting a better trans-shipment and logistics option for the North.

ActionThe clear set of action points that emerge from this year’s research:

• Industries that will provide the country with competitive advantage internationally need to be supported and developed.

• There is a critical need to align skills development and programmes to the needs of industries to make them more

competitive across the board.

• Industries need to be organised more collab-oratively, so that more effective lobbying and skills development can be realised.

• Private and public sector collaboration at policy formulation level is needed, especially with regard to trade in African emerging markets, and trade with the other BRIC nations.

Barloworld Logistics, Kate Stubbs, Tel: (011) 445-1621, [email protected]

Estimated African Infrastructure Investment, 2010 – 2030



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What is needed is a new approach in which technology, specifically sched-uling and decision support software, and large capital investments in rolling

stock and infrastructure are required in order to reach new levels.

In 2009, Transnet awarded a tender for a new scheduling system to local company Opsi Systems, optimisation specialists in the vehicle routing market. Three years on, and the partnership has birthed a routing and scheduling system for rail quite unlike many available in the rail schedul-ing space.

Titled Plato.Rail after the company’s primary software line, in the coal line environment, ‘Sup-ply Chain Today’ secured the first opportunity to take an in-depth look at the new system.

Record-breakingAfter a 20-day operational shut which was re-

quired to provide an opportunity to effect some of the capital improvements on the coal line, TFR reached an all time high of 1.62Mt per week, breaking the five-year record of 1.57Mt per week. Some of this success can be attributed to the use of Plato.Rail on the coal line.

Deon van Niekerk is the leading project manager at Transnet for the implementation of the new scheduling system, and with thirty years under his belt at TFR, he’s a veteran that’s seen the heydays and eishdays of the company.

Deon says, “Given our targets and the complex-ity of scheduling trains using different types of hauling power we realised that we had something that would require a unique approach. Three varieties of wagons to mines with different ca-pabilities and loading methods, while catering for maintenance requirements and the like, and having the capability to re-plan dynamically in the event of deviations and incidents, is quite a tall order.”Deon explains that their operations have a schedule being generated every week.

“Our scheduling is more about resource alloca-tion – dealing with the varying demand from the coal loading sites mostly north of Ermelo and as far afield as Lephalale as well as lower capac-ity mines in the Vryheid area, and determining which wagons and which trains go where. It’s an interconnected network of moves where deviations can have long-term impact.”

An Up-Tempo Change for CoalThe tempo of export coal through Richards Bay Coal Terminal (RBCT) has reached a point where good intentions, committed

staff and hard work are not enough to bring about the required increase.

Robert Bennetto, lead programmer and project manager from Opsi Systems

A routing and scheduling system for rail quite unlike many available in the rail scheduling space

SCHEDULING SYSTEM

Deon van Niekerk, senior manager at Transnet Freight Rail


Reducing dwell-timeThe keyword here is time. Deon indicates that the scheduling system’s number one priority is to reduce dwell time– when resources are either completely inactive or moving inefficient loads due to poor planning and subsequent amendments to the plan, and overall cycle time.

Plato.Rail needed to be able to leverage off Transnet’s information infrastructure – a series of networks of wayside readers and rolling stock tracking equipment – into a system which could dynamically respond to network traffic, rail devia-

tions and varying loading times at the mines.

Transnet currently sched-ules over 70 wagon sets, consisting of a mix of ‘Jumbo’ 83 ton wagons and ‘Smalls’ (which are slowly being decommissioned) on a week-to-week basis, with numerous complicating factors that affect which wagons can go where, on which tracks, without interfering with the pas-sage of other trains on the network.

An infinity of solutionsSo the problem is identi-fied – but how to fix it? The Plato.Rail project currently handles the export coal from 50 mines in the Ermelo

region. If there are 100 loads to be done, then there are roughly 9.3326 × 10157 possible solu-tions. Ultimately, Opsi selected a hybrid genetic algorithm to approach the required schedules.

Robert Bennetto, the lead project manager and programmer on the Plato.Rail, explains. “How do you explore more of the space?” he asks, “Firstly, we created a model of Transnet’s operations, taking into account various factors, such as the incompatibility between electronically controlled pneumatic (ECP) brakes and non-ECP brakes, deviations on the line, rules about load building, wagon versus train versus track compatibility, and so on.

On the fly“Based on the output from our model simulator, the genetic algorithm would take over. Typically, a ge-netic algorithm allows you to trial superior areas of the search space by ‘breeding’ different solutions all the time, constantly taking the best from each to create a new schedule and continu-ing from there while still ensuring feasible sched-ules. We let the schedules evolve in the system.

“Generating a schedule quickly was also crucial. More importantly, we had to ensure we could recre-ate the schedule on the fly. Plato.Rail functions in two modes – planning

A system which could dynamically respond to network traffic, rail deviations and varying loading times at the mines

A typical Transnet schedule, represented within Plato.Rail, with the various graphs representing train movements to the mines on the left-hand side and RBCT

Plato.Rail’s simulator, which plays out the planned schedule over time

SCHEDULING SYSTEM


and execution, and both of these have had a huge impact for the planners and controllers at Transnet.”

Inner workingsThe planning and scheduling section of Plato.Rail provides Transnet with a full means for schedul-ing the expected loads from and for clients and for managing the availability of the locomotives, wagons sets and maintenance occupations. Hub capacity constraints and various site activities are also catered for.

The system also has several data views within the ‘schedule planning’ section for reviewing the final schedule result before publishing it for execution. Train diagrams graphically represent the optimality of the schedule and train move-ments, while an integrated simulator allows users to track the expected movements of the schedule schematically.

A resource pool allows users to view the planned activities for major sites while a section view provides a means to view network traffic for the generated schedule between key locations.

Tight integrationPlato.Rail provides several tools for managing published schedules. The capturing of arrival, departure and loading times, alongside with any dispatch information, is simplified, and trains can easily be rerouted or unscheduled trains added if required. Execution management integrates tightly with the scheduling and planning section of the system in order to provide consistent planning and management of resources.

Plato.Rail’s execution management further utilises any tracking infrastructure available to provide asset tracking on the network which can be used to automatically capture loading, offload-ing, departure and arrival times. A trip and dispatch history is recorded and is available for perusal.

Importantly, Plato.Rail al-lows the user to reschedule a particular plan, from the current moment in time, utilising all captured information, asset loca-tions, confirmed loads and other miscellaneous information.

Buying back lost timeDeon says volumes are slowly picking up, and Plato.Rail has succeeded in reducing the dwell time significantly both on the

planning and execution side. “For me, Plato.Rail succeeded the moment we could generate a good, workable schedule in half an hour,” enthuses Deon. “The same amount of time is required to adjust an existing schedule. Before, it was taking us roughly two days to generate a schedule which inevitably failed because it did not consider all of the operational constraints of the coal line operation.”

Likewise, the average workspan has been reduced by almost a day – it’s freed up 1 000 wagons per schedule for either additional volume or to cater for unexpected events.

Standard fare“We now have unprecedented visibility into our operations with Plato.Rail’s execution function, and it is helping us identify some of the irregu-larities in Transnet’s system. We can see when processes are taking longer than expected and track and action differences between planned and actual events.”

Robert indicates that picking up these irregulari-ties is a common feature of all organisations that implement systems like Plato.Rail. “The software has already helped Transnet improve the quality of their data by identifying misplaced resource tags, reducing the downtime on readers due to power failures or maintenance issues, and so on. The format of the data is the same, but its quality has improved significantly.”

Opsi Systems, Rick de Klerk, Tel: (011) 880-7951, Email: [email protected], www.Opsisystems.com

The Resource Pool, where Transnet can quickly identify the planned resources availability at Ermelo and RBCT, key points on the coal line

The capturing of arrival, departure and loading times, alongside with any dispatch information, is simplified

SCHEDULING SYSTEM


http://www.Opsisystems.com


SOFTWARE

I n their austere head quarters in Observatory, Johannesburg, ‘Supply Chain Today’ chats to CargoWare’s (a division of Cargo Carriers) GM, Charel Schickerling, about a launch that

aims to make routing and scheduling software available to the broader market.

“There are many benefits to routing and sched-uling software, such as optimising fleet sizes, using the most economical routes and the right vehicle combinations. Fleet sizes can be reduced by up to 15% to 20% with the same workload and output,” says Charel.

Enter a potential solutionCargoWare supplier, UK-based DPS International, has developed a ‘software as a service’ (SAAS) option, called LogiXcentral, an online vehicle routing and distribution planning service, hosted on DPS’ central servers, which works as though it were hosted on a client’s own computers, but

at a significantly reduced cost.

CargoWare are planning to release this option to the South African market in the second half of the year.

Affordable option“The usual software project can range from R150 000 to R500 000 depending on the size of operation. There are not many organisations that will put that kind of money on the table but they may look at a more attractive option by ac-cessing the software through the Internet, which is much more affordable,” says Charel.

Although exact pricing has not been finalised as yet, clients will pay on a 'per vehicle, per month' basis, on a mandatory six-month contract with the further benefit that no software has to be installed on local servers or workstations at the customer’s site. All that is required is a broadband Internet connection. “This option opens the market significantly to the smaller users, who will reap the benefit of the technology without having to purchase it outright,” he explains.

Taking to the CloudWith the significant capital required for most routing and scheduling software, many smaller logistics

companies don’t ever go there. But what if there is another way?

Fleet sizes can be reduced by up to 15% to 20% with the same workload and output


After six months, users can decide whether or not they wish to continue - if they choose to discontinue the service, access to the server is cut off and the data passed back to the client without anything having to be uninstalled.

Route selectionThe software considers parameters such as the most economical and/or shortest routes, time, availability, and utilises the capacity of the fleet to its optimum, depending on the material trans-ported. Certain routes/areas, such as toll roads, can be blocked. However, recommended routes can be changed or adapted by the operator. “The system does not take over the role of the sched-uler – it does approximately 80% to 90% of the mundane, routine scheduling tasks, leaving the balance to the scheduler enabling him or her to apply his mind and skills in order to schedule the exceptions,” Charel clarifies.

Traditionally, customers are grouped in geographi-cal areas, with vehicles allocated to those specific areas, leaving the drivers to decide on the best possible route. Many operate on fixed routes, regardless of how full the vehicle is, resulting in wasted unnecessary kilometres, time and effort. “With LogiXcentral all orders are consolidated and the system calculates time, distance and capac-ity, matching orders to the vehicles available and delivery points. The system is dynamic – that’s the beauty of it,” Charel explains.

Another benefit of using a central server is that if

SOFTWARE

Clients will pay on a 'per vehicle, per month' basis, on a mandatory six-month contract

there are any changes to be made to the software, such as upgrades, these are made at the central server only and all users benefit immediately, without the need for consultants reinstalling and updating software onsite. “This is a turnaround in terms of the philosophy of how computers can be used and function on the ‘cloud computing’ principle, where data is stored securely and is accessible to all,” he adds.

Security concernsHowever, it’s not plain sailing. “One of the biggest stumbling blocks in the potential client’s mind is the perception of a lack of security. Clients are wary of having all their customer, product and sensitive information stored on a third party’s server,” Charel reveals.

However, DPS has invested a lot of time, effort and money into ensuring there is not a breach of confidentiality. “In most cases it is actually more secure on the DPS server than internally, because some companies do not have the proper infrastructure and skills capacity to secure data. Also, if there is structural damage like a fire, your data is safe,” he insists.

Looking positive CargoWare tentatively considered introducing SAAS three years ago, but had to pass it up be-cause of the country’s then limited bandwidth.

A view of the server room at The National Archives


The software considers parameters like the most economical or shortest route

“Things have improved drastically since then, especially with the new cables be-ing laid on the coast and we feel that we can now launch similar services as well,” says Charel. Further tests with local clients still need to be conducted to ensure that there are no connectivity and bandwidth problems, but it looks positive.

“We recently conducted an exercise in Durban with a wholesale meat company that operates about 50 vehicles on fixed routes, regardless of capacity. We proved to them that they could do the same work everyday using 15 fewer vehicles, by do-ing away with fixed routes and working on dynamic principles,” he says.

“We see the SAAS option as a big step forward and believe that it will have a big impact on the whole industry if there are enough potential users who are willing to step into the ‘cloud’,” concludes Charel.

CargoWare, Charel Schickerling, Tel: (011) 485-8775,Email: [email protected], www.cargocarriers.co.za

The system is dynamic – that’s the beauty of it

SOFTWARE


http://www.cargocarriers.co.za

www.linvar.co.za


OUTSOURCING

F rom our traditional USA, UK base, we’ve gone global, moving into Europe, China, Singapore and East and West Africa. From being a traditional import non-vessel operating

common carrier offering a groupage and full container load, product range, we now also offer break bulk, project cargo and airfreight. Our exports are also growing rapidly,” says MD Colin Atkins.

“With the USA market still not back to levels reached prior to 2008 and China slowing just a bit, no-one is expecting any great shakes this year. We believe however, this is the ideal time for global expansion and introducing new options to our loyal customer base.”

Taking advantageWCS’ main international principal of 18 years is Carotrans. “They have a solid base in the USA, China and now Europe as well. WCS has only been in the China market for about two years, but with Carotrans’ extensive backup network of offices and container freight stations at all major ports, we have already made our presence felt as an area-significant non-vessel operating player in this competitive market,” explains Colin.

As of March 1, WCS and Carotrans launched the first weekly less-than-containerload service from Charleston USA to Durban, Johannesburg and Cape Town.

Freight Forwarding Goes Global

We now also offer break bulk, project cargo and airfreight

WCS sent 5 000 generators to Guinea’s public polling stations

“Companies are now more than ever looking at transit times, comparing costs and looking for reliable service providers

who offer more. World Cargo Services (WCS) has introduced some innovative IT ideas over the last year, with the

introduction of desk-top gadgetry, providing access to track and trace, land and ocean rates and will shortly be offering a Web-based postbox, total shipment, document retrieval

system.”


Market opportunites“Traditionally, local companies have used SAA as the major airfreight carrier out of the US. Customers often experience backlogs because of space shortages and pay a high premium to ensure freight is loaded. We now facilitate the use of other carriers out of the US offering alternative routings that can be just as fast, but at a lower price.

“We’ve also become more involved in project freight into Africa. Sea freight from South Africa, along both coasts of the continent to mining, power, and oil related projects up north is booming and there are always a lot of airfreight spin-offs especially when the projects are on deadline,” says Colin.

He adds with a smile that WCS receives some really unusual requests sometimes. “For example, 5 000 generators for public polling stations were sent to Guinea from South Africa for its recent elections held there. Airfreight is preferred because it’s quick and reliable, even though it’s expensive.

“South Africa retains a strong technological and opportunistic foothold in Africa and we need to take full advantage of this opportunity without overpricing ourselves,” he concludes.

Colin Atkins, World Cargo, Tel: 0861 222-929Email: [email protected], www.worldcargo.co.za

WCS and Carotrans launched the first weekly less-than-containerload service from Charleston USA to Durban, Johannesburg and Cape Town

OUTSOURCING


http://www.worldcargo.co.za

www.zetes.co.za


MANUFACTURING

P remier Foods is a major South African staple foods manufacturer of leading brands including Iwisa maize meal, Snowflake flour and Blue Ribbon bread, with 52

mills, bakeries, depots and distribution points throughout South Africa.

Mill tourAs we walked from one level of the mill to another, Vereeniging mill manager Kobie Nel explained that the wheat mill supplies 60-80% of the retail

market in the greater Gauteng region. “An aver-age of about 20 000t of grain is offloaded per month into 28 silo bins, with a total capacity of 34 900t and an offloading capacity of 120t/h. It takes from 5 to 10 minutes for trucks to offload.

“The mill has two mixers and two blenders, pro-cessing selfraising, brown bread and nutty wheat flour at 20t/h. Eleven packing lines, most of which are automated, consist of Fawema packers. On average the mill can pack 700t/day, or 14 000t/month, packing 24 hours a day and 5 days a week,” he says.

In-house assurance systems check food quality and safety. Incoming raw materials, in-process production and packing lines are tested against set specifications.

Ins and outsOnly about 10% of raw materials are brought in via rail, the rest by road, although the group would prefer to return to rail. “One train can carry an average of 40 000t of product each time it delivers, while one truck can only carry about 35t,” says Kobus.

He adds that Premier Foods looks forward to the government’s plans to upgrade railway network infrastructure over the next few years.

The monthly distribution of 21 250t accumulates to 255 000t/y, mostly to depots, inhouse bakeries and industry. The group has a strong independent distribution network of 900 bread trucks which reach over 28 000 outlets daily.

Growth Positioning Growth Positioning

“Supply Chain Today” recently visited Premier Food’s Vereeniging Mill and was exposed to its day-to-day running and the recent developments in the group.


RestructuringThe group concluded a major restructuring last year that saw international investment group Brait SA become a long-term shareholder and new strategic appointments being made to support Premier Foods’ next phase of growth.

Boosted by improved access to capital, investments will be focused on the develop-ment of new products and brand extensions, capacity expansions across the supply chain, strategic mergers and acquisitions linked to adjacent products as well as participation in new sub-Saharan markets.

Premier Foods Group CEO Ian Visser says, “The restructuring enables certain members of Premier Foods’ management, who par-ticipated in the initial management buy-out in 2007, to monetise their holding in the Group and exit their roles over the coming months.”

To enable these objectives, Brait SA has the option to increase its stake in the Group from 49,9% to up to 80% over the next five years by acquiring shares from members of Premier Foods’ management. The other

20% will remain under the control of staff and management of the Group.

The focus now is on long-term growth by expanding revenues and growing margins through a series of strategic investments across the business.

Ian Visser, Premier Foods, Tel: (011) 565-4301 Email: [email protected] www.premierfoods.com

The wheat mill supplies 60-80% of the retail market in the greater Gauteng region

MANUFACTURING


http://www.premierfoods.com

www.cargocarriers.co.za


FFS Refiners have signed a deal with a small enterprise trucking company, eAfrica Carriers, which has resulted in a win-win for both Durban com-panies.

FFS Refiners MD, Don Hunter explains, “We have been associated with Kandy Naidoo, of eAfrica Carriers, for 12 years and found him to offer an ef-ficient and reliable transport service. Essentially, we have given eAfrica a soft loan to enable them to buy two new rigs and to grow their business. For our part, we significantly boost the ‘enterprise development’ rating on our B-BBEE scorecard due to their Level 1 status as a Black-owned company. FFS is currently a Level Four, 100% compliant B-BBEE company; we are

transforming our business and working toward a Level Three rating.”

The vehicles are new Mercedes-Benz Axor 3340 trucks, pulling 31-tonne tri-axle trailers. The tankers will be transporting heavy oil manufactured at FFS’s five plants by refining blend-stocks into various products, mainly between Durban and Gauteng/Mpumalanga.

FFS are the largest suppliers of in-dustrial heating fuels in South Africa. The company runs a fleet of hazard-ous product tankers, most of which have been designed and built by FFS, a registered SABS manufacturer of hazardous goods tankers.

Don Hunter, FFS Refiners, Tel: (031) 459-5300, www.ffs-refiners.com

Kandy Naidoo, left, CEO of eAfrica Carriers, and Don Hunter, MD of FFS Refiners

Transnet Port Terminals and the Harbour Carriers Association will pilot a hybrid booking procedure for transporters using the Durban RoRo Terminal located in Mahatma Ghandi Road. The new arrangement promises greater flexibility for transporters and may ease road traffic congestion in the Point area especially around breakbulk commodities.

Under the new system, transporters arriving at the terminal during the daytime period between 06h00 and 22h00 will be served on a more flexible

‘first come first served’ basis.

However during the underutilised night shift (22h00 to 06h00), weekends and public holidays, the pre-booked timeslot system will still apply. The decision is the result of a new transporters’ forum started in January between TPT and the Harbour Carriers Association and SAAFF. The forum aims to find a com-mon solution to benefit the port and the road freight association.Ayanda Mantshongo, Transnet Port Termi-nals Durban Terminals, Tel: (031) 361-6836, Email: [email protected]

MARKET FORUM

http://www.ffs-refiners.com


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MAN Truck and Bus market share in the new truck segment of the southern African Customs Union (SACU) has increased steadily since 2009, registering a 10.6% market share in 2010 and rising to 11.1% in 2011.

Its new truck market share during 2012 is projected to increase further still to 12.4%, while operationally the company entered 2012 with two key new strategic developments to enhance its customer proximity and service delivery.

“The streamlining of our national centre structure from three business units to two; namely MAN Centre North (headed

by management board member, Mike McDonald) and MAN Centre South (headed by new management board member, Brenden Duthie), will enable us to leverage synergies that exist within these broader markets more effectively,” says Marcus Geyer, CEO, MAN Truck & Bus SRM.

MAN’s empowerment rating currently stands at level three with ongoing initiatives that finance and support black-owned f leets consistent ly improving its BBBEE status.

“Furthermore, MAN Truck & Bus SA has implemented a new Customer Relationship Management program

that will monitor customer complaints from a centralised point and ensure swift resolution of issues arising from all areas of our operation.

“These developments, in conjunction with our class-leading products, form a solid platform from which we can continue to offer unprecedented service to our clients, helping promote their business efficiency in an increasingly st r ingent commercia l t ranspor t environment,” concludes Marcus.

Tel: (011) 928-6800, Email: [email protected],www.mantruckandbus.co.za

MARKET FORUM


http://www.mantruckandbus.co.za

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The Chartered Institute of Purchasing & Supply (CIPS Southern Africa) has signed a Memorandum of Understanding with the University of Pretoria (UP), to further professionalise the procurement and supply chain profession.

“Our courses are informed by the latest research, professional knowledge and partners in industry who contribute to programme development and teach-ing. Our staff combines professional practice with teaching and research activity,” says University of Pretoria

Unit for Supply Chain Management programme manager,Wesley Niemann.

The unit offers a progressive range of formal and continuing education pro-grammes in supply chain management. This includes a Bachelor of Commerce (B Com) with an option in Supply Chain Management, a Masters of Philosophy (MPhil) Business Management with an option in Supply Chain Management and various certificate programmes and short courses.

The areas of cooperation include advo-

cacy and lobbying towards enhancing the professional status of the supply chain management community within South Africa; building on the already excellent quality of SCM qualifications at the UP; and encouraging students to join CIPS Southern Africa as members and to work towards obtaining MCIPS membership status.

Yolandi Venter, CIPS Southern Africa Tel: (012) 345-6177,www.cips.org/en-ZA

MARKET FORUM

http://www.cips.org/en-ZA

www.symocorp.com


From modest beginnings less than five years ago, Pietermaritzburg-based Wil-lowton Logistics has grown into a major South African transport company with its vehicles covering an average of two million kilometres a month.

The company boasts one of the larg-est Freightliner fleets in the country having last year bought 60 new age Detroit 12.7 models. There are now 135 Freightliners in the fleet and 45 short haul Mitsubishi 26.420 units bringing the total truck count to 180 which includes tankers, tippers and refrigerated vehicles.

Willowton Logistics moves goods for its mother company, the Willowton Group (one of South Africa’s largest sunflower seed crushers and a manufacturer of edible oils, margarines, soaps and candles) throughout South Africa and

into neighbouring countries including Mozambique, Swaziland, Lesotho, Zimbabwe, Botswana and Namibia. The majority of the Freightliners are used on long haul routes while the Mitsubishi Fuso’s handles local deliveries.

What’s in store for Willowton Logistics? “To stay fast and reliable, a transport company needs to replace vehicles every 800 000km or after five years. Our first batch of vehicles – about 40 – are due for replacement before February next year and all things being equal we’ll stick with Freightliner.

“This is not growth, rather consolida-tion. However, we have a big contract in the pipeline and if that does happen we will definitely buy more trucks,” says MD Frans Henning.Hilton Cairns, Willowton Group, Tel: (033) 355-7800, www.willowtongroup.com

A Willowton Logistics Freightliner truck emerges clean and fresh from the company’s newly-installed 22m-long wash bay.

Abe Uys is the new Chief Operating Officer of Crossroads, including SkyNet.

Ken Light has been ap-pointed Chief Business Development Officer for Crossroads.

Eugene Swanepoel has been appointed Sky-Net’s General Manager.

On the Move

MARKET FORUM

APC 24

Acrow 18

Airlink Cargo 8

Cape Gate 35

Cargo 34

Eqstra 19

GEA 20

Goscor Outside Front/ Back Cover

Linvar 30

Index to Advertisers

Mercedes-Benz Inside Back Cover

Scania Inside Front Cover

Sapics 6

SSI Schaefer 36

Symo 37

Universal 12

Wits Plus 17

Zetes 32

http://www.willowtongroup.com


www.mercedes-benz.co.za


www.goscorlifttrucks.co.za

Supply Chain Today May2012

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