SCT: Aug10

40
Supply Chain Today August 2010 1

description

Supply Chain Today - August 2010 edition

Transcript of SCT: Aug10

Page 1: SCT: Aug10

Supply Chain Today August 2010 1

Page 2: SCT: Aug10

2 Supply Chain Today August 2010

Page 3: SCT: Aug10

Supply Chain Today August 2010 �

Aug 2010

Contents

Proprietor and Publisher:PROMECH PUBLISHINGTel: (011) 781-1401Fax: (011) 781-1403E-mail: [email protected]@promech.co.za Website: www.promech.co.zaManaging Editor:Susan Custers

Advertising Sales:Lelanie Lane

DTP: Zinobia Docrat and Sean Bacher

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

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 accurate reproduction, the editor, authors, publish-ers and their employees or agents shall not be responsible 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.

SAPICS4 GoodTurnOut

CoverStory5 LivingUpToitsPromise

CSCMP7 2010ConferenceTour

Barcoding,Labelling,ScanningandRFID9 SmartTagsGetSmarter11 WeAreBeingRippedOff13 FoodForThought

RackingandShelving15 CashingInOnCash‘nCarry17 ToughingitOut

MarketForum—Unit20 MarketForum

WarehouseManagementSystems23 InfortheHighJump

Outsourcing27 TaketheMarketByStorm

Sustainability29 FunctionalPackaging

Railways&Ports31 ContainerTerminalleadsin Productivity

Warehousing33 RaisingtheBar

MarketForum—Supply35 MarketForum

EndorsingBodiesAfritag (divofSmartCardSociety)CGCSA (ConsumerGoodsCouncilofSA)CILTSA (CharteredInstituteof Logistics&Transport:SA)SAEPA (SAExpressParcelAssociation)SAPICS (TheAssociationforOperations ManagementofSouthernAfrica) alsomailedto:CSCMP (CouncilofSupplyChain ManagementProfessionals)

Featured on the cover:

Criterion EquipmentTel: (011) 966 9700www.criterion.co.za

Page 4: SCT: Aug10

� Supply Chain Today August 2010

I nteresting papers, a bus-tling exhibition hall and the usual festive and social atmosphere cul-

minated in the Terry Smee Award for the best speaker at the Conference going to Karl Manrodt of Georgia Southern University in the USA, whose presentation on “Vested Outsourcing” inspired delegates.

The South African Breweries Award for the Most Innova-tive Presentation was this year awarded to Abrie de Swardt of Imperial Logistics, for his presentation entitled “Greening Transportation in the Supply Chain”.

The Sapics Award for the best written paper from a practitioner was presented to Mark Hunter, of Eskom whose paper addressed “Getting rid of your clutter.”

Exhibitors ran fabulous com-petitions during the confer-ence, and prizes included a Hyundai Atos from Imperial Logistics.

Good Turn Out

Despite the recession,

delegates turned out

in droves to attend the

Sapics Conference and

Exhibition held at Sun

City in July.

The South African Brewries Award for the most innovative presentation was awarded to Abrie de Swardt of Imperial Logistics

The Terry Smee Award for best speaker was awarded to Karl Manrodt

SAPICS

The Sapics Award for best written paper from a practitioner was awarded to Mark Hunter of Eskom

Page 5: SCT: Aug10

Supply Chain Today August 2010 �

C riterion Equipment has traded in South Africa for nearly 40 years as the sole distributor of TCM forklifts and has sold

over 10 000 TCM material handling products to the local market,” says Shaun Collins, national sales manager, Criterion Equipment.

“A particular focus of the new man-agement team is to develop a national workshop support facility and to sub-stantially increase parts stock holding for on-demand availability.

“One of Criterion Equipment’s great-est strengths is its ability to provide a wide range of quality branded materi-als handling products, which include not only standard units, but ‘special’ models, where particular market needs arise,” he says.

The brandThe company’s service encompasses the sale of new and used forklift trucks, long and short term rentals, service and maintenance contracts, as well as the supply of genuine TCM parts.

Included in the TCM range are internal combus-tion forklifts, with capacities between 1.6 and 45 tonnes, battery powered counterbalance forklifts from 1.5 to 4 tonnes and battery powered reach trucks, with capacities from 1.5 to 1.8 tonnes.

Specialist areas of operation of these machines include storage and logistics, warehousing, the motor industry, fleet solutions, freight and trans-port, mining and manufacturing.

Success into AfricaCriterion Equipment, which has supplied TCM forklift trucks to The Southern Bottlers Group in Malawi for over 35 years, has recently delivered eight new machines to the company’s warehouse facility in Blantyre.

These double pallet handlers, with a 2.5 and 3 tonne capacity, are used by Southern Bottlers to

Living Up to its PromiseCriterion Equipment, suppliers and supporters of material han-dling equipment, has seen a significant turnaround in business

since its take over by Invicta Holdings Limited a year ago. Among other things, the company has implemented a struc-tured programme to improve its service, has restructured its management team and introduced a new operating structure.

handle sizeable loads of cans and bottles. The latest TCM engine powered forklifts, with new features for efficient operation in demanding conditions and for enhanced operator comfort, are further improving handling efficiencies at the plant.

New rangeThe newly designed iNoma range has been up-graded and re-designed for easier access, greater operator comfort, improved manoeuvrability, enhanced safety and extended service life.

These new forklift trucks ensure substantially reduced vibration with the use of dual floating systems for both the engine and the hood.

The four point rubber cushion absorbers between the seat and engine and its transmission, minimise the transfer of vibration to the operator. The same four point suspension in the hood also reduces vehicle vibrations.

There is also an increased floor space for easier foot manoeuvring, a lever which is positioned to the right of the steering wheel for easier entry and exit and a multifunctional suspension seat. A resin screen on the overhead guard ensures comfortable operation in all weather conditions.

By lowering the dashboard by 70mm and the bar by 190mm, visibility for the operator is improved by 50%. The re-shaped counterweight increases safety during backward movement.

COVER STORY

Left, Brenton Kemp, managing director, Criterion Equipment, Tony Sinclair, CEO, Capital Equipment Division, Invicta Holdings Limited, Shaun Collins, National Sales Manager, Criterion Equipment

Substantially reduced vibration

Page 6: SCT: Aug10

� Supply Chain Today August 2010

Safety features in-clude an anti-roll mechanism during turning, a neutral safety mechanism where the engine can-not be started unless the change lever is in the neutral position and high mounted rear combinat ion lights that are easily visible.

Forklift improvementsThe new fork landing mechanism encom-passes a fork lowering speed that deceler-ates at a height of ap-proximately 150mm above the ground.

This enables accurate placement of the forks onto the pallet.

The front and rear stability has also been improved for stable and more consistent cargo handling. The

COVER STORY

These environmentally friendly forklifts conform with new emissions control and energy management systems

Operator visibility has improved by 50%

TCM steering axels have been strengthened for enhanced durability in demanding applications.

Mast supports, tilt cylinders and tie bars have been re-designed to construct a sturdier mast. Oil filled lift cylinders have also increased durability of this series.

Optimal positioning of the fan, radiator and muf-fler, has improved the airflow and reduced the operating coolant temperature for more efficient operation.

These environmentally friendly forklift trucks, which conform with new emissions control and energy management systems, have been designed for reduced maintenance requirements.

Comprehensive serviceTCM machines are available from a network of Criterion Equipment branches and carefully selected dealers and agencies in most of the major centres throughout Southern Africa and in neighbouring countries.

Criterion Equipment, Shaun Collins, Tel: (011) 966 9700, Email: [email protected], www.criterion.co.za

Page 7: SCT: Aug10

Supply Chain Today August 2010 �

required. Should the exchange rate vary signifi-cantly from this, it may be necessary to adjust these rates accordingly and the costs of visas are not included.

BookingShould you like to find out more about the tour, query any of the abovementioned details, or make a firm booking, please contact Mike Johnston at Tel: (011) 678-1820, Fax (011) 678-8715, Cell (082) 899-9945 or e-mail [email protected]

Please come and join us on this highly educational trip. The overall value of such an experience is likely to far outweigh the direct costs.

Full details of the Conference program are available on the CSCMP website at www.cscmp.org

Tour programA full day’s sightseeing and getting to know the SA group in and around the historic San Diego area

31/2 day CSCMP Annual Conference which includes:

Conference Registration

One-day Supply Chain Educator ’s Conference

Three general sessions by renowned speakers

A Supply Chain of the Future Exhibi-tion and Contact Area

20 specialist concurrent tracks (114 sessions)

24 Additional educational sessions as part of the “Supply Chain of the Future” Display

A Supply Chain Literature and Book Store

Two days of additional privately organised site visits (on Thursday 30th Sept & Friday 1st Oct after the CSCMP Conference). Sites are still being selected and finalised. There will be a minimum of three site visits per day.

Accommodation, meals and gratuities. It is preferable for the group to travel and stay together where possible to get maximum benefit from the tour. Single and shared ac-commodation can be catered for.

CostThe indication costs for the 2010 CSCMP Confer-ence and Study Tour, subject to final bookings are as follows:

These costs assume exchange rates of R 7.50 to the US$, and a minimum tour party of ten is

2010 Conference Tour

CSCMP

Shared Accommodation US Dollars SA Rand

CLM Member 5,343 40,131

Non-Member 5,868 44,068

Single Accommodation US Dollars SA Rand

CLM Member 6,406 48,103

Non-Member 6,931 52,040

The cost of the optional full-day work-shops on Sunday 26th September are:

CSCMP Member $399 R 2,995

Non Member $499 R 3,745

The cost of the Conference Site Tours are:• Petco Park $12 R90

• CEVA Logistics $30 R225

• San Diego International

Airport $30 R225

• GES Warehouse $30 R225

• US Aircraft Carrier $30 R225

Once again, the Southern African Roundtable of the CSCMP in conjunction with Logistics Management is organising a USA Supply Chain Study Tour, incorporating the 2010 CSCMP An-nual Conference being held in San Diego, USA. The tour will

be taking place from Thursday 23rd September to Monday 4th October 2010.

Engineer PlacementsProfessional opportunities

Our job board continues to display a wide variety of excellent job positions that you can review and apply for on- line. Keep your credentials on our secure and

confidential databasewww.engineerplacements.com

Page 8: SCT: Aug10

� Supply Chain Today August 2010

TH

E O

LD

SH

AN

GH

AI

FIR

EC

RA

CK

ER

FA

CT

OR

Y R

29

51

Mercedes-Benz South Africa (Pty) LTD is an authorised distributor of MITSUBISHI FUSO trucks.

Mitsubishi FUSO is backed by our very own assurance that you will always receive service that is uncompromising and unsurpassed.

We give you 100% every time.

WITH OURFETCHING

PROMISE TO YOU

QUALITYSERVICE

YOUR FUSOWE’LL KEEP

Our promise to you is a promise to deliver 100% service, 100%

of the time. From our inspections to our tools and equipment, we

ensure that our prices are reasonable and our work, transparent

so that we exceed your expectations from start to finish.

CALL Ø861 FUSO ØØ OR VISIT WWW.FUSO.CO.ZA AND CHOOSE FROM OVER 3Ø DEALERSHIPS NATIONWIDE

5B����B)8B6SO\&KQ�LQGG���� ������������������30

Page 9: SCT: Aug10

Supply Chain Today August 2010 �

O ther tags have this a b i l -i ty, but

they ’ re non-stan-dard, so they haven’t been used across the board. RF Controls’ Intelligent Tracking and Control System (ITCS), overcomes this problem. It’s the reason I shot to the States to secure the agency as soon as I heard about it,” he chuckles.

Using standard Gen-eration-2 UHF tags,

which already have a following among 70% of the global market, readers can identify, locate and track tagged items in real time. The tags, which are either passive or battery-assisted, are inexpensive and readily available. They can be attached to clothing, electronic equipment and pharmaceuticals, as well as to containers, in order to track their contents.

Distance scanningThe system can also read from further away. Wide area zonal monitoring is achieved using innovative ‘smart antenna’ technol-ogy, which can pinpoint an individual RFID tag to within 30cm. The antenna is compliant with RF emis-

Smart Tags Get Smarter“Up until now, the standard UHF tags commonly used in retail stores such as Walmart have been able to say ‘I’m here,’ and

provide data, but they haven’t been able to give the precise lo-cation of the item they’re attached to,” Barry Bateu, MD of Har-

monic Solutions, tells “Supply Chain Today”.

sions regulations, European certifications and has ICASA approval.

This advanced antenna system incorporates complex mathematical algorithms and signal processing techniques, similar to those that have been applied to military target acquisition and tracking systems. In fact, Barry tells us that the system has already proved itself in several military applications. “Using ITCS, it’s possible to complete a stock-take at a military encampment in 20 minutes,” he says.

Managing costsAccording to Barry, the antenna plays a large role in minimizing costs, since the system requires only a single antenna to do the work of multiple con-ventional RFID reader systems. One ITCS antenna can cover two or three adjacent dock doors in a warehouse. In retail applications, its reach can extend beyond the doorway of a store, providing

Barry Bateu

It’s the reason I shot to the States to secure the agency as soon as I heard about it

BARCODING, LABELLING, SCANNING & RFID

TH

E O

LD

SH

AN

GH

AI

FIR

EC

RA

CK

ER

FA

CT

OR

Y R

29

51

Mercedes-Benz South Africa (Pty) LTD is an authorised distributor of MITSUBISHI FUSO trucks.

Mitsubishi FUSO is backed by our very own assurance that you will always receive service that is uncompromising and unsurpassed.

We give you 100% every time.

WITH OURFETCHING

PROMISE TO YOU

QUALITYSERVICE

YOUR FUSOWE’LL KEEP

Our promise to you is a promise to deliver 100% service, 100%

of the time. From our inspections to our tools and equipment, we

ensure that our prices are reasonable and our work, transparent

so that we exceed your expectations from start to finish.

CALL Ø861 FUSO ØØ OR VISIT WWW.FUSO.CO.ZA AND CHOOSE FROM OVER 3Ø DEALERSHIPS NATIONWIDE

5B����B)8B6SO\&KQ�LQGG���� ������������������30

Page 10: SCT: Aug10

10 Supply Chain Today August 2010

far stronger controls against stock theft.

“I see tremendous opportunities in retail, where antenna could replace booms in shops to tell you

Zonal monitoring of inventory location and movement

Now it will be possible to predict theft, for example by monitoring stock that is moving towards doorways what is going out the door,” adds Barry. “Typical

systems will only let you know what’s leaving the store, but now it will be possible to predict theft, for example by monitoring stock that is moving towards doorways instead of sales counters.

“Information on the tag will also allow management to determine the level of ‘force’ required for the situation. A R2000 bottle of perfume may warrant firmer action than a R50 hat,” he laughs.

Stock managementOver and above stock theft, ITCS will also allow effective management of items by locating missing items as well as delivering real-time inventory visibility for multi-faceted improvements in op-erations. “Consider the fact that most shoppers won’t spend time looking for items that appear unavailable,” explains Barry.

“The system can advise management that a particular rack of jerseys is out of size 36s, for example. Or it can raise a note when it detects a maroon shirt in a rack of black ones. This way, shoppers can find what they want where they expect to find it.” In retail and other areas, these capabilities also lead to improved picking and replenishment process efficiency.

With applications spanning the gamut of tracking and identification applications, from inventory, capital assets, tools and even people, ITCS looks set to turn the RFID industry on its ear.

“I’ve been in the auto-id industry for 20 years and RFID has always been a neat technology but it’s never been really practical,” says Barry. “ITCS offers a new way of using RFID tags, providing opportunities for new applications. I think it will open up great avenues for the technology.”

Barry Baetu, Harmonic Solutions, Tel. 011 887 3333, email. [email protected], www.harmonicgroup.com

BARCODING, LABELLING, SCANNING & RFIDBARCODING, LABELLING, SCANNING & RFID

Fully gasketed heavy duty swing door.

Lightweight yet robust.

Withstands heavy traffic such as carts and

motorised man ridden vehicles.

Impervious to moisture, acid, petroleum products,

salt solutions, animal fats and insects.

INSULATED IMPACT TRAFFIC DOOR

Designed by Atomic Design Studio. Tel: (011) 422-1949Produced by Coralynne & Associates

APEXSTRIP CURTAINS

AND DOORS

TM

Page 11: SCT: Aug10

Supply Chain Today August 2010 11

BARCODING, LABELLING, SCANNING & RFID

S upply Chain Today” phoned local companies, searched the internet and spoke to several end-users who are

up in arms about the price of toner and ink replacement cartridges, es-pecially when they cost more than the printer itself. And it seems that printer manufacturers are not moved by the outcry about a product that costs ten times more per gram or millilitre than the most expensive caviar or perfume in the world.

Liquid gold?The Mnet actuality programme, Carte Blanche, delved into the matter comparing the price of fuel at R8 a litre, or perfume at R4 000 a litre, against that of printer ink that comes in at a staggering R20 000 a litre. That’s what it costs if you buy an OEM product. And no, it does not contain gold dust.

One journalist wrote: ‘Printer ink is one of the most expensive thing in the world when you break down how much it costs per millilitre. So why does it cost so much? Simply put, because they can.”

We are Being Ripped Off

Are South African’s, like the rest of the world, being ripped off when it comes to the price of toner and ink cartridges? The answer is a definite Yes! In fact, South African’s are doubly cheated as the already-inflated

price of toner and ink jet cartridges is much higher here than the exact same product overseas.

Making up the lossThe main manufacturers are not responding but we found one comment on the internet trying to justify the business model they all basically follow. “The dynamics in terms of the cost of the cartridge needs to be understood,” says one manufacturer. “As a consumer, I wouldn’t be looking at it in terms of what the cost is per litre or per gram, it’s about the yield that it can deliver. We typically don’t make money in terms of bringing the hardware to the market and in some instances we are investing in getting that printer there. So if the consumer after a short period of time says, ‘I don’t like this,’ and ditches it, it’s been an expensive exercise.”

Printer manufacturers argue they are pricing the hardware at a loss so that the printer sells and so they make up for it with cartridge sales. There are generic replacement cartridges on the market at a lower cost than the OEM’s, but everyone we spoke to is reluctant to use substitute products because they damage the printers by clogging the print head on ink printers, or the drum on laser printers.

The comparison he supplies speaks for itself

Example 1:The total costs calculated over five years, 15 000 pages per month, 20% density, A3 page, including initial price of printer and all consumables except paper.

Line Printer (500LPM, 24hr duty cycle) cost = R39 768

Versus

Laser printer (50ppm, A3, mono laser printer) cost = R589 444

Example 2:The total costs calculated over five years, 5 000 pages per month, 20% density, A4 page, including initial price of printer and all consumables except paper.

Dot Matrix Printer (80 column, 570cps printer) cost = R129 580

Versus

Laser Printer (28ppm, A4, mono laser printer) cost = R1 017 066

Page 12: SCT: Aug10

12 Supply Chain Today August 2010

BARCODING, LABELLING, SCANNING & RFID

As a consumer, I wouldn’t be looking at it in terms of what the cost is per litre or per gram

Insult to injurySounds a bit like the cellphone industry where you get the phone for ‘free’ but the minutes cost plenty. Here, of course, there is a lot more technology in a phone, a lot more functionality, a lot more infrastructure required and it doesn’t usually last less than a year and cost so much to fix it’s not worth the trouble.

To add insult to injury, the local cost of some original cartridges is much higher than the same brand and model in the United States. The com-panies we interviewed seemed to be complacent by simply accepting it as one of those things. But everyone’s ears twitched when we suggested there might just be an alternative available.

Most documents being printed are purely to have something clearly visible on paper. They are not printed for presentation purposes and so do not require the neat clean finish of a laser printer. Why then not use a line printer, or even a dot matrix printer for that matter?

An alternative“SA Mechanical Engineer” speaks to Rodney Bartman of Roan Systems who compares the long term costs of printing using different types of printers on a calculator they specially developed for this purpose. “Our clients who have converted to printing all their everyday internal printing on line printers will never look back, we’ve saved them millions in printer consumables,” he says. “Many companies do not consider lifecycle costs and don’t know what their printers cost them over the long term. They buy purely on initial acquisi-tion outlay but we’ve proved over and again that substantial costs can be saved by using different print technologies.”

Undoubtedly the price war in ink and laser cartridge replacement is here to stay in spite of generic replacements getting better and better all the time. As long as everyone is prepared to pay for the luxury of laser-printed documents for everything they print, the price just won’t come down. For those who are serious about lifecycle costs, there may be a way out.

Rodney Bartman. Roan Systems, Tel: (011) 462-8880, Email: [email protected]

Page 13: SCT: Aug10

Supply Chain Today August 2010 1�

Food for ThoughtWith the new Regulations relating to the Labelling and Advertising of Foodstuffs (R146 of 1 March 2010)

being introduced, manufacturers have to seriously review the way in which they’ve labelled products in the past.

Yolandé van der Riet

There were various loopholes that needed to be closed

BARCODING, LABELLING, SCANNING & RFID

S upply Chain Today” spoke to Yolandé van der Riet, nutritional specialist within the Food Safety Initiative (FSI) division at Consumer Goods Council of South Africa

(CGCSA), for some insight into the motivation behind the new Regulations, and how it will impact the local market.

The FSI – under the auspices of the CGCSA – is an industry associa-tion which renders a scientifically-based service to its mem-bers on food safety and nutrition mat-ters. FSI members thus benefit from this expert knowledge, along with the op-portunity to attend events such as the recent series of train-ing courses address-ing the mentioned Regulations. These courses are avail-able to anyone with an interest in the subject.

Revised regulationsAccording to Yolandé, the updated Regulations have been in the pipeline for some time. “This is a revision of R.2034/1993 of the Foodstuffs, Cosmetics and Disinfectants Act (Act 54 of 1972),” she tells us. “It was implemented in ’93, but the Department of Health has since realised there were various loopholes that needed to be closed in order to align it with international protocols and scientific research.” Some of the provisions in the new Regulations also relate to the World Health Organisation (WHO) and Food Agricultural Organisation’s (FAO) Global Strategy on Diet, Physical Activity & Health – an international initiative aimed at the improvement of human health worldwide.

“Although the revisions were introduced on 1st of March 2010, a commencement period of 12

months is granted for implementation of the majority of regulations. Until then, both sets of Regulations (R2034 and R146) will be applicable, in other words, “the old and new regulations will run in parallel until 1st of March 2011, allow-ing companies time to get their ducks in a row.” However, it should be noted that R2034 would still be utilised for the purposes of law enforce-ment until 1st March next year.

Protecting the consumer “A number of issues have been addressed, principally for the protecting and informing of the consumer,” Yolandé continues. “For instance, the existing list of definitions has been extended, sections pertaining to allergens have been updated and stipulations in terms of nutrient content claims are more comprehensive. Every food manufacturer will now have to go back to their labels to see whether they comply or not.”

The intention of the new Regulations is to provide consumers with the means to make informed food choices, as well as limiting the potential for misleading some consumers with information that is either accidentally or deliberately ambiguous. “The Department of Health wants to ensure that all claims on labels are truthful and have sufficient substantiation” explains Yolandé. “The Consumer Protection Act will most probably also drive this and consumers will become more aware of what they consume.”

Page 14: SCT: Aug10

1� Supply Chain Today August 2010

Updated rulesAccording to information available on the Department of Health website (www.doh.gov.za), new labels will be required to indicate “Use by” dates to maintain food safety by avoiding microbial growth due to decay. “Best before” dates will be mandatory for non-perishables to ensure optimum freshness of these products.

The DOH adds that consumer health will also be protected by the inclu-sion of a declaration of common food allergens. In addition to this, labels will need to provide information about the contents of the product, such as colourants and preservatives. If labelling information is checked for correctness, for example by an inspector, producers will be required to support the validity thereof within 48 hours.

The DOH further stipulates that in instances where emphasis is placed on a specific ingredient, such as olive oil in margarine for example, manu-facturers will be expected to provide Quantitative Ingredient Declarations (QUID) to indicate percentages of the ingredient indicated. Comparative claims, such as “low fat” vs “reduced fat” will come under scrutiny too.

Returning to an FSI perspective, Yolandé continues, saying: “We’ll also be seeing closer attention paid to ‘negative’ claims. For example, saying that your brand of rooibos tea is caffeine-free is confusing since all rooibos teas are generally caffeine free.”

Accountability“Each word and image should have real meaning and should be justifi-able,” she tells us. “It should further be noted that the title of these Regu-lations refers to both labelling and advertising; thus being regarded as one entity. All players should be working towards providing honest and complete information so that the consumer can make healthy choices.”

The new Regulations form part of phase 1 of the initiative. The second phase of the process will most probably relate to further food labelling-related matters including the development of a nutrient profiling model suitable and applicable

Labels will provide consumers with information with which to make informed nutritional decisions

to South African conditions. It might also address issues such as health claims on foodstuffs; serving sizes; and the Glycaemic Index (GI).

“Basically, the goal is to inform the consumer, protect the consumer, and also protect the manu-facturer who has ensured accurate and honest labelling,” concludes Yolandé.

Linda Brink, CGCSA, Tel. 011 789 5777, email. [email protected], www.cgcsa.co.za

Saying that your brand of rooibos tea is caffeine-free is confusing since all rooibos teas are generally caffeine free

BARCODING, LABELLING, SCANNING & RFID

Companies will now need to validate advertising claims on packaging

Page 15: SCT: Aug10

Supply Chain Today August 2010 1�

Cashing in on Cash ‘n CarryFinding a niche in a highly competitive market is no small feat, but Stan-ley Aucamp is a determined man. The MD of E. S. E. Manufacturing (Pty Ltd) has cashed in on a growing South African trend which is reaping rich

rewards for the company.

If they don’t get up to scratch, the guy next door will take over their business

Tidy, attractive shelving encourages shoppers to purchase bulk items

Stanley Aucamp

RACKING AND SHELVING

W hen “Supply Chain Today” meets Stan at his Pretoria offices, he shows us a pile of paperwork for projects in progress that would have any rack-

ing and shelving specialist dancing with delight. “Cash ‘n Carry stores make up 30-40% of our business,” he says, showing us floorplans for a number of huge facilities. The stores are vast, with

a recent job in Polokwane measuring 8000m2 and boasting 86 till points. “We specialise in revamps of existing installations, where we’ll respray and repair existing equipment and replace outdated systems to give the facility a new look.”

Good designAlthough bulk retail outlets may not immediately spring to mind as examples of ground breaking design, Stan soon sets us straight in terms of the importance of a well-planned outlet. “An organ-ised flow of storage equipment makes it easier to sell volumes,” he assures us. It becomes clear that intelligent shop fitting is about encourag-ing shoppers to buy more items, with attractive layout and pleasant colour schemes enhancing the experience.

“Even high volume retailers can benefit from a modern look, and companies are realising that if they don’t get up to scratch, the guy next door will take over their business. Since racking can be a costly purchase, many will invest in the process by upgrading a row per month. If they

Page 16: SCT: Aug10

1� Supply Chain Today August 2010

don’t upgrade annually, it could cost them millions by the time they get to it,” he adds.

With shopfittings covering everything from stan-dard racking to items such as broom racks, sweet baskets and storages for chips, there’s more to a successful installation than you might imagine.

“There are numerous ways of using equipment to optimise capacity,” Stan continues. “For instance, heavy items are stored on heavy duty shelving, with lighter goods kept tidy in gondolas. We also replace lightweight shelving with heavy duty to carry more weight.” ESE’s product range includes some extremely sturdy equipment, with a new structural system designed to span up to six metres with a loading of 1.5 tonnes per metre.

Planning flowBefore items are specified, however, it’s vital to get the plan right. A successful installation starts at the drawing board and Stan shows us detailed diagrams which dictate everything from the layout of racking, to what items will be packed on each shelf. ESE remains involved from inception through to the very last stages of completion.

“When planning the flow of the racking, we study shopper mentality to get an understanding of how the average person would move through the store and what items they would pack first. We’ll also check sales of products to ensure that fast moving lines are made accessible.

“I gain a lot of insight from following the retail trends reflected by industry giants like Pick n Pay,” he acknowledges. “For instance, we’ve learned to accommodate shopping requirements for ease of packing. Heavier items should be

placed at the bottom of the trolley with lighter ones on top to avoid damage, so we organise the aisles to allow for this. Also, by packing products neatly in uniform colour schemes, customers can see exactly what’s available without having to search for it. Some stores as-sign staff to each aisle to ensure that this order is maintained.”

Small guys tooAccording to Stan the cash ‘n carry wave often begins as a ripple, with small vendors who set up shop to sell items they’ve bought in bulk elsewhere. “We see about 20% of our business coming from the small guys, buying for one or two thousand rand at a time. I have about seven guys in Soweto with stores the size of a garage. Every month they come in and spend a little more because even they realise the importance of organisation.” No doubt the company’s 45% BEE shareholding approves of this particular market sector.

“Here, cost is certainly a consideration. Nowadays a small setup can amount to a large bill; obviously the higher the volume, the cheaper the unit price,” he admits. “We manage costs by incorpo-rating new and second-hand equipment and plan for ease of expansion four or five years down the line.” These en-trepreneurs invariably grow bigger and when they do, Stan’s the man they turn to for their larger installations. Judging from the wealth of healthy contracts the company’s handling at the moment, it’s a strategy that has paid off.

Stanley Aucamp, ESE Manufacturing, Tel. 086 010 3292, Fax. 012 800 4212, email. [email protected], www.ese-sa.co.za

I have about seven guys in Soweto with stores the size of a garage. Every month they come in and spend a little more

RACKING AND SHELVING

Products should be arranged so that customers can clearly see what is available

Page 17: SCT: Aug10

Supply Chain Today August 2010 1�

Toughing It OutTough economic climates call for innovative thinking and very often, this involves reviewing existing processes

and refining the system. This approach has given many companies fresh insight into their own operations.

A mezzanine floor installation

It goes beyond simply installing shelving, storage or conveyor systems

RACKING AND SHELVING

Ron Bonthuys

W e’ve been exploring methods of improving our current offerings and the customer service sector has been our focal point,” Ron Bonthuys of

Dexion Cape tells “Supply Chain Today”. As a supplier of racking, shelving, mezzanine floors and small parts storage, Dexion has witnessed first-hand the fluctuations of the warehousing market and has adapted accordingly.

“Networking and referrals have always provided the bulk of our business, so it made sense to capitalise on this. It’s a matter of fostering good associations with existing clients,” he emphasises.

Good relationships“We are fortunate to have a number of loyal

customers with whom we have built solid rela-tionships with over the years,” says Ron. “One such customer is Digistics, who warehouse and distribute for two large, iconic fast food outlets. Digistics has a number of large freezer and am-bient distribution centres located around South Africa, for which we have supplied high-rise pallet racking and drive-in racking.

Page 18: SCT: Aug10

1� Supply Chain Today August 2010

TH

E O

LD

SH

AN

GH

AI FIR

EC

RA

CK

ER

FA

CT

OR

Y R

2991

A division of Mercedes-Benz South Africa (Pty) Ltd

QUALITY SERVICE

ON ROLLING.JUST KEEPTHE WHEELSASSURANCE,

WITH 100%

Expect 100% results, Expect 100% updates, quick turnaround and no nonsense focus

on your every concern. Because from our parts to our heart, our staff to our craft and

everything between, 100% is what you can rely on because we’re 100% committed.

It takes a lot to stop a Freightliner.

CALL 0861 114 001 OR VISIT WWW.FREIGHTLINER.CO.ZA AND CHOOSE FROM OVER 20 DEALERSHIPS NATIONWIDE

5B�����)/�%XON�+DQGOLQJ����[����LQGG���� �������������������$0

Page 19: SCT: Aug10

Supply Chain Today August 2010 1�

“We monitor their racking on a regular basis, as with our other customers, and provide inspection reports with the required remedial action in order to keep the racking systems in a safe condition.” Dexion’s regular inspection service includes audit, reporting and recommendations, offering clients peace of mind regarding the safety and functionality of their equipment.

Project potential“It’s important to recognise that every project has the potential to win you more business down the line, both with the original client and with those who see your work. It goes beyond simply installing shelving, storage or conveyor systems. It’s necessary to advise on the best possible sys-tem and design for optimum efficiency using the latest technology so that your client is absolutely satisfied with the result.

“Each job needs to take you further. This can be particularly challenging during hard times when projects are not as lucrative as they may have been in the past,” he admits. “The issue has compelled us to streamline operations further, as well as look to options that make us more competitive. We’ve developed an exciting relationship with Dexion Australia, which is capable of providing materials at very accessible prices.”

As a manufacturer that supplies to the greater Australasian market, sheer volume keeps produc-tion costs down, allowing Dexion’s Australian division to supply products at costs that give Dexion Cape a vital edge in a sector that’s seen some serious belt-tightening in recent times.

Back to work“Now that the excitement of the World Cup is eas-ing, people are realising that it’s time to knuckle down and get back to work, but the feeling is generally more positive than it’s been in a long time,” Ron tells us.

“We have a lot in the pipeline right now. We’ve been looking at new ways of exploring and ex-panding into the market, broadening our horizons by looking into Africa, which has tremendous room for growth.

“The global interest in our continent will bring tremendous opportunities, and we’ve already handled installations for foreign aid organisa-tions,” he says. Certainly seems to be a case of growth through adversity, and with any luck, the survivors of the economic crunch will emerge stronger than before.

Ron Bonthuys, Dexion Cape, Tel. 021 552 0220, email. [email protected], www.dexioncape.co.za

Dexion supplied high-rise pallet racking and drive-in racking for Digistics distribution centres around South Africa

We’ve already handled installations for foreign aid organisations

RACKING AND SHELVING

TH

E O

LD

SH

AN

GH

AI FIR

EC

RA

CK

ER

FA

CT

OR

Y R

2991

A division of Mercedes-Benz South Africa (Pty) Ltd

QUALITY SERVICE

ON ROLLING.JUST KEEPTHE WHEELSASSURANCE,

WITH 100%

Expect 100% results, Expect 100% updates, quick turnaround and no nonsense focus

on your every concern. Because from our parts to our heart, our staff to our craft and

everything between, 100% is what you can rely on because we’re 100% committed.

It takes a lot to stop a Freightliner.

CALL 0861 114 001 OR VISIT WWW.FREIGHTLINER.CO.ZA AND CHOOSE FROM OVER 20 DEALERSHIPS NATIONWIDE

5B�����)/�%XON�+DQGOLQJ����[����LQGG���� �������������������$0

Page 20: SCT: Aug10

20 Supply Chain Today August 2010

Market Forum

Satisfying the palateSending wine all over South Africa and to more than 35 countries around the world, Robertson Winery in the Breede River Valley requires round-the-clock reliability in the logistics department. To help meet tough distribution demands, the winery has invested in next-generation Hyster electric forklift technology from Barloworld Handling.

The most recent forklift upgrade at Robertson Winery, one of the largest wine producers in South Africa, involved 13 two-tonne Hyster J2.0XN machines acquired on a 84-month full-maintenance rental contract. The winery also uses two previously acquired 2.5 tonne Hyster ACX forklifts fitted with push-pull attachments for container loading, and a 1.75 tonne Hyster on short-term rental.

Robertson Winery was the first South African company to acquire forklifts from the new Hyster JXN electric range – testament to its experience of Hyster and Barloworld Handling over the past ten years.

“Hyster forklifts are reliable, durable and operator friendly, and we receive excellent service and support from Bar-loworld Handling, with a fast response time from their area-based technician,” says Robertson Winery technical manager Bartho West. “Breakdowns are minimal and any problems solved quickly and efficiently.”

The Hyster JXN series incorporates a range of next-generation productivity-enhancing features. These include a zero-turn capability that is an industry first for four-wheel machines at the lighter end of the counterbalanced scale.

“Together with the compact JXN chassis design, the zero turning radius axle enables fast manoeuvring in tight aisles

Hyster JXN forklifts feature a zero turning radius steer axle

or congested loading bays to speed up load handling,” says Bartho.

Hyster designed the JXN operating environment to main-tain comfort and performance for an entire shift. Features include a full suspension seat to enhance ride comfort and reduce whole-body vibration levels, maximum forward and fork tip visibility, a “heads-up” information display, easy on-off access, more than ample foot space and a fully adjustable steering column.

Virtually maintenance-free components such as wet disc brakes and brushless AC motors mean that JXN trucks require a full service check only after 1 000 hours

Barloworld Handling, Heidi Gouws Tel: (011) 898.0100, Email: [email protected]

Image lifted to new heights The reputation and status of Jungheinrich in South Africa is set to be regenerated with a re-launch of the global company’s range of materials handling machinery, through an association with a local entity, JHR Equipment SA.

German-based Jungheinrich is internationally-recognised as one of the world’s top three leading manufacturers of forklift trucks and materials handling equipment, employing more than 8 000 people in over 100 countries. However, during the number of years it has been active in South Africa,

Page 21: SCT: Aug10

Supply Chain Today August 2010 21

the company has not met its South African market projections as a result of insufficient representation.

It was for this reason that JHR Equipment SA was set up as the exclu-sive regional partner to offer the complete range of this product, as well as provide backup ser-vice and spares avail-ability.

According to JHR Equip-ment SA chairman, Alan

Keschner, “In the past, a few local distributors sold other brands of standard forklifts as well, and were thus only able to sell specialised Jungheinrich warehousing related machines - effectively reducing the ability for clients to select and standardise on the Jungheinrich brand.”

Jungheinrich is a well-respected company with a reputa-tion for building top-quality equipment. “In South Africa, however, it has been unable to realise its potential during the many years that it has been competing in the mar-ket,” explains Alan. “Instead, products were often sold as second-string, and servicing was not up to Jungheinrich’s expectations, due to the fact that the Jungheinrich brand was sometimes in competition within their own range of products.”

JHR Equipment SA, Colin Govender, 082 322 7723, Email: [email protected], www.jhrequipmentsa.co.za

Alan Keschner

Market Forum

Reducing wastage The extreme fluctuations in the weather being experienced over the past few months can cause havoc in environments where temperature and humidity control are major issues. Spoilage of food, pharmaceutical or other temperature sensitive products because of unwanted exposure to exces-sive heat or humidity is costly and a major inconvenience to the market.

Apex Strip Curtains has spent the past 27 years research-ing, engineering, manufacturing and perfecting a range of products that will significantly aid the control of ambient temperature in production, processing and packaging facilities as well as in grocery stores.

The Balledge design on the company’s general strip cur-tains allows for optimum sealing and temperature control while ensuring that the individual strips do not snag or scratch goods and people moving through the opening. This feature also strengthens the strips, ensuring a longer life, even in the harshest applications.

“The carefully engineered and formulated PVC material used for the strip curtains is durable and even over time

remains flexible and transparent for complete visibility from both sides,” says Wim Dessing, managing director of Apex Strip Curtains.

Two types of doors are available from Apex, the Apex SR 9000 insulated impact heavy duty traffic door and the Apex high speed roll-up and fold-up door.

Apex Strip Curtains, Wim Dessing, Tel: (011) 452 8723, www.apex-strip.co.za

A decade of successPsion Teklogix has celebrated 10 years of success and growth in the Southern African market.

According to previous Country Manager, Raymond Hoy, when Psion Teklogix entered the South African market 10 years ago, the team was confident of achieving success in the local market. The company achieved an exceptional track record, by not only reaching, but exceeding the planned target within the first five years. “We sustained a 50% growth pattern, an unprecedented achievement in any language and the company continues to excel because it can rely on of a team of loyal, professional people to support the company’s exceptional service offering,” com-ments Raymond.

Michelle Hollis, Psion Teklogix Country Manager agrees wholeheartedly and says that financial storms as well as the ups and the downs come with the territory when a company has shared 10 years with local industry. “Throughout the 10 years, focus on our core values of service and product excellence never wavered and I am convinced that this is one of the most important contributory factors to the company’s continuing strong track record.”

Psion Teklogix was ready to answer the call when local

Apex high speed roll up door

Page 22: SCT: Aug10

22 Supply Chain Today August 2010

Market Forum

Green is gold Serco, manufacturers of truck bodies and trail-ers, continues to make impressive advancements to reduce the weight of its products so as to reduce the CO2 emissions.

Managing Director of Serco, Clinton Holcroft, says they are looking at various initiatives to be cleaner, leaner and greener. “We can make a difference by innovations in our design technology where I believe we are already ahead of our com-petitors. The official policy is that Serco cares for the environment and will go the extra mile to reduce its carbon footprint.”

The company has recently completed the delivery of 26 dry freight truck bodies and 14 semi-trailers for Unitrans Freight with the vehicles being used to transport goods for Pick n Pay’s Longmeadow distribu-tion centre in Johannesburg.

The bodies are 8.85m long and have two-tonne Slider tail lifts with the Wisa wire birch ply floor which is

hard wearing and ultra lightweight. The bodies were also fitted with Serco’s new profiled galvanised steel sidewall scuff plates.

Clinton says the new ply floor saves up to 50% of the weight compared to the current steel jack design.

Being much lighter than the norm, the bodies offer the potential for significant savings in fuel consumption and thus lower CO2 emissions.

In addition to the ply floor, Serco’s aluminium flooring being used by on its refrigerated vehicles also offers sig-nificant weight savings.

“The floor surface is designed for low noise emission, particularly when running forklifts and pallet jacks. The high grade aluminium used is the key to weight saving over the current aluminium reefer floorings available,” he says.

Serco, Clinton Holcroft, Tel: (031) 508 1000

retailers and 3PL’s needed ‘Voice Picking’ solutions to remain competitive in the global environment and to be on par with how picking was conducted in their international subsidiaries and competitors.

“Our first ‘Speech Directed’ site in South Africa went in in 2006 and we are still the market leader due to the level of experience and expertise we offer. Psion Teklogix has invested heavily in Speech Directed technology and we have a large client base in S.A. and internationally,” Michelle says.

Psion Teklogix had installed over 1 500 voice picking terminals locally, and growth continues as more major retail chains change to a voice picking system to increase accuracy and productivity.

It is only fitting that during Psion Teklogix South Africa’s 10th anniversary, Teklogix is launching a range of innova-tive tools in the voice environment, and on the handheld side there will be some rather exciting new products to address the requirements of diverse markets.

Psion Teklogix, Michelle Hollis, Tel: (011) 805 7440, Fax: (011) 805 7444, Email:[email protected]

Serco has recently completed the delivery of 26 dry freight truck bodies and 14 semi-trailers for unitrans freight

Page 23: SCT: Aug10

Supply Chain Today August 2010 2�

In For The High JumpIt’s no secret that the complexities of warehouse management make Warehouse Management Systems a ne-

cessity in any well-organised facility. The question is how to choose the best product when the deluge of IT

jargon is so overwhelming that it’s difficult to compare.

HighJump Supply Chain Advantage Suite

An 80/20 split, where 80% of our design is standard best practices and 20% of the design is unique to the company

WAREHOUSE MANAGEMENT SYSTEMS

W hen “Supply Chain Today” speaks to Richard Evans, MD of iWMS, the local distributor of HighJump Software, it’s clear we’ve come to

the right person for insight. Having come from a position at Microsoft in Seattle, Richard’s un-derstanding of information technology is clearly a cut above the rest. When partner and former HighJump employee, Greg Robertson was picked by HighJump Software to establish a South Af-rican distributorship of the software in response to interest from Mr Price Group Limited, Richard was quick to get involved.

“From day one I have been very excited about HighJump,” he tells us candidly. “It offers aspects that I’ve never had available in my many years in the software industry, the main draw cards being its incredible flexibility, the fact that HighJump will support customer and partner modifications and

the ease of upgrade.” He explains that HighJump is able to do this by using a customisable process-driven approach to warehousing and a layered software architecture.

Implementation“Once the deal is signed, we’ll meet with the cli-ent for a ‘define’ session,” he says. “Here we’ll get all the company’s experts into a room with our top technical guys to discuss and agree how all the processes should function in the ware-house. Our technical team brings years of supply chain experience and a deep upstanding of the best practices that come standard in HighJump while the company’s experts bring the in depth knowledge of their warehouse’s processes and the vision of where they would like to take the warehouse.

“We normally target an 80/20 split, where 80% of our design is standard best practices and 20% of the design is unique to the company. The 20% is often where the company is looking to use their supply chain to gain an advantage over their competition.

Page 24: SCT: Aug10

2� Supply Chain Today August 2010

Beyond 2010An insight into the challenges that lie ahead in the next decade and the role that Supply Chain and Operations Management professionals play in moving South Africa forwards.

28 October - Durban5 November - Cape Town

The SAPICS Regional Conferences, bringing supply chain excellence to you.

Visit www.sapics.org.za for full details regarding the registration process, programme and workshop details.

Sponsors:

T: 011 023 6707, F: 086 575 [email protected]. www.sapics.org.za

Page 25: SCT: Aug10

Supply Chain Today August 2010 2�

“Once we’ve determined the steps to take, we’ll start the implementation phase, which can take anywhere from two and a half to nine months. We have checkpoints along the way to review and identify possible problems or improvements. Finally, we test the entire system, getting the customer involved to fine-tune the process.

“Efficiency and visibility are the key advantage of a WMS,” he adds. “The workforce becomes directed. Using RF devices pickers are given di-rections, with the programme viewing the entire workload and, for example, setting optimum pick paths. The visibility benefits are available because of the level of detail tracked by HighJump. For example, the system tracks all movement in the warehouse and allows the user to see exactly what has been done to each item and where each item is, to the extent that it can tell you if an item is in transit on a fork.

“The programme architecture works in ‘layers’,” Richard continues. “This allows users to upgrade specific areas without needing to change other areas. You can upgrade the technology layer without changing your business processes and vice versa. This also means that the upgrade is easy to do and we have many examples where our clients have implemented upgrades themselves overnight or on public holidays and been ready for work the next day.

Racing stripes“Adjusting the system is simple, for example Fox Racing in the States, have procedures that require regular adjustments. Fox rolls out a new application every week, planning implementation on Monday with changes going live by Friday.

“This has allowed them to streamline their processes continuously since they started using the software,” he says. “It’s useful that clients are able to make their own changes and feel confident that things will run smoothly. The best part of this is that all documented changes will be supported by both the iWMS and HighJump support teams. You don’t generally see both this level of flexibility and supportability in software packages.”

A supplier of action sports gear, Fox Racing’s facilities can handle up to 2 000 orders a day, with many of its products being seasonal, requiring fluctuating volumes of different lines throughout the year. This calls for high-speed turnaround time with no room for error. With HighJump, picking rates have increased dramatically. “Before, their best pickers were handling 40 to 50 lines an hour,” Richard tells us. “Now they expect a brand new picker to do 100 lines an hour, and the time-consuming task of returning miss-picks has been almost entirely eradicated.”

Surf’s upIn another case, outdoor clothing company,

Quiksilver, was able to improve output by let-ting HighJump take over the work of planning warehouse management. From humble begin-nings, the brand gained rapid popularity to the point that demand was outstripping capacity. The team had to receive hundreds of thousands of different items and ship them accurately and on time to thousands of customers with varying order profiles – all in an industry where inventory changes seasonally.

“Installing HighJump not only allowed Quiksilver to rationalise activities such as picking, put-away, inventory control and cycle counting, but also to improve output patterns that were specific to the company,” says Richard. Previously, inventory checks had been a costly procedure, taking up valuable working hours. This has been replaced by an interleave cycle counting process which negates the need for physical inventories.

Catching a waveThe company also implemented HighJump’s wave planning solution to speed up high-volume order fulfillment, allowing Quiksilver to carry out

Now they expect a brand new picker to do 100 lines an hour

WAREHOUSE MANAGEMENT SYSTEMS

Beyond 2010An insight into the challenges that lie ahead in the next decade and the role that Supply Chain and Operations Management professionals play in moving South Africa forwards.

28 October - Durban5 November - Cape Town

The SAPICS Regional Conferences, bringing supply chain excellence to you.

Visit www.sapics.org.za for full details regarding the registration process, programme and workshop details.

Sponsors:

T: 011 023 6707, F: 086 575 [email protected]. www.sapics.org.za

Page 26: SCT: Aug10

2� Supply Chain Today August 2010

‘dynamic pull’ picking, for faster picking and shipping of large orders to major retailers. A new cross-dock function called ‘hot pick pack’ links incoming items to outgoing orders for seamless flow of inventory.

As a result, turnaround has increased, with picking and packing figures doubling and order processing dropping from a week to just one day. “Here, as with Fox Racing, the flexibility was the primary advantage,” he adds. “Work-flow becomes so visible that companies can get a clear overview to develop strategies for future changes, by introducing automation equipment, for example.”

For those looking to take the leap on a smaller scale, HighJump Warehouse Advantage Express is a condensed version that can be implemented in a short period of time and at a much lower price point. HighJump Warehouse Advantage Express is using the same software as the full version so it can be expanded to provide full functionality at any time.

“We wanted to bring something to the market that wasn’t available here, so that we were add-ing something new,” smiles Richard in closing. “I think HighJump fits the bill.”

Richard Evans, iWMS, Tel. 079 566 8557, email. [email protected], www.iwms.co.za

WAREHOUSE MANAGEMENT SYSTEMS

The software has been extremely successful in the fast-paced garment industry

Turnaround has increased, with picking and packing figures doubling

Page 27: SCT: Aug10

Supply Chain Today August 2010 2�

Take The Market by Storm

Murison Kotzé

OUTSOURCING

M anufacturing is a highly complex undertaking with many variables and thus, it is important to choose a part-ner, not merely a “service provider”

that can produce your product cost-effectively, to the highest standards and in accordance with your requirements, while providing expert guid-ance and advice.

But first take a moment to consider your next step carefully. Besides the design process, into which you’ve poured enormous energy and commitment, manufacturing is the most crucial stage of bringing a product to market. Making a poor decision now could destroy your product’s chances in the market just as surely as a poor design would.

“When outsourcing, you are endeavouring to achieve the transference of risks inherent in the manu-facturing process to your manufacturing partner. Care needs to be taken to partner with a provider that can successfully assume this risk, allowing

The decision to outsource manufacturing of your product is not an easy one to make. There is often a perceived risk in relinquishing business processes involved in manufacturing of the product. However, due to increasingly challenging economic conditions, there is an even greater risk of losing focus on core business functions if your outsourced partner is diverting precious resources to the manufactur-

ing process which could be outsourced.

for maximising of margins for both parties,” says Murison Kotzé, who heads up Tel-lumat Elec-tronic Manu-facturing.

C o m p a n i e s with limited manufactur-ing or design capacity of-ten selective-ly outsource some of the production ac-tivities, choos-ing to retain the balance “in-house”. “More often than not we find that an initially cautious approach leads to the outsourcing of more business processes, as they experience the benefits for themselves.

All-round qualitiesHe goes on to say that a partner

with a full turnkey offer-ing (ranging from design, prototyping and sourcing to manufacturing, testing and even logistic services) is first prize.

Regarding a choice between a full turnkey manufacturer and one who only offers limited services such as assembly only, Murison

points out that market conditions and company strategies are subject to change, and one’s requirements with it. Will your

choice of manufacturer still be able to accommodate you when

you decide to outsource another step in the process tomorrow?

Ranging from design, prototyping and sourcing to manu-facturing, testing and even logistic services

Page 28: SCT: Aug10

2� Supply Chain Today August 2010

As an example of the need for a manufacturer to accommodate variable volumes, he explains that a product’s pre-production phase typically involves low volumes, whereas full production escalates that requirement.

“It would be exceedingly disruptive to switch from one manufacturer to another halfway through production,” he comments. It may also be that your product is comprised of both high volume as well as low volume components and again, making the right choice in a contract manufac-turer would mean that these requirements are well catered for.

New products“At Tellumat we encourage our customers to engage with us during the initial stages of the design process. This enables us to give vital input with regards to design for manufacturability of the product,” Murison says.

“Engineers who design in isolation are often only concerned about the functionality of the product, forgetting about ‘manufacturability’. Engaging with the appropriate manufacturer during the design phase will help customers design with efficient manufacturing in mind. This will ensure that a high ‘first-pass yield’ (low failure rate) is achieved with no need for costly re-designs, as well as a reduction of manufacturing costs and time to market.”

Of course, this means having to select a manufac-turer with engineering expertise and experience and a good question to ask your prospective manufacturer is ‘How many engineers do you have?’ advises Murison.

Cost Murison says cost is often cited as a major reason why some customers opt for “Low Cost” Eastern

A few other considerations to bear in mind when selecting a partner are:

- Do they have a track record of ‘incubating’ new products?

- Are they geared for efficient data-pack transfer, configuration management and procurement?

- Can they handle production in prototype, pre-production and high volumes?

- Do they have the ability to design test fixtures and soft-ware?

- Would they be able to assist with design qualification, includ-ing environmental considerations?

- Do they have experience in obtaining product type approvals and certifications?

OUTSOURCING

manufacturers, but the truth is that South African manufacturers can today provide the same or a better service at a comparable cost.”

“It is still possible to achieve manufacturing cost savings in some cases, but these will often be eroded by the additional resources required to manage production in the East, often necessi-tating on-site personnel, researching production sites, and the logistics involved in shipping your product back to South Africa. There is also the very real possibility of having your intellectual property compromised, and you can’t always be sure that only original, quality components are used in making your product,” he adds.

“In addition, while local manufacturers have in the past struggled to source components at competitive prices, the South African components distribution industry is improving constantly.”

Proximity “Companies sometimes base their decision almost solely on proximity, as this allows them to be able to spend time at the manufacturer to sort out problems when they occur. This reasoning is, however, flawed. Firstly, if there are many issues that your manufacturer can’t resolve without your assistance, it probably means that they do not have the appropriately skilled people and may mean that you have chosen the wrong partner.

Secondly, outsourcing entails relinquishing a non-core business process. If you have to spend an excessive amount of time at your manufacturer then you aren’t really outsourcing this business process, you’ve just moved your manufacturing premises.”

Bottom lineOne’s choice of contract manufacturer is a weighty issue that ultimately comes down to being able to check the boxes next to some key factors. Even in a country with good manufacturing credentials like South Africa, it is important to ask the right questions.

Tellumat, Murison Kotzé, Tel: (021) 710 2241, Cell: 082 823 5924, Email: [email protected]

It is important to choose a partner, not merely a “service provider”

Page 29: SCT: Aug10

Supply Chain Today August 2010 2�

I t’s flexible packages, ie, film packages, that are in particularly strong demand because of the low cost of materials and production and their broad range of applications. Because of

their low weight, they help to conserve resources and also offer good scope for recycling.

The use of flexible packages in the food and bev-erages industry and in the pharmaceutical and cosmetics industry is encouraged by the materi-als’ hygienic qualities and long shelf life. Further development with breathable films, microwave- and freezer-safe films, and biodegradable films

Functional PackagingIntelligent packages that satisfy many criteria in addition to supplying the necessary consumer information are

on the advance, and not only where foods are concerned.

By combining two or three different types of polymer, it is often possible to save on material

is also spurring their growing use. Even today, plastic films meet about three quarters of global demand for flexible packages.

Increased demandAccording to a study by the US Freedonia Group, global demand for flexible packages will rise by an average of about 3.5% per annum in the coming years from a good 16 million tonnes in 2008 to ultimately almost 19.5 million tonnes in 2013. The market researchers expect the fastest growth in the developing regions of Asia, Latin America, Eastern Europe and Africa as well as in the Middle East.

Industrial films usually 3-layerIndustrial film is the term usually given to those films that are employed, for example, as shrink

film hoods, stretch films or as packaging for industrial goods, and films sold by the film producer to industry as raw stock for convert-ing. Polyolefins are mainly used for the production of industrial films and principal grades of PE.

The market today is dominated by 3-layer film composites. By com-bining two or three different types of polymer, it is often possible to save on material while enhancing functionality at the same time, an important factor for a production line’s cost-effectiveness.

Consumer habitsIn the industrialised nations, the reasons for the increasing use of flexible food packages made of plastic can also be found above all in changing consumer habits. There is constant growth in the consumption of ready-to-serve meals, the range of foods is fast-expanding and, finally, the growing desire for an appealing package exterior is becoming increasingly important.

Film composites have become established for consumer packages and particularly food packages. 5-layer films are standard, and 7- and 9-layer composites are by no means rare today. Extrusion line manufacturers are giving the

SUSTAINABILITY

The first blow heads for 11-layer films are already in operation

Page 30: SCT: Aug10

�0 Supply Chain Today August 2010

With the latest die technologies, cast films with strong barrier properties can be produced in up to 27 layers.

In both cast and blown film lines, virtually all machine makers today use energy-saving and maintenance-free AC motors or, in some cases for reasons for space, direct drives instead of con-ventional motor-gearbox versions.

Always a crucial element in the pro-duction of blown films is the blow head. Together with suitable film cooling and gauge control, it ensures a high extruder rate and film quality. Most recently, considerable advances have been made in film cooling with a variety of approaches. At K 2010 from 27 October to 3 November in Düsseldorf, the No. 1 for Plastics and Rubber Worldwide, many of these new developments will be on show.

Bio- and recycled materialsWhile grades of polyolefin combined with bar-rier materials such as polyamides and EVOH are usually employed on a blown film line for the production of food films, PET has long estab-lished itself as the “mass plastic” for cast films. The endeavors of many companies to efficiently recycle PET have come to fruition. One obstacle, however, continues to be the approval of grades of so-called rPET (recycled PET) for repeat use in direct contact with foods.

Already established are many processes for the production of multi-layer film composites in which rPET is employed as the middle layer. Thanks to ongoing improvements in machine technology, rPET made of processed post-consumer PET wastes and ground bottles is now in use for food packages and for the packaging of deep-frozen ready-to-serve meals.

Across the board, biomaterials have been on the advance for some time now, but only recently in connection with food packages. For instance, carbon-neutral film products made of PE and from renewable resources have been attracting attention. The main reasons for the expanding use of biomaterials can be found above all in resource conservation, compostability and sus-tainability. However, a biodegradable material or a material based on biological raw materials is not necessarily greener and more sustainable than a conventional plastic. All the same, growing environmental awareness and the discussion of the pros and cons of various categories of materi-als have initiated a multitude of innovations to conserve resources.

Eva Rugenstein/Desislava Angelova, Email: [email protected] or [email protected]

For this coextruded bag for apples, maize starch was used as the basic material, thus making it compostable

There is constant growth in the consumption of ready-to-serve meals

SUSTAINABILITY

processor extra flexibility by enabling it to produce as many different products as possible on a single line without retooling, e.g. 3- and 5-layer films.

Page 31: SCT: Aug10

Supply Chain Today August 2010 �1

W ith an achievement of 24 gross crane moves per hour (GCH) on average during July 2010, the Cape Town Terminal enjoyed a 9% improvement

from June’s recorded average of 22 GCH. The overall Transnet target is 26 GCH.

Improved performanceVelile Dube, the new Regional Terminal Executive for TPT’s Western Province operations, attributed the improved performance in July to a reduction

Container Terminal Leads in ProductivityBetter planning and streamlining of operations has given Cape Town’s container terminal the lead in productivity among the five container facilities operated by Transnet Port Terminals

(TPT) in South Africa

in force majeure disruptions caused by inclement weather, as well as improved employee skills as operators become more proficient in handling the new equipment procured as part of the terminal’s five year capacity creation project.

The equipment includes new Super Post Panamax ship-to-shore (STS) cranes and rubber tyred gantry (RTG) cranes. Decreased stack congestion in the terminal has encouraged a smoother operational flow. Velile says, “We have managed to strike a balance in the availability of resources to meet operational demand and have also systematically improved productivity in our RTG crane opera-tions.”

New cranesThe new STS cranes give the terminal a competi-tive edge because they are faster than the older cranes and boast twin lifting capability, where two six metre containers are handled simultane-ously. This minimises the crane cycle time and increases the cycle frequency. Also contributing to improved productivity in July was Ship Work-ing Hours (SWH), which were maintained at an average of 41 moves on all vessels. Ship Working Hours is the number of containers moved by the cranes working on a vessel in one hour.

Better housekeepingTruck turnaround time was 26 minutes on average against a target of 30 minutes maximum, while stack occupancy was an average of 46% against a ceiling figure of 65%. Further plans to improve landside operations are advanced and even greater productivity is expected. Greater emphasis has been placed on housekeeping compliance, which ensures conducive landside operations.

The terminal’s ongoing refurbishment has extended the quay wall by 10 metres and increased the draft by 15.5 metres on the high productivity Berth 601 and the first 40m of Berth 602.

Equipped with four of the latest Super Post Panamax ship-to-shore cranes, the terminal is now able to service 305 metre vessels along Berth 601 and the first 40 metres of Berth 602. In addition, the increased berth and increased height capacity of the cranes allow for the efficient handling of Super Panamax vessels.

Transnet Port terminals, Ayanda Mantshongo, Cell: 083 301 2975, Email: [email protected]

Cape Town’s container terminal leads in productivity amongst the five container facilities operated by Transnet Port Terminals (TPT) in South Africa

RAILWAYS & PORTS

Truck turnaround time was 26 minutes on average against a target of 30 minutes maximum

Page 32: SCT: Aug10

�2 Supply Chain Today August 2010 Advanced Materials Today September 2007 39

Page 33: SCT: Aug10

Supply Chain Today August 2010 ��

L ongmeadow, the company’s blueprint centralised DC, currently services 284 stores. Building on this success, a sec-ond inland grocery distribution centre

is planned, as well as facilities in the Western Cape, KZN and Eastern Cape regions. In addi-tion, a perishables inland distribution centre is scheduled, the total investment coming in at a cost of over R2-billion.

Improving efficiencyPick n Pay CEO Nick Badminton says, “Pick n Pay’s move to centralised distribution is pivotal to the group-wide transformation programme which we launched three years ago as part of a fundamental review of the way we do business.

The purpose of this project has been to improve the efficiency of our core retail business, reduc-ing the cost of doing business, simplifying our organisational structures and enhancing the way we use information technology.

Raising the BarPick n Pay recently launched its R628-million distribution centre in Longmeadow, Gauteng, the efficiencies

and successes of which will enable the rapid roll-out of four distribution centres around the country within the next three years.

“Our decision to move to centralised distribution was motivated by changes in South Africa’s retail landscape which had seen us fall behind our com-petitors, who were investing significantly in their supply chains and in improved service to their stores through centralised distribution systems. Throughout the world, the most successful retail groups have unlocked massive value from their supply chains, and most of them have moved away from direct-to-store delivery distribution.

“We were also driven by the realisation that our current distribution operations are running over capacity and have become inefficient, resulting in stores being overstocked and in deterioration in customer service levels as a result.”

Late adoptionNick says that Pick n Pay was the last of the major supermarket groups to commit to a streamlined supply chain. “While this inevitably compromised our efficiency in the short term, it has enabled us to learn from the experience of others and to build a world class distribution centre, deploying the most up-to-date and state-of-the-art warehouse management software solutions.

Our decision to move to centralised distribution was motivated by changes in South Africa’s retail landscape

WAREHOUSING

Advanced Materials Today September 2007 39

Page 34: SCT: Aug10

�� Supply Chain Today August 2010

“It was no light decision, as it has required con-siderable capital investment and represents a significant change in the way we’ve done business for more than four decades, with the investment in Longmeadow to date totalling R628-million”.

BenefitsNick continues by saying that beyond technologi-cal advances and the logistical achievements, it is the benefit to its customers that remains top of mind.

“For the hundreds of thousands of shoppers who pass through our doors every day, the most sig-nificant benefits of centralised distribution have included the improved availability of stock, lower prices and a streamlined ordering process which has freed up our store staff to spend more of their time concentrating on shopper engagement. All the latest independent surveys confirm that over a basket of goods, Pick n Pay is quite clearly cheapest of all the major retail chains.”

Competitive advantageDirector of Supply Chain, Bronwen Rohland, says that the vision of Pick n Pay is to establish the supply chain as a key competence and competi-tive advantage, build capacity for centralisation of supply to support improved product availability, increase efficiency and the capability to deliver on the Group’s customer promise and reduce its environmental impact.

“In order to achieve this, a programme manage-ment structure has been put in place to manage the supply chain programme over the next five years to design a robust supply chain network that will handle future requirements across all Pick n Pay divisions, deliver an automated replenish-

ment and integrated planning environment, as well as standardise operating procedures across the company,” she says.

The retailer has completed its supply chain vision and strategy, with early success at the Longmeadow facility which has resulted in a streamlined opera-tion and significant improvements in efficiency. Product availability to stores has risen by 20% due to more efficient supply chain processes and robust business practices.

“We are constantly re-engineering our technology and business practices within the supply chain to ensure increased productivity and reduced costs. The implementation of SAP within Pick n Pay has allowed the development of an enhanced demand planning competency, taking into account a full range of information to accurately manage demand. This has improved the stock availability in the supply chain resulting in improved delivery to stores.”

In conjunction with the SAP implementation, SAP warehouse management is also used to manage the distribution facility, which has enabled the enhanced functionality resulting in efficient use of resources, such as mechanical equipment and people, accurate management and tracking of stock and visibility of the status of the operation.

“Pick n Pay is now able to hold stock centrally rather than at individual stores, helping to elimi-nate congestion at the back door of our stores, cut down on storage space at individual shops and ensure that we stock the right product at the right time and at the right price. We have estimated that storage and other non-trading space can take up 50% of a shop area, and rent must be paid for this area where no trade takes place,” she says.

Pick n Pay, Dani Isaacs Tel: (083) 308 6260, www.pick-npay.co.za

The most significant benefits of centralised distribution have included the improved availability of stock

WAREHOUSING

Page 35: SCT: Aug10

Supply Chain Today August 2010 ��

Market ForumA budding supply chain industryNeil Cormack, supply chain director of Softworx, an EOH company and Infor partner says that companies should consider focusing their strategy on building awareness from within an existing customer base.

He says that by establishing an IT platform within the supply chain management (SCM) solution, companies will discover potential areas for business productivity improvement.

In the industry, consumers and customers drive improve-ment because they want products and services faster, better and cheaper. Suppliers of these products and services should seek out new innovative ways to reduce their costs and improve service. By improving the per-formance and responsiveness of both their internal and external supply chains, a company’s growth can spark tremendous prospects.

Neil says that some companies have implemented an enterprise resource programme (ERP) to gain control, but are struggling to find a way to create long-term success from the system.

This is largely because nobody is capable, or has the re-sources to continuously improve on utilising new and better supply chain tools. ”Awareness should be created among the industrial community management and employees alike, to use a high-level IT platform for their SCM solutions management to continuously enhance their company’s abilities and production output to allow growth.”

The implementation of SCM point solutions, such as de-mand forecasting and bar-coded inventory management can significantly increase customer satisfaction

“To survive in a continuously growing business environ-ment, companies should consider that demand is driving the need for better production, inven-tory, distribution, and buying plans across the entire company spec-trum. By doing so, it will allow clear vision towards bet-ter predictions and shaping of what customers need and what they will want tomorrow,” says Neil.

Supply chain pro-ductivity can eas-ily be improved by simple deploy-ment of IT within the SCM environ-ment.

www.eoh.co.za, Tel: (011) 607 8100, Fax: (011) 616 9929

A concrete relationshipCargo Carriers has announced the recent signing of a contract with Lafarge Cement which allows the Fuel and Powders Business Unit of the company to expand its footprint in the industry by delivering dry bulk cement across the country.

Lafarge is one of the major cement companies in South-ern Africa with a production capacity of over 3 million tonnes per year.

The company’s Lichtenburg cement works is the largest and one of the most technically advanced cement produc-tion facilities in the country. Lafarge also operates cement clinker grinding stations at Randfontein, on the west side of Johannesburg and Richards Bay in KwaZulu-Natal.

The signing of the contract with Lafarge will see Cargo Carriers initially operating 30 dry bulk tankers, Mercedes Benz Actros 2644’s, with an opportunity to further expand this operation. Loading of the cement will take place at Lafarge’s facilities at Lichtenburg, Randfontein and Kaal-fontein for delivery countrywide.

Key factors in Cargo Carriers securing of the contract with Lafarge include the company’s continuous investment in new equipment which has provided it with greater capac-ity and excellent turnaround times, and its reputation for reliability and expertise in the industry.

“Cement is by far the fastest growing part of our bulk powders portfolio, and our experience and expertise within this industry, have positioned us perfectly to support the growth of Lafarge,” says Cargo Carriers’ Fuel and Powders Business Unit General Manager Nico Gerber.

Cargo Carriers, Tel: (011) 485 8700, www.cargocarriers.co.za

Cargo Carriers and Lafarge Cement join forces

Page 36: SCT: Aug10

�� Supply Chain Today August 2010

Market ForumSiemens has over 500 distribution centres globally and has optimised in the past its supply chain on a regional or national basis. An implementation process will enable Siemens to further optimise planning of the supply chain on a global scale, reducing complexity and cost and im-proving service.

Barloworld Supply Chain Software will implement its CAST software for Siemens Industry globally, a desktop based application to evaluate and identify different sup-ply chain strategies, leading to cost savings and service improvements.

Karl-Heinz Butz, Head of Network Development (Global Warehouse Network) explains, “The Siemens supply chain is multi-layered and complex. Following a discovery proj-ect last year, we took the decision to invest in a system which would help us to simplify our supply chain, carry out feasibility checks and model new parts of the network we were proposing.

“We believe that CAST will enable us to harmonise our processes by centralising the design of our supply chain and providing us with a roadmap to reduce cost and im-prove our service.”

Ewan French, Chief Operating Officer at Barloworld Supply Chain Software, adds, “The ability for Siemens to model its supply chain centrally will offer the opportunity to simplify what is an extremely complex network, and in doing so reduce cost. Businesses using CAST typically achieve a 10-15% saving on their supply chain costs through the application of network optimisation.”

Barloworld Logistics, Kate Stubbs, (011) 445 1600 http://www.bar-loworld-logistics.com

Getting the competitive edgeSKF has signed a five year contract with Metso Lindemann to operate its global wear and spare parts warehouse and distribution.

SKF will supply Metso Lindemann’s customers worldwide, on a daily basis, from a central distribution centre in Tongeren, Belgium. The implementation will require ap-proximately 1,500m² indoor storage capacity and another 3,000m² outside storage.

Services include inbound operations, warehousing, value added services, customer service activities and outbound operations for spare and wear parts to destinations world-wide. In this facility nearly 2 000 unique product refer-ences will be received from the Metso Lindemann factory in Duesseldorf as well as from external suppliers.

“With this agreement we help our customers optimise

Software to optimise supply chainAs part of its long term strategy to improve efficiencies in the supply chain, Siemens has selected Barloworld Sup-ply Chain Software for supply chain modelling, network design and optimisation.

R20 million orderABB has won a contract from Transnet, South Africa’s largest freight rail logistics company, for the supply and delivery of multiplexers required nationwide.

The multiplexers are supplied to graphically view data and bring all information to a central point. The equip-ment will allow Transnet to monitor track condition and rolling stock, thus ensuring the safety and reliability of supply.

“ABB’s products offer this key freight system of Transnet the opportunity to reliably and safely monitor rail opera-tions,” says Carlos Pone, CEO, ABB in South Africa.

Transnet Freight Rail (TFR) has a national Synchronous Digital Hierarchy backbone network that provides high speed connectivity at about 120 sites. However, a low capacity access network is used for narrow band services to signaling control centres, electrical sub-stations and radio high sites. These are all critical for train operations.

The existing access network of over 800 multiplex-ers has reached the end of its lifecycle and is due for replacement and expansion. ABB won the contract to provide this with their Fox product. This will also support TFR’s vision to have Ethernet everywhere for condition monitoring and proactive maintenance.

The multiplexers will reduce delays and stoppages on the freight lines, thus maintaining the supply of products to essential services, e.g. coal to the power plants and iron ore for exports. The network management system will enable controllers to make educated decisions at the Technical Command Centre thus saving them un-necessary costs.

Shivani Chetram, Tel: (011) 202 5090, Fax: (011) 579 8178, Email: [email protected]

Page 37: SCT: Aug10

Supply Chain Today August 2010 ��

Market Forumtheir integrated logistics solutions, giving them a competitive edge in costs, services and flexibility,” says Anders Forsberg, Director, SKF Logistics Services.

“For us the logistics partner SKF is an ideal complement to our logistics system. SKF offers us the opportunity to meet our customers’ demand quicker and more effectively. We will now be able to react directly upon the needs of our customers and to the changes of the market situation,” says Bernhard Kock, Vice President Services at Metso Lindemann, Duesseldorf.

SKF South Africa, Samantha Joubert, Tel: ( 011 821 3500, Fax: ( 0111 821 350, Email, [email protected] / www.skf.co.za

Best clearing agentDamco Logistics South Africa was presented with the Best Clearing Agent of the Year 2010 Award at the first annual

International Produce Limited Logistics Conference in Leeds in the United Kingdom.

International Produce Limited is a wholly owned en-tity of ASDA Wal-Mart, sourcing from quality growers worldwide to provide the best value fresh produce. IPL manages a number of ‘categories’ on behalf of ASDA Wal-Mart, including top fruit, melons, stone fruit, grapes, citrus, salads, bananas and ‘exotics’.

“Damco Logistics South Africa was chosen as the winner of this Award for its proactive approach to managing the IPL business. Damco not only displayed a really

keen approach to communication back to the UK Head Office, but also engaged in innovation at a strategic level. IPL felt Damco’s recent investment in managers with Reefer specialist knowledge showed its commitment to the category and to IP,” says Jason Kelly, Operation Director for International Produce Limited.

The model that Damco has helped IPL create in South Africa, is now being extended through ‘ex works’ purchas-ing to other sourcing areas around the world. For the first time this season product ex Chile, the second largest deep see origin for IPL, is moving on the ex works basis and managed by Damco Chile.

Damco Logistics South Africa, Nadia Hewett, Email: [email protected], (021) 408 6559, Cell: 083 782 4252

James Hammond accepting the Award on behalf of Damco Logistics South Africa

Maximum efficiencyParmalat South Africa has announced its intention to outsource the dairy company’s regional distribution planning functions to VSc Solutions, a locally-based supply chain technology and consulting company. The continuous world class operating success achieved at Parmalat’s Gauteng Distribution Centre has paved the way for further development using similar solutions in other regions.

VSc Solutions has re-engineered the planning function by utilising technology and skills in order to create a competitive advantage for Parmalat in the distribu-tion environment.

The result is an integrated, innovative solution that has successfully reduced costs and improved ser-vice levels, creating added value for customers and shareholders.

Page 38: SCT: Aug10

�� Supply Chain Today August 2010

“The integrated solution has provided a total transport management solution that has enabled us to realise the full benefit of our fleet and achieve improved customer service levels. Increased visibility and optimal route plan-ning has allowed Parmalat to reduce our overall delivery costs,” says Willem Schoeman, National Distribution Manager, Parmalat.

Parmalat, Tel: (021) 809 1400, www.parmalat.co.za

Market Forum

IndextoAdvertisers

Apex 10

Bartrans 6

Clarklift Outside Back Cover

Criterion Equipment Outside Front Cover

Dexion 26

Flexlink 25

JHR Equipment Inside Front Cover

Mercedes 18

Mitsubishi Fuso 8

Pioneer Plastics 30

Psion Teklogix 12

SAID 32

Sapics 24

Toyota Inside Back Cover

Universal 4

Please fax us if you wish to subscribe to “Supply Chain Today” at R375,00 (incl postage and VAT) per year; R875,00 per year for Af-rica/Overseas. We will post you an invoice on receipt of your fax.

PROMECH PUBLISHING Fax No: (011) 781-1403

From:.........................................................................................

(insert your name)

Title: ..........................................................................................

Company: .................................................................................

Address: ..................................................................................

....................................................................................................

......................................................................Code: ..................

Telephone: ( ) ....................................................................

Fax: ( ) .................................................................................

Email:........................................................................................

Subscription

A real feather in the capBarloworld Logistics has announced the results achieved in the first year of its distribution optimisation contract with Navistar International, a US-based manufacturer and distributor of commercial vehicles, engines, parts and services.

Barloworld Logistics handles the outbound distribution and management of Navistar ’s Southern African Parts Distribution Centre (PDC). This is the first time that Navistar has outsourced any of its distribution opera-tions globally.

After forming a wholly-owned South African subsidiary, Navistar appointed a number of new dealerships, and, at the end of 2008, putting major investment into a new (PDC) for the entire Southern African region.

Barloworld Logistics was tasked, from early 2009 onwards, with managing both the PDC and outbound distribution on behalf of Navistar, in order to meet their major business objectives of maximising vehicle uptime for their customers, and growing Navistar’s market share in sub-Saharan Africa, through capitalising on the exist-ing network of dealerships in Southern Africa.

Says General Manager, Supply Chain Management at Barloworld Logistics, Jacques Kruger, “The real feather in the cap for Barloworld Logistics is the trust Navistar has shown in us to make our arrangement the first outsourcing of any of its logistics operations at any of its PDCs globally.”

Barloworld Logistics manages the entire PDC facility as well as the outbound distribution of all parts on behalf of Navistar. Containers received are unpacked, sorted and distributed to 15 dealerships around Southern Africa.

Jacques continues, “We currently occupy 4 200m² floor space with 4 000 line items valued at around R15 million. There is a 0.15% variance in stock availability with a 99.85% stock accuracy and sales continue to improve. Since the go-live of the project on 2 April 2009, we have had no glitches and have achieved all set targets and time lines.”

Barloworld Logistics, Kate Stubbs, 011 445 1600 http://www.barloworld-logistics.com

Page 39: SCT: Aug10

Supply Chain Today August 2010 ��

Page 40: SCT: Aug10

�0 Supply Chain Today August 2010

INDUSTRIAL EQUIPMENT

GAUTENG3 Fabriek Street

Isando, JohannesburgTel: +27 (0)11 922 0000Fax: +27 (0)11 922 0130

KWAZULU-NATAL80 Otto Volek Road, New Germany

P O Box 719, Pinetown 3600Tel: +27 (0)31 716 6300Fax: +27 (0)31 702 4208

WESTERN CAPE54A Junction Street, TygerbergBusiness Park, Parow Industria

Tel: +27 (0)21 959 7580Fax: +27 (0)21 959 7594

EASTERN CAPE134 Paterson Road

North End, Port ElizabethTel: +27 (0)41 484 7722Fax: +27 (0)41 484 7889

CLARKLIFT SOUTH AFRICA (PTY) LTD

Clarklift is a division of Equstra Industrial Equipment, a subsidiary of the EqstraGroup Limited, a major company listed on the Johannesburg Stock Exchange.Clarklift is the sole distribors of Clark Forklifts and JCB Teletrucks inSouth Africa.

Sales, Distribution and Services is carried out through 4 branches -

Isando, Durban, Port Elizabeth and Cape Town, as well as 7dealerships. Head Office facility is situated in Isando near Johannesburg.

CLARK - THE FORKLIFT

In the year 1917 Clark invented the Forklift truck. For this reason - CLARK isthe most experienced manufacturer of forklifts in the world.

Today Clark operates one of the most up-to-date production plants for forkliftsworldwide,consisting of 20 000 square meters of covered production area. Theyproduce electric counter balance trucks ranging from 1.5 ton uo to 3.0 ton capacity.Gas (LPG) counter balance trucks ranging from 1.8 ton up tp 8.0 ton capacity.All the trucks are two-wheel-drive models.

JCB - TELETRUK

The world’s most versatile small counter balance lift truck. First take the smallfootprint of an industrial counter balance lift truck. Then add the telescopic boom ofa telescopic handler. Design-in a fully enclosed hydrostatic drive-system.Then finish off with a hydraulic quick-disconnect carriage for forks and shovel.That’s what JCB has done to bring you the JCB Teletruk Range.

This unquie concept of a telescopic boom on an industrial counterbalance lifttruckwas first introduced in 1977. Four-wheel-drive was another first from JCB, introducedin 2001. Since then thousands of these versatile machines have been sold around theworld. The range covers the most popular 2,5 ton to 3,5 ton capacity brands, Diesel-powered two-wheel of four-wheel-drive, and two-wheel-drive Gas (LPG) models.The JCB Teletruk-its not just another lift truck!