SCT: May10

Supply Chain Today May 2010 1

2 Supply Chain Today May 2010

C

M

Y

CM

MY

CY

CMY

K

ZRBADHD00101R_DHL_All Over_sth afr_Supply change tdy_297x210HR.pdf 1 4/10/10 12:44 AM

Supply Chain Today May 2010 �

May 2010

ContentsCover Story5 A Force to be Reckond With

Racking & Shelving7 Trial Retirement9 Racking on a Roll

Manufacturing11 Look Ma, No Hands

Cold Storage13 World-class Facility

Sapics15 Benefits are Two-fold

Market Forum — Unit16 Market Forum

Trucking21 Hooking the Truckers23 Class-leading Heavy Truck Range Launced

WMS & Inventory Control25 The Evolution of WMS29 The Real Brain

Featured on the cover

S&N Labels/BartransTel: (011) 552-8245Fax: (011) 397-8526Email. [email protected] Web: www.snlabels.co.zawww.bartrans.co.za

Procurement31 Head-on

CIPS33 Not a Backroom Activity

Market Forum — Supply34 Market Forum

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

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 Sanette Lehanie

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 reproduc-tion, the editor, authors, publishers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclu-sion 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.

C

M

Y

CM

MY

CY

CMY

K

ZRBADHD00101R_DHL_All Over_sth afr_Supply change tdy_297x210HR.pdf 1 4/10/10 12:44 AM

� Supply Chain Today May 2010

Offices in Johannesburg, Durban, Cape Town & Port ElizabethTel: 0861 GOSCOR (467 267)

[email protected] • www.goscor.co.zaA proud member of the Goscor Croup of Companies

LIFT TRUCKCOMPANY

Goscor Lift Truck Company has been supplying the South African market with quality materials handling equipment for 26 years. Our goal is to ensure efficiency, reliability with low down time and low maintenance!

LIFETIME

Oil Cooled Disc BrakesPowerful • Efficient • Reliable

Quality Through Reliable Innovation

Oil-CooledDisc BrakesMaintenance Free, Lifetime warranty from Korea.


W hen Supply Chain Today meets Di-rectors, Luke Dunstan and Simon Grisdale, to chat about what the amalgamation will bring to the

industry, Luke is quick to inform us of a couple of new products in the pipeline.

Dolphins at workTwo of these come in the form of the Dolphin 6500 and Dolphin 9700 barcode scanners from Honeywell. “We’re excited about them because they’re as rugged, if not more so, than similar models on the market, but they’re substantially more cost effective,” says Luke.

With the 6500 aimed at the entry-level market such as light warehousing, and the 9700 offering more sophisticated functionality, the scanners encompass most aspects of the warehousing and supply chain sector. The Dolphin 6500 is

suitable for a wide variety of applications while still offering rapid return on investment. Features include a tough, water- and impact- resistant casing, ease of use and real-time wireless com-munication.

The Dolphin 9700 offers similar rugged reliability, with additional functions such as business com-puting, voice calls, image and video recording, GPS tracking and vehicle navigation. Not only is it capable of scanning tasks, but it also connects companies to clients and workers, simplifying workflow and reducing expenses.

Specialised productsLuke tells us that specialist markets are also catered for. “The Dolphin range is available in hygienic medical housing units, which is unique. They can go from the warehouse to the hospital without having to change either the scanner or the software.

“We also have ATEX-approved, intrinsically-safe equipment which operates without producing sparks. This makes it suitable for use in the petroleum and mining industry.

We have various software solution partners, giv-ing our hardware the flexibility to fit into most processes for supply chain as well as verticals such as agriculture, pharmaceuticals and FMCG. All of these products work hand-in-hand with the equipment and services offered by S&N Labels,

COVER STORY

A Force to be Reckoned WithThe marriage of two strong families invariably forges a formi-dable alliance and this certainly appears to be the case with the recent partnership between S&N Labels and Bartrans.

Luke Dunstan and Simon Grisdale

Dolphin 6500

Offices in Johannesburg, Durban, Cape Town & Port ElizabethTel: 0861 GOSCOR (467 267)

[email protected] • www.goscor.co.zaA proud member of the Goscor Croup of Companies

LIFT TRUCKCOMPANY

Goscor Lift Truck Company has been supplying the South African market with quality materials handling equipment for 26 years. Our goal is to ensure efficiency, reliability with low down time and low maintenance!

LIFETIME

Oil Cooled Disc BrakesPowerful • Efficient • Reliable

Quality Through Reliable Innovation

Oil-CooledDisc BrakesMaintenance Free, Lifetime warranty from Korea.


which has opened up a number of doors for us,” he explains.

Combined forces“Essentially, this is what our relationship brings to the mix,” adds Simon. “By combining our of-fering, we can provide a turnkey solution for any supply chain application.”

COVER STORY

Dolphin 9700

Between the two companies, products and services include an extensive range of printers and scan-ners, along with associated consumables such as ribbons and labels. “Bartrans is a Business Solutions Partner of Honeywell, and a Premier Partner of Zebra Technologies,” Simon continues. “We’re also distributors of Toshiba Tec and Seagull

Scientific.”

Another advantage of the partnership is the expansion of both companies’ national footprint. “We can provide nationwide support and expert back-up of the SLAs we sell, along with collection and delivery of terminals,” adjoins Luke.

Though society may have reservations about marriages of convenience, in this instance it’s a relationship that clearly has long-term benefits. This team looks set to become a force to be reckoned with.

Luke Dunstan, Bartrans, Tel: (011) 552-8245, Fax: (011) 397-8526, Email. [email protected], Website: www.snlabels.co.za, www.bartrans.co.za


I t’s hard to imagine that Tony will ever slow down, to be frank. He’s been in racking and shelving for

more years than many of his colleagues have been alive, and he knows the business better than almost anyone. Not one to settle for simply having a ‘job’, Tony has driven himself as relentlessly as he’s driven his staff.

Tough guy“I’ve been known as a tough person,” he admits. “But I like to believe that I’ve been fair. The client has always been my focus and my method of delivery was to check every detail to give absolute accuracy which is crucial in this busi-ness. This often put pressure on the people around me, but I was lucky enough to have a team that shared my pas-sion. If we made a promise, we kept it.”

In spite of his ‘tough guy’ status, Tony is surprisingly affectionate when he talks about his staff. “Although the client always came first, the only way to do this was through the development of the people I worked with. With the right knowledge and the ability, it was easier for them to feel driven to be part of the best racking and shelv-ing company in the country,” he smiles.

Understanding of hard-shipTony’s unflagging work ethic grew out of an intimate

understanding of hardship. Having grown up during tough times in Northern Italy, he knows first-hand that success is about determination and hard work.

“Back then, we had nothing,” he says. “I put myself through technical college so I’d have the knowledge to progress further and scraped up enough money for a bicycle so I could get around. Even then I understood that knowledge is power.”

Into rackingUpon reaching South African soil, he first worked as a toolmaker and eventually progressed to project engineer. He joined Symo (then CF In-dustries) as a project engineer, assisting in the manufacturing and refrigeration section. During this time, he drew the attention of management, who recognised his potential. When the company later established different business units and the racking division came into being, he was assigned to run it.

“I’m passionate about quality,” he continues. “Actually, I’m passionate about life too. I believe you should be totally committed to everything you do.” This commitment paid off for Tony’s industry of choice. After his appointment at CF Industries, he was largely instrumental for setting the standards for racking in South Africa. “When I started, there were no codes or regulations, just vague mention of these, so I went abroad and brought back the necessary standards that I could apply here.

Graded-material“At that point we were the only suppliers using graded material from Mittal. Design was also a crucial factor. A well-designed rack should last a minimum of 20 years, maintenance-free apart from the occasional coat of paint and repairs if damaged by materials handling equipment. All my products complied with the standards that were set and we compelled the industry to do

Trial Retirement

When “Supply Chain Today” recently meets Tony Mongiat, of Symo Cor-poration, to find out how he’s enjoying his first weeks of retirement, his

reaction is jovial. “The phone hasn’t stopped ringing yet,” he laughs. “Nothing has slowed down. I’ll tell you how retirement feels when my re-

tirement actually begins.”

RACKING & SHELVING

Tony Mongiat

He knows first-hand that success is about determination and hard work


the same because they had to offer a comparable product.

I also had an excellent on-time delivery rate, which is probably a little harder to match, because I managed the whole process from customer order through to delivery meticulously. This principle allowed me to compete successfully in Africa, the United Kingdom, Denmark, Australia and the Arab Emirates.

Having said this, he adds: “I believe in people. Everyone has a talent. As a manager, you have to find a way to bring this out. Different systems suit different people. To be a successful leader you have to be creative, work hard and lead by example. People don’t mind working hard. Once they see your commitment, they’ll commit too. You just have to get in the trenches with them.

No compromise“My main aim was always ‘Quality, Quantity and Low-Cost’. I achieved this by micro-managing operations. Some don’t agree with this principle, but it worked for me. I had a team of a thousand and I knew what everyone was doing at any given time.

“It was extremely important that the customer received his material at the promised delivery date, no compromise.

Making changesWith so many years in the business it’s inevitable that Tony would have been on top of changes.

RACKING & SHELVING

“Everything has changed,” he chuckles. “South Africa has changed; the industry has changed; labour has changed! We’re finally understanding the need to be more proactive towards the cli-ent. Be honest with them. If there’s a problem, let them know.”

When asked if he has any amusing anecdotes to share, Tony becomes stern. “I took my job seri-ously. Although, I’ll admit that not every project runs smoothly. I remember when working on the Shoprite Centurion contract. We were given a week to deliver and then had trouble procuring the material. I sent up more than one prayer. The next day the roof fell in, giving us our extension! We were still the only contractor to deliver on time however. But in recent years most projects ran like a well-oiled machine. We had all the systems in place and everyone knew their job. Symo Storage had a soul and this translated into customer satisfaction.”

Back on the scene“So what now?” we ask, waiting to hear plans of cruises to the Bahamas. “I think I’ll spend four months doing nothing,” Tony says with a grin. “Then I’ll decide if I’ll retire. Consider this a ‘trial retirement’.” We’re sure it won’t be long before he’s back on the scene in some way.

Symo, Tel: (011) 437-7700, Fax: (011) 437-7799 E-mail: [email protected]

You just have to get in the trenches with them


Game pallet

RACKING & SHELVING

The racking business is by no means a static industry. When Lindsay Weyer, sales and marketing manager at Cape Gate, chats to “Supply Chain Today” he tells us that the

developments in the retail sector have seen a growing move toward containerisation.

T he past couple of years have seen all the major retailers either extending or build-ing new DCs, and the trend continues,” he says. “Latest developments include

Shoprite extending their Pretoria facility from about 35 000m² to 150 000m², while Mass Stores is putting up 75 000m² in Gosforth.

Get rolling“From a materials handling perspective, we’re noticing that retailers are frequently opting for equipment such as rolltainers. These can be filled up just like a regular container, but have the advantage of being more mobile as well as being collapsible. They fold down when empty and can nest, much like pallets, making it easy to transport them efficiently on return journeys.

“Just as the shipping industry has regulated con-tainers which have become a global standard, so

retailers are applying the same basic principles to their containers to maximise the space available in transport vehicles.

“We’ve focused a lot of attention in this area, custom-designing rolltainers for various clients. For example, we prototyped a unit for Dischem’s new DC in Jo’burg that is currently in its trial phase. It needed to be more robust with a higher degree of security, as well as being able to take extra weight on top.”

Mix ‘n MatchIn many instances, however, the company will supply a variety of storage products which all work together to provide a complete solution. “Retailers are opting to mix and match different mobile materials handling options to suit their specific needs.

“At the Mass Stores DC in Gosforth, we’re sup-plying three types of container. In addition to fully-enclosed security rolltainers for high value goods, they also require two-sided rolltainers, which will be packed with bowed goods and then shrinkwrapped. We’re also supplying furniture trolleys for bulky ‘knock-down’ furniture.”

Easy pickingAccording to Lindsay, apart from mobility, the rolltainers also allow ease of picking, with con-tainers being pre-packed according to upcoming orders. “We’ve found that companies like Makro have almost been acting as distribution centres for other retailers, such as the forecourts at garages.

“When Engen’s One-Stops costed the process of setting up their own DC, they decided that it would be more cost-effective to source from Makro, who stocks products specifically for them. These items are picked as needed, containerised and shipped where required.

Access is an issue“Other companies like MacDonalds have pre-packed condiments supplied by independent contractors, stored in containers instead of boxes on shelves since it’s a more controlled way of picking an order.”

In spite of these obvious benefits, the trend has met with some levels of resistance. “In Europe, there are more rolltainers than trolleys because they offer secure, cost-effective distribution,” Lindsay advises. “South Africa hasn’t picked up the trend as quickly because access is an issue.

“It’s all very well having a huge DC with masses of product going out, but if you can’t get the containers into the outlets you have a problem.

Racking on a Roll

In spite of these obvious benefits, the trend has met with some levels of resistance


“For this to be possible, every store would need to have exactly the same configuration so that containers could be prepared in advance.” Some-thing of a tall order perhaps, however Lindsay says that other retailers are even looking at stor-ing products according to LSM, with different branches aimed at specific markets.

On the rackHe adds that pallet racks are also gathering fa-vour in local warehouses. “These are containers used to store tricky products such as brooms or mops, on racks without being damaged, while still allowing racks to be stacked on top of each other.

“Cape Gate has always been involved in the trolley section of the retail sector. We’ve taken this further, going from the front of the retailer with our trolleys, in the back of store with our rolltainers and now we’re moving even deeper with our racking options,” he concludes.

Lindsay Weyer, Cape Gate, Tel. 021 937 7123, Fax. 021 937 7177, www.cape-gate.co.za

Years ago, we were advised that we’d need to get every store in the country ‘wheel-friendly’, which would take huge expense. Most of the big retailers are nearly there, but it’s certainly slowed

things down.”

DC to aisleAs far as distribution goes, one of the main challenges is to get goods from the DC into the aisle; it’s always been a lengthy process. “Some retail-ers have the ultimate goal of having goods delivered from warehouse to shop shelf with-out having to be stored in the warehouse in back-of-store,” he continues.

“Clicks tried it, but had to overcome the problem of hav-ing such a vast range that it was impossible to predict what products would be needed to be packed. Ideally, the store would need containers to be packed in precisely the order in which they would be unpacked onto shelves. Cellphone lockable cage

RACKING & SHELVING

If you can’t get the containers into the outlets you have a problem

FOR LONGER SHIFTS IN EXTREME CONDITIONS.

+27 (0)11 624 8000 +27 (0)31 700 9363 www.kemtek.co.za

Blac

k Kh

aki 0

8128

4R

Datalogic ScannersPowerscan 8300 Laser scanner barcode reader


C ompared with the rapid evolution of automated handling systems and robots, AGVs seem to have lagged behind a bit in some countries, but this does not mean

the development of technology has stagnated altogether. While conveyors and lift trucks are the most common handling solutions in warehousing as well as in manufacturing plants, automatic guided vehicles are increasingly becoming a viable alternative in both of these situations.

In South Africa there have been a couple of AGV installations in both the manufacturing and ware-housing environments. To learn more about these and the latest technology available, “Supply Chain Today” meets with Willem Prinsloo of Varic.

“Apart from our original installation at SA Mint’s plant, we also installed AGVs at an engine as-sembly plant and some for the handling of large rolls of paper,” he says. “The installation at the SA Mint, in terms of security, is the ultimate solution because it eliminates human presence from high security areas.

Laser technology“Original technology ‘steered’ AGVs via circuitry built into the floors, but today we use laser technology. By simply working out routes on a CAD-type programme and feeding this into the AGV’s system, the vehicle’s routes are now easily managed,” explains Willem. “Depending on the type of environment and how many AGVs are operating in it, we fit certain levels of sensors on each one in order to prevent collisions with people or other moving objects that may not be keyed into the system.

“If the AGV senses something in the distance, it will slow down but not necessarily stop. As it gets nearer the ‘unknown’ object, the second level of sensing will slow the AGV down even more and a third level of sensing will bring it to a stop if the object does not move out the way

at all,” Willem elaborates.

The vehicle communicates with the main con-trolling PLC system on a continuous basis while continuously reporting back to the system on, for example, its battery condition.

Artificial intelligence“In plain language, an AGV will, for instance, get to a station and tell the system: I am AGV 3, I have completed my delivery to dispatch, my bat-tery is still fine, standing by. The AGV will then wait there until the system tasks it for the next job,” explains Willem.

“At the point when it reports that its battery is low, the system will instruct the AGV to go to the battery bay for either a recharge or a freshly-charged battery replacement. Today we even have technology which allows the battery to be recharged without attaching

MANUFACTURING

Look Ma, No HandsIn an automated manufacturing environment, the AGV (auto-matic guided vehicle) usually completes the loop in order to make a particular production line fully automated. The AGV does not become hungry, or tired, or prone to absenteeism.

Willem Prinsloo of Varic

Picking up loads at the production line

Ultimate solution because it eliminates human presence from high security areas


SGV Tugger with Optional man Aboard platform

while the AGV is parked on that spot.”

Four basic typesWhen it comes to traditional AGVs there are four basic types of vehicles most commonly used. “Tow vehicles, also known as tuggers, are simple and inexpensive and they pull rail trailers or carts. By adding multiple trailers you can move more loads at one time than with a single lift truck. Tow vehicles are used where you have a set path with distinct pick up and deposit locations. They follow a route and stop at stations for loading or unloading,” explains Willem.

The second type are unit load vehicles that carry pallets, slip-sheet, cartons or sub-assemblies on their decks. These decks may be raised or lowered with lifts, or have a conveyor to interface with other equipment. Alternatively, the vehicle may have multiple compartments to carry two, three or four pallets at one time.

The third type is a forklift-type vehicle which operates just like a lift truck, but without a driver. Finally there are custom vehicles which can be engineered to handle very large loads, like a twenty ton steel roll, or unusual loads, like the whole body of a school bus.

Conclusion“South African industry has still not fully embraced AGV technology, yet there are many instances where they can benefit from it” says Willem in conclusion. “In any manufacturing situation where the driver of a vehicle is endangered, such as toxic chemical processes or high temperatures, an AGV system can be engineered to fulfil the task much more effectively. The technology has matured and it’s available as a cost effective solution to complete the automated production line of today.”

Varic, Willem Prinsloo, Tel: (011) 918-4590, Email: [email protected]

SGV2000 Side loaders have hand-held PCs which are used to monitor and adjust the SGV system by floor personnel

a n y cables. The AGV will

simply park on a spot where high induc-tion coils are embedded in the floor. Through this induction process, the battery is charged

Simply park on a spot where high induction coils are embedded in the floor

MANUFACTURING

TO LET20 000 square meters @R18 per meter

Crane rail siding offices, 5000 KVA, immediate occupation

Location: Brits

Contact Paul Steyn:

© C

rea

me

r M

ed

ia 1

20

21

0C

G

Supply Chain Today May 2010 1�

COLD STORAGE

C onstruction of the new, multimillion rand facility commenced in November 2007 and was completed in stages. Final commissioning and testing took

place last year.

Outdated cold storesAddressing customers, official stakeholders and the media at the facility’s unveiling, Nosipho Damasane, Transnet Port Terminals Chief Operating Officer, said the multi-dimensional repository was Transnet’s solution to the outdated cold stores in the fruit export logistics chain, many of which are being withdrawn from service.

“A world class fruit exporting country such as South Africa requires the services of a world class cold storage resource. The Cape Town MPT Cold Store makes this a reality with its advanced technology and equipment,” she said.

Ideal positionShe added that the 24-hour facility is situated in the most convenient place in the logistics chain – directly on the quayside – and is therefore in an ideal position to reduce the cost of doing business by shortening the export route and eliminating additional handling.

The cold store is located at the Port of Cape Town’s E–Berth where the draft of approximately 10.4 metres caters for most conventional vessels in operation today.

The operation is under the management of Opera-tions Manager, Beyers Pape, who has intimate knowledge of cold store management and opera-tions, having worked in the fruit export industry for 20 years.

While the high-tech facility was initially intro-duced as a fruit only storage facility and initially handled citrus, grapes and small consignments of

World-class FacilityOne of the country’s most technologically advanced cold stor-age facilities, built by Transnet at a cost of R45 million, has

been officially launched today at the Cape Town Multipurpose Terminal (MPT), with a firm commitment from port operator

Transnet Port Terminals to add value to fresh produce export-ers throughout the Western Cape and beyond.

Solution to the outdated cold stores in the fruit export logistics chain

1� Supply Chain Today May 2010

avocadoes, it has since broadened its services to offer storage facilities for all perishable goods.

24-hour monitoringHannes Human, Business Unit Executive at Cape Town MPT, says the cold store features 24-hour monitoring of the entire cold system and tracking

It has since broadened its services to offer storage facilities for all perishable goods

of all cargo under the protection of the Paltrack tracking system throughout the export journey.

Continuous quality inspections are carried out by the Perishable Product Export Control Board in order to maintain high quality service standards and compliance with world standards.

The new cold store offers product-specific pre-cooling of conventional palletised cargo to required protocols, containerisation of cargo for the export market and shipping of cargo directly from the cold store into vessels.

Specialised pre-cooling servicesIt also provides specialised pre-cooling services for fruit sterilisation, which is a requirement by certain world markets such as the Far East and USA.

The cold store’s port-to-road linkages include five loading bays to ensure quick loading and offloading of cargo, with a turnaround cycle of ten containers per hour. The facility’s courtyard, which is situated adjacent to the cold store, is canopied to ensure safe loading and unloading of cargo during inclement weather.

Port-to-rail connectivity includes a rail siding adjacent to the cold store, where palletised fruit is then transferred from or onto internal road transport vehicles for fast delivery in or out of the cold store.

The cold store has three floors, each with cold storage capabilities. The ground floor, which can cater for the handling of 2 229 pallets is for storage only, the 1st floor is for pre-cool-ing and has a 740 pallet capacity, while the second floor, which can handle 486 pallets, is for pre-cooling and storage.

Lunga Ngcobo, Transnet Port Terminals, Email: [email protected], Hannes Human, Email: [email protected]

COLD STORAGE


SAPICS

E ight eager delegates were identified by Colgate Palmolive and began the pro-gramme under the guidance of lecturer, Greta McNiven. The Sapics course ma-

terial is designed to give the learner a thorough introduction to operations management, cover-ing topics such as demand planning, inventory management, product lifecycles, manufacturing control and production planning, she explains, adding that the Colgate team was a pleasure to teach.

“They showed enormous commitment to their studies and we had very thought-provoking discussions in the class,” says Greta.

She really commends progressive companies like Colgate Palmolive who invest in the education of their employees. “The benefits are certainly two-fold,” she stresses. “The employee reaps the rewards of skills upliftment, while the employer gains a more productive, motivated workforce.”

Please note: The 32nd Annual Sapics Conference and Exhibition will be held at Sun City from 25 to 27 July 2010 (inclusive).

Jenny Froome, Sapics, Tel: (011) 805-5677, Email: [email protected], www.Sapics.org.za

Colgate Palmolive’s team with lecturer Greta McNiven (third from left)

Benefits are Two-fold

BizzPro was recently selected by Colgate Palmolive to run a pilot skills development programme for its inven-tory controllers and production planners. And, reflecting the value and relevance of the Sapics supply chain education programmes, the association’s

PPIM (Principles of Production and Inven-tory Management) was chosen as the pre-ferred course to provide this team with the

requisite skills and knowledge.


Market Forum

Via DurbanIt was a case of “local is lekker” when Transnet Port Terminals chose local heavy machinery manufac-turer, Desmond Equipment SA, to supply a R1.1 million front end loader for the Agriport terminal in Durban.

The Dezzi 2300 articulated front end loader with 5m³ bucket was delivered to the terminal recently, and will be used at Agriport’s new 80 000 tonne bulk warehouse. The new warehouse will be used for the storage of soya meal, most of which enters the country via Durban.

Ernest Bell, Commercial Specialist in TPT’s Pro-curement Department, says the supplier ’s delivery within tight deadlines bore testament to the capacity of local manufacturers.

Based in Port Shepstone, Desmond Equipment SA has been in operation for over 30 years, manu-facturing and supplying a variety of earthmoving equipment to the Southern African construction, mining, quarrying, forestry, sugar, industrial and harbour bulk handling markets.

Robert Teale, Project Manager at TPT, says the establishment of the bulk warehouse forms part of several investments aimed at realising capacity and generating new business at the Agriport terminal. These include the establishment of bio-directional conveyor routes enabling TPT to load and offload at the same berth, extension of the rail structure, and investment in a new pneumatic ship unloader to offload wheat.

Lunga Ngcobo, GM: Corporate Communications, Transnet Port Terminals, Email : [email protected]

Rapid rise The rugged and compact iKôn handheld computer, delivers increased pro-ductivity across diverse industry applications, according to newly ap-pointed Psion Teklogix Country Manager, Mi-chelle Hollis.

Says Michelle, “The iKôn has been welcomed by the South African lo-gistics industry and we have secured a loyal, still growing, high profile customer portfolio for this ingenious device”.

Industry world wide had to brave a negative economic climate and in order to survive had to investigate cost containing measures. “While spending had to be curtailed, industry also

had to consider that outdated or wrong technology could cause inaccurate picking, late, wrong and/or non-deliver-ies, spoilt products, incomplete paper trails, overtime, in-voicing and payment delays,” comments Michelle and adds that these unneces-sary errors escalate production costs at a time when cost containment should be the prime consid-eration.

Whether accurately scanning barcodes with the integrated imager or scanner, or using the camera to take a colour picture, the Psion Teklogix iKôn is the right tool for the process offering numerous features and ben-efits.

The iKôn effortlessly simplifies anytime, anywhere, wireless

voice and data com-

Pictured onboard the new Dezzi 2300 front end loader: (Left to right): Sipho Dube, Fleet Manager of TPT’s Agriport; Harry Dickinson, Project Manager for TPT; Ron Stroebel of Desmond Equipment SA; Robert Teale of TPT, Ernest Bell of TPT and Desmond Gutzeit of Desmond Equipment SA.


Market Forummunications, GPS positioning, with simultaneous WiFi, Cellular (GSM/GPRS/UMTS) and Bluetooth connectivity options. The device enables real-time information man-agement, improved efficiencies, increased asset visibility across operations.

When compared with a number of other devices with ¼ VGA display, the iKôn, with a 3.7 inch VGA display, is the ultimate hand held computing device for complex ap-plications with sophisticated graphics. Maximum, all-day productivity for mobile workers is guaranteed as iKôn™ features the highest battery capacity for hand held com-puting devices in the market.

Psion Teklogixs mobile devices perform all functions necessary for 3PL, proof of delivery, electronic signature, photographs, fingerprint scanning, invoice tracking, com-patibility with GPS and GPRS, Bluetooth capability.

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

Clean airBulk Connections, part of the Bidvest group, is renting 6 Nissan 2.5 ton diesel forklift trucks from McCarthy Heavy Equipment’s Materials Handling division.

Bulk Connections operates a wide range of specialist mate-rial handling facilities systems, and has been in business since the early 1900’s. Over the years the company’s fleet has been maintained, upgraded and state-of-the-art equipment added. “Dependability and reliability are proving to be the terminal’s critical success factors, with fleet availability exceeding 98% and this is reflected in the choice of equipment used to facilitate this,” Hannes Engelbrecht, operations manager at Bulk Connections, based at the Port of Durban, says.

“We were struggling with the forklift trucks previously be-ing used and needed to find a supplier who could respond to our specific needs. McCarthy stepped up to the plate and we are more than satisfied with the performance of the Nissan forklifts and the service we have received from the KZN branch.”

Hannes explains that the Nissan forklifts are being used to lift mini 1 ton bags containing concentrates, at a density of approximately 2.5, from road and rail trucks and move them to the storage shed where they are stockpiled.

The McCarthy Heavy Equipment’s Materials Handling division in KZN, fitted a twin precleaner to the forklifts at McCarthy Heavy Equipment’s Boksburg facilities to address the dust generated during offloading. It effectively channels air through the precleaner at the top of the overhead guard and through two air filters whose inlet is situated above the level of the dust created, notably when the bags are cut and emptied onto the bulk stockpiles. This cleaner air means that the machines run for longer between filter changes reducing downtime, increasing productivity and extending the life of the machines.

Graham Callanan, Mccarthy Heavy Equipment Materials Handling Division, Tel: (011) 306-7300, Website: www.mche.co.za

The Nissan 2.5 ton diesel forklifts lined up for handover to Bulk Connections

Maintaining the chainSignificant energy savings can be realised by refrigerated delivery truck operators through the installation of Apex General Purpose Strip Curtains across truck doorways. This is achieved by maintaining a thermal seal across the doorway even when it is opened with knock on effects being a load reduction on the truck’s compressors and the elimination of coil freeze-up.

“Refrigerated transportation plays a vital role in keeping


Market Forum

the cold chain intact, but it is in transit that spoilage frequently occurs. The most common problem is the rise in temperature every time goods are off-loaded, as warm air enters and there is a dramatic temperature increase,” he says.

This temperature rise can be controlled by the truck’s refrig-eration unit, but not without some degree of damage to the produce. Trucking companies who have installed Apex Strip Curtains have reported that, apart from savings in energy, they have experienced a lower percent-age of spoilage, a longer shelf life and better quality produce on delivery.

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

scanner, delivering the same high performance, reliability and value.

The Magellan 1100i reader is designed in a compact form factor with the latest solid state electronics and innovative imaging technology, that allows it to scan the most challenging bar codes across all retail checkout environments.

A major perk of the ad-vanced technology is the aggressive data collection of 1D and 2D barcodes with the ability to be used as either a presen-tation or sweep mode reader. The Magellan 1100i has the ability to read almost any barcode and its small footprint, makes it a natural fit

for scanning applications in convenience, specialty and pharmaceutical stores.

Emerging trends in retail mobile commerce require the use of e-coupons, admission tickets and boarding

passes presented on the displays of cell phones or PDAs. The

Magellan 1100i imager is compatible with the Datalogic Illumix in-telligent illumination technology, with the ability to read bar codes from back-lit displays found in mobile phones, PDAs and PDTs.

This feature not only supports fast paced

consumer lifestyles, but also ‘green’ initiatives to g o p ap e r -less.

For the first time, the Datalogic’s pat-

ented ‘Green Spot’ tech-nology is available on the Me-

gellan 1100i. In noisy workspaces, it is often difficult to hear the ‘beep’ of a scan - the Green Spot technology provides additional visual good read feedback to the user.

Heinrich von Solms, iData Distribution Managing Director, Tel: 011) 397-3779, Email: [email protected], Website: www.idatadistribution.co.za

Significant energy savings can be realised by refrigerated delivery truck operators through the installation of Apex General Purpose Strip Curtains across truck doorways

Scanner for retailersiData Distribution, has launched the latest enhancement to the Magellan family of high performance scanners, the Magellan 1100i barcode reader.

The Magellan 1100i imager represents the second genera-tion offering of the world’s first imaging-based presentation


Market ForumUnique labelsHue-Tone Manufacturing (Pty) Ltd has developed a unique process for printing onto anodised aluminium. The company produces a wide variety of high-defini-tion printed products on aluminium sheets, from single colour to the full colour spectrum.

Anodised and sealed alu-minium is a highly durable material. In-house anodis-ing enables the produc-tion of high quality black or multi-colour print on aluminium, including full colour litho reproduction. Thereafter the print is sealed within the surface of the aluminium, result-ing in a product which is resistant to most chemi-cals, as well as to corro-sion and scratching.

The print process is ideally suited to unique labels,

such as barcodes or serially numbered labels, and offers higher quality print than screen printing.

The company specialises in the manufacture of aluminium barcode labels which are used for a variety of purposes: asset identification, audit and recording of maintenance; container and pallet tracking; identifying warehouse bin locations; labelling of manufactured products.

Either acetone-activated or self adhesive may be pre-applied to the rear of the labels.The company also manufactures anodised aluminium: labels; plaques; panels; signs.

Hue-Tone supplies customers with aluminium products throughout South Africa, Africa, and internationally.

Hue-Tone Manufacturing (PTY) LTD: Tel: (011)493-9038, Fax: (011)493-9038, Email: [email protected]

Strong reputationNissan Diesel South Africa has launched a new range of Medium Commercial Vehicles that adheres to Euro II emission regulations.

“Over the years, Nissan Diesel’s versatile medium com-mercial vehicle offering has built a strong reputation as some of the most reliable and durable trucks on the road and has found favour as a durable no-nonsense product

Enhancing distributionCriterion Equipment, which was acquired recently by Invicta Holdings, has implemented a programme to fur-ther improving its service by enhancing its distribution network and support to its leading brand, TCM forklifts, imported from Japan.

“Criterion Equipment, which has traded in South Africa for nearly 40 years as the sole distributor of TCM forklifts, has sold over 10 000 TCM material handling products to the local market,” says Shaun Collins, national sales manager, Criterion Equipment.

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

“The 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 range are internal combustion forklifts, battery-powered counterbalance forklifts (3 wheel and 4 wheel configurations) as well as battery-powered reach trucks for warehousing applications.

Lindy Morton, Festivitas, telephone and fax (031) 502 2374 or 083 268 6666. Shaun Collins, National Sales Manager, Criterion Equipment (Pty) Ltd, Tel: 011-966-9700, Fax: 086 617 1219, Email: [email protected], Web: www.criterion.co.za

Criterion Equipment has implemented a programme to further improving its service by enhancing its distribution network and support to its leading brand, TCM forklifts, imported from Japan

Log onto www.promech.co.za to read back issues of “Supply Chain Today”


that offers extensive application flexibility,” said Johan Richards, chief executive officer of Nissan Diesel South Africa.

“As one of the world’s leading truck manufacturers, Nissan Diesel is investing a great deal in developing vehicles that offer better efficiency, fuel economy and environmental responsibility. All new trucks launched by Nissan Diesel South Africa since July 2007, already complies with Euro II standards,” adds Johan.

There are three variants in this series that are known as the UD 35A, UD 40A and the UD 40L-A, a long-wheelbase derivative, and many improvements have been made to improve driver comfort, overall performance and fuel consumption.

The range is powered by the ND TD42T in-line 6-cylinder turbocharged engine, which produces 87kW at 3 250 rpm and 275 Nm of torque at 2 000rpm. The 4 169 cc capacity engine ensures that the unit is able to operate at a low

Market Forum

Cross-border deliveriesAs the World Trade Organization (WTO) forecasts a global trade growth of 9.5 % in 2010 and company-internal year-to-date volume statistics suggest a positive development on many trade lanes, DHL Express announces a further expansion of its import services on a worldwide basis.

In addition to offering the most extensive next-business-day import service to more than 200 countries around the world, the company is now backing its pre-noon and pre-nine import deliveries by on-time delivery guarantees in 135 and 90 countries respectively.

The newly-enhanced import services portfolio reflects DHL’s strategy to concentrate on the cross-border express business. DHL has considerably strengthened its interna-tional express delivery network in the past year, building further its industry leading expertise and capabilities. The successful optimisation of its global network and enhancement of its worldwide import billing capabilities over the past months has paved the way for expanded DHL’s Import Express services.

Says Roland Thomas, DHL Express’ Global Vice President Products & Services: “With a clear focus on international express, DHL has created a strong and very competitive range of services that is being offered to our customers through trained international specialists. DHL’s import services are ideal for regular import needs and help cus-tomers manage their import costs, cash flows and supply chain. Customers also benefit from a one company-one invoice-one currency approach.”

Website: www.dhl.com

load percentage, contributing to the expected durability of the range.

Power is delivered through a 5-speed ND MES50C manual synchromesh transmission and is combined with matched final drive ratios to offer excellent economy and performance. Power take-off (PTO) can be installed on the gearbox as an optional extra.

Ray Schulz, Manager: Marketing & Retail Services, Tel: (012) 564-9550, E-mail: [email protected]


has to drive produce to market and do various other driving-type work.

“However, in the past two or three years, I have had young black women arriving at the school wanting to be trained as truck drivers. I have to admit I was surprised. However, it is the new South Africa, and I could see no reason why they should not drive trucks if they wanted to. I converted the barracks so females could also stay there.

Best wishesA couple of women drivers graduated from the XYZ Driving School and went on their way with the trainer ’s best wishes.

However, the trainer, who wishes to remain anonymous, said his curios-ity nagged him about why these girls wanted to drive, and who was hiring them.

A couple of months later there was a fatal truck accident on the Durban-Johannesburg run. It was this crash that provided the trainer with the answer he sought. For in the cab of the wreck, not one body was extricated, but three. Of the three, two were

TRUCKING

M ostly, I get the local farmers bringing in a worker to have him trained as a truck driver. These trainee drivers live in my driving school barracks

for three weeks during which time I train them. When they have a licence, the new driver then

Hooking the TruckersOne of our people here at “Supply Chain Today” recently

bought a property in a small town in the Eastern Free State. The tenant renting the property ran a driving school and told

our man the following story.

I converted the barracks so females could also stay there


women and one was the driver. The driver and one of the women were in a state of undress.

It transpired that the hookers who plied their trade on the Durban – Johannesburg run understand that their truck driver customers cannot stop their rigs for 15 minutes of romping recreation. So the way around this for the ladies was to team up with another young woman who knew how to drive a truck. While one was behind the wheel, the other could be pleasuring the driver in the truck’s bunk. The arrangement turned out to be satisfactory for more than one truck driver, and lucrative for these two-girl teams.

So the tenant concluded: “There is something new every day. And just because they are so-called ladies of the night, does not mean they are lacking in enterprise.”

The driver and one of the women were in a state of undress

TRUCKING


G ross vehicle mass (GVM) is the recog-nised basis for vehicle selection and capital investment for any transport task. GVM represents a truck’s total

operational mass that includes payload, cargo body, driver and crew, chassis and cab and any other extras. This vehicle includes a 13-model line-up compared with the previous 9-model range and offers GVM’s stepped from 10000kg to 11 000kg, 13 500kg, 15 000kg, 16 000kg,

Class-leading Heavy Truck Range Launched

“Supply Chain Today” was recently invited to the launch of the new Isuzu F-Series. Already enjoying a strong reputation in South Africa with its heavy-truck brand, the new Isuzu F-

Series looks set to take this reputation even further in areas of safety, economy and environmental care.

22 500kg, 24 000kg and 26 000kg making its freight carrier line-up available to South Africans a formidable one. Specialist F-Series models in-clude full-time 4 X 4 and 6 X 2 freight carriers, a 6 X 4 refuse compactor and truck tractors. For trailer operations Isuzu F-Series has a gross combination mass (GCM) that tops 32 000kg in the model FVR 900.

Modern technology truck model line-up1 January 2010 saw a change in the transport industry with only trucks equipped with Euro 2 engine emission technology allowed to be produced in South Africa. This has not proved problematic for Isuzu as their entire South African Isuzu range, medium N-Series, heavy F-Series and extra-heavy Gigamax now include turbo-intercooled, electronically-managed engines for 2010 to match Euro 2 requirements. Utilising common rail fuel-delivery systems, improved fuel consumption is a hallmark of these new technology engines.

The advantage in common rail diesel engines is very high injection pressure – over 1 600 bar – that is consistently maintained from idle to maximum engine speed. This ensures clean burning in a diesel engine’s compression ignition cycle with the benefit of improved fuel economy and reduced exhaust emissions.

Further to this, the Isuzu common rail diesel engine design has other advantages in that these engines are flexible and ready for the introduction of both Euro 3 and Euro 4 emission standards with only minor changes required when the time comes.

Interesting Isuzu truck factsIsuzu ranks among the top four medium to extra-heavy truck manufacturers in South Africa with an annual retail market share greater than 10%. The total registered South African Isuzu truck population up to 25 years old is over 36 500 mak-ing it one of the most durable and reliable trucks on South African roads. For an international perspective, Isuzu is also Australia’s leading truck supplier – a position Isuzu has held for 20 consecutive years.

At the beginning of 2010 there were over 17 244 Isuzu F-Series registered and operating on South African roads. Some of these Isuzu F-Series heavy trucks are as old as 25 years and still in daily operation. A heavy truck is classed as those falling into the category of 8 500 to 16 500kg gross vehicle mass (GVM), or from around 4 500 to 9 000kg payload.

TRUCKING


Proven safety technologyThe new truck range for 2010 in South Africa is equipped with ABS (Anti-lock Brake System) for enhanced safety. ABS also has the added benefit of steer-ability under emergency braking reducing the skill required of drivers in potential accident situations. These trucks are all also equipped with an engine exhaust brake for extra retardation without using a footbrake that preserves brake linings and keeps the brakes fade-free for any emergency application.

Standard automatic slack adjusters ensure that brake settings are correct at any stage in spite of brake lining wear. In addition to these, drivers will

TRUCKING

Offering fully-homologated seating for a driver and six passengers

appreciate the inclusion of an air-suspension seat on every model in the new F-Series which will serve to minimise driver fatigue with a consequent improvements for productivity and safety.

Standard crew cabThe F-Series range also includes one crew-cab model, the Isuzu FSR 750 is a 13500kg gross vehicle mass (GVM) truck, offering fully-homolo-gated seating for a driver and six passengers. This matches National Road Traffic Act, Regulation 247 requirements for goods and passengers to be carried separately. An outstanding technical feature of the FSR 750 crew cab is that it is powered by an electro-hydraulic tilt mechanism to offer full maintenance access to the engine as on all Isuzu truck cabs. All doors in the new F-Series are also equipped with side-impact protection beams.

Another technology benefit is unitised construc-tion for cab parts on both the N and F-Series as medium and heavy truck models are equipped with common cab parts – doors, lights and dashboard, for example which simplifies parts inventories for large fleets.

Hanlie du Preez, Isuzu Truck SA, Tel: (011) 563-4125, Fax (011) 806-4693, Email: [email protected]


W hen “Supply Chain Today” speaks to Michael Badwi at Supply Chain Junction, he tells us that the vari-ables involved can be staggering.

In a typical DC, there can be up to 80 million personnel and operational variables affecting the planning of job assignments for typical workloads, service level commitments and costs.

Some of these include number and length of shifts, employee details, overtime expenses, job specifications, time constraints, volume and equipment requirements. “Each of these has its own variables attached and a WMS should be capable of controlling these,” explains Michael.

Skill allocation“For instance, employees – who could be either full-time or temporary – should be assigned tasks according to skill level, historical performance and availability. This allows management to al-locate staff according to their abilities in order to optimise efficiency. It is also possible to factor in additional costs such as overtime expenses.”

In spite of this, numerous DCs still manage op-erations manually, leaving them open to error in terms of efficiently managing systems. According to Michael, labour tasks should ideally be man-aged by a system such as Manhattan Associates SCOPE Labour Scheduling Optimisation™. “By analysing performance records, management can determine which employees work best in specific areas.” The person with the right skills is then matched to job requirements across the entire enterprise – not just within operational silos.

The Evolution of WMSAs the supply chain becomes increasingly complex, so warehouse management sys-

tems are evolving to meet the demand. This is essential, since the number of processes requiring careful control have outstripped

the ability of any manual management pro-cess.

WMS & INVENTORY CONTROL

The person with the right skills is then matched to job requirements


Staff sharingAn example is the manner in which supervisors may assign teams to tasks such as unloading or picking, without factoring in the need for activity ‘sharing’ should one area become understaffed while another is overstaffed. Invariably, the su-pervisor in charge of the overstaffed operation will send his least effective performers to relieve the other team, rather than affect productivity in his own processes. An automated solution would ensure maximum efficiency and performance in both areas.

“Labour costs make up half the cost of running a DC,” says Michael. “Being off the mark by a few percent in a facility with an annual payroll in the millions can amount to significant unnecessary expense.” Refining the process on an enterprise-wide level not only reduces expenses, but also boosts efficiency, service levels, throughput and employee satisfaction.

Spreading the loadOn this topic, Michael raises other areas in which WMS has a valuable role to play. “As the supply pipeline becomes more global, companies are sourcing cheaper goods or materials internation-ally. This means that order fulfilment encompasses more regions and countries. It also drastically changes the way warehouses function.”

Warehouses are no longer seen as simply a place


Time-to-market for new products has dropped by 50 to 70 percent


to store goods, or as a cost centre. They now offer a source of competitive advantage, giving an opportunity to enhance revenue and customer satisfaction. This has led to the growing accep-tance of the necessity for sophisticated software to manage not only the warehouse, but also the entire supply chain.

Much smarterNew technology options include voice recogni-tion, while optimisation technologies cover not just labour management, but also slotting. Most importantly, the system needs to facilitate inte-gration applications such as planning, replenishment, transport management, distributed order management, supply chain intelligence, reverse logistics and ERP systems. Ideally, inventory should be visible across the supply chain, transmitting information im-mediately to all parties involved in the process.

“Companies using advanced Warehouse Management Systems experience sig-nificant improvements in efficiency,” emphasises Michael. This statement is borne out by the fact that time-to-market for new products has dropped by 50 to 70 percent over the past 20 years.

Additionally, inventory-to-sales ratios are less than half, and the number of unique products available has skyrock-eted. “In many instances, customers don’t just want more products, they want better products,” he elaborates, emphasising the fact that customer satisfaction is not just a matter of speed and quantity, but also quality.

Proof of the puddingAn instance in which WMS has earned its stripes is the recent Foschini project that Supply Chain Junction was involved in. Installing Manhattan Associates’ Warehouse Management Solution for Open Systems in four centres in Cape Town, the aim was to support busi-nesses processes such as postponement, cross-docking, part order allocation and part delivery.

The software allowed the standardi-sation of the supply chain and gave flexibility to implement a continuous improvement programme. According to Jan Tukker, group logistics direc-tor at Foschini, the company chose Supply Chain Junction’s Manhattan

solution due to the product’s reputation in the retail environment. To date, feedback has been overwhelmingly positive, with shipping volumes improving substantially within just five days of go-live.

“It’s no longer enough to simply get the job done,” concludes Michael. “Now a company’s survival depends on constant improvements to maintain a competitive edge. The right software can give that advantage.”

Michael Badwi, Supply Chain Junction, Tel. (021) 426 1703, E-mail: [email protected], website. www.scjunction.co.za


To date, feedback has been overwhelmingly positive


Improving Efficiency

Reducing CO2 EmissionsReducing Kilometres Travelled

GreenFleet

Powered by DigiCore

Green FleetT h e o n l y a l T e r n a T i v e !With C-track you can improve the efficiency of your fleet, reduce your

kilometres travelled and achieve reduced CO2 emissions.

6738

NU

THO

USE

MA

RKET

ING


J ane Thomson, MD of Softworx, an EOH company and reseller of Infor in sub-Saharan Africa, reminds us that regulatory challenges are also put-

ting manufacturers under pressure to track their products with even greater precision. They must have immediate access to data on everything, from lots to serial numbers to shipping locations, if they are to avoid crushing costs – and legal penalties in the case of a product recall.

No choice”Given these factors, suppliers are faced with escalating costs and complexity, driving de-mands for greater productivity in warehouse operations. With distribution seen as a cost centre, companies have no choice but to find ways to drive warehouse performance to new levels if they want to remain competitive and profitable. However, their existing ERP systems often lack the automated capabilities necessary to increase visibility into operations, enhance market agility, and boost warehouse productivity.”

The limitations of many companies’ warehouse operations are manifested along three key dimen-sions: orders, labour, and the warehouse assets themselves. One of the key factors undermining productivity and performance on all three of these dimensions is an absence of clear visibility into operations.

ProductivityJane says, reliant on existing ERP systems, most of today’s manufacturers and distributors lack detailed inventory tracking capabilities. This results in difficulty to support the same product housed in different discrete locations within a warehouse. Different pallets become one bundle of inventory or lot in their systems. They are unable to track the lots and expiration dates of those pallets.

Space optimisation becomes another problem as workers fail to put products in appropriate bins or support the proper rotation of products out to customers. And, finally, existing ERP systems lack the capabilities necessary to proactively

Supply chain management (SCM) has become increasingly difficult as companies source products, components, and materials on a global scale. Similarly, they are distributing their goods more globally as they seek to penetrate new

and growing markets. This means products must travel far greater distances and be stored in more locations, exacer-bating the challenges of visibility and threatening perfect

order delivery.

manage and monitor labour productivity.

Soaring costs“Manufacturers and distributors that intend to remain competitive must move beyond their exist-ing ERP systems and adopt advanced capabilities. Advanced warehouse management solutions are proven to maximise product placement strategies, prioritise tasks, implement productivity standards, and increase logistics efficiency,” adds Jane. “Those that have invested in advanced warehouse management solutions are strengthening order management, increasing labour productivity, and maximising their use of warehouse assets.”

She concludes that as customer demands rise and supply chains grow increasingly global, companies will need to drive gains in warehouse productivity and performance to avoid soaring costs. But, just as important, these investments promise to pay off in terms of greater warehouse visibility, agil-ity, and productivity as they lay the foundations for profitable growth in the hyper-competitive markets of today and tomorrow.

www.infor.com

Jane Thomson

The Real Brain


Improving Efficiency

Reducing CO2 EmissionsReducing Kilometres Travelled

GreenFleet

Powered by DigiCore

Green FleetT h e o n l y a l T e r n a T i v e !With C-track you can improve the efficiency of your fleet, reduce your

kilometres travelled and achieve reduced CO2 emissions.

6738

NU

THO

USE

MA

RKET

ING

�0 Supply Chain Today May 201030 Supply Chain Today Jan 2010

This prestigious award recognises people, projects and products

that have gone above and beyond the call of duty to

enhance the environment in which they operate.

The inaugural awards in 2009 enjoyed a wonderful response

from the supply chain community and everything is on track to make this year’s event one of the indus-try’s most prestigious accolades.

Come and see who walks away with the coveted trophies and

enter your product or project for this year’s event.

Entries for this year’s event close in June and the awards ceremony is being planned for 26 August 2010.

GreenSupplyChainAwards

Contact: Catherine Larkin on

Tel: (011) 789-7327/787-9127,

Cell: 083 300 0331, Fax: (011) 787-7865

Email: [email protected]

Are You Doing Your Bit?

Supply Chain Today May 2010 �1

PROCUREMENT

P rocurement within the South African infrastructure environ-ment has long been a conten-tious issue with an array of

vastly differing policies and procedures making it difficult for both consulting engineers as well as their clients to make an informed and equitable deci-sion in this regard.

Consulting Engineers South Africa (CESA) has embarked on a nationwide campaign, visiting all nine regions, to inform and educate on Procurement best practice for members and public sector clients thus ensuring that our taxes are spent effectively.

CESA in consultation with the CIDB as well as industry experts has developed a Best Practice Guideline for the Procurement of Consulting Engineering Services that is in line with the latest legislation, including the Construction Sector Charter.

Working at riskWally Mayne, CESA’s Contractual Affairs Manager states, “Some of the issues that are being addressed include dealing with an inadequate brief; allowing sufficient time from the request for proposals to the closing of the tender; understanding the BBBEE scoring system; understanding the reason why tenders may not be re-issued within a 6 month period; the issue of unlimited liability; and the implications of working at risk.”

Roll-out The CPD accredited technical briefing provides delegates with the opportunity to workshop national and international best practice with experts. The briefing unpacks the procurement of consulting engineering services and delegates attending the briefing will be issued with best practice guidelines in this regard. The content of the Manual and the Technical Briefing focuses on the full lifecycle of a project as well as the role of both the client and the consultant. This includes the monitoring of consulting engineering services by the client.

For the programme details please visit www.cesa.co.za or contact, Graham Pirie, Consulting Engineers South Africa (CESA), Tel: (011) 463-2022, Email: [email protected]

Head-on

Zulch Lotter, CESA President

Procurement policies and guidelines published by the Construction Industry Development Board (CIDB) are among the best in the world. However, for a variety of reasons many clients and

consulting engineers do not apply these when procuring service providers.

Understanding the reason why tenders may not be re-issued within a 6 month period

�2 Supply Chain Today May 2010

Supply Chain Today May 2010 ��

A lthough in the making for quite some time, CIPS SA got off to a great start at an annual dinner in April 2010 which kicked off their two-day conference held

at Emperors Palace, Johannesburg.

The opening address by Alec Irwin, retired Minister of Public En-terprises, emphasised the fact that spend on infrastructure in South Africa is vital but it’s a long-term imperative even while short-term pressures such as BEE, green issues etc, remain at the forefront. But he warned that South Africans need to keep a careful eye on the horizon.

Though local compa-nies have a 10 to 15 percent automatic ad-

Not a Backroom Activity

The old IPSA (Institute of Purchasing and Supply South Africa) and CIPS (Chartered Institute of Purchasing and Supply) have formed a new entity to launch CIPS Southern Africa (CIPS SA).

vantage when tendering for projects, large global suppliers have raced ahead. And it’s no good creating a ‘bubble-effect’. For example, despite the 115 percent tariff on ‘assembled’ vehicles, it’s still possible to import cheaper.

The question is how to build a competitive local industry? Gearing up for Transnet and Eskom work, for example, is risky for private companies because of the stop-start nature of projects. They need some certainties and transparency. Overseas, suppliers are benchmarked to keep them honest and relationships are long-term.

Alec pointed out that we need sophisticated and articulated government procurement policies or corruption reigns. Money comes into Africa but very little stays in Africa. It flows in and most flows straight out again while there is very little technology transfer.

He ended off by saying that procurement is not a backroom activity. It is one of the main drivers to build society together. Most importantly, we have to be globally competitive, just being on home soil, doesn’t mean we’re going to get the business!

With more than 60 000 members worldwide, Cips has grown to become an enduring force in the purchasing and supply profession. Their Code of Ethics has become the international model for purchasing and supply practice. Their study programmes are recog-nised around the world and they also have offices in the UK, Australia and the Middle East.

With an impressive heritage and a genuine passion for the profession, these are exciting times to be part of Cips and the organisation is always looking for new membership.

If you’re interested, please contact Cips Southern Africa (Pty) Ltd on Tel (012) 345-6177, Email: [email protected], www.cips.orgsouthernafrica

Alec Irwin

CIPS

�� Supply Chain Today May 2010

Market Forum

Local contentUniversal Africa Lines (UAL), a specialist shipping line to West Africa’s industries, has added to its African invest-ments with a new office in the Angolan city of Luanda.

Monique Gubler, formerly Chief Operating Officer of a global logistics provider, has been appointed General Manager of UAL Angola.

Monique says the office will satisfy demand in the country for ‘local content’ - a strategy of regulating foreign invest-ment that is common in Africa and which forms the basis of Angola’s economic resurgence after years of strife.

Also called indigenisation and black empowerment, local content is gaining support in Africa and takes on a number of forms, including: requiring domestic African companies to do most of their trade with other African companies; requiring foreign companies to invest in the countries they do business in, directly or in partnership with local business (rather than simply repatriate their earnings); further requiring them to use local skills and to run skills transfer programmes; and frequently requiring them to sell a substantial stake in their local operation, to effect a rebalancing of economic assets and resources.

Monique says in keeping with indigenisation practices, UAL will develop the Angolan office and market in partnership with a local entity which has been approved by Sonangol, the Angolan national oil and gas company.

She notes that UAL’s investment will contribute to the development of a local shipping industry and augment regular shipments from South Africa as well as Europe and the USA into the West African region. UAL maintains

Christo Jacobs joins Business Modelling Associates Business Modelling Associates is pleased to announce that Christo Jacobs, formerly of i2 Technologies, has joined the company effec-tive January 2010. Christo brings with him a wealth of experience having spent the past ten years as a Solution Strategist at i2 Tech-nologies, Inc. Christo is a skilled supply chain consultant with over 15 years of strategic modelling experience across multiple industries including Consumer Packaged Goods, General Manufacturing, Min-ing, Automotive, Pharmaceuticals, and Logistics.

Commenting on his recent move, Christo says that he is excited about the possibilities of Enterprise Optimizer®, a leading integrated business planning technology developed by US based River Logic Inc and distributed locally by Business Modelling Associates

a regular bi-monthly service from South Africa to the West African oil theatre with many shipments originating in Angola. Oil and Gas equipment from the West African oil theatre will be sent to South Africa for refurbishment after which it will be shipped back to West Africa.

Universal Africa Lines, Magna Carta, Margot Gutteridge, Tel: (021) 417-5801, Fax: (021) 425-6675, Email: [email protected]

Know your oats International trade is indelibly linked to international transportation. This function must be properly managed and controlled by people familiar with and with a sound understanding of the complexities involved.

Importers and exporters rely to a greater or lesser extent on freight forwarders and customs brokers, but the re-sponsibility for the achieving the desired result remains with their management. It is incumbent on import and export management to understand the impact of the many elements of international transportation, and this applies to all disciplines – logistics, shipping, marketing, produc-tion and finance.

From the freight forwarder ’s perspective, management and staff must have the skills and knowledge to operate in this multi-faceted environment.


Market ForumThe Department of Business Man-agement’s Chair in Logistics at the university of Pretoria is introducing two programmes in “International Freight Management and Administration”. The first of these will commence in July 2010 and will run over a period of five weeks. Study will take place at the university main campus in Pretoria and involve 160 contact hours with lecturing being provided by subject matter experts.

With the objective of improving the stu-dents knowledge and competence in the vast and intricate field of international trade, the course will examine amongst other topics, the needs of importers and exporters; the contract of sale, delivery terms and payment methods; the role of international organisations such as the World Customs Organisation, the ICC and IATA; international freight forwarding and the role of Customs; modal selection and documentation.

The advanced programme will run over six weeks with 200 contact hours and will introduce students to the legal framework of international transport; trade issues such as anti-dumping, the Common Customs Area, and the Authorised Economic Operator; the transportation of dangerous goods and other special cargoes; marine insurance, financial management, and freight forwarding within the supply chain. The advanced programme will commence in 2011.

Department of Business Management – University of Pretoria, Wesley Niemann, Email: [email protected], Tel: (012) 420-4635, Fax: (086) 632-7333

New in South AfricaJohannesburg, South Africa - RedPrairie Corp, a productiv-ity solutions provider, has established its own operations in Africa with head office located in Johannesburg, South Africa. For the last 10 years RedPrairie has been repre-sented in Africa through its value added resellers. During this time, RedPrairie has established a customer footprint in some of the largest and most complex warehousing and distribution operations in South Africa such as Imperial Logistics, Clover and Simba.

“It was important to us to maintain service levels for our existing South African customers, which is why experienced personnel has been transferred from the VAR to RedPrairie,” says Sandy Arundel, Regional Director, RedPrairie.

“We are excited about the launch of our new office in South Africa, and look forward to helping manufacturers, distributors, and retailers manage their inventory, work-force, and transportation more efficiently,” says Peter van

Merode, Executive Director, RedPrairie.

“The new office gives companies across the continent access to RedPrairie’s full suite of productivity solutions. Local companies can also benefit from global best practices by tapping into RedPrairie’s experience of working with market leading companies for over 30 years,” he adds.

RedPrairie delivers productivity solutions to help com-panies around the world in three categories – workforce, inventory and transportation. The company provides these solutions to manufacturers, distributors and retailers look-ing to support business strategies that increase revenue, reduce costs and create competitive advantage.

RedPrairie, South Africa, Office: 0861-339-251, Fax: 0865-174-284, Email: [email protected], Web: www.redprairie.com, Ken Osler, Tel: 082-805-3360, Email: [email protected], Sandy Arundel, Tel: 082-949-2385, Email: [email protected]

Services expandedImperial Logistics and e-Logics (Pty) Ltd today has acquired 50%+1 in the share capital of e-Logics

“We are excited about the addition of e-Logics to our In-tegration Services portfolio,” says Cobus Rossouw, Chief Executive Officer, Imperial Logistics Integration Services. “Not only are we expanding our technology service offering, we are also improving our business process outsourcing capabilities to address specific requirements with greater software and systems support, providing integrated solu-tions as and when required.”

IMPERIAL Logistics’ comprehensive experience of integrated logistics and supply chain management, complemented by e-Logics’ multi-disciplinary expertise is a win-win com-bination. The technology services and design capabilities offered by e-Logics will be leveraged to expand the Imperial Logistics value-add proposition. Rossouw continues: “In


RFA Convention 2010

RFA Convention 2010

Wild Coast Sun

WITHOUT TRUCKS, SOUTH AFRICA STOPS!

Sunday 22 August to Tuesday 24 August 2010Shift into Overdrive


collaboration, both Imperial Logistics and e-Logics will continue to focus on the development and implementa-tion of integrated logistics and end-to-end supply chain solutions including transportation operations and asset management in the rail, road and utilities industries.”

Following the transaction, e-Logics will be able to offer their customers 125% BBBEE procurement recognition, in line with Imperial Logistics’ formal rating as a Level 4 Contributor.

Simoné Du Plooy, Brand Manager, Imperial Logistics: Tel: (011) 821-5500, Fax: (011) 873-1855, Email: [email protected], Website: www.imperiallogistics.co.za

Market Forum

Nervous exporters Credit insurer, Coface South Africa, has launched a service giving exporters financial and credit information on more than 50-million companies globally.

“South African exporters currently face massive challenges in the global market. The international economic slowdown has resulted in many financially stable companies becom-ing unstable almost overnight,” says Coface Operations Director, Jacqui Jooste.

“Countries that a year ago were classified as ‘safe’ to

A n example is provided by a major bank in South Africa that holds weekly meetings with the branch offices around South Africa to discuss progress, to disseminate new policies, to col-

lect feedback from each office, and to have each branch share its experiences with the other branches - telecon-

ferencing provides the necessary multidirectional flow of information. A big success for one local branch can be shared with the other branches so everyone in the group can benefit from it.

This major bank continues to conduct virtual meetings on a weekly basis to ensure that a community is formed between its branches and that each branch is involved and engaged, irrespective of whether they are located in the capital or in a remote location.

Teleconferencing has revolutionised the way business is conducted, just like e-mail and mobile phones have done in the past few years. Every organisation’s success is directly related to its ability to exchange information quickly and effectively. “I encourage each organisation to learn about the new teleconferencing tools and how to benefit from them – today they are available to every-one,” says Ari Meyerthal, Managing Director of Chorus Call South Africa.

ChorusCall, Tel: (011) 305-2000, Email [email protected]

Teleconferencing TrendsTeleconferencing has now become an essential tool for fast growing and changing business around the world.

Teleconferencing does not replace the essential face-to-face meetings, it supplements those meetings and keeps the communications channels open between those meetings.

trade with have been turned upside down. Whilst the current global economy is a minefield, exporters should be exploiting the opportunities available to them using the right information as a guideline to successfully export,” she says.

“While some doors have closed for exporters in previously well-developed markets, many windows of opportunity are opening in unexpected and unexplored markets, but companies need accurate information about them.”

Coface is able to provide exporters with up to date reports on overseas companies through its international network of information providers in over 94 countries. “The infor-mation is always up to date because it is used internally for our credit insurance business worldwide on a daily basis,” says Jacqui.

“Without good quality information on specific companies and markets many SA exporters are nervous to invest time and money.”

Charles Smith, Tel: (011) 781-6190, Fax: (011) 326-4760, Email: [email protected], [email protected], web: www.csa.co.za, www.Sha-Izwe.co.za. Coface: Natasha Hardy, Tel: (011) 208 2517, Fax: (011) 208 2601, Email: [email protected]

www.engineerplacements.com

Engineer Placements

RFA Convention 2010

RFA Convention 2010

Wild Coast Sun

WITHOUT TRUCKS, SOUTH AFRICA STOPS!

Sunday 22 August to Tuesday 24 August 2010Shift into Overdrive


Market Forum

Index to Advertisers

Afzelia 20Barpro 15Chorus Call 14DHL Inside Front CoverDigicore 28Doosan 4Eastleigh Varic 32Engineer Placements 37, 38ILS 31Kemtek 10Linvar 6Mercedes Inside Back CoverPaul Steyn 12Psion Outside Back CoverRFA Convention 36SAID 24GSC Awards 30S&N Labels/Bartrans Outside Front CoverUniversal 22

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:........................................................................................

SubscriptionNew head appointedJohn Sims former General Manager of Magister Africa, Goodyear South Africa’s distribution business in Africa has been appointed General Manager of Trentyre.

In his new role, Sims, 58, will oversee Goodyear ’s distri-bution activities throughout South Africa and Africa where it currently trades in 13 territories.

“Historically, Goodyear ran two separate distribution operations Magister Africa, for distribution in Africa and Trentyre, for distribution in South Africa. There has been a move to consolidate the two.”

“From 1996 until now, our focus has been on growing our African business.” John says business in Africa has changed dramatically in the 13 years Goodyear has been involved. “At the start, many countries were just coming out of war and were poor and under-developed. The situ-ation was fairly volatile. Today, the economic situation in many of these – like Angola, Zambia and Mozambique – has improved drastically.”

Lize Hayward, Group Public Relations Manager, Goodyear Tyre & Rubber Holdings (Pty) Ltd, Tel: (041) 505-5400, Fax: 086-614-0368, Email: [email protected],

John Sims

Our vans are more reliable, versatile and practical. Wouldn’t a trip to Brazil come in handy too?Enter now for the kick of a lifetime.

* Terms and conditions apply

Purchase any Mercedes-Benz Vito, Viano or Sprinter between 23 March 2010 and 10 July 2010 and stand a chance to win a trip to the Brazilian Formula 1Grand Prix*. For more information or to locate your nearest dealership contact 087 803 1020 or visit www.mercedes-benz.co.za/vans.

0815

67

081567_Supply Chain.indd 1 2010/04/01 9:52 AM


Our vans are more reliable, versatile and practical. Wouldn’t a trip to Brazil come in handy too?Enter now for the kick of a lifetime.

* Terms and conditions apply

Purchase any Mercedes-Benz Vito, Viano or Sprinter between 23 March 2010 and 10 July 2010 and stand a chance to win a trip to the Brazilian Formula 1Grand Prix*. For more information or to locate your nearest dealership contact 087 803 1020 or visit www.mercedes-benz.co.za/vans.

0815

67

081567_Supply Chain.indd 1 2010/04/01 9:52 AM

�0 Supply Chain Today May 2010

Tel: +27 11 805 7440 / Fax: +27 11 805 7444. E-Mail: [email protected]

[email protected] / [email protected] Web: www.psionteklogix.com

THE ALL-NEW WORKABOUT PRO™ 3: IT'S MODULAR BY DESIGN

A next-generation product, the WORKABOUT PRO 3 is the most modular handheld device in the ruggedised market. Intelligent, and highly flexible, it delivers numerous choices of hardware add-ons, software applications, and upgrades. So it's easy to configure for a variety of applications.

It's made for your mobile workforce, boosting productivity and enabling real-time connectivity in the field. What's more: it's easy to use and lightweight, with excellent screen quality and battery life.

Whatever the environment, the WORKABOUT PRO 3 just works - no matter how tough the task.

SCT: May10

Documents

Transcript of SCT: May10