Supply Chain Apr12

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Supply Chain Today April 2012 1

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"Supply Chain Today" is endorsed by the Council for Supply Chain Management Professionals (CSCMP), the Consumer Goods Council of SA (CGCSA), the Chartered Institute of Logistics & Transport SA (CILTSA), the SA Express Parcel Association (SAEPA), SAPICS, the Road Freight Association and SmartX.

Transcript of Supply Chain Apr12

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Supply chain value eluding you?Problem solved.

Economic cycles are increasingly unpredictable. Demand cycles

are in a constant state of flux. The goal posts are continually shifting

as pressure intensifies on supply chains around the world. This rapidly

changing environment demands visibility and flexibility, agility and speed.

Our solutions can help you create competitive advantage. As a specialist

logistics services provider, Crossroads has the network, the experience

and the capabilities to reduce your lead times, increase your reactivity

and continually improve your supply chain.

For more info please call us on 0860 99 9940 or go to crossroads.co.za

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CROSSROADSAgile Minds Flexible Solutions

Transportation Management | Broking | Dedicated Contract Carriage | Short Haul | Less-than-Truckload Distribution | Courier / Express Parcel | Shared & Dedicated Warehousing

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April 2012

Contents

Proprietor and PublisherPROMECH PUBLISHINGTel: (011) 781-1401Fax: (011) 781-1403E-mail:[email protected] Website: www.promech.co.zaManaging Editor: Susan CustersDeputy Editor: Eleanor SeggieTrucking Editor: Raymond Campling

Advertising Sales:Lelanie DiamondProduction and event Manager: Zinobia DocratDTP: Donovan VadibaluAdministration and Circulation Manager: Catherine Macdiva

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 publica-tion, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Cover Story4 Sweden’s Classy Prizefighter

Barcoding, Labelling, Scanning & RFID7 Bar None9 Slowly Infiltrating the Market

Forklifts11 Fabulously Flexible13 Proper Battery Care and Maintenance

RFA15 Definitely Doing Something

Market Forum — Unit 18 Market Forum - Unit

Third Party Logistics22 Leading the Logistics Fight

Tertiary Education25 A Solution to the Education Problem in SA

Trucking27 Creating Infrastructure31 New on the Scene33 Record Revenue

Market Forum — Supply35 Market Forum - Supply

Endorsing BodiesAfritag (div of Smart Card Society

CCF (Cold Chain Forum)

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)

Featured on the cover:

Scania South Africawww.scania.co.za

Star logistics Eugan Kuppasamy

083 440 8835

“Supply Chain Today” is delighted to announce that the recently-formed Cold Chain Forum is endorsing us. This body is primarily devoted to the pharma-ceutical industry and we will be telling readers all about their mission and vision next month and in the months ahead.

Welcome Aboard!Susan CustersManaging Editor

Susan Custers with Clarence (left) and Cilla, not to be outdone

T00648 (A4) Generic Ad Rep 3/9/12 2:12 PM Page 1

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Supply chain value eluding you?Problem solved.

Economic cycles are increasingly unpredictable. Demand cycles

are in a constant state of flux. The goal posts are continually shifting

as pressure intensifies on supply chains around the world. This rapidly

changing environment demands visibility and flexibility, agility and speed.

Our solutions can help you create competitive advantage. As a specialist

logistics services provider, Crossroads has the network, the experience

and the capabilities to reduce your lead times, increase your reactivity

and continually improve your supply chain.

For more info please call us on 0860 99 9940 or go to crossroads.co.za

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48

CROSSROADSAgile Minds Flexible Solutions

Transportation Management | Broking | Dedicated Contract Carriage | Short Haul | Less-than-Truckload Distribution | Courier / Express Parcel | Shared & Dedicated Warehousing

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COVER STORY

T hey are confident that the tests will confirm what they already know and show that the big powerful engine of the Scania will be best in class in every aspect including

economy. Trials with a number of clients have shown fuel savings of no less than 10% when compared with rival trucks. Others have even reported savings as high as 20% on their fuel bills and, more importantly, are maintaining higher average speeds as a result of the improved performance.

Like a well-honed prizefighter, the Scania V8 620 truck tractor comes from a growing lineage of powerful high horsepower V8 derivatives that have become top contenders for long haul operations in South Africa. “The Johannesburg to Durban route is a prime example of Scania’s dominance in the highway truck segment. When one looks at new model trucks on that stretch of highway, it is clear that we are a dominant player,” says Scania South Africa director of sales truck, bus and used vehicle division, Alec Mack.

Rising starPerhaps the best example of what Alec is talk-

ing about is the case of Star Logistics, owned and managed by Eugan Kuppasamy, a hands-on logistician with a passion for hauling and for trucks. Being a perfectionist, he has compared fuel consumption of his new Scania V8s with that of an American contender also at 620 hp and another European contender delivering 610 HP. Under similar conditions and loads the burly Swedish vehicle outperforms both in terms of fuel consumption and work rate.

“My fleet operates mainly on the Durban to Johannesburg and Cape Town routes and the savings I have noted are considerable. But equally importantly to me is the fact that my Scanias look good and portray the right image,” says Eugan. He adds that his drivers prefer the Scania trucks to the other brands because they are easier to drive and are more comfortable on the long road. In terms of environmental responsibility, the low emission Euro 4 engines

Scania’s truck specialists are barely able to contain their excitement at the prospect of running their new V8 620

truck tractor against opposition trucks at this year’s Truck Test organised by Fritz Helberg in association with the Road Freight Association conference. This test will establish how

contenders stack up when it comes to overall economies and performance.

Sweden’s Classy Prizefighter

Trials with a number of clients have shown fuel savings of no less than 10% when compared with rival trucks

Alec Mack

4 Supply Chain Today April 2012

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COVER STORY

The low emission Euro 4 engines are a move in the right direction for the company

are a move in the right direction for the company.

“As a responsible carrier, we are comfortable with the fact that fuel availability has to be studied on our routes, as does additives for emission control. It is an added administrative function, but this is a price we are happy to pay,” he says.

Big bruiserAlec explains that people have come to realise that there is no replacement for displacement in South African conditions. Whether you are run-ning from Cape Town to Johannesburg or Durban makes no difference - the gradients are quite demanding. The torque of the V8’s allow drivers to stay in higher gear for longer and so use less fuel while maintaining a higher average speed.

He explains that the massively powerful V8 620 engine flattens the typography with ease. With 3000Nm of torque, this long haul vehicle makes light work of any condition, no matter how challenging.

When driven correctly the “old displacement adage” holds true with the 16L engine barely needing to work up a sweat to reach its peak torque. The engine produces a flat torque curve that makes hill climbs and heavy loads a cinch.

Cult followingFor fifty years Scania’s powerful V8 engines have plied the world’s roads with little fanfare. But it is becoming evident that there is a growing enthusiasm for the V8 trucks that amounts to somewhat of a cult following among long haul carriers.

“With each new V8 model we have a growing fan base. So when we launched our first limited edition V8 580 hp truck two years ago it was no surprise that demand outstripped supply and we have subsequently launched new models and limited editions to keep up with this demand.

“Initially, our clients were buying the big Scania (500, 580 and 620 hp) as fleet flagships to be driven by the best drivers as a reward for outstand-ing service. But,” laughs Alec, “it soon became evident that those big heavyweight contenders were lighter on fuel and cheaper to run than their ordinary fleet vehicles and soon many customers converted their entire long haul fleet to Scania’s V8 models.”

Better driving experienceThey also found that the driver had a far less frantic driving experience and no matter what terrain, the trucks were able to maintain high average speeds. Although unlike the limited edition “hotel on wheels,” as the fleet vehicles have a slightly lower specification level, it is still luxurious by comparison with most other offerings available on the market.

“Buying a Scania is as much about image as it is about reliability and robustness. All-round

service and quality is every bit a part of the Scania brand. The 620 also leads the way when it comes to sustainability, using a Euro 4 level engine to ensure a greener environment. Using selective catalyst reduction technology combined with AdBlu scrubber technology, the V8 reduces Nox by 70% while carbon is reduced by its lower fuel consumption.

Another feature that contributes to economical driving is a new innovative driver assist that guides the driver, who can compete with the computer to see how economically he is driving. Drivers that use this aid have so far recorded a further 5% fuel saving compared with other vehicles that are driven without using any com-puter guidance.

By Scania for ScaniaIt is no surprise that Scania is a stalwart of the South African highways and one of the fastest growing brands in South Africa in the fiercely contended extra heavy commercial vehicle market. Like the trucks, everything to do with Scania is owned and managed by the mother company, including the entire dealer network.

This brings about a sense of pride in the machines and the service that is seldom found elsewhere. The trucks themselves are wholly manufactured made by Scania; this means that every part works precisely in sync with each other.

“Sometimes it’s the small things that count. The sum of many parts working in unison, forms the backbone of Scania V8 vehicles – power, passion and performance,” concludes Alec.

Scania South Africa, www.scania.co.za. Star logistics, Eugan Kuppasamy, 083 440 8835

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Product shown in photograph is for illustration purposes only, and is subject to stock availability.

The right gear at the right time,every time

Professional, Passionate, Dependable24 Hour Roadside Assist 0800 008 800

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W hen “Supply Chain Today” speaks to Nico S c h e e p e r s ,

technical manager at iData Distribution, he explains some of these improvements to us. Nico’s track record in the industry has given him hands-on experience with most of the large players from a barcoding and scan-ning perspective.

Stable technology“The technology has stabi-lised to a large extent and not much appears to have moved forward dramati-

cally,” he tells us. “This doesn’t mean that things aren’t changing for the better. Usually it’s more a matter of getting users to take advantage of them more fully.

“For instance, barcoding has evolved to some degree from one-dimensional to 2D technology, which has been touted as the next big thing. But 1D is still the de facto standard in the industry because many users haven’t fully embraced the extra functionality offered by 2D. Most simply

want to scan and identify the item and 1D is fine for this.1D is also driven by industry as a way of being interoperable. The GS1 global standard is another factor for the 1D prevalence in the market.

Far-Near“Strides have been made with Far/Near scanners with new scanners being able to scan from both very near and very far with equal efficiency. Some can even scan 2D from seven metres away,” Nico continues. “Years ago everyone was using laser engines but new imagers use raw process-ing power for increased functionality in a wider range of situations.

“There are various versions of these imagers avail-able, with varying levels of speed and accuracy. Some only do 1D, but they do it very fast. New generations are more aggressive and do 1D and 2D at the same speed.”

Great stridesFunctionality has also made strides. “Many readers have the same imaging capabilities as a movie camera,” he says. “This has nice spinoff benefits. For instance, EMDI allows document scanning similar to what you’d achieve on a document scanner. Devices are so feature-rich they can do more than a Smart Phone, like your Blackberry or iPhone.

“Essentially, the guy delivering Coke has this level of sophistication at his fingertips, combined with

the advantage of rugged usability. Many of these clever scanners have high IP ratings and can be dropped from two metres, or survive 1 000 tumbles from one metre. These ratings also give assurances of operation even when exposed to dust or water ingress. Some can even operate after being submerged for an hour.

According to Nico, Smart Phone manufacturers have been trying to move into the scanning mar-ket, but with limited success. “The brands were aimed at sales reps going into supermarkets and similar applications,” he explains. “A year later, these systems were failing. They’re simply not tough enough. In the case of one Smart Phone, the back would fall off and the battery would fall out. The question then becomes of who want to maintain the devices for 3 to 8 years?

“Rugged devices are just stronger, and also have the service support to back them up. While you may be paying anything from R8k to R50k, at the top of the range you’re looking

Bar NoneSome industries are regularly in the headlines by virtue of the fact that they often experience vast

technological advances, but for the most part change comes incrementally. However, it is these small changes that add up to big improvements in the resources available.

Nico Scheepers

Rugged usability is a key feature in most environments

BARCODING, LABELLING, SCANNING & RFID

Some can even scan 2D from seven metres away

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at units that can handle forklift vibration levels while incorporating blue tooth tethers and other sophisticated funcationality.”

DC Picking upPicking has also seen improvements, with voice technology gaining more ground. “In many in-stances, companies are going all voice; they barely

even look at a barcode anymore,” Nico goes on. “A lot of retail chains have taken this route. The system allows pickers to be hands-free, while ensuring accuracy. Ease-of-use and swift training are other attractions. Pickers can be operational after 20 minutes of training.

“In many installations I see a combination of technologies, however. Receiving and put away is still done using scanners because of accuracy, while voice picking rounds the system off.”

For most systems, the race has always been on to keep the processors up to speed. This is teamed with accuracy of scan, keyboard accessibility and ease of use, along with sophistication of operating software. Nico tells us that Microsoft still rules the environment.

RFID stallIn response to our questions about RFID, Nico is stoic. “I don’t see it ever replacing barcoding,” he assures us. “It’s still too expensive to match a barcode, which comes in at less than a cent. Even the Walmart test model hasn’t taken off yet.

“RFID has, however, found a place in closed loop environments. One of the biggest success stories I’ve been aware of is with Chep’s pallet tracking, where they’re able to track pallets from DC to DC. For the most part, the technology is sucessful if it’s complementary to barcoding.

“Actually, this sort of thing probably defines the industry; finding suitable technologies that work hand-in-hand to provide the most effective system in an environment which can throw a thousand challenges into the mix on a daily basis,” he smiles.

Nico Scheepers, iData Distribution, Tel: (011) 391-3779, Fax: (011) 397-3867, Email. [email protected], www.idatadistribution.co.za

Voice picking has taken off as an accurate, hands-free option

BARCODING, LABELLING, SCANNING & RFID

The back would fall off and the battery would fall out

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It’s an intelligent small radio frequency iden-tification device (RFID) encapsulated in high density foam, hard case or silicone rubber, depending on its intended use,” he explains.

The MtrackTag can be attached to any object, such as an asset, box or pallet and read remotely to determine its identity, position or state. This can be achieved without direct line-of-sight and in environments where traditional data collection could not operate.

SA Electronic Tracking Systems supplies Mtrack-Tags, its readers and a host computer - the standard MtrackFleet web based system, accessible from anywhere in the world. There are two receiver options, namely the MtrackFleet AT5i unit for vehicles (telematic data can be accessed by the client) or the simpler MtrackFleet AT3 unit used for fixed positions such as a warehouse.

Feature-fullBidirectional communication between the trans-ceiver and the MtrackTag, allows the tag to be configurable over the air. “Tags can be rewritten and reused, significantly reducing their cost per

use and storing a history that travels with the item,” explains Deon.

The transceiver is an MtrackFleet GPS tracking device which provides all the benefits of a fleet system. “For example, this enables geofencing of the transceiver and the tags reporting to that transceiver. We can therefore activate an alarm should the tag leave the vehicle at an unauthor-ised time,” says Deon.

“The general proximity of the tags and the exact location of the transceiver is viewable on the Web-based system maps and can be viewed by the user from anywhere in the world,” he adds.

The tag can detect movement as well as tempera-ture; it warns users when a preset temperature parameter has been violated such as in refriger-ated storage conditions. It also reports remaining battery life and receivers are monitored daily.

However, there are limitations. The receiver needs to be within a kilometre radius of the tag to track it. “So if you don’t know where it is, you have

Slowly Infiltrating the Market

The MtrackTag is an innovative upgrade from barcodes and slowly making headway in the market. So says asset tracking and recovery company SA Electronic Tracking Systems MD,

Deon Bayly.

The MtrackTag can be attached to any object, such as an asset, box or pallet and read remotely to determine its identity, position or state

The MtrackTag is an intelligent small radio frequency identification device (RFID)

BARCODING, LABELLING, SCANNING & RFID

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no starting point,” he admits. Also, although it does not require line-of-sight, radio frequency is still affected by terrain. “The biggest difficulty we have is for long-range outdoor applications such as farm perimeters. Monitoring animals in a kraal is simple, but rough terrain is a challenge,” he explains.

RFID vs auto-ID“We supply both intelligent and passive RFID solutions. There is no doubt that currently the requirement is far greater for passive tags (par-ticularly in the logistics industry), but there are more and more environments and applications that are requiring active tags, as needs become more sophisticated.”

“The main obstacle to the spread of RFID gener-ally, is the success of barcodes, the ‘previous’ generation of auto-ID technology,” says Deon, adding that in most applications, reading bar-codes requires direct human intervention, a clean, high-contrast environment, and often more than one attempt.

RFID doesn’t need line-of-sight to operate; using radio means that the tag no longer has to be vis-ible on the object to which it is attached. The tag can be hidden inside the item or box that is to be identified and still be read. “This minimises or eliminates the need for a person to have to present the reader to the tag as it can now be fixed to a wall, for example,” he explains. As the item is passed by the reader it will be read automatically,

thus giving a potentially large saving in labour costs or substantial increase in throughput of scanned items.

Asked when intelligent RFID tags will catch on in the local market, Deon says passives first need to gain a big-ger foothold. “I think industries that need tags to be rewritable would be the target market for intelligent tags. It’s two-directional communication – we write information to the tags memory, unlike a normal passive tag or barcode. There is big potential for them in the monitoring of freezers and fridges to stop food spoilage as well as in asset monitoring, such as laptops and personal computers.

“Not only is the amount of data that can be stored in a barcode much smaller than in an RFID tag but it cannot be easily updated. In many applications the functional potential of RFID may not yet beat the low cost of barcodes, but it’s only a matter of time before it does,” states Deon.

In application For logistics applications, Deon suggests the tags be used in automating warehouse opera-tions, including monitoring of pallets and cases shipped into and out of distribution centres, cli-ent warehouses as well as entering and leaving trucks. “Wherever there is a transceiver, there is visibility,” he adds.

They are also useful for electronic stocktaking of items in a designated area, anti-theft/stock access control, staff and asset access control and item visibility and status - locate an asset quickly and accurately using a handheld transceiver

Deons tells us about an innovative use for the tags, still in the testing phase. “We are testing a prototype intelligent container lock that is due to go live in about six months. It could be used for example, for containers entering the country that are either travelling through, or are not to be opened until a certain point,” he explains. The tag is built into a mechanism that locks the container and triggers an alarm if the lock is tampered with. The mechanism is unlocked either remotely or automatically when it gets to the right destination,” he reveals.

Some of the company’s most recent applications for MtrackTags include implementing systems where moveable assets for hire are able to be monitored. This is mainly used for theft prevention from the hirer ’s premises; animal tagging; positioning and prevention of stock theft from kraals; and theft prevention of computers in a library.

Deon Bayly, SA Electronic Tracking Systems, Tel: (011) 616-5055, [email protected], www.mtrack.co.za

Bidirectional communication between the transceiver and the MtrackTag

The tags use two-directional communication and information is written to their memory

BARCODING, LABELLING, SCANNING & RFID

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T here has been a swing over the last year towards renting, particularly as companies do not wish to outlay large capital amounts – especially when they have projects that

have an uncertain lifespan.

“We almost have an equal split between long- (45%) and short-term (55%) rentals. Long-term contracts go up to 60 months, and regular short-term customers rent for a few days each month or even for a few months at a time. Then, there are a number of ad-hoc casual/short-term rentals. Our seasonal customers usually take long-term contracts and then add short-term equipment as required,” Mark elaborates.

The ability to remain flexible when renting rather than purchasing, is joined by the fact that a re-placement unit is supplied promptly, should the unit go down (unless it is a specialised unit). Renting eliminates the need for technical staff to support owned units which can be quite costly. There are also financial benefits for clients, such as utilising capital in their goods and services where they derive income, as opposed to tying it up in expensive equipment.”

Far-reaching effectsToward the end of last year the industry was still feeling the effects of the tsunami in Japan. Production lines were slower in sending out

units because parts supply was dicey. As such, some manufacturers were encountering delays in delivery of up to four months.

The increased delivery timeframe meant that existing units were snapped up and slowed new request deliveries. Mark estimates that these effects will continue to mid 2012.

Another challenge facing the industry is the local skills shortage and limited training programmes. Mark adds that this is compounded by individuals being recruited for other industries.

New additions“We have increased our company size in terms of fleet, personnel and premises which, in the current economic climate, bodes well. Knowing that you have strong backing to give the business the support required, means you can concentrate on making it a success,” he states.

The company has also expanded to add other divisions, one of which is the logistics division. Avis now also has sidelifter/container lift vehicles and additional trucks, such as the Superlink which allows movement of 6m- or 12m-containers and break bulk around Johannesburg as well as nationally.

“Our next project is to reduce the carbon footprint of our business and that of our customers. We’ve made a start by utilising more biodegradable, less-toxic chemicals, as well as recycling them,” reveals Mark.

Fabulously Flexible Just how is the rocky economic climate affecting the forklift industry? For one, according to Avis

Rent-A-Forklit’s Mark Rose, more companies are choosing to rent, rather than buy forklifts.

There has been a swing over the last year towards renting

FORKLIFTS

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Well-roundedAvis offers a holistic approach to customers, ie, from loading and moving pallets in a warehouse

Toward the end of last year the industry was still feeling the effects of the tsunami in Japan

using various items of equipment such as pallet jacks and narrow aisle electric forklifts, to load-ing containers with the goods such as standard diesel forklifts, to transporting the containers for shipment around the country.

“Our company, which has been in business for over 40 years, offers a wide range of forklifts from different manufacturers, although we do have a few preferred suppliers. This differentiates us from competitors and allows us to make offers that suit the budget and requirements of each business, as well as combined package deals (if needed), ensuring competitive pricing. Having customers renew their contracts with us, some being for up to 20 years, brings a smile and as-surance that we are doing it right,” says Mike.

“Building personal relationships with our cus-tomers, so that they are not just a number, is an ongoing process,” he adds.

Forklift attachments are sourced locally and the local supplier caters to almost any request, mak-ing for a winning partnership. “We are exploring opportunities to further support the local industry. As they say, ‘local is lekker ’, he concludes.

Avis Forklift Tel: (011) 397-1784, [email protected], www.avisforklift.co.za

FORKLIFTS

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Proper Battery Care and Maintenance

Many customers are either new to electric lifts, have never been provided with documentation, or have never had the opportunity to have their questions answered.

An informed customer is the best customer. GB International Battery shares its recommendations.

Charging:• Undernormalcircumstances,werecommendcharging when a battery reaches 80% depth of discharge (near the “red zone” on most discharge meters), not before.

• Most new batteries provide 1 500 charge“cycles” or more by design. If your application is light-to medium-duty, or sporadic, charge only when necessary rather than daily. It will spread the cycle life of the battery over a much longer period of time, and ensure you get the maximum number of productive years from your investment.

• Select “weekend”, “equalize” or “weekly”charge (depending on your brand of charger) approximately every 5 to 10 cycles to keep the battery performing at peak efficiency. Failure to do so or selecting this option too often will harm the battery and shorten its effective life.

Watering:• Newbatteriesrequirewaterapproximatelyevery10 charges for the first few years. Reconditioned batteries may require water every 5 charges.

• Onbothnewandreconditionedbatteries,werecommend you check 2 or 3 pilot cells every 5 charges to see that the water level is just above the red perforated plastic element protector after charge (color varies depending on brand).

• If low, add only enoughwater to cover theelement protector by approximately ¼”. The ad-ditional space is necessary for expansion while gassing at the end of charge.

Cleaning:• Ifabatteryeveroverflows,takeafewminutesto rinse it with water immediately afterwards (baking soda optional) to prevent corrosion on top of and beneath the battery. Use enough water to thoroughly dilute the spilled acid to the extent that it is not harmful to the environment.

• Thespilledacidisbothhighlyconductiveandcorrosive. If not rinsed away, the conductivity can cause the battery to discharge itself, even while it is not in use, and generate addition heat during recharge.

• Overtime,acidleftontopofthebatterywillform clumps of conductive white corrosion. If it is allowed to accumulate, it can dramatically shorten the life of the battery and make checking and adding water an unpleasant experience which

employees will tend to avoid, as well as cause obvious safety concerns.

• Acidvaporsescapeduringcharge,and residue will develop around the vent cap area even under normal circumstances. We recommend that batteries be rinsed every spring and fall (or as needed), to remove the acid residue from the battery.

Never:• Never over-fill. It will causeoverflow on the next charge. Acid loss

FORKLIFTS

New batteries require water approximately every 10 charges for the first few years

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shortens run time, generates more heat, and requires shop service to correct.

• Nevermakeahabitofgivingshortchargesduring lunch or break time. Each short charge constitutes a “cycle” and over time will sig-nificantly affect the performance and life of the battery. It also causes excess heat that will make the battery less efficient than not charging at all. It’s better to let a battery rest and cool during lunch or breaks.

• Neverinterruptachargecycleifitisavoid-able. It is recommended that once a charge cycle is initiated, it be allowed complete.

• Neverallowabatterytositdischargedformore than a few days to avoid “sulfation”. If it becomes necessary to store a battery for any period of time, charge it prior, and once every 3 to 6 months thereafter to avoid damage.

• Never allow a battery to go completelydead (unusable). It will take over 72 hours of continuous charging to bring back to full charge, and may require shop service to restore full charge.

• Nevercontinuetouseanoverheatingbat-tery. If a battery ever radiates excessive heat during use or charging or emits a strong sulfur smell, discontinue use and call for service. You have a battery, charger or lift problem.

• Neverallowsparksorflamenearachargingbattery. Batteries produce explosive hydrogen gas while charging, which could cause an explosion resulting in injury or death.

Never over-discharge a battery:• Deepdischargingwillharmthebatteryandcause all of the forklift’s electrical components to run excessively hot. Significant lift truck damage can result, including complete motor failure, burned armatures and brushes, and burned or stuck contacts, which can quickly render the truck unsafe and unusable.

• Deepdischargingcaneasilyincreasetherecharge time outside your charger ’s range to recover, causing the battery to be only partially charged for the next day.

• Most automatic chargers must sense aminimum battery voltage to activate and turn on. If the battery is below the threshold voltage, you will not be able to recharge the battery and may require a service call to manually start the charger.

• If you don’t have a working dischargeindicator, we recommend installing at least a simple “passive” discharge indicator.

Acknowledgement to: www.giantbatteryco.com

FORKLIFTS

Never interrupt a charge cycle if it is avoidable

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M ost truck manufacturers have intro-duced vehicles with extremely fuel efficient turbo-diesel engines and low emission exhaust systems, transmis-

sions that automatically select the most efficient gear ratio for the road gradient, and computer systems that ‘tell’ the driver when to shift gear and rate his driving performance on a graphic screen display.

Many of today’s trucks put most cars to shame in terms of fuel efficiency and exhaust emissions. A few manufacturers like Hino and Volvo have already introduced hybrid diesel / electric trucks to the market.

Enviro-transportEnviro-friendly technology extends to all as-pects of road transport. Trailer and truck body manufacturers design efficient load distribution ergonomics into these important components; and most transport operators use computerised fleet management systems to track their fleet vehicles and optimise distance-fuel-time-cost factors for least waste and maximum profitability.

“Today’s trucks can be as eco-friendly as today’s

cars,” says Sharmini Naidoo, CEO of the Road Freight Association, an organisation representing over 58% of road freight operator companies in South Africa. Although there are no options cur-rently available to the trucking industry to reduce carbon dioxide emissions in diesel-operated trucks, emissions can be reduced through the efficient use of fuel. By managing fuel consumption, which is a prerogative of every trucking business (fuel amounts to 34% of a transporter ’s cost), less carbon is emitted.

Many of the truck manufacturers offer eco-driving courses to their customers, where drivers are trained to drive with maximum safety and fuel economy in mind. Many trucking companies also have their own training centres and utilise fleet management systems to optimise fuel efficiency, thereby reducing emissions.

Recognition“The road freight industry is also a leader in ‘green’ initiatives,” adds Sharmini. “Some of our members have implemented impressive green projects, with equally impressive, award-winning results.”

Barloworld - a ‘Green Pioneer’Barloworld has been a pioneer of greening initia-tives, long before it became a business impera-tive. As part of its centennial year celebrations in 2003, the company planted 23 000 trees, one

‘Smoke belching juggernauts’ and ‘rust buckets hogging the road’ is probably what comes to mind when the average person thinks about a truck. The trucking industry has often been accused of harming the

environment and damaging road infrastructure. But many people don’t realise that today’s modern truck engines and transmissions are extremely sophisticated and increasingly enviro-friendly.

Barloworld Logistics’ award-winning Green Trailer

RFA

Definitely Doing Something

Many of today’s trucks put most cars to shame in terms of fuel efficiency and exhaust emissions

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16 Supply Chain Today April 2012

RFA

in celebration of each of its employees nationwide at the time. Since then, Barloworld has continued to work with Food & Trees for Africa on plantings each year.

Combining environmental sustainability with lean process thinking, Barloworld Logistics developed a ‘green’ interlink taut-liner-trailer combination which helps achieve significant reductions in fuel consumption.

In a pilot project, the rig travelled 100 000kms in six months and reduced fuel consumption by 10,6% compared with the rest of the fleet running the same route with the same payload. The actual cost saving was R8 500 per month just on fuel, for one rig. The Green Trailer conversion reduced total wind drag by up to 43%. The other major benefit of reduced fuel consumption is reduced carbon emissions. The 10.6% fuel saving equated to a massive 13.77 ton reduction of CO2 emissions during the test period.

Accolades for Imperial LogisticsImperial’s greener logistics strategy involves all facets of the operation including vehicles, drivers and systems. It embraces any new technologies to achieve green targets, including using Euro 5 specification vehicles. Other innovations include large photovoltaic solar power installations, waste water management and recycling, extra distance analysis combined with redesigned routes to cut carbon emissions and travel cost simultaneously. The company also invested in zero emission, silent refrigeration systems and advanced fuel management systems to optimise the more than 200 million litres of diesel fuel consumed annually.

Eco initiatives at Super GroupSupply chain management specialist Super Group implemented several projects to help green its supply chain. These include recycling wash bay water in all freight operations, as well as car-

DHL Supply Chain’s newly-launched carbon emission saving superlink teardrop trailer

The rig travelled 100 000kms in six months and reduced fuel consumption by 10,6%

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Supply Chain Today April 2012 17

LIGHTING

bon footprint monitoring across its fleet to prevent abnormal emissions and consumption patterns. It is also testing two addi-tive technologies aimed at reducing carbon emission and fuel consumption in its South African and Zimbabwe fleets.

Cleaner alternatives for Unitrans Supply Chain SolutionsUnitrans Supply Chain Solutions, in partnership with Mercedes-Benz Com-mercial Vehicles and Sasol Oil, recently launched a joint pilot project to use liquid petroleum gas (LPG) as a cleaner alternative fuel to diesel. A Mercedes-Benz Actros truck-tractor with a gas injection system can run on a mixture of up to 40% LPG and 60% diesel. LPG is a clean burning fuel with very low emissions.

DHL launches superlink teardrop trailer DHL Supply Chain launched their first carbon emission saving superlink teardrop trailer in South Africa in November last year. Expected to save amply in fuel usage with its aerodynamic design, the superlink teardrop consists of a combination of two trailers of 7m and 11m each; a pioneering design that’s already in operation between the Netherlands and Germany, and in the UK, but only in the form of a single 15m trailer. In mainland Europe, the trailers are expected to save up to 10% in fuel usage and up to 25 tons of CO2.”

Auto CommoditiesThree years ago, automotive fuels and lubricants marketer and distributor Auto Commodities

RFA

It’s a misnomer that the road freight industry is “doing nothing” about reducing emissions

Unitrans Supply Chain Solutions is part of a pilot project to use liquid petroleum gas (LPG) as a cleaner alternative fuel to diesel

started planting indigenous trees from seedlings. It has now planted over 90 000 trees up to 3m in height. Every year this number increases by a staggering 30 000.

So it’s a misnomer that the road freight industry is “doing nothing” about reducing emissions. The RFA is fully in support of a greener environment and a viable green economy and this year will see the RFA rolling out numerous green projects as part of its contribution to Working Together and Saving Tomorrow Today.

Catherine Larkin, The Road Freight Association (RFA), Tel: (011) 789-7327, Fax: (011) 787-7865, Email: [email protected], www.rfa.co.za

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18 Supply Chain Today April 2012

MARKET FORUM

Linde Forklifts recently de-livered 6 x T20SP Electric Pallet Trucks to the Adcock Ingram plant in Aeroton where there are already around 15 of these types of units in operation. The recent order was for seven trucks with a further six to be delivered to their sterili-sation department.

Adcock also make use of the E16C/K10 units at their Clayville facility.

During the routine ware-house workday, many ac-tions are repeated hundreds of times over. The Linde Electric Pallet Range of Trucks optimises every one

of them, with the goal of making work easier, more economical and more productive.

Features include an ideal 45˚driving position; a totaldrive system, electronically controlled; a Linde e-driver with ergonomic control, asymmetrical design and control integration; a workstation with multifunc-tion display and storage com-partments; power steering for comfort and safety; an AC motor with no rollback on uphill start-ing; and CAN bus connectivity with easy diagnosis.

Linde Material Handling, Linki de Jongh-Brown, Tel: (011) 723-7000,www.linde-mh.co.za

Efficient Electric Pallet Trucks

An increasing number of retail opera-tions in South Africa are improving their cleaning efficiency while reduc-ing their overhead cleaning costs and environmental footprint. This is through making use of an innovative range of HTC floor grinding and polishing ma-chinery and Twister floor pads, which are coated with billions of microscopic diamonds.

The HTC Twister range of floor pads, which come in sizes ranging from 4-28 inches, can be fitted to any mechani-cal floor cleaning machine to provide a sparkling clean finish to any dull or worn floor surface, without the use of harsh chemicals in daily cleaning.

HTC Twister specialist Fredrik Toftemo

Twisting Floor Cleaning Trends

says, “When using Twister, the user simply needs to sweep the floor to remove debris, select the appropriate Twister pad, add water and start the machine to achieve a perfect finish.

Twister reduces chemical usage in daily floor maintenance applications by up to 100 %, and reduces waste materi-als by up to 99 %; thereby saving on overall costs, time and environmental

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Supply Chain Today April 2012 19

MARKET FORUM

The KZN branch of Gos-cor Lift Truck Company (GLTC) continues to perform beyond expec-tation.

Recently Freightmax took delivery of 17 Doo-san diesel forklifts with specially fitted paper clamp attachments for handling paper products. “One of our strengths is tailoring our machines for specific applica-tions,” says GLTC branch manager Michael Keats.

Meanwhile, the latest delivery to TFD for both their Beacon Sweets distribu-tion centre in Jacobs and their main multi-principal distribution centre site in Mount Edgecombe was 34 units, which included the full spectrum of the Goscor Lift Truck product offering.

TFD’s Coastal GM, Kieth Doyle, says that changing to Goscor has been a

positive experience. “We don’t change our suppliers on a whim,” he says. “We work hard to build and maintain relation-ships. But it was obvi-ously time to make the move to Goscor and I’m pleased we did. They have an excellent product, their service matches and we have a strong and produc-tive relationship with them.”

GLTC is the sole distributor in South Africa of the Crown, Doosan and Bendi brands, besides others. GLTC’s most recent initiative is Bendi, a revolutionary counterbalanced, articulating forklift, which can work in very narrow spaces.

GLTC, Michael Keats, Tel: 082 494 775 Email: [email protected] www.goscor.co.za

At the Freightmax handover, (left to right): Shaun Barker (operations director, Freightmax), Glenn Adriaanse (GM, Sappi), Brian Giddy (MD, Freight-max), Neil Wilson (CEO, Goscor Group), Sarel Els (GM operations, Freightmax), Michael Burns (area sales manager, Goscor)

impact.” The Twister range also provides a far more hygienic clean, compared with manual labour. “Twister can give any dull and worn surface a hygienically-clean, glossy and brightly-polished finish, and can be used on most common floor surfaces, such as terrazzo, ceramic tiles, linoleum, vinyl, plastic, natural stone and concrete.”

PMSA sales and marketing manager Quintin Booysen notes that the HTC range of products perfectly comple-ments the company’s vision to become recognised as the preferred supplier of concrete equipment and technology to all international developing markets.

“PMSA is committed to supplying the market with all the latest advance-ments in concrete applications, and HTC fits in perfectly for concrete floor preparation, grinding, polishing and floor maintenance,” he notes.

PMSA Quintin Booysen Tel: 086 100 7672 Email: [email protected] Web: www.pmsa.com

High Praise for Company

Michael Keats

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20 Supply Chain Today April 2012

With the Artix® articulated forklift, pallets can be managed in aisles as narrow as 1.5m – allowing you to up overall storage capacity. It also lifts up to 2.5t to heights of 12.5m, and packs pallets at double-depth with extendible forks.

• Front and all-wheel drive • Indoor and outdoor operation• Deep-cycle batteries for all day use• Advanced stability and cushioned tyres• Integrated high defi nition LCD CCTV for advanced visibility• Operators are trained in driving and forklift maintenance

Let the Artix® elevate your bottom line, contact us now!

Open your warehouse to narrow aisles

0861 61 61 61 • www.apcstoragesolutions.co.za

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Supply Chain Today April 2012 21

MARKET FORUM

With three different model sizes avail-able, the multi-functional Hyundai Toolmaster, exclusively available in the local market through HPE Africa, has been designed for use in numer-ous applications, thanks to a unique and innovative design that makes it adaptable to a number of different applications.

HPE Africa national service manager Hein Stander points out that the Toolmaster ’s unique high-rigidity or ‘H-frame’ enables the vehicle to be fully-compatible with various attach-

ments, which include; forklifts, dozer blades, grapples, tyre changers and pushers.

“The H-Frame is designed for work in the toughest applications and, together with the reinforced loader linkage, is able to resist loading stress and shock. What’s more, the H-Frame comes standard with a coupling system that enables it to lift the various attach-ments,” he explains.

Hein highlights the fact that the Toolmaster has to date been used predominantly in forestry and bulk cargo applications in South Africa. “Due to its central point of gravity, the Toolmaster is able to lift between six and nine tons, depending on the model, while making a full turn,” he continues. “What’s more, the Toolmaster comes standard with a powerful Cum-mins engine. Its excellent combustion efficiency provides maximum power with low fuel consumption, even in unfavourable outdoor conditions.”

HPE Africa Kirsty Denholm Tel: (011) 397 4670, [email protected] www.hpeafrica.co.za

Toolmaster of the TradeThe line-up of sector high speed roll-up doors manufactured by Apex Strip Curtains delivers both functionality and performance. These doors are compact enough to cope with the intensive demands of heavy and continuous traffic and feature an integral design in which the actuator, controls, safety devices and balancing systems are built into one unit. Sector doors are structurally flexible, with transparent or coloured interchangeable panels.

The company’s range of Traffic high speed folding doors, in sizes up to 8000 mm wide by 8500 mm high, offer a sturdy, dependable and modular solution for medium and large entrances, particularly where windy conditions are a factor, such

Increasing demand for high speed doors

as shipment and warehouse areas. Made from strong self-extinguishing Class 2 fabric with excellent thermal insulation properties, this door has been designed to resist a wind load-ing of up to 50 km per hour. The supporting structure is manufactured from high quality galvanised steel to ensure optimum durability and, if the application requires it, vision windows can be incorporated in the panels.

A counterweighted balancing system ensures high standards of performance and safety and fast, semi-automatic reopening. The built-in automation unit protects the components from wear caused by the elements.

All high speed doors in the Traffic range are controlled by an electronic unit that complies with all IEC regula-tions. It can be activated by any type of remote control equipment including photocells, pressure sensitive mats, movement detectors or induction loops.

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

With the Artix® articulated forklift, pallets can be managed in aisles as narrow as 1.5m – allowing you to up overall storage capacity. It also lifts up to 2.5t to heights of 12.5m, and packs pallets at double-depth with extendible forks.

• Front and all-wheel drive • Indoor and outdoor operation• Deep-cycle batteries for all day use• Advanced stability and cushioned tyres• Integrated high defi nition LCD CCTV for advanced visibility• Operators are trained in driving and forklift maintenance

Let the Artix® elevate your bottom line, contact us now!

Open your warehouse to narrow aisles

0861 61 61 61 • www.apcstoragesolutions.co.za

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22 Supply Chain Today April 2012

B ut, all that is about to change as founder and CEO, Steven Gottschalk, positions the Value Group of companies for a new era of growth, while setting aside the

companies’ quiet diplomacy for a more vocal role as a market leader in the provision of logistics services.

“Now that we have achieved a level where we have the infrastructure, systems, processes and

people in place to offer a truly world-class service, we plan to step up our presence.

Customer serviceSteven goes on to explain that the business was founded and built on the principle of providing customers with exceptional service and forging long-lasting relationships based on trust. This enabled the company to grow from its humble beginning as a truck rental company to a diversi-fied logistics giant.

It has more than kept pace with modern supply chain requirements for seamless logistics services in order for suppliers to operate effectively and to maintain an edge over their opposition. These ever stricter requirements are matched by Value’s continuous training and recruitment of skills to perform to the levels required by its clients.

In addition, at the heart of the operations lies highly sophisticated and state-of-the-art com-munications and IT systems that ensure logistics flows are uninterrupted and carried out according to company processes and customer requirements. The systems provide the necessary communica-

THIRD PARTY LOGISTICS

Having toured some of Value Logistics’ giant facilities in and around the Gauteng area, it’s hard to believe that the company has managed to keep such a low profile

while going about building an enormous empire.

We will show the rest of the market what a formidable offering we have and the kind of service they can expect when dealing with Value Group

Leading the Logistics Fight

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Supply Chain Today April 2012 23

Companies within the Value Group

• Value Logistics – provides supply chainsolutions for many of South Africa’s leading brands.• Freightpak-integratedlogisticsandsupplychain service provider for speciality chemicals.• ValueSpecialisedLogistics–transportationof abnormal loads• Value Express –time sensitivemovementof freight through door-to-door, on demand delivery and collection.• Value TruckRental – all truck rental op-tions from 1-tonners to 32-ton truck tractors including rental of complete film fleet vehicles for movie productions• ValueClearingandForwarding-aninter-national network of agents able to move any cargo from door-to-door anywhere in the world, by air, sea or road. • ValueMaterialsHandling–soledistributorof Komatsu forklifts. Maintenance and a full range of spare parts are available to supply and support other leading brands of forklift and warehousing equipment.• Value Container Storage – based in PortElizabeth and Gauteng the facilities provide full and empty container storage and a haul-ing service to and from ports and container terminals.

tion across the entire logistics chain from customer to depot and driver.

At the business-end - where the rubber meets the tarmac - the group’s fleets are maintained to pristine condition through internal Nissan approved workshops to ensure the overall reliability of the service.

Keeping promisesWhile it’s been no secret that Value Logis-tics is a major player in the supply chain industry, the massive scale of the operation is unexpected. The reason is simple; man-agement have favoured a low-key approach to sales and marketing, choosing rather to prove their worth and gain customers by word-of-mouth.

In fact, despite the size and scope of the operation, it has taken Steven and the rest of the board until now to proclaim that their operation is of an international standard comparable with the very best service providers in the world.

“For us it’s a matter of providing customers with the best, honest service. We’re not in the business of making promises we cannot keep. Today, with the right product and ser-vice mix that meets all the requirements of global suppliers we can loudly proclaim ourselves

THIRD PARTY LOGISTICS

globally competitive and a leader in our field in southern Africa.”

Rising starThe Value Group started out as a truck rental company in 1981 and grew steadily in size and status while operating an increasingly large fleet of vehicles. The company later diversified into logistics and by 1999 began expanding its footprint further into more specialised fields with the purchase of chemical logistics specialist, Freightpak.

This was followed by the acquisition of Rent-a-Bakkie the following year and during 2001 Fleetrent and Fridge Fleet were acquired.

More recently, in 2011 the group was nominated as a Top 100 JSE listed company in the annual Sunday Times survey. Its footprint continues to grow and at the moment stands on 4 650 ve-hicles with warehouses and depots nationwide, as well as transport services across the border in neighbouring countries. Its staff complement stands at approximately 6 725 people with rev-enue approaching the R1.6-billion mark in 2011.

Value Logistics, Tracey Le Roux, Value Logistics Group, Tel: (011) 929 6400, Email: [email protected], Web: www.value.co.za

The group’s fleets are maintained to pristine condition through internal Nissan approved workshops to ensure the overall reliability of the service

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24 Supply Chain Today April 2012

Navigating toward a brighter horizon, the turtle hatchling starts his journey towards an ocean full of potential. The 34th annual SAPICS conference and exhibition will provide supply chain professionals with the opportunity to explore resources relevant to the supply chain profession and benefit from valuable networking opportunities. Together with local and international supply chain experts sharing knowledge and experiences we will continue our journey towards releasing the potential of Africa!

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Supply Chain Today April 2012 25

How did this happen? Firstly, much like the IT industry, supply chain is a rapidly developing business, and universities simply don’t have

the resources to keep up with what is hap-pening in industry. Coupled with this rapid change in technology and process, there is an extreme shortage of skilled manage-ment. There are thus ample employment opportunities for university graduates (es-pecially engineering graduates), at salaries massively higher than what can be paid by the universities.

Take home payThe average take home pay for junior lecturers in South Africa is in the order of R7,500 pm. A lecturer, on average, receives RI0,190 a month, up to a maximum of R16,503 pm. A senior lecturer starts at R12,254 reaching R21,120 at the top of the scale. The average pay of professors in South Africa varies between R20,000 pm to R30,000 pm (reference http://www.solidaritysa.co.za/Home/wmview.php?ArtID=394). While Engineering lectur-ers may have these salaries supplemented, overall remuneration is substantially below that earned in industry.

At these salaries, “best minds” either have to be extremely dedicated, or spend most of their lives consulting (or have a second job). Certainly they can easily triple their salaries in industry.

IncestuousIndustry has thus drained many of the best academic minds out of the universi-ties. Many of those who stay behind, are so poorly paid that their life’s focus is on supplementing their income, and not on keeping up to date with industry’s needs. In some cases, we have therefore created

an environment, where mediocrity prevails. The teaching can easily become incestuous, where academics who have no modern industry exposure (no matter what their qualification) teach students, who in turn graduate, and teach the new crop of students. Teaching often thus tends to be out of a convenient text book and is not necessarily related to what industry needs.

In December I visited a few countries in Europe who have come up with some very simple solu-tions to this problem. They were faced with the same crisis. An environment, where industry was unhappy with what they were teaching, and a realisation that it was inevitable that their best minds would be pinched by an insatiable need for skills in a rapidly changing industry. How could they solve the problem?

Several of the universities have solved the prob-lem as follows:

• First they created a separate entity with an organising secretary in charge – outside the normal teaching structure (an “industry liaison centre”)

• They then went out to industry and found sev-eral “leading lights” in the industry – generally senior directors of companies – and typically in the 50 to 65 age group

• These “leading lights” were selected firstly on their knowledge and experience and then on academic background.

• They then formally organised programmes us-ing these leading professionals as core inputs – using their expertise on a regular basis (say two to three lectures a week)

• These inputs were done on a highly structured basis (not random lectures)

Huge benefitsThe universities thus used their ultimate lever-age - providing a status for these successful businessmen. By creating “Associate / Honorary Professorships” for leaders in the industry, they harvested the best minds, with the most experi-

In some cases, we have therefore created an environment, where mediocrity prevails

A Solution to the Education Problem in SA

Martin Bailey

TERTIARY EDUCATION

As you know I have often complained about the quality of tertiary education in supply chain and logistics in South Africa. While there are a few islands of excellence, and the quality of students is getting better and

better (as population grows and competition increases), many of the supply chain education programmes are outdated, not relevant and do not prepare students adequately for South Africa’s business needs.

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26 Supply Chain Today April 2012

ence, at nominal cost, and created huge benefits for their students (and staff who are exposed to a “whole new world”).

I met with one grey haired gentleman who heads up one of Europe’s largest consulting groups. When he told me about an arrangement where he lectured at a leading British University, he visibly puffed up and proudly produced his university business card. One of his staff told me he never missed his regular day at the university, and he

He visibly puffed up and proudly produced his university business card

TERTIARY EDUCATION

regularly uses substantial company resources to help prepare world class presentations.

StatusBut - wait – this is nothing new. In the medical profession, almost all the lecturers have main jobs that include paid patient consulting. They start out as general practitioners, specialise, and when they become “leading lights” they go back to university on a part time basis to share their knowledge. Most of these lecturers earn their “real money” from their medical consulting, not from the university. So why are we in the

engineering and supply chain business different? Why do we retreat into an academic shell? Just think of the opportunities for universities that can change the way they do business.

So we now have a simple process that will provide best possible expertise for universities providing courses in supply chain and logistics. A simple method using the university’s status, coupled with the best expertise in the country – at a very low cost. It seems like a win-win concept.

Tel: (011) 656-1100, Fax: (011) 656-2642, Email: [email protected], [email protected], www.ils.co.za

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A company that specialises in projects such as feasi-bility studies to determine uncertainties such as this

is Aurecon. “With extensive experi-ence in the mining and resources market, including bulk materials handling, we specialise in assisting

clients globally to create cost-effective, efficient and safe mining resources infrastructure,” Bernard Van Biljon of Aurecon tells “Supply Chain Today”.

Hand-in-hand“As an engineering, management and specialist technical services group, we utilise cross-sector skills to deliver a comprehensive range of project

services to our clients. From feasibility studies and planning to infrastructure design and project delivery, our technical specialists are committed to working hand-in-hand with clients to add value to their operations.”

A high rate of infrastructure investment and the rapid rate of economic change and reform that is now endemic to many African countries, means there is renewed interest, especially the mining sector, which demands a multitude of skilled planning disciplines for the development of im-proved freight movement and logistics operations.

Expertise and regional knowledge“Transportation logistics and transportation costs play a significant role in the feasibility and sustainability of any mining venture in Africa,” believes Bernard. “However, there are many uncertainties and misconceptions regarding the state of infrastructure in Sub-Saharan Africa. It

Mines are often established in very remote areas where there isn’t necessraily much of an infrastructure. The feasibility of starting a sustainable mine is

therefore largely dependent on logistics, not only to get people and supplies to the mine, but also to get product out of the area.

Creating Infrastructure

Bernard Van Biljon of Aurecon

Create cost-effective, efficient and safe mining resources infrastructure

Fig 1. The pre-feasibility stage is the second phase in the Mongbwalu transport logistics project life cycle. A typical project lifecycle is characterised by the following stages:

TRUCKING

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28 Supply Chain Today April 2012

is important to minimise speculative assumptions at the early stages when appraising the feasibility and logistics of a mining venture.”

“Developing bankable feasibility based on relatively robust early appraisals can be a costly exercise,” he adds. “Having access to the correct mix of expertise and regional knowledge for the develop-ment of pre-feasibility plans is key to achieving successful outcomes.”

Case study: Mongbwalu Project in the Democratic Republic of Congo (DRC)Encompassing transport modes, routes and lo-gistics, AngloGold Ashanti appointed Aurecon to develop a transportation pre-feasibility study for the establishment of an underground goldmine in Mongbwalu in the north eastern part of the DRC.

The focus of the Mongbwalu transportation pre-feasibility study was to investigate various options for the transportation of equipment, supplies and people for the establishment and operational stages of the planned mine, requiring extensive investigation into predicted transportation and logistics costs; availability of suitable infrastruc-

Minimise speculative assumptions at the early stages when appraising the feasibility

ture; transportation infrastructure construction, maintenance and upgrading costs; existing local and regional transportation planning; and existing transportation operational costs.

Determining ‘what’ and ‘how’“During the different stages of the mining cycle, there are different transportation needs. What had to be determined was firstly, ‘what’ needs to be transported, employees, equipment, supplies, product etc) and secondly, ‘how’ to transport the different goods and persons,” explains Bernard.

A multi-disciplinarily team with expert knowledge of transportation logistics, transportation eco-nomics, transportation planning, transportation costs and the transport environment in Africa collaborated on finding an optimal solution for AngloGold Ashanti. All modes of transport had to be considered, including road, rail, road, air and water transport, as well as dozens of combina-tion of these modes. “Options tested ranged from flying in all freight to a newly-established airfield at Mongbwalu to trucking everything by road all the way from South Africa,” explains Bernard. “The routing options presented numerous chal-lenges mainly due to the high number of possible options and combinations of options that had to be refined to a short-list of low risk, low cost,

TRUCKING

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Supply Chain Today April 2012 29

Fig 2.Typical route options for the Mongbwalu mine

TRUCKING

reliable and sustainable options.”

Determining the best solution Operational costs were determined for each route, while some route options required further investigation in terms of the investment needed in order for the route to be viable all the way to the mining site. “The operational cost, capital layout, maintenance cost, transportation time, number of border crossings, number of required mode changes and a subjective assessment of risk were all used to arrive at an initial list of twenty-five options, which was later reduced to six feasible options,” explains Bernard.

Once these options were in place, the findings had to be refined through on-site investigations by appropriate experts. In addition to considering different transportation options, the design of the actual transportation vehicles as well as the necessary packaging required careful specification.

Feasible, affordable and sustainable options“The result was a set of transportation options which are feasible, affordable and sustainable,” says Bernard. “What this study demonstrates is the importance of thorough foundational plan-

ning. Conducting a thorough transportation pre-feasibility study will have a direct impact on mine productivity, reduced operating costs, improved product quality and sale value, and the removal of limiting bottlenecks.”

Whether rail, truck, air, ship, road haul, or barging, Aurecon can assist clients in designing the optimum transportation and corresponding handling process for increasing capacity and reducing costs, saving client time, money and effort on the road to efficient operation.

Jody Boshoff, Aurecon, Tel: (012) 427-2066, Email: [email protected]

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30 Supply Chain Today April 2012

EQSTRA INDUSTRIAL EQUIPMENT is the Partner of Choice (employer, supplier, investor) in distribution, rental & value-added services in the Industrial, Material Handling and Agricultural Equipment market; offering a total solution, providing best-in-class brands and delivering optimal life-time value for our customers.

Toyota Forklift is the global market leader in materials handling equipment with a reputation for safety & efficiency, innovative research & development and quality products…

AND helping you reach new heights

Raising the standaRds as market leaders since 1984

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Page 31: Supply Chain Apr12

Supply Chain Today April 2012 31

The company is actively pursuing local partners to distribute its commercial vehicle ranges, which utilise Cummins engines and ZF gearboxes and adhere to

high standards of quality control. In 2010, JAC Motors was the only Chinese light commercial vehicle manufacturer to receive the “China Qual-ity Award”, but was also the first manufacturer to receive exemption from export inspection by the General Administration of Quality Supervi-sion, Inspection and Quarantine of the People’s Republic of China.

Commercial vehicle ranges include a number of

notable features in the areas of manoeuvrability, reliability, power and safety.

ManoeuvrabilityLight commercial ranges come complete with a power steering system based on recirculating ball steering, with hydraulic power assistance to reduce effort required for both parking and driv-ing. A short throw gear shift and international gear positions optimise shift times and allow more efficient gear changes.

With world-class steering, clutch and transmis-sion technology, their commercial vehicles can attain a level of control normally only achieved in sedans.

ReliabilityCommercial vehicles are reinforced by an ED paint frame: a box-type cross-sectional and ladder-type section structure riveted chassis, with a 50-year life expectancy. All vehicles are also treated with anti-corrosion paint work.

The company’s two overseas centres located in Turin, Italy and Tokyo, Japan also guarantee cutting-edge technology in its products. Moreover, JAC Motors makes use of automatic truck pro-duction lines and quality management processes gained from 40 years’ chassis production and world-class frame manufacturing.

PowerEquipped with diesel engines that have integrated intake, fuel, electric control, combustion optimisa-tion, filtration and post-processing techniques, JAC Motors’ commercial vehicles achieve 32.9kW/L. The ranges are capable of meeting the challenges from adverse road conditions, while maintain-ing a level of fuel consumption that is 8% more efficient than other engines of the same class.

SafetyVehicles are fitted with power-assisted brakes that keep brake balance even during difficult weather conditions, and come with ABS, vacuum tyres and engine exhaust brake assist.

The company has remained the number one light

New on the SceneJAC Motors, based in China will be bringing its light, medium and heavy commercial vehicle ranges to South

Africa in 2012.

TRUCKING

The company has remained the number one light commercial vehicle exporter in China for 11 consecutive year

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32 Supply Chain Today April 2012

commercial vehicle exporter in China for 11 consecutive years, exporting to over 100 countries, and continues to pursue excellence in its field.

Anhui Jianghuai Automobile Co., (known world-wide simply as JAC) was created in 1964, and has been listed on the Shanghai stock exchange

TRUCKING

since 2001. JAC Motors classes itself among the 10 best automotive manufacturers in China. It produces a vast range of products including light, medium and heavy commercial vehicles, mini-vans, SUVs, sedans, buses, bus chassis, motors, gearboxes and other key automobile components.

JAC Motors, Email: [email protected], www.jacen.jac.com.cn

Among the 10 best automotive manufacturers in China

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Supply Chain Today April 2012 33

O perating profit rose 43% year-on-year to 1.5 billion while return on sales increased from 7.1% to 9%. This meant that the MAN Group again recorded

profitable growth in 2011.

MutedThe company’s management is preparing itself for muted economic growth worldwide in 2012. Frank H Lutz, chief financial officer of MAN SE, says, “We expect the commercial vehicles market in Europe to stabilise around the 2011 level. In contrast, sales in Brazil will decline. Overall, revenue in the com-mercial vehicles business area is set to decrease slightly by up to 5% while the power engineering business area’s revenue is to grow by 5%. Across the MAN Group as a whole, we therefore expect revenue to fall slightly and also lead to a drop in operating profit. Return on sales is likely to remain

at the average long-term target of 8.5%.”

Commercial vehiclesMAN Group’s record revenue was primarily driven by the commercial vehicles business area (comprising MAN Truck & Bus and MAN Latin America), which posted a 19% increase in revenue to 12.6-billion. MAN sold a total of 155,520 trucks and buses, generating a return on sales of 7.7%.

In the year under review, MAN Truck & Bus more than tripled its operating profit to 565-million. The division built on its strong market position for trucks over 6 tons in Europe, ranking second in the segment with a market share of 18%.

Power engineeringThe power engineering business area (comprising MAN Diesel & Turbo und Renk) also remained at a very high level. With a decrease of 4%, revenue declined slightly to 4.0-billion while order intake crept up from 4.0 to 4.1-billion. At 12.8%, return on sales remained clearly in the double digits.

Record RevenueMAN SE closed fiscal 2011 with excellent business figures. The commercial vehicle and mechanical

engineering player said that revenue had increased by 12% last year to a new record of 16.5-billion. According to MAN SE CEO Dr Georg Pachta-Reyhofen, “2011 was a very successful year for the MAN

Group. Despite the ongoing uncertainty on the financial markets in particular, we again succeeded in clearly surpassing the good figures of the previous year.”

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34 Supply Chain Today April 2012

Demand for the compressors and turbines of MAN Diesel & Turbo was very strong. In the maritime segment, orders for cargo ships, particularly large container ships, initially remained at a high level. In the second half of the year, the industry con-centrated on building special ships such as tankers to transport liquefied natural gas and ships used in offshore exploration.

Strategic focusOver the past few years, MAN has strategically ex-panded its international presence and successfully positioned itself in key growth markets. Its BRIC strategy is not only aimed at leveraging market opportunities; due to the different economic cycles of the markets, it also minimises risks. MAN will continue to pursue this strategy in 2012.

MAN Truck & Bus (SA), Tel: (011) 928-6924, Email: [email protected], www.mantruckandbus.co.za

TRUCKING

MAN has strategically expanded its international presence

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Supply Chain Today April 2012 35

MARKET FORUM

The arrival of the new Trafic Panel Van on our shores demonstrates how serious Renault is about offering light commercial vehicle (LCV) solutions to businesses in South Africa.

“We are intent on raising our profile as a contender in the crucial LCV segment. By expanding the range with the new Trafic Panel Van, we’re extending our

New Panel Van Solution

range of exceptionally versatile, com-petent and affordable vehicles in this sector,” says Xavier Gobille, managing director of Renault SA.

With its standard height and long wheelbase, it offers ultimate flexibil-ity to suit any business requirement, matched to an impressive 1 200 kg payload capacity and 2 800 mm cargo

area length. Access to the vast 6,0 m3 load compartment is by means of a single sliding door on the left, along with side-hinged rear doors that can be swivelled through 180 degrees for easier loading. Additionally, side anchorage points are provided to safely secure items in transit.

Comfort and convenience are the hall-marks of the Trafic’s cabin environment, which offers levels of refinement and standard features normally associated with passenger cars. The comprehensive equipment list includes air-conditioning, power steering, electric windows and mirrors, a trip computer, a single-CD, MP3-compatible audio system, and a height-adjustable driver ’s seat.

Vehicle security is a prime consideration in this segment. Accordingly, the Trafic Panel Van boasts an insurance-approved Category 1 alarm and immobiliser system, which includes the Renault Anti-Intruder Device (RAID). This is bolstered by remote central locking with a deadlocking function for ultimate peace of mind. In addition, the spare wheel is fitted with anti-theft bracket.

Renault SA, Alyson Strever, Tel: (011) 607-7306 Email: [email protected]

Imperial Cargo has received Road Traffic Management System (RTMS) accreditation for its Consol fleet, which is indicative of sustainable, high standards in driver behavior and fleet maintenance. The company achieved an overloading ratio of just 0.04%, which equates to two incidents out of every 4 564 trips.

Imperial Cargo has been on a ongoing drive to maintain the highest levels in operational excellence, which is now measured quantitatively through RTMS accreditation. “This complements our commitment to the recently launched Imperial I-Pledge campaign, which aims to create a road user culture of courtesy to make our roads safer and friendlier,” says Christo Theron, Impe-rial Cargo MD.

Linking the RTMS audit path with I-Pledge, Christo says, “RTMS measures loyalty and dedication to customers, staff and national legislation compliance through load control, driver wellness and

vehicle fitness – all factors that impact the way in which we, as a logistics service provider behave on the road.”

These requirements, including an an-nual surveillance audit and a three monthly follow up, minimise vehicle accidents or breakdowns and ensure load safety with on-time delivery every time, all the time. “Driver training,”

he notes “is a business imperative to ensure on-going compliance with RTMS best practice. In our experience too, accreditation lifts the morale of our drivers through the focus on driver wellness.”

Imperial Logistics, Tel: (011) 821-5500www.imperiallogistics.co.za

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MARKET FORUM

The Pinetown branch of FAW recently exported 11 FAW 28.380 trucks to Zambia mak-ing this one of its largest single cross-border deals in 2011.

Since FAW SA was established in the 1990’s, the South Afri-can market has embraced the company’s custom-designed technology for African condi-tions and the past three years have shown significant growth in sales. Tommy Blake FAW Pinetown branch manager says that the cross-border interest in FAW vehicles is growing in leaps and bounds. “Initially there was some reluctance about Chinese products but everyone knows that many of their products are now as good as the best in the world and FAW vehicles are certainly in that category.”

He reiterates that all FAW vehicles are custom-designed to suit South African conditions and says that the modifica-tions for local operation are made in collaboration with FAW engineers in China. These modifications, of course,

include adapting the vehicles to right-hand drive.

Tommy says that he is particularly pleased with the growth in fleet-owners in the past few years. “Many of our customers, who initially started with one FAW, now have twenty or more in

their fleets. This is the best possible endorsement for the quality of our vehicles and service.”

FAW Vehicle Manufacturers SA, Tommy Blake, Tel: (031) 700-5167/(011) 392.1530, Email: [email protected]

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Supply Chain Today April 2012 37

Engen’s pursuit of a ‘greener ’ bulk transport fleet and operation was boosted recently with the purchase of two environmentally-friendly vehicles from Scania.

According to Engen Transport opera-tions manager, Llewellyn Snyman, the bulk transport vehicles both contain Euro 4 spec engines, which run on ADO 50 ppm diesel. They also sport exhaust gas recirculation and particu-late filter technology which translates into fuel consumption savings.

“These are the first vehicles with reduced emissions technology to be owned by Engen. Not only do they offer great fuel consumption and ad-vanced technology but they also have safety features such as driver airbags and pre-tension seat belts, which are

MARKET FORUM

unique in the market,” says Llewellyn.

These vehicles will be operating out of Engen’s Cape Town and Langlaagte terminals. Additional ‘green’ vehicles’ will be purchased in accordance with the company’s fleet replacement pro-gramme and roll-out of ADO 50ppm nationally.

“The Engen Transport Department will be monitoring the performance of these two vehicles and, pending their efficiency and sustainability, will pursue further roll-out,” says Llewellyn. With ADO 50ppm diesel being the future, investing in a ‘greener’ fleet is definitely a step in the right direction for the company and surety to sustainability. Gavin Smith, Engen Petroleum Limited, Tel: (021) 403-4312, Email: [email protected]

The true mobile workforce needs technology in their hands at all times. With mobile Motorola Mobile device from Westcon SA people on the ground can facilitate and take advantage of speedy checkouts, better inventory control, increased productivity and improved supply chain management – no matter where they are.

No matter the application, wired or wireless, networked or standalone, the Motorola range of Mobile device will help to capture data when it’s needed most. Marching to the tune of the mobile workforce, the devices

now also boast a range of unique and innovative features, enabling users to capture data from barcodes in the field, RFID and GPS then either wirelessly update business systems with in-field information, or download it later.

Versatile, rugged and purpose-built, the full range of Motorola Devices will ensure complete accuracy whether it entails scanning at a retail POS, a patient bedside, on the manufactur-ing production line, in the aisles of a warehouse or at the harbour docks themselves. Westcon SA, Tel: (011) 233-3333www.westcon.co.za

The Environmental Footprint Calculator is a new, more user friendly version of the application Volvo Trucks unveiled back in 2001. Among the tool’s new features are the possibility of comparing specific truck’s environmental impact with Volvo Trucks’ newly launched mod-

els, the Volvo FH16 750 hp, Volvo FM MethaneDiesel and Volvo FE Hybrid. The calculator also makes it possible to evaluate the environmental benefits of using alternative fuels instead of fossil fuels. What is more, customers can now examine entire truck fleets

and compare three different trucks’ environmental footprints – features that were not available previously.

“The transport industry is under in-creasing pressure to work actively to reduce emissions and lower energy consumption,” says Lars Mårtens-son, director environmental affairs at Volvo Trucks. “The tool is the result of highly detailed data compila-tion regarding truck emissions through-out their lifecycle – from production to scrapping. The data include parameters such as the calcula-tion of environmental impact from materials, fuels, exhaust emis-sions and maintenance. The analysis can be used to compare different truck models, or to examine dif-ferent ways of reducing a truck’s environmental imprint.

“By training drivers in economical driving, ensur-ing correct wheel alignment or making sure that tyres have the correct pressure, you can significantly reduce emissions even for existing vehicles. Correct wheel alignment and tyre choice, for instance, can cut fuel consumption by more than 10 percent. So you don’t necessarily have to buy a new truck with a more energy-efficient engine – there are many measures you can take to support more sustainable development,” Lars concludes.Tel: (011) 842-5000, www.volvotrucks.com

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38 Supply Chain Today April 2012

APC 20

Apex 8

Bartrans 32

CargoCarriers 14

Criterion 12

Crossroads Inside Front Cover

ILS 34

Linde 17

Psion 28

Sapics 24

Scania Outside Front/Back

Cover

SSI Schaefer 26

Toyota 30

TVH 16

UD Trucks 6

Universal Storage 29

Westcon Inside Back Cover

MARKET FORUM

Index to Advertisers

Please fax us if you wish to subscribe to “Supply Chain Today” at R405,00 (incl post-age, excl VAT) per year; R1020,00 per year for Africa/Overseas (incl postage). We will post you an invoice on receipt of your fax.

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Subscription - 2012

Movianto, logistics service provider to the pharmaceutical, biotechnology and healthcare industry, has implemented Zetes’ TotalProof solution to ensure full traceability during the transportation of temperature-sensitive products and to optimise customer service.

Companies using Movianto’s services now benefit from real-time information exchange and complete traceability during transportation, with real-time visibility confirming the status of their merchandise.

Movianto’s active refrigerated trans-port network spans the entire Iberian Peninsula. It is the only certified active refrigerated transport network dedicated to the pharmaceutical sec-tor. To comply with strict health and safety regulations, products delivered by Movianto require reliable temperature control during transportation.

The company offers 24-hour delivery services to its clientele of wholesalers and hospitals throughout Spain and Portugal.

After analysing Movianto’s needs and studying its operations, Zetes custom-ised its TotalProof mobility solution based on a requirement for proof of pick-up and delivery. The solution allows Movianto to manage and optimise the loading of trucks, deliveries, transfer of packages from one distribution centre to another, and to manage fleet of ve-

hicles by organising the routes taken by their mobile workers. Carriers use mobile devices to communicate in real time via the Movianto transport management system, thus ensuring accurate data input and maintaining real-time visibility of operations.

Movianto operations manager José Revilla says, “Through this solution we have acquired new capabilities. We are now able to optimise other related business processes and have made the delivery service profitable by reducing its expenses and increasing the levels of efficiency in customer service.”

Zetes Corp, Tel: (011) 615-3103,[email protected]

Full Pharmaceutical and Healthcare Traceability

Contact Lelanie Diamond on Tel (011) 781-1401 or

[email protected] to book your advertising space

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Supply Chain Today April 2012 39

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40 Supply Chain Today April 2012

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

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

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

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

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

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

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Scania Distribution Advert.pdf 1 3/14/2012 8:37:18 AM