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Supply Chain Today August 2011 1
Supply Chain Today August 2011 1
2 Supply Chain Today August 2011
Everything for your best friend under one roof.
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Supply Chain Today August 2011 3
August 2011
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 CamplingContributor: Dave Tootill
Advertising Sales:Lelanie DiamondProduct ion and event Manager: Zinobia DocratDTP: Yolanda Flowerday and Lilian KempAdministration and Circu-lation 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 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.
Cover Story5 Go Large
Racking & Shelving7 Unlocking your Potential9 Tips: Housekeeping and Safety
Barcoding & Labelling12 Fresh from the Sea15 Visibility and Mobile
Market Forum — Unit 18 Market Forum - Unit
Software21 Wearing a Bit Thin
WMS23 Who needs WMS if you’ve got ERP?25 10% Extra Selling Space
Greening the Supply Chain27 Trip Report: APICS South Africa
Education30 Launch of the School of Supply Chain
Relocation31 The Coast is Clear
Transport33 RFA Convention
Market Forum — Supply36 Market Forum - Supply
Endorsing BodiesAfritag (div of Smart Card Society)
CGCSA (Consumer Goods Council of SA)
CILTSA (Chartered Institute of
Logistics & Transport: SA)
SAEPA (SA Express Parcel Association) SAPICS (The Association for Operations Management of Southern Africa) also mailed to:
CSCMP (Council of Supply Chain Management Professionals)
Featured on the cover:
TRicardo Faria, SSI Schaefer SA, Email. [email protected], www.ssi-schaefer.co.za
APC
0861 61 61 61www.apcstoragesolutions.co.za
We
have
the
sol
utio
n fo
r al
l you
r st
orag
e ne
eds.
Live Pallet Racking
Push-Back Racking
Self Supported Warehouses
Lockers
Mezzanine Floors
Boltless Shelving
Conveyor Systems Mole Racking Complete Turnkey Solutions and Warehouse Designs
Storage Bins Mobile Shelving Mobile Racking
Light Duty Racking Slotted Angle Shelving
Live Picking Drive-in Racking
Automated Systems Cantilever Racking Pallet Racking
Supply Chain Today August 2011 5
COVER STORY
SSI’s broad range of prod-ucts can accommodate any logistic need,” he tells us. “We have turn-
key solutions for everything from racking to automation, whether the requirement is basic or sophisticated.”SSI Schaefer has made a name internationally for its quality range of warehouse logistics systems.
Storage specialistsThe company’s conventional stor-age range provides pallet racking, miniload systems, carton live storage, multi-tier combinations as well as storage and picking
containers. Their interlock pallet racking is de-signed to meet a number of safety codes as well as being made to suit seismic conditions.
Go LargeWhile locals may be anxious about the South African economy, foreign companies are eyeing our shores as a source of investment prospects.The recent launch of SSI Schaefer in South Africa is an example, and Supply
Chain Today speaks to Ricardo Faria, GM of the newly formed division, to find out what the company has planned for us.
understanding of the South African market,” he explains. “Our needs are different from those in the rest of the world, but I see a wealth of op-portunities for the brand to assist in upgrading the way the country operates, SSI Schaefer can provide a wide range of products thus offering the optimum solutions from one source.”
With many of the company’s products being designed for easy installation and integration, Ricardo anticipates little difficulty in introducing the range. “We’ve already implemented some flagship projects,” he says. “For instance, we recently completed storage and automated picking systems at a distribution facility in Cape Town for a large retailer. We were also recently awarded the UTI Pharma Park contract in Longmeadow which involves ASRS cranes, automated picking and sortation systems; from racking totes to A-frame sorters – we do the works.” He adds that SSI SchaeferSA will be off to a flying start with a number of high profile projects and additional launches in the pipeline.
Ricardo Faria, SSI Schaefer SA
Sophisticated order picking options
Were recently awarded the UTI Pharma Park contract in Longmeadow which involves ASRS cranes, automated picking and sortation systems
Additional options include bolt-free modular shelv-ing, KDR carton live storage, longspan shelving mobile racking and automated mobile racking.The company also recently released its Orbiter System, which provides high density storage with channels in excess of 20 pallets in depth. The system increases capacity more than traditional drive-in storage, using an electrical driven satellite which runs on rails below the pallets.
Automated ranges incorporate storage and retrieval machines for a variety of applications, along with robotic products for palletising, transport and picking systems. There is also a portfolio of planning and realisation tools to optimise operational functions.
South African mindsetHaving been in the field since 1995, Ricardo has a handle on the local climate and he’s confident that SSI’s involvement will have a positive impact on the industry. “The company recognised that it would need to employ a team with a hands-on
6 Supply Chain Today August 2011
Fierce competition
Of course, Ricardo is not unaware of the chal-lenges ahead. “We’re expecting to face fierce competition,” he smiles. “In some areas this is already evident, but in others, such as automa-tion, it’s pretty thin, which will give us inroads to develop market share.
“Our products offer low running cost due to easy maintenance by employing standardised
SSI’s mini-load systems
COVER STORY
and modular system with few components,” he continues. This will come as good news for those who’ve avoided high-tech systems due to the potential for failure. SSI’s systems are designed for reliability and minimal downtime. “We make the best products at the best prices,” Ricardo says with clear confidence. South Africa is ready for us.”
Ricardo Faria, SSI Schaefer SA, Email. [email protected], Website. www.ssi-schaefer.co.za
CILTSA Breakfast WorkshopHow to select the right industrial lift truck for your business
30 August 2011, 07h00 - 10h30: Southern Sun Grayston Hotel
and Conference Centre, Sandton
As a part of its efforts to promotr life-long learning in logistics and transport, CILTSA is planning a series of workshops under the theme “How to...” Thd aim of the series is to provide attendees with knowledge and practical tools they can use in their day-to-day work environment.
Contact Elize van der Merwe on 011 789-7327 or [email protected]
Supply Chain Today August 2011 7
Vicious circle“We are still operating in an environment where customers are focused on low cost solutions. In fact, in many cases, there is no other consid-erations,” says Hilton Campbell of Interroll. A number of suppliers can meet the price that the customer demands, only for those customers to feel the real effect of this strategy after it’s too late. In some cases, they’ve lost more than they originally hoped to gain. This means clients form a negative opinion about mechanisation, creating a vicious circle.
“Another problem stems from the fact that there is a lack of buy-in from business and process owners which prevents companies from meet-ing their full potential with investments. “Often, when customers invest in such technology, it is a complementary technology, by which I mean that the solution requires an integrated approach covering overall business processes. We still en-counter resistance to doing something different, something unknown, and this obstacle prevents us all from really unlocking our country’s full potential.”
Unlocking your potential
RACKING AND SHELVING
In today’s tough commercial environment, many suppliers of conveyor solutions are looking for every opportunity to meet
customer needs and win the order. For a vendor to come out on top, emphasis needs to be put on matching customers needs, ensuring that competitive advantages are translated into real
benefits for the end customer. Interroll tells “Supply Chain Today” that they focus on these areas continuously.
is once again on the initial cost, and not on the overall cost of ownership and the future potential.
Best in classSo, how does a company with local production of rollers, roller drives and drum motors, who are importers of pallet storage concepts, picking and conveyor technology, contend with the local competitors?
Often the engineers and operators are sold on our technology but they are not included in the decision-making process
Incremental stepsHilton elaborates, “I’m fortunate enough to travel abroad periodically to see what is being done dif-ferently within developed markets. But when we tell local companies about these great advances, we hear ‘yes, but what works overseas, won’t necessarily work here’. Perhaps we don’t have to leap to their level but there’s no reason that local companies can’t make small steps to gain some real benefits. It comes down to having the vision, confidence and skills for implementation.”
Often the engineers and operators are sold on our technology but they are not included in the decision-making process. It’s left to people in financial or procurement positions to make a decision on the supplier. Too often their focus
8 Supply Chain Today August 2011
“In reality, it’s not difficult, only challenging. Pro-duction in Ger-many and France is at a very high level of efficiency, and the quality of their output is top class,“ says Hilton. “We are able to compete and win orders, because import-ing is not neces-sarily expensive. However it is, of
course, necessary for the end customer to com-pare like with like, and carefully compare the benefits. We find that, in many cases, where the end customers are themselves leaders in their field, we have a better chance of winning the order. I think it’s because those companies that evaluate the packages on offer, see similarities
Interroll has a complementary range of ma-terials handling products, aimed at improve-ment in bottom line results and a fast return on investment. Their innovation programme is in full swing, with core pillars of cost of ownership, energy efficiency, safety and ergonomics.
To highlight a few of these new enhancements, they include a new pallet separator for the dynamic storage of pallets on a FIFO basis, and an innovative and highly improved speed controller, limiting the pace of the pallet as it travels, with no demand for generated power from loading to unloading. They have a new synchronous drum motor (servo motor technology), offering all the benefits of high speed, reliability and high hygiene require-ments. On the conveyor front, the new roller drive, an integrated 24VDC powered roller, delivers more power, speed and safety.
RACKING AND SHELVING
to their own organisation and know that they have a safe and reliable partner in Interroll well into the future.“
On everyone’s lipsSo what are the future trends, we ask? They are bright according to Hilton. In the past 24 months there has been a lot of attention from a number of overseas-based companies offering integrated conveyor solutions. The reason is that with the global recession, companies that were able to survive looked abroad at new markets, and South Africa is now on their radar screen. For us here this bodes well. With this type of interest from overseas companies, we will see more investment and a higher level of technology that unleashes the full potential of automation.
Everyone is talking about Walmart, good or bad. What this does is make other companies look deeper into their processes, and squeeze out inefficiencies in order to meet new demands from consumers, namely better prices and con-venience. Interroll has recently had success in the Massmart/Walmart segment of the market which augurs well for the future.
“In 2011 Interroll celebrates their 13th anni-versary in South Africa and has a strong client reference list. Our brand is well known and has been highly regarded for more than 53 years. Our “claim” is “Inspired by Efficiency and our past and future success are the result of excel-lent team work and fantastic support from our customers” Hilton concludes.
Hilton Campbell, Interroll Tel: 011 281 9900 www.inter-roll.com
There has been a lot of attention from a number of overseas-based companies offering integrated conveyor solutions
For more information contact our agents throughout South Africa
Apex Strip Curtains & Doors is the leading manufacturerand supplier of PVC strip curtains, insulated and impacttraffic swing doors, roll-up and fold-up high speed doorsand welding and safety screens.
We offer excellent technical and installation support, andquick delivery times.
Designed by Atomic Design Studio. Tel: (011) 422-1949Produced by Coralynne & Associates
Supply Chain Today August 2011 9
Q: What is good housekeeping?A: The housekeeping in your cold store is one of the most important aspects of mobile maintenance. If your housekeeping is not up to standard, it could affect the operation of your mobile racking system.
What can you do?Make sure that pallets are packed properly and any debris is cleared away often.
• Remove debris (plastic wrapping or wood from pallets) from floor and from troughs in the guide rails.
• Remove rubbish from wheel units, wheels and motors.
• The product stored should not weigh more than the maximum load for which the system was designed.
• Store your products on good quality pallets or crates.
• Have the pallets placed evenly across the load beams.
Following these tips can save you time and money as your mobiles will just keep running….
Here are a few tips for keeping your mobiles in a safe and stan-dard work condition:• Check that all the trip bars on the system are operating correctly, ie, mobile stops when the trip bar is ac-tivated.
• Check that all push button controls work correctly on each mobile.
• Make sure that the photo barrier system (one per bank), if installed, works correctly.
• Any damage to side members or tripbars needs to be reported, and re-placed immediately.
• The racking superstructure should also be checked and any damage should also be reported immediately.
RACKING & SHELVING
Tips: Housekeeping and Safety
Well-known supplier of mobiles, Barpro, gives readers some tips on taking care of their equipment and personnel.
It is best to have an appointed person who checks the system on a continuous basis. A standard form should be completed stating the dates of the inspections and the findings. A permanent record reflecting maintenance of your mobiles would ensure that the same problems don’t re-occur.
Cindy Baney, Barpro, Tel: (021) 552-9190, email: [email protected]
PE Trip bar
Push button controls
HUE-TONE
MANUFACTURING
MANUFACTURERS OF
ANODISED AND SEALED ALUMINIUM
LABELSBARCODES
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CONTACT US AT
TEL: 011 493 9038FAX: 011 493 9039
OR VISIT OUR WEBSITE AT
www.huetone.co.za
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Pallets must be packed properly
10 Supply Chain Today August 2011
RACKING & SHELVING
This wasn’t the case when Bearings Inter-national (BI) recently made the decision to upgrade their warehousing and office space. Despite initial hesitation from the
powers that be, management was able to convince their Board of Directors to approve an expansion plan that looks set to launch the company into the big league.
Greenfields and blue skies are invariably
on the wishlist when companies expand their facilities. Unfortunately,
few have the luxury of ticking these check
boxes.
base features an impressive warehouse, with 6700m2 dedicated to storage and canteen area, and another 2500m2 of office space. All of this has been tailormade by storage specialist, ILS, to meet the company’s current and future needs.
The warehouse incorporates two main storage areas, with normal selective racking for bulkier stock and a mezzanine area for smaller items. With four levels of storage area, this section was designed to fully use the height of the building.
The main storage area accommodates both reach trucks for pallet handling of bulk stock to rack locations, as well as high level pickers for put-ting away of loose cases rather than full pallets. The installation is a mix of typical 3.2m wide aisle along with 1.8m narrow aisle. There is a carrying capacity of 30 tons per frame, in some instances over fifteen rack levels. Since many of BI’s pallets are a non-standard size, rack depths had to be tailored to accommodate them.
Completion of the project“It was almost impossible to find an existing facility that suited us,” explains Logistics Director Alan Ross during a tour of the warehouse. “This was the best way to ensure that it not only meets our needs, but also allows us to provide a 24 hour service to our customers and various branches.”
An internal barcode track and trace system streamlines the picking process which often
Research pinpointed this location as one of the best in the country for a warehouse
Big Improvements
The entrance to the new Bearings International facility in Boksburg
ForesightWhen “Supply Chain Today” visited the new premises recently, MD Tony Patten was clearly delighted with the outcome. “Our CEO at the time had the foresight to buy and build rather than renting, and we’re very pleased with the outcome,” he tells us.
Situated in Boksburg, halfway between the N12 and the R21, the facility is perfectly located for optimum accessibility, a fact that is borne out by the neighbouring Toyota DC that is in the process of being constructed. “Toyota’s research pinpointed this location as one of the best in the country for a warehouse,” smiles Tony. “It’s good to know that our instincts were on the mark.”
Tailor-made facilityDesigned and positioned for expansion, BI’s new
Supply Chain Today August 2011 11
involves items that are dispatched as soon as they arrive. “ILS was involved right from the initial needs analysis to completion of the project,” he adds.
Clever touchesThe ILS touch is evident in a range of sophisticated systems in the design. A sensor-based lighting system switches on indi-vidual aisle lights when staff members enter the area, switching them off again to minimise energy consumption. This is en-hanced by the incorpora-tion of numerous windows to introduce natural light.High reach order pickers are guided by embedded guided rails which ensure safe picking at height. Rack safety is also factored into the equation through the use of sturdy bumpers to absorb forklift impact.
As a distributor of bearings and power trans-missions, Alan says that fire hazards aren’t a priority, but due to the storage of a small amount of adhesive and lubrication products, it was necessary to incorporate safety mechanisms to meet insurance requirements. These come in the form of in-rack sprinkler systems, along with a fire/smoke curtain to limit spreading, while water tanks on site ensure ample water supply to extinguish flames.
For the sake of environmentally efficient waste management, there are also facilities for separation and recycling of paper, glass and other refuse. “These are now essential to meet ISO regulations,” explains Alan. There are also standby generators on site to keep operations running smoothly in the event of power failure.
Office spaceEqual care has been given to the office environ-ment, with consideration given to resourceful use of space.“Areas have been designed to keep the various functions within easy reach of each other,” Alan tells us. Open plan areas provide ease of com-munication, while those staff members with private offices share the sense of openness through the use of glass walls overlooking interleading corridors.
“Our upstairs meeting rooms are reserved for company use to increase security,” he continues, “while our downstairs meeting areas also serve as conference rooms or training facilities.” A convivial pub adds the finishing touch to the new sense of corporate unity.
RACKING & SHELVING
High rise storage features motion-sensitive lighting to save energy
A mezzanine level accommodates staff areas as well as increasing storage capacity
Room for expansion“All in all we’re very proud of the end product, it turned out exactly as we’d hoped,” concludes Tony. “We have everything we need here as well as ample room for expansion. It’s nice to be able to take a quantum leap in terms of the position of the company in the market. This facility is the start of our next great phase.”
Alan Ross, Bearings International, Tel. 011 899 0000, Fax. 086 524 5266, Email. [email protected], Website. www.bearings.co.za
Guiderails for high reach trucks
12 Supply Chain Today August 2011
Ethical farming goes beyond simply ensuring that chick-ens get some sunshine every day. Food sources need to
be protected for long-term sustain-ability, not just to keep animal activists happy, but to feed our rapidly burgeoning global popula-tion beyond this generation.
During a conversation with “Supply Chain Today”, Mary Lunde, General Manager at Lusitania, emphasises that the principle applies to both land and ocean sources. “Tracing fish back to source is as impor-tant, if not more so than with meat,” says Mary. “It’s important that fish is accurately labelled so that consumers can be assured
that they’re not eating an endangered species.” Lusitania has addressed this issue with its new range of labelling, along with a new association with Fish On Line (FOL).
BARCODING & LABELLING
Seafood Initiative (SASSI) has implemented a colour-coding reference to indicate the means by which specific fish may be harvested, if at all.
Various species fall into green, orange or red databases, each with varying degrees of control applied, ranging from readily available green codes, vulnerable orange and finally red coded fish, which consumers should not purchase.
Overseas trendMary explains that Lusitania’s informal partner-ship with FOL reflects the international trend for seafood suppliers to go through accreditation processes. FOL is a local fish and seafood sup-plier with Marine Stewardship Council (MSC) Chain of Custody Certification as well as being a SASSI partner. The partnership assures buyers that fish can be traced back to a sustainable, ethical fishery, with the intention of educating seafood lovers about marine conservation issues.
“Our branded products are marketed in varied sectors, so certification is crucial,” adds Mary. With all prawn and salmon stock now being farmed rather than sourced in the wild, labels include information such as batch and spawn dates, with FOL following up farming practices of suppliers.
Sea sickShe goes on to explain that this protects buyers for health issues, such as Red Tide, for instance. “Bacteria in the seafood industry is a major problem which can result in poisoning of fish and subsequently customers,” Mary warns.
“Labelling laws have become necessary since people don’t often know what they’re getting,” she says. “Tiger Prawns are a good example of this. We decided that our labelling should be clear and explain exactly what’s in the box.” Lusitania’s new packaging for prawns, blanched prawn meat and smoked salmon clearly indicates country of origin, processor, exporter, importer and exact ingredients. In addition to expiry date, information also includes recommended storage instructions.
BarcodingShe goes on to say that identification is further facilitated by barcoded packaging. “All new branded products are barcoded for retail purposes,” she explains. Barcodes are currently printed by Fish On Line on freezer labels, although ultimately these will be printed at source onto the packaging.
The company has been allocated unique numbers for either the inner or outer cartons which can be universally read by any barcode scanner at a retail outlet. “This is done for every single item so that the retailer knows exactly what is inside,”
Colour codingApart from the moral aspect, depleting fish stock would have a catastrophic effect on marine ecol-ogy, potentially affecting our seafood resources permanently. The South African Sustainable
Fish can be traced back to a sustainable, ethical fishery
Fresh from the Sea
Mary Lunde, GM, Lusitania
SASSI advises consumers on which fish are viable to buy. The Soupfin Shark and Tuna (or Albecore) are both on SASSI’s Red List
Supply Chain Today August 2011 13
Mary explains. “The barcode will provide detailed information of contents, for example ’16 tiger prawns’, which will then have a price allocated.”
Poor storageObviously labelling can’t circumvent poor storage practices however when it comes to retailers and restaurants, correct management usually resolves this. “Top chains require audits by independent food auditors to maintain best practices in supply chain management,” she tells us. “Care should be taken to prohibit stock from standing outside, while correct disposal of waste is monitored. This is further enforced by annual Health Department checks of sanitation, etc.”
Lusitania itself is governed by these regulations and the company adheres to strict rules regarding temperature management, among other issues. The transport fleet is equipped with reliable re-frigeration units to ensure optimum temperature controls at all times during travel.
Fish aren’t just offloaded from boats and dumped at restaurants
BARCODING & LABELLING
According to Mary, with advances in freezing technology, many of the issues that previously affected seafood supply to restaurants are no longer a problem. “Fish aren’t just offloaded from boats and dumped at restaurants,” she chuckles. “And few restaurants buy fresh fish anymore. The freezing and processing of fish is now so sophisticated that it’s actually preferable to source fish frozen on board.” Hopefully with a splash of good management and a soupcon of good conscience, our oceans will be able to feed our grandchildren.
Mary Lunde, Lusitania, Tel. 031 466 1545 Fax. 031 466 1808, Email. [email protected], Website. www.lusitania.co.za
The Marine Steward-ship Council (MSC) works with partners to promote sustainable fishing practices
Alaskan Salmon
Albacore Tuna (pole caught)* Albacore Tuna Anchovy Angelfish Atlantic M
ackerel Calam
ari (Squid)Canned Tuna (selected
sources)*
Dorado
Gurnard (offshore trawl)*
Hake Herring Horse M
ackerel/M
aasbanker
Kob (land based farms)*
Mussels (farm
ed & w
ild)*
Oysters (farm
ed & w
ild)*
Panga (line caught)* Portuguese
Sardines Q
ueen Mackerel
SanterSouth African Sardines South African SnoekW
est Coast Rock LobsterYellow
fin Tuna (pole caught)* Yellow
tail
GREEN - BEST CHOICE
Abalone (farmed)*
Atlantic Bigeye Tuna Atlantic Yellow
fin TunaAtlantic/N
orwegian Salm
on (farm
ed)* Cape D
oryCarpenter (line caught)* Catface RockcodAfrican Sharptooth Catfish
(farmed)*
Englishman
Geelbek/Cape Salmon
(line caught)*
Hake (longline)* HottentotJacopever (offshore traw
l)*
King Mackerel
Kingklip
Kob (farmed at sea or
line caught)*
Monk
New
Zealand Kingklip/Ling
Pangasius/Basa (farmed)*
Prawns
Red Roman
Sharks (line caught)* Skates and Rays*SlingerSole (East Coast) Sw
ordfish W
hite Stumpnose
(line caught)*
Yellowtail (locally farm
ed)*
ORANGE - THIN
K TWICE
*See ww
w.w
wf.org.za/sassi for details
*See ww
w.w
wf.org.za/sassi for details
Black Musselcracker/
Poenskop Bluefin TunaD
ageraad Indian O
cean Bigeye Tuna
Indian Ocean
Yellowfin Tuna
Kob (trawl caught)*
Red SteenbrasRed Stum
pnose/M
iss LucyScotsm
anSharks (traw
l caught)*
White-edge Rockcod
Yellowbelly Rockcod
NO SALE SPECIES
Baardman/Belm
an Blacktail/D
assie Brindle Bass Bronze Bream
Cape Stum
pnose G
aljoen G
arrick King Fish Knife Jaw
N
atal Stumpnose
Natal W
rasse Potato Bass River Snapper Seventy-four Spotted G
runter W
est Coast Steenbras W
hite Musselcracker
White Steenbras
RED - DON
’T BUY
Species in the RED list w
ith a black background are illegal to sell in South Africa. Either specially protected or recreational “no sale” species. Never buy these.
fish
The MSC eco-label indicates that a product
is certified to be from a w
ell-managed and
sustainable fishery. For more inform
ation, visit: w
ww
.msc.org
Remem
ber the product must carry the M
SC logo to be sure it com
es from a M
SC certified fishery.
Specially protected species
Fishery Improvem
ent Projects underway
FishMS
brought to you by Sim
ply text the name of the fish to the num
ber 079 499 8795 and you w
ill imm
ediately get a m
essage telling you whether to tuck in, think tw
ice or avoid com
pletely! Normal netw
ork rates apply.
Species are regularly being added to our database, w
hich is available through FishMS, our m
obi site and w
ebsite.
ALWAYS ASK THE FOLLOW
ING
QUESTIONS
What is it? W
here is it from? How
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Research has shown that the consum
er who asks ques-
tions drives positive change more rapidly than those
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ake eco-friendly choices, but don’t inform the
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KEY TO SYMBOLS
NOT ON
THE LIST?
LOOK OUT FOR THE MSC LOGO
*See ww
w.w
wf.org.za/sassi for details
Supply Chain Today August 2011 15
BARCODING & LABELLING
Supply Chain Today” meets Andrew Fos-brook, MD of ProScan, and Alex Driesen, the senior vice-president for the territory, from Zetes Corporate in Brussels.
This is the first time a global systems integra-tion group has entered the South African data automation and mobile computing market. The price of this acquisition is around R50 million, after a lengthy due diligence process. According to Zetes, the move will assist them to establish a strong presence in Africa, which is regarded as the next growth point for multinationals, as Europe continues to falter.
Visibility and MobileThe ProScan group has announced that it has been acquired by Zetes Industries, a listed European company
specialising in automatic identification solutions and services.
on a rebranding exercise and adopting the Zetes name and corporate identity, there will be no major changes from an operational point of view.”
Shaken upThe company will enjoy the financial backing and purchasing power of Zetes as Europe’s largest value-added reseller of Motorola and Intermec solutions. Both organisations share similar his-tories, vendor partners and visions. This provides ProScan with access to knowledge, capabilities and experience in software, technology, solutions and services that are far ahead of South Africa, and will accelerate its expansion, including the extension of Zetes’ relationships with multinational companies in Europe to the South African and African markets, providing the same support and service they are used to.
In addition, the country’s whole retail and logis-tics supply chain network is being shaken up by the arrival of Wal-Mart, and inefficiencies will be under scrutiny. Competition is also increased by consumers buying down, and there is no major recovery in sight here in this country, so there is continued pressure on cost. With such strong forces in play, Zetes has found itself resilient to recession.
Cutting out frustrationsAutomation is aimed not at replacing labour, but at enabling growth with the same resources, and even reducing staff turnover by cutting out frus-trations. For the typical warehouse manager, the major difference in basic concepts and practices in the last 20 years has been via barcoding. The automatic identification market used to involve debates on who had the cleverest niche gadgets.
But today pick-by-voice is common in Europe. Zetes has around a thousand users; ProScan has three, so the growth potential is clear. It already carries out regular technology update roadshows for customers, and there is plenty more scope for re-engineering the business processes, based on more than just selling the technology itself. Zetes in Europe has knowledge competency centres to build this approach, similar to that of IBM Global Services, Software AG, and others.
In their sightsThe elephant in the room is ‘mobile’. What are the implications? They won’t be settled in this article! Andrew says that at an Intermec confer-ence he attended, a Gartner speaker thought that ‘mobile’ was shooting up the league table of the IT
Andrew Frosbrook
The country’s whole retail and logistics supply chain network is being shaken up by the arrival of Wal-Mart, and inefficiencies will be under scrutiny
ContinuityProScan is well known to our readers, but just to repeat ourselves, it has since its founding in 2004 grown to be the leading specialist in au-tomated data collection and mobile computing technologies and solutions in southern Africa. Its customers are in a wide range of industries, from fast moving consumer goods to utilities. Andrew says they’ll be rebranding to Zetes-Proscan; due to its reseller focus. iData Distribution will retain its name and continue trading independently.
Andrew will continue to head up the group after the acquisition, and adds “Despite embarking
Supply Chain Today August 2011 17
BARCODING & LABELLING
Alex Driesen
Automation is aimed not at replacing labour, but at enabling growth with the same resources, and even reducing staff turnover by cutting out frustrations
interests of executives. That’s executives, not warehouse managers. In terms of IT, cost reduction has reached the end of the road. We hear about mobile books, pads that allow you to attend a talk and do something else without looking too rude, social media, and so on. In Zetes’ sights is the issue of visibility and mobile in the supply chain.
Visibility is described by Alex as the link between information systems and the real world. So, voice and barcoding are part of the execution element. Incidentally, Dan Gilmore said at a recent conference that the old differentiation between planning and execution is likely to get fuzzy. Watch out for that debate.
ImplicationsThe basic hierarchy is en-terprise resource planning
feeding, say customer orders, down to a ware-house management system, down to automatic identification- although that can itself be a semi-WMS. We didn’t have time to ask Alex about RFID, with all its Wal-Mart implications. That’s for another occasion.
Zetes, by the way, was one of the Argonauts in Greek mythology, but why the company was originally named after him seems a mystery.
Andrew Fosbrook, ProScan Tel: 011 615 3103, Email: [email protected] Website: www.proscan.co.za
Features for October 2011Warehouse Management Systems and Inventory control
Security including fuel theft
Green Supply Chain Awards Winner Announcement
Contact Lelanie Diamond on Tel ( 011) 781-1401, Fax: (011) 781-1403, E-mail: [email protected] to book your advertising space
18 Supply Chain Today August 2011
Market ForumFlooring upgradeSome of a.b.e. Construction Chemicals’s flooring products are being used for the refurbishment of warehouse floors at the company’s own premises in Boksburg.
a.b.e. used some of its most trusted flooring products, such as abeco mastic, for refurbishment of its own warehouse floors in Boksburg. Pictured: abeco mastic application at ABSA Capital parking areas
Project lighting marketEurolux is making its entry into the local project lighting sector with the offering of its first range of professional project lighting to retailers and wholesalers. Included in the range are high bays, pendants and downlights, ideal for commercial, retail and manufacturing environments.
Calling the move a natural progression, Shaun Bouchier, director at Eurolux, says they have been planning their entry into the project lighting space for a while now, but their focus was on finding the right products for the South African market.
The emergency backup battery offered on two of the ranges, is particularly useful in factories, retail stores and offices. “South Africa has its fair share of electricity outages and we also have to contend with load shedding, that is why these products that still offer customers 50% of their light output for a three hour period, are proving so popular,” elaborates Shaun.
“High-intensity discharge (HID) lighting, as found in the Eurolux high bay pendants, can provide more light over a greater distance, ideal for warehouses with very high roof structures and areas where large spaces have to be lit.”
Shaun Bouchier, Eurolux, Tel (021) 528-8400, [email protected]
Anodised aluminium labelsHue-Tone Manufacturing has developed a unique process for printing onto anodised aluminium. The company pro-duces a wide variety of high-definition printed products on aluminium sheets, from single colour to the full colour spectrum.
Anodised and sealed aluminium is a highly durable mate-rial. In-house anodising enables the production of high quality black or multi-colour print on aluminium, includ-ing full colour litho reproduction. Thereafter the print is sealed within the surface of the aluminium, resulting in a product which is resistant to most chemicals, as well as to corrosion 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 maintenance recording; container and pallet tracking; identifying warehouse bin locations; and labelling of manufactured machinery or products.
Either acetone-activated or self adhesive may be pre-applied to the rear of the labels. The cheaper of the adhesives permits “peel off and stick” application, while the more expensive one requires activation with industrial acetone prior to application. If the activation process and subse-
Peter Jones, a.b.e.’s national flooring manager, says a.b.e.-approved applicator, Permafloor was contracted to apply abeco mastic to six internal ramps as well as areas in the warehouse where the floor was in very poor condition. Another a.b.e.-approved applicator, Idufloor, handled the application of two a.b.e. polyurethane systems, abescreed PU and abeflo HPU to the entrance of the warehouse.
“Abeco mastic has already been successfully applied to single areas exceeding 10 000sq m in size. The a.b.e. Boksburg warehouse required 213sq m. It is especially recommended where a smooth, level, durable floor with an attractive appearance is required.
“Abeco mastic is a cold-laid bituminous mastic consisting of stone chippings, portland cement, sand and flintkote 3 binder. The flooring system, which does not require any expansion or contraction joints, has around 50 years’ service history on the local market and is suitable for areas such as warehouses, railway platforms, printing works, heavily trafficked corridors, textile factories, and loading bays.
Some of the features and benefits of the abescreed poly-urethane system being used for the upgrade of the ware-house floors include: seamless and hygienic finish when sealed - no crevices where dirt and bacteria can collect; clean and sterile - low maintenance required; non-slip finish; high abrasion resistance; solvent free - low odour; far longer life than unprotected concrete; and excellent resistance to damaging liquids.
Areas where a.b.e. polyurethane screeds can be used include food and chemical processing plants, pharma-ceutical plants, areas where the floor is subjected to hot fluid or steam spillages, and on heavy impact or heavy duty trafficable areas.
The third a.b.e. product being used for the repair project is abeflo HPU, a self-levelling polyurethane product. This product is exceptionally impact resistant, can cope with constant high pressure cleaning as well as temperature extremes, and is particularly suitable for ‘wet’ areas.
Elrene Smuts, a.b.e, Tel 011 306-9000, www.abe.co.za
Supply Chain Today August 2011 19
Market Forum
New way of doing things“Cradle Technology Services, the authorised distributor for LXE in Sub-Saharan Africa, recently announced the launch of the new LXE Marathon field computer. True to the tradi-tion of LXE mobile computers, this mobile computer is born
quent application is carried out correctly, this adhesive ensures that the barcode cannot be removed from the surface to which it is adhering without either destroying the label itself or the underlying surface.
Hue-Tone supplies customers with aluminium products throughout South Africa, Africa, and internationally.
Bruce Pringle, Hue Tone, Tel 011 493-9038, [email protected]
Tipped the scalesDiplomat, Israel’s leading sales and distribution company with suppliers including Proctor and Gamble, Kraft, Cla-rins and others has chosen Goscor Lift Truck Company (GLTC) as its materials handling supplier for its new South African operation.
Its first order, valued at approximately R2 million included three 2,5 t Doosan diesel forklifts, two Crown ESR 5000 reach trucks and two Crown WT 3000 powered pallet trucks.
Diplomat South Africa operations director Mark Damen says he had little difficulty in choosing GLTC to provide the warehouse equipment. “I have known them for a long time and have faith in both their product and their sup-port service. While they were up against another leading supplier, I believe Crown to be the best reach trucks on the market, and this tipped the scales in favour of Goscor. They offered a competitive package overall and everything’s working out fine,” he says.
Darryl Shafto, Goscor, Tel: 0861 GOSCOR (467 267), [email protected], www.goscor.co.za
Johan Pretorius, Diplomat fleet and maintenance manager (l) and GLTC regional sales manager Darryl Hancock in Diplomat South Africa’s new warehouse
Cushion tyre trucksNew to the BLT range of Taylor industrial forklift trucks are cushion tyre industrial trucks with a tight turning radius, perfect for use in warehousing.
“The new Taylor XC series encompasses cushion tyre lift trucks which have been designed to fit into narrow aisle spaces for unhindered operation in warehouses and stor-age yards,” says Clinton van den Berg, products manager for BLT. “These cushion tyre trucks provide significant lift capacities in compact spaces where maneuverability is limited, ensuring efficient productivity in all applications.
“There are nine units in this range, with a 610 mm load centre and rated handling capacities between 8 165 kg and 15 876 kg. The three speed transmission with standard APC (Automatic Powershift Control) gives the operator total control, even at high rpm’s. APC is an electronic
BLT, specialists in materials handling equipment for diverse applications, has extended its range of Taylor industrial forklift trucks to now include the new Taylor XC series cushion tyre industrial trucks
rugged. It is designed for use in field service applications, inspections, or any application where the PC needs to be
taken to the physical workplace.
The Marathon can be purchased with Win-
dows 7, XP or an em-bedded CE system. It can be configured to contain a GPS, GSM 3G Radio, WLAN and Bluetooth, Fingerprint reader, Outdoor 7 Inch display, rugged cas-ing, full keyboard and various camera’s or
scanner options. Craig Collins, project director
for Cradle Technology Services, is convinced that this device is set to revolutionise the way operators perform computing functions in the field.”
Craig Collins, Cradle Technology, Tel (021) 851-0624, [email protected]
20 Supply Chain Today August 2011
Market Forum
Transporting trolleysSerco has just completed a contract to produce 27 truck bodies for Bakers Transport in Pietermaritzburg.
“Bakers wanted lightweight vehicles with a high quality finish and that’s what they will get from our innovative dry freight fibre glass truck bodies fitted with aluminium roll over back doors. Roller shutter doors were ideal for this operation and Serco’s new durable C4 roll over door was the solution they were looking for, “says Serco MD Clinton Holcroft.
The new bodies are fitted onto a new generation Mercedes-Benz Atego 2323 truck tractor specifically imported from Germany.
Explaining the process leading up to the deal being sealed, Clinton says Serco built Bakers a prototype truck body based on what their requirements were. “Bakers need the vehicles for a new logistics contract for Clicks,
Mohamed Noushad (Bakers Transport) and Ty-rone Deyes (Serco Industries) discuss the new Profiled Scuff incorporating a Load Lock Rail. This feature offers extra protection to the body from trolleys and supplies a durable platform for trolley securing straps to be mounted
transmission shift and speed controller, where a series of safe operating parameters is pre-programmed, so the operator is unable to exceed the safe shift and speed programmes.”
Clinton van den Berg, BLT, Tel (031) 274-8270, email [email protected], www.biglifttrucks.com
which involves trolleys being used to move a wide range of consumer goods.
Bakers had previously used steel and aluminium bodies. Tests were done in which tem-peratures were monitored in the existing vehicles and the new GRP dry freight Serco body, revealing up to a 10oC vari-ance. “We proved that temperatures in our GRP ve-hicles were far more controlled and suitable for consumer goods like chocolates and appliances.”
Serco then carried out modifications on 30 existing Baker’s Transport truck bodies and trailers to suit the new contract. All modifications were carried out over a two month period and completed on time.
Clinton Holcroft, Serco, Tel 031 508-1000, [email protected], www.serco.co.za
Supply Chain Today August 2011 21
Sonae’s plants were running 24x7, and nei-ther customer service nor working capital were a significant issue. Late 2008 is a notorious date regarding the economies of
the world, and suddenly, unprecedentedly, demand dropped below supply for Sonae Novobord. So how did they react?
Wearing a Bit Thin
SOFTWARE
“Supply Chain Today” had a word with Rob Stead of Sonae Novobord at the annual Sapics conference where he presented a paper. Sonae is one of the two dominant
particleboard producers in the country. For years, they were in a position where their large asset investment in plant made them a low-cost producer, so that only one other
company in the country, PG Bison, could compete on price.
another. The company started defining model inventory targets, for instance ordering melamine paper weekly rather than monthly. Dawid Janse van Rensburg of Cargo Carriers assisted with Theory of Constraints concepts, and Rob has studied the Supply Chain Council SCOR model.
They initiated sales and operations planning us-ing spreadsheets.
Customer service performance, which can of course be measured in various subtly different ways, such as one day late or dispatch versus receipt, was about 30%, and is now on a plateau of around 80%, on an On Time In Full (OTIF) definition.
Trend in metricsBut this seems to keep customers satisfied, many of them being wholesalers with their own inven-tory. Rob says that the trend in the metrics was more important than the actual number. Direct deliveries from the eastern side of the country needing to fill a 38 ton capacity truck for many LSP’s add a day or two to lead times. But a DC hub alternative would cost 40% more. The wholesalers are the DC in practice. This leaves the problem of visibility into the outbound sup-ply chain.
The lesson we heard was that the constant bom-bardment by ERP and Business Intelligence (BI) software salespeople against spreadsheets may be wearing a bit thin.
Rob Stead, Sonae Novobord, Tel (011) 236-1400, Fax 086 699 0571, Email [email protected], www.sonae.co.za
First, some background. They are a company based in Maia, Portugal, and are the largest producer of wood-based panel products in the world at some R13 billion, with plants here in White River and Panbult (near Piet Retief). As you can guess from their location, they use excess wood from the for-ests and sawmills, to manufacture products with a melamine or veneer finish. In 1998 they invested R350 million in the plant at Panbult, and two years later acquired the Sappi Novobord business. Selling to fabricators and end users, they move 300 rugby fields-worth a month.
UnreliableAt the time of the ‘crash’, Sonae was implementing SAP including APO, but their data was unreliable. Data is one thing, inventory management policy is
Selling to fabricators and end users, they move 300 rugby fields-worth a month
Access to real-time data makes it possible to improve cus-tomer service, by providing or-
ganisations complete visibility into the supply chain that can offer real busi-ness benefit to logistics companies.
One of the areas where a business can reap significant benefit is through the management of vehicles and cargo in real-time. Through the use of mobile computers, scanners and wireless tech-nology with tailored applications, via enterprise mobility, a company can in-crease visibility into dynamic, mobile logistics environments by capturing, moving and managing data about cargo, vehicles and workers instantaneously.
This in turn provides critical information about who’s driving what vehicle, where they are and when they are required at a destination. To this end customers await-ing shipments will have a clear outlook to information about pick-ups and deliveries and then make informed decisions about their supply chain and their business.
Another benefit is visibility into keeping track of vehicles and drivers as well as the automation of the associated paper-work. Drivers have to worry about mak-ing deadlines safely without the added
stress of accurate paperwork. By arm-ing them with mobile computers, drivers can gain complete control over dispatch, pick-up and delivery processes, right from the loading dock to the customer’s door.
In addition they can streamline load plan-ning, routing and scheduling and elimi-nate costly misappropriation and inac-curate loads. With an automated system a business can accurately monitor driver and vehicle performance and relay dy-namic routing decisions to drivers to help reduce costs and increase produc-tivity. In addition, by using scanners to automatically track freight from pick-up through to the release of cargo, they can cut out costly paper-based processes.
Nothing is worse than having a vehicle break down on the road; to this end be-ing able to optimise vehicle use can be in-valuable. Using the same data used to plan and manage delivery operations, trucking companies can also help keep vehicles roadworthy, use vehicle performance information to make better-informed maintenance decisions that will in turn im-prove performance, reduce downtime and lower your business’ spare parts inventory.
Whether in the air, on the ground or at sea, the transportation industry is con-
Caroline Jane Scofield, Mobility Business Development Manage-ment at Westcon
stantly changing, with people, vehicles and inventory always on the move. A multitude of variables need to be carefully synchronised throughout the supply chain in order for each individual job to be successfully executed. Remember the risk of errors and inaccuracies, whether they are as a re-sult of human error or outdated systems, remains great.
By making use of enterprise mobility systems and de-vices a company can significantly accelerate pro-ductivity, profitability and operational efficiencies.
Thought LeadershipEnterprise mobility can assist logistics companies’ deliver on time
“Drivers have to worry about mak-ing deadlines safely without the add-ed stress of accurate paperwork.”
Supply Chain Today August 2011 23
Richard starts off by saying that the first common sense issue to be put out of the way is the complexity of your situation. There is a stores spectrum ranging from a
garden shed, to a DC with a capital investment of say R300 million. Many warehouses have opera-tions, even in major multinational corporations, where the warehouse is small or simple and the value proposition for a third-party WMS instal-lation is problematic.
Once you cross that boundary, ask yourself, what are you trying to achieve? What do your customers want, what is the competitive landscape, what supply chain and IT expertise does your business have, do you measure customer service anyway?
WMS
The use of Warehouse Management Systems has been noticeably growing for several years. Unless your company is still battling on with an ERP system that is no longer a teenager, you probably have something
apparently similar in terms of functionality already available from your software vendor. “Supply Chain Today” asks Richard Evans, CEO of iWMS, the associate here of HighJump Software, why WMS or ERP?
Who Needs WMS if you’ve got ERP?
more complex operations. Besides limited func-tionality and adaptability, the transaction-oriented ancestry common in these modules also creates limitations in complex warehouse operations where real-time direction and management of activities are a must. A real-time execution paradigm for the warehouse floor is foreign to the architectural foundation of most ERP offerings.
Many questionsTo determine if your ERP module can match the best practice capabilities of most best-of-breed WMS solutions, ask these questions: does the ERP warehouse module offer native RF device capability or are all work tasks paper-based? real-time task interleaving? wave planning? track-ing an SKU stored in multiple locations within a warehouse (eg, all stock in one forward pick location and one reserve location)? compliance labelling or special formatting for the paperwork
Free,” it may not generate an ROI equivalent to that of a best-of-breed WMS
Limitations createdA simple example of what WMS adds is tracking exactly where each element or load of inventory is located in the warehouse, including material that has been received but not put away. Typi-cally, this material is not available to fill orders. In many ERP-related systems, once a receiving document is completed, the inventory is available for picking even though it has not been put away. The transaction is complete, but the warehouse process is not ready to use this material for order fulfillment.
Most ERP warehouse modules force significant operational compromises in dealing with larger,
A simple warehouse
Access to real-time data makes it possible to improve cus-tomer service, by providing or-
ganisations complete visibility into the supply chain that can offer real busi-ness benefit to logistics companies.
One of the areas where a business can reap significant benefit is through the management of vehicles and cargo in real-time. Through the use of mobile computers, scanners and wireless tech-nology with tailored applications, via enterprise mobility, a company can in-crease visibility into dynamic, mobile logistics environments by capturing, moving and managing data about cargo, vehicles and workers instantaneously.
This in turn provides critical information about who’s driving what vehicle, where they are and when they are required at a destination. To this end customers await-ing shipments will have a clear outlook to information about pick-ups and deliveries and then make informed decisions about their supply chain and their business.
Another benefit is visibility into keeping track of vehicles and drivers as well as the automation of the associated paper-work. Drivers have to worry about mak-ing deadlines safely without the added
stress of accurate paperwork. By arm-ing them with mobile computers, drivers can gain complete control over dispatch, pick-up and delivery processes, right from the loading dock to the customer’s door.
In addition they can streamline load plan-ning, routing and scheduling and elimi-nate costly misappropriation and inac-curate loads. With an automated system a business can accurately monitor driver and vehicle performance and relay dy-namic routing decisions to drivers to help reduce costs and increase produc-tivity. In addition, by using scanners to automatically track freight from pick-up through to the release of cargo, they can cut out costly paper-based processes.
Nothing is worse than having a vehicle break down on the road; to this end be-ing able to optimise vehicle use can be in-valuable. Using the same data used to plan and manage delivery operations, trucking companies can also help keep vehicles roadworthy, use vehicle performance information to make better-informed maintenance decisions that will in turn im-prove performance, reduce downtime and lower your business’ spare parts inventory.
Whether in the air, on the ground or at sea, the transportation industry is con-
Caroline Jane Scofield, Mobility Business Development Manage-ment at Westcon
stantly changing, with people, vehicles and inventory always on the move. A multitude of variables need to be carefully synchronised throughout the supply chain in order for each individual job to be successfully executed. Remember the risk of errors and inaccuracies, whether they are as a re-sult of human error or outdated systems, remains great.
By making use of enterprise mobility systems and de-vices a company can significantly accelerate pro-ductivity, profitability and operational efficiencies.
Thought LeadershipEnterprise mobility can assist logistics companies’ deliver on time
“Drivers have to worry about mak-ing deadlines safely without the add-ed stress of accurate paperwork.”
24 Supply Chain Today August 2011
involved in shipping? Does it support value-added activities such as kitting, packing stations and special packaging instructions?
From a warehousing operations perspective, the contents of the box, case or container are not as important as how it is handled. The fact that material is received into a warehouse as boxes on a pallet and shipped as eaches being picked from the boxes and packed with other eaches into a shipping carton is more important than the fact that the contents are pieces of clothing, electronic components, automotive parts or bottles of pharmaceuticals.
Many organisations utilise detailed checklists to assess the functional fit of an application. However, he warns that while this is a valuable approach overall, there can be confusion between you and the vendor over the terminology used to explain functionality.
WMS
your application needs with a single monolithic infrastructure from one ERP vendor or to have a portfolio of solutions to meet your unique needs. The motivation within an IT organisation to choose a monolithic approach is quite simple; integrating disparate business applications is hard, dirty and detailed work, and the risk of failure is high (as has been seen in many well-publicised failures).
The single vendor approach presumes that the vendor has actually done the integration. Yet, this is not always true. It is imperative that you ask the vendor to prove this assertion. In most organisations, ERP functions as a replacement for a legacy financial and/or order management application.
Flexible integrationThe architecture of an ERP system typically solves integration with other modules using a proprietary approach that often leads to a limited set of external interface definitions. Best-of-breed WMS solutions tend to be more flexible in how they integrate with the applications of the out-side world. Remember that for them, integration with disparate applications has always been a requirement. The maturity of their architectures usually provides existing interfaces to major ERP solutions (such as SAP and Oracle).
Many warehouse operations, especially those with high-volume pick, pack and ship require-ments, include sophisticated automatic mate-rial handling equipment. This equipment might include conveyors, sorters, carousels, A-frame picking systems, pick-to-light systems, and so on. Most best-of-breed WMS solution vendors have extensive experience integrating their solutions with these devices.
Where it’s atOne indication of product maturity and archi-tecture is how the application supports supply chain visibility. This includes the solution’s ability to support your knowledge (or your customers’ knowledge) of the status and whereabouts of all transactions at any moment, such as the status of an order, a vendor ’s status on a PO that is urgently needed for manufacturing, or a customer service representative’s query about inventory availability etc.
The capability to report on a pick-up in Asia and whether it will make it to the boat on time is not just a new feature to hype to prospects. The geographic breadth of many companies’ supply chains brings with it the complexity of always knowing the whereabouts of orders, shipments and inventories. The added demand for rapid response to customer requirements and the necessity of delivering on promises have raised the level of minimally-acceptable performance.
Richard Evans, iWMS. Tel: 011 431 0095 Email: [email protected] www.iwms.co.za
The single vendor approach presumes that the vendor has actually done the integration
Done the dirty workThe essential struggle here is driven by your or-ganisation’s strategy decision either to address
A n example of what WMS adds is tracking where inventory is located in the warehouse
In many ERP-related systems, once a receiving docu-ment is completed, the inventory is available for picking even though it has not been put away
Supply Chain Today August 2011 25
WMS
He refers to Wal-Mart as essentially renting shelf space to manufacturers and sending them sales data every half an hour as demand changes, so that
replenishment can be coordinated. All costs are pared, for instance by employing retired people at the tills, and overheads are sweated by 24x7 opening hours. And costs throughout the supply chain have to be transparent.
Several formatsMassmart started off here as Makro Cash and Carry stores via SHV of Holland, who were a shareholder for eight years, and still control Makro outside Africa. With SHV in the Netherlands is also Ahold, a global food retailer, Albert Heijn being the major player there, having more than 700 stores in several formats. They are a refer-ence site for IMI.
10% Extra Selling Space
Ian Huntly tells “Supply Chain Today”that the retail supply
chain is in for a period of turbulence, with the arrival of Wal-Mart as the game-changer in acquiring Massmart. Ian is the managing
director of Rifle-Shot, the value-added reseller of IMI (who were taken over by CDC
Software 3 years ago).
to the weather, or the standard neighbourhood store, or stores with fresh products like sushi with very short lifecycles, and so on.
The productivity with IMI Warehouse improved by up to 3%, but even more important has been the flexibility with which both large and small orders can be serviced. The average stock level for fresh goods is less than two days, and the service level is 99%, giving up to 10% extra selling space. The two national DC’s service four regional DC’s, and the stores are replenished at least twice a day.
Ian speculates whether cellphone ordering might become a growing factor in South Africa, with same-day deliveries obviating driving to the re-tailer. In the meantime, the retail supply chain will have to hone more basic processes.
Ian Huntly, Rifle-Shot, Tel 011 803-0570, Cell 082 650 0618, Fax 086 684 7170, ian.huntly@rifle-shot. com, www.rifle-shot.co.za
The average stock level for fresh goods is less than two days
Albert Heijn’s analysis of consumer habits shows that there always remains an element of the unpredictable in customers’ buying actions. Although planning provides for replenishment in bulk, there is a problem with timely shelf replenishment, which can be resolved only by responsiveness to actual demand. In order to drive costs down, Albert Heijn launched a major initiative to streamline the logistics into their retail stores. The product range differentiation per store demands very high flexibility at the six distribution centres.
Twice a dayA truck leaves every minute for one of the cen-tres to provide products to the different store formats- stores in big cities where clients show impulsive buying behaviour, including reacting
August 2011 25
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Supply Chain Today August 2011 27
Trip Report: APICS South Africa
GREENING THE SUPPLY CHAIN
“Supply Chain Today” came across this report from Dan Gilmore - we thought it made for interesting reading. I am literally just back from attending and presenting at the South African chapter of APICS, and know you
will be interested in what I heard and saw. The organization and conference are actually called SAPICS, and software company RedPrairie both in South Africa (SA) and in the US (David Levin and Jim LeTart,
respectively), Imperial Logistics (Corbus Rossouw from this largest 3PL in SA with a strong presence also in other parts of Africa and in Germany ), and Jenny Froome, who helps manage the conference, were all
involved in getting me there and producing a world class event.
I will summarize a number of the interesting sessions I attended while there for three days, but first I offer some impressions of this beau-tiful country overall, after my first visit there.
South Africa is a G-20 country with very ad-vanced businesses and supply chain practices, and I heard from several people that the country is especially advanced in demand planning and forecasting processes. I happened to run into Peter Counihan, CEO of US material handling company Fortna at SAPICS (turns out he is a native South African), and he said Shoprite, one of the largest retailers there, has a 2 million square foot DC that is as impressive as any you will find in the world (US retail DCs usually top out at about 1.5 sq. ft., I believe).
While SA has a number of global businesses (e.g., SABMiller), for now most believe it has major opportunities for growth in the near term just within SA itself and the rest of the African continent. People are worried, however, about the potential for ineffective government within SA and the still large problem of corruption in many areas of Africa.
The Chinese intrusion, especially with regards to locking up deals for raw materials in Africa,
is a concern. So is the just finalized acquisition of the large Massmart retail chain by WalMart. That included a two day symposium earlier where the pros of the deal were argued one day and the cons the next in a well publicized event. The biggest fear was that in-country suppliers to Massmart would be replaced with ones from China and elsewhere, though it turned out Massmart was globally sourcing more than most realized. In the end, though many are nervous about the deal and naturally somewhat sad to see a local success being taken over by a US giant, a signifi-cant percentage believe that WalMart will help drive overall improvements by example in the country, which still has some pockets of supply chain inefficiency.
Seriously greenSome other quick observations: the Green sup-ply chain movement is very strong there, and certainly more so currently than in the US; there is a “seriousness” about the interest in supply chain, from just how they focus during the ses-sions to how much care they take with session evaluations, that we don’t see often in the US (there were 1200 attendees, a big number rela-tively to country population); SA companies seem to frequently use supply chain academics there (and sometimes from the UK) as supply chain consultants, and if my sampling is accurate, in very hands-on, practical ways - the profs are roll-ing up their sleeves and providing very practical knowledge.
One example: a unit of Imperial that used an academic to very precisely define how many “avoidable miles” it had in delivery operations and how those could be cut by about 7%. If you would like to enter the SA market, be aware of “strike season,” which comes almost annually, and forces companies into a number of mitigation strategies before and during.
I also saw some excellent sessions:
28 Supply Chain Today August 2011
Back to the boardRudi van Schoor, a manager at SABMiller ’s South African operations, told an interesting story on how the company’s move to more sophisticated supply chain planning and scheduling software generated some important lessons during imple-mentation. The new software gave it the power to build increasingly detailed models of what would represent optimized production and in-ventory plans. But as variables and constraints were added and added, not only did the project get delayed, it also became increasingly muddled about what was really happening in the model.
Almost unheard of, Schoor and team went back to the board, which had pushed the project to deal with rising costs amidst growing complexity, and said the already late project needed to be put on hold and rethought. That took guts.
SABMiller then went back to really understand the relationships between variables and constraints and how they impacted the final plans. Turns out that many of those that had been added didn’t really impact the final result. In the end, by re-casting a simpler and better understood model of its production operations, the company achieved
the results it originally sought. It’s better to be “mostly right than precisely wrong,” Schoor noted. Very good. More detail on this in On-Target soon.
Summing up trendsProfessor Nick Binedell of SA’s Gordon Institute of Business Science gave an excellent and en-tertaining presentation that did a good a job as I have seen in summarizing an impressive amount of detail about business and demographic trends across the globe. Let’s just say there is a lot to know. I don’t know if he invented the concept, but I liked his “3 C’s” of pressure facing compa-nies today: Change (increasing at a more rapid pace), Complexity (likewise growing rapidly) and Competition (growing and global).
One among a number of key points: the attrac-tiveness in terms of clearly growing demand from emerging markets will largely only be realized by innovations in product and supply chain to meet the different needs of those customers, of which low cost is key. It will be difficult for Western companies to think that way - “you are what you eat,” Binedell said. So, success may depend on “appropriating” local innovation through acquisitions and partnerships. A grow-
GREENING THE SUPPLY CHAIN
Supply Chain Today August 2011 29
GREENING THE SUPPLY CHAIN
ing number of Western companies understand this, he said.
Averting a power crisisPharmaceutical and over the counter medicine maker Adcock Ingram face an unusual problem - after being spun out from a parent company and then acquiring existing DC space, turns out the local utility could not deliver the power needed to drive the required new air conditioning sys-tem. This was a crisis that needed to be solved in just four months, said Kirk Nash, and every solution initially considered, from solar panels to making blocks of ice at night, had major issues. Finally, the company found a solution called Variable Refrigerant Volume technology, which has been used successfully in office buildings but never a DC.
Taking a huge risk out of necessity, Adcock went with system, combined with changes in lighting systems, installing a building management sys-tem, making changes in battery charging, etc. The fortunate result was a huge success that reduced total DC power consumption in half as needed, and saving huge numbers of rands in electric bills, so much so the company is installing
VRV in another DC without the power delivery constrains. More here.
Brian Maskell of US company BMA Inc. absolutely convinced me that most accounting systems not only do not well support Lean operations, they can be the actual enemy of Lean in the way they push towards siloed efficiencies rather than holistic ones. Where are “value streams” in the general ledger or management reports, to take an easy example? I was a little less clear on what made a “Lean accounting system,” or rather in some ways not sure if most large companies could ever get to Maskell’s prescriptions, such as just getting rid of the work order on the shop floor. Still, he said Boeing has in fact eliminated some trillions of IT system transactions annually in its production operations through such an approach. We will pursue this in more detail.
There was a lot more, but I am out of space. I used the invitation to revise for my presentation of my list of “Supply Chain Megatrends” for 2011. You will see those soon here.
Had a great time with a great crowd - would love to go back, and encourage you to take the opportunity if you get it.
30 Supply Chain Today August 2011
The event at Koedoespoort was appropriately kicked off by Ian Thomas, the well known motivational speaker, who presented an account of how lions, the only cats that
hunt in teams, can be compared with how busi-nesses operate in teams. The success of the team comes from the individual and the success of the individual is because of the team.
Transnet Rail Engineering, a division of Transnet Limited, is a R9 billion a year business which carries out in-service maintenance, refurbish-ment, upgrade and manufacture of locomotives, coaches and wagons.
Launch of School of Supply Chain
EDUCATION
The fifth of July saw the launch of the School of Supply Chain by Transnet Rail
Engineering (TRE). The project has the title of Pride, standing for Personal Responsibility
in Delivering Excellence.
Climbing the ladderWorking from the premise that many tertiary aca-demic qualifications were not relevant to TRE, the School will rely heavily on existing qualifications from professional societies, and these will be mandatory for promotion. In addition, the School will write and conduct some courses in-house, including e-learning. These will cover specific TRE business strategies, policies and procedures.
Career progression in logistics and procurement can be summarised as extending from picker/packer to planner to logistics manager. The offering of the school starts with role-based induction pro-grammes for those newly appointed or promoted, followed by training programmes, whether cycle counting or master planning of resources, leading to the assessing of learners to award competency.
Pottie Potgieter, the Chief Operating Officer at TRE, traced back the historical progress of supply chain management in the organisation from when the stores was a dumping ground for personnel from other departments, and inventory was of no concern. Eventually there was an MRP II system, and then ERP, with recognition of the importance of working capital, but never any focus on people. Now, some R90 million a year will be spent on training.
The message being sent to prospective learners is “Hunting down world class competency- Join the pride!”
Transnet Rail Engineering, Dimakatso Rakole Tel: 012 391 1425 Email: [email protected]
The school would provide critical support to the National Growth Plan
Richard Vallihu, Chief Executive of TRE, told Sup-ply Chain Today that the school would provide critical support to the National Growth Plan which was based on the localisation of manufactured products, and also build on the company’s exist-ing SAP and Lean Six Sigma projects.
Kea Mpane, Head of Logistics at TRE, explained that this is a virtual school within the School of Engineering, which has previously focused on engineering and technical skills. In the context of an aging work force, TRE has identified the need to raise the skills levels of all logistics, supply chain and customer service employees.
The school will write and conduct some courses in-house, including e-learning
Supply Chain Today August 2011 31
RELOCATION
Clover’s range of quality value-added dairy and non-dairy products is delivered through one of the largest ambient and chilled distribution networks in southern Africa.
The Board and management of Clover have identified key value-enhancing capital projects to redress historical inefficiencies in the distribution network, increase profitability and expand capac-ity to support current and future growth plans. The primary value enhancing optimisation and expansion project intends to relocate production facilities closer to milk sources in order to reduce distribution and related costs and expand the ca-pacity of key distribution centres and warehouses in order to create sufficient capacity to support current and future growth.
The Coast is ClearClover Board has approved capital expenditure programmes to the value of R277 million in addition to Project
Cielo Blu, bringing the total amount of capex programmes to R627 million. Business cases were presented and approved for projects including the relocation of Clover’s cheese manufacturing facilities to the coast,
increased collection capacity in certain regions and various value added packaging initiatives.
Project Cielo Blu also intends to relocate the Johannesburg Central beverages production plant to the Midrand (Clayville) facility, optimising Clo-ver ’s primary distribution and warehousing costs and realising significant production cost savings.
Increased capacityTo address distribution capacity constraints, Clover intends, as part of Project Cielo Blu, to expand the capacity of the distribution platform by increasing aggregate chilled capacity by ap-proximately 22% and aggregate ambient capacity by approximately 46%. Benefits are expected to flow from, inter alia, returning service levels to 97% and a more efficient use of primary distri-bution vehicles.
The company estimates that Project Cielo Blu will require up to R350m to implement, over the next four years.
Clover College Hill 011 447-3030, Frédéric Cornet 083 307 8286, Morné Reinders 082 815 1844, www.clover.co.za
Project Cielo Blu aims to relocate certain production facilities closer to the source
About Project Cielo Blu Project Cielo Blu aims to address two constraints for the current business:
1. Historical structural inefficiencies in produc-tion resulting from previous regulations enforced by the Dairy Marketing Board which precluded Clover from building production facilities on the coast, other than in KwaZulu Natal. A persistent trend over the last two decades has seen the steady migration of dairy farmers to the coast, resulting in a mismatch between the source of raw materials at the coast and Clover ’s inland production facilities. This requires Clover to cur-rently ship raw milk inefficiently from the coast to inland facilities; and
2. A distribution network that is, in many instances, operating significantly above optimal utilisation. Growth in certain areas and products has resulted in over-utilisation of aggregate chilled and ambi-ent capacity. This leaves limited room for growth, has created inefficiencies in the business and is negatively impacting current service levels.
Project Cielo Blu aims to relocate certain produc-tion facilities closer to the source. This includes moving the production of long life products from inland facilities to the coastal towns of Pinetown and Port Elizabeth, thereby reducing milk trans-port cost.
Fortunately for us, he never enjoyed one.
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All Nkosi Johnsonever wanted was anormal childhood.
Supply Chain Today August 2011 33
TRANSPORT
Foremost on the agenda was the proposed tolling of Gauteng’s freeways and other national routes, as well as concerns raised over the implementation of the Aarto law
enforcement system that is due to be rolled out across the country imminently. True to the theme of this year ’s conference was road safety. Issues and initiatives debated were aimed at improv-ing the state of road safety in South Africa and across its borders.
RFA ConventionTruckers and fleet owners from across the country gathered for the 2011 Road Freight
Association Convention, held at the Gaborone International Convention Centre in Botswana, to share solutions to problems facing the industry.
The ups …Inspirational news is that SADC governments are working on imminently easing congestion at national border posts by consolidating separate operations on each side of the border into a single, shared and cooperative border post operated by both countries’ officials. Let’s hope that this move puts a stop to corruption at the border posts.
All the major truck manufacturers were represented at the 2011 RFA Convention An impressive line-up
Botswana's Minister of Transport and Communications,
Frank Ramsden, delivered a hard-hitting speech on road
safety C-Track was one of the headline sponsors of the 2011 RFA Convention
34 Supply Chain Today August 2011
TRANSPORT
Deputy minister of Transport, Jeremy Cronin, promised closer working relationships with his and other departments involved in transportation matters and even went so far as to set up monthly forums between his department and the RFA. It seemed that even while he spoke he was coming to the realisation that closer ties are required between road freighters and government.
His speech was, however, well received and his sometimes scathing comments directed at some government departments and their ability to plan (or not plan) for the future was greeted with sighs, laughs and applause.
Delegates spill out onto the lawns for a welcome tea break during the proceedings of the convention.
Dr Victor and the Rasta Rebels provided entertainment for the RFA
Convention's cocktail party
Mercedes Benz's Ian Riley
Trucking delegates were made to feel right at home at the
registration desk of the 2011 Road Freight Association Con-
vention held in Gaborone, Botswana recently
Getting down at the evening function
Supply Chain Today August 2011 35
The downs …Despite the high spirits of delegates and the proclaimed success by RFA convention organis-ers, there were some dampeners placed on the overall smooth running of the event. First and foremost was the fact that one of the major spon-sors was blatantly asked for a bribe to get their promotional items, such as brochures and small give-aways, across the border into Botswana. A bad start some might say!
Then there was the shockingly poor service that seems to have manifested itself across that part of Botswana, from rude petrol attendants (at least they’ve still got petrol), to lack-lustre hotel check-in clerks. Golfers on the first day of the event were also in for some of that ghastly Gaborone
TRANSPORT
service when they arrived, as scheduled, only to find that nothing had been organised, because, evidently someone forgot to make the necessary arrangements.
The verdict …While some delegates were sceptical that the convention would achieve anything, others re-mained upbeat and felt that by raising the same subjects year after year something will eventually be done about it. One thing is certain though - any gathering of likeminded people from all sides of the debate has got to be good for business. In addition, when government officials, like Jeremy Cronin, start pushing for a louder voice for our truckers we can be assured that some of the is-sues may finally get the attention they deserve.
Road Freight Association, Tel: (011) 974 4399, Fax: (011) 974 4903, Email: [email protected], Web: www.rfa.co.za
MixTelematics introduced its all-encompassing Intellichain system at the 2011 RFA Convention in Gaborone.
The table shuffle
Toyota's Ignatius Muthien shows off his moves on the dancefloor with
Charleen Clarke of “Focus on Transport”
Ray Schulz of UD Trucks leads proceedings
36 Supply Chain Today August 2011
Market Forum
Cross-border HIV prevention initiativeNorth Star Alliance has signed an agreement with the Southern African Development Community (SADC) to gear up cross-border HIV prevention activities over the next five years with a grant from the Global Fund to Fight AIDS, TB and Malaria (GFATM).
North Star and its partners will roll out a fleet of mobile clinics (“Wellness Centres”) to provide basic health services along with HIV prevention, STI treatment, HIV counselling and testing, condom distribution, and referrals to com-munity health facilities when required.
“The project will have a multi-country approach aimed at providing border communities and mobile populations in resource-challenged areas with access to STI treatment and HIV prevention, to put the brakes on the epidemic in the region”, says Paul Matthew, director for North Star Alliance Africa.
The Technical Adviser for SADC, Doreen Sanje, is en-thusiastic about the new venture. "We are very excited about launching this important initiative that will have a positive impact on the health and well-being of the entire Southern African region. The selection of North Star Alli-ance was determined through a highly competitive process and we look forward to working with their team to deliver significant results."
North Star is an international NGO that uses best prac-tices in supply chain management, innovations in network technology and inside knowledge of the transport indus-try to support a network of Roadside Wellness Centres (RWCs). These RWCs provide basic healthcare, HIV- and STI-related prevention and treatment services, and refer-rals to district and local health facilities, specifically for long-haul truck drivers, sex workers, mobile populations and ‘hotspot’ communities.
Robin Landis, North Star Alliance, [email protected]
Supply Chain Today August 2011 37
Major new releaseSoftline Accpac, part of the Sage Group, has announced
a major new release of Sage ERP X3’s warehouse management system – Sage Geode. Sage ERP X3 is a best of breed ERP solution for the midmarket and this new release brings greater warehouse and logistics optimisation to all compa-nies with distribution and logistics services require-ments, says Jeremy Water-man, managing director of Softline Accpac.
“Sage Geode Version 6.1 provides the tools to pro-
cess, streamline and optimise the management of the warehouse, enhancing the quality and reliability of logistics flows, providing transaction traceability, maximising warehouse floor space and improving pro-
Jeremy Waterman
ductivity. As a module of Sage’s global ERP solution, the warehouse management system can be deployed across multiple sites using Sage ERP X3,” says Jeremy.
As well as many other logistical features such as trans-parent transaction tracking both inside and outside the warehouse, people movement and space optimisation, key new enhancements of Sage Geode v6.1 include: Directive radio frequency (RF) and resource manage-ment where system tasks are directed to RF terminals based on the location of the user and the type of equip-ment being used. This provides resource management functionality to help improve productivity within the warehouse. The material management feature means stock can now be managed in both consumer units and stock units. This improvement ensures accurate warehouse management of raw materials
Sage Geode v6.1 is available from July 2011 new con-nectors have been introduced for seamless integration between Sage Geode and Sage ERP X3.
Jeremy Waterman, Softline Accpac, Tel: (011) 304-2000 Fax: (011) 304-2030, www. accpac.co.za
Market Forum
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All AXIOM-X omnidirectional laser barcode scanners require a wiring base and plug-in scan head. The scan head is available in six versions; three for high-speed barcode scanning in fast moving applications.
Accu-Sort Systems is a pioneer in advanced auto ID systems with four decades of experience deploying and supporting bar code systems, tracking and sortation solutions in various industries including transportation, logistics, manufacturing, and retail. The company is one of the world’s leading providers of high-speed laser and camera-based solutions for bar code reading as well as complete turnkey integrated systems solutions where by
were appointed as agent for AfricaSiyamuva Aluminium Marketing PTY
(LTD)
Siyamuva Aluminium Marketing PTY (LTD)
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Your new partner in Scanning and Volumizing
38 Supply Chain Today August 2011
On the MoveMarket ForumThe Port of Saldanha ushered in Captain Alex Miya as its new Har-bour Master on 1 July following the retirement of Captain Peter Stowe, a Transnet veteran of 20 years who fulfilled the role since 2004.
Captain Miya will be responsible for enforcing the regulations of the Port of Saldanha to ensure safe navigation of vessels, the security of the harbour and the correct operation of the port facilities.
Captain Alex Miya
Concargo has appointed Kaspaas Myburgh as general manager of its Refrigeration Division.
Kaspaas Myburgh
Dr Douglas Boateng has been appointed Ongoing Chairman of CIPS’s Adjudication Panel of leading best practice experts.
This team of independent and distinguished academ-ics and leading practitioners will meet during the year to discuss plus adjudicate on best practice procurement and supply chain management in Africa. Included in the panel are supply chain subject matter experts and professionals responsible for billions of Rands and USD dollar equivalent procurement expenditure and supply chain management.
Douglas Boateng
Successful track recordWhen outsourcing distribution, it is essential that fuel companies partner with transporters who are attuned to the demands and high standards of the fuel industry. Fuel companies need to sustain flexible and cost-effective transport operations in order to compete in a highly com-petitive market. As logistics is not part of an oil company’s core focus, it is easier to partner with logistics managers who can handle the burden and positively impact on the bottom-line.
In essence, the fuel supply chain follows this process: exploration, discovery, drilling, harvesting, crude oil retail, refinement and distribution.
In the past, fuel companies were in complete control of the entire process from exploration to retail. These days, oil giants are rethinking where they want to be in the supply chain. Recently, Caltex made the move to employ local distributors in the Eastern Cape with Caltex Eastern Cape Marketers (CECM). Based on their successful track record CECM have recently been appointed to a wider franchise that now extends to the inner city of East London. The company intensified its focus on higher SHEQ standards, and has optimised distribution through its partnership with JSE listed Cargo Carriers in a new joint venture called Uzuko Carriers. Cargo Carriers has established a specialist division to service this sector.
Cargo Carriers, Tel: (011) 485-8700, Fax: (011) 485-8781, [email protected], www.cargocarriers.co.za
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Supply Chain Today August 2011 39
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