+ All Categories
Home > Documents > Supply Chain Today Jan2013

Supply Chain Today Jan2013

Date post: 24-Mar-2016
Category:
Upload: promech
View: 239 times
Download: 3 times
Share this document with a friend
Description:
"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.
Popular Tags:
48
SUPPLY CHAIN JAN 2013 T O D A Y Endorsed by: CCF l CGCSA l CILTSA l CSCMP l SAAFF l SAEPA l SAPICS l SMART X l l PROOF THAT PEOPLE STILL LOVE THE PRINTED WORD l l AUTOMOTIVE HISTORY MADE IN SA l
Transcript
Page 1: Supply Chain Today Jan2013

SUPPLYCHAIN

JAN 2013

TODAY

Endorsed by: CCF l CGCSA l CILTSA l CSCMP l SAAFF l SAEPA l SAPICS l SMART X l

l PROOF THAT PEOPLE STILL LOVE THE PRINTED WORD l l AUTOMOTIVE HISTORY MADE IN SA l

Page 2: Supply Chain Today Jan2013

2 Supply Chain Today January 2013

apc

Partner with the warehouse pioneers

0861 61 61 61 www.apcstoragesolutions.co.za

in cost, operations and capacity.

For a complete warehouse solution, contact us today!

Page 3: Supply Chain Today Jan2013

Supply Chain Today January 2013 3

January 2013

Contents

Proprietor and Publisher: PROMECH PUBLISHINGTel: (011) 781-1401, Fax: (011) 781-1403E-mail: [email protected], www.promech.co.zaManaging Editor: Susan CustersAdvertising Sales: Lelanie DiamondProduction Manager: Zinobia Docrat/ Donovan VadivaluAdministration and Circulation Manager: Catherine MacdivaSubscriptions: Please email us at [email protected] if you wish to subscribe to “Supply Chain Today” at R405,00 (excl postage and VAT) per year; R1 020,00 per year for Africa/Overseas.Printed by: Typo Colour Printing, Tel: (011) 402-3468FSC (Forestry Stewardship Accreditation)

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 ac-curate reproduction, the editor, authors, publishers and their employees or agents shall not be respon-sible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Cover Story4 Slick Supply Chain

Racking & Shelving6 Energetic Storage Solutions9 Locally-engineered Storage Solutions

Cold Storage13 Quick Detection15 New Solution, New Growth

Pulp & Paper16 Paper Weight

Transfer Solutions19 Where the Tar Meets the Road

Market Forum — Unit 21 Market Forum - Unit

Trucking 27 Automotive History in South Africa28 Fuel Consumption in the Truck Industry29 Safe Transportation of Chemicals

Freight Forwarding31 Top-up Insurance - Financial Advice 33 Highest Potential is southern Africa

SSaapppicccss 35 Olé, Appletiser, Olé!

Spacial Planning 37 Twin City Spatial Planning

Distribution Centre 39 Largest of its Kind on the African Continent

Market Forum — Supply41 Market Forum - Supply

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

Also mailed to RFA members

Featured on the cover:

ScaniaScania South Africa

Tel: (011) 661-9600 www.scania.co.za

www.promech.co.za

Page 4: Supply Chain Today Jan2013

4 Supply Chain Today January 2013

COVER STORY

Slick Supply Chain

Scania maintains stockholding for older versions of its trucks

Gideon de Swardt

In order to achieve the levels of service ex-pected from one of the world’s top trucking brands, the company employs a holistic approach to its supply chain that begins at

the drawing board and ends when the truck is recycled. Although seemingly complicated, Sca-nia’s approach is simple: it’s all about customer satisfaction and customer service.

In South Africa, Scania trucks are the backbone of many companies’ supply chain operations and are renowned for their high productiv-ity in diverse areas of logistics operations. The company itself is recognised for its outstanding service levels and ability to properly support and maintain its vehicles under all circumstances. “Supply Chain

Today” speaks to Scania’s Gideon de Swardt to find out how the local operation links into the company’s global supply chain.

Operational backbone“We understand that without customers we have nothing which is why we plan our entire

global operation around providing customers with the service they need, when they need it. To do so, we start at the very beginning by develop-ing vehicles for each market sector with future

requirements in mind. In this way we are able to provide the right vehicles for the job at hand. It also ensures the economical use and reliability of our trucks because they are doing precisely the job they were designed and built for.”

Gideon explains that once an order for a new truck is received, the supply chain wheels spring into action. The carefully-planned operation runs like clockwork in order to ensure on-time delivery. Annual plans drawn up at the beginning of the year ensure the majority of stock items are in place.

Thereafter real-time data is used to refine the plan on a quarterly and monthly basis with final assembly plans drawn up on a weekly basis ac-cording to final orders received (and any other factors that may affect the assembly plant such as labour unrest etc). Final orders for parts are then placed with manufacturing plants in Sweden and Brazil to ensure complete assembly kits are available locally to meet deadlines for all new truck orders.

Continuous cycleThe delivery of the vehicle is just the beginning for Scania. Crucial for customer peace of mind is spares and parts availability. “As part of our holistic approach we also make sure our custom-ers know how to properly operate the vehicle to get the most out of it. By training their drivers,

Premium truck manufacturer Scania operates a slick supply chain worldwide that ensures owners get the vehicles they ordered in time and receive ongoing support to keep their wheels on the road.

Providing customers with the service they need

Page 5: Supply Chain Today Jan2013

Supply Chain Today January 2013 5

Scania Warehouse

Worldwide supply chain

The company employs a holistic approach to its supply chain that begins at the drawing board and ends when the truck is recycled

This type of intuitive approach ensures Scania’s time-honoured track record remains intact and bears testimony to the efficiency of its sup-ply chain. It’s also one of the reasons why the company has won so many new customers in the extra heavy commercial vehicle segment. “Once owners experience our service levels, they seldom look back. The majority become fiercely loyal supporters of the Griffon badge,” Gideon concludes.

Scania South Africa, Gideon de Swardt, Tel: (011) 661-9600, Email: [email protected], www.scania.co.za

we show customers that trucks driven by well-trained drivers are able to last longer and suffer far fewer breakdowns. This has an additional positive spin-off for us because as a result the vehicles remain reliable and fewer spares and parts are required.

“Globally it means that more of our trucks follow predictable cycles and our after sales supply chain becomes easier to maintain which is partly why we are able to meet up to 90% of all parts requirements directly off the shelf. Even with thousands of our trucks on the roads (some dating back decades), we remain renowned as a company with one of the best parts availability records in the industry,” Gideon adds.

On the rare occasion that parts are not available off the shelf, Scania relies on its global network to locate the closest part and airfreight it directly to South Africa (if urgent). “We are so dedicated to on-time parts delivery that if a truck is left standing for longer than usual as a result of parts unavailability, we will give customers a loan truck to ensure they do not suffer losses as a result.”

Well supportedIn many instances however, roadside problems can be solved on-the-spot by drivers with the as-sistance of Scania’s 24-hour call centre service. In the majority of instances, the call centre is able to guide drivers to diagnose and address the problem themselves. In instances where the truck needs to be taken to a workshop, Scania technicians will ensure the workshop is pre-notified and that parts required for the repair are despatched if necessary.

COVER STORY

Page 6: Supply Chain Today Jan2013

6 Supply Chain Today January 2013

RACKING & SHELVING

T he name “Spode” originated during Shaun Keppler’s international downhill mountain bike racing career. With a bunch of friends and fellow competitors it was a catchword

used to describe a composed and smooth race with above average or excellent performance. Other riders who did not conform to accepted ways of riding, dressing or behaving were not “Spode”. And so the phrase was coined.

Years later, when Shaun returned to South Africa after competing abroad as well as working in the United Kingdom for a FTSE Top 30 company as a successful sales manager, he decided to start his own business. Shaun chose the name Spode to represent doing business in his own distinctive way and modelled it on the experience he had gained. Spode Storage was born.

“I took the expertise I had gained, plus a lot of enthusiasm, and put it to work delivering per-sonalised logistics and warehousing solutions to

Spode [Definition] – To do something differently to arrive at a better result, out-of-the-box thinking.

Energetic Storage Solutions

Shaun Keppler of Spode Storage

all industries. Although I decided to specialise in storage and material handling, my team and I are prepared to take on any related project and do it better than anybody else,” Shaun says.

Even offering same or next day service if required by our clients

6 Supply Chain Today January 2013

Page 7: Supply Chain Today Jan2013

Supply Chain Today January 2013 7

A recent racking installation undertaken by Spode Storage

Upwardly mobile“Since starting the business in 2007 we have grown on average more than 100% year-on-year which means we must be doing a lot of things right. We have also grown our footprint to three branches, with our head office based in Durban and offices in Johannesburg and Pietermaritzburg Since then, the company has managed to entrench

itself in the marketplace as a significant player in the provision of storage solutions throughout southern and central Africa.”

According to Shaun a number of multi-national companies have grown to trust their service and have increasingly begun contracting them to undertake installations throughout South Africa and across borders into Africa.

An innovative shelving scheme being installed by Spode Storage

RACKING & SHELVING

Supply Chain Today January 2013 7

Page 8: Supply Chain Today Jan2013

8 Supply Chain Today January 2013

Founded during the height of the global recession, the company has never had an easy time and is used to trading in a tough environment. Accord-ing to Shaun the market is very competitive and companies have to be “on top of their game” in order to succeed.

“We differentiate ourselves through providing top class service and fast turnaround times even offering same or next day service if required by our clients. Despite fierce competition, there is a lot of work out there especially for mezzanine floors, as companies go up in order to increase useable floor space.

TrendsHe continues that demand for locally-made product is still high. Although a number of large retailers are looking at overseas options it is difficult to compete with locally manufactured product in terms of delivery, turnaround times and quality of products and as a result, Shaun expects little to change in the short-term. Similarly he expects demand for racking to remain high and is bank-ing on surging demand for consumables to make up a significant part of the business in future.

“As a result of our positive attitude and work ethic, we have learned to make the most of every opportunity given to us. We have had to become innovators and are leading a number of fresh ideas to the market place. This has allowed us to gain the respect of our customers and as a result word is spreading and we continue to grow our market share” concludes Shaun.

Spode Storage, Shaun Keppler, Tel: 086 100 4226, Fax: 086 624 5078, Email: [email protected], Web: www.spodestorage.co.za

RACKING & SHELVING

ROLLER BLINDS ROLLER BLINDSROLLER BLINDS

WELDING SCREENS

STRIP CURTAINS

INSULATED IMPACT DOORS

A network of agents throughout South Africa

ensures excellent technical and installation

support, and quick delivery times.

Page 9: Supply Chain Today Jan2013

Supply Chain Today January 2013 9

RACKING & SHELVING

W hile the majority of local suppliers opt to ship materials from overseas, Wadeville-based manufacturer Acrow Racking and Shelving, Scaffolding

and Formwork continues successfully to produce its own products that meets the requirements of its customers across many different industries in South Africa and abroad.

“Supply Chain Today” speaks to company director Sandra Moya, who shares some of the secrets of the company’s ongoing success and reveals why they have chosen a different path from many others. Rather than being satisfied with merely following international trends, the company ac-tively innovates and brings solutions to the market which gives customers more choice when selecting products. This approach has allowed the company to go from strength-to-strength and has led to the growth of its branch network across the country and even abroad to the European strongholds of Italy and the UK.

Local visionAcrow’s products are being exported to all cor-ners of the globe from Europe, the Americas and Australasia to the entire African continent and elsewhere wherever shelving and racking is required. According to Sandra the company is continuously expanding its geographic footprint, but it remains in South Africa where the innova-tion and new product development takes place.

“By responding to the requirements of the in-dustry we have been able to adapt and change our products to add real value to our offering. Whether the requirements are for easier to erect products or more cost-effective offerings we find solutions based on innovation and the appropri-ate use of technology. In this way we maintain a quality edge while giving different industries what they need.

“Although we never have, and never will, compete on a price cutting basis, we adopt a fair-price policy whereby our customers pay for a quality product that exactly meets their requirements. Sometimes it may come at a slight cost premium, but at least they know the products are properly manufactured using high-quality materials,” San-dra explains.

Thriving factoryVisitors to the factory will easily see why the company competes so well on the local and international stage. On the floor the different stages of manufacture are well ordered and fol-low a logical flow from raw materials through the different processes. Each production line is meticulously kept, and tools and equipment are neatly placed conveniently near the 300 strong workforce locally.

Across more than 30 000m², the picture remains the same, with a clean neat environment and im-pressive volumes of products being manufactured at any given moment. The facility also boasts an array of productivity-boosting machines that enable high volume production while keeping manufacturing costs comparatively low. These

Locally-engineered Storage Solutions

Although we never have, and never will, compete on a price cutting basis, we adopt a fair-price policy

Page 10: Supply Chain Today Jan2013

10 Supply Chain Today January 2013

RACKING & SHELVING

include an assortment of CNC bending machines, roll formers, presses, press-brakes automated panel benders to form metal, as well as fibre laser cutting and automated welding machines to ensure high precision fitment of all racks and shelves.

Beyond the manufacturing facility, a fully-equipped research and development centre, complete with prototypes and models, stands ready to prepare the next generation of products from Acrow. It is also at this point where the investment in research pays off and enables the company to tailor-make

Punching machine

products to the requirements of an industry or an individual company considering all the fac-tors that will affect the success of the product.

Local is lekker“At face value a rack is a rack and a shelf is a shelf, but you have to go beyond that to com-pare products. For example, we have found that most imported products are not built with South African conditions in mind. In European, American and even Eastern markets the requirement is for lightweight or cheap products. Back home we usually have less well trained warehouse or logistics staff and shelves and racks are usually subject to more than the average amount of bumps, knocks and overloading situations.

“That is why for the past almost 70 years we have produced racking and shelving solutions especially for our own market. Unknown to a casual buyer, our racking and shelving solutions are researched and then developed in accordance with local condi-tions and requirements. This may result in extra reinforcing or bumpers on columns that are in the path of forklifts, or it could even be designed to withstand far greater loads in anticipation of overloading scenarios, what-ever the outcome we will have researched it and then designed and built it appropriately,” says R&D specialist, Enrico Moya.

He adds that all products manu-factured in the factory are tested to ensure conformance to the

company's ISO accreditation and to meet specific safety and other requirements stipulated by cus-tomers. Only once all the design, manufacture and quality standards have been met, are the products sold to customers.

Hands-on approachWhile the main aim of the racking and shelving division is to distribute manufactured products and accessories to the market, the company still maintains an installation division to undertake large-scale and precision installations. “It provides us with valuable feedback which agents and consultants often cannot provide us. We believe it keeps us in touch with the market and with prevailing market trends and, in this way, allows

May result in extra reinforcing or bumpers on columns that are in the path of forklifts

Page 11: Supply Chain Today Jan2013

Supply Chain Today January 2013 11

us to adapt and change our offering to meet customers’ ever changing requirements,” adds Sandra.

The same approach to customer satisfaction that has kept the company competitive through seven decades, has also led to some of the country’s most fastidious retail and industrial buyers specifying only their prod-ucts. Customers include the likes of Game, Foodlovers Market, Builders Warehouse, Makro, Cashbuild, RTT, Bidvest among others, as well as a host of cash and carry stores, warehouses, DCs and logistics centres throughout the world.

“For us the recipe of our success is providing the best service possible and maintaining positive relationships with all our customers. We also provide them with an immediate response, quick turnaround times and the best technology to assist with planning and implementation of any job – it’s quite simple really,” concludes Sandra.

Acrow Racking and Shelving, Scaffolding and Formwork, Sandra Moya, Tel: (011) 824 3358, Fax: (011) 824 1527, Email: [email protected], Web: www.acrow.co.za

RACKING & SHELVING

Painting

Logistics

Contact Lelanie Diamond on Tel (011) 781-1401, Fax (011) 781-1403 or

E-mail: [email protected] book you advertising space

Page 12: Supply Chain Today Jan2013

12 Supply Chain Today January 2013

energyEnergy Swiss Confederation

Federal Department of Economic Affairs FDEA

State Secretariat for Economic Affairs SECO

Page 13: Supply Chain Today Jan2013

Supply Chain Today January 2013 13

COLD STORAGE

T he storage facility offers floor space of 40 000 m², is 20 metres high and is divided into three temperature zones. The products stored in the first zone

are kept at normal room temperature. In this area, 3 400 storage spaces are avail-able. The cooling zone which is kept at 0°C, offers space for 1 600 pallets – just as much as the deep freezing area, which has a temperature of -30°C.

Operate faultlesslyThe storage spaces are served by dynamic, high-bay storage devices (RGBs) and for these to operate faultlessly, even in these ex-tremely variable climatic conditions, they must be equipped with a high performance and reli-able sensor system. Their transportation paths are measured and positioned by two Leuze AMS 200/120 laser distance measuring devices; one is used to control the driving movement and the other to control the lifting movement.

Between the RBGs and a base station, the data is transmitted optically by Leuze DDLS 200 optical data transceivers – without any mutual interference with the Leuze AMS 200 sensors. Leuze 46B sensors monitor the positioning of the cargo without difficulty.

The AMS 200 Absolute Measurement Systems, which are mounted in x- and y- axis at the height of the running gear, operate with the highest ac-curacy and are easy to use and offer maximum connection convenience.

Current velocityFor calculating the absolute position of the RBG and the lifting unit, reflectors that reflect the laser light to the AMS 200 have been fitted at the end of the respective track. Because the positioning calculation occurs very quickly, these sensors can implement the high dynamics of the RBG drives.

Calibrated positions are reproduced with milli-

metre precision up to an operating range of 200 metres. An absolute accuracy of ± 2 millimetres is achieved.

Using the data of the position change per time unit, the software of the AMS 200 calculates the current velocity. This way, the velocity can be monitored at the same time – a special feature provided by Leuze sensors.

Distance sectorsTraverse paths can be divided into four different distance sectors. Each sector can be configured with a separate velocity. The device monitors these parameters autonomously. If the calibrated velocity is exceeded or not reached, the device reports this to the control.

As a result, this high-bay warehouse was able to reduce the complexity of mechanical velocity-control mechanisms or buffers, which are able to shut down the devices from full speed, for the high-bay storage devices by approximately 30 percent. This velocity control fulfils the re-quirement for a second independent measuring system, which is necessary for implementing this buffer reduction.

The sensor issues pre-failure messages in good

Quick Detection A nine lane, automatic, high-bay warehouse in Spain with 6 600 pallet storage spaces

used to store food, even at the inhospitable ambient temperatures as low as -30°C, uses sensors to position the storage and retrieval

units for high-bay warehouses, optically transmit data and thereby monitor safe

pallet positioning.

Using the data of the position change per time unit, the software of the AMS 200 calculates the current velocity

Page 14: Supply Chain Today Jan2013

14 Supply Chain Today January 2013 Supply Chain Today August 2012 14

COLD STORAGE

time in the event of impermissible temperatures, soiled optics or decreased power of the laser diode. This facilitates timely maintenance and troubleshooting depending on the requirement, and thus increases plant availability.

Different versionsIn this facility the RBGs have been equipped with two different device versions: with and without heating. With an integrated heater, the AMS 200 can also function in the deep-freeze zone without restriction.

For communication between the RBG’s, the DDLS 200 optical data transmission system transmits data free from wear and practically free from in-terference. It consists of a pair of devices which communicate bidirectionally, as each device operates as a transmitter and receiver unit using different frequencies.

Able to shut down the devices from full speed by approximately 30 percent

The DDLS 200 systems stand out due to their speed, interface multiplicity and wide operating range of up to 500 metres. It is a totally trans-parent system. Hence, the Profibus masters do not need to be configured.

Side by sideWhen operating in the deep freezing area, the optics of this device are also heated so that trouble free operation can be ensured. The single hand adjustment represents a further advantage: in “adjust” operating mode the LED indicator of the device positioned opposite is transmitted to the device on the operator side.

The optical data transmission of the DDLS 200 is done via invisible infrared light, whereas the AMS 200 distance measurement devices work with laser red light. Thus, both systems can operate side by side without interfering with each other.

Gerry Bryant, Countapulse Controls, Tel : (011) 615-7556,www.countapulse.edx.co.za

In case of shelving emergencies ... Call us.Universal Storage Systems, through the use of its

own research technology and highly trained engineers - plus access (through world-wide relationships)

to international expertise - has a reputation of being able to find solutions to most

industrial shelving problems. Universal, one of South Africa’s leading manufacturers of

industrial, commercial racking and shelving, markets a wide range of warehousing and

storage solutions.

For further information visit us on the internetwww.universal-storage.co.za

thinc 6356/3

Page 15: Supply Chain Today Jan2013

Supply Chain Today January 2013 15

C CS has identified numerous benefits of using the software to manage its refrig-erated warehousing operations, includ-ing more efficient service, less costly

domestic and international operations, as well as supporting new opportunities for growth. The custom-programmed management software CCS previously used in its refrigerated warehouses was expensive to upgrade and maintain. It also lacked capabilities that the company felt would be critically important to its customers going forward under increasingly stringent regulatory and economic conditions.

Problem-solvingTeams from supply chain execution software solutions provider Accellos and its Johannesburg partner, Dovetail Business Solutions, implemented Accellos One 3PL on independent servers at each of the six refrigerated warehouses over a single weekend. Most of the functionality is standard among the several sites, but Accellos also custom-ised the software to serve unique requirements of each facility.

Key benefits of the software include a stable logistics platform; standardised functionality; eVista customer self-service portal; extensive RF integration; fast, precise directed putaway and picking; flexible rating capabilities; powerful re-porting capabilities; current inventory information; customer service options; weekend install, six discrete sites; and strong local partner support.

SuccessThe company maintains closer control over its customers’ inventory through Accellos’ refined cycle counting capabilities, which enable it to set up its rules by customer, by type of audits,

by warehouse sectors and spaces and so on.

“We do these counts as often as possible, as regular and continuing stock counts provide us with certainty over the accuracy of our records and can highlight problems with stock that we need to bring to customers’ attention. We scan the warehouse contents with the RF gun, the Accellos software makes the comparisons, and we adjust our records as necessary,” says general manager of the company’s Cape Town facilities and executive in charge of the 3PL upgrade, Francois Dowling.

In acquiring the Accellos software, CCS was not only considering functionality, he says. Rather, the company wanted a way to manage the business better and to support its growth plans. Particularly noticeable changes include dramatically improved visibility to operations, the ability to calculate individual productivity and the ability to identify the causes of delays if they occur.

“It is easier to collect and manipulate management data and importantly, we can provide customers with faster, easier access to information that is vital to their operations. Moreover, we have a flexible, fully configured system at each controlled temperature 3PL warehouse site, one that will not find us accruing additional costs with every modification and new requirement,” says Francois.

Extensive spreadA subsidiary of South Africa’s historic Oceana Group, CCS is the largest 3PL provider in Africa, serving importers and exporters through three freezer and controlled-temperature warehouses in Cape Town: one in Durban, one in Johannesburg and another in Walvis Bay, Namibia, as well as a number of ambient temperature facilities.

Commercial Cold Storage, Francois Dowling,Tel: (021) 446-6560, Email: [email protected], www.accellos.com

Implemented Accellos One 3PL on independent servers at each of the six refrigerated warehouses over a single weekend

New Solution, New GrowthLocal third party logistics provider Commercial Cold Storage (CCS) has upgraded from costly public refrigerated warehouse software to the highly standardised Accellos One 3PL solution, improving efficiency, reducing operational costs, and supporting new growth opportunities.

COLD STORAGE

Page 16: Supply Chain Today Jan2013

16 Supply Chain Today January 2013

A s a printer of numerous monthly and weekly publications, some of which boast runs of between two and four million copies, along with various high-

Paper Weight

run promotional printed items, Seculo’s paper requirements are impres-sive. Pieter explains that paper forecasts are cal-culated monthly, using a formula to determine sizes and tonnage required.

Reel timePaper orders are sent to Mondi, which outsources transport to a number of specialist hauliers us-ing 18-wheeler flatbeds. Reels are delivered in batches of 30 tons at a time, with an offloading process that can take up to two hours. Each reel measures about a metre in diameter and weighs in excess of 480kg. Im-ported reels of gloss paper measure up to 1.2 metres in diameter and weigh over a ton.

“We work around three loads per day with a cut-off time of 4.15pm to ensure that the process doesn’t continue into the night,” Pieter tells us. The company uses two forklifts with specialised paper clamps to transport reels into the basement storage facility. Another forklift is available for palletised items.

Sheet allowanceIn addition to delivery of reels, stock management comprises collection of waste paper by Mondi

PULP & PAPER

Today’s scoop can become yesterday’s news in a matter of hours

Damage to the reel can result in it being unusable on the printing press

With some weighing in excess of a ton, paper reels are more than the average stationery cupboard can accommodate

Those who think the print medium is dead often find themselves

eating their words after a trip through a printing house. When

Pieter Terblanche takes “Supply Chain Today” through the works at Seculo Triweb

in Selby, towering reels of paper are a tangible reminder that people still love the

printed word.

Page 17: Supply Chain Today Jan2013

Supply Chain Today January 2013 17

PULP & PAPER

Keep things running so smoothly that the client thinks the process is simple

Paper clamp attachments on forklifts make manoeuvring reels more manageable

on a weekly basis. Every print job includes a sheet allowance for set up, when colours and registration are calibrated prior to commencement of the run.

With numerous jobs running con-currently on vari-ous machines, this paper can quickly add up to tons if not cleared regu-larly and Pieter acknowledges that tempers can fray if waste paper ac-cumulates due to delays in collec-tion.

Water tight“Du r i n g p eak printing periods, storage can be a problem, so we somet imes store rolls on the print floor,” he adds, telling us that regulations limit the height to which paper may be stacked within an area. “We have plans to build a new warehouse shortly to get around this problem. We’l l also overcome the issue of water-damage to the reels due to expo-sure to rain during offloading, since we don’t presently have facilities for

Page 18: Supply Chain Today Jan2013

18 Supply Chain Today January 2013

PULP & PAPER

protect paper from rain with waterproof ‘skirts’ that I designed to fit over the reels. Obviously this isn’t an ideal situation,” Pieter admits.

Attention to water issues is also necessary right from the start of the loading process, since rain can have an effect on the paper while in transit. “It’s important that the reels not only be covered securely, but also that they be lifted off the bed of the truck using strips of rubber to allow run-off,” he says.

Hot off the PressIn addition to water problems, reels are vulnerable to bumps and tears, which can cause trouble on the printers. “If the core of the reel is misshapen it won’t fit onto the press,” explains Pieter. “Torn edges are likely to shear under the pressure of the high speeds at which the paper runs through the machines, causing costly delays to the process.”

With tight schedules being the order of the day, this can be disastrous for a printing firm, where today’s scoop can become yesterday’s news in a matter of hours. “Our client’s have deadlines to meet and they’re not interested in the problems we may have behind the scenes.

“We sometimes call ourselves Seculo Fish & Chips because some companies seem to think printing is a bit like the fast food industry,” he smiles. “They drop off the material and expect the job immediately without being aware of the many factors that influence production. But prompt turnaround is part of the service we offer and if we can keep things running so smoothly that the client thinks the process is simple, then we’ve done our job well.”

Pieter Terreblanche, Seculo Triweb, Tel: (011) 496-1650, Fax: (011) 496-1563, Email: [email protected], Website: www.seculo.co.za

an undercover loading bay.”

Wet paper swells and sticks together once it dries rendering it unusable and costing the company thousands for every wasted ton. “Currently, we

Page 19: Supply Chain Today Jan2013

Supply Chain Today January 2013 19

TRANSFER SOLUTIONS

Where the Tar

Meets the Road

The transition between warehouse and transportation fleet is a weak

point in the armour of many logistics processes. At this point temperature fluctuations,

contamination and breakages can ruin consignments, while docking bays also provide the best spot for pilfering to take place.

Stab-A-Load’s Butzbach stacking door with polycarb viewing panels allows natural lighting to enter the premises

Stab-A-Load LX 610 Dock Leveller

S ales director Dean le Roux of Stab-A-Load in Alrode tells “Supply Chain Today” that both the warehousing and transport industry has changed dramatically in the nearly 20

years since they began operating. World-class solutions are being sought in South Africa and changing business requirements make quality solutions the prime focus rather than price.

“Our customer base comprises major players across all industries and our focus on quality rather than quantity has paid-off. Companies like Shoprite, Woolworths, Spar, Pick n Pay, BMW, Audi, Bidvest and hundreds of other top-notch companies do not hold back on quality and specify Stab-A-Load solutions in their operations,” he adds.

Transition solutionWhile Stab-A-Load built its reputation and derived its name from ‘stable-loading’ and unloading

Changing business requirements make quality solutions the prime focus rather than price

Page 20: Supply Chain Today Jan2013

20 Supply Chain Today January 2013

TRANSFER SOLUTIONS

Sales director, Dean le Roux operates the demo lift inside the company’s showroom

Stab-A-Load loading lift table

systems, dock levellers and scissor lifts, it has subsequently expanded to include specialised doors, dock protectors and a number of warehouse and transfer solutions to suit the requirements of different industries.

The transition area in a warehouse normally begins with a door. These serve a multitude of different uses from securing stock, to providing tempera-ture barriers and preventing contamination from outside. “This represents the starting point for us and we have a wide variety of industrial and warehouse doors, in a wide range of configura-tions, to provide customers with the right closure for their specific application”, explains Dean.

“Requirements range from high speed roll-up doors to side-to-side folding door systems that allow immediate clearance of the entire vertical

area for forklift masts etc, to insulated doors and more. We also provide cool room, fire, sectional and stacking doors that offer the right access solutions for the job required,” Dean elaborates.

All round protectionHe adds that goods are at their most vulnerable at the docking station where openings can alter the internal environment or allow access to pil-ferers. Dock shelters introduced by Stab-A-Load are designed to form a seal around the vehicle’s body and the door opening. In this way a bar-rier is formed between the inside and outside environments and virtually all risks are negated.

“Our foamside dock shelter provides protection for all eventualities. It is designed to form a seal between the door opening and the truck body and is built strong to provide ample protection against rough handling and off-centre trailer impacts. The seal makes it virtually impossible for stock to be lost or deliberately passed through openings.”

Equally important is to ensure speed of load-ing as well as the safety of crew by providing a ‘level playing field’. A wide range of equipment is available depending on the requirement. Dock levellers, edge of dock levellers, vertical store dock levellers and scissors lift tables all have their place in the modern warehouse depending on the requirements.

Family tiesAt face value the business is all about supplying doors, closures and loading equipment to the market, but for Dean and the staff of Stab-A-Load it’s also about finding real-world solutions to customer’s requirements. The family-owned business has a close-knit team of sales and ser-vice staff with an ever-growing customer base. On any given day, 20 of its service vehicles are on the road servicing its large installed base of doors and loading equipment.

The company’s vast new premises house manu-facturing lines for all locally-built products, while assembly lines are in place for imported and customised items. The modern reception area houses a large and well appointed showroom, but it’s taking a close look at the company’s op-eration where customers can see equipment in working applications throughout the company’s own warehouse and loading areas, that the tar hits the road.

A quick tour of the manufacturing plant, spray shop, welding, assembly and other plants shows that the work is carried out in a spotless environ-ment where each tool has its place and every person on the floor has a sense of pride in the workmanship they produce.

“Yes, we supply product but ask us a difficult question and see how we’ll come up with a solution every time. We’re a truly South African company with a world-class work ethic and the back-up service to boot,” Dean concludes.

Dean le Roux, Stab-A-Load, Tel: (011) 900 3909, Email: [email protected], www.stabaload.co.za

Goods are at their most vulnerable at the docking station where openings can alter the internal environment or allow access to pilferers

Page 21: Supply Chain Today Jan2013

Supply Chain Today January 2013 21

Sensor manufacturer Wenglor has expanded its product range to now include light curtains for measuring tasks that cover a wide variety of applications such as in the field of logistics, woodworking and automotive.

The light curtains work on the light barrier principle: the switching output is activated depending on which and how many beams are interrupted by the object. An analog output reads out the measured values as a cor-responding voltage (0 to 10V) or current (4 to 20mA).

The light curtains can be used for web edge control, height and position monitoring and for detecting and measuring objects and contours. They can be set up quickly and intuitively with the help of a menu-driven OLED display directly at the housing without additional software or external programming devices. Interrupted beams are displayed as a bar graph diagram which simplifies initial start-up and alignment of the light curtain, as well as quick error diagnosis.

With two digital switching outputs and an integrated analog output, objects are not only checked for presence but their dimensions are ascertained as well. Output data is made available via an IO-link interface ensuring convenient parameter configuration and quick diagnosis.

Anastas Schnippenkotter, ASSTech Process Electronics & Instrumentation, Tel: (011) 708-9200, Email: [email protected]

When Plascon needed to lower costs associated with storing raw materials and packaging off-site, APC Stor-age Solutions SA, designed and built them South Africa’s highest density pallet warehouse, and the world’s larg-est non-automated self-supported warehouse to house materials on site.

“By opting for the self-supported warehouse concept, where the actual racking installation supports the build-ing’s exterior, lighting and other rigging, Plascon was able to save 30% of its warehouse procurement budget by not using standard civil construction methods. Furthermore, having raw materials on site has reduced transport costs, as well as expenses associated with additional, off-site storage facilities,” says Fred Albrecht, managing director, APC Storage Solutions SA.

Highest Density Pallet Warehouse

Reaching up 23m, the warehouse had to be built on only 1 310m2 at Plascon’s Luipaardsvlei manufacturing facility in Krugersdorp to facilitate the easy storage, retrieval and order preparation for over 2 300 specialised pallets.

With the new warehouse configuration, raw materials, such as pigments, solvents and other additives, are stored inside the self-supported warehouse upon arrival at the facility. When the factory requires certain ingredients, a turret truck picks and moves pallets to the live storage section. The live storage racking system gradually feeds raw materials into the manufacturing plant. Pallets are picked at the production plant-facing end of the roller conveyor system, and then re-

stocked at the warehouse-facing end.

“We also supplied a live pallet racking system – where items are fed in one end, accumulated, and then picked at the other,” says Fred. This makes up the interface between the warehouse and production plant, and helps with order preparation and stock rotation. It also helps prevent warehouse staff and production plant staff from moving freely between the warehouse and production plant, improving general stock control.

APC Storage Solutions SA has further completed the design of a second phase warehouse installation that will house final paint products in a fully-automated warehouse.

Fred Albrecht, APC Storage Solutions SA, Tel: 0861 61 61 61, Email: [email protected]

MARKET FORUM

Page 22: Supply Chain Today Jan2013

22 Supply Chain Today January 2013

abe Construction Chemicals’ abe.screed PU flooring system has been specified for a wide variety of warehouse and factory flooring projects throughout South Africa.

abe.screed PU, a three component polyurethane mortar, is just one of a large range of flooring products supplied by a.b.e. The range includes over 30 lines, covering various facets of flooring such as coatings, screeds, case hardeners, tile pointing products, adhesives and dry shakes.

Stephen Rault, a.b.e.’s GM: Marketing, says abe.screed PU provides a heavy-duty, thermal shock-resistant, hard-wearing floor finish with exceptional chemical resistance. The product is ideal for use in wet and dry factory process areas or warehouses where the floors may be subjected to hot fluid spillage and steam.

Stephen Rault, a.b.e. Construction Chemicals, Tel: (011) 306-9000, www.abe.co.za

Warehouse

Flooring

MARKET FORUM

To Their Fleet

Western Star at Mercedes-Benz South Africa (MBSA)

Barloworld Logistics, the transport operator, has a long-standing relationship with PPC Cement and this five year contract extension, will take the relationship to a milestone 20 years.

Francois van Rensburg divisional director of Dedicated Transport Services at Barloworld Logistics says “Freight-liner was an obvious choice. Reliability is very important for us to be able to deliver a superior service to our cli-ents. The personalised service and product we get from MBSA and their dealer, John Williams Bloemfontein, is a winning formula and the vehicles are a good match for the application.”

Zamani Mbatha, Freightliner, Tel: (012) 677-6042, Email: [email protected]

John William’s Motors Bloemfontein delivered a fleet of 44 Freightliner Columbia truck tractors to 27 owner drivers and 17 drivers of Barloworld Logistics, at the Pretoria Portland Cement (PPC) factory in Dwaalboom recently.

This hand-over marks the renewal of a five-year contract with Barloworld Logistics for rigs to service PPC Cement at their Dwaalboom factory. The 44 Freightliner Columbia’s replace a fleet of 44 Freightliner Argosy truck tractors that were handed over to the owner-drivers in 2007.

“Freightliner Columbia is an ideal vehicle for the PPC Cement application because of its lightweight MBE4000 engine. The 6x4 truck tractor is light enough to allow Barloworld Logistics to achieve their required payloads. The vehicles will transport twenty cement pallets with a 40 400kg payload on an interlink trailer,” says Godfrey Hani, the divisional manager for Freightliner, Fuso &

Page 23: Supply Chain Today Jan2013

Supply Chain Today January 2013 23

Goscor Lift Truck Company (GLTC) has delivered 33 ma-terials handling machines including several Crown reach trucks to Mass Discounters, part of the Walmart group.

GLTC South Durban area sales manager, Michael Burns says that the number of special features on the machines, some of which being a first for Goscor and Mass Discount-ers in South Africa, indicates GLTC’s ability to tailor-make solutions for its customers.

Some of these features include, firstly, a camera system with colour monitors, eliminating the margin for driver error at the 12 500mm lift height and, as Goscor says, ‘putting the driver where the pallet is’. Secondly, Crown’s exclusive InfoLink on-board management system, which will be used instead of Mass Discounters’ current local forklift management system. This is the first time that InfoLink has been used in South Africa. Thirdly, all the trucks include the ‘Bull System’, a fully automated elec-tronic battery change-over system and state of the art battery management system optimising charge cycles and improving battery life.

Ludwig van Eyssen, Mass Discounters logistics executive says that the new Crown fleet is state-of-the art technology, which will undoubtedly help improve productivity in the warehouse. “The combination of technological superior-ity and the excellent support service that we get from the Goscor team will help to further reduce downtime and improve overall efficiencies,” says Ludwig.Darryl Shafto, Goscor Lift Truck Company, Tel: 0861 GOSCOR (467 267), Email: [email protected], www.goscor.co.za

Assembled with some of the 33 Crown materials handling machines and their operators in Mass Discounters’ KZN warehouse: (l-r) Bobby French – Goscor on site technician; (seated on the forks) Michael Burns – Area Sales Manager South Durban; Ludwig van Eyssen – Mass Discounters - Logistics Executive and standing on the right, Steven Els – MMD Battery Bay Technician.

Success in KZN

Green Labelling

Designed to eliminate the use of compressed air, the MD3000e has been shown during product tests to of-fer the lowest possible cost of ownership. Fitted with Zetes’ unique ‘Electric Tamp’, it can cut energy utilisa-tion levels by around 70% and offers many additional cost savings when used with Zetes’ fully recyclable, “green” media.

“The MD3000e is a unique labeling device, it is 38% smaller than a typical Print & Apply system, uses re-cyclable materials in its construction, is ultra energy efficient and will cut operating costs by a big margin.”

Increased demand for traceability means manufacturers are actively seeking high speed labeling solutions, but also need to offset the increased environmental impact this brings through use of non-recyclable consumables. Combined with its 100% recyclable label liner and 28% more label content, Zetes’ new MD3000e Print & Apply solution ticks all the boxes for its green credentials, potential cost savings and efficiency ratings.

Sarah Dheedene, Zetes, Email:[email protected]

MARKET FORUM

Page 24: Supply Chain Today Jan2013

24 Supply Chain Today January 2013

Moving heavy equipment safely from one place to another has always been a matter of concern for man, not least of which when transporting forklift trucks!

Linde Material Handling recently invested in five roll-back delivery trucks, which they believe will greatly improve response, delivery and collection times to their custom-ers. All drivers will be fully licensed to operate all Linde Equipment, as well as hold a Crane Operator Certificate. In

addition, all inspections will be handled at point of delivery and collection.

The vehicles (one stationed in each of the major cities, ie, Cape Town, Durban, Port Elizabeth) with two in Gauteng will also provide a more professional approach towards deliveries and demonstrations. Not to mention create more brand visibility.

Apart from the very wide range of equip-ment on offer (ie, 0 ton to 52ton) in varying applications, Linde offers its customers an efficient service, repair and maintenance as well as a range of individualised services, ie, customer specific modifications of standard equip-ment; full maintenance contracts; onsite technicians; annual load checks; short and long term rentals; service and maintenance during shutdowns and over

weekends; and training. Furthermore, Linde has specialist heavy truck technicians regionally based and equipped with made-for-purpose trailers, stocked with service, first line support parts and specialised tooling to guarantee uptime availability of up to 98%.

Continuously striving to save costs, a dedicated Hydraulic Hose Division vehicle has been introduced, to eliminate the loss of downtime or production so often experienced when having to wait for a contractor to attend to hoses. The dedicated fitter ensures correct specifications and original Linde hoses are available.

Linki de Jongh, Linde Materials Handling, Tel: (011) 723-7000, Email: [email protected], www.linde-mh.co.za

Warning!!!The extensive range of automotive components from Stirling Accessories includes fully reflective chevrons that comply with stringent SABS specifications and provincial road ordinance regulations.

Says Keith Russon, CEO, Stirling Accessories, “Our acces-sories range encompasses high quality rear view mirrors and mirror arms, lamps and beacons, as well as electrical and general components. The company also manufactures reflectors and warning triangles, as well as carrier roofs and fishing rod racks.

“Critical in this portfolio are robust, non-corrosive chevrons which are designed for clear visibility in all conditions.

Chevrons from Stirling Accessories are known to have a longer service life than the other brands on the market. The reflective surface on a Stirling Accessories chevron has a sealed coating which prevents chipping or flaking along the edges. This coating also inhibits the red and yellow reflective tape from fading after extensive cleaning. It has been noticed that on other brands, the reflective ink tends to fade dramatically when solvents are used as a cleaning agent, for example in car wash environments.Keith Russon, Stirling Accessories, Tel: (031) 700-2966, Email: [email protected], www.stirlingaccessories.co.za

MARKET FORUM

chevrons are known to have a longer service life than the other brands on the market

Lifting Standards

Page 25: Supply Chain Today Jan2013

Supply Chain Today January 2013 25

Difficult-to-reach SpacesEazi Sales & Service, South Africa’s only distributor of JLG aerial work platforms, has engineered a work-at-height solution for a company operating in the local food and beverage sector. The newly-launched 10-metre Toucan, has drastically improved the company’s ability to clean in difficult-to-reach spaces, reducing the amount of time spent cleaning the factory each week.

“The JLG Toucan is operable in spaces of just one metre in width,” says Larry Smith, managing director at Eazi Sales & Service. “This, along with an outreach of more than 6.5 metres and an extended outreach exceeding 3.2 metres, makes the JLG Toucan ideal for lifting two cleaners to places where traditional vertical lift masts cannot reach. This includes an up-and-over functionality that allows users to perform maintenance above running production lines and other areas.”

“The machine’s mast-style boom is able to rotate 360°, and a tight turning circle makes it ideal for manoeuvring around warehouses and manufacturing facilities,” says Larry.

A platform (90cm x 70 cm) with a 200 kg capacity further makes the JLG Toucan suitable for other general tasks at height, such as changing lights, inspections, stock takes, and sprinkler and ventilation system maintenance. An overload sensor and tilt warning indicator helps operators to remain within safe working tolerances – an essential feature for applications at height.

Larry Smith, Eazi Sales & Service, Tel: 086 100 5540, Email: [email protected], www.eazisales.co.za

The JLG Toucan 10E from Eazi Sales & Service features a 10 metre working height, an over reach of more than 6. 5 metres, and an extended outreach that exceeds 3,2 metres

MARKET FORUM

MAR 2013 * Express freight industry * Trucking * Focus on packaging APR 2013 * Focus on freight forwarding* Warehouse Management Systems and Inventory Control * Focus on greening the supply chain

MAY 2013* Outsourcing* Truck Review * Focus on security including fire prevention, fuel theft

Contact Lelanie Diamond on Tel ( 011) 781-1401,E-mail: [email protected]

to book your advertising space

Book Now - Don’t Miss Out

Page 26: Supply Chain Today Jan2013

26 Supply Chain Today January 2013

Page 27: Supply Chain Today Jan2013

Supply Chain Today January 2013 27 277777777

T he company in question is BAW South Africa, and it has been established by the Beijing Automotive Industry Holding Company (BAIC), the Industrial Develop-

ment Corporation (IDC), and China Africa Mo-tors (CAM). BAIC, via its BAW subsidiary, has a 51% shareholding in the company; the two other shareholders share the balance. R196 million has been invested in BAW South Africa, which will employ 469 people.

BAIC is China’s fifth largest automotive manu-facturer, with annual sales revenue of more than 200 billion RMB, sales of 1,54 million complete vehicles and a number one profit increase ranking amongst China`s six largest automotive groups.

Real milestoneThe company has joint ventures with Mercedes-Benz and Hyundai. It owns Beijing Auto Works (BAW), which produces a range of vehicles including Jeeps for the Chinese military, light commercial vehicles (LCVs), sport utility vehicles (SUVs), minibuses and medium commercial vehicles (MCVs). BAIC also co-owns Foton Trucks with

Daimler and owns a substantial supply chain company, which has joint ventures with major Chinese and global suppliers.

John Jessup, head of sales and marketing at BAW South Africa, notes that the establishment of the company is a real automotive milestone for South Africa. “This enterprise brings with it new job creation and attractive product offerings in all major vehicle market segments, starting with the taxi market where we will be establishing many industry firsts in terms of servicing, financing and professional factory vehicle refurbishing. But, most importantly, this investment is an important indication of long-term commitment as opposed to ‘arm’s length’ importer/distributor agreements,” he says.

The manufacturing plant, located in New Era, Springs, will produce taxis on a semi knocked-down (SKD) basis but with a final line identi-cal to that of completely knocked-down (CKD) manufacturing plant.

John believes that there will soon be annual taxi replacement demand to the tune of 25 000 units in South Africa alone. “Then there is the sub-Saharan market, which will experience re-placement demand in excess of this,” he reports.

BAW South Africa’s Springs factory – with an annual capacity of 9 600 vehicles – will be in its first phase of operations over the next three years. Thereafter, the plan is for BAW SA to move to full CKD manufacturing at far greater capacity levels.

Just the beginning According to Tony Godycki, head of production of BAW South Africa, there were numerous lo-gistical challenges when it came to converting the plant from one which previously produced telephones into one producing taxis. “Firstly, we had to get rid of tons and tons of telephone and communications wire. Then there was the fact that it was quite antiquated. For instance, the whole plant was air-conditioned with old-fashioned water chillers, huge compressors and underground tunnels,” he relates.

According to John, the taxis are just the begin-ning for the company. “We will also be entering the LCV, SUV and passenger car markets from next year,” he reveals, “although the decisions whether to fully import or locally assemble these models is still under review.”

BAW South Africa, John Jessup, Email: [email protected]

Automotive History in South Africa

Two significant firsts have taken place in Springs, east of Johannesburg. One is the announcement of the first new

light vehicle manufacturer, which is assembling and building vehicles in South Africa – in 40 years! The other is the news

of direct Chinese investment in the South African light vehicle motor industry – for the first time ever.

John Jessup

TRUCKING

Important indication of long-term commitment as opposed to ‘arm’s length’ importer/distributor agreements

27

Page 28: Supply Chain Today Jan2013

28 Supply Chain Today January 2013

Fuel Consumption in the Truck Industry

Rory Schulz

Significance“Materials and manufacturing processes have been enhanced over the years to allow for greater compression ratios and tolerances in order to in-crease injection pressures. The advent of forward induction systems such as turbocharging has also contributed greatly to the advancement in fuel efficiency, while engine cooling has improved dramatically.

However, the most significant improvement has come in the form of electronic control units, which allow manufacturers to control the exact amount of fuel that is injected at a specific pressure with precision timing. This vital development has resulted in overall combustion efficiency, help-ing operators achieve lower emissions, which ultimately leads to improved fuel economy.

Rory adds that there are now engines available that are especially fuel efficient at a particular rev range and engine load.

DieselTo enable operators to keep the vehicle operat-ing in this ideal range, multispeed transmissions were introduced and further developments with electronics drivers to function in an optimum fashion with automated manual transmissions and electronic vehicle management systems.

“With these sys-tems of course comes much driver orienta-tion and on-going training to improve their skills to maxi-mise these benefits. Into the future, emis-sion levels will call for further developments, but alternative fuels to current fossil fuels, such as diesel, are most likely going to be the way to go,” says Rory.

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

R ory Schulz, UD Trucks Southern Africa’s general manager of corporate planning and marketing, Rory points out that a number of factors come into play when a

fleet owner needs to calculate the possible fuel consumption of a truck. “Environmental factors such as temperature and wind, as well as road surface type and operating conditions, always warrant strong consideration when factoring fuel consumption figures,” he explains.

OverallThe truck’s body type and overall frontal area, the spe-cific tuning of the engine and driveline components, tyre choice, tyre pressure and wheel alignment, as well as the load or all-up operating mass of the vehicle is on Rory’s list of aspects that need constant monitoring and attention.

“In addition, the quality and hygiene of fuel available in many places in the southern African region, leaves a lot to be desired,” says Rory. “Furthermore, it is imperative that the appropri-ate fuel for the specific design of the fuel system of any particular vehicle is used, in other words ultra-low sulphur diesel or 10ppm for Euro 4 and upwards. Driver training also plays an in-creasingly important role, as the correct driving techniques can save operators a lot of money on the long run.”

TRUCKING

With typical rigid vehicle

applications with typical

annual mileage, operating

at an all-up mass of

seven, 15 and 26 tonnes

respectively, the fuel cost

will constitute between 25

and 27% of a fleet owner’s

annual operating costs. In

a typical truck-tractor and

interlink application, the

fuel constitutes around

50-56% of the operating

cost.

Page 29: Supply Chain Today Jan2013

Supply Chain Today January 2013 29

TRUCKING

T he N3 between Johannesburg and Durban is one of the chemical industry’s main transport routes, as such, the N3 Toll Concession (N3TC), the concessionaire

responsible for the N3 Toll Route, from Cedara interchange in KwaZulu Natal to Heidelberg South Interchange in Gauteng, works with the Chemi-cal and Allied Industries’ Association’s (CAIA’s) Responsible Care initiative to make transporters of chemicals aware of the risks when using this route.

A significant number of accidents involving heavy vehicles were recorded by N3TC during the period of January till December 2011. In 48% of all crashes on the N3, heavy vehicles

were involved. The most important types of crashes that trucks/heavy vehicles are in-volved in, are single vehicle accidents (48% of heavy vehicle crashes) followed by heavy vehicle versus heavy vehicle crashes (27%), and lastly heavy versus light vehicle crashes (18, 8%). The most frequent type of crash is the rear end crash.

StimulantsDriver error, non-compliance to road traffic regulations and equipment failure are some of the common causes of road accidents that take place while transporting dangerous goods. Accidents involving dangerous goods can cause injury and death and seriously damage property and the environment. As a result, the safe transportation of chemicals on our roads is a focus area for Responsible Care (RC), CAIA’s initiative to improve safety, health and environmental performance and raise safety standards within the industry.

Driver fatigue is also a challenge for long distance truck drivers as this often leads to their taking stimulants to prevent fatigue. However, stimulants can have adverse ef-fects on physical skills such reaction times, co-ordination and vehicle control. They also affect moods, perception, information pro-cessing and risk taking.

Driver wellnessThe risk of driver fatigue should rather be reduced by co-operation between management and em-ployees. It is the responsibility of both parties to ensure that there is monitoring and control of driving hours, overnight stopping areas and planning of shifts and deliveries. Drivers can then adequately alternate their driving and rest periods, as well as focus on healthier eating habits and driver wellness.

Two tools which assist drivers and managers of haulier companies to reduce road fatalities are: The South African Safety and Quality Assess-ment System (SQAS) and Behavioural Based Safety (BBS).

Safe Transportation of Chemicals

The transportation of hazardous chemicals on our highways is a source of concern when the trucks transporting chemicals

are involved in road accidents.

Stimulants can have adverse effects on physical skills such reaction times, co-ordination and vehicle control

Page 30: Supply Chain Today Jan2013

30 Supply Chain Today January 2013

TRUCKING

SQAS audits are essential for ensuring the safe and responsible transportation of dangerous goods and are designed to evaluate the qual-ity, safety and environmental performance of Logistics Service Providers (LSPs) and chemical distributors in a uniform manner, by means of a single, standardised assessment carried out by independent third-party auditors.

The BBS programme is one of continuous improve-ment that increases safety during road freight transport by positively influencing the behaviour of drivers through observation, coaching and communication. The ultimate goal of BBS is to turn required behaviours into habits.

Training of traffic officials is supported so that they obtain specialised knowledge on the legal requirements for transporting dangerous goods

On top of thingsResponsible Care (RC) supports both SQAS and BBS and regularly hosts transport workshops to assist the chemical and related industries in obtaining knowledge of best practices with the aim of reducing the number of accidents relating to the transport of dangerous goods.

RC raises transport operators’ awareness on the subject of efficient braking and tyre checks. The training of traffic officials is supported so that they obtain specialised knowledge on the legal requirements for transporting dangerous goods.RC also empowers them to do their jobs better and intervenes more frequently in taking un-roadworthy trucks off the roads.

Louise Lindeque, Responsible Care, Tel: (011) 482-1671, www.caia.co.za

Page 31: Supply Chain Today Jan2013

Supply Chain Today January 2013 31

T he purpose of the Financial Advisory and Intermediary Services Act (FAIS Act) is to regulate the activities of all financial service providers who give advice or pro-

vide intermediary services to clients as regards certain financial products. The Act requires that such providers be licensed and that professional conduct be controlled through a code of conduct and specific enforcement measures.

The FAIS Act applies to any body that offers financial advice and/or provides an intermediary service to a client on any transaction that has to do with a financial product.

The penalties for not complying with the FAIS Act include fines up to R1 million and/or imprison-ment for up to 10 years, as well as the withdrawal of the Financial Services Provider ’s licence or debarment of a representative.

What is advice?Advice is defined as any recommendation, guid-ance or proposal of a financial nature furnished to any client in respect of the purchase of any financial product, the conclusion of any other transaction aimed at incurring any right or benefit or liability in respect of any financial product and the variation, replacement or termination of any financial product.

It is common practice in the road freight industry for operators to enquire from their customers whether they would like the operator to increase his goods in transit insurance. (ie, top up cover). The operator then obtains quotes from his or her insurer and discusses this with his potential customer.

Discussing insurance quotes with your customers and putting forward and discussing a quotation for insurance with your customer is considered as providing advice.

Thus any such discussion constitutes “advice” and the operator would be acting illegally if he is not a registered Financial Services Provider and registered with the Financial Services Board.

What is an intermediary service?Intermediary service means any activity other than the furnishing of advice as a result of which, the client may or does enter into a transaction with an insurer. Also included in the definition of intermediary service is:

the collecting or accounting for premiums payable by the client to an insurer, or

receiving, submitting or processing the claims of a client against an insurer.

How does this affect the road freight operator who provides insurance to customers?It is common practice for freight operators to pass on additional insurance requested to customers. The operator then collects the insurance premium from his customer and remits the premium from the client and remits this premium to the broker or insurer. In terms of the FAIS Act, the operator is then acting as an intermediary and would need to register as a Financial Services Provider. Failure to do so would be in contravention of the FAIS Act and the penalties mentioned would apply.

Please note that as operators are allowed to recover their costs from their customers, they could claim a “bailee’s” fee or administrative fee for their increased liability. Operators can still limit their liability and charge accordingly but it is recommended that contracts be amended accordingly. However this additional amount cannot be displayed on invoices to customers or referred to in contracts as insurance if not registered Financial Services Provider.

It is suggested that operators contact their insur-ance broker for more information and advice and guidance on how to comply. The RFA is, in the meantime, applying to the FSB for exemptions for operators as they are aware that customers expect a “one stop solution” from operators and would prefer the operator to arrange the insur-ance on his behalf.

The Road Freight Association, Tel: (011) 974-4399, Email: [email protected], www.rfa.co.za

Top-up Insurance - Financial Advice

The Road Freight Association has been advised by the South African Insurance Association (SAIA) that some operators are still not complying with the FAIS Act which came into effect in September 2004.

FREIGHT FORWARDING

Page 32: Supply Chain Today Jan2013

32 Supply Chain Today January 2013

AR

M A

dve

rtis

ing

& D

esi

gn

28

97

4-2

EPS is a lightweight cellular material derived from petroleum and natural gas by-products. EPS

heating systems, drainage boards, permanent formwork, foundation and prefabricated wall systems.

Environment-friendly. Contains no CFCs and does not damage the ozone layer.

Easily Disposable. Correctly incinerated, 100kg of EPS reduces to 0,01kg of ash, and the emissions are non-toxic.

Recyclable. Products include skirtings, poles, decking and picture frames.

Energy-saving: helps conserve other energy usage.

Compatible with advanced and conventional building materials.

Lightweight and easy to work with.

Rot-proof and durable. Fire-retardant. styFRene

TM

Moisture-resistant.

www.epsasa.co.za

IT S WHITE & GREEN

IT S THE ENERGY EFFICIENT INSULATION LEGISLATION SOLUTION

P. O. Box 7861 Halfway House

1685t: 011 805 5002f: 011 805 5033

[email protected]

AR

M A

dve

rtis

ing

& D

esi

gn

28

97

4-1

Page 33: Supply Chain Today Jan2013

Supply Chain Today January 2013 33

A irlink Cargo together with WFS (Worldwide Flight Services) formed a Joint Venture named AFS (Africa Flight Services), which was recently awarded the Emir-

ates Airline cargo handling in Johannesburg and Cape Town. The company is really on a growth path, and the team is excited, enthusiastic and working hard to make sure it continues to deliver an excellent solution for all of its customers.

Airlink Cargo is a dedicated airfreight transport company providing a cargo service domestically and regionally servicing the southern African market with overnight and daily express services.

Mozambique’s potential and growth“We have seen growth in other countries in Africa, but for me Mozambique is the most interesting and exciting,” says Alwyn.

Mozambique has huge natural resources and has started to put money, skills and energy behind the capital-intensive energy and mining sectors. “The country is doing incredibly well right now. It has minerals, gas, coal and a booming sugar industry,” says Alwyn. “We see a lot of imports into Mozambique of machinery, parts and other items they need to grow further.”

The boost in coal production from the first mega coal mining projects that came online last year, coupled with strong performance in the financial services sector, transport and communications, and construction, helped to push GDP real growth rate to 7.2% in 2011.

Impressive“The country has achieved an impressive aver-age of 7.2% growth during the last decade. The continuation of high foreign direct investment (FDI) inflows, mostly in extractive industries, together with strong agricultural growth and infrastructure investment will drive growth to 7.5% and 7.9% in 2012 and 2013 which is incredible for a country in Africa,” Alwyn adds. And good news for Airlink Cargo too.

“It’s great to see and, obviously good for our business, to see this happening,” says Alwyn. “We are uniquely positioned to take advantage of this opportunity – the size of our planes is perfect for Africa and we have had a lot of experience in this region. It’s not just Mozambique either, we are seeing growth in Lesotho, Swaziland and Zimbabwe, which is very positive for southern Africa as a whole.”

Not just about planesAirlink Cargo is a leader in ground handling and cargo services, offering a range of solutions to cater for all cargo handling requirements. The company processes over 70 international flights weekly at OR Tambo International Airport and handles over 600 tons of cargo weekly through its customs-controlled warehouses.

The company has a cold room (always 2°), two certified scales – one with a capacity of over six tons, as well as dedicated computer connections

Highest Potential is southern Africa

For Airlink Cargo, Africa is where it’s all happening and, according to CEO, Alwyn Rautenbach, the most phenomenal growth is in Mozambique, once one of the most poverty stricken countries on the continent.

“Supply Chain Today” speaks to Alwyn about what 2013 holds.

FREIGHT FORWARDING

We see a lot of imports into Mozambique of machinery, parts and other items they need to grow further

Page 34: Supply Chain Today Jan2013

34 Supply Chain Today January 2013

to SAA (for domestic cargo of Airlink), SITA, Compu Clearing, Cargospot and to the internet. A 40-camera CCTV system is in operation 24 hours a day backed by in-house security guards and a radio-linked armed response contractor.

All members of staff are trained in the handling of dangerous goods and certified on the equip-ment they use and the cargo they handle. Airlink

FREIGHT FORWARDING

Cargo’s services include acceptance of cargo, data capture of airwaybill details, manifesting, loading/building of pallets or loading containers, and supervision of loading at the aircraft.

Alwyn concludes, “As South Africans we are well-positioned to take on work over our borders, our infrastructure and systems are top-notch and our staff are ready to take on the challenge as Africa opens up further.”

Alwyn Rautenbach, Airlink Cargo, Tel: (011) 390-9900, Email: [email protected],www. airlinkcargo.co.za

Our infrastructure and systems are top-notch and our staff are ready to take on the challenge as Africa opens up further

A (Cm

a dand a r

re o t

Page 35: Supply Chain Today Jan2013

Supply Chain Today January 2013 35

The winning team from Appletiser, comprising Albertu Farmer, Nico Olivier, Duncan Mutch and Francois Rozon represented South Africa at the international Fresh Connection Challenge in Barcelona in September 2012 sponsored by SAPICS.

SAPICS

The Fresh Connection is regarded as one of the ultimate supply chain learning experiences for

the profession. The challenge posed by the competition is for fellow team members to collabo-rate, craft a strategy, integrate decisions and implement change in order to completely transform a fictional company, The Fresh Connection Company, to make it as profitable as possible. Advanced simulation software calculates the consequences of the strategic and tactical decisions a team makes from one round to the other.

Says Appletizer’s Francois Rozan, after the team’s international success: “The Appletizer Lead Team highly recommends the Fresh Connection learning experience to any organisation wishing to bring about a culture of teamwork and close co-operation. We are highly impressed with the knowledge we obtained and have no doubt that our company’s value chain will greatly benefit from this in the foreseeable future.”

Sticking to your gunsWhen asked which aspects of technical learning were the most valuable during the international games, Francois replies that no one strategy is the unique winning proposition. However, choosing one strategy, sticking to it and aligning the entire organisation are key success factors. Aligning the different supply chain disciplines was critical to maximising the ROI. We were presented with new opportunities to select different distribu-tion partners to get the right fit with our supply chain strategy.

“Furthermore, we could collaborate with com-petitive teams to achieve longer shelf life on the Glass packs. Collaboration with the winning team actually helped us to move from 3rd to 2nd place. Right through the game we were challenged to compile all our technical calculations in a very short time span. We found that the first six rounds of the national game prepared us to work together

Olé, Appletiser, Olé!It’s mid-September 2012 and value chain professionals from nine

countries, four continents and various industries gather for the second annual global final of The Fresh Connection (TFC) in Barcelona,

Spain. The Appletiser Lead Team, which had qualified for the finals by winning the South African pool earlier in 2012, did their country

proud by attaining a second place at this prestigious event. They were narrowly beaten by the Dutch dairy company, FrieslandCampina.

Collaboration with the winning team actually helped us to move from 3rd to 2nd place

Playing the Game, clockwise: Francois Rozon, Nico Olivier, Duncan Mutch and Albertu Farmer

The Fresh Connection is an international, web-based learning tool for developing cross-functional partnerships with key stake-holders in the supply and value chain. It provides companies with numerous learning formats to ensure business objectives are met. It gives a real life supply chain experience within a simulated environment.

Page 36: Supply Chain Today Jan2013

36 Supply Chain Today January 2013

SAPICS

as a well-oiled machine”.

Francois adds that his team felt that no one person can do it all in the game; each functional expert is key to good team performance. It is imperative that each function shares key information, chal-lenges and opportunities so that they engage as a team and rapid decisions can be reached – just like the work environment!

In good spirit“Especially under time constraints we were forced to give each other enough space to get our heads around own particular discipline and

then to balance this with the bigger picture. The simulated stressful environment stretched us all in terms of constructive communication and ef-fective team work.”

The Appeltizer team rates the state of logistics planning in South Africa against that of the in-ternational competitors at the final very highly. The team states, “ The fact that we came 2nd proved that the SA skill level is on par with the rest of the world. In Spain we played against the regional winners so every team had the op-portunity to come out on top. It was extremely competitive and yet we all played in good spirit.

Real life“The experience simulates the practical issues very well and is an excellent reflection of the real world we face in the FMCG industry. We prefer by far the fun environment to a typical classroom/lecture environment. We experienced it as a typi-cal on the job professional learning experience.”

SAPICS (The Association for Operation Manage-ment of Southern Africa), the host of the regional competition and sponsor of the Appletiser team’s participation in the international conclusion of the initiative in Barcelona, Spain, is proud to be associated with this learning initiative and congratulates the Appletiser team for the impres-sive result!

Jenny Froome, Sapics, Tel: (011) 023-6707, www.sapics.org.za

Page 37: Supply Chain Today Jan2013

Supply Chain Today January 2013 37

SPATIAL PLANNING

A urecon has been awarded a tender to assist the City of Johannesburg with the formulation of development port-folios for select BRT and rail station

precincts, and to integrate the city’s vision into its

Twin City Spatial PlanningThe City of Johannesburg’s Growth and Development Strategy is very clear about its vision for urban spaces, ie, that of creating “A spatial form that embraces the principles of integration, efficiency and

sustainability, and realises tangible increases in accessibility, amenity, opportunities and quality of life for all communities and citizens”.

proposal. The group houses a professional team of experts in a wide variety of fields, including town, transportation and spatial planning, urban design and tourism, ensuring a professional team with a large variety of experience in relevant fields

of development.

StimulatingdevelopmentThe project pres-ents an opportu-nity to determine a development strategy for Jo-h a n n e s b u r g ’ s BRT and rai l precincts and to determine rec-ommendations that will opti-mise the existing surrounding site usage. “The end goal is to stimu-late development in the area and to eventua l l y establish and/or upgrade infra-structure to meet this goal,” ex-plains the City of Johannesburg’s, Herman Pienaar.

“Added to this is the overrid-ing imperative of serving the community by creating an ef-fective, efficient, convenient and safe environment through increas-Meadowlands will have improved access to reliable public transport

Page 38: Supply Chain Today Jan2013

38 Supply Chain Today January 2013

ing accessibility to public transport.”

Transit-oriented developmentThe plans revolve around what is termed transit-oriented development (TOD) precincts which entail mixed-use residential or commercial areas designed to maximise access to public transport. These precincts incorporate features that encour-age transit usage. “The BRT and rail stations will form the centre of the proposed developments, surrounded by relatively high-density development with progressively lower-density development that spreads outwards from the centre within a radius considered to be an appropriate scale for pedestrians,” explains Jako Strydom, town planner at Aurecon.

This principle is supported by the density and mobility policies of the City of Johannesburg’s spatial development framework.

State-of-the-art analysisAurecon is utilising state-of-the-art software to analyse the operational efficiency of exist-ing transport and to test land use planning and associated transport demand alternatives. The software’s scope is extensive as it allows the operator to work on macro studies as well as on urban traffic studies and innovative traffic man-agement concepts simultaneously. “Aurecon is confident that the PTV Vision will provide the City of Johannesburg with a comprehensive solution when it comes to transport modelling,” believes Bernard van Biljon of Aurecon’s Transportation Planning and Traffic Engineering team.

The project is unique in South Africa because it

is a prime example of “twin city” spatial planning which integrates the Soweto and Johannesburg regions. “It’s a first for our country. No one has looked at precinct planning in this manner before.”

Thorough evaluationOne of the most challenging tasks so far has been that of evaluating and scoring the precincts in terms of their development potential. This was essential in order to identify the final four pre-cincts that will be investigated and developed. “The evaluation was done through a sophisticated scoring matrix,” explains Bernard. Constraints that were considered were far-reaching, and included the geo-technical, hydrological, agricultural and environmental aspects of each site.

Far-reaching influence“The trend of travelling long distances to the nearest CBD by means of public transport is unsustainable from a social, planning, economic and environmental perspective,” explains the City of Johannesburg’s, Liana Strydom. The influence the project will have on the lives of ordinary citi-zens is weighty: the practical implications of the eventual spatial arrangement are that many people living in the areas of Orange Farm, Lenasia, Protea Glen, Naledi, Doornkop, Dobsonville, Jabulane, Meadowlands, Orland and Diepkloof (to name a few) will have improved access to reliable public transport, enhanced economic opportunities and, ultimately, a sustainable way of life.

“These were the core reasons for the implementa-tion of inter alia, a Bus Rapid Transit system in the City of Johannesburg,” she concludes.

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

The project is unique in South Africa which integrates the Soweto and Johannesburg regions

SPATIAL PLANNING

Page 39: Supply Chain Today Jan2013

Supply Chain Today January 2013 39

T he R363 million centre, in Ekurhuleni, Gauteng, was built and equipped in 15 months and designed

to serve the company’s southern African Toyota, Lexus and Hino dealer network, 223 points, with daily deliveries. It will also sup-port 70 international destinations where proudly South African built Toyota vehicles are found.

“This opening signals the start of a new phase of investment and development for Toyota South Africa,” explains Johan, who is also a Managing Officer of Toyota Motor Corporation.

“After announcing our intention to develop this facility in January 2011 we have also announced the local assembly of our Ses’fikile taxi and future plans to significantly expand this initial R70 mil-lion investment.

“These investments lay the foundation for a mid-

term strategy that will further develop the local automotive industry as envisioned by the Auto-motive Production and Development Programme. It will also strengthen South Africa’s position as a global manufacturing hub with its ability to fully support any locally-manufactured vehicle, regardless of its destination.”

The new facility has 39 000 m2 of storage space and a further 3 000 m2 of office space. This area hosts the company’s Customer Service and Lo-gistic Support divisions. It truly is vast. It stocks 2.2 million part pieces, 110 000 different parts and components – with a value of more than R350 million.

In the second phase Toyota will add 38 000 m2 of warehouse space, making its facility the larg-est of its kind on the African continent. Until this second phase has been completed – expected in 2015 - the new facility will be supported by the company’s existing warehouse infrastructure of

Largest of its Kind on the African Continent

“Supply Chain Today” attended the October opening of South

Africa’s largest vehicle manufacturer, exporter and retailer’s

new distribution centre and spent time with Dr Johan van Zyl,

President and CEO, to find out all the details and future plans.

Making its facility the largest of its kind on the African continent

DISTRIBUTION CENTRE

Dr Johan van Zyl

Page 40: Supply Chain Today Jan2013

40 Supply Chain Today January 2013

22 000 m2 located in Sandton, Gauteng.

While automation plays a big part in the distri-bution centre, so does safety and people come first. Throughout the warehouse are first aid stations with staff assigned safety duties after being trained.

And the next phase will be just as green

DISTRIBUTION CENTRE

Also of huge importance to Toyota is being envi-ronmentally friendly. The warehouse uses mostly natural lighting, recycles water through filters and back into the wetlands around it – all of this was taken into account when the building was being planned and the next phase will be just as green.

Toyota, Tel: 0800 139 111/011 809-9111, Email: [email protected], www.toyota.co.za

Page 41: Supply Chain Today Jan2013

Supply Chain Today January 2013 41

MARKET FORUM MARKET FORUM

Previously the company outsourced its forwarding and clearing to third party suppliers, but increased customer demand for an in-house service of this nature necessitated the development of the new business unit.

4PL.Group group managing director, says while the new division will allow the company to actively ser-vice these internal customers, it will also enable it to grow this part of the business, with a strong focus on southern Africa. “Naturally we’re now able to better service our existing and new customers’ forwarding and clearing needs through the division, but we also aim to target project-related work, particularly in the infrastructure sector.”

Mark Gunther is well-known for his work in the logis-tics industry, having previously headed up Bidvest’s freight management solutions business, Manica.

“I’m looking forward to building this new part of the business, especially as it allows us to tap into our broader growth strategy to establish a stronger footprint in Africa. Our goal is to use the division as a platform to forge inroads into countries north of our borders. 4PL has been operating in a few of these countries for some time, but we really hope the new business will spearhead a quantum shift for us in terms of our presence in Africa,” Gunther explains.

4PL Clearing & Forwarding complements 4PL.Group’s existing supply chain solutions, which include turnkey project logistics, warehousing, rail and road solutions, and the provision of supply chain technologies.

4PL. Group, Brendan Pearson, Tel: (087) 943-6450, www.fourpl.com

Augmenting its Service

Brendan Pearson, 4PL.GROUP group managing director (Left) with 4PL Clearing & Forwarding executive director, Mark Gunther

As supply chain manag-ers cut costs and secure a

constant high degree of delivery performance, Damco now offers improved

capabilities to optimise the entire end-to-end supply chain from a cost, delivery time,

capacity and carbon perspective. Damco’s global team of 50 supply chain developers completed more than 200 projects in 2012 freeing up more than US$ 160 million in value to their customers. Based on new technology Damco will provide customers with a stronger foundation for making decisions about: How much inventory is needed to meet desired service levels; Where should inventory be kept? (at origin, in transit, at destination); How many warehouses/DCs are needed and where to locate same; When to phase in/phase out warehouse capacity during the next, eg, five years; Which transportation mode, container and truck type is optimal from a cost, service and carbon perspective for the in- as well as the outbound supply chain.

“A quicker, more thorough and holistic approach to supply chain design and optimisation is key to operate in a world of constant change”, comments Erling Johns Nielsen, global

Linkhead of Supply Chain Development at Damco.

“You can have the best supply chain concept in the world. However, without being able to adapt to change while having access to experienced supply chain pro-fessionals located close to your supplier and customer base, who can implement and execute the change on a daily basis, you will not reap the full benefits.”

In 2012, Damco launched the revolutionary Damco Dynamic Flow Control, which tackles the hassle of dealing with constant changes on the demand and supply side without adding cost, time, and complex-ity. The new optimisation tool is the strategy part of Damco Dynamic Flow Control.

“A prerequisite for supply chain excellence is that you can evaluate supply chain performance, simulate your different options very quickly while understanding implications to cost, service levels, lead time and capacity and translate your findings into specific ac-tions on a day to day level,” says Erling.

“New tools combined with Damco Dynamic Flow Control ensures that it takes much less time to simu-late the impact of the change, design new business rules and subsequently roll out the solution across all stakeholders involved in the supply chain. This is really a missing link in many supply chains”, he concludes.

Erling Johns Nielsen, Demco, www.damco.com

4PL.Group, a supply chain service provider to the bulk in-dustry in southern Africa, has established a new forwarding and clearing division, 4PL Clearing & Forwarding, with Mark Gunther at the helm.

Page 42: Supply Chain Today Jan2013

42 Supply Chain Today January 2013

International freight management and supply chain company, LTG Logistics Transport Globally’s new warehouse and distribution centre in Rosslyn is now operational.

The new facility offers customers a floor space of 6 000m2, storage space of about 12 000m2, 24/7 operations and a strong information technology platform integrating sophisticated warehouse management systems. According to LTG managing director, Uhland Muller, the company built the new warehouse and distribution centre to cater for the changing environment within the automotive and manufacturing industry.

“The emphasis within the industry has moved to global purchasing, resulting in a higher demand on the local supply chain elements such as warehousing and distribu-tion. Our new modern warehouse and distribution hub is therefore built to service these new needs and is ideally located in the industrial heart of Rosslyn near major automotive manufacturers, OEMs and the Automotive Supplier Park,” he says.

The new warehouse and distribution centre is also unique in that it can be used for both manufacturing and warehous-ing. “Thorough planning has gone into the design of the new warehouse to ensure that it caters to the needs of our customers. Its ablution facilities and canteen areas can, for example, host up to 200 people per shift, if required. In addition, the site will serve as LTG’s new head office and be the home of a few executives representing our parent company, ALC Group. This ensures that we are in the right

Poised forGrowth

The transformation of Makro’s Midrand distribution cen-tre into a modern facility with an additional 11 000m2 of warehousing space has been completed by Investec Property. The expansion of the existing premises from 16 000m2 to 27 000m2 commenced in November 2011 and was completed in July 2012 when the building was handed over for occupation.

Makro was able to keep the facility fully operational during the extension and refurbishment of the facility without any interruption to their day-to-day activities. Makro spent several weeks installing the necessary racking into the facility for it to be fully operational by the end of August 2012.

Improvements to the site, facilitated through the ex-pansion, include the installation of a new roof over the entire premises as well as an upgrade to the fire control systems and sprinklers in the premises.

Heather Casey, Investec Property, Tel:(011) 286-9291, Email: [email protected]

Refurbishment of Major Distribution Centre

place and on hand to address and manage our customer’s requirements and valuable cargo,” Uhland adds.

Rosslyn has unique characteristics in that it is a major automotive industrial area linking Gauteng with the North West Province, which houses industrial areas such as Brits and GaRankuwa, as well as all the different mining organisations. The area is also en-route to the north and into the rest of the African continent.

“For this reason, we are also focusing on addressing the needs of the mining industry,” Uhland concludes.

Norman Nicholson, LTG, Email: [email protected], www.ltgfreight.co.za

A Shot In the ArmNedbank Corporate Property Finance has approved R151 million in funding for the expansion of the Brandhouse warehouse facilities in Germiston.

The loan, which was granted to the Zenprop Group, will fund the development of Brandhouse II, which comprises additional warehouse space for this premium alcohol beverage company, as well as over 700m2 of offices, and additional hardstand and parking capacity. In total, the extensions will increase the Brandhouse facilities in Elandsfontein, Germiston by over 24 000m2.

Brandhouse (Pty) Ltd is one of the leading premium alcohol beverage companies in South Africa offering consumers an unrivalled portfolio of spirits, beer and ready-to-drink (RTD) brands. The company has been operating in the South African market since July 2004.

In South Africa, Brandhouse operates in four mega-regions,

MARKET FORUMMARKET FORUM

Page 43: Supply Chain Today Jan2013

Supply Chain Today January 2013 43

An aerial shot of BMG Park, Droste Park, Johannesburg

MARKET FORUM

BMG (Bearing Man Group) has launched a supply chain re-engineering project, which encompasses the expansion of its distribution facility in Droste Park, Johannesburg, which currently carries about R400-million worth of stock.

“The company intends to make an investment of an esti-mated R250-million to increase its warehousing capacity at BMG Park and to improve supply chain processes across the group. The existing 25 000m² under roof facility at BMG Park will be increased to 40 000m² in phase one of the project,” says Vasu Govindasamy, BMG’s supply chain projects manager.

This project encompasses the acquisition of adjacent properties, modifications to the existing BMG Park build-ings and erection of new structures. New facilities will

Re-engineering Project

each headed up by a general manager. These regions are: Western Cape and PE, Kwazulu Natal and East London, Inland (North) and Inland (South). Brandhouse currently employs more than 900 permanent employees in South Africa, and is present in all major metropolitan areas as well as many smaller regional centres.

Says Ken Reynolds, regional executive for Nedbank Cor-porate Property Finance in Gauteng. “In addition to the extensive experience of the Zenprop management team, the excellent location of the warehouse development, and

a strong, well-established tenant to support the lease, the group and its various subsidiaries have partnered with Nedbank Corporate Property Finance on numerous successful developments in the past, including similar warehouse facilities and office buildings in Riverhorse Valley and Woodmead Office Park.”

Ken Reynolds, Nedbank Corporate Property Finance, Tel: (011) 294-1649, Email: [email protected]

include a fit-for-purpose workshop and an assembly area to accommodate BMG’s value-added businesses, which include drives and belting.

The new facility will also accommodate BMG’s fasteners and hydraulics business units that are currently off site. There will also be a new customer sales and service area, as well as training and auditorium facilities.

The hub of the company’s distribution network is the central despatch warehouse at BMG Park, which handles nearly 400 000 transfers a month, with around 36 tons being despatched daily.

Vasu Govindasamy, Bearing Man Group, Tel: (031) 576 6456, Email: [email protected], www.bmgworld.net

Page 44: Supply Chain Today Jan2013

44 Supply Chain Today January 2013

The Demand Response Rewards Programme offers a financial incentive for businesses to shift their

electricity use. It’s a programme designed to reward consumers for not using their electricity load at a

period of high demand. What are you waiting for? This programme is rapidly gaining ground among

commercial and industrial users of electricity as a way of reducing load and improving their bottom line.

To join the programme visit www.eskom.co.za/idm or call 08600 37566.

Rewards DemandThe

Programme makes

sense.business

Response

MO

HLA

LEN

G_ESK

D_562/

EN

G/D

eman

d R

esponse

Page 45: Supply Chain Today Jan2013

Supply Chain Today January 2013 45

Cargo Carriers recently won AfriSam’s annual Branded Transporter of the Year Award in light of the logistics company’s outstanding customer service. The score: 99.86% on-time deliveries over the year.

“In an industry such as ours, where significant ex-cess capacity exists, superior service becomes the key differentiator we can offer our customers,” says Michael Bradford, operations manager of Distribu-tion at AfriSam. “In this case, for us, Cargo Carriers came out on top.”

The AfriSam Branded Transporter of the Year award is awarded to the transporter who achieves the highest

A Potent Combination

Intaprop has opened its Meadowview Business Park West for development following its completion of the initial phase of the prime business estate, including the R575 million new head office for UTi Pharma.

The 50-hectare estate lies adjacent to the N3 highway and R25 Modderfontein Road at the London Road in-terchange. It is centred between two of South Africa’s most successful commercial nodes, Longmeadow and Linbro Park, at the point of peak demand for logistics and warehousing premises in Gauteng.

Intaprop director Hugo Stroud says, “Intaprop is developing Meadowview in phases on a demand-led basis. On completion, Meadowview will accom-modate 250 000m2 of development, making it a high-profile commercial precinct in northern Johannesburg”.

The newly opened Meadowview Busi-ness Park West has further development capacity of 30 000m2. It is zoned for industrial warehousing and office uses, with opportunities for development customised to tenant requirements, ranging from 5 000m2 to 20 000m2. It provides tailor-made amalgamations of offices, laboratories, warehousing or logistics facilities for clients.

Larger parcels of land are however available on request at Meadowview

Open for Business

aggregate score from three contributing category awards. Those being the Safety Award, the Corporate Image Award, and the Customer Service Award. Cargo Carriers won the Customer Service award, and the logistics company’s high levels of safety and CI left it in good standing to win the overall Branded Transporter of the Year.

“We’ve been in business with AfriSam since 1992,” says Nico Gerber, Director of Cargo Carriers’ Fuel and Powders Divisions. “In that time we have had an excellent service delivery record. Our customer-focused approach and the development of long-standing relationships is what we strive for with all our clients.”

AfriSam recently renewed its contract with Cargo Carriers for a further five years. They now execute all bulk deliver-ies in the Northern Cape and Free State. Since the logistics company started transporting cement in these provinces in 2006, there has been an enormous growth in fleet size – proving that service and value are a potent combination.

Nico Gerber, Cargo Carriers, Tel: (011) 487-8700, www.cargocarriers.co.za

Business Park East, which is presently open to enquiries only. The East precinct will introduce a further 125 000m2 of developable bulk when it comes to market. Infrastructure for this precinct will commence in 2013.

Hugo Stroud, Intaprop, Tel: (011) 550-6900, www.intaprop.co.za

MARKET FORUM

Page 46: Supply Chain Today Jan2013

46 Supply Chain Today January 2013

Afzelia 40

APC Inside Front Cover

Apex Strip Curtains 8

Acrow 30

EPSASA 32

Eskom 44

IEE 12

ILS Inside Back Cover

Krost Shelving 18

Oriole Consulting 40

SAID 36Scania Outside Front/

Outside Back Cover

Spode Storage 25

Stab-a-Load 34

Universal 14

Index to Advertisers

MARKET FORUMMARKET FORUM

Greg Woodbridge has been appointed managing director of Imperial Lo-gistics Refrigerated Services. Greg’s experience spans 25 years in retail and temperature-controlled supply chains and he has worked in several of the large retail and international supply chain businesses.

Zetes South Africa, part of the pan-EMEA leaders in people and goods identification, has appointed Alex Driesen as managing director and general manager.

In July 2011, Zetes acquired the ProScan Group to form Zetes South Africa, and more recently consolidated its three operations into a single entity to focus on expansion and growth in local markets and Africa.

Outgoing managing director and general manager, Andrew Fosbrook, who founded the company in 2002, will remain with the group in the part-time role of company secretary supporting the board of directors of Zetes in South Africa. He will also finalise the merger of the three legal entities under the Zetes’ umbrella.

On The Move

Alex DriesenGreg Woodbridge

BT has introduced new cloud-based capabilities for BT Trace, its portfolio of supply chain solutions designed to help organisations overcome the challenges of managing increasingly complex global supply chains. BT Trace now includes a cloud-based solution that will provide a single, accurate view into complex supply chains in near real time, to see how and where changes need to be made and enable customers to improve operational efficiency.

Companies with a global supply chain deal with multiple issues, from counterfeiting and shrinkage to product recalls and perishable goods. This is typical for global companies active in industry sectors such as consumer packaged goods, logistics, manufacturing, pharma or retail for example. They need an accurate understanding of all inventory and on-shelf availability, all the while trying to comply with regulations and operate a sustainable business. Supply chain visibility is a challenge for those companies because of the multiplicity of formats, sources and partners that collect data. All too often, their various resource planning and backend systems are not even connected. BT Trace helps companies respond to those critical challenges.

The new cloud service, cost effectively and securely col-

A Single Viewlects, stores, shares and interprets high volume event data about goods and assets moving along an extended global supply chain. The new service integrates the complex information from the various resource planning and IT systems used by global companies (and by their suppliers) to provide a single view of the whole supply chain through a customised web portal.

The new service has been trialed and tested with TNT Ex-press, one of the world’s largest express delivery companies. The service developed by BT in close collaboration with TNT was implemented to help drive operational efficiency; improve customer service and optimise reverse logistics.

Steve Brown, Divisional General Manager of TNT Special Services states, “We have shown that greater visibility across the supply chain increases efficiency and flexibility. There is no doubt that a single view across all systems and data speeds up processes and identifies significant events, allowing us to respond in new and better ways to our customers, and they, in turn, deliver a better service to their customers”.

Luis Alvarez, Bt, Tel: (011) 709-0900, www.globalservices.bt.com

Contact Lelanie Diamond to book your advertising space on

Tel: (011) 781-1401, Email: [email protected] or

visit www.promech.co.za

Page 47: Supply Chain Today Jan2013

Supply Chain Today January 2013 47

Page 48: Supply Chain Today Jan2013

48 Supply Chain Today January 2013

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

Trucks / Buses / Engines / Finance & Insurance / Parts & Services

Scania builds some of the finest trucks, buses and engines in the world. Then we back them up with services that deliver value, reliability and high uptime - giving you an excellent return on your investment.

Scania services help you grow your business and keep it moving forward.

Service Excellence

SCANIA SOUTHERN AFRICA


Recommended