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Supply Chain Today October 2012

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"Supply Chain Today" is endorsed by the Council for Supply Chain Management Professionals (CSCMP), the Consumer Goods Council of SA (CGCSA), the Chartered Institute of Logistics & Transport SA (CILTSA), the SA Express Parcel Association (SAEPA), SAPICS, the Road Freight Association and SmartX.
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Supply Chain Today October 2012 1
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Page 1: Supply Chain Today October 2012

Supply Chain Today October 2012 1

Page 2: Supply Chain Today October 2012

2 Supply Chain Today October 2012

right oil to fi

We o�er a Scania Oil for every Scania engine, gearbox and rear axle. So we can now match the

t your vehicle, drivetrain components and driving conditions. This gives you security for your drivetrain and peace of mind for you.

At Scania, our dedication goes beyond delivering trucks, buses and engines with outstanding quality and operating economy. Behind the scenes, we are continually working to improve your transport up-time and business performance, with new o�erings

ranging from parts and service to fi nancial solutions. Now, after years of development and testing, we are introducing a range of high-quality oils that proudly bear the Scania name. Scania Oil has been specially chosen and tested for the best possible quality.

Oil change!

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

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

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

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Scania Oil Advert 1.pdf 1 2/20/2012 10:58:33 AM

Page 3: Supply Chain Today October 2012

Supply Chain Today October 2012 3

October 2012

Contents

Proprietor and Publisher: PROMECH PUBLISHINGTel: (011) 781-1401, Fax: (011) 781-1403E-mail: [email protected], www.promech.co.zaManaging Editor: Susan CustersBusiness Manager: Louise Taylor Advertising 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 Warehouses for Optimised Efficiency

Racking and Shelving 6 Survey

Transport9 A Fortuitous Move

Cleaning12 Calculated Cleaning In-motion

Routing & Scheduling15 Optimising Your Operation’s Potential

Market Forum — Unit17 Market Forum - Unit

Strategic Sourcing21 Managing Global Supply Risk: Now and In the Future

Retail23 Global Retail Development Index

Warehousing25 Warehouse Automation in South Africa

WMS & Inventory Control31 A Force at Work34 Change Management

Market Forum — Supply38 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:

APC Storage Solutions SA

Tel: 0861 61 61 61Fax: 0861 61 61 62

www.apcstoragesolutions.co.za

www.promech.co.zaright oil to fi

We o�er a Scania Oil for every Scania engine, gearbox and rear axle. So we can now match the

t your vehicle, drivetrain components and driving conditions. This gives you security for your drivetrain and peace of mind for you.

At Scania, our dedication goes beyond delivering trucks, buses and engines with outstanding quality and operating economy. Behind the scenes, we are continually working to improve your transport up-time and business performance, with new o�erings

ranging from parts and service to fi nancial solutions. Now, after years of development and testing, we are introducing a range of high-quality oils that proudly bear the Scania name. Scania Oil has been specially chosen and tested for the best possible quality.

Oil change!

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

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

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

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Scania Oil Advert 1.pdf 1 2/20/2012 10:58:33 AM

Page 4: Supply Chain Today October 2012

4 Supply Chain Today October 2012

COVER STORY

Warehouses for Optimised Efficiency

The Artix articulated forklift operates in extremely narrow aisles, facilitating more pallet storage. This is a crucial component of a number APC’s high capacity warehouse designs

I n South Africa, APC Storage Solutions SA is leading the way towards smarter, more efficient warehousing: Just over the last year, the company helped a number of South Africa’s largest supply chain operators over-

haul their warehouses to run at higher capacity. If this alone does not reflect the company’s “smartness,” having achieved these capacities without significant upgrades to supply chain infrastructure, operating personnel or OPEX, certainly does – as discussed in four recent projects:

50% more pallets at SedibengAPC doubled the pallet capacity at Sedibeng Breweries’ raw materials warehouse in Kliprivier (Gauteng), using state-of-the-art warehousing principles. The solution included a drive-in racking system, conventional pallet racking, and pallet live storage system. The incredible capacity increase totalling close to 3 000 pallets, was achieved by cleverly arranging the warehouse’s inner operations, while using the same blueprint of the previous design.

“We spaced the narrow-aisle racking to feature access aisles of just 2 000 mm,” says APC’s managing director, Fred Albrecht. “This would normally pose problems for standard suppliers, but as a complete solutions company, we were able to supply a pallet forklift that was ideal for operating in abnormally narrow access aisles.” He is referring to the Artix articulated forklift, APC’s answer to narrow aisle and very narrow aisle handling challenges. “With a minimum width of just 1 000 mm, it is capable of managing pallets in aisles as narrow as 1 600 mm. It is a key enabler of high density pallet storage,” he says.

With efficiency and cost optimisation on everybody’s mind, warehouse owners are opting for making the most of space they already have at their disposal, rather than shopping for additional square meterage – which comes with added utility bills, and might upset an already well-

rehearsed logistics distribution network. The result of this is that warehouse solutions companies have had

to become smart – in a sense that they’re able to offer considerably more than just racking and shelving.

The capacity increase totalling close to 3 000 pallets, was achieved by cleverly arranging the warehouse’s inner operations

Page 5: Supply Chain Today October 2012

Supply Chain Today October 2012 5

COVER STORY

This warehouse is designed to be compacted even further, with future capacity increases already incorporated into the design by APC

National expansion for Value LogisticsValue Logistics also experienced rapid expan-sion during 2011/2012, and APC helped the company keep up with demand with a complete, four-warehouse overhaul:

APC re-designed the racking layout at Value Lo-gistics’ Freightpak’s 3 200 m2 facility in Pinetown to accommodate higher throughputs and a total storage capacity of around 5 200 pallet posi-tions. The company also dismantled racking at Value Logistics’ Alrode facility for redistribution to a new 37 000 m² in Clayville, Midrand. The relocated racking was completely refurbished to accommodate greater pallet depths and heights.

“Our warehouse design team at APC Consult created four racking layout options for the new facility, allowing our client to choose the best solution for maximised efficiency with existing racking at virtually no extra costs,” says Fred.

The remaining racking dismantled at the Alrode warehouse was installed at Value Logistics’ warehouse in Rosslyn, north of Pretoria. This entailed detailed structural analyses and the replacement of components deemed irreparable. “The challenge here was that we could not shutdown operation for even a minute. We had to work in sections to avoid creating downtime to our client,” says Fred.

A 100 000 m2 warehouse in Tunney also benefited from APC’s complete range of available services. Here, projects ranged from breaking down and reinstalling racking, to moving mezzanine levels and designing new racking layouts for roughly 3 000 pallet positions. APC also installed an additional 1 300 levels of light duty longspan shelving for the stocking of smaller, hand pick-able items.

New compact warehouse for SandvikAPC has helped the engineering group, Sandvik, with a series of projects since 2008. When a new warehouse was commissioned to free up space for a new division within the company, the group only had one supplier in mind to design and provide the technology.

“APC Consult, our forward-thinking consulting and warehouse design division, created a com-pact warehouse layout that integrated Sandvik’s existing heavy-duty cantilever racking (SA’s largest heavy-duty cantilever racking previously supplied and installed by APC), new conventional pallet racking, as well as new light-duty shelving into this world-class 18 500 m2 warehouse,” says Deon Jennings, operations manager at APC. “The solution also included two 700 m2 mezzanine levels, supported by the actual pallet racking, to create floor space for APC’s M7 light duty racking and the unique Simplos boltless shelving system.

To transport smaller items to and from the upper mezzanine levels, APC installed two automated

incline belt conveyors. These eliminated the need for operators to carry any loads, which has improved safety as well as general productivity.

World’s largest conventional pallet racking for consumer goods warehouseA leading multi-national distributor of fast mov-ing consumer goods, who prefers to keep its market advantage undisclosed, contracted APC to design and install a 90 000 m2 conventional pallet racking system – the world’s largest, where a total 187 000 pallet positions were achieved.

“The specifications stipulated a future increase in pallet stock keeping units – going from the initial conventional pallet racking, to very narrow aisle [VNA], and eventually, to complete warehouse automation for extreme pallet densities,” explains Fred. APC Consult worked alongside the customer for almost 18 months to design a warehouse that will accommodate all of these future designs and ensured the columns were designed within one racking bay location, which meant no loss of aisle space or storage space for any of the solu-tions. The same principle applied when it came to the floor joint designs as they also needed to be adaptable to suit all the different scenarios.

“As part of a complete warehouse solution, our client has signed a full maintenance contract to secure a fixed price per pallet position. This requires a monthly site inspection by our After-Sales Field Engineers, which ensures the customer remains within the European safety norms,” Fred concludes.

Fred Albrecht, APC Storage Solutions SATel: 0861 61 61 61, Int. tel: +2711 974 9060Fax: 0861 61 61 62, Int. fax: +2711 974 9138E-mail: [email protected]

Design and install a 90 000 m2 conventional pallet racking system – the world’s largest

Page 6: Supply Chain Today October 2012

6 Supply Chain Today October 2012

Name of Company Acrow Racking & Shelving

APC Storage Solutions SA

Barpro Storage SA

Southern Storage Solutions -

Dexion

EM Shelving Storage

Solutions

ESE Manufacturing

First Storage Concepts

(Cape Town)

Contact: Craig Annandale

Fred Albrecht

James Cunningham

Ron Bonthuys

Andy Corbellari

Stanley Aucamp

Etienne Louw

Type of Shelving:* Bolted Shelving* Boltless Shelving* Cantilever Racking* Drive-in Rack* Mezzanine Floors* Mobile Rack* Pallets/Carton Flow Rack

* Push Back Rack* Retail/Wholesale Shelving* Shuttle Racking * Small Parts Storage* Standard Pallet Racking* Other

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Automated ASRS Warehouses, Automated Stacker Cranes and Miniloads, Self-support Warehouses, Warehouse Management Systems, Warehouse Control Systems, Rack Clad Warehouses, In-a-Box Miniloads, Vertical Lift Modules & Carousels, Horizontal Carousels, Gangway Systems, Narrow Aisle High Bay Racking, Box Conveyor System, Pallet Conveyor Systems

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Do you work to SEMA (Storage Equipment Manufacturers Association)?

Yes Yes Yes Yes Yes Yes Yes

Do you manufacture and/or supply?

Manufacture Manufacture and Supply

Manufacture Yes Manufacture and Supply

Manufacture and Supply

Manufacture and Supply

Manufacturing Standards (ISO)?

Yes Yes - - Yes Yes Yes

Turnkey Projects? Yes Yes Yes - just mobile

Yes Yes Yes Yes

After-sales service/training?

Yes Yes Yes Yes Yes Yes Yes

Approximate turnover in 2011/2012?

R250 Million 20% Y on Y Growth R15 Million - - - R20 Million

Number of staff? 120 252 10 + - 16 26 10

SURVEY

Racking & Shelving Survey

Page 7: Supply Chain Today October 2012

Supply Chain Today October 2012 7

First Storage Concepts (KZN)

Krost Shelving and Racking

Linvar Palian Racklock Spode Storage Solutions

Storequip Group

Universal Storage Systems

Andrew Bailey

Iain Skudder

Nicky Farrell

Johan Crafford

Werner Serfontein

Shaun Keppler

Ron Stoltz

JanBreytenbach

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Galvanised Longspan Racking

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Yes Yes Yes Yes Yes Yes Yes Yes

Manufacture and Supply

Manufacture and Supply

Manufacture and Supply

Manufacture Manufacture Yes Manufacture and Supply

Manufacture and Supply

Yes Yes Yes Yes Yes Yes - Yes

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes

- - - - - - - -

15 180 52 - - 24 390 135

Racking & Shelving SurveySURVEY

Page 8: Supply Chain Today October 2012

8 Supply Chain Today October 2012

Page 9: Supply Chain Today October 2012

Supply Chain Today October 2012 9

W ith its existing fleet of heavy-duty trucks comprising 300 premium-class GerMan truck-tractors, Pinetown-based CTP has procured 30 new

Man TGS WW 26.440 prime-movers to service its tanker division.

“Our truck fleet is made up predominantly of Mercedes-Benz Actros models but includes 50 Man TGA derivatives which have served us well since 2006. We heard good market reports about the excellent fuel efficiency of the TGS WW after it was launched in South Africa in 2010 and procured five new TGS WW 26.440s from their Pinetown dealership as part of our three-year fleet replacement cycle. This proved a fortuitous move - the TGS WW 26.440 is setting new fuel consumption benchmarks for our fleet,” says Inderan Naicker, Director, CTP Bulk Division.

Margin-sensitiveConsistently rising die-sel prices have now made fuel expenses the number-one operating cost for professional transporters (surpassing payroll) and thus, every effort is required by both truck suppliers and op-erators to introduce new equipment to help re-duce fuel consumption.

“The professional truck transport industry is ex-tremely margin-sensitive and even the smallest amount of fuel saved can have a huge impact on operator success in securing new business. There is also a growing imperative to reduce the carbon footprint of truck fleets and because CO2 emissions are di-rectly related to fuel

consumption, the extremely fuel-efficient TGS WW 26.440 will also help contribute to CTP’s environmental protection efforts,” explains Bruce Dickson, Deputy CEO, Truck & Bus SA.

Earmarked to transport bulk fuels, chemicals, bitumen and engine lubricants for large clients including Sappi, Mondi, Engen and Shell, CTP’s TGS tanker rigs will travel an average distance of 12 000km per month (per unit), transporting a 36-ton payload between Durban and Gauteng and as far afield as Cape Town, Zambia and Botswana.

Hilly terrain“While traditional longhaul operations often opt for maximum horsepower to overcome the chal-lenges posed by pulling a heavy load over hilly terrain, the driveline on the TGS WW 26.440 has gear ratios optimised for southern African road conditions, which is proving most suc-cessful in getting the most out of the 12.5 litre engine.” explains Bruce. “With 440-horsepower under the hood delivering 2 100Nm of torque between 1200-1450rpm, the TGS WW 26.440 strikes the perfect balance between power and fuel economy.”

With the expertise of Man’s Driver Training Team ensuring CTP’s drivers are fully conversant with the various fuel-saving and safety features on the

Fuel expenses the number-one operating cost for professional transporters (surpassing payroll)

A Fortuitous Move

Established in 1979 as a ‘one man’ operation, Crossmoor Transport & Plant (CTP) services a wide range of applications

including longhaul transport of bulk liquids, side-tipper haulage, waste removal and abnormal load transport.

Forging a long-term relationship: Crossmoor’s Plant division director Alvin Naicker, its founder P Naicker, Inderan Naicker and Man’s Bruce Dickson

TRANSPORT

Page 10: Supply Chain Today October 2012

10 Supply Chain Today October 2012

One of the safest trucks on the road anywhere in the world

Crossmoor’s Inderan Naicker is confi dent the Man TGS WW 26.440 will signifi cantly reduce running costs

stringent safety codes and the TGS WW has all the right technologies to make it one of the saf-est trucks on the road anywhere in the world, including ABS, ESP, ASR, hill-start assist and cruise control. “Driver fatigue is always a concern for longhaul operators but our drivers are really impressed with the comfort and roominess of the TGS WW sleeper cab and find the effortless Man TipMatic transmission a real energy-saver,” adds Inderan.

Unprecendented warrantyTo ensure lowest possible total-cost-of-ownership on the new TGS fleet, CTP and Man Pinetown have compiled a Manufacturer ’s warranty and service contract that is unprecedented in the extra-heavy truck category, says Bruce Dickson. “We’ve bolted onto the standard four-year/600 000km TGS WW warranty a three-year/450 000km bumper-to-bumper service contract with a fixed CPK rate that is almost 50% lower than the industry norm. We’re able to offer this low servicing rate because we’ve done our homework on the TGS WW, perfecting its driveline, electron-ics and cooling system for local conditions which significantly improves component longevity.”

In conclusion, Inderan states, “Our new trucks come with a preferential trade-back agreement which, coupled with the warranty and service contract which covers the entire lifecycle of the vehicle in the CTP fleet, we’re looking forward to the greater cost-predictability, productivity and peace-of-mind these fixed costs, and the trucks themselves, will bring to our operation.”

Man Truck and Bus, Naseera Barradeen, Tel (011) 928-6924, Emai: [email protected], www.Mantruckandbus.co.za

TRANSPORT

TGS WW 26.440, the five currently deployed units in the CTP fleet are registering fuel consumption figures between 2 to 2.2 litres per kilometre. “An improvement on other vehicles in the fleet of between 15-20%,” says Inderan.

As a transporter of Dangerous Goods for mul-tinational corporations, CTP must comply with

Bruce Dickson is championing Man’s conquest of the premium extra-heavy truck market

TGS WW 26.440, the five currently deployed units

Page 11: Supply Chain Today October 2012

Supply Chain Today October 2012 11

CLEANING

The services management company offers cleaning, security and technology services, with ongoing contracts across the retail, commercial and industrial sectors.

“From being the new kid on the block, to a re-spected contender in niched services, we have established long and successful relationships with all our contractual customers,” Rachel tells “Supply Chain Today”.

Clean focus“First we conduct a site survey to find out what the client’s cleaning requirements are, then provide the labour and all the equipment needed onsite. Clients usually take a year-long contract, after which they can renew, cancel or adapt it. We have permanent staff onsite, cleaning full-time at 99% of our sites,” she reveals.

Kallvest provides full-time onsite labour and equipment for routine and period cleaning of of-fice buildings and equipment, effective and fast ‘invisible cleaning’ routines at retail outlets (de-signed to minimise shopper disruption) as well as specialised cleaning of factories and warehouses. They don’t however, focus on hazardous cleanups.

In addition to the regular cleaning services pro-vided at warehouses and distribution centres, a full clean up - from top to bottom - is scheduled, usually on a quarterly basis.

Mammoth task“Some warehouses are ‘ginormous’ and in most cases the ceilings are a few stories high, a mam-moth task from an operational point of view. We use a modern automatic scrubber-drier and effortlessly clean areas that would take twenty to thirty cleaners with mops and buckets, hours to do, while cherry pickers are used to reach

high levels. By making use of the ‘Sinner Circle’ (temperature, chemicals, time and mechanics) approach correctly, it allows us to be effective and economical in our cleaning routines,” ex-plains Rachel.

She believes that in all sectors, cleaning should be done as quickly, effectively and with as little interruption as possible. “With stringent quality control and clear systems abiding by the Safety, Health and Environmental Act, we ensure areas are both safe and clean,” she reveals.

Warehouse automationWhen we ask about the trends in local and international warehouse cleaning, Rachel says automation is definitely one of them. “Since the turn of the century we have seen the develop-ment of specialist industrial cleaning machines and equipment for every conceivable application. We have varied choices of machines, which are robust, reliable, easy and safe to operate and have a high performance capability,” she adds.

“Cleaning has become increasingly sophisti-cated as new technologies are constantly being developed to work towards cost efficient and environmentally-friendly solutions. The majority of our cleaning equipment is imported from abroad such as Wetrock professional cleaning systems. However, we also use locally manufactured technology such as the walk-behind single disk scrubber,” she adds.

Green approachThe company is quite outspoken about its envi-ronmental stance. Kallvest uses cleaning products that are certified eco-friendly, such as Ecocert, Green Seal, Euro Flower and the Nordic Swan. The products are biodegradeable and reduce the risk of polluting the environment.

A new category of chemicals known as biological augmentation chemicals has been developed and are said to be biodegradeable. “These chemicals

Calculated Cleaning In-motion

“Cleaning is a challenge that has faced mankind from the genesis of history to

modern day living,” says Kallvest operations manager, Rachel van Dyk.

Cleaning should be done as quickly, effectively and with as little interruption as possible.

Page 12: Supply Chain Today October 2012

12 Supply Chain Today October 2012

introduce specific strains of microorganisms to an environment and control the causes of bad odours, for example in urinals and drains. It’s the ‘good’ bacteria killing the ‘bad’ bacteria concept,” she explains, adding that the majority of the eco-friendly chemicals do not require hot or warm water at all, saving on energy and water costs.

New filtration technology also allows the company to recycle water in the machinery and equipment they use.

Time and motionRachel explains that surveys have shown that 80% to 90% of cleaning costs are labour-related. “The optimum use of labour has therefore been the top priority for us as industrial cleaning special-ists. Through accurate time and motion studies, these specialists have been able to determine the relative efficiency of various cleaning techniques.

“Once we have decided on a technique or com-bination of techniques, we are able to calculate the personnel required to clean a specific area or even a complete building or warehouse. Sub-sequent performance by cleaning personnel can

CLEANING

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

It’s the ‘good’ bacteria killing the ‘bad’ bacteria concept

be measured against these proven values and corrective action taken. To achieve the required productivity levels, training of staff is vital,” she explains.

Page 13: Supply Chain Today October 2012

Supply Chain Today October 2012 13

A reason to outsourceWe ask why companies should choose Kallvest over handling cleaning operations inhouse? “There are ways and means of cleaning ef-

fectively, using the right chemicals and considering factors such as the correct pH for each material. We have the exper-tise, so we’ll clean it the best way,” she insists.

“Secondly, we take care of the labour issues - the human resources factor – as well as pensions, UIF and workman’s compensation reg-istrat ion etc. We take responsibility for replacing sick employees, and those on leave, which is less likely to hap-pen with inhouse

staff. We take away that whole schlep from the customer,” she concludes.

Kallvest, Rachel van Dyk, Tel: (011) 794-4060, Email: [email protected], www.kallvest.co.za

CLEANING

Page 14: Supply Chain Today October 2012

14 Supply Chain Today October 2012

When downtime is NOT an option!

WE ALSO SELLPRE-OWNED FORKLIFTS

WE HAVE TRUSTED FORKLIFT RENTALS TO SUIT YOUR EVERY NEED

Terms & conditions apply. Subject to prior sales. @GoscorrentalGoscor Rental Company

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

[email protected] • www.goscorrental.co.zaA proud member of the Goscor Group of Companies

Page 15: Supply Chain Today October 2012

Supply Chain Today October 2012 15

Are we using the best vehicle configuration for this operation?”

All of this translates into financial considerations for schedulers: what is the cost per order? What is the cost per route? Is the order and/or route as profitable as it can be? Different scheduling strategies can have a dramatic impact on the bottom line.

“I’m amazed that many companies still have transport schedulers who do not use applica-tions to assist with their operational transport schedules. In addition they should also use the systems available to look at strategic and tacti-cal transport management aspects,” adds Tracy.

Optimising Your Operation’s Potential

Technology is fast closing the gap on the planning and route scheduling of today’s highly competitive transport operations.

Benefits of optimising routing and scheduling processes

6 Grouped orders in the same geographical location (zoning)

6 Route, load and fleet profiling

6 Planning in required driver rest breaks

6 Reduces overtime costs

6 Better staff time utilisation on value-added services

6 Improved vehicle utilisation

6 Fewer assets to meet the same requirements

6 Reduces vehicle maintenance

6 Reduces empty legs

6 Pooling and hub-based routing opportunities

6 Multi-leg optimisation

6 Improved warehouse picking and stacking processes

6 Reduces a company’s carbon footprint and CO2 emissions

6 Integrates with manufacturing, TMS, WMS and track-and-trace systems

6 Improved customer service levels (OTIFEF – on time in full error free)

Supply chain focus has shifted from inven-tory cost reduction strategies in favour of reducing freight and transport costs. Transport is increasingly more of a com-

modity while the driver, vehicle, fuel and insur-ance costs remain difficult to control.

Tracy Cheetham of local company Pathfinder Logistics Solutions, tells “Supply Chain Today” that maximising your asset utilisation with tech-nology based routing and scheduling tools is key to eradicating additional supply chain costs.

“Manual planning and scheduling without the aid of intelligent systems is no longer sufficient for organisations that want to remain competitive. There are too many variables for the transport planner and scheduler to consider, plus the time to create viable schedules is simply not available. Once a schedule is created manually, it’s simply not feasible to create scenarios to establish the most optimal schedule.”

Many variablesWithin the many variables that need to be taken into consideration include the laws which regulate the industry such as driver hours, no-go zones (ie, hazardous material in residential areas), CO2 emission tracking, product compatibility (combustibles, food and chemicals) and vehicle weight maximums.

Additional variables include customer restrictions such as vehicle size and delivery windows as well as vehicle configurations - weight, volume, size and type of vehicle (for example, a refrigerated, tanker or flatbed vehicle).

Road conditions also play a part - speed limits, peak traffic times, road elevation, vehicle restric-tions, tarred, dirt, under construction and toll fees.

Says Vincent van der Riet, also from Pathfinder Logistic Solutions, “In addition to these there are network considerations such as where are the customers? Where are the depots? Where do the vehicles replenish from? Where do they need to overnight? What are the hours of operation?

ROUTING & SCHEDULING

When downtime is NOT an option!

WE ALSO SELLPRE-OWNED FORKLIFTS

WE HAVE TRUSTED FORKLIFT RENTALS TO SUIT YOUR EVERY NEED

Terms & conditions apply. Subject to prior sales. @GoscorrentalGoscor Rental Company

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

[email protected] • www.goscorrental.co.zaA proud member of the Goscor Group of Companies

Page 16: Supply Chain Today October 2012

16 Supply Chain Today October 2012

There are several opportunities for transport op-timisation considering distance, time and load. Usually there is a trade-off of one at the expense of another. Weighted optimisation provides a mechanism to identify which of these have a higher priority and offers improved trade-offs while meeting the primary business objective — of meeting deliveries on time and in full.

Manual scheduling Manual scheduling becomes more complicated as the number of orders to be scheduled increases together with an increasing number of network points, vehicles and vehicle configurations.

Manual systems can prove to be a messy business. Says Vincent, “Manual scheduling is time and labour intensive and cumbersome to re-schedule if parameters change such as adding a new ve-

hicle to the mix. Within the manual space there is no room for an optimal dynamic environment, for example one person usually has the system ‘rules’ knowledge in their head which is not easily transferred to others, plus this can take time to learn. Also how do you know whether you have achieved optimal utilisation?”

Advanced planning and scheduling toolsRouting and scheduling packages use computer-based algorithms to present the outcome of vari-ous ‘what-if ’ scenarios based on various pre-set parameters.

With the known constraints formally captured into the system, several scenarios can be run in a very short time-frame and can show which model provides the best cost-saving opportunities. Not only does this provide forward planning options (with increased supply chain visibility) but in an operational environment, it caters for human intervention to manage unplanned disruptions.

Benefits and cost savingsThe benefit of optimised routing and scheduling tools provide a rapid measurement of effective asset utilisation of people, vehicles and products. Plus cost savings to all parties in the supply chain are tangible with the removal of ‘waste’ in the transport system.

“With these tools, schedulers can focus more on customer service and on responding to events in the day’s schedule. Often there are fewer vehicles needed to do the same workload or more capacity may be freed for expanding the business before adding additional vehicles,” adds Tracy.

Within the context of transport management systems, routing and scheduling packages of-fer palpable cost reductions and with track and trace technology provide integration and visibility into the supply chain. Orders can be imported, schedules are uploaded and progress tracked for service agents to respond to queries on expected delivery times. Dynamic execution of schedules is also possible and KPIs are measureable.

Email: info@pathfi ndersolutions.co.za, www.pathfi ndersolutions.co.za

ROUTING & SCHEDULING

Several scenarios can be run in a very short time-frame

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BLT, specialists in materials handling equipment, supplies a mobile container handling system that ensures the safe handling, transportation and storage of hazardous and non-hazardous substances.

“The secure handling of hazardous materials - that include chemicals, flammables, corrosives, plastics and fuels - is an important consideration for the materials handling industry,” says Clinton van den Berg, products manager for BLT. “The robust Mobicon system, which meets the requirements for hazardous materials handling, is designed to carefully take any size tank off the back of a truck and take it where it needs to go for safe storage.

The low centre of gravity of this system enhances stability, preventing it from rolling over. The two tower design provides the flexibility to be able to operate on slightly sloping or uneven surfaces, as well as compacted gravel yards, bitumen or standard thickness concrete.

Another advantage of this container handler is that it requires very little maintenance, unlike conventional container equipment, where ongo-ing maintenance is necessary. Initial capital investment costs are also significantly lower.

Safe Handling for Hazardous MaterialsThe simple design of the low mainte-nance Mobicon unit includes an eco-nomical 60hp diesel engine, coupled to a hydrostatic system, for reduced fuel costs. Consumption is 5 litres an hour compared with 22 l/hr for other machines.

Enhanced safety has been critical in the design of this system. The operator

Mobicon for handling hazardous materials

now has a clear view of the working area and instead of staff having to work at a trailer height of 1,5 m, they are now able to work safely at ground level.

Clinton van den Berg, BLT, Tel: (031) 274- 8270, Email: [email protected], www.biglifttrucks.com

First National Battery (FNB) has launched a range of high frequency motive power battery chargers in South Africa.

These chargers have a modular design which means that they are uniquely flexible to suit almost any motive power battery charging requirement, whether 24V, 36V, 48V, flooded, gel or AGM battery technology.

Enatel Motive Power high frequency charger systems are designed especially for charging traction batteries. The high frequency power conversion technology allows the chargers to operate more efficiently at up to 95%, which means

that they use around 20% less energy while being a fraction of the size and weight of traditional chargers. The reduction in power use saves money and ensures a reduced carbon footprint. In addition, the chargers are based on rugged and reliable proven telco battery charger modules that have been suc-cessfully operating for over 25 years.

This technology is aimed at improving turnaround time in the charging regime of motive power batteries in electric vehicles including AGV’s, forklifts and other materials handling equipment.

First National Battery, Toll free: 0800 1112-600, www.battery.co.za

High Frequency ChargersMARKET FORUMMARKET FORUM

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18 Supply Chain Today October 2012

Amendments to the National Road Traffic Act which came into force on 1 September 2012, require owners to have their vehicles microdotted or verify that the vehicles have microdot identification (Government Gazette 35130 dated 09 March 2012).

In addition, the Second Hands Goods Act of 2009 which governs the han-dling of second hand (used goods), also stipulates under Regulation 24 (1) (2) (d), that dealers need to keep

Compulsory Microdotting of Vehicles

Value Logistics is proud to announce that they have secured the sole distributorship of Still equipment in South Africa.

The Still factory is based in Germany and manufactures and supplies a complete and comprehensive range of forklift trucks, platform trucks, tractors and warehousing equipment, complement-ing Value’s existing Komatsu offering with an all-inclusive range to suit all applications and installations.

Still have a broad variety of products to cater for all options. The Still product range is designed for quick battery changes, have extremely light steer-ing for ease of manoeuvrability thus reducing driver fatigue.

The forklifts’ powerful diagnostics within the controller allows faults to be traced quickly, reducing down times and servicing costs.

Important driving characteristics can be adjusted using the digital controller, such as acceleration and braking char-acteristics as well as a pre-selection of maximum speeds, for efficient vehicle operation.

Value Materials handling division offers

Complementing its Offering

over-the-counter genuine spare parts as well as recommended spares lists for maintenance parts for the Still and Komatsu brands and most other leading materials handling brands.

Value Materials Handling have the expertise to repair and refurbish any make and model of forklift. The divi-

sion has a national team of qualified materials handling technicians who are available to respond promptly to breakdowns, seven days a week, 365 days a year.

Value Materials Handling, Tracey Le Roux, Tel: (011) 929-6700, Email: [email protected]

a second hands goods register and record all its particulars; including its microdot identification.

What all these provisions mean, in a nutshell is that:

6 A new or second-hand vehicle registered after 1 September 2012 must be fitted with microdots (fit-ted by OEM’s, MIB’s and motor dealers – not operators)

6 A vehicle presented for Police

Clearance after 1 September 2012, should also be fitted with microdots; or its microdot identification should be verified.

6 Vehicles traded into motor dealers, should they have a microdot iden-tification, should then be verified before being entered in the dealer ’s register.

The Road Freight Association, Tel: (011) 974-4399, Fax: (011) 974-4903, Email: [email protected], www.rfa.co.za

MARKET FORUMMARKET FORUM

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A new mobile steel retail-ing centre commissioned by AltX-listed steel retailer Alert Steel in Mokopane will offer communities in the area easier access to much-needed steel and steel related products.

The mobile centre in Bak-enberg is the latest in a nationwide project intended to give Alert Steel a deeper penetration into rural markets as well as expanding the group’s network into areas where it currently has no presence. So far 20 other mobile centres have been deployed in strategic areas across the country.

Known as the Alert Express

New Mobile Centre

Last year saw Linde Material Handling launch the E20 to E50 Linde electric forklift truck series onto the market, in 19 different standard model designs. The range of versions on offer is now even more impressive thanks to the new E40 to E50 Linde truck models with a lower overall height for four, four-and-a-half and five tonne-load capacities.

The special models in the current Linde series of electric forklift trucks are primarily used in container yards, or by companies which require the trucks to be driven through doors with a particularly low overhead clear-ance, or to be used in hall areas with low ceilings. The new truck models, popularly referred to as “container versions”, have an overall height of

Lower than Standard

just 2 220 millimetres, meaning that they are 140 millimetres lower than the standard electric forklift trucks with a lifting capacity of 4 to 5 tonnes. All three container version truck models have a load centre of gravity (LSP) of 600 millimetres. What’s more, the Linde E 50 model comes in two LSP versions of the standard models (500 and 600 millimetres).

When it comes to the two Linde E40 and E45 models, a triplex lift mast can be used to reach a lift height of 4 225 millimetres, while a triplex lift mast is fitted to Linde E50 models for a lift height of 3 925 millimetres and maximum free lift.

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

container project, the retail-ing centres are converted shipping containers with a floor area of 36m². One half of the floor space will be used to stock long length items while the other half will be used to stock steel-related items and will also serve as the retail floor. The containers will stock all fast-moving products as identified by the nearest Alert store and customers will also be able to place orders for items not held in the container but available at the supporting branch.

Johan du Toit, Alert Steel, Cell; 082 416-8888, www.alertsteel.co.za

MARKET FORUMMARKET FORUM

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20 Supply Chain Today October 2012

Zetes South Africa is consolidating its operations into a single entity to focus on expansion and growth in local markets and Africa.

After the acquisition of the ProScan Group in July 2011 by Zetes Industries, the South African subsidiary concen-trated on aligning the local team to global group practices and operating procedures.

In line with this growth strategy, Zetes SA will consolidate its three operations, namely Zetes, Zetes Media and iData Distribution, into one strong entity,

Focusing on Growthenabling customers to have access to industry-leading supply chain solutions from a single source.

Andrew Fosbrook, managing director of Zetes SA comments, “Significant benefits for customers include op-erational efficiencies, streamlined procurement and enhanced customer services, without compromising our specialised expertise that every supply chain solution demands.”

Zetes, Tel: (011) 615-3103, Email: [email protected], www.zetes.co.za

Andrew Fosbrook, managing director of Zetes SA

Goscor Access Rental (GAR), the mobile elevator work platform (MEWP) rental company in Imperial’s Goscor group, reports that the demand for its US- manufactured Hy-Brid HB-830 scissor lifts is beyond expectation.

“There is a need almost everywhere in commerce for these machines, which are, in essence, industrial stepladders. They are compact, very easy to handle, and manufactured to the exacting stan-dards that have made Hy-Brid such an internationally renowned brand,” says

Dean Jones, GAR operations director.

He adds that working at height has never been as convenient. “With its zero-turn radius, picking stock in a retail store or warehouse means that operators can manually push this machine to where they need it easily, safely and quickly. Also, it is extremely sturdy and although very compact, the deck allows operators to carry whatever they need in terms of equipment,” Dean adds.

He says that the Hy-Brid product is part

of a planned expansion in the range of machines in the GAR fleet so that customers will have greater choice. “For example, we have recently also taken delivery of at least 25 units, most of which are big diesel boom lifts from 85 feet platform height up to 135 feet.”

Dean Jones, Goscor Access Rental, Tel: 0861 4675438 (GOSLIFT), Email: [email protected], www.goscoraccessrental.co.za

Dean Jones, Goscor Access Rental op-erations director, demonstrating the ease of operation of the new Hy-Brid HB-830 scissor lift

Immediate Success

MARKET FORUM

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Supply Chain Today October 2012 21

STRATEGIC SOURCING

C ompanies that are sourcing globally have had to adjust their strategies, and will need to continue to adjust their strategies because of this. For example, a major US

company recently elected to have products made in Ethiopia and then decided to switch manufac-turing to Egypt at the last minute because of the unstable government in this region. Geo political events will continue to have a great impact on risk to supply. Companies now and in the future will need to be more attuned to these changes as they select potential sources of supply.

They may need to either reconsider using these sources of supply or will need to establish the necessary risk mitigation strategies including, for example, dual country sourcing, additional inventory in the supply chain, building adaptability and flexibility into supply chains, capability to switch relatively quickly to alternate sources of supply, etc.

Agile organisations Information is and will continue to be the “currency” of the supply chain. In the future, information on areas like fluctuations in national currencies and varying inflation rates among industrialised and developing countries and an organisation structure capable of swiftly and accurately transferring knowledge and skills on a global basis will be an essential element both of maintaining competitive advantage and a key means of managing risk.

In order to accomplish this, supply organisations

will need to master a complex set of relationships and have supply leadership in place with the ca-pability of managing logistical and informational flows to support global supply strategies.

Advancements in technology Technology continues to change and evolve at a rapid rate. This technology underpins and enables global supply. Supply managers will need to keep abreast of changing technology and ensure that they are able to leverage this technology as a means of both enabling global supply and miti-gating risk. As supply managers cast their nets ever wider in search of new sources of low cost supply they will need to continue to evaluate the technology capabilities of potential suppliers in order to ensure that these companies have the necessary technologies in place to link with and support current technologies in place within other elements/entities within the supply chain.

Protection of the environment Risks to the environment, from foreign suppliers, will continue to be a major source of concern for supply managers. The trend by governments, institutions and companies to look to protect the environment and to ensure that environmentally safe practices are in place is expected to continue and to gain momentum.

Contractual and legal riskHorror stories abound concerning supply from foreign countries and recall scares, from lead in children’s toys, to tainted baby milk formula, to poisoned pet food. As supply managers continue to expand their supply networks they will need to be keenly aware of the social and legal ramifica-tions involved in production of poor quality goods by foreign suppliers that can pose a potential serious health risk to humans and/or animals. These types of risks can be catastrophic if they eventuate and probably represent the greatest threat to continuity of supply and to company reputation.

Llewellyn Roberts, President and founder of L.Roberts & Associates Inc. Tel: + 1 419 861 2563Email: [email protected], (Acknowledgement to Sapics)

Managing Global Supply Risk:

Now and In the Future

Decided to switch manufacturing to Egypt at the last minute because of the unstable government in this region

The world continues to experience major upheavals including politically. Several parts of the world, while seemingly

attractive from a low cost country sourcing perspective, pose a risk to continuity of supply. Political factors such as instability of governments, lack of law and order, etc, have

implications for supply risk.

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22 Supply Chain Today October 2012

TFD | Imperial [A4 advert]path.indd 1 9/14/12 2:23:06 PM

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Supply Chain Today October 2012 23

TFD | Imperial [A4 advert]path.indd 1 9/14/12 2:23:06 PM

RETAIL

Botswana ranked 20th in this year ’s GRDI. Botswana’s entry into the GRDI ranking is a pre-cursor to steadily developing countries in the Sub-Sahara Africa region

that could emerge as favourable retail markets in coming years.

Although the Arab Spring uprisings had a negative impact on the rankings of several MENA countries including Lebanon (-10 versus 2011), Morocco (-7 versus 2011) and Tunisia (-12 versus 2011), several countries from the region are still high on the ranking: UAE (#7), Oman (#8), Kuwait (#12) and Saudi Arabia (#14).

Published since 2002, the GRDI ranks the top 30 developing countries for retail investment worldwide. The Index analyses 25 macroeconomic and retail-specific variables to help retailers de-vise successful global strategies and to identify emerging market investment opportunities.

ResultsWhile the world’s largest developing markets still tempt the largest global retailers, and show no signs of slowing down as a source of growth, many smaller, untapped markets are providing new growth opportunities. New countries in the 2012 Index include several “small gems” such as Georgia (#6), Oman (#8), Mongolia (#9) and Azerbaijan (#17) that are showing progress as attractive destinations for global retailers, particularly specialty and luxury players. These markets, though small in total retail market size, have strong fundamentals that appeal to retailers targeting a concentration of wealth and seeking to be first movers in fast-growing markets.

Michael Moriarty, AT Kearney partner and study

co-leader comments, “Given the accelerated growth rates of developing countries compared with the anemic growth in European and North American markets, global retailers must have a strategy for expansion into developing markets. In the past five years, US-based Wal-Mart, France-based Carrefour, UK-based Tesco and Germany-based Metro Group saw their revenues in developing countries grow 2.5 times faster than their home markets.”

Latin America’s expanding, dynamic retail sector and strong economic growth has driven strong results with seven countries included in the GRDI this year. Many retailers have entered Latin America in the last few years.

RankingsBrazilRetail sales per capita in Brazil (#1 in the Index) have grown 12 percent per year for the past four years to reach $5,514, the third largest of the countries ranked in the GRDI. The retail market size increased 15 percent last year, and consumer spending has increased by nine percent per year since 2007. In 2011, retail sales accounted for 70 percent of Brazil’s consumer spending.

ChileChile (2nd) has one of the most sophisticated and competitive retail markets in the region. The country is one of Latin America’s fastest-growing economies, with expected GDP growth of 6.2 percent in 2012. Inflation is low and country risk is low.

ChinaChina moved up in the 2012 GRDI, ranking #3. The country’s future retail growth remains positive, with double-digit annual sales growth expected. However, inflationary pressures are driving up rents 30 percent per year, and labour costs are growing 15 percent a year. China is one of the world’s largest luxury goods markets, with more than 100 brands active in the country.

Global Retail Development Index

The 2012 Global Retail Development Index (GRDI), released by the AT Kearney’s Global Consumer Institute shows the ranking of the top 30 developing countries for global retail expansion. Brazil, is #1 for the second year in a row driven by a growing middle class economy, high consumption rates, a large, urban population, and reduced political and financial risk. In addition, Brazil’s relatively young population and high per capita

spending in the apparel and luxury sectors make this country a top destination for specialty retailers.

Botswana’s entry into the GRDI ranking is a pre-cursor to steadily developing countries in the Sub-Sahara Africa region

Page 24: Supply Chain Today October 2012

24 Supply Chain Today October 2012

Han Ben-Shabat, AT Kearney partner and study co-leader says, “Talent identification and devel-opment is just as important to successful market expansion as an underserved market and a growing consumer base. Wage inflation and staff turnover are significant obstacles for retailers entering many of the top developing countries.”

To read the full 2012 GRDI Report, please go to www.grdi.atkearney.com

RETAIL

2012 Global Retail Development Index Ranking

Country 2012 Rank

2011 Rank

Change

Brazil 1 1 0

Chile 2 2 0

China 3 6 +3

Uruguay 4 3 -1

India 5 4 -1

Georgia 6 N/A N/A

United Arab Emirates 7 8 +1

Oman 8 N/A N/A

Mongolia 9 N/A N/A

Peru 10 7 -3

Malaysia 11 19 +8

Kuwait 12 5 -7

Turkey 13 9 -4

Saudi Arabia 14 10 -4

Sri Lanka 15 21 +6

Indonesia 16 15 -1

Azerbaijan 17 N/A N/A

Jordan 18 N/A N/A

Kazakhstan 19 14 -5

Botswana 20 N/A N/A

Macedonia 21 29 +8

Lebanon 22 12 -10

Colombia 23 24 +1

Panama 24 26 +2

Albania 25 13 -12

Russia 26 11 -15

Morocco 27 20 -7

Mexico 28 22 -6

Philippines 29 16 -13

Tunisia 30 18 -12

UruguayUruguay (4th) is becoming a retail destination. Despite its relatively small local population, Uru-guay’s high urbanisation and strong consumption levels are attractive to retailers. The economy is progressing - annual GDP growth of 6 percent GDP since 2007 and unemployment is at an all-time low.

IndiaIndia (5th) remains a high-potential market with accelerated retail market growth of 15 to 20 percent expected over the next five years, supported by GDP growth of 6 to 7 percent, rising disposable income, and rapid urbanisation. Changes in FDI regulations were a major story in India last year. The changing FDI climate has provided an inter-esting dynamic to several international retailers’ entry and expansion plans for India. Organised retail penetration remains low, at 5 to 6 percent indicating room for growth.

Retail Talent Index One of the key lessons learned over the 11 years of analysing international retail expansion is the importance of finding and developing local tal-ent to make global expansion a success. New markets are only as effective as their workforces, and harnessing the local talent pool is critical for reaching customers.

As part of this year’s GRDI, the Retail Talent Index examines the best markets for retail talent. This index ranks the top 30 countries in the GRDI based on talent availability, labour regulations, and labour costs for in-store employees. This year the analysis points to Malaysia (#1), China (#2) and Chile (#3) as the developing markets with the top retail talent.

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Supply Chain Today October 2012 25

A ccording to the department of statistics “Quarterly Labour Force Survey, Quarter 1, 2012”, the total population

of South Africa that could be working is in the order of 33 million (and this is possibly a significant under estimation). Of this we have 25% unemployment. Realistically the unemployment rate

in South Africa (including “illegal” workers) is probably closer to 40%. This certainly presents a strong case for reducing the levels of automation – in an effort to find employment for everyone. After all, unemployment is one of the biggest challenges facing South Africa. Without jobs,

Warehouse Automation in South Africa

As consultants In South Africa, every day we are faced with the dilemma of increased automation

(and associated increased productivity) versus the need to

provide jobs.

WAREHOUSING

people slip into a vicious cycle of poverty, violence and dependency that is very hard to break and hugely costly for the country.

In contrast to this situation we are faced with a multitude of difficulties in providing employment. These include:

1 Wages are escalating well above the in-

flation rate. Coupled to this increased cost of labour is substantial increases in indirect labour costs (fire & hire costs, taxes, UIF, medical aid contributions, skills levies, increased leave pay, increased sick leave, training, increased labour administrative costs, etc).

2 The Congress of South African Trade Unions

(Cosatu), which has a very strong influence on South African Government, is largely focused on the need to support its members having “decent” jobs – which pay “decent” wages. This means much of their primary effort is to increase the

Martin Bailey, ChairmanIndustrial Logistic Systems

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26 Supply Chain Today October 2012

wages of their existing members, while at the same time procuring additional benefits – adding significantly to inflationary pressures, while at the same time decreasing operational productivity.

3 SA Government legislation has continually

focused on labour protection making it difficult to discipline and fire staff who do not perform. This has led to a substantial drop off in labour productivity. There is added confusion as Gov-

ernment struggles with a logical policy that will allow industry to remain competitive, while trying to satisfy their voters in appearing to support the “common” worker and provide work for the unemployed.

4 The Commission for Conciliation and Arbitra-

tion and Mediation (CCMA) currently hears over 140 000 cases per year. The threat of CCMA continually having a say in the labour process adds further uncertainty into the employer - employee relationship. It also adds further to labour cost and management attitude to labour and automation.

5South Africa has one of the largest inci-

dences of chronic diseases (TB, HIV/AIDS, etc) in the world, with an estimate of 10,6% of our population living with HIV. Because of the mobil-ity of relatively well paid warehouse labour, the percent of a typical staff in facilities living with HIV is high.

6 Because of poorly run services, bloated

municipal and quasi state operations, there is a continued massive escalation in local municipal costs, electricity, rates, services and related costs. This adds inflationary pressure to opera-

WAREHOUSING

Automation today is substantially cheaper than a few years ago

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Supply Chain Today October 2012 27

tions and continually forces companies operating warehouses to substantially reduce footprint. High rates have thus become a real incentive to optimise building footprint – and this can often best be achieved by automation.

7 From a supply chain point of view, because

of the virtual collapse of the rail system for freight transport, most goods moving to Gauteng, need to be shipped by road. The cost of moving containers inland (where most of our economy is based) is extremely high. With the cost of sea freight at only 1.5 to 2 times this amount – this penalty paid adds substantially to the cost of doing business in South Africa. Add some of the highest port charges (and congestion) in the world, and this further complicates the warehousing business nationally – with pushing companies to centralise (which creates large central facilities and these facilities need more automation).

8 Lastly in South Africa, we are faced with major

security issues. There is a huge cost involved in controlling the potential of theft throughout the supply chain. As we hire more and more people, these security costs increase, and contribute to a major portion of our operational costs. By au-tomating, many of the theft problems can simply be eliminated.

Pharmaceutical case studyWe are thus faced with relatively high costs of labour and low productivity. Consider The XYZ Pharmaceutical Wholesale Company. They oper-ate a medium-size warehouse in Gauteng and employ 75 people in their warehouse.

Their warehouse is relatively simple – using reach trucks and simple racking for full cases and carton flow rack and “pick to tote” with simple conveyor for “less than full cases”.

If they replace their split case facilities with a “mini-load” automated system, and increase the conveyors in the full case area, they can decrease their labour to 25 people! Because they are in the pharmaceutical industry, their estimated total cost of employment of labour is R120,000 per head per year. This means that the potential labour savings would be in the order of 50xR120,000 or R6 million per annum.

If the automated system costs R30m, this would give a payback of in the order of five years. Certainly, the automated system has associated increased maintenance costs, but this can be offset by:

• Overtime will largely be eliminated.• An estimated elimination of over R1m reduc-

tion per year in security personnel costs and a saving of over R1m pa in the elimination of internal shrinkage (theft).

• By installing the mini-load system, the stor-

age capacity in the “less than full case” pick area is tripled – reducing the need for building expansion. This alone may pay the capital investment.

• By automating they can also decrease the average response to orders from the present 4 hours to 30 minutes (from order to dispatch).

• There are tax benefits in purchasing capital equipment (in terms of depreciation of the capital investment).

The XYZ Pharmaceutical Wholesale Company

WAREHOUSING

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28 Supply Chain Today October 2012

0 8 6 1 F U S O W W W . F U S O . C O . Z A

L O Y A L S I N C E 1 9 3 2

FM16-270 with Van Body

FE6-109with Van Body

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

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Supply Chain Today October 2012 29

could even take this a step further and install an A-Frame system for fully automated picking of small “symmetrical” products and an Automated Storage & Retrieval System (AS/RS) for full pallet handling. This will reduce their labour force to 15 people – but at a substantially increased capital investment. The A-frame (at an investment of R10m and a saving of 20 people) appears to be viable, but the AS/RS at a cost of R50m and a saving of 20 people will not be viable – unless it allows the XYZ Pharmaceutical Wholesale Com-pany to stay on their existing site for another 10 years (because of the increased storage density it provides).

However, for a larger business (with more labour or with greater space pressures) more extensive automation may be viable, including:

• Robotics• AS/RS• Vertical Storage Units (VSU)• Mini-loads• Conveyors and Automatic Sortation• A-frames• Automated Guided Vehicle Systems (AGVS)

Besides labour saving, other benefits of the au-tomated system include:

• Substantially increased storage space in the same footprint

• Greater accuracy (inventory, picking, etc)• Faster response to customer orders• Need for less security• Drives operators (automation controls operator

speeds)• Less demand on WMS functionality• Less sensitive to strike action and “go slows”• Far simpler to manage.

More reliableIn the present South African environment, the case for automation is not simple. However, it is

WAREHOUSING

clear that payback is becoming more and more attractive. As labour costs increase and pro-ductivity decreases, and the cost of automation decreases, the case for warehouse automation is continually improving.

Systems exist to massively reduce labour espe-cially in industries that have large volumes, lots of stock keeping units and loose items such as motor parts, pharmaceuticals, health and beauty aids and fast moving consumer goods. These automated systems are improving every day, and automation today is substantially cheaper than a few years ago. The labour content of many warehouses can be decreased to as little as 20% of the existing manpower – with large increases in capacity, storage density and throughput.

Automation is also continually becoming easier to implement and more reliable. The risk of implementing automation is thus continually diminishing. Added to the potential of major savings in warehouse footprint – automation is becoming a lot easier to justify.

‘Catch 22’Certainly many companies will focus on their responsibilities to their shareholders first, ie, improving service and reducing costs, so profit-ability can be increased. How this is balanced with the need in South Africa to provide employ-ment will always be a vexing issue?

Perhaps the answer lies in the need to survive. If you don’t automate, your business will simply not be competitive, and you will not survive, and this will lead to an even greater loss of employment.

On the other hand – if you do automate - you are eliminating potential jobs, and adding to our massive unemployment problems. A perfect “catch 22” situation.

Martin Bailey, Chairman, Tel: (011) 656-1100,Industrial Logistic Systems (Pty) Ltd, www.ils.co.za

0 8 6 1 F U S O W W W . F U S O . C O . Z A

L O Y A L S I N C E 1 9 3 2

FM16-270 with Van Body

FE6-109with Van Body

BETTER

DISTRIBUTION

WEIGHTWEIGHT

BETTER

FOR MORE

DELIVERIES

PERFORMANCEPERFORMANCE

FM16-270FM16-270 with Van Body with Van Body

FE6-109FE6-109with Van Bodywith Van Body

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CONSUMPTION

PROFITPROFIT

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

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On April 1, 2002, the first OSR Shuttle was put into operation at Richter Pharma AG in Wels (Austria). It was not only the first small-parts warehouse with a shuttle system to be put into operation for KNAPP, but also the first shuttle system in the world. With two aisles of ten levels each and a total of 3,600 storage locations, the OSR Shuttle in the Richter Pharma warehouse system was an ideal first startup system. This OSR Shuttle is still in operating today and functions to the full satisfaction of the customer.

KNAPP made fundamental changes to the logistics market with the shuttle technology. In the first years, the OSR Shuttle systems were something new and exotic. Back then KNAPP had to work hard show that the shuttle-systems were reasonable alternatives to other automated storage systems for small parts. Since then, shuttle systems have become the state-of-the-art, and customers are constantly discovering new ways to use these fast small-parts systems. Shuttle systems have established themselves on the market; in addition to KNAPP, other companies have appeared on the market with various shuttle technologies and specializations.

Having been the pioneer of shuttle technology, KNAPP has by far produced the most installations. The growth is best seen in the number of shuttles produced: Up to now, about 10,000 shuttles have been installed. Yearly installation in the first two years topped at 120 shuttles, but in the last two years KNAPP installed 4,200 shuttles per year. In 2012, about 3,000 more shuttles can be added to the total.

As the world market leader in shuttle systems with 153 installed OSR Shuttle systems, KNAPP has an impressive number of references. KNAPP is not just a leader with respect to the number of references: The highest, longest and largest shuttle systems in the world were realized in KNAPP systems.

Ten years ago, a height of six metres and a rack length of 30 metres were considered adequate. A "large" system had three aisles and 60 shuttles. Sepa-rating the horizontal transport of containers from the vertical, the foundational principle of OSR Shuttle systems, proved itself so well however, that further ideas for shuttle systems were quickly implemented. Meanwhile, an entire family of shuttle products is now available for a wide variety of applications:

• The OSR Shuttle with single depth storage of loads up to 15 kg was specially developed for the pharmaceutical wholesale sector. The tray system optimally supports both picking and goods in processes.

• Originally developed for the picking of larger products, the OSR Shuttle with single depth storage of loads up to 32 kg now is employed above all for the buffering and sorting of dispatch containers.

• The OSR Shuttle Sorter for supplying goods in flow racks eliminates the existing dispatch sorting rack. By making the switch from conveyor components to a shuttle, the costs for this function can be lowered by about 30%.

• The new generation of OSR Shuttle has made the multi-depth storage of containers and cartons possible. Containers with a total weight of 50 kg can also be stored in with this system.

• The width of the telescope arms will be adjustable on the next shuttle model. With this feature, containers and cartons with different dimensions can be stored in one system.

For all of these systems, different lift designs can be selected. KNAPP is expecting exciting new challenges to come in the next ten years. Which OSR Shuttle systems will be available? Answering this question is not that easy. However, a few trends can already be seen. The development process will shift from introducing new systems to optimizing costs and performance. The systems are becoming larger and the demand for flexibility in the system is increasing. We will probably one day chuckle over the record dimensions of which we are so proud of today. One thing is sure: KNAPP will again be right out in front.

The OSR Shuttle Story

KNAPP Logistic South Africa (Pty) Ltd.Landline: 011 512 0621Email: [email protected]: www.KNAPP.com

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WMS & INVENTORY CONTROL

“I’ve been involved in supply chain for 20 odd years,” says Antony Makins, sales director at RedPrairie. “I was in sales first, then moved to ERP, then to manufacturing, then

supply chain. I fell in love with PC software and developed a passion for making positive change. This business is all about efficiency, which I love, Antony tells “Supply Chain Today”.

Sought afterRedPrairie has its global head office in Atlanta, Georgia, USA, with a vast network of additional offices worldwide. “Along with our office in Johannesburg there are 50 offices globally and 65 000 live sites internationally. RedPrairie has a well sought-after range of solutions, I’d rank it as one of the top two contenders in the market,” Antony says.

“Ultimately, the aim of our solutions is to make sure that every bit of efficiency is wrung out of the supply chain. We specialise in Warehouse Management Systems (WMS) but also do Transport Management Systems (TMS), ensuring optimum

efficiency here too. In the retail sector, we look at time and attendance and workforce manage-ment. This covers forecasting and scheduling to optimise staff efficiency.

Antony describes a basic outline of a typical installation. “We go in, do an analysis to assess the needs of the company. We’ll explain the return on investment clearly from the outset. We offer

proposals, provide needs analysis and make any necessary suggestions to management. From there they choose a vendor and the contract engagement phase begins.”

Global benefitsClearly there are countless variables involved in the process. A case in point would be the project for broad-based supply chain company, UTi. Providing a range of global integrated logistics to an international client-base, the company offers warehousing, transport management across a range of modes, manufacturing support, freight forward-ing, customs brokering and contract logistics, among others.

With its own background in providing seamless supply chain solutions to lower customer costs, UTi management clearly understood the importance of optimising workforce efficiency for

IT is an unforgiving industry, particularly for those who specialise in software designed to optimise efficiency. In these cases, products are evaluated not only on their own

performance, but also on the performance of the applications they control.

Antony Makins, sales director at Red Prairie

The system provides a string of tools and data to improve management skills, which, in turn, enables better labour planning

Make sure that every bit of efficiency is wrung out of the supply chain

A Force at Work

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WMS & INVENTORY CONTROL

continued cost reduction. “There is only so much you can do with traditional means. We had to find better tools to help our managers be more effective,” says Steve Sargunaraj, UTi’s Global Contract Logistics Process Manager.

Previously the company had monitored historical units per hour in the finished goods area, along with observing workloads to determine efficiency, but these measurements lacked sophistication.

New toolsRedPrairie’s Workforce Management system pro-vided a decision matrix to weigh factors such as functionality, integration capabilities, customer service, industrial engineering expertise, reporting, alerts, activity-based costing and price.

In addition, supervisors were given objective real-time data on which to evaluate performance. “Managers now have to manage tighter because we have better visibility to results,” says Steve. “For example, why does their group have so much non-productive time?”

This question can be answered using a string of tools and data to improve management skills, which, in turn, enables better labour planning. “For instance, we used to have four people assigned to the receiving area,” he continues. “Analysing the work with the new system showed we actu-ally only needed two.”

Securing businessThis eventually equates to improved customer

service, since reducing labour costs is part of UTi’s service offering. Beyond this, it helps secure new business. “When we bid on additional business, customers want to know how many people the operation will take and how we will achieve the cost savings. The solution gives us credibility, providing a competitive advantage over the other providers,” explains Steve.

“Our goal was to increase productivity 10-15 percent,” he concludes. “The savings have more than offset the cost. We were able to reduce our headcount by 10 FTEs, mostly through attrition. That is driving savings of $300,000 per year in this supply chain.”

Big newsThere’s more in the RedPrairie goody bag, how-ever, and Antony is eager to introduce the rest. “In South Africa our retail range is pretty exciting news. Major retailers are coming to us to save money and reduce costs. In a recession we do well,” he smiles. “There’s a big drive towards workforce performance management in supply chain and retail. It’s the next big thing.”

Shoprite Holdings learned this firsthand when they turned to RedPrairie’s Retail Productivity solutions to improve business management. The system helped increase product freshness, reduce waste, improve customer service (through improved product availability) and increase sales in defined areas of the business. With over a thousand outlets covering groceries, convenience, furniture and fast food across Africa, the Indian Ocean Islands and southern Asia, this was no easy feat.

Shoprite had determined that there was room for improvement in its food service operations, particularly bakeries and delicatessens, which had no access to forecasting or inventory man-agement tools. Ordering was based on estimates, and demand forecasting was a manual process. This not only resulted in wastage and availability issues, but also impacted product freshness. Over and above this, the company wanted to imple-ment processes such as web-based business-to-business eInvoicing.

System upgradeThe process was complicated by the old system, which included an inventory system that had been in place for over 20 years. The company wanted to move to a recognised industry standard platform with better support, however it required a solution that would be capable of handling multiple languages, taxation levels and rules while managing a huge range of products and high volumes of data going through the system every day. Shoprite has 8 000 users, 1.5 million order lines per day, with around 35 000 invoices raised daily. They also export 23 millions rows of data that go to the replenishment systems and order forecasting daily.

We used to have four people assigned to the receiving area, we actually only needed two

Optimising warehouse effi ciency

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At Shoprite, The RedPrairie solution has helped standardise the range of products, improved data accuracy, and also helped ensure the freshness of in-store produced products

RedPrairie’s Site Operations suite was selected to manage inventory, along with their Workforce Management solution to be implemented in stores. After initial pilot studies, these were rolled out across the board – a process that was handled speedily due to the ease of use of the system which requires minimal training.

According to company representatives, Shoprite has seen a significant improvement in the level of product wastage and margins. The RedPrai-rie solution has helped standardise the range of products, improved data accuracy, and also helped ensure the freshness of in-store produced products. Stock availability has also improved, as well as stock turn, and the business is benefiting from increased visibility into physical shrinkage.

While Antony is excited about the constant im-provements in the solutions the company offers, key to RedPrairie’s success is the strength of its communication with clients. While the company may offer fast-paced, high-tech products, at the end of the day its simple good business skills which keep you ahead of the pack.

Antony Makins, RedPrairie, Tel: 0861 339-251, Fax: 0865 174-284, Email: [email protected], www.redprairie.com

WMS & INVENTORY CONTROL

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WMS & INVENTORY CONTROL

A ccording to Simon, managing director of Supply Chain Navigators, it is im-perative that any supply chain supplier must provide great solutions, backed by

a wealth of experience.

“Potential clients have shown tremendous inter-est in our change management offering,” Simon tells “Supply Chain Today”. All too often even the best possible software will not be implemented correctly throughout all levels of the business, unless there is buy-in across the board. We spend a lot of time and resources understanding what’s important to the client to make sure any implementation of our software works for all our customers."

The company focuses on the successful manage-ment and delivery of small, medium and large projects and programmes and had huge success with the Soccer World Cup (SWC) in 2010, as well as the Arab Games in Doha, Qatar. The SWC

Change Management

Most companies know that the only constant in a warehouse is change, which makes buying software that is designed to embrace change a far more attractive option than custom-built software which is often clumsy, rigid and resistant to change. “ Supply Chain Today” speaks to Simon Dahlem of Supply Chain Navigators about the key drivers needed to successfully implement a new supply chain management system.

saw 550 companies from across the globe register on the system; facilitating the movement of 2.8 million items in and out of the ten venues and the International Broadcasting Centre as well as more than 56 000 automated emails.

The Arab Games saw 114 unique companies in the system; the movement of 2.4 million items in and out of 37 venues and 13 800 email noti-fications from the software. In addition to such large once-off projects, the company has had success with all of its software offerings in the supply chain ecosystem.

Resistance to change"While these were once-off large events, the logistics behind them was vast. When we implement for a company of any size, we believe that the delivery of the project should be based on solid project management techniques and a technically-sound environment. It is change management that allows businesses to extract the real benefits of any new technology-based solutions," explains Simon.

Supply Chain Navigators' change management

Often workers will have an idea or spot a challenge

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methodology includes five key areas within a business that are critical to successful change: active and visible senior management; frequent and open communication; a structured approach to change management; dedicated resources and funding; as well as employee engagement and participation.

The change process essentially involves stop-ping the current process, making the necessary changes and then running the new process. It is often easier said than done. Stopping a current process in some businesses can be fatal for the organisation. This means change often has to be implemented in steps which have a minimal effect on the process.

Broad set of skillsManaging change in an organisation requires a broad set of skills like political, analytical, people, system, and business skills. Operations and systems in the organisation may also have to be reconfigured so that clients achieve the desired financial impact.

"Change is difficult for most people, so we look at ways to reduce the risk of project failure. We have to go beyond technical excellence and take the human factor into account. Our change management solution starts before implementa-tion right through to the end. We listen to the people in the business too," says Simon. "Often workers will have an idea or spot a challenge - it is only through shared communication that we become aware of these potential problems and find solutions."

Shared risk and rewardBy using a formalised change management ap-proach, the company travels the potentially tricky road ahead with its clients with greater ease. In fact, the company is so sure of its offering that it is prepared to implement new systems based

Simon Dahlem, managing director Supply Chain Navigators

on a shared risk and reward model.

"The shared risk and reward approach definitely finds a lot of traction. We have enough confidence in our products and larger solutions to happily go that route," says Simon. "Tighter budgets and increased expectations mean that more compa-nies are going to be looking for this as a way to ensure that the solution is properly and wholly implemented – which is entirely reasonable."

Head-onIdentifying challenges and needs is key to suc-cessful change in a company, but the technical solution also has to be completely right for a business. Supply Chain Navigators offers two solutions that are world-class and ready for adjusting to suit client requirements.

"It’s no longer enough for voice solutions to im-prove worker productivity and accuracy in the warehouse. The real measure of a voice solution is the flexibility and control it provides in meet-ing warehouse changes head-on," states Simon. "Our solution, Voxware 3, is the only packaged software solution on the market that combines voice applications, toolset and adaptive framework to deliver the highest degree of both flexibility and control."

WMSWith change and flexibility being critical to a business environment, warehouses are no dif-ferent, Supply Chain Navigators also offers a warehouse management system called Isastore.

"With Isastore, we have 20 years of development work culminating in a warehouse management software solution that is easily implemented and embraced. It is not specific to any type of warehouse, language or industry and gives very short implementation times as a result. The wide range of functions and services provided by the Isastore standard generally covers all aspects of logistics and warehousing," explains Simon.

He adds, “While we are completely prepared from a technical and professional perspective, there are some things we cannot always foresee. In the Arab Games, for example, we discovered that the word for Logistics, or in the wider sense ‘goods deliveries’ in Arabic can be confused with that for delivering a baby. This made for some interesting signage and possible misunderstandings.”

Future growthOn the subject of plans for the future, Simon sees much of their growth taking place outside South Africa, as well as in sporting, or music – anything to do with entertainment. Who said that logistics was not a whole lot of fun?

Simon Dahlem, Tel: 011 455 6543, Email: [email protected], www.navigators.co.za

WMS & INVENTORY CONTROL

The shared risk and reward approach definitely finds a lot of traction

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A leading international manufac-turer in the toy industry approached Klako to assist in streamlining their China operations. The company had established a sales office in Hong Kong, as well as a factory in Guangdong Province. The goal was to identify cost saving measures.

Together with Klako's assistance, the operational office in Hong Kong was closed down, and employees either relocated to the factory in China or contracts were terminated. Sales operations were centralised in the factory, and Klako then took over the registered office and op-erations of the Hong Kong entity.

This enabled the customer to save cost by reducing the fixed cost of rent and maintenance of the office in Hong Kong. Klako's experienced trade and logistics department took over the daily handling of all invoicing and shipping documents. The company’s professional ac-counting department is now not only handling the accounting of the Hong Kong company, but also consolidates the monthly report-ing to the head office for both the China factory and the Hong Kong "sales office".

This structure not only saved the customer operational cost, but in addition, Klako was able to put tax efficient structures in place.

Sven Koehler, Tel: +852 2345 7555, Fax: +852 2357 5452, Email: [email protected]

Optimising China Structures

Klaus Koehler Tectra Automation, an automation so-lutions company and a member of the Hytec Group, has joined forces with the Mechatronics, Automation and Design Research Group (MADRG) of Stellenbosch University's Department of Mechanical and Mechatronic Engi-neering, in conducting research into reconfigurable assembly systems (RAS).

“The distinguishing feature of RAS is that the systems are aimed at producing a wide variety of products, in contrast to the more conventional approach where an assembly system is designed to produce large volumes of nearly identical products,” explains Professor Basson.

A key subsystem of the laboratory RAS is the Bosch Rexroth TS2-Plus pallet-based conveyor system, provided by Tectra Automation. This conveyor system's ability to direct the move-

Masters’ students Chibaye Mulubika, Anro le Roux and Professor Anton Basson (from left) showcase the TS2-Plus conveyor system. They are working on a laboratory-scale assembly system for their respective theses

Abundance of Unitsment of pallets along various paths, as directed by product changes, is essential for the system's reconfigu-rable assembly ability. Its modularity also facilitates future changes to the layout to accommodate new stations or changed production requirements.

Apart from conveying different types of media, including polyamide belts, toothed belts, flat top chains and ac-cumulation roller chains, the TS2-Plus provides an abundance of specific units including curves, transverse conveyors, position and drive units. In addition, the time and effort spent on planning and designing can also be reduced to a minimum thanks to the predefined macro modules.

Kevin Lombard, Tectra Automation (Pty) Ltd, Tel: (011) 971-9400E-mail: [email protected]

Remote ConnectivityMaxwell Technology has launched a new product, Satellite Hot Spot, which has the potential to transform the business model for providing con-nectivity to underserved communities in townships and rural areas.

World Bank research has shown a direct correlation between broadband penetration and gross domestic product (GDP): every 10% increase in broad-band penetration increases economic growth by 1.38%. Broadband rollout

is thus perceived as a vital driver of desperately-needed job creation in South Africa, which is why it is a flagship project of the Department of Communications.

“However, finding the right business model for low-income areas where com-puters are in short supply has proved to be difficult,” says Kallie Carlsen, technical director at Maxwell Technol-ogy. “The problem has always been the high costs of putting in terrestrial

MARKET FORUMMARKET FORUM

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~~~MARKET FORUMMARKET FORUM

infrastructure as against the lower rate of return. Satellite has always seemed to be the best technical alternative but, again, the business model hasn’t been right—until now. When we came across this product we were blown away because it has the potential to turn this sector on its head.”

The Satellite Hot Spot product is of-fered by Sat-Space Africa. It uses the Amos 5 satellite to provide connectivity to even the most remote areas—with only onsite satellite dishes and routers required. The product is aimed at rural entrepreneurs wanting to set up Inter-net cafes, lodges and hotels situated

Kallie Carlsen

in remote areas and even wireless operators looking for a stable alter-native or addition to their terrestrial infrastructure.

The key, says Kal-lie is the Satellite Hot Spot’s innova-tive billing model. The traditional

per-month billing model means that the client is charged for bandwidth even if it is not sold on to end customers.

By contrast, the Satellite Hot Sport

uses a router to connect to the Sat-Space billing system, allowing the entrepreneur to purchase vouchers per end user—in this way, connectiv-ity is only charged for once it is used, effectively creating a prepaid model.

“This billing model is a huge innova-tion in the satellite business, and we are first to market in Africa,” Kallie concludes.

Maxwell Technology, Tel: (012) 940-0660, www.maxwell.co.za

In a recent study conducted by the World Bank on international logistics competitiveness, South Africa was ranked 24th out of 150 countries, the best-ranked developing country, even beating China (placed 30th). In spite of lower rankings (124th) on domestic logistics costs, South Africa is rapidly moving up the rankings as a key node in the international freight network.

Last year international logistics leader, Dachser Logistics, further expanded its intercontinental network through acquiring local operator, Jonen Freight, which boasts 30 years of experience in the local market. Now, with offices in Johannesburg, Durban and Cape Town

No Additional Checkslocally and a comprehensive interna-tional network, Dachser South Africa can bring both local expertise and global coverage to address logistics needs. As well as air and sea freight services, the logistics provider offers its customers a wide range of supplementary services such as customs clearance, warehous-ing and distribution. A PE branch is to open soon.

“Since the acquisition, our Dachser South Africa office has been imple-menting international best practice,” says Deltev Duve, managing director of Dachser South Africa.

Detlev adds that key factors differenti-ating local logistics providers include: the efficiency of the customs clearance process, competitive pricing, the ability to track and trace consignments, and the frequency with which shipments reach the consignee within the sched-uled or expected time.

“Infrastructure quality can be problem-atic in South Africa, but we have the most viable solutions in place to coun-teract these challenges,” says Detlev. “When it comes to clearing customs and efficient air transport, Dachser SA has the advantage of being registered with AVSEC a civil aviation authority – which means we can transfer our goods directly to the airlines without additional security checks.”

Tel: (011) 396-1113Email: [email protected], www.dachser.com

Deltev Duve

CIPS is proud to announce the registrat ion of three learnerships in July. Developed in partnership with SAAFF and the TETA, all three learnerships are based on the Higher Certif icate: Supply Chain Management (SAQA ID 74149) which relates to the CIPS Level 3 qualification.

For CIPS, learnerships are an ideal way of attracting young people to the Supply Chain profession while growing the South African pool of qualified SCM professionals, and work is now in progress to get providers to start offering these learnerships to young people. Combining theory (training offered by an accredited provider of education and training) with relevant on-the-job practical training, learnerships provide these young people an opportunity to study towards the CIPS qualifications while they build up work experience and earn a stipend.

At the end of the learnership, they are ‘job-able’, having theoretical knowledge as well as some practical experience.

www.cips.org

SCM Learnership Registered

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On the Move

Apex Strip Curtains 27

APC Outside Front Cover

Acrow 10

Airlink Cargo 38

Goscor 14, Outside Back Cover

Index to Advertisers

Knapp 30

Krost Shelving 19

Linde 8

Mercedes Fuso 28

Mercedes Truck Store Inside Back Cover

In keeping with the human capital strategy and the demands of the Transnet’s Market Demand Strat-egy (MDS), TNPA has appointed Tshisikhawe Victor Munyama as Principal Economist, reporting in to the General Manager Strategy.

Tshisikhawe will operationalise, lead and manage the TNPA Eco-nomic Unit to ensure economic modelling, trends analysis, impact assessments, forecasting and reporting.

Scania Indide Front Cover

SSI Schaefer 33

TFD Network Africa 22

Universal 12

Wits Plus 26

Zetes 13

MARKET FORUMMARKET FORUM

Tshisikhawe Victor MunyamaImperial Logistics has strengthened its investment in Botswana, increasing its shareholding in mining and general cross border activities through subsidiary Transport Holdings.

Transport Holdings managing director, Anthony Lee says that the majority shareholding by Imperial Logistics opens up significant opportunities for customers. “There are phenomenal advantages to be gained through economies of scale within a group that operates extensively across the continent (14 African countries) and Europe,” he explains.

Investment in Botswana

“While being a subsidiary of Imperial, we remain a Botswana-empowered business, having retained our owner-manager focus. This combination gives our customers great comfort,” he says adding that the company is now in a position to grow its scale of delivery while maintaining entrepreneurial in-novation and flexibility.

Imperial Logistics, Marelize Hoffmann, Tel: (011) 821-5500, Email: [email protected], www.imperiallogistics.co.za

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TRUCKING


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