+ All Categories
Transcript
Page 1: Supply Chain Mar12

Supply Chain Today March 2012 1

Page 2: Supply Chain Mar12

2 Supply Chain Today March 2012

Taking dedication to another level

Look no further for a world class express service.tnt.com

At TNT we don’t see a box, a package, a parcel or a pallet.We see a bigger picture. The completion of a jigsaw. That vital ingredient.We see a professional’s reputation.Your commitment. Your next order.That’s why at TNT we don’t just deliver parcels, we deliver promises.Passionate about your parcels. Passionate about your promises.

Page 3: Supply Chain Mar12

Supply Chain Today March 2012 3

March 2012

Contents

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

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

Printed by:Typo Colour PrintingTel: (011) 402-3468

The monthly circulation is 4 025

CopyrightAll rights reserved. No editorial matter published in Supply Chain Today may be reproduced in any form or language without written permission of the publishers. While every effort is made to ensure accurate reproduc-tion, the editor, authors, publishers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publica-tion, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Cover Story4 Leading the Way with Green CNG

Racking & Shelving7 Racking up the Notches10 Steady Growth for New Kid on the Shelf

Lighting13 Switching to Efficient, Safe Lighting

Security16 Burning Misconceptions

Market Forum — Unit 18 Market Forum - Unit

Trucking21 Following the Star

Packaging24 Safe Passage for Dangerous Goods27 Debunking Plastics Packaging

Express Freight31 Consolidation for Couriers34 Global Courier Service Key for Online Retail Industry

Market Forum — Supply36 Market Forum - Supply

Endorsing BodiesAfritag (div of Smart Card Society

CGCSA (Consumer Goods Council of SA)

CILTSA (Chartered Institute of Logistics & Transport: SA)SAEPA (SA Express Parcel Association) SAPICS (The Association for Operations Management of Southern Africa also mailed to:

CSCMP (Council of Supply Chain Management Professionals)

Featured on the cover:

Goscor Lift Truck Company 0861 GOSCOR (467 267)

Fax: (011) 976.2176 [email protected]

www.goscor.co.za

Page 4: Supply Chain Mar12

4 Supply Chain Today March 2012

G LTC national sales manager Patrick Bar-ber says that his company has started with a few specially converted forklifts at selected sites and will monitor the

situation. “Continuous innovation with regard to environment-friendly products is crucial to future business and CNG is one of those solutions that is showing enormous promise. We are carefully monitoring our CNG trials and will have no hesi-tation in undertaking a significant rollout if the results are as we expect,” says Patrick.

Pro-CNGHe adds that there are several advantages to CNG and its ‘green’ effects are more far-reaching than energy saving alone. “In many important ways these effects permeate through the structure of the entire organisation.”

Some of these advantages include a renewable

and clean energy source; leaner burning and reduced emissions (less CO, NOx, HC, and PM); extended engine life; job creation via conversion workshops and CNG filling stations; consistent quality/energy content; carbon credits; theft elimination with reference to diesel, petrol, LPG, etc; reduced health / safety risk; reduced risk of accumulation in confined spaces; and dual fuels (petrol and CNG) can be utilised.

Patrick says that one of the crucial advantages is cost. “The bottom line is that with CNG the fuel bill is at least 30% less and pricing is stable, as it is subject to far fewer petroleum-linked price fluctuations.”

CNG is seen by many as an important alternative source of fuel in South Africa, not only from an environmental perspective, but also as a buffer against the rising shortages and rising prices of liquid fuels.

So important is the need to source such alternatives the South African National Energy Research Insti-

Leading the way with green CNG

Goscor Lift Truck Company (GLTC), part

of the Imperial group is South Africa’s fastest

growing materials handling equipment business. One of the reasons for this is its unusual capacity for

innovation and leadership in its industry. So it comes as no surprise that it is once again taking a leadership

role, this time in an important energy efficient

product for forklifts - compressed natural gas

(CNG).

Continuous innovation with regard to environment-friendly products is crucial to future business

COVER STORY

Philip Hoare, National Service Manager, Goscor Lift Truck Company, showing the quick coupler for CNG refuelling on the specially converted Doosan forklift

Page 5: Supply Chain Mar12

Supply Chain Today March 2012 5

COVER STORY

tute (SANERI) is supporting sev-eral initiatives in this country including CNG. “Alternative fuels have to be used before a real cri-sis develops in South Africa,” says SANERI green transport programme man-ager Dr Titus Mathe.

Spreading outMeanwhile the rollout of CNG distribution con-tinues unabated. The ‘mother’ sta-tion in Langlaag-te, Johannesburg has a capacity of 1,5-million giga-joules. A second mother station will be established with an alternative source of methane to supply Gauteng, followed by further mother and filling station distribution networks in Gauteng, Mpumalanga and KwaZulu-Natal. This will be spread to the Cape regions and then the company will expand infrastructure.

A spokesman for the CNG group says that the use of CNG results in a 75% reduction of particulate matter and confirms that it will offer cost reduc-tions of between 20% and 30%, depending on the fuel source substitute.

More prolificPatrick says that it is promising that CNG vehicles are becoming more prolific worldwide with almost 3 000 cities having CNG filling stations. “Of course the technology is relatively new in this country and there is still quite a lot that must happen before it can compete with mainstream energy sources,” he says.

Green approachBut he adds that GLTC is optimistic that CNG will become a viable alternative in the not too distant future and that his company will be ready for it when that happens. “I can only reiterate that a ‘green’ approach to business is no longer a ‘nice to have’ but an absolute necessity. The need to protect our planet, and the central means of how to do that, are now incontrovertible and any responsible company, and especially those who have fuel-using products, would do everything in its power to comply.

“We have, up to now, had positive feedback from

That with CNG the fuel bill is at least 30% less and pricing is stable

our CNG test sites with our Doosan forklifts and we are in the process of learning. We are not in the habit of making important changes to our product offering until we are absolutely sure that we can do a professional job. As far as CNG is concerned there is still a lot for us to learn in terms of performance, mechanics, distribution and support and until such time as we are 100% certain of being able to give our customers the service they deserve, we will remain in ‘learning’ mode,” concludes Patrick.

Exceptional growthGLTC’s three leading brands are world-renowned Doosan, with which the CNG trials are taking place, Crown and narrow-aisle specialist forklifts Bendi.

Crown is the world leader in electric materials handling equipment, while Doosan forklifts are famous for, inter alia, their totally enclosed brak-ing system on which Goscor offers a 60-month, unlimited hours guarantee. Bendi is a revolution-ary counterbalanced, articulating forklift, which can work in very narrow spaces – even in widths of just 1.8m.

Goscor Lift Truck Company has built a reputation for outstanding service to its customers resulting in exceptional growth every year of its existence.

Darryl Shafto, Goscor Lift Truck Company, Tel: 0861 GOSCOR (467 267), Fax: (011) 976.2176, Email: [email protected], Website: www.goscor.co.za

Gas regulators

Page 6: Supply Chain Mar12

6 Supply Chain Today March 2012

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

africa,release thepotential

34th Annual Conference & Exhibition

T: +27 (0)11 023 6701 or [email protected]

In Association with:

The SAPICS Annual Conference is the Leading Event in Africa for Supply Chain & Operations Management Professionals.

2012 Sponsors:

3 - 5 JUNE

SUN CITY

34TH A

NN

UA

L CONFERENCE & E

XH

IBIT

IO

N

2012

Page 7: Supply Chain Mar12

Supply Chain Today March 2012 7

A t their office in the quiet Randparkridge suburb, ‘Supply Chain Today’ chats to the knowledgeable Daniel Peters, owner of Storelab. Earning his stripes at

Palian and then at a private agency, he ventured out on his own in 2010, establishing Storelab. The company is an approved agent for Racklock, manufactured by Palian and, despite a few initial bumps, is growing steadily.

Project focus“At the moment we are busy with 11 projects in Johannesburg, ranging from installing mezzanine floor levels, to static racking systems and bolted shelving solutions” says Daniel. Storelab’s static pallet racking caters for various loadings from 800 kg to 4 500 kg per level and is available with two locking systems, namely the key hole slot and the coffin slot.

“We just concluded a large project in Pretoria for static racking in multiple warehouses ranging from 100 m2 to 200 m2 in size. The client manufac-tures transformers, so generally their products are very heavy: up to 6 tons per 2.1m length beam level. It’s one of the heaviest products that I’ve made racking for; the beams were specifically designed by Palian’s engineer,” relates Daniel.

The company also undertakes cross-border projects. “We’ve completed a project in Accra, in Ghana, for static racking in three separate warehouses, for an American insect repellent producer,” he says. They have also completed projects in Namibia, Botswana and Mozambique.

Full serviceStorelab visits the site to measure the client’s project area, and suggests the best possible solution to cater for the client’s need. After receiving orders from clients, Palian delivers all the materials to the clients’ sites from which Storelab manages the installation of the mate-

RACKING & SHELVING

Racking up the Notches

Racklock patented racking systems - increased strength - reduced cost

Considering the somewhat cautious mood in industry at the moment, it’s refreshing to chat to an up-and-

coming racking, shelving and mezzanine flooring company, with an optimistic view of the times.

We’ve completed a project in Accra, in Ghana, for static racking in three separate warehouses

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

africa,release thepotential

34th Annual Conference & Exhibition

T: +27 (0)11 023 6701 or [email protected]

In Association with:

The SAPICS Annual Conference is the Leading Event in Africa for Supply Chain & Operations Management Professionals.

2012 Sponsors:

3 - 5 JUNE

SUN CITY

34TH A

NN

UA

L CONFERENCE & E

XH

IBIT

IO

N

2012

Page 8: Supply Chain Mar12

8 Supply Chain Today March 2012

������� ������������������������������������������������

���������������� ������

������ ����������������������

�������������������

���������

������� ���������������������

�������������������

������������������������

��������������� �

������������������������������������

 ��­�����������������������

����� �����������  ������� ������������ �­

������������������������ �

����������������������������

����������������������

��������������������������

�������������������������������

��������������������������

Page 9: Supply Chain Mar12

Supply Chain Today March 2012 9

rial. “If need be, we have access to a Palian’s engineer to certify installations,” adds Daniel. They also offer a variety of furnishing products such as fencing, dry-walling and lighting, as well as ongoing support and maintenance contracts if required.

Palian manufactures all products locally, at its Kya Sands facility, from raw coil steel and has its own epoxy-powder coating paint line onsite. Products are also tested, certified and designed to meet SEMA and Ciltsa codes of conduct for Storelab’s racking, shelving and mezzanine floor-ing design installations.

LightweightPalian will be releasing a new mini lightweight racking system this year. “At the moment our lightweight racking system can only stand up to a height of 2.4m, but the new system will expand to about 6m - fulfilling more customers’ needs,” elaborates Daniel. The system makes use of the Racklock type, forged locking systems and is ideal when stacking goods in excess of a few hundred kilograms.

“The light-duty systems are restricted to about 4 tons per frame and there are various loadings per beam level which are catered for, depending on what the client is storing. We accommodate the maximum weight that they would be storing

RACKING & SHELVING

Palian will be releasing a new mini lightweight racking system this year

on each level,” he explains.

He notes that there are a few cases with special considerations. “Specific industries prohibit certain materials from being used to store their goods, due to health and safety regulations. For example, in some of the medical and food industries, timber is prohibited. Therefore we supply steel or mesh decks to these industries.”

Upbeat angleWhen asked about current trends in the industry, Daniel’s answer is surprising. “Seeing as it’s not a consumable, I’m astounded by the amount of racking sold in industry –some industries are expanding, even in our recession.

“Within the materials handling industry, during a recession clients utilise as much space as possible using our products; in favourable times they expand and also call on us – so either way it’s benefited the materials handling industry. I’m looking forward to a good year – hoping to improve on 2011,” he reveals confidently. Storelab may also be expanding into additional countries in due course. Storelab, Daniel Peters Tel: (011) 022-8215 [email protected] www.storelab.co.za

������� ������������������������������������������������

���������������� ������

������ ����������������������

�������������������

���������

������� ���������������������

�������������������

������������������������

��������������� �

������������������������������������

 ��­�����������������������

����� �����������  ������� ������������ �­

������������������������ �

����������������������������

����������������������

��������������������������

�������������������������������

��������������������������

Page 10: Supply Chain Mar12

10 Supply Chain Today March 2012

S pode Storage started just before the reces-sion hit, and yet has managed growth of at least 40% year-on-year, every year since. Intrigued, ‘Supply Chain Today’ chats to

Shaun Keppler and Michael Walker from this dynamic team.

Humbly starting from home, the company has since established a head office in Durban and a branch in Pietermaritzburg, initially concentrat-ing on the Kwazulu-Natal market. Spode recently opened the doors of its Johannesburg office, in Germiston and now services the whole country and cross-border.

Spode is looking for continual growth and expan-sion opportunities and is looking to open more branches across the country. The first this year will be in Port Elizabeth, followed by offices in Cape Town, Bloemfontein and possibly Nelspruit.

RACKING & SHELVING

The company also continues to invest in growing their existing branches.

It supplies racking and shelving solutions, as well as mezzanine floors and material handling products, to retail and industrial clients, assist-ing with design, planning, installation, technical support and maintenance. Spode reports that it is also the first company in the country to offer the latest 3D design programme.

Spode recently supplied a mine in Eritrea, in the Horn of Africa – an interesting case study

“You’ve seen one racking and shelving company, you’ve seen them all.” Not so.

Page 11: Supply Chain Mar12

Supply Chain Today March 2012 11

RACKING & SHELVING

African exploration“We have exported to a number of African countries, are currently speaking to companies in Angola and Mozambique and have received enquiries from countries such as Ghana. Gener-ally these enquiries are fairly substantial in size and are for large, mining, retail, warehousing and logistics companies. Africa is developing substantially and we’d like to concentrate on growing the African market.”

Shaun explains that Spode recently supplied a mine in Eritrea, in the Horn of Africa – an interest-ing case study. “We supplied a diverse selection of products from multi-level bolted shelving, a large quantity of light and heavy duty racking as well as mezzanine floors, all of which was over 150 tons of steel.

“It was quite logistically challenging to get the products delivered and installed and the shipping costs were astronomical. To complicate matters, there are pirates along that shipping route so very few shipping lines will undertake the job. However we managed to provide the customer with a high level of service and delivered all goods on schedule,” he reveals.

The company is also currently undertaking a project for a mine in Zimbabwe. “We supplied them with a variety of products at the end of last year, and a follow-up order for a large quantity of racking will be supplied and installed later this month,” explains Michael.

On the home frontLocally, the team deals with a number of cash and carry chains and is working on tight deadlines for projects in King William’s Town and Rustenburg. “A number of the groups we currently deal with have recently had large investment, so we are really excited to see the changes, developments and roll-out of stores that will result from this,” says Shaun.

“A lot of our products are locally manufactured, apart from a number of new products that aren’t yet being produced locally which we are import-ing,” he says.

The company also offers maintenance contracts. “We send out trained staff to customer warehouses, inspecting racks and frames for damages and submit a report compiling our findings. Should any damages be found, we immediately send out our installation team to rectify the problem to ensure a safe working environment for our customers,” adds Shaun.

Trend-spottingGenerally, new racking and shelving trends are few and far between in South Africa, however racking products are continually being developed. Shaun says there is a large demand for light duty racking. Their light duty rack system consists of light duty frames and beams for industrial stor-

age applications and is a cost-effective solution.

Also, as many industry players have noted, ware-housing facilities are expanding by height and are being built higher rather than wider. “As in Europe, space is at a premium, so it’s cheaper to expand upward and not outward. Property prices are also increasing. For example, in the newly-developed areas across the country, warehouse space is rented at R65/m2 so space needs to be utilised effectively,” explains Shaun.

“In fact, in the last three to four months we’ve installed more than 15 mezzanine floors in ex-isting warehouses – it seems to be a big trend.”

Manufactured from high quality steel, mezzanine floors are free standing, long span structural steel and rack support systems. The company believes it leads the market in mezzanine floors, particularly in the Durban region. In the River-horse area it has more than 10 potential flagship mezzanine sites.

Looking to the futureMichael says a number of bigger corporations are opting for automated racking. “Although it’s an expensive option, it’s the way to go in terms of saving space and time.” This is generally a European trend and he explains that as South Africa becomes more sophisticated, local com-panies are adopting automated systems.

Shaun adds, “We’ve received a number of enquiries, but there are currently no local companies able

Mezzanine floors – it seems to be a big trend

In fact, in the last three to four months we’ve installed more than 15 mezzanine floors in existing warehouses – it seems to be a big trend

Page 12: Supply Chain Mar12

12 Supply Chain Today March 2012

to supply a fully automated system. However we can assist customers with our overseas partners.”

Their outlook is positive. “Our existing customers in retail, warehousing and logistics are growing and continue to use us as suppliers, as we ensure high levels of service,” states Shaun confidently.

RACKING & SHELVING

A number of bigger corporations are opting for automated racking

Spode also supplies conveyor systems, storage bins, material handling equipment as well as safety and rack protectors, offering a holistic storage solution.Spode Storage, Shaun Keppler, Tel: 086 100 4226 [email protected], www.spodestorage.co.za

Page 13: Supply Chain Mar12

Supply Chain Today March 2012 13

LIGHTING

D oom and gloom would probably be the best de-scription you could apply to some warehouses, with

poor, inadequate lighting and a lack of reflective surfaces with dark floors and walls,” says AC/DC Dynamics operational manager Roger Burrows. AC/DC Dynamics manufactures, im-ports and distributes products in the electrical, electronics, pumps and tools industries, predominantly from Europe and the Far East.

“The amount of light required in a space is con-nected to the reflective surface: dark floors require more light, while light must be reduced with light-coloured floors. Most stores are in shades of grey, but some are bordering on black, with old cement that never gets cleaned or polished. However, floors can be rehabilitated to achieve more light,” explains Roger.

Switching to Efficient, Safe Lighting

Lighting is an integral part of any security solution, and changing to energy efficient

options can lead to major cost reductions. However some

companies are still in the dark about these concerns.

The amount of light required in a space is connected to the reflective surface

The process“Storage, or warehouse design, needs to take lighting into consideration,” he says. Lighting engineers first consider the application, then decide on a light source and choose fittings. Photometrics is the next consideration. Height and storage systems must be taken into account in warehouses as lights have to clear cranes, reach trucks and shelves. Once engineers have a given height, they can then calculate how many lights are needed to reach the floor.

Location/geography is also important. “In winter, Johannesburg has the most appalling light as there is no moisture in the air to reflect light. So during those blue, clear days at this altitude, there is the strongest amount of contrast. Too few lights also leads to too much contrast and if lighting is only overhead, workers and objects will cast shadows, so cross lighting needs to be installed at all levels,” says Roger.

Security concernsFor health and safety, as well as crime mitigation reasons, various factors with regard to lighting need to be considered. For example, white lighting, as

In winter, there is no moisture in the air to reflect light in Johannesburg. So during blue, clear days there is the strongest amount of contrast

Roger Burrows

Page 14: Supply Chain Mar12

14 Supply Chain Today March 2012

opposed to old-fashioned orange-yellow lighting, helps to identify the colour of an intruder ’s ap-parel or the colour of products in security footage.

Further, the Occupational Health and Safety Act, as detailed in SANS 10114-1:2005 Edition 3, requires at least 150 lux for racking, packing and dispatch areas and 200 lux at issue counters. While natural light must be used wherever pos-sible, these specifications are a minimum and have to be maintained during bad weather and at night. Roger says a lot of warehouses do not meet this requirement.

The AC/DC office in Johannesburg

LIGHTING

A poor power factor can result in wastage up to 40% per month

Guide to reducing energy costsPulling out an energy management manual he explains the steps to be taken to tackle energy management in a warehouse, and unsurprisingly, lighting is high on the list.

“Firstly, find out if electricity is billed in kVA or kilowatts. If KVA, then check the power factor correction,” he says. Power factor is the ratio between the active load power (KW) and the ap-parent load power (KVA) drawn by an electrical installation, and a measure of how effectively the current drawn by the load is being converted into useful work output.

“A poor power factor due to inductive loads such as air conditioning and other motor-driven loads can result in wastage up to 40% per month. This can be improved by the addition of an automatic power factor correction system which will imme-diately reduce losses to below 5%. Few people believe that they have a problem until a survey is undertaken and then the reduction on monthly electricity costs can be huge,” explains Roger.

Huge savings“Poor power factor management impacts upon Eskom and municipalities and if insufficient users take cognisance of this, Eskom and the municipalities will have to consider further ways of recovering unnecessary losses including the expense of larger generators, transformers, cables, switches etc, to the consumer.

“The power factor correction can be tested by putting on a recorder, leaving it for 24 hours on a working cycle and on a normal working day, then having the data downloaded and analysed through a company such as ours. We then advise on any faults and how to correct them,” says Roger.

Incandescent lighting and halogens fittings can be con-verted to CFL or LED

Page 15: Supply Chain Mar12

Supply Chain Today March 2012 15

Efficient lighting Lighting is second on the list. “Firstly, we look at the efficient use of lighting and advise that companies get rid of incandescent lighting and halogens. Fittings can be converted to CFL or LED – for which AC/DC supplies conversion kits, LED fittings and CFL lamps made to retrofit.

“On the efficiency scale, LED comes out tops with a potential 80 000 hours (with proper surge protection), followed by inductive lighting with a potential of 40 000 hours and then fluorescent and discharge lighting. New generation fluorescent fittings using T5 high efficiency tubes are a great improvement on the old T8 tubes, as they provide greater light while consuming less power. How-ever, in terms of capital cost, the scale is exactly opposite with fluorescent being the cheapest,” he states. Inductive and LED lighting is also available for floodlights, which could be used for example in the outside apron of warehouses, together with street lights. Solar-powered LED lighting is another option.

“Next up is occupancy and the necessity for hav-ing the lights on when the space is unoccupied. Occupancy sensors can be installed with an adjustable time delay to remain on after the last movement. They are available with either con-

LIGHTING

As we have several of our own warehouses, we know exactly what their extended difficulties are

ventional passive technology or with microwave technology enabling the occupation sensor to be discreetly mounded out of sight above ceiling or behind partitioning.” Insulation, heating and ventilation and the efficiency of motors can then be examined for potential energy savings.

Hands on“As we have several of our own warehouses, we know exactly what their extended difficulties are and almost all the best solutions. We believe the lights we put in our stores are the most efficient for colour, penetration and low maintenance, using a very high efficient fluorescent tube,” Roger reveals.

One of the focused directions for 2012 is going ‘green’ with the company offering an extensive range of power saving products including LED lighting as well as alternative and hybrid power supply systems with on and off-grid solutions, combining solar PV and wind generators with mains electricity and conventional diesel and petrol back-up generators.AC/DC Dynamics Roger Burrows Tel: 087 806 6650 or 010 202 3300 www.acdc.co.za

Page 16: Supply Chain Mar12

16 Supply Chain Today March 2012

and staff fill the warehouse, the risk increases and the picture changes completely, especially if

additional fire systems are not installed.

The aged threatCameron says that build-ing codes specify that any factory or warehouse over 2 500 m2 has to have fire detection or suppression systems installed. But ‘Sup-ply Chain Today’ was shocked to find out that this does not apply to buildings built before 1981, because of a ‘grandfather clause’ in the industry.

Because of water and electric supply issues, Cameron believes it may be cheaper to knock these buildings down, rather than retrofit fire systems.

He adds, “Old buildings

Burning Misconceptions

P eople don’t take the risks of fire seriously enough, but when it does happen, you need to be prepared for it, otherwise you could end up with liability problems,” cautions

Fireworx Fire sales director, Cameron Kiloh.

Supply chain hazardsCameron says stacking is a huge risk in ware-houses, particularly where goods are stacked to the roof. This not only poses an occupational hazard in normal circumstances, it reduces the effectiveness of fire suppression systems, espe-cially if burning stock starts falling to the ground, further hampering fire fighting efforts.

Mezzanine levels, wooden or otherwise, are constructed to add storage capacity, but often with no thought given to the fire detection or suppression systems of these structures.

In addition, fire fighting equipment is often in-adequate in warehouses. Cameron explains that empty buildings are signed off for compliance with the fire department, however once assets, stock

“It’ll never happen to me” - words often regretted where fire is concerned.

Stacking and inadequate fire fighting equipment are huge risks in warehouses

Cameron Kiloh

Once assets, stock and staff fill the warehouse, the risk increases and the picture changes completely

SECURITY

16 Supply Chain Today March 2012

Page 17: Supply Chain Mar12

Supply Chain Today March 2012 17

are a mess in terms of electric wiring because of all the work done over time by different electricians, not keeping to a unit standard. When there are sparks or shorts on those wires you can’t trace them to isolate the circuit, so you end up with a continuous energy/fire source.”

However, there are ways to minimise the risk, such as installing additional and more acces-sible portable fire equipment and hose reels. Suppression systems can also be fitted in the more dangerous and risky areas, such as server rooms, exchange areas and transformer rooms.

Avoiding liabilityWhen it comes to liability suits after a fire, for instance for injury or death, if the company has not followed fire regulations in the Occupational Health and Safety Act, the Fire Protection Act, SANS regulations and that of their local authority, the case will be tried as a criminal offence, not a civil suit. “You can’t say ‘I didn’t know,’ because ignorance is not a defence,” Cameron asserts.

Fire detection installation must comply with regulations such as SANS 10139 (Fire detection, installation and alarm systems for buildings), or ISO 14520 (Gaseous fire-extinguishing systems - Physical properties and system design). Busi-nesses are also liable for prosecution should they use a non-registered service person to maintain their fire equipment. Legislation requires service people to have a current SAQCC Fire identity card and the servicing company a legal SABS: 1475 permit.

New, sustainable solutionThere are several fire detection and suppres-sion systems available including CO2 suppres-sion systems, FM-200 suppression systems, and new halon-replace-ment fluids, each with their own applications.

The 3M Novec 1230 Fire Protection Fluid (Novec) is the next generation in halon (bromotrifluorometh-ane) replacement, de-signed to alleviate tox-icity and performance concerns.

Unlike first-generation hydrof luorocarbons (HFCs) such as ha-lons, Novec is a viable, sustainable technology for special hazards fire protection, with zero ozone depletion

Many trucks are without fire suppression systems

potential, a five-day atmospheric lifetime com-pared with the 29 years of some other systems, a global warming potential of one and a large margin of safety for occupied spaces.

Critical areasA liquid at room temperature, the product is discharged in gas form and extinguishes via its cooling effect. As it is not packaged under pres-sure, Novec 1230 fluid has unique shipping and handling advantages over high pressure alternatives, such as CO2s and FM-200s. These have to be refilled at SANAS-approved filling centres, whereas Novec can be refilled onsite by Fireworx Fire.

It is ideal for special hazards, or spaces where the continuous operation of high-value equipment is vital, for example, telecommunication switch rooms, computer and electronic control rooms.

Where trucks are concerned, there is a lot of friction on the brakes and tyres on larger trailers, particularly with heavy loads. “Generally, mining and heavy utility vehicles have suppression sys-tems on them, but many other trucks are without fire suppression systems,” he says, adding that these can be easily fitted to a vehicle.

Fireworx Fire, Cameron Kiloh, Tel: 086 077-7337, Email: [email protected], www.fireworxfire.co.za

Old buildings are a mess in terms of electric wiring

SECURITY

Supply Chain Today March 2012 17

Page 18: Supply Chain Mar12

18 Supply Chain Today March 2012

In addition to creating higher pallet capacities on smaller square meterage, the Movirack mobile racking solution from APC Storage Solutions SA, through a series of smart innovations, lowers overall energy requirements, advances warehouse safety, and aids general accessibility to goods.

“This gives cold storage facilities much greater viability,” says APC Storage Solutions SA MD, Fred Albrecht. “We have introduced the Movirack to the South African cold storage industry at

an extremely affordable pallet position price of just under R2 000. The savings associated with much denser pallet storage further ensure a rapid return on investment, and give our clients a competitive edge in their respective industries.”

These savings refer primarily to space that growing warehouses don’t need to acquire by opting for a high-density mobile racking system that increases SKUs on existing floor space. “Some facilities using the Movirack have benefitted from an 80 to 120% increase in pallet positions, greatly improving warehouse performance,” he explains.

MARKET FORUM

Vision technology speeds up shipping verification Zetes has installed Visidot, an image-based identification technology (based on Image ID), in the Schneider Electric logistics centre, in Sant Boi de Llobregat, in Barcelona.

Visidot is essentially a combination of hardware units, capture devices and lighting, managed with innovative software. As a result of faster and more accurate shipping verification, the client has enhanced its customer experience.

Once a pallet is assembled after picking, it is carried along a conveyor belt to a turntable where it is detected by Visidot. The system subsequently captures all the barcodes applied on boxes constituting a pallet. Hundreds of labels are captured simultaneously with a single reading. The decoded data is then pooled to eliminate duplicates and validate its accuracy before the results are passed onto the Schneider ERP system.

Once all checks have been performed on the pallet, it is baled and dispatched. Operators receive real time alerts about problems, along with visual problem-solving guides. Incidents can involve incomplete pallets, a missing code in a box or the detection of boxes that do not correspond to the pallet being dispatched.

Data for each pallet is stored for reporting and statistical purposes. The images captured are kept as visual evidence of the delivery of an order and its conditions.

Zetes CEO Alain Wirtz says, “Visidot offers a lot of benefits for shipping verification and other processes requiring fast, accurate data capture and reading. In some cases, it provides an interesting and cost efficient alternative to RFID. As a result we are now seeing increasing numbers of companies showing an interest in vision based technology around Europe.”

Visidot image-based technology is available from Zetes South Africa (previously ProScan), part of the Zetes group.

Zetes SA, Tel: (011) [email protected]

By maximising room capacity, greater pallet volumes help to retain lower overall warehouse temperatures, reducing the per-pallet energy as well as floor space costs. Clever lighting, which turns itself on and off depending on the aisle selected, also contributes to overall energy savings in a climate of escalating electricity costs.

The Movirack system uses low-heat drive wheels and guide rails to open access aisles for forklifts. This movement is controlled by an operator who selects

where an access aisle should be, using either a wall-mounted panel or a remote control. APC Storage Solutions SA can further automate the picking process with the integration of conveyor systems, providing further time and energy reductions.

APC Storage Solutions SA Fred Albrecht Tel: 0861 61 61 61 www.apcstoragesolutions.co.za [email protected]

Modernised cold storage technology

Page 19: Supply Chain Mar12

Supply Chain Today March 2012 19

MARKET FORUM

Bluetooth connection for labelsGrafo Wiremarkers has launched a label maker and peripheral printer with integrated Bluetooth connection that enables communication with Brady Mobile, a free mobile application that allows field workers to design, edit and print labels from their smartphone.

Sourced from Brady Corporation, the new mobile label makers come in two versions: the BMP51 with a clear screen and a Qwerty keyboard that can be used as a stand-alone or can be connected to a PC. The second ver-sion is the peripheral BMP53 without a keyboard.

Both these products offer a number of new features to help create labels more efficiently. One of the most in-novative is the easy-to-load cartridges, which contain both the label making material and ribbon. The BMP51 and BMP53 also offer a durable built-in cutter, high speed print (25,4 mm per second) and USB PC connectivity for advanced label design using Brady’s LabelMark Software.

The printer has a number of power supply options; depending on the preference, it can run on AA batteries, AC power supply, or a rechargeable lithium-ion battery. Both printers feature a built-in network card with Bluetooth technology and an optional Wi-Fi card for convenient on-the-job printing. All these characteristics make it an easy-to-use printing device for electrical and datacom installations, laboratory identification and facility

and safety labeling.

An Android smartphone can be used by the field worker to design labels from scratch, edit existing labels and create and edit label templates. It contains a wide variety of built-in barcoding, symbols and pictograms.

Grafo Wiremarkers Africa, Darryl Crampton Tel: (011) 704-3295 [email protected]

Sensors in modern logistics centreLeuze electronic sensor systems have been installed in one of Europe’s most modern logistics centres in Weilerswist, near Cologne.

The new dm-drogerie markt logistics centre covers a total area of 50 0000 m2 including the order picking warehouse for pallets and small parts as well as the high–bay warehouse. The specialised Leuze sensors are used to direct the flow of goods over extensively branched pallet and container handling technology; to position high-bay storage devices and telpher lines; to ensure the functions of machines such as robots, stretchers and turners; to transmit data and to provide protection in safety areas.

For the safeguarding of relevant system areas, the integrated muting function of the Leuze Compact plus Multiple Light Beam Safety Devices has adequately satisfied the tough requirements with regard to process efficiency.

About 700 barcode readers are located at each branch of the extensive material flow system allowing reliable and fast product identification. Leuze positioning systems are used for the positioning of the high-bay storage devices and the CaddyPick telpher line vehicles, and offer a high level of functional reliability and redundant data polling as well as minimal maintenance.

The transmission of the position data in the 75-metre long aisles is performed

by DDLS 200 data transmission photo-electric sensors which permit contact and wear-free optical communication without interference at a transmission rate of up to 2 Mbit/s over distances of up to 500 metres.

Leuze sensors are available locally from Countapulse Controls.

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

Leuze Compact plus multiple light beam safety devices provide permanent personnel protection

Page 20: Supply Chain Mar12

20 Supply Chain Today March 2012

Lightweight bread bodies

Serco’s Cape Town branch has manufactured several new lightweight truck bodies for Sasko Bakeries, offering the potential of improved fuel consumption for the company’s vehicles as well as increased carrying-capacity.

The first vehicles were built for Sasko in June 2011 and since then they have taken delivery of several 5m- and 6,5m-models with additional orders placed in January.

With the advent of the lightweight body, the interior of the 5m body has increased in size providing more space and allowing room for an extra 48 crates and thus an additional 480 loaves of bread.

The major difference in design of the bodies is that a single glass fibre skin has been used in the construction as opposed to the standard panel construction which incorporates fibreglass skins with an inner layer of plywood. This has meant a significant weight-saving which is advantageous for this application.

The structure has been reinforced with composite dunnage reinforcing to the sidewalls; roof and across the bulkhead.

Unitrans – NPC Simpor recently took delivery of four Linde 8-ton forklifts.

Linde forklifts were first used at NPC’s Durban Seaview operations in 2002 and through much success and high uptime over the years, Unitrans decided to purchase machines for their NPC operations in Simuma (KZN South Coast) and Newcastle.

“Over the years we’ve enjoyed high uptime and efficiencies and had no overheating problems, no brake hassles, and no transmissions problems due to the unique Hydrostatic Drive System. One of the other main contributors to our winning the tender to replace the existing fleet, is the excellent

Sasko national technical manager Arno Lourens says, “The weight reduction in the new rigids gives us a R350 savings in motor licensing fees on the 5m units. Even with the extra loaves of bread the 5m unit is able to carry, it is still 340kg lighter than its predecessor which was slightly shorter.”

Serco Clinton Holcroft Tel: (031) 508-1000 [email protected], www.serco.co.za

fuel consumption which provided long-term savings,” explains Linde Durban branch manager Chappy Moodley.

“The cost of ownership was calculated over five years and 12000hrs life cycle and the savings on maintenance and tyres quickly proved that the savings would have off-set the initial higher purchase price in year three of a five-year cycle. In retrospect, this initial calculation was conservative as one machine managed 15 000 hours without major interventions in a cement environment,” says Unitrans KZN operations manager Kobus du Preez.

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

MARKET FORUM

From Left: Marlene Moodley (area sales manager Linde), Kobus du Preez (OPS manager KZN Unitrans), Chris Barr (contacts manager Unitrans), Chappy Moodley (DBN branch manger) and Jenny Moodley (service manager Linde)

Forklifts for cement industry

Page 21: Supply Chain Mar12

Supply Chain Today March 2012 21

TRUCKING

S trong sales at Mercedes-Benz South Africa (MBSA) saw the automotive giant end 2011 as the undisputed leader in the South African commercial vehicle market, with an overall

increase of 13.7% to 7 035 units. Its commercial vehicle portfolio includes Mercedes-Benz trucks, vans, and buses; Freightliner; Western Star; and Mitsubishi Fuso.

“We are delighted with the performance of our commercial vehicle portfolio,” said Dr Martin Zimmermann, CEO and President of MBSA at the company’s annual results press conference. “The exceptional volume increase in a strongly growing market indicates that our value-chain focussed strategy was the right way to go to cement our market dominance.”

He explained that the underlying market drivers in the transport industry were consistently strong throughout 2011. “This was especially evident

in the extra-heavy commercial vehicle market segment, where we have seen an increase of nearly 40% over last year ’s figures. We are the biggest seller in this segment and pleased with the performance of all our brands.”

Value-chain expansionFor 2012, MBSA looks forward to another year of growth and strengthening of its commercial vehicle market leadership. “We are starting to see very positive indicators; all as a result of our increasing focus on all the lifecycle-cost-reducing measures and programmes. MBSA, with its broad portfolio of service offerings from vehicle financing and insurance, CharterWay, FleetBoard, Uptime and fleet management services, is uniquely positioned to benefit from this development,” Martin said.

In addition, the TruckStore brand, which was launched at the Johannesburg Motor Show late last year, will come to fruition in July 2012. TruckStore will cater for all commercial vehicle customers with a large model mix, in-house finance, insurance, warranties and a number of service offerings for used truck trade-in and sales. The first facility will be one of the largest, most innovative and comprehensive pre-owned facili-ties in the southern hemisphere, and construction started in February this year.

Our value-chain focussed strategy was the right way to go to cement our market dominance

Following the Star

One in every four commercial vehicles on South Africa’s roads today comes from the Mercedes-Benz stable – a remarkable

achievement considering how fiercely contended each segments of this market is.

Commercial vehicle solutions from light panel vans to

monster-sized Western Star trucks

Page 22: Supply Chain Mar12

22 Supply Chain Today March 2012

Partner with the warehouse pioneers

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

We help companies become innovators in their industries

with expert warehouse designs, premium technologies, and

over 21 years’ experience in warehouse solutions.

Our products and services include racking, shelving, ware-

house automation, forklifts, mezzanine fl oors, warehouse

design, installations, inspections and training.

For a complete warehouse solution, contact us today!

Page 23: Supply Chain Mar12

Supply Chain Today March 2012 23

We will pursue lower sulphur fuel, as well as all opportunities to introduce lower emission transportation

TRUCKING

Sprinter vans remain top sellers

MBSA CEO and President Dr Martin Zimmermann

High sales figures are ascribed to quality products and value added services such as Fleetboard maintenance services

The Truck Store concept will be introduced to South Africans later this year

Martin confirmed the MBSA commitment to sus-tainable mobility: “We will pursue lower sulphur fuel, as well as all opportunities to introduce lower emission transportation, be that electric, gas or hybrids. We are at the forefront of these developments globally, and can support these proven technologies here in South Africa.”

Green transport“We find that we have a growing number of customers who are requesting a greener trans-port solution. We are committed to achieving a positive reduction of our carbon footprint and a large part of this can be achieved by using cleaner emission vehicles. We believe business will drive the environmental issue in South Africa ahead of legislation in the short term.”

He concluded: “Generally, and in cooperation with the industry, we will continue to strengthen our call for improved fuel quality and will pursue opportunities which contribute to better road and driving safety.”

Mercedes-Benz South Africa, Lynette Skriker, Tel: (012) 677-1885, Fax: (012) 6771682, Email: [email protected]

Partner with the warehouse pioneers

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

We help companies become innovators in their industries

with expert warehouse designs, premium technologies, and

over 21 years’ experience in warehouse solutions.

Our products and services include racking, shelving, ware-

house automation, forklifts, mezzanine fl oors, warehouse

design, installations, inspections and training.

For a complete warehouse solution, contact us today!

Page 24: Supply Chain Mar12

24 Supply Chain Today March 2012

Safe Passage for Dangerous Goods

The transport of pathological specimens should be done in the safest way, adhering to strict local and international guidelines. However, there are still horror stories of cases where this does not happen. One

company has made it their mission to see that regulations are followed to the letter.

N oticing the gap in the market for packaging for infectious and biological specimens, LSS started importing and distributing products for the biotechnology industry

in 1994. Then in 2005, they were appointed the Southern Africa distributor for UK-based DGP

Group, which manufactures validated packaging for the transportation of pathology specimens. The company targets any institute or company that collects and transports pathology specimens.

LSS MD Sue Van Der Walt explains how their aims broadened from education, to delivery. “When we entered the market in 2005, little was known in the scientific community as to what the UN regulations for infectious and biological

The most significant risk of non-compliance is that the specimens may be destroyed by a regulating authority

All [infectious and biological] specimens that are transported either on a public road or by air must be packaged in the triple layer packaging system

PACKAGING

Page 25: Supply Chain Mar12

Supply Chain Today March 2012 25

be packaged in accordance with UN and IATA regulations,” explains Sue.

“Financial loss is however, not the most overriding factor of non-compliance. If there is an accident and the specimens are leaked, they could contaminate the area of the crash and infect the people involved in the clean-up as well as those in the area. This is how infectious disease outbreaks occur and the potential cost in human and animal welfare cannot be quantified,” she insists.

Cost-effectiveIt can’t be easy running such a business in South Africa, given a lack of funding for, and enforcement of regulations on, the transport of infectious and biological specimens. “We understand the limited health resources in the country and have successfully implemented strategies to ensure that funding is not an excuse for non-compliancy,” clarifies Sue. Several cost-effective strategies exist for clients.

“A major cost-saving strategy that we have encouraged clients to use is the recycling of packaging. When the specimens are transported repeatedly to a specific site, we suggest that the packaging – other than the single-use bags – be placed to one side and once sufficient packaging is collected, sent back by courier for re-use.

“The Orange Book” - UN compliant packaging in a nutshell

All categories of pathology specimens packaged must comply with the UN Triple Layer Guidelines:

• A primary container

• If tubes, they must be separated

• Containers placed in a leak-proof and sifproof bag or pot

• Sufficient absorbent in the bag to contain any leakage

• Patient documents attached to the outside of the bag and inside the rigid outer

• The bag must be placed in a rigid outer which complies with all the labelling required by the “Orange Book”

Pathology samples fall under Section 6 and the identifying symbol is a diamond-shaped label, with ‘Infectious Substance’ printed inside the diamond, with a ‘6’ printed below within the perimeter of the diamond.

Heavy fines are issued when pathology specimens are discovered not to be packaged in accordance with UN and IATA regulations

PACKAGING

The LSS 6-pack box

transport entailed. Most scientists had heard of the legislation, but not its implications and applications. We embarked on an educational programme to introduce the concept of the UN Regulations to the relevant industries, to ensure that pathology specimens arrive at the correct destination in optimum condition and are handled during transport and by the sample reception staff in a safe and secure manner.

“The packaging and transportation of infectious and biological specimens is governed by various legal institutions including the United Nations (UN), IATA, and South African road laws,” she elaborates. “This legislation aims to ensure public safety and that specimens get to their destinations in optimum condition.” As such, all [infectious and biological] specimens that are transported either on a public road or by air must be packaged in the triple layer packaging system.

Triple layer packaging“The triple layer packaging system as specified by the UN Regulations is neither difficult to understand nor implement,” says Sue.

The system consists of a primary (which holds the actual specimen), a secondary (a leak proof/airtight 95 kPa pot or pouch) and a rigid outer with legislated labels and relevant information).

The type of packaging depends on six factors: whether the specimens are infectious or biological, if they are to be transported by road or air, whether they are temperature sensitive or not and if so, what the optimum temperature required is, and how long the specimens will be in transit.

Infectious specimens must be packaged so that the condition of the specimens is maintained from sender to receiver. As such, one layer must be validated at 95kPa. “Once we fully understand the specifications of the specimens, we determine the packaging solution that will ensure that the specimens arrive at their destination in optimum condition,” says Sue.

Consequences of non-compliancyJust what happens to those who take chances? “The most significant risk of non-compliance is that the specimens may be destroyed by a regulating

a u t h o r i t y. T h e s e specimens may h a v e b e e n collected over a s ix-month period or more and this work will have to be r edone . A l so, heavy

fines are issued when pathology

spec imens a r e discovered not to

Page 26: Supply Chain Mar12

26 Supply Chain Today March 2012

“However, if pathology specimens are to be sent and recycling is not possible, then we recommend that single-use bags are used instead of the pots.

“From our side, we also limit the options available to staff who pack the specimens and thereby reduce wastage of products. This strategy also ensures that specimens are correctly packed,” Sue reveals.

The company has developed and is manufacturing several packaging systems locally, where possible, to try to reduce costs. Unfortunately, the 95kPa pots and bags require a global market to make their manufacture feasible.

Best seller “Our most successful local design and manufacture is the LSS Pathology Transport Box, known as the LSS 6-pack box. It is UN validated for the transport of infectious specimens by road or air and it is also temperature validated for the cool range of 5 to 8ºC.

A major cost-saving strategy that we have encouraged clients to use is the recycling of packaging

PACKAGING

When a scientist has specimens to take to another local institute by road, they pop the specimens into a pot and into the box, hop into the car and they are compliant. Dimensions inside are 24x21x23cm, (w x l x h) inside and 32x28x32cm (lid closed) outside the box.

“We are in a process of R&D on other products that should come on line this year,” she adds.

LSS, Tel: (021) 788-7755/082 419 3009, [email protected] or [email protected], www.lss.co.za

Don’t be left out of the May issue! • Outsourcing• Truck Review • Focus on security including fire prevention,

fuel theft

Contact Lelanie Diamond on Tel: (011) 781-1401,

E-mail: [email protected] to book your advertising space

Page 27: Supply Chain Mar12

Supply Chain Today March 2012 27

Detangling bio-perceptionsManufacturers of plastics packaging, films and other plastics products are increasingly confronted with questions from the public about bio-degradable plastics production because of their perceived environmental advantages. However it may not be that green on that side of the fence.

“The general perception is that degradable plastics will dissolve and disappear over time, while conventional plastics will be around forever. It’s not that simple: bio-based plastics are not always biodegradable and biodegradable plastics are not always bio-based,” he insists.

Biodegradable?“Contrary to popular belief, biodegradable plastics may potentially make the [litter] problem worse as degradation mechanisms depend heavily on ambient conditions,” says Anton. The federation also believes that even if biodegradable and oxo-biodegradable packaging break down in a landfill environment, it wastes potentially recoverable resources by recycling and waste management.

“Further, the risk of contamination by biodegradable plastics of conventional plastics which are currently recycled and reprocessed is a significant one, and the resultant effects on recyclate has the potential to undermine the growing confidence in recycled plastics. Effective methods for identifying and sorting biodegradable plastics would be needed in the event of their significant entry into the

It may not be that green on that side of the fence

PACKAGING

Debunking Plastic PackagingThe Plastics SA Federation is actively campaigning against the

bad environmental rap that plastic gets from most greenies.

Anton Hanekom

All food plastics packaging manufactured in South Africa are now BPA-free

T here has been a keen interest in enviro-friendly packaging from the transport, retail and logistics industries,” says Plastics SA executive director, Anton Hanekom.

“Companies are increasingly using environmental claims as a way to differentiate themselves and their products from their competitors. In turn, environmentally-aware consumers are increasingly relying on these claims to decide on products and services.

“Therefore, retailers such as Woolworths, Shoprite Checkers, Pick n’ Pay and Massmart are now part of Plastics SA’s Sustainability Council, providing the plastics industry with valuable feedback on consumers’ greener packaging needs for it to make the necessary adjustments,” he reveals.

One example is the use of Bisphenol A (BPA) - a

chemical used to make polycarbonate (PC) and

epoxy - in food containers.

BPA is said to have hormonal activity similar to the female hormone oestrogen, and can disturb biological processes at very low concentrations if it enters the human body. Plastics SA states that all food plastics packaging, including baby and other beverage bottles manufactured in South Africa, are now 100% BPA free and pose no threat to consumers’ health or the environment.

Page 28: Supply Chain Mar12

28 Supply Chain Today March 2012

KLD2

144

• BLOEMFONTEIN (051) 503 2500 • BOTSWANA (+267) 395 2652 • CAPE TOWN (021) 980 2720 • CENTURION (012) 673 2700 • EAST LONDON (043) 736 3538 • ERMELO (017) 819 2838 • GEORGE (044) 878 0115 • JOHANNESBURG (011) 626 9620 • KIMBERLEY (053) 841 0635 • MIDDELBURG (013) 246 2356 • NAMIBIA (264) 61 277 700 • NELSPRUIT (013) 741 1912 • PINETOWN (031) 792 7100 • POLOKWANE (015) 297 7275 • PORT ELIZABETH (041) 486-2122 • SWAZILAND (+268) 518 4335 • VEREENIGING (016) 422 5581/5

Partner with MAN for a successful future in trucking.Are you part of South Africa’s extensive infrastructure development project and ready to build a strong economy? If so then MAN is the right business partner for you. MAN offers a complete package that consists of a premium range of TGS WW trucks, world class warranties, superb after sales service, financial back-up and guaranteed quality on used vehicles. That, over and above our industry renowned reputation for excellence in fuel efficiency, makes our TGS WW the truck of choice for the serious business now and for the future. For more information please contact your nearest MAN Dealership.

For your Finance and Insurance requirements, contact us on 011 387 1940.An Authorised Financial Services and Registered Credit Provider.

2144 MAN warranty / brand supply chain.indd 1 29/2/12 11:54:24

Page 29: Supply Chain Mar12

Supply Chain Today March 2012 29

South African market,” he says.

“Decisions in favour of biodegradable plastics and bioplastics must be based on sound scientific criteria and a complete life cycle assessment approach. It must not lead to ideological discrimination against fossil fuel based plastics with a proven performance record. It must also not impact negatively on a sound and well-established recycling industry.”

Recycling on the upResults from Plastics SA’s 2010 survey into the state of plastic recycling in the country were released at the end of 2011. They show that the recycling rate of (converted) plastics has increased to 18%, as there is a growing demand for recycled plastics.

Out of the 241 853t of plastics that were recycled, 182 032t was plastics packaging. This is an increase of 6%, mainly due to the increased recycling rates for PE-LD/LLD (eg, pallet wrap, shrink wrap, liners, bags, form-fill and seal packaging, general flexible packaging, protective wrapping, and bubble wrap) and PET beverage bottles. As the total amount of plastics packaging in the waste stream was recorded as 605 000 t in 2010, the recycling rate for plastics packaging is 30,1%.

The Packaging and Paper Industry Waste Plan submitted to the Department of Environmental Affairs in 2011 aims toward an overall plastics packaging recycling rate of 35 % by 2015. “This could be achieved if current growth rates are That the recycling rate of (converted) plastics has

increased to 18%

PACKAGING

maintained,” says Anton.

In 2010, 194 recyclers were in operation: they recycled 241 853t of plastics, provided 4 800 jobs and created 35 000 indirect jobs with an annual payroll of R240-million. The ‘Design for Recycling’ concept was also established to ensure that plastic products made from raw/virgin material meet the needs for the recycling process to extend the life cycle of products.

Trend-spottingWe ask Plastics SA about some of the latest trends in packaging, particularly in transport, retail and warehousing. Anton tells us about safer transport and in-store handling, plastics packaging contributing to resource efficiency and plastics food packaging. Plastic packaging makes up more than 50% of the total plastics consumption in South Africa.

“Plastics packaging is not easily damaged during transport and in-store handling and is therefore more durable. Glass for instance may crack or even break, while cardboard cannot withstand humidity. Therefore plastics is a material of choice for packaging,” he insists.

Plastics food packaging is also becoming lighter, less bulky and more resilient. Over the past few years the average weight of plastic bottles and containers has decreased by 21%. This contributes to resource efficiency as less valuable raw materials are needed to manufacture it and the weight to be transported is reduced.

Plastics SA Monya Vermaak (011) 653-4787 [email protected] www.plasticsinfo.co.za

Over the past few years the average weight of plastic bottles and containers has decreased by 21%

There has been an increase of 6% in plastics packaging recycling

KLD2

144

• BLOEMFONTEIN (051) 503 2500 • BOTSWANA (+267) 395 2652 • CAPE TOWN (021) 980 2720 • CENTURION (012) 673 2700 • EAST LONDON (043) 736 3538 • ERMELO (017) 819 2838 • GEORGE (044) 878 0115 • JOHANNESBURG (011) 626 9620 • KIMBERLEY (053) 841 0635 • MIDDELBURG (013) 246 2356 • NAMIBIA (264) 61 277 700 • NELSPRUIT (013) 741 1912 • PINETOWN (031) 792 7100 • POLOKWANE (015) 297 7275 • PORT ELIZABETH (041) 486-2122 • SWAZILAND (+268) 518 4335 • VEREENIGING (016) 422 5581/5

Partner with MAN for a successful future in trucking.Are you part of South Africa’s extensive infrastructure development project and ready to build a strong economy? If so then MAN is the right business partner for you. MAN offers a complete package that consists of a premium range of TGS WW trucks, world class warranties, superb after sales service, financial back-up and guaranteed quality on used vehicles. That, over and above our industry renowned reputation for excellence in fuel efficiency, makes our TGS WW the truck of choice for the serious business now and for the future. For more information please contact your nearest MAN Dealership.

For your Finance and Insurance requirements, contact us on 011 387 1940.An Authorised Financial Services and Registered Credit Provider.

2144 MAN warranty / brand supply chain.indd 1 29/2/12 11:54:24

Page 30: Supply Chain Mar12

30 Supply Chain Today March 2012

The ideal business partner. Flexible in business, rigid in efficiency.If a versatile, hard-working van is what you need, the Mercedes-Benz Sprinter family fits the bill. You can choose between the Panel Van, the 518 Extra Long Chassis, the Freight Carrier and the People Mover, but you’ll find some items non-negotiable: the timeless Mercedes-Benz virtues of quality, durability, reliability and efficiency. All our vans, of course, are safe, economical and make

ingenious use of interior space, whether for passengers or cargo. The Sprinter is the perfect vehicle to carry just about anything you might need to transport, and now also comes standard with a 2-year / unlimited mileage warranty. For more information, contact your Mercedes-Benz Commercial Vehicle dealer, telephone 0800 133 355 or visit www.mercedes-benz.co.za/vans

A D

aim

ler

Bran

d08

2517

Page 31: Supply Chain Mar12

Supply Chain Today March 2012 31

S outh African Express Parcel Association (SAEPA) executive director and industry stalwart Garry Marshall reveals more to ‘Supply Chain Today.’

declining in demand, so less product is moving,” says Garry.

“In tough times companies look at their supply chains and often downgrade services in favour of low cost options. If it’s faster, it’s more expensive, so transport becomes slower to reduce costs,” he elucidates. This is where road would be favoured over air freight, and rail (given adequate infra-structure) more favourable over road.

EXPRESS FREIGHT

When the market is uncertain, some industries can be used as a barometer of what’s happening on the ground; express

freight is one such indicator.

Consolidation for Couriers

It’s a knee-jerk reaction to tough times

Air freight is starting to lose out to sea freight, at least in the short-term

“The movement of goods tends to be a good barometer of economic activity. If it's slower, it takes longer for stock to move. The courier timeline is quick, so you can immediately see if the economy is on the down. At the moment economic indicators show that the economy is

“Where international freight is concerned, air freight is starting to lose out to sea freight as ocean transport is slower and therefore cheaper, at least in the short-term. Lead times increase in economic uncertainty as companies chase costs,” he clarifies.

But he believes this is a short-term problem. “It’s happened before and will happen again. It’s

The ideal business partner. Flexible in business, rigid in efficiency.If a versatile, hard-working van is what you need, the Mercedes-Benz Sprinter family fits the bill. You can choose between the Panel Van, the 518 Extra Long Chassis, the Freight Carrier and the People Mover, but you’ll find some items non-negotiable: the timeless Mercedes-Benz virtues of quality, durability, reliability and efficiency. All our vans, of course, are safe, economical and make

ingenious use of interior space, whether for passengers or cargo. The Sprinter is the perfect vehicle to carry just about anything you might need to transport, and now also comes standard with a 2-year / unlimited mileage warranty. For more information, contact your Mercedes-Benz Commercial Vehicle dealer, telephone 0800 133 355 or visit www.mercedes-benz.co.za/vans

A D

aim

ler

Bran

d08

2517

Page 32: Supply Chain Mar12

32 Supply Chain Today March 2012

EXPRESS FREIGHT

The local courier industry earned R8-billion in revenue last year

a knee-jerk reaction to tough times. As exports increase, more stock is needed in the pipeline and then it picks up again.”

Storm cloudsSAEPA keeps tabs on new legislation and regu-lations likely to affect the industry. Potentially threatening legislation includes Gauteng’s e-tolling system and the Administrative Adjudication of

E-tolling will have a massive impact on the courier industry (Source: Timeslive)

Now clients know the whereabouts of their parcel at any given time

Road Traffic Offences (AARTO) – the points demerit system. Garry says AARTO produces significant administrative work, costs the industry and offers it no benefit.

E-tolling is no better. “E-tolling will have a massive impact. The association understands and recognises the need for development, im-provement and the costs these incur. However, we disapprove of the way that revenue is extracted: for example, 60% is used for administrative work,”

he explains. These costs ultimately impact the consumer. He assures us that the association will be keeping an eye on the situation.

On the domestic frontUnverified statistics gathered by overseas consul-tancy organisations, assisted by SAEPA members, reveals that the local courier industry earned R8-billion in revenue last year, which Garry believes should be higher. However, it has the highest value in Africa.

Page 33: Supply Chain Mar12

Supply Chain Today March 2012 33

The reach and frequency of express freight is also increasing into Africa. “South Africa is seen as the logistics and transport hub in Africa. However, routing on the continent is not great compared with Asia and Europe, particularly in West Africa.”

The crime issueThere are continuous upgrades in tracking and tracing software for couriers. Garry elucidates; “The bigger companies have and do invest mil-lions in technologies. In the old days tracking and tracing was a day behind. Now, it doesn’t matter if a parcel is going from Poffadder to New York, you can see immediately where it is. Web-based, real-time tracking and tracing is the norm.”

Theft in or between transit is always an issue and the industry has significant control mechanisms as well as enormous security and process-related investments to mitigate against it.

“The courier industry moves high value goods such as cell phones, credit cards with a high demand on the street, so theft is always an issue. The industry would not exist without controls and live tracking and tracing. Reports generated from this technology feed couriers with information that they can use to identify where problems lie and react to them,” he reveals.

Throughout the chainDespite the challenges, Garry is upbeat about the future. “The economy is tight and the courier industry is feeling it. There are however new op-portunities all the time, depending on the niche,” he concludes.

SAEPA comprises over 110 member companies engaged in the express freight and courier industry. The large multinational operators are members as well as South African companies so the association is representative of service providers throughout the express supply chain.

SAEPA, Garry Marshall, Tel: (011) 390-2172, [email protected], www.saepa.org.za

EXPRESS FREIGHT

There are continuous upgrades in tracking and tracing software for couriers

Routing on the continent is not great compared with Asia and Europe, particularly in West Africa

Page 34: Supply Chain Mar12

34 Supply Chain Today March 2012

EXPRESS FREIGHT

A recent survey shows that 51% of South Africans with access to the Internet are shopping online. Likewise, 54% of South Africa’s online shoppers tend to

conduct research either by surfing the Internet or compiling references from friends and family, before they make purchases.

“But what if these references reveal a bad experience because the shipping company caused a delay in delivery, lost the parcel or rerouted the package to a dif-ferent destination?” asks Jasen Small-bone, country sales manager — courier of package delivery com-pany United Parcel Service (UPS).

Global Courier Service Key for Online Retail Industry

“Such circumstances would affect consumer relationships with a particular retailer, not the courier company, which is why it’s essential to find the best logistics partner”.

Growing marketUPS reports that the enhanced visibility of shipments and specific event notification gives customers more control over their

As online shopping in South Africa is on the rise, retailers who use the Internet as their shop front should ensure they

strategically partner with the best courier and shipping service companies.

51% of South Africans with access to the Internet are shopping online

Page 35: Supply Chain Mar12

Supply Chain Today March 2012 35

EXPRESS FREIGHT

Online sales can be bolstered by one vital and imperative element within the supply chain — logistics

purchases, providing them with accurate infor-mation about their shipments.

“A well-known logistics brand helps retailers leverage purchase decisions and build consumer confidence, to give online shoppers peace of mind knowing where their goods in transit are and exactly when they will be delivered,” says Jasen.

Furthermore, with the growing use of cellphones in the country, South Africans are increasingly making online purchases with their cellphones and the Internet, improving open communica-tion — an essential mechanism for sustainable business.

According to the latest research by World Wide Worx, online retail in South Africa has entered a phase of sustained acceleration.

Online revolutionThe survey titled “The Online Retail in SA 2011” shows that the total amount of money spent on online retail goods in South Africa passed the R2-billion mark in 2010 for the first time. It reached R2,028-billion, growing at 30% over the previous year.

“The report claims that online retailers are more bullish about 2012, with the industry consensus pointing to 40% growth this year. This is en-couraging, yet we believe the continued growth in online sales can be bolstered by one vital and imperative element within the supply chain — logistics,” reveals Jasen.

“If the report states that over 6,8 mil-lion people will be online by 2015, there are over three million more people whom retailers will have to target in the future compared with the 2010 e-commerce market. Online shoppers will continue to buy from virtual retail-ers only if they trust their processes and the company deliv-ering their goods to them, which is why loyalty and trans-parency have to be established from the beginning,” he concludes.

UPS South Africa, Jasen Smallbone, [email protected], Tel: (011) 922-9200, www.ups.com

Page 36: Supply Chain Mar12

36 Supply Chain Today March 2012

MARKET FORUM

New supply chain and logistics programme The Gordon Institute of Business Science (GIBS) and Imperial Lo-gistics recently launched a Supply Chain and Logistics Programme. The partnership provides advanced teaching and research in the fields of logistics, supply chain and trans-portation management.

The programme is aimed at elevat-ing the visibility of supply chain management in and between firms in Southern and greater Africa, at helping to make supply chain management a career of choice for professionals, and at the enhance-ment of national competitiveness and economic growth in the context of these regions, through effective supply chain management.

A key feature is the establishment of both a regional and an inter-national dimension. This will be reflected in establishing links with leading centres in Asia-Pacific, the Americas, Europe and Africa, as well as recognised overseas and local academics and professionals in this field.

GIBS MBA students will be able to select a supply chain and logistics management elective in part fulfill-ment of their academic course work. GIBS will also run a number of execu-tive education short courses in supply chain and logistics management, as well as host a number of executive roundtables each year focused on sharing best practice. GIBS will be involved in carrying out research and development projects in the field of supply chain management and logistics, and the publishing of research findings.

GIBS and Imperial Logistics intend to host a number of conferences and forums each year, with the primary focus to provide a structured learn-ing environment focused on areas of topical interest in the field of supply chain management and logistics. The first of the planned events is scheduled to take place in May 2012.

Imperial Logistics Marelize Hoffman Tel: 011 821 5500 [email protected] www.imperiallogistics.co.za www.gibs.co.za

Fleet management must go green“In response to the increasing demand for information about vehicle emissions and carbon footprints, we have added this capability to the bank’s fleet reporting capabilities, says Standard Bank Fleet Management MD David Molapo.

“We believe that there will be an increasing interest in these statistics, particularly in South African branches of multi-national companies. Secondly, there is no doubt that safeguarding the environment will increasingly become a business imperative. As time progresses, more fleet managers will be examining this data even if only to see which brands of vehicles provide the best ‘value’ as far as reduced emissions are concerned,” he says.

“As a major bank, ensuring that we supply value-added services to our customers is important. The more value we add

t o o u r

products , the easier it is for our

customers to administer their fleets efficiently.

“The measuring of carbon footprints is therefore a logical step in this direction. Busy fleet owners can also, for instance, use our services to review the driving habits of their drivers. We can point out operational aberrations through our normal reporting and arrange for computer-based training for fleet drivers if required.

“There is no doubt that green vehicles and data surrounding carbon footprints will become increasingly important. We have ensured that when this information is required, it is immediately available to our customers,” he concludes.

Standard Bank Fleet Management Tel: 0860 106 249 www.standardbank.co.za

An estimated 50 million tonnes of e-waste is generated globally each year and the world is increasingly becoming burdened by a staggering amount of discarded technology. E-waste also includes discarded television sets, refrigerators, washing machines, dishwashers, different kinds of so-called environmentally friendly lighting including LED and CFL and even batteries.

Africa has become an e-waste dumping ground for the Western world. “Heavy metals, including cadmium, lead and beryllium leech into the ground at

landfill sites,” says Keith Anderson, chairperson of the e-Waste Association of South Africa (eWASA). “Most of these sites are situated close to rivers and the contaminants eventually end up in the water.”

The waste is also dangerous to informal recyclers who use open flames to try to extract copper from equipment. It is therefore imperative to have guidelines and training initiatives in place to help skill people in safe ways of working with e-waste products.

eWASA is working on a Waste Management Plan that, if accepted by government, will set guidelines for the industry. “The recycling and distribution of e-waste contributes to an increase in job opportunities. But we need to have guidelines in place to optimally manage and expand these opportunities,” says Keith.

eWASA is also working on incorporating the international standards as found under the European Waste Electrical and Electronic Equipment Directive in the proposed Waste Management Plan.Thully Madondo, Tel: (031) 575-8119,[email protected]

Focus on e-waste

Page 37: Supply Chain Mar12

Supply Chain Today March 2012 37

MARKET FORUM

It is increasingly important for businesses to have a transport solution that can adapt in size and location, and that eliminates risk and wastage. Logistics service provider Cargo Carriers has recognised the changing economic climate and offers a more flexible solution.

When demand is at a moderate-to-low level, a Cargo Carriers’ core fleet handles transportation with little-to-none of the waste or risk that comes with fully dedicated fleets in precarious times. But with the volatile downside comes periods of restocking and recovery and it’s important in these times for clients to deliver every last order – on time, every time.

The logistics provider has one of South Africa’s largest and most reliable sub-contractor fleet, trained to meet its high standards. They ‘flex the fleet’, keeping the supply chain running smoothly, giving clients low risk and high levels of responsiveness.

Flexing fleets The steel industry is a good example of the validity of a flexible fleet used by Cargo Carriers. All sub-contractors are rigorously inspected, trained and kitted with the tools and expertise to match the high standards set by the company. Vehicles are all given a 100-point check and are fitted with a Cargo Carriers’ trailer that matches the industry they transport in. With all this in place, there are over 40 sub-contractors in reserve, trained and ready to take on the excess loads of Cargo Carriers' clients.

“Of course the sub-contractors have other business,” says Cargo Carriers’ marketing director Andre van Vuuren. “But we try to ensure that we create strategic partnerships with the best ones, and look to give them repeat business. The ability to scale a fleet up and down is becoming a differentiator in a time where every cent counts.”

Cargo Carriers, Tel: (011) 485-8700, [email protected]

Logistics and packaging system for motor industryPalogix International has proven itself in the just-in-time motor industry in which its client Dynamic Automotive Systems (DAS) operates.

DAS's Johan Steyn says the result of this imperative is rather complicated logistics. “We deliver about 200 bins of product a day to a client in at least six separate deliveries. We have to keep track of the bins at all times to ensure

that we always have availability, and that's a business in itself.”

From an onsite bin depot, Palogix supplies the bins and manages, tracks and cleans them on a continuous basis. In short it takes responsibility for the entire packaging system leaving DAS to what they're good at – making car seats for Mercedes, Nissan, Ford, General Motors and others.

“Palogix has added significant value to our business,” says Johan. “They give us a complete packaging solution including a traceability system. This has significantly enhanced our efficiencies.” There are several advantages to using Palogix. “Firstly, their bins are ergonomically better designed than

any competitive product we have seen. This means they are easier to handle and more operator friendly. Secondly, Palogix operates in such a manner that our monthly costs are basically fixed. And, thirdly, they have personnel permanently on site to ensure that things run smoothly,” he says.

Palogix MD Peter Friedman says, “We started five years ago managing a small pool of bins, today it’s a significant number and growing.”

Palogix International Tel: (011) 262.3015 Peter [email protected] www.palogix.co.za

Page 38: Supply Chain Mar12

38 Supply Chain Today March 2012

Acrow 35

APC 22

Goscor Outside Front/Back Cover, 12

Man Truck & Bus 28

Mercedes-Benz 30, Inside Back Cover

Sapics 6

SSI Schaefer 26

TNT Inside Front Cover

Twintec 8

Universal Storage 15

Zetes 33

On the Move

Rob Shaw has joined Serco Industries as senior

executive – key accounts in the Gauteng office.

Sika is to acquire the global concrete admixture and cement grinding aid business of Italcementi Group (directly or indirectly controlled by Italcementi or Ciments Français), which was on the market under the brand Axim. Axim has approximately 150 employees and, through six legal entities, operates several production units and sales organisations in Italy, France, the US, Canada, Morocco and Spain.

Axim has a history of over 30 years of experience in the market and offers a broad and innovative range of concrete admixtures, cement grinding aids and specialised chemicals that enhance the performance of cement and concrete, as well as improve cement production efficiency.

MARKET FORUM

Index to Advertisers

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

PROMECH PUBLISHING Fax No: (011) 781-1403Email: [email protected]: (insert your name) ...................

............................................................

Title: ..................................................

Company: ........................................

..........................................................

Address: ........................................................................................................

...............................Code: ..................

Telephone: (.......) ...........................

..........................................................

Email: ...............................................

...........................................................

Subscription - 2012Global concrete and cement business acquisition

“The agreement will allow the group to capitalise the value of this business. Moreover it will further extend the relationship between Italcementi and Sika enhancing the reputation of both companies as innovator in the field of concrete and cement,” states Italcementi Group COO Giovanni Ferrario.

This acquisition allows Sika to significantly strengthen its market position in the relevant countries. As Ernst Baertschi CEO from Sika says: “This is a major step for Sika in the process of expanding market shares in the admixture business worldwide.”

Sika South Aftrica, Tel: (031) 792-6500 [email protected], www.sika.co.za

adopting NIGP’s Values and Guiding Principles of Public Procurement.

Joining over 80 government agencies and professional associations in North America who have also taken up the values and principles as core to best practice procurement, CIPS is also acting as a joint sponsor to champion the value of these principles.

CIPS is encouraging both public and private sector organisations across the globe to adopt the Values and Guiding Principles and embed them in their organisations.

CIPS already operates a code of ethics for its individual members, but the values and guiding principles provide the foundation for good practice at an organisational level. Development of a range of good practice guidance is already underway and the two partners are collaborating with a large number of senior public sector procurement professionals to develop the practices as practical and essential guides for professional procurement for govern-ments worldwide.

CIPS, Trudy Salandiak, Tel: +44 (0)1780 761575Email: [email protected]

Principles for public sector procurementThe Chartered Institute of Purchasing & Supply (CIPS) has combined its public sector knowledge with the expertise of the US body, the National Institute of Governmental Purchasing (NIGP), by

Rob Shaw

Lars Reno Jakobsen

Senior vice president Lars Reno Jakobsen

has been appointed as promoter and coordinator of the A.P.

Moller – Maersk Group’s business

expansion on the African continent.

Page 39: Supply Chain Mar12

Supply Chain Today March 2012 39

0825

61

Trust means any time, anywhere, down the road.

A D

aim

ler

Bra

nd

Trucks. LEAsING & FINANcING. FLEET sOLuTIONs. sErVIcE & PArTs

In Mercedes-Benz you have a partner who reacts immediately in an emergency to make sure that your journey can continue without delay. Wherever you find yourself and whatever the time, our Customer Response Centre is there for you. One free phone call is all it takes. What’s more, you can count on our service outlets throughout South Africa to provide you with genuine parts and everything you need to keep moving. It is reassuring to know that you can always rely on service with the three-pointed star.

Call: 0800 133 355 or visit www.mercedes-benz.co.za/trucks

Page 40: Supply Chain Mar12

40 Supply Chain Today March 2012


Top Related