sct-feb-11

Supply Chain Today Feb 2011 1

www.goscorlifttrucks.co.za

2 Supply Chain Today Feb 2011

www.toyotaforklift.co.za

Supply Chain Today Feb 2011 �

February 2011

Contents

Proprietor and Publisher:PROMECH PUBLISHINGTel: (011) 781-1401Fax: (011) 781-1403E-mail:[email protected] Website: www.promech.co.zaManaging Editor:Theresa Hendricks

Advertising Sales:Lelanie Lane

DTP: Zinobia Docrat and Sean Bacher

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 reproduction, the editor, authors, publish-ers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or 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 Beating Space Costs

Forklifts7 Advantages of Gas9 Image Lifted

Barcoding, Labelling Scanning & RFID11 Bar None

Sensitive Cargo13 Flying Horses

Market Forum — Unit18 Market Forum

Security & Theft23 Highway Robbery

Green Supply27 Beet the Biofuel Dilemma31 Ground Zero

Who Exactly Does What?33 Illogical Logistics

Market Forum — Supply36 Market Forum

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

Tel: 011 230 2600Fax: 011 976 2176

Email:[email protected]



� Supply Chain Today Feb 2011

COVER STORY

Beating Space CostsPerhaps the fastest growing forklift and warehouse equipment supplier in the country, Goscor Lift Truck

Company (GLTC) owes its success to great products, exceptional service, unwavering discipline and a strong belief in innovation.

The Bendi articulated forklift

O ur success is based on a bouquet of interrelated activities carried out in a coordinated and professional manner,” says Darryl Shafto GLTC.

“One of these activities is a conscious effort to always be looking for innovative solutions for our clients.”

Fortklifts to fit anywhereThe revolutionary Bendi range of narrow aisle forklifts, which GLTC brought to the country

less than two years ago, is a perfect example of such a solution.

“As the cost of space spirals, there is an increasing demand for narrower aisles and the Bendi, with its unique ability to articulate and operate in narrow aisles and spaces is helping to make a significant difference to our clients’ bottom line.

Even in widths of just 1.8m, the Bendi articulated forklift helps the operator work faster, safer and more accurately. We have also had reports from our Bendi users here and overseas that racking damage is significantly less,” says Darryl.

He adds that the Bendi, because it can pick indoors and load outdoors with equal dexterity, precludes the requirement for two machines thus enhancing efficiency. “The Bendi can load a truck straight from the rack avoiding the double handling of pallets,” says Darryl.

Outdoor use also

“The typical reach truck requires aisles of 2.5 to 3m for storage and racking, but reach trucks typi-cally have small, harder wheels and low ground clearance, making outdoor use impractical. But the Bendi, because of its unique counterbalanced design and its ability to articulate, is able to handle a similar load to a common forklift truck and work in aisles that are much narrower.”

Another advantage of the Bendi is the speed that it can transfer from aisle to aisle. Darryl explains, “Obviously, very narrow aisles (VNA) machines make efficient use of narrow aisle space, but they need large areas and longer times to transfer between aisles. However, the Bendi behaves like a VNA but moves like a conventional forklift.”

Benefits noticedSeveral high-profile retailers have seen the benefits of the Bendi including Makro and Spar. In the process of narrowing its aisles in various stores, Makro has taken delivery of a fleet of Bendi trucks from Goscor and the retailer ’s Alan Walker says that the trucks have performed according to spec and that he is pleased with their overall effect.

“Not only have the trucks performed to our expectations but also, as usual, we continue to receive professional backup and service from Goscor which helped us considerably in introduc-ing these revolutionary articulated forklifts into our system,” says Alan.

Another good example of the benefits of Bendi

An extra 40% storage space has been achieved


As the cost of space spirals there is an increasingdemand for narrower aisles

technology is at Spar Eastern Cape where, through innovative design, an extra 40% storage space has been achieved at its 9 000m² ‘slow-mov-ing’ off-site warehouse in Port Elizabeth. Two Bendi 318 articulated forklifts were bought to operate in the narrower aisles. These were the first Bendi forklifts to be used in the Spar Group nationally.

GLTC Eastern Cape branch manager Mike Burley says the main challenge in this facility was the utilisation of space as it is a long and narrow building. “The task was to help increase the stor-age capacity and the Bendis, with their unique capability to articulate and operate in very narrow spaces, were a part of the solution,” he says.

Spar Risk & Maintenance Manager at the facility, Julian Koutsouvelis says that apart from their ability to work in the facility’s narrow 1 950mm aisles, the versatility of the Bendis with respect to their ability to work both inside and outside was important in the decision to buy them. “It’s all very well having machines that can work in narrow aisles, but if one had to then transfer to another machine to load onto the outside vehicles, the advantage would be lost,” he says.

Great overseas demandSouth Africa is not the only place where demand for Bendi is burgeoning. It is the case in Europe and especially in the United Kingdom where technology is in great demand.

One of the better known companies there, which has narrowed down its aisles and has used Bendi trucks for some time is Animal. James Runcimen, operations manager at

Animal’s global distribution centre in Poole says that Bendi products have helped the company significantly reduce warehouse costs including the efficient use of space, reduced lighting, heating and building maintenance. They have also helped overcome a difficult building structure to achieve maximum storage and distribution efficiency.

Animal operates with 4 636 total bulk pallet positions up to 7m high, with 12 755 pick faces and 1 203 full pallet pick faces. A fleet of Bendi B313 articulated trucks is used to remove pallets from the marshalling areas and place stock in predetermined pallet positions. The three-wheel trucks maintain excellent stability in the narrow aisles with up to 1.35ton lifting capacity at heights of 7.2 m with no special floor requirements.

Darryl says that he is pleased that Goscor is once again at the forefront in offering groundbreaking technology to the materials handling industry. “We are dedicated to maintaining and improving our world class service levels for our customers and Bendi contributes significantly to our ability to do this,” he concludes.

Goscor Lift Truck Company, Tel: (011) 230 2600,Fax: (011) 976 2176, Email: [email protected],www.goscorlifttrucks.co.za

COVER STORY


Your priority booking code: 19122CST

Name: __________________________________________

Company: ________________________________________

Country: __________________________________________

Job Title: ________________________________________

Phone Number: ____________________________________

Email Address: ____________________________________

To register or for more information about this conference, please complete and fax the form below to +971 4 363 1938

Four ways to register:

1) Online at www.coldchainafrica.co.za

2) Email us at [email protected]

3) Fax form to +971 4 363 1938

4) Call us on +971 4 364 2975

COLD CHAINSOUTH AFRICA 2011

Promoting cost-effective, quality and temperature controlled distribution for pharmaceutical companies,biotechnology firms and government

Book and pay

using priority booking

code '19122SCT' and save up

to 20% off the standard price

International conference: 29 - 30 March 2011 Sandton Sun, JohannesburgInteractive workshops: 28 & 31 March 2011 South Africa

Ticky RaubenheimerChairman

Collaborative Centre for Cold Chain Management

John AckermanChairman

South African Refrigerated Distribution Association

Dr. Jean-Antoine Zinsou General ManagerSanofi Pasteur

Dr. Iain BartonExecutive Director

RTT Group

Outstanding executive contributions providing essential insight:

Welcoming global cold chain guru:

Researched and developed by:

Associatesponsors

Solution provider Media partners

Rafik Bishara, PHDTechnical Advisor, and ChairPharmaceutical Cold Chain Interest Group (PCCIG), Parenteral Drug Association (PDA), USA

Book now for the threeworkshops that will

address validation and auditing as well as

best practice and cold chain shipping

• Find out how Kirk Nash, Head of Logistics at Adcock Ingram is achieving optimal validation and temperature control through innovative packaging

• New technologies in pharmaceutical storage and distribution will be addressed by Mathias Hoewer, General Manager (Automation) Middle East and Africa,SSI Schaefer Systems International DWC LLC

• Abrie Potgieter, Supply Chain Manager at DairyBelle will be giving the FMCG perspective on cold chain management on how to identify risks

Advert_Layout 1 2011/01/26 3:55 PM Page 1

www.coldchainafrica.co.za


F or example, the main advantage LPG has over electricity is that it is more suitable for use both inside and outside and allows

for less downtime.

Gas-powered forklifts provide consistent power for longer periods and are effective on any surface. Moving heavy loads is not possible for forklifts powered with electricity and, the power output is re-duced as the battery discharges.

Less downtimeBecause an electrically powered forklift needs to be recharged for between 6 – 8 hours for an equivalent working period, it increases downtime and means more batteries are required for continuous operation.

It takes approximately five minutes to refuel a forklift running on gas which obviously increases productivity – a vital benefit to businesses whose margins depend on getting the most out of every working day.

Reduced costsElectrically powered forklifts require extra equipment such as batteries, chargers and hoists and, additionally, ventilated space in the form of charging and wash down rooms. There is no need for any of this with gas powered forklifts and there is no risk of a power cut.

Gas-powered forklifts have longer service intervals than their electrically powered counterparts while labour costs are re-duced due to the elimination of charging operation management.

Simply put, electrically driven forklifts are best suited for indoor operations. Gas-powered units are suitable for both indoor and outdoor usage.

Easigas, Tel: 0800 001 504, Email: [email protected], www.easigas.co.za

Advantages of GasNobody needs to be told about electricity prices, however there are many other valid busi-

ness reasons to run a fleet of forklift trucks on gas.

Gas powered forklifts have longer serviceintervals than their electrically powered counterparts

FORKLIFTS

Your priority booking code: 19122CST

Name: __________________________________________

Company: ________________________________________

Country: __________________________________________

Job Title: ________________________________________

Phone Number: ____________________________________

Email Address: ____________________________________

To register or for more information about this conference, please complete and fax the form below to +971 4 363 1938

Four ways to register:

1) Online at www.coldchainafrica.co.za

2) Email us at [email protected]

3) Fax form to +971 4 363 1938

4) Call us on +971 4 364 2975

COLD CHAINSOUTH AFRICA 2011

Promoting cost-effective, quality and temperature controlled distribution for pharmaceutical companies,biotechnology firms and government

Book and pay

using priority booking

code '19122SCT' and save up

to 20% off the standard price

International conference: 29 - 30 March 2011 Sandton Sun, JohannesburgInteractive workshops: 28 & 31 March 2011 South Africa

Ticky RaubenheimerChairman

Collaborative Centre for Cold Chain Management

John AckermanChairman

South African Refrigerated Distribution Association

Dr. Jean-Antoine Zinsou General ManagerSanofi Pasteur

Dr. Iain BartonExecutive Director

RTT Group

Outstanding executive contributions providing essential insight:

Welcoming global cold chain guru:

Researched and developed by:

Associatesponsors

Solution provider Media partners

Rafik Bishara, PHDTechnical Advisor, and ChairPharmaceutical Cold Chain Interest Group (PCCIG), Parenteral Drug Association (PDA), USA

Book now for the threeworkshops that will

address validation and auditing as well as

best practice and cold chain shipping

• Find out how Kirk Nash, Head of Logistics at Adcock Ingram is achieving optimal validation and temperature control through innovative packaging

• New technologies in pharmaceutical storage and distribution will be addressed by Mathias Hoewer, General Manager (Automation) Middle East and Africa,SSI Schaefer Systems International DWC LLC

• Abrie Potgieter, Supply Chain Manager at DairyBelle will be giving the FMCG perspective on cold chain management on how to identify risks

Advert_Layout 1 2011/01/26 3:55 PM Page 1


www.tnt.com


G erman-based Junghein-rich is internationally-recognised as one of the world’s top three

leading manufacturers of forklift trucks and materials handling equipment, employing more than 8 000 people in over 100 countries. However, during the number of years it has been active in South Africa, the company has not met its South African market projec-tions as a result of insufficient representation.

It was for this reason that JHR Equipment SA was set-up as the exclusive regional partner to of-fer the complete range, as well as provide backup service and spares availability.

According to JHR Equipment SA chairman, Alan Keschner, “In the past, a few local distributors sold other brands of standard forklifts as well, and were thus only able to sell specialised J u n g h e i n r i c h warehousing re-lated machines, effectively reduc-ing the ability for

clients to select and standardise on the our brand.”

Unrealised potentialColin Govender, managing direc-tor of JHR Equipment goes on to explain that JHR Equipment is the only local company that employs technicians that are fully-trained by Jungheinrich, and who have access to the latest authorised

Image LiftedLeading international logistics specialist, Jungheinrich AG, has teamed up with newly-

formed local company, JHR Equipment SA, to re-launch its brand of materials handling ma-chinery in the South African market.

software to deal with any technical problems. Such software is only available to authorised partners and is not universally available.

Access to a full range of spares“Thanks to this new partnership, we have access to the full range of genuine Jungheinrich spares, and we offer top-quality maintenance services. While a number of local companies may service our machinery, they do not have access to the latest diagnostic software that is exclusive to JHR Equipment. By using laptops and advanced computer programmes, we are able to digitally diagnose a fault in most machines and rectify it with minimal downtime. Another added benefit is that we have qualified technicians in Germany who are on-call, should we be unable to deal with a particular problem,” Colin adds.

The company offers all popular methods of en-gines, from petrol to diesel to gas. In addition, they are world leaders in state-of–the-art electric

FORKLIFTS

Colin Govender

Alan Keschner

Have access to the latest authorisedsoftware to deal with any technical problems


technology, and are taking a proactive approach towards increasingly-stringent international en-vironmental laws. All equipment complies with strict EU measures to minimise the contamination of environment and food products - a factor that is essential to many companies.

Wide range of trucks availableThe electric counter-balance and reach trucks are ideally-suited for food and pharmaceutical warehouses, and come in a wide range of variants in terms of reach height and payload capacity. Colin points out that Jungheinrich electric reach trucks can attain staggering lift heights in excess of 14 m. Other equipment available includes hand pallet trucks, pallet trucks, stackers, IC trucks, order pickers, tow tractors and VNA trucks.Importantly, Colin notes that their range of forklift trucks and warehouse equipment is custom-built and configured to suit a customer’s specific re-quirements from within six to eight weeks – one of the shortest turnaround times in the industry.

“Owing to the advanced design, Jungheinrich’s lifting capabilities can match or exceed most machines available in the market, with reduced de-ration and an ergonomically designed driver ’s cab,” says Colin. “The machinery is also highly-reliable, with increased service intervals. With the ability to handle high heights and narrow aisles, our machinery can ultimately reduce costs per m2 for clients, effectively paying for itself in the process.”

New refurbishing factory In addition to new machines, Jungheinrich has commissioned a special factory in Germany, which is dedicated to refurbishing equipment that has ended its lease period. These machines are completely re-built and re-sold to the market at very competitive prices.

“The rebuilt machines are ideal for the South African market, as consumers are able to buy a high-spec machine that looks and performs like new and comes with a warranty, for a greatly-discounted price. This is a better option than purchasing a new, lesser-quality machine for much more,” notes Alan.

He stresses that it is not the Jungheinrich brand that needs to be introduced to the market, rather the extended range and new and improved services that JHR Equipment will be offering.

JHR Equipment SA, Colin Govender, Cell: 082 322 7723, Email: [email protected], www.jhrequipmentsa.co.za

FORKLIFTS

By using laptops and advancedcomputer programmes, we are able to digitally diagnose a fault in mostmachines

www.nissanforklift.co.za


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

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

Stable technology“The technology has stabilised to a large extent and not much appears to be moving

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

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

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

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

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

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

“Essentially, the guy delivering Coke has this level of sophistication at his fingertips, combined with the advantage of rugged usability. Many of these clever scan-ners have high IP ratings and can be dropped from two metres, or survive 1 000 tumbles from one metre. These ratings also give assurances of operation even when exposed to dust or water ingress. Some can operate after being submerged for an hour.”

Systems are failingAccording to Nico, Smart Phone manu-facturers have been trying to move into the scanning market, but with limited success. “The brands were aimed at sales reps going into supermarkets and similar applications,” he explains. “A year later, these systems were failing. They’re simply not tough enough. In the case of one Smart Phone, the back would fall off and the battery would fall out.

Bar NoneSome industries are regularly in the headlines by virtue of the fact that they often experience vast technologi-cal advances, but for the most part change comes incrementally. However, it is these small changes that add

up to big improvements in the long run.

Nico Scheepers

Rugged usability is a key feature in most environments

BARCODING, LABELLING, SCANNING & RFID

Some can even scan 2D from seven metres away


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

New scanning technology puts increased levels of accuracy in the hands of forklift operators

BARCODING, LABELLING, SCANNING & RFID

The back would fall off and the battery would fall out

The question then becomes of who want to maintain the devices for 3 to 8 years.

“Rugged devices are just stronger, and also have the service support to back them up. While you may be paying anything from R8k to R50k, at the top of the range you’re look-ing at units that can handle forklift vibration levels while incorporating Bluetooth tethers and other sophisticated funcationality.”

DC Picking upPicking has also seen improvements, with voice technology gaining more ground. “In many instances, companies are going all voice; they barely even look at a barcode anymore,” Nico goes on. “A lot of retail chains have taken this route. The system allows pickers to be hands-free, while ensuring accuracy. Ease-of-use and swift training are other attractions. Pickers can be operational after 20 minutes of training.

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

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

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

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

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

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

Supply Chain Today Feb 2011 1�

S upply Chain Today” was curious to learn how WEG’s equine contestants arrived on the scene. With over 800 horses and riders competing in the Games, 445 of

which were based in Europe, organising logistics was a job best left to the experts. So the horses were Fedexed.

Utilising wide-bodied modified jets carrying 50 horses per trip, Fedex managed the tricky task of loading and shipping its equine passengers

from Liege Airport in Belgium to Kentucky, USA. The project involved ten specialised charter flights over a 14 day period. While equestrian flights aren’t a new concept, it was the first time a commercial airlift of this size has taken place for an international event.

Class systems Much like conventional air travel, the equestrian flight offered three different classes, with the entry level Economy Class priced at 8 500 Euros, followed by Business and First Class with prices going up to 13 000 Euros.

While human First Class may boast champagne service, the main dif-ference for equine passengers came in the form of space, with class determining how many horses were allocated to each ‘air stable’. Economy Class catered for three horses per stable, Business Class had two, while First Class allowed maximum space with just one horse per stable. While most traveled Business Class, rumour has it that only one horse was allocated a First Class ticket, but its identity remains a mystery.

Having been separated by class, organisers also kept specific types of horses together, with stallions kept separate for safety reasons and they arranged the travelers accord-

ing to their various sporting specialities, such as eventing, jumping and dressage.

Up, up and on boardCompetent animal handling was a vital cog in the process and from the time each horse ar-rived in its pre-boarding paddock to the time it reached its temporary stable yard in Kentucky, it was escorted by an experienced handler. Each flight had a crew of 24, including attendants, vets and grooms, many of them professional flying grooms.

With horses being highly sensitive to disruption it was essential that each individual be moni-tored carefully throughout the trip to ensure that they arrived in optimum condition to compete. Fragile limbs and finicky digestive systems can result in disabling or even fatal consequences. All qualified personnel accompanied the horses from their country’s particular Equestrian Federa-tion to monitor signs of trouble. In the case of a Federation not having a vet, a vet from another Federation monitored their charges.

From the pre-loading paddocks, the animals were

Entry level economy class priced at 8500 euros, followed by business and first class with prices going up to 13000 euros

The Altech FEI World Equestrian Games (WEG) held in Ken-tucky in September last year drew considerable attention from the riding community. The Games, which hold similar prestige

in riding circles to the Olympics, are held every four years with numerous countries vying for the privilege of hosting the event. In fact, the Games were the largest sporting event in

the US in 2010.

Flying Horses

Fedex provided transport for nearly 450 horses from Europe to the Altech FEI World Equestrian Games in Kentucky, USA

SENSITIVE CARGO

1� Supply Chain Today Feb 2011

loaded into large crates resembling wheel-less horse boxes. With most being accustomed to this mode of transport the familiarity minimised stress during travel. Although many had numerous flying miles under their belts, first time flyers needed all the care they could get. Boxes were transported by truck to the plane and crane-lifted to a wheel bed where flight staff moved the horses to their berths and secured them.

Service with a smileIn-flight entertainment may have been limited, but personal attention certainly wasn’t. If personnel sensed that a horse was claustrophobic, more space was given. If individual temperatures rose due to stress or cabin heat, equines were hosed down to cool off. Some flights employed air-con-ditioning systems to keep temperatures constant. Much like their human counterparts, nervous fliers were offered reassurances by sympathetic staff, with sedation available if necessary, although this was considered a last resort.

“It was too loud on board to warrant anything like soft music, but there were plenty of bad jokes from the flying grooms to keep everyone entertained,” quipped Henry Bullen, director of Peden Bloodstock, the company which provided the on-board grooms. According to Henry, once airborne, traveling is actually smoother than

Horses were loaded into specially designed flying stables

Crates were loaded into the plane by crane

SENSITIVE CARGO

www.linde-mh.co.za


Qualified staff managed the process from start to finish

SENSITIVE CARGO

road transport, apart from occasional turbulence. Pilots were briefed to ensure smooth, gradual take-off climbs, while slower braking systems were installed for landing.

Preserve the priveledgedDietary requirements were also an impor-tant consideration since horses require a constant supply of grass to keep their digestive systems healthy. In addition, nuts, oats and bran were supplied, along with ample water; each flight carried over 1 500 litres. At the end of the nine hour flight, the athletes were transported by road to southern California for a 48-hour quarantine.

First Class flying has always been con-sidered the preserve of the privileged, with Business Class reserved for wealthy industrialists en route someplace impor-tant. Now it seems that even a horse can fly in more comfort than those of us in Cattle Class. But perhaps if we were all worth millions of Euros, we’d be afforded the same luxury.

Source: www.fei.org

Getting the right goods to the right place atthe right time is a timeless advantage. Butthe way in which we achieve this is foreverchanging. Only continual innovation can createand maintain competitive advantage. This iswhy we build flexibility into our supply chainmodel. And why we are actively involved inmanaging it. Enabling low-risk supply chainevolution that brings about efficiency andadds the greatest value. This is how we dosupply chains.

Call us. We go the extra mile.

t +27 11 485 8700 [email protected]

Innovative supply chain solutions

1109

www.cargocarriers.co.za


Much less of a slurper.

The future of fetch & carry is here. In spite of the fact that our new range of trucks offer you engines with more power

& torque, you will also find that most of them are more fuel efficient. The entire FK/FM range has also been upgraded to

greener Euro 2 emissions level engines with super efficient common rail fuel injection. So your FUSO will fetch, fetch and

fetch again... Another reason why FUSO should be your business’s best friend.

CALL 0861 FUSO 00 OR V IS IT WWW.FUSO .CO.ZA AND CHOOSE FROM OVER 30 DEALERSHIPS NATIONWIDE

Untitled-8 1 2011/02/10 5:20 PM

www.fuso.co.za


Much less of a slurper.

The future of fetch & carry is here. In spite of the fact that our new range of trucks offer you engines with more power

& torque, you will also find that most of them are more fuel efficient. The entire FK/FM range has also been upgraded to

greener Euro 2 emissions level engines with super efficient common rail fuel injection. So your FUSO will fetch, fetch and

fetch again... Another reason why FUSO should be your business’s best friend.

CALL 0861 FUSO 00 OR V IS IT WWW.FUSO .CO.ZA AND CHOOSE FROM OVER 30 DEALERSHIPS NATIONWIDE

Untitled-8 1 2011/02/10 5:20 PM

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

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Untitled-8 1 2011/02/10 5:37 PM

www.fuso.co.za


Market ForumNew container handlerSACD Freight purchased its first Taylor THDC 975 loaded container handler about two years ago to improve full container operational efficiencies and capacity on site. Because the facility has now become even busier, SACD has invested in a new Taylor TEC SP-156H empty container handler,” says Clinton van den Berg, products manager for BLT.

“The new Taylor container handler will further improve the Durban operation’s empty container storage and handling capacity and will enhance service levels. The company, which handles over 400 000 containers annually and stores over 8 000 full and empty containers nationally at any one time, is committed to providing reliable trans-portation logistics solutions.”

Taylor container handlers and reach stackers are avail-able exclusively throughout Africa from BLT, which offers a technical advisory, maintenance, operator training and support service.

Clinton van den Berg, BLT. Tel: 031 274 8270. Email; [email protected], Web: www.biglifttruck.com

Achieve compliance easilyThe new R146 Labelling and Advertising of Foodstuffs Regulations, designed to help consumers make informed product purchasing decisions, will require manufacturers to supply additional information on food product labels. One of the provisions of the regulations is the inclusion of date marking and batch number information on products stipulating when the product should be used by as well as where it was manufactured. With only four months to go, Pyrotec PackMark addresses issues manufactures may face on the road to compliance with the law.

2011 expected to be a cautious recovery yearDue to the industry’s exposure to a variety of sectors, the South African freight industry’s performance remains closely linked to the performance of the South African economy. With 2011 expected to be a cautious recovery year, the industry is not out of the woods yet.

According to Rudi Schellhorn, National Sales Manager of Pyrotec PackMark, the machinery division of Pyrotec,many companies are daunted by the date and batch coding requirement of the new regulation as they do not have the required coding expertise to fully comply with the law.

Most manufacturers are also concerned about production downtime during the transition period, which they cannot afford. Pyrotec PackMark is the sole distributor for Markem-Imaje, a trusted worldwide manufacturer of product identification and traceability solutions.

With an extensive knowledge of the requirements of the new regulations, the backing of some of the best coding and

labelling machinery in the world, as well coding expertise spanning over 40 years, Pyrotec PackMark is confident that it can help manufactures comply with the batch and date coding before March 2011.

Lizarie du Plessis, Pyrotec. Tel: 021 787 9611, Web www.pyrotec.co.za


Market Forum

Heavy duty forklift trucksCriterion Equipment’s range of TCM heavy duty forklift trucks, with load capacities between 10 T and 23 T, is designed for efficient operation, easy maneuverability, operator comfort and low maintenance requirements.

Some areas of immediate concern include the impact from the recent floods on the agriculture, building and construction industries. These industries utilise freight forwarders the movement of goods, and as the rains may have destroyed some crop shipments as well as delayed building contracts, the shift or cancellation of contracts for transporting goods is expected to affect freight for-warders.

In addition, logistical delays and re-routing of trucks to avoid flooded or flood damaged areas could also affect margins.

In the medium term concerns have been raised about the cost of transport particularly with regards to fuel prices and especially in areas such as Gauteng. The soon-to-be-introduced toll system poses threats to an already highly price competitive industry.

Some positive elements include the effect the rand value has had on the lower cost to import goods which saw a slight improve-ment towards the end of 2010.

Overall, the recovery of the freight industry in 2011 is directly linked to the recovery of the South African economy which is expected to be cautious in 2011.

Natasha Hardy, Coface. Tel: 011 208 2601, Email: [email protected]

“The robust TCM FD series, also known for enhanced safety and extended service life, has been designed for improved drawbar pull and gradeability,” says Gerhard Duvenhage, national sales manager for Criterion Equipment “Another important feature of these heavy duty forklift trucks is the environmentally friendly, low emission engine, with a rated output of between 114 kW/2 200 r.p.m and 125 kW/2 200 r.p.m. The overall raised mast height of these ma-chines are between 4 400 mm and 7 790 mm.”

The FD range has a maximum fork lifting height of 6 000 mm, lifting speeds of between 240 mm/s and 460 mm/s (with a load), a forward/backward mast tilt angle of 6/12° and a traveling speed of 34 km/h. These machines have an outside turning radius be-tween 4 000 mm and 5 350 mm and considerable lateral fork adjustment.”

Another advantage of the 16 T – 23 T series is the increased 400 litre fuel tank capacity, which enables

extended operating time, before the need for refueling.

Gerhard Duvenhage, Criterion Equipment (Pty) Ltd. Tel: 011 966 9700, Email: [email protected], Web: www.criterion.co.za

The FD range has a maximum fork lifting height of 6 000 mm


Market ForumRescue SA receives a liftFounded 10 years ago, Johannesburg-based Rescue South Africa is Africa’s only advanced urban search and rescue operation today. The Rescue SA emergency response team has been deployed to humanitarian disasters all over the world, most recently the Haitian earthquake and an aircraft crash in the jungles of the Republic of the Congo.

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To help the non-government organisation operate more efficiently and ensure a rapid response to disasters, Barloworld Handling has now provided it with a 2.5 ton Hyster forklift. This will be used in the Rescue SA ware-house in Kempton Park. The specially refurbished LPG forklift was supplied at a significantly reduced rate as part of Barloworld Handling’s corporate social investment

programme.

The Rescue SA team previously had to weigh, load and off-load all equipment by hand. To illustrate the enormity of this task, the relief mission to Haiti required hand load-ing of nine tons of equipment, says Rescue South Africa founder and CEO Ian Scher. “The forklift from Barloworld Handling will help us run a more professional operation and save many hours of the rescue team’s time.”

“Our next aim is to offer disaster and rescue training throughout the SADC region, to improve local skills sets. We have already purchased the necessary training equipment, funded by USAID, for this,” says Scher.

Rudolph Briedenhann, Barloworld Han-dling. Tel: 011 898 0480, Email: [email protected]

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Hoists hold steadySales of Hitachi chain-hoists into mines and the automobile industry remain steady despite the generally difficult economic conditions experienced by both sectors.

Authorised distributor Condra reports that Hitachi sales into warehousing applications are slightly up.

The chain-hoists are well known for careful design and their ability to perform well under robust conditions. They feature helical gearing for quiet op-eration, electro-magnetic disc brakes for long life, and plug-in cables to reduce maintenance and installation time.

Safety features include a 24-volt impact-protected and rain-proofed control pendant with wire rope moulded into the cable for strain relief. An elec-tro-magnetic contactor with mechanical interlock protects against shorting due to shock.

Emergency stop buttons and overload protection are available on request and chain containers are fitted as standard.

Hitachi chain-hoists have upper and lower limit switches to prevent hook over-travel, and most models are fitted with a reverse-phase relay to facilitate inspection.

Among the more ordinary features in the range are chains with hardened surfaces for optimum strength and wear resistance, and hooks that are heat-treated and fitted with a safety latch and 360-degree swivelling.

Condra, the Germiston-based manu-facturer of high-capacity overhead cranes in the 2-ton to 500-ton range, was appointed sole South African distributor of Hitachi hoists in September 2009.

The company is now using the Hitachi product to target lifting applications in the 250kg to 2-ton range.

Josef Kleiner, Condra (Pty) Ltd. Tel: 011 021 3712, Email: [email protected]

Market Forum

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www.shelving.co.za


S upply Chain Today” recently attended the first RFA Fraud Forum, aimed at identifying areas of concern and providing possible solutions. The Forum was led by Bakkies

Buitendach, Executive Director of the Forensic Response Group, along with Brian Peters, CEO. The company specialises in crime investigation, forensic accounting, procurement consulting, labour consulting and security services.

Fraud and theft takes numerous forms, from overt hijackings to white collar crime. Although violent activities often take centre stage, profit margins and productivity can be seriously eroded by petty theft, often managed by widespread syndicates who operate ‘below the radar ’. Clearly, all of these situations require different approaches, however both Bakkies and Brian stress that the best weapons in a company’s arsenal against crime are vigilance and an understanding of both criminal investigation and labour relations.

From the floorThe audience was invited to share their experi-ences and thoughts on the problems currently being experienced in the industry. Primary among the issues raised was the problem of police re-sponse to fraud within companies. Many felt that investigations take too long to conclude and often culprits walk free. Confidence in the process is also low, with stories of police corruption and destroyed evidence.

Other members in the audience had attempted to outsource their investigation process, with a few admitting that they’d been taken advantage of by so-called experts who subsequently failed to produce results. The additional problem of fluctuating fee structures also arose with many ‘investigators’ appearing to charge random sums for inexplicable ‘services’.

It is important to note that a labour case is faster than a criminal case and it’s not necessary to await the outcome of a criminal case before taking up a labour matter. In addition, unlike criminal cases, labour cases do not require guilt to be proved beyond a reasonable doubt. Bakkies adds that by enforcing disciplinary and criminal action, management not only sends a clear message to other employees, but also stands a better chance of recouping some losses. Section 300 of the Criminal Prosecution Act dictates that criminals must reimburse a portion of stolen property.

Bad companyAnother problem brought up by members in the audience pertained to fraudulent companies of-fering supply chain services. Unscrupulous freight brokers were a bone of contention, but while some advocated the implementation of a blacklisting system, it was agreed that apart from the legal issues involved, this would merely compel fraud-sters to resort to other forms of crime.

Bakkies and Brian added that companies should also be wary of labour brokers. In some instances,

Highway RobberySouth Africa’s motorists are at the mercy of a multitude of criminal activities and those who use the roads most, namely the coun-

try’s transport companies, are hardest hit. In many cases these crimes invariably extend

beyond the tarmac.

‘Investigators’ appearing to charge random sums for in-explicable ‘services’

SECURITY & THEFT


SECURITY & THEFT

the brokerage may be free to waive responsibility if things go wrong, leaving the client carrying the cost. Furthermore, while the broker may remove a particular individual from a facility, there’s no guarantee that the broker won’t simply reassign him or her to another project, particularly when marketable skills are concerned.

One member of the forum told the group about a bookkeeper who had stolen R219 000 by skimming cash from deposits and altering slips to hide the theft. She had been sourced by a labour broker who took no liability for crimes committed by their staff leaving the organisation convinced that they had no recourse. Bakkies advised companies to deal with brokers who accepted liability as well as having insurance to cover themselves in the event of an incident.

Unusual suspectsOften a wheeler-dealer attitude or a desire to beat the sys-tem will indicate a potential threat but crime doesn’t always surface in the most likely places. Criminal checks should be standard procedure, particularly for financially-sensitive positions, but remember that not every criminal has a record. The over-assertive micro-manager could be using aggression to mask illicit activities knowing that nobody dares question him. On the other hand, the likable, hard-working employee who never takes leave may be using quiet periods in the office to get a hand in the till.

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One or two members may end up contributing while others benefit without making any effort

SECURITY & THEFT

On the topic of tills, one interesting case study showed the lengths miscreants will go to earn a dishonest buck. An audit of a store showing a steady stock loss uncovered that someone had set up an additional till point and not even the supervisors had realised that there were nine stations instead of eight. This point highlights an issue in many companies: management has to have control over their systems. It’s not enough to put a system in place and expect it to fix everything since the information entered may be incorrect.

Information systemsGenerally it helps to be a step ahead, and here, accurate informa-tion is key. Those in the know are able to spot common indicators of fraud, or the potential for it. High personal debts, living be-yond means, gambling problems and drug or alcohol addictions can all lead an employee to dip into company coffers. Research indicates that it is possible to bribe a high-earning employee, for instance someone who earns between R800k to R1mill per an-num, with as little as a thousand rand. For others, a few cigarettes will suffice.

It’s a mistake to overlook petty theft since sometimes this can be a means for syndicates to test security systems. It is also unwise to assume that low-earners are stupid. A menial job may be the perfect cover for a lucrative role as an inside contact. Hijackings are a good example, particularly when they occur with a low injury rate. Sometimes it’s as simple as stopping at the roadside and waiting while a second truck arrives with a forklift to unload goods and drive off.

Be aware that syndicates can be all-pervasive, and implement measures to determine whether your company is a target. Under-stand that syndicates can be as interwoven as a family, with some including initiations, identifying tattoos and even blood ties.

Companies at risk are those with a lack of competent per-sonnel, as well as those with a rapid turnover of key employees. Criminals invariably exploit tran-sition periods. It is a good idea to be vigilant during quiet times or year-end phases which may

be used to mask duplicate invoicing or unusual transactions.

Some staff will ingeniously manipulate the sys-tem to their advantage. For example, by delay-ing delivery of a large order and then rushing it through security to meet deadlines, items may slide through the system unnoticed.


Tightening the netAll the systems in the world won’t be effective if similar protection methods are not implemented down the line. If problems are happening with third party suppliers, there’s every chance that this will impact your bottom line too.

There needs to be an incentive to disclose infor-mation and employees who provide information may also need protection.

Information sharing between companies is also vital, though some members of the group displayed a reluctance to take this step, citing issues of protecting business information. This raised the additional concern that ultimately, while one or two members may end up contributing, others would benefit without making any effort. Eventu-ally the drivers of the programme lose interest. This could be avoided by bringing in an outside expert, such as Matrix or Tracker, for example.

Another solution could be the establishment by the RFA of a Hotline or sms system to alert members of hijacking hotspots giving information on varying threat levels. Ultimately, the efficacy of the process is reliant on the big role players driving it.

Building relationshipsIn conclusion, it was determined that by putting processes in place, a company can not only make crime more difficult, but also police can be given more to work with when they need to make a case. On this note, police relations need to be developed, with comprehensive statements being provided regarding theft. Criminal conviction rate depends on the prosecutor, clarity of testimony and strength of forensic audit. Follow-ups should be conducted professionally and politely.

If forensic companies are to be contracted, these need to have relevant credentials and adequate infrastructure; organisations should do their homework when choosing a specialist. If all par-ties manage to work more effectively, together, a better outcome may be reached.www.rfa.co.za

There needs to be an incentive to disclose information

SECURITY & THEFT

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GREEN SUPPLY

E urope has given the matter much attention, and Swe-den has been leading the pack with its strong focus

on environmental sustainability. The country managed to reduce dangerously high air pollution levels in Stockholm over just a couple of decades by implementing strong carbon emission controls.

When “Supply Chain Today” chats to Winston Muir of Scania, along with Eugene Beetge and Rynoux du Preez from Silversands Ethanol, they have a lot to say about the fuel situation in South

Africa. “Johannesburg’s air pollution is currently three times higher than Stockholm’s was when authorities there deemed it hazardous,” Winston warns.

Sweet dealIn spite of these words, he’s optimistic about the situation on the home front, citing the proposed Metro bus tender as evidence of Local government’s commitment to the process. “Joburg Metro’s op-eration of our demonstration Ethanol buses is a

Beet the Biofuel Dilemma

Johannesburg’s air pollution is currently three times higher than Stockholm’s was when authorities there deemed it hazardous

Rynoux du Preez of Silversands, Winston Muir of Scania and Eugene Beetge of Silversands

The switch to biofuels has been a hot topic for some time with dwindling fossil fuel reserves

growing increasingly costly.

Scania’s Ethanol buses have drawn increasing support on the local front


step in the right direction,” he tells us. By modifying its normal diesel engine, the company has effectively created a system that is capable of running efficiently on bio-ethanol. These have been used extensively in Europe and have now been introduced locally. The fuel is so clean that exhaust emissions are reduced by up to 90% compared with Euro 2 diesel buses. Sweden has a similar fuel option, E100, for use in cars.

Ready source“Until recently, the Metro bus has been running on imported fuel,” Winston continues. “However, Silversands’ bio-ethanol plant is now producing ED95, which will mean we have a ready source of locally produced fuel, and this fuel will have 90% local content.

Using sugar beet as a feed stock, the company produces a biofuel that is entirely home-grown and organic, aside from an additive which makes it suit-able for use in a diesel engine. “Our farm is the first commercial sugar beet

operation,” Eugene explains. “Until now we’ve been working through the trial phases. Now our first batch is awaiting the lab reports to confirm that it meets Scania’s specs. We’re confident it will make the grade,” he smiles.

Job creationSugar beet is a little known product in South Africa, so farm-ers have required some education regarding the production process. In a bid to bring additional value to the project in the form of job creation, Silversands has split production between its main farm and a number of smaller empower-ment farms in the area. These farmers are given seeds and support to enable them to contribute to the process.

“It’s an easily grown vegetable, with irrigation being its main requirement, and even here, it needs less water than vegetables such as mielies or sugar cane. In fact, it will grow without irrigation, but then you’re at the mercy of the elements to determine your output. Also, since there’s no other commercial demand for it apart from our ethanol production, there’s no food competition.”

With a 10 out of 12 month growing season, sugar beet can be grown in a rolling production process that covers almost the entire year. It’s also an abundant crop with yields that are 20 times greater than maize, and farmers being assured of two to three times the return. It’s hardy and can survive for months before harvesting, protecting producers from potential loss if crops aren’t sold immediately.

Competitive pricing“It’s an incredibly cost-effective plant, which is why we

It’s also an abundant crop with yields that are 20 times greater than maize

Sugarbeet is a large plant that grows with relative ease

GREEN SUPPLY


There are numerous stumbling blocks to biofuel acceptance, the main one being acceptance from the fossil fuel suppliers

Biofuel could be the answer to South Africa’s increasing air pollution problem

Abundant crops can be harvested from small areas

work with it,” says Eugene. “If you produce the fuel from anything else the cost would double; sugar beet makes bio-ethanol competitively priced compared with diesel.”

The growth phase is five months and harvesting takes around a month, with local labour being employed for the task, further enhancing the job-creation facet. “It’s a large underground plant that needs to be dug out,” Eugene explains. “It can be done using specialised equipment, but this would negate the labour advantage without significantly increasing output.” In order to ensure supply security, various farmers are contracted into the project to counter the problem of supply interruptions due to bad crops.

Once harvested the plant is crushed, boiled and distilled to 96% alcohol. At this point, the additive is put in, after which it is tested. “The process is actually quite straightforward,” continues Eugene. “However there are numerous stumbling blocks to biofuel acceptance, the main one being ac-ceptance from the fossil fuel suppliers.”

Fuel monopolyTraditional bioethanol has a blend of 10% ethanol to 90% fossil fuel, with the ethanol used invari-ably being a bio source or synthetic product manufactured by the fossil fuel company. These are unfriendly to the environment and limited in terms of job creation. Apart from that, due to the 99% ethanol needed for a blended product, the specific ethanol is also the most expensive fuel source available.

Without government financing, the project has had numerous challenges to overcome, however Winston and Eugene are confident that the partner-ship between Scania, as the technology investor, Silversands as the producer and Metro City as the consumer will result in a winning formula. Although vocal in its support of green fuel initia-tives, there appears to be minimal government support of such ventures. South Africa will this year host an international Biofuel Summit attended by global green decision-makers, at a stage when the country has only one active project.

“We are the only ongoing biofuel producer in South Africa right now,” says Eugene. This is not from lack of interest; investors are regularly picking up on new fuel trends but many fail to meet expectations. Gas was touted to be a likely contender but came with too many limitations to make it viable. Sweden’s investigations into Compressed Bio Gas, creating methane from sew-age, established that the whole of Stockholm only produces enough raw material for 110 buses.

Nationwide productionOn the other hand, sugar beet’s tremendous flex-ibility makes it very accessible. It can be grown almost anywhere, with the result that a plant can be set up outside every metropole. “Ultimately

every city could run a fleet of ethanol buses,” says Winston, with Eugene agreeing.

“You’d be looking at 500 buses in 12 year replace-ment cycles, which is ample to keep our business lucrative. Best of all, estimates anticipate that we could create two to three jobs for every ethanol vehicle on the road. And there’s the additional advantage of accruing carbon credits to boot,” he concludes.

Winston Muir, Scania, Tel. 011 661 9600, Email. [email protected], Website. www.scania.co.za

GREEN SUPPLY

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Supply Chain Today Feb 2011 �1

A s a major player in the global transport field, TNT’s fleet of delivery vehicles, cargo planes and various buildings play a part as a key contributor to many CO2

emissions. Recognising the responsibility to combat the problem, the company has implemented two campaigns to reduce emissions. “Supply Chain Today” had a word with Mary Mashiane, Corporate Responsibility Manager of TNT Express, SA.

Zero tolerance“Planet Me is aimed at cutting our carbon emis-sions down to zero,” Mary tells us. “This goal will cover every aspect of our business from operating buildings and depots, to the vehicles we use.” The campaign adopts a three-pronged approach incorporating Count Carbon, Code Orange and Choose Orange.

“Count Carbon involves calculating and manag-ing our CO2 performance,” she explains. “Since carbon monitoring is a relatively new area, it has been necessary to implement some novel systems to handle the process.” Following an audit which began as far back as 2004, TNT determined that its vehicles, aircraft and build-ings were the primary contributors to its carbon

When it comes to CO2 emissions, scoring 0% means achiev-ing 100% success. TNT’s Planet Me campaign and Drive Me

challenge aim to help stop pollution by curbing their own emis-sions into the environment.

Ground Zero

Mary Mashiane worked with Kobus Fourie, Operations Director at TNT, to encourage participants in the Drive Me challenge

Management is encouraged to lead by example by adopting environmentally friendly habits, such as driving energy efficient vehicles

Turned to government and aeronautical companies to fast-track research into issues such as fuel consumption

footprint and set about managing these aspects with a view to reducing emissions.

Code OrangeThe actual management process forms part of the second arm of Planet Me, namely Code Orange. “Each area of our three focal points has specific needs,” continues Mary. “Vehicle management involves network optimisation in terms of ra-tionalising loads and reducing milage. Driver behaviour is also a contributing factor and our ‘Drive Me’ challenge is instrumental in instilling effective driving habits with the help of a national competition in which the winner and runner up are entered into TNT’s international challenge. Our fuel choices can play a significant role too, as well as the choice of technologies we make. Finally, we have extended these principles to our subcontractors, our ‘Orange Network’, encour-aging them to adopt similar carbon reduction practices.”

Air travel receives equal attention, with a focus on route optimisation for fuel efficiency. Most importantly, however, TNT has turned to govern-ment and aeronautical companies to fast-track research into issues such as fuel consumption, routing and alternative energy.

The company’s Building Initiative is ambitious and involves some radical steps. Occupying

GREEN SUPPLY

�2 Supply Chain Today Feb 2011

Management is expected to lead by example, making lifestyle choices that will influence staff to do the same

Green buildings play a strong role in the company’s conservation effort

Fleet management optimises fuel consumption

Drivers are involved in TNT’s Planet Me programme through the Drive Me challenge

GREEN SUPPLY

three million square metres of property globally, TNT has identified this area as one in which dramatic improvements can be made. Starting in the Netherlands in 2007 with its first carbon neutral green office, plans are afoot to extend the practice to other divisions. “This is only the start of the benefit,” Mary assures us. “Ultimately we see these offices inspiring staff to adopt these principles into their own lifestyles.”

Choose OrangeStaff education is perhaps where TNT will per-haps make its most significan social contribution with Planet Me. “Employees and their families

create as much CO2 as the company does and we feel that it is important for us to ensure that the benefits of Planet Me reach into their homes,” she smiles. “Management is expected to lead by example, making lifestyle choices that will influence staff to do the same, for instance by driving fuel efficient cars and limiting unneces-sary business travel.

“Our teams around the world have become engaged in numerous initiatives designed to enrich and educate families. Locally we recently collaborated with Johannesburg City Parks and the Gauteng Provincial Government to plant trees along the Albertina Sisulu highway towards OR Tambo Airport. We chose the area because of the high quantities of CO2 produced here daily. By planting trees we aim to offset emissions due to staff air travel from June 2009 to June 2010.”

While Planet Me may set some lofty goals, some might say that it’s better to aim high and fall short than not to make any effort at all. However, it seems that TNT has every intention of meeting project expectations. With any luck other com-panies will take a page out of their book.

Mary Mashiane, TNT, Tel. 011 437 3300, Email. [email protected], Website. www.tnt.com

Supply Chain Today Feb 2011 ��

A ll of this is exacerbated by the fact that good stories are hard to find. Apart from running the gauntlet of educated execs with well-rehearsed PR pitches designed

to deflect any real investigative journalism, there’s

the even more frustrating task of dealing with the uneducated ones who have no idea what they’re talking about.

Organisations offering ‘logistics’ when clearly there isn’t a soul in the company who understands the concept

Beyond the storyWhile this may be an inconvenient obstacle in terms of getting useful information to readers, the real concern lies in the likelihood of these companies affecting unsuspecting clients. Take, for instance, the deluge of organisations offering ‘logistics’ when clearly there isn’t a soul in the company who understands the concept.

A recent call to a company called Gay Transport but listed as a logistics provider yielded the fol-lowing conversation, “I’d like to chat to you about the logistics services you offer,” asks a “Supply Chain” journalist. “We don’t handle logistics, we’re a transport company,” replies Mr X. “I see. Perhaps we could discuss the process involved in managing the transport process for your clients,” continues intrepid journo. “We don’t do transport management. We have trucks,” responds Mr X. “Do you manage these?” journo persists. “No,” X says flatly.

A logistics company that doesn’t handle logistics or manage transport? Contrary to their chosen company name, they didn’t appear to be Gay either. Or even very merry.

This is not an isolated conversation. We speak to people like this all the time. The term ‘logistics’, according to Wikipedia ‘involves the integration of information, transportation, inventory, ware-housing, material handling, and packaging, and occasionally security [and] is a channel of the supply chain which adds the value of time and place utility’.

No partyWe’ve discovered that it is applied to everything from smoking bakkies to crumpled boxes and

Illogical Logistics

The life of a “Supply Chain Today”

writer is not an easy one. Amidst the

glamour of launches and functions,

there’s a lot of trudging through mud

and dodging oil slicks to track down

news and meet deadlines.

WHO EXACTLY DOES WHAT?

�� Supply Chain Today Feb 2011

collapsing chicken crates. If you hand your busi-ness over to one of these ‘specialists’, you’re in for a big surprise. Or a party – particularly not a Third Party Solution, which is another term that’s bandied about with reckless abandon.

How many companies offer warehousing as a ‘3PL service’ purely because they know an oke with some empty floorspace somewhere?

Ask one of these companies how they manage the situation and you’ll be advised that they utilise the latest, cutting-edge IT technology to offer a

WMS solution that integrates seamlessly into their ERP system via LAN, WAN or maybe just a MAN with a speedy flock of carrier pigeons.

What solution?Similarly, the word ‘solution’ is cropping up with increasing frequency. Companies no longer offer products or services; they provide solutions. “We don’t just sell labels, we offer solutions,” says a marketing savvy execu-tive. “Solutions to what?” we ask. Unfortunately for those in the industry, the well-crafted response will have you believing that these particular labels will save time, money, and possibly even the planet, because every solution is also ‘green’.

Worse than green solutions, is the emphasis on ‘service excellence’. We challenge you to find an organisation which doesn’t wax lyrical about their commitment to client satisfac-tion – with the exception of government departments, of course. “Our biggest focus is on building relationships with our clients,” says management, while phones ring unanswered, emails remain unacknowledged and messages are never re-turned. Customer Relationship Management is a lovely concept when the three words are ap-plied to each other. Instead, the Customer waits while the receptionist gossips about Re-lationships and Management is out to lunch.

The customer waits while thereceptionist gossips about relationships and management is out to lunch


www.universal-storage.co.za


Sgt Swanker pigeon Gunpowder II


It’s your problemWhile editors of magazines sometimes have a hard time, we’d like to point out that the real victims here are the businesses that put their faith in these companies. It may not affect you too much if we can’t get breaking news to you because some MD doesn’t answer his phone. But it will certainly be a problem when the same person ignores your repeated requests to explain where your last shipment is.

If it’s any consolation, however, the supply chain field is not the only area which takes liberties with terminology. Not surprisingly, the construction industry has a similar philosophy. Frankly, we’re more than a little concerned that a major player in the building of Gauteng’s new road system is run by someone who loses emails, forgets appointments, can’t remember names and is unable to open Word documents. While this may not be a fair reflection of the company itself, we’ll be avoiding the new flyovers just to be on the safe side.

Loses emails, forgets appointments, can’tremember names and is unable to open Word documents


Market Forum

Onwards and upwardsAs demand for its solutions increases in Southern Africa, business software vendor HansaWorld has moved to new premises to accommodate a growing staff complement. The company officially opened its new offices at The Woodlands in Woodmead, Johannesburg, on 19 January 2011.

With the development of HansaWorld’s brand and reputa-tion, so too does the infrastructural requirements of the vendor increase, Desai notes. “While moving offices is disruptive and downright time-consuming, it is a necessary growing pain. The primary focus for 2011 is to take our African operations to new heights,” she says.

Providing some insights into her plans and vision for the new year, Desai says that from solid foundations estab-lished in the company’s 8 year history in Southern Africa, it intends to grow rapidly. “With a sound and expanding partner base, we will look to aggressively advance the profile of our solutions. That includes attention to channel and end-user marketing, where emphasis will be placed on cost-competitiveness in terms of the complete pack-

New distribution centre gets warehousemanagement systemGlobal supply chain optimisation provider Manhattan As-sociates announced that Samsung Electronics, the global consumer electronics brand, has successfully installed Manhattan Associates’ Warehouse Management System at its new, automated, 55,000 sq. ft. national distribu-tion centre (DC) at the Vorsino industrial park in Kaluga, Russia.

The implementation was conducted as part of a wider sup-ply chain systems re-engineering exercise for Samsung’s Russian subsidiary Samsung Rus, and was led by Samsung Electronics’ IT subsidiary, Samsung SDS. The project also involved a number of other parties including Korean company EXE C&T Co who were contracted by Samsung to oversee, amongst other things, systems integration and implementation and provide general logistics consulting support. Manhattan Associates ‘GeoPartner’ Korus Consult-ing was responsible for designing, configuring and testing Manhattan Associates’ system, for training administrators and key users of the technology and for developing system generated reporting templates.

Finally, whilst Samsung Electronics’ new national distribu-tion centre (NDC) at the Vorsino industrial park in Kaluga was fitted out with various materials handling equipment to automate the facility, end user training was carried out for the Manhattan system and final integration testing between the Manhattan and SAP systems was completed.

After a thorough quality assurance exercise undertaken by the Korean experts from one of the numerous Samsung divisions involved in the project, the warehouse went live with the new system.

Manhattan Associates, Email: [email protected], www.manh.com

age: features and functionality, licensing, implementa-tion timeframes, support and maintenance. Based on all these services, Enterprise stacks up very well against the competition – and especially when total cost of ownership calculations are made.”

In conclusion, Desai says HansaWorld is positioned well for growth in 2011. “The company is stable internation-ally and profitable locally. Above all, we have a proposition which is based on mutual and fair value creation, which is very appealing to local companies. That will form the basis on which we will take HansaWorld forward.”

Swati Desai, HansaWorld SA. Tel: 011 656 6113, Email: [email protected]

A new business process management suiteFlowCentric is very excited about their new product offerings

Now processes built with FlowCentric can be viewed in a Web 2.0 Client. This allows better visual customisation. FlowCentric is also presenting the Execution API. The FlowCentric Execution API offers a valuable customisa-tion option to partners and customers alike

As a FlowCentric customer, you can access your pro-cesses via the Internet, mobile devices, Microsoft Office SharePoint Server, Microsoft Office Outlook and many more Internet enabled technologies, making your pro-cesses available every moment of the day. Stay in the loop. No more delays! Increase your productivity.

FlowCentric’s new BI tool enables better, informed de-cision making through improved visibility into a wide range of business challenges across industries, func-tions and systems. This enables companies to free up their programmers to innovate and create, rather than produce hundreds of reports.

“FlowCentric’s BI tool takes reporting into a new era, if you thought cubes were great - this knocks blocks off anything you have seen before.” Caroline Hein (Parity)

With this dynamic tool you can run reports and create dashboards quickly to detect things like market changes and product sales in real time. This allows your sales-people to immediately respond to new opportunities and improve business performance.

FlowCentric Technologies South Africa. Tel: 012 665 2591, Web: www.flowcentric.com


Market Forum

Nurturing small business and practical skills development The Gauteng Provincial Government, together with Ford Motor Company of Southern Africa (FMCSA) officially opened an incubation centre to establish and nurture black-owned component manufacturing for the South African automotive industry.

Choosing the right ERP solutionImplementing an Enterprise Resource Planning (ERP) solution won’t solve underling company problems, says Immo Böhm, MD of Afresh Consult.

“There are two major decisions to make when looking at ERP’ the first is deciding if you need it, the second is selecting the right system to suit your needs.”

Because of growth and scale it can become difficult to control and manage your business. This can result in you becoming uncompetitive or limiting yourself to being a smaller operator.

ERP requires a new mind-set says Böhm. “That mindset has to run right through the whole busi-ness. The point of ERP is to connect all areas of the business and provide a greater level of control and predictability for all processes.”

The cost of support and the SLA should also be evaluated, along with the cost of upgrades in future. “Choose a system and service provider which can guarantee a timeframe and cost of deployment. Look for one which can upgrade automatically, without having to visit each site to bring the underlying stack up to date first,” adds Böhm .

Always think , Böhm says. “When you’re implementing ERP, you should be anticipating growth for your company. Therefore, seek a system which not only meets immedi-ate requirements, but which offers flexibility to cater for more advanced functionality and which can be easily customized, too.”

Immo Böhm, Afresh Consult. Email [email protected]

A Production Simulator Facility adjacent to the FMCSA assembly plant in Silverton, Pretoria was also officially opened. The newly operational facility is helping FMCSA prepare for the production launch of the next-generation Ford Ranger. In less than a year, the facility will be avail-able to engineering students in the province.

The Gauteng Provincial Government (GPG) committed R50 million for the construction of the Broad Based Black Economic Empowerment (BB-BEE) Supplier Incubation Facility and an additional R15 million for start-up costs for Broad-Based Black Economic Empowerment (BB-BEE) companies. A further R32 million was allocated for training and development programmes for FMCSA employees.

According to FMCSA president and CEO Jeff Nemeth, the BB-BEE initiative and training program is another example of Ford’s commitment to strengthen South Africa’s position as a world class manufacturer and exporter of vehicles and engine components.

Manilal believes that the BB-BEE Supplier Incubation Centre is the opportunity of a lifetime for the entrepre-neurs involved. “The Gauteng Provincial Government has ensured that all the usual risks associated with start-ups have been addressed.

Lloyd Marlowe, Ford Southern Africa. Tel: 012 842 2747, Email: [email protected]

SME scoops industry supplier awardIn a recent ceremony, liner and cover manufacturer Pow-erPlastics beat off some strong competition when they walked away with an award from Pretoria Portland Cement Company Ltd Coastal Division (PPC) for Best Supplier in the Small Enterprise category at an event recognising outstanding service within PPC’s supply chain.

“We are thrilled to have received this accolade from such a large industrial player and feel it is a tremendous achievement for an SME such as PowerPlastics. It is also a good measure of our market position as well as our agility and capacity to win such a large first-time contract with tight timelines and still exceed expectations,” says Caryn Formby, director of PowerPlastics.


Index to Advertisers

APC Storage Solutions SA 22

Apex 24

Cargo Carriers 15

Continental Tyres Outside Back Cover

Fuso 16, 17

Goscor Outside Front Cover, 21

Interrol 12

IQPC 6

Linde 14

Nissan Forklift 10

Paul Steyn 28

Proscan Inside Back Cover

Psion 20

TNT 8

Toyota Forklift Inside Front Cover

Universal Storage Systems 34

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Market Forum

On the Move

Denise Howard has been appointed as Sales Manager at TNT Express for the Durban and Port Elizabeth re-gions.

Lee-Ann Colyn has been appointed as Sales Manager at TNT Express in the Western Cape office.

Denise HowardLee-Ann Colyn

“These awards pay tribute to the fact that our suppliers are critical to our own success in delivering superior products. It is a rigorous and highly competitive environment out there and we need to be able to depend on our suppliers. Excellent relationships within a trusted network go a long way towards survival in this economic climate and Pow-erPlastics is an exemplary example of this,” says Ginger Singh, Area Manager for PPC.

“What particularly impressed us was how PowerPlastics, despite being a SME, didn’t shy away from this massive order. They stared it in the eye and if they were intimidated, they certainly didn’t show it!” says Singh.

Specialising in the manufacturer of covers and liners, Pow-erPlastics’ production facility is geared to both long- and short-term production runs. Other covers and liners include fumigation sheets, container liners for goods in transit, dam liners, branded scaffold sheeting and thermal covers.

Power Plastics. www.containerliners.co.za

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