warehousing - now media · public warehousing – the pros and cons according to a recent american...
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... promoting a systems-based approach
Warehousing packaging and handling
SPECIAL fEAturE
fEBruArY 2009frEIGHt & trADING WEEKLY
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FEBRUARY 2009 | 1
Editor Joy OrlekConsulting Editor Alan PeatContributors Tersia Booyzen Liesl Venter Advertising Carmel Levinrad (Manager)
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Page 2Public versus private warehousingThe the pros and cons
Page 8TrainingWarehouse management a part of Sapics’ portfolio
Page 10InsuranceEquipment damaged in storage raises liability issues
Page 12Environmental issues Playing a key role in packaging trends
Page 13Systems-based approachHelping to cut costs
Page 15Managing costs A key element in the current climate
Page 16TechnologyWi-Fi and G 3 provide cutting edge
Now more than ever warehousing, handling and packaging specialists are taking a customer-focused approach – and despite the tighter economic conditions, many are already gearing up for better times ahead.
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2 | February 2009
BY Alan Peat
In the past three decades, traditional warehousing has declined – first of all with the start of the almost bus-stop
regularity of containerised shipping.but it was the gradual introduction of
just-in-time (JIT) techniques – designed to improve the return on investment of a business by reducing in-process inventory – that really swung the change.
It promoted the delivery of product directly from the factory to the retail merchant, or from parts manufacturers directly to a large scale factory such as an automobile assembly plant, without the use of warehouses.
However, over the same time period, and with the gradual implementation of offshore outsourcing and offshoring, the distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably. This bred the demand for national or regional warehouses in any specific supply chain for a given range of products.
but, despite this evolution, one basic question has remained the same since time immemorial. Does a company have its own warehouse(s); rent space in a third-party owned facility; or contract a large portion of, or a whole warehouse, and third-party operating staff?
This means that the warehousing industry comprises three types of premises: public warehousing; private warehousing; and contract warehousing.
What is public warehousing? It is a warehouse owned and operated by a third-party; charging in particular for type of services used; and mainly for short-term usage.
Private warehousing, also known as proprietary warehousing, is operated as a division within a company. It is either on-site (at a central location or dispersed throughout manufacturing facilities) or off-site (satellite facilities located close to marketing areas to store excess on-site inventory and to serve as distribution centre for finished goods).
It requires substantial corporate fixed investment in land, building, and equipment.
Contract warehousing, on the other hand, is a variation of public warehousing.
It is a long-term contract and/or services in a warehouse owned and operated by a third party – offering customised services/space over a long term. It is also a trade-off between location flexibility (for assured space over the contract period), and a price that is usually lower than standard warehousing rates. Contacts can either be arranged for an entire building or for a defined, fixed portion of square-metre or cubic-metre space.
when examining your warehousing optionsConsider the benefits
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Offshore outsourcing has bred demand for national or regional warehouses in any specific supply chain for a given range of products.
February 2009 | 3
Public warehousing – the pros and consaccording to a recent american study compiled from a consensus of trade publications by four uS warehouse specialists, the advantages are:• Zero capital investment in
warehousing: • For companies that are expanding,
public warehousing provides economical and practical means to reach out to new markets;
• It allows users to adjust for seasonality, renting as much warehousing space as needed during the peak season – and with the distinct advantage of allowing storage costs to vary directly with volume.
• It is reduced risk and low opportunity cost – with no commitment of funds in public warehousing and the user firm being able to switch to another facility in a short period of time, often within 30-days.
• a major advantage to justify perhaps half of all public warehousing today is that it is possible – since they handle the requirements of a number of firms – that their volume allows them to pay consolidated freight rates and not the much higher freight costs that result from shipping small quantities at
premium rates.• The user gains access to special
features and services: Most can offer specialised services – like broken-case handling, packaging services for manufacturer products for shipping, breakbulk services, and freight consolidation services. Some examples of special features are: temperature-controlled, cool and cold storage; crane capabilities; ultraclean segregated area; guard service around the clock; attractive facilities and amenities; and dedicated docking areas for special customers;
• Greater flexibility for change – as public warehousing is only a short-term contract, and thus, short-term commitments.
• Tax advantages;• When a company uses a public
warehouse, it knows how much exactly is spent on storage and handling costs since the monthly bill displays all necessary information.
Disadvantages, on the other hand, can be: Communication problems with incompatible computer terminals and systems; lack of specialised services; or space may not be available.
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Private warehousing equals greater controlThe advantages are: • Degree of control – the owner has direct
control of inventory with associated cost control;
• With more control, there is greater flexibility of designing and operating the warehouse to suit the needs of its customers and the characteristics of the products;
• Less costly in the long-term – where the operating cost can be 15%-to-25% lower if the company achieves sufficient throughput or utilisation;
• better use of human resources;• Tax benefits – with depreciation
allowances on buildings and equipment reducing tax payable;
Its disadvantages to the user are: • Lack of flexibility;• High opportunity cost (high risk);
• High start-up cost: Firms have to generate enough
capital to build or buy a warehouse. a warehouse is often a long, risky investment. Moreover, there is cost of hiring and training of employees, and the purchase of material handling equipment.
The high cost involved may force the company to seriously consider public warehousing as a better option.
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[Sources: Douglas M. Lambert, Fundamentals of Logistics Management, McGraw/Hill Publication (1998); Ernst F. Bolten, Managing Time and Space in the modern warehouse, New York (1997); Jenkins, Creed H., Complete guide to modern warehouse management, Prentice Hall (1990); Ken Ackerman, Warehousing profitably, Ackerman’s publication (1994); Ken Ackerman, Practical Handbook of Warehousing, London: Chapman & Hall (1997).]
4 | February 2009
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To promote your services contact CARMEL LEVINRAD on Tel:+27 11 214 7303
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BY Tersia Booyzen
“Despite all the negative economic predictions we have picked up quite a lot of imports and we are
upbeat about this year. In South africa guys like Trevor Manuel made the right calls at the right time and this is a storm we will weather,” says Clinton Phillips, general manager of Durban-based Summit Warehousing.
He believes that raw material is cheaper to import than buy in South africa and, while there has been a downward trend in the mining sector, there has been an upturn in other areas such as electrical transformers and other cargo for eskom projects.
“Our clients’ feedback has also not been all doom and gloom. Some exports are doubling although some companies are talking about retrenchments. The companies that are well-rooted will keep growing and do well.”
Phillips believes the next six to ten months may be difficult. “but it will give us time to consolidate our operations and gear up for the expected inflow.
Summit is currently spending approximately r5 million on expansion at our warehouse in Durban. We are getting better organised in terms of vehicle flow and the like.
“We have had to do the extensions because of the business coming our way and will make sure that in 2009 we help our clients to grow their businesses too,” Phillips told FTW.
Well-rooted exporters are doubling volumes
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February 2009 | 5
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BY Ed Richardson
As warehouses are constantly expanded to accommodate growing volumes of cargo,
commentators are starting to ask the interesting question of when the world
container industry will “mature”.In short, when will the world have all
the containers, vessels, and port facilities it needs.
While the industry is presently in the doldrums, there is little doubt that it will recover as world trade rebounds.
and it is world trade that will set the limits for containerisation.
Commentators point out that containerisation is following the typical “S” curve of a product life-cycle.
There was practically no investment up to the 1970s as containers were a rarity, with the impetus coming from the first container ships in the 1960s.
between 1970 and 1990 the freight industry “adopted” containers big time – with containerised traffic trebling to over 500 million Teus between the 1990s and the early part of the new millennium.
Containerisation is now at the point where it affects manufacturing strategies, and has helped fuel the economies of China and India.
Containerisation has also moved inland, and is expected to face “technical” limits, where economies of scale begin to limit further expansion.
The question no-one is brave enough to answer is just when this limit will be reached.
When will container industry mature?
World trade will set the limits for containerisation.
6 | February 2009
BY Joy Orlek
Intermodal inland haulage operator Cargo Movers Kaserne Container Depot (CMKCD) provides a lot more than
cartage and storage.“We use the depot as a staging facility for
final delivery,” director Kerwin Naidoo told FTW. “Several major importers and exporters bring in large numbers of containers which they store in the depot. We then arrange for delivery as and when their warehouse calls for them.
“We offer our customers leniency in terms of storing containers and a free period for certain shippers. We also do a lot of empty storage for shipping line customers as well as maintenance and repairs.”
and according to Naidoo, demand for empty storage has been picking up.
“Lately there seems to have been a shortage of empties in Johannesburg – in the past two days we have moved 1600 empties from the coast to Gauteng.”
The current economic downturn is clearly a factor, with a significant drop in the number of imports.
according to information relayed to Naidoo by a customer, in one province in
China160 000 companies closed down in one month. “That market had a major impact on South africa.”
Naidoo believes the industry is already responding to the impact of the economic downturn.
“road hauliers are being affected drastically – not so much on exports but on imports.
“and because of the shrinking volumes, some operators are dropping rates to ridiculous levels.”
FTW understands that some hauliers are moving cargo on the Durban–Johannesburg run for as little as r800 – compared to the r2 500 average before the downturn.
“a number of transport companies have also decided to shut up shop because they’re running at a loss. equipment is being sold for next to nothing – but it’s unlikely that people will buy up equipment now so even that industry will take a big knock.”
according to Naidoo, TFr is putting together a plan to attract more container traffic – and rail contractors are waiting for their new contracts. While tariffs must increase, the level of the increase is likely to be less steep than last year, in his view.
He believes that flexibility and service
are what provide competitive edge in a tight market.
“We are very flexible in terms of operating hours. Initially we were a 24-hour depot but for security reasons we reduced our opening times. We currently operate until 8-9pm in the evening, servicing vehicles and doing pre-loads so that we can forward plan.
“We’ve also beefed up our IT programme which impacts positively on security and information flow.
“Our objective is to provide a one-stop shop. We can stage containers, assist in port release and then arrange for cartage and delivery to final destination.
“Whatever the customer’s need we will sit down with him and find a solution.”
Warehousing is one element of CMKCD's one-stop solutionKaserne depot a staging facility for final delivery
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Kerwin Naidoo ... ‘Whatever the customer's need, we will sit down with him and find a solution.’
February 2009 | 7
BY Ed Richardson
Port operators and governments have been urged to continue investing in container handling infrastructure,
despite the downturn.erich Heymann of Deutsche bank
research says that, despite the current economic slowdown, container shipping will continue to grow. The forecast is seven to eight per cent a year to 2015.
Deutsche bank expects the degree of containerisation to continue to rise, particularly in eastern europe, Latin america and asia. Short sea shipping is also on the rise in europe.
Heymann points out that “container ports and terminals have been one bottleneck for the expansion of the industry.”
The current downturn will see capacity utilisation come down to “normal” levels, with the current crisis affecting shipping companies more than harbours.
Heymann says there needs to be investment in both port and inland container-handling facilities to prepare for the next upturn in the world economy.
South africa is continuing with its major infrastructural investment in the country’s ports.
Transnet Port Terminals announced last year that it would be investing r10.3-billion in port infrastructure over a period of five years.
Some expenditure – such as that at the port of Ngqura – has been delayed, but the port is still due to open in October this year.
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Beverage logistics specialists JF Hillebrand are finding increasing support for their VinLiner concept – an environmentally friendly option for the transport of wine.
The wine is packed in regular containers lined with VinLiner, which protects liquid from temperature fluctuations, contamination risks and other harmful effects of long
distance transport. And shipping the beverage in bulk results in significant savings in carbon emissions.
One container of bulk wine can hold some 24 000 litres of wine. To ship the same quantity of bottled wine requires over two containers – doubling costs and carbon emissions.
Wine takes the ‘green’ route
8 | FEBRUARY 2009
With the skills deficit widely recognised as one of the greatest challenges facing the
supply chain profession, Sapics (The Association for Operations Management of Southern Africa) is committed to making its comprehensive range of education offerings accessible to individuals from shop floor to executive level, in companies across the spectrum of African industry, says Sapics president Ken Titmus.
In the field of warehousing, Sapics offers an accredited warehouse management programme and is also currently developing a new learnership programme that will include an elective focused on warehousing, as well as others devoted to planning, inventory control and manufacturing control.
The new “Introduction to Supply Chain Operations” learnership that is currently being created by Sapics will be a basic-level addition to the association’s education offerings and will be targeted at NQD level 3, says Titmuss.
“Lower-level operations training is one
area that requires particular attention, and it is at this level that the new education offering will be aimed.”
Sapics’ accredited “Warehouse Management in Practice” programme provides graduates with an understanding of the objectives, principles and techniques of warehouse management,
he added. “It provides an understanding of warehousing in sufficient detail for these principles and techniques to be applied in the workplace to improve a company’s profit and customer service,” he told FTW. “Among other elements, the programme examines the various transactions driving a warehouse on a daily basis, and gives graduates the skills required to plan an effective, economical warehouse layout, plan the effective
routing of vehicles and understand the principles behind effective cycle counting.”
Sapics currently offers a range of training programmes in the fields of manufacturing, logistics and distribution, as well as materials management. The association is also the South African custodian of two internationally recognised certifications – the APICS CPIM (Certified in Production and Inventory Management) and CSCP (Certified Supply Chain Professional). “The “Fundamentals of Materials and Operations Management” provides a strong educational base from which to approach these certifications. These programmes are offered by Sapics in association with its American associate, Apics,” he said.
Sapics’ affiliation to Apics – The Association for Operations Management in the United States – enables Sapics members to participate in international conferences and exhibitions.
The organisation’s education programmes are offered throughout
South Africa and as far afield as Namibia, Zambia, Nigeria and Tanzania, through a growing network of Authorised Education Providers (AEPs).
Warehouse managementa part of Sapics’ comprehensive training options
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Ken Titmus ... ‘Lower-level operations training is one area that requires particular attention.’
‘Providing graduates with an understanding of the objectives, principles and techniques of warehouse management.’
FEBRUARY 2009 | 9
BY Joy Orlek
As the global crunch makes its impact on transport volumes, there is one commodity that
appears to be bucking the trend.Tobacco warehousing specialist
Aquarius Shipping recorded a spectacular year last year and expects more of the same for the year ahead.
The company’s vast warehousing facilities comprise 3 500m2 in Durban and a whopping 29 500 in Johannesburg.
It’s currently at full capacity, says director Robert Poverello, and all indications are that volumes will continue at the same level for the year ahead. Aquarius diversified operations last year, marketing excess capacity in the tobacco off-season from March to July. The company added cotton to its product base during this period, but will stick to tobacco as its number one priority, says Poverello.
“It doesn’t look as if there will be an off-season this year,” Poverello told FTW. “Malawi had a record crop in 2008, and all indications are that it’s heading in the same direction this year.”
In addition, regional port problems resulted in a large volume being redirected through Durban – a
further boost to the company’s local warehousing operation.
Aquarius has steadily added capacity over the past few years - three years ago its facilities provided 6 000m2 of space, two years ago it was up to 15 000, with capacity almost doubled last year to 29 500m2.
With Aquarius Shipping having notched up 11 years of experience in the tobacco industry, and the directors Darrell Goodwin, Rod Goncalves, Brian Fernandes and Poverello offering in excess of 20 years’experience in the tobacco market, the company recently extended its operation globally and opened offices in the UK and Antwerp. Headed up by new director, Brian Fernandes, the venture has already proved successful, says Poverello.
The Antwerp warehousing base acts as a hub for most of Europe as Durban serves as a hub for Africa.
Further growth into Brazil and India is currently being explored, Poverello told FTW, adding that the loyal customer base is what has made such a huge impact on the success of Aquarius Shipping over the past 11 years.
Main export markets include China, Korea, Turkey, the Philippines, Egypt, Libya, Western and Eastern Europe and the US.
Tobacco specialist records steady volume growth
Rod Goncalves, Darrell Goodwin and Robert Poverello in front ... good volumes expected to continue.
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BY Liesl Venter
When in doubt – insure!That is the advice from
lawyers and industry experts when it comes to storage and transport of cargo.
According to Shane Dwyer, partner in maritime law firm Shepstone & Wiley, the security for consumers when storing goods in warehouses or moving their cargo lies in insuring their goods well.
“It is very important to ensure you have the best possible coverage – even if it means paying more,” says Dwyer. “Do not take risks and do not be too cautious but rather see to it that you have the best possible insurance to cover any eventuality.”
This follows a recent incident involving a former Cape Town resident who found his cargo badly damaged on arrival at his new home in Windhoek after months in storage.
“The goods went into storage in February as we were going to emigrate to Australia. We then decided to move to Windhoek instead and contracted a haulier to collect our goods at the warehouse and deliver to us. Upon delivery I found my metal and wood-working machinery had got wet and had severe rust, while it appeared as if the wood saw and planer had been extensively used,” Dean van Tonder told FTW.
The warehouse owner can verify that when the goods left his premises for transportation to Windhoek, inventories showed there was no damage to the goods while the haulier has also denied any damage occurred, leaving Van
Tonder to rely on his insurance company.
Says Dwyer: “The reality in South Africa is that there is little protection for the consumer but that is set to change as new legislation comes into effect. Warehouse owners have been saying ‘store at your own risk’ while transporters say ‘transport at your own risk’, effectively contracting themselves out of any liability thanks to their terms and conditions.”
Dwyer says it is all about sharing the risk. “New legislation is going to force the warehouse owner, storage company and transporter to share the risk with the consumer and take responsibility for their involvement in the process.”
Comparing it to the shipping industry, where shipowners originally also had no responsibility, insuring is the only safe option.
“In the shipping industry there was much the same problem but legislation was put in place to ensure that a shipowner cannot just contract himself out of any liability and they now have an obligation to provide safe carriage. Obviously in that he has several defences such as insufficient packaging or bad weather that can be used if the cargo is damaged, but essentially it is
Equipment damaged in storageraises issues of warehouse liabilityRecent incident illustrates need for insurance
Clients who refuse transit insurance must accept full liability for any damages
to their goods as most hauliers in South Africa contract out of liability.
According to hauliers, their terms and conditions of carriage are of such a nature that they contract out of liability and customers should rely on their insurance.
FTW reader Dean van Tonder found himself in such a predicament after various woodworking goods were delivered damaged to his home in Windhoek after several months in storage.
According to a major transporter
in the country, it is impossible to expect the haulier to accept liability.
“We cannot, ourselves, carry liability for damage or loss as the replacement value of a household is invariably many times greater than the price charged for the removal,” said one haulier, who preferred to remain anonymous. “We therefore decline any liability with regard to damages or losses. We offer transit insurance that can be used to cover damages.”
Legal experts advise taking insurance from the company when offered as this offers the only security under current consumer legislation.
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a sharing of the risk. Liability now lies with all the parties involved. Using these new conventions, a shipowner is obligated to move cargo safely and takes responsibility for that.”
According to Van Tonder, this has been one of his major problems as he claims no-one wants to take responsibility for his damaged machinery. “There is a clear paper trail of all the movements of this equipment, so somebody must be accountable for this and accept responsibility,” he says.
One warehouse owner, who preferred to remain anonymous, said cargo naturally deteriorated in storage. “Storing at the coast will inevitably mean there is oxidation and levels of
rust will be found. Our terms and conditions take all of this into account and we can’t and won’t carry the risk of damage while in storage.”
Most warehouse owners agree there
is always a degree of risk in long-term shortage and definitely an inherent risk in moving cargo – a risk that should be carried by the customer and his insurance.
“There is no morality involved here – the reality is the customer or consumer according to the law carries the risk and the standard trading conditions do contract out a large chunk of liability for the company involved. For that reason insuring for catastrophe is crucial,” says Dwyer.
Equipment damaged in storageraises issues of warehouse liabilityRecent incident illustrates need for insurance
The Consumer Protection Bill passed by Parliament late last year is set to change South Africa’s business
landscape forever.With this bill, set to take effect by late
2010, no company – regardless of the industry – will be able to contract out of liability.
Based on legislation for the consumer in countries such as the United Kingdom and the United States, the Consumer Protection Bill will obligate a business to take responsibility for the service it offers and trading conditions will have to be adapted to ensure this.
Experts agree the bill will make South African consumers amongst the safest in the world.
According to lawyer Peter Cumberlidge, the Bill makes way for full disclosure by businesses and all advertising material will have to be 100% accurate. “Notices, waivers
or terms and conditions of trading will no longer absolve the business owner from responsibility.”
According to the Department of Trade and Industry, the aim of the bill is to ensure a fair and accessible marketplace to consumers, and broadly speaking the bill imposes obligations on any person who supplies goods and services in the ordinary course of business.
Defined as a rights-based piece of legislation, it will also impact on the way companies speak to their customers.
It is clear that all agreements for consumers must be in plain language and set out an itemised breakdown of the consumer’s financial obligations under the agreement so that any notice about limiting a company’s liability or indemnifying a company must be drawn to the attention of the consumer and be in plain language.
Consumer Bill will obligate business to take responsibility
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Some reasons why saving on insurance is not a prudent option.
12 | FEBRUARY 2009
BY Tersia Booyzen
“The main purpose of packaging is to preserve and protect the content,” says Andrew
Marthinusen, executive director of the Packaging Council of South Africa (Pacsa). “Therefore, when changes to packaging are considered, the entire supply chain must be taken into consideration; including handling and transportation.”
Independent research has shown that without the benefits of packaging, refrigeration and transport, the losses between grower and consumers are as much as 44% in the developing world compared with little as 2% in the developed world with those facilities.
“The packaging industry’s biggest challenge is to retain its core purpose but, in line with all industries, it needs to review all its production processes to protect the environment by avoiding unnecessary waste – particularly in the area of energy and water.
“Dealing specifically with packaging, designers need to consider returnable packaging, reduce packaging mass wherever possible and avoid obvious
over-packaging. To help solve the problem designers should utilise recycled material in packaging. This will hugely reduce the carbon footprint of the pack compared to a virgin pack,” Marthinusen explains.
“We should not only measure companies in terms of the final waste that is produced. The packaging industry is not doing a bad job and about 41% of the the entire packaging and paper industry is recycled through voluntary initiatives. One of the biggest problems we have to contend with is the use of multilayers consisting of different materials during the design and manufacturing of packaging which can make recycling impossible.
“The current economic fireball that has hit the world has put the recycling industry under tremendous pressure since the prices of virgin raw materials have collapsed thus making some recyclable sectors unviable. This is a worldwide problem that in the short term may set back the entire industry,” Marthinusen concludes.
Environmental issues
A fine line ... the perishable industry along with others needs to reduce packaging mass and avoid obvious over-packaging.
play key role in packaging trends
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WORLD WIDE FOOTPRINT
No cargo is too big to bear
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FEBRUARY 2009 | 13
BY Tersia Booyzen
Asystems-based approach to unit load design can save between 8% and 18% in avoidable costs,
according to Dr Marshall White, a professor emeritus at Virginia Tech.
He notes that pallets, packaging materials, materials handling systems and transportation equipment don’t exist in a vacuum. The design of each of those components affects the performance of the others as a palletised load moves through the supply chain from a factory to a distribution centre and on to the end customer for that load.
“Most companies take a component-based approach to design with three different communities involved. One is responsible for the packaging, another is responsible for the pallet and a third is responsible for the warehouse design and the unit load handling equipment. Each of those groups is under pressure to reduce its costs, and they do that without communicating with the other design community,” White says.
He explains that the team designing the conveyor system for a new warehouse may increase the spacing between rollers to save on the cost of
the system. While their numbers look good, the pallet now needs to be built from more expensive deck boards to carry the weight of the load across a wider span without buckling. In the long run it may make more economic sense for the enterprise to install a more expensive conveyor and save big on pallets, stretch wrap and cartons.
“As long as conveyors, pallets, stretch wrap and cartons are designed and purchased by different teams with different bonus incentives, it’s hard to get that message across. Until we change the business model so that these communities have an incentive to work together, it’s very difficult to do because everyone operates in their own very competitive environment.
“The owner of the supply chain must provide that forum and give instruction for those communities to work together,” White emphasises.
Cut costs with a systems-based approach to unit load design
‘Pallets, packaging materials, materials handling systems and transportation equipment don’t exist in a vacuum.’
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Branches: Gauteng / Durban / Port Elizabeth / Cape TownTel: 011 824 4144/5 Fax: 011 824 4148
Email: [email protected]
14 | FEBRUARY 2009
BY Tersia Booyzen
“Our new 10 000 m² warehouse in Germiston is ideally designed to support our
clients and to complement our existing long-haul transportation business,” says Arnold Reddy, director of Reddy Cargo Services.
“There is a trend for manufacturers to outsource distribution and to focus on their core business in order to reduce overheads. Along with the warehousing facilities, we have local distribution fleets in Durban and Johannesburg as well as our long-haul fleet which together provide one-stop landside logistics to clients,” says Reddy.
“We take on a lot more responsibility for our clients by offering the warehouse facilities but we believe it is worth it. It won’t necessarily lead to more transport offerings but it makes it much easier and more cost-effective for clients and also for us as trucks have less downtime when they are delivering from warehouse to warehouse.”
The company is keen to own its
own warehouse in Durban, according to Reddy. “We are currently renting from Transnet, but there is simply no property available due to the congestion. And if property becomes available it is so expensive that it becomes uneconomical if you want to develop it and remain competitive in the market.”
The warehouse was due to be completed a year ago when economic conditions were better. “But we don’t regret building it,” said Reddy. “The timing may not be optimal but we c an sustain the business with our current volumes.
“We are retaining the old 2 000 m² premises in addition to the new warehouse and will mainly use that for hazchems. There are very few people who are hazchem certified so we can get that business without much competition,” Reddy added.
New warehouseprovides one-stop landside logistics
Reddy Cargo Services’ 10 000 m² warehouse in Germiston ... leaving clients to focus on their core business. Photo: Tijana Huysamen.
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Offices: Cape Town Durban Port Elizabeth United Kingdom
FEBRUARY 2009 | 15
BY Liesl Venter
Adapting to their customers’ requirements and needs is just one of the competitive advantages of
Stobel Deliveries.The warehousing and distribution
specialists have been in business since 1988.
“With over 20 years of experience in the chemical logistics industry, it is important for us to ensure our clients’ needs are met at all times,” said Stobel’s Dale Oliver. “We have a very direct and hands-on approach from our management side and that allows us to be flexible and meet our clients’ requirements at any time.”
With primary services being ware–housing, distribution, clearing and forwarding, Stobel’s strength is in the vast knowledge they have of the chemical industry.
“We are fully hazchem compliant and consider ourselves experts when it comes to the management of hazardous and dangerous goods. Our senior management also boasts extensive experience in the chemical industry.”
The company is fully compliant with the current legislation regarding the handling and transportation of hazardous
goods. “It is imperative that business is done responsibly at Stobel,” says Oliver.
“We became a member of Responsible Care, an international organisation that brings together companies that are committed to conducting business in an
ethical and socially responsible manner, in 2006,” he said.
As the world faces one of its toughest economic times, the Stobel team remains committed to not just being responsible but also ensuring their business remains
affordable, he added.“It is one of the challenges we face in
the next year to ensure that we manage and reduce our operating costs effectively and pass these benefits onto our clients in light of the current global recession.”
Managing operating costs is key in current economic downturn
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The Stobel warehouse ... fully hazchem compliant. Photo: Tijana Huysamen.
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Unpacking / packing of import / export cargoCustoms unpack / repackDry Bulk Container LoadingStrapping, palletizing and lashing
16 | FEBRUARY 2009
By Tersia Booyzen
“The latest addition to our management information technology systems is the
bulk and pick and pack facility for the distribution of cargo, opening up a new avenue of business particularly in the logistics supply chain,” says Pedro Da Costa, MD of CargoXchange.
“All of this is done with Wi-Fi or 3G remote hand-held scanners scanning product codes and then allowing mix and match packing for delivery with final manifests to clients,” he told FTW.
“Using remote Wi-Fi or 3G hand-held scanners for intakes / despatches / pick
/ allocation lists and stock taking means the system is truly cutting edge.”
The company offers remote assistance, interfacing live with the client and solving 90% of all queries,
without the client having to wait for onsite assistance. “Affordable billings based on modules are customised according to client needs,” adds Michael Henning, CEO of Prime-X business & account management services.
CargoXchange is a service provider supplying management information technology systems exclusive to the warehouse and logistics industry.
The system facilitates the pre-capture of expected cargo from manifests or packing specifications, preferably electronically. These can be manually captured or imported into the system, alerting the warehouse to space needed.
Upon intake of cargo, system reports will analyse expected versus actual stock, with immediate discrepancies being emailed to all concerned automatically.
Clients are encouraged to log onto the warehouse management system via
the internet to monitor stock and create pick lists, ensuring the correct cargo is always delivered. Cargo picked / allocated can only then be loaded onto a vehicle, saving offloading and return costs, says Henning.
CargoXchange hosts all software and operating systems required, with daily automatic backups, allowing clients to get on with their daily work.
“A joint venture with partners Prime-X business & account management services, who have extensive experience in the marketing of service and systems for the logistics industry sets the scene for an aggressive marketing campaign in 2009,” Henning concludes.
Wi-fi and G3provide cutting edge for warehousing and logistics
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New warehouse saves clients up to 17%In response to customer demand, DJM Global Logistics has beefed up its facilities providing a 10 000 m² warehouse in Industries West, Germiston.
“The new warehouse is divided into four phases in order to efficiently
manage general cargo, dangerous cargo and perishable cargo,” says Duran Rajpal who looks after DJM Global Logistics’ sales, marketing, warehousing and distribution.
“The provision of the storage space is in response to demand from many
of our cross-border clients who require these services. In the past they had to use third parties, which resulted in much higher expenses,” he told FTW.
“By offering all these services in-house we are able to save our clients up to 17% on their expenses
and a ‘sense of ease’ knowing that their cargo is in more than capable hands.
“At DJM our objective is to deliver fast and efficient service and to save additional handling costs incurred prior to transportation,” Rajpal added.
‘Upon intake of cargo, system reports will analyse expected versus actual stock.’
FEBRUARY 2009 | 17
Cost-saving advice is part and parcel of the service provided by packaging specialists Cape
Crating – in evidence in a recent project involving a 23-ton machine.
“It was wrapped in barrier foil and crated but the lifting was on the machine as opposed to the crate,” Cape Crating’s Owen Bottomley explained.
“This option reduces the cost of
the crate as the base is not required to be structurally suitable for lifting it. The slings were purpose-made and remain attached and travel with the cargo which reduces the risk profile as the cargo is moved along its journey.
“Cost-saving advice is something in which we take pride at Cape Crating,” he said.
Cost-saving advice is part of the deal
In the movement of this 23-ton machine, the lifting was on the machine rather than the crate, reducing costs.
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18 | FEBRUARY 2009
BY Liesl Venter
C ape Town-based Edgin Logistic Solutions recently opened new covered storage facilities at
Culemborg adding 6 600m2 to its ware-housing portfolio.
“Situated within 2km of the container terminal, this new warehouse is ideally suited to the stuffing and de-stuffing of containers and will be kept solely for the storage and handling of clean, dust-free cargoes,” company director Dave Johnson told FTW.
“It is our ability to utilise dedicated warehouse spaces for different cargoes that allows Edgin to handle and store just about everything – from large bulk shipments of fertiliser or grains to smaller containerised shipments of specialised commodities or products.”
Focusing on the provision of a variety of logistical and warehousing solutions, custom-made to suit each individual client’s needs, the company was founded in 2004.
“We realised that there was a need for a logistics provider that served the client’s needs in a cost-effective, professional manner on a 24-hour basis,” says Johnson.
Since then the company has made
great strides.And for Johnson and his team there is
much promise in 2009. “While everyone in the industry is hurting because of the current slump in commodity movement, we know that the market can’t remain this way and will improve. Rather than sit around lamenting the slowdown, we busy ourselves planning for the upswing,” he says.
There are many challenges already in this industry, says Johnson, with
the biggest being the ability to deliver on promises in a logistical chain over which you have no practical control. “The long queues and waiting times at the ports and empty container depots continue to plague the whole industry. We combat this by extending our full storage yard hours.” The company operates from 06:00 to 22:00 Monday to Friday, 07:00 to 16:30 on Saturdays, and on Sundays based on demand.
“In this way our clients can take advantage of quiet periods at the depots and container terminals.”
Being close to the port is a big advantage, in Johnson’s view. “With 24 000m2 of covered warehousing in Cape Town, and a 6 500m2 container yard conveniently situated at Culemborg, 1km from the Port of Cape Town with easy access to the N1 and N2, we can effectively see our clients’ transport costs reduced.”
CT facility saves costs thanks to proximity to terminal
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24 hour maintenance facility Parking for 60 vehicles
PAUL BOTHA (MD) [email protected]: 011 866 4400 F: 011 866 4464
JOHANNESBURG DEPOTT: 011 908 6067 F: 011 908 0583
HARRISMITH DEPOTT: 058 622 1018 F: 058 622 2113
DURBAN DEPOTT: 031 465 5574 F: 031 465 3427
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Tel: +27 (31) 465 8310 Fax: +27 (31) 465 8329E-mail: [email protected] www.roheksa.co.zaFTW4045
New Culemborg warehouse bolsters covered storage portfolio
Edgin's warehousing facility in the foreground (right) ... in close proximity to the port.
FEBRUARY 2009 | 19
A new warehousing and office complex has opened its doors in Ladysmith situated on 19 hectares in
the heart of city’s industrial precinct. This follows the purchase of the Frame
Textile Complex, a well-known landmark of the town, by KZN property developer Ducatus Properties.
“This distribution and warehousing hub is located in the centre of all major transportation routes and is accessible to all articulared transport vehicles,” Ducatus spokesman Paul Bester told FTW.
“As the new owners it is our intention to develop the complex into a first class multiplex where manufacturing, warehousing and distribution of goods and services can take place,” he said. “With a
unique current tenant blend that includes Dunlop Tyres, Frame Textiles, Zultrans and GNG Pine Products to name a few, our vision is to strengthen current tenant relations as well as build relations with many new tenants.”
The facility comprises approximately 100 000m² of warehouse and office accommodation as well parking facilities in a securely fenced-off perimeter, 24-hour security access control and a fully operational fire sprinkler system throughout the site.
According to Ducatus, which is marketing affordable rates, it is suitable for tenants of all sizes – from those starting new business ventures to large multi-nationals looking to expand their operations.
The latest acquisition for Cape Crating is a crane truck, an MAN 26-280 rig fitted with a 29-ton
capacity Pilfinger crane.“This will be added to our existing
fleet of vehicles and our range of services,” partner Owen Bottomley told FTW, “which includes crating, packing, warehousing, container loading,
palletising and local deliveries in the Cape Town area.”
Cape Crating also has a hazardous cargo division; secures cargo on flat rack containers; and offers an international service in project packing.
The company will use the crane truck for its own services as well as hiring it out to other users.
Designing and constructing optimised industrial buildings is the theme of a one-day
seminar to be held countrywide in April.
Organised by the Chartered Institute of Logistics and Transport SA (Ciltsa), the seminars will be presented by international expert Mark Ashton, director of Ashton Smith Associates in the UK.
“Three international trends are dominating the current design and
construction of efficient warehouses and related infrastructure,” says Ashton. These include the emergence of separate distribution centres, determined solely by the product and storage requirements, the introduction of single envelope freezer facilities and internet shopping.
The seminars will be held in Johannesburg on April 21, Durban April 22 and Cape Town April 23.
Further information is available from [email protected]
New warehousing complex opens in Ladysmith
Cape Crating adds crane truck
Warehousing design on show at nation-wide seminars
The smart choice, contact MOSES MABOI
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Johannesburg Tel: +27 (0) 11 315-8125 Fax: +27 (0) 11 315-7786Durban Tel: +27 (0) 31 368-7224 Fax: +27 (0) 31 368-7225Cape Town Tel: +27 (0) 21 934-2033 Fax: +27 (0) 21 934-2021
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20 | FEBRUARY 2009
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