SCT: June 2010

Supply Chain Today June 2010 1

2 Supply Chain Today June 2010

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Supply Chain Today June 2010 �

June 2010

ContentsCover Story4 Ready for Action

Sapics6 Go East, Young Man, Go East

Barcoding Labelling Scanning + RFID7 Getting Stuck on Labels11 Use It, Don’t Lose It

Cleaning14 High on Cleaning17 The Feminine Touch

Market Forum — Unit19 Market Forum

Green Initiatives23 Carbon Footprints

Software27 Planning Ahead29 ERP for the People

Featured on the cover

Toyota forkliftWebsite: www.toyotaforklift.co.za

Transport + Logistics Management32 Sustainable Approach to Freight in South Africa

Market Forum — Supply35 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)

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

Advertising Sales:Lelanie Lane

DTP: Zinobia Docrat and Sanette Lehanie

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

The monthly circulation is 4 025 CopyrightAll rights reserved. No editorial matter published in Supply Chain Today may be reproduced in any form or language without written permission of the publishers. While every effort is made to ensure accurate reproduc-tion, the editor, authors, publishers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclu-sion 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.

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� Supply Chain Today June 2010

T his is the third regional distribution centre that Toyota Forklift is equipping with materials handling equipment for Massdiscounters, the other two being

their Durban and Cape Town RDC’s.

“The new Gauteng RDC which covers 70 000 sq meters will be the Massdiscounters flagship RDC and we are very proud to be associated with this prestigious project” says Gary Anderson, the National Sales and Marketing Manager for Toyota Forklift.

One stop solutionToyota Forklift, in conjunction with associated Eqstra sister companies, offers Massdiscounters a total one stop solution for their MHE needs including batteries, chargers, cleaners and main-tenance of all equipment and batteries.

“One of the main reasons why Mass has chosen Toyota Forklift is the ability to offer a total solu-

Ready for ActionToyota Forklift (a division of the Eqstra group) has been awarded the contract to supply the materials handling

equipment and associated services for Massdiscounters new Gauteng Distribution Centre being built in Gosforth

Park, Gauteng.

tion for Mass” says Ludwig van Eyssen, Logistics Executive for Massdiscounters.

Ludwig adds that “Toyota Forklift has the correct product mix required as well as the technical expertise and management tools, a service that no competitor is able to offer at present.

“This is phase one of the project, designed to ac-commodate ten years growth - it was imperative that a reputable, established partner with a proven track record and history with Massdiscounters be the preferred service provider.”

The materials handling equipment supplied includes,

7 x new BT Reflex RRE200E 12,5m lift reach trucks with unique tilting cabs.

Extended shiftsThe new RRE200 allows storage of up to 12,2 metres high. The New Reflex range is class lead-ing in terms of lift height, travel and lift speeds and is the preferred truck at a number of major retail operations nationally.

The trucks are also highly energy efficient and capable of extended shift times on a single bat-tery. The RRE is also equipped with a special on board computer terminal mounting bracket for the most ergonomic placement of this equipment on the trucks.

Fast pickingThe materials handling equipment supplied

includes:

10 x BT OSE250P low level order pickers with elevating platforms The OSE250P order pickers facili-tate fast order picking from both ground and 2nd level picking posi-tions. The driver goes up with the picking platform which can also be driven in the elevated position thereby facilitating the high pick rates required by the DC. There is also a picking shelf to allow the pickers to pick more than one item before lowering themselves to place the items on the pallet or roll cage being picked into.

39 x LPE200 powered pallet trucks, 23 with single and 16 with double pallet handling capabilities. The popular LPE200 is the workhorse of many operations around the country.

6 x Toyota 7FBE15 three wheel

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Reputable, established partner with a proven track record

COVER STORY

Left to right; Mike Lowe, Maintenance Manager Toyota Forklift Johannesburg, Paul Michau, GM Toyota Forklift Johannesburg, Ludwig van Eyssen, Logistics Executive for Massdiscounters, Desire Olivier, Logistics Project Manager, Massdiscounters, Jenifer Hill Sales Manager, Toyota Forklift Johannesburg, Steve Hatzipanis, Toyota Forklift National Key Accounts Manager for Massdiscounters


COVER STORY

A happy operator with his new OSE250P order picker

electric forklifts. The Toyota 7FBE is the most popular 3 wheel electric truck in South Africa and is highly reliable and robust.

4 x Toyota 8FG25 LPG counterbalance fork-lifts fitted with Bolzoni appliance clamps for handling of all large items such as fridges, stoves etc.

Toyota are the number one forklift in South Africa and BT is the number one Warehousing Truck. BT Warehousing Equipment and Toyota Forklifts are divisions of The Toyota Materials Handling Group (TMHG) the world number one supplier of material handling equipment.

Batteries and ChargersAll electric trucks supplied are fitted with Hawker batteries and charged with Hawker high frequency charges. The batteries will be handled and ex-changed using a Hawker Enersys battery bull system that will stack batteries three high. This concept allows the most efficient use of space and provides expansion for the fleet.

The battery charging process is managed by Hawker ’s Powernet system which will notify the operators (via a digital display) which bat-teries are ready for use. This system will ensure proper cycling of the batteries and will maximise their longevity while at the same time saving electricity.

Cleaning equipmentToyota Forklift will also supply and maintain three Hako Sweeper scrubbers required to keep the new RDC in tip top condition.

All materials handling and cleaning equipment supplied is managed by the FMX Fleet Manage-ment System which Toyota Forklift pioneered in South Africa. The FMX system provides real time monitoring of equipment as well as running costs and productivity statistics for Massdiscounters.

MaintenanceToyota Forklift will equip and man-age the onsite workshop as well as the battery bay at the new site. The services offered by Toyota Forklift include short term rentals, long term full maintenance rentals, service and maintenance agreements, fleet manage-ment, driver training, Hawker batteries and battery bay management. Toyota Forklift (a subsidiary of Eqstra Hold-ings) has been in existence for over 25 years and is the number one supplier of material handling equipment in Southern Africa.

“We have built up the largest in-frastructure of its kind in Southern Africa in order to meet the needs of our customers, with branches in the eight major cities in South Africa and

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dealers in Botswana, Namibia, Zimbabwe, Malawi, Angola, Madagascar, Zambia, Reunion and Mozambique” says Denny Reddy, Managing Director of Toyota Forklift.

Website: www.toyotaforklift.co.za

The preferred truck at a number of major retail operations nationally


K obus, who is the founder and group managing director of The Beijing Axis and chief executive of Bateman Beijing Axis, will present a case study-based paper

entitled “China in the Supply Chain: Strategy, Planning and Implementation of Procurement Programmes in the World’s Leading Low Cost Manufacturing Economy”.

“As Low Cost Country (LCC) sourcing becomes the focus of supply chain managers seeking to

Go East, Young Man, Go EastRecognising the growing role and influence that China has in the global export market, and its increasing im-portance in supply chains around the world, Sapics has lined up China expert, Kobus van der Wath, as a pre-

senter for the upcoming 2010 Sapics Conference.

minimise costs, made-in-China products are aggressively replacing manufactured goods from developed countries and even from other LCCs,” he states, adding that China in fact surpassed Germany as the world’s largest exporter in 2009, after trailing behind it, the US and Japan in the recent past.

In his Sapics Conference presentation, it is China’s potential risks and benefits that he will examine, to provide delegates with lessons in the strategy and planning of procurement in China, as well as implementation and operations issues. Practical issues will also be examined, and case studies presented.

The 2010 Sapics Conference and Exhibition takes place at Sun City from 25 to 27 July 2010. It will once again be held in collaboration with the Supply Chain Council.

For further information, or to register for the event, please contact Cynthia at the Conference Secretariat on (011) 805-6616 or [email protected]. Up-to-the-minute information is continuously posted on the Sapics Website at www.sapics.org.za.

Kobus van der Wath

China in fact surpassed Germany as the world’s largest exporter in 2009, after trailing behind it, the US and Japan in the recent past

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R owan Beattie, Managing Director of Pyro-tec, is passionate about labelling. When “Supply Chain Today” speaks to him and marketing manager, Lazelle Coetzee,

about the technicalities of specialised labelling, their enthusiasm is contagious.

“We’re recognised as the go-to company to ap-

Getting Stuck on LabelsAlmost anyone can get a label on a box or a

bottle under ordinary circumstances, but unusual applications require a

more committed approach.

proach when it comes to unusual labeling ap-plications. Our teams devote hours to resolving customers’ specific needs,” he tells us. “Each new application has its own set of technical challenges, whether it’s limited space, contain-ers with surfaces to which labels have difficulty adhering to, limited budgets, short lead times. We handle it all.”

Labels on cows?Rather than take Rowan’s word for it, we ask him to give an example of a particularly unusual request. His answer is accompanied by gales of laughter from the team. “Pyrotec PackMedia recently received an enquiry for a scratch-off label that is stuck to the back of cow,” he tells us, obliquely. We soon discover that the product was requested by farmers wanting to monitor bovine reproduction.

“The idea is that the label would be attached to the cow and would subsequently be removed after she came into season and received the at-tention of a bull. The ‘scratched-off ’ label would indicate that the animal had been covered,” he explains. “We haven’t tackled this project yet, but it’s intriguing.”

He continues on a more serious note, adding: “It would be wonderful to produce ethical multilayer

Rowan Beattie, Managing Director, Pyrote

Promotional opportunities are optimised with correctly designed labels

BARCODING LABELLING SCANNING + RFID

Recently received an enquiry for a scratch-off label that is stuck to the back of cow


labels which could be adhered to cattle. They would ‘travel’ with the carcass or parts of the carcass through to the supply chain and to the consumer who will be able to identify where the meat came from, the specific farm, details on its pedigree, feed, abattoir and how to cook it for best results. This multilayer label would also be great to track the ‘journey’ of Karoo lamb from ‘birth to table’.”

Wine storiesThe company has already flexed its inventive muscles in the local wine scene with a similar concept. “We identified an opportunity for wineries to differentiate themselves by providing more information to their consumers about their vineyards and extra services,” Rowan informs us. “In response, Pyrotec invented the Story-Behind-Our-Wine label, which is a professional looking, high quality leaflet label.”

In many instances, however, products need to be tailored to accom-modate budget-ar y i ssues. “The spend-ing power of the average consumer is less in South Africa than in first world c o u n t r i e s in Europe and North America,” he goes on. “This restricts, to a certain extent, in- Clever la

belling is

a valuable m

arketing to

ol

Pyrotec’s sophisticated labelling systems

novative and added value options that brand owners can consider using for their packaging.”

With wingsRather than seeing this as a hindrance, the company has made the best of the situation, coming up with innovative solutions on a shoestring. “Clients want to achieve more with less budget,” he says explaining that labels are ideal for optimising marketing spend. “The label is right there at the point where customers are making a decision, which is why the information on the pack is so important.

“So Pyrotec PackMedia invented the Wing-label. It’s a patented double-layer label construction produced in a more efficient way than our Fix-a-Form leaflet label but is still an ideal solution for

on-pack promotions.

Dangerous errors“We’ve also recently engineered some particularly robust leaflet label

solutions for phar-

ma-c e u -

t i c a l c l i e n t s where they need to include a l o t o f in -fo rma-tion on s m a l l

cylindri-cal con-tainers,”

e x p l a i n s Rowan.

Labe l l ing i s particularly im-

portant in the phar-maceutical industry,

where poorly presented packaging and labelling

materials can result in po-tentially dangerous medication

errors. Here, regulations can be so stringent that manufacturers are

even moving away from including inserts in medicine containers for fear that the ink

will contaminate the drugs.

The Fix-a-Form range has overcome many of these issues by offering laminated bi-fold and even



booklet formats for display of large amounts of text, graphics or tables. Application is via standard labelling equipment and has little or no impact on packing line speeds.

For kidsThe pharmaceutical industry adds an ad-ditional hurdle in the form of child-proof requirements. “Over here, budget is often a motivation, while overseas they’re more concerned with keeping the kids out of the medicines. Manufacturers are using intricate layers of labels and packaging to make prod-ucts more difficult to access,” he says.

Most acknowledge that the term ‘child-proof ’ is a misnomer; not much will withstand the attentions of a single-minded toddler. How-ever, performance testing can determine the length of time it might take for that toddler to succeed in getting a medicine container open. To pass muster, tests must indicate that a high percentage of children should be unable to open a test package within five minutes.

Techno trackingRowan keeps an eye on these developments, and others. He admits that he’s excited about the progress being made in at-taching RFID to packaged products. The technology has taken time to catch up with initial hype, considering that successful large-scale implementation has to overcome the financial hurdles involved. “It’s already in limited use in various sections of the distribu-tion chain,” he enthuses. “It’s only a matter of time before it sees wider employment.”

As it stands, many of the options avail-able are fairly sophisticated already. Marrying up information on the outside of a product with the details enclosed inside can complicate the packaging process, but it was a challenge the Pyrotec team embraced when work-ing on a project for Grants Whiskey recently.

“There’s so much more to this industry than meets the eye,” Rowan says in closing. “It’s the reason we constantly push our limits, for instance with our Pyro Inspiration Awards; to see what innovations we can come up with next.”

Rowan Beattie, Pyrotec, Tel: (021) 787-9600, Fax: (021) 787-9791, Email. [email protected], Website. www.pyrotec.co.za Labelling challenges can take many forms

Neck tags enable manufacturers to add useful information

Not much will withstand the attentions of a single-minded toddler


10 Supply Chain Today June 201030 Supply Chain Today Jan 2010

This prestigious award recognises people, projects and products

that have gone above and beyond the call of duty to

enhance the environment in which they operate.

The inaugural awards in 2009 enjoyed a wonderful response

from the supply chain community and everything is on track to make this year’s event one of the indus-try’s most prestigious accolades.

Come and see who walks away with the coveted trophies and

enter your product or project for this year’s event.

Entries for this year’s event close in June and the awards ceremony is being planned for 26 August 2010.

GreenSupplyChainAwards

Contact: Catherine Larkin on

Tel: (011) 789-7327/787-9127,

Cell: 083 300 0331, Fax: (011) 787-7865

Email: [email protected]

Are You Doing Your Bit?


You wouldn’t take your hard earned Rands and Cents and bury them in the garden,

under the bed and in the neighbours property in the hope that one day you will find all your money and use it when you

next need it.

N either should businesses with valu-able items lose track of their assets. Identification and tracking of items is big business in the industrial sector

where anything from raw materials to tools and capital equipment are registered and tracked using technology.

“Supply Chain Today” pops in at Traceability

Solutions in Honeydew which has a number of innovative solutions that are tailor-made to the industrial requirements of their clients. These range from simple markings to highly sophis-ticated computerised systems that log, track and trace goods through the use of high tech 2 dimensional (2D) codes.

Effective markings“In the past it used to be about marking goods for identification and ownership purposes, but today markings are used for a far greater number of purposes. Industrial clients nowadays not only want to locate and identify their products, but also want to use the marking to reflect a number of other criteria such as time and date of manu-facture, batches, descriptions and details,” says Kyle Parker of Traceability Solutions.

He continues by saying that markings have gone from the use of readable digits or letters in years gone by, to barcodes more recently. These sys-tems had shortcomings in the field and even the trusted ever prevalent barcoding system is not sufficient for today’s requirements.

The latest 2D marking technology available from Traceability Solutions allows users to enter more data per mark than previous methods. It is also less susceptible to the type of reader errors that plague barcoding systems and for security purposes can be miniaturised or hidden to avoid detection.

CodingJust like other markings, it uses a mark and sequence to form a code that identifies the product. The main difference is that it is read vertically and horizontally as opposed to older techniques.

“Both person-readable codes and barcodes are read horizontally from one side to the other. If a digit or line is damaged, obscured or removed, the code is rendered useless and all the information associated with that item cannot be obtained. In heavy industrial applications, like the steel indus-try, this is a problem and, as a result, a smarter technique has been developed and adopted by industry role-players,” says Kyle.

The main advantage of using a 2D code is the ability to store more information. This allows more efficient usage of information for storage, tracking and tracing. It also allows up to 25%

Use It, Don’t Lose It

Examples of 2D markings

Kyle Parker of Traeability Solutions

These systems had shortcomings in the field and even the trusted ever prevalent barcoding system is not sufficient

30 Supply Chain Today Jan 2010

This prestigious award recognises people, projects and products

that have gone above and beyond the call of duty to

enhance the environment in which they operate.

The inaugural awards in 2009 enjoyed a wonderful response

from the supply chain community and everything is on track to make this year’s event one of the indus-try’s most prestigious accolades.

Come and see who walks away with the coveted trophies and

enter your product or project for this year’s event.

Entries for this year’s event close in June and the awards ceremony is being planned for 26 August 2010.

GreenSupplyChainAwards

Contact: Catherine Larkin on

Tel: (011) 789-7327/787-9127,

Cell: 083 300 0331, Fax: (011) 787-7865

Email: [email protected]

Are You Doing Your Bit?



of the code to be obscured without af-fecting readability.

Direct code markingDirect Part marking (DPM) allows us-ers to put markings directly onto items thereby reducing manpower require-

Miniaturised markings on a bearing housing

A hand help pinstamp marker

ments and cost.

Most materials can be marked directly by means of pinstamp or laser marking techniques. This means that materials as diverse as metal, steel or even a bird feather can be marked without the need for consumables such as paint, ink or labels.

Where specialised markings or colour codes are required, laser markers use the thermal properties of the item to change the colour of the materials as required. It is possible to mark stain-less steel in almost any colour of the


Supply Chain Today June 2010 1�

rainbow without the addition of paints or inks.

“When the electronic marking device is used, it is possible to store informa-tion relating to the item directly to an enterprise resource planning (ERP) system which can be made available across a network to users anywhere in the world. When the item needs to be identified, a user will scan the code in much the same manner as a barcode reader,” Kyle adds.

Industrial suppliersTraceability Solutions provides marking hardware such as marking devices, readers and consumables for the mark-ing and tracing of items. Solutions range from high-tech 2D markings to barcoding and specialised labelling systems. These include heat resistant and abrasion resistant labels for the steel industry, indestructible labels for military, and specialised retail labels that cannot be removed and placed onto other items.

The company is also involved in research and development of suitable markings for a number of unique applications within the manufacturing industry. One of the most noticeable developments is its application of 2D technology to mark strands of cable before it is wound to identify stolen telecommunication and electrical cables.

A number of innovative uses have already appeared in the metals and manufacturing environment. As the technology develops and becomes more widely used in our industry, it is likely that 2D coding and marking will super-sede barcoding and other methods of marking within an industry that requires rugged, reliable technology.

“We are eager to work with manufactur-ers and anyone involved in the metals and other advanced materials industries to develop technologies and solutions for the marking, tracking and tracing of materials within this specialised industry,” concludes Kyle.

Traceability Solutions, Kyle Parker, Tel: (011) 794 5299, Fax: (011) 794 2844, Email: [email protected], Web: www.tracesol.co.za

Indestructible labels for military and specialised retail labels that cannot be removed and placed onto other items

Close-up of a pinstamp in operation

An example of the versatility of 2D marking equipment is the permanent laser mark-ing of a car manifold


1� Supply Chain Today June 2010

A lthough we started in the industry doing straightforward domestic and commercial window cleaning, we’ve developed along the way, specialising in

cleaning at height, but also cleaning of facades and carpeting in offices,” he continues.

From the groundUsing a water-fed pole system that’s relatively new to South Africa, although it has a 30-year history in the States, the team is able to clean windows up to five storeys high from the outside and from the ground. Tom tells us that cleaning from the ground is suitable for South Africa since so many companies do not comply with Health & Safety regulations. “It’s not uncommon to see guys hanging off ladders at great height,” he says.

High Clean Window’s system uses purified, distilled water pumped up a pole to the window surface. When agitated upon a surface, purified water will absorb dirt, leaving windows cleaner than when using detergent.

“Detergents have the additional disadvantage of leaving a residue on the surface, which will later attract dirt, causing the windows to become dirtier sooner,” Tom explains. He adds that purified water is used because the mineral content in ordinary tap water will leave a milky film on the surface that you can actually write your name in.

High on Cleaning

High Clean’s system can clean windows up to five storeys high, from the ground

High Clean Windows may be run by a pair of guys called Tom and Gerry, but it’s no Mickey Mouse

operation. When “Supply Chain Today” meets Tom Binns to discuss the intricacies of washing windows at height, he laughingly tells us that they’d consid-ered using a Disney theme for their company but didn’t want to be sued for copyright infringement.

Tom Binns, High Clean Windows

It’s not uncommon to see guys hanging off ladders at great height


Health & Safety regulations.

“We recently worked on a 20-storey building in the Jo’burg CBD using rope access. Our guys looked like ants climbing around on the build-ing,” he chuckles. “Obviously a project like this is complex and it costs money to make sure that the safety protocols are in place. Other compa-nies might be prepared to cut costs by stinting on safety, but we won’t.”

Other cleaningIn addition to windows, High Clean also offers a high-pressure façade cleaning service. “A lot of buildings that were constructed a decade ago are starting to look shabby. What was once white is now green or grey. If you clean these surfaces regularly, you’ll also save window and door frames, and cut back on long-term main-

Cleanliness is crucialWhile some may not think clean windows are a necessity in a warehouse, Tom begs to differ. “Cleanliness is vital in any environment, particular where people work, or goods are stored,” he says emphatically. “’Sick Building Syndrome’ isn’t only about airconditioning. It’s also related to dirty buildings. Bird droppings are a major problem – they carry about 66 different diseases, most of which are respiratory!

“Smog is also a problem. Drive into any major city and you can literally see the air you’re about to breathe. This coats the surfaces of buildings, and results in sick staff and dirty products. Any building with goods standing for a length of time will accumulate dirt. Cleanliness is critical for food storage.

“It’s in a company’s best interests to keep facili-ties hygienic and healthy. Not only will it impact employee productivity, but it also has a positive effect on public image. We re-cently cleaned all the windows at the Fast n Fresh facility in Midrand. While the primary aim was hygiene, aesthetics played an important role.

“However, we often quote on an entire storage facility and find that the client will choose to clean only the office area and leave the warehouse. There are various reasons for this – many warehouses install perspex win-dows at height and these are difficult to clean.”

Tricky processTom prefers to assess a job prior to quoting since projects can vary greatly. When it comes to double and triple volume ware-housing cleaning becomes more specialised. “A lot of people don’t realise that cleaning at height is a tricky process, and we don’t take shortcuts. Tasks that are simple at ground level become a different ball game when you’re five floors up.

“Sometimes people are aston-ished when we quote on cleaning windows or changing lightbulbs and it’s more than they expected. But they’re not taking into the account the procedures neces-sary to maintain the safety of our cleaners up there,” he explains. “Over five storeys, we need to implement a rope access system, which must adhere to strict

Nothing’s too tall, or tricky to clean!

The client will choose to clean only the office area and leave the warehouse

CLEANING


tenance costs.

“Additionally, we’ve found that while many companies hire out high pressure equipment, not a lot of companies actu-ally know how to use it. We provide this service, along with advice on correct ap-plication of specialised chemicals when necessary.”

Still on the topic of other cleaning ser-vices, Tom tells us that the company has a Builders’ Cleaning package designed to make new buildings fit for occupation. But by far the strangest project they’ve undertaken was the cleaning of a number of giant inflatable toys. “It was really just an experiment,” he grins. “Ultimately we found it was easier to deflate them, scrub them with brooms and then blow them up again. But it was good for a laugh!”

Tom Binns, High Clean Windows, Tel. 011 786 6563, Fax. 011 440 6882, Email: [email protected]

Many companies are aware of the value of presenting a clean image to clients

A lot of buildings that were constructed a decade ago are starting to look shabby

CLEANING


W hile this may seem like the perfect solution, it’s not as simple as it would seem, “Supply Chain Today” is told by Elize Venter, CEO of Woman@

Work. The company specialises in assigning cleaning crews to warehouses, factories, offices and shopping centres, and has experience in the technicalities of handling dirty business.

“We have teams of both male and female clean-ers, but nobody cleans as well as a woman,” she laughs. “The problem is that we can’t assign women to all of the projects we handle.”

The reasons for this are varied, from safety issues to bathroom etiquette. However, some, such as harassment by male work-ers or gender inequality in the workplace, are quite troubling.

Culture clash“There have been a number of instances where I’ve as-signed female supervisors to a project and it’s been a disaster,” she tells us candidly. “At one company, the lady in charge of the landscape team ended up pushing the lawnmower herself while the men sat

The Feminine TouchStoring products is a dirty business. And who better to handle

the mess than a team of clued-up cleaning women? around doing nothing.

“As capable as she was, I had to take her off the project because they simply wouldn’t take instructions from her. Often it’s a cultural thing – some ethnic groups have yet to embrace the concept of a truly equal workplace. The harass-ment aspect is far more disturbing though because I can’t see how that can be sanctioned in terms of cultural behaviour.”

Male workforceIn other instances, the reasons are more un-derstandable. “Many warehouses and factory facilities have entirely male workforces. These guys are really uncomfortable with women in their bathrooms,” she smiles. Considering the ‘exposed’ nature of men’s toilet facilities, this is hardly surprising, although the same principle applies in ladies’ rooms.

She goes on to add that when it comes to the regularly scheduled ‘deep-cleans’ required to keep things spotless, women remain the best option. “I’ve found that a man will give things a quick wipe and feel that this is good enough. They find cleaning demeaning. Women will pay attention to detail, and they usually don’t care how menial a job seems.”

Safe and soundOther areas where employers prefer to use male teams include dangerous zones or cleaning at height, although Yolindi Botes, Contracts Manager at Woman@Work, emphasises that the company employs many women who are quite adept at cleaning in high areas.

From what she tells us, it’s obvious that there’s more to a project than the gender of the team employed. “When we quote on a job, there are numerous issues to factor into the equation,” she explains. “We need to calculate the floor space that needs cleaning and determine what equipment must to be used, along with chemicals required. “We may also need to designate HACCP cleaning zones and colour code these areas, particularly in facilities where food is handled.”

Safety concerns can be numerous and varied, although some are simply a matter of common sense. “We handle cleaning in a number of metal facilities, where we ensure that our teams wear well-fitting overalls so that sleeves and cuffs are not hooked on metalwork. It may seem like a little thing but it could cause an accident.”

Well-equippedSite evaluations allow the company to establish which areas can be cleaned with mechanised

I’ve found that a man will give things a quick wipe and feel that this is good enough

CLEANING

Elize Venter, CEO, Woman@Work

Female cleaners


sweepers, and which must be swept manually, for instance around piles of steel. Elize is pas-sionate about her equipment and keeps abreast of developments in the field, opting for the best systems available.

The Team: Maryke (Admin), Bea (Ops), Les (Ops), Elize (CEO), Juanita (Sales Manager), Yolindi (Sales), Desirè (Sales)

“I’ve often been advised to consider some new low-budget option, but it’s just not worth it,” she explains. “When a company outsources its clean-ing programme to us, they expect the job to be done without some technical hitch as a result of

machine failure. It’s our responsibility to handle it without any inconvenience to them so they can focus on their own business. If they wanted to worry about cleaning or chemicals, they wouldn’t enlist our services.”

Averting a problemElize takes this further by implementing quality control programmes along with checks to monitor materials, consum-ables and equipment. Illustrating the attention to detail she values in her teams, she explains the importance of staying on top of every aspect of the process. “It’s the best way to avert any possible problem before it happens.” We’re pretty sure you could eat off the floors at Elize’s house.

Elize Venter, Woman@Work, Tel: 011 894-2031, Fax: 086 503 8768, E-mail: [email protected], Website: www.womenatwork-cleaning.co.za

CLEANING


Market Forum

Premium conditionsThe organisers of The Wine Show Jo’burg 2010 signed a partnership agreement with Dawn Wing, one of the country’s leading courier and logistics companies, to handle all their delivery requirements for the recent wine show held in Jo’burg show and its exhibitors.

According to organiser John Woodward, Dawn Wing was ideally suited for the job. “Dawn Wing has the superior facilities to consolidate the 70 pallets of stock, which were delivered to the show. We have been particularly impressed with their specialist division, which is dedicated to wine deliveries. This service includes repacking stock into special boxes with custom-made inserts to ensure that the wine arrives in premium condition for the customer,” mentions John.

Multipurpose service Singapore-based Pacific International

Lines re-launched its Multipurpose Service between China and Africa in March 2010. This service offers customers a direct link for projects and break-bulk cargoes between China and Africa ports. It carries both containers and general cargoes.

The service covers Xingang, Shanghai, Huangpu in China and Durban, Tema, Lome and Lagos in Africa. Any ad-ditional port(s) to be called will be on an inducement basis. At the initial stage, the service will be operated with four multipurpose vessels of about 20,000 dwt with a monthly frequency. The service will be upgraded to provide a wider market coverage and increased frequency at a later date.

PIL currently operates about 106 containerships and its

Dawn Wing launched their Fine Wine Express division in 2008 to meet market needs and offers customised solutions for wine deliveries. “We wanted to make it easy for international tourists and for South Africans from all over the country to access wines with ease and confidence. With our extensive Cape Town office, we are able to support the wine estates based in the Cape with a large national footprint and access to a highly substantive global network via our international partner, DPD ,” explain Benita Buitendag of Dawn Wing.

Website: www.wineshow.co.za.


Market Forum

TO LET20 000 square meters @R18 per meter

Crane rail siding offices, 5000 KVA, immediate occupation

Location: Brits

Contact Paul Steyn:

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liner services have extensive coverage at ports in China and Africa. The re-launch-ing of the Multipurpose Service is to cater to the strong demands of its customers in the growing trade between China and Africa.

Website: www.pilship.com

Label applicators ProScan Media Products (PMP) currently supplies a comprehensive range of inkjet printers and print ‘n apply applicators from United Barcode Systems (UBS). The Collamat range will complement these products and extends PMP’s offering into high speed conveyor belt labelling applications.

The Collamat range, distributed through PMP, will include six traditional label appli-cators which are characterised by their compact and durable design, versatility and high labelling speeds of up to 250 m/min.

PMP will also offer the new Collamat 8000 Cross Web, an advanced industry label dispenser and vacuum cham-ber, which has the capacity to apply a row of labels at a time, increasing productivity by combining packaging and labelling in one operation.

Roland Pinz, Managing Director on PMP, Email: [email protected], Web: www.proscanmedia.co.za

The Smart Reset door is a heavy duty rapid roll-up door that repairs itself

Smart reset doorApex Strip Curtains recently introduced an innovative heavy duty rapid roll-up door to the South African market. According to Wim Dessing, managing director of the company, the Smart Re-set door will result in less need for door maintenance with subsequent savings in

costs and time

Wim says that the most important ad-vantage of this robust high speed door is that should the side be accidentally dislodged, it will be automatically recov-

ered during the next opening and closing operation.

“The ingenuity of the design is that the side hinges slide along special guides, together with the flexible curtain ends, and should the curtain be accidentally hit, the hinges come off the guides to

avoid damage to the flexible cur-tain,” he explains. The Smart Reset

door also incorporates a DSC electronic safety device which will automatically reverse the motion if an obstacle is hit when the door is closing.


Market Forum

Out of sightThe superbly compact, lightweight 8515 vehicle mount terminal from Psion Teklogix packs features for streamlin-ing warehouse supply chains and simplifying employees’ daily tasks quite significantly.

Manufacturing plants, warehouses, airports, harbours, in fact all facilities handling the movement of products, work to extremely tight deadlines, and forklifts and trucks demand deft, safe, quick manoeuvring in tight spaces. The line of vision on these vehicles cannot be obscured as the operator needs all round visibility in order to maintain safety, speed and accuracy of the picking or loading process and communicate with the central management system.

Designed to stay “out of site”, the lightweight Psion Tek-logix 8515 vehicle mount computer is packed with cutting

The door is controlled by an electronic unit that complies with all IEC regulations and can be activated by any type of remote control equipment including photocells, pressure sensitive mats, movement detectors or induction loops. To facilitate safety, the Smart Reset door is fitted with a release lever that opens it from either side in the event of a power failure or malfunction.

Wim Dessing, Apex Strip Curtains, Tel: ( 011) 452-8723, Website: www.apexstrip.co.za

edge technology, yet it is so compact that it never inter-feres with the operator ’s line of vision. Uncompromising on durability and performance, the Psion Teklogix 8515 vehicle mount computer, features a razor-sharp, easy to read in almost all lighting, touch – sensitive, 640 X 480 full screen colour display that supports a vast range of applications. The five wire resistive touch screen has adjustable backlight brightness with stylus and anti-re-flective, anti–glare coating.

The 8515 supports a two way speaker/microphone with Push-to-Talk capability and Voice over IP permits constant contact with forklift operators in the warehouse allowing immediate contact with supervisors/management as to factors that may be hindering or preventing maximum productivity.

Michelle Hollis: Country Manager, Psion Teklogix Africa, Tel: (011) 805-7440, Fax: (011) 805-7444, Email: [email protected]

Tanker fleetUnited Bulk is one of South Africa’s premium tanker-trailer hauliers, transporting food-grade products as well as Dangerous Goods such as liquid petroleum gas (LPG), ammonia gas, solvents and acids.

While United Bulk’s 90-truck and tanker fleet consists of


Market Forum

www.engineerplacements.com

Engineer Placements

Example from Goscor Lift Truck Company’s new Crown WT3000 pallet truck series

various OEM derivatives, MD Patrick Pols is a staunch believer in the power and payload efficiency of American truck tractors.

“We run 6x4 truck tractors from Eu-rope and the USA but we’ve found the American vehicles to be more cost ef-ficient and profitable because of their comparatively low tare mass and excel-lent fuel consumption,” says Patrick. “As a result, the newer vehicles in our fleet are all American-made.” The two leading US brands in South Africa are International and Freightliner.

The latest United Bulk order for Freightliner comprises 15 Argosy 90 CUM 500s and 12 Columbia 112 6x4 truck tractors.

Shirle Greig, Tel: (012) 677-1904, Fax: (012) 677-1682, Email: [email protected]

Significant advancesSoon the all-new Crown WT3000 pallet trucks will join the army of Crown machines loading, unloading and picking goods in warehouses and loading bays across the land.

Goscor Lift Truck Company’s (GLTC) MD, Darryl Shafto says the WT3000 series has all the qualities a pallet truck requires to work day in and day out in demanding conditions. “This is an ultra-tough design with unique

durability and outstanding ergonom-ics,” Explains Daryl.

With respect to Crown’s philosophy that a ‘comfortable operator is a pro-ductive operator ’, the WT3000 may be the best a ever designed. It comes with Crown’s patented FlexRide system which reduces vibration by up to 80% while its floating suspension system reduces operator fatigue and prevents knee and back pain. “Perhaps best of all,” says Daryl, “the shock-absorbing suspension smoothes out uneven floors so operators no longer have to slow down when crossing ramps, boards and sills. The net result is faster loading and unloading and greater productivity all-round.”

The rear-entry models are even avail-able with Crown’s unique, patented, weight adjustable FlexRide system, which, in this case, optimises driv-

ing comfort by tuning the vehicle’s suspension to the individual’s body weight!

Darryl Shafto, Goscor Lift Truck Company, Tel: (011) 393-1413, Fax: (011) 976-2176, E.Mail: [email protected], Website: www.goscor.co.za


J an Smit, DCS business executive at GijimaAst, is the driving force behind the company’s green initiative, encouraging organisations to reduce their carbon footprint, be more

environmentally friendly and adapt to the move to reduce global warming.

Carbon FootprintAt a time when many companies are still paying lip service to the concept of environmental friendliness, some

are stepping up to the plate and truly embracing corporate green responsibility.

“It’s already begun in South Africa with giants like Total SA and ABSA, and other companies with international ties, where greening is part of a long-term profile that guides these organi-sations in their day-to-day operations,” he tells “Supply Chain Today.” “It’s also taken off with companies in the sectors that have the greatest environmental impacts, like mining. Most of

these organisations have to adhere to the new SHE policies.

“For instance, DeBeers rehabilitates mine land to create game farms promot-ing conservation. It won’t be long before we see many local companies catching up. Environmental responsibility and energy efficiency is a selling point for most companies today and is being followed as a matter of course.”

Green driveWhile much has been made of the recent move to focus on the supply chain as a source of carbon emissions, Jan tells us that the issue extends far beyond this. “It’s not only about carbon emis-sions, but about the entire process,” he explains. “How green is the equipment, is it energy compliant? What are my suppliers doing to go green?

“Companies like De Beers are introducing electric trucks, others are implementing smart-er scheduling and better routing. Another prime area for rationalisation is in inventory, where companies can make significant improve-ments in efficiency, in terms of productivity as well in capital invested in stock.

Long-term process“Businesses need to look at the entire supply chain to become more cost effective and en-vironmentally friendly. However, this is a long term process that needs to become a way of life

GREEN INITIATIVES

If you think about it, our world is one giant supply chain


rather than a business initiative alone.”

He adds that the supply chain starts long before the first truck is loaded. The rubber hits the road every morning when staff commute to work. “You have to consider the carbon emissions of employees traveling to and from work, or the energy consump-tion required to perform their daily tasks,” Jan emphasises.

“One of our clients spends R40 million a year on air travel. The same company generates 70 million pieces of paper. These are environmental issues that need to be addressed by all players. The principle of corporate accountability needs to pervade the entire organisation.”

Energy auditJan’s unit specialises in evaluating company pro-cesses and then making recommendations based on trouble spots. He emphasises that the move to reduce an organisation’s footprint must be powered from within and form part of a holistic approach.

“Realistically it takes three months to compile an

We’re all talking about going green and how good it is, but no-one has done it and put the proof on the table

GREEN INITIATIVES


audit for a company, implementation takes six months to a year and then it’s up to the organisa-tion to integrate the recommendations. It requires a mindset transformation to inspire change and awareness, to become an ethos rather than a mindless chore.

“I like to encourage companies to establish their carbon status the way individuals establish their HIV status, so that they have the information necessary to behave responsibly,” he smiles.

Bankable initiativesWhile the supply chain is an obvious concern, often it makes sense to address grass-roots prob-lems first. “Reducing electricity consumption can have an immediate impact,” explains Jan “After all it’s the second largest operational expense after human resources. Sometimes it’s best to identify the ‘low-hanging fruit’ and tackle these before moving onto other areas.”

The outcome is not only a smaller footprint and significant savings, but results that can be re-directed into bankable green initiatives. “These initiatives are fundamental to ongoing green performance, but are worthless if not monitored and quantified to form a history of progress,” Jan points out.

Impressive savings“Often a company will ‘virtualise’ its systems, which has the potential for impressive savings. However, it is essential to check back against previous performance to monitor the difference. Companies become de-motivated if significant progress is not made. People need to ‘feel’ the process at work, rather than just assume it is effective.”

To make progress truly tangible, GijimaAst has initiated a finance model that allows clients to buy technologies using green savings made from the green solutions. “It’s a self-funding endeavour which allows constant growth in new technology, increasing operational efficiency. This, in turn, increases profits.”

Taxing emissions Jan has some words of warning for those who are dragging their heels about getting on-board. “The government is al-ready in talks about tax-ing enterprises based on their carbon emis-sions,” Jan warns. “But it shouldn’t be all about avoiding sanction. Why not take advantage of the benefits?

“The trade in carbon credits within the interna-tional community is a trillion dollar industry that will soon begin impacting South Africans. Once the fiscal benefits become apparent, we’ll start seeing more companies committing to social and environmental responsibility. This is already be-ing applied in the tender process, where carbon certificates are becoming mandatory.

Overall impactHe adds that an effective energy system will impact all the way down the supply chain, both financially and environmentally. He believes that every com-pany has a logistical process involved in getting their product or service to its market, even if it doesn’t specifically rely on fleets of vehicles or vast warehouses to ac-complish this.

“If you think about it, our world is one giant supply chain, where one action, service or product directly im-pacts on another,” says Jan. “The process of movement needs to be streamlined to reduce our overall impact on the planet.

Waste compactor“Systems need to be incorporated into our daily lives that reduce the need for wasteful activities, such as hard copy printing for ex-

Where money is involved there will be the sharks circling

Jan Smit

GREEN INITIATIVES


ample – it’s no longer necessary to generate reams of paper for proof of delivery. In essence, the term ‘green’ means we should be as productive as possible with as little as possible. This will not only cut costs but improve productivity, making us more efficient.

“In spite of all the talk, few are really doing it,” he admits. “We’re all talking about going green and how good it is, but no-one has done it and put the proof on the table. Our business unit is changing that, becoming environmentally friendly with quantifiable results that we will use as a model for others to follow.”

The GijimaAst building in Midrand is the first major step in this process. It forms part of a green campus that is energy efficient and reduces its dependence on Eskom power, deriving 80% of its lighting energy from natural sources. “We want to be the first carbon neutral ICT company in South Africa so that we can show clients it’s possible,” Jan says.

Old technology“We don’t make a lot of money from consulting; the money lies in implementing the systems. The funny thing is that the technology has been around for years; it’s only now that companies are beginning to see the value in the applications that they’re getting more involved.”

Obviously, the scenario has a downside too. As with all things, where money is involved there will be the sharks circling to make a quick buck, often in the form of ‘services’ such as footprint certification. Others are concerned that companies are only making changes as part of a PR gesture. “Personally, I don’t particularly care if this is the case. As long as we’re going green what does the motivation matter?” he concludes.

Jan Smit, GijimaAst, Tel. 012 675 5000, Fax. 086 212 5035, email. [email protected], Website. www.gijima.com

GREEN INITIATIVES


W e chat to Johan Grobler, Contract Manager for Unitrans Freight and Logistics and ask him how LogiX is applied to their day-to-day business

at Tydstroom.

Quick and efficientSays Johan, “LogiX is useful for our daily sched-uling of multi-drop deliveries, which we make using about 30 trucks at a time. It is especially beneficial to us and our customers as it offers both efficient vehicle and load capacity utilisa-tion. “For us the system is tremendously quick, efficient and cost effective.”

He adds that the system saves Unitrans at least two hours each day in scheduling activities.

“Since moving over to this system our customers have reacted extremely positively. As for improved efficiency for Tydstroom for on-time deliveries, this has seen a 12% increase.”

Trip sheetsFred Theart, Contract Supervisor: Tydstroom

Durbanville agrees that the LogiX system is helpful to Unitrans customers on a daily basis. Says Fred, “It allows us to print out trip sheets that we hand to our drivers so that they follow the process that our customers prefer.”

Unitrans Freight and Logistics comprises seven Strategic Business Units. Each unit is closely aligned with its customers’ business therefore they provide specialised expertise to each sector.

It is, therefor vital that Unitrans maintain con-trol over planning and logistics so it can man-age costs and supply a premium service to its customers.

Reduced overtimeSince Pathfinder Logistics Solutions implemen-tation of the system for Unitrans at Tydstroom, various process changes, adopted by Unitrans, have resulted in a reduction in overtime because the management team guides and briefs their drivers as to what is the best route they must follow.

“We also store the historic data from the system to produce accurate management reports. All of this for a reasonable price,” says Fred.

In addition to finding the shortest route, LogiX schedules different products onto available ve-hicles to ensure all orders scheduled are delivered within a specific time frame.

Not looked backIn particular Unitrans benefits from increased efficiency in time scheduling, vehicle utilisation, vehicle capacity utilisation, route optimisation as well as in the area of new business proposals.

Unitrans adopted the system to establish a minimal fleet from day one which has proved so successful that the company has not looked back since. “Forward planning logistics for a business of our size is critical, therefore this system suits our needs perfectly and keeps our business moving each day - as well as keeping our customers happy,” Fred adds.

“In addition Pathfinder is flexible and responsive and they completed the implementation within three days. An unbelievably smooth change-over to an extremely user-friendly system – our staff became accustomed to it in no time.”

The UK-developed software system, LogiX, is currently being utilised successfully by South African freight and logistics giant, Unitrans

Freight and Logistics. First introduced to the company by Johannes-burg-based Pathfinder Logistics Solutions, an agent for the system, LogiX was implemented three years ago in the Unitrans Freight and

Logistics operation in Tydstroom, Cape Town.

Planning Ahead

Johan Grobler

A reduction in overtime because the management team guides and briefs their drivers

SOFTWARE


Clear on their rolesFred adds that there is minimal support required subsequent to implementation as it is a fairly self-sufficient system, as long as everyone is clear about their role.

LogiX has also helped Unitrans to overcome particular scheduling difficulties. For example, it assists planners to know when a certain ve-hicle is available for re-scheduling to help out if difficulties are being experienced with certain deliveries.

Fred concludes, “This system certainly helps you plan ahead while having an accurate and a useful data plan in front of you at all times.”

ReportcardAs a result of implementing LogiX in an opera-tional environment that includes daily scheduling, Unitrans has experienced positive results.

When compared with a manual scheduling process, between 20 and 25% of hours have

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been taken out of the scheduling operation on a daily basis giving more time for schedulers to plan ahead for the next day.

Vehicle utilisation has been improved at an estimated 10-12%.

On-time delivery is impacted positively by about 12%.

Customer satisfaction scores high.

Management’s control of its operation has seen a vast improvement as Unitrans now has an accurate trip sheet to work with.

The company’s relationship with its drivers is positively impacted as the system provides a benchmark for driver delivery. If drivers deviate from the process, the system is used as a useful tool in industrial relations (IR) procedures.

Vincent van der Riet, Pathfinder Logistic Solutions, Email: [email protected].

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SOFTWARE


SOFTWARE

S trategix Business Solutions managing di-rector, Jaco Stoltz, says this shift is being driven by workers’ dissatisfaction with rigid solutions that fail to integrate cross-busi-

ness processes, adapt to changing global markets, or address the needs of individuals in different kinds of jobs. “This inflexibility results in poor usability, both for the individual worker and for the solution’s fit with company-wide business processes and requirements.”

According to a recent Forrester report, there is a shift toward “Dynamic Business Applications” that is helping to address this challenge. Dy-namic business applications greatly enhance

ERP for the PeopleToday’s business management solutions, particularly enter-prise resource planning (ERP) solutions, are evolving from a

focus on transactions and data entry to people and usability. This includes attention to varying work styles, role-based per-spectives on information and tasks, and the need to extract

information in the context of business processes.

usability and accommodate business agility to help organisations capture the full benefits of their solution.

People most importantThis ‘design-for-people’ approach places the workers’ contextual tasks at the centre of the application’s interface. The tasks are the basis for all transactions, business processes, collaboration efforts, and tools. Transactional processing and performance are still relevant, but people become the most important element of the solution.

Microsoft Dynamics AX 2009 is a leading example of a business management solution designed to optimise usability, improve user productivity and meet the needs of people in a variety of roles to drive business success. The solution’s user-friendly navigation, familiar interface, visualisation aids, and self-service business intelligence (BI) tools are prime examples of highly usable features.

Creativity abandonedJaco says a business management solution can only increase efficiency through process speed and automation. “It takes people, their ideas, collaboration, and decisions to envision products

Rigid business management solutions force people to abandon their creativity

�0 Supply Chain Today June 2010

and services, create value, and drive business forward. Therefore, any system that prioritises information processing over people and their needs limits, the potential of those people and the success of the business.”

He says rigid business management solutions force people to abandon their creativity, and ulti-mately results in poor user adoption, frustration, and lost business opportunities. “After hearing customers describe such limitations, Microsoft made a commitment to place people, and their ability to add value, at the centre of solu-tion design.”

“Make business man-agement solutions as easy to use as

mass market products. The design elements in Microsoft Dynamics solu-tions have a similar look and feel to those used in other Microsoft applica-tions such as Microsoft Office 2007 and Windows Vista, which capitalises on the knowledge of mil-lions of consumers who already know how to use these products,” Jaco explains.

Untapped growthThe Microsoft Dynamics AX 2009 interface design is based on a range of per-sonas segmented across various departments and process groups. These personas, or roles, are the basis for the design of personalised home pages that are central to the product design.

Jaco says Microsoft Dy-namics AX 2009 is a solution that is accessible and relevant to a variety of people can contribute significantly to business success. “Although the usability of a business management solution is only one aspect of productiv-ity, it is critical because it can constrain or magnify all other productivity benefits of the so-lution.”

Individuals often track pertinent business information using separate spreadsheets because using a centralised system is too complex and time-consuming

SOFTWARE

Supply Chain Today June 2010 �1

SOFTWARE

According to a recent study from AMR Research, on average only 15 percent of employees are licensed to use their company’s ERP solution and 46 percent of ERP licences remain unused. Because a limited portion of the organisation is using the solution, the potential for productivity benefits and growth remains untapped.

Daily tasksWhy aren’t ERP solutions adopted more broadly, by more employees, and for more of their daily tasks? Unfortunately, these solutions are often identified as too difficult to use; too rigid; or both. A 2007 Forrester Research report con-cluded that “poorly designed user interfaces can profoundly affect the bottom line. The expenses associated with a bad UI, over the course of the application’s lifetime, may end up being many times the cost of the application itself.”

Jaco says the negative impact of low usability can include increased training times, a lack of user adoption, and a decrease in workplace produc-tivity. “When people don’t use the ERP system, mission-critical processes can be compromised because there is no access to or enforcement of standard operations and best practices. Further-more, individuals often track pertinent business information using separate spreadsheets because using a centralised system is too complex and time-consuming.”

Shared team site“Microsoft Dynamics AX 2009 works closely with the other Microsoft Office products that staff already uses, so they can easily share information inside and outside the organisa-tion. For instance, they can export business information, including list pages, to Excel. Then they can use PivotTable views to analyse the data, generate charts, and quickly distribute the results by publishing to a shared team site,” he adds.

Staff using Word can access information in Microsoft Dynamics AX and link documents to business records, such as a customer account. Relevant information is stored together and easily accessible to others. Unified commu-nications centralises contact and presence information and integrates with Microsoft Dynamics AX 2009. All contact infor-mation is stored and maintained in a single location by several teams in the organisation.

On the spot“Therefore, when you ac-cess customer or supplier contacts from Microsoft Dynamics AX, you can be sure that the data is the most accurate and up to date.

Moreover, you can use unified commu-

nications to determine who is available, easily share information and documents,

and collaborate on the spot.

“Empower your people with a business management solution that places them at the crux of business operations and frees them to exercise the creativity, agility, and collaboration that can drive success. As an end-to-end busi-ness management solution built on the Microsoft technology stack, Microsoft Dynamics AX 2009 provides an adaptable, scalable solution with familiar tools to help staff improve productivity, automate business processes, achieve the insight needed to drive success, and manage growth and change,” he concludes.

Jaco Stoltz, Managing director, Strategix Business So-lutions (Pty) Ltd, Tel: (011) 805-1023, Email: [email protected]


TRANSPORT + LOGISTICS MANAGEMENT

Sustainable Approach to Freight in South Africa

logistics costs. This can generally be attributed to the large distances between typical origins and destinations and the cost of fuel. South Africa requires more transport per unit of commodity than most countries in the world (CSIR. 2008). Almost two thirds of road transport costs are

attributable to fuel expenses and 29% of freight transport cost is exposed to external factors beyond the transport operator’s control (CSIR, 2008).

Externalities affecting freight transport include congestion, accidents and weather. The afford-ability of freight transport is highly exposed and vulnerable to external factors, placing a question mark behind the freight system’s economic sustainability.

Inter-modalOwnership of infrastructure plays a significant role in the success and growth of the industry. The fact that various infrastructure is privately owned, or owned by Transnet, prohibits co-hesion, limiting the systemic operational improvements that can be achieved. A lack of proper inter-modal facilities between ports, roads and rails, is the main inhibiting factor for growth in containerised traffic.

For instance, Transnet’s responsibility for port planning and management deters private sector investment and has resulted in a situ-ation where several ports are badly in need of further redevelopment, investment and modernisation, but are limited by the provi-sion of capital under the control of central government. Common transport development plans and policies-and adherence thereto-are required to avoid micromanagement inhibiting growth in the entire system.

Below parSouth Africa is below par when compared with international freight transport best practice. This

“Supply Chain Today” recently attended the Launch of the CSIR’s “Sustainable Transport + Mobility Hand-book.” The section on freight is reproduced here for the benefit of readers.

A lack of proper inter-modal facilities between ports, roads and rails, is the main inhibiting factor for growth in containerised traffic

E conomic sustainabilityFreight transport supports the South African economy, as it constituted more than 8% of South Africa’s gross domestic

product in 2007. Compared with a world average of 39%, transport made up 53% of the country’s

Supply Chain Today June 2010 ��

is due to insufficient equipment, technology and facilities. Rail transport equipment (locomotives, wagons, signalling equipment and rail tracks) in general are old and outdated, necessitating much of the nation’s rail rolling stock to need replacement soon.

As a result of poor wagon fleet renewal practice, old rail wagons with reduces payloads exist in substantial numbers, limiting the railways’ ability to carry extra tonnage. In addition the rail lines are narrow gauge, which limits their efficient carrying capacity even further. An updated and overhaul of all freight equipment, technology and facilities is needed to improve sustainability.

Environmental sustainabilityIn terms of the non-renewable resources, South African freight transport is highly unsustain-able. All roads, water and air freight, as well as about 10% of rail transport, is powered by (non-renewable) fossil fuel. The state of affairs heavily exposed the country to oil supply risks or disruptions, as road transport is by far the dominant mode in the country.

Only pipeline transport and 90% of rail transport is electrified. Though electrified transport allows for the electricity to be generated from renewable resources (such as hydropower or wind), the dominant feedstock for electricity generation in South Africa is coal (which is another unsustain-able, non-renewable resource).

Substantial damageWith regards to emission, an oil- and coal-powered freight is not ideal. It is, however, beneficial to use electricity as opposed to liquid fuels, because the associated emission can be confined to remote locations and are not necessarily generated at the transport location.

Uneven modal distribution in favour of road transport has caused substantial damage to infrastructure in South Africa. The previ-ous Minister of transport, Jeff Radebe, announced in September 2007 that the country faced a R17 billion deficit to road maintenance over the following five years, relat-ing to nearly 15% of the national road network.

There is talk of restricting the size and maximum loads of vehicles in rural roads in an attempt to stop this trend. While this might solve their infrastructure problem temporarily, trucks are

at their most efficient when fully loaded. Large vehicles and load com-binations have positive effects on fuel consump-tion and emissions, but this potential gains will not be attainable should the size restriction come into effect.

Social sustainabilityModal selection is nor-mally based on the type of commodity and its associated transportation requirements. Not all commodities are suitable for transportation on all modes. Factors that could influence the number of potential modes include the mode’s delivery speed, availability, accessibility, inter-modal connections and flexibility, capacity, safety, reliability and cost. This limits the scope of mode selection.

Poor historic monetary policy in South Africa has led to disputes between various transport modes regarding equity in recovery of infrastructure pro-vision, management, operation and maintenance cost. “The […] situation frequently prejudice South African road transport operators in particular and land freight in general.” (DOT, 1996).

Road over railAdvantages of road freight over rail include: ac-

Tanya Lane

There is talk of restricting the size and maximum loads of vehicles in rural roads


�� Supply Chain Today June 2010

cessibility (many places are only accessible by motor vehicles), competition (resulting improved service, reliability, operations, equipment and competitive pricing) and no perceived need for cross-subsidisation. It is not surprising that land transportation (road and rail) accounts for more than 90% of total transport, with road enjoying 66% of market share.

Inter-modal interchange facilities (of which there are presently very few in South Africa) can facilitate the use of the most appropriate and environmentally friendly transport for different parts of a journey, for example using rail for long distance and trucks for local travel.

Fatal crashesIn terms of safety, 9.97% of the vehicles involved in fatal crashes in 2004 were trucks per 10 000 vehicles. This is mainly due to the extent at which trucks are used annually (number of vehicles miles travelled). A major contributing factor to the cause of truck related accidents is the age and maintenance levels of trucks. The average age of a truck is 12 years. Improved maintenance and regulations should make these old trucks less accident prone.

Driver fatigue is another major cause of trucking acci-dents. Shifting some of the road transport to the modes of transport should, therefore, improve road safety in South Africa. South Africa is a country severely af-flicted by HIV/Aids. The illness is especially prevalent among truck drivers and the transfer of HIV/Aids and sexually transmitted infections is a growing concern in the transport industry. Truck stops can be an important part of the strategy to protect truck drivers against these and other illnesses and provide information on the risks (www.arrivealive.co.za). Human health is also affected by poor air quality associated with transport emissions. Air quality and emissions standards can combat these effects.

ConclusionSouth African freight is generally not considered sus-tainable, at present. A move towards modal integration and a more equal modal distribution will go along way to improve system sustainability. Environmentally speaking, stepping away from non-renewable resources and introducing fuel and vehicle emissions standards should be apriority.

The impact of current monopolies on the freight system should be carefully monitored, provoking government action to mitigate negative effects where possible. As with most sustainability initiatives, government has to show strong leadership to elicit buy-in from all stakeholders in the industry.

Trucks have the third highest number of vehicle crashes



Market Forum

Finance its own vehiclesChina’s leading truck manufacturer FAW, and the China-Africa Development Fund (CADFund) have launched an investment company for Africa with a capital base of more than R800 million.

FAW South Africa’s CEO Richard Leiter says that this investment will significantly help FAW business in South Africa and the African continent. He adds that, impor-tantly, part of this capital will go towards FAW starting its own finance company to serve the Southern African region and beyond.

“Finance through the normal channels has become a real challenge in our field and we welcome this capital, which will enable us to become more entrepreneurial and grow our business.

“This will give us a significant competi-tive advantage as we will control our own deals. Not many companies, if any, in our industry are in such a position,” adds Richard.

Zhao Jianping, CADFund Chairman, says that CADFund is the first equity investment fund in China that focuses on investments in Africa.

He adds that with the capital to continu-ously make the fundamental improve-ments, FAW’s business will continue to grow cross-border where it has dem-onstrated an ability to be successful. “In the last six months FAW sold more than 10 000 vehicles in Africa making the continent, and especially Southern

FAW South Africa’s CEO, Richard Leiter

Keith Fenner

Fat profits “Lean and agile supply chains are critical in meeting today’s challenges of demand and supply uncertainties, cost reductions, and complexity. The intensity of the business arena clearly illustrates the importance of a highly responsive supply chain. A company needs the ability to swiftly evolve in accordance with change, making it essential that their supply chain has the in-built flexibility to respond with the minimum of upheaval,” says Keith Fenner, vice president sales - Africa, Softline Accpac.

While solutions like Business Process Management, Quality Management and ERP have all addressed only the inner workings of an organisation, Supply Chain Management (SCM) aims to integrate the company’s internal systems to those of its suppliers, partners and customers. Tech-nologies such as the Internet, electronic data interchange, transportation and warehouse management software, including software that manages plant scheduling, de-mand forecasting and procurement, make SCM a versatile strategy to adopt.

By understanding what customers demand and what goods

Africa, one of FAW’s most important target areas.

Eugene van der Berg, FAW Vehicle Manufactur-ers SA, Tel: (011) 392-1530, Email: [email protected]


Market Forum

RecognitionNike SA and Barloworld Logistics have recently won Nike EMEA’s top award for supply chain excellence. In 2007, Barloworld Logistics was awarded the opportunity to design, build and operate a Customer Service Centre (CSC) for Nike South Africa. The CSC is a global concept, brought to South Africa to satisfy Nike’s current base of clients in Southern Africa, and to satisfy the anticipated demand for their products over the next few years (influenced particularly by South Africa’s hosting of global football events in 2009 and 2010).

In December 2008, after an incredibly fast turnaround time for the construction and the go-live of its world-class systems, Barloworld Logistics opened a remarkable 16 000m2 facility for Nike in Meadowdale, Gauteng. Dubbed Project Bokamoso, many of the aspects of this sophis-ticated facility are of world-class standard and a first

for both Barloworld Logistics and Nike. The facility is now fully operational and deliver-ing unprecedented results and efficiencies for Nike SA.

Due to Nike’s wide product assortment, the warehousing system required is complex, as it services 25000 active SKUs (stock keeping units), each with an individual storage location. Barloworld Logistics has been able to successfully implement and integrate their own and 3rd party software to manage the complete processing of Nike South Africa’s annual volume requirements shipped through the facility.

Website: www.barloworld-logistics.com

are being marketed to stimulate demand, it would make sense to then integrate directly to the supply chain in terms of purchasing goods. This would typically be a purchase order projection module that understands the dynamics from usage, minimum levels, lead times as well as mar-keting data. Combine this with a view into the supplier in terms of packaging, shipments and delivery times, and the business can obtain huge cost savings when it comes to delivering these goods to store locations.

Website: www.sage.com

New contract in GermanyGillhuber Logistik Group, a 100% subsidiary of Imperial Logistics International’s business unit, Panopa Logistiek has been awarded the management of external warehousing and interplant transport for long-term customer BMW. The additional services will see Imperial Logistics overseeing 1 000 deliveries daily, utilising up to 200 trucks to all BMW Bavarian locations and its Leipzig plant.

“Gillhuber delivers an innovative concept to automotive, supplier and consumer goods industries throughout the supply chain,” says Imperial Logistics CEO, Marius Swane-poel. “By means of modern IT applications and efficiently organised processes, the company considerably reduces the proportion of empty runs and substantially increases capacity utilisation of equipment used.”

Marius explains that Panopa handles the distribution of processed steel rolls, automotive parts, components and the preliminary assembly of certain products for a number of European vehicle and component manufacturers. It devises holistic logistics solutions offering Just-In-Time

and Just-In-Sequence supply of parts and components to various module assemblers, and also to final assembly sites as required.

“With big automotive brands such as Behr, BMW, General Motors, Mercedes Benz, Opel, Porsche, Smart and Volk-swagen as customers, Imperial Logistics offers substantial experience and expertise in this sector,” Marius adds.

Imperial Logistics Southern Africa has exciting plans to progressively expand these, together with more classic / fundamental logistics service offerings such as warehous-ing and transportation in southern Africa.

Simoné Du Plooy, Brand Manager, Tel: (011) 821-5500, Fax: (011) 873-1855, Email: [email protected], Website: www.imperiallogistics.co.za


Market Forum

Online import systemTNT Express announced the worldwide launch of its new Express Import system which gives customers complete control over their import shipments. This web-based tool lets companies order the collection of import shipments from around 170 countries with quotations and billing in their local currency to better control shipping costs.

One unique feature of TNT’s Express Import system is the option to request a quotation before the booking is completed. This means customers can effectively decide when their import shipment will arrive and at what cost. TNT ships the goods via its ground or air network, de-pending on the customer’s budget and timeline require-ments. Express Import is available with any of TNT’s core delivery services.

TNT’s Express Import system not only offers greater con-trol, it is convenient to use and highly automated. The importing customer enters orders online and connects to the sender via email. TNT takes care of language barri-ers, produces the necessary paperwork for the sender, and handles collection, transportation, customs clear-ance as required and delivery of the consignment to the designated address.

The system is available in many languages, including English, Spanish, German, French, Italian and Chinese.

Website: www.tnt.com

Direct route to Nigeria Universal Africa Lines (UAL), the specialist shipping line to the West African oil and gas fields, ended its first year in South Africa in bullish mood, opening an express direct shipping route to Nigeria.

The new route makes UAL-SA the first break-bulk (non-containerised, packaged cargo) shipping service from South Africa to call directly on Nigeria, says Haakon Røstad, MD of UAL-SA. Previously, UAL’s ships dotted down in Durban, Cape Town, Walvis Bay, Lobito, Luanda (Sonils), Soyo, Pointe Noire , Port Gentil, Malabo, Onne (Port Harcourt) and finally, Lagos.

The new route comes at a time of accelerating growth for UAL-SA. After setting up in Cape Town early in 2009, the company set out on its maiden voyage in May last year. Since then it has completed 21 fortnightly sailings up the West coast of the continent, building up a loyal client base of South African industries supplying exploration projects, mines and the secondary industries around them.

UAL’s customers are from industries as diverse as steel, paper, explosives, heavy equipment manufacturing, con-struction material and chemicals. Their numbers have increased sufficiently over 12 months to provide a solid basis for growth, starting with the Nigerian connection, says Haakon.

To streamline the service, UAL has secured an exclusive berth at the Apapa oil base facility belonging to logistics firm Eko Support Services. In terms of this arrangement, UAL customers benefit from immediate berthing, speedy clearance in a customs-free zone, two weeks’ free storage and special tariffs for unloading and delivery to clients.

The Eko facility offers 50 reefer plugs and a depot with capacity for 300 containers, operating around the clock with full guarded security. In addition, the door-to-door service offers barge delivery to Niger Dock on Snake Island across the Niger River. UAL has signed Premier Logistics

Services as its shipping agent, which offers heavy-lift capacity of up to 300 tons.

Website: www.universalafricalines.com


Index to Advertisers

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GSC Awards 10

Engineer Placements 22

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M&M Systems 34

Paul Steyn 20

Psion 18

SA Industrial Linings 24

Sapics Outside Back Cover

Toyota Outside Front Cover

Universal 12

Westcon Mobility 36

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On the MoveC r i t e r i o n Equipment, a wholly owned subsidiary of Invicta Hold-ings Limited, has made the following ap-pointment an-nouncements:

Brenton Kemp is general manager and Shaun Collins is national sales manager.

Brenton Kemp Shaun Collins

Growing Logistics Road Transport company, Concargo (Pty) Ltd. re-cently named Dean Page as its Chief Executive Officer. Dean will report directly to Concargo Founder and Chairman, David Kruyer.

As a supply chain and logistics industry veteran, Dean will bring his financial and transport industry expertise to his role as CEO. This

will help Concargo through its high growth period and help expand its role in the industry.

“Dean has outstanding credentials and is a great fit for this important position. As a small company, we recognised that we needed someone like Dean to grow our business. His corporate, financial and leadership experience as well as his expertise in the transport and financial industries will serve us well,” says David Kruyer.

“I am thrilled to be heading up the Concargo team. I am committed to their mission of providing solutions and quality added-value services,” says Dean. “The Concargo model works. I look forward to leading the company through this exciting growth period and into the future.”

Dean Page

Kemtek Imaging Systems Holdings Limited has appointed Andy Baker as Group Chief Executive Officer, effective March 2010.

Andy spent the last four years with the Altech group; the last 2 years as Group Chief Operating Officer. Prior to this he was with DHL Express for 12 years, spending four years as Regional Managing Director of

Southern Africa and a year running DHL Turkey, based in Istanbul.

Toekie Rudaizky, Chairman and Founder of the Kemtek group comments, “We are delighted to have Andy on board and feel that his international experience, coupled with his more than 20 years experience managing businesses, will bring great value and future growth to our group. Andy will complement Kemtek’s existing accomplished executive team and our philosophies of bringing superior products, accompanied by superior service to the industries we supply will be further enhanced and consolidated in the years ahead.”

Andy Baker


The beat goes onThe 2010 Soccer World Cup will offer many challenges for the operations management profession. But what happens when it is all over?Supply Chain and Operations Management professionals must maintain a steady, reliable beat as we continue to move African industry forward to ensure our sustainable footprint.

25 - 28 July 2010 Sun City

The SAPICS Annual Conference is the Leading Event in Africa for Supply Chain and Operations

Management Professionals.

32nd Annual Conference & Exhibition

T 011 023 6707, F 086 575 2979 or [email protected]. www.sapics.org.za

With the participation of: Principal sponsor:

Silver sponsor: Gold sponsor:

Platinum sponsors:

SCT: June 2010

Documents

Transcript of SCT: June 2010